>> it was. >> the passion around what we were doing. >> that really, for. >> me, neutralized the notion of gender, which is why i like to say passion is a gender neutralizing force. >> to me, ambition. >> is being undaunted by the impossible. >> i've been really lucky to work at two companies. >> google and yahoo. that really fundamentally changed the world. >> it is 5. >> a.m. here at cnbc. global headquarters. welcome to worldwide exchange. >> here is your five. >> at five. records at risk. >> fed inaction. >> and tariff uncertainty. >> putting some fresh pressure. >> on wall. >> street d.o.j. dividend. president trump. weighs a. >> new. >> form of direct payments to. >> taxpayers. >> courtesy of. >> his. >> federal cost cutting efforts. >> tariff and. >> spending threats hitting the. >> pharma sector hard. >> we take. >> a look at top picks. >> and. >> the outlook. but plus much more on the defense. >> sector shocker. >> that sent. >> shares of palantir. >> sinking and the walmart wildcard. >> that could lift the. >> stock even higher when it reports its. >> earnings later today. >> it is thursday, february the 20th, 2025. >> and you're. watching worldwide. >> exchange right here.

>> on cnbc. good morning. thanks so. >> much for being here. >> with us. i am frank collins. >> get you ready. >> for. >> the trading day ahead. we begin. >> with the s&p and the nasdaq. >> 100 both. >> coming off fresh record. >> highs once again. the nxt also on a. >> five. day win streak. >> take a look at futures though. >> you see in the. >> red. >> across the board the. >> s&p the. >> nasdaq down about a. >> quarter of a percent. >> the dow. >> actually down fraction right now. looking like. >> it would open up just. >> about 70 points lower. >> right now. going to take a look at the s&p. >> premarket laggards. >> taking a look. you see. >> right. >> here at the. >> top of the list. smurfit westrock the. >> biggest packaging. >> company in the world. though shares. >> down double digits. >> followed by. >> builders firstsource. >> invitation homes hotels. >> and axon enterprise. >> axon enterprise falling after earnings. and then. >> the other side of the coin, the s&p. >> 500 gainers. >> taking a look at those top five nordson right here at the top of the list, those shares up almost 4%, followed by microchip tech, nxp semiconductors, pool corp. >> and.

>> also biotech. ticker tech. >> pretty good ticker. >> right there. >> all right. right now we want to do a. >> quick check of. >> defense stocks. >> after the pentagon. >> confirmed yesterday. >> the trump. administration is looking to cut as. >> much as. >> 8% from the defense budget in. >> each of the next five years. >> taking a. >> look at some. >> of the stocks. >> potentially impacted. >> by. >> this palantir. >> those shares. >> down 1.25% right now. yesterday the. >> stock fell double digits. >> that company seeing its government segment grow more than 40% over the last. two quarters. and taking a look at the rest of the moves here, we're seeing l3 harris. >> those shares actually moving up just. >> about 1%. >> lockheed martin, raytheon and northrop grumman. >> all of. them in. the red. >> northrop grumman essentially flat though right now. >> we're going to hear. >> much. >> more about this when cnbc, cnbc. >> speaks with the ceo of lockheed martin. at 2:45 p.m. eastern time. that's coming up. later today on cnbc exclusive. >> we want to. >> turn to the treasury market. >> bond yields. moving just a bit lower. after the release of fed minutes yesterday. >> seen as. >> hawkish with all fomc members voting for a pause. we're seeing the benchmark. >> right. >> now at. >> 4.52% and. >> a quick check of. >> the energy sector. we want to

start off with oil as we always do. take a look at. >> the moves. >> in oil. >> oil moving very. >> fractionally higher wti. >> crude up fractionally. >> brant crude. >> up. >> fractionally as well. >> the important thing here is. >> both are above key sentiment levels. >> of 70. >> bucks a barrel for wti. >> and 75. >> for brant crude. >> a lot more action when it comes to natural. >> gas pulling back about. >> 2% right now. >> but yesterday had its. >> highest settle in about. >> two years. >> big spike. >> in natural. gas prices yesterday. >> okay. that is your set up. now let's see how europe is shaping up as its trading day gets underway. our julianna tatelbaum is live in london. >> with a. >> look. >> at the early action. >> julianna. >> good morning. >> hey, frank. great to see you. well, we've had a bit of a divergence in fortunes between the us and europe the last couple of days. yesterday, when wall street saw gains, europe actually pulled back. it was the worst performance of the year for the main benchmark in europe yesterday, driven by a pretty sizable pullback in the german market, which has been an extraordinary performer year to date. but we did see a 1.8% pullback in the dax yesterday. now on to today's trade. the divergence continues but in the reverse direction. so european

equities are actually trading higher while u.s. futures point lower as you just outlined. so you've got the xetra dax up about 6/10 of a percent today. the cac40 in france up about 7/10. footsie also trading higher in italy. well we've got just a little bit of red on the board from the uk market when you break it down by sector. we are seeing strong demand for basic resources today. that basket of stocks up about 1.5%. insurance, real estate, industrials. on the downside the laggards in focus. we have got healthcare oil and gas and media. but as you can see just three sectors in the red. so the majority of stocks are trading higher. the narrative yesterday was seeming to be about reaction to tuesday night's trump threats, tariff threats from president trump. now investors seem to be looking through the potential for those new tariffs on auto, semiconductors, pharma, etc. and putting some money back to work in the market. frank. >> julianna, thank you very much. julianna tetelbaum live in our london newsroom. >> turn our attention. >> now. to washington. >> and president trump giving investors. >> plenty to sift. >> through this morning.

>> from new tariff threats. >> to doubling down on. >> the doge agenda. our silvana. >> henao is here with that. >> and much more. >> silvana. >> good morning. >> hey, frank. good morning. that is right. there is plenty to talk about. now, speaking during an investment summit hosted by saudi arabia's sovereign wealth fund in miami and then again aboard air force one last night, president trump suggested passing along savings from his federal cost cutting efforts right to the taxpayers. listen in. >> there's even under consideration a new concept where we give 20% of the doge savings to american citizens and 20% goes to paying down debt, because the numbers are incredible. >> now, that idea was first floated by a user on x who called it a doge dividend, sending taxpayer refund checks totaling $5,000 each, a comment to which elon musk said he would check with the president. now the president also looking at trade, telling reporters it would be, quote, possible to reach a new deal with china without describing any

parameters of a potential deal. now, trump also weighing the idea of adding lumber and forest products to a previously announced list of import duties on cars, chips and drugs from overseas. >> forest. >> forest products. yeah. >> do you have a rate in mind. >> for that? >> we're thinking. about maybe 25%. >> would that. >> also be. >> in. >> the second. >> in that vicinity? yeah, a little bit later. >> and then there's boeing. trump re-airing his grievances with the company over its much delayed, updated air force one. the president saying he might have to go a different route, not airbus, but perhaps buying a. perhaps buying and refitting a used plane. frank. >> a lot of developments there, a lot. >> of things. >> going on. oh yeah. >> savannah, thank you. very much. >> see you a bit. >> later in the show. >> all right. turn our attention back to the markets. >> stocks are sitting at. >> or. >> near all time highs. >> as the markets largely just shrug. >> off. >> president trump's talk.

>> of more tariffs. and they focus on. >> data and the earnings. >> and as we wind our way through the end of earnings. >> season, investors are already. >> looking ahead to q1. our bob pisani. >> notes that earnings. >> estimates are coming down faster than usual. >> earnings growth is now. expected to be. >> up 8.5%. >> compared to the previous estimates of roughly 12%. one potential bad sign a lack of big upward. >> revisions from the. magnificent seven. >> that's the. >> trend that pisani. >> says puts a whole lot of pressure on the. >> other 493. >> stocks in the s&p. >> for earnings growth. >> joining me now. >> is drew. >> matus. chief market. >> strategist at metlife. >> investment management. >> drew good morning. thanks for joining us. >> good morning. >> i want to talk about. >> that right there. >> our bob pisani. >> noting that. >> we're not. >> seeing upward. >> revisions from the mag. >> seven in your mind. >> is that. >> concerning when we're looking at. >> this market. >> i also want to. >> note if you look from. >> the start of this year, the. >> s&p equal. weight and the. >> regular market cap weighted. >> s&p trading just. >> about neck and neck. >> i actually think it would. >> be healthy to. >> see a rotation. >> into kind. >> of letting the. >> other 493 pull. >> their own weight, right. and whenever you have the. concentration that we've had in. >> equities, anything that's. >> highly concentrated. >> is unstable. >> and so.

>> if you see the if you see the growth broaden out and you see the other 493 begin to kind. >> of contribute. >> more. >> that will be a sign that the economy is healthier. but aren't. >> we already seeing that. aren't we already seeing. >> the rotation into those. other stocks? >> that's why. we're seeing. >> this kind of. >> performance from the. >> equal weight up about. >> four and a quarter. >> while. >> the market cap weighted index is about. >> four and a half. >> well. >> you are. and i. >> think, you know, what's important to think about is. >> kind of the backdrop. >> for it all. and you. >> know, we have an environment. >> where there's slightly higher inflation, which is actually pretty good for. >> companies. >> right. a little bit higher. inflation if they can. >> pass it along. >> if they can. >> pass it along, but they seem to be able to pass it along. >> because. >> we're seeing that in the inflation data itself. >> and the overall growth numbers look. >> pretty good. and people are actually still. reasonably optimistic. right. if you look at the. >> economic surveys, the consumer is. >> starting to actually look a little quirky. >> but things like small business owners are. >> incredibly optimistic. >> we're going to get a read on consumer coming up later. >> today with. >> walmart earnings. i want to. >> talk about the fed minutes yesterday. >> markets closed higher after those fed minutes that. >> a lot. >> of people saw. >> as hawkish. they didn't tell

us anything we didn't really know. i mean except for the fact that. all fomc members voted. >> for a pause. >> was there anything in there that you thought. >> was notable. >> for investors. >> that they should. >> pay attention to when. making decisions going forward? >> well. >> you know. >> i think. >> it was interesting to compare the minutes to the humphrey-hawkins testimony because in the humphrey-hawkins testimony, you know, jerome powell was saying, for example, with quantitative tightening, the. >> shrinking of the fed's. >> balance sheet. we still have a long ways. >> to. >> go, which means that there's still a lot more treasury selling to take place. >> and when. >> we. >> look at the minutes, you know, they're talking about a. potentially pausing. ahead of kind of a the debt ceiling issue. so, you know. >> it's. >> kind. >> of interesting to see. >> the bond market reaction to that, because i would have. put more emphasis on the fact of. >> the from the humphrey-hawkins testimony. >> that, you know, potentially. >> that the. >> balance. >> sheet has. >> to shrink a lot. more and that would put up. >> more upward. >> pressure on yields. >> just so everybody is. >> clear. >> you're talking about jay powell's. testimony on capitol hill. >> yes. >> not as often. called the humphrey-hawkins. >> but. >> you know, some of our older school viewers might. >> know some of our newer ones. >> may not know. well.

>> i tend to be a little old school. >> and that's okay. >> speaking of. >> old. school and old. >> money, you work for an insurance company. obviously you have. you have a lot. >> of. >> money on the. >> balance sheet. >> when we're looking at. >> tariffs, it's been a near term disruption. >> but for. >> a longer term investor who a lot. >> of our audience is are. longer term investors. >> these tariffs. >> what do they mean to you and your investing thesis. are there certain areas of the market that you're more concerned about or they're more. >> areas. >> of the market that you're. bullish with? >> the idea that this president. >> is engaging with? a lot of people. >> call a trade war. >> but certainly a. >> very. >> aggressive tariff strategy. well, so first and foremost. >> i'd say the inflation impact. of tariffs. >> tends to be overthought and overdone. right. >> if you if you think about long term. >> so over the course of a ten year u.s. treasury security, for example. >> you have a ten year inflation expectation. >> over that time period. what tariffs. >> do is they do a one. >> time price adjustment. >> so they change where the curve is. but they don't change the slope of the curve on inflation. so if you think about it from you know you have 3% inflation over ten years. and then one of those. years becomes 4% because of tariffs. >> well that's only. >> ten basis points over a ten year period. so it's not.

>> really all. >> that much. >> to get right. >> so not a big deal. but is there a sector that at. least in the near to medium term that makes you concerned? i know you're more of a. >> longer term investor. >> when you're managing. >> money. >> but in the near to medium. >> term, is there one. >> sector that makes you very. >> concerned about. >> i mean, there's some we like i mean. >> you know, when i. >> think about kind of different. >> sectors. >> i think financials look, look. >> really good. >> you know banks because they can take advantage of the inflation story. they can take advantage of the yield curve story. and of course if the economy continues to do fine you know they're in pretty good shape there. >> all right. >> with markets at all time highs i think everybody's just looking for an idea somewhere. >> to put money. drew mattis great. >> to have you back on the show. i haven't been. >> on in a few years. >> great to. >> have you back. thank you. >> all right. we got a lot more to come here on worldwide exchange, including why one fund. >> manager is taking a page. >> and a stock. >> play from. >> warren buffett's playbook. >> but first. >> digging into. >> what could be a sector bargain as. >> pharma comes. >> under fresh pressure. >> from the white house. >> plus, much. >> more. >> on the doge dividend. what it. could mean for budget hawks and for investors. >> and later, the. one unsuspecting. >> area of the.

>> market that could be. >> the key to. >> walmart's next move. >> walmart's next move. >> so a (vo) sail through the heart of historic cities and unforgettable scenery with viking. unpack once, and get closer to iconic landmarks, local life, and cultural treasures. because when you experience europe on a viking longship, you'll spend less time getting there and more time being there. viking. exploring the world in comfort. to fit all calf sizes effortlessly. >> they're easy. >> to put on. >> easy to take off, and provide. unmatched all day comfort. visit vox.com to learn more. >> and with ai. >> we can look. >> at so much more than sales data. >> see that? >> predictive analytics. >> how long have.

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>> tuesday's fast money. carter worth making the. >> case. >> the pharmaceuticals that could be quote unquote deep value play. >> we know that the sub industry group, s&p 500 pharmaceuticals. >> is. >> the big three. that would be of course, pfizer merck, lilly. but you've also got bristol-myers j&j. what's interesting is that the relative performance of this group to the market is at 30 year lows. i mean, it's incredible with. >> all of the heavy. >> lifting that. >> lilly has done. so the question is, is this sort of deep value or is it a. >> contrarian bet? >> my hunch is yes. an overweight here makes sense. >> for much more on this, let's bring in emily field. >> head of. >> european pharmaceutical equity. >> research at barclays. emily, good morning. >> good to see you. >> hi. thanks for having me. >> can we start. >> off with what. >> we're hearing from carter worth? do you think the. >> pharmaceutical sector. >> is it a quote unquote, deep value play? you know, i don't know how you exactly explain the. >> parameters there. >> but do. >> you think this is. >> a value trade right now? at least? >> so we actually. >> think that pharma is. >> probably not.

>> set up. >> to. >> underperform the market, at least in the first half of this year. on the european side. you know, with novo being the big name over here. we downgraded european pharma to neutral actually back in january. and the reason for that was twofold. one, i think look. >> rfk junior just. >> got in charge of hhs. he was confirmed. and so i think, you know, from a health care policy perspective, there's a lot of open questions. he just said yesterday that they're going to have a hearing on childhood vaccines. what does this mean for vaccines players? we don't know. i think that. >> people have. >> largely brushed off the tariff news, which is a positive for the sector. >> these companies have very, very high. >> gross margins. >> but the. >> other open question. is how do the obesity names fare. >> this year? >> novo has actually had a really. >> tough year year. >> to date. lilly's done well. so i think still a lot. >> of questions. >> on obesity as we get into 2025. >> well. >> emily, let me ask you. i mean we got to talk. about tariffs. the sector is shaking off the. >> tariff threat. >> i mean a. >> 25% tariffs on 20%. >> tariffs on pharmaceuticals. >> being imported that could. >> go even. higher according. >> to. >> what the. >> president said. >> how can you just shake that

off? one of the big issues here in the us is the. >> problem with high drug prices. >> this could. >> only. >> add to those prices, right? >> yeah. >> i think. >> part of it is due to the fact that, you know, gross margin for these companies can be like 85, 80 plus percent. >> and then, you. >> know, in terms of the mechanics of how these tariffs. are going to actually work, like novo nordisk, for example, they make the chemicals that go into semaglutide in denmark, but they do a lot of the. putting the drug into the. pens in the us. so how much of that is actually going to have. >> a. >> tariff on it? it's still kind of a big open question, but i think that, you know. >> manufacturing costs. >> are generally pretty, pretty low for these companies. so. >> i. >> mean. >> i. >> was a little nervous yesterday to see if these stocks were going to react, but they actually just traded pretty. >> in line. >> all right. i just want to bottom line this. >> so you think the drugmakers they're going to absorb the additional cost of. >> the tariffs. >> yeah. i think that it will be very very manageable for them. and actually you know we're getting. >> to the tail end of earnings. >> didn't really come up much on on calls over this quarter. >> all right. very interesting. >> well, speaking. >> of novo. >> nordisk that you were just

talking. >> about right now, i want. >> to bring in our angelica peebles. she sat. >> down with eli lilly's. >> chief scientific officer to get his take on what's next. >> for weight loss. >> and. >> of course, for lilly angelica. good morning. good to see you. >> good morning. >> frank. >> yeah, i had to ask lilly's top scientists, dan skovronsky, about the debate people are having right now around what it will take for new obesity drugs to compete with lilly's and novo wegovy. he sees two main opportunities. drugs that are easier to use, like pills and medicines that make people lose more weight. now, on the second point, the other debate. people are having is how much weight loss do we. >> really need to. >> see on top of what the current drugs have? so delivers more than 20%, a number that he sees benefiting the most people. more potent drugs like lilly's own tide might bring that up to 25% or more, but he sees that market being smaller. so what's the most excited or what's he most excited about in obesity? he wants to see what other health conditions glp one can treat. >> this is probably been the

most amazing thing i've seen. >> in my lifetime. >> as a scientist and a physician. >> just the multitude of different. diseases that. >> could potentially benefit. the way we're learning about this is mainly from patients telling us. >> i've been. >> on your. >> drug. and i've. >> seen this benefit. that was surprising. >> outside of obesity, skovronsky wants to take advantage of lilly's success to take the big swings things like alzheimer's prevention, als, chronic pain and hearing loss. and lilly is investing. >> heavily in. >> gene therapy, while other companies are just passing on that space. and a company like lilly can make these bets. >> its market. >> cap is around $820 billion. and only five years ago it was 120 billion. >> right now, at least. >> the biggest health care company in the world. probably the biggest health care company in the world ever. we have an obligation. investors have given us that vote of confidence. we see that as an obligation to invest. in some of these. big problems that are hiding in plain sight, to try and make a

difference for the health. >> of humanity. >> now we'll. >> have to see if these bets pay off. and if lilly's investors are actually on board with that plan. and you can get more from my interview on cnbc.com later today. >> frank. angelica, thank you very much. we want to bring emily. >> field back. >> into the conversation. emily i. want to get your. >> reaction to some of angelica's reporting. >> well yeah i mean the. >> points that that. >> she brought up and. >> also in her interview. >> with dan. >> are exactly. >> two of the biggest thing that healthcare investors are going to be watching. the first one is on pills, right. >> so these. >> weight loss drugs today are a once a week injection. lilly's next generation pill, it's called we're going to be finding out results. pivotal results for both type two diabetes and obesity in the summer and in the fall. and so that will be very insightful in terms of how big can pills be. and then the second point, you know, they're going to have. >> to. >> treat more than just weight loss to get particularly insurers. >> in. >> the united states to pay. >> for them. >> we know they're very expensive. and the second big, big thing on on the catalyst

watch for investors is going to be the first trial in alzheimer's. that's a trial for novo nordisk. it's called evoke. and we're expecting to see that in the second half. >> of this year. >> emily field, angelica peebles, great to have you both here. thank you both very much. >> thank you. >> all right. turning now to a check of shares of novartis. novartis is pledging $7.5 million to a new initiative from nonprofit prostate cancer. called blitz the barriers. the goal is to raise awareness and encourage. >> early. >> testing for the. >> most. >> vulnerable communities. black men are 75% more likely to have prostate cancer. spread to other parts of their body before. >> being diagnosed. >> veterans are twice as likely to be diagnosed with prostate cancer. an estimated 35,000 men will die from prostate cancer this year. we spoke with the global ambassador of prostate cancer. matthew knowles, the father of superstar beyonce, about this new effort. >> look, brother, you do. >> want to. >> live, right? >> and early detection. >> is what will. >> save you. you know the stages. >> of cancer. one, two, three,

four. >> you find. >> it early. >> you have a 99%. >> chance of survival. >> and i would want you to get. >> a psa exam. >> and a psa exam is a test for prostate cancer. the initiative is also trying to break through misinformation about that exam. that can now be done by simply drawing blood without any invasive procedures. all right. still on deck here on worldwide exchange, the china deep sea rally, facing a critical test from alibaba, reports before the opening bell. as investors, they look to see if management can justify its massive move higher. we are back right after this break. >> stay with us. >> buying a car is kind of a. >> big deal. >> there's like a million options and you deserve something you love. >> at cargurus.

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>> time, get up. >> to 54%. >> off with. >> our special. >> tv offer. >> call or go to doctor. >> marty.com forward tv. >> and welcome back to worldwide exchange. time now for your big money movers. >> three big. >> stock stories of this morning. >> we're going to start off with shares of software maker. >> klaviyo, under. >> pressure ahead of the open. after initially surging on the back of quarterly results that beat estimates. you can see shares are down just about 5% right now. full year revenue guidance also came in ahead of the street's expectations. shares of carvana also lower despite topping q4 earnings and sales estimates. shares of carvana down more than 8.5%. the company also guiding for a,

quote, strong year in 2025. the stock may be lower this morning, but it's. >> up roughly. >> 450% over the. >> last year. >> and alibaba facing a key test when it reports quarterly results later today after the deep sea rally, added more than 110 billion to its market value in recent weeks. you see shares right now, they're down just about 1%. however, shares are up 60% from their january low on optimism and a new apple partnership. but overbought overhangs and a still weak chinese consumer they could be too much to overcome. we're going to find out coming up at 6:45 a.m. eastern time today. all right. >> coming up here on worldwide. >> exchange, another quantum stock boost courtesy of microsoft. we'll tell. >> you how. >> when worldwide exchange returns. taking a quick check of those stocks right now, you can see in the pre-market a lot of them are up big. d-wave quantum computer quantum inc up almost 8%. rigetti up over 8.5%. stay with us. coming back. >> right. >> after this. >> the number of. public companies is shrinking. >> while the. >> number of private companies is increasing. at franklin

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>> it's more. entertaining than any other morning show, but. >> you might get some. >> useful information. >> squawk box weekday mornings, 6 a.m. eastern. >> cnbc get invested. 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 savings and soon go dave's been very excited about saving big with the comcast business 5-year price lock guarantee. five years? -five years. and he's not alone. -high five. it's five years of reliable gig speed internet.

five years of advanced securit. five years of a great rate that won't change. it's back. but only for a limited time. high five. five years? -nope. comcast business 5-year price lock guarantee. powering five years of savings. powering possibilities. comcast business. >> 687 6099. >> we're ending trillions of dollars in waste and it will mean much lower inflation, lower interest rates, lower payments on mortgages, credit cards, car loans, and much higher stock markets. i think the stock market's going to be great. in other words, we will rapidly grow our economy by dramatically shrinking the federal government that we have to do it. >> that was president trump speaking. >> yesterday, touting his. administration's war on. >> government waste and debt. that strategy now apparently

involving handing out d.o.j. savings directly to american taxpayers. welcome back to worldwide exchange. i'm frank colin. >> coming up this half an hour. >> we're going to dig into the president's laundry list of agenda initiatives. and which one of those are which? some of those could actually become a reality. >> a lot to. >> sift through. we're going to get through it. but first we begin with the s&p and the nasdaq. 100 coming off. fresh record highs. once again. the index also on a five day win streak. take a look at futures. right now though you can see they're in the red across the board. all three indices down fractionally off their lows of earlier. the dow looks like it would open about 60 points lower or so. >> right now. >> we take a quick check of nasdaq 100 pre-market laggards right here at the top of the list. palantir. we've been talking about this stock. we're going to dig into it more in just a bit followed by enterprise holdings intel giving back some recent gains falling about 1.5%. old dominion freight lines, one of the biggest ltl truckers in the u.s, also falling by 1.5%, and then the nasdaq 100 gainers. the other side of the coin taking a look, we see nxp semiconductors leading the list up here. about 2.25%. all top five of the

leaders in the nasdaq 100 chip stocks seeing a bit of a chip rebound after some recent pressure. and now for a check of defense stocks. if the pentagon confirmed yesterday, the trump administration is looking to cut as much as 8% from the defense budget in each of the next five years. remember. >> we. >> were talking about palantir shares, palantir shares falling double digits yesterday on that news. the company seeing its government segment grow more than 40% over the past two quarters. as you can see right now, shares down just about 2% l3 harris technologies, those shares up just about 1%. but the rest of these defense stocks under a bit of pressure in all fairness. northrop grumman basically flat down very fractionally right now. and we're going to hear much more about this when cnbc speaks with the. ceo of lockheed martin at 2:45 p.m. eastern time later today, it's a cnbc exclusive. want to turn to the treasury market? bond yields moving just a bit lower after the release of fed minutes that many really consider hawkish, with all fomc members voting for a pause looking at the benchmark 4.52 yield again, falling just a few basis points from the level that we saw yesterday. and a quick

check of the energy sector. taking a look at oil this morning. oil a bit of a mixed picture. just fractional moves to the downside for wti a fractional move to the upside for brant crude natural gas a lot more action going on there. natural gas falling almost 3% yesterday. it's had its highest settle in two years. it's actually been higher over the last seven days okay. that is your setup. now we want to turn back to a lot of these moves being made by the president. >> do you remember. >> getting a stimulus check. signed by president trump in 2020 during the heart of the pandemic? well, you could be in line for a similar type of payout from the us government, courtesy of the department of government efficiency. the president says he likes the idea of giving some of the savings created by doge back to americans as a kind of dividend. it's a plan that was actually suggested to and floated by elon musk on x. trump spoke about the idea last night at the saudi investment conference in miami. >> that curbing inflation and saving taxpayers billions and billions of dollars every single day. and there's even under

consideration a new concept where we give 20% of the doge savings to american citizens and 20% goes to paying down debt, because the numbers are incredible. elon. >> let's talk much more about. >> this now with romina boccia, director of budget and entitlement policy at the cato institute. good morning. thanks for joining us. >> good morning. >> i want to get your reaction. >> the idea of these quote unquote doge dividend payments to taxpayers. how do you view that, especially for a country that is running a budget deficit? >> if we. >> got another round of. >> stimulus checks. >> it's quite likely that it could. >> cause an uptick. >> in inflation. >> which is. something that the president. has said he wants to fight. >> instead, right. >> now we're having. >> this debate. >> about how to extend the 2017. >> trump tax cuts. >> so one way that doge can actually. >> help lock. in lower taxes for. >> the american. >> people is by. >> reducing the deficit and debt. >> which is close. >> to. >> $2 trillion annually. >> okay. >> so in part, i think this also demonstrates that the president

maybe. >> thinks that the american. >> people don't appreciate debt. >> reduction enough. so to get them. >> to. >> support the doge. >> effort, which has been. coming under fire. >> quite a bit. >> these payments seem like. >> a way to. >> to. >> try and buy that support. >> so just to be clear, it sounds like you don't think it's a good idea. i know you seem to be strictly sticking to the numbers, but do you have an opinion? i mean, do you think this is a good idea? it doesn't sound like it because you said. you said it might actually. okay, a lot of clarity there. >> yeah. >> no, no. >> not at all. >> i think that we should be. >> reducing the deficit. >> and debt. which is crowding. >> out private sector investment. >> the best. >> way that. >> the president. >> can put more money. >> into the pockets. >> of the american. >> people is by boosting. economic growth, which means lowering. >> our deficit. >> and debt. >> adopting a long term, credible fiscal. >> framework that. >> is sustainable. which will reassure. >> us bondholders, and. >> reducing regulations. so the united. >> states can build more, especially in. >> tech and i.

>> all right. so you're you're talking about tax cuts quite a bit. i want to play some sound bite from president trump talking about tax cuts. and get your reaction to that. >> i'll be working with the republican congress to pass the largest tax cuts in american history. and that includes obviously. yeah, that includes we have to extend the trump tax cuts, which were until now the largest. we're going to dramatically cut taxes for families and for workers and for companies, including no tax on tips and hopefully no tax on social security and no tax on overtime. >> i want to get your reaction on. one of the key things is that these tax cuts, they need to be offset by something else. i mean, when we're talking about this level of tax cuts and the trump tax cuts being extended in your mind, what does that mean for the for the us budget? and also some of the deficit concerns that so many americans have right now? >> yeah. >> those are the exact. >> conversations that are happening in congress. >> right now. >> as the house budget committee has. passed a reconciliation.

>> bill through committee. >> that will. >> likely soon. >> come to the. >> floor and then would have to. >> make its way through. >> the senate in this. >> bill. >> they would allow for $4.5 trillion in revenue reductions to offset the tax cuts. but they would also offset about $2 trillion. so less than half of those tax cuts with spending reductions. and this is where the hiccup is happening. what can congress cut. where is there enough political support. they're talking. >> about medicare. >> reductions, potential reductions to other welfare spending. but they're also constrained in the. reconciliation process, which allows them to rely on a simple majority vote in the senate. so theoretically, republicans could carry both the tax cuts and spending reductions on their own. >> so, romina. >> one last question. we got to get to very quickly, you wrote an op ed in the. hill about the plan for the us to have a sovereign wealth fund. i want to get your your take on that. important to note that the president was speaking at an

event sponsored by the saudi sovereign wealth fund. >> that's right. i think. >> a sovereign wealth fund for the united states is also. >> a bad idea. >> in this case, it seems to me like a shiny object with no legitimate function or purpose in the united states context, as you pointed out, we are running massive deficits. so what exactly is the united states. >> supposed to. >> be investing in such a fund? and then i'm also very concerned about the potential for political interference. >> using a. >> fund that could potentially. be within the control of an. independent board, or perhaps even the executive to direct us investments towards political purposes and to influence other countries and companies to align with the government's policy. >> all right, romina boccia, i don't think it'll be the last time we talk about that topic, the possibility of a u.s. sovereign wealth fund. great to have you here. thank you for your time and for your insight. >> thanks for having me. >> all right. we got a quick market flash for you now on tesla reports. >> across the. >> wires this morning that the

company is aiming to start sales in india in the third quarter of this year. you can see tesla shares up just about a half a percent. this follows reports yesterday the company has picked locations for two showrooms in delhi and mumbai. again, shares of tesla up just about a half a percent. all right. >> coming up here. >> on worldwide exchange, some fresh optimism on one of the most important stocks in the market ahead of its next big test. i'm looking at shares of nvidia right now up fractionally. we have the full details coming up next. stay with us. >> buying a car is kind of a big deal. >> but you use the cargurus app. >> that's a price drop alert. so the deals come to you. oops. >> big deals. >> right when you need them. car gurus download the app today. >> high point university. the premier life skills university is. >> ranked the number. >> one best run college in america by the princeton review. employers value hpa's. real world preparation. students love unprecedented access to global

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>> all right. >> welcome back to worldwide exchange. time now for your morning call sheet. we start with keybanc raising its price target on nvidia. ahead of its results next week, going from. >> 180 to $190. >> keybanc says it expects the chip maker to report strong q4 results and offer strong guidance for the current quarter. citi upgrading its rating and price target on nxp semi, moving it to a buy and 290 per share. citi says it believes a recovery around analog is coming, and that nxp was going to be a big benefactor of that rebound. and jefferies upgrading its rating on roku to a hole. jefferies says better days are ahead for the company, citing its outperformance in q4 and strong guidance for the current quarter. still to come here on worldwide exchange, we have the one word that every investor needs to hear today and the stock pick that every investor needs to know. plus, walmart set to report results in just under 90 minutes. the unique position. our next guest says the retail giant finds itself in among its competition. shares of walmart actually pulling back in the premarket down about a half a premarket down about a half a percent. much more at morgan stanley, old school hard work

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university. >> advanced stage liver cancer is often terminal. it is a deadly disease, but there are new treatments on the horizon that could dramatically prolong the lives of those with liver cancer. meat can fight biopharma on the nyse stock symbol can fight biopharma is now in a pivotal phase three clinical trial with its innovative new drug for advanced stage liver cancer, secured fast track and orphan drug designation from the fda and ema can fight biopharma stock symbol tanf. >> welcome back to worldwide exchange. we're counting down to walmart earnings for its all important holiday quarter coming out before the opening bell this morning. the stock's up about 20% since its last report, far outpacing the xrt retail etf. over that same time. walmart hit an all time high last week. this report seen as a key barometer for the consumer. and it comes following the much weaker than expected january retail sales report last friday. and that hotter than expected january cpi report. walmart also the top grocery chain here in the us.

joining me now is zach johnson chief investment officer at stack financial management. zach good morning. good to see you. >> hey good morning. good to see. >> you as well. >> all right. so we're talking about any retailer whether it's grocery apparel etc. same store sales key metric. >> the estimate is for 4.6%. >> growth in same store sales. you agree with that estimate. but what does that really mean. >> when it comes to this company. >> yeah. great question. >> it's going to be a slight. decline from last quarter. >> but it really indicates that walmart continues to really hit on all cylinders. >> and as you stated i think. >> we saw a strong holiday season. so we anticipate that this is going to be another solid quarter. but you know, the most important. thing out of this report for us is. >> what's going to happen. in 2025. >> what's the outlook for walmart from management's. >> commentary as. >> they look forward to? well, we kind of see is a very stretched and a very stressed consumer going forward. >> all right. so you think the consumer is stressed and stretched. a lot of people are saying that i want to go back to something that the ceo, doug mcmillon, said last quarter. he said 75% of the market share

gains that walmart has made came. >> from households making over 100,000. now that number. whether it's a lot of money or a little money. >> depends where you live. here in the new york area, you know, that's more middle class. but in. >> other parts of. >> the country, that's a whole lot of money. what does that mean for this company going forward and is that sustainable? do you do you see consumers continuing to go from other outlets. >> going over. >> to walmart and making their purchases there? >> you know, it really. >> took it took. inflation skyrocketing to send. >> the $100,000 plus consumer to walmart. >> and. >> historically we really. >> saw that. >> and consumer the higher end consumer only go to walmart during recessionary scenarios. but this time it took inflation. and what's interesting is now you once they're there, they have a much higher impression of walmart than they used to. in fact, about 40% plus have a very positive impression of walmart. and you're seeing a 90% renewal rate on walmart plus. and so this is indicative of how much money this company has spent.

>> in a. >> capex standpoint of looking to improve themselves and make themselves more attractive to that high end consumer. and so i think going forward, what what you're seeing is the combination of inflation remaining stubborn, combination of a consumer becoming stressed. i think you're going to see even higher income consumers be attracted to walmart. and walmart is doing the right things of investing in themselves and making them more attractive to that segment. >> you know, a lot of people are very excited about their e-commerce. >> business and also their marketplace business. >> i want to go to something that's not quite as exciting. tariffs. we've heard a. >> lot of people kind. >> of downplay the potential. >> tariff impact on walmart. >> because they source a lot of their goods domestically. however, other companies are not as immune to tariffs as people believe. >> and there's an. >> idea that tariffs are going to increase inflation. you were just talking about inflation, whether it's the. >> products in. >> the store or the impact. >> on consumers. >> what's the tariff impact for walmart in your mind as an investor? >> well, if you look at the retail space. >> as a whole. >> it's going to be kind of an all boats rise situation. you're

going to end up seeing that you're right, costs across the board are going to increase prices inherently are going to increase for the for the prices of goods. but again, going back to the one company that i want to hold during an inflationary scenario, during a tariff like scenario, who's got the supply chain, who has connections from their buyers, and in fact really has the pricing control that no one else has that points back to walmart. but again, going back to bigger picture, i think the real big question is what does that do to the consumer overall? and i think that's where a lot of management's commentary about what they see next year and the moderation of spending, that's where i think across the whole board, not just the retail space, but the market as a whole. we might get a little bit of a indication for how 2025 looks as a whole for the economy. >> all right, zach. >> johnson, thank you very much. >> great to see you. >> you bet. thank you. >> very good. all right. we'll stick with retail. >> we have an earnings. >> alert for you. shares of china's alibaba they're moving higher right now after. >> it topped.

>> wall street. >> expectations for third. >> quarter revenue and. >> earnings on strong year. >> end shopping sales. the company said. it expects. revenue growth at its cloud intelligence. >> group to be driven. >> by ai, and they think that growth will continue to accelerate. taking a quick check of alibaba shares. they're up just about 5.5% right now. all right. coming up here on worldwide exchange. the stock our next guest says investors. they should just have a bigger appetite for. shares are up 13% so far this year. we're going to reveal our mystery chart coming. >> up. >> right after the break. and if you haven't already you should follow our podcast. if you missed worldwide exchange. check us out on apple, spotify or other apps. we'll be right back after this break. >> nothing stands still. >> not technology, not the market, and not. >> franklin templeton. >> we've been a firm in. >> motion for over 75 years, always innovating. >> today. >> we're a leader in public and. >> private markets. >> digital assets and. >> custom tax. >> management. >> empowering advisors. >> with solutions.

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forty's going to be my year. dry. i don't shed as much. i'm a jolie addict. >> the day's top stories. >> driving wall street. brian sullivan joins kelly evans power lunch, weekdays two eastern, cnbc. >> get invested. join the club. >> the cnbc investing club is for everybody. i joined to achieve financial freedom in retirement. >> jim cramer. >> is the benefit you get that you can't get. >> anywhere else. it's a. >> great value.

>> jim cramer gives you much more than you would ever get from any advisor. >> 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 savings and soon go to cnbc.com. join jim now. terms and restrictions apply. >> welcome back. as we close in the 6:00 hour as a check on a few big stories that. >> we're following this morning. delta is. >> offering the 76 passengers who were on. >> the toronto. >> bound flight that crashed after landing earlier this week, $30,000 each. that would cost the airline just over $2 million. a delta spokesperson says the offer has no strings attached and does not affect the passengers rights. >> microsoft, announcing what it calls a quantum. >> computer breakthrough with its new maya one chip. the company says it's been working nearly two decades on that tech. >> several quantum computing. >> stocks getting a boost. >> on that news. >> we're just showing the board earlier today, d-wave up just over 9.5%. rigetti up over. >> 11, almost. >> 12% ionq those shares up

almost 6%. lenovo group beating expectations with its latest. results reporting a 20% jump. in revenue. the world's largest pc maker says demand for ai computing infrastructure has. helped it overcome ongoing struggles around personal computers. berkshire hathaway unloading another 75,000 shares of devito over the last week. this comes after berkshire sold more than 230,000 shares earlier this month. the latest deal reduces its stake in the kidneys, kidney dialysis services provider, to 44%, worth $5.4 billion. devito right now, unchanged in the. premarket but down just about 12% over the last month. and just in. >> the. >> last few minutes, shares of china's alibaba moving higher after it topped wall street expectations for third quarter revenue and earnings. >> on strong. >> year, strong year end shopping sales. company says it expects revenue growth at its cloud intelligence group, driven by ai will continue to accelerate. all right, turning. >> back to the u.s. >> markets under pressure ahead of the open after the s&p 500 closed at a new record high. taking a look at futures, we are showing it earlier in the red

across the board just off of its lows. but right now it looks like the dow would open about 60. points lower. for much more. let's bring in matt powers, managing partner at the powers advisory group. matt good morning. good to see you. hey. >> frank, good to see you. >> all right, matt, what's your word of the day? how do you see today shaping up? >> so word. >> of the day is climate. and we're going to climate because for one thing, we're based in the saint louis area. and i'm pretty sure it's like two degrees out here right now. so climate is relevant. but i really chose it because the current climate demands a more selective approach with with policy change and sticky inflation and broadening that play. stock picking and sector allocation. it matters more now than it did the beginning of the last couple of years. >> with that. >> in mind. >> i want to get to your pick, matt. what is your pick. >> first today. >> and why? >> so domino's pizzas are pick in kind of the reasoning here is it's been on our radar for a while. it hits the screens. and there's some qualitative things we like. and what triggered this. domino's is that it's on the heels of buffett's news doubling down on berkshire's ownership. they're trading at

july 21st levels, which is the worst performance since since i think for quite a while. but they're up 14% year to date. they've got an attractive relative valuation. trading at 26 times forward earnings, which is under their five year average. you know explosive dividend growth. we're always looking for that. it's close to i think right around 20% over the past ten years. but just a handful of things we actually really like here about the company is they're a well oiled machine. there's superior technology. you can look at their app, they're connected with uber eats. and later this year, doordash. same store sales growth has been significantly higher than papa john's and pizza hut. and really, their underperformance recently comes from industry wide headwinds, which is kind of been the story. so consumer pricing power, etc. >> well, matt, that's really my question for you. i, you know, looking at what their. >> last earnings. >> call, by the way, the earnings are coming up next week for people that are interested in investing. but they cited. >> economic challenges when. >> it came to consumer spending and also intense competition in the pizza space where consumers are really looking for value. so

right now. >> as. >> we talk about the stress and stress consumer, as our previous guest said, do you think this company. >> is. >> prepared to kind of battle and what looks like it's not as sexy as the chicken sandwich wars, but the pizza wars, it sounds like. yeah. >> of course, you know, and just personally, i mean, that's that's probably the pizza place that i would go to, go to select. and going back to the technology, i mean there's superior there's quite a bit that domino's does that kind of under the radar. a lot of their revenue actually isn't directly from pizza sales. it's supply chain. they they own the trucks they produce predominantly produce their their ingredients. and then the, the franchisee can use them from the supply side of things and, and as a profit share within their. so you know, just, just the just the customer consumer, you know i feel like domino's has a dominant position. and, you know, of course warren buffett feels the same way. so that that's always a positive. >> i mean, it doesn't hurt when warren buffett backs you up. i want to talk to you about the climate in the market. that was your word of the day. climate.

right now, we're seeing at least year to date where the s&p equal weight and the s&p they're trading very close together. it kind of signals a broadening in the market. as we look at that broadening. are there certain areas of the market that you're excited about. potentially going forward. and especially after these fed. minutes where i think. >> it was really. >> a hawkish tone. >> all fomc members not a. >> surprise. >> but all voting. >> for a pause. so a lot less clarity about when cuts could be coming. >> yeah there's so much going on here. you know what's interesting is the equal weight s&p. the rsp etf is matching the s&p 500 year to date. this time last year if you looked at it this time last year the s&p 500 was outperforming the equal weight fivefold. so it was up 5% versus 1%. so we're kind of looking at that situation. and with broadening i mean we've got there's a set of new sectors which looks a lot different than the start of 23 and 24 that are leading. you've got financials and materials versus tech heavy leadership are used to. so i mean again we i've said this many times it's going to be a grind this year. there's less obvious leaders. and you know don't ignore other parts of the economy. and the other part to this, we've seen a quiet shift

from growth to value to start the year. and we expect it to continue its two straight impressive years, primarily due to growth stocks market cycle. and it's no different here. >> all right matt very. >> quickly we're almost out of time. >> but you also like european equities. do you like playing it. on an index basis like the stoxx 600. or is there a certain one of the bourses that you're especially bullish on. >> yeah we actually you know european indexes obviously are on a tear right now. and we like it's frankly an international core dividend etf. devi is a symbol. and primarily because you know we're a dividend growth firm. but they they hold a lot of the holdings that we have individually and a lot of household names in there hsbc, toyota, novartis, nestle etc. >> all right matt we got to go. your pick for us today though. domino's pizza. great to see you as always. thank you very much. good to see you. >> yep. thank you frank. >> here's what to watch today. ahead of the open we get initial jobless claims and a look at the manufacturing. >> in the philadelphia area. >> we also hear from several fed chiefs across the day. >> and on the earnings front we. >> get. >> results from walmart. we just. >> talked about a short.

>> time ago. >> hasbro shake shack as well as block, that walmart. >> was going. >> to be closely watched as a read on the consumer. one quick look at the futures before we let you go. we've been showing all morning long futures in the red across the board right now. looks like the dow would open about 70 points lower. the s&p and the nasdaq also moving lower. that does it for us. squawk box starts right now. >> good morning. >> president trump says he's considering a plan. >> that would. >> send savings. from the. doj's department directly to americans in the form of dividend checks. >> his comments. >> straight ahead. the trump administration. >> also revoking approval for new york city's. congestion pricing plan. new york. city or new york governor kathy. >> hochul blasting. >> the president. >> and his. >> in her words, royal announcement on social media. plus, palantir shares plunging after ceo alex karp adopted a new. plan to sell some shares. and a report saying the defense department planning some. >> budget cuts.

>> it's thursday, february 20th. >> 2025. >> and squawk box begins. >> right now. >> good morning and. >> welcome back to squawk box right. >> here on cnbc. >> we are live at the nasdaq market site. >> in times square. >> and it is just past 6. >> a.m. here on the east coast. >> i'm andrew ross sorkin along with joe kernan. >> mr. kernan. >> nice to see you sir. becky's off. we got a whole bunch of things going on today. we're going to talk congestion pricing in just a moment. for those of us locals, it's. >> $5,000. >> big debate, big debate going on. >> which makes. >> we don't need. >> any stimulus. >> we don't need any stimulus. >> dow right. >> now could use a minor league of stimulus. it's going to open off about. >> 77 yesterday. >> you know, it's funny. >> the last. >> couple of days we've had we've. >> come in lower in the