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N's 3925 guaranteed rate applies a monthly service charge for new customers on qualifying internet bundle, excluding taxes and fees. Other restrictions apply. Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street. Good Friday morning. Welcome to Squawk on the Street. I'm Sarah Eisen with Jim Kramer. At post nine of the New York Stock Exchange, Carl and David have the morning off. Taking a look at futures. We've had a losing streak end of the year, beginning of the year. Let's see if it changes today. Checked out futures of 122, S&P futures of 16, Navvex futures up 67. We started higher yesterday, faded all the way into the close. We'll see if it holds today. Our roadmap begins with stocks searching for direction after that December pullback. Why one strategist is warning this morning of a correction ahead? Plus shares of U.S. deal falling as President Biden does block the $14 billion sale of the company to Japan's Nippon Steel on national security ground and a cancer warning. There's a spirit maker is under pressure, the U.S. Surgeon General calling for new labels warning of significant health risks. We're going to hit it all, but begin with the market to stock looks to reverse their recent slide, Jim, which I know is disappointing way to start the new year. We've now fallen for five straight sessions for the S&P and the NASDAQ, longest losing streaks since April. Look, I think that in many ways, people expect the things to be great. And then those last week, after we've been down, the market was oversold, it was a little surprising. I kept hearing, well, maybe one or two large funds were taking profits. That's going to not the case. Something bigger going on. And what I think is bigger going on is that when I look at the kind of things that you're seeing from a beautiful bank of a market piece this morning about how strong the market has been, momentum growth in mega caps, people like to take profits on those. And I don't blame them. I think that if you don't take profits after you're up huge, you're not, you're being too greedy. That's just some very common sense of cool. So you don't think it's anything fundamentally that's changed that would make you question the strength of the market? Well, look, I mean, as we get closer to the inauguration, I think there are people who are skittish. But no, I don't think so. I think things are pretty good. I saw your reasons for optimism. You gave pen last night on that money. Look, I think that all we ever hear is the reasons I find there are many people come on here. And they have multiple reasons why we should not do well. Including this, we've been up for two years, so therefore we can't be up for two years. None of these things really play a role because we've never had anything like the Magnificent Seven before. We've never had stocks that are like one third of the market. We also had very few groups that were actually bad. It's kind of a halcyon time because I think we don't have enough equity. I think in another time, when we used to have much more bullish media commentary, really post-2000 people were trade. But before that, I think we would have seen the dearth of equities. There's just not enough stock. And I think that the markets driven by supply and demand, as you know, and we don't have a lot of supply. We got pretty good demand. Especially if we get more M&A, to your point yesterday. That would really be something. Look, it's hard to kind of figure out exactly how much of the rally in MAG-7 was just S&P money coming in. Because we don't think of this, that we think of these stocks as somehow separate. Or not. I do think that if we have M&A and we don't have a lot of big deals, then what happens? Well, then we're really going to be short equity. But it's such a bullish thesis. People are afraid to give it. All right. I'm not going to look at it. Somebody couches. It's like, look, it could be good, but you know what? It could be bad. That's worthless. Because the market always has to climb. Your jumper may not be in the play. Well, it's good. It could be good. I don't want to do that. I think in the playhouse, though, right? Well, that's why I mentioned it. Because I knew you are from Cincinnati. You can't just pee. Wow. So you finally got on your gas. I was hoping you'd do that. I tested you in the first three minutes. But I do think that what's happened is that we're also used to people coming on and not talking about this earth of equity and not talking about the fact that M&A takes stock out. I mean, look, I don't know if you're watching this. There's a surprise piece by TV Cowan today. Comcast and charter agree on a cable merger. All right. Well, let's take some stock out in an area that has been pathetic. Well, the question is, under new FTC, Lena Khan goes, Trump administration comes in. Yeah. How friendly will they be toward deals? I guess the thinking of it will be friendlier than her no matter what. Yeah. I mean, against everything. Absolutely. There's a stock app loving. And I'm using that as you see, I was the number one stock in the S&P. 700, you know, Google has come in against them. But I think Google has already, was so in the crosshairs of Jonathan Canner, whom I regard as a little more reasonable than me to come, and also had done homework, which I think is a very good thing, was addicted to rigor. I think rigor is good versus this kind of dogmatic ideological capture of the FTC. That, by the way, did terrible things for President Biden, but I don't think he was aware of what was happening. Yeah. Speaking of, you know, I just don't think he was aware. That's OK. We'll talk about Nippon Steel in just a moment on that because there's right on their today. Right. Very small company that we all talk about. But just on the broader market. Sure. But there are some things that are happening, which might give equity bull's paws. Yields are near the highs that we've seen. Oh, OK. You know what? Well, I mean, let's go five and a half is where I give work. Nice. Well, we're not there. We're four and a half. But I mean, I got to spend too much time making big money in the 90s when the question was how high the yields are. But Jim, I mean, mortgage rates are back up to seven percent. That's how it impacts people. OK. So you look at it at a home cycle. And the cycle is rates get too high. People start cutting the price at home. When that happens, the buyers then step aside, because they're going to say, listen, I'll buy a house and be down immediately, then sellers panic, cut their price, and then buyers come in. That's called the housing cycle. It's been completely distorted in the last two years because of the way that they did. Right. And because of the loan mortgages. But that's the that's the classic housing cycle. It's always been the classic housing cycle. And it's going to return. So I'm not as concerned about housing. I do wish that there was more housing being built. But we know that a lot of that has to do with environmental regulation. So you're not worried about rates? What about the dollar? Because the dollar is strengthening. I don't care. We always-- It cuts in earnings. It cuts in earnings. And you have to look at why it's strengthening so much strengthening because the Fed is thought to not have to cut rates a lot. That's good. Right. However, everybody else is still going to cut rates. I say, I have a solution. I have a solution to this. Booked the trip to Canada. Yeah. Being cooler. Getting cheaper. I mean it was 20% from last year when it was too expensive. But the trip to anywhere. It's a Ryan Reynolds trip. I admit that. Because I think he's the greatest person on earth. You have to know what how he's going to-- He's very successful. Yes. Yes. I'm just checking there. So the other big story is China. And China started in a sour mood when it comes to stocks. Their bond yields are at record lows. Right. They're talking about traditional monetary policy. They're going casey. Do they have any idea what they're doing? Honestly, we presume that when they are able to hack the Treasury Department, which was the disgraceful of our part, that somehow they know what they're doing. I mean, do you know that they have everything involving TikTok? That's what they got. That's a lot. They have a lot of TikTok discussions. More than 300 million discussions. And the reason why they got it, just so you know, because it's been a lot of time this yesterday, is they have not updated their systems to Treasury, they've got some mismatch with different things. They need to have one system coming in. They didn't do that. A lot of us, because the continuing budget resolution, they just didn't have the money to make it so they could stop it. And it's been in the cracks. They have everything. The Chinese have everything. So do you think that President Trump is going to sit back and say, you know what? President-Alex Trump. Oh. President-Alex Trump. Well, that's present. We should just make a good deal with China. Now they've stolen everything. No, I think the US has a lot of leverage in this relationship. And they should do- Well, let me ask some questions about China. Yes. How big do you think the problem is versus the resolution trust of 1991? I think that the problem is bigger even than people think it is, because we don't know the full story. And I do listen to people like Kyle Bass, and I know he's been very negative on China. But the truth is, I mean, look at their- if you tried to make money in their market over a long time period, you could not do that in the equity market. And they've tried a lot on the monetary side. Remember at the end of last year when Tepper was so bullish on China, and people were excited- Yeah. Monetary. Monetary. Policy. But Zuka was finally coming out. Yes, this is a great show. And then it totally faded in terms of the sentiment, because I think people realize problems are deep in the property market, and there's a massive deleveraging that needs to go on. Ray Dalio writes a lot about that. And they're not doing fiscal stimulus. They're not stimulating their consumer. No. They just continue to do the supply side thing. And it's not working. No. And yet no one ever talks about what could happen if they have food shortages. No. And then you would have a revolution. Right. And no one's talking about that. It reminds me, by the way- There's a reason they're not allowed to talk about that. Oh, I've just talked about that. Never lies of others in East Germany, in the end they had 10% suicide. I mean, there are no totalitarian governments that are immune from what could happen. And I think that they should be thinking about that, not thinking about whether they should cut rates to one. They need to be thinking about how to stop the revolution if things get out of control of it. Well, I think they do think about that. It's where they censor. What they really need to do, and what they're doing in the best way to stop that is give it the PLA all the money, and do something outrageous militarily. One thing that they actually are doing is they're letting their currency fall. Yes. We're below 7.3 on the yuan, and that is the thing that they don't sell. They were defending that for a long time. And the thinking is that it's going to be worse under Trump. I know. They can't make strain there. I mean, I think that, look, if I were running China, which I'm most certainly not, I would be doing these act opposite. I'd be trying to figure out a way to make it so that some deals could be made. And I'd say, listen, we've hacked too much. But they're addicted to hacking. I mean, honestly, the hacking that's going on right now is absurd. But they do not, of course. But I do think that they have the possibility to reverse things, and I think it's a seven to eight trillion dollar problem in real estate. That's a huge problem. That's a huge problem. I don't want to take that kind of pain. Why do you think that we still regard them as an important because of trade, because of number of people? Why are they so important? Because we are interconnected, economically. Because we could just be granular and say, well, listen, there's two reports today about Apple, and that the fulcrum for Apple is China. The material stocks are all horrendous, worse performing group. It's China. Medical equipment, not doing well. China. Water. China. China. China. China. China. China. China. China. China. China. China. China. China. China. China. China. China. China. China. China. China. China. What we did here were companies that said, you know what? We're out of here, except for one company that's been one of the best performers in the world. But you need to do that. You can do that. You can do that. You need it to do it. But the whole decoupling. Do you think that's possible? Yes. Really? Yes, I do. I think that if the Chinese persist in making it so that every single part of our government is hacked, then I think that President-elect Trump is not like other presidents. I think he just puts a gigantic tariff on China. It's his best of luck. But we'll see. I mean, that is the expectation. Speaking of China, we should hit the steel deal because shares of U.S. steel are down sharply from market. President Biden now officially coming out and blocking Japan's Nipon steel from acquiring the company saying in part quote, "Today's action reflects my unflinching commitment to utilize all authorities available to me as president to defend U.S. national security, including by ensuring that American companies continue to play a central role in sectors that are critical for our national security." Remember, this comes after Siphias, which is the committee inside Treasury that decides on deals based on national security grounds, with split on whether this deal should go through. Right. So then it was punted to the president. He had 15 days to make a decision. We knew he was against it. He's been publicly against it, now officially against it. I expect there to be legal action by the company Nipon and U.S. steel because they are determined to make this happen. And I don't think it says clear cut when it comes to the geopolitical national security. No. Okay. There were 100,000 people involved in the steel industry, it's minuscule. The president historically had very bad relations with almost everyone in business. You can talk to any business. They never got to speak to him because he always thought it was bad optics. New Corps is being decimated by Chinese dumping through Mexico. If you wanted to do something to preserve the steel industry, you would stop Mexican dumping by China, Trans shipment. But no, instead they do this, even though Nipon still guaranteed a level of production. Because of dollars of investment in the United States, keeping the headquarters in Pittsburgh. I mean, they've been. No, no. They were doing anything. And if you're going to argue it on national security, you know, U.S. steel and Nipon steel say Japan is one of the closest allies. This is what French whoring is all about. Let's stand up to China and they're dumping of steel. Well, they just, this is one of the, it's, it is just optics. I mean, because it's called U.S. steel. I mean, it's, to me, it's also runs through the swing statement. You know, it just makes no economic sense whatsoever. And Hyman Roth was more accurate about what to do with U.S. steel than President Biden. I think the question is if it does, if, look, I think if there, if there's legal challenges and it goes to the courts and ultimately to the next administration, what will Trump do? Because he has also publicly come out against the deal. He feels the same way. But we wanted to defer to President, Vice President-elect Vance, who in hillbilly elegy talks about the notion of the Japanese steel companies and what they can do to decimate America. So he obviously has a different view. But it's an old school. It's an old school. I agree. Let's go. Let's look at new core steel. Go back to your point. Doesn't that show that there's something has to be done to preserve U.S. steel? Let's, let's talk, let's talk to Lure, to Lorenzo. Gonsam. He doesn't want anybody. Yes. Well, no, and he has our views. He wants the Americans. If he hadn't done the steel, the steel go in Canada, maybe he would come back and buy this, for Cleveland Cliffs, but I just think that this was just a so wrong headed on so many different levels. By the way, does President Biden know the election happen and he doesn't need Pennsylvania anymore? I mean, Pennsylvania is very important. Now it's no more important than Pennsylvania, right before you get to the go on a monopoly board. I think that he considers himself a very pro-union president. He feels like a member of the union. Remember what he said to you. Remember what he said to you. Remember what he said to you. Before, there you go. That was a real good idea. I do wonder how many of the unions voted for him. And union members voted for him. Where did the teamsters come down? Right. Exactly. They didn't. R of K Jr's father had a, do you know, he had to get off the squad? No. His father, when he was running justice, said, let's just have a running at teamsters. I think the point, I think I do wonder if there's potential for a president-elect Trump to make a deal with the unions if this deal should go through it. He's the union president. He turned out that it didn't matter. Right. Unlike Biden. He does listen. I mean, he's taking meetings with all his CEOs. Oh, no. He really does. And he's talking to, I think, a lot of members of industry that have a lot at stake here, including, he made a deal with Massasan, who I, not necessarily in DePont Steel, but shows, I think, the closeness of Japan and the investment potential in this country. Well, look, I think that Japan is one of our great allies, and that's why the point that you said. Like, why don't we just go after our ally? I don't like the fact that President-elect Trump is going after Mexico. I mean, at Canada, the federal capital of the world, Canada. I think the security of the border was one of his primary... The commanding security of the border? I invoke Ryan Reynolds again. Again, we don't know if he's actually going to impose tariffs on Canada and Mexico. No. Well, how do you impose tariff on a 51st day? And also one that you made a trade deal with, the US and CIA. Oh, no, no. I mean, that's what you did. You've got to rethink that. At the certain general attacking beer, the best beer is made in Mexico. When we're trying to figure out how to make... I posit that Mexican beer should be made in Toledo, Ohio, but now that I'm with my partner of Cincinnati, I think that... They pay a lower tax rate. The things that I've covered. Rural is shores of what? The Cincinnati Bay... What does it pay there? The... It's the Ohio River. The Ohio River. The Ohio River. The Ohio River. That's where I want my mix. That's where I want my modello from. There you go. I tell it. Let me tell you something. That is weird. You don't want it. No, you don't want modello from there. Bring it to Ohio. Cleveland, Corona. Right, there we go. I love that a lot. When we return a follow-up on Tesla, one day after its delivery numbers disappointed the street, getting a lot of love from analysts this morning. Oh, but can you believe it? Raising price targets after the decline? Well, how about Starlink? Yes, I know you're excited about Starlink. I am talking... You're a... Oh my! It's been... I saved like so much over current cable providers. It's been a game changer. Let's look at futures. They're higher, pointed to a higher start. We'll see if it holds. That's in future. It's up 23. More squawk on the street. Stay the head. At United Rentals, we're helping connect the worksite. Our worksite performance solutions make it possible to manage who has access to your site and equipment and receive insights that help you monitor safety, productivity and sustainability to help manage your worksite from anywhere. Our worksite performance solutions connect people, equipment and data. For a more connected worksite, visit unitedrentals.com. United Rentals. Work. United. Building a business may feel like a big jump, but on deck small business loans can help keep you afloat. With lines of credit up to $100,000 in term loans up to $250,000, on deck lets you choose the loan that's right for your business. As a top rated online small business lender, on deck's team of loan advisors can help you find the right business loan to fit your needs. Get on deck.com for more information. Depending on certain loan attributes, your business loan may be issued by On Deck or Celtic Bank. On Deck does not lend in North Dakota all loans and amounts subject to lender approval. I'm Elliot Kalen and I cannot wait to tell you all about the new podcast I'm hosting for Smartless Media. It's called Smartless Presents Clueless, a bite sized twice weekly game show with a different main game and cliffhanger puzzle every single episode and all this season. The contestant will always be Sean Hayes, that's the Clueless Promise. Since you never know what the game will be, you won't want to miss a single episode. Listen and follow wherever you get your podcasts. Time now for Kramer's Mad Dash as we count down to the opening bell. What we saw the Surgeon General's linking cancer from Alco, I think maybe something else we have to study, is a no business school report about GOP dash ones showing in the United States. And what's incredible here is that the decreases in certain foods, 11% decline in savory snacks by wealthy people and it directly points out that they think that the declines in Campbells and Kraft Heinz were clearly related to this and I think that those obviously disastrous and I think that what we have to pay attention to is that there are major consumption habits that are changing and particularly they're focused on chips, they're focused on cookies. But this matters and it matters because it's going to hurt even the great purveyors of food. For instance, Walmart's mentioned here as maybe a company that could be hurt. Now, again, I think that in the end, Walmart's a secular winner so I don't want to say anything bad about Walmart. I would send people the wrong way but I do think that we have to follow this. This is a unlike the Surgeon General's which is a little more hypothetical. This is happening right now. It's happening right now. You know, there was a bit of a freak out on these stocks around GLP1. It turned out to be right. And well, and then they recovered because all the CEOs came out and said, "Look, even the worst case scenario, it wouldn't have that much of an impact." Well, they're talking about any snack and they have to change the way people create snacks and whatever. Whatever, all I can tell you, the companies that made junk food, they're going to be under assault from RFK Jr. and from the consumer itself. So I think that you've got to stay away from those stocks. They're valued traps, Sarah. Or they pivot, which is hard for them to do. It's very important. All right, opening bell just moments away, stay with them. Building a business may feel like a big jump, but on deck small business loans can help keep you afloat. With lines of credit up to $100,000 in term loans up to $250,000, on deck lets you choose the loan that's right for your business. As a top-rated online small business lender, on deck's team of loan advisors can help you find the right business loan to fit your needs. Visit ondeck.com for more information. Depending on certain loan attributes, your business loan may be issued by on deck or simply bank, on deck does not lend to North Dakota all loans and amount subject to lender approval. I'm Elliot Kaylin and I cannot wait to tell you all about the new podcast I'm hosting for Smart List Media. It's called "Smart List Presents Clueless, a bite-sized, twice-weekly game show with a different main game, cliffhanger puzzle, every single episode, and all this season. End of episode, listen and follow wherever you get your podcast." Hey, I guess this robot set our program so well that they can do the work of five people which can run a monster wave of wage inflation from Trump's proposed deportations. Robots will place people in restaurants, retail, home building, transportation, they'll be unloaded in the trucks, medicine, insurance, credit card, call centers, sounds harsh, but Trump won the election running on a hard deportation policy. Assuming he pushes that through, will you either have massive wage inflation or widespread automation? I prefer the latter. Jim had bad money last night naming AI, robots, improved productivity among the things that could go right for markets in 2025 and you and I were just talking, it's an exciting time. I think that Monday night we'll be excited. That's when Jensen Long is his CES speech. I am told that there will be actual breakthroughs announced, use cases that will dazzle us. By the way, the robot as taking the place of five workers is an actual said ex depot unloading a large factor tail. They are ready. I think Jensen is going to shock people and I think that some of the interviews as we're going to see into the bell has to do with what Jensen's going to be saying Monday. You've been right? It's very, very important. Still buying video after two trillion dollars. No, I just, look at it. Wait. I mean, let's wait. It is very sloppy here. All right. We're opening up to your point, opening bells in the CNBC real time exchange here at the bid board, professional bull riders league and the Austin gamblers team celebrating their 2024 PVR team championship. It's about time. Look at this. A lot of cowboy hats here at the NADDAQ modern health, the workplace mental health platform. And I just want to add one more cause for optimism before even Jensen speech at CES on AI. They study in nature, they published results of a study that came out of Sweden, looking at AI, generative AI, outperforming traditional ultrasounds in detection of ovarian cancer. These are the kind of studies that we are waiting for as far as game changing results on Gen AI. We are not going back. Okay. And it has discovered an absolute incredible disparity in the discovery of columns when we do, when we do any sort of cancer testing, obviously, we're testing for colon cancer. That is so much better at finding colon cancer than the current one. And it's all generative AI. I think that matters. Smells in GE health care is used in Gen AI. It's not helping their sales. They're hurt by China. It's a stock that I own for our travel trust and it's been poorly performing. And I think you have to talk about the good ones and the bad ones. Right. No, but I mean in a world where there's apparently a shortage of ultrasound techs, if you can get this from Gen AI, unbelievable. Watch Medtronic. People don't care for the stock of Medtronic. They think that Medtronic is just a sleepy company. They all want Boston scientific and Boston scientific. No, Jeff Martha told me I had to get AI powered colonoscopies. Well, that's the point. And that's the Medtronic. It's supposed to ask, Medtronic is saying you should ask for Medtronic. Now that's kind of similar to what RFK doesn't like about the drug ads. Yes, there was a big piece of the Wall Street Journal about, first of all, whether he would even have the power to outright ban drug ads. You can only imagine the fight over the First Amendment, but if he is successful in pressuring drug companies to stop advertising or be even more transparent about advertising, what that could mean for some of the cable companies and new companies that depend heavily. I knew you had to bring it. Make it personal. Well, I mean, that's what the article was about, but depend heavily on these ads. Well, I find when I listen to the side effects, I'm not as inclined to get the drug as when otherwise. Long list of side effects. Yeah, the side effects last for almost the entire commercial break in the NFL. Add these, Skyrese, the anti-inflammatories, $400 million in linear TV ads last year and as you watch. You see the numbers? 300 million for no more. The numbers for them and of course what's really driving Skyrese is Botox for people who take GOP tests. 30.7% of ad minutes across evening news programs on ABC, CBS, CNN, Fox News and MSNBC and NBC. We're related to prescription drug grants. I know it's incredible. And look, we have to, we watch, I find if you watch NFL ads, you really do get it. Very good. Those ads, by the way, are working versus even Internet ads. One of the things is this pointing about YouTube in the fourth quarter of major football games. You put up Zen pictures of things like cakes. Now I would like to root pour out does not watch the show as much as I like her, but it's time to put some Budweiser ads in there and I don't mean Budweiser late to a particular illness. Ben ads of cakes? Yes. It's like the new Meghan Markle show on Netflix for some ads of cake. Markets opening here nicely. Every sector is higher. Yes, and it's back. Seven. How do you like that? Communication services, consumer discretionary technology. Oh, see there. That's what I mean. I think you brought that up. Remember I said at the beginning of the show, listen, this stuff is doing well, could just continue to do well. Well, there they are. Those are the leaders, because there's nothing new, take, why don't you put up consolation energy versus consolation brands? There's nothing new. There's something new with consolation energy, right? Constellation. But in those stocks, you know those stocks were overdone. You know that you can't just throw up a nuclear power plant even if you have the sighting. It just doesn't work like that. We know that from Southern. The small form nuclear reactor in Canada that's being built, well, I mean, these things just don't come together the way they should versus a natural gas plant, which we could put up in the same time that you're watching NFL commercials, and this has come up. Nuclear has been built to capture the imagination after 300% gain last year. It's all retail, and we do not distinguish enough on our program to retail buying, which they love quantum computing. They love nuclear. By the way, quantum computing is real. Willow, the initiative of Google, is really-- A lot of people think this is what's going to be a breakout year. Well, no, it's too early. From people I know who have studied it, it's going to happen. The cryogenic makes sense because it doesn't burn hot. We know that Jensen on Monday night, when he speaks, has to address the heat issue more than they have. The heat issue is just, the heat issue and the crisis that we have for people, regular utility payers, are going to be at a war with the data centers this year, because the data centers are going to jack up at the cost of our electricity, and so that's a big theme that I'm going to have for 2025. So you say away from constellation energy? So you say away from constellation energy. By the way, payers? No, I'm saying because of retail. More than a billion dollars of electricity. Right, billion dollars. Well, that's fine. Well, they need like, I'm a tenderly, what it matters to me is that we need to recognize that that's a different kind of buyer from a buyer who might be buying a major stock in an institution. Institutional buying, not happening right now in constellation. Individual buying in quantum, the quantum feels very much like charging stations, not that long ago, and that's what's happening is they're back. And they buy Reghetti, even though Reghetti was in $2 in November, these companies, by the way, collectively probably have 40 million dollars of sales. I was coming over to the sales numbers for the companies that are constantly trading in the crawl. I like to watch the crawl to see what people are buying. And holy cow. Well, even, you know, Ryan is back, the meme star with Unity Software shooting up yesterday after he put out some meat mover, Dave Chappelle, a true value added there. I do wonder. Well, a lot of the analysts have pushed back on the carbana, the bearish takedown. Yes. The nature talk more. The nature talk about the hinterberg, I thought he should have talked more about Apollo's saving. The Apollo buy is what made things work. Well, you didn't talk about that because he talked about all the reasons not to. Right. I mean, I have the love needs work. I think it's driven. Interestingly, there's a sort of a delayed reaction. Nirvana is down seven and a half percent today. Well, I don't think there was anything all that new other than that related party that we didn't know who, that had been buying some of the loans. My problem with the autos, I think it's just a really bad sector. I mean, I think even GM got clocked yesterday. The auto sector is the worst sector in the market of the materials. Well, that brings us to Tesla and the delivery and what we'll look for. Right. Well, that's the question. Is it auto? No, it's tech. Yes. Right. It's tech. That's another retail stock with, you know, you've got a mezionic group of people who come on our network and talk about it and obviously individuals who believe that and that's what drives Tesla, messianics. But do you care that it sold fewer cars in 2024 than it did the year before? What do I think it's going to go up like this? Yeah. Do you think it keeps going up? Yeah. Because it's about taxis and energy storage. Look, I believe that it's must year in part because I think that he's close to the president, the president of President-elect and a lot of this stuff, I mean, hate him to like him. A lot of this stuff is just smarter than everybody else's. I feel like the China numbers, they were viewed as being bad. They weren't so bad. The China core had a high surprise target to 404 from 298. Did you read that piece? Did you read that piece? I'm going to talk to him next in the money movers, generational set of growth opportunities ahead. Why? Why? Why? Because it starts off by saying to downgrade or not to downgrade, that was the question. What is it? I suffer the slings and arrows of outrageous fortune. I mean, hey, Shakespeare. Why should we hear Shakespeare? You don't like it with the analysts, go Shakespeare? You know what? It's just the same old. I mean, get me, you know, stop it with the handler. I'm up in a little more obscure stuff. Who is Sylvia? What is she? I mean, the one thing is they target, they rate, which one is that? Which one is that? I don't know. The pound of the fast, I'll have my bond for heaven's sake. Which one is that? I don't know. I don't know. I made summers and that's nice. That was my favorite. That was the one I... Not bad. Yeah, but that's a comedy. You can quote that one. I like the history. All day long. 404 is not so much upside. Goldman keeps their neutral rating, 345 price targets as the weakness in Europe is offset by China. Europe was bad. Europe was bad. But, look, I think that maybe we hear something on Monday from Jensen Wong about the brain, the three brains. Remember, there's the training. You have to do training, of course, for Tesla, right? And you have inference. That's going to matter. And you've got recognition, so to speak. Simulation recognition. Wells Fargo kept an under-rate rating, $125 price target, which has been dead wrong. It says, "The high financing incentives are not a not a not a ten." I think that that's a shame. That's a shame how wrong. Look at Reddit. Where are you? Reddit. God, Reddit never quits. I'm looking at stocks that people are excited about, because I think the individual is back, but not one of the stocks that we talk about. This is not Sherwin Williams. No. But it's maybe happening. Palantir. Vistro. Palantir is... Palantir is an appeal to individuals. Alex Karp, Philadelphia bad boy, did not throw snowballs at Santa Claus, let alone batteries. But he's a Philadelphia bad boy. And people love him. Because he's exciting. He attacks his institution. He speaks his mind and he tells the truth. Yes. Yes. He tells me the power. And he has perfect power. He does. But how are his real numbers versus say, crowd strength. But they also have pretty incredible growth, both on the enterprise side and the government side. Look at that. That is a retail... My focus is retail moving stocks versus the big institutions that trade in and out. And I actually like retail and want to help them. I believe that you can continue to buy Palantir because Palantir understands procurement and Palantir understands how to do a deal with the defense department. I think they're going to surprise us and play a real role under President-elect Trump in getting defense costs. There are a lot of Palantir people who work for Alex Karp who are coming into the government. Right. Senator Teal, who is also founder of Palantir, heavy influence. Well, I don't want to be part of the so-called five families of defense that they talk about in a great position paper, which is amazing. I think Palantir is filled with brilliant people, even though I know Alex Karp, but it's not necessarily... He does not hang on everywhere, I say. Well... Because he's completely contemptuous of me. No, I don't know. But that really hurts my feelings. He should just go tell my mom, who died 45 years ago, but would be intrigued. He's from Philly. He's a beautiful problem with Alex. He went to Central High like my uncle, not just self-help partner. So we just talked about some of the winners. The biggest losers in the S&P, Brown Foreman, Bolson Corps. There we go. So now this is the... The Surgeon General, Brown Foreman, by the way, the mistake that they made was they put, well, first of all, the Browns are doing terribly. The queers are doing bad, the Browns are doing worse, but what really hurt them was that they put the money toward all these other Tennessee, honey, they didn't put the money toward Jack Daniels and they should have continued to put the money toward Jack Daniels and they would have done better. Diageo, I mean, I don't know. When you see Clooney's, when you see Tequila down the number, I mean, the numbers, they were down 18%. Constellations actually have good numbers, but nobody cares because they're worried about a tariff. Well, the problem is the health concerns now, and Vivek Murthy puts up, I think, so he basically calls for cancer warnings on alcohol. Well, then, he cites one from GOP-1s because you have no craving for alcohol if you take GOP-1s. Seven malignancies that he cites related to alcohol consumption including cancer. Alcohol is horrible for you. Now, my wife's in an alcohol business, so I'm cleaning centers. But I think that's why people are drinking, in part, don't you think, drinking younger people drinking? They're more lifestyle oriented. They prefer, obviously, they recognize how bad alcohol is, but then, again, alcohol can be social, alcohol, when used correctly, is not the sin that people think, but it is even one glass. No, this is depressing for someone like me. What? Likes to drink alcohol occasionally. I didn't pay you as a heavy drinker. I'm not a heavy drinker. Oh, okay. I'm sorry. But I like... Well, you pound them like that. You get home? Sarah pounds them. I didn't think you'd pound them. What do you like? What do you have? I do like my ads, but I just like the pitty, smoky scotch, just like... Okay, then, you should move over to my wife's mess cow. I do like smoky scotch. What do you like? The one. Do you like people like it? LaFroying. LaFroying? LaFroying, which one? The 10 of the 16. I like both. How about the Yamazaki? Ooh. Yeah, Yamazaki. Yamazaki. This is $2,000 a bottle. I don't go near that one. Anyway, away from that, let me just say that the alcohol stocks have been bad for so long that what could happen is that if you watch Brown Form at the bottom, that would be the one because it's got a good yield. And the brand Jack Daniels is still a pristine brand. By the way, the Coca-Cola, Jack and Coach, is not selling them, babe. What is it about Coca-Cola? Coca-Cola. Yeah, versus Pepsi. Yeah, versus Pepsi. So Coke has been winning versus Pepsi in the market, and that's because there's been some weakness in salty snacks. Well, that's... That brings me back to that study. The salty snacks are... I'm going to put them in the disaster category. But Ramon Legarta, the CEO of PepsiCo, attributes it to changes in economics. Look, and I think Ramon is trippic, he's changing the bag, changing the bag, making it a little bit more... He's actually putting more in the bag. He's giving you a better value. Well, because inflation has come down. Right. Cost inflation has come down a little bit. Exactly. And that has been the story of 2024. Question in 2025 is, look, Fredo has some of the best innovations and the best marketing out there. Yes, they do. Great. So... And all in all, I'd rather own... Which one? I want Sammy. Neither. Is that your point? No, I'm just saying that if you look at these fitness stocks, they're doing well. Once again, it's quantum, it's nuke, and it's mag. By the way, Consumer Staple just went negative on the session, but... You're going out for all of that. People are going to get the Cornell Star. They should. Look at Nvidia. Nvidia. I mean, that's the Jenson speech. And that's why the NASDAQ higher. How close about the power of video and blackwell? Can you imagine? You're excited for this. How long did it take for the current version of Jenson to read Moby Dick? How long? A half second. Wow. Yeah. Right? Well, blackwell. And say it's a man that would be... That's been a catalyst. Yeah. That's what Microsoft came from. Have you given that a... What was that? Read lately, Moby Dick holds up people. I haven't read Moby Dick. Yeah. You know, the blackwell. I use it. I'm reading Google Blackwell. I'm going to read Google Blackwell. All right. Before we had to break, let's just quickly show you what's happening with bonds. They've been a focal point for investors because we've seen higher yields with treasuries selling off. We are going to get PMI manufacturing report at the top of the hour. Yields are currently a little bit lower. Maybe that's giving some relief for stocks today. Yeah. The 10-year, 4.55, the two-year at 4.24. We'll be right back. Time now for stop trading, Jim. Well, one of my favorite companies is BlackRock, and they have an ETF for Bitcoin. They've showing declines, $330 million in Bitcoin, pulled out yesterday in Bitcoin. Three consecutive days with the decline. That is atypical, and I think that I like Bitcoin, and I think people should watch it, and maybe if they haven't bought it yet, they're going to get a chance. There you go. Do you think it's cooled off enough? No. I think you can go down a little more. I think 90 is the next, I think 90,000 is the next level, where I think people should buy something. My Bitcoin. I think it's a nice hedge because I'm back to the 36 trillion dollars. What has to work for Bitcoin to work? Is it the NASDAQ? Well, I think it is about animal spirits and younger people, and it's being driven by options on Robinhood. We don't talk about Robinhood enough. That's where younger people are. The big firms have all missed out on the younger people, and Robinhood, they'll stay with Robinhood forever. If you look at the chart, there's a stock that knows what the hell it's doing. 234% gain in the past 12 months, all of that. Because the company is very oriented toward the new investor, unfortunately, a lot of it is options, and I don't think even most options, of course, we know don't make money. I tweeted out a clip of myself yesterday talking, and 2013 about Bitcoin crashing below $200 because of volatility, and remember, there were... Well, I like Bitcoin. If it wasn't secure in this Japanese... Remember, we got a President-elect who likes Bitcoin, but I don't think it's by right here, but this was the first three-day period of outflow, so that could give you a chance to buy it lower. I mean, it is interesting that Bitcoin has rallied along with the U.S. dollar. Yes, it is, but I think it's... Hold a little bit as well. Look, I think that our Fed Chairman is right. It's a store-hold of value. I think it's a store-hold of value. You get to leave for younger people who realize that they're the ones who are going to have to pay the debt, and there isn't... Do you like buying Bitcoin over Bitcoin-related stocks like a MicroStrategy or Robinhood? I think that that should be a 40-act stock. That's an investment company. I don't like that. Robinhood has got too much option activity, but I do think the actual ETF that BlackRock or Fidelity offers are both really good. So Bitcoin, just by as expected, down to that? Yeah, and if you can't buy Ethereum as Michael Semblis' excellent piece put out yesterday about the outlook for JP Morgan, Ethereum use has plateaued and is going down. So you've got to stick with Bitcoin. The other ones, Gary Gensler of SEC Chair, was very against the others because many of them are, let's just say, ill-advised to buy. Yeah. Ill-advised. Like, Farcoin and all the others. Well, there's just... Yeah. Jim, what's on Mad Tonight? Will you be... It's too... Are you in your heavy drink phase by six? Yeah. Because I don't want you to... Now everyone has the wrong idea about me. Yeah, I think that was a... Yeah, I think that that was a sub-op of strategy to bring that up. I'm just saying, you know, a lot of people casually drink and they're depressing to read that it leads to cancer. You and my wife were drinking fresca. I like fresca. Okay. I have 25 questions for 2025 that I'm going to answer tonight, and I was thrilled to work with you today. It was very exciting. Very fun. Yeah. And don't forget. Shakespeare references an offer. Who said we're bigger than U.S. Steel? Nippon. No. I'm in Roth and Godfather. But that is an ongoing story. And we're going to see how you guys... No, it's a long way. Absolutely. There are 100,000 working steel. Any moment. Any moment. Yeah. Companies that have that many people. Tunk Jensen Wong, Monday Night. Radical. Okay. Radical. Got it. Jim, thank you. Have a good weekend. We'll see you later on Bad Money. Coming up and exclusive with the CEO of Turo. What's the car rental service whose app was used to book both the truck in the deadly New Orleans attack and a cyber truck that exploded in Las Vegas? Another hour of Squawk on the street coming right up. You've been listening to the opening hour of CNBC's Squawk on the Street. All opinions expressed by the Squawk on the Street participants are solely their opinions and do not reflect the opinions of CNBC, NBC, Universal, or their parent company or affiliates. And may have been previously disseminated by them on television, radio, internet, or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of an opinion. Such opinions are based upon information Squawk on the street participants consider reliable. But neither CNBC nor its affiliates and/or subsidiaries warrant its completeness or accuracy and it should not be relied upon as such. To view the full Squawk on the Street disclaimer, please visit cnbc.com/squawkonthestreetdisclaimer. Building a business may feel like a big jump, but on deck small business loans can help keep you afloat. With lines of credit up to $100,000 in term loans up to $250,000, on deck lets you choose the loan that's right for your business. As a top-rated online small business lender, on deck's team of loan advisors can help you find the right business loan to fit your needs. Visit on deck.com for more information. Depending on certain loan attributes, your business loan may be issued by on deck or Your Celtic Bank contact does not land in North Dakota, all loans and amounts object to lender approval. [BLANK_AUDIO]
With the S&P 500 and Nasdaq in the midst of 5-day losing streaks, Jim Cramer and Sara Eisen discussed stocks trying to recover from the recent pullback. Jim listed some positives that could lead to market gains in 2025. Also in focus: President Biden officially blocks Nippon Steel's planned acquisition of U.S. Steel, a look at why shares of Tesla are rebounding one day after its delivery numbers disappointed investors, shares of alcoholic beverage makers slide after the U.S. surgeon general called for cancer risk warning labels on those companies' products.
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