>> sarah. >> i don't know. we have a former treasury secretary on and we you know, we can talk forever, but what are we going to do? it was good to have you on. we'll have you on again. keep it short today. have you on? hopefully soon. again soon. okay. >> all right. that does it for us today. make sure you join us right back here tomorrow. right now it's time for squawk on the street. >> good monday morning. >> welcome to squawk on the street. >> i'm carl quintanilla with jim cramer david faber. >> all back at post nine of the new york stock exchange. the bulls going to try to get something back after the worst day of the year friday. cutting the s&p is year. >> to date gain. >> in half. big week of earnings with nvidia and salesforce watching ukraine. >> german elections. >> and the house budget roadmap begins, though with apple's. >> anti-tariff play. >> announcing plans to spend $500 billion to greatly expand domestic chip and server manufacturing. >> in. >> the us. echoing a similar move during the first trump

administration. >> plus, of course, on friday, all the talk is the trade cooling. a note from td cowen later that day suggests that. microsoft is cutting ai data. >> center spending. >> that certainly. >> helped that sell off. >> but we've got the response in. part from microsoft's ai ai, which could change the view on ai. and a doge push back elon musk demanding federal employees document their work. >> or risk termination. >> several agencies. >> though. >> now reportedly telling the workers. >> to. >> ignore the request or at. least wait. >> to reply. >> let's begin. >> though, with the. >> markets looking to bounce. >> back from friday's sell off, the dow and the nasdaq now in. >> negative territory since inauguration day. jim. in fact, since inauguration day. >> the us is the. >> worst performing g7 etf. >> yeah. >> look, i can't help but think the money is being. made in europe. overnight you come in, it's like, holy cow. they're doing pretty good. japan's good. thank you, warren buffett, for verifying that. china obviously on fire. plus 20%. >> and us.

>> well, if the president, the first president cared about the dow, i think. >> if. >> you looked at the. >> averages. >> david, what. >> you would say. >> is people are very. >> confused. >> particularly in the. >> russell 3000. >> which is small business. and they don't want as they're just certainly less happy about things. and they're taking out that lack of happiness on the market. yes. friday. i thought friday was a really bad day. >> i mean, it was. >> i came home, i wanted a cocktail. i spent a long time. >> you're not alone. >> i mean, last. >> week was. >> a rough week. any number? yes. it was. you know, people i speak to. oh, just a second. you were. >> in miami beach. was rough. see, it. >> was -20 here. >> no, it was. >> beautiful there. >> it was beautiful there. so how could it be rough? it was rough in the markets, my friend. okay. it was a rough day in the markets. it was. >> were angry. but. but, you know, candidly, no one could point to anything in particular. well. >> we're going to get to it in a moment. >> well, yeah.

>> the calendar stuff. >> the calendar just this overall. well, let's we'll. >> spend. >> a lot. >> of. >> time on that. >> but i get it. >> and you know. >> oftentimes what you. >> hear, jim, is that, you. >> know, all the guys i talked to, their. >> hedges didn't. >> really work. >> and everything. >> you were short actually is what all the all the computer driven and algorithmic driven firms moved to. >> and so you're. >> losing on both sides. just not good. >> i mean, carl, what you. >> look at is. >> until last week, if interest rates were down, it's buy, buy, buy. >> last week. >> interest rates were down. we sold housing. >> really hard off. >> the toll, which, by the way, doug would tell you he didn't really mean that to happen, so to speak. >> we sold. off retail. >> we sold off restaurants. to the point where we started thinking weather. other than where david was. and i start thinking, you know what we're making excuses for? what is a period where people are saying, i thought we're going to get tax cuts. now we hear about his tariffs and doge and emails that say, you got to. >> tell us. >> what you did this week and what the heck is going on in our

country versus germany, where the rearming versus china, where they turn pro business. is this new? is this new administration anti-business? >> you this morning or actually last night when you saw. >> the. >> futures open positive said you'll believe it when you see it. >> yeah. well i mean, look you take in video which. >> we're going. >> to talk about. the long knives are out for nvidia in the sense that no matter what they do, there are people i mean and the defenses that we're getting from nvidia, there's overwhelmingly a sense that, you know what. that was then and this is now. and nvidia is just okay. and give us something new. no one can find anything that they like. david. yeah i mean i no one's likes anything. >> no one. >> likes anything. >> well. >> tell me what they like. >> can view. >> well. >> yeah, but. >> 24 to 27. >> that upgrade by the. >> way, that stock's. >> not even any good. they like robin hood. >> robin hood. >> yeah. got a headline like like a coinbase. >> headline this morning. >> yeah $84 trillion. >> although even. >> coinbase then. >> on friday had very positive

news from the sec. >> dropping that investigation. >> then you had the largest. >> theft of. >> of crypto of all time. no. >> and everything turned around. >> what was that? >> $1.5 billion. the bybit hack? yeah, 1.4. >> yeah. i just thought that the most telling thing was that the banks. >> were terrible. >> the banks were really down. >> and that's just a reflection. >> overall of. >> economic unease or. >> or unease, even though, frankly, we're not seeing a rise in delinquencies. the article in the journal today about the idea that for finally getting excess home inventory is what the fed wants, it's what you want, right? and then we have the we have that key gauge at the end of the week. it's almost as. if the fed you know, what we really care about right now is the. >> morass of washington. >> look. >> look. it's entirely. >> possible that paul krugman is wrong when he said that doge was theranos. that's a comparison that i found. >> i was. >> not familiar. >> with. >> with his writings. >> on that. >> but i don't know. >> he's still around, is he?

>> he's kicking around. krugman. >> yeah. >> where do you find him? >> he's got a substack. >> yeah. >> is that what it is? >> he's with. i don't know. >> right. >> but. >> so, you know. >> whether it's paul or the. times or all the major outlets over the. >> weekend, i think. >> the times said doge, at least their. >> their. >> metrics on savings riddled with mistakes. yeah. the five biggest. >> cuts. >> on their website, in the times view, were all incorrect. >> well, well, i mean, the numbers were the disparity what, 2.5 billion versus 55 billion. >> well. >> and they i don't. >> believe they had. >> corrected the 8 billion versus the 8. >> million mistake. >> that's. >> well, i'm still waiting for. >> you to say. they they haven't tackled social security. >> they haven't tackled medicare. they haven't tackled defense. go ahead. >> okay. they haven't tackled. >> the main thing, the. >> things that contribute. >> well it's true. >> right. medicaid. medicare. >> she was a usaid. i mean, what are they going to go after? there's no. >> doubt, you know. >> where where are we now with pbs? we got rid of that. jesse

james. it's the. >> hack list. it's where the money is. >> the hack list. not challenging any of the entrenched interests. no. right. no. >> some of these town halls over the weekend might argue differently, but i get your point. >> well, i just think that we all know what how to lower the deficit, but no one wants to do it. >> oh, yeah. >> extend the retirement age. >> yeah, she got to take it. >> to what? >> to 79. you got. >> to take whatever you want. for somebody who's 45 and lower now. >> i mean, come. >> on, man. it's just that hard. >> i agree. tell him you can't take the money until 68. medicare. we got to find out what at least, right? >> i mean. average life. >> expectancy is 79. 79. now. medicare. no one. i mean, we just presume that that's just riddled with waste, right? what happened to the attacks on the pbms where? i don't know what? well. >> this goes to. >> your point. there's so much happening right now, but it's very much unclear on so. >> many different fronts what any of the impact. >> is truly. >> going to be. >> and so it becomes a difficult time. >> in which.

>> to measure. >> right. >> so many things. did you get david's email. >> about how he did what. >> he did last week and how he did? >> david faber. >> well, yeah. >> 110% of everything. >> i did, i did. >> i wrote. >> my email, as i. >> always do. >> right. you guys didn't get it. i thought. >> i said no. >> i mean, but like i said, i'm 115%. i mean, come on. i think there's a lot of infinite like very infinite. >> forum at the guys. >> i think. >> i want to move on to microsoft because that was substantive. yes. thank you. and it was such an important. >> component of the trading on friday. >> in particular. >> this. >> note that we already. >> referenced and you. >> know, about the title of which was channel. checks and this was a td. note indicate us. >> data. >> center lease. >> cancellations by microsoft. >> there was. >> also some. tweeting going. >> on or whatever, posting. >> on x and. >> any number of. >> things that. >> really did contribute. >> to concerns. >> yes. because those concerns have been. >> abundant for some time. namely, we've talked. >> about. >> them so often here. is there a possibility that. many of the hyperscalers will start to look

at the return. >> on investment and. >> say, you. >> know. >> maybe we've. >> overdone it a bit? >> and. >> you know, we. >> all know how. >> much money. is already potentially. >> in the pipeline. but when it comes. >> to. microsoft in particular, remember they. >> chose not to continue to be the sole. >> partner. >> for example. >> of openai. >> the stargate. >> project. >> using new partners. in order. >> for them to expand. enormously the number. >> of data centers. >> they have at. >> their disposal. >> and so, i guess microsoft. >> in particular, there would be those questions. >> so when. >> you saw. >> a note. >> like that. >> it did spark. >> at least a. >> lot. >> of sort of it continued that. >> concern at. >> an. >> even higher level that. >> had already been there. >> but this. >> morning, guys, we really seeing a fairly significant refutation of. >> the. >> note itself. >> yeah, apparently. >> jefferies was in australia with microsoft's ire. and they said to jefferies here, this is our response. you can use it. >> and, you know, they basically

said we were. >> we're refuting this. >> and the broker report, this is one of the parts of the note have misunderstanding about what. >> we define as leasing. >> deals over 15. >> years in length. >> the underlying. >> owner. >> the data center. >> servers, is not microsoft, but they operate it. what i've also heard from people in the in this area. >> that i've been trying. >> to learn from for now, a year or two years is, you know, a lot of it. >> has to. >> do. >> with. >> power, as we know. and if the power. >> is not. >> coming. >> we're. >> not going to be available at a. >> given data center. then you're. >> going to say, well, we're. >> going to move somewhere else, right? >> and so you're going to maybe terminate the lease there, but you're. >> not giving up. >> the overall, you're just. moving somewhere else. >> and so you may consolidate. >> you may. >> move to where. >> there is. >> the power is going. >> to be delivered. >> as was promised. >> but it doesn't. >> mean that there's a diminution in. >> the overall space. >> totally. >> that seems to be where we are, right? >> that's right. now, david, you are down there in florida. i wanted to know, is there a sense that if microsoft is doing all this, it would help? its now

what looks to be enemy of microsoft sam altman. >> you wait. you think openai. >> is an enemy of microsoft? >> i'm starting to. >> feel that way. strong. i'm starting to feel that way. i mean, satya. >> has been nadella has been committed to at least 80 billion. many of the. >> analysts who follow the company. expect more than 80 billion in capex. spending this year, perhaps as much as. >> 90 to 100. but again. >> this does play to. >> those fears. >> the td. >> note, you saw the implications of. >> that on friday. >> in terms. >> of some of the. sell off in the related names. go ahead. nvidia, which was at 139 and when this leaked out went to 135. not everybody had the note. yes, the note had tremendous impact because it was friday afternoon. we kept thinking we were all searching like, what's wrong, what's. >> wrong. >> what's wrong? and it turned out to be a note that was then refuted by microsoft, which. >> again to point. out jefferies. >> they say that they're on the. >> road in australia with. >> them now. it's interesting. >> to think that they even. >> go to. >> australia to begin with. >> but so. >> but because it's tiny. no, it's just i mean, i didn't. >> know the capital markets. >> were. >> that. >> that. >> great.

>> importance there, but. >> great. >> but they. >> simply say, listen, they make investments based on a ten year view on demand for cloud native demand. >> they tweaked their forecasts. >> up. >> and down. >> on this. >> over time. >> on a. >> regional basis. >> depending on. >> which regions need to be prioritized. and again. >> it also. >> may have to do with. >> the availability. >> of power. >> so i. >> don't know. jim does. >> everything now just. >> come back and everybody says don't. >> worry about it. i mean, i'm i'm struggling with the idea that if nvidia goes from 140 to 135 and then bounces to 137, whether that really is something that makes you feel great ahead of the quarter, i'm looking forward to the quarter. and there's questions about blackwell. ben righteous has a fantastic note out today from meli is saying this is nvidia's time. it's entirely possible. it's nvidia's time. but i get this ennui, carl. there's an ennui about these names that is just so palpable. it's like they don't want to. talk about mag seven. it's just like we moved on to a another movie. >> well, maybe. >> it's best.

>> just to listen to what. >> nadella himself. >> said last week. and that is, quote, there will be an overbuild. >> it's not. >> just companies deploying. countries are going to deploy capital. i am thrilled that i'm going to be leasing a lot of capacity in 27 and 28. he's a renter. >> well, i mean, snowflake's gone up and that's a renter. you can rent that. >> right. and we should. >> point out. >> many of the hyperscalers both. >> commit this enormous. >> number of capital. >> but then. >> they also. >> are doing that. >> the leasing. >> or the. >> facilities are actually. majority owned by private credit, whether it's apollo and they're paying. >> lease payments in. >> that way. >> so the fact is the numbers are even larger. >> but they. >> can then. >> pull. >> back conceivably. >> although they're signing long term. >> lease agreements. >> so it's not as easy to do. here's what. is missing. >> that i think. >> is. like the i mean, frankly. >> a lot of people who are. really close to this. >> are saying, what. >> the. >> heck is going on? and that's annette. they reported a great quarter. okay? i mean, they had

huge demand, but they had a step down in meta orders. now, there's a lot of reasons meta had this gigantic order bump in the year of efficiency after that. and i come back and say i had and i felt pretty good because she had oracle business. but that chart is horrendous. and no matter what happens that things will. 133 down to 98 it is the gold standard of what goes into a into a data center. and that's killing people because jason. >> is wonderful and fabulous and. >> competitive and people think that, well, she missed the quarter. i don't think she missed it, but i'm just a, you know, a lonesome, i don't know, lone gunman. >> when we come back, we'll cover. >> a bunch of movers. >> we'll look at the berkshire letter. over the weekend, we got starbucks and. >> domino's to. >> watch talks and. >> palantir. >> tesla, apple of. >> course with futures. >> looking for a. >> looking for a. >> bounce back. stay with us. it all started with a small business idea.

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us. >> apple looking to avoid. being impacted by tariffs. >> the company announcing. >> it plans to spend and. >> invest more than. >> $500 billion on us expansion over the next four years. that would result in about 20,000 jobs. several states. >> are slated. >> to benefit, including texas. apple says it will build an ai server factory in houston, and that all comes days after. >> tim cook. >> met with the president. guys, streets trying to plug some of these numbers into their models, right. >> i think that we had a couple of them. ubs was the first, and it was a skeptic. that's been the wrap call. so skeptic i mean you look at the expanding its texas, california, arizona, nevada, iowa, oregon, north carolina, washington. so you say to yourself okay, all it is expanding. i actually want to go a little step further and say, you know what? these are commitments. we can we can dispute them. but they are hiring an additional 20,000 people at apple, majority focused on r&d, silicon engineering, artificial intelligence, machine learning. if you commit to 20,000 you're

app you're going to do 20,000. this is apple, >> right 20,000 additional employees. >> they got to find them now according. >> to the ubs note which we just. >> gotten a hold. >> of. >> that would. that would. >> grow their employee base by roughly 12%. >> over the next. >> five years. >> and they're. >> trying to figure out the. cost of that as well. of course, incrementally open. yeah, opex per. year would go up about $5 billion. but to. >> your point. >> this note from ubs. >> this. >> morning call. >> us a skeptic. yeah, i do feel like carl, we saw similar announcements in the first trump administration from apple, at least in. >> terms of big numbers. and they did get exclusions. >> on the tariffs. >> right. look, i think that you have to play ball. this is a transactional administration. look i mean tim cook is talking about innovation. sure bullish on the market. but there is a notion and i think we're going to have to stop being shy about it and just say, look the president wants this. we're going to give him this. and

that's what the people voted for. and, you know, they want expansion in iowa and oregon and north carolina. i mean, we can't just keep saying, oh, well, so and so got browbeaten. what we have to say is you elected a president. the president says we got to have more jobs. he goes to companies that hire a lot more people. and he says, you got to hire even more people. and apple is one of them. i can't think that what that is some sort of corrupt bargain. it's what you voted for and what. >> you say you. >> voted for. >> well, the majority. >> you mean the 49% of people. >> who. >> cast votes. >> from states? i mean, you know. >> i know that as soon as this news came out, i just think maybe apple's neutral on it. no. apple's down $2 immediately because wait a second. you're skeptical. why why don't you think you're just not spending as much money? but i come back and i just say i am worn out by people who are shocked. what is shocking? i mean, i'm not talking about. >> what we have talked for quite some time about the fact that apple spends far less in capex. >> than do amazon.

>> there's the note we're referring to. >> meta, right? >> microsoft i mean, not even. >> in the same. >> ballpark as a percentage. >> overall of revenues. >> you're talking about what, you know, 3% of revenue a year, compared to 20% at amazon. well, that's. >> why i that's. >> why i say they. >> are increasing. >> i mean, they. >> are increasing capex a. >> bit as. >> a. >> result of this. >> these people, they could put them elsewhere. >> well, this. >> is the note in ubs. >> apple would need to increase. >> leverage materially or reduce the buyback cadence. i think. >> that's. >> what makes. >> them skeptics. yep. >> well, i think that what they're doing is you take a look at what apple has committed to overseas. and they're shifting in here now. it's more expensive to make things here. but i am not buying into that rap. and look i'm not buying the rap that there's nothing happening. i am saying that this is this could be reshoring david. >> no doubt. >> now. >> i mean. >> again, the. >> half a half a trillion number is it gets your attention without a doubt. now don't forget. >> a lot. >> of. >> it has. >> already been committed to. >> and we don't know what they would. >> have.

>> done in under a different administration. >> exactly. no, i do think that the idea that biden, biden. >> was. >> ever talking to these guys about doing this stuff, i mean, we keep finding out from businesses, you say this offline, but did you ever speak to president biden. >> was like. what would i do? >> he didn't want to see me. he didn't want to see me. you keep hearing that. he didn't. >> want to see me. yeah. no, it's different now. >> yeah. he wants to see it. but you have to pay the price. >> correct. you got to. right. exactly right. >> we'll get. >> cramer's mad dash count down to the opening bell. >> futures continue to. >> show a positive opening as we >> show a positive opening as we get top line? this is a quality, comprehensive exam. come again? you asked me to topline it for you. okay. bottom line? well, the bottom line is this is an amazing value. what? get two pairs of progressives and an eye exam starting at just $159.95 at america's best. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought

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heels of venture global, which is which was a disaster. disaster, you know, lng company that vg has just been the black eye. so i come back to you, david, although. >> it didn't stop its its. >> founder from becoming a. multi multi-billionaire. >> no that's okay. >> even now i. >> think we have a problem. >> with oligarchs. >> no, not at all. >> you're right. disastrous ipo for right. >> so what i'm saying to you, david is here. we are near the end of february. we heard that there was going to be this bulge of ipos. and i think i don't know if i've ever seen so few. so what's happening. >> by the way where is the m&a. it's march in a. few days. >> well i mean i know people feel that the ftc and justice department stuck with the rule of law. it doesn't mean how it's administrative, which has been prosecution by the old guys and now discussion. so i think there's. >> an. >> expectation we're going. >> to see. but where is it environment is still better for m&a. it's a great question. >> it is. but no one wants to do it. so you have to help me here. >> i will help. >> you if every.

>> if smithfield. >> foods is. >> the best we. >> can do, which you know, is like pork. yes. well, i mean, what's going on? are they. do they just want to stay private? i mean, look, gensler has been defrocked. the government has not been speaking. >> so hard. certainly worth discussing. i, i. >> david, we have to focus on this because the. >> opposite of what. >> was supposed to happen. let's get the. >> opening bell here. >> on the cnbc. >> realtime exchange at the big board. >> it's hometrust bancshares. >> celebrating its. transfer to the nyse at the nasdaq. >> engine maker. >> power solutions. there's a recent. >> listing. >> hopkins is a power solution. >> and that's been. >> a power stock. >> i think when you talk about anything, it says that the data center, which is the single greatest secular theme of our time, is weaker. doesn't make up by, you know, a celebration. what's happened to me. >> carl, is that. >> we've lost or apparently have lost housing. we've lost data center, we've lost the russell,

the small business, and we've gained a johnson and johnson. >> well. >> you it's some. >> argue it's the year of. >> generating income. >> jim. >> one thing you mentioned the. homebuilders worst four. month relative. performance since the housing crisis. >> incredible. and we finally have some excess homes. we know that the price of a home has come down a lot. but they're very, very wealthy homes. i would say that these became great companies. and there was a belief that they have divorced themselves from cyclicality, and it just turned out to be untrue. and i think there are people saying, wow, i thought that. i thought i could hide in these because there's a shortage of housing. well, if you don't sell any houses that many houses, there's no shortage. >> right. >> and here's a look at starts. >> i don't know if. >> you know these red arrows here. >> those are rollovers in starts. >> and you can see. they precede a recession every time in. >> the last. >> what is that, 50 years? >> well, i mean, look, other

than the price of a couple of things in the. >> supermarket. >> there's a lot of weaker stuff, david. gdp is going has been the forecasts have been reduced. i don't have a lot of companies that have pricing power. >> right. >> i think that look, let's take the frozen food aisle, which has been the hot aisle in the supermarket. okay. nestlé is moving in against conagra. so i mean, we have competition in the supermarket. we've got homes that are building up like fed, fed. you're on hold. because of what? >> because there's. >> inflation in used cars. well, there was there really. we heard carvana making less money per used car. david, i ask you where right now is the inflation other than property and casualty geico eggs. that's it. eggs, eggs, eggs. >> well, we can make a bird flu. i mean, protein eggs. >> but your point's. >> well taken. >> avian flu. >> by the way. we take a look at the tenure backing. >> off from a yield of. >> what was above 4.5% not long. >> ago now. >> but why. >> are we just saying, oh. >> it's intractable? are we going to start having a.

>> conversation about. >> a cut. >> sooner than we think? >> well, i'm going. >> to start to. >> show up in the movement in equities. >> great question. i think that what's going to happen. >> is. >> we're going to stop talking about that. there's no need for a cut whatsoever because we just have too much. too many things have gone down in price in the last few weeks, in the last couple of months, but no one's talking about it because we've all decided that, you know what? everything's up because of the price of eggs. it's barton national, which. >> does the food sourcing. >> for amazon, which is last. i looked pretty good. they've said it's back. there's it's back all the way. there's no food inflation. now i like spartannash more than i like the commerce department. >> yeah. you've been pointing to for example. >> value at domino's. >> but today domino's comes out continued pressure consumer. spend on us comps 4/10. >> i know. look i thought the domino's domino's is the bargain. i'm over and over again. you hear that domino's is a bargain. they do some you know russell wiener's done some fantastic things but they really really missed the seams where they gave a dividend increase, which is nice. but it's not

enough to be able to make people feel better. david domino's is what you buy when you don't have a lot of money. now, i happen to like domino's. i like the banana peppers. i like the app. i don't know, it's a lot of fun, but. domino's is inexpensive and yet people are saying no to domino's. how about the liquor? liquor is expensive and people say no to liquor. >> they have. >> for any number. >> of reasons. we got walmart last. >> week with. >> with earnings. >> and the guidance. >> was. >> what was scary to some. >> and i went to work on that and the guidance was just classic boilerplate walmart. but we all decided to take it as gospel. >> okay, so walmart had whether that was. >> negative sign. >> they did. >> walmart had a very strong quarter. the numbers themselves were it was, but it was the guidance that took the stock down. >> well, i can. >> worried people for the broader economy in terms of demand. >> when you're down. >> in your. >> psyche is negative. when you read the boilerplate worries. >> you say. when you're not down, you say, oh yeah, that's that's the same old walmart. they're very conservative. >> it is worth mentioning. >> i mean. >> look at what the stock.

>> has done as well. >> i mean, you do run into that with many. >> of. these names. >> also, don't you, jim? like why take a chance a lot of stocks. stock has been up so much. >> okay. so i'll give you the answer to that. why take a chance. because the. >> numbers are. >> good okay. and that will matter if the ten year is back to where it is. can't help but bring me back. i'm going. i mean. >> you know i love you, but palantir, i mean, a week ago, you were like, yeah, baby, not a good week there, jimbo. >> i'm reading the book. i'm reading the palantir book. it reads like, you know, it reads like it's kind of a manifesto, a manifesto of manifestos. >> do we have a one week on. >> this thing? yeah, there's a one. >> month, which is. >> a manifesto of going to one. >> year to date, but one week was not was the worst. >> my junior year. people thought it was going, i knew. >> better, you knew better. >> well, you i can't shoot, i can't shoot like like carnival. but right now he can't shoot. >> that was a bad week. >> well. >> yeah.

>> well we've. >> got really. >> get a little more into what they do. >> worst three day drop since 2022. >> wow. >> 40% of their. revenue last year. >> was government related. 22% was army alone. >> i know, and i think what people are really saying sotto voce because they don't want to irritate corp international slowing really big. and he the problem with that is international is starting to do better in in macro and gdp. so what's. >> the problem. >> i think that he didn't get the big dose contract for to reform the defense department. i think he's got a lot of he does have a lot of defense work. and we heard that defense secretary said they're going to cut things by 8%. that was a big precipitant. and more important, he's had two book reviews on our network and i think he needs a third. i think we invite him here, go over the book and go over. >> it, invite him to our book club. >> i think that it's time to talk about martin luther. >> always nice to have the.

>> author come to the. >> book club. >> isn't it, carl? i always enjoy that. yes, well, look. >> he signed the book. >> yeah, let's talk about it. >> we didn't. >> even talk about home depot. >> which is about to report. it is down again today, even though they had, you know, down 50 points, even though you could argue that this supposed to have a lot of fire business and a lot of southeast rain business. but this stock, which of course, david is merely thinking fabled triple top head and shoulders. well, david, it doesn't have to be like that when they report, but it's certainly not coming in hot. no stock can't be giving away right now. and steph stephanie was on this morning stephanie link saying good things about it. maybe i don't know maybe people didn't hear. >> they may. >> not have. i'm going to go back to pouncer. what do you think? no, no not necessarily. i mean i'm just. >> taking a look. >> at some of the, the. >> mag seven. >> and the biggest names. >> sort of coming off the. >> well, this is what i'm the. >> initial highs and this. >> is what i'm talking about. couple of minutes. like i'll believe it when i. see it. the sellers want out. do they know

why they want out? i think they just say, you know what, i'd like to be in greener pastures. i can't take the craziness. sure. so what do. >> you want? where do you. is there a place to hide? i know you said you kind. >> of indicated at. >> the very. >> top of the program. >> not necessarily. well, drug stocks. >> because we haven't heard anything yet from rfk jr. >> oh well we do have. >> apparently he is doing. >> some things on. >> vaccines already. right. >> well we got the page. >> page one dallas. >> morning news today. >> is all. about the. measles outbreak. >> 100 cases in texas. >> and new mexico. >> of the 90 in texas, five patients were vaccinated. so we're going to watch that. >> yes we do. if that makes a comeback, i think that it would be extraordinary, an extraordinary rebuke of anyone who believes that vaccines don't play a role. and i know that we have doctor bourla, who's the most important vaccine person in the country. he's not backing away, but we have the stock of moderna that goes down. that's a great bellwether. that's the barometer of rfk jr, right. >> we also had. >> that that weird.

>> headline friday. >> about the. >> pandemic. >> no pandemic new strain. >> oh, what is that? what does it. >> all mean. >> yeah. when that came out, even though it was old. and by the way, doctor gottlieb, the former doctor gottlieb is amazing. i mean, he came out and just looked. this is old and don't panic. but i think people thought it was new and they panicked. >> the other thing, jim. >> is. >> is employment. >> last week with. >> you, mish. >> highest expectations for higher unemployment since covid. today, starbucks joins the ranks of corporate layoffs. >> yeah 1100. >> brian's doing incredibly well brian. you know here i'm speaking about brian niccol, but the fact is, is that there is a sense that there is fat at starbucks. and i think that 1100 support partners like that was something i needed to know more of a support partner. >> yeah. >> i mean. >> the message. >> is, well, there you see it increase efficiency, accountability. >> you're talking. >> about removing. >> layers and duplication,

creating smaller, more nimble teams. >> there are layers. >> there's just years after years. no one it no one really kind of got broomed there. i just think that brian niccol is doing a remarkable job. he's actually it's interesting, you know, his his actual stores that he's talking about, that he's measuring and he's doing three stores. he's not doing what what they did at panera, where they did north carolina and wanted to look at it that that's that book's not in play. it's not a playbook for. >> what panera did. >> what they. >> i'm sorry. >> they did panera too. >> ron. you're saying he. >> he's doing. >> it smaller or bigger? smaller smaller to see how it works. >> right. because he's got. >> to drive through. he's got to. >> he you know he has the main problem that they have is this first in first out when you get there and you're just shocked even though you see no one, the there's just people ahead of you and a lot of anger. and that's going away because he's a

throughput specialist. i urge you to time your order to when you get it. i've had it three times. now it is four minutes. one of them have been 20 minutes. i also want to want to emphasize that he's going to tack the franchises that are in the airports where, i mean, a lot of people complained over the years, look, i missed my plane because of this darn line. >> you got. >> to really want. >> that coffee. yeah. to miss your plane. >> it's almost. >> like, look. >> i can make it. i don't know if i wait a little longer. i look, i was at an airport and i know there were two starbucks and one had a big line, so i did mobile order. the other one. i got it in four minutes. there you go, jim. you have to be nimble. you do. you have to, like. always be. >> thinking. >> yeah. >> yeah. >> well problem. problem that. >> no. >> i don't do the apples up now. we talked it up. we know it's not. it was down. >> no it's not. >> it's down. wait a second. >> i'm telling. >> you it's down. i'm looking. >> at it. it's down. it's not down very much. >> well it made its comeback. >> how about that? alphabet is

the only one of the. well. >> it made a nice comeback. was it 242 when i. when i got up. >> what time. >> did you get up? >> what time did i get up? later than you. >> the jeans later. what are you wearing? two suits. you got the tops? >> my usual jeans. >> and then a nice market, by. >> the way. very nice. mary approved. >> sports jacket. i think it contour brands. >> is doing. >> things that you cannot believe. no one cares. it is quietly moving up and up and up in those spun up by vf corp. they made an acquisition last week. now i don't know if you guys know kelley h.h. oh, they're kelley handsome. yeah. >> that's the only ski. >> brand we wear. >> yes, they bought it for 900. >> why isn't anyone talking about this? they bought it from canada tire. david, i don't know why. can't necessarily. david, you have h.h. in your house? >> yeah. >> it's great. it's great cold weather. >> i don't hit the slopes too often. >> there's your skier. >> over there, jim. >> you know, who put up a nice defense. >> of u.s. equities over the weekend was warren buffett.

>> yes. >> he did, because. >> he has. >> no natural. athletic ability, no. legal or medical skills. >> he's depended on american companies his whole life. >> right. >> and he. >> will continue to. >> do so. >> i mean, i read the letter and there was a bit of billionaire itis as we know, there's billionaire itis. that means a billionaire is saying, look, i don't have anything to do or it's not so good. there's just other than dave tepper, who's a bonafide billionaire, most billionaires gave it a billionaire itis. they always say it's not as good as they always look at the world like this. it's been great, but it's not going to be great. and then you say, well, why was it great? and instead, well, the reason is because they made it and you're not right. like david, i can tell you, let's say there's an owner of a team. >> yes. >> what owner of a team feels that their things would be better than. >> last year? not many of them. >> not many. not many. and yet they're willing to say that their team's better and their teams suck. >> well. >> oh, you did have a home run. >> first bet. yes. >> so to hit a home run in. >> his first at bat and.

>> i thought of a spring. >> training game, steve cohen did. >> speak at the fii institute conference i attended last week. >> as well. do you have films? >> you want. >> to toss it or something? >> yeah, we have it. >> he was. >> somewhat negative. >> at least on the kind of on. >> the broader. >> economic picture. maybe itis. >> maybe he does. >> although the. >> mets are going to have a great season. >> but take. >> a. >> listen. >> in addition, now. >> you have doge, right. and you know, wherever you lay on the doge issue. >> i mean. >> that's austerity and austerity. you know, when that money has been coursing through. >> the economy. >> over many. >> years and now potentially. >> it will be reduced or stopped and in. many ways has got to be. >> negative for the economy. >> well, if it's through. >> pretty straightforward, simple thought but. makes sense right. >> well, yeah. but so far it's small potatoes but it's usaid. >> it depends. well we've got a. >> we've got a piece up. >> on our website. >> that it could be the largest layoff in u.s. history, and it. >> would filter down.

>> to all kinds. >> of local. >> economies because. of the multiplier. >> not. >> to mention. right. i mean, you cut a $5 million. >> grant to that's part of nih to, you know. >> study whatever you. >> want, right? >> you're talking about a lot of different phds that were part of that. it has that. >> well, you think it should switch over quantum computing. well, see a quantum, you know, maryland professor who actually knows quantum. i did. >> well, you're talking about microsoft last week. yeah. they're announcing. >> his comment. this professor, which i absolutely love. this is where you cross. over from the realm of science to advertising. jay, theoretical condensed matter physicist at the university of maryland. >> that's a nice i don't understand any of this. i mean, when you say you've. >> created a new state of matter. >> that's where i get. >> i'm when i'm lost. >> long before that, of course, but. >> well, i remember that you remember the rod sterling. >> with the dollar. falling down. >> the stairs. >> that was. yes. i mean, it did remind me of the original star trek, basically. >> i think that, you know, look, steve, stephen king knew about it. >> so you're more in the jensen.

>> 20 year. >> 30 year. >> yes. >> i mean, come on. this quantum, we see these stocks go up and those are the stocks that have to come down. if you're going to be bullish you know efficient david fishing. i'm going fishing with some contour brands. >> fishing is. >> the is what. >> i don't know. >> some point. >> there could be a huge breakthrough a lot of money a. >> lot. >> of. >> money in it, a lot of billionaires. >> once you go back to three mile island, you know, come. >> on man, fishing. yeah i, i. >> i live next to rancho seco. that's all i know. a decommissioned nuclear plant when it was commissioned, the only place you got to find a spot when you're living in your car, all you want spots right next to the rancho seco. rancho seco, decommissioned. >> nuclear power plant. >> that's what you want. >> in the 80s or when you were in. >> your car? no, in the 70s. 70s. you're always looking for a spot. let me tell you, when you live in your car, the most important thing is to find a spot. and i'm talking about long

term. >> good, good. >> car, car stereo. >> like. >> no, i had a ford fairmont. but i will say this. >> probably got. >> stolen, right? yeah, it was in the truckers are your best friends when you're living in your car. and i never met a trucker that didn't want to take me in or be nice or buy me a cup of coffee, which is a lot better, by the way, than this coffee that we. >> serve guys. >> finally, just in terms of movers this morning, you didn't want to know what do you got? alibaba, which has had a great. >> yeah i mean. >> you know year to date we're already talking about it up 55% obviously had a very strong quarter. >> they announced. >> these investments. that may be in part why the stock is actually backing up a bit. >> how about the fact that a parabolic move. >> and then there. >> was this. >> spray in part the reflection of the chinese leadership's conceivably moving towards a more progressive stance. >> what do you really think about that? by nike? i mean, what do you really think industry. >> and private enterprise there say. >> again, what do you think about the possibility that they're not just fooling us again? prc now, by the way, there was someone on frank's show this morning talking about

how the housing market might have turned. >> that would be. >> the property. >> market is one of the largest, because if that's the. >> case, you and i are going over there. we're going over there with a couple of bags of. of what? i don't know, like pennies. oh, they got rid of that about condos. condos. we go back with some benjamins and we buy we buy a couple of towers, buy a few. >> condos. >> or you want to buy. >> entire towers. >> buy towers with a couple of benjamins. >> okay. >> all right. >> is that where we're headed? >> that's. he's on 100. got it. >> shanghai. here we go. >> cenote. >> cenote. >> casino. yeah. >> i'm telling you, david, it's our chance. it's our chance to go there. >> happy to take the show. we got to get in on the. we haven't taken the show on. >> the road in a long time. why not. >> start with shanghai? >> i know we have to start one of those outlier cities. >> oh, i want to start there. >> well, look, when eunice yoon tells me that the $7 trillion build up in real estate is now cleared, i'm going to be a believer. >> that that. >> show. >> would make some news. >> i'd be curious to see what.

>> the reaction. >> is on that. we have lost. >> some opening gains. dow is up 60. >> s&p 6022 watch bonds as well. >> not a huge. >> calendar for data today, but we. >> will get a two. >> year note auction at 1 p.m. watching the ten year right around 4.42. stay with us. >> the bond report is brought to >> the bond report is brought to you by pimco, a got eyelid itching, crusties and swelling that won't go away? it could be... demodex blepharitis! and we're demodex mites. we're very common and super irritating to your eyelids... but we love making ourselves comfortable here! oh, yeah...steam time! if demodex mites are partying it up on your eyelids... it's time to eliminate the root of the problem

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mentioned salesforce on their conference call using opentable and the agent force. but no one wants to care. salesforce down another nine. we're going. >> to get. >> seven numbers this. >> week too. >> yeah let's just sell them i mean, there's just ennui about good stuff. that is amazing. i think people just i heard read today. salesforce is overpriced. well, i mean, when it was at 360, no one told me that this stuff that they make is overpriced at 300. it's like overpriced. i mean, come on. i do have agco tonight. that's ag deere has been a standout story. i want to find out whether agco keeping up and then an old friend john fielden. now that's celsius. he did that great deal with pepsico. kind of marked a high. he just bought this company. alani nu. i love john. i think that he is a spokesperson for a very controversial situation, which is celsius. but i don't think there's ever been any diminution of the excitement. i do think that pepsico, when they bought them, kind of put a, you know, a lid on it. yeah, but i can't wait to talk to john because

john is an enthusiastic fellow and we need enthusiasm because the on we can't cut it with a knife. >> jim. % tonight. mad money. 6 p.m. eastern time. s&p has gone red. >> still holding. >> six k. we'll watch the market closely. be back in a minute. >> experience the power of cnbc pro. all new investing tools securely linked to your brokerage accounts. become a smarter investor with the power of cnbc pro. go to cnbc.com now. >> 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. >> the cnbc. >> changemakers list revealed. (grunting) at morgan stanley, old school hard work meets bold new thinking. ( ♪♪ ) partnering to unlock new ideas, to create new legacies,

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pressure on yields. >> the ten year lower. >> again today 4.41. the two year. >> just holding. >> steady at 4.2. >> we're 30. >> minutes here into the trading session. here are some of the big movers. >> we're watching. shares of robinhood under pressure. >> despite some positive news. the trading platform says. >> the sec has dismissed an investigation into its crypto unit, the latest sign of easing regulations for that industry. stocks down though 3.37%. it's been a big winner. shares of domino's. >> pizza sliding. >> after q4 revenue and earnings missed expectations. same store sales grew just 4/10 of a percent. domino's up against stiff competition from fast. >> food rivals. >> like mcdonald's and burger king, which stretched their value. meal promotions to fuel demand. and then watching. >> palantir under pressure again on pace. >> for a fourth straight day of losses, now down. >> more. >> than 20% in that time, giving back some of the enormous. >> gains we've seen over the past year. >> again, the. stock is still up 20% this year and a few hundred over the last year or so. but guys, it's. another big week. >> of catalyst. >> we have. earnings to watch.

>> including the mother of all earnings. >> nvidia in the middle of the week. >> some retail earnings. the big economic. >> report of the week is going. >> to come on friday with. >> pce, which is the fed's preferred inflation measure. amid some questions about stickier inflation and what the fed is going to do next, i'll also be watching carefully consumer. >> confidence. >> which comes out tomorrow. >> from the conference board because. >> we start the week concerned a little bit about the economy. wobbles potentially in the consumer. look the walmart earnings whenever. >> you know, walmart sells off like this. >> whether it was positioning. or just everybody. the guidance. >> really not. >> the. >> earnings themselves. >> and the stock. >> was up 80% in. earnings on the year. but just i wanted to highlight one of the comments because i think this is starting to work through company companies. >> minds and psyches. >> and potentially investment. we're not going to be completely immune to this. we're talking tariffs. according to the cfo, we've lived in a tariff environment for the last 7 or 8 years, and we'll do what we know how to do. we'll work with

suppliers, we'll lean into our private brand, he said. and we'll ship supply where necessary to try to take advantage of lower costs. >> that we can pass. >> on to consumers. so not really a huge red flag for the consumer, although you do always wonder what it means when walmart takes share from every income category, whether that's a good sign or a bad sign for. >> the consumer. >> they didn't warn that the consumer is weakening. >> or anything. >> like that. but i did note that domino's ceo on. >> consumer spending. >> said, as we look into 2025, we believe the combination of pressured consumer spending and a value driven qsr marketplace will continue, referring to what the industry is seeing overall. and then just the friday report on consumer sentiment lower than expected on michigan university of michigan. >> yes, we. >> know this. >> this varies based on your political views, but it was worse than expected. it capped off a week where people were just getting a little more concerned. i think about the state of the consumer. because remember, the economy had been good. we were worried about inflation being too high. so now you don't want to worry about inflation being stubbornly sticky and the economy

weakening. >> we did have retail sales of course, a. >> couple weeks ago was. >> the worst in a couple of years. we have services pmi below 50 haven't done that in a couple of years. these list. of corporate layoffs continues, whether it was starbucks or chevron or southwest. >> and then look. >> at like the srt or or consumer discretionary srt is a really informative chart at the moment. it's going to take you back to say, election day. >> well. >> the two heavyweights when it comes to consumer discretionary. >> amazon and walmart. and so when. >> those break down, you worry about broadly the consumer and you worry about this group. and that's what's been happening a little bit. just a few more charts to highlight your points. carl about some of the data misses the citigroup. >> economic surprise, which. >> basically measures how the economic. >> reports are. >> coming in relative to expectations. >> and there you go. it's lower. it actually turned negative, fell to the lowest level since september 2023 last week. so those are some of the data misses. and then the tariff

mentions. right. this is continuing to be a source of uncertainty for corporate america. you can look at s&p 500 companies and people actually chart this about tariff mentions. obviously it's skyrocketing as companies try to prepare for what it's going to look like, what it's going to mean for their cost structure, what it's going to mean for consumer demand. i do think one of the big debates, guys, is going to be the tariff impact on the economy. everyone was worried about it being inflationary. it might just be a one off inflationary. it might be a bigger problem for demand like demand destruction and the actual economy. last time we got tariffs, you know, the trump administration likes to say we didn't see a big spike in inflation. we didn't. but a few months later the fed was cutting interest rates. i'm not saying just because of tariffs, but there's potentially concern here about the economic impact. again, we don't know what they're going to look like. we don't know how much of it comes to fruition. we don't know how long it's going to last. but that's a potential worry. >> you know sir, it's funny

because. >> on. >> that front. >> two things that. >> we've talked about for. >> a long time now in. >> terms of causing inflation. >> tariffs and or deportations. >> the sense i've gotten is that if you were to follow. through on. a mass deportations, very. >> much unclear whether that will happen. >> that would have a much. >> more. >> significant impact. >> certainly on wage inflation in. >> agriculture, construction, hospitality, certain certain parts of the economy. >> yeah. i mean, we've already had a tight labor market that's been a huge source of labor supply. so if there's a shortage, could push up wage pressure and ultimately become a problem for the federal reserve. and then, you know, we're trying to figure out, like, you saw steven cohen's remarks in miami, does the doge effect have an impact on the economy and on layoffs? you know, if we start to really get high numbers of federal layoffs, government biggest. source of jobs, you know, that sort of thing. so it's kind of wait and see. that's where the fed is. onto how this is going to impact the economy. but clearly the market is a little jittery. and you can see that most notably i think in the ten year treasury yield, which is now, you know, had the

weekly lows last week of the lowest of the year. >> yeah, yeah. >> broke four and a half. >> meanwhile. >> stocks have turned lower this morning. >> after coming off. >> the worst week since the. inauguration actually of the year. but warren buffett saying he's still sticking with equities or mike santoli is tracking all these market moves. we had a discussion this morning off camera mike. about lack of panic on friday. >> there was a lack of panic. it was orderly, but there was a bit of a pile up of factors, all these anxieties, sarah, that you're mentioning about the growth trajectory i do think are well observed in the market right now. it's been a defensive turn. if you're if you thought you were going to get economic acceleration, it's not evident. whatever you do, think about the policy mix, ultimate net effect down the road. but we're front loading the friction, we're front loading the fiscal restraint and maybe something else comes later. so i think all that's built in seasonally, it's a tricky period. i think risk appetites kind of came into the year gangbusters. the retail bid, the high momentum stocks, the speculative stuff. and that also obviously had a big

reversal last week. and i wonder if that's going to just cool off the retail flow just a bit because we really did binge on. so all that stuff is in the market. it's still routine pullback. i mean obviously you're only 3% off the highs in the s&p. but the burden of proof is going back onto those who believe that you know it's kind of all systems go. and the economy is working and earnings are working. pretty stingy responses to earnings reports. misses are really getting punished. beats are not really getting you know kind of celebrated the way they normally do. so all that's in the mix i don't think it's something where you all of a sudden say the overall bull thesis is in question, but the cadence of it has gotten a little trickier at this point seasonally. you know, this is also, as we've talked about when things start to roll. >> well, mike, for somebody who i know keeps. >> a close. >> eye on berkshire, i mean, i'm just curious. >> we didn't learn that. >> much about. >> the use for the cash position. and i know he said, well. >> i've still got a lot. >> more. >> in. >> equities, but. $330 billion. >> is not.

>> an insignificant sum. no. and i don't think anybody should have expected him to really elucidate what that's about. it's happening passively. in other words he's not sitting there and saying we really need to build cash. but if you're selling the generational highs and valuation in apple to trim that position back from being way too big in his equity portfolio, which he did, he likes to sort of get back below certain thresholds for the bank stocks. so if you're a net seller of equities, you don't really see compelling value. i really think the orientation is strongly in the direction of buying a whole business and not just buying large positions in publicly traded stocks at this point. then you layer on the idea that there is a transition coming. i mean, lots of explicit acknowledgments in his letter that he's in wind down mode, right? he made a big extended joke about how he uses a cane. now they're shortening the q&a at the shareholder meeting, and he's obviously said, greg abel, he's going to be in great position to take this. maybe he wants to actually hand off a company with maximum flexibility and optionality. with that cash.

>> position. >> most the. >> stock go down when warren finally. >> leaves the. >> scene at all. >> is it an. opportunity to buy back a lot of stock? >> well, that's. >> another piece of it. they bought zero stock back in the last quarter and that just shows you it's a rich stock. but one of the reasons it's a rich stock is because it's so defensive. so much of his earnings, like 40% of operating income is passive. its interest and dividends from the insurance business, from all the stock holdings. so it's like nothing it's bulletproof at this point. in terms of downside, i do think you could take some information out of the fact that he doesn't see anything to buy. i mean, we know what the leverage isn't. >> it? more than. >> that, he has been a net. >> seller of. >> stocks for several quarters. >> that's what i was saying. but he's mostly selling the stuff that he feels like he's either gotten too big or too rich, as. opposed to kind of across the board. still likes to japan. again, look at his entry point. you know what i mean? he he still likes coca-cola. would he buy it at. i bet you his dividend yield of coca-cola is 100%. right. so what did he buy? american express is 20% stake, right? so he loves these businesses. he doesn't necessarily love them at today's

price to add a lot more capital to them. >> and things like bank. >> of america was an infinite return. >> practically, given what he had in terms. >> of how much he collected. >> in terms. >> of preferred dividend. yeah, no, no doubt about it. i always go back to one of his better analogies, which is, you know, he's he's a hitter in baseball and there's no called strikes. there's no penalty. he views for just letting them go by and not taking a swing. and that's what he's been doing. thanks, mike. okay. >> all right. let's keep the eye on. >> apple if. >> we can. >> of course. >> talking about berkshire. >> there which had. >> been the largest. well certainly still is. >> very large holder. the tech giant is planning. >> to open an. >> ai server. >> factory in texas. >> this is part. of the announcement, at least of a massive investment. >> in the us. >> deirdre bosa joins us. she's in. >> san francisco. has more. >> for us. on exactly. >> what's behind this plan. deirdre. >> hey good morning david. so let me give you a few more details. >> investment of half $1 trillion. >> over the next four. >> years. >> pledging 20,000 jobs. >> and that. >> comes less than a week after tim cook met with. >> president trump. now. >> trump was quick to front run

the announcement at a press conference. >> last week. >> on friday, saying that apple was going to build here instead because they don't want to pay. >> the tariffs. so really drawing a line there. >> and again today on truth social, the president posting the reason faith in what we are doing, without which they wouldn't be investing. >> $0.10. >> which is where. >> it certainly becomes a little muddy. >> apple has long. >> been touting investment here in the united states. >> here's a press release. >> from. >> 2021 during the biden. >> administration. >> where. apple pledges $430 million. >> in. >> u.s. investments. over five years and exactly 20,000 jobs. >> and then. >> back in 2018, similar commitment. >> for $350 billion. >> raising the question how much of the latest. announcement is new? how much. >> is. >> it a repackaging of previous commitments? ubs poured some cold water on the idea of this being new. >> writing in a. >> note this morning. >> while the headline figure on the surface. >> is a large number, we believe it lacks substance. >> at this juncture. >> based on history. >> it also points out that apple's infrastructure strategy is very. >> different than. >> that of the hyperscalers. apple spends a lot less. it estimates. $10 billion versus

roughly. >> $200 billion. >> for meta. >> microsoft and amazon and google in 2024. >> and that in turn. >> has to do with apple's. >> ai strategy. >> which has always been very light. >> on infrastructure. >> and focuses on on device ai or edge ai. >> leveraging its. own silicon. >> and leveraging the large language models that others. >> like openai have built. now. >> all of this. >> would seem to suggest. >> that the announcement this morning is more political. >> than groundbreaking. >> and really a continuation. >> of the. >> apple playbook from that first trump administration. >> let the president take credit. >> to avoid tariffs on key parts. >> of the. >> business, like iphone manufacturing. >> yeah. >> you know, not dissimilar, deirdre, in some. ways from something else you've covered closely. the stargate announcement. for example, pitched as though. >> it was all. done up in. >> a. >> week or two, when. >> in fact, obviously. >> the plans had been in place for many months, but the announcement. obviously tied in part, and it was an enormous. >> announcement not to. >> not to diminish. >> it at half $1. >> trillion over the next,

whatever. >> it may. >> be, five. >> years in terms. >> of data centers. >> on this one. ubs makes the point. obviously, you you mentioned it. i mean, apple spends so much less on capex as. >> a percentage. >> of. overall revenues. >> than do amazon or alphabet or meta. and they seem to indicate. >> that if they. >> were really to move up, the buyback might be in question as well. >> right? >> right. >> they would. >> have to sort. >> of reallocate capital and i mean, really enter a game that they. haven't been. >> in. >> right, that they would be starting on the back foot. however, you could argue that new. trends in artificial intelligence like distillation could allow them to catch up faster. but again, this would be a very big shift. and i did find. >> the data center piece of this. >> very interesting and new potentially. what would they do with that space? but i mean, we know that apple hosts a. >> lot. >> of cloud computing, even for its own users. that could be one reason. david, i'm glad you pointed out project stargate. it really. >> sort of tells. >> you how difficult it. >> is to track these things. >> has apple added 20,000 jobs since that pledge in 2021 and

again in 20 2018? it's hard to track that. >> you can. >> look at their own workforce, but, you know, something. >> like amazon. >> has done, he can say, well, we invested in all these. >> startups that. >> created jobs. so, you know, it's nuanced and it's difficult to judge. but we'll see. >> what other details. >> come out. sarah. do they get any tariff relief. don't they still have to pay the higher tariffs. yeah i was made in china. it's a great point. and this is this would all arguably be to avoid those tariffs. we'll see if that actually works okay deirdre thank you. deirdre bosa as we head to break. here's our roadmap for the rest of the hour. nvidia getting ready to report earnings this week. what's at stake for the entire mag seven trade. >> we're going. >> to take. >> a look or a closer look at least at how reits. >> are performing. >> this as calls. >> for return to. >> office grow louder. >> and it's being called the biggest. >> crypto heist ever. that story is coming up as squawk on the street. >> continues after this.

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report that microsoft were canceling leases for ai. data centers, which could impact. gpu demand. but the major problem right now is recent supply chain checks suggest there are still some delays. >> with their g. >> 200 rack shipments. that's the. >> high powered. >> cpu, gpu, nvidia boards. turns out managing power and heat at this scale is pretty tricky, and that's pushing initial production into q1 with the first full year, or for a full quarter of shipments likely happening in q2. so in other words, the blackwell sales ramp. >> might just. >> take a. >> little bit longer to kick in. >> but there's some positive in nvidia's ecosystem is still signaling strength. suppliers like taiwan semiconductor just issued strong guidance. foxconn outlook is improving, and companies like dell hp. >> are already. >> securing blackwell based servers demand from hyperscalers. you guys talked about it in the previous just before the commercial break, as well as demand from china sovereign ai projects in france or stargate in the united states could help offset any blackwell delays. but looming u.s.

restrictions is still a major risk to nvidia. the restrictions would require licenses to ship. >> clusters of chips. >> the process is going to be time consuming and the results would definitely be uncertain. so with that risk out there. morgan stanley analysts say they don't see why invidia. >> would guide. >> any more than the usual. 2 to $2.5 billion increase. in other words, no surprises are expected post earnings. >> guys we'll see. i think implied volatility is about 8%. that's going to be an interesting evening when we get it christina. thank you christina partsinevelos. >> our next. >> guest says he does expect solid results from nvidia, but is more focused on the company's outlook in the months ahead. >> let's bring in niles investment management founder and portfolio manager dan niles. dan, great to have you again. good to see you. >> good to see. >> you too, carl. >> so you will be focused. >> on. >> the april quarter forecast. >> a i mean, i will be, but it's more, you know. interesting to. >> see what. >> they have to say. >> my view hasn't changed at all, which is by the time you get to the middle of the year,

you're going to get an ai digestion phase. the data that's come out at the end of last week, including microsoft's ceo on a podcast talking about he's looking forward to being a leaser of capacity by 2728. >> because he sees. >> plenty of. >> supply coming on, which means computing costs are going to drop. that tells me what i need to know. you got to remember, the semiconductor companies are always. >> behind the customers. >> the customers, they get a better look at what demand is, and then they will go ahead and change what the orders are after. they get more comfort in the fact that. that in fact. is occurring. >> so i'm sure. >> nvidia is going to be. >> bullish on. >> the. >> call, quite honestly. to me, i don't really care. that much because i look at what the biggest spender of i. >> capex is saying. >> which. >> is microsoft. >> and one of the things that's driving the market down today is ire from microsoft is in

australia, and they're sort of clarifying some of the notes that came. >> out on friday. and they're saying. >> you know, we think supply and demand are going to be. >> in balance. >> by the end of our fiscal. >> year. >> which, by the way, is june. so it's not that far away. and we think our capex growth is going to slow to more in line with our revenue growth. >> well, capex. >> growth is running 50. >> to 60%. >> the revenue growth is running mid-teens. so you look at that and you go, okay, well, that pretty much confirms. >> the fact. >> that capex is going. >> to. slow down. and so. >> for the nvidia print, it's more interesting to just see. >> what they have to say. >> jensen looks. out ten years in advance. >> i don't know meta. google amazon, oracle. they've all been ramping up spending in a big way. they haven't they. >> because if you. >> go if you go and i've written about this multiple times look at oracle. if you look at oracle oracle came. >> out and said. >> for their next fiscal year. >> they're. >> going to go. >> ahead and double capex. >> so you look at that and you get.

>> incredibly excited when. >> you don't do. >> any of the math. >> when you do the. >> math you go. >> okay, well, their fiscal year ends. >> in may. >> this implies 13.7. >> billion. >> in capex. >> you already had. >> six months go by. >> so that. >> leaves 7.5. >> billion left. >> to spend. >> in the most recent. >> quarter they. >> spent 4 billion. so 4 billion is 8 billion. >> that's not seven. >> and a half right. >> so their. >> sequential growth is actually going to go down. in ai capex. but you look at the headlines. >> and you go. >> oh, capex. >> is doubling. >> that's fantastic. >> that's the problem. >> with a lot of the analysis you're. >> seeing is people aren't actually. >> going through and doing the math. >> on what it means sequentially. >> much like with microsoft today, there's a reason. >> why, after. urs clarifying this, the stock. >> is going down. >> so then yeah, i'm sorry. >> dan, why would you go long into nvidia into. >> dell into broadcom. >> all these supplier names we're going to get in the next couple. >> of weeks. >> i didn't say it would be it. i mean that's my point.

>> there's a lot. >> of much. >> like the. >> prior comment of oh. >> my god. >> capex is. >> really. >> strong. when you actually go and do. the work, it really isn't. and the way you need. >> to think about this. >> is, you know, we all live through or most of us live. through the 2000. ramp up. and quite honestly, my view had. >> been that. >> okay, we're going to go through an. >> ai capex digestion. >> phase in the middle of 2025, and then we're going to. >> see a. >> doubling in revenues from nvidia through the end of the decade, because we still have a lot. >> more capex. >> going into inference. coming up. the problem. >> is. >> there's not a lot of killer apps. >> out there right now that are driving smartphone demand or ai, for. >> that matter. >> and until you get to that, you have this. mismatch between spending and what what demand is doing. and think about microsoft, right. they have a 49% economic. >> interest in. open ai, which started. >> all this with. >> chatgpt. two years ago, they guided below consensus. >> when they reported the june quarter. they guided revenues.

>> below consensus. when they. >> reported the. september quarter, and they. >> guided consensus below. >> they guided revenues below consensus. >> for the december quarter. >> that's nine. >> months now that's. >> been going on. >> so that. should tell you something about. >> where demand. >> and. >> supply is. >> when the. >> guy who's hosting open ai is guiding below the street. >> well, yeah. >> but dan, i mean now stargate's moving ahead. without them. they're going to spend a. half $1 trillion. >> you know. we'll see whether. >> it. >> really happens. >> i talked to safra catz last week from oracle. >> she seems. >> confident the number. >> is a real number. >> you point out inference and the. fact that i mean, can't we imagine. >> a world in which enterprise really starts to adopt these. >> agentic agents and they're running a lot of inference, and there's just an enormous. increase in demand over time, not to mention robotics. i'm just trying to think of things here that jensen huang may be talking about or will be talking about, that are going to continue to fuel the demand for his his company's products. >> you're 100%. >> right, david. >> but you got to remember, in

the short term, i mean, think about cisco, right? if you think about cisco. >> and the build. >> up of internet infrastructure that went on for six. >> years, cisco's. >> revenues went up 15.5 times over six years, with never a down. sequential quarter. it did not mean that. the stock. >> didn't have a. >> couple of 30% plus corrections. as you went through these digestion phases. that's what i'm looking at right now. the thing that's sort of troubling me is if the biggest ai. >> capex spender. >> they're looking at out across everything and they've been complaining about the biggest issue has been they haven't been able to get chips or power. if now they've kind of switched that you have to sit there and go, okay, well do you think they have a better view than all of us do? and if they're thinking that that's going. >> to cause their. >> spending to. >> go from 50 to 60% growth. >> to in line with revenues. >> by. >> the june quarter, right? that's the end of their fiscal year. which is mid-teens. then

what happens to demand? it's not like internet demand slowed down in 2001 and 2002. >> it didn't. >> stop the. nasdaq from going down. 78% over two and a half years, as valuations came in to more in line. and looking at warren buffett, you know, talked about it as annual shareholder meeting. >> selling stocks. >> et cetera. more cash. being raised. >> you have to think about. >> it especially when you look at valuations. so i've been. saying this. for months now. and the more data that's coming out the more that looks likely nvidia is. >> going to be bullish, don't get me. >> wrong, but you have. >> to look at. >> it from in demand. >> and. >> work your way back, not from. >> you know, what the chip guys are saying who've. >> been under supplying for two years. and the customers will change on a dime, just like they did in 0102. and i think that's coming. >> by mid-year. >> okay. we'll see about what we get wednesday night. and from dell. >> dan good discussion. >> talk soon. dan niles. >> thank you. >> still to come elon musk facing heavy pushback following his latest demand to federal

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independence and become financially independent in my retirement. >> join the club last day for new member savings go to cnbc.com now. terms and restrictions apply. >> welcome back to. >> squawk on the street i'm contessa brewer with your cnbc news update. >> the supreme. >> court declined this morning to hear a first amendment challenge over the proximity of protesters to abortion clinics. >> the case. >> argued the so-called buffer. zones violate. >> free speech. those zones are used to prevent. >> harassment of. >> patients and. >> to preserve access. >> to clinics. >> the vatican said today. >> pope francis is critically. >> ill and getting treatment in. >> a. >> rome hospital. >> for double pneumonia and kidney failure saturday. >> the 88 year. >> old. >> suffered a respiratory crisis that required supplemental

oxygen. a source says today. >> the. >> pontiff is conscious, eating and. >> in good spirits. and the fda. >> is delaying. >> a. >> decision on. >> what foods can. >> be labeled healthy. >> the proposed. >> new standards. >> would require foods to meet certain limits. >> for saturated. >> fat. >> sodium and added sugars. >> federal regulators. >> postponed implementing. >> these revamped guidelines until late april, they say, because of the trump administration's. freeze on new federal rules. >> that's the news this hour. david, i'll send it back to you. dan, at post nine. >> okay. >> thank you. contessa. let's turn now to washington, d.c. plenty of headlines, of. >> course. >> every day for the markets. >> to digest. >> eamon javers is here to help us do that. eamon. yeah. >> good morning david. >> there's enormous. >> uncertainty in the 3 million strong federal workforce today with just under two hours to go. >> now until elon musk's. noon deadline. >> for all employees to justify their job performance in a saturday evening email, federal employees across all. >> agencies and departments received a message. >> from musk's. team with the

subject line. >> what did you do. >> last week? the email asked employees. >> to reply. >> with five. >> bullet points. >> summarizing their. >> accomplishments and to. >> copy their managers and their response. >> the deadline is 11:59. >> p.m. >> eastern time. today. musk posted on social. >> media that failure. >> to respond will be taken as a. >> resignation. >> but it's not clear. >> what legal authority musk has to demand responses. >> or to fire. >> non responders. >> and several federal. >> agencies under. >> trump appointee. >> leadership are ordering. >> their employees not to respond, citing classified. >> or sensitive. information or chain of command issues. >> all of it indicates something of a power struggle. >> between musk. >> and other trump. appointees over who actually. >> controls the. >> federal workforce. here's how that's shaking out. >> some departments or agencies. >> are asking employees to pause or not respond to the. >> email that includes the. >> fbi, the state. >> department. >> the national institutes of health, the defense. >> department. >> national security.

>> agency, the office. >> of the director of national intelligence. they're all saying, don't. >> respond to this email. departments or agencies that are asking. >> employees to respond. >> to the email by the deadline. >> the department of health and human services. >> the centers for medicare and medicaid, they're saying. >> it's an opportunity. to demonstrate what. >> you've done and the importance of that work. so we'll see. >> what. >> happens after. >> noon today, guys. but for now, it seems the effort has president. trump's backing. >> over the weekend. >> he posted to social. >> media that he wanted musk to get a lot more aggressive. >> in scaling. >> down the federal workforce. >> back over to you guys. >> what about this? what about this idea of deleting or wiping out federal agencies? does he have the power to do that without congress? >> no. i mean, you know, you can't. >> delete an agency that has been created by a law. >> so if you know, elon musk wants to go through and delete. >> those agencies. >> you know, he can temporarily order. >> they can order. >> work pauses. they can order people to stand down all sorts of things short of literally

deleting the agency. >> but if the agency was. >> created by a law by congress. >> you're going to have to go to congress to get a. law to. >> remove that agency. >> from existence. we'll see if congress has the appetite to do that. so far, congress hasn't. >> been asked to weigh in on any of these moves. and we'll see whether they want to actually do that or not. it depends, really, on how much. >> political support. >> there is for each agency up on capitol hill. >> eamon, i'm just curious, you know, as somebody who's in that. >> area. >> you know, i don't know. >> your neighbors. >> your friends, i mean. >> many of whom. >> i would assume there are plenty of people, you know who work for the federal government. >> what what. >> is their day. >> like these days, and how much of their time is spent just worrying about these various missives that they keep receiving? >> you know, it's a. >> lot of anxiety, right? i mean, people don't know what the rules. >> are now. >> i mean, this an email like. >> this is certainly. >> never going out. >> to. >> the. >> federal workforce. and you could look. >> at it and say, well, that's probably a good thing. >> you know, why shouldn't they have to justify. >> what they did have to

justify. >> to my boss. >> what i did last week? that seems. >> a perfectly reasonable request. >> but when you get into classified information, sensitive information, health information. >> all the kinds of. data that the federal government oversees. and whether or not people have to respond to that. >> email is. >> causing a lot of anxiety. i talked to one person who said. >> you know, their. >> boss told. >> them not. >> to respond. >> but their boss's boss told them to respond. >> and so now they're. >> looking at this and saying, you know, i've. >> got a couple of hours to. >> make a decision here. >> am i going to get fired if i don't. >> send this email back? or am i. going to. >> get fired if i do send it back? so, you know, it's really making people confused. >> and nervous. >> yeah. now we've got this. ap story out. >> eamon, about a. lawsuit filed in federal court in california. on behalf of unions. veterans and some other. >> groups. basically saying that no opm. rule has ever. >> purported to require federal workers. >> to submit a report. >> to. >> opm. >> the office of personnel management. >> right. >> i mean, and that gets. >> to the chain of command issue. >> you know who actually. >> is your boss?

>> is your boss opm. >> or is. >> your boss the director. >> of your agency who's appointed by donald trump? >> and some of these trump appointees. >> don't. >> necessarily want their. >> workers responding to elon musk's emails. >> so there's this power struggle, struggle dynamic that's going on here, too, as to who reports to who. >> and it's going to be an interesting day. eamon javers. >> watching some of. >> these conflicting. >> tendencies in washington, dc. meantime, closer look at the markets still trying to rebound from friday's sell off. s&p is from friday's sell off. s&p is in the red shy of six k by 11 custom ink helps us motivate our students with custom gear. we love how custom ink takes care of everything we need so we can focus on the kids. we make it easy to wow all your groups with high quality custom apparel, accessories, and promo products, all backed by our guarantee at customink.com. feeling like you. do make our new sugar. >> free. >> your everyday sidekick. own

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can sign and make official. start your will at trust com and make it count. >> small caps are. >> under some pressure. >> you can. >> see. that they're following. >> the russell 2000. >> worst session. worst session. >> of the year. that was. >> of course on friday. >> frank collins tracking that group. frank. >> hey good morning david. good to see you. small caps moving lower in the first hour or so of trading, along with the s&p and the nasdaq that sell off on friday moving the russell 10% below its 52 week high that it hit back in november as we saw investors really pile into the russell following the election. it was part of that, you know,

the so-called trump trade. so small caps are also down more than 4% since the inauguration, making the russell the worst performer of the major indexes for both of those time frames, the five year inflation rate of 3.5%, fueled by tariffs and the highest since 1995, and the michigan consumer sentiment report. it was especially troubling for these interest rate sensitive small caps. it's a trade that's really dominated by cyclical sectors. the concentration of financials, industrials and materials. in the russell, it's considerably higher than both the s&p 500 and the nasdaq 100. that inflation rate is only added to the lack of clarity about when or even if rate cuts are coming. and one of the reasons we've really seen investor sentiment shift. state street says small cap etfs have seen net outflows of nearly $1.5 billion year to date, after seeing inflows of $11 billion in november, of course, following the election. so coming up this week, we have a number of notable small cap names reporting earnings. they've also seen their shares under quite a bit of pressure. they include chip maker ambarella, meme stock amc and beyond meat. as you can see right here. all of them well off their 52 week highs. sarah

back over to you. >> wow. ugly beyond meat 70% off the high. thank you. frank. frank holland. let's get the street's take on this market. sam stovall, cfra research chief investment strategist, joins us now. sam's s&p 500 price target for the year end is 6585. so higher than where we are right now, sam. but does the market look vulnerable. couldn't even hold this morning's bounce back rally. and now the nasdaq is down 1% as we speak. >> good morning sarah. yes the 65. 85 was our 12 month target that i established back in late november. and what we do is maintain. >> a. >> 12 month target because that. >> gives guidance for. >> our cfra. >> equity analysts. >> to decide whether the stocks that they. follow should be overweight or underweight. right now that. >> target has. >> not changed, which would imply that we have reduced the december target to 6490. so i think there is more concern ahead, as we've been seeing a reduction in earnings estimates for 2025. >> by about. >> 300 basis points, mainly

because of the strength, the pull forward of orders and whatnot for the q4. so i think that investors are getting a little more cautious at this point. >> and you think that makes sense? because on the flip side, you know, the data hasn't really deteriorated. there are some cracks. and you have a federal reserve that says it's willing to step in and cut rates again if things weaken. >> i think that there's still the. >> concern about how aggressive the fed will be with interest rates. >> i mean, we are. >> looking for at least. one cut, if not two this year, but that's certainly lower than the four that started the year. also, you have to remember that in the 12 months leading up to the first rate cut, while the market was up an average of about 19% in the 12 months after the first rate cut since 1990, the market was up only about. 2 to 3%. mainly because wishing is a lot. more profitable than having. and usually what we find

is that there are a lot more challenges that. >> have been anticipated. >> are there areas us, sam, that you think are proving. >> to be defensive enough? are you more interested in looking. >> to see. >> what's ex us? >> hey, carl. >> well, certainly in the past week we've been seeing about. six sub industries that have moved above both their 50 and 200 day moving averages, in a sense. bucking the trend. so areas like biotechnology, consumer electronics, diversified reits have done fairly well. but we are seeing rotation overseas mainly because we're looking at double digit relative discounts to both the developed and the emerging markets. and so i think investors are looking to where the greater profit potential and improvements lie. >> but i guess the key question on the nasdaq as we watch this slide for names like nvidia ahead of earnings microsoft broadcom palantir down 10% right now. has the fundamental case

changed around the secular ai growth story with things like deep tech or questions about capex spending. has anything changed because that's the key leadership area and also the biggest weight in the market? >> well. >> according to our. >> tech sector. >> group head, angelo zino, our belief is that the longer term. story for. >> tech remains intact. >> yes. >> near term. >> because we. >> had been. >> bumping up against a ceiling and that most of the growth would really come from earnings improvements rather than multiple expansion that we are going through, sort of a digestion phase of technology. but the belief. is that. still likely to be a leader 12 months and longer from now. >> all right. apple actually an interesting exception here today on the back of that announcement of investment in the us. sam thank you. we'll leave it there. sam stovall cfra. thank you. >> speaking of some. >> of this, check out shares of. >> baba today. >> reversing course. as sarah said earlier, after that 15% rally last week. company

announcing it will invest at least $52 billion in ai over the next three years. stock also getting an upgrade to overweight over at morgan stanley. big target increase there as well. they were at 100. they go to 180. stocks on a tear to start the year. although the nasdaq right now down. >> almost a full percent. >> almost a full percent. >> stay with prime, it's me. i mean, you. wake up, come on man! you gotta tell employers to take another look at all the benefits they're offering. everybody wants to build the best team and offering aflac can help attract and retain that top talent. you know we like that top talent. and listen, i mean you gotta listen. aflac gives employees cash to help with unexpected medical bills. it's prime time to add aflac. request a call today at aflac.com/prime the global personal mobility market is projected to hit 40 billion by 2030. damon is built for this moment. with a bold vision for electric personal mobility, we're setting new standards in safety, intelligence and accessibility.

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cnbc.com now. terms and restrictions apply. >> the cnbc change makers 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 list revealed. available now at cnbc.com. >> changemakers this apple expansion news another major reason investors are keeping a close eye on the real estate sector this year. our dominic chu is back at ac. >> with more. >> on that morning dom. >> good morning carl. so two of the big stories in the. >> world of. >> data center reits this morning, as you point out. apple promising to invest about $500 billion in the us over the next four years including for data centers. and as you, jim and david just reported last hour, microsoft is refuting a note from wall street firm td cowen saying on friday that microsoft is canceling certain leases with privately held data center operators. microsoft says there is no change to their data center strategy, but those data center reits. >> have. >> been a big part of the growth

story in real estate. the thesis as the tech grows, the industry needs more facilities to make the magic happen. >> for i. >> now, three sizable etfs cover the sector. the dtcc, which is the global. >> x. >> data center in digital infrastructure. >> etf. >> is up 15% just in february alone. srvr, which is the. pacer data and infrastructure real estate. >> etf. >> is up roughly 7% so far this month. and the ishares u.s. digital infrastructure is pretty much flat and roughly 6% away from its early december highs. now, three individual stocks in focus. equinix with a market cap of $90 billion. that stock is about 7.5% away from its november 27th high. the stock is now flat this month. also in february, digital realty trust that stock is up about 16.5% just since november 29th high. and then iron mountain is 30% away from its october 25th high. that stock is down roughly 9.5% just so far this month, sarah.

but it has been not typically a volatile part of the market. but real estate investment trust is especially for data centers are now maybe bucking that trend a bit a little bit more volatile following that tech trade. >> it's also one of those interesting sectors where the ai trend and the interest rate trend intersect, because it's so rate sensitive too. thank you dom. dom chu after the break. details behind the largest crypto heist in history, involving $1.5 billion worth of digital assets later today. don't miss a cnbc exclusive. jamie dimon live from jpmorgan's leveraged finance conference in miami, 1:30 p.m. eastern time. stay with us. >> psychonomics is sponsored by >> psychonomics is sponsored by sector spider etfs. when i started walton goggins goggle glasses,

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ground. >> one of the. >> world's largest. crypto exchanges. >> bybit, says. >> it has. >> now fully. recovered this following. >> the largest crypto. >> hack in history. mackenzie says the details for us. big money here. >> mackenzie. >> yes it is, david bybit, ceo, says the dubai based exchange has successfully closed the. $1.5 billion. >> gap left. >> by last week's record breaking hack. now, the company. has also released a new proof of. >> reserves audit, which it. claims confirms that all client assets are.

>> backed 1 to 1. now, since the attack, bybit has replenished nearly 450,000 missing ether tokens through strategic loans and investments from firms like galaxy digital, falcon x and wintermute. and crucially, withdrawals remain open, allowing customers to access. >> their funds. >> on the. centralized platform. but recovering the stolen assets is a different story. according to blockchain analytics. >> firm. >> elliptic, north korea's lazarus group is behind the hack. >> and. >> at. least 10% of the. >> stolen crypto has already. >> been laundered. >> bybit is offering. >> a bounty for the return of stolen assets, but with the hackers converting. funds into bitcoin and likely moving them into mixing. >> services next to. >> obscure the trail, tracking the money is becoming increasingly difficult. for now, crypto investors are watching closely, not just to see if bybit can recover the funds, but to gauge the impact of the industry's largest breach yet. now, ether, the token at the center of this attack, is down nearly 5% in the last 24 hours as investor confidence takes another hit. so even in this time of pro crypto policy being

rolled out in multiple jurisdictions around the world, including here in the us in the last. >> six months. >> it can't really make up for certain. >> gaps that still exist in. >> the tech itself. sarah. >> yeah, i mean, it's an old story now at this point for bitcoin still happening. thank you. mackenzie mackenzie sigalos. before we close out the show how about shares of lululemon. big news today adding seven time formula one world champion lewis hamilton as its newest ambassador. this is the biggest athlete that lululemon now has in its roster. they don't do the traditional sponsorships like nike and adidas where they, you know, throw a ton of money at these athletes. i'm still trying to learn about this deal. but basically, hamilton will star in some ads for lululemon. he's so-called brand ambassador. to me, it's just jarring because nike has been asleep on the f1 explosion and. >> trend your favorite things. >> exactly. >> and formula one. >> right, exactly. i mean, he has 39 million instagram fans. i tried to. >> it's so hard for you to.

>> wait until now. the sell off in walmart. the city surprise index that was front and center. but nike is actually having a good day today. it's at the top of the market because it got an upgrade from jefferies, and this was really the first one. after meetings with elliott hill, the ceo, the new ceo. he's taken a lot of investor meetings lately. most of the analysts have said nike needs time for turnaround. jefferies is saying he's he's doing all the right stuff. and so they like the stock. i will just say they should be involved with f1 because the global reach of that sport is tremendous. >> all right. we're keeping. >> an eye. >> on the market here. >> in which the nasdaq is down. >> 1.1%, shares. >> of palantir down. >> some 11%. >> a lot more. >> coverage for you. >> straight ahead. >> cnbc crypto world is sponsored by crypto.com, trusted by over 100 million users worldwide. >> no city is immune from financial challenges, but with assured guarantees, municipal

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