reversed the move hours later. and president-elect trump's pick for defense secretary in jeopardy and the new person that might get named very interesting. reports say trump is considering some other options amid growing concerns over pete named very interesting. reports say trump is considering some other options amid growing concerns over pete hegseth's personal life. it's wednesday, december 4th, 2024. exactly three weeks until the 25th. huh? huh? even though it's early. "squawk box" begins right now. good morning, everybody, and

welcome to "squawk box" right here on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen. andrew is hosting "the new york times" deal book summit today, and he will join us a little later in the show. if you take a look at what's been happening with the u.s. equity futures this hour, we are up across the board. as we mentioned, salesforce is the big gainer in the dow, pushing the dow up by 213 points above fair value. s&p futures are up by 15. the nasdaq up by 125. it does come after a mixed session for the major averages. you had the s&p and the nasdaq both closing at record highs yesterday. in fact, for the s&p, that's 55 this year. the dow closed slightly lower. it's been down for a couple sessions in a row, but the dow is less than 1% from an all-time high as well. if you're watching what's been happening in the treasury market, at this point it looks like treasury yields are a little higher. the 10-year is at 4.25. and then you have bitcoin which, at this point, looks like it is

back above 96,000. 96,538. president-elect trump is considering other options for the cabinet position of running the pentagon amid republican senators' concerns over mounting allegations about pete hegseth's personal life. multiple reports say trump allies are increasingly concerned that hegseth's nomination might not survive further scrutiny. what can you lose? three at most republicans if democrats, which they always do, stay solid with their block. "the wall street journal" reports trump has floated florida governor ron desantis as a possible replacement in casual conversations with guests at mar-a-lago, and the report says the idea has been presented to the governor, the florida governor, in recent days. nbc news has reached out to governor desantis and the trump

transition team for comment. "the journal" report says trump allies have also mentioned former pentagon official el bridge colby, a frequent guest on "squawk box" and would be a great pick, too, senator joni ernst, which we've mentioned before, for the job, who has expressed a great interest in that position. >> you pointed out this would be interesting because of the falling out between desantis and trump. desantis was elected governor with trump's endorsement the first time, and when he ran against him, a real breakup. >> i never -- i'm on tv. i'm not ready, i don't think, to join the cabinet. i don't know about hegseth. i don't know anything. he served nobly. he has great background in terms of education, but i never understood whether that was the best pick and was hoping for someone like colby or joni ernst. i think governor desantis would

be a reat pick, too. all three very serious picks. it's weird the first ag pick, bizarre second one much better. if you get it right eventually, everybody benefits. >> you're going to have to appeal to the republican senators. you can only lose three of them. it's hard to get them to break with the republican incoming president who received such a mandate at this point. if you're getting major push back from five, six senators or more, it's an issue you're going to have to revisit pretty quickly. >> is murkowski even a republican now? >> it doesn't matter. this is a popular incoming president. >> susan collins is in one of the bluest states around. >> if you are dealing with big pushback from the senate even when you have this majority,

you're going to have to stop and rethink. >> i'll take nil of the other three. we don't know if hegseth -- when you start talking about it in terms like this, it usually means -- it means it's in trouble. i think it's -- if it's on the front page, probably in trouble. i mean, gaetz was gone -- here today, gone tomorrow, quickly. trump said, look, you're out. let's talk more about salesforce. we mentioned those shares are soaring. that company came in with earnings of $2.41 a share that was below the expectations of $2.44. revenue beat expectations and the current quarter revenue guidance exceeded expectations as well. the ceo marc benioff spoke to jim cramer on "mad money" about the prospects for its a.i. chatbot system known as agent force. >> everything is going to be enhanced through this agent mechanism and that's an incredible opportunity that we're able to harness the power

of generative a.i. that we've seen and we're delivering something absolutely incredible and shark ninja is going to be a huge success story based on this idea. >> again, that move better than 13% this morning. and with the move salesforce is now up more than 40% for the year today well outpacing the s&p 500, which we mentioned has been up 55 times to new highs this year. jim cramer spoke with him last night, and, not only that, i was watching cramer at the top where he gave his ideas about what he sees coming, and he has a really intriguing idea about the idea with this incoming administration, you may see closer ties to china than we had anticipated. part of that he points to elon musk being there and having very close ties to china. if that's the case, jim was saying there's a lot of stocks you should buy including apple and starbucks and others that have ties to this. it's an interesting idea. it's not one many other people are pushing, and it was pretty intriguing last night. >> when you think about what the

end -- the means to an end. if tariffs are the means to better trade in terms of what the united states gets from its trade with china, that's the end result. if you do it in an economic way, and we lower some of the other tensions with china. if china cops to being a serial violator of wtf, and they do. >> well, jim even pointed to the idea that trump has had a lot more fiery rhetoric that he's aimed at canada than he's aimed at china since the election, and thinks maybe participate of that is because elon musk is so involved behind the scenes. >> but china could pull back. i mean, they know some of the stuff they did was pretty bad, pretty egregious whether it's fentanyl or dumping. they've been dumping -- >> i don't know if you can stop it. >> they've been dumping all sorts of different -- steel, evs. if you've got -- i don't know

whether they're in a position to moderate what they do -- >> because of their own internal issues. >> right. maybe things get better and be good for everyone. shares of okta sharply higher, 67 cents a share, beat estimates of 58 cents. revenue jumped 14% from last year above analyst expectations and current guidance came in well above estimates. okta provides cloud software that helps manage secure user access to their computer systems. and watching shares of campbell. the maker of campbell's soup, mark clouse is leaving to the washington commanders. that's an interesting move, effective as of january 31st. he will be replaced by the former cfo and current president of campbell's meals and beverages division. clouse became ceo and oversaw the ffort to try and diversify the company away from just soup into other packaged food and snack brands.

pepperidge farms and salsa. it beat estimates on the bottom line and missed slightly on the top kleine.line. >> goldfish crackers. >> pepperidge farms. >> we go through a lot. i think it was julia -- somebody like -- maybe it was martha stewart -- >> only packaged? >> that was the hors d'oeuvres for a nice dinner. >> no way? >> yes. i think it was julia childs. >> to today's "squawk planner." it is jobs week in america. we'll be getting the adp private payroll report at 8:15 a.m. eastern time. forecasters expect 163,000 private sector jobs were added last month. on the earnings calendar we'll be hearing from chewy, dollar tree and foot locker, all of those before the opening bell and then after today's close

we've got reports that are due from american eagle outfitters, pbh and five below. get an answer? >> that wasn't the only thing she served but she was known for serving them as a simple appetizer especially during thanksgiving and cocktail hours. goldfish crackers were one of her favorite snacks and paired well with her preferred drink, the reverse martini, which features more vermouth and gin. coming up, south korea's president is facing impeachment after at the declared martial law yesterday and then lifted it. i'm thinking about dan aykroyd cutting his finger dressed up as julia child on "saturday night live." do you remember that? >> no. >> he cuts it and it is hemorrhaging.

what's that? voted to defy him. michelle caruso cabrera will break down the move next. and andrew is hosting "the new york times" deal book summit featuring onstage interviews with the ceo of alphabet, the pollnd j enai, fed chairay we a amazon founder jeff bezos. we'll have full coverage and andrew will join us later in the show. "squawk box" will be right back. experience the art of high pressure brewed coffee and espresso with the l'or barista system. enjoy richer, bolder flavors complete with velvet smooth crema. for a satisfying moment unlike any other. ♪ (animatronic santa) ho, ho, ho! (vo) time to move? make it easy with opendoor. sell your home in any season, for any reason. (animatronic santa) look at me! i am festive!

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south korea's opposition party is calling for president yoon's impeachment now after he declared martial law about a budget fight. the order was lifted six hours later after the parliament voted against the measure. the political chaos played out in the markets impacting the currency. joining us now contributor michelle caruso cabrera, ceo of mcc global enterprises. >> good morning. >> we didn't see this one coming. >> have we met before? i think we have. we go way back, obviously. in many places around the world when we look and see things happening, it's confusing for americans. >> yes. >> because we take for granted -- i mean, we have our issues in this country,

obviously. but martial law based on his political opposition, calling them criminals. >> communists. >> i'm going to declare martial law, control the media and whatever that entails, which is a big deal and it lasts six hours. >> it was very short-lived, yes, because he didn't have support of the parliament. >> when i saw the head lionel he declared martial law, what did north korea do? that was my immediate reaction. what? >> now that is the question. when north korea sees this instability with all these troops still amassed on the, what is it, the dmz. >> obviously the whole world was taken by surprise, right? he does it late time korea. i think your show is almost over when he does it, and then the korean huang was off by 7%, all of the internationally korean stocks that were listed in london or here in the united states sold off by 7%.

the parliament reacted in the middle of the night, voted against martial law and, as a result, he had to withdraw the whole thing, all before the korean market ever actually had a chance to react. the central bank of korea came out and said we're going to provide as much liquidity as we need. they came out and said, don't worry, the market will open on time. there isn't a huge reaction in the korean stock market today because, poof! it was over by the time they went to bed by the time they woke up in the morning, but, still, it caused a lot of -- it pushed u.s. yields lower because people were concerned about what is happening. is this because of north korea? people in south korea are still waiting for a good explanation as to what were you thinking? >> right. >> because now it looks like his days are numbered. his party looks like it's going to abandon him. it's not clear they have enough votes to impeach him but enough to defect from his party. >> there were only a few people, like his defense minister who he went to high school with and a

few people in his own ranks who knew what was going on. >> it was incredibly confusing to them, to the whole world. i'm sure -- he's a conservative. he's a pro-business conservative. he's pro deregulation. i'm sure it caught him by surprise. he realized just the terrible, terrible market reaction that he unleashed as a result of doing this out of nowhere in the middle of the night. >> what caused the initial, i guess, budgetary concerns to become so front and center? what does he want? what is the opposition pushing for? are there any similarities to us when we do doge? >> yes. so there's a progressive party, the party that used to be in power was progressive, and they want to rely more on government programs to solve problems, whereas he is more about deregulation, et cetera. >> this all sounds familiar to me. >> by the way, it's the same

problem in france. you also have -- >> yeah, i saw that. you're going to make -- draw some parallels. tell us. expound. >> today there's going to be a vote in france where the government may collapse. they'll have a no confidence vote on the prime minister. it will be the shortest premiership since the 1950s, three months. >> july was the elections, the last legislative elections. >> in france you can only dissolve the government once a year so they have to wait until july before they have new elections. they also have big budget fights going on, one of the similar drivers between that and south korea is they're fighting over how to cut the spending levels in france, which are horrific. >> 6%? >> their deficit is 6% of gdp. >> lower than urs. about the same. >> the rule is 3% of gdp, so they're way over. he's trying to get it down to 5% of gdp, and $60 billion worth of

either tax hikes or tax cuts. they nationalized the gas companies, they want to cut the number of teachers, to increase the amount that people had to pay for their prescriptions, which was a no go for marine le pen, raise electricity taxes. the right and left look like they're going to gang up, vote him -- vote no confidence for him, so you end up with a caretaker government with emergency powers to do the basics until they can figure out what's next. the reason we're talking so much about france is because their debt now trades almost worse than greece. >> the world's second largest economy in the euro. >> right. i would not say we're on the verge of a eurozone crisis. the yield is like 3%. nobody is terrified. it's trading at a premium to germany, the biggest premium we've seen in a very long time and, yes, it trades worse than

greece which has been rectifying itself for the last 15 years, but you have to worry about an economy that doesn't grow. they haven't grown since 2008. they just don't grow. and they are emblematic of all the problems europe faces right now. they're calcifying before our eyes. >> almost spanned the globe with similar issues about overspending and in debt to gdp. all these things -- i don't know what it says for global currency fluctuation. i guess we're not as bad then. we'll stay the reserve currency. but if everyone has overspent and are going to have to inflate their currencies, what does that mean about a global slowdown? >> well, you know, call me a professor of the obvious, but when money costs nothing all over the world -- >> you're a professor -- you're our professor of the obvious. due want me to call you that or is it an expression? >> i'm anticipating that.

interest rates are low all over the world so people borrowed and borrowed and now we're all living with the overhang, the hangover, shall we say. >> so in addition to making us multiplanetary to save the human species, elon may also save the world from its overspending with doge. >> what elon is doing is very interesting, or what he's going to try to do is interesting, because he will try to cut the federal government by 30%, right? only one place in the world that's been done recently and that's argentina. the new president of argentina. do you know how much she cut the budget? 30%. he did it in one month. one month. i spent a lot of time trying to figure out how do you cut a budget 30% in one month, because there are so many -- every dollar in federal budget there is a constituency, a legislator who wants to defend that dollar, right? and what it takes is an enormous amount of political will. he has a president -- you have a president in argentina who -- did you see the cover of "the

economist" this week? the headline is "my hate for the state is infinite." that's his quote. and so they've been extremely aggressive about cutting. they fired 30,000 federal workers. i mean -- >> the question is whether he will continue to have support. >> so that's what's been very interesting. his polls have fallen a little bit, but considering how much government spending has been cut, the recession wasn't nearly as bad as you might think. the world bank was estimating this year they might have a decline of 4.5%. considering you were going to have -- remember, you took macroeconomics, why equals c -- if you cut g by 30% you're going to hurt the economy. however, they expect the economy to recover by next year because it's also -- >> argentina is so messed up. >> they're doing massive deregulatory work. >> we need to cut it before all of it's interest because you can't cut interest.

>> you have to cut. >> before all of it we're spending is interest. >> i wondered if our next treasury secretary, scott bessent, will say i believe in a strong dollar. if we're trying to boost manufacturing, a weaker dollar. >> how many federal employees go to work once a month? it's staggering. i can do 10% or 15% tomorrow. can't you? i do. >> you can probably do this job and that. >> no, cutting. >> oh, you can cut. >> i can do 10% to 15%. i think elon can do that in his sleep. the other 10 to 15 -- >> if you have the political will from the legislature. >> all right, mcc global. >> enterprises, yeah. >> wow. i love that. >> is that new? >> yeah, in the last year. >> how many employees? >> you're looking at her. >> love that. that's a key employee. >> i have lots of great contractors i work with.

>> thank you. >> always a pleasure, lady and gentleman. >> when we come back, a report says a biden administration official has locked in work from home protections for thousands of federal workers. that's probably not going to sit very well with president-elect trump's doge team, as we've just been discussing. we have the details on that straight ahead. right now, though, as we head to a break, we are less than 14 hours away from the tree lighting ceremony at rockefeller center. it's going to be broadcast live on nbc and peacock, hosted by kelly clarkson and ftungeari performances by the backstreet boys, jennifer hudson, the radio city rockettes and many, many others. "squawk box" will be right back.

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a biden administration official has agreed to lock in hybrid work protections for tens of thousands of social security staffers according to a bloomberg report that cites an internal message that will protect work from home arrangements until 2029. they range from two to five days a week varying by job. the incoming trump administration's doge leaders elon musk and vivek ramaswamy have said they plan to eliminate work from home policies. they're set to meet with house republicans tomorrow on capitol hill. i guess the questions are, does it stick? >> what's the point? is it just like vindictive. i do remember in previous -- previous transitions, i think it was during the bush administration, they took off -- >> the letter -- >> they leave little issues in

the federal government for the incoming administration, but this just seems like, all right, we're going to do this. we're going to leave -- so he can still -- i don't know where -- he's in sub-saharan africa wandering around right now but his staffers are doing this stuff? >> i don't know if these things stick, if you negotiate with the union, if you allow them to go through, if it's an executive order, can be unrolled. >> who came up with it? it's not biden. who came up with it and why? >> biden has proclaimed that he is the biggest union leader all the way through. >> i can fill in the lank. >> the biggest union leader, he's claimed himself the biggest pro-union president ever. if it's a negotiation with the union, i'm not sure. i don't know enough of the details on this. if it was a negotiation with the union, i don't know if it's executive order. >> can it be reversed immediately? >> i don't know enough about the deal that was cut, if you make a deal with a union, can it be

undone or not? anyway, when we come back, the big numbers behind black friday and cyber monday shopping. we have those straight ahead. right now, though, as we head to a break, a look at yesterday's s&p 500 winners and losers. the top of the list, palantir was up 6.9%. some big moves there yesterday about things that it could be atted to it, defense securities, and that was what was boosting that stock. microchip technology down lower, 7%. it all started with a small business idea. it's a pillow with a speaker in it! that's right craig. pulling in the perfect team to get the job done. i'm just here for the internets. at&t, it's super-fast! you locked us out?! and when thrown a curveball... arrggghh! ahhhh! [crashing sounds] we had everything we needed. is the internet out? don't worry, we have at&t internet back-up. the next level network for small business. ♪♪

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good morning, everybody, and welcome back to "squawk box." we're live from the nasdaq market site in times square. the futures this morning are looking sharply higher, dow up 208 points. that is entirely because of salesforce, which i think is adding more than 260 points to the futures. so without it the dow would be in negative territory. the nasdaq indicated up by 145. both the nasdaq and the s&p set new records once again yesterday and for the s&p that was the

55th time this year. news just out, hence the word news, from gm. phil lebeau has the details. hey, phil. >> reporter: hey, joe, this is significant. the company will be taking two noncash charges for its joint ventures in china totaling more than $5 billion. they're going to be taking those charges or almost all of it in the fourth quarter. some of it may spill over into the first quarter. here are the write-downs or the charges the company is taking. the first one writing down the value of their china joint venture, one of them, for the value between 2.6 and $2.9 billion. the one with saic will be restructuring its operations which leads to the second noncash charge, $2.7 billion for the restructuring of that joint venture and, again, these will

be noncash charges that general motors will be taking in the fourth quarter totaling more than $5 billion. not a surprise given what we've seen with sales and what general motors was doing in china and has been doing. it used to be a profit driver for this company in terms of the equity accounting that they received from their joint ventures there. now that is not the case. their third quarter sales dropped 21.2%, and that's why you see general motors taking these two noncash charges as they restructure their operations in china with their joint venture partner. guys, back to you. >> phil, i guess not the last of some of these things. the tumult is at a -- >> reporter: it's not a surprise. >> not a surprise. the last thing you were talking about is what was going on at stellantis. i don't know what the hell is

going to happen with legacy carmakers. >> reporter: well, look, the bottom line is this. too much capacity in terms of auto manufacturing worldwide. now you can blame -- >> how much of that is china? >> reporter: chinese automakers have built and built capacity. there's so much capacity in the world that if you really, really pushed all the capacity to the maximum level, you'd be able to build more than 100 million vehicles per year. that's not how many are going to be sold worldwide. it's going to be about 85 million, maybe 86 million. there's too much capacity in the world. and you're going to pay the price if you're an automaker in some fashion. >> if you see tariffs that come in and stop dumping from china or from other places, will that improve the situation for the u.s., big legacy automakers, or are they at overcapacity, too? >> reporter: they're better.

no, the u.s. automakers, the big three, the traditional big three, they are pretty darned lean. i mean, they do not -- everybody has a little bit more capacity than they have. the problem is you have a number of automakers outside of the united states that have so much capacity that they're flooding the world, and you saw when we went down to chile last year, the people down there don't care. there's no manufacturing in chile but they're taking in vehicles and they're far cheaper than the vehicles from toyota or ford or general motors and that's the issue. >> this isn't just the sales the big three make to sales in the united states. this is the headline we're running is the china third quarter sales for gm were down 21%. >> reporter: correct. >> even if you put tariffs in place, it's going to hurt these companies, it's not going to help or save them because they're exporting a lot or manufacturing in other places where they're still going to be competing with chinese companies. >> reporter: the competition is

brutal in china. let's be clear here. you have general motors building in china and exporting vehicles to mexico, so it's not like they're sitting still. they are taking advantage of the market in china, which has become brutally competitive, and saying, we're not just going to sell here, which is what they used to do, they're increasingly saying where can we export our vehicles from? mexico has become a destination for them and ford has done the same thing. so it's a separate story then what you're noticing here in north america, becky. here in north america the question becomes are we going to be an island? and i say we. it's canada, the u.s., what happens with mexico, and an island completely where the trump administration has said, if it's a chinese automaker, it ain't going to be sold here. and the question becomes, will they allow them to manufacture here. >> my point is that it won't necessarily save these companies even if these tariffs come in and we don't allow any dumping

or anything to ham here because they are still bound also by the sales that they do other places and those sales could be more deeply impacted once we get into this. >> reporter: correct. right. and that's the mess that you see with automakers in europe right now, and they are really struggling. look at volkswagen. a combination of the competition from china and the capacity in that continent. >> so unless you can negotiate with china and get them to stop overmanufacturing, this is still a worldwide problem, right? good luck with that. >> reporter: yeah. and that's it. they have made it clear that they are going to find some place to send the vehicles that are being built in that country. where are they going to do it? okay, if they can't do it in north america, the rest of the world is open. they're huge in israel. they're huge in saudi arabia, i believe, australia, thailand, the philippines, south america. i mean, those are not big markets individually.

you collect them altogether and that's what the chinese automakers are doing. >> okay. phil, thank you. we're going to talk a lot more about this, i'm sure, in the coming weeks and months. when we come back, though, 197 million people shopped from black friday through cyber monday. at is slightly below last year's number but better than had been expected. the head of the national retail federation will join us next to break down the numbers. "squawk box" will be right back.

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well, the holiday shopping season off to a strong start. according to the national retail federation, the thanksgiving holiday weekend saw 197 million shoppers both in store and online. that's above expectations but below last year's total of 200 million people. joining us right now is matt shay, president and ceo of the nrf. and, matt, the numbers may be a little better than expected in terms of who is shopping. how much are they spending and

what are we seeing? >> we had a weekend that exceeded expectations. we expected 183 million shoppers to be out over the five-day weekend. so almost a record. last year we had about 200 million. we were almost at a record level and they were out in equal force online and in stores. so it was a very strong weekend. we'll have the dollar amounts coming soon. what we saw over the weekend was shoppers telling us they spent more on gifts than they did last year, about $235. and for the holiday season they're saying they're going to spend about $900 on gifts which is also more than last year. so consumers seem to feel pretty confident about the holiday season. they found ways to save for it. they save all year. it's an emotional time of year. you want to get the right gift for that person or sometimes for yourself. so we had a really good weekend. >> i was trying to figure out -- we've been trying to figure out for the last month, because we've seen the stock market really rally post election, trying to figure out if that consumer confidence is carrying over to shoppers spending, too.

what's your gut and what's the best you can say based on what you've see so far? >> we know consumers have evolved their spending patterns over the last year because of inflation and interest rates and trying to allocate their disposable income each month to go after those high priorities for the family and for the lower income households. more of that, of course, goes to the needs and the necessities as opposed to discretionary categories but we saw really strong performance in some discretionary categories over the weekend. lots of holiday pending is discretionary. you covered much of that yourselves and have heard some of the ceos come on and talk about what a great year they've had. i think what we're seeing now is much more discerning customer and higher premium on execution for retailers a couple years ago in the midst of the pandemic. everyone was winning because we had the pandemic payments. now there's much more competition. you have to have the right product. it has to be delivered the right way, at the right time. one thing we noticed is this weekend and the holiday season has not been any more

promotional than last year, which would suggest retailers are holding their margins. >> that surprises me. that surprises me from some of the analysts i've spoken to, 30% off was the norm when it came to black friday, but that's no more than we had seen the year before? >> no more promotional than a year ago. they have the inventory at the right price point. >> what happens next year if some of the tariffs do come into play? how are retailers preparing for that? what are they doing? >> a couple things. one, we know what we've heard so far. you've been covering this story for many years. you both know things can change a lot from now until we see what the final outcome will be. i think it's too soon to overreact about anything. retailers have also been living with tariffs for the last seven years. lots of changes to the supply chain due to tariffs but also due to the way the world's economy has evolved and through the pandemic, lots of supply chain evolutions. for example, on one category on apparel and accessories from 2017 to 2023, we import 40% less

apparel and accessories from china than we did seven years ago, so it's dropped dramatically although, at the same time, we've only stopped importing 2% in aggregate. so china has become less important from that particular category but it's gone to other places like vietnam, mexico, thailand. >> matt, thank you for coming in. we have some breaking news. >> nice to see you both. drug maker eli lilly says its weight loss drug zepbound outperformed wegovy, novo nordisk. patients using zepbound in its trial lost 50.3 pounds while patients using wegovy lost 33.1 pounds. hopefully they weighed more than 120 pounds when they went on it. 31.6 of zepbound users saw at least 26% body weight loss.

wegovy 16.1%. lilly says it will continue to evaluate the results of the trial which will be published from a peer reviewed journal some time in 2025. you see lilly is up quite a bit on that. i would like to see a lot more of what happens in the future about all of this. >> i agree. >> you saw the latest, once you stop taking it, you eat like a -- like you've never seen food before. >> right. coming up, quarterly results from -- speaking of food, spanning the globe, hormel and foot locker.

hormel shares are lower this morning. the maker of spam and other food brands earning 42 cents a share for the latest quarter that matched the street's forecast. revenue was also in line with estimates, but the fiscal 2025 forecast falls at least partly below consensus. it sees 2025 earnings of $1.58 to $1.72 a share. the current consensus estimate is $1.68. its 2025 revenue forecast is $11.9 billion to $12.2 billion and that compares to the estimates at the high end of the range. the stock right now not reacting all that well. it's down by close to 6.5%. foot locker shares falling this morning after the athletic footwear and apparel retailer earned 33 cents a share for the latest quarter. that was 8 cents below the consensus forecast. revenue came in slightly below what the street was expecting and foot locker lowered its full-year earnings outlook as well as cut the top end of its

comp store sales forecast. it says consumer spending softened during the back-to-school period and that it offered more promotions than it originally anticipated. that stock down by about 8%. coming up, combatting anti-semitism in the work place. the anti-defamation league h aas new study on hiring practices and jonathan greenblatt, ceo and national director of the adl, will join us next with the results. "squawk box" coming right back. why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake. the future isn't scary. 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.

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the anti-defamation league has published a new study on anti-semitism in hiring practices. joining us now jonathan greenblatt, national director of the adl. reading some of these numbers,

it surprises me. i didn't -- i didn't necessarily think that dei initiatives were -- would be as important to jewish people. i mean, these -- >> it doesn't lie. >> tell us about the data. >> basically we wanted to try to evaluate whether anti-semitic rhetoric is having real world implications on labor markets, and so we conducted the largest field experience that we know of that looked at resumes being submitted for white collar jobs where we used identical resumes, over 3,000 applications, and the control group was sort of europ names, the same resumes, just the names changed and some of the signals on the resume, like maybe the activities that you were involved with and, indeed, what we found was quite dramatic that the jewish applications,

they needed 24% more versus the control to get the same results. >> 24% more? >> 24% more applications to get just a positive response, and the israeli sounding resumes, 40% more. >> wow. where did you send these? >> white collar jobs in multiple cities over the last six, seven months. >> across the country? >> across the country in different met rose. >> different geographic locations? >> nope. same performance, all white collar in different industries. it's quite stunning. but it shows us, again, and we're an evidence-based, fact-focused organization, and i believe in facts not feelings. >> have you done that before? >> no. >> we don't know if this is a rise in anti-semitism or if this is the traditional -- >> we assess anti-semitic attitudes as well. we've seen it more than double in the past five years, watched

incidents surge. we tracked over 10,000 in the 12 months after 10/7. now we're seeing impacts on labor markets where, again, jewish people, israeli people are experiencing discrimination. >> i wonder if that discrimination existed before. are you going to do this on an annualized basis? >> we will are quite dramatic. and they're disturbing. they're disturbing. >> and i was trying to figure out the methodology and the control group and statistical. so there's no way that this is an aberration? >> no. i mean, this is a real deal study run by an economist. so look, this data statistically demonstrates that again, rhetoric creates real world results. and we're really alarmed by it. now the question is, what do we do? >> and you were talking a few minutes. >> and the gap of the president-

elect somehow being the language in the past. people, gotta find people on both sides rhetoric, i think that was trumped up or at least not accurate the way it was done. he's got jewish grandkids. he seems to be more of an ardent backer of israel than biden. >> there's a few things going on. with respect to the study we ran on the labor markets. again, i think a dei industrial complex, which excludes rather than includes jews. it magnifies the problem. >> dei is going away anyway. >> dei includes jewish people. what's your argument about that. >> it's hard for me to make sense, when we see that it's actually diminishing that in considerable degree. it's not working. >> are you happy or not?

happy with the cabinet? you mentioned matt gaetz. he's gone. the way things are going now? happy? sad? waiting to see what happens? where are you? >> look. there's no question that these early days of the trump administration has positive signs from my point of view. what the president said about hell reigning down on hamas, that was long overdue. >> instead of the same kind of rhetoric directed at israel? >> there are a number in the senate which is astonishing to me. >> and the administration. >> i think president biden has done incredibly hard work to try to get these hostages free. but look, i spent yesterday morning, joe, at sayasa. one of the israeli americans, we believed he had been kidnapped. he had been murdered on the 7th. and these people from hamas had

withheld the information from his family for 420-some-odd days. and to see how they suffered because of a war that hamas started. we need those hostages to get released now. >> 10ify. a young man from over the bridge. and the idea that we are not putting everything we can with every leader -- every elected leader should be standing from the rooftop saying, arrest hamas people in do ha. seize all of their assets. use every possible measure to get those released. this war would end, if those hostages can bring home. >> we'll see what those are. root cause of a lot of this stuff. >> we talked about this before. iran is the root cause. >> i would say that there is some nervousness in iran. >> there should be anxiety in

tehran. because trump sees them the way they are. they can't be appeased. they should be dealt with forcely, 100%. good to see you guys. it is just after 7:00 a.m. on the east coast. and you're watching "squawk box." andrew will be joining us in the next hour with the" new york times ." among today's top stories. the a dp private payroll comes out at 8:15 a.m. eastern time. they think added 163,000 private sector jobs last month. intel shares are higher after a 6% drop yesterday. reuters has begun a handful of outside candidates. including former reporter matt

but tan. and trump considering ron desantis to be a replacement for pete hegseth. trump allies increasingly think hegseth may not survive questions into his past. checking the futures this morning. back to business. up about 200 points now on the dow. it's been one of the best mornings we've seen in a while. we had a month of pretty strong action. nasdaq up as well. let's get to in terms of tech. a look at this morning's morning. >> you're not wrong. it is sales force. especially dow and tech sentiment. we'll start with those shares of sales force up bell 12 and a half points. this all after the business

company beat on software revenue and better than outlook. agent force, which is a suite that allows customers to use a.i.-handled certain tasks. was had the the heart of groundbreaking transformation. shares up 41 point ths year. it's up about 251 for the year alone. so everything you're seeing with the dow alone is just sales force. we'll keep an eye on that. america and novartis. merck rising. reducing from a hold. hsbc's group with more earnings from its oncology portfolio. the capital allocation has been overly conservative. and they're concerned about the loss of exclusivity. merck, novartis, opposite.

shares in general motors down about a percent or so. after saying it would take $5 billion in cash. that's due to a restructuring of the venture and reduced value for it. the business there used to be a big cash generator there. and third quarter sales there have dropped about 31%. so, joe, gm off a little over a percent. >> thank you. i think we'll see you again later in the show. don't go anywhere. when we come back, the nasdaq and the s&p closing at record highs, while the dow closed less than 1% from its 52- week high. and we'll talk markets after this break. and later, andy barr to talk about patrick mchenry. squawk box will be right back.

shares of roku are rallying this morning. a native analyst reports that the streaming device maker is likely to be purchased at a significant premium within 12 months. that report says roku is an attractive target. it's stocked this morning up by about 4%. the futures right now, based on some positive moves in salesforce indicated a strong opening this morning in the dow and s&p. for more on the markets and what the options and derivatives are saying, let's bring in amy wu silverman, head of derivative capital marketing

and strategy. this is episodic. this is going to be the episode available on peacock. it's not available on peacock. should be available on peacock. probably never going to be available on peacock. anyway, it is episodic with you, amy. and at this point, i read what you're saying and it makes me worry even though you're not worried. you say people are fully positioned. they jumped into the pool that normally would indicate complacency. but you don't think that means we won't have a santa klaus around. why if it's so complacent. >> we were talking about how it was full. you had the hedge fund prior to the trump victory. but really, they were just waiting for the election to pass. >> that's right. >> to something degree, that's why i thought we would continue

this rally. there's a lot of other seasonal factors that are determinative for the rest of the year. i do think we still get that santa claus rally. when you look at the near term, the next month, versus the longer term, which is the next three months. there success a lot of concern for investors for the first quarter of next year. we could face a little reckoning from the policies that have actually been enacted once trump goes into power. >> so on both sides? calls, three months out? or just puts? >> it's mostly on the put wing. so that helps us determine a little bit about sentiment. so if it was overall pricing was high, that would tell you, perhaps, there's uncertainty in both directions. but when you actually see that

put wing rising, that usually means, there is demand for protection. i would say one they think is always tricky to sess out. the put wing goes up. it's different than when you jumped in the pool, you're very long. so i do think that is a wrinkle. but even since that, we've seen a steady rise since august 5th and it continues until this day. >> even though the vix is really low roorksit? >> yeah, vix is low. and i think that's the part that is tricky. spot vix is really low. but vix future, so what the implied volatility is going forward, is actually higher. that goes back to what i was speaking about with term structure. the next few weeks, people are relatively complacent about, they probably expect a santa rally. but a few months out, when you look at vix term structure, you start to see that uncertainty

boiling ahead. >> i like the idea of putting on some kind of spread. and your favorite hedge right now is in the oil? if we're going to drill, baby drill, where are you bullish? we're talking call spreads. you're recommending those. why? >> sounds real. but bear with me. one thing -- i was joking with my colleagues yesterday that martial law in south korea was not on any of our bingo cards. >> that's what i said. >> but here we are. energy tends to be a very good geopolitical hedge. and the one thing i think, option markets and equity markets have a difficult time pricing, is these geopolitical risk. could have come from russia, ukraine. could come from france. and what do you see the highest correlation to? it doesn't tend to be equity markets. tends to be commodity markets. so that upside tends to be the most correlated to geopolitical

moves. that's why i like it. >> interesting. and it could be economic t. who would have thought the tibot? remember cypress? anything can cause a global contagion. it's really amazing. so at this point, the santa claus rally comes in your view, but next year, all bets are off. fundamentally, there are some uncertainties regarding policies from the new administration. >> yeah. and one thing i forgot to mention is obviously, we have a rates cut potentially in december that will keep iwm, your small-cap proxies happy a little bit longer. but i think the one thing we continue to hear investors say is they think the market is going to be okay, because trump

uses the market as a gauge for his own success. and it's interesting how many times i've heard that, sitting across from an investor. and the question is, if that doesn't become the case this administration, and we don't follow the 2016-2020 playbook? how do we actually market if tariffs are put in. >> at 22 to 23 times earning, what can a president really do to guarantee that he's going to have a rising stock market? i don't think he can do it like jay powell can do it. >> i think in his mind tpotentially he can. >> anything jay powell can do? >> that's exactly my point. i think those tales have yet to be considered or at least under priced in the market now. exuberant. people recall still trying to susthrough those sector-by- sector impacts.

and that's why you see those going. >> can you tell anything from derivatives, as far as interest rates go and the yield curve? what is that indicating at this point? >> right now. that's looking at rates volatility, not equity volatility. right now, there continues to be a cut in september. although that pricing went from very certain to a little less. and next year, i think the debate is where we're going to stop. and strategy is going to be much more short and shallow, than i think is being priced into the market. and to me, a lot of that is data dependent. that's going to be your payrolls, consumer price indices. the volatility will start to shift as we head into data points. >> so there won't be a lot more rate cuts at this point? is that when you just said? >> and that is the view of blakewin who is our rate strategy. and we follow for rate

volatility? what about rate hikes? >> that could certainly be down the line. obviously not in the near term. >> 2025, we don't know. i mean, i guess it's possible. >> that's the biggest swing from an economic upon perspective. it's much more short and shallow than the market is pricing. and more equities in the future. >> thank you, amy. i'm going to watch what you said today, next time you're on. >> sounds good. >> and i do remember. and it all came back to me. what you said last time you were on. but it is. it's episodic. thank you. shares of jetblue are rising in premarket trading. still sees revenues down 2.5%. but previously predicted a drop of 3 to 7%. so it's lowering the losses potentially. this comes amid booking for jetblue following the

presidential election. again, trying to get consumer sentiment, investor sentiment. but you can see, jetblue shares are up by 4 1/2%. bruin capital george byne will share his latest endeavor this. is an interesting one. you'll want stick around for it. squawk box will be right back. for today's aflac trivia question. how tall is the 2024 rockefeller center christmas tree. the answer when "squawk box" returns. everybody wants to build the best team and offering aflac can help attract and retain that top talent. you know we like that top talent. and listen, i mean you gotta listen. aflac gives employees cash to help with unexpected medical bills. it's prime time to add aflac. request a call today at aflac.com/prime

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(janet) houston we have a playroom! and now the answer to today's aflac trivia question. how tall is the 2024 rockefeller center christmas tree? the answer, 74 feet. there are over 50,000 multicolored lights on the tree, connected by five miles of wire. the rockefeller christmas tree lighting will take place tonight, starting at 8:00 p.m. eastern on nbc. all right. welcome back, everybody. global sports leader bruin capital is launching as one. that's a new football agency that is going to be

representing about 300 athletes and coaches. and no, we're not talking american football. we are talking soccer. international football, worldwide. and joining us to talk about it is george pyne, he's bruin capital founder and ceo. and george, i was trying to figure out igg you're launching this. and i guess it makes perfect sense, when you realize the valuations for the football club is going up. it's where the money is. and it's a very different kind of system than the one we're used to. so it's kind of ripe for disruption, i would think. >> right. media values, club values going up. also, with the fragmentation of media, these guys now have opportunity off the pitch that they might not have had before. these guys have brands. they have commercial opportunity. and we have nine companies. we believe we can have a lot to the equation. >> i was think being that. it's like willie sutton. and right now, the owners are

seeing massive valuation climbs. why don't the players and coaches get the cut of it? >> absolutely. it's not going to be on the salary but businesses. we've seen a lot of institution capital come to the space. eqt invested. providence equity. tpg was in with ca. now we have a french conglomerate. this is getting institutionalized. we feel great that we can play in the space. >> why don't we talk about the differences in the media value. and describe the landscape for us. >> we own a company called box the box. drive to survive, for formula 1. we do a lot of netflix and apple. and that's a whole new genre, with social media, that just didn't exist years ago. so these athletes can now own part of a company, own their

own media rights off pitch, and do that quite well. so we've seen that as an opportunity to create value for them. that's a different move in the agency world, too, to say, we're going to take you from nuts to bolts. this isn't just about getting you more money in your contract. this is about finding ways to create more value. and you've got these companies. i was looking through box-to- box films, you have engine shop, which is sports marketing. >> right. we're experts when it comes to data, social media, webs, apps, social media. the whole thing, consumer product and licensing. we add to the chain. >> what do you charge for that? i think the traditional agent fee will be 10%? >> we'll be creative, entrepreneur -- >> creative meaning higher? >> we'll work with them. and when you look at the valuation of the manning company. >> what is the valuation of

that company? >> it's 4 or 500 million. that's idea of talent and maximizing value that didn't exist before. we see more of that. when you look at ronaldo and messi. they have to monetize that. >> are you working with ronaldo and messi? >> we're not. but i'm just saying, they are guys that are brands, and we see that as the future. we see that as a great opportunity. and bruin itself. we have people on the ground in 24 countries, we do business in 71. these athletes we represent operate in 34 countries in leagues around the world. so it fits really nice in our platform. >> why international football? are you looking at other sports to do the same thing, to be marketing and representing? >> really every sport in the

world. we're one of the companies to represent the most cricket players in the world. so global football. this won't look the same as it did, in five years. day one, we're at number six or seven in the world. that's where we're starting. it won't be where we finish. we see that as a real platform. think about this. germany. top three sports in football. top three in germany, football. a real passion point. >> so if you have 300 coaches and players who getting involved in this, who are the biggest names. >> we have bruno fernandes, luis diaz. we have 10 guys that have a transfer value of over 40 million. it's very good. >> when you say five years from now, this will evolve, is that

going to include f1? is that going to include -- should i be thinking american sports? others? >> we're probably going to stick to football initially here. this group is in 34 countries. we think there's an awful lot of wood to chop there. that's going to be our focus. it's the biggest sport in the world, there's a lot of wood to chop there. >> i love where you see the opportunities. george, thank you. >> my pleasure. good to be back. >> it's good to have you in person. it's been too long. >> thank you. coming up, the latest read on the mortgage market. plus, salesforce after posting yesterday. we are talking about the numbers. as we head to break. here's the check on aira shares of foot locker. earnings and revenue. and the company lowered its full-year outlook and cut the top end of its comp stores. "squawk box" will be right

back.

mortgage data out a short time ago. and diana olick joins us with more. >> reporter: good morning, joe. yeah, potential home buyers are responding to the lowest mortgage rates in over a month. as well as lower homes for sale. applications to buy a home jumped 6% last week compared to the previous week. and that was to the highest level since january last year. that was according to the seasonally adjusted index. they were 21% lower compared to a year ago. but there was some noise. thanksgiving fell on a different week last year than this year. the average rate for 30-year conforming loan balances dropped. that's with loans with 20% down. applications fell 1% for the week. and were 7% lower than the same a week lower. more like the 3 and 4% range

that were being offered today. conventional refinance dropped. but fha and va rebuys. rebounded from the week before. fha and va might usually go to lower. positive economy from feds speakers on tuesday. today, of course, more economic data, adp, jobs ism, as well as fed chair powell. we'll be listening to all of that, joe. >> maybe andrew will just ask, how many more cuts? are you cutting at the next meeting? and maybe he'll answer. >> maybe. you can wish. it is christmastime. >> remember when andrew asked elon musk, about whether he cared for advertisers. that's a format, where

sometimes they just answer. diana, is there something going on globally in housing that is really scary. i've just seen some data. like things fallen off a cliff until some places. >> the problem is home prices inflated. and they inflated everywhere. whether it's new york or london. you had these record low mortgage rates during the pandemic. they fueled all of this home buying. now you have a bubble. and the big question maybe you should ask him today, is that bubble going to burst? are we concerned about that bubble in home prices. because we have no supplies still. and even though i said mortgage rates came down, it didn't come down that much. >> all right. thanks, diana. we'll be watching. maybe we'll get all of those answers. >> we might. >> and in fact, andrew is going to join us in a little bit. >> tell us all the questions maybe. >> maybe a few. when we come back.

congressman andy barr joined us to talk about president-elect's cabinet picks. we're downtowning down to private payroll data. that report is due. we'll get the numbers and the market reaction. and don't forget, you can join the cnbc financial summit on the 10th. where we'll talk about market trends, emerging risks, and strategic insights that can help better serve clients. just scan the register. squawk box will be right back.

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that's the power of curiosity. better questions can lead to better solutions. t. rowe price. invest with confidence. . all right. the vote for what many on capitol hill consider to be the most influential chair in the championship is taking place next week. two names are being floated as the top contender. congressman andy barr and he joins us. most people see you as the front runner to this. i want to ask you about what your plans for the financial services committee would be if

you take that chairmanship. >> good morning, becky. on election day in november, the american people in november sent a very clear message. and that's that the country is on the wrong track, and they want change. they want a better, brighter, more prosperous future for themselves. they're tired of inflation and tired of an economy that has left them behind. and while it is true that the stock market is at all-time highs and unemployment is down. the of the matter is, inflation has made life very hard for average americans, especially americans who are paycheck by paycheck. and now, the white house with the election of donald trump. so we have to deliver. we have to deliver on bringing price stability back, lowering the cost of living. and then unleash this economy. we need to give this economy the jet fuel so that wages

exceed inflation in prices. that's our goal. that's our dream to restore the freedom of the free world. >> you want to marry the trump- style populism with the freestyle capital of the world. i wonder what that means in terms of the bills you would put forth? we've heard about things like credit card cap, to make sure that you can't charge more than 10% interest on credit cards. that would seem to be something that on the face of it would limit bills for average americans. but i know that's not something you agree with. what do you agree with? how do you get at that? >> well, you know, freemarket capitalism is america first. freemarket capitalism is what made america great in the first place. we don't have to choose between wall street and main street. we need both and they need each other. so that's why i think i can build a bridge between those

traditional chamber of commerce wall street republicans. and the american populist who elected donald trump. and the impulse of lowering interest rates on credit cards is good. the reason why americans are using credit cards. the reason why americans are going into debt and have all- time high credit card debt. is because of max inflation. policies television overspending. so the impulse is right. but the truth is, price caps and regulations are not an america first strategy. the america first strategy is competition and choice. more competition and choice. more free markets. that will give americans the financial prosperity that they deserve and that they need. and they will lower cost and lower the cost of credit. that's what we're about is competition and choice and unleashing our capital markets. and when lenders compete. prices and the cost of credit

comes down. that's what we're going to be doing. >> maybe where you agree with some of the populism a little more is where it comes to the fed. you have said you are in favor of fed reform and fed accountability. what does that look like? what's wrong with what the federal reserve is doing right now? >> well, you know, i had breakfast with fed chairman text powell yesterday. i think he's doing a good job. we're at the precipice of that soft landing. but i told him. the reason why the election results came out the way they did was that the american people are not satisfied with where we are in inflation. let's not retarget inflation above 2%. let's get that down to 2%. he committed to me that the federal reserve board would be focused on getting us down to that 2% target. but the truth is, lowering the rate of inflation, will not lower prices. we need to grow the economy. so we talked a lot about regulation. and we've got to stop this end

game, that would really punish our banking sector and make it less competitive. i actually went to bossle, switzerland. that put out the proposal for harmonizing bank capitals across the world. and they admitted the federal reserve gold plated their proposal. went even beyond what bossle and the europeans were proposing. >> congressman -- let me just go through this point by point. when you say you want fed chairman powell, and you told him you want him targeting 2% inflation because that's very important. it sounds to me like you don't want him to continue cutting rates. and that sounds like it's in direct opposition to what incoming president trump will want? >> what i'm saying is, obviously, we do want a normalized monetary policy and gradual reduction of interest rates. but we obviously -- and there's

quantitative tightening as well. don't forget that. that is restricting money supply. that will also bring down the cost of living. >> but if we are not at 2% yet and they are cutting rates, the natural argument is they shouldn't be cutting the rates. they should wait until we get to 2%? if inflation numbers come out between now and the next rate cut next week, should they not cut rates if inflation is above 2%? >> i don't think they should. but remember, inflation is not just a product of monetary policy. there's also a fiscal policy element to it. and i discussed this with chairman powell as well. we in congress need to unleash supply. we need more supply of labor, more supply of energy. more supply of capital. supply, supply, supply, will lower prices. and that will give the fed the flexibility then to gradually lower rates, get to neutralized

rate and that will lower the cost of credit. soy we have a role to play in congress. the fed has a role to play. and that's the goal. ultimately, to lower the cost of living for americans. but also, to make sure that wages rise above the cost of living. that's also why we need a pro growth agenda. >> yeah, congressman. a couple of your colleagues wrote a letter to the general. talks about judy shelton. that president trump should be forceful in influencing the fed. sounds like that that should be about a rules-based approach that really is less -- puts less weight on one of the dual mandates and more on inflation, is what you're talking about. but one of the interesting things that actually, they quote judy shelton on. 62% of the gain in u.s. household wealth over the past

10 years 10%. which is what i've been saying if are years. when you keep rates at zero because of crappy policies that cause these transfer payments and things that don't spur growth, the fed ends up at zero. and then everything accrues to the wealthy. and what the left says they want to shrink the income gap, they're actually making the income gap worse, by policies that exacerbate and allow the fed to be at zero. does that make sense? >> yeah. that's true. it makes absolute sense. and it's very true. and what you have to remember is that half or more than half of the country is not invested in the stock market. we need more people invested. we have a savings crisis in this country. there's not enough people who have 401ks, because they don't work for a big company, or they're self-employed or have a small business. so they don't have a 401k. so we've got to fix the savings crisis in this country, to make

sure that americans have access to that miracle of compound interest. >> are we going to hear that trump is trying to tamper with the independence of the fed? is that going to be the end result if we do hear a lot of jaw-boning? i mean, all presidents have done that. but there are already people that assume he's going to do that. they're already clutching their pearls about how that's going to happen. i see it every day. >> well, i don't think there's an argument for removing the fed chairman. there may be an argument for the vice chair of supervision because it's a regulatory, executive position, versus the chairman of the federal reserve. but here's the major point is that the fed independents should not be confused with a lack of accountability. the fed is a creature of congress. we created the federal reserve act. and so this idea of fed independence, they can't be

held accountable. that's wrong. we need to hold them accountable. so when the fed enters -- for example, when the fed enters into these international agreement with the agreement in europe. there shouldn't be fed independence. they should be accountable to the american people through their elected representatives in congress. so yes, there should be fed independence with respect to conduct to monetary policy. but the idea that the fed should be totally unaccountable, that's wrong. the american people deserve a democracy, where they have an input into their government. so the fed should be accountable to the american people through congress. >> congressman barr, thank you for your time. and we we'll speak to you again soon, we hope. >> great. thank you so much, becky. >> we'll see the letter written by french hill who is also vying for -- who is going to get it? this guy? >> i don't know. i'm not voting myself. but -- >> do you have a preference?

>> coming up. one from arkansas -- he's from kentucky. i looked from where he was from. the sixth district. that's south of cincinnati. coming up, way south. another streaming service set to crack down on password. futures right now continue to go higher. looks higher on a points basis. but not so much next hour. next hour, andrew is going to join us from his "new york times" summit and sitting down with alphabet. founder and cofounder of a.i.

craig here pays too much for verizon reless. so he sublet half his real estate office... [ bird squawks loudly ] to a pet shop. meg's moving company uses t-mobile. so she scaled down her fleet to save money. and don's paying so much for at&t, he's been waiting to update his equipment! there's a smarter way to save. comcast business mobile. you could save up to an incredible 70% on your wireless bill. so you don't have to compromise. powering smarter savings. powering possibilities. all right. welcome back to "squawk box," everybody. max is the latest streaming service to cut down on passport sharing. warner brothers discover, which owns max, said it will start

sending what it's calling gentle messaging to users next week. it will add a way to add users to your could. i suppose by paying more. the company doesn't want to oversale the crackdown, saying it won't be on the level of netflix, but it could help drive user and revenue growth. so we're going to chase you, but we're not as bad as netflix? we want you to pay up if you're sharing your assword with somebody else? >> i don't know. how do they do that? how does it work? >> they know if you're using it in a different location. you can't be in, let's say, washington, d.c. and new jersey at the same time, somebody else is going to have to pay for a second password. >> but you could be on different occasions different places. right. i think you're allowed to use it when you're on the road traveling. but if you're constantly using it in two places at the same time. >> at the same time. coming up, salesforce

surging after the company reported better than expected results. i spoke to jim cramer last night on mad money. he had this to say about digital labor. "squawk box" will be right back. >> we are witnessing the greatest transformation in business in our history. this is a moment in time that we are seeing the creation of digital labor. and it's amazing what is happening at salesforce.

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check out the shares of gm right now. down just a little bit. the automaker warning investors about losses in china, some accounting moves. phil lebeau joins us now. hey, phil. >> hey, joe. this is not a huge surprise. we've known that general motors business in china has really taken it. it's really been hit hard, i should say, over the last couple of years. and now we know, to the extent of how hard it hit and how the company is responding. so it's going to be taking $5 billion -- more than $5 billion in noncash charges, two huge ones, in the fourth quarter. almost all in the fourth

quarter. some may spill over into the fourth quarter next year. and they're restructuring their joint venture operation in china. here are the two noncash charges. they're going to write down the value of the joint venture, between $2.6 and 2.9 billion. the impact of restructuring joint venture will be $2.7 billion. china lost $387 million in the first nine months of the year. there was a time when it was pretty steady, in terms of profit out of china, guys. i remember, at least, i don't know, 10, 15 years ago, every quarter, you would say, they made $500 million in china. not the case anymore. so they're taking these charges, restructuring the operations. >> okay. all right. as we said earlier, a lot of --

stay tuned. it's a good beat to cover. so what happens in the auto industry? >> i'm not going to ask you about jonbenet. but people watching the other day. you were the guy, the guy on that case. >> yeah. covered it for a >> covered it for a couple of years. >> the latest i have heard phil, they have not used -- boulder police were so completely incompetent they haven't used all the methods that are in use now and we actually might get an answer, supposedly, for who did that and using the dna. >> everyone would love it, if they can get answers. >> no kidding. we got to move on. but pop culture, we cover that, too. >> just after 8:00 a.m. on the east coast and you are watching squawk box on cnbc.

i'm here along with joe kernen. andrew is hosting the "new york times" conference but will join us for a preview it is a little bit. among thai days top stories, a few earnings movies -- movers, lacquer missed profit expectations and that stock is down 17%, that is a big dip from what we saw earlier this morning. shares of dollar tree are rising after the dollar store chain beat 3rd quarter top and bottom line . right now, you can see it is up by 6%. then food giant campbell's, company insider -- as new ceo. is going to be succeeding the current chief executive mark clouse on february 1st. he's retiring to become president of the nfl's washington commanders. campbell's released financial results, affirming annual sales and profit targets but falling short of expectations for quarterly net sales. stock is off by 3.5%. the u.s. airline executives are here to -- before a senate

panel. the senate permanent committee on investigations accuse the airline industry of charging consumers what they call junk fees. a subcommittee report released last month at american airlines delta, united, spirit and frontier brought in more than $12 billion unseating fees between 18 and 2023. i guess that is what you pay up if you aren't in the middle seats. or if you are closer to the front or not near the bathroom. >> some people don't like being near the bathroom. to me it is like, i think that they should charge more. it is right there. >> it smells disgusting. >> really, it is gross. >> and it brings the chemical smell to me. >> where does it go? >> it doesn't drop out like on a train. >> that would be bad. you could never look up in the air. futures of 175 points or so on the dow, the nasdaq up 134,

the treasury yields -- at this moment, 4:27. for more on the markets let's get to mike santilli at the nyse. morning. >> good morning, the s&p 500 is in this upward drift, it's been coming into the summer, seasonally everyone knows strong years finish strong but a bit of hesitation as we end the first half of december after strong week last week. 6100, for what it's worth, has been -- not a long-standing target, but as a near-term tactical thing, that is only 1% away, right here. what's been interesting over the last couple of days, the majority of stocks have been down but there's been enough strength, rotation toward keeping the s&p 500, making records at 55 record highs in the s&p year-to-date. look at the nasdaq 100 relative to the small -- over the last few days. this is what i mean. you see russell 2000 pulling back, adjusting recent gains whereas you see the old favorites in the first half -- first half of this year, the

growth stocks marching higher in recent days. that has been the comeback. meta has been very strong. of 6.5% since mark zuckerberg went to mar-a-lago, and take a look at the really hot names that have accelerated in recent weeks. relative to india, this is robin hood. robin hood is feasting off of this high transaction enthusiasm for trading, as well as online betting and video. and -- also perceived as being a privileged spot in the new regime. obviously a.i., for defense and all the rest of it as has become a little bit of a momentum it meme stock, having good results recently. although it is really expensive right now. kind of interesting there is this new momentum, anointed group that has been showing itself in the market. >> when is the actual santa claus rally supposed to be?

>> i am thrilled you asked. it is the final five trading days of the year and the first two of the new year. this year i think it will be christmas eve, through january 3rd. so it is sort of a seven trading day span. and really, the way it was conceived, is yes, typically quite strong on average, but also, if the market is weak during that period, it is seen as a potential early warning sign for the following year. i'm not sure that has held up since it was devised a few decades ago. that is where it initially came from. >> how does that play in an election year. typically an election year, you see gains from the election day, through. in this case, the stronger gains than we have seen in the past . how does it hold up if you have seen those gains that came in november? >> it actually, it is a strong

finish to december and sometimes a little bit of a giveback. the final stretch of the year, even an election year on average, tends to be -- as much as it seems like we have the stuff catalogued perfectly, there really haven't been many election cycles in the modern market area. >> what happened eight years ago pro-trump when he came in? >> it was strong, pretty much through the year. what i did find, i was looking this morning at what wall street strategists were projecting for 2017 and they were all very modest gains. only up 5% was the consensus at that point and of course the market came very strong with low volatility. this year, strategists are more enthusiastic than they were back then. take that for what it is worth it. >> thank you. jump in shares of salesforce -- raising fourth-quarter profit and revenue guidance, on the company's call, ceo -- he

talked positively about the rise of digital labor via a.i. agents. joining us to comment, gene munster, deepwater asset management, managing partner. you made some interesting points about this. so was the guidance positive, because there was outperformance already and the guide, higher for the full year of $40 million. looks like it is moderating from what they talked about in the current quarter, right? >> exactly, they gave full your guidance. only one quarter left on that. give you back into this, they actually lowered expectations by a percent for the january quarter and that just doesn't seem to pass the sniff test, related to the stock being up 30%.

basically, what gives? the answer is, guidance wasn't as good as it looked but the bookings number, essentially the bookings number was 10% growth. this year looking for 9%, the actual revenue growth was eight. i think investors car -- investors, part of this move higher, is this potential acceleration. but i think the substance of why the stock is moving like it is, is basically -- put on a lecture called 20+ minutes of potential around a.i. and you can go to that transcript and throw a dart at it and land on some incredible comment about how a.i. is going to reshape the world and ultimately reshape salesforce. and the punchline is that they believe in this digital workforce, these agents and that they are the only company that can bring it all together across data, cross segments of business . and so that is the

point. i think the light has gone on for some investors today, and i think even with the guidance, i think the move on the stock is evidence that a.i. trade is alive and well. i think we are in a three to five year bull market and it will end with spectacular bursting of the bubble but we're not close to that time yet. >> you point out that in your view, salesforce the stub -- missed a.i. and their growth flow to 8% from 18% in the quarter. it now, you say in may they got the joke and launched this agentforce what you are talking about now, allowing a.i. agents to work on humans but it depends on whether they can pull it off to replace humans. my finger hurts from hitting zero so much when i am on a phone call and they won't get me to someone. they want me to do this and it never works. i can never hear, they ask for the wrong thing.

if they misunderstand what you say, that they are trying to get to, you've got to call back and start all over. and the stone age, right now, can they do it, is it possible to do it? we are all happy to be talking to a nonhuman? >> eventually we are going to get there. deepwater, we also invest in private companies. yesterday and meeting with the company doing call center and i actually mistook the call center agent, as a digital agent and mistaken it for human . it is getting a lot better, the experience is understandable and ultimately, they're going to get it right. and that is what salesforce is talking about, is automating a lot of communications, initially in the sales price -- sales process and some of that is through voice, some of it is through text and they want humans to focus on empathy and kind of the creativity part of the relationship. so the simple answer is that we

as humans, are going to have to interact more with machines and we are going to use, also, consumers and businesses alike, use more machines to get done in the future. you won't even have to make that call, you won't have to be mashing the pound key, you're going to have to be -- you have your agent go and do your dirty work for you. >> we will see. anything else besides salesforce, that is on your mind? amazon? >> the big picture, amazon yesterday, aws announced a lot of hardware, i think it speaks to this question about, is invideo at risk related to competitive hardware, using some of amazon's hardware. but i want to emphasize that they are doing accelerators, different from gpu which invideo does. and i think the ultimately, what we are seeing with salesforce today, is a positive for invideo. this narrative that invideo is

at the cusp of being displayed -- displaced is not true. >> gene munster, thank you. eangcoming up, we've got brki job stata. november, adp private payrolls are next. squawk box will be right back. e between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there.

we are approaching november, adp private payrolls. ahead of that you see utures indicated up sharply. dow futures up 170, off the highs we saw this morning and most of that, actually all of it from sales . s&p is up by 18, the nasdaq by 145. november, adp payroll data just out showing a gain of 146,000 jobs versus the estimate of 163,000. the service sector provided the bulk of the job gains, 140,000 in total with goods producing sector, that making up the remainder of it. biggest gains came from education and health services, construction, transport and utilities, and professional services. adp also reports its jobs -- first year-over-year gain in pay, and more than two years for those who actually changed jobs. pay gains were 7.2%.

octobers job additions number was revised to 184,000 from the original 233,000. that change coming out the result of its latest orderly census data, all of this ahead of the labor department's big november jobs report that government job report that is set up for friday morning. where the street is looking for 214,000 new non--- for last month. for more on this data, and what it might mean for the number on friday we want to bring adp chief economist nila richardson . it is great to have you in studio. >> to be here. >> the numbers are lighter than the consensus estimate has been. what happened? >> manufacturing happened. we saw 26,000 jobs shed in manufacturing. this is a deeper decline than we have seen in the past months but the sector has been on the decline of the past two years. then if you look and flip over to the service sector, you are right about the summary, it was outstanding. steve would be proud of your summary this morning. but what you're seeing is less

energetic hiring and some places that had been really sound like leisure and hospitality, only 50,000 jobs created this was a stalwart of 23 and 22. it is now slower. you see the same thing and financial activities with interest rates coming down, more merger and the deal activities on the horizon. at the hiring is not there. so there is some softening trends, even in services. that i am watchful of but overall, healthy numbers. >> spending hasn't really slowed with services, so the same thing with financial services, as you mentioned, activities on the rise, looks like a lot of optimism to come. why do think employers are being more cautious on hires? >> hiring has been stunted. we saw this malaise and having over the summer, actually and in september with the first rate cut, was like the floodgates opened. we are going to hire again.

october, we know is a bumpy month, it is hard to interpret the data. now we are, i think we are seeing a wait and see attitude. >> to see what the fed does? you said it was sparked when the fed cut interest rates. we are back to the discussion that we don't know that they are going to keep. >> it keeps swinging on the fed, whether they're going to cut, whether they are going to stay and we saw a little bit of a push in the inflation numbers. there's one more thing i want to call out on the adp numbers for this month. large firms are dominating hiring. 120,000 of those job gains came from a large firms. smaller firms, more dependent on credit access, art seeing the benefits of the initial rate cut. so you know, these are hiring that was probably already in play, and we are still waiting for small firms to catch up. >> also the decline in manufacturing, seems like a big deal. you point out we have been under decline for the last two years when it comes to manufacturing. this has been something for incoming president trump, a big

part of his agenda is to try to boost american manufacturing. what happens, what plays out and how do you see this as an economist, if you have a weaker dollar, i suppose that helps but you are going to have trade issues, you're going to have tariffs, all those things converging. does that help the picture for manufacturing were not? >> it is going to be a mixed bag and we are going to be in tune to the labor market aspect of this because you have a couple of things going on. yes, you have likely higher import prices but you don't know where. is that final goods or inputs to final goods, that are made by domestic any fractures. that is going to be a key issues -- issue to watch. also you have a very cyclical sector in manufacturing, maybe renovating from a nudge of more rate cuts. so these things are happening in tandem. all we can say at adp is to look at the payroll data and see where the hiring is coming in and what sectors are benefiting. >> it is interesting to watch

this tied to the fed because often we think of the jobs market as so tightly connected to the economy. if people are spending, if businesses are spending, you see strong hiring. that may not be translating all the way through because we are seeing people spending and we are seeing businesses expend. >> yes, we are seeing the spending for sure and right now we are not seeing a pickup in credit card delinquencies that are concerning. but on the flipside of that, we are not seeing increased savings rate . i feel like we are in this almost timeout period and 2025 will be pivotal to the consumer. because that is when these trends start to catch up. the higher prices might put a little bit of a crimp on spending. we don't know if the interest rates will translate in a meaningful way for the consumer when it comes to housing or automobiles. so all those things are watch points still. of the laker -- labor market stays healthy, the consumer isn't decent shape. >> congressman andy barr joined us earlier, he's running to

head the house financial services committee and there will be a vote this week. he said the most important thing is watching is inflation, and as a result, once the fed keeps their eye and that, what you watch as inflation is the key number you look at to see how this plays out? >> wages. with adp, i'm going to watch wages. >> wages versus day . >> we saw this month for the first time in two years, a pickup of wagers. 4.8% for jobs data, 4.7%, sounds small ut that pickup means we are stabilizing at a higher weight -- rate of wage growth than before the pandemic. so is that wage growth consistent with 2% inflation and i would argue it's not. that will be an issue for the fed. >> thank you for coming in. coming up, andrew is going to join us with a preview of star-studded conference lineup and later we're going to talk markets and what to watch, into the year-end, with former chief

investment strategist jim paulson. i don't think we even need to describe him. we know him, jim paulson. you are watching "squawk box" you are watching "squawk box" on cnbc and build etfs designed to outperform the index. that's the power of curiosity. ♪♪ better questions can lead to better solutions. t. rowe price. invest with confidence.

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the futures this morning, still in the green. the dow indicated by 175 points. the nasdaq up by 150 and s&p up by close to 20 after both the s&p 500 and nasdaq set records once again yesterday. you got the dow down a couple of days in a row but down by less than 1% from its all-time

high. treasury markets this morning showing yields picking up a little bit. the 10 year is yielding 427 and the two-year is 420. and bitcoin last week, about 95,000, still at 95,815. when we come back, we're going to be checking with andrew, who is standing by at the "new york times" conference. >> meanwhile, a.i. >> and a.i. is threatening to disrupt just about every industry, perhaps none more than health care. after the break we will speak with ceo of philips about what a.i. can do for patients and about his company's collaboration with the mayo clinic. you are watching "squawk box" and this is cnbc. t my dat driven insights, 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.

i put in one of these earbuds so i can hear you on

both sides. >> every year i see it on your face, something is happening, you are talking to someone and they say something that is just so unbelievable. i think you know at the time or have a good idea and you know what i'm talking about in previous years, where you just can't believe what someone just said and it is going to be everywhere by tomorrow. who is it going to be from? today, with the lineup. you don't know, can you predict? you've got good questions. >> you never now. >> no, you don't. >> the great part, there are so many options. something can come up, that is the whole point of this, in some way. we are going to imagine the headlines and news. >> it's going to be on draft kings. >> by the way, you know who is headed here, sean from poly market is going to be here. maybe he can set up a betting line. >> on where it is going to come from. >> but to give you a sense of who's on deck, exactly, and

where that news can come from, we start the day and just a little bit with ken griffin. of course the citadel, we will tark -- talk markets with him. he was one of the largest, one of the top five republican donors, just behind elon musk this year. so we will talk about everything that is happening for this transition and what it means to the economy. later we will talk to open a.i. ceo sam altman about a.i. and where everything is going. a little after that, tennis legend and entrepreneur serena williams will be with us. then we are going to talk about our democracy, this country, but everything happening with the election and what happens next with former president bill clinton. then this afternoon, i think possibly one of the most consequential people when it comes to the global economy, j powell will be with us. we will bring that right here on cnbc. then we will talk to the most listened to podcast host for women, alex cooper, host of

call her daddy and the daddy gang. then later we will have a discussion about gop -- the great revolution happening in medicine, eli lilly ceo david ricks along with dr. fatima cody stanford, one of the leading doctors in the country. we will talk about mental health and the massive lawsuit in the uk and just a little bit with prince harry. of course, the duke of sussex, to talk about mental health and so much more. then we will spend time with the man who's in the hot seat, alphabet and google ceo -- in the crosshairs of the government to get broken up. then we will conclude the day with the one and only jeff bezos , amazon founder and of course now founder of blue origin, whose headed to the moon and hopefully to mars. so we've got a huge day set up for you and we will bring coverage throughout the day, right here on cnbc >> that's amazing, and i was quickly -- i wish i didn't have a last name, wish it was like

prince joe and he's not prince harry of sussex, he does not have a last name. like us mortals. he does i have a lasting. >> i was looking through the list. i think there was a material about the event, a couple of months ago that someone asked me to take a look at and i saw has had prince harry and i said, literally i thought to myself, i googled it. does he have a last name and how do you write it. >> i just did that. i have a last name, it is joe squawk. but he literally does not have -- that is so cool. seems a little bit day . i can't wait, can't wait for all of those things. >> we been talking about what

we might hear out of this. >> we will find out whether they are cutting at the next meeting. just as, are they doing it or not. yes or no. >> i will ask. i will ask and we will talk about the morning, altogether. >> we've been watching all day and we're looking forward to it. go get them. >> thank you so much, guys. just talking about medicine and where it is headed, and we are going to do this. a.i. is promising disruption in health care but potentially better patient care. joining us, someone on the forefront of this revolution, roy jacobs, ceo out of the netherlands. that is in the u.s. for the annual meeting of the radiological society of north america, so you can see where we're going with that. and that is, whether machines and a.i. can be better than a doctor, at all of these subjective diagnostic things that -- i've always wondered, what i rather have a false positive or false negative. i don't want either. i don't want you to miss something but i don't want you to tell me that i've got six months to live, unless i can pay you, then give me a year.

but will it be better or do you need a doctor? >> it is exciting to be here. thank you for having me. it is an exciting time in health care because we see many challenges and opportunities. i think everyone who walks into hospital, feels it and sees it, and a.i. can really make a difference. and i think it is not competing with the caregivers or people in hospital, actually supporting them. but we need to look for innovations and what you thought the imaging showed that , where i'm coming from, is that a lot is happening, already today that helps caregivers, whether it is a doctor with diagnoses or whether it is a technician and first time positioning with a.i. or a nurse giving her time, or him time back, spending more time with the patient, because we can do some reporting that they need to do on average, a nurse spends 20 times on admin tasks an hour and at that point we want to reduce to five

minutes and a.i. can really make that difference. >> speaking of histological studies where someone has to get it under a slide, look at it and interpret whether uc's glamis -- i know something about these things as you get older, but squamous or basal, if you can plug it in to a.i., you would know immediately. and even the surgeon would know whether he had to remove more. >> and it goes fast. a great example is pathology. we use a lot of slides that we look at, to do analysis. but slides are hard to put a.i. on, so you need to first digitize. so there is a revolution going on where we are digitizing pathology. >> and phillips is doing that. >> and we are doing that with nyu, they are really doing that at scale, and we are their partner and they also combine that with other data set so you can really get a full view of the patient and you can come to better diagnose for treatment of cancer and can do it faster

and even better. >> no question that this is needed. you can understand how this would make a huge impact and in a hospital setting like that, hospitals don't have a lot of money. most operate on profit margins of one to 2%. their expectation that will be squeezed tighter with changes that are expected to come down the pipe way. everybody is looking for ways to cut out waste and fraud, some of that has been supplementing the hospitals to some extent. so what happens, where is the money and it is not cheap to do this, to digitize and set up. >> but at the same time you see a lot of what a.i. can do is to help you drive productivity. so while we, in the simple way, delivering two things. better care, that is what we are talking about, how you can use the power of data and a.i. to come to a better diagnosis, to better treatments. but very important, the other side is how you can actually give better access to care in an affordable way. and a.i. also comes to help.

and a few examples. there is a huge overload on imaging needs, currently. patients waiting to get scanned. so we developed an algorithm that actually has three times faster scan time. you can actually double the amount of patience, you can do in the same hour, that you could do before. which actually means for the hospital, they can treat her patients, they can generate revenue and they don't need to buy a whole new mr, they can install and upgrade with a.i. algorithm. >> how much money do you need up front to implement these changes? up front fees that may be will pay off over time. >> we are flexible on the business model. sometimes you don't need any up front payment, it is just pay- as-you-go or pay as you consume. imaging is very common, that also the paper report, which is how the system gets reimbursed. actually we tie in and look at how we can really bring forward, for another example of

affordability, we have presented the next lou seal mr. -- helium free mr that has ownership that is 40% less versus traditional mr. >> those are expensive. >> it is a massive saving over lifetime that we are driving and it is a combination of hardware evolution and also a.i. that you deploy in the workflow, because the big savings to help the systems is how we can make more efficient workflow. a routine toss out and deploy a.i., because 25% of scheduling drops out, so in the patient that have shown up, that is a massive productivity right there. we can help hospitals with the latest a.i., to fill that quickly. so that they can make sure that they get the best revenue generation. >> like so many things that doctors and caregivers and nurses shouldn't worry about

being displaced, they should worry about being able -- they should be happy they will be able to focus on more productive things than the menial things that they have been doing. >> we are very passionate about giving tim back to the caregivers and that is where technology can really help. because as you say, for me, we are not competing with people and caregivers. there a huge shortage of those and we expect the shortage will also only increase for the future because the model is going exponentially up and we don't have enough doctors, nurses and technicians. so actually, we need to help to close the gap. bringing technology forward to take the tasks away. as i mentioned, the reporting. some of the diagnosis where you can do people reports but radiologist needs to report back. they currently need specific reports that use -- they need to use a lot of time for that. we can actually do it automatically. we have an application that we showed that pulls up the report

and the radiologist only has to validate and then they can go back to talking to the patient and explaining what the diagnosis is about because that is where the real value is created in making sure that the patient understands the right diagnosis is done. so you see a lot of investments along the workflows, where we can do this and another example is with children. and we have a great collaboration with the children's hospital looking at how we can make the experience for children better by using technology. that is creating ambulance and which they feel more at home which they have to take a scan and that is shortening the scan with the help of a.i., so that they can do it faster. and then also with the outcomes and readings, how to be a -- get the best outcome. you can look at different steps for the patient to make a better outcome. >> we are hoping that the promise of a.i. is all it is cracked up to be. i can do health care and that is all you would need to do, to make life-changing, world changing, almost quantum leap

for what we do with it. then put everything else with a.i. can do, but health care, so many different aspects i can think up. so many different places. diagnosis, therapeutics, all of it. be there will be real fairness sunday instead of fake fairness. may be a i can take a drop of blood and tell you, this is going to happen to you. your liver is this. there is a lot of promise and a lot of potential. thank you for being here and i think we're like the first batters in the first inning. >> i agree. we are just scratching the surface. this much more to come and it's promising. also, the risk of taking care of but in a responsible matter, there is a massive win for the patient and for the health care system. >> evers -- i decided i would rather have a false positive. thank you.

coming up, the rise of private equity and detect mergers and acquisitions. why pe is driving dataflow for the first time as we head to break. take a live look at rockefeller plaza, a few blocks north of year. the rockefeller center christmas tree is set to be late tonight. this is maybe the last time we will really care. "squawk box" will be right back. business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going.

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invideo ceo weighing in on the troubles at intel and future of the computing industry. speaking at a wired magazine conference last night, he praised former intel ceo pat, who retired over the weekend and intel as an organization. easy for him to do this, intel hasn't been able to catch the a.i. wave to nearly the degree that other companies have and share prices have been cut in half just this year. nevertheless he called intel very important, sayinghad

chosen cpus for many upcoming programs . he also said he could not guarantee that decades down the line, nvidia what it find itself in the same position that intel is in today. he made a point of saying the company was built for change and has completely changed course of the past. previously, in order to thrive. >> that is gracious. >> yeah, it's easy to be gracious when you are worth $3 trillion. >> but you look at things and okay, maybe -- >> we have seen the movie before with technology for sure. private equity is driving deal flow in the technology sector for the first time. leslie picker joins us now to explain why. >> reporter: hey, good morning. a perfect segue, that conversation into the story as well. private equity dealmaking running below 2021 peak but one area that has been dominating

was technology. check out this chart by goldman sachs showing the majority of tech acquisitions this year have been for private equity. you can see there are huge jumps from prior years which saw less than half of those level . activity levels overall our up 39% year-over-year but 2023 was an incredibly slow period for tech mn day. driver bringing -- finding company spurned by investor attention and focused on a.i. you see this industries like cloud and software, which may have a better shot of turning businesses around out of the public eye, and the advent of a.i. is capturing the wallet share from big tech companies, which would otherwise be strategic buyers. instead, these names are using cash -- to support a.i. ecosystems. r&d, chips and data centers, strategic's are waiting for the sidelines for a friendlier antitrust environment. larger names are already in the fdc crosshairs and i don't want

to draw more attention by bulking up further, through trench wall. one source said they have a trend where private equity will buy technology companies now with the goal of ultimately selling to a strategic, assuming the next administration is more conducive to that dealmaking. the key question is whether the regulation alone is enough to bring big tech and strategic's back into the m&a table. if so, could be a boon for tech over the years due to pent- up demand. >> that is what i was thinking and you answered my initial questions through the course of that. i would think private equity is making a much larger portion of it because everyone else is afraid they will not be able to do any deals. that there has been this freeze on any of the big guys buying anything. may be the expectation is private equity will drop in terms of importance very quickly. of that changes in this incoming administration next year, although we don't know where things stand when it comes to the big tech companies

because there's been a lot of the trump fueled view on things doesn't look kindly at tech companies either. what the question is too, is what does the -- from private equity companies, and that is the same thing and with a rather cell, ipo, all of this is riding on what the regulatory framework looks like for next year. >> it is absolutely a flywheel because private equity are in the business of distributing cash back to their lps. we have seen that ratio of distributions to essentially the realization ratio. well below previous vintages. there's still a lot of assets that these private equity firms are holding and not monetizing through ipos, three sales. this year alone, we saw nine ipos compared to the average of 2021 where we saw 84. so there's a lot of potential pent-up demand unless things

have structurally changed on that front. >> leslie, thank you. prince william used wales when he was in school and the military. >> william wales. >> prince harry use mountbatten. they can use it for official purposes that don't have hr age status. >> i thought it was mountbatten because of his grandfather. >> is children use cambridge because duke of cambridge. they use cambridge as their last name. >> you are joe new jersey. >> i am joe squat. top stocks on the move ahead of the opening bell. "squawk box" will be right back.

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we have a look at the morning's top market movers. >> lets check sales force, soaring 12% after the business software company and a.i. company be on revenues. it reported better than expected outlook. the ceo saying the agentforce, their sweet of products that

allows customers to use a.i. to handle tasks within the heart of a groundbreaking transformation, those shares are up 12%, responsible for a lot of the gains premarket. on the airline side, jetblue shares are up 7% after it boosted its fourth-quarter forecast following stronger bookings and lower fuel cost. the carrier expects revenue in the three months ending december to be about two to 5% lower compared to the previous estimate of three to 7% drop. those shares have climbed roughly 17% this ear as ceo -- pullback expansions to focus on core markets in the northeast and southeast. then we finish with carmel, those shares are down 3% after reported declining sales results in line with expectations. the company delivered strong growth and raised its range for the full-year revenue outlook that they have, shares her right now down or percent so far. keep an eye on her mel, spam, ditty moore. >> who doesn't know what spam is. how does that happen? howdy rares -- how do you raise

sales of spam? >> you get more people going to hawaii and enjoying everything over there. >> out of sight, out of mind. >> spambled eggs and ham. >> there is turkey spam. >> at least we know what it is. >> it is relatively healthy air. i don't know, i will have to try to see what it is like derek >> you can get back to us. >> i will report on it. joining us for more on the markets is jim paulson, the author of the newsletter paulson perspectives and former chief investment strategist from wells capital management. let's talk about what you are expecting. you think that next year you could see the s&p up 10%, but you think it would be even bigger, maybe 15 to 20% looking at the broader market or the

small cap . why is that? >> i do, becky. thank you for having me this morning. i think there is a lot of positive for the stock market. i think we will get a continued moderation of inflation next year. we are going to get the fed and ewing to ease, yields are going to come down. further on the bond market, money supply is rising. but i think the biggest untapped force we haven't used at, really in the cycle, is it is odd we haven't used it this far into it, is main street confidence, still remains kind of pessimistic and by this point, in past cycles it would've already come up. and confidence rises, a lot of good things happened on main street and wall street. behaviors break out and that leads to better economic growth and better stock prices . and i will give an example. i go back to 1952 and look at all of the months, the u.s. consumer confidence index grows versus when it fell, the total return of the s&p 500 annualize is about 20.5% during months

when it rises versus 5.5% during months when it fall . so rising confidence is a big deal and if anybody can finally revive that, i think we are going to see broader market participation. we are starting to see a little bit of that now with small cap doing better, equal weighted s&p. but i think that the confidence goes up in a bigger way next year and i think we are going to see some of the cyclicals and value stocks and equal weighted smalls, microcap caps, ipo activities, something that respond more to aggressive behaviors that do much better. so i think it is a year to rot in your portfolio beyond the s&p but i think the s&p --. >> i know that you are thinking that inflation will come below 2% next year. your one concern are tariffs.

you don't like those policies. >> i don't, i don't understand. to me, a terrorist is a tax . it is a restrictive force on the economy over all. i know a lot of people think it is going to relieve inflation. i don't see that at all. i think it could be a boost but it is a disinflation area force and the problem with this is one we raise taxes, everyone else around the globe is going to raise them, too and it leads to a global tax hike and i don't see how anyone wins out of that result. i don't think it is a good policy. >> thank you for being with us today. i always appreciate checking in with you and we will see you again soon. >> goodbye. very quick final check on the market . you have the dow up 183 points, the s&p futures up 21, the nasdaq indicated up by 170. we have watched treasury yields pickup, too. don't forget, today is the deal book conference for andrew. is going to be breaking news

throughout the day. you will hear a lot of stuff throughout this market day and we will have him on set tomorrow to talk through the biggest highlights of what he is seeing throughout the day. we got the 80 p number today, it was weaker than it had been . >> out of here. >> time for "squawk on the street." ♪ ♪ welcome to "squawk on the street." stocks take aim at the 56th record high of today, after a stellar session for tech earnings last night between salesforce, okta. powell speaks a deal book. we begin with crm. shares are surging, as the company highlights its ai growth prospects. >> openai's co-founder and ceo, yes, sam altman,