donkey. you mean a smart? >> find an advisor at smart asset.com. >> all right, folks, that does it for us today. make sure you join us right back here next week. have a great weekend. squawk on the street begins right now. >> good friday 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. stocks look to close out the month of january with a gain maybe to all time highs, while also bracing for the possibility of tariffs. this weekend. pce was broadly in line with that 12 month headline does rise to 2.8. our roadmap begins with apple's bounce today. shares are rallying after a positive sales outlook, signaling an iphone recovery. >> plus trump's tariff deadline. >> the president has confirmed he will impose 25% tariffs on imports from mexico and canada.

that could start tomorrow, and the fda greenlights a non-opioid painkiller. in fact, jim's been talking about this for a long time. it's the first of a new kind of pain medicine in decades. we will be joined by the ceo of the company. we're talking about, vertex pharma. that'll be this hour. >> let's begin with apple rising on this quarterly beat in revenue guide that despite an iphone sales, that number that was amiss hurt by a slump in china, services revenue was a bright spot, hitting a record high. jim wedbush today says try. it's like trying to tackle saquon. the bears miss again. >> you can put eight up front. it doesn't seem to matter. i do think that the best news i felt was that where they had their apple intelligence, their ai sales are up now. they don't have it yet in china. they might. they need a partner in china. we know that china while huawei they could have partners. they could they could use the deep sea for all we know. but it does matter that that when they have ai things go better. because then you can you don't

have to guide down the next, next quarter or two. and people felt that the big issue would be the forecast cut. there was no forecast cut. david. this installed base 1.38 billion users. and you know, it's just a phone users 2.35 active devices. this is what everyone knows is their ace in the hole. and everybody keeps the hedge funds. keep thinking what's the next iteration of the phone doing? and tim cook is thinking, we have a lot of people who will buy more of our things, whether it be service or whether it be the different parts that we all know that mac, whether they the earbuds, you know, by the way, the watch is crushing it. >> the watch. >> is crushing it. >> yeah. >> doing well. yeah. health care, health care, health care. and i think this goes listen, by the way, you you know, you've been talking about the fact that when the stock when we kept getting downgrade after downgrade, you were you were right. and it would seem at least based on this performance

right now. and we'll see how it performs that, that those were of no great value in terms of determining the future of where the stock was going. ben. right. >> so you're on the -1.7 on the watch. i, i, i'm regarding the watch. it watches high high gross margins. but it's health but anything health is doing well. >> but you're saying it's doing well. but the numbers. >> they're saying it's bad but i don't i when i talk to tim cook it was not at all clear that it was bad. >> the down number was not bad. >> yeah. i'm saying that's the one everyone's worried about. right. and tim cook is not saying that's bad. okay. he's saying the health care is very. >> strong, but the number is the number. >> well the data is the data. >> what it does appear the case is i mean, and this is quoting they have levers in their gross margins and services as a result of the huge installed base. right. so they can move things around. >> yeah. >> and kind of figure it out. they can raise price. >> he asked a very tough question. but yeah, you know and tim cook has got i mean is he teflon. is he is he saquon. i think what he is he's got the

best product. and i still think it's the best product win situation. and it's. >> an expensive product though jim. and people may be holding onto it longer as a result. >> well he did say that. he did say that. well, i was trying to get tim cook to say in our interview that i did with steve kovacs that isn't it true that we're no longer just going new, you know, new line, new line, new line and judging it, and that we're actually blurring it by having these constant updates that you get overnight. and he said, no, no, they're still going to be it still matters tremendously. the 16 matters the family of 16 matters. so there was nothing revelatory other than the fact that it was fine and everyone expected it to be not fine. and that, i think, is because i is a spur to buy more. but but to buy more phones and that no one thought that i think people just felt their eye is so, so. but it's not. it's i of course, they're not paying for. so it's really a free ride. that's fabulous. gross margins were up nicely. >> as of yesterday. i think we

had 22 downward eps revisions over the past three months. i guess you would expect that to reverse. >> i think that there's too many people who they have to do it quietly. they look too stupid, right? >> but it's not like the multiples come in here, jim. >> oh, no. i mean. >> talking about the stock being expensive, we're talking about minimal over, you know, year over year growth of any kind. right. okay. and you are still banking on an ai upgrade cycle. you're talking that. all right people, maybe it's doing better i don't know. but it hasn't brought a wave of upgrades yet. >> no. but when i look at microsoft i say do i want to be in microsoft where i don't get upside? or do i want to be at apple where i sense i can make a curve which just says, this service stream could really explode and india is going to be gigantic. >> and the 17 is coming, i guess, and it's potentially a newer iteration. >> but i think, look, he's talking about in terms of about india, i mean, india is a real factor. i'm not saying that

china is not he's never going to say that. but i think that let's say right now it came out that baidu, let's just say that i don't know anything, but baidu has teamed up with apple for the best ai. then the people who are still shorted are betting against it, are going to say, all right, i've had enough. and then then i think that the negative guys will have to come out right now. they can say, you know what, it's still got a very high multiple. it's 30 multiple. and that's really not what you get when you have this little growth. they say pretty much what this man to the left says. >> yeah. well i mean it has held people back. >> how long does it have to be high before we just say, you know what, maybe it's better than clorox. maybe it's better than colgate, maybe it's better than hershey. >> right now, it's got a higher multiple than nvidia. >> well, nvidia. >> i would think nvidia has a bit of a higher growth rate. >> well, well let's see what happens when judge huang meets with president trump today. >> yeah i don't know that that's going to change the growth rate of nvidia.

>> but well i mean maybe they're going to get rid of the friend not friend rules that biden put in at the last hour where there was no consultation whatsoever with jen-hsun huang, who, by the way, is one of america's greatest companies. but you don't just you don't like on a saturday night, do that. >> no. although the response to deep seek has been interesting, some say actually, it's a sign that we should be even tighter on the chip supply as opposed. >> in fact. and there's some wire stories this morning about some pressing the white house to be tougher, at least on nvidia. >> there are. i think that the white house is actually a little less hard line than people think. i think that the white house wants to hear the white house is trying to figure out, did they get did did deep sea get 100,000 high end chips. >> or singapore or. >> wherever they i put i posted yesterday on x. absolutely not that there's just no evidence whatsoever, according to nvidia, that they've diverted into singapore. i think they're in a jam. if they say, look, the reason why deep seat really they they had access to 100,000.

that's it's not like they, they made. okay. i got an analogy for you. all right. so you have a juicer that can make ten glasses of orange juice out of an apple of an orange. an apple. incredible. that's what jensen is doing. ten glasses. that's a mistake. they can make ten glasses of orange juice out of one. okay. and in. or you can make you have ten juicers and you just get one glass. so do you really need to pay for ten juicers. you can just buy deep six. >> understood. >> right. and that's the worry. >> that is the worry. listen, i think there are any number of people now have weighed in saying the efficiencies they were able to come up with the techniques they used, whether it's reinforcement learning or this mixture of experts, things that are certainly are software engineers are well aware of and have used, but that they did a good job and that they did plow new ground. that said, they also kind of a lot of people have weighed in now on the cost differential and saying it really is not large between

models here and the model, what they were able to do. and ultimately, i think many believe that chip demand will be on unchanged. >> i agree. well, okay. >> so here's over any over any meaningful period of time. but we'll see. now on the chip front, i mean, again, the guy who runs anthropic came out with a piece, i think it was earlier this week. i read it saying we got to be even tougher on china. we cannot let them be our equal. and that's another thing that we do understand from deep sea. >> although jesse's post last night by deep sea ga1 now available on aws. >> unbelievable. i'm most closely concerned that when amazon reports they say, you know what, we are going to slow nvidia or we're going to go to amd, which they're not using for this kind of thing, i think they're going to stay with their friendly relationship with with jensen. but it's that's what the bears are telling me. okay. so here's uses that deep sea can't do okay. that you can do on blackwell. all right. multi multi modal memory spatial

intelligence physical actuation vision and touch. so those are the things that you need blackwell for that. well that's. >> all robots or robotics right. >> well yeah. >> yes but that matters tremendously. >> yeah. they're not going to be able to do it for that. right. so unless they get the highest end. >> chips right. so i mean look you want it to play jeopardy i don't want it to play. i don't want it to be it plays a great game of checkers. but nvidia is a grand master. >> kasparov in chess, not checkers. yes, yes. >> chess grandmaster. >> yes. >> nvidia's grand master. and the president is going to like him. and i think they're going to come out and he's going to say, whatever is good for nvidia is good for america. >> meantime, jim, this deep sea sell off got filled largely thanks to retail traders this week. some argue that's a sign of resilience in the overall market. >> well, i do know i've been trying to pay attention to the myriad etfs and zero zero day

that are in control of the stock. >> yeah. >> and now that's just i mean, i think those are the people i urge those people to, to take the two points and the eagles because that's much more rigorous than whatever the hell they're doing. i think jason robins, a draft king, he runs a better operation. these clowns who are doing this stuff, what. >> are. >> they doing now? you're sounding like the elliott letter that these we got sports bettors trading stocks. >> i thought the letter was brilliant. a good, good piece in the ft about it today. yeah. i thought the letter was i am 100% in with singer on this. yeah we got to i mean look they let this happen because everybody wants to make a lot of money. that's it is a bad thing. it is just. it is bad gambling. it's like gambling on the line itself. i bet the line is going to go from 2 to 1. i bet that if i that if i create a new line, i'm going to do even better. that's what these people are doing. and they should just go to draftkings and have more fun and lose less

money because they don't know whether nvidia's a hand cream or a chip. >> i believe you, i believe you. i'm looking at probably some young people right behind us here who probably do are actually, i was in a cohort. >> i was in a bar last week. person to the right said, i bought nvidia because you a person on the left said i bought nvidia because of you. i said, anybody know what nvidia does? and they said, yeah, it's something that you recommend. >> that's meanwhile guys, i mean the fervor is not just in the public markets. you know, openai, whether it ends up being 30 billion or 40 billion or more. and softbank obviously, which is going to commit to this primary offering of some kind between 15 and 25 billion. the numbers are extraordinary. they are they are extraordinary. we've never seen anything like it. i can't remember. there's never been a public company that raised $40 billion if they get there. at one time alibaba went public here i think it was 25 billion. the biggest ipo, one of the biggest ipos of all time. >> well, what and your point is.

>> that they went openai earlier this week on deep sea was like worthless. and now it's worth 300 billion. >> i was just being like you. it is without a doubt a time not of inflation but of a recognition. this is why i like nvidia. it's a recognition that it is a new industrial revolution, and anybody who's in it is worth a lot more than the people that aren't. look, i'm sure that when you were when they discovered the cotton gin and you're a weaver, you're saying, you know what, that's ridiculous. what? >> no, i'm not making faces. >> of the cotton. >> gin making faces at our executive producer. let's let's. i don't limit my faces just. >> to you. steam engine. remember the steam engine? are you still, like, in the wheel? and the pulley? you and the wedge. you're the. >> wedge, robert fulton. >> he's shocking. >> the wedge. eli whitney in the cotton. >> eli whitney is cotton gin. robert fulton was the steam engine. >> yeah. good. >> he's buried right here. i walk by them all the time. >> who's buried in grant's tomb? there you go. >> jim mentions this meeting with the white house and nvidia

today. for more on that, let's get to our seema mody. hey, seema. >> hey, carl. we can confirm her sources familiar that nvidia ceo jensen huang will be meeting with president trump today at the white house sometime this afternoon. the meeting was set up a couple of weeks ago. the goal really being for these two leaders to get to know one another. topics we are told are going to be including ai policy generally not related specifically to deep sea, but i was told no doubt deep sea will come up in the discussion around u.s. restrictions on chip sales to china, which of course, is one of the big open questions following the deep sea tech revelations. and this chinese app being able to run on older, cheaper nvidia gpus. the other topic up for discussion is the onshoring of chip production in the us. at a time where us chip makers, as we know, are heavily reliant on taiwan guys. so we are watching shares of nvidia here in premarket trade. >> seema will be monitoring that with your help today. seema mody. so many more earnings movers to get to this morning including chevron and exxon both ceos on squawk earlier today.

plus the fda approving this non-opioid painkiller for the first time in decades. it's made by vertex stocks moving higher. we'll talk to the ceo. we'll get to colgate and walgreens, intel to colgate and walgreens, intel team kla and dec in a minute. (♪♪) car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

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questions about this. that simply means that instead of two separate controllers communicating one with helicopters, one with airplanes, as is usually the case, they can be combined under one person. that's what was happening when the incident took place, but it's not deemed unsafe under faa guidelines. and finally, there are questions about airport congestion, specifically at reagan national. as you take a look at the runway maps, we've talked about this over the last 24 hours. there is so much helicopter traffic along the potomac that is the designated route. well, that's also where some aircraft come in when they land on runway 33, which is the short runway on the upper part there. and that's also the runway where the american airlines regional jet was coming in when the collision occurred. the congestion is not going away, guys, not just at reagan national, but at airports around this country. look at the number of people who were screened by the tsa last year. it was an all time high. and guess what? we're on pace for another all time

high in 2025. and this is the situation that the airlines, the airports and regulators are going to have to figure out at some point as you add more flights, which is there because of the demand, how do you do it and do it safely? so as you take a look at the airline stocks, we saw a little bit of pressure, just a little bit of pressure on american airlines yesterday. that's typically the case after an incident like this. but by the end of the day you really couldn't see anything. these stocks have had a heck of a year, really a heck of a last six months in terms of how investors look at them. and again, guys, we think we think we might get some information from the ntsb as they analyze the black box either later today or in the next day or two. >> all right, phil. axios today points out and you you hinted at this yesterday that the airport was designed to accommodate about 15 million passengers a year. it gets 25 million a year. yep. >> and look, they're landlocked.

it's not like you can say, well, build another runway. you can't. this is the issue with so many of these airports, these older airports, especially the ones that are close to the downtown area in cities around the country. they are landlocked. so you've got to deal with what you have in terms of those runways. that's why runway one at reagan national. busiest runway in this country, bar none. that's how many planes are taking off or landing on, you know, every day. >> phil, i look forward to more updates. thanks for the help all week long. of course. phil week long. of course. phil lebeau, squawk at&t has a new guarantee. because most things in business are not guaranteed. like a distraction-free work environment. -yeah,i'll circle back around. -get those steps in, kevin. your coworkers keeping things confidential. [phone ringing] oh, she's spilling all the tea. ♪♪ or office etiquette. yeah, that's not guaranteed. i know you can see me! you know what at&t guarantees? connectivity you depend on, the deals you want, and the service you deserve.

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>> we've been. >> navigating change for 125 years, always looking forward, anticipating risks, and trusted to manage over $1 trillion in assets worldwide. solving for the needs of investors today and tomorrow. that's the power of nuveen. >> the opening bell is brought to you by nuveen, a leader in income alternatives and responsible investing. >> all right. >> last opening bell of the week coming up. but we got enough time for a mad dash. last shares are going to be up sharply. >> symbol team i think that people look to enterprise software. when you think about that you think about salesforce

workday servicenow which stock was down yesterday. because because the federal business is going to be more back ended. well, this is collaboration software makes it so that you can collaborate better with your customers, collaborate better with your teammates. it really does work. i had them on a bunch of times. but i will tell you this, david, it's the beacon, the growth hounds in the market always want to have the high multiple rule of 40 kind of stocks. palantir. yep. right. which is i told you is going to 100 no matter what by hook or crook. but atlassian's is a really good company. and everybody i know who's on it, young people tend to be on it, and they're putting the older people at the office to shame because they work much faster with it. but it works. it's terrific. and it's going to allow people to buy enterprise software again, which had been down in the dumps after service. >> now it's interesting. it was a covid favorite as well. >> yes, it was. >> ran up to 450 bucks or so. if you go back five years you can see it, right? >> well. >> but unlike so many others, it's sort of at least regains a

good amount of that decline. >> in its. >> place since then. >> it's loved in the office and great guys, by the way. i had them on a bunch of times. and i will say this, david, their enterprise software is the lifeblood of so many different people versus, say, apple, they want to pay. they'll pay 30 times cash flow for these 50 times sales. you know, all that stuff. instead of what you were saying about apple. there's no discipline when it comes to these companies because people want high growth. and those those managers now have been given a green light to go back and buy all that stuff because of atlassian. >> interesting. >> they did. they thought they had the green light from servicenow. they didn't get it. >> no, no, that those shares were punished yesterday. >> they they were punished. >> they were punished. they were punished. >> hi, carl. >> hey, guys. >> how's it going? how are you doing over there? >> we discussed punishment. he's meting out punishment. i got to tell you, i want to be in that meeting so bad with the president. >> there's. >> there's still time, jim. still time. >> you know. >> but the biden administration seemed to. be to have a real

contempt for the companies that have done the most. and i have to believe that president trump will be the opposite. >> let's get the opening bell here in the cnbc real time exchange of the big board. it's brazilian water and waste management company sabesp. at the nasdaq. it's the leukemia and lymphoma society. as the fought a 20 round with a higher range of close to 6100. >> yeah. >> look, i think that there's a lot of stuff i was surprised there are a lot of areas yesterday. they were very, very good by the way servicenow left big off of that last night and people were very focused obviously on deep sea. but then there was a whole nother group of people who were saying, you know what, health care really back industrials. i'm looking at the industrials. there's some of the parker-hannifin. yesterday was really fabulous. i thought caterpillar shouldn't have been down as much. i think caterpillar had a good quarter. but retail's been very strong. williams-sonoma. rh where gary friedman bought a ton of stock

himself. caught a double. told you to buy it. really really terrific to see a cold shot that. >> was like a battleground stock rh. >> oh my god. goldman had a sell on it. they had to capitulate. yeah. wow. yeah they capitulated. very exciting time. if you just would walk away from the semis for five seconds disney. interesting piece. jp morgan says nothing good but keeps it as a buy, but at least quantifies what the fires have done. you know, i'm a big believer in disney going into the quarter. yeah i'll talk. >> about exxon versus chevron. i mean let's put up exxon versus chevron. >> i was. surprised that chevron missed this much. i like. >> chevron the differential in performance of the two stocks. if we can do that back in the control room while we talk about earnings from both. both ceos were on squawk box this morning. we of course talked to mike wirth only a few days ago as well about their partnership with ge renova to basically create natural gas fired power plant. power plants for data centers, essentially, but kind

of a mixed bag, tim. i mean, i. know a lot of return of capital. we keep talking about it. chevron shares are down, exxon is up. and there it is. >> chevron was an okay quarter. >> exxon has outperformed chevron substantially over the last five years. >> chevron has returned so much cash flow they got a really good dividend. they have got a good field in the old soviet union, so to speak. that's working. and i was out visiting their stuff in the gulf of america and it was doing quite well. >> well, what accounts for that differential in performance then? >> i think that people feel that exxon is it's kind of like they've got the rosy hue ever since engine one. it's almost like they're considered to be the fast moving darling that understands carbon capture. and because i've spent a lot of time with mike talking about this, with mike the ceo, because i think chevron is worth more than exxon. >> but i know you've been you've been very positive. >> i like it. i like the cash flow. i like the growth. i, i, the analysts just seem to put

numbers up that are too high for them to meet quarter after quarter, maybe. so i you know, it's almost like they have it in for chevron by making. >> it so easy on exxon back a couple of years back. and who knows. look at the look at the stock since. >> no, i'm just surprised i, i thought it would reverse i said that i'm wrong, but i know that you're not going to get hurt in it, but that's no reason to buy a stock. i understand. >> that cash flow from operating activities at exxon 12.2 billion, free cash flow is 8 billion. and again, you know, we are talking on both these about a return of capital. and then that continues to be that question in terms of production. right. we asked mike wirth about it earlier in the week because of course he was praising the trump administration significantly in their press release announcing that deal i just mentioned. but what about the 3 million additional barrels they want? he said, listen, we can do more with less is what we're said to us. >> deep seek. >> yeah. >> so that's the new theme. >> is echo right there. >> deep sea. can colgate do more with less? david. that's what i

want to know. yeah colgate forecast flat i was surprised colgate used to be able to set your clock on those guys. >> well they essentially guide in line. they see organic for the year up 3 to 5 streets at four and a half. yeah. right. >> disappointed i actually there there can't miss. procter has done the best i like the fact that kimberly initially people didn't like the kimberly-clark call. but if you want the boring stock that can do well in that group, it's shifting over to kimberly. i it had been mondelez, but the price of coke goes up too much. people don't like mondelez as much. >> yeah. downgraded today over at piper. yeah along with hershey. >> i thought that was hershey's just struggling. oh my god. >> but but the running theme through a lot of those names jim is the dollar. moeller talked about it in the procter call last week. it's actually a factor in the apple guidance too for at least for the. >> march quarter. it was one of the reasons why you back out the dollar. then you suddenly see some growth. you know, look, i'm i'm surprised that with the mondelez with some of these we stopped talking about gop one. and yet lilly is doing quite well. the stock has been going

up. i think there's a bunch of new use cases coming up. and there's more. well it's down today, but there's more money in the system. so you don't just get directed to wegovy by the doctors. >> yeah. also some headlines this week on ozempic and kidney disease. it's like every other week. right. >> well there's so many. i mean, when i spoke with david ricks as the ceo, the number of trials going on is shocking because it just seems to do so many different things that are good. i think that the prediabetes and pre-alzheimer's are going, going. the two that i'm focused on now, i was focused on the heavy drinking one. people don't talk about that. but but after we saw what the previous president's surgeon general was saying, which is the skull and crossbones on liquor. >> yeah. >> well, i mean, heavy drinking is going to be going to be something that you better get it under control. i think that look, i'm waiting for the humanities of the world to say, you know what? if you drink heavily, we're not going to. we don't want to cover you.

>> interesting. >> hard, hard to detect. >> a lot of self-reporting. >> and self-reporting on that. it's, you know. yeah. are you going to. >> i was in my car drinking a lot of jack daniels. were you? yeah, i used it for many purposes. i don't think it's just for drinking. >> no, of course not. it's a scary time for you. >> it's scary. i had a gun. >> you were a young man. >> i'm a gun. you always see these politicians. i had a gun. you're like, no, no, you used a gun so that when you're, like, living in your car, nobody does anything. >> to drink a jack daniels. >> yeah, no, like like i. yeah, i, i shot skeet. i have a favor of guns. >> i'm just glad you got through that and that you're here to tell us. >> about it. i never found the guy who told. >> me that was a scary time. >> took all my stuff. >> you know what else is a scary time? looking at comcast share price. not today, though. at least there's ever so slightly a rebound. yesterday was an ugly day. >> i took it off my screen for. >> our parent company. i took it off your screen. >> yes i did. >> but no real rebound after that 12% decline yesterday. of

course, as we told you many times, despite $15 billion in the buyback and a lot of free cash flow, although frankly flat but still a multiple to free cash flow, that's very low. the market is focused on broadband subs, and they went down even more than had been anticipated. you may wonder, though, why shares of charter, which reported earnings this morning and also had a significant decline in what they call total internet customers, down 177,000, is not similarly getting penalized. and that would seem to be in part because they are really adding a lot of mobile wireless customers. 529,000. they're basically a 10 million mobile lines, and they've added 2.1 million just in the last year. that's more than than comcast has in its mobile business. total domestic wireless lines for comcast i've got at 7.8 million. and as i just said, it seems to be about 9.9 million for charter. that may be one reason why that stock is actually performing better. it was down yesterday in

sympathy with our parent company stock, although not as much. and again, broadband is not a growth business. it's just not i know everybody talks about when the acp, this finally sort of plays out. this affordability connectivity plan that helped give money to people who couldn't necessarily afford broadband and then has been rolled back over time. but it's not a growth business. we've talked about it over and over again. can you continue to raise price? how much can you raise price. and then there's the video business. one reason we're getting spun out of course, at our parent company there was the loss of 311,000 video subscribers in the quarter. at charter, it was 123,000. so no real let up in people cutting the cord. carl. and obviously incumbent upon networks like our own to figure out different ways to grow revenue. >> it's the 491st or another way to look at it. it's the ninth lowest p e in the s&p 500. >> is comcast. yes ninth lowest.

>> yes. and the other eight are so terrible that i really struggle to be denied. i don't like to be in 451st place. >> yeah that's. >> not good. you don't make the playoffs. >> you don't want to be. >> that cheap. you're not in the playoffs, right? >> meanwhile, today, b of a, which had been a pretty stalwart defender of the stock finally gives in goes to goes to neutral. they were at 50 as a target jim down to 38. so but that's been a long time. they've been with the five handle as a target. >> i took it off my screen. >> you took it off your screen. >> i. >> have to tell you don't have to worry about it that for that much longer anyway because we are new co. >> i have a lot of. >> stock company without name. >> i have a lot of stock. i have a lot of ge stock and a lot of comcast stock. >> well, i'm glad you held the ge through the period of horribleness. >> larry culp okay. but when you get larry culp you do not turn into the 491st lowest peak. >> so are you hoping larry culp

takes over comcast is that. >> no, i'm just talking about a man i. >> welcome it. >> i think talking about a person who's a who's one of the greatest ceos ever created. >> larry culp has created an enormous amount of wealth. and it was i related many times, conversations i would have with people at 30 rock, for example, asking me when ge was really on its knees saying, what do i do with this stock? and there were a lot of people they held on a lot of thankful people. given the spin off, what's helped you put health care together with bornova and with ge, and you get a number that is not quite the all time highs, but it's certainly respectable. >> the humility of the man is shocking. i mean i said, listen this ge but what are you kidding me? he goes, no, i want you to stick with me. it'll be fine. but if you're worried, i understand. i mean his he carries himself like andy reid. you know, having met coach reid a lot, he has not a single bone of he's not ebullient about himself. he is not arrogant

about himself. he is just simply a real good guy. you like him too, i know. >> of course i do. yeah. >> i want people at home to. >> know i respect. >> people able. to accomplish. is he an arrogant guy? he's created so much value. >> guys, real quick, just to mention a stock i've been covering of late, which is walgreens. i've been covering it in part because of course, the continued conversation, which i sort of kind of ended earlier, i think it was early this week about a potential takeover. they cut the dividend to. yeah, to suboptimal to zero. >> by buy situation. hey, by the way tim wentworth, it's quite it's quite. >> i know you keep saying that but. >> the. >> stock just keeps going down. >> no i did not talk about the stock. i'm talking about the man. >> i know you like him, but it's. >> a tough environment. i like him. >> yeah. >> great. >> you had you did have high hopes for him didn't. >> didn't you? >> yes i did. have they been extinguished? >> no yes i did. no yes yes i did. that was. >> have you taken it off your list of things you're watching. >> your screens about to get a lot shorter.

>> my screen says triple venti cappuccino with skim wet. that's the only thing my screen. >> you know, we've gotten to him when he does this. oh. >> well, that's because you got me. you got me. >> i well. >> he does that. or when he gets really quiet, you know it's. >> not good. >> no bad things. do you know that the 491st, the other eight, the other nine companies. >> i don't. >> want to know. the other nine companies have no earnings whatsoever. >> oh, that's not. >> the company. >> by contrast, shares of vertex are rallying today on the fda approval of this painkiller. our angelica peebles is here with the company ceo first on cnbc. morning, angelica. >> morning, carl. >> yeah, i'm really excited to introduce doctor reshma kewalramani. she is the ceo of vertex, like. >> you said. >> and reshma, thanks for joining us this morning. we've been talking about this for a long time. and i know that you're really excited about this, this drug journal and journal. excuse me. and, you know, there's this debate, though, about how much impact this drug can really have because it's more expensive than some of the other painkillers that are on the market. and it didn't show to be more expensive or more effective, excuse me

than an opioid. so where do you see this drug fitting in, and how are you going to get people to actually use it? >> good morning angela. >> it's really great to see you. it is a big day for patients, for society and for vertex. this drug journal is the first new class of. pain medicines. >> in more than 20 years. and what a class. >> of pain medicines it is. it only works on the peripheral system. the peripheral nervous system. that's to say it doesn't work in the brain. it doesn't work on those reward centers that lead to addiction. it is. >> a. >> non opioid. it has been shown to be effective. it's shown to be well tolerated. and this feature of it working in the peripheral nervous nervous system allows it to not have. addictive addictive potential. this is the kind of medicine we have been seeking to develop. and i think it's the kind of medicine society wants to be able to use for moderate to

severe acute pain. so it is a very important medicine. >> right. but how do you anticipate overcoming some of those concerns about how effective it is and also the cost. >> let's go to how effective it. >> is and then let's get. to cost. >> the issue with the opioid pain medicines is not lack of efficacy. they're actually very efficacious. the problem is safety concerns, tolerability concerns and the addictive potential. >> and then let's. get to cost. >> when we talk about the cost of opioids, it's not the cost of the prescription per se. those are cheap. unfortunately, the cost of opioids is to the patient, to their families and to society. there is this raging opioid epidemic that i know you and your colleagues have covered. 80 million americans, 80 million americans seek a prescription for acute pain. 40 million of those americans get a

prescription or an opioid when they come in with acute pain. and that's because we don't have many alternatives. when a patient comes in with moderate to severe acute pain, whether it's after a surgery or it's after a fall or a sprain or a sports injury. now we have this medicine that is safe, it's effective, and it doesn't have this addictive potential because of the mechanism of action. >> doctor kramer, when we had you on last, i had such great hopes and i thought that maybe it wouldn't happen. and so congratulations. i know this took a lot of perseverance when you speak with chris berner at bristol-myers, with benfield and schizophrenia, when we talked to you about this, are we talking about the possibility of a major public policy shift where the mayors of the country, the state, the governors of the country realize this is the way that we deal with with the transient problem, the homelessness problem, because these are the two ways of

addiction that have turned our country upside down. do you think that the people in washington understand how you could change the game? for millions of americans who live on streets or marginal because of opioid? >> i really do, jim. so there's two things to think about when you think about the problem with opioids in america. part of it is people who are unfortunately addicted by way of drugs that they are using in other formats. however, some of the opioid epidemic comes from the start with a prescription for a pain medicine. in fact, 85,000 people that we talked about from the 40 million who use opioids for acute pain, 85,000 people end up having what's called oud or opioid use disorder in that group of people who are getting prescription for opioids. now we have an alternative. that alternative is gymnastics. it's

a medicine that doesn't have this addictive potential. and i do think the administration at the city level, at the state level and at the federal level understand this deeply because they are feeling the ravages of the opioid epidemic in their communities. i'll give you one example. something called the no pain act has already passed congress december 2022. there are other measures being considered by state and federal governments. 15 states have already passed some amount of legislation to limit the use of opioids, and seven states have already put into place some important policies so that non opioids have at least parity access. these are important measures. >> and the bigger problem though of course is chronic pain. and that's something where we still really don't have good options. i know you're working there but it's been a little bit of a rocky road. so do you think that we'll see this drug used in

chronic pain and if so, when? >> yeah, it's an excellent question, angela. and you're right, we're still working on chronic pain. this approval today for gymnastics is for acute pain. our programs for peripheral neuropathic pain, particularly in diabetic peripheral neuropathy, are underway. it's in phase three development. and you're also right we have more work to do there. there is another significant number of patients that we want to help, that we seek to help that we believe we can help. but we're not there just yet. today is about acute pain. >> great. well, thanks so much for joining us today. doctor. reshma kewalramani from vertex. >> thank you a big deal very big deal for our country, angelica. >> thanks. angelica peebles, chicago pmi is out a couple of moments ago. let's get to rick santelli. hey, rick. >> hi, carl. indeed. this is a once again a very weak number. we were expecting 40 comes in at 39.5. so that might sound kind of close. but consider this. this is now the 14th in a row

under 50 and 28 out of the last 29 months. have been under 50 back to back under 40. so 39.5 follows 36.9. it's actually the highest since november when it was 40.2. interest rates moving down a bit. now granted chicago might not be the perfect stencil for manufacturing across the country, but it's just another nail in the manufacturing coffin as we continue to see some of these numbers, especially on the chicago pmi deteriorate. and currently at 450 and a ten, while we're down a dozen basis points on the week, back to you.

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>> even with this week's sell off of some power related names year to date, the winners continue to be constellation energy in the top spot. vistra is in there. you see ge we'll talk some more with the dow with some mild opening gains up 29. don't go anywhere. >> i'm tony steen, digital strategist at americaneagle.com. after kansas city steaks experienced declining traffic and conversion rates, they came to us primed for online growth. we solved digital challenges like this all the time by leveraging an omnichannel digital marketing strategy. kansas city steaks com attracted new customers and significantly increased roi for complete website and digital marketing solutions. go to americaneagle.com.

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>> earning season on cnbc takes you inside the numbers. and when the ceos have a big announcement, they come here first. >> a wild hour of earnings. >> earningrted today and see

your eligibility. >> for a copay as low as $0 at lifemd. com slash tv. >> every day. >> let's get a friday edition of stop trading with jim. >> until reported last night, i thought the cash flow was very good, better than i expected. i the first quarter is historically not a great quarter for intel. it will not be a great quarter, but i think that they're trying to stabilize the ship by talking about how they have enough cash to be able to go through, and there was no messianic message about intel. it was more of like, listen, we're going to get through this with good blocking and tackling. and it was refreshing. don't expect the stock to go up, but perhaps the trajectory will not be just straight down. >> meanwhile chip equipment this week today it's a kla. but all week long. >> well look taiwan semi actually taiwan semis really diverged from from nvidia big time and taiwan semis putting a lot of orders of the winners there. it's lam that's the one

you want. and then after that kla and then after that. >> it's interesting. yeah. made a move yesterday. we'll see you. see you tonight. >> let's hear jensen. yes i want to be there. i'm going to go down. >> are you going to go down? yeah, i'm gonna go down. you know, both of them. you get to sneak right in there. yeah, i. >> do know. >> both of them. just show up. we'll see you in the background. yeah, i'm. >> not going to say what zuckerberg said. i don't know if you caught zuckerberg's comments about the administration. >> was very bullish. yes, jim. >> mad money, 6 p.m. when we come back, chicago fed president goolsbee talks on pce rates and potential tariffs this weekend. don't go away. >> are you having a hard time growing your sales? is it tough getting new customers? try info free. com hot sales leads. you'll get unlimited sales leads, mailing lists, business profiles, personal search, email marketing and free crm. i got four new customers the first month. that's incredible. >> i can see all my prospects on my smartphone. with one click, i can make my sales calls from

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>> monday, the top 100 public companies ranked on issues of workplace ethical leadership and environmental responsibility. america's most just companies revealed who's in the top spot monday. squawk box six eastern, cnbc experience the power of cnbc pro. all new investing tools securely linked to your brokerage accounts. become a smarter investor with the power of cnbc pro, go to cnbc.com slash get pro now. >> good friday 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. stocks are higher on this final trading day of the week. look at the nasdaq. it's climbing back more than 1%. we're still lower

for the week. but trimming those losses, we're now down a quarter of a percent for the week on the nasdaq. s&p actually just turning positive on the week. so we've really climbed back from that meltdown around deep sea earlier this week. communication services leading the charge right now. consumer discretionary also sharply higher as the mega caps fight back. information technology health care and real estate. those are your positive sectors right now. broadcom. meta tesla google all leading. treasuries. there's the ten year yield continues to go a little bit lower. so there's buying hovering around that 4.5 level two year yield below 4.2. 30 minutes here into the trading session. here are some movers. we're watching shares of apple rallying on the back of its latest results. iphone sales fell, but gross margins hit a record as its services business keeps growing. more on the apple trade ahead on the show. keep an eye on big oil. chevron missing earnings estimates the company's refining business posting its first loss in four years. rival exxon beating estimates higher oil and gas production offsetting lower oil prices and

weaker refining refining margins stocks both lower. today, we're tracking a number of areas of the market that could be impacted by president trump's tariff threat. the automakers, especially the canadian dollar, also in focus as well. the loonie, as it's called, sitting at a five year low against the us dollar. there's strong dollar weak loonie. that's what we're going to talk about. tariffs because february 1st saturday that's the deadline. and president trump has indicated he's going to move forward with it 25% tariffs. we'll see if that actually happens. but here are the goods i decided to break down of what we americans buy from canada and mexico. so top imports from mexico. and this is why we watched the auto trade vehicles, auto parts electronics and appliances. a lot of the supply chain goes through mexico for us consumers. crude oil is on there as well. medical devices, beer on there from canada. crude oil is a big one. and that's why president trump has discussed this idea of whether they would give an

exemption to oil, because it is such a major import, and he wants lower oil prices, not higher oil prices. so he doesn't want to raise the cost vehicles on their gas, lumber, food and frozen food. okay. the food and beverage sector is highly exposed to tariffs on canada and mexico. listen to this. the two countries account for more than 40% of u.s. food and beverage imports. and david, some of these stats are amazing. 86% of imported u.s. tomatoes come from mexico. yeah, 86%. 83% of imported beer made from malt originates from mexico. 83% of cabbages, cauliflower, kohlrabi, kale, all the things i like, fresh or chilled come from mexico and don't even get into dates and avocados and figs. it's more than 70% of total u.s. imports come from mexico. >> of the production capacity for tomatoes to suddenly. no meet the domestic market, i wouldn't. >> i don't think so. unless

those farmers get really busy on. working on tomatoes. >> grow them. >> if their workers keep showing up. >> exactly. we also could have labor shortages on those. you know, in canada there's some stunning statistics as well. share of imports from canada of swine. live swine. >> yeah. >> to the u.s. 100%. that's according to evercore isi. >> wait, what? >> 100% of our live swine imports are from canada right now. >> everything. >> exactly. same with sheep. >> goats that we bring in. >> poultry, live chickens, ducks, geese, turkeys. >> but are those large numbers or not? i mean, they may not be large numbers in large. >> percentages of what we consume. i mean, that's the imports that we get. yeah. we make. >> no. >> no, but i'm saying us as well. >> right? i don't know what the numbers are though. it could be a very small number. >> it's we're not getting it from china. it means we're not getting it from. >> other places. they have enough pigs. >> we may have enough pigs. >> but i don't know. >> we do import a lot of pigs, which is a problem. you know, we don't import. >> we do. >> by the way. >> a lot of pigs.

>> we import pigs. there are no i mean, right, this is in the billions of dollars. it's not nothing. >> okay? i didn't know i don't know what the numbers are. >> but, you know, things there are things that we don't make as much here. and that's on the china front, you know, like baby carriages, baby carriages are almost exclusively made in china right now. and a lot of these toys and some of these electronics and so, so look, all i'm saying is that the consumer could feel this, like if companies don't absorb it in their margins or don't figure out ways to source from other places that aren't going to get tariffed like that typically does get passed on to the us consumer. >> well, we are getting this morning statements from trudeau, sheinbaum, even lula yesterday saying, come at us. we'll be we'll they'll be reciprocity. and then this interesting op ed in the journal today from phil graham and larry summers, which was brought to our attention this morning by steve liesman, who's here at post nine. history. yes. >> those two guys getting together, it's like oil and water mixing. but if sarah is telling me i don't care about the kale stuff, as you can tell by looking at me. >> kohlrabi. >> but if it's bacon going up,

there's a lot of people going to be very upset. >> including you, i guess. >> steve. well, i'm not going to say anything. but anyway, it says for more, let's bring in austan goolsbee. should i read that? >> yes. >> okay. let's bring in austan goolsbee. chicago fed president first on cnbc. austin, good morning. i want to start off with the easy question. what do you make of today's pce numbers the inflation numbers. do you are you confident that inflation is headed back towards target. and how high is that confidence of yours. >> well i'm liking this pce number. it was expected and it was even a little better than expected. i don't make too much of any one month. but you know, i've been saying that i felt like we are on path to 2%. i have comfort, i won't say overconfidence, but i have comfort that we're on that path, that if you break out the components of inflation, we finally started seeing sustained progress on housing inflation. we got services coming back to somewhere around where they were

pre-covid and on goods. we had a long standing trend before covid ever happened of actually mild deflation on goods. that's the part that's been a little overly firm in a couple of months. i think on net that's going the right way. now you add on top of it, we got this policy uncertainties that might affect prices. i'm i'm fine with rates coming down commensurate with inflation coming down. i always said, you know a year ago i was saying we're entering a phase where neutral is well below where we are hundreds of basis points. we cut 100 basis points off the rate, and now we let's slow down to feel our way to what is neutral and the uncertainty. it kind of adds to that feeling. >> i want to dig in a little bit more. what did you see that you said was better than expected?

it looks like this super core has been pretty good. i looked at the three and the six month. they look like they're coming down, but are you still focused on the year over year at 2.8 and stalling there as what's guiding your policy thinking? >> well, no, not mine. i've been critical of i shouldn't say critical. i'm skeptical of just looking at the 12 month number when we know that at the first quarter of last year, there was a big bump up. we have been making progress. the fact that if we keep getting numbers like what we just saw, the 12 month number is going to start plunging dramatically as we go into this first quarter. that's not a sign that inflation is falling. that's just a figment of how the thing is added up for 12 months. i mean, the three month and the six month numbers have been coming in pretty solidly. and just this month the expectation was 0.18% for the month. and it was a tad below

that. mostly it's just what was expected, and that's multiple months of solid performance coming in right around the 2% target. that's what we want. >> so last time you were on, you were telling us that you think that rates a year from now will be significantly lower. i think i have that right. >> i said 12 to 18 months. i still think that i still. >> still in that zone. >> and is that still in sight? >> irrespective, irregardless of what happens with tariffs and fiscal policy, or is that you're just making policy based on the inflation numbers and your outlook that does or doesn't include a fiscal policy change? >> well, yes and no. you know, a little of both on on that i think the, the, the predicate, the thing that is required for us to be able to get down to what i think and what is still the cep says is a neutral settling rate that is well below

where we are today, is that we've got to be totally sure that inflation is on this 2% path. it's been going well. we're still making progress. we've made a whole lot of progress. the job market to me looks like it's settled in around full employment equilibrium. and now we've got a lot of policy uncertainty that we do have. if it affects prices it affects us. i'm not weighing in on on what fiscal policy the congress and the president are going to choose to make. we just our signal is getting a little muddied when things are happening that are driving up prices. now, on a purely theoretical basis, if it were a one time increase in tariffs, that increased cost, but there was no retaliation and it wasn't lasting, that's supposed to, in theory, be a transitory increase in the inflation rate. and so it's not obvious that monetary

policy should react to it. but the difficulty we're going to have here in this near period is if collectively policy is going to be raising prices, we're going to have to figure out which part of the inflation is the part that monetary policy should look through and which part is a sign of the economy. but as i say, separate from that, just the underlying part of the economy to me looks like it's on a on an excellent path. and this is yet another indicator that our that our inflation, our fight to get back to a 2% inflation. we're still making progress on that. >> so hi, president goolsbee, it's sarah. are you in for a march cut or not? because i went into the fed meeting wondering about a march cut, and i didn't really get a good signal from fed chair powell. i know you've got still two cpi and two unemployment's until then, but is it your leaning that you'll be cutting again in march? at the next meeting? >> i just as you know and i

appreciate that you added that part. i don't like tying our hands when we got a lot of important data still coming through. we're trying to figure out this issue of the, let's call it the seasonality point that in the first quarter of many of the of the both last year and some of the years before, there was an uptick in inflation. and we're trying to figure out is that because seasonal adjustment i have no problem slowing our pace of cutting, feeling our way to wear neutral is as we get closer to neutral, that we already cut 100 basis points, i think is a is a good start. and now we're closer. so i believe the words that that chair powell used were we weren't in a we weren't in a rush to get to get it to neutral. and i understand and i kind of agree with that sentiment. let's see how this goes. >> yeah. well then that also raises the question is what is

neutral. and i know we always ask that and there's no real way of telling. and it doesn't sound like there's a consensus on the committee is there about what that destination is. >> yeah. not not a not a total consensus. you can see if you look at the dot plot that there is some disagreement, but the broad mass is still a fair bit below where we are today. so that's why i say, if you feel like we're continuing on this path of inflation coming down to 2%, then that to me, that opens a door for rates to be a fair bit lower than they are today. once we're 12 to 18 months into future. austin, there was a time when before you were a big muckety muck and we could sit around and talk about fabulously interesting economic ideas, and you're not in that position anymore. but let me appeal to that time. president trump has talked. >> about saying, my ideas aren't fabulous, steve. >> no, no, no, they're fabulous. it's just that you're more limited in what you can talk about. president trump has this idea of buying and creating a bitcoin reserve. as far as i can

tell, my knowledge of the us government administration is that if it does that, those reserves will lie on the books of the central bank, the federal reserve. now, christine lagarde yesterday was asked about this and she said, i think there's a view around the table that is the ecb table that reserves have to be liquid, that reserves have to be secured and have to be safe, that they should not be plagued by the suspicion of money laundering or other criminal activities. what is your opinion be of putting reserves of bitcoin on the book of the central bank? >> i don't know. look, i'm not a lawyer, but i think the what we what we the federal reserve system puts on the balance sheet is highly legally restricted. what what the fed is allowed to hold. and you've seen the fomc has made the statement that on the balance sheet, we're trying to get to 100% treasuries. so investing in anything we mostly

just follow the law of what's allowed. >> okay. let me just follow up with one last question on the issue of inflation. and where do you think it goes from here? what kind of progress do you feel like you're going to be able to make over what period of time? and i heard you answer sarah's question about march, but the market's priced. if you look at the probabilities for a june rate cut, possibly a second one by december. is the market in line with your thinking? president goolsbee? >> so you've got two different questions there. one is about rates and one is about inflation. where do i see inflation headed back to 2%? that's where i see inflation headed. if we keep getting numbers where we've gotten two a couple of months of numbers that are at or below 2%, if you look at our six month, eight months of inflation, we're coming right in around 2%, maybe slightly above two and a quarter. so i think we're getting to that. and if you look at inflation

expectations longer run expectations, they remain firmly anchored that the market believes we're going to be getting to 2%. so that's where i think we are now as i say, where there's a sarah highlighted, there's not total consensus on exactly where neutral is. and so as we're getting closer with the rates, i do think it makes sense to kind of slow down. there's a lag to monetary policy. so let's feel our way to what really is neutral. we don't want to overheat and we don't want to slow down. and there's a question mark that's coming from this, from the policy uncertainties. sarah highlighted the consumer impacts of tariffs. as you know out here, the chicago district is the heart of the midwest. we're like saudi arabia of the auto industry. when i'm talking to senior auto executives, they're very concerned about what tariffs might do to their prices or to their profit margins. and we do

have to work these through to before we can express confidence on on where we are on the underlying economy. i think. >> austin, thank you very much for joining us today. we really enjoy having you. >> great to see you again, steve. >> all right. >> here's my question. do i wonder where the committee is like he talks about he looks at today's pce and sees progress toward inflation. but you could also look at today's overall pce at 0.3% and say okay, well that's not as good as the 0.1% that it was in november. and it's still sticky and it's above target and we're still at 2.6, you know, on the annual. >> rate, the 12 month creeping higher for several months. right. can i. >> can i, can i be argumentative to a point of obnoxiousness. obnoxiousness. yeah. it was 0.26. yes. and the 0.12 to 0.26, it just barely rounded up to 0.3. but that is by the way, why i asked austin what did you see that was good in there? i think that if you look at the three month and the six month, it looked better. he is not dissuaded in his confidence that

we're headed back. >> i agree you can make that case. i'm just wondering where the rest of the committee is, if they're a little bit more worried about sticky inflation, are they with him or are they like wanting to see more progress? >> i think. >> it's different. >> look at bowman. bowman this morning talked about upside risks to inflation. she looks at those. that's why you have a committee. and that's why it's kind of a human call here. it's on the edge. but i think the important thing sara the questions that you asked in the context of inflation being above target, having these tariffs is something that makes the fed be more pause here is that it's not even a word be be more reluctant, more hesitant. and in terms of in terms of cutting because you want to see it work through the system. >> yeah that makes sense. >> and all things being equal, if it was 2% inflation and now the threat of tariffs, the fed might be cutting here. >> but there's also disagreement there. i mean, waller told us a few weeks ago he doesn't think tariffs are inflationary. >> and it may not be. and goolsbee held out that

possibility as well. and i think you and i and the rest of wall street will be talking about this issue, but maybe beginning tomorrow. what are you doing tomorrow? >> yeah. >> are you going to be at your computer looking for tariff. >> news if those tariffs are happening? yeah. although i think they take like a week to be implemented. >> once there there could be grace periods. we don't know. >> i have nothing better to do tomorrow afternoon than wait for the president to announce tariffs. >> the tariffs weekend. all right. >> thank you steve. >> as we head to break here's our road map for the rest of the hour including apple's quarter. shares are rallying despite that miss on iphone sales. >> plus nvidia ceo jensen huang is going to be meeting with president trump at the white house. that will be later today. we'll have a closer look at what may be on the agenda. >> and more on the potential impact of this tariff threat, how canada and mexico may be preparing to retaliate. mdx has erased the deep sea sell off, and the s&p would be at a closing high here. don't go closing high here. don't go away. top line? this is a quality, comprehensive exam. come again? you asked me to topline it for you. okay. bottom line? well, the bottom line is this is an amazing value.

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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. sale and make your dream office a reality. >> shares of apple higher iphone sales falling short, but profit margins hitting a record dan ives, wedbush securities global head of technology research, joins us now. buy rating on apple long time bull price target 325. what's your biggest takeaway? >> i mean, much better than feared. and i think if you if you go back to sort of the bear thesis, the skeptics, it's really that iphone demand has fallen off a cliff. it was actually i disagree. if you look at apple intelligence, especially what we're seeing in us having a positive impact and that guidance that's really

reflecting right now, i think you have a trajectory to where you're going to ultimately have accelerated growth in china, starting, i think in the june quarter, you could have double digit china growth as apple intelligence launches. we believe ultimately probably in the month of april. >> what did we learn overall about apple intelligence and the uptake. and was there anything surprising because it's been hard to get a narrative on whether this is really working in the way they expected? >> yeah. look, we've talked about a lot on the show about all of our asia tracks. i think what the first thing you're looking at is that apple intelligence is driving upgrades. so it's the strongest upgrade core they've ever had. so i think that is really positive in terms of iphone 16 over iphone 15, because that's all part of this multiyear, massive upgrade cycle. call it an elongated supercycle that you're going to see. and also it's about the install base. install base is now up 7% year over year. 150 million new devices added to the apple ecosystem. look, that speaks to our thesis. you could sort of go through each quarter and sort of

nitpick, but ultimately it's about the golden install base of cupertino and ultimately the ai. the consumer ai revolution runs through cupertino. and that's even why this week, despite all the panic with deep tech, apple stock was up because investors have started to recognize they're a toll collector one way or another. if it's if it's us, china, middle, wherever it's coming from, the consumer ai revolution, 25% of consumers will ultimately access ai through apple. >> yeah, we've talked about them being kind of a free rider china, though. i mean, they continue to face increased competition. xiaomi or or others in the market. what gives you the confidence that when they add the ai features, whatever may even be allowed by the chinese government, that it's actually going to really cause an uptick in sales? >> yeah, and that might be the biggest debatable point here is like, what's going to give confidence that china is going to reverse. but i think whether it's baidu, tencent, in terms of when that partner is announced, part of it is 100 million of an upgrade in basically three and a

half, four years in china. so there is a pent up upgrade. they've gained 200 bips of market share. and from all of our checks, you know, in china, really across asia, it's showing that demand is there for reason to upgrade. and i think with apple intelligence as they roll out more features. remember .3.4 and continues this is really going to be the start as more and more apps are built on top of apple intelligence in the us, and especially what we see coming out of china in terms of catalyzing demand. >> so all of these third party surveys that suggested consumers were not moved by j'en ai offerings, is that because they just haven't seen the good stuff yet? >> yeah, because this is this is just the beginning where you're going to have ultimately hundreds of apps that are going to be developed on top of apple intelligence that whether it's health, whether it's fitness, whether it's whether it's financials, regardless, different verticals, eventually autonomous robotics, it'll all come through apple. and i think

that's why our view here is that to look at this and say that they're behind okay. round one maybe they lost round two with 2.3 billion ios devices and 1.5 billion iphones. you could lose the first round if you ultimately participate in second, third, fourth round. and that's where we are. and this is just the beginning of the ai revolution. >> what about valuations? sorry i mean it is it gives people hesitancy. i think it's got a higher multiple now than nvidia. you don't view it as a as a concern at all. >> yeah. so i, i continue to view it as you have to ultimately some of the parts what that services business is worth and also incrementally what you think ai is going to do to the numbers, i think incrementally it'll be ten to 12 to 15 billion per year. you start to run rate that out in the next 3 or 4 years. i mean, from a sum of the parts perspective, i think it's a $4.5 trillion market cap. now i get it. investors, you know, that continue to sort of be

frustrated with the valuation. if you look at it on a straight pe. and it's always been our view for the last few decades, you've missed every transformational tech name, right? for the last 20 years. >> you just got to pay it. >> what about the elephant in the room which is tariffs? they're monitoring the situation. didn't have much to say on that. but what happens to your iphone price if we get an increased tariff on china. >> yeah i continue to believe apple and apple will essentially be they will be a loophole or essentially, you know, a way that ultimately they. exemption there's essentially going to be and look, it's going to be a white house. supposedly there will be some sort of exemption for apple for nvidia, at least on some of the chips, because apple, when you look at it, cook 10% politician, 90% ceo. and i think these tariff issues have always been sort of the black cloud over the apple store. they've been able to navigate them before. they'll navigate them now. and i think they continue to be successful in china as well as the us. but you look at this quarter, the big

takeaway despite white knuckles start the week. apple comes out shining given a lot of the fears right. >> the last question really quick. are you less sanguine on microsoft given the events of the week. >> i'm more i'm more bullish just because i view it as it was the non-ai piece that was weak. i 13 billion you own this because they ultimately have the capacity and i play. and i think it just continues to be one of those where the street got that wrong on the actual quarter. >> all right dan thank you. >> thanks. >> been trying to like trying to tackle saquon the bears yes. >> again that was a good one. >> again even i know what that means. >> look the haters will continue to hate you. focus on the story. that's why we're bullish on apple. >> and ives. always appreciate it. >> thank you. speaking of nvidia at least as dan said, jensen huang expected to meet with the president today making his way to the white house. nvidia by the way, back to the 200 day. first time this week. stay with us. >> real time exchange sector sword is sponsored by sector

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>> i'm courtney reagan with your cnbc news update. the massive recovery effort continues on the potomac river after wednesday night's fatal crash between an american eagle flight and an army helicopter at reagan national airport. a law enforcement official tells the associated press that more than 40 bodies have so far been pulled from the water. a source familiar with the investigation tells nbc news that a tower supervisor at reagan national let a controller leave early, meaning a single controller was handling plane and helicopter traffic. while ideally that would have been handled by separate controllers. investigators say they recovered the two flight data recorders from the american eagle flight. but defense secretary hegseth says this morning that they have yet to recover the black boxes from the army helicopter. and while the national transportation board says it's still investigating, president trump said today that the helicopter was flying too high. sarah, back over to you. >> okay, courtney. thank you.

nvidia ceo jensen huang set to meet with president trump at the white house today. our seema mody has more color on the meeting. seema, what do we expect to be on the agenda? >> well, sarah nvidia ceo jensen huang we're hearing is in dc and will be meeting with president trump at the white house today. per sources familiar. the main topic the two leaders are expected to discuss is our country's artificial intelligence policy. i'm told that deep seek will no doubt come up in the discussion, but that that's not what prompted this meeting. it's been in the books for a while, as a way for huang and trump to get to know each other better. other topics range from u.s. chip restrictions on china, which are currently being evaluated by the white house, and the onshoring of semiconductor production in the u.s. as the commerce department looks at ways to revamp the biden's chips act. another topic huang will likely bring up is the biden administration's diffusion rule, which was unveiled just days before biden left office. that severely limits the shipment of graphic processing units to a large list of countries which

critics have said will impact our country's leadership if it does go into effect. so the question is whether trump will reverse that specific rule that is expected to go into effect this spring. david. >> seema. thank you. seema mody. as we head to break, check out the biggest laggards on the s&p, at least for the month of january. you see there of course constellation getting hit in part once and electronic arts on semi led by edison international. we'll be right back. >> we empower those who act those who see the correlation between predictability and probability, those who manage risk by anticipating each movement. flawless execution timing and accuracy. identify the goal. match power with

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official. start your will at trust and wilcom and make it count. >> canada and mexico bracing for tariffs. with the president's deadline just hours away. our megan cassella joins us from the white house this morning. talk about what we might be looking for this weekend. hi, megan. >> hey, karl. that's right. so a lot of moving pieces at the white house today, including this deadline of tomorrow for those 25% tariffs against canada and mexico. so president trump said late yesterday that he does plan to move forward with those

over concerns about border security, fentanyl and the trade deficit. and what i can tell you now, after just talking to people inside the building here, is that preparations are being made for a formal announcement in case they're needed. so the president will be in mar-a-lago this weekend. and if he does decide to move forward, they will be able to pull an event together fairly quickly in order to announce them. but that being said, the negotiations with canada and mexico are still ongoing and so tariffs tomorrow are not yet a definite at this point. canadian and mexican officials have been in washington all week to discuss actions to shore up border security and stem the flow of fentanyl, and i've been told by some people in touch with the administration on this that canada has been making some progress, but that the president is still looking for more from mexico specifically, potentially dealing with cartels. so it's not clear exactly what would satisfy the president and lead him to delay or cancel these tariff plans. but there is still room there for a change of plans it may depend on, as one person put it to me, whether progress rather than perfection is enough

to appease the president by tomorrow. and one last point on this, guys. with so much up in the air, we don't yet have specifics on when the tariffs would take effect. if they are announced this weekend, whether it would be immediate or whether there would be some runway. so a lot of things up in the air as we move closer to the saturday deadline, guys. >> megan, what do we make of some of these reports that the administration is looking for a bit of an off ramp, worried about a court challenge and the possibility of another injunction after the one on that omb memo? >> it's not something that they want, right? we know that this president is always very concerned with his public image. he's very concerned with the markets. and so he's seeing everything that's been going on this week. one of the questions is whether all of the events of this week have put him back on his heels, and he then wants to come out with something that he thinks would be a strong move, such as tariffs, or whether he's worried, as those reports say, about something like an injunction injunction and wouldn't want a second one. so, you know, i've been talking to people, and what seems clear is that the decision is up to trump entirely, and it's just going to depend on what his mindset might

be heading into saturday and whether or not he decides to move forward. >> you know, listening to peter navarro earlier on squawk box, megan, you know, i just struggled to fully understand the problems they have with canada weather. i mean, they talk about immigration, i guess, and fentanyl are those real issues at that border leading because it's not about necessarily the balance of trade as much. >> it's not as much of a problem on any of those fronts with canada as it is with mexico. it's a much smaller trade deficit, some 68 billion, i think, versus 150 billion with mexico on the good side on the fentanyl, only about 40 pounds of fentanyl were seized in the northern border last year. that's according to the cbp data. so very small amounts there trace amounts especially compared to mexico. and the immigration numbers are similarly small. so it's not much here with canada. but he's worried about the deficits. he thinks that they don't spend enough on their defense. he hasn't really been getting along with justin trudeau recently. so they're all piling up. and i think he groups them together to wanting to put tariffs on both at the same time.

>> we'll see what we're in for this weekend megan, appreciate the help. we'll talk soon. megan cassella down at the white house. when we come back, the rise of meme coins and their legal implications as we take a look and take stock of what crypto has done in recent days. stay with us. >> it's not if the markets will turn, it's when. and howard capital management, our proprietary family of funds, actively navigates complex market landscapes while seeking to safeguard your tomorrow. we aim to empower investors, delivering opportunities with a tactical mathematical approach. start investing with confidence today. contact your financial advisor and see how howard capital management can redefine your fund experience. >> individually. >> each of us is great, but from here you can see we're one big team. at atlassian. we believe real progress takes all of us working together on new sources

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>> closing bell overtime for 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. >> we have had a lot of activity, of course, in the crypto industry. ecb president christine lagarde yesterday dismissed the idea of a, quote, bitcoin reserve. our next guest also against that idea all as president trump lays the foundation for a more comprehensive, government backed approach to the industry along with the regulation of the industry. here to talk about the legalities of it all, former cftc commissioner tim said. tim, good to have you. >> good to be here. thank you. >> you know something we haven't discussed because there's been so much news of late is this trump meme coin. and so i just love to start there, if i can, with you and jim grant, who writes his newsletter, said the

inauguration eve meme coin money grab has made the president a much richer man on paper, but also a hostage to political and legal fortune. how do you see it? >> well. >> i agree this was plainly a bad thing, a wrong thing. you don't have to be a crypto expert, i think, to see that the trump organization took advantage of the impending inauguration to make money. and they did so in a way that wasn't just a conflict then, but it can create conflicts in the future, because you can have companies and countries now buying that coin to coins, rather to try to curry favor with the administration. and finally, it's in my mind a bit of. >> a. >> black eye for crypto. it's exactly the kind of speculative activity pushing up token prices that we've had far too much of, and it really runs counter to the whole philosophy of the executive order, which is to promote the responsible

development of this technology. that's what i would like to see. >> yeah. i mean, grant describes it as a digital pinball. and just to put it in perspective, there's no real value in it. right? it's just it goes up and down based on, i guess, the perception of who's going to buy it next or sell it next. >> exactly. and as i say, we've had a lot of that, you know, because that's been easy to do. put out a token that has no social utility, no underlying value, and then try to push up the price. what we need is a framework that encourages more responsible development of this technology in ways that have true social utility. and, you know, one of the things in the executive order that i like is promoting stablecoins, because stablecoins, the tokens that are whose value is pegged to the dollar, could really be a useful means of payment. they're probably the most important application of the technology to date, and we need a regulatory framework that seizes the opportunity for that. but also addresses the risks.

>> is that how does that work? who would who would give that? is that a by the fed? >> well, you know, i. >> wrote with a couple of law professors a paper a few years ago explaining how the biden administration could have done this on their own without legislation. they didn't take us up on that. unfortunately. it still could just be done administratively, but it also could be done by legislation. and there is legislation pending in congress that i hope is enacted. the draft i've seen addresses a lot of my concerns. it doesn't address all of them. but, you know, we're seeing countries around the world implement these frameworks. and it's time we did. the other thing about stablecoins is i think it could be good for the dollar overall. but the main thing we have to address that, i think a lot of the frameworks don't aren't adequate on is the risk that these can be used for financial crime or evasion of sanctions. and i hope that's where the trump administration agrees and does focus on that, on that concern. >> how does that relate to the

strategic bitcoin reserve idea and is that a good idea. >> all right. >> so that's saying the government should own bitcoin and other crypto assets. and it's true that the government owns it today because they seize crypto in enforcement actions. but that doesn't mean they should hold on to it. they should continue to sell it in my mind, the same way they sell equities that they seize or houses or jewelry, you know, those things go up generally in price over time too, but that's not a good reason to hold on to them. the government shouldn't be owning this stuff. there's no strategic purpose to having such a reserve or stockpile. and frankly, it's bad for crypto, for digital assets, right? i mean, if the government owns this, then where does that take us? does the government say, well, gee, we've declared this strategic, so maybe we should control mining or maybe we should, you know, control some other aspect of this. so i don't think it's a good idea and i

think it would be a bad thing to do it. >> tim. the other thing we've talked about separately in the last few weeks have been the surge in the ability of compute all around the world, right? it's been about deep sink for a few days. it's been about quantum, which always leads us back to a discussion of whether or not there is some kind of existential risk in the encryption of, say, bitcoin. where are you on that? >> well. >> i don't know that i see that kind of existential risk. i mean, look, this is a technology that i think could be very valuable, but we really haven't focused enough on the useful applications because we haven't had a framework. i think that encourages that. we haven't had a framework that tamps down a lot of the speculative activity or a framework where, you know, banks could say, hey, let's look at how we can use this in ways that are good for our customers. now, some banks are doing that, but, you know, greater clarity

might allow them to say, okay, i'm i'm comfortable now making a long term investment and looking at how we can use that. i'm sure there are issues that, you know, we haven't fully resolved, particularly, as i said, on the things like financial crime. but i still think, you know, it's it could be a very important technology and we need a framework that encourages that. >> finally, tim, let me just end where i started on the meme coin. i mean, the first lady has one as well. do they make money on the transaction fees on solana on the platform? is that part of this as well? >> well. >> i don't know all the details of that. i mean, they clearly make make money when they issue them and they've set it up so that additional coins are issued over time and again. that's why i say, you know, this has an ongoing potential for conflicts of interest, because if you're continuing to get money from the sales of these coins, then you want people to push up the

price. so i think it's very unfortunate. >> all right, tim. appreciate your time. thank you. >> thank you. >> we'll be right back. stay with us. >> cnbc crypto world is >> cnbc crypto world is sponsored by carl: what's up, carl nation! it's your #1 broker with the best full-service wealth management skills in the biz. tech asst: actually i'm seeing something from schwab. (uh-oh) producer : yeah, schwab lets you invest and trade on your own. and if you want they can even manage it for you. not to mention, schwab has a team of specialists for taxes, insurance, and estate planning. both producers: all with low fees. carl: we're experiencing technical difficulties... uh, carl... schwab! schwab. a modern approach to wealth management. it's a smart move to get a second opinion. you do it when you're looking for a contractor. you definitely do it with medical advice. so why not with your stock market investments? we can help you see opportunities

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the bosley guarantee. >> i like you. >> a key concern for apple investors remains china. after overall sales, there fell 11% in the quarter. let's get to eunice yoon. talk about this some more from beijing. hi, eunice. >> hey. >> so, you know. >> apple has a. real fight on its hands. >> to. >> release, to retain. >> market share as its chinese rivals release better and better products. behind me is one of apple's first stores in china. the company has been facing a lot of competition these days. like those guys. huawei has become apple's biggest rival in china despite and maybe because of, washington's clampdown on the chinese tech giant on national security grounds. as a chinese, i definitely consider chinese brands first. this man says it's a matter of national pride. huawei has a reputation among chinese for having technology on par with apple, including a very competitive camera, which is an important feature for many chinese. all

the chinese brands have been upping their game with better features and technology, and the perception is they're narrowing the gap. there isn't much difference among all the phone brands anymore, he says. there's a myriad of models foldables, super thin professional lens screens that double as a tablet, all appealing to chinese consumers who are constantly on the hunt for something new. brands like xiaomi, oppo and vivo are moving into higher price levels. typically apple's domain. historically, vivo is known to be a cheaper brand. but look at these prices. the bestseller is over $800, but the iphone still has its army of loyal fans. apple holds roughly one sixth of the market here. and the big thing to watch is ai. chinese companies are already rolling out ai services, and tim cook said that he's still working with regulators to bring in apple intelligence guys.

>> yeah, i was wondering about that because steve kovach, i think in the conversation with tim cook, asked him if he would partner with deep sea, for instance, because they can't do open ai like they do the apple intelligence here in the us, in china, right? yeah. >> that's right. and i think kovach had gotten quite a neutral answer from tim cook. and i think that just based on the fact that already we're seeing some pushback from washington out of congress, potential evasion of sanctions on the part of deep tech, or at least accusations of that, and then open ai being suspicious that deep sea could potentially have been training its own model off of chatgpt. it seems that that would be a difficult relationship to have at this moment, although there are other competitors and other options out there from baidu, alibaba as well as bytedance. >> eunice. thank you. eunice yoon in beijing for us as we take a look here as we head to a

quick break for you. the s&p is up about three quarters of 1%. nasdaq having quite a nice morning here up 1.4%. seems so long ago of course that monday when nvidia shares were down as much as 17%. they continue to rebound a bit, though obviously still down from the levels they had prior to the beginning of the week, but up another 1.6%. we've got a lot more market we've got a lot more market coverage for you coming straight check in time is 3:00 it's 2:55. i know. is this what he's doing now? as your host, i have some rules. first, no showers longer than 5 minutes. this isn't a spa. no games. no fun. yes, coach. (♪♪) meanwhile, at a vrbo... when other vacation rentals make you share your turf with a host, try one you have all to yourself.

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>> good friday morning. welcome to money movers. i'm carl quintanilla with sara eisen, live at post nine of the new york stock exchange today. despite this month's volatility, the major averages all pacing to finish the month in the green and maybe at all time highs. how will the rest of big tech earnings impact the nasdaq, which is underperforming? we'll talk about it then. >> an exclusive interview with ceo of palantir, alex karp, his outlook for the global ai race, the impact for the defense industry and his brand new book. all of that with palantir shares at a new all time high, up 400% in the last year. >> ceo of hpe is with us, a first on cnbc interview with his response to that doj lawsuit aiming to block its $14 billion acquisition of juniper, the first