fourth quarter sales did, however, come in ahead of estimates. make sure you join us. we've got not that many seconds left, but. >> not tomorrow though. >> not tomorrow. don't want to join us tomorrow, but do join us on monday. have a great weekend, everybody. squawk on the street begins right now. >> good friday morning. >> welcome to. >> squawk on. >> the street. i'm carl quintanilla. >> with david. >> faber, sara eisen at post nine. >> of the new york. >> stock exchange. >> cramer has the morning off. futures do look to bounce from thursday's decline, as ppe data comes in at. >> least no worse than expected. >> although personal spending prints its. >> worst decline. >> in three years. >> ten years, four and a. >> quarter. bitcoin briefly drops to 78. >> our road. >> map. >> begins with the tech trade under pressure and. >> nvidia slide looks to continue. >> maybe at the open. >> tesla with. >> the second. >> worst month now. >> on record. >> and apple now the lone member

of the $3 trillion club. >> plus dell hp shares are sliding. ahead of the open this morning. dell delivered a mixed revenue outlook. hp warned that the. >> current environment. >> for trade. >> and how things are. >> changing may weigh on profitability. >> this year. >> and tariff pushback. >> china vowing to retaliate. as trump vows additional 10% tariffs starting tuesday. >> let's begin with this market reaction to pce and core pce 3/10 in line. we watch spending. we said the surprise drop 2/10 looking. >> for. >> a gain. and then. >> even worse once you account on a real basis. but overall market doesn't seem to mind it too much. >> it's a big view on inflation, because. >> the market was starting. >> to get worried that. >> inflation was getting a little sticky and the fed was losing its. >> progress on the disinflation. >> so it's good affirmation that. we're still on trend toward lower. >> inflation, especially. >> that core number 0.3%. that's rounded up. >> so that's good news. and then. >> from a year ago the increase is 2.6% for pce. >> that's the.

>> smallest annual. >> increase since. early 2021. that's good news when it. >> comes to. >> inflation the. >> overall number. >> at 2.5%. >> fed's going. >> to like that right. >> it's not 2% where the fed wants it to be. >> but it also isn't. >> going in the other direction. and it's especially a relief david after january. >> remember january. >> came in very hot. >> and it kind of confirms that idea. that some were saying. >> that the. >> seasonality factor plays. >> a role. where january. numbers are. high in terms of inflationary. >> and now. >> we're getting back to trend. >> that's good. although what karl said. >> on spending. >> i mean, real inflation. >> adjusted spending. >> down 0.5% disappointment. and it's lower. >> than it was the month before. >> and it feeds into the view that. >> the consumer. >> is starting to show some weakness. >> savings rate goes. >> from 3.5. >> to 4.6 after tax savings. >> so maybe it's a. >> hangover from the holidays. >> although maybe the consumer is. >> introducing some more caution. >> i know one. >> month is. >> not a. >> trend. >> make right? and maybe there. >> was weather. >> i mean, you know. >> that sort of.

>> plays into. some of these winter months, but it does jive. >> with some of the. >> confidence readings. >> we've had. >> consumer confidence. >> from the conference. >> board, from university. >> of michigan, all a bit weaker. we've had some weaker numbers on services. >> we had higher. >> jobless claims numbers lately. we have this philadelphia labor market. survey that people are pointing to. it's a short survey. we have only had it since 2023, but it did show a third of people are worried. >> about keeping. >> their jobs. and so people are kind of concerned that maybe the labor market starting next week is going to be so key, because we get the unemployment rate. >> and the jobs number. >> at the end of next week. and the fed, that's the one the fed watches to see if they have to go earlier. on cuts. >> and the. >> market is starting to. >> price in july now for the first. rate cut instead of september, which is where they were. >> meantime. >> david, the tech trade continues to get buffeted from growth concerns i guess, and tariffs. nvidia yesterday. >> we're going. >> to try. to see. >> if it holds. >> 116. >> which would be. >> a new low for the year so. >> far, but. >> down 8% yesterday. got a lot

of people's attention. and then bitcoin. >> below 80 k. >> yeah it's seen as a proxy. >> for risk. >> they say yes. >> and they tend to trade together. i mean you can take. >> a. >> look at. >> the likes of a palantir and. >> bitcoin for example. >> very similar correlation. >> as well. >> there's a lot of pain. >> out there. multi-asset funds i'm hearing certainly suffering as well. >> to get the. >> non correlation. >> of course there's. >> a there's. >> a good amount of pain. and yesterday. >> it was. >> certainly as the day wore on and we watched nvidia. shares and any number of the other. >> parts of. >> the mac seven, which still of course. >> remember comprise. >> about a third. >> of our overall. >> market value. >> for the s&p weakened. >> you might imagine that was continuing. so. >> you know, important to. >> watch again today, given that, as. >> you. >> of course mentioned, no longer a part of the. >> $3 trillion. >> club is. >> nvidia and or any. >> other company, of course. >> other than. >> apple. >> which has been hanging. >> in. >> there different kind of a different. >> makeup to a certain. >> extent, though. >> conceivably sarah, if. does

not get exemptions, will certainly be subject. as well to those tariffs from. >> china. >> which would. >> seem to be of. >> of significant import. if you imagine. >> 20% on. >> the typical iphone. that said, a lot of this has. >> to do, of. >> course, with the. >> continued spend in ai. >> apple not. >> as much a. >> part. >> of that, given. >> it's not a hyperscaler. >> and not committed to the. >> well, really. hundreds of billions. certainly when you add it all up of the microsofts. >> the amazons. >> the. >> metas and the alphabet's. >> maybe that's what's insulated it. >> you know, it's. >> somewhat interesting to look at the best performing sectors. >> now year. >> to date. >> it's a. complete reversal of what. >> we saw in 23 and 2024. where it's health care that's. actually up 7%. >> now year. >> to date consumer staples. >> so the. >> defensive groups. >> that nobody liked. >> last year and. the technology consumer. discretionary groups are. bottom of the. >> list. and they're. >> down year. >> to date. and whether it's. concerns about. >> spending, you know, related

to deep. >> sea or what. >> the roi is going. >> to. >> be from. >> all of this ai investment. >> i mean, you know, i would make the point. we've seen. >> nothing that. >> indicates a diminution. >> in. >> spending as of yet. yes, there. >> was some talk around microsoft. >> and there still is. and satya said some things during. >> a podcast. >> that could be. >> interpreted, perhaps. >> at one at some point. >> in terms of their capital spending. >> slowing. >> but nothing. >> and nvidia's numbers were strong. and yet we've had this reaction. so you do have to. >> overlay how much of it is just. related to concerns about. >> tariffs, economic slowdown. >> or. >> really about. >> what you just discussed. and we've discussed and. >> we'll continue to watch. is are you going to. >> see the roi? >> are you going to be. >> under pressure to. >> potentially cut cap. >> spending and did what deep. >> seek did in some. >> way mean that you're not going. >> to use. >> as many. >> gpus. >> which. >> by the way, does not seem. >> to be the case. >> i think it's all. >> of it. but also. >> david, i mean, you're. >> right, nvidia had. >> what. >> 78% sales growth and 80% profit growth. it also. >> shows us that. >> a lot of it is baked in. >> where did nvidia.

>> close yesterday. down 8%. >> yeah i mean it got worse as the day went on of course. and remember it was up initially. >> not a lot but it was up a couple. >> at work i think. >> and what and what's been priced into this market. although at least. >> you know. >> on. >> 26 numbers carl the things trading at about. 30 times i mean. >> that's 26. >> that's not. >> compared to a palantir. you can't. >> yeah. you know. in terms of multiples. >> people pointed. >> out jensen's. >> comments were. >> mostly about. >> 25 and not 26. >> yeah. >> jp morgan. desk today. the question i. >> keep getting. >> they say, is why the fed so early yesterday on nvidia. what the. market needs to get nvidia. >> to make. >> a real move is not. >> going to come from. >> jensen, but rather from other corporates, especially software, since these. >> enterprise use. >> cases are still. >> far off. >> and it would be nice to have some other companies say, here's how we're going to use. >> it, right? here's how we're going to use it. >> we're going to. >> the world of we're believers. we're going to see enormous efficiencies. i mean, many. >> we expect. >> that. >> that will. >> will happen. certainly. >> marc benioff, for. >> example, from salesforce, is a. key proponent of that. and

what that's going to mean for many of their customers. you do have sam altman saying, we need more gpus. we can't get them. >> that should be bullish, right? >> yeah. >> it should. >> be bullish. now that is one of the key. >> customers here. >> not exactly. you know, it's the products. >> that they will come up with for the enterprise that carl's. >> talking about. not necessarily the actual. open ai and their need for gpus. but it doesn't hurt. >> when they say we got a huge shortages. >> we got to do something about it. >> there's the quote from. >> the jpm desk. >> i think something else is. >> going on here. >> maybe not necessarily related. >> to tech, but. >> i am. >> noticing it. >> more come up. >> in the notes. >> on overall. >> trading and. >> the. >> market sell off. >> notes. >> which is that. >> ugly. >> word of stagflation. >> if we are going. >> to start to see the. >> weakness in the consumer. and in the labor market at. >> the same time, where. there's risk of inflation. because of tariffs. >> and it might not be one off price shocks if we're going to get this rolling. 10% increases on. >> china tariffs. >> are we going to deal with a backdrop of stagflation which is just ugly right. market doesn't like it. >> stock companies.

>> don't like it. >> bad for. >> the economy. let's talk about all. >> of. >> that, especially with today's numbers and focus ppe. >> out another mild. >> number. >> i would say diane swonk, kpmg chief. >> economist, joins us now. >> were you relieved to see that inflation number this morning, diane. well, this is exactly what the inflation number was expected to be. we had already the inputs from ppi and the. consumer price index. and this is exactly what the fed expected to see as well. and that's most important is that we're getting to a point in time where the year over year comps get much easier, and the momentum in inflation is going to show some signs of cooling. the question is can it stay there? and that's what the. >> fed. >> has also been warning about. they've even we've even seen some fed presidents hint at being cautious about the lessons of the 1970s, which of course were stagflation. many of the effects. this is before any of the effects of recent policy changes come into play. and even tariffs take a while to actually be implemented. there is a gap

between even the. emergency use of tariffs that the president has used and when they actually show up out there, and i think that's important as well. the weakness in consumer spending, we saw that in retail sales, and it was really more due to the fact that we had two massive winter storms in the south, places you don't usually have it, which limited mobility. store traffic fell along with traffic on dealer lots. and we're going to see that pick up a little bit in february. so it's all way too soon to look at the economic effects of the. president's proposals. and the fed knows that. and that's why they've been so cautious on this. we're comfortable where we are for now. so. >> are you not. >> reading too much into the weaker economic data and worried about. >> demand actually falling off at the same time? and i. >> know we don't know the. >> effect of the. >> president's policies, but we are getting tariffs from. >> every angle here. >> and i think another surprising. >> fact for. >> the market has. >> been doge. and just. >> the fact that they are.

>> able to they. >> do seem. >> to be cutting a lot and especially the federal workforce. and whether that's. >> going to have a negative impact on. >> the economy, i am very worried about those things. it's just sequencing when they actually hit. in fact, the february employment report will probably not show much effect of the cuts yet. we're not going to see it until the march employment report. and we know the spillover effect of many of those cuts can. multiply in the private sector, and it's already having a chilling effect and starting to see increases in furloughs out there in non profits in the educational sector, in health sector, in terms of exploitation research. all of those things have effects down the road. and they're going to start compounding. >> over the course. >> of the year. and i think that's the most important thing. the other issue, and i think it was alluded to in the earlier program. >> is how. >> much uncertainty we've seen with the rapid pace of shifts and the push to execute with this, with the slate of policies on the administration, the

sequencing of the effects are that you're getting many of the negative effects upfront and uncertainty, which is acts. >> as its. >> own tax on the economy. there's a lot i talked to a lot of c-suite individuals, ceos, cfos and hr professionals that are. >> looking. >> at the economy saying we don't know what to do right now, and that. >> freezing. >> that sort of hesitation is a tax on the economy in and of itself. and that's something we're very concerned about in. terms of economic growth going forward. >> yeah, no, we. >> definitely took note. >> diane, of. >> the layoff announcements. >> yesterday from. >> autodesk and hp and google. and there have been others in the last. >> few days. the hiring freeze at. >> stanford announced yesterday. i do wonder there has been some discussion this week about the break even for jobs, maybe moving into the 75 k to 100 range. >> where do you think. >> that is right now? >> and would you be looking. >> for this to. >> result in. >> a negative. >> nfp print? this year? >> we could easily. >> get a couple of months into

the read on ink on the actual payrolls, and i think that's important. i wouldn't even be surprised to see it in as early as march. but you're right, the break evens have fallen, mostly because we're also about a million people that were asylum seekers are now illegal immigrants in. the country. they had been legal. >> they can. >> no longer work. they're also looking at going after tn visas from mexico and canada, making them unable to work. that constrains participation. in the labor force and creates these pockets of acute labor shortages where there already are shortages like construction. think about rebuilding la after its fires or in the leisure and hospitality sector and in the care sector, child care, elder care. >> that's where. >> a lot of immigrants have filled jobs that were vacant. and remember, much of the fed's sort of soft landing scenario really was dependent on that surge of immigration that helped balance the labor market and fill all those excess job

vacancies we had. now, the reason people are worried about stagflation is you see it in the consumer confidence numbers. they're worried about their jobs. at the same time, they're worried about higher inflation. yep. well said. >> thank you very much for joining us. >> on. >> pce de diane swonk. >> when we come back, we'll get the view from china on the president's tariff threat as we get zelensky at the white house today. maybe get a little more clarity on tariffs after. >> noon. >> as we wrap. >> up the month of february. today we'll look for some positioning flows, whether that positioning flows, whether that changes. but for now futures business. it's not a nine-to-five proposition. it's all day and into the night. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone.

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investment objectives, risks, charges, expenses and more in prospectus at invesco.com perspective. >> deep seek was fantastic. it open sourced the. >> reasoning model. >> that's absolutely world class. >> ai has become. >> better if you believe every customer experience is going to be reinvented by generative ai, and. >> you're going to be. >> building a lot of generative ai apps, even. >> if you say. >> i, i don't think. >> there's going. >> to. >> be. >> deflationary in the short run. it may. >> v

dude, i really need a new phone. check out my new samsung galaxy s25 ultra. it's got galaxy ai. imagine this thing running on our superfast xfinity mobile network. and i also heard that it can do multiple things with a single command. —with google gemini. let me try it. add recipes with overripe bananas to my “dessert ideas” note. that's what you chose to ask it? i had other things planned. ask how to get up to one thousand dollars off the new samsung galaxy s25 ultra with xfinity mobile. >> for thoughtful. >> living. thuma. >> china. speaking out against the president this morning, vowing. >> to retaliate if he does impose. >> that. additional 10% tariff on that country's goods next week. let's get more from eunice yoon. >> in beijing. >> eunice, we're. >> getting. >> some comments from macron in france. >> saying he. didn't get much hope. >> on tariffs when he was visiting in the last few days. what is the word from china?

>> well, the word from china is that. >> the chinese government. >> is threatening. to take. what it. described as all. >> necessary measures. >> so this. >> is unlike. >> earlier this month. >> when china vowed. corresponding counter moves to president. trump's february. >> 4th. 10% tariffs. so immediately. >> after those. >> tariffs had kicked in, china. >> had come. >> up with its own actions. so these included counter-tariffs. >> export curbs on. >> critical minerals, a blacklisting, as well. >> as flagging a. probe into. >> individual u.s. companies. >> and these. >> were seen as relatively mild, but that they sent. >> a message of. >> what. >> beijing could do. >> so investors. >> here today. >> dropped stocks. >> they were worried about. the potential for. escalation of tensions. >> the research house anz had. >> said that with. >> the march tariffs, the. >> average u.s. >> tariff on chinese goods could. >> reach 33%, so it expects a hit to chinese gdp. >> now, the timing of these tariffs.

>> would also be quite interesting because. >> it be. >> coming in one day before president xi. jinping heads into. >> one of the biggest. >> political gatherings of the year in this country, the. >> national people's congress. this is a time when the beijing. leadership unveils what. >> the. >> economic blueprint. >> for the year is going to be, so there is very likely going to be many investors looking to see if there's going to be more mention of stimulus. >> is there any indication. >> eunice, that there's going. >> to be talks. or a. >> deal, for instance? >> that's what's. >> happening with mexico and with canada. >> first of all, what the trump administration wants. >> and how much china is willing to do to get. >> their. well, president. >> xi is in. >> a different. position than. >> the. >> canadians and. >> the mexicans. >> because of. >> the nature of the. relationship with the us. and china is much more adversarial. so president xi isn't going to want to appear as though he's bending to american pressure. so that's one point. what also.

>> i. >> think is interesting is that. >> in the. >> commentary, unlike mexico and canada, president. >> china didn't indicate. >> at all as to whether or not they. >> would address. >> what appears to be. >> motivating president. >> trump for these tariffs. >> and that. >> is. >> the fentanyl trade. >> so today, president. >> the chinese. >> said that this was just passing. >> the buck. but it looks unlikely. >> that he would necessarily pick up the phone and call president trump. >> to be. able to work this out. >> in fact. >> a lot of the discussion. >> here is that. >> he's. >> probably going. >> to or at least. >> the chinese. >> would. wait it out and then hope for. some larger deal. that's something that they. >> would benefit from. >> eunice, has anyone there from the government made mention of the fact that china's stocks for the year to date are up. >> 18% in. >> the s&p is red? >> oh, a lot. >> of people. >> have been talking. >> about the. stocks and the. chinese stocks and how exciting it is. and a lot. >> of that. >> is driven because of the interest in tech. so it's just

that every day when you look at. >> state media. there seems to be. >> either an announcement. >> of a chinese tech company. >> like coming up with some. >> sort of chat. >> bot, or talking about. >> their ai, or. integrating deep. >> seek, or. >> it's the. >> pumping up. >> from. >> state media. >> and patting their backs. >> that the. >> chinese are doing so well. >> in this area. >> eunice, thanks. >> we'll see what. >> happens, certainly over the weekend and next week going to be an important one. eunice yoon in beijing, take another look here at the pre-market as we continue to monitor whether or not this momentum trade. >> can hang. >> on, especially given the. >> fact that. >> the last i think five fridays have been red. >> we'll dive into. >> dell and certainly. autodesk >> dell and certainly. autodesk as well with squawk [birds chirping] [dog growls] ♪♪ ♪ who knows what tomorrow ♪ ♪ will bring ♪ [dog barking] ♪ maybe sunshine, ♪ [dog whining] ♪ and maybe rain ♪

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putting ai to work for people. oh, so we all work better, together! my work here is done. excuse me, which way back? uh, follow him. >> jim cramer gives you much more than you would ever get from any advisor. it's more than a club. it's an opportunity. >> go to cnbc.com. join jim. >> interesting nasdaq 100 action last few days. fastest 5%. >> drop off of. 52 week. >> high or an all time high since 2020. but here are some of the month to date winners intel, gilead, t-mobile and take two all up double digits for february opening. bell is coming up in about 5.5 minutes. don't forget you can catch us anytime, anywhere. just listen to and follow the squawk on the street opening bell podcast.

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>> at one point overnight, it did fall below 80 k to about 78. >> the cryptocurrency. >> has erased most of its election. >> gains. >> down more than 25% from the record high set on inauguration day. it's down like 20% in five days. >> honeymoon's over. yeah, yeah. >> if you look at a chart. >> comparing bitcoin. >> to palantir, right. if we're going to talk. >> about, you know, higher valued exciting future. >> tech stocks. >> they track each other nicely in terms of direction. >> i mean palantir. >> has. >> had a. >> monster run. so has bitcoin. >> and they've all given. >> it back over the same time period. so the correlation between. nasdaq 100 and bitcoin is very much intact, which is only to say that people are looking at it as sort. of a risk on kind of play. >> and there was. >> a lot of hope going into trump's presidency, and he's made a lot of very. crypto friendly appointments. and now i guess it's a show me story in terms of what they actually do. are they going to do a strategic bitcoin reserve? what does that even look like? how is it how

would it influence the price? it's not just bitcoin. some of the other. >> crypto coins. >> are. >> all they're. >> all selling. >> off in tandem. >> michael saylor. >> says sell a kidney. >> don't sell. >> your bitcoin. >> buy more. >> buy more. it's worked out for him. >> strategy. >> i think it's. >> well true. >> if they've officially changed the name to strategy. >> for microstrategy, most are still. >> coming up. >> factset better. >> change it then. but they continue to sell converts i mean or have been successful in doing so. we've pointed out many. >> times, of course. >> stock moves moves with. >> bitcoin. >> but the value of their bitcoin is at a multiple of. >> of its. >> worth. in terms of the overall market cap. >> you can look. >> at coinbase year to date versus. >> the s&p. >> sharp drop off. >> i mean they're still is the hope that some of this policy the administration is exploring is going to get codified into some kind of law. >> but i think there's a. >> parallel between bitcoin. >> and the overall market, which the nasdaq is now down. >> 5.5% since. >> the trump inauguration.

>> it's still. >> up a little bit since the actual election. >> the russell. >> is down. >> 6% since the inauguration. >> s&p is. >> down 2.25%. >> and bitcoin. >> is down. >> there's the. >> trump hope and then. >> the trump rally. >> and so a lot of those trades have been failed. >> let's put the opening bell here in the cnbc realtime exchange with the big board. it's u.s. customs and border. >> protection at the nasdaq. rocket pharmaceuticals focused. >> on genetic therapies. >> for rare disorders. as we got brett fairly positive here at the open. >> there was a lot of discussion. >> sarah, yesterday about 5886 sort of this near term momentum number on the s&p, where some desks had argued a couple of days ago that you would begin to see a lot of cta supply come online not too far away, but we haven't recovered that number yet. >> the january. >> low is. >> about 1.5%. >> lower than. >> the close yesterday, 5773. >> the 200 day moving average is 57.16. >> so those are. >> some key technical points. btig is technical analyst says

any counter-trend. >> bounce, which may be what we're seeing. >> today. >> although it's. >> not holding up well, opportunity. >> to. >> reduce exposure. >> and we have. >> sort. >> of seen this pattern of. >> starting off. >> strong and trying to rally and then. >> really fading throughout the day. >> that's been. >> nearly every day this week where we sort of. close sharply and yesterday sharply lower. >> well and cramer. >> although he's not with us today david's been writing a lot this morning about zero day options and sort of how it has nvidia by the throat at least at the moment. >> yeah. >> although they work both ways. >> there are day options. >> i mean they work. >> also when it's. >> going up. so it's not completely clear that it's the reason somehow that the stock continues to decline. but they are a. >> feature to. >> a certain. >> extent of trading in that particular. >> name. >> as he's pointed out. of course, that gets to a whole different dynamic in terms of the. >> so the day trading. >> that's going on now. >> and the way people. >> approach some of these names in terms of whether it's going to end higher or lower in a given in a given session, but

again, it's sort of again, you. >> know. >> you could also make the opposite argument. >> when it's when it's headed up. >> it's all because of these. these options. are right or, you know. >> being exercised. >> i see you got the dell numbers. yeah. and we're going to work our way through some of the. >> guidance from last night. david, would. >> you say mixed. >> does appear to be the reaction certainly mixed. >> any number. >> of the analysts who follow it. >> strong i pipeline buybacks. support is one of the names. here from i think it's mizuho looking at ben writes this work as well. >> but overall the reaction as you see there not particularly positive. >> you know their ai. >> pipeline ramping. >> with full ai. >> rack power vertical integration. they've now expanded ai service offerings. i mean, they are. >> clearly right. >> in the center of that. you did make the point yesterday. i think it was carl, in terms of the margins on some of the big. >> orders that. >> they're getting. >> and. >> whether or not, you know, that will really expand over time. but initially they are not making a lot of money or a lot of profitability. from some of

those big orders. >> cfo on that very point, we've talked about. >> the profitability. >> because that can. last yesterday. what they showed in the. >> quarter was. >> actually very good profitability. >> and that's. >> what yvonne. mcgill pointed to when we when. >> we talked about this on the overall revenue miss, she. >> said yes, supply. >> timing definitely. >> was a part of this. customers. >> she said, are increasingly. focused on next generation tech. >> and that's blackwell, right. >> technology. >> our pipeline is still multiples. >> of. >> what we're seeing. i thought it was a pretty bullish comment on. >> her by her. >> on the. >> ai server. >> business, the csg, which is basically. >> the computers. >> was lower. >> than expected. and then on the margins. >> she said, look at the eps. >> for. the quarter. >> strong performance, better than we expected on profitability. we improved in isg. >> which. >> is the server. business and networking and storage every quarter. >> all while. >> growing our server portfolio. >> also mentioned. >> to me on. >> this point, david, that they've been able to find their own. >> efficiencies within the. >> business in. order to keep. >> margins higher. i asked her about deep. >> sea. >> you know, because. >> that caused that that big

freak. >> out about. >> how. >> much spending is needed and. >> whether you need. >> to. >> spend so. >> much on ai servers, she said. actually. >> that was a moment where we saw it ignite interest and. >> it was. >> almost an excitement. >> moment, a. catalyst for customers of we. we need to be here and we. >> need to get here. >> quick because. >> they're doing it, you know, in. >> china, pretty competitive environment, though. >> as far as microstrategy, hewlett. >> packard enterprise. >> david. >> they're all in the ai server business. but according. >> to yvonne. >> mcgill. >> the cfo. not the lowest. >> price servers on the market with dell, but best solutions. and so customers. >> are willing to pay. >> up for. >> the more. >> what she calls valuable solutions on the ai front. so kind of a mixed mixed numbers and maybe mixed take from the street. >> although very. >> bullish in terms of the commentary from the executives. >> yeah, i mean, and that's been the case, i think, across. >> the. >> board to a certain extent. and yet the market seems to be at. >> least embracing perhaps some fear. >> of a slowdown.

>> overall when. >> it comes to the big ai. >> related trade that we've. >> been talking. >> about. >> now for so long. and obviously we referenced some of the big names earlier. but, you know, it's funny. and then you get and i. >> referenced this sam altman. >> from open ai putting out a post saying gpt. 4.5 is ready. >> that's their latest. >> first model, he says feels like talking to a thoughtful person. >> he goes on to say he's had. >> several moments that have set him back in his chair. he's been astonished. but what he goes on to say is. >> it's really expensive. >> and given how much. >> we've been growing. >> we're out of gpus and. >> so we. >> need more. we're going to get them. hundreds of thousands are coming soon. pretty sure we'll use every one of them we can. >> rack up. >> so you get you get something like that. and you would think, well that's a positive. and then you also have news. and i've been i've referred to the capital expenditure plans of many of the hyperscalers. and then the fact that private

credit has gotten into this game in terms of where they are actually buying or putting up the money for data centers and then leasing those data. >> centers to one tenant. >> and there was reporting yesterday from bloomberg on apollo doing this. it's a deal that's sort of somewhat. familiar with not completely clear that it's going to be just apollo. there's a lot of competition between the big private credit or the alternative asset managers for leading these. but my point is that even the stated capex number may be understated, to the extent that you also have these other financing vehicles that are being led by private credit, in which they will own the underlying, but basically have a long term lease. and so you've got a meta that's going to be paying and giving them a decent return on invested capital there. so no led up is. >> what. it seems. >> like in. >> terms of the. >> willingness of the hyperscalers and others to spend and openai to have to spend on gpus and that. and then you see

what's going on, though, in the market. >> yeah, there's the meta announcement about their meta ai app. and your point about the note today says apple is the safe haven within the mag seven. why is that? because their capex relative to others. >> is a. >> light spend. >> interesting. >> yeah. that was altman saying, well, maybe we'll come out with a social app. yeah. and when meta. >> said, you know, we're going to come out with our own. >> specific chat app. >> yeah, he's. >> become quite the trash talker. >> he really has. >> yeah. >> yeah. not just against. >> elon musk. >> although this wasn't as personal towards mark zuckerberg. >> speaking of musk, tesla today down to 275 at the open. that would be the first violation of the 200 day since august right now down about a percent, but interestingly, didn't get any traction yesterday from the news that they applied for this chauffeur services license in california, which some believe would lead you to a robo taxi service after we see it in june. if we. >> do. >> if we do, and i know that

headline yesterday didn't seem to affect the stock too much in terms of that trajectory. you see what it's up, obviously over the last year, but much of the run up into the election has now been erased. do you remember the compensation? you know, coming back to that, they're going to have another annual meeting. >> not that long. >> from now and that is still not been settled. of course, the shareholders last year in the annual meeting, voting really overwhelmingly. >> to. award that compensation to musk. >> that amounts to tens of billions, if not more. i got to check my latest map, but that's going to that's going to the. >> delaware supreme court. >> just to update this, because i had a conversation with somebody about it yesterday, it may not be until the late in the fall that we learn the actual outcome there. you're going to have another annual meeting. it will be interesting. >> like how. >> in terms of musk and how he spends his time right now and what shareholders he got. 30% of the shareholder base is. retail now. many of them are are firm and true believers. but, you know, you do wonder what, if anything, will come up there as

well, given so much of the attention on the fact that, well, how much time is he really spending on this company? >> right. >> and then yesterday, of course, as musk is ostensibly looking for, government waste comes out and says one solution would be to take the faa air traffic control contract and give some of it to starlink, which, you know, kind of gave us a look at verizon shares yesterday. >> i mean, the. >> stock is. >> 43% off the highs. tesla. i do. wonder if there's. >> to your point. >> a pain threshold where. >> the calls get louder for him to return to the company. right. and get out of the einstein building. >> next to the. >> office, next to the next to the. >> white house. look. >> he's doing important work. and clearly very dedicated to it for the country. >> but you and. >> look. >> all the. >> analysts we talked. >> to say there are people in place running tesla. >> it's fine. >> without a doubt. >> but elon musk. >> is. >> tesla and i. >> and i just wonder if there's a certain. point where he feels like he's. >> got to get back there. >> i think elon is going to do

what elon wants. yeah, but but again, i just we're going to be running into i mean we're we got a few more months, but the annual meeting usually in may. so and still haven't figured out his comp. by the way, if it does get ruled against that, the delaware supreme court, you know, they've got to come up with something. it's going to be interesting to see everything in the mix there. given given musk's many roles. guys, i do want to do an update on in the m&a world. there's a look at tesla, of course. you know, we haven't had a lot of deals this year as we start march on monday. in fact, we expected there'd be a lot, but one that we may get sooner rather than later. and perhaps many people, including myself, sort of unexpectedly. is this walgreens buyout by sycamore? don't buy the stock on that. we've reported on it previously. i've sort of reported on the ups and downs. the journal had reported on the talks that i'd been aware of, but frankly, so many people thought, there's no way this thing gets to the finish line. and i said it was mostly dead a few weeks ago. then we'll follow that up by saying it was alive.

there's been a lot of reporting since then from both, i think bloomberg, but the ft yesterday as well, that i can confirm because they're we're getting close. according to people familiar with the situation. and it is going to be as the ft was reporting yesterday, sort of financing it in pieces and it will ultimately be split up. you're going to have the roll in of stefano pessina, one of the largest shareholders there, of course, who originally put boots on boots, put it together, bought walgreens. but be careful in the name because from what i'm hearing, and again, i'm not getting specifics in terms of exactly, you may not get anything that involves a premium at this point. and we've kind of watched the stock move, not to mention the complexity of the deal itself. as i said, sort of buying it, you know, financing different parts of it. and then having essentially sycamore control the us retail. why do you want to be in us retail and own walgreens and compete with the likes of amazon? a lot of

people may question, but apparently they have a plan. deutsche bank this morning kind of lends their voice to this and says, hey, take under thoughts on the recent takeout news they're basing it off of, i think, the ft reporting in may saying that a couple of weeks ago the deal was back alive deal strikes us as incredibly complicated and unlikely to be consummated. premium the current share price highly difficult. i can confirm all of that at this point. again, the idea being, first of all, it will take quite some time. and again, people familiar while not telling me specifics in terms of price, that don't expect that it's going to be much higher than here. but sarah, you know, when it comes to sort of how you. >> talbots and tailor walgreens. >> yeah. how you refashion walgreens, particularly given so much as we know in certain urban areas, is under lock and key in these stores, pushing consumers to just go to amazon and say, it's fine, i'll get things delivered to my doorway at. we'll see. and obviously pharmacy is an important role

there, but we have not had a lot of deals and this will be one of the largest of the year if in fact we do get it, as appears to be more likely than not. >> meantime s&p briefly going negative taking out yesterday's low. we're still about 40 points above the closing low of the year vix year to date. high gold. >> is down 40. let's get to bob pisani. >> hey bob. >> good morning carl. >> well a little bit of. >> relief today on the pce report. which was in line. and that's certainly good news because that's one of four big issues that the market's been dealing with. but still today if you look at the market here even with the s&p flat to modestly up it's still being led by defensive names here. so staples healthcare leading techs lagging. palantir is down another $7 here. so sarah was mentioning the leadership groups this year. and it's very clear it's defensive here. and it's been that way all year now a lot of people really have wanted to see this this kind of rotation with health care and consumer staples, financials. real estate

materials, energy banks. look at all of these things here. a lot of these were big losers last year, like energy for example, taking up one of the leads here. and the laggards of course were among the best sectors of last year. so communication services is basically flat. and that's primarily because alphabet has been a problem for most of this year. but tech you know we've seen double digit declines in broadcom and. salesforce and nvidia discretionary. that's largely the impact of tesla and amazon i think. so here. yeah there you see the individual stocks here with the tesla down 30%. broadcom is a huge name in the semiconductor space i mean it's on number two past nvidia here. and alphabet microsoft apple amazon meta is really the only big winner so far. and even that's off of its highs that we saw recently. pretty amazing run for meta. you know i look back and think of the good old days like six weeks ago. we only had one issue to worry about. and life was very simple because when you have a stew of only one issue, it's pretty simple to

deal with. and at that time, the one issue was inflation and the fed rate cuts. that's what we were trying to figure out. now, today with the pc in line, we're probably looking at 1 to 2 rate cuts in the year, something like that. so that's receding a little bit but still there. but now we have three more issues that are sort of floating out there. these tariff risk issues with canada and mexico and the tariffs in a few days, the new china tariffs. so we've got the washington headline risk. we've got dodge, we've got budget issues and we've got this growth slowdown. you see this today in the weaker spending numbers that we saw in the consumption numbers here. that continues a series of kind of. subpar economic numbers. and of course we're dealing with high valuations. so it's tough moving forward when you've got this kind of complicated stew. you know we used to talk about the fed put about the idea that the fed would step in and cut interest rates if things really fell apart. now all this week people are talking about whether there's a trump put out there. obviously we have the situation, we've. got lower rates. but you know we have these inflationary tariffs. they want lower rates.

but we have these inflationary tariffs and a possible economic slowdown. well they don't want that. so we don't know if there is a trump put or where that that floor might be right now. that's sort of the source of a lot of debate right now. what you don't want is an economic slowdown with tariffs and persistent inflation. now you've got a real serious problem. and remember finally sarah stock, the s&p is only 4% from the high. so it is going to be much tougher to push that a lot higher. now the pressure really is potentially on more downside at this point than getting to the upside. sarah back to you okay. >> thank you bob. >> bob pisani. >> nasdaq is negative right now s&p 500 holding on to a gain of a little more than a 10th of a percent. >> we've got more economic data for you. chicago pmi. let's get to rick. >> santelli with that. rick. >> yes sarah. some better news from the chicago pmi. this is the man's version of what's going on in chicago. and we're expecting a number right around 40. and we were back to back

under 40 the prior couple of months. it moves up to 45.5. now granted it's not 50 or higher which would be expansion. we haven't been above 50 since nov of 23, but this is still the best month over month positive number in the chicago pmi since september of last year. and it does underscore what's been going on with regard to manufacturing and all the issues associated. there's only been a handful of times where we've had three back to backs under 40. one was covid related. prior to that, you had to go back to 2009. so pretty good news. rates are sparking up just a little bit. but to show you how much we've fallen right now, we're currently at 403 403. in a two year. that's down 17 on the week. we're currently at 424 and a ten year that's down 19 basis points on the week. these are big numbers. squawk on the street will return after a short break.

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to the ground. >> it's a lot at stake for the energy markets. if president trump makes good on his threat to implement tariffs next week, let's get more on that from pippa stephens. she joins us from her headquarters. pippa. >> hey, david. well, even. the reduced tariff. >> of 10% on canadian energy could rock energy systems and lead to higher prices for consumers. the us is the. world's largest oil producer, but. >> we still import. >> roughly 6.6 million barrels per day of crude. more than 60% of which comes from canada. much of that. >> is. >> what's known as sour crude. the us primarily produces light crude oil, and so refiners can't just switch gears. patrick de

haan from gasbuddy said this. >> could. ultimately lead. to as. >> much as a 25 cent increase on prices at the pump in the short term. now, should canada retaliate with export tariffs, prices could go even higher. now, on the nuclear side, the impact could be even larger. >> the us. >> imports almost 100% of its uranium, with more than. a quarter coming from canada. as segra capital put it, the only credible path to us fuel security is to have stronger ties with our northern neighbor. now, much of that uranium comes from cameco, which has tariff clauses in many of its contracts, meaning the offtaker will have to. pay the higher price in regulated utility markets. think dominion, duke's southern company, and entergy. fuel is a pass through cost. so if the utility. >> is paying a. >> higher price, that ultimately winds up on consumers bills. guys. >> i know. >> you mentioned uranium. >> just you know, we are. >> expecting this. >> deal between. >> the ukrainian president zelensky and president trump where the u.s. would share in

profits from rare earth minerals. and i just wonder how. >> big of a player ukraine is, and whether this is any kind. >> of game changer. >> for the united states. >> so they are. certainly a big player in terms of their reserves. >> but the problem. >> is. it's very. >> different to have. proven reserves and. >> to have actually accessible reserves. and there are some parallels here with what we see with greenland, in the sense that their geological surveys show all these deposits. but if it's really hard to access, it might not be economical. and that's really why we haven't seen ukraine be a larger player thus far. they have all these deposits. but so far prior to russia's invasion, they weren't able to attract foreign capital to have that investment, to have those partnerships in order to access all of that. and so this is certainly, you know, beneficial for ukraine in the sense that they need that foreign capital to come in. of course. we're still waiting on some of the finer details on how this partnership would actually work and. >> the. >> percentage breakdown here. but if we are actually able to tap those. >> it. >> could be a game changer. >> however. >> this is probably at least a decade plus down the line, given how long it does take to bring

some of these deposits online, especially in regions that russia has annexed. >> yeah. >> not to mention the lack of commercial mines. >> and even. >> some debate about whether or not the reserves are real. we'll maybe we'll get some clarity on some of that today at this event. thank you. pippa pippa stevens trying to hang on to the. green this morning as the bulls come off this very rough week. >> s&p is. >> s&p is. >> u ♪♪ [inner monologue] this is going to sound crazy. but i know these attack vectors. oh, had a little upgrade have we? ♪♪ okay, so that's how you want to play. ♪♪ do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate

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one optimized platform. never miss a moment with exclusive access to market moving interviews and stock picks. all new investing tools securely linked to your brokerage accounts, plus cnbc global market news and analysis tailored to your holdings. become a smarter investor with the power of cnbc pro, go to cnbc.com now. >> good friday morning. >> welcome to another hour. >> of squawk. >> on the street. >> i'm sara. >> eisen with. >> carl quintanilla. >> and david faber live as always from. >> post nine of. >> the new york stock exchange. it's been a tough. >> week for the bulls. >> and it is the last trading day of february. it's been a tough month. >> as well. >> s&p 500 clinging to a little. >> bit of a gain. >> but if the trend repeats that we've seen all week long, that's been fading already. >> i mean for the week. >> we are sharply lower, especially if you look at the. >> nasdaq week to.

>> date down 5.25%, nasdaq 100 down 5%, and month to date, the nasdaq comp is down 5.7%. so the pain has been felt in technology. we have another day where nvidia. >> microsoft. >> apple, palantir, meta, tesla. >> are all weaker. >> take a look at treasuries. it's been a buying of treasuries kind. >> of moment. >> for the bond market. seeing that in all of february continues today. the ten year yield 4.239%. the two. >> year yield just. >> above 4%. so we're way off that. >> high that we. >> saw in january. >> remember. >> we were creeping up toward 4.8%, almost a 5% on the ten year. we're down to 4.2 30 minutes here into the trading session. >> here are three big movers. >> we're watching shares of nvidia i mentioned under pressure again down five of the past. >> six sessions. >> now the stock going nowhere this month down more than 10% this year and off more than 20% from its recent highs. monster energy shares moving higher. top of the market today. earnings were a miss, but revenue. >> beat executives on the call. >> pointing to a, quote,

resurgence of growth. >> in the. >> energy drink category. and then netapp, one of the biggest losers right now in the s&p 500 double digits, now down after the data storage companies revenue and guidance came in. but weaker than expected. the big economic report highly anticipated was pce. that's the fed's preferred inflation measure. and the good news is it came in in line with what was expected. and also mild. tame didn't feed into this narrative that inflation is flaring up again. at least if you look at the fed core pce you take out food and energy. that's what the fed's been paying attention to. we got a 0.3% gain on the month. and then there's the year over year figure. >> and that. >> was good. and as you can see it's been much lower than it was. it's the lowest annual figure that we saw since 2021. so carl. >> that. >> was a bit of a sigh of relief that we didn't get a hotter number, especially because january was hotter on the on the pce keeps the fed on hold. doesn't really change anything. i think the bigger swing factor now is what happens with jobs. we're going to get a jobs report

next week. there's been some evidence in jobless claims and some of the survey data. jobs market may be cooling off, but chair powell has said if we see labor market weakness, we're prepared to cut interest rates. does that mean they'll go sooner than all the way at the end of the year, which is what the market expected a while ago? will they go as soon as july, maybe now, which is starting to get priced in. that's the question. >> yeah. >> we watched claims. >> yesterday. >> three month. >> high, biggest. >> jump in five months. >> and then anecdotally the announcements of layoffs from chevron, southwest, starbucks, meta, kohl's, estee lauder yesterday autodesk hp at one point does that not even talking. >> about. >> federal federal workers. >> yet the. >> federal workers to i think is hanging over the market a little bit about how big those cuts are going to be and whether that's going to take their toll on the economy, what the what the other cuts are going to be ultimately. i mean, we did get some some spending numbers and the personal spending numbers that were also weak down 0.2%, inflation adjusted down 5.5%

month over month. so maybe some concern around the consumer spending. although diane swonk made the economist, made the point last hour that there were winter storms in the south, so this could always be weather related. we'll continue to see what we get. nobody's talking about recession or anything like that. slowing down. >> recession expectations. >> and umesh and conference board have been creeping up. >> yes, watch what they do, though, not what they say. right. and but yeah. no, i've been mentioning the survey numbers a lot. there's also trade tensions and tariffs and no question that's been sort of weighing on things. the kansas city fed manufacturing survey, which they put out this week. earlier they did a special question in there about trade. and they asked businesses how do you believe recent trade policy changes will affect demand or revenues for your business over the next year? the good news is most of that 40 more than 40% said no change, but 26% said lower demand or revenues over the next year, and 6 or 7% said

significantly lower. so that tells you that business is not excited and not and not hopeful about what we're facing here. on the tariff policies. there was a poll on consumers for the harris poll that came out this week, asking a survey of more than 2000 adults what they think tariffs are going to mean. 59% will raise the cost of everyday goods, which just gives you a little bit of a taste of how people are thinking about it. but as far as how the white house is thinking about the negative reaction from wall street, this one really stood out to me. so the newly confirmed newly minted commerce secretary, howard lutnick, in an interview this week, was asked about companies warning about tariffs. and here's what he said. wall street companies look at one at a time, right? if i'm importing goods and i have a tariff on me, how is that going to work for my shareholders? wall street analysts don't look at america writ large, american people writ large. donald trump was elected by a majority of americans to take care of

america. and if that doesn't work out for your particular company, i'm sorry. and the reason i highlighted this is because there is this view out there that maybe there's a trump put david, maybe, maybe the maybe there's a pain threshold. the president doesn't want to see the markets. crater president doesn't want to see companies get hurt and performance. but i do think that this was notable from secretary lutnick that, you know, he's thinking about americans writ large, not necessarily about the s&p 500. >> well, you've also made the point that it's not clear that it is going to be inflationary, or at least if it even was, it would be one time in nature. but it could impact demand, which obviously also impacts the overall economy. >> sure. and that's one of the things. >> we're talking broadly about tariffs now. >> and i think. >> that's. >> what the. >> bond market's telling you. right. if the bond market was worried about inflation you'd see higher yields. bond market may be worried about stagflation or lower growth coming from all of this. which is why you're seeing lower yields and why the equity market is not responding positively to it. we've seen periods where the equity market likes these lower yields, right. it's stimulative. it's better to

have lower mortgage rates but instead equity market when mainly tech stocks really are giving a thumbs down. and that feeds into whether we have, you know, bigger risks of a slowdown in the economy while inflation stays a little elevated. >> speaking of tech, it's been a tough month for the broader markets. techs coming off the worst day since january. s&p, nasdaq on pace for their worst week since september. all three major indices firmly in the red on the month. our senior markets commentator mike santoli is here to break it down. i love this stat out of bespoke on. >> the end. >> month to. >> date. down six is. not far from what the index did. >> the month. >> covid broke. that is true. yeah i mean it's a little bit of calendar stuff. i think they also said it's the fastest 5% drop in the index over this short period of time since september 2020, which is interesting because that was a very sharp, sudden, swift correction in an otherwise uptrending market. you things have gotten really overheated into labor day after that initial 2020 rally. yeah.

there's no doubt that it's been this erratic action back and forth. and we've we've kind of on a net basis, lost value in the indexes on some level. not all of it should have been unexpected. if you stack up what the conditions were at the start of the year, hyper concentrated market, high expectations both for growth and policy levers to kind of work in favor of markets. we knew that the beginning of post-election years tend to be weak. we knew that after two back to back 20% up years in the s&p, you usually can't expect. so in other words, being flat at the end of february doesn't really disqualify this market as just being kind of in a routine consolidation zone. i do think the issue, though, and it gets to your point, which is the market can usually deal with kind of one thing going less than right. but you do have this kind of slow motion growth scare deceleration story along with this stampede out of high value, high momentum tech, high expectation tech. and that's been a little bit too much a broader market. i always say

this is not a stronger or more stable market. if you don't have the anchor of the big seven, which are a third of the index. sometimes things just get, get, get dropped along the way and you have a little more of a higher volatility backdrop. >> when you talk about high momentum or, you know, tech, i mean, even within some of the big names there's a differentiation or those that have moved so much that are part of that cohort in multiples. i mean, yeah, you know, i can pick out a name for you that's trading at 20 times. and by the way, then the backdrop is we've seen no diminution in spending. that would seem to at least confirm the fears of some investors. >> that's right. no, you haven't seen it. what you've seen is the market unwilling to pay today for assumptions that multiple years are going to be just as strong? i was looking back at apple's valuation in the immediate post iphone boom years. they had a similar trajectory of nvidia's like doubling revenue and earnings 2 to 2 years in a row. it's

stepping down to 50% this year, stepping down to 25% next year. almost unprecedented amount of incremental growth on this bigger base. >> yes. >> apple had a similar situation. the multiple was compressed constantly. it went to like ten times earnings because the market was unwilling to say a hardware company is going to kind of get all these cycles right. eventually, the market was persuaded. it became a services business. it's now the most defensive mac seven company. so anyway, something like that's happening with when it comes to nvidia at least. >> interesting. >> so you could expect the multiple might continue to compress and or even if the company continues to perform at levels that are i don't know if it's. >> going to go the same, same way. the overall market's more expensive now. so, you know, maybe it's sort of just goes closer to the market multiple or just you can just understand why it is. also, i think we're at a time where they better start talking. what they going to do with the free cash flow right now, next year, supposed to be 100 billion in free cash flow. they don't need it. they don't spend a lot on capital. so it's kind of an interesting situation

just on its own in terms of nvidia and the rest of the market. i do think it's just dealing with, you know, can the banks rescue the market, meaning the stock's up right today. >> it really a growth scare and a stagflationary environment. why would the banks be. >> that's right. that's right. it's i wouldn't say it's stagflationary i would say it's you know decelerating. and you know the other piece of it is to the extent that you came into this year with your one of your top three talking points was outbreak animal spirits by businesses, by investors. everybody's going to grab for risk. that has been complicated by the policy noise. no, no. and it's totally plausible that it could happen. but the policy noise and the fact that we have all these deadlines and these uncertain effects, i think, is getting in the way of that piece of it, if nothing else. but yeah, banks are doing great if you the thing is, if you wanted to bet on an economic acceleration or comeback, you're buying european banks, you're buying hong kong, right? right now it doesn't seem like it's the high leverage play to buy us industrials, which have outperformed for two years going

into this phase. >> i would add, when it comes to animal spirits and uncertainty, certainly we're seeing that reflected as well in the dearth of deals, for example, m&a, which again, we expected would be going gangbusters perhaps even by now, doesn't mean it won't for the rest of the year. mike. thank you. let's turn to washington now. ukrainian president zelensky is set to meet with president trump. that's about an hour from now. eamon javers is at the white house. what are we expecting eamon. >> david. >> enormously high. >> stakes here at the. >> white house. >> today for ukraine. >> for the. >> european economy, more broadly, for. >> the future. >> of the. >> us russia. >> relationship as vladimir zelensky is expected here at. >> the white house today. >> at about 11 a.m, he's going to meet with president trump. the president has been pushing the ukrainians for a deal on minerals. he wants the united states to be reimbursed financially in some way, for the military aid that. >> it has given. >> to ukraine over. >> the past several. >> years of the ukraine russian war. >> here's what the. president had. >> to say. >> yesterday about that deal.

>> the minerals agreement will provide the basis for a more sustainable future relationship between the united states and ukraine, and thus stimulate the long term prosperity that will help the ukrainians rebuild their country. >> treasury secretary. >> scott bessent. >> said yesterday. >> that this. >> deal is done. >> one of the questions we have, though, are what. >> are the details. >> of the deal? we've been talking to a number of sources behind the. scenes here through the morning. >> trying to. >> peel out some of the. >> actual specifics of what this agreement is. >> going to say between the united. >> states and. >> ukraine when. >> they sign it later. >> on this morning. >> don't have. >> all. >> those specifics for you. one question that i would. >> raise. >> though. >> david, is you heard the president yesterday talking about minerals. one of the questions here is what does this imply for the rest of the ukrainian economy? >> what about. other ukrainian. infrastructure such. >> as ports. >> pipelines. >> oil and gas? >> are any of those details. >> included in this agreement as well? what percentage.

>> ownership of the revenues of those industries does the. >> united states. >> get as. >> part of this deal? >> how much money will be turned over to. >> the us. >> treasury in future years? >> i can tell you that the white house views this. >> as a significant stepping stone. >> to a us. ukrainian relationship. and a pivot. >> to the. >> future of the us approach to europe. they're very. >> bullish on. >> this deal here at the white. >> house. >> this morning. i can tell. you what's actually in. >> it though. still working. >> on that. david. >> i think another thing that could be a win here is that it's a it's a counter to china, because china controls a lot of the world's rare earth mineral deposits and a lot of these really important commodities. my question is what does ukraine get? is there a promise of more aid, military aid to fight this war with russia? >> yeah. i mean, the implication is. >> you know. >> that there. >> will be no more. >> u.s. military aid. >> if zelensky doesn't sign this deal. >> so in. >> that. >> sense, zelensky would be signing a deal here, really.

>> under duress, right, of an existential threat. >> to his. >> country in the united states, holding. that aid. >> over his head and saying. >> you know, you better turn. >> over the mineral rights. or else no more. >> military aid. the question is. in the. agreement that. >> we see later today. >> if we do see the. >> terms of it. >> will there be a specific commitment from the. >> us side to military aid in exchange for minerals? >> and then the other. >> big question that came up yesterday in the meeting with. >> the uk prime minister, keir starmer, who was here, is. >> will there be a us guarantee. >> security guarantee for any peacekeeping troops that are put into ukraine to separate. >> the warring parties? >> that is. >> if, say, british and. french troops go in. >> as peacekeepers in ukraine. >> will. >> the united states guarantee their defense if they're attacked. >> by russian. forces or not? >> that could. >> be a. >> big hinge. >> point on whether the europeans are willing to put in troops, whether they're backstopped by the united states or not. all of that. sara, still in negotiations, apparently, at this hour. we're trying to work on some.

>> of these. >> details here. >> we'll get them to you as soon as we can. >> all right. it's been a big week of foreign leaders at the white house. eamon, thank you very much. you bet. as we head to break, here's our roadmap for the rest of the hour nvidia trading in bear market territory tesla tanking 30% this month but apple looking like a safe haven. how to navigate the tech trade right now. >> plus we are counting down to those tariff deadlines. we're going to discuss what's at stake for the automakers. >> and the. >> health of housing. a lot of weak data out recently. >> what that. >> might. >> mean is the spring selling season. >> gets a little bit. >> closer as squawk on the >> closer as squawk on the street continues. 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...

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>> for thoughtful. >> living. thuma. >> welcome back to. >> squawk on the street. been a rough time for chips rebounding this morning? sm is up about a percent, although earlier today got to the lowest level since september that atf on pace for the worst week since september of 2024 and the worst month since 2023. big laggards this week include names like marvell, onsemi and of course, the big one, nvidia. >> yeah, we're going to talk more about that right now. tech of course, has been facing some pressure as we near the end of trading for this month. worst day since january was yesterday. nasdaq on pace for its biggest monthly drop since september of 23. joining us now is fidelity investments portfolio manager adam benjamin. adam, good to have you back in video, which we were just mentioning, not an insignificant component of both of the portfolios. i'm looking at that. you run the select

semiconductors portfolio. i think it's 23% at least the latest numbers i have and 20% of your select tech portfolio. are you worried at all about nvidia? >> my job is. >> to worry. >> that's what i do every day. i joke that i had a full head. >> of hair when i got into this business, guys. >> but look, i've been following the semi industry for 20. >> plus years. >> it's a volatile industry. >> not everything. >> is up and to the right. and you know what? >> what this is proving. >> is look you. >> know. >> we've seen drawdowns. >> in nvidia. >> over the years. it has. >> not been just straight up. >> you know. >> over the last couple of years. so look i think it will be a bumpy ride. but i think. >> what people need to realize is this is. >> really hard technology. >> you know, they. >> struggle with blackwell. >> back. >> in the fall. that's now. >> in full production. >> and they're moving forward. >> and this technology. >> is going to. have different periods. >> of life to it. >> and people need to. >> you know, get. >> used to that, that, that, you

know, i know. >> you guys do. >> a great job reporting. >> on the day to day or the. >> inning by. >> inning, but this is going to take. >> some time. >> i followed a lot. >> of areas in technology. >> over the years, and ai is. >> the hardest technology to. >> to adopt. >> right. all understood. and you're right, man. we spent a lot of time talking about nvidia, but not not not for without good reason. you know, i wonder though, adam, the quarter that was reported was, i think well regarded by many. i would assume you're amongst them in terms of the numbers that were put up and what it means for the future. we've seen no real diminution in spending from the hyperscalers and others who buy their products. and so i guess, given the stock hasn't done much of anything for, let's call it, six months or so, what's going to be the catalyst that is going to have you realize what you expect? yeah. no, i think that's. >> a great point, david. >> i mean, it's it has. not performed particularly well in terms of the stock for. quite some time. and there are these. periods of. consolidation that has to happen. i also.

>> think there's. >> some some interesting. >> things going on in terms of grossing. >> in the hedge. >> fund community. we got month. >> end that. really unraveled yesterday and we'll see how. >> today plays out. >> but you. >> know. >> we're really. >> not. playing for. yesterday or today. >> we're playing for a much longer period in duration. >> i think. >> really, you. >> know, the roadmap. >> you need. >> to be thinking. >> about with. >> nvidia is. >> kind of what they've. >> laid out and that. >> you know. we're still really early. >> in inference, you. >> know, really requires. >> 100 x compute. >> and so you're. >> still early in seeing these. >> agentic ai models. >> out there. >> you're still. early in. terms of. >> physical ai. you're going to see gtc. >> in a. >> couple of weeks. >> that's their. annual developer conference. i think. >> that will. >> be a catalyst. and you'll go into. >> computex in the summer. >> that will drive more innovation. >> you're just. >> going to continue to see. >> this this march forward. >> and so. >> i just think people. >> need to be patient. >> so i know you guys like. >> to report every. >> day. >> but. >> you. >> know. it'll be time. and the. >> company has. >> you know. >> progressed pretty. >> significantly from where they are. i think mike.

>> was talking about. >> you know, 100 plus. >> percent growth. >> at this scale, you know, at a $35 billion data. >> center. >> business is pretty. >> significant versus. >> where it was a. >> couple of years ago. >> when i look at the top holdings besides nvidia, you've got broadcom, marvell technology. those have been favorites on the i trade micron lam research. you don't have amd i'm curious why and who which other semiconductors do you think are on the leading edge here after nvidia. >> oh look i mean you know there's a lot. >> of ways. >> to play ai. >> and you. >> know. >> we've been focusing on this for several years. and you know we have to do the. fundamental research way. ahead of time. you know, because of the asset. >> base that. >> we manage and because the fundamental approach that we take. and so, you. >> know, we've tried to. identify those companies that are going to. >> have the. >> biggest fundamental benefit from ai that will see. >> their businesses. >> transform clearly identified. >> in nvidia. >> as the full. stack solution. >> you mentioned a couple

others. >> that are are. >> seeing their businesses. >> transform, you know. >> from ai. additionally, we. >> have to stay. >> away from those companies. >> that i call pretenders. >> you've seen in. >> the. >> market a. >> lot of companies that have, say, 10%. >> of their revenue. >> exposed to ai and the stocks have gone up, you know. >> massively. >> actually disproportionately. >> to say, an. >> nvidia for that example. so i think, you know, look, that's what people need to. >> be. cognizant of. they need to be cognizant of. >> you know. what they own. and, you. >> know, don't get. >> disconnected with. >> what the stock does. >> versus what. >> the. >> fundamentals are and who is really benefiting. >> from ai. because. >> there are. >> other companies. >> that. >> are on. >> the other side. >> of this disruption, for sure. >> you've seen this. >> in. >> software, you've seen it in semis, you've seen it in services, you know, across. >> all of tech. >> and you're going to continue to see disruption. >> you know, both positive and negative. >> yeah. along the line of questioning sarah just asked. it is interesting sometimes to look not at what you own, but what is not, at least certainly representative of the typical weighting in an index. your tech

portfolio doesn't seem to include a large amount of alphabet. i don't see it, at least in your top ten or meta. you have an issue with either one of them? >> yeah. no, actually. so the internet space. >> actually came out of my tech. >> benchmark back in 2018. so that's com services that's managed by another portfolio manager. >> so you know within the. >> tech space. >> those names. >> do not. >> get included. i have. >> the opportunity to go out of benchmark if i want. but but for. >> the. >> most part you know those are great names. they're benefiting, you. >> know. significantly from. >> some of this. >> ai transition. >> as well. >> all right. that explains it adam. always appreciate you taking a little time here. look forward to talking again soon. thank you. thanks guys. >> as we go to break this morning watch. bitcoin got to 78 two this morning. but right now. >> back up to 80. >> 4k on pace for the worst week and month in about three years. and speaking of laggards check out. >> the. worst performers. >> on the s&p for the month. >> on the s&p for the month. with the dow now up 242.

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>> morning john. >> all right good morning carl. we'll start. we're going to start with shares of dell technologies which are lower by just around maybe 4% or so now, 5.5% after the computer hardware company and services company reported mixed results. earnings better than expected, but revenues fell shy of estimates. its current quarter forecast was also below estimates, while its full year profit forecast better than expected. dell also raised its dividend by 18% and announced a $10 billion share buyback authorization. sticking with the hardware side, shares of hp inc. down roughly about 6.5% or so after the maker of pcs, printers and other hardware reported worse than expected profits on better than expected revenues. hp gave some softer than expected current quarter guidance, due in part to costs linked to moving parts of its supply chain away from china given tariff policy. so those shares are down. shares of rocket lab, which are now up 2% after falling post-earnings. the maker of rockets and spacecraft, had posted a quarterly loss, in line with expectations slightly better than expected revenues. but it's forecasting a bigger than expected loss for the current quarter on lower than

expected revenues. it also delayed the launch of its neutron rocket to the back half of this year, and we'll end on a broader check of chinese related stocks largely lower today. shares of the biggest u.s. listed shares of chinese companies like alibaba, didi holdings, jd, netease all taking a hit after china promised to retaliate against additional tariffs being proposed by the trump administration. the kraneshares china internet etf, ticker kweb, also down by roughly 2.5% as well. so, sarah, lots of red on the screen so far today. i'll send things back over to you guys. >> yeah. although overall overall market is recovering a little bit here. s&p now up half a percent. nvidia turned positive. so did a lot of the tech stocks. tom thank you. still ahead north american trade war is brewing. tariffs set to take effect in mexico and canada monday at midnight. we're going to head to washington for the latest negotiations. plus what does it mean for the automakers? one former ford ceo calling the impact potentially devastating. he joins us to explain next. back in a moment.

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>> sale and make your dream office a reality. >> welcome back. i'm silvana. >> henao with your cnbc news update. white house officials say president trump will sign an executive order to make english the official language of the u.s. for the first time. white house officials say the order will also rescind a federal mandate issued by former president bill clinton, requiring agencies and recipients of federal funding to provide language assistance to non-english speakers. mexican cartel leader. rafael caro quintero is due to be arraigned today on trafficking charges in a u.s. federal court. he is one of 29 cartel members extradited from mexico to the u.s. on thursday. quintero is the founder of one of the most powerful drug cartels of the 1980s. the handover comes as president trump has criticized mexico over its lack of progress in curbing drug flows into the u.s. and the vatican is making alternative plans for ash wednesday as pope francis remains hospitalized with a

double pneumonia. a cardinal will preside over the march 5th ceremony and procession that begins the lenten season. the vatican says the pope is improving, but doctors have not declared him out of danger entirely. sara, i'll send it back to you. >> okay, silvana. thank you. president trump's tariffs on mexico and canada set to take effect monday at midnight. let's get to megan costello with the latest in washington. megan good morning. >> good morning sara. not much time left to strike a. >> deal to. >> avoid those tariffs. but i can tell. you both countries are now. >> in the middle of a. >> major push to try to satisfy the trump administration on this. canadian and mexican delegations have been in washington all week. meetings continue today. and both. >> countries have. >> been meeting with. >> an array. >> of trump officials, a group that we know includes at least u.s. trade representative jamison greer, the commerce secretary, howard lutnick, and secretary of state marco rubio. >> now, both canada. >> and. mexico are looking to prove. >> that they've made. >> progress on border security and on fentanyl. and so both have made a flurry of announcements.

>> just in the last few weeks. to that end, canada has appointed a fentanyl czar. they've designated. >> seven criminal organizations as terrorists. >> and they say they've. >> made six fentanyl seizures in february alone. and then meanwhile, in mexico. >> they've sent. >> at least. >> 2500 troops so far to 13 cities on the border. >> this week, they also extradited 29. >> prisoners with links to. >> drug. >> trafficking to the u.s. and since this is both a carrot and stick situation. >> both countries are also. >> warning at the same time. >> that they would. >> have to. >> respond with retaliatory tariffs and potentially. >> some non-tariff. >> measures. >> things like blocking some critical minerals exports as well. >> and guys, i would. >> just say, of. >> course we. >> have seen this game before. nothing is done until it's done. no tariffs. >> take effect until they're written into law. but a white house official tells me that the president still. wants to see more on fentanyl, that he actually wants to see fewer american overdoses. obviously, a high. bar to meet. >> any. day now. and that as of his thinking as. of yesterday. this official. >> said it's more likely than not that these tariffs take

effect at midnight on monday. >> guys. >> thank you. >> thank you very much, megan costello. our next guest says the tariffs will have a, quote, devastating impact on the american auto business, at least in the short and medium term. former ford and hertz ceo mark fields is here to discuss. mark, it's. >> good to have you. >> to megan's point about, more likely than not give viewers a sense of. what the. >> war room sounds. >> like right now at gm or ford headquarters as they try to fold in, in some cases, these these social media posts. >> well, what's happening? >> my view. >> what's happening inside. >> the. >> conference rooms at gm, ford, stellantis and the other global oems. is they're kind of looking at what's what's been at least intent to be announced right now. right. so you got, you know, mexico and canada tariffs supposedly, you know, being implemented at 25% on march 4th, eight days later you got tariffs on aluminum and steel coming in. the trump administration has

said by, you know, beginning of april they want to put 25% tariffs on all vehicle imports coming into the us. so there's. >> war rooms. >> right now that kind of lay out what are the potential tariffs on the books. and then what are the near term actions that we need to take as automakers to handle that. and in the short term it's all about looking what inventory is on the ground. i think what you're going to see, if the tariffs do take effect, you're going to see a lot of the same behaviors in the market that you saw during covid and even during the semiconductor shortage, where you're going to see, you know, oems basically bring incentives down for the pre tariff vehicles. you're going to see inventory lean out because it's going to be more difficult to produce vehicles in the us, because a lot of components coming in and the border is just, you know, administration is not capable right now of handling these new tariffs. you're going to see consumers rush to buy these pre-tariff

vehicles. so i think you're going to see a lot of those behaviors. and if you're an oem you're trying to figure out do you delay production in that. you're producing in mexico and canada right now and maybe put them in lots until there's clarification on what happens with the tariffs. you're looking again at your pricing and in your incentives right now to take maximum advantage of the inventory that you have. and then you're trying to game out. where are you going to make your product sourcing decisions and new product programs? and i believe every oem right now is just taking a pause on all that because it's very, very difficult with zero visibility on, you know, what's happening on the global trade environment. ev sales rates, you know, policies and regulations. so there's probably a huge pause on things right now. >> right. >> we're starting to get reports that the house gop might try to use would be tariff revenue to zero out or offset some tax cuts. i mean, if the thinking is that this is actually going to be counted on revenue, isn't the

notion of stockpiling inventory or waiting to see what happens kind of a fool's game? >> well, again, you know, the administration, you know, the trump administration has been very volatile around these things right now. i mean, the fact of the matter, karl, when you look at the impending tariffs from canada and mexico, half of the top 50 top selling vehicles in the us and 60% of the overall volumes could be impacted by these tariffs. and of that, 40% is vehicles priced below $40,000. so when you think about the affordability issue, the issues around inflation and things of that nature, this is where i believe, you know, the trump's end game, i believe on the tariffs for canada and mexico, particularly as it relates to the auto industry, is really about accelerating the renegotiation of the usmca free trade agreement. and that's why i think either this tariff is either going to be delayed and not implemented on march 4th, or if it is, it's probably going to

be short lived anywhere between 2 and 4 weeks. because, you know, again, the trump administration doesn't want to tank the economy, given the importance of the auto industry. but at the same time, i think their endgame is about renegotiating this trade agreement. >> yeah, an agreement, of course, that they they negotiated the first time. mark, you know, you mentioned evs also. and i think that's important here because it's not just tariffs. you know, i wonder to the extent that gm and ford obviously tesla i mean they've been reliant on certain policies that are no longer going to be in place. how big a distraction or how big how big a disconnection does that create for their business? >> well. it creates a it changes the whole economic viability of these programs because as you've seen, you've seen a lot of the automakers push back a lot of their ev investments. they've canceled a lot of investments. so there's been a lot of capital that's been wasted. part of it is because the consumer has not had the uptake that the

automakers thought they would. and the other part is that's in an environment where there has been incentive help from the government. you take that away and all of a sudden it's a net negative on top of what is a very difficult economic, economic proposition for electric vehicles. so a lot of things in flux here. and listen, david, at the end of the day, you know, it's a bit of a rubik's cube to be able to forecast auto industry when things are relatively stable. when you have this kind of uncertainty. it's almost like playing three dimensional chess while blindfolded. and i think the biggest asset right now for any automaker around the world that that does business in the us is a berth at one of the us ports right now because they're trying to get not only finished vehicles in before tariffs potentially take effect, but a lot of components, engines, transmissions, and those are high value import things that are going to be subject to this

25% rate. >> yeah, that's explains a lot about the port data that we've gotten in the last few months. mark, talk soon. i appreciate it very much. have a good weekend. mark fields. >> it explains a lot about ford share price as well. still to come from lumber tariffs to high mortgage rates. tough time for the homebuilders. we're going to take a closer look at what's ahead for the housing market in the coming months. when we come the coming months. when we come right ba power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans can help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. ♪♪

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fantastic. >> it open source the. >> reasoning model. >> that's absolutely world. >> class ai has become better. >> if you believe every customer experience is going to be reinvented by generative ai, then you're going to be building a lot of generative ai apps. >> even if you say. >> i, i don't think. >> this could be. >> deflationary in the short. >> run, it. >> may. >> very well be deflationary, you know, after. >> 3 or 4 years. but most of us for now, we're spending more money on, not less. >> it's not a pretty picture when it comes to housing data for january. diana olick is here. she's got more on what it could mean as we head into the spring. diana. >> yeah, david. >> all the. >> numbers are in and i want to focus on the most recent. >> reads, which are new home sales. >> pending existing. >> home sales. >> inventory and home prices. >> those first two are based on signed. >> contracts during january, pending home sales fell to the. >> lowest level. >> on record, and sales of. newly built homes dropped 10% month to month. now, there was a fair amount. >> of noise about cold weather,

but. >> on the pending sales of existing homes, there was actually a small gain in the northeast and a drop in the west. so that doesn't really sound like a weather thing. it is plain and simple. mortgage rates. the 30 year fixed started this year. over 7%, took. one leap higher in mid-january, and then. >> basically did. >> nothing for the next four weeks. then it started falling sharply in the last two. weeks and is now down 47 basis points from that january high. but still, mortgage demand from home buyers has still been steadily falling. now. the home builders saw sales in january, again below last year's levels, even. >> though the big public's buy down mortgage. >> rates. >> their february sentiment report dropped to. a five month low. >> with builders. >> saying they're using fewer incentives because they're not really moving the needle for buyers. that's because affordability is just that rough right now, which leads us to prices. nationally, they're up 3.3% from a year ago, according to a report from parcel labs. prices are still high, even though active inventory is improving, up nearly 28% from a

year ago. usually, those two don't move that way. sarah. you see inventory going up, prices go down. but again, this is a strange market. homes are just sitting on the market so long. that's why the inventory is up. all right diana, thank you very much for the set up. housing is where we'll start with the next guest who writes, quote, the economy appears to be losing its luster. mark zandi, moody's analytics chief economist, joins us now. i just want to pick up mark on something that diana just reported on, pending home sales, which can often be seen as a leading indicator that the level at a record low. so we're during the financial crisis and the housing crisis, how bad is it out there for housing? >> bad. >> you know, the. >> housing market is in a deep. >> freeze when. >> it comes. >> to home sales and origination volume. you know, you got a you. >> got a fixed. >> mortgage rate. i saw diana's number 6.8%. >> the average coupon on. >> an existing mortgage. so you look at all. >> the mortgage debt outstanding. >> you look at the average interest rate. it's 4%. so you

know, think about the economics of that. for a homeowner, it doesn't make any sense to sell your home. extinguish your mortgage at 4%, go buy another home and get a mortgage at 6.8. it just doesn't work economically. >> so even though inventories. >> are up, they're very, very low by historical standards. and so there's, you know. >> until we see mortgage. >> rates come. in closer to six and even into the fives, i just don't think this market is going to come back to life to any significant degree. >> i mean, they should come in a little bit. we've seen a big move in the ten year yield just in the last few weeks, even in the last week or so. mark that that could be helpful. we know this administration is looking carefully and targeting the ten year yield. the treasury secretary has said that. what do you ascribe to the lower treasury yield? do you think this growth scare is for real? >> yeah. it's real. i don't know how you. target the. >> ten year treasury yield. >> good luck with that. it's got a mind of its own. you know global investors determine the ten year yield. and of course. mortgage rates are. >> much higher than. >> the ten year yield because of volatility of interest rates. interest rates are jumping up and down and all around. and

that makes the value of the prepayment option in the mortgage greater. and thus, you know, the rate is much higher. so i sarah i wouldn't count on the mortgage rate coming in much as a result. but the decline. >> in the ten year yield and now. >> the inversion of the yield curve again, ten year yield is last. i looked below the three month and two year is growth. the economy is starting to gag on all the uncertainty that's coming out of policy being made in washington, d.c. everything from the tariffs to the haphazard cuts to government employment. and we've got the potential for a government shutdown in a couple of weeks. and then, of course, there's the treasury debt limit. i mean, there's just so much uncertainty. and of course, that's got the fed on hold. the fed told us point blank they're not going to do anything until they get some clarity around economic policy. and i think businesses and consumers are starting to say the same thing. you know, with all this uncertainty, i may not pull back. i may not cut jobs, i may not cut my spending, but i'm

certainly going to be much more cautious than all those things going forward. and it's reflected in the data. one more data point. given today's data, gdp in the first quarter is tracking now close to 1%. >> so we grew 3%. >> last year. almost in the fourth quarter of last year, we grew over 2% annualized. and now we're tracking 1% in the first quarter. so that gives you a clear sense of the trajectory here. >> yeah. >> well, mark, i have to say you did warn us. i remember when there was all this excitement after the trump win about animal spirits and deregulation and taxes. you said the tariff uncertainty could start to weigh, i guess. i guess that's the is that the number one economic risk? >> i think it's. >> all. >> of the above. i think it's got people nervous. but the tariffs are clearly for business people. you know, i think they're having a hard time with it. right? i mean it's which countries you know how high, which products, you know over what period of time. and the thing is these are these these tariff changes aren't done legislatively. this is done by

executive order. so it can change in an instant. you know, the president can decide one thing or the other and execute on that. and i think business people see that, you know, i you know, i'm a business person. i, you know, i make investments and i when i think of an investment, it's pretty simple. i open up a spreadsheet, i put in the revenues, i expect. i look at the expenses that i'm going to incur, i calculate a return. i compare that to my cost of capital. but every cell in that spreadsheet, you got to fill it in. otherwise you can't calculate your return. and i think businesses are having trouble having trouble having a hard time filling in that spreadsheet. >> figuring that out. yeah. mark, thank you for joining us. always good to talk to you. mark zandi from moody's analytics. >> coming up on money movers. the ceo of tapestry is with us talking consumer trends and how these tariffs, at least. >> on china, might. >> impact the business. that's coming up at 11 a.m. eastern time in just a few moments. stay with us. >> real time exchange sector sword is sponsored by sector sword is sponsored by sector spider etfs.

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amazing and is something that we get to use every day. >> sources telling cnbc that mehta is planning to release its own standalone mehta i app. that would be in the second quarter. it's an effort to compete with openai's chatgpt. as for openai, well, its leader, sam altman, responded to this story on x, writing back, quoting the cnbc

article, saying, okay, fine, maybe we'll do a social app. he also added, if facebook tries to come at us, we will just, you know, reverse them. reference to that game, of course. change the change the order, uno. >> reverse. oh, yeah. >> do you. >> live in my house? >> yes. and we know obviously metta continues to sign up potential partners as well. some reporting i've done and others on that. but there's that report about their for data centers. but i'm sorry there's there the story about. the social app. >> well they've had the meta ai chatbot right for a while. and they've incorporated ai into the search feature and all of their platforms like facebook and whatsapp. right. and so they've been sort of moving in this direction, although it does remind me of some of the things we've heard from alex karp, for instance, the ceo of palantir, that some of these models are going to be commoditized. you know, he said that in response

to deep sea, for instance. yes, i guess openai, gemini. >> they're all interchangeable. you use them. the question, though, also becomes, is it really a winner take all, or are there going to be plenty? is there going to be plenty of profits for everyone? i think that's true. one of the key questions. >> who has the best data? i mean, facebook's got a lot of users. >> yeah they do. they do. >> as does x of course as well and x i all right. we got a lot more market coverage for you. straight ahead. we got the s&p up 0.6% nasdaq keeping pace at up 0.6% nasdaq keeping pace at that same level. we're b i can't believe you corporate types are still calling each other rock stars. you're a rock star. we're all rock stars. oooo look look at my data driven insights, i'm a rock star. great job putting finance and hr on one platform with workday. thank you! guys, can you keep it down. i'm working. you people are (guitar noises). hand over the air guitar. i've got another one.

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>> no. >> but bdo does. >> people who know know bdo, a cnbc exclusive chicago fed president austan goolsbee reaction to the highly anticipated inflation report. plus impact on fed policy sean ford. morgan brennan closing bell over time today for eastern. cnbc. >> good friday. >> morning again. welcome to money movers i'm sara eisen with carl quintanilla live on the floor of the new york stock exchange. happening this. >> hour. >> ukrainian president zelensky at the white house meeting with president trump. a possible deal over the country's rare earth minerals is expected to be front and center. we'll bring you the latest. as it happens. >> s&p is headed for. >> its worst. >> week of the year, trading below some key levels. bespoke pointing out the nasdaq 100 clocking its fastest 5% pullback from an all time high since 2020. in just six days, we'll

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