our hat. >> that's what the cfo of best buy was talking about on the call just now. it is only 20% of the quarter those first three weeks. >> courtney, thank you very much. let's take a quick look at the markets before we hand things over to "squawk on the street." the dow futures under pressure, down by may be pressuring the dow right now. the nasdaq up by 72. that does it for us today. we'll see you back here tomorrow. "squawk on the street" begins right now. good tuesday morning. wp to "squawk on the street" pem carl quintanilla and david faber at post nine of the new york stock exchange. futures are mixed this morning and so is the reaction to retail earnings and the president-elect's announcement he'll impose import tariffs on america's three largest trading partners. 10-year yield higher, below 4.3. road map begins with the dow and s&p tracking for their best year since 2021 and retailers are crossing the tape as the holiday

shopping season enters full swing. >> plus the trade threats. the president-elect vowing on day one to impose a 25% tariff on all products from mexico and canada and additional 10% tariff on goods from china. we're keeping an eye on shares of amgen this morning. they're down ahead of the open. the company said its obesity drug caused 20% of weight loss with no plateau, but seemingly not enough to please investors. >> let's begin with the markets one day after the fresh record highs for the dow and s&p and the russell which couldn't quite get it on a close. >> i think these days are all kind of rotational, though. i watch a lot of the shows that talk about trading and every day an obituary for one part of the market. yesterday owe bit tarry for small cap, there are small caps related to ai, aviation, to the themes of bitcoin that don't have anything to do with reality

and not making money and those are the ones that were excluded yesterday. yesterday was not a mag day and yesterday, david, you know, nvidia up today because of fugato. >> yeah. >> are you watching fugato. >> yeah. >> it does -- did you do it? >> i listened to it. >> what did you think? >> it was interesting. it was interesting. we'll get to it in a minute and share that with people. >> i jumped -- >> nvidia up today, down yesterday. tesla down yesterday in part because it's being excluded from california's ev -- >> yeah, what is that? >> rivian up because they're getting another $6 billion from the u.s. government. >> it's a loan. >> the market is going to be broadly lower, i believe -- no. i think amgen is going to be broadly lower -- >> because of the latest on -- >> but it was up this morning. >> on posts. >> it was up this morning. >> what was? >> tariffs. >> tariffs. i'm talking about tariffs.

>> i think what we make of it -- did you think china was going to be the worst and then weren't you surprised? it must be a coincidence. >> what did you say? >> it musk? >> it musk be a coincidence. >> i like that. thank you. >> thank you. >> carl, it is reminiscent of the days during an even prior to the first trump administration when we would react to -- to then they were tweets from the president or the president-elect even back in 2016, and the market would react and then it's very much unclear what policy would end up being. >> i think one of the problems, if you go back to the fedex debacle, amazon debacle, what would happen is you would try to figure out what the end game was and the end game was listen, i want a better deal. i do think that canada, okay, see canada, we have a great trading partner and no one thinks that it's anything else,

and then canada gets slapped on the same thing as mexico, and i puzzle over it. i think one is about people coming into the country he doesn't want and the other is about -- >> fentanyl? >> canada is not known as a bastion of fentanyl. we have a lot of cities in this country that take fentanyl, but it's not from canada. canada, i mean look, you take a look at what cleveland cliffs did, they bought a canadian steel company and everybody thought it was a good deal. the government thought it was a good deal. maybe that's just the biden administration. i'm finding canada is quisble. not president sheinbaum. she's a hitter and is out there saying we're not letting in these caravans. >> she is writing a letter to the president-elect. she says it's not with tariffs or threats that the migratory phenomenon nor drug consumption will be addressed, but we are

watching these country's etfs. mexico eww down 2 this morning canada down 1.3. >> down versus the dollar. auto so important. >> auto is very important. mexico more than canada. >> things go back and forth sometimes across the border. the logistics that have been set up by many of the automakers. >> that's why we can't figure it out -- >> complex. hard to get exceptions and who won't. what will be the tariff, if there even is one. >> currency. >> we've been down this road before. it is a negotiation and he's begun it apparently. >> right. i think one of the things that is very challenging is exactly what we have up here right now. he destroys the currencies. i mean, he makes them cheap and then we buy even more stuff. i mean you have a currency and there's a suddenly truth social and everything that you had planned on doing that day in that currency is wrong.

these are hard to hedge against. >> right. of course the big is what the chinese do with the yuan. >> exactly. i think that we have to -- you know, china we have to have a tariff on. 60% -- the reason i think the market was not bad early on was remember he was saber rattling on 60% and his opening bid something telling you they're not going to be 60%. maybe settles at 5. also not targeted. mexico the problem with mexico is transshipment of chinese steel. they make half the steel in the world, flooding the world, they go to mexico, mexico lets it come in and that -- and then destroys the u.s. steel industry. detries the new detry -- destroys new corp. >> why would you want to limit your options at the open. >> we need a dose of navarro

soon. >> that would do what? >> they have a nuclear option. >> they don't let navarro out until they need the attack dog. >> when there's resistance. >> and then he just starts -- >> there's a line. the chinese are saying nobody wins in a trade war. that's not navarro's view. >> i know. >> there's winners and losers. i think like -- i think we're missing navarro the hammer. right now we have the glove. i need the fist. >> jim, i don't know what others may be better to answer the question, who are the winners and losers from the first four years of the trump administration? >> malaysia. indonesia. go to walmart. and you'll see all these countries that have clotheses there made and they don't -- it's not all china anymore. you can get really nice shorts from jordan. jordan has good shorts. >> i've seen, yes, i have seen the big manufacturer. >> that's completely untrue. >> i have seen jordan. i have.

they're good with the needle. >> you really know that? >> yeah. >> okay. >> little surprised. >> they do know how to sew. >> great sewers. >> making chips is a different story. >> right. i do find that, look, these other countries were huge winners and they to an extent are our friends. vietnam is a friend and is not trying to steal our intellectual property. that's the navarro view. intellectual theft. there's seven different sins. >> many trying to grapple with what the inflationary impacts will be if there are significant tariffs not to mention the other side being deportations and what that will mean to the workforce and potential wage inflation. here we go. we still got time until the president-elect takes office, but we're already trying to put things in the mix. it's very difficult to know. >> nobody understood the sales tax issue. nobody understood that. the democrats put it out. now i -- i took three years of

economics at harvard and couldn't figure the thing out. i was like okay. you can't just say it's a tax. it's not just a sales tax. it's a regressive tax. but there were many different factors that made it seem like that that was a middle -- that was not well explained. in the same way that goldman was used to say that trump's -- his plan was far more inflationary and the progressives hated the fact that she had -- vice president harris read a goldman sachs report. the things that they were saying economically were so confusing and there are people who come on and they claim that it was coherent. and i want to know where they went to school, who they studied with and what the heck they learned. >> yardeni does a look at how this is not 2016. back then, of course, cpi was 2.1, it's 3.3. 10-year was 1.8, it's now 4.5, debt to gdp was 104 and now 121.

>> and talks about buying vigilantes. the new treasury designate is interesting. i know we're not -- we're not where they think we are. that's why i think december -- i know december people the fed governors have tipped their hand, but the economy is fabulous. the economy is fabulous. that was another thing that the democrats missed. the economy was fabulous. they never said that. fabulous. >> fabulous. >> well, i think they did -- i think they tried but they -- >> well what happened? >> they didn't do a good enough job articulating. hard to convince people when they -- when they -- >> the price of eggs -- >> you had to go to walmart. >> yet i went to place i used to go to lunch regularly around here and it was $17 for something that was 12 -- >> there you go. >> even though it was five years ago. used to be 12. >> wasn't under lock and key and you had to call someone.

>> it's true. it was very good. >> target did. >> enormous amount of money. >> the target piece is tough. talks a lot about losing share to walmart and amazon. cuts to neutral to 130, they were at 170. over the weekend pieces about how they mismanaged supply chain. >> yeah. that was bad. a lot of it was because they did have port strikes. give them that. but you're starting to sea it's not just the good and the bad it's the good and the existential. go over the kohl's quarter. minus 10 on the comps, minus 9, do minus 10 on the comps that is the death rattle. you can't come back -- i did a study on minus 10, i'm hyping myself today, aren't i. >> >> you are. >> minus 10 the point of no return. you can't get back. >> referring to kohl's. comps down 9.3. looking for down 5. between kohl's and best buy is that enough to offset anf and dick's?

>> best buy had a positive line in a conference call a few minutes ago. let me quote that. best buy enterprise comparable sales up about 5%. here it is. you'll love this. in the three weeks of november, so coming out, they are encouraged by how our doorbusters and other black friday sales are resonating. i get the doorbusters things every day. they're giving it away and it's working and the stock came back. a club stock. we've been selling it. it did come back from 86 because core barry was positive about the season. >> they talked about election distraction kind of what pepsi said which david will never forget. >> i won't. >> why no election distractions. >> fewer snacks because they were worried about the election. >> that was good. why were they not worried about the election at walmart? why are they -- the people only worried about it -- >> i can't explain it. it was a unique phenomena during

the period of time only affected certain snacks that are made by pepsi and people who are very concerned. i would think if you were concerned you would eat more, not less. >> you eat uncrustbles. when you play golf it's uncrustbles that's how you eat. you're looking at one hand -- >> also up this morning. >> yes. >> better than anticipated. >> hostess not what i want blood. >> -- wanted. >> out of uncrustbles. >> how is rfk jr. going to feel about uncrustbles? >> bobby junior? >> yeah. >> not clear. >> not happy about them. >> it's not clear. throw in an issue -- >> lot of things that aren't going to be clear. >> what is clear? >> dick's sporting goods. >> my. dick's was great. >> there you go. >> dick's, there's a real category killer. you have to be a category killer or go home. it's category killer or go home. all right. think of it like that. kohl's is not a category killer. look, you know i told you the kohl's story, they denied me credit. >> yes.

>> that was not fun. there were 100 people behind me. kohl's cash, david, no. >> yeah. >> they're not taking it at walmart. >> sephora, amazon pick-up. nothing worked. >> yet sephora, kingsbury is out. he did relabel all the -- when you go to a kohl's, i'll take you to my kohl's it's kohl's sephora and sephora knows your birthday. >> kohl's less than a $2 billion market value, guys. >> almost falling off our radar to talk about. >> they turned down a bid there. >> probably shouldn't have. >> probably should have hit the bid. >> yeah. >> sometimes you have to hit the bid. >> how about the sandwich why you bought for 17 that used to be 12. >> wasn't a sandwich. one of those things. >> when we come back to amgen. shares taking a hit on news regarding the company's experimental weight loss drug and other news regarding the glp-1s when it comes to medicaid and medicare. logog . are split on tuesday. st w ayith us. you need to be ready for what's down the road.

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performer on the s&p. the company says its experimental obesity drug maritide helped overweight or obese patients lose 20% of their weight in phase two. results coming in a bit below analyst consensus. i think it's mizuho writes no the best in class, not first in class. >> yeah. that's really important also the fact that they highlight that there were first-time use most commonly gastrointestinal nausea, vomiting, constipation. these are all negative. one of the things people have to understand, if you do a trial, as i'm doing, the fda is -- tie goes to the runner. the first one in. and you have to be vastly superior because there's no reason to -- ain't broke don't fix. right now lilly and novo, it ain't broke, so don't put this out there if there's actually some resistance.

it's only the first dose. but wasn't good enough. that's why it's down. i mean i know the amgen people were under the impression it would up. i regard as quizzical. i don't know why they felt that. >> maybe they felt they hit the end points. >> the market was big enough would take any marginal supply. >> i'm a slomo, who is doing a drug test, and i knew that. >> meanwhile the lilly and novo are not necessarily up because of amgen's failure, that may be part of it, but importantly because the biden-harris administration is proposing a rule of anti-obesity medications through medicare and medicaid. we are talking about what could be as many as 3.4 million americans with medicare and another 4 million adult medicaid enrollees who would gain new access to these medications. >> amazing. >> what they're calling the aom. we know what they are.

they're mounjaro and wegovy. >> how could they not be up more than 12. >> more. >> the amgen stumble. this stock is up -- >> this would seem to be a major step forward. >> the market is stupid as all plywood here. did you see louisiana pacific. that stock on fire. >> that said, they can negotiate these prices and the margin not quite as good. i don't know. >> it's just the market they don't know. they don't know that this is the holy grail. you're trying to figure out whether they would get paid. the only reason that it might not be up a lot, somehow the biden administration isn't powerful enough to do it, but i think they are. and so you have amgen kind of knocked out of the box. you have lilly getting the big money that they need, so then the insurance companies will all follow suit. it's probably worth -- my travel trust owns it. we bought some yesterday. it's probably worth 50. but people are skittish. >> so are the hershey's and smuckers a natural short here. >> smucker went out of their way

to talk about how the -- they saw no incident of glp-1 pressure when it comes to hostess. it went out of the way and said it. and -- versus uncrustbles which is what they're talking about. they had to build a new factory because the denver broncos can't eat enough of them. bo nix, who knew. >> i was familiar but during the break i was informed of the consumption habits of nfl players of uncrustbles. >> number one food. >> quite a significant audience for them. >> i thought it was campbell's suit. >> and donovan. >> exactly. and donovan's mom number five. yeah. >> goes back to deep track. >> it does. but it's in crustbles. >> you're a few gatto. >> you're a fugatto. >> wondering what that is about this video that nvidia has released about turning text into sound. cramer's mad dash and countdown to the opening bell. don't go anywhe.er ♪ snow day by caitlyn smith ♪

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take a look at gainers on the ndx. adi nice print. it was up about 7% premarket settling back a touch at 4. we'll talk more about the sem in

is and energy as well which continues to get a little leg after dropping 3% yesterday on crude. some of the cease-fire headlines. don't forget you can catch us any time anywhere. listen to and follow. "squawk on the street" opening bell podcast.

the opening bell is brought to you by nuveen. a leader in income, alternatives and responsible investing. all right. let's get to a mad dash. opening bell right behind it. what do we got? >> i like to be in your wheelhouse. a piece today by citi upgrading chevron. chevron up 7, compared to exxon up 20. hess arbitration looks discounted upgrade to buy. i'm going to say that this is right. now oxy is down 15. connieco down 8. chevron usually keeps pace with exxon and i think this is a very good call. >> they have been unable to close their acquisition. >> i know. >> because of the litigation or arbitration between the two. it's still quite a ways away in terms of that right of first refusal over guyana, that exxon maintains it has. it comes down to really what are a handful of words, simple

language apparently. i haven't seen it. we'll see what happens. >> do you buy the idea that it could now be discounted? this has been something that i -- >> it has. >> it may well be. i would come back and say all right, it has badly trailed exxon not just this year but for the last few years -- >> no. and they have a huge buyback. >> why? >> i would say because it's wrong -- >> it's wrong. the market has been wrong. >> chevron has done a lot. bought perm me yan. fantastic in the golf ulf of me. russian properties that hurt them. i think people feel they've got -- that their asian properties are problematic and that's what i think. they think the mediterranean properties to israel might be problematic. so they have international exposure. >> okay. well -- >> international exposure. >> so does exxon. >> right.

[ applause ] >> let's get the opening bell and the cnbc realtime exchange. the big board, the nyse, client relationship services team and the nasdaq global technology, hong kong based company. recycled consumer electronic devices. >> [ inaudible ]. apple has used their phone, trade your phone in, to get people hooked on new phones in brazil, in countries that are under developed, and it's been an amazing thing. so i follow the cycle closely. >> interesting we can. you wrote the chance of getting over bought -- >> yes. >> historically a positive week for stocks. >> they come in next week and there's remorse. i think that, david, there's a lot of companies that were just bubbling every day that we just don't know. i mean a lot of crypto bubbling.

not today. we did a serious takeout last night about the stuff that makes no sense. lot of stuff. >> tell me. give me an example of what makes no sense. >> sound hound. >> you're talking on t>> specul >> that's my word. >> i say it's okay to speculate but you have to understand it's better when you have a company like a palantir which has a lot of revenue and could be up very big. palantir is a decent speculation. joby not so much. what are you looking at? >> looking for things. looking through my papers. you got a lot of them. we have to look through them sometimes. >> can i see your papers? >> i was looking at the automakers and seeing gm down, as we might expect it would be, given the prospect of potential tariffs and what that will mean when you have factories in mexico, for example, and/or other places or importing parts or things of that nature. ford is down. i was looking at rivian and what i was looking for is that

announcement additional $6 billion potentially. >> deal -- >> from the biden administration. >> they need -- they're not going to do the big plant in the south, the georgia plant -- >> right. >> but in ohio and they need the money so people say if i buy one of these, it's not going to go under. i have they already have a volkswagen endorsement. they're going to be around. >> right. we've discussed this all the time, the enormous amount of capital that needs to be consumed before you can get to profitability for one of these companies is staggering. >> just incredible. >> makes what tesla did more amazing in some ways. >> look, i think we're all -- the undercurrent, carl, of almost everything and anyone i talk about with the stock market, is musk. i've never seen anything like it. i've never seen anyone as powerful to the stock market as musk. and whether it be starlink and

start worrying about it, what he's doing in china, what about d.o.g.e. i mean, about whether he is in charge in a lot of ways of major parts of the government and about spacex. mine, i i mean, i don't know. he's do vin chi. i like to think that jensen huang is da vinci. >> it's difficult to come up with a figure in the -- certainly the recent history, but even if you go back -- >> can't find it. >> conceivably has this much influence in different parts, important parts of the u.s. economy, not to mention now his influence on the key decision maker. >> whi heavily regulated. are we going to watch him ever the table is what i look at. everything. i mean, you have a governor in california, somewhat feckless, governor newsom, and -- >> i don't know if i would call

him that. >> why? >> unless i have the definition of the word correct -- >> feckless is -- >> i mean he's willing to step up and take things on. now, you could say that's ridiculous to exclude tesla because you don't like him. >> i shouldn't have used the word feckless. i should have said ridiculous. i thought feckless was kinder than ridiculous. >> i think of it as cowardly. >> all i know is that i would not want to go against this man. >> governor newsom? >> no, i'm happy to go against him. he wouldn't return my call. mike wirth, serious business person, ceo of chevron, saquon is a beast, tells me -- >> don't get distracted. mike wirth and chevron and then -- >> i could talk for you. i know everything you're going to say. >> i'm in favor of the chevron of , the upgrade is positive.

when i look at stark industries, he's an owner of, how much does musk own in stark industries? remember that's -- >> really? >> that's kind of funny. it's confusing. you got people looking for the ticker for stark industries. >> you have to be funny about musk. he's the most serious person on earth. say he's in charge of everything, whether it -- ever seen -- >> grant administration -- >> by the greatest writer of our time steven king -- >> during grant's administration where they had certain impact on administrations. not as much as you think. >> grant always got played. >> you no that grant -- >> grant got played. >> naive about business. >> he was a great general. >> let me just -- the rivian story i was referring to, was $6.6 billion. it's a loan. it's a loan from the u.s. government. >> right. it's d.o.e. >> how to expand ev production.

it was an equity i want to make that clear. >> why do they need a loan from the government and volkswagen infusion? >> they're going to build this plant in georgia with 7500 employees. interestingly because a lot of these projects are being funded in areas that are heavily republican. and biden is trying to close the door on them as quickly as they can. >> rivian okay not building the georgia factory. i have to -- they have to be careful. new factory, as david said, is huge. i remember meeting with csx, right on their side, thinking it was like the greatest idea ever. csx saying i hope we can do it. it costs more than people realize. $6 billion doesn't build -- it does not build a giant auto factory. >> okay. $6 billion does not build a giant auto factory. >> but it's a start. >> yes. >> but it is a start. >> and what happened when i went to the lamborghini factory. go ahead.

i put a tick tack on the floor and ate it. >> you can't do that at a bronco factory. >> i put a tic-tac on the floor. >> next thing i know you'll be drinking fracking fluid. >> has a great consistency. >> which is formidable. >> the pumpkin spam juice was my greatest sacrifice. >> watching you drinking that spam thing was something that still just -- >> you didn't mind my chowing down on that. >> that was fine. >> tastes like a wendy's -- >> how is wendy's doing? >> delicious. >> uncrustble. >> want to tackle the nvidia clip we teased. >> it's time for the fugatto. >> fugatto is this -- i guess it's a technology. >> yeah. now the fugaise. >> going to help you, nvidia, says turn text into music or sound. take a isten to this. >> fugatto is the latest generative ai breakthrough from nvidia. this new model allows you to create sounds, speech, and music

from text and audio inputs. you can guide fugatto to create unexpected sound effects where familiar sounds take on surprising new qualities and invoke new experiences. ♪ ♪ >> it goes on later, jim, you can take written music and say, make this sound like an opera singer, jazz. >> it really is pretty amazing because this is all about what jensen huang -- jensen huang, the ceo -- >> that was his voice. he's voicing that. i believe that was him. >> he wants very much to demonstrate that this is a creative product. like what you can do with adobe and canvas so to speak.

i think that jensen -- >> they makes chips. how are they offering this product? getting it from the -- >> it's a software stack. all these people who keep saying -- >> i get it. >> this is a consumer product. how are they getting -- i don't know. they're not a consumer company. >> not at all. but you can go to dell and michael dell, you can get this and -- >> put on -- fugatto. >> yeah. you can get fugatto. if i were disney i would get disney. >> what affleck told you about the affects business. what would they be saying at sky walker sound? >> we don't know the strategy at paramount when he takes over but a lot of it will involve this. in other words, using ai in effective ways. affleck will tell you, you can't replace people and the creative process -- >> benioff said that -- >> you can replace plane

different things in the process of movie making that will make it more efficient. >> jensen is about making everybody to be able to be creative. just like adobe. you get that. we can have people sitting around trying to become the next sonhime and bingo. sonhime unbelievable. >> why is nvidia down 3 since the election and s&p up 3. >> nvidia had a lot of hot money in it and nvidia goes down when they report the quarter. a lot of people who are in it for the quarter because they had the quarter last year where the stock had one of the biggest advances in history. if they play nvidia it's going to happen again, and my advice is stop playing. be serious investors, don't trade nvidia, and figure out what nvidia does besides being my late dog. >> should they be in the software or short stack? >> they need to know it is a software company. that's what's so great about it and why it's not going to run out.

by the way, amazon, can we just -- if i have to read one more story about amazon doing an nvidia killer, tell -- ask andy jassy, during that friday. they're not -- they're trying to make enough chips because jensen says i can't -- i wish i could make more chips. i'm sorry. zuckerberg gets them and ai and -- >> musk gets them, xai gets them. >> they don't have enough. what's amazon supposed to do? say we're screwed. of course, amazon -- >> you're not creating a competitive chip to nvidia. >> amazon yet to endorse the amd chip. >> do you think there's weakness in nvidia as a result of what i discussed yesterday, deceleration and rate of improvement for these foundation models -- >> absolutely not. it's all about any one of what video is going to be and video is -- these people are not understanding video. the idea that you can go and look at every single picture

ever and then decide how to pitch a perfect game and be -- look, your son is a pitcher i mention it. >> he's not. >> he's a quarterback. >> he's a working man now. that's all he sgliz don't ever say your son is nothing. >> you know what i mean. he's not a -- no longer a -- >> he's scarred by that. >> he's no longer participating in organized athletics or college teams. he's done with that. >> i'm just saying -- >> moved on. >> nvidia not the company people think. nvidia is trying to figure out, as jensen did with this, how to do video and think beyond what we currently think. it can go down. it's up a lot. up more than almost every stop. palantir is going to be the one, and palantir is up a lot because i believe that musk is going to turn to them and say, the defense department, it's yours. it's yours. >> actually -- yeah. there's a good piece on axios this morning arguing vcs want to get involved with d.o.g.e.

because vc is hard at the moment and this is kind of new and exciting. >> it is. i think people don't understand that there are departments where -- look, i wish he hadn't put out the $2 trillion. that's too high. a lot of people who are worried because you get a -- you have a palantir come in and say you know what, we do the next level warfare. we don't do the current level. we do not put -- people in hardware in harm's way. okay. they don't do that. nor does air environment, which is that you don't put people in harm's way. that's going to be the next year and the defense department does not want that. they like big things. they like big things. >> yes. big things. >> expensive programs. >> big things. >> alex is not like that. i can speak for -- >> even with the new and dangerous world you would not be buying more northrop or lockheed? >> used a lot of big things in ukraine. drone warfare has been an important component of --

>> when you look at lockheed martin -- >> the conflict -- >> lockheed martin costs too much. he was terrific in american tower, but i prefer avav makes much cheaper drones. not as cheaps at drones that they're trying to make them what iran is doing, that's very hard. >> this is a warfare where the drones cost little and knocking them down costs an enormous amount. >> if we get the laser, we, being our team, our country -- >> laser? sorry. >> laser. >> i know i was just -- >> it's an old reference. it's a long time ago. >> yes. >> it is. austin powers a long time ago. >> no, i want you to die. >> stays with me, though. >> great scene. there is, without a doubt, have the cheapest weapons and palantir has the next generation of how we're going to do cyber warfare and the idea of just

hardware, hardware that is constantly over budget is the kind of thing that i think musk is after. i don't think he's after the corporation for public broadcasting. >> journal has a piece to look at nondefense discretionary it's 14 cents. >> you have to -- >> yeah. >> he's going to go after defense. >> unless they do make a move on social security in some way and medicare and medicaid. social security if you raise the retirement age -- >> that's what you have to do. you have to raise it to -- >> that's what you got to potentially do if you're going to -- >> 70 where you can finally have to start taking it. >> yes. >> they have to do that. they'd all know that. they have to find a way to be able to recall in bonds and they have not been able to touch the bond market. >> well this is in big play, criticizing yellen for financing the government at the short end and back to your discussions with mnuchin in the day about -- >> 50-year bond. >> mnuchin, saying do the

50-year. we can't because the ratio of this and that. i went with geithner. i used to call geithner, have him on, you have to do this. they laughed at me. all laughed at me. not unlike kerry with the travolta scene. >> christopher columbus when you said the world -- >> dudley after bessent saying a shadow fed is a mistake. winder also similarly coming -- sort of discussing the fed and the idea of replacing powell or like that. how important it's going to be to have fed independence. >> do you think warsh is going to get his holding place -- >> i had warsh in -- i had him in a parlay. i did. i had him at three tight ends to score and any tight end and him. good parlay. jason robins the only winner on my parlay. i didn't have -- i didn't have bessent -- >> draftkings. >> between rodgers and harvey --

>> okay. i'm a rodgers and hart. >> you are. >> what can i tell you. >> i happen to like them too, ella is so good, but i get my kicks -- >> young people are like what are they talking about? >> what are they talking about? >> young people. there's no young people watching us. >> that's not true. because when you talk about ethereum and joby. >> we didn't get to bitcoin this block. >> want to talk about microstrategy, barely down. >> the younger people call it mister. >> mister. >> that's how you identify. >> selling stock to buy bitcoin that gets valued on their balance sheet at multiples of the actual worth in the marketplace. >> why do you -- >> that's a great strategy. >> why do you hurt me, david. >> i would not hurt you. >> mr. softy and mister. >> know your acronyms. >> we are holding on to s&p 6k. dow down couple hundred points. watch bonds.

jim talking about the long end, short end. we're up across the curve this morning, not a lot. 10-year back to 4.3. stay with us.

we mentioned bitcoin before the break. take a look at the return since the election. of course, approaching 100k. didn't get there. the new commerce secretary designate. the world of crypto has changed. join kramer's investing club with a black friday offer and daily access to insights and stocks. get advantage of the best deal of the year going to cnbc.com/cramer. >> thank you. >> early christmas gift. >> why not. you can do it while you're watching a friday game on amazon. >> very nice. >> david's all set to watch the new york giant cowboy, that's the game, the 4:30 game.

>> yeah. that's a can't miss. >> you should go fry your turkey, catch it on, use gasoline and ms isthe game. >> thanks, jim. >> back in a minute. don't go anywhere. that moment you walk in the office and people are wearing the same gear, you feel a sense of connectedness and belonging right away. and our shirts from custom ink help bring us together. we make it easy to wow all your groups with high quality custom apparel and promo products, all backed by our guarantee at customink.com.

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it's time for jim and stop trading. >> we have a couple things going on. amgen, pretty adamant amgen is a terrific drug. i want to warn people the way the fda works, again, you buy eli lilly, there are other drugs that amgen has that will make it so that you might want to be in it, but i would be very, very concerned if you were banking on amgen to make stand here. they are adamant the stock is wrong. i have often found when you're talking like that the stock is right. >> how about tonight? >> i've got hp and we have to find out best buy is down big and this is the -- look, they have the ai pc. what we're struggling with other than marc benioff, the ai pc a failure? >> already? >> yeah. well you get -- you know you

get -- >> i thought they were just coming out. >> you have to ask -- you want -- >> who has one? >> remember the day microsoft added the button and said that was an important day? >> you are getting some early returns. cory barry says it's not. >> we're circling around marc benioff's comments about whether it works well. and i have to tell you that while i think this iteration doesn't. >> you talked a lot about the ai pc. you were all excited about it. >> not -- >> find you somewhat less excited. >> the movie "witness," i was wrong. safe in philadelphia. i was wrong -- >> how great. >> we'll see you tonight. "mad money" 6:00 p.m. gains on the s&p at least, 6,200 even wh a itlittle weakness in the dow names. don't go away. (♪♪)

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♪ ♪ welcome to another hour of "squawk on the street." we're live as always from the new york stock exchange. take a look at stocks. got a little bit of a mixed country. the s&p is higher by a quarter of 1%. the dow, though, weaker by almost 200 points. it tells you where the strengths and weaknesses are happening today. health care, financial, industrials, energy, they're all done. but there's strength in the market. utilities, communication services, technology. it's why the nasdaq comp is up half a percent, even though the dow is down 200 points and there are pockets of weakness in the . treasuries, how they've been handling the news. the ten-year note yield, a little firmer at 4.3, right on that level. and the two-year is below it.

here are some big movers we're watching. amgen plunging, but other glb-1 stocks moving after news out of the biden administration. and a lot of earnings this morning, including best buy, cole's, dick's sporting goods. and then rivian down, giving up big games from this morning. the ev maker getting a $6 billion federal loan to build a factory in georgia. the stock has now reversed lower. a pretty good diet ahead of even more tomorrow. rick santelli has it. hey, rick. >> let's look at consumer confidence for november. if we look at the headline number, expected to be up near 112, comes in at 111.7, the best

number of the year. that takes you all the way back to july to find a higher number, that's july of last year. if we look at the present situation, 140.9 sequentially higher, much better than expected. that's the best level going back to march of this year. and finally what lies ahead in the form of expectations, 92.3, sequentially higher than a upward revised 91.9 and 90.23 is the best level, going back to, and you have to go back quite a ways, december of '21. so pretty good confidence. real quickly, on richmond fed manufacturing, we have 13 consecutive months in a row, minus 14. and business conditions, the service side breaks a trend. it was 32 consecutive negative months. it comes in up ten, reverses that trend. and finally, new home sales for the month of october.

a huge year, october saw interest rates go up 610,000. we're expecting the number around 725,000, seasonally adjusted annualized units. this is the weakst since november of '22. and for more, digging down on that weak new home sales number, let's go to diana olick. diana? >> rick, i'll just reiterate, huge miss. but i'm not sure why the expectation was as high as it was. the 30-year fixed rate mortgage started october at 6.2%. by the end of october, it was 7.09%. these numbers are based on signed contracts, so that's people out shopping during the month of october, looking at the rising interest rates. we talk about the home builders buying down rates into the 5% range. but when you see rates go higher, consumers think wait, maybe i should pull back. it was right before the election, a lot of uncertainty. people don't like to spend during times of economic

uncertainty. the median price took a jump up, $437,300, up 4.7% year over year. the builders had been trying to pull back prices by building cheaper homes, but they have a lot of pressure for pricing. look at what we're talking about with tariffs. lumber prices are up 20% year over year before we heard about the tariff issue today, because tariffs jumped up higher in august to a 14.5% rate for softwood lumber, for canadian wood tariffs. so you'll see that go higher, hitting builders' margins, making it harder to build those cheaper homes that we need. last night, supply jumped up to a 9.5 month supply from 7.6 months, that's a lot of supply. builders have some supply that is for sale that they haven't started yet, so they could just not start those homes. again, it's a huge miss for the builders. back to you guys. >> diana, thank you very much.

big story in the markets is the tariff threat. look at the impact in the currency market, where the currencies of canada, mexico, and china are getting hit hard, especially the mexican peso. they are all considered the biggest losers of these policies that president-elect trump has laid out, again, 25% tariffs on mexico and canada. he did cite, though, drugs and immigration pouring through our borders. so a lot of people are looking at this as a threat for negotiations and this could be taken away. but there's an impact, and look at the automakers. general motors down 7% right now. clearly, they're considered in the eye of the storm, especially when it comes to those mexico tariffs, because a lot of these parts and cars are assembled abroad and have to be brought

back. >> phil lebeau covers the industry for us. about 30% of gm's north american production is from mexico. the majority what is built there is sold in the u.s. far more than ford, which is about 16% north american production out of mexico, sarah. so we watch gm, and obviously very strong performances during the course of this year is getting eaten into today. >> everybody is going to be looking at their exposures, because the threat is on china, as well. what comes from mexico, what comes from canada? here's my favorite chart of the day. it's how much of the canadian and mexican economies are shipped to the united states. in other words, how big their exports to the u.s. represent their overall economy. will you be my neighbor? no thanks is the title. mexico, we're talking about 27, 28% of its entire economy is

represented in exports to the united states. so that's why the currency is selling off 1.5%. canada, 20% of their economy, exported to the united states. now, these are the other ones. they don't even come close like ireland and taiwan, all below 10% of their own economy, as far as exports. so when we say canada and mexico are dependant on u.s. exports, that's what we mean. it's a huge deal. it's no wonder trudeau was on the phone with trump last night. clearly, this could be extremely painful, as david rosenburg put it, these two countries are royally screwed. >> mexico's new president has written a letter. >> which he suggests retaliatory tariffs. he says this can be followed by a tariff in response until we put all of our own businesses at risk, which is interesting, because the vast majority of fentanyl that is imported is

imported by americans at legal border crossings. so not sure what the end game is. >> the u.s. has the leverage here. there's no question about it when it comes to these trade relationships. and that is something that president-elect trump is playing into. and we knew this. this is what he promised on the campaign trail. so it will be interesting to seize whether these announcements have the surprise effects that they did last time. because we know he ollows through with this. the bigger question, what does this mean for the american economy, u.s. inflation and trajectory of growth? high frequency economics attempted to do a deep dive into this today. they said, you know, it will make the fed stop lowering interest rates in response to the tariff shock of this magnitude. >> and what was just said about lumber and home construction. >> which is a big if, if we get what he's saying. again, we went through this already during the first four years. and a lot of it is a negotiating

table, followed up by negotiations that do have a different end result than what he may have been saying. >> it's just hard to know. as an investor, as a gm, you have to game it out. >> there may be more behind this. he didn't mention the 60% on china. but that could still be coming. >> he's looking for concessions and laid it out on immigration and drugs pouring into the country. we look at how much mexican exports have increased. gm is a poster child in the auto industry, but it's not just autos. you can see that it's steadily increased. the top imports we get from mexico, electrical, electronic equipment, machinery, boilers, oils, technical and medical apparatus. >> really? we import them? >> yes, we do.

>> it's parts, we get a lot of parts. so here's the top exports or imports we get from mexico. we also have what we get from canada, which no surprise oil is at the top of that list. also vehicles, other than rail and tram ways. machinery and nuclear reactors are on that list, too. >> we haven't built a new one here in i don't know how long. >> bottom line is, we're trying to figure out what companies are exposed, which economies are exposed, and what would might mean. if the fed stops lowering interest rates, that could have a gdp impact. we know that this president and his treasury secretary elect, or nominee, they want to boost growth. they want to cut the deficit. well, tariffs could help cut the deficit, but unclear what that

would mean for inflation. a lot of people say the last time around, the trump tariffs did not create inflation, but they were less broad and blanket than these that he's discussing this time around. so unclear, i'm not speculating one way or the other, but we are looking at the economic fallout, and it could be seizable. >> bessant should be realistic about tariff's negative impact on growth inflation. >> treasury doesn't have sole authority, but as it relates to the overall economy, inflation is important. and strengthening the dollar a lot against some key trading partners. that makes our exports less attractive. forget about what retaliatory tariffs that could be. it hurts our economic growth and potentially the stock market. >> you can see it's an eight-week win streak on dxy.

our next guest predicts new tariffs on the president-elect, but not likely to derail global economic growth or boost inflation. he believes they will negatively impact mexico, and sees a year of hurdles for stocks. jeffrey joins us this morning. great to have you, jeffrey. good to see you again. do you believe we can safely implement some of these negotiations tactics? >> i do. look, i'm very a deja vu morning. in may of 2019, president trump announced 25% tariffs on mexico. 5% was going to be imposed on june 10th and increased until it hit 25%, until mexico dealt with illegal immigration. but the tariff dropped by the president a week later was never imposed because mexico and the u.s. came to an agreement for an enforcement surge on the border. that was part of the letter to the president this morning, that hopefully they can work together

and meet to address this surm. so i think, again, this latest tariff announcement is designed to extract concessions on these things. >> when you say "surge," crossings are near a four-year low. how low do you think the administration wants them to get? >> interesting. i don't think there's a hard number that the president is looking for. i think he wants to come across as having more of a rhetorical victory than a numbers victory. what could be worse for mexico is the deportations. i think that even is more likely than what we're going to see on the tariff front. if you take a look at this, that's 3.4% of their gdp if we put it in those terms. and the number of illegal mexican border population in the u.s. as a percentage of that, it's pretty high, meaning a drag on gdp in mexico last year.

>> yeah, goldman a nice table of industries that have a high concentration of unauthorized immigrant employees, ing, 19%. crop production, slaughterhouses, construction. you don't see any of that as being inflationary, if their workforce were to have a fifth of it removed? >> this is where the inflation consequences come in. no, i don't think the tariffs are necessarily inflationary. usually currencies adjust to deal with tariffs. so i don't think we'll see much this time, but you can see it through this deportation channel and affecting bor markets. that could continue to push rates up, which is why we have further expectations the fed may

not be able to cut much next year. >> as the global investment strategist at schwab, are you recommending buying any global markets or just u.s. outperformance as we have seen? >> here's the funny thing. the markets could outperform as a result of this. if you look back to 2016 after trump won, we saw u.s. small-cap stocks perform well. america furs irst policies were about domestic u.s. companies. the act opposite happened the first year of trump's term. in 2017, emerging markets were up 40%, followed by a developed international markets leading the way. lagging was small caps because global momentum in terms of evenings and economic poe poten went up. >> that's not consensus. interesting. >> no, it's not.

that's why i think it's an opportunity. >> well, we will watch it closely. gm shares down 7%. jeffrey, thanks. sure does give us a lot to talk about. as we head to break, here's what we have the rest of the hour. a lot of retail earnings and their latest results and what it could be signaling. >> shares of amgen are down, but other glp-1 stocks moving higher. >> financials, a number of nims in the group trading at new highs. although we do have a downgrade of morgan and stanley. that's when "squawk on the street" continues.

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welcome back to "squawk on the street." a lot of retail movers this morning. best buy falling after missing estimates. kohl's also missing expectations. dick's sporting goods also lower, despite its earnings beat. let's look ahead to the crucial holiday shopping season. joining us now is oliver chen, he covers kohl's. so oliver, how specific are these individual stories, do they tell us something broader about the consumeer? >> yeah, great to be here. so the consumer is really looking for thrifty thrills, very value focused.

what we would say is that there are cross currents. walmart and costco have had great mow men come. kohl's, it's the worst number since 2020. they have had a lot of self-inflicted issues, including not stocking into core product. this has been an earnings season full of winners and losers. walmart is our best idea for 2024, and the bottom line is that the consumer is being very choiceful and considerate, and looking for the best deals. also, i know you love fashion too, but clothing has been tough. it's been mixed weather, as well. >> right. we need some colder weather to juice that apparel, right? >> yeah.i think we're looking fo that, and hopefully has been difficult. what is have we learned about the impact of tariffs now and c especially the ones from china

and how they might impact certain retailers differently? >> this could weigh on earnings per share about mid to high single digit. the question is how much will be passed on to consumers. inflation is on people's minds. however, there is low unemployment, and there's about $1 trillion on the sidelines. so a mixed consumer picture, but retail is not a high margin business. so a lot of these need to be passed onto consumers. our stock pick is walmart, given it has the most scale to negotiate. about a third of the business is imported from abroad, but something we're all watching. given how tough retail has been. >> i'm looking at the best buy results in commentary. clearly it was weak for them in september and october. it's been a tough category. they cite distraction during the run-up to the election, i know you like that excuse, david,

particularly in nonessential categories and now that the election is behind us, consumer demand should increase again. do you expect that? >> we're hopeful, but that's impacted the department store channels, too. macy's numbers were better than feared but negative, as well. so that level of uncertainty being removed is a positive. and also, people will be watching the stock market. a lot of what will happen will depend on how consumers feel. that's been volatile globally. however, the u.s. has been better positioned than other markets. what we see in terms of these other big ticket items, electronics, home, that's still been a weaker category. costco has been able to buck the trend and doing well in discretionary. >> oliver, we're going to leave it there with your top pick being walmart. >> have a great friday. speaking of the consumer, tomorrow don't miss the interview with the ceo of

american express. doesn't speak out very often, but he's speaking now about the holiday season and small business saturday. we'll get the pulse of the consumer and spending 10:00 a.m. right here tomorrow. meantime, coming up, weight loss drugs are on the move. we'll talk about why. check out the selloff in bitcoin after coming close to 100-k, etfs posting almost 144 million in outflows yesterday. that breaks a five-day streak of inflows. bitcoin down about 2.5%. ayitus.

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welcome back to "squawk on the street." we have a lot of news to watch in the weight loss drug space, so to speak. bertha is tracking the names, all getting a boost new rule from the biden administration dealing with medicare and medicaid. but first to anjelica peebles who will break down the new data from amgen that the market has not responded well to. >> reporter: remember, we have been waiting months for this data, and what we're seeing is

not great. the company saying their drug produced weight loss up to 20%, and the street was looking for 20% to 25%. that's not a big difference, but in this highly competitive market, people did want to see more than 20%. and there was also a lot of focus on side effects during a call that they hosted earlier this morning. the company saying that people -- 11% of people dropped out because of adverse events, and that's among people who are in this group that increased their dose slowly. so it could have been even higher overall. but that 11% was a big focus, and like other drugs in this category, things, gi side effects like nausea, vomiting, amgen saying the majority of those side effects were seen after the first dose, and they think starting low and going slow will help reduce that. but, again, a lot of questions how competitive this can be. this is a monthly or less frequent shot, so that is a

differentiator, but the question is, how can they compete against lillian novo, who have a year's head start on them, and really, you know, again, how competitive can amgen be in this intense space, guys? >> well, sit intense, but it's also growing, anjelica. the weight loss from wegovy is equal to that 20% number, is that correct? even though youed ed administe more than once a month. >> reporter: that's right. the most we have seen is 22% weight loss, so this is comparable, but how can they compete when lily has had this on the market, and by the time amgen gets on the market, they will have had this dominance for years. you think about people just getting comfortable with the drugs they know and the price and rebates. so if you're a doctor, would you

prescribe a different drug when you know how to use wegovy and how to work through the side effects. that monthly dose is attractive to some people, but we'll have to see what they take for ward. they haven't said whether they're doing monthly or every other month. >> worst performer right now in the s&p. now to we are sha bertha ab biden administration. >> the biden administration is proposing requiring coverage for obesity drugs for medicare and medicaid. some states already cover gl1p drugs, but medicaid is prohibited by law. but ozempic and wegovy is approved, and biden officials say the reclassification of obesity as a disease chases the equation in medicare.

the medical consensus has evolved. the medical community agrees that obesity is a chronic disease, it is a serious condition that increases the risk of premature death. biden officials estimate that the cost for medicare would be about $25 billion over ten years, but the congressional budget office estimates it's about $35 billion, increasing direct costs from about $1.6 billion if you started in 2026, it would grow to $7.1 billion 2034. while savings from improved health would be less than about 50 million starting in 2026, rising to just about $1 billion in 2034. the timing of the proposal will put the ball in the trump administration's court to try whether to precede. we know that hhs secretary robert kennedy opposes gl1ps, he prefers eating well. >> this rule may not take

effect? >> exactly. it may not take effect. you might see some blowback in terms of them changing this criteria, the trump administration may not want to. it also comes amidst really a climate where there's some in the republican party who want to cut back on funding for medicaid to pay for extending the 2017 taxes. this would increase potential cost in medicaid by about $11 billion for the federal government over ten years, according to biden estimates. >> if we were to game it out and say it takes effect, what do you think the net effect is on pricing of the drug itself? >> that is the question, because there are a lot of folks who think that ozempic and wegovy could end up on the next round of ira price negotiations. so we have see a discounted price, particularly in 2027 in medicare. medicaid gets a count as well

on all types of drugs. so the fact you see more usage might ng the cost down eventually. >> bertha, thank you so much. still to come this morning, financials are the bester if -- best performing sector sense the election, as you know. can that rally continue in the new year? we'll talk about that after a eak.

nate jones... lines things up...

checks his fidelity app... looks to outside analysts to get a second opinion. nate likes what he sees... and he places the trade... talk about easier investing. welcome back. here is your krfx nbc news update. the israeli war cabinet is meeting to discuss a u.s.-backed cease-fire deal with hezbollah in lebanon. they began trading fire last october. the meeting came as the israeli military launched air strikes in lebanon killing 31 people. the chinese military saying it deployed naval and air forces

to shadow a u.s. plane over the taiwan strait. the navy said the aircraft flew in international air space, demonstrating a commitment to a free and open indo-pacific. a new report is slamming airlines for raking in billions in fees from customers. a probe from the senate on investigations found american, delta, united, spirit, and frontier brought in $12.4 billion of fees between 2018 and 2023, and $25 billion in baggage fees over the same period. the subcommittee plans to hold a hearing with representatives from all the airlines mentioned in the report next week. david, back to you. >> okay. thank you. financials the best performing sector today, doubling the gains of the s&p 500. our next guest sees four key catalysts ahead. joining us now is jason goldberg. i'm curious, what are the catalysts that you see ahead for

this sector, which has performed incredibly well. >> it has, but if you look ahead, you have this new administration coming in that's very pro growth and less regulation. and not only less regulation for banks and financials, but each more broadly. our expectation that will lead to improved loan growth, which has been fairly subdued. a pick up in capital markets activity, particularly for ipos and m&a, which are running well below long-term averages and increased share buyback as rules become more clear. and more importantly, we do expect less onerous supervision of the banks. we expect some civility and maybe some improvement on those fronts. >> is that all going to result in multiples that the market will be happy to withstand? >> we think increased earnings

expectations, as well as multiple expansion, and multiples have moved up a little since the election. but you're running in line with long-term averages, maybe a touch above. if you think about the outlook over the next several years, it could be a better than average outlook. unemployment running in the low 4s. positive gdp growth. you know, a measured fed. >> when you talk about deregulation, that has these bank stocks really excited. what specifically are you looking at? what is it that will unshackle these banks and lead to higher earnings? >> i think it's all of the above. but, you know, certainly the endgame proposal, they have said they will reduce the onerous expectations of those requirements somewhat, but we think there's more to come there. in addition, there's uncertainty around long-term debt rules, i

will liquidity rules. >> so over the last 15 years, the financial crisis each year, it seems things get more onerous for the group. even with just -- if they could look at everything wholistically, the group could behave more den official to the end markets. and lend more freely and openly. >> to that point, to the banks that are under stricter regulations, the ones that have to negotiate out of these consent orders, i'm thinking wells fargo, citi group, do they get a disproportionate bump higher because they are dealing with a whole other set of regulators? >> you still have to play by the rules. for banks that do things wrong, the regulators still have to come down with enforcement actions. it's more of a function of some of these requirements that got more onerous, relative to international peers.

you can see some rollback. for banks that kind of bend or break the rules, there's going to be consequences. at wells fargo, their concept order is from 2018, so it feels like that's long in the tooth, but we'll see where that shakes out. >> we expect that asset cap to come off soon, don't we, at wells? >> we do. expectations it feels like it's early next year. i think at one point people were saying it was going to come off in 2019, so we'll see. but certainly markets expectations, given all the work that they have done of the last several years, bringing you management, new board, new policies, personnel, that they're coming down the homestretch. >> yeah, we can see obviously it's had a very good year, and even five years not that bad. jason, thank you. >> good seeing you. >> he's been head down, trying

to fix -- deal with the regulation. still to come, future of sports investing. how investors should investigate the changing media land scape, and the emergence of institutional capital. and as we head to break, let's get a check on the markets. right now, the dow is down 300 points, but the s&p 500 is still positive, and the nasdaq is up half a percent. why is the dow down so much? goldman sachs, amgen, boeing, home depot. some of the more cyclical groups are getting hit today. back in a minute.

goldman sachs out with a new report on the future of sports investing. it breaks down several

categories, including valuations and influx of capital and women's sports. joining us to discuss is goldman sachs head of sports and entertainment solutions. best job at goldman sachs. great to have you. welcome back. >> thank you. great to be here. >> we were just talking about sort of the wave you caught in this coverage. now you're looking at ways to drive-in kre incremental reven. what are some of the ways? >> it's interesting. i'll start by talking about who we speak with, who our clients are. we cover over 100 clients who are team owners, and their perspective includes investments that they make from every league, across every professional league, they're investing in emerging sports, women's sports, globally. several clients have built a portfolio of sports related assets, and some are just getting started. so we're having a variety of conversations. i would say they have, as we

talk to many clients, they help inform the paper that we have released. and there are a few key things that resonated across the board. i would say central across most of the conversations was a focus on leading a winning team. and the virtuous cycle that that creates. and in terms of some of the specific themes that came out of the conversations that we have with our clients. one is around incremental revenue. so obviously, valuations have increased meaningfully over the past several years, and investors are starting to think about how can we ensure that we're creating incremental revenue. one of the first things is looking at real estate and the fan experience, in particular. you look at what the atlanta braves have done and the community impact it's had and the impact on revenue. many team owners are thinking about innovation and technology, the intuit dome, i think that's

a gold star in terms of the leverage of technology. the second place that we're hearing a lot of consistency is around women's sports. everybody is talking about women's sports. a couple of weeks ago, we had the honor of hosting a panel discussion with the commissioner of the wnba, and one of the team owners of the wnba team. we hosted a small client event, and the enthusiasm in the room around expansion teams, around brand and sponsorship, you could feel the momentum and the hands being raised around expansion. >> cathy is a frequent guest, we talk a lot about that. is private equity a path to invest, is that changing the game? >> meaningfully. you have to remember, it's only been five years since private equity has been investing in u.s. sports. over that same period, certainly the wealth creation, the pace of wealth creation has been tremendous. but it hasn't kept up with the

pace of valuations in sports. if you think about it in 2014, as media rights were starting to turn, you could buy an nba team for less than half a billion dollars. >> and they did. milwaukee was what, $400 million. >> today, the average valuation of an nba team is $4 billion. so it's a harder check to write, so private equity is filling a need that owners have. they talk about it in terms of consolidating the cap table, providing liquidity, and continuing to institutionalize the space. >> do you think that these -- the nba in particular, team valuations have peaked? >> i think the rate of increase may not be as significant as we have seen in the past. a lot of the team owners we talked to say there's probably just less downside than meaningful upside. but if you look at the pace of media rights, the fan

engagement, the ability to have additional revenue streams like betting -- >> and there's just scarcity. >> a scarcity value, for sure. >> is there a league in particular where you think there's a lot of unrealized value as yet? would it be women's soccer for example? >> those are great examples. the one place that some clients are starting to ask about is around new horizons, where is the next big hockey stick? there's some work being down around college sports and the disruption there. what is does that mean, work being done, with -- i mean, the nil money is changing everything. so if you keep going down that road, i guess -- i'm sure use as to where you get. >> i think that what the private equity firms are trying to determine is, from an athletic department perspective, where you have the impact of nil, you have this increased competition amongst the types of colleges and the size of the college, how

can those athletic departments create additional streams of revenue? and so some private equity firms are starting to create funds that lend to athletic departments in particular. those are starting to invest and provide that liquidity and creativity around additional sources of wealth. it's early for sure, but that's one of the topics that keeps bubbling up. >> those team valuations have risen a lot, too. i'm sure you get questions on that. >> it also raises a lot of questions, nick saban talked about how it's changed, just the character of kids that play. >> that's the balance we'll have to keep an eye on. >> nicole, thanks for coming in. >> thank you for having me. >> you can sign up for our cnbc sport newsletter, it covers the convergence of sports, business and investing. go to the website or just scan the qr code on your screen. coming up, the ceo of amber

com bi and fitch, it's been a big winner over the past two years. we'll be right back with the dow trimming some losses, down 257.

welcome back to "squawk on the street." walmart making headlines after announcing plans to end some of its dei initiatives under pressure from a conservative activist. it will no longer participate in the annual benchmark index from lbgtq advocacy groups, winding down a nonprofit that funded programs for minorities and committed to monitoring the marketplace for inappropriate sexual and/or transgender products marketed to children. guys, there's about eight points that came out in this agreement. it was announced by robbie starbuck, this conservative activist that is having

tremendous success pressuring companies on some of these what he called "woke" initiatives and rolling them back. a lot of these, i can tell you covering walmart, a lot of these programs were already something that walmart was looking at and working on. for instance, the center they created on diversity after the murder of george floyd. that was a five-year mandate. they fulfilled their mandate and were wrapping that up. but it shines a light on how big companies are dealing with this issue. and we have seen a number of them do it. walmart perhaps the most high profile example. they're not using the word latinx to them, something that starbuck came after. the racial equity training, they're ending the term dei. they use the term belonging, a belonging report. dei had become somewhat of a toxic word. but the bigger story here is that it's not just robbie

starbuck. he's lead thing movement ing th is catching fire. he engages with company employees, so it's hard for them to ignore, because it does represent a significant part of the employee stake holder base and how they feel about some of these policies and some of these things that have happened in the last few years. one of the -- as far as going after third party -- some of their third party sellers and finding inappropriate sexual content marketed to children, they did find evidence of this when walmart would look back on it. it was about a drag queen books aimed for children. so they're going to be taking those off online and off the shelves, and that's sort of representative of what i think a lot of corporate america is doing. the pendulum is swinging. >> you don't hear as much about

esg, either. >> they're having to find a different acronym to draw interest in and tend off criticism. >> now dei, esg, they're so politicized and have a lot of negative connation. "woke" another bad one. >> we're always awake, because we're covering those markets /7. a t more of that straight ahead.

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good tuesday morning. welcome to money movers. i'm sara eisen. today, president-elect trump's tariff threats, stocks and yields and currencies on the move. big focus as the u.s. dollar continues to strengthen. the impact on your portfolio and the economy this hour. >> we'll talk about the story abroad. >> and then how retail will feel the impact of tariffs. >> watching markets today, got some macro data to chew on. new home sales