treasury yields have come down through the course of the week after we got those cooler than expected inflation numbers. 458 for the ten-year. 4.23 for the two-year. that about does it for us this week. we do have a lot going on. we're headed off see you from a locations. >> all parts. you're in ashington, i'm in davos. >> we will be washington. >> and then you will be back in new york. >> we will all be on the air. >> i won't be on the air. >> tuesday you will in d.c. good friday morning and welcome to "squawk on the street," i'm sara eisen here with jim cramer at post 9 of the new york stock exchange. carl and david have the morning off. futures this morning heading for an up week on wall street. s&p is up 2% coming into the day, looks like we're going to build on gains up 44 points here ahead of the open. dow futures up 237. our roadmap begins with the best week for stocks since november.

wall street pointing to a higher open on this last trading day of the biden administration. plus, weight loss drugs in focus, medicare adding ozempic and wegovy to its second round of price negotiations potentially expanding prices for millions of americas. tiktok on deck. the app set to go dark on sunday but the supreme court could rule on the ban as soon as this morning. it's a heavy news day, we will begin with the markets as we head into the final trading session under joe biden's presidency. and if you look at the winners, jim, during the biden administration, they have nothing to do with him. >> no, not whatsoever. as we've been saying on the show, it's not in spite of, it's because of. i mean, did he really have anything to do with nvidia? only tried to respect how many countries. 18 friends, did you see the 18 friend list. >> you are on this again. this is the new chip order from commerce. >> i think that they are -- i think that that's -- changes day one. >> nvidia called it misguided, nvidia is the best performing stock of the biden

administration. >> super micro, which basically -- i would call them a jobber for nvidia. we know that they lost their order, they have a new order, good luck. this from what we -- how much do we love -- >> utilities. >> yeah, and nuclear. fantastic. target has cut its dividend, now on a comeback. we want pipelines because we have to get natural gas out of the permian. arista is the one, the plumbing for data centers. it is a very compelling figure in terms of even more than broadcom in the data center. extraordinary. >> all really related to ai mostly. >> with the exception of nuclear and nat gas, yes. >> nuclear is also to power, right? >> yes, it is to power. it's to power. >> data centers. >> absolutely. >> worst performing stocks in the biden administration, we've got a few media names on there, paramount and warner brothers. walgreens, no surprise, and moderna --

>> moderna has been one of the biggest disappointments of the year. i think he would be very good on science, a ceo in there that would be terrific. tinder down 9%. >> what happened to tinder? >> don't look at me. >> everyone was on it. >> what do i know? >> your kids maybe would know better. >> we have leave them out of it, but i do think that down 9% average monthly users is quite a blow. >> i mean, look, as we look ahead to trump 2.0 one thing that strikes me and drew mattis of met life had a good note on this this morning, he's coming into an environment, an economy, a backdrop for the markets that is very different than when he came in in in 2017. for instance, gdp growth when he was inaugurated last time 1.8, now it's 3. >> right. >> the inflation numbers, it was like 1.8, 1.7, now it's 2.9. higher inflation. unemployment when he first came in was 4.8% now it's 4.1%.

it's hotter. >> 3.6. i have to tell you of those numbers the one that i think democrats misjudged, inflation. they went social issues, people wanted to get the things at the supermarket cheaper. i know doug mcmillon will be on next week. walmart and costco were the -- the vanguard of keeping the food costs down in this country and they did not have any contact with biden. i thought that was a shame. i wonder how much is because you have to be union to get in the room. the union president. >> so you did a deep dive on "mad money" last night about the in spite of or because of the biden presidency. >> a lot of people thought i came out too hard against biden. i was saying i was out west, i spoke to a dozen ceos all of companies that you and i would recognize and nobody had a good word to say. mostly because they weren't allowed to the white house. the lack of dialogue is what they were talking about which

transcended the actual meaning to lack of respect. they felt that they couldn't believe that the president would have no relations with them, as if he was the president from a foreign country. one of them said it was a two year "weekend at bernie's" which was a harsh comment. like a president wilson. >> onerous regulations, lack of engagement with the business community. >> yes. >> and yet business thrived nonetheless. the economy continued throughout the administration to surprise to the upside. >> i just kept saying you guys mad a ton of money. the markets -- i think in the end they say, well, as good as it was it could have been better, and they also wanted to be involved in any discussion about keeping inflation lower. including david -- >> the ceo of eli lilly. >> people think that the ceo,are what president biden said in his farewell speech which was the

oligarch country. that was harsh. the oligarchs, it's america and i think that the soon to be former treasury secretary said you had some oligarchs that got medal of freedom. george soros. >> david rubenstein. >> oligarch. >> there are billionaires like ralph lauren, magic johnson. maybe they don't qualify. >> look, i think -- well, let's say i'm not yet treasury approved. he did say over and over again, sara, these guys made it themselves. >> right. >> and that should matter. >> that's a distinction. >> i think so. do you think so? >> agreed. even if he's right to warn that we do have this class of people where there's a lot of concentration of wealth and power, i think the hypocrisy comes in that they have been backing the democrats probably more so than they have been backing the republicans. >> that's a great point. >> it's not a partisan issue. >> that's a great point. the people i talk to -- there

were two that were republicans, the rest leaned left and they were shocked that they were not in the room given the fact that they're hard-core democrats. that is pretty amazing. >> they backed him in the election. reid hoffman, billionaire. >> right. >> george soros, his son alex soros, billionaire. there is a lot. >> there were a lot of disrespect for the president-elect trump during the pre -- before the election. now it's just if you have a million you have to be in it, kind of the toll. >> now you've got to a seat at the inauguration. bessent's testimony, he made a lot of news. >> i liked it. >> for me the biggest take away is he's going to be the adult in the room, right? >> exactly. >> if he gets nominated and gets confirmed which he should be. >> well, i think in the end he respects the process. i think there's the process respecters and the process undoers and i felt that secretary bessent, soon to be -- i have to be careful of that,

who knows. >> doesn't look like there's going to be -- >> the give and take -- there was a moment when the give and take was senator sanders. >> yes. >> where i think sanders thought that he was going to tee off on sanders, instead they had common ground and there was a lot of respect and then i think sanders had nothing to say, he was kind of like, okay. it was sanders, who is a filibusterer. i thought that was quite interesting. >> he also warned that congress must pass the -- or extend the trump tax cuts. >> yeah. >> and he did warn of dire consequences if they don't. here is what he said. >> yeah, that's big. >> this is the single most important economic issue of the day. this is pass/fail. that if we do not fix these tax cuts, if we do not renew and extend, then we will be facing

an economic calamity and, as always, with financial instability, that falls on the middle and working class people. we will see a gigantic middle class tax increase. we will see the child tax credit capped. we will see the deductions halved. what we call in economics it has the potential for a sudden stop. as i said, traditionally with these sudden stops, it falls on working americans. >> do you agree with that? >> yes, and i think it's incredible that this is the republican party. this is the party of -- it's the party that would always protect the wealthy and here they switch. they switch. i don't know who biden was trying to protect. there is a sense even if you don't believe in trump that the

great middle class is who he represents, the working class. this is the republican party. i hope -- i hope the biden party listened to what he had to say because they have hijacked the core constituency. >> i think they roll their eyes and say, no, it's the party of the rich and they are trying to extend the tax cuts to help the wealthy. >> do they own the supreme court? no. do they own the senate? no. >> elections have consequences. >> you are what your record says you are. i liked his pass/fail analogy. those were the classes you took because you didn't want to get a b or c. i feel strongly this is not the republican party as we know t the democrats better wake up. >> middle class tax cuts. >> party of reagan, that he is from the reagan stance, which now holds up and believe it or not senator warren once lectured me about a lot of the things that reagan did that she liked, but i just come back and say listen up, they took your

constituency and you have to wake up. that's what happened. i think there are democrats who are reeling here that they got hijacked. >> that's the story of the election. speaking of all the money we've been talking about the big tech ceos and the billionaires have been putting their money to work when it comes to president-elect trump and the inauguration which is coming on monday. eamon javers joins us with some new details. good morning, eamon. >> good morning, sara. this is something we've never seen before, the ceos of ome of the most powerful and wealthy technology and media companies in the world seated on the platform for the inauguration of an american president. here is what we know, the ceos of apple, amazon, google, meta, tesla and of course the social media site x will all appear on the capitol's west front. each company has enormous stakes, in some cases possibly existential stakes, in decisions that could be made by president-elect trump. for tim cook of apple, for example, it's all about u.s. tariffs on chinese goods. trump has called for tariffs on imports from china as high as 60% and apple is said to produce

as much as 95% of its iphones and macs in china. jeff bezos's amazon has enormous contracts with the federal government as does his smaller rocket company blue origin. the billionaire who feud wally dallenbach trump during his first term visited mar-a-lago in december, the "washington post" broke with precedent and declined to make an endorsement in the recent presidential election. stakes equally dramatic for sundar pichai with the threat of a breakup of the search giant google looming the trump department of justice will make crucial decisions affecting the outcome of that case. trump has expressed some skepticism of the idea of breaking up google back in october, that may be an opening for google, pichai might be thinking about that as he sits on the platform on monday. it's even more personal for mark zuckerberg, trump has repeatedly threatened to accepted the meta ceo to prison or said he should go to prison. trump would not have the power,

obviously, to do that directly, but his doj would have the power to initiate investigations into meta and zuckerberg has enormous interest clearly in the outcome of the debate over tiktok, the popular and growing social media site that competes with facebook and instagram. donald trump may have a lot to say about the fate of tiktok. we will wait and see next week. elon musk, of course, as you know, has been by the president-elect's side at mar-a-lago nearly day and night since election day, almost all of his companies are tied up with the federal government in terms of regulation, contracts and the like. he's been floated as a potential buyer for tiktok in any trump-brokered deal that might happen after the supreme court weighs in here on tiktok. we will see what happens, but all of these ceos as you watch on monday who will be sitting there at this inauguration all have enormous stakes in what this president might be deciding in the months to come, guys. >> i want to clarify. the president-elect has taken back those things that he said

about mark zuckerberg. that is not the latest state of things. it's much more positive. i know that both of them want to be sure that that's not the case that he is sent to jail. i want to point that out because of the people that you mentioned with the best relationships it's now zuckerberg. >> zuckerberg has clearly, you know, done a lot to get himself close to donald trump, but trump said multiple times last year that he thought that zuckerberg should be sent to jail for a long period of time or for life if he meddles in the election using facebook. trump has said he thinks thinks percent steered facebook against him in the past. those things carry enormous weight. as you look to the calculus inside zuckerberg's head for why he's doing what he's doing you have to take that into account. i think we saw the president-elect ask last week about whether he thinks his threats against mark zuckerberg had an effect in changing

zuckerberg's mind on some of these issues and the president-elect said yes, he does believe that that happened. >> and is the tiktok ceo going to be there? what's the latest? >> we do expect the tiktok ceo to be there as well. in this case we are just talking about american ceos, but we also are expecting the vice president of china to be there as well. this is a president-elect who has given a lot of thought to who he wants to be up there and the message that that sends to the world in terms of american power and the power of this presidency. you know, this -- this president-elect is as powerful a president as we have seen, between the supreme court which is aligned with him idealogically and has granted the president enormous immunity powers, control of the congress, control of his political party, his dominance of some of these tech ceos and what we've seen in terms of his outreach to business, this president is poised to have as much power as any president as we have seen and what we're about to learn is what he intends to do with it. >> eamon javers, thank you very

much. >> you bet. >> going to be a who's who in our world in that inauguration. we do have some data here, industrial production and capacity utilization, rick santelli in chicago with the numbers. hi, rick. >> yes, these are december numbers, sara. we are expecting production to be around the up 0.3 to 0.4% area, triple that, up nearly 1%. that is the best month over month change going all the way back to february of '24. last month we had a positive revision from .0.1 up to 0.2. maybe there is a life. philly fed was on the strong side yesterday. capacity utilization expected to be around 77%. last month was the weakest since april of '21, it gets revised from 76.8 to 77 and the new number is 77.6. that is the best rate going back to august of last year. so definitely some improvement, some positive revisions,

interest rates have turned very subtly, but we did get down to a 4.56 in the ten year and at its current level at 4.58 right now a ten year is down 3 on the day, down 18 basis points on the week, sara, back to you. >> okay. thank you, rick. also want to bring breaking news. just got a filing out of goldman sachs when it comes to ceo david solomon's compensation package. here are the numbers, looks like 2024 total compensation will be $39 million, that is an increase from $31 million in 2023. 70% of it is restricted stock units. normally the rest is cash but actually in this case the rest is some cash and carry points, you know, carried interest which they run a lot of alternative funds. here is another big headline, there is a retention bonus for david solomon and john waldron of $80 million over five years.

they do mention to keep the succession plan in line. i think it speaks to a few things, first of all, eye-popping numbers but in the financial world it is all about talent and maintaining talent to run these big banks. i think a bank like a goldman has to contend with citadel and millennium taking all of its people. >> sure. >> i also think, jim, what a turn of events from -- remember when david solomon was on the magazine covers, the press was against him, he is such a jerk, how can he run goldman sachs, all the people leaking. the stock price is at a record high and the board is going to pay him a lot of am unto stay. >> it was monster quarter. a lot of mention into private equity and private credit. wealth management was fantastic, m&a coming back. both of these people -- i know solomon pretty well. he has evolved to the point where i think a lot of people feel he could even be the spokesperson for the industry.

everyone likes waldron, always have. when i say "everyone" bankers and media. >> is he presumed successor here? >> when you mention the retention bonus i would have thought at a certain point kind of like what happened at jpmorgan you get too old to become the ceo, you don't have enough time, enough window. i just think going back to -- which was the best quarter? >> of all the banks? goldman. >> i love charlie short and he's terrific, but charlie has a great national bank but -- >> this is capital markets time, right? >> when it comes to capital markets, there was none better. it was really grade. i mean, congratulations. i don't like to congratulate charlie and i congratulate david because i think that they are -- they are really two of some of the greatest execs. look at the prices of multiples, 13, 14 times earnings and they're just crushing it. >> they are one of the best

performing sectors of the week because earnings across the board, whether you're capital markets bank or net interest income bank, they've been pretty good. >> people said that citi had the best quarter or morgan stanley had the best quarter. jpmorgan, they're getting an a and have always gotten an a. i marveled at the lines. >> 56 john waldron i'm being told. >> if david stays another four years you would not appoint a ceo over 60. they just don't do that in the business. >> all right, jim, we just scratched the surface. a lot to get to. we're going to talk about the fed. >> much to get to. >> so much. so many movers as well. also today could be the day the supreme court issues its opinion on the tiktok ban. also taking another look at futures, building on the gains we've seen so far this week, looks like we're headed for a nice open with dow futures up 370. more "squawk on the street" when we come right back.

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top green market performers on the s&p intel leading the charge. where did that come from? united rentals, truist financial and lam research. we are in the regional bank earnings mode, we will talk to citizens next hour. >> i like citizens. >> you like it? >> i do. >> it's been one of the outperformers in the group. cramer's mad dash coming up next as we count you down to the opening bell.

time now for cramer's mad dash as we count you down to the opening bell. robinhood top pick at morgan stanley. >> it's been remarkable. you and i both know that this is now part of the conversation when you talk about brokers. youthful, other companies just missed that entirely. a lot of options trading. they will in there buying rigetti, buying the new companies, but the other guys dropped the ball. i mean, look, e-trade didn't even move the needle, i didn't think morgan stanley talked enough about young people. this is the young person's

brokerage house and young people indeed will inherit not only the earth but a ton of money. are they doing it right? i think robinhood is doing great things with iras and retirement. i've been impressed. i can ska the old robinhood has matured, the new robinhood is a share capture. impressive. >> crypto is a part of it. >> crypto the biggest, as apple. crypto by the way are the kind of coins that, again -- are not in favor of. they do a lot of the ones that you and i might think are extraneous. >> there is a new sheriff in town. >> oh, my. >> and the reports are there's going to be an executive order on day one talking about crypto. >> pass/fail. >> and the priority on the government. whole of government. >> look, the president-elect has made no secret that he wants a strategic crypto reserve. >> yes. >> i'm not quite sure where that would be. not at fort knox.

anywhere. >> in the digital world. >> i would like to make sure the block chain is severe. i'm trying hard to get a grip on that reserve because it doesn't jump out at me. >> i'm watching robinhood looking like a higher open, jb hunt is another one you're watching. bearish. >> the call was depressing. this is the trucker depression. the first quarter is going to be terrible. this is a great company. >> -- barometer, aren't they? >> yes, they are the barometer but there was not a single line that i was happy with. and i felt so bad, these guys -- it's very earnest, they've been at it a long time, it's a terrific company, but even intermodal wasn't that good. if you read that you would say we need a rate cut. jay powell should read that so he feels good today. >> chris waller speaking yesterday talked about the interest rate sensitive sectors and how they were suffering, manufacturing and housing and

how we should pay attention to that not just the good jobs -- >> if you are nucor maybe the best steel company in the world you're saying if we don't get a rate cut soon i don't know what's going to happen. we're used to the mag 7. the 7 don't have this problem. do you think amazon is having a slowdown? >> no. the opening bell. the cnbc realtime exchange. the big board, qxo provider celebrating its transfer to the nyse. a nice chant here and a big crowd. >> brad jacobs is the ceo. this is his ninth ringing of the bell. he gets a real quick, obviously his people like that, too. a hostile takeover against beacon, beacon is a company i like, very much wants to stay independent. cheer and cheer on, but it's going to be a real battle. >> with some of his board

members i see, his wife also by his side. >> there you go. >> nasdaq restore nyse a nonprofit raising awareness of human trafficking. >> his wife makes excellent chocolates. salesforce up 6. >> why? >> there is a recommendation today and i have to tell you i think it's all about agent force which is doing so well. the stock will be down soon because there are sellers everywhere on salesforce and i think the sellers are to rethink their game plan. i think the number is going to be very good. the stock tends to open up and then go down. >> it is adding 45 to the dow, second best performer to microsoft. i think we should talk apple. >> why not? >> quite a plunge apple took yesterday. >> depressing. >> i counted four different sources talking about the weakness apple is seeing in the cycle and particularly in china. >> look, people are trying to justify, ever core said, listen, we've got the stronger for longer iphone cycle. yeah, that's true, but the decline i think had a lot to do

with the fact that the stock had this spurt at the end of the year -- >> it was going up every day. $4 trillion. >> nvidia had a similar one and both stocks have just been laggards since the year began. a lot of controversy, a lot of belief that the stocks have gotten overvalued. i say own them, don't trade them. i don't think apple is going to have a good quarter. who does think apple is going to have a good quarter? that's the thing. when you read these pieces of research, they're saying apple could surprise on the down side. then what kind of surprise is it? it's a surprising nonsurprise. >> the question is has it been factored into the price? >> that's what i'm thinking. people love the semis. we are getting today a second day after what was terrific from taiwan semi, now people are starting to recognize that broadcom is worthy of buying. how about corvo. >> 7.7% stake by starboard,

they've been active lately. >> this is cell phones, sara. >> they provide chips for apple. >> apple. >> and samsung. >> cellphone not a good sector. it's just not. it's a no growth sector, but that can change and don't forget there's so many other revenue streams. that service revenue stream for apple is terrific. i love paying for something at 3:00 a.m. that i didn't know i did. >> sure, but the question on apple is china and how bad is it? how much share are they losing? >> if that gdp number were real as opposed to what i think is doctored then you would believe apple is doing well but i think apple down card to the wild side, like a 2 of clubs. >> china 4.9% growth in the final quarter. >> yeah, sure. >> hard to believe. >> declining population rate. my analogy to china is east germany. we thought east germany was incredibly powerful, they would go to the olympics we would say they were amazing, thought the

schools were really great and it turned out to be an empty suit. >> scott bessent, by the way, yesterday in the hearing talked a little bit about china. said it is the most unbalanced economy in history. >> they need exports, they need everybody -- they need help from everyone and they don't want to help anyone. how about the fact that they filed -- they think texas instruments -- fine. you wrecked every industry in our country and suddenly say, wait a second, you guys are dumping and you have the commerce department subsidize -- our industry -- one of the reasons why i think president-elect trump was elected was because the chinese dumped everything of what we used to make. i mean, my father sold gift wrap, they wiped out the gift crap companies so my father started working for the chinese. >> manufacturing problems in the heartland, 100%. >> we all should be cognizant that the chinese are not our friends but they are trying. i think it's smart to try. >> there was a call this

morning, chinese state media confirming that xi and trump spoke, first time since 2021. >> that was a big issue the first time. >> no further details. >> look, i think that taiwan is a hot button because president-elect trump has said why doesn't taiwan pay more for its defense. i get that. that's kind of the nato consistent, right, consistent with nato. >> sure. that's been the whole thing. >> right. >> also raises the question about whether tariffs are an effective tool to get at this. >> bessent said they sure are. >> he said they are not inflationary. >> i like that, even though everything we've ever read all our lives says that they're inflationary. remember act 10 the first thing they said was tariffs are inflationary. >> i thought was case was compelling. what he said was when we raise tariffs the currency appreciates, the dollar, which we've already seen and that is disinflationary, no question about it. he also said look at china, they want to rotect their export economy so badly that they will

lower prices to preserve market share therefore it will not be inflationary. that was the e con argument. >> people are still pulling away from manufacturing. the peso, i know you know currencies, it has gotten weak enough we don't feel it's going to hurt that much if they raise tariffs. >> this is the counter balance on the tariff front. >> bessent is a serious guy. when you sit down and you watch these presentations and interactions in the european world where they interview him, the man is so thoughtful that you're close to secretary yellen, i think that in terms of a chess match, i will bet that's -- he's really excited. exciting intellect. >> he's got the market experience. >> yeah. >> he also has a little bit of an academic background. >> yes. >> she's purely academic, e con focused was at the fed a long time, san francisco, led the fed. they had a pleasant conversation as she told me. >> they sure did. history -- he is not a

historian, but i think he may know more about the way the economy interacts with our country than anyone out there. i've only met him briefly when i interviewed them and that was not really an interview. really thoughtful. >> yeah. >> thoughtful man. >> speaking of, did you see the report that in the china hacking, which we knew about, the that targeted treasury directly at treasury secretary yellen's computer. >> right. >> and also that of the undersecretary. i mean, look, she made a lot of strides and she was very proud of the fact that she opened the dialogue between the u.s. and china at least on the treasury side of things. >> absolutely. >> she went on three trips, i went with her, they respect her. >> i liked that reporting. it was really good when you did that. unheralded. >> what was that? >> i said it was unheralded. >> now they're going to insult her and hack her computer. >> i talked to todd mckinnon yesterday who is, i think, the authority in identity and he was

describing how out of date most of our government is in terms of identity. meaning that you can -- someone is hacking you, you're blocked because they don't have the eye -- vision, finger, and we don't do that. we use old fashioned technology from the '90s where it's very easy to hack. everyone in the world knows the last four digits of your social security number. >> it's everywhere. >> i'm not giving anybody my numbers. we need to have -- we need to have visual, we need to have fingerprint and we don't, which is crazy. >> this is a perfect setup to talk about tiktok and we could get that supreme court ruling. >> that was good. >> look, all the winds are pointing toward the direction that trump wants to keep tiktok. >> i know. >> and wants to keep it open and users from losing it on sunday, which is when -- if this ban is held up by the supreme court, it is supposed to go away. >> but i think it won't. i think that everything is going to be kick the can down the road. president trump surprisingly for

it because what i find the people in cybersecurity i talk to, i've talked to all of them, the chinese have all the data, it's the data that it's about. if you've ever listened to alex karp it's the data, it's the data, i hate you jim and then it's the data, it's the data. >> i always listen to him, yes. >> alex karp that i got on amazon i think it was written by a computer but it was mostly about how brilliant and how stupid you are, you being the pronoun. if they have the data -- whoever has the data is king. >> don't lose sight of the national security risk. >> exactly. >> which is why this whole legislation went into place. >> john roberts a very serious chief justice those were his questions. can you block the chinese from the data? and they were very evasive answers and john roberts doesn't like that. another really thoughtful guy. first in his class. pass/fail. >> can they engineer a sale? there's been little a appetite

on the chinese side to let tiktok u.s. be sold? how do we keep it in the u.s. if it's not sold? >> where is larry ellison? why doesn't he step up and buy it. all of these oligarchs, why don't they buy it. >> elon musk is apparently being considered according to reporting. >> chump change. >> we wouldn't let a chinese company own a broadcast network, they're not allowed, it's against the law. >> tiktok is a broadcast network for our younger people and they learn about, say, the middle east in and i think somewhat distorted fashion. >> it all, look, has to do about the biden administration and the incoming trump administration's posture towards china. of you've been critical on the recent order from commerce on chips to try to -- >> i think that they backed the wrong horse first of all with intel. i think when you do things and you don't check in with -- after the company has been to the letter of what you want, which in the spirit with nvidia, i think you just give them a jingle.

but this administration famously doesn't want to be seen with anyone in tech, they don't want to talk to anyone in tech. i think that they feel that tech is too powerful and the way you insult them is not to talk to them. by the way n terms of whether trump and the money we were talking about with eamon, it's about the justice department. the justice department harassed tech endlessly. endlessly. the way that this administration did things was to sue and then talk. >> right. >> it was always through lawyers and that's not how -- trump will never do that. >> this latest order which you've been super critical about to restrict chips to china ended up hurting a lot of our other trading partners and allies. here is a look at how jim first reacted to that news when it came out. >> this is just what i call maybe the most abusive of an otherwise really stellar period for the commerce department. it's a shame that this may be a legacy because, holy cow, has jensen huang, the ceo of nvidia,

the ceo of amd, the lam research, they've played ball, done everything right and it's not been enough. and this endless foray over and over with, new things. let's treat these businesspeople with a degree of respect. what is going on with that department? that department understood business. that department was one of the few departments in this whole administration that understood that business is the greatest source of social change and the greatest source of innovation and they're being treated as if they are shabby fools. >> you don't think it's just about concerning the fact that ai is an incredibly powerful tool and in the hands of our enemies could be disastrous? >> i think this is a blunt instrument, why not sit down and talk with jensen, with lisa, why don't sit down and talk with the lam research people. what did they do to deserve this. >> let's go to megan kisella.

>> remember these were just the latest in a series of restrictions on chip exports that commerce has released over the past three years. while restrictions have focused on limiting the sales of chips directly to china these limited the specific countries where sharing of chips is unrestricted narrowing it to 18 countries. he wasn't the only one upset by this. nvidia, for example, was warning this week that global progress on ai is now in jeopardy because of the rule. i asked the head of the expert controls office yesterday about this criticism and he says that the rules thread the needle between national security and business. >> do i want that innovation, i want jensen huang to be successful, i want nvidia, i want applied materials, i want amd to be successful, i want intel to be successful. obviously they've been doing that on the chip side, too. again, i don't think that the rules we've put in place are actually going to impact that as much as they think.

>> yeah, absolutely. is there something -- >> i would be happy to talk to jim cramer about that. >> now, he says he did consult with industry on this and said that protecting national security should not be a punishment for these companies but instead it comes with being part of a capitalist democracy. he says he believes the trump team will keep these rules largely intact. they got a heads up that this was coming. he point you had out that the first trump team were the ones to ramp up use of export controls which biden has been building on. he said the push to get the rules out the door this week is that when it comes to national security every week counts, when estimates put our ai technology 6 to 8 months or so ahead of china's. >> they announce every week. they did this at the last minute on a saturday, didn't speak to any of these people. these people deserve better. i want to talk about the countries. how do we designate 18 friends. >> how did we decide to limit industrial which has the best ai and they are not allowed to have

enough chips. >> a close ally. >> portugal, i've never really thought that portugal was that much of a friend of the chinese, maybe so, maybe i'm missing -- switzerland -- jensen traveled the world, the ceo of nvidia, he is worried about the american hegemony. he wants vietnam to have its own sovereign -- sovereign ai. he wants malaysia to have its own sovereign. if they can't get enough chips to do it -- i think that this was a situation where had they been more thoughtful and coherent they could have figured out which countries are our friends. is mexico a friend or is mexico trans shipping chinese fuel to our country? i regard -- they have a new president in mexico, why not give her a chance? >> there should have been dialogue, which goes back to your entire point about this administration. >> there's 10 of the eu countries that aren't included. eu -- actually it's more than eu, more than 10, but these are countries that we have developed

friendships with and when you decide you're not our friend, that's the old u.s. that's the ugly american 1962 u.s. where we choose who our friends are. i just thought it was not in keeping. >> speaking of dialogue, megan, if you are still with us we have heard about this phone call between president-elect trump and president xi. do you have more information? >> absolutely. just a couple of minutes ago the president-elect posting that he spoke with morning with chinese president xi jinping hitting the ground running here. xi is sending an enjoy to the inauguration. trump said a great conversation between the two leaders, great for the u.s. and china. they spoke about trade, spoke about tiktok and that they're planning to solve a lot of problems for both the u.s. and china. not too many more details than that but we do know that the dialogue is already starting to get going. >> it's very positive. i interviewed president trump right there and he said, listen, might surprise us in terms of dialogue with the chinese. now, he did appoint hardliner peter navarro for trade, peter

is no friend of china, but i was shocked. the biggest take away from my interview, we said, listen, stay tuned with china. there are things we can get out of china that would be terrific. i think that president trump is a negotiator and you don't start the negotiations by saying we're not talking to you. >> no, you invite them to the inauguration apparently. >> exactly. we make them pay a million? >> when yellen was in china they talked about tiktok, they brought it up. >> everyone talked about tiktok because they captured the hearts and minds of anyone who is 12 in this country. >> it's a real issue for them. >> you bet it is. >> i wonder what he told him. megan casilla, thank you. >> many people in the media don't have kids or are too old to understand the hold that tiktok has on people. it's almost -- it's -- it's infurial but it's doctrinare. >> that's the fear. before we head to break let's

hit the bond report. a midweek rally helped give stocks release after what has been a persistent climb higher in yields. the 10 year at 4.6. we are off the highs we saw last week. 30 year seeing some buying with yields down to 4.8. we will be right back with "squawk on the street."

here is a look at how bitcoin has performed during the biden presidency, although i would say the last leg up there you see at the end of the chart is really ahead of the trump presidency because he has been the more crypto friendly president here and actually news today that we could get an executive order making crypto a national priority as soon as day one of the new term. >> yeah. >> that's lifting bitcoin again. we're back over $102,000. up next stock trading with jim. agh! cut!

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h-1b issue. we need to work closely on the notion of trade and tariffs, that is a big part of what they're thinking about and bringing manufacturing back to the u.s. and all of those things. so store stop trading we will look at cisco which had a price target raised to 68 from 64 at citi. >> chuck robbins putting on his business round table hat, runs is, but i will tell you that i think that this combination of what -- of splunk, which is they bought and old cisco will produce terrific numbers. the cybersecurity program that they have with the ai defense people is very strong and i think they're going to win a lot of federal and banking business. their competitors are very positive about their -- about cisco's technology. did i not expect that. >> look at the stock comeback. >> it's been a horse. >> it's been a run. >> it's been terrific. i think that chuck is a very reasonable perfect person except

for the fact that he is strangely an atlanta falcons fan, talk about pass/fail, that's fail. chuck is terrific and the numbers will be very good and the pe multiple is very low, 17 times earnings. this is a tech company overlooked. i like it. >> citi could potentially raise their 2025 outlook. i want to check on the glp-1 stocks. novo in particular because now the news is official that novo's obesity drugs will be included in the medicare negotiating program, this was under the inflation reduction act which dictated that medicare could negotiate drug pricing for certain popular drugs. that potentially limits the upside on what is a very expensive -- what is it, $1,000 a month drug? >> i think there are a lot of people who felt that this had to happen. david ricks would be one of them, the ceo of lilly. i think that if you don't have comorbidities with these it's going to be difficult. you talk about $8 billion, maybe for novo and lilly's drug is

superior in terms of weight reduction at the same dose. >> yeah. >> no one thought they would be able to just run amok and i think that while the stocks are down it's going to be the greatest drug of all time and everybody knows that. the persistence level of people who take it is much higher than what we're hearing about. drug and exercise have -- exercise has failed us, okay? diet has failed us. so drug is the way to make it so that people who -- >> well, now it will be more accessible. last round of -- >> it's not a shock. go sell it, i don't care, but it's not a shock. >> last round had a 22% price reduction for the affected drugs. jim, this was fun. "mad money." coming up, the supreme court taking center stage, its opinion on the tiktok ban cod ulcome out in the next hour, "squawk on the street" will be right back after a quick break.

>> good friday morning. welcome to another hour of squawk on the street. i am sara eisen with mike santoli. stocks are rallying here. it is almost up 3% for the s&p 500. nasdaq is up 1.34%. technology is back in the lead. two sectors are lower. utilities and healthcare. nvidia is driving it here. take a look at treasuries. we have seen yields turned around. they are lower, 10.36%. the buying of treasuries has been helpful for stocks this week. >> absolutely, with some goldilocks data. we are keeping an eye on the supreme court as the justices

have been debating whether to block a tiktok band going into effect this sunday. we will bring that to you if and when that happens. >> here are three big movers we are watching. jb hunt is slumping. they missed profit estimates with the lower truck count. novo nordisk is in the red. ozempic will be subject to pricing negotiations. and then apple rebounds after its worst day since august 5th. stock is down 11%. as far as the overall market, you have this goldilocks data. i think it was supercharged yesterday by him. he hinted that first half cuts

were firmly on the table for him if we continue to see good inflation data like we saw this week. i asked him about march. here is what he said. >> january, we need to see what happens. the chair said we are in no rush to do things point we need to see a little more progress on inflation. this month was good, but we need to make sure we get through the turn of the year and make sure it continues. we will have to wait and see. i don't think mark would completely be ruled out, but anything that disrupts that is likely to push back some. as long as the data comes in on inflation and we continue on that path, i can certainly see rate cuts happening sooner than

the markets pricing in point >> i asked for specifics. three or four cuts this year he said would not be out of the question. he said even if the data goes back to last year like sticky inflation, he would say we are looking at two cuts. it is dovish. >> it got way on the other edge of it with pricing cuts last week. >> there is also the question of what happens with

>> they were challenging the law passed by congress by claiming that it violated the first amendment and freedom of speech. what the court is saying here is that these would create data collection by a foreign adversary. we see these concurring decisions. our president leaves no doubt that it does. tiktok compiles and curates materials on its platform. sotomayor wrote that it is a

first amendment challenge. a number of justices are writing, wanting to be part of this decision. justice gersich, writing, i harbor reservations about whether the law is content neutral. if i could get to the end of justice gorsuch's opinion here, whether this succeeds in achieving its ends, i do not know. it may just replace one type of surveillance with another. more effective solutions may emerge, allowing a foreign adversary to spy on americans is another case, altogether point >> i guess the question dose and this wasn't so surprising. we thought they might uphold

the law dose is what happens? does tiktok get band on sunday? >> that is a good question. the biden administration doesn't want the last act of the biden administration attrition to be a ban on tiktok. they have signaled that they will not be enforcing the provisions of this law on the weekend. the deadline happens on january 19th. president trump is sworn in on monday, january 20th. the 19th is a sunday. the 20th is a monday. it's a federal holiday. you're seeing an argument from the biden administration that we will leave it to the next business day for the new executive branch that comes in to enforce this law. trump has said that he doesn't want a tiktok band to happen. he argued that there should be a delay. he should be allowed to broker some type of deal. that gives him leverage over all the players here. presumably he wants that leverage and wants to come up

with a deal that he likes. ultimately, sarah, given that the earth only spins in one direction, we could see a situation where the outgoing administration doesn't want this law enforced and the incoming demonstration doesn't want this enforced. my suspicion is that it won't be enforced and there will be some kind of magic asterisk found by lawyers here in a way to delay this implementation in a way that gives trump what he wants ultimately, which is the ability to broker a deal and do the peace accords of tiktok, whether that is a sale to a u.s. entity, a sale to elon musk, a sale to meta, a sale to someone else. clearly, donald trump does not want to antagonize the americans that use tiktok and the creators and businesses that depend on it for its livelihood. that is a political nonstarter. both parties have signaled that. >> i know there is complexity in terms of how a band would be

implemented. but will the platforms not immediately take it out of the app stores if they believe it is not going to be enforced by the administration? how does this play out from here? >> the service would go dark on the day of the 19th. some people are calling that a bluff by tiktok to say, we are not going to come up with some nuanced fix here. you're going to alienate millions of americans if you let this thing happen. that is tiktok's position going into this. what we know is the biden administration attrition said they're not going to enforce the law, so the app stores and the like will not be required to take it off of their services over the weekend. what happens on tuesday is sort of anybody's guess at this point. it is going to depend now on

lawyers for the incoming trump administration have to figure out a way to argue that they are going to need an extension here in terms of the time. is there a provision which says, there are good faith negotiations ongoing. can they find something to point to that says we can come up with a deal here, and therefore, the president has the authority to grant an extension? i think trump wants that. i don't know what provision they will execute here to make that happen, but the law is a complicated thing, and there might be some gray area that they can find some wiggle room here. this was passed by congress on a bipartisan basis. it is down to trump to make a decision. and then, what is the fate of tiktok? who gets it? they spoke. if they talked about talked about tiktok, xi jinping wants tiktok to be active in the united states. he doesn't want to sell it.

he doesn't want to authorize bytedance to sell it. you have the intelligence community caught in the middle, which is arguing that tiktok is a surveillance operation. bytedance was required to turn over data to the chinese government, and it gives the chinese a huge ability, if they so choose, to push american opinion on all sorts of issues in all sorts of directions that are pro-china. that is a hostile adversary, owning a major media outlet in the united states. the supreme court said, the band of that can go into place, but they don't want that to happen because of the political repercussions. >> so, it is a sticky wicket, as they say. >> many americans use tiktok,

which is presumably white nobody necessarily wants to shut it down, and the preferable option would be to find a buyer. what has china offered anything on that front? the only plausible person mentioned is elon musk, according to reports, but it doesn't seem like they have a lot of willingness to sell it, so how does it stay in the u.s. without the sale? >> you have to look at interests here. why would xi jinping want to authorize the sale of tiktok? he can present to americans, the political elite, a difficult challenge. 12 this thing out right, and deal with the consequences, or continue to let it go as is. we are not making a deal with you. that is a hard line negotiating position, but that is implicitly what xi jinping has done here, by saying, not signaling to bytedance to find a buyer.

now, maybe donald trump can pull a rabbit out of a hat here and come up with an acceptable deal that would be acceptable to xi jinping. under the law in the united states. that is a very tricky thing to do. >> well, this is how the supreme court takes on the issue of its popularity, but at the same time, it's risk. here is from the brief from the supreme court. from this ruling. there is no doubt that, for more than 170 million americans, tiktok offers a distinctive and expensive outlet for expression, means of engagement, and argaret but there are concerns regarding tiktok's data collection practices in relationship with a foreign adversary. >> what you heard from the u.s. government site is concerned about a range of things. all of the young people on tiktok are going to be old people in the future. a lot of them are going to join

the u.s. military. one of them might join the intelligence community. all of their data now being harvested by tiktok and presumably by bytedance and presumably accessed by the government in beijing, all that could be embarrassing to those people in the future, depending on what they looked at, who they were friends with, what they said, what they knew, all of their data about their behavior. all of that could be something that as times change in the future, they might want to be not known publicly. in my own teenage years, my mullet, among other things is something i regret. i say it in a joking way, but it is a real problem. >> i think you are right. it is coming at a time where dose i want to add what you are saying dose what are the stories in the news right now? the phone hacking across nine different u.s. wireless

carriers, another recent headline. >> and what is astonishing here is the political cancellation by the biden administration. biden, of all the politicians in this, biden has the least to lose. he is at the end of his political career. biden has no threat from the outraged millions of tiktok users in the next elections. of all the people in this debate, he is the one saying, i will take the heat. i will clear the slate for trump and you don't have to worry about it.

that is not happening. biden is making some kind of calculation that the politics of this are so bad for him and for democrats in the future he doesn't want the democratic party to be known as the party that took tiktok away. if that is the case, that means that tiktok is basically on removable from american society until it is replaced by a bigger and better algorithm in the future. maybe an american one. maybe not. who knows? in the meantime, the intelligence community will tell you that that gives the chinese surveillance capability over the american public. >> thank you. democrats feel like they have a lot to lose here. we have a bytedance investor, mitchell greene, who joins us now. i do wonder, as a bytedance investor, what would be the best outcome for you after the supreme court ruling that the

law stands, which would effectively shut down tiktok on sunday, unless there is some intervention by president biden or trump. >> sarah, thanks for having me on. i really appreciate it. this has been an interesting journey getting here. i think, you know, our base case has always been that it will be banned. we have always assumed it will be banned. i'm not a politician. i'm not an expert on politics. we have always said that, you know, it will be interesting if and when the chinese retaliate, will actually be banned? the business is based in china. it is immaterial as far as the financial perspective for it. but now you see the people that want to ban the thing say they don't want to ban it.

did the chinese call the bluff and say, fine. we are turning it off on sunday. i find it quite fascinating, the fact that, you know, there is this big chinese company and this global business. they have always wanted to have this. our u.s. government wants to shut it down. and yet, why won't the chinese retaliate and easily to one of our companies over there? >> there is no facebook in china. they have already done it. it's not like there is a lot that would be parallel to what tiktok is. i'm not saying there is not other vulnerable companies. my point is that they have already restricted this type of platform in china.

the other piece of it is, as a bytedance investor, you can be in different because tiktok in the u.s. is a small piece of bytedance as a financial entity, right? >> correct. exactly. over the last 6 to 9 months, there have been a lot of investors, us, included that have bought additional stock and given the overall scope of the business, i think most americans do not fully appreciate how big the businesses over there. the american business, while it does present a lot of options long-term, it is not part of it today. it is a shame because i think there are huge numbers of americans and people globally making their living. tiktok is providing jobs. i do think this is kind of a shame what we are watching. it will be fascinating how it plays out. you have to wonder what mark

zuckerberg is thinking. he would love less competition in the united states. i think there is a bigger thing that people should be focused on in the u.s. i think social media needs to be regulated. it sounds silly for someone that owns bytedance. i have young kids. i'm sure a lot of viewers have young kids. you can't go on cnbc and say whatever you want. the media is related in the united states. i believe that social media industry as a whole should be regulated. i think it is going to take a lot of time. hopefully we'll see that over time. >> you also can't be a chinese owner of american media. should china be allowed to own tiktok u.s.? >> i don't want to get into the politics of who should own what. >> did you have qualms about the national security risk, as an investor, as a father?

>> i do not have that many concerns on the national security risk of it. i really don't. again, i'm not on the national security council, so i don't see all the data that they see. i just cannot imagine the idea of influencing elections. there are lots of companies that try to influence things. i just don't know. >> what about the evaluation? what do you think the u.s. business is worth? >> it has been a rumor in the press that people want to pay 30, 40 billion for it. who knows, without getting into the specifics of it, i think the million-dollar question is, if they were to sell it, does it include that or not? if you ask yourself, what is

tiktok? one of the most powerful social media businesses in the u.s., worth to somebody like amazon, microsoft, facebook, google, and there are private investors that would love to own this thing. the vast majority do not have the capital to do it. then, you need the doj to come in to approve it. who knows what happens there? i don't think this is going to end on sunday. or maybe they will shut it down. you guys banned us and now you get to deal with the political fallout. >> i think morgan stanley was floating an $80 billion number with amazon as a potential buyer, not that 80 is going to be the price, but they have the capacity to pay that pretty but some crazy multiple on the

engagement. >> you don't have to even put a crazy multiple. ask yourself, what is the biggest social media? what is being able to own that to amazon? it might be worth 10% of the market cap, or facebook, or microsoft. you can do a bidding war, as well. so we will secret >> north of 100 billion. and potentially up to 200 billion, best case scenario. that is with the algorithm, though. that is another question, whether the algorithm gets sold, and whether it needs to come as well. >> your guess is as good as mine. we don't know. a spin for american investors would be a great thing. i am pretty hesitant and doubtful that it will happen. we shall see. >> it has been great having you here to talk through it, estimate with skin in the game.

thank you. >> it is entertaining to watch, at least. >> well, it is so interesting because it is coming a day before the inauguration of president trump who will be sitting there with jeff baeza's and elon musk. >> that might not have been an accident in the way the law was written, either. >> if you look at the competing interests, zuckerberg would probably want the ban to go through. musk was brought up as one of the potential buyers that the chinese would look at. fascinating here. politics, national security, social media. let's bring in julia for a look at what it means. >> well, first, i have to point out that the law bans but from slick apple and google from supporting tiktok on sunday. so on sunday, if you lready have tiktok on your phone, it should still be operable, unless the company itself decides to shut it down, which

they have said is an option. it means you could not download tiktok for the first time after sunday and you could not download any updates but there might be this weird interim ppp for the trump administration comes in where the existing tiktok users could have it without any updates on their phone, but if this van -- ban goes into effect, if the admission does not take any action to protect tiktok or o prevent this law from being enacted, we will see social media companies benefit. there have been a range of estimates that indicate that meta would be the primary beneficiary of tiktok ad dollars. they would benefit by as much as $19 million in incremental ad revenue that would come over from tiktok. the second beneficiary is you too. they have youtube reels that is

similar to tiktok. the third beneficiary is snap. because snap is the smallest of the three, it is the one that would see the biggest percentage jump in advertising if tiktok were to be shut down and that is according to various estimates. there are also chinese social media apps that are expected to benefit if tiktok is shut down. one of them is read note. not owned by bytedance but by another chinese ompany. there is another company called lemonade. they would also be expected to shut down if this 12 goes into effect. it would also be likely subject to the same restrictions as tiktok is. there are other apps that have benefited in this time of this tiktok uncertainty and those are u.s.-based social and

entertainment apps that have seen a surge in usage. one is clapper. flip is about monetizing product reviews. and real short is short form entertainment. the short form video series. all of them have seen a surge in usage in the past couple of weeks and would be expected to continue to grow if this ban goes into effect. >> thank you very much. >> biden press secretary karine jean-pierre put out this statement. it will fall to the next administration, which takes office on monday. the white house have reported that they are going to punt on this over the weekend and let the incoming trump administration deal with this

on tuesday when washington gets back to work. back to you. >> what does that mean? that biden issued some sort of order? >> that means he will not take any action to enforce the law over the weekend. that means tiktok will be up and running, unless tiktok makes the decision to shut it down. it will be up and running when trump takes office on monday at noon. so, look. there are legal things here. there are national security things here. the political never late here, joe biden is making a decision that the politics of allowing the ban of tiktok go through is so bad that it could alienate voters. he doesn't want to do it, even though his career is ending on

monday. he is saying he doesn't want to be the guy to shut this thing down over the weekend and it's going to be a trump administration decision. trump, for similar reasons and because he used tiktok effectively during the campaign dose trump has flip-flopped.. trump is very hawkish on china and yet, he is seeing the political power of tiktok and is against a ban on tiktok. it's going to come down to his lawyers to find an asterisk to have a delay here. the big question in all of that is what does xi jinping want? xi jinping clearly does not want a sale. he has not authorized that to happen so there have been no negotiations. under trump, will xi jinping authorize sale to elon musk or

to meta. that's the question. it goes to what was said on the phone between the leaders that were there yesterday when they had the conversation. >> clearly, it will be a negotiation for president trump to take on. eamon javers, reporting the latest. >> let's bring in glenn gerstell. >> everything about tiktok was unprecedented and unpredictable. it started out as an app for teenage dance moves. who thought it would grow into

the most popular app in the history of the internet with 20 million users. five years later, he has the ceo of tiktok sit in the vip booth during his inauguration. >> in the house, it was 362-365. now, 270 days later, by the way, they didn't know what day the ban would occur. it just happens to fall on the day before inauguration. fewer than 48 hours away from the ban taking affect and we really don't know what is going to happen. there has been some suggestion that if president biden says we are not going to enforce the law, what he means by that is i'm not going to tell the the permit of justice to prosecute

anyone here. that makes sense, but the fact of the matter is, the statute is still in effect and it is going to be up to companies like apple and google to decide whether they want to take the risk, maybe small politically, but legally, that ben is still in effect. >> they have to take the risk to keep it on their app stores. >> companies like oracle, which hosts does internet hosting services for the app, they could decide dose because the law applies to them, too dose they could decide they don't want to take that risk and they are going to turn it off. it has taken years of chinese surveillance. there's lots of espionage and

industrial theft and malware. so under that backdrop of chinese cyber maliciousness, they decided they want to put into effect this law that says to sell it or to ban it. at the time, most congressmen didn't want to look soft on china. the particular solution that was proposed here, the span or whatever, was not the subject of public hearings. there were public hearings about the potential national security risk, which is what i think is serious. china is going to siphon off some of the data of american users for aia training purposes. or, to manipulate content on tiktok, and one quick example. what if president xi wants to

invade taiwan and for months beforehand, there is a campaign on tiktok to show that taiwan is not that great of a country. maybe we shouldn't be standing up. >> propaganda. >> so is it a propaganda tool for the chinese government? >> well, tiktok points out in the report that the government has stated that it has no direct evidence that china has affected content on tiktok. but there is the risk that it would happen, and under chinese law as we know, bytedance is required to do what the chinese communist party tells them to do, and so that risk is real, but it has not yet materialized. >> but they have all the data on americans. >> well, again, tiktok would tell you that the data on americans is stored in the united states and not in beijing. so the supreme court in today's opinion said that we understand

that the evidence is not crystal clear on this point, but these risks have not materialized. but they are significant, and the court is going to defer to that judgment. >> and if the platform itself does not have a first amendment interest that overrides all those things. >> that is a good point. this really shows that we are just at the very beginning of understanding how we want to regulate social media. tiktok said, and the court implicitly agreed, without getting into the details of it, that tiktok itself, with the editorial discretion, that it's a gives it a first amendment right. there is a reason people go on tiktok versus x versus instagram. we are going to be struggling over the question of how to regulate social media, and more prudently, the risks and rewards of chinese technology

for the next decade. >> so if what tiktok is saying to defend itself is true, but you just said, the american data stored here in america, no influence from the government. that is what they are saying. if that is true, why don't they just allow it to be sold in the u.s.? >> from their point of view, bytedance thought they would win this case. let's start with that. number two, the chinese have not released the algorithm to a third party buyer. number three, tiktok is a valuable part of bytedance's empire. it is hard to separate tiktok america from the rest of tiktok because those other 2 billion users around the world want american content. if you simply shut off tiktok in america, it is less valuable elsewhere. it is less valuable in the united states. it generates over $5 billion of advertising revenue alone point >> but they could get a pretty

hefty price for that. that is certainly what people have been saying. tiktok would say, we had a first amendment right. and, as an economic matter, this is a terrible decision for them if they are forced to sell tiktok in a fire sale. >> why would they release this point of leverage? >> and who knows what happened in today's phone call with president elect trump and president xi, but you can envision some kind of horse trading going on. president trump loves to do deals. there's lots of bilateral issues between the two countries, u.s. and china, that need to get addressed, and

tiktok as part of that. >> why do you think president trump had such a change of heart? >> i think it is clear in his case. he loves popularity. he has a tiktok account that was heavily followed by young men. and he thinks that is part of what won his election. >> and you mentioned the call this morning. i wonder how much this figures into the relationship right now between the u.s. and china. secretary allen was in china and the chinese brought up the tiktok issue with her. in the context of talking about tariffs and other economic and national security concerns. >> it is a big irritant between the two countries, and but that very fact also gives the ability to come up with a deal because both sides, the u.s. and china, are interested in resolving this. it sounds like congress probably speaking is having second thoughts about the band. clearly president trump is and china has the ability to control the situation. >> so what do you think is going to happen?

>> i want to draw a distinction between what the losses and what might politically happen. president trump will issue an executive order saying i'm not going to enforce that. but unless there is a qualified defense stitcher, which means that china no longer owns the app, if a president determines that, that's in the statute, then the band -- ban gets rescinded. that is in the statute. really having president trump say, oh, i'm not going to enforce the law, isn't the same as rescinding the ban. he has to meet the requirements to give app stores and users and crowd source providers enough comfort legally that even though trump says the scum

of the law would in fact be rescinded. >> the lawyers are going to be busy on this one >> the lawyers are going to be busy. and it hinges on the fact that everything in this case has been unpredictable and unprecedented. >> glenn, it's great to have you here. thank you very much for weighing in. let's get back to julia with more analysis on the social media site. julia. >> so, sara, looking here at the locations for the other social media players in this new period of uncertainty and the fact that tiktok is currently scheduled to get shuttered effectively on sunday, we do expect social media content creators to continue to look for other alternatives. if you look at the top chart right now, in the apple app store of the most popular, the most downloaded free apps, number one is read note. i don't think you can see my phone here. that is owned by another chinese company. eliminate is owned by clapper.

number five is flip, which is shopping in social media creations. number six is threats. after that is temu. if we are looking at the top seven, effectively all but number four is related to finding alternatives to tiktok. there is a lot of shopping that happens on tiktok and temu is creating a lot of content around shopping, as well, so what we are seeing right now on the app store is that people are really looking for tiktok alternatives, not just turning to reels within meta- or the short form video within youtube. but they are looking for something that feels like tiktok. >> why can't americans go to american owned social media companies? why are the best alternatives

chinese social media companies which would carry with it all sorts of national security concerns? do they do it better than meta- or snap? >> right now, there are many people that have those apps and he engage with them daily. there is a sense that most of the formats are copycat formats. we are seeing the theme of posting on tiktok and then on rednote that they are fine with having a chinese spy. there is the sense that i was happy to give tiktok my information and there were people posting this on tiktok because they love the format and they were so engaged with that short form video format. i think overall, we are going to see a huge benefit to meta.

>> where are their parents? >> you can only do so much. >> the other part that i love is due a lingo. -- duolingo. they said their business around chinese language education has jumped 200% recently from where it was. stock was up big yesterday and up big today. >> i mean, yeah. for anybody that really wants to learn another language to have a similar look and feel to tiktok on their phone. good luck. >> julia, thank you. we are going to talk about the implications for the sector. it is very uncertain as to whether this ban is going to happen and being forced by the likes of apple and google on sunday and whether it gets punted into the pump -- trump

administration. >> i think there is a big chunk of ad revenue and a big chunk of time spent that is being unlocked right now. tiktok was the fourth largest advertising company in the u.s.. so when the fourth largest advertising company disappears -- and advertisers are very careful. what do they do? how do they deal with the uncertainty? they publicly follow creators. if they follow creators, and then if they go wherever they go come that is where the dollars will follow. as far as users are concerned, there were a bunch of new tiktok downloads in the app

store. i think that is a flash in the pan. in the next few weeks, we will see the beneficiaries. the circle starts to spin fast with google and youtube as well as instagram and facebook. that is what i think. they are surprisingly not reacting so positively. >> rohit, users will look to spread elsewhere and try out different platforms, but i wonder the degree to which there is really a one-for-one replication of all of the added opportunity. in other words, the verbal reality of tiktok and the engagement level seems to be unique. therefore, it is not necessarily the case that with this given amount of activity and attention, that it can be poured elsewhere. >> i think one thing that tiktok has done successfully is

cracking the code of social commerce. tiktok has done that. they have done it in a way that has become very sticky where teenagers, younger people are doing a lot of impulse buying because they are spending 6 to 8 hours every week on tiktok. that means they don't spend as much time on other apps, like i just mentioned, and the impulse buying that tiktok has facilitated is not something that facebook or amazon has been able to replicate, so i think that amount of economic thing that happens on tiktok could totally disappear. but perhaps it is 30, 40% of the value will disappear overnight. >> i just think, you know, trump has said that he doesn't want to ban -- basically that they don't want to ban tiktok. it is hard to assume that that will happen. it is more likely that they

will find a buyer if china is amenable to that. i wonder how much you think that u.s. business is worth, given that you have some facts and figures around advertising. >> i think china did 11, $12 billion in revenues in north america in 2024 point that is our best estimate. i think if we use comps similar to facebook and other companies like reddit, it could be worth between $75 billion-$90 billion. that is a pretty large valuation for a company to be digested -- divested. with the statement about is china going to allow it? that is where the deal starts to break. >> who do you think is the buyer? >> there have been so many people who have tried to bid on

tiktok. i would also throw people like elon musk into the ring. they have put in a consortium. i would be very surprised if by monday morning, tiktok is still available on the app stores. >> one of your counterparts earlier said that it could be amazon. within the shopping element of it, it could be perfectly leverage appropriate >> if there is someone that can crack the code of social commerce using some of the elements of tiktok, i think amazon is the one that is best positioned here. they know that the younger ablation don't -- population don't use prime at the same

rate. amazon needs that impulse buying and needs to crack the code of social commerce and they are probably the best positioned to figure it out. >> okay, rohit, thank you for joining us. let's get back to eamon javers with an update. eamon. >> president trump has been reacting to this. president-elect trump telling cnn reporters, it is ultimately up to me, so you are going to see what i'm going to do. congress has given me the decision, so i will be making the decision. trump, not saying exactly what that decision will be. i can give you a little bit of color in terms of the thinking inside the trump world, close to trump. there are concerns about tiktok. there is the president's admiration for the political power of it and what it did for

his campaign and there is also this sense, you know, among people close to trump that, you know, tiktok represents a problem for the united states, and you see different messages on social media in china. you see a whole bunch of different stuff in china than you do see on tiktok in the united states, and there is a question about whether that is the heavy hand of the chinese government influencing chinese children to be seeing one thing and american children to be seeing something that is more divisive and destructive than they see in china. so all of those concerns are baked into the case around tiktok in terms of how the trump team are looking at it right now. but trump clearly is the decider here and signaling to cnn in the past couple of minutes that he is going to make a decision, but not telegraphing what that felt dose decision will be. >> you know, eamon , do you think he will enforce the ban or not enforce the ban in some

way? and also, the tiktok ceo being at the inauguration dose how do you read all that? >> if you were to do lobbying, there would be a better place to do lobbying than that. it's an animus opportunity for tiktok to make their case to president trump. obviously, xi jinping has been on the phone with president trump over the last few hours. president trump tells us. all these negotiations are clearly going on. trump has signaled that he doesn't want a tiktok band dose ban. what he wants is for tiktok to be american owned, not banned and active inside the united states. the person on the other end of that decision ultimately, is going to be xi jinping point >> you know, eamon, we also

haven't mentioned jeff yass. it's interesting. what glenn gerstell had to say, but how in the law, the president can deem that there was a qualified divestiture of the business. >> that is the magic asterisk that i was talking about. >> if i was an investment banker, say, create a tracking stock. or let him roll it into that. i mean, who knows? >> and the president just has to deem it. you are exactly right, mike. the president just has to deem this to be a credible alternative. and who is going to second- guess the present dose president on this. they realize the impact of banning this app.

if trump finds a way next week to find that magic asterisk in the law, i don't think anybody is going to second-guess that. >> there was a hint yesterday dose mike walls said that they would put measures in place to keep them. so that may be where we are heading. >> again, knowing that the earth only spins in one direction, if the president doesn't want it to happen, i don't think it's going to happen. the question is how and for how long and once he gets that a stay of execution, if he gets it, then the question is, what's the deal? right? from, this is from somebody that considers himself the

master of the art of the deal so this is going to be one of the biggest deals of all time in terms of figuring out how to finesse this and get everybody what they want. the question is, and again, we keep going back to this. xi jinping. what does xi jinping want? he clearly wants a hugely popular media operation in the united states that he has power over. that is an animus thing for him to give up. what possible trade could be made therefore xi jinping to give that up? >> there are a lot of deals teed up here for our incoming president trump. thank you, eamon, for all the information. >> the market is having a nice rally. tech is leading. the nasdaq is up 100%. we are looking at strong gains. >> it seems like that monday low at the snp, people are feeling as if that is a reliable test of that election day close. we also had a negative turn, which is helpful when you had people get worried and therefore, you have the room for relief rally point so the aai, taking a plunge. we are feeding off of that to some degree. you've got industrial production was okay, and

obviously, cpi is allowed this. >> i was going to say, the softer core cpi and waller's has allowed that economic data can come in hot and the market doesn't have to extrapolate. no cuts point >> we are above the level that we finished with the job number on friday. so, to your point, we are fine with an economy that seems to have come in with a 3% pace according to the fed, and allowing that to be the run rate if yields don't break completely loose and the fed doesn't feel like they have to to get off. >> let's show what is happening with the 10 year yield it is 4.6, and you are seeing the buy. it has given relief to the tech traits. tesla is there. apple, brought, , microsoft, amazon. back to the usual suspects.

>> so you have been able to have people come in and not feel like they are chasing these. >> healthcare, though, is the only sector that is weaker. it continues its underperformance .7 .5% lower. >> there was an attempt at a little bit of a trade for healthcare and it worked to some degree, but yesterday, between unh and the nasty stock reaction, today, lily is the big momentum named in healthcare. it is down 2.2% on those concerns about medicare negotiating prices point >> and novo. eli lilly's own obesity drugs wouldn't be eligible for that distinction until 2029. but still, obviously, that affects the entire sector as far as what else is moving out there. not getting a big boost on meta- , which is interesting, given the headlines around tiktok. we are going to talk to frank mccourt in the next hour, which is one of the insts thveorat wants to buy the u.s. tiktok

business to try to prevent it from getting banned in the u.s. money movers starts after a quick break. “hero owl saves money!” use your vision insurance for exams, glasses, and contacts - all at america's best. i didn't do this for the lights. or the fame. i did it to pay it forward to the next generation of athletes. and pass on the support my family gave me. i believe in sofi because they give the same support to millions of members. helping them bank, borrow, and invest for their future. ♪♪ because for most people, it's not about the lights— or the fame. ♪♪ it's about their ambitions. ♪♪ sofi. get your money right. (in atrocious french) au revoir mon amour. a bientot let's work on that french, shall we? (♪♪) au revoir mon amour. a bientot (in perfect french) au revoir mon amour. a bientot (♪♪)

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(♪♪) (♪♪) (♪♪) good friday morning again. welcome to "money movers." i am sara eisen live with mike

send holy. carl has the morning off. breaking news. in the last hour, upholding a law that would enforce the sale orban tiktok in the united states. the law is scheduled to take effect sunday, one day before president-elect trump's inauguration. the white house saying in an official statement that given the sheer fact of timing this administration recognizes actions to implement the law simply must fall to the next administration. let's bring in washington correspondent amy jeffers who has been all over the news as well as julia boorstin. bring us up-to-date on what we expect to happen this weekend. >> reporter: here is the 27 page ruling from the supreme court, sara. remember, congress passed a law to ban tiktok unless it is sold to an american entity. that has not happened. the deadline is january 19th.