before we hand it over to the folks on squawk on the street. they've got a whole number of big interviews you do not want to miss. this morning. the dow off about 62 points. you're looking at the s&p 500 off as well about 14 points nasdaq after it was in the red. and now in the green up about 20 points leslie and mike thank you for hanging out. see you tomorrow. make sure you join us tomorrow. squawk on the street with all those big interviews coming up right now. >> good wednesday morning. >> welcome to squawk. >> on the street i'm carl quintanilla. >> with jim cramer. >> david. faber at post. >> nine of the new york stock exchange. >> it is. >> a. >> big and. >> important day. >> a fed. >> decision a. >> meta microsoft tesla tonight confirmation hearings for rfk. jr and howard lutnick and. >> the confusion. >> from tuesday's federal funding. >> freeze now blocked ten years. >> for 52. >> a road that begins. >> with the eye. >> trade, though openai accusing chinese rivals using its work. >> for. >> their apps. >> nvidia shares. >> waiver premarket. >> and big tech as we said,

including microsoft after the bell. >> plus, we're keeping an eye on shares of apple. they're under pressure in the early going here. continuing concerns about iphone demand. a company, of course, will. >> be. >> reporting earnings tomorrow. >> along. >> with so. >> many. >> others coming up this hour. the ceos of both starbucks and t-mobile. starbucks notched its fourth consecutive. decline in same store sales. t-mobile's forecasts? well, they were above much of what the street was anticipating. >> let's begin with the. >> chips trying to extend their rebound from monday's. >> sell off. jim asml is surging, but. >> journal, with. >> a. >> piece looking at. >> whether or not deep sea sort of uncovers nvidia's liabilities. >> well, look, i think that there's a perception that that. more is less, more. >> chips. >> more people. >> who know. >> how to use them more out of china means less. >> for nvidia. >> nvidia's been. >> quiet. >> but what they may. >> have advised people, look, you can look at the. ces post interview. >> not good enough. >> i think. people have decided

that we. >> had a rebound. >> but the. >> reality is, is that the orders will decline. >> by the way. therefore. >> the power. >> will decline. >> because people are figuring out how to. >> use more. >> with less. >> and david. >> that's the negative thesis. >> that's the big negative thesis. >> we've been talking about it since monday. well, yeah. i'm just kind of going it over with people. >> okay. >> but asml. >> does not. >> say good things. it says bad things because what it says is look, there's a lot of equipment being used. the more. >> equipment they use. >> again we have more. >> is less. >> so the whole world. >> is kind of coalescing. >> upon the idea that nvidia is not as. >> special as we thought. >> and that's what. >> i'm trying. >> to. >> figure out. what does that result in, jim? because we've all been having conversations these last few days with as many people who make decisions about what to buy and sell in terms of this area. and the one thing i've heard is maybe it's the out years, maybe the multiples simply comes down because there is more uncertainty. >> in. >> the name. >> okay. >> we watched, i'm not sure i watched ben carson yesterday. i mean, there's. >> a sense. >> that the multiple has become.

>> very low. so it's actually one of the lowest. >> among several brands. undeterred. by the way, he's no no big believer in the overall growth not being in any way impacted. you know, i suppose. but if you don't accelerate a compute is the present and it's the future. yes, it is. >> and i would tell you, they still have a tremendous lead. >> is china. >> an existential threat to them? >> what china says. >> is that. >> maybe you should. >> pause, but. >> i'm going to come back and say something that i think that people should remember. >> if larry ellison. >> and mark zuckerberg and presumably elon musk. >> were all buying the. >> highest end chips. >> did they. >> not have knowledge about what. was going on in china? >> i think that's fanciful. i think that. >> i think they knew i agree with you, which means and by the way, i mean, there were the way this news played out is puzzling to some because there were plenty of people who were aware of deep seeks, not just its aspirations, but what its accomplishments previously with the previously released models.

and so they had. to have been aware of this. and so when you look at zuckerberg spending 60 to 65 billion, the announcement obviously just on friday, you look at the stargate announcement from last week and or nadella affirming $80 billion and everybody else. they had a no jim. yeah. and they were undeterred at this point. but everybody's looking everywhere for signs right. even owens corning which which provides fiber into data centers i think was a positive read this morning. yes. people are always looking for affirmation, right. >> i think that we're all. >> kind of used to the greatness of jensen. >> huang and nvidia. >> i mean, carl, the most. substantive thing. >> that people are. >> hanging their. >> hat on is that all of these. >> customers were mesmerized by president. >> trump and. >> felt that they have to order. now, that's almost conspiratorial. >> i think. >> that they. have more in mind. >> than just doing. >> chatgpt in an advanced way. >> if that's the case, then these companies in china, they

have figured out. >> how to. >> do the lower end. >> i think. jensen would say, well. >> that's terrific. what we're on is a. >> very different plane. we've left. >> that behind. we're not about. >> asking them about why did brinker. >> have a good quarter? is starbucks. >> coming back? >> did t-mobile. >> take share? >> that's the already. >> in the industrial revolution. >> the that's the cotton gin. >> i mean, he's talking about making. >> the sewing machine. >> and i think that people don't. >> realize that he is. >> a visionary. >> and he is well. >> ahead of everything we're talking about. >> so you don't think there's downside to it, at least the margins? >> i do think that. >> there will be. >> and. >> i. >> think that's. >> why you're seeing. >> some compression. >> but until. >> someone actually. >> has a better. >> chip, an actual, better. >> chip. >> and therefore. >> we have to see amazon and amazon. >> is going to report. amazon is the one that is really rival. >> i was. >> surprised that advanced micro actually went down because people feel, hey. >> listen. >> if this stuff is so easy, let's put it on amd. but i think. >> that a lot. of that was using amd chips because you don't need

all the compute power of. >> the. >> highest gpus from nvidia, but i don't know. i would love. >> to see lisa sue. >> talk about it. you know, we're in a quiet. >> period for everybody. >> you can't get. you can't get the. stuff that you like. we're going to get certainly plenty of questions about it. on all the calls that are yet to come, right? whether it's meta, microsoft and on from there. it is the theme of the moment because some people saw it. >> coming, and yet they still ordered that would be the zuckerberg case, maybe the musk piece. and then other people just said, oh my, what am i in? i'm going to go. >> buy a double. >> short nvidia. >> and then there are. >> other people who think it's a hand cream. >> well, there's another way to view it, which is that the deep six accomplishments. and by the way, alibaba today as well, i know this model. people again were aware of this. this is something we've been told some time ago. but they you know, released a new upgraded ai model that they say surpasses deep six v3. all of it though could point to sort of that exponential change that we fail to appreciate sometimes because

it's sometimes just can't quite rattle around in the or some people's brains in terms of how quickly things can move. it was only a couple of months ago. we were worrying that these models were running out of things to train on, that they were not progressing as quickly. no one's. >> talking about scaling walls anymore. >> no, no. and in fact, you're suddenly seeing these efficiencies that have been added, these techniques that are different, open source, so available to all. and it does bring up the idea that there could be even more change more quickly. >> i mean. >> even more compute power potentially. right. >> but the more. >> is less means that maybe the monopoly rent that people feel that. nvidia was. >> charging is gone. >> there's also the frankly, we saw we had we had ge yesterday. the idea that maybe we this whole concept of more power is ridiculous. i had rusty brazile on he's my guy and energy. he was saying, are you kidding me? i mean, you really think that all these plants are going to be built? i'm waiting to see. i think the tests would be is three mile and not going to be

reopened? that would be one that i need to hear. and secondarily, i need to hear that there are any order pullback. and i have not heard that yet. but that's not necessarily what people are going to announce that they listen. i've decided if this thing only needs one tenth of the. >> power. >> one tenth of the compute, well, i'm going to cut my orders by 9/10. i've not heard that yet, but this thing is a. >> steamroller real quick. by the way, i got corning. i think i may have said i meant corning. we know corning glass glw. of course. >> glowworm we call glowworm. what's funny, by the way, owens corning was considered an the great atlantic article. did you read that about the pyrex plant closed? the atlantic was one of the last things that was said about how president trump created a fracas about cats. springfield. >> no, i know. >> we're not the. and he thought it was the extent of pennsylvania. i know that the president won. and i'm looking at bobby kennedy jr. i mean that's retrospective. david was saying who was president biden.

exactly. remember what i want to try to bring him up. and you were like, what are you talking about? >> he's out. i got to tell. >> you, i. >> love you. >> i have no idea what you've just said. for the last 30s. >> i made. a reference to the previous president, and. >> the one. >> who. >> was president ten days. ago somehow went from. i don't even know. no, no, i. >> can go. >> to glassworks. >> to david. >> and dogs. >> to pennsylvania. just google the road maps and you'll see where i'm going. you're on uber, switch. he's going on uber. well, one. >> thing we. >> do need. >> i to say. >> what did jim. >> just say. jenner they are going jenner. >> i it's the. >> only way. you're so cheap now i use this i see this was the blackwell. forget about it i use this. that's a picture of my wife. >> what you got going on in there is. more powerful than any blackwell. >> that one. >> there is pretty good. >> yeah, we. >> don't want to use that silver. he's got the silver in there. >> when we come. >> back. an exclusive. >> with starbucks ceo brian niccol on his company's results last night. and the turnaround. >> plan. >> i'll talk about the comps and what they've got in. >> store on the road ahead. >> a lot of earnings to. >> a lot of earnings to. >> get. to

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>> create tomorrow. start today with new investment products backed. >> by superior. >> risk management, asset management. in a time of disruptive change, financial well-being accessible to. >> all. >> call today for tomorrow. >> let's talk ai. >> ai in china versus ai in the united states. >> deep sea. one of. >> the companies. >> within china. it's been reported at. >> least that they have a cluster. >> of. >> 50,000 nvidia gpus. >> deep sea. their model is actually the top performing or roughly on par with the best american models. if you see the deep sea new model. it's super impressive and it's super compute efficient. >> we're not just. >> about managing information. we're about supplying digital workers. now we're making this

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something that we get to use every day. >> sometimes it's pure. >> joy to do this job. starbucks results beat on the bottom and. >> the. >> top line. despite some same store sales declining for a fourth consecutive quarter, but a little better than we thought. starbucks chairman and ceo brian niccol. yes, you probably remember him. chipotle joins us now. excuse me. brian. it's a great pleasure to have you on the show. >> yeah. >> great to see. >> you, jim. >> to be with you. >> all right. so brian, let's get right to it. because many of us, if not all of us, are at one time or another with starbucks customers. i see the partners as being beleaguered and overwhelmed. i see the customers frustrated with wait times and mobile ordering versus in store. first in, first out mosh pit. herculean task. are you up to it? >> yeah. >> look, i am. >> really proud of the progress. >> that we've made. >> and, you know, you mentioned. >> some. >> of the challenges. >> we're. >> facing. >> but i. >> think i've outlined. >> hey, here are the four. >> key. >> things we're going to do to. >> get. >> this business turned around.

>> right. >> first. >> reintroduce the starbucks. >> brand to the world. >> you know. second. >> we got to make sure our partners are supported. >> the way they. >> need to be supported. it all starts and ends. >> with them. i think. >> this. >> testament of 90% promote within. >> has. >> really resonated. with our teams. >> and then. >> also the idea. >> of. >> making sure that we. >> simplify the process, bring order to mobile order. you know, the third. >> thing we said we were going. >> to do is obviously bring back the idea. >> of a coffee house vibe. >> hopefully you saw. >> that. >> with the condiment. >> bar coming back. >> you know, when you. >> stay in our stores. >> now you're getting a ceramic mug. some free refills, and then obviously the other thing too is we got to. >> win the. >> morning and you're starting to see us do that. >> and that's what i was really. >> excited to see. is we're starting. >> to. >> see progress. as it relates to. >> our partners being in position, being supported. >> correctly, eliminating some of the noise so that we can get after. >> the great craft. >> the great. quality and really have people. >> experience, you know, the premium experience of starbucks. >> and i. >> think that's what you're seeing. >> start to take hold for the business, small steps forward.

but i. >> love the fact that. >> we're going forward. >> now, i understand that things got better throughout the quarter, and i'm wondering whether that isn't because you're starting to put some of the great lessons of what you did at your previous employee of chipotle, particularly, time to order throughput and yet throughput, but not sacrificing the personal experience by putting names on cups. can you get some of the great things that you did at chipotle to really work for you at starbucks? >> yeah. look, i'm really. >> proud of. >> what we accomplished. >> at chipotle. >> starbucks obviously. >> a little bit. >> different business. >> but at the same. >> token, a lot of principles apply. and i think. >> that's what you're. >> pointing at, jim, is. we're really rallying around the idea of we want. >> to get after. >> these four. >> minute speed. of service experiences. >> with a human touch. >> and that's why you see us. >> bringing back. >> the sharpie, bringing. back the idea of making sure that the baristas. >> all their. >> green apron partners. >> have the time.

>> to. give people the greeting that our baristas frankly. >> love. >> to do. >> and then the handoff. >> i've talked about this as like. >> the moment. >> of truth, right? when they say. jim cramer, you're you. >> know, i think it's what is it, jim? a cappuccino. >> with four shots. >> and you. >> know that's a great memory. >> that's a great memory. >> so you know. >> i want them to. >> be able to have the. >> experience behind the counter. >> where they have the ability to connect with customers on every transaction. >> and what i think is really important is if. >> we set things. >> up correctly. >> we can do. >> it in a. >> way where the. >> in-store cafe gets great speed of service. with a. great human touch. the mobile order gets the right speed of service with a nice. >> human touch when you. >> show up, and the same thing. >> can happen through the. >> drive through. >> i'm concerned about mobile order. it's really a complex issue, particularly how it relates to people in store. i also believe that mobile order may be the forefront of when you're starting to get the non rewards people to come back, which i think is a great metric

for you. can you explain to people the problem with global order why it's so hard and some of the solutions you're thinking about? >> yeah. >> thanks for bringing this up. >> you know two things that i was really excited to see over the course of the last quarter. >> one, we're making. >> progress with. >> non rewards customers. we had kind of failed to really interact. >> with our. >> non rewards customer. we had. >> gotten so reliant. >> on discounting through our rewards program. >> we really forgot to. talk about. >> all the great. >> things that are starbucks. >> and i think you saw that. >> in the most recent. >> ad we broke. just showing that connection of writing. >> on cups. >> we've got some new. >> ads coming to. >> and we'll be. >> shopping in places so that we can. talk to our non rewards. >> customer, invite them. >> back into the stores. on the mobile ordering side of things. >> look, one of the challenges. >> we have is the. >> way. >> the. >> system is set up right now is it's all about first in, first out. and so. >> it. >> doesn't take into. >> account what's in the queue. >> what people are actually in our stores. and i'm really excited about the progress that we're making on using technology deployment, and then. also ensuring that we're staffed correctly so that we can.

>> manage. >> you know, mobile orders in sequence with the in store customer. and we've got that in a pilot right now. i think i shared with some folks, even on the earnings call yesterday, i was swinging by one of our stores yesterday morning. it was really delightful. >> to see. >> you know, we had gotten rid of. >> that congestion. >> area at the counter. >> the in-store. >> customers were getting served. you know, right around that four minutes or better. the mobile ordering was it just. >> had a lot of order to it. >> and as a result, there was just a. calm and an element of connection. >> that. >> was back in the store and gives people that experience that they. >> want. >> from starbucks. so i'm optimistic about what we can do. a lot of work still to. >> be done. >> on this, but i do think this is a big. >> unlock for us. >> going forward. >> before i pass it off. >> to my. >> partnership. >> a lot. >> of people feel like you should give. >> up on. >> china, maybe offload it to someone, maybe split it. you just came back from china. wouldn't you be giving away a gem even as it is a deflationary environment in china?

>> yeah. >> jim, i'm glad you brought that up. i just. >> took. >> my first trip to china. >> it is a tremendous opportunity. the coffee category and just the whole drinks away from home category is to your point, it's a gem. and yes, there's some challenges right now. >> from a macro. >> standpoint, but i also think there's a real opportunity for starbucks to continue to own. >> the premium. >> coffee experience, that third place experience, and then also do some things as it relates to. menu management, pricing architecture. >> some. >> pricing, or, i'm sorry, menu innovation, just to make sure. >> that. >> we have the right products for the customer in china. and, you know, we're. >> going to continue. >> to figure out what is the right way for us to grow in that market. but look. >> i. >> think there is tremendous opportunity down the road in china. >> you know, brian, one. >> thing that's. >> resonating more. >> broadly back here. >> at home are coffee. >> prices at an all. >> time high and. >> egg. >> prices at an all. >> time high. and i'm. >> wondering how you're. >> thinking about. >> commodity pressure. >> right now.

>> yeah. you know, look. >> right now, fortunately we're in a pretty good spot as it relates to our, you know, traditional retail business. the team. >> does a great. >> job of being in front of these coffee prices. as you mentioned, though, they are at all time high. you know, we're going to keep an eye on how this ultimately translates into our business in kind of the channel business or down the aisle business. but look, our hope is we can manage through these higher costs and continue to get people refocused on the premium value experience. you get inside a starbucks store. >> all right. >> so brian i'm sorry. i'm sorry. it's david. if i could just come back in listening to you and all the efforts that you're undertaking here to obviously make the customer experience better, i it sounds like you're going to need more people or you're going to need them to be more efficient. i'm just curious how it all plays out in terms of the use of technology versus additional staffing and what that ultimately will ultimately will mean for margins. >> yeah. >> look, i think. >> in the in the long term, i think we can grow this business in a meaningful way so that our margin expansion will happen.

you know, here in the near term, we are definitely testing and learning our way through how we use technology to sequence the experience, both for our baristas behind the counter and for our. customers that come into the store. i want to get to a place where it is completely reliable. every time you come into our store that when you order your coffee, whether it's a brewed cup of coffee, you'll get it almost like within minutes, because we'll hand it to you right at the pos. you can go customize it at the condiment bar on your own, to the delicious craft coffees that move down the counter. use our baristas to do their craft, and you get your coffee in roughly four minutes or less. at the same time, though, i'm also testing what is the right deployment and how do we make sure we've got the right staffing behind the counter so that we can have that human connection with the right speed? and so this is why we're really taking this approach of testing and learning, because i want to make sure we do the right thing so that we can provide the right service model every single time.

i'm highly confident that we do that over time. that will give us the foundation that we can grow from, which then will play out, obviously, in improved economics from where we are today. >> all right. so brian, i just want to kind of wrap things up as someone my trust has a big position with you, i'm not going to say with starbucks, but with you. and i want to know whether, oh, look, i'm telling the truth here. i'd like to know where you are in the turn versus what happened when you came in chipotle. and so many people were skeptical. people were worried about the franchise. where are you in terms of the turn here versus then? >> you know, look. >> we're definitely. >> in the. >> early days of this, but i am you know, i'm optimistic on what i'm seeing. i believe we've got the right strategies. i believe we're working on the right things. and i also believe the organization, both the barista green apron culture is excited about what is to come with getting back to starbucks. so i'm very optimistic. it's early days. it's baby steps with what we've done. but you know, look

you need that first little inch and then you turn that inch into a foot. and then we'll continue to grow from there. so i'm very optimistic about where we can get to from here. >> then i share your optimism and what i have to end by saying, go, birds. >> hey go eagles baby. >> thank you brian, great to have you on the show. >> yeah good. >> seeing you guys. >> all right. well coming up we're not done with ceos. t-mobile is among the morning's best performers. that is the stock quarterly results subscriber growth guidance all above what many analysts had been expecting. and ceo mike sievert is going to be live and first on cnbc right here first on cnbc right here shortly. ehh... hmm. oh, that's very, uh... - right? - mmm... this store doesn't have agentforce, so an ai agent didn't tip off the stylist as to what i might actually wear. - yes. - oh. that's a commitment. [glass knocked] hey bud! whaddaya think?

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>> let's get. >> a look at the. >> opening bell this morning in the. >> cnbc realtime exchange at the big board. it's reach out and read bringing books to children in new york city. and at the nasdaq gets her. >> first hundred k. >> a female focused financial. >> literacy company. >> as we. >> take stock of how. >> you think. >> the market has. >> handled this wave of news. >> this week? >> well. >> look. >> i think, of course, we're about to be going into the real gantlet with with tesla tonight and apple, but i'm seeing some some definite things that interest me. if you offer value at a price, take a look at breaker today symbol e i've got covid tonight. royal caribbean yesterday a carnival value at a price is winning. and that's something that i'm very excited about because, you know, one of the things that we've been concerned about, david, you know, this is inflation. and yet when you look at the inflation beaters, which are companies that offer you evaluative

premium, it's working. >> right. >> very interesting. >> i mean, the worries about inflation have not gone away. no. we're still we haven't really talked much this week given all the other news about the trump administration, but they've been awfully busy. and when it comes to tariffs it's still unclear, although it does appear that it's going to be pretty muscular. i think that's fair to say at this point. i'll defer to some of the reporting from megan cassella and others of our colleagues and then the deportations as well. i mean, those are the two things in terms of inflation, jim, that we've been focusing on. i don't think we have an answer on either front yet. >> no, we don't, but boy, do we have an answer on this. i'm like adopting this muscular. i had a leon topalian yesterday. he's the ceo of newport, the country's largest steel producer. >> yes. >> the tariffs will be real. he believes that the chinese will be shut down. it's being coming in. it's coming from canada and mexico and it will be a halcyon time. he is seeing a level of optimism among his customers, which amounts pretty much

everybody. that is surprising him and is meaningful to his numbers. optimism. >> it's a great point. i think there is a hope in some way that at least nucor or even a us steel or cliffs, apart from all the drama having to do with u.s. steel, that ultimately the industry itself is just going to benefit because they are going to be very tough when it comes to these tariffs. >> we're talking about reshoring volkswagen, talking about taking 4% share going to 10%. one of the things i really liked about leon, he says bring it on. we want reshoring, but we will go up against any steel company. orders are one of the key things. they bought. a company that makes steel goes into warehouses. we're not talking enough about prologis, the largest warehouse company, which called a bottom last week a bottom in perhaps one of the industries that we were so down about, which is warehouse. now we're just focused on data center and how weak they have to be because of the nvidia problem. can you imagine the nvidia problem? >> i mean. >> that next run, jim, i.

>> mean. >> that was. >> stankey's point. >> yesterday that. >> we're going to come in here more often with a player saying we've got a better a better model. that's going to happen with more frequency, not. >> less the fluid fluidity of the situation. last night i had marc benioff talking about the split up with, you know, with david, we're talking about a split up with with openai. >> you mean the microsoft openai. last night. oh, by the way, altman and nadella were just together showed a picture of themselves. i mean, it's it may be overstated. >> benioff was flagging that. it's saying the combination. it's done. what do you mean things are going to they're going very fast. >> here's the picture we're referring to. >> they're going very i mean, this was supposed to be these guys were supposed to not like each other. that was how long ago was that? >> that was yesterday. >> you know, last week benioff in davos said that america is supreme alone at the top. and then you had to kind of take it back and walk that back because of the chinese little walk back. >> benioff did talk to you about this last night. >> take a quick listen.

>> the majority of the models are american models. but here we see now the chinese also coming in with not only an aggressive competitive model, but one that's cheaper and lower cost. so it just gives everybody the motivation to keep going and going faster. >> well. >> i mean, what that says to me is that nvidia has to come out and either say democratization is terrific, but we're really on another plane doing different things, or nvidia can can say, you know what, we got to work harder because the other guys have something we don't. if he says the latter, then the multiple will shrink. if he says the former, then the multiple could grow and we would regain higher. have i. >> heard. from jensen yet? at least not publicly. the earnings are not for a little while. jevons paradox though people still want to talk about it. i know. >> well, you know, i'm. an expert. >> by the way. now, in the 1865 economist and great britain. >> and when you. >> said that the. >> first time i thought about it, i was thinking, maybe he's

thinking that that devon energy is going to get a takeover, but that is widely thought. you thought what i said. >> yeah. some of his friends called him javon, some called him le'veon. but i went with jevon. >> yeah le'veon i. mean he's good at music too i mean this guy wrote. >> a. >> great song. about him. >> yeah wow. but tiny dancer diva. >> meantime jim. >> you do have some market. >> commentary to play with. >> today steve. >> cohen down. >> in miami a lot of managers talking. i would expect the markets to top. >> over. >> the next couple of months. thinks the second half might be tougher than the first. >> i know steve, steve. i think the world of him, like anyone who's in that business. and david, i think he's going to echo this. other than the mets situation, he reserves the right to change his mind. he does. >> and many of us are hoping he will when it comes to pete alonso and what he characterized as the structure, he didn't like being offered to him from scott boras. so really, that's all that matters when it comes to steve cohen. you see the mets hat. we really don't care what he thinks about the market. all we care about is whether you're going to sign alonso. so figure

it out. please do it. >> what's the price earnings ratio of alonso. >> it's i think he's undervalued right now. >> oh well there you go. maybe he's going to do a buyback offer. maybe some. >> of the parts only 30 years old. they're pretending as though he's you know on the on the back end of his career. come on. >> man i was thinking he might go with that. he was about to say that alonso is going to bid for spirit now, that. >> alonso should have a contract that would put him in a position to bid for spirit. yes. we talked a lot about china just real quick. it's been closed all week. the market there for the lunar new year. so you're not able to see the reaction in many of the shares that you might otherwise. and i think it would be positive. your friend david tepper perhaps would be benefiting. >> my friend buddy pal david tepper. he likes alibaba. i look i think china's. >> are about 2%. >> but you know, when i talked with brian niccol, i think that it's really pretty good job in starbucks talking about the word deflation. now deflation is incredible because i don't think people remember in the 20s deflation is harder to break than inflation. >> yeah, we generally don't.

>> like it. >> right. because the mindset is i will gladly buy something later, but not now. and you have to get people to feel like it is worth it to buy now. and there in in china it's not happening. and the and i think that we can point to lvmh as a great company obviously bernard. no, no no longer number one. but lvmh, what people are saying, you know what? i'm going to wait on that and waiting on that because it's going to come down in price is usually a fool's game because no one wants to break price. >> yeah. >> organic up only one. at lvmh wine and spirit down eight. perfume was. >> a. >> bright spot, but not as good as the. richemont and burberry numbers of recent weeks. >> you're supposed to be doing okay, i will tell you that. wine. i don't know what's happened to wine. could could be chad, but they're playing for the month of january and wine's plummeting. wine is collapsing. >> it is. whiskey is collapsing. you can buy. yeah. it's a great time to be a buyer of wine. >> why? if i'm honest, i would

say even next week is going to be better. >> if you. it may be, but if you like to drink it, it's. it's probably a good time to be buying some wine. >> you like to drink it. okay. well that's interesting. >> isn't that fascinating? >> well, i mean, you've given me this alonso, the guy who played for the guy. didn't he play for the miami? i don't know who. alonso. >> alonzo mourning. >> no. alonzo mourning. yes. pete alonso. >> the first baseman for the. >> new york mets. okay, okay. i don't know what. you know damn well who he is. i like i thought we did. >> beat your phillies. >> i thought the cuervo paid for watching that. >> i mean, you may have a big game coming up for another philadelphia team because you guys are always in the playoffs. it's just horrible. >> i remember a time when the 27 world series that they won. oh, you played for them. that was the. across town. i was there with buckner when buckner went to his leg. >> you were. >> in 86? no. he missed. he missed the quarter like. like you would. >> we got apple down about 1%. >> but you bring that up. >> it's been a good week. the

stock sort of reacted positively. you know meta to me is one of the more interesting. some 14 plus. >> percent in every single scenario. >> and that there's apple. >> every single scenario. >> another downgrade today. >> what do you think about the opco down juiced out? >> i don't have a thought. >> on that. okay. >> you give me your thoughts. what do you got? >> well, first of all, it's supposed to be a downside. surprise. who's left to be surprised? i need to know who's left to be surprised in this downside. surprise. second, the forecast is supposed to be really terrible. okay, third, china is supposed to be awful. the only guy who's really doing well in selling higher end phones is t-mobile ceo mike sievert. so i come back and say, if everyone knows that something's horrible, can it still be horrible? >> well, it is. down today, 1.3%. so maybe you're getting your answer. >> was much lower. i don't know. >> going into this quarter to sort of i mean, is there a chance that they're going to. yeah. too hot taekwondo. no taekwondo. >> i don't know a joe rogan. joe rogan of course is replaced. i don't know, president lincoln washington being our chief

spokesman. is that true? yeah. i think he's the most statesmanlike person in our country. who's that? i would agree with that. who? joe rogan. >> joe rogan. yeah. >> yeah, i have to. maybe mike sievert knows whether joe rogan is the chief spokesperson. let's bring let's bring. >> him in. take a look at shares of t-mobile up over 7%. the telecom giant did report stronger than expected annual subscriber growth. they issued upbeat guidance, higher postpaid net customer additions. mike sievert, good to have you here. >> thanks for having me guys. >> and you know. >> we like to. >> ask the tough questions here. but i'm afraid i don't know, man. i mean, the only one i guess i have is are you confident that you can keep this up? because it was a very good quarter and a very good year being reflected in the stock price right now. what gives you the confidence, this kind of growth, this low churn will continue in 2025? yeah. you know david, first of all we just issued the highest. beginning of. year guidance ever in our history. >> it's kind. >> of. >> interesting because we've had a. storied growth. >> history in this company. >> and people, you know, they ask me once in a while like is this, you know, is the is the

biggest growth year? are they in your past 24 was the biggest growth year ever in our history. and that's just because 25 hasn't happened yet. and here's the reason for it. the consumer for our business is. >> firing on. >> all cylinders. but business is starting to come up and contribute way. >> more as well. >> and so you don't. >> have a soft spot. looking across top 100. >> consumer markets. smaller markets in rural areas and then now. >> across multiple segments in business. and they're all contributing. so we went. >> ahead and guided our highest postpaid net additions for the start of the. >> year ever. >> and we moved our service. revenue expectations. >> up from prior expectations. >> right. >> you know, in the past it has often been your benefit was the loss for some of your competitors. but that doesn't seem to be the case. is it simply more reflective of a stronger economy, or particularly, as you just said, the enterprise? in fact, kind of adding adding demand? yes, it's some of both. you know, we are growing. >> in the business sector. >> the business.

>> sector itself is growing. so that's good. but there's definitely share taking happening there. >> and then the share. >> taking is ongoing in the consumer space. >> it's not accelerating. we just keep taking share every quarter, quarter after quarter for years, but at a pretty predictable pace. and so it's just a great model. and the bottom line is people want a better 5g network and they want a. great deal. and we have. >> structural advantages. >> that allow us. >> to just continue offering both of those things. >> now, mike, great to see you as always. last time i spoke with you in san francisco personally, you said to me, you know what apple's doing well, and everyone else was saying apple's doing badly. that was about 100 points ago. on page eight of your deck, you say a higher average revenue per device sold that that net of promotions primarily driven by an increase in the high end phone mix. is it once again better than people think at apple, or is it as downbeat as all the street? >> this is like an sat test on

page eight of my deck. >> i love it. yeah, well, yeah, yeah. >> listen, i signaled to you that we were experiencing, you know. strong sales of the iphone. >> and then you. saw that. >> in our numbers today. so it's just. >> totally consistent. people are buying premium phones. >> from us. >> you saw. >> our upgrade rates. >> smooth out for the first time in a long time. >> our upgrade. >> rates tend to be lower than our peers. >> that's good. >> for our financials. >> but they smoothed out and. we saw it sort of pick up. pick back up this quarter. i think. >> overall it's a very healthy. >> trend okay. there's an outfit called new street research. candidly i'm not that familiar with them. but they did propose a couple of scenarios today. t-mobile charter hard on antitrust thinking that you will buy that. there's talk about you merging with comcast. talk about things that you can't talk about whatsoever. and yet and yet there i am. >> we're here to break news today. are we jim. go ahead. listen, we laid out at our capital markets day. >> an ambition for fiber. >> and you. >> know, one of the. >> things that has. >> always made our business great. >> is that. >> it's a simple business. we try to make it simple. >> fiber is a simple business as

well. >> so it's a natural. >> place for us to. be pure play fiber. you know, we're never going to rule out. >> anything here. >> we're here to create value. but we showed a. >> little bit of our. >> hand. >> in terms of at least. >> where our bias is. >> right. well, and you're going to be spending a decent amount of capital towards fiber, you know, what are you seeing in the early stages here in terms of the rollout? well, first of. >> all. >> you know. our transactions. >> should close soon. >> so we. >> you know, we have engaged in transactions along. >> with kkr. >> and eqt to buy the assets called lumo. >> lumos, metronet. those are tracking. >> really nicely. >> so we. >> expect to close those transactions. >> and then you know you expect to close those sorry. this year you know. >> probably by summer. >> fixed wireless continues to be something that has moved along perhaps more for a longer pace of time than we'd anticipated. is it longer than even you'd anticipated? you know, we laid all this out years ago. >> we said by now we would be, you know, trending towards 7 to 8 million homes. that's by the end of this year. we're right on track for that. and then we

recently updated our outlook to be sized at about 12 million customers by 2028, just because. >> of the strict capacity constraint, though i thought ultimately in particular areas that, you know, it was going to run out of steam. yeah, we that we were able. to address that with advanced technologies. >> with new cpus, with smarter capital allocation. >> and so. >> we were able to move it up from 7 to 8 as the terminal size to 12 million. and look, we'll keep we'll keep working on that. >> i mean. >> 5g capacity is rapidly expanding. >> you know. >> our typical broadband user. >> is experiencing. >> three times the speed today than in 2021 when we made this offer popular. >> that's a faster. >> rate of speed. >> growth than wireline. >> has seen over the. >> past three years. >> at about 80 to 100%. >> so, you know, just. >> kind of shows. >> you that this. >> is really coming up the curve quickly. and remember, it's an excess capacity model. we don't. dedicate capital to it. we only approve applicants for fixed wireless where we know our

capacity will be intact for years to come by virtue of the mobile investments. >> when you. >> think about. >> what is motivating. >> the consumer. >> right now. >> you mentioned fast network. >> do you think. >> consumers want that more than, say, a gen i feature? because a lot of the downgrades of the phone makers we've seen lately hints at a consumer that's not. >> that. >> impressed with those things so far. >> well, you. >> know, one of the things it's almost a. >> cliche at this point. >> people have been saying about ai for a while that in the end, it's going to be bigger than anybody expect. and the journey on the way there will be lumpier than people expect. and you're seeing all that, you know, but, you know, these use cases are going to create enormous demand on networks, and that will only further showcase the capacity differentiation that t-mobile has with multiples of our competitors speed and capacity. in certain areas where the we're the fastest in 46 out of 50 states in this country, and that's a. >> proxy for capacity. and so. >> you know, i will only further shine a light. it's a little lumpy, but it will shine a light

on this important area of differentiation for our business. >> i have spacex i watch what musk has done. >> starlink. >> you have starlink, starlink. but there's a, you know. yeah, okay. i'm starting one of the things that i'm concerned about. if everybody adopts starlink, won't the latency be terrible? >> well. >> one of the things that makes it different is it's low earth orbit satellites. and so the latency is pretty good. i am so excited. we're in a long term partnership with starlink and spacex to bring satellite connectivity directly to people's mobile phones, and we unveiled this two years ago, almost three years ago now, and we're finally off to the races. so we began letting people in our beta quietly over the past couple of weeks. we're going to expand that beta rapidly, probably in a couple of big moments coming up and then be commercial, you know, very shortly. >> so people he didn't have to pay anything for his spectrum. he had to pay a fortune for yours. it seems sort of asymmetric. they launched they've launched. >> over 400 satellites so far on

the. >> way. >> to several hundred, in order to make this service work. so everybody's invested in this. >> partnership. >> and the result is going to be a totally differentiated experience. >> you know. >> of everything i've ever announced across almost 13 years. >> in this business. >> the biggest response was the response to this idea, coverage above and beyond that we're doing with starlink, that if you can see the sky, you're connected. that is so powerful. >> how are we going to use that? i mean, when is that going to come into play? >> it's going to save lives. if you're if you fall in one of the 500,000mi■!s of this country whe none of the of the major providers have cellular service and wilderness areas, parks, lonely country roads, disaster areas. you know, during. >> the wildfires. >> just over the past couple of weeks, we turned on that service, even though it's still beta on an emergency basis, hundreds of thousands of text messages and emergency alerts were delivered to people, even in affected areas where the cell towers of all the providers had

burned down. >> even better, i have starlink, starlink in italy. okay. and the reason i got that was we had bad latency. it's half the price. well, yours be half the price. well. >> you know, there's a lot of demand for this in the us. >> and so will yours be. half the price. >> i can't speak for how they price their. >> products, but. >> i can tell you that for us, you can expect that in our most sort of value packed plans, it's going to be included. >> mike, real quickly, stargate, softbank, a big participant. we talked so often about softbank ownership of arm, but they still own a lot of your stock as well. any thoughts that masa son might be a seller? >> i saw him last week in tokyo. we had a great catch up. you know look they've been with us for a long time. and remember, they've had the ability to sell shares for a long time. only 18 million of those 85 million shares are tied up in agreements. right. and they haven't so far. they're big believer. you know, masa has been extremely successful when nobody thought he would be. and that with that investment in

sprint. and you know that has turned out to be a major moneymaker for them. they're big believers in our strategy. but beyond that i can't speak to his intentions. >> all right. always appreciate it. mike. thank you. good to see you. goodbye. mike sievert, ceo of t-mobile. >> as we go to break watch bonds. of course, not a lot of data today. aside from from some wholesale retail inventories earlier this morning. but of course the fed decision at two. >> and the. >> presser at 230, ten years just about four and a half. stay with us. >> the bond report is brought to you by pimco, a global leader in active fixed income.

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fantastic. they've got a really good margarita for very little price. >> 10.99 we were. >> looking for 17% comps. >> we got 31.4% comp. >> this is kevin hoffman. sometimes you just need a genius at the top. and we have one in chili's, also known as brinker symbol. eat, jim. >> we'll see you tonight. >> very busy day. >> you're going to have a lot. >> to play with. lots of. and we just we just played with a lot right now. >> by the way relatively steady open here s&p down 12. we all know things can get squirrely on fed day. >> stay with us. >> how's the. >> quarter coming along kate. >> what do you think your name. >> is kate. and hates. >> when people. >> correct him. >> pretty great. >> define pretty great. >> we added. koopas i powered total spend management platform. so we're finding new efficiencies and multiplying margins. >> so you can mind your. >> business so you can mind your business. >> no, that's not what i meant.

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for you? >> it's not. >> just about the ticket sales. it's maintaining that connectivity with her fans. >> the power of a fan base. >> she's built this billion dollar brand. >> she's able to do that in a pretty unique way. >> the swift effect, part two tonight, ten eastern. cnbc. how do you see wealth money in the bank, precious commodities. find financial clarity with cnbc's trusted resources. keep your future in focus. cnbc live ambitiously. >> good wednesday morning. welcome to another hour of squawk on the street. i'm sara eisen with carl quintanilla and david faber. live, as always from post nine of the new york stock exchange. take a look. >> at. >> stocks here in the early going. we're down on the s&p 500 about 2/10 of a percent. so nothing extreme like we saw earlier in the week. >> nasdaq down half a percent.

>> giving back some of yesterday's gains. the dow remains higher by 51 points. it's all about the bond market today. it's fed day. and we've seen this follow through on buying of bonds. yields lower. >> 4.5 on the. >> ten year two year just below 4.2. we'll talk about what to expect from the fed meeting in. just a bit. >> meantime it's a very. >> big morning on capitol hill. >> senate finance. >> kicks off their confirmation. >> hearing for robert. >> f kennedy jr to become secretary of health and human services. and president trump's commerce secretary. pick howard lutnick testifies before the senate commerce. science and transportation at his hearing. we're going to bring you the headlines. >> as they. >> happen later this hour. >> particularly watching those pharma and food stocks. we are 30 minutes here into the session. here are three big movers we're watching. t-mobile gaining. >> beating estimates thanks to. >> continued growth in wireless subscribers and home internet customers. stocks up 8.5%. starbucks also in the green. despite a sales decline, many on the. >> street calling. >> the numbers better than feared, with more than eight firms. >> raising their. >> price.

>> targets on the. name this morning. more highlights. >> from the ceo in just a bit. and then watch big tech today with microsoft. >> meta and tesla. >> all set to report. >> results in just a few hours. more on. >> the big seven names coming up. >> but guys, it's a bad day and not a lot of drama expected. in today's fed announcement, the fed is expected to pause for the first time since september after about 100 basis points of cuts that started. >> in september. >> the question going into today. >> that i have and that i think. >> investors have. >> is. >> is march on the. >> table right? >> the market. is upping the odds of a march rate cut. you don't get one fully priced. in until june and then another one in december. >> but all. >> the turmoil. >> in the market around deep sea. >> and the potentially. >> deflationary implications. >> of that. >> along with the fact that we've heard the bias. >> from several. >> fed members over the last few weeks. >> that they're still kind of in cutting. >> mode, even. >> if the market. >> has moved on. we also saw progress on the last cpi report on inflation. >> all of that. >> adding up to the fact that we're going to get a pause.

>> but how. >> likely is fed chair powell going. >> to signal that he's ready to cut sooner rather. >> than later? and i think the biggest question. >> hanging over everything. >> is tariffs. what do they look like. and will they be inflationary. >> we've heard from a. number of fed. >> policymakers over the past few weeks. on how they view tariffs. and this is really going to be key to determining the. >> fed's policy. i don't. >> expect powell to be able to say anything definitive today. but okay, here's the saint. >> louis. fed president. >> will it be a one and done or will it be two years. >> of sequential, a sequence. >> of tariffs in many different sectors of the economy? if it's over two years, incrementally, every month or every two months, it gets harder. >> to parse out. and then remember what. >> fed governor waller told us. >> he doesn't. he's not. >> too worried about him. >> listen. >> i don't think tariffs are going to have. a significant. impact or, you know, persistent. >> effect on inflation. >> but we'll just. >> have. >> to wait. >> and see. >> what. >> actually happens. >> and the last. >> one i just showed. >> kashkari minneapolis. the challenge becomes if there's.

>> a tit for tat and. >> one country imposing tariffs and then responses. and it's escalating. that's where it becomes more concerning. and frankly. >> a lot more uncertain. >> we just don't know. >> we don't know. >> even the president of mexico. >> sheinbaum is. >> on the tape saying she does not think we'll get tariffs at least on february. >> 1st. >> which is when. >> the president. suggested might. >> be a self-imposed deadline. >> meantime, the dovish voices like. >> waller. there is this parlor game that. >> maybe they're trying to curry some favor with the president who wants the fed to cut. >> i know as soon as people start getting dovish, everyone says, oh, they're political. >> they want the fed. >> look, you know, i'd like to. >> think that the fed. >> the fed folks are above that. >> right. >> and they're looking purely at the economics of that. you know, waller, the. >> change was interesting. the fact that he came on. >> this show two weeks ago saying. >> i'm looking for cuts, multiple cuts. >> as. >> many as. >> four this year. i'm looking for. >> cuts in the first half of the year. >> if we continue to see inflation. >> he's got an economic case. >> we've seen now after. >> six. >> months of sort of stagnant

progress of inflation, it's starting to starting to happen. yes, we. >> got a. >> very strong labor. >> report last month. >> but a lot of that could have been give back from. >> the storm. >> so let's see where the fed chair stacks up on all this. not willing to go on the political argument just yet, although i know fed chair powell has got to be prepared for these attacks from from attacks or questions. >> from the. >> president and the executive branch. >> on making policy. >> just since the last meeting. >> president trump has ramped. >> it up. >> we'll get ecb tomorrow. and we just had bank. >> of canada. >> cut 25 as expected. >> ending. everybody's in a weaker economic position than the us. and so they have more ability to cut. and they're also considered on the losing side of the tariff. front especially in europe. that's why the ecb is expected to cut more than the fed. it's not for the right reasons, though. it's because their economy is in worse shape and because they're expected to get hit. by tariffs. >> yeah, germany just cut their gdp forecast for the year from one 1 to 3 tenths. >> yeah i mean look you know we always do this on fed day. we show how it's affecting you.

>> how it's affecting. >> consumers and homebuyers and purchase. purchasers of automobiles. >> they're still pretty. >> high rates out there. david i know you like this one. so we go back to the first before the first rate hike back in march 2022, when you were paying 4.29. and that was elevated because there were expectations of a rate hike coming on a mortgage. guess what? >> we're back up to above 7%. >> on the housing market, that's. >> for sure. look at home equity. >> loans elevated at eight and a. >> half credit card. >> you feel this if you're late on your. >> credit cards. >> and used cars, new car rates still high. so for the fed to make a case that they're still in easing mode. >> you know, look. >> at what's happening. people are still feeling these high rates and they want to preserve this economic recovery. so that's that's going to be in the background. the question is how much is already baked in. let's get more on the fed potential move in rates and how it may play out in the market. our next guest is in. >> charge of. >> corporate credit at goldman sachs. advising america's biggest companies on their multi-billion dollar financings.

jonny fine is here. goldman sachs. >> global. >> head of investment grade debt. >> welcome. >> good morning. thanks for having me. >> what do you expect? >> no change. i think that the outlook is simply too uncertain from a government policy perspective. i think if i'm chair powell today, then given the data has been fairly benign as of. >> late, i'm. >> in no hurry to do anything. and given the mosaic of potential policy outcomes that could drive inflation and growth over the next several weeks and months, if i'm a betting man, i'm going to say he's going to take a watching brief, see how this develops and see what the impacts are. >> right? i mean, i highlighted tariffs as one of the big wild cards on inflation. bond market is trading tariffs as inflationary. >> correct. >> is that right? >> i don't. >> think so. >> i think there's many other things in this mosaic that are going to be more important than tariffs. tariffs tend to occupy a lot of column inches a lot of chat in the market overall a lot of airtime. >> but overall. >> i'm not so sure that we should be as focused on tariffs as a risk as perhaps the market

is. and the reason for that is that firstly, it's a one and done as opposed to a continuous bleed through into. >> we. don't know exactly. >> right. >> likely it's a one and done. >> either way it's. >> a step function as opposed to a. demand excess demand driven level of inflation. additionally, the impacts on the foreign exchange market generally mean that the dollar will strengthen as a function of tariffs being imposed, which itself is tightening from a financial conditions perspective. and ultimately demand is reduced with higher prices anyway, which then questions how much of this tariff actually is passed on in terms of increased prices. so all of these things together, for me, i think the tariff fear is overblown. if i'm the market. i'd be more focused on the other elements of policy making, including impacts on the fiscal outlook and on the labor market as well. >> labor market being, deportations and the like. >> yeah, i. >> think it's deportations.

>> and i think it's probably also the fear of deportations as well, because i think that probably stops those that are here on an unauthorized basis showing up for work. and it makes employers nervous to have those employees show up to work as well. >> you remember around about. >> 4% by estimates of the labor force in the united states is unauthorized. around 20% of that workforce is in the construction market, about 10% in food services, about 10% in other kind of low skilled service areas of the economy. so if we start to see an absence of workers in that aspect of the economy, then sure, wage price inflation, i think, starts to become very much on the front burner. >> so are you bond bullish or bearish? >> i am actually bond bullish. i think that certainly when we're at 480 a couple of weeks ago, i think the market was pricing to worst on all of these factors, pricing to worst. on the fiscal outlook. we were talking about

treasury auctions and treasury supply and whether or not the incoming treasury secretary, scott bessent, would change the mix of funding instruments from treasury. we'll find out more about that next week. we were concerned about that embedded in even higher term premium in the long end than we had seen prior. bear in mind, we saw term premiums at that point hit 65 basis points in ten year treasuries. that's the highest level in a decade. i think they were pricing a lot of these outcomes to worst. and what makes me more bullish is that as i think that we understand more about how these policy initiatives are going to unfold, some of them will be to the market's worst expectations. many of them will not. and so as a result, i suspect that yields will come modestly lower as the year plays out. >> we did hear from bessent last week where he said failure to. extend the tcja. would result in an economic calamity. in his words, does the bond market agree with him? >> it's one of those things where there's so many things within the plumbing of the

financial system that are potentially calamitous but are very, very easily fixed very, very quickly. that i don't think that the bond market is going to kind of create a lot of issues with respect to challenges in the repo market, challenges in commercial paper markets overall. that's not in anyone's interest. it's not in the fed's interest. so i'd expect that to be addressed pretty quickly. >> jonny, some sorry excuse me. something i keep an eye on acquisition financing. it moves out of your investment grade area more into high yield, but spreads are very tight. so even though rates are high, spreads are very tight. and so high yield financing still may be not bad in terms of, you know, is that going to continue in your opinion? >> so it's actually. >> a fixture not only in the. >> leveraged finance markets, but it is a big fixture in the investment. >> grade market as well. >> as well. decent backlog in ig. there's a couple more that have been on the tape this morning. i would expect that to continue to be a fixture. and you're. >> right. even with elevated. >> input costs in terms of cost

of capital, i think companies that we speak to around the world, whether. >> they. >> be ig rated or high yield rated, are finding investment options either in their own businesses or they're finding acquisition opportunities external to their business so attractive that the numbers still work, even with those higher input cost of capital. >> all right johnny, thank you. >> for the update. always good to have you. especially on a fed day. >> great to see you. thanks for. >> having me. from goldman sachs as we head to break. here's our roadmap for the rest of the hour. that rate announcement due at 2 p.m. eastern from the fed. >> many expecting. >> a pause. we'll help get you ready. >> plus, we've got another downgrade for apple this morning. that's, of course, ahead of the company's earnings tomorrow. we're going to speak with the analyst behind that call. >> and it's going. >> to be a busy evening. >> tesla microsoft. >> and meta. >> reporting earnings after the bell. we'll talk about what you need to know and what the street is saying as the s&p is holding is saying as the s&p is holding 60 over 50. don't go away. top line? this is a quality, comprehensive exam. come again?

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check out my new samsung galaxy s25 ultra. it's got galaxy ai. imagine this thing running on our superfast xfinity mobile network. and i also heard that it can do multiple things with a single command. —with google gemini. let me try it. add recipes with overripe bananas to my “dessert ideas” note. that's what you chose to ask it? i had other things planned. ask how to get up to one thousand dollars off the new samsung galaxy s25 ultra with xfinity mobile. >> that's my. >> secret to better odor. >> control everywhere. doug emhoff quick. >> check on tech stocks. the tech select sector spider fund, ticker xlk, within inches of. >> new all time. >> highs after the sector's best day since july. that said, a mixed story for. >> its top. >> three holdings year to date apple and nvidia firmly in the red. now, though. >> microsoft is holding. >> on to its gains. we're going to get new numbers from microsoft and meta after the bell, and then apple tomorrow. >> feels a lot more. >> high stakes. >> for these numbers to come out. >> for sure. definitely.

>> on the capex. sarah's right. tesla tonight. after the bell as well. our next guest says the company. has plenty of growth opportunities ahead to keep him. positive on. >> the stock. >> let's bring in canaccord genuity analyst jorge enriquez has a buy rating and a 404 target. george, always good to talk to you. thanks for the time this morning. >> thanks for having. >> me, carl. >> i bet. >> a lot. >> of whispers about buy. >> side estimates on growth being. >> closer to ten than. >> 20, and some. >> expectations that. >> musk. >> will. >> have to. >> address that somehow tonight. >> absolutely. so there are a few key things that we're watching. first, like you mentioned, 20. >> to. >> 30% growth in deliveries. >> let's see. >> if they'll. >> do that. >> but we will. >> say that the new. >> model y looks spectacular. and they have promised a couple new models. obviously margins are really important. but the sneaky, really interesting. >> thing. >> that we're looking for is elon musk's thoughts on deep tech and what that means for tesla's massive investment in data centers and nvidia chips. and it's really also as a part

of that category, very, very important. our fsd take rates full self driving. how many people are opting to buy. the ai software, the autonomous software that tesla is offering. >> and i assume. you believe that this rerating in the cost element. of all. >> of. >> that is positive is bullish for the industry, for tech at large, and for tesla in particular. >> it's really important to your point. but we would argue actually, what's even more important than. >> the power and. >> the gpus. >> needed to build ai. >> infrastructure is the ultimate viability. >> of the. >> ai business. models that are, in theory, geared to justify the dollars being allocated to power them. you know, like tesla has voraciously been consuming nvidia chips and is the leader in real world ai. but we would argue that fsd take rates are a really good proxy on the broader success of ai business models. and so far, those fsd take rates

are okay, you know, not great. and we are very bullish on autonomy long term, to be clear. but if you recall the downfall of many communications related stocks in. 2000 was largely due to the fact of businesses failing to justify the significant capex they were building out. so it's really important to know not only how much they're investing, but how viable the business models are. and fsd is an ai business. >> but but the investing does it. >> have you changed your models or the way you thought. >> about think about. >> capex and what this company has to spend and what their margin profile looks like going forward because. >> of this development? >> not yet. i mean, we're a little bit skeptical of all the claims that deep sea has made, as are others. you know, first of all, we don't know exactly what models that we're using underneath the surface, i.e, you know, chatgpt. so we'll wait and see until the dust clears. but we continue to believe strongly that you need a lot of gpus to power them and a lot of power.

you know, we cover a lot of power related stocks as well, and we haven't changed our thesis there. >> finally, george. >> i mean, it's. >> no secret. >> musk is being talked about. a lot. we're looking. >> at his. >> approval ratings. we're looking at his. >> political activity. >> both here. and in germany. is it even worth having that discussion if in fact, the valuation on the stock is when it comes to autos, at least the consumer response is not the most important factor. >> well, look, you know, my mom. always taught me not to talk about politics and religion at work. so i'll stop there. but but i will say that, you know, we have to see an improvement in u.s. and european order rates for tesla. china really carried. the day in 2024. it was really, really good growth there. and we'll see. ultimately, what will consumer approval be of the new vehicles. you know, the new model y, like i said, looks spectacular. allegedly some of the order rates are through the roof. and what else does elon musk and tesla have to deliver in terms of new models? they've

promised some new exciting stuff that are lower cost in 2025. and we'll see. i'm certainly excited to see them. >> all right george. >> appreciate it. >> do we even know if he's on the. >> call for sure. >> i was i'm assuming he is. we're going to hear. >> from. >> him tonight george. any reason to. >> doubt it? >> he said once that he wouldn't be coming on conference calls anymore. that was a couple of years ago, but he continues to be on there. i doubt that he won't be. >> jorge henriques, canaccord. >> thank you. >> it does have some other stuff going on. busy man. speaking of tech, keep an. >> eye on. >> the cloud stocks today. f5 networks popping higher after smashing estimates with double digit revenue growth for its software business. that stock up 9% after the break. more on a different name gaining post results. starbucks should you believe the turnaround story and where are we in that in that process we're going to discuss next? >> etf spotlight is sponsored by >> etf spotlight is sponsored by state stre ♪♪ ♪♪

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all starts and ends with them. i think this testament of 90% promote within has really resonated with our teams. and then also the idea of making sure that we simplify the process, bring order to mobile order. you know, the third thing we said we were going to do is obviously bring back the idea of a coffee house vibe. >> starbucks chief brian niccol. >> with us last. >> hour talking. >> about. >> the turnaround plans for the company as they reported a top and a bottom. >> line beat. >> same store sales did decline for the fourth straight quarter. down four was a little bit. better than the down 5.4. we were looking for. >> down seven in the quarter before that. i mean, baby steps was the word that niccol used, and that's how the analysts are viewing the quarter. but they're optimistic that there was enough progress. it is like reading trump's executive orders to go through some of the changes that they're making. they're making a lot of changes to some of the highlights. they're reducing food and beverage 30% to try to sort of speed up service and improve service and simplify the menu. they've stopped charging up charging for nondairy milks, for instance, to try to bring back customers, especially those

that are not on the loyalty program. david, they're doing a lot of things, and it's adding up to, i guess, better declines than expected. >> so far, lesser declines to get everything to about four minutes. but it does. you know, i did ask a question about margins because it does appear they're going to need potentially more staffing. i mean, he's working through a lot of things, sarah, and it's clear the turnaround is going to take time. but investors seem to be willing to give them that time right now. >> because of his track record. i think at chipotle and. >> the fact that he's come. >> on now and he's talking about some of those those changes, i thought it was also notable that he the vote of confidence he gave in china, because part of the thesis is that they would look at separating the chinese business. he didn't sound like that's where he was going. he called it a gem. echoing cramer, as long as they don't get rid of the pink drink, this is my kid's favorite. they have this huge market in in children who make their parents pay for very expensive drinks after school because they all need sugar. and the pink drink is very popular. >> pink drink? is that what it's called?

>> it's like. >> i don't know if it's on the menu or not, but it's called the pink drink. yes. it's strawberry. >> it doesn't have any dye in. >> it, does it? >> no, there's rfk jr. i don't. >> know. >> i don't know what's in there, honestly. >> we're also keeping an eye on shares of t-mobile, another ceo that joined us as well. they're up sharply. you can see that right right there. earnings cash flow free cash flow. subscriber additions. more or less every metric you looked at was strong. we did speak with ceo mike sievert specifically about where they're seeing that strength and whether it can continue in 2025. >> the consumer for our business is firing on all cylinders. but business is starting to come up and contribute way more as well. and so you don't have a soft spot looking across top 100 consumer markets, smaller markets in rural areas and then now across multiple segments in business. and they're all contributing. so we went ahead and guided our highest postpaid net additions for the start of the year ever. and we moved our service revenue expectations up

from prior expectations. >> it's been a lot of success for this company over now a significant amount of time. you can see what the stock has done over the last five years. and if you wanted to compare it to the likes of a verizon or an at&t or even our parent company, comcast, it would be a sharply different picture as they have been aggressive in terms of rolling out fixed wireless. they have been adding numerous wireless customers over a long period of time. they're now getting aggressive in terms of fiber. it's about to close a couple of acquisitions later this year that will give them presence there. and also even in a partnership with starlink, which we also talked a bit about, that will give people the opportunity to use their phones in rural or remote areas when they have emergencies and things like that. he even said they beta tested and actually turned on during the wildfires in la, when people were not able to connect to their to the network. >> it's interesting, as you might have thought, that they would be competitors with the starlink, but now that they're partnering. >> you know. >> just when you don't think a telecom company can move 8% and

grow in a saturated us phone market, this company continues. >> to surprise. >> and by the way, it's not been taking it at the expense of the others. i mean, at&t shares are up 8% this year. they had a very strong response to that quarter. even verizon doing fairly well. >> meantime, a big afternoon in store for us. >> this with. >> the markets. another decision on rates of course the presser with chair powell. blockbuster results from tesla, meta and microsoft tonight. as we're holding on to some gains on the dow. but the s&p still circling 6049. back in a moment. >> good morning everyone. >> ready for. >> the big meeting. >> i have. >> to write this. >> project plan. >> i just need. >> to reply. >> to. >> 40 emails linda. >> oh their day disappeared. too many. >> emails. >> messages, docs. >> that's why i have grammarly. it's ai that helps me write faster and better everywhere. it just cleared it for the. >> whole company.

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nate jones... lines things up... checks his fidelity app... looks to outside analysts to get a second opinion. nate likes what he sees... and he places the trade... talk about easier investing. strikes next. so go on, check it out. it's over at for patriots.com. >> we take you to senate finance, where there's already been some. heckling in response to rfk jr's opening statement. let's listen to some q&a. >> for example. >> you have a. >> history of trying. >> to take. >> vaccines away from people. in may of 2021, you petitioned the food. >> and. >> drug. >> administration to not only.

block americans. >> from having. access to. >> the covid vaccine. but to. prevent any. future access to the life saving vaccine. >> are you denying that. your name. is on the petition. we brought that petition after the cdc recommended. >> the covid. >> vaccine without any scientific basis, or six year. old children. most experts. >> agree today. >> even the people who did it back then at covid vaccines are inappropriate for six year old children who basically have a zero risk of covid. that's why i brought that lawsuit. i don't want to i want to emphasize. >> kennedy the facts. >> don't. >> the facts. >> the committee. >> will be heard. and to the audience.

>> on capitol hill for a. >> second, mr. kennedy. to the audience, comments from the audience are. inappropriate and out of order. and if there are any further disruptions, the committee will recess until the police can restore order. please follow the rules of the committee. mr. kennedy, you may proceed. >> i also want to point out that your recitation of what happened in samoa is absolutely wrong, and you know it's wrong and you know it's wrong. >> we'll get to that. in a moment. >> right now we're talking about the. petition that you. filed to. >> block americans from. >> having access. >> to the vaccine and to prevent any future access. >> to. >> the vaccine. >> those facts are on the record. >> my third question. >> to you is you made. >> almost $5. >> million. >> from book. >> deals, mostly. promoting junk. >> science in 2021. in a book. >> called the. measles book. >> you wrote that parents had. >> been. >> quote, misled into. >> believing that.

>> measles is a deadly. >> disease and that measles. >> vaccines are necessary. >> safe and effective. >> the reality. is measles are. >> in. >> fact deadly and highly contagious. something that. >> you should have. learned after. your lies contributed. >> to the deaths of 83 people, most of them. >> children. >> in a measles. >> outbreak in samoa. so my. >> question here is. >> mr. kennedy, is. >> measles deadly. >> yes or no? >> the death rate from measles historically in this country in 1963, the. year before the introduction of the vaccine. was 1 in 10,000. let me explain what happened in samoa and samoa. in 2017 or 2015. there were two kids who died following. >> the mmr. >> vaccine. >> and. >> the vaccination rates in samoa dropped precipitously. >> from. >> about 63% to the mid 30s. so they've never been very high. and in 2018, two more kids died

following the mmr vaccine and the government in samoa banned the mmr vaccine. i arrived. >> a year later. >> when vaccination rates were already below the below any any previous level. i went there nothing to do with vaccines. i went there to introduce a medical informatics system with digitalized records in samoa, and make health delivery much more efficient. i never gave any public statement about vaccines. you cannot find a single samoan who will say, i didn't get a vaccine because of bobby kennedy. i went in june of 2019. the measles outbreak started in august of. clearly i had nothing to do with the measles. not only that, mr. kennedy, senator, not only that, if you let me finish, you have. >> had some time. >> if you let me finish, senator, if you let me finish, there are. 83 people died when the tissue samples were sent to

new zealand. not most of those people did not have measles. we don't know what was killing them. the same outbreak occurred in tonga and fiji and no extra people died. there were seven measles outbreaks in the 13 years prior to my arrival. i would like to. >> get my. >> time back. >> the nominee. wrote a. >> book saying. >> that people had been misled. >> into believing that measles is a deadly disease. >> he's trying now to play down his. >> role in samoa. that's not what. >> the parents say. >> that's not what governor. >> green says. >> it's time to make sure that. >> we blow the. >> whistle on actually. what your views are. >> at least. >> we're starting. >> we need to move on. i support the measles vaccine. i support the polio vaccine. i will do nothing. as hhs secretary, that makes it difficult or discourages people from taking it. anybody who believes that. >> on a look at the measles. >> book you wrote. saying parents have been misled into. >> believing that measles is a deadly disease. >> that's not true. >> we need to move on,

>> senator grassley. >> welcome. i'm going to do like i did in my office. i'm just going to make some points to you. i got about seven. i want to quickly get done. and then at the end, i'm going to ask if you disagree. with anything i say and then address those things you. disagree with. i'll make sure i save time for you to do that. a key responsibility of each member of congress is oversight. oversight allows us to hold bureaucrats accountable to the rule of law, and it helps keep faith with taxpayers. i expect hhs to provide timely and complete responses to congressional oversight. number two, pbms, something you and i. >> just want to give you a taste there of the spiciness of this confirmation hearing. rfk jr before the senate finance committee, democrats hammering him over previous remarks against vaccines. you did just

say hear him say as hhs secretary, if i'm confirmed, i will not go against the measles vaccine, which was one of the questions that democrats had. we're going to continue to monitor, of course, keep you abreast of any news from the rfk hearing. we've also got to talk about the upcoming fed decision and earnings results from three of the magnificent seven names all coming this afternoon tesla, meta, microsoft, steve kovac and julia boorstin here with more on what investors should be watching out for. steve, we'll start with you. >> yeah. sara, the dynamics of this microsoft. >> earnings report. >> has just really changed in the last week or so. we found out last week with that stargate announcement that microsoft is no longer that exclusive cloud partner for open ai. and that stargate project is really where. >> a lot of the. resources are. >> going to go. at the same time. deep sync is kind of raising all these new questions about these ai capital expenditures that. >> have. been under. >> scrutiny from investors since probably last summer, since they talked about not just microsoft, but google and so many others,

talked. >> about the enormous. >> amounts of money that they're planning to spend. and then today, we got another wrinkle in the story with openai saying that they probably suspect that some of this deep sea stuff was actually trained on openai, using the openai apis in an improper way against the policy there. so that is still being played out as well. >> and but. >> the numbers still remain here. the fiscal year 2025 capex for microsoft, $80 billion, they are sticking with that. that's the number that they plan to spend through. >> the end of. >> their fiscal year in july. and then the numbers to watch for are. the azure growth. the previous quarter, azure had grown 33%, and 12% of that came from artificial intelligence. openai is a big part of that. of course, we're going to be looking for what that number is today. and also moving forward, if the growth rate will continue to accelerate, especially for ai processes, and then openai, those losses that openai is suffering, continues to suffer

to hurt microsoft too. they are expecting $1.5 billion hit to income this quarter. sara. >> steve, appreciate that. >> we're going to be talking a lot today. meantime, meta is also set to report this afternoon with ai and deep seek sure to loom large. our julia boorstin is here to talk about what might be important. certainly capex guidance or at least a reiteration of it will be interesting. julia. >> that's right. carl i its costs, its payoffs and the future of open source will be the key factors driving meta's results and also its stock after earnings today. now meta shares are up 67% in the past year and up about 8% in the past week. it's a rare mega-cap tech stock that has benefited from the surprise explosion of deep seek. its success is seen as validating meta's open source approach to ai, and because meta is seen as a key beneficiary fishery of ai, both in terms of its ad business and also its consumer chatbot. now ceo mark zuckerberg just last week, preannouncing the company's 2025 capex outlook, saying it will be

60 to $65 billion in capex spending as it builds its ai infrastructure. so now, analysts are hopeful that deep seeks lower costs, will eventually spell savings for meta jmp, with a buy on the stock saying with ai becoming more efficient, it is increasingly likely that 2025 is meta's peak ai capex year as it digests its ai investments from the last few years. so the question is how meta's ai investments are paying off this quarter, while earnings per share are projected to grow 27% from the year earlier quarter, revenue growth is expected to slow to 17% this quarter, down from 19% last quarter, and is projected to continue to slow to 14% next quarter. so we'll see whether those ai tools, plus monetization of messenger and whatsapp and ads coming to threads can rev up growth guys. >> all right julia, meanwhile, the stock has had a very nice run even this year, even despite the bit of a decline today, up almost 15% so far, just a few

hours away from another fed decision. steve liesman is in washington, d.c. of course, he's getting ready for the big news conference. steve, any expectations here beyond what we sort of already kind of seem to know? >> well, i think things are changing as we speak, david, dramatic announcements from the trump administration in just the past 24 hours when it comes to federal workers and spending, have underscored the fed's expected decision to pause and wait for greater clarity before considering additional rate cuts. the fed has already had to weigh the effects of potential tariffs, tax cuts, deregulation and deportations. now it's got to fold in into the mix a potential decline in government spending. some portion of 2 million federal workers looking for jobs unclear about any of that. the federal workforce census at postal workers, it's 15% of all jobs out there in 2023. federal spending, defense and medicare, they were 12% of gdp. potential major changes to both. it's got to figure into the fed's thinking about the macro economy. so keys to the

fed outlook today will be whether the fed chair and the federal reserve itself affirms this direction of rates still being down, expresses confidence that inflation, they think, is still headed to the 2% target. and of course, powell will do his fiscal policy dance around questions from journalists he does not want to answer. in that context, president trump's recent demand that the fed lower interest rates, maybe the least. the fed chair powell is concerns he can ignore that what he and the fed can't ignore is what might be coming from the trump administration in the next couple of months, trying to figure out what it all means could come in the next couple of days or the next couple of hour. real quick, guys, the gdp now that fed gdp now just went down to 2.3% from 3.2%, in part because of that big trade number we had this morning, which is likely people bringing things into the country before potential tariffs take effect. carl. >> yeah, i thought it was a misprint. >> at first. >> that's an interesting. >> interesting revision, steve. >> thanks a lot. >> busy day. >> steve liesman. >> a lot more. >> squawk on the street after this. don't go away.

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>> welcome back. we continue to get a stream of headlines out of washington, dc overnight, including some of the confusion as well around that federal funding freeze. eamon javers keeping track of it all. what do we got eamon. >> good morning david. >> the white. >> house says they. >> expect 5 to 10% of the. federal workforce to accept their offer for what they're calling a deferred resignation. they say that could save the taxpayers as much as $100 billion annually over the long term. the deal on the table is if you resign by next week as a federal employee, you can collect full pay and benefits and retain your pension until september 30th, even though you will do no work. >> the new. >> department of government efficiency posted this. >> morning that. >> employees, quote, can take the vacation you always wanted, or just watch movies and chill. while receiving your full government. pay and benefits. that comes as the white house is beginning to fill in the details of an abrupt federal payment freeze that went into effect

yesterday. officials here now say this is not a blanket stop work order. >> instead. >> it's an effort to identify and eliminate programs. >> that are not. >> politically correct in. >> the maga. >> era, such as diversity efforts or efforts around transgender issues. now, all of that coming as press. secretary caroline leavitt. >> says, the. >> deadline of this saturday still holds for potential. new tariffs on china, canada and mexico. so we'll be watching for the details today on how that might roll out. david, and just one other detail here, that those medicaid portals, payment portals that shut down yesterday, the white house said they were aware of that and that those portals were now going to be up and running. so they seem to have gotten some of the kinks out of that federal funding freeze overnight. guys. >> back over to you. you know, eamon, whether it's the funding freeze or the buyout offer to federal employees, i think there is some question here in terms of the presidential authority or whether it exists to do those things or whether it's congress's place, what do we know and what do we expect in

terms of how that ends up? well. >> i think there's going to be a lot of litigation around this. >> first and. >> foremost, david. >> and i can tell you, i just spoke with alina habba, the presidential adviser here, former trump attorney. she said, you know, she's not working on this directly, but they're confident inside the building that they have this pretty well buttoned up in terms of the lawyers. >> the role. >> that omb is playing, the. >> role that the office. >> of personnel management is playing, they feel like what they're doing here is going to withstand legal scrutiny. nonetheless. >> it is. >> going to come under scrutiny. there are going to be lawsuits filed. there have been already. and more of that is to come. so this will be fought out in the courts over time. a federal judge yesterday putting a stay on that spending freeze until monday, so they can work out some of the logistics on the lawsuits here. >> that. >> are expected. to be in process already. >> and. >> more to come. >> what what departments will get affected by this most? and for the democrats that are calling out, you know, access to services that americans rely on,

is there truth to that? >> well. >> the administration is saying so far that no direct benefits to individuals in the united states will be affected by this. they're simply looking to target programs that they feel are not in line with the president's agenda. like i said, that's diversity, equity and inclusion efforts. that's things around oil and gas that was spelled out in. >> the. >> memo that they. >> sent to. >> federal employees, transgender issues. >> all of that. >> will not be affected in terms of the overall or all that will be affected. >> in terms of the overall. >> approach with the federal workforce. they don't really know, sarah, how many people. >> are going to accept this? >> they think between 5 and. >> 10%. >> but it's a blanket offer. and if they get a bigger share of the federal. workforce accepting it than they expected, you know, that could have a problem on their hands in terms of operating the. government over the long run. they seem confident, though, that you can call a significant number of. >> federal employees. >> without damaging efforts to run the federal government. >> so interesting and of course, very similar to the fork in the

road memo that elon musk sent to twitter employees right when he when he first took control of that company. yeah. >> elon's fingerprints are all. >> over this one, too. >> and we saw the doge committee, the new department of governmental efficiency, putting out a statement on social media today. offering frequently asked questions. >> to federal employees about this. so clearly. >> elon's doge is right at the center of this effort to cut. >> the federal workforce. >> by a dramatic amount. >> okay, eamon. thank you, eamon javers in dc for us. apple is set to report earnings tomorrow afternoon. shares have been underperforming the broader tech sector at least so far this year down about 6%. and a number of analysts seem to be losing their appetite for the stock. our next guest is the latest in what has been a string of downgrades for the name, saying he's going to a hold on a weaker outlook, slower replacement. china's share loss. oppenheimer analyst martin yang joins us now. yeah, martin, no shortage of analysts who share your opinion and have done so over the last few weeks. you know, why was this in your in

your sense, the right time still to downgrade based on overall demand for the iphone? >> i think. >> incrementally what. >> we saw. >> last week, the, the dramatic shifts and. >> performance improvement. >> deep sea can ai. applications like that. make us more. >> convinced that. >> apple intelligence is not going to be a major driver for a. >> new iphone cycle? >> things are shifting so fast. >> and then. >> the consumer app for ai is. very fragmented. so apple. intelligence doesn't have what it takes to. >> lift iphone replacement. >> in the upcoming 12 to 18. >> month view. >> martin, i want to put you on hold for a second if i can, because we've been monitoring the hearing with rfk jr and we want to go back to it. as the questioning continues. >> mr. mr. kennedy, and. my final question, did you say. on a podcast, and i quote, i wouldn't leave it abortion to

the states. my belief is we should leave it. >> to the woman. >> we shouldn't have. >> the government involved. >> even if it's full term. >> did you. >> say that, mr. kennedy? >> senator, i believe that every abortion is a tragedy. >> did you say it. mr. kennedy? this matters. it doesn't matter what you. >> come here. >> and say. that isn't true. that's not reflective of. >> what you really believe. >> that. >> you haven't said over a decade after decade. after decade. >> because unlike other. >> jobs where confirming around this place. this is a job where. >> it is life and death. for the kids that i used. >> to work. >> for in the denver public schools and for families all over this. country that are suffering from living in the richest country of the world, that can't deliver basic health care and basic mental health care to them. it's too important for the games that you're playing. mr. kennedy, and i hope my colleagues will say to the president, i have no influence.

i hope my colleagues will say to the president, out of 330 million americans, we can do better than this. >> thank you. we need to move on. senator cassidy. >> mr. kennedy. >> president trump has. sworn to. >> protect medicare. >> republicans are exploring reforms to medicaid that could help pay. >> for trump administration priorities. with this. >> context, what will you do about. dual eligibles? >> about dual eligibles? >> well, dual. eligibles are not right now served very well under the system. those are people who are eligible for both medicaid and medicare. >> and, you. >> know. the i suppose. >> my answer to. >> that is to make sure that the. all right. we will continue to monitor that confirmation

hearing, of course, for rfk jr. martin, want to come back to you apologize for that interruption. you know, you were talking about apple intelligence and not a particularly positive way. what is it that you feel like it's lacking that therefore consumers are simply not interested necessarily in upgrading to get ahold of it? >> yeah, it's a combination of two things. one, on. >> the capabilities they. >> showcase. as of june last year. >> in today's. >> sense seems to be outdated. and then there are also. >> reports on during. >> the beta testing. or currently. one feature, such as the summarization. >> of. news headlines. are not performing. >> or to expectations, making errors in. >> headlines and then. >> making errors in the summarization. >> of the whole articles. so i think those things are small. things accumulate together will.

>> lead to a pretty. >> pretty big disappointment when. >> it comes to open, open access of apple intelligence. >> but would the multiple have to move down to for you to be interested in having it as a buy again? >> i think multiple have to be down. >> another. >> 20% for me to get. >> more interested. >> okay, martin. thank you. no, it was short, but appreciate you taking some time. martin yang from oppenheimer. of course, we are keeping an eye on shares of apple and so many of the other companies that we've already discussed this morning in terms of earnings coming not just from apple, but meta as well, which has been a very strong performer, although down today. should note nvidia shares after a rebound yesterday from, of course, monday's historic sell off are down again and not insignificantly nvidia down about 4.7% as the market continues to grapple with the implications of deep sea, not to mention alibaba's latest model, which it says actually exceeds the performance of deep seat's

latest model and just the entrance overall of the chinese into a market that they were thought to be lagging in given their lack of access to the chips that seemingly are behind it all. a lot more on that on the broader markets as well. when money movers. >> comes. >> your way right after this. >> bitcoin is the best. >> performing asset. >> but its volatility has kept many on the sidelines until now. introducing the world's. >> first 100%. >> downside protected. >> bitcoin etf capture. bitcoin's upside potential. >> while staying protected. asset management. at a time of disruptive change. calamos ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000

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analysis and the latest on ai spending john fort, morgan brennan closing bell overtime today for eastern. cnbc. >> good morning again. welcome to money movers i'm sara eisen with carl quintanilla live on the floor of the new york stock exchange today. while the headlines so far this week have been focused on deep sea. the focus today turns to the federal reserve as they get set to announce their interest rate decision. the big question how will the central bank navigate a new fiscal environment under the new administration? we're going to dig into that. >> plus another player in. >> the ai. >> race, alibaba, this time touting its new model, saying it surpasses. >> deep seek. >> we'll look at how fierce the competition could get here and the one sector that could benefit the most as the race heats. >> up and the ceo of teva is with us, the stock getting hit pretty hard as guidance comes in weaker than expected. we're going to talk pricing for drugs, demand for weight loss and whether the new administration coul