dipped to 101,000, 102,000. >> recent discussions among u.s. representatives, rand paul have brought forth the idea -- >> i just saw this. >> -- of elon musk replacing mike johnson as congress. >> apparently you don't have to be >> -- of elon musk replacing mike johnson as speaker of the house. >> there you have it, folks. as the world turns make sure you join us tomorrow "squawk on the street" begins right now. >> good thursday morning i'm carl consistent ania at post nine bulls looking for the stocks to hold and the vix, second highest single day surge ever. ten-year yield, 4.74 road map begins with the bounce back stocks looking for a higher open

after yesterday's fed-fueled sell-off >> micron and lenar are both tumbling lamb weston also crossed the tape also not looking so good we're also on shutdown watch elon musk and the president-elect both forced gop lawmakers to scrap a bipartisan spending bill. that leaves congress scrambling for plan b it does raise the odds of a government shutdown. >> let's begin with the markets. after yesterday's sell-off, this is the comment from the fed chair that did grab wall street's attention >> i would say we are, though, in a new phase in the process. as i said. so and that's just because we have reduced our policy rate by 100 basis points we're significantly closer to neutral. we still think where we are is meaningfully restrictive from this point forward, it's

appropriate to move cautiously and look for progress on inflation. >> like a dark room full of furniture, scrim >> look, i think they're data dependent, but they made a prediction, and the prediction was not right. they should have just stayed data dependent they could have looked at the long bond and realized, wait a second, we're on the wrong track. and signal that. they even have people they signal to that they were getting more concerned i think there were so many people positioned poorly that you got this david, you know that had you been more thoughtful, you might -- if you were going for 3.4, you would have to pull back ahead of the meeting just because of where the real bonds were, not where his stuff was. he got it wrong. >> what did he get wrong when you say that the messaging. >> he got the messaging wrong? >> because what happened is he has been -- it's an old -- he had been data dependent.

we have a data dependent fed and they chose not to be data dependent. and that's what happened so their message was off they're not wrong. but all the people who thought that they were going to be kind and dovish, i mean, they were black dovish >> don't like that show. >> it was a fairly orderly decline, is what people are saying >> an orderly decline. what would a disorderly decline look like? >> it wasn't like the momentum crash of a few mondays ago it was in line factor moves were not crazy. betas, momentum growth, value. >> oversold position is the most since march of '20 we did have -- there's a couple times that things have not been that bad if you go back to 2023, we can find that there were other times we were minus seven, this is

what the oscillator i have, and a time to buy. s&p moved up substantially, if you bought today, in september, and you know, what i say, i say listen, let's do a little buying >> you have also been somewhat more cautious lately >> i see the stuff as junk >> we talk about multiples we talked about apple yesterday trading at 41 times earnings >> trying to to my speep i said, listen, i can't tell you i want to buy it here. i do think there's this nuclear quantum, okay, these are - >> that's not a great sign at all. >> no, and you'll see it this morning. you'll see a couple companies that are just -- they're flying. if you look at the crawl, i urge people to look at the crawl. you'll see a lot of companies that are telling you, waite a second, it's still too hot >> dan ives is now covering the smrs just in case. >> he did initiate oklo. >> because he doesn't have enough to cover between the old

automakers >> is he going to cover righetti that's a company -- there's something, these companies, can i just say, when you have, listen, i would love to do nuke but i can't, and they're the biggest nuke company in the world, how is d. wave quantum, how is that going to do quantum when we don't know what quantum is it's like nonfungible tokens did you know what a fungible token was? >> no. >> that's what i'm saying. >> are you equating quatm computing with nfts? >> why not we've got ben talking about ibm having a call option on quantum. >> they have been working on it for years. >> and they'll keep working on it for years >> the release google put out about quantum, willow, yeah. you know what, i'm weeping over willow >> it could be many, many years.

it could be that the are advancements made that will allow them to have something working in a number of years and by the way, there are many concerns i brought some up yesterday. my gosh, the number of concerns in terms of a national defense perspective if you were to actually be able to have a working quantum computers in a robust way you could break all the nuclear codes, too again, these are the kinds of things people are concerned about. i don't want to say you can do that they are concerned about those kinds of things. then there are companies that are obviously very low-quality that have been going up on this whole quantum surge. >> like newscale, perhaps? that's a $5.3 billion company. promising advances from reactors >> mike santoli has been talking to me about that one that's really, a $3 billion market cap this thing was in a different business not long ago. reminds me of that refrigeration company in the 90s that became

an internet company. >> remember wave four. i said it was a short, the s.e.c. thought i was short it, i was thought. before they went after me, the company went bankruptcy. >> let's get back to the broader market, the fed. let's get back to the fed for a minute let's finish that conversation as well. >> just want to say, nukk is the last one i'll mention. nukk is up gigantically on placement. it's a punch line. a punch line >> what's the joke >> there is none, which is what's really a shame. i flew all the way to california to man my own nucleus. >> what do you think the mix was in terms of reaction to the fed versus the cr, this barrage of posts by elon musk >> look, i think there are people who feel that, yeah, maybe these guys want the market to be soft come in at a good price. maybe the resolution is filled with grab bags and that's over i liked it they got a real guy, musk.

do you want to mess with musk? i'm not messing with musk. i tried it once. i was panted you don't want to be pantsed by this man >> no, i marvel at musk. how can you not? he has now, i think, you have to argue, it's unprecedented, the level of power that he has accumulated. we talked about him for many years. i talked about him being the most consequential businessman on the planet. frankly, if a year ago you said to my he's also now going to be deeply involved in the politics of our nation and setting policy, i would have looked at you askance and said what? here we are. and here we are. so he runs spacex, obviously incredibly important company don't forget starlink and the important it has geopolitically, not to mention the war effort in ukraine. he runs tesla. you go on and on thou he apparently helps run the u.s. government. >> have you ever seen anyone like him in our country? >> no.

>> other countries have people like that. >> unelected to be anything? >> no one was threatening members of congress or saying no legislation can be passed until january 20th >> rasputin was not elected. >> they said the barrage of posts is a new playbook because it conveyed information to members of congress in a snap. before they had to filter through conservative media >> it's a brand-new ball game. >> never been anything like it it's unique. he's unique. he was before this, but where we are now is, again, just new territory. >> is there anybody who thinks we don't have government waste everyone is voting >> well, the post out of the doge account yesterday, i mean, a new stadium in d.c it's not a new stadium it makes you wonder whether they read the bill at all >> that's a very good point. i do want to make a point that there are a lot of people who are hopeful that he can do

something about the $36 trillion that we have >> that's the national debt. >> yes >> not going to be able to bring that down. they're just not going to try to add to it as much. if you just can keep it level and then you can obviously grow it economy, you can reduce your interest payments and it's no longer a concern for the treasury department. >> maybe he shames people who are giveaway guys. >> the idea their going to be able to cut $2 trillion from a $7 trillion annual budget is an interesting one to imagine there are some in congress who do everything in a ten-year increment, and therefore you think, that really would only be $200 billion a year. they seem as though they want to go for 0% of the budget, which between social security, medicare, defense spending, i don't know how you get there >> just got higher >> all i can say is he represents a span of thought in this country that this government can get its act

together >> rand paul is on the tape just now arguing that he should be considered for speaker, which would be allowed >> we looked it up on the internet thing it says you can become speaker without being a member of congress >> you checked >> yeah. it's never been done doesn't mean it can't be done. >> i'm getting everyone presents >> i'm the ceo of spacex and tesla and also speaker of the house. >> are you also okla or nukk >> he covers more than dan ives. >> covered the fed, covered this showdown with congress, and we'll get to corporate news too. micron shares take a hit on their guidetrance the quarter. we'll hear what the ceo had to say. >> musk also dresses better than dan ives >> we'll get to lennar, conagra, in a minute. ♪

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these lower than expected guidance for the current quarter and a surge in ata center revenue. here's is last night's call. >> data center storage can sometimes be lumpy and we expect the data center storage demand given the data center buildout that is happening continues to be happening, therein by a.i. demand growth will also return toward growth in the fiscal second half. >> jim, this price would be the biggest drop since 2020. >> i felt for sanjay because he predicted a turn in all businesses the memory was spectacular that's a much bigger part of their mosaic and that's terrific, that's data center but pcs, we have been saying pcs are weak, cell phones are weak, and sanjay got it wrong. for that, his stock is being

punished and the people who own it are being punished. what i feel badly about is i have talked to him about the memory he always said if it got to these levels, the company would be doing so well it is, but they have these other businesses and they didn't turn. we don't have a timeframe for when they will it was very disappointing. >> the fiscal q2 sales now guided to $7.9 billion i'm looking at a downgrade from b of a >> that was the only one that downgraded in his face. >> consensus is $9 billion, so that gives you a sense in terms of guidance. that's why the stock is down gross margins, 38.5%, jim, is also below and to your point, the weakness on the other parts of the business >> forecast so badly he did not do what i wanted him to do. he just had to say, i can't predict pc and i can't predict cell phone, but the reverberations are over

the place. even for arm holdings, which is in this battle with qualcomm >> the trial continues >> i just felt bad for sanjay because i remember this time last year, he kind of lectured me, so nice, he called me, like 4:00 in the morning. and it was jim, you're too bullish with the memory. i wasn't high band width memory turned out to be great. what i wasn't bearish enough was cell phones and pcs. >> hard to predict the cycle of innovation in some of those tools. in terms of guidance lower, jim, micron today, lennar, conagra, lamb weston. there's a few. >> lamb weston, we have to talk about. they put out a release, one of the meanest releases i have ever seen about the change in management lennar was difficult we have stewart miller, the executive chairman, saying

listen, rates went up. what do you think happens? we don't make as much money. that was terrific. and i'm against this, i'm going to say that darden was good. darden, big restaurant chain, setting the restaurants up not everything was bad last night. >> paycheck, affirm. >> that's a positive i'm going to call it mixed, not all bad. mixed. but very visible lennar is a big home builder in the $400,000 range that was a bad miss. who knew that rates were going to go up when the fed cut? >> somebody knew >> someone had it? >> they had it >> somebody out there got it right. >> anyway, today is a big reset. >> elon musk knew. >> carmax was good so i don't want to, you know, dwell on the negative. you can be mr. in between. >> i always am >> also, revised gdp, 3.1 from

2.8. >> the oscillators, minus 7.8, deepest of the year. these are things we are getting a very mixed picture, not all negative, which is why we're not all down this morning. >> we'll talk about a club meeting later on today >> i'm going to go over every single stock some of the stocks we own i don't like >> vocal rest. >> yeah, vocal rest is important. i learned that i used to say 8,000 words a day. >> we're aware when you lose your voice every so often still amazed by this you almost look like you're part of star fleet. >> i thought it was from nathan detroit. >> we will get cramer's mad dash and countden to the opening bell don't go anywhere. (♪♪) (♪♪) everyone has goals and dreams.

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dash of course, eight minutes before we get started with trading. we're going to come back to cvs. talking about it a lot of late, in part because health insured owns aetna pbr is getting hurt, any number

of reasons big board changes took place only a few weeks ago, jim. it has been the health care area that has been the most dangerous for investors, not the retail part, and now there's something else >> i want to add to the nger this justice department suit was just filed it was about opiates we thought they settled those cases. the justice department, one of the last things the justice department does, really going after them for opiate, to reduce its labor costs, cvs set staffing levels so low, it was impossible for pharmacists to comply with their legal obligations, meaning the s were not -- they didn't gate this they allowed opiates to be sold. they bore unresolved red flags and they didn't matter pharmacists describe working at cvs as a soul crushing experience impossible to meet the company's expectations what i'm saying is that we all know that you can't get -- it's all lock and key at cvs in the

front of the store in the back, the pharmacists just didn't have a chance to comply and stop opiates. and i have to tell you, david, this is one of those, this is not going to go away they're saying it really contributed to the opioid crisis vertex's drug didn't look like it did much better than opiates. that stock is down cvs is going to be challenged at every part of the business i don't like the suit for the justice department i don't like it because file, first of all, in rhode island where cvs is, but there is a chance, david, they are going to be front and center again with opiate >> yet another risk conceivably for investors to try to digest as they continue to try to, of course, under new management, turn around the health insurance business in terms of anniversarying any of the bad decisions that were made >> there's people buzzing, is it the next walgreens amazon was same day, hurts the

front of the store maybe existential. by the way, i like these guys. they're really trying to turn it, but there's a lot of damage. this justice department suit is part of it >> okay. we got an opening bell just a few minutes away and later today, jim's investing club is going to hold it monthly meeting at noon eastern. if you want to join the club, scan the qr code on the screen or go to cnbc.com/monthlymeeting. we're back right after this. 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...

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new fed chief jay powell this afternoon people gault more baffled because he seemed to get caught having to fulfill a prediction of the need for a rate cut, and that need was no longer self-evident the data didn't back it up we would have been much better off if they had a taken a wait and see approach before the meeting. this time, they telegraphed the wrong thing. >> it was interesting, that's jim last night on mad.

three nonvoters also would have voted not to cut >> and very cogent questions at the pres conference about whether when you study it, after his statement, did they really need a cut, by their own admission. i think it confused people it confused people because they didn't cut rates and gave exactly what i would call the verbiage for not cutting rates this is the same problem i keep seeing, which is if they had not set us up, not told certain people in the media, whatever, that we need a cut, and then they kind ofgretted it, and they regretted it because business is so strong. gdp, inflation is a little higher so they got -- if they had leaked ahead, they leaked the wrong message and got trapped. jay got trapped. >> you don't think he did a particularly good job in the press conference in terms of articulating the current stance. >> i don't like to criticism him. he's working really hard, but yeah, i don't think.

he was off his game. i feel awful because he's so good so good. i think he knows he was off his game >> it's a tough game, trying to monitor all of the conflicting signals in this economy. let's get the opening bell on this thursday at the cnbc realtime exchange. corporate financial. at the nasdaq, recent ipo ringing the bell a processing company in china. interesting numbers out of the nyoc this morning. 7 of 10 biggest ipos of the year here 9 of the 10 best performing ipos here $400 billion in market cap will be their new listings and transfers. got something done >> is it so bad to be public when you hear that >> you know, it depends who you talk to. i mean, i'll come back to the data brix raise, where deirdre bosa reported on it, $10

billion. it's stunning. larger than, you know, it was larger than uber when it went public here. and it goes to the point that many of these companies that are being relied upon to really bring a renaissance in the ipo market may not be available for some time. they don't need to be when they can raise that kind of sum privately. that said, there is still an expectation you'll see more of the type of the one we had last week, service -- >> titan >> service titan a real company, obviously. i think we have got one of these things right now, i want to talk about, where i do want to mention, you mentioned palantir. palantir is probably the stock that bounces the quickest. and it does bounce the quickest in part because of a piece called the defense re-formation. came out in october, i urge everyone to read it.

it is so brilliant about what's wrong with the department that runs the defense department and how they can cut out costs i will tell you, this is the team that i think will go with musk >> you wrote about it pretty early this morning they do extend this army contract, which is like a $600 million contract >> that's a trojan horse they're basically saying, look, we're done with the idea there's just these companies that are going to get their way cost plus is really bad. and they talk about how basically there is like, like the five families. these companies that control it. they have to be blown out entirely because they cost too much david, i know there is hype here and i know that you know alex karp the company is bigger than alex, and shan car, i think he's amazing. they're in they understand the procurement process. i salute them and i back them. >> defense spending in particular, and how it's being

spent, and the new weapons systems potentially or at least moving us into the 21st century in a real way. is going to be a very important component of the incoming pentagon >> it will be musk's manifesto it's really fabulous >> also some reports this morning about china's military build-up fighter jets, more nukes the argument in some press this morning is they're in a stance for a confrontation one day. >> right well, i think they have done nothing but build up there was this great moment in general mattis' book where the chinese meet with obama and agree to everything and it's terrific a day later, they violate everything with the south china sea i think we have been taken advantage of i'm going to mention a name, a hot button, but go ahead i'm talking about the one guy who really understands it. navarro. >> oh, god

>> although he did think -- he thought the bills were going to do better last week. >> that's a romance -- >> but they're back. bills were banged up he was not as positive about the bills as i am. >> you love that navarro >> navarro was the greatest teacher at harvard when i was there. >> he was a very young man then. >> really young. >> he went to my alma mater. >> why don't you talk about him more when you do the things you do for tufts >> why don't i talk about him? i have been involved i haven't seen him involved. >> i'll get him involved during the break >> how about paychecks >> carl, we have something on the debt ceiling >> yes, garrett haake, our colleague at nbc news, managed to get the president-elect on the phone. talking about the debt limit and mr. trump said the democrats have said they want to get rid of it. if they want to get rid of it, i

would lead the charge. calls it a meaningless concept no one should want to know what happens if you breach it quote, it doesn't mean anything except psychologically would have some implications, jim, for certainly, i don't know, confidence about the fiscal responsibility or not >> majority of people in the country agree with him i think we all feel it's a farce. they closed grand canyon okay they make people feel bad, and they finally come to some -- we do it constantly, but look, they're breaking the orthodoxy they're breaking the orthodoxy breaking the orthodoxy in vaccines perhaps >> a lot of different ways again, we're still a month out from this administration even taking office. >> they have been in charge now for like six weeks >> they do seem to be filling the vacuum, certainly. you could argue that the current president has been less than assertive. >> very polite

>> a big piece this morning, i think the journal has it looking at how the administration has worked around what they call an increasingly feeble potus >> right these are discouraging stories i remember when i interviewed the president-elect, he didn't want to take a shot. he just didn't want to do it i tried to goad him. >> which is rare for him >> maybe -- it is rare maybe it's a ifferent kind of -- lennar is only down five >> the s&p up 1% same with the nasdaq we mentioned lamb weston it's an interesting story. first of all, it's like, how could you ever go wrong making french fries >> karen cramer, my former wife, went wrong at mcdonald's you get the crisscross, the way they make them a little crisscross. >> okay. yeah >> no, it's a basket, in a darn basket, the fries. you can go wrong making fries. >> i see what you mean

you can burn yourself. >> i respect her because she worked at mcdonald's, not just one day. >> these are the frozen -- i mean, this stock, the company has not been performing well for some time. it has an activist in its shares they got it in august and september, roughly 5% of the company's share price, excuse me, of the company's outstanding at a share price not that much, actually, not that much above where we currently are they wanted a new ceo. and they got one, but they're not happy about that because the company did appoint its current chief operating officer, michael smith, as its president and ceo. >> what do they think the financial results are? what are the financial results of this man coming in? >> what are the financial results of what? >> of this change with the coo coming in? >> nothing >> no, disastrous. >> here, we have part of the statement from jana. because it is interesting.

again, they got what they were after in the sense they were calling for a change in management, but this is not what they were looking for. disastrous financial results, decision to scopits ceo. consistent in its strategic debacles is just the latest stick in the eye enough is enough it requires significant board change or in its absence should be sold. >> like firing - >> you follow this company for years. >> look, this company was doing better than its spin-off, the company it spun off of, conagra, and i always felt, wait a minute, maybe they should have kept french fries. in the end, this is a company that is worth $9 billion, versus $12 billion, conagra there was a way to make this company better you don't pick the guy who is part of the regime >> part of the potential problem. >> you know what you do? you go to jana and say hey, you

know what? get us a guy >> got any ideas >> get us a guy. you know who can do better than this guy maybe mr. potato head. >> a very effective leader >> he has game okay >> don't screw with mr. tato head you have seen the toy story. >> who does the voice of the potato i can't remember >> long standing knowledge of the potato business. >> speaking of management shifts, dollar tree, third ceo in two years we're going to get nike tonight. elliott hill, his sort of debut. stock has a rough history of fading on earnings reaction. >> wall street journal story today about the significant discounting nike has been doing to clear out inventory >> you know, people always want to get the jump on that thing. i don't think nike is anywhere near where it has to be yet. jordans are not selling. people don't want to talk about that if we can go back to dollar tree, i switched

i don't know if anyone follows me on x. i switched to dollar general >> why did you do that, jim? >> i think they have more selection and lower prices now there's too many things at dollar tree that are not a dollar at dollar gen, you can't possibly have these milk duds for a dollar listen, we don't cheat our candy when we say it's a dollar is a dollar i have to tell you, the dollar general, spotless. you can eat off the floor, not that you want to do that >> no, i prefer not to we have a big read -- >> how is your dollar general? >> i have not been to a dollar general. >> there's like 10,000 he's never been. >> no. we have a big rebound in the banks after, of course, very significant decline yesterday in the last hour or so of trading >> horrible. >> that was nasty. higher rates, obviously, a concern perhaps. we do have a significant move back the other way let's call it roughly 2% or so you can see some of the biggest financial institutions in our country.

>> look at that. people love citi i look at that tangible book, and i still don't get it maybe you can help me out. >> no, i can't >> how about salesforce bouncing back got shelled yesterday. holy cow even though matthew mcconaughey is dressed poorly in the first ad let's go to the next ad, please. >> speaking of the banks, goldman interestingly does maintain its call for three cuts next year. they think the core pce come february is going to be maybe 2.5. that will make the case for a march cut. >> why do they want to court that what's the point of courting that i mean, not that i'll call solomon after this and say why did you do that? no, i will call solomon. why did they do that >> who are you calling about what >> goldman is keeping its threeerate cut thing why? >> jan hatzius

i wouldn't call david about that >> call jan? do you have jan coming on? you think coston agreed with him? >> i don't know. i don't know what's going on in the book room at goldman >> they select - >> my guess is they don't speak often. one is doing the economy, the other is doing markets >> i want to know that, i want to know how slim jims are doing, i want to know about meat sticks, about the fact conagra has a line of glp-1 foods and they think glp-1 is a tailwind >> getting ready for your interview this evening >> i am getting ready. how about the fact invid yauz was up 3.5% at 4:00 a.m. and there it is. >> it was down five straight and is managing about a 2% increase today. >> when i talk about it at the club meeting, what i intend to say is look, it's a great long term stock don't buy these up moves

yesterday, people were buying it up three i hate these up moves. they're free fire zones. why would you do that? >> you mentioned glp-1s, the fda does have this deckleratory order saying the shortage is over i think hims was down double digits a few minutes ago >> hims and hers >> the compounds, yeah >> if they say that's off -- >> they no longer make it. >> no one knows why. you know, microstrategy, in other words, stay away >> you mentioned during the mad dash, cbs. we should point out this continued decline in health insures. humana, anthem, unh, cigna >> cvs, jim mentioned the lawsuit around opioids and the fact that they were not properly, i guess, supervising in terms of the pharmacy at cvs. but beyond that, the pressure

continues after that horrific murder of unh's ceo a couple weeks ago. >> i think if i were the people at mckesson, ted cora, when the president-elect decides that he is going to take a shot at you, as we know from his first time around, it's not one off there's multiple shots, multiple attempts to say listen, you guys are friction i would not buy these stocks i would not buy mckesson i think that, david, as much as people want to look at the reverse head and shoulders and buy it, i think you're in the cross hairs. president-elect trump, and then musk i me, these guys are powerful one-two combination. you know >> yes, they are >> this is one of those, when i look at mckesson, i think, there goes frazier >> you know frazier? >> yes, i do i know all the fraziers.

i still love walt frazier. >> i remember when liston was down it was owned by a syndicate of philadelphia's then cassius clay. this is sonny liston >> in maine, wasn't it wasn't that fight in maine i believe it was in lewinston, maine. don't know how i remember that >> he gave a commencement speech >> who gave it >> at my graduation. it may have been the best i was at >> nordstrom shares are up about 3.8% >> i knew u would bring that up >> there's been a leverage spot in process for some time it was back earlier in the year. that the special committee of nordstrom said it was in receipt of a going private transaction 23 bucks a share then. that was september 4th i can confirm as well there is an expectation they're going to announce a deal prior to the end

of this year but the key thing here is the price. it was $23 obviously, the market expects it's going to be higher than that they have a partner in it. this company you know. >> i happen to like liverpool very much. they have outfitted our houses with liverpool >> in mexico and the family obviously would roll in. the second time perhaps will be the charm. remember, they tried this previously financing was always something of an issue. we'll have to wait and see i don't have -- i would like to get more on price because that's obviously got to be a key component here in terms of what special committee agrees - >> why don't they put that on brick and mortar >> they don't have to put that much debt on it. good question. >> i had the best liverpool in the world, if you went with me you would love it. >> really? >> yeah, kind of like macy's meets -- liverpool >> extraordinary >> an interesting construction >> so beautiful, my liverpool,

you could eat off the floor again. i'm eating off the floor in a lot of places. not darden i'm going to eat at the table at darden because that number was good we have a mixed picture. >> that's an all-time high at darden this was a $26 stock >> look at darden up 25. we should talk about that. they delivered the numbers people were short it, and by the way, can i just say, david, when you go with me to my texas roadhouse, when you get the cinnamon rolls, you'll spend $11.95 and more. stock up >> love cinnamon rolls >> restaurant day. let's stop being so negative >> there's good action in restaurants. we talked about brinker and a few others >> brinker has the cheapest and best margies better than our christmas party. thank you, david, for the christmas party. >> you're welcome. >> watch bonds ten-year hanging out above 4.5 claims 220, the biggest weekly drop since june of '23

and of course, although it's backward looking, consumption revived up to 3.7. the best number since q1 of '23.

trying to repair some of the damage from yesterday. dow is up .6%. s&p up a little more percentage wise, but still a bit of a trip between here and 6k, which we did lose coming up on money movers we're going to head to goldman's trader floor but we will get stock trading with this first, after this.

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that's up to $2,000 in value. only on verizon. z's bakery is looking to add a pizza oven, arissa's hair salon wants to expand their space, and steve's t-shirt shop wants to bring on more help. with the comcast business 5-year price lock guarantee,

they can think more about possibilities for their business and not the cost of their internet. it's five years of gig-speeds and advanced security. all from the company with 99.9% network reliability. get the 5-year price lock guarantee, now back for a limited time. powering five years of savings. powering possibilities™. let's get to jim and stop trading. >> shocking news about vertex. a lot of people were hoping their anti-opiate pain killer would come through that's just a shady business >> you were hoping it would come through. you talked a lot about this. >> we have to get people off opioids. if you remember, cvs, your hope is this nonaddictive, i think they're going to try to do

another trial. i felt very -- i felt awful about this this was the hope. give people we have to watch but i didn't like the prospects. >> so from vertex to paychecks >> paychecks can be good that's probably like, you're looking at the fed saying wow, where is the pain here we don't see pain. we have fedex. i think they're doing a fantastic job, able to get good numbers, maybe a little reorganization and conagra, you get a 5% yield. they had growth, but they were back half is not as good because of inflation >> you have raj tonight. spinning off freight is the key question >> man, you're good. >> thank you >> you know, my partner, he just nails it every day >> so we're going to know. that's going to be important that's embedded in the stock price, the xpectation is

embedded or not? >> almost like an agent force interview. >> if they decide not to, would the stock go down? >> i think all that really matters is i think their competitive position versus u.p.s. and how they're doing per package. look, i think raj is amazing >> also the prospect of privatizing the postal service bezos at mar-a-lago last night >> look, i was with fred smith this weekend, the founder of it. at the eagles game we have high hopes what can i tell you? this is a man who has taken a company that fred built and taken it another step higher i think it's fantastic i sure hope they beat. i don't know if they'll beat >> before that, you have the club meeting at noon >> at noon i'm going to go over every single stock i'm not happy with some of these stocks and it's not -- there's some not great moments coming up in that speech >> meaning names you think - >> meaning there are really nice

people >> yikes jim, look forward to it. >> david, look, do you ever see this word? it's called cashmere so i mean, i see your apartment and i raise you this cashmere. >> pulled that one out of the 1990s closet, didn't you >> congratulations it i got a horse right here. s name is paul revere. >> "mad money," 6:00 p.m. eastern time dow managing a 260-point rebound. don't go anywhere.

good thursday morning and welcome to squawk on the street . we are live at the new york stock exchange. sarah is off and carl is on the move for the next hour with a big interview, going to west street, to goldman sachs' trading floor and you can see the cohead of global banking

and markets will be his guest. speaking of markets, let's look at ours after the significant selloff yesterday, we are rebounding but already off the highs, watch the 10 year treasury yield at 4.56. >> macro is the big story but some interesting idiosyncratic stocks to watch, three big movers we are watching, shares of micron common with a weaker than expected guidance for the second quarter, more on the reaction following the selloff yesterday. currently, shares down more than 16%. shares of darden restaurants rallying, the owner of olive garden beating earnings expectations and raising the full-year outlook after adding chuy's to its portfolio with higher restaurant sales at major chains with shares of 14%. shares of accenture jumping, up 6.6% thanks to strong demand for

gen ai. the ceo julie suite will join us with more details for the outlook for the next year. >> let's first get to economic data, rick santelli has it for us. >> leading economic indicators for november came in positive come up 3/10 of 1%, they have had 32 consecutive months without a positive number. we have one zero this year but the last positive integer was in february of 2022, equal to the current 3/10. to find a bigger number, you go back to december of 2021. on that, we see interest rates, particularly the 10 year, making new high yields on the session. should they close,

highest yield close going back to the end of may and the yield curve steepening to the tune of 25 basis points currently. also, the steepest since the end of may, seven months. november existing home sales, and for that we go to diana. >> existing home sales in november rose 4.8% to a seasonally adjusted annualized rate of 4.15 million units with sales up 6.1% year-over-year, the street was looking for a 2.5% gain in october and this count is based on closing so contracts likely signed in september and october, mortgage rates have fallen to an 18 month low in september but shot higher in october. the supply of homes for sale, 1.33 million units come up 17.7% in november of last year and that the current pace still just a 3.8 month supply for six months is considered balanced between buyer and seller that pressured

prices and the median price in november was $406,100, up year over-year and up eight -- 18% of sales were above list price. 30% of november sales up from 27% the month before, slightly lower than a year ago and cash is king at 25% of sales and investors pulled back, just 13% of sales, down from 18% in november of last year. mortgage rates shot up yesterday after the fed announcement of 21 basis points to well over 7%. the bond yields going up again today, david, guess where they are going? >> yes, higher if i had to guess. diana, thank you. let's get back to the stocks aiming to bounce back after the significant late day selloff after the fed move. and the all- important press conference and comments from the fed chair powell.

mike santoli, let's get your take, we were up over 1% above the s&p and the nasdaq when we began trading >> a reflex bounce, the market was oversold finish yesterday with some acceleration over the afternoon. we did finish on the lows of the day it seemed systematic when we reprice the fed path and bond yields were doing what they were doing s&p 500, it is below the 50 day average come on a tactical basis, a little bit of a hurdle, above where we are, now we are below, 59 .24. at the november lows and the october highs in the s&p. we are resetting on this plateau . we are figuring out within the market, what is discounted, perhaps, a slightly murky path to the fed, and the economy. look at the nasdaq 100 relative to the equal weight. a handful

of large stocks with some really low quality smaller speculative stuff ripping higher while the average stock is languishing. the divergence over the last few weeks, yesterday 2.5% drop in the nasdaq 100 and you are bouncing today. there was a sense of unbalanced and brittle market that was hit by what the fed had to say yesterday. the economic data this morning, we heard some of it and weekly jobless claims and revision in gdp, all good and the market to make its peace with less fed easing next year if it comes in the context of an economy that has some momentum. we have to test that every week, every month, the meetings will be filled with more suspense than we thought before yesterday. j powell was speaking on behalf of a conflicted committee that is emerging in his expectations for what it can do given where inflation is. the market pick that up.

the market was pricing in 95% chance of a quarter-point cut going to be and the first thing powell said was it was a close call. that tells you we are at this moment in the policy-setting cycle, when you do not know what is coming next. a wide range of outcomes and not all negative. >> we do not know what the impact from terrace -- tariffs, you don't know the impacts at this point. >> absolutely right, clear some members of the committee are trying to filter that stuff and that accounts for some of the divergent views. >> there was a note that they said there was an options market linked to the secured overnight financing roles, for one large block trade yesterday, after the meeting, benefiting from the start of another hiking cycle. there are bets in the market that, not only are we paring back to the expected cuts, they

could potentially be higher. >> the market does overshoot when all of a sudden it is a change of story. when it comes to things like housing and banks, in terms of this idea that we were going to get more rate relief and we would have this window were all of a sudden you have smaller business loans start to flow and homebuilding recover. now, that has challenged. >> and the banks, they sank decidedly late in the session, they are up today but higher rates have an impact. >> goes back more capital market sensitive took the biggest hits and you saw that in the alternatives with a greater magnitude of the clients. even the smaller cap regional banks. part of that indicates that this capital markets revival which is generated so much excitement since the election and has been a key driver was another data point that maybe, without that rate cutting relief they were expecting, that can change the calculus. i do not know if that is true.

there are more important factors in place with regard to capital markets. >> the big rule yesterday, whatever was up the most and people were most crowded and comfortable in got hit the hardest, that is the capital markets, people were so certain of the deals. >> we would see more dealmaking. if you are in private credit and rates are higher and you can offer double-digit returns, which are quite attractive. i think apollo, one of the giants in private credit, they are happy. perhaps, seeing play out what they have been talking about, no need for cuts. >> but, some pretty steep declines yesterday at 5% and 6% which could be indicative of concerts around credit quality for some, and he longer the rates they hire, what does that mean? let's talk more about whether the year-end rally is a factor with why do you think the

market was so surprised by the events yesterday? >> i think about what is interesting about treasuries, they are having good competition for risky assets. the fed funds should be at about 4%, it is the right real rate to maintain inflation is sticky. the yield curve should be positively sloped. 1% or so. a 10 year should be closer to 5% if not over. it is putting a lot of pressure on risky assets where evaluations are stretched. >> your view is gdp accelerates and the second half of next year with that sticky inflation. you think that contributes to a correction of 10% to 50% over next year? why is that, what is the base case for that hypothesis? >> the fed is walking down a ledge getting progressively narrower, there is no lasting inflation progress without the

cooling of labor. we know that labor is the ultimate play and we will see slower wage growth into 2025. inflation is sticky and wages are slowing. what happens is real wages, wages after inflation, are getting less. consumers having gorge themselves are going to pull back and that will contribute, along with housing, nonresidential construction, net exports and the lag effect of the dollar, and government disarray, we will not -- overall , gdp would be cut in half in a year-over-year basis. that is a midcycle slowdown we had one in 2015 and one in 2012, we had one in the 2000's, a normal thing but does cause a

correction. >> barry, how are you building in whatever probabilities for policy moves along the way that could move the needle or not on gdp and earnings growth? >> we said that the fed would pause, that was our call for the 2025 outlook and they would stop at 4.0 now, the pricing is about 4.0 in 2025 on short-term rates. if the yield curve is positive, if we do not have such a depressed, repressed term premium in the ten-year, we would be looking at 5. it is competition for risky assets. i do not use the federal, but every 100 basis points in the ten-year is giving you, right now, 1000 points in the s&p because one divided by the yield is a proxy for the multiple. you are in a world where you have the very best of both worlds, good economic growth, the fed is pausing, but long

term yields are low which keeps multiples high. >> thank you so much for breaking it down for us, barry . >> thank you. >> united health ceo murder suspect has waived his extradition in a pennsylvania court, you are seeing video outside court which means he could come to new york city as soon as today to face charges for the murder of the united healthcare ceo. >> as we go to break, here is a roadmap, donald trump calling for abolishing the debt ceiling after he and elon musk blasted the bipartisan spending bill and we will go to washington for the latest. the shares of micron falling , we looked at the health of semis. the accenture ceo joins us,

the stock is up after the latest results and guidance from the company. do not go anywhere believe corpoe types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah.

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powering five years of savings. powering possibilities™. chaos and drama in washington, d.c. this morning, a government shutdown looks increasingly likely after elon musk and the president-elect slammed the bipartisan spending bill. donald trump calling for abolishing the debt ceiling.

emily wilkins is in washington with the latest. a lot going on, emily. >> reporter: a lot of moving parts, even in the last couple of minutes with republicans still scrambling to come up with a stopgap bill to avoid a government shutdown which is less than 48 hours away. this is after elon musk and donald trump blew up the bipartisan deal yesterday. elon musk has called for less government spending but, in a post donald trump said that areas hit by hurricanes and relief for farmers is needed in this bill and that was about $110 billion in the initial bipartisan deal. to further complicate matters, donald trump is demanding that the debt limit be added into this package. he told nbc moments ago that he wants to eliminate the debt ceiling. we are also hearing lawmakers are considering a potential two year extension. we will have to see if that plan fares with republican lawmakers. a number were hoping

to use this debate over the debt limit to reduce government spending, reduce the debt, and in the past, negotiating the debt limit has taken months with lawmakers were not expecting the deal to be until later this summer and having to figure out the debt limit. plus, further complicating this, whatever republicans do decide to do, they will need democratic support of the democrats still control the senate. still out to chuck schumer to put whatever bill they passed on the floor. if the government does shutdown on the end of day friday, it will be millions of federal workers who go without pay. that could impact tsa, air traffic control, causing issues for holiday travel if it goes on for weeks as some lawmakers have suggested, to continue until donald trump is sworn in, it could impact the economy and millions of americans. >> fascinating as you chase around what is coming out of the donald trump-elon musk camp with their camp, what is the

white house saying? not something joe biden would be signing if it were to pass, are they happy to let this chaos play out? >> reporter: honestly, the white house is saying this as being owned by the republicans who put forward a plan and blew it up, so they are taking a step back and waiting for speaker mike johnson to make the next move. at the same point, we saw a statement from democratic leader in the house, hakeem jeffries, he had a meeting with democrats and the theme of the meeting was unity. everyone has to stick together he put out a statement that sounds like he is skeptical about adding the entire debt ceiling debate into this piece of legislation. >> emily, thank you. we will be hearing more rom emily wilkins as these events continue. united healthcare ceo murder suspect luigi mangione left a courthouse in pennsylvania and this was

after waiting extradition. we have video, potentially on his way to new york city, where he conceivably will face trial for the murder a couple weeks ago outside the hilton hotel in manhattan. next, shares of accenture rallying on the back of the latest earnings and outlook, the ceo julie sweet jos usin to discuss the demand she is seeing for ai services going into next year . we are back after this break today, we're nearly 30,000 u.s. employees strong. in more than 60 u.s. based facilities, across 16 states, we couldn't be more proud to play our part in supporting americans who work the land and build a better tomorrow. ♪♪ nothing runs like a deere™.

shares of accenture are up as much as 7% after the company beat expectations and boosted the fiscal year revenue outlook saying new generative ai bookings hit $1.2 billion. ceo julie sweet joins us . good to have you. strong revenue growth, above that many analysts expected, despite the fact that some say the demand environment is more or less the same, so, how do you describe this outperformance, so to speak,

and can it be continued? >> thank you. we are really excited about the quarter. we delivered on our strategy to help clients reinvent and to take the lead in jan ai -- gen ai, we said that strategy would lead to us returning to strong growth in our fiscal year and this is our first quarter and we beat revenue guidance by $240 million with another milestone quarter in genai with $1.2 billion in bookings and $500 million in revenue, this is about executing on our strategy because the market demand, overall environment is not getting better, this is about execution. >> specific to execution and/or strategy, tell our audience what you are getting right and how much of it now is focused on the incremental revenue gains you can make from offered him genai products and advice?

>> think about what companies are looking for. i did a world tour in the last few months, i have been in europe and southeast asia, australia, u.s., and the thieves are similar they are about driving cost efficiency and growth. at the core, they recognize that they have to have a much stronger technology-based. we call that the digital core. a big driver of growth is helping our clients modernize the cloud, building the data foundation and genai is the catalyst . we have clients on one side not part in the cloud, they have not done that much with data and working with us to accelerate in order to be able to use the value of genai . on the other hand mother clients are already have a strong digital core, they have their data, and using genai to deliver on the value of

genai we are working with a global tire manufacturer, part of their business, quality of the tires, it used to take weeks if they had a defect in the tire to figure out ow to fix it, now, it takes minutes. what people may not know, the leaders are not just finding use cases in value, but they are changing the way they operate. with that particular company, we are upscaling their people at hundreds of factories because they want an everyday ai first culture. >> in listening to you discuss this, one of our larger clients is the federal government, as much as 70% of north american revenue perhaps, we have been reporting a lot this morning on what is going on with the budget, department of government efficiency, are you going to be a beneficiary of that effort, or is it a concern

in terms of the overall spend that may go down and you may be a victim of it? >> we are really excited and we believe we will be a beneficiary i am super proud of our federal business, about 8% of our revenue. what we do is help the federal government become more secure and improve their citizen services, and drive efficiencies through the modernization, through data and we are helping the air force, for example, modernize their technology to be in the cloud and drive efficiencies. we are working with another federal agent helping to secure critical infrastructure. there is no one better in the world, we believe, to help the federal government accelerate across these identities and, what we uniquely bring, is private sector solutions that can help the government go even faster. we are really excited about the agenda, about working

with the administration, and working with all the great federal employees who are trying to make his country even better by making it secur , having the best citizen services, and doing so at the correct efficiency. >> i get your point on the efficiency and modernization date and the cloud, are you worried that there may be pushback in the current environment on the rates you are able to charge the federal government given there is so much more attention in this new administration, potentially, on cutting costs and so forth? >> we really focus on what is the nature of what we do. we work on mission-critical programs. our work is essential to the federal government. we charge a fair price. the focus is how do we help the government find the cost savings while making it more secure and improving our competitiveness?

we are doing a lot, for example, in ai with the federal government and we believe that we also bring some unique insights into ai and talent upscaling. as you may know, we have offered -- we have opened up a new line of business to help upscale both countries and companies because we think it is so vital to the competitiveness of the countries we operate in. we are really excited about this agenda. >> finally, julie, your company's name has come up in terms of being a new client for salesforce, their agentforce, i am curious is that the case, are you using it or offering it to clients? any inside in terms of how you view that product? >> we are using agentforce.

we want to be the best credential across all of our partners. accenture is leading in deploying ai, including agents and her own company and i will tell you that ajanta architecture is the latest development in genai and exactly why accenture is a great partner, because come all of our clients need to understand it and to really use the architecture of our ecosystem partners, you have to not just deploy it with its new technology, which we are great at, but rewire your company. we are doing it to ourselves and we are helping our clients do it . super excited about the entire ecosystem in terms of where we are going with the architecture and we have partnerships across the base and we are doing it at accenture. >> to be continued. julie, thank you as always. check out the biggest

laggards on the s&p, micron down 18%, we will get into that and weaker than expected second quarter guidance after a break.

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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. a georgia appeals court disqualified fulton county district attorney willis from overseeing the state criminal election interference case of president-elect donald trump but the court left the indictment against the defendants standing and they are accused of crimes related to efforts to overturn the loss in the 2020 election. in a freewheeling 4.5 hour

press conference, the russian president vladimir putin commented on topics from the pardon of joe biden's son, the war in ukraine, and a missing u.s. journalist, vladimir putin said he would raise the case with the syrian president whom he said he has not met with yet since he fled to russia as rebels took over syria. u.s. life expectancy rebounded to 78.4 years in 2023, reaching the highest level since the beginning of the covid pandemic . according to the cdc, that is almost a full year longer than in 2022 and researchers say the jump is because covid cases have dropped so dramatically. a nice bit of good news, thank you. we have a big earnings mover, micron, shares down 80% after

week the second quarter issue guidance, -- >> the overarching narrative for most analysts, micron is making strides , yes, in building high-bandwidth memory products that feed into artificial intelligence but not enough to offset the weakness in pcs and mobile which make up a big chunk of volume. goldman sachs says it had the wrong call in micron over the past six months, lowering the estimates but maintaining is by rating on the expectation that high-bandwidth memory will gain more market share over time . bank of america analysts less confident, downgrading the stock to neutral, lowering the target and he sees continued pressure on pcs and smart phones impacting the overall growth margin picture for micron. the stock is now on pace for its biggest one-day drop since 2020 and down about 40% of its recent high hit back in june

analysts say the stock's recent pullback is not justified and they think there is a positive outlook for memory over the next 12 to 18 months and he latest product from micron has the potential to generate growth margins next year and they are keeping an outperform rating analysts overall agreed that one of the challenges the ceo faces going forward is increasing supply of hbms, he said last night that high- bandwidth memory are sold out for calendar year 2025. mike? yes, micron shares trying to swim against a rough market type, pulling back off the highs come up only 2/10 of 1%. after the break, richard fisher etll weigh in on the fed meing that sparked the massive selloff yesterday. we will be right back. stay with us

stocks aiming to rebound

after the massive selloff yesterday following the fed revised rate outlook. steve joins us with more. >> reporter: steve? steve? >> that is you. >> are equities and bonds selling it for tougher times without the fed at the back? the fed rate cut raised 4.5 range, down a quarter, forecasting only two cuts next year, not three, one dissent, three others wanted no rate at raising inflation outlook for 2024, 2025, 2026 as well. >> from this point forward, it is appropriate to move cautiously and look for progress on inflation. >> reporter: the federal reserve also talking about tariffs quite a bit and if you look at what isi evercore said,

the federal reserve, they decided to pad its forecast for my donald trump, pulling forward much of what would've otherwise been a hawkish update in march. futures markets do not think the fed will cut twice, january probably just 9%, march approaching 50%, 49% may is when the next rate cut is built in and a second cut in december now just 42%, below 41%, below the 50% line. the situation could take with better inflation number or weaker unemployment data. curious as to what donald trump will do with tariffs, do not miss our interview with the new york fed president john williams tomorrow at 8:30 a.m., he is not just a fed official but a worldwide recognized expert on the neutral rate.

mike? >> we need all the insight we can get. thank you let's stick with the fed is doing as is the former dallas fed president, richard fisher, great to have you on. chair powell yesterday said, the economy is still in good shape but the labor market is actually cooler than it was in 2019. he said inflation has come down a lot and going in the right direction but less complex on the committee that it will make its way down to target. a dissident message, the market is confused, how does it shake out to you? >> you have to look at the circumstances at the time and adjust accordingly. the dot plot, survey of economic projections, a very precise way for the markets to be so dependent, and i gave a speech in new orleans at the fed

in may of 2014, i will read you one sentence from the speech, i want to caution you, the audience, i guess becoming overly preoccupied with the affluence sep, and i called it --" in that speech, i think chairman powell has said this over and over again, these are not locked in, these are the best guest at the time -- best guess at the time, the market is overly preoccupied. they are adjusting to current circumstances. the other thing i remember well, ben bernardi says not what we do but what we say, the projected to the best guest, the dot plot, revising what they thought was the best guest in

september -- best guess in september. it is an honest way to protect yourself and the chairman gives that talk to give a little guidance, but imprecise tool. we develop the dot plot because try to provide for guidance. it is best guess, best for the market to keep that in mind. >> i take what you say, and chair powell has tried to not emphasize the dot plot with imprecise intention of what is going to happen, but what it does reflect, inevitable perhaps as the race get towards neutral, and the economy evolves , is that there is a pretty wide spread of expectations of what the neutral rate is and how fast the fed may be able to get there, and weather inflation is in hand or not. >> again, monetary policy is

not mathematically precise and i marvel at the analysts who think it is. it is 19 people led by the chairman, just doing their level best to provide monetary policy that does not overstimulated or under stimulate the economy or create inflation or disinflation, or deflation. these are human beings. they are not models, they are not computers. you have 19 wise owls, not hawks or doves, but there is no precision, it is judgment. all the models in the world, you know what the fed future markets are saying, et cetera, but, you sit at the table for two days, you are providing your best judgment and no more than that. >> richard, it is david. when

it comes to trying to anticipate the inflationary impact of potential tariffs or deportation, how do those wise owls think about it, or should they? >> they turn their heads like owls and try to understand what is likely to come. i worked for bill clinton and we were believers in free markets and comparative advantage. but we were taken advantage of over time, you have to be careful, you don't know which countries will levy tariffs, china is responding, we are seeing some other countries europeans responding and what they anticipate. but, if someone violates the rules of trade, which china has done lately, you have to consider levying these kind of tariffs as a penalty and figuring out what the counterpunch will be. steel, when i was there, the

movie industry, the u.s. producers in maine, we did levy tariffs to get a reaction from canada. in other cases, to, whether republican or democratic president, to deal with the powerful lobby. that is the way the system works. but, my bottom line is, any tariff adds to price pressure and squeezes or threatens the margins of company and they have to respond for the price pressure comes from. in the case of steel, it costs more for the taxpayer in terms of cost of product and what we get in return for those tariffs. it has to be levied carefully, i don't like across the board, this president is a negotiator and we have to see how mexico

and canada respond. we have seen a canadian response in terms of the board and how the chinese, a huge trading partner, not as big as mexico or canada anymore or almost the same, how they respond to the europeans used to go after, they went after kentucky bourbon. we got relief on that. this is just beginning and i think powell articulated it well. you modeled different circumstances. we don't know. we will see what the ew administration decides to do. >> dynamic circumstances all around and we will have to adapt. thank you very much. >> thank you for having me. >> why college sports is setting up to be one of the hottest investments in 2025, capital firms rushing to buy intoãaa -- ncaa sports programs

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wall street could be setting his sights on a big new trade in 2025, college sports in conjunction with -- we are at with our inaugural list of

the 75 most valuable college athletic programs number one is ohio state valued at $1.32 billion, followed by the university of texas, texas a&m, michigan, and alabama. joining us is the man behind the list. this is fascinating. i have some questions. >> fire away, ready to go. we look at the top schools that are football bowl eligible, starting with a revenue multiple of four. proteins are six to 10 more risk in college, it has not happened yet, and adjust to the multiple for, how big is the football fan base? how many alumni? how rich are their donors? the big thing we're all talking about, college football fans, nil, name, image, and like us, somebody switched from lsu to michigan because they promised him $10 million at least.

>> it had the presence of larry ellison and his wife, which we did not know, the michigan grad who said, please write them a check. i have a not uninformed source in this area who believes at some point p.e. firms will try to own some or all of a college sports program, will there be an opportunity? >> this has not happened yet. but, i think it will by the end of next year. i don't think they will on majority stakes, they will create a special purpose vehicle, they will put the revenue-generating assets like television, merchandising, licensing, retail and on a minority stake. and maybe after seven to 10 years, sell pieces of it and bring in different partners. >> these are almost all of the top 75 are public universities,

how would the economics work in terms of taxpayer dollars, student tuition, the athletes, and the ownership of p.e.? >> great questions yet to be worked out these schools need a lot of money because of litigation being settled, they have back payments of almost $2.8 billion. they will be paying a revenue sharing program going forward where they will start $20 million per school and over 10 years going over $30 million. to your point, private schools may be the first to do this. some people are trying to form power leagues where you have the best football teams in basketball teams individual schools starting with private i think, but tax issues you have to resolve, these are nonprofits. issues with public schools, land-grant schools and they have restrictions on the state. there are things to be worked out. >> one thing that seems certain, profit motive has come

hard. mike, thank you. check out cnbc.com/sport to see how your school ranks. blackstone is back with another holiday video, bracing the alternatives from last year, but this season they have taken a different approach. >> ♪ you can build, you can build with blackstone. ♪ i really think you are missing out on an alternative sales trade, forty-year legacy started by steve and pete. ♪ build with me a strong portfolio. ♪ ride with us. leave your old investments in the dust.

♪ >> blackstone meets yellowstone, i guess. appealing to middle america may be a play on the ut, a highly valued sports program. >> i think $2500 to get in, appealing to middle america. >> something about paramount, the deals happening in the industry. >> you are really getting deep into this. taylor sheridan signed into the video. s&p -- where are we? bouncing a bit off the low of the session. back after this.

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♪ good thursday morning. welcome to "money movers." i'm carl quintanilla today stocks tried to recover from yesterday's losses as the fed chair spooked some investors with that rate cut outlook

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