we have weaker than expected jobless claims and adp in terms of hiring. we saw futures bounce around quite a bit. we are ending up with the dow indicated up by 30 points. as of the futures are up by 6. nasdaq is up by 23. risotto treasury yields headed out. we will talk about it through the rest of the day. join us back here tomorrow. now it is time for walk on the street. good wednesday morning. with the new york stock exchange. we have a steady pre-open ahead of the holiday for president carter's state funeral. we have a 10 year heads hitting 4.73. the vet governor seeing more cuts. we have unprecedented wildfires

in california forcing tens of thousands to evacuate. we are bringing you the latest live from los angeles. connected the bubble burst? we are looking at the quantum computing related stocks. useful quantum computers could be decades away. we are keeping a close eye on technology, struggling to rebound from the seller. palantir was one of the biggest gainers. it is down for a third straight day. amd is thinking after a downgrade over hsbc. was speaking with reversal of fortune for the highflying quantum computing stock. they are taking hits in reaction to the comments from jensen huang at ces. >> if you kind of said 15 years, for very useful quantum computers, that would probably be on the early side. to be said 30, that's on the lakeside. if you picked 20, i think a

whole bunch of us would believe it. what we are interested in, we want to help the industry get there as fast as possible. >> their success on whether we thought this was coming in the near term or not. >> we have the fabulous ceo next to him, the tagteam of them represents tremendous authority. the quote previous to that was enlightening as well. he says this works for small form factor. the lord form factor, which is automatic driving and robots does not work. not only is the later, is not useful. he says with work with the cpu instead of a gpu. that is an intelligence agent and it is too slow. what you have this talk, it is under the crawl at the moment. are gti, this is a two dollars stock from a few months ago. they did a gigantic 15 million

share offering. they needed the money. they had flat revenues for a long time. i don't think people are looking at these. 400,000 in revenue is a big loss. the etf has almost no quantum computing that has been bid up. i'm not saying that these are fraudulent, because willow, a project of google is pretty good. amazon was working on a program to help developers. i will use this in the sense that these companies, none of the companies have much in term of revenues. they are all losing a lot of money. it was the type of thing you see at the beginning of the year. we are seeing it in nuclear, and another area. it has been washed out before we can go higher. >> is like we did not point out any number of times as the stocks made the air moves up, about the quality of the companies themselves. i think we made reference, i made reference to the late mid 90s

when refrigeration companies became internet companies, so to speak and the enthusiasm with which they were briefly greeted, not to say that the announcement from google, only a few weeks ago about the willow chip and what was able to accomplish is not something that is worth paying attention to. we did point out many times that it could be many years. when you hear about it from the single greatest authority there is a this point in terms of the future of computing, you believe it. google stock moved up. i do not believe it at the time. too many people said that was the reason on the advancement. so yes, your point is a good one , particularly about the quality of the companies. people should be aware. we would not have discussed them, given the incredible small markets, but i was the runner-up. we were talking about 1000% run

ups in a short amount of time. >> i would argue that righetti had insider selling. that is probably the worst one. it is a great deal. they needed the money back in november. they have no idea what it really does. it designs quantum computers for superconducting processors. that is what jensen huang saying is not the bible. i went to lunch with him. he was more on the fence on quantum. he has done a lot of work. he clearly does not think it is an important technology anytime soon. a 20 year to 30 year timeframe is not anything that he is talking about that he is doing. i think people should sell the stocks and lock in their gains. have a fourth watch on what i am looking at. the nuclear power stocks are ridiculous. gv does not think they are anything until 2032. and then you have palantir and

nova. they are the only nes building. >> this is real technology. >> they cannot build them fast enough and they are very expensive . we have to clear out the new and says ridiculous stuff when it comes to quantum. and then we are ready to start a new. palantir had an aggressive seller. i got the outside yesterday, it was 37 pages. i've get a different one. there are three of them. one of them, he is a crack shooter. for this is neoliberalism. it gets better and better. he is the bond of intellect. >> on clearing out, is palantir clearing out phases? >> they have a fabulous rule of 40. they have great growth. don't dismiss that. they have a tremendous rule of 40. how dare you.

>> is our were doing? >> there we go. for you are like the quantum computer disregarding the rule of 40. >> it is cold in here. for i needed to be very cold. >> we look at the ubans. for 50 years from now, i will be going strong. as to the effort group, professors believe in it. it's not like indispensable. for our went back to quantum? >> i want to know more about palantir. >> it is tremendous. for this was a stock trading at 50 years for the revenue. it had a great last quarter. for the revenue growth was great. you were in the room when he spoke. will you please show some deference wives for maybe the other thing to mention regarding jensen are the comments about blackwell. the

scaling wall? more confidence, we got that here out of mattel as well. we look at the concerns that we had in the back half of last year are not as warranted. >> over and over again, the cfo and jensen huang was shipping in size. they were not shipping in science. people wanted to guide up. that was not the nature of it. the other analyst just goaded, they did compare to tony danza. >> they said they worked out together. >> yes, that is cool. they said, all right, really, is it long-term? i keep hearing when it is long- term is trillions, not billions, but trillions. it had a vicious reversal. that tells me that the 0 to 30 guys that are gambling. we saw from flutter and draft kings that the house is losing. just so beat them on draft

kings. stop with the actual companies. you don't know anything. for yesterday was the sixth time in a year where nvidia close time. as for the people that own it, is like the guy that introduced nvidia. that is a hand cream from procter & gamble. it is so cold, you should use it. as for that is nivea. >> they don't know how to pronounce it. for i.c.u.s that. >> that is not the point. for the lack of knowledge of what the company does, the most covered company in the world. for some of the analyst are good. some of them are just talking about the quarter. these are people that are bound by the four walls of idiocy. this is one of the greatest companies in the world. they don't recognize that nvidia are doing things that

are running circles. remember you need three. neither simulation and the trainer, and the actual. toyota will be one of the top ones. >> you think the growth path ahead is equal to what we have seen? >> yes, industrial revolution, over and over again. why can we believe? >> i'm not saying i am not a believer. >> they talked on the telephone garfield and alexander graham bell tries to get it into the centennial of philadelphia. only because the brazilian guys they represented. he says you know what, this could revolutionize all of how we do things. and the american judges were like who is this clown? >> that's what they said about alexander graham bell? >> i don't think anybody is questioning the evaluation of the time. >> does i mean we sell it at 100 times the limit. is for that stock on way ahead of itself. then had a typical head and

shoulders and it was a short. >> david understands. i find when you have the industrial revolutions, nobody believes in them. here is jensen huang. somebody said the other day, i see you like jensen huang. you guys are both dishwashers. i said oh no, i was of things i with people at nvidia . how is your dog doing? my dog died 3 years ago, should i sell the stock? >> you did say today that we are trading in tandem with what the yields are doing. for it is so boring. it is not boring when the 10 year hits seven. >> futures were up during the frank holland show at 5:00. for now we are a bit below. for with the rates right where they are. now somehow, between 430 and

6:00, the rates skyrocketed. after adp, they went lower. we are going to play this game, we are worse than the analyst telling us to sell. >> what game? as to the every ticket game. >> this is a one year high. for where were we during the 1990s? for i know where interest rates were. speech actually go back to the 1980s as well? for we are old. for that is my take away. >> i remember the 1990s. we had interest rates to where we are now. we had an incredible equity market. >> i.c.u. denmark, and i raise you alaska. to you could say that 4.7 is not just a reflection of concerns of inflation, but the vigilantes can be heating up. >> he mentions denmark, we are asking whether there is an insanity premium in the bond

market after the presser yesterday. >> i was going to go to navarro and say, are you guys going to slam no one orders? you want to click the jugular, that is they are ugular. >> that would be anticapitalist, what is it? do we prevent them from doing things? they do provide quite a bit of karma to us. for renie not going to let them sell glp-1's anymore? for that would be great for eli lilly. we are speaking to the ceo next week. >> are going to the j.p. morgan conference? for you don't promote me, i am fine. >> is the ceo of paychex. this is the argest payroll processor for small and medium businesses. here is what the fed did wrong. he got a fat advisor. the small business outlook, postelection, was astonishing.

the amount of hiring postelection was incredible. that was not in the markets. they said look, trump wins, we have to stop cutting? that was the key program, was small business. that is the backbone of the u.s. economy. we got them wrong. everyone got it wrong except for gibson. he was looking at the paycheck stubs he saw the hiring explosion. >> waller is out saying there is room to cut this year. that is even with tariffs. he does admit it will be hard to read. >> he should take a vacation. why do these guys and to talk every minute? what good are they doing to the chairman? the chairman ought to say hey, go speak of the rotary club and address what i think is the problem. >> you talk a lot. >> i talked to you. i mostly talk about whether he looks like pena or john

garfield, right? for you have been taken without lately. i think it is a longer hair. for that is what it is i have a good guy if you want to see him. as for to cut my hair? >> when was the last time you were here was that long wax [ laughter ]>> he has a guy for everything. i remember him. he had that crazy hair. to at the time, i can't speak about that. as for you beautiful girls. we will get to these downgrades with adobe and thers. we will talk about the wildfires in california. they are devastating the los angeles area. the pictures are unbelievable e apoach as the santa ana winds arprching 100 miles per hour. more on that in just a minute. . that's right james, it isn't. car, where are we going?

we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

♪♪ ♪♪ [paper flips] ♪♪

♪ ♪ with so much great entertainment out there... wouldn't it be easier if you could find what you want, all in one place? my favorites. get xfinity streamsaver with netflix, apple tv+, and peacock included, for only $15 a month.

waiting los angeles at the devastating wildfires in gold more than 2900 acres. chase kane joins us from pacific palisades with the latest. good morning. red good morning. in the last couple of hours, we have noticed the wind is picking up. we have had 30 to 50 mile-per- hour winds. there have been gusts in california about 100 miles per hour, even category 4 wind gusts is been reported. this is pacific palisades. this is the best house and highway. we have a couple of rows of condo buildings and an office building of the hillside here. this is overlooking the pacific ocean. if you see that orange glow between the buildings, within the last 15 minutes, and amber was picked up by these strong winds and dropped down between his buildings. there is a fire crew off in the distance trying to get in there to see if they can preserve either of these buildings.

at the top of the ridge line, we have seen another condo building burned. off to the left, several other homes have also been burning this morning. we were driving to the area last night and this morning, dozens of homes and dozens of buildings have burned. firefighters have not been able to give us a sense of exactly how many in total, or how big the fire is. the conditions are so bad. it is dark and the power has been shut off. the wind is are so intense. they are battling fire after fire. it is almost impossible for them to do anything in conditions like this. it is so dry and windy. los angeles is not gotten significant rain in nearly 9 months. this is supposed be the time of the year that we get rain to prevent things like this. or make things like this less likely. if you hear shouting in the distance, there are people that have had to evacuate their

homes. we are inside of a mandatory evacuation area. we are updating you on what is happening here. police are trying to keep people out and keep people safe as their more than 30,000 people under mandatory evacuations here in the palisades area. watching the video yesterday of the water drops from the air , it looks so treacherous due to the wind is. a lot of that is not even possible at this point, right >> reporter: no comment could be several hours before they can get the aircraft back up. that is the best weapon in an intensifier like this. when the winds are too strong, is too dangerous to send of helicopters. >> we appreciate you helping us understand such a difficult story. as to when i covered homicides and fire as reporter in los angeles, i lived in my car. i was uniquely able to go to any fire quickly. i was on one side of interstate 5, where his just north of i-

10. it was five lanes and five lanes. i was on the side away from beverly hills. the chief of the time since me, don't worry, we are safe here. it has never jumped i have a 5. and then i saw the santa ana winds, it jumped i-5, 10 lanes, it just jumped in. i looked at him and i said, what we do? he said, it is every man for himself. it was not unlike the mangled fire. it is so frightening. they can leave. people think it is static. it explodes. it does not just light up and burned, it explodes. that is what we are dealing with. people recognize, unless you have been in a real fire, you lose all perspective. it is the scariest. for the most terrified i have ever been was in wildfire california. >> i want people to know that this is not a fire where there

are buildings coming down. this is a fire where you do not know where it will go. if you go 100 yards like that. >> it is a tragedy in so many ways. on the financial side, we will keep an eye on what that means. >> i feel terrible. >> we write a human life story, but i hate that. we are dealing with the premiums that are horrible. our thoughts are with the folks in california. we have more squawk on the street in a minute. your loved ones are getting older, and they need your support. care.com is here to help. it's an easy way to find background-checked senior caregivers in your area. and some piece of mind.

see why millions of families have trusted care. go to care.com now i had the worst dream last night. you were in a car crash and the kids and i were on our own. that's awful, hon. my brother was saying he got life insurance from ethos. and he got $2 million in coverage, all online. life insurance made easy. check your price today at ethos.com. at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you

to make them real. ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ ♪♪ at state street, we know everyone's trying to get somewhere. ♪♪ take the next step toward your future, by investing in the s&p 500 with spy. getting there starts here.

's since we are looking at the laggards on the india. we have an interesting second day of the high-profile downgrades. palo utla gets a couple. and it will get to the downgrade of amd. adobe is in there. merck as well. we'll talk about those names and some upgrades on the opening bell in four minutes.

welcome back to the man dashed to the opening bell. amd will be down. >> hs -- hbc is not my favorite. they are saying listen, we have a weaker roadmap. they cannot catch up to nvidia. they do believe they will miss the numbers.

this is one where, it was not unexpected. the stock does not look like the others. for let's get the opening bell on the big board. crypto currency platform, exodus is celebrating getting on the nasdaq. avenue ceo. we will wrestle with this range once again. we have around 5900 this morning. >> the people i deal with in the bond market are salivating over the idea that maybe you guess 5%. it is interesting to hear the perspective of those that have cash, but don't own anything. if there's money out there waiting for that level, people think there will be an overshoot. be aware that there will be real demand. >> in light of that, it is interesting to look at upgrades of our age. >> these are people want to position themselves for a selloff. the problem is, we have the

mortgage money and the number of mortgages being issued. they are all like -3. >> the purchase index is the worst since february. >> when you see the numbers really bad. when he'd inventory. does the fed misjudge? and they thought they cut, the rate would go down. is turning out to be a different way for housing to go down. there will not be enough demand. there will be an oversupply. things will come down and the sellers will press and the buyers will walk away. the traditional housing cycle that we could get that has rooted us here. >> the combination of the stronger dollar, oil is 75 and it is 23 since the first time since october. we have the yields what the options looking at 5%. >> i don't think anybody

thought oil would spite. nobody anticipated that oil would spike to 75. oil has been very cold for a long time. we have two governments right now running the country. >> soon to be one. >> that's true. you do census? whoever goes down to mar-a-lago, that person is important. i'm thinking about pfizer. as for the latest reports, not from us, but that the ceo of pfizer will pay a visit as well. >> he is very vaccine oriented. >> that's right. it is crucial in finding the vaccine during operation warp speed. >> you know who was warp speed? we found out? >> that was palantir. >> they ran warp speed. i spent a lot of time at the

doctor. president trump, present electron felt like he was a hero during covid. it's not like there cannot be something involved. by then spent almost no time with pharmacy ceos. he did not want to be seen with them. the same thing with a well. he did not want to be seen with them. it was always the same thing, the optics would look bad if we are in the room with you. that is not necessarily the way to get prices down. for speaking of oil, this out of exxon is interesting. for we are looking at lng trading. as for i to tell you, the lng buildout has been halted did what president biden did. that would be turned on immediately. there has been a natural gas pipeline that opened that will allow much more oil to flow. i could change things. the lng buildout was thought to

be a geopolitical event. we could supplant says. that did not fly with president biden. he did not think that was important. he said that this is very leading. we will get a different policy very quickly. i think natural gas will quickly. to go back to 2? >> we are in the shoulder months where you don't know if things will spike. there is a surplus of natural gas in this country. i would not be surprised to see that going to 2 and change. >> there is the oil and gas conference. we had some comments yesterday, mike werth has something sold to chevron. there is a big dispute with exxon mobil. it will not be

resolved anytime soon. they are going to arbitration over the right of first refusal in terms of the change in ownership of diana. after talk about exxon, as they run that, before the discovery of the country, gdp per capita equivalent of jordan. now it is greater than mexico or brazil. i am quoting john has here. >> that is a big country. >> they are talking about 11 billion barrels equivalent of discovered resource. he talks about exxon mobil being conservative. that is getting bought. that way to close the deal until they resolve the dispute, which has says it will be resolved in their favor. it

comes down to a handful of sentences in an original contract. >> you think it will go even longer than we thought? >> i to my notes, since it has been a while since i checked in. i think we are still talking summer of this year. >> it is hard to model with this. chevron has been hurt by it. for exxon closed the deal, pioneer is done. for john has his baby on the board. as for i hope that is a reversal. that was meant data and at hawks. there is no place for that in this country. for he was fixing the price of oil in the world? honestly? what is he? like lex luther? >> no, there is only one. >> i know. for staging of contentious things, what you make of u.s. steel's comments yesterday?

>> look, u.s. steel is saying there is a rico case to be built and a racketeering case for they are calling for the justice for to look into this. >> we did hear from the ceo of u.s. steel and a lengthy interview. he was pulling no punches. >> i don't think there is a rico case. we charge someone that there is a rico case, i remember never said that, let's listen to this. the rico case means a jail time. it is an incendiary charge. u.s. steel is not the justice department. an aggressive prosecutor would pick up on this. >> let's listen to what he got on "mad money". the statement coming from the ceo of u.s. steel called

the president of the united states corrupt. as an american. i feel offended. this is just absurd. at this point, tariffs are coming. president trump would change the backdrop of the entire industry. i am not so sure, if the best, is the combination of this and u.s. steel. as for what you mean by that? the expectation is, the deal falls apart, he worked so hard to make sure will, that he would be there to buy it? >> yeah the deal in canada. the stock has fallen and the prices change dramatically. we when he made his bid for u.s. steel, they said they would about four dollars, now i question whether they can earn a dollar. i think the forces of the actual market are there. that is the transshipment of chinese steel via mexico. i think the president, is electron will hammer mexico on

that. for that did not come up at all on the lengthy press conference. some thought that maybe he would be asked, given everything else about the approach to u.s. steel. that was not dealt with at all, yesterday. >> the eu defense things that the bid at 5%. renewables took a couple with no more wind meals. >> i think president-elect trump does not like when meals. he does like solar, provided it is made in america. i think that is an easy blueprint to follow. i think people are confused. i think geb is not. these are not working at all. the onshore was thought to be good business. there is an optical issue. i don't think president-elect trump likes how they look. >> that's right, he has made that clear. >> i don't know.

do you like how they look? >> it depends on where they are. >> there is one in the netherlands and one in the hamptons that looks pretty good. >> it is more of a wooden type. the ones out in nantucket, that is been the thorn in the side of the beach. as for an eye for oil wells are that much more picturesque. for i like the donkeys and the horses. >> yes, i do. i am mesmerized. >> and they prove that the whales are being disturbed, that would be a. i do love the whales. >> i do think the best star trek, that's right. >> i agree. as for as for solar, china the leader by far in this world. >> they can make them. they make them and they control the market. it is easy to say, oh yeah, it

is just harder to do it. i am just putting that out there. >> we have the next tracker and we have some stock that is huge. they make software that can make it so you get more sunshine. you can shift the panels. that means, presence, germany, they have 27% days that are sunny. you can augment your solar with this software. >> they own 85% of the market in china. >> cloudy with a chance of meatballs. you remember that? i do. i read that once my kids. for it is a key day for meta and the criticism that zuckerberg got. he was about the ebay listings. it >> the marketplace is huge. i thought that was a very good move. i did read it going up. people realize, unfortunately,

he did allude to ask. this community movement is so good. for ebay, this is the second wind for them. you have been on the ebay and paypal story for decades. for on the payroll, i was like hey? >> you are amazing. as for i did a documentary on ebay like 20, i don't remember how many years ago. the ebay effect. it is for that was prior to this company called amazon. as for our member when you about the 13th amendment on amazon. that was a chilling moment. >> i don't know what you're talking about. >> that would want to advance slavery. >> i'm glad you mentioned that, reddick is from 99 to 180. >> this was one of the most underpriced ipos in history. people do not realize that it

model is terrific. they have more data than anybody. this is a fantastic a.i. play. you need to have this, you can train using reddit data. going back to nc, do i refer to peloton much ? yes. guilty. you look at the drug stocks, they are getting pummeled. look at mark. for everything else is getting hit. why? for cortisone. the expanded approval that i've been waiting for in china. i am frantically trying to get at this. we have the new drug approved for j&j. we have garda still expanded. for eli lilly is up. every day there's more research on the glp-1. we talked about the cornell study in terms of what people were cutting back on. morgan stanley, today, has the piece with people coming back

to restaurants, maybe not. for those a controversial perspective. it was a surprising take from a brand survey. we had a long piece as well from bernstein and the u.s. food outlook for 2025. we have them calling about the. as for they don't call that as a bottom. >> what matters the most is the fda giving us a good data. the fda is still looking at the bottom line on this stuff. >> that's right. we are looking at rfk junior as well. >> i had an intense interview with him. >> my wife hated it. >> nothing happened. you have a question and you answered it.

for what was his response? >> i have not seen you since college, that was probably not the way to start that. for i played on my mind many times. i realize, that was not necessarily mike wallace's finest moment. as for you wanted in the crowd and you did us proud. >> i'm glad you mentioned a.i. delta, with the new concierge rollouts at ces, they have powered companion, they report on friday. we look at the downgrade on adobe. they call it a lack of a.i. monetization. >> i like firefly very much. this can both products, the adobe products are so expensive. it is fantastic. any pro would never use canned. if they get taken up in the design schools in this country, it will be existential. that is a fantastic company. they are the gold standard.

people look for value everywhere now. they are cutting back on anything. there are people that just say, this is to ask and. even though this is fantastic. you can do a lot with it. >> yesterday, we talked about mna. everything i hear is we are anticipating a lot more, and add a larger market than what we saw yesterday. just given the level of dialogue , but action taking place behind the scenes. i don't have any names for you. what i failed to mention, when we were discussing this yesterday, this is a small deal, but it is possible. the company question is family control. 70% of the vote. >> they can do what they want. they can just say no. that is that. they control the board and the vote. >> did you see todd snider and what the ceo is saying? is similar to what we heard.

>> you have to get shareholders put pressure on the company. to talk about them at kroger. they are saying that they are competing against amazon, granger, and more online. and off-line, they are competing with walmart and costco, so they needed the heft. it's not like the old days when they were just competing with groceries. that is no longer just them. also on walmart continue to come up. no combined entity with service more than 2 million of the 60 million businesses. i do think todd has a good case. the problem is, is so what? >> our way back to us and toss now? >> it is up again. it is up 2.2%, despite the fact that the shareholder can simply say no thank you. what did i mention that albertson's is raising the guide.

>> they are back. i thought they were sidetracked. kroger did not get sidetracked. they are doing quite well. >> i don't know, some of these consumer names are making a comeback. >> barclays is up. i thought that was interesting. i thought they were floundering. i was wrong. >> i don't know. the parent company is not off to a good start. as for what is have to do with anything? >> why don't you look at cal maine. >> we do not do them or flutter. we have a lot today. we are south of 5900. the dow is down 140. the bonds are somewhat to blame as we got to 4.73. that is close to a 52-week high. you talk about the options activity. we will get some wholesale inventories with thirty-year action today. we do have some minutes at 2:00 today.

good morning we are committed to straight u.s. treasury department. we will be speaking with the treasury secretary, janet yellen, in her final interview. we have her thoughts on what has been an historic ten year as secretary, and on the future, what she expts fm ecro the administration , from inflation and the economy, and much more. 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.

dexcom g7 sends your glucose numbers to your phone and watch, so you can always see where you're heading without fingersticks. dexcom g7 is the most accurate cgm, so you can manage your diabetes with confidence. ♪♪ power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, 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. ♪♪

let's get to jim cramer with stop trading. we are looking at downgrades with soccer. i spent some time with the manager of soccer. people are worried that they overpaid for hostess. you cannot make these fast enough. the stock is getting hurt on this. this is part of what i regard as a reshuffling of this group. they do 0.4%. it is a well-run company. you cannot overrun assessments right now. it's for cal maine close to an all-time high. >> they seem to be not

realizing that you need that money to spend. x represent protein. the shortage of gop is a dog enough protein. they don't understand, right at the fulcrum of this was ex. you will not get better. >> it has become a political touch point, the price of eggs. >> how about tonight? for i was trying to quote for my friend lisa gill. we've been trying to get weathered as the vaccine stocks that are down, rather than the wall drug stocks. this is the most important conference that there is. that's when people introduce new products and talk about what they would do for the year. healthcare is under fire. i cannot wait to get there. it's for when you go? as to i'm going monday. i will miss my game on saturday. for i work for a company that

wants to do this and i want to cover it as well. >> are you gone all next week? >> i like to take the redeye. i have a suit that is good for. >> that is of your health. but the young man like you, take the redeye. >> it is tough in coach. >> i contemplate. the suit is an old saying you. for a solid one my polyester numbers? >> had a guy semis is $12,000. i said i can get 12 students without. you could get 24. is to yes, i could. for no repeat. we will see you tonight on "mad money". downtown is down 1.66.

do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had planned. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out

if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. ok guys, instead of getting weathertech, i saved a few bucks and got some cheap, foreign made floor mats. but they really stink, so put these on. ♪♪ really, gary? mom, i'm thirsty. don't settle for cheap, stinky floor mats. at weathertech we make our floorliners and cargo liners here in america, out of pure non-toxic american materials. dad, next time get weathertech. they don't stink! i'm on it. find out everything we have at wt.com.

good wednesday morning.

welcome to another hour of "squawk on the street." i'm carl quintanilla with david faber. alongside sara eisen from washington, d.c., ahead a big interview you don't want to miss. janet yellen talking all things fiscal spending, china, and exit interview. meantime, check out the markets. russell down 1.5% as the ten year is partly to blame. hits 4.73 before backing off just a bit. a busy day. we'll get a 30 year note auction. let's get to rick santelli. >> yes, carl. now on inventories. minus 0.2 remains 0.2. inventory being lower than normal can have an effect on

gdp. if we like at trades, the biggest increase in trade sales since february of this year, and the second best number of 2024. we do see a negative revision from minus 110 to minus 0.3. but we do want to pay attention ahead of legislation that could not only effect that, but trade balances, and trade deficits. in a 30 year, we reached a yield of 4.97. in the 30 year bond, we haven't traded over 5% since the end of 2023. and you're right. pay attention to that 22 billion reopen 30 year bond option at 1:00 eastern. sarah, back to you. >> yeah, a lot of focus on those bond options this week. thank you very much, rick santelli. just want to mention some of the other data we've gotten today. more good news on the jobs

front, at least when you look at jobless claims. we're not seeing layoffs pile up, in fact, quite the opposite. fewer americans filing for unemployment claims. down to 201,000 in the week. so that moves the four week moving average which sort of smooths out the volatility into a declining mode at 213. it's the lowest since april 2024. and it's more evidence of a strengthening labor market and business confidence. you could also look at adp, which did come in weaker than expected. this is the private sector read on jobs. we should note it, because employment only rose by 122,000 last month. that was the least in four months. as you can see in the breakdown, mostly in the services producing jobs like healthcare. not as much in the goods

producing which only added 10,000 jobs. we're expecting a number around 150,000 for the month. in terms of the number that the monthly unemployment report that we get on friday. here's the breakdown as you can see on where the jobs were and they weren't. manufacturing was down 11,000 jobs. overall, i'll just say carl and david, if you add in yesterday's jobs openings data which was very strong and look at the ratio of job openings to the number of unemployed people, that actually moved a little bit higher. 1.13 job openings per unemployed. there's the chart. so we're kind of back to pre- covid levels there. and you can see we've come down as the labor market has cool indeed a way that the fed has expected. but that tick up certainly is something that i'm sure the fed and economists will be talking about. about whether, you know, they don't have to worry as much about the labor market as they

do for instance stickier inflation. >> well one we're talking about this morning is 4.73 as carl said at the top of the show. i'd love to get your thoughts at the tenure. what is that saying? is there some element of that that includes concern overall about coming budget deficits and the lake? or is that simply a reflection of current economic conditions? >> i think it's for sure. because it's happening at the long end of the curve. it's happening in the 10 and 30 year yield. so the two year is more reflective of what's happening on the economic conditions and expectations for fed policy. and it's not moving quite as much as we're seeing in the long end, where as rick said, the 30 year is pushing 5% and the 10 year is above 4.7%, or was there this morning. concerned about longer term rates, longer term deficits, higher government borrowing that might happen under the current administration. potentially, higher inflation

as well. i think it's interesting that the tariff risk has been traded as an inflation risk, certainly in the bond market. all of those things coming to fruition. look, there's a lot of debt that needs to be refinanced. and one thing we're going to treasury secretary janet yellen about is they have issued a lot of short term debt bills. so when those have to be refinanced, that is at higher rates. and could potentially add to the interest expense and the debt burden. all of these trends no doubt something investors are looking at. also, who is buying all the debt? these serious risks that are coming into sharp focus. just in honor of the treasury secretary's outgoing interview here, guys, i did make two charts which i think are the highs and lows of the bidenomics legacy.

here's gdp. the fed started raising rates in '22. everyone expected recession, and we basically had 3% growth. that has been a positive story, and it's why all the recession odds went down. it's why all the forecasters were wrong on the stock market and the economy. she has been right. the down side has been the inflation story. if you look at cpi, no question about it. we have come off those super high levels in june 2022, which was around 9%. but we're not all the way down to 2%, and americans are still clearly feeling the cumulative impact of that. and the question is, how fast can we get back to 2%? what is causing this inflation? could the administration have done something differently, and what can we expect from an incoming administration that is threatening tariffs which could also be inflationary. the inflation and the growth story, front and center. for the bond market and for the treasury secretary. so we're going to be talking a lot about that, david.

>> that's a key issue today. b of a, no doubt if tariffs are imminent, the cutting cycle could be over. you've got a mortgage rate back to 6.99 this morning, david. >> yeah, right around that mark, that seems to be a key area for people who are looking to buy a new home. let's turn to the markets and specifically the quantum computing stocks. a few weeks ago, we wouldn't have even characterized that as a group. but now they are, and they're down sharply. this on comments from nvidia ceo, jensen huang. kate is here to explain. >> those quantom croupingm computing stocks down.

>> if you said 15 years for very useful quantom computers that would probably be on the early side. if you said 30, it's on the late side. but if you picked 20, i think a whole bunch of us what believe it. but what we're interested is getting us there as fast as possible. >> he also said nvidia will play a significant role. quantum computing uses q bits instead of what are known as regular bits. so basically can perform complex calculations a lot faster than traditional computers. if you check out stocks, names like rigetti. all of these down. in some cases 40%. the sector has been on a tear. rigetti was up almost 1500 percent last year. the rally is really reflective of this hunt for the next big

tech wave out there. a lot of investors chasing this momentum. not just jensen. there's a lot of people chasing this. and the terms of the promise there could help data centers, but some of those real world use cases have not materialized yet. >> i'm sure not the last we've talked about quantum in the months to come. kate rooney this morning. meantime, nvidia shares are rebounding a bit after posting their worst day since september. the semis are up to a pretty good start for the year, up 4%. the buy rating on nvidia, 175 target. i think it's interesting that so much attention on ces and the halo affect has almost been as powerful as the nvidia affect on itself, commentary about toyota. commentary about samsung, all coming out of jensen in week. >> yeah, certainly. partly it's what we've seen in

semiconductors over the last year or two years, right? nvidia and a.i. have been moving the entirety of the market and they've been pulling names that either are also involved in a.i. like marvel and broad com or names that supply nvidia. it's been a continuation of what we've been seeing, i think. >> we talk a lot about market concentration. this same dynamic exists within semis itself. you've got the sector at an all- time high. but only one in five i think over the 200 day. do you expect there will be a broadening in semis too? >> yeah. i think the problem is that you have a very robust spending environment for data center a.i. and then at the same time, we have a not so robust spending environment for almost

everything else. so whether it's consumer electronics, industrial applications, enterprise spend, they're all kind of lagging. and i think what's not helping that portion of the market is there's a whole lot of uncertainty around what we get with a new administration. so do you see tariffs that force a shift to manufacturing? and because of that uncertainty, it's hard for companies to plan. so i don't see things changing right now. i think a.i. continues to do well and everyone else kind of tries to figure out what's going on with the world economy moving forward. >> do you expect the tariff picture o clarify in, let's say the first half? >> i mean, i don't know. that's the problem. that's the problem with all these companies. they want certainty around planning, right? you don't want to build a new facility in mexico and find out that all of a sudden your investment isn't worthwhile, because you've got this tariff

penalty that's been applied. >> is nvidia the top of your universe at the moment in terms of favorites? >> nvidia is up there. i personally like taiwan semiconductor a little bit more than nvidia. but these are all gradations. >> and finally, we mentioned toyota and some of the automotive stuff. we've talked a lot about weakness in auto as an end market, do you see that reversing? >> i think that you need the consumer to reverse. so whether it's the u.s. consumer, whether it's the worldwide consumer, that you need more momentum there, not just for autos, but across technologies. a lot of the new things that the people are talking about, so autonomous driving for autos, really interesting can create these refresh cycles, but we need to see it starting to get applied.

so i think when you start to see both the better consumer and those technologies show up, that's when we get spending, a broader semi recovery if you will. >> matt, appreciate it. such a huge week as we've been awaiting these keynotes for a while. talk soon. matt bryson. thank you. meantime, firefighters are battling against that wildfire that's forced evacuations in the pacific palisades neighborhood in southern california. nearly 50,000 people now have been ordered to evacuate and thousands more have been told to prepare to leave. let's get back to nbc's chase cain. chase, we were just talking about not just the horrific pictures, but also the economic effect, which we'll have to come to terms with in the coming days. >> reporter: carl, i mean, yeah, anyone who knows this area, this is a prolific area. malibu is just a mile or two up the pacific coast highway.

the famous santa monica pier with that famous ferris wheel would be right behind me. we are in pacific palisades. this is the pacific coast highway. that's sunset boulevard. the sunset boulevard here. as these winds have just been relentless overnight. 40, 50 miles an hour sustained. we've had wind gusts at least a couple reported above 100 miles an hour. that's made it virtually impossible for firefighters to get a handle on this across any of these major fires burning in southern california, there's no containment. they're burning thousands of acres, but they're burning thousands of acres of densely populated areas. santa monica is partially under evacuation. it's just out of sight here. you actually can't see hardly across the pacific coast highway, but there's a couple of condo buildings there. we've seen embers and flames kick up. firefighters scrambling back and forth. they're bringing in firefighter

from as far away as northern california and arizona to try to support the efforts here. but really, until the winds die down, it's going to be impossible for them to get this under control. >> what is the threat to, you mentioned santa monica? obviously a lot of concern there as one might expect especially given a relatively dense housing pattern there. what is the threat at this point, or are the winds sort of going the other way? >> reporter: i mean, the winds are generally moving away from santa monica, but the evacuation does extend to san vicente boulevard. we drove into santa monica this morning, power's out through part of the area. there's more than 3,000 people without power. some of that is intentional, where they're shutting down the power in order to prevent new fires from sparking, and some of it is branches coming down and knocking out more power. the sun is up, but it sure

doesn't feel like it right now. >> okay. chase, thank you. >> how the local authorities are responding. >> sorry, sarah, go ahead. >> obviously -- just i know that there's a crisis there. and not to make it too political, but i saw that rick caruso, who is a successful businessman, unsuccessfully ran for mayor of l.a. was recently on a channel and said there's no water coming out of hydrants. critical of the mayor of l.a. and how the authorities are responding. what's your sense of how they're dealing with this? >> reporter: yeah, so rick caruso was talking about the ability to fight the fire in pacific palisades here just up sunset boulevard, where he owns the palisades village, a pretty well known shopping center. he was complaining that there wasn't enough water for firefighters to protect that property. what they have pointed out here is that this part of los

angeles is powered by water tanks, instead of a traditional underground line. so there's just not as much water pressure there. that's what he was referencing. but yeah, there have been political comments. when you heard gavin newsom out here, he was talking about president biden was out here helping us. there was no bickering or fighting, even though he didn't use the name of president- elect trump. this is just a heartbreaking, devastating, and frankly dangerous situation still. >> chase, thank you. chase cain, joinings, giving us a sense of what the things look like on the ground there, david. this is a tough one. >> yeah, very. as obviously was just indicated, very, very dangerous and so much at risk. obviously you start with people's livelihoods, their homes and everything else. as you might imagine, there are plenty of investors who are also focused in part, because as you need to, in terms of what the insurers would be.

you know, carl, these are very valuable homes that we're talking about in the pacific palisades region and others. so any number of people taking a look at some of the names, whether it be a state farm, a chub, and on from there in terms of what the potential losses could be given, just the catastrophic nature. >> meantime, socal edison cutting power for another 114,000 customers because of the wildfire risk. so you've got the power outages on top of all of that. as we take a break, shares of palantir in correction now. >> plus we're going to talk about the state of commercial real estate. the latest read from the ground. >> and tech coming off its worst day since mid-december but our next guest says it's

still worth buying here. he'll tell us why after a break. "squawk on the street" will be right back. don't go anywhere. dexcom g7 sends your glucose numbers to your phone and watch, so you can always see where you're heading without fingersticks. dexcom g7 is the most accurate cgm, so you can manage your diabetes with confidence. ♪♪

welcome back to "squawk on the street." the nasdaq tech overall coming off its worst day since december 18th, as yields remain elevated. our next guest remains bullish on the sector. keith, chief investment officer

joins us now. keith, i know you've liked tech for a while and remain bullish, but ten year yield at 4.7, does correction period that's really started back on december 6th that coincided with a lower yield. it really hasn't moved that much. really, the uncertainty factor -- >> keith, keith -- >> yes? >> keith, i'm sorry, i've got to cut you off, because your audio is echoing. so we're going to try to fix that and get back to you, so we can hear you. but clearly, you know, carl and david, the ten year move, it's caught some people by surprise. stocks never quite like it when you see this sharp fast move higher in the ten year and the

30 year move. especially when it raises questions about supply and who is going to be buyers of treasury, and long term deficits and what's going to happen with the new administration. that feels like it's lagging. when you look at technology, which is based on future valuations for profitability, there are questions. carl, you mentioned the halo affect from nvidia at ces, it's coinciding with moving rates. >> bond volatility, highest since november 19th. i would note a couple comments about valuation, this week along from howard marks and governor cook on monday, saying in some areas of the market we might be priced for perfection and vulnerable to a sharp decline. >> yeah, i think that concern certainly gets raised at this point. sarah, you raised it as well, just interest costs also, with

the expectation rates would be coming down. no such luck at this point. obviously an overall focus on the budget is the debts we're paying on roughly $37 trillion. >> i know, it's crazy. ever since the feds start the cutting rates they've gone on a one way train higher. keith, you've fixed your audio. on tech, we're just wondering if the 10 year moving up to 4.7, the 30 year moving to 5%, if that changes things as far as how you look at valuations around tech in particular. >> sure, sarah. hopefully you can hear me now. >> yes. >> i would say in general, our view is still positive. i think in the short term basis the market is going through a correction that began in late december. if you look at the s & p 500 as a whole, the market peaked back on december 6th. that's when yields had bottoms. i do think this is a year term headwind for the overall

market. you also had back in december, really high investor expectations. around you, we're having a reset of sentiment. we still think the primary is higher. you look at tech, the momentum is still stronger than the overall market. lastly, even though we've had a really good two years for tech as a whole, over the last three years, it's outperformed the market by 33%. if you look at the technology bubble period, it out-performed by 250%. we think tech is in a good position on an overall basis. >> is that why you think the market will not broaden out? a lot of other cio's we talked to expect earnings growth across the board. >> earnings growth is supposed to be better somewhat across the board, but the momentum is still with tech. so i actually think we're more in this period where large cap

likely continues to outperform the other 493 as a whole. now the other challenge you have with those higher yields is that one good thing for tech is they have a lot of cash in their balance so they get a lot of good interest on those cash holdings. if you look at cap holdings and other areas more sensitive -- also the higher yield is also keeping the u.s. dollar strong. i also suggest the u.s. continues to outperform international because the u.s. dollar continues to be a key driver of that performance as well. >> you don't worry about just concentration risk? the fact that it makes up so much of the s & p right now, that everyone is on one side of the boat? you don't worry about these things? >> i worry about a lot of things. i'm paid to worry. one of the main risks as you mentioned is we have the highest concentration of s & p

is the highest we've seen since at least the 1980s. if one company falters you could have that contagion with the other one. that is the risk. these companies have pretty good modes, and huge margins and the secular tailwind that's going to be where spending continues even if the economy slows down. so on a relative basis, we still like it. one thing we're doing is we're pairing that large cap and tech exposure with mid-caps that should benefit some of the policies. overall, large caps, mid caps, and then small caps. >> got it, keith, thank you very much for joining us, especially on another day where tech is lower. sarah, just a week into 2025, some of the biggest gainers in the s & p on the month. micron shares up 18% so far.

check out shares on instacart as well, rallying on news it's being included in the s & p mid- cap. stay with us.

welcome back to "squawk on the street." i'm contessa brewer with your news update. merrick garland says he received the final report from jack smith detailing why he tried president-elect trump. but will not release the portion that describes claims that trump ported classified documents. an appeals court is reviewing a motion by trump's codefendants to block that release. president trump today asked the supreme court to block his sentencing in the new york money hush case. arguing he should be protected by presidential immunity. the high court asked new york court to respond to that request by thursday morning so

the judge can have time to react before sentencing, which is friday. and president carter is lying in state at the national capitol until friday. the chances of a rate cut later this month now stand at just 7%. that at least is according to the cmc. what does that mean for real estate? we're going to discuss that and more with scott rechler. that will be in a minute. we're back after this.

welcome back to "squawk on the street." j.p. morgan is the latest company reportedly bringing workers back to the office five days a week. of course, that push to get workers back to the office in 2025 could be a tailwind for commercial real estate, especially right here in new york city. scott rechler has got a lot more on the state of commercial real estate market in this new year. happy new year. you know i've talked to you in

years past, whether it was 2024 or 2023, you certainly didn't sound very positive waiting for the storm to clear so to speak. the banks to decline in the value of some of those loans. >> i think what has happened is the federal reserve by using their rhetoric was able to get the markets loose. the stop markets up. the bond markets were open and the regulators sort of gave some room. so this storm sort of hovered around the coast, but never actually came onto the coast. during that period of time, you saw the big banks, they were taking reserves. people were capitulating on values. people were estimating where interest rates were. so i think '24 is the floor right now. '24, we're at this floor where we're now going to be in position to start dealing with these things, but it's not going to be as distressed as it was, because the capital has acknowledged the valuations.

we'll see transaction activity take place. >> we will. but we're sort of at the end of that, so to speak. >> i think people who waited in '24 hoping that interest rates were going to go low and save them are going to have a hard time surviving '25. for those who say let's go negotiate with lenders, be opportunistic, you can thrive in '25. we still have a challenge of all these loans. $2.3trillion of loans that have to be refinanced, the bulk of that over the next three years at rates that are going to be much higher than where they were originally set. >> you started a distress fund, i think it was last year. have you done anything from it? >> so we've, this year invested in 9.5 million square feet of

classic office space. we started by institutional owners, who just didn't want to be anything near office was toxic. we were buying it at discounted prices and going to the banks and renegotiating. buy great buildings, fix the capital structures and in places like new york, you get them leased. we work with organizations that say i see the demand out there, i don't want to abandon it. this week, we're going to buy 49% interest in a class a trophy building with an institution that says i want to stay in 51%, but i want to hedge my bet. bring in somebody bringing in good capital, to spend good money, not bad. >> have cities been smart about conversions to the degree that it's soaking up some of that

eninventory? >> new invintory? >> they did put in policies, the state did and the city of yes housing program, so you've seen a dramatic increase of buildings that actually qualify for conversion. so there's about 12 million square feet of conversions going on in new york city right now, and not just in lower manhattan, but we're working on one on times square. working some in midtown right now, because the math works because of these tax abatements. >> some of these buildings, the floor planning doesn't allow for it, and they're in a place where they're not going to get the workers back. there are going to be zombie buildings. what do we do with them? >> some are going to be torn down. we're tearing down some old buildings and get into new office buildings and that's right great demand. >> let me stop you right there. there's great demand for building new office buildings? >> we're going to build a 2.8 million square building right

next to grand central. we're going to break ground this year. >> why? >> because it's going to be delivered in 2032. when you look as to where the major companies, the biggest, fastest growing companies like citadel is doing, and j.p. morgan is doing, they want to be in brand new buildings and there's no new brand new buildings. the people that have taken that space, they can't even expand in that space right now. if you look at where rents were this year in midtown manhattan, we were back at 2018 volumes on leasing. and rents. we had $100 rents 212 leases. over two leases at $200 a square foot. >> so it really is a tale of two cities, completely. if you're in a building or new, everybody loves you. they want to be there. and if you're not, you're out of luck. >> that's right. the thing is on new construction, since there is no new construction coming on market, we're seeing what we had talked about in the past.

they'll go down to the next level. well located buildings with the right amenities. those buildings have been renting, let's call it at the 80, or $90 a foot, are now going 100, or $120 a foot, because of the scarcity of large blocks of space. >> so new york, with bill rudin, he was a cheerleader. he was with us recently. i tend to find you a little more realistic at times. you seem to be ptoo on new york. >> as you said, i'm usually fairly realistic and somewhat skeptical. i'm very, very bullish. we're investing $2 billion in this $9.5 million square feet of buildings. we wouldn't be doing it, if we weren't seeing the demand. the demand is there. if you can get the right basis, you know you're going to lease this up. i wouldn't do this in san francisco. my colleagues that are doing it in san francisco, are buying great bases, buying really cheap, but there's no tenants

to lease the space. in new york, there's tremendous demand. and this demand has been happening really without tech companies. private equity. now all of a suddenamazon is saying, everyone come back to work. they don't have the space. they're scrambling to find the space to bring people back. >> amazon that would have once had a headquarters here, if it weren't for our incompetent city government. >> how do you ladder retail, data center, we got another announcement yesterday a data center from the friends of the president-elect in mar-a-lago. >> listen, data center is obviously the hot sector right now. i always get a little bit nervous on hot sectors. it reminds me a little of the tech bubble, where everyone's building the infrastructure as if they're going to be the one that survives, and here's maybe not as many survivors. i will say there is structural issues in capital structures in the commercial real estate market.

we've talked about multifamily as an example. there's $500 billion of multifamily loans that are expiring, maturing over the next three years. again, those loans, or propensity of them were floating rate loans or done at really low rates. so they're going to be meaningfully impacted, to get through the process. if rates are higher for longer, which i think is the norm, which is what's going to be the case, there's going to be a lot of losses that are going to have to be ultimately dealt with in a lot of those regional banks. >> not systemic though. >> because big banks have had a very small percentage and were able to use their earnings and growth elsewhere to build reserves. >> finally, it's almost five years since the beginning of the pandemic. we started this segment talking about five days a week at j.p. morgan. are we really seeing it? >> i would say starting last labor day, we really began to see every day but friday.

now, i think with these commitments of back five days a week, i think you're going to start seeing the fridays starting to happen as well, and listen, it's -- this builds on itself. when j.p. morgan says it, goldman sachs says, amazon says it, all of their competitors say it, and we'll now be over that hump. i know we've been saying that three or four years. they're back. you go into our elevators, you're waiting for people to get back up in the buildings. we're back to 90% of where we were pre-covid. >> scott, i can't remember seeing you so positive in years. >> it feels good. there's still challenges ahead on the capital structure side, but you have strong economic macro tailwinds. that's the dichotomy here, with the new administration, the animal spirits are out here, but that momentum i think will push us through it.

>> looking forward to future conversations about it. scott rechler, rxr. >> all right guys, quick programming note as we head to break, less than half an hour away from an interview you will not want to miss. treasury secretary janet yellen here, live from thtre easury. "squawk on the street" returns after a quick break. sticks. dexcom g7 is the most accurate cgm, so you can manage your diabetes with confidence. ♪♪

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job on indeed, it's easier for talented candidates to find it. which makes it easier for you to hire them. visit indeed.com/hire

one of the biggest trends in the market over the last year is the convergence of key tech, that's all thanks to the booming artificial intelligence. now could nat gas be a possible beneficiary? we're going to talk to a trader. tune into our market navigator segment later today on "power lunch" at 2:00 p.m.

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.

the statements coming from the ceo of west steel called the president of the united states corrupt. as an american, i feel offended. this is just absurd. >> that was the ceo of cleveland cliffs last night on jim cramer's mad money, filing back at the ceo of u.s. steel as the battle of the fate of this company heats up, raising issue with david burrett who spoke with us on "squawk on the street" yesterday. listen. >> 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. >> now david, i know you've been following this very closely, and what happens next clearly u.s. steel and nippon steel have some legal battles to try to challenge this presidential order. but no question the fact that dave burrett in our interview and in his statements, and in the lawsuits is now making this about political corruption and accusing the biden administration of that certainly gives republican lawmakers something to hang onto, if they were to take his side. it's a much better selling point having that as the story than having a foreign takeover of a historic u.s. steel industry company if they were to get behind it, say, and potentially, that goes for president-elect trump as well.

>> yeah, it's a strategic approach they're taking. interestingly, sarah, he did not mention u.s. steel yesterday. there were some who thought perhaps he would in that long- ranging and wide-ranging press conference he held. >> oh, trump that is. it's interesting, david, i'm here at the treasury and the cfius committee, it's an interagency governmental committee, but it is chaired by treasury secretary janet yellen. so we're going to ask her about it. see if she can talk about it at all, given that there are lawsuits. now that there are questions about the integrity of the process, there are some questions. >> meantime, palantir shares now down doue-gibldits just this week. we'll talk about what's behind it that move when "squawk on the street" continues in just a minute. opportunities in the market. e*trade from morgan stanley. ♪♪ with powerful, easy-to-use tools power e*trade makes complex trading easier.

react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had planned. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy

lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. for all those making it big out there... ...shouldn't your mobile service be able to keep up with you? get wifi speeds up to a gig at home and on the go. introducing powerboost, only from xfinity mobile. now that's big.

palantir was one of the best performing stocks at the s & p last year. so far, it's early in the year, different story. >> we've been pulling data from filings which shows that the

palantir stock has coincided with a bit of insider selling, all preplanned. cathy woods sold about $15 million of stock. morgan stanley pointing to those valuation concerns even with the recent unwind, we've been pointing out among the highest in the software, egf. while investors are no-doubt bullish on software playing a critical role in the buildout of a.i., regulators are expected to smooth out this year. decelerating to 15% versus the 22% we saw in 2024. they're forecasting the pace of sales growth to drop to 13% in 2025. what's really driving this, guys, competition, stronger dollar. and what some analysts call a more moderate view on the return of investment of a.i., which is something we talk

about a lot for the semiconductor industry. software has now underperformed 9 of the last 10 trading days. bank of america says clients are still looking to put money back into the sector because there are if a number of tail winds, looking at not just a.i., but the incoming administration. >> we've also got some of these reassurances on things like scaling walls and and micron memory from ces this week, right? >> certainly, and there's a rollover affect it can have on software. you build on gpus, but you need the software it can run on, so it's a two part story. one of the keys to this market has been treasury rates. on the ten year at least hitting 4.73. a great subject to discuss with treasury secretary yellen, she's next when our market coverage continues.

. .

good wednesday morning. welcome to "money movers." i'm carlos quinn tia. right now, trying to unwind some opening losses today, we're back above 5900 as yields continue to inch a little bit lower this morning after hitting about a one-year high earlier today.