okay. most fed heads feel okay about the prospect. they all think it's ready to turn back down. i don't know. finally oil take a quick look. oh. oh yeah. we got 10s got plenty of time, but we won't do it. make sure you join us next week, i think. are we in full force? full force with becky will be back. as for now, squawk on the street. coming right up. yep. >> good friday morning. welcome to squawk on the street. i'm carl quintanilla with jim cramer at post nine of the new york stock exchange david faber live at the priorities summit down in miami. futures are mixed. the dow is set to get pinched on this report regarding unh, which we will get to. overall, s&p is trying to eke out a positive week. we'll get some pmis and you mish within the hour. our roadmap begins with the doj investigating unitedhealth's medicare billing practices. shares are tumbling pre-market and dragging the dow down with

it. plus, call it musk versus the fed. the doge chief's saying he's considering auditing the central bank. and coinbase rallying after saying the sec is set to end its enforcement case. but let's get right to unh. shares are down on this journal story that the doj is investigating the company over their medicare billing practices. jim and joe is just going through the math on what this does to the dow futures. >> well, look, i'll go to the math of what it does to unitedhealth. this is going to be one of those long battles the government may win. may not. stocks down as if all the stocks are down. as if this is the government really cracking down on them. i hate to say it because i think that there are a lot of people who feel that they that medicare billing practices, after reading the article are wrong. carl. these companies are survivors. and you buy this. >> you buy. >> it here. >> yeah. oh, yeah, you buy it because unitedhealth is very powerful. i've often felt the unitedhealth is every bit as powerful as the government because they are strong,

sprawling and ready to fight. and the government has historically not been able to take on this group. they haven't been to take on the middlemen either. look, i mean, we have we have strong corporations in our country, and unitedhealth is not going to have to in the end. i'm telling you that i do not think this is going to be significant to their earnings. that's what i'm saying, david. >> one question will be. whether jim's right from a legal standpoint or a political standpoint, given some of the winds that have shifted regarding some of these names. >> yeah, i mean. this is this. >> is fascinating. and. >> you know, obviously unh. >> and any. >> number of the other. insurers have been. >> sort of in focus in. >> part, obviously, we all remember the tragic murder of unitedhealthcare ceo. >> not that. >> long. >> ago, but. >> of course, it did. >> sort of increase the overall discussion around medical care. >> in the. >> country, what is covered and what isn't. it's important to point out here, there's sort of two different lines of criticism, so to speak. there was the great wall. >> street journal.

>> stories, right? really good reporting from not. >> that long ago. >> as you guys remember. >> jim, i remember. >> we were talking. about it where they. >> were talking about. essentially having these doctors diagnosed at far higher levels in terms of. what the procedure might. >> what paid. >> back for by medicare advantage. >> that's different. >> than the whole other argument about what they. >> cover or don't cover and how. >> they fail to cover. >> what many. >> believe are necessary medical procedures. >> yeah. >> but look, i mean, again, i come back, why do we have higher payments from medicare advantage? i mean, this stuff is so opaque. they these companies have had a lot of scrutiny against them. the you're going to need legislation. i don't think you're going to be able to do anything with the justice department's civil fraud division, by the way. right. you have the legislation, then there's an issue. but when you have these lawsuits, it tends not to bring about any sort of practice. look, look, i'm not being cynical. i know that there are people out there just saying, how can you not how can

you not think that this is going to break up everything? well, i mean, think about the history of the government winning against these big companies. they don't. and i am saying that down 12%, you buy unitedhealth and we'll have portfolio managers come on within the next six days. and there'll be a huge number of people who bought them because, well, it's been these, you know, these long lawsuits. so i'm just saying get ahead of it right now. >> are you willing to draw any broad brushstrokes about regulation or a new doj or the. >> lack thereof? >> i think that this doj is like other doj's. they're just not powerful enough to take these companies on. they lose. in the same way. if you look at all the lawsuits, the opiate lawsuits, i mean, they ended up having to pay, but nobody got shut down. nobody went to jail. no. this again, this is civil. you know, david, i think that there are certain companies in the health care industry that continue to win and win and win, and the initial reaction tends to be an

overreaction. >> you very well may be correct here. >> jim, although there is no shortage. >> of frustration. >> i think. >> overall with our medical. >> system in. >> general, with the cost of so much care and with the fact that so much of it seems. >> to. >> be an issue. >> with those who. >> were paying all this money to insure us against it. >> i mean, guys, you know, bill ackman has obviously gotten involved. >> in this for some period of time. he tweeted today. now bill. >> has been talking about. >> the other side of the argument, not what. >> really is the focus. >> of the doj investigation. he i'll come. >> back to it in a minute. but there's his latest tweet. >> he's coming. >> back to this basic idea, jim, that listen when. you do as unitedhealthcare. >> has. >> which is attack. >> your critics with. >> such fervor. >> he says. >> you know that he believes the guilt of a crime increases substantially. he's referring at the end there to a doctor who posted a video some time back.

this was earlier january, in which he basically was called out of the emergency. >> out of surgery to talk. >> to united healthcare. >> about whether or not the patient. >> was requiring inpatient care for a day and a dispute around that. and she posted the video. ackman linked to it, he commented about it. and then he got real enormous pushback from unh. and then followed that up a couple of weeks later with a very long sort of missive about united healthcare. but it's interesting what he's saying here. >> jim, in. >> terms of avoiding the stock. >> when you find two cockroaches, it's almost certain there are many more. >> well, again, legislation can do something. this idea of creating policy through the justice department has not worked in the justice department, has routinely not been able to create changes, but congress can. and that's what has to happen. look, do i agree with that? i would i think i

favor universal healthcare, so i'm way off the reservation. but i do think that if congress gets involved, as they did under with obamacare, they had a shot right at the end. it was it was destroyed by the republican party. but that's that's what happens. >> let's bring in our bertha. >> coombs this morning to talk about this story, bertha. and then. the cnbc story yesterday regarding unh, about potential buyouts for some employees and the consideration of some layoffs to. >> so let's talk about. >> what's at the center. >> of this. and it's what people essentially sort of call upcoding in the industry. medicare advantage plans get paid for treating patients and keeping them healthier. so the sicker the patient is, the higher the so-called risk adjustment, the higher risk adjustment. if all of a sudden someone has not just, for example, high blood pressure, but also a heart condition and potentially copd, then there's a higher reimbursement rate. now the office of inspector general

has found again and again that medicare advantage plans in general tend to do this upcoding one report back during the trump administration in 2019 said just in one year it was more than 6.7 billion. the most recent inspector general report that came out last summer said it was 7.5 billion in upcoding for just 2023. unitedhealth, obviously one of the biggest players when it comes to medicare advantage. they have more doctors. they have a lot of nurses as well, so they can do these reviews. but the inspector general's office has also found that sometimes these reviews are done just from looking at charts. and 99% of the times when they look at charts, it results in a higher acuity. >> bertha, is there any move bipartisan move to do anything here? we know that periodically congress can get involved and

really change things, rather than having legislation done by the justice department. what are you hearing about republicans agreeing with democrats that maybe something has to be done? >> you know, they haven't looked at this case as much as they've looked at the issue of denials, and certainly they've looked at the pharmacy benefit units. we have seen about a dozen different legislative efforts to try to get at pharmacy benefit units. the problem is that it all comes down to these, you know, budget deals. there was going to be one that was going to be included last december. it wasn't. we'll see if it gets included in the next one. it's difficult for congress to get together and actually do something right. >> and there it is. yeah, there it is. >> you say it. >> here it comes. >> out there. >> justice department doesn't do it. at least people look at what happened to microsoft. anytime justice really gears up, doesn't work. >> bertha, our thanks. >> as well. >> we'll talk a lot today.

bertha coombs. let's turn to the broader. >> markets as well. this morning. >> investors continue to monitor. >> the developments. >> in washington. yesterday at cpac, elon musk. >> took. >> the stage, as you know, to discuss who his doge group might be going after next. >> are you thinking. >> about. >> auditing the federal reserve as well, which is obviously yeah, sure. regulatory economy. i. >> i imagine you think. >> the waste has got to be everywhere. >> yeah. >> no waste. >> waste is pretty much everywhere. people ask, how can you find waste. in like in dc? >> i'm like. >> look. >> it's like. >> being in. >> a. >> room, you know? and there's. the wall. the roofs and the floor. >> are all targets. >> so it's like you're going to close your eyes and go shoot. >> in any direction. so you can't miss. >> what are. >> wearing sunglasses. >> he brandished. >> that chainsaw gift from melee today. the times. >> gym has. >> this piece. does elon musk still care about selling cars? which quotes some institutional shareholders saying, we'd like a ceo who. >> actually is. >> interested in running our own business. >> then sell the damn stock.

okay, so there's this piece in the atlantic. this is what happens when the doge guys take over. i want everyone to read this piece because what it is, is they come in and they get into your computer and they find out what's wrong. and it is devastating because they're going into companies and really they're going, i mean, going into agencies and just taking over. it's a great article. it's heavily sourced. and one of the things that is very clear about it is they're winning. they're winning. they they're finding things and they tend to be into agencies so far, which are, you know, that i think have like the consumer, the consumer financial safety board, they're in they're heavily they tend to be in under agencies that frankly many people would say democratic agencies, democratic agencies. >> it's interesting, david. >> certainly the times. >> as well has looked at itemized savings, which. >> they argue. >> through their reporting is. >> not as much as doj's claiming.

>> yeah, i mean. >> i. >> think a. >> lot of people are waiting for a little more transparency in terms of the numbers, although i know we are being presented. with some of them. and then the other question, of course, is are you really in a position to actually make the decisions about. >> what is. >> waste or not in terms of the personnel. behind it? >> or are you, you know. >> are they. and do. they have that expertise, guys. >> to actually choose the right people, so to speak, that should be removed from a particular, particular government. >> agency in order to reduce. >> access or reduce the waste? >> i don't know the answer there. >> but obviously this this. >> effort continues. it seems to me he was kidding a bit about the fed. i don't i don't know. i didn't get the full context of that conversation. >> well, the fed gets. audited every year. >> it's hard. >> to. >> know what. >> would. >> be. >> different about an outside audit. i guess there's the. added element, jim, of people. that have been fired and then rehired, or they've had trouble finding the people to rehire. once they've. >> fired them. >> this thing is done. so ad

hoc, there's almost no due process whatsoever. if you overwhelm the courts and just make it so that they have to constantly take take up these matters, then then doge wins. that seems to be the pattern. they can overwhelm the court system with all these different if they just keep going after agency after agency. >> you know. >> david, one one interesting thing, there's a. >> couple notes out today. >> about best. >> since 333 and specifically about getting the deficit down to 3% of gdp. b of a today says you could do it by getting nominal gdp to ten inflationary. you could do it by raising tariffs to 30% from two. that's going to be tough. so you really are left with doge. i mean, there's a growing consensus that we need these savings. >> yeah. or obviously you can. >> get at the part of the budget. >> that is medicare and medicaid, social. >> security, defense spending, which is potentially going to. >> be decreased. and then overall reducing. >> interest on the debt as a

result. i mean, that's where the money. is in terms of where the money is. it's the same. >> way everybody's here. >> because the piff is where the money is. >> and you got to go where that is. doge, obviously. >> it's not. >> insignificant the numbers themselves, but as a percentage of the overall budget, as we all know, it's much more those those things i just mentioned. listen, you know, jim asked the question about musk or. >> it was asked, what about cars? what about so many other things? >> what about. >> spacex, where he he has great leadership. >> in gwynne shotwell at tesla. obviously there's leadership in place. >> there as well. and so. >> if he parachutes in and certainly looks at certain key issues, it would seem. and then there's xai and his efforts. >> there. >> as well. i mean, musk comes up in almost every conversation, doesn't he? including one i had yesterday with the ceo of oracle software, cass. it was an interesting conversation. of course, we talked about stargate, as you might imagine, the enormous plan to spend as much as half $1 trillion over quite a few years to build out the data centers to support ai, in part from, of course, or largely from open ai. but she

also mentioned the balancing act that oracle is currently engaged in, in terms of two important clients, both openai but also elon musk. take a listen. >> that abilene. >> site was initially offered to xai. which we love, and elon wanted it very quickly and he wanted it like in november, which was just a couple of months now. it wasn't the physical building buildings weren't finished yet, so there was no way. so elon did. i would say the next best thing is he bought a or he rented an empty building. and i don't expect that he's going to keep doing it that way. >> you don't know why. >> i think because you you really ultimately want to have your power supplies more redundant and all of those things. but he did a lot of very clever things, including using

their batteries to avoid spikes. and so, again, all very well thought out and met his needs. and we're thrilled we work with them extensively still. >> and that was. >> that was certainly guys taken as a real positive by even investors in oracle. now abilene of course is where they're building the giant site to support openai as part of stargate. and we all know what musk did. and as safra was mentioning or referencing in memphis, in terms of building an enormous data center in, what was it? jim jensen huang said, 19 days, nobody's ever seen anything like it. but interesting to note and how you i mean, given the clash between these two men, you know, if you're oracle, you sort of want to you want to cater to both if you can. it seems as though they're going to be able to do that. >> yeah. look i think by the way there was a great interview. and to get safra, i don't know if

people realize how important she is. the oracle is now a tech titan out of nowhere. i think business insider had the best piece on on musk. we really liked it. and the second second bullet of it is everything from tesla to xai to spacex has seen valuations soar in recent months. so again, the complainers they really have to rethink their view. this this guy is creating wealth. he's changing the government. is he president musk. >> he's he addressed the american people from the oval office. >> who is the apprentice. >> i always think you gave jack. >> dorsey so much grief for splitting his time between. >> two companies. >> you don't have a problem with this? >> no, no, i don't think. >> look. >> dorsey, i think him grief because i wasn't clear that he wasn't favoring one. this guy favors every look. he's he's remarkable. i just don't want him to show up here. >> nobody does. >> and if you look at his poll numbers. >> i. >> don't think. >> anybody wants him around them either. >> yeah. >> you know, what do you.

>> do when it. >> says elon musk on line two? what do you do? >> well, take. >> a. quick break here. a lot. >> more. >> from david in miami. >> who's going to wrap up a remarkable week of coverage. we'll get to booking live nation, rivian baba coin tsm in a minute. >> at capital group we see active etfs differently. >> we collaborate designing them to remain strong, preparing them to weather the ups and downs of the market. that's what sets our active etfs apart so they can be rooted. >> at the core of. >> the portfolio. they're meticulously crafted. >> to endure. capital group. >> actively different. >> active etfs. >> nothing stands still. not technology, not the market, and not franklin templeton. we've been. >> a firm in motion. >> for over 75 years, always

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what i keep referring to is congress passed a actual codified section 883 of the tax code saying that their income is not taxable. so, you know, you need to get congress to check off. now, city in the snow does say to make these changes, we believe president trump would need to focus on the cruise industry. >> yeah. >> but implying that if the president does focus then it gets rid of congress. now, look, maybe i'm outmoded. i have been focused on congress because that's the way our country has since, i don't know, like jefferson. but everything's new. but this needs congressional approval. i don't know how else you can. >> do it. all we do all day is argue about article. >> one, jim, and whether or not. >> congress has power. >> of the purse. >> no, i mean, i just maybe i went to law school, maybe that i took two years of constitutional law. what a waste of time. i should have taken law in the banana. >> we'll get some. >> other travel. >> names, live nation as well. we'll get the opening bell and just about four minutes don't go

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>> let's get some. >> discussion here with jim about either. >> palantir or. >> bob actually is pretty interesting. >> well, bob, we've got two streams of revenue that are that are explosive, so to speak. one is cloud and the other is e-commerce. now, it's very clear that the prc, the party has said, look, we want more spending, and that's the e-commerce. and when it comes to the cloud, well, that you could say that, steve seek you could say they really know what they're doing over there. i know that, by the way, jen-hsun huang has been quiet, but there is a piece this morning, i. >> guess, the morgan stanley note. yeah. >> that he don't worry because it's really, really post-training. that's a more sophisticated way to put put it. but he's broken his silence. but alibaba can. when i speak to david tepper, i mean, it's very clear alibaba is still inexpensive. i don't like the idea that you're coming in at this level, but the fact that they have two revenue streams that are on fire, not one,

really speaks to how china wants to promote spend and how brilliant they turned out to be in terms of technology. >> well, we got. >> the. ryan cohen news yesterday. today benchmark goes from 118. >> to 190. and jim year to date s&p is up four. hang stangs up 17. >> well look may. >> i might you argue. >> your. favorite bank. >> should be banco santander. i mean we've got a we have a lot of foreign stocks that are doing quite well. and i think that the president if he heard this discussion, i think he'd say no. look, our averages are still hitting highs. but there is it's better to be overseas right now. >> let's let's get the opening bell. here and the cnbc real time exchange of the big board. it's downtown alliance. great organization serving the residents. >> and. >> businesses in lower manhattan. at the nasdaq. >> it's transportation. provider universal logistics. >> breath evenly split at the open on palantir jim i mean i did want to i mean. >> they're back they're back walking it back up. and it's not clear, by the way, whether there

is insider selling to the level that they're talking about. i will point out that the last 20 points were 20 points of, i think, of alex karp doing his book tour and talking about things. and what really got it down was and i'm not so sure it's the right thing to do, because we listened to morgan brennan's excellent interview with with jim taylor from lockheed martin. he said, listen, they're not the enemy. work with them. but the idea is they really have been the enemy. and i will point out that they have said over and over again that the concentration of a few defense companies has made it so. the defense department is ripped off. so by no means do i think that palantir is out of the equation as being a fighter of waste. i thought that for sure that because of their close relationship with musk, that they would be tapped by doge to come in and help. that has not happened, right? >> there were some screens. yesterday floating around morgan stanley looking at tech companies presented revenue from government. palantir is at the top on large. >> cap. followed by microsoft.

>> and servicenow. but i think yes. >> oh no pound pound here that karp would tell you that when you bring them in, they start saving you money and they start doing the right thing. and he's vociferous about it. we don't really have the data. we know international is actually bad for them. and that is a substantial part of their business. right. so there are things that are not going right for palantir. but again, karp would tell you that i think the crucial thing is, do they get anointed by doge to save money in the defense department because they actually know where the bodies are, because they happen to be an expert at procurement, and that is at the heart of the waste is procurement. >> procurement. yeah. the $400. hammer from back. >> in the. >> day and they know it. i mean i'm reading alex's book actually. well it's well it's well sourced. i mean there's page after page of actual, you know, footnotes. it's not a i read another one that was online. it was really terrible. and i when i got a copy of this,

i sent a note down to alex karp saying, thank you very much. it's better than such and such a book. but maybe you sent to me by mistake. i've been critical but didn't know. and i. you know what? i'm really not critical. if you look at my at my record about the stock, i've just since 50. i said it was going to double. and i think it's going to come back. it's going to come back hard. >> david i don't. know what you. >> want to take a moment to put this week in miami into some framing. >> sure. >> you know. >> it's funny, guys, because i was just talking to, you know, somebody else been very helpful here. as you always know, when you come to these things, it's not necessarily you sit down with on air, although we love to bring as much as we can, obviously, to our audience, but also very helpful to talk to a lot of the. >> attendees. >> including somebody i was just talking to off camera. you know, openai comes up a lot. i in general, of course, as you might imagine, has been a key focus here. how could it not be in so many different ways? masa is going to be here. in fact, he is here in meetings right now. as you might imagine, the man who runs softbank and vision fund one and vision fund two, and will be a guest here a bit

later, unfortunately not coming on as a guest on cnbc. but you know guys listen, it's what you might expect in terms of listen where the money is coming from, in terms of what the pidf is focused on and where any number of the people here in attendance are trying to actually grow their business with capital that they need to do. so we've got the big guys, but jim, there's an entire ecosystem around them as well that is growing very quickly, not to mention all, i guess, of the hopes and dreams of ai in terms of what it's going to mean in the enterprise as we really. >> start. >> to focus on that and the returns that many believe are going to start to come to the fore as soon as, you know, the middle of this year. >> yeah. look, fascinating conference call. glenn fogel was on tv with a conference call with booking holdings, basically saying, listen, a lot of people are going to be wiped out by generative ai, but we actually have this incredible generative ai unit. i felt very i felt very secure in it. i'd liked a long time booking holdings that

they're using it, and they referenced the open table contract with salesforce and how that's working for them. it was good to see that this is the agent force, david, that everyone is very excited about and they're using it. but, david, the enterprise software stocks have just been horrendous. workday bid service. now, david, have you seen that i was going to recommend that after this should be the should be bond it's obviously not working for service. now that's a joke about the ad, which i really like. >> no i like that as well. i was that was very good jim. thank you. i mean, the stock has not really rebounded since those since, since since the earnings. right. >> no. exactly. >> we had mcdermott on that day. yeah. yeah. >> what do you. >> think of that. >> yeah. >> there it is. >> do you think it's a reversion to i. >> don't know what to think about that i don't know. well i you know it it's funny when you talk about multiples again i mean yeah i mean palantir i keep coming back to that. you guys already talked about it.

>> obviously. >> that's a. >> hoot in terms of. >> the. multiple multiple. >> which has. >> it's a. >> hoot i know. but it hasn't scared you off. it's a what multiple. >> a hoot h o o t is like what a hoot. that's a technical term. no i mean come on. palantir doesn't trade on multiple bases. it trades on david the rule of 40 and it's got an 81. how dare you challenge this made up rule of 40. that's so important about the growth rate and the margin. what do you think. you don't think that's important? are you going to defy. >> you think it's important. >> the orthodoxy. well, this is 81. palantir. actually, alex karp recently called for a rule of 80. he thinks the 40 doesn't work. and it is the highest. it's the fastest growing. it's the way he sells the stock. 81 not sells the stock personally, because i don't get i don't get in the crosshairs of palantir there. you know because he's also the great what the greatest shot greatest pistol shot in our country. and he knows the back and forth. i only know it back. and i would not want to mess

with alex clark. i don't want to be in a look. he went to his first one. he went to central high in philadelphia, so he scrapped. >> so your personal safety is something. >> i look i don't i don't want to have to hire five bodyguards because alex can't. jim, two names might be somewhat related. there's block, which we haven't mentioned. and then we've got coin and the sec staff calling off this enforcement case. >> that was a bridge too far for the sec. and i love the boy. the victory dance that they had on this morning. yeah. look, i don't think i didn't think block was that bad going back and forth with amrita ahuja, who is a terrific cfo. i thought the quarter was fine. i think that it's still growing like mad. i just it has been a good stock, not a great stock, somewhat like paypal. and then brian armstrong just basically just saying i that ha ha ha. but he did spend $50 million fighting the sec. and it's obvious that gensler was on the wrong side of history on this. >> it's just. >> expected more more of a relief rally or. >> no, >> no, i think that once gensler was out, i think he just

presumed that they would withdraw it. that's just the way of i mean, we have the crypto president. crypto president. so you don't these these agencies do serve at the behest of the president. i think people forget that. by the way, the biden agency served at the at the behest of biden. and you saw a lot of adversarial, very adversarial rulings against business. >> yeah. >> i'm thinking of. >> miami, david. >> which at one point was being called the crypto capital of the country. >> yeah, yeah. >> and still in some ways is i mean, i was talking to participants here yesterday. i did a panel on crypto, actually. obviously a lot of it was focused on stablecoins and the growth there. so you might imagine given the panelists, including zoe cruz, by the way, who once was the co-president of morgan stanley, ran fixed income there, but is an absolute believer in crypto at her firm now. and, you know, they they fully believe, first of all, in what jim and you were talking about, the change in administration has been and it's been reflected obviously in the price, not just of bitcoin, but so many others involved in

crypto has been staggering in terms of a 180. and then, jim, do you hear them tell it? you know, eventually it you know it is going to be used for productive purposes, not just as a store of value, but i'm talking about crypto overall and stablecoins and what they're going to mean. and it's going to take over the financial system that, you know, that's essentially what many believe over time is going to happen. >> well. >> look, we always know that it was a parochial view that gensler took. tim massad of the cftc didn't take that view. he said it's going to be huge overseas because they have even less faith in their currencies than we have. and it's got a lot more portability than gold. look, i'm a huge believer in it. i don't know if i'm a believer in the big bump, but i am a believer in bitcoin because i believe the 36 trillion i don't know what to do with the 36 trillion in debt. i haven't figured that out yet. david. i thought when you spoke to mnuchin you would push the 50 year bond that, you know, i'm a huge believer in. >> at least he confirmed that there is gold at fort knox. i thought that was important.

>> i thought that was. >> you bring everything back to bond. yes. you're focused on bezos and bond. you are truly agile. >> exactly. >> i goldfinger. >> was one of the best. >> do you want me to talk, david? do you want me to talk? >> no, i want you to die. i don't, i really. >> don't, but. >> i expect you, i expect you to. >> what is. >> seen, i expect also. >> i think he liked the name of the actress who was on that. >> yes. i love that name as well. of course, as you might imagine. >> the possibility. >> of a bitcoin. >> david. >> you. >> can say it. you can say it. i'm not going to say it. >> i'm not going to say it. >> yeah. >> bitcoin reserve is another thing that may be coming guys. and would be a big i am not a big moment for crypto as well. and something that my panelists yesterday believe is certainly, you know potential reality coming. not quite sure. and by the way, all the stablecoins are actually backed by treasuries

and ultimately the us dollar. so many argue it's really good for the dollar because it just cements it as the currency in the world. >> oh man. remember when they were falling apart and everyone was so worried? well, whatever. i do think that that crypto, the part that gensler really didn't like were the bogus coins. he didn't want to see that sorkin coin. he was against the sorkin coin. >> what about the trump coin? >> the trump. >> coins are are a potentially problematic. yes. >> well, look, david, here's the new rule in this country. let m? it's called caveat emptor. >> okay. >> all right. there you go. caveat it. when anyone asks you anything about administration, you just say caveat emptor. give you a little clue there, jim. >> some discussion about the. consumer today. goldman looks. >> worried about january. >> and looks. >> at the walmart guidance. restaurants slow start to the year texas. >> roadhouse good example this morning. consumer discretionary net selling nine straight weeks. >> i have them on tonight. and i

think that the problem is january. the weather all over the country just absolutely crazy february 2nd. and you don't go out a lot during these months. the weather is it's the biggest asterisk. and i think therefore it's the greatest opportunity for these for a lot of these stocks. i think walmart's terrific. >> i mean. >> goldman does that. if we don't get any sort of mean reversion or normalization with warmer march. weather than we need to have. >> a deeper debate about what's driving. >> i am going to agree with that. i'll tell you on the texas roadhouse call mocktails, mocktails doing incredibly well. >> glp one effect. >> yeah, well, by the way, that wegovy is no longer in short supply and people are taking up lilly. taking it down. and i think that's probably i'm not sure that's necessarily the right thing with lilly. but yes for him now hims by the way hims hers. they are adamant. i mean put this really clear that they've got ways that they can do compounding. so they're not that worried. it is a big short squeeze by the way. and i don't like to don't like to really recommend short squeezes here.

palantir you know you can't go wrong with palantir. you can mention it. well i had i had 15 of my friends down to the islands on on what was the stock that they owned. palantir. >> i'm thinking of the tweet you wrote on january 23rd you think can get in its way nothing. and you stand by it. >> oh my god, yes. are you kidding me? i look, i think alex karp may be. not only is he rigor. what? he's an operator and a promoter. david, can. >> you stop already? >> will you just. >> stop already? enough. >> no. do. you can't get. oh, you really think so? >> you haven't even mentioned nvidia. when are you? >> well. >> we kind of got it. >> i think you were. >> you were away. >> your brain. >> now look, i'm. i'm reading the. >> book about it. >> i'm reading the book. i'm reading the book a lot about jefferson, a lot, a lot about the founding fathers in there. he's a historian, too. hey, look, listen, there's more than

one musk. >> and it's alex karp. >> well, i think he thinks so. >> david's right. though. >> we do get nvidia earnings next week. >> no, it's going to. >> be very. >> very this tactical trade from morgan stanley on tsm today is part of it. >> yeah. and there's four different notes today saying don't worry about the quarter so that i don't like that we need the we need we those who own it like albatross. we don't want any expectations, especially because blackwell is just now shipping for some companies. that's the latest and greatest. and we do like david. there's a there seems a secret atlanta atlanta warehouse for musk where he bought a lot of gpus. i don't know if you're aware of the secret atlanta got that one. >> no, actually. >> i had not heard about that. >> i was only aware. >> of memphis and the. >> 200,100 and. >> the atlanta. >> atlanta center warehouse. i'm reading business insider has sizable power. >> is that for is that for? >> it's for x and x. yeah. >> and oh it is for x i okay.

>> you know this is david 12,000 gpus. they bought $700 million worth of equipment. again another check presumably for jensen huang. remember when they had that split that split over. >> yeah david jensen. >> that splits over. have you used by the way have you guys used grok three? i got i mean very effective very i thought very impressive in terms of. >> i thought it was okay. >> jim i know you. >> think it's okay. >> i don't know i, i thought it was i thought it was pretty good. i thought it. >> was. >> pretty good. boy. it's up to date. hallucinating like mad yesterday. no, look, okay. >> i find, you know, it's very. i find it very frustrating when chatgpt in terms of you're still stuck in october of 23, at least for some of them. >> they update it. you got to are you paying. they had 20. they they had data from this week. i was you got to pay for it. you're on the freebie. >> version i stopped paying. well that's why. >> the current one is up to date. >> i stopped paying because i wasn't using it. >> how are you with meta ai? it's really good for social

stuff like kim kardashian. i haven't used it. >> i have not used meta ai. >> at all. >> my wife met lady gaga. she's really great for lady gaga. >> at the game. >> yes, yes. >> she blocked her. she didn't know it was lady gaga and was, i thought, a little surly and then she just felt like killing herself. >> there was a good piece in the times yesterday. >> about this new. >> era of startups, where the key metric is how few employees you. >> have because. >> of ai. >> and that's. >> changing the way they they even fundraise. >> i do think that there are few employees in areas that are drone like, but they're more employees than areas that really matter. i know salesforce, really interesting that they're talking about, you know, lack of code, but they are putting people in a much more substantive positions. i think banks will do that. >> too. >> really quickly, jim, on rivian today, they do guide a little bit light on full year delivery. there's a piece out about their last minute loan from the government at the tail end of the biden administration, that the governor of georgia is now. >> saying. >> i don't. is it in question? >> yeah.

>> a big beneficiary would be elon musk. >> normal. the normal plan is doing well. i know that they missed by about 5 or 6000, but i don't want to be in that business unless i'm with musk. it's the stuff isn't selling well enough. it really isn't. i really like rivian, but wow, i got to tell you, this administration, they're trying to impound that money. i think that they would like to take a lot of money back that biden released in the last few weeks against the law, but that really is an abstraction. >> so as we were just. >> saying. >> it's an abstraction ppe against the law. who's going to enforce it? the justice department, the justice? >> well, now you're getting to the actual the rubber meeting the road. yes. defying court orders. what does that look like? right. businesses and consumers respond. >> we don't know. i mean, the justice department is overwhelmed and i don't know whether they're going to go against the president, because the president has said from the very beginning that justice department should be working for him. now i come back, he said these things, the people who

voted for him, this is what they want. >> yeah. and he won. >> 9.9% who voted. >> but the seven states don't. you get the seven states landslide you got? he is. well, he's under that same thing that palantir is the hoot. >> the hoot. >> the hoot. because when he speaks it's just and boy, the business people all nod. yeah. and then you're like, oh yeah, that's true. and they all so many of them didn't like them. it's hysterical. >> guys as we've been talking, got some data crossing the tape. flash manufacturing. pmi 51 six. >> we were looking for 51 five. >> and. then services. >> 49 seven compared to 52 eight expected. >> and we get to january. weakness. that's go buy some bonds. >> contraction right. >> yeah. no look the big debate here is what's happened. is january just because of weather or is january the beginning of the long slump. >> it's often cold in january. >> yeah. the weather. >> but they didn't drink mocktails in january. >> right. that's that's. >> a mocktail. holy cow. the liquor prices got too high. they

kept raising and raising and raising and they just they left the building $5 margarita. >> that's it. >> we'll see whether we get some. we'll need more information in the coming months as we go to break watch bonds as well. we will get a little fed speak today from jefferson and daly around 1130. existing homes in yuma are coming up in just a few minutes. stay with us. >> the bond report is brought to >> the bond report is brought to you (traffic noises) (♪♪) the road to opportunity. is often the road overlooked. (♪♪) at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts.

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my work here is done. excuse me, which way back? uh, follow him. securely linked to your brokerage accounts. become a smarter investor with the power of cnbc pro, go to cnbc.com now. >> week to date s&p really not straying far from the end of last week. but here's a look at some gainers smci. of course we've talked about jim. and i guess we'll put the we'll see whether we get the confirmation about listing. >> yeah it's all in nvidia. remember it's in nvidia. but that's the blackwell. >> you can see the tech influence there along with hasbro in the fifth spot. dow is down 360. let's take a break. be right back. >> what if you could tackle your dog's itching mushy poops and

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ask how to get up to one thousand dollars off the new samsung galaxy s25 ultra with xfinity mobile. amazing and is something that we get to use every day. >> jim on matt tonight. >> texas roadhouse don't forget those cinnamon buns and the amazing $11 steak. it's a fantastic deal. we have to figure out exactly whether january is good or bad and whether it's the weather even. we're going to look to valentine's day. that's how close it is. toby rice in natural gas at four bucks. it seems to be a good business, but

my surprise booking is john feeley on monday. and he is celsius, which is up gigantically because they made a fantastic acquisition. i like john very much. the group has been under pressure, but he's been a great long term performer and i do think that this is going to be back a story stock it will be back won't be palantir. i feel like i've mentioned palantir. >> a couple of times, but there's a lot of nutrition i guess is the. >> nutrition. a lot of people don't seem to know it, but the numbers are spectacular. makes it a little healthier company. john is some people feel he's motor. i think he is an operator that's the different promoter and operator. alex karp is everything now is the most researched thing right now. it's the name that's up and the m is just, you know, a dollar sign represented by a man. >> it's definitely their turn, jim. have a good weekend. i'd say go birds, but we're in the know. >> we're done to go. sixers. who cares about nba? we care about what they care about nba. >> 6 p.m. eastern time coming up in the next hour. an exclusive. >> with the.

>> ceo of visa coming off their investor meeting earlier in the week. as we go to break another look at unh, clearly dragging the dow lower close to session the dow lower close to session lows. index is down. i can't believe you corporate types are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one. user experience seamless and simplify access to product information for customers. we build enterprise websites like this all the time through a fully integrated. digital

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>> the cnbc changemakers returns. >> 50 women innovating and driving change across industries. >> find out who has made this year's list. meet the new icons, the cnbc changemakers revealed monday in squawk box. >> good friday morning. >> welcome to another hour of squawk on the street. i'm carl quintanilla, morgan brennan here at post nine of the new york stock exchange alongside david faber, who's live at the priority summit down in miami. sara eisen has the morning off. dow getting hurt by unh. the story we'll get to in a moment. but aside from that, some questions about growth in the consumer after walmart's guidance yesterday and today. just now, the first contraction in services pmi since january of 23. >> watch very closely. we're 30. >> minutes into. >> the trading session. here are three big movers that we are also watching closely. unitedhealth under pressure. the journal reporting that the doj has launched an investigation

into the company's medicare billing practices. we're going to have much more on this and the fallout in just a moment. and you can see shares are now down 9%. alibaba shares jumping again after earnings yesterday. reports now that gamestop ceo ryan cohen has increased his personal stake in the chinese tech giant to roughly 7 million shares. that's worth about $1 billion. baba sent the hang seng higher overnight, too, and it's now up. get this a whopping 60% since the start of the year. also watch the travel names today. booking holdings gaining on strong numbers, room nights, gross bookings and revenue all up double digits year over year. strong international travel demand was really the big driver there. you can see those shares up about 4.5%. >> weighting on michigan consumer sentiment a few moments ago. we'll get to that. actually 64.7 we have now is pretty much in line with actually just a slight miss from 67.8 expectations. we're going to couple that with the services pmi number along with existing diana scott that hey diana. >> hey carl. that's right. existing home sales in. january

fell 4.9% month. >> to month to. >> a seasonally adjusted annualized rate of 4.08. >> million units. >> that is. >> a much steeper. >> decline than. >> the street was expecting. sales still. >> 2% higher than january of. >> 2024, but that's not saying much given. the levels right now. this read is based on closings. so contracts likely signed in november and december, when mortgage rates. >> actually came. >> down from over 7% to the 6% range. rates are now higher again. >> inventory increased. >> 3.5% for the month, up. 17% from a year ago. >> but still at. >> a very low level, just a three and a half month supply. at the current sales pace, that is keeping pressure on prices. >> the median. >> price of a home sold in january was $396,900, up. 4.8% year over year. that is the highest price ever for january. >> and all. >> four regions saw price. >> gains all cash sales. >> at 29%. >> which is kind of historically high, but down. >> from 32% the. year before. first time buyers still. >> struggling at 28% of sales.

same as a year ago, but historically they usually make up 40% of buyers. >> back to you guys. >> all right, diana olick. >> thank you. capping off a interesting week, we'll say, for housing data to one of the big stock stories of the day, thoug, united health care shares sinking on the journal report that the doj is investigating the company over medicare billing practices. other health insurers are also getting hit. you can see on on your screen right there down in sympathy. bertha coombs is here with what investors should know. >> bertha morgan. the justice department. >> is reportedly pursuing a civil. >> fraud case against unitedhealth for overbilling in medicare advantage. that, according to the wall street journal, citing unnamed sources. now, the issue surrounds what's known as risk adjustment payments in medicare advantage plans. secret payments with multiple patients with multiple conditions incur higher risk adjustment reimbursement payments to plans. the idea being that getting you're getting paid to keep patients

healthier. but an hhs inspector general report last year found that higher risk diagnoses that weren't supported by actual care resulted in $7.5 billion in overpayments in 2023 to the top 20 medicare advantage plans. and that was second, the second report in five years. both reports recommending better oversight over this program. now, scott fidel of stephens notes that overpayments have been a perennial source of contention between the insurers and regulators, and the biden administration clawed back overall rates to account for that, while rbc's ben hendricks says he's skeptical of today's stock move on unnamed sources. now, unitedhealth hitting back in a statement against the journal, saying the wall street journal continues to report misinformation on the medicare advantage program, adding that the government regularly reviews all ma plans to ensure compliance and say that they

consistently perform at the industry's highest levels. and they said, adding, we are not aware of the launch of any new activity, as reported by the journal. they said we are aware, however, that the journal has engaged in a year long campaign to defend a legacy system that rewards volume over keeping patients healthy and addressing their underlying conditions, and any suggestions that our practices are fraudulent is an out is outrageous and false, according to the company. so they have been striking back at the journal that has posted a number of stories about this over the past year. back over to you. >> it's interesting to see that they put a statement out after the report went out, because in the report, at least initially, according to the wall street journal, united health had actually declined to comment. but obviously now we're seeing the shares, you know, fall pretty dramatically in response to this. bertha, i just want to make sure i understand this because at least based on the wall street journal's reporting, this is a civil investigation.

it's separate from the longer running justice department antitrust probe that's been reported on. and it's also separate. >> from the doj. >> suing to block an acquisition for $3 billion. so there's multiple things going on. >> this is a whole. >> separate this is a separate issue. >> just in terms. >> of the practice. there have been a couple. >> of. >> whistleblower cases with regard to this as well, where they say doctors. >> nurses are looking. >> at this and essentially upcoding a person's illness. they also do. it through looking at electronic health records. and one oig report said 99% of these reviews of these records result in an upcode. so this is a separate issue that involves the health insurance unit and the way the medicare advantage plans interact. but as you mentioned, there are number of other issues on other regulatory fronts, be they the pbm, the pharmacy benefit management

units, or also with the insurance, whether there is denial of care, which has become a real hot button issue these days. >> yeah, bertha, that was where i was going to ask to make that distinction between what you're talking about here with medicare advantage and obviously denial of coverage, where, you know, earlier i mentioned bill ackman, who's been taking shots at the company. they have been responding. i know you have reporting on that as well in terms of mischaracterization of a dispute that ackman cited in a previous tweet. but he's using this yet again as an opportunity to call into question united health care overall. >> well, it's one of those things where they are the largest health care services company right. they have more doctors than almost anyone else. they are one of the largest players when it comes to medicare advantage. but this is an issue in terms of when it comes to whether it's denial of

care or when it comes to this upcoding higher risk adjustments. it's not just something that people are looking at. united health is something that people are looking at the industry overall. you know, jim cramer earlier said this is something that congress needs to get at. but every time you write legislation, people sort of look at those rules and then they figure out how they're going to run their businesses. and from what we've seen with congress, as they've taken a look at some of these other issues, they haven't been able to actually pass legislation. >> all right. bertha coombs, thank you for your reporting. we're going to turn now to the markets. it's been a volatile week for stocks. and right now we've got major averages not only lower on the day but lower on the week. the dow is on pace for its worst week since january, in part because of the move we're seeing in unitedhealth, which is the second most weighted component in that average. it's trading at one month lows, but our next guest says not to worry just yet, and that despite watching for signs of a slowdown quote,

there is no sign of recession on the horizon. john edward jones, senior investment strategist, joins us now. mona, it's great to see you. and that's exactly where i want to start, because we had two years of just torrid. gains for the s&p 500. and right now, it seems like investors have a wall of worry to climb. so not surprising to see a little bit of a pullback or some skittishness here. yeah absolutely. it's a great call out. >> and look two years. >> of. >> 20% plus gains in the s&p 500. >> and we've actually started. >> the year remarkably well. the s&p is on pace for about a 3.5%. >> gain. >> thus far this year. ten of the. >> 11 sectors of the s&p. 500 are positive. >> for the year. and this. >> is. probably underpinned still by an economy that. >> continues to deliver. >> so we are continuing. >> to see, for. >> example. >> gdp now at. >> 2.3% for. >> the. >> first quarter. >> of the year. we continue to see earnings growth. you know, q4 was probably. around 16%, the highest year on year earnings growth figure since 2021. and of

course, the labor market thus far continues. >> to show signs of resilience as well. >> so all good signs for continued positive economic growth. to your point though, do. >> we see the. >> potential for some softening the uncertainty around tariffs probably does put that to the forefront. but we've also seen companies bellwethers like walmart provide. >> a little. >> bit of cautious guidance. we've seen. retail sales come in softer than expected. so there are some signs of a potential softening in the economy. but barring an outright downturn or historically fed rate. >> hikes. >> which neither of which we see on the horizon, we think the underpinnings. >> of this. >> bull market remain intact. >> okay. so the soft data we got this morning, including flash pmi, existing home sales that were a little weaker than expected. and consumer sentiment doesn't sound like that's bothering you here. we're talking a lot about the broadening out of this rally. what would you be buying right now right here. >> yeah. >> look, i think. >> the theme for 2025 has.

>> to. >> be diversification. if the theme of 23 and 24 was narrow portfolios mega-cap tech, what we'd say. >> is in the us. >> we continue to like both large cap and mid-cap. but this is really across growth and value sectors. so when you look at earnings growth for 2025, it's really going to be driven by tech and non tech parts of the market that we think supports the ongoing broadening broadening of sector leadership. we also within the investment grade bond portfolio look yields are around 4.5% still on a ten year treasury. so for those of us that are maybe nearing retirement or looking for income, that is a pretty good ten year, almost risk free yield to lock in. if we get above 4.5% again, could be a good time to extend duration as well. and international equities. they have started to show some signs of life. we still continue to. >> see. >> outperformance coming longer term from the us. but the idea of diversifying and having some exposure to those parts of the market as well really has paid off thus far this year.

>> yeah. best start. >> for europe in several years, mona. these regional fed surveys all week empire prices paid two year high. philly fed prices paid two year high. just now. you miss 5 to 10 year inflation expectations, highest since 95. i just wonder whether you think directionally yields are set to go higher rather than lower in the near term. >> yeah. >> look i think the inflation story continues to remain one of we haven't yet reached the fed's 2% target. and we are getting you know we have been moving in the right direction. we of course on headline cpi. we're at 9%. in june of 22. we're back down to about 3%. but we do think we could remain range bound in this kind of two and a half to 3.5% inflation environment. the good news probably though, even with the potential for tariffs on the horizon, we don't see a return to kind of a 4% plus cpi environment. in fact, if you look at the fed research 2018 2019, with the tariff

environment, inflation was up one, you know, 10 to 30 basis points. growth fell 30 to 50 basis points. so there is this idea that you could get perhaps some elevated inflation, but not back to the magnitude that we've seen in recent history. and we think markets can continue to perform well in that environment. >> okay mona thanks for joining us. >> thank you guys. >> as we go to break, get a. >> look at. >> the road. >> map. >> for the rest of the hour. ceo of visa is with us in a cnbc exclusive today. fresh off the investor meeting, we'll get his pulse on the state of the consumer. >> plus, elon musk says he is thinking of auditing the fed. what that would actually mean for the central bank. >> and we're going to have more on some of the major headlines here at the fii investor summit in miami, particularly around openai. big show ahead. squawk on the streets. back right after this. >> the 2025 grammy awards are fueling a $106 billion global music industry by 2030, with double digit growth. meet music

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in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways. >> you mean a smart? >> find an advisor@smartasset.com. >> welcome back to squawk on the street. shares of coinbase rallying today. the company says the sec has agreed to dismiss. >> its. >> enforcement case against. >> the. >> crypto exchange. these are the charges filed back in 23, when the sec sued coinbase for operating as an unregistered securities exchange, broker and clearing agency, and for failing to register the offer and sale of its staking as a service program. ceo brian armstrong joined squawk this morning to discuss. >> first of all, just this is a huge day for us and also for the 50 million americans who hold crypto. the whole crypto industry in the world. i think

it's a really important signal that this small group of activists in this prior administration who tried to unlawfully attack this industry, we're going to be able to turn the page on that and finally get some regulatory clarity in america. they're fully withdrawing the case. and so we don't we're not changing anything about the business. we're not paying a single dollar as a fine, which i believe is quite unprecedented in sec history. >> shares of coinbase have gained nearly 350% since those charges were first filed. >> yeah, it's been an interesting one to watch here. speaking of crypto ark invest, cathie wood making some bullish comments around bitcoin at the fii summit in miami. this is one of the many interviews moderated by our very own david faber, who's got some highlights from the last 48 hours. david. >> yeah. >> no surprise there. of course, as you well know, your friend michael saylor also, by the way, been down here evangelizing as always. morgan on on bitcoin. you know, so many of his quotes that gained a great deal of attention. but i want to come back to an interview i did

yesterday with sarah frier, the cfo of openai, at the center of a lot of the discussion here, as you might imagine, around ai, as so many other companies are as well. and that certainly has been one of the key themes that has to be at every conference you go to, certainly one in which, you know, the piff was involved, given how much of the money from that fund has gone to various various efforts around that. i thought, interestingly, yesterday in talking about openai. yes, it's a private company, but it's one that we talk about a great deal, $300 billion post-money value. once that softbank money does come in, of course, exactly where that's going as they transition from a not for profit to a for profit. but the not for profit obviously holds the majority stake in terms of the assets. remember elon musk has bid 97 billion for that. he's been rejected. so many different things to deal with here. but i thought interesting to note when i brought up with sarah frier the possibility of 11 plus

billion in revenues this year for openai. here's what she had to say. yeah, definitely. >> we have not given out our revenue numbers, but thank you for pushing. >> on that. >> but it's definitely in the realm of possibility. we are a company like we did our first billion in revenue two years ago. if you look at companies that define their era like meta, amazon and so on, the year after, they grew close to 100%, we almost three we over three actually. and that momentum is continuing. >> certainly doesn't seem as though she's dissuading anybody from the idea that, you know, i think the numbers 11.6 billion that some have pointed to could be done. and there are those who actually, i've spoken to who own shares or have an ownership position in the open. i believe it could leave this here with as much as a $20 billion revenue run rate. it just puts in perspective. now, obviously, they're spending an enormous amount of money. there's so much uncertainty around their

transition, as i said, to a for profit entity, even exactly what you're investing in right now, if you're a softbank, in terms of how you're structuring that transaction, not to mention musk is firing at them, is suing them. there's also questions on the regulatory front. but morgan and carl, you know, if you take that number at face value it's obviously trading at a far lower multiple to revenues, as is palantir. although to be fair spending a lot as well. and it's not as though it's profitable at this point. >> what's fascinating to me is that i feel like so many times you see inflated numbers in the private market versus what you're seeing in the public market. and so to your point, to see that reversal in terms of how investors are valuing these two companies is kind of fascinating. >> yeah, i thought it was interesting as well. and again, they're very different. you know, now sarah frier did argue that. listen, there are those who believe. yeah, there are we a commoditized business. she answered that question yesterday as well, obviously saying no way. and talking about margins

and what they've been able to accomplish. but if in fact they are able to do that, it would seem, morgan and again, it's not for me to judge, but that $300 billion number certainly would seem to be potentially justified, certainly by those who are willing to pay it right now, including, of course, softbank, which actually is coming in at $260 billion. and that it will be the $300 billion once that 30 or $40 billion does come in from softbank. the numbers alone are just staggering aren't they. it's it is. >> the numbers are eye popping david are pretty amazing. and what a good look at it from the ground there where you are david faber in miami as we go to break shares of ev maker rivian under some pressure after forecasting lower sales for the year. still no date for when the company expects to be profitable on a bottom line basis. and still to come, elon musk, considering an audit of the federal reserve, the latest from washington after a short break. >> cnbc crypto world is

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>> welcome back i'm silvana henao with your. cnbc news update. israeli prime minister benjamin netanyahu said this. >> morning hamas would pay the full price. >> for failing. >> to return the body of the mother. >> of two young hostages. the militant group. >> turned over. the remains of four people. >> yesterday. >> which included. >> the two youngest hostages taken. >> on october 7th. they were just nine months and four years old. >> at the time. >> hamas claimed their. >> mother was. >> included in the. >> return, but israel now. >> says the female remains. >> belonged to an anonymous body. >> closing arguments. >> are. set for today in the trial. >> of the man. >> accused of. attacking author. >> salman rushdie on a lecture stage. >> hadi matar. >> faces second. >> degree attempted. >> murder and second. >> degree assault charges. >> in the stabbing. which left rushdie blinded in. >> one eye.

>> and new york yankees players. can now include. >> beards in. >> their uniform. >> the team dropped. >> a nearly 50 year. >> old. >> ban on facial. >> hair today. >> saying well. >> groomed beards. >> are now allowed. >> the yankees. managing general partner, hal steinbrenner. >> said in a. >> statement he made the decision after speaking with a large number of current and former players. carl. >> thanks very much. let's get to washington. elon musk says he's thinking of auditing the fed. our megan costello joins us from d.c. with more on that morning. megan. >> hey, carl. >> good morning. that's right. that comment coming. >> at a. >> conservative conference. >> in washington last night where musk was asked. whether he was. >> thinking about auditing. >> the fed. and he responded. >> in. >> this very sort of nonchalant manner. >> saying. >> yeah, sure, while. >> we're at it. >> those comments coming. >> after musk entered the stage. >> carrying a chainsaw. >> which he called the chainsaw for bureaucracy. and we're. >> learning more now about a few more places. >> that he is planning to. >> take that. chainsaw approach. >> one is. >> the. >> postal service. >> trump is planning.

>> an executive order now that would fire the governing board of the postal service and put the agency within. >> control of. >> the. >> commerce department. that's according to the. washington post. and the ultimate goal here could be privatizing the postal. >> service, something. >> that we know trump and. commerce secretary lutnick have long. talked about. it's not clear whether. >> this is. legal or really how. >> far that it might. >> go, but it. >> could disrupt. >> in the meantime. >> not only the mail service, but also broader. >> e-commerce and. >> companies like amazon that have long. relied on it. this also comes two guys. >> reporting, that the irs began firing. >> 6700 employees yesterday. >> during the tax filing season. and we. >> can also report that 18 federal. agencies now have a confirmed d.o.j. presence. >> and that the. >> white house is looking to cut about 240,000 workers in total. that's about. 10% of the federal workforce. and guys. >> a court ruling. >> yesterday we know. >> now will not slow down. a federal judge told a group of. labor unions that were looking to stop the mass.

>> firings, that he. >> was sympathetic. >> to their argument, but that federal court was. not the. appropriate venue for. >> their complaints. >> a separate group of unions responded by filing a new suit in district court, alleging that the. firings were made on false pretenses and that they violate federal law. so more to come on that front. in trying to slow down musk and his allies. and finally, guys, i should. >> also note that bloomberg is now reporting a. >> new executive order. >> will be signed this afternoon. >> on digital. >> services taxes. >> this is an order, bloomberg says, that would open the door or allow the u.s. to respond to digital services, taxes that are used in europe and other places, and used to tax tech giants that would allow the u.s. to respond with tariffs to. those taxes. so we know president trump. >> is. >> set to sign executive orders. >> later today. >> more to come on. exactly what that will look like, guys. >> it will be i mean, move fast, break things. that's like the mantra here. i feel like in this government. and perhaps unsurprisingly, i mean, there's also the washington post report about the us postal service and potentially bringing that into the fold at commerce, which

would raise lots of questions about legality and constitutionality. white house already out saying, no, this is not true, and there's not going to be an executive order on that. so we'll see what shakes out there. i'd also just note that that chainsaw was gifted to musk by argentina's president, javier millet, who's been, you know, busy cutting bureaucracy in his own country these last couple of months. but i'm wondering, megan, if you've been following any of this mar-a-lago accord stuff, which seems perhaps, maybe unlikely, but is getting some attention among investors and on wall street, this idea that trump could force some of the us's foreign creditors to swap treasuries into ultra long term bonds to ease the country's debt burden. is this something that could potentially have legs? have you looked into it at all? >> it's the kind of thing that we hear from. this administration, and you have to kind of. see how often they're. >> bringing it up and what sorts. >> of forums it's coming up. >> so i. >> think at this point, it seems preliminary from. >> everything that i've seen so far. but you never know. i think with this administration so often, both now and in the first

term, we were seeing things that were cast off as just wild ideas that did have. >> legs. >> some of them that seemed like solid ideas that didn't move forward yet. so to a little preliminary on that front, i would say for now. >> okay, megan cassella, thank you. and as these efforts continue, of course, yesterday i sat down with exclusively with the ceo and chairman of lockheed martin, the top defense contractor, jim taiclet. and one of the questions i did ask him was how he views doge, especially since the election, we've seen defense stocks sell off in large part because of concerns around it. >> and i think that doge also the president's new team, a bunch of people with new ideas and an open mind, including the president himself, will enable us to finally get that systemic change going in this country and among our allies to have a more effective and efficient national defense. so i'm i'm encouraged by this, and i'm looking forward to working with them. >> 11 minute interview. you can catch the whole thing online. we

covered quite a bit of ground, including competitive landscape and also how he's thinking about the defense contracting business model in this new environment. it's worth noting, carl, that we have seen a lot of reporting on the supposition that the dod is looking to cut defense. a few things i would say on all of this. the first is that some of that reporting was missing some context and nuance. it's not about cutting the actual budget. it's about potentially looking to fiscal 2026, which, by the way, happens with an administration every year, looking to the next year's budget, looking to reallocate 8% of that budget away from what it considers to be low impact, low priority. in this particular case, they call them biden. legacy programs to realign to president trump's priorities and how he's thinking about modernizing the military. so we're not talking about budget cuts here, which we know sent shares of palantir lower earlier this week, and other defense contractors. and actually, if you look at the senate's skinny

budget and what they've pushed through, it's $150 billion boost for defense. and that's fiscal 2025. we know we're in a continuing resolution right now. but either way defense spending is not going anywhere. where it's positioned is set to change though. >> that's interesting. we didn't even talk about the horse. >> race between the senate and the house. >> as the senate gets going on, their voting. >> shut down. >> it's not that not that long away. yeah. still to come this morning, an exclusive with the ceo of visa following the company's first investor day since 2020. shares up about a half of a percent. we're back in a moment. >> since 2007, origin. >> has been. focused on the future, a future that helps you build passive income from real estate. >> when we invest. >> by your side without hidden fees. >> or confusing structures, build. >> the future. >> you deserve. >> with origin investments. >> here you go. >> is there any way to get a better. >> price. on this? >> have you checked single care? whenever my customers. >> ask how to. >> get a better price on their.

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next on the red carpet we have gina costa... looking simply stunning... with this season's hottest accessory. -[ cellphone vibrates ] -oh, what's this? she's opening her fidelity app... to buy that stock... for exactly the amount she wants... no fees or commissions... what will gina do next? gina has roller derby at 6:00 pm. i'm there. get started investing for as little as $1. talk about easier investing. better. >> debt free. >> welcome back to squawk on the street. visa is hosting its first investor day since 2020, in san francisco yesterday. our kate rooney joins us this morning with a very special guest. morning, kate. >> carl. good morning. we have ryan mcinerney, ceo of visa. ryan, it's great to see you in person. thanks for being here. yeah. >> it's great to. >> be here. >> thank you. and that was your first investor day as ceo. so it was a big milestone for you. there was a lot of excitement. i

was reading through some of the wall street reaction this morning. i thought one of the interesting takeaways was sort of this balance for visa between growth and investing, but also maintaining the dividend and returning money to shareholders. talk about the strategy for visa, what you explained to investors yesterday and that sort of balance growing quickly, but also maintaining sort of the safety play of visa that a lot of investors go to this company for. >> i think what investors. >> left with. yesterday was. >> a very. >> clear view of a compelling strategy, a business. >> that's become much more. >> diverse. >> a business that has generated really strong financial results consistently for years now. >> and to your. >> point. >> has. >> generated significant free. cash flow. and delivered more than 100%. >> of that. >> free cash flow. >> back to investors. >> and you wrap all. >> that together. >> it's a very compelling. >> strategy with. >> huge opportunities ahead. >> of us. >> and then you have this sort of subscription, almost saas type business, $9 billion. at this point, it's sort of a maybe underrated or people don't necessarily know about that, that value added side of the business. talk about that strategy. it's not just swiping

credit cards and debit cards. it is sort of this growing saas business. maybe talk about the opportunity there because it is something investors are excited about. >> very excited. >> what we've essentially done is we've. >> built a. >> visa payment stack built. >> on. top of. >> visa net. >> and. >> our. network of networks. >> and on top. >> of that. >> what we explain to investors is we build visa as a service. we've unbundled our services and. componentised them. >> and. >> delivered them to clients all over the world. and we now have a close to $9 billion vase. >> business. >> value added services. >> growing consistently. >> year after. >> year. >> at 20%. >> 20% plus. >> growth with very attractive margins. and it's. >> a very, very. >> global business. so yeah, investors. >> really wanted to. understand what is that, how does it work. and we. >> went to a lot. >> of. >> depth with them yesterday about that. >> these are the tech company. well let's talk about the consumer for a second too. we've got retail sales slumping. walmart sort of had this tepid outlook. and then we got services pmi. there is sort of this concern about the health of the consumer, what it means for the economy. what are you seeing from your seat at visa right now? >> when we. >> look back.

>> over. >> the. >> last couple of. >> years. >> i think there's been periods. >> of uncertainty. >> there's been periods of confusion. >> there's been periods. >> where everybody's kind of. said had a lot of confidence in what's. >> going on. i think in times like. >> this, what we can add to. >> the. conversation is what are the facts? >> what are we. >> seeing in. >> terms. >> of broad. >> based spending on the visa network in the us and. >> around the world? and we see a. lot of strength. you know, in the fourth calendar quarter, we saw spending growth in the united states of 7%. that is up from where it had been previously. and actually in december, we saw even acceleration above that with strong growth, growth in discretionary. >> spending, strong international spending at 11%, strong. cross-border spending. >> around the world. >> so. >> you know, when we look across the world right now, we see a lot of strength in. >> consumer spending, tariffs. >> how did you politics play into this. and is it changing your forecast for that strength. >> we're going to have to. >> see. >> how it plays out. we really don't have a sense of what's going to happen. so we'll see what happens and what the administration decides to do. and then we'll be able to adapt our business appropriately. >> we are sort of in this new world order as well. i think about foreign policy. russia is

a region where you used to operate. there is seemingly more of a warmer diplomatic relationship. trump has signaled he may meet with putin if sanctions are removed. if russia is open for business, could visa potentially go back there? >> i think here too, it's just. >> too early. >> to tell. >> we'll have to see how. things play out. >> navigating politics, do you? i mean, you and your predecessor, al kelly, have been just notoriously diplomatic and neutral on seemingly all things politics, all of these hot button issues. how are you thinking about it as a ceo now in this more tense environment? things that used to be sort of mainstream, whether it's dei or a variety of other things now are a little bit more divisive. how are you navigating it? >> it's not about being neutral. >> it's about. >> being client focused. it's about being international. we do business. >> in. >> 200 countries and. territories around the world. >> it's about. >> following the law. and ultimately it's about delivering for the. countries and the societies in which we do business. >> we want. >> to be the best way to pay and be paid for everyone, everywhere. and, you know, we're just maniacal about our. >> focus on. >> doing that, doing it well and ultimately in service of our clients. >> and we are in this new

administration. you do have this ongoing d.o.j. lawsuit. any expectation based on what you've seen from the white house, any hope that that might go away? and how are you thinking about it, especially for investors who might be underwriting that? >> we have no. >> idea what's. going to happen as it relates to the suit itself. no new news. we think it's meritless. we think it. >> lacks a clear understanding. >> of how our business and our ecosystem works. >> and. >> you know, we look forward to our day in court. >> ryan, it's great to see you. we'll have you back soon. thank you again. but we'll have to leave it there, guys. morgan, back over to you in the studio. >> all right, kate rooney, thank you. well, check out this mystery chart. it's down about 45% over the past year, but it's soaring more than 30% just today. do you know what it is? we'll find out. and what's we'll find out. and what's fueling that move? when i started walton goggins goggle glasses, i had no idea what i was doing. but godaddy airo does. using ai to build a logo, website and social content. so i can let the world know, if your goggles ain't goggins, they don't belong on your noggins!

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assembled in american factories and brought directly to you with our complimentary in-home delivery and setup service, which is why over 90% of customers would recommend saatva to friends and family. saatva luxury mattresses made affordable. get invested. join the club. >> jim cramer is an excellent teacher. >> i don't have the time to do this full time for the. >> value that we get. >> the investing club is very much worth it. >> join the club new member savings and soon go to cnbc.com jim. now terms and restrictions apply. >> the cnbc changemakers returns. >> 50 women innovating and driving change across industries. >> find out who has made this year's list. meet the new icons. the cnbc changemakers revealed monday on squawk box. >> let's get to deirdre bosa this morning with some new alerts on the mag seven names morning de. >> hey good morning carl. >> so we are getting some.

>> headlines from reuters. >> on google. >> antitrust issues. >> where. >> there's according. >> to sources. >> says. >> that alphabet's. google is set to be hit with eu. >> charges of infringing on the digital. >> markets act. >> that is the. >> european antitrust regulation. >> dma also says that. antitrust regulators. >> over there are not happy. >> with google's threat to bring back old blue links in search. >> results. >> and that the charges are likely to be sent after dma. >> decisions on. >> apple and meta. this is according. >> to one source. >> the others are, according to. >> several we've reached. >> out to. >> google have not heard back yet, but i will. >> note that we. >> are at session. lows for. alphabet stock. we're down more than 1%. and it's interesting. >> guys. >> because it used to be that some of these antitrust headlines would not. >> hit the stocks that investors didn't think that they represented. >> a real threat. >> that has certainly changed. >> over the last year or so, as. >> lawsuits have built up. and remember, too. >> that the dma. >> the digital markets. >> act in europe, this is more. >> than sort of the speeding tickets. >> that we've seen in the past. >> the penalty. >> can be up. >> to 10% of global revenue.

>> so that would. >> be quite significant. and like i said, shares are at session lows after those headlines. >> all right deirdre bosa thank you. let's get to dom chu with some of this morning's other movers dom. >> hey good morning morgan. so celsius shares right now surging after better than. >> expected earnings. >> results and announcing. >> it would. >> require fellow energy. >> drink maker. >> al-julani nutrition as part of a $1.65 billion deal. the stock had a huge run up during. >> the pandemic. >> but now a struggle with its expansion, and is currently about 65% off of its all time high. so keep an eye on that. for more, make sure to tune in to mad money on monday for an exclusive interview with ceo john field. now, us. listed shares of alibaba also on the move. that's on the wall street journal report that gamestop ceo ryan cohen boosted his personal stake in the chinese e-commerce giant. that stake, said to be roughly about 7 million shares, currently worth roughly $1 billion. >> today's move. >> comes after shares climbed 8% yesterday following better than expected quarterly results there. so those shares up again, and then akamai shares are

tumbling after the cloud computing company reported a weaker forecast. revenue and earnings beat expectations, but the lackluster guidance led to several analyst downgrades on the street this morning. b of a going to neutral from buy, slashing its target price to 100 from 125. analysts there say that a limited near-term catalyst cadre, as the company transitions to higher growth areas like api security and cloud infrastructure services, is in play. so down those years, down 15%. and then telehealth company hims and hers shares plunging 20% today. that's after the fda removed novo nordisk's weight loss drugs ozempic and wegovy from a shortage list. hims, which jumped into the glp one space last year, has seen its. >> shares rise more than. >> 400% in the past year. >> novo shares. >> up about 3%. >> on. >> today's move, so keep an eye on that big move in health care. carl i'll send. >> things back over to you guys. >> so many double digit movers this week on earnings and other news. thanks, dom chu. >> just a few. >> days away from the reveal of cnbc's annual change makers list, spotlighting female

leaders making an impact across the business world. our julia boorstin caught up with change makers from our inaugural list who've been making some waves this year. morning, julia. >> good morning to you. well, one of our inaugural change makers, instacart ceo simo, has transformed the business from the poster child of a money losing delivery app to a profitable and growing tech platform. since she took the helm in 2021, the stock is up over 80% in the past year. and simo, who is also on the boards of openai and shopify, explained how she's diversifying instacart and leveraging ai to grow. by joining forces. you can win even faster. like when we join forces with grocers, we give. them technologies that would take them years and extreme capital commitments to build. whereas with us, we make this big r&d investment that we then amortize over 1500 grocers. so we really give them super powers that they couldn't get on their own. we are at an incredibly interesting

moment in time where ai is going to generate so. >> much. >> economic growth. and i think that's going to impact both the day to day at instacart. we are using that to help people figure out what to put on the table for dinner, how to figure out how to eat healthier and use ai to really guide them through this, these choices all the way to, you know, grand challenges like scientific breakthrough. >> for my full. >> interview with fiji simo, go to cnbc.com change makers and tune in. monday we'll reveal the 2025 changemakers list on cnbc.com. and first up on squawk box carl. extremely cool. one of julia's many lists that we need to pay close attention to. julia boorstin thanks. as we go to break check out some of the biggest laggards. our winners on the week. smci is definitely at the top. what a week it's had. addy microchip texan lot of chips and hasbro on the top five. still ahead the ceo of imax is with us. we'll get his read on the box office, the consumer and china when he joins

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amazing and is something that we get to use every day. >> welcome back to squawk on the street. no consumer slowdown in sight. that's at least according to imax. the company forecasting a record 2025 of over $1.2

billion at the box office for the year. and writing they've seen a dramatic turnaround in china. richard gelfond joins us this morning. richard, great to have you as always. good morning. >> good morning carl. >> nice to see you. >> before we get to china, i am curious to get your thoughts on the north american consumer, because it's been a. week of walmart guidance and some disappointing michigan sentiment numbers. what are you seeing. >> at least for the movie business? carl, i think it's going to be a very strong year. the first thing that drives that is the slate. and this year is really an embarrassment of riches. you know, we haven't really hit stride in it. capt. captain america opened this weekend and did pretty well. it did $100 million globally. but you've got mission impossible coming. you've got formula one starring brad pitt. you've got avatar at the end of the year, which, you know, the biggest movies of all time. how to train your dragon, zootopia. i mean,

it's a real, i'm sure, jurassic world. so i think that sector is going to be very strong. and, you know, we don't have a lot of data points yet because it's early in the year. but i feel quite confident. and we're predicting a $1.2 billion box office for imax, which would be by far our best year ever. >> right, right. and we we've talked a lot over the years about imax punching above its weight, as some analysts like to write. and you've definitely drawn attention to the strength of the slate coming up. what about china? what accounts for this turnaround that you're seeing? >> so i brought you my friend carl from china, flown in especially for you. this is naja. and naja is a well known ip in china. and one did very well. but the two. the results are kind of crazy. so it's the first film ever that's done over $1 billion in one country. it's

up to $1.6 billion in its first week. and for imax, you know, we've had extremely positive results. so we're up to about $135 million again in less than a month. it's our biggest film in china. we've done more box office in china in the first six weeks of this year than we did the whole year last year. i mean, this will be one of the biggest global movies of all time. and it's kind of interesting because last year in china was somewhat of a weak year. and this year china not only has the hollywood slate, but it also has, you know, a number of top tier chinese local titles throughout the year. and that it ends with avatar. and i have to tell you, that's unexpected. i mean, we knew it would bounce back a little bit and we predicted that, but we had no idea the numbers would would be like this. it's doing like $100 million a day. and

again, to your point of punching above our weight. i mean, last night we were 13% of the box office, and our best day for the movie was three weeks in last sunday. so it's a phenomenon. >> yeah, i feel like ten, 20 years ago, richard, we were talking about the end of moviegoing and the end of the box office. and then the first digitally native generation grew up and became young adults, and all of a sudden they wanted to get out of their houses and away from streaming. and i think this raises the question, have we have we reached a new normal? can we say we're at a new normal in terms of what the box office looks like and what it takes to attract people there? case in point, the fact that an imax screening of a movie might be more compelling than just going to a plain old movie screening. >> yeah. so, megan, i think the end of your question enlightens it, which is i think although box office is coming back strong. the composition is a

little bit different. so there's a bias towards original content. like last year. oppenheimer. good to talk about around oscar time. dune. as i said this year we're doing formula one. it's kind of new ip. and there's also been a movement towards premium content and obviously imax on the top of the food chain. so our global market share has been increasing significantly over the last couple of years. so i think the point is we're at a new normal, but with a slightly different mix in terms of the kinds of content and the way consumers want to see it. and that's still evolving. >> well. >> we're going to definitely stay close to you if we can, as we approach memorial day and get into summer and see how some of this slate hits the screens. richard, have a great weekend. it's good to see you as always. >> thank you carl. see you soon. >> richard. >> it sounds like you're over winter. >> yes. >> aren't you? >> it's the. >> worst time. the holidays are

over. waiting for it to get warm. meantime, not far from session lows on the dow again. unh is a big piece of that with that story out of the journal. but we are down 400. and s&p trying to make this a positive week. still around 6080. money movers begins after this. >> 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 >> 10% below msrp for an average of $5,700 under msrp. (shower water runs) (♪♪) (♪♪)

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itself. >> join the club new member savings and soon go to cnbc.com. join gym now. terms and restrictions apply. >> good friday morning. welcome to money movers i'm carl quintanilla with morgan brennan here at post nine of the new york stock exchange. today the fed has started to be more vocal about the uncertainty and the unknowns of this new administration's policies. what are the potential consequences of those unknowns as the fomc debates its next move? >> plus, unitedhealth. sinks on reports the doj is investigating its medicare billing practices. we're going to look at what it means for the company and for the industry as a whole. >> layoffs have started at the irs. with filing season. >> now underway. >> what could the impact be on audits, on collection enforcement, and on your filing? we'll talk about that. got some weakness in the markets this morning. part of. >> that on the. >> dow certainly being moved by unh. almost down 8/10. but the