good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer here. the consumer electronics show, a jobs number on friday. ten year, still pretty elevated

at 4.6. a road map rally, and jensen huang is set to speak tonight. sales force cut to sell over at guggenheim. let's begin with the markets kicking off another shortened trading week as jim, will be closed on thursday. >> today is one of those days, where because that, they're pulling forward some bond options. a three year, today, a ten year, and then a 30 year. i mention those first, because the 30 year is back to where it was november of '23. very negative article about housing today. trying to figure out what sectors are weak versus the obviously sectors that everyone likes, which is enterprise software. you've got this group that like tech and the rest of the market seems to languish. i think that's because people perceive the rest of the market is hostage to rates and that tech is not hostage to anything. so i'm aware of that, and i'm

just oncerned that you have this speech tonight, 9:30, jensen huang, and every word, we're really kind of just, whatever he says is going to move things. against that, there's a really terrific piece. i like the ft today. i like it every day. about private equity. private equity trying to get into the 401(k) business, and mark rowen, who is a close associate of david when it comes to knowing about what's going on in private equity should know that mark rowen, ceo apologist. we leave the entire market to nvidia's performance. the way we've got the nvidias of the world, and there are these stocks that are hostage to rates and no one wants them. >> you mentioned the issuance from treasury, $119 billion with rates at 14 month highs. >> i start with those. if we do see a spike in the 30

year, say, or 5, that will start interfering with this tech rally that seems to be motivated by a lot of balance coming out, saying this is the time. interesting, the salesforce you mentioned is one of the few where there's not deceleration. i think that is wrong. i think analysts missed the move. i think agent force is coming on very strong, and an interesting post this morning. or mark saying they're really going after healthcare. and the interesting one there is viva. i think mark sees a lot of opportunity in that. >> a look at the downgrade. they're skeptical about agent force. they're talking -- they argue that double-digit growth is in the past. it's now more about 5 to 7 to 9% growth. >> agent force represents a salesforce. i am saying that i'm close

enough to recognize that agent force ads are working, and agent force is doing well in different verticals that have eluded sales. >> on the flip side, piper does name snow and microsoft as top picks of the year. >> i think we have to go back to what a lot of people feel was just kind of a ho-hum piece. brad smith's. his blog entry. he's offering an a.i. manifesto. the reason i say it's important is because listen, he's talking about $80 billion in spending, no he's not. he's talking about the new industrial revolution. you can't afford to not spend, not because you're worried about what other people are doing, but because it's so bountiful. i think one of the things that jenson is going to talk about today are all the new use cases. it wouldn't surprise me if we start hearing about robots. it wouldn't surprise me if we

didn't hear a lot about tesla. tesla and the self-driving car. tesla and the neuro network that is based on nvidia. that was a very interesting piece. >> b of a looks at what chip stocks did for ces last year on the 8th of january. nvidia was up 6% on the day. >> i think we also have this positive news about fox con revenue. saying things have accelerated there. micron really soaring. linked also to apple a.i. i think that there will be people who come out and say that too has been known. i find a lot of people who say that's known. i follow everything. >> this morning, you wrote the bears will come in, say we knew that, but we didn't. >> they didn't. i'm seeing these stocks pop. i love watching frank's show,

because you get the unmitigated tape. then just boom. i read later, everyone knows this. well i didn't know it, and i follow really closely. not like the salesforce, where i'm saying analysts don't know anything. but this is my life. i wish my life was better and different. >> it's black monday. >> i come back saying we didn't really know that foxcon was that strong. we didn't know that the ads -- the matthew mcconaughey ads which by the way he wrote, are being really effective. brad smith, not talking about 80 billion. talking about how you have to spend billions just to be able to stay in the game. jensen huang will be talking about how if you spend a dollar, you get four times. >> kind of leading you to upgrading ciscoe on that front.

he argues that we're only in quote year three of the a.i. boom. >> going back and forth with been today. i am friends with his dad. a great chemical analyst at one time. i think there are a lot of people who realize that ben is not a cynic. that ben is looking for opportunity. i think chuck robins has so many good things going at ciscoe, in part, because they're kind of reformulating their whole business. but this acquisition is proving to be good. >> so ces is one big story tonight, and we'll watch chips as a result. the other is washington post's piece on tariffs. which reportedly aids considering, only on critical defense, pharma, energy. and that's had an effect on the dxy this morning. >> and i see copper trading up. we've been buying a stock -- sometimes i like to mention

things i do wrong. because i can also mention things i do right if i do wrong. we have been buying constellation brands. we just keep going down. all we were looking for was tuna, and what we got was a stock that makes beer in another country. this would make it so that you would not have a tariff on beer. i don't think it's a very popular thing to say, you know what working person? the price of beer is going up. which by the way, her last action suing distributers, that last one was a universal increase in the price of alcohol, completing her completely mystifying notion that anything good was bad. >> this is a club name. >> they report friday, and it's been wrong, because we know from brown forman that when you do everything including in the input a sticker saying it causes cancer, you really have

an erosion of alcohol of historic proportions. i come back saying alcohol is not acyclical. and people go back to drinking. but gop dash one against drink. cannabis against drink, but maybe not tariffs against drink. >> the other story benefiting this morning, alcohol and cars. >> thank heavens, those stocks have been in a bear market. ford can't get out of its own way. a lot of that is people worried about warranties. they gave you a lot of long term warranties, and the cost of fixing a car now versus 10 years ago, is up the most of anything, including insurance. it's the cost of fixing a car that is dramatically higher. i have brian crisanich on tonight. he knows the auto business.

auto a.i. and i want to ask him what the hell happened. the previous job he had was cdk software. this man knows about cars. he knows about semis. something is going on that is making cars too expensive to repair. >> we mentioned the price bump on tesla. the other news is united of course, going to start testing starlink wi-fi as soon as this spring. >> talking about going to start with regional and go national. i think he and andrew were joking about the idea that one of the most frustrating things is when you pay a lot for gogo and then it goes down. starlink makes a deal with the italian government. we switched to starlink, because e cut our cable bill dramatically. the one thing that's missing is that starlink is going to come

after our cable companies. t-mobile graded down today in two different firms. that's this fixed wireless. the coming collision of people trying to get in your house is going to be monumental and happening sooner than people expected. >> although the only friction may come from elon musk antagonizing the leaders of the uk, germany, virtually everyone in the eu. >> elon musk is amazing. from the very beginning when you have ambassadors who are supposed to not irritate the home countries, this guy is irritating all countries and he didn't have to be approved. alex carr, downgraded pounds here. i think you live in fear. anyone who downgrades pounds here, look over your shoulder. >> we'll get to th. at we'll talk some nippon steel and suing the government. a bunch of upgrades as well on

at&t, boeing, capri, with futures pretty solid on this monday. don't go away.

what if your mobile network wasn't just built to work out here... ...but was designed differently to also give you blazing fast wifi where you are most of the time? reliable 5g, plus wifi speeds up to a gig where you need it most. xfinity mobile. xfinity internet customers, ask how to get a free 5g phone and a second unlimited line free for a year.

u.s. steel and japan's nippon steel are not giving up on their plans to merge. both are suing the federal government. they have alleged the white house's decision was political, and violates the constitution. they argue the unions had undue influence. >> there's two comments here, one is nippon steel, and it's very statesmanlike. then the other is u.s. steel. saying biden's action is shameful and corrupt. it's political pay back to a union boss. the chinese communist party leaders in beijing are dancing in the streets. i'm not quite familiar, the only guy i've ever seen dance over there is elon musk. but it does seem to be a very contentious and ugly fight that

doesn't seem to end, even though it's a very small company and it's symbolic, frankly, it's kind of a little macbeth like. >> there's actually two suits. one is against the government. the other is against cleveland- cliffs. >> cleveland-cliffs has said over and over again, they're going can to get it. he's gone silent here. i'm speaking out about lorenzo. i've been trying to get him over and over again to get him on air. he's been very, i would say effusive about what's going on. but told me again and again, he has the room to be able to do this. meantime, his stock has just been clubbed. so i don't think people necessarily want his stock. but the steel stocks all together have been horrendous. and a lot of that is i believe

the mexican transit of steel. newport, a fine company, that really i think is spot on when it says it's chinese steel depressing the market. >> you've seen the percentage of s & p stocks below material today. 4%. >> the untold story of the underneath what's going on. you've seen the fed. then you look at the materials, and you say one thing that is under control is every building block of everything, whether it be wood, whether it be plastic, whether it be metal. they're just falling apart. people aren't talking about it, because we're so busy talking about a.i., and what it can mean. a.i. is great for productivity, but we should accept the fact that materials are going the right way for the fed. >> is there any expectation that the outcome on nippon u.s. steel would be different in this new administration? >> no. they both seem to follow along with that same decision, which is that it's a somewhat -- remember nippon steel answered

the objections, which is that nippon will get in there and start closing the thing. they'll say listen, we won't do that. i think what's odd is that we're as skeptical about the japanese as we are about the chinese. but the japanese have been our friend and china, which by the way, maybe we remember, backs iran, has not been our friend. but we treat them equally. if i were from japan i would be questioning, what exactly is the biden administration doing. they're heavy handed against us, and not as heavy handed against china, even though china is spying? >> so you don't think it would be an afoul of an america-first agenda to let the japanese do this. >> no, but i think everyone is so caught up in the rhetoric and trying to get pennsylvania, even as the people who are from that area are afraid that if left to its own devices, u.s. steel could close a great number of facilities. it's very convoluted because a lot of people just wanted to

win a state and said a lot of things they thought would win a state and now we're stuck with that campaign rhetoric. >> we'll follow the progress of that suit and see where it goes. we'll get cramer's mad dash countdown to the opening bell. pretty steady as we get ready for a busy week of not so much earnings, but definitely macro. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way.

and having someone who can help you get there. the key to being rich is knowing what counts. (luke) homes-dot-com is a new, elevated home-shopping experience. beautiful design, tremendously rich content. feels like a work of art! (marci) what about the app? (luke) uh-oh! (marci) wow! went all in on gold. (vo) ding dong! homes-dot-com. we've done your home work. what if there was a cruise that felt like no other? a cruise created by foodies— for foodies. one chef for every 10 guests, every meal prepared to order, and every plate a personal discovery. ♪♪ welcome to the world of oceania cruises, the world's greatest cities, and off the beaten path secrets. one memorable bite and toast at a time. it's more than a feeling. it's more than a cruise— it's oceania cruises. i had the worst dream last night. you were in a car crash and the kids and i were on our own. that's

awful, hon. my brother was saying he got life insurance from ethos. and he got $2 million in coverage, all online. life insurance made easy. check your price today at ethos.com. all the buzz around bitcoin isn't just talk anymore crypto has gone mainstream. at itrustcapital, you can buy and sell cryptocurrencies 24/7 with the tax benefits of an ira. that's right, with an itrustcapital ira, you can defer taxes until retirement or choose a roth ira for tax-free withdrawals later. setting up an account is quick and easy it only takes minutes. open your account today at itrustcapital.com. the new era of crypto is here.

let's do cramer's mad dash as we countdown to the bell. >> i eluded to this call. pounce is probably the most highly valued data analytics company. this is a very, very high growth company. and we really don't know how to value it. because alex carr, the ceo is saying listen, our valuation is confused. i am a believer of alex carr. i've read his book and een his videos, i think what he's got here is something that is much more special than morgan stanley talks about. it is the early stage of a.i.,

and alex carr gets it. it's mostly defense, but it's also consumer. i have growing respect for what the company is trying to do. even though it's seen hundred times earnings, it may turn out to be much less. it's got the highest rule of 40 about its growth and margins of any company. my hats off to these guys. if you go back and read the last couple of analyst reports it really is the exciting a.i. company of our era. >> is the exposure to government a plus or a negative, do you think? >> think if it weren't for the fact that you have people like elon musk who are aware of what he's doing, peter teal behind the scenes, i would say it's a negative. but now i think it's a positive. the reason why is the defense department would be rationalized. they understand the procurement process. they would take out a lot of cost of the defense department, because they think what's really at stake is cyber. not necessarily hardware, and i agree with that. i found myself agreeing with alex again and again, even as

he's certainly an abrasive personality, but so is elon musk. i tend to temper my view knowing that he is in some ways trying to be a street kid from philadelphia. not unlike bernthal who is from an upper class group in washington. >> he has been outspoken about the shorts a few times on our air. is it your favorite enterprise name? >> i talked about it this weekend and how i struggle with it. salesforce is my favorite. i said i would love to put it in my chapel trust, but it doesn't fit any parameter other than i think it's going up. that's a good hedge fund reason to own, but certainly not a good portfolio reason to own. >> we mentioned the guggenheim downgrade today. >> you either have to believe in salesforce or that it somehow hasn't caught fire. >> the other one on this one

were sam altman's comments on a.i. and that we will see agents work their way into the workforce this year. >> i think that's what jensen huang is talking about. the fact that you will see robots everywhere. health is an area we haven't seen. i've done one of these fta tests for a drug that i've invented, and you can't afford it, if you're an individual. there's no individual other than maybe musk. but if you had agents that could check in on the patients, the next thing you know is that you would have very inexpensive costs to be able to get in front of the fda. it does matter. >> we'll watch those calls nd a bunch of others as well. opening bell is coming up in about four and a half minutes. don't forget, you can catch us anytime, anywhere. the "squawk on the street," opening bell podcast.

busy week for fed speech.

already getting the first comments of the week out of liz cook. she does say the fed can be more cautious on cuts. >> i think the fed has to position itself that way. they didn't position itself well going into september. i wish they'd be a little more empirical about the work that needs to be done. it's insurance, it's in auto costs. it's in some aisles of the supermarket. just talk about where we can't get down. that's just going to lead you to housing. i think that housing prices are going to come down as rates go higher. we further thought if rates go down, housing prices would go down. that's just anti the ethos of this cycle. the buyers panic because there is additional supply a la what we see in florida. i wish they would be a little

more oriented toward the facts and less oriented toward the media. dudley's got a big op-ed this morning saying the fed has been failing the public on their public communications. >> i think now, i don't think it's ever -- unless you have deflation like we have in china, it's ever right to say we're going to go softer. you must always worry about inflation, because the election in many ways was about inflation. >> yeah, maybe mostly about inflation. >> i think so. i think that there were people in the biden administration that decided by personal issues and i think it was decided by the supermarket. >> there's the opening bell and the cdc realtime exchange. food and beverage technology company, celebrating its merger at the fed and ted space, a mental health firm as we're back within a stone's throw of 6k today, jim. >> you come in over the

weekend, you read all sorts of things, then you're deluged with information. because today feels like in many ways the first day of the year. there's a really interesting barclay's piece on the banks. darkest before dawn. raising the group for the first time since 2019. emphasis here on city. this is a group that when you look at it, they're selling at 11 times 2026 numbers. the idea that you have this valuation problem in the market, well look at these stocks. there's no evaluation problem with materials or with banks. the evaluation promise with this stuff that keeps getting upgraded, which is enterprise software. so there's a duplicitous nature with the people who work at the top end of these firms. they should be saying, there's two markets. there's the inexpense market

and the expense market. deregulation. i think there's a sense that anything goes. one of the things -- it's not a big deal, and it's not a confirmed deal, but paychecks, a company i have owned quite a bit, merging with pay corp. perhaps. i want to say it doesn't matter. the ftc fought activision merging with microsoft. the ftc would have probably fought pay corps because it's a rival of paychecks. this is an idea we're going to have to get used to. our colleague is going to have to chase down a lot of deals. there's a lot of deals that aren't going to happen, certainly on the griddle. why would paychex want to eliminate the ftc. well this ftc would love this. >> it might be a hallmark. of the next four years jim. the incoming president saying the story is wrong. that's a dynamic right out of

2017, isn't it? >> we're waiting for greg hayes, the retired ceo of united technologies talking about when he was born. it wasn't midnight, but he wasn't born yesterday. i see a piece that is very much in favor of governing right in. barclays talking about aerospace against defense. now defense is something i'm waiting for the president-elect to talk about because they recommend boeing, which is very interesting. they haven't recommended boeing in a long time. >> the 2-2-10. >> the cost of defense is something i think the president- elect is going to turn to. because i think that's another one in the valley of musk. i think we have to talk about musk even more than we do. there are many musks. there's musk on starlink. now we have a deal with musk and starlink and the italian government. we have a link when it comes to wi-fi. when do we have starlink when

it comes to cable and telco in this country? there was an article in barons about the company we work for in comcast. they threw the book at it. the one thing is they didn't talk about starlink and the existential crisis that's coming, given the fact that starlink, at least in italy presents a rate card that's so below the normal rate card that you just have no choice but to take it. >> right. >> and the payback is in three months. so we have to be recognizing that musk, i think the next thing you're going to hear about is starlink versus at&t, verizon, t-mobile, which had two downgrades today, and the wireless companies. >> wells cuts to equal rate on t-mobile. >> then the fixed rate. look, i think, i don't want to just sit here and say the cable companies don't have a problem. that they're, let's say complacent, because they are

doing things. but elon musk is operating at light, and they're operating at the speed of sound. >> in general, jim, are you telling club members, for example, that january will be a good time for fresh money? >> yes, i am. because i think that there has been a lull in tech spending, which is about to accelerate. >> is that just a year-end effect? >> some of that. but there's been a three-year low in tech spend. the money that's going to go into tech because of productivity is extraordinary. and productivity is fedex saying listen, we can replace people with robots. by the way, let's understand, other than white collar people, which have been slow to be hired -- >> that's a piece in the journal today. >> that's an amazing piece. we don't have enough people to unload a truck. when i went to the great celebration at nvidia, the current iteration cannot do what the next generation can

do. i saw robots trying to pick up a box of cheerios and that went poorly. i once saw robots trying to pick up jello and that went poorly. i think those will be triumphant. i just want to know what they're going to do once they lift up the cereal box. >> you have the president banning drilling off the atlantic and pacific coast. trump says he's going to undo that. but in general, you've got some cold weather. crude at 74. >> nat gas going higher. we were talking in our office, ben stone and jeff marks who work with me every day. and what we realize is that president biden is saying and doing things that are jarring -- >> symbolic? >> symbolic is probably a better word than meaningless. you've got one president saying one thing. then you've got a president- elect who is just saying, ignore that man.

ignore the man behind the curtain, but he's still president. it's just that there's going to be a tremendous amount of joy. president biden would raise the price of oil. again, tone deaf to the concerns of the working person. gasoline, supermarket. we want these down. the ftc did not go after any of the food companies to try to figure out why those prices are so high. they forget where the working person intersects with inflation. and one of them is gasoline. and you don't want prices higher. but the president was along with secretary granholm, about to cut off our plan to expand natural gas. thank heaven. look how much natural gas went up, just because it's snowing in some places. >> retail gasoline was not a deterrent in the election. >> is it possible that the current president is trying to send up the price of energy?

that would be a nasty legacy for him. >> we'll see. we'll see. certainly the nat gas story has been a big one. not just here, but in europe as well. >> we own cottarra for the travel trust. that has the least expensive natural gas. it's been a disappointment as has anything energy. maybe the weather is what was needed. i don't know. energy has been a real bear. chevron being a classic example. it's just been a dog, which is amazing, because mike werth is a fantastic ceo. >> hydrogen, while we're on the topic. some treasury rules plugs up 8% this morning. >> clean energy is lindy. a club name that has been one of the great performers of the year, but like all the materials companies has gone down. the materials companies, again, i'm focusing on them, because that's real economy. and the real economy is quite

weak. again, they should be saying we're worried about inflation in the -- if they're worried about inflation in the data center, the data center costs are actually coming down because that's basically steel and old technology that is doing quite well. but if you look at linde, that's a company that i expect to have revenue growth. it hasn't. it's just had tremendous margin expansion. yet, no one wants that stock. you can't give it away. >> i do want to bang out a couple of stories. one is uber and this accelerated buy back. >> why not? uber is a company that's been list behind, i studied that list of companies that became public in the last five years. dutch bros caught a very late upgrade today, unless you think it's the next starbucks. reddit seems to not be able to be contained by anything. uber has fallen behind. i think it makes sense to buy.

one of the things is this exowe exostential crisis about robotaxis. the one thing we have to recognize is there are a lot of people behind the seens that say musk ultimately will prevail with the president- elect. there's so much data that has actually been computed that how can we not let tesla jump ahead of waymo. i think self-drive, again, a huge theme. could be a huge them tonight with jenson law's 9:30 keynote at ces. >> we'll be watching tonight in las vegas. >> tonight is football free. >> i guess that's true. it's a double header saturday, right? >> i think that there's a piece in "the wall street journal"

about, is there a night where there is no football? i think it's funny. >> what breaks down first, the interest or the bodies? >> you can't stop those. by the way, i'm looking at retail. rh catches is critical upgrade. things look good there. i was a little surprised. i'm also surprised at the endless strength in target. the target buyers are so persistent. we don't talk about that we're seeing buyout interests in this group. the nordstrom interests. we have saks, and i keep thinking, anything retail, again the dollar tree caught a semi upgrade today. the retailer is down there with materials, things that you don't want to own. there are so few stocks away from tech that people are crazy about. autos they don't like. they don't like retail. they don't like housing. they don't like materials. but they like artificial intelligence, they like self-

driving. they like palantier, which will be up by the end of the day. tesla was down by autos on thursday. that was just an unbelievable time to buy. now the stock is up well in excess of where it was hammered. >> we mentioned some of media. but certainly disney, warner, netflix had a big night last night at the golden globes. now disney is i think confirming this report that hulu plus live wouldn't be merging with fubo. >> i'm not sure whether that's a needed move for disney. it is for fubo. but i think bob iger, who is a green bay packer fan, may be coming up against a force this sunday that will not be favorable. one thing is certain is this stock has done nothing lately, even as the situation has been improving, improving, and improving. movies have been terrific. the cruise will be. i think the theme park is starting to do well. millennials are no longer hurting the situation. >> something they want to

retain within the portfolio. >> absolutely. i think disney is kind of an undiscovered gem because of the way iger's positioned it. >> on the disney chart, i'm trying to remember where johnston made those cautious comments about parks. is it somewhere in the back half of last year? >> i think the parks are going to come back, in part, because universe is going to open. >> epic universal. >> i think a lot of people are holding back to catch both. maybe theme parks will not be asterisks anymore when it comes to comcast. i think that orlando is going to have a resurgence, but you want to wait for that new park. why would you go down there ahead of that? i think that's on people's minds. >> as for the globes last night, a lot of wins for netflix. amelia perez had 10 nominations. that's the second most in the

history of the globes. nikki glaser kind of ripped some of the streamers. take a listen. >> if you're watching on cbs, hello. if you're watching on paramount plus, you have six days left to cancel your free trial. tonight we celebrate the best of film and hold space for television. even oscar winning actor eddie redmayne did tv this year. he's nominated for peacock's, the day of the jackle. yes. yes it's about a top secret elite sniper that no one can find, because he's on peacock. amelia perez earned ten nominations pour nominations for netflix and i loved it. i think it is without a doubt the most ground breaking television show to ever auto play. if you do lose tonight, please keep in mind the point of making art is not to win an award. the point of making art is to start a tequila brand so popular that you never have to make art again.

>> there's a notion you can sympathize with, jim. >> absolutely. the mezcal market is still in growth. that's my wife's business. it's the only category left where there's actually growth. but it's got a small base. spoiler alert for a moment. squid games may be the most violent show i've ever watched. didn't see it coming. it had kind of in the end almost a concentration camp feel. i never want to relate to that, but it's popular and there's obviously a squid games 3. i mention that, because they seem to cover all bases on that network and it's loved, which is linear, which never can seem to catch a break. peacock, what is the butt there is the nba ratings are awful. i'm struggling over that. i find the nba to be fun, but there's endless games, and you know, they just seem to go on forever. >> it is a commentary on the

struggle to create and build mind share in this media environment. >> only netflix seems to have it. you always start by saying, what's on. then you seem to gravitate toward netflix, i think that is because it's still water cooler. it's water cooler. micron's not water cooler. >> although second biggest gainer this morning. >> micron had a bad quarter. the one thing it's very good is high bandwidth, which is data center. once again, the market wants to ignore the negatives when it comes to tech. there's u.s. services pmi. you can say it slowed, but that's still very strong. >> we did get some solid prints on those numbers out of europe. >> good morning, carl, indeed, we're looking to december final read. this is important. this is the service side and

the composite. the mid-month read was 58.5 on services. it drops. final read is 56.8. we also see a drop on the composite from 56.6, it gets replaced to 55.4. both of these comp to the weakest just since november. a couple issues to point out here. if you look at the service side, all 12 months on both sides of this were above 50. as a matter of fact, looking at 23 consecutive months above 50 on services. so in a macro way that's pretty good. we've had competing tariff stories coming out that have been moving the markets. squawk on the street will return after a very brief break.

(auctioneer) let's start the bidding at 5 million dollars. (man) robinhood gold members get a 3% ira match. while the wealthy hoard their perks, our retirement contributions are boosted by 3%. now with robinhood gold. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job on indeed, it's easier for talented candidates to find it. which makes it easier for you to hire them. visit indeed.com/hire

i had the worst dream last night. you were in a car crash and the kids and i were on our own. that's awful, hon. my brother was saying he got life insurance from ethos. and he got $2 million in coverage, all online. life insurance made easy. check your price today at ethos.com.

got a 1% gain on the s & p, but the nasdaq up 1.5%. information technology up almost 2%. you can see the key names here as we await jenson jensen huang in las vegas tonight.

your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. our advanced matching helps find talented candidates, so you can connect with them fast. visit indeed.com/hire

what if your mobile network wasn't so just built toct work out here... ...but was designed differently to also give you blazing fast wifi where you are most of the time? reliable 5g, plus wifi speeds up to a gig where you need it most. xfinity mobile. xfinity internet customers, ask how to get a free 5g phone and a second unlimited line free for a year.

it's time for jim and stock trading. >> i mentioned the groups that were low, low and behold, the healthcare stocks were down. witness the fact that proctor and gamble is down. the multiple is shrinking, that's something that's going to happen with the 10 and 30 years. these are stocks that will be hurt by materials costs. and maybe the prices are going to come down. they're end market prices. witness the fact that costco is really pushing these prices down. i don't think people realize the force that is costco and the force that is wal-mart, and the force that is amazon. these are the inflation fighters. but if you're president biden, the last thing you want to do is say, you know what, i've

been talking to wal-mart and they're doing the right job. that doesn't happen in this country. >> you don't think it's a 4x dollar -- >> i debated 4d dollar. but even some of the more domestic ones in this group are going down. general mills is a domestic company, and that stock was at 75, and now it's at 62. so let's keep track of the healthcare stocks. a lot of that is ira. the change, they're fighting this tooth and nail. merck having a total collapse. these are great american companies. but they're not trading like that. they're trading as value traps. i question how long that can go on. we'll know at the j.p. morgan health conference, when we go next week. i can't wait to go, because you have terrific companies that are being given away. >> jpm conferences are going to be about policy as we await this new administration. >> i think more policy than

a.i. but i think a lot of people are very fearful of talking about the government. if you haven't paid your million dollars upfront, i think that you live in fear, that you may be on some sort of black list. i talked about, i just mentioned it for the first time, because i think that it's one of the things -- i like to talk about what people are talking about behind the scenes, which is are you paying the million, or you're not. i've never seen anything like it. >> i don't know how they all agreed on a million. >> i went to president clinton's gala and it cost me $15,000. but maybe that's what a million is now. >> it's inflation. jim, how about tonight? >> i've got cerence. this is in honor of a tie up, yes, with nvidia, this is a company run by brian before at cdk and before at intel during

a period where intel had some greatness. intel must be preserved as a national treasure. a.i. is multiple enhancer of everything we follow. >> as you said jim, no football means we can stay up late and watch jenson. >> jeez no football, what are we going to do? at least we have thursday, friday, saturday, and sunday nextee d't feel get your fix of football. >> jim, thanks for joining us. the dow up 231, best back-to- back days since the election. don't go away.

>> university of maryland global campus isn't just an innovative state school, it's a school for real life,

one that values the successes you've already achieved. that's why at umgc, you can earn up to 90 credits toward a bachelor's for prior learning and life and job experience, why we offer scholarships and affordable tuition, and why we have online classes and the support you need from your first day to graduation day and beyond. no application fee if you apply by february 12th at umgc.edu. (auctioneer) let's start the bidding at 5 million dollars. no application fee if you apply thank you, sir. (man) these people of privilege... hoarding the financial advantages for far too long. (auctioneer) 7.5 at the back. (man) look at them — unaware that robinhood gold members now enjoy the vip treatment — a 3% ira match on retirement contributions. (auctioneer) 11 million sir. (man) once they discover their privileges are no longer exclusive... their fragile reality will plunge into disarray. ♪

a good monday morning will come to another hour of squawk on the street. i am sara eisen and carl

quintanilla. david has this morning off. stocks are on a high note. the s&p is up one full percent. it is led by technology which is why the nasdaq is also up. we are having a strong start after what has been a bumpy a few days to start 2025. utilities and staples under pressure. everything else is higher right now. of course that is being led by the usual suspects. the tech names and the micron chips. and micro strategy, brought, these are the leaders today. as for treasuries, the theme has been hired yields. that has been a bit of a roadblock. but the 10 year is higher this morning. 4.6 so we are back above the 4.6 level. the two is near 4 part 3. 30 minutes into the trading session and movers. huber announcing a 1 1/2 billion dollar accelerated share buyback program. while lyft gets an upgrade to purchase. both are higher today. were also keeping a close eye. they are on the move after foxconn reported record sales

and the ceo said to give a big speech or that coming up. t-mobile, one of the losers after rbc are downgraded the name to neutral on evaluation concerns. really taking the lead in this chip rally. nvidia. >> some pmi's and some factory orders. rick, good morning. >> good morning, carl. factory orders are going to be fresh november numbers on the headline. we are expecting down by 3/10 coming out a bit worse. but there is something positive here. if you look at last month, october. it was up to tens and now it is up 5/10. that will help mitigate some of the weakness in the fresh number. transportation was a dragon, because once you separate transportation we end up with up 2/10 of a percent. that is a bit better than what

we are expecting. also positive revisions to october up to 2/10. we will look at durable goods, these are november final reads. that means that there was a midmonth was going to replace. if we look at the midmonth, it was-1.1 on headline durable goods which now becomes-1 . 2. that would be the weakest going back to june when it was-nearly 7%. once again, if you take out transportation, the number will improve. goes from-1 to 2/10. it was-1 at the midmonth read. if we look at the non-defense x aircraft on capital good orders come up at 4/10. it is up 7/10 on the midmonth. finally switching from orders to shipments removed from the 5/10 up one point percent to up 3/10. so every see on the midmonth deteriorated to its final read. something to note today.

2/10 spread is hovering at 34 basis points. that is the widest, the steepest it has been in 32 months going back to may, 2022. carl, sir, back to you. his thank you, and a busy day that we have ahead. the highlight are going to be jobs on friday. we will get the december jobs report. because it is a jobs week, the jolt is also exciting. the job opening data that they pay close attention to. services also on tuesday which is a big swap for the economy. the minutes from the last federal meeting where the feds are pivoted its tone towards a more positive standpoint. from the cut so that ill be a good read. also jobless claims. you know, carl, we heard from two key federal members on the

american economic association in san francisco, california. they summarized basically the push, pull going on at the fed for wanted to do. here is the governor, we are fully aware that we are not there yet -- no one is popping champagne anywhere -- and we want the unemployment rate to stay where it is. acknowledging we are not at 2%. it does not mean we are going to go straight to cutting. but if they are worried about jobs. the san francisco president reiterated this. at this point i would not see further slowing in the labor market -- may be gradually moving around in bombs and chunks on a given month, but certainly not additional slowing in the labor market. they want to preserve this rate which has been low and healthy. at the same time, they are not there yet on inflation. that is why the market has trended how many cuts will get. but it is also why it is usually

uncertain as to what they will base their next move on to cut or not to cut. we still have these two factors at work. a bit of a cooling labor market, and also inflation that has come a long way down but not there yet. >> we mentioned this with jill kramer where he takes a hard look at the dots. they are failing in the mission to help investors understand how the fed is thinking. >> i thought those were useless, really. if they are so data dependent, how can they project in the next year what they think where they will be especially if they change every few months and they change drastically. that is what the point that dudley was making. to the economist who i followed for a really long time . he will deconstruct the 10 year treasury yield which is the blue line.

he deconstructs it into two ways. what will make of the treasury yield. the orange short rate expectations. with the fed is going to do and the yellow is the term premium. that is the harder to measure but the fed puts it out with extra compensation that investors demand to hold risk long-term treasuries. that has moved up. actually 80% of the move that we have seen lately on yields can be attributed to the term premium. 20% to change expectations will be for 10 years what does that mean? well it is still relatively low compared to history. we do not need to worry that bond vigilantes are coming and attacking. but it doesn't signal a change in where investors are pricing long-term interest rates. if it is the new administration, more government spending, operating annual deficits, greater volatility. this rising premium to hold you as that is paying attention to and worth thinking about. we are back in positive territory and moving up. >> rick mentioned the spread, 120 billion we will get to the

three year note later today. meantime, the s&p and the nasdaq are snapping those losing streaks but did close lower last week. our next guest is going for goldilocks in 25. it will be a year of above trend with some opportunities. microsoft, qualcomm, multi- asset class joins us this morning. , thank you for your time. his thank you and great to be here. >> we can talk about rates and earnings but you center in on how important the tech cycle is going to remain this year . >> absolutely. we do anticipate above trend growth. our anticipation is above consensus. we will see 2.3 to 2 1/2% real gdp growth in the united states. that in an environment where inflation continues to be well behaved . inflation will

trended down from the 3.3% level we are at now to 2.7% and 2.8%. to two and half percent by the end of the year. that is a supportive environment for equities and growth assets. with 4 1/2 to 5% nominal growth. that is why we remain constructive. and frankly we will own that magnificent someone they are great companies. but we see opportunities away from the magnificent seven. towards the rest of the market that can benefit from this higher nominal growth environment. >> we just mentioned yields a minute ago. does this return to the levels on the 10 year from last spring concern you in any way? >> well, the chart you just showed is the key chart. one of our key things is the tension of fixed income

investors and global investors will move away from this obsession with central-bank policy. and what happens on the short end of the curve and moved to a focus instead on fiscal policy and overall policy around tariffs, regulations. that means that volatility is moving from the short end to the long end of the curve in this concept. term premium is very important. we do feel that the 10 year treasury , we see the fell - fair value but it could pick between five and four this year. that will imply that even as inflation comes down, the term premium is going to be higher on the lower end of the curve. at the same time, the fixed income would point out that the two year treasury yield is capped at four and half percent. there is not going to be that much volatility. that is why it is going to give

markets volatility this year. how policy expectations translate into the long end of the curve. >> i'm so glad you like the chart and you summarized it very well. i wonder what the long-term implications for stocks . if we do see longer yields. >> we see that stocks can handle yields at this 4 1/2% level. markets are rattling today, yesterday even after rates have risen. certainly if yield is about 5% that is problematic. they rise towards five, that is going to cause some agitation in markets. but as our economic forecast expected, we will stay in this range between four and half to 5% in yields. that will create an opportunity to trade treasuries. and also to take advantage to use short-term selloffs associated with rate rises to to exposures in equities and other risky assets. >> we mentioned the opportunities you see in microsoft, qualcomm and. it extends to amazon and cisco and benefits from another upgrade on the street today. >> well, those stocks -- and i'm not the person who focuses on individual stocks. but we would observe that the magnificent seven stocks are magnificent companies. they are fully valued.

while what we want to have exposure to those companies in our portfolios, we see the opportunities away from those companies that we think are fully pricing in the good news that is out there. we want to look elsewhere in the market where we think that valuations are bettered on the cap spectrum, smaller company stocks. we observed this dichotomy where high yield spreads are secular at the same time. small-cap stocks have been underperforming and relatively more attractively valued. that, we think it creates an interesting opportunity away from the magnificent seven stocks. >> it is been an interesting dynamic for the last. erik knutzen, thank you and have a great week. >> thank you. here is our roadmap for the rest of this hour. the ceo is getting ready to deliver a big keynote tonight. how they are positioning. they got crushed last year

but they did make some gains in some major names in that space. we'll talk about it. u.s. steel, suing the government and cleveland over the blocked $14 billion merger. with some new reporting. squawk on the street will be right back. do not go anywhere.

♪ ♪ with so much great entertainment out there... wouldn't it be easier if you could find what you want, all in one place? my favorites.

get xfinity streamsaver with netflix, apple tv+, and peacock included, for only $15 a month. >> welcome back to "squawk on

the street". the a.i. trade back in full swing. 2025, and it's highest ever revenue for the fourth quarter on continued strong demand for a.i. surface, and it jumped by 50% to 65 billion dollars. it is boosting including nvidia trading above 150. and that would be a key hi from jensen huang in las vegas. we have details. good morning, christina. >> not including the big bump, nvidia was sideways for the last two months. but just keeping pace with the nasdaq 100. investors have been worried about several things. they are concerned about the shift from chips to software, china restrictions, and specific worries like blackwell chip delays into the headlines and falling profit margins. even though we knew it was

coming with gross margins. but ceo jensen huang want to change that. but any details about the blackwell chip deliveries is the reoccurring reiteration. back in november, jensen huang promised more blackwell platforms than originally planned this quarter. we are looking for updates on those numbers. investors will be looking for a new variance from the blackwell family with more a.i. memory coming out later this year. whether the ruben project, the next iteration of the architecture set for 2026. there is a rumors attitude could come earlier. a.i. get the buzz, and gamers should pay attention. with the new graphics cards and the keynote there is also talk to nvidia jump into the a.i. pc processor market will put them in direct competition with qualcomm and intel. there is a lot of announcements i just went through but it could push nvidia against those two big concerns. and that was the blackwell delays and also there has been a lot of talk about competition from custom chipmakers like broad common. so look out for the keynote

tonight. also important would be the analyst q&a tomorrow afternoon. will get more details about the financial target around 3:30 p.m. eastern time. >> got it. with 4.6%, christina, thank you. our next guest that jensen huang will celebrate a great year, he will not get into any financial projections. until that is meeting is scheduled for tomorrow. we are joined with an entire rating, one of $35 target why are you still so cautious? >> well, nvidia is

>> are they still buying and buying and continuing to spend billions and billions of dollars and then benefits nvidia. his that is right. microsoft is given an indication that for the balance of their fiscal year that goes through june, they are going to keep buying these chips. if you listen carefully to what he said in a recent podcast, he also talked about the fact that he is no longer chip constraint. they are evaluating their cap ex going forward. as soon as july, he could say something along the lines of they have invested enough cap ex and beta centers. we may want to slow down the rate of investment or even just maintain it. since he is the largest customer of nvidia, that would be a signal to other customers

to do the same thing. that is what would be looking out for from the customers . but in terms of today, the news is going to be great. tomorrow they will have an analyst event and maybe they could give us something beyond this quarter. nvidia only gives guidance one quarter at a time. tomorrow they have an opportunity with a full-year guidance and longer-term. that is what we are going to be listening for. >> that is interesting. when you think along the lines from a customer, what are the phrases that will be looking for and listening for tonight? >> new applications, new success stories, new use cases. things that are actually creating value for customers. there is a lot of value created in a.i. for self driving cars for tesla, and better delivery from eta. but beyond that we need to see more companies like salesforce being successful with agent force. if salesforce accelerates this year based on delivering a new a.i. agents. we can see better visibility

justifying this incredible level of investment. we need to hear more about that tonight and over the next coming months to know that this investment is worthwhile and we have not been over investing. >> do you like any of the other chip names better at this point? >> well, in terms of the mega caps what we really like our amazon and mndot. already tremendous-value. and is selling more ads at higher prices. for meta. amazon building out this a.i. capacity to help everybody else develop their tools and applications. they're not getting much credit as microsoft. despite that aws is still the biggest cloud provider. and now the most advanced in terms of being able to deliver a.i. capabilities. we think those are two will outperform this year. and if you want to talk about

the derivative from mazon. amazon is using its own chips internally and they are using chips from broad cam in order to deliver those capabilities. we think that amazon is the one that is going to benefit this year for more and more companies trying to deliver a.i. capabilities. >> thank you, gil luria. that preview of the big speech. chips and of the only gains today it is a broad rally. also keeping on our eyes on gas and energy. freezing weather and snow storms across the united states boost demand. you are seeing pictures coming in from cincinnati, ohio getting pummeled. fresh developments of u.s. steel pick what investors need to know. we are back in a moment.

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 direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life

insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had planned. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. you founded your kayak company because you love the ocean. not spreadsheets... you need to hire. i need indeed. indeed you do. our matching platform lets you spend less time searching and more time connecting with candidates. visit indeed.com/hire

louis! okay everybody, that's lunch! (♪♪) mud mask? (♪♪) watching bitcoin today up 8% already for the month so far.

and above $100,000 continued to rally after dropping to close out the end of 2024. >> big news, u.s. steel is finally getting a lawsuit against the administration leading the move to merge was done purely for medical reasons. and not on the grounds of political security. they are looking to throw out his order and receive a new review on foreign assessment. on the merits of the deal for national security. they claim there were denied due process in this previous review. the companies are still determined to merge. they are also filing a separate suit today against the ceo cleveland cliffs. along with the president of the united steelworkers union over their actions to block the deal. claiming, in part, they are anti-competitive and racketeering activities illegally designed to prevent any part or requiring u.s. steel as part of an illegal cameron payne to monopolize domestic steel markets.

i can give you a bit more color on this. putting the sources that are familiar with u.s. steel, they are still fighting for this deal. they say the investments they have made guarantees a good future and that is why they are taking action. u.s. steel i am told is liquor focused on closing this transaction by the month of june. that is the end date. this is according to the sources familiar, biden violated the law to gain favor with the union. they are accusing that doing that for political purposes. they also claim that they have failed to do their job and they claim that the steel never presented risks to national security and in fact every former cabinet member or national security expert that has weighed in on this deal has said that it presents no risk to

national security. the company is right to fair procedures were violated. the fact not leave a doubt that biden made a decision in march that was about politics and was never about national security. cfius was a shame to reach that result. and in the second lawsuit that is even more choosy. it involves a competitor and they name names they are confusing cleveland cliffs of emerging murder to force these companies, cleveland cliffs and u.s. steel to merge. or if that was not going to happen, to off the chance for u.s. steel to compete by doing anti-competitive processes like purchasing the steel companies. they are firing back in a big way with the legal options. it is really their only option of keeping this deal potentially live and putting it into a new administration, a new review on the merits of nap. his the outcome is not going to be different. his not according to president elect donald trump previous statements. certainly on the matter where he has come out not in favor of the deal. however, if you look at the politics of this, you can see a

scenario perhaps. the president-elect would want to make a deal with the union and against the corruption of the biden administration at least that is what is being accused here of not favoring this deal. the bottom line is that mergers like this had to be made and determined by the government on the merits of national security. not only do they say it never happened because biden came out multiple times before the cfius review against the deal. cfius was fixed into not coming out with a conclusion. that was because of its members so they could punt it over to biden. >> it all kind of got wrapped up in the election rhetoric trying to win the most important estate. >> that was key and they also had a governor and senator that was against this deal, as well. if it got extremely politicized but i think the ultimate case from the company is that the japanese company, nippon has made concessions to mitigate any national security risks

for instance having a majority of u.s. board citizens on the board, so they have gone unanswered by this administration. it is also created a rift with the japan. the prime minister was quoted that they should explain if they have national security issues with japan. they are one of our closest allies. this one is not over yet and ats. steel is higher on chances th maybe they were able to revive the steel. 2024 was a terrible year but the staggering numbers that the short sellers lost when we return. you can also catch this hour of "squawk on the street" anytime, anywhere. this podcast is available on apple music and more. back in a moment.

welcome back to "squawk on the street". i have your cnbc update. lawyers for president elect donald trump are asking the judge to block the friday sentencing for his conviction in the hush money case. they argue sentencing should be put on hold until the appeals are resolved. the judge refused to toss out the verdict last week. but he does not plan to oppose any sentence that includes prison time. >> today is the last date to pay the respect to the late former president jimmy carter at the carter center in atlanta. he will be there until early tomorrow morning when his body will be taking to washington, d.c. before a national ceremony on thursday. he died at the age of 100. >> is likely to announce his resignation this morning according to several canadian news sources. they report that he will share the news in about 15 minutes at a news conference. he will stay on until a replacement is chosen to lead the liberal party. the country's next election is scheduled for october. that is the news, sara eisen ?

>> thank you, we will keep you posted when we get that about canada. nest egg leading the charge over one hour into trading. 1.8% which is pretty strong. we have more than what you are watching. >> in theory, tech is leading which is important but the big story is the tariff story. that is potentially court brought another coverage. remember that we want broader participation in the stuck market rally. sarah was mentioning the semi conductors leading at the top and that is the main story right now. of course we know what is going on with fox,. we mentioned foxconn at the top of the hour. and that is of course pushing the major indices around because of the importance of the semi conductors.

i think the tariff story is more important. remember there were reports that the trump administration could be planning to narrow the focus of the tariffs. perhaps we're not talking about 60% on china which is 25% on canada, mexico. perhaps we are talking about a targeted tariff. there are certain sectors that are reacting to this. for example, materials for example, aluminum manufacturers. those companies could be very vulnerable because a lot of the production occurs outside of the united states. century aluminum, kaiser, and other names like freeport, these are all moving very nicely. these are all moving on the tariff story or reports about the tariff story. elsewhere, take a look at the discount retailers. they are also very vulnerable because they have a beer reliance on imported goods. dollar tree, dollar general, five below, walmart and even some of the electronics manufacturers, best buy for example are also moving on. finally, the automotive companies and depending on who you talk to, 50 to 75% of these parts are assembled come from outside of the united states. they come from canada and other

parts that could be subject to high tariffs. we have some big automotive companies like general motors, ford and genuine parts. the high tariffs are one of the major risks for coming into 2025. we talked about this a couple of weeks ago. here are the big risks for 2025. high tariffs is right at the top, the federal reserve could make a mistake or changes in the a.i. story. but to the extent that the trump administration with high tariffs is an issue. that could be mitigating is a major plus for the stuck market and broadening out. this strong handoff for 2025 and 2024. we have the greek economy for gdp and record corporate profits coming up. we have record net profits that we talked about all of this in the last two weeks. now if you mitigate some of

these risks particularly tariffs to be much better potential outlook. i talked about how these undervalued sectors could get some love. look at these earning estimates for 2025. technology leaves at 21% but that is a p/e ratio of 30. healthcare is going to have the same growth and earnings has a 17. 30 versus 17. just two sectors but industrials have 20 or so. my point. if you go down the list, materials have a pe of 18 much below technology. they have respectable earnings growth. materials at 18% and consumer staples and energy are much lower estimates. energy is only at 14 because it is a lower earnings potential. my point about all of this is that tariff -- if the story is accurate to -- this s a major mitigation. >> the post report incorrectly states that this policy will be pared back. his i would go with the post. i am just saying to go with the

transactional nature. i look at the stuck market and why are they reacting this way. there reacting . his he has not backed off from his comments. >> we will see what goes on but aligns with the transitional nature of the trump administration. >> is a bit unpredictable, and weight. he is not even in office yet. >> all this will make some sense. this is what the industry wants to have happen. more targeted and more specific. his thank you. his turning to attack, it did crush the bears in 2024, costing tens of illions of losses for short sellers. kate, good morning. >> yes, so 2024 was difficult to dedicate the markets especially tech according to data. they were down about 15% for the year. that is about $180 billion in market to market losses not performing as badly as if they just short of the entire s&p. other indexes were up by 20%, more than 20% in some cases.

betting against mega cap was the worst idea that caused the steepest losses especially nvidia. as we described shorting last year and standing in front of a train in the chip made to causing an 80% on plan for the shorts. 29 building, tesla not far behind costing 60% losses followed by apple, and names like also costing. these always do not indicate fully bearish investors or sentiment. it is often used as a portfolio management tool to hedge by professional traders. it is also increasingly used by retail traders. the best thing to bet against, the biggest came from shorting intel, up by 80%. also moderna, amd and adobe were also some of the winners for the shorts. these are net of the cost to bar which is key. i can factor into how these wins and losses are calculated. there are also some names that had deeper losses and bigger gains. with the borrowing fees tend to

be more crowded names and it could erode some of the alpha. the winning strategy was o find a less crowded but also a deep decline back to you. >> what are the names that fit that last quarter you mentioned ? >> i would say one thing that stood out that you did not want to shorten -- you think it was up by 500%. micro strategies is an example that was really crowded to short. it is expensive. so did not make that much sense. there has been this move away from the highly shorted names because you can get on the wrong side of momentum. we were talking a few years ago more about the game stop and what happened to the short- sellers. many hedge funds got burned and

backed away. i would say the more under the radar names, intel seems obvious. but it was in the beginning and less expensive to short. and the names are also quite crowded but also more liquid. it makes it easier to get in and out of those traits. some interesting statistics. >> fascinating, and an active part of the market. ka rne tnkteooy,ha you. cisco to purchase, the analyst is going to join us next hour on money movers. also congestion pricing. it has officially arrived in new york city. the impact and the road ahead with a commissioner from the cities commission after a break.

new york city is experiencing its new rush-hour with congestion pricing. charging vehicles that enter and exit the manhattan central district. this was after months of opposition and roadblocks from new jersey lawmakers, as this is. joining us this morning is sarah kaufman, the commissioner for the tax commission. also a director of the nyu for transportation. sarah, thank you for your time this morning. obviously we mentioned some of the controversy leading up to today.

your thoughts about the policy and what type of data are you going to be looking in fact it is working? >> yes, thank you for having me. this policy is long awaited and long overdue. driving in lower manhattan is a premium, it is not something that you usually need to do. there are subways and city buses. the policy bears out in terms of transportation efficiency and economic value. right now, manhattan is a constant state of gridlock. the status is not tenable. it is hugely important that the policy takes hold. there will be an adjustment period. but people will acclimate to this new change. >> it is a very nice way of putting what is a pretty erroneous attack on new yorkers that live in downtown manhattan and people from new jersey that have to commute into the city. it seems highly unfair and also

arbitrary. >> well, it is unfair if there were not other options. but there are about 20 different supper lines that people can take with commuter rail services and buses. there are fairies and so many different ways that people can get around. this is not a rural area lacking sufficient transit. this is the densest concentration of public transit in the country. people have options, it is about making a choice to do so. this is a policy that is ahead. >> i'm sorry to interrupt but do you think it will improve congestion? people are paying because they had to commute. >> yes, and people will acclimate to. it will likely take a few months as it did in other cities that have implemented this previously. just like london, singapore and stockholm. people took a few months to

adjust the commuting habits. eventually, all of these places appreciated the reduction in gridlock. it is simply untenable right now, the amount of gridlock that we have. >> what you think is the more optimal outcome? as sarah suggests, drivers continue to pay he toll, feeding the subway or in fact congestion drops and the average driving speed rise. which would you rather see? >> both. we would like to see a reduction in traffic but there will still be enough to to fund improvements on the subway system, to fund the purchase of electric city buses. also to protect from coastal flooding which is happening more frequently now. in general, to improve transit services so people will benefit regardless of what mode they

choose to use. we will see an increase in traffic efficiency, buses will move faster. business deliveries and workers will have more reliable schedules. ideally, we will see the overall benefit of this program. >> it also faces some legal hurdles, new jersey 41. they have sued over the toll program and the united federation of teachers is very key, politically. they are in court to stop it. manhattan residents are trying to sue. also president elect donald trump is against it. i wonder how you are going to deal with all of those complaints and legal push backs? >> well, at this point it is in effect. the congestion charge is currently occurring. today is the first weekday of it. these lawsuits will be have to taken to federal court which the president and the other parties are welcome to do when president elect donald trump is

in office. sometimes, new policies can be unpopular. but in the end, people will acclimate to enjoin them. >> finally coming to such a local story for the viewers that might not live in new york. i wonder how much of a test case you think for other major urban areas in this country. as you are, some success in europe and asia. >> yes, other cities in the united states that deal with their own congestion prices will see what happened in new york. cities like chicago, and washington, d.c. have similarly tough traffic situations in downtown. they will be watching closely to what happens here in new york. >> do we have the functioning public transportation system? some of the other places you cited in other 60s have other better performing public transportation.

>> we have 24/7 subway surface which is unusual in the country in the world. overall, we do have very reliable subway surface and city bus surface, as well. but obviously the purpose of this program is in part to improve subway services. so we do not have things like signal problems that impact the system and impact people's rush- hour commutes. >> anybody who takes the subway every day knows exactly what those signal problems can mean. commissioner, we appreciate it very much and we are watching very closely how this coats rolled out. thank you very much. >> thank you. american airlines gets two upgrades to purchase today. that said, jeffries is their favorite, united this new timeline on it starling partnership. we will talk about what that means for this stuck after the break.

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all orpr

cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

united airlines with an update on the starling. we have some details this morning, good morning, phil.

>> good morning, carl. they are accelerating the appointment. it is going to start to this quarter, they will have their first commercial flight. let me explain the accelerated timeline. for those looking for new way to in-flight connectivity on united airlines. they will start with the first commercial surface this quarter. they are testing it this month on all regional planes that fly for the notable habit this year. mainline surface will start later this year. and over the next year and a half or so, they will put it on the entire fleet. it is going to be free for mileage plus members. the idea with more than 40 million members is 4092 and even more members again for those members to have better in- flight surface. that is a big part of what

united and all the airlines are going to be pushing for for the next one year or so. the current fee is eight to 10 dollars but is going to be free if you are a mileage plus member. again they are accelerating this deployment. take a look at the shares. they are reporting their q 4 on january 21st. also take a look at shares of delta. why are we showing you delta? they will be the first to risk port results. we will hear from them on friday. the idea is that what we are seeing from united is a definitive statement. it realizes that in-flight connect family is huge. the system they have right now, some of it is through panasonic or a number of other providers. they believe they can go better by going completely to starlink. that will happen this quarter and accelerate over the next year and a half to two years. >> what are the mother - the other airlines using at this point and how competitive is that wi-fi deal with the airlines? >> it is competitive, and starlink is already with hawaiian airlines united is adding them but i would not be surprised if there are others, as well. it is a hodgepodge of different services, depending on the airline and he aircraft. they are using various in-

flight connectivity services. >> phil, maybe we'll talk about this american upgrade later. and meanwhile, even study on and meanwhile, even study on thats easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment what would be tariffs. the dow is up by 262. the s&p 500, the best back to back days since the beginning of november. "money movers" begins after this . easy-to-use tools power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

and can you see a number in the circle? seventy-nine ninety-five. want to try again? seventy-nine ninety-five. i think you might be color blind. i think you're missing the point — hummm. right. okay. now follow my finger without turning your head. uhumm. no, just follow with your eyes. —uhumm. —okay. i don't think you understand what i'm asking. i don't think you know how owls work. get two pairs of glasses and an eye exam for just $79.95 or two pairs of progressives and an exam for $149.95 at america's best. ♪♪ you'll get better

when you're not blamed for a condition you can't control. ♪♪ you'll get better when your pain isn't minimized, dismissed, forgotten. we will never stop trying to get better. because when medicine gets better, all of us can get better. ♪♪

good monday morning. welcome to "money movers." today stocks rebound, led by tech. nvidia heading towards record territory. s & p and nasdaq up big today. >> mike johnson lays out wishes for one bill. >> and canadian prime minister justin trudeau is expected to