♪ good morning, welcome to squawk box here on cnbc. we are live from the nasdaq marketplace. welcome back. we are all three together for the first time in a while. for his first time we are together this year. happy new year. to curb your enthusiasm. it is just too late. except for that yesterday was the first week back for everybody. for i think the third is too late, according to him. when anybody says it to him, he does not just say whatever. is for i said that larry david

would not approve of us saying happy new year at this point. we are looking at u.s. equity futures. we will see modest advances. there are not big moves. the dow futures are up by 30 points. nasdaq is up 27 points. the s&p is up 7.5 point after the s&p 500 and the nasdaq closed higher yesterday. we had two days in a row of it being up. we are in the new year. it is still very early. here are the major averages so far. the dow, at this point, is up by 0.4%. and nasdaq is up by 2.9%. that is not bad gains when you think about how hated the rally is at this point. so many people are waiting for the pullback thinking we are at very high price-earnings ratios. will wait to see what comes next. treasury yields have continued to climb. the 10 year is that 4.64.

and the ten year close of the highest level since november 2023. bitcoin is training back above 100,000. we have $101,350. shares of the tents and holdings in china fell 8% overnight after the company was added to a list of chinese military companies by the u.s. department of defense. it is a that included on the list, it was a mistake. they said it is not a military company or a supplier. this is the listing has no impact on its business. another company added to the list, was see atl, part of the supply change for automaker including ford and tesla. the shares fell as much is 5.6% but did close net down about 2.8%. they said the inclusion on the list is also a mistake. it is not engaged in any military related activities. >> it does not take much. and does not take much to find

your way into militaries. i'm sure was not totally arbitrary. >> the bigger questions come back that have been raised tik tok. if you are a chinese company, they can say all chinese companies are engaged in military. if you're coming in and being part of the supply chain when it comes to automobiles are finding way to consumers, those be the questions asked. for this is the new way of looking at things. business is war and war is business. specifically, going into high- performance, you know, bombers or something. the ceo of japan, nippon steele says you're not giving up. they block the proposed merger. they do remain confident that the deal was the best path forward to secure the future of

u.s. steel. nippon steel ceo says there is no need to give up on the take over and he is not considering an alternative plan aside from the current pursuit. the canadian prime minister said that you will step down in the coming months. he plans to stay on until his replacement has been chosen through a nationwide party election. for i truly feel that removing the contention around my own continued leadership is an opportunity to bring the temperature down. >> he will step aside from the party saying he has not been able to bring the party together and is trying to make room for this in an election in a few months. for he did suspend the gridlock parliament through march 24. the u.s. dollar is up about 5% against the canadian loonie

over the last three months. a little later in the show, we will speak to bruce heyman, the u.s. ambassador to canada. mark carney, the former bank men head is thinking of getting into this and throwing his hat in the ring as well. to you have a currency named the loonie, let's start there. [ laughter ]>> there is the story. people in wall street focus on it, the feds top banking regulator, michael barr, city would depart as vice chair of supervision on february 28. that is unless the successors confirmed earlier. he plans to serve as a member of the feds board of governors. if he is not off the board, but the move avoids what was probably going to be a big battle with president-elect trump. he said he did believe that such a battle would damage the feds mission. he has been a key figure in negotiations on what was a proposal for the large banks to

hold more capital to protect against losses and a financial crisis. the banks did not always love him. banking groups have lobbied against that proposal. it was proposal as to what would happen next. this does take off the table for now, some kind of bigger conversation the could argue that maybe this is a conversation with independence of the fed. >> i understand why he would not do it. when you have had questions about whether an incoming president would want to keep on the head of the federal reserve, the chairman himself, you don't want this battle playing out on the lower level. what we have heard time and time again from the head of the fed is that look, i am not leaving. i will stay through the end of my term. >> you believe this is a politicized situation? if it is, is that a problem? to regulation is going down for banks. that is i is then. is looking at lawsuits about stress test and things are going down and he is up here.

he's like just go. >> the bank index took off right after the election. the financials played out. >> the world is getting crazier, or getting back to normal. meta added three new directors, including the ufc chief executive, dana white. there was a high profile campaign for president-elect trump. they also added charlie summers, the former microsoft executive. they also have mark zuckerberg to sing the addition of the board members would add a depth of expertise and perspective. that's one way of putting it, that would help attack the massive opportunities ahead with a.i. in the future of connection. last week, we have the other appointment with nick being gone, bringing in a republican. is for republican is already

there, this will raises profile. >> dana white, don't forget, mark zuckerberg is a huge fan of mixed martial arts and practices that. he has been friends with dana white for a while. >> dana white will definitely have a different perspective than you would normally think of for facebook. >> elkin gives a different perspective in europe. >> you have resolutions? >> resolutions for the new year? for i thought we were past that. for me not to say happy new year, but we are llowed resolutions. that's in the same category. >> yes. you have to get that the day of or the day after? >> you already abandon them? >> no. >> on thing if you're still sticking with something, is there anything? i have a birthday at the same time. i have to reevaluate all kinds of things. >> i took a note to wish you

happy birthday. that is as far as my resolutions were going for the year. i'm six days in. >> you are a guy, on important days, you have a list of 5000 people to get a note from you and they are all stupid enough to think that you got of them. i know that you know how to do that. i don't, do it individually and personally. i think your birthdays in your thing where they get sent out automatically, is that not true? >> that is not true. >> you have no resolutions about a do things differently? as to of course. you to come into the new year focusing on your health and getting better sleep. i do not drink. >> do the portion, eat half of what you would epa get all the same things, but instead of a slab of ribs for birthday, how about half a slab? that's on the resolution i was

thinking about come in terms of you, in terms of you and us, let's say us, this is us, i think there are things like dana white, you probably think that is bad thing. certain times, or like di mcdonald's, we might have an argument about that, i'm not going to argue with you about that. i will respect you and your opinion. >> these are my new year's resolutions. for he was trying to create a moment to tell us about his. >> i'm trying to tell you about my so that you could adopt some of them to make my life easier. >> i doctor those a long time ago.[ laughter ] >> this is the right way to start the new year. happy new year. for you're not supposed to say that. coming up, we will talk

strategy about the trading day with the futures and will take a look at this right now. the dow is up 60 points. nasdaq is up 14 and the s&p 500 is up. we have an exit interview with the ftc chair, lina khan. we will talk about the olitics of it and what it has meant for business and her what she thinks of everything that has happened since. i haven't that 8:30 eastern time here on squawk. do not go anywhere.

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welcome back. the next guest says the bull market is intact, but certain markets. it is good to talk to him. that kind of message, i don't know. paul is here, the cofounder of the spoken investment group. as for wow, what a welcome. >> is one thing to say could be good, but we have so we are concerned about. what is on your list? >> we are optimistic about the market. you also to be realistic. we've had two big years of gains. when you look historically, you look at periods when the bull market reaches it second year. historically alas about 5 years, but the 30 years weaker than average. we talked on christmas eve about how the s&p was above the

200 day moving average. that's only happened a few other times. average returns were half the historical average. we had over 50 new highs last year. in prior years, six other years, 4 years we were down. these are things to be aware of. overall, the factors of a.i. , what is going on in washington, and the rotting -- broadening economy, don't think we'll see another 20% year. >> i do understand all the arguments, and where we are along the lines, everybody seems to be thinking the same thing right now, that we cannot possibly have another year like last year. as for everybody talked about how the first few days of the year would be weak because he worsening i gains. we are up 1.5%. historically, that has been a relatively good omen. you have to have some balance.

when it comes to washington, it is interesting when you look at what is going on. all we hear about is uncertainty there is an uncertainty that. there is always uncertainty in the markets. we are all aware of that. in the last several weeks of the year, people started to underestimate the potential positives of the new administration. what you saw on the continuing resolution was passed, and you saw mike johnson get reelected as a speaker on the first ballot, the market with two of the best days since the election were those days. maybe the markets are underestimating what can get done going forward, as far as less of the regulatory burden and lower taxes. that could be a positive surprise going forward. >> are you still in the double digits at the end of this year, or we are up? if not double digits? >> i think we will be up, but i don't think it will be like the last 2 years. i'm not be surprised if we were

down 5% or up 5%. nothing surprises me these days. the alternatives to the stock market are weaker. for that is the question. for we stay invested we are reining in expectations. >> are fully invested were waiting for something to happen see keep cash on the silent? is that number regarding more? >> where we are, we are still invested in our positions. we have not been raising a lot of cash. we are starting to diversify from the growth oriented sectors of the market to more cyclical and a value where he markets. to give me examples. as for in the industrial sector, you will see, if you see less of the regulatory burden, some of the big projects, you will see these companies benefiting from that. the higher interest rates that we have seen in december were a

factor behind the 10% decline. long-term, we think industrial sector will do well going forward. >> anything you would not touch? >> energy is a tough sector. the economy is doing really well and oil has rallied a little bit, but it is well off its highs. you went back to the first administration, was the worst performing sector, even though he was one of the friendliest residents. drill baby drill will mean more oil on the market. to thank you for coming in. when we come back, mcdonald's is the latest company to overhaul is di program. we'll talk about those changes, next. new hampshire governor will join us seont as his term as governor comes to an end. squawk box will be right back.

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mcdonald's is making changes to is approach to diversity, equity, and inclusion. the company that will no longer set in his words, aspirational representational goals. it will instead continue to embed inclusion practices into its day-to-day business. it will retire a dei pledge in its supply chain . that the global inclusion team. robbie starbuck said he had contacts with mcdonald's to ask about the diversity programs but did not get a response.

after mcdonald's announcement yesterday, starbucks claimed victory in a post on ex. right also the changes were under consideration over recent months and were the result of a variety of factors. >> exxon mobil is suing california attorney general, several environmental groups, accusing them of defaming and disparaging the oil giants advanced plastics recycling initiatives. they did sue x unless you're saying the company engaged in decades long discussion about the limitations of recycling. you may remember, if you watch the show, he came on here to announce that lawsuit going against them and gave out his reasons for doing this. they were blaming exxon mobil for lying, in his words home about what happened with recycling program. >> darren was, the ceo at exxon mobil has been very outspoken, pushing back about any of the critics that have taken them

on, whether that is climate change were shareholders that only share that. as for them was a classic interview. this was exposed by you very well. the idea that, if it was not purely recycled into compost, then it didn't count. turning into jet fuel did not count as an effective use of it . i said, how to get here from california? he's like you want me to walk? you know what i'm saying, you do understand the hypocrisy and what you are saying, don't look at me like you don't understand. this is satisfying. i am violating all of my rules. on the other side of this break, what time is it? >> it's been 25 minutes. we have the highlights with

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good morning. welcome back to squawk box. we are live from the nasdaq marketplace in times square. the futures are up once again. dow futures are indicated up by 76. the dow did close lower the bow. the s&p 500 and the nasdaq were up for the second day in a row. they are indicated higher with the s&p up by 8 points. nasdaq is up by 20. the ulta ceo will be replaced by the commission chief operating officer. she has been there for more than a decade and became the coo in 2023. along with the executive announcements, ulta raised the fourth-quarter outlook due to stronger than expected

performance during the holiday season. the shares are up by 1%. if you are looking over the last three months, it is up by 18%. the nvidia ceo gave the keynote address in las vegas showing a.i. chips. do they have a new name yet? are they black well? >> that is not new. for i know that is not new, but do they have another one? as for the next one was ruben. he did pivot away from the data centers. gaming is back in the spotlight. they are going back to their roots. the ceo unveiled the breakthrough gaming chips built on the blackwell architecture for the a.i. data centers. the new geforce rtx 50 series uses a.i. to enhance everything from graphics to character facial details. you can impair the price from $550-$2000 using micron memory. here he is now. for you get this incredible

graphics card. we will fit it and put it in there. does that make any sense? well, you can do that with artificial intelligence. >> u.s. 20 gray jacket. he is looking at the only person showing physical a.i. . these are tools that computers can simulate any environment in real-time. that is bringing automation to warehouses. he said there will be digital twins. you could have a replica of your warehouse online you can move things around to make it more efficient. he said it would boost humanoid robots. he talked about driver assistantships and software for the auto space. toyota would be one of the newest ones to include the operating system. as for this business, for us, notice in just a few of these cars are starting to ramp up into the world, our business is $4 billion. this year, we are on a run rate

of $5 billion. we have significant business already. this will be very large. >> that a partnership with uber. tesla and google fall into the mix. investors bought into the hype with the shares story to an all- time high. the stock will see if johnson -- jensen met the market expectations. >> it looks like he did. i guess we should have known. if you can, in a game, have all of that expression on the characters and everything, it has become so real, that is all a.i. >> it is rendering in real- time. if you want to change your character and go from a man to a woman in real-time, or change the environment, i am not a gamer, but i am speaking from watching the videos, it is incredible we can do. that is how they got where they are as the first adopter of

a.i. >> gaming is a relatively small business for them now. it is $10 billion-$11 billion. that's amazing that it is a small business. it is less than the $100 billion. >> it is 80% of total revenues for the data centers. that is the focus for wall street. that somebody talked about yesterday, given that it is ces. for the programmers that are writing for the stuff are big on. >> there is an analyst meeting this afternoon. that is when they will get questions about rockwell shipment and the rollout going from hopper to blackwell. that the new gpu iteration and so forth for the next ruben. you will get questions like that. that is when you will see the reports. >> is like what he was sorry about last night was similar to the internet of things. the internet put out into the real world, this is like the a.i. of things, that is what i took

away from it. >> yes, he covered so many facets. he talked about home appliances being connected, but this is the next level when you are simulating entire environments in the workforce. he said if companies don't put forth that digital twin, which is replicating your warehouse, you will be behind the curve. he talked about the a.i. supercomputers and how driverless cars are going to be able to see any type of scenario in front of them in real-time and react. it is incredible what they can do with this type of technology. it all stems from the gaming chips that is at their core. all right, thank you. we have breaking news, a big deal in the image space. what i mean images timing photos, pictures, video. shutter stock is announcing they entered into a definitive agreement to combine in a merger valued at $3.7 billion.

the merger will produce cost energies between $150 million and $200 million by the third year. the company will operate as a getty images holdings and will trade under this ticker symbol. it is an interesting deal. the other thing that is happening is they have a number of a.i. companies that want to license photos to try to capture the value of those. here is a question, i wonder how regulators will think about this. there are very few photo archives like this anymore. this is a very unusual and specific archive. it is less than the creative side. there are a number of creative websites, yet still images of all sorts of things that are used in b roll on tv, things like that. the archive of news images is actually super unique and does not really exist anywhere else

in the same way that others did. that will be an interesting one to watch for us in the news business. as for what was the deal yesterday? there was a $4.5 billion deal with steve mcmillan, the former stryker guy. for when you talk to lina khan later , do you think it's any coincidence that there is a deal after deal? i imagine there will be a deal announced every day. yes, i think we will see a lot of deals to these are small, but there are many things waiting in the wings. the timing is such that, because there is the new regulatory regime coming in, you will see deal after deal. for this particular deal is not in that category, but there will be very much more. coming up, we will began to present a lecture trumps tariff plan.

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welcome back. president-elect trump has denied reports that his incoming administration would be exploring a terror plan only covering critical imports. incoming president took to truth social to say that destroying the washington post, quoting anonymous sources, which don't exist, incorrectly stated my tariff policy will be here back. that is wrong. joining us now to talk about tariff options for the incoming administration is a former white house council of economic advisors and the senior trade economist, christine mcdaniel. she is a fellow at the mercator center. we now have the wiley

rein security chair. i would give you first crack. there was a store in the washington post, suggesting this would not be brought tariffs that they would be more targeted. it would be every country, but it would be targeted at issues that are important to the economy or national security. the incoming president himself pushed back against that. what does it mean? what does that mean for global trade? >> good morning, good to be with you. president trump had stated that america needs to impose global tariffs to correct a widespread distortion in the markets. these are distortions that stem from china that have destroyed prices across the global market. absolutely, this is not a sector specific approach. china's distortions and he impact in the market have been so widespread that global

tariffs are absolutely warranted. the president will pursue widespread, global tariffs on imported goods. there are a number of legal authorities that he can use to impose them. all tariffs will be want to correct for trade distortions and will be appropriate under the law. >> do you believe that this is something that will be implemented as such? is this something that will be used to negotiate better situations on a country by country, or industry basis? >> i have that question a lot. the purpose of the tariffs are to correct for distortions. the goal of tariffs is not to keep them on goods indefinitely. is to impose them to correct for distortions. once the trading partners decide to eliminate harmful trade practices, we want free trade, but the trump administration was fair trade. the imposition of tariffs

correct for distortions. was trading partners decide to remove distortions, the tariffs can be removed. it is a negotiating tool. the premises to correct for distortions and compel the imposition of tariffs for the trading partners to remove the trading practices and make the economy star. our economy is being weekend because the trading partners are taking advantage of the u.s. is pre-borders to distort in the u.s. market and the global market. >> that sounds like a perfectly reasonable argument to come through. in reality, there are questions about whether it can be done that easily and other countries will go along and say you are right, this is not right, and we will change things. what you think? >> hold on just a second, i don't think we are hearing your audio. and we double checked. >> you are right, we have distortions, we visited abroad

that others don't is here to the extent, president trump can use a variety of policies and tools, including tariffs to correct for that, that would be great. one hing that president trump did campaign on his lowering inflation. tariffs will make it harder to do that. it will be that much more important to cut government spending, physical discipline, boosting productivity and an energy abundant policy as he has also talked about. can be used as a negotiating tool? yes. does it work? sometimes, yes, as we have seen in the past, especially with president trump and japan in agriculture. it can lead to retaliation. it could work, and it could lead to a global trade war.

there are distortions out there that we do need to address. >> yes. for market watching this closely and business leaders watching this closely, the question becomes, how far will this be pushed? how far is this a hill that the administration is willing to die on? if it comes back in the form of much higher inflation. if it starts pressuring that. i will ask you first, is there a point where we say we are more concerned about making sure americans are not paying a lot more than making sure everything works out fairly? >> that is a fair question. i have been doing trade policy and tariffs for 25 years, right? what we often see, and more and more again, when you put tariffs, and makes the domestic industry stronger. not only on shore with domestic manufacturing, but it increases wages. the idea that we will just have

inflation by this imposition does not take into account the reality that wages will increase. yes, will goods be more expensive? potentially, but the rising prices is the effect of correcting for distortions. people get more money so they can pay for price increases. the other thing i want to underscore, in the first trump administration when i surf, when we about tariffs, we did not have that level of retaliation. the trade commission did a study, they noted that the effect of inflation from the first-term tariffs were infinitesimal, if anything at all. we also saw that the trading partners did not retaliate. they got into trading agreements with the united states to remove the distortions and tariffs on steel and aluminum.:compel countries to impose their own measures to protect themselves from china's overcapacity apple

exports from the united states where they were flooding the united states due to the secondary effects of overcapacity in china. what we see over and over again are increase wages, no inflation, and corrections i trading partners to remove trade distortions that are hurting the u.s. economy. need to look no further than the trump administration to see how that will play out once again. finally, i will add, and the first of administration, the imposed tax cuts to offset the initial shock to the markets of the imposition of tariffs, he has talked about tax cuts again. i think that will be forthcoming to help the transition period the administration imposes more tariffs. for no question, we don't want dumping here when it comes to steel and automobiles. we don't want dumping from subsidized industries coming here and disrupting things. there is an entire school thought that if you rotect yourself from competition with

other countries, companies will not be as lean or as efficient as they could be or should be otherwise. you also ave the issue of thinking that we can push our partners on things, but maybe your trading partners on things, but if we are picking an america first, nationalistic view on every single issue, digging in the case of japan, where we had very good things that we have that we worked out with japan last time with agriculture and working on the tariffs, now we are telling japan that nippon steel cannot come here and invest in a u.s. company and spend money here. is there a point where there is a little bit too much pushing the goes on? do you think this makes for better deals? >> there is always there. first of all, tariffs to raise prices to what extent is

questionable. especially for the downstream industries. we cannot just brush that off. the idc study, and others definitely showed the price increases. it was not disastrous. that said, can it be used as a tool for reciprocity, yes. in some cases, president trump to that in agriculture. look, there is no perfect world. hopefully we will get closer to that over the next 3 years. whether or not we will ever get to a -for-tat or one-for-one reciprocity , you don't want to hold out for that until the very end, and then you do yourself in. you get the situation where you close yourself off to competition, like the deal with

nippon steel, do not think that is over yet. it was an interesting potential opportunity for u.s. steel to get an injection of capital and technology and managerial expertise that could help them to be sustainable moving forward. if tariffs work, the steel industry would be booming right now. they have had decades and decades of a lot of tear production and a lot of variety of other protection from import competition. if tariffs works, we wouldn't have the declining steel industry. keep that in mind. will the tariffs be disastrous? probably not. they will not be without cost. they do help to save some jobs in those protective factors. everybody else that buys those goods have to pay higher

prices. it is not a free lunch. it never is. trump says he wants reciprocity and trade relationships, that could be a very good outcome. we will need good negotiators to make sure that happens and it doesn't end up in a global trade war. for it is a nuanced situation. >> we have over 100 years of tear falls in the united states. with thousands of instances where the u.s. imposed tariffs to correct for distortions. this notion that trump will come in and do things willy- nilly and imposed tariffs, creating market disruptions, it ignores entire history and experience that the u.s. has, the positive experience with the imposition of tariffs to correct for distortions and make industries healthier. >> i think the market took solace. i think the market took solace in the washington post story thinking this would be targeted and thought through,

when incoming president trump said that was all wrong, those on the case, you raise a lot f questions about what happens. we want to have you back, frequently to talk about this. we are all trying to suss this out. i appreciate having both of you on today. we want to thank you both for being here. >> thank you. coming up, do not miss the exit interview with ntc chair, lina khan, at 8:30 eastern time. it is only on squawk box. we have so many questions about the last 4 years and what it has meant for business. we are looking at where all of this has after she leaves.

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coming up we will talk about the changes at boeing over the last year. it has been a year since the door blow blowout on an alaska flight. squawk box is coming right back.

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people say to me, "barbara, you don't miss a beat." prevagen. at stores everywhere without a prescription. it is just before 7:00 a.m. on the east coast. you are watching "squawk box" here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. china's tencent falling overnight in hong kong after the company was added to the black list companies in the u.s. tencent says the inclusion on the list is a mistake. it is not a military company or

supplier and has no impact on the business. in the meantime, meta is adding dana white to the board. mark zuckerberg developed a relationship with white in recent years and interest in mixed martial arts. meta donated $1 million to the trump inauguration fund. and talks with 45,000 dock workers set to resume today. they want to drop concessions on automation to load and unload containers on ships arguing they pose a threat to jobs. so, debate of jobs and technology at the center here. >> it raises questions about the 67% raise they had before and if they get that raise, i don't think they would have that raise if they don't have automation that comes in. a lot of moving pieces and you have eight days until that strike would take place. it's half of the ports in the

country. take a look at the futures this morning. rite right now, the dow and s&p are up. the nasdaq has taken a step lower down y 15 points right now. not a huge decline, but it has reversed course this morning. let's get to dom chu with the pre- pre-market movers. >> good morning, becky and andrew and joe. nvidia shares climbing higher. the valuable company and ceo jensen huang took the stage at ces. he introduced the next gen chip and autonomous driving technology and omniverse products for a.i. which is a multitrillion dollar shares. walmart shares moving higher as bernstein named it a top pick in 2025. it is an expensive stock on

valuation basis, walmart still has room to run as it continues to glow row the ecommerce busin in the u.s. walmart shares up fractionally. and robinhood is upgraded to neutral from underweight. record's user base is attractive, but products and assets shrink in comparison to competitors and maybe a bit of room to run to the upside. for that and other analyst calls of the day, go to cnbc.com/pro for the big calls and stories of the day. becky, back to you guys. dom, thank you. see you in a little bit. it has been a year since the door plug blowout from the boeing 737 max 9 which was operated by alaska airlines.

rob epstein is joining us. it's an odd anniversary to be celebrating. i guess it's an excuse for us to talk to you, ron. i'm sure boeing doesn't want to celebrate this anniversary that it's been a year. let's look back. there have been -- there has been a response to that. that seemed like it wasn't the only thing that happened. maybe it was the straw that broke the camel's back or maybe not. what progress has been made by boeing since then? >> when you think about what's going on at boeing, they got a new ceo. kelly ortberg is in the process of bringing in new talent, executive talent. when you think about boeing, longer term and shorter term, longer term, what's on investors' minds is one, changing the culture, two, fixing the production and innovation. one of the things we're watching around culture is boeing defense

right now has an interim leader and doing a search for boeing defense. let's see who they hire. that might be a strong indicator how culture change is at the company. shorter term, investors are thinking about and this happened the past two years, do we want to be long airplane producers or parts producers. the long bet was airplane producers, but parts producers won that. that debate is going on in the market. we are hosting the bank of america forum where we talk about supply chain issues and do you want to be long the airplane makers or parts makers. >> the culture change proceeded the guy ortberg replaced. the culture issues you talked about that need changing. this is a decade at least. so re all of the problems. how long the problems go back?

the software? >> if you go back 2019. culture won't change overnight. there's no way it will. >> talk about changing culture. >> for sure. for sure. >> that was just the most recent total fiasco, the door plug. what's -- you think it's over in terms of shoes dropping? it was a ipede. centipede. >> the door wasn't bolted on. the faa is inn expecting them closer. this gets back to the stableation of the production process. we watch closely what's going on there. our hope and expectation is they will stabilize at a lower production rate. we are forecasting this year they will deliver on acknowledge off the production line about 31 airplanes. we row are hoping to end the ye

with 38. that's something we watch closely. the faa is looking for quality. it gets back to quality management on the production system. that all gets back to culture. that doesn't change overnight. we don't expect to change overnight. this is stuff that's gone back over the last 15 or 20 years. i would expect to take five or ten years to change. >> i guess boeing's been able to live off its phenomenal reputation and, you know, known for quality for how many years? how long has the company been in business? >> over 100 years. >> with all of the issues we talked about. the jets we think about. we wouldn't get on them if we didn't think they were safe. they are. you talk about one in 8 million. still too many when you are talking about that. you think the culture is changing. you think ortberg is the right person? >> we are seeing changes in the right direction.

it's early innings. >> it's still early? >> yeah. >> unbelievable. five or six or seven years. >> ortberg has only been there a year. not even a year. it is still early days. for the market to make judgment on him is too soon. >> the stock topped out at 400? >> yeah. airbus would have delivered 770 airplanes. boeing only delivered 340. part of that is the um impact the strike and. you have other producers out there saying it is time to jump in. >> who is the third competitor? >> brazil. you have other startup companies like jet zero looking at blended wing bodies with a different configuration. >> that is the game changer to no longer have a poly.

>> chinese. >> you don't want to sell tencent for gaming. >> the chinese market is a large aircraft market. that's 300 to 400 airplanes a year. if they supply to themselves, that is the demand for aircraft for boeing. >> ron. >> fascinating. >> it is. normally -- you know, i like a bunch of safe jets. airbus. they're nice. >> they're all safe. >> go airbus. give us a bunch of jets. we need to go places. >> go boeing. >> that's what i'm saying. usually i say i don't like seeing airbus deliver twice and many jets as boeing. somebody has to do it and they're beautiful planes and quality somehow from france. coming up, will adding crypto to your 401(k) help boost

returns for 2025? we will look at maximizing your retirement plan. in the 8:00 hour, interview with outgoing ftc president lina khan. "squawk box" is coming right back.

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the futures right now, as you can see, a little bit of green. see how long that lost on the markets and what options are saying, let's bring in amy wu silverman at rbc capital markets. we don't want it to be obvious. it is, but it's so important and it's the beginning of the year. seasonality plays a big part in

how options behave and how markets behave. >> it totally does. i agree. it feels obvious, but it doesn't end up what happens. joe, when you just look seasonally the last 5, 10, 15, 20 years, january is not a good month with vix rises and market selloffs. i like to joke it has a little bit to do with new year's resolutions. the portfolio managers will say we will be more disciplined and cautious and three months later, fomo kicks in. not as much as a sanguine outlook. >> i tried to talk about resolutions at the beginning of the show. no one wanted to talk about them. you are bringing them up which affects trading because even market participants in the way they trade, they start the year and it lasts how long? ten days? i think -- >> the same as the average diet

or exercise plan. >> if you look it up where people give up on their new year's resolutions. you do point out that the risk has not been a market selloff, but missing out on upside. that's the way it has been. is that the way it's going to be? >> so, every year, we get another 20% rally in the s&p. i would say the baseline makes that a little bit tougher. i wouldn't count it out. one thing post-covid is the right-tail risk has been just as serious as the left-tail risk. you throw into this year, the deregulation potentially around cryptocurrency and financial regulation and i think if you look at the consensus narrative right now among derivative strategists, volatility is too low. i'm not saying i disagree with that. i'm saying we have to continue to pay attention to the right

tail because when that spirals, you get the volatility up just like in 2023 and just like 2024. to me, those odds are structurally different now than they were pre-covid. >> quitters day is coming up this friday. second friday in january where people traditionally give up or most frequently because they haven't thought through the longer term implications. i can do this for a week or two. >> options traders, too. >> we will see that in earnings season. the benchmark fomo need to participate starts to overweigh the valuation discipline. one big theme everybody is talking about the market breadth widening. we are still suffering through the paddling duck. so, that index level volatility continues to look calm and your

vix isn't signaling much, but you throw donald trump into the mix and the changes in fiscal policy and i think that dispersion will impact the market. >> mergers and cquisitions are probably going to be back. you say at this point it's not priced in the options market. why not? why is this not priced in? should it be? is the option market right and it shouldn't be? >> i think this is one of the most interesting opportunities in options and one of the reasons i think it hasn't been priced in is the last time you saw a big m&a wave was 2010. it is like the wheels are rusty for those who haven't gotten on the bike in a long time t. time. it isn't the themes every year. had a down side looks to the upside. neither is pricing in any wave

of m&a. we have been talking about it for a while. you can use the options strategy to potentially play m&a. >> it's coming? >> it's not priced in, but if it does come, that's the opportunity to use leverage. >> let's go back so i understand it a little bit better. the divergence between the volatility in equities versus rates. can you explain that to me so i understand it better? >> yeah, so, when you look at all different instruments, you have treasury volatility and you can use the equity volatility for that. we measure the ratios of those divergence. meaning, when you see equity volatility pretty sanguine, but rates volatility is high, we're talking about the same market. somebody is right and somebody is wrong. one of the reasons we like to use those cross asset metrics is you could argue rates is driving

everything. rates isn't just driving the rates market. rates is driving every single market. the big question is why is the rates market saying there's more volatility uncertainty ahead relative to the equity market. when you back test that over time, someone is right and someone is wrong. it is not always the rate market is right, but usually the divergence falls in the next few weeks. >> if it is right, it is setting us up for something scary in equities. >> i would say that is the common narrative for the derivative strategists say watch the down side and potentially put on trades proper on texting your down side. you are starting to see that divergence red flag signals we didn't get through last half of last year. >> the rates volatility has been rates moving higher. it's not like it's just been down, up, down, up.

it has been up, up, up since the first cut at 50 basis points. >> the one thing our interest rate strategists has been saying and we talked about this st time is one of the common mispricings is not necessarily what the next cut is going to be, but how short and shallow that will be. if it is wrong, it is just the terminal that's higher that the differential is priced into more volatilities than it is in equity volatility. now, again, you have this problem with the mag seven being a big proportion of the equity market that that tends to kind of influence everything and we don't get a clear signal. >> okay. hurts my head. amy, thank you. no, i like it. i always like it. i always like it. new year'syear's resolution is understand it. i'll give it up on friday. coming up, a cnbc

investigation into what happens when the silicon valley dream of big payouts for early investors doesn't pan out. later, the implications of tariffs and trades with our friends to the north when prime minister justin trudeau steps down later this year. "squawk box" will be right back. >> announcer: time for the aflac triaueioiv qstn. which president is on the $2 bill? the answer when "squawk box" returns. agh! cut! this gap! it's just too big. bring on the double! aflac! after my hospital stay, aflac helped close the gap by paying me cash for expenses health insurance didn't cover. nothing covers gaps better than the aflac duck. aflaaaaac! aflac. get help with expenses health insurance doesn't cover. find an agent, get a quote at aflac.com. you do look like me. mhmm! all the buzz around bitcoin isn't just talk anymore get a quote at aflac.com. crypto has gone mainstream.

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now the answer to today's aflac trivia question. which president is on the $2 bill? the answer? thomas jefferson. the silicon valley story most investors like to mote has founders teaming up for big ideas. when it works, making millions or billions of dollars. there is a darker side we rarely see when financial backers clash going to battle over control, money and reputation. jon fortt joins us with more. >> becky, this next story is that battle and unique in it was exposed in court and captured on

camera. the characters might be new to you, but the plot that unfolds is too common. here's the story. at the center of this battle, the start up toptall. it connects companies with freelancers. the founder taso. >> top talent in 2010. >> in the other corner, denis. >> i was giving them $1 million at a very fragile point in history. >> more than a decade ago, the two men were on a mission together to turn the tiny startup with less than 50 employee s into a power house. now it has 600 employees. by 2021, the company was generating more than $200 million in annual revenue and valued as high as $3.6 billion. but in 2023, the two men became

opponents in the courtroom. behind the scenes, grosz original orchestrated cancer patient strategy. >> make it capable of stealing the company. >> we will have more on "closing bell." you can go to cnbc.com to watch the story. evidence gives an inside look at the saga. i moved to silicon valley 25 years ago. this is the wildest story. >> you have seen a lot of crazy stories. >> he is a high school dropout. 15 years ago, he starts the company and structures it as an llc that he controls. from the very beginning, it is profitable. a couple years in, he takes financial backing structured as a loan that converts to equity if he raises from vcs.

the thing is he never raises the equity and pays back the loan with 4% interest. denis felt this wasn't fair. he set up a competitor company secretly and poaching employees from top tal while attacking taso's reputation in the press and this gets exposed. >> on the other hand? >> exactly. is there enough? >> it's tuesday. >> investors expect that they will get a return. >> you don't need to do another. i want to know if there is another hand >> aso won the first round in court and denis is appealing. this is unusual because the growth at all costs strategy means that founders take on all this money and when things like this happen, investors say why don't you just settle. >> so, this is unusual, you said

the top, this is uncommon because of what you see. how often do riffs like this happen with the founders and backers? >> it happens a lot. look at openai right now. you see a little bit of it. an unusually powerful founder and unusually popular investor in elon musk. >> right. >> we saw it with uber, right? sometimes this peaks. very seldom do you get a full court battle. >> stay where you are. we have news coming across the tape from meta. it is ending its current third party fact checking program in the united states and moving to what they're calling a community notes program similar to one that elon musk has on his platform x. meta will move the trust and safety teams that write content policies and review content out of california into texas and

other u.s. locations. the company will take a more personalized approach to political content. the people who want to see more of it in their feeds can. that's a very interesting move on top of both the move to add dana white to the board which happened in the last 24 hours and add to that, potentially maybe the inauguration -- >> and change in the policy officer. >> and getting rid of nick clegg. a lot of -- i don't know if this is a move to the right, per se. >> it's a move away from the left. >> clearly a move away from the left by getting out of california. >> four years is a long time. no one wants to be left out in the cold. i thought about this yesterday. i won't bring it up. you know, when we were at ge, we were owned by ge and obama came

in. you saw the currying the favor and launched the eco whatever the hell that was. the movement was favor with obama and almost bankrupted the company. it went down in flames after it all happened. that had a lot to do with getting in tight with an eight-year obama administration. didn't help the company when it was all said and done. it is coming back, thank god. look at the ay. >> are you suggesting this is a good idea or bad idea? >> good idea. >> that's why i'm asking this question. >> depends on whether o you are currying favor with. >> it depends on your regulators. we have been talking about this the last couple days, jon. the idea that tech companies, some of the big tech companies were proud of the fact they were on the opposite coast of washington, d.c. and tried to keep their distance. you saw changes over time with

microsoft after it went through the anti-regulatory issues it had. they've dealt with things differently. i wonder if the big tech companies are taking note of that and doing the same thing. >> this reminds me of seasoning the soup. it needs more of this. >> that could be a mistake. >> right? they overcorrect in one direction versus another. they have billions of people, at least facebook/meta does. they will try this out and sometimes it does something in one country over another. they have to have a policy. >> here do you stand on the idea of community notes? did if you go back, facebook was exposed because people were putting misinformation on the platform and you argue they overcorrected by building an entire content team to try to police everything and this appears to be sort of the reverse of that to say we're actually going to go back to the

idea and rely on the community to do this, right? >> that's what it was at facebook. >> i doubt that's what this is. it doesn't make sense to me. we will go to real people putting notes. so much is about a.i. where is a.i. going to come into this for flagged to the community or checking the community? i want to know more. >> do you want to rely on the quote/unquote community? elon musk said that's how he has done it and done it -- >> andrew, you don't want to rely on the editorial board of the legacy media operation to decide what's misinformation. you don't want to do that. we have seen that movie. that's why media is 6% approval at this point. i would much rather have an influx of common wisdom come in and tell me if something is true or not. not what the washington post editorial board decides. >> take the folks you don't like out for a second. >> there aren't any left.

>> that's its own problem. >> are you talking humanity broadly? >> mixed media. >> there is the idea that -- first of all, the stuff that trends online is typically the most outrageous stuff. that's how it works. click bait. the second component part of this, when you have the click bait, typically the stuff that's wrong trends farther first. it's very hard to put the genie back in the bottle or the toothpaste back in the tube when you get the note on the item after the ct. the number of people who have seen the story versus the correction. >> this goes back to mark twain. i'll not quote him perfectly. how a lie runs around the world before the truth gets out of bed and puts its ts on. >> trying to suppress it in a

consistent, ogical or fair way in the first place. >> this is one of the great questions of our time. >> a social experiment every day. >> we're in it right now. >> thanks, jon. >> a simulation. when we come back, governor of new hampshire chris sununu will discuss the economic agenda and what is ahead for the new congress. plus, you do not want to miss this. outgoing ftc chairman lina khan in her exit interview over the last four years and how it may shift under the new administration. we have that in just about an ur. we have that coming up. don't go anywhere.

some breaking deal news. getty and shutterstock agreed to a merger of equals in a deal valued at $3.7 billion. the merger is expected cost synergies of $200 million by year three. the new company is getty images holdings and trade under the

nysc under gety. when we come back, justin trudeau is stepping down as canada's prime minister. we will talk about what it means for trade and tariffs under the incoming trump administration. futures this morning have been in the green. dow actually up by 90 points. nasdaq has bounced in and out of positive and negative territory. basically flat. the s&p futures up 8. "squawk box" will be right back. money for your ngs. oooh the asian market is blowing up! hey who wants shots, huh?! -shots?? -of milk. the right money moves aren't as aggressive as you think.

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welcome back to "squawk box." canada's prime minister justin trudeau plans to resign after nearly a decade in power. he will stay on as prime minister until his liberal party joins. we bring in bruce haman who served as ambassador to canada. boy, are we there right now. mr. ambassador, thank you for joining us. maybe one of the first casualties of a trip to mar-a-lago, ambassador. >> you know, while those dots

look to connect, the reality is in canada, prime ministers of either party, conservative or liberal, have about a ten-year term. while they have been reelected various times, and it isn't a term, but ten-year life expectly as prime minister and trudeau is at that mark right now. it is not surprising. also in a post-pandemic world, we have seen a lot of changes in government in the western world and canada is no exception having faced the same in the united states with inflation and cost of groceries and rising levels of government debt and those kinds of things. so, look, he faced a battle within his own party and he addressed that directly when he addressed the canadian public and he knew that he knew the election was scheduled to take place this year. he knew it would be very

difficult for him to survive that. >> okay. let's talk about the implications of this and how the politics change in canada and how that changes the relationship with the united states. >> so, let's just go at a high level first of all for all americans. the u.s. has no better partner, no better ally, no better friend in the entire world than canada. we're lucky canada is our northern neighbor. if we went around the world and choose anybody, we would go back and choose canada again. how it will change? i think it is a good moment in some respects that we have a new leader in the united states and new prime minister in canada. it gives us an opportunity to sit down and have a dialogue and build on what we have done so successfully and historically in building this incredible relationship. you know, over 2/3 of the united states states their number one export market is canada.

you i have traveled with republican governors in promoting trade recently in the last year with governor pritzker from illinois. it will be a good reset moment for two leaders to sit down. >> when you think about this, though, what is the take inside of canada about some of president-elect trump's commentary as it relates to canada being the potentially great 51st state of the united states? what does that do to the psyche of all this? >> well, look, there's a range of reactions. some of the reactions are thinking it is humorous. others, you know, take it as a compliment. you think we're so valuable up here, you like us to be part of the united states. the reality is the canadians are very proud people. they are next door and some americans think they are just like us. they're not.

they are a unique culture. i experienced this on both sides of the border in business and politics. i will tell you i think it just energizes and gives the opportunities for canadians to come together with the dialogue with the united states. i think everything donald trump would like to see get accomplished with canada can be done diplomatically and done behind closed doors and conversations with new ambassadors and new secretary of state coming in marco rubio and under. for the most part, this is the richest relationship between two countries in the world. >> is there anything to -- any joke they always say there is some truth. says that the trade imbalance with

the u.s. subsidy dies what happens in canada? that's the point he is making being next to the very lucrativ certain ways, you say there are small areas that aren't fair. is that all it is at this point, mr. ambassador? >> joe, i sat down with the foreign service officer and looked across the table at said that we have with canada? after a pregnant pause, she said there are none. i said there are none? we have keystone pipeline and we have, you know, stuff with lumber and the detroit windsor bridge. who pays for that? >> milk. >> milk. we have milk and dairy. she said -- >> real milk. not almond milk. >> we just have opportunities. now, the trade imbalance that people are referring to is

substantially energy. look, we need that energy in the united states and we benefit from the strong relationship. the energy that we get from canada is of all types. it's from renewables to fossil fuels. it's from hydro to solar. so, look, i think the opportunities to expand the energy relationship is there, but, you know, this trade deficit is small in terms of the total size of the relationship. we have a multibillion dollar daily trading relationship and investment respect lationship t creates jobs on both sides of the border. it is better for both of us. we create jobs and we're better as a result of it. >> okay. ambassador, we leave the conversation there. thank you. >> pleasure. coming up, should bitcoin be part of your 401(k)? we have that story ahead. in the next hour, you don't want to miss this, a wide ranging

exit interview with ftc chair lina khan. all that's happened in the last four years and what's coming up in the next four years. all that coming up after this.

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bitcoin began the week trading back above $100,000. some analysts see the crypto asset rising to $190,000 or higher in 2025. there is still skepticism among ors if assets are as good for a 401(k). sharon epperson joins us. >> the most popular of the funds, the ishares trust ballooned to over $50 billion in total assets. right now, crypto is a smart part of the 401(k) market, but

it could grow in 2025. the securities and exchange commission approval of spot bitcoin in etfs last year was key for the industry. now new options with individual retirement accounts and brokerage biwindows for 401(k)s. views are mixed if it is wise to add any at all. some financial advisers say it should be part of the 401(k) plan because it is a non alternative asset class and hedge against fiat currency as central banks increase liquidity. others point to volatility and risk as reasons to be conservative. since crypto can significantly increase risk, retirement nest egg could suffer a large loss at the wrong time. it is important to take advantage of other strategies to boost retirement savings this year. you can contribute $23,500 in a

401(k). you can make a catch-up contribution of $7,500 if you are 50 or older. you could super size your savings if you are 60 to 63 with a catch-up contribution of $11,250. for a lot more tax tips and retirement savings strategies, sign up for my newsletter at cnbc.com/money101. joe. >> what is the brokerage window option work? >> if you look at fidelity, they have brokerage link. you can invest in stocks, funds, etfs. a wider array of options than the traditional option of the 401(k). not every company is offering that through the fidelity 401(k) plan, but that's the way to do it. >> sharon, thanks. >> sure. coming up, news just out

from facebook parent meta. it is ending the third-party fact checking party in the united states. we will get wall street reaction to the news. "squawk box" wilbe rht bl igack be. you see shares are off right now about .40%. it's a lot to be a caregiver and a daughter. because you kind of have to take a step back. getting some help would be a great relief. from companions to helpers to caregivers. find all the senior care you need at care.com

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welcome back to "squawk." we have news out that's causing a lot of not controversial. con versation for now. meta is ending its third-party fact checking program in the united states. it will instead move to a community notes program similar to the one on elon musk's platform x. meta will move the trust and safety teams that write content policies and review content out of california. they will be moved into texas and other u.s. locations. the company says it will take a more personalized approach to political content so people who want to see more of it in their feeds can do so. we're looking at the stock off marginally. i don't think it is a function of this. meta started using an a.i. large language model to provide second opinions on some content before

it takes enforcement actions. i think it's got a lot of people talking. we should show you mark zuckerberg put together a video accompanying this announcement to explain it. we'll show you a piece of it right now. >> after trump first got elected in 2016, the legacy media wrote nonstop how misinformation was a threat to democracy. we tried in good faith to address those concerns without becoming the arbiters of truth. the fact checkers are too politically biased and destroyed trust in the u.s. over the next couple months, we will phase in a more comprehensive community notes system. >> all right. joining us right now is dan flack. he is the senior research analyst. he said he makes it sound like it is legacy media's fault for

what they were doing. what do you think of the changes? is this a fair and accurate reflection after the elections and results? >> good morning, becky. i think the company is trying to figure out a better way to balance the respecting of all different iews across the spectrum versus trying to remove some of the pernicious content. i think we will see how the changes play out. i think this is a journey that they and others will constantly make tweaks and adjustments. i think the most important thing if we step back is are they able to generate value for users on one side and value for the advertisers on the other. so, looking ahead as they make some changes here, if we see, for example, the level of pernicious content and hate speech picks up meaningfully and advertising pulls back, i expect

course corrections. i think we're in a new phase here to zuckerberg's comments with the change in the administration here, i think meta is responding and trying to look at things a little bit differently. it will take time though. >> is -- look, this is a work in progress trying to find out and look at it as a social experiment and probably always has been with facebook even before meta platforms. it's a new form of media and new reality and new way of dealing with things. does it surprise you at all to do this? is this something wall street wanted to see happen? >> i think wall street is looking for meta to continue to evolve its policies. clearly, if you have human oversight which is too biassed for and moving too far to one side, that is not appropriate. keep in mind, of course, different communities and different countries and different markets that meta

operates in have a variety of different political and other view appointments. points. i think to your earlier point, there is a continued role for so-called legacy media. i think what we're seeing here is just this continued evolutio there's a continued role for so called legacy media. what we're seeing is a continued evolution of all the different platforms to pull in different bits of content from different places. they're going to have to do a better job on making sure all voices are heard. at the same time, the platform has to be safe, where users can share and bring more of their time to it. if they're able to do that successfully, the company can continue to grow. >> that was going to be my question to you, dan. which is to say, i think there is some community of folks who are very happy with the way x is playing out the variety of

content you can see there. there's other folks who say it's too much. that there's stuff it there, and i occasionally will open it, and it's complicated, especially if you have kids. facebook has not been that, at least for the last couple of years. at least they've tried to avoid that. the question is what does it do to the user experience on one end, but on the other end, what does it do to any regulation? >> for the user experience, there's a large cohort of users that will be happy with a lot less direct oversight from the company and the traditional methods its used. for others, andrew, i would expect there to be concerns about divisive content. i think you're always going to have that push and pull across meta and the different platforms and broadly speaking, i think the importance of free speech is obviously critical,

and broadly speaking, these platforms need to remain healthy environments for people top engage. x has a different set of issues in terms of trying to surface content. obviously ender the ownership of elon musk, he's continued to make changes. we'll see how that plays out. if i think about where this is going, it's going to be about will meta be able to add value in areas like generative a.i. and evolve the user experience. even with the new boundaries as it were around peech. i don't think this dramatically changes things in the near term. what will matter, though, as i look out over the next 6 to 12 months and beyond is whether this is going to be viewed as a vibrant safe place for users. then, of course the advertisers. x has struggled with some of the advertisers going elsewhere, and were meta to see a problem with some of their big advertisers, both here in the united states and more

broadly globally, then they could change course. >> that's interesting. this company has been caught in the crosshairs time and time again politically, i guess. >> they're doing it in the u.s. by the way, and not in europe. >> cambridge analytics, then you think about the direct pressure they got from the biden white house to change things that were being put up during covid. >> laptop. the fbi told us to bury the laptop. we don't need a small group of people deciding what's true and what's not. the other system is terrible. it's just the best we have. >> capitalism. it is just after 8:00 a.m. on the east coast. >> capitalism is great. >> it's not perfect. but it's the best system out there. >> it kind of is perfect. >> there are rough edges that need to be softened from time to time. >> usually when you tamper with the purity of it. it does what it does. there's scarcity in the world.

>> there are people who get left behind, because they don't have the capabilities that the market is looking for. >> it's the only thing that generates the prosperity. you either divide a smaller pie or you -- >> i'm not questioning capitalism. i'm just saying it's not perfect. >> i just don't think it's terrible. >> i don't think it's terrible either. it's the best system out there, but it's not perfect. all right, it is 8:00 a.m. on the east coast. you're watching "squawk box" on msnbc. going to make you take a picture of everybody. thank you. >> there we are. among today's top stories, the defense dependent adding tencent. tencent labeling this move in their words clearly a mistake. it could eventually prevent the defense department from buying

any tencent products or services. getty images and shutterstock are merging. getty images stockholders were only about 55% of the combined company. with shutterstock shareholders owning the rest. you can see shutterstock shares up by close to 25%. getty images up 42% to 77%, because it's a gain of $1.11. apple is looking into adding new countries to its popular news app. that's according to a financial times report. it says the tech giant is also considering beefing up locally focused news coverage in the united kingdom. let's get to don chu with a look at this morning's premarket movers. >> speaking of those moves that we're talking about here, we're also looking at shares of apple right now, seeking as moffett

downs the stock to a sell. analysts there are saying antitrust issues, dimming china prospects and increasing competition are going to drag what was once likely a winner in that raise to monetize artificial intelligence, apple shares down about 1%. shares of tesla sinking today as bank of america downgrades that stock to a neutral, but raise their target price up to $490. it was about 400. analysts remain cautious. b of a notes risk of a potential regulatory environment not beings fairable. tesla shares down 1.5%. shares of bank of america up higher over 1% right now as the stock is upgraded from a buy to a hold. hsbc is citing the big bank's recent pull back as a buy back opportunity. and calling this an overlooked

winner in 2025, ahead of a looser environment. those shares are up 1% right now. for that and other top calls of the day, just head over to cnbc.com/pro. andrew, i will send things back over to you guys. thank you very much. when we come back, the lina khan exit interview. we will talk to the ftc chair about everything that's happened over the last four years and what she thinks of the politics and maybe competition in the next four years. but next, we're going to speak with new hampshire republican governor chris sununu about the gop's new era in washington. don't go anywhere. "squawk box" coming back right after this. help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. ♪♪

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our next guest joins us now to weigh in on president-elect

trump's economic agenda and the reordering of power in washington. let's welcome governor chris sununu of new hampshire. his fourth and final term ends this thursday. >> two more days. 48 hours. and then i become a real nuisance for everybody. then i can shoot my mouth. >> you might become a contributor here. i would love to have you as a contributor here. break the mold. >> i'm really cheap. i come really cheap. >> that's tmi. i don't need to know anything about your personal life. but what we saw with mike johnson, and do you remember -- you were here friday, emember, becky? i was talking with jake sherman. remember the last speaker? that complete 15 vote mess we were in.? >> yeah, with mccarthy. >> trump, where he is, and his, i mean people out there will get mad if i say stature, but he does have stature now with

the republican party. and the haters are going to hate. but i said it's going to be different this time. is he going to be able to literally be a whip and make this happen? because people were saying that mike johnson was going to be 8, 9, 10 votes short. >> no, it's going to work. >> he made two phone calls and it happened. >> it's going to work because again, you have tom massy and some folks that are real identifyo idealogues. kevin was dealt a really bad hand. kevin was great. i think he would have been a really good speaker, but kevin was dealt a bad hand. i think the solution is this. trump's going to get a lot of what he wants, even with thin margins. but i were massy and some of these guys that won't to vote no, you've got to put on paper what you want.

you've got to be clear on strategy. it can't be we want complete entitlement tomorrow. that's not practical. i think they are practical. i think they can lay out a strategy and understand in government you can't get everything you want. >> governor mccarthy was here yesterday. obviously he's still smarting with what they put him through. they're neglect shouting negotiating for their own interest. >> if you want him on a committee, put him on a committee. >> you irritate the rest of the caucus, who has been there supporting you. >> i think the biggest opportunity for congress is -- and i'm a believer in doge. i'm a believer in what they're trying to do fundamentally. if they nip around the edges on a program here, or a program there, stop wasting our time. they've got to say we're going to give the money and the control back to the states. we understand what federalism is all about. we're going to lean into those ideals.

i think trump believes that. i think the doge folks believe in that. i think a lot of folks in congress believe that, and especially the senators. there's opportunity there. again, you just can't get everything you want at lightning speed. i do think there's a different hand being dealt to johnson than there was to kevin. kevin was unfairly dealt with, unfortunately. i think the speaker and trump will have a lot more cache. there was no trump. trump was out there as a guy running. we think he's going to win or maybe not, who knows. but he wasn't in there today. he's in there today. >> he had lost '20 and '22 and there was that perception, you go with trump, you're going to be a loser. then it turned into seven swing states, and the house and the senate. it's all real. 312 electoral votes. what really got me and the irony occurred to me yesterday. you've got these high minded guys with johnson, i'm going to stand up to this spending, i'm going to do that. i'm so virtuous.

no, this is all about me and the american people. trump says if you do that, you're going to be primaried. and they go like that. it's about them keeping -- that's what i mean. so you threaten them with not being in the house anymore. then suddenly you see who it's really about. it's about them. >> this is public service. it shouldn't be a public career. we can go all day about the civics of what they're doing. >> there's something to be said about spending limits. >> i'm a balance budget idealogue. now i'm practical. i think they have to lay out a plan. i'm a firm believer if you don't at least start talking about economic reform, a massive crisis is going to come to this country when social security and medicare go bankrupt and we're well over $40 trillion in debt.

that's just math. >> should we be cynical? i saw john thune talking about the filibuster and what our forefathers debated about, the senate debate. so the big bill is going to be done through reconciliation? >> i hate the reconciliation stuff. >> so we love it, but republicans are just like the democrats and they'll ram everything in there, and do it through reconciliation. >> it forces everything to be put into these 15,000 page bills as opposed to dealing with -- >> he wants a big, beautiful bill, he keeps saying in vintage trump. >> here's the solution to all of it. send it back to the states. get rid of these massive departments. let california do what california's going to do, new hampshire's going to do what new hampshire's going to do. as bad as california or new york is being run, they're actually a lot more fiscally disciplined than washington, d.c. and they're run by liberals. >> that's scary. >> take some pride in yourself and understand that your blowing it fiscally. >> is it sending it back to the

states or letting states keep what they earned? should there be redistribution? what new yorkers will say, we send a lot of money to the federal government. >> i don't mind the redistribution part of it a little bit, because it's a big country and states are so different, and i'm not saying change the formula. keep the same formula as you have. >> new york says we want to provide more social services so we should be able to keep more of our revenue and do that, rather than give it to states that aren't producing. >> i would say give them their medicaid in a block grant, get rid of all the rules and regulations and restraints. new york knows what new york needs. new hampshire knows what exactly what they need for special ed, special schools, charter schools, and every state is a little different. send the money back. let them decide. get rid of the washington strings. but it's not just a sense of financial mismanagement in

washington, they're also holding the control, the strings attached, the regulatory. that's where the understanding is for business. to understand that regulatory environment. how it's going to play out. when we say we're getting rid of the department of education, that's a good thing. but what does it mean from a state to state aspect? >> what does it mean from a consumer perspective? if you're somebody who's got special needs kids and you feel the states may not do the same things the federal government was requiring they do and getting the funding from the government. >> there's only certain things i can do with the federal money that comes in education, even though i have needs in special ed. same thing with medicare. i have needs in my programs that i have to go to washington and wait two years for lawyers to review a waiver just to get the services that i know they need and that would be more affordable and efficient at a local level. >> your state is better run

than others. >> i think the word is best, but we'll use better. >> do you have a forwarding address or anything? where are we going to find you? >> i'll probably be in private equity. i'll be here. >> honestly? >> i'll come down, absolutely. i'm going to live locally, work nationally. help some of these private equity groups understand -- >> that was a total guess. >> business is what i do. i'm an engineer. i'm a business guy. i obviously understand the regulatory environments. >> will you work for amtrak? >> amtrak? are you crazy? >> you said you're an engineer. not that kind of engineer. okay. >> i got to see your congestion control driving in last night. >> how do you like it? >> awful. government controlling its citizens is always a bad idea. >> we'll get it right this time. they're never going to get it right. that's just what they tell us

every time. governor, thanks. when we come back, a potential confrontation averted at the fed. the bank's vice chair for supervision will step wndo next month. probably removing the possibility of a showdown with president-elect trump. we'll talk about that. then we'll hear from ftc leader lina khan in an interview you don't want to miss.

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the feds top banking regulator, michael barr will step down from his position next month. that will pave the way for president-elect trump to name a position for that job. bank stocks rallying after that announcement. take a look. bank of america shares up by 1.4%. citigroup up by 1.5%, and j.p. morgan and chase up by 0.4%. joining us now is michael walker. this is a pretty big deal for

the financial stocks, brian. why don't you walk us through exactly what happened here. this is a situation where barr is stepping down from that oversight position. he's still going to be a governor on the bank. and i guess that means that incoming president trump will have to choose someone who's already on that federal reserve board for who comes next in supervision? >> correct. yes. so with barr stepping down with his leadership post by staying at the board, that restricts who the president -- president- elect with choose to fill the leadership spot.. there is no opening yet on the board. probably won't be until next year. you look around the board members. there are three republican appointees being obviously the chairman, governor waller and governor bowman. governor bowman who has been active and outspoken on regulatory issues seems to be the obvious choice. there's no guarantee. but to me it looks like governor bowman would be the

likely and logical successor to vice chairman barr. >> so we saw the financial stocks up on this. the bank stocks up higher on this news. what are the implications with barr stepping away? what does it mean for the oversight that's been in place for the rules that have been proposed? >> look at his title, vice chairman for supervision. he runs the division of supervision and regulation, those are two issues that are very connected. supervision i would argue, you're going can to see the most immediate impact, but this will be behind the scenes. this is how bank examiners go about their jobs of overseeing the banks for which they're responsible. you can have changes to that, behind the scenes on day one. so i think you're going to see a more benign supervisory environment for banks on march 1 as soon as the replacement takes over, whenever that is. then you have the regulation aspect. let me back up. on the supervisory side, you're

going to have m and a as well. the head of superadvice oversees the vetting of merger applications. i think you will see a quicker process that's probably going with to be more beneficial for smaller banks. there will be some questions for regional banks. how big will the regulators approve new mergers? that's going to be an ongoing debate, but i think it's going to be a little easier for them. but then, just onto the regulatory side. the actual rewriting of the rules. and the end game, the capital rules which would propose after silicon valley's collapse in 2023, it's been on hold for a while, the chairman powell has been saying they're going to make significant revisions. i think it probably gets a total rewrite. some people would argue it's going to go away all together. i'm not so sure. i think there's a very good chance it comes back, but in a

way that is capital neutral, which is supposed to be how it was done all along. not a backdoor for capital increases for banks, but really reflecting more sophisticated ways of measuring capital for banks. i think that's the likely outcome with barr being replaced with somebody like a nicky bowman. >> brian thank you. brian gardiner. >> good morning guys, thank you. when we come back, we've got some breaking economic data. stay tuned. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at

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we're just seconds away from some new international trade data. the futures this morning, as you can see now, triple digit gain now barely on the dow jones. treasuries this morning, we've seen 4.60, i think for most of the session. those are some recent highs. rick santelli sanding by at the cme in chicago. rick, you've got some numbers for us, please. >> yeah, trade balance. we know it's going to be a deficit. it's for the month of november. expecting a number around minus 78 billion. almost spot on with expectations. minus 78.2 billion. in the rear-view mirror at least, up until now, un revised october, minus 73.8 billion, just revised, but only a smidge. now there's something

interesting about 78.2. first of all, it's the biggest deficit since september, when it was 83, almost 84 billion. that was the biggest deficit going back to may of '22. i'm going to give you some trivia, joe. we started following the trade balance in january of '92. if you look at pre-covid, february of 2020. it was minus 40 billion. prior to covid. so from february of 2020, all the way back to january of '92, the biggest debt we had was minus 68 billion. my point is so much has changed post-covid, whether it's with trade, baseline spending by the government, these numbers are shockingly high. even at 78.2 billion, that's well below 101 billion, that was in march of '22. so these numbers have really grown significantly, and it's something we need to pay

attention to, and how tariffs legislation with the next administration may effect exports, trade deficits, only time will tell. i know that in the first administration of trump, of course these deficits were something to pay very close attention to. technically on interest rates, i've been monitoring 32 year bonds. they had a double tap on a closing basis with 481, 482, yesterday, we surged over that. we are now holding above it. it doesn't mean that we can't see rates come down a bit. what it tells me technically is the consolidation is around the 480 level and 460 level and 10s. most likely, we're going to be doing more work at higher yields above that. >> steve leaseman joins us with more now. good morning, steve. >> good morning. i think the issue of following the trade deficit is interesting. not quite sure we should follow these numbers, because there's a lot of sense, joe, that one

of the reasons for the increase is because of front-running on the tariffs, as well as some of the pay back from the port strike. so those two factors right now might be pushing up the deficit. what will happen economically, joe, is i believe the trade deficit widens. this stuff ends up in inventory, which maybe sort of offsets it. so not a big economic impact. but right now, i think the numbers are distorted a bit by front running, although the china trade deficit did come down to a still elevated $24 billion. one thing i want to editorialize michael barr leaving as vice chair of supervision. i don't think he should leave because it superverts the will of congress. a term that did not go along with the president, because they wanted that to be separate. so what i think ought to happen, is if this is such a political position, the

president should have his right or her right to pick that person, then i think that should be separated from the federal reserve. so my sense is, barr ought to have stayed. whether or not he's the right person for the job, i don't know. but by him staying on, he doesn't give the trump administration the flexibility to pick the person they may want, mickey bowman could be a perfectly good replacement, but if it's such an important job, politically, that the president ought to have his pick, it probably ought to be out of the fed, joe. >> rick still with us. did any of that -- >> the president gets his pick for the chairman of the fed. >> where's rick? >> is that it? the numbers you're talking about, they're skewed from the tariffs coming in later? >> you know, i think the front running that steve talked about is real, but i do think for the most part it's already peaked. i don't see that it's

necessarily effecting the numbers now as much as it has affected them potentially right around mid-24, when we're at 75, 76, 77, 79 billion, all skewed together. it doesn't mean it that after trump is in office, we may see these numbers moderate a bit, but if you really take a step back, it's really hard to ignore how much the world has changed post-covid. i mean, it just really has changed. whether it's, you know, we spend 25% more, all these things ultimately are going to come back to haunt us, because with the trade balance doing what it is, should the tariffs actually be counterproductive? you can see this number back up to 90, or 100 billion again. >> all right, steve. >> i don't know that it matters. there's a big long debate about that. i know you've got lina khan coming up. the producers are anxious. but i'd be happy to have a nice discussion with rick about the

extent to which the trade debt matters. president-elect trump believes it does. the economists do not. >> we consume a lot. >> we'll do it some other day, jeff. >> thanks to rick and steve. coming up after this, we've got the big exit interview, ftc chair, lina khan is going to join us for a wide ranging conversation you do not want to miss it. "squawk box" coming right back after this.

welcome back to "squawk box." joining us right now first on cnbc for her exit interview as ftc chair, lina khan. thank you for joining us. we've been talking to you now for four years. eight more days before it's over? >> business days, that's right. >> business days, before it's over. i want to talk about the last four years, the way the business communities thought about all of this. the way the business communities thought about you,

and the way you thought about all of them. but i want to start before looking back on these last four years, i don't know if you saw the news that came out this morning from facebook, from meta on community notes, they're going to effectively get rid of their policing, if you will, of content on their own and move parts of their team to texas from california. there's a whole sort of move a foot, also yesterday dana white joined the board of meta. the reason i'm even mentioning this is i wonder whether you look at that, and this effort by some of the tech companies and others as a rebuke, if you will, of what you and the ftc have been trying to do over the last four years. >> well andrew, it's so great to be here with you. look, what the rules are for speech online is an enormously important question. and a world and an economy in which those rules are being set by a single company, or even a single executive, is deeply at odds with why we have the

antitrust it laws and the antimonopoly rise. this is an economy that has thrived when we have fierce competition. and i've heard a lot of concerns, including on both sides of the aisle about what happens when you concentrate control and have gate keepers over who gets heard and who gets to speak. >> it sounds like you're a fan of what meta is doing then? >> look, i think we should have an economy where the decisions of a single company or single executive are not having an extraordinary impact on speech online. i know that's a concern that we hear bipartisan members of congress talk about. so it will be interesting to see what happens. we, of course, have litigation ongoing . there's going to be a trial starting this spring. ftc versus facebook, alleging their prior actions were illegal. >> what do you think of the relationship we're seeing between big tech and the next administration? what do you make of the meetings and pilgrimages of

which we're seeing mark zuckerberg go to mar-a-lago, or a jeff bezos or a tim cook? this is a very different kind of relationship than the biden administration had. and specifically what you represented to the business community. >> so i approach my job with a focus on faithfully enforcing the law and making sure we were to go that across the economy without fear or favor. there has been, as you know, a lot of concern about dominant, digital gate keepers again across the aisle. as we've seen the president- elect and future points, he's noting that he's making these appointments with a view that they're going to continue to maintain a tough line against some of these big technology companies. >> do you think they are? given the meetings that we're seeing, given the million dollar donations to the inaugural. only eight business days left in your role. what do you make of that? >> look, i can't predict what future people in my position are going to do.

it is true that the ftc has been very successful including in its ongoing litigations against amazon and facebook. so it's only going to be natural that those companies are going to want to keep in and see if they get some type of sweetheart deal. can they get some type of settlement that's cheap and lets them escape from a liability finding in court. >> do you see that happening? is that what you think is happening? >> i hope it won't. but again, i can't predict that. and we are set to go to trial against facebook this spring. against amazon in fall of 2026. of course, they would want a sweetheart deal and i would hope that future enforcers wouldn't give them that. >> you mentioned amazon. that's a company that just made a documentary deal with melania trump. what do you make of that? >> look, i think in general our economy, including our tax sector has done best when we've had open competitive markets.

we have an economy that has traditionally shunned the centralization approach that other countries have taken. we've had an economy where even incumbents have had to look over their shoulder. >> you're talking in a very sort of academic way about this. i'm asking from a very practical perspective, and personal perspective, what do you think is going to happen over the next four years in the extent you've seen these meetings taking place and you've seen the rhetoric in the business community. by the way, you've seen the number of deals that you keep hearing about a sort of massive pipeline that's already started. what you think of that. people saying, i'm going to do the deal now, because guess what, lina khan's not going to be on the job in two weeks. >> so we took a more rigorous approach to enforcing the law, and we've been vindicated in court time after time. we've now had over a dozen

courts cite those guidelines as persuasive authority. there used to be a view that even illegal deals could be cured by divestiture. we've rejected that deal, including in the kroger albertson's deal. the court vindicated us. there used to be a view that mergers would be benign. we've blocked close to a dozen deals. we've had courts go after us on private equity roll ups, including in healthcare market. so look, is there a risk there would be a back sliding? of course. but now that the court has resoundingly vindicated our approach, we know if there is a reversion that's going to be in contravention of the law, because of it. >> one place where you haven't been vindicated is this issue of non-competes. this texas court is fighting

it, right? do you think that was overly broad? do you look back and say i wish i had done that differently? >> the noncompete rule we finalized last year after 25,000 comments from people across the country sharing, as you know, these provisions are now used for fast food workers, security workers, janitors. ultimate we got sued in three different courts. each of those courts same out of a slightly different place. so the everyone district of pennsylvania said preliminarily, the rule is lawful. the district court of florida said the ftc. you're right that the texas judge has put the rule on hold and we are now appealing that. i think we're right on the law. i think we have a duty to the american people to eliminate non-competes if we think they're violating the law, and thousands of non-competes have already been dropped for workers because of the ftc's

efforts. >> you've been in this well enough for years. you've learned a lot, i hope you've learned a lot. what would you have done differently, given what you know now? and given that you've became a symbol to a large degree for many industries, which by the way, turned out to ultimately vote for president trump interestingly. whether you think about that, whether you think that that matters. whether you think about the long term viability. you talk about back sliding court cases today that may get undone later. i assume you would have wanted, even though you don't think you're political, you would have wanted vice president harris to have won or president biden to have won. when you think about the long term nature of this, what would you have done differently? >> so of course we would have wanted more time. one person i found a lot of inspiration from during my tenure was actually president

reagan's ftc chair who came in with a specific vision, a lot of focus and ended up creating durable change. of course directionally, i wanted to do something different. but in terms of the impact they were able to create, that's what we have really looked to follow. one other thing thew i really prioritize during my tenure was hearing from americans across the country. in these types of jobs, it's very easy to become insulated, hear from people in d.c. one thing i heard from people across the country, was a desire for a more aggressive cop on the beat. the answer was not more monopolization, or more consolidation or more mergers. i think across the country there is a recognition that the work the ftc has been doing is making people's lives better. >> is there not one thing you can point to over the last four years you wish you would have

done differently? >> one frustration is how long these cases take. the meta case that's going to trial this spring was filed during the original trump administration. the amazon case will have taken three years. of course you always think about, is there something we could have done differently. >> i'm saying for you. your own decisions. this is the kamala harris question. what have you done differently, what would you do differently? and by the way, i think she lost a lot of points publicly because she unfortunately was on "the view," and was unable to answer that question. you've been in this job for four years. there must be something you say, i regret that. i've learned something. what did you learn? >> across the board, there are always hard decisions you have to make about which lawsuits you're going to bring. which lawsuits you're not going to bring. i think every lawsuit we brought, we brought because the law and the facts were on our side. overall, of course you have to

think about resources. the ftc ended up getting restraints, budgetary wise, that made us rethink some of the cases we were bringing. but overall, i think we used the tools that we were given. >> so nothing? nothing? >> look, i think we could have thought through, is there a way to move these things even faster? >> let me ask you this, and it goes to big tech. you talk about google, amazon. there's always of these cases out there. then there's the a.i. piece to all of this. which is a lot of the cases that are out there today actually are backward looking. one of the things you've been looking at is a.i. and how is that going to change things going forward? and also the relationships that many of these companies, microsoft has for example with openai. what is the state of that? and how do you think that plays out in 20 days from now? >> so we have an ongoing inquiry, looking at some of these investments and partnerships between the incumbents and some of the newer startups trying to understand what's really going on here.

are these investments that are really interfering with the independent decision making, and is that going to undermine competition? that inquiry is ongoing. i'm hopeful we would be able to share something publicly. >> there's an announcement, you think, coming in the next week or two. >> i hope so, we're a multimember commission, so we have to vote. >> how do you feel about doing anything in the next two weeks as it relates to bringing suits or anything else given that there is a new administration coming. there is an argument that executive orders and other things that the administration is doing today that they shouldn't be doing. they should hold off and wait until the next administration to get into office. >> well look, of course, we're going to do everything we can to smooth the transition, and i've offered that to my colleagues. but we're going to use every day we have to enforce the law, around make sure -- >> but how are you trying to lock something in now?

some people would look and say, look, the other guy won and the american people spoke, if you will. so trying to lock people into something today that then someone has to try to undo later is unfair. >> well look. inauguration will happen when it happens. until there, this administration is in place and i took an oath to enforce the law and do our job as long as i'm in this job. >> biden just blocked japan nippon deal with u.s. steel. i'm curious how you think about, and how maybe you think president trump should think about foreign countries that are allies of ours and whether they should be allowed to make acquisitions in our country. >> so as you know, this was a process that was, you know, led by sipius, the ftc doesn't have a role in some of those national security implications. i do think across the board

there has been a view of how extreme consolidation can pose a national security risk. note how extreme consolidation in the defense industrial base is creating that risk. and we've seen how even areas like eras craft manufacturing, extreme consolidation can create that risk. i know people, including airline executives have traced some of the challenges at boeing all the way back to the mcdonald douglas merger a couple of decades back. so we need to be aware of the deep connection between having robust competition and how that helps us domestically, but also internationally. >> trump's pick for your job, the successor is andrew ferguson. you know him. what do you think of him, and how do you think he's going to do this differently than you? >> i've really enjoyed getting to work with commissioner ferguson. we've had deep engagement and debates, and of course i wish him all the best. of course the ftc has been extremely active these last

four years, and i think it there's going to be a lot of expectation that the ftc not go weak and just revert back to a less rigorous -- >> have you had that conversation with him? >> we're of course helping him with the transition and providing any type of support that we can. >> what about the vice president? vice president vance, who is not a fan of yours. have you talked to him? >> in this role i've had a chance to engage with a lot of senators. there's a recognition that we really need strong antimonopoly enforcement, and that's good for america. >> final question for you. what do you think of this sort of sense that there are now individuals in our country who are super wealthy, who have had enormous success. elon musk on one end, and jeff bezos that now have their hands in lots of different pies, if you will, and whether you think that regulators need to think about that in a different way

than they had in the past? >> it's an incredibly important question. you're right that some of how this is playing out is going to look different. but historically, we did have things like structural separations. even in banking we traditionally had the separation between banking and commerce, the idea being that the entities that are providing credit for the rest of the economy shouldn't be conflicted when they're directly competing with some of those businesses. so we may need to reactivate some of those principals. >> what do you do next? >> right now, i'm focused on the next eight business days. finishing strong. we're going to be running through the tape. >> the next eight business days. becky and joe, that is lina khan. the ftc chair. lina khan in her exit interview. thank you so much, we're going to come right back after this. car, were you in on this?

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we're watching nvidia shares at the consumer electronic show in chicago. they're inveiling the same blackwell chip used in data

centers with nvidia's move in the premarket, its market cap has passed apples again, now making it the world's most valuable company. and ulta beauty ceo is retiring, going to be replaced by the company's chief officer kecia steelman. she became the coo in 2023. along with that result, ulta shares this morning up by about 3%. let's take a look at what's been happening with the markets this morning. you'll see that futures in the green. we've bounced back and forth a little bit with the nasdaq. but the dow futures solidly in the green, up 130 plus points. s & p futures are up by 15. remember, this is after two up days in a row for the s & p. the dow has been down. nasdaq has been higher the last couple of sessions. you can see it's up another 27 points indicated up this morning. treasury yields have also

continued to climb. in fact the ten year yesterday closed at the highest level since november of 23 the. you can see the ten year is at 4.63. two years at 4.67. but we're going to be watching that very closely too. we've got the andrew. great job with lina khan. join us back here tomorrow. now it's time for "squawk on the street". good tuesday morning, welcome to "squawk on the street." post nine of the new york stock exchange. stocks looked ahead to monday's strength in tech at least as nvidia's presentation is well received. but we do have an eye on the ten year testing 4.64 this morning and rare downgrades of both apple and tesla. we'll begin with nvidia reclaiming the most valuable crown premarket. jensen wong at ces says agents and self-driving cars will be among the