produced under usmca have less than 10% american parts, less than 10%. we've got to bring this stuff to america. it's got to be produced in america. >> the secretary will to be continued. hopefully we've got four seconds left. thanks for coming on today. we appreciate it. hope to see you again soon. >> that does it for us today. we'll see you tomorrow. bye. >> good tuesday morning. welcome to squawk on the street. >> i'm carl. >> quintanilla with jim cramer. david faber at post nine. of the new york stock exchange. >> futures do. >> lose some earlier gains as tariffs are. >> now officially in effect. >> china retaliates. >> bonds rally as now some retailers like target and best buy tell us when we can expect prices to rise. our roadmap begins with the president's tariffs against canada, mexico and china. but beijing and ottawa are retaliating. >> also ahead, we'll keep

following what's been tough. tesla's rough year, at least for the stock. >> there's a. >> sharp drop now in the evs it makes. >> in china. >> in terms of. >> sales. in that market. and that's weighing on the stock this morning. >> also talk a bit about target, which. >> is warning about the impact of tariffs on profits. that news is overshadowing quarterly results. those results did beat estimates. >> let's begin with the markets on track for a lower open. and the president's tariffs now in effect following yesterday's sell off. jim we do have the response from china and to some degree canada. sheinbaum and mexico says we'll learn more from her on sunday. >> right. look, i think let me just say there's just vast confusion. no one knows. i mean, the automakers don't know what this is going to mean. the packaged goods companies don't know what's mean when it comes from another country. there's no clarity whatsoever. anyone who thinks that there's clarity is just completely wrong. i like howard ludwig. i've known him for years. i mean, he's got some instances about autos, but it isn't like they've said. okay, look, here's the schedule, here's the time. like when you

were in europe and they did brexit. you got the schedule, you got the tariff. you said, okay, i know this. they haven't given us anything. we don't know what we own, what we don't know. we don't know where it's paid. we don't know if it isn't paid. do we owe them? do who owes it? does the buyer, i mean, the lack of any thought about this david is stunning. it is. this is huge amount of money involved. >> potentially. yeah. it's also it goes beyond that i think. and obviously we've talked. >> about uncertainty. >> i mean, we talk about it always every day for decades. we talk about it. but it is. higher now. and you know the conversations that i'm having, it's not just all right trying to understand and figure this out. and as you say, it's very much opaque. but it's also well, will it be in effect in ten days? will it be in effect in 30 days? will it be reversed? will it be increased? i think that raises the level of uncertainty which which is reflected in the in a premium coming out of stocks to a certain extent or a higher risk premium if you want to call it that. and then you even extend it beyond that to

things like mergers and acquisitions. you know, i'll have conversations with people as well, jim, and i'll talk about well, they'll say, well, that company might make sense to buy that company. i was like, yeah, but that's a foreign company. you think that deal will be allowed? i don't know, maybe it will, maybe it won't. but again, it adds to this overall sense. >> well, shouldn't you at a certain point just say, okay, look, if it's done in the 50 states, i want to it's you should get a premium and everything else should get a discount because they can't figure it out. i mean, i can tell you i mean, if you take a look, this is a good one. i don't know if you guys drink outlaw beer. okay. outlaws made next to. cause they decided that enough is enough. beer companies keep raising prices and raising price and raising price. so they have a case for 1299. okay, let's keep that in mind. 1299 so then you have a modelo now, modelo, which is modelo especial, which is the number one beer in the country. that's 32 bucks. that's before the tariff. so i think you're starting to get companies coming

in and underneath, and you have companies like if modelo especial gets hit by a 25% tariff, people aren't going to drink it. it's too expensive. that's what i'm thinking. i want to own domestic companies, by the way. small caps get killed every week, so i don't know what the hell's going on with them. but i think you want domestic companies that are not subject to a tax where i'm sure right now constellation brands modelo is saying, do we pay? did we get total wine and more to pay? is a customer pay? do we pay at the border? do we pay when we make? we don't know. it is such a show that it is extraordinary to me that this is america. we don't have any plan. i mean, we need a plan and. >> you're talking. >> everyone's happy to pay. we just don't know if we pay. >> and you're talking about the product that's incoming. yesterday, the president posted to farmers to get ready to sell more ag in the united states. he said, have fun. >> they can't. >> and then this morning, of course, china puts 10 to 15 on

pork, on beef, dairy, on vegetables. >> and milk products. it goes on from there cotton, corn, wheat. do you want facts? >> because the facts are so such. >> a. >> bummer right now. i mean, like i come with facts, for instance, it takes we're a year and a half away from the herd being big enough for cattle to come down in price. that's from agco. now, i could say to you, farmer david. oh my god, david, why don't you just heard why don't you take advantage of this? and you should be saying, yes, absolutely. i want to do that, mr. president. i definitely do that. and then you go back to the people who work for you and they say, were you that stupid that you had to go do that? couldn't you just admit that you can't increase the herd? then you'd say, well, i'm scared too, because you see, i'm on tv. and then i come back and say, well, why don't you stand up? then you say, why don't you stand up there? okay, there's america right now. just in a nutshell, that's america. and like, it's a great country, but you can't increase the herd. you can't increase soy. it is like you can't. maybe you can make

like 3% more. i'm talking to the to the coast. they're like making the tractors and they're trying to sell more tractors because they keep saying the president says you can grow as much as you want. meanwhile, i got a patch of, of tomatoes, probably ten, ten mile by ten mile next to my place in mexico. they all go to costco. but costco has got, you know, they can pass it on because costco has got. >> a different as well. i remember visiting the soybean fields in brazil. they went on for as far as the eye could see. one would assume that that's going to be attractive in terms of sales that they can make to china, although i frankly, i haven't checked on those sales of late, but it does change the whole dynamics of the trading system to a certain extent. we had lutnick on just moments ago. we'll listen to some of it. i was listening intently, as i know so many of our viewers were. he's at the center of this policy, and yet it's very difficult to fully understand exactly what the motives are, obviously, except that he wants to they want to increase manufacturing in a very significant way in the united states of america from beginning

to end. right. he made a talked a great deal about auto parts that are not made here, that then are incorporated in the vehicles, but again, the back and forth, the difficulty of ascertaining where the tariffs are going to be, what they're going to be on, what the impact is going to be in terms of dislocation. it's just very hard right now to know. >> okay, let's say you're in favor of tariffs. i'm in favor of a lot of tariffs i mean i watched it. thank you dave tepper i watched a piece 1997 about reagan. he says listen targeted tariffs about semis are good. untargeted tariffs create a big trade war. and all the prices go up and things can collapse. i don't think it's that i'm just saying send me a bill. i'd like to have a bill or i can voluntarily pay, but i don't know where. i don't know what to do. like if brexit, it was like fedex had to take care of it. like, is someone calling fedex right now and saying, listen, you're picking it up. you have to figure out what it is. i just think because it's so opaque, you got to go by tech since everybody hates tech, like the only companies that are not being hurt by this are the

seven. remember we all we're selling them furiously and we're buying what packaged good companies are going to get crushed. i mean i don't know that's fine. >> i looked apple still makes an awful lot of iphones in china right. so 20% more now it's already ten. so it's going up another ten right. >> that can be. >> that can be a significant impact. yes. it cost of an iphone, which is one of the more important. that the consumer bears. >> and that's you know that's a business to consumer business. >> but it sounds like you're talking more about software where you don't have to worry so much about. yeah. >> i mean, so i mean, i know copilot trouble, whatever. but i'm just saying that when i'm trying to figure out the earnings of a company that says they've been hurt, here's what's happening. they're trying to figure out what's happening to because we have no directives. there's no directives. i mean, i was hoping that that that howard would the secretary would come on and say, okay, look, here's what's going to happen when it's intercepted at the border. or we know that ups and fedex bring in a lot of it. we're going to ask

them a lot. when we had brexit where fedex, you know,ot of these companies were told this is what you're going to have to do. do you remember brexit. they had signs everywhere and said listen, this is where you got to put more money in. and here's the tariff. it was so organized. it was so organized. >> well, there's a good piece in the journal this morning about the usmca and the that that mexico and china thought they made regarding free trade and open markets. >> but you're talking. >> renegotiated. >> they got. >> had jim, you're talking about the process of the actual collection. >> well yeah. but i'm. >> saying a lot of people are more focused on the broader implications of what it's going to mean in terms of the cost of goods and the difficulty. >> i think, all right. >> changes in sources. >> and i'm saying that you can't know those until you see the regs. i would love to say, okay, look, if from now on, fosforo, we pay 25% of something to someone, right? >> you don't know where. you're right. this is your mezcal brand that you obviously i'm happy.

>> to pay. i'm not a scot. i'm not a scofflaw. i don't be a scofflaw. >> i assume you will be informed in time. >> you'll be informed. but you see, that could inform your decision. let's say we're like the. we're like the small. we're not even a pimple. not even a blackhead. >> understood. >> but i can tell you that the big companies like right now, the stance this is a way to put it, the stance of modelo, of constellation brands number one beer in the country is we're not going to get a tariff because you can't make modelo in michigan. that was their stance. well, that stance seems to be at odds with the reality. so they don't know what to do. how can they know what to do when they didn't think this would happen? that's the problem, right? a lot of us didn't know what was going to happen. >> that stock has been down lately, not on the concern about tariffs, as much as just the fact that people don't seem to be drinking. >> as much. they're not healthy. and gop cannabis legalized. >> or even the journal today, lsd, ketamine, and i mean all.

>> sorts ketamine is that's, you know. j&j ketamine. >> the story today. yeah. >> but i'm just saying that they don't if you were saying it won't matter, it won't happen. well, you're really in a pickle if you're saying if you're target. like what? brian cornell i know, brian, last week i did a walk and talk. well, no talk, but i mean, i talked to him, but it wasn't mike. right, in clifton, new jersey. and you know, today he comes out said, listen, who knows what's going to happen? well, the who knows what's going to happen means sell. that's what people do. target. target was at one was up $2 at 630 at 630. yep. hey by the way, get this. i got a funny one. david, you ready for a real a man walks into a bar at 3:30 a.m, and he buys nvidia at 115. ba dum bum. >> ba dum bum. >> let's see. nvidia. >> yeah. 111 pre-market. that's. >> yes. that's really. >> approaching a 30% drawdown. jim mentions china. let's get to china as that country does retaliate against these tariffs.

our eunice yoon is in beijing with the latest. hi, eunice. >> hey, carl. well, the chinese government, as you guys had mentioned, had threatened all necessary measures, countermeasures when it comes to their reaction. but this batch actually was relatively limited minutes after president trump's tariffs had kicked in, china announced tariffs on the agricultural sector. for the main part of this was 10 to 15% tariffs on imports of soybeans, sorghum, beef, fruits, chicken, corn, cotton, wheat, some of the. in one case, or in some of the cases, china's the biggest buyer of these products, such as soybeans and cotton. during president trump's first trade war, china had also targeted agricultural products, and at that time it was really seen as a political calculation that china would want to target president trump's political base. now, this time, the chinese also imposed various business restrictions on more than 25 companies. ten of them

were added to an unreliable entity list, so they blacklisted, 15 added to export control list. a lot of these firms were, for the most part in the defense industry, don't have a whole lot of business in china, if any at all, and had already been sanctioned by beijing. the one interesting company was among all of these was aluminum. this was the company that had been blacklisted in february after president trump's february tariffs had kicked in. that company has now been banned from importing its gene sequencer machines, and china does account for 7% of aluminum sales. that was the most high profile corporate among the group. so it does give you a sense that we're seeing a lot of action, a lot of noise with these measures, but no household names. >> eunice, our commerce secretary, was on a few moments

ago really emphasizing the element about fentanyl. and the journal piece today reads chinese officials have said in recent weeks that u.s. tariffs make them less likely to help solve the fentanyl problem. is that true? >> well, for president xi jinping, he is not going to be like the canadian or mexican leaders, not going to be seen as somebody who would pick up the phone and try to work something out with, with president trump and, and be seen as as kind of bending the knee to president trump, to the chinese public. so president xi would probably go to trump to on his own terms. and that is a really important for the chinese leadership to make sure that their public knows that or at least believes that president xi is in control. >> eunice, when it comes to some of these agricultural products, chicken, wheat, corn, cotton, you know, 15% tariffs, are there

other are there other places the chinese are going to be able to go to find those kinds of agricultural products at a lesser price, do you know? >> yeah, definitely. they've been doing this. they've been diversifying since 2018. so they've been moving to looking at brazil for the most part for, say, corn. they've been trying to reduce a lot of their reliance on the us when it comes to these agricultural products. and that's expected to continue, especially in this climate. >> now, eunice, i also remember, i'm sure we had conversation around this at the time when we reached under the last trump administration, there was a deal reached with china in some way that involved them buying a lot of agricultural products. i don't remember the exact target number, but i don't believe it was ever met. >> right. that and that has been one of the sticking points that the trump administration, as well as a lot of other folks in the us, have said about that 2020 trade trade deal, the phase one trade deal. there's been

some discussion, though, ironically here, that the chinese will want to return to that 2020 phase one trade deal that they would agree to buy a lot of us products, not only agricultural products, but from their perspective, a lot of high tech products, not something necessarily that the us would want to see. but there is this belief that the chinese leadership does prefer going back to that kind of grander economic deal. >> yep. phase one. that's a deep track, eunice. you will talk soon. eunice yoon in beijing this morning. got some other movers to get to this morning, including target warning about the tariffs impacting profits. we'll get to best buy. we'll get to autozone. we'll get to okta. take a look at the pre-market here. as we are stuck in the red after some early pre-market gains. don't go anywhere.

gains. don't go anywhere. >> i. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic. icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot. custom ink helps us motivate our students with custom gear. we love how custom ink takes care of everything we need so we can focus on the kids. we make it easy to wow all your groups with high quality custom apparel, accessories, and promo products,

all backed by our guarantee at customink.com. >> some people. >> took deep seek. >> to mean actually that you need less compute. >> from a demand perspective. deep seek was fantastic. >> it opened. >> sourced a 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 the ai. i don't think this could be deflationary in the short run. it may very well be deflationary, you know, a

our xfinity network is built for streaming all the stuff people love. how can it get any better? -i'm just spitballin' here, but, what if we offer people apple tv+, netflix and peacock? for one low monthly price. -yes. so, people could stream the shows they love. and we could call it... xfinity streamsaver! mmmmm. what about something like: streamsaver? ooooooo. -i love that. add streamsaver with apple tv+, netflix and peacock included for only $15 a month... and stream all your favorite entertainment, all in one place. >> nasdaq 100 laggards mr. as jim likes to call him at the top. we talked to michael saylor yesterday, but watch nvidia at

109 that slices through yesterday's low of one 1228. that was the low for the year so far. we'll get cramer's mad dash in the opening bell in ten minutes. >> the number of public companies is shrinking while the number of private companies is increasing. at franklin templeton, we are expanding access to the growing opportunity in private markets, offering the potential for greater diversification and enhanced returns. through our world class specialist investment managers. we are empowering advisors with solutions to build the portfolios of the future today. portfolios of the future today. alternatives by franklin [announcement call] final boarding call. i didn't use agentforce, the powerful ai from salesforce, so an ai agent didn't send me the fastest route to my gate, which has changed. [airport bus engine] [whistling] i'll tell the pilot to hold the plane.

they've got an app for that, dude! agentforce helps heathrow create a first-class experience. agentforce. it's what ai was meant to be. is this. >> a little more your style? >> retiring wealth isn't. >> a. >> guarantee. >> it's a goal. it's easy when markets are going up. >> but what. >> about when they're not? that's why you need. >> this call for retirement survival kit, featuring your guide to. surviving market volatility. our stock market outlook plus the fisher investments difference three indispensable guides. yours free for calling 1-800-213-5317. >> fisher investments. disciplined approach. >> will help see you through the market's ups. >> and downs. >> and. give you. >> the confidence. >> you need. >> to reach a comfortable retirement. and our. >> fees are. >> structured so we. >> do. >> better when our clients do

better. >> call now for your free retirement survival kit. 1-800-213-5317. see if your. >> dream retirement is on track. >> if your. portfolio is $1 million or more, call fisher today. call 1-800-213-5317. the most sacred thing in life isn't the path. it's the freedom to choose it. >> your freedom. >> is the roar of one man's engine and the silence of another's. so choose, but choose wisely. choose what makes you happy. my friends, my family, my work. make me happy. this jeep makes me happy. even though my name is paul. >> for me, squawk. >> box is breakfast with most. >> interesting people in the world. >> it's a privilege. >> to get to talk to them every day. >> it's more entertaining than any other morning show. but you might get some useful information. >> squawk box weekday mornings, 6 a.m. eastern. cnbc.

>> all right. welcome back. we got about seven minutes before we get started with trading here at the new york stock exchange. stocks are looking to open lower after what appeared to be a bit of a rally in the aftermarket yesterday. meanwhile, we get best buy earnings. let's get to them. >> best buy corie barry doing a magnificent job ceo. okay so david the numbers out today were much better than expected. not better than expected, not better than feared. much better than expected. online was very good too. there was, without a doubt, a shock when you saw how good these were. because what it said is that corie barry and raised the dividend to in this environment is just doing incredibly well. and then there was this paragraph at the end of her talk where she said, of course tariffs are coming. get a lot of stuff from china and mexico and we're going to have to raise prices. we're not sure how much we have to raise prices. right. and then while she was talking to watch, that's why i was saying since we don't

know the extent and who pays whatever, we're just getting these blanket. look, someone's going to have to pay and someone's going to pay. the stock suddenly goes from 87, david. from 87 to 81. okay. 81. so the people who bought it before the market, they were, of course, idiots. that's okay. you have every check with the jefferson was pro idiot first amendment. but what happened here is you have a company that did a great job, and that great job is null and void. and that's what i'm concerned about. >> by the concern about tariffs, which obviously we. >> spent the. last 20. >> minutes talking about. >> you know, look back and forth while you and i were talking. yes. other than the fact that i thought your shirt combo was great. i said, look, i'm focused on the minutia because it's not minutia, because if she had been able to say, listen, and you're going to cut $0.07 out of the quarter, we would say, oh, glory be this is a good story, right? but it's not like that. >> no, there's a lot of moving parts right now, literally. and it's very difficult to figure out other. >> than april 2nd and maybe china's 25. we don't know. i

know, but maybe that's what they wanted. >> more uncertainty, higher risk premium. they wanted that. just. >> so we're going to start making what magnavox in the us is that the plan? >> magnavox. all right. i have one of those. i remember i bought it at the place next door to my old apartment. all right. got an opening bell five minutes from now. by the way, you can always catch us anytime, in anywhere. listen to and follow the squawk on the street opening bell podcast. >> when breaking news or market volatility affects your portfolio, we are there for you. >> what i learned from jim is that, you know, to stay calm, not react to any single event, but really have a

well, i'm a local company in chattanooga, tennessee that gets to save lives all around the world through tiktok. i didn't have the millions of dollars to put towards marketing, and that was the hardest thing. when i posted on tiktok that went from maybe a few hundred people knowing about my product to millions. (♪♪) we were able to make over $300,000

in less than two days. it saved my business and it saved lives. ok guys, instead of getting weathertech, i saved a few bucks and got some cheap, foreign made floor mats. but they really stink, so put these on. ♪♪ really, gary? mom, i'm thirsty. don't settle for cheap, stinky floor mats. at weathertech we make our floorliners and cargo liners here in america, out of pure non-toxic american materials. dad, next time get weathertech. they don't stink! i'm on it. find out everything we have at wt.com. >> we've been navigating change for 125 years. always looking forward, anticipating risks, and trusted to manage over $1 trillion in assets worldwide.

solving for the needs of investors today and tomorrow. that's the power of nuveen. >> the opening bell is brought to you by nuveen, a leader in income alternatives and responsible investing. >> this is not a trade war. we are going to reset trade policy on april 2nd. you've got china's got huge tariffs on us. huge tariffs on everything with us and canada. you just talked about why do we produce cars in canada. they've had an invitation. canada and mexico had an invitation to trade with the amazing economy of the united states of america. and they have abused that invitation. and the president is going to reset that. but that's april 2nd. that's not today. today's opioids i know people worry about short term, but we are going to bring jobs. you are

never going to see the amount of production come back to america. then donald trump is going to bring back to america. >> how our. >> commerce secretary lutnick on squawk in the last hour talking about the tariffs. of course, jim, we already have the biggest rise in manufacturing construction since the late 60s, right. >> look, look. and i know that they're really concentrated on don't worry about the short term, which is wall street. what i'm more concerned about is how about the short term? if you're an executive at ford motor, you were told to that you could do canada. so you did canada. and now canada a mistake. and you're trying to figure out, okay, i want to quickly pivot away from my mistake. i have to do this because i don't want to make my cars too expensive, but i have no ability to pivot, not at any time. >> soon. >> because i don't make that stuff. so if i don't make that stuff, i have to build factories, this and that. so suddenly i got to charge more

for my car, and that means there'll be less fewer cars sold, which is a vicious cycle down. and i'm saying that if you go listen to president reagan on this, a republican president, by the way, he totally disagreed. and i like reagan. i thought reagan had a real good rap on this. so there i am. >> bye bye. >> bye bye. bye bye. how about like. no. let's find something we can buy that is not caught in the crosshairs of what lutterworth just said. that's all. i mean, maybe j&j is not that caught. j&j was at 168 yesterday. it obviously knows stock was at 144 when this stuff started. >> yep. >> we're going to talk about some consumer staples. there's the opening bell maker of analytical laboratory instruments and software. nasdaq software supply chain platform jfrog. we do have the state of the union address tonight where

there's some argue, some desks are saying is there an off ramp that he could possibly give. tonight we got to shut down worry in a couple of days or weeks. obviously some clarity on doge. we haven't even mentioned that. >> this morning. >> no, i mean, i think clarity is not what they want. i think that they are hell bent on no clarity, which then confuses people and freezes people, and then they'll unfreeze them after the clarity. maybe there'll be some clarity then, but i don't, david, i don't get the sense if you wanted to produce clarity, that you would necessarily do it this way. what are you laughing about? we just asked the state of the union. will they offer some clarity? i don't, best price is 77. i think the most clarity. >> we're going to get, we just received from howard lutnick in terms of what we can expect. and then april 2nd, it is it does get a bit confusing in terms of all right. we've got these tariffs now on china 20% mexico and canada 25. although oil or

energy related products from canada is 10%. but then on april 2nd, you're going to have this much broader assessment of the world, basically. and what tariffs need to be done in recalibration with what we get. so you could see a 25% tariff on aluminum and steel. well sorry. on april 2nd, unspecified tariffs on all agricultural products, foreign cars copper imports lumber imports. those are the things i think in some way that lutnick was referring to. on the second, it's unclear to me if that's an addition to what is already in place to try to stem the opioid crisis here, both by preventing mexico. really, mexico, i mean, canada, barely anything at least gets across the border that we're aware of in terms just 49 pounds, something like that, versus thousands of pounds from

mexico. backpack. >> it's a backpack is the way you. >> measure it. yeah. i don't i don't know but but i mean listen it is a you're sure it's an absolute crisis. it has been for some time a little bit better here. >> you're searching for reality. which makes you into someone that is that you're you have gossamer strings on your brain. you're searching for reality. you're trying to come up with in your brains, trying to come up with reality. and the reality is that you can't figure it out. that's what's supposed to happen. don't you want it to be able to figure it out? >> well, i don't have to worry about it in the sense of i'm not importing anything. but yes, i'd like to figure it out so that i can explain it. right. but the fact is that if you are an investor right now, what your response is likely going to be is, i'm not going to buy as much or i might sell some stuff, right? right. >> but i would say that there are like, let's say best buy, okay. best buy had a really good

quarter. they do. they will have to raise prices somewhat. okay. so will they raise prices enough that therefore they'll have a bad next quarter. but we don't know because we're not sure exactly who eats the thing. maybe best buy eats the thing, and therefore the quarter is not going to be as good. or you just listen to lutnick and trump. you just say, listen, there's pain and stop it. stop trying to figure it out. which makes our job. i mean, we can go. i was on vacation yesterday. i was i was as valuable yesterday as i am today because i don't even i mean, even with my own business, my own businesses, i don't have any idea what to do. yeah. and i don't want to violate any law. >> well, cornell of target did say consumers can start to expect to see price increases in the next few days. >> right. okay. yeah, that i think he has to prove that, but i don't i don't want to panic like everyone else is obviously right now because you take a stock like nvidia was at 115 and then it goes to 111. and then people say, well, what happened

in this interim? well, we have to reconfigure. maybe china gets hurt, but we really don't want we're not trying to sell that stuff in china anyway. we'll pivot that stuff next year. it's a 113. so i think that maybe a cessation of activity for like maybe an hour and a half till we get some clarity is what i would do. >> but when you're running one of these companies, as brian cornell is, you know, you have to do scenario planning. he did explain sort of their approach. it's i think it's worth taking a listen to what he had to. >> tell brian on. >> squawk box when they asked him this question. take a listen. >> we've done a lot of scenario planning, and we've tried to understand what are the different options that we might have to face. we'll go back and understand the implications of canada and mexico. we've been looking at that. we know for certain categories like fruits and vegetables, where during this winter season, we depend on mexico for a significant amount of supply. now, those are categories where we'll try to protect pricing, but the consumer will likely see price increases over the next couple of days. >> so there you have. it increases as soon as the next

few days. by the way, when it comes to target's performance in terms of the company, as you know, anybody who's watched it, who's been paying attention, it's been a lot of back and forth, good quarter, bad quarter, good quarter, bad quarter. this does appear to be in the good quarter category. >> quarter, fourth quarter. comps and margins. when i spoke to him this week, the one thing i would point out valentine's day was good, but february was not so good. january is not so good because of weather. so there are issues related to. >> the point you made earlier on best buy. the good performance is being outweighed by the fear of tariffs. and you heard cornell encapsulate that not just fear but what they're doing, karl, in terms of positioning their business and what it's going to mean for american. >> consumers. you were right about most of their comps, but appliances down 11, that was worse than expected. >> this has been very weak. some of the appliances are made in america, so there won't be price increases. appliances is heavily related to housing, which is not good. but look let's just take a look at best buy. let me play devil's advocate. what's going on? you now have a 5% yield. the

company did incredibly well. not exactly sure who has to eat the tariff. maybe the manufacturer should eat the tariff. maybe best buy can push back. you have very steady company because they raised the dividend and 1%. well, but they have a history of raising it. i mean, a lot of people feel that they are that it's perennially going to be cut. that's why i mean, 1% is nothing other than to say, listen, we're not cutting it right. but it's a viable company. it sells it with 5% yield that isn't really sure. maybe raise prices, you know, 11 times earnings. it's not a disaster. it's just that there's a complete vacuum in what you want to do with that stuff. >> that's this is now the biggest drop. yeah. intraday. >> so i own the stocks 2020. the stock for my charitable trust. >> that's that's ugly. >> there was no reason for me to sell it. i sold it at 90. and i felt like you needed it because i think she's doing so well. >> had a great call saying it would go to 90. and it did. >> and i took it went to 90, i sold. i wasn't going to say, oh, and now it's going to go to 100.

but i wished i had rolled into mcdonald's, which is really doing very, very well. but instead i rolled into david's favorite texas roadhouse and texas roadhouse down three today, but it just went up ten points. i think texas roadhouse is a buy, by the way, the texas roadhouse is not mexican. it's not, by the way. not mexican roadhouse. it's not monterey roadhouse, it's texas roadhouse. >> texas roadhouse. got it. i understand. >> the $5 margin. >> oh yeah. that's my it's my favorite. but that's going up. by the way, last i heard tequila does come from mexico okay. >> so it's $5.22 margin. >> no no 25% on five would be a buck. >> it's not going to work like. >> that more than a 25. down three. >> because of that guy. >> oh whoa whoa whoa. oh stop for a second. let me redirect here if i can. >> because the bank walgreens. no i'm sorry i'm. >> going to talk about the banks, actually. okay. what do you mean it's not mean? we can talk about walgreen all you want. i said last week that the deal was near, and it was going to be.

>> and i told you that it was. we should get. we should get the sycamore guy on the. >> yes. come on. i haven't been. >> able to reach. >> i haven't been able. >> sweeney's dynamite. >> all right. can i talk about the banks? because the banks are down sharply. >> and yet there's good news. >> there's actually the worst group right now. >> and there's good news banks, but there's no activity. >> well, the concern i think it's more than that. this has got to be a reflection of an expectation. what a diminution in economic activity overall. yes. we can take a look at what rates are doing right now as well. >> president reagan. >> but thank you. but this is a bad day right now for the banks. i mean, you're talking about cities down 5%. >> they may be a buy. >> bank of america down almost 4%. you see it? >> they have to cut. i guess everyone thinks they have to. cut numbers. the numbers are not coming in well, for the quarter, david. they're not. they're not coming in. well. >> well, there hasn't been the m&a that had been hoped for certainly for the first quarter as we are now in the last month of that quarter. ipos, carl, we're still waiting for we got plenty of big names we can mention. but when if they're

actually going to come public who knows. so yeah capital markets activity at least and to a certain extent and then m&a activity. but this is beyond that. this is a more reflection of a general sort of. >> everybody wake up and say, you know what, today's the day that it's going to be hurt. i mean this stuff has been in the works. or is that the constellation where they kept i don't. >> i always think back to i think it was just about 45 days ago when druckenmiller told us here at cnbc that businessmen and women were somewhere between relieved and giddy, and i wonder if he would revise that as of today. >> yeah, well, he is maybe his billionaire itis billionaires. come on, everything's bad. then when something happens, well, it's okay, it'll be bad again at ford motor. by the way, 52 week low, $9. do you think that they really know what to do? i mean, if you listen to what he's saying, listen, close that canadian plant. bring it back. well, i mean, when you go to those plants, these are just

huge, big, big plants. we don't have the people to build all these at once. we're building 100, building $100 billion worth of taiwan semi plants on top of the 65%. it tell me where the workers are. we deported all the haitian workers. we can't make the beef. i mean, where are the workers? where are the workers? we don't have a birth rate that can even do this. we can't import workers because we're anti-immigrant. i don't know where the workers are going to come for all these buildings, plus the additional building that we have from the from the previous administration. we just don't have the work. >> yeah, there's some morgan stanley put net migration next year, maybe half a million, which they argue would bring gdp down to one. by the way, we haven't even mentioned atlanta fed. >> yeah we. >> can't. >> exercise that. it's not fair because it's so horrible. you know you see the atlanta fed. you see that minus two. >> i let carl keep an eye on the atlanta fed okay. >> so what. all right. so then you have to ask what business does very well. and this is i turn to my colleague and partner

and award winning journalist. yes. okay. so we know we learned last week the one thing that i thought was insidious, we learned it from crowdstrike, that north koreans are infiltrating our companies, particularly work from home and pretending to be employees and getting all secrets. so we need identity. we need to have identity controls over people who are there impersonating. >> yes, bad actors are getting credentials. >> okay. >> there you go. >> so how's that doing? let's just. >> check security. let's see. >> oh, look at that. >> yeah. >> when you get logic 1014. there you go. i found an area you can buy. >> what about jim? >> thank you. >> with the tenure down to 413 earlier this morning. and we're now pricing in three full cuts this year. can you take a flier on home builders. anything that's extremely rate. >> sensitive because they're raw costs. just went through the roof. >> lumber's at a31. >> every time we get a home builder, we look at, we look at

orders and we look at gross margins, and gross margins are going to go down very big now. it's somewhat reflected by some of the stocks. but no, you know, you can buy master limited partnerships that have a pretty good yield for four and one half. but i would tell you that tech is the one that has been sold and sold and sold. and yet i don't think most of the tech companies are going to have to sit there and say, you know what, i'm really shaking because of the tariffs. i'm not. i mean, it's the same time, you know, oils and tech oil have been really good. so maybe oil joins tech because we haven't talked about opec plus in another 2.2 million a day when we're when we're doing 13.5 a day. so the president may win on lower oil prices. just saying. >> well that's what drill baby drill conceivably will get you. >> well we're at 13.5. and if they add another 2.2 then oil's going to plummet. it's going to be the tipping point. >> oil where oil is in the 60s right now. right. >> well we got to 67 this morning. it's not far from the 21 low. >> i think you can go to 60 very easily.

>> rig count. rig count has been ticking higher. >> rig counts been fabulous. that baker used number up up up. >> i still have the harold hamm's of the world saying just from a geological standpoint, some of these basins are well tapped. >> they are. but the technology is so fabulous. and, you know, you got a guy like we own a company called kotara, which is just absolutely fantastic. and, and tom and tom is saying, okay, look, discipline is still here. they're still disciplined. but then you have all the private equity guys who are so anxious to sell. and david, you know, that they went in big and they are pumping like mad in order to demonstrate cash flow. >> do you think, jim? i mean, since we've been talking about the production versus capital return calculus for years, would shareholders revolt if they heard that you're going to invest some more rather than return some? >> absolutely. and that's why it's the private equity that's pumping because they don't have to worry. and the public companies may look and see a bargain, but the companies realize that they never made any

money until 2016. they never made any money. and their their cash flow was bad and they had too much debt. so they stopped it. and they're not going to violate that because their shareholders love that they stopped it. but the private equity owners are people who've got to sell, and they have to demonstrate that their basin has a lot more than people think. and so that's what's going to happen. kotara bought a couple that are contiguous. as soon as they're contiguous, you can actually start making money. so contiguous private equity will be bought. but no, there will not be a rush to be able to produce more that they've just chased. it's new. it's new. people are running these companies and they just don't do that. now. i think the more convoluted one is what do you do with nucor? okay. so nucor nucor stock got punished from 170 to 125 because of foreign steel coming into our country via mexico. so now nucor is down five today. why. because people feel the economy is going to slow. so you won't need their steel. >> yeah. meanwhile they should be protected from many of those things. and there's an

expectation the steel industry is going to do. >> better by the utilities. >> you still got letter x out there as well. i mean there's still there's still plenty of talking going on between the company and nippon steel obviously its would be acquirer still and the administration just very hard to know where this thing ends up anybody's guess. like so many other things anybody's i think worth mentioning tesla shares, which are down obviously over 32% for the year, 32.6%. it may be sales in china or the lack thereof that are pressuring the stock right now. reports that they sold 30,688 china made electric vehicles in february. that was almost a 49% decrease from the year earlier. that was reported by reuters. >> year on year, it's down 2029, the 49 is month on month, but still. >> yeah, month on month. >> still a huge decline. >> now. there was, i believe guys, a line change in the model

y in china where. >> there was there was a change. >> it for. >> a new. >> right, a new. version of the vehicle that may have taken production out. so that may have in europe, for obvious reasons, limited the availability of autos, automobiles, that they could even sell into that market, the model y being the key seller to begin with. >> and you know, that just says, you know, i want to go buy humana and unitedhealth, right? i want to go buy. i mean, you may you know, they should be what people buy. go buy a hospital corporation hca. these could do very well. i mean what's what do they have to do with the price of eggs? what do they have to do with something? >> you know, where we import the most eggs from? canada? >> canada? >> yeah. >> oh, canada. >> i'm not going to help. >> lorne michaels is from canada. >> yes he is. >> we're going to need a bigger boat. yeah. >> well, anyway, i'm just saying i'm looking at the panoply and i'm saying, okay, i want, you know, go buy unitedhealth. the numbers have already come down. it's in pretty good shape.

centene's got medicaid problems, but you'll probably buy it. you want to buy stuff that is so uniquely american that you don't want to think about any of this stuff. you want to buy pennsylvania power and light. >> pennsylvania power and light. there it is. >> you know, people who raised my rates so horribly that i just wanted to point that out. >> okay, i'm glad you did. >> speaking of rates, watch bonds today. not a lot of data. we will get williams at two 2010 year did creep down to 413. we got that three handle on the two year 390 today. that's a five month low. wow 389. nine by the way s&p 200 day now 80 points below in the nasdaq is down 10% from the closing high. stay with us. >> for the bond report is

brought to you by pimco, a global leader in active fixed income. >> i'm alison lundberg, strategist at americaneagle.com. wagner came to us with a goal to make their website user experience seamless and simplify access to product information for customers. we build enterprise websites like this all the time through a fully integrated digital transformation. wagner techcom is now a fast, mobile optimized website with an engaging user experience for complete website and digital solutions. go to americaneagle.com. >> introducing the. >> rex fang. >> and innovation equity premium income etf. pepe. pepe invests in leading big tech stocks while balancing growth and income. combining tech growth with premium income, pepe offers a unique investment opportunity. for more information, including the fund's standardized performance, sec. 30 day yield and current distribution rate, visit rex shares.

>> question why would the former head of business development at merck become vice chairman of a company currently valued at $30 million? like him, you should meet in webex symbol onlv on the nasdaq and webex is a clinical stage company using a novel cell immunotherapy platform to treat sepsis and osteoarthritis and other inflammatory diseases. both billion dollar market opportunities that could revolutionize the way we treat these diseases and webex stock symbol inlb. >> i'm patty and this is my. timber tech story. >> and our previous home we had had wood. >> and i never. >> liked it. it was such upkeep. i wanted a sustainable option. and that made timber tech the obvious choice for me. i want others to know when they come over. it's the first thing i tell them when they go. i love your duck. what kind of. what is that? and then i go, and it's not wood. >> i love. >> the indoor outdoor living. the ducks have made it even

better. i wake up every morning and i look at it and i like it. i'm so happy with it. >> what drives your business? numbers. data? sales? sure. but it's your people who define your business. that's why paychex just reinvented the way to find and keep the best people. smart, streamlined hr technology assisted by ai in our team of experts. everything you need to recruit, motivate and support your employees because your people are your business. start reinventing your business at. >> april 8th. >> join the cnbc changemakers summit featuring powerful women transforming and redefining leadership in the world of business. request an invite at cnbc events.com. >> watch bitcoin today. is that bounce over the weekend failed to hold. got to 82 grand or so

this morning. that's down 12 grand from yesterday's high of 95,000. we'll watch that closely coined by the way lowest since election day and block first time below 60 since september. time below 60 since september. we'll get stop trading with ♪♪ only servicenow connects every corner of your business, putting ai to work for people. pfft ... every corner? every corner, nick. ow! so kate in hr ... hey kate. can focus on people, not process. oh actually, i have a question ... keep up, nick. do you have to be sick to take a sick day? patty in it is using ai agents to deal with the small stuff, so she can work on the big stuff. agents like secret agents? secret agents i control. with your mind? you know ... i played a secret agent once. - we know. - oh gosh ... i liked it. over here, ai gives tina the info she needs to get the job done. nick, what did we say about touching? no touching. good. ai helps jim solve customer problems before they're problems. for reals? for reals. for reals. servicenow is the only platform that connects every corner of your business,

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. - [narrator] this is my coffee shop. we just moved into a bigger space, which way back? brought on another employee, and ordered new branded gear for the team. it was so easy. i just chose my products, added our logo, and placed my order. bring your own team together with custom gear. get started today at customink.com. watching my mom struggle with recurring utis held us both back. then she found uqora. uqora offers uti relief and science-backed supplements for proactive urinary health. life's too short to be put on hold by utis. join us at uqora.com field and a defending champion. >> eyeing. >> his next signature moment. what a finish.

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. >> know best grasa. available

now. >> at grasa. >> it's time for jim and stop trading. >> sometimes we forget why we had nafta, usmca. it was because the big foreign companies that i'm talking about here toyota, hyundai, kia, they import with very low tariffs 2.5. so we did this with canada and mexico so that we could compete with germany and with south korea and with japan, which have low tariffs. and they still have low tariffs. and now we're going to get our american companies ford gm, stellantis are going to be hurt. so i mean it's literally logical. why aren't the taxes put on the countries that are really flooding our country with imports vw, toyota. >> there's no argument that we're not. >> yeah, we may get to that. well it's right now it's 2.5. we had nafta then it was redone under the first trump administration, the usmca, which was supposed to take care of all this. but now they're completely revisiting. >> why don't we just why doesn't the president or someone just say, listen. and now we're going to get to the big south korean

companies in japan, which pay 2.5%, instead of just destroying ford motor and gm, which has a huge. look, all i'm saying is, why did we do this? there's a little history involved. and was it to be it was to keep competitive with japan and south korea. now those countries are getting a free ride. we're hobbling our own guys and it doesn't make a lot of sense. >> well, april 2nd is when we may start to see those reciprocal tariffs. >> i wonder whether those countries that have gotten a free ride, like south korea and japan, whether they're going to have to pay. they're the ones the companies you're looking at are the ones that are being hurt. well, forget tesla, i don't know what the hell he's doing. i don't what like we all know. see that outfit that he that he wore? >> i know. >> that was a he was. >> a man. disrespectful man is busy. okay, fine. >> i'm just trying to point out why we did it. it was to be able to be competitive against south korea. yet germany and in japan. and that's why we did it. and now. >> do you think our economy was

exhibiting harm as it was as a result of all this? >> yes. well. >> envy of the world was the was the phrase. >> all right. so i've got the antidote to i've got three companies of the antidote to this flutter online gaming. okay. enbridge canadian company but doesn't matter. they can do most of the stuff in america and royal caribbean. tell me how that hurt. oh, well, yeah. well, the consumer is going to be hurt. no, they're looking for bargains, so they go on a cruise. there you go. >> there you go. >> there's three that you can buy okay. enbridge. you can buy a dividend nvidia is almost up. so that was the right call. >> city maintains a buy just now. we'll watch it closely. you know below 110 today. >> send me the bill i'll pay. >> it when we come back. canada's prime minister responding to the tariffs. we'll get that live after the break. >> at us bank, we know how good it feels to reach your milestones, but we also know what really goes into getting you there. that's why we introduced codebrowse, which

connects you to a real banker in real time to help you do anything from adding a new debit card, learning how to save smarter, even creating spending habits. just grab the one with codebrowse. we're always there for you on your road to here, because there's nothing as powerful as the power of us. >> here you go. >> is there. >> any. >> way to get a better price on this? >> have you checked single care? >> whenever my customers ask how to get a better price on their meds, i tell them about single care. it's a free app accepted at pharmacies nationwide. >> before i pick up. >> my. >> prescription. >> i always check the single care price. >> it's quick, easy, and totally free to use. >> single care can literally beat my insurance copay. >> you just search for your prescription and show your. >> single care coupon at the pharmacy. >> so i just. >> show the coupon and get this price. >> that's right. go to single care.com and start saving today. >> small companies sometimes disrupt the pharmaceutical industry through innovation and speed. introducing biotherapeutics. ticker on the

nyse american. a clinical stage company pioneering a transformative approach to treating cancer, khalid's proprietary platform harnesses the body's own immune system to target and kill cancerous tumors without harming healthy cells. khalid is now in two phase one clinical trials in collaboration with cit do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had planned. if you have $100,000 or

more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. and doing my own reporting. >> to share. >> insights, information and all of. >> the. details that you. >> need to be able to make money weeknights. >> i don't want to be a heretic in a market that's gaga for nvidia, but i think bonds represent safety in a world where the president, not inflation, has become the chief impediment to higher stock prices. too many companies can be tariffed. there's just way too much fear. >> mad money weeknights at six eastern. cnbc. >> good tuesday 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 ugly out there for stocks. we continue to move south since the open down 1.5% on. >> the s&p 500, 1.4% on the. >> dow. which is now. down more than 600 points. and the nasdaq down 1.5% as well. it's a broad based sell off as those tariffs on mexico. >> and. canada go into effect. >> 25% tariffs. >> president trump following through with his threat there. and we are seeing continued selling. >> buying in the bond market though flocking to the safe. >> haven u.s. >> treasuries pricing in lower growth. the ten year yield now 4.13. remember we were as high as 4.8 in january, inching toward that 5% level. we've come all the way back down. so buying bonds with lower yields across the board, more fed cuts get priced in. only two sectors are higher in the market consumer staples and utilities. both are defensive plays. everybody else

is lower and financials are actually taking it the hardest down 3%. consumer discretionary also down almost 3% 30 minutes here into the trading session. here are some individual movers. we're watching fresh results out of retailers target, best buy and more on the move. we're going to get the street's take in just a moment. most of them are lower. we're watching big tech as well. following yesterday's big sell off, bank of america cuts its price target on tesla by more than $100 $380 a share. now, nvidia trading around its lowest levels since last september after losing roughly $300 billion in market cap just yesterday. and then i mentioned the financials. worst performing sector on the s&p this morning. names like citigroup, wells fargo, morgan stanley among the biggest drags. they had been among the biggest winners so far this year. and it is day one of president trump's new tariffs on mexico, canada and china. we're watching the fallout from retail to technology as well as the fed's next move. we're going to talk about all of those implications,

which are clearly front and center this morning for investors. >> meantime, canadian prime minister justin trudeau is set to hold a press conference in about half an hour. we're going to take you live when it happens. but first, let's get to megan costello at the white house with the latest on these tariff moves. morning, megan. >> hey, carl. good morning. so this is by far the most aggressive trade move that we've seen from president trump, even going back to the start of his very first term. it's more than $1 trillion in goods getting caught up here. and that's before you start to count in the retaliation. and there was a lot of hope guys. and i would say even expectation all the way up until midnight last night that we might not get to this point, that we might see another delay. but the trump administration being very firm now, and commerce secretary howard lutnick making the case that none of the three countries have done enough to stop fentanyl deaths and that that's what they want to see the most. take a listen. >> if they can stop the flow of fentanyl and they can prove to the president they can stop the flow of fentanyl, then of course, the president can remove these tariffs. but you've seen it. it has not been a

statistically relevant reduction of deaths in america. it's just black and white. >> so the only way they say now of lifting those tariffs is if we see a statistically significant reduction in deaths from fentanyl, something to watch there. but all three countries meantime making moves to retaliate china putting tariffs of about 10 to 15%, mostly on agricultural products. they say they're also blacklisting about 25 u.s. companies. mexico's president just in the last few minutes, saying that she does plan to talk with president trump this week, likely on thursday, that she'll detail her retaliation on sunday and then canada, as you mentioned, we'll hear from justin trudeau later this hour. we'll bring you those headlines and bring you that live as we have it. but they're also planning their own retaliation, guys, tariffs on about $180 billion worth of u.s. goods. so we'll see if we get more specifics from him as well. >> yeah, megan, i mean, first of all, obviously, i mean, given how little fentanyl it takes to obviously impact a lot of people, it's hard to imagine they're going to be able to really stem you hope you

certainly hope stem the tide of what's happening here simply from from interdicting at the border. my question to you, though, is not about that. it's about comments about april 2nd where he said, we're going to reset trade policy on april 2nd. i guess many are just trying to determine, well, what does that then mean? this is only opioid or fentanyl related. so what is happening on april 2nd, and will it also impact china, mexico and canada along with so many of our other trading partners? >> the white house keeps referring to this date of april 2nd as the big one. it's interesting that they see that as sort of the point that they're getting to when they're also doing so much in the meantime. but these are all on separate tracks. today's is the fentanyl related tariffs on mexico, canada and china on march 12th, by the way, next week they've also been threatening steel and aluminum tariffs against all countries, including those that trump negotiated exemptions with in his first term. so something to watch there as well. and then on april 2nd we get the reciprocal tariffs. they've described these as the ones where they're going

to go country by country on an individual basis and decide what tariff rate to put against each country on its own. the eu is likely to be at the top of that list because they've laid out a number of frictions with the eu that they don't like. things like the vat, for example, is that that at the top of that list. so we may see them go country by country, we may see them all get rolled out on april 2nd. but it is sort of a herculean task that they're trying to figure out. and that's what happens next guys okay. >> so just to make sure so it's conceivable that tariffs on china will go up even more than the 20% currently in place and or even canada and mexico after april 2nd. >> absolutely. they are all included here. we could see exemptions, but we also might not. it could just escalate from here. >> yeah. i mean it's been going on about this canadian sales tax. so if they see that as something to have a reciprocal tariff about it goes even higher. thank you. megan, can you continue to watch that. because i think there are some big questions that investors have. the main one is how long do these last. right. and what exactly do we need to see from

canada and mexico to stem these? what happens to the usmca, the free trade agreement that was negotiated by the trump administration? i think another key question right now for investors is where is that trump put does it really exist? if it exists, what is the pain threshold? is he going to look to the market for a sign that they have to cool it with the tariffs? because at this point we're really starting to price in weaker growth. yes, they wanted lower interest rates, but i'm not sure they wanted lower interest rates to come in line with a plummeting stock market and total recalibration of where us growth is and what is ultimately the end game. those are some of the questions certainly i have and investors have now, as far as the economic damage, we've been talking a lot about the us and the us auto sector and how we're going to pay more for avocados and strawberries from mexico. fine. the impact on canada and mexico's economy is what i keep coming back to, because they will feel this very brutally and

could put both of their economies into recession. here's the chart of the day. this comes from bank of america. it's the percentage there of their own economies that is, trade with the united states. for canada, more than 30% of its gdp is tied to trade with the united states, and it sends 75% of its exports to the united states. for mexico, which is the orange line, it's an even bigger part of their economy, more than 40% of their gdp is with the united states trade. they send more than 80% of their exports to the united states. they are very much incentivized to make a deal with president trump, if that exists. well, and he knows that. >> we were we were a trading bloc. i mean, that was nafta. and then it became the usmca. exactly. i mean, that was the whole point. >> that was the whole. >> point to integrate our economies. >> right? and that's why so much production of autos and machinery was put in mexico. that was friend shoring. that

was near-shoring. that was what these companies were supposed to do. it's, by the way, also why a lot of the european automakers are selling off today, the stellantis and mercedes. why? because they have a lot of their supply chains in mexico, shipping parts and autos into the us market. so i think that's an important factor to remember. how much is at stake for these countries, canada and mexico. they might threaten that they're going to do more business with china. sure. and the trade deficit with china and mexico is increasing, which could be sort of an aggravating factor here. but they are heavily reliant on the us, and they have an economy and their political futures at stake. certainly for president sheinbaum, it comes at a time where the us economy is showing some weakness. just i think it's worth pulling up what's happening with treasuries again and with the us dollar. because remember initially it was thought that tariffs were going to raise inflation and so sell bonds and buy the us dollar. right. higher inflation in the us. it means the fed's on hold. so that was the that was the

prevailing wisdom. it's completely flipped on its head now where the dollar is weaker today and treasury yields are lower. why. because growth is a bigger concern than inflation. >> right. and we mentioned obviously the financials in the last hour. you led this hour as well sarah i mean the bank the performance of these stocks right now is notable in the sense of you got citi down almost 8%, bank of america down plus 6%, wells fargo similarly, that's a reflection of a concern, right, about a slowdown in economic activity growth. >> and we don't have higher for longer maybe anymore. we're going to get maybe more interest rate cuts priced in. we're now pricing in three cuts plus. so that's changed that trade flows. they get hit with that too when there's disruption in that. and you know it also at a time where the consumer is looking increasingly fragile. and there are many ways we can see that from consumer confidence to how about target? i mean, i did get to speak with michael fiddelke, the ceo of target and the evp, about what they're seeing in february, and they saw decline. i mean, they can they

characterize the consumer as still budget conscious choiceful with their budget, resourceful with their budget. but the softer start to the year in february where they actually saw sales decline. it's why they gave appropriately cautious guidance, according to fiddelke. not to mention the fact that tariffs are a pretty big deal. 50% of their goods are produced in the us, 50% are abroad. as far as what they saw in q4, the numbers were good. i know you guys talked about this encouraged by the stronger traffic, the 2% traffic growth, strong growth in share performance in apparel. that was notable, i think because apparel has been a pretty weak category and so is consumer discretionary apparel. and hardlines saw growth still in decline. i think they're going back to their roots as a defining characteristic and something that distinguishes them from walmart. but the bottom line on the consumer guys is those comments and what they're seeing in february, jobs with some of the macro data, which has been a little bit of an when it comes to the consumer, we'll see what

we get for jobs on friday. >> meantime, the s&p is down about a percent right now after the worst day since december. the election day gains have now been lost. nasdaq is officially in correction territory. our next guest does suggest shifting to lower growth, lower risk positions. she likes amazon, nvidia and broadcom. joanne feeney joins us advisors capital management partner and portfolio manager joanne great to see you. you've been making some of these moves over the last couple of months. >> yeah that's right. >> you know obviously. >> there's been plenty of chatter about these coming tariffs. and you know the president of the united states has the power to impose tariffs. >> doesn't need congressional. >> help there. so we've. >> been pretty worried about this. and so in. >> our balanced strategy. >> which is designed to be relatively conservative but still deliver good growth over years, needs needed to have, you know, take a little bit off the table. so we did that over the last couple of months. we reduced some of our technology positions, didn't sell out of those, but just reduced the exposure. they had a great run and we added some safer positions, positions that create income, whether that's an

altria. we also continue to really like some of the health care names like abbvie and johnson and johnson. it might be boring to be in some of these names and more utilities like duke energy. but right now, in this environment of elevated policy risk, not just the tariffs, but also potential government shutdown and global political risks, we think it's wise to just shore up the defensive side of portfolios. >> how long do you envision this shift to safety might last? joanne. >> you know, obviously we're going to be sensitive to the changing political dynamic. we don't know if these tariffs on mexico and china and potentially new ones on europe. we don't know how long they'll last. but if the administration wants to engineer a change in manufacturing, that means they're going to be around for quite a long time. and so it's not clear one wants to run back into industries that are in the middle of that. nevertheless, we still think there's opportunities here for growth, secular growth from ai, from cloud, from cybersecurity. those

things will remain even in a tough environment like the one we're now facing. >> i see we're we're showing some of your moves into broadcom and nvidia. i mean we are still even aside from the tariff discussion dealing with the deep sea crinkle. the maybe lack of ratification on whether these capex dollars are going to at least be high margin businesses. explain why that trade makes sense. >> yeah we've owned we've owned broadcom for ten years and nvidia for quite a while. you know. so we don't. >> at this point raise. >> our positions in those. but we are pretty confident that that growth run is going to last for a long time. even with something like deep sea, that technology was known around the industry before deep sea hit the public awareness, and it doesn't really change the narrative. it just means that if you have better and better chips, you're going to be able to do even more. and that's why we have not seen capex cuts from the hyperscalers. we see them doubling down. we see blackwell, the chip from invidia still in a

shortage position and just ramping and a new one coming at the end of the year. so we do see that as a really strong secular growth opportunity. in fact, if you look at nvidia shares here, they're cheap relative to their growth opportunity and relative to the market. so if you're not an owner of nvidia and you have a sufficiently long term perspective, that would be one to take a serious look at at this point. >> yeah, you're not the only one today. citi as well reiterates thereby on nvidia as we bounce off 109 and change. important day joanne appreciate the clarity and insight. good to see you joanne feeney. >> you bet. take care. as we head to break. here's our roadmap for the rest of the hour. the read on retail target and best buy both out with earnings both seeing sharp declines. we're going to break down the numbers. >> plus tech's tumble. the mag seven continues to underperform nvidia which we're just talking about. that's the lowest level those shares have seen since september. we'll discuss of course if there is more pain ahead. >> and the canadian prime minister trudeau big press conference this hour. we'll take you there live when it happens.

a squawk on the street continues a squawk on the street continues after this. -what've you got there, larry? -time machine. you gonna go back and see how the pyramids were built or something? nope. ellen and i want to go on vacation, so i'm going to go back to last week and buy a winning lottery ticket. -can i come? -only room for one. how am i getting home? sittin' on my lap like last time, ronald. fine, but i'm bringing this. [ whirring ] alright. or...you could try one of these savings options. the right money moves aren't as far-fetched as you think. there it is. see? told you it was going to all work out. thanks, future me. with so many options, she's bound to find exactly what she wants. >> this one's. >> this one's. >> just right. your shipping manager left to "find themself." leaving you lost. you need to hire.

i need indeed. indeed you do. sponsored jobs on indeed are two and a half times faster to first hire. visit indeed.com/hire the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives.

it brings people together in meaningful ways. >> market is deteriorating as we speak. the s&p is now down almost 2%. almost every sector is lower except for consumer staples right now. the declines in financials. wow. down 3.6% as a group. but some heavy selling

in some of these names, which were thought to be big beneficiaries of the trump trad, deregulation, pro-growth policies, all that. not today. and consumer discretionary is right down there with it down 3.4%. tech is getting slammed as well. the nasdaq is down 2% right now for the week. and it's only tuesday. we're down 4.6% on the week. i mean it has been a challenging few weeks here. and those losses are really starting to pile up. buying of bonds with yields sharply lower. retail's in focus as well. investors are working through the tariff impacts and also new numbers this morning out of target and best buy. consumer discretionary one of just two sectors now in the red on the year here to break it all down. michael baker d.a. davidson analyst it's good to have you, michael. clearly tariffs are front and center, and that's got to be part of the selling today. but what about what you gleaned on the consumer from both best buy and target. >> yeah i'm. >> here at the target.

>> meeting today. >> and what. >> we're hearing. today is. >> very similar. >> to what we. heard from a couple of retailers last week, which is really strong. fourth quarter january okay. but february has seen a big. >> step down. >> and that's a function in some ways of. waning investor. >> or sorry. >> consumer confidence because of tariffs. also the weather wasn't great in february isn't a big month anyway. there's not a lot of. >> call to action. >> but but really that's what we're seeing here is a combination of a weaker february and the. >> tariff uncertainty. >> i guess one thing that target and best buy share in common is consumer discretionary exposure and exposure to categories that have been weak, like home, for instance. i mean, did did tell me that they were seeing better results in apparel, which had also been weak, and in hardlines, which is also part of consumer discretionary. but are these two unique in that sense compared to the rest of retail for what the consumer is going through right now? >> well, it's the idea that the. discretionary categories might get hit more in a tariff environment. >> both best buy. >> and target told us they're going to pass pricing through.

but that will probably or could definitely hurt units. and that's the issue. that's what best buy said this morning, is that tariffs could hurt them. >> by. >> at least 1% on the top line because they will raise prices, but they expect at least. >> a bigger offset. >> in terms of units. so the discretionary categories again target and best buy aren't alone in that sense. but they do have higher exposure than let's say walmart to discretionary categories. those are the ones that presumably get hit a. >> little bit more. >> can any of these companies buy more stuff in the us to avoid more tariffs, or is that just not possible in these categories? >> well. >> it's buying. >> in countries. >> other than. >> china, mexico and canada. >> and that's been a. >> trend that's been happening. but to move outside of those countries and to move more in the us, that takes a long time. i think that's generally the idea over time. but that can't be. >> done this. >> quarter or this year. >> do they have any alternative but to raise prices on consumers? and what does that look like in this kind of environment? >> well, the alternatives are to push back on your vendors as best you can. and the bigger you are as a retailer, the bigger

pencil you push, the. >> easier that. >> is to see walmart. we think they'll be successful at that. the second alternative is to eat some of the margin, and i think that's the concern. and that's what you're seeing in the stock today. in the third alternative is to pass through. and that's where you could see a little bit of a hit on units. so that's the other issue particularly for discretionary retailers. again the non-discretionary type retailers the warehouse clubs. as an example, walmart should have an easier time not seeing that unit degradation because they're selling beads rather than ones. >> really quick because you are that the target meeting. i know they're laying out all sorts of long term initiatives and flashing new partnership partnerships. they just did one with authentic brands as champion, for instance. they're going to open new stores, they're going to lean heavily on digital, which performed well in q4. is there anything you're hearing that that makes you a buyer on the weakness today and what we've seen from target lately? >> yeah. well, sure. >> that story is all very positive. and let's remember, 2024 was a difficult year, but they ended up making their full year guidance towards the low end in the comp. but they were

in line with what they said a year ago. they had a really good holiday season. it's been volatile in terms of the quarters, but things are going reasonably well with the exception of february and now the uncertainty of the tariff. but longer term, yeah, we think they're well positioned, particularly with the stock is now i mean it's going to be trading at a pretty significant discount to the long term historical average. >> okay, michael, thank you for jumping on a busy day for us here. michael baker d.a. davidson as we look at the dow now down more than 700 points. carl. >> yeah, not too far from that 200 day about 25 points away. check out some of the big laggards. best buy. that's the worst session for best buy since 22. and then to david's point about the banks, even some travel related names royal caribbean down eight when we come back. how the tariffs might change. the fed's thinking on rates in a minute. >> real time exchange sector sword is sponsored by sector spider etfs.

omaha steaks semiannual sale is back. save 50% site wide on america's best steaks, chicken, burgers and more, all backed by our 100% guarantee. right now, you'll get 12 omaha steaks. >> burgers. >> free with your order. visit omaha steaks.com today. >> my clients. >> deserve someone who understands their world. >> someone who. >> listens, who. has their best financial interests at. >> the center of every decision. >> our business is built. >> around being. >> responsive to our client's ever changing needs. >> as an advisor. >> as there are a custody services. >> provider. >> i see. >> my client's success. >> as my. >> own because. >> when they grow. >> we grow. >> with them. for over 25 years, we've been committed to arias. >> and that's why i chose tradepmr. >> for 32 years, red chip has

been discovering tomorrow's blue chips today, with early research on starbucks, celsius, daktronics, winnebago and more. now we bring you red chat, an innovative ai solution which gives you answers in seconds on over 2000 small cap stocks listed on the new york stock exchange and the nasdaq. visit redshift today and use chat your ai small cap assistant red chat. >> thinking about retirement? would you like to have retirement income that you can count on for the rest of your life? how about up to 33% more income? call this number to get this free book annuity do's and don'ts for baby boomers. this book is filled with valuable information uncovering little known secrets to help you maximize your income in retirement. and it's free retirement income you can count on starts by calling for this free book. as a bonus, we'll also rush this annuity. >> rate. >> report. also, absolutely free

annuity national researched numerous products and summarize the rates and benefits of annuities from foremost insurance companies like nassau life and annuity call for both these free books. annuity national retirement income you can count on for the rest of your life. call now for your free books. call 800 211 4470. that's 800 211 4470 800 211 4470. scan the code. shop the tank tonight 9:00 eastern cnbc experience the power of cnbc pro. track your portfolio from every angle on one optimized platform. become a smarter investor with the power of cnbc pro, go to cnbc.com. now. >> markets have been reacting to tariffs on mexico, canada and china. a key question for investors how will the fed

react. our steve liesman takes a closer look at that this morning. morning, steve. >> hey good morning karl. fed fund futures on the move responding to terrorists by president trump. by pricing in rate cuts from the fed much more aggressively. markets now pricing in three cuts from the fed this year with a greater than 50% probability of a first cut in june. a second one in july and now a third one in september. but will the fed come to the rescue? and how quickly fed officials have said they're going to respond to weakness in growth and employment, but they can only do so if inflation is headed to the 2% target and inflation expectations remain under control. but five year inflation expectations measured by the university of michigan will. they shot up recently to 3.5% on those broad tariff concerns among the american public? that's the highest level in 31 years. market based expectations are lower, but remain elevated. krishna guha evercore isi says the road to a june cut runs through this moderate tariffs. that would mean backing off the current levels against mexico and canada, weaker job growth and

declining inflation, along with contained inflation expectations. market seems to be betting on that scenario, but the fed could find it tough to cut. while tariff induced price hikes are working their way through the inflation indices. and until it's clear to policymakers, they face one time price hikes not a rekindling of inflation guys. >> but the problem, steve, is that that inflation, as you know, is not really demand led inflation that the fed fights. so it feels to me that it's easier for them to cut if we really start to see growth slowdown and particularly that have an impact in the labor market. >> yeah that's right sarah. the trouble is that you can come to one conclusion if you sort of close one eye and look only at one part of it. the trouble for the fed, i think right now is the context. you know, they go back to 2018 and you see that the tariffs didn't cause a broad increase in the in the price indices. well inflation was below target then. we'd been

through a very long stretch of below target inflation. right now if you listen to some fed officials they point out hey we've been through just a pretty good round of inflation. we're still above target. and so that context is going to give them, i think, a little more pause, suggesting to me the market might be a little more aggressive. you're right. they can respond to weakness lower job growth. but they're going to have to wait till at least they're sure. i think these price hikes are coming from the tariffs just are one time and not rekindling of an inflation psychology among the public. >> yeah we're back to that. that argument about whether or not covid changed our reaction function to price hikes steve. a lot more from you later on today. steve liesman. let's get a news update as well this morning with silvana. hi, silvana. >> hey, carl. good morning. >> to you. >> well, ukraine. says that it can. >> maintain the. >> front line in its war with russia. despite president trump's decision to pause. >> military aid. >> to kyiv. >> the move came. >> after last week's public

clash. >> between president donald trump and. ukrainian president volodymyr. >> zelensky in the. oval office. >> the vatican said. >> this. >> morning pope francis. >> no longer needs to use mechanical ventilation to help him breathe. >> the update comes after he experienced two. >> respiratory incidents on monday as he fights double pneumonia in a hospital. the vatican says doctors remain guarded about the 88 year old's prognosis, meaning he is not out of danger yet. and spacex set a new flight window to carry out the eighth test flight of its massive starship rocket, which the company hopes to one day send to mars. the window will open on wednesday at 530 central after last night's launch was scrubbed last minute. now, spacex ceo elon musk said there were too many question marks about the flight. sarah. >> okay, savannah. thank you. checking in on markets. we're about an hour into trading. it's been ugly. we're just off the lows. but the s&p is still down 1.6% and most sectors are lower

right now. the nasdaq is down 1.7%. heavy selling not just in the big technology names. the big banks are getting slammed today. consumer discretionary names also weaker. just adding to the losses for the week so far and the past few weeks. we are just moments away from a big press conference with canadian prime minister justin trudeau on the back of president trump's tariffs. we're going to take you there live when that happens. we'll be right back. >> meet omnia lux contour, an led light therapy mask clinically proven to reduce fine lines and wrinkles. find out how you can improve your skin at omni lux. com. >> luxury meets performance. peter malone our gut issues

holding you back seeds oh one is a probiotic and prebiotic formulated to reduce. bloating after two weeks. which means you can move how you want, eat how you want, and live how you want. without the. >> distraction of bloating. >> feel lighter and less weighed down. >> visit si.com. >> to start. dso one today. the fbi calls it house stealing, the latest scam where a cyber thief transfers the title of your home out of your name and steals your hard earned equity. >> it's roughly 60. >> to 90 days for. >> that person to even figure out that they're the victim of this crime. you start getting foreclosure notices and you realize you've got four mortgages on your house that you didn't even know existed. >> find out if you're already a victim and start your million dollar triple lock protection today at home. title lock. dot

com. >> zip this for mary. >> thank you. >> zip doordash didn't zip. >> just have an. >> earnings call. i wonder if their take rate finally improved. >> did management provide an outlook. >> for future performance? >> i have a question about a stock. >> appeared. >> just swipe down and ask.ts. o

better odor control everywhere. >> welcome back to squawk on the street, one well known name facing tariff headwinds is apple stock actually up today? steve kovach joins us now to break down the impact that it could have these tariffs on its business. steve. >> yeah david it got hit yesterday with that 10% double whammy on china. so now that brings it total to 20% of tariffs on imports from china. so tim cook the ceo of apple he's been pushing really hard for tariff relief. late last month he met with president

trump in the oval office. and a few days after that meeting last monday announced that $500 billion us investment that also includes some manufacturing down in houston for artificial intelligence servers that were previously being made overseas. now, a lot of analysts picked through that announcement and said most of that spending was likely in the cards already. but still, that wasn't the only offer apple has made to trump. as for this tariff relief, before that, there was that $1 million personal donation that cook made for the inauguration fund. and of course, he attended the inauguration with all those other big tech executives. cook, by the way, he kind of wrote the playbook for getting tariff relief from trump back in the first administration. and analysts say, though this tariff is in effect right now, and that first round of tariffs, just the 10% would be a low to single digit percentage hit to earnings. we'll have to see what they say for this round. no analyst notes on that yet. they're probably still doing the math on that. the big question though guys is price increases. apple hasn't really mentioned anything about increasing prices

for its products, but we did get the iphone 16 e. that new model of the iphone announced a couple of weeks ago. that is $170 more than the previous model. and just this morning there is a new ipad air going the other way, starting at 5.99, which is the same price as last year's version. we're also expecting another announcement, a product announcement this week, the new macbook air. so we'll see what the pricing looks like there. but it's really going to come down to the iphones and things like that. guys, i will also note microsoft is feeling the pain here, as are so many other pc makers. carl, i'll send it back over to you. >> all right. steve. talking a bit steve kovach. let's stick with that tech trade. despite these recent declines, our next guest says that nvidia, tesla and palantir have showed the most net buying of active stocks on his platform favors some low volatility. high dividend names here. steve sosnik with us, interactive brokers chief strategist, joins us here at post nine. it's a good day to have you. good to see. thanks for coming in. talk about why

those names in particular are moving. >> you know, we're still having this little battle between you know, what i'm going to call fomo momo and momo. you know, basically, there's still this fear of missing out. we see here just this bounce, like 40 points since i've just been walking from there to here. and so people really don't want to miss what. >> they. >> see as a buying opportunity. because for the better part of the last few years, every dip has been a buying opportunity. this one not so much. and i think, you know, a lot of what we see are active traders sort of wedded to that strategy, hoping this will pan out. and, you know, and those moments where it does pan out, we see, you know, people jumping right back in. >> right. so this notion of a retail buyer strike combined with a hedge fund momentum unwind. is that a fair framing at the moment? >> to some extent i would say our customers really they really range the gamut from small investors to large investors and very heavily, you know, the numbers i'm seeing are very heavily balanced toward weighted, i should say, toward active traders, because if i'm looking at active activity numbers, it's going to be the most active customers. those

what are my friends at the ceo calls it pro tail because, you know, we're sort of they're sort of retail but but a bit more. >> so what are they doing with tech? the heavily owned mag seven stocks. >> as of the last time i checked the numbers this morning, they were still buying nvidia. nvidia remains the most actively traded and the most actively bought stock on our platform. tesla being number two there. these stocks brought them to the dance and they're not abandoning them. >> was was friday a good example of that too. what do you think happened there friday or was it about month end. something else. >> i think friday was month end. i think that close was was for, for lack of a better word, phony as can be. but it shows you how the market, as soon as there's a, as soon as there's a buyable dip with any little bit of momentum, people jump on it. and it's probably no coincidence that it was month end, certainly the month end bargain hunting, but also no coincidence that it was a friday where you had weekly option expiration and of course, the daily option. >> what about the day part? first two hours of trading versus last two hours. are you seeing evolution in that kind of

behavior? >> you know, i don't have clarity into what our customers are doing in that. but what i see in terms of the market behavior. yes. i mean, i think i this was the rare morning where we didn't wake up and see futures just grinding higher. you know, wake up and see them up five points and then see them up like 20 or 25 points by the time we get in. or, you know, or sort of the market opens. and so this there's been this grind higher because people are used to it. we didn't see that today because the news was overwhelming. we also sort of see that, you know, the grind into the close. and that more or less depends on the character of the move. but, you know, we do still, you know, even yesterday we saw a big bounce, relatively large bounce into the close because it was the first of the month. and so presumably money flowed in. >> i know you've got some thoughts on the vix which just hit 25 and whether or not that is a fair measure of fear at the moment or not. >> well, my comment about that is vix is not a fear gauge, but it plays one on tv. it's not specifically constructed to reflect fear, but of course it does reflect people's perceptions of volatility over the coming 30 days. that's what

it's constructed to provide. and so yes, when things are when things are moving around, a lot people then project that they that they will continue. so but here when we see vix around 25 roughly speaking that's about a 1%, 1.5% daily volatility for the coming 30 days. and when we think about the movements we've seen over the past couple of days, when we think about the potential for a government shutdown, frankly, in less than a week and a half, is it wrong to think that we could get 1%, 1.5% daily moves on spacex? no. so i think it's not it is reflecting more caution, not reflecting outright fear. >> about cash levels. >> you know, i don't have a ton of clarity into what our customer cash levels are. sarah. i wish i could tell. >> you, but. >> so then how do you describe sentiment overall? i know you talked about buying the dip. so is it overall optimistic? >> it still remains. again, when i checked sort of our top 25 list today, it was it was not just the names that i mentioned. people were buying triple cuz people were buying stocks. l the triple the triple socks. you

know, there's still this love of leverage. and i think until you see that shaken out, you know, where people where people are maximizing risk, at least active customers. active traders are maximizing risk. you're going to get this kind of grind back and forth. you haven't seen the full shakeout, right? >> kind of like the leveraged homebuilder like nail right. that's that's been a tough lesson steve. thanks. good to see you. thank you very much. >> worst performing sectors right now in the market. look at financials down 3.6%. they're getting hit the hardest. but consumer discretionary not far behind. remember tesla is in there amazon is in there too. best buy is in there. and that one's down 14%. the cruise lines the retailers it's pretty broad based industrials energy communications services. it's a mixture of tech and cyclicals. those that are tied to the economy. the only one in the consumer space getting relief right now is d.r. horton, the homebuilder potentially reacting here to those lower interest rates because we are seeing the seeing the ten year yield drop like a stone. so on silver

lining should be some relief in those mortgage rates. former commerce secretary carlos gutierrez saying escalation is likely when it comes to tariffs. he's going to join us with his take and his reaction to what we could see next. when we come right back. >> zip this. >> for mary. >> didn't zip just have. >> an earnings call. >> i wonder if their take rate finally improved. >> i have a question about a stock. just swipe down and ask alpha i for investors only at public.com. >> with them two two and a half weeks. i noticed immediately a difference in my wellness and my gut, especially for perimenopausal and menopausal women who are trying to figure out what supplement to take. this is a key part of it. for me. >> music is the ultimate uniter. it belongs to all of us, and now you can own a share of it for yourself. my name is j.w. roth, founder and ceo here at venu. i've always been a music fan. first and foremost, i was the

kid camping out for stones tickets and singing along in the pouring rain. it's those moments that inspired me to build the first live music company that's fan founded and fan owned, a company devoted to creating memories that will last a lifetime. as one of the fastest growing live entertainment companies in the world, we're disrupting the music industry and the hospitality landscape by offering one of a kind destinations where music, dining and premium converge venue is now traded on the new york stock exchange, so you can join the revolution by owning a share of our rapidly expanding portfolio of the most state of the art venues on earth. own your passion for great entertainment, join the music revolution and own the stock that rocks. >> some people. >> took deep. >> seek to mean actually that you need less compute. >> from. >> a. >> demand perspective, deep seek was fantastic. it opened. 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, then 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 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. >> stocks are. >> tanking again. >> so what can investors do to safeguard their investments as tariffs rock the markets? one strategist. will look past all of the red arrows and give us his protection. please tune in to our market navigator segment today on power lunch at 2 p.m. eastern. >> trading at schwab is now powered by ameritrade. unlocking the power of thinkorswim, the award winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization and track market trends with up to the minute news and insights. trade

brilliantly with schwab. >> your business needs to hire someone now. so in addition to managing your business, you have to go through hundreds of resumes and hope for the best. or you can go and get the best. introducing paychex recruiting copilot. it uses ai to help find potential candidates from millions of profiles, and whether they're looking for a job or not. then it helps you get in touch and get them hired five times faster than job postings. get your own paychex recruiting copilot now at. >> this is not a trade war. we are going to reset trade policy on april 2nd. you've got china's got huge tariffs on us. huge tariffs on everything with us

and canada. you just talked about. why do we produce cars in canada. they've had an invitation canada and mexico had an invitation to trade with the amazing economy of the united states of america. and they have abused that invitation. and the president is going to reset that. but that's april 2nd. that's not today. today's opioids i know people worry about short term, but we are going to bring jobs. you are never going to see the amount of production come back to america than donald trump is going to bring back to america. >> all right. that was the commerce secretary, howard lutnick earlier interview on squawk box, of course, discussing the latest tariffs, which, as he said, are they're really about opioids and preventing fentanyl from getting to our country. joining us with his take is former commerce secretary carlos gutierrez. also, of course, chairman of kellogg and ceo of that company some time ago and a cnbc contributor. carlos, always good to have you. i think, you know, we're trying to understand this

25% against canada and mexico, 20% against china is to try to get them to do more to interdict the flow of fentanyl into this country. april 2nd is when we may start to see tariffs that sort of are designed to be commensurate with what we have to pay or what our manufacturers have to pay to send stuff over to them. what do you make of it all? >> well. >> you. >> know, it's important to, to focus on. >> fentanyl because. >> secretary linton was. >> very, very clear. he wanted. >> to make. >> a point about that. >> the thing. about fentanyl. is that it's very low volume and high value. so, you know, us consumption. >> for a. >> year can be brought over in a pretty medium sized truck. so this is not going to be solved quickly. these are a lot of laboratories kitchens homes small apartments. so i would

expect in the coming week an announcement about a deal between mexico and the us on fentanyl cooperation. that would include intelligence cooperation, intelligence gathering, potentially us drones. and that's the kind of thing that would be a victory. and the president can announce that will enable him to take the tariffs away. it's important to remember that in eight days, 25% tariffs go on steel and aluminum. that's the plan. so this problem with mexico and canada should be solved because those are the two countries that will get hit the hardest with steel and aluminum. >> yeah. you know and secretary lutnick did indicate that it would actually be based on reducing the number of deaths in our country from fentanyl, which, you know, i don't know what the target would be. obviously, you'd like it to be

zero. you seem more optimistic. why are you optimistic, conceivably, given again, that the mexicans have committed, i think, to 10,000 troops on the border and certain things already designed to increase interdiction of fentanyl into the country? >> well, you know, deaths have actually declined. so there is there is an announcement to be made about deaths are declining. i don't think that these tariffs will be left on until deaths decline from here on. there are numbers that we can point to. but again this is it's a massive challenge. so i think the administration will point to an agreement. cooperation results. the fact that deaths are already declining. but i don't think the idea is to wait until, you know, deaths decline over the next 12 months. it's more about the agreement and something that can be announced relatively soon. unless steel and aluminum

tariffs will be delayed. so, you know, there's a bit of a bind here in terms of time. >> do you see any geopolitical fallout from what's happening here with trade? >> well, it's interesting as we get into mexico and canada, one of the big ideas, i think that it was actually brought up by secretary besson to apply tariffs, that mexico apply tariffs on china, the same tariffs as the us, so that there's recognition that that north america is a trading area. it is a supply chain area. i think that strategically that would be a great move forward, because then it's not just about bringing mexican and canadian production back to the us, which is, again, a bit of an unrealistic target. and more about recognition that it is a north american supply chain that would create a geopolitical

situation with china. but you know that that's going to happen anyway. i think china us will have to sit down sometime after the, you know, the chinese congress, which is meeting right now. but with with mexico, that would be a strategic solution. the focus on cars. and, you know, we heard it this morning and the president said it yesterday. this is all about cars and bringing back cars to the us. i hope that the targets are realistic. the us market is call it 16 million cars. us production is around 10 million. so we're trying to fill a 6 million gap. mexican exports to the us are about 3.5 million. so even if you wiped out all of mexico's exports and you brought that production to the us, you would still have a problem. so i think this will be about announcements, about news, about momentum and not so much about, you know, we won't stop until we

have all manufacturing in the us. >> yeah. carlos, real quickly, what about april 2nd. reciprocal tariffs. do you expect that. you know there's going to be a lot of them. >> well this will be country by country. and this is where i think europe will be brought in. potentially korea, japan asean where you know we have a significant trade deficit. so it will be a country by country negotiation. and this will be trade. this will be all about tariffs and regulations and non-tariff barriers. it will you know, it will be longer because it's country by country. but it won't be as as broad an impact and scope. >> carlos always appreciate it. a lot more conversations ahead i'm sure. thank you. thank you. okay. >> meantime, getting some breaking news on blackrock today. for that, we'll turn to leslie picker. hey, leslie. >> hey, carl. >> yeah. this is some. fascinating news. crossing just moments ago that blackrock is

agreeing to purchase panama canal ports and over 40 additional ports. this is from c ck hutchison holdings. this is a an asian group that owned these ports that blackrock and gip general infrastructure partners which is the infrastructure group that they purchased last year. and terminal investment limited as a consortium. they do plan to purchase this this, the panama ports, which are controlled by hutchison is what trump, president trump has claimed were controlled by the chinese. he said he wanted to take back the panama canal from the chinese. well, this deal is a fascinating turn of events here. this would be blackrock's largest infrastructure deal ever. the deal portfolio is valued at $23 billion. the actual constructs of the deals are a little bit complicated. so bear with me here. but hutchinson's 90% interest in panama ports company, which owns and operates the ports of balboa and cristobal in panama, is what the consortium is purchasing. in

addition to its 80% effective in controlling interest in subsidiary and associated companies, which are about 43 additional ports as part of this deal as well. so the aggregate enterprise value of this deal is about $22.8 billion. and then just kind of reading through the release here, you see that c.k. hutchinson, co managing director, says that the transaction is a result of a rapid, discreet but competitive process in which numerous bids and expressions of interest were received. and then they say they go on to say the transaction is purely commercial in nature. i'm quoting here, and wholly unrelated to recent political news reports concerning the panama ports. they, of course, remain subject to confirmatory due diligence, settlement and definitive documentations and normal and usual completion procedures. but i am told by a person familiar with the matter that blackrock has been in conversations with the administration and congress on

the constructs of this deal. but again, guys, blackrock purchasing the panama canal ports in over 40 additional ports here for a transaction value of $23 billion. >> yeah, leslie the panama element is definitely interesting. two things though. how does it compare to some of their other recent deals with gip with infrastructure? as i recall, larry fink's last comments did not suggest they were going to be that aggressive in acquisitions. >> yeah. so this is a gip was just recently acquired by blackrock. it looks like they're going about this and kind of a consortium form. this is the largest deal the firm has ever done $23 billion i would bet that it's the largest firm gip has also ever done. this is a very very sizable infrastructure deal. obviously infrastructure has been a huge area in the alternative space, probably for about the last decade or so. the challenge, of course, with infrastructure is just the supply of assets and the ability to kind of construct these large

deals in the tens of billions of dollars. >> yeah, i mean, it's interesting because of the ownership here. so this is cj hutchinson. this is the big hong kong firm run by li ka shing. right. i mean, it's when president trump says that china has taken over the panama canal. this is what he's pointing to that they have the ports there. so i would imagine that actually blackrock is in the best strategic interest in the us for the us to have ownership there. >> and that would be kind of if you read between the lines of the press release where they say it was a competitive process, but then according to the people i've spoken with, they have been in touch with the administration. now, i kind of i was asking sources and i'm going to do some more calls after after i get off tv here. you know, kind of how this was initiated, the backstory, how this how this deal came together, as you will. was it something where, you know, the administration reached out to blackrock, blackrock, blackrock reached out to the administration with interest. how exactly it unfolded? because

i think that is perhaps about as interesting as the deal itself as it pertains to this geopolitical environment. but it sounds like, at least according to the press release and according to those quoted in it, that it was a competitive process, kind of a standard. you know, what you would expect to see in this type of deal, right? >> gfp obviously. >> has funds. they're a large sort of private equity infrastructure group, is what we should point out, bought by blackrock. and they're obviously the ones doing the purchasing here. leslie, look forward to more reporting on it. thank you. we've got a lot more live market coverage for you of this significant decline in the s&p. some 1.75%. we're right back. >> is this how you're. >> hoping to retire? >> well hope. >> isn't a good. >> retirement strategy. you've worked for. >> a comfortable retirement for years. >> now. >> you need to plan for retirement income. learn ways to avoid. >> common mistakes, like being too conservative or not setting retirement goals. have someone on your.

>> side to keep. you on track. call for a comfortable retirement kit with the help you need to make your retirement a success, including the investor's guide to a comfortable retirement, 13 retirement blunders to avoid and maximize your social security. call one (800) 759-4477. fisher tailors a plan to keep you. >> on track. >> for a retirement you want, and as a. >> fiduciary. >> we do better. >> when our clients do better. >> call now for your comfortable retirement kit. call one (800) 759-4477. call us today. >> you don't have it coming to you unless you plan for it. >> if your. >> if your. >> portfolio is 1 million or you founded your kayak company because you love the ocean, not spreadsheets. you need to hire. i need indeed. indeed you do. when you sponsor a job on indeed, candidates can find it easier. so you can hire easier. visit indeed.com/hire

and with the help of financing from capital, you can meet all of your business goals. because at capital, we finance the legacy builders, the creators, the freedom chasers, the opportunity seekers. at capital, we finance small businesses. >> effective, healthy blood. pressure support takes more than innovation. >> it takes vision. at human, our plant based supplements are scientifically formulated to support the center of your health. and at the center. >> of super beats heart juice, healthy blood pressure support from clinically studied grape seed extract. sustainably sourced. >> from southern france. >> with delicious. >> pomegranate berry. >> flavor. supporting your blood pressure. >> and heart health and all the moments. >> your heart beats for. get a free month supply plus free shipping on all bundles at live. >> human.com. >> shopping online comes with

digital threats, so turn on nordvpn and encrypt your online traffic. get 72% off nordvpn and up to one year for free. find your hustle cnbc make it's new online course. how to start a side hustle three industry experts break down proven paths to success. >> get out there and do it. >> go to cnbc make.com side hustle. special offer ends april 1st. >> good tuesday morning again. welcome to money movers i'm sara eisen with carl quintanilla. live from post nine of the new york stock exchange. stocks continuing to sell off as tariff fears hit sentiment. the major averages now negative since the president took office with the defense of rotation in full swing. what that means is investors have gotten out of the tech trade and into more defensive sort of safe haven groups like consumer staples holding up the best today. also