markets before we hand it over to our friends on "squawk on the street." where things stand right now. we have green on the screen. dow up about 74 points, nasdaq 22, s&p 500 up about 5. take a quick look at treasuries. 10-year at 4.34, 2-year at 4.3. more news coming to you tomorrow. make sure you join us then. "squawk on the street" begins right now.to you tomorrow. join us tom. "squawk on the street" begins right now. >> good wednesday morning. i'm carl quintanilla with jim cramer, david faber at post 9 of the new york stock exchange. futures steady on a big day for retail earnings, media and tech. nvidia reports tonight. one of the last a.i. catalysts of the year. target with the biggest earnings miss in two years. set to fall from 16%.

plus, our parent company comcast, planning to spin off most cable networks. and nvidia earnings, the tech skbrient set to report after the bell. >> let's begin with target. tumbling after this q3 miss. they say results were hurt by consumers tightening belts. higher inventory levels came into play. retailer cuts, holiday quarter guide. this cornell on the earnings call a few moments ago. >> we aren't happy about the reduction in our outlook the remainder of the year, we believe we are managing our business appropriately and we are helping our team stay agile and ready to respond if the business accelerates. and our q4 plan is focused on ending this year with an inventory position that will best position our business going into 2025. importantly, we are still confident in our long-term strategy. growth shows that we are winning with our guests and making the

long-term investments that have delivered strong performance over decades. >> jim, target has now comped below walmart for 36 months. >> yeah. i think that there is a case to be made as i did at the top of the show last night, three major retailers in the country. there is amazon, walmart and costco. and i think walmart is taking share. no. walmart is taking share. i think a lot of their share comes from the fact they have 60% grocery. very low price for groceries. go there for groceries, about buy everything else. the question is relevance. target has good brands. target has a taylor swift giant production for -- to start the christmas season. but in the end they don't have the horses. >> you don't think so? ? >> no. >> the analysts right now seem to be focused on this margin, the miss on margins. and whether or not the company can be expected to sort of retrace that loss profitability

or not. i guess that would be a key thing how you evaluate the future of this company. >> that's true. unfortunately, you have a shortened holiday season between thanksgiving and christmas. fortunately, beauty was good. they still have their house brands that are doing well. they lack relevance that has to do with the fact that food if got too expensive in the country and people gravitated to walmart. 20% of target is grocery. sop in an environment where, not to be too political, the democrats didn't understand inflation, i think there is this element of retail that doesn't understand the importance of the grocery. and target may be just not have the scale of what -- >> when you say unique challenges and cost pressures, what are they talking about? >> they had some port issues. when you go into target there is -- they got to do rollback like walmart.

they got to hurt the gross margins even more. it's not clear by the way the inventory number what that really is, what does that mean. i don't know if they have excess inventory. >> they said they built up to prepare for port -- >> you want christmas, you know, they are -- they have christmas trees in. apparently that's working well. the issue for me is price. america has rebelled against anything that hasn't cut price. walmart rolls back thousands of prices of things. in america, they say we want value, we have been hurt 2019 to now. we paid too much. let me go buy $5 of good food, that's the walmart price five, that's the mcdonald's price five. ten is the go out price. and that's texas roadhouse and that's chili's. there is a $5 food item and $10 dine out. if you don't meet those targets, they are not going to you. it's important because costco can do it because they can jam

the producers. they will say, we will make something against you. only failed against coca-cola and pepsi. frankly, it's not existential. they can pull it often. they have giant back. but what we are looking at is amazon the fantastic offer for go to. you have the bricks and mortar walmart actually working at distribution, get it to your house it 45 minutes. then the lack of scale target, doing well with shipped but it's been passed by walmart. >> e-commerce up 10.8. yesterday walmart e-commerce up 22. today, i mean, they are not that many analysts writing now, but citi does cut to neutral. they were at 188. they go to 130. to your point, jim, losing share they say likely to lose more share, and that in their view means more promotional season. >> they must be more promotional. they have to come down in price. they have to be willing to have

a walmart day. now, you remember the walmart day, we got to raise everybody's salary and do what's necessary. >> yes. >> i mean, these -- look, by the way, marlboro black friday. back 30 years. we have to crush ourselves. do a new blue line. now, they have -- they bought back $354 million, retired 2.4 million shares, $9.2 million remaining capacity. they can take that money and just say we are going to slash these items or buy all the shares and then hope that they still have the cash flow, which i think they do. >> we are talking about target, not walmart. >> they have to do it. say, look, here's the 500 items where we beat everybody in the world. and they don't make money on those 500 because they have a new baseline. they just can't be as profitable as they'd like to be. and you have to come and say here's where we beat walmart.

here's where we beat amazon. >> you have come to our store. >> you have been favorably disposed towards management in the past and brian cornell. are you still? >> it's harder. i think that i have been favorably disposed because i think it's fun to shop there. it's a great place to shop. i like their house brands. i always felt that they are less expensive. let's say you take a trip and go to target first, it's always been a destination. the taylor swift thing is going to be, you know, people want to know what she is singing. he is a very smart merchant. when it comes to the price, this was overlooked by target. what happened in this country was overlooked by vice president harris and overlooked by brian cornell. >> two things. one is this is an interesting move because positioning was not heavy going in. expectations were not that high. they still disappointed. live nation, delta's comments about their consumer. williams sonoma is up.

the consumer is spending. >> i have the ceo on tonight. you will see that stock up -- could be up 40, frankly. >> the best earnings gap i think since '01. >> i speak to laura they have the best digital -- >> so much for people not spending. >> exactly. the price points are very high. they offer value versus price. so in other words our rates, doesn't have the numbers they have. that's the comp. and what's amazing about what laura is delivering is she is delivering a premium product for a value price. and that's the best of all. >> i like that combo. i like it. >> you like that? >> yeah. i'm all about value, price. >> she likes it. >> by the way, i am also about value for value. if we end on tjx. the market cap is well more than twice that of target's. stock's not going to do much

today, open town to flat. >> no, down 3%. >> yeah, well, we will see. >> go ahead. >> store sales up 3%. up 6% for the first nine months of the year so far. i am just looking at what they returned to shareholders here. $1 billion operating cash flow for the quarter. also bought back five million shares and another 423 million in dividends. about $1 billion return to shareholders. there is the market cap comparison. tjx doesn't talk. >> no. the last four quarters they actually gave you what lacked to be a pretty good goal and so far exceeded it that you just have to own the stock after the smoke clears. if people think this was a bad quarter, they must learn the history of how tjx reports, which is great quarter, real big beat, not as big a raise, and next time great quarter, really fantastic, not as big a raise. if you look at the long term of

the stock, you will see that their guidance has not meant as much versus any other company i follow. the guidance is not the guidance. >> guidance is not the guidance? >> guidance is not the guidance. . long-term chart of tjx, i like to call it their chart. >> there it is. >> okay. >> very similar. >> see all those different gaps down the crevices? >> yes. >> those are the quarters people say i am scared. why don't you go to the tjx next next door? i got this belt. $12 belt with a -- >> let me get this -- >> this is what tjx. >> don't take off your belt. please. >> my pants won't fall. >> okay. >> maybe we should get to comcast. our parent company. of course -- >> do you think the belt is nice? >> beautiful. >> what did you think of the -- >> i like that as well. >> that's all i need to know. >> i like the shirt, tie, the suit is beautiful. >> thank you. new suit.

>> the watch. you've got to all working. i try. >> the model is not working. >> thank you. >> how come i have a breoni? >> burn it. this was something that has been previewed a few weeks ago on a conference call from comcast. it is now official. the company is planning on spinning off most of the cable networks. bravo stays with nbcuniversal, which continues to be the studio, the them parks, bravo, peacock, and nbc, the broadcast network, including nbc news. what's going, there it is. yes, we are in there. ms, e, sci-fi, golf, usa and oxygen. these things take about a year. the filings, a lot of things to get together. what happens now? well, my understanding is you, obviously, have to decide on a

capital structure. comcast has been saying consistently well capitalized. what does that mean? probably no more than one times ebitda in terms of leverage. call it billion in ebitda for the year, maybe much as 2 billion in debt. maybe not. speaking to people familiar with the situation, studying it this for some time, mark lazarus is going to become the ceo and brian roberts while he will not be on the board will continue to have a third voting control the same way the roberts family does for comcast overall. the idea is to free this up to pursue its own future, generate free cash flow to use to try to grow. that is sort of the key contention here as to why it makes sense. what may be challenging in addition to some of the dissynergies, guys, splitting msnbc from nbc news, and other

areas that come with a split of this type, what is in question is what do you get from the distributors for this group of cable channels. where is the leverage? if you don't have access to nbc broadcast, can you get the cable distributors. comcast is a key one and you probably can sign a if nice long-term there with chartary and the like to step up and continue to pay. free cash flow or cash flow ebitda keeps going like it is. the question is, can you ameliorate it over time as a result of other initiatives that you can undertake. you no longer have to worry about paying for the or funding the losses at peacock and things of that nature. >> i wonder whether we have scale. i am speaking about the spinoff. i think you are right that where is the bargain leverage. i think that you have to move on -- >> what? >> combine with someone else. you don't have the presence. now, i'd like this to think that you're right, david, it that

it's each in its own bottom. if that's the case, it's pretty exciting for us. >> it could be. and i think that is the contention of comcast, of nbc's management that this gives it an opportunity to do that. will there be multiple revision on what is left? on what is left, on the main company, unclear. we will see. you have seen it play out in the market. went up on the day it was announced on the conference call, a possibility. only took a few beaks to decide to move forward. plenty of questions, of course. we know how difficult this new world -- it's not new anymore, the declines have been far more than anticipated. as i said many times, by the most pessimistic of observers in terms it of how many people are dropping the cord, as in in cutting the cord, carl. that said, again, let's call it fox trades at six times ebitda.

ms four and a half. two billion, $10 billion market cap. a dividend. maybe it's attractive to some investors and then maybe there is an opportunity to consolidate further. >> we would be the consolidator. >> to cut costs. and if you really want to believe in the future you have to come up with other revenue streams that are significant over time. >> what kavanaugh meant when he talked about playing offense. bernstein, we won't debate what appropriate valuation would be, but what would you put on an asset in perpetual decline? they point out better late than never. would have been more value accretive a few years ago. >> cash flow perspective to deal with ongoing structural issues. those are the questions. >> the bench narcotic? >> i did not. i don't want to read them all. they don't understand what we can accomplish here. they don't really know what

we're capable of, jim. they don't. >> no. >> what we can do with this brand alone. obviously, a great deal of free cash flow from this entity. there is that. it will produce a lot of free cash flow initially. >> explain the free cash flow to me. how do you know it will produce a lot of free cash flow? >> we can assume that that will continue to be case more or less. and marches gins are high and advertising is okay. >> you said at the beginning that the negotiations, the power, i mean -- >> how do we determine something when we have a fractious group of people that we will be selling to? we love you guys. you are terrific. >> is it a must need? do we really need -- >> oxygen, you know, not going to turn off the oxygen. the question. but this is about -- this is going to be an -- i heap it's

not an every network for itself situation. we need to be more indispensable than we are. >> the other point is that those with the broadest portfolios, namely paramount and warner, for example, have also the biggest issues with leverage and do shareholders want leverage? >> right. no. this is if going to be capitalized. i believe it will not be heavily levered in any way because to the extent that management is being serious in terms of saying it's going to give it an opportunity to really try to grow, you need to be generating free cash flow in order to do it. you can't be worrying about a leverage you got to pay interest on. >> do you think the free cash flow -- it's very personal. >> of course it is. >> do you think the cash flow we generated has funded operations that have not been profitable? >> yes. >> are you a blue state? >> of course. we are sending our tax dollars over to them. what are they doing with it? >> what the hell? i'm trying to say something positive. give me a break.

>> we will be able to control -- >> the jaguars have -- have you looked at that schedule for the giants? >> by the way, lazarus, he is amazing. >> he knows the schedule of the giants. >> he is incredible. i don't know him at all really. >> give me an introduction. >> kidding. trying to get on his good side. >> there he is. that's him. >> i have been here 1 years. what are you gonna do? >> the guy comes home with scott. last week. >> mark lazarus? >> interesting fella. >> by the way, on paramount, larry ellison will et them do whatever they want. he has the pocketbook. >> he is the -- >> they could consolidate. >> he runs oracle. >> yes, but he will be the control of paramount as well. >> well, what does thatnine? i mean, do i have to brush up -- >> suck up to him, too? yeah. . add him to the list a long list. >> he says things that i categorically disagree with. >> good response. nice blow back.

when we come back a look at nvidia. going to report earnings after the close tonight. important and we'll talk about some of the expectations going in. we will get to some calls on m teoo dnewi hd,isy th jiafr a break. free cash flow. cash flow. chu ing 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. it is, right. he gets it. yeah.

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get amazing savings and connect to wifi speeds up to a gig on the go with xfinity mobile. fly don't walk to get our best deals of the year. connect to the world of wicked this holiday, only in theaters november 22nd. . wall street awaiting a big earnings report tonight. nvidia due out with quarterly results. a watch on to see what they say about a.i. demand and what's ahead for the blackwell gpus. we had a long discussion about whether that is dynamic for this quarter or next. >> yeah, i think this is a very difficult product to make, blackwell. and it's very difficult to coordinate it with what michael dell is doing, the big installer. we had a supermicro -- who knows, be able to file with bgo. you have hp enterprises. they all have to work together with clients. you can't just say, listen, i'd like to order some of these things off the rack.

as a matter of fact, the rack has to be built. that said, all that keeps happening is orders, orders, orders flow in. no one has dade -- yesterday was positive meeting with microsoft. no one has said you guys haven't delivered this on time. we are switching to x. the fact is you can't switch. which is a very interesting moment for a company with a multibillion-dollar product that you can't switch even though it's delayed. i think that speaks to their -- the greatest scale i have seen of a tech company. and i am not -- if someone sells it on the idea that it's push back to the second quarter because the yields will be better, i think someone doesn't understand the semiconductor business because it's hard to make sem aies. >> this is much, much harder to make semis. if amd had a competitive product, then i think that you would be very worried. but i think amd by its own

admission would say we don't have a product in that league. therefore, if you sell, i think you are selling it and then you will be faced what happened last time, people sold it all the day down to 98 because they felt that somehow -- they finished the mission. he would tell you that we're early innings. i usually don't like that kind of analogy. but i thinkner in early innings. >> you do? >> yes. >> you continue to believe that? >> well, i have been right. >> listen, we will spend time on continuing to question the spend that will take place next year by the hyperscalers. the enormity of which is almost hard to calculate. 300 billion and counting perhaps. much ending up buying the chips that they are offering and weather whether or not it will -- there will be a significant return on that investment. i am sure through 2025 we will talk about it. it even comes to microsoft and copilot, which satya nadella was

talking about yesterday. talking about in their meeting yesterday as well. there are questions about its use case in the enterprise now. >> absolutely. that's right. you have to say let's be accidentcal. at the same time, you meet with rockwell and they have tremendous demand for companies using nvidia, you meet with the world leaders or talk to them, they wouldn't to ant to have th. they don't want to be captive to ours. you speak to meta, meta wants this so badly. and amazon -- andy jassy can't get enough of these, the ceo. hard to discern. i understand they can't get enough of them. these are -- >> and xai. >> yeah. probably most -- >> yeah. >> musk. so you look at a product -- we have never seen a product with this kind of demand ever. >> no. the old rule, one man's margin is another man's opportunity is

broken for now. >> john d. rockefeller when he had 100% of the oil market. >> good business. >> cramer's countdown coming up. the premarket on a busy day for several industries. slightly in the red now. don't go away.

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the opening bell is brought to you by nuveen. let's get to a mad dash. a little more than a minute before the opening bell. >> you aceh accused me of being mercurial, unruly, perhaps capricious. >> all those things. >> a very good analyst, he has a piece this morning, apple, best idea, pitching one page, 20 slides. this is why you should not sell the stock. the most salient thing, $9 earnings per share in 2006. if you use that number and you put a -- you get 129. microsoft, you get 248. if you put spx -- you know, all

of these you make 234 times earnings you make money. i'm saying this piece basically says i know you think it's expensive. the 32 multiple. but 32 multiple, $290. >> yeah. >> that's amazing. >> on a nine buck estimate. >> so i think that, you know, if you give it a 32 model, use tony's work, that tells you don't sell the stock. even though the quarter may not be up to snuff. even though christmas may not be up to snuff. this piece makes me feel more confident than i felt. i don't know if he is going to be on today. if you put a 26 -- $26 -- on 26 numbers, $9, 32 mobile, 290, why sell? why not own it? >> let's get the opening bell. the big board, boot barn at the nasdaq new york jobs ceo council, a nonprofit celebrating progress in hiring 40,000 underresourced new yorkers. i thought when you were doing

apple you would do this counterpoint data, china sales down double digits, which i know you never like. >> there is a piece that says -- actually evidence lab. i do like the evidence lab. they happen to have a show on cbs after football. >> that's paramount. >> larry ellison has that? >> yes. >> he talks about how there is virtually no problem getting any -- there is no delay in getting of the -- any of the high end products. that piece stung. apple has dealt with china decline. it hurt the stock badly last time. look where the stock is now after hurting so much. they are transitioning in a very good way making china to be by far the biggest market to india. it will take a while h there is no doubt in my mind they understand india better than any american company. any american company. i'm very positive on it that.

they are going to make that deal in indonesia, which puts them back. philippines big. mexico. countries, if you add them up, come to the equivalent -- i added them up, the countries we used to call third world are developing, they equal 1.4 billion. what else is 1.4 billion? >> china. >> thank you. what else? >> india. and what is the age group china? >> older. >> and what's the age group india? >> younger. >> i rest my case. >> there you go. all right. speaking of names that came back, disney, jim, i know you were active last night on the disney treasurer. this is their sixth ship. iger talked about bringing the theme park experience to the boats. >> i had an extraordinary time. and you will see it. i have got a big presentation on it, on disney. but i spent a lot of time with josh, and he is in charge of disney experiences. he is a remarkable fellow. that's who i interviewed.

i am watching this for you, john, watching with james gorman. the ceo -- yeah, and we're, like, huh? and we are sitting on -- we are taking pictures and sending to everybody we know. and then because this was extraordinary. this was the disney magic. this was the stuff that says why is the pe so low? this is not just some company that is in the entertainment business. this was exciting. it was eye-opening. and i felt at the end of the day spending with disney, why? wow, it's still special. the magic. there is magic. and the drone, by the way -- i wish you could see -- i wish it -- >> doesn't do it justice. >> no. i told hugh johnson, this is the cfo. we are not joking around. what did you think? it was like, i believe -- gorman, have you ever seen gorman anything other than -- well, i think -- gorman like, whoa, like that, blown away.

and bob iger came by. we were fortunate to go on the ship. we were all kind of saying the ip. our focus was on the ip. >> i should have said yes to the invite. oh, well. >> what do you mean? >> didn't they kristin the thing last night? >> i went to that. >> i didn't go. >> you should have said yeah? your absence was noted -- >> nobody went -- >> no one cared -- >> nobody -- >> the intellectual property. >> nobody gave a crap. >> when you saw -- >> gorman using words like i didn't want to hear on the air. gorman mentioned -- >> yeah. >> it's the intellectual property -- >> i thought you were my friend. >> what are you, michael? i mean, stop it. just stop it. >> okay. >> just stop it. why don't you take your wife and your mistress and go to -- okay. i think that there is a notion that was really -- this was about distinguishing a body of

work, the multiyear body of work that disney uses on the cruise which makes it so -- as much as i love the region, carnival is good, obviously, royal caribbean the big winner, they have something special. 5% of what carnival's cruise numbers are. but it's symbolically much bigger. i talk -- interesting. mark, close contact, salesforce, they are a part of this agent force and the 360. if you if to the theme park, you are going to go to this. that's like the great overlap as long as you know about it. so i was -- i drank the kool-aid. it's well capitalized. >> yes, you are singing a different tune when it comes to disney these days. >> i am. >> yes. >> i told you that i was capricious. >> you are. >> mercurial. >> erratic. >> erratic. >> end up being right. may end up being right. >> like nvidia. name the dog at 3:00 a.m. >> we know. >> you know, you don't know. >> no, i do.

>> see -- >>. >> i sit here -- >> i'm quoting roger ailes. i have gone off the deep end. you say something 18 times. jim, you have not mentioned this 18 times. and i -- and that was -- you know, he understood tv better than anyone i ever met. >> he did. >> he also understood -- built a legacy. not necessarily one that i share. it is legacy of power in power that no one has seen. >> that is true. and one reason why fox shares are up 56% this year. that legacy lives on driven by fox news. >> as rich green field pointed out this morning, murdoch got in front of this move by comcast. >> murdoch, man. hyper rational. i remember when i broke that disney story years ago. but the people who were describing -- because i remember at the time being -- when i was reporting, like, what? he is selling? made no sense. everybody was like rupert murdoch is hyper rational.

he saw it long before others. >> no, he is great. >> what a price he got. >> but he sued me because i left to go to another network. notably, this one. i bumped into him at the white house correspondents dinner at the after party. it is fine. you are suing me. yeah, i know. i said, yeah, we can be friends. yeah, let's be friends he is other-worldly. he is a pixie-ish figure. i couldn't hate the guy. he was suing me for everything i had. by the way, don't worry about the outcome. >> it worked out. >> but he is just -- he is very -- >> rupert murdoch had more influence in the media in the country than pretty much any man in the last, you know, you've got to go back to william randolph hurst. that said, we will see if elon musk -- >> wait. rosebud? >> rosebud, baby. >> rosebud? >> yeah. >> that's a good one. >> wow. that's high praise.

>> true. >> perhaps the greatest reporter -- >> and everett sloan. >> while we're doing disney travel, delta's guidance for '25, revenue growth mid-single digits, capacity three to four. ed bastian had a lot to say about crowdstrike, boeing. everybody's customer now. that's all. >> oh, okay. look, he has tough -- because united has been on fire. i think that the only thing i don't agree with that is i think e should settle amicably with crowdstrike and do it fast because he still uses crowdstrike. i think that's often a sign that it's not irreparable, david. so you could say, well, maybe i just want to be with a stock that's up a huge amount. >> yeah. maybe you want to be a stock up a huge amount. >> that capricious? >> y'all. but are you -- >> by crowdstrike here? >> the stock's almost never

down. >> guys -- >> george -- >> i know, la lamonz. >> you should start counting. we are a few away from 18. we will be done soon. >> at nvidia, 18,000. >> roger will be rolling in his grave saying, david doesn't understand the tv business. >> david used to -- he would say, yeah. he was -- i joint cnbc three weeks before he did. but then he went off and created america's talking. then became msnbc then he went and did fox. we don't need to go through the history of roger ailes. >> could i end it? the program i was working on and departed? >> what was it. >> it was called am i nuts? >> and we are still asking that question even today. >> no. >> 25 years later. >> advice. >> oh. the pharmaceutical companies showing a bid. lilly up 1.6%, although pfizer down again. i am sure you guys saw they have

a new head of r&d at pfizer. they are still dealing with the challenge from starboard and zwref smith, significant activist in their shares. there is a -- take a look at lilly. there is pfizer. we talk about pfizer in terms of the disappointing performance of that company over a long period of time. and certainly since the end of the pandemic as well. >> did you catch on the walmart call that they talked about how the gop -- actually hurt their gross margins because there is so much business? that's lilly. and what's also wegovy -- >> wait. i am not following. >> on the walmart call -- >> yes. >> they said in the pharmaceutical side it was good, but they had some gross margin pressure, gop-1. they are selling so much. this stock came down from the 900s. we put out a bulletin yesterday when it was 710, buy it. if you don't own lilly, buy it. it's a juggernaut. when they mentioned on the

walmart call, oh, my god, are the grocery sales down because of it? the fact is -- >> it was about pharmacy at walmart. >> yeah. also america's pharmacy. >> sorry andy jassy, they are america's pharmacy. >> mizuho, dr. oz going to cms titled how i me met your mother. and they write, these appointments signal what could be years of chaos and public policy that won't often be friendly to financial markets. >> that's -- i don't know. i think it will be kevin marshall. treasury. >> he works at treasury. you are avoiding the question about potential results of these appointments, whether it's -- >> i known dr. oz for 25 years. he is a respected doctor. there have been critical articles. he is one of the more thoughtful of people i met of doctors. >> surgeon, yeah. >> great surgeon, yes. i will say that there are people who feel he became too much of a

tv doctor. not true. i think he is a brilliant man. do i agree with him in everything politically? no. i think -- he has talk to me many years about the cost of health care in the country. and i know that he did not win as senator. i know that -- look, he's -- he is in an odd choice until you get to know him. and you get to know him, he is so throughoutful. you showed me an app about how to be able to get the cost of health care for yourself much better. he is a thoughtful guy. i am not sucking up. you said i was sucking up earlier to who? >> it's hard to -- the list is so long. larry ellison because he will control paramount. >> i'm going to call after this show -- >> make want to suck up to mark lazarus immediately. >> that's done. >> you have been sucking up to iger and gorman recently. so that's nice. yeah. we will go through more. >> yeah. >> okay.

>> not alan skarp. >> he doesn't like me. >> me neither. >> i sent him a net. didn't seem to matter were you don't want to be his enemy. >> no. kevin walsh i think. but dr. oz -- >> mark rowan is going down there today to mar-a-lago. >> i thought -- dr. oz comes to the giants games with the eagles. >> former private equity investor, ambassador to japan. >> a good man. >> yeah. i don't know. yeah. i don't know too much about haggerty. >> would be really received in the financial community. no, rowan would be very well received. >> he is a hitter. so is walsh. a thoughtful guy. >> great communicator. >> the board of governors, fed from 2006 to '11. >> around that a long time. >> director much u.p.s. rowan is someone i -- look, if treasury were a stock, rowan. buy the strong -- >> the main thing you want to

convey is stability. you have $36 trillion in debt. we have a lot of creditors out there. >> a lot of debt. >> what was it politico said? treasury is the one agency he cannot afford to break? >> he has to keep josh frost. how is it possible that you have all this debt and still have an up market when in the '90s they had no idea how to handle debt at all? i think i may have passed josh frost going to wendy's, i would never know. he managed to put together a schedule -- i would actually if i were president trump -- by the way, i am not. i don't know if you noticed -- i would ask some of the staff to stay. don't broom everybody. >> i hear you. of course there are. >> pros at fda. >> there are pros at many of these places which -- >> they are not -- >> no, they are not. real pros thought. >> right. people devoted their lives, who have been -- >> great deal of knowledge.

>> not the enemy. >> that's a key question. if they follow plan 2025 and empty out the deep state as they call it, what will be the impact, jim? >> well, 2025's harsh. yesterday i talked about this fellow wright, the energy secretary. you know, the first thing he says is there is no climate issues. the second, he calls the -- any of the plans to get a carbon free -- he calls them sinister. >> yes. >> there is, obviously, 21 companies in the s&p that are oil and gas. i am friendly to use that term with probably half of them and there isn't a soul who agrees with this man. a soul of the oil ceos who all -- on -- background -- agree with this man. >> yeah. no, i thought that was interesting. when you showed me those quotes -- >> don't read his -- if you want a -- if you -- >> what is the gentleman's name? >> wright. chris wright. >> if you read his last page, conclusion, i think it's okay, one point off, it's low, not doing that well, a low multiple,

not a star. buy haliburton over it. but the one thing i say if you read that last page of the conclusions i would have left that page off if by were him. the reason is because this industry is a fraternity and the fraternity has switched to the point that maybe one of the deans is tom jordan. i called him. he is compensating his people to make it so that there is less climate disruption. he is compensating his people. that's how you get -- that's how you advance. now that is -- >> down about 5% this morning. this one firm disclose ago short. >> vision impossible. that's kinda fun, right? fission impossible? i call it the identity. >> that's not bad either. >> ham. you are looking very tired. yeah, i think this is -- >> possible. >> no, it's funny. by the way -- >> fission, would be nice.

>> right. there is no hindenburg aspect there. >> no. but fish, yeah, ult energy source. >> yeah, the energy secretary. chris wright, the person i mentioned, not as progressive as others about climate. they are saying that -- okay. rebounded. rebound on the recent nomination of chris wright. that's probably not wrong. chris wright's -- or -- >> right. >> different. >> one is this doubling upgraded chewy at b of a. they argue pet spend is bottoming. >> i think that's true. look, amazon has a very competitive product. this is an interesting kpp because chewy was not positive about their own stock. they called one day. i want to come on the show. that was in 2019. we got it together. >> this is a good quarter. things are where we want them. the stock almost doubled. i would still go with him.

>> pivotal 1,100 netflix after the fight and now we have beyonce singing at the christmas day nfl games. >> look, they -- they are charmed. i don't know. that thing -- i don't know a what you can do to shoot down spotify and netflix which people think are great bargains. prime, spotify, netflix. the great bargains of the time, david. >> are they? okay. >> and costco -- >> they are not getting cheap early. i don't know what i am paying for them. they have gone up a lot. talk about inflation from where they started. >> well, do you think -- what is cnbc going to be priced at if you want -- >> there is no price you could put on cnbc because of its incredible value to our viewers. >> pes are infinite. >> cnbc has unlimited value, jim, to our viewer smip, which should be larger than it is. >> everybody in the company trades stocks, not crypto. >> yes. >> it's something they do while at work. how else can they make money? >> they have to watch us. >> there you go. >> by the way, i paint out

apollo shares down on fears of rowan's exit. >> i think it will be kevin marsh. >> buy apollo on jim's belief. >> i will mention it 18 times. >> roger ailes mentioned -- >> oh, my god. again with ailes? >> in my recent memory. watch bonds -- >> told me to -- >> to jim's point about treasury, a 20-year auction today at 1:00 p.m. then fed speak with a bit of a range this morning. dow's up 15. don't go away. you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does.

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couple of points. we'll take a short break. be back after this.

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jim, what's on "mad money" tonight? >> laura albert. by the way, everyone tells me

that category is week. why is she shooting the lights out? along with george kurtz from kraus are the best in cyber. he reports tonight. he will come on the show. and stanley, they never achieved -- we will find out about tariffs and how are these home depot really doing and how is lowe's? i want to point out again for club members, please listen. we will have positive things to say about tjx. we made money for people every single time it from the '70s from this point. i don't think it will miss again. i don't want like to give things away, but that's what i do. >> settling into the red a little bit. a couple percent. >> it's a great opportunity. it will be again. you don't have to buy it fast. >> a huge day and a huge night tonight. see you at six. >> the whole thing is huge. >> "mad money" 6:00 p.m. eastern time. when we come back a lot more on what to expect from nvidia's earnings after the bell.

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♪ good wednesday morning. welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla and david faber, live as always from post nine of the new york stock exchange. stocks are under a little pressure today. s&p is down about .5%. most sectors are lower. energy and health care your standout win percent consumer discretionary at the bottom of the pack. target story among other names weaker today in the group. consumer staples and information technology, communication services, they're all lower today. nasdaq down about 0.75%. we're still higher overall for the week after last week's losses as we get into wednesday and ahead of nvidia earnings after the bell which will be of the media names higher bucking the overall trend. take a look at treasuries.

higher yields have been the story and that continues today. 4.4 on the 10-year yield. we're not quite at the highs of say this cycle we've been in, but again, another day of selling of treasury yields with higher yields. 4.3% on the 2-year. we're 30 minutes into the trading session. here are movers we're watching. target shares slumping on pace for the worst day since all the way back in may 2022. the retailer missing earnings estimates, cutting its full-year forecast as well. exclusive comments from the coo in a moment. delta airlines under pressure, holding its investor day, expects revenue growth in the mid single digit its in line with the 6% growth that analysts were expecting. the stock down about 4.3%. our parent company comcast planning to spin off most of its cable networks. shares giving up gains. much more on what that means for investors and the media landscape later this year. also just mentioned bitcoin because guess what, hitting new

all-time highs again. crypto related names riding the rally. coinbase and robinhood among them. some rumors of who president-elect trump might be looking at for the head of the sec playing into that. potentially coming from the crypto space. every day a new catalyst. >> micro rategies 11%. >> now in the top 100 market caps? >> micro strategy. >> i think it may be. it's $100 billion market. >> their balance sheet all bitcoin. from a tech company to a pure play bitcoin company and it's been a good bet. >> 163% this year. >> not bad. keeps buying. >> yeah. >> just buys. >> bought another $4 billion. >> let's talk about target, though, because i think that's key to focus on as it relates to it tells us about the consumer and tells us about target overall. so the big disappointment. target having a challenge with sales and growing sales. the big disappointment in today's numbers was the earnings

miss because target had been a good earnings story as well. the margin miss and earnings miss. earnings missed by 19%. and it was driven by weaker comp store sales, lower than the market expected, and a 100 basis points gross margin shortfall. they have two issues. macro for sure and where consumers are spending and how they're spending and market share after the good quarter out of walmart. i did speak with the coo about what the story was here when it comes to target and what they were experiencing. look, he started out by pointing out what he was pleased with on the good side and said traffic was higher, it was strong. that's good. another bright spot was digital which grew double-digits and an acceleration. of course fiddelke noted the disappointment in the earnings story and the way that he explained that he said softer than expected discretionary performance in apparel and home which are typically more profitable, so we lose the

margin there, and it shows up in the bottom line. now, clearly that was part of the issue. target's more of a discretionary play than walmart. the food business did well the beauty business did well. apparel was weak. apparel sales down slightly which is a deceleration, but he said there's hope on the way because cold weather is coming and that should boost demand for coats and sweaters which they haven't seen. homes and hard lines has also been a tough category and softer for them for a while. as far as what they're expecting for the holiday season and described the consumer overall, did the consumer turn down? are you seeing a weaker consumer? >> i don't know. >> he said not necessarily. the consumer is resilient. used the word resourceful. they're responding to promotions and then using those savings to buy newness. >> we were talking about this earlier but what explains williams-sonoma then? if you're talking about home, for example, and they had a great quarter, stock is up 23%.

>> two things. they're growing market share. >> versus what target is seeing. >> williams-sonoma is growing market share in the category. the category was weak. williams-sonoma comps were lower down 2% but expected down 4.4%. it wasn't as bad as expected. and i think the execution there and props for laura and how she's managed this in terms of profitability and savings, cost savings, as well as the ability to grow market slayer, especially in pottery barn kids which had the best comps. the quote that we picked out. the quarter was driven by continued improvement in our sales trend, market share gains and strong profit. as we head into the last quarter of the year we are optimistic and confident about our business. so tough category for both, but clearly williams-sonoma is winning and target is having some challenges. the other sort of thing that makes you wonder is target has been doing all of these investments into price, right, cost savings, inflationary

environment, consumer wants value. why is that not resulting in more sales for some of the key categories? that's one of the questions. would look for them to do more of that as we go into the year as consumers are being really choiceful and they have to try to excite them on these product categories which have been softer. >> we mentioned they've under comped walmart for three years straight. discretionary was negative. ticket was down 2. i wonder if some people tried to argue it was a hangover from the culture wars they found themselves wrapped up in a few quarters ago. >> didn't hear that, haven't talked about that. it's hard to break that down in terms of that. i mean i think they would point to better traffic numbers saying that's nonsense and they saw the effect of that a few -- several quarters ago wear off according to these conversations i've been having quarter to quarter. ultimately i think it's just target doesn't get as much benefit from food and grocery, bringing people into walmart, and they're more exposed to categories that are tough right

now and they haven't necessarily figured out how to turn those categories around and excite people. people are in walmart and they're spending more on the discretionary categories. they've added more assortment, walmart has n terms of brands and products and that's worked out for them. >> the stock hit a new low for the session down 21%. i mean this question about margins then, sara, are they going to be able to make it up at some point or is this the new normal? >> some of it were temporary factors. fiddelke was telling me they loaded up on inventory ahead of the port strike because they wanted to be prepared. and that was a cost. they went into holiday season with heavier inventory than expected. so that's a story. ultimately it's going to have to be a reversal in the sales story. there you go. extra cost ahead of the strike. but they need to turn comps around. look, one thing they have going for them is -- and i know jim mentioned this too -- they have an exclusive deal with taylor swift to have products for the holiday, and i'm not kidding,

you know the power of taylor swift, so they're going to have the tortured poet's society full vinyl album. i'm not saying that's going to turn around comps. >> what does vice president harris think about the power of taylor swift. >> not so hot when it comes to her political endorsement but brings in fans -- >> you like a broader judgment of choosing people in life. tight end boyfriend. >> all her songs about her breakups and chose the wrong people. i love travis kelce. maybe that's the one, you know. that was not a judgment on that. it was on past experience. >> making sure. >> she likes to sing about that. lot of breakup songs and love songs. tjx, williams-sonoma having a day, how about tjx. >> it's a giant we point out. >> and comping better than others. >> yes, it is up 3%. >> it's because first part of it is the positioning. people like this stock and all

the analysts like it going in. it's up 25, 26 year-to-date. but the commentary, consumer transactions driving our comp store increases which tells us our values and treasure hunt shopping experience are appealing to a wide range of consumers. the fourth quarter off to a strong start. >> yep. >> here to help us parse through target's numbers and what it means for the broader retail space holiday shopping, jay rodgers kniffen, joins us now. welcome. so what do you do with target stock? >> well, i didn't like it before this. i guess i have to like it a little better now. but they're having a very, very tough time. it would be very hard for me to be all over their stock when i see what's happening. you laid it out well a while ago with all the commentary you had. you isn't say walmart is taking the 100,000 plus household customer. that was their best walmart said that was their best growth. that's target's customer.

so when you've got that going on, it's really hard to see how they get past this. yes, a lot of this is temporary. they brought in extra merchandise. they've had difficulties with discretionary retail and that's starting to turn. you can believe all of those things, but what you keep looking at is saying, wow, when walmart's up mid single digits in store for store sales, somebody just gave up one heck of a lot of market share. and it looks to me like part of that is coming out of target. i don't see how you change that when you're competing against the best retailer in the world right now which is walmart. >> so how much of it is that walmart is driving people in because it is more food focused, grocery focused, staples, and that's where americans are having to prioritize their spending now? >> well, that's a big piece of it. 60% of their -- of walmart's business comes out of that side of the house be it's grocery.

yes, they've got an advantage. you go there every week. that's a disadvantage if you're target and only come there less often because only 20% is grocery and it's not a full grocery shopping experience. so that works against you even when it gets to the other side of the house which is all the other things you need to buy when you go in the store. and when you convince the hundred thousand dollar plus customer you should come here because there's a pandemic and we'll sell it to you online drive through and pick it up and then suddenly they go, hey, this place is okay, we can come back here and shop, and you start turning in numbers like walmart has turned in consistently, month after month, quarter after quarter, since covid and during covid, you're losing market share if you're target. i don't think they get that back. why does that customer turn around and go the other way? way back in '06, i always said target was the best retailer in the world. most fabulous to shop in their stores and wonderful, right. now when i go shopping, and i'm

in target i'm in walmart, walmart looks just as good. so if i'm that customer, don't i just say, well, let's see, it's cheaper here, the selection is better, i can get all my grocery shopping done. this place is all right. and they say that all the time now. online, think about it. walmart's growing twice as fast online in the last report as target and gee, i can't do the math, but five times as fast in store, something like that. >> can't there be an environment where they both do better if the consumer is able -- if there's more relief on inflation? >> well, sure. there's an environment where everybody can do better. but the environment we're in, is if we've got a pretty good consumer right now and you saw the numbers the last time they released it. apparel was pretty good. that's where target is having a real problem. somebody just said, well, you know, they're doing more in basics now because they weren't doing so well with the more

fashion, and i'm like wow, isn't that the last place you want to go if you're target. you have to be fashion if you're going to be competitive. walmart can do the basic stuff anybody ever wants to buy. i just don't see how they get back. walmart has invested so much in technology, too, over the last four years that they're so much better than they used to be. >> so, jan, the in-store experience, it's about investment that walmart has made and/or is it about a failure of target to make enough investment in terms of stores, in store? >> it's probably both of those. clearly walmart is doing a much better job in the store. target is doing a etty decent job. the difference used to be noticeable when you were shopping and the customer would tell us that when the customer came out. now you don't get that feeling anymore. it's really a good shopping experience in walmart. and you get the feeling that everything you want to do in the store and it's cheaper. so you have a hard time being competitive when somebody's

doing what they do that well and then walmart has branched out, right. they've got marketplace doing well for them. they've got advertising doing really well for them and growing. so that adds to their gross margin and bottom line and growth rate in a company that's executing perfectly at the store level. that's a tough competitor. >> really quick -- >> i think business is pretty decent out there. i think we're getting a post-election bounce and coming back to our discretionary and yet target is still struggling. >> really quick in a word is the answer for target to do more food and grocery as a percentage of sales or less? >> i thought when they got into grocery it was a bad idea. let's go into a grocery in a big way and say go directly at our biggest competitor who is much better at this than we'll be. i never understood when they started it. i don't think that's the answer. i think the answer is, to be much more target than they are

today, back like when they were in '06 where the customer felt this was a better experience, better stuff, faster, interesting things to do in the store, you know. that's what target was and i don't think they're there now. they're more like walmart than they were then. i don't think that's a winning formula when the other guy happens to be flawlessly executing today. >> and on better prices which is what americans need right now i think is the bottom line. >> and with twice as many stores. you can't walk out of a target and not see a walmart. >> all right. jan, we got to leave it there. thank you very much. for talking us through the target-walmart battle. as we head to break our road map for the hour. nvidia front and center for the market as it gears up to report results after the bell. >> our parent company comcast is planning to spin off almost all of its cable networks that

includes the one you're watching right now as well as msnbc. what it means for investors and the overall media landscape. cnbc unveiling its list of the most valuable nhl hockey teams. some of these numbers may surprise you. we'll get to that after "squawk on the street" continues after this break.

welcome back to "squawk on the street." take a look at shares of our parent company doing virtually nothing this morning. we did get the announcement,

some of us have been waiting for for a few weeks, moving forward with the spinoff of almost all of its cable networks is comcast. nbc universal carving -- i don't know what you want to call it -- spinning off really, all of the cable networks other than bravo which is staying. too closely associated perhaps with peacock and so nbc universal wants to spin off and that will probably be at least a year or so from now. will not include -- it will include cnbc, msnbc, it will not include bravo, the theme parks, peacock as well. so that will still be a part of comcast, key business of which is providing broadband to people all over this country. as for the spinoff there is a belief perhaps that it will benefit from our first mover advantage, perhaps putting it in a better position to consolidate other cable networks that are currently out there.

it also will conceivably free up the company to pursue avenues for growth that have otherwise, perhaps, not been available given the continued decline overall of linear cable networks and being part of a larger hole in terms of trying to fund various growth initiatives at that, whether it be peacock or even things such as the nba on nbc which is coming in 2025. sara, you know, there's two sides to this. one, obviously, you've got a decline in linear networks, a question whether this new company will have the heft to have left with the distributors to get the subfees that are currently in place or even potentially increase them over time. at the same time you've got the belief that you will be able to use your own free cash flow for your own good to a certain extent, as this much smaller

company. when i say smaller we're talking perhaps around $2 billion in ebitda. debt load to be determined. but comcast continues to use the words well capitalized, which would seem to indicate perhaps a one on one leverage ratio, no more than perhaps $2 billion in debt. to be determined. my understanding is it will have a dividend which potentially will be attractive to shareholders. but it will deliver a lot of free cash flow. so a year from now we are going to be -- >> that's our future. >> there are dissynergies including the msnbc in particular and nbc news are so closely aligned how can you create agreements part of that relationship. >> licensing agreements with the cable networks and the company for peacock. right. that's right >> that's going to be one of the complicated -- i'm looking at comcast's stock unchanged right now. i would think part of the goal is for that valuation to go up

as investors value the broadband business, which is the -- in the better business. >> yes. >> 12 times earnings. i wonder what's going to happen there. >> the -- perhaps the expectation, remember this was announced on a comcast conference call, stock did move up on the announcement. it hasn't done much since. it's off its recent highs. you know, broadband is a swa challenged business. it's not as though it's growing at this point. you can have an argument as to what the multiple should be, but the idea by spinning this because you've been getting discounted multiples as a result of the continued decline, where will it trade? maybe five times ebitda, carl, that $2 billion. maybe a $10 billion market value. it's a spinoff if you're a comcast shareholder you will get a ratio of some kind and make a decision to own it or sell it. it will take a while to establish its shareholder base. >> spin co, not newco.

>> cnbc and friends. >> i like that. >> as long as we're in the title. >> meanwhile here, almost 1% declines on the s&p. 1% drop on the nasdaq. we'll watch nvidia tonight. the path to a $4 trillion market cap begins today, at least that's according to our next guest. we'll talk about why and what tcwhen the company does report in a couple hours.

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nvidia is going to be reporting earnings after the bell today. our next guest out with a new note saying the company's path to a $4 trillion market capitalization begins today with, quote, another drop the mic performance. he also thinks tech stocks will rally into year end. if you haven't figured it out dan i have, wedbush global head of technology research, buy rating on nvidia. why is ate drop the mic quarter? >> i think right now demand and supply is 15 to 1. they're the only game in town, and from all of our trips we talk about on the show it is just the beginning of this ai revolution and i think as you

start to see with blackwell, street still underestimating what this is going to do as the hyper scalers start to build out that ai capex at the top of that mountain, it's the godfather of ai jensen and nvidia and tonight is going to be a drop the mic, get the pop corn out quarter. >> from the numbers reported or the commentary around guidance? >> i think especially guidance because blackwell, when you look -- we could be looking at trajectory 20, 25, $30 billion a year, right. if you look the street modelled this, underestimated in terms of where this goes in the next year or two. when could this get to $200 billion of annual revenue. they continue to underestimate what nvidia and ai spending tidal wave is going to do not just for big tech but with nvidia now. when jensen speaks, everyone

listens. it shows what's coming. >> we know we have a sense of what the hyper scalers, main customers are going to spend. they've told us in terms of their commentary. why is this a mystery. >> whether blackwell, worries about technologies, over ordering, it's about two and two model, $2 billion beat $2 billion in terms of guidance raise. when you trajectory this out, first you talk about dollar earnings, could be 5, $6 earnings but it also just shows a broader tech. still, 930, 10 p.m. in the ai party that i think goes to 4:00 a.m. i think big tech, we're looking at the nasdaq not just 20,000 in the next few years, especially with trump and what i view deregulation, this is bullish for the tech trade. >> you're referring to the average revenue beat last few quarters is about $2 billion. some argue it might not be as much this time if that happens. would the price get punished?

i mean it could a little, but i think two and two in terms of the model, but it's also about blackwell in terms of what that could look like over the next few quarters. go back to three months ago and the initial reaction. stock is down. bears all come out of hibernation mode and their spread sheets. this is up 17% since the watch party. as we continue to head in, i think we talk about $4 trillion, over the next 12, 18 months, besides them and apple and others, we'll talk about $5 trillion market caps in tech as the fourth industrial revolution plays out. >> you said nobody is close in terms of competition. does that dynamic change in 2025? >> amd, obviously, trying to sort of get around the corner. others will start to ultimately -- there's some private companies going to see a lot of funding in terms of trying to find who could be in this race. they continue to be in the left lane going 90 miles an hour. everyone else in a minivan going

35 miles an hour. that's why -- when i look at the stock, this is not expensive. it just continues to be my view that the street underestimates where it can go and growth can go. that's why tonight i think it's another indication where the ai spending trend is. >> we'll be watching. obviously, the largest market cap company on the planet after the bell. thank you. dan ives. let's get a news update with silvana henao. hi. >> hey, carl, good morning to you. the u.s. embassy in ukraine's capital is closed after officials received information of a potential significant air attack on kyiv. it comes after ukraine struck an arms depot inside russia with u.s.-supplied long-range missiles marking a shift in u.s. policy. meanwhile the biden administration said today it would supply ukraine with anti-mines to slow russia's battlefield progress. the south carolina mother convicted of killing her two young sons in 1994 asking a

parole board for her freedom today. susan smith is serving a life sentence for strapping the boys in their seats and rolling her car into a lake in 1994. her ex-husband and father of the children will also argue today that she remain incarcerated. a major storm called a bomb cyclone killed one person in the northwest as it brought hurricane-force winds and heavy rain that downed trees and knocked out power to more than half a million people. up to 16 inches of rain are expected in northern california and northwest oregon into friday with the intensity of the storm expected to peak today. sara, i'll send it back to you. >> thank you. president-elect trump reportedly narrowing down the field of candidates for treasury secretary. while naming a few new picks. what investors need to know. we're back in a moment.

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welcome back to "squawk on the street." president-elect trump naming more cabinet picks but no treasury secretary. meghan meghan joins us now with the latest from west palm. >> good morning from west palm where we are actually getting close to the end of these cabinet personnel picks. three new names becoming official just in the last 24 hours. most notably howard lutnick of cantor fitzgerald headed to become the commerce secretary. but we also learned that linda mcmahon, who co-chairs the transition with lutnick will be headed to lead the education department, putting her atop the agency that trump has pledged to abolish, and then we also know that celebrity doctor and tv personality dr. mehmet oz will be leading the centers for medicare and medicaid working with robert f. kennedy jr. if both are confirmed. a couple flags on lutnick. in addition to leading the

department, trump says he will handle the tariff agenda, responsibilities for the office of the u.s. trade representative. ustr has been a cabinet level agency on its own housed within the white house and the big question here for me based on folks i'm togging to whether congress is going to be okay with this, if it does move to be within commerce. powerful committees could lose jurisdiction over that agency. it's another example of trump trying to push this republican congress and seeing how far he can push them before they start to assert themselves a little bit more. and then finally on lutnick this, of course, takes him out of the running for treasury secretary as the game of thrones style sweepstakes continues. down to four names familiar at this point on that short list that we know of. we hear that bill hagerty, spent the full day with trump at the spacex launch, that went well, sort of an audition for treasury secretary, but also reporting this morning that kevin warsh

and mark rowan of apollo are in palm beach meeting with the president at mar-a-lago to talk about treasury. a lot of movement on that front. we are expecting we could get news today, but seems like by the end of the week. guys? >> meghan, we're watching treasury closely, but let me come back to tariffs and trade so important for investors. you indicated previously you followed robert lighthizer closely. what role is he going to play if lutnick has oversight of what you indicated? >> it's a really interesting question what's going on with bob lighthizer right now. he was the workhorse in the first trump term. he is the who spent navigating the trade law and knows how to implement the tariffs. if ustr moves within, would lighthizer want to return to that role if that happens or i hear lighthizer's staffers are in the mix working on this closely too, maybe one of them

might lead ustr and lighthizer gets a bigger position within the white house. that's where the scuttlebutt is right now, that lighthizer a close right-hand of the president, that maybe he then gets the sort of more workhorse position in the white house, that lutnick becomes the face of it, talks with congress, talks with the markets while lighthizer is talking to trump. we don't know yet. it's one possibility. >> it does make sense having interviewed lutnick so many times on this show and others on cnbc. he's been a proponent of tariffs and a dealmaker and seen that in his own experience. meghan, keep us posted down there from palm beach. appreciate it. >> you bet. goldman sachs hosting a big tech conference in las vegas bringing together top leaders to discuss innovations around ai and software. our leslie picker is there live with a big interview in the next hour. good morning, leslie. >> hey good morning sara. that's right in about a half hour we will be sitting down with goldman sachs chairman and

ceo david solomon live here in las vegas. it's solomon's first roadcast interview since the election and those results, of course, boosting goldman's stock price making it the best performer of the big six u.s. banks. and we're at the firm's private innovative companies conference with a slew of pre-ipo candidates. we will be digging into his expectations for a capital markets revival, the potential for deregulation, as well as a bit of ai. tune in next hour on "money movers." >> leslie, can't wait for that. leslie picker. we'll see you next hour. still to come this hour, cnbc's out with its first ever nhl team valuations. find out where your team stacks up next. we'll get utah jazz and hockey ensqwkn h'ta an smits ke wh "ua othe street" is back in a moment. answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know that's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering "seven things every medicare

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♪ ♪ [ gasps ] you're green. i am. oh! ahh!! [ laughter ] don't tell me you have nothing to wear? you've been glinda-fied. the wonderful wizard of oz, summons you to the emerald city. think of what we could do... together. cnbc sport is out with its list of the most valuable nhl

teams. find it right now on cnbc.com. the toronto maple leafs snagging the top spot worth $4 billion. the rangers, canadiens and boston bruins round out the top five. joining us is michael, the man behind all of our valuations. nhl, i mean, i'm curious as to how they've moved up through the years given the success, so to speak, of the league? >> yeah. they've moved up quite a bit because their revenue has been so strong, david. last year they set a record for hockey-related revenue, $6.3 billion, almost 9% more than the previous year. their current tv deal in the u.s., more than three times bigger than its last tv deal. their next tv deal in canada, likely will see a similar increase. last year record ticket revenue, record sponsorship revenue. very strong business right now. >> that spread between the number one and the least is that

wide historically speaking? >> i've got to tell you one reason it's so wide in hockey, wider than other sports, hockey relies so much on local revenue. that's 80% of your revenue. tickets arena sponsorships, local tv. in the nfl, the flip side, it's only about 25% of your revenue is local. huge difference there. >> what about ownership? what have we seen in terms of -- it's been hot. billionaires have gotten in like they have in other teams. >> absolutely. they see this, right. so we're looking at the tampa bay lightening went for a record $1.8 billion. prior to that, utah, they were bought for $1.2 billion. so we're seeing the rise in nhl valuations which reflects the increase in revenue and another thing, the nhl has going for it, a salary cap. hard salary cap. harder than the other three north american sports. who doesn't want to run a business where you can cap your employee pay. >> what's the key to toronto? is it what you're saying, local

tv and interest, obviously, >> biggest city in canada. where hockey is religion. they're approaching $100 million in local sponsorship revenue. the most in the nhl. >> we were looking of pictures of utah and speaking of, joining us is ryan smith owner of the nhl's newest franchise utah hockey club, owns the utah jazz, hoping to turn utah into a major sports destination. ryan, it's great to talk to you. i got to imagine you've got a keen interest in this list. >> a little bit. good to be back, carl. hope you're well, man. >> you too. what does it say about your efforts to dive into not just this league, but multiple sports leagues in utah? >> i mean, look, there's nothing -- i mean i'm normally here for tech. it's pretty weird to be back here for sports. but look, there's nothing that brings people together like sports. if you look at hockey and the momentum it's having, its best years are ahead of it.

also, just live events in general. i mean we're starting to see a massive trend, whether it's music, f1, nfl, college football, nba, and hockey, it's not uncommon that those who frequent these events can't stop talking about how hockey is just different and we're seeing that here in utah. >> hey, ryan, michael here, great to see you again. i was curious, when you were bringing the team over to utah and thinking about that, did you look at all the success the nhl had with its last two expansion teams in las vegas and seattle as sort of like maybe some benchmarking on how to make hockey work in utah? >> yeah. it's an interesting process because it's never really been done and there's not really a playbook in each individual market. my wife is from las vegas and if you would have told me that the knights would have come in and just painted the town in their

branding and everywhere you go it's the vegas knights, everyone would have said you were crazy. it's similar for utah. there's a massive bet that you have to make because it hasn't been done if your town, but watching how -- especially a market like vegas that typically isn't a winter sports market, right next door to us, we're familiar, there's a lot of crossover in those two states, it gave us a lot of confidence, but moving that team up in such a quick time from arizona, there wasn't a playbook. it was just really a bet. >> how important, ryan, is the ability to create mixed use real estate as well? we see that become bigger in sports for all the leagues really, and i know that you've been looking at some of that for utah to extend the brand and be able to monetize the brand further. >> yeah. i mean you do it for a couple different reasons. i mean, in real estate, tenants

are everything and there's not an anchor tenant that's like a sports team. i think the question becomes like what are you doing it for. for us in salt lake, we've got a pretty big project to really help create the experience, which i think we do a great job inside the arena, but how do we elongate that experience into the community and there's a lot to offer, especially with two teams that are going every other night. in february we have 11 nights in a row in utah where every other night is basketball, hockey. we haven't seen that before. people coming in we've also tapped ia completely different demographic. i think 60% of our fans hadn't been to an event for hockey. our hockey fans had not been to an event in the delta center in the last any years. so we've really broadened who our target demographic is and then we've had such a tech

insertion here, we're a top three team in the country, in the growth in utah. you've got a lot of people saying, hey, we're going to sit down as a family and we're all going too utah hockey and kind of starting at the ground floor which is something that people can get excited about. >> i know it has engendered huge response from salt lake especially which is a demographically pretty young town. ryan, it's great to talk to you. seeing more of you on tv in the near future. thanks. >> all right. thanks, man. >> and michael on set, catch a lot more of ryan on cnbc's latest cities of success salt lake city show. the prime time special looks at salt lake's growth in sports in technology as ryan was saying, finance and real estate. here's a quick peek at some of the shows how profile lineup. >> this state is different and it's special. not only is it fast growing, call it the nvidia of states. >> salt lake has been a home run for goldman sachs. >> adobe was the first company

to really set down roots in this part of utah. >> make sure you catch cities of success salt lake city airing december 10th, 10:00 p.m. eastern time, right here on cnbc. all right. watching the market. number of stocks hitting new 52-week highs and lows. target on the low end, but a few consumer names avoiding the carnage. williams-sonoma we mentioned, good quarter, netflix, live nation, carnival hitting fresh highs. on the setup of nvidia tonight in just a moment. stay with us.

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checking in on stocks as we close out the hour. the s&p down about .5% ahead of the make or break report from nvidia. nasdaq hanging on to gains for the week. bob pisani, here at post nine with more on the setup for nvidia and brdser tech. >> as goes nvidia so goes tech and the larger markets. we're trying to find a footing here for the markets. we were weak at the open and bounced off of the lows. take a look at the movers, semis including nvidia are down ahead of nvidia's earnings. tesla and amazon are down and consumer discretionary, target new low there weighing down

consumer staples sector in general. neglected groups are trying to stage a modest rally. health care is finally bouncing a bit. it's had a rough time in the last couple months. united health and merck are up and energy has been getting a modest bid in recent days, particularly the exploration of production space, so devin and apa are up. speculative tech like ark innovation has been strong since the election. banks have been strong and holding up well. some parts of the energy complex like exploration production have been higher and mag seven has been well, etf, mag seven etf was at a new high last week. on the other side other parts are deeply oversold. i have been talking about consumer staples, coke, kraft heinz lower and health care and in particular big pharma. while some of the weakness is election related, they have been trending down since well before the election. now, as i mentioned, haves and have nots. the bulls are not happy because the momentum has been brown kend

the momentum not as positive. the bears are not happy because the market has not given up. the s&p 500 closed 6001 on november 11th. we're only 2% below that. the bulls citing numerous tailwinds including momentum, seasonality factor, earnings trajectory is improving. benefis from deregulation all true. the bears have a list, complaining about high valuations, the strong economy reducing chances for rate cuts, stickier bond yields and higher dollar, tariffs and geopolitics with russia and ukraine factoring in. there's headwinds for the markets right now. for nvidia it is vole tile around earnings and moves 5 to 8% around earnings. as go nvidia so goes the tech etf. nvidia is far and away the largest holding in the three major tech etfs. there are billions of dollars here. it's a quarter of the semiconductor etf, smh.

it's 10% of the nasdaq 100 and 15% of the s&p tech index. can you imagine, though, trying to be a strategist writing your 2025 report right now? so we had a few brave ones. kostin 6500. mike wilson has 6500. but with all of these shifting sands it's almost impossible to get anything out at this point and in the next week or two we'll see a couple dozen more coming out with estimates. the few who have come out all around 6500, that's 10% above the s&p right now and that's the typical gain on the s&p so there's basically everybody sort of sticking right around 6500 right now. that's what i call like a consensus safe consensus bet. >> wells just now, want to guess the number? >> 65. >> exactly. >> the trump trade to fold in here too. you mentioned health care is bouncing. i want to point out the managed care stocks today, the insurance stocks, every day we get a new cabinet pick or new ppointment

from president-elect trump. this is the dr. oz. his commentary in the past, he's the pick to lead cms center for medicare and medicaid, and he has had commentary being pro medicare expansion, maybe why the boost there. this is a very bureaucratic agency, though, and i wonder with d.o.g.e., jared made this move from jefferies because he thinks it's going to be more complicate blood. >> government efficiency. >> cuts in the health care system to come as well. >> bob, thank you. >> thank you. >> bob pisani. nvidia shares, by the way, down less than 1% after a significant rally yesterday and as you know we'll be keeping a close eye on earnings and on this mart rahthe.dke in the after hours, bro. dad, is mommy a “finance bro?” she switched careers to make money for your weddings. ooh! penny stocks are blowing up. sweetie, grab your piggy bank, we're going all in. let me ask you. for your wedding, do you want a gazebo and a river? uh, i don't... what's a gazebo? something that your mother always wanted and never got.

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policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. . good wednesday morning. welcome to "money movers." i'm carl quintanilla with. sara eisen live at post 9 of the new york stock exchange. goldman sachs david solomon, his first interview under a new administration. stock is up double digits this month. target shares plunging as the company cuts guidance. the worst news behind the stock, we'll discuss. then it may be the most

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