congratulations. >> thank you. >> thank you. >> so much. >> thank you. >> you're very welcome. >> alex moffat. >> garrett morris, jay pharoah, chloe fineman. >> did i miss someone? >> taran killam. >> i guess. >> and taryn. >> and taryn. last but not least. >> we're almost done, i think. oh. >> no. >> we're not coming right back. >> make sure. >> you. >> join us on tuesday. >> you won't be here. >> fun way to spend a friday morning, though. it was great. >> make sure you join us. >> on tuesday. >> squawk on the street. coming up. squawk on the street. >> squawk! i got no beef. >> with squawk. >> they're nuts. >> love it. >> watch. >> a good friday morning. welcome to squawk on the street. >> i'm carl. >> quintanilla with leslie picker. mike santoli a post nine of the new york stock exchange. kramer in favor of the morning off pre-market. pretty steady s&p on track for a positive week but yields a bit lower here as we get the worst drop in monthly retail sales in nearly two years. ten years back below four

and a half ahead of that long holiday weekend. our bet this morning goes with the trade. trade investors continuing to digest delayed tariff plans from the president. as we close out this third week of the new administration. >> plus shares of airbnb and roku surging after earnings beats moderna, palo alto and amat heading in the opposite direction. we'll break down all the movers of the morning, including gamestop, which is considering investing in bitcoin and other cryptocurrencies. shares moving higher ahead of the open. >> let's get right to the markets. s&p is coming off the best performance in about a month. mike. we had a couple of losing weeks. we're going to try to repair some of that. although we had a discussion yesterday about seasonals and what the rest of february is going to look like. yeah. so it turns a little bit less favorable. >> i think the way. >> i would characterize that. >> is with. >> such a strong start to the year. by the way, the s&p is. >> up just about 4%. >> year to date already. we're six weeks into. >> it or so. and so. >> it's got a pretty. >> good head start.

>> is if you. >> do see some. >> choppiness, if. >> you have. >> some give back. >> in the latter. >> part of february. >> or thereafter, you shouldn't consider it abnormal. >> in other words. >> just take. >> it. >> in stride. >> because we're kind. >> of. >> due for. something like. >> that doesn't mean it's going. >> to come. >> do you think the action yesterday was interesting in the sense of the market constantly reveals its preference when it comes to these policy choices, and it says the. >> better time. >> for. >> tariffs is later if we have to have. >> them and lower if. >> they're going to happen. >> never preferably. >> i think is probably. >> where they would. >> net out, but it just seemed as if this deferral. >> of this idea. >> of reciprocal tariffs was enough to get a. >> lift in the overall indexes. >> look, earnings have been good enough. >> they've moved the chains in. >> terms of. >> annual earnings growth. >> i think that. >> the general. >> equilibrium of. >> growth and. >> inflation is still acceptable. >> bad retail. >> sales today. i still think the market could be sensitive to growth scare inputs. >> in. >> the latter part. of this quarter. >> but all. that put together. >> and you. revisit the old. >> highs, that's basically. >> what. >> we. >> did on the s&p and. >> doing it the hard way. >> like only 60%.

>> of. stocks are. really in. >> an. uptrend right now. >> and yeah. >> the broader. >> market's doing better than the mega caps. over a. >> multi-month period. >> but it doesn't mean that everything is working. >> yeah. and to your point, the lack of clarity is seen as a positive for stocks. >> at least. >> in the short term. my question to you, mike, is whether or not, because it seems. >> like. >> the broader read is essentially you've got 200 countries that you're going to be talking about dealing. >> with, with. >> reciprocal tariffs, which each have. >> their own. tariff schedule. they each have their own. >> regulations, they each have. >> their own. tax implications. >> that you have to look at. so this is a humongous project. >> and then the other. >> idea is. that perhaps. >> he's leaving. >> the door open for further negotiations, as we saw. >> with colombia. >> as we. saw with canada. >> and mexico. >> so if you get to. april 1st and none of that has really happened, and they're able to kind of come up with these. >> reciprocal tariffs, is that a net negative. >> for these markets. >> or i. think it's a net negative. >> if they come out. >> and say we're doing it all, i don't think the market. feels it's worthwhile to try and have a precise.

>> kind of probability. >> assigned to that. >> until we. >> get a. >> little. bit more about. >> the process. >> i do think, you. >> know, goldman today is out there saying, look, this does look a. >> little. >> bit more like, let's try. >> to get better terms. >> where we can with our trading partners. >> it's very messy. >> i'm sure. that that was. >> communicated to. >> everybody involved. >> that if you're going to start. considering the value added taxes in europe. >> as tariffs. >> and they're talking about other. >> non-tariff measures. >> like currency policies and things like that. >> it just. >> becomes kind. >> of. a look, we're going to try to drive a hard bargain across. >> the. >> board. >> but. >> then. >> you don't. >> know if then at. >> some point. >> president loses patience and says, let's just do it first. >> and. >> negotiate after. >> again, i. >> can't. >> emphasize enough. >> how much the typical allocator of capital, whether it's. >> corporate or if you're. >> a professional investor, wishes not to have to worry about. oh yeah. >> so it's. >> not i mean, we talk about. tariffs because. >> we have to because the. >> president it's a. >> campaign promise. >> he's going to do it. >> he's going to. deliver on that. >> he's been fixated. >> on it.

>> for a very long time. but the market would. >> prefer that we just. >> be able to set that. >> aside and say. >> let's deregulate this economy. >> let's become more efficient. >> on. >> the. >> fiscal side. >> you know. >> maybe we. >> can. >> extend the tax cuts. we'll see. >> what that. >> looks like later. >> this year. >> and then we can just deal with what we have, which is a pretty good. corporate sector and really strong credit markets. >> and see where that gets. yeah. >> this is sort of b of a's point this morning. hartnett says that trump. >> is, in his words. >> going to have to go small. not big on tariffs and immigration in the coming months in order to avoid fanning a second wave. we don't have the chart, i guess, but he looks at the. the recent jump in monthly cpi. if you extrapolate that out, you would be back to 4% annual in about six months. >> yeah, i think. >> that's that is true. >> if you. >> extrapolate that out, if you don't get. >> any of the other lag effects. >> helping you out on disinflation. >> and by the way. >> also if they really. >> think that clicking to 4% cpi. >> on an. >> annualized basis. >> once and then not have it. >> annualized from. >> there is a deal breaker for tariffs. >> i continue to. always feel like the market. >> can. give a little. more

latitude. >> to some upside. >> on. >> the inflation side. >> if. >> the fed is. not going to come. >> in and just nuke. >> the economy in response. >> i think you really are more sensitive. >> to wear and tear on the cycle. i think if jobs weaken up, if this retail sales number. >> looks like it's the start. >> of consumer. >> fatigue, i'm not saying it is. that's the bigger risk to me because you have implied earnings expectations. >> priced into. >> this market. >> that are pretty aggressive. >> you know. >> citi is out saying today. >> projected five year. >> earnings growth. >> implied in. >> today's valuations is. >> like. >> 12% which is. >> like almost. >> it's rarely. >> been met on. >> a five year basis. >> yeah. which says in that city note from croner. >> that marked implied growth expectations. >> near 50 year highs means there is no room for. error from. >> policy on many. >> fronts. >> in rates. in productivity, in demand. and so, you know, when you have a market that is priced for. >> perfection. >> you've got all this uncertainty. >> that. >> people are starting to look through. you know, the broader implications of that. >> and that's why. >> the retail sales number is important. sporting goods. this is on a month down 4.6. furniture down one seven. used

cars and parts down two eight. couple that with i know it's sentiment but the nfib capex intentions that we got one of the biggest drops ever. you know even if it's not damaging to activity, if it's the cessation of planning about activity, that's that's also not good. i think. yes. and i do think you're going to see. >> a lot of. >> commentary in response to this to sort of say, let's not make. >> any grand. >> judgments off of january. it was a. wild month with the fires and the bad weather and a hangover. so let's just make sure we see if this is a new trend or if not. but yeah, i do agree. it's a pretty delicate balance there to have this stuff stay on course. you know, given the fact. >> that it looks like it. >> was a. >> little bit. >> of. a storm, by the way. like how long would it have taken. for people to be talking stagflation? you know, last year, if it was like cpi to the upside, retail sales down 0.9, we're in trouble. it's just not what we're used to. this kind of. >> give and take. >> in the numbers. >> right. >> good perspective.

>> as far. >> as tariffs go. let's continue that conversation with eamon javers this morning at the white house with the latest. as eamon i'm sure you also saw the market kind of took some solace in the delayed implementation of some of these. yeah carl that's right. that came. after we were the first to report that it wasn't. >> going to be. >> a tariff implementation yesterday. it was going. >> to be this long lead time. >> what president trump signed yesterday is a presidential. memorandum authorizing the government to conduct a study into reciprocal tariffs and issue a report to him by april 1st. and as you guys have been discussing. as you guys have been discussing. that's when we could see new tariffs hit the tape. >> and in the. >> oval office yesterday. >> he took questions from. >> a. >> number. >> of reporters and a wide range of. topics for nearly an hour. i asked him about the role that elon musk is playing in this administration. when musk meets with foreign leaders like. narendra modi. >> as he. >> did. >> yesterday, i. >> asked, is he representing tesla or. is he representing the. >> us government. >> in that meeting? here's what the president said. >> they met and i assume he wants to do business in india.

but india is a very hard place to do business in because of the tariffs. they they have the highest tariffs just about in the world. and it's a hard place to do business. so i would imagine he met possibly because you know, he's running a company. >> president there. say that elon musk met with him as the ceo of a company, not as a representative of the us government. that's an issue in terms of elon musk's role in this administration. who does he represent here? the president was also asked about tiktok negotiations and the potential deal potential for a deal with china. here's how he responded on that. >> we have a lot of people interested in tiktok, and i hope to be able to make a deal. i think it would be good. you know, people have learned it's very popular and we'll have to probably get approval from china to do it. but we have a lot of people that are interested and a lot of people, i think china will be interesting because it's to their benefit to. >> so the. >> president expressing some

confidence there that xi jinping. will ultimately sell. tiktok if. >> the president. >> can line. up some. >> buyers here domestically. >> he also said he'd like to have face to face meetings with. >> xi jinping and with vladimir putin. >> he told. >> me it's not important to him where that happens in the us or overseas. the important thing to. him is direct. >> personal contact with. >> those leaders. so more to come. >> guys, back over to you. the other thing people were taking note of, you know, back in october, the president. >> was posting. >> on truth social on day one. i'll slash prices so fast it'll make their head spin. of course, yesterday he did acknowledge that you might see some price increases in the short term. yeah. and that's one thing to watch for as you impose tariffs is what is that going to do for prices across the board. that may be, as. >> you guys were discussing, one reason. >> why they're going a little slowly. one thing i'm told is cooking behind the scenes. here is an effort on avian flu. they feel like if they can do something. on that front, they might be able to move the needle on egg prices. >> so we'll. >> watch for an announcement on that. the president's got some executive orders. he's going to sign today later on this

afternoon. and we'll see what what news that brings as well. we don't know what those are just yet. >> eamon, you brought up an interesting element to all of this. >> which is the conflict of. >> interest issues that some critics have brought up as it pertains to elon musk and some of these meetings. how would you characterize some of the conversations about this in washington behind the scenes and how he kind of fits into. both roles in these types of meetings. >> with. >> global leaders? >> well, it's totally unprecedented, right? i mean, elon musk bestrides the world in a way that few titans of. >> industry ever have. and with the role at doge. he's now overseeing a vast federal bureaucracy that. >> in many ways, his companies. >> benefit from. >> and he's having. >> face to face meetings. >> with world. leaders in the way. >> that. >> a. >> head of state would. >> i mean. >> he had a sit. >> down with narendra. >> modi across. >> the street. >> here at blair house yesterday. >> just the two. >> of them to talk. you know, whether that was about tesla, whether that was about spacex,

whether that was about starlink, whether that was about the us government. we don't have a. >> full readout on that conversation. >> but elon musk is a fascinating character because he, in many ways has his own foreign policy and his own domestic policy. >> and. >> several of the biggest and most important companies in the world, and certainly. >> in the country. >> so this is a figure that, unlike. >> we have ever seen. >> in washington, or. >> maybe. >> you know, not. >> to stretch too much. but maybe in american history. finally, eamon, two questions. one, is that longer term prospect of cutting the military budget in half with the cooperation of the russians and the chinese, something the president mentioned. and we saw defense stocks react pretty violently midday yesterday. that question. and then this notion of they say. >> they argue tariffs. >> are not a tax, but a vat is a tax like our sales. >> i mean. sort of the, the measures of various framing when it comes to those kinds of charges. yeah. >> i mean, i think. >> on the vat tax, i mean, what

that indicates. >> is that the president is willing. >> to use tariffs. in response. >> to. things much beyond. >> other countries tariffs. right. so if there's. >> what he. >> sees as currency manipulation. >> he could use tariffs. if he feels a vat. tax is unfair or tax. >> regime is unfair, he could use tariffs. so it's. >> not just. >> tariffs. against tariffs. it's tariffs. against every other economic tool that countries have. and then on the defense. >> stocks, i asked. >> the president. >> in. the oval. >> office yesterday if doge. >> goes into the pentagon. would he be willing to. cut spending there. >> that they find that he. >> deems wasteful? he said, yeah, he would be. i think that's a different thing, though, than. this idea of. cutting defense spending in half, which he was discussing in a broad sort of theoretical conversation about a grand deal between the united states, china and russia to denuclearize. >> and cut all of their defense budgets in half. >> you know, he was discussing it in that context. that is the longest of long shots to get a deal like that. he'd obviously like to do it if he can, but there's no guarantees that would ever happen. >> all right. >> what what. >> are we gaming?

>> a busy one for you and all of us. as we watch the policymaking in dc. we'll talk soon. eamon javers outside the white house, some breaking economic data coming up after a break. a lot of movers to get to coin, roku, moderna, airbnb, draftkings, gme, palo alto in a moment. >> 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, join us on that's you, join us on tastytrade. named best -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 and buy a winning lottery ticket. -can i come? -only room for one. how am i getting home? sittin' on my lap like last time, ronald.

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rick santelli here live at ccm hq with another batch of breaking news on this friday. our january reads on industrial production capacity utilization. we're looking for an up 3/10 on production comes in stronger than expected up half of 1%. up half 1%. that's the third positive read in a row. and it follows a slightly revised positive read from 9/10 up to 1% on the utilization side. 77.8. that is a nice plus from the rear view mirror. 77.5. that would be the best read since

august of 24. we see that yields are dropping and currently at 4.254 and a quarter. very psychological point for a two year. we're down a half a dozen basis points on the day. we're down four on the week on a ten year hovering under 4.5% down at 4.46. it's down seven on the day, down four on the week. we want to watch those weekly closes. maybe not a lot has been broken. and of course yesterday's post ppi. we saw a couple of big research companies think that the january 28th release of the fed's favorite inflation gauges, pce, are coming a bit lighter. that explained the big drop in rates yesterday. that seems to be continuing. squawk on the street continuing. squawk on the street will ♪♪ you'll get better when you're not blamed for a condition you can't control. ♪♪ you'll get better when your pain isn't minimized, dismissed, forgotten.

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today we are a leader in public and private markets, digital assets and custom. tax management, empowering advisors with solutions to build the portfolios of the future. today. i had the worst dream last night. you were in a car crash and the kids and i were on our own. that's awful, hon. my brother was saying he got life insurance from ethos. and he got $2 million in coverage, all online. life insurance made easy. check your price today at ethos.com. >> when you're the official vehicles. >> of winter, you can embrace everything the cold has to offer. leave fresh tracks with the safe and secure jeep grand. >> cherokee melt limitations. >> with. >> our most. >> capable jeep. >> wrangler ever, or. >> battle the elements and.

>> win in the jeep gladiator, hurry into the jeep president's day. sales event before these incredible offers. >> slip away. >> during the jeep president's day sales event, get 10%. below msrp for an average of $5,700 under msrp on these 2024 jeep wrangler models. see your local jeep brand dealer today. >> get vested. join the club. >> one of the key. >> benefits for. me is knowing. >> where jim. >> is going. >> to buy. >> or sell. >> before he does it. >> join the club. new member. save special offer for a limited time at cnbc.com. jim. terms and restrictions apply. >> welcome back. fast fashion group sheehan is reportedly delaying its plans for an ipo, following president trump's plans to clamp down on tariff free imports of small goods from china. sheehan was reportedly set to slash its valuation from $66 billion level that it had in a 2023 fundraising. guys, they had initially it had been reported that they were aiming

for some sort of ipo listing in the uk. >> as soon as easter. >> they filed confidentially for these papers with uk regulators for proposed ipo. >> i believe. >> in june. of last year. but a clear implication of some of these tariff rules taking effect right away. this is the de minimis exemption that specifically targets less expensive goods coming from china. which will now be subjected to a tariff which totally. usurps the business model of a sheehan, which has relied on the ability to kind of get in the country in a much less expensive way and. >> therefore sell their goods. >> to consumers in a less. expensive manner. and so it kind of it sounds like they're restructuring their own supply chain to account for. >> this. >> but it remains to be seen what that means for margins, what that means for prices, and then. >> what that. >> means for demand, which all are important as you're going to go on a road show and pitch a deal to investors. sure. >> and i guess the question. >> too is, i mean.

>> obviously you would think they could raise more money privately. is there some kind of impetus where they really want. >> to get out there and. >> have. >> public ownership or we don't know? >> yeah, that is my main question. >> to why. >> does it matter so much to be public? because they've hit some hurdles here. they were initially looking at listing in the us, then moved it to the uk. now they're looking to punt it to the second half of the year. as a result of all of these geopolitical implications. and so you're right, the private markets are fairly. >> wide. >> open one would think, although you know, the question mark surrounding private markets, investing in china is another situation. we've heard indications that that's kind of starting up again. but you know it remains to be seen kind of how much capital they would need. yeah. and whether the private markets are receptive. >> to trying. >> to leverage stocks have done great in the last. >> little while. >> so i mean, clearly it's a little more of a receptive market if obviously. >> if the. >> business model. >> is in there. >> and the whole deep state phenomenon is also attracted at least. attention to the region as far as private tech goes. >> as for the ipo window. >> well, we. >> had sailpoint on yesterday. he made an argument as to why

being public is still very much good for your legitimacy as well as your capital. we mentioned the performance of names like venture global. one of the big ones we've had so far has not gone well. and then we had david solomon and key biscayne, where you were saying, don't worry too much about a slow january. >> yeah. >> it's early in the year. >> yeah. moynihan said the same thing in particular about ipos, that they are starting to see that activity boil underneath the surface. it's interesting juxtaposing that with the actual performance, though, because as you mentioned, sailpoint did decline on its debut. you had smithfield and venture global. none of those were really kind of these remarkable debuts that would say that the buy side is really clamoring for more of these types of deals. you had. techcrunch reporting, i believe that. truro withdrew its plans for an ipo, ending a three year wait there. but another interesting dynamic, i think, with sailpoint in particular is the private equity aspect of all of this, because there was an ftc story that really honed in on thoma bravo, at least paper gains from this deal, which is

really, really important because so much of the backlog is comprised of private equity backed companies. so if you see someone like thoma bravo making $4 billion on a listing, at least. on paper, they didn't sell in the ipo, that can kind of help turn that flywheel back on for others to maybe want to do the same, right. >> on the other hand, i. >> mean. >> we've. >> talked about. this before. i mean, the initial. >> phase. >> it's like the. deals that the sellers want to. >> get out. >> there. >> as opposed to. >> some venture. >> backed company hitting its perfect stride, getting on. >> an exciting theme the. market's clamoring for. that will be the. >> real test of whether we're going to have an exuberant. >> ipo market. >> let's say, come spring. >> yeah. >> we haven't really seen any. >> of those deals come yet. >> we're still waiting, still waiting. >> we'll get the opening bell in a few moments. don't forget, you can catch us anytime, anywhere. just listen to and follow the squawk on the street opening bell podcast. >> earnings season on cnbc takes you inside the numbers. and when the ceos have a big announcement, they come here

first. >> a wild hour of. >> earning light

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>> in a world of uncertainty and disruption, how will your investments stay resilient? we've been navigating change for 125 years, always looking forward, anticipating risks, and. trusted to manage over. $1 trillion in assets worldwide. solving for the needs of investors today and tomorrow. that's the power of nuveen. >> the opening bell is brought to you by nuveen, a leader in income alternatives and responsible investing. >> we think interest rates are going to ultimately be coming down because of things that happen, and they go hand in hand with the tariffs. but we think that we think that the prices for some things, many things it

could be all things will go dow, ultimately will go down. >> the president yesterday. >> talking about the impact on prices of tariffs that there is this this sense. >> that it would that tariffs. >> bring about a. >> price. >> shock and that that curve inverts over time. you get a one time pop and then and then things settle. we will see. certainly the automakers have been visiting with the white house this week. argue otherwise. >> yeah. and i think it's the one time pop and settling at what level. it's not something that you would expect to see deflation per se come. you know, in the longer term. >> no. >> i really. >> just think. >> contraction globally. i almost think again that in aggregate, investors kind of punt on the specific details of how it flows through, and they just assume and rightly it's just friction in the system. there's cost in here. it's going to be distributed some way. it wouldn't be there otherwise. you know, it's the way that a tax increase might get diffused throughout. >> and you know, so you get the. >> frictional cost up front. whatever potential benefits in trade balance or. domestic

manufacturing is maybe. to come after that. >> so i think that's the. >> issue. >> i think the market. >> can look through some of. >> these details, but the c-suite cannot. and it's kind of generating some uncertainty in terms of how that might. >> trade uncertainty. >> indexes have been near. >> record highs in. >> recent weeks. >> let's get. >> the opening bell here in the cnbc real time. >> exchange of the big board. it's carmon space and defense celebrating an ipo at the nasdaq. we love this one nbc universal celebrating 50 years of saturday night live. that's matt strauss, the chairman of nbc universal media group. katie hockmeyer, the evp of late night programing. mark marshall, the chair of global advertising alongside a bunch of snl cast members both past and present chloe fineman, taran killam, jay pharoah, alex moffat, and garrett morris. by the way, be sure to tune in this sunday at 8 p.m. eastern for snl's 50th

anniversary special. >> mike, we talk. >> a lot about this off camera. they've done this right. they've they've got specials on the red carpet. they've got one on just music. and of course, sunday they'll be the big one. i mean, the build up has been almost. since the 40th, i feel like. but no, but in the, in the home stretch here. yes. all the all the preparatory docs also got full, full involvement seemingly from everybody who's out there in the alumni society. >> franchise that has a 50 year tenure. i mean, that is that is definitely worth celebrating, especially in the changing political environment that we've seen, the changing. societal backdrop we've seen, which they're supposed to be mirroring, to have that kind of survival. >> yeah. >> if you're if you've been in the s&p 500 for 50 years, you're in. rare company. lorne lorne michaels is like the buffett of culture. i mean. >> the ability to. >> ride it out, cycle after cycle, reinvent, find new talent, invest. >> in what you know. >> yes. take chances. yeah. we're i mean, obviously we're. >> homers, but. we're we're proud of the show and can't wait

for sunday. as for the open here, mike, i'm just thinking of the themes that ran us through the week. one was dovish takes on inflation data. the other was taking some solace in the delayed tariff implementation. and then powell didn't spook anybody really. >> this week. >> he didn't. definitely no alarm. sounded about that. >> cpi number. >> on the second day of his testimony. the bond market. i mean, you have to pay attention to the fact, as rick was just saying, that it has actually come in in. yield and meaning. >> it's sort of. looking at the. >> softer retail sales. it's looking at the pretty much as expected indications of cpi and ppi for the fed. >> and saying. >> nothing to. >> be too worried. >> about at this point. >> on the. >> on the inflation front. so all that stuff is working. earnings again they're coming in okay. but really jumpy. jerky moves in response. i like the bespoke number which is 13. stocks this week rose 15% or more on earnings 16 dropped 15% or more on earnings. exactly. we don't have one of those up 15 today. but airbnb is up 13%. and

i think what that tells you is, you know, high valuations, high expectations across. >> the. >> board. >> but also. >> just this flow. i keep pointing it out. >> this flow of. >> erratic kind of hot, high adrenaline money in a lot of the retail favorites. and so some of these recognizable names that. >> you know. >> had their heyday in the melt up in 2021. >> like a roku. >> for example. >> you know, it's going to get some attention. when it when it beats numbers and vice versa as well. on the downside. >> yeah. and you kind of. juxtapose that with some of the stocks that had been maybe priced to perfection. i believe. >> it was. >> b of a who had that statistic about how since jan 20th. and they're, they're comparing the mac seven to the chinese tech x baidu alibaba tencent and xiaomi. that group was up 22% compared to just flat performance for the mac seven over that time period. but just kind of, to your point, maybe speaks a little bit to the mindset, this. idea of picking up in places that have been

beaten down and. >> and things just got very stretched in one direction. >> for a. >> long time. >> you know. >> my, my always punch up a five year chart rule should apply here because you really seeing where. >> the chinese. >> basket is coming. >> from in terms. >> of the depths. >> of underperformance. >> relative to mac seven. >> and so it shows you. >> that there has been. >> this cycling. >> of money. >> looking for. >> you know, other individual names that haven't participated. it's interesting, i was saying yesterday one of my measures of. lack of conviction among u.s. investors or just going for. >> like, you know, the. >> usual high. >> momentum. >> high quality suspects is the way walmart and costco go up every day and they're at skyscraping valuations that even those stocks never had before. and it sort of feels like it's sort of feels as safe on a technical basis here. we finally have some give back in walmart. >> but look at that $0.20. >> i mean. >> it's nuts. >> and costco. >> is super expensive. >> nobody cares. >> and they've also over the last two years basically. >> tracked amazon. they're viewed as an amazon. >> but so. >> presumably sometimes this gets backfilled into other

stocks. >> when people. >> get. >> more conviction that not just the biggest and greatest scale. >> winners are going. >> to are going to be able. >> to produce. >> yeah. >> i was thinking, you know. >> because of the house budget resolution. >> this week. >> whether or not there was a discussion of snap. low income. >> food. >> assistance, which is. >> sometimes in budget. >> cycles. >> you begin to hear that fold into. >> equity research. >> on names like the discounters sometimes walmart. hasn't happened yet. no, it's not, i guess not close enough yet, but there's no doubt about that. that's the kind. >> of hanging out there. >> should we mention. >> i mean, bespoke made the point. >> yesterday us in. >> the list of country etfs. performance year to date is in the bottom half. yeah. >> leading the world. >> it's poland. >> it's sweden, it's. >> germany, it's spain. you don't see the us lag that that far. at least not usually. and i know it's early and that's mean reversion. i mean initially and. >> you know, the. >> idea that we were going to have a broadening performance. >> profile of the us market. >> maybe into value from growth. >> into cyclical from. from mega-cap growth. well, all of

that would also imply that's the kind of stocks that would perform okay. overseas is all all markets outside the us. it's an etf. it's up 7.5% year to date. you know and. >> that's relative. >> to. 4% for the s&p. so it. >> does show you. >> that this has been working on. >> some level. >> maybe it's you know weaker currency elsewhere. maybe it's. >> bottoming economies elsewhere. >> maybe it's the ecb is going to. >> end up. >> looking a lot more dovish than our fed at this point. so a lot of stuff is. >> part and. >> parcel of that. >> yeah i do wonder too, mike, how much of the policy uncertainty is leading investors outside of the us as they kind of take a pause on adding? >> yeah. >> you know, in terms of flows, it. >> wouldn't surprise me, although. >> a lot of this would. >> not be kind. a lot of the policies. >> people may be. concerned about. >> would not be. >> kind to our trading partners. >> certainly. >> you know, when we got. >> the canada. >> mexico announcement. for 25%. >> tariffs. >> you could. >> just pencil in a. recession for those economies. right? i mean. >> that's so i.

>> don't. >> know. >> that it's. >> it's. >> just about. >> relative economics. >> in europe opportunity. but europe. >> has been had been in kind of. like skirting recession. >> for a while. so a little bit. >> of. a of an upswing. >> as far as movers. >> go, chips. >> are. >> definitely one to watch. >> a story on the. >> tape today looking at whether the administration. >> might be looking to renegotiate some. >> of the 39 billion in subsidies that are part of the chips act. kla-tencor. >> for example. >> one of the biggest. losers at the moment on the s&p, although intel continues. >> on pace for the best week since 75. >> is that right? >> intel is now. yeah. intel is now kind of viewed as this. >> proxy of okay, we're going to. >> do more domestic production. >> so whether it's going to happen soon or not or whether it really is going to. >> move things around. >> also obviously. >> super depressed. >> washed out stock, we all know about that. so yeah. that is the. way it's starting to. >> to trade. >> anyway at this point. >> how do you think the implications lie for some of these companies, given that we see arm producing its own chips,

apple using its own chips. i mean, there does seem to be more of this build it internally as opposed. >> to. >> or design it. >> internally. >> design it. >> and so it's a matter of who's going to. >> actually build them. and is. >> it a taiwan semi thing. is it a global foundries thing. >> is it an intel thing? by the way we. >> just saw arm there. >> is on the tape as well. nvidia cutting. a stake in arm and investing some others in. we ride one another chinese name. so nvidia's portfolio moving some names as well. i think amat also one of the losers i was going to mention that. yeah, that was on the numbers. >> last night. and it just. >> was sort of not. >> the not the most enthusiastic. >> guide stock down. >> five and a half or so percent. so there's just a lot of. >> this, you know. >> waiting and. >> waiting and waiting for non ai chips and chip equipment. companies to actually show that the trough is here in the cycle. >> and of course. >> there's a lot of. >> the export. >> restrictions on the. >> on the semi. >> equipment and things like that. >> it's been an. >> overhang on, on a name that, you know, in the semi.

>> equipment world doesn't look too expensive. it's just not a. >> lot of confidence there, right. >> looking at airbnb right now you mentioned mike that stock is up now. it's up 12% better than expected earnings and revenue. >> markets really excited. >> about this one. >> yeah i mean i. >> think the wall street analysts are. >> not excited about this one. >> investors are excited. this reserve of you. >> know what it's. >> going to be the payoff. it's a little bit of an investment cycle the company is. undertaking at this point going to a different geographies. now the stock had also just been kind of. >> churning around this range for a long time. so it's. >> not as. >> if. >> it's been, you know, making new highs. >> but i think it was a net. net favorable take. >> and that's. >> gordon haskett here upgrading airbnb. >> somebody also went from a. >> sell to. >> a neutral on it. >> so yeah yeah. baird. baird and goldman both had upgrades today. yeah. so it sort of seems as. >> if. >> you know warming to the story, although it. >> is. >> coming at a time when

traditional lodging stocks after. >> an amazing run. >> have had. >> a little bit of. >> a of a. >> hiccup as they've reported. marriott and hyatt this week. >> yeah. >> palo alto going. >> to be down about 5%. >> they did have. >> an eps. >> and. >> revenue miss. the guide really wasn't that far. >> from consensus, mike. >> but again we're in that environment where. >> try to think what the other example was this week where sort of. an in-line guide and got punished somewhat. it did look, i mean, we're in a. >> world where. >> we sort of shrug when it's out, 77% of companies are beating estimates, and it's every single quarter. so 77% are beating implicitly. the market learns that, and you have to do more than beat. and confirm guidance if the stock's already been performing well. >> so yeah i. >> think that's. >> that's essentially. >> where we are. >> with, with, you know, palo. >> alto. >> you know we've talked before. >> about first quarter. >> there's not a lot of incentive to over promise. and there's enough kind of macro. >> uncertainties for. >> you to kind. >> of. >> lean on to say we're going to

be withholding. of our promises. now first quarter earnings, they're starting to soften up a little bit on the guides. and outside of mag seven, full year. 2025 numbers have. >> shown some downside. >> so it's not as if everything is. >> is. racing ahead. >> relative to expectations. >> there seems to be a bit of a crypto theme today as well with, you know, you've got the coinbase earnings. those were higher thanks to the crypto rally that they saw. and then there was the cnbc story, the. >> cnbc exclusive about. >> gamestop considering investing in bitcoin and other cryptocurrencies. following that picture without a caption that we saw ryan cohen post. >> with michael saylor. >> yeah. michael saylor. >> yeah. >> i mean. >> you know. >> this is now kind of the one of the follow on bull cases for bitcoin is that it's going. to become. >> a routine thing that a lot more. >> companies are going to start allocating. >> their. >> treasury cash to bitcoin. bill miller the. >> fourth was on. >> closing bell yesterday talking about this. now when it. >> comes to gamestop i mean i. >> guess no retail. >> trading meme stock frenzy.

>> phase is complete unless. >> gamestop somehow. >> gets involved. >> and raises its hand and. >> says we're going to. >> do something, there's like 4.5 billion. >> in cash on gamestop balance sheet. not really much debt. presumably there's leases. >> on the 4000. stores they still have. >> the business. is has. got declining. >> sales and is being run kind of break even right now. so essentially if you did something with that. >> few billion dollars in cash, i don't know, it's an $11.8. >> billion market cap right now. >> so what are you going to pay. >> for a few. >> billion dollars in bitcoin. presumably acquired at today's prices, not benefiting from the run up? we've already you know, it's a it's. >> one of these funny things. >> i mean what what microstrategy. >> now strategy does. is they. >> sell. >> convertible debt equity to sort of funnel. >> it into. and they have a sort of a leverage. >> factor in. >> terms of buying their bitcoin. and people have. >> tried. >> to. make the argument why that's. >> worth paying more. for because they can. >> kind of. >> borrow the market. >> can just sort. >> of pay them to. >> to buy. >> the bitcoin. >> on some short term level. >> it doesn't work unless you. >> can keep doing it.

>> but for now. >> they've been able to keep doing it. so i find it. >> interesting that that gamestop is there. interesting to the coin. coinbase is trading down. >> yeah i was going to say great number. >> yeah. revenue up 88. >> expenses up. >> i think 19. they talk about a new. era in crypto given the policy changes in washington. >> mega bullish tone. >> now there was some. >> of the analysts saying that the operating expense guide for current. >> quarter and. >> forward going was a. >> little bit high. >> so they're doing a. >> lot of investing. they're doing. they feel as if this is the time. to do that. >> i guess. >> the question if you're if you're. >> an. >> investor. >> in the. >> stock would. >> be was fourth quarter. when bitcoin quadrupled in the prior year and. >> we. >> celebrated the election. >> of the first crypto. >> president, was that the. >> start of something. >> or was. that the. >> culmination of something? and so i think. >> that's in terms of. >> extrapolating fourth quarter levels of. >> trading activity of retail. i mean, we saw. >> it in. >> robinhood too. it was wild. so do we think it's we think that's. >> the run rate now. >> or is it going to have a little bit of a cooling off.

>> and so. >> that to me is. >> where. >> you know, is why the stock. >> is kind of. >> trading the way. >> it is. >> three analysts still raise their price target on it though. >> yeah. >> it's i mean the numbers are hard to you know, you have to bring your. >> earnings. >> numbers up given what they've shown. >> in the fourth quarter. >> so i get it. >> i also think there's it's if you wrap it all together coinbase, robinhood draftkings okay. i mean we have we have a. country right now that all they want to do is. >> lay longshot bets and, you know, get paid off quick. yeah i mean. >> that's kind of the divide. we haven't mentioned draftkings ebitda beat sales in line, but monthly uniques up 36. and they do raise the guy. that's a new all time high on draftkings today. >> yes. >> and you know, it's. >> been perceived. >> as being a little bit of a half step. >> behind fanduel. >> right. >> flutter and such. >> based on. >> some of the data some. >> of the. >> parlay bets. >> but it is fascinating when you read. >> the commentary or listen to. >> the ceo. >> talk about. >> you know, why. >> they've done well. >> and it's. >> like, oh, we have a lot more. people like playing the playing the parlays. we have a better.

>> take on. >> the part. >> so it's. >> like we're convincing. >> more people. >> to. >> do the. >> riskier stuff that they're going. >> to lose more money on, and. >> they happily give us the money to do it. >> so that's. >> that's the game. >> and that stock is up 7%. yeah. on that business. >> yeah i mean. >> it had it, it. >> had it hadn't been racing ahead. >> till here. >> but yeah now it's. >> a little. >> bit of a of an upside capitulation. >> yeah. >> also wind up nine is going to be the second biggest gainer. >> although just now. >> getting back to the 200 day moving average as we. go to break watch bonds. we mentioned a little bit of relief in yields this morning on the in the wake of. >> that. weaker than expected retail sales number, the. >> weakest monthly decline. since march of 2310 years back below four and a half to 4.47. >> we'll be right back. >> the bond report is brought to you by pimco, a global leader in active fixed income.

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at elon musk's growing involvement at the white house. what it might mean for tesla. wired has got this story out today looking at. >> what they. >> call staggering sales drops. fan forums where owners talk about how to. >> sell their cars. shares already. >> down double. >> digits. >> digits. >> this month, as you know what's brilliant? boring. think about it. boring makes vacations happen, early retirements possible, and startups start up. that's why pnc bank strives to be boring with your money. the pragmatic, calculated kind of boring. (grandpa) i'm the richest guy in the world. (man 1) i have time to give. (man 2) i have people i can count on. (grandma) and a million stories to share. (vo) the key to being rich is knowing what counts. ♪♪ only servicenow connects every corner of your business, putting ai to work for people. pfft ... every corner? every corner, nick. ow! so kate in hr ... hey kate. can focus on people, not process.

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for. >> the impact on tesla stock. despite surging nearly 40% since the election. stock has fallen double digits since the president took office. joining us this morning, canaccord george is with us price target of 404 and keeps his buy rating. george always good to talk to you. happy friday. >> happy friday. >> thanks for having me. carl you've written a lot. we talked. about the deliveries. >> and the margins. >> and delivery. guidance going into the. >> quarter last time. have you. written a lot about the. musk brand and whether it's subsuming the tesla brand? >> well, look. >> carl, the reality. >> is that the trends in the us and europe last year weren't great. they were saved by remarkably strong year in china. and so far. >> this. >> year, just the little eensy weensy data points that we have suggest that the trends aren't

great so far in 2025. but the stock is really hinging upon. the new vehicles that they're introducing. first, the new model y, which looks like a remarkably nice vehicle, and the promise of additional vehicles throughout the rest. >> of. >> the year. so what elon musk referred to on the call about a, i think, an epic 2026 and ridiculous. 27 and 28 had a lot to do with new product introductions, both on the vehicle side. obviously, they're going to start ramping optimus production, so we'll have to wait and see. we kept our buy rating because usually in technology or in vehicles, when you have new products coming out and the company is in a really good job of introducing new products that people like. those tend to really move the p and l and re and reinvigorate growth. so that's what we're hoping for. and we'll see. we'll find out how compelling the new vehicles are. so far so good with the new model y. >> all right we mentioned. >> this. >> wired piece. and i know. >> wired has been. >> critical of. >> musk in general. >> but they. >> do point to. the sales declines that we have numbers

for. and they kind of get. >> into this culture of. >> of fans. >> who are at least. >> vocal about disowning their teslas somehow. how relevant is. >> that. >> when so. >> much of the at least your research. >> is about full. >> self-driving and. >> optimus and so forth? >> it's really important, right? so tesla has to have vehicles. >> on the road. >> that people want. >> to buy in order to adopt full self driving. >> and there's a really. >> important data point this year. they're going to start cyber cab rides in austin in the middle of. >> the year. >> and so we'll see how successful that is. obviously elon musk has made many promises about full self-driving and now unsupervised full self-driving in the middle of the year. the autonomous business is incredibly important for tesla going forward, not just because we said so, but because elon musk has said so. so number one, they have to see better adoption rates for people who already own teslas that can adopt it, that will move the margins, but also they have to have a successful launch of the cyber cab in austin. >> this year. >> for people to believe that their technology. approach is

the right one. their technology approach is controversial. they're using only cameras. other companies that we cover in this space use multiple sensors, and according to the company, they're relying on a neural network approach, i.e. there's no software encoding. you don't have an engineers who are overriding the ai to make decisions for the vehicle. so we'll see. >> how do you how do you think about. >> just the overall. >> valuation levels? i know you have a buy rating on the stock, but isn't it still pretty expensive despite having shed, you know, hundreds of billions of dollars in the last two months? slight rebound here. but i mean, this is still a pretty expensive stock, especially as you're looking pretty far out for some of these upside catalysts, right. >> look, you're. >> going to have to pay an expensive. multiple for a company like tesla for a premium asset in the space. what we look forward to over the next couple of years is really good. >> growth. >> based on. >> these new products, based on continued growth in energy storage and the promise, right,

we apply a healthy 40 multiple to 2027 earnings estimates that are around $10. the promise beyond 2027 are is continued growth in evs, robotics, full self-driving, energy storage, all the things that he's talked about elon musk has talked about. so you have to believe that these other new markets, which we do, will result in continued growth for tesla beyond 2027. it's a it's a rare asset, right. when you have an industry disruptor like tesla, it's always hard to understand exactly what the right multiple to put on it is. i mean, look think about google, think about amazon. think about other companies that have disrupted traditional industries. and tesla is one of those. so that's why. >> we decided. >> to. apply a very healthy multiple to our 2027 numbers, based on the promise of those new products beyond that year. >> right? >> yeah, there was a. >> period there where. >> the thinking was, well, all legacy oems go to the same. >> multiple eventually, but tesla is definitely. >> giving us new stuff to consider.

>> george, talk soon, i hope. thank you george. canaccord got some more data coming up after the break. in the meantime pretty steady open. dow's down 20 points. don't go anywhere. >> 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 solutions to build the portfolios of the future today. alternatives by franklin alternatives by franklin templeton, business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions

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>> he teaches how to invest. >> versus just what trades to make. >> return on investment for the club pays. >> for itself. join the club new member save with a special offer for a limited time at cnbc.com. jim. terms and restrictions apply. >> good friday morning. welcome to another hour. >> of squawk on the street i'm carl. >> quintanilla with leslie picker michael santoli here at post nine of the new york stock exchange david faber sara eisen have the morning off market kind of keeping the cards close to the vest on this friday. dow is virtually unchanged. s&p is still hanging on to a gain for the week of more than a percent, but a lot of things in flux ahead of a long holiday weekend. >> and we're 30 minutes. >> into the trading. >> session here. three big movers for watching this morning. big tech in focus. meta coming off 19. actually no there it goes. it's positive up about 0.3%. it had had 19 straight days of gains, which was the longest daily win streak for any

stock in the s&p 500 since 2000. so i believe this would be the 20th there and be a top gainer, beating estimates on the top and bottom line. with nights and experiences booked rising 12% from a year ago also topping expectations. that stock up about 14%. and applied materials, under pressure revenue guidance came in below estimates. it said it expects escalating geopolitical tensions to weigh on sales of its chip making equipment. and for context, china represents the company's largest market share by revenue. amat down more than 5% at. >> this hour. >> got some more economic data just crossing. >> the tape. >> rick santelli has it. >> for us. >> hey, rick. >> yes, mike. indeed. this is the last of the data for the week in the form of december business inventories expecting down one tenth. it's down 2/10 of a percent. now something interesting about this of course is a fourth quarter number. it could have some bearing on gdp. when you take away inventories at some production you lose. but what's interesting is, is that

we've had several down 2/10 in the fourth quarter of 2023. but to find a bigger month over month drop in business inventories get this meaning looking for 3/10 or higher. you have to go all the way back to june of 2020, june of 2020, and maybe the big news today, the dollar index looks like it's going to close under 107. that hasn't happened since mid december. we want to keep a close eye on that. and four and a quarter and a ten is down four basis points on the week 4.47 and a ten is down three basis points on a week. we want to watch these. yield closes on a friday after big inflation data quite carefully. leslie back to you and happy valentine's day. >> happy valentine's day to you, rick, and thank you for flagging that. appreciate it. let's get right to washington. a day after president trump announced those reciprocal tariffs, which could take effect in several months time. eamon javers has the latest from the white house. eamon. >> you know, leslie, yesterday

the president brought a small group of us into the oval. office and took questions on. every topic. you know, no restrictions whatsoever for. nearly an hour. right. so we've got a really unvarnished look at the way he sees tariffs and wanted to play this sound bite for you, because i think it shows how much. >> he values tariffs. >> take a listen. >> reciprocal tariffs those two words reciprocal or reciprocal makes tariffs really fair. >> no exemptions right. it would be all auto imports. >> any exemptions. no because you don't need to with reciprocal. you don't need to. >> so we know that. >> a lot of industry groups. >> and international. partners have been lobbying this white house. >> for exemptions. >> the president there, you heard him say he doesn't see any exemptions in these. >> tariffs. >> which will start. >> to roll. >> out after april 1st. you know, one of the really interesting moments in the oval office yesterday was the president describing sort of a layering cake. >> effect of tariffs. >> he was talking about these

tariffs. >> going. >> into effect in april, but also the additional 25% tariffs if they go into place on. canada and mexico. on top of that, tariffs on pharmaceuticals in particular, on automotives in particular. above that he kept saying over and above, over and above. so what you get is an impression of a president who. >> wants to kind. >> of stack. >> layers of. >> tariffs on top of. >> each. >> other as he singles out particular industries, singles out particular countries. and i think what we're going to have now, guys. is an open ended negotiating period as industries and countries try to get themselves off that list and cut side deals with the president. he sees himself as a dealmaker in chief. he relishes that atmosphere. i think that's what we're going to see. he joked yesterday in the oval that, you know, in addition to god and family. tariffs might be, you know, number four on the list of things he loves the most guys. >> yeah. and eamon i mean. >> in that vein. >> it seems also. >> that the. >> president's instinct is to always try to preserve leverage in the form.

>> of maybe. >> having those tariffs down the road. so even if you're not doing it today, you kind of almost maintaining the. >> doubt as to whether they're. >> going to hit or. >> not or how hard they're going to hit. >> yes, you want to cut the deals. but he. >> also seems to just like to be. able to kind of. >> preserve that bit. >> of leverage. >> yeah, i mean, the one of the president's. >> classic strategies. >> is sort of the dangle, right? the art of the dangle. he dangles positive and negative things in front of people. he understands very acutely what people want from him. and he sort of dangles the possibility of getting that until he gets what he wants from that person, or he dangles the threat of something, in this case, tariffs, until he gets the behavior that he wants. so it's all about leverage from trump's perspective. you saw him doing it yesterday. and of course, they are keeping a very clear eye on wall street. they of course. noticed the melt up in stocks yesterday after we reported that, in fact, no tariffs were going into effect yesterday. they understand that wall street doesn't want to see these things. and if they want

to have a soaring stock market, they also have to keep an eye there. >> eamon appreciate that. >> we'll talk soon. eamon javers outside the white house on this friday. let's pivot a. >> bit to apple. >> the president yesterday. >> saying there would be no. >> exemptions. as eamon said when tariffs go into place this time around because they make a lot of their products in china and it wouldn't be fair in terms of china. apple reportedly. continuing to work with baidu, as you know, on these ai features for its iphones there. shares this morning up a full percent back to 244. tim cook yesterday on x teased february 19th as the company's new product launch date, and melius research analyst ben righteous has joined. joins us this morning to discuss his expectations for that. has a buy 295. happy friday. ben good to see you. >> yeah happy. >> valentine's day guys. >> what do you think? >> where what moved the needle this this week. >> on apple's. >> narrative do you think. well i. >> think china's. >> a big deal. >> like getting. >> ai momentum there. we've heard from apple that. when ai. features are out, they see an uptick in sales. we even heard from qualcomm on the android side that when ai features are

out in china, we see an uptick in sales. and you're seeing it with huawei. so apple is going to get the same thing once. >> they get this out. >> and there was a narrative they. couldn't do it. >> and to be. >> allied with. >> the best. >> of alibaba. >> and the best. >> of baidu, on. >> the search side, it sounds like. >> a. >> great combo. >> and look, tim cook. >> has a great relationship. >> with china and you people forget that. >> so 20%. >> of sales. >> has. >> a. >> chance of turning to growth. >> once. >> they get. >> this out. that's a. >> big deal and it's within an investable time frame. >> so these third party surveys about how consumers were unimpressed with apple intelligence features. you think that's. >> a thing of the past? >> well. >> i think. >> they continue to iterate. i think it's. >> nothing's ever perfect. and there's. >> always when. >> apple does anything. >> there's a microscope. >> on this company. >> i mean. >> if there. >> is any. >> fly in any. >> ointment, you hear. about it. >> unlike any other. >> company. >> these guys. >> make the. best products. >> in the world. >> yes. >> this one has a little more publicity. >> than some. >> others. >> but i. >> think they'll iron. >> it. >> all out. >> and there's. >> some features incrementally. >> as we go.

>> that. get better and better. and i think we'll see a big uptick with the 17. >> as well. >> you mentioned, of course. >> that. >> cook is close with china. is he close enough to trump? and i ask this because i know last time around they were able to get an exemption around some of these tariffs. and it doesn't seem like that may be the case this time around. what are your channel checks say? >> well. >> he has a good relationship. >> with trump. >> he was. >> at the inauguration. and he's. >> i think he's impressed trump. >> in the past. and he. >> is very. >> good. >> with these state. >> leaders. >> whether it's. >> ours or other international leaders. >> i think that. >> in terms of. >> tariffs. apple will obviously get hit by them. we obviously we. >> don't have. >> margins going up. >> too much. >> but they have. >> a lot of things going their way in terms of. margins to. >> offset tariffs. >> they have a. positive mix shift. >> we think that's going to happen when the iphones come out. >> later. >> this year. they're going to. >> in-source more. components such as the modems. >> such as even. >> certain other. >> chips. >> and. >> that's going. >> to insulate. >> margins as well. >> but they're. >> going to mix people up to higher prices. >> and then the. >> mix shift towards services continues. so that's just math.

so i think that they have a good. >> chance of even expanding. margins slightly. >> but tariffs are a risk. >> and if that. >> happens we're. >> going to. really hope. >> that we. >> get. >> our revenue growth going and they buy. >> back more stock. >> but they have a. >> lot of levers. >> don't ever count out the levers. this company can. >> always buy back more stock. >> the kind of. tease of the. >> new se model iphone. i mean, is that a needle. mover or is it just. >> kind of we knew it was. >> coming and. >> it's going. >> to fill. >> in a certain slot in the in. >> the lineup. i don't think it's a huge needle mover. >> but it'll. >> be probably a higher margin version because they have some components that they've in-sourced. >> such as the modem. >> and other things. i think that this will be apple. >> intelligence ready. >> so it's a. little bit of razor and. >> blades the. >> more they get these ces out. and it's a good design. it's a. worthy upgrade. >> for the. >> low end. you're you're. >> you're planning to. >> raise or to sell the. >> services blades later on. >> and so. >> that is important for us. the big launch though. >> that's coming. >> is later this year with the. iphone air and. >> other redesigns. >> that cause. potentially people.

>> to. >> mix up to higher. >> prices and. >> units grow. >> at least a little bit. then we get our 10%. >> revenue growth. >> and the stock works. what's your read on on valuation and multiples relative to the rest of the mag? seven what does apple deserve? >> where they are. >> absolutely deserves where. >> we are. they have real free cash flow. their share count actually. >> goes down. >> it's not look within. >> the mag seven. >> there's several. >> of the. >> comps that you have where the free cash flow. >> is well below earnings. >> and it might. >> be for a while now. >> that's great and. >> all if it. >> accelerates revenue growth. >> but as. >> we you ask the. >> right question though mag seven. >> you got to comp. >> this to other mag. >> seven. >> and they have. >> real free cash flow. >> where it's a. real buyback that. >> really lowers. >> share count. microsoft for example. >> is just kind of. >> buys back enough stock to keep the share count flat. a lot. >> of these. software type companies. >> really give. >> out tons of options. >> this is. >> a real buyback with real cash flow that is. >> showing. >> hey. >> we're a.

>> toll road to ai. >> we're not. >> we don't have. >> to. >> invest like you do. and i think. >> it's a worthy multiple. >> and are they would you argue they're unencumbered on capex the way some of their. >> rivals absolutely are not. they can they can mix and match. >> so they have. privacy servers. >> they're probably going to do their own, you know, work on. >> some chips. >> for their own data centers. >> but they're. >> they're they don't have to spend like the other guys. >> they they can do an asset light. >> model and pawn off capex to the googles. and baidu's. and alibaba's and others. and that's the best way to be. and they remember they're a. >> toll road to your, you know, to the. >> mobile device. >> and as. >> long as they do that a good job with that, they're going to win. >> you touched a little bit on ai and just the overall implications. how are you now that we've had some time to digest the whole deep sea phenomenon? yeah. how do you see the chips falling and the potential benefit for apple. and then do you see any other risks out there that they may fall into? >> well. >> the knee jerk reaction to

deep sea, you know, now that we've had. >> a chance. >> is, is apple should benefit from a lower cost of compute. >> and it should improve the. >> margins of like their services business. >> right. >> and so. >> that's great. >> and that should. >> allow more innovation. >> even in apps and things they don't even make themselves. and then they benefit by being. >> a toll. >> road to mobile glory. right. and so that's great for them. >> the more i. >> use and the more that can get into the phone. >> the more you're going to. >> need edge processing. >> which is they're really. >> good at. and privacy is going to become a bigger issue. and their bet on privacy is probably going. >> to look smarter. >> and smarter. >> as. >> we get. >> going on this ai thing. so i'm pretty positive. that deep. >> sea creates more. >> innovation. more apps, and apple is a. >> winner. >> and they're in a good spot for that. >> yeah, it's certainly privacy. >> has been one. >> of their at least their their framing. of privacy. >> has. >> been their hallmark. >> it's going to be a big deal. you're going to i mean and. >> hopefully they. >> really help us because there's going to be a lot of threats out there to your

privacy. and i feel like apple is a good guy on our side for that and going to be a trusted and it's going to help their brand. >> ben, have a great weekend. hey thanks guys. all the best. always great to be here. thanks, carl. >> all right. arm reportedly. launching its own chip this year in a. >> move. >> that some say could upend the semiconductor industry. shares are lower this morning, you see, down about 4.2%. kristina partsinevelos has been tracking the action. joins us with more on the chips. hi, kristina. >> hi, mike. well, arm. >> finds. itself really. >> in an interesting crossroad. >> right now. the company is known for creating the blueprints. >> that others. >> use to build computer. >> chips, particularly. >> cpus, central processing units, which are. really the brains of computing devices. recently. >> there's been. >> some buzz. about a month ago, that arm was potentially buying. >> ampere, which. >> is another. cpu designer, which would let. >> arm start. making actual. >> chips instead. >> of just selling. >> the designs on paper. this move pretty much makes sense, right? because arm already. has the intellectual. >> property. >> so. >> why not. >> build the chips themselves? >> but there are.

>> some major hurdles. >> and challenges to consider. >> first. >> there's the money question, as wedbush analyst matt bryson points out. even with. the exciting. possibilities ai brings, the market might not be big enough to justify. >> arm's current valuation. which is quite higher compared to others. >> even if arm starts making. >> cpus for major data. >> centers. >> they'd be jumping into. >> a tough. >> market where intel. >> and amd. >> are already. >> well established and. competing with each other constantly. >> they likely. >> need to charge. >> premium prices as well for their chips to make. >> it worthwhile. but perhaps. >> the biggest. issue is how this would affect. >> arm's relationship. >> with its current customers. >> so think about it. >> arm would. >> essentially be telling companies, hey, use our designs to make your. >> chips. >> but also. want to buy. >> our chips that compete with. yours as well. as fargo. >> aptly puts arm. >> would be giving up its. >> neutral switzerland. >> position in the semiconductor. >> world, where. everyone trusts. >> them as. >> an impartial partner. there's one. clear winner. >> though. >> in this scenario, and that

would be. >> taiwan semiconductor, because they would likely become the manufacturer. >> for these. >> arm chips, strengthening their position in the. >> industry already. >> but you can. >> see shares are down nonetheless. but they make a lot. >> of chips for a lot. >> of companies. guys. >> well for. >> sure. >> christina. >> it's interesting that. >> arm is thinking about going. >> in this direction. >> it seems like for. >> most industries. >> or companies. >> the dream. >> is to. >> be like, let's get out of. the kind of capital intensive, sort of asset encumbered. >> part of. >> this business. >> and. >> just get paid for intellectual property. >> that would be. >> great, right? >> that's asset. >> light, probably. >> higher returns. so what are they finding that. >> they're. >> bumping up against. >> that they. >> would. >> prefer to have. >> their own line. >> of actual chips. >> yeah the description would. be asset light. >> and you're. >> right because the premium for. >> valuations is. >> a lot higher. >> overhead costs. >> are a lot. >> lower. >> for intel. >> for example they're. >> building a. foundry business. and over the. last three years they. >> spent $40 billion in arms case. i think. >> it's because so many. >> of these other chip. >> companies qualcomm for.

example are using the ip to build. >> these great cpus. >> and eventually maybe they will no longer need that particular ip. so arm is trying to position themselves in a market in the. future where they. are building the chips and everyone else is competing. should openai. >> do so? the stargate project we've talked about. >> you have meta. >> you have. >> all of these. >> companies creating their own chips. so arm wants to. >> make sure that they're going. to still be relevant in the future. fascinating, christina, thank you for breaking down the order of magnitude for the semiconductor space right now. appreciate it. as we head to break, here's our roadmap for the rest of the hour. egg prices surging to an all time high. when will consumers see some relief? we'll get a read from the ground. >> plus, cybersecurity stocks outperforming since trump took office. why? >> the ceo. >> of palo alto says musk's department of efficiency is a tailwind for the sector. and cnbc's official valuations. >> of the nba. >> are out. we'll find out where your team stacks up later on this hour, as squawk on the

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you look at what those banks did. over the last. year in 2024. it's kind of remarkable. i just have a 12 month performance right now looking at 75% gains for goldman sachs, 65% gains for morgan stanley. oh, there you go. the one year chart right there. so morgan stanley up 65% in the last year. jp morgan up 58%. goldman up 75%. so you put that into context. when you look at some of the raises that. >> the ceos. >> got, it is it's been a pretty remarkable 12 months for the banks and their their pay packages. >> and it does feel like. >> 30 million is. kind of. you know. >> that's that's. >> your your baseline bogey. >> i mean there's. >> most of it is. >> stock of course. and you. >> know i. >> always mention when you have. >> a relatively. >> new ceo, a lot. >> of times. the board. wants to load them up with with more stock. >> but i also it's. >> worth keeping in mind these. >> are companies where. >> there's a. >> lot of amazingly. highly

paid. >> people spread throughout. the upper ranks. >> and so, you know. >> i would also add that retention bonuses have been a big theme as well. you had ten pick. as long as some of the. >> two. >> co-presidents getting $20 million each last year is being part of that succession race. david sullivan had a retention bonus for the next five years to remain and john waldron there as well. so that's another key component of the whole compensation element. >> by the. >> way, jp morgan, i think all time high today. >> within 22. bucks of 3a3 handle. it's the costco. >> of banks diamond head. no i'm serious in. terms of. >> it. being like the clear. >> i know exactly. >> what you value momentum. >> quality and therefore. >> it's you justifying. >> a premium. >> valuation on the backdrop of this this efficiency push. that diamond talked about repeatedly this week. >> whether that. was returned. >> to office or yesterday, the. dei initiatives, which he called stupid and said he would have been cutting. >> even without trump in office.

>> well, and he did talk to andrew a bit about this in davos as well, where he. >> spoke about how. >> as it pertains to die, they kind of go their own way and do what they think is best for the bank, whether that fits into the broader mold of dei as people know it. and that is such a diamond way to lead is like we are going to. do what is best for our bank. if it encompasses elements of dei that we see as as beneficial for us, our shareholders, our employees, our stakeholders, we're going to do it. it may not fit into kind of your cliffsnotes version of what dei is, but we're going to do our own thing. >> as we go to break what shares. >> of. >> roku gaining on this smaller than expected loss. >> streaming households. >> nearly 90 million also a beat. but that said, just about a round trip for shares over the last year. still ahead, more on. >> a different earnings. >> name going in the opposite direction. that is coinbase. despite some of their very bullish qualitative commentary. bullish qualitative commentary. talking about those numbers -honey... -but the gains are pumping! dad, is mommy a "finance bro?" she switched careers to make money for your weddings.

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to the culling of more than 41 million chickens and sending prices flying up 53% since last year, according to january cpi report. joining us now to help distill all of this, pete and jerry is the ceo. tom and jerry is an organic and pasture raised egg producer. thank you for being here. can you help explain to us, for those of us who are not egg experts, we're maybe a consumers, but not in terms of the production. what are some of the key factors that influence the price of eggs right now? >> well good morning. >> thank you is unprecedented. it is purely a supply and demand play. if you think you mentioned 41 million birds being called, actually 20 million, about half of those in the past month. now that's affecting the cage and cage free providers, which are the more conventional eggs that you see in the in the well of your grocery store? typically the

less expensive eggs at 2 or $3 a dozen. as that supply has come out, prices have skyrocketed for those eggs. our eggs, pete and gerry's and nellie's are free range and pasture raised, so our birds get outside. cage free birds do not. and our eggs are actually the same price today to the retailer as they were a year ago. you're really seeing that inflation being driven by a big piece of the mix, which is cage and cage free, and that's that supply equation. the challenge has been as those birds have been culled, which is necessary to keep i from spreading. the hatcheries haven't been able to keep up, so they haven't been able to repopulate those barns as quickly as historically they have. the virus has just proven very resilient. it's the same h5n1 that was affecting us for over ten. it has been affecting us for over ten years, but it has continued to mutate and become harder and harder to, to really to snuff out. >> yeah. clearly it's back with

a vengeance here. i mentioned just, you know, the shortages that people are seeing in grocery stores. i'm curious if there's anything you can do to fill that void, or do you have essentially a supply? a finite supply of chickens that can provide the eggs. and therefore that's why you're kind of keeping prices the same. and it's just a matter of, you know, how quickly the rest of the producers can get back into normal, normal production levels. >> yeah, i think we're all doing the same thing. all the producers in the space are doing the same thing. we're trying to get new barns up and running as quickly as we can, because that demand is so great, especially for the more premium eggs. it just it takes time. i mean, you can't you can't make an egg any other way than putting on hens and feeding them and taking care of them and having them lay eggs. so that usually takes about a year to put a new barn on from start to finish. by the time you, you basically put an order in for the chicks and then

the barn is built and that that new barn is populated, it can be a year. so it's not that quick. it's not like other consumer products where you can just put on another shift or build another line. processing is not our bottleneck, it's purely supply. and that's the challenge that we're we're all up against right now. we're doing everything we can. but when that many birds get taken out again on the cage and cage free side, it's very difficult to keep up. and the biggest challenge we have right now is usually the virus would would go away in the summer and winter months, because that's not the migration period when it tends to spread. right now we're in that we're in the period where it should be quiet and we're still losing birds, which is making it very difficult to build up inventory and get back back in balance. >> tom, is there much seasonality in demand? is there a period coming up where we might get some relief on the demand side? >> yeah, that's a that's a great point. it does tend to start to slow down. and they call it post

easter month. months into the summer basically demand is driven by either people eating the eggs for meals, which that doesn't tend to have a seasonality to it, but also baking. baking is a huge component of demand. so it will start to ramp down demand in the end of may, june, july, august periods, and then we'll start to pick up again. as kids go back to school, people are back into their fall and winter rituals of baking. more more of that that will drive demand back up. so the hope is that we can get we can start to build some some inventory back up in that period of time, and we'll start to see prices moderate and come back down on those cage and cage free, which is really driving all of this that's going on. >> tom, you mentioned that, you know, avian flu has not calmed down at this point in the year, as you may have expected it to. what's your level of concern, though, about how much this can kind of proliferate from here? or are there other measures that

the industry is looking at to try to mitigate at this point? >> yeah, the well, we do we take a lot of biosecurity measures on our barns and our farms. we're spread across 15 states, so we're not subject to any one migration path, which could affect a particular group of, of farms. we put enhanced biosecurity in place. not a lot of people are coming on and off our farms, which is how the disease can spread. the more of that that gets done, the more the outbreaks will be limited. but that does not preclude wind based spread of the of the virus. the real challenge is that we really need to start thinking about some sort of a vaccine that will you can vaccinate the hens and that will prohibit the virus from finding a host where it can continue to mutate. and that will that's a way to get in front of it. but we're we don't have that vaccine developed. and there's a lot of parties that have to get behind that in order to make that happen. >> yeah, maybe an avian flu

version of operation warp speed. warp speed. we'll see. >> exactly, exactly. yep. >> tom. thank you. >> all right. thank you for your time. >> all right. we are watching shares of crypto exchange coinbase. earnings and revenue blew past expectations. executives citing the election of pro crypto president president trump and the expectation of regulatory clarity ahead as catalysts for increased activity in the quarter. but the stock under some pressure this morning, it is down 6.5%. ceo brian armstrong, comparing the industry to the early days of the internet. on the conference call take a listen. >> we like to say that on chain is the new online. it's a little bit like the early 2000, when every company had to figure out how to adapt to the internet. up to 10% of global gdp could be running on crypto rails by the end of this decade. >> all right. coinbase jumped 8% in yesterday's session, so that was ahead of the numbers following robinhood's report

that detailed a similar jump in crypto trading around the election and the stock getting four price target hikes this morning as it backs off below 280. >> let's get to news update this morning with silvana. hi, silvana. >> hey carl. good morning to you. vice president jd vance delivered a keynote speech at the munich security conference today. he called on europe to step up in russia's war in ukraine, but stopped short of clarifying u.s. policy about the conflict. he also criticized allies on censorship and mass migration. the vice president is expected to hold a meeting with ukrainian president volodymyr zelensky in just moments on the sidelines of the conference. meanwhile, ukraine says a drone armed with a warhead hit the outer protective shell of the chernobyl nuclear plant today. officials say the strike damaged the structure and briefly started a fire. ukraine blamed the attack on russia, but the kremlin denied any involvement. the international atomic energy agency says radiation levels at the plant have not increased

since the strike, and a spokesperson for hamas says the militant group will free three hostages on saturday. the release follows terms of the ceasefire deal. hamas and israel struck last month. the israeli prime minister's office also confirmed it has received the list of names. leslie, back to you. >> all right, savannah, thank you. still ahead. cybersecurity stocks outperforming since trump took office. why? the ceo of palo alto says there's more gains to come next. back in a moment. >> cnbc crypto world is sponsored by crypto.com. trusted by over 100 million users worldwide. >> as a financial advisor, you know, building a retirement plan. practice takes work. but it doesn't have to be all on you. capital group can streamline the job with a platform that helps you guide and grow clients more efficiently. because we know

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costs out. but over time, the only way to drive efficiency is through automation, right. you're doing repetitive tasks. you're getting systems in place. i think that will require better systems, better technology to deploy to the government. and when that begins to happen, it

is going to be cybersecurity. so i think there's going to be possibly a higher need for technology in delivering an efficient government than there is today. but i think it will take some time before everybody settles into their roles. they figured out to get the you know, they get the sort of get the easy stuff out of the way. then they have to figure out how to redo processes, how to redo automation. and that has to be done in a secure manner. so i think long term very, very hopeful short term time to settle down. >> as palo. >> alto's nikesh arora, bullish on the opportunity for cybersecurity companies under the trump white house, speaking with our sara eisen after the company posted that top and bottom line beat. catch more of that interview, by the way, next hour on money movers. in the meantime, our next guest says musk and doge offer the best chance in a generation to untangle the complex cables of government. let's bring in former white house chief information officer theresa payton, now fortalice solutions founder and ceo. theresa, thanks for the time. it's good to see

you again. >> good to see you as well. >> a lot of concerns obviously, this week about cutting any kind of government and what that means for people who rely on government services. but as far as cyber goes, you do think this is this is you're bullish on doge's prospects. >> i am. and we have some of the best tech and security talent working in government organizations today. but they're wasted. they're wasted on complex systems. some of the systems are also outdated. and we have to get out of this cycle that we're trapped in where we've got unnecessary complexity, obsolete systems. and if we simplify, improve and innovate the technology, it's going to be much easier to do cybersecurity. i've got a stat for you. i went and looked at the omb reports for 2022, and federal departments and agencies reported over 30,000 incidents in the fiscal year 2022, fiscal year 2023. they went up to over

32,000 incidents. if we were doing something right and didn't need to change, wouldn't that number be going down? it's going in the wrong direction, and doge is the best shot we have and improving the pace of acceleration we're on, which is successful cyber security incidents. >> is there is. do you think they should have free reign to poke and prod at in the process, or is there a limit to where their access should begin and end? >> i'm going to assume just having been sort of on the inside of the fishbowl, with everybody looking in from the outside, i'm going to assume that white house counsel, the office of management and budget, that everybody has gone over the types of authorities that doge should have either considered special government employees or contractors or whatever designation they've been given. and so they they are going to run the programs. they're going to run the processes and get to the root cause, just like an external contractor, consultant,

auditor would do, just as an inspector general would do. so whatever authorities they've been given, based on the roles that they've been placed in, i'm going to assume white house counsel has that all covered. so the access would be controlled and the reports and outcomes would be controlled and transparent. and candidly, i'd rather have doge have access than chinese nation states, russian nation states and iran nation states who, by the way, are part of those over 32,000 incidents that happened most recently to treasury. we know that we had nation state actors who were accessing information. i'd rather have doge in there telling us whether or not they see evidence of other, you know, potential downstream issues. we have got to get the complexity out of our technology if we want to be secure. >> but wouldn't the process of eliminating the complexity and having a wholesale rethink of how the government does cyber security and data management and everything else, be a little bit

more of a considered process where you would get congress involved and say, this is what we're going to need to spend to upgrade systems and then have a little more of a stepped out rollout. i think the concern here is that kind of looking for expense line items and things that that, that elon musk can post about what's going on in the government as opposed to, hey, we want to protect all the data and do things more, more efficiently. >> yeah, there is a concern. you know, i've heard people use sort of the analogy of we're taking a sledgehammer to other departments and agencies. and you know, what i would say if i were advising the team is, as you have your findings, you know, make sure you're putting them into different categories. so when it is time to look at the technology modernization efforts, that's what we have to look at next. and those modernization efforts need to look at how can we accelerate the timelines. i will tell you that oftentimes these technology projects get bogged down, mired down in overlapping regulations

and overlapping authorities and not knowing. is this something that our department and agency can do, or are we supposed to use something from another department and agency? we need to streamline the processes. you have these talented cios who oftentimes basically are have their hands tied behind their back trying to implement scalable technology at speed. we need better speed. we need better innovation. we've got a lot of the right talent in place. we just have to get the bureaucracy out of the way and but keep the pieces of the bureaucracy that help with data security, privacy of information for citizens. but right now we've got a mess. you know, it's sort of like if people want to picture at home, look at a cabling closet. we all know those cabling closets where it's just a mess of wires. nothing's labeled, nothing's organized, and you're just trying to get in there and do the best that you

can. when you have an outage, or you need to add something new to maybe your home wiring closet or at work. but if you walk into a clean cabling closet that's been streamlined, it makes it a lot easier to sunset retired equipment and put brand new equipment in. that's what doge needs to do, and it can be done in a way that is safe and secure in the process, right? >> yeah. we'll see if the if the country has its own av guy coming in to, to get that thing cleaned up. theresa. good conversation. please come back. theresa payton, former white house cio with fortalice. >> i'll come back anytime. thank you. >> all right. still to come. cnbc officially out with its nba team valuations for 2025. find out who took the top spot. we're back in three minutes. >> and.

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>> to. >> nba all star weekend tips off in san francisco this evening and just in time. cnbc sport is out with its inaugural rankings of the most valuable nba franchises. at number one, the golden state warriors, worth an astounding $9.4 billion, nearly $2 billion more than the knicks, who come in at number two. the los angeles lakers joined the club as well at number three, followed by the chicago bulls and the houston rockets to round out the top five. our senior sports reporter, mike ozanian, is the man behind all those rankings, and he joins us here at post nine to talk through it all. you're laughing. i just what's up with that with golden state. >> oh it's all about the building. you got to realize that when they built this

building, which they own, it was right around the time they were winning all those championships. steph curry, best guard in the league. tremendous sponsorship revenue. they have about $200 million more revenue than any other team in the league. and their sponsorship revenue is about double any other team. >> what do you make of the rest? any surprises as the list came together? >> you know, some of the ones in the middle really surprised me. one of the big ones, cleveland cavaliers. their revenue and value much more than i thought it was going to be. tremendous business success there. sponsorships. they're doing a great job. great job building. bringing in other non nba events to that arena. very high revenue for that market. >> do we have a good view as to maybe not top of the list, but most improved players or relative to a new owner getting in for example having made the most. >> well, i think what we're seeing is because of the new tv deal that kicks in next season, an average of $6.9 billion a

year, 160% higher than the current deal from team one through 30. they're all up a lot in value. in fact, if you look at what owners have paid versus what the teams are now. you go to the top of the list. golden state 24% annualized return in price versus the $450 million that was paid in 2010. go to the bottom of the list. the grizzlies right. never been to an nba championship. they're up 19% annualized since 2012. >> yeah. all boats floating on that. you know, of course i got to ask you about about the knicks. i got my knicks tie on here. but you pegged them at $7.5 billion. this is the rare team that's actually in a publicly traded stock, right? madison square garden sports. it's the knicks and the rangers, plus some other assets. total market cap is 5 billion. i know that's not going to match up. there's probably tax effects all this stuff. but that seems as if, you know, it's kind of like feeding off of the size of the

market and the and the historic value of it. but what else is playing into that? when you see the fact that the market is like not willing to pay it in terms of the stock, how does that play into the problem? >> i think a lot of it plays to the fact that the dolan family controls the stock, right? so it's very heavily insider controlled. you also have a mix of related assets with sphere, which actually owns the networks that broadcast the games. yeah. >> finally i'm thinking of lasry and the bucks. when you have people who did well then sold. i mean, what lessons come out of that? >> well, it's very funny. i was at a panel once when he shortly after he had gotten out of the bucks, he was talking about the fact that when he bought in at like $550 million, he said the team was more profitable than it was when he sold it, you know, for a much higher valuation. obviously, i think these teams do not sell on multiples of earnings. it's much closer to multiples of revenue. and look at the celtics. they're on the market right now. they're going to be sold. they don't have a great arena situation. the opposite of golden state right. the bruins their owners control

that building. but the celtics are going to go for a record sale price. the last highest value was 4 billion for the suns. this is going to easily surpass that. >> yeah remarkable figures there. great work mike. thanks for being here. thank you. appreciate it. and be sure to check out all the details on cnbc sport's nba valuations. be sure to go to cnbc.com. >> sport as we go to break check out the following mystery chart. it's an international name. it's a luxury name. it is beating the s&p over the last year and reported an end of year sales surge. we'll talk about who it surge. we'll talk about who it is and how it' i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models.

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granger for the ones who get it done. >> welcome back. that mystery chart heading into the break. hermes getting results. robert frank here with the details. >> robert leslie. >> good morning. good to see you. well, it's been a very mixed quarter for luxury hermes, though posting an 18% jump in sales that was better than the 11% expected. the big driver, of course, was leather goods. those famous birkin and kelly bags sales. they're up 22%. the us also strong, with the americas up 21%. europe got a big boost from tourists, mainly from the us. they're buying in france and

italy now. they don't break out china, but asia. ex-japan was positive. that was surprising, up 10%. ceo excel dumas saying, quote, in a more uncertain economic and geopolitical context, the solid performance of the results attests to the strength of the hermes model and the agility of the house's teams, who i want to thank warmly. the company, by the way, giving all employees a bonus of ■k74,500 because of these strong results. now, overall, china's weakness still a big drag on the luxury sector. problems at gucci, driving a 12% drop in sales at the owner carrying porsche, also cutting 2000 jobs in germany. they cited a 29% drop in ev demand in china. even hermes calling the outlook in china, quote, complicated for the year ahead. karl. >> robert, appreciate that. robert frank today. busy morning, of course. although muted movement in the indices. dow's down about 53 money movers

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santoli with leslie picker live from post nine at the new york stock exchange. hot inflation data, a higher ten year yield in the middle of the week and threats of tariffs not enough to stop the bullish sentiment on wall street. the s&p hovering near an all time high. we'll look at what could be the next big catalyst as earnings season begins to wind down. >> plus, palo alto ceo nikesh arora. the stock moving lower despite a beat on earnings and a stronger than expected outlook. we'll get his outlook for the cyberspace and the company's plan to capitalize on the ai boom. >> and republicans are setting the wheels in motion to gut some of former president biden's regulations, specifically the energy and banking industry right now. take a look at markets pretty steady open for the s&p 500. it's up about one tenth of 1% right in the vicinity of a closing high from a few weeks ago. dow is basically flat. you saw we had a actual weak retail sales report for january. bond yields down in respon