now we are down to one and we actually just talked about the possibility that there could be zero and by the end of the year who knows with, you know, tariffs and immigration. you could actually be seeing interest rate hikes if inflation stays -- stays hot. all right. andrew, he's back for this. we'll see you on monday. make sure you join us. "squawk on the street" is next. good friday morning. welcome to "squawk on the street." carl quintinnia. the december jobs print is strongest in nearly a year. minimal revisions. 30-year cracks 5% for the first time since 2023. the road map begins with the jobs number the fed might not cut rates this month.

shares of delta and walgreens are each getting a boost. exceeded analysts expectations. constellation energy at $16.4 billion deal cash and stock. this, of course, is power demand given the growth of data centers and a.i. continues to rise. don't miss constellation ceo joe dominguez in the next hour of "squawk on the street." the jobs number is 256. unemployment falls a tick, jim. >> i'm so glad you mentioned that. look, we can all be very negative. the economy put a lot of people to work and paying them ten cents more. i have trouble being negative. 25 cents, maybe 30 cents. when i see this number and what i say to myself is okay, would you prefer earnings to be good? this isn't earnings to be good.

were you prefer rate cuts? anytime i get earnings to be good, i prefer that to rate cuts. we are in the end creatures of what makes stocks move. i know that if you want to pay more for bonds and get an interest rate that's higher. what's really bad for stocks is recession. these numbers are far away from recession. the only thing i can conclude, david, is the fed got it wrong. that doesn't mean ceos will get it wrong or businesses get it wrong. we do not have a number that wipes out companies. we have a number that keeps the economy afloat regardless of what the fed does. >> with the markets with a ten-year approaching 4.8, what is that going to do? >> you look at the reset moment. the question is do we have to get political? do we have to say that john

gibson said to me, the ceo of paychex. the huge flood of optimism after the election. to say what happened is people are waiting to see whether vice president harris was elected and, therefore, they wouldn't expand where trump, they would expand. >> or make sure there was a result. >> that they had a resolution to this. once they had a resolution, they wanted to hire again. this isn't me talking. this is the guy who is the largest payroll processor in the country of small-to-medium sized business. he was talking about being involved and the fed is really out of touch. i think what we saw and i don't want -- i respect jay powell greatly. maybe they didn't understand once you got the election out of the way, there could be bullish no matter what. >> certainly that gets reflected in costco's december comps and b of a number where close was up

5% on the month. >> i know. look, david, i vastly prefer that we have more people being hired. 46,000 in healthcare. 40,000 in retail. are these things inflationary when we have mining and oil and gas and construction and wholesale trade and financial activities and business. no change. >> it's good. no change. >> little to no change. we can do one of two things. we can decide bonds should control the dialogue or we can look at delta or walgreens. you can say i don't count those earnings because the ten-year? >> of course not. >> that's what's happening. >> it has a big impact, of course. >> of course, it does. >> again, to come back in the broader perspective, where we were with rates prior to the election and after the rate cut, all we've done is go higher. >> look, the rate cut was ill

advised. >> the rate cut was ill advised? >> it was. 15 and 25 and 25. the 25 was not data dependent. they made a mistake. >> really? >> bowman is trying to shine on it by the final recalibration phase. we will talk to goolsbee later this morning. >> he is very realistic. i think what happens is i'm not going to hold what i feel about the s&p hostage for this increase in yields. i'm not. >> equity risk premium negative. higher on the s&p earnings. why is that market negative? >> because at the same time we get that, we do not have an economy that is going to have a soft landing. it's not going to have a recession. those are the things that really drive stocks. yes, it's not good.

i remember in the '90s we had this going up and up and a lot of the bond auctions. every time we had an auction and interest rates went higher, people sold stocks. you look at the '90s and see the stocks. what are the little blips down were increases in interest rates. >> i get it. it's not going to help those hoping that on terms of the budget side for example that interest on the debt would start to decline as a result of lower rates. >> no, it's not. >> as we kind of look ahead to the doge commission and what it comes up with in cutting and terms and no better with the interest rates. >> i'm dealing with ed bastian of delta. 25 years, it's never been this good. >> that got a lot of people's attention. >> you know, i thought i would never see united over 100.

nine times earnings. carl, i want to be more negative, but the thing i'm negative on is something which says the economy's still hiring. i got to take recession off the table. isn't that terrific? >> i did mention doge. let's get to delta and walgreens in a minute. it was interesting to note in somebody's podcast. >> mark. >> so much. >> everybody's got one. the last man in america. >> rogan? >> mark penn. >> i love mark penn. it was 10:30. at the end, i have to stay up for notre dame. how many things? >> i don't know. i missed it. musk keeps tweeting pieces of our interview of may of '23. >> he is so usy trying to change governments in europe. >> he does seem to come in on the targets for $2 trillion. now he is saying it is closer to $1 trillion. take a listen. >> it will be down to 420.

>> we are trying to $2 trillion. i think that's like the best case outcome. i do think that you kind of have to have overage. if you try for $2 trillion, we will try for one. if we drop the budget deficit from $2 trillion to $1 trillion and free up the economy to, you know, have additional growth, such as the goods and services keeps pace with the increase in the money supply, then there will be no inflation. >> right. >> so, that, i think would be an epic outcome. >> you cut a trillion. that still seems in a year -- a lot of the politicians think that and they think in ten-year increments with the bill potentially passed. originally $200 billion a year. maybe we can do that. now 1 00. he is talking $7 trillion to $6

trillion. >> you have to realize, i keep hoping, larry fink, ceo of blackrock continues to say we can grow out of this. i want to hear that. >> there is that belief that we can if we get 3% growth. scott bessent in that camp. i'm not sure what the additional oil production would mean or do. >> if you have oil, it will go up. the price of oil has gone up quickly and natural gas. >> 3% gdp. 3% cut in the budget deficit and the 3 million additional barrels. >> the arctic issues that came in this week. >> i think we really want to see. we have weather patterns in the uny we have never seen before. i almost wish we had a national weather person here. when we have cold weather in houston, you get a natural gas spike. you can't move the stuff fast

enough. those numbers may be a little distorted. i want to come back and say i want to take the other side of the trade from the point of view there is reset going to go on. i am seeing walgreens say that things are not as disastrous. walgreens is a huge chain. i want to see things good for earnings. when i get them, i'm not going to say, you know what? i'm a seller of delta because ed bastian doesn't know what he is talking about. ed bastian knows what he is talking about. i would have thought if the fed were really, really as nervous as they seem, delta would have had not a blowout number, but disappointment. >> right. 84. available seat miles up. jim, walgreens open up 15. >> yeah. tim wentworth. i'm going out to the healthcare conference. my fear with walgreens is they

will never find a buyer. >> i'll talk about that in a minute. the revenue per available seat number was far higher than anticipated at delta. >> united up 7. you want to sell united up 7? that's what we deal with. we are not bond traders. >> the guidance with 7.5% revenue per seat mile. a lot of investors are those looking for 1% to 2%. then the real strength of this as well. transatlantic is what i'm hearing, jim, which would be as you made the point already this morning, a positive for ual. which, of course, is one of the best s&p 500 stocks in 2024. >> number eight? >> somewhat surprisingly. you have a weak euro. >> you can't raise -- you can't put in more roots if you're bankrupt. southwest is committed to not adding more capacity. boeing, of course, is helping the cause of no capacity.

carl, i keep coming back to the difficulty you have if you're a fund manager saying i'm going to take advantage of that united airline spike with the delta spike and because i see what's happening with the ten-year, i'm going to go. they're not going to go. what they're going to say is i prefer slightly more ten cent wage increase. they are not recalibrating on the stocks. they are recalibrating on the fed doesn't have to cut. i prefer better earnings per share than rate cut. >> it will close door on small caps. russell. >> the small caps. >> you never bought that story? >> no, that was just something -- look, i worked at goldman sachs and it was a very exciting thing if you had some new rat. you could call people and say, david, we are taking the midcaps off. which ones? it doesn't matter an. i got an index. i want to put you in it.

can i put you in for 10 million? >> are there any salesmen still left? is that a job? >> someone was using the term on the 5:00 show robo. actually frank holland. gen tech. don't call them robo again. they're not. they're not robots. >> you guys want to get to walgreens quickly? >> i want to get to whatever you want to. i'm in a good mood. we're not in a recession. let's go tim wentworth. >> you look sharp today. both of you do. >> clothes make the man. >> well done. it's an honor to be with two gentlemen looking that fine. >> this suit is only one month of your rent. walgreens support. is up. you don't have to go back too far. one year. that said, it looks like 1.40 to 1.80 per share is the guidance. they reiterated that. they did have same store

prescription volumes. >> strong. that's what tim is saying. >> 1.5% and 8.5% on revenue in terms of prescription. u.s. retail pharmacy, obviously, better gross margins. 17% u.s. retail down year over year, but up 80 basis points quarter over quarter. you have steady operating expenses. there is hope perhaps. >> does boots want to be separate? >> you know, it has been reported on at sycamore and private equity firm passed on this. they had been trying to figure out a way to take this company private. as i have reported previously, it's a difficult undertaking for any number of reasons. getting the equity, it's a large equity check. debt financing, to my understanding, a good portion would be asset backed.

may not be as difficult. you got to get the roll-in of the 16% holder. >> that's key. >> jim, also what i continue to hear are other challenges despite this quarter, there are any number when you are buying a company that is got a lot of issues, well, a lot of issues. that makes it more difficult to get it done. >> you said the most profound thing. the guidance is the guidance. tim tim wentworth is a seller. i have to speak to him next week. get him offline. >> it would be busy. >> i think still surprising where they would actually succeed. >> they will try. everyone is trying. >> it's very hard. i spent a lot of time on this to my understanding. >> i think i should go home because of the ten-year. who would ever buy another stock

again? >> we will see. bond yields off the morning high. when we come back, the latest on the california wildfires. we'll get a live report from l.a. as we are looking at 35,000 acres. worst fire in l.a. history and maybe ever. more squawk on the street" in a minute. oh my god. [phone rings] at the tone, please record your message. [clock ticks] ♪♪ ♪♪ ehh... hmm. oh, that's very, uh... - right? - mmm... this store doesn't have agentforce, so an ai agent didn't tip off the stylist as to what i might actually wear. - yes. - oh.

that's a commitment. [glass knocked] hey bud! whaddaya think? you know, people can see you out here. ha ha ha ha, yeah, yeah, right, right, ha ha. love you, too. agentforce helps retailers prevent fashion fails. it's what ai was meant to be. ♪♪

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.

let's get an update on the devastating california wildfires. they have now killed at least 10 people and destroyed thousands of homes and structures. nbc's tom llamas is in pacific palisades. >> reporter: good morning, carl. the problems mounting in los angeles. behind me is the pacific palisades section of that community which is completely gone. wiped off the map here. you can't even see colors. everything is a shade of black. some people had to leave in a hurry and had to leave their

vehicles here. you see how powerful the fire was. you can't tell what type of car it is. you look down here. firefighters say this is molten steel. it burned off the cars. the destruction goes down the block. at least in this part of the pacific palisades. we know about 9,000 structures are gone. many of these were homes where families lived and people lived for generations. at least ten people have died so far and this is not over. people are praying the santa ana winds don't pick up because we have an aerial shot of the pacific palisades fire they are fighting right now. only 6% of that fire is contained. you see firefighters on the fire lines trying to put it out. there are multiple fires burning around. last night, the new fire popped up. firefighters were able to get it somewhat under control, but it is still burning.

people are on edge. you may live in one area and evacuation notice goes out and you have to leave and come back. on top of this, evacuation notices going out and emergency alerts on people's phones that are incorrect. in had less than 24 hours, aler were telling people to get out and they were false calls. they are having a problem with the system. all of this with the issues with the fire hydrants. pressure getting to fires and they can't find water to put out the fires. there is the issue of housing in los angeles. you may have up to 100,000 people, if not more, who now have no place to live. it is very expensive to live in los angeles. this is going to send rental prices soaring for many people. if you are middle class or working class and you are paying a lot on rent, those rents are about to go up and a bunch of people are about to flood that market, carl. >> we were talking about rebuilding costs and

construction demand and likelihood of getting insurance and mortgage as some of the banks try to reassess risk and whether or not these neighborhoods will last 30 years. i'm curious. you mentioned the water. are the winds in a phase to continue the air drops? those things that have been so important. >> reporter: yeah, they can. they can continue the air drops. something interesting we found out yesterday. people are flying drones and officials are pleading with people don't launch your drone. yesterday, a drone crashed into a super scooper. the massive airplanes s s thatp up the water in the pacific and dump it on the fires. the water pressure is low in the fire hydrants. there are still water mains open. you have an area completely gone and nothing left, but water flowing from open mains. when i say that the problems are still ting, the problems are still mounting. it is terrible out here. it will be months before they get a handle on all this.

you feel for the people who have no place to live. you mentioned insurance. there are a lot of people that were just kicked out of insurance programs or don't have fire insurance. when i asked the city council members, we asked the mayors and governor out here, what they can do. no one has a clearance. clear answer. carl. >> a period of time where insurance is a powerful social issue on the health side and now on the property side. tom, we appreciate the update. talk soon. tom llamas in pacific palisades. more "squawk on the street" in a minute.

- you give eye exams. - i give... fresh starts. better vision, healthy eyes... everybody wants that. - “hero doc saves vision!” - well, i- “hero owl saves money!” use your vision insurance for exams, glasses, and contacts - all at america's best.

[city noise] investment opportunities are everywhere you turn. do you charge forward? freeze in your tracks? (♪♪) or, let curiosity light the way. at t. rowe price, we're asking smart questions about opportunities like clean water. and how clean water advances can help transform our tomorrows. better questions. better outcomes. t. rowe price 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.

futures under pressure as we said here on the back of the jobs numbers strong, stronger oil. brent above 80. stronger yields. ten-year 4.75. opening bell in four minutes.

check in time is 3:00 it's 2:55. i know. is this what he's doing now?

as your host, i have some rules. first, no showers longer than 5 minutes. this isn't a spa. no games. no fun. yes, coach. (♪♪) meanwhile, at a vrbo... when other vacation rentals make you share your turf with a host, try one you have all to yourself. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. our advanced matching helps find talented candidates, so you can connect with them fast. visit indeed.com/hire -honey... -but the gains are pumping! so you can connect dad, is mommy a "finance bro?" she switched careers to make money for your weddings. oooh the asian market is blowing up! hey who wants shots, huh?! -shots?? -of milk. the right money moves aren't as aggressive as you think.

>> announcer: the opening bell is brought to you by nuveen. a leader in income, alternatives and responsible investing. all right. let's get to it before the opening bell. amd is the mad dash. >> a piece by goldman sachs. really, really good one. it really has a wide ranging both on capital equipment and regular semis. we reduced the 2025 revenue for amd by 10% to 11%.

you know you can't own a semiconductor stock with hot numbers. >> revenue growth estimates. >> that's very, very negative. a lot of that is the u.s. they have not been able to accelerate what they're doing in the data center. [ bell ringing ] >> it's not good for anything. >> let's get the opening bell here on the exchange with the big board. delivering meals for those in need at the nasdaq and technology. a io-tech focused on heart valve replacement. focuses odd d on the ipo. not a surprise, jim? >> i'm looking for situations that remind me very much of what happened in the horrible hurricane andrew, carl. this was in 1992. incredibly vicious destruction. 63,000 homes.

damaged 100,000. it was $27 billion back then. of course, this is 1992. i know you don't want to talk about it today. it was a major boost to the economy. it got so big, it was a major boost for the country. i know what has to happen is terrible. obviously, the fire not even contained yet. but to rebuild in a concentrated does boost the economy. >> to david's point where it is not an automatic rebuild mind set? it is more migration mind set. >> i think that's true, but at the same time, things tend to work out. federal money suddenly appears. a lot of these people -- not everybody's rich. usually a percentage of people enough to get the economy going. interesting, another reason i mentioned homestead is the late mr. fishburn from travelers who said this hurricane, this homestead was a reason to start.

>> it was so difficult. the journal today has made the point rates go up across the country for everybody since insurance in places where you are not in threat of fire or flooding or hurricanes because they need to make up for the enormous losses. obviously the tragedy on the ground is the focus here, but the losses are going to be enormous. you could ever get insurance again is the real question or how you will be able to get it. >> you can't buy a house without insurance. >> right, but -- okay. that's my point. i don't know. and then there is the other question of deportations, frankly, and the people who are relied on to build -- >> right. >> -- are they going to be here? >> look, it's so easy to paint an incredibly negative scenario. >> i know. >> it's a little soon to do that. i tend to think and i know we

all think we'll never been money again. i heard there will never been money again to rebuild sandy when you had all these homes and, of course, they found new ways to put homes on stilts and you got federal insurance. there is a lot of ways things work out when you have a natural disaster. >> i certainly would hope so. right now, we are just thinking about all those people. we all know people who have been displaced. >> this is one we all know. >> the nation's second largest city. it is happening in the middle of it. >> it's terrible. >> look, we have a down market. everything's down right now. i think that we'll come back and say companies that are involved with the rebuild will do better if only just because if half the houses are rebuilt, it's that terrible. so, it's easy to be negative. it's not going to be a good day. i recognize that. we have a lot of negative stuff on the nasdaq. even at 8:35, we were far worse

than now. >> that's true. you mentioned the amd downgrade. that was the second of the week. hsbc cut them on wednesday. >> tough situation. >> takes a crack at putting in the context with jensen huang with his comments and avs, autonomy and robots. he said it is almost incomprehensible large. >> we does have a statement put out by president biden which is starting to talk about restricting where you can sell and actually the point where nvidia put out an incredibly harsh statement this can't go on. my sources indicate the new administration would balk at this. this would be another thing that may be rolled back. >> i'm sorry, which part would be rolled back? >> the idea of caps. it's a little unrealistic. amd is different.

amd is a dog fight. >> the report you referenced in your mad dash which is an extensive one seems fairly damning, jim, for amd. again, people may not have been able to hear because of the cheering. >> we sold amd for my trust a while ago because i don't want to be in a situation where i'm hostage to cpus -- cpus are doing much better. no one seems to care today. >> right. >> it's a gpu thing that no one is talking about. that's the world that jensen plays in. it was a very good week for jensen, but that was a very long time ago. >> monday? >> monday. >> we do have some green on the board here. it's not just all red. constellation certainly is one of the names. let my make sure. constellation brands and constellation energy. >> the wrong constellation. >> which is? >> look at that.

>> this is the one that is performing. this is on the deal to acquire calpine. calpine was once a public company and power producer. disaster. i think restructuring, but got taken private in 2017. it was a big deal then. >> oh, yeah. >> it has gone very well for the sponsors in that transaction because they are selling at a far higher price to constellation. >> they don't mind they could have gotten much more? >> when? >> this morning. calpine. i'm watching the stock. >> how much more? >> before the day off, we were understanding -- the commemoration -- we are understanding con city legislation constellation would pay more. >> 50 million shares are main part of the consideration.

the 50 million shares went up 21%. thank you very much. >> you're right. >> the equity purchase price is already going up if you want to figure it out because 50 million shares teams imes constellation. you add those up and you got to actually take out what they say is the cash generation between the announcement and close and not to mention some other considerations as well. so, you get to total of $26.6 billion. by the way, more importantly and why the market may be reacting positively and to your point, jim, it was an expectation of a higher price, 7.9 is the overall enterprise value. enterprise value is debt and equity value together over ebitda is about 7.9 years worth of ebitda. not a bad multiple. constellation is doing well. this is what we talk about every

day. data centers. back to amd. the power problems, so to speak, we will have in this country, constellation was an incredible performance to do this transaction at this level because the stock went up because they are the biggest provider of nuclear power in the country. they signed deals with microsoft to decommission a reactor at three mile island. then calpine is natural gas. both moving into carbon capture, by the way, which is interesting. lots to talk about with joe dominguez when he comes on. >> joe is the authority on where we are going in this country and where we have growth for the first time in ages in the grid. he's excellent. i cannot wait to hear him speak. he's excellent. great guest. >> that will be soon. guys, deals that aren't happening is venu sports. you heard the squawk crew talk

about it at the end of their show. venu goes away. could have predicted this. once they were sued by fubo, i talked about -- once they won fubo, it does get a bit distracting, sometimes. sorry about that. >> i'm not going to disagree with that. >> you can look at all of the companies part of the venu now dissolved joint venture to provide a skinny bundle of sports programming, essentially. through financial happened. fubo sued. disney owns 70% of fubo. that stock went up on that announcement. more importantly here is the fact that a lot of different things. you know, the nba is going away from warner bros. discovery, the nfl season ending and disney

starting the streamer in espn plus pure streaming. also, skinny packages are available from the distributors that replicate to a certain extent the opportunity in the marketplace that venu was trying to take advantage of and you have the litigation magnet, so to speak, because directv and dish were threatening their own litigation. venu is no longer. you see the reaction in some of the stocks. it's interesting. warner bros. is down. it has been down already. warner bros. is down .5%. i come back to the fact that rupert murdock lost in litigation with his children and the trust and what it means for the future of fox is interesting in terms of would he consider selling. >> the interesting thing is you told us a long time ago that fox turned out to be a carve-out

winner. i think a lot of that is mismanagement. >> the company was unable to convince a new york state appeals court to dismiss mark maddox defamation claim. you are looking at potential damages again which likely would be quite large. >> i'll go back and say espn doing better and disney doing better and disney is a company that's reformed in part by hugh johnson. i know the stock seems it can't get out of the way at the 10 level. i think it represents great value. i know when universal opens its theme parks. >> you talk about this a lot. >> why would i want to go? if i could go to both of those, how exciting. by the way, i'm going. i think the theme parks, it doesn't matter what age. i think they are exciting. >> you enjoy the theme isn't

that correct. >> i think so. my kids will go with me. >> the new rides, i'm sorry. i'm for getting the words. you see them all. virtual reality. yeah. they make me -- i get nauseous. >> when i threw up on magic mountain, i was discouraged. >> when you go back, what's on your to-do list? >> i'm not going to eat. >> hydrate. >> we are starting to see stocks like wm, waste management, they're going up. that's related to the clean up and the fact there will be money for the clean up. these probably their biggest business. i'm surprised the market is factoring in what's going to change in l.a. >> and there are names. mcy. mercury general writes auto. that stock is down 21% this morning. >> we talk about waste management as a proxy for

economic activity. you don't want that by burning everything down or destroying stuff. >> no, i'm not -- it's difficult to ine without getting pushback. look, i think people are buying the natural gas stocks because that's spiking all over the country. i think people are buying anything that can get insurance and, therefore, the proceeds will go to someone. i think they're selling on the basis of bonds healthcare and we do have a conference next weekend. i think that's what's going to be in control. once we have a reset of bonds. we will not come in on monday and bemoan the same thing we bemoan today. >> you mentioned constellation energy and tdz. you had hopes. >> i did. they were the only ones with growth. dashed hope. very disappointing.

i do have bill mullins on tonight and someone from my trust has been wrong. the reason it has been wrong because i thought it would hold up and the other spirits have been down. i was bullish because mr. mooney was bullish. >> what's going on? >> beer sales are no longer strong. >> why? >> well, some -- >> i know the reason is people aren't drinking as much. why is that? >> glp-1s. they're all wrong. no one wants to admit it. if they admit it, you have a secular trend because the glp-1s will be alzheimer's and dementia and hypertension. you cannot go against that because there is no craving for beer. >> they expect net sales growth

between 4% and 7%. >> well, they're wrong. >> net sales increase of 3%. >> they don't know their own business. i lived that business. let me tell you, they don't know it. i'm surprised. they are in it, too. >> again, to your point -- >> i get daily numbers. >> reduce growth expectations for net sales and operating income. that is why the stock is down. >> it's a hispanic beer play. >> the wine and spirits getting crushed. >> that's what happened. it is no longer wine and spirits. they should have sold that a long time ago and they weren't able to do it. do i regret? i think mr. miller is driven. it's a declining growth and molson hasn't done well. bud hasn't done well. i felt this was the one share take growth you could have and they missed the quarter. now, they are also optimistic. my wife is in this business pretty thick. we had good numbers. i look at the numbers.

i know what the real numbers are for alcohol. you don't want to be in that business. >> diageo down. >> take a look at the drink lineup. >> when i look at what they did and starved the money of jack daniels. wine and spirits. >> he was just on the other day. erwin. >> from canada or the upper east side? >> upper east side. >> hispanic growth not as great as it was with the closing of the border under biden. also can nabis and what younger people don't want to do with their bodies. if i don't know what i'm talking about, we better cut back my wife's business. one business is mezcal. these guys don't wants to hear about that. it is a terrible thing your business is bad. you want to hear your business

is good. >> you didn't mention tariffs. it is interesting to hear trudeau push back on the idea of retaliation on tariffs. >> i do not think president will take kindly if trump decides the beer prices from mexico will cost more. >> she's a very smart lady. >> she came back very quickly with gulf of mexico. another theory. i bet he ends up liking someone who stands up to him since everyone else kowtows. she is talking -- >> the way it used to be in the 1600s. >> very smart person. i'm trying to arrange to meet her. that's a little too -- >> i'd like to meet her as well. >> you can do whatever you want, david. >> do the show from monterrey? >> mexico city. >> my wife's business. >> whenever you want to go, we'll follow.

>> beautiful city. in meantime, 1% declines here. back to 5850 on the s&p. bonds largely to blame as the ten-year circulates 4.75 sprs.%. we will get numbers around the consumer as well. don't go away. >> announcer: the bond report is brought to you by pimco. a global leader in active fixed income. feels like a work of art! (marci) what about the app? (luke) uh-oh! (marci) wow! went all in on gold. (vo) ding dong! homes-dot-com. we've done your home work.

prudential has been helping protect people for generations. ♪♪ we helped the lost generation find their way. the greatest be great. we watched boomers grow. [laughing] we are x, y and z. and this january, a new generation begins. generation beta so, now what? we help protect their life's work, like no generation before. so they can live a better life longer. ♪♪ (vo) weight loss. so they can live for so long, i felt stuck. but zepbound means change. zepbound is for adults with obesity, to help lose weight and keep it off.

activating 2 naturally occurring hormone receptors in my body, it works differently. it's changing what i believe is possible when it comes to weight loss. it's changing how much weight i lose. up to 48 pounds. and changing what happens. don't take if allergic to it, or if you or someone in your family had medullary thyroid cancer or multiple endocrine neoplasia syndrome type 2. tell your doctor if you get a lump or swelling in your neck. stop zepbound and call your doctor if you have severe stomach pain or a serious allergic reaction. severe side effects may include inflamed pancreas or gallbladder problems. tell your doctor if you are experiencing vision changes, taking a sulfonylurea or insulin, having suicidal thoughts, if you're nursing, pregnant, plan to be, or taking birth control pills. side effects include nausea, diarrhea, and vomiting, which can cause dehydration and worsen kidney problems. zepbound means change. and when it comes to weight loss... change is good.

discover the weight loss you could be bound for. talk to your doctor about zepbound. take a look at week to date laggards. palantir at the top of the list we talked about this week. you will see utilities. edison closely related to the fires in california. as far as loss damages estimates. accuweather did $50 billion which is ten times maui. stock trading with jim in a minute.

(♪♪) the booking app i used didn't have agentforce. so an ai agent didn't know to move my reservations inside... ...or know what i like to eat, which is not that.

what's up, my brother? oh, hey, bud! we really needed this rain. right? [car splashing rain water] agentforce helps restaurants prevent dining disasters. paddle on over! it's what ai was meant to be. we got you, brother. let's say you're deep in a show or a game or the game. on a train, at home, at work. okay, maybe not at work. point is at xfinity. we're constantly engineering new ways to get the entertainment you love to you faster and easier than ever. that's what i do. is that love island?

let's get to jim and stop trading. >> rigetti, rgti. a quantum company. it was less than $1 two months ago. they tried to gun it up between four and five. they are wearing it. please be careful not to take

stocks up four and five. they are real sellers. this is a real quantum computing company. is it ever in the face of what jensen huang, whose stock is not doing well today. i don't want to be in rigetti computing. >> one of the comments made by huang this week. as for next week, jim, you will be at jpmorgan healthcare. >> i think what we will find are companies doing remarkable things that are actually moving the needle. actual bristol myers with the terrific drug kovenfi. eli lilly with the glp-1. bird flu is a real issue. i'm following it. boston scientific is a winner after johnson & johnson of the medical device recall. there are companies innovating doing things. their stocks will go higher. >> it's funny this morning, sorry guys, retail is up nicely.

interesting limit. walmart is up almost 2%. target support. >> there are companies that are doing great things. walmart working overtime. costco trying to help. trying to help. >> a lot of people have jobs and they're going to spend. >> exactly. >> nike today. >> i thought nike. it's a little bit too early. these are companies that are going to be deeply involved for multiple years for rebuild. those who remember hurricane andrew, the companies down there did incredibly well for years. >> although, home depot is trailing a bit. the broader retailers. >> that's a mistake. that will be up soon. we're buying it for trust. >> constellation. >> i think he is doing a good job. you have to forecast right. i think you have to recognize that everyone has been so unwilling to recognize the structure change going on. everyone thinks it's cyclical.

i think it is secular. >> jim, save travels. >> thank you very much. we will do lilly in your blog. i want wait for mr. dominguez. >> great when the stock goes up 20%. >> interesting. >> "mad money" 6:00 p.m. eastern time. we will talking to austan goolsbee after the break and get some updates in a minute.

only the servicenow platform connects every corner of your business, putting ai agents to work for people. like secret agents? no, more like autonomous minions that you control. to do what? well, jim's agents resolve simple customer issues. and patty's agents flag network problems. —proactively. —yup. i'm lovin' my agents. wait, you all have agents? oh yeah. and on the servicenow platform, everyone's agents work together so everything works better. can i have agents? maybe. ♪♪

♪♪ well would you look at that? jerry, you've got to see this. i've seen it. trust me, after 15 walks, it gets a little old. ugh. i really should be retired by now. wish i'd invested when i had the chance... to the moon! unbelievable. stop waiting. start investing. e*trade ® from morgan stanley.

good friday morning. welcome to another hour of squawk on the street. live as always from the stock exchange. stocks are under pressure. we have a more than 1% sell off. 1.4 sell for the s&p500. nasdaq down, getting hit especially hard. adding to its losses.

it's those tech stocks in particular that do not like the rising treasury yields. we just showed you. take another look. bonds selling off. treasury yields higher on a very strong jobs number. that is the reaction. 4.76 on the ten year yield. you do have some pockets of green in the market. energy and utilities higher. everybody else is lower and as i said technology getting hit the hardest. finals, real estate, right down there with it. >> street doesn't like this. we are watching the deadly wildfires in los angeles. at least ten people are dead, 180,000 have been told tua. the palisades fire burned through 30 square miles and is destroying thousands of structures. we will be live on the ground this hour with the very latest and new estimates on the possible cost of that devastation. we have some economic data just across the tape. consumer confidence. rick has it for us.

>> reporter: yes. there are surprises that carl hinted at. let's look at the headline number. these are january preliminary and a couple weeks we will see the final read show up. 73.2. a little less than expected. less than 74 which was the december final read. here is where it starts to get interesting. current conditions though zoomed up. 77.9. bested expectations. well above 75.1 in the rearview mirror. last year it was well over 80 and finally what lies ahead, expectations, light at 70.2. following 73.3. 70.2 is the lightest going back to july of last year. here is where it gets exciting. one year inflation, boy, this is a big jump. from 2.8 expected, 2.8 last up to 3.3%. 3.3 equals where we were in may

of last year to find a higher number you are going to november of 23 when it was well over 4%. on the five to ten year outlook, getting zoomed as well. we were looking for a number around three. last look was three. we had a lot of readings last year in a 3% range. now it comes in at 3.3. 3.3 would be the warmest ail the way back and i do have to go back a bit here. all the way back to june of 08 when it was 3.4. the inflation data elm bedded in this report just seems to cement what we experienced this morning with a hot jobs report which most likely won't take pressure off sticky inflation and of course we are pricing out interest rate cuts as we sit right now we are at 497 in a 30 year bond. that's up 4 on the day. it is high water mark, 5%. sarah, back to you. >> all of it. bond negative this morning.

thank you. let's talk about jobs for a moment. this was a blow out report. 256,000 jobs added for the month of december verses 165, some had 155 on expectations. the private sector in particular, very strong which is just notable because the government has been doing a lot of the work in the last few months. private sector added. i think it speaks to the confidence factor rick mentioned consumers on current conditions looking up. businesses too in terms of hiring expectations. i feel vindicated highlighting the business surveys in recent days about how businesses feel good about the outlook. they hire in that kind of environment. for those worried about a softening economy and labor market you just don't see it in reports like this. the unemployment rate. unexpectedly dropping to 4.1%

verses 4.23%. the average hourly earnings still going steady. 0.2 increase on the month and it is good news because the prior month was .4. little bit cooling off from there but still strong. if you look across the racial break down it was good because everybody got a drop in the unemployment rate. asian, white, hispanic, black or african american which is still elevated but the rate comes down. it's all good news and we now push out the pause for even longer. the market was dealing june or july. now it looks like object for the first rate cut and next week we will get cpi and i do wonder if we get a hotter number that could connect with the inflation expectations rising if people start talking about rate hikes. i don't want to put it on the table yet. it is not getting priced in. we are talking about a more prolonged pause and i will just

add one piece of corporate which we love to put in. delta ceo this morning when commenting on the demand they are seeing, take a look at this. super strong demand. as we move into 2025 we expect strong demand for travel to continue with consumers seeking the products and experiences that delta provides. the only bummer is that the good news on the economy is bad news for stocks. >> it is bad news for yields which is then bad news for stocks which is why we are down over 2% on the nasdaq. we are seeing all the mega cap tech names suffer significant declines. we have the s&p down 1.6% as well. we had a ten year approaching 4.8% in the yield this morning. a bit below that but close to it. what are your thoughts here? no recession in sight for sure. what are we thinking?

>> have you to wonder if the increase in yields presents a bigger economic ead wind to evaluations which we see across the tech sector and to the economy. we thought mortgage rates would come down and we would get we life but we have seen the bankruptcies go up because interest rates high. that's surprise though it's happening for a good reason because the economy is stronger than expected could be a head wind especially where the fed has been cutting rates and also raises the questions about if if they should have been cutting rates as much. >> the canadian foreign minister said they will discuss some tariffs against the united states at a meeting which is also sort of in the ether. the idea that tariffs. >> inflation. >> they also had a very good jobs report in canada. let's get the fed's take on the latest jobs number. steve is here post 9 with a very special guest. happy friday, steve. >> happy friday. we are pleased to be joined by

austin, chicago fed president. thank you for joining us this morning. >> yeah. great to see you again. >> i hope ru happy to be the first guy out of the box to talk about this jobs report which is what, double the estimate? how does it make you feel about the united states economy and i think second of off if jobs are -- increasingly representing a source of potential inflation to you? >> i think you will never hear me chain we got 250,000 jobs. it is a strong jobs report. it makes me further comfortable that the job market is stabilizing at something like the full employment rate that as we went through the fall last year there were some danger signs that you had seen the unemployment rate taking up for a fair bit. now that is stabilized. it's even come down a little bit. i think that part is strong. i think the -- there's still a couple of question marks about

over indexing on individual job months as you know we have been up. we have been down. we have had hurricanes. now we got fires. we will have to see what that will do for the numbers and we had quite a strong christmas season. if you look in the jobs numbers, you had a very big positive private sector job growth in the retail sector. we will still have to process through was that a sign of the season and then will slow down or was that a sign of general consumer confidence and consumer spending will remain strong going through the beginning of this year? >> austin. the chair and others as well have said that they do not see the job market as a source of inflation. is that changing in your mind? >> that has not been changing in my mind. i don't see it as a source of inflation. if you look at wages for 2024. i think the number was 3.9%

growth. that is pretty close to consistent given what production has been running with 2% inflation. so, so far to me the job market looks like stabilized at full employment, not an indication of over heating. >> so many things to ask you about. one more from me. you have interest rates really going the other way. is that consistent with your outlook and what the economy needs? is it something that the fed needs to address and how do you explain the fed cutting rates and the long run has gone up to strongly as it has? >> if you look at the long rate for the people who say that's because of expected inflation that can't really explain it. you take the tips measures of what inflation expectations are that explains that most maybe a third of what has been happening. i think some significant part

is factoring in that if growth will be higher than what people thought the feds -- the speed at which the fed is going to be reducing down to nuetral is slower than what they thought would be a more shallow rate path if you want to call it that. that will affect long rates because they are just adding up a lot of short rates. i think there is a -- a fair bit of uncertainty about policy, coupled with -- as sarah was saying you have seen the up tick in some business confidence and if you think the growth rate will be higher i think that could be contributing to it as well. >> do you still want to cut rates this year? >> i -- look. it is not what we want. it is what will the conditions authorize or justify? i still think look for all of the discussion about inflation if you take pce inflation which is our 2% target and you ask

over the last six months what has it been? it's 1.9% through all of the bumps the inflation rate since the bump in the first quarter of last year we have seen pretty stable inflation that's been coming in around where the target is. even the core has come down i think the last six months, core is about 2.2. if conditions are stable and we don't have an up tick in the inflation rate and we keep having them come in around 2% with stable and full employment i think that the rates should go down to where they -- to what i consider to be nuetral and 12 to 18 months from now they would be a fair bit lower than they are today. the thing. >> so that's a yes. >> that will explain, justify the speed at which we do that will be what happens to

conditions. >> your favorite topic is talking about fiscal policy austin. i say that with sarcasm for people who don't hear the tone in my voice. carl just read a report saying that canada was considering tariffs. you can hear things are coming will happen. how do you process it? >> look. have you to think about them. we are not political pundits looking at what's a possibility that x, y or z thing will pass. we -- anything that affects prices or employment the law says we have to think about that. we are setting the monetary policy to stabilize prices, maximize employment. that said once you start going down the -- going down the rabbit hole or rat hole or i don't know what kind of hole it is about say tariffs, you then you have to start saying okay.

wait a second. doesn't the -- doesn't the economic principle say that the fed should respond to longer term or permanent inflation shocks differently from temporary inflation shocks? is this a one time increase in cost or is this a persistent inflation shock and can you tell the difference? stuff like that becomes more complicated if there is retaliation it becomes more complicated still. >> that stood out to me in the minutes. >> i troy try not to get into that. once we have concrete proprosals for sure the fed has to think about it. >> we can't tell if it's permanent with the shocks. >> nobody really knows. have you to just roll with it. i still think though that

people have issues with your view that there has been a lot of progress lately on inflation. yes we have come down from the super high levels in 2022 but if you look at core pce we really haven't seen much change in the past few months. it is at 2.8%. on the same side there is not a lot of evidence that the policy has been super restrictive on the economy. >> well. let's take those two important topics but they are kind of different. on pce inflation. >> they are similar in that i'm. >> you take pye inflation. the 2% target. in the last six months pce inflation has been 1.9% over that time. core pce inflation. 2.2% over those six months. the number that is high is largely reflecting that -- the beginning of last year we had an up tick in inflation. there's no question about that. so it is wrong to say that is

not progress recently. that's just the way we add up the numbers if you make a 12 month moving average you have 12 months of persistence in it. >> don't you target the annual rate of inflation? isn't that the target? >> the actual rate of pce inflation for the last six months has been 1.9%. if we got six more months exactly like the last six months we would be below the target. i just want us to put in context the reason why the inflation looks sticky in my view is because we had a blip up almost a year ago so it's wrong to look at something that is a 12 month moving average and act as though what is happening is something that is happening in this month when what's happening is things are dropping out the back from 12 months ago. >> a big part of i think underlying her question is criticism coming to the fed that you cut 50 in september.

you cut 25 in 25, brought it down by 100 and the economy has done nothing but get stronger. i guess one question from that is you have said several times and i mean this -- the fed has said that there is still restraint in the funds rate. it is just real hard to see that restraint out there now. where am i missing it? >> a lot happens as you know in the back row economy that has nothing to do with the interest rate or the fed. so you have to kind of try to separate those out. what i try to do when i'm looking for restrictiveness, we have the historical comparisons but go look at the interest rate sensitive parts of the economy. that's where you should see it. i think in several of the more interest rate sensitive parts of the economy you still see the impact of restraint. now, if we are getting an up

tick in business confidence and it'll lead to on its own merits having nothing to do with the interest rate and increase in animal spirits and sentiments for investment we have to take that into account. the question is there evidence of over heating of the economy? so far as i said in recent months for all of our discussion there is not a lot of evidence that the economy is over heating. the pce inflation rate over the last six months ha has been 1.9% and the unemployment rate has stabilized t full employment. >> financial conditions are undermining your view that policy is tight aren't they? >> and auto is at 16 million. >> are they? >> financial conditions don't suggest your policy is to tight do they? >> well be careful with financial conditions. there is a massive reflection problem as you know that if we announce that we are going to be tighter than that will

reduce the -- stock market will react badly, financial conditions can go the other way and it just reflects our actions reflect in the stock market and they don't become a reason for the fed to change its strategy. if the market thought that the fed was going to succeed at the soft landing and the market went up for that reason that would not be a reason for the fed to start raising because financial conditions let up. that would be a reflection. i think the long rates going up if they start getting driven by inflation expectations, right. >> that would be a concern. that inflation expectations like the ones we are siting from the university of michigan but i prefer the more market based expectations but i put a lot of weight on that. that is a critically important part of trying to figure out is this return of rates to something like what they were

from the spring and the renormal, of the yield curve, is that a sign that we are returning to normal or of something else? i think expectations. >> and the data do show that. we have shown that data showing inflation expectations up a fraction of what the ten year is up. you and i -- decades ago. you were a university chicago economist. we -- we met at economics conferences and would walk about the wonkiest possible things so i will continue that tradition. production is higher. does that mean a higher nuetral rate for the fed and how much do you think that along with the demand for capitol along with ai may be responsible for the increase in the long rate? >> it depends if the growth rate increase is permanent or

transitory. if it's the latter it doesn't -- if it's permanent for sure it raises the drought growth rate and our star. if this is a front loaded that -- it's going to go away and we will go back to normal that presumption is no longer true. i think that production number. i love that you are watching. i think that everybody should be watching that. it is very now noisy but there's nothing more important as a data series than what we think trend production and potential output growth is for the economy because it's going to determine if you think there's over heating or not. >> right. you can't take a number, a monthly jobs number for example, 250,000. you say is that a sign of over heating? if production growth is higher than what it was before you can't -- you really can't say that. you have to be careful with

aggregate numbers. >> we are always grateful when you join us, especially on days like this when the market is moving on data and everybody is desperate to understand just what is going on. thank you. >> any time. great to see you. >> all right. >> i feel like that is about as -- a view as you can get on a strong job number. we are still thinking about cuts and looking at six month numbers. >> a fair bit lower. 12 to 18 months is what he said. >> i don't think it's the first time he used a phrase like that. but he is still using it. >> on the back of the job and inflation expectations and better date a. >> the layering in the production numbers is critical here. more workers working means higher potential growth. >> thank you. good stuff. we have news on president elect trump's sentencing for that we will get to. >> that's right. president elect is off the hook in the new york hush money

case. the judge just with in the past couple minutes sentencing trump to unconditional discharge. that means he won't face jail time, fines, any penalties of any kind in that case. the judge saying that this ruling on this sentencing is due to the president elect's status as president elect. he said that donald trump -- the citizen and donald trump the criminal defendant wouldn't be entitled to such considerable protections. trump himself speaking to the court today remotely said this has been a olitical witch hunt. he said it was done to damage my reputation so i would loose the election. the judge then sentencing him to unconditional discharge on all 34 counts of false business records. as the judge produced this sentence he said to the president elect i wish you godspeed for your second term in office. back over to you. >> okay. thank you. wildfires around los

angeles continue to spread. ten people have now died. evacuation orders have expanded. they total nearly 180,000 people. let's get to nbc news. liz crotes has the latest from altadena. liz. >> reporter: hey. it's just mass destruction all over this place. it is horrible to see. we are at one of the businesses in the downtown area that's destroyed. this was an auto shop. you can see all the charred cars here. then when you get in to the neighborhood it's block after block after block of destruction, home after home gone. it's hard to really wrap your head around and you know there are questions, the death toll is up to ten and there's a question of if it'll continue to rise. probably today or in the coming days first responder also start to bring dogs in when they start to search properties and look for any potential remains, people who didn't make it as maybe they weren't able to get out. i spoke to a woman who said her grandmother died in this fire. she lived in her home over 40 years and said i lived through

fires before. we are used to this. i don't need to get out. this time was different though and she sadly didn't make it. there is so many questions that are coming out. we have thousands of people who lost their homes and are evacuated. we live in an area, southern california with one of the worst housing shortages in the country. there is no housing already. where are all of these people going to go? where are so many kids kids going to go to school? state farm pulled out thousands and dropped thousands of people in this neighborhood as well. there's so many questions about how folks will rebuild and what comes next when we are seeing such intense destruction all across la right now. david. >> appreciate that. giving us a fresh picture on the ground. let's continue the discussion with the latest on the wildfires. cal fire battalion chief joins us this morning. we appreciate your time. is there a sense as to when the

winds at least are going to make putting containment in a better spot? the coming days? how soon can that happen? >> yesterday was a great day. they were calm pretty much all day. i spoke to the crews last night. air craft was able to fly yesterday, last night. containment is starting to come up. today its starting off windy but not like the first two days. >> is the ground also less fe rt ile for fresh fires to take place? >> it means that any fire won't spread as quickly and we are used to fighting fire in conditions like this. we will put this out. we will get containment on this fire as long as we don't see winds like we saw the first two days of the week. >> we have been wrestling all week with misinformation regarding water policy, fire budgets in the state of

california, fire budgets in los angeles. what are the biggest miss conceptions that you are trying to clear up even as you have your hands full fighting this crisis? >> you know there's two. i spoke to my crews at the night of the fire fight and we had water the whole time. the pressure may have dipped a little bit during the height of the fire fight but we had water the whole time. another thing is i think if i had an engine at every house with unlimited water that kind of fire activity, that activity -- the way that fire acted with those 80-mile an hour winds. i'm not sure how much of a difference that outcome would have been. it was something like i had never seen. >> are you getting the help you need from the authorities? the city? the state? >> we sure are. we got reinforcements from all over the state. out of state, the crews were out -- able to take naps, get rests yesterday. it wasn't like the first two days. we are getting containment on

this fire. we know there's winds coming so we aren't letting our guard down. we are getting as much done, much work as we can get down before they come now. >> i hope you know how much of the -- i'm sure the city, the state and the country is grateful to you, rooting for you, thankful for your efforts and just this horrible situation. we thank you for your time as well. >> thank you. >> yeah. the heros here. staggering estimates when it comes to the cost so far of the la wildfires. for the insurance industry. jp morgan is saying that losses could be more than $20 million which surpasses the damage from the 2018 camp fire which currently stands as the costliest blaze in united states history. insurance stocks taking a leg lower this morning. some of them aren't even public. as i have been talking to some of these insurance insiders about what this means. let's put the $20 billion for instance in context. in the last 25 years. we are only talking about 25

years here. worldwide insurance losses wildfires is 100 billion dollars. that's before california. here are some of the big ones. i mentioned camp fire. what is interesting here and we have another list of some of the top ones, two things stand out. number one they are all very recent. this is a recent thing just happening 2016, 2017, 2020, the other thing that stands out is the losses are getting bigger and bigger so of that 100 billion in losses worldwide from wildfires in the last 25 years, 86% is in the united states. what's happening is we are looking at a situation that is becoming more frequent, and more dangerous which just make itself harder to insuren california there are players like state farm. there's this california fair plan. the insurance companies have been pulling out and the fair plan is stepping in.

they are looking at a huge potential deficit as well which would then fall to assessments on the heavy market share players in california. david the bottom line is that people are starting in the industry to question if california is going to be ensurable after this because of these kind of loss that are completely new, unan advertise unanticipated. >> this is a growing issue in california and florida, places that are taking a lot of hits from hurricanes and the like and flooding. it becomes very difficult. you have to take a lot more risk. even the people that lost their homes apparently were capped. their fire insurance was already capped. you are talking about some of the most expensive homes, some of them in the country. the average price when you look at the destruction.

insurance is going to be a continued issue. by the way the rest of the country also bears some of that burden as well because rates go up across the board from the insurance to try to make up for some of the significant losses they are taking and the cost of insurance they will pay more for. >> i think the possibility of insurance in places like california will be a huge talking point. a lot of economic damage as we continue to watch what is happening there. also watching the market here because we are getting hit pretty hard across the board. it's the rising treasury yields on the back of better jobs numbers standing in the way of stocks right now. we have the dow down 552 points. nasdaq adding to heavy losses for the week. higher yields make the tech stocks less appealing. nasdaq down 1.6%. we will be right back.

welcome back to squawk on the street. your cnbc news update. rudy rudy giuliani facing a second attempt to hold him in contempt of court. he was held in a civil contempt

on monday after a federal judge found he hadn't complied information requests from two former georgia election workers that he defamed by claiming they helped rig the 2020 election. today's hearing will consider if he violated a court order to stop making allegations against them. alec baldwin filed a civil lawsuit accusing new mexico prosecutors of malicious prosecution and civil rights violations after the deadly shooting on the set of his film rust. a judge dismissed the manslaughter case against baldwin in july finding the state withheld evidence from the defense. and uber is offering parents a break from driving their teens. the ridesharing company announced six free rides up to $20 each for young people who fail their driver's license. the offer is only available through uber teen accounts which are authorized for 13 to

17-year-olds. >> great. happy to hear it. yeah. thank you. constellation energy is a caring calpine. it's a cash and stock deal. it is valued -- move up in stock price at roughly 19 billion. perhaps even a bit more. joining us is the ceo joe dominguez. good to have you. in the title of your deck to sort of explain what's happening you call it creating the right company at the right time. why is this the right company and why is this the right time? >> let me start by saying happy new year to you. i almost fell off my chair a moment ago when i heard jim cramer on your show talk about me as some sort of expert. look. here is what we are thinking. we wanted to create the kinds of abilities and put them

together that willpower the united states economy at a very special time. we are seeing significant growth. not only in the data economy but really across the board and a lot of different regions. we like to follow where our customers need us and that is what we think we have done here. >> yeah. you are talking about unprecedented demand growth projected for the united states. it's not just our expectations. they are broadly shared. what gives you the confidence that is going to be correct? >> look i think that what gives me the confidence is that we are seeing the activity on the ground, you know. microsoft the other day announcing $80 billion of data center spend. that's one data point. it's a significant one. the number of enter connection requests we are seeing for new customers and load and scale we haven't seen for many of us in our lifetime. all of the data points are going in the same direction as you know and as you pointed out. it is not just a saying.

we are seeing a lot of activity on the ground and the grid operators are predicting in their forecast. >> well and that's resulting obviously in what you are continuing to see is 13% eps growth for a long period of time. now you are talking about a 20 to 25% addition to that as well to that base case as a result of this deal. what gives you the confidence that you will meet those kind of growth targets? >> we have a great team and calpine, you know, has a wonderful team. we have been delivering on that for three years in a row now. this you have the best team and the best collection of assets you have a lot of confidence. that's where i sit. >> natural gas going to be around for a long time or so you say. why is that? >> because we can't grow zero he zero emission megawatts. we knew that before this load growth. i think its powerful that even

in california which has been leading the energy transition. the grid operators saying they will need natural gas at the volumes for decades to come. that was before frankly we have seen some of the revisions and load forecasts and the story is to you across america. the load that we are seeing coming up, the demand we are seeing coming up is 24-7 energy demand. we aren't just going to be able to meet that with resources renewables are important to the future of the country. they will continue to be very important. the reality is that they don't run all the time. they are not predictable. we need resource that can step in and meet the consistent demand we are getting from our customers. we need a collection of different resources to work together. that's what we are building here. >> you know we speak a lot of course as you know about the uncredible power demands as a result of the growth and data

centers and ai. a lot of excitement last year around small modular's aren'tors. you are the expert given the company you run is the largest producer of nuclear power in the country. are they real and when can be expect them to be in the grid and make a significant difference in terms of proaid videoing so many of the data centers? > >> fair warning, i think the information is yet incomplete. we are excited about the design. we think it's going to be an important ability for the country. each month we see encouraging signs. what we are doing is moving forward with early site development. we will look for early site permits to execute on the designs when they are ready to go. in terms of when it's going to happen i think that it's easily

five years away and perhaps longer. the economics are very compelling and we are talking to our customers about that. we are also talking to our customers about carbon sequestration and a host of technology. as i nuclear guy i have to tell you i'm pretty excited about what's available in that space. >> we will be following with you. you mentioned carbon sequestration. anything at risk here as a result of the trump administration perhaps rolling back some of the tax advantages? >> well i don't think it can be. i think that -- for a country that's focused on using this natural gas resource that we have it only makes sense to really double down on the investment in carbon sequestration. we have the strategic advantage of more natural gas resources,

more than any other country on the planet. we have the days patch ability or this reliability value it keats. it lets us keep the existing assets operating for longer and you know all of that seems to me to be consistent with the president's vision. >> speaking of which you mentioned -- you use the word expediate and his theme for that in this country. i wonder how much of a tail wind is that or if the demand picture alone will keep the industry hungry? >> i think that we need to see a little more about what that policy actually means. here is where i think the president is right and was right when he was in office before. the demand and the need for base load reliable power is acute. it's grown more acute with all of the load forecasts

increases. so -- and like wise the president elect was right when he talked years ago about the importance of advancing ai technologies not only for the economy but for the geo political security of the nation. i would expect in this new administration to see substantial encouragement for both those things. the growth of the technologies in ai and other things that will be important to the country, critically important to the country and the further development and support for resources that have the best reliability in the nation. so, pretty excited about what is coming forward. >> i feel like we need to take a moment and pause for the stock. your stock is up 34% year to date. it is been like a week of 2025. it's up 160% over the past 12 months. it's doing as well as some of the ai and semi conductor stocks if not better. do you think investors are over

hyping the energy needs we will have here around data centers and ai? are they underestimating it? what do you think the stock tells you? >> look. i hope they are not over hyping it. we think there is -- real business growth there. our investors know how to value the company. what's exciting to me is the new abilities that we are going to create with this acquisition putting it together two great teams, gas, nuclear, geothermal, storage abilities. so i think we will really be able to hit the ground running as soon as we get this done and lead the industry. i think that is the excitement that you are seeing from our owners. i'm happy that at least the early reaction is to favorable. we are building a company for the long haul.

>> all right. well with market cap that's approaching $100 billion we appreciate it. look forward to future conversations as well. thank you. >> thank you. happy new year again. >> thank you. after a break is a tiktok ban now imminent? ? oral arguments getting underway at the supreme court. 1% declines across the board. dow down 580. we are slightly off of the session lo. th we are back in three. ever. ow! so kate in hr ... hey kate. can focus on people, not process. oh actually, i have a question ... keep up, nick. do you have to be sick to take a sick day? patty in it is using ai agents to deal with the small stuff, so she can work on the big stuff. agents like secret agents? secret agents i control. with your mind? you know ... i played a secret agent once. - we know. - oh gosh ... i liked it. over here, ai gives tina the info she needs

to get the job done. nick, what did we say about touching? no touching. good. ai helps jim solve customer problems before they're problems. for reals? for reals. for reals. servicenow is the only platform that connects every corner of your business, putting ai to work for people. oh, so we all work better, together! my work here is done. excuse me, which way back? uh, follow him.

-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.

oral arguments underway over the future of tiktok. >> good morning. fascinating moments at the supreme court. the first half hour has been tiktok's attorney arguing to the court that the law passed by congress forcing bytedance to dive st infringes then or

subsides's right to freedom of speech. the lawyer requires them to divest by january 19th. that's in nine days and that's of course the day before donald trump takes office. the platform would be banned in the united states if if not sold under this law that tiktok is trying to get reversed at the supreme court today. remember president trump has switched sides on this issue. initially he was opposed to tiktok, talked about a ban. now he is saying he wants a hold on this whole process until he can come up with a political resolution and what we have been hearing in the first half hour at the supreme court now is tiktok's attorney arguing that though bytedance is a chinese company is controls the formula there, tiktok united states is a united states subsides and entitled to freedom of speech protection under the united states constitution, the justices seem a little skeptical of that. it is hard to tell because their job here is to push back

and ask probing questions. they have been asking about that idea that tiktok is really entitled to freedom of speech or is if -- on bytedance which is a foreign company and not timed to freedom of speech. it's a fascinating clash of freedom of speech and national security at the united states supreme court today. we will see where they land on this. unprecedented wait. >> we are nine days away potentially from.

uncharted territory and a lost the argument has been about what is an -- what is -- is it itself -- you know an element of free speech? that is what is being hashed out by the supreme court. united states government under the biden administration and under the bipartisan congressional law says that this app is a threat because it -- allows chinese affecting united states immediate media. from canada to green land to the panama canal. from trump keeps bringing up annexation. we will talk canada next. partnering to unlock new ideas, to create new legacies, to transform a company, industry,

economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley. it's a smart move to get a second opinion. you do it when you're looking for a contractor. you definitely do it with medical advice. so why not with your stock market investments? we can help you see opportunities you may be missing. at hennion & walsh it only takes a second to schedule your free second opinion. so what's there to lose? speak to hennion & walsh. the second opinion people.

pete g. writes, "my tween wants a new phone.

speak to hennion & walsh. how do i not break the bank?" we got you, pete. xfinity mobile was designed to save you money and gives you access to wifi speeds up to a gig. so you get high speeds for low prices. better than getting low speeds for high prices. right, bruce? -jealous? yeah, look at that. -honestly. someone get a helmet on this guy. xfinity internet customers, ask how to get an unlimited line free for a year, plus a free 5g phone. we will talk green land next

hour. let's get to meghan with more on president elect trump's potential motivations here around canada and how serious this is. >> it'll be an ongoing question how serious it is and how much is bl uster. his gripes on the trade deficit, fentanyl and immigration. on trade for the first 11 months of 2024 about $700 billion worth of goods exchanged between the two countries during that time. they sell us more in goods, we sell them more in services. overall it's a trade deficit of about $55 billion. not huge there. just the 9th largest of all the united states's trade deficits. most of what we buy are is energy. more than 60% of crude oil comes canada, on fentanyl not a lot of that. 40 pounds was seized from the northern border in the first nine months compared to 16,000

pounds from the south. as for attempted illegal immigration it has been rising, nearly 200,000 cone uniters in the last fiscal year. on southern border it's two million yearly and then defense spending, we can say that nato recommends countries spend 2% of their gdp on defense. the united states spends 3.4%. canada spends 1.4% so that's an area where trump always talks about wanting more spending. >> do you -- you follow trade for a while. do you see these threats as trying to exact concessions in the trading relationship or is there something more military and strategic about some of the comments? >> i think a lot of this is about exerting power and influence in trying to do something like be littling

justin trudeau who is on his way out. i have been told from canadian sources i will say that -- the trump team isn't focused on imposing tariffs against canada. they are just trying to get concessions but we are -- trump did impose tariffs against canada in the first term and could do it again. >> thank you. all right. the equity market is down. we will have more coravege of that decline right after this. feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. ♪♪

good friday morning. welcome to money movers. today's stocks are lower and yields higher as david said following the hot jobs number. traders slashing their bets for a fed rate cut in the first half. how this morning's hot jobs numbers impacting stocks and bonds. >> at what point is a stronger dollar a headwind, not a tailwind? one of wall street's top