that's just not sustainable. but i think what they're doing around a.i. is going to ultimately drive the market cap higher. and when it comes to apple, i think the iphone is going to grow closer to 8% for this coming cycle and expectations are for 3%. that's where soon. folks, that does it for us today. make sure you join us right back here here tomorrow. right now it's time for "squawk on the street." happy new year, everybody. welcome to "squawk on the street." i'm david faber with jim cramer. carl has the morning off. let's give you a look at futures as we get ready to start the trading year, as we say. as you can say, we are looking for a nicely higher open. that's where our road map begins this morning. markets are in rally mode to start the new year of trading. this after stocks did finish what is the best two-year stretch we've seen since the late '90s, even despite a couple of down days there to end the

year. also ahead, wall street awaiting tesla's delivery numbers. they could come out. you never know with tesla. they could come out as soon as today. we'll bring them to you, of course. we're also going to stay on top of developments surrounding the deadly new orleans attack and the explosion of a tesla truck outside the trump hotel in las vegas. let us start with the markets again after what was a very strong year last year. particularly for the s&p. in many ways, jim, so happy to you have you back. good to see you, my friend. happy new year to you. >> happy new year to you. >> equally weighted and s&p itself were significant again. many hedge funds are happy to performance their funds equal weighted, not the s&p index. almost nobody can beat the 24% performance. there it is, 23.3% of the s&p. that does include dividends, by the way. what do you think? what do you think? >> first of all, mag 7, 33.5% of

the s&p at the end. 66.5 the rest. i think a lot of people got the mag 7 wrong. i think it's possible. something i want to talk about tonight. maybe we're going to be in an era where there are $4 and $5 trillion stocks because the numbers keep going up. i like to sometimes think about what goes right versus what goes wrong. and the reinvention that i keep thinking about these companies, it's endless reinvention. so, i just thinking people want to keep them out but i realize they work in an environment where there's no recession. they work in an environment, by the way, that was there was going to be a recession, that looked like the mini banking crisis. when you look at some stocks that led, say, in the s&p, palantir keeps showing up. >> 50%, as i recall. although now we're starting from zero again today. today everything is zero. >> but that's a retail stock people like.

once again, you have this nuclear theme, which is way overdone. >> who would have thought a year ago, though, jim, that vernovo and constellation energy, i spoke about this on thursday with mike santoli -- every year something surprises you. >> remember it was charging stations. let's not forget quantum computing, which is another one, the time may never come. scott, the foremost executive when it comes to nuclear ceo of ge vernova sat right there and told us 2023, 2024 -- >> no, 2030, 2033. >> ten-year gap. no one listened. everybody thinks it will be -- >> small modular reactors. >> there's one in canada. i don't want to encourage people to do these things.

not encourage to do quantum. stick with the facts. >> sticking with the facts means what, then? encouraging people to do what then? >> well, let's look at the fourth -- the fifth best in the s&p. united airlines. now, these historically have been in trades. the airlines typically don't have discipline. they never take out capacity. they did take out capacity. problems with boeing. so, you get a stock that's up very big. and you say to yourself, it's only at nine times earnings. that's what i'm looking at. i like that. you know, look, when you can go find texas pacific land, which is this bankrupt railroad from a long time ago and it has permian oil, and they have a pipe out from permian because there's too many nat gas. i say, let's go with companies that are not overvalued and i think we'll do fine. >> really? speaking of, one being tesla,

which had a great year as a stock. not much of the year but towards the end, as we all know. we did get those numbers on deliveries. let's go over to phil lebeau. i see the stock trending down. >> you have the first annual drop in deliveries ever for tesla. we'll talk about that in a little bit. in the fourth quarter. these deliveries are shy of expectations. for the quarter the company delivered 495,570 vehicles. the street was expecting deliveries of 504,770, and they needed to deliver at least 515,000 to have full-year deliveries top what they were in 2023. obviously, that is not going to happen. for the year, tesla deliveries come in at 1.789 million vehicles. remember, in '23 they were at 1.81 million vehicles. so, there's your first year over year decline. not a huge surprise that was going to happen.

the 515, almost everybody said, it's going to be tough for them to get to that level. the question now becomes, what do we expect for 2025? elon musk in some conference calls after financial results in the -- in 2024 indicated that, look, i think he said he thinks that sales could go up or deliveries could go up by as much as 20% or 30% in 2025 as they roll out lower priced models. they start to make advancements in terms of robotaxi technology. but clearly, these numbers alone in the fourth quarter, shy of expectations, 10,000 shy of what the street was expecting essentially. 495 versus 504. the first year over year decline in deliveries for tesla since the company really started ramping up production back in, what, 2011, 2010, et cetera. >> phil, interesting to note as well, byd reported its numbers. it doesn't sell all evs. the overall number was 4.3 evs and hybrids. i think evs came in about 1.76.

i just mention it because it is such an important competitor when it comes to this market for tesla. >> yep. right. and you put up a great point there that the byd numbers, hybrid business is huge for byd. that's where they're making a lot of gains in terms of their deliveries and sales outside of china. in terms of the ev business, china is where they are red hot. china is where tesla is feeling pressure. there have been some reports their registrations were as much as 7.7% in the fourth quarter, in china, which is an improvement. the market is growing faster than that, david. that is going to be what we see a lot of focus on for electric vehicles, especially when it comes to china. how quickly is the market overall growing? what's byd doing? what are other chinese ev companies doing? what's tesla doing? >> right. of course, as we all -- as you know better than anyone, i mean, musk had said, if you want to

own my stock, it's not about how many cars i sell. it's about full self-driving, robotaxi and robotics, is what he has been saying. >> 100%. 100%. it's all autonomous vehicle technology. the robotaxi, the development of that vehicle as they start to roll that out. what does the fleet look like? what is the take rate when they actually start doing that? when do they start doing that, david? they've indicated at 2025 is going to be a huge year for that. let's be clear here. waymo is out with autonomous drive vehicles in a number of markets around the country. not huge numbers but it's growing. and tesla is not even out in the market yet. so, that's going to be a primary focus in '25. in addition to the traditional business. the ev business where lower priced models are the key. and we've said this time and again, guys. when it comes to electric vehicles, you have to get that down lower than where they are now. even the model 3 and model y,

you have to go lower in order to entice buyers. >> right. phil, thank you. phil lebeau with those numbers from tesla. as you see the stock is off about 3%. after, jim, after a great run, particularly after the election of donald trump. >> i think it comes right back. it's absolutely true, waymo is local. but i think people are thinking, tesla, you know we talked about it, they have better data in terms of full self-driving. they actually have data, they just aren't in the running. what happens if president-elect trump says, you know what, the federal interstate, we're going to now allow that. the whole country folds, i think. that's what people are betting on. >> their full self-driving is making enormous leaps in terms of using generative a.i. in the way they are. >> waymo versus what they have -- >> but they have a different approach than waymo. >> they have an approach to have a brain on the car and a

brain -- >> and musk is famous, and fully admits, famous for making estimates for when they'll get there for full self-driving but i think there's a lot of optimism from advancements, 12.3 to wherever they are now. >> i think a lot of people feel, look, he has the ear of the president, so something about go well for him. there's no give without a get, so to speak. >> it comes right back. >> a lot has gone well for -- >> palantir and tesla are both -- yeah, they just -- because they have tremendous retail and -- >> would you really recommend owning palantir at 15 years worth of revenues it's turning out right now? >> there's a rule of 40 we use to figure out the actual value of an enterprise software company that really does emphasize growth versus -- precash flow and it's the best. it's not expensive when it comes to the rule of 40.

it's also, by the way, just a retail favorite. we keep misjudging. retail was interested in gamestop a couple of years ago. now palantir. it's real. >> oh, it's rule. people would shrug -- >> when you look at doge, the efficiency department, some is about the department defense. this is really an anecdote to the big five, the hardware companies that -- the ceo generally believes have captured the pentagon. it's very important, very logical ways to be able to cut the defense department that are in -- with musk. >> in terms of technology. >> you have these terrible hacks. the chinese hack of the treasury department. well, you're not going to have the chinese busy hacking our

most confidential data of the government. i think this is something peter navarro and president-elect trump are not going -- >> it's always worth mentioning how active the chinese are when it comes to cyber espionage. i think there were some reports. what they do in a given day is the equivalent of all the other agencies around the world in one day. >> terrible. terrible for the country. >> they are very much focused on it. it's been a strategy for them for 15, 20 years ago, to steal corporate secrets and to spy as best they can in so many different ways on our government and to infiltrate our key systems as well. >> i think they picked the wrong president to elect. >> that may be true. salt typhoon being able to infiltrate so many telecommunication companies, jim. we hear about it, but the background noise -- boardrooms know about it. we talk often about the cybersecurity firms that have benefitted greatly from the actions of the chinese.

>> where's crowdstrike, where aren't they in there? i don't know who they're using. i saw a piece -- >> who using, the treasury or -- >> the treasury using. >> i don't know. >> i saw a note saying cyberark could benefit. if you call george kurtz, kurtz crowdstrike and palo alto, i think they would have a lot more to say about this stuff. i'm going to try to get them on the show. >> it's never ending. >> but i want to reiterate that tesla and palantir are going to be as loved this year. >> you believe that? >> yes. because now you have a president who is just -- >> can we come back to the broader market? they started to point to things -- >> he's making recommendations about who should be running germany and -- >> yes, i know. the chancellor did not take kindly. >> mr. 51st state president-elect where you have friedman -- >> is now canada.

used to be puerto rico. >> but you have a president in mexico that is not -- >> jim, before we get to a break here. back to where we started our conversation. what about the mag 7? you want to point to united airlines and things with single digit multiples as a place to potentially be. are you saying don't own mega cap tech as this year begins? >> i don't think you should own every one of these. i just don't think you should. but you can pick your best ones. >> you got anything -- nvidia has to be one of them, right? i can't imagine the man i'm talking to wouldn't be nvidia. >> yeah. >> the other one would be meta for you probably? i don't want to put words in your mouth. >> we own all but tesla and i wish we owned tesla. for travel trust. don't own personally. for nvidia, no, i think nvidia and apple have gotten too big. >> alphabet, and meta, to a certain extent, has always had a multiple that's pretty reasonable given its growth rate even with the challenges ahead for it.

as you well know, the one real underperformer from mega cap tech was microsoft. >> if you take a look at what marc benioff says pretty much every day about copilot and the failure it is, he's very vocal, that it is something that i think we'll have to look at, how valuable is copilot? >> well, this is going to be a year -- we were talking about it two days ago, comes down to invested capital in terms of a.i. may start to really matter. >> we'll start figuring it out. if we can figure out quantum computing -- >> quantum could be years before we figure it out. >> i mentioned nuclear in 2034. j&p downgrades google saying final ruling, government expected by august 2025. when i spoke with the general counsel of google, 2027 is the first time you'll get anything. remember, it's very much like microsoft, which i know you were around for. >> i was.

>> in the end it was overruled and not much happened. >> no. >> browser separated. and the browser had already been de facto. >> with alphabet, it's interesting, though, how often people go to chatgpt for a search query -- >> i don't use alphabet anymore. >> you don't? >> no, i just can't use google. >> you use gemini? >> gemini somewhat. perplexity somewhat. meta a.i. for when it's "people" magazine stuff. i have chatgpt 4. and i think marc benioff started attacking that and marc backed down and the economy backed down, and -- >> your buddies. >> they are. >> i like the ads. let's give you a look at futures as we get ready to begin trading for the new year. >> excited to be back. thank you. >> it's good to have you back. it's good for all of us to be back. of course, we want carl to be here, too. that wl beil next week. a lot more "squawk on the street" straight ahead.

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at least 15 people were killed and dozens injured in the early hours of new yore's day in new orleans when a man in a pickup truck intentionally drove into the crowd. the fbi has identified the man as shamsun din jabbar. the rented pickup truck contained an islamic state flag, weapons and a potential explosive device. he open fire on responding police officers. he wounded two. the suspect died in the gun fight. an fbi official say the agency believe he was not acting alone, but they have yet to disclose any evidence of co-conspirators. the sugar bowl, the quarterfinal playoff between georgia and notre dame, originally scheduled for last night, it's been postponed. it will be played this afternoon. obviously, given the security concerns. they moved it. meanwhile, a tesla cyber truck exploded and burst into flames

yesterday morning outside the entrance of the trump international hotel in las vegas. that killed one person inside the vehicle. did injure several others standing by. that is being investigated as well as a possible terrorist attack. police say the bed of the truck contained gasoline, canisters and fireworks. they believe the explosion was an isolated incident, yet they have not ruled out a connection between the explosion in las vegas and the attack in new orleans. both trucks, by the way, rented through turo, people rent out their own automobiles, when they're not using them. obviously, jim, not a great way to start the new year. >> don't want to get ahead of the news story here because there's a lot of investigation. we don't know much and don't want to opine.

you know, a tragedy. anyone who's been down there at that hour in new orleans knows that that's like daytime. >> yeah, yeah. we're going to take a quick break here. let's give you another look at futures. we get started with trading. about eight minutes from now. we are looking for a higher open. a lot more "squawk on the street" when we co bk.meac ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot. follow my finger without turning your head. no, just follow with your eyes. i don't think you understand what i'm asking. i don't think you know how owls work. get two pairs of progressives and an eye exam for $149.95 at america's best. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry

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take a look as we get started here, about to get started. potential s&p gainers. simon properties, upgrade. >> it's very tight. retail is very tight. david simon is the best. >> yeah. the death of the mall was greatly exaggerated, i think it's fair to say. at least the a malls. >> container store, big lots, that's not simon. >> party city, container store, wasn't great, bankruptcies. we have jim's first mad dash of 2025 coming in just a moment from now. don't forget, by the way, you can catch us any time by listening to and following the "squawk on the street"/"opening bell" podcast.

let's get to a mad dash with jim a minute and a half before we get started with trading. you can talk palantir all you

want but it's applovin gave the most return. >> i think this may be incredibly overvalued. you can't short it. but this is local ad placement. i think i know people coming into it. it's one of those stories where they have big margins. if you came in with anything smaller, you know, lower price, you could obliterate them. they would say, look, we are so entrenched. i say, give me a break. i know you do have earnings. they do have earnings. they could earn 350. i think a stock that started the year at a fraction of where it ended at $39 to $323 is a stock you ought to think twice about. take a little off. >> a little off. >> but not short it -- >> no, no, because that gain, we found there's just -- it's so

fraught, in a situation others are short. we learned that from roaring kitty. >> yeah. that guy lost all credibility with me after that -- the last one on gamestop. [ bell ringing ] >> there it is. opening bell for the first time in 2025. here at the big board, american red cross, blood donor month. at the nasdaq, a recent listing via spac. by the way, spacs, they have not died. they have not died. >> and there's a sucker born every minute. >> a lot of the rules around them and, the various allocations to given parties have changed. they're more favorable now. yeah, spacs, i thought after that period of '21, '22, would go away. >> yeah. i think people are always trying

to find something new and exciting. lindy is an old-fashioned industrial that my travel trust owns. they also do oxygen for at home and they also do carbonation. most importantly, they do carbon capture. i think this can be a year of carbon capture even as the president-elect may not believe you need carbon capture. >> that's interesting because there's a lot of questions about what parts of the inflation reduction act, poorly named, really was climate change bill, will be rolled back by the incoming trump administration. there have been a lot of strategies, at least partially dependent on carbon capture, including amongst our largest company, one i covered closely, exxonmobil. >> they're not -- they don't care as president. >> but you need to have a return at the end of the day. therefore, you need to have a price on carbon and -- there has to be -- they incorporate certain -- certain allocations from the government as a result of what they're doing that if

they were to do, change is the return on invested capital. >> in the meantime, we know president-elect wants to be able to use liquefied natural gas as a weapon against the russians. we saw russia's natural gas is not going through. certainly we have enough to be able to help europe, but we're not as able to get as many trains built as people are liking. last year -- >> the trains, we should point out, is not -- where these are the export terminals for liquid natural gas. >> when president biden put through that pause in approvals, that stopped a lot of production. >> that was change day one. >> yeah. they were about to rule there should be no more. >> pipelines as you pointed out as well when it comes to natural gas. interesting you note that because natural gas had a big move up at the end of the year. in part on ukraine saying no more there and also because of cold weather coming to much of the country. >> targa, a very good company, targa put through a pipeline

that is -- >> that's a big year, by the way, but when you go back a long way you can see we traded far, far higher. coming off all-time lows. >> that's a nice euphoria. >> yeah. >> look, i still believe that there have -- there's this incredible pent-up demand for stock. not a lot of offerings. the ten-year goes to 4.67, then people have opposition. i do think the shortage, i thought i would hear there will be five-year deals. nothing. >> give it a little while. it's still a holiday week. >> i find you're all over the map today. i don't feel like you've gotten

your footing yet. by the way, you're not alone. how are you supposed to figure out -- nobody can figure out what's going to happen in a year but you want to buy some of the mag 7, not all. you kind of want value stocks and then you worry, are there going to be more ipos? maybe not. what's going to happen with the trump administration? what's going to happen with interest rates? >> president-elect trump is a wild card. you have people say, look out, this is a smoot hawley, the tariff of all time that puts us in depression like the '30s and you have the idea that corporate profits will stay strong, so therefore you have to stay in stocks. you have the idea the fed is still cutting. if rates go down, that's a major reason to be able to buy stocks. yes, david, i'm not as confused as there are as many variables. >> there are a lot of variables. things will become -- also the questions about the level and depth of deportations and what

that will mean for the labor force. >> how about health care. those stocks were terrible. >> terrible. especially towards the end of the year. >> some of that i.r.a., they are really coming down on the drug companies. i was speaking to a prominent drug executive, he wanted to speak and no -- industrial exec tried very hard to speak to biden, no such luck. >> the populism of the trump administration does not necessarily mean they're going to look more favorably on those companies as well, does it? >> no, it doesn't. i don't think rfk jr. is so inclined to feel great about these companies. a lot believe the way to treat disease is vaccine and he's a skeptic. again, he's a health and wellness guy primarily. when i spoke to him it was not a long range -- >> it wasn't a particularly substantive interview you did.

>> no , it wasn't. but i think there's a lot of concern that health care could be bad again. >> when we say health care, there's a lot going on there. there are obviously the large pharmaceutical companies and the health insurers and you have the pbms and -- i mean, it's a lot of different things. >> i think wentworth will do something to make walgreens salvageable. >> when it comes to walgreens, i think sycamore is still giving it their best shot to try to do something there. we talked about any number of negating issues but my understanding is they are trying hard to get something done there. >> the terrific article in the journal about how amazon, costco, walmart continue to take share. amazon, focused or not, is who is the existential -- >> back to terrific reporting by the journal. what about their united healthcare story? i assume you ready that in terms

of all the doctors on staff there trying to diagnose medicare advantage, diseases and things of which many of the doctors have barely ever heard of, let alone diagnose for but they get paid higher on it. i tell people to read the story because i can't go into detail. they spent a year reporting it. it did not cover united healthcare in glory. >> no. it was very damning. i think there's a lot of people who get health care through work. i don't. i'm a different kind of employee. we just had our open season. david, you're looking at a family of four, $75,000, $80,000 and maybe they can't get to the doctor, and you look at yourself and say, we're very lucky. >> the numbers are staggering when it comes to insuring a family of four, as you say. there was a great deal of -- from these companies as a result. not to mention, by the way, nbc

as well. what we pay in, i have the company insurance, but in many ways it feels catastrophic. every time you go to a doctor, you're not getting anything back. anything. >> 500,000, that's all i could get for her because she happened to be in a area no one would write for and people were willing to block subsidies to make sure there's no competition. i don't want to get too deep in the weeds. but there are two different kinds of people. people who work and have it covered by work and everybody else. >> i know. it will continue to be a huge issue, one would expect. as you point out, those stocks suffered greatly towards the end of the year in particular. we'll see what the incoming trump administration means -- >> have we covered it enough? >> no, it's impossible to cover enough because it's such an important topic. >> do we cover entitlements enough. >> the only thing we cover enough is probably nvidia and apple. that's about it. we cover those enough. we haven't covered much this morning so i want to talk about apple. i notice on your morning -- your

great morning sort of rundown -- >> my top ten. >> there was a negative piece on apple this morning. >> yeah, they're going to miss. >> and you come back and talk about -- it trades at three to four times. >> i don't like apple. i like the company. this chinese discount, does it matter or not? what it really need is service revenue. >> apple iphone sales declined 8% year over year in december when they lowered the december revenue. >> the stock broke out at a level that wasn't supposed to happen. >> apple was not supposed to go to 35 times earnings. >> no. it had like so many others a big run at the end of the year. we're back to watching that -- >> increase in multiple and the equal weighted s&p which seemed

to be putting up a fight for a brief time gave in. the mag 7 reasserted itself. >> i think most analysts don't know what to say. >> perhaps you can't blame. $3.7 trillion. we hit it with phil lebeau, tesla shares are off about 5.5 -- >> good opportunity. >> you think so? >> yeah, i do. >> deliveries for the year were 1.78 million. that was more -- that was versus 1.808 million in 2023. >> can you imagine -- china is the problem. >> they produced fewer vehicles than 2023. >> look. i'm not saying it's autopilot to buy. i am saying i believe in the technology. i really do. i believe in the technology driven by nvidia, which is a close partner with elon musk.

even though elon musk chided them. >> people are getting ready for jensen -- presenting at ces. >> the 6th. >> that's coming up. >> any thoughts when it comes to one of the things we do cover closely? >> i think he's going to talk -- i'm hoping he talks more about video. the difference between blackwell and what we currently have, i think there's this idea that it's pentium 2 and pentium 3. i think it's going to be much bigger than that. >> in other words, the differential in terms of compute power, efficiency, so many other things. >> well, no latency, which would be good for self-driving. but i think robots are going to be a very big story here and now. witness the fact that fedex is currently using robots to unload trucks where it used to take five people. it's one robot. we don't talk about that. you know we need them in order to have higher multiples and we need them in terms of what's going to happen to our country

in -- >> the trump administration also follows through on a significant deportation policy. we're going to need more robots. a lot more. i don't know if they can build roofs. not sure how good they are picking fruit. >> i think they'll be very good having owned a couple restaurants. very good behind the bar. >> a robot behind the bar? >> oh, my god, the cash situation at the bar, it's better to have a robot. unless you have a robot that takes some of the cash, i don't think a robot could be programmed to take cash. at the end of the day taking $500. does a robot put $100 in their pocket? >> at some point they might. >> they aren't going to give you two, three free drinks. my daughter went to a bar and she said, this is the greatest bar. he gave me three, four drinks. he said, she's very nice. i said, that's my daughter! >> robots will try to find love,

too. >> david, if that happens, then it's -- then we have to cut medicare. >> they'll need cash. when i see a robot behind the bar, i'll -- i'll take a photo. >> i asked a robot to make me a shaken not stirred vodka martin any using smirnoff. it didn't even respond to me. it just snubbed me. >> where was this? >> at the -- >> at the nvidia thing. >> nvidia conference. it looked at me like, who do you think you are? meanwhile, i'm james bond. this is the only time i was not confused with james bond. >> it's true. it happens a lot. everywhere you go. >> sean connery or -- >> well, david, all i can tell you is that axon is the stock people don't talk about. >> axon as a great performer last year as well. >> software as a service company quietly taking over many jurisdictions, including in

brazil. there's a company that is 112 times earnings. no one talks about rick smith. they used to have him on all the time. they think it's taser. this is one of the most popular stocks in the world. had another unbelievable year and nobody talks about it. i thought it was important to talk about number of five on the list of best -- >> of the best performing -- >> that's why we bring it up. nvidia was four. microstrategy -- >> we didn't talk much about nvidia. i want to get more from you. it's nvidia, for god's sake. come on, man, it's the first trading day of the year. you hit it for like a minute. >> members at the club are getting -- i want them to digest some of the comments i have on nvidia. >> so we're doing the old pay wall thing here. >> i just think it's appropriate given the fact there are a lot of people paying for it. and there was an ad for it during the penn state game. >> for your club? >> yeah. i have a picture of me underneath it. >> we've hit some tough times here when you can't talk about

nvidia because you got to get it to the club members first. woo. >> i think they deserve -- i mean, i learned this a long time ago. people who pay get the edge. dade, comcast was upgraded by affirm -- >> speaking of our parent company. >> it was very encouraging. it talked about -- >> what did it talk about? what would be encouraging? >> it talked about low multiple, robust. >> free cash flow. good free cash flow yield. >> unloved. >> unloved. >> unloved. >> two double digit percentage declines in the stock back to back while the s&p is up 20-something-percent will do that. >> wrong quarter business. >> yeah, like those robots. >> people asked me, do you use youtube tv because it's better than comcast? i said, i work for comcast. >> going up to 83 bucks a month very soon. >> well, premiere. >> i have it but i paused it. i paused it, because i also have cable.

i don't know what i'm doing. i have both. i have cable, the youtube tv. >> that's wrong. we'll talk offline about that. i'm looking at some names that are up this morning. >> what have you got? >> i don't know. exxon and chevron both putting -- >> yeah, that's just -- >> i got the banks kind of looking somewhat healthy. >> we didn't talk about how the banks came on strongly. they are never the leaders but jpmorgan -- >> banks had a great year last year. as well as many asset managers which i follow closely. >> kkr is one of the best performers. >> amazing. $132 billion market cap in kkr. >> amazing job. the regional banks did incredibly well. >> there's an expectation there could be a lot of consolidation amongst the regional banks this year. >> with jonathan kanter out, the justice department, this is often cited to me, i have a lot

of friends, not as many as you, this is going to be the big boom. this is what's going to happen. >> as we hit -- begin this year, there's an expectation we're going to see a lot of merger and acquisition activity. because of pent-up. my understanding is dialogues have begun. we'll see if they end up in deals. >> what, like over the -- >> still plenty of issues -- >> during the oregon game. >> people do -- people talk during the game. by the way, you could talk during that game. the other game, the asu/texas game you couldn't talk to anybody. >> no, there was no talking during that. >> that was just like, whoa, wow. >> yeah. there was a lot of talking apparently from the giants game they beat the colts. >> yeah, that was genius. genius. >> they can't even lose right. >> no, they can't. we got manufacturing pmi from s&p global out. rick santelli has the numbers for us. rick? >> yes, s&p global, these are december final reads on the

manufacturing side. our midmonth read was 48.3. it improved up to 49.4. but it's still sixth consecutive month in contraction. so the last six months under 50. the first six months of 2024 were above 50. 49.4 fits right in with november, which was 49.7. both just a bit. but still under 50. big story today is how the dollar index came in 2025 roaring. if it would have closed at some of the higher levels, it would be the highest close going back to november of '22. we still have construction spending and the ism pmis at the top of the hour. "squawk on the street" will return after a short break.

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take a look at bitcoin. obviously, ended the year quite strong. the last few sessions backed off from that $100,000 mark. you can see up nicely. as you might expect, of course, microstrategy following right behind. those shares up about 5.4% after a huge gain of over -- >> that's 40 -- obviously, it's a commodity so they get away with it. >> there you go. it's basically all bitcoin but gets a multiple of what it owns. up next, jim will have his "stop trading." don't go anywhere.

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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™. okay. let's get to "stop trading." >> we were talking about m&a and the banks. mike mayo has a great piece. citi dominant, number one pick. i like this because this group, not expensive. you talk about 13, 14 times earnings. could really benefit from regulatory approval. when you get a change at the ftc and justice department, you'll have more deals and there could be deals amongst themselves.

this is a group i really -- you said earlier, jim, you're kind of all over the map. i'm not all over the map when it comes to banks. i think they're terrific. >> you do? jpmorgan had a great stock price last year. outperformed the broader s&p. >> still inexpensive. i think it's interesting because i referenced the piece this morning, when i was working on wall street, you went to goldman. now you go to goldman, you go to jpmorgan. a lot of people feel like it's six and a half or a dozen. or you go to private credit, private equity. three or four firms you interviewed with -- >> that's not the case anymore. >> that's all there was. >> no. first "mad" of the year, what have you got tonight? >> we'll figure out which one of these applovins and walgreens should be bought and sold. going over the best and the world. i like the fact there was an ad for the club during the ohio/penn state game. >> you should. the club has been a great

success. >> yeah, but it's not the cloistered network. it's broad. it was a big deal for me. >> i'm glad. good luck. >> thank you to whoever did that for me in the comcast world. >> i had nothing to do with it. >> no, i think you had very, very little. i think you may have been against it. >> yeah. i'm against everything you do. >> thank you. >> you're welcome. >> anything i can do -- >> you can do better. yes, you can. so far, stocks off to a positive start.

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good thursday morning. happy new year. welcome to another hour of "squawk on the street," and mike santoli live at post 9 of the new york stock exchange. carl has the morning off. the s&p off three quarters of a percent, and this comes off a

string of losses before the holiday. will it be enough to get a santa claus rally? we are still in the zone. let's see what happens. we are clawing back a lot of the gains. treasuries, quickly want to show you what's happening here. it's been a story of higher yields and maybe that stood in the way of the equity rally, and so there's buying across the curve and the two-year yield below 4.25. tesla shares falling on the back of its latest delivery numbers. the stock down more than 20% from the post election high. more on tesla in a few moments. apple, rare discounts on the latest models in china as it has rising competition from the domestic rivals there like huawei.

and then more on the crypto trade later this hour. for now, though, let's get economic data that just crossed the tape and rick has that for us. rick? >> we are expecting a number up 0.3, and it comes in unchanged, and how does unchanged fit in? unchanged equals where we were in july to find a lower number you go to june of '24 when it was minus 1.1. we have seen construction come back from some of the june lows. seems to be slowing a bit baseded on this data. in terms of the manufacturing, i do not see that yet and we will come back and let you know when we get those data points. sara, back to you. >> thank you. jobless claims, more signs of stability and good news in the job market. so the number of americans

filing for initial jobless claims fell 9,000 last week, 211,000, and that puts it at a multi-month low and speaks to the fact that businesses and employers are holding on to their people. continuing claims, and i also wanted to highlight, is a gauge for people continuing to be on the unemployment claims benefits. it's been an elevated number and guess what? we saw that go down, too, and another good sign in the debate about whether the labor market is deteriorating and whether the economy is cooling off and whether the fed needs to keep cutting interest rates. you just don't see it in the jobless claims. you continue to see a picture of an economy that is growing to two to 3% now, and a labor market holding up. >> it is holding up. obviously around the holidays

there could be noise in the data, and the market action in december definitely registered some concerns in terms of the stock that did well and didn't do well that, in fact, the economy might struggle to handle higher bond yields where they are right now and less feed easing into the new year. the overall equity index got a bit on the lift on the beat from the pmi manufacturing. i think the market is graving confirmation that the economy hangs in there. by the way, industrials and banks in december, they are like 8 or 9% off their highs. there was a big gut check in the cyclical trades and i think you have a relief on the score right now. more broadly, i would point out, we had the makings for a relief trading higher, and market looking oversold and the median

stock and the s&p down 6.5% in december. obviously you get new money flows. a little by the laggards as we saw on tuesday, but right now looks like a broad rally. >> the market pmi came out and that was a little elevated but still under 50. the official december pmi comes out tomorrow so we will get further evidence. this has been a very important time for the consumer, and so far from the spending numbers we are getting from places like adobe or mastercard that puts out new numbers last week, and here's the adobe ones. the purple is where we are this year compared to where we have been in the previous few years for thanksgiving and black friday, both higher, tracking a little lower on cyber monday than last year but still with nice growth. i mentioned the mastercard numbers also showed better growth than expected, and what

we saw last year, almost 4% there. bank of america shows us where the growth is coming from when it comes to the consumer in the market and i thought this was a good deep-dive in the consumer note. the themes that worked in the market, e-commerce, and we have seen online spending boom, and the cruise lines had a good year. it was not universal. china revenue exposure has been a weak spot because of the growth there. fast-food restaurants didn't have a particularly great year and neither did las vegas names. wasn't overall inclusive but a good performance for the consumer. >> i have to imagine walmart was in the consumer -- >> costco had a good year. >> walmart, the standout, really. >> amazing. >> meanwhile the investigation continues into the new year's day truck attack in new orleans. this morning at least 15 are dead and more than 30 are

injured. anybody news reporter, chris pallone, jones us on that as well as the tesla truck explosion outside the trump hotel in las vegas. what can you tell us? >> authorities in new orleans, federal, state and local will have another briefing about the deadly incident on bourbon street in about an hour from now. we know authorities want to reopen bourbon street and intend to reopen it probably before the kickoff of the sugar bowl that takes place at 4:00 this afternoon eastern time. this all coming a little more than 24 hours after this deadly attack that authorities are investigating as a possible incident of terrorism. authorities say that around 3:15 central time yesterday morning, a 42-year-old man named shamsud din jabbar from the houston area took a rented forward f-150, barreled down bourbon street,

and he killed 15 people and injured 30, and opening fire on officers and hitting two and they were able to return fire and kill him. president biden said there was an isis flag attached to the struck and explosives in the vehicle. they are trying to find the motive. president biden said in the news conference last night that this person, jabbar, had posted videos in the hours leading up to the attack expressing sympathy for isis and also for his intent to kill people. that investigation is underway. there were search warrants executed both in louisiana and in texas trying to piece together whether others were involved. authorities say they believe jabbar did not act alone however there's no manhunt for any specific accomplices going on right now. just a few hours after that in las vegas another tourists hot spot, a rented tesla cyber truck pulled up in front of the trump

hotel off the strip and exploded and authorities just confirming to nbc news that the man that rented that cyber truck, his name is matthew livelsburger, and they have not been able to identify the body just yet, but that's the suspicion they are working on. the motive is not known. authorities have been able to trace the rental of that vehicle, and it drove from colorado to las vegas yesterday morning, and seven people outside the truck were injured but they will make it. the motive in that attack is -- or incident is entirely unclear at this point. authorities are trying to figure out whether the fact that both people involved here appear to have military backgrounds. jabbar in new orleans was in the army for nearly a decade and deployed to afghanistan and it's

believed that this man was also in the military, and they both rented vehicles from the same vehicle renting app, and whether those are coincidences or a connection between the twos in inincidents. >> any updates? >> we do know officials in new orleans will be holding a briefing in about an hour. >> okay, chris. thank you. >> we will continue to monitor the story, by the way. tesla did report fresh delivery numbers in the last hour, and phil lebeau has some of the details for us. >> david, the fourth quarter came in below expectations in terms of tesla deliveries. the total number 495,570 vehicles. the estimate was about 9,000 vehicles higher.

over 504000. model 3 and model y made up the vast majority of vehicles delivered by tesla, and the significance of the fourth quarter coming in below expectations is for the year tesla will fall about 20,000 vehicles shy of topping what they did in 2023, and so tesla has seen its first annual drop in deliveries, and not by a lot but they did not hit what they delivered in 2023. they still retain their lead as the global leader in ev sales. that 1.79 million is still more than what we saw in pure electric vehicle sales from byd, and that chinese company coming on strong, but look at the shares of tesla as well as byd.

the thing to keep in mind with byd is the company reported about 1.6 million in total sales for all of 2024, but its fourth quarter ev sales, 595,000, so 100,000 more than what tesla reported in the fourth quarter. that shows you the growth that byd is seeing right now. take a look at the chinese ev stocks. we're showing you these because in the fourth -- in december, compared to december of '23, ev sales in china up 48%. guys, we have talked about this time and again. the ev market in china continues to grow at a very rapid pace, and while tesla has been able to grow its sales according to registration data in china in the fourth quarter, it's not growing at the same pace as the market overall. you see the byd numbers. so while tesla is still number one for '24 in terms of global ev deliveries, byd continues to

grow at a very rapid pace. >> very close. i mean, again, they sold 4.3 million, i believe, evs and hybrids in 2024, byd, and i have it as 1.6 million evs last year, so very close. >> 1.76, so very close. >> and your point, the shanghai plant for tesla obviously fills the domestic market there and also other areas and regions nearby, isn't that right, for tesla? >> for tesla china is an export center. >> right. >> production center. >> right. >> so while it supplies the bulk of the supplies go to the china market, and southeast asia has really become an area where chinese ev companies are targeting their growth, and they are targeting their growth

overall for auto sales in asia, but especially when it comes to ev vehicles. you add them up, david, and you start to see where the growth is globally for the chinese ev players. >> i remember your trip to -- what countries were you in when you were taking a look -- >> south america. >> chile. >> yeah, that was -- >> yeah. that was very interesting. >> not a huge market. not a huge market but china has come on strong there like israel, australia, thailand. you bring it up to people and they say how big is the thailand market? you start to add all those up, and the rest of the world becomes very big and very important. >> and as we pointed out a number of times, one of two vehicles sold in china is ev, and as you might imagine, gasoline sales may have peaked in that country.

>> tesla had a great year last year particularly up towards the end of the year, about 60%. down from 20% from the post election high. joining us, our analyst, jed, good to have you. what do you make of the delivery and production numbers we just got? doesn't look like jed is able to hear me. >> he's ready and standing by -- that's not him? oh, it is him. >> my fault. >> okay, until we work on getting him, the bulls will say the delivery number is not a reason to buy the stock -- >> there's no way it's a $1.2 trillion company based on the cars. >> the bears will say, look, they are not producing as many cars as they need to fill into the valuation. they will point to a lot of things, and the last quarter in

particular, energy storage, and jed follows that part of the story closely. it's becoming a real significant story. and elon musk said don't own us for the sale of the automobile because you believe in self-driving row bow taxi -- >> he's the richest person in the world because he got investors to pay him up front for the promise of some future. that's the reason where he is, and the cars are not the future but the present. >> jed can hear us now. is that correct, jed, do we have you? >> he does? >> yep. >> there he is. >> all right.

great. we have been talking through it in terms of the delivery and production numbers and storage, and first, give me your take on the delivery numbers? >> if you look at it the disappointment is with the sx and cyber truck and that's a big disappointment, a variance of 23%. if you look at the model 3 and y, that is basically flat, so i do think there's an issue in the higher end vehicles which might speak to sort of consumer fatigue more than anything else. that could be fixed with, you know, a hatch back or the model 2. yeah, that's how i would read the delivery numbers. certainly a disappointment in terms of where they came in. >> is your expectation that the fight for market share will be more intense given the rise of the chinese ev makers, in particular, byd? >> yeah, definitely europe will

be your battleground between china and the u.s. from a u.s. perspective, we don't see that as much as a battleground area and quite frankly, i think elon's position with the trump administration probably helps, you know, from a market share in the u.s. >> yeah. jed, while we were trying to get you online here we were talking a bit about energy storage as a component of the business overall. how important is that? it's growing quickly for tesla? >> that's the win here today if you look at the silver lining, we were at 10.3 and we were the high on the streets with respect to that. my position is i think the return on a dusty capital is the greatest in that business, and quite frankly, i think the demand side for energy storage is much larger than what people expect. it's not just wind and solar but it's to stabilize our grid. if you look at the trends in ai,

where you will see the greatest bottleneck is on the energy, and i think that's the silver lining here. >> jed, in terms of the markets' evident excitement about elon musk place in the administration, and can we look at what types of regulatory relief? there's a lot of talk that at the federal level there's nothing that is constraining things like self driving in a particular way, and waymo is doing what it's doing, and so what things would you expect to improve on the regulatory front that will come to bear at tesla? >> if you look at the timing and the growth, i think you need to separate both, a play on xai and the ability to invest on that side of the business, which i think is just as important as kind of elon's, you know, position with doge and what people might be reading into

that. hard to quantify. i mean, if you look at the last administration -- or the current administration, they were about as negative on tesla as you could be, so i think you could -- the potential for relief around autonomy is certainly an area that seems to be a positive. tough to quantify how that will impact that. >> what about the running and operation of tesla? this comes up every so often because he runs so many different companies, but now that we see that doge and the administration is occupying a lot of his time, and we see him a lot of mar-a-lago, i mean, people buy the stock for elon musk. how much is elon musk involved in tesla? >> i think he is still very involved. i have known elon for 15 years. we're not friends or -- you know, i have known and had several meetings with him and i think what you do get with any of elon's companies is a level of focus that is just -- it's a

different level than what you get with other companies. you have engineers that are going to have direct meetings with elon where he's taking a first principle's approach to everything the companies are doing, and so far he's been able to manage all of the balls he has up in the air, so that could change at some point but right now his companies are -- you know, we used to say they are bringing a machine gun to a knife fight, and i think that still holds true in terms of the competitive edge. >> jed, appreciate your time. thank you. >> thank you very much. as we head to a break, let's get a roadmap for the next of the hour. goldman sachs with new picks and what investors should know. plus, the out look for rates and the economy with the former fed warning don't count on lower rates to save you. and then a deep-dive on one name in the new year.

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simply overvalued they call the turn around there a mirage. it was a very strongly performing stock last year. of course, it was not that long ago where there were a lot of concerns about the financial viability of the company. that was resolved last year, and clearly mike has issues with it and looking through some of the various data points they cite. interesting the market is not reacting at all? >> not much. crazy perspective. the stock was at 360 and went down below 5. >> yeah. >> the insiders, the founders put more money in. >> yep. >> it's still at last report almost 11% of the float was short and i have to imagine in the last few weeks some of that has gotten covered, but who knows. especially if you compare it to

traditional auto dealers, and you consider maybe there's credit risk in the terms of the loans they make, and the market not taking heart in that at the moment. >> and a lot of the market is talking about how overvalued the stock is, and nothing fraudulent, and the company added 139 in market cap. a $34 billion market cap increase and goes after the insider sales from some of the family, for instance. >> talks about a toxic loan book, the loans they are making to their buyers. yeah. >> look, i think it's worth noting that hindenburg had some successes, like the nicolas. >> yeah, the truck rolling down the hill and not being powered as they said it was, yeah. >> for sure. >> and to your point, it's mixed. >> i can see why hindenburg

might think this is a decent spot to try again. a historic flow, and our next guest plays out the investment playbook for 2025, and the chief financial strategist joins us now. top line for your setup for 2025, and we are coming off two great years and lots of retail participation as the eft inflow number shows. >> great to see you. happy new year. we think 2025 is going to be all about keeping your foot on the gas pedal. more fragile than any other time we have seen over the last couple of years, and we have confidence in the earnings outlook, and balance sheets are

in great shape and the pro growth administration is coming in and that should help deliver that 10% earnings growth figure. but where the fur jill tee comes in is on the valuation side, and we have seen it increase 20, 30% over the last couple of years and that's a high starting point. you have animal spirits running like crazy. that just means if any of this news doesn't go as planned, this good news doesn't go as planned, the drawdowns are going to be more significant. >> if you close your eyes and say there's a shot at that, that's 13% up from here. why do i have to be hedged? >> it's a good year, but i think a lot of the expectation is on momentum and sentiment continuing to be high and that's where the risks come in. the market is in the 93rd percentile relative to history, so we are seeing options-based etfs, and one of the top ideas

sticker qflr, and this gives you exposure on the upside while having a 10% floor on losses on the down side, so you are getting 70 to 80% participation if the stocks keep running which is incredibly important, but the drawdowns could be significant which is why the floor is so incredibly important in 2025. >> yeah, i mean i know obviously that's one of your funds and i know that investors have shown an interest in these structured etfs where you do have downside protection, but really in bottom line terms, what is an investor paying for that embedded option, that hedge? >> well, with qflr it's different. we are buying 10% out of the money, but we are capitalizing short dated options, and that helps offset a lot of the costs

of protection for the strategy. it's a give and take, but for lot of investors right now, when they are looking at the starting point, again, where the starting valuations yes, we should be in a pro growth environment, but with the down side being so potentially significant, if any of the good news doesn't fall into place, fiscal paul olicy, think that's the cost of protection at this point. >> thanks a lot. >> great to see you, mike. goldman adding three new stocks to the conviction list. fiberoptic manufacturer, belden and others. we're back in two.

the street." i am pippa stevens with your cnbc update. biden will honor cheney and thompson for their work on the investigation of the capitol riot, the second highest civilian award.

president-elect trump said they should be jailed for their roles in the probe. ukraine started the new year by halting the supply of russian natural gas through the country, marking the end of decades of moscow's dominance over europe's energy dominance. ukraine said it left the pipeline agreement lapse yesterday. pregnant workers in new york will now be able to take paid medical leave to attend prenatal appointments, up to 20 hours of paid time off for pregnancy appointments and fertility treatments. and then we are talking about the outlook for the year, and we will have the forecast for rates in 2025. back in a moment.

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and off to a nice start today in the new year. bitcoin closing the year up 120% for its second straight big annual gain, the fifth positive year out of the last six. that follows a 157% gain in 2023. the big run for bitcoin giving crypto related stocks a nice boost as well. micro strategy had a tough run in december but finishing the year up more than 300%. robinhood also up 200% in that stretch. coin base up almost 60%. all of them did pull back last month. >> and a weird look at the correlation, the dollar had a good year, the bt in a decade. it's not like it was a dollar alternative. >> not at all. it's evolving to a risk asset restorative value -- >> maybe a gold alternative a little bit. >> for sure. u.s. treasury yields or lower as we mentioned at the top

of the hour to start the year. policymakers expected to hold rates steady this month and an analyst said this about the cuts. >> the fed puts in roughly two quarter percentage cuts, and that seems reasonable but it depends on how the economy evolves. if we continue to get a strong economy and if inflation is resistant from the classic last mile problem and inflation has come down a lot, but getting to the 2% goal from where it is now, that may be pretty tough so we may not get many cuts at all. >> how should we think about that? is the economy running hot? >> the economy seems to be running pretty darn well. the labor market is strong, and you may see a little slowdown during this next year but if it

continues to be strong in both the labor market and demand side, that doesn't leave a lot of room for inflation to be coming down. >> you know, it's interesting, in a year where the fed cut interest rates 100 basis points, and i men tioned the dollar's performance, and it was up against other currencies, and mortgage rates are sitting at the highest they have been in weeks. what do you think the fed will make of the fact that as they cut rates, they have gone the other way? >> i think the fed understood even though they are cutting the short rate, the long rate, the ten-year rate, which is what mortgages were based off of was not going to be coming down dramatically, and we had a inverted yield curb and that has been the way for a number of years and that's the unusual situation and not the normal situation, so i think that coming down will lead obviously to lower shorter term rates, money market rates, but i don't think the long rate will be coming down that much.

we have a lot of investment demand because of the excitement about ai. you have a lot of concerns about continued deficit spending and so i think that's going to lead the longer rates to stay in the range that they are in now even if the shorter rates come down. >> six-month high i should say on the 30-year mortgage rate that we got last week, which is not great. do you expect it to start crimping demand and the overall economy the fact that we have these rates again? >> we are finally getting significant positive real interest rates, and that's adjusting for inflation. until the fed raise rates above 5%, and the inflation rate fell below 5%, and the real number was still negative and that was a great time to be borrowing. now real rates are higher. i think that will have some impact on the housing market and will also have some impact on

sectors like commercial real estate where a lot of people were expecting, rates will come down and everybody will refinance cheaply. i don't think that's going to happen. >> you mentioned ai. i am curious, do you have any expectations in terms of its contributing to increases in the end? >> we have seen signs not just from productivity growth but also other signs like business formation and, you know, very much excitement about investment and investment opportunities, and that's also coming from expectations from president trump deregulating and boosting -- boosting a more positive business environment. i think that's all contributing to expected higher investment and expected higher productivity. we will see if that pays off quickly. it often takes a long time for these things to come through but

we are seeing stronger productivity growth. >> really quickly, how do you think about the impact of tariffs? is it a one off inflation impact or a rolling impact the fed would need to respond to? >> well, typically it's a one-off, but if there's a trade war things will go higher and higher, but if it's a one-off 20% tariff, that's not going to lead to a long-term inflation, and imports are only 15% of u.s. gdp, and that's substantial but much less from other countries, and a 10% tariff on that leads to at the most a 1% increase in prices. that will happen over time. >> randy, thank you. appreciate your outlook. the former fed governor, randy

krauz inner. and then up next, the mystery chart. just around 50% of the street calls it a buy from here. more "squawk on the street" after a quick break.

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oh i gotta take this carl, it's schwab. ♪ schwaaaab! ♪ have a choice in how you invest with schwab. boeing the worst performing stock, was more than down 30% after a significant comeback in the latter part of the year. its worst year since 2020.

your base case is 200, which when you wrote it the stock was lower than it is now, and it's down today. you are looking for revenues up 18% this year and 16% next year. >> yeah. >> how confident are you in the numbers? >> it rallied once the strike ended so we are looking for free cash flow improvement, and $6 billion in 2025, and positive $8 billion in 2026. what is driving the rally is that improvement in production, and they are getting deliveries started and we are getting a 6% increase in deliveries next year, and it's the max that is improving. you also have two significant losses in 2024 that continue in '25, and one of them is the 777x. >> that continues to be a weak

spot in the company? >> it's a big risk and it's on five development programs still in different stages so that's a watch item as is the 777x, and we ill have pretty depressed earnings on the max because you are so delayed from the strike and alaska this time last year that you are giving away the airplanes essentially for a discounted price. >> they are finally going to exit this years' long downturn, and just -- >> six years. >> a series of events that have been nothing but bad for the company. >> yeah, i think we have seen changes in management potentially fix that, and the right sizing of the workforce, and boeing is reducing its workforce and it's one of the most inflated, which is surprising, and a culture change on safety, and not that it was before but there have been lots of short falls to say the least. >> every time we saw a new ceo come in it was time to change the culture around the safety.

what ultimately -- you know better than we do, what went wrong in terms of prioritization and where the focus was? >> what went right is the question. not much, right? there was loss of programs and taking on the risk, and that was one of the critical errors in 2018, and then speeding up production and not taking the right steps. we will see where boeing gets to. we think they will get to about 40 on the max, and they did 18 in an average and that includes during the strike so it's deflated, and so we will see how quickly they can produce these aircraft. everybody else outside of boeing is essentially up to prepandemic levels. >> i was going to say the entire multi-year struggle for boeing has continued while the macro

demands for commercial aircraft has remained strong. is it still where it was before the pandemic whereas far as the eye can see we will see the increase? >> we need about 1,500 to 2,000 aircraft annually we are predicting from 2025 to 2027, and that's why the after market stocks worked last year, ge up over 50% last year, and up over 100%. you saw that. now you saw that pull back over the last 45 days to year end given boeing deliveries. >> rating agents -- >> seems like they are holding the line on investment grade and not looking to downgrade it, and with the cushion, i don't think that's a risk. >> thank you. losing a little steam here in the market, tech -- information technology has gone negative in the s&p on the

session, and apple and workday, those are some of the weaker ones in the session although still holding up. energy is the best performing sector right now and was among the worst last year. utilities having a nice session and health care, and those were underperformers, and consumer discretionary and real estate, we will look and see what happens. next hour, the outlook for pot stocks under trump 2.0. we will talk predictions with the ceo of tilray. we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james.

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stocks maintaining their early gains on the first trading day of the year. let's get to dom chu with some of the more big analyst calls on the street today. >> let's get started with shares of alphabet in the green dispaoeut the outperforming. those shares are coming up at a 37% rise. coming up to travel, norwegian

holdings climbing 2% or so after goldman sachs added the stock to the conviction buy list, and so norwegian up. uber is higher after being named to the list as well, and goldman said uber will continue to see bookings growth and analysts as jmp say they want more clarity on how it will manage the trap transition to autonomous vehicles. meta shares higher after being named a top pick at jmp as well, and expecting investments and extended realities like glasses and for generative ai, so keep an eye on meta. for more analyst calls for the

day, head over to cnbc.com. >> nasdaq doing a little better, and mega cap tech holding its own. other than apple shares which are down less than 2% perhaps on the fear about iphone price cutting and thli.e ke our live market coverage will continue right here after this. demodex blepharitis! and we're demodex mites. we're very common and super irritating to your eyelids... but we love making ourselves comfortable here! oh, yeah...steam time! if demodex mites are partying it up on your eyelids... it's time to eliminate the root of the problem with xdemvy. with one drop in each eye twice a day... you can kill the mites in just six weeks. xdemvy is the first and only fda-approved treatment that kills the mites that cause demodex blepharitis, a common eyelid disease. avoid touching the tip of the bottle to your eye

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♪ good thursday morning again. welcome to "money movers," i'm sara eisen with david faber today. the bulls fight to grab the reins. stocks trying to hold on to gains in their first trading day of 2025. should investors stick with what worked last year? we're going to hear from charles schwab's kevin gordon. tesla shares are hitting the kids a bit this morning. it did something it hasn't done in a decade. we'll tell you what it is and whether it's a bad omen. and can the battered cannabis sector revive ts fortunes in 2025? tilray ceo irwin simon joins us on the make or break year ahead for that industry. first up in the markets, trying to gain here, the s&p 500 up a third of 1% but it's off the