down 100 points on the dow from from where that happened yesterday. what i said if they don't cut bitcoin, there's no reason for. >> me. >> to overreact to yesterday's. no i think that. >> was it. i think. yesterday was the. and we follow treasury. >> we got. >> to go. >> make sure you join us tomorrow. we'll talk all about it. squawk on the street is next. >> good thursday morning. welcome to squawk on the street. >> i'm carl. >> quintanilla with sara eisen. mike santoli here at post nine of the new york stock exchange cramer and faber have the morning off. futures holding in there. despite the slightly warmer than expected ppi number and the prospect of retaliatory tariffs from the white house today. yields a little bit lower across the curve. a lot of february quarter earnings movers including cisco up six. >> a roadmap. >> though is going to. >> begin with. >> deleted elon musk calling for the u.s. to, quote, delete entire federal agencies comparing them to weeds. >> plus earnings watch as carl

mentioned, cisco riding the i wave. deere seeing a farm slump and momentum names like reddit applovin robinhood seeing big moves here premarket put ceo vlad tenev joins us later this hour. and apple's i play josiah confirming that alibaba will power ai on iphones in china. >> let's get right to this morning's ppi number. we are 4/10 was a little bit hotter than the 3/10 we were looking for. mike some of these year on. year we'll take you back to early 23. but the second look at cpi yesterday was really about maybe it's idiosyncratic. >> moves in. >> cable and satellite prices. >> and certainly. >> food was the main worry there. >> yeah. people were over the course of the day looking for loopholes or looking for ways that it might not be the start of a new trend of acceleration in inflation and in today's ppi. a couple of things. i mean, yes, on the core level it was more or less on target. and then the immediate gain becomes how does this translate into the fed's pce inflation reading, which is to come and which has a lot of

relevance from some of the components of ppi? and that reading was pretty benign. so those were some softer areas of ppi. i think yesterday's market reaction was also interesting. while you did have a pretty pronounced little pop in treasury yields and a pricing out of another fed rate cut pretty decisively beyond the fall. it still kept everything in the range. i was talking about that yesterday. nothing really got blown out of this kind of territory. we've been going around in yields and in the stock market. it finds a way to support itself. it's obviously suggesting that we can do without for now, any more help from the fed if things stay as they are. i mean it's very contingent. the market's really kind of like jumping from rock to rock to get across the river here. it's, you know, it seems like we're losing the leadership of industrials. there's certain kind of holes in a lot of the bullish stories. but the overall index really finds a way to stay supported here. >> tom lee suggests maybe it's because investor sentiment is already pretty bearish. and

it's. >> a discussion. >> i yes i sentiment collapsed he said december january meaning investors had been de-risking. so maybe that takes some of the pressure off. >> it's really i agree with him that it's very conspicuous. in fact, today's number on i had 47% bears. it jumped up to 47% bearish 28% bulls. that is unusual in an uptrend in a bull market, when the market is within 2% of a record high. however, i don't think that's a clear read on what smaller investors are doing. i think there is an overlay of caution. the news flow has been very noisy. i kind of like your older buy and hold crowd, and they're just kind of very, you know, week to week they're going to kind of swing with the headlines and then you're seeing crazy retail trader activity and a lot of the names that are moving today. yeah, we're. >> going to get. >> to some. >> of the double. >> digit movers, whether. that's a trade. >> desk or. >> datadog today. crocs. i think, though. cisco probably is worth mentioning related to that. >> i trade because. >> they are on pace. >> now for.

>> $1 billion in ai. infrastructure orders. >> for fiscal 25. good notes out of rosenblatt today. >> barclays goes to 61. >> rosenblatt to 80. it's up this morning. >> yeah. so the story is coming together on that front. it's not huge numbers. they don't have really you know acute gearing to the ai trend. but they're getting a boost. it was a slow growth story before. obviously things are coming through. and there's also been some some of the sell side reaction, noting that while cisco does have substantial exposure to government spending, it's mostly in the defense department. it doesn't seem particularly vulnerable to whatever cuts we might see out there. it's obviously been a cheap, cheap stock in tech for a very long time. and, you know, therefore has room to kind of capitalize on this upgrade in in earnings performance. >> you know, just thinking about the market reaction. you know, it was tech that helped lead us sort of out of the gloom of yesterday post cpi. i mean some of the tech stocks really caught a bid. tesla for instance, was doing better than it had been

meta continuing its incredible streak. >> at 18. >> right 18 in a row. unbelievable. we'll talk about it. but just on on the inflation and how much. >> of it you should be. >> worried about. i think powell also made it not a big thing. yesterday even though he wasn't directly asked about it. shockingly, in the early part of the hearing for the house financial services committee, he did talk about. inflation and where we are on that journey. >> listen. >> we've had made great progress toward 2% last year. inflation was 2.6%. so great progress, but we're not quite there yet. the cpi reading was above almost every forecast, but i would just offer a note of caution on this two notes of caution. one is we don't get excited about 1 or 2 good readings, and we don't get excited about 1 or 2 bad readings. the second thing, though, is we target pce inflation because we think it's a simply a better measure of inflation. and so you need to know the translation from cpi to pce. and we get more data on

that tomorrow. >> so we'll get that. that's the cpi today tomorrow on the input i mean i haven't seen any revisions on pce yet. we're still expecting a 0.3% increase. it should come out in the end of the month. it might be in the high twos now instead of the low twos. >> i think that was the initial goldman. goldman did. >> tick up a few basis points. i think now looking at 0.35 from from their prior 0.32. but you're right. the other. >> thing we had was. >> we got a. >> budget resolution. >> in the house. >> we got the. >> president talking about talks with. russia about ukraine. although zelensky is on the tape this morning saying there will be no deal without us involved. mike, the other thing i want to get your take on. >> are two notes. >> yesterday one btig saying stick with non us because of the outperformance in europe so far this year. and then goldman on flows saying we're about to enter a period of negative seasonals. >> that is a little bit of an approaching potential headwind. it's amazing. since the election europe has been trouncing the us. obviously it was a hated hated market. it's very tough to

make the fundamental case, but also a very top heavy market. so it doesn't take a lot of particular themes to start moving. it also, of course hong kong china markets ripping. so there has been this big mean reversion trade outside the us. and it coincides with maj7 stalling on a relative basis. obviously we saw some strength. you know meta. you guys mentioning it since the inauguration through yesterday's close meta had added $286 billion in market cap. tesla had lost $289 billion in market. it was just essentially moving the money from one to another and keeping the overall more or less intact. >> that's funny. well we also have tariffs. to deal with today. and let's turn to washington because president trump is teasing that he will announce those reciprocal tariffs later today. eamon javers is at the white house with the latest. do we know anything about the size and scope of what this is going to look like? >> we don't know anything about the size and scope. >> of what this is going. >> to look like. what we do know now is timing the president just putting out a post on truth social just a few minutes ago, saying that the event will be at 1:00 here at the white house

later today. here's his truth social post from last night, in which he talked about the success that he's had over the past couple of weeks and the fact that he's going to do reciprocal tariffs today, that post going out last night saying, oh, that i'm sorry, this is the post from just about ten minutes. ago saying 1. >> p.m. in the. >> oval office today. so that's what we know. so the question is what is the president going to be announcing and how much jell-o is going to be in the bowl here on these reciprocal tariffs? my understanding, from talking to white house officials over the past 24 hours is that this is very much a moving target, has been over that time frame. they've been talking with foreign leaders around the world, a lot of industry groups calling wanting exemptions for their industries, for different regions around the country. the way this has been explained to me is that all of those details are being hashed out through the day yesterday. it's not clear how finished they are. and so one of the things i'll be watching for is whether this is an announcement. of tariffs

going into effect today, or whether this is an announcement of some rollout plan in the future for tariffs that are still to come. will there be some kind of time frame on this saying, you know, this might not happen. >> for 30. >> days, 90 days, 180 days, something like that. because of the nature of that moving target through the night last night and through the day yesterday, the. >> other thing. >> that i'm told is that the president's been very resistant to the idea of exemptions for tariffs. a lot of people have been asking for carve outs and favors. and, you know, the president views that as. sort of trying to. turn the block of cheese into swiss cheese. he has resisted a lot of that. but we'll see where we land later on today. meanwhile, overnight we saw elon musk saying he wants to delete federal agencies. here's what he said at an event overnight. >> i think we need. >> we do need to. >> delete entire. >> agencies as opposed to leave. >> part of them. >> behind, because if you leave. >> part of them. >> behind.

>> it's easy. >> it's kind of. >> like leaving a weed. if you don't remove the roots of the weed, then it's easy for the weed to grow back. but if you remove the roots of the weed, it doesn't stop weeds from ever growing back. but it makes it harder. >> so it goes without saying that there is no delete key on the keyboard in the white house to delete federal agencies that, you know, congress creates the spending for, creates the law to set up federal agencies. so you know how much of that the white house will be able to do, how much of that doge will be able to do will really be up to the courts. and i think a lot of this will be challenged in the courts, as they've seen so far. the president has said he's going to abide by court rulings. he's going to appeal them when he sees that to be necessary. and we'll see what the supreme court ultimately says. on whether this white house has the authority to delete entire agencies, or whether the. >> power of the. >> purse and the power of creating those agencies in the first. place rests with the congress. so a lot of moving parts here at the white house today, guys, speaking. >> of. >> deleting eamon this morning, a story on the tape. about the state department's plans to buy

$400. >> million in. >> armored cyber trucks from tesla has now vanished, according to bloomberg where. >> again it. >> feeds that discussion of just how close. >> elon musk. >> is to some of these. >> actions that affect his own business. >> yeah, and that goes back to the conflict of interest question. right. if he's rooting out waste, fraud and abuse, you know, is buying armored teslas waste? i mean, some people would say that it is. other people would say, you know, they need armored vehicles in the military and in the government. so why not. >> buy teslas? >> you know, but if elon has control over that kind of spending or vast influence over it, is that ultimately a conflict of interest? if i'm ford, you know, and or other makers of armored vehicles, i say, you know, that's not fair. >> on the tariffs, eamon. it is. interesting that he's hosting. >> modi from. >> india today because i was looking. so india has the 10th biggest trade deficit with the us $35 billion. i mean they do also have high tariffs. so as far as a poster child for

reciprocal tariffs, even in our interview yesterday with peter navarro, he mentioned europe and he mentioned india. so is that going to be awkward? >> i think it might be awkward, right? i mean, and the question is a lot of these countries, as they approach the trump administration, are trying to come here to the white house with some kind of peace offering, some kind of symbolic large gesture. so we'll see if modi has something like that planned. you know. >> maybe lowering. >> tariffs could be one of those things. we'll see. but yeah, it could be awkward. that's why the other thing. yeah. the last thing eamon, is this piece by chrystia freeland of canada in the times today where she calls tariffs on canadian imports an act of self economic self-mutilation and basically says that if america is going to go ahead. with this, we're going to, quote, find some friends elsewhere to the degree they can also a page on a. >> piece on. >> page one of the la times. about a so-called boycott of american goods by canadians gaining some ground. >> they argue.

>> yeah, look, and that's the risk of tariffs, right. is that you? you grind sand in the face of your allies and friends. you free trade relationships. this president, though, feels that those costs are worth paying whatever they might be. and he doesn't fully believe that all these threats of boycotts and things will come to pass. but he believes whatever the costs are, those are worth paying in order to have domestic manufacturing, domestic production of steel, aluminum and. >> the like. >> that we simply need to reset america's trade relationships around. >> the world. >> and that's going to come with some short term pain. >> i mean, sure, there's risk of that, that we're not reliable partners and not doubling down on on our allies. but a lot of that is also political posturing. they're running an election in canada. what are they going to do, turn to. china as their ally? i mean, that doesn't seem very realistic given the geography and the values of canada, but i guess we'll see. >> i don't know, there's a lot of trade between canada and china now. i mean, you know, that is the risk. but there's a lot of political posturing on

all sides, right? i mean, as i said yesterday, i mean, trump is a hardliner, but he's something of a flexible hardliner in the sense that he's willing to take a very hard rhetorical approach and then back off that to something much lesser if he gets what he sees as a deal on the other side. so he's he's a deal maker, he's flexible. all of these things are moving targets at all times. >> right? >> the question, of. >> course, is what. >> is what. >> what accounts for a deal? is it. >> a trade deficit? is it a drug war? >> is it a revenue enhancement? >> all those things are. >> yet to be determined. >> maybe buying oil. >> in the case. >> of india today. >> american purchasing most of their. >> oil from russia, right. >> and not the united states. so it is interesting i would just say that the dollar is weaker right now. that's going to be the first place you turn when these tariffs are announced. it's been strong dollar weak on who gets tariff. and then we'll see the market reaction. it's been a very reactive market now to tariffs not proactive because we just don't know what it's going to look. >> like exactly. >> still to come this morning some high flying earnings movers. >> a lot of them moving. >> double digit. >> robinhood is one of them. >> applovin will watch reddit. >> crocs fastly hertz all moving

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with a qualifying trade in. don't wait, call, click or visit an xfinity store today. >> smart. >> find an. >> advisor at smart asset comm. >> welcome back to squawk on the street. check out some of these moves. robin hood, dutch bros, applovin. they're all surging double digits in the premarket on results. reddit and trade desk shares down sharply on their numbers. and speaking of robin hood, we will speak with ceo vlad tenev later this hour. how about applovin, though? because that was the biggest winner of last year. up what, 700% or so, adding another 30. so this. >> has been an. >> interesting sort of tale of two stories. that's going to get a lot simpler now, because what we learned in the earnings is that they're going to spin off their apps business. they had all these gaming apps, but it's the it's the advertising business which has been. the moneymaker and why the stock has gone up like that. so now they've officially confirmed they've got a buyer for the gaming apps, and they're going to focus on this ai powered ad business, which just continues to grow. and it's why it's a

moonshot. >> absolutely. the common thread among these is obviously earnings momentum is at the base of it. when it looks robinhood dutch bros applovin some higher than than average short positions because people always want to take the other side of these high momentum names. and then just something thematic that's going on that feels like it's a longer term structural trend. now, applovin is interesting. it was as they were reporting earnings. trade desk was on the downside, very, very different realms, but also kind of a programmatic advertising play. trade desk sort of had a misfire in the quarter. and interestingly, on reddit there was also some noise in the quarter based on it not getting as as as good position in google search as well. and so there's all this friction about like, who's got the right stuff, the right formula to kind of get noticed in the moment based on, on current, you know, browsing and advertising trends. >> 73% increase in advertising.

top line for applovin. and i think that the ceo even compared some of the user engagement metrics to social media. and so some are wondering if it's the next meta. i don't know if that's a stretch. it's obviously not a social network, but in terms of the advertising giant that it has become. >> it's pretty fascinating. i mean, this goes right to what i was talking about before, about how you have this hyperactive sort of set of retail favorite stocks that just don't quit. and they're not really susceptible to macro fear. they're dislocated from from the rest of the market. and they kind of are their own stories. and every day there's a massive flood of buying interest in the in the options. >> but it's just retail. it's not institutional. >> no, of course it's all of it. but they're just higher than than average retail participation in them. and so they just catch catch the jet stream and that's how it goes. >> my favorite name this morning is dutch bros. >> yeah. >> that's going to open up sharply higher a beat. they guide above comps. we were looking for 1.6. we get 6.9.

>> which is. >> going to. >> be their best. >> annual comp in at least a couple of years. >> and that's with. coffee futures again at an all time high. it's pretty amazing as far as i can tell. they sell like big cups of iced sugar. i mean, so i don't know. and through these drive thrus and stuff. >> hazelnut truffle mocha and candy cane mocha where the holiday hits. so yes. >> exactly right. i mean, look, how is it not going to be one of these day trader favorites when the symbol is bros? okay. and that's kind of the way it's going to go. but even at this with all this earnings momentum, i don't know, 100 times forward earnings. chipotle never traded there. but fast casual happens to be the davis research has a piece on this. one of the strongest micro themes in the market. they are a huge grower in this area. and it's sort of got also this resonance in terms of the customers and the users. and it's all at bay. >> so in other words. >> like this in your face. >> a lot. >> cramer loves bros. >> how about a one year. bros versus starbucks. it's not that

they were that. >> divergent but. >> bros just took off and left. >> it just took off. yeah. no it's. >> a fraction of the size. yes yes. right. but but their loyalty program is working. i mean, the ceo had some positive commentary on the call, particularly about consumers and about the loyalty program, and that we continue to observe. >> that customers. >> have just years and years of potential store growth. >> from their frequency. >> sure. >> and mobile order penetration is more than twice the level of our overall system in some of our newer markets. right? >> so there's a lot of. >> consumer names. we got nestle, unilever, we've. >> got wendy's is on the tape as well. we'll get to all of those. we'll get to apple and alibaba. >> as well. >> announcing this new partnership together i got details on that as we'll keep an eye on futures and a relatively sanguine look at this ppi print in terms of what's going to eventually feed into pce. as eventually feed into pce. as sara said, stay with us. business. it's not a nine-to-five proposition. it's all day and into the night.

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reciprocal tariffs announced by the trump administration this afternoon. looks like we are headed for a higher open adding to weekly gains. we'll be right back with the opening bell. >> overtime is about understanding what just happened in the markets that day and preparing for tomorrow. i'm looking to talk to all investors, sophisticated investors, beginning investors. i'm

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income alternatives and responsible investing. alibaba's chair joe tsai. confirming that the company will partner with apple. to roll out ai for iphones sold in china. not the only story, guys, as we also get these reports. tech tech crunch is one example that apple is exploring humanoid and. non-humanoid robots. >> which is a big part of. >> the bullish thesis for. names like, say. >> a tesla. >> over at morgan stanley. >> yeah, apple's trying to get back in the club. you know, they were all of a sudden recast as a potential ai loser. really a lot of pronounced downward revisions in terms of what the china business would do if i didn't know any of that, i would say, yeah, it bounced above 220. that's where it should have bounced. that was basically where the upward trend comes in. and now it's building on that. and again, this is the way the mac has been just trading off strength and weakness and essentially keeping everybody not too far from the center of

the game. >> i mean, there was a little suspense in this announcement from apple and baba because originally we thought. >> maybe they would. >> maybe they'd partner with deep sea, you know, in china they needed an. >> ai partner. >> maybe it. would be baidu because they've already had a partnership. but those guys did say they were very selective. and in the end, they chose to do business with us. they want to use our ai to power their phones, potentially giving apple a little bit of an edge against some of the local competition, which we know has been a problem for apple and tesla. they have to compete with the homegrown companies. >> and i mean, bob is up from like 85 to 105in a month. yeah. yeah. so that's been that trade is definitely rocking power at. >> the. >> big board today. >> national association of water companies celebrating its 130th anniversary. at the nasdaq. >> and cybersecurity. >> company sailpoint celebrating an ipo. today we're going to talk to the ceo in about an hour. >> some reports. >> yesterday a pretty. >> healthy demand. >> we'll get into all of that. >> meanwhile, 6065 mike bespoke points out we did hold the 50

day yesterday. although they argue since january began a series of lower highs on that front. >> yeah, you've been above 6100 like three different times. i think in successive weeks or so. never held it. each high was a little bit lower. i think it's much more, i think best seen as a kind of a of a tightly coiled trend and basically kind of the lows have been have been higher too. and it is just a real function of this constant rotation. its breadth hasn't always been great, but we've managed to kind of hang in there just enough. and some of it is almost deterministic based on these levels. we've been around 6000 for so long that you have these accumulated exposures. we have expirations in the vix and then the indexes in the next several days. maybe that releases into what you were saying, carl, about late february seasonality turning a little bit less positive. that's part of it. the indexes should be freer to move. you do have a flows kind of, you know, kind of waning a little bit after the

new year flush. and so i think there's just a little bit of an openness to a lot more back and forth. although, you know, sara, that that decline in bullishness in the i survey is usually, again in a bull market, a positive forward looking sign. it does show you there's a reserve of caution that the market can draw on. >> and maybe that's what's happening here with this resilience. i mean it has been resilient. if you told me that we got, you know, the biggest jump in core cpi in a few years and the biggest monthly jump in. cpi in over a year, and then that translated into higher wholesale inflation than expected as well. i wouldn't have thought that the market would take it as well, especially on a day where we're getting reciprocal tariffs to all of those have acted as headwinds before and the market is remaining really well. >> and i think you could argue they are headwinds. and that's why we're not maybe up more on double digit earnings growth. and the fact that you're, you know, got 2.5% real gdp. so it is you know you have these offsets. the market's able to kind of hang in there with all of that. >> that's what i was going to say on the offsets. i mean good

earnings. how about mgm. that's at the top of the market right now. it's the best performer in the s&p 500. strong results for the year 7% increase in revenues. macau definitely came back 25% year over year. rise in the in the segment there in terms of earnings china revenue 4% rise. digital revenue grew 15%. they said that mgm is going to be profitable in 2025. and some commentary on the general business here that we can share with you from the from the ceo. we're encouraged by the strong demand we are seeing in the business so far in 2025, which positions us well for continued growth. in fact, december was our highest convention booking month on record, and in january we saw revenue growth in our las vegas strip resorts and regional operations, as well as strong future bookings, so that bullishness is helping propel mgm to the top of the market. >> yeah. >> i did want to mention deer. we didn't really hit that. it's down about 5% on results. this has been one of those oh no. oh yeah. it is down i think about

5%. i thought it was the mgm quote right there where essentially last quarter there was a lot of talk of this is the trough we're going to actually see demand pick up. the guidance was a little soft for the full year on those results. but at the same time it's been a very strong stock. it's as expensive as it's ever been. basically on a forward p and as great a premium to caterpillar on a pe basis as it's ever been. so you've had this sort of favorite status. people do love it. it's a great, high quality company. there's an ai component to it. it is a little bit more of a high tech story, but it seems like it's just sort of strayed a little bit to the bullish, expensive side going into, again, a number where it's a little bit of a noise factor in there in terms of what demand is going to look like here. i guess the farm economy. some questions about exactly how aggressive farm income is going to be given a lot of the movements in in spending around the world. >> i mean, they're definitely. >> more indexed to ag than caterpillar versus construction. >> there's also. >> been a. lot of history

reminders. about how the farm economy. >> was supported. >> in the last. >> trade war, for sure. >> by some of the proceeds from those tariffs. in fact, a lot of them went back into the making sure farmers were protected from an income statement. >> there's no doubt i don't think anyone's too concerned about, you know, wholesale reductions there. but nonetheless, it looks like deere, one of the favorites in industrials, is backing off just a little bit. >> i mean, i've been watching energy to the sector is underperforming today. it's down 7/10 of a percent. but just with all the talk going on about russia and ukraine, the phone call between putin and trump yesterday and peter boockvar this morning in his note asking some key questions about if, if, if the war were to end, what would that look like for gas imports to europe, for business between europe and russia? i mean, all of this is very unclear, but we forget it had a huge economic impact and an impact on the energy market. there's also increasing talk of a war heating up again in gaza. president trump offered an

ultimatum to hamas to release the hostages on saturday, or else there would be hell to pay. we don't know what that looks like, but we do know that israel is prepared to go back in there again. you know, we watch oil and energy. it's not it's not higher. >> no. in fact, wti this. >> is a new. >> low for the year. so far. >> we should. >> also mention, you know, we. >> have been. >> keeping track of some of these corporate. >> layoffs l. >> of laying off 7% kohl's laying off 10% of corporate. and then yesterday chevron. yeah up to 20% by 2026. >> these are all efficiency pushes. >> but it. >> is an interesting. >> timing given. >> that we're. >> also looking at the prospect. >> of government layoffs and trims all over the place. >> i mean it hasn't showed up in the jobless claims number. i'll tell you that. we got jobless claims today. again, another pretty benign number. in fact, the weekly number of americans filing for jobless claims fell by 7000 to 213,000 last week. so efficiency cuts, not mass layoffs, i think is the way correctly. >> the journal's framing today.

>> though, is for those who either take the government buyout or who. do get laid. >> off. >> what kind. >> of job market are. >> they entering? >> given that the. >> hiring rate. >> is close. >> to. >> recession lows at the moment, just. >> about 3%. yeah, you've actually seen the soft spots within within the job numbers in things like personal and business services. you know, in other words, white collar along with, you know, we talked about construction software engineers. openings have plummeted. everyone's looking to do it with, you know, with with ai. so yeah, i think it's spotty. although you're right. i mean, right now you're starting from a position of relatively firm conditions and the burden of proof is on those who say it's, you know, it's going to get worse a lot faster from here. >> your mgm news, definitely. all the. >> casinos are moving. >> rcl is moving. >> on. >> this dividend hike. and then interesting week. it's been for, for. >> at least the beer industry. molson coors one of the big gainers today. we saw the heineken numbers earlier in the week. >> surprisingly good. >> coors brand volume was down

3% in the quarter, which actually they did say, according to the ceo on the call, was an improvement throughout the third quarter. more pronounced value seeking behavior during the summer is how the ceo phrased it. but i think there's it's no secret that the alcohol business is under pressure right now, and beer and beer in particular was already weak going into this. and now with this new trend of people drinking less alcohol, whether it's tied to glp ones or more health conscious consumers, or more studies showing that alcohol could lead to diseases, the surgeon general before the surgeon general from the biden administration, who wanted to label alcohol as a cause for cancer. all of that's in the mix. also, we are waiting rfk jr's confirmation vote this morning could come as soon as this morning, where he would be confirmed he passed that key, you know, out of committee vote to become the secretary of health and human services with jurisdiction over the fda. >> we do wonder if it's a maybe sell the room or buy the news kind of thing on on all of that, right? in other words, how much

worse is it going to get, especially when we're looking globally, you know, we'll see. i mean, if it really seems like it's more to come. >> packaged food also has been under pressure on the rfk stuff on earnings. i mean, it's been kind of a mixed quarter. but nestle one of the biggest out today, organic sales growth was 2.2%, which was actually a little bit better than expected. but is a is a pretty steep slowdown from what we have seen from recent years. last year we were in the 7% on organic revenue growth. so the stock, i think, is reacting to better than expected news. but, you know, again, and the comments on north america week, our growth was disappointing. the consumer demand was weak, particularly at the lower end of the income spectrum. we lost share in frozen food. we were held back as well in coffee creamers by capacity constraints for most of the year. it's the food, food, grocery business. it's tough out there. price. price conscious consumers are changing their behaviors. >> yeah, we talked about kraft yesterday. >> unilever is down 6%. got a

downgrade. double downgrade. it's actually following you know to the downside. meanwhile another big mover is robinhood adding to the strong start to the year up. >> around 70%. >> in 2025. >> and joining us first on cnbc. >> is ceo. >> vlad tenev. >> with. >> our kate rooney. hey kate. >> hey carl. good morning vlad. it's great to see you. thanks for being here in person. >> thanks for having me. >> so big quarter for you guys. stock is up double digits overnight. crypto was the big driver ton of trading activity. and you think about q4. that was really the post-election rally that you saw. what kind of momentum are you seeing in this quarter into 2025? and what signals are you seeing that that can potentially continue? >> yeah, q1, q1 has. been strong so far. we've seen the momentum continue. and, you know, crypto has been a big story. obviously it's done well since the. election and our crypto revenues were up 700% year over year. crypto volumes up over 400%. but it was also a balanced quarter. i think.

>> one of the main. >> advantages of robinhood as a platform for our crypto traders is you can also trade options and. >> equities and. futures alongside. >> earning a high yield. >> on your cash. >> and so there's just many reasons why you would move your assets. >> into robinhood. >> and that drove net deposits to over 50 billion for the year, which was up a. >> very large. >> amount over the previous year. so crypto i think gets the headline. but it was just a. diverse quarter with. >> you know, now. >> we have. nine nine business lines generating. over 100 million. >> in annual revenue. >> how much of an overlap is there between that customer who's trading crypto and trading options and equities and everything you talked about? >> we tend to see that for our active traders, they actually tend to be the ones that adopt all of our products. >> they're adopting retirement more quickly. >> they tend to adopt crypto. and trade crypto. they go between assets. so they've been adopting futures, which is a new a new business that we have. and

then robinhood legend, you know robinhood legend was a little bit of a dark horse in this earnings call. but we announced that that's already a $15 million business after. just two months of being live. so that's been that's been growing incredibly quickly. >> and that's where professional traders that legend just to be clear. yeah. >> that's our that's. >> our desktop platform for active traders. >> you also talked about se other asset classes sports gambling or sports contracts. it seems like it's a big opportunity. what went down with the super bowl contracts. you guys launched that. and then the ctfc intervened. with that backdrop, do you feel confident that you can actually get into this sports contract arena? >> yeah. i mean. >> let me let me just say that prediction markets are the future. i think they're the future not just for traders but also for news and information. so i've been a big believer in the power of prediction markets for a long time. and i think there's a ton of value both both for trading and also as a source of information. so we're going to be we're going to we're going to be going big and we're going

to be a leader there. we were disappointed in the cftc's sort of like way of handling that. i think, you know, the fact that others it was okay for others to offer this product. but, you know, for robinhood, it was not, i think was not ideal. but we're going to continue to push for clarity here. you know, we recognize there's not a lot of clarity because it's a new innovative asset class. but i think we're going to push for that and we're going to get that. and robin will be a leader in offering these new innovative products to consumers. >> have you thought at all about a potential reputational risk? you know, there was a time a few years ago you guys were fighting this perception that that robinhood was gamifying stock markets. you guys have come so far from gamestop and now you have retirement accounts. you're going after this more sophisticated trader. do you worry about getting into sports gambling and what that might mean for some, you know, in terms of the perception of robinhood? >> yeah, i mean, i think that these prediction markets are qualitatively different than sports gambling for a couple of

reasons. one is these are cftc federally regulated event contracts. and what that means is instead of, you know, betting against the house or setting a line, this is an exchange, a designated contract market where buyers and sellers are meeting. so you're not, you know, setting a line. so i think it's very different. i also think that, you know, if you think about the news, right, i like to think about prediction markets as the next generation of the news. and we know the news is economically valuable. you know, people pay for getting the newspaper. they pay indirectly for shows like this through advertising. and so if you get the news before it happens, that should be even more economically valuable. so i think a lot of people, it's easy to just kind of lump it in with, with gambling. but this is a liquid market that gives people

information in real time. and i think there's a ton of economic value in that. >> what about private markets? you wrote this op ed in the washington post. it was fascinating. you talked about this retail revolution, but the accredited investor rules that lock, you know, everyday investors out of openai, out of anthropic and some of the biggest names in private markets that don't seem to want to go public right away. how are you positioned if those accredited investor rules change, and do you expect the administration to take that seriously? >> i think that's one of the things we're going to be pushing for. i think right now we're in a bit of a weird state that we talked about a little bit earlier where, you know, in crypto, for example, you, your customers are free to invest in thousands of meme coins, right? but then you have, you know, companies like spacex, openai, anthropic, you know, a lot of our customers are big believers in technology, in artificial intelligence and things like electric vehicles. and i think the problem with artificial intelligence is a large part of

that innovation is actually in private markets. you know, openai anthropic, these companies that are making a lot of strides are still private. and so the returns and, you know, some of the private investors that are in these companies have been sitting on returns of 1000 x plus are not available to retail. so we think the juxtaposition of that doesn't make sense. you know, you can invest in meme coins freely, but openai and spacex and companies like anthropic are too risky. so i think we need to we need to fix that. >> what does that look like? is that a knowledge based test? you know, if it's not a net worth test, what would you suggest in terms of adjusting that? >> i think there's many solutions. i think that the platforms that offer access to these types of products to retail platforms such as robinhood, should have disclosure that actually communicates what level the different asset is at. so, you know, if you have very little information about it, and the

company, if it's a private company, doesn't make certain disclosures, it could be one level. and then some companies actually make disclosures at public company level while they're private. and that would be a different tier. but but i think my general my general principle is give consumers the information. retail should have access to most assets that institutions have access to and let people make their own decisions. >> we'll have to leave it here. but i do want to say you guys had this sort of you called it an nba postgame vibe for the earnings call. do you expect others to start to do that? you were kind of trying to be saquon with with the sports conference. it was like a little bit of a broadcast thing. what was going on. do you expect others to do that? >> well, we've gotten some feedback. you know i like watching the youtube analysis of our earnings in the past, because we get a lot of retail analysts that ask some good questions. and, you know, it was a little dry. and i think we took that feedback seriously. >> you guys spiced it up. it was it was fun. so hopefully we'll see if others others follow in

that direction. but it's great to see you. thank you for being here and walking us through that. >> thank you as always, guys. >> back over to you in the studio. >> yeah i mean high hopes going in and a 14% surge in the stock right now. thank you. kate rooney speaking to the robinhood ceo before we head to break. time for our bond report. let's show you how treasuries are faring this morning. maybe somewhat surprisingly there's a bid and yields are lower. and i think it's surprising given another hot inflation read which we got from wholesale inflation yesterday. it's the opposite reaction we saw yesterday from the hotter cpi number where bonds were being sold off. the ten year yield though still above that 4.5 kind of number which is a signal of the higher yields. we'll be right back. >> the bond report is brought to >> the bond report is brought to you by pimco, a it's a smart move to get a second opinion. you do it when you're looking for a contractor. you definitely do it with medical advice. so why not with your stock market investments?

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>> during a town hall meeting yesterday. according to reuters. dimond pushed back on. some employee complaints as. one group even launched an online petition for dimond to soften the policy. dimond said, quote, don't waste time on it. i don't care how many people sign that. blank petition, there is no chance that i will leave it up to managers. the abuse that took place is extraordinary. >> we've been talking. about financial services in general, pushing. >> for return to office, but. dimond seems to be doing a little bit more too. >> it was very early in it, first of all, and i think there's a there are many reasons for that. why the big banks in particular feel like it's necessary. i mean, it's a compliance heavy workplace. half the year is spent figuring out who's supposed to get credit and compensation for what they did. and so it's not as easy to just sort of do that when everyone's at home. plus they're big organizations and it acts as a bit of a culling process, probably. >> and the onboarding. >> for new employees especially. >> right. >> it's not just financial services now. i mean, you will not find a ceo, at least off the record, who who speaks to us,

who wants their employees working from home. and i do think there's a bit of a shift on this that comes from the white house. i mean, one of the president's first executive orders before he was even in office for a full day, was demanding that federal workers work five days a week from the office. i think it feeds into the whole buyouts, you know, if they don't want to, if they don't want to work in the office, then they should take the buyouts and not work. and then i found this 2024 report from the omb, which is showing that the department of education, as of 2024, half of the staff work remotely. about 55% of the staff work remotely. small business administration, 48.5% of the staff work from home. office of personnel management also, half of the staff are remote workers. so this is going to be. >> maybe that will help doge sell the 500 government owned buildings that they're supposedly looking to put on the market right away. if those people leave the gsa. yeah, i mean, obviously, you know, it's who has the power, labor or the employers. i mean, that's. >> we knew we. >> we knew that this pendulum

would swing, and we. >> knew that it was being folded into comp at one point. your ability to work from home. and now it's just completely gone the other way, no doubt about it. >> well, we're. watching an ipo this morning for a change. cybersecurity firm sailpoint set to make its market debut. we will speak with the ceo ahead of the first trade next hour. don't go anywhere. >> in the world of investing. a beast lurks between the numbers. >> some watch from the. safety of the sidelines, but others. >> saddle up and. >> ride that one ton rowdy ribeye for all he's got. >> if that's you.

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club members. >> it's much more. >> interactive with. jim on a daily basis. so i'm. >> able to. >> stay on top. >> of. >> things and actually. >> have gained so much knowledge. >> i watched. >> the. >> morning meeting. >> just. >> about every day. >> it really kicks off. >> the day. >> provides a good framework. on what he thinks is. >> going on for today. >> get invested. join the club today. go to cnbc.com. slash join jim. >> good thursday morning again welcome to squawk on the street. >> i'm. >> sara eisen with carl quintanilla and mike santoli live today from post nine of the new york stock exchange david has the morning off. stocks are hanging in there quite nicely despite another hot cpi report. another inflationary read that came in a little disappointing. on the upside, you've got strength in a lot of groups materials, consumer discretionary technology, financial staples, industrials, energy, utilities and communications services. they're all up right now. the only ones that are down are real estate and health care. the s&p 500 up

a quarter of a percent. adding to the weekly gains. the nasdaq is up now more than 1% for the week. treasuries also catching a bid despite that warmer cpi report. and we are seeing yields come down a little bit from their elevated levels yesterday, though, the ten year note yield is importantly still above that 4.5 level, which we did break higher yesterday on the stronger inflation number. >> it's a. >> very busy. >> day in washington dc. >> we've got. >> a house budget. markup a guy to white house appearance on tariffs. prime minister modi of india. and this robert f kennedy jr's final senate confirmation. vote to. >> be at health and. >> human services, set to begin at 1030 eastern time. >> we'll bring you the latest when. >> we get that later this hour. >> and we've got a lot of movers 30 minutes here into the trading session. here are three that we are watching cisco in the green beating estimates reporting revenue growth for the first time in four quarters. full year guidance also coming in above expectations ie a bigger part of that story. shares of applovin surging. the company, which helps developers make apps for

mobile devices but is really now just becoming an advertising company, beat on the top and bottom line revenue up more than 40% from a year ago. shares have now gained 1,000% over the past one year, and then deere shares are under pressure. earnings topped estimates but were down sharply from a year ago. deere, feeling the impact of farmers renting equipment due to weaker incomes and higher borrowing costs. guidance also pointing to more revenue declines. deere down 3.4%, but it had been an outperformer on the year. >> meantime, a developing. >> story we're. >> watching this hour. the president set to. >> announce reciprocal. >> tariffs on. countries that impose higher duties on us goods. let's get back to eamon javers with the latest. morning again eamon. yeah good morning to you carl. >> i'm learning a little bit more. >> now from white house officials on what to expect at the 1:00 event in which the president is going to announce reciprocal tariffs. one thing to watch for is i'm now told that there's going to be a time delay of some kind on these tariffs. they're not going to go into effect today. there will be a

date certain in. the future. unclear what that date will be. april 1st has been discussed as a possibility for the tariffs to go into effect. that is. still tbd. so don't count on that particular date. but one thing is for sure these tariffs are not going into effect today. this is going to be a presidential memorandum, not an executive order. so a little bit sort of lower on the totem pole of presidential authority here. the ustr is going to be tasked with identifying next steps in the reciprocal tariffs as part of this presidential memorandum that we're going to see today. we're going to expect to see a couple of new details in terms of exemptions in this announcement today. we're not really sure exactly what the exemptions are. i'm told there will. >> be. >> some slight exemptions to the tariffs. the president has been resistant to the idea of offering any industry group that asks for it an exemption to the tariffs, but he has put in some exemptions. i am told we'll wait and see what the details of that are. a couple of ceos have been

in the building over the past 24 hours, i'm told. not clear which ones have spoken to the president about tariffs, but the ceo of american airlines and the ceo of verizon, i'm told, have been on campus over the past 24 hours. so clearly a lot of folks are making their case about their industries to this white house, just in general, no ceo calls on the schedule for today and no indication, i'm told that there are any exemptions for any particular countries. but we'll wait and see. all of this, i'm told, is a moving target through this morning. they are still putting the final touches on this tariff announcement today, even as we speak right now. so we'll wait and see where everything lands and where the dust settles at 1 p.m. guys. >> eamon, do the countries get a heads up or are they waiting like we are for the announcement? >> the countries, the countries have been burning up the phone lines. i mean, i talked to kevin hassett, the national economic council director, yesterday. he said he's been on the phone yesterday morning with foreign leaders. he said the commerce secretary, howard lutnick, was

on the phone with foreign leaders. all of those negotiations have been going on country by country over the past 24 hours. so we will see whether any countries get an exemption, whether any of that lobbying paid off behind the scenes. >> all right, eamon, thank you very much. we wait till 1 p.m. to see what this all looks like. eamon javers by the way if you're looking for who's targeted here the trade deficit. you know we run a trade a trade deficit. we import $1 trillion worth of goods. we are buyers from the rest of the world which president trump has had a problem with. here are the biggest trade deficit partners or folks that trump would like to see them buy more from us. china. we know. obviously a biggie. mexico, vietnam, ireland, germany. that's why europe is in the crosshairs, of course. and then, you know, rounding out the top ten which couldn't fit in here is india is number ten, which prime minister modi is going to be at the white house today. they have tariffs. so they could be a target here. and also canada is number nine.

we did speak with the white house trade adviser peter navarro yesterday. we asked him about reciprocal tariffs. he said he couldn't announce anything on the show. but he did give us some hints. listen. >> if they won't. >> lower. >> their tariffs. >> to ours and their. >> and non-tariff barriers, we're going to. >> raise ours to. theirs or vice versa. >> it's the most. >> common sense thing in the world. >> the eu. >> particularly has a vat tax, a value added tax. and it's not well. understood that that acts. it's like a two. punch when. >> when they're. >> sending us stuff. >> it's it acts as an export. >> subsidy when we're sending. >> them our. >> stuff. >> it acts as a tariff. >> and then of course, you got the. problems with all the other countries around the world. so reciprocity, president trump has. >> embraced that. >> gives you a little bit of. >> their. >> motivation and the thinking behind why they feel justified in doing this, that they have trading restrictions and tariffs

like a vat tax in europe, for instance, that make it unfair. so we're now fighting back unclear whether what the upshot of that is going to be. are they going to buy more from us. is there going to be more manufacturing in the us? we challenged him on those points, mike, but it's hard to know what the end game is. one thing is for sure, if they do go with tariffs, they're trying to raise money for the deficit, right. they're trying to raise revenues. so that's part of the strategy too. >> yeah i mean it's one of the effects if it if in fact it gets paid. the numbers can't get that big in terms of revenue. i mean, obviously even if we applied it to all of our three plus trillion dollars in goods imported, and i guess the question is to i mean, do we have proper replacements? a lot of india imports of pharmaceuticals, for example, probably could do it here. that was that was the crux of your question. >> are we. >> going. >> to start making. >> shirts once again? it's kind of one of these. and if all it is, is we're going to charge the rest of the world for access to the us consumer, which is the single strongest force of demand in the world. fine. that's what we're doing. it just doesn't necessarily contribute directly to a restructuring of the us

manufacturing sector or something like that. that might be an ultimate goal. >> the other the question. >> and it was. >> interesting. >> the. >> way navarro. >> went. >> right to as a sign. >> of success. >> the. >> price action of shares. >> of steel. >> makers, which is what he went to yesterday, which. totally makes. >> sense because. >> nucor. >> for example, did. >> raise the price. >> of rebar this week. so the. >> discussion of. >> pricing impacts. >> on he also said protection of domestic producers in an industry where there's overcapacity globally. right. so it's not like people are going to have to create more plants. it's just we can protect our our ability to produce it. i mean, which which, you know, has some value. >> steelmakers are ecstatic about these tariffs. i mean, all of them have responded very positively, not just their share price, but in terms of their statements as well. look, so you have the trade deficit, you've also got the budget deficit. and we did get some new numbers on that. and we're expecting right. the house republicans, they did put out a plan. it's going to get marked up today. >> yes. and johnson. >> says he expects it to pass unanimously. it'll be interesting. >> so here's the setup. here's the deficit the budget deficit

as a percent of gdp. and where we are now is negative, what, 6.5% of gdp. why that's significant is because the only time it's been lower than that in recent history has been during those gray shaded lines of recession, covid the financial crisis. i mean, that that's when the deficit dips, because we have to spend a lot stimulus to get out of it. and that's why people are especially worried right now about just how much debt and deficit we're taking on, because we're in a strong economy. i mean, pretty much 3% growth economy, very strong labor market. we don't need to be spending quite as much, goes the thinking. and that's the that's the problem. i'll just end with just the peterson institute came out after the house republican plan. and, you know, not a fan in terms of the fiscal responsibility here. they think america is in in terrible shape. and the new administration and congress have many available policy options to improve our fiscal outlook, or at the very least, fully offset policies they wish to enact or extend.

the bottom line was that this this plan that they put out spent a lot more in terms of the tax cuts and the giveaways. then it. >> raised the accounting for the extension of the tax cuts is very, very punitive when it comes to trying to have, you know, offsets. i will say, though, non-interest spending, primary spending is right now about 20.1% of gdp. in 2019, it was 19% in terms of actual outlays. that's what we're looking at, kind of like one 1.5% of gdp toggle. it's the interest expense that's built up. interest costs. we can't get. >> 192 billion for the first quarter of the fiscal year out of 840 billion. so it's a sizable chunk to your point. absolutely. that's why the president wants lower interest rates. elon musk wants lower interest rates. everybody wants lower interest rates. >> yeah. >> we had it good. >> there for a while. >> meantime meta is coming off 18. straight days of gains hitting all time highs. going back to the 2012 ipo. >> it has been. >> a bright spot in the mag

seven trade. and that. group overall underperforming the broader stock market. >> s&p would. >> actually be higher this year if you took out. >> the mag. >> seven names. joining us to talk about that and the state of the. >> overall market. >> is jeremiah. >> buckley, janus henderson. equities portfolio manager. >> his top holdings include. >> meta, nvidia. >> and apple. jeremiah, good. >> to see you. >> thanks for joining us. >> yeah, thanks. >> for having me on. >> i think it was one desk last week that said it's really the mag one. >> and it. >> is meta. i wonder if you'd go that far. >> and if you think 18. >> in a row. >> has put it in. >> an overbought position. >> yes. >> obviously meta has had a good start to the year. it's amazing that they've had the winning streak that they've had. and certainly fundamentals have been strong. they had better than expected revenues. and so it's been deserved. and they've had very aggressive investment plans. and we're optimistic about that. and so yes the valuation has increased. it's towards the. >> upper end of. >> the mac seven names now. >> but we. think that. >> that. >> is appropriate given the

growth outlook. and so we're still positive on meta. >> you know. >> we also. >> see. >> amazon is up so far this year outperforming. >> the s&p modestly. >> they also had strong results. >> and fortunately. >> for them they had good growth in aws. that was in line with expectations. and so still. optimistic on most. >> of. >> the mag seven what do. >> you make of. >> what do you think the fallout has been. from the. deep sea news, the. >> gut check on training costs and then the subsequent. >> reiteration or actual positive. >> revisions on. >> capex guidance in the past, say, a couple of weeks. >> yeah. >> so we think we. >> paid more attention to the capex guidance and the capex plans. >> and we think. >> that the demand. for compute is going to continue to be very strong. we still are very positive on nvidia. we think earnings growth is going. >> to. >> be quite impressive again this year. we're certainly paying attention to the deep seek. i think it was an interesting development. we certainly need efficiency to continue to improve in ai.

>> for this to continue to. >> be a long term growth driver, but we don't think. >> at this point. >> in time that's impacting capex. >> plans. >> and we're still very positive on ai infrastructure. >> i mean, do you think these are all just secular ai stories, or does it matter which way bond yields go? and what happens with tariffs and macro for some of these stocks to work? >> to me it's the secular themes around ai that are driving these companies. if you look at they all have. >> extremely healthy balance. >> sheets with lots of cash. and so i think within the market there are less interest rate sensitive to the extent that the higher interest rates would materially impact the overall economic growth. >> then they were certainly see some impact. from small. >> businesses, etc. but but in general, i think it's really the returns on the. >> capital that. >> ai generates. >> over time and. >> their leadership. >> globally that will drive the stocks and. >> their outlooks. finally, i know you. >> can. >> address some. >> names in. >> the.

>> consumer and travel space. >> we've been. >> watching discretionary versus staples and whether. >> or not that ratio is. >> shifting and. what that would mean longer term for the market and the consumer. but you know, for. >> example, a. >> name like disney and. >> their reliance on parks and. >> experiences, where. >> do you think the rest of the. >> at least first half of the. >> year is going to lead us? >> yeah. so we're still positive on travel trends. i think you saw with. >> fourth quarter earnings. >> results, and then you saw mgm report this morning. >> with some. >> favorable commentary. we think. >> the consumer. >> continues to spend on travel. demand is quite strong. i think fortunately for the. >> consumer. >> despite the recent inflation. >> reports. >> some of the staples. or part of consumer. >> spending has moderated. and so they have more. >> of. their income available. >> for discretionary spending. and so we think that consumer discretionary spending will continue to. >> be positive. and travel continues. >> to be really well positioned to capture those gains. >> yeah. well tomorrow they'll get. >> retail sales. >> give us another indicator. >> of where they stand right now

relative to. >> their comfort. >> in. >> spending the money they have. >> jeremiah, thanks. good to see you, jeremiah. >> thanks for having me on. >> market continues to push higher here, by the way. every sector is now green except for utilities as we head to break. here's our roadmap for the rest of the hour. the ipo market heats up in 2025. cybersecurity company sailpoint making its debut today. pricing at the higher end of its range. we're going to talk to the company ceo ahead of that first trade. >> plus hour. elon musk's doge obligations a risk to tesla. we'll discuss that next. >> and indian prime minister modi meeting with. >> the. >> president today. what investors need to know as a big hour a squawk on the street continues after this. >> nothing stands still. not technology, not the market, and not franklin templeton. we've been a firm in motion for over 75 years, always innovating. today, we're a leader in public.

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i think we. >> do need to. >> delete entire. >> agencies as opposed to leave part. >> of them behind. >> because if you leave part. >> of. >> them behind. >> it's easy. >> it's kind of like. >> if leaving a weed, if you don't remove the roots of the weed, then it's easy for the weed to grow back. but if you remove the roots of the weed, it doesn't stop weeds from ever growing back. but it makes it harder. >> elon musk, speaking virtually overnight at a conference in dubai calling for entire government agencies to be

scrapped, deleted. his comments coming as a federal judge, allows the trump administration to carry out its federal worker buyout program. however, investors are questioning just how much of a distraction doge is for musk. with shares of tesla down five of the past six trading days and down 16% so far this year. joining us is tim higgins, who wrote the book and comments on musk has been studying him for a long time. i'm glad to talk to you, tim, because i feel like there's some misunderstanding or a lot of noise around. >> what the. >> motivations are for elon musk here when it comes to doge. can you clear it up from your from your perspective as to what's going on? >> yeah. >> he's been, i think for the last few months, pretty clear what his his perspective and what his, his ambitions are and that is to cut government spending. but i think more importantly, cut government regulations. he has for years talked about how there are too many regulations holding businesses back, in particular his companies at spacex and tesla. he has seen that up close and personal. when you look at

spacex in particular, he wants to get to mars. he wants to get out into outer space a lot. he's been running into hurdles that he says are unnecessary, such with the epa and other agencies. and now he has that opportunity to get in there and make things run quicker in his mind. >> the democrats say he's conflicted. he's going through his own contracts. he's violating our privacy. he's i mean, he has unrestricted power. do you buy any of that? >> well, it's. >> i. >> guess, not surprising given that they are on the other side of the aisle, but they do raise some legitimate concerns here. it is a potentially conflict of interest if he is in there in these government agencies that have potential to regulate him, that's the sort of thing you don't necessarily see or want to see in government. but it's a unique situation. when president trump has been asked about conflicts of interest with elon, he says elon, he says musk will kind of police himself and that he's watching over him. so yeah, definitely concerns from people

who study good government and have worries about overreach in business, in government. >> yeah. i mean, but the counterargument is that, you know, the government hires consultants all the time like a mckinsey, and they pay them a lot of money to come in, which is also something. and elon's not getting paid for this. right? >> right. and i think you're hearing his supporters say, hey, he's the world's richest man. he's not doing this for money. he's doing this to help the taxpayer. that's kind of the back and forth on these arguments. but what is really unique here is that he's not the first ceo, the first businessman in the world, or the history of the us who wanted to be involved in government in some way. and we've seen it in the past. but what he has done, at least in these early weeks, has shown an effectiveness to get himself deep within the trenches in a way that we haven't really seen before. and that gets at the kind of close relationship he has with the president, and that his willingness to be out front fighting these dragons.

>> is there any indication that his focus right now, which seems to be primarily on doge and washington, comes at the expense of tesla, or is there a is there leadership in place that it doesn't matter and they shouldn't skip a beat? >> i mean, the one thing that elon musk seems to not be working on right now is creating more hours in the day. and that's probably what he should be working on. right. but it goes back. i mean, the criticism that he's too distracted, that he's too overwhelmed, has gone back for many, many years at this point. tesla investors know what they're getting. but i will say that, you know, when he took over twitter in late 2022, this was a concern. the company tesla, the automaker was at kind of an inflection point. there was starting to be some signs about where the way the electric car market was going and where the tesla was positioned, and it would seem as if tesla is now in the in the at the point where it doesn't have the kind of new product that it needs to excite the market. right. there is promises of some cheaper vehicles later this year, but the big issue is that if you

look at its lineup, it's pretty old and that's always a tough place to be if you are a car maker. new sheet metal sells old sheet metal sticks around, and that is an issue if you're a tesla investor. that said, tesla investors are really betting that sheet metal isn't the future. it's software that these vehicles are going to be autonomous taxis, that driverless cars are on the precipice of happening. and that is where they're putting their money with musk. and they're hoping that his relationship with trump will help kind of usher in that new era. >> the other big story. >> it's actually in. >> the. >> journal this morning, tim. >> is. >> about mers. >> of germany. >> who's the frontrunner in their upcoming. >> elections, who says. >> that musk will face consequences, in his words, for meddling in. >> german politics. >> and, of course, germany. the home of their one huge european factory. what kind of. >> price might. >> he pay for that? >> well, you could see the price being consumers being turned off by the brand. that's been a concern, especially in europe,

where sales have struggled. we've seen here in the us, democrats being turned off by the brand at certain points, when musk has been especially vocal on some of his more contentious views, you also have just the idea that governments around the world are wary of some of the way he's using his bully pulpit of x and getting involved in external politics, whether it's in the uk, eu, germany, these are things that make people nervous. and definitely, you know, create some unhappy will if you will. >> yeah, we are seeing that play out by the way tesla having a nice comeback day 5.5% higher. tim thank you for your insight. tim higgins from the wall street journal. also, the book is power play tesla, elon musk and the bet of the century. >> as we go to break. check out some of the biggest gainers. >> on the. >> 100 points back to 6081 mgm up there. we mentioned ge healthcare casinos having a very nice day across the board. also

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>> s&p 500 not too far off from the session highs. we've been moving higher all morning long. no fear of reciprocal tariffs. no fear of hotter inflation numbers. that's what the market is suggesting. we did get that news broken by our own eamon javers at the top of the hour that while we are expecting an announcement at 1 p.m. on the reciprocal tariffs, eamon is reporting that they will be a delayed start. they will start may start. he reports on april 1st so that they're not immediate. maybe leaving some window or room for negotiation. >> and they're not an actual executive. >> order and they're not an executive order either. it's a little bit less sort of stringent maybe on that front, similar to what we got, maybe from the 25% announcement on mexico and canada, which then were delayed for a month, and there are concessions being had and being made. all that feeds into the well, this is just a negotiating strategy to get something that he's after, whether it's on immigration, whether it's on trade, whatever it is, the market is less worried about it than, say,

other days where we are anticipating tariffs or have been before. they're trying to get used to what this is all going to look like. >> yeah. >> it's easy to declare. >> victory if you never say what. >> you're after. in the. >> first place. >> preserve leverage. >> yeah. >> meantime. >> shares of nvidia and hpe are. >> worth watching. >> nvidia is. popping on news. >> that hpe has shipped its first. grace blackwell system. the company says the system. >> is designed to help. service providers and large. enterprises quickly deploy. >> very large. >> complex ai clusters. >> with advanced. >> direct liquid cooling solutions. >> sarah, we've talked with. >> antonio about that before. >> and what kind of technology that involves. >> absolutely. >> i mean, he's also busy there trying to fight this fight, this acquisition, right, that they're trying to make as well. they're trying to fight the federal authorities. yeah. they're trying to buy juniper. and so that's going to be another key test. >> for sure. turning to another part of the mag seven, alibaba chairman joe tsai speaking overnight at a summit in dubai, confirming reports that alibaba is partnering with apple to roll out ai for iphones sold in

china. those stocks both jumped on the report this week. sai said alibaba would offer apple a local partner to help navigate the regulatory environment and localize its ai. you see apple up 4.5% week to date. it's up just about 40 basis points or so today and has had a decent bounce. so it does remain about 8.5% below its high. so again, a lot of this churning around the mac seven. time now for a news update. let's get to contessa brewer. contessa good morning. >> hey there mike. german authorities say nearly 30 people were hurt when a car plowed into a. >> crowd in. >> munich the daye a major security conference. vice president jd vance is among the major world leaders attending that conference. police suspect this was intentional. they say they're investigating for a motive, and they suspect is an asylum. >> seeker from afghanistan. >> and was needed. for previous, unrelated drug and theft incidents. the cease fire between israel and hamas appears intact. for now. the two sides

agreed to resolve a dispute over a lack of aid entering gaza. that could have derailed that fragile arrangement. hamas says it will release hostages as planned this weekend, after getting guarantees that caravans and medical equipment will be allowed into the enclave. today. former world wrestling entertainment executive. >> linda mcmahon. >> is on capitol hill today. she's appearing before a senate. >> committee for her. >> confirmation hearing to become the next education secretary. president trump has suggested he's going to dismantle that department that she's seeking to lead. interesting dichotomy there. will it end or will it continue? carl, we'll be watching. >> all right. >> thank you. still to come this morning. our next guest company is going public today. just priced at the top end of the range. last night we're going to talk to. the ceo of cybersecurity company sailpoint cybersecurity company sailpoint in a -what've you got there, larry? -time machine. you gonna go back and see how the pyramids were built or something? nope. ellen and i want to go on vacation, so i'm going to go back to last week

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street. sailpoint the latest company coming through the ipo pipeline. cybersecurity company first went public in 2017 and then was taken private by thoma bravo for $6.9 billion in 2022. salt point pricing at the higher end of its trading range of its anticipated range, valuing the company at over $12 billion. we wait for the stock to open from its $23 issue price. joining us now, sailpoint ceo mark mcclain. mark, welcome and congratulations. >> thank you very much. it's an honor to be on your show today. thank you. >> so talk about a little bit of now versus then in terms of where the company finds itself. your particular lane, i guess in cybersecurity and what's changed since 2022, which was when you were sold into private equity pre chatgpt. >> yeah. >> good question. you know, we're in a part of the security. >> market called identity. >> security, which is really ensuring. >> that all the. >> identities and. >> enterprise cares about mostly. >> people but. >> increasingly non people, things like machine.

>> identities they're called and even agents. >> the world of ai agents. >> is. >> rapidly evolving. >> it's making. >> sure all that. >> data that those enterprises have is secure to its. >> identity lenses. and to your point about. >> what's changed. when we were in the market before. >> it was. >> still mostly. >> about a people. level of control. could your employees or contractors and. others that needed to access. your systems, you know, could you ensure that was safe and accurate and you hadn't been compromised? right. >> because the. >> attack vector. >> from the bad actors has shifted to an identity based compromise. >> so that movement toward. machine and i'm just wondering in terms of it seems like you're dealing with kind of credentialing and making sure that these unique identities are protected from a company, but it would seem like those things, you know, if they're non-human can proliferate almost indefinitely. >> well, and there's kind of two parts of this identity story. i liken the metaphor to a building. you know, here in new york when we were visiting

investors, we would check into a building, give them our license, and then be allowed into the building. that's called an authentication process. like we go at tsa at the airport. but then our software is focused on, say, when you get into the building or into the application environment. in a technology sense, where can you go? what can you do? can you access all the data, see the data, change the data? well, doing that across the thousands of applications and sometimes hundreds of thousands or millions of identities that an enterprise cares about is very complex. and companies are looking to sailpoint to help them navigate that journey towards securing all that data, as we like to say, through the lens of identity, it's ensuring the right identities have access to the right data. >> who are your primary rivals? doing what you do because it does feel increasingly competitive, this whole cybersecurity market? >> yeah, there are a number of players in and around the industry, but frankly, very few of them have actually been as focused on this part of the market as i mentioned. there's this access market companies that have been focused on what's called single sign on or multi-factor authentication. are you really who you think who we

think you are? can you log into everything? or there's some vendors focused on privileged access. but sailpoint has been uniquely focused on this identity security space. and frankly, there aren't a lot of significant challengers to us at the high end of that enterprise market today. so that's part of the positioning that i think investors were excited about when they heard this story. >> the other thing is, is it will remain a controlled company, right. thoma bravo will still own, what, 88% of the company after the. is that going to be a problem for investors that you're talking to? >> we hope not. we have an unusual story. we were actually owned by thoma bravo. we've been a venture backed company owned by thoma bravo, went public in 2017 and then were public for almost five years, went private with thoma bravo. again, a fairly unusual story actually. and so the investor community has seen thoma bravo handle that and be very thoughtful about how to unload some of that equity into the market that that time they actually completely exited. i think the sense is they'll come down from a control position, but probably be a long term owner. but there's a great deal of equity to be sold into

the markets in the coming years. and investors are, i think, pretty excited about that. >> mark, you're right. you're in rarefied air in terms of the number of people who have taken the company public more than once. i do wonder, though, we spent a lot of time talking about private markets and how it's led to, some argue, less urgency to be public at all. why you felt this was a good move, and how you would characterize the overall window right now? >> yeah, it's a great question. we're very privileged to be one of the first tech ipos, obviously in 2025 to open on nasdaq. and we're hopeful it's going to go well, obviously. and i think if you look at that, there is a lot of companies who i think are interested in getting back into the public market setting. i think there's a lot of things that that does. it gives you some credibility. you you're held accountable to those public investors to talk about where you are in the market and your progress. and i think we're very confident that we can continue to deliver very good results. and it also signals some of the competitive landscape where you are and how you're doing. so i think we're very open to it. we were we've

kind of been focused as a business, i like to say always on, you know, doing what we need to do to build a great company. when we first went public, i kind of was developed a little saying. every second you spend looking at the stock price, you're not helping the stock price, right. we told our team, stay, stay focused on building a great business. the stock price will take care of itself. and that's been our experience. it's been a been a very nice series of growth in the last two and a half years while private, and we're pretty excited about our prospects in front of us. >> what have you found to be kind of investors, key themes in terms of what they're asking you about, what they're looking to try to capitalize on in terms of the overall industry trends, and really, what are you seeing in terms of the selling market right now for your your services? >> well, for sure, what investors like the story today is one where you can balance ideally scale and growth with profitability. and we are a great story on that dimension. we released some of our fiscal q3 numbers into our s-1. and you know, we're growing at over 30% overall, over 40% in our saas product line, which is the bulk of our revenue. now, we were doing that at the scale of over

$800 million of annual recurring revenue. and we were non-gaap profitable at about 15%. and that combo of growth and profit is very in demand. but then when you get to ready to reenter the public markets, what they want to know is how long can that sustain what they all call durable growth. and i think they see the secular tailwinds in our market, this this rush to machine and agent i that the number of enterprises around the world that don't feel like they fully secured their environment through the lens of identity. and they think sailpoint is fairly uniquely positioned to capitalize on that in the coming years. i think that's what the investors were really interested in our story. >> but but so it's what about gaap profitable and how long does that take and how much of the business is driven by subscription, which i would think would be much more profitable. >> great question. you know, as a software business, we were once a software. what's called perpetual license had been shifting to saas, but we ceased selling those, what's called perpetual perpetual licenses and move to what's called term licenses. net net, we're over

90% subscription revenue. now. that's a profile investors really like. and i'm not the best technical person here. but what i can tell you is it's pretty traditional in the in the software market to stay focused on non-gaap profitability because of a lot of the stock based compensation issues. they can really put a damper on on gaap based profitability. and so in in our marketplace, i think non-gaap profits are generally what are considered kind of the bellwether of good potential future performance. >> yeah, at least initially. certainly we're hearing the current indication for the opening of the shares somewhere around 26 relative to the $23 offer price. so we'll continue to track that. mark, great to talk to you. thank you very much. >> thank you everyone for the time. really appreciate it. >> all right. >> we continue to push higher here on the s&p 500. now up 6/10 of a percent. but here's a look at some of the biggest losers right now on the s&p. you've got the airlines in there down 4% or so zoetis the animal health care company also getting hit pretty hard. we'll be right back.

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name of our meds. that's it. savings on my asthma medication. all right. round two, baby. round two. oh, yeah. savings on my husband's blood pressure refills and savings on my daughter's allergy pills. >> prescription savings for the whole family. >> have a good one. >> another good reason to check goodrx. >> keeping a close eye on capitol hill this hour. robert f kennedy jr. s final senate confirmation vote to be at health and human services to be secretary getting underway. we'll bring you headlines as they cross. we did see some interesting like intraday movement in names like moderna during his hearings. we'll see if we get any more once we get a vote. >> yeah. you wonder if a lot of that again is just kind of

spilled through the market in anticipation. and you know we'll just know what we know once the once somebody is in the office. >> speaking of movers, check out shares of molson coors rallying on the back of the latest earnings and outlook. the beer company beating expectations. higher prices helping to offset continued volume declines. molson's full year outlook indicating further growth and above street forecasts. molson is part of the consumer staples group, which is the best performing sector so far this month and one of the best so far this year. i guess it pays to be a hated group, right? the alcohol makers, the consumer staples, they have not been loved for a long time. >> and that is true. >> a bit of a comeback. >> although walmart and costco are carrying the staples. >> true. and they've been. >> they dominate the market cap weighted sector and they're up like 15% year to date. >> yeah. but we've had some nice earnings surprise. >> some of them have actually had some relief rallies. you're right. >> but on the. well on the low expectations point. i mean cause what had sales down 2% and that was better than expected. it's still not necessarily growing. it's also been a big beneficiary

of the market share shift over the last, i don't know, a year or two away from bud light into coors light, molson coors. and they've they've been able to retain some of that. >> yeah. still still wrestling with the whole cannabis and glp one question as well. when we come back on money movers later on this morning, former nsc director and the first trump administration and former goldman sachs president gary cohn is going to be with us, breaking down the latest out of washington. that's at 11 a.m. still ahead this hour, indian prime minister modi meeting with the president today. what investors need to know after the break. >> and. >> real time exchange sector sword is sponsored by sector spider etfs.

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consignors get $100 extra. terms apply. >> indian prime minister narendra modi meeting with president trump today. modi here with more on what's at stake with this get together. hi, seema. >> hey, mike. well, if these reciprocal tariffs are meant to scare other nations, it seems to be working. i'm told by sources that the indian leader will

strike a more conciliatory tone when he meets president trump at the white house today, ready to cut indian tariffs on agriculture medical devices and tackle that growing u.s. india trade deficit, the 10th largest in the world, by purchasing more defense equipment like missiles from stryker, natural gas from cheniere energy. russia currently accounts for about a third of indian imports. now, trump has touted the importance of india in the past as a strategic ally in asia. his warm relationship with the populist leader. but he's also criticized india's high tariffs, which average at about 15% on us imports. he could also face pushback on immigration. the indians make up about a majority of h-1b visas issued by big tech. republican hardliners have criticized the program, while elon musk has shown support. another sensitive issue is indian businessman gautam adani, a key supporter of modi, who has been indicted by the us justice department on fraud allegations. bringing this all back to markets, guys, india has gone from being one of the best performing markets last year to

among the worst performing in 2025. no doubt on these trade tensions. guys will be watching this meeting very closely. >> i was i was looking into some of those statistics. and you just mentioned that russia is still a big trading partner. why do they buy most of their oil from russia if india has become such an important ally geopolitically with the us? why not buy more from here? >> you know, india's argument, sara, has always been that the oil and the energy they're getting from russia is a lot cheaper than other importers, and therefore they're going to continue to buy from from russia. but i think the question is, depending on how these discussions go with trump at the white house, how much more india is willing to buy from the us. it's already, i think, one of the fifth biggest buyers of liquefied natural gas from the us. names like cheniere energy, among others. so that energy relationship will certainly play a big role here, as is defense. i mean, not only does india buy oil from russia, but it also buys a lot of defense equipment as it does from the us. so there's an opportunity here to

get this country to buy more here to level the deficit, while at the same time reinforcing the importance of the national security presence of these two countries and seeing india as a way to counterbalance china's role in asia. >> although i was going to ask you, we keep talking about a more hawkish trade stance in the us and the lanes that that opens for china. how would we characterize right now the relationship, at least in trading between china and india? >> not great. i know the two leaders of india and china recently met to try to strike a more positive backdrop for the relationship relations to get better, but these two countries, no doubt, are competitors. chinese nationals right now are not allowed into the country. they ban tiktok. so india views china as a strategic competitor, and modi will likely reinforce this point because he knows that's something that trump will likely want to hear in these meetings today. carl. >> seema. so if the focus seems like on the trade front to be about what else india might be able to buy from the us, it would seem as if the subject of

the actual 15% tariffs or so india imposes is not much in play. >> i think it could certainly become in play. i mean, we heard, you know, sarah, in your interview with peter navarro yesterday, what kevin hassett told the channel as well over the last week that india needs to address to address its high tariffs, specifically on agriculture, luxury cars, bringing down the tariffs on harley davidson motorbikes, which india seems to be more receptive to. which, by the way, is very different than how they treated tariffs under the biden administration, which tells you that with trump in the white house, they're very much willing to have negotiations versus up for retaliation. >> seema, we'll keep an eye on the meeting with your help today. it's an important one. seema mody joining us from washington, dc. thanks. meantime, jeff bezos space venture blue origin, cutting 10% of its workforce. in an email obtained by cnbc's morgan brennan that was sent out just a few minutes ago. the layoffs will impact positions in engineering, r&d and program

project management. the ceo saying, quote, over the last few months as a leadership team, we've worked together to define our 2025 annual operating plan and growth strategy. our primary focus in 2025 and beyond is to scale our manufacturing output and launch cadence with speed, decisiveness and efficiency for our customers. we grew and hired incredibly fast in the last few years, and with that growth came more bureaucracy and less focus than we needed. also became clear that the makeup of our organization was changed to ensure our roles are best aligned with executing these priorities. it comes a month after the company successful new glenn rocket launch, and it. i guess we can add it to the list that we mentioned earlier between chevron, salesforce, meta, estee lauder, kohl's and some others that are trying to keep corporates as nimble as possible. >> efficiency is the word. >> yeah, exactly. it looks like. i mean obviously because. right. because they can afford to keep as many people as, as they want. about 14,000 total employees. looks like so 1400 of that. and

it seems like that's roughly equivalent employment to space x, in which case you would think maybe space x has a bigger commercial business. and, you know, obviously a little bit of a mismatch there perhaps based on. >> it is interesting how these things, you know, go from washington to business, like the like bureaucracy is very bad right now. the wave of efficiency is in, you know, the work from home stuff like there's a lot of symmetry here between corporate america and what's happening in the white house. >> it's a far cry from when they couldn't get enough workers at all. it was just a scrambling for workers. we're off the session highs. but s&p still not far away from 6100 which we haven't crossed above since friday. money movers begins after this. >> the number of public companies is shrinking while the number of private companies is increasing. at franklin templeton, we're expanding access to the growing opportunity in private markets, offering the potential for greater diversification and enhanced returns. through our world class specialist investment managers, we are empowering advisors with

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look at that opportunity. and that is how you win your market with similar either. >> good thursday morning. welcome to money movers i'm sara eisen with carl quintanilla live from post nine of the new york stock exchange today, former nsc director in the first trump administration, former goldman sachs president gary cohn on the president's reciprocal tariff plan. this week's inflation readings, of course, the latest on doge and more. >> then a, quote, global rebalance. morgan stanley wealth management's chief economic strategist, ellen zentner, on the president's efforts to shift the geopolitical landscape and the sweeping implications for the economy