>> good morning everybody. >> welcome to squawk box. >> right here on cnbc. >> we are. >> live from the nasdaq market. >> site in. >> times square. >> i'm becky quick along. >> with joe kernan. and andrew ross sorkin. >> we're back at home downstairs. >> we are back. >> in the studio. >> back in beautiful. >> times square. >> times square. times square. >> nothing much happening, snowy so far. snowy. >> times square a little bit. no elmo sightings yet. although i. >> saw him. >> on a commercial. >> i did too. that was a great commercial, actually. >> was he on? >> it was. he was. >> talking to. >> roger federer. >> roger federer. roger federer. >> which was. >> very clever. >> because on doesn't. >> look like. >> on it looks. >> like he's right. >> he's like cq or qc. >> qc. qc. >> yeah it does. he's right. >> this morning the things. >> are looking up for. >> the markets. you're going to see some green arrows across the

board for the us equity futures right now. it looks like the dow has indicated up by just over 150 points. >> you've got the s&p. >> futures up by just over 25. the nasdaq indicated up by just over 140. this does come after a down day on friday. >> with significant. >> enough declines that it pushed us into negative territory for all three of the major averages. it was the first week. in a row down for the dow, the second for both the s&p and the nasdaq. and we'll continue to see where things head this morning. if there's not huge moves to the downside, you're still talking about the nasdaq down by a little over 3% from its all time highs. >> the dow and the s&p. >> 500 only down by 1%. >> or so from. >> all time highs. but if you're watching the transports, there's a little more activity that's happening there. i think at this point they may even be down by. >> 11. >> 11.5% from their all time highs. >> so keep an eye on that. keep an eye on the small. >> caps, which. >> are down by. >> about 7.5% from their all time highs. treasury markets something to watch too. and there was a lot of commentary. president trump, the first president to go for a sitting president to go to a super bowl. he made a lot of comments. >> on the way there.

>> and we're going to talk about some of those things. but one of the things he said was there were some really interesting things that the doge. team found at treasury. no one's entirely. sure what he was talking about just yet, but the implication could be that there's not as much debt as possible. it's another reason to watch treasury markets today. right now, the ten year is sitting just below 4.5% at 4.49. the two year is at 428. >> meantime. >> president trump expected. >> to announce a. >> new 25% tariffs on all. >> steel and. >> aluminum imports into. >> the u.s. >> president gave a. >> preview of what's. >> to. >> come yesterday. >> on. >> board air force. one on his way to the super bowl. >> we'll also be announcing. >> steel tariffs. >> on monday. >> i think. >> tomorrow. >> monday. yeah. tomorrow. >> what time. >> will those go. >> on everybody. steel. >> including canada. >> and mexico. any steel. >> coming into the. >> united states is going. >> to have. >> a 25% tariff. >> what about a new aluminum to. >> shares of. >> american steel and aluminum. >> producers are rising. >> this morning on the back of that news.

>> you can look right there up. >> close to 10% in. >> some cases in. >> cleveland cliffs close to 10%. >> united states steel corp. >> a little. >> over 8%. >> largest sources. >> of steel imports are canada, brazil and mexico. >> now, president trump. >> also planned to announce. >> reciprocal tariffs. >> on tuesday or wednesday. >> these will apply. >> to all u.s. trading partners. and while. >> we're on the. >> topic. >> if we will, of. metals nippon steel. >> not commenting. >> on president trump's statement on friday that the japanese. steel maker the steel maker's bid. >> rather, i should say. >> for u.s. steel. >> would. >> be in. >> the form of an. >> investment instead of a purchase. >> the japanese. >> official saying that nippon steel is proposing a bold change in plans. >> when it. >> comes to. >> u.s. steel. so we're going to have to. >> watch and. >> see what. happens there. >> yeah. >> as expected, china imposed retaliatory tariffs on the us. the tariffs will hit about $14 billion worth of goods. beijing taking taking. >> that action. >> after the us. >> added a 10% tariff on.

>> chinese products. >> and china. >> in this case is targeting liquefied gas. >> coal, crude. >> oil and farm equipment, along. >> with some automotive products. oil prices, though moving higher. >> this morning. >> taking a look. >> at caterpillar and. >> deere. >> right now. >> premarket, you can see. >> that the stocks. >> either they're. >> not trading or they're going to have a live report. >> from beijing. >> later this hour. >> and the consumer financial protection bureau has been ordered to halt all supervision. omb director and now acting cfpb director russell vought telling employees to work remotely at the headquarters in washington, which has. >> been closed. >> on saturday, vogt. issued a notice that demanded employees cease all supervision and examination activity. vogt also notified the federal reserve that the cfpb will not be taking its next draw of unappropriated funding. last week, treasury secretary scott bessent called on the agency to not start any new investigations or approve or issue final rules.

>> now on to doge. elon musk. >> called for. >> the. federal judge to temporarily. >> blocked his. >> team from the treasury. department's payment system. >> to be impeached. the court. >> precluded officials. >> without proper background checks and security clearances from accessing. >> the payment. >> system through at least. >> next friday. >> including political appointees and special government appointees. affiliated with musto's team. >> 19 democratic. >> state. >> attorney generals. sued president trump. >> they say. >> that he. >> violated constitutional law by giving musk access. >> to the treasury department. >> vice president jd vance. >> suggested the. >> judge acted. >> illegally and. >> is. >> not allowed. >> to control the executive's. >> legitimate power. so that is a legal case. >> that's going to continue. >> all of this is going to play out in the courts. >> all of this is going to. >> play out. >> in. >> the courts. and as we've said, if. >> it's if it's a. >> read only situation, you'd. >> hope that that would actually be. good because we got to. get we got to get to the bottom of all of these costs. >> the bad. >> news is, if.

>> you think that they're being taken and potentially becomes. >> a national security threat. >> in. >> some some. >> way, or gets. >> put into some kind. >> of. >> ai system that then gets you. that's where. >> there are questions about security with it. and then there are questions about whether the executive branch has the authority to shut down offices or appropriations that have come from congress. >> and so. >> this has been a long running battle. >> but to me, how does this play then? this only go till friday with the judge said. >> and yes, and. >> there are. and then what? >> there are. >> other lawsuits that have been brought, and eventually it's going to be taken up by the supreme court would. >> be. >> my guess. >> right. >> well, what happens friday if. >> there's some. >> other there's some other lawsuit i think that is pending that or that is expected to come up. so but but yes. you will anticipate that all of this will be decided by the supreme court. >> all right. let's get to some other headlines from president trump. in an interview ahead of the super bowl. eamon javers joins us. now with more. hey, eamon. >> hey good morning joe. >> you're right. president trump was very busy yesterday. >> including this interview with. fox news's. >> bret baier that aired. >> in the. pre-super bowl. hype

on fox yesterday. >> bret baier. >> asked the. >> president if he trusts. >> elon musk. here's what he said. >> trust elon. oh. >> he's not gaining anything. >> in fact, i wonder. >> how he can devote the time to it. he's so into it. but i told him, do that. then i'm going to tell him very soon. >> like maybe in. >> 24 hours to go check the department of education. he's going to find the same thing. then i'm going to go. go to the military. let's check the military. we're going to find billions, hundreds of billions of dollars of fraud and abuse. but i campaigned on this, bret. >> and separately. >> from that interview. >> as you guys have been talking about, president trump talked to. >> reporters on air force. >> one and said he is going to put those tariffs on steel and aluminum. 25% on inbound steel and aluminum. >> from anywhere in. >> the world. he also said he's going to announce reciprocal. tariffs this week on countries that tax u.s. imports. those, he said would go into effect almost immediately. >> and then, becky, you.

>> were mentioning this moment, i think we want to play this soundbite for you because the president raised an issue with treasuries, and we're. >> not exactly. >> clear on what he's talking about. but take a listen to this, because this could have some real. impact for the treasury. department and maybe the treasury market later on today. here's what he said. >> we're even looking at treasuries. there could be. >> a problem. >> you've been reading about that with treasuries. >> and that could be an interesting problem, because it could be that a lot of those. >> things don't count. in other words, that some of that stuff that. we're finding. is very fraudulent. >> therefore maybe we have less debt than we thought of. think of that. >> so very fraudulent. the president says something in the treasury market or the way treasuries were issued. he's suggesting some of the doge team has found some kind of issue with fraud in the treasury market. and that might suggest that the us has. less debt than we thought of. not clear what

the president's talking about there or what that could look like, but it just raises the question of whether the president is. >> going. >> to try to cancel some. >> u.s. debt. >> arguing that the initial treasuries that were issued were in some way fraudulent or there was fraud in the treasury market. that's going to raise a lot of questions for scott bessent and the team over at the treasury department today. a lot of people in that vast liquid treasury market are going to have some question marks over their heads. listening to that and trying to figure out what the president meant throughout the day today. guys, back over to you. >> eamon, i have a complete curveball. >> question for you. it's super. >> bowl related, but it's money related. >> and it's. >> trump related. >> so i thought it was very exciting. >> to see the. >> president at the super bowl. >> and my kids thought it. >> was exciting. i thought it was very exciting to see the eagles win the super bowl, by the way. >> and then. but then. >> one of my sons. >> said to me, why. >> is the president never. >> gone before? and so we start to look this up. and apparently many years ago, there was a question about the cost of going to the super bowl because of

the. >> amount. >> of. >> security that's required. >> and we were trying. >> to do the math. >> can you. >> help us do the math. >> of what do you think it. >> costs. >> given that we're. >> talking about doge and everything else? and look, we can make a subjective call about whether it's worth it or not. i actually think it's a pretty good thing for the country. but what do you think the cost of it is? >> yeah. you know, that's a great question. it's probably, you know, millions plural of dollars for the president to go there. just operating air force one is expensive, right? so then when you deal with the security, the 200 grand, apparently 200 grand an. >> hour just to keep. >> the plane in the air. right. exactly. so you're talking millions of dollars for that. and the president left, by the way, right around halftime. he didn't stay for the whole game. he had to beat the post-super bowl traffic just like everybody else. >> i guess. >> but it's an expensive thing. it's always expensive to move. the president and the country sort of just buys into this deal, where we agree that we're going to move presidents around wherever they want to go, and they're going to use their discretion to do that in the

national interest. and you can argue, you know, about presidential vacations over the years have become controversial presidential trips that are political versus doing the business of the country. that's been a debate over the years. in the end, though, andrew, the deal is the president gets to go where he wants to go and he sort of waves the flag and uses his personal presence as a leader of the country at his own discretion. and that's kind of it. you know, people can can chip away at that and make arguments. but we've never had anyone be able to, you know, in congress or anywhere else, be able to curtail presidential travel by arguing that it's too expensive. all right. >> thanks, eamon. >> we're going to talk to you. >> actually nsc director kevin hassett. >> who's going to join us at 8:10 a.m. eastern time. >> and if you didn't watch the. >> end of last night's game. eamon spoiled it for you. the philadelphia eagles are the super bowl champs. the eagles beat the defending. champion kansas city chiefs 40 to 22, ruined their chances of trying to make it a three peat. but

folks this game was over pretty much. at halftime philadelphia led 24 to 0. they completely dominated, i think the biggest lead you'd ever seen at halftime. >> 27 to 0. >> i think it was. >> 25 to 0. >> it was. >> 27 at one point because. >> oh no. >> i mean 25 at halftime was the biggest lead you've ever seen in a. >> super bowl. right. and then i saw some of the third quarter. and then. >> i actually. >> watched the last 2.5 minutes. i watched. >> until. >> they dropped 40 to 22. i've never seen a pass. >> rush dominate an offensive. >> line like that in my entire. but the guys are. >> all sick. >> the quarterbacks, they're six, six, three. >> 30. >> three, 33. >> i think up from six two and 240 something points when the super bowl began. >> i mean, i wonder i. >> don't think. >> tom brady's. standing back there. >> could have done any better than. although mahomes. >> i. >> don't think it was mahomes fault. >> mahomes well he definitely had some happy he had some happy. >> feet there. >> but there. >> was so much pressure from. >> the he got hit. he was either i mean it was. >> it was scrambling. >> he was getting the. >> ball a couple of times. i was

watching kelce too. who you. >> know we. >> think of him as a receiver. the guy. >> just walked. >> right by kelce a couple of times and just just zeroed in on on mahomes. it was. >> it was painful to watch. >> it was a. >> crappy game. >> it was. >> painful to watch unless you're an eagles fan. >> yeah. oh yeah eagles fans. >> loved it. >> but as a game to. >> watch it wasn't. >> a. >> great game with all the hype to watch and we always hype it for two weeks. we go. >> nuts. >> we go nuts. >> it was crazy to see mahomes dominated like that though. >> i mean. >> it was his line that was dominated. >> he's he's. >> really good. but and even the passes that were like so uncharacteristic of, you know. >> behind guys and. >> yeah. >> and then. >> one time. >> it got knocked out of his hand. >> from behind him in the second half. jalen hurts anyway was the mvp of the. >> game 42. but saquon i mean the chiefs focused on. >> saquon because it was great. >> and as a. >> result everybody else was able to come around and play. he threw two tds. this is going back to jalen hurts running for another touchdown. in the next hour we're going to check out the ads that had the biggest impact with viewers. last night.

there was. >> like i didn't think. >> i like. >> the elmo ad. >> you know, i have to keep pinching. i have to keep reminding my like, i don't watch ads. so i'll be there like, oh, i'm supposed to be watching these ads. i'm supposed. >> to be watching them. >> there's a long version. >> of duncan. >> that was the duncan. >> you didn't get to see. >> on the show, i saw it. >> that wasn't. >> a seven. there's a 6.5 minute version. i would, for those. >> of you. >> doing, what do they call it? two screens. >> now screen is green. >> screen is green. >> you can watch it on youtube right now. it's awesome. it's like a movie. it's like a mini movie. it's pretty great. >> i got. >> a lot of flack for saying that. i like the pfizer commercial. >> oh, i. >> actually. >> did like that too, which. >> i thought was great. pfizer cancer commercial. >> now they're a cancer company. i like that because people they're not what they're not. >> the leading cancer. they've never been a cancer. >> that they're. >> hoping to make. oh yeah. oh yeah. forget about what we did before. that was a great commercial. on the merits. >> of the commercial. >> it was duplicitous. >> it was a tear jerker to see a duplicitous cancer being able to come home. >> well, yeah, that'll work every time. >> google one was pretty good.

>> did you. see bill murray. >> was good. i did see bill. yeah. i didn't understand what the hell was going on. we went on. >> a real. >> email address. you can go, right. >> we got to go. >> i did you could talk about chatgpt. did you see that? >> i did see that. >> i thought that. >> was interesting. >> and then what about all of the did you see all this speculation online about this muscat that never happened. >> didn't see that. >> that's what i was looking for. >> yeah, yeah. >> the. >> toilet paper. >> app was pretty good. >> there was this whole. sort of. >> conspiratorial view that somehow musk was going to buy millions of dollars of ads to literally line by line, show you everything that he's discovered under doge. and there were these people online. >> going. >> why does he need. >> to do it? he's got his own thing. he can. >> do it for free on on twitter. that's what i thought. >> yeah. >> okay. coming up on. >> the other side of this, they're going. >> to. >> kill us. >> we're over time. >> an oil. >> giant now. >> a. >> target of an. >> activist investor. >> we're going to tell you which one right after the break. plus, we're going to dig into the markets ahead of some big reports. >> this week. >> and then later, take-two ceo

strauss zelnick. >> is. >> going to be our special guest. got a lot to talk to him about. squawk box returning after this. >> on this cnbc program is >> on this cnbc program is sponsored by this is steve. steve takes voquezna. this is steve's stomach, where voquezna can kick some acid, heal erosive esophagitis, also known as erosive gerd, and relieve related heartburn. voquezna is the first and only fda-approved treatment of its kind. 93% of adults were healed by 2 months. of those healed, 79% stayed healed. plus, voquezna can provide heartburn-free days and nights, and is also approved to relieve heartburn related to non-erosive gerd. other serious stomach conditions may exist. don't take if allergic to voquezna or while on rilpivirine. serious allergic reactions include trouble breathing, rash, itching, and swelling of face, lips, tongue, or throat. serious side effects may include kidney problems, intestinal infection, fractures, life-threatening skin reactions, low b-12 or magnesium levels,

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reminder. >> smart buy. >> got it, got it. boss otter. you got this. >> wow. >> welcome back to squawk box. >> this morning. shares of. >> bp moving higher. >> right now. >> there are reports that. >> activist investor. >> elliott. >> management has now built a stake in the british oil company, and could pressure it to try to shift gears on its core oil. >> and gas businesses. >> the company so far declining to comment on the. >> back of that report. which

does not specify the size of. >> the stake. >> built by. >> paul. >> singer's hedge fund. cnbc has now. >> reached out to elliott management for comment. bp, we should say, which is set to unveil its fourth quarter results tomorrow. >> issuing a. >> warning just. >> last month of higher corporate. >> costs, lower fourth quarter realized refining. margins and some one. off charges. >> linked to. >> its bioethanol acquisition. >> and you can take a look. >> right now at. futures ahead. >> of the open. of course, we've still got close to about three hours to go. futures were lower there. now that the futures are lower. >> they're now. >> moved higher in even with the tariffs. just a little bit. yeah. >> but they. >> had you know what was that. it was only a week ago wasn't it. >> it was a thousand points. >> at the weakest point a. >> week. >> ago a week. ago before. >> we. >> you know, then they gradually came back down. and then he pulled the tariffs off before 1030. >> he hadn't pulled these. and the market's still. >> there is much. >> more targeted. yeah. but we're going to talk about this. what doesn't. >> kill you makes. >> you stronger. marianne we got a lot this week. >> cpi let's bring in. >> marianne bartels.

>> chief investment. >> strategist at sanctuary wealth. you point out all these things. >> and i've used it so. >> many times i'm tired of using it. but we're drinking from a fire hose, obviously with all the policies. and tariffs. >> and doge and everything else. >> but the market. >> is what. less than a. >> point off its all. >> time highs. >> correct. market is holding up remarkably. >> well considering. all the political backdrop. >> all the. executive orders, concerns about tariffs. we're in earnings season. >> and economic data. >> and at the end. >> of the day when we're. >> looking at earnings, earnings. are up 16% for the quarter. >> and that's the best in three years. >> and i think that's what the market. >> is. >> paying attention to. i'm also surprised because tech has been. >> the leadership. >> and we're really getting a rotation within that technology. >> and the market. >> is. >> still holding up. so i remain very bullish, joe. and we have pretty aggressive targets for. >> this year. 207,274 7000

406,000. i did some quick. math in my head. that's 20%, isn't it? >> it is. >> and that that. >> would be three years in a row of 20%. >> or more. >> and the last time. >> we did. >> was the 90s. >> but i also. >> compared this market to the 20s. >> up from. from 25. >> to 29. >> and it's. >> really based on innovation. >> in the 20s. >> we had. >> a lot of innovation. >> we had. >> electricity and railroads and radio. >> you know, the. >> 90s. >> we know the internet. >> and computers, and now we have ai. and right now it's estimated this year companies are going to spend over 300 billion. >> that's a lot. >> of capex. but the difference from the 90s is that they're using it with cash and equity and private equity. this is not leveraged. >> the way it was in the 1990s. >> so again, i'm actually not just. >> bullish for this year. i think we still. >> are in a secular bull market. that's going to go out. >> to. >> 2029, 2030. so my. decade end target. >> is 10,000.

>> to 13,000. >> on the s&p. >> both of those fantastic periods that you mentioned were followed up with pretty spectacular declines too. is there something that punctuates it at the end or. >> well. >> normally at the end it's different than 1990s because it's not leveraged in. these companies have real earnings. the punctuation point. >> is excellent. normally what i. >> look for a major peak in the. >> market is everybody has to be in, particularly retail. >> we don't have that. there's still a lot. >> of cash, at. >> least 7. >> trillion on the sidelines. >> another little secret and not enough people look at this is new york stock exchange margin debt. and if you do a little bit of math on it i kind of normalize the data. >> you have a. >> very leveraged market, which is why markets come down so much. you got to get that leverage out. not even close. and then i look. >> at the technicals. i look at the fundamentals. >> the technicals still support significant upside. and then if. this ai innovation really materializes and it's also

robotics. it's also web three crypto. it's the whole package of. >> innovation that i think is going. >> to. >> drive this. and it doesn't mean we won't have another. >> bear market. i still. >> think we'll have one. >> more bear market, but we'll recover. >> and go on to all time new highs. >> the jobs numbers you thought were weak, but the revisions were strong, so. nothing changed. we get a couple of cuts this year, maybe. and you think the ten year yield is in a >> you might think. not w >> if there's. inflationary expectations. from tariffs. >> in the. near term. >> we just had a breakdown on the ten year. >> that would point to about 4.2. but our target for the year is to be range bound between. >> 4 and 5. >> because the economy is. >> growing really strong. >> so you don't think four. you think between. >> well range. >> between 4 and 5. but i mean if the economy stays. >> strong. >> you know, at some point i wouldn't be surprised if we're back up near five. >> it's a head and shoulders. >> it's an inverted head and shoulders pattern. so we technically broke down from

that. >> you mean that's lower for the ten year yield. >> near term? >> about 4.2 okay. >> not for the bond. it's not for the note itself for the yield going lower. >> yeah. so you know at least the. >> yield. >> environment. >> is positive. >> well that's weird. that's not implicit that. >> you wouldn't think. >> that necessarily. >> no. but that can reverse out with ppi and cpi this week. so we're going to be watching. >> that very closely this week. >> yep. and we have jay powell. coming before congress tomorrow and wednesday. >> so thanks for thanks for being here you guys. at the same. same wreck you were dealing with i guess on the west side highway. >> yeah. >> yeah, it feels good. >> a little stuck. >> a little. >> stuck up here. >> and some. >> people. >> had a good time partying last night. >> they did? >> that's what i heard. >> is that. >> oh, that's. >> yeah. >> that's the rationale. >> the rationale for the accidents. >> no kidding. >> it was a mess. >> i'm listening for that. is good enough time. i guess. >> i don't know. >> thank you. >> thank you. i had a couple of things, andrew. i thought i

could. maybe do. you know. i mean, it's not like the old days. i mean, super bowl, our super bowl party is not the. i mean, think about i tried to think of all the things that, you know, write down a list. >> there's wings. >> there's, like a mexican dish. i still think there's. >> like. >> a dip. >> i just want to say, roger goodell, if you. >> remember last year, you know what i can have crudité. the last year, roger goodell floated the idea. >> of moving the super bowl. >> to presidents weekend. >> do you remember that? >> yeah, that might be good because then you. >> get the monday after. i thought that was a great idea, except that it would it would. >> conflict with everything. >> adam silver. who's got his nba all. >> star weekend next weekend. >> okay. >> but all of these seasons are getting longer. the college season is getting. >> we're off. >> presidents day, right? we really. >> are next monday. >> we really are. yeah. >> pretty good. >> mark it down. yes, virginia. there is a santa claus. >> these people might come up with something. you know how they do that, though? you know they do that, though? you know what i mean? there's nothing (grunting) at morgan stanley, old school hard work

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one optimized platform. become a smarter investor with the power of cnbc pro. go to cnbc.com slash get pro now. >> all right welcome back everybody. >> the trade that rocked the nba still hurting former mavericks majority owner mark cuban. as you might imagine he said that the luka doncic trade to the lakers is not a deal he would have made. look, in the past, he has talked about how if he had to choose between his wife and luka, he'd be at the lawyer's office writing up divorce papers to go around with this. luka was his idea. luka was what he thought was the absolute future of the franchise. he has not spoken publicly publicly about it until this past week, when he joked about it with bill gates at about that trade on friday evening. >> so i wanted to start off with the question, because you've. >> been in. you know, unique

situations and maybe. >> you can help. >> if after you left microsoft. you found out. >> that steve ballmer traded. >> windows 11, like the new hot operating. >> system for windows. >> 10, the hall of fame, that older. >> what did you do? >> i might have to hide from the press. i know a couple other people that are. >> in that situation. >> again, mark hasn't spoken publicly about this. there's video out there of him supposedly seeing the trade on the phone for the first time when people and kind of like almost dying seeing this reaction. other people have said who cover him and have covered

this the whole time, have said that not only would he not have done this trade, any gm who brought this to him would probably not be there the next day, because they would have. he would have thought he was high for doing something like this. i actually reached out to mark and tried to get him to come on the show today to talk about it. he says he can't talk about it right now. i don't know if that's just because it's too painful. >> to him or one thing. he really say that about his wife. >> he was joking. but yes, that's what that's what i was reading on the report. i know you would not be alive if you had suggested hearing it. yeah. >> hearing someone else say that made me nervous. >> yeah. anyway, it's just that he saw him as the future of the franchise. >> and by. >> the way. >> the fans. >> as did. >> the fans, own the team anymore. >> he doesn't own the team anymore, so he doesn't get to say. but it pains him and it's been an interesting thing to watch. and by the way, there have been death threats against the gm who did make this decision. he's not going to be able to sit down in the stands with those fans are furious. >> anthony davis had like 29 points in the first half. >> anthony davis is amazing, but he's in his 30s.

>> 33. >> yeah right okay. >> coming up a lot. >> more to come. >> gold prices. >> they are surging this morning bringing the rest of the complex along for the ride. we're going to bring you an update right. >> after this. >> plus china launching its own set of retaliatory tariffs now against the united states. we've got a live report from beijing. you do not want to miss this conversation right after this. >> executive edge is sponsored by at&t business next level by at&t business next level moments. at&t has a new guarantee. because most things in business are not guaranteed. like a distraction-free work environment. -yeah,i'll circle back around. -get those steps in, kevin. your coworkers keeping things confidential. [phone ringing] oh, she's spilling all the tea. ♪♪ or office etiquette. yeah, that's not guaranteed. i know you can see me! you know what at&t guarantees? connectivity you depend on, the deals you want, and the service you deserve. can i get that logo bigger? or we'll make it right. that's the at&t guarantee.

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for free. visit otter.ai or download the app. >> good morning and welcome back to squawk box live from the nasdaq market site in times square. here's the futures this morning. pretty solid gains premarket though. we did have a pullback on friday. we understand it necessarily. was it too hot too cold was it. we average earnings. the revisions were good. the headline number was a little weak. bitcoin has had trouble staying above 100,000 for the past couple of sessions 97 892. it has come back a little. was down at 95 earlier 95,000. and gold hitting an all time high just below 3000 2930. gold stocks. as you can

imagine, the stocks based on trading gold. also, as you can imagine. >> doing pretty well this morning. >> meantime china imposing retaliatory tariffs right now on the united states hitting. >> billions of dollars worth. >> of goods and. energy resources. i want to get straight over to eunice yoon this morning. she is in beijing with a report from what's happening on the ground there. what are they saying? >> well. >> andrew, those. >> chinese counter-tariffs are. >> now in. >> effect. >> but they probably. >> aren't going to. >> be meaningfully damaging to american businesses because they are limited. unlike president trump's tariffs, which have been blanketed. all over the chinese companies. >> these ones from china are targeted. goldman sachs. >> estimates that the. >> chinese levies. >> cover $14. >> billion. >> of u.s. exports to china. >> so that's. >> only about 10% of the overall amount of. goods that. >> the u.s. >> shipped to china. >> last year. but what we.

>> do need to. >> watch is. >> any signs. >> that china. >> is willing. >> to retaliate in very different ways. unlike president trump's first term, the chinese have. already been signaling that they're willing to single. out individual companies. >> over a week. ago as part of. >> these countermeasures. china announced that it's investigating. google on. >> antitrust allegations. >> also, blacklisting illumina. as well as pvh. >> and then last december, it. >> also launched an antitrust. >> investigation into nvidia. >> and then, of course. >> late last week. >> there were some. reports that the antitrust watchdog was considering investigating apple as. well on. >> those antitrust grounds. >> so the in addition to that, now, the. >> wall street journal has. >> been reporting. that that strategy by china. >> could be expanded to include broadcom. >> and synopsis. the chinese. >> government today dismissed. >> that report. but this is.

>> really a widespread concern here. that was bubbling up. especially when president trump was coming. >> into the into office. people were. >> concerned that the chinese could use. >> this as a way to push back on president trump, guys. >> we will see. we will see what happens here. we appreciate it. i just question what is the sentiment from folks about this? just just generally if you talk to people on the street, do they talk about it? >> they do. >> talk about it. of course. >> in private. >> but people are. >> also signaling how they're feeling. >> by what. >> they're doing. >> with their money. >> for example. >> we have been over. >> the past. >> couple of weeks seeing. >> more and more people. >> deciding to. switch their. >> money into. >> us dollars. >> switching money into gold. a lot. >> of. >> them are. >> really concerned about. >> protecting their wealth. >> because they are worried about. >> what's happening. >> here, economically. >> speaking, but also what those tariffs by president trump could

mean to the economy. >> okay. >> eunice yoon in. >> beijing this morning. thank you. i'm sure we'll be talking a lot more. >> with you about all. >> of this. >> gold, by the way, at an all time high on friday too. when we come back, elon musk bringing his business playbook to washington. now the tesla founder is making his mark on the government. we'll be. >> right back. when cyber threats target the world's data. seconds matter. that's why the world's most trusted brands depend on reliaquest gray matter to contain threats in seconds. it's the. only technology independent, ai driven platform

built by security operators. for security operators. reliaquest makes security possible. >> it's no. >> secret bitcoin is stronger than ever. over the past five years, even as stocks ripped higher, bitcoin has crushed the s&p 500 and nasdaq and high fliers like nvidia over the past decade. many predict bitcoin will hit $150,000 in 2025, which likely explains why so many of the smartest investors are jumping into bitcoin, including paul tudor jones, tim draper and elon musk. but there's another huge investor we believe is about to enter the market in an unprecedented way. as they pile into bitcoin, prices are likely to jump even higher. turning this into the biggest bull market cryptos have ever seen. most folks will likely run out and buy bitcoin, but there's a much better way to profit from this new crypto boom. we are

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cnbc takes you inside the numbers. what are the. >> earnings trajectory tell. >> you though right now? >> smart analysis crucial strategies. >> great to get your first reaction. >> to this print we got from nvidia. >> and when the ceos have a big announcement they come here first. what's your take on. >> not just. >> the quarter. >> but how. >> things look from here helping you make the right moves. >> this has. >> been a key number. >> the street was watching a wild hour. >> of earnings. >> earnings season special coverage all this month on cnbc. >> all right welcome back everybody. elon musk bringing his business playbook to washington. wall street journal business columnist and cnbc contributor tim higgins writing a new column on the topic this weekend. tim joins us right now. and, tim, i don't know if you want to call this the classic silicon valley playbook, move fast and break things. or if you want to call this, you know, begging forgiveness instead of asking permission. but what have we seen in the last just under three weeks? >> well. >> it's a little bit of both.

>> just like the philadelphia eagles. >> have the tush. >> push. >> elon has his. >> classic move. >> which is. >> to create. >> the. >> appearance of momentum. >> a win. begets a win in. >> his thinking. and he's talked about this. >> in. >> the past. >> that. >> if the. >> odds are. in his favor. >> for winning, he wants to make that decision rather than thinking about it. because not. >> taking a decision, not. making a. >> decision is a decision unto itself. and so. >> he's what he's been doing in these last few weeks is what he's been doing at tesla. >> and spacex. >> and twitter turned x. >> over the. >> years, which is. >> doing things right. >> they might not work out. they might get him in trouble. they might. >> have to. >> be undone. but he's going. >> to try. and that. >> can. >> kind of create. some momentum and momentum that looks like he's accomplishing things, which is important in a trump administration. >> the tush push always works, as it did yesterday in the super bowl. managed to. >> get a brotherly shove. >> get it over the line. >> brotherly shove. >> it worked. does this tactic

work in washington because it's a different beast than the private sector for sure. >> well, we're going to. >> have to see here. >> you know, one of the. >> things is that. >> elon musk and donald trump are attacking or going after things. >> that are. >> important to a lot of people, and they're going to have. >> enemies as they. >> do it. the idea, apparently. >> is to try to. get past. >> that with their momentum, move on to the. >> next thing. >> right. so we've seen them. >> elon's doge team go. >> after several. agencies at this point, and it's almost kind of hard to keep track. of where they're at at this point. if you're an opponent. of them. the question i think you're really. >> getting at. >> is there's procedures for spending cuts. >> congress wants to have a hand. >> in all. >> of these things. the courts. >> are clearly getting involved. so unlike his private businesses, where elon musk could essentially do whatever he wants. there's some other bosses in the. mix that. >> might have something else. >> to say. >> yeah, i saw larry lindsey. he

was on with kelly evans in the last week or so, and larry brought up this really good point that, you know, he's going to be caught up with all kinds of court cases and depositions and getting dragged in for these things for a long time. i'm amazed that elon would put himself in that position of going through some of these issues. this is definitely playing out in the courts to this point, i guess. do they like where does it wind up? just we wait and see what happens to the supreme court. >> that seems to be the play. >> if you look at twitter. >> for example, he. >> did a lot of things. >> when. >> he first took. >> over that, you know, i think. >> outside observers would. >> say. >> oh. >> you can't. >> do that. >> whether it was the way he fired. >> people or the way. >> he. >> kind. of cleaned. >> house. >> cut off leases to various places, really kind of took a litigious kind of stance of kind of come after him, the world's richest man. if you want. >> to get. >> that money, it. >> seems. >> as if he's going to do that in government.

>> and. >> you know, in some. >> ways it seems. >> like it's. >> a play for the long term. >> it kicks. >> the can down the road. >> but with. government at this level of government. things probably move a. >> little. bit quicker, as. >> we've. >> already seen, than they. >> do with. >> some people. >> laid off at twitter. >> which are still. >> kind of, you know, being. decided through. >> the various. >> arbitration processes. >> hey tim, i have always been in awe of just the number of things that elon musk is capable of doing at one time, at. least managing, given his many hats and roles that he has. president trump made the comment just yesterday. i think that, you know, he was you know, he's impressed or, you know, can't believe just how much time he's devoting to this. there are a number of folks on x, elon musk's other platform, of course, that are big tesla bulls and followers who seem to have some anxiety just about how much time is being spent on his efforts in washington. do you think it's going to have an impact on the on the tesla

business? >> yeah. huge concerns right. >> because here they've built. they've kind of bought into that gamble of what the future of the car will look like, in large part because of elon musk selling that vision. the challenge here for tesla is that most of their lineup is very old. and clearly they're trying to update the model y with a. >> kind of a. >> refresh that we've seen. refreshes can maybe help move the dial a little bit, but it's not new. >> product. >> elon has been making the bet that the future of the company is going to be on autonomous vehicles, driverless cars. and you know. >> that's a. >> huge bet. and in some investors would like to see him spending more time behind the wheel at tesla. because that is so complicated, because that's. >> such. >> a huge bet, because they have so much money on the. line for that. >> tim. thank you. and it's an experiment. we're all watching pretty closely. thanks for joining us this morning. >> thank you. >> all right. coming up. getting up, getting your $8 million worth new data on which ads had

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maybe the hyperscalers will start dialing back their hardware investments. >> mad money weeknights 6:00 eastern. cnbc. >> welcome back to squawk box. meta. now on a record breaking streak rising. if you're an owner. of this stock, you got to be happy. it's been rising for 15 straight sessions. we're sitting at $721. paul meeks joins us. harvest portfolio management cio. can you explain what's happening here, sir? >> sure. i think the catalyst. was their. >> quarter, and it. >> was not. >> the results that they necessarily reported or even guided. >> to for. >> the next period, but the aspiration that mark zuckerberg. shared that they want. >> to be. >> not just the american, but the world's standard for ai open

source models. and if we indeed go in that direction and they execute the fact that they already have 3 or 4 billion people on their apps at least once a. >> month. >> puts them in the driver's seat, and it. could be a. >> really explosive opportunity. there's that. >> i would say that's the 80% of the 8020 rule. the 20 is probably. the monetization, which we'll. >> see accelerate this. >> year in reals. and there's some interest in what happens. with tiktok, of course. and i don't know what's going to happen there in the end. >> but if. >> tiktok is restricted in the. united states in. >> some way. >> form or. >> fashion. >> obviously very positive for meta. >> paul. >> so let's just talk though about multiples here about sort of floors, ceilings, 721 bucks. is it priced to perfection? >> no i don't think so. >> the multiple. the multiple is

relatively high. >> over its history. >> and this year. >> is going to actually. >> be a. >> slower growth. >> year. >> at least. >> on the top line with their increased investment. but i think over time the stock is trading in the high 20s pe on next year's earnings, the s&p low 20s for this opportunity with lambda, the open source ai model it could be explosive to. >> the upside. so here's what i would do. >> i'll undoubtedly have fresh money cash new clients coming in today. they're a blank sheet. >> of paper. >> i'll buy it from my. existing accounts that have had the stock for years. i just continue to roll with the tide. right. >> paul, walk us through the economics of llama. llama. of course, being their their their version, if you will, of chatgpt. except that it's open source and it's free and therefore it's less clear about how the economics, if you will work, at least stand alone. right? they're using it

internally on facebook, on instagram. i imagine somehow in whatsapp at some point. but in terms of what it does long term, unless you think what it really does is just undermine the value proposition of all of its competitors. >> excellent question. first of all, we don't know. >> and it would be speculation on my point, but we do know that in the past this is the mo for facebook. what they do is they. >> introduce a product. they tinker with the product. >> they seek to get to 1 billion subscribers. and when they do. >> that. >> they monetize it. and i think the that's in the cards. and so i like the opportunity. so to answer your question. >> directly. >> we have to get the users. then we focus to. >> the monetization bit. >> and i think they will. >> are there good examples. of open source products like this where you think that there is an

ability. and when you say you're speculating where they would charge just for the model itself, does this give them some kind of entree into the enterprise? i mean, what are we talking about here long term? >> so actually i think it will be not just a consumer product, but an enterprise product. and it could come in a lots of different forms. it remains to be seen as far as their competitor, you know, we saw their competitor make an announcement. >> the other day. >> you know, the only one of note, although it's not very large but significant in the news is china's deep sea. and, you know. >> the. >> beauty of that model was, you know, they were able to create a. competition and spending just two months. >> developing it and only. >> $5.6 million. so i think. that meta. >> is doing. >> the right thing. right. they are spending heavily. they not only confirmed their capex for next year, they upped it, but

they're going to need. >> that ai. >> infrastructure. >> not necessarily to train models that will. be passed. >> but actually, you know, run this goliath enterprise. >> okay. >> hey, paul, we got. >> to run. i don't know if you saw the chris hemsworth, chris pratt meta ad with the with the glasses. i don't know how you think that's going to factor into to earnings, but it's maybe factoring into fashion for now. we got to go. it's nice to see you sir. best wishes. >> all right mcdonald's. >> just reporting earnings fell 5% over the prior year to $2.83 a share. that was in line with expectations. revenue of $6 and 39 6.39 billion was slightly below estimates of 6.44 billion for the fourth quarter. the global comps increased by 040. 4%. that was better than expected. they were looking for a decline of 1%. if you looked at the analyst consensus, international operated markets

increased by a 10th of a percent. that was much better than the 1.5% decrease that the street was expecting. us comp store sales, though, were down by 1.4%. that was driven by a decline in the average check, not the traffic patterns. the street had been expecting a decrease of just 0.6%. that stock up by about 1% on the news. >> okay. >> it is just. >> past 7 a.m. right now, 702 to be exact, right here on the east coast. you're watching squawk box on cnbc. we'll call it the day after the super bowl. i'm andrew ross sorkin along with joe kernen and becky quick. how many people are calling out sick this morning is always the question. today is the highest, highest sick day rate of the year. >> so those. >> of us who show up, there's not a whole lot of productivity. >> that's that's separate matter. among today's top stories. president trump returning to washington overnight after becoming the first sitting president to attend the super bowl. he made news before he stepped in. the stadium has a new tariff announcement on imported steel and aluminum and promising more

tariffs are coming on countries that tax american exports. that is roiling and in some cases helping the aluminum makers here in the united states. we're going to show you what is going on there in just a moment. he came back. right after halftime, or at least headed back after halftime like a true a true professional that. >> does. >> this in terms of the guys who go to the super bowl all the time. half of the real super bowl pros go to the weekend and they leave before the game even starts. >> if you knew the game was going to be last night like last night's. >> game, he might he might have stayed in washington. meantime, china's retaliatory tariffs on key us exports taking effect as beijing reportedly weighing targets targeting a more major us technology companies. and then we should tell you about this sony giving playstation plus members five extra days of service following a network outage this weekend, the company said playstation network had fully recovered. as of yesterday from an operational issue. >> the outage. >> started friday evening.

players had issues with logging into their accounts, visiting the playstation store or launching online games, and i. imagine the sorkin boys are probably happy that they're going to get five extra days as a result of all of. >> this, and checking the futures. >> which they play. >> tariffs. what tariffs? they're up this morning. contessa brewer is very productive. she's already i know you did an hour of live tv already. and now you're going to look at this morning's pre market movers. how are you feeling andrew. >> andrew says i'm a real professional because i go down for the whole super bowl lead up and then back before the game. so that's the way we just work it. you know we got to get to it to roll. yeah i didn't and by the way wearing eagles green i didn't even know because i went to bed before the end of the game. so who knew. >> yeah you would have known after the first two sequences i think almost. >> i did say through halftime. so yeah, i did. i did see where things were heading. >> pretty good idea. >> the big story this morning. let's get right to it. steel

stocks. they're just climbing because president trump told reporters that he will impose 25% tariffs on all imports of steel and aluminum into the us. the move would, of course, broaden his restrictions on some of the country's top trading partners, including mexico and canada, which are among the largest exporters of steel and aluminum to the united states. the president didn't say when duties would take effect, but he added formally, he would announce those plans later today. but there you're seeing us steel up 5%. look at nucor up 9%. you've got cleveland-cliffs up almost 8% and alcoa up 5%. we'll have to watch the insurers and see what this does though, to the cost of rebuilding post wildfires and hurricanes helene and milton. all right. so you've got shares popping in the premarket of bp, more than 6.7% on news that activist investor elliott management has taken a stake in the energy company. cnbc reached out. we don't yet have details about the size of the stake or those future moves, but rbc analysts predict that

elliott could push the british giant to split its core gas and oil segments. and last month bp had warned of higher corporate costs, lower refining margins, other one off costs. look at what shares have been doing here over the last year, down more than 5% but up this morning more than 6%, as i said, and meta laying off 5% of its workforce across multiple countries. that's according to an internal memo reported by reuters. those cuts were reportedly target low performers, even as the tech giant accelerates machine learning engineers and hiring of them. shares of meta have just been on a tear. they're closing in higher in each of the last 15 sessions, up more than 50% over the last year or so. and right now, moving higher by just a little less than 1%. guys, joe. >> very good. all right. yeah i saw that green on worldwide exchange. i thought that's nice. >> did you think did you think i was an eagles fan? you did,

didn't you? >> i didn't know if it was a coincidence. i almost wore a green tie today. why are you an eagles fan? >> because my parents. >> live in south jersey. and my brothers, my parents, they're all. >> eagles fans. >> okay? >> my daughter suddenly is in heels, you know? >> well, she. >> went to. >> upenn. >> she went to penn. she went to penn. >> it's okay. >> bengals are open for business. you know the loyalty. she's also a ravens fan because she's in dc now. yeah. and a commanders fan must be nice right. yeah. >> well you. >> always got some skin in. >> the game. >> exactly. >> unless it's a giants. jets and then. yeah right. >> all right when we come back super bowl 59 advertising winners and losers. we're going to take a look at the commercials that have america buzzing this morning. and later majority whip tom emmer joins us to discuss the president's plan to announce new tariffs and much more. squawk box will be right more. squawk box will be right back.

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>> welcome back to squawk box. after an initial run higher leading up to president trump's white house win, bitcoin is down now more than 7% since he took office. interestingly, joining us to discuss the crypto market, anthony scaramucci, founder and managing partner of skybridge capital. good morning to you. happy post-super bowl. i assume you were an eagles fan, by the way. i could be wrong about that, anthony. >> well, i'm. >> a jim. >> cramer fan. >> so if. >> you're a jim cramer fan. >> you gotta you gotta. >> you. >> gotta root for the eagles. >> so congratulations. >> to jim. >> but by. >> the way we should mention not only congratulations to jim, but i think this is a birthday for jim too today. we wish him a happy birthday. and he just got

a big present. obviously the eagles gave it to him. so there. happy birthday jim. well happy birthday jim. >> and congratulations. >> to the eagles. >> anthony, what do you make of just the way bitcoin has moved. we're at 97,000 bucks right now. call it 97 97,500. it has moved down obviously was on a huge run. but when you think about the floor we've heard people say the floor might be 70. i don't know if you think that's accurate. and then obviously, you know, people talk about the sky being the limit when it comes to the ceiling. >> well. >> listen. >> you know. >> andrew. >> i began. >> my. >> bitcoin journey about. >> five years ago. >> and i've been. >> i've been. >> tarred and. >> feathered and praised as. >> it goes up and down. >> and you oscillate between. >> genius and dummy. >> but i. >> i think. >> that bitcoin. now is representing where prices. >> should have been in 2022 and said differently, if you look at the november. bitcoin futures. approval just.

>> studying administrative. >> law. the spot. >> etf should. >> have been approved. >> sometime in the first. >> quarter of 2022. >> so all of that. >> delay caused a lot of that. >> price damage. >> and so i see it here. >> as the community seeing. >> itself getting propitious. decent middle. >> of. >> the road regulation. >> and if. >> you look at the people that. >> the. >> trump administration. >> has put into. >> those positions, i. >> think you end up. >> getting that. and so. >> 97,000. >> 98,000 is sort of where i thought we would be three years ago. >> so. >> the real. >> question is. >> will the. >> institutions enter the game? and i think you see. >> some of. >> the endowments. >> starting to do that. >> we know some of the sovereign wealth funds in the middle. >> east are. >> quietly doing that. >> and so. >> i. think it's going. >> to be. >> a very good year. >> for bitcoin. >> where are. >> you on this strategic reserve idea? if you were a betting man? >> well. >> i think. >> it'll likely. >> happen at. >> a small level. >> i think david sacks has been very smart. >> to delay it. >> i think the executive order. showed good.

>> judgment because. you want to get. >> the buy in from. >> the republicans. >> and the democrats. >> not just one party. >> you'd hate to see a strategic. >> reserve going into place. >> republicans lose. >> power. >> and then the democrats. >> pull the rug. >> on bitcoin and. >> take it out of the strategic reserve. >> i think you. >> need to get buy in. >> on both sides. >> i think it was. >> very smart. >> of david. >> sacks to make. >> sure that there. was a. six month. debate and. >> six month analysis. >> of this. >> but i do think you. >> get something. i remember. >> we have 27. >> other things in our strategic reserve. >> it's not just. >> gold and oil. >> there's trace. minerals and. >> other. things that. >> the country reserves. i think this is. >> an asset that. >> the country. >> will want to own. >> can i ask you about eth ethereum only because don jr was out there saying it's going to go up? let me tell you, i assume he has some of it, but do you have a take there? >> well, we. >> do own ethan. >> small sizes. we're much bigger. solana fans. >> than we. >> are eth. i don't. >> we don't have a negative opinion of eth. my partner in

law school, classmate john sullos. >> is. >> sort of. >> an. >> eth maximalist. >> so he he's. >> he's got it in our portfolio. i think. >> that. >> brett messing and i just think. that solana. >> is. >> faster. >> it has lower lower gas fees. >> and i think. >> it's the one that's going. >> to win the race. >> if you will, in. >> terms of going into the tokenization. >> world. >> if larry. >> fink is right and we end up tokenizing stocks and bonds, i think solana would probably. >> be a. more obvious choice. >> anthony, where do you land on this whole meme coin phenomenon, i ask? you know, we were joking. it's not such a joke. a couple weeks ago, someone made this this sorkin coin, which, by the way, has, i don't want to say happily or unhappily, but has dropped in value. i have nothing to do with it. but, you know, i've been following dave portnoy, who put out a meme coin during the super bowl weekend. it's called jail stool, and it's also dropped in value now. but i mean, it's still, you know, it's

got a market cap of $82 million, which is remarkable. i think, though at one point it might have been, you know, 4 or 5 times that. and i just wonder whether you look at that and say, these are sort of great signs because they're engaging people in all of this, this new world of crypto. or do you think that it turns people off ultimately? what what's your take? i mean, a lot of people are having fun with it. but if fun is sort of in the eye of the beholder, because some people are making money and i have to imagine others are not. >> so literally, i. >> have like a. >> post-it on. >> my computer. >> andrew, please. don't talk. >> to joe about. >> the. >> trump meme coin. it's like right. >> there. >> below the camera. >> so i'm really. >> doing the best i can not. >> to talk about this stuff. notice i didn't talk about djt. i'm talking. >> about mr. portnoy. we're talking the. >> same category. >> we're talking about the we're talking about the sorkin coin. there's no mooch coin. >> no. >> there's no. >> there's no. >> mooch coin, joe. >> but if there is it will be in if there is a mooch coin joe, i expect. >> you to be the first. >> buyer and.

>> i would definitely i'll make sure you're. >> involved in the ico, joe. >> do it together. somehow. we could cover the whole world that way. although, joe, you'll be locked up for like ten years. >> in the mooch. >> coin. okay? it'll it'll it'll. >> almost be like the. >> jl coin. >> where you'll. >> be locked up in the mooch coin. >> in jail. but you got to hold it for that long. like a lock up period. literally a lock. >> i just interesting by the way. about what? about how portnoy was doing it, which was he was saying, i'm not going to sell until it gets to, what, $500 million or $1 billion or something? >> i'm at a loss for all this. why is this sorkin coin have any value? >> i mean, you're a. >> wonderful person. >> but i. >> think that's the question. >> that is the question, by. >> the way. even even i would ask the question is. >> this is this i don't think you'd ask it quite that way. this is the. >> stuff when, when, when. >> becky is. >> interviewing warren. >> buffett and. >> he's talking about cryptocurrency. >> this is the stuff. >> that i. >> think would. >> aggravate him. >> i think. if you're looking at this stuff, these. are gambling. tokens effectively. >> and there's a fury around them and there's a, there's a tulip mania. >> about them. >> and i think in the minds.

>> of some of the older investors, it causes contagion onto bitcoin. people think, okay, well maybe bitcoin is just a very big meme coin, right? >> but what about the one that's called poop coin? i mean there's yeah that one i. >> don't i don't i don't know any poop. >> coin or jail bond. >> or. >> jail whatever. >> it's called coin or. >> jail stool. jail stool. >> jail stool. okay, i. own i own. >> bitcoin. >> solana avalanche. >> we have a position in polkadot and things like that. >> and these. >> these are assets. >> that we. think are. >> going to. >> grow in the world of tokenization. of course, we believe that bitcoin is digital property and a store of value. >> but you've. >> got you. >> know we gamble. >> we've got. 5000 years of. >> proven history of gambling. >> and these. >> coins represent that. >> and i. >> think when you have coins. >> like. >> that it does. >> slow down. >> the older. >> demographic towards adoption of these things. but i think they're non-consequential long term. >> we didn't mention. >> dogecoin, which frankly is another. >> meme coin. there's crap. and so you.

>> got. >> you got a lot of meme coins. >> out there. >> and i think. >> they distract from the value. >> and the purity of something like bitcoin. >> and i got another one. this is going to sort of mix the idea of business and policy in one place for you, which is okay, you spent a lot of time with sovereign wealth funds, who some of whom are invested in your fund. and now that there are a big question about whether the united states should have its own sovereign wealth fund, historically sovereign wealth funds have come from countries that have a surplus of money. and so i'm curious where you stand on the idea of a taxpayer funded, effectively sovereign wealth fund. >> well. >> listen, i. >> think the reason why. we've never done it before. >> is because. >> of the imbalances. >> that we have. >> you'd have. >> to get howard on. >> howard lutnick. >> our secretary of commerce, to. >> discuss why he thinks it's a good idea to add. >> on more debt. remember, the cost of our capital is roughly 4.5%. and so howard's going to have to go out there and find things that are yielding more

than 4.5%, because it's not surplus money that. >> we're. >> going to. >> be putting into into that fund. but but listen, you know, he's. >> a very smart guy, very. >> talented, know. >> him for a long time. i'm sure he could make a compelling case. why we need a sovereign wealth fund. >> i just think from. >> a capital allocation. >> point of view, if. >> you're borrowing costs are 4.5% and you're trying to bring your borrowing down, and i think. i think people, you know, i'll say something that joe will probably fall off. >> his chair. i think people. respect the trump. >> administration and elon musk trying to uncover waste in the system. i think we. just have to have. >> a. >> judicious process and remind people that we're in a constitutional republican democracy. and so therefore. >> we have to have that. >> system in place where everybody feels comfortable. with the process of terms of. uncovering this stuff. >> but but at the end. >> of the day, you got a 4.5% cost. >> of. >> capital, roughly. if we can hit a higher hurdle. >> than that, i have no. >> problem with with a reserve like that. >> but but again, i would be.

>> more interested in getting the debt down and getting the operating debt down. you can't. >> spend $2 trillion a year like. >> we're doing. >> it's unsustainable. >> and it's. unfair to our children. >> i'm still on my chair. i have told you so many times the lights are on for you. the lights are left on the light. i leave the lights on all night long. in case you ever decide he. >> has a dimmer. >> he has a dimmer. it's on a dinner party. you know, i had. i had such beautiful. i was in a hospital there for you. i think i was getting my gallbladder out at that point, which. >> all right. >> well, maybe that's actually better than having an argument with you. i'd rather do that than a glass. >> of wine after that. >> joe, i'd rather have my gallbladder out than have another. >> i still. >> love you, joe. i love you, too. the lights are on. you know the love is still there. >> joe. you sound like motel six. >> yeah, the lights are still on for you. you're welcome any time. >> love having. >> you on the broadcast. >> we very much appreciate it. >> the big ten. >> you back. >> the big ten. >> becky. >> i'm sorry that you. >> have to put up with this,

becky, but. >> i'm. >> with you. i'm your advocate. becky. >> good to see you, anthony. >> later on. nobody's home. up next, i'm here, joe. >> trust me. >> up next, last night's game may have been a blowout, but advertisers will still be calling it a win. yeah, right. win lose. >> crappy game. good game. >> they still win. look at last night's buzziest ads. that's next. then later. >> on in the. >> fourth quarter. >> oh my god. yeah right. exactly. >> shut it. >> off later. later mcdonald's reporting just a short time ago street reaction to the numbers and the company's outlook is and the company's outlook is coming up. we'll be right only the servicenow platform connects every corner of your business, putting ai agents to work for people. like secret agents? no, more like autonomous minions that you control. to do what? well, jim's agents resolve simple customer issues. and patty's agents flag network problems. - proactively. - yup. i'm lovin' my agents. wait, you all have agents? oh yeah. and on the servicenow platform, everyone's agents work together so everything works better. can i have agents? maybe.

♪♪ excruciating. and there is no fda approved treatment for this disease. now, okiyo pharma is racing to become the first biotech ever with a drug. >> to. >> treat ncp. ochiyo the first to initiate a phase two clinical trial for this disease. lead clinical site is tufts medical center, okiyo pharma's drug, if approved by the fda, would be the first ever. >> for ncp. >> okiyo pharma symbol okiyo on. >> the nasdaq. >> something very. >> strange is happening. >> in the us stocks following the election. >> and it could spell. >> disaster for some of america's favorite tech companies. >> my name. >> is mark chaikin. >> i built three new indices for the nasdaq during. >> my. >> 50 years on wall street. so when. >> a big shift plays out. >> in our. >> country's tech sector, i take notice. >> and help my over 1 million. followers around the world

prepare. you see, as the overall. >> market soared after the election, a. >> record $5. >> billion. >> poured out. >> of american. >> tech stocks. it was the biggest sell off for us technology funds since the 2022 bear market. now, why did this happen? and more importantly, what. >> does it mean for your money? i recently returned to wall street to record an urgent market. briefing explaining everything you need. >> to know. you can watch it for free at the website below. >> and even get the name and ticker of the number one. >> tech stock. >> i urge. >> you to sell today. >> again, 100% free. >> i find it. >> challenging to come up with a gift that's really impactful. yes. >> it's easy to buy things that. >> are expensive. >> or glitzy. >> but something that really makes a difference and that we're going. >> to get. >> a lot of. >> use out of. >> jolie has. been a tremendous gift. >> it's something. >> that is not only looks beautiful, but. >> makes us. >> feel amazing. >> and is. >> something that we get to use every day. jolie is a beautiful showerhead that filters out

contaminants. >> so that my. >> hair and skin and body feels good. >> and the best part. >> about jolie? the water pressure. >> is amazing. >> we love teaching club members how to manage their own portfolios. >> jim emphasizes doing. >> our homework. >> it just is a game. changer because you can feel confident through the highs and the lows. >> get invested. join the club today. go to cnbc.com. slash join jim. last night super bowl had advertisers paying almost $8 million for a 32nd spot. let's take a look at some of the best and worst performing with kevin krim, edo ink president and ceo. it's a whole different mindset for me, kevin, because a lot of times, as soon as anything goes to a commercial break, i start doing something else and it's like, oh my god, i'm supposed to be watching. it's supposed to be watching this. >> that's why. >> the toilet paper one was the best ad. >> tell me about the toilet paper. >> you've got 32nd bathroom break. we're just going to pay for it. and that was the smartest ad i'd ever seen. >> because you can't. >> miss the game. you can't miss

the commercials. >> which it was. >> that was very clever. and i think it. >> did. >> nice things for the brand. >> so the most the ones that people like are the most effective. in extending a brand or causing people to buy. >> no, it's different than that. it's at edo. >> what we do is we measure the outcomes generated. >> by ads. >> we do. >> that for all. >> the major streamers. like amazon and. >> netflix, as well as nbc universal. fox, who was. >> running the game last night, and many others and. >> all the. >> brands. >> many of the. >> brands that were in that game last night. >> and what what you see is these popularity contests are just that. but what drives actual behaviors. >> from consumers. >> things like people searching. >> for the. >> brand, going to the brands website, using the brands app, those are investment grade signals of what's going to happen to the demand for those businesses and those products in the future. >> here's a tricky one for you. i like the dunkin donuts ad. i didn't go search it. i didn't go look online. but it's for well-known brands that maybe

aren't new things that are coming out. it makes sense if you're a newer brand, if you don't have as much penetration. but i think the dunkin ad works and it won't necessarily show up in the online. >> it works. and it was. >> a well above our average for the game last night, as was the starbucks ad that came. >> much later in the game when. >> it was decisively a blowout. and but it was a big offer of free coffee today, the day after the super bowl, when we all need it. >> so. so they. can both. >> work those both those strategies. i thought what. >> was. >> really interesting was that the top ad. in our. >> measurement. >> which saw a 12.6. >> times more. engagement than. >> the median super bowl ad. was t-mobile's ad. announcing its. >> starlink partnership. where as consumers. >> if you're a. t-mobile subscriber. and for a limited time, if you're an. >> at&t or verizon subscriber, you can get. >> starlink access. >> so that. >> you never hit a dead spot. and the ad showed. >> that. >> paid off that practical value with. >> a guy standing on. >> a cliff. >> showing his. >> family what. >> he was saying. i thought the

even bigger value prop for them, by the way, was not that it just ran during the super bowl, but then elon musk put it out on x himself, and i was thinking to myself, how much value is one tweet effectively from from musk on x? now what we. >> see. what we. >> see often. >> with these super bowl. campaigns is. >> when you're launching a new campaign, which. >> is what you. >> should be doing. >> at a super bowl, you're. >> getting an amplification effect on social, and. >> that halo drives. >> weeks, if not. >> months of added. >> lift above what you would normally see. >> as a brand. >> if. >> you didn't do the super. >> bowl. >> but the no. but the send from him himself. >> right. >> that you because you rarely see him actually send an ad, right? almost never would he send. >> an error. it's not surprising. >> that he did it in this case. i mean. >> it's a. >> huge moment for starlink, where. >> i think a lot of us are. >> in the know. about what starlink's value prop is, but its average price is 250 a month and up. for consumers. so i. >> think, you know, for. >> the average. >> person, they didn't even. register what starlink could do

for them because. >> it was out of out of their reach. >> so what else happened last night that impressed you? >> well, i thought. there was. >> two other. >> really interesting trends. >> i mean. that that. first one. about t-mobile. >> and starlink is indicative of a practical tech value over the speculative and often generic. >> value of gen i. >> there was a raft. >> of gen. >> i ads that did. >> not perform. >> in our data from the. >> from the likes. >> of. >> google. >> from chatgpt. >> by openai. >> they bought a 62nd spot. >> openai did. >> it. >> did not do it did not perform. >> i didn't even see the google ad. >> google did a couple. >> different ads. they did one for their pixel phone. >> which was. >> a heartwarming. >> spot about a. >> father looking for his next. >> job. and gen i was helping him. >> he was a he was a. >> mr. mom, right? >> and he was helping, but he was helping him practice for an interview. and then they also. >> did a national regional. buy where. >> they had. >> their gemini product. create

50. >> or. >> so different. >> localized ads in new york that featured move fabrics. >> in the bay area. >> it featured. >> hog island oysters. >> so those were clever but. >> didn't land with the consumer like something. >> like t-mobile and starbucks. >> i mean, and starlink, excuse me. and then you had another trend where there. >> was this health curious. >> thing going on in our top ten. we saw a bunch of water brands. >> hit our top ten. >> we had liquid death circle. >> and pop. that was weirder. >> i don't even understand what. >> that is. we're doing it with. water pilots. and yeah, i. >> think. >> they were. trying to. >> showcase that. >> you can. >> drink. >> drink out of a beer, can drink water. >> out of a beer can. >> it's weird. there's also some stupid. thing that you're supposed to use. it makes you drink more water. another one of those. >> like. >> flavored crazy. >> yeah, yeah, yeah. and then you had hims and. >> hers. >> which is bit. >> i don't know what that. >> is provocative. these are direct to consumer. >> pharma brands. >> like ed stuff. >> and it was glp one. >> is what they were pushing. >> and it was a very interesting, provocative spot.

it really challenged people to. >> think about the. >> obesity crisis in. america and really went after the glp one message in a very strong way. >> you know, which ad i hated at the beginning and then liked at the end was the breast cancer ad. in the beginning i was like, what are they possibly pitching on this? >> that was a good one. >> yeah. >> totally irritated me. and then when i realized it was for i was like, oh, okay. >> the one time you ought to be infatuated with breasts is right for the it was early. >> it was, i. >> thought, a very a nice way of surprising the audience and delivering a really powerful message. >> better than one way they're doing it for no reason other than to put stuff on their pits. have you seen those? >> yes. they're actually on our air a lot, so we should. >> oh, those are good ones. yeah, those are those. >> novartis spots. >> both were above our median. >> this is nothing to do with commercials. you probably didn't see it either, but they used ai to look at jimmy johnson's entire career. did you happen to see that? >> i did. >> not see that. it's amazing. from when he was at, he played as a defensive back. then he was at lsu. then he brought in terry

bradshaw. he was he was roommates with jerry jones at arkansas. and it just went all the way through the dallas cowboys and the miami dolphins. and it was a picture of it looked it was jimmy johnson young. it was jimmy johnson middle aged. it was middle jimmy. it was the most amazing use of. and he i mean he was so moved. and those guys love him. you know bradshaw loves. >> him so much. and howie. >> long it was it was he's been there 30 years. yeah i mean i almost got a little yeah. it was really really amazing. that was like the best thing i've seen. i mean, i hope ai is good for something, but we're waiting. but it was. good in that regard. jimmy's been on the show. he's a he's a great guy. he's been on the show a couple of. >> times and i think maybe. >> he's 81 or 82. he's starting. but bradshaw is going to be 80. >> is he really? >> yeah, i think he's 78 now. he does look good. those guys are i think they do. we have i guess i shouldn't say that nbc has people too, but i don't worry about nbc anymore. as much. >> kevin thank you.

>> thank you. good. great to be good to have you on. >> thanks for listening to. >> our my free association. >> here anytime. >> unspoken thoughts i still care about. nbc for like how long, andrew, do we know. >> say till to the end of this. >> year, to the end of this year? >> there might be a service agreement. look, hey, you might. >> want to. it wasn't my idea, okay? all right. i didn't ask for the divorce. >> i own a bunch of comcast stuff. >> you do, i know. oh, good. you're really flush. >> oh, boy. >> i'm going. >> to say goodbye. thank you. thanks, kevin. when we come back, house majority whip tom emmer on reconciliation talks, the president's tariff agenda and much more. let's take a look at the futures this morning. they are flush dow futures now up by about 215 points s&p futures up by 28. the nasdaq indicated up by 150. squawk box will be right back.

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>> for. >> you. >> welcome back to squawk box and market flash for you. take a look at this. shares of monday.com soaring right now on better than expected quarterly results and upbeat guidance. that company also issuing the full release of its ai enterprise service management platform. and the stock is well now about 22% higher. we'll talk about maybe more of that just after this coming up, president trump taking on the super bowl with house speaker mike johnson, who's facing one of his toughest political battles. as speaker, we're going to talk about the ongoing reconciliation talks and the bid to build a budget with majority whip tom emmer and later, national economic council director kevin hassett is going to be our special guest. do not go anywhere. post-super bowl go anywhere. post-super bowl monday. we've got a lot going this is steve. steve takes voquezna. this is steve's stomach,

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the it is the day after. it is the day after majority whip. thank you for joining us. where do you think things stand in terms of this reconciliation process. and what do we have to look forward to in terms of the fight ahead? >> well. >> thanks for having me, andrew. and yes, it is the morning after. and i suppose if you're a philadelphia eagles fan. you're really happy. if you're a chiefs fan, you're not. and if you're an american, you stopped watching probably after the commercials at halftime because it was a big blowout. i reconciliation this week. >> the goal. >> in the house was to mark up a budget resolution. i don't. >> know how. >> many of. >> your. viewers understand that's not reconciliation. that is. >> simply the. >> instructions to. >> the committees that will draft their portion or their section of the reconciliation bill. it has to do. >> with revenue. >> and expense, and it tells them what they should be writing that bill to. it's been. >> a point of. contention in the house. >> where is. >> the floor on. >> savings and cuts, as opposed

to what's the assumption of growth? i think you'll see. we made some progress last. week at the white house with. >> president trump. >> and i think. you'll see more this week. regardless of what's happening in the house, the. >> senate, lindsey. >> graham, as. >> you're well aware. >> is moving forward with a. >> budget resolution. >> in the. >> senate budget committee. so republicans. >> are. >> going. >> to get. >> this done. i still. believe the house will lead. >> what is your take on what the what what the court said about doge on friday and what that ultimately means to how you think about budgets going forward? >> well. >> i'm an article one guy. congress will will determine that stuff. but i'll tell. >> you. >> what. >> doge the whole. >> concept in. >> elon musk, donald trump ran on a campaign promise that he was going. >> to shake up. >> the status quo in washington, dc. >> he was going to make sure that. >> americans could see. >> behind every. >> closed door. >> that they could see. >> behind the. >> curtains that have been. >> drawn, closed for years. >> the. stuff that is being. exposed by by doge and elon musk. it's exactly.

>> what americans wanted. >> i mean, i think there was a cbs poll yesterday, andrew, that had 70% of americans believe. donald trump is. doing exactly what he campaigned on, and this is an example of it. >> i think. >> they're doing a great job. >> let me ask you this, because, look, i'm all for transparency. i love the idea that we get to actually see where all this money is going, and especially when we look at things that have real question marks next to them. having said that, you know, i think i look at something like, you know, us, usaid and clearly, and this is the part that we don't we will we will never understand. right. it's sort of a massive soft power effort around the world. some people could call it a massive bribery effort around the world, but i'm imagining there are little line items for things that you and i would look at and go, that makes no sense. that seems crazy. and yet, for whatever reason, it was done, potentially because there is

some trade off on the other side of it. at the same time, i should also mention that, you know, countries like china with, you know, the belt and road initiative and others are also maintaining both soft and hard power around the world. and how we should think about that. >> well. >> first, usaid, i. think the big takeaway from this whole discussion in the last couple of weeks is. >> that. >> there are those. >> of us, andrew, and. maybe you. >> and i. >> agree on this. there are some. >> programs within. >> usaid, and. >> frankly, all of these. >> different departments that. >> doge and elon. >> musk and his group have been looking into. >> the problem is. >> we should be. disgusted and upset that. the good. >> things that were intended have been literally undermined by people who want to spend u.s. taxpayer dollars on on fairy dust. >> it's amazing. >> the things that they're doing. >> and that's what's getting exposed. >> and when you talk. >> about soft power. around the. >> globe. >> the us influence is still.

>> people want. >> to be the us. >> they know. >> that the relationship when they have it is. >> a good one, as. >> opposed to china. >> which china is just. >> there to make. >> sure. they take. >> your resources. >> and. move on. they don't. >> it's not. >> the. >> quality that the us does, but. >> we're where we. >> are, not andrew. >> that leaves. >> a vacuum. >> well, one of the reasons i raised the question is, for example, i noticed, you know, there was a big subscription to bloomberg, for example, that the us government seems to have. i would want the treasury department to have bloomberg terminals. i would think that that would actually be a very necessary tool in their toolbox, given the amount of money that and treasury bonds that they are issuing. and i would want them to have access to all of that information. if there was somebody in the white house that wanted to have a terminal, i would want them to have it. and so anyway, i raised that just as a one tiny example where i think the american public looks at that, and maybe because i'm closer to it, or i have a i have a view that maybe others

wouldn't have. but right now, if you were to sort of go online and talk to the folks around doge and the like, they would say, wipe out all of those subscriptions. >> yeah, well. >> that's a very interesting approach. andrew. i think you're frankly confusing the issue. the bottom line is they paid. millions of dollars to politico. >> they paid millions of. dollars to the new york times. they paid millions of dollars to these outlets. for what? >> andrew? >> this is. why the american. people need. >> to. >> know. >> what this is. >> and we. >> in congress. >> i. >> doge and elon musk. >> have been a healthy enhancement to the work. >> that great work. >> that's already being done by the. >> men and women. >> that hold election certificates. again, article. >> one. >> we're going to have. >> to pass legislation. >> related to this stuff. >> but the exposure is ongoing. >> and this is what. >> 77 million people voted for. >> this is why. >> they wanted donald trump in the white. >> house to. >> shake up. >> the status quo. what we've been doing has not been working. it's time to chart a new course. and he's doing that. he's accomplished more.

>> this is. >> the third week to the day, i. >> believe. of his. >> administration, and he's accomplished more in three weeks, i would argue, than joe biden did in his entire career. >> what do you make of the steel tariffs, the steel and aluminum tariffs, which have just been just been put on and how long do they stay? is it part of a negotiation? are we going to see it sort of come on and then come off again potentially as other countries maybe change their policies? or do you think it just ratchets up. >> this is a tool. donald trump. >> is the master negotiator. he has used this tool incredibly well. it's been very effective. >> and you don't even have to take my word. for it. talk to biden's commerce. >> secretary, who, in specific reference to the steel tariffs in. trump's first administration, admitted that they were. very effective. so donald trump's. >> doing what donald. >> trump was elected to do. he's putting americans and american producers first. he's making sure that people who have. been taking. advantage of us for

decades. >> now have to treat us fairly. we want to be able to. >> have open and free. >> trade. >> but we want it to be fair, right? >> majority whip tom emmer, we very much appreciate you joining us on this monday morning, the day after the super bowl, were you who were you rooting for? >> well, he was in you were in a box, right. well, you know, i was rooting. where were you, tom? you were. >> sitting next to the president. >> oh, yeah. well. >> he had a good seat. >> look at you. >> but is he not allowed to say what it was? you were just looking for a good game or what? >> i you. >> know what, andrew? >> the truth is, i'm rooting for the vikings. and they weren't. >> there. >> so i wanted a good game. i wanted. >> something competitive. >> because i'm not. >> a fan necessarily. >> of either team. we saw it competitive. >> certainly on. >> one side. >> hey you. >> have you ever seen. >> a pass rush like that? tom? seriously. i mean, that was it's like it's like it's like kansas city thought you know what saquon we got to take care of saquon and totally forgot about

their quarterback or something i don't. or there was just those guys are so big i mean i can't i couldn't stop those guys literally for those guys were running at you andrew when you just moved. >> to the. >> second tom. >> did you. >> guys here's. >> the question, joe. >> they said they. >> said. >> they said. >> kansas city had the better defense. i think. >> that probably was. >> all the incentive. >> the eagles needed. >> hey. >> tom. >> i know, i know the president left at halftime or maybe even before halftime. did you did you guys leave? did you leave with him? and was that decision made because the game wasn't that exciting? or was that because that was sort of always the plan? >> no. >> i traveled with the president yesterday from palm. beach to new orleans. i and then we left when we left because we landed last night around midnight. >> so i. >> don't think it had. >> anything to do with the game. >> fair enough. it's great to see you, sir. thank you for joining us this morning. >> all right, guys. >> all right. coming up, a new read on the consumer from the cnbc, nrf retail monitor. and

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accessories, general merchandise and furniture and home furnishings were hit the hardest. health and personal care and nonstore retailers were among a few of the bright spots that we saw. it's perhaps not unexpected to see a cooling off in consumer spending after that very strong holiday season, but it's too soon to know how the impact of sticky inflation or looming tariff concerns will weigh on consumers into this new year. >> we've got two great interviews coming up to tell you about. national economic council director kevin hassett is going to be with us. we'll talk jobs, tariffs and so much more. and then later, take-two stock jumping after it confirmed the release of grand theft auto six coming this fall. ceo strauss zelnick is going to join us for an exclusive interview. you don't want to miss that and so much more as we come back on squawk box after this. >> opportunities can be hard. >> to find, like catching lightning in a bottle in uncertain times, it's tempting to retreat or. >> simply wait and see. at cme

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that could be worth a fortune. creative medical technology stock symbol sells. >> this is the emirates premium economy seat. >> economy. perhaps they need to call it. something else. >> 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. >> earnings earnings season special coverage all this month on cnbc. >> mcdonald's shares trading higher this morning after quarterly results. you can see that stock right now up by about 2%. joining us right now is one of the analysts who will be on the call a little later this morning sarah senator who is bank of america securities senior restaurants analyst. sarah the loss in terms of the sales decline, it's not a loss, but a sales decline was the biggest in about five years. but

there's a lot here that the street likes. what surprised you to the upside this morning. >> well i. >> think to your point, you know, the. focus that most. >> of. >> the street. >> has is on same store sales growth. so revenue can. move around depending on currencies depending on the portfolio. how much. >> is licensed. >> versus company operated. >> but so what you're really. >> looking for is a measure of the health of the system. and there we've seen international strength. perhaps, you know. >> given what we've heard from some of the other international companies more recently, perhaps not as surprising. but nevertheless, you know, this is the first quarter in some time where. >> mcdonald's has. >> actually beaten same store sales expectations for. >> its licensed market, which. >> is where the middle east. >> is. is reported. >> the us comp store sales, though, were a little weaker than had been anticipated. i think traffic was good. maybe sales were down. is that discounting to try and get people back into the stores? >> yeah, that's exactly right. so the us. >> is still the biggest single market for mcdonald's, about 40%.

>> the operating profit. >> and that is a place where we've had some softness. to your point, traffic was was positive, which is an indication of yes to some extent discounting. we know that the $5 meal deal that they have been running for a couple of quarters now has an impact on same store sales through a lower check. and as they've launched this value menu, that's likely having, you know, amplifying that impact where either people are trading down. >> or people or new people. >> are coming in, but their average spend. >> is lower. >> i mean, i get it for them to continue that that sale, particularly as they were dealing with the fallout from the e coli situation with the slivered onions back in october, i've seen criticism from some analysts about that strategy. what do you think? >> well, i think, you know, to your point, i don't think they have a choice, right. so. >> you know, they can. >> either choose. >> to not have the value, in which case they won't get the transaction. >> growth, or they. >> can offer the value, which.

>> is. >> what consumers want. i think, you know, one of the things that we've observed. >> over, over. >> a couple of. >> years is that. >> mcdonald's, you know, it's been a. largely check driven same store sales number. they've taken a lot of price over time. now that inflation has come down sharply. the industry as a whole is just not taking prices up as much. and certainly, you know, mcdonald's is a leader there. >> what i would say about. >> you know, that the transaction growth is we know that some of these lower price points are particularly attractive to some of the lower income consumers that have been under more pressure because of higher inflation. or various reasons. and so mcdonald's wants to be a value. to all of its customers. and frankly, if you have, you know, as many stores, 14,000 stores in the us as mcdonald's does, you do need to have broad appeal. and that requires, you know, price points. and value that are attractive to everyone. look, you know, what we've said is that. >> this is going. >> to. >> be a reset. >> year for their same store sales in the us. you're going to have check pressure and then you

hope to grow from here. >> we've got to run. but do you buy the stock here just below $300. >> you know we. >> have a neutral. >> rating on the stock. this is a good. >> a very good company. >> but again. >> we're going. >> to continue to. >> see check pressure as they reset their value proposition. >> sara thank you for joining us today. >> thank you. >> it is just after 8 a.m. on the east coast, and you are watching squawk box right here on cnbc. i'm becky quick along with joe kernan and andrew ross sorkin. among today's top stories, president trump says that he is planning to announce new 25% tariffs on steel and aluminum imports. trump teased that while on air force one yesterday on the way to the super bowl. president also said that he will announce tariffs this week, matching all other countries tariffs on the united states. it's what he calls reciprocal tariffs. meantime, china's retaliatory tariffs on the united states going into effect today. the rate for those is 15% on imported u.s. coal and

liquefied natural gas, and other charges on farm equipment and crude oil. and employees of the government's consumer financial protection bureau have been told to work from home this week because the agency's washington headquarters will be closed. the future of the bureau very much in doubt. it's been targeted by president trump and elon musk. the cfpb homepage is down this morning. that follows an email over the weekend from the newly installed acting cfpb director. he instructed staff to suspend nearly all activities, including supervising financial firms. >> by the way, before we go, another headline, because there's just a wave of them that we haven't even mentioned, is that trump is told the treasury department to stop making pennies. yeah, i don't know if you saw that. >> you know, that's been a while coming. >> we're talking. >> about it. >> cost $0.02. i think it's three. every penny. i think it's 3.7 cents to make and distribute. >> they do it at a loss of $85 million a year. and he says every penny counts. >> well hold on to your pennies, man. they're collector's items

now. >> they might be. >> yeah. >> no more pennies. only you pick up. you pick up pennies, right? >> i pick up a penny. >> if it's heads. >> oh, i pick up a penny. >> but i don't pick up tails. really? >> you interesting. >> bad luck. >> okay, so maybe no more pennies, folks. >> if it's bad luck, it's just not good luck. and then why do you want it? >> meantime, five former treasury secretaries warning in a new york times op ed about the activities of president trump and elon musk. department of government efficiency at the treasury department. the piece was written by former secretaries of the treasury, including robert rubin, larry summers, tim geithner, jack lew and janet yellen, all of them signing this op ed. they're warning about political actors from doge assuming control over what has historically been the job of nonpartisan civil servants after trump's inauguration, must team quicklyt the team could stop lawfully granted payments from going out. in an example, the associated press reported last week that doge officials sought access to

treasury systems to prevent money from flowing to the u.s. agency for international development. in the op ed, the treasury secretary is raising concerns over conflict of interest and data security. but they say constitutional issues are more important. they write the following. they say, quote, it is not for the treasury department or the administration to decide which of our congressionally approved commitments to fulfill and which to cast aside. so the debate now moving to five of the most famed treasury. >> democrats. >> but all democrats. >> but but but my favorite. >> it takes a lot for them to all get together. >> and do that. i don't think so, but but no, but i did like my favorite quote was said with a straight face. all of the nonpartisan civil servants that are involved in all of these things, that's a butte. futures this morning. let's take a let's take a quick look. all the nonpartizans at all the agencies that we know now, we're we're not quite as nonpartisan as we

wish they they would have been up there. i mean, you can give me that much, can't you? >> i can give you that. that there was clearly partizan folks inside a lot of these. on both sides making making a lot of decisions that, you know, you may not want them to make. >> right. let's get to mike santoli. totally nonpartisan at all times. mike what's going on. >> yeah joe. >> well we got a little bit of a bump in the futures. it's been a fun pattern the last few weeks. down each friday. and then the trading low for the following week was sometime on monday. so it was kind of a buy the dip monday. maybe we got that overnight last night because futures did end lower. i have the s&p 500 here along with the 50 day moving average to show a really kind of calm and steady index level trend. right here you have the 50 day average kind of flattening out but still pointed higher. it's still in an uptrend, but only about 60% of the stocks inside the s&p are in their own kind of technical uptrend. so it's obviously kind of firing on some cylinders certainly just enough to keep us above 6000. take a look at a

couple of kind of economic bellwether areas that were really strong in the first year and a half or so, almost two years of this bull market, semiconductors and homebuilders that really have faltered. so it's kind of in its way impressive. the s&p 500 has hung in here. financials lots of consumer cyclicals still hanging in there. and then just enough of the mega-cap growth stocks to keep things moving forward. a lot of divergence among those big mag seven type names. take a look at how you guys have been talking about meta. here it is against apple where it's kind of fun that it's been over the last year or so. kind of moving in sync. and then apple i mean meta just completely kind of takes flight to the upside. apple has faltered. microsoft hasn't done a whole lot. part of this i mean, there's so many things moving in his favor on a trading basis, one of which is the earnings estimates keep going up. and obviously there's a lot of other elements going on in terms of how ai applies here, but also the valuation of meta before this was actually at a discount to the likes of alphabet. and so it's kind of getting revalued higher. we'll

see. you know, just exactly how how stretched this move gets, joe. okay. >> that is really something with meta. what was the low on that a couple of years ago. you know, was it 80. >> yeah. >> i mean certainly. >> it was down in that area i keep. >> you know, 700 down mike pence rolled around. i mean, yeah, it's amazing. you know, it's also. >> we don't talk a lot about it, but the fact that zuckerberg owns a chunk of it, like it's got a smaller representation in the s&p 500 than its aggregate market cap would tell you, because you have that founder stake in there. the index doesn't buy all of it. and so it does seem as if it sounds ridiculous, but it's almost like there's a little more scarcity value there. >> right? >> okay. mike santoli thanks andrew. >> coming up a pair of big interviews you do not want to miss this morning. white house national economic council director kevin hassett is going to be our guest. we'll talk about the jobs report d.o.j. the president's new tariff plans and so much more. and then we'll talk to take-two interactive ceo

strauss zelnick on the state of gaming and grand theft auto six. stay tuned. you're watching squawk box and this is cnbc. ♪ ("born to be wild" by steppenwolf) ♪ ♪ get your motor runnin'! ♪ (car horns blare) come on! ♪ head out on the highway! ♪ crowd: hey! hey! hey!

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jolie? >> the water pressure is amazing. >> i. >> our next guest joined us on president trump's vow now to impose new tariffs on steel and aluminum. the white house's reaction to friday's softer than expected jobs report, and much more. let's welcome white house national economic council director kevin hassett. it's good to see you, kevin. >> good to see you, my friend. >> i'm glad you're feeling better. i missed you last week. good. yes. feeling good. got some adjusting, but. but i need that organ. >> can we talk. >> about the treasury letter first? i know we were talking about you. go. right. but you guys just showed it to me. i'd like to respond. >> to it, if. >> you don't mind. yeah, i

figured you would. i barely said anything, but. but i got in my $0.02 anyway from all our. so all of our nonpartisan civil servants that the justice department and all those federal agencies. but go ahead, kevin. you remember all those cia guys that lost their security clearances? this letter reminds me of that. there's so much misinformation. in it. let's just make it clear. the treasury. >> secretary, scott. >> bessent, is in charge of the treasury. the treasury secretary has found that the controls for spending of the previous administration were. >> unacceptable. >> that there is sending money out without. >> knowing where the money was going. they were. >> sending money out without flagging. >> you know what it was for. >> they didn't. check before they sent the money out, whether it was appropriated. >> and as we go. >> in and. >> look, we're finding lots. >> of things that shouldn't. >> have been sent. >> so things that weren't appropriate. kevin. that's a big deal. >> that's it. >> could you know. >> the point. >> is they could be appropriated, but there was no. guarantee they. >> weren't. >> putting in. >> a control to make sure it was appropriated even. and so you've got to add up all that because

they're sending you checks like 50 at a time, 30 at a time, 70. >> at a time. >> and so they're not saying, oh yeah, this adds up to this. and so that's why you can send it now. and so there's a lot of work to be. done to. clean that up. treasury secretary is doing it i think. >> you know. >> elon musk is in the office. >> next to me. >> he's not in control. >> that's the other thing i want to say. >> this idea that there's a puppet master telling the treasury secretary what to do, and therefore all the treasury secretaries need to be, like, alarmed that that's just. >> left wing. >> media, you know, poppycock. >> it's just. >> not true. can i. >> just clarify that we're we're questioning the controls, not whether or not the money was actually appropriated. we don't know that for sure, but that's what. but you. >> but if you don't have controls. you have to then add up what you spent and make sure that it was aligned with what was appropriated. and they weren't even. >> doing that. hey, kevin, here's the question that i would ask, which is, i think i would imagine most, if not all, americans support the idea of looking at where money is going, making sure it gets to the right places, making sure fraud and abuse and all of that is happening that it is eliminated. i don't think there's any question about that. right? i

think the question mark right now is about the transparency of this particular process around the individuals who are engaged and involved in this particular activity, whether they have clearance, whether they've been vetted, how that's worked, and what kind of transparency there is around that process. i would only just say that to the extent that i think you and i actually agree a lot about what needs to happen here, and i imagine that actually the treasury secretaries who wrote that letter or that op ed agree with what what needs to happen. maybe they don't, i don't know. there are a lot of good. >> i think it would. >> help enormously for the credibility of the entire exercise, so that all americans feel really good about it, that there's that there's a little bit more transparency around the individuals who are participating in it. you know, where it's being fed in terms of ai and other things that makes people nervous. all of that. could that be done to try to actually make everybody get behind what you're doing? yeah. >> thanks for that. and i'll give you some transparency.

okay. >> so what's going on is that we have antiquated computer systems. >> that make it hard for. people to do their jobs and follow up the things that taxpayers and these former treasury. >> secretaries want. >> them to do. >> and i don't know how many exact doge employees. >> there are in the treasury department. you could ask the treasury secretary, but i don't think. >> he could count them on one hand. and they're just helping people get. >> good computer systems so. >> that we can check and see. >> what the numbers really are. and the point is, why is everybody. >> so. >> anxious and upset about the fact that. >> we're going. >> to get to the. >> bottom of what we're. >> spending our. >> money on? >> why is that a partizan thing? why is why are we making up fake things about what elon. >> is doing? >> because we're trying to just. >> see. >> where the. >> money is going. and i think. >> it's probably in the end, we're going to. find that. >> a lot. >> of money. >> went to bad places. >> you're wondering why there's a lot of people who don't know where the money was. you're really if you're hiding where the money. yeah. if you're hiding where the. money is. >> going, then. >> how come i can? how come i think i can think of a lot of reasons. a lot of people would

be wanting. so. >> so the. >> one thing i'd like to say is you guys should start a poll. i can't do this. i'm a government official of over under on. how much. money that scott. >> bessett finds. that's actually spent. >> that was misspent. just you guys should. >> start it fraudulently. >> well. well. >> at least more. >> than more than appropriated. i think it's going to be a lot. >> it's going to be a lot. it's going to be a lot. but we have other stuff to talk about. guys, i. >> actually i. >> know you want to talk about steel tariffs before before i've gone to. >> can i just ask one other question to kevin though because because it was something we were talking to tom emmer about, which is, you know, we are seeing that some of these payments and we're looking and going, oh, these payments don't don't seem to make sense. for example, i will use one just one example and i'm not picking on them. i know they're a competitor of ours. but bloomberg people looked at these bloomberg subscriptions and said, why does the government have bloomberg subscriptions? and i thought to myself, i want a kevin hassett to have a bloomberg terminal if he needs it. and i would want someone at the treasury department who's selling treasuries and bonds to have access to a terminal. and so i only say that because i think there's some nuance to what we're seeing. there are going to be subscriptions and

other things that people may have questions about, but there is probably a need for some form of information. i would actually be upset if you didn't have it, but. >> but even. >> on this one. >> okay. >> so let's just go inside baseball that. >> i found that even like. within the complex, that we had too many of those subscriptions. and i think it's completely sensible to have a few guys that really know how to get the answer quick to more senior people, so that you. >> could. >> aggregate demands. >> for information. from that. >> and i agree specifically on. >> that matter that. >> you talked about. we're saving the taxpayers money. i just want you to know. >> i look, if ultimately you get rid of most of the subscriptions, but you still have enough, that's fine too. that's what we're doing. >> that's what the money is eventually going to end up in. mike bloomberg lining his pockets so he can do more climate change hysteria and gun control. yeah. come on. i'm running. >> for this country. >> and let's say blah blah blah. all right. >> oh come on. i mean, i think. >> bloomberg. >> you would agree that he's done amazing things. >> for this. remember when we had his campaign guy and say, just wait till this really takes off? he'd be peaked at about

1.5%. so i don't know. the rest of the country didn't feel quite as as tariffs. >> can we get. >> the tariffs? i want to talk about steel tariffs. that's why kevin's going to let me keep going. go ahead kevin. >> that makes sense. >> yeah. yeah. so president trump has made it clear that an important part of an america first golden. >> age is steel production. and when we put the steel tariffs in. last time, you might go back and look right after. >> the steel tariffs. >> went in. it didn't cause manufacturing to go down. in fact manufacturing jobs in. >> the next. >> couple. >> of. >> years went. >> up about. 120,000 jobs right after the steel tariffs came in. we could talk about why. >> and then under president biden last year, we lost 100,000 jobs. >> and one. >> of the. >> things. that's happened is that there. >> was a lot of increased. steel capacity. >> after the steel. tariffs came in, which, remember, were put in there so that. >> in case. >> of war, we can. >> have the steel. we need to fight a war. that's what the president said. it was a 232 decision. and so steel capacity went way up. and then all of a

sudden. >> there's waivers for. >> this and waivers for that. there's hundreds of thousands of waivers. and so that the steel tariffs that were so effective before have. >> been overwhelmed. >> with waivers. and so president trump as he. >> can. >> do is like, okay, so. >> let's just stop. >> the waivers and he'll do so at a time of his choosing. the order is not out yet. but he said on, you know, to us. >> and on air force one. >> that this is a high priority. >> to make sure that america is. >> ready for whatever may come in the future, and that we've got a strong and vibrant. steel industry. so how are you going to even the playing field? you talk about tax reciprocity around the world and the president. trump is obsessed with balance of payments wherever they are. some people don't think that that i mean, we we're a wealthy country. we're not going to change our balance. we're definitely going to consume more than most of our trading partners because we're able to. kevin, is that the metric we should be using to decide whether there's an imbalance and whether we need tariffs for mexico or for canada or wherever? the reciprocity.

there are different ways to think about reciprocity. but if we're talking specifically about tariffs, just recall that almost every trading partner has much higher tariffs than we do. in fact, the only trading partner that's about where we are. and there's canada and mexico who are part of the trade deal. but but outside of that the uk. >> has about. >> the same tariff we do the eu. it's, you know, 2 to 3% higher. >> you know taiwan. >> it's 10 or. >> 11%. and india and we're meeting modi soon has got a lot to talk about with. >> the president because they have tariffs that i think. >> the. >> trade weighted average is a little bit short of 20. >> now i'm running it out of my head. so don't give me a pinocchio. and but they have high rates that are enormously high their. lockout rates. >> and so president trump. believes that at the very least everybody should agree that if they're charging us 20, then we should charge them 20. >> and then if they go down. >> we'll go down. >> but that's. >> the idea of reciprocity of the terrorist base. >> hey, kevin, can i just ask you, yesterday, president trump said something on the on air

force one on his way to the super bowl about how maybe there was something at treasury where we didn't have as much debt as we thought. is that referring to debt that's already been issued that we might recall or say, is it needed, or is it more akin to what you were talking about at the top, which is. >> it was. >> the top. it was the. >> top as we're getting, you know. >> you know. >> back in the day, radiologists. >> used to say you're getting a wet. >> read, right? >> like they'd get the film out and then. >> they'd look up and they'd say, oh boy, it doesn't look so good for kevin. well. >> the wet read. is a. >> lot of money. >> a lot of money. >> and we'll see. you know, we've got. >> to. >> get to the bottom of it. but it could be that. >> there is a. >> lot of money being spent. >> that. >> doesn't need to be. and that. >> wasn't appropriated. so therefore it will. >> reduce the debt when we when we uncover and stop those payments. >> president comes up with a lot of stuff. some of it seems a little bit impromptu. if you add all the tax on tips, tax on social security, extend the tax

cuts, take off the cap on on social security, you add it all up. and in your previous life you might be pulling your hair out. kevin. there's a lot of stuff, a lot of stuff that would be i think that. >> everything you. >> just talked about, i spoke with him before. he said. >> it while he was. >> sitting in a car somewhere. you don't think that it's not all possible without without running up a big deficit, is it? well. >> well, it depends. >> on what. >> we do. >> with. >> spending and it depends what we do with taxes. >> but the thing. >> i could say, joe, is that the president understands that if you want inflation to go down, which is one of his highest, if not. >> his highest priority. >> you know, in comes the first couple of years under biden dropped $2,000. >> per. >> person after going up $6,000. >> per per family. under president trump because of the inflation. so he. >> wants inflation. >> under control. >> to do that, you have to increase supply and reduce aggregate demand. >> so you've. >> got to cut. spending and you've got to increase supply. and the way you increase supply is you lower. >> the marginal tax rate on labor. >> and you. >> lower the marginal tax. >> rate on new investments. and

so for labor, if you look. >> at the. >> people who aren't working, who really want to be, it's people who have really ridiculously high social. >> security tax rates. >> if we've got. somebody who can work. >> more overtime. >> that's increased labor supply. >> that helps them make a higher income, and it. >> helps reduce. inflation because we have more supply. so president trump's. >> strategy is 100% sensible. and it's all about fighting inflation and. >> delivering prosperity 100% to 100%. that's that 100%. okay. like so maybe there's something he talks about once that was about something else. >> he does go on. >> but i'm. >> telling you that when we talk. >> economics he thinks outside the box increase increase supply. >> we want increased supply. >> and lower aggregate demand that will give us, you know, wealth for the people, wages for the people and lower inflation. and that's what i mean. that's 100% is what the strategy is. i mean, he told brett baer he really is serious about canada as the 51st state. there are some things that you're laughing, but are there times where you're like coming up with ways to defend some things that seem a little bit, maybe outlandish.

>> when the. >> us was founded, how many. >> states did we have? >> okay. hey, kevin. >> how many do we have now? and so, is it outlandish? is it outlandish to dream? some of it seems a little outlandish. i mean, it's crazy to let hawaii and alaska come. it's just crazy is outlandish that we brought alaska in. canada is really mad. >> i got one for you, kevin. >> i think he's telling me. >> they are serious. >> how do you feel about, you know, mike lee? oh. took to x yesterday and said that he wants ron paul to be the fed chair and your your new roomie, elon musk, who's next door to you, apparently said this would be amazing. how do you feel about ron paul in the role of fed chair? >> i love senator paul, and president trump will decide who the fed chair is when. no, ron, not ron. ron. yeah, we're talking about ron. okay. ron paul well, okay. okay. the president, if he decides ron paul, then, you. >> know, we'll understand why he. >> decides that. it sounds like

he's not necessarily on board with that. okay kevin. thank you. >> kevin, you're you are a sport. that's the thing. we're all good sports. we have to be. we have to be. we have to be because we're talking about things that are me, i like it. we're in the news business. i mean, that is true. kevin hassett, i need you a lot to come on, i do, of course. you make me seem normal. thank you. see you later. >> all right, all right. when we come back, why amazon trying to be the switzerland of ai seems to be a bet that is paying off. kate rooney will have that story for us. plus a conversation on the current state of the video game market and anticipation for grand theft auto six it is building. so is the stock price. we're going to talk to take-two interactive ceo strauss zelnick. stay tuned. you're watching squawk box and this is cnbc. >> welcome to reinvented with

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today. go to cnbc.com. slash join jim. >> welcome back to squawk box. take a look at the futures right now. the dow up about 252 points on this monday morning post-super bowl the s&p 500 up about 35 points and the nasdaq up about 185 points. so those folks are calling in sick. may want to actually work today because it's a good day. meantime, since chatgpt has come on the scene, amazon has been criticized for being behind an ai. but as deep tech shakes up the market, some are now taking a second look at amazon's strategy. kate rooney joins us more from the west coast this morning. she is up early as a lot of folks trying to make sense of whether amazon's approach actually may be the winner here. >> yeah. so andrew, at this point, the sentiment around. >> amazon's ai playbook is much more positive right now. there had been this feeling on wall street and in silicon valley that when it came to the ai race, we talked so much about, amazon was caught flat footed. >> which really stemmed.

>> from its lack of a dominant chatbot. so alexa, for example, has yet to catch up in generative ai. and then the choice to invest in startup anthropic rather than developing its own frontier model. so the negativity has really shifted, at least from what i'm hearing. amazon is getting a lot more credit for being what one investor described to me as the switzerland of ai, especially as you mentioned, andrew, after deep seek, highlighted the power of free open source models and then some of the falling costs in the industry. consensus now is these models are becoming commoditized. we're really starting to look the same. so amazon executives have been pretty diplomatic about this, saying cloud customers want choice. aws has offered access. >> to. >> models from meta, anthropic, cohere and now deep sea, as well as its own titan version. aws ceo matt garman told me back in the fall when i asked him about the criticism of their ai strategy, he said, we are willing to be misunderstood for long periods of time. so he was quoting their founder there, jeff bezos. amazon has invested

about $8 billion into anthropic, which does have a large language model. that's one of the leaders. the startup uses aws as its primary cloud provider and then trains on its custom chips. and meanwhile, amazon is still spending big to capture what andy jassy, the ceo, calls a once in a lifetime opportunity. jassy saying thursday during the earnings call. ai is a multi-billion dollar run rate business within aws. they're upping capex by roughly 26% to north of $100 billion this year, mostly for ai. guys, back to you. >> what is your take on this push away from deep seek? you know, here we are talking about deep seek. but there's, you know, folks in washington and others who have genuine concerns, i think, i imagine, about whether some of this information is going back to the chinese and whatnot. and yet i was going to say amazon and their aws service is hosting deep seek, as is microsoft's azure. >> yeah, it's an interesting dynamic, andrew. so i would say

the separation between deep seek the app. if you were to go on your phone and download deep seek, that's where some of the national security concerns come from, that the data that you're uploading, the queries, your location, things like that, personal data would be sent back to china in some capacity. so that's really where the worry comes from, the model that you're able to tweak. and if you're running it and hosting it on different cloud providers, i'm told, is less of a national security concern. so amazon is among those you mentioned microsoft. others seem to be warming up to it, saying have at it, try it, tweak it and go for it. so it's another example, i would say, of open source. meta's got another one being successful and proving that it's cheaper and easier, but i would say the difference between the app and the actual model is kind of the nuance there. although the app itself is similar to tiktok, you know, there are folks downloading it without sort of the thought of, hey, my data is actually going to one of these chinese companies. so it's definitely a real risk and people should be aware of it, especially if they're downloading deep seek directly.

but on the back end, there's a little more excitement about what you can tweak and the capabilities of that model, which a lot of tech people are impressed by. >> the great kate rooney, thank you for waking up. she is not an ai bot or anything else. she talks about. >> ai for the super bowl. >> no less. >> yeah. >> did you understand the story about the deep sea? you can get to like an evil place more easily than with the other. what do they mean? what? where can you go? >> can trick it to ask a certain types of questions that it would tell you about things that openai and some of the other services would not like what. >> you protections on. >> how to build. >> i think unfortunately, around, you know, if you wanted to build a. oh yeah, yeah, yeah, yeah. >> protections against. >> yeah things like that. you can just leave it alone. >> okay. >> i want to give people ideas. >> no. >> they get them anyway if. >> you ask by the way directly, you cannot get those things.

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cnbc. now it has added to the averages to some of the gains we saw early on. almost 250 points on the dow nasdaq up over 200. bitcoin is up a little bit but still below 100,000. i think it's 97,000 or so. gold is at an all time high. almost 3000 right now for the precious metal. >> meantime, our next guest now warning that markets are vulnerable to a correction this year due to either further rises in bond yields or potentially data or earnings disappointments. that's a lot of reasons that this could happen. peter oppenheimer, chief global equity strategist and head of macro research at goldman sachs, is with us this morning. are you predicting this is going to happen, or are you just

suggesting that this is a possibility that we should be considering? >> yeah, andrea. >> it's more a possibility. let me. >> be clear. >> we're positive. >> about the direction of equities. >> we're in an environment. >> where global growth. >> is strong. >> particularly in the us. >> and rates. >> and inflation. >> are moderating. and that tends. >> to. >> be good for. >> risk assets. >> but when we consider. >> how much. >> they've risen. >> in the last 18 months in. >> particular well. >> into the 90th percentile. >> of historical. >> distributions and. valuations are. >> high, they're. >> vulnerable to any disappointment. and, you know, we think a correction is possible. >> certainly not a bear market. >> but a correction. >> and we've been recommending. >> people sort of hedge. >> and also. >> to. >> diversify to. >> improve risk adjusted returns. well, so here's a question which is, you know, we always have, you know, viewers who write in and they say they got a little bit of cash on the sidelines and they're always waiting when to put it in. should they be just dollar cost averaging in or trying or just on some kind of regular schedule? and then there are people like you who come on the

air and invariably they say to themselves, well, maybe i should wait. maybe there's something bad that's going to happen three months from now. and actually, this is not the right entry point. what do you what do you tell them? well, i. >> think you. >> have to put. >> this in perspective for people. >> taking a medium. >> term view or a. >> view through. >> the course of this year. >> we are we. >> are positive. >> we're expecting broad gains in equities. and we. >> are overweight. >> of equities. >> in our asset. >> allocation alongside bonds, which is another form. >> of diversification. >> timing is always of course very. >> difficult, but i think it is. >> important to. >> recognize that. >> investors have put. >> a lot. >> of emphasis. >> on the good news that's coming through, and. >> there is a lot of good news. >> and that always leaves. >> markets vulnerable to. >> disappointment when we've seen a. >> big rise in valuations. >> and a. >> big rise in prices. >> so in the. >> short term. >> tactically there. >> is risk i think of. >> some pullback. >> although that being said the earnings season. >> has been strong,

particularly. >> in the us. >> but directionally we think that. markets are going to make. >> broad gains. but we. >> would argue. >> that investors should. diversify both within. >> the us market. >> and across different. >> regions, just to. >> get a better. >> balance and. >> reduce potential risks. >> in terms of what tips the balance, what's on your list? well. >> as you said at the. >> outset, i mean. >> it sounds a little. >> bit obvious, but, you. >> know, bond. >> yields are around 4.5%. >> there's still concerns. >> about inflation. >> i think. >> if bond yields. >> were to rise. >> much from here. >> given the. >> the higher valuation in. equities relative to. >> bonds. >> that could trigger a. setback in equities. alternatively. >> if we. >> do get. >> any loss. >> in. the momentum. >> of growth coming. >> through. >> in economies, having seen a. >> very strong. >> run of good data, that again, i. >> think would just. >> bring a little bit more risk into the market. >> and push.

>> equities down moderately. >> from these levels. >> but so i think it's. >> really a combination. >> of inflation potential. concerns and. >> and slightly weaker growth. >> but to. >> be clear. >> we're confident. >> about the. >> global economy and. >> economic growth. >> continuing at a at. >> a positive rate, particularly. >> in the us. and we are seeing interest rates gradually coming down. and when you have that combination. >> structurally and. >> from a sort of strategic. >> perspective, i think you. >> want. >> to. be positive. >> on risk assets like equities. okay, peter, i want to thank you. appreciate it. thank you. >> when we come back, take-two interactive ceo strauss zelnick will join us on set for a wide ranging conversation. we're going to talk about the state of gaming, ai in the industry and, of course, progress on the development of grand theft auto development of grand theft auto six. that is all on the business. it's not a nine-to-five proposition.

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>> all right welcome back everybody. shares of video game maker take-two interactive surging at the end of last week. the company came out with earnings and reiterated its guidance, saying that grand theft auto six is still on track to launch this fall. joining us right now is strauss zelnick. he's the chairman and ceo of take-two interactive. and strauss. it was great news on the earnings. you had a smaller than expected loss, but i think the reason the stock took off is because you said, you know, grand theft auto six is still on track, and that not only is great news for your company, it's in comparison to what we've seen from a lot of your competitors, too. where do things stand? what's going on? >> well. >> first of all. >> thank you. >> i actually think the. >> quarter did speak.

>> for itself. >> we had great news with nba two k, which is up 30%. >> year. >> over year. and i think, you. know in. >> this market. >> that was considered really great news. we also have an extraordinary. >> release schedule in. >> addition to grand theft auto six. so we have our. regular titles, our annual titles. >> wwe coming. >> we have pga tour coming, of course, nba two k coming. again in early fall and borderlands four and mafia. >> so we have a lot of great. >> and civ seven. is tomorrow. >> you do stand in contradiction to what we've seen from the rest of the industry. the rest of the industry has shown some disappointing results that have come through, and not a whole lot of excitement. what are you guys doing differently? >> we're doing. >> what we've been doing. >> since the. >> very beginning, which is trying to be. >> the most creative. >> the most. innovative and the most efficient company in. >> the entertainment industry. >> and what. >> really speaks to is our teams are really. committed to that, not just the words, but the actions and the results speak. >> for themselves. >> which. >> is we do have. >> we have. >> the highest. >> hit ratio in the business.

now, i. >> say that today. >> we have. >> to. >> keep delivering that every day. >> and. >> you know, tomorrow is another day. >> what about zynga and mobile gaming at this point? is that still the way to bring in a particularly women? >> it's still a huge business. >> and i still believe it will be. >> the fastest. >> growing part of the interactive entertainment business. and i like the fact that we address all demographics now, because mobile is about half of our net bookings. we also have a big. >> new hit. >> in mobile delivered by our peak studio called match factory. >> by the end of the. >> fiscal should be our number two title, which is amazing because. creating new hits in mobile is really hard. hit ratios are a lot lower in mobile, both for us and our competitors, but we have shown. >> an ability. >> to deliver new hits. the industry is growing. >> but slowly. >> what's the number one? is it candy? candy crush? what's. what's number. >> one. >> at our company? >> yeah. yes. toon blast. toon blast is number one that comes in for all of that. let's talk a little bit about what you said on the call, too. you said that when you look at the ftc under president biden, i believe you called it misguided. how do

things change under the trump administration? what does it mean for your industry? >> look. >> i think what. it means is we'll we'll go back to a place where we have appropriate enforcement of our antitrust laws. and i'm all for. appropriate regulation, but i'm not for is an ftc that engages in losing litigation over and over and over again and actually chills the marketplace. and i will tell you anecdotally. with my friends who run companies during that period. >> of time, most. >> of us were loathe. >> to engage. >> in transactions. >> and that's not what. >> regulation is all about. >> regulation is to protect consumers. >> did it stop you from doing transactions? >> no. >> we closed what. >> now i guess. >> is the second largest. acquisition in the interactive entertainment business's history. >> with the. >> acquisition of. >> zynga for about. $12.7 billion. >> but in terms of doing. >> some other deals. >> i think. >> a lot. >> of people thought twice. yes.

>> do you think it slowed the industry down? do you? it's hard to argue a counterfactual, but where do you think we'd be? >> no. >> i. >> don't. >> think the interactive entertainment business has. >> been slowed down. >> i do think, as i said, there are appropriate times for consolidation. and the ftc should not. stand in the way of that. >> so what what would be appropriate now? what what is this the appropriate time for when it comes to. >> well. >> i have to admit, you know. >> we look. >> at it through. >> our lens, and our lens is an organic growth lens because we've already said that we expect fiscal 26 and 27 to have huge sequential growth and set new records, and that's what we're focused on. >> but if. >> you look at our history, you know, our story. >> really has been. >> organic growth since the beginning, with a few meaningful acquisitions along the way. and the lens, our lens, as i said, is to create strategically. >> beneficial. >> accretive transactions. and believe it or not, many people don't think about accretion. >> we do. >> well, let's go back to grand theft auto. i mean, grand theft auto five is the largest the biggest title of all time. grand theft auto six is expected to be

the largest to take over from from from five for that. what do you all put into it? what does it mean? what do you do to get ready for this? >> well. >> what. >> rockstar games puts into all of their titles is a desire for creative perfection, which is why it takes a long time and why it's complex and of course, nervous making. you know, we don't claim success until it occurs. you're right. grand theft auto five has been the standard bearer not just for our company, but. >> for the industry. >> over three generations. it's now sold in over 210 million units, which is extraordinary. grand theft auto six. what can i say? there's enormous anticipation, both inside our company and in the marketplace as a whole. we couldn't be more excited. >> i'm looking at the graphics right now. i mean, this is so different than when grand theft auto one came out. how much of this is ai and what can we do just in terms of where ai stands in the industry right now? >> well. >> we've been using digital tools since the very beginning. so i would say the interactive

entertainment business is a is , an innovator within what people call ai now. and i don't doubt that we'll continue to innovate. i think it's worth. >> noting. >> though. >> that the genius is. >> human and. >> the tools may be digital, but the creative genius is human. >> but there is an issue right now. sag has a strike that started at the end of july. it's still ongoing for some of these titles that are out there. what does the future pose the creative genius is human. how do you protect and pay those who are the humans? >> we believe. >> in protecting. >> and paying human beings, and we believe that we ought to pay for their work if it's replicated. by ai after the work is done. so we. >> believe that that. >> is the right thing to do, but we. >> don't think it's the. >> right thing to. >> do to ask someone to. perform once, use their work over. >> and. >> over again, and. not pay for it. >> we don't think. >> that's right. i've got a philosophical question for you, which is, as these games get to look more and more realistic, do you have any concerns about them

transferring from players in the digital realm to the real realm? i've got kids, i just ask. i think there was a time, obviously, when all the stuff seemed so digitized that you didn't feel like you were really in something like like this. and whether i know there's been lots of debates about, you know, gun violence and this and that over the years and relates or doesn't relate to, to video games. but i just when you see it like that, do you start to do you have any questions about that for yourself? >> well. >> to be clear, entertainment doesn't create behavior. entertainment reflects behavior. entertainment gives people. >> an. >> opportunity to release feelings and engage in feelings. entertainment tells stories. and the. whole notion of. entertainment creating behavior has been tested and. >> disproved over and over and. >> over again. i, i do think, you know, we have a test case, which is when. >> you. >> watch television and you watch movies of any types. they're quite realistic looking. >> we have human beings very much so. >> so i. >> don't i'm not really worried. >> about photorealistic. >> video games.

>> also. >> just because we can create. photorealism doesn't. >> mean we will. >> so i think for something like nba two k, we will. it already is. >> very photorealistic. but for. >> something like borderlands and borderlands four is coming in this calendar year, that's a. stylized sort of. >> artistic approach that isn't. >> photorealistic. intentionally. so. >> by the way, what do you make? there is this sort of debate in the video game world about photorealistic and sort of what's the phrase? i don't know what the nomenclature would be, something not photographic, not photorealistic, and that. no. and that that there's such an interest in things that are not photorealistic, whether some game makers, possibly including yourself, have and obviously the photorealistic stuff costs even more to build that. maybe you don't even need to do that, because people just love living inside this, you know, almost, you know, world that looks like roblox. >> it speaks. >> to the creative expression. >> i mean. south park is. >> not photorealistic. >> and people love. >> watching it, right? but does that change the dynamic in terms of how you think about, you know, the evolution of certain

games? >> i think when you can. do more, you do more. as i said, it will certainly change the evolution of basketball. it will. >> probably change the evolution of wwe. >> it won't affect borderlands at all. and i think something like grand theft auto, it'll be a question. >> for. >> rockstar games because grand theft auto is a fictional world. it is a world that creates caricatures of. >> the real world. >> it does not really import the real world entirely. so all the brands in grand theft auto are created inside grand theft auto. >> we don't have. >> any real. >> world brands in there. >> are you all going to support games for nintendo switch two? >> we've historically supported all. the big platforms, including nintendo. >> we haven't announced. anything for switch two. >> i have every reason. >> to believe. >> we'll support it when it makes sense. civilization seven. >> which goes live. >> tomorrow, is. >> supports switch. >> okay. strauss i want to thank you. and congratulations on a really strong quarter. >> great to be here. >> with all of you. thanks for having me. >> thank you. >> when we come back, we're going to talk about some top

stocks to watch ahead of the stocks to watch ahead of the opening bell on wall street. it all started with a small business idea. it's a pillow with a speaker in it! that's right craig. pulling in the perfect team to get the job done. i'm just here for the internets. at&t, it's super-fast! you locked us out?! and when thrown a curveball... arrggghh! ahhhh! [crashing sounds] we had everything we needed. is the internet out? don't worry, we have at&t internet back-up. the next level network for small business. ♪♪ i sold a pillow! -honey... -but the gains are pumping! dad, is mommy a "finance bro?" she switched careers to make money for your weddings. oooh the asian market is blowing up! hey who wants shots, huh?! -shots?? -of milk. the right money moves aren't as aggressive as you think. 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.

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>> let's get over to contessa brewer again. now she joins us with some top pre market stocks

to watch. hey contessa. >> hey there joe. yeah mcdonald's of course missed earnings this morning with revenue coming in just shy of consensus at 6.39 billion. adjusted earnings per share of two. 80. wall street was expecting eps of two. 80 for the fast food giant has really struggled here in the fourth quarter with an e coli outbreak and staying same. store sales slumping 1.4% in the us. you can see the shares premarket, though, up 1.3%. the call has just started about 20 minutes ago. a focus on the value menu. we'll have to see how those share prices perform throughout the day. all right. we've got steel stocks climbing. after president trump told reporters last night that he will impose 25% tariffs on imports of steel and aluminum into the us. of course, that broadens his restrictions on some of the country's top trading partners, including mexico and canada, which are among the largest exporters of steel and aluminum to this country. the president did not say when these duties will take effect, but he added he would formally announce those

plans later today. you can see how the shares are reacting. u.s. steel up 3.9%. you've got nucor cleveland clinic's look at that up 8.5%. alcoa up 3% as well. all right. so meta is laying off 5% of its workforce across multiple countries. according to an internal memo reported by reuters. those cuts reportedly will target low performers even as the tech giant accelerates machine learning engineers. shares of meta have been on a tear. they're closing in each of the last 15 sessions, up more than 50% over the last year. they've outperformed all of the other mag seven right now, moving about a percent higher on the day. we'll see if that momentum keeps going up here. joe. >> yes we will. tessa. thanks for thanks for being with us this morning. and earlier, contessa brewer, final check on the markets. the. looking for a pretty solid opening this morning after what was not such a great day on friday there. we're looking at 276 now on the

dow. over 200 on the nasdaq. look at treasuries here that we're in a 4 to 5% range for 48. we are right in the middle. if i get a haircut, if i let it go at you, i'm. telling the audience i'm going right now because. >> i would go for one. >> they got to cut off. it gets very frizzy on the sun. will this prove it's not a wig? if i come in and it looks totally different? can we put that to bed? >> i don't know about the velcro, but sure. >> make sure you join us tomorrow. squawk on the street is next. >> good monday morning. welcome to squawk on the street. i'm carl. >> quintanilla with scott wapner. >> leslie picker here at post nine of the new york stock exchange. cramer and faber. >> have the morning off. >> and speaking. >> of cramer congratulations to him and his philadelphia eagles on. >> last night's super bowl victory over the kansas. >> city chiefs. >> we also wish jim a happy birthday today. >> man what. >> a birthday present. >>