Plus, tesla aint looking so magnificent. That is the view of wells fargo, the firm slapping that ev maker with the equivalent of a sell rating. Lets begin with this ongoing market rally. As we said, s p is coming off that record close, posting its best day yesterday in march. A lot of discussion. We were talking about the wells note today about disjointed momentum trade going on in frot of friday, mike. It has been a little bit agitated. This has been a fuse people have been watching burn down, this idea that the market is o overrelying on these momentum movers. Laggards took up the slack. Yesterday, little bit of a reversal. It was a bounce. I feel like, you know, its admirable that the market is able to repair itself this way in an ongoing basis. Its a bull market. The pullbacks have been shallow. Theyve been brief. But it still hasnt relieved a lot of what could be the excesses within it, which is the extreme outperformance of things like semis. And the extreme reliance on the daytoday basis on sometimes a handful of names. Yesterday was kind of a 50 50 market breadth day, and yet you had the best day in march and got a new record. I think thats why people are still a little bit on guard about the field position. The markets in you mentioned its quiet on the macrofront. Yields have been levitating a little bit within their range, and what that has tended to mean is whatever broadening action you would expect if the economys going to be great, it gets halted when yields go up. January 5th of this year was the lowend yields. It was the high for the equal weight s p relative to the nasdaq. So, you see this dynamic out there where only the secular winners can perform when yields are going up and youre not going to get a rate cut, so i think thats where we are. Sentiment seems pretty elevated, some new data this morning, investors intelligence, pretty extreme. So, you know, it makes all the sense in the world to expect this market to cool off. It hasnt done so yet. This was sort of the topic, david, of saras discussion with ken griffin yesterday about there being two separate risk profiles in the market right now. Theres the a. I. Trade and the less expensive industrial trade that he talked about. Talking about both and perhaps not a surprise and not necessarily something our viewers are not well aware of, which is, nvidia looks pretty good. Channel checks . He likes it. Hes been doing his channel checks. It looks good, we can take a listen to what mr. Griffin had to say to sara eisen. None of us know where we are on this journey. What i will tell you is the team at nvidia looks like theyre really on top of their game right now. Yeah. They have done just incredible job. Its like the gold mining in california. Those that sold the picks made a lot of money. And its very clear that nvidia, right now, sells one of the most important ingredients in the a. I. Story, and theyve done an incredible job of capitalizing on it. Whats really interesting to see is that the large language models, the barriers to the production of a worldclass model appear to be somewhat lower than what we thought they were nine months ago or 12 months ago. If you look at recent events, anthropics most recent model release is a real competitor to whats been done at openai and thats one hell of a statement. And in fact, i think you could argue youre not an investor in anthropic, right . No. Just to see if im talking my book . Yes. Sorry. Thats fair. Go on. So, theyre competitors. We want to find out who the next nvidia is. I dont know who the next nvidia is going to be. I dont know where amd is going to get on their race against nvidia. I dont know where intel is going to get. Right now, nvidia sits in a pretty good position. Interesting to listen to. I mean, in terms of powering the large language models, that point he made that an anthropic can become a competitor in the sense that you dont need all the computing power. That said, coming back to the overall theme that nvidia is the levi strauss. What he is saying is what we know for sure is what the market is confident of and is willing to give a high probability of success for is massive amounts of upfrontcapital investments happening right now. There are supply shortages. The payoff, ultimately, down the road for running a. I. Models or creating them is very much up in the air, and maybe it ends up just being kind of a broad scale productivity boost type of thing as opposed to, you know, many, many Fabulous Business models that grow out of it. But its too early to make that call, and the market is saying, all we know is, whether it makes sense or not, people have to invest head long in this area. He also said that as of right now, a lot of these llms are not that smart. Theyre just good at aggregating whats already existing on the internet. And you have talked a bit this morning on squawk about the markets search for a second savior. Keeps looking for wanting to look the a these existing companies and saying, do they have the magic . And so, obviously, it happened with broadcom. They clearly are a player in this area and the market revalues it in a hurry, and it happened to dell last week. Arguably, oracle this week. The dell move, which was a significant one, when you look deeper into it in terms of what theyre actually putting in the datacenter, the dell server, obviously, it was the inclusion of the nvidia chips. The nvidia chip is most of the money there. The margins on that product for dell are not particularly large. Its not particularly profitable. Yes, they were absolutely a beneficiary of the fact that they seemed to have access to chips that perhaps some of their competitors did not. But i do think its important. I believe michael dell even was open about this. Its not like this is a huge profitmaking opportunity, because frankly, theyre paying for those chips the same way, and they represent 75 of the overall value or whatever it may be, of what theyre putting in the datacenter. Theres no doubt about that. Whats key about the reaction, when it came to dells stock, it was starting at 12 times earnings. When you have a stock thats priced for essentially no growth longterm, and all of a sudden its like, wow, we got this cycle we can ride for a little while, and we are, you know, and again, with the scarcity of ways to actually leverage it in the market, you get some benefit from that. Right. So, the question is whether its durable. Even in that case it seems the real value, ultimately, was nvidia. Yeah, exactly. And by the way, poetically, today, b of a takes nvidia to 1,100 from 925. They say the the calendar 25 forward pe, 37, is within a large range of the 20s to the 60s, and they up smci on exposure to the a. I. Server network. Exactly. Were almost a quarter through the year, so we can Start Talking about 2025, and we can Start Talking about the pe range that nvidias had in the last couple years. Its all a way for people to say that the story is not over, as he calls it, ahead of a. I. Woodstock. Lets move on to the legislation that is in the house today. It could ban tiktok in the u. S. Over concerns that the social media app is a threat to National Security, given its ties to china. Emily wilkins is in d. C. And brings us the latest. Emily . Hey, david. In less than an hour, the house is expected to not only vote but to pass a bill that would give tiktok an ultimatum, either divest from Chinese Parent Company bytedance or be banned in the u. S. The road ahead is going to get tougher for this piece of legislation. Tiktok has ramped up lobbying efforts against the bill, and the ceo is expected to be in d. C. This week for meetings. Dozens of video creators on tiktok met with lawmakers yesterday, and they also held a press conference as a handful of progressive lawmakers, who oppose the bill, including maxwell frost, who says the roughly sixmonth window that tiktok would have to find a new owner under the legislation would not be enough time. Its unreasonable to believe that in 180 days that a buyer will be found and that the deal can move forward, which would result in tiktok being banned, whether its banned for a year or two years or six months, a ban is a ban. The bill also lacks a clear path in the senate right now. I spoke with nasenators yesterd, and they share the National Security concerns the house has, but they have some other issues theyre worried about, things like freedom of speech, whether it punishes tiktok in an unconstitutional way and the ramifications of getting rid of a popular app almost 170 million american users. Congressman mike gallagher, who chairs the House Select Committee on the Chinese Communist party, has said that this bill has been tailored to avoid past pitfalls to other bans on tiktok such as measures that are too targeted against a Single Company. Our bill is a Regulatory Framework and its prospective for companies that are controlled by a foreign adversary. Its a Regulatory Framework, not a punitive framework, so i think any concerns over bill of attainer simply dont apply in this case. Theyre waiting to see what the house does before taking a closer look at the bill, so this is going to be an interesting vote to watch as nearly all house members support the bill. The pressure is really going to be on the senate to act. David . Thank you, emily. Emily wilkins in d. C. And of course, interesting journal story today about how the company may have been surprised at just how swiftly this effort was undertaken, somewhat furtively as well, so it was a surprise. They thought they were in a good place when president biden, for example, joined tiktok around the super bowl. I continue, mike, to just focus on what would it mean if it actually happened. How do you do this . You have enormous amount of potential value here in the u. S. In terms of tiktok and what it means to the Parent Company, bytedance, though frankly, bytedance has an enormous business in china, dont forget. And its easy to say, well, youd have to just divest it or close it down. Much harder to do, and again, the source code and the algorithm, theyre not going to go along with this thing. And so, it just become a very interesting but difficult dance, if, in fact, this is something that gets passed. It also will be challenged in the courts, so who knows when it would occur. It is amazing in that sense. Theres even a sense out there i mean, had they made the case about the National Security threat, specifically in terms of the harvesting of data, the use of user details, or is it just, look, this is a channel through which, you know, hostile actors have propagated messages, and the chinese authorities maybe can have some sway. So, whether that matters or not, probably not for the vote, but maybe not for the vote, but its not clear if they have made that case, carl. Im not aware of specific instances theyve cited where there has been chinese control. That said, of course, its something youre not going to see most likely if its done well. Sorkin tried to get it out of cruz in the last hour on squawk, do you have evidence, even classified, that you can share generically about risk . Hard to get. By the way, comment from the Chinese ForeignMinistry Spokesperson saying, this kind of bullying behavior is used when one can no longer win fair competition. The u. S. Will only hurt itself. Their essential argument is that this is going to be erode confidence of International Investors in deploying money to the United States. Yeah, i mean, one of the retributions, if you want to call it that at some point, bytedance will go public. It certainly wont be here in the United States. It would be in hong kong and would be one of the single largest ipos. Its trading about 220 billion, but that may be quite low given how much cash they have with 25plus billion that im told in operating income the company has. I mean, you can think about a multiple there in terms of what this thing really may be worth, even a tencent multiple gets you to an enormous value. Well look for that vote beginning at 10 00 a. M. Eastern before the house gop goes to their retreat. Well watch some retailers today. Dollar tree, the biggest laggard on the s p this morning as theyre going to close hundreds of stores, and they do guide below on q1 revenue. Well get to autos. We mentioned the downgrade of tesla. A lot of news in the airlines specifically regarding that Alaska Airlines flight. A lot more when we come back. At Morgan Stanley, old school hard work meets bold new thinking. To help you see untapped possibilities and relentlessly work with you to make them real. At pgim, finding opportunity in fixed income today, helps secure tomorrow. Our timetested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. Pgim investments. Shaping tomorrow today. Rylee from rylees realty hi this listing sounds incredible. Lets check it out. Says here it gets plenty of light. And this must be the ocean view . Of aruba . Huh. This listing is misleading. Well, when at t says we give businesses get our best deal, on the iphone 15 pro made with titanium. We mean it. Amazing. All my agents want it. Says here. inviting pool. Come on over too inviting. Only at t gives businesses our best deals on any iphone. Get iphone 15 pro on us. welcome back. Its three weeks. Three. I dont know. Which three do you do . Three weeks until shareholders vote on that proxy battle that is ongoing at disney where nelson peltz and jay rissulo are trying to get seated on disneys board of directors, and both sides are fully engaged in trying to weigh shareholders to their side with various presentations hitting almost every day, one from either side in terms of arguing their case. Of course, trians argument, hey, the performance of this stock price has not been good over a long period of time. We need to be on this board to ensure that, in fact, shareholders are looked after. Disney, for its part, spending a lot of time with its own shareholders. In fact, i know bob iger, boston, baltimore, washington, d. C. , you name it, sort of visiting with various shareholders because, again, this is sort of the heat of the moment right now in terms of both sides making their arguments. Large shareholder bases being the key, so the institutions that continue many of those shares, as you might expect, are getting their chance to hear from mr. Iger, for example. In my various reporting and just talking to any number of people as i try to do on occasion, disney has come up, and in fact, i can share the following from one jamie dimon. Our viewers may know who that is, of course, the ceo and chairman of jpmorgan. Hes decided to weigh in here with his own comments in terms of where he sees things going and what he wants, and gave me the following statement. Bob is a first class executive, an outstanding leader who ive known for decades. He knows the media and entertainment business cold and has the successful track record to prove it. It has a complicated industry filled with creative talent, requiring the unique expertise and engagement skills that bob possesses. Putting people on a board unnecessarily can harm a company. I dont know why shareholders would take that risk, especially given the significant progress the company has made since bob came back. That, again, a comment that i was given from jamie dimon. I c i should make the point that jpmorgan has advise disney in the past on defensive matters, for example, in dealing with activists, so they are and have been paid by disney. That said, dimon, i dont recall him ever weighing in on a proxy battle previously, and so i think it was newsworthy, his interest in doing so here. Obviously, he is squarely behind bob iger, and i think sort of the background in some way to those kinds of comments is simply, listen, shareholders may believe that, in these kinds of situations, you know, its not a big deal to add even just one board member, but ceos argue differently. They would argue, as jamie is here, that restructuring the leadership or adding one or two different voices that are, you know, that are not necessarily not just discordant, but actively working against the ceo as bob iger would argue is going to be the case here, really is disruptive in what is a transformational period for disney. And that gets to sort of this idea of risk. You know, whether or not, right or wrong, bob iger views much of this trian effort as Ike Perlmutters effort, and Ike Perlmutter and bob iger do not see things the same way. Perlmutter has tried to get iger fired in the past, certainly didnt want him to come back, and it is the perception, i believe, that if, in fact, trian were to win one or two board seats, iger believes that its perlmutter who is behind it and therefore would make his life very difficult. And so, you do have to raise at least the question of the instability of management if, in fact, trian were to win a seat or two, would you keep that management in place . Would they be willing to stay . Would bob iger say, you know what, as much as i love the company, this is not something im interested in dealing with. Thats certainly something as well that shareholders may want to keep in mind at this point. As we continue to monitor, guys, what is going to be an interesting vote, the institutions play the key role here, not that retail is not of great importance, and both sides making their strong arguments as to why they feel, a, of course, that rissulo and peltz say they should be on the board and as much as iger and disney says, this is not what we need right now. We are on the right course, we do not need socalled rabblerousers in the boardroom. David, as this battle has gone on, arguably, its become harder to argue that disney has somehow misplayed the hand that it had relative to traditional media competitors. If you just look at the way the stocks have performed and the valuations that still are in place, you know, theres always been this question of, you know, okay, exactly what should have been done differently . You cant go back and not buy fox, the fox assets, which is one of the criticisms of peltz, that it was a bad deal. Well, at this point, you have what you have. Yeah. And youre right. I mean, peltz, they would make the argument, obviously, of significant underperformance during a period of time versus the s p, but if you compare it to a paramount or warner bros. Discovery, its a very different story, to your point. Now, theyre different companies, and parks obviously helps fuel the earnings at disney, and they have used that to try to create a profitable directtoconsumer business, and carl, that continues to be the key question that many of the shareholders have in terms of when will they get to that profitability . Obviously, last quarter for disney was a major, major advance in terms of those goals. Right. Extremely confident in q4 . Yes. Watch it closely. Jamies right about it being a complicated business full of artistic personalities with difficult management exercise. Thats good stuff. Countdown to the opening bell. A lot more squawk on the street when we return. Encore energy, americas clean energy company, now in production in south texas. Energizing america with reliable and affordable uranium for Nuclear Energy fuel from our environmentally friendly extraction process. Encore energy. At pgim, finding opportunity in fixed income today, helps secure tomorrow. Our timetested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. Pgim investments. Shaping tomorrow today. We mentioned some of the upward pressure on yields today. Not quite the highs of the month. We got 4. 22 on the 4th of the month, but people wonder what ppi sales will bring us tomorrow and what impact that might have on pce toward the end of the month. Opening bell coming up in about four and a half minutes. Announcer the opening bell is brought to you by nuveen, a leader in income, alternatives, and responsible investing. Awaiting the opening bell here. Take a look at futures one last time as we get set for the bell and the cnbc realtime exchange. At the big board this morning, it is an investing and Wealth Management company for women built by women. Founder and ceo seally is going to join us onset. At the nasdaq, its deal makers, a community of female csuite leaders and investors in the retail and consumer spaces. Speaking of which, mike, got a lot of real news out of Williams Sonoma and dollar tree and petco too. We did. Dollar tree is, you know, a little bit of a messy set of guidance, i guess, is the way the street is taking it anyway. Going to be closing a ton of Family Dollar stores. Stock opening up down 11. 5 . Even leading into the number, there was some questions around, you know, the pacing of tax refunds and all the macro stuff thats gone into that. And it seems as if just, you know, even though the you know, the consumer in general has been hanging in there, the question is exactly how much fatigue youre seeing in that segment of households, so this reset lower, basically the guidance sort of bracketed the consensus, but definitely with a downward skew. Seeing the results there. Its almost 30 billion market cap company, but walmart has been the clear preference, along with costco, in anything related to broad discounts. Those who are positive on the stock, mike, i think, making an argument that the underlying comps for dollar tree are actually accelerating on a two and a fouryear basis. Yeah. Im just reading some notes here. The notion this is a setback to the bull case is perhaps overblown, at least thats one side. The other being, hey, listen, they came in 16 below the street. Well, thats the thing. In terms of guidance. Yeah. And there was a little bit of a sense out there that they were going to benefit from an extra week in the fourth quarter. It was a little messy, and sort of seeing the impact right here. You know, Williams Sonoma, on the other hand, still doing pretty well. Nice. Take a look at the chart, up 10 almost this morning. Gross margins beat. Comps fell a little bit less than expected. Nice 25 div hike. They boost the buyback. They tweak higher their longterm operating guidance. Interesting given the atmosphere around housing in general, mike. The fixed goes back below 7 . That trade has been recharged a bit. Youve seen the builders themselves do a little bit better, and yeah, were testing just exactly how sensitive people are going to be with a down tick. These little moves in rates. Williams sonoma seems like they have Pricing Power and all the rest. Its not so much big ticket appliances. Its just, they seem to be in the general area of merchandise, people want to be. I know the jpmorgan desk this morning pointed out that the xhv, psurpassed about 300 basi points. The Home Builders and the semis have moved really close with one another, even over a oneyear basis. You wouldnt think that it could keep pace with semis, but its almost a similar thought process behind it, which is massive supply constraints, therefore Pricing Power. You know, also long run secular drivers that are hard to necessarily address. So, demographics, shortage of homes, and of course, we know whats going on in semis. So, i mean, its a smaller group. Its not actually something thats going to drive the overall market, but if this is one of those arguments that if housing gets recharged, we had our downturn there. Manufacturing is perking up. Inventories look like theyre in a good place. Now, one group will say, well, that could rekindle inflationary pressures. The other says, this is, essentially, this sort of rolling reset of the economy thats already happened, and so consumers are getting a little hesitant. Youre seeing a little bit of fraying in the labor market. The feds own labor Market Indicator has rolled pretty decisively. I think we should take powell at his word when he says the risks are balanced right now. He wants to emphasize that, and i think theyre cognizant of not waiting too long. If june is the first cut, its 11 months at pause, at the highs and rates, thats a long time. And the only longer one, i believe, was ahead of the financial crisis. There was one chart circulating yesterday from nfib. They ask employers, is quality labor your number one problem . And that has fallen off a cliff. Yeah. Which a lot of people read as being quite bearish for the labor market. Yeah, exactly. Its interesting. Nfib, directionally, does correlate with all the macro stuff but its super small businesses. A lot of owner operator. 75 is like under ten employees or Something Like that. Still, it does have a lot of materiality for the big picture in terms of, can you find people . What gets housing going other than lower rates . Lower rates and pentup demand, i think, is the idea, and the idea that the people who have waited to put their homes on the market because they were locked in, that just sort of wears off over time. You just have to move. You have to do it. You have to you need a bigger place. Whatever it is. Back to the five ds, right . Diapers, diplomas, diamonds, divorce, and death. There you go. Life goes on. Yeah. It does. But right now, we still have new home sales as a percent overall, far higher. In a way, its still a clogged market. Guys, we mentioned tesla at the top of the program. We havent gotten back to this wells fargo downgrade. A Growth Company with no growth seems to be one of the key thesis they are laying out there. Growth in core markets is moderated with eu and china flattish in the last 12 months. U. S. , down, this the Second Quarter as well. More concerning, they say, is the effect of price cuts are moderating with the second half volume up only 3 despite pricing that is down 5 , so the cuts resulted, obviously, in a reduction in profitability of as much as 6,800 per car. Yeah. They go on to say that in the wake of price cuts, you wind up with, as they say, lower lease residuals. Weve seen that at some of the rental fleets. Disgruntled customers and the possible loss of the brand premium. They were at 200. Its not as draconian as the deutsche downgrade earlier in the week where they went to 218 but its below bernstein, which has been at 150 forever. The radically cut earnings estimates in the wells fargo downgrade, theyre looking for 2 this year. The consensus is 3. 03. Theyre looking for 1. 90 in 2025. The consensus is 4. 16. So, obviously, the call here is that the street is asleep in terms of the longer term dp dynamics. The Company Earned 4 in 2022. In terms of that sort of static profitability, and now it looks like if wells is right, the flat, it makes it look much more expensive. The stock, 90 times next years earnings. I think what i would be looking for is the stock to actually rally on one of these calls and where you have the sense out there that, yeah, it doesnt look great, but its in the price and we have people washed out of it. Whats interesting, too, is that Morgan Stanley today, adam jonas, actually lifts the u. S. Autos as a sector. He talks about Better Capital discipline, Better Capital return, lower spending on evs and avs, better restructured portfolios, better collaboration. 10 upside, he says, to our targets across the u. S. Auto space. Interestingly, 10 upside, 7 if you exclude tesla. He still loves tesla, big, integrated bullish call in terms of the price target, but it seems like hes sort of articulating the gm story of recent months. There have been some really interesting executive moves in the last 24 hours. Mike abbott, the former apple executive, is leaving and then they hire thiss former tesla executive to be the head of manufacturing at gm. Just the idea of, were going to throttle back on battery vehicles to some degree and share some cash with shareholders as gm has done. Stock has had a decent run. It is interesting. You wouldnt think that you would make that call if you thought the economy was going to, you know, obviously, stumble hard. Finally, musk, i think, did make his way to the german giga factory in the wake of that arson attack. They got power back now, looking to get more clarity on when they can resume production. The other story i would add, guys, is this piece out of the South China Morning Post about byd pricing their new compact suv at the equivalent of 1,000 u. S. 12,500 for a compact electric suv. Amazing. Wow. Which has implications its like a disposable car. Exactly. Like so many things from china. Clothes, for a year or two, get a new one. Fast fashion for the cars. I was going to ay, this next model that tesla is looking to come out with is kind of a compact suv. The model 2. Its tough to be profitable as it is. Were going to talk to dan ives next hour about why he thinks this negative sentiment of tesla is overdone, sees a trillion dollar valuation still possible as these new lower cost models roll in. Channel checks, carl. Hes been doing his channel checks. I did rent a tesla a couple of weeks ago. Whatd you think, mike . It was fine. It was a real soupedup golf cart. Massively impressed with the super charger experience. Thats good. Okay. Guys, alphabets back in the green for the year. Kind of interesting to note, given a lot of concerns there as weve discussed. The innovators dilemma, sort of a bigger story playing out over a longer period of time in terms of what they will do as they respond to generative a. I. Meta shares are down. Its been an interesting week for meta, down, up, down, in part, you know, they were the beneficiary, seems little doubt, if, in fact, tiktok were to be banned in the u. S. Despite what may be a positive vote from the house today, sending that legislation on to the senate as Emily Wilkins detailed, theres still quite a ways to go here for this thing to become law. Meta would be a beneficiary. Donald trump, former President Trump, agrees, said as much on monday, which is why hes reversed himself on his ban of tiktok, but you guys notice, meta shares on monday were down sharply. Oh, yeah. And you did wonder whether, in fact, was because of some of the comments that former President Trump made on squawk box. I wondered that too. I didnt know either, mike. But i heard from some people they thought it was. You cant disprove it, for sure, and its plausible. I would just say its very difficult to separate out the fact that that was day two of the momentum, you know, gut check of that weekend. Momentum unwind a little bit. Meta, if you look at the s p 500 momentum basket, its nvidia, 12 , meta, 11. 4 . So, its hard to know if it really was that. We did bounce yesterday in those categories. It did, and it had a decent bounce yesterday. Guys, a story, again, from earlier on monday that i didnt really pay close attention to, even though we had focused on it a bit, was when Choice Hotels gave up its bid to try to acquire wyndham, it was a very aggressive offer, there was concern that had been raised numerous times by wyndham about the antitrust effect. An interesting choice here by the ftc yesterday that i can rarely remember seeing in the past. They didnt comment on the potential antitrust ramifications of this deal while the while choice was trying to buy wyndham, but they chose to come out yesterday and say, hey, you know what, we were taking a close look at this thing, and just so you know, weve thought it would have been a really serious competition question that would have been raised. And so, the fact that they decided to not pursue it is a win for consumers. I thought that was odd. Given there was no reason for them to weigh in whatsoever. They had not doneso during the course of choices attempts to acquire wyndham, and by the way, it wasnt clear that it even fell apart as a result of antitrust, so that certainly was one of the reasons raised, key reasons raised, as to why they didnt want to engage. It was just that Exchange Offer never found takers. Thefr got interested in this deal. I mean, in theory its weird they chose to weigh in. I guess it would seem gratuitous unless they felt theres value in putting that flag out there and saying, this is the kind of thing, if youre considering, we wouldnt look too kindly on. That is the reason. That is the reason. Theyre trying to stay relevant, i guess, over there. Meanwhile, goldman initiating some of the cruise lines. They go to buy. Rcl and ccl. They talk about this bear case thats been emerging regarding a winddown of the pentup demand but they argue theres better pricing initiatives, more structural things going on in the business to keep them bullish. The other thing is this page one New York Times piece about that Alaska Airlines flight where the door panel blew out. The times reporting that engineers were concerned enough about the flight that some wanted to take it out of service. Airline decided to keep it in service long enough to get back to portland. Not having an impact on airbus, although boeing shares lately are almost retracing the trip up from the october lows. Theyre under some pressure. Just a ton of street commentary about it. For the most part, it seems as if people are just saying, its productions going to come back. This cap that on production in terms of macx is not that relevant, but it still defers this moment of real lush Free Cash Flow generation that is the basis of all the bullish calls on the street. I mean, you know, you look and say, i think it was baird, who still likes the stock, saying, okay, the 10 billion in Free Cash Flow may be more like 2026. And thats the basis of their price target. Its been a struggle for boeing to kind of find its footing because it seems like the second round of all this when we have to rewrite the schedule for when they were really going to be profitable. I guess the other question is, just given the pressure on management and scrutiny and everything, can they be a company that says, were firing on all cylinders, just harvesting a bunch of Free Cash Flow, and maybe its not the biggest priority as it once was. You got to show that youre spending to make sure that production is locked down. Does there become a question at some point about the boards culpability . What exactly has been going on longer term at this company . Given the commentary of the customers, the ceo of the airlines, turning up the heat, it should be a question. Lobok at what southwest said yesterday. Thats a boeing story. Finally, mike, i wonder if youd touch on bitcoin. 73,000 today. Alltime high. Lot of discussion about how much the feds watching this as some of these etfs cut fees to draw in those flows. I dont know if the fed has first of all, i guess you would look at it as a, you know, does this show frothy financial conditions and some level of speculation that they wouldnt want to stoke by cutting rates . You know, arguably, i guess its part of that equation. And then, the question of, you know, financial stability. I dont really think it plays into that. I dont think theres a right or wrong price for this thing, never was at 12,000 or at 60 or 70. Its much more about goals at a record, people wanting to find alternatives and as equities go higher, you know, in theory, if youre rebalancing into the Everything Else basket, it seems to be there. So, i dont know. Ive certainly not been right about it up to this point, though. Well keep an eye on it. Meantime, well watch bonds as well. We mentioned elevated yields earlier on today. We will get a 30year note auction after the tenyear was a little sticky. Dow is up. S p, split. Be right back. You know doug, ever since switching to workday youve been a real rock star. Rock star . What do you know about rock stars . Billy idol . I mean wheres the skintight leather . My shoes are leather. Wheres the unnecessary zippers . That thing billy, rock star is just how doug feels when he uses workday. Thanks, rory. Ill show you rock star be a finance and hr rock star. Workday. For a changing world. Billy idol just stole your golf cart keep your eye on lilly today, drifrg prescriptions direct to consumer via its service, lilly direct. That includes zepbound. David ricks was talking at the Economic Club in new york yesterday, saying Consumers Want a direct relationship with the product provider, because i havent been to a Department Store in 15 years, and a pharmacy is like a Department Store. Interesting. Certainly no love for the pharmacy benefit managers and everybody else. No. Mark cuban will and a pharmacy is like a Department Store. Interesting. No love for the pharmacy benefit managers and Everything Else. No. Mark cuban will tell you that. Dow is up almost 70. Back in two. Morikawa on 18. He is really boxed in here. Not a good spot. Off the comcast business van. Into the vending area. Oh, not the fries wheres the ball . Anybody see it . Oh wait, there it is back into play and. Aw no, its in the water. Wait a minute. Are you kidding me . You got to be kidding me. Rolling towards the cup, and its in the hole what an impossible shot brought to you by comcast business. Welcome back to squawk on the street bob pisani is here taking a look at the open so far at least. Bob . Its one of those days again where lets sell off technology, buy into the broader market. Look at whats going on today. I dont find it terribly disturbing. Its healthy for the market. Energy stocks are doing better. Bank stocks, material names doing better overall. Consumer staples were up. Tech is down. You can see the sectors whats moving. The big cap semis this is a day you pull back on some of the biggest performers for the year here. So you get amd, micron, nvidia, broadcom moving to the down side. All a knee jerk reaction moving down. The market is sort of obsessed with two factors right now, that is quality and momentum. They have diverged. They are the same thing at this point. If you look at the quality leaders out there, showing up on quality screens, high return on equity, stable return growth, those things, nvidia, meta, broadcom shows up. Lilly, amazon, microsoft shows up. Visa shows up all the time. And then you look at the momentum, its virtually the same thing. So quality and momentum have converged this year. You see, the same thing. Nvidia, meta, broadcom, lilly, amazon, microsoft, visa. All converged together. What that means is the market is really obsessed with a small group of names. So these exist in the classic etf, quality etf, momentum mtum. And they have traded in tandem pretty much this year. You can see the quality doing better, mix is different, sometimes nvidia and meta has a stronger mix in one versus the other. But you get the idea. Theyre essentially moving in tandem. I dont think this is necessarily a bad thing. But its one of the reasons you get such tight movement in a small group of stocks when the market converges around two factors that have become very important. The other two factors that used to move the mark, which is value and small caps have fallen away as a major issue. Heres where we are right now. This is what you call a frustrating market in a good way. Were moving forward, everything is doing well. The market is broadening out a little bit. But its frustrating because it feels the same way, what are we, 16, with 17, 18 new highs this year . Its hard to create a narrative around this. Theres no catalyst for a meaningful pull back. We have to have a change in the macro narrative. The underpinning. So you have to have some kind of economic slow down that we feed to worry about thats obvious in a series of numbers that show up. Or we have to have an inflation worry reaccelerating causing us to be worried about the Federal Reserve coming out and increasing rates. Neither of those things are happening and the cpi didnt change that narrative. Friday we get the quarterly expiration of stock index options and futures, triple witching. Mike we talked about it for years its less impactful because of the monthly, weeklies and dailies. When you get Straight Line up in the s p 500 its not interesting when it rolls over because everybody is zeroed out on their positions. No things stick out. You dont have weird positions betting on big drops, big moves on the upside. So its unexciting. Its boring but in a good way. A lot of call options that are in the money and you have to see how people may be repositioned around that in the leading stocks but youre right doesnt seem like a lot. Thanks, bob and mike santoli. Well take you to d. C. In the next hour to watch for the house vote to ban tiktok. Dont go anywhere. Ocean view . Of aruba . Huh. This listing is misleading. Well, when at t says we give businesses get our best deal, on the iphone 15 pro made with titanium. We mean it. Amazing. All my agents want it. Says here. inviting pool. Come on over too inviting. Only at t gives businesses our best deals on any iphone. Get iphone 15 pro on us. theyre waiting for you. Hey, do you have a second . Theyre all expecting more. More efficiency. More benefits. More growth. When you realize you can give your people everything, and more. Thank you very much. [applause] ask, now what . Heres what. You go with prudential to protect, empower and grow. With everything you need to deliver, you guessed it. More. One more thing. Whos your rock . Learn more at prudential. Com good wednesday morning welcome to another hour of squawk on the street im Carl Quintanilla with leslie picker and david faber live at post nine of the stock exchange. Sara eisen is on assignment. Mixed action this morning as we handle some earnings but work through an air pocket of echo data ahead of ppi and retail sales tomorrow. Yields elevate as the ten year approaches 418. A big day for tiktoks further here in the United States. Lawmakers will be voting this hour on a bill forcing the chinese owner, byte dance to divest the social media giant or close it down because its banned. Thats about 170 million americans right now who use the app who might no longer be able to do so. Theres a ways to two here. Lets get to emily will kins and Julia Boorstin theyve been following the story closely. But first, emily on capitol hill, a quick road map on the road ahead. Lawmakers are wrapping up debate here, expecting the vote to happen any minute on the bill. It is expected to pass in the house but there are a few things to watch for here, namely how many lawmakers get to yes. The more who support right now, the more pressure that is on the senate to get this done. Theres not a guaranteed pass through the senate at this point. This bill got a green light last week in a 50person committee. Be unanimous because some conservative and progressive lawmakers are coming out against a bill. Just a bit ago we saw alexandria ocasiocortez tweet that she is a no and the concerns how quickly this bill moved. Before last week no one knew about the legislation. And she said there are serious antitrust and privacy questions here and adds any National Security concerns need to be laid out to the public prior to a vote. Another consideration for some lawmakers today are the political implications. Not just with all of the voters who use the app but also donors. Our colleague Brian Schwartz reports that republican megadonor keith ribost is vowing to cut donations for any lawmaker who does not support the bill. Im curious. Is there a sense it sounds like theres interesting bedfellows in this barbell approach with the more liberal members of congress and the more conservative members of congress coming out in opposition. Is the same true in the senate as well . Its kind of yet to see exactly how this unfolds in the senate. Because weve heard different types of concerns there. One thing i got when i talked with senators yesterday, they said, look, past measures and motions that have tried to ban tiktok have been found unconstitutional because theyre too targeted. Seen as directly punishing a Single Company thats unconstitutional. Thats a concern with the legislation. Youre hearing it from the progressive members, more moderate members and more conservative members. It does remain to be seen how it shakes out in the senate. Ive had a number of senators tell me they knew the bill existed but havent given it a close look and plan to do so after the house vote today. A lot has been written on the lobbying efforts on the tiktok side. Are you seeing a similar thing from other rivals that would benefit from a ban . The likes of snap or meta . At this point theres certainly these Big Tech Companies in one hand stand to benefit. On the other hand theres concerns raised by lawmakers that this could be a slippery slope. If you see the banning of one type of social media you could see the banning of others at this point. We havent seen the Big Tech Companies out in front of this one they havent been the dominant voices part of this conversation. But, of course, they have influence and sway on the hill. We know that lawmakers are considering the wider landscape when they vote today. The journal pointed to the influence of a gentleman named jacob helberg. I dont know if you have run into him emily but in terms of focus on Cyber Espionage which obviously this plays into, and we know the chinese have been so aggressive when i comes to that, eamon javers has covered that for years as well. Certainly an important part of the conversation. Absolutely. The concerns are about the consumers datas and what china can do if they get ahold f of it. And certain topics dont appear on tiktok as much as they do on instagram or facebook. And there are also concerns just about what the app is telling its users. You saw the concerns get amply f amplified last week when there was a message that they were trying to ban the app and they were urged to call their lawmakers. And for a lot of lawmakers they realized the power tiktok could yield if they put it out there. The real concern, i think, is the information that tiktok was able to put out and what happens if tiktok put out information that either wasnt accurate or was, you know, had nefarious purposes to it. Fascinating. Of course, this all playing out in an Election Year which is a little more than six months away. Itll be interesting to watch those developments as well. Emily, thank you. Well check back in with you later this hour. Turning to an impact a possible ban would have, lets get to Julia Boorstin what it means for the social media names. Is this seen as a zero sum game if tiktok goes away other social Media Companies benefit or are they nervous as well given some of the broader implications if this bill were to pass . At this point this is really about tiktok. And the question of where would those ad dollars go. Its worth pointing out how fast growing tiktok has been as a force in digital advertising. Its revenue grew 31 last year but represents about 2. 8 of all digital ad dollars in the u. S. Last year. Which means it has a lot more room to grow. So just less than 9 billion in revenue last year compared to 63 billion in revenue for meta. So this is a small but fast growing player. The consensus among analysts if tiktok were to be ban, a lot of things have to happen to get us to that point, meta would be the primary beneficiary because those ad dollars would shift to meta, perhaps also to snap. And some analysts are speculating we would see Companies Like netflix and disney plus benefit as people figure out what to do with the 75 minutes a day theyre currently spending on tiktok on average. You see time shift over to entertainment as well as social media apps and the ad dollars shift over as well. Were focussed on the vote itself which has begun. We can see things lining up. Expectation is that its going to pass the house at this point. But its fate in the senate certainly a lot less certain. Can you see the votes coming in. In 14 minutes remaining for this vote to take place. 17 republicans yea, 11 democrats yea and very few nays so far, just about 5 across both parties. 28 yeas and 5 nays across both. Maybe, julia, well bring you back to this conversation. Id love to hear your perspective on something that carl asked emily, which is this idea of the rival social Media Companies ramping up their lobbying efforts and their take on this whole thing if they are set oh, apologies, now im told emily is ready, she is standing by here and can help make some sense of this. What can you share with us, emily . Leslie, the vote just starting out, not surprising members coming in. Its interesting were seeing the bulk of folks vote yes so far on this piece of legislation. We are seeing three republicans and three democrats vote no. Not surprising knowing what we know about the strange bedfellows here. The hard line conservative members raising concerns about the bill violating free speech and some of those same concerns shared by progressives on the left. So well get a clearer sense as the vote goes on as far as how many individuals wind up voting no. Remember the idea here is for the vote to be as strong as we can. We already know that its likely to pass. The question is by how much. The more you see the support here, the more pressure is going to be on the senate to figure out a way to get the bill done. Whether its the Senate Taking up the house bill or taking the house bill, maybe adding their own amendments and measures to it and trying to get that back to the house. And the president said if it gets to his desk he will sign it. While we wait. A question about the math in the house after ken buck said yesterday he would retire next week, the gop majority goes to 218 we end up with a special in colorado. Things could get interesting in the speakers efforts to pass things through regular order, right . Absolutely. This is why youve seen so many bills, including this one right now, that did not go through regular order. Oftentimes what happens before a bill comes to the floor, if they just need a majority vote it needs to go through the process calls the rules committee, basically a lot of these bills they divide the Republican Party and cant get the support to pass the committee. So they come to the floor and you need two thirds of votes, which means you have to have strongly bipartisan bills, what were seeing with this bill, what we saw last week with the bill to partially fund the government. What were expecting to see next week with the bill to partially fund the other part of the government. Its difficult right now for Speaker Mike Johnson to get bills down with only republican votes and thats going to get harder. That could be a problem for him. Right now hes focused on the deadline stuff. The stuff that has to get done, government funding, but after that his office wants to move to messaging bills, things republicans can run on for the 2024 election. Distincts they can make between themselves and the democrats. Telling people what they can get done. Its difficult to pass those bills with a two vote majority. Youve seen things like majority leader Steve Scalise having to leave to get cancer treatment. Youve seen other members leaving for family mematters, being ill, having kids. So it raises the question for how much theyre going to be able to get done to really move their conservative message forward. Emily, thanks for that. And for, obviously, the continued focus on tiktok. Were watching the votes come in over the next lets call it ten minutes or so. It does appear, of course, its going to pass the house. Thanks to julia as well. Moving on and staying on the same subject our next guest said there are legal weaknesses with the bill. Joining us is alex stamos, a former facebook chief Security Officer and yahoo information chief Security Officer. Good to have you. Whats your issues with the bills as we watch it passing the house . What do you see thats wrong with it and what would you like to see instead . It looks like the bill is going to pass the house and now the senate has a decision to make. I think political exenpied yen i would be the easy thing and pass a pretty much identical bill. But i think the house is opening up a possibility of a conversation in congress about doing something more comprehensive. Theres some Serious Problems with this bill. One, its really focused on speech. It specifically targets platforms that carry speech. Speech is something that is protected in the United States under the First Amendment. And the other thing it does, its not actually enforced against tiktok or byte dance its apple and google forcing them to take an app like tiktok out of the app stores. So as a result you end up with three groups, tiktok users, byte dance and apple and google and other app store makers all with the ability to fight the bill and an economic incentive for google and apple to be the ones to foot the bill for five years of litigation on this. I worry about tiktok and the prc ownership. We should do something and we need to protect americans datas from companies controlled by the peoples republic of china. Its because of that concern we need a bill thats legally focused and focuses on the privacy issues instead of speech issues. Your expectations as we watch this bill pass the house most likely, gets passed by the senate and signed by the president. Its going to end up in the courts you said five years meaning the ban would not go in effect and you would play out this free speech lil litigation for that time. Yeah. If the bill passes as it is no the biggest winners are the lawyers they win a lot when things like this happens. Theres years of litigation from different parties. Tiktok will be part of it but you have American Companies footing the bill because apple and google do not like the idea of Congress Passing bills telling them what they can and cant put on their phones. Which raises First Amendment issues and other issues around the protections American Companies have to operate in the way they want. I think what would be much more fair and deal with the problem better would be a federal privacy law that first standardizes all of these different privacy laws passed by the states. This is an economic problem for lots of companies we end up with a patch work of laws across the United States and its hard for them to figure out how to operate in the u. S. And second applies to every company, protects americans data and says the information cannot be stored in certain adversary Companies Including the peoples republic of china and russia. That affects other software companies. It took years for the first complaints about tiktok to act. Its inconceivable that congress is going to pass a bill every time we end up with a Chinese Company posing this risk. We need something more comprehensive with Chinese Companies and giving American Companies good standard privacy rules for the entire country. Whats the bigger National Security implication here . Is it the data in the hands of the prc, which tiktok has said they have ring fenced u. S. Data at this point. Or is it the content being pushed onto platforms that american viewers are controlling f scrolling through. Therefore hindering the u. S. Election. I heard supporters of the bill push that narrative. Do you think theres any legal, defensible truth to that . I think theyre both legitimate concerns, right. I do think that there are legitimate concerns around tiktok manipulating the algorithm to change the conversation in the United States. Theres not great evidence of that, though. What there is evidence of that you can bring up in court, theres evidence of tiktoks data, which was supposed to be protected, being accessed by chinese employees for things that theyre not supposed to do. We have hard evidence that byte dance has access to tiktoks data. Thats something you can take to court, something you can fight, and that is something for which byte dance does not have the possibility of bringing up First Amendment issues. We have a broader set of companies than social Media Companies that collect data that is critical. The truth is were in a cyber hot war with the peoples republic of china right now. Constantly attacking u. S. Companies, constantly using cyber as an economic weapon and they are prepositioning assets to possibly attack the American Economy to slow down our response in a war in the pacific. Thats something uncovered over the last year, prepositioning back doors in the places which the United States would respond to a possible invasion of taiwan or some other conflict with china. So we have to do something, but broader than simply target tiktok. If this bill passes nothing is going to happen for years because it has some really glaring weaknesses that tiktoks lawyers are going to be able to exploit. Alex its something were discussing for quite some time to come and, appreciate your insights and views here. Thank you. Ken griffin on the biggest risk not priced into the market right now. A rare move by jamie dimon. Weighing in on the fight between iger and peltz. What crypto is doing to stop an exodus of outflows. Squawk on the street is back after the break. So this is pickleball . Its basically tennis for babies, but for adults. It should be called wiffle tennis. Pickle yeah, aw whoo these guys are intense. We got nothing to worry about. With e trade from Morgan Stanley, were ready for whatever gets served up. Dude, you gotta work on your trash talk. Id rather work on saving for retirement. Or college, since you like to get schooled. Thats a pretty good burn, right . Got him. Good game. Thanks for coming to our clinic, first ones free. Welcome back to squawk on the street. Our sara eisen sat down exclusively with citadels ken griffin in a wide ranging interview yesterday talked about the biggest risk he sees out there. Take a listen. I think the Biggest Issue not priced in the market is the u. S. Credit. U. S. Credit . U. S. Credit. Triple a credit. Its not triple a anymore. I wish it were triple a. You think that should be better priced in bonds . I think its just not part of the day in and day out dialogue. That allows washington to continue to spend at levels that are borderline insanity at this point in the economic cycle. Were talking about a budget next year of 7 trillion, spending is up about 20 in two years. This is just out of control. And unfortunately, when your sovereign markets start to put the hammer down in terms of discipline, that could be pretty brutal. And theres no country thats going to bail america out. We have to right our own ship. Theres no imf for the United States of america. As long as people still want our botchends and dollars and w the reserve currency, its okay isnt it . Thats the key question. Will we start to see a loss of confidence in owning an ever increasing stock pile of u. S. Debt, particularly amongst countries with whom our behavior has become adversarial over the last couple of years. So its an interesting question. We have to turn more and more to funding our domestic liabilities with domestic money. Do you think treasuries are a risky bet right now . I dont think theyre risky at this moment you asked whats under appreciated by the marketplace. I think that risk is under appreciated by the marketplace. Fascinating. In no small part because of the downgrades centered around not just debt ratio owe but political dysfunction on capitol hill. Its an interesting point and hearing it from ken griffin because theres been a louder drum beat about the banks, the notion its underappreciated by the market. We need to Pay Attention to this. Its an Election Year so well see what that means. But interesting to note that more and more people seem to be coming out to draw attention to it. Weve heard these concerns for many years and they rarely, if ever have actually shown themselves in a significant move in rates in the treasury market that in a way would promote a crisis. Last fall looking at the treasury options in part because of what has been high spending levels. But, you know, hes talking about china there, too. Coming up in everything at this point. Which had been a large purchaser of our treasuries and is not any longer. If sara was here shed tell me the latest numbers up to the minute. I dont know what they are. But that has reversed. And sara god kens views on the Regional Banks and struggles with names like nycb, which announced the Million Dollar infusion deal. Listen to that. The question with every investment is whether or not its the right price. Thats the fundamental of investing. A building where rents have come down may still be attractive at the right price. And the risks intrinsic in your Community Bank i think this is the right price. To be clear, steve has an incredible record investing in the banking space. Hes very thoughtful on these issues. If you wanted to know blowbyblow how he thinks the banks should best be run to address the issues at hand, ask him to join you live on tv. I did. There are very few people in the world who are as talented as he and his team are for opportunities in the Banking Sector of the economy. Do you expect more ripple from the Regional Bank fallout . Reporter well see a continuation over the next couple of years as both commercial and real estate struggles and the broader economy encounters various different setbacks. Well see more of these stories over the years to come. Of course we did have Steve Mnuchin on the show last week. And, the u. S. Commercial Property Market is bottoming out, expects to invest more this year. Wont be v shaped. Important to note that ken griffin was a coexist investor alongside Steve Mnuchin. In terms of rent stabilize, one of the key issues of new york Community Bank well be inside a rent stabilized apartment tomorrow and be broadcasting to explain what weve seen to be a 70 decline in valuations for these buildings due to a 2019 law that changed the amount that these landlords can charge for rent. Therefore theres a massive trickle down effect in the bank corp. And east coast specific banks with exposure to this area. It was once seen as a very, very safe bet in terms of lending counter part and has deteriorated. Until the Progressive Legislature in the state. Changed it. Yes not allowing landlords to do upgrades and things like that and therefore not raising rents. Many buildings may suffer as a result because tayrheyre not putting money into it. Well show you what it looks like when someone moves out of an apartment theyve been in since the 1980s. And how much it costs to upgrade it. Stocks hanging in there at that level it found after the announcement of the investment. 350 or so. Exactly. 360 or something. Were expecting the 10k within the next few days if they do file within that extension. Dollar tree on pace for their worst day in years. Find out why after the break. Back in a moment. Investment opportunities are everywhere you turn. Do you charge forward . Freeze in your tracks . Or, let curiosity light the way. At t. Rowe price, we ask Smart Questions about opportunities like advances in healthcare and how these innovations will create a healthier world tomorrow. Better questions. Better outcomes. Welcome back to squawk on the street. Some breaking news now in the house that there are enough votes to pass a bill requiring tiktok to either divest from Parent Company byte dance or be banned in the u. S. You are seeing a majority of lawmakers voting for this. Although at this point you have more than 50 lawmakers who have voted no. We know thats a coalition between hard line conservative and progressives. Strange bed ffellows but they share concerns about the bill. And you have jim hines the top democrat on the Intelligence Committee saying other countries they try to block what their citizens can hear and read and see, the u. S. Does have National Security concerns about tiktok but the solution isnt to ban it. After the house, the bill moves to the senate. There are concerns about lawmakers but the fact that this has a strong bipartisan vote could be enough to pressure senators to find a path forward. Guys . Looking at that himes comment now. They shutdown social media platforms we do not but the vote didnt go that way. Well watch the senate side now. The s p retail ticker xrt trying to build on yearly gains up more than 20 over the last year of trading. One name not helping the group is dollar tree. Shares were sliding earlier after the retailer posted disappointing results, announced it plans to close nearly 1,000 stores shares are up nearly 15 this morning. Its three weeks until shareholders decide whether they want to support one or both of try anns nominees to join disneys board. Both sides are fully engaged in arguing their side of the story, as you might expect. Battling it out at this point. Of course tryann continuing to make the argument this is a stock outperforming the s p over any number of time periods even when it was under the leadership of bob iger before that two year period that bob chapek ran the company. Saying its a management that requires more oversight from the boat and they say that nelson peltz and jay rusilo would be what was needed for that o oversight. Disney and bob iger spending time in front of large sha shareholders, in boston, baltimore, wherever they may be. You also have the meetings with the very important Institutional Shareholder Services company or proxy advisory firms, thinking of Institutional Shareholder Services, iss, that advice many of these index funds or pass siive funds on how they should use their votes. I cant remember a time which jamie dimon has chosen to weigh in on one side or the other in a proxy fight. But this is a time he did, deciding to share with me a statement im happy to share with you as well in terms of his support for bob iger saying a hes a firstclass executive, an outstanding leader who hes known for decades. Knows the media and entertainment business cold. Points out its a complicated industry filled with talent requiring the unique expertise and engagement skills that bob possesses. Putting people on a board unnecessarily can harm a company, i dont know why sharedholders would take that risk especially given the significant progress the company has made since bob came back. I spoke to shareholders, i want bob in there, hes doing a good job im paraphrasing those conversations. I wouldnt mind peltz as well because hell hold managements feet to the fire. You listen to jamie dimon, its one director doesnt make a difference out of 13 but it does. And it can make things difficult for your management team. I would offer that up in terms of things ive been hearing as well when it comes to bob igers view of peltz and Ike Perlmutter whos the main owner in the tryann ownership stake. And theres perlmutter, they dont get along at all. Theyre at odds with each other in a significant way. Its well known that iger would view any representation of perlmutter on that board negatively. Such that has at least and again to the risks that mr. Dimon brings up, one risk would be would bob iger say im out of here and choose to actually exit his position as ceo. That, leslie, is a possibility here should tryann prove successful. We have a ways to go yet to see what happens here and those large shareholders, you know, having covered these battlies i the past is important. I cant think of a time that dimon or any other large bank ceo has weighed in on these proxy facts. When i first reported this, i also added the fact that j. P. Morgan is an adviser to disney. So that is certainly, at least needs to be considered. But i cant remember jamie ever choosing to weigh in no matter who j. P. Morgan may be advising or representing. Although i will say that dimon once pitched an idea for a movie to iger and it was about a woman who couldnt pick men well so she had a board of directors of women who would be testing men and picking out her husband. So maybe thats kind of a i think iger said no thank you. He did not green light that he didnt green light that script. Dimon i guess is loyal regardless. We have to get the picture made. I like the idea. Id watch that. Youll be in it, david. Why not. Happy to reported on it. Well discuss the fallout from the house vote that could ban tiktok here in the United States. P an exclusive you dton want to miss, alex karp alongside sara eisen in florida talking tech regulation. That begins at 11 00 a. M. Eastern time. Sara eisen in flor tech regulation. That begins at 11 00 a. M. Eastern time. If youre looking for official word on that tiktok crackdown bill we have it. The house has passed House Resolution 7521 by a vote 35265. One voting present needed a two thirds majority for passage. Well turn our attention to the senate side but an overwhelming vote by the house on that crackdown. Danives, web bush security analyst joins us this morning, with a note looking at the impact of a tiktok ban. Something weve been trying to work through as we kept our eyes on the hill. I want you to ask you to give the calculus for passage in the senate. If it goes through what happens . Theres a retaliatory in terms of china, what do they do with apple, tesla, is this acquired by big tech . What could the valuation be . But then we believe 25 chance this ultimately passes just given the regulatory spider web we see. We believe this is a slippery slope. Its a watershed moment you are playing a little with fire going down this route. And we think this is within the beltway its very you cant put the genie back in the bottle we need to see how it all plays out in the coming weeks in this drama. Would you be rerating meta, snap, higher or lower . We believe here, based on all of our work and the beltway and advisers, 25 chance this ultimately passes. With that said its incrementally positive for meta, snap, others. But i think we need to see how this all plays out over the coming weeks. No doubt if i go back a month ago the fact were here and the house passes it, given the pressur pre pressure that wieve seen, itsa surprise. I just got back from china and asia and there aretensions rising this is not what we want to see in beijing. What does it mean for the retaliatory measures china could place here for meta or snap but then china retaliates against u. S. Tech what does that look like . For cook, musk thats the issue here. Its not roses and rainbows for apple and tesla in china. The retaliatory is what you worry about here, not meta and others but specifically for apple and tesla. And thats why were saying youre playing with fire. This game of high stakes poker its great for grand standing here but it could have massive implications from a retaliatory in terms of the u. S. china tech war. How would we react if tesla you have to divest your operations in china to byd, we would not react well to that. But its unclear, i should put up my own reporting theres any chance that the chinese would allow byte dance to cesell tikt to another Company Including the source code and algorithm. Thats not going to happen. Before we let you go. I want to ask you about tesla, wells fargo questioning discounts, and price per car coming down. We agree. Respect the analysts on the call but i think right now, overly negative discounted in terms of the tesla story. Near term unit is going to be soft for 1q, getting back from the region i believe price cuts are starting to subside in china. Thats important. The next six, nine months we look at this as a golden buying opportunity for tesla, over the next two, three years, especially with a. I. , rather than the time to throw in the towel. The new york city cab driver is bearish on tesla here. What does that mean . Everyone is bearish, the bears have come out of hibernation mode i get it but we believe now is not the time to throw in the towel on tesla, apple. I thought you meant the taxi drivers werenbungt yi teslas. Up next sally joins us to weigh in on the markets. Her firm hitting a major milestone today squawk on the street back after this. Our awardwining trading platforms. Unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. And sharpen your skills with an immersive Online Education crafted just for traders. All so you can trade brilliantly. This is our future, ma. Godaddy airo. Creates a logo, website, even social posts. In minutes how . A. I. impressed ay i like it who wants to come see the future . get your Business Online in minutes with godaddy airo [sfx wind, rain and rolling thunder] [music up and under] crowd get in [crowd cheers] american announcer justin rose has done it. British announcer hes a 17 year old phenom. Nobodys born with grit. British announcer this is hard to watch. Its something you build over time. American announcer thats 21 missed cuts in a row. [car trunk slammed shut] but creating a future only you can see, demands relentless pursuit. 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Welcome back to squawk on the street a mixed day for stocks as the dow and s p come off the best day since february. Sallie krawcheck joins us at post nine. Lms just reached a milestone, 2 billion in assets under management. Congratulations, sallie. Thank you. Its great to have you because yesterday was equal payday. This is womens history month. Youve been talking about what you call the feminzation of wealth. Yes. What do you mean . This is all great, nothing bad happens when women have money and it was founded for women to help women invest. And investing is the way for individuals to build wealth over any period of time. Were thinking a lot about the great wealth transfer that occurs as the boomers move to the great beyond. Yes, theyre giving their money to the kids but often giving it to their wives. It went be too much years before women have the majority of the wealth in this country. Because their spouses die earlier . Thats yeah. Half marriages end in divorce, women live six to eight years longer than their spouses. Womens longevity is going to do the work to complete. You mentioned white space, working at the banks you saw a need here. What is yeah. About the way you advise women thats maybe different from the services they could says, which is, huh, men invest more than women do, its that women are risk averse. We all think that, right . What that is saying is, what were offering is terrific. Theyre just not buying it. And at elevest, we were the first that said, what if we build something that centers women. Its as simple as having women financial advisers, but also having impact in investing. Women are saying, i want to invest for financial returns and impact returns. And its things like having an investing algorithm that recognizes gender. Why is that important if youre a woman . Because we live longer we earn less. Those things matter. And a bunch of the little things. Men will invest through jargon, and women will stop and say, i better understand that. Its really in every big and little way, building it for them. In this current environment, are there different types of advice that women are seeking . And is there different advice that youre giving them . Yeah. So, we are very much about asset allocation. We believe strongly in it. But what we are hearing is, there are points in my life, as a woman, when i really need an elevest. So we recently launched, for example, a divorce Financial Planning package, right . I mean, super important as someone goes through that, where historically Womens Wealth decreases when they go through a divorce and mens increase. And an inheritance Financial Planning package, a buy a home package. We approach this in a very goalsbased way. Because we find that one, its needed, and two, its extremely motivating as well. Youve been doing this now through a couple of cycles, and i wonder how women think about think differently from men when the market is setting lows versus im so glad you asked that you know women are better investors than men, right . Yes, yes. And in good part, thats because they stay the course during down markets. And we saw that in realtime at elevest, when a couple of years ago, the market was significantly shrinking, we grew through that. And a good part is because women absolutely stayed the course. They dont check their accounts as much, they certainly dont look to trade as much. Its by staying invested, that can be and at highs . Oh, yeah, the majority of our clients have recurring deposits into their investment counties. Theyre dollar cost averaging, even if no one knows what dollar cost averaging is. To your point, women are living longer, have a longer time horizon. Sallie krawcheck, thank you very much for beingere hand congrats on that 2 billion aum milestone. I guess well take a break backed by over 145 years of risk experience, helps investors meet their goals. Pgim investments. Shaping tomorrow today. vo what does it mean to be rich . Pgim investments. Maybe rich is less about reaching a magic number. And more about discovering magic. Rich is being able to keep your loved ones close. And also send them away. Rich is living life your way. And having someone who can help you get there. The key to being rich is knowing what counts. The future is not just going to happen. You have to make it. And if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality. The all new godaddy airo. Put your Business Online in minutes with the power of ai. Bitcoin just keeps hitting record highs, as a herd of institutions launch these new etf products and now a race to the bottom on fees. Our kate rooney is watching that this morning. Hey, kate. Carl, good morning. These bitcoin etfs are so similar, issuers are now reaching for new ways to attract investors. Its becoming a fee war on one hand, and a brand war. These funds have had a banner debut so far, roughly 10 billion of inflows across the group, except for gray scale. That is the outlier hemorrhaging money with roughly 10 billion of outflows. It is still the biggest, since it converted from an existing publicly traded fund, but gray scales fee has been the big hang up, around 1. 5 versus 0. 2 for the rest of the herd out there. Its now looking to launch a spinoff, a mini etf that is a lower fee, a way to compete on cost, while still keeping the fees on their core product. Vanec. Has been near the bottom of the list and its now slashing fees to zero or waiving a fees. And household names like blackrock and fidelity are the big winners, topping 10 billion and 6 billion respectively. And jpmorgan with a pretty bullish stake. They say this is just the tip of the iceberg when it comes to capital allocation. Theyre predicting 220 billion of flows to these funds in the next few years. They say it can be a, quote, tremendous multiplier on bitcoins price. Theyre calling for 280,000 on bitcoin. They also say that they were wrong on the etf being what they call cannibalistic to coin base. You have the ceo of vaneck coming on to talk about all of this. Coinbase also doing a convertible of some kind. Not a bad time to raise some equity. Kate rooney, dont miss the ceo of palantir, alex karp. Backed by over 145 years of risk experience, helps investors meet their goals. Pgim investments. Shaping tomorrow today. Rylee from rylees realty hi this listing sounds incredible. Lets check it out. Says here it gets plenty of light. And this must be the ocean view . Of aruba . Huh. This listing is misleading. Well, when at t says we give businesses get our best deal, on the iphone 15 pro made with titanium. We mean it. Amazing. All my agents want it. Says here. inviting pool. Come on over too inviting. Only at t gives businesses our best deals on any iphone. Get iphone 15 pro on us. [thunder rumbles] the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . [thunder rumbles] at pgim, finding opportunity in fixed income today, helps secure tomorrow. Our timetested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. Pgim investments. Shaping tomorrow today. Good wednesday morning. Welcome to money movers. Today, lawmakers in the house pass a bill that could lead to a potential tiktok ban. Well get the latest from washington, talk about whats next in the senate, and what it means for competitors. Then, exclusive with palantirs ceo, alex karp, on ai, tech regulation, and defense spending. Meantime, a look at nvidias halo effect. How the companys growin