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 next multi-trillion

dollar growth opportunity. meta the last to make a shift appointing dana white to its board. it ends its years' old third-party fact-checking policy. it's now in favor of an x-like community driven system to check facts. and apple shares are lower this morning. this ahead of the open. down grades the stock, now a sell. >> a drum beat of bad news. let's begin with nvidia. jensen wong delivering the keynote at ces. a lot to unpack. this is what he said about the blackwell gpu and where fits into the company's a.i. picture. >> you get this incredible graphics card here blackwell, i'm going to shrink it and put it in there. does that make any sense? well, you can do that without artificial intelligence. >> i say physical a.i. is all

the talk. >> develop the evolution. i've got to tell you this physical, first i'm going to say there's just a huge amount of people saying amazon's gunning for nvidia. amazon -- like a good game of chess. no, they play checkers. after this, amazon's a checkers player. >> what does that mean? >> because amazon -- the big reason why amazon -- that amazon's supposed to be gunning for nvidia, right, microsoft's supposed to be -- good luck, he's doing physical. what he's doing -- >> wait, just to stop. what you're talking about is the development of their own chips, is that what you're saying, gunning for them? they use nvidia chips but use arm-enabled architecture that help in the data center. >> using -- i'm saying, welcome backs i'm one of the guests that if you hit them, i enjoy -- >> i like your tie.

>> thank you. >> beautiful. >> not here nor there. here's what's going on -- there have been a lot of scrum about whose inference that amazon is moving into training. nvidia's talking about robots, they're talking about the way you build a factory. they're talking about physical, talking about toyota going the way that tesla's going. they basically said you and i are going to have robots. i don't know if -- >> keeps talking about the chatgpt moment for robotics. others have been talking about that a bit, as well, lately. >> but my point is that he's leaving everyone behind. and that's why its stock can go higher. if we're doing physical, what that means is that you are going to have a robot that does -- that is going to be doing exactly what we can do. a robot will be able to talk. it will be able to be our buddy. it will do things that we haven't been able to think they could do. and this -- that's what this is

about. about productivity and robots. yes, the p.c. that we showed, that's going to be sale for a very good price. i think that's going to be competitive, maybe there's going to be a.i. but i was blown away by the digital twin for manufacturing, the toyota being like tesla, the humanoids -- remember, the humanoids, they threw a bone in for apple division pro, the downgrade a bust -- fine. >> i saw you mention that earlier. >> i think that it was -- it was about not being the jensen wong that we've been hearing about, even though he did have the incredibly cool leather jacket. i don't have that one. but i think that this was dazzling in intellectual purposes, not showman purposes. >> you mentioned the toyota partnership. the uber partnership, too. and he spent quite a bit of time talking about autonomous. >> after so many years with waymo success and tesla success, it is very, very clear

autonomous vehicles has finally arrived. well, our offering to this industry is the three computers. the training systems, to train the a.i.s, the simulation systems, and the synthetic data generation systems. we're working with just about every major car company around the world, waymo and zuks, and tesla, of course, and their data center, byd. the largest ev company in the world. 100 million cars built each year, a billion cars, vehicles on the road all over the world. a trillion miles that are driven around the world each year. that's all going to be either highly autonomous or, you know, fully autonomous coming up. so this is going to be a very large industry. i predict that this will likely be the first multi-trillion dollar robotics industry. >> okay, so who's been a huge customer? tesla in the data center. notice he said the data center, didn't say the car because they're not making the car. if toyota does that, toyota has the balance sheet to do it.

they have to buy -- may have to buy 500,000 chips to get this done. so you're looking at rders from now to kingdom come. over and over he said we're ready to ship, blackwell ready to ship, blackwell shipping volume. therefore, you want to put the numbers up right now. i thought there would be people who say i've already heard this. remember the new thing, when we had it, go over it -- >> we knew this -- >> okay, which is the new? which is the new? david, there's a lot that was new. it just wasn't jensen just going wow, there's a wow. and by the way, you know what it started with -- >> tell me. >> a bartender making a drink. >> you've talked about them a number of times. when you were there for that. right. >> no, i'm just saying that -- i was spot on on that. jensen might listen to the show or something. >> as we start this year, there are a lot of -- it could be an amazing year for advancement in

various areas of technology. whether it is robotics, as he said in this chatgpt moment where suddenly all the things you've talked about start to come to fruition. >> right. >> that we all have talked about. there will still be significant advances made in a.i. itself, salt altman quoted -- sam altman quoted saying in the next four years or the trump administration we're likely to get to agi. he said that. >> yes. >> interesting to see him sort of discuss the next four years and artificial general intelligence being reached which is the reason that they even created openai, of course. >> right. >> way back when. and autonomous vehicles, as well, and advances that are going to be made this year. there's a lot that we're going to be -- as we have been for years, but it may start to question. the question is what's it going to mean for the enterprise. >> right. >> for companies in terms of use of robotics, in terms of a.i. and intelligence being used in the enterprise to help efficiency and productivity.

>> i'm going verrazano bridge you. >> okay. >> the reason why you do the getty shutter stock, this thing can read video. it's a killer. i mean, this is the type of thing that i would never allow -- like these two should be competing against each other. this is the video -- say you wanted this as the picture, i've often mentioned that. if you want to know how to strike out every player on the other side, you just -- the robot can do that because it ingests video. it's a big thing. so you want pictures. getty was mentioned to me by jensen, a little back. but david, the deals that are happening -- >> we've got four at least on our docket today to talk about. >> yeah. none of them enormous. we've obviously got cintas coming public for another uniform company and a significant premium. we've got a deal in medical devices with striker. we've got the one you just mentioned, of course, as well.

>> paychecks pay corps. >> and paychecks pay corps just got announced -- >> these are fabulous competitors. you take them out, it's so good -- i celebrate these deals. these deals are about capitalism, not socialism. >> if the enthusiasm on a.i. is so strong, why is moffett coming out today, david mentioned the downgrade to sell, saying that consumers seem unmoved by a.i. functionaliti? >> let's talk about the fact that this man had a hold on it during one of the greatest runs i've seen in my career. second, it is multiple stretch. i'm going to give him that. but you don't know what -- apple is the free rider of all time. now i did think the one thing that was interesting was he did talk about the google, the lawsuit that google might not pay them in order to -- de facto. >> may not pay apple. >> that lawsuit, that's going to be resolved in 2027, when i'm going to put it on the docket. >> the doj ongoing monopoly. >> there isn't anyone who thinks this is going to be resolved

next year. >> back to apple and moffett -- >> wall street's not going to -- but i think it's an easy shot. you know, the stock's been down, what, seven days, little rally yesterday goes up. look, i don't think the quarter's going to be that certain. but i think that there's a new way to look at apple, and he ought to get on board. the way to look at apple is they didn't have to spend anything on a.i. everyone else is spending $80 billion. >> no doubt they will benefit as you . a free rider, not having to make the enormous investments that the hyperscalers are making in terms of a.i. yet benefiting from it and being able to bring it to their consumers. >> it's brilliant. >> it is if, in fact, it actually does generate that significant uptick which hasn't come yet. >> no. >> in sales. >> i think it's interesting that it was totally viewed as a gamer thing last night. the gamers will like it. >> and the piece here, there is a lot of concern about china and their prospects there as it is

for any number of other companies, as well, of u.s. companies. consequence of both intensifying competition and near-certain reluctance about western a.i. models being allowed to proliferate. >> retaliation. look, if peter navarro got his way, yes, i speak to peter a great deal, i think it would be tough to do business because there are people in the administration who regard -- we're in a cold war with them right now that we just don't want it to be hot. >> yeah. i thought it was interesting that jensen mentioned byd there. >> yes. yes. >> that he can sell the byd. and got ahead of himself saying it's the largest ev company in the world. as of the last numbers, not quite. tesla was still ahead on evs >> we do have tencent down as a chinese military company. >> i think that that's -- that's the new world which is that we find that these companies that spy on us, companies that have any sort of technology can be used military, we're taking them out. >> yeah. although speaking of spying on

us, the incoming administration i think is not going to try and shudder tiktok, and we're -- shutter tiktok, and we're waiting for the supreme court to rule. >> what did you think about the battery, ford's battery company? i think that's significant that that, too, is on the list. we don't know what the list means. just like when biden banned all drilling yesterday -- >> that was offshore drilling. >> i forgot, today is onshore. today is onshore. how about the permian. you shut permian down? >> you seen the production numbers? >> when he's speaking about permian he's talking about the production of james dean. using it as a background for joined. isn't that what he's talking about with production? >> i think it was offshore. >> no, i know. that was being what's called facetious. >> i'm aware of your

facetiousness. >> there's talk that nvidia, they could have a bartender? >> a bartender? >> he minimizes the most important -- >> why can't he cheerlead -- >> because it ended at 11:14 and he had been asleep for an hour and a half. i chose to not sleep so i could go back over the video. >> actually i was asleep for about 45 minutes. you're right. >> during it? you fell asleep during the keynote? what, when he -- when he asked for the michelob ultra, is that when you fell asleep? >> we're going to get some firsthand accounts of people who were in the audience later on this morning. when we come back, met's in focus. mark zuckerberg announcing an end to fact checking, at least third-party fact checking, and ufc's dana white is going to join the company's board. look at the premarket. we'll get to the other upgrades on names like bank of america, vornado, disney, shack, snow, in a minute.

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we're going to get back to our roots and focus on reducing mistakes, simplifying our policies, and restoring free expression on our platforms. more specifically, here's what we're going to do -- first, we're going to get rid of fact-checkers and replace them with community notes similar to x starting in the u.s. >> that's meta's zuckerberg in a video he posted a few hours ago. the company is scrapping its third-party fact checking programs in the u.s. in favor of a community notes approach. the decisions comes as zuckerberg looks to build a relationship with the incoming trump administration. jim, he said that politics was stressing people out, but that we're in a new age now. >> it's so funny. what -- he used x. it's eally the -- the meta plan that he's using.

and what he should have said is that reddit is a superior form of getting people out of the community who are doing destructive things to the community. david, the embrace of anything musk is something that we could spend most of our lives talking because i think there are a lot of people at home who say, who elected musk? >> well, i know in europe a lot of leaders are certainly saying that. in fact, they've been forced to. it is amazing to me and i know to so many others elon musk, of course, who running temperatures, overseeing spacex, as well, and so many other companies and x and advising the president, and yet able to share his thoughts on so many different things including the way that governments in many other parts of the world should be run back to him, and having influence here, as well. conceivably it wasn't that long ago that zuckerberg and musk were at each other's throats, by the way.

>> just like he was with jensen wong. >> almost had that caged match in -- it was going to be in the coliseum in rome. i was hoping to be one of the announcers. what a moment that would have been. >> that would have been amazing. >> it never happened, no. >> i don't know. >> i'm sorry. >> i don't know if they're friends, but they're -- they're following -- you know. >> there's a lot of people who -- look, i debated giving $1 million -- >> everybody's doing it. >> don't want to be left out. then i didn't get invited to davos. if i'm gone to davos, i'm going to stay home and watch the eagles go all the way. >> the other point of -- on meta is dana white joining the board. >> how about that? >> again, fascinating. obviously mr. white very successful businessman, having built the ufc, now remember it's a part of -- endeavor or tko, excuse me, sorry. which has done very well. >> yes. what a stock. >> endeavor's going private.

but you know -- and you know, that conceivably will -- by the way, the interesting board room there. you got dana white in there, who knows what could happen? >> can you imagine? holy cow. >> who knows what could happen. and obviously dana white is close to president-elect donald trump. >> i got to be a fly on the wall. see what that's like. >> yeah. >> do you think that zuckerberg is trying to narrow the lead that musk has in terms of influence? >> well, i think he wants to play ball. >> i think that -- look, i think that he's not a changed man because of this. i think he's been going toward this for a long time. i think he realizes we've got to play a role in this country. i'm sure a constructive role. a lot of it is constructive. and i find that when he went on joe rogan, an important pilgrimage in this country, what it said is i'm a person who wants to listen to all views. that's reddit. reddit is all views as long as

it's not -- he didn't mention it was reddit, it was x, because you want to say that you're getting it right with musk. >> i suppose. >> right? are the cable companies going to get if right with musk and starlink? >> starlink is going to be a more and more powerful competitor. i've said many times. there are certain gating issues having to do with perspective trump and things of that nature. even there he may find a favorable audience tfcc and things like -- at the fcc and things like that, those regulated it. once you get the star ship up and running, it can release a payload of new satellites, the advances they've made, that will become even more powerful. >> people every day call me and tell me i've got it. there's no more latency, it's sensational. i cut my bill in half. every day i have people calling up. >> it's got to be something front and center for the cable providers particularly in their rural and even suburban areas.

>> correct. >> urban not -- >> all the people to me -- they're in the desert or in another country, and they just want to call me because they say, listen, it's coming. are you -- are you ready? are you ready -- >> we're going to talk more specifically about tesla at least and this downgrade and the long-term potential that we got in terms of forecasting. that report out of b of a. we'll get the mad dash countdown to the opening bell. futus ma cstcte. sy tuesday.uiv

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take a look at s&p premarket gainers. nice work if you can get it being part of that nvidia halo. micron up five as jensen wong said the series uses micron memory, uber, as well, on the announcement of that partnership. we'll get to some of the other stories including ulta and this guidance and ceo transition. opening bell in 4.5 minutes. don't forget you can catch us any time, anywhere, listen to and follow thesqwkn e re" ening bell podcast.

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all right. minute and a half before the opening bell for this tuesday. ultimate it's -- ulta's got the

new ceo. >> and she was coo. mr. kimble did a good job in an area -- i want to point this out, this area has been under fire because medics area has been terrible, look at estee lauder, one of the worst stocks i've seen. if you look at elf, there's a battleground there. they've had competition from sephora which has opened in kohl's. if you went with me to sephora you would say holy cow, it's a totally changed store. what i'm seeing is a smooth transition from kimble to meal isman and a better -- steelman and a better-than-expected holiday season. the fact it's up 18, i know that seems like lot, but not when it comes to -- a raise forecast and a new ceo. did a great job, 11 years. before -- [ applause ] >> before that was mary dillon. did a great job. mary worked here -- very hard

job. but i like ulta here. i like the new ceo. i like the old ceo, and i love -- [ applause ] >> and by the way, elf and estee lauder are not getting together. [ bell ] sephora's not merging with ulta. let's not go crazy. >> the opening bell here and the real-time exchange. big board, pursuit, attractions and hospitality companies celebrating a acquisition. the -- >> my wife told me if i don't get it she's going to have to play a new game with me. i mean, the -- she goes, here's my rem sleep. what if you don't sleep? >> i've been dealing with that for years now. my wife doesn't know whether she had a good night's sleep unless she checks her aura readings. >> i know i had a great night of sleep. >> oh, i feel great now. >> anyway, i think it's an interesting situation. it's a well-known company

that -- i want that stock. get some stock in aura. hanging on to s&p 6k. we got to 60.20 yesterday. gave some back. >> again, i think there's two markets. there's the health care market, the materials market, the food and beverage market. david, that area is just a wasteland. >> yeah. let's talk about that. since you bring it up. let's bring up -- and snacking. you know, everybody's always looking for latest research on glp-1s. >> we are. >> it's been a couple of years already. when they first -- >> don't go cornell on me, i did it friday. >> can economic back to it? there is a piece from deutsche bank. they also do their own work. >> okay. >> deutsche bank, and they cite the cornell study, then they cite their own, as well. >> cornell -- >> surveys. they see a minimal impact on beverages. spirits least affected. beer, soft drinks. but the cornell work and their

own work does seem to point to chips and other salty snacks and sweet bakeries. >> really amazing. >> based on household income in terms of your reduction in your grocery bill on a monthly basis. >> yes. this was one i felt if you want to save money, well, you look -- it's $400 that they're saving. and the average person is -- $400, nice saving. i would point out mr. smucker told me there's been absolutely nothing wrong with the twinkie deal, hostess. still working well for them. >> look at the performance of so many of these companies' stocks. it's on the basis -- >> on the backdrop of a market that's on fire, staples relative to the s&p is at the lowest since october of 2000. >> i learned from my friend michael hailey, a demolition man, that safety never takes a vacation. he was not speaking about snacks. because safety's last. >> less than 5% of the population is on glp-1s.

as we move to an oral formulation -- >> lily goes down, i've got dave rich next week. >> as they come to an end, these become even more effective perhaps. what percentage of the population at some point is going to be on them and what impact is that going to have on companies that sell us salty snacks, sweets, bakery goods, all sorts of other things? >> that -- >> mongolese wanted to buy hershey. i said this as i quoted someone who knows it well. they will always want to and forever want to own hershey. unfortunately, my understanding is -- not unfortunately, but they didn't come in with a bid high enough to get a conversation going this last time which i find shocking. >> go buy clorox. there's no glp-1 when it comes to clorox. >> and by the way, you've got cocoa prices through the -- look at what cocoa's done. >> are you laughing on the inside? i made a joke to jensen, he

said, i'm laughing on the inside. that clorox thing was good. >> it was funny. >> i want my tie? >> i do want that tie. >> if you look at the product lineup it's like a glp-1 petri dish. >> we don't even talk about the old rjr and -- i mean, kraft heinz now, what is kraft heinz. >> look at the -- the liquor. he said not liquor, but liquor's being crushed. >> we added, we mentioned the surgeon general recommendation on cancer links yesterday. that got written up over -- >> all i can tell you is -- >> wow, look at cocoa. >> we had this thing called prohibition, didn't work. that was a real way to wipe out. >> these studies show the impact is not that large. so what you just said on beverages -- >> it depends on the one. people don't want to own these stocks anyway because of interest rates. it's just a double whammy. >> i'm glad you mentioned that, jim. we've got 465ish, basically a five basis points from the april high. >> and technology acts well in that. if you were in health care now, you'd be saying what -- if

you're rob davis at merck, listen, things aren't that bad. it doesn't matter because it's all caught up with bonds. >> apollo today, torstin has a chart on 100 basis points of cuts, long end, up 100 basis points. what is that telling us about either the economy or foreign demand -- >> bond issuance -- >> and expectations for the coming administration. >> ariffs. we know the deportations are radically inflationary. >> right. >> but the country wants it. the country voted for that. >> tariffs and deportations, both potentially inflationary. some will argue otherwise on tariffs or talk about their only one time in nature and then you get over it. the deportations if, in fact, we get deep and significant levels, the wage inflation, many -- it's going to be significant. >> wage inflation went down when -- biden had a period where there were people coming through, and look -- they do

service jobs, the restaurant, it's just that -- it's well-known that that's -- they start there, and they put the -- spent a lot of time with the families of people work -- it's american -- it is the american dream. and i feel badly because i think i'm not as anti as others. but -- >> we don't know. we don't know, and the market doesn't know either. >> no. >> we simply don't. you know, what the deportation policies look like. if in fact they were to follow through on the potential threat of trying to deport eight million to ten million people, the cost alone would be enormous. >> it would be. >> carl, we are looking for, what, potentially at this point an omnibus bill that's going to include immigration, tax cuts, and everything as they get started here? >> the president-elect is going to meet with gop senators tomorrow about reconciliation. we do expect to hear from him later this morning. i'm sure he'll be asking about that. but thune sounded like he wanted

to go, too, and then the president was like, that might be fine with me. >> to -- >> two separate bills. >> right. the new "washington post" leaked the story -- story that was shot down immediately about the -- the targeted tariffs. >> yes. >> i wanted to talk to you -- i know it's far afield from what we talked about, but cintas is up huge. >> cintas is up. >> you know why, what a great merger. >> you're referring to a story that was leaked to "the journal" and made public this morning, which is cintas proposing to require unifirst, a $3 million market value before the news came out. they want to pay 275 in cash, and this is all part of a plan that you do when you're rolling out a hostile, well done here, guys, you -- you leak it and follow up with all the letters and everything else. the letters started on november 8th it looks like, although they reference prior discussions. they said, hey, we want to buy

you, and then you ignored us. they sent another letter on the 25th, we want to buy you. they sent one on the 27th and said we want to buy you. then on december 3rd, yeah, by the way, we still want to buy you. now, they've come public because obviously they have not been getting the appropriate response. 275, huge premium, you can see what it's doing to the stock price, up over 32%. to jim's point, cintas reacting well. as you might imagine, significant synergies. 47% premium. the question becomes regulatory in their various slides -- >> making a joke -- >> and plans they say they have -- >> that's over. >> they have conducted significant work on the regulatory front including with leading regulatory counsel and other advisers, and they're confident the path to regulatory review -- >> was it davis -- >> and closing. what's interesting this morning -- this is the most exciting deal because it's not a done deal, you can see the premium potentially, antitrust, is the fact that you've got a bunch of

deals this morning, none of them large, but nonetheless a bunch of deals that seem to be reliant on a much more acquiescent regulatory approach. antitrust approach, from the incoming administration. >> i was thinking about pay corps and paychecks. what's happening there? >> tell me why. >> pay corps's got good product. i wanted the human capital to be dominated by paychecks. it's been a dogfight. this is terrific. >> $4.1 billion deal. all cash, $22.50. >> and paychex is up because it's sensational. pay corps might have a good product, now you don't have to worry about that. i'm worried about cintas not getting the small businesses. if they get together, it's dynamite. and by the way, striker, wow. this is going to be striker's -- able to get beyond what it's doing with just the head and shoulder, knees and toes, knees and toes. >> an $80-a-share all-cash deal worth about $4.9 billion all in.

that's total fully diluted equity value. and you can see that. >> i want to buy it there -- >> every one of these -- >> many of these it would seem at least are in part at the least reliant on the idea, again, of a less stringent antitrust environment which will allow them to close more quickly, avoid potentially costly and long-term fight in the courts and things of that nature. just make you more likely to want to do a deal where you're buying your competitor. >> fantastic. >> none of them -- >> ike the old days of capitalism. it's fantastic. >> haven't heard back to cintas or unifirst in terms of why they keep saying no. these guys are coming hard. you can see that on all fronts. i got to look at the boards and see whether they're going to -- >> health care's been bad. >> health care bad. >> yes. >> now you merge together and start doing better. >> on striker, that would -- >> i'm saying striker's not been that great.

i love these deals. they take out a competitor. you can raise umbers. it's rationalized the american industry. it's everything that a previous guest on this network hated. uni. >> unicon was a guest with andrew sorkin on the last hour. >> the trial nature of suing the liquor companies that would end in much higher prices for liquor, in the end that's her legacy. thanks for nothing. >> do you think there's a role for consumer protection these days? >> this -- >> anywhere? >> well, under -- >> under -- >> president-elect trump? >> yeah. >> i don't -- the consumer? >> yeah, the consumer. >> but it's the stock. >> i mean people who say they don't own -- maybe they don't own the stock, but they're consumers -- >> i happen to think that cintas is a better provider. i would like them to be my

provider. if stryker doesn't do anything with tom bosis, it would be great to have that as part of their suite to keep prices down. i think paychex has been keeping prices down. this is a good thing to have in their suite if you can keep the price down. i'm not going to say that these deals -- i'm not being facetious. the stocks are going up, it's great. it's -- >> for the company. >> is the customer the principal beneficiary? i think the customer might want to put cintas against unifirst, say listen, we want a deal -- >> the deal from typical antitrust viewpoint would be you're taking out a potential competitor, at some point you'll have an ability to raise prices more significantly. i would note the market response seems to be this would be a good deal. take costs out, as well, potentially. >> these are really -- >> to carl's point, ultimately if you're -- if the consumer is the key constituency here from a regular -- an antitrust perspective, are they going to be a beneficiari? >> okay, take the previous --

>> whatever the consumer may be. >> take the lack and rigor -- the khan situation. her amazon case is about hurting small businesses. never did she say it was about keeping prices down for the consumer. inflation is the single biggest problem that we have in this country economically. and so she completely missed that boat. then she injected reddit into it. i was thinking, she must be speaking about the exorcist because she has the least understanding -- >> there was an approach during the biden administration that said we've been lax on antitrust for the last 25, 30 years that's resulted in discrepancies. >> the other way -- all i'm saying is -- >> i hear you. and you and i ointed it out many times when the law really -- when -- what they were trying to accomplish did not align with the law conceivably or at least where the judges who would make the decisions were going to be. and that's why they lost some big cases. they did win some in the end.

>> yes, they did. the deal was too much like the safeway deal. that was a deal too far. i was surprised that rodney did that. >> to your point the albertsons deal, the argument is it's not about grocery competition, it's about competition with walmart and costco. >> no one wanted to take that into account. costco is the one that's destroying pricing in this country in order to make it so you believe to costco. and i think that's fantastic for consumers. so it's -- look, these things are case by case. i do think that you wouldn't necessarily pit paycor versus paychex because paycor doesn't have the full suite that you need. it's a rational deal. i want to learn more about the cintas deal. you might have been able -- if cintas wanted to be in those areas maybe get a better deal. cintas is such a great company. >> right. >> i think you buy that stock hand over fist. >> yep. >> that's okay to think about stocks. >> they didn't think about -- biden used to say, listen, i'm the poorest guy n the senate?

>> yeah. >> the rich are not like you and me. with -- >> we'll point out despite the regulatory friction and antitrust scrutiny, back to back 20% years -- do you think harm was done? >> it's been a great -- >> yeah. >> what can i say? it's been a great period because of tech. and that's what moved this thing. and your friend over at apollo yesterday, mark rowan, he had the greatest quote of the year when he said we put everybody's retirement money into nvidia. maybe we should be in private -- brilliant. smart fellow. >> what he's talking about is the narrowing of the market. >> right. >> the fact that everybody's retirement money is going into and conceivably about units of risk and is there a lot more risk that you're taking as a result of the s&p being made up of ten stocks that represent 40% of the market cap. >> the stock will go down because people will say that -- it will go down because people will say i've heard it all

before. you got to check all the different blogs you've not heard before. people, i heard it before, i see the stock is going down, blah, blah, blah. >> meanwhile, the move in rates has the alternative asset managers down today. not seeing too much -- they had great years last year, pointed out many times. banks are mixed, but definitely the alternative asset managers -- >> the magnificent seven moved things. if biden's legacy is that the magnificent seven did really well, i mean given that i'm a dollar sign represented by a man, i'm thrilled.-time high fo sector. >> micron was down in the dumps because it did not have good a.i. pc. who knew their high bandwidth memory that jensen is using is all micron? the answer is everybody, but it didn't matter -- >> shares of intel up over 1%.

>> i know. >> can you -- >> the stock is positive for the year. >> what were you saying about -- >> shares of intel up 1.5%. look at that. still down 57% for the year. intel's going to be an interesting story this year, guys. what the choices are, obviously the first choice being who's going to be the new ceo. >> david's the ceo -- have you looked at the balance sheet of intel? >> i have, and so have you. >> that's a suboptimal balance sheet. >> it is obvious optimal. by -- suboptimal. by the way, nvidia coming up everywhere, even in the data center in terms of cpus. amd coming out -- like -- >> david stepped away from what i've been talking about, the palantir buying opportunity. >> buy, buy, buy. >> do you know that alex carp is one of the greatest pistol shooters in the world? >> i did not. >> 260 yards. bang. >> you mentioned it was starting

to make its move. >> yeah. go ahead, make my day, carp. i've been a carp enthusiast lately. went to central high. he's got this philadelphia thing with haverford. kind of like -- >> he doesn't like you. nothing's going to change that. he doesn't like you. i've seen it up close. he does not like you. >> 835918. that's my mommy's phone number, he can call my mommy. maybe she'll yell at me. of course she died 45 years ago, but you never know. >> you never know. >> not with carp. >> never know. soon enough we'll have a simulation. she'll answer that phone -- >> why not? i have video of my mom. >> plug it into the algorithm. >> okay. >> bundle rewski. >> yeah, i'm not saying that. >> why did he say that? as we go to break, we mentioned bonds. fitch now with an interesting report about the fiscal policy challenges facing the u.s. we will get some more fed speak, we'll get jolts, ism services in a few moments. ten year still trying to hug 465. don't go away.

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we all know what a crazy ride it's been on carvana. today rbc says after this controversial pullback, they call it, they upgraded outperform targeted 280, we do expect marginal balance sheet improvement going forward as the company illuminates a clearer path to real fcf. got a bunch of upgrade today. that seems to be the biggest mover at the moment. dow's up 143, and stock trade being -- trading is up next.

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to keep you cool and comfortable throughout the night. our smart sleepers get 28 minutes more restful sleep per night. it's our lowest price of the season on our most popular smart bed. save $1,000 plus 0% interest for 48 months. shop a sleep number store near you. let's get to jim and stock trading. >> puppies that were small, that are suddenly large, and what happened? they got a call from jensen wong and became partners. aurora innovation, self-driving technology. aur, here's the stock that's up 36%. the other day it was serins, another company, used to run intel and cbk which has got technology for autos. they're the one that we speak -- some people think it's better than siri in a car, open my car door, turn my heater on. we saw micron, this is back to the touched by an angel, and the

angel is the man in the sparkling leather jacket. >> it's no longer the series -- was it cvs touched by an angel? >> touched by an angel. isn't that the show for, what, fire country. >> della reese. >> fire country. >> people love those programs. that's why the networks are doing so well. they do doctors and police. dick wolf -- >> new chapter. >> still at it. >> he's great. he's always been great. >> how about tonight, jim? >> okay, you know what, i think that -- i want to jump into this, as i haven't before, into a deal about u.s. steel. so i have cleveland cliffs -- >> cleveland cliffs? >> throw in a bomb this morning. >> yes. he put out a letter interesting or a press release -- >> the whole time. this has just been -- >> he'll be able to respond because we're going to have -- we're going to have dave bird from u.s. steel joining us in the coming hour. >> all bases covered.

our team coverage -- >> yes. >> that's good. >> you should use some of what we have for that. lorenzo to respond next. >> how about i call him on the cornell thing? >> i didn't know -- i was in miami having a good time. i was relaxing there. >> good for you. >> thank you. nice down there. warm. >> it is good to be back all at the desk. see you tonight, jim. "mad money" 6:00 p.m. eastern time. as david said -- >> was there a stock we didn't mention? >> i don't think. >> company david burr itt and im services in a minute.

welcome to another hour of "squawk on the street." i'm sara eisen with carl quintanilla and david faber live as always from post 9 of the new york stock exchange.

s&p 500 is a little higher. it is health care for a change up 1.3% as the sector. materials, consumer staples, all the lag guards from last year are at the top of the market. energy, utilities higher as well. technology under pressure why the nasdaq is down a third of 1%. we are coming off of a strong rally yesterday. treasuries may be the culprit here. we are seeing higher yields across the board, the 30 year yield at the highs of the year, the 10 year at the highest since may and the spread steepening at the highest since may 2022, that's the difference between the 2 and 10 year. we will talk about it. 30 minutes into the trading session here are three movers we're watching. nvidia is down right now but did hit a new all time high following jensen huang's speech last night. we will discuss what's next to that stock. apple also trading lower, stock downgraded to sell at move fit nathan son, $188 price target.

the firm citing china concerns. we're also keying an eye on meta, scrapping their third-party fact checking program and implementing a community notes model similar to the one that exists on elon musk's x. meta also adding ufc's dana white to its board. very interesting. >> getting important data crossing the tape. let's get to rick santelli this morning. >> look at those rates zooming. what's going on? jolt. job opening labor turnover surging, we are expecting a number around 7 million, 750,000. 8,098,000. that is the biggest job openings amount going all the way back to may of '24. now, ism also pretty warm, we are looking at services, this is the pmis, 54.1 on headline, better than expectations, sequentially higher than 52.1,

54.1 would end up being the strongest going back to just october this year when it was 56, but that number was the highest going back to july of '22. prices paid, moving in the wrong direction. 64.4. well above the 57 we were expecting. well above the 58.2 in the rearview mirror. 64.4, how does that comp? that would be the hottest prices paid going back to february of '23. feb of '23. new orders, 54.2. exactly as expected. warmer than 53.7 in the rearview mirror. 54.2 ends up comping since october when it was 57.4. finally, services, employment side and this is important considering we have jobs fridays at the end of the week.

51.4, exactly as expected, but this is the only number that is sequentially lower than our last look. so 51.4, last look 51.5. so interest rates are zooming, you have hot prices paid, generally warm services and a very warm job opening labor turnover. we want to monitor how this may affect the ten year auction at 1:00 eastern, 39 million tens go on the auction block. sara, back to you. >> we will look to you for those results. thank you very much. rick santelli. i mean, that was a bunch of data about some of the risks we've been talking about, that the economy is in good shape and that inflation pressure is not over yet. rick highlighted that in the prices paid index. the fact that there were more than 8 million job openings, expected fewer than 8 million job openings. we know the fed pays attention to that rate especially between the job openings compared to the unemployed. so this suggests things are in really healthy shape and the fed is right to pause, maybe was wrong to cut 100 basis points.

>> there was a time where that number was the number that at least the fed chair expressed interest in the in the press conference. it explains what cook said yesterday that the fed can be more cautious on cuts. >> they have to be more cautious on can you tell us because they have to pay attention to these prices perking up. one of their mandates is inflation, the other thing they were worried about was weakness in the jobs market. this data suggests that there are still plenty of job openings. the initial jobless claims data we get every week also suggests that there's not a lot of firings, pressure like that. we will see. we get jobs later this week, the government jobs report, the consensus around 155,000 jobs added, though a lot of economists are higher than that. it's always been a good tell on the unemployment rate which has inched up a little bit, but we're still in the low 4% range on unemployment rates. things overall are really healthy. i'm going to add a few more charts to that mix which shows the good picture that we have here in the economy and in

sentiment. this once comes from katie huberty at morgan stanley. she does a proprietary index and it comes from all the sector analysts at morgan stanley, it's basically what they're picking up from their companies and the sectors that they cover and interestingly it did go into expansion territory in december, the index rose to 65 and you can see it there, similar to levels in 2018 and also amidst the reopening of the economy in 2021. i think it just shows ultimately that these companies are optimistic and also they asked in the survey, the analysts, will it translate into more hiring in investment and the answer was yes. that's the 62%. that was a good high number. so if you are wondering whether the good news can continue from corporates on hiring and that jives really with what we just got from jolts today which is why i chose t it's good signs ultimately. good news. >> i wanted to get your take on

the -- just the rate move, sara. i mean, the 10 year -- and it's by the way not just here, it's around the world. i mean, i think, right, japan, too. >> uk. >> uk. >> yeah. very different reasons perhaps, but notable nonetheless. i mean, as you take a look at the 30 year it's approaching as much as 5%. the 10 year -- >> we dove into this a little bit yesterday, that so called term premium which is the sort of extra compensation investors demand to get paid for longer term rates. that's rising a little bit on the view that, look, the fiscal picture is not all that great, persistently long deficits and difficulty when it comes to dealing with that, so potentially higher long term rates but also inflation pressure and better economy translates into higher yields and fewer rate cuts and all of that factors in as well into at least the u.s. picture. the question is can stocks rise

in an environment like that because rates are presenting a bit of a risk? there is this sort of good news is bad news moment which bank of america talked about today where good news on the economy, not to good news for the equity market if it's going to be sensitive to rising rates. here is the spending picture that they put out, they look at all of their credit card and debit card data. they are comparing the holiday season to every other holiday season in the past. the important thing here is that 2024 looks good, it's actually higher. where you see it tending down that's post holiday. so the peak is holiday, the two marks is thanksgiving and then christmas, hanukkah shopping, it's all trending higher than in previous years or at least on par with previous years, which have been very strong. again, another good sign. you mentioned the global rate picture and i do think it's worth mentioning that inflation came out 4.2% in december, on par with expectations but also a jump from the 2.2%. core is still elevated there. so there is still this nagging

inflationary pressure. it was a global phenomenon all along, we focused a lot in the u.s. about it. we're going to talk to treasury secretary yellen tomorrow in washington about all of this. one of her chief missions has been to fight inflation and defend the biden administration's stance on inflation which a lot of people think is ultimately why he lost the election, part of the reason. not he, but kamala harris, the vice president. so the inflation story is continuing. we're going to talk to her about it. >> looking forward to that. these exit interviews, lina khan had his earlier, now yellen and perhaps others to come. >> it's january, inauguration is less than two weeks. nvidia, the shares are a bit lower, did hit an all time high yesterday, ceo jensen huang speaking last night about the massive opportunity in robotics. take a listen. >> the chatgpt moment for general robotics is just around the corner.

in fact, all of the enabling technologies that i've been talking about is going to make it possible for us in the next several years to see very rapid breakthroughs, surprising breakthroughs. >> our next guest was at that event, the ces in las vegas and he describes it more like a rock concert as than a tech ceo speech. dan ives joins us now. has a buy on nvidia, price target is 200. good morning, dan. let's talk robotics and autonomous technology. you say in your talking points or your review of the speech that alone represents another trillion dollars of incremental market opportunity that nvidia can now tap into over the coming years. how do you get to that number and how do you derive the value you are for i have had from it? >> i mean, look, to me i think jensen laid out the strategic vision for the coming years. when we look at robotics,

autonomous and i believe ultimately those are going to be some of the biggest use cases of ai. what you saw from nvidia last night is they're not just going to be a provider, they're going to play a huge role in this sort of vision. obviously the autonomous side continues to be front and center. i think this is the next step. i think this is a snapshot of the future and you look at it incrementally, you go out the next few years i think the street is underestimating growth by 25%, 30%, which is why i think not just $4 trillion, you could be looking at $5 trillion market cap. >> underestimating growth by 30%. is it robotics? what's being underestimated so to speak in terms of the growth for this company? >> i think one it's blackwell, which is from a demand perspective, we think 15 to 1 demand in supply in terms of what we're seeing. when you look at robotics and autonomous given the market opportunity that could ultimately be 15%, 20% of what i view as disruptive technology. i mean, that could be an

incremental 20%, 25% just to the top line over the next call it two, three years. i think that to me was the sort of watershed moment last night. it's jensen laying out nvidia -- it's not just about blackwell chips, the new oil gold, it's about where this is all going. we believe autonomous and robotics, that's a huge part of the fourth industrial revolution. >> right. so what does a chatgpt moment in robotics look like, dan? what does that mean? >> i think physical ai. we've talked about robotaxi in october, i think we will be looking the next two, three years robotics is not just going to be from ces it's going to be real and i think it's something that's going to play out factories, in consumers and households. i think a year from now we starting to more advanced prototypes to something that's going to become a reality. i think that's the key here. we are still in the early days

of the ai revolution. there's only really one player, i mean, it's nvidia's world, everything else is paying rent. that was a flex the muscles moment from the godfather last night. >> what about what i was just talking about, dan, which is higher yields and the fact that all of those stocks are down today? i know you're excited about the fundamentals and innovation but does it make you question valuations when we're seeing a rate move like this? >> that's the push and pull and i get it, but my view, sara, is that we have $2 trillion of ai capex the next three years and even when you look at tech, look at microsoft going to 80 from 44, basically doubling their capex, you look at numbers, you could see valuation but i think it goes back to i think earnings and ultimately top line growth for tech is being massively underestimated and that's where the growth is. this revolution is not going to be stopped in a 10, 20 bit move

on the 10 year. >> dan, if you're right and this is that chatgpt moment and we're seeing the physical manifestation of ai come to fruition over the -- let's call it the next few years, what else do i want to own as an investor? what other companies are going to benefit enormously not just nvidia but are there others in your coverage universe that benefit from this seminole change. >> i think front and center will be tesla when it comes o optimism, that's not even valued here. i think it's going to be the software players that play in here. i think palantir is going to play into robotics, the traditional software names are going to more and more focus on this. look, microsoft, amazon, google, especially with khan gone at the ftc they are not going to it around, m&a will accelerate, you will see big tech going after robotics in 2025. >> one more theme to talk about in the weeks and months ahead. dan, thank you. as we head to a break let's

give you a roadmap for the rest of the hour. a major makeover at meta eliminating its fact checking program, shift to go a model similar to elon musk's x platform and also adding a surprising new board member. plus could adding cryptos to your 401(k) plan help boost your returns? new strategies that employees might take to maximize their retirement plans this year. and the ceo of u.s. steel joins us after filing the lawsuit against the government and cleveland clifts. big show ahead. "squawk on the street" will be right back after a quick break. nors (traffic noises) . (♪♪) . . the road to opportunity. is often the road overlooked. (♪♪) at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts.

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get the 5-year price lock guarantee, now back for a limited time. powering five years of savings. powering possibilities™. your reaction to the decision, you called it shameful and corrupt. you're clearly angry with the president. explain why you feel this way. >> well, it's very clear that he tainted the process of cfius, the committee that decides whether or not this deal has any national security risks, of which there really are none that

couldn't be easily mitigated. from the very beginning he made it very clear that he was a union man, that he was supporting the international union and he didn't give the opportunity for cfius to fulfill their duties, fulfill the due process of cfius. we all know cfius is supposed to be a robust process, we know it's supposed to be confidential and it was neither robust nor confidential and that's largely because he decided before this even started that he as favors to the union boss for votes, he was willing to taint the process to get what he wanted for those votes and didn't let the cfius process play out, as it is supposed to play out. >> well, do you have any evidence for why the -- why you say the cfius process did not play out as it was supposed to play out and why you were denied due process? >> well, he started out with the process that said it had to be american owned and operated and

there is nothing in the cfius process that says it has to be american owned and operated. he said there were supply chain issues of which there really are none that can't easily be mitigated. said there were national security issues over which there are none. in fact, it strengthens national security, it strengthens economic security, it strengthens job security. in fact, grows the business. this is a fabulous deal. can you imagine somebody investing in the united states, billions of dollars, and then above the basic labor agreement billions of dollars more to make this company fantastic. this is an amazing deal, but it didn't get the chance. it didn't get the chance to go through the process in a robust way and was in effect decided early on that it shouldn't succeed and it was delay after delay after delay until they finally ended up canceling. >> i do want to clear up something that has been out there as far as those who are cynical and wondering why you're

fighting so, so hard on this deal and that is it's in your best interest to get that deal done. that $72 million golden parachute that you would get if it were sold. i know you were questioned on capitol hill from the senators on this. i mean, how much of that is a motivation factor for you? >> zero. the motivation here is to do what's best for our company, our country, our employees, our workers and to, in fact, do what's best for the planet. there is no doubt this is a fabulous deal for all stakeholders. people just need to spend a little bit of time understanding it and once they do understand it, they will see that you have a great investor willing to spend money in the united states and grow this business profitably to the benefit of the workers and the communities in which we live and work. it is a remarkable deal and that's what we're trying to do. we're trying to right the wrongs of this president and make sure that cfius is actually followed.

the process has been corrupt, i know it, you know it, i mean, let's face it, god knows that this process has been tainted from the very beginning and we need to fix it. this should not have happened. >> david, it's david faber. you're not just suing the u.s. government, you're also suing cleveland-cliffs of course who i would assume and you allege to have been part of this sort of process to the extent of tortious interference, suing them under rico. what is it you're seeking here? are you looking to impair cleveland-cliffs and get another shot at it this? >> our goal is simple, we want to close this deal with nippon steel. this is the best deal for our workers, community and country and we need to get it done. >> will you get a second chance at cfius? is that what you're hoping for? >> what we want is for due process to work and obviously we have a new president, that will

take a fresh look at this. we understand what his current views are, but he is a smart guy, he has the opportunity to take a -- have fresh eyes and do what's right and i believe strongly that he will. i can emember march 1, 2018, sitting at the table with him when he put the tariffs in place. this guy cares deeply about the workers and he will take a look at this and see how this helps make u.s. steel great again and frankly nippon is going to pay for it. >> so you think -- all right. let's assume you -- i mean, you win, you get another second bite at the apple and cfius. do you think trump who has said he opposes the deal, do you think you can change his mind? do you have any plans to speak to him? >> i welcome the opportunity to speak with him. you know, i had obviously during the tariffs the first round in 2018 spent a bunch of time with him. now that he's president-elect and ready to be president i welcome that opportunity and i do think what will happen is cfius -- if actually the cfius

process worked and people did their job according to the law, the president doesn't have a say. let's face it. but the president can step in now and undo the wrongful, shameful, corrupt actions of biden. let's face it, i think this -- this president knows a little bit about biden's behavior. he's been through a lot and he's had to overcome a lot and he could probably sit in our chair and say i know what you guys are going through. >> yeah. >> he respects the rule of law and that's what we expect him to do. >> cleveland-cliffs would say trump cares about the american worker and nippon is going to get rid of jobs, they're not in favor -- i mean, you've heard it a million times. >> and it's nonsense. it's nonsense. nippon is going to invest this kind of money and get rid of jobs, in fact, spend a little bit of time reading the national security agreement, there's more belts and suspenders on this thing than any agreement ever before. and just remember cfius has

never canceled a japanese transaction in the history of cfius. >> yeah. >> never. this transaction creates jobs, creates job security. we hear all the noise about, oh, they're going to ship slabs in. okay, that's mitigated. tle won't do that and you will have an independent audit ensuring that doesn't happen. every one of the issues that anybody raised has been easily mitigated, but, you know, when you have cfius that won't even take the time to engage, they've been told not to have a discussion with us, they haven't even given us feedback on the write-ups that we have provided and just meet with us to check the box, giving the inn pollution that they have a process. all of this will be revealed and we look forward to the truth being told. we've been the truth ellers from the very beginning and we look forward to people hearing all of those truths. stay tuned. >> well, cleveland-cliffs has

responded in a statement last night since david brought up that one and they say that nippon steel and u.s. steel continue to play the blame game in a desperate attempt to distract from their own failures, the lawsuit they say represents a shameless effort to scapegoat others for u.s. steel and nippon steel's self-inflicted disaster. u.s. steel executives didn't get their personal payouts now it is clear they have miserably failed the shareholders they say they work for. they are lashing out with petulance as a result. once again bad course of action. they're going to fight you. >> bring it on. we have the truth on our side, we are confident that this process was interrupt and we will prove it and we will prove that there was a strategy with cleveland-cliffs and the usw to come after us with usw giving all their rights to cleveland-cliffs. you know, theres a name for this kind of thing, it's called a merger or murder strategy

because we know that if we combine cliffs and u.s. steel, there would be monopoly. so what does that mean? you have to carve it up in individual pieces, right? because there's no way this could get through antitrust when you have as much as 90% of the mines under one company, 65% to 90% of auto, all of the electrical steel underneath one company. i mean, it's just nonsense. the nippon deal is the best deal because it keeps the company intact, it keeps the headquarters here, it creates jobs for workers. it doesn't carve the company up in individual pieces and, by the way, it was the best value for stockholders. we know that. >> david -- >> we just say bring it on, let the lies come, we have the truth on our side, we have the facts on our side, we have the law on our side. when you have the facts wand the law on your side, you pound the facts and the law. if you don't you will just be pounding the table and that's what we're going to hear from people that are against the deal.

bring the facts, bring the law. >> we've covered it all along. some other points here, though, this could go on for a while. you have a merger agreement i think that expires in june. do you think you're prepared to extend that merger agreement if, in fact, given your confidence -- >> we're going to do whatever it takes to close -- we believe we can close it faster. we have a new president in the white house. we understand very bright guy, businessman, he will take the appropriate actions, we believe, to make u.s. steel great again. and actually have an investor pay for it. think about that. we're having -- >> you do have a new president coming in who has a long history of getting in front of agencies. i'm curious how you think biden's comments were original in any way. >> please explain, carl. i don't know what that means. >> in other words, his comments about cfius do not set some new precedent about getting in front of an agency that's going to have some oversight.

>> do you mean biden? >> yes. >> binden basically tainted the process by telling the people at cfius some of his direct reports, you know, cabinet members how they should be voting. so he did taint the process and it didn't get to have due process. that's the problem. cfius is supposed to be an independent body. it was not independent. if it was independent, due process would have shown this was a great deal that strengthened national security, economic security and job security, full stop. that's what this transaction would show. any reasonable person would understand that. >> david, if this deal goes away -- understood. if this deal goes away, though, if you fail here to win and trump doesn't reverse this decision, would you be prepared to try to negotiate a deal with

either cleveland-cliffs, who still wants to buy you, or, you know, there are potentially other potential buyers, at least i think i'm aware of one that may be out there, although, again, not clear it's a full company deal. would you engage? >> i'm not going to speculate on that because we believe -- we live in a country with a rule of law, why don't we follow the rule of law? why are we not following the laws of the land? we're sending a terrible message to allies around the world -- allies around the world that see this and say, what is this nonsense that's going on here? you know, the people in china are going, wow, they're obviously -- they want this deal to fall apart. nippon is number four in the world, it will be number three after this, ruington number two. we have somebody that can compete with nippon and it will be u.s. steel cooperation mind, melted z and made in the usa, headquarters in pittsburgh. absent that we will be with our strategy of what we call better

not bigger. we don't have the investment and nobody else in the united states has the technology. now, people will say they have the technology, but if they had the technology and the wherewithal they would actually be making some profits, but nobody in the integrated mill space is better than nippon and they're going to do great things for the workers here -- here in pennsylvania, in indiana and all the places we do business. this is a remarkable deal and we just need to follow the law and we're going to make sure that happens. >> dave mccaul doesn't seem to agree that he wants good things for the workers. i'm not sure why. >> well, the local workers he needs to spend some time with the local workers and talk to his members. the members are for this. can you imagine? the workers had rallies to support this deal. did you see any international rallies at all? no. he has not engaged with the workers, he has not talked to

the community, he has not talked with the mayors. find the facts, get with the workers and they want this deal because they love their jobs, they're good-paying jobs, remarkable jobs, and this is the best future for them and they know it. >> what would have been mccaul's motivation to defy his overall workers? i mean, it doesn't necessarily make sense on the face of it. >> well, if you don't talk to your workers and you give all your rights to cleveland-cliffs on a merger and acquisition -- it's fait accompli. you gave all of your rights to a competitor. all of them. think about that. without talking to the workers first. why would that happen? that's a good question for him. why doesn't he want to talk to his workers? why doesn't he care about the community? >> david, final question from me. i've wondered throughout this, we've obviously covered it for quite some time, $7.6 billion market cap company.

if your company had been called acme steel do you think any of this would have happened instead of u.s. steel? >> well, i can't speculate on that. the reality is this, if we were putting together a deal with japan, we would want to have u.s. steel and nippon, nippon means japan, right? two companies coming together to create jobs, to create economic security and improve national security. you know, it's amazing to me when you think about japan, we trust them with the greatest military technology, we have more boots on the ground in japan than any other country than the united states, we trust them with the joint strike fighter, the patriot missiles, but we don't trust them with a steel company? and somebody has to explain to me yet what are the national security risks. when they talk about supply chain, i say they're going to shut down facilities here that are here and making money and performing well? they're investing in them to make them better. to make the planet better.

they are the best at the integrated mills. if anybody refutes that, we will go head to head with them. they are remarkable and they're doing the right things for the united states. >> there is an argument that japan has decades' long history of -- like what china is doing, over capacity, harmful steel dumping into the united states, destroying american jobs. these would be the counterarguments to what you just said. >> yeah, i know, we always like to go back in the history. there was this thing called pearl harbor as well. in recent years it's been different. there's another easily mitigated thing. basically we will follow and the national security agreement, we will follow the u.s. steel approach with u.s. citizens audited by u.s. citizens that are independent to make sure that there aren't any trade issues. again, so many belts and suspenders on this, there's no way for this not to be good for the united states.

so all of these things that were raised, asked and answered, we just like people to sign the national security agreement and get on with this so we can start investing in our communities and create more great jobs for these people that expect it and frankly they deserve it. >> but so much political push back, your own senator john fetterman, your own governor josh shapiro, both of the presidents -- both kamala harris and donald trump who were running for president and president biden, everybody is against this deal. >> well, the issue is the usw, they decide with the usw before they get the facts. get the facts. the usw has misrepresented and tainted this process as well. if they get the facts, they will understand what's real. can you imagine breaking

solidarity with a local union not being for -- with the members not being for this because they didn't even ask. we have people that live near where our facilities are, all they have to do is walk across the street and talk with the members. just because a union boss says it is so doesn't mean it is so. get the facts. the truth sets you free. we are the truth tellers and we look forward to this thing concluding with nippon steel being the investor in u.s. steel so that we can get on with running this business and creating some great jobs for the future. growing this business for the future. >> and if it doesn't i know david asked if you would entertain other offers, but if you are a stand-alone company what will that mean? will we see layoffs or plant closings? >> the strategy we were on, remember, we've performed well.

i can remember when i joined we were losing $2 million a day for five years. we have made as much as $11 million. we've performed extraordinarily well. we are on a strategy that says better, not bigger. we pursue high margins. on the integrated mills we have nearly double the ebitda margins versus the nearest competitor. we compete favorably with the mini mills. but when you have limited resources to invest, hour he going to invest those resources with the best returns and when you do that and you don't have the funds or frankly on the integrated mills the capabilities with the innovation that nippon would bring, you basically go a different direction. we have a strategy, we say best of both, best of the integrated mills, the union facilities, best of the mini mills which are the non-union facilities and we basically will pursue those that are the most effective and the

most efficient and you don't have enough money to go around everywhere. so you invest and that investment that nippon would bring is so superior to anything else. and the key point here is they bring the technology on the integrated mills that we would have to spend far more. they will bring engineers here to transfer technology to the united states, to us at u.s. steel to make our facilities better. i mean, this is the ultimate no-brainer. some people call it friend shoring. it's hard to believe we haven't embraced this great ally to invest in us and make this company great. we will pursue the better not bigger strategy but with nippon it's better and bigger. >> bigger. more determined than ever, dave. thank you very much for joining us and taking all the questions.

we appreciate it. >> thanks for having me. we're going to see this to the very end. we are committed to closing this transaction as is nippon. it's the right thing for our countries, it's the right thing for our community and it's the right thing for our workers and if people take the time to understand it and talk with the people, they'll understand it very clearly. we've got to get this deal done with nippon steel. >> well, continue to keep us posted. now the legal battles play out. dave burritt, ceo of u.s. steel, thank you very much. >> thanks for having me very much. >> clearly pretty determined to do this. says the facts are on their side, they want to expose the truth. >> i think we should point out how extraordinary this is to be suing the u.s. government, suing cleveland-cliffs under rico and for tortious interference. it's far -- it punches far above its weight so to speak in terms of market cap and everything else, not to mention the precedent it may set. we will see how long this drags out and he clearly seems focused

on sending a message to donald trump, i think, and hoping for trump's intervention in a positive way. >> negotiation. i mean, there is a deal to be made there, right, with the unions and he says -- and in the statement that burritt first put out reacting to president biden's order he said we need a president who knows how to make the best deal for america. >> again, we had this conversation regarding visas a few days ago, how core with your core principles? can you create a big carveout for japan when you are promoting an america first agenda and putting up all kinds of trade walls around the country. >> but that said this is a deal, carl, in which -- i don't need to say it over and over again -- conceivably for a company that otherwise will be hobbled. burritt wouldn't say that. >> better not bigger. >> and u.s. manufacturing not getting rid of jobs. listen, it's been curious all along, i think we both -- we've all shared that in terms of me watching this deal and what the

real opposition was on the national security level. yeah, we've dumped, certainly, and lorenzo has incredible, lorenzo at goncalves has a lot of influence. >> also he makes the case that japan is not so clean when it comes to the steel industry and there is a national security case to be had here. i do think, though, the fact that biden has come out publicly so many times against it even before the cfius process had a chance is what they feel like they have grounds to fight. although i do wonder what kind of uphill battle it will be legally. the president has the authority to make the order and he did that. >> they drew a good judge in pennsylvania, good in the sense of potentially favorable to them, a trump appointed judge who is pro-business conceivably and not necessarily pro-union. again, you never know with these things but it will extend over some period of time and they demanded a jury as well as you know from the filing. going to be fascinating. >> fiery interview.

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keep an eye on shares of meta this morning, its shaking up its board of directors adding ufc's ceo dana white to its board. interesting move there. separately, the company also announced that it is scrapping its third-party fact checking program to, quote, restore free expression. it's now moving to a community notes model, that's similar to what you see on the x platform. ftc chair reena kahn was on "squawk box" this morning, she responded to those changes. >> 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 laws and the anti-monopoly laws, right? i mean, 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 gatekeepers over who gets hurt and who gets to speak. >> sounds like you are not a fan of what meta is doing. >> look, i think we should have an economy where the decisions of a single company or a single executive are not having extraordinary impact on speech online. >> that was lina khan. when i think about that single executive i don't necessarily think about zuckerberg, i think about musk. >> i think it's interesting that zuckerberg and meta sort of separately than this conversation on antitrust is moving to the community notes and bringing dana white on the board. >> yeah. >> this is trump effect in full force. >> totally. >> just the changing mood and dynamics at these corporations it's happening really fast.

>> indeed. we didn't even get to the story about mcdonald's in reuters deemphasizing diversity initiatives in their head office. corporates have to work in a political box and they are adjusting. that's one of the -- it's one of the things that makes them the most nimble companies in the world. >> they are. i would argue also with companies like mcdonald's and walmart before that, this was already in the works. this has been going on. the pendulum has already been swinging a lot of these diversity pledges and programs were coming to their end dates and were fulfilled and met and so they were looking at bob pisani going forward in terms of changing that anyway, but no question i think that the political mood and the sort of anti-woke movement is helping speed it up. >> which is why costco is another interesting example of fighting the trend. we've talked to robbie star buck on the show the last couple of months. >> he's claiming credit for the mcdonald's thing but i understand a lot of the mcdonald's program -- they say that in a letter to their

employees that this was already under way. >> speaking of the new administration, president-elect is set to speak at the top of the hour from mar-a-lago about the investment in the u.s. obviously reconciliation, probably field some questions on tariffs and maybe canada and the cabinet picks which will begin some hearings next week. we wil hcoen le sn ivasoo ase begins. -what've you got there, larry? -time machine. you gonna go back and see how the pyramids were built or something? nope. ellen and i want to go on vacation, so i'm going to go back to last week and buy a winning lottery ticket. -can i come? -only room for one. how am i getting home? sittin' on my lap like last time, ronald. fine, but i'm bringing this. [ whirring ] alright. or...you could try one of these savings options. the right money moves aren't as far-fetched as you think. there it is. see? told you it was going to all work out. thanks, future me.

copper prices have had a great start to the new year, but they're still trying to make up for steeper losses from last year. and the base met al could be in for a wilder ride in the coming months as trade and tariff policy confusion lingers. one trader is going to lay out a plan for how to trade it in a risk-managed way. tune into our market navigator segment on "power lunch" to find out how, 2:00 p.m. eastern time. r swingin' by, carl. no problem. so, what are all of those for? ah, this one lets me adjust the bass. add more guitar. maybe some drums. wow, so many choices.

yeah. like schwab. i can get full-service wealth management, advice, invest on my own, and trade on thinkorswim. you know carl is the only frontman you need... oh i gotta take this carl, it's schwab. ♪ schwaaaab! ♪ have a choice in how you invest with schwab. we mentioned a moment ago we're going to hear from the president-elect at mar-a-lago in a few moments. eamon javers with a bit of a

curtain razor on what he might talk about. >> carl, that's right. what we're expecting now according to a source a familiar with the president-elect's remarks is the announcement of a $20 billion investment in data centers in the united states. this is a new investment that the president-elect will tout as coming to the u.s. economy. it's $20 billion for data centers that will be across the united states and the i'm investor is the chairman of damack properties an emirati billionaire, somebody close to the trump family and organization for a long time. he has partnered with the trump organization in the past for trump-branded properties in the middle east and now according to a source familiar with the remarks we're expecting the president-elect to announce here in just a few moments that he is investing $20 billion in data centers in the united states. we will wait for the official announcement here, the official details, but that is what i'm told we should expect in the remarks. also we do expect the president-elect will take some

questions here, so that could range to a whole host of topics, in i go from what's going on in canada, what's going on in green land and across the world, guys. back to you. >> appreciate that. a bit of an echo of one of the last pressors. despite today's weakness in the markets bitcoin off to a strong start to the year. even as the crypto continues to rally today notwithstanding there's still skepticism among advisers if investors should be adding cryptos into their 401(k)s. >> inflows and last year's rally hept crypto become one of the fastest growing categories of exchange traded funds. the most popular, the i shares bitcoin trust etf blood over $50 billion in total assets. crypto is a small part of the 401(k) market, maybe not for long. the security and exchange commission's approval of bitcoin in 2024 was a key change for the industry and crypto investors

have new options in various types of accounts, including individual retirement accounts and brokerage windows for plan sponsors that offer a self-directed option for 401(k)s and employer sponsored retirement plans. views are mixed about how much crypto to add to retirement savings or if it's wise to add any at all. some financial advisers say crypto should be a part of a 401(k) plan because it's a noncorrelated alternative asset class and hedge against the devaluation of fiat transactions. other point to volatility and risk as reasons to be conservative. since crypto can increase risk over time a nest egg could suffer a large loss at the right time. sign up for cnbc free money newsletter series at cnbc.com/money101. >> sharon epperson. i wanted to come back to a story we brought you in the last hour, was right before 9:00,

cintas making a hostile bid for uni first. it's a relatively small deal although rare to see hostile bids overall. 275 is the price they've approached them any number of times in terms of letters and discussions but one thing we failed to mention earlier that is an important component of any investor looking at this there is a control shareholder at uni first, the family there, the family owns 70.3% of the votes and so if you can't convince them to sell then you're not going to get a deal it would appear and so even with that very substantial premium and a belief on their part at cintas that they also have antitrust in their favor here, it becomes very much unclear whether you can get a deal done unless you get that family -- about 19% of the economics but 70% of the vote -- to vote in favor. meanwhile, in the minute and

a half or so we have before we get to the next hour, did want to share that shares of nvidia are down about 4.5%. obviously after a nice move yesterday the stock still up 6.2% for the year. of course, sara, we've covered jensen huang's most recent address at ces in terms of the future of robotics, not to mention that will be the presence of nvidia chips in the next generation of pcs for gaming and things of that nature. >> i was just looking at the market cap of cintas, not a sleepy little cincinnati company. >> big. >> not the size of nvidia but bigger than a uniform company that i grew up near. tesla, broadcom is down, not as much as nvidia but those have been the big winners. whether it's profit taking or holding back or watching this yield story on some of the mega cap tech. the s&p, though, is down half a percent but a little more resilient because there's strength in some of these other groups, the cyclical groups that

have been left behind today, like materials and energy and industrials and financials. >> meantime, that jolt number, services number did a number on the bond market. we will continue to with a much that as we are not done with data for the week. we will get claims a little early because of the thursday holiday and of course the jobs number on friday, david. >> yeah, a lot more market coverage coming at you with the s&p down, let's call it one half of a percent, nasdaq down over 1.1%. don't go anywhere.

good tuesday morning again. welcome to money movers. i'm sara eisen with carl quintanilla. we're awaiting remarks from president-elect donald trump in mar-a-lago, florida. he's expected to talk about an investment in the united states. we'll take you there live as it begins