we'll show you treasury yields right before we hand it over the ten-year note sitting at 4.488% the two-year at 4.836% how about your friends at bitcoin, joe >> 62. i want to know whether you want the knicks or the pacers >> oh, come on >> pacers. >> see >> i'm in pain i'm in pain >> i'm a sixers fan. >> we got to go. go knicks. join us next week. "squawk on the street" begins right now. ♪ friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, and david faber at post nine of the new york stock exchange. the s&p takes aim at all-time highs once again 5,254 is the record close to watch as the bulls whisper whether cpi will come in friendly next week our road map begins with the markets. dow aims for eight straight days of gains, and the s&p is at a five-week high also ahead, a lot to discuss

on the ev front, including the chinese ev maker that's making its debut right here at the nyse, and new data shows tesla is losing market share in china. plus, apple apologizes for its controversial new ipad ad, saying, "we missed the mark. let's begin with the markets. we mentioned the s&p, jim, trying to make some all-time highs. was that 5% pullback -- it got digested >> it got digested, and then the money didn't go back to tech it might happen today because taiwan semi had its monthly report and it was really strong. the rally broadened to all sorts of crazy names, and some people would say it had to falter because in the end, we got an upgrade of none other than -- >> 3m. >> i'll take that. this is losers win day warner bros. discovery, bumble today is like forgiveness day, but the warner brothers, just

right up david's alley i put you right in porterhouse and you're having the characteristic -- crystal with that one >> there was an upgrade of roblox >> that was from sell to hold. moffett nathanson, one of the better calls and david, i'm going to give david the call of a lifetime this is from -- david -- >> tell me, jim. what >> we're upgrading india, downgrading china. whole countries. upgrade philly, downgrade atlanta. >> they must do a lot of work in india. you think they travel the entire country, india, china? >> you're so cynical because they underweighted latin america, the brazilian operation was bad? >> that was a lot of travel time just to upgrade countries. >> they're underweight latin america. they say, jim, even though the fxi is positive now on 12 months, that this rally's not supported by fundamentals. >> i thought that was a shame that they said that, because in

truth, india should have been upgraded about three months ago, and china, well, china's actually making a little comeback, although that -- the trip to europe was -- wow. i mean, it's like, mao goes to france >> you're talking about xi's trip to europe >> yeah. >> okay. >> that was a different kind of experience there >> yeah. >> yeah. >> think anything is going to come out of it that will be positive for china >> how about it's about as good as war nothing. absolutely nothing they've got their friends, and then i don't know, they've got the people who are surprisingly pro-u.s. i don't think they counted on that like france. france is pro-u.s. >> and now you got putin headed to china, where he'll visit a couple of different cities to your appoipoint, kvw, banks,w highs. >> right >> goldman, highs. the only fly might be whether you think utilitys are a cautionary tale or not >> i'm not doing that anymore.

after reading constellation energy -- there's only 15 stocks in the utility index, which was started in january in 1929, inauspicious -- but those companies have growth. this is a quiz for david because he's an older gentleman. the utilities are doing so well that what nuclear power plant may be reopened for constellation energy come on, it's "jeopardy! >> indian point? i don't know three mile island. >> three mile island it was a video "jeopardy!" question >> you think the power generation story makes utilities less of a defensive playbook >> now -- >> wait a second are they really going to reopen three mile island? today? they're talking about it, yeah it's a really good story in the paper. >> there were a bunch of plants, and the one that didn't have a partial meltdown didn't close until 2019, but the thing about restarting it -- >> i didn't mean to get in

your -- >> that's okay it's really a soliloquy. i'm the only one who thinks this anyway i think there's actual growth in utilities that people didn't expect, because there's been no growth in utilities in 20 years, but you've got -- you've got alphabet out there looking for power. meta needs power >> we know -- we discuss it. we will continue to discuss the enormous needs, potentially, to power all of the datacenters yet to be built that are going to be running all the generative a.i. with the nvidia chips, even though they use less energy than the current chips. there are going to be so many more of them, they're going to use a lot more energy overall. you need a lot more capacity but it's a regulated industry. >> right well -- >> it needs enormous amounts of capital, obviously, to build new capacity, so i don't know how that all plays >> constellation is like the least regulated because that was the split. they did that, you know, i don't know, to me, you got the nuclear and the non-nuclear. but i think constellation energy is now, what, the number -- top three performer in the s&p look at that

that's a utility >> nuclear is -- it's not going to happen, because it takes so long, but -- >> well -- >> it does seem to be the answer in many ways to the conundrum of renewables to a certain extent and transition >> it's the taboo answer it's the complete answer, because it's clean the cleanest form of energy. they're doing some, we think, tv a is going to do one >> southern company got theirs open >> that may be the biggest one in history rather remarkable. but they got it open and everybody thinks that nuclear power is the way to go if you're in -- if you're google, if you're, you know, if you're microsoft >> well, many of these companies also have net zero promises that are out there. >> right that's how you do it >> to reduce their overall footprint, and therefore, they look for renewable sources closest to the datacenter that they're building in order to power it it's not the easiest combination to pull off.

>> no, and what stock has been incredible vertiv, ever since dave cote said, i think we're sitting on a gold mine. what >> as far as the broader market goes, get cpi on wednesday >> i know. >> yesterday -- yesterday, morgan stanley calls their preview the descent begins where they think core is going to be up 29 basis points and we'll get some relief, at least, on the insurance front. >> we -- i was talking with someone about having an insurer on, property casual, and i said, look, you're at the -- if i put them on at the crux right now, because it's rent and insurance, and we want to know -- i mean, i don't know if you caught the excellent coverage of becky with warren, but it doesn't sound like geico is playing the role it used to the company that uses the most a.i. when it comes to insurance is progressive i think it's flo >> it's flo. and the other guy is getting a

lot more play these days, have you noticed? in the flo ads >> jake? >> the other guy from progressive. >> oh, the -- the blond-haired dude yes. he needs a name. >> he needs a name but he's kind of pushed flo out a little bit >> flo -- >> it's tough at the top >> jake -- that's benioff. they do state farm he's always trying to get state farm on the show i want state farm. i don't care if they're -- look, it's a gigantic private company, but we need to put the feet to the fire for the insurers because it's rent, which, by the way, rent was up in manhattan, so it's still not working, but the rest of the country is -- >> are you willing, at this early stage, to start betting on easing inflation prints? >> yes >> and adding the cuts for the year >> you start seeing things rolled back, and actual prices rolled back. when steel rolls back, if we see, you know, plastic hasn't been that strong dow chemical has been one of the best stocks in the dow, but i just think we're going to see

rollover, uncoated free sheet. this stuff is coming down. paper's going to come down craft paper. my father used to sell that. any time he took it in, it went down the next month. you lose money >> if you're right, then maybe your buddy, jay, starts cutting a little sooner, no? >> yes, because the brown shoots are now everywhere everywhere >> everywhere? they went from being somewhere to everywhere? >> cheesecake factory had a good number >> as did sweet green. >> my gosh >> up 20 premarket >> three guys from georgetown. they had an incredible average unit volume, great plans they talk about this seattle factor there's a seattle -- it's like, they crushed it in seattle, so now the play's in seattle. sweet green, which i -- when i order, i don't care for it, candidly, but that's neither here nor there >> it's not germane to this conversation at all. >> but sweet green was an

amazing quarter. by the way, they were humbled because at the beginning, they were down. someone had the guts to ask them on the call, literally, why don't you raise your numbers they said, historically, weakness coming in this quarter. so, they have -- they have humiliate and great numbers, which i find is a great combination. >> the stock's performance for the year is astounding look at that over 200%. >> they call that the joya -- >> where were you a year ago to tell us it was time to buy sweet green? >> you should have watched "mad money. >> i do sometimes. >> we're all georgetown. my producer, regina, ben, they told me i had to recommend it because it's three georgetown guys but i thought better of it. the comp numbers were bad. >> they were >> five looking for four, and they do raise the range a point. >> how much for your brown shoots that's not brown, that's green it's really green. >> it's a salad place.

cava had great numbers i don't know if you caught that one. >> all the places down the block, get the "c" removed, the "b"? >> i took a "c" and published it i don't know but no, i'll explaining this to david. some of the better for you do a much better than -- no one's talking about this everybody says mcdonald', the burger's too expensive how about, if it did well for your body, cava, sweetgreen, it's doing better than the stuff that causes a spike in cholesterol and hardening the arteries >> how does chipotle come out in the nutrition side >> very good harden the arteries versus lowering of cholesterol. i'm not kidding. >> and now, we got -- >> you really want to lower your cholesterol, take a look at that -- >> rick's talking about -- is that the name of this -- the lilly pill >> what? >> the one they hope to get data on by next year.

>> yes >> and they will come up with a better name. >> that stock's going up again, although we're waiting for, if you remember, in the middle of march, they said, we're about to do a big launch of another trial of their anti-alzheimer's. nothing. crickets on that study that's why -- actually, biogen does not have good numbers, but when they do the -- i was talking with someone who works at a major mri company when they get this study for dementia, you're going to have to prove that your parents have it, and that you have the beginning of dementia. >> in order to get it covered by insurance? >> no, you can't afford it otherwise. >> okay. >> i went to the eye doctor yesterday, dilated my pupils, and i said, i'd like to pay, and he said, you don't have to pay i said, oh, we're old friends. he said, no, medicare. medicare it's coming for you, partner >> how much did i pay for that for your eye care. >> how much is your tie?

>> the medical costs were so high, david can't afford ties. that's how bad it is >> they're killing us all. yeah so many of you old people around >> we're not old middle age please >> you got it. sure if you'll take middle age, i will too when we come back, apple apologizing for that controversial ipad ad, and we'll get to a bunch of movers, again, double-digit movers this morning, drop box, novavax and some others. l-meig olook positive as we have alti hhsnce again in sight. stay with us at morgan stanley, old school hard work meets bold new thinking. (laughter) at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley.

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♪ winters come and they go ♪ ♪ and we watch the melting snow ♪ >> apple's new ipad pro ad sparking that backlash for its depiction of creative tools being crushed. in response, the company's apologized apple's vp of marketing sents a statement that said, "we missed the mark with this video, and we're sorry. company also says it does not plan to run the ad on tv kind of remarkable, jim, how much coverage this got >> right well, i think because it was off message for a great company. it didn't seem like anything they would ever do they're so pro all the -- i guess, all different technology, actually, celebrates people. >> it was off message for them, but it was also right on message for those who have the fear of the creative community being destroyed by generative a.i. >> yes i went to a celebration for my

friend who won a great award he runs -- >> i just saw him at milken briefly. >> fantastic guy and we talked about the idea of how much a.i. is, you know, how important it is. it's not going to take over the world. but at the end, there was a little bit of a music clip, and it said it was written by someone, and i realized that the reason why i think it said that was because when you go to a gtc event, when you go to an nvidia event, they make it clear that all music is written by machine. so, i think that the creativity is stifled by that, but -- >> yeah. >> that's what i thought that was like >> right i think it did, in a different era, people may not have reacted in the same way. >> it's kind of like we now accept it. >> not that you like watching that anyway, things being destroyed. >> how about when you read these news stories and it's so obviously written by a.i such and such is down because it

lost $500 million, but it was a charge >> it's going to get a lot better, don't you worry. very quickly when your favorite blackwells get deployed, it's all over. >> did you see the taiwan semi number that's clearly the bill for blackwell. that's what happened with taiwan semi >> tell us more about taiwan semi >> taiwan semi, the numbers -- the linked month-to-month numbers were extraordinary, and what happens when you have that is that's like a gigantic order, but amd is going to go up on that, but so will all the applied materials. but the numbers were very convincing as good as the numbers for tesla were bad >> because they are manufacturing the blackwell. >> they are. yes. march 2024, 195 million, and april, 236 million that's 20% comp. year over year, 59% comp that stock got hit very badly when they reported look where it is now it fell to $136 when it reported that was ill advised

>> meantime, we'll get cramer's "mad dash," countdown to the opening bell jim mentions autos talk about the prospect of new tariffs on things like chinese evs. futures hanging in there on this friday don't go away. do you charge forward? freeze in your tracks? (♪♪) or, let curiosity light the way. at t. rowe price, we're asking smart questions about opportunities like clean water. and how clean water advances can help transform our tomorrows. better questions. better outcomes. t. rowe price at pgim, finding opportunity in fixed income today, helps secure tomorrow. our time-tested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. pgim investments. shaping tomorrow today.

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all right. it's a friday version of the "mad dash. we stand for it to celebrate friday as well >> oh my god, you're hearing hokas? i love that style. hokas were introduced -- we introduced them on "mad money," and everyone says they're an overnight success. it was 14 years ago. it took that long. martinez is terrific >> we'll look at the end of this, but we want to talk akamai >> akamai has a division which i think is the foremost cybersecurity division that nobody talks about they have a u.s. army contract more than 20% growth, but they have a content delivery network system, which is like fastly, and frankly, also, cloudflare, which is a good company. and those are awful, because companies -- some people feel letter x have been cutting back. there is a social network

company, we don't know who because they have not disclosed, that pulled out of akamai, and that was a loss of more than -- i mean, the amount of money that people poured in they lost 40 to $60 million because that social media company pulled out >> of the content delivery contract with them with this division of akamai >> you have this one division that is just on fire and would be the jewel of cybersecurity, and it's being masked by this content delivery network system which is old-fashioned they need to consolidate but because of the ftc, i think they can't fastly needs to merge with akamai or akamai needs to merge with cloudflare and let cloudflare, matthew prince, take it over. has to happen. but right now, buried within this is maybe the jewel of the cybersecurity. >> interesting >> but cybersecurity's not going to outweigh the bad results? >> people can't believe how much business was just brought in-house they have a great zero trust division they did -- unlike some

companies that struggled to defend against attacks, akamai is capable of protecting the hyperscalers but they wouldn't reveal who the hyperscaler is they have great technology, and they have another company that's doing poorly i think this one, david, is worth a great deal if you close the -- or offload the poor division >> figure out a way -- got it. >> then it flies you'll love it you'll be doing this story, david. >> i have more numbers i don't know if it can be reverse trust or you just spin it we'll look into it >> oh yeah >> meanwhile, we've got an opening bell about five minutes from now you can catch us any time and anywhere by listening to and following the "squawk on the street: opening bell" podcast. >> people are doing it, you know >> i talked to somebody yesterday who's listening to the podcast. >> they listen to e poasthdct. >> i know. i actually asked them, really, where? in the car, about 11:00. oh, great.

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>> announcer: the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. chinese ev maker debuting at the big board today, ticker symbol zk, backed by jili.

got upsized. values of more than $5 billion, and we will talk to the cfo, jim, in the next hour. >> good. this is obviously one of the hottest areas, we have to figure out the -- "the ft" had a story about how tesla's getting crushed in china tesla's share dropping pretty precipitously. i think these fellas -- we could ask him about the robo taxi. they don't need no stinking robo taxi to get the numbers. zeekr is doing well. >> i'm reviewing the corporate structure here >> the government -- our government is trying to keep these guys out >> they are, and they probably will this is the canaan islands and then through -- it's not a -- not a -- it's a relatively complex corporate structure for zeekr. >> the caymans everything good comes out of the caymans. >> yeah. it's just a lot to keep in mind. we'll discuss it later with the cfo. >> the cars out front look really good, and this is kind of out of nowhere also, this is what president xi

should come to and say, look, you know, you think you're our enemy. look what we're doing for you, president xi he has to rethink his play >> let's get the opening bell. of course, zeekr ringing the bell here at the big board and as we said, cfo's coming up in about an hour at the nasdaq this morning, it's mobile health network solutions, celebrating its recent ipo >> very good >> jim, at the same time, you got the story on the tape out of bloomberg about the white house may be unveiling some tariffs on evs, solar cells, batteries out of china >> look, it's an existential crisis obviously, the most -- i think the best reporting that we have had this year was phil lebeau in chile just explaining, look, if you don't have any tariffs, they own the market very quickly. and when i saw that, i said, you know what? they won't stop. they will find a way to get through these guys

they'll find a way to get these cars in, and then they'll just wipe -- they'll do exactly what bill ford said, not the ga, but the guy who runs ford -- he's the chairman they'll destroy our industry so, i think that you have to do this we just can't compete. $8,000 car never compete. >> that's in addition to what we've already put on to steel and aluminum in the last couple of months. >> okay. david. >> yes >> manchurian candidate? >> i don't know. they can raise capital here, but they can't sell their cars here. >> but isn't it incredible how open our markets are, and yet, try to do something over there >> no. these are the markets you still want to raise the capital in, our transparency, the rule of law, so many other reasons that are beneficial that's why our capital markets are still -- i sound like jamie dimon now -- the envy of the world. >> i'm working with jamie dimon. >> the envy of the world >> friendly neighbors to the north and south.

>> we're blessed by the land we got an incredible military. >> no successor? tufts. >> no successor. by the way, queens too queens and tufts >> get out >> yeah. oh yeah. >> oh my let's just put jamie up here, right? >> yeah. >> how many years have you been ceo? >> 17. >> how many -- you're like -- aren't you like howard schultz there's no successor to you? oh no, howard schultz started starbucks. i don't think you started -- >> he didn't start starbucks he bought it it was a handful of coffee stores he built it, but he didn't start it >> there was an article in "the journal" about starbucks >> zeekr is offering bevs and technology-driven solutions and they aspire to lead the electrification, the intelligentization -- i don't know that that's a word, but apparently it is -- and innovation of the automobile industry >> jim's on his normalization stabilization craze. you can at intelligentization.

>> there's -- travel's normalizing. >> is it intelligentizing, though >> what was revenge travel >> i don't know. >> i'm taking a trip to iceland for revenge? revenge against what >> you're all over airbnb yesterday. >> i thought airbnb was a great opportunity. i'm trying to get -- my daughter wants me to get the "up" house you see the "up" house it's on a crane. >> that was amazing. >> that's about as cool as it gets >> jim, speaking of ipos, david talked to solomon on monday. we did waldron yesterday goldman's adding to its all-time high from yesterday, and waldron did say even though the s1 filing -- the filings aren't crazy huge, still sees the trend up >> the numbers are fantastic david solomon, at one point viewed as suspect, i think, has demonstrated a pretty great level of leadership. >> yeah, nobody's talking about david solomon or questioning his

leadership but goldman has -- as carl just pointed out, hits a new all-time high >> american express, all-time high 3m there's some horses in this market and they're secretariat. they're not that -- i had number 11 that horse from japan. >> are you referring to jason kelce secretariat comments we'll go into it later >> i went to see -- >> you sure you want to go secretariat? >> ever been to the grave site >> no, but he was the greatest single horse of all, ever. >> going away. 18 lengths >> 1974, was it? >> amazing >> so, not a seattle slew, not affirmed >> the g.o.a.t. was secretariat. >> g.o.a.t. is secretariat, but american express, these are secretariat-like moves that's where i'm questioning you. >> yes they are we are having a bull market like you can't believe, and there are people who are being left behind, and they're called analysts and strategists because -- every day, you come in and there's guys that raise their price target and all it is is just trying to keep track

of -- look at that stock remember, steve squeri saying he had a weak three weeks in october? everyone shorted it. you know what? just send me an invitation to your funeral >> forward earnings are at an all-time high. >> i know. >> today, sam stovall takes his 12-month to $5,610 >> you find it in all sorts of strange places you come in, and texas roadhouse will have the greatest quarter ever brinker, and then you'll see -- pick a name, any name in the dow, and you start seeing -- right now, salesforce, for instance, david, is hub spot going to be bought by google salesforce is up 30 on monday if that doesn't happen. >> right i don't know >> may be the most expensive stock in the entire market >> it is expensive it's been around for quite some time, the idea that alphabet was moving in on a potential transaction for them so -- but i don't have any insight for you, sadly

>> i want to ask you about their m&a activity how was the fitbit is that breakout >> it took a long time >> that was breakout, right? >> it took a very long time to complete that transaction. >> they should have gopro. >> maybe not >> what was the top? >> what was the top? >> i saw a goat with a gopro on a surfboard in hawaii. >> worth every share >> wiz bang. >> you missed it meanwhile, i'm listening to you talk -- in one segment, we're talking brown shoots and the fed is going to have to cut, and the next, you're talking about secretariat and all these companies doing great. >> american pharoah. >> put the pastiche together >> a lot of stocks are going up because the fed, when -- right in the -- right in april, the day that the timorous interview with powell occurred, saying, longer, we can't let up, that

was the bottom, and ever since then, you've got stock after stock that could benefit from lower rates soaring, and this is a lower rate rally you think netflix is at $621 because it has some new movie we're going to watch this weekend? that's just called multiple expansion. >> it may be multiple expansion. not these reports that they might get some christmas day games, the nfl this is reporting from puck. did you see this >> oh, puck. >> it's on a wednesday, so because it's on a wednesday, it may be outside of -- it's not a -- it's not owned by any of the current contracts. >> when good friday comes on a thursday what are you talking about >> netflix might experiment. this is not our reporting. >> they say they never do sports >> everything now is tyson-paul, watching their workouts. >> i know, but it's -- >> tyson is eating raw meat to prepare. >> it's the greatest hype ever it really is >> yeah. >> it's like the billie jean king -- okay, bobby riggs.

>> it's not a good thing to eat raw meat >> it's 9:37, and you've not mentioned nba, and i'm beginning to think that you're on an intellectual vacation. >> i am not. let me mention nba, because, of course, we just mentioned nfl. we mentioned warner bros. discovery, shares of which didn't do much after earnings, but there has been a great deal of focus on this nba contract, the rights of which would begin after next season. 11 years or so in length the latest reports -- and i can confirm this as well -- >> is this a faber report? >> it's not. jim, the matching rights that warner bros. discovery has don't just relate to the potential of where our parent company, comcast, through nbc, of course, would acquire rights there and be a gains, but actually, also, this potential deal with amazon that the nba is negotiating. these matching rights, though, my understanding is were put in place when this contract was done last time, ten-plus years

ago, before you really had the emergence of streaming services in terms of for sports in particular, and so it does remain, i think, somewhat unclear if, in fact, warner bros. discovery were to move to say, hey, we want to match the amazon package is it purely monetary, or is it like terms, if the nba is saying, yes, but you have to only stream these games, so you can only do it on max, what will that mean in terms of the likelihood of warner bros. discovery deciding to match? so, any number of things here, but it figures prominently, as it did in this story, this upgrade here, into people's view of warner bros. discovery. how much will they have to spend? will they get the nba or won't they it goes back to the larger discussion about the power of sports and how important it is in terms of maintaining some semblance of a bundle of video programming and/or how important it is to the streaming services. >> it's interesting because the keybanc upgrade, a little countertrend, does say either way it goes, an nba resolution is likely to be a positive

>> right just get it resolved so people can figure out their discounted cash flow models but it is important to remember, it doesn't necessarily mean they have to match, if, in fact, nbc is -- they don't have to go after that one they could potentially say, hey, nba, we want the other package, but it's still unclear, at least, based on my reporting >> did you know you're breaking news i thought all that was done. >> it's not. there was reporting on it yesterday, and in their release yesterday, or in their earnings, they made it clear that the matching rights are not just -- they're broader. obviously, it doesn't apply to when disney already re-signed. you get your exclusive window, do your deal, but it does apply, potentially, to this we're not getting anything -- >> is adam silver involved directly in this >> i believe he is, yes. >> he's the head of duke >> is he i didn't know that >> some apple people on that board there. >> oh. >> they're talk. i would love it if apple got -- >> you know, i think more likely that it would be alphabet,

maybe, or youtube. they could, you know, in terms of -- in terms of an nba package as opposed to -- on a streamer if it's only streaming, and that was where it will be interesting to see if, in fact, they do -- >> you're so right people -- >> does max have to only have gains, you can't put them on tnt? >> they want more sports they've not been -- they've been a little ham-handed about sports, but in this last conference call, ruth porat talked about how important sports is to them. a lot of people like the youtube coverage i like the football. i think you got to -- it would be interesting to see if they got involved >> nvidia shares are up 2.2% i noticed the market value back to $2.26 trillion. it's kind of the next big data point, and it's -- the earnings are a little ways away >> may 22. but look -- >> between now and then, it's sort of a vacuum, isn't it >> people are saying that the spike in taiwan semi, tsm, is them i'm sure that lisa su, if she were here, would say, we put some orders in too, because they

have gpu but nvidia's been doing exactly what it did from july to december of 2023 where it did absolutely nothing except for making it -- digest would be the word we used to say. it's digesting the move. i think it's digesting because i think that jensen, in that amazing interview with bill mcdermott, jon fortt, the industrial revolution is alive and well we heard rene haas yesterday on air who told a fantastic story about the industrial revolution, and the industrial revolution is on geez, arm is now up from the so-called disappointment amazing. remember what jensen is saying all computing has to change. everything that you have everything that you see is going to be going gpu. >> right >> everything. >> can you have an enterprise spending crush and a consumer slowdown at the same time? >> yes, i think you can, because the enterprise is a -- it's a --

these companies all act like it's winner take all, loser take none i mean, musk wants to do -- i don't know if you saw the piece, if he gets the vote -- this was the jonas piece i'm referring to -- if he gets the shareholder vote, he wants to go all in a.i., and he's nvidia. >> he's also -- musk also has his xai, which has raised, i think, $6 billion at an $18 billion valuation, all of which is going to be plowed right into datacenters chips, things like that. >> you got alphabet also i had -- aristonet, that stock has been incredible. they do the ethernet that connects the gpu and all the -- they're both rivals, too, because nvidia's got its own product. this is alphabet it's -- >> but your point is that this spending, you can't cut back on this spending. >> that's exactly my point people feel that oracle has to keep spending in order to stay cogent if you cut back, you lose. so, i mean, this is what jensen's been saying when i was

out there. he says, look, they have to have it they keep -- i want them to develop their own stuff for inference, but they're not going to be able to make it for training, which is the thing that people -- everybody wants to be able to use the data that's when you look at salesforce's ads that's about the data. palo alto, they have a series of new ads with keanu reeves. >> jensen's also made the point that every sovereign is going to want to do this in their own bucket for security reasons. it's not just fungible across the world. >> he doesn't want to have h hegemony he doesn't want to have it be only in english. that's nationalistic he's anti-xenophobe. >> you don't have to do what in english? >> if you don't do your own sovereign a.i. -- >> you're right. that's in addition to -- that spending is in addition to apple, amazon, alphabet, meta and microsoft. >> i think, look, is it the

greatest story ever told no, but it is the story that's unfolding, and those who keep trying to trade these stocks run into the wall, which is we have to have the latest and greatest, because everybody else has it. because you have to do speed i mean, you know, when you're on instagram, and you want to run -- let's say you want to run full-length movie on instagram, blackwell. blackwell can let you do that. you want to run a 15-minute short? you can do it. >> all that said -- >> when i come back to were a, obviously, a big win for softbank, which continues to own a lot of it. that said, i am reminded that they owned a lot of nvidia in 2019 softbank a lot. >> everybody sold except for my trust. >> they sold in 2019 >> even though i named my dog nvidia, they sold anyway >> they sold anyway. >> that's so disrespectful >> even though they made money on the nvidia position, softbank, obviously, i'm sure they wish they had that one back >> by the way, arm can hold that because rene is delivering

people misunderstood remember, it was just the iot, the internet of things, it was that one line that kept that stock down and every analyst, they pounced on that, but if you forget iot, which actually is going to come back in the second half, that stock could have a real run here >> all that said, jim, watching the labor market, zip recruiter with not such great comments about the labor market, at least year to date the stock's close to a new low >> we need that. we've got to have wages down jay's got to have that he has to have wages down in order to be able to do what we have to do at least flat if not down. everyone's interested in what the immigrants are going to be able to do, to be able to keep prices down. legal immigrants we need them -- the administration is not really giving us the work permit. >> that's a real conundrum >> right i know you're -- you think about this all the time, and it's -- a lot of us think about it all the time we have a birthrate -- thank you -- 1.7 we don't have enough people. >> we're below replacement, and

we've always relied on immigration. always >> but now -- >> as a significant growth factor for the company >> 14% of our country is immigrant, but we just don't have enough people, and a.i. will not be able to make up the number >> you don't believe so. we need more people in the labor force. >> yes desperate. >> does this naturally lead to a discussion about rounding up 11 million illegals if trump becomes president? >> oh, you know, i just -- that's such a tough question look, i think we need legal immigration. i don't want to go beyond that, because i think that we probably have a system that we could use. but when i talk to ark best on monday, a trucking company that happens to have a partnership with nvidia for forklifts, it's not like the forklifts are going to take the place of humans. they can't find humans that want to run a forklift. they can't >> right but to carl's point, because right now, it appears, i mean, it's early at some point, we're going to have to start talking about the presidential election. it's not that far away

if you, in fact, do deport 11 million people, that would seem to have an impact on economic activity >> or at least labor force >> it would -- sure. i mean, you can't -- a lot of these jobs, look, when i ran those restaurants, we paid well above minimum wage we worked with people who were, you know, you got out of prison, and i think it's terrific opportunity to be able to hire someone who's paid their dues, and that's who gets jobs, which is why i like a great full employment but we don't have enough people who want to wash dishes like jensen did at denny's. he said, i was a busboy. >> i was a busboy. >> yeah. we used to look down on dishwashers. then, one day, they had me dish wash, and my dad came in at 2:30 and said, you're fired i said, dad, you can't fire me he said, my son is not a dishwasher, he's a busboy. and right then, i realized, that's the truth jensen said the same thing i'm a dishwasher i should have been a busboy. both of us end up in the same place. we each have $17 billion

no, not really he probably has $40 billion. i don't know how much he has >> he's really, really, really, really, really wealthy >> he doesn't care >> i don't think he cay cares t that much about it >> that leather jacket >> got a lot of leather jackets. what's he going to do with all his money? >> he doesn't think about it he thinks big. he thinks bigger than all of us. in 2010, he was thinking about how to think -- he was thinking about blackwell in 2010, which is incredible. >> that is incredible. as for the markets today, dow now closing in on 5% gain for may. back close to double-digit for the year and then, check bonds today. again, a data-light week, but we will look forward to umich in about ten minutes.

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it's time for jim and stop trading. >> people upgrade 3m almost everybody will be in the end and see the current ceo won't get the credit he should i'm going to give it to him right now. mike roman, inherited a company he didn't know how bad it was doing, turned it around and done everything right now he's going to depart as the numbers get better it's all mike's. >> i'm old enough to think of 3m as an economic bellwether because of all the skus they sold into channels. >> my dad sold scotch tape they treated my dad really well. they were always nice to my dad. always remember that because everyone else denigrated because he was a sales guy. >> i have rekurgs. this is jensen huang, this is an nvidia health care company and then crh, it's european, but the stock up big, a materials company, up huge today, up 5%.

>> sounds like you had fun on ellis island. >> celebration immigration reminds you, you see the statute of liberty, came over as a little boy, and you remember that the country was built on immigration. 40 million people came through ellis island and think what's happening now and how fortunate but remember how great the country is it's a country of immigrants. >> i like that. >> very stirring into good weekend. >> thank you. >> see you tonight "mad money" at 6:00 p.m. we're waiting on zeekr's opening trade. the cfo will join us after a break. and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪

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or college, since you like to get schooled. that's a pretty good burn, right? >> good friday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber and mike santoli at post nine of the new york stock exchange sara eisen has the morning off after a very busy week of travel and more markets looking pretty good. it's been a solid few days for

the dow and the s&p. just a handful of points from an all-time closing high and closing in once again on a double digit gain for the year. >> we are 30 minutes into the trading session. here are three movers we're watching cloud stock akamai slumping, guidance disappointed an the company warned of slowing traffic growth, shares down 8% and shares of novavax surging this morning on a more than a billion dollar licensing deal involving covid vaccines we'll have much more on that ahead. the stock up 130%. very crowded short and sweetgreen another gainer, shares up nearly 200% year to date as the salad chain boosts its 2024 outlook, saying it expect same stores sales growth 6% above its previous range. up 42% how about that. >> that is wow look at that >> not a wow. >> not a tiny company. >> consumer sentiment out moments ago. let's get to rick santelli for

those numbers. rick >> david, the markets are giving everyone a bit of time there's surprises here don't be surprised if interest rates move higher. the university of michigan sentiment preliminary may reading, expected to be in the high 70s, comes in light at 67.4 we're expecting the number closer to 67 -- 76.5 this follows 77.2, really big miss now, all the numbers i'm giving you including the headline are all the extremes since november of last year so this is the weakest since november of last year. current conditions, 68.8 we were expecting 9. in the rearview mirror 79 weakest since november of last year expectation, 66.5. a big miss expecting 75.5 this is also the weakestsince november of last year. now here's what's going to push rates higher one-year inflation ticked up

from 3. 2 to 3.5, highest since november of last year. 5 to 10-year inflation from 3% expected, 3%, last month, 3.1. highest since you guessed it november of last year. granted these are surveys and whether it's the household survey for employment and jobs or this, surveys make many scratch their heads in the day of cell phones and who's going to answer a number that's not in your phone however, however, no matter how you slice it, if you stick with the numbers, these are surprisingly weak on the strength of the economy and surprisingly strong on the inflation. carl, back to you. >> thank you so much, rick santelli the s&p ahead of the numbers setting near some five-week highs on pace for a third week of gains dow on track for eight straight days of gain a lot of consumer and inflation data coming at us in the next week tuesday we get producer prices

wednesday the all-important cpi, retail sales and on thursday jobless claims, housing starts and industrial production also a number of retail report cards names like home depot, walmart, under armour and a lot more, the umich numbers, mike, are interesting, although 10-year has not cracked 4.5 again. >> not a big bond market response yet anyway, but did cool off the equity rally a little bit i think stocks mostly this week have been taking advantage of relatively light data calendar it's been a bit of a vacuum and has confirmed in a lot of ways that longer term uptrend is fine we have this 5% pull back off of a very overheated level in late march and we've kind of ground higher and recovered that late day rallies are at least intraday rallies almost every day of the last two weeks. sort of show people we're waiting for a bigger dip we never got the sentiment flush and the rest of it interestingly, s&p back to where we were let's say the last week

or two of march for the first time and the s&p's forward p/e is down half a point because earnings have come through that's the story if you believe that it could be that neat and tidy, but, you know, yields have also cooperated. i think that's a big part of it. how much of the consumer fatigue we might be seeing in various places is something that we have to actually worry about. extrapolating from here. and how much of it is just kind of the usual noise i think the bond market is basically going to take next week a week's inflation numbers as the swing factor in terms of whether we're okay to be relaxing a little bit more. i expect if we get to the high and the s&p up another couple percent the market start to look short term, overbought, that will be the test. >> let's continue that conversation and talk about the run-up, joining us at post nine, is rbc's laurie callseena, hope you don't mind a couple macro things to start. there is this hope an inline cpi number would begin to

demonstrate some moderation of inputs like auto insurance is that reaching too far for the doves or bulls >> i mean, look, it feels like this rate cut optimism has really just come back over the last week. if i think back to last week in my client meetings, people were getting nervous on the consumer, some of these earnings reports had come out, then we got a couple wonky jobs reports and all of a sudden it's like, rate cuts are back on the table and we had gone intfrom no cuts to they're coming back. i'm misty fide as to why we've seen such a strong response. the jobs data, but i am concerned maybe people's enthusiasm for this is a little bit too high again we'll see what the cpi print shows next week. >> have you been impressed with what equities have been able to do in the absence of a lot of data noise >> look, i agree, you know, i heard the show earlier this week and some of jim's comments on the consumer, and i'm seeing the same thing in terms of our work, that there's a little bit of softening going on, you're seeing that in the sentiment data today personally, i don't feel like equities really fell enough in that draw down we had.

we got to about 5.5% on the lows i think it should have been worse than that, no more than 10%, but never saw sentiment collapse mike you mentioned this, i watch aai closely, and it never really got down into, you know, net bear territory for maybe half a minute and now we bounce back all of a sudden and elevated again. i'm worried that investors don't really have a fully formed thesis on inflation, and what's going to really drive that down. i think the economics community really didn't have a good handle on why we had those nasty surprises in the first three months of the year, and so i'm not really hearing good explanations for why it's going to fall. >> right i guess in addition to the softer jobs numbers we got, we also had powell, at least suggest, that the bar for any kind of a hike is very, very high, even if they're willing to wait a little bit longer here. there's this other story line out there that well the rest of the world is really kicking in if you look at consumer discretionary in other markets it seems like it might be taking

up some of the slack you have that piece of it. maybe it's a rationalization of what's going on. but against that is the experience of last summer when you mentioned we didn't fall enough, right. you got the 5% drop off the july high came back. everything -- everyone thinks it's okay. and then we rolled over again. >> yeah. i do agree on sort of the non-u.s. piece of it one of the things we've noticed in the earnings commentary it's not like people are saying europe and china are fantastic, but it's pretty balanced if i go back to prior quarters for most of the last year it's been negative on china and mostly negative on europe and now some companies it's okay it's getting a little bit better starting to turn around. other companies are still, you know, singing a negative tune. it does feel something has changed in the non-u.s. picture. >> what about earnings overall, laurie it does feel anecdotically at least that many days we're hear guidance is being issued and not well received by investors we had many stocks that were down even though the guidance may have been tweaked. i don't know what that means for multiples but give me the grade

on what you saw from earnings season >> one set of stats we track is those beating on revenues and those jump around every time we run the numbers. it's been high earnings beat and mediocre revenue beats there's a fierce effort for companies to beat those ruts, i don't want to say manufactured, but some might use the one-day reaction or the two-day reaction it's hard to parse the one-day reaction, the immediate stock price reaction to whether you beat or miss and early nonreporting season across the russell 1,000 if you were beating you were still underperforming the broader market and not getting rewarded the first couple weeks we're seeing the reverse in the stats where the beats matter and the data kind of looks a bit more normal. >> what explains that? >> you know, i think to be honest, a lot of its is sector mix. we had a lot of financials and industrials early on, and there were also some of the technology companies where i think expectations were maybe, you know, higher than official we're also seeing more clear

evidence that in the mag seven the earnings growth expectations are decelerating i think that kind of always makes people have indigestion when you have high growth rates and decelerated growth rates going forward. we got out of that it's acting a little bit normally, found its groove, it's still not fantastic even the sort of out performance we're seeing on those beats is not as strong as we've seen in certain quarters over the past year. they're outperforming but maybe not quite as much as they could. >> yeah. it's been fascinating to watch companies that didn't raise, for example, just get shellacked maybe we'll talk more retail in the coming weeks thank you. good to see you. >> thanks for having me. >> we've got a new ev player entering the public markets today. chinese automaker zeekr, its debut comes as tesla reportedly ramps up layoffs in china due to a slowdown in sales in that country. to eunice yoon for more on this story. eunice >> thanks, david an chinese social media tonight

people are congratulating zeekr on its debut and some media are saying that this is only going to encourage more chinese companies to consider the u.s. for a listing. zeekr sold 21 million american deposit torre shares at $21 each raising $441 million zeekr set for a $5.2 billion valuation for its debut and this is the biggest chinese ipo since 2021 when ride hill giant didi listed after a cyber security crackdown delisting, but it's not too shab forb a company like zeekr, a relative newcomer to the chinese car market zeekr founded in 2021 and still pretty small, sold 16,000 cars in april this is versus tesla's 62,000. it has a big ambitions it hopes to sell 230,000 by the end of this year and it's

already in europe, in sweden, netherlands, it's eyeing a bigger expansion in europe as well as latin america and said that it's planning to be in hong kong as well as macao by the end of this year their big challenge really is breaking into this market in china. 139 ev brands in this market alone. it's very, very crowded, so zeekr has two ways in which it's hoping to distinguish itself one is by offering very unusual features, for example, at the auto show just a couple weeks ago it unveiled a -- what it described as a living room on wheels which is a minivan that has rotating seats, but the other way in which it could distinguish itself is that its parent is a big, established player called geely, and it has been able to leverage off of that relationship. in fact, there's been some reporting that its parent geely has indicated it would subscribe to more than 90% of zeekr's

stock. in a way, potentially stabilizing any major sways in the market guys >> eunice, geely already will continue to control the company, which is an important point with ownership of over 50%. as for our old friend tesla, you know, we continually get market share system in terms of where things stand, but what are you hearing slash seeing on the ground when it comes to tesla, and its sale of vehicles in china? >> well n terms of its sales, they have been dropping. if you look at the march numbers for tesla versus april, it was like 80,000 in march, 60,000 in april, so we are seeing a bit of a slump off of their just like everybody else fears a massive price war. tesla continues to cut its prices then just in the past couple of days, there have been more and more reports that there have been layoffs at its shanghai factory. again, reflecting some of the

troubles that elon musk and tesla have had worldwide with its staffing. >> obviously, a global theme eunice, thank you very much. meanwhile, president biden expected to impose tariffs on china evs meghan kasell in d.c. with more on that story. >> reporter: good morning. president biden is set to impose new tariffs on china not just focused on evs as you said but solar cells and batteries according to reporting from bloomberg and reuters. the exact level of tariff rates is not clear but reports suggest a formal announcement could come as soon as next week these tariffs would be a result of the administration's review of those existing duties that president trump initially put in place in 2018. most, if not all of those tariffs that are in place are expected to stay in place after this review. these duties on green technologies would come in addition to those. the sources i spoke with had been expecting this move on solar and evs. they made overcapacity in this

area a major focus of her trip to beijing in april and my sources added that additional tariffs or other restrictive measures against criminal minerals and semiconductors could be on the table so they will be keeping an eye out for that once we got the formal announcement from the administration this does represent a ratcheting up from president biden of tensions in the u.s.-china relationship it's a much more targeted approach than former president trump's suggestion of 60% tariffs on all imports from china but does show us that tariffs will be in play no matter who wins the white house in november. guys >> for sure. meghan, thank you very much. >> as we head to a break our road map for the rest of the hour why the consumer may be cracking signs investors need to watch. >> chinese ev maker zeekr is going public and gone public the company's cfo will join us later this hour. >> the street's big bet on sports goldman sachs, head of sports an

entertainment, joins to talk about the landscape and deal making environment as equities holding on to gains post umich a lot mo ctiesn quk the street.aw stay with us in any business, you ride the line between numbers and people. what's right for the business and what's best for everyone who depends on it. solving today's challenges while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there. ♪ (alarm sound) ♪ amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia. bye jen.

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sure, honey! this generation is so dramatic! move with xfinity. certain the consumer who's at the lower deciles of income appears to be making more choices around how they spend their money. we're not seeing a lot of that right now. we tend to play a little bit higher income. >> we've definitely seen

segments where customers have moved from some items trading down to others or moving from one category to another. >> when we look at consumers r they trading down, for example, on uber eats are they eating at less expensive restaurants. we see no evidence of that. >> frequency is up. >> we're seeing more cautiousness of the low-income consumer >> those are just some of the ceos on cnbc in the past week weighing in on the health of the consumer american shoppers have been resilient over the past few quarters, but may be showing signs of cracking. kate rodgers is here with more very much kind of a mixed message we got from those clips, kate. >> certainly all over the place. we are seeing a lot more restraint in how consumers spend their time and money, particularly in the restaurant sector this earnings cycle there has been a big emphasis on value as brands from mcdonald's to wendy's and dave and busters

noting low income consumers are starting to spend less starbucks noted a pullback in it owescational comer with the ceo telling analysts in this environment many customers have been more exacting about where and how they choose to spend their money. there have been exception in the sector chipotle, wing stop, dutch bros, all posting strong same-store sales number chipotle noting it was seeing growth in all income cohorts, rarity in this environment another brand seeing momentum is sweet groene, same-store sales growth of 5% the stock flying this morning up 40%. i spoke with the ceo who said their dinner business has grown with the addition of new p proteins like steak to the menu. >> our price points are around $15, while 15 can feel like a premium pricing for lunch, at dinner it's actually quite value, especially in an inflationary environment we've seen while many people have talked about a consumer that is hurting, we feel that -- our

consumers are pretty resilient and i think value what we're putting out there for them. >> and that's certainly what it's all about in this environment. perceived value when worth it to spend your money where and how and i think we're seeing the haves and have nots in this environment. >> i was thinking of some of the names that have beaten comps by not that much, i mean in this case sweetgreen beat by a point, others like shake shashack havee rewarded to those getting punished. >> the stocks performing in this environment, sweet green, shake shack, cava. more expensive names for consumers. people are spending more money and investors are pbuying into that idea. >> pretty remarkable not just today's gain but as david pointed out what it's done in the past year. kate rodgers today looking at the consumer. what do these consumer cracks mean for the fed and

rates? our senior economics reporter steve liesman has a preview of a big interview this afternoon, steve? >> i was listening to that discussion you had with kate, carl and let me tell you, kate and i have been going back and forth in the background, a little reporter's notebook, the consumer has cracked, is cracking, cracks appearing in the consumer let me just go back and show you, carl, if you remember, i know it seems like a year ago but it was a month ago the government released the march real consumer spending data, and it was pretty strong that led to a bunch of markups to the second quarter gdp. it's the reason why some of those reports went from say the 1 to 2% estimate from gdp to the 2 to 3% estimate that's where i'm seeing most of the street right now. fast forward to the reporting that kate has done and all of the other forecasts that are out there and commentary from the companies, and it seems like all

of a sudden we're getting a whiff of weakness from the consumer, and i'll just say one other thing here when it comes to the data, we reported our retail monitor, which was kind of on the weak side all of the weak side was exactly where kate was reporting it n food and beverage and restaurants what i think may be going on here, carl, i'm interested the your thoughts on this, is the consumer balking at some of these high prices at restaurants, which is a discretionary item not all restaurants some are providing value, and the consumer is just coming back and speaking up and saying you know what, too much for that burger and beer when it comes to 30 bucks, it needs to be lower. we need to see how the restaurants respond. >> and steve, i guess the question is also, how this trend as much as we can discern it, feeds into what you might hear from those fed presidents later. in other words, are they seeing this as essentially helpful to their cause against inflation or something to worry about or some combination of the two

>> exactly what they teach in economics is pricing is a conversation. you come in and nobody speaks a word you look at the menu and the menu says 30 and you say no. and then you go away and then you come back and if the men knew says 25, you might say yes. the consumer and the seller are -- and the restaurant are laying a conversation right now, and it looks like the consumer is balking a little bit and i think the fed looks at this as yeah, let this go on let this create some kind of downward shift and as you know, mike, the critical question here from an investor standpoint is profit margins, whether or not some of these retailers have room in productivity to bring down their costs to protect their margins or some of these higher margins, some of which have survived the pandemic, whether or not they have to compress a little bit and then maybe, you know, some of these -- we may get some worse outcomes from that which you have to watch more no doubt the fed is watching the

consumer, watching this conversation, to see if this leads to lower prices with a little bit weaker growth before i forget, let's not lose sight of the most important things out there employment and wage gains. both of those are the essential building blocks of the foundation of consumer spending and they look pretty good. so you could see some cracks without a cracking >> financiallly steve, promote you have this afternoon but curious whether or not you think there's -- whether part of the delta within the consumer is about exposure to stocks i was just looking at umich and the median value of a stock market investment all-time high. >> well, here's the thing. i'm going to be reporting on monday some additional data on the consumer balance looking at credit card delinquencies from the consumer standpoint and the bank stand point what we're seeing in the data is some weakening in the low-income

consumer or some developing issues that are worth watching when it comes to the low-end consumer and not so much with the higher end consumer. some of the folks i'm talking to saying, you know, watch american express, not necessarily some of the other credit card companies that deal more with low income consumers. that's where you want to watch it when it comes to what we have this afternoon, we've got two fed officials, carl, and as you know that's one fed official short of an official meeting they have to have an official announcement if we had three of them i'm joking, of course. but we have austan goolsbee from chicago and neel kashkari from right here in minneapolis, so we're going to sit them both down and get their views neel kashkari out with an important piece, an essay he wrote yesterday, that talked about his view on what the neutral rate is and how restrictive the federal reserve is that is the key question that everybody is talking about, is the fed at the right place to bring down inflation or the federal reserve in place where it needs to, i don't know, maybe

go higher to attack the inflation problem or maybe bring it down a little bit here? >> steve, thank you. steve liesman, obviously, also coming up with some big interviews later in the day. we are getting some indications on zeekr, that, of course, is the chinese ev maker going public today 23 to $25 a share is where we're at least seeing the early ask right now. obviously, went public, not, obviously, went public at 21, so it would be a nice move higher, in fact, if it maintained or even exceeded that level. >> 10, 15% kind of what you shoot for. >> the biggest gainer on the s&p this week, the biggest gainers, met her toledo with an 18% increase one big gainer today however vaccine maker novavax. this was down 98% from its covid era high until this morning. we're back in a moment

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welcome back to "squawk on the street." as you see there, shares of novavax, yeah, that's a pretty big move, isn't it

let's get to angelica peebles who has more on what is behind this move this morning. >> hey, david. yeah, novavax is getting a new lease on life thanks to sanofi the companies are saying they'll partner to sell novavax's covid vaccine and develop a covid and flu combination shot novavax will get $500 million right away and $700 million if they meet certain milestones, that's life-changing for novavax. last year the company warned there was substantial doubt about its future and that warning goes away with this deal novavax struggled to bring its protein based vaccine to the market and fell behind mrna vaccine makers pfizer and moderna and hasn't been able to catch up since now sanofi will take a lead on selling that covid vaccine the key is the combinations. sanofi is the leading flu manufacturer and this gives sanofi a way to develop a competing non-mrna option. novavax sees combinations as the

real opportunity for them. they're saying that flu and covid combination as well as other possible combinations, could make this a potentially multibillion dollar opportunity. carl >> angelica, pretty remarkable appreciate that, what's going on with that name. still ahead, chinese ev maker zeekr goes public at the nyse current indications about $24 to mpy'after pricing at $21 and the coans cfo will join us in just a moment. switch to shopify so you can build it better, scale

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♪ welcome back to "squawk on the street." i'm silvana henao with your cnbc news update. the trump hush money trial back under way this morning with madelyne westerhout back on the stand. she was the former president's

executive assistant at the white house. nbc news has also learned through multiple sources that michael cohen will begin testifying on monday and is expected to be on the stand for several days russian forces launched an armored ground attack in car kyiv today the attack on ukraine's second largest city opens up a new front in the war ukrainian forces pushed russia out of the area in 2022, but russian president vladimir putin has called for the creation of a so-called buffer zone in the border region. and a los angeles judge ruled late yesterday that music legend and beach boy founder brian wilson should be in a conservatorship to manage his personal and medical decisions the 81-year-old's doctor says he's suffering from a major neurocognitive disorder. the judge approved the petition following the recent death of wilson's wife who had handled most of his affairs. david, back to you.

>> thank you let's get to chinese ev maker zeekr. it is backed by the way china based geely, and it's debuting here at the nyse you can see $24 to $26 where the indications are right now. worth noting as well, geely will retain a more than 50% of the company's voting power, that is after this is completed, the public listing joining us at post nine is zeekr's cfo jing yuan. thank you for being here. >> thank you for having me. >> congrats on the initial public offering. we heard from our reporter in beijing the domestic market in china is a crowded one for ev makers. how do you distinguish zeekr from your competitors? >> sure. of course you look at the big picture, you know, the market over there, it's very, very crowded. but you look at each of the market's price brackets, there's definitely an open in the

premium market segment zeekr we've been selling cars mostly priced in 100 to 500 k and competing with the likes of mercedes, audi and lexus if you think about their offering, if you think about their competitive business, think about the products, whether combins the functionality and ev driving experience. >> you talk about the car of the future, your company has, as being not just a simple transportation tool but a center for the smart mobility experience what does that mean? >> yeah. so if you think about, for example, your phone, like ten years ago, 15 years ago, you used it to make calls. and you think about the first car, you know, you use it to move you from a to b nowadays, you can do much more in the car you can listen to music, watch a video, if you're lucky you have a system you can sleep in the

car and the car can drive itself if you think about robotaxis the future is going to be defined by this smart part of the vehicle not the transportation part. >> how important is that autonomous capability longer term to, you know, the size of the market and what people are going to be willing to pay >> yeah. if you think about, of course, longer terms, you know, it's like horizon you know sometimes ten years, 30 years, 20 years later, people are going to be able to sit in the car and the car going to drive by itself. of course the pathways are quite long and windy to a certain extent, but once you get there there will be no need for you to buy a car. you know, at this moment it was an uber or lyft, the capacity constrained by the number of drivers you have but in the future the car can drive by itself you can jstore t in the car park when there's a taylor swift show or something

the car comes out and drives by itself and charges by itself the future is infinity. >> this is an interesting discussion for the u.s. consumer who historically has loved car ownership. right. it's sort of how you express yourself. >> yes. >> do you see that going away at least in the china market? >> if you think about, again, the analogy, the crisis, people stopped buying swiss made mechanical watch, but you still got, you know, the rolexes in the world so ten years later, 20 years later, the car will be like a status symbol very top end still be ferraris and lambeaus, but your day to day transportation needs going to be met by something that drives by itself. >> we follow it closely here as well, especially given tesla, how soon, especially given the recent moves in the chinese market, do you believe robotaxis will be significant in terms of

their numbers in china >> look at the chinese markets, obviously, it's quite different from the u.s., right in china, general consumers need and want autonomous driving or the aided system seems to be a little bit ahead from the rest of the world we just launched a vehicle on the 27th of february, you know, standardized equipped with lida which gives the customers goods and sells like hot cakes the customers over there to believe in the future. >> you are the cfo, pertinent question to ask about gross margins. your s-1, these are older numbers, but gross margins have declined, gross profit margins as sales have increased. what are you targeting >> yeah. so, obviously, look data fluctuates a little bit. seasonality involved, but if you look at full year 3, cross

margin like 15%, 1-5 it's much more closer to tesla versus my other listed chinese peers. we were able to pull that off simply because we are offering a very, very competitive product, you know, the best seller because number one is a car we introduced back in the february, i'm sorry in april of '21 and we start delivering them in october '21 and we're selling that particular vehicle for three years and by the end of last year we're still pulling off 6, 7,000 vehicles a month and now, you know, as i mentioned earlier, late february this year, we refresh it, added more functionalities, better specs, 100 volt drive trend into the car and sells again. last month we sell more than 10k. a car that starts selling price 269,000. we do believe if you have a

very, very good competitive and very, you know, unique and differentiated product if it's good you're going to buy it. >> right and you're not worried about the chinese consumer, particularly at that price point, how would you characterize them? >> you know, they're still -- especially if you look at customers there's still lots of buying power in that particular price bracket and look, for example, my german competitors are offering, they're a little bit like know kia phones you sit in this, you know it's a volkswagon, just with a different drive train. our customers, they want something different. they wand android or iphone. that's why we've been able to pull it off. >> we appreciate you stopping by congrats on the ipo. we'll be watching it today. >> thank you very much. >> you're welcome. >> coming up, disney plus, jumping into live sports for the first time next week caitlin clark's first game of

the wnba season ahead of the action more on the money pouring into live sports, live sports economy, goldman's heaofd sports and entertainment joins us next. don't go away. old school hard work meets bold new thinking. (laughter) at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley. when it comes to investing, we live in uncertain times. some assets can evaporate at the click of a button. others can deflate with a single policy change. savvy investors know that gold has stood the test of time as a reliable real asset. so how do you invest in gold? sandstorm gold royalties is a publicly traded company offering a diversified portfolio of mining royalties in one simple investment.

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more investors turning to major sports leagues for opportunities. private equity, transforming sports franchise ownership a space once dominated by high net worth individuals. goldman sachs getting into the game launching its own sports an entertainment division last year to advise pro athletes and private investors adding to the growing investor in women's leagues with caitlin clark's first wnba season tipping off on tuesday. it is a rapidly growing space. joining us to talk about all that is goldman sachs' head of sports and entertainment. >> thank you happy to be here. >> coach dawn staley was sitting in this very chair a few weeks ago. >> lucky me. >> and we were talking about whether or not the flow of money is going to change the way leagues, media entities, prioritize women's sports?

i assume you think that's a no brainer? >> i think it's a no-brainer, and the reason for that is, if you look at the media rights, which is the hallmark of how valuations are formed and how investors think about growth, it's pretty extraordinary. in sports, live sports in particular, it's one of the few things that actually bring us all together, and where people will be very committed to engaging in a live way my mother-in-law wakes up at 3:00 a.m. to watch coco gauff play tennis in australia and that happens across the globe, and that translates into some of these media rights contracts we're seeing the nba, for example, a $76 billion media rights contract that they're looking at over an 11-year period, the nfl, $110 billion, over an 11-year period they did in 2021 for women's sports for the wnba, it's $60 million is their current contract and so if we think about that contract which expires next

wear, and consider for the national women's soccer league the fact that they recently had signed a 240 plus billion dollar contract over four years, it was actually more than 40 times their prior deal, i think the trend is following the enthusiasm we're seeing in women's sports >> people have been predicting that media rights pie can't keep growing as fast as it has for this long. more buyers in there, but is that going to mean that it's really going to compete, the numbers higher, or we are going to fragment the packages and everyone gets their piece? as you think about what the pool of total kind of rights money is out there, is it ever going to max out? >> i mean our colleagues in the investment banking area that do a lot of the analysis believe we've got more to go there is, in addition to having the major league, there are a lot of these emerging sports that people are looking at as well our clients, who range from individual investors, athletes, entertainers to entrepreneurs,

business owners, they're all looking at this space to see how they might do more, how they can get exposure they're certainly spending more time thinking about women's sports i do think that trend feels like it's moving higher i don't know if that will be felt consistently across all sports, but we're consistently sports but in women's sports in particular. >> what are emerging sports we would be considering when you say that >> it gets pretty broad. >> don't say pickleball. >> i won't say pickleball. that would have been something to say last year it includes everything from lacrosse to rugby to professional bull riding i mean, a little bit of the question is, the increase in growth versus where the sports are now. so, even if it's a smaller market, if we see upside potential versus the rapid growth that let so many investors to look at this space, the charlotte hornets, those transactions, $275 million

investment, michael jordan in a consortium transaction sold for $3 million, those sort of numbers, i think, will continue to keep our clients interested in asking. most of our clients look at investing and sports through diversified funds. for those clients who are thinking about making more directional bets, these emerging sports are an area we're seeing a lot of interest in volleyball would be another. >> yeah, i can imagine that. >> and olympics usually gives it a little booster shot every couple of years. we hope you'll come back to maybe talk soccer and f1, and we could go on for a while. >> lots to talk about. >> thank you very much >> my pleasure still ahead, a look at the gold rush of younger investors piling into one red hot commodity. r rye going to live it a myste fothe moment and talk about it on the other side of this break. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?!

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allocation to gold at 17% relative to baby boomers, 10% according to state street. part of this is an interest in the physical asset that retains value like gold bars costco has been selling out of. this 20-year-old bought her first gold bar two years ago at td bank and she's been buying ever since as part of a balanced portfolio. >> there needs to be a way to secure the value of funds and that's why i was like, let me go buy gold because i know for sure it's not a short-term game, it is a long-term way of storing value. i don't increase and get emotional about my purchases again, as long as it's 10% of my portfolio, i'm okay with it. if it does amazing, if it goes down, i'm not affected because i've already hedged against other thing. >> the 37-year-old mark meyer is a precious metals reseller and dealer he says younger buyers' concern

is distress of the dollar. he owns gold bars and coins as well as gold mining stocks and silver all told makes up about a quarter of his investment portfolio, which also includes crypto gold stocks up double digits with 69% of millenials saying the best way to invest in gold is through etfs. guys >> i wonder if this has something to do with when people came of age and what was going on the financial crisis is a defining idea and the idea the system is less secure than people thought and people treating gold and now as analog bitcoin. >> that's right. i think it is the perception that you want to move away from something that isn't exposed to geopolitical headwinds right now we have two wars going on, rampant inflation so young investors are looking for something they can understand, that has tangible value. i think as gold has gone higher and hit record high, it

increased the buying and awareness and so everyone jumps on the band wagon. you have to wonder if institutional investors and bigger buyers will get out and retail investors will maybe have a little more exposure to the downside. >> pippa, thank you. as we have a mixed market right now. the s&p eking out small gains with the nasdaq down a quarter of 1%. our market coverage overall will continue right after this. with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley we put our heart into celebrating moms. we are local farmers, bakers, florists and makers who grow and create with a passion. 1-800 flowers. for mom, with love.

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good friday morning. welcome to "money movers." i'm carl quintanilla with melissa lee. today citi's chief global economist nathan sheets is with us we'll talk about whether or not we'll get fewer rate cuts, financial risks in china. nuclear energy spac by sam altman completing its merger the ceo is with us at post 9 for nyse debut. european stocks surging to new all-time highs we'll look at how u.s. investors might want to play that overseas