mean time, a quick final check on the markets. looking at red on the screen. dow off 160 points. nasdaq off 43 points. s&p off about 17 points. i want to show everybody bitcoin for a second . good tuesday morning. welcome to squawk on the street. post nine of the new york stock exchange. futures are weak as the dow exchanges it's losing streak to eight straight days. ten year yield hits a one year high before backing off a bit on a slightly softer than expected core retails sprint.

shares flat for the past six months. > tesla shares are up almost 90%. traders awaiting the latest rate cut outlook from the fed. bryan saying he expects the fed to stay higher than they otherwise would throughout the next year. let's start with the worst preformer. that is nvidia falling in to correction territory yesterday as we said, relatively flat. jim, you said don't buy yet. >> i think we are one of those periods where people are saying we have to reassess. the broad com numbers on friday. they were astounding. the gain that we had, made people think wait a second. maybe they are the right one. >> you were the outlook. it wasn't the numbers. >> no. the outlook is amazing. >> talking about 2027. >> that's a long term view because they have a clear window. matt murphy, last night on mad

money, saying the same. i think there is some confusion if you ask matt murphy, which i did, about where did they assistant? he said they are still the number one. it's just there is room for everybody. they don't necessarily -- they don't necessarily displace nvidia. these big hyper scalers have decided we have one gpu company which is nvidia and then we need to have custom silicon which burns less hot and is cheaper. there are three. they aren't zero sum. i think there are people who say i have to get off this horse. its going down. there is not much more to it, david. >> no. >> i had similar conversations this morning in fact. not a zero sum game. >> we didn't talk. we make sure not to talk to the

same people. >> we do. >> that's pretty impressive. >> and the whole idea is the cap is going up across the board and continues to from the hyper scalers. >> that's not changing. >> the numbers we have discussed are astonishing. >> billions. >> hundreds of billions really. that won't change as well. why are they no longer -- it's hard to say no longer. >> it's up huge. >> it's had a great year. do you wait until they really start shipping blackwell in, you know, in earnest? >> i think you wait -- no, no one will want to hear this. i love the stock. it'll be in the third week of march when jensen, the ceo has his gtc conference. talks about new reasons and thing that are going on. what it means to have video going on. i think video is big.

do i think it'll go through to 100? i don't think so. this is one of the great wins of all time. i people think they have to be on broad com. if broad com,. >> right. >> marvel tech and nvidia are all good because of the demand. we forget the demand. a lot of people thought amazon has the demand. >> one doesn't replace the other. they work in tandem. the way that broad com chips have been described as the worker bee chip that are good for certain things. >> i have a blocking and tackling. >> so. so, the market, you may see this disperse right now. that chart is shocking when you look at nvidia verses broad com. >> broad com even -- people didn't realize they were in. they are in the hyper scalers and marvel. the marvel announcement that

matt murphy was buying. he is a calm and exciting athlete. i will beat you no matter what, guy. he kept trying to say it's happening. it's happening. i don't think he got the word, then he just bought about a million dollars worth of stock. 72, report is 77 and said if you don't believe me here is a million dollars. that was his money putting in. i put in the form 4 and that was the bottom. that was a very important thing. he made the announcement about amazon and i don't think people realized it was we will use our own chips, have custom silicon designed by marvel and use nvidia too and there's still no distance between them. from both sides. i no one is saying that nvidia is doing displaced. >> part is because of the

super cycle which matt described to you. take a listen. >> we are in an unprecedented ai super cycle for ai as a service but also for the silicon tam underneath it. this is unbelievable. i have been doing this for 30 years. pc, smart phone, digital camera, cloud computing, you name it. this one is bigger than all of them. >> people have to understand. you know you hear -- he put out his litany. i remember when he took the company over. it was in tatters. there were other people that helped him and it was a remarkable thing. he came in, recreated the company. no one believed him. finally they do. not -- you came on in september for mad money. 6:00. we were out in san francisco. he said, look, i got it.

no one believed him. jensen is quiet now and people are saying something must be wrong. correction territory. correction territory. i went to a bottle signing for my wife and there was. >> over the weekend. >> yes. the total wine and -- in cherry hill which i recommend. it's the number 6 largest store. there was a guy that had made -- $100 illion on nvidia by buying it when i changed my dog's name. >> 100 million. did he buy mescal? >> he bought one bottle. >> just in time for the tequila tariffs. >> that chart doesn't show you the truth. >> no. >> you have to go back to 2010

to see the truth. you can't handle the truth. >> i always like that. >> what you have is a stock that you can go down, okay, we will move it over a little left so you have the peak here. that's 20. you can see that it can go down, thank you. it can go down quite a bit and people will freak out every two points. we will have that discussion many times. >> we have talked about the historic draw downs in the past. are you saying it could be in for another one of those? >> i think that you have to wait and realize that it's inexpensive on next year's earnings. >> i know. 5a dollars a share. >> sometimes. i think it'll be six but yeah. >> six the multiple is not that crazy. really you will have a significant. >> you don't need me today. he has become me which is daunting. i will go play for the mets. >> that's the worst news i have heard in a long time. >> i meant i would become you.

>> what's on that tie? >> i don't know. little thing. it is a pretty tie. >> forget the tie. nvidia -- a down stock. why? you know why? more sellers than buyers. the fact is that people -- they don't know that the nvidia cream and chips. they would buy cream. >> it's not a dow curse in motion? >> let it come down. there will be a -- i will describe this in my thursday meeting where i will say, all right. we are done. >> because between you and -- nvidia you can see what's been going on. >> u and h is different. >> that's another story we will discuss later in the show. >> yeah. i'm comfortable with it. this is what it does. this is what it does. people don't know that. they don't understand it. they don't understand broad com

is complementary. they think it's a zero sum. it's not the case. will news around a major funding round for data bricks. for that we will turn to d this morning. >> data brick is raising $10 billion at a 62-dollar value. this is one of the largest venture capitol funding rounds in history. makes them one of the most richly valued start ups. it was lead by thrive capitol. they will provide liquidity, make. they are an ai darling as many use it to analyze their vast amounts of date a the company, the start up released financials and it's announcement. 60% revenue growth in its last quarter on pace to generate positive free cash flow and 3

billion-dollar run rate. that is essentially the size of a block buster ipo but it shows there's plenty of money in the private markets for some start ups, especially ones in ai. letting data bricks and others push out a ipo and stay private. i did speak to the ceo a few weeks ago and asked when they might go out. he said the earliest was midnext year. i will talk to him again later today on fast money. don't miss that one. back to you. >> i begged him to go public when they were on. this is when they announced this great deal with sales force. a lot of people felt this data brick is directly -- >> i think there's a lot of excitement for data bricks in the -- entering the public markets. as she just said, i just for a moment because as you know i do have that keen sense for the

obvious. 10billion dollars.. we would be talking about it all day. a 10 billion at a 62 billion value. every minute. what will it open at? >> why are they giving it away at 60? could be 90. this is what i said. this is $100 billion company. when are you going to get that through? >> through what? >> i don't know. your tie and jacket. >> my thick head is what i would end that with. >> i was going to do a soft landing. >> you didn't land it. i was waiting for the blow and it never came. >> go sell nvidia. make my day. >> ten billion dollars ipo. when is the last time we had that? >> where is the rush?

>> that went public. >> who is doing the jersey -- you have that yet? >> the jersey drones? >> i don't know, jim. i thought it was you. >> plenty of news on the corporate front. phizer and e-bay. a calln otesla. don't go away. 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. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities.

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service sector. use rates, a big miss ear. 76 point 8. 76.8. we have to go back a way. that is the lightest level since last month but that was revised. we are talking about april of 2021 to find lower rates. we see that interest rates on the longer maturity are unchanged. retail sales wasn't bad but it was a disappointment on several levels. we have business inventory, housing market and it's the first day of a two day fed meeting. tu aer on the street will rernft a very short break.

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think about what they are really saying is the end state of the fed funds rate will be in the 3.5 range that. was a big change in the last six to nine months. that's because inflation doesn't get down to sort of lower 2s until 26. that -- length of time they have to stay higher than they would otherwise be. >> that's bryan with becky at

the trading floor on squawk. talking about the fed. two day meeting. we got to 444 on the ten year. we have been watching that last few months. i understand that people want to be very concerned about the future after the cut. i really am not buying this. we put through tariffs. the tariffs raised the price of the cpi. then they can't cut. if they don't put tariffs through and the -- question get a break-in housing we just saw -- i know it's only a million dollars house and 950 but it starts somewhere. we get more apartments to come in and we have big inventories. we will say, okay. we had that flip up in inflation but that's over. have you to see what the president elect will do. why do we have to focus so much on what will happen next year for the fed when they have to react to what the president does? why do we say let me divine

what they are thinking? a man -- you are going to divine what he is thinking, president trump? peter navarro. i know he isn't there. >> you are still seeing him in your mind? you are reliving it. >> peter navarro is on this morning. >> i saw your buddy, peter. >> okay. he was my profess or. i'm a loyal person. >> i know that well and i appreciate it. >> i like you for a long time. >> what is your point? >> he is hoping that the drill baby drill. >> he said it like five times. >> the price of oil, take it to 50 and that will off set. >> and i talked about tariffs. >> and a trillion dollars of investment by doesn't sound like disinflation. >> claw back of some of the money that went to some things. >> the trillion dollars. i come back to the announcement yesterday from -- that was money that was coming here

yesterday. no offense. where else was it going? >> i think that is totally true. the think the most important thing is we don't have the workers for this stuff. what are -- these kidding? we don't have a good birth rate. we will have immigration reform. you need people to fill the jobs and we don't have it. >> back on the robots. we need the robots. >> give us some robots. >> we need to unload the truck with a robot. why do we have to go? >> it's good. >> we're a spinoff. we're a spinoff. the spinoff gets to do things that the parent didn't. >> we will need more ads on the spinoff.

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let get to a mad dash. we have a little more than three minutes before we start trading here. want to talk a little steel. >> new core. it's the biggest and the best. i want to say we always keep

hearing there is nothing that indicates there's weakness. that is because we aren't looking hard enough. new core does an intra quarter run down of where they are and they took the numbers down today. they are -- i am in shock to some degree how much. they expect 4th quarter earnings in the range of 55 to 65-cents. they had earnings in the third quarter. you can see how it is just declining so rapidly. you can say that's because of mexican imports. i don't care. the price of steel is coming down. here is something i didn't like. they bought 13 million shares of the average price of 168. 122. they got that wrong. >> they got that wrong. >> that -- there's weakness in steel. steel is only -- only about 100,000 people employed anywhere in steel. steel does matter. it shows there is some weakness somewhere and also say, look.

china is flooding the world with steel. they put out a number last night. we will do 5%. great. >> 5% growth. >> yeah. great. 5.18. >> since that's real it'll be all export driven, manufacturing to your point. >> i think you can buy everything china. not. >> you wouldn't be a buyer. >> peter navarro by the way. >> back to him. >> you are very loyal. >> you are. >> he was on the air. >> he was. >> i have reference to the show that was on before us. i think you would see that china may not fare as well unless xi comes here and is a little bit of a mending not unlike trudeau. >> it's amazing the political tumult. canada, germany, france. south korea. >> seems different.

>> look. what to we have -- when you see a canadian minister go to florida. the president elect says hey, why don't you be the 51st state and you have some people with a little pride say this is not what we want? claudia from mexico. strong -- she said strong letter to follow. >> yes. >> yes. >> i have always respected her work. she was incredible person to have in government. >> by the way.

we got canada's cpi. goose egg pretty much in line here. looking for two. we continue to get prints from all over the world. let's get the opening bell here at the big board. the ceo will we on closing bell overtime later today. at the nasdaq brokerage. also celebrating a 25th listing anniversary. >> it was just kind of -- it was the original. it was an after thought. now it's bigger than hp or hpq. watch some of the spinoffs. >> that's what they are advising. spinoffs do well. what are you doing to my jacket? >> you never forget it. >> would this make you feel

better about my jacket? >> now you feel good? >> joining the carl and andrew. >> my gosh. let's do that with the thing. >> now you like it. >> i just -- i got to -- a jacket like that once in pueblo in mention mexico. >> let's talk about tjx. i think its breaking out here. i did a lot of work with them. it is 125 to 140. it was a transition to a great stock. it was a transition -- a set up. >> i will go somewhere that we have been discussing the last few days. >> pbn's? >> the health suns. united health care down again. you may have seen cvs yesterday. signa. we have been discussing many of these in light of that horrible cold blooded murder of bryan thompson a couple of weeks ago

and the nationwide -- i'm not -- frankly i suffer for the words how to describe what that reaction has been and what's happened. >> it's horrible. >> it has worried some for the -- their business models overall. there's been action in congress. >> how about the president elect? >> the president elect during a long press conference discussing the pharmacy benefit manageerns. he calls them the middle men. >> we are paying far to much. we are paying more than other countries. we have laws that make it impossible to reduce. we have a thing called the middle man. the horrible middle man that makes more money frankly than the drug companies and they don't do anything. we will knock down the middle man. i will be unpopular after that statement. i don't know who these middle

men are but they are rich as hell. question are going to knock out the middle men. we will going to get drug costs down at levels that nobody has seen before. >> well. the middle men essentially are pharmacy benefit managers i think is what he is referring to. we saw weakness in those that own the cvs, and then express. >> yeah. >> these companies are not without their friends. by the way they all resent the middle men. >> they are -- a company that has done a lot to be able to make so smaller drugstores get product. >> care marte. >> cvs stock has cratered. wall greens has cratered. remember the alleged buy out.

>> i think sycamore still probably trying. it's very difficult. >> moving target. >> to imagine a buy out of the full company given the many challenges and the size you are i talking about. the equity check. so many different potential gating issues as i said. not that they wouldn't want to keep trying. you know my understanding is that drug prices have grown at half the rate of the cpi over the last ten or 15 years. >> thank you. >> because of medicare part d. >> right. >> has kept it in check. so, the president elect may say that but it's not necessarily -- equ,a ting with what's happened to drug prices. >> they are not the cause of the inflation. they always are willing to finger the united health. >> and the drug -- all the

drug company stocks are up. we should get to phizer. >> they made the number which is now means they beat the number. also the new york times. giant companies took secret payments to allow free flow of opioids. this is a fantastic investigation by the new york times that once again says that these companies wanted to stop selling opioids, got paid under the table to do it. my. these are -- talk about public enemy number one. >> you know carl. you -- people work at these companies and they don't just come into a criminal enterprise. >> let's go to a criminal enterprise that does nothing but -- we are just a tax on the system. they are not but right now i have never seen it this bad for them. cvs is a great company. cvs is part of the -- viewed as being part of the problem of the cost of health care. they have no friends whatsoever and when you go to cvs we all know what happens which is --

customer service, candy aisle. i went over to one of them. i said i can -- i will try to get it open. i just didn't want to hear a customer service candy aisle. >> that's not where the problem s. >> no. much of the stock price declined. etna and the misses in terms of the medical. >> i was just saying the frustration. >> that's part of the company. >> if you go to amazon and do a huge number of same day. >> ru talking about retail experience. >> people at home don't watch us every day. they need to know that these are things that -- it's not -- it's the front of the store and the back of the store. >> we have a piece on our website this morning about wal- mart testing body cameras on employees. >> yes. >> to try to deter theft. >> you need to put people -- a lot of people at the back. >> you have to put people in

jail. that's what you have to do. >> that's a new regime coming but that's a federal regime. >> not here in new york. >> you don't know. >> you get -- you get a -- ticket, appearance ticket and back you go to do it again. >> i know. let's talk phizer. i will talk about that. i want to talk phizer first. the stock is having a rare up day as our viewers know. it is been a rougher year for the company stock price. now down 8.6%. they gave us guidance. they had a conference call. you can see. full year revenue guidance. adjusted -- range of 280 to $3 a share. they are talking about as well, the 500 million expected to

come in terms of their goal of delivering 4 in net operating expense saving. >> that's very impressive. i think that the doctor has done a lot of good worldwide. he has done many things that i think are positive. i think the issue has been what about the numbers? >> right. >> can he make the numbers. >> and he has jeff smith. my understanding is they have been having conversations. >> that's not a price of course. >> the window is open for nominating directors. unclear to me if that will actually happen. i think that -- perhaps on the star board front they are happy with some of the cost cutting. frankly if you want as they -- as jeff smith said in the interview a couple of months back to improve their r and d spend that's people and that's a long time. that is a long. >> we hope -- you hope the sea change pace. >>

a lot of people felt they paid to much. -- if he is correct about his road map we will say he got the last laugh. >> i view is they overpaid but maybe they can figure it out. >> look at johnson and johnson. aaa balance sheet. >> this is a great company. you will say wait a second. >> haven't done anything. >> i know. captain obvious today. >> lily has been acting like a dog. 3.5%. >> the sector overall is at the lowest relative value in 16 years. >> we pulled the trigger and talk about it thursday.

bristol meiers. it's the single best property out there and they bought it. they didn't pay to much. they will be able to make the 14 billion and make it back. this is the first drug for bipolar -- not -- approved for -- 30 years. it works according to everybody. i do a lot of work. >> some of these companies are pitt sized. >> i think that you are onto something. these companies, some have gotten so small and they could immediately -- you know they have huge sales forces. you fire your -- the sales force. >> there's a lot of cost savings to be had. >> it'll happen. >> i think we may start to see some mega pharma. >> you have any detail? >> nothing i'm following.

>> i think they are all worried. >> i think they don't want the call. they are all doing their thing. it makes sense not to. they were able to say they won't let us do anything. handbags. >> glaxio is only 71 billion. up 18% gets a five year high. jim mentioned this briefly. santa fee. chron's disease. >> disease. people have had to struggle with it. they are going right to three. >> it's a lot of years.

this year has been a goodyear. 20 years not so good. >> we have to go back to the middle man thing. 2025 is going to be the year where i -- do you remember when clinton destroyed the nursing home industry. he said i'm taking i'm and destroying-- with the doctor and he said we will wreck t -- president elect trump follows up about knocking out the middle men he will. he will because these companies will eventually loose their support in congress. >> there's already bills. >> when you have the socialists and the far right together you are in trouble. >> we don't have the democratic former labor department. i do agree that when you have that kind of come together over them you don't want to be in that business. >> no. tough business. >> let's say you legislated them out. they will tell you listen we are vital. everybody is vital. i think that j and y is more

vitel and the patient is more vital. you want vital? drug company? and the patient. >> okay. >> how about quantom com computing. >> i'm going to google. it is up again. it's up again. >> i know. we are selling some into it. we don't believe the hype. some of those stocks. typy -- i'm -- i'm not -- going in. i'm not going there. >> no. >> don't get distracted. people have obviously pivoted away from -- the big breakthrough which was nvidia.

again it could be many, many, many years if ever that you have. >> working. it does seem to have lent a lot of buying power to the stock which is a huge stock. >> youtube and about searching and the justice department. >> we keep mentioning gm crews today. tokyo is named as the first international city to test the taxi. >> i believe tesla has the best data on full self driving and tesla seems close to president elect trump. >> yes.

they are up to v13. that is the full -- part of the self driving. >> look. it's making potentially leapings that weren't available. >> this company that used to be really good stock and it's called nvidia. now -- by the way i have a new dog. >> marvel? >> broad com. >> what? >> tony. >> tony? >> ragatoni. >> clever. >> yeah. >> i got it. >> these are both dogs we rescue from a kill center. i know you like to get away from the stocks. >> i really am happy to talk dogs. >> when i call mr., mr. ragu he thinks it's micro strategy.

he is confusing. what? mr.. that's what we call micro strategy. you moved computing $3. >> i didn't move anything. >> you moved it $3. >> don't talk to me about that. >> a couple weeks ago remember -- you know toman. >> i love him. >> owns 9.9% of the company. >> i told you that. >> filed a g and -- i reported of course high likelihood it could turn to a d. looking for direct ears. a lot that have is now sort of in stasis. if he takes the ambassador to italy he won't be an activist. >> looking more -- my understanding is he is leaning toward doing it. >> i don't think he is happy

with craig's job that he is doing at wynn. he is a supporter as i am out just going to say t of steve wynn. >> and you are too. >> these conference calms were incredible. he even took one of the prc and went up. said go to hell. never seen anything like it. until the president elect who peter navarro. >> that's three navarro mentions this hour. i like it. >> he was -- when i first met him. >> dow down 250. that's nine straight loss itself it holds u and h responsible for about half of the decline in the past few sessions. ten year, hanging onto 44. the vicks above 15. stay with us.

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oil under pressure. west texas on 70. maybe hopes for a cease fire. oxy was up 20% for the year back in the spring. now down 22% year to date. that's the lowest since the middle of 2022. dow down 250, s&p back to 6050. we will get stock trading jim next. (♪♪) everyone has goals and dreams. and everyone deserves a way to get there. wherever you're going, getting there starts here. state street invest in your future with dia, the only etf that tracks the dow.

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dad: you can talk to me. son: it's been really, really hard for me. let get to jim. >> we will have to go through them on the show. explain to people why it's not the end of the world because think act like it is and it's not. we have a profit taking period and that's what happens sometimes. we have micron reporting. that's an out liar that's going higher. we have -- i think it's not nearly as dire as people believe. >> hard to say dire when you have more than doubled for the year. wouldn't you argue? >> yes. it's the end of the year. people may want to lock this

things. who knows where capitol gains taxes are going to be. i happen to think that it's prudent to take a little off the table. i have been the biggest backer of the semi conductors but i think it's prudent. >> so tonight. >> tesla is up 4% again. alphabet is up 2%. >> i was going to give you one that david introduced me too that i'm crowning the new king of vinta. >> pay pal. >> we love that. >> no. this is better than all the others and i think that -- paypal is spewing cash. this guy alex chris is doing a great job. like when marvel. everybody should have known what matt murphy buys a million dollars worth it's not idle. tonight we will address the semi's and i think paypal has much higher to go.

>> barcal's adds end block. >> i do like paypal more and no -- i'm not -- no dis-- i'm not casting anything bad about bloc but i think the one is -- paypal and watch the drug stocks, watch pepsico. people will start thinking they aren't going to cut? after -- that means the economy will slow so we have to buy things that are doing well on a -- that's how stupid this market is. >> we will see you at 6:00. >> and david i don't -- is it -- it must be flame. >> at least he is consistent. >> i took this off the rack. i was like jim will make fun of it. maybe he will forget. >> took it off the rack at tgif. >> he doesn't forget. >> we will go over to tg max and i will get you something that looks really nice. >> poor mo.

went to ross stores this weekend. >> we are back after this.

♪ ♪ ♪ yeah, right. good tuesday morning. welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla and david faber live at post 9 of the new york stock exchange. take a look at stocks. the dow continues its recent losing streak. as we've been talking about, s&p is under pressure, too. 0.4 and nasdaq pulls back half a percent, as well. take a look at treasurys and data in just a second and also talk about retail sales and the ten-year yield a little bit lower just before the 4.4 level and it's buying mixed on the curve and the five-year yield is firmer. we are 30 minutes into the trading session. here are some movers we're watching. shares of nvidia under pressure

again trading in correction territory which means they're officially down 10% from recent highs. the stock down for four straight days now and down eight of the last nine. shares of pfizer moving higher after raising its utlook and we'll take a look at what's ahead for the stock with 2025 with some announcements today and shares of united health care moving lower. this stock among the biggest drags on the dow and accounts for more than half of the dow's point losses on the month. it's been a big part of the story lagging. >> a busy day of data. we have retail sales and let's get more from rick santelli. hey, rick. >> good morning, carl. indeed. these are october reads on business inventories and remember, this is the first month of the fourth quarter and many were being looking for a big, positive number potentially as many large entities try to get in front of the notion of how tariffs might affect future pricing and we are expecting 0.1%, carl and it came in

exactly 0.1%, and last month it was exactly the same even though it was downgraded to zero, unchanged and this put a positive spin on the gdp numbers for the fourth quarter when we get them in a little over a month. also out is our december read on national association homebuilders market index and for that we head east to diana olick. diana? >> rick, builder sentiment in december was unchanged from november at 46 according to the nahb survey. anything below 50 is considered negative. the index stood at 37 last december and carl harris said in the release, while builders are expressing concerns that high interest rates elevated construction costs and a lack of buildable lots continue to act as headwinds and they anticipate future regulatory relief and of the index's three components, current sales conditions were at 48 and it dropped one point to 31, but sales expectations rose

three points to 66 and that's the highest level since april of 2022. sentiment increased month to month everywhere except in the west and that's where home prices are the highest. the builders noted no change in incentives month to month, still 31% with the average cut being 5%. the use of incentives was 50% from november, sara, back to you. thank you, diana olick. another piece of data was retail sales and a good snapshot of the consumer and overall a pretty good number. 0.7% increase monthly on the retail sales number. that was a the bit of a bounceback, but october got revised higher, as well. so that's also good news. october sales, 0.1% increase than the previously reported 0.4% increase. a lot of it was in autos and autoparts and remember, these numbers aren't adjusted for inflation so price increases in that area could also have an impact. here's the monthly gainers, what

looked really good this month in terms of where the spending was and there's motor vehicle parts with the unusual 2.6% monthly increase, but online, a good sign for cyber monday and black friday and holiday spending. sporting, hobby, instruments and books was also a big one. garden supplies and not surprising and that was a rebound effect. as far as where the sales were weaker on the month, a few interesting stories here. miscellaneous store retailers and department stores in particular were weak in that sector. food services. this is the only services part of the entire retail sales report. it's mostly goods, so we pay attention to it, and it was weaker on the month. clothing, not such a hot spot and grocery stores also lower. reflecting some less spending on groceries. the only other number i'll tell you about of importance is the so-called controlled group which is what feeds directly into gdp, and it was pretty decent.

0.4% and that was in line with expectations. it should bode well for the kind of growth that we are experiencing this quarter. this quarter, and i'll just end with it's unusual, david. we're going into the fed meeting and day one to have the consumer in such strong shape and the economy in such strong shape for the fed to be cutting interest rates. >> right. which means they won't be doing it for long. >> that's the market takeaway on all of the strong data and firmer inflation data which is that, okay, they'll cut because they promised so they have to follow through that way and also the market is pushing them in that direction, but after that they'll do less. so expect the dots to reflect fewer rate cuts for 2025. we really just don't know, right? because if the fed does get put on hold, and the next thing is are they going to hike? are they going to cut? what are they going to do? >> if, in fact, they are fairly broad or deep and not to mention

deportations and questions we will not know the answers to, for some time potentially. >> the other thing we don't know the answer to is how sticky inflation is right now even without those policies because there's been a lack of progress on the disinflation front past the big progress that we got over the last year and a half or so from the 9% inflation down to the 3% inflation where we are stuck around these levels. >> so what does that mean and why do we think that's the case? is it fair to assume that perhaps it's a new normal? >> maybe, and that could suggest that the neutral rate or the rate where the fed doesn't expand or contract the economy should be higher and that's one question for them. if i had a question for them at the news conference, does the recent strong economic data in light of your very high interest rates and aggressive monetary policy convince you that rates should be ultimately higher. the other reason why, david, it's been a strong economy. so the biggest pressure on inflation would be if consumer

spending weakened and we're not seeing it. another chart for you and a lot of anecdotal area and what companies are saying. morgan stanley did their annual global conference in december and they tracked among the transcripts, the most common words. consume strengths were really good. 50% expand to accel rate in the new year. these are health efficiency and margins and the list companies and investors right now, but they talked more about consumer strength than they did about tariffs. they talked more about consumer strength than they did about ai which is interesting and they're hopeful for 2025. the other sort of piece of anecdotal in the research today was the bank of america fund manager survey where they go out and talk to all of the fund managerses and that, no surprise, reflects more expectations for higher global growth and higher profits and i threw up the charts just to show

you what's on the mind and the worry factor, tied for first place on the tread war and on inflation which are not unrelated, but fed hike on inflation was actually how they broke down the category. the headline out of the survey was that cash levels fell below 4% and it triggered what b of a called a sell signal for the second time in three months. it speaks to the changing sentiment and the broader enthusiasm in sentiment, yes, people are putting more money into the equity market, expecting better growth prospects and fewer expectations of recession which is a big part of the survey as well. so even though they're looking out for a tail risk, a lot of it is known knowns. >> also the fourth biggest overweight u.s. over europe in, like, 15 to 20 years. that's been a story we've been telling. a much bigger share of global stocks now are u.s. stocks because of the outperformance of u.s. stocks. i think it's 45% overall which is the highest share it's been

in a while. >> et's turn to the broader markets and that would be nine straight trading days. yesterday it was the 11th straight day of negative breadth our next guest says rate cuts and better animal spirits might be enough for earnings growth and avert a recession. morgan stanley chief investment officer joins us to talk about the upcoming year. lisa, good to have you. welcome. >> you're welcome. >> it does sound like you're looking for growth and there's a possibility it slows before it reaccelerates. >> absolutely. look, i think one of the things that folks aren't completely processing here is we've got a two-speed economy. we've got a portion of this economy among the mega-caps and among the wealthiest households who don't need rate cuts, but then we have smaller, mid-cap companies. we have the bottom 60% of u.s. consumers who actually do need

rate cuts, and so if we're moving into a period where, you know, the economy is hotter. our best guest is inflation is also going to be hotter. we're not going to be able to get rate cuts and consumers may quickly find themselves disappointed about the great promises about how inflation is going to continue to come down, and that becomes a source of mitigation on some of the animal spirits around spending. >> so what do you make of this sort of, across the street, this tight cluster of year-end targets for '25? why is it so concentrated? >> because i think valuations are extraordinarily high, and it's just not prudent from a fiduciary perspective for strategists to be throwing out there that we're oing to get a third year in a row of double-digit returns. this is an extraordinarily

expensive market on profit expectations for next year which i remind everyone, that's growth of 15% in earnings which this s&p 500 has not done sense 2021. so very high valuations on very high expectation. it's a tough formula here, and if we don't get rate cuts, those multiples are going to come in, and so i think it's prudent for strategists to be more measured even if they're constructive and reasonably bullish like we are to say this will be an average year. it will be a 5%, 7% grinding year where we will have to wade our way through the mosaic about headlines about policy, some of which are going to probably come out more like swiss cheese than a blanket, and what i mean by that is you're going to have to

pick and choose because there will be carveouts. carveouts on tariffs and which companies, which product and categories are impacted and i think we're talking about a single-digit market at best next year. >> lisa, i feel like you've been cautious and sort of warning for a while now. nobody expected a 26% outlook for the s&p 500, but where have you been more surprised at the positivity we've seen in this market and through earnings because i think you said last year at this time, mark was overestimating things. yes, we've been wrong and there's no doubt about it, and i think the fundamental place where we've been wrong has been resilience of gdp growth, and fundamentally, i think we're in a very interesting period in history where, in pack, high interest rates were still rattive to those sectors of our

economy leak those large mega-cap company, like the richest households who had excess cash and had been spending it and so that's the piece of this has been gdp resilience at the high end that has kept this economy going. i don't know if we're going to be able to -- to, you know, keep relying on that as the singular engine. i do believe we need to do the handoff and get some breadth in this market, but that's probably going to take lower interest rates and we're not going to get them if we stay high. so we're in this kind of catch 22 here. >> yeah. well, we'll get some fresher looks at q3 gdp, at least in the coming days. lisa, really appreciate it. if we don't talk to you, happy holidays. talk soon. >> happy holidays, guys. >> as we head to break here is the rad map for the rest of the hour. president-elect trump taking aim at pharmacy benefit managers.

cvs and cigna hitting new lows. >> markets have rallied since the election, but homebuilding stocks haven't. down about 8%. we'll discuss what's ahead for the group as the fed does get ready to cut rates one more time. >> also, stock valuations and odds of a recession and where the s&p will end up next year. some exclusive results from the cnbc fed survey as this edition of "squawk on the street" continues. ♪ ♪

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>> we're paying far too much. we're paying more than other countries and we have laws that make it impossible to reduce, and we have a thing called the middleman. you know the middleman, right? the horrible middleman that makes more money, frankly than the drug companies and we'll knock out the middleman. i'm going to be very unpopular after this. >> i don't know who these -- i don't know who these middlemen are, but they are rich as hell, and we're going to knock out the middleman. >> some health names falling on those comments from the president-elect yesterday saying these, quote, middlemen operating as pharmacy benefits managers and pbms are driving up costs and might be eliminated. pbm came under a house oversight investigation for their nfluence over prescription drug prices and investors might be expecting more scrutiny from the

incoming administration. pfizer's albert bourla commented this morning. >> the president from his first term for the middleman, the pbms, but he wants approximately see, and it's very clear. he wants savings, more importantly. it will pass to the patient which is they will see dramatic reduction in the costs they are experiencing with their medicines, and it seems to me that he's very committed to make it. internationally, i think that the other countries should step up and pay their fair price for innovation, and we are really focusing on doing that. >> shares of cvs, cigna and unh, and pfizer, he did affirm '24

guidance and gave us '25. >> many benefitting in part, perhaps, because they would be beneficiaries if you were to get rid of the middleman. let's stick with pfizer as carl said. the company's profits were in line with street estimates. the company is looking to turn around and of course, the stock is down -- it's down as much as 8.5% and let's go with this year. let me look at 20 years since i've done any number of times. joining me is the security analyst and he has a $33 price target and bye rating. when do you think of the guidance? let's start there. >> i thought it was good. 2024 give a conservative start and raised quite a bit during the course of the year. it's a little more normalized and more clarity on paxlovid and the antiviral for covid would perform in 2025 and a lot of questions on the vaccine and overall it's a good start and we were saying over 255 and it's a good start and all of a sudden

you need to deliver and raise over the course of the year and the pipelines is where a lot of questions are because the focus is what are they going to do for 2025 to 2030. >> a lot of that pipeline depending in part on cgen or integrating that and obviously a very large acquisition and one that people believe they overpaid for and how optimistic are they on the pipeline and its ability to deliver. >> i think it's the deal was controversial how much they paid and 10 million in also by 2030. weigh can see them getting to that level and a lot of the stuff they're working on now and maybe they can exceed that amount. some of the other deals that they did before and cgen is more mixed results so far and i think cgen comes through if the biohaven acquisition comes through with the collaboration and those are things that they can throw the company around and it can take time and show baby steps to make progress that people are building for. >> our team will build on a year of execution in 2024 is what the

ceo said in a statement. he used discipline again in another statement. i feel like this is a direct answer to some of the complaints of star board, right? they took a big stake. jeff smith talked a lot -- we reported a lot for the need for discipline and cost-cuts. this is a start, but execution is going to be key. what does the world look like from here to appease an investor like this. >> yes. i think they did a nice job. they raised the numbers and it's a conservative start and they did a nice job. i think people feel good there, but a lot of these products are going away and so delivering on these is not enough. the pipeline was mixed in 2024. a lot of important events in 2025. a lot of focus on the obesity efforts and a lot of work in oncology and some internally to pfizer in breast cancer, in bladder cancer and a lot of different areas that are working

and those are the assets they can deliver. >> they can do revenue. they have $17 billion of small molecule revenues, so pills that will go generic in the next few years. we know that's going away. what's replaying those and that's really the main questions. so these assets that are in the pipeline, too, and we've seen a couple and a few more to come and at least they can maintain the revenue base and hopefully go on through then of the decade. ? you said rpgs there are questions around vaccines and the president-elect didn't mention it. what do you think the questions are? >> the nomination of rfk jr. in hhs and whether there are new mandates or the strains of the vaccine in time with whatever the strains that are prevalent in the environment at that time and there are timely vaccines and people get them. i don't think there will be

major policy changes and their guidance assumes no policy changes and even beyond policy changes just the rhetoric and there's more discussion arne the value of covid vaccines and more anti-vax and people who got vaccinate last year, and i think that's a risk and 5 billion in sales for the end of the year for the covid vaccine and maybe that comes down a little bit and it's probably down to the four billion arranged, so a bit of a headwind and it's falling off a cliff and then the antiviral if more people are getting vaccinated perhaps there will be more with the peckup. so net-net. covid sales will be roughly flat this year to next year, taking account for someone-time items that helped them this year, and i think that's not unreasonable and it's optimistic, but not unreasonable. >> not the greatest year for your coverage universe certainly

versus the broader averages, as well. >> do you expect better tiding, so to speak in 2025. we put in a broader outlook in guggenheim and looking at the large-cap pace and there is a large discount compared to historical norms on a relative basis to the s&p. some of that is certainly different from d.c. and policy questions, but as we are very bullish on the outlook for the group over the long term just because the innovation we're seeing and the precision medicine and the new therapies that are very critical with the medical issue. >> beyond gop ones. >> that sucked up a lot of the conversation, and i think we're seeing a lot of advances in oncology and a lot of areas with cardiovascular diseases and neurology and rare diseases. a lot of questions on drug pricing. a lot of questions on how these companies give back relative to the middleman and some of that plays out, i think this group

should work and be on so the lilies and novo -- >> does it make you feel better that they went to mar-a-lago to dine with trump and rfk according to axios. >> i think it made sense, to have the -- albert bourla worked with the trump administration to get the covid vaccines approved. i think this is obviously a very important industry for the country, and i think it's in their best interest to work with the administration so that their interests are looked at. we saw this in 2016, too, a lot of concern as the first trump administration entered d.c. and it turned out to be okay for the broader industry. >> right. >> ultimately, if you're delivering exciting, new innovation that's helping patients live longer, better lives the dow will be rewarded and that's what they need to deliver regardless of what the

dynamics will be. >> thank you. appreciate it. >> check out shares of walmart. jefferies is naming the company a top pick for 2025 saying walmart will continue to benefit from relative spending next year. jefferies is raising the price target to the a street high of 111. it would have served them well, and shares of walmart. speaking of retail our frank holland is at aex. >> we are here at a fedex facility and a key deadline and if you want to order presents from a major retailer and also we'll cover the investor angle and i'll tell you what they have to boost their pfirot and margin during during the holiday season. that and more on "squawk on the street."

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♪ ♪ ♪ ♪ welcome back. i'm sylvana henao with your cnbc

news update. the governor of wisconsin ordered flags to be flown at half-staff until sunday in the state to honor the victims of yesterday's shooting at the abundant christian school in madison. a girl killed a teacher and another student before taking her own life. investigators say a motive is not clear yet. ukraine's security service claimed responsibility for killing the russian general who led the count re's nuclear defense force. russian investigators confirmed he died in an electric scooter explosion on a moscow street today. his killing is one of the highest profile assassinations since russia invaded ukraine in 2022. and china announced the extension today of its visa-free transit policy. americans and passport holders from dozens of other countries will now be able to stay in parts of the country for as long as 240 hours and that's ten days without a visa. the new measure took effect immediately. sara?

>> okay. thank you, progress. sylvana, thanks. >> shoppers are entering the final stretch for holiday shopping and our frank holland joins us live from a fedex facility with a look at how the shippers are gearing up for a very busy week, frank. >> definitely a busy time of year and 106 million packages a day are being shipped from thanksgiving to christmas this year. that's a 29% daily increase over last year, however, i don't want this to be misleading and that is attributed to the holiday peak being five days shorter this year. >> it started on cyber monday, and while we are keeping constant contact with our shippers so we can completely understand what it will be and we've increased our capacities and made sure that we have to deliver the packages on a daily basis. >> walmart, and this is the final day to order from the major retailers for christmas

delivery without having to pay extra. the deadline varies depending on location and amazon says it varies depending on product. take a look at this, holiday surcharges are expected to be profit and margin as they charge their big retail customers an additional fee per volume during the holiday peak. also this year, we're using gig delivery companies to deliver same day and next day. that includes shipt owned by other thattet and veho and jitsu. i spoke to the veho ceo who said his proposition is based on delivery speed and providing retailers with customer data. >> it's a shifting of markets between thinking about logistics as pure cost center which is a pure commodity and the whole question is how do i spend the least all of a sudden to thinking how do i mack myself the maximize my shipping spend.

>> it is good for fedex and ups along with carriers like swift and prologis. i also talked to companies and they're seeing a freight out of potential tariffs and we'll have to continue to wait and see how it plays out. i do want to make it clear, if you're willing to pay up, shipping on december 23rd is still an option for both fedex, ups and amazon, but of course, you have to be willing to pay up. >> the express extra charge there. i'm looking at a fedex chart and it's basically flat, and it hasn't done anything in the last year and they're very sus septic with what's happening in manufacturing. the fact that we've had pressure manufacturing and that hurts fedex and at the same time online spending has been good and how do analysts and how does the street break down how fedex benefits from what we've seen which has been robust spending online? >> sara, you're bringing up a very important story.

the less than truckload trucking business. a lot of that comes from manufacturing and we've seen a quote, unquote, freight recession for the last two years and we have seen a big uptick in e-commerce and consumer spending and it's a double-edged sword. will they spin off the trucking business as a way to increase the shareholder value for both, you know, the e-commerce business and also the trucking business. so that's really what analysts are focused on right now. right now is looks like the ltl business has 30% of profits and of course, we had big news with honeywell spinning off, as well. a lot going off and those are coming up thursday and maybe i'll bring it back to you. back over to you guys. >> one of the key corporate earnings and frank holland covering fedex. let's get news from d.c. with emily wilkins. hi, emily. >> a report that was just released from a bipartisan group of lawmakers and it's reg mending a light touch with ai

and the ai task force which was established by speaker mike johnson earlier this year are finally out with the big year-end report and rather it sets groundwork, and one of the few members of congress who actually had experience in ai before getting elected. he chaired the tank force and said that the report details a road map for congress to follow to both safeguard consumers and the continued u.s. investment and innovation in ai. the report does see some rules for the government including preparing the electrical grid to imagine a coming resurge in the data centers. it suggested more federal funding for energy infrastructure and the energy technology development, plus they name both geothermal energy as part of meeting that need. the report also covers national security and expanding ai training at the pentagon, plus

they recommend continued government support for ai research and development. while both johnson and senate majority lead are have high hopes for ai legislation, few bills have actually been passed into law. republican leaders are saying current laws are enough to provide guardrails around the industry, although there is a federal data privacy law and that is a concern given the amount of data that the ai models are using. david in. >> yes. they are sucking up an awful lot. emily, thank you. still to come, we'll break down nvidia and it's down double digits, in fact, from what was a record close only last month, and as you can see, down another 3% as of 10:36 here on the east a bk wereacin three minutes.

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some of the mega-cap tech names moving in opposite directions, tesla up more than 30% in december and nvidia continuing to drop in today's session. dom chu is tracking the action in tech. good morning, dom nah it is the magnificent 7 world. in the last month as sara points out, the move between tesla and nvidia has been stark. just on that one-month period, tesla shares are up about 48% versus nvidia's drop of around 10% and that gap just seems to be getting wider and wider over the course of the last few days. so that's something to pay attention to. now when we talk about the individual moves themselves between tesla and nvidia, with nvidia shares slipping further into the correction phase down 10%. we are now trading below the 50-day moving average or medium term trend line even though it's up 160% year to date and nvidia just yesterday got put on the focus or u.s. 1 list citing ai leadership there.

that's big and meanwhile on the tesla side of things we did get an update from mizuho going into an outperform rating and trading sharply above its 50-day moving average or longer, medium term trend line so tesla shares are very much in focus and by the way, without these two names, mag 7 in general has been on an absolute tear and just over the next two days, the number of stocks that we've had along the lines of apple, amazon and google, alphabet up 40%. 50% and 31% for apple, but then carl, apple and alphabet also hit record highs in today's session before pulling back. amazon hit one yesterday. the only two that are still not there over the last tw o days. >> between tesla and media it's been a reversal of fortune in terms of mag 7 performers. >> he needs to spend more time at mar-a-lago. although respondents raised

outlook for the s&p next year there is growing concern about stocks being overpriced for scenario. our steve liesman is here to explain. >> you've got that right, respondents see stocks as the most overpriced they've been in at least the past 17 months. 69% of the 27 respondents say stocks are somewhat overpriced going into the outlook for the soft landing which we've achieved already and that's up 64 and equities are correctly priced and see them as cheap right now. strategist kumar writing, quote, com pained compareded to the 7%, they're twice as much for the s&p 500 operating margins peaked in mid-2021 are in decline in tariffs and into pressure. the average of the respondents pegged the s&p riding 3% from the current level to 6257 in 2025 and up by 7% by 2026.

this group is typically very pessimistic on stocks. and on the economy, 68% say hey, we're here. this is the soft landing and 29% is the probability of a recession in the next 12 months. that is the lowest level in at least two years. that reflects a better economic outlook, although inflation forecasts creeping higher. unemployment forecasts is down a little bit, but gdp forecasts are inching higher. 2.5% is the number for this year and with probably the strong first quarter north of 3% and that's up a tick. 2025, 2.1 and that's the three for the prior survey and 2026, that's new in the survey and 2.1% with the next two years is a little bit above trend and continued high inflation and that's the number one threat to the expansion and the global economic weakness almost on the other side and the administration's fiscal plans are three and people wrote in, by the way, the tariffs in that regard in terms of the threat to

the nsion followed by size of the deficit. just two more quarter-point cuts are built in and that's one fewer than the last survey for 2025. the fed seen reducing rates to neutral by 2026. guys? >> it is an interesting backdrop for the fed to be cutting interest rates with the economy looking up, stocks maybe being extended or more people are at record highs and the outlook for recession dimming. i mean, it's going to be -- i know he's expected to cut tomorrow, but the language around future cuts with his backdrop will be interesting to hear. >> you're right, sara. this is a controversial cut here that we have. 93% in the survey say the fed will cut and just 63% say the fed should cut. so there are those who think the fed ought to hold it here, but almost certainly there's an expectation that the fed is going to embark on something of

a pause here which, depending upon where you think neutral, it's kind of -- we haven't talked about this yet, sara, but a hawkish pause. carl? >> agree. >> steve, looking forward to tomorrow steve liesman. we will drill down on homebuilders, we'll look at the cent weakness and how it's related to rates in just a couple of minutes. (agent) we've always said never sell a house in the winter. that's not true. with opendoor, you can skip the showings and get a real cash offer. you are disguising my voice, right? (director) ahhh, of course. (agent with altered voice) foof, just checking. (vo) it's true. opendoor makes selling easy, in any season. i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform.

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♪ ♪

>> let's dive into the housing sector. the homebuilders are big underperformers since the presidential election, down 8% since then and one of the worst performers last week, as well. what is ahead for the sector in 2025? john lavalo, building products

analyst joins us now and he's bullish. has what has the weakness been about? one, i will tell you, look, the 2025 outlook to come out and as it stands today we're still bullish. you have rates and trump coming into the presidency and the prospect of higher interest rates clearly spooked in folks, and there's been a bit of inventory build in the markets which has become a headwind and we heard valuation is too high and dovetailing from the past segment when you're trailing at nine times earnings that is hard to make the case in our view. >> but you are making the case. >> oh, great. so why do you think that they're still cheap because they've had a good run. >> they've had a good run, but earnings have gone up and it has very little to do with multiple expansion and we think that nine times earnings relative to history where the stocks have traded 11 to 12 is punitive and on top of that the business models have changed so dramatically that we've argued

unsuccessfully so far, but these stocks do strategic petroleum reserve deserve a valuation rate. >> what's going to happen on pricing because that's a big election issue and a big inflation issue and it's been all about low inventory, right? inventory is still low and we're at 1.68 million units of single-family units in inventory across the country and the historical average is 3.75 and we are at full standard deviation below and they're higher in inventory and the texas where it's building and what does this all mean for pricing and it depends on what rates will do, and if rates stay where they are, the homebuilders will do very well and they will attract buyers with incentives and they'll buy down mortgage rates and the smaller and the existing home market doesn't end. >> toll and horton on friday from one of the peers on the street. one of them were rates and the percentage of the workforce that is immigrant is at a 20-year

high. how much are you watching immigration reform? >> i have full respect for my competitors and that's a valid argument and it could be a headwind. however, our estimates would suggest we're still looking at 22 million units in the u.s. if you look at the global financial crisis you can come up with numbers well in excess of that. even with immigration possibly becoming a headwind, there's still a lot of room out there and a lot of demand out there. >> all right, john. we appreciate you joining us with the bullish view. john lavalo with ubs. >> almost every sector is red and the dow is on pace for nine straight losses. that would be the longest losing streak since the late '70s. russell's down over a full percent here. that's close to a four-week low, and the s&p down about half a percent. stay with us.

doors lead us to new opportunities. your dedicated fidelity advisor... -surprise! -for you, mama. ...can help you open those doors. by proactively reviewing your entire portfolio. with an eye on taxes and risk. doors were meant to be opened. doors lead us to new opportunities.

your dedicated fidelity advisor... -surprise! -for you, mama. ...can help you open those doors. by proactively reviewing your entire portfolio. with an eye on taxes and risk. doors were meant to be opened. bitcoin continues to hit new highs. it is up 150% year to date. this as investors get ready for a second trump administration.

so how much crypto exposure should you have in your portfolio? our own sharon epperson joins us on set. i wish i owned some in my portfolio. >> a lot of people are wondering if they should. bitcoin and other crypto currency have soared since the november election and take a lo at the index made up of mostly bitcoin and also xrp and solana along with smaller crypto currencies. it trades 24 hours a day and it has doubled since the election. many advisors are reluctant. in april 2024 when crypto prices are half of what they are now, an annual survey of 2,000 financial advisors found more than half of advisors, 59% said they don't use cryptocurrencies or plan to in the future while more than a quarter said they don't use it now, but expect to in the future. about 12% of financial advisors said they use cryptocurrencies based on client requests.

less than 3% say they use crypto based on their own recommendations. they're increasingly using exchange-traded funds for crypto exposure and over a third use it in 2023 and they expect the vast majority over the next year and advisors say whether to have crypto in your portfol have the time horizon, risk tolerance and financial goals. >> interesting from a demographic perspective. i would think that for the younger generation it would be their first introduction in some ways to the financial marks. >> that's exactly right. financial advisors say a lot of it is generational within the financial adviser community, as well and they may be more reluctant than the younger ones because the clients are asking them for it and the other factor is education and if the adviser doesn't understand then they're not going to recommend it, so the more exposure that they have and the more certification in understanding block chain and digital assets say they're more likely to recommend it.

sharon, thank. sharon epperson. keeping an eye on the markets with the s&p down half a percent and the nasdaq similar percentage decline and nvidia shares as you said continue their recent decline, and tesla continues to go the other wye. up some 92.2%. we're back right after this.

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we are looking at the down folly appeared we are diving into unh. we're looking has some are saying our problems as nvidia opens. we have the national retail federation giving us tips as concerns. tesla is u