after cpi or on the court number, lots to still cover. "squawk on the street" will pick up with that tomorrow and -- right now and we will see you back here tomorrow. good wednesday morning. welcome to "squawk on the street." jim cramer is in san francisco. a wave of relief washing over the market as cpi tends to cool. yields are lower across the curve. the banks look clean across the board. small caps nearly 3% this morning. economic expectations and what

it'll mean for the fed's rate cut pass. plus, a rally ahead of the open. goldman, citi, wells fargo, j.p. morgan all across the tape here record profit across the corridor. the countdown for tiktok potentially being shut down. yes, we are in the middle of it awaiting a supreme court decision as well and we could get that as soon as this morning. let's start with cpi. jim? >> looks, what can i say? people have said again and again if it comes in line that would be bad but in my number in an atmosphere we felt everything would go explode to the top and we would see 10%, all of these crazy things, all off the table at least for today, david, but what works for me today, negativity about interest rates

and positivity about earnings. if you take the interest rates off and look at the earnings, people will be pretty optimistic and that could be sustainable throughout -- i don't know. a little while. these are great numbers we saw this morning. >> we are starting to get conference calls. jpmorgan's conference call began. leslie will wrap it up here goldman is coming, citi, wells. giving us some sense of the current environment and what expectations are so we can move for example but the numbers themselves -- i mean, j.p. morgan, 17% return on tangible common equity 21%. goldman, 12.7% for all of 2024. 14.6% return on equity for

goldman in the fourth quarter. compared to a year ago, far stronger. we are seeing reactions from all of the stocks and i would note jim and you know this well very often we see things selloff even when they have typical earnings days where they are fairly strong in terms of the numbers. >> i think that is true. i think the difference at least from when i talked to the ceos on the calls were little more positive. i think we all struggle to try to get a handle on this notion of optimism. you know, carl, when you see ceos, you try to figure out what has happened in the country since the election. it's a peaceful transition, a much better environment for deals, but what's going on is a belief when it comes to the banks there was some sort of

tyrannical regime and i've heard elizabeth werner's name mentioned this morning. she is the bank regulator. if they are gone maybe there is a way for -- carl, i don't know. the bank stocks have let us down by 10:30, 11:00 in the morning but it's a different attitude. >> we are coming up on two years, jim, since we've had serious problems in asset management regarding at least the regionals and their loan books. i wonder whether you are okay with a clean sweep of the industry versus regulators and oversight. >> the one i want to focus on there is wells fargo. they've had the worst rate since 2017 and finally they are putting a lot of that behind them but more importantly is this notion of tone. you know,

just the way the biden administration is going out and as we just talked about, carl, they are facing a lawsuit over allegations of improper premerger filings. david, you have filed kkr for years. this makes it sound like a bucket shot. what is this administration doing on the way out? it has become a clown show. >> they are throwing a lot of things out and with a robust response is always from his lawyer. yeah, there is a lot of that but getting back to wells, your buddy, charlie, speaking a good game, saying he is excited about the opportunities ahead. >> he is good. >> we believe we will drive higher growth over time.

credit card business continues strong growth. very positive comments within the release itself. >> they are the international bank, david. they are the middle-market bank, the market that seems to be the most connected to the footprint and the numbers were superb. did you say my buddy, or my pal ? >> i think i said your buddy. >> zuckerberg is my pal. other ceos are my pals. >> you've got a lot of pals. amongst them, i remember back not that long ago i thought you guys were pretty tight. >> you know, tight with lisa, my wife. charlie knows my wife, so maybe

you are onto something. i like that concept, but it does not revolve around me. i will say this is the hand that charlie has been waiting to play. he's got a lot of guys that used to be at j.p. morgan. he brought back a ton of stock when it was incredibly cheap and he has always been a great technologist. we have not seen that work yet. yes, you can be bullish until 11:00 a.m. today. >> the banks had a great year last year overall. it was the earnings, carl, we would install the virtues of the report and watch the stocks suffer but overall we had a good year in the stock market. >> goldman, more than half of revenue came from business lines, outside sales and trading. jim? >> goldman is excited about the

market. i have criticized this. come on. over and over again. i don't know if biden or whoever was running it last year at the end here understands the power of the market. and david, you can speak to this. you've got the head of the ftc suing companies. if that is taken off the table, even if the ftc is in the next administration, the idea of not getting sued is pleasurable. you can dream. david, no one can dream of a deal because they are afraid of being sued. you don't like jail or getting sued. >> there are plenty of things on the show we fail to cover that we should but this is not one of them. the three of us sat and talked repeatedly. by the way, it rattled around

in your brain endlessly for years. this is not new. yes, we are well aware of the impact of the doj, your other buddy there. >> i was told by my lawyer he did not like big tech. carl, they hated big tech. did we cover that story? >> to your point, there are -- i mean, my only question now is hope is so strong for an incredibly strong year and my only question now is whether, in fact, it will be fulfilled or if they will fall short of expectations because people in the industry have gotten so optimistic at this point. a potential deal. >> david, what was incredible was when you get them off-line,

they say, you know -- i don't know about the other, but president biden, he hated the bank. president biden, he hated the drug companies. he hated the restaurants. he hated retail. i don't know if he was around to hate this stuff, but carl, wasn't -- windmills! windmills! he will be known as the president of lamacchia. >> we will hear from the president tonight in his farewell address talking about his accomplishments. 16 million jobs is more than we've gotten under obama, bush, trump, and the best stock market in the last century. >> people were worried about too hot a market for jobs. if we worry about the stock market, the stock market was great but i think it was done in spite of the administration

and maybe you can say, look, maybe there were people who needed to do better in this country and they did do better and that's fine but in the end, carl, we are stuck with this regime and these people want to do even more. you can easily say, do you know what? you made a ton of money but from the point of view that i speak with, they want to do more. maybe we don't need to grow 3%. maybe we can grow more. >> we will stop talking about this very soon with the inauguration days away at this point but to make your point the antitrust regime and those enforcing it under the biden administration said there had not been a great deal of enforcement since the 1980s, since reagan came in and it resulted in the workingman so to speak, the working person

being disadvantaged, jim. that was the approach and they made the argument and everything in the last administration was designed. they certainly did not get what they expect. >> then why didn't they vote? >> that was the overarching argument. we debated plenty at this desk for years. now will be a very different approach. >> look, i will temper the negativity. i have spent too much time with ceos, i admit that. there is tremendous job growth in this industry and a lot of money was made. i think it has to do with the fact in the end there are a lot of companies in sectors that felt this administration was antibusiness. maybe it is that niche thinking versus the broad thinking of how people did so well during this period, but i feel like business felt they were not a

force of good under the biden administration and they hought they were doing well or were more trustworthy than politicians. >> to david's point, we have talked a lot about this pendulum swing within gdp from capital to labor. it lasted about five minutes and now we will go back to an administration that is stocked and advised by billionaires, several of them. >> the oligarchs are back and will not be kept in the waiting room and told the president went home tonight. so forget it. you have got to go back. all of that is tone, but look, we are resting this idea, can you just say do you know what? everyone turned out to be for trump. they weren't for trump. they were not -- they wanted to be respected. david, if you are a billionaire, who cares if you are respected?

but at the business roundtable from cisco, there was an ocean you couldn't do anything right. that is the ceo notion. may be the uaw felt we probably had our chance but they didn't get a second chance. >> no doubt. to bring it back to all of the sentiments you just discussed in terms of ceos and confidence will result in very strong dealmaking, maybe even some ipos, who knows, and generally positive future for many financial institutions in the country reported today. not to slack citi, but it's always interesting, jim, their return on common equity is 5.4% . they did get up to 6.1% for the fourth quarter but goldman, 14.6. j p.m. is 17.

>> citi cuts the target. let's talk to leslie picker. >> it may have been his op pick but it did not perform as well as the others last year, so -- yeah. >> by the way, on the jpm call, asked diamond you can't be treasury secretary. will you stay around a few more years? diamond's answer is yes, base case. >> base case? >> yeah. >> four to five years. he has been in that job over 20 something years. by the way, did you see mike rowen? >> he is your guy. >> you are right, he is my buddy. >> diamond is from queens. you guys love that stuff. >> he is my buddy too.

>> take a look at the premarket. we are in for a major up open on the cpi number. we'll get to that and talk about quantum getting new life today, some nvidia news, and the relief efforts in the california fires. "squawk on the street" is back in a minute. i don't think you know how owls work. get two pairs of progressives and an eye exam for $149.95 at america's best. (traffic noises) (♪♪) the road to opportunity. is often the road overlooked. (♪♪) at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. because we believe the more ways we all have to move forward.

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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. when it comes to the california wildfires the national weather service is forecasting a particularly dangerous situation for los angeles and ventura county. contessa brewer has the latest. >> reporter: hi there, carl. yes, at the staging center,

there is an army of first responders. the action is picking up. we have seen truckloads of guys getting ready to go back out into the field to make sure the hotspots are out, to be on alert because of those winds and the potential for other fires. they are most concerned with safety as residents are allowed to go back in. they are looking at wires, dangerous debris, and they are really focused on the residents wanting to return to assess the damage so there are new staging areas as well for those people affected by this disaster. there are disaster recovery centers and insurers walking people through the claims. state farm has received 6700 home and auto claims. morning start out with a note warning california absolutely needs to allow risk-based pricing in the near-term. that means we have to let those

rates reflect with the real risk is. otherwise insurers will continue to flee this market. in fact, he writes this means premiums will likely increase potentially affecting property values and leaving some homeowners without insurance. that would, of course, factor into some decisions on whether people will rebuild at all. governor newsom did issue an order for soliciting lowball offers in los angeles for the next three months and a piece of good news i was talking about on squawk box, we just learned that some palisades school kids displaced by the fire can return to class today. they have been assigned nearby schools. these are all factors, guys, that go into what will it look like if we decide to go back and live in the neighborhood again, if our house is standing?

if we have to relocate, for how long, and is that a permanent relocation? >> kinshasa, i thought you would find this interesting. jpmorgan looked at homeowners in pacific palisades where even though the average home value is $3.5 million, more than half of tax returns had adjusted gross income of under $200,000. meaning an unusually large amount of their net worth was wrapped up in their home. >> reporter: we have seen this. i mean, that is true across america, right? it is the biggest vehicle for building wealth in the united states, homeownership. what happens -- and by the way, if you have owned the home in the palisades for 30 years, you may have gotten close to paying off your mortgage or may have paid off your mortgage and may not have requirements from the

bank to have full coverage on your house. under insurance may be a problem with people being able to get or afford the full insurance but a lot of people just didn't have insurance at all. >> you heard about the fires this morning from andrew. it could take a decade to rebuild l.a. >> it is just a tragedy in every way. even for those lucky enough to have their homes, their lives have been completely upended. you just can't help but thinking of these people who have been so -- you know, our continued thoughts go out to them. >> contessa brewer in pasadena, thanks. "squawk on the street" is back in a moment.

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i think in time health payers will pay for obesity and recognize it is the only prevention of chronic health issues. in the meantime we will bite that off piece by piece. >> all right, it is time for the mad dash. of course, that was an interview from yesterday. we'll talk more eli lilly.

jim? >> i think what's interesting, even with a botched aunch, they were the second biggest earnings beat in history after nvidia. 926. i think that lilly will be trading off of approval standpoint. you will see hypertension and you will see an instance of cardia. you might see heavy drinking trial going on. you will see trial after trial, success after success. david, i know you can't let this past. people tell me it's got a terrible head and shoulders chart. you know it is a head and shoulders market. that is what willie is up against. the numbers will not be in focus. the focus will be approvals and payers. i think every major insurer will be paying for gop and that

is why you own the stock. >> right, and the government as well too. there were movies made towards the end of the year. the incoming administration could change that. >> true. the relationship between the upcoming administration and all of the executives is very much a give and take. there is this notion that rfk jr. being anti-fax, that is his focus. you need to look at the ones coming in and they are very reasonable people. reasonable people want to hear both sides. you know, it'll save the system a lot of money. they are very much trying to do what i regard as being -- you know, let's wait. maybe gop for everyone is a good thing. >> jim, you are on day three now. what are you hearing when it comes to rfk r. for example,

and what that ill mean for the broad number of pharmaceutical related industries that are attending this conference? >> i would not want to be in the processed food business. i think this is about diet and exercise. if that doesn't work, let's go vaccine and inoculation. two wean off of what the packaged food people have done to our country -- i didn't want my kids to be addicted to cheerios. or froot loops. what's going on, david, is the regime of what we can do for ourselves versus what happens if you can't kick obesity r diabetes. it's the second line defense. it's about health and wellness. that is not in favor. too many people fail.

>> interesting story in the journal. the trump team sidelines rfk jr.'s anti-vaccine aids. we will see how much of that policy evolves as we work our way. let's get to the opening bell and that the big board. [ bell ringing ] insurance marketplace celebrating its recent. we will watch the open back above the 5500. looks like we want to revisit that, dave. >> we have gotten real numbers about wages in december and i think people should know it's not just what's in line for headline numbers and cpi if you get wage inflation to cool. i don't want to go on the one cut

two cut. that's ridiculous but e fed was wrong. the fed should not have cut at all. if you can take the second- guessing off the table about the fed i think it helps all of us to build confidence. you can defend wrong. we saw that happen in 2021 and 2022 and it was brutal in the market. i think we can take that whole -- like, every single minute, is it one? is it two? that does not help us. >> jim, a couple of nice points about earning in general. one, they believe this postelection consumer balance is real as well as a corporate spending balance, whether that is restocking or trying to get in front of tariffs, they think those things make this season particularly powerful. the only risk is the dollar strength. larry talked about that this

morning as well. >> larry has the numbers. stocks are down 100 points from when they reported last. i am thinking this stock is falling out of favor but this turned out to be in the face of what turned out to be very, very good numbers. in the interview with andrew, that is another place to look as this stock is well down from where it was. david, you said something earlier about what the ceos will say. a lot of ceos are hard-core democrats. they don't like to talk about it but they are hard-core and i don't hear them talk about the fact that clients are feeling good and i know them and i know them from many different circles. boy, my clients are excited. my clients are happy. that is part of a new dialogue i have not heard in a long

time. >> interesting. it certainly may be reflected to some extent in the level of business activity. we will see. when people feel good, they do things. >> it has got to be more than service. >> i know. >> by the way, where is this coming from? >> speaking of, i know you are a big fan of beacon roofing. >> i have always been a fan. >> i know that you follow that company very closely. >> beacon goes where the supply goes, david. i have always said that. >> particularly in areas i mentioned that this morning, jim, to your point they got a bear hug is how we typically refer to it. $124 -- excuse me, $124.25. it

is qxo. yes, the building supplies area industry and they have been talking to this company since july. they've got no positive feedback, let's say. they come home this morning with a letter, with an offer they have already made. it is a pretty significant premium to where the stock was. there had been some discussion in the press a bit ago and the stock did adjust. they are talking about 11 times and trading around 8 times at least. they have said to me this is at or near the highest they will go, pointing out the changing yields and the number of stocks in the industry have sold off.

they have maintained the price they initially came but again, they were not giving any satisfaction in terms of a true audience for this, jim. they don't believe there are any other offers there. the company has said they will have an investors day in the coming days and months as well but there you have it, brad jacobs. >> beacon roofing is a really, really good company that has been through thick and thin, the housing crisis, housing shortage, toofew homes. brad jacobs is a very, very smart guy. he has broken it off and created a lot of value but what does this say about home depot, about floor and decor? they are selling very low. this is an example. beacon roofing is something you

do not buy going into a depression or a slowdown. you buy and it becomes an accelerator. >> it seems the dominating window closes on valentine's day. >> roofing is so expensive. if you've ever seen a roof built -- oh, my god. >> you live in an apartment building. >> you read about it, right? >> i have heard about it. i have. i have heard about it here >> i have put a roof on. obviously was not up there myself, but i paid for it. >> the only thing you know about the latter is not to walk underneath it. let's get over to megan costello. >> reporter: the biden administration moving this morning to further exports on advanced chips used in a.i. systems. there are three components.

one, they're imposing a new licensing requirement for companies exporting certain types of these advanced chips. they are asking companies for due diligence to avoid sending those chips to china. they are adding additional companies in china and singapore to their entities list, restricting exports to those countries entirely. this is expected to impact chipmakers like intel and samsung. the goal is to slow or stop entirely china's ability to buy these chips to advance their own a.i. systems in the military. this builds on the roles that came out on monday, a.i. diffusion rules, amid fears china was using those. they are restricting exports on ships by categorizing countries we could freely trade with and others we have much more limited exports here. of course, guys, this is coming just before the biden

administration leaves office. trump could undo this but in the interim these are expected to take effect. >> we appreciate it. jim? >> i think when you unleash something without talking to people who have been very respectful of the government and you come up with another story today, what are they going to do tomorrow? very ill-advised strategy. probably our most pristine industry. yes, they have a problem with china. there are 18 friendly countries not including iceland, not including mexico. this is what i call maybe the most abusive of an otherwise really stellar period for the commerce department. it is a shame this is a legacy because holy cow. the ceo of nvidia, the ceo of amd, the researchers, they have played ball and have done everything right and it has not been enough.

over and over with new things. let's treat these businesspeople with a degree of respect. david, this is what i am talking about. over the weekend, there are 29 countries and only 18 around the whole world that are friendly. what is going on with that department? that department understood business. that was one of the few departments in this whole administration that understood the business and was the greatest source of innovation and they are being treated as if they are shabby fools. >> i think it is about the fact a.i. is an incredibly powerful tool and in the hands of our enemies could be -- >> this is a blunt instrument. why not sit down and talk with jensen or the lam research people? what did they do to deserve this? peter navarro from the next administration, even he as hawkish as he is on china

without more respect for the business people in this country -- by the way, the people who have played by the rules are being treated as if they are trying to fund chips to the prc. it is the opposite. they have done everything the government wants and it's time for the government to come out and explain why jensen huang is doing what is wrong. he is doing the most to advance us as a country when it comes to technology. all right, musk? those two -- i am upset about this. >> [ laughter ] >> january 7th came and they are still issuing things? >> he did, jim, knocked down the quantum name a few days ago with his comments. and now you've got this microsoft blog and nvidia today announcing a quantum date in march. >> that's good. great. quantum -- i don't know.

i am busy trying to figure out what jensen huang will do with quantum. i love the people at microsoft but the idea this is quantum's hour? it is easy to say it so i will say it. the problem isn't commercial. there isn't anyone who thinks the company is currently trading our commercial companies. >> speaking of -- speaking of china -- yes, the quantum names are up again. speaking of china, guys, we may hear very soon from the supreme court on the tiktok ban. we spent some time discussing that yesterday in terms of what will happen and what the chinese government would allow in terms of a potential sale. nothing has changed. there is an expectation of bytedance at least and it's not clear how much discussion there is between the company and the

prc but nonetheless they would not allow a sale so we are dealing with the prospect of tick tock -- tiktok effectively being shut down. it will work for a bit but will be compromised over time if apple or google can no longer provide those updates to the app. meta, jim, is up today. it has not been up. one would have thought if people really believed tiktok would be banned, they would be a key beneficiary. the stock was down. i don't know if that -- i don't know if -- a lot of market participants have expected tiktok to be banned. it will live on as a true competitor to meta here in the u.s. >> or the integration of other chinese apps. >> yeah, i am seeing that on

twitter. when you speak to the cybersecurity executive what they say over and over again, we cannot let the chinese have the data and that is what they want, the data. there is no way to build a firewall for what they can do to the younger people's minds. i don't know. it's the data that will be the important issue. >> the data right now, they put a lot into your servers in texas. legislation was passed and signed by president biden. bytedance, the owner of tiktok, is a private company. who knows if they will ever go public. trading at one fifth of the value of meta for two-thirds of the prophets. that shows you the discount, jim, if you are a chinese company given the government could shut you down at any moment.

>> jim, really quick on meta, i wanted to get your take on cutting 25% of employees. microsoft pausing corporate hiring. that was just yesterday. do you think that was just a one off? >> i think the year of living efficiently at meta wasn't believed initially the first time and it was felt maybe there was something wrong. oh, it is happening again. this is the way zuckerberg wants his company. i think he prunes his people. okay, we have got to get rid of the dead would. it is not a way to put things but i think he is a believer the bottom 10% have to go and that is the way wall street used to be before we all became really soft and nice. >> oh, please. soft and nice? >> what? what did i say? >> i love you just the way you

are. >> do you care about plumbing? >> i do. i love plumbing. actually, let's get brad jacobs the role of plumbing supplier too. we'll get to leslie and a second on the financials. jpmorgan not performing well but all of the others are. i wanted to mention apollo signing for five more years. remember, he was a top contender for the treasury job but it'll be interesting to see what happens there. they have made it clear in terms of promoting a couple of other fellows and you've got blackrock , jim, considered a top contender at some point when the 72-year-old stepped down from leading blackrock. always interesting. >> i know larry in the

interview talked about how much he respected him for leaving and leaving at his point in life. i thought blackrock would be higher but it's not moving enough. jpmorgan opens up big so let's see if that will be the pattern. >> let's get to leslie on some of these earnings. lots of news as you were talking about. that jpmorgan call ending a short bit ago. analyst asking jpmorgan executives about areas of vulnerability, rate cuts, and the tariffs. here is the ceo's response on what the macros mean. >> the biggest driver of credit has been and always will be unemployment on the consumer side and it bleeds into the

corporate side, mortgages, credit cards. really, it is important for unemployment. that will determine that over time and the second thing, vulnerabilities. the worst case would be stagnay cross the board. >> the first question on the jpmorgan call focused on excess capital which they have a lot. the ceo said it makes sense to store extra capital in the current environment however after studying the issue they have determined they have enough and leave there is a good moment to deploy it at better levels. when asked about dividends, dimon said they will not do one, adding i never thought having cash in your pocket is a bad thing. another key topic of conversation, given the significant improvement in business sentiment following the election you might have expected to see big loan growth

but he adds they are not really seeing that. he thinks that is explained by healthy balance sheets that have already tapped the largely open capital markets as well as maybe some residual caution. guys? >> looking at the stocks, you've got a lot more calls to cover. >> yes. >> goldman, very strong quarter, wasn't it? >> very strong quarter on an annual basis, the second best eps performance after the blockbuster 2021 and leveraged the capital markets. you saw so much activity in 2021, you expected that to be number one but this came in at number two. you are seeing dead capital markets remain somewhat stronger as we talked about with lending and so forth and the wide open capital markets there but all wheels are in motion at that firm, the best

performer among the big six. >> the numbers were incredible for goldman. and we will talk about loan growth since the election, so wells is the ne to give enough loan growth. they are an international bank. they are going to have great loan growth. >> that is absolutely true and we saw with wells fargo, they upped their guidance this year after they have seen declines over the course of 2024 so clearly an inflection point for them in terms of their lending profitability. >> leslie, thank you for that. leslie picker. the dow is up 700. the nasdaq up 2%. a lot of sectors are up 2% as well like tech, financial, utilities. jim, we are still shy of the 50 day. >> look, i do think we need to

get away from the idea we are narrow again. we did lose the semi-s. thanks her big but nowhere as big as tech. i know it is a short -- it is very early in the year but tech has been a dog and david, everything has been coming to tech in the final days. again, i am concerned that is the legacy. would you want that to be the legacy? i certainly wouldn't want it to be the legacy. >> you have made it clear you think it will be. >> there are sizable number of ceos against trump and thought they had a good rapport but when it comes to business, i mean, these are companies that are not -- >> all that said, we have seen a lot of unknowns yet to confront with tariffs at the top of the list. we will continue to talk about this until there is more

clarity. deportations and how those will ultimately be impacting the potential worker shortage here and trades for example. you know, jim, it is not as if there is uncertainty out there so to speak. >> walmart is barely up. tjx is barely up here we talk about how big tjx really is. costco is barely yep. retail should be stronger. carl, retail should be leading the market and it's not. if you ask me what's not working, i would think retail would be a leader here. that's working, but that's mortgage rates. mortgage rates will go up. >> 30 year fixed, jim, 7.09%, the highest since may of 2024. mortgage up 33. i'm assuming that's seasonal,

right? >> they make the numbers so unreliable we focus on earnings because no one will trust numbers with a fifth of the country or the southern fifth of the country's off-line right now. >> restaurants, furnishing, certainly the homebuilders. that said, the dow is up 700 points. as we go to break, we have a fairly healthy diet for the fed speak today. stay with us. >> the bond report is brought to you by pimco, global leader in active fixed income.

let's get to the west coast edition of trading. >> healthcare has been lagging, carl, but a fantastic company blew away the numbers this morning. stocks have been the best performer in the s&p 500.

good to see. this is a company we have leadership, the notion of being able to do basically robotic surgery. congratulations to them. >> our thanks to you for helping our viewers understand all week long, jim. >> we've got arm holdings which is crucial to increasing a.i. cisco, chuck robbins, pg&e. let's clear up what's going on in california. i think patty poppy is someone who can explain the situation. they are trying to bring things around here in san francisco and san francisco has become a vibrant place again. >> jim, save travels home. i am looking forward to getting you back.

>> thanks. >> he works hard eacwe, h ekjim cramer. russell is up 2%. stay with us. at's why to be boring with your money.ts the pragmatic, calculated kind of boring. ♪ in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there.

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good wednesday morning. welcome to "squawk on the street." i am sara eisen and i've got david faber here. take a look at the markets right now. we are in celebratory mode after the cpi report. s&p 500 up 1.7%, nasdaq up 2% right now. financials are leading the charge, up 2.3%. real estate also with a nice game of about 2%. why? because rates are moving south. interest rates in the market, that is. yields are coming down off

those levels and bonds are rallying off the cues the market is taking from this cpi report. 10 year yield, 4.65%. >> keeping a close eye on the supreme court as the justices debate whether to step in and block the potential tiktok ban from going into effect on sunday. the scotus decision could happen this our and we will bring that to you immediately if we hear more. big banks are kicking off another busy arnings season. jpmorgan, goldman sachs, wells fargo all on the move. they are higher right now. more volatility in the quantum stocks as market -- microsoft calls 2025 the year to become quantum ready, and watching blackrock after a record year $11.6 trillion. just gigantic. a big mix of public and private. of course the big story

today, cpi. inflation. the markets are celebrating this number. why? core cpi which takes on food and energy was better than economists expected. 0.2% increase on the month. 0.3% last month. 0.3% is what we expected, so that's good news. also after four consecutive monthly gains of 0.3%, it is good to see a 0.2% number. and the fed looks at service inflation. rent has been stubbornly high. some relief there, 0.2% versus 0.3% higher, the first drop in core cpi since july. that is why the market is breathing a sigh of relief. does it really change the trajectory for the fed? hard to know. we expect a pause in january and it looks like maybe june instead of october.

the markets are grappling with this idea we get one cut or two cuts but for the fed worried about stubbornness and lack of progress and inflation, this is good news. the overall number was higher. we got an increase 0.4% on the month but that was largely due to energy. we the energy crisis was higher and that made up a big percentage of the move. 2.6% on the month. gasoline, fuel, oil, propane had the biggest gains. look, we are still seeing inflation on a monthly basis with used cars and trucks. food prices are still rising. these are the sort of lowest gainers in terms of prices, apparel and medical care service. still higher. so, you know, we are still dealing with inflationary pressures in this economy but we want to see the direction of travel moving to lower numbers and the market had that cpi and that is why

you are seeing relief rally. on the inflation front. >> we are certainly seeing a response in the markets. also strong bank earnings that we will get to momentarily as well. >> it is hard to know what inflation is going to do. i mean, we know president trump is bringing -- banging the drum. we heard lululemon say if we get widespread tariffs in places like vietnam where they make their apparel -- >> some of these companies will say china is not the issue. >> vietnam, bangladesh. i mean, textile companies do not produce in america, nor are they planning to. they have moved away from china to a great extent but we are talking about bigger tariffs that are more universal and widespread. i want to zero in on food

because we know we are paying higher prices for groceries. they surged coming out of covid. the numbers on food, 0.3% was the monthly increase and that is definitely better than where we were, but we are still seeing these prices rise. this is food at home. this is grocery price inflation. obviously went up the peak. still kind of strong. not as strong as food away from home or eating out at restaurants, which continues to be a big gap over the last two years or so but there re categories seeing big monthly increases. rice, pasta, cornmeal, crackers, i'm a big carb person. bacon, 2%. eggs, 3.2% increase on the month. obviously we're dealing with avian flu so there is a production issue but it also shows what kind of food

americans are buying. what's hot right now? alcoholic beverages are seeing a decline and i think that speaks to a trend we have been talking about as well. >> food away from home, up 3.6. the other big one, airfares up 7%. for this one, up 3.9%, the biggest jump since may of 2024. traveling -- i mean, the way of travel -- >> everyone who travels knows planes charge high prices. that's what's driving the core cpi increase and why we are seeing higher numbers particularly on inflation. you know, the question is what's going to happen with tariffs? what will happen with the tighter immigration policy and if we see decreased labor, supply, and whether that will inflationary. those are the big questions. we didn't talk about this yesterday because i was at the nrf conference, but small business optimism. i think we need to pause and

show the explosion in confidence and optimism. we saw this last month and we are now at a six-year high for small businesses. sure, it's political, but look, it bodes well for hiring and spending on capital expenditures by these businesses. we always say small businesses are the lifeblood of the economy. this is very good. the highest since october of 2022. small business owners feel more certain and hopeful about the economic agenda of the new administration. >> couple that with the board and how supply chains have returned to the top of ceos risk profiles. one of their number one concerns. we will get more tonight from the chair of the business roundtable. financials in the meantime kick off another earnings season. jpmorgan, citi, wells fargo

all out with earnings. here to break it down, gerard cassidy. it is like christmas in january. over all reflections so far? >> you said it very well. it feels like christmas in january and you are right, the numbers are quite good. more importantly, carl, it is the outlook that they gave. jpmorgan lifted their income guidance for the year. you also saw that with wells fargo. citigroup's expense number came in a little lower than expected. a little better than expected, so not only did we see good numbers in the fourth quarter, the banking numbers of course were strong in trading, but the guidance going forward and i think sara touched on it with small business optimism index, we are setting up really well

for the banks in 2025. >> are you getting a sense of some of these names getting expensive? >> carl, that is fair. particularly with jpmorgan chase. when you look at trading for evaluation and the post- financial crisis because the world has changed since the crisis at the banks, when you look at the top 20 banks trading on that two point tangible, 1.7 times tangible, so there is room on the upside but notably jpmorgan , they are rich on tangible. >> is that the reason jpm is not performing as well as the others who reported their earnings this morning? >> interesting observation, david. i think it has to do with when

you look at the guide better than expected it was because the financing of their capital markets, their trading businesses being excluded in that number. that number was stronger or expected to be stronger in 2025. you pull that out and the lending business was slightly down from expectations -- or from a year ago, from 2024. it is partially to do with that but you are right, it's a well priced stock and people make take the opportunity to take some profits. >> what about citigroup? it's on the other side, best performer of the day, 6.6% higher. they needed this after the last quarter and concerns over the regulatory hit. what kinds of are receiving

from our turnaround plan? >> this week they announced $20 billion program and everyone has been clamoring for this because as you know their stock trades at a big discount. we have the polar opposite with jpmorgan, when a company likes this agrees to abide back, both value per share but the quarter itself was a big quarter, better than expected and all of these companies, the credit quality is very healthy and none of them show signs of deterioration. in fact, wells fargo showed a nice improvement in the commercial real estate office problem. there was an improvement there which bodes well for all of the banks. >> i am glad you mentioned that as well as we get to the smaller banks. gerard, what about wells fargo? what are your expectations?

>> i think you are right, david. what we are anticipating is this company as well capitalized. once they have listed the asset cap in particular, you may know the regulatory capital focus with the banks and with the recent resignation of the vice chair with michael barr, this is a real positive for the banks. then we had the vice chair last thursday in a speech say the regulatory capital should be neutral. it shouldn't increase. this is a big contrast to the initial proposal which called for a 16% increase in capital levels for the top 20 banks. i would suggest wells and others once we get the endgame programs will be very strong. in fact, jpmorgan said on the

call their capital now is very high and they need to institute plans to make sure it doesn't continue to grow much higher from current levels. >> gerard, appreciate the help. we will get more tomorrow. gerard cassidy, appreciate it. >> thank you. california facing extremely critical fire conditions caused by a new period of santa anna winds across los angeles and ventura counties. wildfires have destroyed or damaged 12,000 structures. let's get to ellison barber with the latest from pasadena this morning. >> reporter: david, when you look at these containment levels, progress has been made. the eaton fire where we are is around 35% contained. that said, the fire has burned over 14,000 acres.

when it comes to the palisades fire, that is 19% contained but it has burned over 23,000 acres. the hearst fire is now 97% contained. you see the extreme winds and fire that brought all of this destruction and damage to these communities. we were lucky overnight. the winds were not as bad as forecasted but we are not out of the woods yet. high wind warnings and fire risks still in effect through today. the l.a. fire said they had prepetition fire engines and patrols throughout the l.a. region in anticipation of those winds and in anticipation of new fires erupting. a lot of people breathing a sigh of relief this morning that there were not a lot of new fires that started overnight. there were a couple but they were largely contained her seemingly put out, nothing like we saw with the palisades or eaton fires.

this community still processing what happening here. many people still desperate to get back to their homes to assess the damage and to see if their homes are still standing. people are able to go and look in these communities at the preliminary damage assessments to see on the maps whether or not their homes are still standing but for a lot of people, they said that's not enough and they want to go back to their home to see it but firefighters have said, look, it is simply unsafe. we have downed power lines and trees that have collapsed that could fall on people. we are near the eaton fire. a lot of these homes and basements -- buildings have basements and when they collapsed, the pancakes on top of each other. hotspots happen and flames can reignite the what fire officials and police have been telling people, we have been doing escorts but we have had to halt those entirely because

it is simply too unsafe to allow people back into these communities. david? >> ellison, thank you. as we head to break, let's get you a roadmap of the next hour. rent prices around the los angeles area are soaring given how many people are homeless. we will have more on that coming up in plus, wells fargo and goldman sachs holding a conference call this hour. stocks dropped 10% since the killing of a top executive. why there might be insurers after a tough year, when "squawk on the street" continues. >> sponsored by franklin templeton, your trusted partner for what's ahead.

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welcome back to "squawk on the street." stocks are rallying across the board. meanwhile european data showing inflation quarreling in the uk. our next guest manages various funds including the oakmark global fund. the portfolio manager joins us now. you know, it has been rough for international equities. the u.s. continues to be he center of the action. is there anything that you are seeing, david, that looks like

that will change? >> if you look at the last 10 years at the index, it's barely up 4, 5%. s&p 500 is up 13 or 14% but we are getting so lopsided. evaluation differential is getting so large that i think we are looking for pockets of opportunity, where to invest. you certainly have to consider overseas stocks because the fundamentals remain okay. they are not robust or booming but we are growing. single digits, yet we are pricing the earnings ratios of the portfolios for instance just 10 times and this is 10 times on top of the projected 10% earnings growth so these types of value characteristics make it almost irresistible to start dipping your toes or growing your international exposure. >> accept the fundamentals -- not to pay up but a lot of

people would argue with the fundamental plan, the lack of growth across the economies. the fact they have firmer inflation numbers. the fact they don't ave magnificent seven, a.i. companies, anything like that. that is what they point two as to why they are cheap. maybe they should stay that way. >> this is not an adequate criticism because companies based in europe, their growth rates are not dependent on where their home is. they are dependent on where they do business. think of some of the global industries based in europe. there is no u.s. competition for them. goods in particular. you could look at other industries such as pharmaceutical. strong pharma sector in europe. so what does the separate? company growth and company fundamentals from what's happening in the various macro economies where they are

located. this misnomer, this imperfection allows a bona fide long-term investor an opportunity to make money. and separately, not all of europe is germany. go ahead. >> my question was about germany. any number of industrial companies in that country, are there opportunities there? i know they are trading at incredibly low multiples. is it actually concerning? >> first of all, the german economy is concerning. thankfully there will be an election in the next month. hopefully we have better, free market policies that get instituted because germany is once again the sick man of europe. there are other places in europe doing very well. spain, italy, portugal, et cetera. but germany, the biggest economy is on its back. to the extent at which german

companies have to pay high energy prices, we do have to factor this in to how we value the business as. but luckily, again, you think of a company that does business all over the world's. you know, process software. industrial process software, factory automation. it does business all over the world and you look at these companies, even the car companies incidentally like mercedes and bmw. only a third of their business comes from europe in general where as the other third comes from asia and the u.s. so this is an opportunity. investors get scared off by german policy in particular. by the way, the uk sadly is not learning from germany's mistakes. this is bad for the uk economy. what it doesn't necessarily

mean the uk companies will all suffer because they do business everywhere. >> the german economy now shrinking two years in a row and the powerhouse as you point out, david, what is more important to you? policies in europe, or something externally like china's stimulus finally kicking in? >> both have a strong impact. i would almost say it is 50-50. for the long-term, i would like to see better policies. we are starting to see this in some parts of europe but, you know, france, germany, the uk need to really focus on this. in the short-term, if china increases stimulus, you saw what happened when they increased monetary stimulus in december. the european markets shot up. it didn't last long as people were hoping for fiscal stimulus. china certainly has to do something and besides the fiscal

stimulus, they have made themselves an attractive brand again. foreign investors don't want to go there. foreign investment has shrunk. you know, china could change some of these policies. this too could be beneficial to europe. this will cause a short-term positive, you know, event for european economies and stocks but the longer-term structural reform and regulatory reform and maybe, just maybe like we saw in the '80s with european economies and the politicians saw what's happening in america when reagan came in and regulated and cut taxes, maybe they will see what's happening in america with the incoming trump administration and try to mimic some of the positive aspects. not just deregulation but smart regulation whether it's energy or otherwise. >> a lot of wishful thinking there. david, thank you for joining us

to talk about the case. we appreciate it. >> thank you. >> david herro. as we head to break, taking a look at the gainer s. we will talk about utilities after the break as the s&p, nasdaq, and dow enjoyed their best day so far since the election. stay with us. you know i hate giving out advice. talk to a financial professional today. feel comfortable about tomorrow. massmutual. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job on indeed, it's easier for talented candidates to find it. which makes it easier for you to hire them. visit indeed.com/hire

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welcome back. i am silvana henao with your cnbc news update. several of trump's cabinet picks will face questions today including florida attorney general pam bondi, trump's pick to lead the justice department, and senator marco rubio for secretary of state. the nominees are facing the committees overseeing their agencies. a full senate vote won't happen until trump is in office. the supreme court will hear arguments against the texas law that requires age verification to access pornographic websites. texas argues the laws necessary

to protect children while critics say it is a violation of free speech. texas is one of a dozen states with age verification laws in place. the fda is proposing a plan to cap the levels of nicotine in tobacco products. it would make smoking less addictive. the fda's proposal comes in the last days of president biden's term and it's unclear if the incoming trump administration would allow it to move forward. sara? >> makes you wonder what took so long. thank you, silvana henao. we've got every sector higher and up 2% right now. consumer discretionary, financials, utilities, and information technology. we will break down the numbers and what it means or rates after a quick break. stay right here for "squawk on the street."

appreciate it so much. thank you. doors are new beginnings. -surprise! -surprise! your dedicated fidelity advisor can help you open those doors. for you, mama. through personalized money management that can evolve with new chapters. and they can proactively view your entire portfolio. with an eye on taxes and the impact of risk. so you can enjoy moments together. because doors were meant to be opened. markets are rallying this hour after this morning's cpi

number came in better than feared. impressive bouts here. >> 90% upside there. 10-1 declining stocks. remember we were all freaked out the lower inflation would come and the markets would bear up on this? we have been sideways for a couple of months and, boom, we get two good inflation reports and things turn around. the market has gone ack because it believes more rate cuts are coming. let's buy growth stocks. let's buy tech. that's kind of obvious but consumer discretion, this is largely tech not discretionary but semiconductor's are leading. speculative tech is leading. modestly up, healthcare.

the defensive stuff is lagging so the market has gone back to its growth bias here. earnings season is upon us. you've heard a lot about banks today. the tailwinds are good. we are at another year of double-digit earnings gained for the s&p 500. profit margins are near record highs, a key reason the market held up. broader earnings contributions from stuff outside of the magnificent seven here. the headwinds were dealing with, the valuation levels. 21, 22 times earnings. higher for longer interest rate environment. and of course, we have talked about the fiscal and monetary uncertainty. look at the earnings growth expectations for some of the bigger sectors for 2025. healthcare is leading. healthcare over technology. these are earnings growth, and technology is there.

industrials, almost 20%. materials, 17%. communication services, 14%. in some sectors like materials that are completely unloved and industrials, they didn't do particularly great last year. this is part of the broadening out strategy. here is a key understanding of this. we are still seeing notable earnings growth in companies in the magnificent seven here, but it is decelerating and that is a key story. in 2025, earnings growth of 19%. 2024, 33% earnings growth. that is still good but it is decelerating. let's look at the other stocks in the s&p 500. it's the opposite. we are seeing a ramp-up. in 2025, we are expecting growth of 13%. 2024, we had 5%. it is not as aggressive as we are seeing in tech and that

could be an issue for people going forward here. what's happening is some people are trying to buy into the thesis. the s&p 500 is outperforming this month and in the last six months. about 2% growth. maybe 1% in the s&p 500. as you can see, there is the year to date versus the s&p 500 so people are trying to buy into this thesis. i think the problem here is on a fundamental basis, this broadening out idea makes complete sense. you want to buy into something? earnings are growing but decelerating in the magnificent seven. it's growing in the rest of the markets on a fundamental basis, it makes sense but we know from behavioral finance that people have recency bias. it'll be difficult to get them off tech. people stayed with that fund for

a very long time, long after prices started dropping and much later they started lightening up and moving out of those funds because of a recency bias. fear of loss is greater than expectations. this makes sense to me. i'm a big favor of this theory, i just wonder on days like today you see people following this idea and going straight back into the growth story. >> tesla is leading the market, up 5%. thank you, bob. stocks are rallying on the back of this latest inflation print. the bank numbers are coming in strong but when it comes to inflation, not entirely clear cut when it comes to investors. steve liesman is here with more. steve, does this change anything? >> immediately. sara, it is not going to be clearcut for the fed either .

the numbers as you reported are better than expected but it's not a green light for the fed to cut rates anytime soon. let's go through the numbers. 0.4%, worse than the prior month on the headline number but what everyone is watching, that came in better than the prior month and better than expectations. year-over-year, 2.9%. that's not good for the fed. the court, 3.2%. not good enough for the fed. housing seems to be helping. at least not getting worse. it's up 0.3%. airfares, that number is expected to be temporary. core services, 0.2%. goods, well-behaved despite the fact new cars were up. clothing was well behaved as well. taking a look at the early forecasters, they have their numbers and they come up with the fed's preferred indicator that comes at the end of the

month and it is expected to be well-behaved around 0.13 to 0.18 , roughly unchanged from november but if you look at the three to six month gauges if that is the way to come. we see the fed moving to the sidelines for the first half of the year to assess the evolving economic, inflation, and policy landscape. that is where the market is when you look at the probabilities they are higher but not 50% for may. 66 or two-thirds for jim. hopefully this is the answer to sara's question on confidence. most believe the fed will be on hold. why? fiscal policy and being unsure about inflation. sara, to me, a big change that has been evident over the last

several months in the jobs report is the issue with the fed being on hold for six months here. >> yeah, it has been pretty strong on the jobs front. thank you, steve. after the break, goldman sachs wraps up their earnings call and wells fargo starts theirs. back in a moment.

goldman sachs' conference call just wrapping up. we've got wells fargo kicking off at the top of the hour. leslie picker has a lot of stuff to listen to this morning. give us the headlines, leslie. the wells fargo call is ongoing. the ceo charlie scharf kicking off the call . against that backdrop, scharf was optimistic about the broader environment of wells fargo's place in it.

>> the economy has performed very well and remains strong. unemployment is well in 2025. we succeed when the country succeeds so the incoming administration's support of u.s. businesses and the porters optimism as we look forward. >> and that the ceo said there has been a meaningful shift in confidence particularly following the result of the u.s. election. he added there is a significant backlog from sponsors and increased appetite for dealmaking supported by an improving regulatory backdrop. >> it is certainly setting up to be much more constructive and robust and the data says -- you know, what allows us to articulate that, we can track the backlog, but we can track increased activities and dialogue inside the firm and i think there has been a

meaningful pick up and dialogue and inquiry. there has been a meaningful pick up in dialogue and we continue to see strong, positive backlog trends. >> solomon was also asked about his own appetite particularly to accelerate growth and alternatives or private wealth. solomon said execution is the primary focus, noting the bar for doing a strategic deal is quite high, guys. >> a lot of talk on the administration. talking about how good it will be for the business. leslie, thank you. in the next hour, the wells fargo cfo will join us to talk about the numbers and what he sees in the economy at 11:00 a.m. for money movers. in los angeles, jacking up rent and price gouging laws. we will talk to one real estate agent who is pushing back. don't go away. you can contribute $7000,

$8000 if you're 50 or older into a traditional or roth ira by april 15th and still have a count for the 2024 texier. traditional ira contributions are tax-deductible. for cnbc, i am sharon epperson.

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welcome back. the streets are getting pretty bullish in the wake of the california wildfires. diana olick is here to explain. >> we have heard about price gouging by individual landlords. that is not the message from large apartment reads. camden announced it is temporarily waiving application fees, offering flexible lease terms and rates. still, some of the stocks are seeing upgrades. there is an overweight on essex and equity residential. >> there will be probably modest rent increases through

normal course but i would expect and, you know, when we come to the earnings season others will discuss rent and application fees the way that camden has but certainly upticks in occupancy will follow the bottom line and drive earnings. >> office could see a boost. that is for the rebuilding effort. attorneys, insurers, architects, you name it, a lot of people will be coming in. >> as a result, do believe they will need office space and douglas emmett with its portfolio fits well for those tenants given that amit focuses on rebuilt office suites. >> and east group properties could also see increased demand as rebuild material start to flood the area, everything from window, lumber, doors, concrete. and massive rebuilding effort that will take a lot of

supplies. >> i have been trying to look into the data to see if what's happening here will have a broader impact on gdp and it does not look like it now because a lot of destruction work residential houses, not necessarily business activity being lost but i wonder if on the flipside the construction, the scale of it is so large it will actually add to the economy given what we are seeing. >> it's possible. you will see more residential reconstruction. that will take a while because this is not an area the big builders are in. this will be one by one homes with individual contractors and builders but you have commercial real estate destroyed that will have to be rebuilt so it will be a massive effort that will affect supply chains as well as all of these new people coming into the market to be part of it. >> meanwhile mortgage rates are not helping overall, are they, diana? >> we are not in a good place on mortgage rates.

for the broader market that will be the issue going into 2025 as to what that will look like. we have more supply in the market right now but we are not seeing mortgage purchase applications rise at all. in fact, they are down year- over-year because of this affordability issue that is just not getting better with those higher rates. >> although today, diana, what explains some of these numbers? i am assuming it is some kind of seasonality work? >> month-to-month, forget it. it has to do with the holidays and being closed for two weeks, so i ignore those. i look at year-over-year and we did see a slight increase in refinancing but a drop in purchase applications because rates are so high and home prices are still actually more than they were a year ago. >> diana, thank you. diana olick. let's bring in the star of netflix and the owner of the oppenheimer group, a luxury

real estate business in los angeles. jason, good to have you. you have been outspoken in terms of landlords gouging when it comes to renting to people who have been displaced. is that still going on? >> it is, but a week ago we have gotten the word out in the press, nathan hochman, the district attorney, the attorney general, they have been making it very clear. i was looking to see if anything changed and in fact there are still people doing it which is mind-boggling to me. it is happening much less than it was because i think initially some landlords did not know what the laws were. >> yeah. more specifically to the years ahead, i am curious to get your perspective your and what you expect the housing market in los angeles to look like given the devastation that has taken place in a number of these key

neighborhoods? >> i would love to say that everyone will be able to rebuild but the practical answer is many people i have spoken to, their -- they are not dentists or lawyers, not contractors. they may have to sell to developers at some point. these areas will get rebuilt and probably stronger and better than ever before, but if i had to guess, i would say five to seven years away from that. >> do you think people will leave? leave l.a.? >> i know they will because i'm getting calls about people who want to go to newport beach or leave the state. i don't think we will see any mass migration. many people grew up here. their families are here. their kids go to school here. you want to remain here. 95% of the calls i am receiving, they want to find a house in brentwood or santa

monica. there are hundreds if not thousands of people who want to do that and only a few dozen homes available in those areas. >> jason, we have been talking about what happens when areas get uninsurable and worse than that, when the uninsurable becomes the do you think in 30 years at the end of a fixed mortgage, this area will not be viable? >> i am not seeing that. first, i don't see these fires as being much of a risk in saying 8 to 10 years. we will have amazing fire suppression technology. we will have a.i. drones that will be able to see heat from a mile away. i don't think we will have fires that will be able to spread like this once technology catches up but until then and right now i've got several deals on hold. insurers are not writing any

more insurance policies in california. it's a complete and utter freeze on writing policies, so we are not able to transact any business right now unless they can get the california fair plan which caps out at $3 million. and you are seeing lenders right now pause lending until they can send people to their homes to make sure they are still standing. >> jason, appreciate your time. thank you. >> thank you. >> we've got a lot more ive coverage for you straight ahead. g cost pressures, or leveraging emerging tech to create consumer value, ey teams bring real-time insight and deep sector expertise to the moments that matter. the ability to truly provide personalized experiences requires an understanding of all channels of consumer behavior. ey. shape the future with confidence.

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only servicenow connects every corner of your business, putting ai to work for people. pfft ... every corner? every corner, nick. 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.

welcome to money movers. i'm sara eisen with carl quintanilla. today, the major banks kick off earnings season. the ceo of wells fargo joining us. stock getting a nice bump. now up more than 60% in the past year. >> the entire market is rallying on the back of this cpi print today. yields pulling back after the lighter than expected core. what that means for your money this hour. >> plus, the latest on the l