the stock is up on the news. the company also saying they have to restore investor confidence. they will focus on the product group putting that at the center of what they do. joe? >> a final check on the markets, a little bit of time left. we have the futures flat for most of the premarket session. you can see right now we are up 21 points now. the nasdaq upticking a little and now we have the s&p up about three points higher. we'll be back tomorrow. make sure you join us. "squawk on the street" is next. good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber. coming off the best month of the year so far, a lot of news in autos, semis, media, tech and, of course, retail. our road map will begin with the shake-up at intel.

pat gelsinger is out, three years after taking on the hopes of a turnaround. >> stocks are coming off the best month of the year. shoppers logging nearly $11 billion in online spending to kick off the holiday season. and trump's new tariff threat and the bric nations if they were to act to undermine the u.s. dollar. the shake-up at intel, has lagged chips makers like nvidia. the company says pat gelsinger has retired and is stepping down from the board. leaders david zinsner and michelle johnston holthaus have been named co-ceos while they search for a permanent chief executive. one of those retirements that's effective immediately. >> 63, obviously didn't see it coming. maybe go down as the man who destroyed the most value of

anyone i can recall, maybe we have some others. >> there were others in the history of intel. >> that's true. salespeople had taken over previously, not to go after apple's business may have been a poor one. >> the decision not to go into high-speed chips, by the way, made by andy grobe, the most revered ceo of his era, but did miss entirely the graphics processing unit because he felt that all that mattered was the cpu. that's far and away the longer term. pat gelsinger was over his head. giant projects. he was terrific? what do you want me to say? do you know why the stock bottomed? someone is out. >> you were critical of him throughout much of his tenure until very recently you became more positive. >> let's focus on --

>> your point was the right one. he embarked on huge capital plans that required normous expenditure and it's difficult to sell a turnaround story that's depending on capital and can stretch over a five to seven-year period. it's hard to get investors to believe. >> david zinsner a seasoned ceo. this was a balance sheet issue. they spent so much. and zinsner will restore some of the luster of the balance sheet which is in tatters. >> on an interim basis, is that who you want to see? >> the difference between a stock and a bond. i think that gelsinger did have big ideas. you needed to have a balance

sheet, which used to be pristine and was unbelievably the envy of tech. >> well, not anymore. and it's not as if the road ahead is an easy one. in no way, shape, or form is that the case. those, by the way, who want to think, well, was there an activist here? i'm hearing, no. does this mean a deal with qualcomm could conceivably start to bubble up in a more significant way? no . this was about investor base, seeing what they can do. they will initiate a search. it's not as if this solves their problem, jim. >> they did get the money from the government. >> yes. >> the way i want to put this, i often talk about upod. ceos who under promise and over deliver. he may have been the worst

practitioner that i have ever seen in my career, and i will add, and i never deviated, nice guy. not once. did i ever deviate? >> you were consistent. you did seem lately to be warming, though. >> i said the stock was bottoming. david, i'm kind in defeat of him. >> in the release they are not as focused. they mentioned foundry and manufacturing. it would seem on messaging about products and the customer. they talked about regaining competitiveness and also a lot of work they say to be done in terms of restoring investor confidence. there is that quote. and then they go on to talk about the leadership of these two co-ceos, with urgency in

priorities, the product portfolio and optimizing operating capital. there are going to be a lot of cost cuts that maybe weren't put in place. >> they were spread all over the place. >> amd was challenging them in the server and the pc, their bailiwick. they owned pc. i think it is incredible that they are going -- they may lose, game, set and match pc. pat was outrageously promoting his competitor. his competitor. uh-uh. no. not there. >> there was an ak on friday that mentions the chips act grant requires the company to maintain a majority stake in foundry. >> perhaps the government was involved in making -- the timing

is very interesting. >> i haven't heard anything. you do have the chairman who certainly knows his way around. >> serious guy. >> i remember him at solomon brothers doing a lot of telecom deals. very active as chairman of this company. >> gelsinger was a lifer. spent 30 years at intel. zinsner is a micron guy. >> that's one of the reasons i like zinsner. he went from micron to there, there was a lot of crowing because he wouldn't have gone. micron high bandwidth, commercial, we'll get hat. that's directly against micron which i think is ill-advised. it's shocking because he was doing -- right now, last week,

doing plans. he certainly did not see this coming. >> he tweeted yesterday saying, i will give thanks with my whole heart, which now in retrospect seems prescient. >> religious man. >> he was clearly -- this was not part of the plan. what about the stock now? you said you had been warming up to it a bit, which wasn't the worst call, by the way. you've been negative. i do criticize you often. you have been dead right on this. >> called it questionable. questionable re. >> they got passed by and still, by the way, pat gelsinger, had a way to believe the power of chips would keep doubling and doubling. jensen huang, ceo of nvidia.

pat was insisting it was very much alive and i just think it has to be -- it's important that people get more realistic at intel about gordon moore's legacy. that was a great view but has been passed by what jensen did. they couldn't keep up with amd. lisa su has come on and taken business since michael dell came public. >> we go back long enough to remember when they wanted to keep amd in business. >> we used to joke, and i'm familiar with the board members, they needed to keep amd in business so justice didn't go after them. ftc would have gone after them big time. lina khan never filed suit. she went against microsoft last week. the day before inauguration,

just say i'm going after -- i'm going after the mag seven. initiate mag seven ftc action. >> unclear whether the trump administration will follow through in that investigation -- you know. >> are we done talking gelsinger? >> there's the bridgewater moves on chips. we have these new export restrictions hurting some lamb research. >> it has been pounded. i remember when they lost $2 billion in china orders. never complained. never explained. henry ford. same thing. never complained. >> don't complain. >> not privately, not publicly. privately i begged them to complain. no, we're a compliant company. >> we'll get to that and how it pertains to china, a lot of macro data as well when we return the president-elect's latest threat about tariffs aimed at theic rs.

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holiday season continues after a strong black friday. got a bunch of numbers, jim, looking at how we did overall. one of the themes is in store kind of struggled. >> wow. in store, not even up 1%. e-commerce, harvey finkelstein, this is the time for online. shopify doing incredibly well. >> isn't it always the time for online? when is it not the time for online at this point? sorry. i mean -- >> i'm just trying to report the news. >> you're just trying to fill time. >> that's my whole point. i'm trying to kill time until when? until a spinoff occurs?

>> we'll help you kill the time. >> you always have to be so violent. >> here's the thing, the e-commerce -- a lot of people talk about peak, peak nvidia -- >> right. peak. >> peak nvidia. >> there will never be peak e-commerce. >> no. there may be. at a certain point -- >> whether we go into stores again. >> simon properties will go back into stores. >> there is store traffic, no doubt, and there always will be. we sat here having these same conversations. >> you're right. i do think the door busters, whatever, again, you have a friday game and there's amazon and you're just like, okay, i'll go shop amazon. i can't take it anymore.

the new iteration, by the way, of alexa, is going to be incredibly conversational. right now you say, alexa, play there, and alexa doesn't know jack. the new alexa will control your schedule. >> crm did have cool numbers, the percentage of retailers with an online a.i. chatbot up 31, and those who had one saw conversion rates, i think, up nine. >> there's an interview from bookings and what's incredible that are better than the human. that's going to be salesforce. he didn't mention salesforce by name but open table is salesforce. i do think this is -- the secret weapon will be people who do things for you that you will be replacing. >> you've been talking about a

ai-gentics. >> i played it this weekend. >> we will eventually have our own agents, i suppose, as people. >> our own robot according to musk and our own agent according to benioff. benioff -- that attack -- what was that? love thy neighbor. >> they are going at each other a bit. >> rich people are incredible. >> it's not even rich. when you talk about musk, rich doesn't capture anywhere close. >> capricious? all powerful? >> i like that. lex luther? >> even more so. i think luther would have run in fear. there's benioff. >> they both quote the bible.

david, quote the bible. >> okay. yeah. they're feeling it. >> what is that? that is so unprovoked? >> a political nature as well. >> benioff -- >> how old? >> 6-0? >> no, 5-0. >> oh, lynn benioff. >> i'm trying to kill some time. can you read the scores. >> i sadly watched the new york jets play a football game. i don't know why i made that mistake. >> woodrow wilson had a good day. >> woodrow? >> his last year as president. >> dominant. >> they were vicious. >> that's a really good team. you're starting to feel it, aren't you. >> you give saquon the ball, you never have to pass. i got tired.

>> the d was the star of the show. >> coming up big. >> i think we killed more than 40 seconds. >> i'm a buffalo bills fans. >> how is your dog? a new york state fan. do you like the empire team? >> my father grew up in buffalo. it will be a generation until i have a new york city team to root for. >> we've killed so much time. >> rodgers is not that good a quarterback. >> intel is not commenting anymore. >> it was. he missed wideopen wilson in the end zone. could have had the price on wilson. >> just for the record, i like coolidge and harding more than wilson. >> we'll get cmes d rar'madash and countdown to the opening bell. a lot to get to on this monday. a look at the premarket as we're about two shy from the flat line.

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welcome back to "squawk on the street." about eight minutes before we get started with trading here at the new york stock exchange on this monday. let's start talking some stocks, other than intel at least. marvell, a bunch of others. >> matt murphy this morning, the

ceo, announced expanded strategic collaboration with amazon to enable accelerated infrastructure for a.i. why is this important? first, right here, matt murphy bought $1 million worth of stock. i went out and said, listen, these are the insider buys you need. not 300,000 to paint the tape, so to speak. they have been a partner for real. they don't talk about it. boom. michael dell doesn't talk about it either. he's humble. humble. this is the thing they are looking at. the semis that are not pick over. this is what i call a juggernaut. >> they report tomorrow. i would assume -- >> we don't know. >> -- there's an expectation guidance will be okay? >> we don't know that.

we just don't know that. i would tell you that we are looking for semis that are not just endlessly talked about including intel which turned out to be focused on that, you phone cussed on the wrong horse. >> yes, you did. >> 17 lengths or 23 lengths, whatever that was. >> i told you i went to secretariat's grave. >> did you? >> yes. at the horse park. >> the best. secretariat. >> none like it. like nvidia. >> like nvidia. we have an opening bell a few minuteaws ay. you can catch us anytime and anywhere by listening to and following the "squawk on the street" opening bell podcast.

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we are back. we are on course. we've just launched the best product in the industry. >> is back good for -- can you -- are you sacrificing margins in order to be back? you know how wall street is.

walmart sacrificed margins and eviscerated it today. >> the guidance we gave, exactly what we just said, jim. i set margin guidance that we clearly believe we can meet and beat over time and that gave us enough capacity. >> those are your numbers. >> these are my numbers. we're committed to those, and we said we are going to grow this company. this is going to become a growth company again, leading in technology and growth again and the product machine is starting to deliver. >> gelsinger on with jim on "mad money." >> gross margins collapsed not that long after that. it was really rather dramatic that the margins collapsed. i think people didn't realize how fast things were going. david, we have news for super

micro, directly involved with nvidia. everything is just moving so quickly, and super micro, the ceo is very positive. >> super micro completed that review by an independent special committee. interestingly aided by the forensic accounting firm secretariat advisers. who knew? that we'd be talking about the great horse and there once again. >> they'd better be really great. >> no evidence of misconduct on the part of management or the board of directors and the committee acted independently, no restatement of reported financials expected. those are the headlines from this release from super micro that is out just a few moments ago. there's a lot more here, guys, we need to go through in terms of specifics they address. much of this, not all of it began when their long time

accountant ernst and young re- resigned and said they couldn't support the financials as reported at the time and stocks plummeted. >> the special committee is one person. >> i was going to say the farce is what you have to focus on. having, unfortunately, been involved in some situations, government does not like self-exoneration. the ftc will call you and say, oh, really? that's the committee? they might send a release out saying there is no special committee because the government does not like self-exoneration. the government likes to investigate itself. they like a little secretariat. >> they do. they do. you want to do the honors before we continue? >> at the big board today gilded active wear, celebrating the next book by dog man.

big jim begins. >> i've been so busy lately. i think this is quite a day. you're going to see winners win. what a cliche. nvidia was down 2 bucks this morning on a story out of commerce that somehow they were going to be involved and they do have good china business. you put a governor on an electric bike, you can't go fast. on the latest nvidia chip and selling that well in china. the fact is that you just keep distancing yourself from the crowd if you're nvidia, and i still think and you're going to have ben on this morning? >> yes. >> i think he will speak positively about nvidia. he has been the other guy. what? what's so funny? >> it is funny to your point about special micro when you tred speak about a special committee, that is people. but it's susie giordano.

i don't know if she was assisted by a.i., an independent member of the board of supervisors, an experienced attorney. she joined the board in august, this last august, to lead the special committee's efforts independent from any existing directors. the special committee was one person. that said it i would refer people to a press release i'm still going through and i'm sure others are. ed company's chief financial officer had a responsibility for process lapse s, but you can se the republic taking place. this has been going on for some time when ernst and young said we're out of here. >> the interlocking people and

all the deals made are just ridiculous and i think this is not necessarily going to be the end of the situation. i think there needs a further house cleaning. ernst and young resigned, they did bring in another, but i think it's a longer term thing. it's not done. >> special committee did not see any evidence that anyone tried to circumvent control restrictions. >> that was never the issue. >> might be diverted to a prohibited end use or location. that's one part from here as well. they are getting a new cfo, a chief accounting officer, a general counsel, expanding the legal department.

recommended by the special committee, or i should say susie giordanno. >> a committee of one. that's a cbs show. committee of one. did you see that? >> you're holding a meeting of the special committee, do you go into special chamber? do you have to do it in a special location as a special committee? and you talk to up self during this. you say, susie, what do you think about this? >> it was a robust discussion. >> as long as we're tracking executive shuffles, i count intel, smci ceo, the bumble ceo today and the stellantis -- that's four. >> that feels like, i can't take it anymore. i give up. you take over. here's a hot potato. you take over.

it's down 50% for the year. that is often a tell of what could happen, down 50%. the market is up, the best year in three and you're down 50, that's a tell. we didn't talk about kingsbury being out of kohl's last week. >> we did but you weren't here. >> i was having the time of my life playing in a pickle ball tournament. >> if it happened but you weren't here, it didn't happen? >> that's exactly right. >> that's what i thought. >> i think kohl's is on a particular watch i don't like to see. they did have a kohl's cash commercial during football. i'm worried about kohl's. exist ex. other than sf ephora, why shoul we go? >> it has a $7 billion market

cap. >> what size i have to go? >> i just got the word, 2.5 billion? is that the deal? >> it's very small. >> we do have a couple upgrades in retail. jpm ups gap. >> richard dickson is killing it. he's taking shares seven quarters. the stores are magnificent. even banana republic has never looked better. i have spent a fortune at banana republic because it looks like ksh. >> and tjx has been the winner in that group. ross stores had a catch-up quarter. tjx reports it goes down three points. they have no idea what they're doing and you catch seven. club name, tjx.

bingo. >> shares of tesla are up again. >> tesla/netflix? >> just tesla. you have to wonder if it's the musk effect, the influence he's bringing to bear within the incoming trump administration and what that will mean. a lot of coverage in the journal about concerns about lde other companies that may not be on the right side of musk and how you get there and whether he will target them specifically as you mentioned earlier, sam altman the leader of openai which is in open litigation, new litigation, with musk as well. they're suing them now to get an injunction to prevent them from becoming a for-profit company. this will only continue but there's a lot of jockeying, guys, in terms of getting access to the incoming administration. >> is it a shadow government?

>> well, you have musk on his own platform accusing private citizens of treason and saying they're going to pay the appropriate price. how seriously do you take it if he is an instrument of the government? >> i think you take it plenty -- plenty serious. we have a new kind of government. taeps not even in yet. immediately, by the way, trump attacks the justice department. the justice department was going to crush the guy. i thought that was not real. >> an upgrade of tesla. part of the thesis, jim, is there is a doubling of tesla enthusiasts. >> zero percent finance in china in order to be able to move cars. nobody cares about that. it's about authentic support for trump likely doubled tesla's pool of enthusiasts. buy it because you voted for trump. >> if legacy oems continue to

retreat, market share gains. >> back to stellantis. >> do you think ford's warranty issues have gone away? >> we've seen the market share statistics and sales domestically in china going up substantially. byd the largest maker of them in the world. >> we have to pay attention in mexico. mexico is fighting back. trudeau goes to mar-a-lago, not mexico. sheinbaum comes backfiry response. >> the president of mexico. >> have your currency wrecked or go down and beg and have your currency wrecked? >> one of the concerns is the beer business which you know quite well. >> tell me about it. just a margin killer.

my wife has a mezcal business. it's going to hurt the gross march margins. >> i would think so. >> you cannot get mexican agave from america. mezcal and tequila. >> can't we start growing it in the united states? >> it's like constellation. bill noonan is on, we make the best mexican beer. do you want it from flint, michigan? >> pennsylvanian agave. >> brewed on the shores of the chesapeake bay, mexican beer. you never knew that. right out of pueblo. >> my beer is the ry beer rind goals. >> that's like peels. constellation is down again. what are they going to do? where are they supposed to make modelo? tell me. milwaukee? buffalo? >> i can't tell you where.

how about buffalo. labatt. >> they have beautiful water in buffalo. >> they have a lot of tall buildings. >> i came for the waters. >> how does it only snow in the stadium? do you get that? it doesn't snow in buffalo, it snows at the stadium. >> they bring 15 people in. >> i thought coverage it have the game they did well. >> i've been spun off. i've been relegated. >> you're embracing -- >> i'm going to be in dover. >> i did not know that. >> we're going to be a rocket ship. >> we're going to be playing for the raiders or for the bears? which is worse? >> it was a good weekend for north american box office.

thanks to "wicked" the most profitable movie based on a broadway musical and "moana 2." >> let's talk about disney. >> do we have to? go ahead, i'm kidding. >> he's mentioned in the musk piece, iger is. >> well, from in terms of how he mass typically approached people he views as an enemy. he likes having enemies, musk. we should devote an hour a day to musk. >> a treaming show about musk would be amazing. >> instead of "survivor," at the end of every show, whoever he's been attacking says, ain't got nothing for you. >> in "the journal" piece he talks about liking enemies and

sometimes says i have too few. >> novel approach. >> what he's able to accomplish is truly extraordinary. >> he tried to get on the good side. >> it's two sides, both. i've spent a good amount of time talking about sister a.i. what he did in memphis, nobody has ever seen anything like it. >> going to take over the world. >> there are the duality. >> can i go back to disney for a second? >> disney has the best chart in the book. bob iger has turned the darned thing around. linear is break even. they have six, they're going to have -- look at royal caribbean. look at that stock. >> norwegian and carnival are the number one names today. >> bob iger was involved in "moana 2." that number was so great you have to start thinking maybe

disney is up because it has a franchise ip, david. >> not to mention the tsa said sunday record 3.08 million american travelers passed through. >> 21 times next year's. i'll take that one. iger doing fabulous. synonymous. >> glad to see. we debated about the proxy fight and i was trying to argue one side and you were arguing the other. >> i was arguing the wrong side, the side that lost. but there's a lot -- carl, this is probably the most exciting first day of a month i've seen in ages in terms of the buys, sells and reiterations, and i think we're setting up for a strange month where bonds, interest rates are too low, and maybe the stock market has to rest, but december is an incredible month. >> you said best seasonality you can recall.

>> it's set up to go higher. i keep thinking can we really be alone in the world going higher? then you have a president attacking brics. i think brazil was trying to get that special currency. >> we do have strength -- >> look at that, gelsinger out. >> intel shares a moderated there, at least presession gains. we do have gains in apple and meta. >> apple is worth talking about. >> amazon is up 1.5%. nvidia is up 1.2. the nasdaq is actually moving at a higher than is the s&p. >> exxon enterprise, i think we have to start thinking about apple. the theme about apple and it's not china. it's not the stupid trackers they do, verizon. what are they doing to try to stop t-mobile? it is endless the ads. people don't count on the fact you take a hammer to your iphone, you get a new iphone. verizon are desperate men doing

desperate measures to stop t-mobile. it's t-mobile and at&t. >> at&t has an investor day tomorrow. >> it's going to be positive. you were positive and i was lukewarm. when they cut the dividend, i took it personally. >> yes, you did. you felt you had been misled. >> it was a long time ago. i like gelsinger. he never misled me once. he didn't. delusional. >> delusional. >> what's the matter with that? you know what trump says, he says things that give us a lot of cover. we can say anything because of trump. >> that's probably actually true. he did seem delusional. >> he had delusions of grandeur. >> what did he fail to appreciate, therefore? >> that his company was shot before he got there. and we should remember that, the

downfall of intel -- >> it took place before he waungd through the door. >> it was not in the stars. it was in themselves. >> not even bob swann. >> swann was a significant part of the downfall, yeah. >> who was the one -- >> never talk about the guys who really -- the finger should be pointed at. >> the work of one person and they don't take place -- >> the last good ceo they had. >> that's what's fascinating you put amd versus intel or an nvidia and the moves these companies over a long period of time, the decisions mount, the poor decisions mount. >> people were doubting lisa su. the stock stalled between 130 and 135. i think this is a sign that everybody, hp, dell, they're all going intel -- i think leaning intel. >> intel will be sold for parts eventually? what? >> we have to talk to your buddy at qualcomm. maybe it comes back.

>> china is really tough. >> some of the pmis at the bottom of your screen. for more, let's get to rick santelli. >> reporter: this is the manufacturing pmi and it's a final reit. we removed the mid month reit which was the best going back to july of this year. but it did improve, 49.7. it now moves back a month in its comp. it's the best number since june, and it's still the fifth in a row under 50. when was the last time it was above 50? you guessed it, june, when it was slightly above 50. we have construction spending at the top of the hour. interest rates are up. friday we saw them drop. back to turkey day, we're basically unchanged on a two year. up half a dozen in a ten-year.

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the final month of the year now under way. take a look at some gainers for the full year so far on the s&p. vistra, no surprise, leads the list. nvidia is number four. go down the top 15 or 20, ual is number six. royal caribbean, godaddy, netflix, ge aerospace on the list. >> winners, these are all fabulous. palantir, that's alex carp, what can i say? he likes enemies. who has more enemies him or musk?

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the hottest area in finance. the stock is down today, and if i didn't just mention, i would probably buy some. >> they're very focused on alternative investment management. and they are going to get bigger in private credit, no doubt about it. the stock has done poorly in the last month, but one of the greatest performers of all time. i think it's a great buy here. if they split it, people are tired of buying thousand dollar stocks and getting one share. they hate that. >> profile splits this year. >> yes. >> what about tonight? >> so i have crowd strike on. i thought the quarter was great. what do i know, i couldn't believe how great it was. and kurtz put it all together, and people have the audacity to sell the stock in the quarter. and harley, look, today is the day that small business does very well in ecommerce, and i urge everyone to buy small.

i have bought a bunch of things for my wife. and they can't be taken back to the mall since the mall doesn't have good numbers. >> watch cloudfair, by the way, the stock is on fire. working on that. . >> jim, we'll see you tonight. rereefoney," as pat gelsinger tis fectively immediately. stay with us.

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good monday morning, welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla and david faber, live as always from post 9 at the new york stock exchange. stocks kicking off with a mixed picture. s&p is up a little bit. the nasdaq is starting trong, up 3/4 of 1%, and why the dow is

lagging. most cyclical groups are under pressure today, energy, staples, health care, all of those sectors are a little bit lower. tech outperforms to start it off. super micro is a part of the story. chip stocks, tesla is higher. lululemon is higher ahead of earnings. intel, after the transition of the ceo announcement. that's why you have a mixed picture today. treasuries, let's show you how they're kicking off the week. there's been a lot of buying in treasury lately. that reverses selling today, with yields a little bit higher. the ten-year yield, 4.23%. after we got on friday to the lowest level on the ten-year since before the election. we're 30 minutes into the trading session. three big movers, intel ceo officially out. shares are rallying. we're going to get the street's reaction to the news and discuss what comes next for the struggling chip maker in just a few minutes. retail front and center after

sales estimates from adobe, mastercard, shopify come in positive for the holiday shopping weekend. and today a big day for online shopping, and long time tesla bearer, roth capital upgraded the stock to buy. meanwhile, stifel raises its price target by more than $100 to $411 per share. a lot of capitulation. >> isms and construction spending with rick santelli. hey, rick. >> indeed, construction spending for the month of october expected to be up a couple of tenths of a percent. it's coming in double expectations, up .4 of a percent. and that follows at least right now unrevised up .1 last month. this makes this number the best month- month-over-month positive change going into april this year. ism, manufacturing for the month of november. 48. 48.4, interesting number.

better than anticipated, sequentially higher, the best since june. still the eighth consecutive number under 50. if we look at prices paid, it is over 50 at 50.3. it is much lower than expectations, which in prices paid is a good thing. 50.3 is the lightest level. just going back to september when it was 48.3, and that's quite important is that we've seen some lower numbers. it is still moving in the right direction with respect to where it was last month at 54.8. new orders, 54.4. that now breaks the seven consecutive readings under 50. obviously being over 50, 50.4 is the best read going back to march when it was 51.4, and finally, employment, which is important because at the end of this week, we'll be getting the big jobs report. 48.1, better than expectations. like all the other numbers, sequentially higher, prices paid

and at 48.1, it is the sixth consecutive read under 50. it is the best read since it was over 50 and that was in may when it was 51.1. we see interest rates have reversed some of the friday drops that we saw that sarah was referencing. we're up about half a dozen basis points on 2s and 10s. sarah, back to you. >> kicking off the week with good economic data. thank you, rick santelli. as far as what else is coming this week, we got the jobs report on friday, as rick just mentioned. we'll get some of the adp private sector reads. reads on services a ton of fed speak as well this week, and some important consumer earnings. kroger comes at the end of the week, lululemon, campbells, hewlett-packard, enterprise, the beige book, which is good color from what the fed districts are seeing across the country in terms of inflation, and access to lending. and the economy, the fed pays

close attention to that. guys, the biggest story in my world over the weekend is the truth social post we got from president-elect trump threatening the bricks about the u.s. dollar. i'm going to go really deep on this. >> oh, boy. >> here's what the president-elect says, the idea that the brics countries are trying to move away from the dollar while we stand by and watch is over. we require a commitment from these countries that they will neither create a new brics currency nor back any other currency to replace the mighty u.s. dollar or they will face 100% tariffs and should expect to say good-bye to selling into the wonderful u.s. economy. so there are some questions still about how that would actually work. what would quantify or characterize a bric country trying to move away from the u.s. dollar. i would point to the far left president of brazil who openly talks about every time he gets the chance why are we dependent on the u.s. dollar. we should create a brics

currency. one of the biggest losers in the trade, 1% move higher against the u.s. dollar. the dollar is stronger against all of them. it's jumping. as president-elect trump makes this a priority, and a strategic goal. and look, he's right to do so because you've heard us talk about the exorbitant vilege that is the dollar. everybody wants it. everybody holds it. everybody trades in it. what does that allow us to do? it allows us to borrow cheaply. it allows us to put economic sanctions on our adversaries, like russia. it allows us to finance our trade deficit. there are lots of reasons. it also draws in a lot of capital and investment into the u.s. economy. so i thought i would take the opportunity to show you what's been happening. is the dollar really at risk of losing this international prized reserve currency status? you got to go to the ifm for the recent charts on this. what they show you, there's good news and bad news. so the bad news is as far as the

world holding dollars, central banks, governments, it is a lot less than it was. we have the u.s. dollar share of fx reserves. in the early 2000s, it was 70% of the governments and central banks that were holding dollars. everyone wants to hold it, and that has gone down, it's now 59%. so why? here's the good news. the good news is that it's not necessarily that any one currency has replaced it. euro came into being. euro is the number two most held. dollar is still dominant there, right, just below 60%. euro, 20% hold it. what's moving up is the rmb in china, but still it's just a fraction of what's held by these governments and central banks around the world. they're holding more australian dollars, singapore dollars, diversifying away from the u.s.

dollar. it doesn't represent any one major threat, and certainly the brics currency, which doesn't exist is not a threat right now. but the intent is there, and i think that's something really important that president-elect trump is getting at. >> okay. >> yes. >> but should we be good stewards? >> we should. >> clean up our debt. >> yeah, of course. we should not, like, barrel into an economic crisis or a debt crisis or make people lose faith in the u.s. dollar. we should not go to the brink on the debt ceiling every time, which raises questions about the full faith and credit of the u.s. government debt. of course. but the bottom line is they still want the u.s. dollar. now, the other way that the dollar's sort of status is threatened is trading. i just did the holding, but there have been more trading -- when china and russia trade oil, for instance, or trade goods and they only use the chinese currency, that also represents a

threat. and that's something that chinese has made more headway on. in fact, about 30% of all of china's trade is now denominated in its own currency. the good news is it's exclusively traded with china. it's not like global trade. china is a big trading partner for a lot of countries. this is something else that president-elect trump is serious about could police when it comes to other countries going around the u.s. to buy goods and services in their own currencies. >> as a percentage of global payment transactions. >> it's tiny, yeah. >> the dollar is more widely used now than it was in the early 90s. >> the rmbs is 4% of global trade. again, below 5%, and the dollar is still dominant. and the dollar's value has increased, which is why it also has been fine. but the trends, you know, show that some of these countries, and you have heard this, you have heard this from lula and the brics.

>> it was more about a shot across the bow, specifically to brazil and the relationship that china is trying to create with brazil. >> yeah, but china and russia also is another big one. i mean, if you look at the data since the war in ukraine started, the transactions in china's currency has gone up because china and russia are trading without the u.s. there's the chart in the middle, the rmb, and then where it shows you that line in the middle, that's when the war started. it's climbed. but again, it's just with china. >> and then the journal piece looking at how china is studying russia's reaction to global sanctions in case there were to be, say, an invasion of taiwan, how best to circumvent the sanctions. >> the theory from the u.s. government is that that would turn them off. you don't want to be shut out of the system for dollars at this point, while the dollar is still king. >> let's turn to one of the big stock stories, intel announcing that pat gelsinger is stepping down as ceo after three years. the chip maker announcing two

leaders, david zinsner and michelle m.j. johnston, while the board searches for a new chief. the head of technology research at melius. ben good to have you back. welcome. >> great to be here. >> it's not surprising that he's gone. maybe a little on the timing, but in terms of the story, we need something to get in there that's going to assuage the u.s. government, and get them confident in the story, and that could get kind of interesting. but we don't know what happened in the back room, what prompted this at this impact juncture because he was pretty visible the last few weeks with a lot of things. i mean, the c.h.i.p.s act money. he got almost $8 billion. we have to see what it uncovered. it's clearly going to mean greater focus on products, where they have been losing ground, on data center, and too much focus on the foundry.

maybe that was part of the friction. we're not sure. >> do you think there's enough in the story to create a narrative that there is a rebirth, as opposed to say, just selling it for parts as we have been talking about this morning? >> no, i think not. that might have came and went with the piece, not getting a lot of traction. there's a lot of debate on who's going to have the leading chip there anyway. i think in general, the rebirth was also, took a big step back with the gowdy chip which never really got going. they had to cut the guidance and that was a flop. not that anybody believed it. the fact that that could get going. the story was always kind of looking at book value, you know, tangible book, where it could bottom and then seeing if we could sell off some of the parts and then get some time to get this foundry thing going, which has a ton of leverage, tons of capital intensity, and then maybe hit it right with a product, get upgrade cycles in pcs and servers. that's really the story.

they got to get that going. >> that takes years, ben. you know far better than i do, years, and investors don't have years. >> we don't have months, do we? >> so, yeah, it does take a long time, david. the foundry endeavor, there's a reason one great foundry, and a bunch of people trying to do it that can't do it as well. that's tough. they had to do two things. they had to try to be an nvidia amd and try to be a foundry, and it just proved to be too much. >> the instincts in buy today, right? >> i think no. i think there's just too much unknown. we don't really know what prompted this. i think the stock has been forming a bottoming process, even before this. based on book value and potential turn and server and pc, we have to see exactly what prompted this, but perhaps what could really help is that we find a more asset-light approach to foundry, and then we get

ready for a turn in some of the cyclical markets. that would probably be a best case scenario. >> if intel were to go away and be sold for for parts, what would it mean for the ecosystem? >> it has an impact. first of all, amd should be up on this, and i think it is is that every billion dollars that intel gives away in market share and data center is up to $0.40 for earnings and probably more. amd has been gaining share anyway. they're going to continue to do well, and this could be a big gift for them if this continues. look, in pcs, it's going to take a while for them to go away if they go away at all. pcs, they have a foothold, the enterprises are integrated into an intel architecture and they dominate. michael dell has been a big supporter since day one. it's going to take some inertia to go away in pcs if it does at all, and i'm not rooting for it

to do so, by the way. pat was a friend, and he supported us at melius, but this is not -- you know, this is a little bit of a sad day too. >> were you disappointed in some of the commentary around the ai pc last week, just as a notion? >> oh, yeah, ai pc, look, it's been a flop so far, and the reason is there's no killer app for it. so, you know, you built a lot of silicone with no home. there was a killer app called recall by microsoft and that was so you could search anything you did on your pc, call it up, and frankly never forget anything for the rest of your life. well, now that feature might come out next year, and it has to be activated by an i.t. person. it's not a default, which means there must be concerns about security. so until we have more apps that make it so you have to upgrade, then, you know, the pc, it's a lot of horsepower with no home, so what we now have to hope for

is expiration of windows 10 in october of next year, drives a corporate pc upgrade cycle. >> there is a bit of a wait in this whole m, and a. >> it feels like a 1q correction in inventory, and then we get going again. it shouldn't be new news, but we wrote about that in our piece, that people should check out. >> that's good. a bunch of stories. ben, thanks for coming in. good to see you. >> take care, guys, thank you. as we head to break, here's our road map for the rest of the hour. one of the long time tesla bears turns in the towel, upgrades the stock for the first time in years. find out why and where he's taking the price target to. the most important day of the year for online shopping, we're going to t a read of the health of the consumers and spending this holiday. oc s ufothbe stksetp r e st month of the year as the big show continues. "squawk on the street" is back after a break. at least, not the way it could work.

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♪ dad: you can talk to me. son: it's been really, really hard for me. welcome back to "squawk on the street" tesla, the stock higher this morning up nearly 40% over the last month. perhaps one reason why a long time bear, craig erwin just raised his price target to 380 and upgraded the stock to a buy from a neutral. craig, i don't know what we're . why thisnow, what do you say to those that

will just cynically point to you and say, he's been wrong for so long, he finally had to throw in the towel. >> so what i'm looking at is this quarter is probably the last quarter of relative weakness, right? so, you know, my view is, you know, battery prices gave them the margin up side this last quarter, the prior quarter and the cfo was clear about the margin outlook for the fourth quarter, and the stock is responding to the trump bump. musk was one of the most passionate and authentic supporters of president trump, and obviously a very close ally of his moving forward, the doge, the government efficiency initiative and all sorts of other things positioned him to play an interesting role in the trump administration, right, so the last quarter of relative weakness, i think now he's got a new pool of buyers, conservatives that might not have looked at evs quite as closely in the past, that allow an acceleration of demand in the

core u.s. market, right? so that means we're looking at positive revisions and i asked myself where the catalysts, right? i don't see very many negative catalysts if experts are going to visions, and the abundant positive catalysts. things are going to look like they did 11, 12, 13 years ago, where they can invent their own milestones and knock them down, you know, optimist, groc, the ai initiative, the visibility around ev share gains, all of these, i think, will play to the positive for tesla, and i think this is something that can be sustained for a couple of years. it's not like it's going to happen over a quarter or two. so, you know, bias is now to the up side, not the downside, and market cap may be huge, right? 1.1, 1.2 trillion is a big company, but they're doing big

things. >> all right. but this is the ceo who has famously said that if you want to own my stock, don't own it because of the cars. own it because of robotics, own it because of the robotaxi and full self-driving. are you a believer in that part of the story, which mr. musk said should be the main focus for his investor base? >> so, where i think i need to look at things differently than how i did previously, we look at the incremental solutions for fsd and incremental solutions for robotaxis. i like the way waymo, because of the cost out there, it's something that does need to come out of the vehicles over the longer term. on an incremental basis, i have talked to engineers involved in the projects over the last few weeks, i have learned there's

often two or three of these, what do they call them, teleoperation engineers, basically human operators there to catch something that goes wrong in this robot. and tesla even started hiring tele-operation engineers last week. tesla is not going to do any worse than waymo, you know, and if they're more intently focused on an optical-only solution, you know, i think competing at the edge, some of this technology that's being brought to bring down the energy consumption for the compute is something that tesla is going to be more adept at, if that's where they're starting. and i think they're a real contender for the long run. so, you know, the cyber taxi, yes, it's going to be rolling into the middle of next year, right? we're going to see incremental progress and people are going to be able to have a tangible experience and that's what i think actually drives valuation in the stock, and that's what drives, you know, enthusiasm to actually own the stock.

>> i'm just trying to understand the nearly $300 price target difference, though, that you come to. do your earnings expectations change? like what do 2025 earnings look like now and 2026 earnings? you're laying out the thesis, you could have done that a few weeks ago, as far as the product road map. >> our estimates from 2025 went from 245 to 340. a very large part of that is the acceleration of evs, right? the fact that there's a much larger pool of buyers in the market now. i expect that the market mix towards tesla over the next few quarters because the end of the biden 7,500 ev tax credit, you know, will indirectly benefit tesla in a big way. you've got new buyers, a market consolidating back to tesla. you've got market share going in the right direction. the pnl by positive revisions on

the ev side, and, you know, i've spent a lot of time looking closely, doing more work on the adas and on cyber taxi, and i'm saying, you know what, when they come to an incremental solution, getting off the movie set will be seen as positive. the movie set, i think, was underwhelming and when they get this on to the road, probability is that it's going to be practical, progressive, and they will make incremental progress from there. and you know, i don't need to be overly focused on the fact that we didn't roll out on a movie set. you know, that's backwards looking at this point. investors discount the future, and i think tesla has the capital and the technology and the engineering expertise to go ahead and lead in this market over the next number of years. >> all right. craig, thank you. >> thank you. >> now, amongst the legion of tesla pulls, greg erwin.

>> thank you. some big upgrades today in terms of price targets as they write that the companies in the strongest position financially, and competitively that we have seen. stock up 1.4%, having a great run. check out the stocks hitting fresh 52-week high at the open. apple walmart continues to sore. the cruise lines, norwegian, rol yacaribbean, we'll have much more on the morning movers after a quick break.

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insurance. got some split markets this morning. tech outperforming, the nasdaq closing in on a near 1% gain to start this week. let's get to dominic chu. >> let's jump right where you left off there. we'll take a look at some of the best and worst performing sectors driving that trade, especially for the nasdaq. it has been communications services, consumer discretionary and technology, so some of those mag seven type sectors, that are leading the way higher. energy and utilities are the

laggards so far. within that kind of broader tech story, a couple of chip makers to focus on right now. nvidia and super micro. surging after reporting that an external view of its business found no evidence of misconduct and the company searching for a new cfo, that decision based on recommendations by the special committee to look into super micro accounting practices. nvidia higher by a percent or so after bridgewater associates announced it adjusted the position in the companies, and cut its nvidia position, bought more shares of super micro, interesting dynamics there. shares of gap are higher upgraded to a neutral rating. analysts expect growth in the mid level digitings. keep an eye on gap shares. and finish with shares of toast under pressure after goldman downgraded the restaurant management software from a neutral to a prior buy, saying they have a positive outlook.

they believe the shift to a software based valuation is reflected in that price, so keep an eye on that big move that we have seen over the last couple of days here, and weeks. for more on that and other top stories of the day, head over to cnbc.com/pro. subscribers of course get more access to all of those stories coming up here. so i'll send things to sarah, back over to you guys. >> thanks. let's get a news update with silvana henao. good morning. >> good morning to you. an israeli-american soldier who was thought to have been captured alive by hamas during the october 7th terrorist attacks was actually killed that day according to new information from the israeli military. around 250 people were taken hostage during the surprise attack, and an estimated 100 remain in captivity, though. one-third are believed to no longer be alive. president biden did not comment this morning on a granting of a full and unconditional pardon to his son hunter biden as he made a brief stop over in cape verde

in route to angola. the president flew out of washington shortly after announcing the pardon, which he previously insisted he would not grant. >> and according to oxford university press, the word of the year is brain rot. the dictionary found the word's frequency of use rose by 230% in 2024. brain rot was first coined by henry david in his book "walden," it describes a detier -- deterioration in ental state, and is now amplified by what else, our online culture. david. >> thank you, silva na. >> you got it. still to come, the staggering numbers around holiday spending so far. plus a read from the ground. we'll have long time retail and investment ray washburn join us.

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welcome back to "squawk on the street." shoppers coming out in record-breaking numbers this holiday season, and today, of course, is a crucial day for online shopping. our courtney reagan joins us live from the home depot distribution center and a closer look at what's at stake. good morning, court? >> reporter: good morning, it's good to see you. jordan brogy, he says the holiday is off to a strong start for the fifth largest online retailer. he expects appliances will be on the hot seller today. salesforce data is supporting that that appliances, dining and home furniture is among the highest growing category at least so far on black friday, and adobe also says that appliances among the higher ticket items that shoppers are buying early in the season. now, when it comes to today on cyber monday, kohl's seeing the biggest year-over-year change in

online searches, up 48%. followed by barnes & noble, and then home depot, and macy's after that. now, adobe is forecasting that today will be another record day for online shopping for cyber monday, estimating $13.2 billion will be spent over the total day. that's up 6% from last year. peak, though, not expected until between 8 and 10:00 p.m. very different from the advent of cyber monday when shoppers needed work computers, high speed internet access now, and happens much after the workday has concluded for many people. the national retail federation expects 72 million americans will shop today. that makes it the second biggest day behind the stretch. as we look at early data, mastercard, in store and online, grew 3.4% over last year. online spending seems to be stronger here with adobe saying that that was up much more strongly for each of the days of the week, but in-store traffic looks a little weaker.

sensormatic and retail next are estimating that fell by 8.2% and 3.2% respectively for black friday. as long as the sales come in, retailers don't care if it's in store or online, as long as you're shopping with them. david. >> courtney, thank you. our next guest owns shopping centers and restaurants in several states across the united states. ray washburn joins us with what he's seeing on the ground. our viewers may recall, you have been less than positive at least for the trajectory of the consumer when you have come on with us in the past. has that changed at all in terms of what you're seeing in both your restaurants and retail locations? david, you know, our shopping centers around the country are luxury centers. 2023 was a flat year. 2024 was flat up until mid october, and the st time i was on your show was previous to that. i was somewhat pessimistic.

in mid october, sales at the luxury centers ticked up and in november, they explode ed. most luxury is bought in store and not online. a little different than your previous story on sales being down. our shopping centers are packed. i surveyed our luxury retailers last night and this morning, we're up 8 to 10% november over december, this year versus last year in the luxury category. we're very very encouraged. in talking to them this morning, a lot of them are looking going into next year, up 5 to 6%, going into next year. so we're very very optimistic, and so my tune has changed a bit, just seeing, really, since the election, the big surge in buyers. >> i'm recalling, you know, in terms of at least in the spring, i think, you expected there might even be a recession, and perhaps even a decent, not to put that word, but perhaps a deep recession. obviously you're not talking that way at all anymore. >> well, the only headwinds i

kind of see. i'm chairman of sonoco, gasoline sales are flat. diesel sales are down about 4%. this is one cautionary head wind i can see coming. less trucks are moving. i saw that last spring. consumers are they shipping less to stores going into next year? that's a cautionary tale. when i see sales in the stores in the last 45 days, it's unbelievably encouraging for us. but i still feel with consumer debt and diesel sales down a bit, i'm a bit cautious still. >> and what about for lack of a better term, the more median consumer, you know, when you see in terms of your restaurants, what are you seeing, customer counts or average check size, what is that looking like right now? >> great question. our sales are pretty flat this year. you see that across casual dining. menu prices are up about 4 1/2%.

we still have a lot of inflationary head winds in our proteins and avocados and things like that. grocery sales are only up, prices are only up 1%. we're up 4 1/2. labor is very very steady. we're not really having any upward pressure on labor at all, and no problem recruiting people. that isn't the issue. the issue is the consumer going out and spending. customer counts were pretty flat and sales were pretty flat, so where does that go with casual dining? i don't know going into next year. i'm just amazed at the luxury sales as compared to that. but if you look across the casual dining, and then you go to limited services, the mcdonald's of the world, their sales have been pretty robust, they're putting out all of those discounted sales, and $5 meal packages and things, which are -- really don't compare to what we do. i'm amazed at how their sales

have held up. >> what about the, ray, brick and mortar versus online, the age old battle. everyone expected everything to permanently shift online. investors were surprised to see people back in stores and retail traffic up. lately online feels like it's captured more of the attention and the focus and the prioritization from consumers, so what does it take to get people still coming to stores, beyond just around the holiday season? >> you've got to create the experience for them. last time i was on your show, we just bought country club plaza in kansas city, which is a million square foot outdoor center, and we have had great success talking to retailers. they're going for bigger footprints, for example, our shopping center in dallas, we're opening a 13,000 foot christian dior store here in a week in dallas, and it's going to include a cafe, a bar, all of these things. the luxury retailers are looking to expand into next year. they want much bigger footprints, they want marquee

stores, and they're not going in with these small boutique stores. they really want to find the best centers in the country to go to, and so the consumers are going in the stores, but they want the experience. now, what you're seeing online is buy a pair of khakis from gap, you can go online and do that. luxury, if you're going to spend a lot of money on a watch or gown or nice thes, you want to go into the store. we're seeing great luxury traffic in dallas, kansas, our shopping centers are packed. >> yeah, ray, finally, on the incoming trump administration, i think you were on, u know, many of the speculation on a short list of contenders for commerce secretary, i'm curious how you view tariffs, for example, what your real expectations are given you're fairly close to the president-elect, and how that's going to play out and how it may or may not impact some of the businesses you have been talking about? >> well, the tariff thing will be interesting. in agriculture, housing can

affect things into our restaurants. all of our avocados, come from mexico, for example. and how is that going to affect us there? i'm not sure. the new agriculture -- secretary of agriculture, brooke rollins is from fort worth and will hopefully be friendly in the agriculture space. as far as the luxury side on tariffs, i'm not sure exactly. they're talking big, big numbers, 25% tariffs. but part of what the president wants to do is use that as a negotiating chip to say let's drop tariffs on things going the other direction, and i think there's going to be a lot of compromise, and the president's a deal maker and the fact that, you know, the canadian prime minister came down last week, i think, shows that they want to make a deal on how do we balance this thing out. that's going to be the important part. we do a lot of exporting of refined products to other country, and we want to be sure, you know, that we can knock tariffs off that when we're shipping out of the country as well. i think the president is a deal make, and when he throws out

these big tariffs, the other countries are going to wake up and want to deal with it. >> yeah, well, ray, we appreciate your coming on. we look forward to chatting about the trump administration as well when it's underway. so thank you, ray washburn. >> thank you, david. s&p 500 in the green. the last rading month of the year in december. super micro, up 20%, it's been a bumpy ride for the stock. lululemon, gains ahead of earnings, and some of the semiconductor stocks are higher, the nasdaq is up almost a full percent with the dow down 92 points at the moment. caterpillar, jpmorgan, united health, honeywell, the playbook to your end, when we into year end when we come back. i'm a rock star. great job putting finance and hr

on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one.

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not investing in it is. you're so dramatic amelia. bye jen. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. dow, s&p, russell all coming off their best month of the year, as you know. fresh record highs on the dow, s&p and nasdaq this morning. here to break down the outlook on the economy into the year end and beyond, our senior markets commentator, mike santoli. what is the lead right now? >> i think you defer to the trend and said the trend is strong. upward drift is what history says to expect in the month of december. not necessarily right away. there's a little bit of hesitation in the first half of the month. i do think one of the issues we're going to maybe invite is high expectations piled on top of an elevated starting point. an elevated starting point both

in the way of value rations in the sense that cyclical parts of the economy were seen to be improving going into the election, and we have kind of re-upped that thought that we're actually going to get a kicker to growth. for now, i think it's an unassailable trend. it's broad enough this rally. earnings growth has started to broaden out. in the third quarter, 58% of large companies had year over year growth. that's the best in seven quarters, even though it's not great. that part of the story is holding together. i do think that you're starting to see a little bit too much of a clustering of bullish opinion, not just among strategists but even just u.s. over the rest of the world. i mean, if you just look at the massive performance gap between the s&p 500 and the rest of the world indexes, it's just pretty daunting. it's diverged recently, and nobody thinks it's going to reverse. i think those are things out there for the first quarter that we might have to keep an eye on. in the meantime, i don't think

that the market is really in a very specific surgical way trying to assess the probabilities of these detailed policies. it's sort of a general, there's a trump put and a fed put, and we're okay with both of those. >> your point about a strategist which is why b of a is so interesting told. they have it contrarian self-side indicator. it's a lot closer to sell than it is to buy. >> it is, and has been for a while. that's an asset allocation model, which is interesting. we're not just saying our strategist is too aggressive with their targets. they're saying what's their recommended equity allocation. over time, that's gone down. they adjust for the fact that the norm is different. it does reflect that nobody has a nice thikz ng to say about bo. the pain trade might be much slower yields because i do think that there's sort of a bearishness about bonds. much slower yields, defensive stocks out performing would be a real kind of surprise to the crowd. i'm not saying it's going to happen. if you want to know where the

kind of edge case is, that would be it. >> and a weaker dollar, just keeps going up and up and up. >> exactly part of the whole thing, and it's interesting, sarah, because you had that little reset lower in the dollar came off the boil in the last week or two, and then the headlines higher. we'll see if it's still in the tolerable range here. >> mike, thank s, talk in a bit. mike santoli. intel announced it had finalized nearly $8 billion in c.h.i.p.s about funds. we'll take a closer look at the fallout in d.c. in just a minute.

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the biden administration's support of intel, a key focus this morning as ceo pat gelsinger retires. let's get to megan with more. intel was the poster child for the biden administration. i remember when pat was at the state of the union speech. biden went to the ground breaking ceremony in ohio. he really made a big point around intel. >> she sure did. this was the flagship program and there's been lots of discussion about whether the biden team bet on the wrong horse when it decided to give the company's the largest of the c.h.i.p.s act awards. kate rooney asked secretary raimondo about intel two weeks ago.

listen to this. >> intel has struggled for years ago, you know, not just since the c.h.i.p.s act. they lost their way. but they're finding their way, you know, and they're making incredible progress. it is an american champion. and i'm counting on them and believe in them to be a leader in making ai chips in america, making leading-edge chips in america. >> so outwardly standing by intel there, but the administration did, last week, cut the amount of its c.h.i.p.s award from 8 1/2 billion dollars in direct funding to about $7.9 billion. they are also getting $3 billion in defense contracts from the same pool of money. the "new york times" has reported that that move to cut the award comes amid concern about intel sort of sticking to its original time line of getting its fabs online. and to that end, paul trilio noted to me that now with gel singer out, there are uncertainties about that award and about how commerce is

thinking about intel's ability to meet the necessary requirements to keep receiving its funding. guys, intel does not get anymore money unless it continues to meet those mile stones. that's a challenge for whoever comes in next to succeed gelsinger. guys. >> and of course another administration they'll be dealing with as well. megan, thank you. the markets up. mega cap tech in particular a bright spot with the nasdaq up some 8%. you can see the s&p just barely in the green. a lot more live market coverage right after this. s work not wor? at least, not the way it could work. your people are buried in busy work. and you might be thinking... can ai make it all work? it can. on the servicenow platform, ai transforms your entire business. because when your people work better, everything works better. so, let's get to work. idris elba works here? mm-hmm. ya, he's super nice.

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good monday morning. welcome to "money movers." i'm sara eisen with carl quintanilla live at the new york stock exchange. an opportunity rising in europe. everyone hates it. >> pat gelsinger out as intel's chief. what's next? has the stop bottomed? back in september citi called for them to get ou