and perspective on all of it. we'll see where this heads. a quick final check on the markets. green on the screen, the dow up 140 points. nasdaq looking to open up 94 points higher and crypto. we are closing in on 100,000. up close to 98,000 before. before, and we will see where it ends later today or at least what it will be tomorrow. join us then. "squawk on the street" begins right now. ♪ good thursday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber at post nine of the new york stock exchange. futures, pretty steady here as nvidia goes green premarket on another solid quarter, another $2 billion revenue beat. jobless claims mean while near a six-month low. our road map begins with nvidia's beat and optimistic outlook for a.i. chip demand. the stock does erase an earlier

loss. also, elon musk and vivek ramaswamy out with a doge plan to reform government and cut federal spending. the department of justice has officially requested a federal judge take action against google by forcing it to sell its chrome browser. this, of course, part of the government's antitrust case against the company. let's get right to nvidia. moving higher after beating on both the top and bottom line, also nearly doubling sales year on year yesterday on the earnings call, jensen huang did reiterate the strong demand for a.i. >> the age of a.i. is in full steam. jaefrt generative a.i. is not just a new technology but a new industry, a new industrial revolution that can create -- that can create a multi-trillion dollar a.i. industry. demand for hopper and

anticipation for blackwell, which is now in full production, are incredible. >> some of the hopper guidance was surprisingly good. >> this is one of the situations where whatever you can get from them, you'll take. that can be very stark because you may not be able to get the first-ranked stuff. i think that there are multiple customers -- look, i'm going to step back from this a second. i've never seen anything like this. there are multiple customers who would buy everything they have. when i say everything they have, i don't mean, like, hey, you know -- i mean, like, i will take everything you have. and the customers that we're talking about are customers that we all know, and they are not doing it in order to be able to say because the other guy may have it. there's going to be a winner take all, loser take none aspect. i pay you $40,000, i'll make

$200,000, and david, when i say, i've never seen anything like it, what i mean is that this is a different order of company that we have ever seen in our years together, because it's really reinventing -- it's creating a whole new industry. and in order to understand it, you have to do things that you have never done before, but for instance, i put in -- jensen says something that's rather -- i don't mean to go on too long, but jensen's talking about something that he -- he likes a google product, that he just -- he's just constantly on. i mean, good example -- >> same thing that benioff said the other day. >> i talked to marc about it. absolutely. and what you do is you input -- tell me what's so great about this conference call. and you know, here it is. i've got it. >> tell me. >> this is it. i just -- all we asked -- this is jeff marks. we put in, give us the highlights. this is the product that jensen said he loves to talk to. >> you used the google product to actually go over the conference call. >> he was using the living

daylights out of it. >> thank you, carl. i use the living daylights out of it, so i did it, and i got five pages of just the quick distillation. if someone said, pick your best five pages. i don't mean to wax too authoritative -- i will say this. when the stock was at $141 this morning, i was going to town on whatever they call now, saying, what are you, clowns? it's just short-selling clowns because this thing is not anything i've ever seen. >> and, of course, the -- what you were using from google is generating what it does on -- >> yeah. it's a hall of mirrors. but when i spoke to the company after for about a half hour, and what they're talking about -- first of all, the story that came out this weekend about burning too hot, they used some words that i was surprised. they said, it's a lie. now, that's a charge. that's where you go to jail, when you lie about financials. journalists, whatever. it's a lie.

i would not want to commit a lie against this company. there was no heat issue. >> you don't believe that, because they deny it, so you believe them, and you don't -- i mean, i -- >> even you said there are probably people within the company talking to the information. >> that's what they do. if you go to a -- to a reseller, a wrapper, a packager, of which there are three, super micro and dell and hpe, they did not report any overheating. so, it's entirely possible that you bought something, you got something, and you souped it up and overheated it. >> i see. >> but david, it's a serious charge to say that story was a lie and they couldn't do anything about it because they were on quiet. i do not want to be affiliated with a lie, and anyone else who's affiliated with it, i think, is suspect. >> yeah, no, you never feel good as a journalist when a company calls you out in that way, that's for sure. something you want to avoid. let's get back to the actual quarter itself and what it means for the future.

$37.5 billion in revenues in terms of guidance for fiscal fourth quarter of '25. i mean, let's just talk a little math here. obviously, yes, we've never seen anything like it. what did they do? they're on a run rate of over $100 billion. 94%, excuse me, increase. first time in five quarters they didn't have more than a triple-digit increase in revenue growth. >> it was disappointing. there were clowns -- i don't mean that. i mean chowderheads. >> your point is that demand for blackwell is undiminished, it will take this product throughout its ramp, there will be endless demand for it. >> they're going to get back on every year of reuben. >> reuben's next? >> yeah, from philly. reuben. >> got it. >> but i -- when i say -- there's a lot of stories last night. i just want to dispel -- i want to tell people why that stock got to $141, because there's a lot of people at home thinking, how come it's at $148? the story at $141, the stories

at 3:00 a.m., 4:00 a.m., 5:00 a.m., were how they missed guidance, but there was no guidance, so how did they miss it? >> to the degree there was hair on the quarter, people are looking at networking down. >> it was a timing glitch. right back up. ben reitzes will tell you that at 10:05 today. ben asked the question about longer term guidance. i love ben. that was a question not as well received by colette kress as i thought it would be. she's the cfo. in terms of being intimidated by people -- >> yes. >> -- i always feel like i'm back in fourth grade when she gave me a "b" and my father told me i was a disgrace. changed the whole course of my life. >> explains a lot. you've been trying to prove her wrong ever since. >> yeah, exactly. >> you've almost done it, jim. you're almost there. >> my father still wouldn't approve, wherever the hell he is. ten years ago, he died. he's still with me in my mind. like, jim, you didn't know how to speak to colette kress. you call her back and apologize. >> back to the cfo of nvidia.

>> sorry. indeed i digress. >> meanwhile, jim -- >> $300 an hour for the psychoanalysis, what do i get for it? ends at 10:05. >> you get what you pay for. >> meanwhile, some interesting pieces on the tape about jensen's world tour. we saw a piece of it in japan and the notion that he is looking to dig into that sovereign story and rely less on the hyperscalers. >> the dead poet's society, whatever thing that taylor swift did that was supposed to help target, this was much better. this is a predilection that jensen has. he doesn't want jingoism or xenophobia. the problem is, how do you divvy up, when mark zuckerberg says, i need meta a.i. the best? what do you say to andy jassy, ceo of amazon, when he says, listen, i spent 8 bil on this alexa and she's not conversational, and you say, listen, you give me -- when you

say, like, have you ever tried to say, i want gershwin's symphony? or "american in paris"? it says it has to charge you prt movie, "american in paris." that's over. if you want to ask for beethoven's piano concertos, and they start playing the sonatas -- >> you've used this example a lot. >> it doesn't know jupiter from mars, the damn thing. but now, it will ask you. conversational. and by the way, when you come down, it will say, jim, you have an 8:00 and then a 9:00. don't forget your psychoanalysis with david, and you can -- what's the matter? but it's conversational. it's back and forth. and that's what jensen's talking about. that's why one of the things we talk about, inning one, we don't have conversational back-and-forth right now with alexa. she's disgusting. >> that's kind of rude. >> i mean stupid. i don't want to get too personal. >> that will change. >> that's what happens. the whole industry now is based on cpus and coding. one of the great moments was

they have things that they're going to make it so that lawyers -- not going to need them. >> we don't need the lawyers? >> you don't need anybody between a first-year and a third-year associate. those people cost $200,000. >> yeah, but you're going to need them when they get older, so you got to keep them to go through the first, second, and third years. >> i'll let you go with that somewhat. new industry of a.i. factories, manufacturing digital intelligence, industrial revolution. these are things that are not constrained by the price to earnings multiple. i feel like an idiot. price to earnings multiple. i'm small. tv got small. i'm here -- digital marketing intelligence, like riders. how about harvey? digital artist intelligence. run wray. these things are -- these are, like, these are -- but he says they're not disrupters, they're additive, but when i read these, people in professions read this one paragraph -- >> nobody has any idea what you're telling them. you're just reading bizarre names. harvey.

>> like the play with jimmy stewart. you're not there. >> no, i'm not on you with that one. >> "harvey"? come on. you know "harvey." jimmy stewart. it's older than we are. >> his cultural knowledge is really -- >> i think i have decent cultural knowledge. i mean, no, i can't compete with you or with you. that is true. >> with carl -- no one competes with carl. no one. >> all of this kind of ties into some of the fed commentary we got yesterday regarding a.i. and productivity. yardeni, now it's a roaring '30s thesis from ed. >> wasn't all that roaring to my parents. i will say that when i read the op-ed piece -- >> roaring '30s? >> the doge op-ed piece from on high, they are saying that right now, we are praying to the golden calf. >> you want me to do edward g. robinson? >> yes, i want you to do edward g. robinson. one of the finest art

collections ever and gave it to the israeli museum. pretty dynamite. go ahead. these guys are saying -- >> where is your god now, elon? there you go. you like that. >> that op-ed is so based on the chevron decision, not the chevron quarter, which was pretty damn good, but the chevron decision was basically eviscerated agencies. i've been waiting for someone to take advantage of that. this was like, okay, we're allowed to eviscerate agencies? the constitution backs us? >> there's a big piece in "time" which basically compares trump to a corporate raider, engaging in a hostile takeover, infusing new technologies into government, slashing costs, removing the people. >> and what -- the line that they use, we all think that civil service is protected, but they say a reduction in force is not protected. so, if you want to have a reduction in force for everybody who doesn't work at the office, they're saying that could be constitutional. >> yeah.

>> well, that's radical. >> well, they're citing any number of different things in the op-ed. we're talking about, obviously, elon musk and vivek ramaswamy's op-ed in the "journal," in which they do detail some of their plans for that new department of government efficiency, and they do talk about relying on a 1974 -- >> the impoundment control act. >> we want to go nixon? i'll go nixon. >> and generally talking about, right, restructuring many things and all of the rules that have taken place that they claim are undemocratic because they were not voted by congress but simply by what they would call sort of bureaucrats, so to speak. we'll see whether they're successful in reaching that deadline of july 4, '26 in terms of really cutting both the regulations and the people and the actual expenditure, carl, that they're talking about, as much as, what, half a trillion

dollars, i believe. >> right. meanwhile, big note this week saying, be careful on some of these grandiose pledges, they argue. if you were to wipe out the department of education, that's 4,000 jobs. total federal workforce is 2.3 million. how much can you operate around the edges? >> the usual hack, the corporate -- the corporation for public broadcasting has been a pinata for years. >> it's that. it's international aid, and it's planned parenthood, the $300 million a year. >> they referenced the military budget. >> they did, the $800 billion-plus. and of course there was the -- which we've seen as a strategy before, come back to work, and santa fe you if you don't want to come back to work five days a week, maybe you don't want to work here. we talked about that a lot when we spoke with chair gensler in front of his fireplace, in terms of the s.e.c. staff, but they do talk about requiring five days a

week, and it is one way to make sure that they -- that they come back. >> david, they own the supreme court. you forgot. >> 6-3. yeah. >> it's a subsidiary of the executive branch. >> the chevron being overturned. >> i got to get mike wirth on the phone. >> our viewers may recall a conversation i had with elon musk. it was the first time he talked about what he felt was the moral imperative of getting people back to work and certainly that will seem to be in play here as well in his new volunteer efforts for the federal government. take a listen. >> i'm a big believer that people need to -- are more productive when they're in-person. and really, man, i -- the whole sort of work from home thing, it's like, i think it's -- look, there are some exceptions, but i kind of think that the whole notion of work-from-home is a bit like, you know, the fake marie antoinette quote, "let

them eat cake." really? you're going to work from home and make everyone else come work in the factory? you're going to make the people who make your food that gets delivered, they can't work from home? the people that come fix your house, they can't work from home? but you can? does that seem morally right? that's messed up. >> he gets to put that in action, perhaps, on the largest workforce there is. >> he's able to do it. the law is pretty clear that if you want to do a reduction in force because you think there's not enough money at your agency, then he can do it. he can say that agency does not have enough money, and yet you still have all these employees who are going to do a riff, we're going to figure out which employees do the best. they can do a legal riff. no one's done it, but it's legal. never had this problem with work from home. >> there are reports that president-elect trump on his first day has a raft of executive orders ready to go as well, some of which may be aimed

at similar issues. >> meanwhile, take a look at the premarket here as jim said. been improving through the course of the morning. we'll get to deere and bj and jack and especially palo alto and snow this morning. going to open up 25% when ntueawk onhetrt" t see coins.

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can't wait to get jim's take on snow this morning. take a look at the premarket gain. double beat raises guide. this multiyear partnership with anthropic, nearly a 25% up open. we'll see what happens when we get the opening bell. am'smada" tea afr break.

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we're delivering exceptional operating earnings, because we're focused on our customer service. and that customer service has always been world-class, and by focusing on it, we build up that loyalty with our customers, and they trust us. >> all right. that's going to get us to our "mad dash." of course, that was laura alber, a guest on "mad money" last night. you want to talk a little more williams sonoma? >> yeah, well, i think she's offering a premium product at a value price. it was an extraordinary conference call. there were a lot of people who didn't understand her model.

it's not digital-only, it's digital-first, so it has greater margins. the williams-sonoma physical stores are looking great and those numbers are good. the business side, ritz carlton, winning those kinds of accounts where she's actually -- this is what i always felt that martha stewart could do, the next us ration iteration. it's not just the home office anymore. i thought this quarter was a tour de force. she broke away from the rest of the industry, very similar to ralph lauren, meaning no one can come after her. she's really carved out the area. wayfair can't come after her. rh can't come after her because of the price point. she owns a gigantic swath of not just furniture but of furnishings. it was really impressive call. and a lot of it's also blocking -- great customer service. she's building supply chain, getting it right, trying to diversify away from china, obviously, and that's a really nice return. and there's no one in her

category that has it. >> i know. >> it's very impressive. >> it is reflective, it would seem, of a decent consumer, right? i know your numbers were not that great, but obviously, they were well above expectations. >> i felt as she actually indicated, both on the show and in the conference call, she doesn't see the weak consumer. >> right. >> the consumer's not weak when it comes to williams-sonoma. intersection analysis, right? >> very much so. >> interesting psychoanalysis. >> always. >> yes. >> with you. >> yes. >> there's so many -- >> do you go to quarter -- do you go to five of ten when you analyze -- when you help me, or at ten, do you stop? >> we have to stop at the appointed time. >> humana may not cover you. >> you get 55 minutes with me, and that's all you get, okay? then we come back the next day and the next, but we don't make a lot of progress. >> ben from bristol is going to help me. >> great. we got an opening bell as well. you can catch us any time and anywhere by listening to, follow e quk t see : opening bell" podcast.

. >> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing.

the doj officially now going after google, calling for the company to divest its chrome browser following that ruling back in august that google holds a monopoly in the search market. couple pieces last 24 hours. one sort of putting a -- a number on it, a price. others arguing that it would be fine without it. >> ell, look, i think that this is not microsoft doj where they had a browser that they had to -- that was very important to them, and it kind of hurt their earnings for a year. i think there's more to it than that. i think -- i'm not super the judge who ruled on the apple decision is so keen to just basically let the government take over a company. david, i think that it's one thing to be able to point to a contract that they think is -- that the justice department thinks is not right. it's another thing to just say, you know what, we don't like how these guys act, so we're going to take it to them. even teddy roosevelt didn't do that. >> also distributions for ten years to apple, right? that's an important component of

this. it's going to be years. who knows what will happen? but it's a lot of money. >> no, no, look, there's no doubt. look, i wanted to scale back, and did scale back some alphabet after that decision with my travel trust, because i knew that jonathan kanter, who was in charge of antitrust, was -- meant business. he wanted to -- i mean, jonathan kanter, if you want to use a literary analogy, "misery." jonathan kanter wanted to be kathy bates, who apparently is in some tv show now. what's that all about? she wanted to hobble james caan, which, by the way, she was able to. >> tough scene to watch every time. let's get the opening bell. at the big board, it is blackrock, celebrating ishares innovative and tech etf, at the nasdaq, it's the mets, and the amazing mets foundation.

mets alumni john franco, mr. and mrs. met, the amazing mets foundation donated a record 8,500 turkeys to those in need during friday's mets-giving day. nobody knows the team as well as david. >> on that one, i think i can take both of you guys, but there's not much else. we'll see if we get soto. that's the big thing now, of course, whether steve cohen will get soto. did you guys know that there is a 15-year deduction -- when you buy a sports team, you can deduct player salary, all those elements of it that don't have to do with the specific income? it really enables you, if you have high income, like a david tepper, every year, huge potential deductions over 15 years. >> he deserves it. david tepper deserves it. the panthers are turning around now. david, speaking of the tax code, what happens after two years with that spinoff that you're close to?

>> which one are you talking about? >> the one that you work at. >> yeah. intangible assets is what i was looking for. that's the word i was trying to get there. >> what happens to that one? >> the spinoff of our said company? is that what you're discussing? >> yeah, why -- >> and what is the question, mr. cramer? >> i thought that you might be able to talk about the tax consequences of someone like apollo buying the company after two years, two and a half years. >> i think that in this case of many spinoffs, including our own, it would -- there is -- the idea of selling the cable companies, for example, that comcast is now grouping together to spin off, as we reported yesterday, the basis is quite low, and so it's unclear whether there would be any tax efficiency in selling them immediately. because you would garner a potentially significant capital gain. spin them off for two years, give them a shot to really try to grow and figure out the new environment, and if, for some reason, that's not going the way you hoped it would, there is always the possibility it could

be sold to private equity, and then, you know, conceivably, your control shareholder, almost, 33%, roberts, then maybe you get a control premium as well when you do sell after that two years, because that typically makes sure that there's no other tax consequences, potentially. the other thing is, you can't talk to anyone right now in terms of doing a deal if you wanted to buy something prior -- >> no single, nothing. >> you can't have any previous conversations until you actually are a public company. >> i can't make a phone call until -- >> not two years. that's -- i'm saying if this entity wanted to buy something, right, you can't look at doing it now during the year that it's going to take before it enters the public market. >> that's faster than i thought. >> yeah. >> okay. interesting. >> but the two years is to make sure you don't screw with any tax consequences. if you do sell. >> thank you for being the only person who's actually clarified that situation.

>> but as for buying a sports team, if you're ever thinking about it, you can amortize intangible assets over a 15-year period, essentially take an enormous deduction if you have very high income. so, that's a real benefit. i don't know why i thought of it. i guess just because of the mets and steve cohen. >> we were talking about the mets. are you on your phone now, jim, working on buying a team? >> what are you doing? >> i'm talking to -- i'm asking dave tepper about it. >> you could buy a -- you know, like a -- a major league soccer team, maybe, you could afford. >> philadelphia? >> and then you can -- >> what do you think about -- what do you got? >> you have lots of w-2 income, and then you could just amortize the intangible assets, which is almost everything. i'm just thinking for you here. i'm trying to help you out. it's buying the houses over and over, more houses, it's not helpful. >> it's like mel brooks. it's good to be the king. >> it is good to be the king. >> it's good to be the king. >> good to be the king. >> can i help you with any estate planning at all? would you like that too?

>> these houses in mexico. >> yeah. what would you like to do? >> the tax consequences are just a nightmare. can you help me with the peso transaction? >> i can. you should have thought of that before you bought them. >> i didn't get them that way. that's offline. there were some fighting words this week from the mexican economic minister saying, you guys have a the lot of money he. tariffs or anything to damage the relationship might have some interesting consequences. >> they're also fiery about china. i think they're going to slap the tariff back on, because china took over their auto industry, and as soon as they lowered the tariff -- claudia, a little more of a economic heavyweight than people realize, she's going after everybody. i think it's going to be more difficult for president trump -- you know who they may need? they may have to bring back navarro. peter navarro. >> there's a huge debate about ustr and commerce and who's going to report to who, and

congress created ustr, do you need them to deconstruct it? >> the presence of lighthizer, who was the driving force in the first trump administration in terms of tariffs, and negotiating the new deal with canada and mexico, and what his role really will be. i guess the best we've heard so far is czar, but i'm not sure what that really means. >> yeah. >> because he has a very different view of -- in terms of how we should be restructuring the u.s. manufacturing economy and revitalizing it to the extent that obviously the biden administration also had a view on that. >> well, i do think that, as i try to get any of these guys on, i do think what's happening is we're about to see. we're about to see how hard they're going to be on china. nvidia, china's come back as a growth area, but they don't send the grade a. they hobble the chips and send them to china. totally in spliens compliance w administration. now, if peter navarro were to get in, i don't know whether

that would be the same. a lot of companies have to pay attention to whether navarro comes in. >> two things. jpmorgan yesterday, we've built into our forecast now an increase of the average tariff on china goods to 60 by mid-'25. that's going to be a drag on goods. the other, regarding china, is certainly this starbucks piece this morning on the tape, looking or potentially considering getting out of the china partnership there. >> i think that brian niccol is sitting there and saying, okay, unlike the previous people, he's saying, all right, yum china, it kind of worked. >> mcdonald's too. >> yeah. mcdonald's. so, like, let's figure this out. there's a reason why starbucks stock has not come down from when he was picked and that's because this guy is thinking totally out of the box. >> my understanding is, though, jim, that it was also being considered under the last -- the previous management team. >> if that's the case, he didn't make the case for it. >> they had -- my understanding is, laxman narasimhan, they had bankers looking at different options that included a

potential monetization in some fashion of their operations in china where i think what, they build a store every nine hours or something along those lines? they've got almost -- i just looked here. 7,596 stores. >> the second biggest market for starbucks. >> yeah, right. >> brian niccol is not fooling around. all i'm saying is that everything's on the table and it's going to be solved very quickly. >> you think it's going to be solved quickly? >> yeah, because he's not -- he does not suffer fools. >> uh-huh. >> tough guy. >> is he a tough guy? i don't know him. >> he's a tough guy. well, who was i saying that i liked last week that you said was a tough guy? >> i forget. you said muffay was the nicest guy you had ever met, and i questioned that. >> i feel that brian niccol is one of the nicest guys, and you question me. we should get to snowflake. >> let's get to it. >> when i looked at the quarter, it was fabulous, just fabulous. strong core business, lot of new

products. they got this anthropic deal. i don't understand the data volo acquisition was good, but main thing i thought was, they now have a model -- they've cut a lot of the fat out. there was fat there, deadwood, whatever you want to call it, but if you want to test a.i., if you want to rent a.i., now you're going to go to snowflake. and i have been waiting for the breakout inflection quarter, which, unfortunately, happened when i also had three guests, so i couldn't have them, but they are finally where i thought that slootman, legendarily -- >> former ceo. >> the former ceo felt that they could go, and i felt very good about the quarter. i think they are now the place to go if you want to see, before i spend a billion dollars going to dell and, you know, racking up my, you know -- >> so, i'm looking at a piece for morgan stanley that says, "out of the woods? and you believe the answer is they're out of the woods. >> oh, sondheim. ♪ out of the woods, into the woods ♪ you've seen a play. >> i have seen quite a few

pieces of mr. sondheim's work. you're talking about "sweeney todd." angela lansbury. she was the original. >> lansbury, lupone, and sara bareilles, i guess. palo alto has turned around. >> another pack of lies, okay? the idea was that they -- they missed the billings number. he very specifically, and here we're speaking about nikesh, said, billing is no longer the way to look at my company, i'll just quote on my thing that you put it over morning. "18% --" they want you to use performance obligations. it is a better remaining performance obligation is a much better way to look at it, and the stock shouldn't have been down because the orders were amazing. multiple price targets, more than 12 price targets and the annual revenue growth is great

and that's what you have to look at. by the way, it's going to carry crowdstrike up, which was amazing. the people who are selling palo alto, the people who are selling it down 20 points, you want to just throttle them, carl, because you want to say, listen to the call. nikesh was very clear on the call. they were selling it before nikesh spoke. he came on "mad money," and basically, again, put out how this company really works. but there's so many people who do this afterhours trading. >> you can trade any time you want. you don't need to wait for the call. >> yeah, and you can be wrong. up to read the first amendment. that was the jeffersonian thing. jefferson said, you can lose a fortune, i don't care, it's all right. it's covered by the first amendment. >> nice little two for one split, effective december 13. >> we were laughing about that. come on, it's a retail stock. let's start with a two-for-one split. i decided to start with how the company's actually doing and ended with the two-for-one split. the arc of the conference call -- >> i know you focused on that arc the way you do. >> players. >> a play with three or four acts.

>> the arc of my conference calls bend slowly. >> they do. but do they bend towards justice over time? i'm not sure. >> they sure do. oh my god. mlk, man. >> by the way, kanter does initiate crowdstrike today overweight. so, we'll see. >> george kurtz is -- anyone who does 130 client tour in 100 days to explain a computer glitch is going to end up having more business, not less business and that is george kurtz, and i will not -- i'm not going to say it. >> le mans. le mans. >> how about seabring? >> what's that? >> he won that too. >> oh, he won that too? >> he won daytona. >> he won daytona? >> the daytona existence contest. >> what is it? >> there's a 24-hour daytona that he won. >> 24 hours of driving. >> he wanted to do all the driving because he doesn't sleep but they limit you to three hours at a time. >> oh, wow, like pilots. >> yes. george doesn't sleep, which is interesting because when i was with him in italy, i don't think he slept

i try to catch a few winks there. >> speaking of drivers, a lot of deere tractor drivers happy today. this is going to take you back, jim, highest level since late '23. >> better than feared quarter will do that, and i think people have to recognize these guys have kind of -- they're not the only game in town, because cub cadet, which i had stanley black & decker on last night. i urged them to blow out that business to go directly to deere and gator because deere has huge gross margins and that was a very proud of america quarter. it was a good quarter. >> you did write this morning, i think, about rates, saying it's the key to the market. it's affecting stanley. >> yeah, yeah. >> and i just wonder how you think we're going to get to the 2% mortgage rate that trump talked about during the campaign? >> i asked every one of the executives that i deal with, who are involved with housing, bank executives, how are we going to get that mortgage rate down? nobody really knows how to do it. and people are now getting very

abject, and i say, listen, if the fed cut rates to whatever, would mortgage rates go up or down? and people are saying it's a toss-up. >> yeah. well, there's -- there's a good deal of concern about the inflationary impacts of trump's agenda. >> and bitcoin. bitcoin. >> tariffs. >> the banana painting. >> deportations. if you have significant ones, and the "journal" today detailing concerns around agriculture, meat processing, for example, many of which employ people who are not documented citizens of this country. >> harvest of shame. >> or even documented noncitizens of this country. >> what it would do to prices. it would raise prices dramatically for a lot of different things. >> right. so, what is that environment going to entail, then, for interest rates? what's it going to look like? i mean, it's very much unclear. >> no, it is unclear. >> you just don't know what they're going to be able to do or not do as well, how many people are going to be deported? what are the tariffs going to end up being? >> now you're getting into the

actual nitty-gritty of what happens to the economy after you decide that you want to be a different kind of country. a country of only documented workers is a country where you're not paying minimum wage. you're paying maximum wage. >> right. that's going to be wage inflation. that's good for workers to a certain extent, but then wage inflation creeps hroughout and you're not going to get your mortgage rates down. >> and you're not going to get a mcdonald's value meal the way you'd like it. >> barkin's point yesterday, the u.s. is vulnerable to inflation shocks. companies will have more license to raise prices. >> yes, they will. that's why you -- the hope is actually going back full circle to nvidia, is that they introduce agentic a.i. it will make it so that people are able to be, if it gets too expensive, you can have a machine, and the company that is most involved in this kind of thinking -- >> salesforce? >> no.

>> oh. >> agentic could be a humanoid. >> oh, a robot. >> humanoid. not robot. that term is gone. >> what does that mean? what's a humanoid? it's not human. >> my understanding is there is a secret place where elon musk is developing -- >> secret place? >> -- thousands of humanoids. >> robots. >> humanoids. get with the damn program. >> is it a hybrid of a human -- >> listen, sunshine, it's not robots. >> is he taking live people and -- what's he doing to them? >> he's not taking humans. >> soylent green is people? >> "to serve man" is a cookbook. >> what's he doing? >> he's -- robots go like this and like that. human humanoids go, like, "hey, how you doing?" >> okay. all right. stop using -- stop using their words. >> humanoids talk. >> stop using their words. he's making robots that look like humans. it's even more scary.

but it's great. >> just forget the -- focus on the word agentic and forgot robot. >> you're going to talk about salesforce, your favorite company, and the agent -- >> yeah, well, it didn't happen. they're doing that. i'm just trying to brace you for what the new world -- >> to your point, by the way -- >> aldous huxley. >> you -- you've made the jump from, we're not going to have enough workers to, we're going to need robots. you did that without explaining. >> what elon musk wants to do is have people who are, well, they're kind of people. >> he believes 8 billion people will have 8 billion robots. >> how does he have time to do that, eviscerate cable and also put in a whole new government? >> he's got a car business. >> that starlink. >> he's got good people. got to have -- >> twice as fast for half the price. >> by the way, put up a datacenter in memphis in record time. don't forget that. >> and the skunkworks where they're making humanoids.

meanwhile, the insider selling ratio at tesla, all-time high. >> well, again, it's good -- i have to go back to mel brooks. it's good to be the king. >> tesla hanging on to $344. as we go to break, let's watch bonds. we did get claims, as we mentioned earlier. lowest since april. we'll get l.e.i. and existing and fed speak today as, goolsbee and schmidt and barr tonight. stay with us.

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jim and stop trading. >> my partner's irony is duly noted, okay? he's an ironic fella. you're like rod serling. opco raises salesforce today. it's working. better i.t. budgets. that's something that snowflake said also, by the way, that we heard from nikesh at palo alto. what's most important is when you go over the nvidia call, they list the companies that are using their product, the agentic way, and salesforce is mentioned prominently as a company that's using, for agentforce, it's agentic. >> there were a lot of companies mentioned. it was sort of interesting. >> cadence, cohe'sty, net app, salesforce, s.a.p., and then servicenow, i saw them on the 10:00. and consulting is accenture and deloitte. so, remember, this is literally that you have someone that's not really -- that's not a person, that is much marter than a person, is not grumpy, never

sleeps, and is really polite. can you imagine? give me the agentforce. i don't want the human. >> no surprise that software's once again the biggest industry group in the s&p. >> it's like the old days. i know that i have disney on tonight, and you know, disney, they're -- i would go on the cruises. that's all run on -- they use salesforce to be able to make a 360, so if you stay at the theme park and you're on the jungle cruise, then you probably want to be on this cruise, and they have it. they have the data. it's extraordinarily important. kindrel, that's a spinoff from ibm, doing quite well. anyway, disney -- i wish you people had seen the drone show, because -- >> we tried to show the pictures yesterday. >> gorman, like, hugh johnson. these are serious guys, and we're all like, you got to be here. you had to be there. >> i would. >> just like teenagers at a taylor swift concert. yeah. >> oh, my, yeah, or anything that jensen does. >> jim, we'll see you tonight.

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the third they morning -- thursday morning. welcome to another hour of squawk on the street. a little bit of squarely action to start thursday. the s&p has been out of the red a few times. the dow has a gain of about a 10th. a busy morning as we react to nvidia earnings, deer, snow and much more. we are 30 minutes into the trading session. here are three movers we are watching. nvidia is what we are watching. we will break down the numbers and what it means in just a

moment. results out of china posting better than expected results but revenue down 3% year-over- year. both stocks in the red. pete diddy down almost 5%. another day, another new all- time high for big going with crypto names right in the raleigh. micro-strategy nearly doubling on the month. more on that is coming up. >> we will get to rick santelli and diana. let's start with rick. this is the leading economic indicator for the month of october down 4/10 of a %. a little more negative than we were anticipating. it was originally released down half a %. what is notable is this is the 32nd consecutive month without a positive integer. last positive was in february 2022. this is the weakest change with respect to leading indicators

going back to april of this year. we do want to point out something. there was a special question this morning. what do you see the inflation rate over the next four quarters. the response, 3%. the last time they asked in august it was 2.8%. we have data coming out. existing home sales for the month of october. for that we go to diana. >> sales in october rose 3.4% to a seasonally adjusted annualized rate 3.96 million units. sales of 2.9% from october of last year. the first annual increase in over three years. this is based on signed contracts. these deals were inked when the average came down sharply bottoming at 6.11 % in september. the supply of homes for sale was up just over 19% year-over- year. inventory is still at a four point -- 4.2 month supply.

$407,200 was the median price of an existing home up 4% from october of last year. share of all cash sales pulled back to 27% lower mortgage rates may have caused a slight drop. first-time buyers also at 27%. historically they make up 40%. mortgage rates are much higher, 7.05% on 30 year. a new report showed a surge in the number of people contacting agents in the last week. the so-called demand index of 70% to the highest level since august of last year. that search started after the election so a lot of people on the sidelines coming off. >> thank you. appreciate it. in a while, nvidia shares have been volatile. chipmaker sales nearly doubled although the q4 guide was a key

sticking point for some. here to break down the action and what it means is mike santilli alongside the head of technology research. he just raised his target to 195. we talked about what is left in the way of catalyst this weekend going into year-end. >> not a lot of identifiable ones. it has cleared away that focal point of potential movement in one direction of the other. it also punctuates the earnings season. it really brings us to a point of saying, three quarters beat, 6% growth, more or less in line. i don't think the fundamental assumptions have been challenged so you can roll forward the standard delicious. interesting that the broad market has really been stuck in this spot for a couple of weeks. it has been shifting weight from one leg to the other,

waiting for some treasury yields. it seemed like we would have a big buy but then we backed off. i think a lot of the erratic action in crypto and penny stocks and the adrenaline trade is all in this one corner the market and it's keeping them from calming down. it is now flat on the day. it's a funny moment where he seemed to be waiting for more things from the administration. the fundamental story in the aggregate sense is fine. >> why do you think we are seeing the adrenaline and some of these smaller companies? >> there was a fast money response to the election but also leading into the election. you have the premise that equine will be vastly in favor under the new administration has a life of its own. micro-strategy is a leveraged virgin -- version telling you it's going to at any price.

i think that has kicked up this trade out there. there is a stock i don't want to give too much option to but it's called quantum computing. it is up 300% this month and nobody ever heard of it. there is some of that going on below the surface that i find interesting. i wonder if it either spreads to the rest of the market or can get it out of our system and that sense and the rest of the market can trudge along. >> groupwise pharmaceuticals, let's call it broadly speaking drug-related continue to be under pressure. financial is having a good go with all the major banks up over 1%. >> financials has been the one consistent trade. if you said let's map the 2016 experience it worked. it's a very linear deregulation story, i think when it comes to things like pharma, when it comes to things like intuit going down it feels like the

market is overtrading the implications of all these potential policy moves in the near-term in the absence of anything else changing on the fundamental front. >> let's turn to you on nvidia. you write about constraints today and how important that is. >> what is greatest it means more is coming later. with nvidia they are the only gain in town. you can't just plug in an amd chip because the software won't work. you have to wait until they can ship it to you. we like that. you can see the stock did not stay down very long. the reason is we know more is coming later. that drives sequential growth and margin improvement and that is ahead of us. they are the only semis company not talking down the 1q.

>> what did you make on his pushback on scaling? >> we wrote about that earlier in the week. we think that is something we will work through. i was really impressed. there's a podcast with anthropic. he explains the synthetic data trend and how machines will create data and create data from scratch and that will help to feed them and keep them going. usually in my experience, and i'm no phd in a.i. chip scaling, but from what i can see the industry will work their way out of this. >> you are not concerned? i want to make sure viewers understand this concern that we raised a few weeks ago that you are not getting anywhere near the increases in terms of productivity from the latest models versus the last model. you are not a buyer of that in terms of believing there's a wall that is being hit.

>> i think we have the smartest people in the world working on the problem. they will find their way through things. there was a bottleneck, these are really smart folks working their way through things, but the positive surprise is data is the new gold, is the new oil. it's really coming into its own. we are creating data, we are creating synthetic data. also you have elon musk taking more and more nvidia, revolutionizing self driving. i think they have made a lot of advances but that has taken hold. i think we will find our ay through. >> the data center is a new manufacturing hub for a.i. as jenson said during the conference call. let's get back to your projections. what are your anticipations in terms of the growth rate back

into the multiple is where you have your price target. >> next year i have revenue growing 50%. i think that is conservative. the next year i met 22%. who knows. the 22 sounds pretty light considering jenson's track record . the target is only 35 times the 27 estimate. it's a pe to growth that is still very appetizing right now . of course, on any given day the stock can go down, but i think even the growth that is out there for this company and given that it is a systems company that is what this is for the enterprise. it will be bigger than people think with more profits as a % of the total industry. it still lasts longer just from my experience the vertically integrated companies that do it all and tend to hit it right

tend to go on longer than people think. >> i'm interested at your revenue projections at 50% and 22% and how nvidia is walking this carefully. talking about growth but they probably won't see 50% forever. can they walk this carefully? >> what needs to happen is this is a cash gusher. at some point they have to buy back more stock because there's nothing they can do with it. the government probably can't let them by anybody even close to 1 trillion so they will have to do ckg acquisitions and give stock back. they will go through just like apple did the metamorphosis of more mature, we have more recurring revenue. that's why they are building a software business and will continue to do that. right now they are in growth mode, but let's put some trust that they know they have to

build up those recurring revenue streams and return cash to shareholders when appropriate. we will see how they do but i have confidence that it is a systems company that makes them a little different than a chip company that is running and gunning like some of their peers. >> is that about the time services got taken seriously? >> iphone six was this huge big- screen transition. than the cfo really did a great job of saying, this base we just built is going to have all this recurring revenue. here it is. they are not ready yet but they said last night that within a year or two the number will be way more significant, weimar tracks. also there's other things that

they are driving. they are enabling the market. these kind of things will get more important as we go throughout. i think a lot of companies will not be able to live without these products as they adopt a.i. >> thank you for walking us through. as we head to break, here's the roadmap for the rest of the hour. markets are still waiting for the new treasury pick. bit coin is getting closer to the 100,000 milestone. we will have a closer look at what is fueling the gains in which crypto names are riding along. we will get more on the outlook for housing with the ceo of compass as squawk on the street continues after the break.

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to 40 top contenders. a brief overview of who trump is considering. the first is scott bessent. he was criticized by elon musk as a business as usual candidate. there's some concern that he could be insufficiently supportive of the tariff agenda. the most well-liked candidate from wall street is kevin warsh. he spent some time in the bush white house. he spent some time -- he's also in the esti■ lauder family. he has written about being anti- protectionism, anti-economic isolationism and his pro-strong dollar. all things that could clash with the trade agenda. then there is mark rowan. he is worth at least $9 billion and has really helped grow the firm into the behemoth it is

today. as for his views, he did one just last month that aggressive rate cuts could backfire. he said it is not clear at this point that more cuts are needed. knowing how trump feels about you -- easy money policies you wonder how he feels about that. then we have bill hagerty. he's been in the discussions for several days. he implemented the trade and tariff agenda and has the backing of the crypto industry. a lot for trump to contend with their. while we do think it is down to these four names i should also note that just in the last hour that bloomberg is reporting trump is telling allies is not sufficiently sold on any of these candidates. as usual nothing is final until we hear it from the president himself. >> i was going to say some of the economics reporters as a joke posted a picture of minutia and. i wonder how much

you are keeping an eye out for darker horses? >> we have to. we have done this research. because we have not heard anything we really thought we might get something late afternoon, late evening yesterday. the fact that we have not gotten that really toasty there might have to be somebody new we are thinking of yet. you also have to look at how things have gone so far. we know that matt gaetz was not on the list for attorney general. he made a pitch for himself on a flight and now he is the nominee. we have to think outside of the box. >> i was wondering the same thing. what if it's not one of them and we go back to the drawing board. thank you very much. a quick check on tesla shares up more than 35% since trump was elected and own pace

for their best month since january of last year. bank of america writing there's more room for growth in 2025. bit coin hitting new all-time highs, near $100,000 a coin. what is driving the action, after the break. to outperform the index. that's the power of curiosity. better questions can lead to better solutions. t. rowe price. invest with confidence. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. our advanced matching helps find talented candidates, so you can connect with them fast. visit indeed.com/hire

bit coin is up more than 40% since trump was elected. we have been tracking the action. bit coin could certainly hit 100 k as soon as today. this driven by some technical trading issues in the futures market, specifically the spike in funding and open interest overnight. also one thing is that bit coin options at 100,000 expiring on november 24 have become a dominant hedging point. after they expire this weekend many traders will be incentivized to hold on at this level. of course, the overarching

theme is the excitement and hope that trump will usher in this golden age of crypto. that will include a more friendly regulatory environment and a national reserve or stockpile. etf's also past $1 billion in assets so i think you will see the demand continue to grow as institutions become more comfortable with the asset class. those institutions, i think they could become an even bigger driver of the price well over in the market you might see attention start to turn more to revenue-generating like if uranium. a little bit of pressure about bit coin proxies have been rising. i think that is reflective of the bit coin versus everything else division we have been seeing since the election. >> if i could ask you a

question bridging together what we heard from megan castella if we do end up hearing that senator bill hagerty ends up being the treasury pick. do you think that would be another catalyst to push us beyond that 100,000 threshold that seems to be a sticking point. >> that would be a huge deal. it is so important. i know the sec chair and the idea that has come up of the crypto star is a very big deal but i think that role in the treasury addresses so much of the challenge that crypto has had in the past four years because it's not just about the state of whether a coin is a security or not. for bit coin that has been de- risked for a bit but i think the treasury would give the top- down messaging that allows for broader crypto forward innovation and support for the industry. >> what is the point of a bit coin national reserve?

that reminds me of the petroleum reserve, but what is the point? >> that is a great question. it's my personal opinion or concern that a bit coin national reserve or stockpile would not necessarily address all of the challenges the crypto industry has had on the regulatory front. that said, nothing wrong with the idea of a reserve or stock pile. i think that would be very welcome. whether it is remains to be seen. they are definitely talking about that and it hit a fever pitch recently. if it's a stock pilot remove some of the risk of cell pressure, what the u.s. would be tapping the reserve for, i'm not sure. we will watch the price closely. thank you. let's get to some of the other

big movers of the day. >> shares of snowflake are soaring after reporting a major quarter raising full-year guidance. it issued better than expected guidance. goldman sachs reiterated their by rating -- buy rating saying they are pleased. jeffrey is raising its target price to $180 saying they have a massive runway ahead. snowflake is up 30% towards session highs. for more color on that be sure to tune into john and his interview with the ceo later today. supermicro shares are bouncing back about 7% after nvidia named the company one of its partners. shares have skyrocketed more than 45% just this week alone after they announced they hired a new auditor so those shares are up 5%. shares of palo alto and the red despite the revenues and

profits and a stock split. analyst pleased with the execution of the platform strategy upgrading it to a buy . piper is keeping the overweight rating. you can see share still down about 1.5%. for more and those other top cause of the day go to madmoney.cnbc.com -- cnbc.com. coming up next our own money movers, as users seek alternatives to x, social media competitor blue sky as 1 million users a day for the weeks. right now the company has just 20 full-time employees. still ahead this hour, today's gains helping nvidia shares triple on the year. we have 1% declines on the nasdaq. stay with us.

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welcome back. this is your cnbc news update. the u.s. disputed ukrainian claims that russia launched an inter-ballistic missile overnight. they said it was an experimental intermediate range missile. ukraine made the claims following an attack on the city that damage to medical rehabilitation center. the international criminal court issued arrest warrants for israeli prime minister benjamin netanyahu and his former

defense secretary. they said he committed war crimes. netanyahu called it anti- semitic. the u.s. rejected it as well. the university of texas will be admission free for students this fall. they introduced the plan that will pay 100% of tuition and fees for eligible undergrad students whose families make less than $100,000 annually. they must also be texas residents. it's expected to benefit more than 7 million families. a volatile morning for nvidia now down a little bit after an all-time high this morning. we have more on what the street is saying. we had a record high at open. >> you did. it's definitely off the drop yesterday. we know they can't turn out chips fast enough to meet soaring demand. that was the theme yesterday which means supply remains constrained and the growth story stays intact.

that is why analysts remain incredibly bullish with new price targets ranging from 135 to 190. out of 66 south side firms 91% suggesting investors should continue to buy. they think any pullbacks should be bought on blackwell demand. will we see a drop in 5%? not sure about that. piper sandler saying they believe visibility extends to most of 2025. they suggest paying close attention on january 6 big tech events in las vegas. jenson huang will be speaking. you should mention expectations and enterprise. that should move the stock. additionally i want to add that in two weeks amazon will host an event perhaps where they will mention their own chips. that could be a negative

catalyst but it's hard o find contrarian opinions. davidson said they believe demand is inevitable as customers - demand should start to decline as they start to scrutinize the roi. i don't know how soon that will happen. when will customers say spending is too much. for now production is hitting full speed ahead. jenson huang promising that the need would not be e-zine or scalene anytime soon. that was a big take away as well. >> not to mention the guidance on hopper. they did not rule out quarter on quarter strength. >> to that point you have hopper and blackwell. they will create an annual cadence every year. there will be digesting when you transition from one to the next. when does that hit a wall when they no longer want to keep getting the next iteration. you take the counter to that

and there's $1 trillion worth of all data centers that need to be modernized so that prolongs the transition for quite some time. as investors, you have to look that it will take a while. they get more and more complex. we saw the delay in the summer. if they are creating an annual cadence there will be possible hiccups every single year. something for investors to keep in mind. >> thank you for making us a little smarter this morning. the chipmaker is underlying remain strong. joann joins us to discuss. let's pick up on that point. blackwell is the future here. what are your expectations? >> good morning. there is clearly a lot of potential. as was just commented on, hopper is not done. it's unusual for chipmaker to announce a better, more capable

chip coming up and not see sales decline for the previous chip that is a signal of how strong demand is. to see growing quarter over quarter sales is in -- even as it ramps is very unusual. it tells you about the duration of demand. they have a long waiting list. the company has unusual visibility. it is a nice place to be. longer-term we like them. we have owned it for a long time and we continue because of its growth potential from here. >> it is kind of hard to find someone who is not interested in owning. of we are trying to look at some weaker points, are you worried about the gross margin challenges that navy ahead? >> there is always something to worry about with any company no matter how good. that is why we offer diversified portfolios when we build them for clients. in this case, the risks are

little different than usual. often times you worry about execution risks. we are just not seeing those problems even with those rumors. it turns out it's a server and rack design issue that they can handle. another risk is competition. nvidia has such a strong lead it is likely to dominate the market for years to come. even as it amd brings tips to market and development continues to push forward. we see other areas of development, but the market is so big we don't think it will erode prices. on the gross margin front, the company outline will be a little bit of a hiccup. the company has about a 75% gross margin which is pretty unusual. the reason they can achieve such highs is because of the software. as they ramp there will be increased expenses that will

strain a little bit. they have really good visibility so that should work out pretty well. >> if you were trying to construct a negative scenario when it comes down to the idea that end-use applications are not making as much progress and therefore the hyper scalars will be under pressure to slow the spend? i know it sounds unlikely but i guess it is possible. >> that's exactly right. at some point to the hyper scalars say we have enough. we will pause and see if we can make money with these training models et cetera. that is the big fear. i think that is part of what the thesis is for the company. when you look at the tale of demand you see it beyond the hyper scalars. even beyond that, companies in the financial industry are starting to think about ways to

deploy but more importantly to do it on the private data to potentially bring in training on their own data whether it is emails, not client data but process data to improve the back office, to deliver greater savings. i think there's a long tail and enterprise but that could take longer to turn out. so that is the biggest risk. given their visibility we don't see it coming up anytime soon. >> absolutely. shares have been all over the place. perhaps an opportunity for some that might want to get in. joann, thank you for joining us. >> as we got a break check out some of the names that hit highs today. we are watching some declines on google. when we return, where the housing goes from here as the rate on 30 year fixed hos ld above seven. the ceo of compass will join us with predictions.

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the housing market had a brief last month due to falling rates which led some buyers to get off the fence. that led to the first year-over- year gain in the sale of previously owned homes. cannot continue and is it rnntingent on rates? tu io the market navigator later today for the trades to make in the sector at 2:00 eastern time. the type a cpa. the bootstrapper. the bootmaker. yeehaw [narrator] but many do have something in common. we all trust schwab with our wealth. [narrator] thanks to our award-winning service, low costs and transparent advice. every day, over a million multi-millionares trust schwab with more than two trillion dollars of their wealth.

welcome back. existing home ales coming in stronger than expected this morning. the rate on the 30 year fixed mortgage hovers right around 7%. the compass cofounder and ceo joins us right here. always good to have you. are you feeling a little more optimistic. 7% seems to be a barrier in terms of significant increases in and the ability to buy homes.

>> 7% is so much better than last year. we saw that existing home sales in october are up 2% year-over- year. the average transaction has still been anemic. it has been just above 4 million when it should be above 5 million. we have 3 million transactions that are pent-up demand. >> we bring you on and you always talk about this. is it going to get unlocked. i would imagine you need a lower mortgage rate to truly believe you will start to address that shortfall. >> the number we want is the number that we want which is below six. give me 5.999 for not one day but a couple of months and we will be very close to midcycle. we are at seven and you know the 10 year is higher than we

expected. however, there's a positive sign based on history which is the year following 10 of the last 11 presidential elections transaction volume and prices increased which reflects that people tend to hold off those purchases during an election year. >> i have spoken to executives at home depot and lowe's. they both think that housing turnover has likely bottoms. >> i think we can't go much worse. there is no sign in recent history of going much below 4 million. we've been below that for the last two years. i do not think it can go lower and there are a lot of reasons to go higher. there is pent-up demand of transactions that should've happened. you can only hold that back for so long. >> it is below that 6% rate.

>> we will be back in a normal market. >> tell about areas of the country where you think inventory can continue to build? >> inventory is building across the country in every state. we are up 20% year-over-year across the country. we needed to grow another 30% to get back to pre-pandemic levels. the hottest markets are the luxury markets. as raised increase it does not really hurt luxury buyers that don't use mortgages. they benefit because they are recipients of interest income and are not paying the mortgage. >> what is the first time? 24? >> there's a dramatic increase in first-time buyers. the average age of the buyer today is 40 when it used to be in the 20s. first-time buyers are getting hit because of affordability. that's an issue because there's not enough inventory. >> are you confident that that

is also troughing? >> we need more inventory in the country. there's been talk with the presidential candidates. we have launched new products to help build more inventory. compass coming soon, what they are doing is they take away the risk to list. this is what it means. there are hundreds of thousands of people that would list their home if there were no days on market or price stop history. there are people that would list but they don't want to accrue all these days on market. these have no days on market, no price drop history. we are seeing that bring different inventory. >> how are you navigating the deregulation of broker fees, if i could call it that >> what is going on in the industry? >> i'm pleased to say that of all the reports that are out there, nobody is saying there

is a significant change on commissions in any way. we are moving through, working with our agents to make sure they have the best advice possible to give to their clients but we do not see a negative impact. >> thank you. let's get a quick check on deere. you can see the games are higher by 6%. the stock has been an underperformer up only about 7 3/4%. this next story is bananas. how much this edible art sold for last night. you are going to want to hear this when squawk on the street returns.

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alphabet chairs are getting hit pretty badly. the doj is officially calling for the company to divest its chrome browser. also as well saying it should cease paying distributors such as apple and samsung for as much of the decade. this, of course, part of the ongoing decision-making here which they did rule that the

company is a monopoly, but what exactly is it that will be done to curb those monopoly tendencies it is at issue. it will take years but it is having a significant impact on stock rice. the first time we have seen a significant impact given the loss even at trial and on from there. >> this chrome seem to be the move that makes sense for you to break up a monopoly? >> they are trying to open up what they would say a huge swath of search infrastructure and trying to figure out different ways to do that. maybe, i guess. >> that's a decline the second worst day of the year. sosebee is holding an auction last night. one piece of art hitting a lot of attention. robert has the details. you have to explain this. >> this is where the insanity of the crypto market combines with the sometimes absurdity of the art market to create a $6

million banana. you may remember this went viral in 2019 when it debuted. it's a banana duct taped to a wall. six bidders battled for it last night. its formal name as i just mentioned is the comedian. this thing was estimated at one to $1.5 million. you could tell the bitter online was going to pay whatever it took because he went all the way up. it hammered out 5.2. at the fees, that is $6 million. the buyer is the chinese born crypto investor. he has purchased art before including a $20 million picasso and has been a big player in nft's. he gets a roll of duct tape, instructions on how to install and a certificate of authenticity. the banana was not included because it has to be replaced. he said that it bridges the

world of art in the crypto world community. he said he will eat a banana in coming days as part of the artistic experience. this is part of the art auctions this week. we see $1 billion worth of art. so far this week signals a rebound. i think that has a lot to do with what we are seeing in the stock market. post election the of gloria -- euphoria and some could art that went for $21 million on to say. it's not just the bananas that are banana. >> i don't know what to say. i don't like bananas. i do not understand why the banana is not part of the art. >> the banana goes bad. you use a real banana. >> he spent $6 million for the duct tape and the certificate? >> it is the certificate. it certifies that this banana

installation -- the magic is the duct tape and the banana together. >> i have never seen anything more magical than duct tape and a banana. >> it's an original work. the thing is not the value. it's the certificate of the thing that is the value. >> not o mention the intent of any artist to provoke. this is provocative. >> the whole point was to make fun of our prayers and wealthy collectors. whoever bought it for $120,000 flipped it for $5 million. that return is more than 25 times better than the s&p over the same time. it is twice as good as nvidia. ever thought that who paid $120,000 five years ago was in a to get the joke is on us. >> you need to change your distaste for bananas. >> they are a great source of

potassium. >> i do not care for them. even after running a marathon they are just gross. >> the art market overall seem to be improving perhaps under a trump presidency. this week if it holds will mark the turnaround for the art market that has been in correction for two years. we will see whether it holds. our basel is a bit of a better barometer for these markets which tend to feature high- priced things. you can go to my inside wealth newsletter, out today by the way. we have a look at whether this you -- recovery is a bit of euphoria. it has bn eegood. >> thank you. from the art market and back to the stock market right after this. when you're looking for

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elevated home-shopping experience. beautiful design, tremendously rich content. feels like a work of art! (marci) what about the app? (luke) uh-oh! (marci) wow! went all in on gold. (vo) ding dong! homes-dot-com. we've done your home work. let me set the record straight. are people born wicked? or do they have wickedness thrust upon them? oh! -ah! [ laughter ] no need to respond. that was rhetorical. hm, hmm. ♪ good thursday morning. welcome to "money movers." i'm carl quintanilla with courtney reagan at post nine of the new york stock exchange. nvidia rounds out the mag seven moving lower despite revenue nearly doubling year on year. $3.6 trillion market cap, each 1% move is