of the earnings tonight. >> yeah we would we still we have a buy rating. and our price target is 261 right now. and we do see upside. we're pretty excited about the margin free cash flow growth that we're expected to see at amazon over the next few years. we do think amazon could even announce a large share buyback at some point in the future, given the inflection in free cash flow. >> so yeah. >> we got to go. i'm sorry we're out of time, but it's great to see you. thank you. that does it for us today. right now it's time for squawk on the street. >> good thursday 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. s&p is going to flirt once again in the neighborhood of all time highs, as shares of tech and financial giants stay pretty solid. yields remain subdued. ten year 442. that jobs number, of course, is on deck tomorrow. our road map begins with the chips shares of qualcomm and arm under a little pressure despite respective quarterly beats. do not miss arms chief renee haass is going to join us in the next hour. >> as for.

>> autos. >> tesla vehicle. sales tumble in europe while ford. issues full year guidance that is weighing on. its stock as well. also ahead, honeywell announces it's going to split into three publicly traded companies. we're going to speak with the company ceo of venmo kapoor. that will be later in this hour. >> let's start with the chips. we mentioned arm and qualcomm skyworks solutions as well. under pressure in the premarket jim down some 30%. >> yeah. and liam. >> liam griffin did such a great job. it's been there for ages. he will be. out i don't know you can't. necessarily relate it to two. but skyworks has a huge percentage of apple's business. remember apple's like fight club. >> you can't mention. >> apple in the conference call. you say a large client. but it looks like the broadcom is going to be splitting. >> maybe not. >> as much as skyworks but that's just devastating. skyworks a very very good for broadcom. >> and this. >> is just hock. >> tan. >> just coming. >> through every cylinder. >> but david you know when. >> you have one. >> client it. >> is just a. very rough thing.

>> yeah i mean you're you're always at risk. obviously we've seen skyworks shares always move in sympathy with apple one way or another in terms of demand haven't we jim. >> absolutely. >> have they not been able to diversify their client base significantly over these years? because it's not as though this is new that apple wasn't their largest customer? >> absolutely. and i think that. >> one of the things that. >> that the company. >> may regret. >> is, you. >> know, they've got some samsung. >> business. >> but they needed to. >> go far afield. >> when we. >> see these companies like nxp, okay. and nxp they say is autos, but it also has near-field communications. is it texas instruments has got a little more. it's got iot and it also has auto. you need something else in order to make it. so if you do lose the greatest customer in the world. >> and they didn't. >> lose. >> it, they. >> just lost some of it. >> then you. >> have what this is. >> by the. >> way. liam griffin is a liked person. i mean, he's out in two weeks. he didn't answer the calls in the conference. he didn't answer the. >> questions in the conference call. >> so it was disconcerting. i

found the. >> whole thing disconcerting. i did not find. qualcomm dispersion. >> disconcerting because it was an interview on the 4:00. he was interviewed with megan brennan with john ford. >> and he's. >> a bit promotional, but i do think that he's gotten what he needs. >> but guidance wasn't bad by any stretch. >> no, but well. >> at the same problem when we speak to. >> rene haas at arm, i mean. >> people are asking for. >> too. >> much of these companies. they just are. people seem. >> to think, well. >> wait a second. >> you're going to claim. >> you're going to claim that. that deep. >> seek is. >> good for you? well, if you're claiming. >> then shouldn't you be raising in the out years? and no one's doing that because it's not really the way that you should look at things. it's more they're playing defense, not offense. >> i'll tell you what's interesting is the range, the tight range that the sm has been in since june of last year, let's say. >> it's been it's been very. >> very difficult because. >> frankly, they're one of the segments you don't want to be in. there seems like there's too much competition. you have

qualcomm going against arm. you have arm going against amd. you have intel flailing okay. and then you have nvidia which lately has come under attack. texas instruments way to iot. you've got a group david that is frankly verklempt is the word i was searching for. yes. >> it's a word we've used frequently through the years. you know, i mean qualcomm again the reaction to the quarter just to and you said this were very positive. it was a strong. >> quarter quarter. >> for the company. but it does put at least it sort of does reflect the broader i think, concerns that investors have right now. and it's not as though many of these companies don't trade at fairly significant multiples. they do. so it doesn't leave that much room for error or even for concern, which seems to be just building up around, let's call it a lot of the, i don't know, the apple ecosystem and in general, or fair to say. >> yes, i think the apple ecosystem, but i also think that there's this notion of this came

in the wake of google, of alphabet saying they're going to spend like mad. >> by the way, qualcomm had shared gains with samsung. sorry. i mean, so no, no, not as though. right. >> though qualcomm did very well. i mean. apple i think that the stock ran. it was ridiculous how much it was and there wasn't anything they could do. arm it was ridiculous. i mean what do you want these companies to do. and when you saw that google actually went down on the spend, you started to say, well, hold it. it was great for the spend. and we were thinking, microsoft maybe, okay, that went down on some other things. yeah. >> i mean, google went down yesterday. obviously the capex number was a was a bigger number. and then the cloud number, the deceleration even though 30%. >> growth. i mean. >> and by the way, the multiple in alphabet is below so many of these. >> other companies. >> and it. >> held the 50 day, by the way. >> well true. but people also said value trap. now can i just say that google cloud was not that bad. right. but we seized on that as a reason. we see this

way too often. we'll see google cloud, we'll see a division not be perfect, and we'll say that's why it's going down, because the division is it doesn't come on air and say, hey, listen, you know what? you guys are wrong, right? i think that google cloud probably had a lot of good things in it. we just didn't talk about it. it's been a juggernaut. >> meantime, big conversation today about ai. we know that openai is going to advertise during the super bowl. >> do you like that? >> we have this paper out of stanford, where these researchers claim to have trained a reasoning model for 50 bucks in cloud credits. that's making the rounds. >> well, we can ask rene has that. i think that by the end, these guys are going to make it so that they pay you to take that. i mean, there's a little absurdity going on here. why is nvidia not at 20 or 30? because it's not true. well. >> i think there's two different things here. one is the potential commoditization of the of the ai providers. the openai

is the gemini's, although it's obviously associated with the anthropic. do you want to go through them and whether they will be sort of offering all of them a product that is very much similar, and so what is going to end up differentiating them? >> right. everyone has one. >> openai trying to raise another, what, $40 billion at a 300 billion plus dollar valuation. >> with amazon says because amazon could lay to waste everybody. and then. >> there's the other side of it, which is yes, but you're going to need inference. inferencing is everything. and that's still going to require blackwell chips from nvidia, the only real player, even though others are trying to design some. >> of their own. now, that's what we're going to hear from rene. has any. >> efficiencies, will just be baked in and ultimately get us to wherever we're going a bit faster? >> what's hurt this period? it is the nvidia quiet period. and what if jensen were to come out and say, you know what, i hope this stuff goes to zero because then you'll be able to use the part of blackwell that is so great, which i think is true. in

other words, there was another recommendation of nvidia. they're obviously trying to get it so that it stabilizes. but i think that nvidia, if we hear tonight that amazon says, you know what, we got to spend our trainium isn't going to do it. we remain great partners for nvidia. if we if we here remain great. partizan nvidia david nvidia goes to 245. really. >> yeah amazon is going to be an important friend. we're looking for their revenue to outpace walmart's. for the first time ever. deutsche has got a chart out today where they look at all the hyperscaler capex and they reference chuck prince calling it an eerie parallel to chuck prince. the famous quote, as long as the music is playing, you've got to get up and dance. >> we should explain to. >> people. >> who chuck prince is, because many people may not even remember he was the man who ran citigroup during the financial crisis or going into it. he'd been the general counsel, by the way, took over for, i think it was for sandy weill. yeah. and that was his famous quote. and of course, citi basically was

this close to me insolvency. >> well that's true. yes it was. they were the worst. and that's why i think that their book value is still tangible, book value still, they've never. fully recovered from. no, they did. okay. i think that we're going to see this is what's going to break amazon out. the word that they have an alexa who's going to be your personal assistant. >> you wrote about this yesterday. >> yes. now i mean this morning i get up, it's like, you know, the usual 4:00 the futures look bad with honeywell at 238. and i asked all i ask all i ask was beethoven's first piano concerto. nice. and i get those brendel sonatas. oh, well, i mean, what what did i say to her that said sonata to her? now, when i go to brian olsavsky, i go to the cfo and i have said this. i've said, i am dog tired of asking for stravinsky. and they give you tchaikovsky. that has to end. and he said, not only will it not do that

anymore, but it will say, you know, here what, at 820 you have a photo shoot at 845, you have to wear new tie by ferragamo at 847, it's a brioni suit at 852. you better look darn good. that is what it's going to do. so, david, if it does that, instead of just, you know, saying, well, the joke of the day, you're going to buy one, an 8 billion black hole. alexa, no. >> more, no. >> more, no more. >> that'll be that'll be helpful for amazon. >> will you will you bring it in. no. why? you don't like the fact that they know everything about you, including what you say to your wife? >> not that it matters. i'm sure somewhere they all know something about me, and i'm sure somewhere there's a chinese server that has every last bit of information. >> or an. >> american server. well, yeah, that too. >> but we. >> want, by the way, if it's on an american service, probably on a chinese server. also. >> the chinese should be working about trying to get stimulus of buying, not like listening to us, not like stealing every. >> single bit of information possible that they can steal. >> yeah. you know, i come home and the discussion is would you

like us spinach? would you like green beans? they can have all that they want. >> i'm a chinese agent. >> see you later. >> david, we have a commercial break. >> all right, all right. >> as we go to break, when we come back, a look at where elon musk's involvement might be impacting tesla sales as the sales declines in europe getting some attention. jim mentions honeywell. we'll get his take on that. a lot of movers peloton, under armor, hilton, tapestry, yum. lilly. ford. hershey in a minute. >> nothing stands still. not technology, not the market and not franklin templeton. we've been a firm in motion for over 75 years, always innovating. today we're a leader in public and private markets, digital assets and custom tax management, empowering advisors with solutions to build the portfolios of the future. today, franklin templeton, your trusted partner for what's ahead. >> the pop. >> culture collectibles market. >> is. >> valued at over.

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thought it was very important for the american people said, we are having this conversation. while honda is importing 600,000 units in the us with no incremental tariff. why is toyota able to import 0.5 million vehicles in the us with no incremental tariff? i mean, there are millions of vehicles coming to this country that are not being applied to this. now. i think that that's what i would go to the president and say. >> so this is another wrinkle in this discussion, is whether japan gets enveloped in these trade disputes. >> korea, they got the they have a real they've got a terrific deal. and that is not i think in keeping with what we should be focused on. i agree with farley. like you're going to get this back and forth problem with mexico. it's going to cause our cars to go up a lot. but the free riders i find, right. >> what is it ultimately? what does it mean for the us consumer? i mean. higher prices, higher prices, far higher prices. >> but right now there's an inventory glut. >> it's just interesting how far we're willing to go. i mean, on one side is let's just open it all up and let the chinese basically take over our auto

industry and give us all $20,000. ev's not going to happen. no, not going to happen. and on the other is nobody but all all made here. right. that's it. >> yeah. claudia sheinbaum ratings i was looking at hers yesterday. president mexico through the roof the 80s because they feel that she offered a credible solution, which is to sit down and talk with the president. >> i mean, all right, what about from europe, then? german. german cars from europe as well. >> i mean, well, i mean, german cars seem to have. >> german luxury cars. >> tesla seems to have a some people say trump problem coming. >> yeah. no, i'm just talking about what's the is there going to be a significant tariff on them as well. >> well it happened. >> to the us. >> they just they've gotten the again free riders. it's mexico. and when you think of mexico you think of ford. >> europe's economy is already in a tailspin. although i think to say the. >> least, very well, banco. >> banco santander, i knew it was going to say that. >> well, it's, it's a 40% gain.

isn't that what we're about? >> i know you also have a. you like her sock? jen i won't say i won't. i mean, lisa watches now the show, so i won't talk about you. >> know, she's. >> not, but. >> she's a. >> banco santander ceo. >> but she's not at least. but she said, listen, i think that the 1015 is when you really swing into action. so that's great. just great. i do think that ford is a tough read. you know, they gave you this 15 cent dividend and nobody cares. we wanted a buyback. you're not going to get a buyback. and it is a very poignant call because it shows you that what trump wants to do is going to hurt them, hurt them more than anyone else. >> so he wants to hurt. >> he doesn't mean to, but the ford makes the most cars that have to go back. >> in mexico. yeah, back and forth or their components and things of that nature. >> i'll take you to one of the ford plants. >> yeah. you always promise you never take me anywhere. >> yeah, i don't, i mean, why would i want to go with you?

>> i don't know, apparently you don't. well, i mean, you have. you did pay for dinner at that time. >> look, i think if your mom went to go, i'm all in. she's nice. treats me like a king. treats me like a king. like i'm royalty. bill. that's his mom. the people at home. that's true. but look, i worry about ford, because why is ford being punished? i mean, put a tariff on everybody. and just. do you know ford mexico? what did they do? they went for the free trade agreement. they were foolish enough to believe in the free trade agreement. >> that was negotiated with the last trump administration. >> i feel bad for farley. he's a serious guy, serious practitioner, and they have some businesses that are doing well, their subscription business. i like the e is not doing that horribly. they've got a new navigator coming out that could be good. so i don't want to write them off. i just don't want to own it. >> yeah, yeah, the model e was a miss, but the ebitda was ahead. we'll talk more about cars. >> yeah, i mean it's just the call. the call was downbeat. what can i say. it was downbeat. >> well get cramer's mad dash count down to the opening bell.

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dash. got an opening bell a little more than eight minutes from now. plenty of earnings movers to get to. let's talk a little bristol-myers. >> i think that there's a lot of misinformation about the drug business. we did get shocked by merck the other day. that was i did not know about the gardasil in in china. it caught me leaning the wrong way. this company did tell you at the j.p. morgan conference that revlimid, which is coming off patent, was going to be a real problem, but nobody changed their numbers. so it comes out. revlimid is a real, real problem. so it goes down. but what people are forgetting is the incredible launch of co-benefit, which is their schizophrenia drug, which has just taken off and i think is going to be really rolling. you're going to have a readout for some alzheimer, agitated aylmer's alzheimer's at the end of the year. and david, i think that ultimately, because we have no new drug for schizophrenia in 30 years, this is going to be one of the biggest drugs in history. so you're selling it right here off of a of a loss of exclusivity about a company that

they bought, celgene, which they paid far too much for, frankly. and you're selling it off that instead of selling it off the future. and that's you know, that's what people do and it's foolish. it's a buy. i own it for the club. i have a small position. i was praying this would happen so i can go in and buy it. >> a little more. when was that period, jim, where we talked about bristol-myers. how many years ago was that? >> well, bristol-myers. >> what was behind. >> that time? they i that was that period where they never missed the quarter. right. and then it turned out in some ways they were stuffing the channel. >> oh. >> whoa, whoa. i don't remember who found that out and went after them. that a federal u.s. attorney, chris christie. all right. >> that's that's quite a. >> while ago. it sure is. and he was adamant that they needed a special master at bristol-myers. there was no more bristol-myers after that. but anyway, this is a new guy. it's chris berner. he's crushing it. people should recognize what this carbon fee is for the whole country, what

it means. and it's going to have medicare. it has medicaid. people are. this is what makes people transients in the street. it's not alcohol. >> it's mental health. yes. mental health. all right. we'll keep an eye on shares of bristol-myers. also going to keep an eye on shares of honeywell. of course we're going to have the ceo join us a little later in this hour. splitting into three companies. a lot more squawk on the street coming your way. >> earnings season on cnbc takes you inside the numbers. and when the ceos have a big announcement they come here first. >> a wild. >> hour. >> of nate jones... steps up to the mirror... lines things up... towels off... checks his fidelity app... looks to outside analysts to get a second opinion. nate likes what he sees... same page? -[ dog barks ]

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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. >> market moving interview yesterday, the treasury secretary saying that the president is more focused on the ten year yield than the short end, versus calling for the fed to lower rates. although the president, when he did address davos, jim, did say i will immediately call for interest rates to be lowered. >> you know, look, is this discord or is it just a recognition that it's just not the way to go? i think the treasury secretary has won the president over in terms of the notion of, listen, i've got it

under control. let me handle it. you don't need to yell at the fed, dave. yelling at the fed. yelling. yelling at jerome powell. sucker's game doesn't get you anywhere. the president doesn't want to get in the sucker's game where he yells at a guy, and the guy then says, look, i don't really care what this president says because he doesn't like that. he likes fealty. >> he likes what? >> fealty. not fealty. celsius. that's stockton's from hell. yes. >> yes, he he prefers that. >> yeah. what do you think? >> i agree with you. well thank you, sir. can i have another? that's kind of what he likes. >> well, anyway, i think that that would make a lot of sense. this guy, he's making a lot of sense. i don't know how he's going to get the oil up 3%, but he's a no. >> 3 million. >> barrels. >> million barrels, 2 million barrels. but he's a he can't just say 33333333. we're like. >> 13 million to 16 million basically maybe a little. we need. >> a quarter. >> we need that. but i would say

that he's a supreme intellect. and people who know him or have read about him are kind of saying, wow, you know, this guy is a stand up and take notice here. he's a great practitioner of the game. >> well, what's interesting. >> is that you're talking about. >> yeah, yeah. >> no, i'm just making sure. >> but yeah. yeah. the treasury secretary. >> yeah. >> what's interesting is that after criticizing yellen for relying too much on the short end, it doesn't look like his strategy is going to be much different. >> i wonder if that's fraud that kept that guy fraudster out. look i read that and i said that caught people by surprise. it's like, wow. we all thought this could be leading to tenure. it didn't happen. now, david, i want to propose something. let's see what he says. i think we should have a 50. >> year bond. no no no no no. >> but this. >> is what we. >> we're back in 2017. we're doing the same shows that we. >> did 2017. >> we are we're talking bristol-myers and 50 years. >> how are you going to pay for the sovereign wealth fund without that 50? >> how about we just don't bother paying for the sovereign wealth fund? >> what you just lent?

>> we don't need it. what do we really need? a sovereign wealth fund. >> well, the president has said he wants a sovereign. >> i'm aware of that. i'm just. asking whether we need one. >> he doesn't say these things idly. he's thought them through. well, there's some aspects of foreign policy that. >> let's get the opening bell on the cnbc real time exchange of the big board is the association of african-american financial advisors. it is black history month at the nasdaq. it's the national black mba association. as we're back to 60, 61, jim, actually, some of the biggest movers, some of the double digit movers premarket were tapestry, peloton. >> rl yes. all right ralph lauren, can i just say that they are timeless value this patrice louvet my god he's so good. and he often says he'll say to you, and don't you have something in your closet that you've had for many years? and he makes the point. i just love it. it's not

an expense. it creates value. he his stuff is. you capitalize a sweater that you get from ralph lauren. look, the numbers are amazing. by the way, what's leading china? he's doing fantastically in china. >> although the story the story on this one is north american revenue inflects positive after six negative quarters. >> wow. north america is back. and david you know it's they are tiktok and they are insta. and by the way they are using mark zuckerberg's kind of look. you tell us what to do. we'll do it. and one of the reasons that meta is up, i think as many people are emulating patrice louvet at ralph lauren. >> so that's a. >> for that. they reached the right people, and tiktok reaches the right people. and i think that the business is on fire. but, you know, we have a good day. we have tapestry under armor. under armor is one where you have to admit the guy.

>> kevin plank i mean, it's a tiny company. let's not forget $3.5 billion market value. >> but just so i know. but kevin made a called shot. he said it was going to get better from here. peloton is rather amazing, but apparel, tapestry. that surprised me. that's coach. so there are some this tab. i'm seeing some life in that group, which i hadn't, but because they're so often connected with department stores. but ralph lauren's really cleaned up where the outlets are. >> no. he's right. tapestry up 20%. >> how do you like. >> that on those numbers as well? >> but this is this is very unusual. we had pvh going down. we had a very weak group. now suddenly we have a group that's worth looking at paying attention to. >> want to pay attention to honeywell. we're going to obviously spend some time with the ceo not too long from now. this is fairly historic. i mean, again, not unexpected in any way. the company over a year ago had said that it was evaluating potential for a split. remember, elliott then came into the shares with the largest activist

position basically of all time. as i recall, what, $5 billion? enormous. but they're doing it. and i think the market might have been surprised had they not. and therefore it was, you could argue, already kind of baked in. everybody's been looking into some of the parts on honeywell for some time. it seems to be the guidance for their actual financials that has pressure on the stock. they they came in with a weaker guide than at least many investors had expected. fiscal year 25 is now seeing earnings between 1010 and $10.50 a share. that's as much as $0.60 a share below consensus. but this is the committee. >> you have to buy because you're finally getting the three pieces. the aerospace business is fantastic. the this chemicals business grows a little bit better than the gdp. and you have this automation business which has been a disappointment. but you're right. >> and that's. that's what we're talking. it's going to take quite some time. they're talking the second half of 2026. but as jim just said it's automation.

and there are some cops out there. now there's rockwell you can sort of do as. >> a cop doing better. >> and then obviously we know what they'd love to come to for aerospace. well, they'd love to come to ge, which is trading at what, 20 times ev over. >> they don't want to come to boeing. >> no, no, i. >> think they can get it. >> anywhere near a ge aerospace multiple on honeywell aerospace. then you're talking a much higher stock price. and they already had the plans to separate advanced materials. it's about a $4 billion revenue business. put it in some perspective. but far smaller than the other. >> two aerospace. they have the cockpit. they have a lot of intellectual property in a plane. they have obviously some service. and i think that you do want to emulate you would like. now remember they're in every plane. they're in bombardier, they're airbus, they're in boeing. so they've got a hammerlock on the group that dave cody put that together. and i like that business. and you may have to just say hold your nose and buy it to get that business. >> yeah. and again you have to wait and see. i mean, the multiples look strong if and when you do create these

standalone separate companies and conceivably they can trade. >> that that factory automation. david the warehouse is bad. that's bad, that's bad. yeah i'm not going to sugarcoat that. that was bad. that's been a loser. but that was not remember that was not vimal's venmo inherited a hand that in some places he's been pretty busy. >> for a guy who's been there for 18. >> months, he sure has. elliott's made him busy, too. >> elliott has made him, as also added sort of pressure on them. again, it felt like they were on a path, jim, in some ways to get to this, especially given the success of ge that we've pointed out many times has had in the creation of those those companies, whether it be. totally with health care and of course. >> aerospace, which is why my trust owns that. we've been selling higher. yeah, i want to buy it back or hold on. >> got it. yeah. it would mark the end of one of the largest industrial conglomerates. >> that's been behind ge aerospace is rather remarkable. and i think you could join them. >> berkshire is the only one going to be the only one left. >> and speaking of berkshire, you're willing to call a bottom

tick on hershey and address this argument that somehow warren would be a reasonable theoretical buyer. >> look, i mean, in the end, see's candies are very good in the end. you got a problem with this? and the problem is the coca. but if coca goes down there, this is at 35 points. i mean, i think that that cocoa is unsustainable at the 10,000 level. it's really been about the 2000 level. and i just think it's just a matter of time that it comes down. but when you listen to mondelez, they've been saying that for a long time and it's done them absolutely no good. mondelez being what was a fantastic stock. now you can't i beat you on the head with the toblerone and you wouldn't even feel it. ooh yeah. >> that's horrible. no that's that's not pretty. >> no. >> but mondelez is always going to want to own hershey. they tried again and just went nowhere. i mean, the other problem for hershey's, the hershey trust. are they ready to finally deal? well, not at the price, apparently, that mondelez presented to them some time back. that didn't last long in

terms of at least the dalliance there. >> by the way. >> it's interesting that you note berkshire. i hadn't you know, that's who knows, right. >> would that change the trustee's mind? yeah, it's hard to know. >> hey, one that is just shocking to me. salesforce. okay, so salesforce gets a new cfo, robin washington, who's been there for a while. i think she's very good. i think she'll do a terrific job. and people are selling it down 17 like, you know like she doesn't know what she's doing. what an opportunity. she's been there for a long time. she's very smart. i know people like the cfo, but you know what? sometimes you just want to say, all right, i'm going to buy this company because this will not be a disaster to have robin washington up there. and so there you got a company that morgan stanley put out a terrific note this week, which was absolutely great about how agent forbes is doing. but on the other hand, amy weaver, the cfo, is fabulous. so people say, i don't want this, i don't. >> want this. you guys did. you guys did bristol at the wall, right? >> yes. >> we've also got lilly and azn to look.

>> at louisa by. salesforce is huge. by huge i mean look these stocks are going down. people want to sell things. they want to sell. get some negative news and they'll sell it. i mean eli lilly has a is in phase three for a pill form. they have to take the pill every day. they've got so many different trials going on that they use the font that i couldn't see. i couldn't see it. i saw the font. >> yeah, well there's lilly and then there's everybody else. i mean, they've just separated themselves completely from the rest of the nova. well, no. maybe not. i mean, certainly market cap wise, it's the only one that's that's close. >> lilly has the. i'm going down to see the. >> it's not even glp one. it's all simers. it's right. >> yeah. but you know what they're doing. they're putting up factories for things that have not been approved because they're so confident they will be. i like that i think david ricks is terrific. absolutely terrific. i know he's a good golfer. that's joe, that's a different show. >> are we going to be looking at them from a case study perspective, saying that they did something differently than some of their competitors? >> yes. they're going to say we

approach drug. >> development or what. >> they they were thematically disciplined for 30 years and they didn't start bolting on, you know, over decades, a pastiche of pipelines. >> yeah. and i like the fact that david ricks has said, i want a moat, and the moat is going to be that these are really hard factories. it's going to be like foundries. we haven't talked about intel in a long time, but, you know, they were they used to have this mode of foundries and you say, okay, well they're going to win against amd. well now everything's in flux. they don't have that lilly does and all that. look they've got trials going on. it just seems like you'd be nuts not to take the drug. if you have a comorbidity. and they need to get approval for a lot of health insurers. but it's an excellent, excellent situation. ricks is good. he kind of screwed up when he went on on. he was on my show. remember our show that last quarter? yeah, it was last quarter. at the end of it, it was like, hey, david, what was that you did david do over. no there's no do overs. it was not it was it was live tv. >> yeah. no do overs.

>> no do overs live tv. no. what do you. >> think of that? we know that i like that, yeah. >> speaking of do overs, jim, one famous do over that i know they wish they could have is starbucks. we've talked about this before. this is now the highest price for starbucks since may of 23. and that's with coffee arabica at an all time high. the futures on. >> coffee i like brian niccol very much, but i turned to jeff marx, my colleague portfolio manager, and said, you know what? i've loved this for so long, but can't we trim it a little? i mean, come on, i brian's great, there's no doubt about it. but it's still coffee. >> do we believe that starbucks gain is chipotle's loss? >> no. i thought scott boatwright did a good job. and i think that he. you know, january is not that good. february is not that good. some of that's weather. but when you get that, when you get that honey chicken, i think you're going to discover that limited time offer. people are going to come right back. now it's that sounds a little facetious, but that was a major part of the conference call, which is that don't give up on

the stock with that chicken comment. >> we got good comps out of yum kfc at five pizza. actually pizza was down two, but taco up five. >> david gibbs, he's got some hero brands. there. i thought it was just an excellent quarter. excellent. and he's you know look that stock is another stock that's kind of done. nothing but the multiples high. and today we got really really good numbers i was very impressed. and i want him to win too. those. that's a very cheap stock because it's franchised stock. chipotle doesn't do any franchising. >> i know uber shares are up almost 4%. >> this year. that was wrong. >> i know that's why i mentioned it yesterday. it was down rather. >> you watched my show. >> last night. no, i actually participate in my show, our show, and we were talking about it here because really what we talk about here is just, you. >> know, of course i thought that. >> then you take it and run with it later. >> my wife, i don't even want to talk about it. >> no, you shouldn't, you shouldn't. >> 20 years now. mad money that she does. >> yes. the anniversary is coming up. >> she's got the shows on at

seven. mad money. she missed the. 6:00 eastern, she said. but then she. >> said 20 years. >> i'll catch it at seven. >> so. yeah. you talked about uber last night and now it's up today in part because it was a many would think a pretty strong quarter. >> i thought so. >> but not in that response initially to those numbers. >> that's this thing that goes on where the first day it looks like it's not so good and people sell it. and then the second day they said, what was i thinking? unless it's estee lauder, they used to sell it. >> talk about names that aren't getting well received though on earnings. roblox guys, which was a high flier for quite some time. i think we should we should. >> i want to have them on and figure out what's going on. >> yeah. these these days missed. that was the big metric. people watch and you've been paying it. you were paying attention to that number. >> yes it was. and that's why i'm commenting. i have them on tonight because i've been critical. but he doesn't duck the people who are critical. and i think that's terrific. >> you know what's ratifying your long standing view about travel is hilton today. oh, i know that's going to be an all time high. >> and that's really not one of

the strong players. and what you said earlier just to go back on the semis. this is what keeps happening. broadcom is a clear winner with apple. and what happened to skyworks. so the stock is up three. and now it's like barely up nvidia. there's a fantastic morgan stanley note saying why they're the winner. and that's barely up. these stocks can't stay up. they just don't have the horses. >> well amd shares down again after a significant decline yesterday. not a great it wasn't a great quarter. concern about the data is. >> not going to be up right. >> and we do. let's where is arm right now actually as we get ready to. yeah down about six plus percent. >> well that's just the way i mean yeah. >> but you're talking about a stock of 122%. >> and by the way the float is very short. they're very small. and you know you have to ask them about that. >> yeah. well we will i'm not sure we'll have an answer. >> but right now because i always say, listen, it's not up to us. >> yeah. it's not us. >> it's our viewers. >> it's got a lot of capital commitments coming his way. >> we use our questions to be able to get at. it's kind of a

long standing mike wallace way to look at things, right? remember that? >> i do remember mike wallace. yes. >> meanwhile the cyclicals continue to do well. nucor hit a bottom. amazing. the largest steel company. >> well they're going to have a license to raise price. yes right. not every company can do that. >> they're the big winners because chinese steel is not going to come in anymore i think it's very important. >> the prime minister of japan and trump, i believe, will be meeting as well. there is some hope. you're talking steel on us steel that somehow they can change that. conversation around a tariff review. >> listen to it. maybe i listen to jim farley last night and he said there should be a tariff. tariff. jim farley's called is i love farley, but farley was the one who just said, listen, this can't happen. we can't have it happen. >> we can't have what happened? >> the tariffs. >> oh. >> meanwhile, i'm telling you about shienbaum. we never focus on china. she won't do any interviews, but. wow. i mean, come on, mexico, there's like, 60% approval is about as high as you ever get down there. they are standing behind china. all right. >> yes. >> those are those are reagan

type numbers. >> they are reagan type numbers. they are. yes. and we're not the evil empire, any of that stuff. >> we're not. >> no, no. she wants to play ball. some people feel that she's going to outsmart him. >> that's not very smart. >> yeah. >> at least judging from her. academic resume. >> scientific? >> yeah. we'll keep an eye on the peso, that's for sure. >> i bet you she. i bet you he thinks she's great and that they. and they reach a great deal. i'm saying put it out there. >> fabulous. 6076 s&p dow is up 50. watch bonds today as well. we mentioned the ten year still below four and a half. we'll get a fair amount of fed speak today. waller daily lorie logan tonight claims were pretty well behaved once again 219. we were looking for 214 of course nfp tomorrow. stay with us.

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legendary investors quietly ignoring that advice and instead selling the stock hand over fist? every billionaire on your screen has recently sold nvidia. some have offloaded millions of shares, in fact. hedge funds are quietly selling all of their tech stocks at the fastest rate we've seen since 2016. my name is mark chaikin. during my 50 years on wall street, i helped build three indexes for the nasdaq. that means i know how to recognize these signals from the tech market, and exactly what they mean for you and your money. i explain everything in my new free market briefing, including the truth about what's going on with nvidia today and the specific stock i recommend you buy instead. simply visit the website below to get the the website below to get the details 100% free.

ehh... hmm. oh, that's very, uh... - right? - mmm... this store doesn't have agentforce, so an ai agent didn't tip off the stylist as to what i might actually wear. - yes. - oh. that's a commitment. [glass knocked] hey bud! whaddaya think? you know, people can see you out here. ha ha ha ha, yeah, yeah, right, right, ha ha. love you, too. agentforce helps retailers prevent fashion fails. it's what ai was meant to be. ♪♪ need to become a better investor. >> go pro with a flash sale offer for a limited time at cnbc.com. slash pro flash terms and restrictions apply. >> all right we got to

straighten this out because the short term thinkers are selling the stock of honeywell on 2025 guidance. and what matters is the fact that they're going to split into three independent public companies. you don't want to miss the forest for the trees here. honeywell ceo venmo kapoor joins us exclusively now. venmo, congratulations on doing what a lot of people were hoping. and you've been working with this for a while, though we know elliott partners is in there pushing. could you just please tell us the parts versus the whole what you think? >> so. >> jim. >> i would say that. >> we have been working on looking at what's. >> the best. >> future for the honeywell. and as we did work over the last. year with my team. >> and with the board, we were convinced that there's a great future for. honeywell into three separate companies. specialty chemical. >> spin, which we announced. >> in october. >> and today's announcement, by which we create two. >> best in class. >> you know, companies, one in automation and. second in

aerospace. so i'm. >> really excited. >> on what's ahead for honeywell and our shareholders and our customers. >> which division do you want to be with? >> you know, the. >> i would say. >> i. will be with the company. >> as the time progresses. >> and let. >> the board decide. >> but i can commit to you. i'll be back with the, you know, in my in my new role as we continue this journey. >> excellent. now, i think that you've got a business that some people are concerned about. i'm using a comp, so to speak, of ge. we had ge healthcare was okay. ge aerospace was going to be great. and ge, which was a real wild card. honeywell automation may be a wild card. i know you've confessed to me that there have been some weaknesses there. what is the possibility then, when that becomes so-called laser focused because it goes out on its own, that will start seeing some genuine earnings improvement. >> yeah. >> so look, you know, if you look at our q4 performance just as an immediate gauge, what we delivered, honeywell grew 6% and

most segments did well. aerospace grew. double digit. building automation grew high, single digit, etc. that 2025 guide, jim, is based upon what we have conviction in and what we see. we are not making any estimates. we are not making any judgments on how things will get better. if they do. there should be. >> an upside. >> to our current guide. i truly believe in the future of the automation business. we are very well positioned in each of the three segments we play. industrial automation business has underperformed and we have guided low single digit. part of it. >> is this. >> business is more exposed to china and europe, where the markets are soft. but also part of it is it requires some additional portfolio work. so i remain very confident that the transformation work we are doing, this business will position itself well in the times ahead. and the overall honeywell, the honeywell automation in this case is going to be a very compelling stock for our shareholders for earnings growth.

>> vimal it's david. well, i mean, speaking of work, you've got a lot ahead of you. obviously you're talking about this not being completed until the back half of 2026. so there is time. but are you ready to go here. do you ■have any sense in terms of capital structure for these entities? i mean, you clearly haven't even decided which one you want to run or which one you're going to run. so, you know, it does seem that you have a lot of work ahead of you here. >> yeah. >> i think look, we can only share a few things here today. so i would say from a what the work ahead perspective, i would say we, we do expect both honeywell aerospace and honeywell automation to be well capitalized investment grade. so we are very confident on that. and we'll share more details as we progress. but we are also going to do the work on strengthening each of these companies by doing the portfolio work. we continue to expect the m&a work. we have been very successful over the last 2020,

in the last 12 months, and expect to do that work. and, you know, we are also conscious of the work ahead point which you made. and, you know, we have done the separations earlier. we have done it well. we set up a program office. we are going to do the same. and we want to make sure that the core management team is focused on running the business, and the separation office works with the external consulting companies. et cetera. and help us walk through this process over the next, you know, 18 months or so, which is ahead of us. >> you know, vimal, it was quite a few years ago, seven, eight years ago. i remember i think it was third point and activist came at the company sort of, you know, saying, hey, think about breaking yourselves up. didn't happen then. obviously you were not running honeywell back then. but i'm curious what is different about now versus a number of years ago in terms of why the board chose this as the proper route? >> no. very good question. if you look at our last 7 to 8 years, honeywell added a great value in its businesses through its operating system. our

ability to have robust operating system supply chain transformation, commercial excellence, and we added a lot of margin expansion and growth across all our businesses. when i started my role about 18 months back, the first thing i did was simplified honeywell into three teams aviation, automation and energy. but one thing i realized was, as we started assuming my ceo role more deeply, that there is a more and more divergence between aerospace priorities and the rest of honeywell priorities. aerospace really has to focus upon supply chain recovery, capacity expansion going towards electrification, while automation businesses have to really think about digital transformation, adoption of ai, energy security. and therefore, it was imperative that separation creates a potential of growth opportunities with a focused, capital structure, focused management team, focused board. and that was the key driver for us that 2025 is different from 2017, and

therefore we feel very confident of the decision we have made today. >> it makes so much sense now. vimal, you own a company called quantium. i'm not a fan of some of the stock market. some of the stock market just presumes that everything goes right. we'll put men on the moon for $8 stock. we'll have a company that does that, does quantum computing, and suddenly it's worth $4 billion. it was worth $40 million a few weeks ago. quantum is a real company i know you're going to do something with it. why not just sell it for 25 billion to the public? because the public is unfortunately ill advised in what it does when it comes to quantum computing. >> i would i would love to monetize our stake in quantum as early as possible. the good news, jim, is that we are making all the technical progress we have committed. we are hitting all the milestones. we recently announced partnership with softbank in the in the same journey of, you know, continuing improving our commercial partnership. we did a fundraise about a year back pre-money, and we were valued at $5 billion.

that was almost a year back. we are going to do again, you know, more money raise, you know, in the next few months. the business is our market is really not ready for ipo. market needs more evidence of commercial success. we will demonstrate that. and i'm committed that, you know, we will monetize the value of quantinuum for honeywell shareholders earlier the better. and we are working feverishly towards that goal. >> no i hate to say it, but that could end up being worth more than aerospace in a market that is at times as stupid as it is right now. but you're not. you did what people should be doing. i think this is going to be ge number two. and i want to thank you so much to report for a really good you really laid it out in a way that i think many people will understand. so thank you very much. >> thank you very much. thanks for having me here. >> of course. >> jim, you're going to stick around, right? >> oh come. >> on. >> of course. why not? >> yeah. i mean, i have nothing to do. i got a photo shoot.

looking good here. you got the eagles on my plate. >> yes. we're going to talk about. >> that that we're not favored. but that's all right. >> there is another big interview coming up with the ceo of arm on their latest earnings. on the call he said the ai boom is continuing to fuel huge demand as we got a steady open s&p up 11. stay with us. >> arm is the. >> heart of everything that takes. >> place in any one of these. chips relative to the software ecosystem. there's just huge demand on asking us to do more sooner and help products get to market faster, because we're in. a phenomenal time in our industry where. the compute demands. are outpacing the silicon to serve it. >> most power players on wall

street rate nvidia a strong buy today. yet why, then, are so many legendary investors quietly ignoring that advice and instead selling the stock hand over fist? every billionaire on your screen has recently sold nvidia. some have offloaded millions of shares. and mark my words, this is bigger than nvidia. hedge funds are quietly selling all of their tech stocks at the fastest rate we've seen since 2016. it begs the question what do they know that you don't? my name is mark chaikin. i help build three indices for the nasdaq during my 50 years on wall street. that means i know how to recognize these signals from the tech market and exactly what they mean for you and your money. i explain everything in my new market briefing, including the truth of what's going on with nvidia today and the specific stock i recommend you buy. instead, i'll give you its name

and ticker when you visit the website below. nvidia has been the most talked about stock in the market, and for good reason. it's led the ai revolution that has taken the us stock market by storm since they announced their ai powered computer chip in 2023, nvidia's stock has been on a history making tear, officially surpassing microsoft to become the world's most valuable company. today, however, many investors are worried the tide is changing. nvidia's day in the sun may soon be coming to a dramatic end, and as a result, i predict a different, under-the-radar stock is primed for big potential gains from this moment on. to get its name and ticker 100% free, simply visit the website below.

>> invest with an advantage with cnbc pro. >> cnbc pro is for investors who know about the news and the trends, but then want to take it to that next level. exclusive access to market experts to help you identify opportunities in any market. >> unrivaled access essential tools. >> that's cnbc pro everything you need all in one place from a source you trust. >> go pro with a flash sale offer for a limited time at cnbc.com. slash pro flash terms and restrictions apply. >> good thursday morning and welcome to another hour of squawk on the street. i'm sara eisen with carl quintanilla, david faber and jim cramer joining us at post nine of the

new york stock exchange jim sticking around for a special guest. in just a moment you will hear from arm ceo renee hoss breaking down results with shares moving lower here in the early trading. but first, let's get to stocks which are higher. the s&p 500 up a little bit. the dow jones industrial average up seven and the nasdaq up 28 after a strong day yesterday. take a look at treasuries. we continue to see this bit in treasuries with yields a little bit lower. it's reversing a bit. but we're still below 4.5 on the ten year. we're at 4.43. the two year yield at 4.2. so kind of benign action there for 30 minutes here into the trading session. here are three big movers. we're watching pressure for the autos. ford is in the red after projecting mounting losses for its ev division. and tesla's euro deliveries come up short the numbers later this hour. apple supplier skyworks getting crushed right now, issuing a disappointing forecast for its mobile segment amid tougher competition. the company also announcing that ceo liam griffin is stepping down from his role

later this month. stock down almost 26% and then watch retail today. tapestry, ralph lauren under armor, peloton all on the move after results from all three names will go. we'll go over them in just a bit, but look at ralph lauren up almost 14.5%. we've got the ceo next hour, guys, as far as the data today got a little bit firmer. jobless claims pretty decent productivity numbers. again carl, i know you like to watch productivity up 1.2% was the last read which you know add it all up. you have to kind of smooth it out. and for the last year productivity picked up 2.3%. that was the most in 14 years. it's good news for the fed too because they've been trying to fight this inflation thing. and you know, that helps curb labor costs. and the surge in recent productivity has helped take some of the pressure off of, for instance, the job market and bring inflation closer to 2% without sacrificing unemployment. so that's i just wanted to highlight another good news number there. >> yeah. speaking of employment, i know you're watching estimates

for tomorrow's jobs number. goldman's above consensus at one 9170. >> is kind of consensus. >> now they're looking for maybe fires and cold weather to subtract about 20 k. and of course we'll have to juggle those benchmark revisions too. >> yeah there's a few factors here. so watch the jobs. it's a little early to see some of the question marks over the labor market. and by question marks i mean okay so what we learned what 2% of the federal workers took buyouts. >> the journal's reporting 40,000. right. 40,000. that would be about 2% that they were targeting 5 to 10. >> we don't know exactly how high that number is going to get and whether it will impact. obviously, it's early to come up in the realized data, but it's a factor, right, that we're going to watch. the other factor we're watching is immigration and the crackdown on illegal immigration, and whether that ultimately has an impact on the jobs report. none of this is necessarily for tomorrow's report, but i'm just bringing it up out there because kind of changing dynamics potentially influencing the job market. but the market has shown, jim, it's

very sensitive to job numbers, maybe over inflation numbers. now as a potential next move for the fed. >> it has to be because look we did you see the atlanta fed guided down yesterday. >> it was gdp. >> it was like i was so glad because i am just at the point where i'm thinking that. imagine if jay powell is like, look, i don't care at all about the president. i made a mistake. rates have to go higher. i mean, no, we need to see a break. but i've got to tell you if you're going to deport a huge number of people, we're going to be at a loss. >> on jobs. >> oh, yeah. jeez. >> i thought it was notable what treasury secretary scott said yesterday on rates because he was asked about interest rates. i mean, this is a guy who clearly knows the market because when. >> he said what i was saying earlier, you. >> focused on the ten year, not on the fed. and he's right to do that because ever since the fed has been lowering rates, the ten year has been higher, right. so that's what they're focused on. and the good news for him is

that, i don't know, the mid-january peak in the ten year was around 4.8. and now we're at about four. >> no one talked about it. it's come back down. it's kind of happy days are here again. and people just shrug it off. first i was thinking, is that the mainstream media, being oblivious to the fact that rates have come down? >> no, we're all over the rate story. >> we still got. we still got mortgages. >> okay. >> got it. we still got mortgages with a seven handle. >> yes we do, and we still have the housing stocks going down. they've not been good. they had a little day yesterday. they kind of moved up. >> look i think as far as the economy is going services were a little soft yesterday. they're still expanding mostly the data has been okay. and i'm following some of the call commentary. you know a lot of consumer names that i follow reported today. there's pressure out there i mean hershey, here's hershey, for instance. what did hershey say from the conference call? we'll continue to work with our commercial partners to improve trends in the in-store consumable business. that's an area of the portfolio that is driven by some of these macro pressures and the consumer pressure, particularly in convenience store. there's a little bit of downward category

pressure there. we see more momentum and upside in other areas. so pressure in the convenience store, low end consumer gets hit. in tapestry north america we expect revenue to be up slightly as we continue to support a healthy business there. >> one of them has a drug that 40 million people are going to take for 13 months, and it ain't ralph lauren and it ain't tapestry. when you buy a coach bag, do you say, well, you know what? i don't really have the craving. i thought. >> no, right. >> you have half a coach. >> bag clothing. it could stimulate more clothing buying. if you're a smaller size. >> but remember when someone said that. listen, we think the aircraft business is going to. >> be bad. that was my favorite. yeah. >> yeah that. >> was airplanes are going to have less weight on them and therefore it's going to save money glp one. but i. >> wouldn't say it. i mean no one wants to say it. >> they're talking about it though. >> at least they're saying off record. they're saying well you know maybe it started. >> no, they're saying smaller packages, smaller packages, more protein. >> well that was that was when walt laguardia, who was willing. >> at pepsi and hershey was talking about it today, too, a

little bit that there's been this shift toward a healthier conscious consumer and that it's picked up lately. >> brown-forman refuses to recognize that even though jack daniels tastes. >> like that's more challenged. >> yeah, well, i mean, like jack daniels, i was a reporter once, and i got off it at 7 a.m. and i would hit jd's green. that was the really cheap jack daniels. it's like, that's. >> who you're living in your car, though. >> you have to stay warm somehow. yeah, but the interesting thing is, is that that's. i was the only person in the world who thought jack daniels tasted great at 7 a.m, most people thought i should just go to waffle house. >> love waffle house. >> and that's why i mentioned it, because i know you do. >> and they're charging another. >> i listen to every word you say. >> on eggs. yeah, $0.50 a traditional egg. yeah. >> but you think they've ever been to a waffle? he can't hear me, right? >> no. your mic. >> is on. i think he's ever been to the white house. really? >> have you been. >> to a waffle? i have been to a waffle house. >> yeah. great. one in delaware on the drive to. >> well, it's a great lunch store is a total wine and more.

right there is biggest in the country. >> a documentary on worldcom and yeah, in mississippi i went to a lot of waffle houses. >> i like mississippi, but do you mind if we bring in armchairs? >> sure. >> bring in. we can talk all day about your mississippi trip. >> well, it was a long time ago. >> it sure was. >> welcome to brookhaven, said bernie ebbers to me. yeah. >> there we go. yeah. all right. >> excellent. thank you. what? >> arm armchairs are slipping despite an earnings beat that someone doesn't care about anymore because it happened so long ago. companies trimming guidance from previous forecasts. although i want to question that because that's the kind of thing you read and then you say, well, why did i read that? let's bring in arm ceo rene haas. hey, rene, how you been? >> hello, jim. >> how are you? >> all right. i know rene is a follower of a football team that's not going to be in new orleans. okay, so, rene, let's get some things straight here. every headline said the following. rene haas says that ai is not being adopted. very quickly. i went over your conference call line by line, i parsed it. i did not find that find that in any place. am i wrong? am i close reading of

your conference call? >> yeah. it sounds like i may have interjected something that i actually didn't comment. i would actually completely continue to say the opposite. as you know, jim, we continue to see incredible acceleration of adoption ai everywhere. obviously the data center is where it starts, but increasingly we're seeing it find its way into just about every single device smartphones, pcs, etc. i don't see any of that slowing down, quite frankly. i only actually see it accelerating. >> and i think that deep sea, obviously people had to ask that question, but i felt that the my favorite part of the conference call was about aws, the report tonight. but the transition away from the x86, which of course is intel to plus h100 to a grace blackwell gbx 200. this is the accelerant for arm, but it is also the accelerant for nvidia. you guys are joined at the hip. this made me feel very good about both of you. >> well, the key thing we're seeing taking place in the data

centers is two parallels. one is the general purpose compute. and that is where we're seeing just continued acceleration of arm adoption. on the call i mentioned graviton, aws's flagship product that uses arm greater than 50% of the new installations are arm based. that's really incredible. and 90% of their top 1000 customers use arm. that's general purpose compute, which continues to be very good for us. now you add i compute, and that's really all about doing these large language models in terms of training and then inference. grace blackwell, as you mentioned, that is the flagship product. blackwell is the gpu and arm is the cpu. so it's a great partnership. and as a result, we're seeing acceleration for both general purpose compute in the cloud on arm and ai compute. >> yeah. now you know nvidia is in the quiet period, which now seems to have lasted for like a year and a half. but you are like i said, you were very close to them. do you see that? it's the possibility that there is any slowdown whatsoever when it comes to nvidia?

>> you know, i don't really see a slowdown in general. and here's why. when you look at these large language models that need to be trained and these are the frontier models, if you will, these are the chatgpt fours. the big gemini runs. these are increasingly requiring lots and lots of power, lots and lots of compute. and you just see by the capital spending that google has talked about that microsoft has talked about, that meta has talked about it's not not slowing down. and people talk a lot about deep seek and these new models that seem to be doing the work that was done in years before or months before, in days people need to remember what's happening is they're distilling, which basically means building on the frontier models that have been created. it doesn't mean the frontier model creation goes away, but it does mean that improvements can be made fast. so net net no, we're not seeing a slowdown of any kind. >> excellent. now, at the beginning of your course, you talked about stargate and how you use is going to be it's going to be good for you. but i

also think there's the possibility because softbank has a huge position in you, that perhaps they need to sell you down to be able to have the money for it. what's your take on both thoughts? >> stargate is an amazing opportunity, generally speaking just for compute. gigantic infrastructure project $100 billion right away, $500 billion over time. that's going to create a huge amount of opportunity for technology innovation. we are named as one of the technology partners. i will say that we are the only cpu platform that was named there. so arm is the cpu of choice, the architecture of choice, and stargate. and i think going forward you're going to see a huge amount of investment and opportunity that i think we can capitalize on as far as how it's going to be capitalized. i can assure you there's a lot underway there that would not be announced on the in the white house 28 hours after the president was inaugurated. if it wasn't quite real regarding selling down arm, i'll let masa talk about that. but i you know, he loves arm and

he's very long on arm. >> renee, it's david, you know, obviously we spend most of our time talking ai and data center with you, but it's not as though the cell phone business isn't still a very important one for your company. what are you seeing there in terms of trends? you know, there are some who believe the decline. slight decline in the stock prices is perhaps a reflection of at least some concern overall on the growth of that business. >> yeah. thanks, david. yeah, we are large and smartphones. we're we're large in everything. we're in the data center, automobiles, iot as you know. so we're everywhere. you know, smartphone business for us is very, very healthy. we converted to what we call our compute subsystems and version nine. so our royalty growth year on year is 23%, which is far beyond what the market is seeing. but broadly, what we're seeing in handsets is still very good growth in the premium segment where people want these ai features, they will upgrade. and again, as i said, we are growing much faster than the market 23% year on

year. i think the market was at single digits. so for us, when the premium market grows, it's actually even better for us because our our royalty rates are the best in the high end. >> speaking of that market as well, of course, we followed closely your dispute with qualcomm, went to trial in december. you guys lost in their conference call. qualcomm said you recently notified them. you're withdrawing your october 22nd notice of breach, and indicated you have no current plans to terminate. the qualcomm architecture license agreement. is that correct? and if so, does that have any impact at all on your own earnings plan? >> that's all correct. and going forward, no, there's no impact whatsoever. as you mentioned, the you know, the trial ended up in a mistrial on one of the verdicts and the two other verdicts, as you just mentioned. but right now, it doesn't really change anything for us in terms of our outlook. our forecasts remain as is. >> all right, renee, there's a good in your deck, which is excellent. page 11 royalty

gaining share in a massive market. you're crushing it in mobile consumer electronics. you're taking some cloud compute. what is going on in cal compute. it's a small it's i know you took up some, but i'm trying to get what these different groups are doing because i'm not getting a sense of cloud computing. consumer electronics are doing all that well. >> well, for us, cloud compute is doing really well because we're gaining share. the major platforms such as microsoft using cobalt, google using axion. and we've talked about aws, we're growing faster than the market because we're gaining share. and then when you layer on top of it, what we talked about with the ai data center with with nvidia, we're gaining share. so similar to the premium smartphone market, where the royalties for us are much better than the market, we're growing faster than the market in cloud because we're gaining market share. >> all right. just not to be a pinata oriented person, but the x86, the intel business is intel is going away.

>> no, no, no, they're not going away. architectures take. >> a long. >> time to they take a long time to go away. but i'm super happy in terms of the progress that we're seeing at arm. the windows on arm platforms are doing well. i think you'll see more entrants quite soon, which will expand the platform base and choices for users. and as i said, with with ai proliferating, it's only a good thing for us. and maybe i'll talk a little bit about this deep set, because there was a lot of folks speculating about what that might do for end demand for arm. it's a great thing because you end up having much more efficient models, and more efficient models means you can run inference in more endpoints. and the key thing in these endpoints. and when i talk about endpoints, these are your earbuds, your mobile phone, your pc. these are power constrained devices, meaning you've only got so much electricity battery to run all the applications. so if i can run in a more efficient way at these endpoints, that

just drives demand. so it's great for us. >> yeah, i'm glad you pointed that out. i mean, a lot of people just keep talking about what does it do, what it's do you actually spelled out what it does and how good it is for you? but that's because you're kind of a coherent guy who understands where the money is. i want to thank rene, who's always a great explainer from arm. great to have you on the show. >> thank you. jim. go, eagles. >> go, birds. >> i'm glad you mentioned that, jim, because this is our last chance to chat with you before you head down. >> yeah. i'm trying to figure out whether i wear my ridiculous, obnoxious green stuff or just show up on the eagles plane trying to look maybe with brian. >> you should wear a jersey. >> a jersey. why? because i'm new jersey. no, i have a number 60. i don't know if you know, number 60 was chuck bednarik the last guy to go both sides? i am so excited. it's crazy. i'm as excited as my wife is. >> not the cover of the inquirer in philly today looks at the new

generation who's used to three trips in seven years. >> you know, i look, i'm a member of both. i've been a season ticket holder for almost 30 years, and i spent a lot of time having beer cans thrown at me because i was. and i've thrown batteries myself and i've thrown snowballs. the batteries are. >> really, really harmful. >> i look, i had i had to punch a guy who hit my father. he had trouble. it was the green bay game. he was saying a lot of bad things about mcnabb. it's a good crowd there. >> yeah. >> oh, yeah, it's a really good crowd. i hit a guy from the niners. he turned out he was. he worked for twitter. >> really? >> yeah. well, he might. >> be like that in louisiana. >> well, it's. >> letter x like the vet. >> no, i mean look, there's a we have a bad crowd. we have a very bad crowd. and that's okay. i like it that way. i threw a camera at my wife. that guy found out what it was like to have a fist sandwich. >> there you go. there you go. yeah. all right. although. >> don't get. >> any fights. you may not want to engage in fisticuffs that often anymore. jim. >> i like to. don't challenge me. >> yeah, yeah. >> and then, of course, next

week, your birthday, we won't be able to celebrate with you. but happy birthday in advance. >> i got 15 guys from summitt going down. we're going to spend a little time in the bahamas. >> that sounds dangerous. >> it's. yeah, it will be dangerous because i've got. i am so blessed to have great friends. it's kind of jimmy stewart like in it's a wonderful life. very happy. >> can't believe how old you are. >> gosh, jeez. just shut up. >> watch out. the fisticuffs can happen right now. >> i mean, he's going to set me up with his. with his mother. just married. jeez. >> when you leave, he'll be the oldest on set. don't. >> know why. okay. >> for the youngster strikes again. yeah, yeah. >> i'm standing up for you. >> you got a lot going on. super bowl, 20 years, mad money. amazing. >> my 10th anniversary, 70th, and of course, the anniversary of the party that you'll be going to. right? yes. the best day ever. remember, remember, lisa had 508 people at our wedding, and she did. and she did it herself. 508 people were her closest friends. >> it was awesome. and the second wedding was great. >> but i'm very i'm very

grateful for the network. i'm very grateful for you. thank you. and i have a lot of things that are troubled in my life, but it ain't here. >> awesome. >> happy birthday. >> have a great week. >> we'll miss you. >> i miss you guys. >> have a great time, jim. thank you. >> thank you very much. >> as we go to break, look at the roadmap for the rest of the hour. tesla shares now a 25% drawdown weaker today on those european sales. we've got details. >> plus speaking of tech amazon is the next of the mag seven that's going to be reporting earnings. and we're going to get you ready for that print. >> and the ceo of hilton will join us this hour. shares surging on a q4 beat. big show still ahead. squawk on the street. we'll be right back. dow is down 40 but s&p and nasdaq higher. >> is this how you're. >> hoping to retire. >> well hope isn't a good retirement strategy. you've worked for a comfortable retirement for. years now. you need to plan for retirement

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make your dream office a reality. >> tesla with some losses today and this brings their shares now 25% off recent highs. our phil lebeau has been tracking the action. a lot of coverage of these european sales phil. >> yeah. >> and the thing. >> to. >> keep in mind, carl, is. >> that this is just. >> one month january. and these are deliveries in different countries. in europe. >> now collectively. >> when you. >> look at the percentage declines here, you'll sit there and say, oh my goodness, nobody's. >> buying a tesla anymore. >> in europe. keep in mind it is one month. these are small numbers. >> nonetheless, it. >> is getting a fair amount of attention. it has people saying, well, if they're not buying tesla, what's the reason that they're not buying tesla? it

could be a number of factors. remember, the new model y is going to be coming out. could be people waiting for that. could be people who are seeing greater competition. looking at perhaps a chinese ev, the german automakers, their ev sales were up. that's why when you take a look at tesla versus byd, the fact that tesla is facing stiffer competition in germany and not just germany, all of europe, they're facing stiffer competition. that's why byd is a pretty good proxy here for all of the chinese automakers who, by the way, their sales in germany in january were up 54% collectively. in terms of total deliveries for tesla, it was down slightly last year to just under 1.8 million vehicles. california in the united states saw sales of teslas drop 11.6%. now people are going to look at this and they're going to say, well, look, this is as good as it gets for tesla. the fact of the matter is, as you take a look at tesla's shares, the fact that they go higher is that it's a trade based on elon musk robotaxi. his access to the trump administration. finally, i want to pivot just a bit, guys,

and i want to talk about ford. rough day for ford shareholders as the company coming off of releasing the q4 results after the bell last night. look, they beat on the top and the bottom line. nobody cares about that. what they care about is the fact that their 2025 profit, it's going to be substantially smaller than what the analysts were expecting. and also compared to this year, this year, i think, or last year, they made 10.2 billion. they're expecting between 7 and $8.5 billion. so there's some pressure there on ford as the company navigates lower industry volumes. the fact that pricing is going to be under pressure here in the united states, just not a good setup right now for ford. >> bill, the new york times is pinning it or questioning whether it has to do with the fact that elon has been more vocal and more disruptive in the political scene there, particularly in germany and in the uk. is there any evidence of that? no. >> there's no evidence of that. are there probably anecdotal examples where somebody was interviewed and they said, yeah, i don't like what elon is

saying. i don't like him meddling in our politics. yeah, there may be that, but there's nothing concrete that you can sit there and say, look, he stuck his nose in their business. and now the people are saying, i don't want a tesla. there's just not any hard proof of that. >> so back to ford. you know, it's been kind of i'm looking at five year chart. i mean the last four years. nothing much. yeah. ford family still has control through the b-shares. or at least, you know, significant voting control. yeah. i don't know what's what's next that's going to get you know, that's going to get investors excited here. >> that's the problem david. you look out at ford and on the horizon. what do you get excited about. do you get excited about. they believe that they're going to have a true lower priced electric vehicle that will win over buyers. but that's not coming until 27 at the earliest, more likely 28 in terms of when you finally see it. we don't even know what it is at this point. we know that they've been

working at at their skunk works facility out in california, and jim farley is very optimistic about it, but otherwise, there's not a whole lot to get excited about when you talk about ford. they have made some smart moves, both in terms of hybrids. they're going to start pushing for extended range vehicle options for some of their models right now. and the commercial vehicle business remains rock solid. that's really the strength of ford right now. it's hard to get investors excited when you say, look at the commercial vehicle business at ford. >> okay, down another 7%. thank you. phil. phil lebeau, speaking of car parts supplier o'reilly automotive. automotive. another name in the space to watch today. soft margin guidance hitting the stock. but it has been a big outperformer this year. it's given a little back today. plus more on the numbers. sending eli lilly and bristol-myers in opposite directions this morning. details directions this morning. details af -what've you got there, larry? -time machine. you gonna go back and see how the pyramids were built or something? nope. ellen and i want to go on vacation, so i'm going to go back to last week

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with them. for over 25 years, we've been committed to rias, and that's why i chose tradepmr. >> what happens when you drink rise mushroom coffee? you start to feel your mood shift. that's a reishi mushroom, a superfood mood booster that reduces stress. that's much better. and who doesn't want better to start right now? >> 16 million americans suffer from chronic back pain, the sixth most costly health condition in the us. meet creative medical technology stock symbol sells on the nasdaq. creators of stem spine, a regenerative medicine using stem cells to help fix the multibillion dollar chronic back pain problem. stem spine was shown to be 87% effective at improving mobility and reducing chronic back pain, and that chronic back pain, and that could be worth a fortune. the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family,

we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways. >> cnbc live ambitiously. >> take the bull by the horns every morning with gyms. top ten. the biggest headlines, earnings reports and gyms hot stocks right to your inbox. sign up now for free at cnbc.com. slash top ten. >> welcome back to. >> squawk box. squawk on the. >> street i'm. bertha coombs with your. >> cnbc news update. justice department attorneys agreed. >> to temporarily. >> restrict staffers associated with elon. musk's department of

government efficiency from accessing information in the treasury. department's payment system. it comes after a group of union members and retirees sued the treasury department, claiming the access violated federal. >> privacy laws. >> meanwhile, president trump doubled down. >> on his controversial. >> plans for the. >> gaza strip. today, he. >> said on. truth social the enclave would be turned over. >> to the u.s. >> by israel. >> at the end of the war. israel did not immediately weigh. in on his latest comments, and. >> the panama. >> canal authority is disputing state. department claims that. vessels from the united. >> states would. >> be able to cross the crucial waterway without paying fees. such a move. >> would save. >> the u.s. millions of dollars each year, but canal officials say they have not made any adjustments. david. >> yeah, so it was about 30 million bucks. of course, the pentagon is 950 billion, but still always like to save

taxpayers money. bertha. thank you. eli lilly and bristol-myers headed in opposite directions. that is, their stock prices are this after both reported earnings. let's get over to angelica peebles. she has the details on both for us. angelica. >> hey, david lilly giving a 2025 adjusted profit forecast. that's in line with wall street's expectations. the company is trying to get back on track this year after revenue came up short two quarters in a row. lilly's cfo, luca montorsi, telling me that launching its obesity drug in international markets like china and india this year will play a big role in that. the company is slowly starting to roll out the drug around the world, and will really start to ramp up in the second half of this year. in the us, lilly expects growth of glp one to be similar to last year. the company does expect sales of its older glp one trulicity to shrink montages, telling me that new patients are going on manjaro instead of trulicity. so that's what's happening there. lilly also saying that we should get phase three data from one of its next generation drugs. read

a true tide this year that's slightly ahead of schedule. and then on tariffs, montorsi expects very, very minimal impact. shares of bristol-myers squibb's, like you said, are under pressure today. the company is giving 2025 sales guidance about $2 billion below consensus. bristol saying that generic competition going to going going to hit a few of its key drugs like revlimid and its newer drugs, won't be able to make up for that decline quite yet. the company is also planning to cut another $2 billion in cost by 2027. they're already on track to cut 1.5 billion by the end of this year, so we'll have to see if they're able to turn things around. david. >> a busy morning for you. angelica. thanks. angelica peebles still ahead. amazon is expected to pass walmart tonight in quarterly revenue for the first time ever. more with one analyst who does call it his top megacap pick after the break. >> real time exchange sector sword is sponsored by sector spider e etfs.

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today at forhours. com. >> amazon. of course tonight after the bell. one of just three seven names still positive on the year on this volatile era for tech. google is coming off the worst day since january of last year. here to break it all down through his use of sculley calls amazon his top megacap pick for the year target of 270. good to see you again. what's the most important number tonight? is it going to be sort of revenue centric or is it all about capex, for example? no, i think in the case. >> of amazon, it's. >> going to be revenue first. and the components of that. >> and then certainly capex. >> but i think. after google, after meta. capex is going to be a big number. questions. >> just how big? we're much. higher than. >> consensus that. >> we can talk about that. >> well, yeah, i mean, we've seen some double digit revisions from some of their hyperscaling competitors. where is your number? i'm at 90 billion. i think consensus is around 84. >> 83 somewhere. >> in that vicinity. and i think the vast majority. >> maybe not the. >> vast. >> but the majority of that

meaning, well, north of 50% of that is basically going to be going. >> after ai investments. >> maybe project kuiper. >> we haven't really heard a lot about that recently, but that's a 10 to. >> $15. >> billion, at least capex projects. >> which they have not. >> really talked about much, but we think is going to start this year. so we have those two big components. but i will certainly be the biggest component. >> why the top? why is it your top pick? well. a number of things. one within. >> the mega-caps, you don't really have a company like amazon, which has so many kind of growth drivers that, you know, have very nice secular growth trajectories to them. the first is obviously what you're doing with marketplace, right? e-commerce. amazon already owns about 4,849% market share of us e-commerce. that's our estimate. and we think this quarter when they report tonight, they're going to show that they're growing faster than the market. it's hard to own half the market. and yet you're growing

faster than the market. second, the digital advertising business ten years ago they weren't in digital advertising. now they're the third largest. we think they're going to grow around 20%. that's against an industry that's growing around 12, 13, 14%. so they're growing. share there. and obviously last but not certainly not least, aws. the bogey there around 19%. we think there is a chance that we start seeing acceleration in growth in aws. we're not modeling it, but there is a chance that they can actually start showing that in 2025, which would be materially impactful to margins as well. >> it's going to be fun to unpack it tonight. yousef. hopefully we'll talk on the other side. appreciate it very much as always. yousef scully. >> thank you. thanks a lot. >> still ahead ceo of hilton breaking down new numbers there. breaking down new numbers there. he joins us when the temperature drops you've got two choices. close your eyes and think warm thoughts. or open your eyes and get out here.

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since bottoming out last summer. but can the run continue for a company that does have some supply chain exposure to china? in an age of new tariffs and trade uncertainty? we are going to speak with one trader who is still bullish on lulu and why she is seeing more upside ahead. tune in to our market navigator tune in to our market navigator segment carl: believe me, when it comes to investing, you'll love carl's way. take a left here please. driver: but there's a... carl's way is the best way. client: is it? at schwab, how i choose to invest is up to me. driver: exactly! i can invest and trade on my own... client: yes, and let them manage some investments for me too. let's move on, shall we? no can do. client: i'll get out here. where are you going?? schwab. schwab! schwab. a modern approach to wealth management. i had the worst dream last night. you were in a car crash and the kids and i were on our own. that's awful, hon. my brother was saying he got life insurance from ethos. and he got $2 million in coverage, all online. life insurance made easy. check

your price today at ethos.com. gold bond believes touch says everything. it says... i see you. i feel you. and...i know you. gold bond. get in touch with irresistibly touchable skin. strong travel demand. the stock is up more than 5.5% 11% for the year now. joining us is hilton worldwide ceo chris nassetta. good morning chris. welcome. you talked on the call about favorable trends continuing. tell us a little more about what you're seeing. >> yeah. >> thank you sarah. >> and hey. >> david and carl nice to be with. >> you guys. >> we're really. >> pleased with how we finished last year. obviously the numbers were good, but what was really driving it was sort of all of our. >> segments. >> whether that's leisure travel, business travel, meetings and events did better than we thought. we had the best

year that we've ever had in our history in terms of unit growth. we opened more than two hotels a day last year in the world, and all of that drove really. solid bottom line performance. we had record levels of ebitda, 11% growth in ebitda. and importantly, your question like how does that translate over to this year? you know, we feel really good about how it's translating. you know, we're early in the year, but the trends across all the major segments from a same store point of view. appear to be very solid. and we finished last year with the largest pipeline that we've ever had in our history. we have 500,000 rooms of hotels around the world and our development pipeline, so we feel really good about unit growth as we come into 2025 and for that matter, as we look forward a few years. and so, you know, we have a lot of optimism, obviously pleased pleased with last year, but focused as as most people

are on how that all is going to translate into delivering another great year in 2025. >> when it comes to growth, you i think you've been focused on luxury lifestyle, right, chris? that's where you've leaned in. is that paying off? >> i would. >> say is i would say we've been focused everywhere. so last year, about half of our growth came in luxury and lifestyle. we signed a huge number of deals in that space. but you know, we're we're really a very balanced growth story. luxury and lifestyle is really important everywhere around the world. but so is the mid-market. and if you look at, you know, where the growth is going to come from over the next three, five, ten, 20 years. in terms of the numbers, meaning, you know, the room counts, growth, opportunity around the world, it will it will come more from the mid-market just because it stands to reason what's going on in the world is middle class growth, and what middle classes

can afford are mid-market brands. and so it's all important. i mean, you know, at the lowest level, lowest price point spark, we have terrific growth. and that, you know, that is that is being extended all over the world. now as we as we move that brand into the other regions of the world all the way up to waldorf astoria, where we're going to have some incredibly iconic openings for waldorf this year, and most importantly, in near and dear to your guy's heart. the waldorf astoria in new york is going to open this summer, which we're very excited about. >> finally. well, how's pricing? >> finally, finally. yeah. well, to take you on a tour, it's extraordinary. >> i remember the old walter. how overall does pricing look with such solid demand? what's the outlook there? >> pricing is strong. you know i would sort of say you know so goes inflation broadly so goes pricing. you know in our industry you know so i think we expect the year that we'll have not not extraordinary pricing

growth but i'd say modest pricing growth sort of in the 1 to 2% range, you know, sort of in line with broader inflationary pressures sort of diminishing, but but strong because as you point out, demand is strong and every segment will be a little bit different. i'd say meetings and events, given the demand there, you'll see much greater rate pricing power. but broadly across all segments, we see pricing going up. >> chris, is the industry, would you argue, in an expansionary capacity mode at the moment? >> it it is, but it's karl i think that's you karl. it's a constrained it's a constrained environment for obvious reasons in most places around the world. but focusing in the biggest hospitality market in the world, the united states, there's a lot of people that want to develop. and certainly we're getting more than our fair share on the development side. but the cost

to build hotels has gone up in a significant way. obviously, interest rates are still relatively high. financing is available, but not, you know, in significant ways, although that is improving but still somewhat constrained. and so, you know, in a way, the industry is sort of in a very sweet spot, meaning demand growth is quite good, as i already described. and supply growth, capacity growth, while people want to bring capacity on and we are trying to expand as an industry, it's running at historically low levels of about 1%. so that that creates a very healthy environment for the industry. now i'm here to talk about hilton. the important thing is we do better than than the 1% because our brands, we have 24 brands. so the best performing brands in the industry, we're more financeable than than, you know, our competitor brands broadly. and

so we get, in the end, a disproportionate amount of the capital that is available for both new builds and conversion opportunities. and so that's why when you see us post a number last year, we're growing last year at 7.3%. the us market grew, you know, at at 1%. so we are you know, we have sort of a multiplier effect that's a result of, you know, unique, you know, sort of attributes of hilton, which is we attract capital to build hotels because people want to get higher returns. and we have been delivering higher returns for our owner community. >> there you go. all right, chris, listen, it's going to be the final question, i think. but, you know, there was some time spent on the call. it's david, by the way, on china. we all think about the consumer there being fairly weak, but you're seeing a lot of outbound into asia from china travel. are you a beneficiary of that. >> we are definitely you know, china is relatively weak. we do

think china business in china same store will be up but but modestly so. but chinese travelers are on the road in a big way. they've china has opened up a bunch of inter asian visa free corridors and they are taking full advantage of it. now that has the impact of keeping growth tepid in china. but broadly, the chinese traveler is getting out and about. so beneficiaries of that are japan in a big way, southeast asia even australasia in a very big way. and of course we have big we have a big diversified global business and we're in those locations. and so we are definitely a beneficiary of the outbound business. >> so geopolitics not hurting any of the international travel because that was a theme. >> not not not not at the moment. not at the moment. no i mean i know with all the noise in the system, you would think, you know, that, that it's sort of it scares people into not traveling. but that's, that's just not that's not happening. i mean, you know, it's funny. over

the last 20, i've been doing this a long time, decades. and you've had big things, you know, you know, pandemics, nine over 11, great recession. what we've found over time is that our customers have become quite resilient. you know, wars around the world, in the middle east, obviously eastern europe now in those little pockets, there's obviously lasting impact. but broadly, we, you know, the customer base seems to recover quite quickly and be really resilient. so far that's what that's what we're seeing. >> chris. very upbeat report and commentary from you. thank you for joining us. >> yeah. thank you for having me. >> always the stock reflecting it at a high chris nassetta of hilton a slew of positive reports out of retail this morning, including ralph lauren, which is at the very top of the s&p 500 right now. we're going to speak to their ceo next hour on money movers. also coming up, the big easy getting ready for the big game. more on the battle over an estimated billion dollars in sports bets for the

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expect will be record breaking wagers and increased competition. contessa brewer is here. she has more for us from new orleans. contessa. >> hello there david. you know new orleans is bustling. america's sportsbooks are betting that the wagering this year will set another record. the american gaming association estimates $1.39 billion will be bet legally on sunday's game. last year, when they gave the estimate it was more than $23 billion because they wrapped up office pools. the illegal bookies, the offshore operators. that means that really sportsbooks are facing an intense field of competition for gambling dollars. so when you look at this year, you have cash and crypto.com offering those prediction market trades. robinhood just this week yanked its offers on the big game. plus, there are sweepstakes style gambling and fantasy sports, all offering bettors a way to. add a little additional excitement to the big game. i actually talked to kansas city chiefs quarterback patrick mahomes about whether the boom

in gambling is good for the game. >> he gets people watching. i think that that's good for the sport, but at the end of the day, i want people to realize that it's a game that you play on the playground for recess and the stuff that you just go out there and give everything you love. and i think that's what we try to do on the football field. and i think that's everybody on that football field. >> around new orleans. fanduel has big advertising up blanketing the building. caesars, of course, has named the superdome and is unveiling nearly half $1 billion in renovations on the casino sportsbook hotel here, all for one of the best opportunities for customer acquisition all year long. right now, the kansas city chiefs one and a half point favorites. and tomorrow it is a gaming all star lineup here from new orleans right here on squawk on the street. i'll bring you the interview with draftkings ceo jason robins. you will not want to miss that, guys. send it back to you in new york. >> wow. real quick you know contessa again. so what do we think that the overall is there an estimate in terms of what the

overall amount bet on involving this game will end up being. >> 1.4, 1.4 billion. and then we wait and see how it comes in. right. but on the legal sports books. >> got it right. not to mention just your are there any bookies anymore? do they still exist? i don't even know. >> yeah, yeah they exist, but i don't report on them. >> no. all right. yeah, of course not, contessa. thank you. contessa brewer from louisiana. we've got a s&p that's up 0.08%. nasdaq also in positive nasdaq also in positive territory. a lot more market power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley. ♪♪

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