of 4.78, 2 year is at 4.37 and 30 your is just below 5% at 4.98. bitcoin has been higher this morning, up to about $96,000 hast we checked and still at there, 96, 279. that does it for us today but join us back here tomorrow. we will get the cpi component of inflation data with the number. right now it is time for squawk on the street. >> good tuesday morning, welcome to squawk on the street i'm carl quintanilla and cramer is in san francisco at jp morgan's annual healthcare conference. futures are adding to monday's gains as there is relief on pdi unchanged on core ahead of c prgs i tomorrow. yields are dropping modestly. the road map begins with

tiktok's musk option. china officials reportedly discussing options including allowing a trusted nonchinese party to take control of tiktok's u.s. operations. tiktok calls the reports fure fiction. the housing and retail read on the economy, kb home shares surging and signet sales tumble. and eli lilly expects the new weight loss pill, that's the key here, a pill, tobe approved next year. we will talk with ceo david ricks later this hour. let's kick things off with markets and ppi, jim. interesting internals. food costs down a tenth. vegetables down 15, medical care pretty flat. >> the bonds don't want to react to anything good. you can immediately say it is because we will get a tough cpi number tomorrow. the fact is these numbers are tame. people have to start recognizing that there are good numbers coming. we will talk about kb homes in a

moment. house prices are coming down, food coming down but it doesn't seem to matter. what the bonds are reacting to is a new administration, concern about tariffs even though it looks like they will be phased in. interest rates don't want to come down. there is too much issuance. there is a belief that the next administration is much more inflationary. it doesn't seem to matter what is printed, the bonds don't want to go higher. >> well, it's the unknown and right now i guess the judgment about the unknown is it will be more inflationary. when i say the unknown, we talk about of course so often as we will, the depth of the tariffs, how broad they will be, not to mention deportation policy and again how deep and broad that is going to be because both will have potentially inflationary impact. there seems to be more debate on the impact of tariffs than it does on deporting a lot of parts

of the work force. >> i think that's a mistake. we look at kb homes, the first good report we had when it comes to housing. look, they were still tight. people can't find enough skill workers and the numbers were okay. i know that the margins were not what i wanted. some of that was because they have to do price concessions because mortgage rates have moved up. i see a market, i don't want to say that nothing good can happen because kb homes is soaring on the idea that it wasn't worse than expected. we just have a cloud over everything. i think any time you get too excited about stocks, like yesterday, we got excited about stocks and it was only the dow and not tech. you find yourself saying why did i bid things off? i'm not negative or or positive here. i think it reflects the mood of the market. >> how about the consumer

themselves? we will talk to lu lu this morning. signet is getting taken apart here on their holiday guidance. >> yeah, look, i don't know. they lost a ton. i think shares were remarkable ceo. i think this very ceo led company. this is not a given when it comes to jewelry. look, you can't be saying when we keep seeing last minute things from president biden about what's going on. this place has been completely roiled by what's going on this weekend when it came to sovereign nations being able to have gp, key generative a.i. chips. i spoke to jenson wong last night, the ceo of nvidia, there is just chaos about what this administration is doing at the last minute. david, i don't know what the administration is doing at the last minute. it is almost as if they are saying they will throw up anything. i'm waiting for something horrible oil and gas at the last minute because that would be fitting with what these people

are doing. >> it is funny, they seem to be active in other areas and then i'm talking to people who say they can't get answers on anything in the final days of the biden administration. so sort of a somewhat different picture, jim, in terms of the actions they are taking and the inaction i'm hearing about. frankly that's in part around things like tiktok which you know, where there are people who would like to get some understanding of certain things at this point. i guess it would bring us to that story, guys, you know people may have seen, it was a bloomberg story yesterday, talking about chinese officials evaluating a potential option that would involve elon musk acquiring the u.s. app's operations. that would occur if the u.s. supreme court would uphold the law that requires for byte dance to divest the business by sunday.

tiktok denied the report and called it pure fiction. i did some reporting on this as well. you know people close to byte dance and there is just no sense at all on their part that there is any real truths to this is what i'm hearing, guys. again, you the byte dance and the fact that the chinese government would try to contact a potential investor here in some way seems very much out of character with those who are familiar with its typical actions in situations like this. the chinese have made it more or less very clear that byte dance said if this gets banned, you are not selling it. that's not a surprise. we have talked about potential buying groups in the past. steven mnuchin had interest. you can go back several years ago when there was a number interested but that is not

happening here because the chinese have made it clear that it is not getting sold. from what i'm hearing as well, this musk stuff is just not based in true reality. i don't know, jim. there may have been a conversation somewhere. certainly the real question is what are you going to get from the supreme court? they don't seem inclined to overturn the law based on free speech but there is a hope in the bytedance camp that what they will do is issue an administrative delay which would have the effect of giving it to the trump administration and allowing them to sort of administer and/or interpret the law that has been passed by congress and that could allow for flexibility in terms of what happens here. we may know as soon as tomorrow. there is a plan in effect if it

gets banned on sunday. there would have to be a plan of some kind. we will see what that entails. that's what i'm picking up right now. >> i think i spoke when they were covering it and they spoke there could be a gradual deminution of the service, meaning it will not be totally turned off. the idea that it is giant private equity term leaves me cold. i don't think they are able to broker a deal. you have to wait until 9:04 to talk about elon musk but i say we do it at the top. we have tesla stock moving up 11 points. we have elon muveng being the most important person -- he is copresident right now which i think is absurd. but the idea that you can float this and it has any viability shows you what this man is capable of. this man has become a nation state within -- he's a state

within a state. we have to recognize that's what's going on. >> yeah. >> we have been talking about our new oligarch era for a while. if you believe the times this morning, he will be operated out of the executive office building having already parked himself at mar-a-lago. we never mentioned the price hike at tesla, going to 430 with a bull of 800 on the idea that cars don't matter anymore. it is about a.i. >> when they reported the quarter, it was bad. well, it was below expectations. but the whole dialogue switched and it became robotaxi and then it became technology. this is a neural network company. the giant tennessee land grab of gpu from nvidia, coupled with the brains in the car has made it so we can't think of this as a car company. we have to think of this as an

accelerated computing, a.i. generative vehicle. and stocks were at 200 without that. >> i get it but i don't want to confuse people. xa.i. owns the memphis facility that will be on its way to being the largest supercomputer in the world. the plan being 200,000 nvidia chips, h100, h200s, that's separate from x a.i. >> absolutely. >> but they are separate companies. >> but nvidia said this is about parts. >> no doubt. and the advances that tesla has made when it comes to self driving are very significant in terms of using generative a.i. to do so. and sort of the new approach so to speak in terms of how they are processing. very different than waymo in a sense and the advancements that have been made.

>> much more cheaper. >> yeah. >> and i think more likely to end up on the federal interstate highway system which is another story that we might as well put out there and see if someone can refute it. but who is going to stop rolling out on the federal highway system? >> i don't know. as i have said many times, we need an hour of programming every day called the musk hour. >> right. >> and we just cover everything elon is doing because you could spend an hour every day on doge, the department of government efficiency and what's going to happen there and obviously, tesla and then x. by the way, we may have -- the tiktok stuff is probably not in the realm of real possibility or reality. >> right. >> but i don't know. rupert murdoch lost the case in november, you think of potential buyers for fox, if you want to sell it, it may end up with musk

as well. who knows? it's a never ending amount of content that you can associate with him and obviously coming back to tesla given the enormous market cap there as the main story in so many ways. >> well, all these different companies are owned by musk. i mean, they can be interactive if they want to but carl, when you put together mark zuckerberg's incredibly bizarre, some would say insane interview with joe rogan where he is talk about interactive agent and then you have a sales force update, i think people at home should know we have physical boxes. we need a fourth box which is an agent and we just have to defer the agent because it is entirely interactive and who knows maybe the agent is programmed better than we are this morning. the end of the year hanging out at starbucks, forget about it, you have to go e. i think we should think of the agent as a fourth box.

>> interesting piece in the times yesterday looking at what he argued at the soullessness of meta and its willingness to go into areas like remember the metaverse? we talked about the metaverse a lot and the question is where is that now? and to what degree would a.i. be an echo of this sort of road to nowhere? >> i don't know. i know metaa.i. is supposed to be the most exciting. i find it to be a little more pureiant. when it comes to the meta verse, i thought there was a mall next to macy's. it hasn't turned out that way. the dialogue has switch tiquan dough and shooting pigs. how do you feel? >> they are smart animals. i'm not in favor of it but i can't say i don't like to eat them.

>> 353 words, you want to shoot them? they are a nuisance when it comes to your ranch. on my ranch, i don't have them but on my italian ranch i'm flooded with them. >> are you really? >> yeah, we have 100 that come in on wednesdays. >> they get big, the wild ones without a doubt. they can run up to 1,000 pounds sometimes? like enormous. >> they charge you. they have eight children behind them. i don't know what they have at the ranch. i'm still reeling from that joe rogan interview because it was two libertarians talking about no need for government. it was different. wide ranging is the word you picked and i think that is right. and they are cigalley in italy, not pigs and the meat is excellent. we will get an update on the wildfires as the winds potentially pick up in the

coming hours. we have jp morgan tonhe tape, honey well, and of course lilly, more squawk on the street in a minute.

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national weather service forecasting critical to extremely critical fire weather conditions for coastal southern california through tomorrow due to the santa ana winds. our contessa brewer is out west and has the latest on the fires. good morning. >> hi there, carl. the extreme wind warnings have prompted utilities to take preemptive actions warning customers in most at risk areas, the power could be cut to prevent sparking another fire. southern california edison says

more than 68,000 customers are out of power. state and city agencies have been ordered to stream line the permitting process for debris removal and rebuilding. president-elect trump plans to tour the damage next week. we will wait to see if that informs his position on tariffs which of course there is concern here that it would raise prices on building materials and whether that informs his position on mass deportations because construction labor will be so desperately needed here. it is a very expensive proposition at any rate. accu weather estimates on estimated losses soared. on the high end, looking at a range of $275 billion. and wells fargo predicts insured losses as high as $30 billion. according to analysts at roth, that would be about 3% to 4% of the capital available in the insurance industry. hurricane andrews' losses by comparison, that was 11% of

capital back then and hurricane katrina in 2005 was about 16% of insurance industry capital. a major insurance ceo told me that he believes the losses are manageable. they are being careful about what they say publicly. we are in quiet period. the first of the insurers announces earnings on wednesday, travelers on wednesday morning before the bell. >> interesting. morgan stanley takes a crack at what fires generally do to the economy and they argue generally results in higher core prices, slower employment growth and softer retail sales although kb was asked about this last night in their earnings and their argument was the population in that part of the country is so large that there probably is the capacity to avoid a big material or labor crunch. >> it is interesting because there are housing units available but what you have the experts saying is a lot of these are lower end market where in

these neighborhoods people may be looking for two or three bedroom homes to rent in the nearterm while their own properties are rebuilt. and factoring all of the levels of loss, friends of mine who live a couple blocksfrom the altadena neighborhood said the first grade teacher lost their home, the principal lost their home, the church is gone. when you have layers of loss, how does a community return when there may not be services, restaurants, stores that you are used to going to open in the near future. it is for sure disruptive. i remember that from sandy. it is disruptive at best. >> our attention will turn to federal assistance and how that comes together in the micong weeks. contessa brewer in california,. more squawk on the street when we come back.

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responsible investing. >> let's get to a mad dash across country version as we will do most of this week. you will be speaking to the ceo of eli lilly in a little bit and you want to make it the focus of the mad dash as well. >> yeah, i think you will see a level of growth that is unheard of, some numbers to be put out that are really what you would get at 10 years. $25 billion. initially people will sell the stock because they think it will miss the fourth quart. the fourth quarter was etched in stone that it would not be as good. it is hard to have a surprise when we already knew what they were going to do and it was in line. i subject that people listen to the interview with david rich and figure out what 2025 will be. >> let's give some numbers here because we have not shared the actual news. they put out revenue guidance, 2024, q4, $13.5 billion, about

$400 billion below the low end of recently issued guidance, one reason the spock may be down. they are talking about 2025 revenue in the range of 58 to $61 billion, brother at 32% at the midpoint compared to 2024. >> 32% is a pretty good number. we will ask about inventory, how much was there to sell, the demand side is insane. i care more about demand more than what the numbers indicate. i look at it almost you would on a trading desk. let them sell it. let the uninformed people sell it and then look at the size of the market, reealize it is in the infancy and it is bigger than any drug i have seen. you have to be on the horse, it is eli lilly. >> what do you think a weight loss drug in pill form does to the overall market, jim? >> i think there are people that say business is not going to be

able to excel and it will be a projection on the left side of your body, that people don't want to do that. i would say that the good form would eliminate most objections but we have to hear from mr. ricks. >> let's get to the opening bell in realtime at the big board. creative spirit, a nonprofit, finding jobs for individuals with intellectual disabilities at the nasdaq, it is defiance. etf is back in the neighborhood of 58 or 60 or so. interesting stat. the market weight sp are up by identical amounts over the last 6 months. >> look, that's good news actually. you want to have leadership. i come back to the idea that we have one stock that is the elephant in the room which is nvidia. i believe nvidia has been hurt

by the commerce department's rules. these are the rules that came out at midnight this weekend. they were a little absurd. it picked 18 friends. e.u. has 29 countries. what happened to mexico, israel, iceland? the 100% clean energy. they were absurd and out of touch. i think nvidia can bounce back. without invid you you have a market that is kind of rootless. we know that apple, the numbers look like they are too high. you know the market survives on nasdaq fuel and not on dow fuel and yet people insist on talking about the dow. i defer to you, how important is the dow in terms of looking at how the market is doing? >> not at all, it shouldn't even be discussed. it is a marketing tool and statistically insignificant index because it is price weighted. i don't want to discuss it ever. that said, the s & p is up about 0.44%, jim. and to your point we've got most of the mega cap tech looking

like it is positive, well, i shouldn't say that , mixed picture. your favorite stock, meta, i'm kidding, that was some withering criticism of your one time friend mr. zuckerberg. >> no, not at all. >> oh, yes. >> will you stop? you are so short sighted. look, the issue of rifles taekwondo, i'm not there but i like that meta has profits far exceeding what we think if they would play ball. let's go to apple and see if they will play ball. >> i'm sure they won't. wie would they? they are apple. >> there has been no innovation since steve jobs died, i thought that was inflammatory. >> that was rough snf. >> i wanted to go to them and say could you please tell me -- i wanted to call him on the 72 apple devices i have and talk about how we are integrated

world wide with apple but let's stick with android. >> or you could put on the vision pro and go into that world. >>let them lower the price. i did meta glasses for everyone for the holidays. >> did you really? >> i was part to arabians to begin with. >> everybody? i'm not your family? >> not your kind. >> i sat next to you for 13 years, every morning. >> not my immediate family, no. >> jim, i want to get back to the stock at 1.4%. there were reports out during the show yesterday by the way so i don't want to give too much voice to them but they are around. the headline is basically top customers facing delays because of glitchya.i. chip racks. do you have any thoughts about this? i'm sure you are aware of it or heard the story. >> story comes out.

the day when quiet period begins. that happened the previous quarter, the day when quiet begins. it was done by the information. you know david, it could be the disinformation. remember prav du? i find this attack on nvidia has become standard. i go to jenson wong, maybe he knows more because he is the ceo. he says that 45 factories and getting them out as fast as they can, if anyone is complaining, give me a break. i think next to david ricks' launch, eli lilly for glp-1s, i think this is as successful. i get tired of the attacks on nvidia. they bore me. >> well, they will continue. i understand. you've taken your shots before, no doubt. >> shots? on the right side of nvidia history. >> without a doubt. no one is arguing that. >> when it was $2, i named my

dog nvidia. that was still good. >> it was the greatest call you ever made. >> we are not a political discussion. >> no, we are not. >> you want a political discussion, okay, i'll go to joe rogan and i will do five hours on joe rogan. one of the most jarring things about the rogan interview was he said he had to take a bathroom break. >> someone put it into the rachlt i. engine to see, he spent 38% of the time talking. these things are so long. not that i don't like long conversations but he spoke 38% and zuckerberg was the rest, the other 62. i think that is interesting. that's a lot for an interviewer, 38%, don't you think? >> i think it is. i used to put a stop watch to my show and i got to speak 38% of the time so maybe it is not so bad. >> no, but you were the cohost. you weren't doing the interview.

are you really imply that cutless 32% of the time? >> there was a bit of a stop watch put on him. i have to go to court on this. i think i'm not making money. let's go back to carl. >> i will pick it up, jim. uri is close to the cop of the leader board. interesting this deal for h and e, maybe not merger monday, maybe merger monday and tuesday? >> if i were jonathan cater at the justice department or the ftc, i would veto this deal immediately. in the same industry, this is a driven product, it is another rental. uri used to be a rollout. they stopped that because they knew everything would be blocked by antitrust. we're back. you can merge anyone, why not? you can merge anyone. these are two companies that could compete, what the heck, why don't you merge them so it is better for share holders? >> i think there will be a more permissive environment.

that seems to be the consensus under the d.o.j. and f.t.c. as soon as things get started in less than a week from now in terms of mergers. >> right. >> if we don't see a lot more deals announced this year than last, i think a lot of people will be disappointed. because coming into this year, there is expectations. i have been hearing from deal makers, whether it is lawyers or bankers that not just dialogue is picked up but real offers and bids are being made. we will see if it comes to fruition. >> did you get that from daniel pinto? >> no, i don't speak to daniel pinto, you are referring to jp morgan and mr. pinto. >> maybe you will not need to speak. >> who is retiring. he is the president and chief operating officer. he will be relinquishing those responsibilities at the end of june, retiring from the firm at the end of 2026. he has frequently been referred

to by ceo jamie diamond as his sort of hit by the bus replacement so to speak, a great replacement. yeah. he is being replaced by jennifer piepszak who will assume the role of president and ceo of jp morgan but she is not in the running is the understanding that we have as well and i think leslie picker was reporting on this, for ceo. that according to a source that leslie has familiar with the matter. so interesting, succession at jp morgan. jamie is in his late 60s. my understanding based on casual conversation i had with people at the firm and the like is their expectation is he is going to be there until the building is done, an incredible structure they have going up. it is up but they have to finish it. it will be a little while. >> do you go to wells fargo?

do you go to wells fargo which is where ex-officials of jp morgan go? >> who goes there? daniel pinto is just retiring. >> people who worked at other major banks tend to end up at wells fargo. generally we talk about eli lilly and the stocks are down and people were worried. >> you were talking about it in the mad dash and you said don't worry. >> i happen to have david ricks here and it kind of works. he's the ceo. >> there was one thing i wanted to get to but i don't want to let him sit forever. let me do the supply additional deal. it is small but it is perhaps indicative of a trend we will see more of. bitcoin miners to hyperscaler capacity. they are taking what may end up being $5 billion quarry asset manager. another $4.1 billion over the next few months.

it will help them take capacity they have which is really in the form of power generation contracts. we have talked about this before. the bitcoin miners they have the gpus and they have the electrical power contracts. they are under pressure, that one being one of the key ones right there to transform their business to take unused capacity in particular, and make it into hyperscaler capacity. that company is under pressure from significant share holders. starboard is there and i'm aware of others as well. apply digital deal, small market caps but an interesting theme as we know how important it is to have the gpus and have the power. if bitcoin stops going up, they will probably not make much money. i'm done, jim, go ahead. >> that was great. the power shortage in the country is extraordinary. i keep talking about iceland

being totally renighable and yet they are not a friend of the united states. let's bring in eli lilly ceo david ricks at the healthcare conference. you're the man of the hour. >> good morning. >> let me express condolences about the loss of your father. >> thank you so much. >> we are stunned as usual about the fact that the stock is down. and i don't want to be too pedestrian to talk about the stock because i think you are talking about something bigger than stock. talking about something in 2025 that would be the most shocking, fastest growing drug of all time. why don't you talk about it? >> today we are putting out guidance for the year and we are excited how 25 is setting up. we exited with the business as you are referring to zepbound, mounjaro and the older one, annualizing $25 billion a your, growing 60%. that sets up a year where we are projecting for the company 32%

total growth. that is about what we did last year but on a higher basis. the rest of the portfolio is doing incredibly well as well. high team growth annualizing to $20 billion. really excited about the progress of the company and 2025 is looking even brighter. >> looking even brighter but i heard you say it will be somewhat the same. i'm trying to understand. the reason i point this out, what is critical about you and i talk about the third quarter because i couldn't figure it out. i don't want episodic volatility from eli lilly. i'm not used it being an oscillator. when will we get an idea that it is a straight out ramp? >> we put our best effort into this trajection. we are growing a pharmaceutical product at a rate and scale that is really new for us and the industry. we will get some things wrong and we have. we saw destocking in the channel in the second half. we put that into the forward out look. we don't expect that to come

back. we have seen ups and downs in various parts of the market , people switching between the forms. prediction has been tougher but to be honest, the underlying fundamentals are incredible. the total glp-1 market grew 45%, we grew 60. we grew share in the fourth quarter. we are the market leader in diabetes and new patient starts. we are in great position for the new year. the other issue is manufacturing and supply. we have hit 50% growth in units in the second half of the year. we hit that. now for the first half of next year, first semester, 60% growth. some of that semi is coming online and that is growth on top of growth. so we are excited. >> what is the inventory level? do you have f to meet the demand? >> we have plenty of supply. because there has been supply tightness in the first half of

the year, inventory levels rose in the channels because of uncertainty. as we become a more predictable supplier, people are pulling it down on demand and they are working down the working capital and patients can get the medicine when they want. we finished the fourth quarter with every dose in stock and available every time. we are in a good position on supply now. i think the channel is responding to that. could we have seen that? yes. >> so when is the pill coming? >> we get the first data. next year big tail winds in the business for us. first new indications, sleep apnea, heart failure, et cetera, new markets, mexico, brazil, china, and new forms. so oral glp-1 will be the first data set sometime late q2. that will validate the profile and hope to be as form and that will let us scale in an incredible way. >> let's not skip over this. some people worry about payment.

if the hypertension which is the silent killer, if it is sleep apnea, people pick. i think that people sometimes know you and i both know that the idea that all of these countries just mentioned plus the united states would pay for it can make it for 2025 is a get there one way or another. payers will pay for obesey and recognize that it is the ultimate medication. you americans, most of whom are obese. heart failure is another one. there is so much over lap between the chronic conditions. we will either get it through the data that is proving that the good in a general way but addressing

the diseases. saw rfk and talked about the injections, it to be the right strategy. tell the truth, diet and exercise strategy has failed. >> a standard of care and it wasn't good. we studied against it. in populations where people were obese, they lost about 2% of the body weight. i don't think it is

drug arm, they pursued it and it is a foundation of obesity management. >> saying and we can do a better job of people with exercise and movement. our company wakes up every day and trying to make america healthy. when people are sick, they obesey is a sickness and people need medicine. >> maybe cancer, maybe dementia, maybe all within reach for your drug? ? >> for glp-1 the pipe line and rolling out. the next phase we are looking at

acting and looking at knee pain, back pain and core programs. >> when will you come up with something that makes it so you don't lose muscle with the fat? >> right now that story is man. >> when you lose weight by any means, you lose fat and muscle, whether it is on drug or not. it is a natural process because you are carrying less weight around. so if we had you carry 20 pounds around for a year, you would be more muscular. that is a fizzological fact. older people we worry about this more. we have a program that we made last year that we will study on

top of trez trepside and that will read out late this year early next year. it could go into phase three and into next year. for anyone else, eating protein, and fitness regiment on top tends to work. >> in terms of new administration, ira, i hate to say the inflation ruduction act because it was inflation increasing act. i don't think president trump will have the same kind of relationship that president biden will have. i think he will speak to you. >> already has. we met with him in december. >> well, then to me, there will be not a conviviality because people will be concerned for price of drugs and negotiations. we will have see what he does. it is not the channel but what they pay at the pharmacy. lilly worked with the team to

leer the price of insulin to $35 and that was enacted by biden, great. >> he did that voluntarily. >> we could do that more and lower the out of pocket cost. that will have a bigger impact of health status on americans, industry, and the respect people have from the health benefit they are getting from the government than anything they can think of. we would like to do more with dr. oz and the team coming in. >> people are concerned with the stocks going down. why would you spend $20 billion in manufacturing if you didn't think this wouldn't be the biggest of all time? >> i don't understand the logic of people questioning that. we exit the year and growing over 60%. we are annualizing in 2025. >> do people understand that is unheard of? >> never before seen in our industry. >> we have new indications, new markets, all of these are tail winds on the growth picture over the next few years. it is incredible time in this

space. >> be have another business in neuro science. >> that is a $20 billion business as we exit the year. that would be the number one pharmaceutical company in growth. we are running a great business on two parts and excited about both sides. >> you can make acquisitions if you want. >> we announced a share buy back program in december and increase in dividend again. >> david, congratulations. i think there is a lot of misinformation on what you intend to do and how important the drugs are. short-term, let people sell it, that's my job , not yours. but longterm, you are crushing it. >> we are focused on inventing new medicines and longterm growth of the company and on those marks, we are doing very well thank you very much. back to you. >> we will get thoughts on that interview in a few minutes. bulls working on the bounce in the wake of the cool ppi. bonds lower on the short end.

10 year stuck around 4.8. nasdaq is up 6/10, tesla 3, and best day for home builders since november. don't go anywhere.

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let's get to jim with stop trading. >> yeah, honey well doing what partners want which is to split automation and arrow. people thought this would be a great idea. whatever honeywell seems to go is disappointing, a lot of that is because of the earnings which is not up to snuff. i think this is an opportunity. the stock is down 5% for the year even though they are doing smpg that could be like what ge did when they split into energy, healthcare , and core aerospace. i think the stock is a buy but people want tosee the quarter which they think will be a disappointment. and they want to sell ahead of it. i say let them do it.

>> i'm not sure the street took some solace in your interview with ricks. lilly down 8. >> look, i think the problem with eli lilly is as david ricks admitted is there have been some mistakes. they have not done the launch as easily as people thought. i say as i said at the beginning, let them sell it. in the end, this is the glp-1s is the greatest drug of all time it will be used for multiple applications. people want toed him to say that it would be the best year. he doesn't do that. now i can say you can't buy it back right now and i wish i could, down 8%. i think it goes down 10% as we get rid of people who don't understand the story and then we get people who understand the story and come in and buy the stock. >> how about tonight, jim? >> i have a host of people. are we doing regenron which is

another stock that is bizarre. and merck is down badly even though they have keytrudea. and then tremendous stuff when it comes to dipeat ozbut cardinal health a middle man that people didn't want to own it. but it turned out to be better than expected. i would do the opposite of everything i said in terms of where stocks should go. everything. , take the soert side of every trick. >> that is a lineup. look forward to going over the banks with you, 6:00 p.m. eastern time. >> definitely. >> when we come back, lu lu lemon's calvin mcdonald with the dow up 75.

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good tuesday morning.

welcome to another hour of squawk on the street. sarah will join us for the big show and an interview with lululemon ceo. the cpi tomorrow. three big movers we are watching. signet getting crushed after the retailer cut sales guidance. kb homes surging after deliveries rose 17%. united rentals is a top gainer acquiring a small arrival in a roughly $5 billion deal. we have some inflation data that came in cooler than expected. it sparked a bit of a rally in the equity market. let's get to steve. he has a closer look at the underlying numbers. >> finally some good news on inflation.

the producer price index coming in better than expected reaching hopes that the worst may be avoided in tomorrow's consumer price index report which is the more important of the two. coming in 0.2 instead of 0.4 last month. the quarter flat. take out, food energy and trade actually fell 0.1%. the headlines still showing some in the pipeline. looking at the details, food declining after massive increases last month. some related to avian flu. they were down this month. energy partly higher. trade down 0.1%. one concern is that domestic air travel prices rising 6.8% on the month. some of that could carry over to the cpi but the good news is another do sake for services.

senior economist ben ayers writes that tomorrow cpi report clears the way for softer inflation readings in 2025. that's one of the expectations that we don't get the big numbers that we had last year. probabilities, june 55% from just one cut. that is the first time he gets over 50%. in december, we really can't price and that second cut. it's a 32% probability. comments last week, believed that the fed does not need to be restrictive or supportive on the fund straight. policy should be neutral. it's just about where it ought to be right now. >> you mentioned airfare. pantheon with the biggest december rise in ppi for air travel since records began in

2001. i see some core projections getting lifted on that. >> that would lift it. it would be an area of concern. if you heard what delta was saying. the hotel rates apparently are higher. people are traveling. it's one of the reasons why it is hard to say the economy is not doing well because a lot of that travel is a completely discretionary thing that people deal. it's hard to say we are in a bad place when people are traveling, but they have kept the capacity down. if i sound a little angry at the airlines it's because i am. the plains are very crowded, they are filling them up, and they are charging you top dollar to go. that's a good sign. it will feed into the inflation report tomorrow but as you know the big story is the pce. it's not something that will get the fed to cut, but at

least they might be on hold. >> a couple of important days we are in the middle of. let's get to the broader markets as well. ryan joins us the chief investment strategist. the target for year-end 6700. do you have concerns right now? >> no concern. good morning and happy new year. we continue to think investors are too focused on momentum and macro. we've been saying this for a while. we think so many are being focused right now. they are saying the fed will not cut at all this year. i think we need to settle down and let the stocks do their work. we are in an environment that normalization has begun.

we are entering into this where we have some -- high single digit low double digit performance. a trading range for the 10 year treasury. we are so focused on this 5%, 4.8% number. how about a range of four basis points. in terms of valuation, at the higher end we know that but if you take a look at the high teens low 20s multiple it is actually quite normal. i think that everybody needs to focus less on momentum, less on macro and more on bonds. >> so 22 times? that's more normal than we might otherwise think? >> again, if you take a look at

the last 50 to 70 years it is quite normal. especially if you take out some of the other extreme areas. if you take out the 90s, you take out the 40s and 50s. you have to take a look at things from a longer-term perspective. we have learned that the markets were actually around before 2008. bmo has learned the markets have been around before 2020. we seem to have this short-term focus. i think this is time for perspective. it is time for longer-term holding. i think we are very blessed because we have the opportunity to run for people on wealth management on the exposure. we had an amazing performance because we hold onto the stock. >> are you worried about the

school of thought that looks at negative equity risk premium? for the long-term return of equities? >> i am. it's a wonderful point. i do think from an equity risk premium they don't look as expensive as most people think. i do believe that over the next 10 years the majority returns from fixed incomes coming from yield. if you take two steps back and look at the bond market the last 40 years the majority of returns have come from price- performance, not yield. i believe where you have high single digit, low double digit performance in the midst of this 25 year market hat we have been talking about since 2010, bonds and a 60-40 environment make a lot of sense. bottom line, you still want to be in u.s. assets whether or

not they are stocks with large, mid, and small growth value but also shorter-term treasuries with respect to the 10 year. >> the multiple gets pushed higher as a result of a handful of stocks that traded much higher multiples. they may deserve it because they have higher growth rates, but i'm curious how you view that bifurcation we have been talking about for years. >> it is a great point. i think number one you get exactly what you pay for. the big technology companies on screen right now i really the new staples. i'm not saying this is a rational exuberance, what we are saying for tech is the core holding the men on the barbell on the side of owning smaller cap tech. with respect to the overall market, we think the

projections are too low principally because one of the biggest parts of the market data really since the credit crisis have been massively underappreciated, massively under analyzed that are still very negative. we think from a bottoms up basis financials will be the pick to click as earnings are way too low and way too negative. we see the massive deregulation which we think will happen will really be a huge tailwinds that nobody's talking about. >> i am sure we will talk in the coming days. good to see you. >> thank you so much. let's get to the latest on the california fires. steve patterson is in the porter ranch neighborhood in los angeles where we can see the winds are certainly pretty strong.

>> reporter: that's why we are here. we are hearing about a particularly dangerous situation. that's the official designation. it is meant to be a particular elevation from the normal red flag winds that we normally have on the ground. it's even worse that the last three times we've had this designation it has led to serious property damage including the worst fires in california history. meanwhile, there's great worry that as this goes down to lower elevations we are seeing wind gust 60 to 70 miles per hour. as this comes down it could start new fires. overnight firefighters doing their best to battle some of those pressures fires we have seen. the real worry is the major fires we have had. the palisades fire 14% contained. the eaton fire 13% contained. this could easily move the fire somewhere new causing a lot more of a mess.

there's also the possibility of electric shutdowns for several thousand customers in the area. want to limit the fire danger, but we are in severe fire danger with the national weather service calling it as bad as it gets. meanwhile the investigation continues. the atf looking at the palisades as a possibility of a human start. right now they are keeping the scene flocked down from people that are picking up the pieces of their lives. with this wind event the zones are still off-limits. >> a difficult calculus for businesses as they try to resume work aware of all of the risks in the coming days. steve patterson, thank you. looking at the roadmap for the rest of the hour. it's been a volatile year for nvidia and the semis. with the latest action from the

white house means. the biggest banks are gearing up for earnings beginning tomorrow. sarah is at the retail conference with the ceo of lun. we will be back after this short break. pull fast, not hard. don't be afraid of the birds they're just as scared of you. can i ask you about some financial stuff? you know i hate giving out advice. talk to a financial professional today. feel comfortable about tomorrow. massmutual. (man) robinhood gold members get an ira transfer boost of 2%. when you transfer in an ira or old 401(k) by april 30th, robinhood gold will boost it by 2%.

it has been a volatile start to the year for nvidia overall. today president biden issued a

new executive order to speed up the construction of a.i. centers and strengthen national security. this is just one day after announcing a framework that would limit the scale of a.i. chips outside of the u.s. joining us now is stacy raskin. always good to have you. what you make of these new regulations and the impact they have on some of these companies? >> it is a little hardge -- hard to judge impact. they are putting constraints on the amount of compute capacity that can be shipped to a certain number of countries. there's 18 countries where there is favored nation status, kind of business as usual. they can build as much as they want in those countries. there is a set of country, china and russia and ones that are under arms embargo. none of that will change. it's the other countries where the interesting dynamics happen.

those countries have very sharp limits on how much compute capacity can get put in them unless the customers themselves sort of agree to conform to certain standards. basically be good citizens and the like. those customers can build but they will be limited by how much they can. if you have to run through it it is probably manageable for now, but my guess would be as we go along over the next year's these constraints are probably unlikely to loosen. they are sort of in an arms race with other actors in the world. these are likely to tighten up. in general that sort of thing is not great. right now the overall demand is such that they can probably work through. it does seem workable but it remains to be seen how the dynamics will play out as we go forward and how

the different kinds of constraints continue to be tightened. then the new administration roles in. >> are your expectations that they will maintain the roles that have been put in place? >> the companies that have been impacted, nvidia and others, they have been sort of going after the new administration to advocate for themselves. i understand why the biden administration to this but at the same time, doing it one week before the administration changes feels a little shaky. i will say, i'm not sure that the incoming administration -- in general the idea we need to be tougher on other areas and u.s. first, these are things that i think the new administration is going to want. i don't know whether or not they will be pulling these. there are some aspects they

maybe won't like but in general i think the sanctions won't get looser. >> how do you explain to folks why you think the administration did this. >> it is their last chance to do something like this. the general idea of trying to control from a national security standpoint. i'm not sure i necessarily agree with it but i understand it. they will force the new administration to do something about it but they put a snake in the ground with one week to go. >> today's highest performance chips are tomorrow's lowest performance chips. how does that end up working? is it just that we want to stay ahead so one day we will be able to get these or not? >> when you go through the regulations it is preliminary. it does not seem like it is draconian.

i think when some of the stories came out on this last week people were really worried they would not be able to ship anything or the amount would be very curtailed. if you look at the favored nation countries they are the major ones were a lot of this is going. the u.s. can build it as much as they need in the u.s. they have leeway to build outside of the u.s. when you read through it they were not necessarily as tony n. they were fairly severe. they were not as completely draconian as people fear they might be. but when the new administration comes in it will be volatility every day. i have said this before but when trump was president last time the first thing i would do is check twitter to see the policy of the day so we will probably be going back to some of that volatility.

>> i think we will be doing the same thing you are although it is truth social these days. thank you. >> you bat. financials have come full circle since the postelectn llioray. we will talk about what investors need to know in a moment. discovering innovation today, helps drive growth tomorrow. as a leading global asset manager, pgim has established a track record of helping investors capitalize on growth opportunities. pgim investments. shaping tomorrow, today.

one day away from big banks kicking off the yearning season. j.p. morgan, goldman, city and wells expected to report. >> a busy morning and is a week packed bank stocks have come full circle from the postelection low where the prospect of deregulation has sent them soaring. looser requirements and what they mean for buybacks remain in the question. goldman sachs estimates about $185 billion in excess capitol, some of which could be returned to shareholders. over the last year plus, banks have been warning despite a

stronger economy due to the expected hike. now with the new administration and increasing turnover it is highly likely the new roles would be far less onerous. they could purchase about 4 1/2% of its market cap. they estimate the banks would have $90 billion in excess capitol if they were to be tougher than originally proposed. any buyback regulations would be key as j.p. morgan, wells fargo, citigroup, kickoff earnings. >> i referenced your reporting earlier on intel stepping down and being replaced, then there is pinto as well.

>> doug petno is moving up as daniel pinto steps down. anytime you see a management shuffle of this nature, the question everybody wants to know is what does this mean for succession? what does this mean for the timeline as ceo of the firm. talking with sources, i'm told the timeline for him has not shifted. he said in april or may of last year the timeline is going to be less than five years so maybe 4 1/2 years. he may step down as ceo. importantly, she was seen as a key contender. i am told that she had reached out and made it clear she would

rather have that operating role, the coo role which leaves three main candidates for the top ceo role which are the three business leaders that you mention. dog petno as well as mary like that runs the consumer business. >> as for goldman, a couple of pieces of news on the tape. one is about banker bonus seasons than yesterday on the big financing push and the so- called capital solutions group. >> it makes a lot of sense they would put everything under one roof there because financing solutions, a lot of their peers in the alternative space kind of do it that way. they will offer any type of solution the customer wants

like a grocery store for lending. it makes sense they would structured this way. they have done a bit of rethinking for how best to bring together individual businesses based on what their clients want. >> thank you. earnings get started very soon. after the break we will have lululemon ceo joining us. they raised their revenue and earnings guidance which will be part of the conversation. we will be right back. ly one vehicle lineup that embraces everything the cold has to offer. the official vehicles of winter. jeep, there's only one. right now, during the jeep start something new sales event, get $3,500 dollars total bonus cash allowance on most 2024 jeep wrangler gas-powered models. hurry in today.

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welcome back. president elect trump's controversial pick for defense secretary is testifying right now in his senate confirmation hearing. pete hegseth a veteran and former fox news host facing questions over limited management experience and allegations of sexual misconduct and it -- excessive

drinking. is also expected to answer for comments including that women should not serving combat rules. special counsel jack smith releasing his report over the 2020 election interference. he said a jury would have convicted him and he made false claims and inspired his supporters to commit violence. trump calls the findings fake. a new research study finds nearly half of remote workers in the u.s. say they would put their jobs if the employer made them come into the office. women, workers younger than 50 and those that are fully remote are more likely to say they would leave. >> thank you very much. about one hour into trading the dow and s&p holding onto some moderate games in the wake of these inflation numbers. goldman sachs ceo david solomon warning that the battle is not

over. take a listen to his remarks from just over an hour ago. >> i think we are in a more fragile place. i am optimistic but we are in a more fragile place. there's no question that inflation has taken a toll and it has affected average consumers meaningfully. inflation is cumulative and things are more expensive. when you look at inflation, there's no question with respect to goods we have made progress. especially durable goods. services inflation is still quite high. >> let's get to sara eisen who has a special guest. >> reporter: i'm here with calvin mcdonald, the ceo of lululemon. we just did a fireside chat. it is nice to have you. >> great to be here. >> reporter: fresh off some big news. you just raise guidance for the

holiday quarter. what did you see from consumers? >> we saw success and momentum in all of our markets around the world across both men's and women's, across the categories. similar to what i've been sharing the guest responded well to innovation and newness which we continue to get back to historical levels which we will be. a good full price business strength. we will come in below where we had guided through markdowns. >> reporter: that is why you raise sales and profitability. the question is how much was in the u.s. and are you seeing a resurgence they are? that has been the push back. >> we have talked about the opportunity in the u.s., particularly women's. the men's business has continued to perform well. we know what our opportunity is. it was some product decisions we made versus the consumer or the market space.

we had more newness. she responded well to that so we are pleased with the results across every market and obviously focused on q1 of 25. we are pleased with our results in every market. we saw a good adoption of our product. >> reporter: specifically in the u.s. you've been talking about newness and expansion of sizing. what will we see in the store that will drive the growth back in this part of the world? >> the sizing was more about depth of in stock as we saw the curves shift and change. we are in a much better position there. you will just have depth of availability and stores would be the shift i would say the consumer would see. we have not dramatically changed the size profile and stores. we will continue to see the newness and innovation getting back to historical levels that we have carried. we hit that

mark in q1 of 25. we have progressively getting better through 24 and we have seen the results and that in the way that the guests responded. >> reporter: the stock is down almost 3%. it barely moved yesterday and has underperformed. what do you think investors are missing? >> the stock price is a reflection of the u.s. business. we have been very clear about what i missed opportunity was. that's the work the team has been in. we have shared the plan to get to those opportunities and what we are doing. we are very focused on what we control which is the performance side of the business. i believe we are doing that. it is showing in the results

and supporting the narrative which is that yes are there, we just need to convert and bring the product back to historical levels which will continue to drive the u.s. business. the shareholder will continue to move upward. it has moved light -- nice since the low 24 and it is supporting performance. i think that q4 supports what we said and will continue to drive that. >> reporter: is any of that competition from other brands that have done so well >> any of that cutting into the u.s. business? >> for us it is not. we grew share in the premium athletic market in q3. we know what the opportunity is. it really is the missed opportunity. there's a lot of share in large incumbents that we are acquiring. we never have 100% of ur guest

wardrobe. i don't think it's coming at the expense of our business so we are focused on servicing the guests in the way that we do. we believe the brand is still differentiated in the marketplace. we offer high performance high style that others are not offering. we just need to continue delivering the newness. >> reporter: how about china. growth has been strong but some challenges on the macro side with spending and consumer confidence. >> we continue. in mainland china business was up 39%. china played into the race of guidance. we are pleased with the performance of that market and q4 as well. we are early and all of our markets. we have opportunities in store growth and digital and product innovation expansion and we are pleased with the momentum.

we continue to monitor the macro but at this point we have not seen a material impact. >> reporter: you had a big announcement this week. we are not used to seeing big sponsorship brand deals from lululemon. maybe that is one reason you are more profitable. are you changing the strategy? will he see more marketing spend like that? >> we definitely have been investing in brand building and marketing. it's an opportunity to continue to drive business so we will continue to make those investments. men's awareness is quite low. one thing we do know is people respond well to merit -- male athletes wearing a brand. we will not be a brand that does hundreds of thousands of

these types of relationships. we are very selective of who we want to be in a relationship with. the athletes we have we are excited about. we are super excited. he won his first match and we are just excited with the relationships. tennis and golf in particular are the sports where we have added ambassadors over the last year or two. these are activities where they can perform and where our gear. i think it brings awareness. >> reporter: finally, you are facing the question on tariffs. how much exposure do you have from production if we start to see the tariffs rise? >> 3% of finished goods are produced in mainland china. .3% in mexico and 0% in canada. if they go broader than that obviously like many others we

will have a greater degree of impact and we will have to make adjustments. >> reporter: overall manageable? >> manageable if it is targeted to those regions. if it goes broader than that, it will be an impact and we will have to look at a variety of factors as well as pricing. >> thank you. we got through a lot there. i appreciate the time. it is always good to see you. calvin mcdonald, ceo of lululemon. >> thank you. we will continue to monitor tiktok's future. we are a week away from a potential ban in the united states.

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the clock is ticking on a ban on tiktok. bloomberg reporting that they are considering selling the u.s. business saying the report is pure fiction and they cannot be expected to comment. joining me to talk about it is peter harrell. it is good to see you. this has gotten up fair amount of pushback. i wonder if things are clicking for you >> i think this is something we see the chinese side float as a trial balloon. i have not gotten any evidence mr. musk is pushing this forward. there are american firms that

have expressed interest . i do not think it will happen in the next week but if it happens after the ban comes of course, it would then fall off. >> what has been your view of this saga? quite the saga. president trump try to ban it at the end of his first term. biden debated it for a long time and then congress got involved. i served in the national security council for a few years. i security risks are real and i think a sale that rewards shareholders and makes sure it is a hugely important media asset is under u.s. ownership is an appropriate outcome. the other thing i think of tiktok and this whole issue of foreign control and media is new it actually is in.

the u.s. has long been worried about foreigners owning radio stations and tv stations. if you look at one of the reason rupert murdoch became a u.s. citizen is because he wanted to buy fox news and he had to be a u.s. citizen to do it. it's kind of a new application of an old issue. interest in allowing them to sell tiktok. we are faced with the real possibility of it being shut down. perhaps that will change after sometime. other plans. not quite sure what they are. what are your expectations if and when it is shut down? >> it is coming into force on sunday. i think what you will

app up on your phone you will probably get a notice saying it is not available in the u.s. that's what happens in india. that is what happens in india which band tiktok back that's not necessarily true. they could choose to keep the app live. the law prohibits new downloads and updates and things. it's possible if you already have it it might exist and degrade over will see an india like outcome. what can tiktok do? one thing they can do is sell. i discount a lot of the statements. tiktok had we won't be sold because they were challenging the law in court and they don't want to encourage lowball offers. i'm not sure that will be the case after sunday when their choices

-- i think they may revisit that. there are obviously a couple of consortiums out there including project liberty. i think we may see a sale. what you will see is user migration to other competing apps. under the law one final point, it would apply to any other company owned by bytedance as well. >> i think there is a hope that with the supreme court will decide is not to overturn the band but at least to punt it to the trump administration, issue an administrative delay. the trump administration, as you know he has changed his

position and is now potentially in favor of keeping tiktok. they would interpret the law to the extent you are familiar with it. is there a lot of interpretation that could allow for some flexibility? >> i reread the law to make sure i was fully up to speed. the first thing i would say is even if the supreme court does not extend the deadline beyond sunday. i saw the oral arguments. i would be surprised if they extended the deadline. under the law, even if it comes into force, if there is a divestment after, if it was a week from tomorrow tiktok would then be available again. he would have two or three days where it was band and then it would become available again. so whether or not they extend the deadline there will still

be opportunities for the trump administration to weigh-in on this. the law is drafted to try to limit that discretion. the president would have to certify that there had been a qualified divestment. there are some criteria in the divestment about a transfer of most of the relevant ip to the u.s. are at the very least a u.s. company is not contracting with china for most of the algorithm. the law is drafted to try to avoid that and to make sure there's a jenny wine and real divestment. there's a great degree of lawyer rising that goes on out there. you can think about scenarios where trump tried to make it relatively easier for bytedance to have some relationship there going forward. he cannot just simply wish the law away. >> finally, you mentioned that

you thought the risks around foreign ownership were real. are there instances or experiences you had that informs that view? >> i think the security officials who have looked at this really see two major risks with tiktok. the first is a data security risk. this is collecting your location, social graph. risk that the data is going to china to be used for espionage. the other big one which we have seen some recent research about is that the algorithm could be manipulated in order to serve this propaganda or other kind of pro-chinese convent -- content. that is a really hard one to mitigate. you can picture ways to mitigate data security risks, but the propaganda risk is real. >> an interesting discussion as

we work our way to the 19th. thank you. >> pleasure to be with you. interesting to note. meta shares have not reflected the potential ban. >> reporter: they are planning to cut 5% of lowest performing employees in the latest round of job cuts. bloomberg was the first to report this. we have confirmed this news with meta. mark zuckerberg saying they typically manage out people that are not meeting expectations. now they are doing more extensive performance-based cuts saying the company it intends to read 10% which they are calling on regrettable attrition which includes roughly 5% on regrettable attrition from last year. so this is looking for effectively 10% job cuts at the

company. mark zuckerberg saying the company will provide generous severance. the stock is down 2 1/2%. it was trading lower before the news came out. >> we appreciate that. the s&p is up about 10. let's get back to sarah at the nrf. >> reporter: we will talk to shopify in a few minutes but we want to talk about the u.s. steel-nippon steel . they are really focusing on the ongoing feud between nippon steel and u.s. steel and that merger. >> china is bad. china is evil. china is horrible. japan is worse.

japan is a lot worse. japan taught china how to dump, how to have over capacity, how to overproduce. >> the spokesperson for u.s. steel saying, quote, this press conference remarks are another attempt to shift attention away from the illegal monopolistic conspiracies he has engaged in all in the face of declining performance at cleveland cliffs. the gloves are coming off. u.s. steel continues we are incredible disappointed in these unsubstantiated attacks toward the outstanding local leadership across pennsylvania. many members of the u.s. have supported this. i know that he still believes in this u.s. solution for ownership of u.s. steel. it is still going to be a fight. i would just add on the japan

stuff which is really what it's about whether there's a national security risk whether they are in an trusted partner. i would note that about a month ago nippon steel was found by the commerce department on an anti-dumping case and was levied a price for that so this still goes on right now. i think if you are at cleveland cliffs trying to make the case there's national security concern there you would point to examples like this that are still happening. >> he has been for some time. yesterday i reported cleveland cliffs has partnered on a bid that will sit there for some time because the termination date for the deal under the rejection by president biden has now been pushed back to june 18. same day for the merger agreement between nippon steel and u.s. steel expires.

there is no need for cleveland cliffs to come forward with the bid but they do have that agreement and they would offer something in the high 30s. the stock is up and was up yesterday on that as well. we have a lot more market coverage for you. sarah has more from the nrf as well. don't go anywhere.

we are live from retails biggest show. everyone from tapestries to home depot and microsoft is here this hour. we will speak with shopify's president, harley finkelstein. they are powering 10% of all u.s. e-commerce. em what are you seeing from