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Squawk on the Street

Stocks Hit Record Highs on Jobs Report, Nvidia and the "Green" Chips, Apple's Unlucky Seven. 3/8/24

Carl Quintanilla, Jim Cramer and David Faber discussed the S&P 500 and Nasdaq rising to fresh all-time highs following the release of the government's February employment report. What does it all mean for the Fed? The anchors explored the big moves in tech: Nvidia leading the chip sector's record run and narrowing the valuation gap with Apple -- which entered Friday's trading session with a seven-day losing streak. Also in focus: A bullish call on GE, Lilly's obesity drug rally takes a detour, a tale of two retailers, Broadcom vs. Marvell, TikTok ban talk, "State of the Union" speech reaction.

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Duration:
46m
Broadcast on:
08 Mar 2024
Audio Format:
mp3

Carl Quintanilla, Jim Cramer and David Faber discussed the S&P 500 and Nasdaq rising to fresh all-time highs following the release of the government's February employment report. What does it all mean for the Fed? The anchors explored the big moves in tech: Nvidia leading the chip sector's record run and narrowing the valuation gap with Apple -- which entered Friday's trading session with a seven-day losing streak. Also in focus: A bullish call on GE, Lilly's obesity drug rally takes a detour, a tale of two retailers, Broadcom vs. Marvell, TikTok ban talk, "State of the Union" speech reaction.

 

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At Morgan Stanley, old-school hard work meets bold new thinking. 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. To learn more, visit morganstandley.com/yus, and investing involves risk, Morgan Stanley Smith Barney, LLC. It's Jim Kramer here. You're listening to the opening bell on CNBC's Squawk on the Street. Don't miss a minute of the action. Good Friday morning. Welcome to Squawk on the Street. I'm Carl Kingston here with Jim Kramer, David Faber, a post-9 of the New York Stock Exchange Futures. Turn positive here is the jobs number for February. While a beat at 275 comes with big downward revisions in the highest unemployment rate in two years, 10-year drops to 404, and a June cut is fully priced in once again, a roadmap begins with that getting the Fed's attention, hiring still strong, but unemployment coming in higher than expected. What that means for the fate of rain cuts. Plus, of course, we're always keeping an eye on tech. For example, Apple shares. Can they stem what has been a seven-day slide? Chip stocks, though, continue to outperform. And the other big story, that weight loss boom, Novanor does scover-takes Tesla's market valuation. Meanwhile, Eli Lilly jabs of Hollywood for its ozempic craze. Let's begin with some market reaction to the jobs number, not just the headline and the unemployment at 3.9, Jim, but revisions taking about a third away the last couple of months. Yeah, I think that those of us who are used to the precision of artificial intelligence and the gender of our AI, and of course, cellular computing, are just in shock that there could be a number that's this far off. This is the kind of thing that Jensen Wong could solve with his eyes closed. It's a little embarrassing, but because why it's so important is that this takes away what was the hot number that made us have a great fret and took away, I would say, David, a spring rate cut, whatever. 3.9, we know that those numbers, they remind me of the Dow Jones average. It's a very interesting headline, but it's not really what's at the guts of this. But in a political year, what that says is, hey, look, the economy's slowing and maybe the Fed should have some pressure on it, especially at the last state of the union, which was about walking the picket line. But isn't this a good number from the market's perspective and/or from the economies? I mean, almost dare I say, goldy locks? No, I was going to say perfect. Yeah, it is funny, because you're still strong, the wage growth is not that big. You've got the revisions down to your point about sort of, you know, at least no overheating, so to speak. You're a Fed chief, you probably want to spend all your life trying to be able to have this economy. The economy, you know, call without a lot of inflation that has good growth. And I know I heard people this morning still talk about soft landing versus hard landing. It's very clear that those are, that's a false dichotomy for a man like Powell. Powell's not talking about landing, he's talking about having consistent growth. A lot of people getting jobs not being inflationary. If anyone's ever listened to him or read anything about this man, he is not about, I've got a cooling economy. He's about having an economy that's the greatest equal to the greatness of our country. And I think he's been slagged by pretty much everybody, and maybe that's where he's really happiest. There's the headline, really, the word's not far from enough confidence to cut. That's what got, at least the journals attention during the testimony yesterday. You know, I know that we had the full coverage, and other than Senator Warren, who was a firebrand, and kind of a Mary Lee Siegel back in time to like populist time. Other than that, I mean, geez, you know, David, I was able to catch, I think I caught maybe like a 45 minute nap. - Oh yeah, no, it's-- - I was tired, you know, I had done it an old nighter than a-- - Two days of Powell with all those politicians is two, two days too many as far as I'm concerned. - You know the alarm function on this thing? - Yeah. - Where if you wait, it comes on a second time? - That was really important because I think that there was a senator from Ohio, my will not mention, who once castigated me, he was really worth taking a nap through. Today he mentions his name, so I don't have to worry. 'Cause Sherrod Brown wouldn't know the difference, is he, I'm sorry, she's-- - Chairman Brown. - Chairman Brown. - But the guy, he's a book I read, and he buys some Howard Schultz? Vance? - Oh, he'll be the ideology guy. - I think that he, you know, he's got a bit of Faulkner in him. - Mm. - He ought to learn, you know, a little sentence. He's not a stream of consciousness, guy. - No, not like you, Jim. - Thank you. - You're welcome. - Speaking of, any other thoughts on the job's number four, we sort of move on to some of the thoughts, moving this point? - How about if you want to, maybe this is the number you've been looking for to buy the semi-conductors? - Everybody's been buying the semi-conductors. There's nothing to do with it. There are some people who are a little concerned about the momentum that we continue to see in some of these names. - Well, they should be, because even though the underlying fundamentals are strong, it's like, whoa. - No one's ever seen a stock. You come in in Morville, and I don't want to pick on Murphy, because he's really a good CEO. But the call was really downbeat, except for his one part of optical with AI. And the stock was down 10, and he finished it down four. Hot 10 in the middle of his conference school. They were a broad con. The stock was down 40. Then he mentioned that they're going to be 10 billion in AI. - Right. - In the next C&O, it's like boom. - Versus seven, five, prior. As Sienna was the other name earlier in the week, Jim, that talked about legacy, weakness, and enterprise, and telcos. - Well, look, that's just, the service provider telco business has gone away. Look, there's companies in that business, ATT, Verizon. They've spent their years trying to not have to spend any more money, and people keep waiting. It's a good dough situation. Don't look at the symbol. It's much more of a work of literature. But I like to keep him up these days. - No, I know. I'm okay, I'm my good dough. - Yeah, I'm all right. - Yeah, that's well, that will be. - I'm all right. - Not great. - But I just find that if you mention AI, this is the problem. If you mention AI within anywhere involving your company, it's just a license to have your stock go higher. And I think that David, that's what I think is, because we've had these times where I remember in 2000, when there were companies, great companies, companies like World Cup, they were doing fabulous things. - Yes, there were. - I would not in any way compare what we're seeing today with what ultimately was to a certain extent of their business fraud. - No, but I think that the, when I look at Everamuro's piece on Senator McCarthy and David's piece at the gym at the basketball court with Bernie Evers, those are really it. - Those were, there were definitely some moments there. - I'm sorry to be so reverential. It must be like your birth year or something, but it feels good. - I appreciate that. - But back to the semis, I mean, listen, nobody or few people doubt the power of this moment in terms of AI and generative AI, what it's going to mean, but it doesn't mean that these thoughts may not be a bit ahead of themselves. When again, I'm starting to hear sort of, I'm a little, some concern out there about just this momentum trade. - Well, look, I mean, Ben Rice is from Melius, who's really had the great beat on things. We're talking about listen, don't write off AMD. Well, I mean, if you look at the chart of AMD, no one was really writing off, nobody seems to be writing it off. - Because he hikes his target by 70 bucks today. - Yeah, I know, and I said I'm a quick email saying, congratulations 'cause he does have a beat on things, but I'm going out to see Jensen, I'm making what everyone is calling the pilgrimage. At the same time that market historian Larry Williams, who's been writing more than he's wrong, is saying that's going to mark the peak in the NASDAQ, and he wasn't quite aware that happened to be coincident with what Jensen's saying. In the meantime, the early look at what Jensen's saying, and he's in deep dive mode, he's talking about verticals, he's just not just talking about computing. - All right, this is not next week, but the week after that, that you'll be out there, and then we're going to get this keynote. - Yes. - Which we get every year, but this is more fun. - This is in person, in person. And what's in person? - He's in person, he's in, yeah, it's not-- - Are you going to interview him as well for us, do you think, or? - Yeah, oh, good. - And what I think's important, David, is that this is a person, when he shows up anywhere, whether it be with you, HP, whether he be with Arm, Renee Haas is very close, and they work together. - Yes, I know. - At Nvidia, they work together. - Yeah, you just find that people just say, you know what, sell everything, and buy this. I mean, they're like, I don't know how there's enough money between the 5% on the sidelines, and unless the money's coming out of that? - It has been. - Yes, it is. - There's no doubt about that. So that's talk, as we said, down some seven consecutive sessions. - Very long time. - As we come to end this week, concern about a sales of iPhones in China, which represents as much as 20% of their sales, concerns about their strategy when it comes to generative AI, and when they're going to, we are obviously waiting, and there's this air pocket between now and June, let's call it, when we may get some news. - And we may not even get that phone. - Do you mean dropping a couple of hints from the online meeting? - Yeah, but now, David, the one thing I would say is that, we've had some defense coming out, we had a note this morning about how Apple may have some good service revenue, but again, what people want to see is a phone that's equal to the Samsung phone, which-- - All right, but it's gonna be a little bit going to be quite a while. - Well, but during the interim, it's not like this company is a pitiful, helpless giant. - No, no. But that doesn't mean that it's going to be something that excites investors. - No, it didn't. - No, it looked like-- - Or sees some leg of growth. Again, talking back, Jim, we're not talking about a company that's seen a lot of revenue growth. - No, I've been saying that-- - I've been seeing revenue to clocks. - Thank you. - I've been saying that to the club, listen, let it go down to 160, but there's been so many periods in my career where it's done this. You look, of course, even in 2011, when Steve Jobs passed, there was just these periods where he just said, it's over, and this company has giant roles. - I do believe Nvidia can pass it, which is pretty amazing. - You do, so you think Nvidia can add another trillion? - Yeah, I do. - Not even, doesn't even need to get that much Apple stock. - Well, actually, you know what? - Apple's taking care of the damn stock. - You're right, Apple's taking care of that. - But it's about 600 billion difference right now. It's like, of course. - But it's, remember, Nvidia's enterprise, so people don't see it. People go Apple and, you know, there was a great hoopla for the Vision Pro, and then that kind of went away, and people have to write more-- - Oh, wow, wow. It's less than 300 billion market cap, but discrepancy. - It's funny, right? - Well, I mean, it's a giant crevasse, or, as you would say, David, it's kind of a little off-sides head and shoulders. I stay away from technology, it's technical loads. - Nvidia could move into the number two position in market value. - Nvidia was a 100 billion dollar company five years ago. - Yeah, you know what's been fascinating was the attention paid to Jensen's Stanford remarks over the weekend where he talked about washing dishes and cleaning toilets, I've cleaned more toilets than all of you combined, just the humility behind this guy behind this powerhouse. - Wait, you can go out there. - Look, I mean, the Denny's period. Not everyone's had a Denny's period. The substantial time spent both washing dishes there, but also coming up with the next generation design, and we're talking about 1992. This is a long time coming. But he had this view for the age 110 years ago, which is, he thinks differently from us. There was a guy used to be in the top seven that was a very visionary guy. What'd you say? My name is Monteo, Monteo. - Oh, yes, Elon. - Yeah. - Yeah. - I think him was so quick. - Maybe he had that period where he left criminal minds 'cause he thought it was criminal porn. - You mean, Potinkin? - Yeah, maybe Potinkin. - Well, where's Chicago hope before that? - He showed up, I saw him some, he said some. - Yes. - He has a new, is it a, is it a, Amazon or Netflix series? - Yeah, I gotta watch. - He's excellent. But the reason I mentioned, of course, is because in David Zumber, we were, and also a seminal interview. - Thank you. - He came up. - On May 16th last year, we referenced Indigo Montoya, of course, and the famous, yes, he misquoted him. - Yeah, he did. - What is your point here about Elon Musk, Jim? - Well, because I just think that, that mighty fall. I mean, there was just not that long ago that Elon Musk was the richest man. Now, a base, so it was-- - Really, I think he's fallen? - No, because there's other things he's focused on. - That still still has a $570 billion market value. SpaceX is still the only thing, basically, that NASA has to get anything out into the atmosphere. - Musk is brilliant. I just feel like that when you look at what's happening with letter X, and when you read the truncated emails for Sam Altman, you have to say that this man is a tad distracted, plus of what, a billion dollar arson in Germany, and then the Chinese cutting the price, of course. It's not, I used the term "annabelle" as horrible, as you wouldn't endorse that. - Might not, but it's not all roses, that's for sure. - This talks about flat from the time David sat down with them. Tesla shares yesterday, lowest level since May, Jim, and Jonas's note this week is interesting. Toyota, he wrote, which has zero exposure to battery EVs is gonna gain more share in this country than any other OEM. - Well, look, Toyota has the possibility of the miraculous 10-minute charge that we're all waiting for. - 10-minute charge. - 10-minute charge. - Well, look, there's so high stakes. - This gave a super energy drink. - Yeah. - Kind of like that, right? - The 5-hour energy, the 5-hour energy 10-minute charge. - So take over, then, that took a little of this feet.com away from me, after 25 years. - What was the connection between 5-hour energy? - They nailed it. - Really, same guys. - Yeah, hold on a sec. - David, the synergy there and the artificial intelligence they used to find all sorts of new reporters makes me feel terrific about the legacy that I've submitted. - As you should. - As you should, yeah. - One of the great periods of my life was devoted to the court of my life was really devoted to giving good people health care. That was what I didn't concentrate on. Apparently, that's at the Admiral Care Plan. We haven't even talked about United Health in the old Manhattan. - No, we're gonna get to some recent calls on UNH. We'll talk to some Rivian, as well speaking of EVs. Watch some retail gap, which Jim had on last night in Costco, got news on Lillian Novo, upgrade of GE. We'll talk about all that in a minute. - For more than a decade, Comcast has been committed to bridging the digital divide and connecting millions to affordable high speed internet. But the barriers to get connected go well beyond affordability. Through Project Up, Comcast is committing $1 billion to reach millions with digital skills training, resources and opportunities needed to succeed in a digital world. Project Up, building a future of unlimited possibilities. Learn more at comcast.com/projectup. - Brought to you by Eaton Vance, the symbol of advanced investing. What's inside your ETF? With parametric equity premium income ETF, you know. Inside, you'll find institutional quality expertise from a specialized team with deep derivatives experience. Get to know what's inside PAPI, the symbol of alternative income, at eatinvans.com/cnbc. Before investing, prospective investors should carefully consider the investment objectives, risks, charges and expenses. The current prospectus contains this in other information and is available at eatinvans.com. Read the prospectus carefully before investing. Not FDIC insured, offer no bank guarantee, may lose value, not insured by any federal government agency, not a deposit, investments involved risk, principal losses possible. Distributed by four-side fund services, LLC. - We exceeded expectations, both top line and bottom line. We gained market share and all of this has been driven by the strength in our two largest brands, but the efforts that we're making in operational and financial rigor, that's what's showing up in the numbers. - That's Gapschee, for Richard Dixon, with Jim last night on Mad Money, the retailer up sharply on this holiday quarter beat, helped by improving trends, as Jim has told you, at Old Navy and its flagship brand. Different story over at Costco, moving lower on the revenue miss, really, as customers did pull back on spending, company beats on the bottom line, has some strength in e-commerce, Jim. There's a name where the P's gone from the 30s to the mid 40s in about a year. - Yeah, I want to, there was a characterization of some weakness there, and I think that people were caught up in a little bit of the thesis nature of the unbelievable CFO, Rich Glant. Congratulations, Richard Retire, probably the greatest CFO of our time. I think the disappointment was people thought he would go out with the membership price boost, which 90% falls to the customers, and 10% falls to the shareholders, and he did not do that. That was going to be, we thought, his swan song. I thought the quarter was excellent. I see good discretionary spending. The Chinese stores do very well. Let it come in, it just had a great special dividend. David, there are companies that have done so many great things that when it come in so hot, it just doesn't matter what's said, but people should have parsed the non-disgrash and just crash spend, 'cause it was extraordinary, and all the stories about it did not mention the fact that they didn't give the price boost, which is what we wanted, and they did talk about doing advertising, Allah, what Walmart's doing, and that's going to help them. That's free money. Although they don't have nearly the online presence that-- - No, because they want you to go to the stores. - Yeah. They want you to go to the stores. - Which is where the advertising obviously is. - Right, but I mean, people have to understand Glant, he isn't, historically, he's a rye man, so he's not, people think that he was saying something is negative, that's because they don't understand that Glant, he speak, this is an amazing man, and he will be so missed as the CFO, because he did not suffer fools, Clef. - Well, to your point, when you look at that chart or go back any period of time, really, there's rare instances where the stock has declined for an extended period. - Right, and this is now something, this is the longest period in recent years that they haven't gone through a price increase in membership, so people thought that this would be his chance to do that, that's the real status. - That's the real disappointment was no membership boost, and I think it's just a matter of time. The $15 special dividend impressed people for about five minutes. - It's been, yeah, I'm trying to think, we did our documentary in 2013, where we got to know it as an annuity, really, is what it is, based on the membership fees. By the way, Jim, last night, Galante did talk about AI, we're in the early innings of that, had some third party companies in, large companies, including one headquartered in Seattle, come and talk to us about the things they can do on the IT stack. - Right, look, I'm not saying that they are oblivious to technology, they like to come in afters, not only Apple, they come in after, they have it right, but in the end, David, when I was there, and we talked about the camis that was under price, but the seminal moment, the lock spread, - Really? - The free lock spread. - That did it for you, put it over the top. - Yeah, and it's a professor that I liked it, and then they gave me a plate of locks that was so big that we were all, we just kind of consumed it like we were dogs. - Nice, yeah, it was great to know. Well, I'll just give you a little color now, then. - I appreciate that. - There are some great, there's some great, that was pre-TikTok, because at that point, we were still weren't brainwashed, we were actually using selfies. - Yeah, we got to talk about TikTok a bit as well. Obviously, it's owner by Tans, not a public company, but an enormous company. - Do you sense that there's uniformity on that one issue in Congress? - It feels like that plan they had backfired a bit in terms of the pop-up that came up and called your Congressman kind of thing. - Yeah, that seemed to overwhelm the system, but it was not Mr. Smith goes to Washington with a lot of telegrams on the floor. - 50 to zero was the vote in energy and commerce on this measure that we do think will hit the house next week. Other news on Meta as well, on downloads. We'll get Kramer's Mad Dash countdown to the opening bell. Take another look here, final pre-market of the week. We're back in a moment. Support for this program is provided by Chevron. Demand for energy is projected to continue rising in the future. To help keep up, Chevron is increasing their US oil and gas production and they're innovating to help do it responsibly across their operations, including their Gulf of Mexico facilities, which are some of the world's lowest carbon intensity operations, helping supply energy that's affordable, reliable and ever cleaner. That's energy in progress. Learn more at chevron.com/meetingdemand. Take a look at some NASDAQ 100 gainers that you'll see in video up another 3% a day after the semis relative to the S&P finally exceed the high from March of 2000, powering forward as well with Intel this morning. Opening bells coming up in about five minutes, and don't forget, you can catch us anytime anywhere. Just listen to and follow the squad on the street opening bell podcast. - All right, let's get to a mad dash before we get started trading here at the NYC for the last day of the week. Eli Lilly shares move on GLP1s, but we have talked about their potential treatment for Alzheimer's. - Yes. - And there was some news, Jim, from the FDA. - Yes, it was not good. I have been saying, just, Lilly's even been running ads for it. I've been saying that Lilly's been saying this drug, their Alzheimer's drug, a denial of mad would be approved this quarter, and they expected it. There is a surprise to lay, and it's because they want to convene of outside advisors. This does surprise me for the work I did as the Chief spokesperson for the American Brain Foundation. I thought that this was a given that was wrong, and I think that what's happened here is that this is a very big drug. This is, of course, people think it can't do as much as a rest plaque in the brain, and it is, I'll call it disconcerting just because I really did feel it was a given. - Right, so now we're going to get a meeting of the peripheral and central nervous systems drug advisory committee to discuss the Phase III trials. This Phase III trials, by the way, enrolled 1736 participants across eight countries, and to your point, Jim, showed that particularly with patients in earlier stages of the disease, experiencing very strong results as the way Lilly puts it. - That's the surprise in terms of benefit. - Yes, and I think it's important to point out that this was not a criticism which would have set it back. It's much more about we have to do more paneling. Now, I think one of the reasons, David, and this would stress the system, it's that thing. They really have to have this thing down because everyone in America is ready. (buzzer ringing) - (inaudible) - (inaudible) - (inaudible) - (inaudible) - (inaudible) - (inaudible) - (inaudible) - (inaudible) - (inaudible) - (inaudible) - (inaudible) - Let's get a look at the opening bell here at the big board at State Street. A global advisor celebrating International Women's Day having done a little event at the girl outside on outside the exchange. - A very enjoyable tourist spot. Not as equal to the pool, but I think should just because it's kind of a great symbolism of some of the hope that we all had that more women get involved in the street. - Yes. At the NASDAQ, it's the Muslim American Leadership Alliance. Jim, one of the notes out of Goldman today does talk about, even though a lot of water is being carried by Meta and Nvidia, Tony P does point out industrials up eight for the year, healthcare up eight for the year. - I think that's very important, and 50% of the industrials are trading at their high. Last night, the president spoke about the real and re-industrialization part of the economy, and that is the sweet spot. I think that the, look, if you want to know, I've been watching, you know, I love Frank Holland's show in the morning. He had the CEO of Westco. Now, Westco's the kind of company that had been left behind. It's an infrastructure company, and it's doing miraculous work. A partner had been doing great work. I eat and was doing great work. David, if you want to know who's got an incredible re-industrialization thesis in terms of the grid, it is a company that Jay P Morgan upgraded today. - That'd be G. - G. - Because Vernova, which is going to be completely separated at the beginning of April, has a division that's got wind. It's got a natural gas turbine, but it has the grid. - Yeah. - The grid is in terrible shape, and the data centers are causing a 5% increase a year in the need for electricity, which hasn't happened. - I don't know. - We have an enormous need for electricity if we are going to continue to build data centers filled with NVIDIA chips and network equipment from the likes of Broadcom. - Marvell. - And Marvell that ultimately powers the generative AI models that are out there and anything yet to come. In fact, power is the gating issue right now. - Yes, it is. - When you plan a new data center, because I have been talking about this a lot. I've finally also been speaking to some people who actually run these companies, and you have to. The first thing, as I said the other day, the first thing you have to do is make sure you've got the power before you-- - And then you know what's next? - Or you even put anything up. You can scope three. These companies are demanding that there be no coal involved. One of the reasons why consolation energy. When I hit them, well, consolation energy is a remarkable company. That's the spinoff. Remember, they spit. It was a ham. And they split that all off. And the next, you know, consolation energy is one of the greatest performers of the year because they are nuke. And nuke is, of course, the answer, but they're five, six year or possibly. - Yeah, that's a long, long way away. But you're right. And we may, in fact, start to slow down our deployment to a certain extent because we're going to run out of power. I know it sounds strange to say, and we always seem to find a way, so perhaps we will, but that is a genuine concern. - Have you heard about the suburbs and plan of some of the hyperscalers to perhaps build their own power plants? - No. - And get involved because they just don't think that they can necessarily trust the people who are involved. You know, of course, a lot of these companies, they're sleeping companies. They're just, they do. They provide the 2% electricity, perhaps, that they're going on. And then there's a company that's cheap that really do recognize. There's a company called NextTracker, which has software that allows you to have solar. It really works. They believe that solar's going to be 25% or power, but we know solar is intermittent. But I have, for instance, AP, which was a company I really can't run. They've gone totally silent since Julie slowed their CEO. Mysteriously left the company. I've called almost everyone involved in this situation. And it's almost like it's the Manhattan Project. I can't find out what happened there. I'm thinking of the great paper this week by Michael Sembalist over at JPMorgan. That's looking at what would have happened in Europe if they hadn't decommissioned so much nuclear, how much more energy security they'd have. What would happen if we ran into huge net gas interruptions here? And the difficulty it is to shut down a building, clear it, and then fire it up again. That's weeks. Oh, no, it is. I had Enbridge on now. Enbridge is with the great people. He used to be in Spectrum. He's the number one oil pipeline now. He's gunning to be the number one natural gas after buying the Dominion properties because of the Dominion stretch balance sheet. And the importance of both for domestic, for power, and, of course, for national security. Amazing. But the president has pretty much kiboshed by using that 2028 clause. He has caused a decline in natural gas to $1.70. Because people don't want people to just say, "Look, we don't have a place to put this stuff." Well. Coterra switched round. We're going to need natural gas for powering a lot of these plants, still, again, to the wind and solar are great. But you can't always rely on them. You know, the wind and the stimulus pieces. I mean, he's written a couple now in the energy transition. Of course, comes back to the idea that you need to put a price on carbon, which... Right. Doesn't appear that's going to happen. And do you think it's most involved with that energy at JPMorgan in terms of watching what assemblers does? I don't know who. Jamie. He is, eh? Jamie is... Jamie Diamond is a... Look, I mean, I know I've had my go-rounds with Jamie, but he's the guy who speaks to Jensen. He works with assemblers on energy. This man is not a banker. He is a central spokesman for industry. Yeah. But, you know, perilous times. Can we move back to Marbell and Broadcom? I want to take a look at Bubba Bubba after earnings. Matt Murphy is so great. There's one thing I wanted to discuss with you, Jim, which is gap versus non-gap, which we talk about. Now, obviously, they're judged to a large extent on their revenue growth, and that moves things. But, you know, when you look through to the income statement and what, you know, stock-based comp, and restructuring related charges, and amortization of acquired intangible assets, legal settlements, and other special items. I mean, Marbell lost for... lost with a... Okay. 392 million. Instead, they made 401.6 million now. Broadcom explains why they feel like non-gap is a better way to view these things, but it's still worth noting. This company, the chairman of this company used to be Rich Hill. Rick Hill. Rick Hill was the guy. Remember, I don't know if, you know, he switched to a starboard. They went in for the company. Yeah. And he doesn't allow any of that stuff. And he set this company up to be his conservatively run. Matt Murphy did not cause this rally, David. All right, so you don't buy any of it. You're not worried about the just the huge differential between non-gap and gap. No, because Matt... Going from losing 400 million to making 400 million. Look, Matt bought this business, and it didn't... he didn't realize it kind of backed into this optical business that is so good. It's the street that's driving this. I think that... I had to think that financials are solid, but if you really want to know rock solid, look at what Hocktan delivered. Right. Well, Hocktan, again, I mean, the differential between gap net income of 1.325 billion and non-gap, 5.24 billion is enormous. Do you not think acquisitions played a role? Of course they do. And let me, in non-gap information, excludes amortization of acquisition-related intangible assets, stock-based conflicts for restructuring other charges, acquisition-related costs, including integration costs, non-gap tax reconciling adjustments and other adjustments. Management does not believe these items are reflective of the company's underlying performance, and internally, these non-gap measures are significant measures used by management for purposes of evaluating the core operating performance of the company. I don't want to be duplicitous. That's why you get non-gap and that's why everybody lists. Everything that David said is the problem is so kind of valid. Because these numbers are not apples to apples to any of the eastern companies. So I totally get where he's coming from. I mean, Costco is just pretty straightforward. Costco. Here's what we mean. Here's what we mean. It costs us, and here's our interest. There'll be people in the call who question Mitch Clancy on something, which is, let's take the next call. Yeah, basically just saying you don't belong in this club. You flunked. He'll be missed. Meantime, Jim, some stories on the tape about Huawei's innovation on the backs of the gate. On the backs of the gate. It's due to use the equipment that China's gotten their hands on out of LRCX. No, no, no. Rick Hill built lamb too. He sold that to the -- it's novellous. That combination lamb -- no, look, here. They didn't comply with the old rules. There's $2 billion of business that lamb lost. That LRCX lost to China. So it's not like they're -- David, they're playing by the rules. But the rules came in a little bit later. And meanwhile, Huawei's got the knockoff phone. Now, David, there's a -- you see that? Yeah. This is where the actual intellectual property lies. This is how you make the stuff. We could talk about Taiwan semi-old we want, but if we look into Taiwan semi-old, what do they have in there? Well, you know, they have American intellectual property. And this is what we -- the government correctly doesn't want this company. This is how you belong in Block ASMLF, because these are the companies that actually make accelerated computing. They make generative. Right. So they -- right. It's their equipment that Taiwan semi puts together to obviously do a better job than anybody else in terms of nanometers I can't even do. Well, remember the -- and lamb is a little late, but this is a battle between Moore's Law Intel, okay? And Jensen Wong Moore's Law is dead. And look, we should have -- we should have Pat Gelsinger on right now, because he's saying it's alive as well. All right. Well, you want to put up a 20-year chart in Intel versus Nvidia? We'll see who won that battle. Who won that battle. Oh, he evens the 1989 to 2002 chart. Yeah. I'm sorry, 2000. Even 10 years, actually. All you need is a 10-year chart of the two of them to show who won that battle. Lamb's a remarkable company. It's fantastic. We're talking -- there it is. See, you asked for it. You get it. All right. That kind of tells the story. What's up to 20,000 percent and the others up 86 percent? Well, and you see that right where the dip was? That's when Everest, I renamed him Nvidia, just because it's sustained and it's changed the direction of the stock. Yeah. You know, you talked about China. We mentioned it, but it's worth perhaps coming back to as well, this potential TikTok ban yet again. If you recall at the end of the last Trump administration, there were all sorts of plans, potentially, the ban TikTok to force it to be divested by its owner, ByteDance. Right. And there was a potential Microsoft ban in the world. They were in a wall-marked bit. None of it, none of which came to fruition, all of which was hard to figure out completely. It was. It was convoluted. I'm just going to look at it. But, you know, Carl -- You mentioned General Laddick. How about General Laddick? Well, General Laddick, though, for it's still on the board of ByteDance, of course, as is Philippe Lefan, who runs Co2. But, you know, a lot of these TikTok users got this notice, or many of all of them saying, "Stop a TikTok shutdown." Right. And then, many of them who are younger, call Congress, even though they don't really know what Congress is. No, that's true. Sadly. Right. Another failure for our education system, perhaps. But so they call Congress people that they don't really know what they are but saying, and then the Congress people have reacted not well. There's a lot of Congress people, so there's a lot of phone calls. They had to look that up. They had to Google that, I think. They didn't use chat. No. Then you got a quote. In the meantime, can I just say that David killed Marvell and Roy Com. They were doing so well. You killed Marvell. You can kill them at all. I'm just thinking the point that you've made a number of times. You killed it. Which is GAP versus non-GAP, which we all take, which is fine. Such an adjusted EBITDA, which is another measure that we all use, but occasionally you just got to remind people what is part of it and what is not part of it. And certainly for a bigger choir such as Broadcom, acquisition-related costs, are they really not a part of their ongoing businesses? No, it is. They do acquisitions all the time. It is, but David, if they hadn't mentioned it, obliquely Jensen Wong, the stocks would be down very badly. Yeah. This is Jensen Wong versus David Faber right here, Marvell. Oh, it's not. I want to come back just quickly to bike dance because the owner of TikTok is valued at about $270 billion on its last round. Yeah. $270 billion. And you know who owns 15% of this? Susquehanna. Susquehanna? Susquehanna, the trading firm? Susquehanna. Susquehanna is smart guys out. Vamed and akin to faith and made an investment a long time ago. And they're delightful. I think it was a $5 million investing around in 2012, when bike dance was formed. 15% of bike dance. It's a $270 billion in volume value. Maticians. Maybe less if this TikTok band really does something really happens there. By the way, if TikTok band happens, snap, meta. I mean, think about all the beneficiaries, I guess, as well. Look, I'm going west in a couple weeks and you just know, and you periodically hear somebody like Susquehanna in the east called. They figured some things out, but they tend to be mathematicians and engineers in the east. Computer scientists in the west. And it matters. Hey, by the way, there's a positive piece about you. Today, picking up some advertising off of this. YouTube. That's alphabet. It's been a while since we've heard anything good about alphabet. Meantime, FT's got a big piece about Instagram. Overtaking TikTok downloads at the end of last year. Some were tying it to threads which you do need an Instagram account to fire up some threads. Someone go on to threads this week and make a point of it. I thought that was a very good call. One of the unsung things is that the Zuckerberg relationship with Jensen Wong, 350,000 H1s bought total of 600,000 by the end power. This is to make it so that the feed is a lot. Everything goes so fast. Those kids who wrote that they have a drinking game that they do every night based on how many times you mentioned Jensen are going to be so complete. Why? At least it's a Friday night. Why is the numbers from Jack Daniels so bad from Brown Corner? I don't know what they drink. You know what's the biggest decline or double digits? Casa Migos. Don't cry for George Clooney. What happened? That people have gone away from TikTok a little bit. They have? Why? Yeah. I think it's too sweet. They're going to a mess gallery? Very good piece of it. I don't know if you saw a journal piece. There's a mess scale piece this week that basically just says the transition from tequila to mascallas. It's running at basically accelerated computing speed. Yes. There's also been pieces done about where you're going to get your raw material in five years. That's why we had to go to Puebla because Wahaka is out of me. Yeah. They're out. You can't. I couldn't even get 1500 bottles worth on my wife. She's in Puebla which is really, we have two million plants there. Yeah. We're okay. We just need to have two million people drink. You mentioned. I mean, we've talked about the impact of cannabis in states where it's legal on alcohol. Okay. You mentioned GLP ones. I know. Oprah is going to have a special about... Why is she left way wide? Exactly. But I'll tell you that the very soul-searching call of Brown Form is saying, listen, we can see no correlation between cannabis and this, and they deny GLP with Dash one. But I think that the problem is that they raise price, raise, price, raise, price. David, the Browns, as we call them, are too expensive. Is that what it is? They have to cut price. Oh. And then there's also that old Pappy Winkle thing. Angels envy... Delicious. What? Angels envy? Right now? You don't like? It's a little early in the morning. No, I have no like to taste for it. Well, I'll tell you, the problem is that there's this whole class of great ones, the Woodford Reserve. They all taste fantastic. High West, I like. High West. But, you know, David, that's probably not... I don't know, you probably have Celsius. What a stock. Has that been a good stock? Yeah, Dow Chemical. Dow, you speak Dow Chemical. I think they gave the chemical to Celsius. They kept them down. Got it. Come on. I have a pallet in my office if you want to just really... Of Celsius. Yeah, if you want to finish. It's a little bit showing up here, too. Yeah. There's a look at Dow, for some reason, Jim. So, thank you for that. It's got a good yield. Yeah, not bad. Make it a good comeback. Betterlings doing a good job. Speaking of movers... What is that? We did mention it briefly, but we should come back to Rivian because it is having a nice morning so far. Up some six and a half percent on, I guess, what's up... Oh, it is. Yeah, but a positive reception to the rollout of... I see the R2 rate. The R2 rate? The R2. Scaryng with the tweet just now. Really? Saying that in less than 24 hours, we've taken more than 68,000 reservations for the R2. Well, good. Because I was going to go to that factory when it opens to Georgia. I still intend to do so, but I can't go up. So, on a CSX railway, those guys really know what they're doing. Have you just driven the R2? I've never driven a Rivian. Oh, go to Brooklyn with me. Of course, my wife, because I drive awfully. And it is just... It's so great. Why? Because it handles much tighter. It handles like a BMW. Really? Yeah, it's got that tight handle. Let's see if Steve's shirt, it hurts, takes some down. I think he's going to stay away from these for a little while. Kind of a blow for Georgia economy as well. This plan was the second biggest eco-development project. I committed to going to it. I'm not giving up. I think that they do have the Amazon pack. The thing is really beautiful. It is just a great ride. But the word is uncertain time because of the E on Wii for EV. On Wii for EV. The Volvo. Don't get the Volvo Trojan horse out of China. Right, really. The owner of Volvo. Meanwhile, our markets are doing quite well. I would just end on that with the NASDAQ up almost 0.6%. Oh, this is, by the way, advancing. Let me just see... Let me see if there's more homicide by David. $38 trillion market value. Even sure it's Apple. David out of the game. You've got Marville down 7%. It looks so well. Yeah, right. I'm calling Matt Murphy right now and saying that you sent him an invitation to his funeral here. It's ridiculous. Let's get ahold of him. Meantime, no real data today. We got the jobs number, of course. Williams was earlier this morning. Ten year did go to 404 and that took you back to February 2nd. Bounced a little bit since, but David's right. 51.80, S&P all time high once again. Don't go anywhere. Big question for the market is whether Apple can find some legs here around 170. After being down seven straight days, that hasn't happened for several years. And versus the S&P 52 week low. Along with names like Tesla saying... And it'd be very quiet. It's hard to get a win on Apple right now. Meantime, Dowock 126 though, in spite of that behemoth in the red. Stop trading with Jim's coming up next. Let's get to Jim and stop trading. Yeah, price softly remains one of the dominant themes. If you're in it and if you can write one or have security involving and platformization, then you're going to be loved. So MongoDB reports last night, MDB. They were on this morning. The stock was down 35. It is now down three. And pretty soon it will probably be up because their software enterprise didn't matter. They gave you a week forecast because that's the sainted part of the economy. Look at that. Well, yeah, the stock was down 35. No one even cares. Right back. Yeah. It was a great buy. The only one that rivals that is David Dawg, which is also doing... Mongo does pawn in the game of life. Did that? Yeah. You know that. Meanwhile, Jim, next week we'll get Oracle. Along with the smattering of specialty work. It was missed twice. So let's see if they can pull it off. They better pull it off because that stock's been a severe underperformer during this period. Yeah. Oracle and then CPI next week will be the other big term. Oh, no. Look, there's one of the things that we used to have earnings season. That's went out the window. I mean, every day is earnings day. Right? Sure, Jim. Whatever you say. I'm going away for a week, so you enjoy yourself. No, I'm on assignment or I'm off in the morning. David, don't you know the code? I'm sorry. David, Jim is the morning off, which means I'm by the pool. Actually, no, I'll be still working for the club. Every day I'm going to work for the club. We're not going to send you for a couple of weeks, so because you're going to be gone. Well, I'm going out next week and then you're going to be out with Jensen. Yeah, but next week I'm going to work for the club all week. I'm going to have my 10-20 call because the club is the thing. The club is the thing. Shorter term tonight? Uh, what for... Mad money? I've got an amazing show tonight. I'm going over the mags, the European Mag 7, which now that we've lost the American Mag 7, I'm going to do the, this is going to be the Russian one version, by the way. Well, you never really know. Exactly. Yes. Thank you. Jim, can't wait. You have to be on assignment and have the morning off with you guys is quite a thing. We'll miss you. Will you say it in the morning that Jim is a morning off? Will you do that for me? I will update people on your whereabouts at all times. I'm at the club. There's love in the club, by the way, 10-20. Yes, a lot of people are. We'll see you tonight, Mad money, 6 p.m. Eastern time. In the meantime, 16 points from 5,200. Don't go anywhere. 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