Stock Market Today – Oil falls after Saudi price cuts and demand woes | Monday January 8, 2024

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Oil prices fell roughly 4% Monday morning after Saudi Arabia cut prices of crude supplies to all regions, including its main Asia market, and OPEC boosted output.

Energy markets were among several industries that have been rattled in recent days as geopolitical tensions rise in the Middle East.

West Texas Intermediate crude (CL=F) fell more than 4% during morning trading and Brent crude (BZ=F) shed 3.8%.

Prior to the price cuts, oil had surged as a result of supply disruptions. Yemeni Houthi forces in the Gulf region have escalated attacks on shipping vessels, forcing companies to reroute. Alternate paths increase shipping costs by more than 170% and add up to 14 days to the duration of the voyage.

Saudi’s decision also reflects what officials see as signs of weakening in global demand.

“That’s raising concerns about demand in China and global demand as well,” Price Futures Group analyst Phil Flynn said. “The stock market is off to a weak start this year and this news from Saudi Arabia has caused the bottom to fall out.”

This week could bring a catalyst for the market, with earnings reports from big banks and a crucial reading on inflation ahead. The CPI inflation reading is due Thursday, while JPMorgan (JPM), Wells Fargo (WFC), and Bank of America (BAC) will kick off the fourth-quarter earnings season.

Meanwhile, oil prices fell nearly 4% as investors absorbed Saudi Arabia’s decision to cut key prices of crude supplies to all regions, including its main Asia market.

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>>> IT’S 9:00 A.M. HERE IN NEW YORK CITY. I’M SEANA SMITH ALONGSIDE BRAD SMITH. THIS IS THE DEBUT OF “THE MORNING BRIEF” A GUIDE TO HELP INVESTORS MAKE SMARTERS DECISIONS. WE’RE TRACKING EARLY SESSION VOLUME, AND ELEVATING YAHOO FINANCE’S MOST POPULAR NEWSLETTER.

>> WE’LL BRING YOU THE BIGGEST STORIES OF THE DAY WITH EXPERT ANALYSIS TO HELP YOU PERFORM YOUR BEST STRATEGY. LET’S GET TO IT WITH THE THREE THINGS YOU NEED TO WATCH. >>> ALESICS KEENAN, JARED BLIKRE AND BRIAN SOZZI ARE AROUND THE NEWSROOM WITH MORE.

>>> BOEING AGAIN UNDER SCRUTINY. THE MAX 9 PLANES ARE BEING GROUNDED. THIS COMES FOLLOWING AS INCIDENT BLOWN OUT ON MIDAIR ON AN EL W ALASKAN AIRLINES FROM PORTLAND, OREGON, TO ONTARIO, CALIFORNIA. BOEING SHARES ARE TUMBLING IN THE PREMARKET. WHAT THIS COULD MEAN FOR INVESTORS LONG TERM.

>>> A ROUG DOW, S&P 500, ARE BOTH POSTING WORST STARTS TO THE YEAR SINCE 2016. ANOTHER CAUTIOUS NOTE ON APPLE THIS MORNING COULD PUT MORE THIS COMES AFTER TWO ANALYSTS S. DOWNGRADED THE STOCK OVER GROWING CONCERNS FROM THE iPHONE MAKER’S NEXT iPHONE SALES, WITH

THE START OF A EARNINGS CYCLE. SEASON WILL KICK ON THE WITH JPMORGAN, WELLS FARGO, BANK OF AMERICA AND CITI AND BLACKROCK THIS FRIDAY. >>> CONGRESSIONAL LEADERS GREAT ON A FUNDING DEAL. FINDING FOR THE REST OF THE GOVEMENTXPIRES ON FEBRUARY 2nd. ♪

>>> LET’S GET STARTED WITH THE STOP STORY THIS MORNING. SHARES OF BOEING ARE TULING THE COMPANY’S MAX 9 PLANES, 737-MAX 9 PLANES ARE BEING GROUNDED UNTIL THE FAA DEEMS THEM SAFE TO FLY. A SIDE PANEL WAS BLOWN OUT IN A FLIGHT. A SMALL SENSE OF THE PLANE’S

FUSELAGE BLEW OUT AT 16,000 FEET. THERE WERE NO DEATHS, AND THE PLANE SAFELY RETURNED TO PORTLAND. WEAVE TENSE COVERAGE ON THIS STORY. JARED BLIKRE IS IN THE NEWSROOM. ALEXIS KEENAN IS HERE WITH YOU, AND WE’LL TALK TO JEFFREY EPSTEIN, THE ANALYST FOR BOEING.

JARED, LET’S START WITH YOU. >> INTERACTIVE, AND YOU CAN SEE WE HAVE THE BACKGROUND FROM THE QUOTES ON FRIDAY. BOEING, WHICH WAS UP 1.66% IS DOWN 7.59% IN THE EARLY MARKET. THAT’S A STARK CONTRASTROM ITS COMPETITOR WHICH IS AIRBUS, UP IN EUROPEAN TRADING, TRADING IN

PARIS ABOUT 2% TO THE UP SIDE. ONE OF THE BOEING’S BIGGEST SUPPLIERS, SPIRIT AEROSYSTEMS, WHICH GETS ABOUT 60 OF THE REVENUE IS TRACKING ABOUT A 14% LOSS IN THE PREMARKET. JUST LOOKING AT THE FIVE-YEAR PRICE CHART HERE, WE CAN SEE ECHOES OF WHAT HAPPENED BEFORE

WHEN THE 37 MAX SYSTEM WAS UNDER AND PUTTING PRESSURE ON THOSE COMPANIES. JUST TAKING A LOOK AT BOEING, SAME TIME SPAN, YOU CAN SEE UP AGAINST RESISTANCE HERE. WITH A 7.63% DECLINE WITH THE EARLY TRADING, PROBABLY NOT GOING TO BREACH THAT TO THE UP SIDE.

>>> AT THE DESK FOR US,’S LEXIS IS HERE WITH MORE. BRING US UP TO SPEED ON WHAT THE PAST FEW YEARS HAVE LOOKED LIKE. >> YOU GO BACK TO LATE 2018, EARLY 2019, AND THERE WERE MAJOR HEADACHES FOR BOEING, PAYING OUT SETTLEMENTS ENTERING IN DEFERS PROSECUTION, BUT LET’S TALK

ABOUT WHAT HAPPENED OVER THE WEEKEND, WHY THIS IS SO CRITICAL FOR BOEING HERE. THE NTSB NOW INVESTIGATING THIS ACCIDENT OVER THE WEEKEND. IN A PRESS CONFERENCE, THE DIRECTOR SAYING THIS WOULD HAVE BEEN A VIOLENT AND DAY ON THEIC EXPERIENCE FOR ALL THE PASSENGERS AND CREW ON BOARD.

NONG T TWO SEATS ADJACENT TO THIS DOOR PLUG, IS WHAT IT’S CALLED, BUT BLOWN OUT OF HE AIRCRAFT. 171 PASSENGERS, NO ONE GETTING ANY MORE THAN A MINOR INJURY. SIX CREWS, AND THE FAA THEN HAS GROUNDED THE PLANE ON SATURDAY AFTER THAT FRIDAY INCIDENT.

THIS IS THE MAX 9 PLANE. THIS IS SPECIFICALLY NOT THE MAX 8 THAT WAS INVOLVED IN THOSE TWO CRASHES THAT KILLED 350 PEOPLE, APPROXIMATELY. THIS IS ONE OF FOUR BOEING MAX FAMILY, THE 7, 8, 9 AND 10,WO OF THOSE IN THE AIR, THE OTHER

TWO THE MAX 7 AND MAX 10 STILL AWAITING CERTIFICATION FROM THE FAA. >>> ALEXA, THANKS SO MUCH FOR BREAKING THAT DOWN. LET’S TALK ABOUT THE REACTION WE’RE SEEING FROM BOEING. BOEING NOW FACING ME REGULATORY SCRUTINY. IT COMES A WEEK AFTER THE GIANT, WARNING ABOUT POTENTIAL LOOSE BOLTS.

DESPITE ALL OF THIS, THE STREET OVERALL REMAINING BULLISH ON THE STOCK. OUR NEXT GUEST IS KEEPING A BUY RATING ON THE STOCK. WE WANT TO BRING IN RONALD EPSTEIN, BANK OF AMERICA SENIOR — IT’S GREAT TO HAVE YOU HERE, A GREAT SELL-OFF AHEAD OF

THE OPEN, YET YOU’RE STILL BULLISH ON THE NAME. WHY? >> A COUPLE THINGS TO THINK ABOUT. INVESTORS CAN IMMEDIATELY JUMP TO CONCLUSIONS ABOUT WHOSE FAULT WAS WHAT. IF YOU LISTEN TO THE NTSB REPORT LAST NIGHT AND THE PREVIOUS REPORT, IT’S N CLEAR WHO DID WHAT.

IT’S CLEARLY THE PLUG GOT BLOWN OUT OF THE AIRPLANE. COULD HAVE BEEN BOEING ALLEGATIONS FAULT OR SPIRIT AREA OTHER SYSTEM’S FOUGHT, COULD HAVE BEEN 9 MANUFACTURER OF THE DOOR PLUS. SO WE’LL SEE. BY WHY I REMAIN BULLISH HERE, WE’RE IN THE MIDST OF A HUGE,

UNPRECEDENTED AREA OTHER SPAYS RAMP-UP POST THE COVID DOWNTURN. THERE’S ONLY TWO BIG SUPPLIERS, BOEING AND AIRBUS. LIKE YOU MENTIONED, THE 737 MAX 9 IS JUST ONE OF THE FAMILY. THE MAX 8 IS THE MOST VOLUME MEMBER OF THE FAMILY. THEY CELT A LOT OF MAX 8

FROM A FINANCIAL PERSPECTIVE LONGER TERM, WHEN WE — THIS WILL BE A BUMP IN THE ROAD. AL BET IT IT DOESN’T LESSEN THE SHOCK OF WHAT HAPPENED, THEY’LL GET TO THE ROOT CAUSE, THEY’LL GET THIS BEHIND THE AND DELIVER AIRPLANES. >> WHEN WE THINK ABOUT WHAT TOOK

PLACE DURING THE M-CAST SYSTEM AFTER THE TWO DEADLY FATAL CRASHES HERE, WE SAW $25 BILLION OF MARKET CAP WIPED OFF OF THIS STOCK. IF YOU THINK TO KNOW WHAT GOES POTENTIAL COMING FORWARD, HAVING TO LOOK ACROSS THE 737 LINEUP, AND THIS PARTICULAR PART OF THE

MAX, WHERE COULD THIS POTENTIALLY IMPACT, UNDERSTANDING WHAT TYPE OF HIT THEY SHOULD BE PRICING IN? >> COMPARING THIS TO WHAT HAPPENED WITH THE M-CAST SYSTEM I THINK WOULD BE A MISTAKE. WHAT HAPPENED THERE WAS NOT WELL UNDERSTOOD AT A ALL. IN THIS CASE IT’S RELATIVELY SIMPLE.

DOOR PLUGS ARE USED ACROSS THE INDUSTRY. THE REAL QUESTION IS, WAS THIS MOST LIKELY A FABRICATION ISSUE AND WHERE IT HAPPENED. THE READ ACROSS WE JUST WOULD BE JUMPING TO THE WRONG CONCLUSION. M-CAST WAS FAR MORE INSIDIOUS. THERE WAS NOT BROAD UNDERSTANDING OF WHAT WAS HAPPENING THERE.

SO WE WON’T GO THERE. I WOULD THAT DO THAT READ ACROSS. IT’S NO SURPRISE THAT THE STOCK IS HIT TODAY. THERE WILL BE A REPUTATIONAL T. WE’RE SEEING THAT FOR BOEING AND THE AIRPLANE. LIKE I MENTIONED BEFORE, DEMAND FOR AIRCRAFT IS AS STRONG AS IT’S EVER BEEN.

IN FACT, THE DEMAND IS OUTSTRIPPING THE ABILITY FOR THE INDUSTRY TO SUPPLY THEM FOR A MULTITUDE OF REASONS O SUPPLY CH STRESSED, SO ON AND SO FORTH. AND I THINK THAT’S WHERE WE ARE. I WOULD JUST REITERATE, TRYING TO COMPARE THESE TWO ARE VERY DIFFERENT SITUATIONS.

THIS IS A FABRICATION ISSUE. MY SENSE IS THIS IS PROBABLY AN ENGINEERING DESIGN FLAW HERE. WE’LL KNOW WHEN THE NTSB FINISHES THE INVESTIGATION, BUT THAT’S MY SENSE. >>> WHAT ABOUT THE CASE WE’VE HEARD OVER THE LAST 24 HOURS OR SO ABOUT THE PRESSURE THAT DAVE

CALHOUN IS UNDER RIGHT NOW, WHETHER THERE NEEDS TO BE A MANAGEMENT CHANGE. DO YOU SEE ANY REASON WE COULD SEE DAVE CALHOUN FORCED OUT BECAUSE OF THIS? >> THAT’S ULTIMATELY A DECISION FOR THE BOARD. DAVE CAM IN AS CEO. HE WAS ON THE BOARD BEFORE HE

WAS CEO. IT’S MY SENSE THEY HAD BEEN MAKING SOME RECOVERY IN TERMS OF PUSHING THE COMPANY IN THE RIGHT DIRECTION, BUT THE BOARD WILL HAVE TO ANSWER THIS QUESTION, DOES BOEING NEED A RENEWED FOCUS ON ENGINEERING ACROSS THE MANAGEMENT SPACE AND HAS THE CURRENT MANAGEMENT TEAM DONE

THAT? I THINK THE ISSUES WE HAVE SEEN WITH THE AIRCRAFT, THE MULTUDE OF THINGS THAT HAPPENED EVEN IN THE DEFENSE BUSINESS OVER THE LAST 5 TO 8 YEARS, REALLY BEGS THE QUESTION, SHOULD THE COMPANY BE DOUBLING DOWN ON ITS FOCUS ON HAVING A STRONG ENGINEERING CULTURE.

THE BOARD JUST HAS TO DECIDE, IS THE CURRENT MANAGEMENT TEAM RIGHT. >> WE HEARD, FLAGGING TO US THERE HAD BEEN PRESSURE WARNINGS AT LEAST THREE TIMES PRIOR TO THIS TAKING PLACE. SO THIS ALSO COMES BACK TO THE TYPE OF TRAINING THAT NEEDSO

ALSO BE ROLLED OUT ACROSS ANY OF THE DIFFERENT AIRCRAFT, OF COURSE, THAT PILOTS ARE BEING TRAINED ON, BUT THAT ALSO HAS A FINANCIAL IMPACT AS WELL HERE. AS YOU’RE THINKING ABOUT THAT TRAINING, ONCE AGAIN IN THE THROES OF THE CONVERSATION, WHAT TYPE OF FINANCIAL CONSIDERATION

DOES THA MN FOR BOEING AND FOR ALL THE OTHER AIRLINES THAT THEY NEED TO MAKE SURE IS REINSTITUTED IN ANY TYPE OF THE AIRCRAFT OPERATORS. >> FROM WHAT THE NTSB SAID, THAT WARNING LIGHT HAPPENED WHEN THE AIRCRAFT WAS ON THE GROUND WHEN THERE WASN’T A PRESSURIZATION

SYSTEM. I’M NOT AN EXPERT ON THIS. WHAT I CAN REITERATE WHAT THE NTSB SAID, ALASKA AIR TOOK THE PROPER PRECAUTIONS. THEY WEREN’T FLYING THE AIRPLANE ON VERY LONG TRIPS BECAUSE OF THAT, BUT THERE WASN’T AN IMMEDIATE WORRY THAT THERE WAS SOME SORT OF PRESSURE LEA ON THE

AIRPLANE, BECAUSE THE WARNING LIGHT WENT OFF ON THE GROUND. THERE SUGGESTED MAYBE A FAILURE IN SENSING SYSTEM, AND I THINK IT IMPORTANT TO NOT REACH A CONCLUDES THAT THAT HADDING IN TO DO WITH THE PLUS SECTION IN THE BACK JUST BECAUSE OF THE

NATURE OF HOW THE WARNING LIGHTS WEDNESDAY. >> GOING BACK TO WHAT YOU SAID A MOMENT AGO ABOUT THE PRESSURE THAT THE CEO IS UNDER, YOU SAID IT’S UP TO SHAREHOLDERS TO DECIDE, BUT FROM YOUR PERSPECTIVE, YOU’VE BEEN FOLLOWING THIS COMPANY FOR YEARS.

DO YOU THINK CALHOUN IS THE RIGHT PERSON TO LEAD BOEING? >> YEAH. LIKE — HOW CAN I SAY IT? AGAIN, IT’S THE BOARD’ DECISION. IT’S NOT WHAT RON THINKING. AND I THINK ULTIMATELY IT COMES BACK TO THE COMPANY’S FOCUS ON ENGINEERING. I’VE BEEN A PRETTY VOCAL —

BOEING HAS DECIDED NOT TO DO A NEW AIRPLANE UNTIL SOMETIME IN THE 2030s. I HAVE WRITTEN MANY TIMES I THINK THAT’S A MISTAKE. THAT’S WHAT THE CURRENT MANAGEMENT TEAM DECIDED TO DO. I WOULD BE MORE COMFORTABLE IF THE COMPANY WAS PUSNG I ENGINEERING CULTURE MORE.

THEY SEEM TO BE PUSHING MORE A FINANCIAL CULTURE. AGAIN, LIKE I SAID, IT’S NOT RON’S VIEW, BUT WHAT THE BOARD AND SHAREHOLDERS THINK. >> WE’LL SEE EXACTLY WHERE THE FINANCIAL CULTURE THEY’RE PUSHING PERHAPS PUT CAPITAL BACK INTO THE ENGINEERING CULRE YOU WOULD LIKE TO DO MORE.

RONALD EPSTEIN, THANK YOU SO MUCH FOR THE TIME HERE. >> MY PLEASURE. >>> KEEP IT RIGHT HERE. WELL GET TO MORE UPDATES AS THE NEWS COMES. STAY TUNED HERE. >>> WE ALSO HAVE AN FAA LICENSED COMMERCIAL PILOT WITH US AT 11:00 A.M. WITH HIS TAKE ON THE

SITUATION. >>> WELL, KEEPING THINGS GOING NEAR THE S&P 500 COMING OFF ITS WORST START TO THE YEAR SINCE 2016, AFTER A PAIR OF DOWNGRADES ON APPLE SPOOKED INVESTORS, AND ANOTHER CAUTIOUS NOTE OUT ON THE TECH GIANT THIS MORNING COULD PUT MORE PRESSURE ON THE BROADER MARKETS HERE.

JEFFRIES WARNS THAT APPEAR MANY SALES SLUMP IN CHINA IS GETTING WORSE. SO DOES THIS SPELL MORE TROUBLE FOR THE TECH SECTOR? WE HAVE TO BRING IN THE IN THE OPPENHEIMER CHIEF ANALYST. JEFF, WHAT DOES IT SPELL OUT FOR PERHAPS THE FIRST QUARTER AT LEAST, ESPECIALLY CONSIDERING

THE GAINS WE CAME OFF OF LAST Y? >> BRAD, THANKS FOR HAVING ME ON THE SHOW. FIRST OF ALL, WE’VE GOT TO SAY, WHEN WE LOOK AT THIS, WE THEY THE OVERALL EFFECT ON THE MARKET HAS BEEN ONE OF SOME PROFIT TAKING AMONG THE MAGNIFICENT

SEVEN IT WILL BE IRON OUT IN THE EARNINGS SAYINGEN. WHICH GETS KICKED OFF THIS WEEK. OVERALL, A REPRICING ABOUT THE THOUGHT WHEN THE FED IS GOING TO BEGIN CUING. WHAT FEDS ONE COMPANY’S SYMPTOM WE HAVE TO SEPARATE THE NOISE FROM THE SIGNAL, AND CONSIDER AT IS SYSTEMIC.

AHEAD HERE TO THE REST OF 2024, DO YOU THINK. >> A WE LOOK AT THE FOURTH QUARTER EARNINGS SEASON ACROSS THE TRANSMANY, WE THINK WE’LL SEE ENOUGH SURPRISES THAT ARE POSITIVE TO OFFSET CERTAINLY AR. WHETHER THEY’RE TIED TO GLOBAL OR DOMESTIC GROWTH, THE

CONSIDERATIONS BY VERY TRAINING GROUPS BASED ON WHAT THEY WERE SEEING FROM FACTS AND GROWTH IS NOW EXPECTED TO BE DOWN FROM AROUND FOUR IN THE THIRD QUARTER. REMEMBER, GOING INTO THESE EARNING SEASONS, ANALYSTS HAVE BEEN RELATIVELY CONSERVATIVE OVERALL. THE SENSE HAS BEEN NEGATIVE

GOING IN, OPEN DEPOSIT SURPRISES, AND WE THINK THE ECONOMY IS BIGR THAN THE NEGATIVE PITCH BOOK HERE. >> DOES THAT MEAN TRADERS SHOULD BE EMBRACING IN SOME CASES, BUT ALSO PREPARED FOR SOME OF THE MORE VOLATILE STOCKS POST EARNINGS? >> BRAD, ABSOLUTELY.

VOLATILITY IS PART A PASCHAL OF THE MARKETS. AS YOU KNOW, I’VE INVOLVED IN THE MARKET SINCE 1983. SO I’VE BEEN THINK EVERY BOOM/BUST RECOVERY CYCLE IN THE PROCESS. WHAT WE HAVE TO SAY, IS TNGS HAVE TO GET DID I JESTED. IT’S NOT UNCOMMON AFTER A

REMARKABLY POWER OF RUN THAT THE MARKETS PROBABLY GOT AHEAD OF THEMSELVES. WE WERE LOOKING FOR THAT OCTOBER 27th LOW LAST YEAR FOR ABOUT 6%, 7% UP SIDE, AND A LOT OF THAT WAS BASED ON EXPECTATIONS OR BETS, RATHER, BY MARKET PLAYERS WHAT, FIVE OR SIX TIMES THIS ,

YEAR. WE DON’T THINK THAT’S LIKELY. INFLATION REMAINS TOO STICK,. JEROME POWELL DOES NOT WANT TO HAVE TO BECOME PAUL VOLCKER AND TAKE DRACONIAN EFFORTS, NOR DOES HE WANTS TO BE ARTHUR BURNS, WHO WAS THE PDECEOR OF VOLCKER, WHO MISSED THE ABILITY TO FIGHT INFLATION.

WE THINK THE FED REMAINS ON GUARD, BUT REMAINS SENSITIVE. IT LOOKED LIKE A HAIRCUT TO US MORE THAN A STOP ROUTE. >> JOHN, FOR INVESTORS, FOR OUR VIEWERS WHO WARRANT TO TAKE ACTION, TRYING TO FIGUROUS THE BEST WAY TO POSITION THEIR ADJUSTMENTS THEY SHOULD MAKE HE

TODAY? >> I THINK THE BIG ADJUSTMENT IS TAKE A LOOK AT WHAT YOU OWN, WHY YOU OWN IT AND HAVE REALISTIC EXPECTATIONS HOW DIFFERENT SECTORS, MARKET CAPITALIZATION AND STYLE POSITIONS WILL PERFORM. AS WELL AS USER TOLERANCES RISK. IN THAT, IF YOU WERE ABLE TO

TAKE MARKET VOLATILITY, THE ADVANTAGE WHEN SOME STOCKS THAT WERE TOO EXPECTATIVE LAST QUTER DDEN LOOD CHEAPER IN HERE, BECAUSE THERE’S AN OPPORTUNITY TO ADD POSITIONS. WE DON’T SUGGEST BUSH RATHER LOOK FOR THE BABIES THAT GET THROWN OUT WITH THE BATHWATER.

AT TIMES THEY THROW IT OUT WITH THE BAT WATER. SO IT’S A GOOD IDEA TO KEEP ALERT. >> JOHN, QUICKLY WHILE WE HAVE YOU, WHETHER YOU THIS I ABOUT THE AREAS THAT ARE PERHAPS PRONE TO MOST PROFITTAKING AHEAD OF A HEART PIVOT OR ANNOUEMEN OF

ANY CUT COMING FORWARD, WHAT WOULD THOSE SECTORS BE? >> I THINK RIGHT NOW BASED ON THE PERFORMANCE OF TECHNOLOGY AND COMMUNICATION SERVICES, WHICH AS I RECALL WERE UP AROUND 50% LAST YEAR, I THINK THOSE WOD BE PRONE TO SEEING SELLING, BUT

I THINK WHEN YOU LOOK AT THAT, YOU REALLY HAVE TO CONSIDER THE EFFECTS OF THE FED AS ACTIONS BASED ON ECONOMIC DATA, WHICH SHOWS THEY MADE REMARBLE PROGRESS ON INFLATION WHILE BEING VERY SENSITIVE TO THE EFFECTS OF PRACTICES THEIR MANDATE ON THE ECONOMY.

BASICALLY BEING DESCRIBED FOR EQUAL GROWTH OR WHAT THEY SAY IS FULL EMPLOYMENT. >>> JOHN, APPEARS GREAT TO GET YOUR INSIGHT HERE. LOOKING FORWARD TO TALKING WITH YOU SOON. CONGRESSIONAL LEADERS, AT 1.6 TRIAL JOB. YAHOO FINANCE’S RIC NEWMAN HAS THE LATEST ON THAT. IT’S NOT VOTED ON YESTERDAY.

SO AFTER LAST SEPTEMBER, AND THE WHOLE QUESTION IS WHETHER THE NEW HOUSE SPEAKER WILL WILL GET ENOUGH REPUBLICANVOEKTS, WOULD NEED TO GET THIS THROUGH, SO IT’S THE SAME KIND OF TENSION BETWEEN THE HOUSE SPEAKER AND THESE CONSERVATIVES IN THE HOUSE, THE REPUBLICAN

CONSERVATIVES, WHO ADOPT LIKE THIS DEAL. THEY DON’T THINK IT CUTS SPENDING BY ENOUGH, BUT THE QUESTION IS, WILL ENOUGH OF THOSE SUPER-CONSERVE REPUBLICANS GO LOOKS ALONG WITH THIS TO GET IT OVER THE HUMP AND PASSED, SEND UP TO THE WHITE HOUSE, OR

WILL WE SEE THE SAME SORT OF DRAMA, AND UNFORTUNATELY — THE ANALYSIS I’M SEEING SUGGESTS THAT THE DYNAMIC IS A BIT DIFFERENT, MAKELY BECAUSE MIKE JOHNSON COMES FROM THAT CONSERVATIVE WING OF THE REPUBLICAN PARTY ANDHERE’S NOT A PERSONAL ANIMOSITY THAT EXISTED BETWEEN THE

CONSERVATIVES AND KEVIN McCARTHY. THE ULTIMATE OUTCOME WOULD BE THEY PASS THIS THING AND WE DON’T HAVE TO CARE ABOUT THE DYNAMICSES, BUT WE’RE NOT THERE YET. >> WHERE IS THE BIGGEST HANG-UP THERE, RICK? >> IT’S THAT, WHETHER THE CONSERVATIVE WING WILL SAY WE

CAN LIVE WITH THE MODEST SPIPDING CUTS, OR IF THEY DEMAND MORE,ND BY THE WAY, THIS DOES NOT INCLUDE THAT SEPARATE DEAL INCLUDING THE AID FOR UKRAINE THAT PRESIDENT BIDEN WANTS, AID FOR ISRAEL, AND THOSE TWO THINGS COUPLED WITH SOME KIND OF IMMIGRION DEAL TO TIGHTEN UP

ON THE MIGRANTS COMING ACROSS THE SOUTHERN BORDER. THAT WOULD BE SEPARATE. THE ODDS OF ALL OF THIS HAPPENING MIGHT BE ABOUT 60%. PRESIDENT BIDEN SAID RECENTLY HIS STATE OF THE UNION ADDRESS WILL BE SCHEDULED FOR MARCH 7th. THAT’S A LITTLE LATER THAN USUAL. IT’S USUALLY IN FEBRUARY.

THAT MIGHT BE SO THERE’S ENOUGH BREATHING ROOM TO GET THE GOVERNMENT FULLY FUNDED AND GET THESE THINGS OUT OF THE WAY BEFORE HE GOES TO CAPITOL HILL. >> IT WILL BE IERESTING TO SEE HOW IT PLAYS INTO THE 2024 ELECTIONS HERE. >> THANK YOU, RICK.

>> SEE YOU GUYS. >>> COMING UP WE HAVE A PUTSY WEEK HERE AT “MORNING BRIEF.” WE HAVE A FRESH INFLATION DATA, AND THEN YOU CAN’T MISS FRIDAY, THE BIG KICKOFF TO EARNINGS. WE’VE GOT YOU COVERED ON ALL OF THIS. CATCH US LIVE ON YAHOO FINANCE’S “MORNING BRIEF.”

♪ >>> WELCOME BACK TO OUR NEW SHOW “MORNING BRIEF,” THE ONE-STOP SOURCE YOU CAN TRUST. >> THE NEW FLAGSHIP SHOW COUNTS YOU DOWN TO THE OPENING BELL. BRINGING YOU THE TOP MARKET THEMES AS DELIVERED DAILY IN OUR ST POPULAR NEWSLETTER. >>> EVERY DAY WE’RE GOING TO

BRING YOU THE BIG STORIES, THE TOP EXPERT ANALYSIS, INSIGHT AND,ABLE ADVICE, TO HELP YOU MAKE SMARTER DECISIONS FOR YOUR PORTFOLIOS. >>> DURG TODAY’S MARKET ACTIVITY AND THE FLAGSHIP NEWSLETTER ALSO KNOWN AS “MORNING BRIEF,” PROS SAY STICK TO WHAT WORKS. INFLATION FINALLY STARTED

COOLING, HELPING AMERICANS SPEND HO SULD INVESTORS PLAY INTO THE SHOCKING RESILIENCE? THAT’S THE BIG QUESTION. BRIAN SOZZI IS HERE WITH US ON SET TO BREAK IT DOWN FOR US. >> GOOD TO SEE YOU. I GOT TO WRITE THE FLAGSHIP NEWSLETTER HERE. THAT’S ALWAYS EXCITING FOR ME.

WHAT GOT ME THINKING IS THE STRONGER EXPECTED JOBS REPORT THAT HIT ON FRIDAY, ABOUT 216,000 JOBS ADDED, TELLING ME, LIKE BRAND MENTIONED, THE ECONOMY REMAINS STRONG, A LOT OF GOOD THINGS HAPPENING, AND THE RETAIL STOCKS OR CONSUMER STOCKS MAY BE GOOD EARLY BETS HERE.

LET’S RUN THERE SOME OF THESE. FIRST UP IS LULULEMON. IT’S REALLY SEEN AS A WINNER IN THIS MARKET HERE, AND COMING OUT OF THE ICR PRESENTATION IN FLORIDA, WHICH OUR OWN BROOKE DiPALMA IS AT. IT WAS AT 13% TO 14%, ALSO TAKING OUT THE BOTTOM END OF THE

CENTS. >>> ABERCROMBIE & FITCH, A LOT OF PEOPLE EXPECT TO RAISE GUIDANCE ON THE BACK OF STRONG DEMAND FROMOUNG PEOPLE. >>> LASTLY, COSTCO, UNDER THE RADAR IT CAKE OUT WITH ONE OF THE BEST HOLIDAY SHOPPING SEASONS IN ALL OF RETAIL. >>> LET’S GO DEEPER HERE.

WHY CHOOSE CONSUMER STOCKS IN THIS ENVIRONMENT? ONE, THE JANUARY — THE JOBS MARKET SURPRISE IS A GOOD THING. INFLATION CONTINUES TO COME DOWN, AND REALLY INTEREST RATES ARE LIKELY TO CONTINUE TO FL THIS YEAR, GUYS. THAT COULD BE A REAL CATALYST IN THIS SPACE.

>> WE HAVE TO TAKE A STEP BACK, RIGHT? WHERE WE ARE TODAY IS PRETTY SHOCKING, CONSIDERING THE PREDICTIONS WE STARTED 2023 WITH, EVEN THE PREDICTIONS OVER THE LAST SEVERAL MONTHS WITH THE RESUMPTION OF STUDENT LOAN REPAYMENTS. I’M CURIOUS ABOUT YOUR PERSPECTIVE WITH THE

CONVERSATIONS YOU’VE BEEN HAVE. IS IT VERY STOCK SPECIFIC OR COMPANY SPECIFIC, OR WILL WE SEE THE STRAIN ACROSS THE BOARD? >> I GLAD YOU ASKED. I HAVE A COUPLE THINGS THAT INVESTORS NEED TO BE LOOKING FOR. FIRST UP, STICK WITH WHAT WORKS, LULULEMON HAS PUTTING UP STRONG

RESULTS FOR YEAR. NUMBER TWO, EXPERIENCES, I THINK IF WE HAVE LEARNED ANY CRUISE VACATION, YOU NAME IT OSE E WHAT PEOPLE ARE PAYING FOR. AND LAST, BUT NOT LEAST, STICK WITH COMPANIES THAT HAVE A CLUE. THOSE ARE THE LIKES OF A WALMART AND TARGET, BUT INCREASINGLY

COMPANIES LIKE ANBERCROMBIE & FITCH, WHERE YOU CAN BUY THESE PRODUCTS IN STORES AND PICK THEM UP. >> SOZZ, THANKS SO MUCH. >> THANKS. >>> FOLLOWING THE OPEN BELL A WALL STREET, MADISON MILLS IS STANDING BY AT THE NEW YORK STOCK EXCHANGE, AND JARED BLIKRE

IS AT THE INTERACTIVE. MADY, THE FIRST FEW MINUTES OF TRADING, WHAT ARE YOU HEARING FROM TRADERS ON THE FLOOR. >> OBVIOUSLY THE AIRLINE STOCKS ARE TAKING UP A BIT OF THE AIR IN THE ROOM THIS MORNING WITH THE BIG BOEING NEWS, DOWN 10% PREMARKET.

MY SOURCES HERE AT THE FLOOR IS TELLING ME THAT’S NOT WHAT’S GOING TO DEFINE TODAY’S TRADE. ONE OF MICE SORES POINTING TO GCO, GENES CO. INDICATING WORE THAN EXPERTED — THIS COULD BE AN INDICATION OF THE FED’S THTENG CYCLE DOING WHAT IT WAS SUPPOSED TO DO.

IF WE CONTINUE TO GET SOME INFORMATION FROM RETAILERS THAT WERE GETTING YOU NOTICE, SOME CONSUMER SOFTENING, THAT COULD COD BE DOWN APPEARED COULD ED COME AT 12:306789 TODAY. THAT COULD BE THE THING THAT DEFINES SOME OF THE MARKET MOVE. THROUGHOUT THE DAY TODAY, GUYS.

>> THANKS SO MUCH, MADY. LET’S HEAD TO JARED BLIKRE WITH A CLOSER LOOK AT THE DROP IN OIL. >>> THAT’S RIGHT, WE’RE TRACKING ENERGY, XLE, DOWN 2% I WANT TO FOCUS ON CRUDE OIL, DOWN 4.6%, TRADING AT THE BOTTOM END OF ITS TRADING RANGE.

HERE IS THE SPICE WE HAD WITH THE INCURSION, AND A THREE-YEAR LOOK, THERE’S ANOTHER SPIKE THAT WAS MUCH GREATEST. THIS WAS THE RUSSIAN INVASION THE BIG GEOPOLITICAL STRIKE HERE OFF OF OIL. THAT’S SOMETHING WE WERE WATCHING BECAUSE OF WHAT’S HAPPENING IN THE RED SEA.

BECAUSE OF REACTION TO WHATEVER — I’M NOT GOING — THEY HAVE DROPPED THEIR PRICES WORLDWIDE BY UP TO $2. THIS COULD BE EITHE TO TAKE MARKET SHARE FROM U.S. AND OPEC — NON-OPEC PLUS PRODUCERS, OR IT COULD JUST BE A REACTION

TO THE DYNAMICS AS THEY SEE THEM. NEVERTHELESS WE’RE SEEING A TIGHT OIL RKET SAUDARABIA HAS BE TIGHT OIL MARKET FOR SEVERAL YEARS. OPEC PLUS IS CUTTING UP TO 2.2 MILLION BARRELS PER DAY. THERE’S SOME WIGGLE ROOM IN THERE. THE SAUDIS AND OPEC PLUS

MANIPULATE AND SET OIL PRICES NOT ONLY THROUGH SUPPLY AND DEMAND BYUTTING PRODUCTION, BUT BY ALSO ACTUALLY SETTING THE PRICES. HERE IS THE ENERGY HEAT MAP. WE CAN SEE A LOT OF RED ON THIS. >> JARED, THANKS SO MUCH. LET’S TALK MORE ABOUT ALSO WHAT

WE HAVE SEEN SINCE THE START OF THE YEAR. STOCKS OFF TO THE WORST START F. NOW, DESPITE ALL OF THE WORRISOME SIGNSUT WILL. RBC STRATEGIST OUT WITH A NEW NOTE RAISING HER YEAR-END TARGET TO 5150, UP FROM HER INITIAL VIEW OF 5,000. OUR VERY OWN MYLES UDLAND IS

HERE TO BREAK IT DOWN. >> YOU WERE TALKING — YET LORI IS SAYING THERE’S SOME REASON TO BELIEVE. >> I THINK MY FAVORITE PART OF THE CALL IS THERE’S A SLIGHT DOWNGRADE THEY IMPLIEDBOUT A 10% INCREASE, GIVEN THE GAINS WE

HAVE SEEN AT THE END OF 2023 WE HAVE SEEN THIS IS THE THIRD, FOURTH STRATEGIST WE ALL KNOW THE DAT THAT 10% AND IT REALLY COMES DN TO HOW MUCH MULTIPLE EXPANSION, HOW MUCH THEY THINK IS LEFT IN THE MARKET. SDPLOOF TALKING ABOUT THE

EARNINGS OUTLOOK, YET ALSO RESTRAINS THAT ENTHUSIASM. THEY WERE LOOKING AT IT TO SOME OF THE OTHER FACTORS THAT EVEN WHEN YOU HAVE THIS MUCH OPTIMISM COULD BE DAMPENERS. BUT SO ON AND SO FORTH, AN INTERESTING BUT GOOD BUT TEMPERED CALL. >>> COMING UP, EVERYBODY, A HUGE

ACQUISITION IN THE HEALTHCARE SPACE, PLUS CONCERNING REPORTS ABOUT ELON MUSK. >>> WE’LL BREAK DOWN THE TOP TRENDING TICKERS OF THE DAY ON THE OTHER SIDE OF THIS SHORT BREAK. >>> WELCOME BACK. A QUICK CHECK OF THE MARKETS, INTO THE TRADING DAY HERE.

WE’RE KEEPING A CLOSE EYE ON A FEW OF THE BIG DOW PERFORMERS HERE. BOEING NOW HAS THE FAA LOOKING ACROSS THE 737 MAX 7, MAKING SURE THE NECESSARY UPDATES ARE DONE ACROSS THE FLEET. FOCUSING IN ON THE DOW HERE, THAT’S ONE OF THE COMPONENTS,

THE DOW DOWN BY ABOUT 0.5%. AND THE NASDAQ COMPOSITE, HIGHER BY ABOUT 0.6%. >>> WE’RE WATCHING SHARES OF TESLA AFTER A REPORT FROM “WALL STREET JOURNAL”LAIM ILLEGAL DRUG USE WAS THE CAUSE OF SOME OF THE ELON MUSK’S QUESTIONABLE BEHAVIOR, AND EXECUTIVES ARE

CONCERNED ABOUT THE IMPACT ON SOME OF HIS COMPANIES. WHAT’S WORTH NOTING HERE WITHIN THIS IS THAT THERE WERE CLAIMS THAT HE WAS USING DRUGS SUCH AS LSD, ECSTASY, CKETAMINE. >> I THINK THIS ISHE LATEST HEADACHE HERE, SOMETHING THEY’RE OT UNFAMILIAR WITH SOME OF THE

SIDE REPORTING AND HOW IT’S IMPACTING CEO ELON MUSK. THE PRESSURE WE’RE SEEING IN SHARES, JUST BECAUSE OF WHAT THIS MEANS IN TERMS OF CASTING SOME UNCERTAINLY AROUND THE STOCK, WE KNOW A LOT OF THE HYPE AND EXCITEMENT SURROUNDING TESLA IS TIED DIRECTLY TO ELON MUSK

AND HIS VISION THERE. ANY SORT OF SCENARIO, WHERE YOU COULD POTENTIALLY DOWN THE ROAD NOT SEE MUSK LEAD TESLA, THAT WOULD BE A MASSIVE CONCERN FOR MANY SHAREHOLDERS OUT THERE TODAY, BUT AGAIN, THESE ARE REPORTS FROM “WALL STREET JOURNAL,” JUST ADDING TO SOME OF

RISK, SOMETHING THAT COULD LEAD TO MORE CAUSE GOING FORWARD ON THE STOCK. >> EVEN WHEN HE WAS ON THE JOE ROGAN EXPERIENCE, THAT PODCAST, THERE WAS A VIDEO COMPONENT, WHERE WE SAW HIM LIGHTING ONE UP, AND THEN NASA HAD RANDOM DRUG TESTING FOR MULTIPLE YEAR.

>>> MERCK ACQUIRING HARPOON THET $680 MILLION. THE CLOSING OF THIS ACQUISITION IS PENDING APPROVAL, TAKING A LOOK AT THE REACTION THAT WE ARE SEEING IN SHARES TODAY. THIS DEAL WOULD POTENTIALLY OR DOES GIVE MERCK HERE AN EXPANSION IN TERMS OF THEIR PIPELINE AND COULD SOLIDIFY THE

LEADERSHIP THEY HAVE RIGHT NOW IN THE ONCOLOGY SPACE. WE THIS HAS BEEN A FOCAL POINT. THE TOP SELLING CANCER TREATMENT, WE COULD SEE SOME PRICING PRESSURE ON KEY TRUA, SO FURTHER DIVERSIFYING THE PIPELINES, THE PRODUCTS HERE OF DRUGS COULD BE A BOOST DOWN TO

MERCK DOWN THE LINE. >> THIS IS THE LARGEST PRODUCT SALES DRIVER, AND IT’S ALREADY OUTPACING YEAR-TO-DATE SALES COMPS TO THE Q3EAR END. SO ONCE WE GET MORE UPDATE, PLUS WE’RE GETTING MORE ABOUT WHERE THEY INTEND TO INCLUDE THIS WITHIN THEIR BUSINESS, BUT LOOK AT THIS DEAL.

THE MOVE THAT WE HAVE SEEN WITH HARPOON AFTERWARDS, IF WE’VE GOT TO LOOK AT THOUGH SHARES, I SAW THEM HERE PREMARKET, THEY WERE UP 109% TO BE EXACT. SO $23 A SHARE IN CASH, AND THERE YOU’RE SEEING EXACTLY WHERE THEY’RE MOVING FOR HARPOON.

THEY HAD ABOUT $17 MILLION MARKET CAP COMING INTO THIS, SO A NICE BOOST FOR THEM, A NICE GAIN FOR SHAREHOLDERS AT THE END OF THE DAY. HARPOON ESSENTIALLY HAS THIS PALACE FORM THAT’S GOING TO ALLOW MERCK TO PERHAPS BE ABLE TO LEVERAGE AND BRING TO LIGHT

EVEN MORE OF THE PARTICULAR — AND IT’S A ABOUT A PALACE FORM BASE AT THIS POINT, FOCUSING ON THE BODY’S IMMUNE SYSTEM TO TREAT PEOPLE SUFFERING FROM CANCER AND OTHER DISEASES. >> WHEN WE TALK ABOUT WHAT THIS MEANS FOR THE COMPANY GOING FORWARD.

>>> AND NVIDIA IS TODAY’S STOCK TO TCH. THE CHIP GIANT IS REPORTEDLY LOOKING TO BEGINS PRODUCTION OF NEW CHIPS FOR CHINA IN THE SECOND QUARTER. WITH MORE. LS IS STANDING BY >> NVIDIA’S MARKET CAP STANDS TO HAVE A BROAD OF IMPACT, AND SOME OF THE OTHER NOISIER NAMES.

WHY IS THIS STOCK MOVING THIS MORNING? IT’S OFF OF THE NEWS THAT NVIDIA WILL BE DELIVERING MORE POWERFUL A.I. CHIPS, ONE SPECIFIC CHIP IN 2024 IN CHINA. THEY WERE WORKING ON TWO OTHER CHIPS THAT WOULD ALLOW THEM TO SELL THOSE CHIPS IN CHINA IN EXPLAIN WITH U.S. REGULATORY

MEASURES. HOWEVER, THIS CHIP IS A BIT MORE EXCITING TO CONSUMERS IN CHINA. THAT’S BECAUSE IT’S MORE POWERFUL WE HEARD FROM ALI BABA PREVIOUS, FROM ENINDIVIDUALIA. THIS CHIP NEWS TODAY STANDS TO CHANGE THAT. SO OVER THE NEX COUPLE DAYS WE’LL SEE IF THERE’S ANY COMMENTARY, ANY REACTION FROM

ALI BABA FROM HUAWEI ON HOW THEY FEEL ABOUT THIS NEW, MORE POWERFUL CHIP COMING IN 2024. IN TERMS OF THE MARKET ACTION, NVIDIA THE TOP PERFORMER IN THE MAGNIFICENT SEVEN. COULD THIS BE THAT TRADERS CLING TO AFTER LAST WEEK’S LESS THAN GOOD PERFORMANCE, AND NVIDIA THE

BEST PERFORMER SO FAR TODAY IN THE TRADE, IN THATAG SEVEN. COULD THIS NAME LIFT UP THAT NAME, OR COULD SPEAK-SPEAK THROW A BIT OF COLD WATER ON THAT MARKET ACTION? >> CERTAINLY ONE OF THE LARGER QUESTIONS. IS THERE CONTINUED MOMENTUM IN THE MAG SEVEN TRADE HERE?

MADISON MILLS MAGNIFICENT IN HER OWN WAY, WE APPRECIATE IT. >>> STRATEGISTS PREDICT THAT PRESIDENT BIDEN COULD PULL OUT OF THE ELECTION, THOUGH THE ECONOMY AND MARKETS ARE SHOWING SIGNS OF N ONL STRENGTHENING BUT GROWTH. HOW COULD THAT IMPACT YOUR PORTFOLIO?

WE HAVE PAUL KRUGMAN, “NEW YORK TIMES” COLUMNIST AND PROFESSOR. WHAT INFORMATION DOES THE ANALYST HAVE MORE THAN THE PUBLICR EVEN THOSE CLOSEST TO THE PRESIDENT HERE, BUT LET’S GAME OUT THIS HYPOTHETICAL. WHAT WOULD BE THE REAL IMPACT IF WE DID SEE PRESIDENT JOE BIDEN

PULL OUT FROM THE GENERAL ELECTION? >> WELL, I MEAN, AGAIN, WHAT DOES HE KNOW? IF I’M IN A PDICANT LIKE THAT, YOU SHOULD NOT TAKE ME SERIOUSLY, BECAUSE I DON’T HAVE ANY SPECIAL INFORMATION. I DON’T KNOW WHY A WALL STREET STRATEGIST SHOULD HAVE AN INSIDE TAKE HERE.

IT WOULD CAUSE CHAOS WITHIN THE DEMOCRATIC PARTY, BECAUSE THERE’S NO OBVIOUS PERSON TO RUN INSTEAD. EVEN IF THEY COULD UNITE ON SOMEBODY, I DON’T THINK IT MAKES A DIFFERENCE. I DON’T KNOW MUCH ABOUT THE — ANYTHING, REALLY, ABOUT THE POLITICAL STUF BUT I’VE BEEN

DIGGING INTO CONSUMER SENTIMENT NUMBERS. WHAT YOU SEE THERE IS DEMOCRATS ARE FEELING INCREASINGLY GOOD ABOUT THE ECONOMY, THEY’RE RESPONDING AS WHAT YOU WOULD EXPECT TO A GOOD YEAR IN 2023. REPUBLICANS ARE ABSOLUTELY — IT . ALL THAT MATTERS IS THERE’S A

DEMOCRAT IN THE WHITE HOUSE, SO THEY SAY THE ECONOMY IS TERRIBLE. THAT’S NOT GOING TO CHANGE. CHANGING THE NAME AT THE HEAD OF THE TICKET WILL NOT CHANGE THAT. I DON’T SEE ANY REASON TO THINK — THIS IS NOT GOING TO H REALLY SHAKE UP ANYTHING IN

TERMS OF THE UNDERLYING DYNAMICS OF THE ELECTION. >> YOU MENTIONED THE FACT THERE ARE SOME PERCEPTIONS THAT THE ECONOMY IS STILL VERY LOUSY DESPITE THE RECENT DATA THAT IT’S REMAINED REMARKABLY RESILIENT. HOW DO YOU SEEING WHAT WE’RE CURRENTLY SEEING IN TERMS OF THE

>> IT’S DEFINITELY TIME FOR THE FED TO CUT RATES. THE UNEMPLOYMENT RATE IS ABOUT THE SAME. THE UNDERLYING INFLATION IS JUST SLIGHTLY HIGHER, BUT VERY CLOSE TO THE FED ‘2% TARGET NOW. THE FED’S FORECAST OF INFLATION IS JUST SLIGHTLY HIGHER THAN IT

WAS, BUT THE FED’S FUND RATE WAS — IT’S 5.5 NOW. IT’S HARD TO JUSTIFY. YOU KNOW, THE WAR ON INFLATION IS SUDDENLY OVER. IT’S HARD TO UNDERSTAND WHY THE RATES WOULD STAY HIGH NOW, AT THE JUSTIFICATION FOR RATE HIKES SEEMS TO BE — IS THERE, YOU

KNOW — COULD THERE BE A RECESSION IN 2024. WHO KNOWS? THERE’S VERY LITTLE — SOME VERY, VERY SLIGHT HINTS OF WEAKNESS IN THE DATA, BUT THE ECONOMISTS HAVE A PITCH REPORT, WHICH MEANS WE’VE NEVER BEEN RIGHT. SO INFLATION IS DEFINITELY A SOLVED PROBLEM.

>> ECONOMISTS HAVE BEEN CALLING FOR A RECESSION FOR A YEAR AND A HALF AT THIS POINT, SO — >> ECONOMISTS HAVE NEVER SUCCESSFULLY CALLED A RECESSION, AND WHEN THERE’S UNANIMITY THAT ONE IS COMING, IT DOESN’T HAPPEN. >> WHAT IS THE LARGEST SHIFT IN

TONE THAT YOU’RE ANTICIPATING FROM THE FED WITH THAT REGARD? >> I THINK IT’S A BIG DEAL WHEN THE FED BASICALLY SAYS WE’RE CUTTING RATES BECAUSE INFLATION APPEARS TO BE LARGELY UNDER CONTROL. THEY’LL PROBABLY BE MUCH MORE CAUTIOUS IN THE WAY THEY SAY IT,

BUT I THINK IT MAKES A BIG DIFFERENCE. IT’S ANOTHER THING FOR ALL OF US SITTING HERE WITH THE DATA AND EVEN TO HAVE NEWS REPORTS THAT SAY MEASURES UNDERLYING INFLATION IS CLOSE TO THE FED TARGET. IT’S — THAT’S THE KIND OF A VALIDATION.

WE KNOW IT’S TRUE, BUT IT WILL BE A VERY BIG DEAL THE FIRST TIME THAT THE FED SET, AGAIN THE PROGRESS ON INFLATION WE’RE CUTTING RATES. >> PAUL, WHAT WOULD YOU SAY IS THE BIGGEST RISKS FOR THE ECONOMY? YES, THERE’S REASONS TO BE

OPTIMISTIC, BUT CERTAINLY A LOT OF UNCERTAINTY AHEAD. WHAT DO YOU THINK — >> I DON’T SEE ANYTHING IN OUR OWN ECONOMY — IT’S NOTHING LIKE TH HOUSING BUBBLE, YOU KNOW, IN 2007 OR THE TECH BUBBLE IN 2020. SO IT’S NOTHING OUT THERE THAT’S OBVIOUSLY SET TO COLLAPSE DOMESTICALLY.

MAYBE SETHI WE’RE MISSING, BUT MAYBE MORE BANK RUNS, SOMETHING LIKE THAT. GEOPOLITICS. I MEAN, THERE WERE — WHAT’S HAPPENED SO FAR IS THE SHIPPING ATTACKS IN THE RED SEA ARE, BY THEMSELVES, NOT A HUGE THING, BUT IT’S NOT GOOD. LOOK, IF CHINA INVADES TAIWAN,

ALL BETS ARE OFF, RIGHT? I THINK THE RISKS ARE GEOPOLITICAL AT THIS POINT. >> PAUL, THANK YOU FOR YOUR TIME THIS MORNING. >> THANK YOU. >>> MUCH MORE COMING UP FROM YAHOO FINANCE’S “MORNING BRIEF.” WE WILL BRING YOU THE VIBE CHECK ON APPLE.

HOW DOES IT THE STREET FEEL ON THE BACK OF TWO KEY DOWNGRADES OF THE TECH GIANT? WE’LL DISCUSS ON THE OTHER SIDE. WE’LL BE RIGHT BACK. >>> TROUBLE EALAT FOR APPLE WITH JEFFRIES SAYING THAT iPHONE SALES FELL 30% IN CHINA. THE TECH GIANT IS SEE ITS WORST

START TO THE YEAR. WE’VE BEEN COMBING THROUGH WALL STREET NOTES. >> I BRING THI UP, WHEN YOU COMPARE THAT — AND YET TO WHAT WE ARE SEEING, FROM THE OTHER TECH GIANTS, IN 2023. IT REALLY PALES IN COMPARISON. AMAZON HAVING 68 BUY RATINGS, SO

APPLE FAR SHORT OF WHAT WE’RE SEEING, BUT APPLE HAS CERTAINLY BEEN IN A ROUGH SPOT OVER THE LAST SEVERAL TRADING DAYS. SOME OF THE COMPARISON NUMBER, BRING BROUGHT TO LIGHT HERE, SAYS THEIR VALUATION, THAT IT’S NOT SUPPORTED BY SOME OF THE SLOWING GROWTH HE.

AT APPLE, WHAT THAT MEANS FOR GOING FORWARD HERE. THEY’RE SAYING THEY DOWNGRADED IT TO SELL, SAYING SOME OF THEIR CHECKPOINT TO EVEN FURTHER WEAKNESS. >> YEAH, 7% SLIPPAGE COMING INTO THE START OF THIS YEAR. ALSO WORTH KEEPING BOTH EYES ON HERE, THE HEADSET AND ULTIMATELY THAT LAUNCH.

NEW ERA OF SPATIAL COMPUTING IS WHAT THEY’RE TALKING ABOUT. A LOT OF ANALYSTS, TO THE EXTENT THEY’VE BEEN ABLE TO GET THEIR HANDS ON IT, N ONL DOES IT NEED TO BE SLIPPER, BUT IT NEITHER TO COME DOWN. WE WERE SPEAKING WITH DAN IVES

WHEN IT WAS ANNOUNCED, HE SAYS IT HAS TO DUMB DOWN TO ABOUT $1500 IN THE NEXT TWO YEARS, EREE SEES IT ULTIMATELY GOING, BUT THAT’S THE PLAYBOOK FOR CUPERTINO. IT INVESTORS ARE USUALLY SKEPTICAL BUT IT’S WHEN THEY CAN NORMALIZE WITHIN THE MARKET

AFTER A LOT OF THE CORPORATE AND B 2 B PURCHASING THAT HAVE BEEN MADE, MAKE SURE IT LOOKS MORE LINE INSTEAD OF MESSING UP MY DO WHILE PUTTING ON THAT NEW HEADSET. >> WHETHER OR NOT THERE’S ENOUGH EXCITEMENT TO CONVINCE PEOPLE TO SPEND 3499 EXACTLY TO YOUR POINT.

>> LIST OUT ALL THE THINGS I CAN GET FOR $3499. >>> WE HAVE WE’VE GOT FRESH INFLATION DATA TO BRING YOU LIVE. THEN, CAN’T MISS FRIDAY, THE BIG KICKOFF TO EARNINGS. WE’VE GOT YOU COVERED ON ALL OF IT. CASH US LIVE ON YAHOO! FINANCE’S MORNING BRIEF.

>>> WELCOME BACK TO “YAHOO FINANCE LIVE.” I’M SENIOR HLTH REPORTER ANJALEE KHEMLANI HERE IN SAN FRANCISCO AT THE ANNUAL JPMORGAN E TO KICK IT OFF WITH ME IS ELI LILLY’S CEO, DAVE RICKS, TO TALK, OF COURSE, TO START OFF WITH, YOUR ABSOLUTELY RUNAWAY YEAR, ANTICIPATEDHIS YEAR.

THANKS FOR JOINING US TODAY. LET’S TALK ABOUT THIS. YOU KNOW, GLP-1s, ABSOLUTELY THE TALK OF THE TOWN, WE’RE STILL TALKING ABOUT IT AT THE START OF THE YEAR WITH MOUNJARO, ZEP BOUND BEING APPROVED. YOU REALLY SHOT THE FIRING GUN IN 2005. >> THAT’S RIGHT.

WE HAVE BEEN IN THIS SPACE A LONG TIME, AS YOU MENTIONED. GLP. >> WE’RE ADDING OTHER HORMONES TOGETHER. MOUNJARO AND ZEPOUNDS TWO MODES OF ACTION, AND IN THE PIPELINE, WE HAVE ANOTHER ONE COMING WITH THREE MODES OF ACTION SO WE’RE LEARNING HOW TO

EXPLOIT THIS BIOLOGY TO REALLY AFFECT A WHOLE NUMBER OF METABOLIC DISEASES. LAST YEAR WAS ABOUT THE LAUNCH ZEP BOUND BOUND THAT HAPPENED IN THE FALL. MOUNJARO HAD A GREAT YEAR AS WELL IN DIABETES. TRULICITY CONTINUES TO DO WELL. THIS YEAR WILL BE ABOUT SOME OF

THE NEW DATA RELEASES AS WE STUDY THESE DRUGS, NOT JUST TO DEMONSTRATE THAT YOU LOSE IGHT WHICH ALMOST EVERYBODY DOES, BUT WHAT HAPPENS TO YOUR BROADER HEALTH. WE’RE STUDYING A POPULATION WITH CONGESTIVE HEART FAILURE, A SPECIFIC SUBTYPE, PARTIAL INJECTION FRACTION, AND THAT’S

REALLY DRIVEN BY OBESITY, SO WE’RE ANXIOUS TO GET THOSE RESULTS IN THE SECOND HALF. SO A CONDITION CALLED SLEEP APNEA, WHICH IS A COMMON CONDITION THAT ALMOST TEN MILLION AMERICANS HAVE THAT WE THINK WE CAN REDUCE THOSE SIGNS AND SYMPTOMS OF SLEEP APNEA BY

LOSING WEIGHT. SO, THIS WILL BE NOW THE NEXT STEP TO TRANSLATE THOSE HEALTH BENEFITS WITH GREAT WEIGHT LOSS. >> CERTAINLY SOMETHING WE’RE ALL LOOKING AT IS HOW MUCH MORE CAN YOU GET, WHAT OTHER DISEASES CAN K GET BENEFITTED BY THE WORK THAT YOU HAVE BEEN DOING?

I ALSO KNOW THAT YOU LAUNCHED LILLY DIRECT. YOU’RE TRYING TO GET TO THE CONSUMER AS WE SAW HOW MUCH OF A RUN YOU HAD ON JUST MOUNJARO ALONE LAST YEAR. THESE DRUGS ARE IN HIGH DEMAND. YOU’RE RUNNING OUT AT SOME POINTS IN THE YEAR. SO, LAUNCHING LILLY DIRECT,

GETTING TO THE CONSUMER, DIRECTLY TO THEM WITH ZEP BOUND FIRST AND THEN A COUPLE OTHER DIABETES DRUGS,HAT THE GOAL? ARE YOU TRYING TO CUT OUT THE PHARMACIES AND THE PVMs? T >> WE’RE NOT TRYING TO CUT OUT ANYONE. WE WANT TO OPTIMIZE THE PATIENT EXPERIENCE.

WE LISTEN CAREFULLY TO OUR PATIENTS. THEY’RE FRUSTRATED WITH THE ATEF.S. HEALTH CARE AND HOW IT WORKS FOR THEM. WE’RE TRYING, WITH LILLY DIRECT, TRYING TO DO THREE THINGS. ONE IS THE DIRECT PART, GET SUPPLIES OR PRODUCTS FROM A MANUFACTURER DIRECTLY. THAT’S AN EXPERIENCE WE ALL HAVE

IN MANY PARTS OF OUR LIFE, AND SOME PEOPLE PREFER IT. I WOULD SAY, IN PARTICULAR, PEOPLE WITH OBESITY WHO, WHEN THEY GO OUT INTO THE WORLD, THEY’RE OFTEN SHAMED FOR THE WAY THEY LOOK. MANY PEOPLE DON’T CONSIDER OBESITY A HEALTH CONDITION. THEY GET BLOWBACK AT THE

PHARMACY COUNTER, ET CETERA, SO THEY, IN PARTICULAR, LIKE THE DISCRETION OF GETTING THAT PRODUCT DIRECTLY. SECONDLY, TELEHEALTH, WHICH A LOT OF AMERICANS HAD EXPERIENCE WITH IN COVID, AND SO DON’T LIKE AND SOME DO. HERE, WE’RE SERVING UP A PARTNER IN DIFFERENT DISEASE STATES, ACTUALLY, THREE DIFFERENT

PARTNERS, WHO ARE GOOD AT TELEHEALTH, AND PEOPLE HAVE A PL. AND WHY DO WE DO THAT? WE’VE WORKED WITH THEM IN VARIOUS WAYS TO MAKE SURE THE QUALITY OF THE PROGRAMS ARE VERY HIGH. AND SO, LILLY CAN BE A TRUSTED SOURCE TO GET THAT TELEHEALTH PROVIDED. >> ABSOLUTELY.

>> AND THEN, YOU KNOW, I THINK THE OTHER THING I WOULD SAY IS, IN PARTICULAR WITH OBESITY, HERE, AGAIN, PATIENTS REPORT KIND OF DOCTOR SHOPPING TO FIND SOMEONE WHO WILL WRITE THEM WHAT THEY KNOW IS A SOLUTION FOR THEIR HEALTH PROBLEM, AND SO

HERE, IT’S JUST MORE CONVENIENT. IT’S NOT JUST, THOUGH, TELEHEATT TELEHEALTH. WE HAVE A DOCTOR FINDER TOOL, FIND A CERTIFIED OBESITY SPECIALIST IN YOUR AREA, AND ACCESS TO KNOWLEDGE, THE GAP IS VAST IN THE U.S. >> IT’S AN INTERESTING PLAY, ONE WE HAVEN’T SEEN BEFORE FROM A

LEGACY PHARMA PLAYER, SO WE’LL HAVE TO SEE WHAT THE RESPONSE IS TO THAT AND WHETHER OR NOT PATIENTS ACTUALLY SEE IT. YOU ALSO ARE HAVING PRETTY GOOD YEAR. YOUR STOCK, UP, IN THE LAST YEAR. >> IT’S A NEW YEAR. EVERYTHING GOES TO ZERO. >> THAT IS CORRECT. IT RESETS.

BUT YOU HAD A GOOD RUN. REALLY REACHING RECORD HIGHS. YOU’VE BEEN SORT OF ON A SLOW CLIMB SINCE THE PANDEMIC. YOU’RE INVOLVED WITH PRODUCTS THERE. NOW, WITH THE OBESITY SPACE, YOU HAVE A LOT MORE GOING FOR YOU. WHAT ARE YOU LOOKING AT NEXT? HOW DO YOU SORT OF, YOU KNOW,

GIVE BACK SHAREHOLDER VALUEND ALL THIS AND HOW DO YOU JUSTIFY ALL THAT? >> WELL, I THINK WE’VE — AND I’LL TALK TOMORROW ABOUT THIS CONFERENCE. I THINK IF YOU’RE AN INVESTOR AND YOU’RE LOOKING AT LILLY, AND YOU’RE THINKING, THIS IS A ZEP BO

BOUND/MOUNJARO STORY, I DON’T THINK YOU’RE READING IT RIGHT. I THINK WE’VE BEE ON, AS YOU MENTIONED, A LONG CLIMB, AND IT’S REALLY DRIVEN BY THE PRODUCTIVITY OF OUR R&D ORGANIZATION, SO I THINK A BET ON LILLY IS TO BET WE CAN KEEP

INVENTING NEW THINGS, NOT JUST SELL THE THINGS WE HAVE INVENTED, WHICH ARE GRE. ONE OF FILLED OUR R&D ENGINE IS ONE THAT CAN INNOVATE INSIDE OF A TIMELINE THAT’S SHORTER THAN YOUR PATENT LIFE, AND OF COURSE, WE ALL KNOW, AT THIS CONFERENCE,

YOU ALWAYS HEAR ABOUT, WHO’S GOT A PATENT CLIP COMING? WHAT DEAL DO THEY HAVE TO DO TO MAKE UP FOR THAT? WE WANT TO GET OUT OF THAT BUSINESS, AND THE WAY TO DOHAT TO LAUNCH PRODUCTS FASTER THAN YOU LOSE THEM. THAT’S HOW WE GROW IN OUR INDUSTRY.

EVERYTHING WE LAUNCH WILL GO TO SERE SOME DAY, EVEN MOUNJARO AND ZEP BOUND. SO WE NEED TO CREATE SOMETHING BETTER, FASTER THAN THAT EVENT, AND WE HAVE BEEN ABLE TO DO THAT. IF YOU LOOK AT TRULITY,HICH LAUNCHED IN 2014, AND THEN IN

2022, JUST EIGHT YEARS LATER, INSIDE THE PATENT LIFE, WE LAUNCHED MOUNJARO, WHICH IS, BY ALL MEANS, PROBABLY A BETTER PRODUCT, AND THEN PROBABLY IN 2026 OR ’27, WE’LL LAUNCH RETATRITIDE, WHICH IS PROBABLY GOING TO BE A BETTER PRODUCT THAN THAT.

THAT SORT OF SERIAL INNOVATION AND RAPID INNOVATION IS SOMETHING WE’RE FOCUSED ON. THE OTHER PART OF THE STORY IS SUCCESS ACROSS NOT JUST WEIGHT LOSS AND DIABETES BUT OTHER AREAS. YOU MENTIONED COVID. WE WERE, I THINK, THE LARGEST SELLER OF COVID ANTIBODIES IN

THE U.S. DURING THE CRISIS. WE’RE PROUD TO DO THAT AND SAVE PROBABLY 30 OR 40,000 LIVES WITH THOSE. IN ONCOLOGY, WE’RE MAKING MOVES OF GROWING THAT PORTFOLIO, BEYOND OUR BLOCKBUSTER BREAST CANCER DRUG, BUT WE’RE BUILDING A PIPELINE OF REALLY EXCITING MOLL MOLECULES IN ONCOLOGY, ALONG

WITH ALZHEIMER’S. WE EXPECT APPROVAL EARLY THIS YEAR, AND IMMUNOLOGY, IMPORTANT PRODUCTS, AND ONE THAT JUST LAUNCHED FOR CROHN’S AND COLITIS. >> AND A TIME WHERE GENERALLY, LET’S GO TO THE BROADER MARKET, A LOT OF COMPANIES ARE LOOKING AT WHERE TO MAKE THE MOVES NEXT,

ESPECIALLY WITH ALL THE PRESSURE YOU’RE SEEING FROM D.C. THERE’S GENERAL SORT OF CONTRACTION, I THINK, A LITTLE ABT WHERE TO GO, WHAT’S HINKG BENEFICIAL, WHAT YOU CAN GET INTO WITHOUT REALLY GETTING PENALIZED OR GETTING INTO TROUBLE. HOW DO YOU THINK ABOUT THAT SPACE RIGHT NOW?

>> YOU’RE PROBABLY REFERENCING THE I.R.A., BUT I THINK THE BROADER REGULATORY ENVIRONMENT AROUND THE WORLD FOR INDUSTRY IS TIGHTENING. I INK THAT HAS TWO PRIMARY EFFECTS. ONE IS PRODUCT LIFE CYCLES WILL BE SHORTER. I JUST COMMENTED ON OUR STRATEGY, WHICH IS TO BE FASTER

THAN LIFE CYCLE, SO WE’RE MOVING EVEN FASTER SO THAT WE CAN LAUNCH SUCCESSIVE INNOVATION BEFORE SOMETHING LIKE A GOVERNMENT NEGOTIATION IN THE U.S., WHICH IS THE I.R.A. ISSUE. OR SHORTER PATENT LIVES, WHICH ARE HAPPENING. THERE’S A DEBATE IN EUROPE ABOUT . THAT’S HOW WE INOCULATE

OURSELVES AGAINST THAT. THE SECOND THING IS THE WORLD’S AWASH IN CHOICE. WHAT USED TO BE BRANDED DRUGS ARE NOW GENERIC AND VERY CHEAP, AND WE HAVE TO MAKE BETTER AND . THAT THRESHOLD OF IMPROVEMENT IS GOING UP. I THINK PEOPLE EXPECT EVEN MORE IMPACT FROM THE NEXT MEDICINE.

SO, WE HAVE TO CHANGE HOW WE INVEST, WHICH IS TO REALLY DEMAND THAT THE — WHEN WE PUT OUR MONEY BEHIND A PHASE THREE PROGRAM, AND THOSE ARE BILLION, $2 BILLION TICKETS, THAT IT’S GOING TO REAY CNGE THA FIELD OF MEDICINE.

THAT’S THE QUESTION WE ASK OURSELVES. WHEN WE DO THAT, SOMETIMES WE’RE RIGHT. SOMETIMES WE’RE WRONG. WE END UP WITH A GOOD MEDICINE WHEN WE WANTED IT GREAT. BUT I THINK IT ALLOWS US TO COMPETE IN A TOUGHER FUTURE FOR BIOPHARMA. >> FINAL QUESTION FOR YOU.

GOING BACK TO THE GLP-1 SPACE, LOTS OF INTEREST, LOTS OF COMPETITORS COMING DOWN THE PIKE. YOU’RE TALKING ABOUT DIFFERENTIATING BY TARGETING DIFFERENT DISEASE STATES AS WELL AS GETTING THAT TIMELINE FASTER, LIKE YOU MENTIONED. HOW ARE YOU PLANNING TO KEEP THE MARKET SHARE, THOUGH?

BECAUSE THERE ARE A LOT OF PEOPLE INTERESTED. THERE’S ORALS COMING. I KNOW YOU HAVE THAT TOO. SO, THERE’S SO MANY DIFFERENT OPTIONS THAT ARE GOING TO BE COMING DOWN THE PIKE. >> THAT’S GREAT FOR PATIENT. I THINK THAT’S SORT OF HOW THE INDUSTRY WORKS.

WHEN THERE’S A BIG SUCCESS, EVERYONE WILL PILE IN AND FOLLOW. I THINK THE QUESTION, IF YOU LOOK AT HISRIC PERFORMANCE, IS, WILL WE BE THE LEADER WHO GAVE UP THE LEAD, OR WILL WE EXPLOIT THE LEAD? THERE WILL BE ROOM FOR OTHERS

AND VARIOUS NICHES AND SO FORTH. OF COURSE, WE WANT THE SECOND. WE’RE DOING THAT WITH SUCCESSIVE INNOVATION. ‘VE GOT AN ORAL, THE MOST ADVANCED IN OUR PROGRAM OUT THERE. WE’VE GOT SIX OTHER CLINICAL STAGE ASSETS IN OBESITY AND THE VARIOUS MANIFESTATIONS, AND I

THINK THAT’S WHERE THE GAME WILL TURN NEXT IS WHO’S INDICATED FOR WHAT? HOW CAN WE PROVE VALUE, NOT JUST YE WE NEED DRUGS THAT PROVIDE MORE WEIGHT LOSS. THAT’S RETATRITIDE’S PROMISE, 20 TO 30% WEIGHT LOSS, WHICH IS WHAT BARIATRIC SURGERY CAN DO. PAYERS AROUND THE WORLD ARE

LOOKING FOR VALUE, AND I EXPECT THAT ENVELOPE OF INDICATIONS TO EXPAND. TODAY, WE’RE PRODUCING SOMETHING LIKE A DOZEN DIFFERENT INDICATIONS FOR OUR PORTFOLIO OF OBESITY MEDICATIONS. THAT WILL GET WIDER THROUGH TIME, AND I THINK THAT’S EXCITING FOR THE HEALTH OF THE WORLD.

IF Y LOOK AT ADULT HEALTH, THERE ARE SO MANY THINGS TIED TO EXCESS BODY WEIGHT, AND WE’RE JUST BEGINNING TO LEARN, BY THE WAY, ALL OF THE WAYS TO USE THESE DRUGS TOGETHER OR IN SEQUENCE, HOW TO GET PEOPLE ON ALL LOWER DOSES OR OFF MEDICATION

E. I THINK IT’S GOING TO BE AN EXCITING DECADE AHEAD FOR INNOVATION WITH WEIGHT LOSS. >> GOOD THING YOU GOT A LEAD ON THAT. WE’LL HAVE TO LEAVE IT THERE. ELI LILLY CEO, DAVE RICKS, THANK YOU SO MUCH FOR JOINING US. >>> DON’T GO ANYWHERE.

“YAHOO FINANCE LIVE” WILL BE RIGHT BACK. ♪ >>> WELCOME BACK TO “YAHOO FINANCE LIVE,” I’M BRAD SMITH AL ALONGSIDE SEANA SMITH. WE’RE ABOUT 40 MINUTES INTO THE TRADING DAY. LET’S LOOK AT HOW THINGS ARE SHAPING UP THIS MORNING. STOCKS ARE MIXED AS THE DOW IS

WEIGHED DOWN BY BOEING FOLLOWING THAT ALASKA AIRLINES INCIDENT OVER THE WEEKEND. THE S&P 500 AND THE TECH-HEAVY NASDAQ, BOTH MOVING HIGHER, HOLDING ON TO GAINS. >>> CROCS, ONE OF THE BIGGEST MOVERS ON YAHOO! FINANCE TODAY. SURGING. LOOK AT THAT. NEARLY 20% AFTER THE COMPANY

UPDATED ITS GUIDANCE THIS MORNING AHEAD OF THE 2024 ICR CONFERENCE. NOW, CROCS SAYING IT EXPECTS RECORD FULL-YEAR REVENUE IN 2023, UP ALMOST 11% COMPARED TO THE PRIOR YEAR. THEY ALSO ARE ANTICIPATING A STRONG 2024 THANKS TO IMPROVEMENT IN GROSS MARGINS.

>> MUST HAVE BEEN THOSE GRIMACE CROCS. >>> SOLAR COMPANY END PHASE FEELING THE LOVE AND T LHT THIS MORNING FROM WELLS FARGO. AN ANALYST AT THE FIRM UPGRADING THE STOCK TO OVERWEIGHT FROM EQUAL WEIGHT, SAYING THAT THEY EXPECT A REBOUND IN RESIDENTIAL

SOLAR AS INTEREST RATES COME DOWN. WELLS FARGO SAYING THAT ■END PHASE’S STRONG 2023 PERFORMANCE AND CASH FL ALLS IT TO BE A DEFENSIVE PLAY AGAINST UPCOMING HEADWINDS. >>> AND PAIR OF UPGRADES PUSHING DELL SHARES TO THE UPSIDE HERE THIS MORNING, UP JUST ABOUT 3.5%.

UBS NAMED THE STOCK ONE OF ITS TOP TECH HARDWARE PICKS FOR 2024, AND JPMORGAN UPGRADING DELL TO OVERWEIGHT, UP FROM NEUTRAL THIS MORNING, AND AGAIN, NEARLY 4%. >>> THE RECENT PULLBACK IN STOCKS ISN’T WORRISOME FOR SOME BOND TRADERS. OPTIMISM IS FUELING INTEREST IN

TREASURYS AS THE FED LOOKS TO CUT RATES THIS YEAR. FOR MORE ON THE BOND MARKET MOVES, WE’RE JOINED BY OUR VERY OWN JARED BLIKRE. HEY, JARED. >> Y, BRAD. INVESTORS HAVE NOT LIKED BONDS UNTIL VERY RECENTLY, OVER THE LAST FEW YEARS. WE JUST BARELY ESCAPED WHAT

WOULD HAVE BEEN AN HISTORIC THREE-YEAR DOWN GDRAFT IN BONDS AND THAT JUST DOESN’T HAPPEN. HERE, WE CAN SEE THE FLOWS OF 2023 WERE DOMINATED BY FLOWS INTO CASH, MONEY MARKETS. $1.3 TRILLION. WHEN IT COMES TO BONDS, $276 BILLION, AND U.S. EQUITY, $95 BILLION.

SO, REALLY, BONDS ACTUALLY TOOK IN QUITE A BIT MORE THAN STOCKS LAST YEAR, AND WHEN WE THINK ABOUT CASH ON THE SIDELINES, HERE’S A CHART THAT GOES BACK BEFORE THE GLOBAL FINANCIAL CRISIS OVER 15 YEARS. SUFFICE TO SAY, WE ARE AT RECORD HIGHS.

THIS SUGGESTS THAT THERE’S A LOT OF MONEY THAT COULD COME POURING INTO THE MARKET THIS YEAR. IS IT GOING TO BE STOCKS, BONDS, OR IS IT JUST GOING TO BE MORE CASH? HARD TO SAY, BUT LET ME GET TO SOME OF THE CHARTS AROUND THE TEN-YEAR.

WE HAPPENED TO SEE THE TEN-YEAR T-NOTE YIELD ANT 4.01%. HAS IS A BIG PSYCHOLOGICAL NUMBER, AND LET ME SHOW YOU HOW IMPORTANT IT HAS BEEN. LAST YEAR, IN STOCKS, WE WERE HAVING A GREAT YEAR FOR THE MEGACAPS THROUGH JULY, BUT THEN AS THE TEN-YEAR T-NOTE YIELD

BUSTED THROUGH 4%, MADE ITS WAY ALL THE WAY UP TO 5% FOR THE FIRST TIME IN DECADES, THAT PUT A REAL BRAKE ON THE EQUITY RALLY, AND THEN THIS, THIS DOWNDRAFTF OVER 1 PERSON POINTS, OVER A HUNDRED BASIS POINTS, IN A VERY SHORT PERIOD

OF TIME, THIS WAS A TREMENDOUS TAILWIND, NOT JUST FOR THE MEGA CAPS BUT FOR ALL STOCKS. WE SAW A HUGE RUSH INTO THE LAGGARDS INTO YEAR-END, SO WITH THE TEN-YEAR T-NOTE YIELD THREATENING TO BREAK ABOVE 4%, IT JUST GETS INTO THE NARRATIVE,

WHAT IS THE FED GOING TO DO? WHAT ARE THE OTHER CENTRAL BANKS OF THE WORLD GOING TO DO? AND THIS IS THE BIGGEST THING DRIVING FLOWS AROUND THE WORLD RIGHT NOW, AND THIS IS THE INTEREST RATE STRUCTURE. THIS IS WHAT GLOBAL CENTRAL BANKS ARE PRICING IN FOR THEIR

POLICY RATE. THE U.S. FEDERAL IF YFUNDS RATE SITTING ABOVE 5%, AND THE JAPAN POLICY RATE, THAT’S STILL STUCK IN NEGATIVE TERRITORY, NEGATIVE 0.1%. SO, WE HAVE A BANK — WE HAVE A BANK OF JAPAN MEETING IN A COUPLE WEEKS. ARE THEY GOING TO BE RAISING

THEIR RATE OR ARE THE FED AND THE ECB GOING TO BE LOWERING THEIR RATE THIS YEAR? ALL THOSE DYNAMICS ARE GOING TO DETERMINE WHAT HAPPENS IN THE GLOBAL BOND MARKET, AND IT’S GOING TO HAVE HUGE IMPLICATIONS FOR FLOWS, AND THEN HERE’S ANOTHER INTERESTING FACT.

JUST ONE MORE THING. MICHAEL HARTNETT AT BANK OF AMERICA SAYING THE MOST IMPORTANT THING FOR THE BOND MARKET THIS YEAR, FORGET ABOUT THAT. IT’S THE TREASURY REFINANCING ANNOUNCEMENT THAT WE GET LATE IN THE MONTH, JUST BEFORE MONTH-END, AND THAT DETERMINES

HOW MUCH THE U.S. GOVERNMENT IS GOING TO SELL IN BILLS AND BONDS. THAT COULD BE THE BIG SWING FACTOR HERE, GUYS. LOTS HAPPENING IN THE MONTH O JANUARY. >> LOT HAPPENING AND A LOT FOR INVESTORS TO KEEP TRACK OF OVER THE COMING WEEKS. JARED, THANKS.

>>> WELL, BLACKROCK AND FIDELITY, ALONG WITH OTHERS, SET TO LIST A SPOD BITCOIN ETF IN THE U.S., REVEALING FEES IN THEIR FINAL S-1 FILINGS. BITCOIN MOVING BACK TOWARDS THAT $45,000 LEVEL THIS MORNING, AMID THIS EXCITEMENT SURROUNDING A POTENTIAL APPROVAL. A SPOT ETF IS GOING TO BE

POTENTIALLY HUGE HERE FOR THE INDUSTRY BECAUSE IT WOULD ALLOW EVERYDAY INVESTORS TO G EXPOSURE TO BITCOIN, OPENING UP THE MARKET TO POTENTIAL MILLIONS OF NEW INVESTORS. OUR NEXT GUEST SAYING IT’S GOING TO BE A POSITIVE CATALYST FOR THE INDUSTRY. WE WANT TO BRING IN THE CEO OF

RIOT PLATFORMS. JASON, GREAT TO SEE YOU. THANK YOU SO MUCH FOR TAKING THE TIME. >> THANK YOU FORAVIN ME. >> WE BROUGHT YOU ON TODAY. WE HAVE BEEN CLOSELY TRACKING THE PERFORMANCE OF YOUR STOCK, UP JUST ABOUT 240% IN THE PAST YEAR ALONE, BUT JUST LAST WEEK,

WE HAD AN ANALYST FROM BERNSTEIN, AND HE WAS SAYING THAT YOUR COMPANY IS AMONG HIS TOP PICKS IN THE CRYPTO SPACE FOR024. SO, JUST TALK TO US JUST ABOUT HOW BIG OF A CATALYST YOU THINK A POTENTIAL APPROVAL OF THE SPOT

ETF IS GOING TO BE FOR THE INDUSTRY, ALONG WITH OTHER CATALYSTS THAT ARE ON THE HORIZON. >> YEAH, WE BELIEVE THE ETF IS GOING TO BE AN INCREDIBLE TOOL FOR UNLOCKING WHOLE NEW POOLS OF CAPITAL FLOWING INTO BITCOIN. HISTORICALLY A LOT OF INVESTORS

WHO MAY HAVE HAD AN INTEREST IN BITCOIN, HAVE BEEN ABLE TO GET EXPOSURE TO THE ASSET. NOW, WITH ETFs, A TRADITIONALLY TRADED SECURITY, THOSE INVESTORS CAN GET INDIRECT EXPOSURE TO BITCOIN AND USE THAT AS A PART THE PORTFOLIO MANAGEMENT. WE BELIEVE THIS IS GOING TO

BRING A HUGE INFLOW OF NEW CAPITAL INTO THE SPACE THAT SHOULD HAVE A VERY POSITIVE CATALYST ON THE PRICE OF BITCOIN, WHICH IS A FINITE ASSET AND BECOMING MORE FINITE EVERY YEAR HERE, EVERY FOUR YEARS HERE. AND THIS IS A, I THINK, A RISING

TIDE THAT WILL LIFT ALL BOATS IN THE INDUSTRY, AND BITCOIN MINERS, WELL POSITIONED LIKE RIOT, ARE POSITIONED TO BENEFIT FROM THIS IN AN OUTSIZED WAY. >> WHAT ABOUT THE OTHER PRICE ACTION HERE, AND THINKING ABOUT THE STOCK? COANY OUT THERE. PUBLICLY TRAD

YOU HAVE TO BE THINKING ABOUT WHAT THAT SELL THE NEWS TYPE OF EVENT MAY LOOK LIKE AND YOU KNOW, NOT TO KIND OF PUT THE ANALYST HAT FULLY ON YOU, BUT WHAT DOES THAT MEAN FOR HOW YOUR ROLE, YOUR TEAM KIND OF MANAGES

ITSELF THROUGH AN EVENT LIKE THIS? >> SO, RIOT’S HERE BECAUSE OF OUR LONG-TERM VISION OF BITCOIN. WHAT HAPPENS WITH PRICE VOLATILITY IN THE SHORT-TERM IS NOT AS IMPORTANT TO US. WE POSITIONED OURSELVES TO WITHSTAND THAT VOLATILITY. WE HAVE ONE OF THE STRONGEST BALANCE SHEETS.

WE JUST REPORTED ENDING THE YEAR, 2023, WI APPROXIMATELY $900 MILLION IN NET LIQUIDITY. WE ALSO HAVE ONE OF THE LOWEST COST OF PRODUCTION FOR BITCOIN THROUGH Q3. WE REPORTED DIRECT COST OF ABOUT $5,500 PER COIN. SO, THE PRICE MAY BE VOLATILE IN THE SHORT-TERM, AND WE’RE

POSITIONED TO WEATHER THAT STORM IF SO, BUT THIS TYPE OF EVENT, AN ETF APPROVAL, THE CAPITAL COMING IN, WHILE IT MAY NOT HAVE AN IMMEDIATE EFFECT, YOU KNOW, I DON’T HAVE A CRYSTAL BALL, I THINK IT’S GOING TO HAVE A POSITIVE LONG-TERM EFFECT ON

BITCOIN, WHETHER THAT TAKES PLACE IN THE COMING MONTHS OR THE COMING YEARS. SO, BITCOIN MIE POSITIONED TO TAKE ADVANTAGE OF THAT OPPORTUNITY, AND YOU KNOW, WE’LL BE PATIENT, BECAUSE WE’RE HERE BECAUSE OF OUR LONG-TERM VISION ON BITCOIN. >> AND JASON, YOU MENTIONED THE, OF COURSE, ETF EVENT.

WHAT ABOUT THE HAVING EVENT THAT’S ANTICIPATED IN APRIL? WHAT TYPE OF IMPACT TO THE COST ON OPERATIONS ARE YOU ANTICIPATING? >> SO, THE HAVING EVENT THAT OCCURS EVERY FOUR YEARS CUTS THE ISSUANCE OF NEW BITCOIN SUPPLY IN HALF. THIS IS WHAT MAKES BITCOIN VALUABLE.

THERE’S ONLY 21 MILLION BITCOIN THAT WILL EVER BE AVAILABLE IN SUPPLY, AND EVERY FOUR YEARS, THAT NEW ISSUANCE GETS CUT IN HALF FURTHER. THAT WILL RUN THROUGH 2140 AND BY 2032, MOST ALL OF THAT WILL BE MINED OUT THERE. THAT IS OVERALL POSITIVE FOR

LARGE HOLDERS OF BITCOIN LIKE RIOT, BECAUSE THIS ASSET IS BECOMING MORE AND MORE SCARCE, AND THINGS LIKE THE ETF ARE INCREASING DEMAND UP. I WOULD JUST TOUCH BACK ON WHAT I SAID EARLIER ABOUT OUR BALANCE SHEET STRENGTH, ABOUT OUR DIRECT COST FOR BITCOIN.

THAT HELPS US WEATHER THROUGH ANY VOLATILITY THAT MAY COME AROUND. HISTORICALLY, WE HAVE SEEN THE PRICE OF BITCOIN GO UP IN THE 12 AND 18 MONTHS FOLLOWING THE HAVING. THAT’S NOT TO SAY THAT HISTORY IS ALWAYS GOING TO REPT ITSELF, BUT WITH THINGS LIKE AN

ETF APPROVAL AND WHAT WE’RE TALKING ABOUT POTENTIALLY SUPPORTING THE PRICE AROUND THAT, IN THAT TIME FRAME, WE THINK THIS HAS THE SHAPINGS TO BE ANOTHER POSITIVE 18, 24 MONTHS FROM HERE. AND IMMIATE TERM, THE HAVING EFFECTIVELY DOUBLES EVERYONE’S COST OF PRODUCTION.

THAT’S WHY WE FOCUS ON HAVING A DYNAMIC POWER STRATEGY AND FOCUS ON HAVING LOW COST OF PRODUCTIONS TO BE ABLE TO WITHSTAND WHATEVER HAPPENS COMING THROUGH THE HALVING HERE. >> JASON, FROM AN INVESTOR PERSPECTIVE, I THINK A LOT O OPLE ARE SITTING THERE, WHEN

THEY TAKE INTO ACCOUNT, HEY, MAYBE WE COULD POTENTIALLY INVEST IN A SPOT BITCOIN ETF, THAT COULD BE A LITTLE BIT SAFER, JUST GIVEN THE FACT THAT I THINK SO MANY INVESTORS ARE A LITTLE BIT NERVOUS STILL ABOUT THE RELIABILITY AND MAYBE

WHETHER OR NOT THIS WOULD MAKE SENSE INDIVIDUALLY FOR THEM TO GO OUT AND BUY BITCOIN. I’M CURIOUS ABOUT THE CONFIDENCE THAT YOU THINK INVESTORS HAVE IN BITCOIN RIGHT NOW AND WHAT YOU THINK THAT AN APPROVAL LIKE THIS POTENTIALLY FOR THE SPOT BITCOIN ETF COULD POTENTIALLY DO TO

FURTHER THAT NARRATIVE AND GIVE INVESTORS A BIT MORE CONFIDENCE? >> WELL, FIRST, I THINK REAL-WORLD EVENTS ARE CONTINUING TO RUN MARKETING FOR BITCOIN. WE HAVE SEEN THE VALUE OF THE DOLLAR CONTINUE TO GO DOWN AS MONEY’S PRINTED BY SUCH A BANKS HERE IN THE UNITED STATES.

WE’VE SEEN ACCESS TO TRANSMITTING MONEY, ATT PROHIBI ALL OVER THE GLOBE AND EVEN HERE IN NORTH AMERICA, SO THE WHOLE WORLD IS DOING MARKETING FOR BITCOIN. I THINK THERE’S A GROWING INTEREST IN BITCOIN, KNOWING THE PROPERT PROPERTIES THAT IT HAS. INVESTORSRE SEEING THERE IS

VALUE TO HAVING A DEFLATIONARY ASSET AS PART OF THEIR PORTFOLIO. FOR YEARS, INVESTORS HAVE USED GOLD AS AN INFLATIONARY HEDGE, AS PART OF THEIR PORTFOLIO. FIDELITY CALLS BITCOIN EXPONENTIAL GOLD BECAUSE UNLIKE GOLD, THERE’S ONLY SO MUCH BITCOIN THAT CAN BE MINED.

GOLD CAN CONTINUE TO BE MINED FOR THE FORESEEABLE FUTURE HERE. SO, WE THINK THAT, YOU KNOW, I ALWAYS ENCOURAGE PEOPLE TO LEARN ABOUT BITCOIN AND LEARN HOW IT WORKS AND LEARN ABOUT ACTUALLY USING THE SYSTEM ITSELF. pSHORT EXPERTISE AND TAKING THAT LEAP,

I THINK THE ETF IS A TOOL TO GIVE INVESTORS A SECURITY TO ACCESS BITCOIN, TO GET EXPOSURE TO THAT AS A PART OF THEIR BITCOIN JOURNEY. HOPEFULLY, EVENTUALLY, OWNING AND USING THE ASSET ITSELF DIRECTLY. >> SO, TO WHAT EXTENT DOES VALUE

FOR THE CURRENCY STILL KIND OF ND IELF DERIVED OFF UTILIZATION VERSUS JUST BEING A HOLDING ASSET TYPE? >> I THINK BITCOIN HAS A NUMBER OF VALUE PROPOSITIONS. I THINK JUST AS A STORE OF VALUE, BITCOIN CAN FULFILL A MAJOR NEED FOR INVESTORS. IF BITCOINEACHED GOLD’S MARKET

CAP, BITCOIN WOULD BE SOMEWHERE AROUND $600,000 A COIN. THAT’S HOW EARLY I THINK WE WERE IN THE STORED VALUE STAGE. IF YOU WANT TO TALK ABOUT ABILITY TO EXCHANGE BITCOIN, BITCOIN IS USED GLOBALLY. MORE AND MORE BUSINESSES ARE ACCEPTING BITCN. AND MORE INDIVIDUALS ARE USING

BITCOIN TO TRANSMIT VALUE. I THINK THAT’S A DIRECT RESULT OF THE GROWING ADOPTION AND APPRECIATION OF UNDERSTANDING FOR BITCOIN. FIRST, YOU COME IN FOR THE STORE OF VALUE NARRATIVE, AND THEN YOU NEED TO TRANSMIT THAT TO CONDUCT COMMERCE OR WHATEVER YOU WANT TO DO WITH YOUR MONEY.

WE ARE SEEING TRANSACTION FEES ON BITCOIN HIGHER THAN THEY’VE EVER BEEN, AND THAT’S A RESULT OF MORE AND MORE PEOPLE USING THIS NETWORK, USING THIS BLOCKCHAIN, USING THIS PROTOCOL. >> JASON, THANK YOU SO MUCH FOR TAKING THE TIME HERE TODAY. RIOT PLATFORM O JON LES, WE

APPRECIATE IT. >> THANK YOU FOR HAVING ME. >> CERTAINLY. >>> WELL, COMING UP, WHAT THIS WEEK’S INFLATION DATA WILL SIGNAL AHEAD OF THE FED MEETING THAT IS SET TO COME. WE’LL SPEAK WITH JEFFRIES’ THOMAS SIMONS ON THE OTHER SIDE OF THIS SHORBREA >>> GIVEN HAWKISH NOTES FROM THE

FED MINUTES IN DECBER AND JOBS NUMBERS THAT CAME OUT LAST WEEK, INVESTORS APPEAR TO BE RETHINKING THEIR BETS ON INTEREST RATE CUTS IN 2024. RIGHT NOW, INVESTORS ARE PRICING IN ONLY FIVE OR SIX RATE CUTS INSTEAD OF THE ORIGINAL SIX OR SEVEN, AND A 75% CHANCE OF THE

FIRST RATE CUT IN MARCH, WHICH ANALYSTED FULLY PRICED IN BY THE START OF THE YEAR. OUR NEXT GUEST FORESAW A CUT IN MARCH, BUT DOES HE STILL THINK SO? LET’S BRING IN THOMAS SIMONS TO DISCUSS MORE. LET’S DISCUSS THIS. ANDHERE YOUR THINKING LIES

RIGHT NOW AS WE’RE JUST IN THE FIRST WEEK, SECOND WEEK NOW, BEGINNING IN 2024. >> YEAH, YOU KNOW, IT SEEMED LIKE IN THE — THAT DECEMBER PERIOD AFTER RATES STARTED TO FALL, EVERYBODY HAD TO REDO THEIR OVERALL OUTLOOK, AND THEN

THEY DID, AND NOW IT SEEMS LIKE WE’RE TALKING ABOUT THAT AGAIN. I’VE BEEN A LITTLE BIT MORE PATIENT, AND WE’LL SEE IF THAT ACTUALLY ENDS UP BEING THE CORRECT MOVE HERE, BUT I THINK THAT JUST WITH THE SENSE OF, YOU KNOW, KIND OF CONTINUED

DISINFLATION AND AS INFLATION CONTINUES TO GO DOWN, HOW STEADY NOMINAL RATES INCREASES THAT REAL RATE, THIS CONCEPT THAT GOVERNOR WALLER AND OTHERS AT THE FED HAVEALKE ABO RECENTLY, THAT WAS ALWAYS KIND OF MY PRIMARY MOTIVATION FOR WHY I THOUGHT THEY WERE GOING TO BE

CUTTING AS SOON AS MARCH, MONTHS AHEAD, WE WILL SEE SOME – MORE POSITIVE NEWS ON INFLATION. THEN IT SEEMED LIKE THE ECONOMY WAS PICKING UP A LITTLE BIT MORE, AND I WAS STARTING TO KIND OF, YOU KNOW, FEEL A LITTLE STRONGER ABOUTT. FRIDAY, AT 8:30, MAYBE A LITTLE

WEAKER ABOUT IT. BY ABOUT 9:00 ON FRIDAY, I THINK I WAS BACK TO BEING MORE CONFIDENT, BECAUSE THE TOPLINE NUMBERS FOR THE EMPLOYMENT DATA WE GOT ON FRIDAY, PRETTY SOLID, BUT MOST OF THE DETAILS, I THINK, ARE TELLING A STORY THAT DEMAND FOR LABOR HAS COOLED O

QUG TO SEE THAT MORE ON THE SUPPLY SIDE AS WE GO FORWARD. >> THOMAS, I’M CURIOUS TO GET YOUR PERSPECTIVE ON HOW THIS COMPARES TO WHEN YOU’VE DONE THIS PRIOR, WHEN YOU’RE FRTRYIN TO GAME OUT FED OFFICIALS AND POLICYMAKERS AND WHAT THAT NEXT

MOVE IS GOINGO B IS IT MUCH MORE DIFFICULT THIS TIME AROUND, GIVEN THE FACT GNAT SCENARIO THAT WE ARE IN RIGHT NOW IS ALMOST UNLIKE ANYTHING WE’VE SEEN IN THE PAST? >> YEAH. I MEAN, IT’S EXTRAORDINARILY DIFFICULT. FOR BETTER OR WORSE, THE

MAJORITY OF MY CAREER HAS BEEN IN THIS SORT OF 2010s PERIOD WHERE FED RATE FORECASTS WEREN’T ALL THAT HAR TO DO. THEN THEY GOT A LOT EASIER TO DO WHEN THE FED STARTED RAISING RATES BECAUSE THEY JUST TOLD US THAT THEY WERE GOING TO RAISE

RATES 75 BASIS POINTS AT A TIME. NOW, I THINK YOU SEE THE DIFFICULTY, NOT ONLY ON THE PRIVATE SIDE BUT ALSO WITH THE SEP. PRS CONFERENCE, THIS ST MEETI PICK-APART QUESTION PROCESS OF THE INCONSISTENCIES OF ONE THING VERSUS ANOTHER. AND YOU WORK — YOU HAVE TO DEAL

WITH THAT ON THE PRIVATE SIDE TOO. SO, I DO THINK THAT WE ARE IN RELATIVELY UNCHARTED TERRITORY, JUST GIVEN THE IMPACT OF COMMUNICATION ON FINANCIAL CONDITIONS AND THE FOCUS ON THE MARKETS AND HOW THAT AFFECTS THE ECONOMY, BUT AT THE END OF THE

DAY, I THINK IT’S — THE PLAYBOOK HAS BEEN SET FROM MUCH LONGER AGO, WHICH IS THIS NATURE OF THE ECONOMY OVERHEATS A LITTLE BIT, FED RAISES RATES, POTENTIALLY THEY LEAVE THEM HIGH FOR TOO LONG, AND THINGS START SLOW DOWN. I DON’T THINK IT’S — MARCH MAY

BE A LITTLE BIT TOO EARLY TO START THINKING ABOUT THAT, BUT CERTAINLY IN THE SECOND HALF OF THE YEAR, I THINK THAT’S REASONABLE. >> WHEN DO YOU THINK WE SEE A STRONGER TURNOVER IN THE CONSUMER AS WELL, PLAYING INTO ALL THIS AS THE FED IS

CONTINUING TO KIND OF BALANCE ITS OWN SCALE OF FULL EMPLOYMENT PLUS WHERE THE CONSUME IS LINING UP? >> AGAIN, I HAVE THOUGHT WE WERE GOING TO SEE THAT AS SOON AS THIS HOLIDAY SEASON, ALL THIS NOTION OF BUY NOW/PAY LATER BECOMING TOO MUCH, FUEL FOR

CONSUMPTION AND CERTAINLY THE OTHER CREDIT CARD METRICS AND THINGS STARTING TO LESSEN. >> HEAVY PROMOTIONAL CYCLE W SHOULD ADD AS WELL, SO NOT NECESSARILY APPLES TO APPLES. >> THAT’S A GOOD POINT, AND I THINK THAT THE FULL STORY, FULLY, NEEDS TO BE WRITTEN AT SOME POINT HERE.

WE’RE JUST LOOKING AT THE INITIAL GOINGS, RIGHT? BUT IN ANY CASE, IT SEEMS LIKE IT DEFINITELY WASN’T AS WORSE AS IT COULD HAVE BEE SO, THE RETHINK THAT I HAVE BEEN HAVING ON THIS IS WE FOCUS A LOT ON THESE CREDIT MEASURES AND BUY NOW/PAY LATER AND THINGS LIKE

THAT, AND THAT AFFECTS THE SORT OF BOTTOM TWO-THIRDS OF THE INCOME SPECTRUM QUITE A BIT, AND I HAD THOUGHT THERE WAS THIS NOTION THAT WE HAD INFLAON FATIGUE, THAT PRICE LEVEL PROBLEMS THAT WERE GOING TO CAUSE A SLOWDOWN IN SPENDING,

BUT IT SEEMS LIKE THE TOP-END CONSUMER HAS ACTUALLY BEEN ABLE TO SORT OF OFFSET A LOT OF THE WEAKNESS THAT WE SEE IN THE BOTTOM. THE MUDDLE-THROUGH STORY FOR THE ECONOMY, I THINK, IS THAT, WHICH IS THAT YOU CAN HAVE THIS K-SHAPED RECOVERY WHERE PEOPLE

WHO DO BETTER SUPPORT MORE GROWTH AND SORT OF VICE VERSA. IT DEPENDS WHERE THE FULCRUM OF THAT “K” IS. >> DO YOU THINK THE FED WILL BE ABLE TO GET INFLATION UNDER CONTROL, AVOID ANY REAL DETERIORATION IN THE JOBS MARKET, AND BE ABLE TO AVOID A

RECESSION? WHERE DO YOU STAND ON THAT? >> I DON’T THINK THAT IT’S PARTICULARLY LIKELY THAT YOU GET ALL THE WAY DOWN TO 2% WITHOUT GETTING UNEMPLOYMENT UP TO, LIKE, AT LEAST SORT OF 4 TO 4.5%. I MEAN, THERE’S HUMAN COST TO THAT WITHUNPLOYNT GOING UP,

BUT THAT’S NOT WHERE ANY OF THE SORT OF DISASTER BIG RECESSION SCENARIO, HARD LANDING SCENARIOS THAT WE HAD TALKED ABOUT BEFORE. I THINK THAT’S REASONABLE. THE PROBLEM THAT I HAVE IS THAT ONCE YOU DO GET INFLATION UP TO TWO OR DOWN TO 2% AND

UNEMPLOYMENT HOVERS BETWEEN 4 T 4.5%, THE ECONOMY STILL FEELS VERY SENSITIVE AND RIPE TO GENERATE INFLATION AGAIN AFTERWARDS. WE ARE STILL IN A DEMOGRAPHIC ENVIRONMENT THAT’S SEEING THE PRIME AGE WORKFORCE CONTINUE TO DWINDLE, AND THAT JUST MAKES LABOR MORE SENSITIVE TO SUPPLY

SHOCKS AND DAND SWINGS, AND YOU KNOW, THE IDEA BEING THAT THAT WOULD LEAD TO HIGHER WAGES AND ANOTHER ROUND OF INFLATION. SO, THAT’S THE FED’S REALLY TRICKY JOB IS, YOU KNOW, IF THEY ARE GOING TO BE CUTTING RATES, I DON’T THINK THEY WANT TO CUT

RATES FIVE OR SIX TIMES LIKE THE MARKET HAS PRICED IN. MULE-TOUGH, I THINK MAYBE THREE MIGHT BE MORE APPROPRIATE. I THINK THAT MAY BE WHAT’S IN THE SEP. BUT THEN WE GET INTO A WHOLE OTHER DISCUSSION OF WHETHER OR NOT 2.5% IS REALLY NEUTRAL. THAT’S ANOTHER HEADACHE FOR

THEM. >> LOT OF CONVERSATIONS THAT WE ARE GOING TO BE HAVING ON THIS OVER THE NEXT SEVERAL MONTHS. TOOK THOMAS, ALWAYS GREAT TO HAVE YOU, JEFFRIES SENIOR U.S. ECONOMIST. >>> WE WANT TO GET TO SOME BREAKING NEWS. TWILIO’S FOUNDER JEFF LAWSON ANNOUNCING THAT HE IS STEPPING

DOWN AS CEO, EFFECTIVE IMMEDIATELY. THE COMPANY’S PRESIDENT OF COMMUNICATIONS IS GOING TO BE WI TWO ACTIVIST INVESTORS UGES PUSHING FOR SIGNIFICANT CHANGES AT THE COMPANY. OR AT LEAST LOOKING AT THE IMMEDIATE REACTION IN SHARES WITH THE STOCK UP JUST ABOUT 7%. OF COURSE, THOUGH, THE QUESTION

WITH THIS CHANGE, WE HAVE COZEMA, WHO IS GOING TO BE TAKING OVER FOR JEF LAWSON, AT LEAST IN THE INTERMEDIATE, WHETHER OR NOT THAT’S REALLY GOING TO DO ENOUGH TO SATISFY THE ACTIVIST SHAREHOLDERS AND EXACTLY SOME OF THE CHANGES THEY

HAVE BEEN PUSHING FOR OVER THE LAST SEVERAL WEEKS, AND BARRETT OUT THIS MORNING, “SOME INVESTORS HAVE BEEN PUSHING FOR CHANGE. THOSE METRICS IMPROVED SIGNIFICANTLY OVER THE PAST YEAR.” SOME REACTION WE’RE SEEING IN THE SHARE PRICE TODAY. >> OVER 1.7 TRILLION

INTERACTIONS A YEAR ON BEHALF OF 306,000 CUSTOMERS IS WHAT THE COMPANY REIT ERATED IN ITS STATEMENT HERE AND NOW THAT COMING FROM JEFF LAWSON, WHO’S GOING TO BE DEPARTING FROM THE ROLE. MOST NOTABLY HERE, COMING OFF A YEAR WHERE ACTIVIST CAMPAIGNS

CERTAINLY HAD A LOT OF WEIGHT TO THROW AROUND, WHETHER THAT BE AT DISNEY OR SOME OF THE OTHER HOUSEHOLD NAMES, HERE FOR TWILIO, I THINK MOST NOTABLY, IT COMES BACK TO WHAT TYPE OF PERFORMANCE THEY’RE EXPECTING FROM CHIP HANDLER IN THIS POSITION.

A PERSON WHO HAS SPENT OVER TWO DECADES AT GE IN DRIVING A HIGH-TECH AVIATION DIVISION PLUS N SO PERHAPS THAT UNDERSTANDING OF SOME OF THE BUSINESS, THE OPERATIONS, THE CULTURE, THAT’S GOING TO PERHAPS COME TO MORE — MORE TO LIGHT HERE, BUT LARGER

QUESTION OF WHERE THIS WILL SATISFY SOME OF THOSE ACTIVISTS OUT THERE TOO. >>> COMING UP, WE’VE GOT A NEW REPORT FROM “THE WALL STREET JOURNAL” ADDING TO CONCERNS AROUND ELON MUSK. WE’LL SPEAK WITH CRAIG IRWIN ON TESLA’S BIGGEST RISKS AHEAD OF UPCOMING EARNINGS.

>>> IT WAS A ROLLER COASTER 2023 FOR TESLA FROM THE PRICE CUTS TO THE LAUNCH OF ITS MUCH-ANTICIPATED CYBERTRUCK, BUT THE STOCK STILL GAINED OVER 100%. NEW REPORT FROM “THE WALL STREET JOURNAL” POINTS TO CONCERNS FOR THE COMPANY, EXECUTIVES FROM TESLA AND SPACEX CLAIMING

UNEASINESS OVER ELON MUSK’S ILLEGAL DRUG USE. WITH THE EV GIANT GEARING UP TO REPORT FOURTH QUARTER EARNINGS IN THE COMING WEEKS, WHAT ARE THE BIGGEST RISKS FOR INVESTORS? WE’VE GOT THE MAN, THE MYTH, THE LEGEND HIMSELF, CIG IRWIN, ROTH MKM SENIOR RESEARCH ANALYST.

GREAT TO SEE YOU IN PERSON. >> WHAT AN INTRO. >> WE HAD TO GIVE YOU THE INTRO. AT THE END OF THE DAY, WHEN YOU THINK ABOUT THIS MOST RECENT OVERHANG, OF COURSE, THERE HAVE BEEN LARGER QUESTIONS ABOUT MUSK’S CONDUCT, BOTH INSIDE OF AND OUTSIDE OF THE COMPANY.

WHAT DOES THIS LATEST KIND OF DRUDGE OF NEWS REALLY PUT IN THE THROES FOR TESLA SHAREHOLDERS? >> LET’S BE BRUTALLY HONEST HERE, RIGHT? DRUGS ARE BAD, AND I’M WELL KNOWN FOR NOT BEING A FAN BOY. I’M NOT A FAN OF ELON MUSK HIMSELF.

I’M A HUGE FAN OF HIS SUCCESS IN EVs. I THINK THIS HAS BEEN KNOWN TO PEOPLE IN GOVERNMENT FOR MANY YEARS. I FIRST HAD A CONVERSATION WITH SOMEONE IN A RELEVANT ENTITY ABOUT THIS MORE THAN FIVE YEA AGO. AND I THINK THAT THERE ARE

SEVERAL OTHER PEOPLE THAT COULD HAVE BEEN HIGHLIGHTED IN THAT ARTICLE. IT SMELLS LIKE A HIT PIECE. WHY NOW? THAT’S THE BIGGER QUESTION. YOU KNOW, IT DOESN’T MAKE A LOT OF SENSE TO ME, GIVEN THAT TESLA’S REAL EXETING THEY’RE DOING A PHENOMENAL JOB AT SPACEX.

WE CAN TALK ABOUT REAL RISKS THAT DON’T HAVE ANYTHING TO DO WITH ELON’S RECREATIONAL CHEMISTRY. >> BUT IS THERE, THOUGH, SORT OF OVERHANG JUST IN TERMS OF SOME OF THAT UNCERTAINTY, GIVEN THE FACT, WHETHER OR NOT INVESTORS, SHAREHOLDERS SHOULD BEING LOOING

WHAT THAT COULD MEAN FOR LEADERSHIP OF THE COMPANY DOWN THE LINE? >> HOW DO YOU EVALUATE THAT? >> I THINK ELON MUSK IS THE KEY MAN AT TESLA. HE’S THE KEY MAN AT TESLA. YOU CAN PUT HIM IN ONE OF HIS ROCKETS AND SEND HIM TO MARS.

HE’S STILL THE KEY MAN AT TESLA. HE IS A COLORFUL, CREATIVE CHARACTER. HE IS KNOWN AS BEING A DIFFICULT, CHARISMATIC MAN, AND YOU KNOW, I THINK IF HE LEAVES TESLA, WE HAVE A BIG PROBLEM. HE’S THE ONE THAT BASICALLY HAS BEEN THE CREATIVE DRIVE BEHIND

THIS COMPANY, AND YOU KNOW, I GIVE HIM FULL CREDIT FOR THE SUCCS OF THE EV INDUSTRY TODAY. I THINK THAT MUSK DESERVES TREMENDOUS CREDIT FOR THE SUCCESS OF THE INDUSTRY, AND THE INDUSTRY’S INEVITABLE NOW, AND THAT WOULD NOT HAVE HAPPENED WITHOUT MUSK.

>> WHAT ARE YOUR BIGGEST RISKS — BY THE WAY, YOU WON EUPHEMISM OF THE DAY WITH RECREATIONAL CHEMISTRY — BUT AT THE END OF THE DAY, WHAT ARE THE BIGGEST RISKS TO TESLA THAT YOU ARE LOOKING TO AND TRYING TO EVALUATE IN 2024? >> IT’S DEMAND.

DEMAND AND OBVIOUSLY COMPETITION. SO, THE LIGHTNING, MOST VISIBLY, CUT ITS FORECAST IN HALF. SELL-SIDE CONSENSUS NUMBE FOR ABOUT 22% GROWTH, 20% UNIT GROWTH, 20% REVENUE GROWTH, STILL SEEMS A LITTLE AGGRESSIVE. WE’RE GOING TO HAVE CONTINUED EVER SINCE EVEN IN THE FIRST QUARTER, EVERYBODY WAS SAYING

THAT THE SECOND QUARTER WOULD BE THE BOTTOM. WELL, NO, IT WASN’T. THIS LAST QUARTER WAS NOT THE BOTTOM. I DON’T THINK THAT FOURTH QUARTER MARGINS ARE LIKELY TO BE PARTICULARLY STRONG. I THINK THEY ARE QUITE LIKELY TO BE WEAK, GIVEN WE DID SEE A 5% BEA ON UNITS.

SO, WE PROBABLY SEE CONTINUED MARGIN WEAKNESS THROUGHOUT THIS YEAR AS THEY PUT THROUGH PRICE CUTS. THEY DEAL WITH ISSUES IN CHINA. HAVING BYD LARGER THAN THEM IN CHINA IS A HUGE DEAL. THAT’S THEIR MOST IMPORTANT, MOST PROFITABLE MARKET. THEY HAVE FUNDAMENTAL STRUCTURAL CHALLENGES THAT THEY NEED TO

DEAL WITH, AND IT BRINGS US BACK STRATEGIC BUNGLES OVER THE LAST COUPLE YEARS. >> GOING OFF THAT, WHAT YOU JUST SAID ABOUT BYD AND THE FACT THAT THEY DID OVERTAKE TESLA, WHAT DO YOU THINK THAT SIGNALS MORE BROADLY SPEAKING, NOT JUST ABOUT TESLA BUT ABOUT CHINA’S INVOLVEMENT AND MAYBE LEADERSHIP

HERE GOING FORWARD WITHIN THE EV SPACE? >> YEAH. I MEAN, IT’S A VERY IMPORTANT QUESTION. THEY SHOULD HAVE LAUNCHED THE MINI-CAR. THEY WERE SUPPOSED TO HAVE LAUNCHED THAT OR AT LEAST MADE THE DECISION TO LAUNCH THAT IN ’19, AND THEY PUNTED. OSTENSIBLY BECAUSE IT WOULD HE

BEEN GROSS MARGIN DILUTIVE. LOOK AT MARGINS NOW. INDIA, THEY HEMMED AND HAWED ABOUT ENTERING THAT MARKET. SO, TIMES OF INDIA HAS CONFIRMED THERE’S A FACILITY THAT’S GOING TO GET BUILT. M MUSK HAS TO START MAKING MORE NOISE ABOUT THAT. THESE ARE BIG STRUCTURAL

CHALLENGES THAT IF HE WANTS TO BE THE PLAYER WITH H 20 MILLION UNITS THAT HE DREAMS ABOUT — I DON’T ENDORSE THAT NUMBER, BUT TO START GETTING THERE, HE’S GOING TO HAVE TO DO A LOT BETTER JOB INTERNATIONALLY AND THEN AS FAR AS DIVERSITY OF OFFERING.

>> SO, FOR ALL OF THE DIFFERENT HATS THAT ELON MUSK WEARS, OVER THIS TIME, YOU’RE TALKING ABOUT MORE CONSIDERED PRICE CUTS, POTENTIALLY, ESPECIALLY WITHIN CHINA, TO TRY TO RETAIN THE CONSUMER MINDSET IN THAT REGION, WHICH IS SHIFTING MORE NATIONALISTIC, IF YOU WILL, AND

THEN ADDITIONALLY, YOU GOT TO THINK ABOUT WHERE, WITHIN THE PRODUCTIONS THAT THEY BROUGHT ONLINE, WHERE DO THEY SCALE THAT BACK AS SOME OF THE OTHER U.S. WELL WITH THEIR OWN OPERATIONS TO TRY AND SATISFY SOME OF THE MORE INTERNATIONAL AMBITIONS

THAT THEY DO HAVE IN THEIR EV TARGETS THAT THEY’VE SET FORTH? >> SO, I DON’T SEE A LOT OF SCALING BACK OF MANUFACTURING, PER SE. I THINK THE IDEA OF MAYBE SHANGHAI GOING TO THREE MILLION UNITS, WE SHOULD CONSIDER THAT ON HOLD.

SHANGHAI WILL PROBABLY LOOK TO OPTIMIZE ITS UTILIZATION AT THAT FACILITY. I THINK WE SHOULD REALLY LOOK AT, YOU KNOW, INDIA. I THINK WE SHOULD LOOK AT MEXICO AND POTENTIALLY CANADA. AND HOW DO THEY SERVE — HOW DO CUSTOMER MORE PROFITABLY? I THINK THOSE ARE THE MOST IMPORTANT QUESTIONS.

>> CRAIG IRWIN, GREAT TO HAVE YOU, ESPECIALLY IN STUDIO WITH US TODAY. ROTH MKM SENIOR RESEARCH ANALYST. >>> COMING UP, LIGHTS, CAMERA, ACTION, ALL THE BIG NAMES FROM HOLLYWOOD SHOWING OUT FOR LAST NIGHT’S GOLDEN GLOBES. WAS IT A BIG NIGHT FOR STREAMERS?

WE’RE GOING TO DISCUSS ON THE OTHER SIDE. WE’LL BE RIGHT BACK. >>> HE WAS A LAS VEGAS IS I’M I’M AKIKO FUJITA. I’M HERE TO GUIDE YOU THROUGH SOME OF THE BIGGEST TECAND NEW IDEAS THAT WILL HELP TRANSFORM YOUR INVESTMENT PORTFOLIO IN 2024. LET’S TAKE A LOOK INSIDE. ♪

THE CONFERENCE OFFICIALLY KICKS OFF ON TUESDAY, BUT WE’RE HERE INSIDE CES UNVEILED TO GIVE YOU THE INSIDE SCOOP. ♪ >>> HELLO. NICE TO MEET YOU. >> HELLO. NICE TO MEET YOU TOO. READY? >> HOW’S MY FORM? FOURTH TIME. HERE WE GO. >> YEAH! >> HERE ARE THE THREE THEMES

DEFINING THIS YEAR’S BIG TECH EVENT. FIRST OFF, ARTIFICIAL INTELLIGENCE. ALL THE COMPANIES ARE SHOWING OFF THEIR LATEST INNOVATIONS. WE ARE AT THE BOOTH FOR A FRENCH HEALTH TECH COMPANY THAT’S DEVELOPED THIS MIRROR. IT’S AN INTERACTIVE MIRROR THAT USES ARTIFICIAL INTELLIGENCE A L DETERMINES YOUR MOOD.

>> HOW’S YOUR DAY BEEN SO FAR? >> MY DAY HAS NOT BEEN GREAT, AND I HAVEN’T GOTTEN A LOT OF SLEEP. >> WE ALL HAVE OUR MOMENTS OF FEELING DOWN. IT’S ESSENTIAL TO ACKNOWLEDGE IT, JUST LIKE A RAINY DAY MAKES WAY FOR SUNSHINE,OUROOD CAN IMPROVE.

>> THE SECOND THEME, AUTO TECH. THE WORLD’S LARGEST CAR MAKERS ARE COMING HERE TO UNVEIL EVERYTHING FROM AUTONOMOUS VEHICLES TO FLYING CARS. WE’VE ALL HEARD ABOUT SELF-DRIVING CARS. THISOMPA IS BUILDING SELF-DRIVING STROLLERS. IT’S ROCKING. ROCKING THE BABY. SOMETHING EVERY MOTHER CAN APPRECIATE. EVERY FATHER CAN APPRECIATE.

YOU SEE THE LIGHT HERE? THE GREEN LIGHT HERE SHOWS THAT AN IF I PRESS IT A LITTLE, IT WILL STOP TO MAKE SURE THE BABY DOES NOT RUN AWAY. AND FINALLY, THEME NUMBER THREE. THE FUN AND UNIQUE TECH YOU WON’T SEE ANYWHERE ELSE.

WE ARE IN FRONT OF TH PAT C BOOTH. THIS GUY IS INSIDE VIRTUAL REALITY. THE COMPANY IS A MIXED REALITY SOFTWARE COMPANY, AND IT ALLOWS USERS TO BUILD ALL THE TOOLS TO CREATE MUSIC IN VIRTUAL REALITY. THEY PARTNER WITH MUSICIANS. THEY LET YOU CREATE DRUM SETS.

THIS GUY’S GOT ITOING I’M GOING TO GIVE IT A SHOT. HERE WE GO. >> YEAH. ♪ >> NOW WE’VE GOT MULTIPLE LAYERS OF BEATS GOING. OH, WOW. LOOK AT THIS. I FEEL LIKE I’M SITTING IN FIRST CLASS. THISS JU WHAI NEED RIGHT NOW. WE’RE GOING TO BE HERE ALL WEEK.

DON’T MISS OUR INTERVIES WITH THE TOP TECH LEADERS AND DEMOS OF THE LATEST GADGETS. >>HY GOSH, 13 MORE MINUTES. YOU CAN TYPE, RIGHT, JUST BY LOOKING? CAN WE HAVE HIM SPELL YAHOO! FINANCE? >> SURE. >> YAHOO! FINANCE IS ON THE GROUND FOR CES 2024.

JOIN US TUESDAY THROUGH FRIDAY FOR ALL YOUR COVERAGE. >>> IT WAS A BIG NIGHT FOR HOLLYWOOD ON SUNDAY. THE GOLDEN GLOBES MARKED THE FIRST MAJOR AWARDS EVENT OF THE YEAR IN AN INDUSTRY THAT WAS HAMPERED BY A SERIES OF MONTHS-LONG STRIKES AND ALSO TOO

MANY — TOOK PLACE AT A NEW HOME. OPPENHEIMER WAS THE BIGGEST WINNER WITH FIVE AWARDS, INCLUDING BEST PICTURE IN THE DRAMA CATEGORY AND BEST DIRECTOR. SURPRISINGLY, “POOR THINGS” WON OVER “BARBIE” FOR BEST PICTURE FOR A MUSICAL OR COMEDY. “BARBIE” DID GET THE EVENT’S

NEWEST AWARD, THOUGH, SO WE SHOULD NOTE THAT. I’M JUST GOING TO BRING US BACK TO “THE BEAR.” I THINK “THE BEAR” DID EXTREMELY WELL. JEREMY ALLEN WHITE, AYO EDIBIRI. GOOD STUFF FOR TH BEAR. IF YOU WANT TO LOOK UP TICKER SYMBOLS ON THE PLATFORM, LOOK NO FURTHER THAN DIS, DISNEY.

>> STREAMERS WERE ONE OF THE BIG WINNERS LAST NIGHT. WHEN YOU TALK ABOUT “THE BEAR,” THAT’S ON HULU, OWNED BY DISY. THEN YOU TALK ABOUT SOME OF THE OTHER SUCCESS LAST NIGHT WITH “SUCCESSION,” HBO, WITH MAX. NETFLIX COMING AWAY WITH THREE AWARDS FOR “BEEF.”

THAT WAS A QUESTION GOING INTO THE NIGHT AS WELL AS SOME OF THE OTHER BIG NAMES WHEYOU TK ABOUT “OPPENHEIMER” AND “BARBIE,” WE SAW HOW SUCCESSFUL SOME OF THESE STREAMERS WERE GOING TO BE. I THINK THEY STACK UP. >> ARE AWARDS SHOWS STILL DOING WELL?

I THINK THAT’S THE LARGER QUESTION. >> WE HAVE TO WAIT FOR THE NUMBERS ON THAT ONE. >> EXACTLY. WE’RE WAITING FOR THE NUMBERS. I MEAN, AT THE END OF THE DAY, A LOT OF WHETHER IT BE THE FWGOLD GLOBES AND THE ACTORS, ACTRESSES, THEY’VE CHAST A LOT F

DOUBT ON WHETHER THEY NEED TO BE ERE. >> WE’LL SEE WHAT THE VIEWERSHIP LOOKS LIKE. >>> LET’S LOOK AT THE MARKETS BEFORE WE LET YOU GO. THE DOW IN NEGATIVE TERRITORY ON THE BACK OF SOME OF THE LOSS WE WERE SEEING FROM BOEING. DOW OFF JUST ABOUT 80 POINTS.

S&P AND NASDAQ TRADING TO THE UPSIDE. THAT’S ALL FROM US TODAY. RACHELLE AKUFFO HAS YOU FOR THE NEXT HOUR. SEE YOU TOMORROW. ♪ >>> WELCOME TOYAHOFINAE.” IT’S 11:00 A.M. ON THE EAST COAST. 8:00 A.M. ON THE WEST. I’M RACHELLE AKUFFO. MORE BAD NEWS FOR BOEING.

THE JETLINER 737 MAX 9 PLANES ARE BEING GROUNDED UNTIL THE FEDERAL AVIATION ADMINISTRATION DEEMS THEM SAFE TO FLY. WE’LL SPEAK WITH AICENSED FAA PILOT COMING UP THIS HOUR. >>> AND STOCKS SAW THE WORST START TO THE YEAR SINCE 2016. BUT WITH INFLATION DATA AND BANK

EARNINGS ON TAP THIS WEEK, WHAT CAN INVESTORS EXPECT? >>> PLUS APPLE’S MUCH-ANTICIPATED APPLE VR HEADSET HAS A RELEASE DATE. WILL THIS BE THE TURNAROUND THE TECH GIANT NEEDS? >>> LET’S LOOK AT HOW THE MAJOR INDICES ARE FARING. A MIXED PICTURE HERE AT THE MOMENT.

THE DOW OFF A QUARTER OF A PERCENT. VOLATILE THIS MORNING ON THE BOEING NEWS. WE SEE CURRENTLY DOWN 10 POINTS SO FAR. THE S&P 500 IN THE GREEN, UP ABOUT A HALF PERCENT. SEEING ENERGY THE BIGGEST LAGGARD IN TERMS OF SECTORS, STILL SEEING SMALL GAINS THIS MORNING.

TECH-HEAVY NASDAQ IN THE GREEN, UP ABOUT 167 POINTS, JUST OVER 1%. BIG TECH ON THE RISE SO FAR THIS MORNING. NO THANKS TO TESLA AS WE’LL GET INTO THAT LATER. LET’S CHECK IN WITH THE TREASURY MARKET AS WELL. AS WE TAKE A QUICK PEEK HERE, WE

SAW TESLA SHARES UNDER PRESSURE WEIGHING ON THE NASDAQ. AS WE LOOK AT WHOLE THE PICTURE STARTS FOR THEEK, THE FIVE-YEAR TREASURY YIELD, DOWN ABOUT 1.5%. THE 30-YEAR DOWN ABOUT 1% ON THE DAY SO FAR. >>> WE HAVE OUR EYES ON BOEING SHARES TODAY, SELLING OFF AS THE

COMPANY’S MAX 9 PLANES ARE BEING GROUNDED UIL THE FAA DEEMS THEM SAFE TO FLY. THIS IS FOLLOWING AN ACCIDENT ON FRIDAY WHERE A SIDE PANEL WAS BLOWN OUT MIDAIR ON AN ALASKAN AIRLINES FLIGHT FROM PORTLAND, OREGON TO ONTARIO, CALIFORNIA. A SMALL SECTION OF THE FUSELAGE

BLEW OUT AT 16,000 FEET. THERE WERE NO DEATHS AND THE FLIGHT RETURNED SAFELY TO PORTLAND. THE NATIONAL TRANSPORTATION SAFETY BOARD FOUND THE PANEL IN THE BACKYARD OF AN OREGON TEACHER’S HOME. THIS INCIDENT COMES A WEEK AFTER THE AEROSPACE GIANT WARNED CUSTOMERS ABOUT POTENTIAL LOOSE

BOLTS IN SOME OF ITS 737 MAX JETS. HOW ARE PILOTS FEELING ABOUT THESE AIRCRAFT? WE HAVE ANTHONY ROMAN, THE FOUNDER AND CEO OF AC ROMAN & ASSOCIATES AS WELL AS AN FAA LICENSED COMMERCIAL PILOT. THANK YOU FOR JOINING US. FOR PEOPLE WHO ARE STILL GETTING

UP TO SPEED ON THIS STORY HERE, PARTICULAR DOOR AND HOW PLANES TEND TO USE IT VERSUS A TYPICAL EMERGENCY DOOR, HOW THIS SPACE IS USED. >> THE SPACE IS USED AS AN EMERGENCY DOOR, GIVEN THE TYPE OF CONFIGURATION OF THE SEATS IN

THE AIRPLANE THAT ACTUALLY IS REQUESTED BY THE AIRLINE DURING THE ORDER PROCESS. SECOND EMERGENCY DOOR EXIT, THEN A DOOR PLUG IS USED VERY SIMILAR TO A DOOR. BUT THERE’S NO ACCESS TO THAT DOOR FROM THE INSIDE OF THE AIRCRAFT. QUITE FRANKLY, THE QUESTION REMAINS, WAS THAT DOOR DESIGN

FLAWED OR WAS IA MEANICHO INCORRECTLY CLOSED THE DOOR PRIOR TO FLIGHT. >> THANKFULLY THIS HAPPENED AT 16,000 FEET. STILL TERRIFYING, BUT VERSUS BEING AT CRUISING ALTITUDE. FOR PEOPLE ON THE PLANE IN THAT SORT OF ENVIRONMENT, THAT WOULD THAT FEEL LIKE? WHAT WOULD BE HAPPENING INSIDE

THE PLANE? >> IT’S A TERRIFYING PERIENCE, FRANKLY. THEY ARE QUITE FORTUNATE, YES, THAT IT HAPPENED AT A LOWER ALTITUDE WHERE THE AIR IS A BIT HEAVIER AND THICKER AND SO THE DECOMPRESSION WOULD NOT HAVE BEEN AS TERRIBLY VIOLENT AS IT WOULD HAVE BEE AT 32,000 FEET.

YET EXTREMELY DANGEROUS. WHEN THAT HEAVY DOOR IS EJECTED FROM THE FUSELAGE, THEY ARE QUITE FORTUNATE, ONE, THAT IT DID NOT HIT THE AIRCRAFT, THE SMALL WING,ND TL AND THE REAR. THE AIRPLANE WOULD LIKELY HAVE LOST CONTROL AND EVERYONE WOULD HAVE BEEN LOST.

IF YOU’RE IN THAT AIRCRAFT WHEN THAT EXPLOSIVE DECOMPRESSION OCCURS, FRANKLY ITS A EXPLOSIVE SOUND THAT MUST HAVE TERRIFIED THE PASSENGERS. THEY MUST HAVE FELT THAT THIS WAS THE END. SIMPLY, THE AIR RUSHES OUT AT HURRICANE FORCE FROM THE CABIN AND ANYTHING THAT WAS NOT

SERED,NY OBJECTS, SOFT AND HARD, WOULD FLY OUT OF THAT HOLE WHERE THE DOOR WAS EJECTED AND THAT IN ITSELF COULD CAUSE SEVERE INJURY OR DEATH IF A PASSENGER IS HIT WITH A HAR OBJECT FLYING OUT. TERRIBLE EXPERIENCE. >> ANTHONY, WHEN WE THINK OF

WHERE WE GO FROM HERE, A HORRIBLE EXPERIENCE FOR THOSE ON THE FLIGHT, BUT WHAT ABOUT THE WAKE-UP CALLS IN TERMS OF THE TRAINING NEEDED AND INVESTIGATIONS NEEDED TO SECURE THESE PLANES? >> WELL, I THINK TW PERFORMED SUPERBLY, FRANKLY. THEY WERE DISCIPLINED. THE FLIGHT ATTENDANTS WHOSE

PRIMARY RESPONSIBILITY IS CERTAINLY NOT SERVING FOOD OR HELPING YOUIND UR AT, IT CERTAINLY IS SAFETY. SAFETY FIRST, AND COORDINATING THE EMERGENCY PROCEDURES WHEN AN INCIDENT LIKE THIS HAPPENS. IN THIS CASE, THE RECORDINGS REFLECT THAT THE FLIGHT ATTENDANTS PFORM SUPBLY AND PROBABLY SAVED MANY PASSENGERS.

THE FLIGHT CREW PERFORMED AS EXPECTED, PROFESSIONALLY, COMMUNICATING WITH AIR TRAFFIC CONTROL, AND DESCENDING AT A PROPER DESCENT RATE AND LANDING THE PLANE SUCCESSFULLY. MISSING A DOOR CAN CAUSE SOME CONTROL DIFFICULTIES, FLUTTER ON THE AIRCRAFT WHICH CAUSES SHAKING OF THE CONTROLS IN THE

COCKPIT AND OTHER DIFFICULT MANEUVERING-TYPE OF PROBLEMS. THE FLIGHT CREW, SUPERB. >> YOU HAVE TO HAVE NERVES OF STEEL IN THAT SORT OF ENVIRONMENT WHEN EVERYTHING IS HAPPENING LIKE THAT. I DO WANT TO ASK YOU ABOUT SOME OF THE WARNING SIGNALS. WE’RE SEEING REPORTS THAT THERE

WERE SOME CONCERNS ABOUT DEPRESSURIZATION ISSUES WITH THIS AIRCRAFT. HOW DIFFICULT IS IT FOR STAFF TO VOICE THEIR CONCERNS AND HAVE THEM ADDRESSED PROPERLY? >> WELL, IT’S PROCEDURAL. BELIEVE ME, THE FLIGHT CREW, WHEN THEY SEE PRESSURIZATION PROBLEMS IN THAT TYPE OF AIRCRAFT OR ANY TYPE OF

AIRCRAFT, THE FIRST THING THEY’RE GOING TO DO IS RUN THEIR CHECKLIST AND THEN IFHAT DOESN’T RESOLVE THE PROBLEM, NOTIFY THE MECHANICS AND HAVE IT INSPECTED PRIOR TO FLIGHT. WHAT SURPRISES ME HERE IS THAT THIS INCIDENT OCCURRED SEVERAL TIMES INCLUDING DEPRESSURIZATION PROBLEMS JUST THE DAY PRIOR TO

THE ACCIDENT. I’M SURPRISED THAT ALASKA AIRLINES DID NOT GROUND THEIR MAX 9 FLEET AND CONDUCT A THOROUGH INSPECTION OF ALL OF THE AIRCRAFT TO SEE IF IT COULD BE REPLICATED. WHAT THEY DID DO, I THINK, WAS VERY LIMITED IN NATURE. THEY PROHIBITED ALASKA AIRLINE

MAX 9s FROM OVERWATER FLIGHT. A THINK IT WAS SUFFICIENT GIVEN WHAT HAPPENED ON THIS PLANE SEVERAL TIMES. >> WHAT DO YOU THINK NEEDS TO BE COMMUNICATED FROM HERE ON OUT? A LOT OF PEOPLE STILL WANT TO FLY, THEY WANT TO FEEL SAFE, PERHAPS FEELING UNNERVED ABOUT

WHAT THEY’RE SEEING IN THE NEWS. WHAT SHOULD PEOPLE REMEMBER AS THEY SEE THESE STORIES FLY BY? >> THE FAA GROUNDED ALL MAX 9s. THE NTSB IS CURRENTLY PERFORMING INVESTIGATIONS BOTH FORENSIC AND PHYSICAL INSPECTIONS OF THE AIRCRAFT, ALL OF THE SYSTEMS INCLUDING THE FLIGHT DATA

RECORDER, WHICH RECORDS ALL OF THE CONTROL ACTIONS THAT BOTH PILOTS CONDUCTED FOLLOWING THE INCIDENT AND PRIOR TO THE INCIDENT. REGRETTABLY, THE VOICE DATA RECORDER WAS OVERWRITTEN AND SO ALL COMMUNICATIONS BETWEEN THE PILOTS HAS BEEN LOST. FORTUNATELY IT’S PROCEDURE FOR AIR TRAFFIC CONTROL TO PRESERVE

THE RECORDINGS OF THE COMMUNICATION WITH THE PILOT PRIOR TO, DURING AND AFTER THE EMERGENCY. SO, AT LEAST THE NTSB AND FAA HAS ACCESS TO THAT. >> WE APPRECIATE YOU TAKING THE TIME TO JOIN US. A VERY IMPORTANT STORY HERE. WE KNOW LOT OF PEOPLE ARE WATCHING.

ANTHONY ROMAN, FOUNDER OF AC ROMAN & ASSOCIATES, THANK YOU FOR JOINING US. >> MY PLEASURE. >>> THE STOCK MARKET HAD A ROCKY START TO 2024 SNAPPING A NINE-WEEK WINNING STREAK AS THE DOW AND S&P 500 LOGGED THEIR WORST STARTS SINCE 2016. JARED BLIKRE WAS TRACKING THOSE MOVES.

HOW BAD WAS IT? >> LET’S BACK UP A SECOND. YOU SAID SOMETHING IMPORTANT. WE’RE COMING OFF A NINE-WEEK WINNING STREAK THAT JUST SNAPPED LAST WEEK. IT’S NORMAL TO EXPECT SOME CONSOLIDATION HERE AFTER A BLISTERING RALLY. WE’RE SEEING THE S&P 500 UP TODAY, BUT MORE IMPORTANTLY, TO

ANSWER YOUR QUESTION, THE YEAR TO DATE SO FAR IS NEGATIVE. THIS IS THE FIRST FIVE DAYS SINCE JANUARY 1st. THE S&P 500 IS DN 1%. THIS IS IMPORTANT BECAUSE JANUARY IS A BELLWETHER MONTHS. WHAT HAPPENS IN JANUARY CAN PREDICT WITH PRETTY GOOD ACCURACY WHAT HAPPENS THE REST

OF THE YEAR. LET ME SHOW YOU HOW THIS BREAKS DOWN. ALL OF THIS COMES VIA STOCK TRADERS ALMANAC DOWN B JEFF HIRSH AND HIS LATE FATHER YALE HIRSCH GOING BACK TO THE 1970s. IT WAS IN THE EARLY 1970s THAT THE SANTA CLAUS RALLY WAS DISCOVERED.

IT IS THE LAST FIVE TRADING DAYS OF THE YEAR PLUS THE FIRST TWO TRADING DAYS OF THE YEA TT EQUAL THE SANTA CLAUS RALLY. SECONDLY, I WAS JUST TALKING ABOUT THE FIRST FIVE DAYS, THIS IS JANUARY 2nd TO JANUARY 8th THIS YEAR. SO ENDING TODAY.

FINALLY WE HAVE THE JANUARY BAROMETER. THAT’S SIMPLY THE TRADING JAARY.S FOR THE ENTIRE MONTH OF IF ALL THREE OF THESE ARE NEGATIVE, IT ACTUALLY PREDICTS WITH 80% CERTAINTY THAT THE YEAR WILL END IN THE RED. THAT’S SOMETHING WE WANT TO PAY ATTENTION TO.

IF IT COMES IN MIXED, THERE’S A LT OF WAYS TO SLICE AND DICE THIS, WE CAN MAKE SOME OTHER PRICTIS AUT THAT. I WILL BE BRINGING THESE ON A DAY-TO-DAY BASIS. SUFFICE TO SAY, WE’RE IN THE RED FOR THE YEAR. THAT PORTENDS POTENTIALLY RED

FOR THE REST OF THE YEAR. I WANT TO SHOW WHAT’S HAPPENED IN THE SECTOR ACTION. UTILITIES IS IN THE LE. THAT’S UP 1.8%. THAT’S DEFENSIVE. HEALTH CARE, NUMBER TWO. THAT’S DEFENSIVE. FINANCIALS, NOT DEFENSIVE, THAT’S ACTUALLY GOOD TO SEE. IT’S MORE VALUE THAN CYCLICAL. STAPLES IN THE GREEN.

BOTTOM LINE, WE’RE ALREADY STARTING OUT THE YEAR VERY DEFENSIVELY, WHICH IS A MARKED REVERSAL FROM LAST YEAR. >> INDEED. QUITE THE TURNAROUND. APPRECIATE YOU BREAKING THAT DOWN FOR US. >>> COULD VOLATILITY BE CREEPING BACK INTO THE MARKET? THE VOLATILITY INDEX WAS AT THE

LOWEST LEVEL SINCE THE PANDEMIC TO END 2023, BUT A WK INTO THE NEW YEAR AND THE VIX IS UP NEARLY 5%. HOW WORRIED SHOULD INVESTORS BE? CAN WE EXPECT MORE VOLATILITY FROM HERE? LET’S BRING IN BRAD McMILLAN CHIEF INVESTMENT OFFICER. THANK YOU FOR JOINING US.

AS WE’RE LOOKING AT THIS VOLATILITYO SRT T YEAR, WHAT ARE YOU MAKING OF IT, SEEING ESPECIALLY HOW STRONG THE DEFENSIVE SECTORS ARE TO KICK OFF THE YEAR? >> I THINK THERE’S A LOT OF FEAR OUT THERE. WHEN YOU LOOK AT WHAT’S GOING

ON, THE MARKET IS TRYING TO PROCESS SEVERAL DIFFERENT THINGS. FIRST OF ALL, THERE’S GROWTH. ARE WE GOING TO HAVE A RECESSION? DOESN’T LOOK LIKE IT. YOU LOOK AT THE JOBS REPORTS, THEY’RE COMING IN STRONG. WE DON’T HAVE RECESSIONS WHEN PEOPLE ARE WORKING. IS INFLATION GOING DOWN TO 2%?

DOESN’T LOOK LIKE IT. THERE WAS AN EXPECTATIONT T END OF LAST YEAR THAT THE FED WAS GOING TO CUT RATES MAYBE SIX, SEVEN TIMES. THEN THE FED SAID THREE. AS WE GOT THE DATA, PEOPLE ARE THINKING MAYBE WE ARE NOT GOING

TO GET THOSE CUTS AND WE SHOULD BE CAUTIOUS AND PULL BACK. I THINK THAT’S WHAT WE’RE SEEING. >> HOW DO THE MISMATCHES FIT INTO THIS. YOU HAVE THE FED SAYING WE’RE NOT READY TO CUT RATES JUST YET. THE MARKETS CHARGED AHEAD. YOU HAVE CONSUMERS NOT FEELING

GOOD ABOUT SPENDING, BUT STILL SPENDING ROBUSTLY, THOUGH STARTING TO PULL BACKSLIGHTLY. IF YOU’RE AN INVESTOR HOW DO YOU EXPLAIN THE MISMATCHES AND WHERE ARE THE OPPORTUNITIES TO BE HAD? >> FIRST OF ALL, WE’RE LOOKING AT SOMETHING WE’VE SEEN SEVERAL TIMES DURING THIS CYCLE.

THE MARKETS SAYING THE FED IS GOING TO CUT RATES. THEED SAYS NO WE WON’T. THE MARKET TALKS ITSELF INTO BELIEVING IT, THE FED SAYS NO, AND WE HAVE A SELLOFF. THE MARKET TALKED ITSELF AT THE D OLASTEAR INTO SAYING WE’LL GET THE RATE CUTS, AND THE

FED IS SAYING NOT QUITE AT THIS TIME. SO THERE’S OPPORTUNITIES IN MIXED INCOME. YOU CAN GET PAID FOR THAT. THERE’S OPPORTUNITIES WHEN THE MARKETS SELL OFF. YOU CAN BUY INTO FIXED INCOME WITH THE EXPTATI THA RATES WILL GO DOWN AGAIN. THERE’S A LOT OF OPPORTUNITIES

IN FIXED INCOME. IN TERMS OF THE MARKET, WE’RE SEEING PEOPLE BETTING ON A DEFENSIVE POSITION. I THINK THAT’S WHERE YOU WANT TO BE, BOTH UTILITIES AND CONSUMER STAPLES ARE GOOD PLACES TO BE TO HEDGE A SLOWING BUT GROWING ECONOMY. >> INTERESTINGLY, YOU NOTE IT’S

NOT WHEN THE FED CUTS THAT IS THE RIGHT QUESTION BUT WHY THE FED CUTS. DIG DEEPER INTO THAT FOR US. >> THE THING IS, THIS GOES BACK TO YOUR LAST QUESTION, WHICH IS SIMPLY WHY DOES THE MARKET EXPECT THE FED TOUT RATES?

THE MARKET EXPECTS RATES TO GO BACK TO WHERE THEY WERE. WHY WOULD THEY? RATES HAVE NEVER BEEN IN THAT RANGE EXCEPT WHEN THE FED HAS DECIDED TO SIMULATE. WHEN WE LOOK AT THE SITUATION NOW, THE FED HAS TWO NDATES, INFLATION AND EMPLOYMENT. EMPLOYMENT IS FINE.

THEY CAN FOCUS ON INFLATION. INFLATION IS STILL TOO HIGH. THEY’RE NOT GOING TO CUT UNTIL WE GET BACK TO 2%. WHY WOULD THEY? THEY HAVE NO REASON TO RIGHT NOW. IN FACT, THEY HAVE REASON TO KEEP IT HIGHER FOR LONGER. THAT’S WHERE WE ARE.

>> KEEPING IN MIND WE’LL BE KICKING OFF EARNINGS SEASON AS WELL THEN, HOW MUCH OF THAT DO YOU THINK WE’LL SEE SHOWING UP IN SOME OF THESE EARNINGS CALLS? >> I THINK THE INTERESTING THING IS WE’VE SEEN EARNINGS CONSISTENTLY BEAT EXPECTATIONS. THERE’S A LOT OFALK OUT THERE

IN THE ANALYST COMMUNITY, WE’RE GOING TO HAVE A RECESSION. WE’RE NOT GOING TO HAVE A RECESSION, BUT AT THE SAME TIME COMPANIES ARE COMING OUT THERE DELIBERATELY AND REASONABLY SAYING THERE’S A LOT OF THINGS THAT COULD GO WRONG. THEY CAN SUCCESSFULLY LOWBALL THE EARNINGS EXPECTATIONS.

WE’VE SEEN THE EXPECTATIONS COME DOWN, BUT THEY’RE STILL REASONABLY HEALTHY. I THINK EARNINGS WILL CONTINUE TO BEAT THOSE EXPECTATIONS. I THINK THAT’S WHAT WE’LL SEE. >> AS WE TAKE A BROAD LK AT THE VOLATILITY, WHAT SORT OF SWINGS ARE WE EXPECTING HERE? ARE WE EXPECTING NARROW

VOLATILITY THROUGHOUT THE YEAR UNTIL WE GET A DEFINITIVE DECISION FROM THE FED OR SHOULD WE EXPECT TO SEE CHANGES? >> THA QUESTION. I THINK WHEN WE’RE WATCHING THIS, WHAT WE NEED TO TAKE A LOOK AT IS VALUATIONS BECAUSE AS WE SEE INTEREST RATES FLUCTUATE,

VALUATIONS CAN BOUNCE AROUND, BUT THERE’S A FLOOR OF ABOUT 10% SAYING WE’LL GET THERE, BUT WE’LL HAVE SUPPORT THERE. THAT’S PROBABLY THE LOWER LIMIT IF WE GET MORE DOWNSIDE. THAT WILL BE UPSET OVER TIME BY EARNINGS GROWTH THIS YEAR. I THINK WE’LL SEE SHORT-TERM

VOLATILITY, BUT LIMITED VOLATILITY, AND THEN RENEWED GROWTH TOWARDS THE SECOND HALF OF THE YEAR. >> AT LEAST FOR NOW A BIT OF A LUMPY RIDE FOR THE FIRST HALF OF THE YEAR. THANK YOU SO MUCH. >>> ALL RIGHT. BITCOIN BULLS ARE ON TENTERHOOKS

AS THE S.E.C. IS EXPECTED TO DECIDE ON A SPOT COIN ETF THIS WEEK. WE’LL DISCUSS WITH AN ANALYST ON THE OTHER SIDE OF THIS BREAK. >>> IT’S A BIG WEEK FOR BITCOIN BULLS. ANY DAY NOW THE SECURITIES AND EXCHANGE COMMISSION WILL DECIDE ON WHETHER 14 DIFFERENT MONEY

MANAGERS ARE ALLOWED TO LAUNCH THEIR OWN SPOT BITCOIN EXCHANGE FUNS IN THE U.S. OPTIMISM FOR A BITCOIN ETF FUELED THE CURRENCY HIGHER. OUR NEXT GUEST BELIEVES THIS COULD BE A HUGE CATALYST FOR THE COME. SAM CALLAHAN IS JOINING US THIS MORNING.

AN EXCITING WEEK ON DECK HERE. TALK ABOUT WHY YOU’RE SO OPTIMISTIC ABOUT WHERE BITCOIN’S PRICE WILL GO FROM HERE GIVEN THAT OTHER SPOT BITCOIN ETF APPROVALS IN OTHER COUNTRIES HAVE NOT SEEN AS MUCH OF A SURGE. >> THANKS FOR HAVING ME. APPRECIATE IT.

IT’S AN EXCITING TIME IN BITCOIN, THE REASON WHY THE INDUSTRY IS SO EXCITED ABOUT A SPOT BITCOIN ETF, IT WILL GIVE ACCESS TO MILLIONS OF INVESTORS WHO FIND IT HAR TO GET EXPOSURE TO BITCOIN. IT WILL BE AS EASY AS ANY OTHER STOCK AND BOND TO PURCHASE.

SPECIFICALLY WHO THIS HELPS THE MOST IS LARGE INSTITUTIONS WHO MANAGE TRILLIONS OF DOLLARS OF WEALTH. RIGHT NOW IT’S NOT THAT THEY DON’T WANT TO GET EXPOSURE TO BITCOIN, THEY CAN’T BECAUSE OF REGULATORY REQUIREMENTS THAT RESTRICT THEM FROM BUYING SPOT BITCOIN.

BUT A BITCOIN ETF CHANGES THAT, BECAUSE IT’S A SECURITY LIKE ANY OTHER STOCK OR BOND SO IT FIT INTO THEIR REGULATORY FRAMEWORKS. NOW WE COULD SEE LARGE INSTITUTIONS INVESTING TENS OF BILLIONS OF DOLLARS INTO THESE SPOT BITCOIN ETFs, WHICH WOULD DRIVE DEMAND FOR THE UNDERLYING

BITCOIN. WHEN YOU COUPLE THAT WITH BITCOIN SUPPLY FIXED AT 21 LLIO IT’S NOT DIFFICULT TO SEE WHY THE INDUSTRY IS EXCITED ABOUT THE POTENTIAL MOVING FORWARD. >> SOME PEOPLE ARE WONDERING, WE DIDN’T SEE SPOT BITCOIN ETF AND THE PRICE SKYROCKET IN OTHER

COUNTRIES THAT HAVE ADOPTED IT. BUT AS YOU LOOK AT THE NAMES THAT AMENDED THEIR S-1 FORMS, BLACKROCK, WISDOM TREE, FIDELITY AMONG SOME, WHAT DOES THAT TELL US ABOUT THESE LAST-MINUTES AND THE PREPAREDNESS HERE FOR BIG INVESTMENT BANKS? >> THESE ARE LARGE PLAYERS. THESE ARE THE LARGEST FINANCIAL

ASSET MANAGERS IN THE WORLD. BLACKROCK, FIDELITY, THEY’RE CROSSING THE Ts AND DOTTING THEIR Is AND GETTING EVERYTHING IN ORDER WITH THE S.E.C. TO MAKE SURE EVERYTHING IS IN ORDER FOR THEM TO LAUNCH THESE SPOT BITCOIN ETFs. WHEN YOU COMPARE THEM TO OTHER

ETFs AROUND THE WORLD LIKE AT THE TORONTO STOCK EXCHANGE, THAT WAS LAUNCHED AT THE TOP OF THE BULL MARKET AND THEN YOU SAW A DECLINE IN THE PRICE. IN TERMS OF THE CYCLE, WE ARE COMING OUT OF THE BEAR MARKET WE 2023. WE HAVE MORE REGULATORY CLARITY

IN TERMS OF THE BROADER CRYPTO MARKETS AND IT’S A CONSTRUCTIVE TIME FOR BITCOIN WHEN YOU LOOK AT OTHER DEVELOPMENTS SUCH AS THE CHANGES THAT WILL ALLOW CORPORATIONS TO MORE EASILY BUY BITCOIN AS A TREASURY RESVE ASSET. WHEN YOU LOOK AT THE BROADER

MACRO PICTURE OF THE FED EXPECTED TO CUT RATES, YOU CAN SEE WHY THERE’S GOING TO IT BE A LOT OF DEMAND FOR BITCOIN. JUST THE EDUCATION LEVELS COMPARED TO 2021 AND 2023 TO TODAY, IT’S VERY DIFFERENT. THE INSTITUTIONS NOW BETR UNDERSTAND THE NEW TECHNOLOGY

AND THE VALUE PROPOSITION OF BITCOIN. THAT’S WHY I THINK YOU’LL SEE MORE INFLOWS THAN MAYBE WHAT WE SAW IN THE OLDER ETFs THAT LAUNCHED ABROAD. >> WE DEFINITELY SEE MORE EXPERTISE COMING TO THE TABLE FROM INSTITUONAL INVESTORS IS THAT THE SAME FOR YOUR REGULAR

RETAIL INVESTOR HERE? WHAT SHOULD THEY BE AWARE OF AS THEY’RE GETTING CAUGHT UP IN THE HYPE WONDERING IF THIS IS GOING TO BE THE BIG CATALYST OF WHERE BITCOIN WILL GO FROM HERE. >> I THINK WHAT RETAIL INVESTORS NEED TO UNDERSTAND IS THAT, YOU KNOW, BITCOIN MIGHT BE VOLATILE,

BUT IT IS THE BEST PERFORMING ASSET 7 OF THE LAST 10 YEARS AND 10 OF THE LAST 13 YEARS. IT’S IMPORTANT TO VIEW BITCOIN AS A LONG-TERM SAVINGS, AND AS A WAY TO PROTECT THEIR WEALTH FROM THE BASEMENT AS WELL AS TO HEDGE THEIR PORTFOO.

BITCOIN MOVES IN A WAY THAT IS UNCORRELATED TO OTHER STOCKS AND BONDS. A LOT OF THESE INSTITUTIONAL INVESTORS ARE NOW — YOU’RE HEARING RECOMMENDATIONS OF A 1% ALLOCATION, A 2% ALLOCATION, OR A 5% ALLOCATION INTO BITCOIN AS A WAY TO DIVERSIFY RISK OF A

PORTFOLIO AND IMPROVE THE PERFORMANCE OF AN OVERALL PORTFOLIO. I THINK IT’S IMPORTANT FOR INVESTORS TO NOT JUST BUY BITCOIN, BUT TO LEARN ABOUT WHAT THEY’RE BUYING. WHAT THEY’RE BUYING IS A SCARCE DIGITAL STORE VALUE THAT ALLOWS THEM TO PROTECT THEIR WEALTH OVE

WELL AS PROVIDE UNCORRELATED RETURNS THAT HELP REDUCE THE RISK OF AN OVERALL PORTFOLIO. >> AS WE LOOK AT BITCOIN CURRENTLY SITTING AT ABOUT 45,000 HERE, WAS DOES THAT ROAD FOR BITCOIN LOOK LIKE FOR THE REST OF THE YEAR? HOW HIGH DO YOU EXPECT IT TO GO

BETWEEN WHAT WE’RE SEEING WITH SPOT BITCOIN ETF POTENTIAL APPROVALS AND THE BITCOIN HARVESTING THAT IS SUPPOSED TO >> YEAH.CE IN APRIL?- THERE’S A LOT OF POTENTIAL CATALYSTS FOR BITCOIN’S PRICE. YOU MENTIONED ON THE DEMAND SIDE WE HAVE NEW ON-RAMPS LIKE THE SPOT BITCOIN ETF, THAT WILL MAKE

IT MORE ACCESSIBLE THAN EVER BEFORE FOR RETAIL INVESTORS AND INSTITUTIONS TO BUY BITCOIN. ON THE SUPPLY SIDE, YOU HAVE THE EVENT WHERE EVERY FOUR YEARS THE AMOUNT OF BITCOIN ISSUED GETS CUT IN HALF. IT BASICALLY MAKES THE AVAILABLE BITCOIN MORE SCARCE. YOU HAVE TWO DYNAMICS. INCREASED DEMAND AND IT’S

GETTING SCARCE AT THE SAME TIME. THAT IS REALLY CONSTRUCTIVE FOR THE PRICE MOVING FORWARD. IF YOU LOOK AT THE CYCLES WHERE THERE’S BEEN A HAVING, BITCOIN’S PRICE TENDS TO RUN AFTER THESE HALVING EVENTS, WHEN YOU HAVE THAT IN CONCERT WITH THESE DEMAND FACTORS, YOU CAN SEE WHY

IT PROJECTS FORWARD. THE YEARS AFTER THESE HALVING EVENTS, AND YOU COMPARE THAT WITH THE INSTITUTIONAL ADOPTION, BITCOIN COULD REACH NEW HEIGHTS INTO THE SIX DIGIT FIGURES IN 2024 AND BEYOND. >> I HAVE TO ASK YOU, OBVIOUSLY WHEN IT COM TO STOCK MARKETS

OVERALL, PEOPLE THINK OF THE ORACLE OF OMAHA, WARREN BUFFETT, WHO WOULD BE THAT FOR BITCOIN? MICHAEL SAYLOR IS BUYING SOME, WHAT IS THE MOVE FOR BIG-NAMED INVESTORS AND HOW THEY’RE APPROACHING THIS? >> I DO HAVE TO APPLAUD MICHAEL SAYLOR. I THINK WHAT HE’S DOING IS BRILLIANT.

HE’S LOOKING AT HIS EQUITY, HE’S SAYING IT’S OVERVALUED, HE’S ISSUING MORE AND TURNING AROUND AND BUYING A SCARCE DIGITAL STORE VALUE WITH IT AND PUTNG IT IN AS A TREASURY RESERVE ASSET. I THINK IT’S A BRILLIANT STRATEGY. I THINK WHAT THESE LARGE HIGH

NET WORTH INDIVIDUALS OR INSTITUTIONS HAVE TO CONSIDER IS WHAT I MENTIONED BEFORE, THAT A LITTLE BIT OF BITCOIN GOES A LONG WAY IN TERMS OF IMPROVING THE PERFORMANCE OF YOUR OVERALL PORTFOLIO. YOU HAVE TO CONSIDER HOW TO HEDGE AGAINST CERTAIN RISKS LIKE COUNTERPARTY RISKS.

WHEN YOU LOOK AT THE BANK FAILURES FROM THE SPRING, YOU MIGHT WANT TO OWN A LITTLE BIT OF WEALTH THAT YOU OWN YOURSELF, THAT YOU CAN TAKE OWNERSHIP WITH. YOU DON’T HAVE TO HDT WITH A TRUSTED THIRD PARTY, THAT ALSO PROTECTS YOURSELF IN A MORE

STRUCTURALLY HIGH INFLATIONARY ENVIRONMENT. IN AN INFLATIONARY ENVIRONMENT YOU WANT TO OWN HARD, SCARCE ASSETS. THAT’S WHY YOU’RE SEEING FINANCIAL ADVISERS AND OTHER INSTUTIOL IESTORS LIKE PENSION FUNDS ALLOCATE TOWARDS ALTERNATIVE ASSETS THAT ARE HARD AND SCARCE TO PROTECT THEIR WEALTH AGAINST INFLATION.

IF WE’RE ENTERING A PERIOD OF STRUCTURALLY HIGHER INFLATION, IT’S HARD, SCARCE ASSETS YOU WANT TO OWN AND THERE’S NOTHING RE SCAE THAN BITCOIN. A SMALL AMOUNT GOES A LONG WAY AND YOU WANT TO OWN HARD, SCARCE ASSETS. THAT’S WHY BITCOIN IS ATTRACTIVE TO ALL INVESTORS.

>> CERTAINLY WE’LL BE TRACKING ITS PERFORMANCE. EXCITED TO SEE WHERE IT GOES FROM HERE. SAM CALLAHAN, THANK YOU FOR YOUR TIME. >> THANK YOU. >>> APPLE’S VISION PRO AUGMENTED REALITY HEADSET WILL BE AVAILABLE IN THE U.S. STARTING FEBRUARY 2nd FOR MORE THAN

TRIPLE THE PRICE OF META’S MOST EXPENSIVE HEADSET. WILL THIS GIVE T TECH GIANT THE COMEBACK IT NEEDS? JOINING US IS DAN HOWLEY. I KNOW WE’VE BEEN WAITING FOR THIS ONE. WHAT ARE YOUR THOUGHTS? THCHB >> THIS IS A BIG ANNOUNCEMENT COMING ON GROUNDHOG’S DAY. ITILL

THE MARKET FEBRUARY 2nd. PREORDERS START JANUARY 19th AT 8:00 A.M. EASTERN, 5:00 A.M. PACIFIC TIME FOR PEOPLE WHO HAVE $3,500 TO GO OUT AND SPEND RIGHT AWAY. JUST A FEW OTHER KIND OF POINTS TO MENTION. THE BASE STORAGE FOR THIS IS 256 GIG GIGABYTES.

YOU’LL HAVE ENOUGH ON THERE FOR PHOTOS, THINGS ALONG THOSE LINES. THERE’S GOING TO BE A PAIR OF READERS IN THERE. SO READER LENSES. THEY’LL BE $99 EXTRA IF YOU NEED THOSE. IF YOU NEED PRESCRIPTION OPTICS, THOSE ARE COMING FROM ZEISS, THOSE WILL BE $149.

THAT’S IN ADDITION TO THE $3,500 YOU WOULD SPEND ON THE HEADSET ITSELF. YOU WOULD GET THESE PRESCRIPTION LENSES, GO INTO A APPLE STORE AND THEY WOULD SET YOU UP. I PREVIOUSLY TRIED THESE BACK IN JUNE. YOU USE THE FACETIME CAMERA ON YOUR iPHONE TO LOOK AT YOUR

EYES, TAKE MEASUREMENTS OF YOUR FACE. THAT’S HOW YOU FIGURE OUT THE KIND OF LIGHT BLOCK THAT YOU WILL NEED THAT GOES AROUND YOUR EYES AND ENSURE YOU’RE SEALED OFF FROM THE REST OF THE WORLD. THERE’S A LOT THAT GOES INTO THIS.

IT’S NOT JUST WALKING IN AND PICKING UP AN iPHONE, OR EVEN TRYING OUT A PAIR OF AIRPODS TO SEE IF YOU LIKE THEM IN STORE OR NOT — SOMETHING YOU CAN DO, BY THE WAY. THIS WILL BE A DELICATE SETUP PROCESS FOR APPLE.

THE FACT THEY’RE OERING THEM ONLINE AND IN STORE AT THE SAME TIME IS INTERESTING. FOR APPLE OVERALL, THIS IS THEIR FIRST MAJOR PRODUCT CATEGORY THEY’RE GETTING INTO SINCE THE APPLE WATCH. THIS IS A LONG-TIME COMING. IT’S STILL AN UNPROVEN MARKET. THE SMARTPHONE MARKET GLOBALLY

SELLS BILLIONS OF DEVICES A YEAR. THE HEADSET MARKET SELLS MILLIONS. A HUGE DIFFERENCE IN THE AMOUNT OF DEMAND. WE HAVE TO SEE IF APPLE CAN RAMP THOSE NUMBERS UP. $3,500, THAT’S A LOT TO ASK. >> . WE’RE SEEING AT LEAST THEY’RE THINKING OF THOSE OF US WHO HAVE

EYE ISSUES AND NEED TO WEAR GLASSES OR CONTACT LENSES, THAT PRICE TAG IS HEFTY, BUT IT LOOKS COOL. THE COOL FACTOR IS TOUGH. APPRECIATE YOU ALWAYS GIVING US THE LATE. “YAHOO FINANCE” REPORTER, DAN HOWLEY, THANK YOU VERY MUCH. >>> WILL GAMERS SOON BE GLAMOUGLAMOUR I

CLAMORING TO NETFLIX? THAT’S NEXT. >>> IT’S GAME ON FOR NETFLIX. THE STREAMING PLATFORM’S EXECUTIVES REPORTEDLY IN TALKS TO POSSIBLY INTRODUCE ADS AND MICRORANSACTIONS IN GAMES, THAT’S ACCORDING TO THE “WALL STREET JOURNAL.” OUR NEXT GUEST SAYS THIS IS A GOOD WAY FOR THE STREAMING GIANT

TO DIVERSIFY ITS REVENUE STREAM, THERE’S A LONG WAY TO GO FROM MAKING PROFIT. BRIAN NALBY IS HERE TO BREAK IT DOWN WITH US. GOOD TOAVE YOU ON THE SHOW. FOR A LOT OF US WHO HAVE NETFLIX, GAMING IS NOT EVEN SOMETHING THAT WE’VE THOUGHT WAS PART OF OUR SUBSCRIPTION.

TODAY I WAS FINDING OUT THAT IT IS. WHAT DOES THIS MOVE MEAN FOR NETFLIX AND THE SORT OF VIEWERSHIP THEY COULD BE BRINGING HERE? >> YOU CERTAINLY SEE THE SIZE OF E GAMING MARKET GROWING EXPONENTIALLY. CURRENTLY IT’S AROUND $200 BILLION, EXPECTED TO TRIPLE IN

THE NEXT TEN YEARS. WHEN YOU CONSIDER THE CONTENT CREATION THAT NETFLIX HAS INVESTED IN, IT MAKES SENSE TO TRY TO TNSLA SOM OF THAT CGI AND AI-FUELED CONTENT INTO GAMING. IT’S A HUGE MARKET, ESPECIALLY OVERSEAS WITH ASIA BEING THE BIGGEST MARKET AVAILABLE.

IT MAKES SENSE THEY WOULD WANT TO PLAY IN THAT POOL, IF YOU WILL, AND CAPTURE SOME OF THAT REVENUE THAT MIGHT BE AVAILABLE. THEY’RE ALREADY DOING SOM OF THE WORK BEHIND THE SCENES IN TERMS OF CONTENT CREATION. NOW IT SEEMS A QUESTION OF HOW

WELL THEY CAN COMPETE IN A VERY HIGHLY COMPETITIVE MARKETPLACE WHEN IT COMES TO A LOT OF THE GAMES THAT ARE ALREADY AVAILABLE OUT THERE. THEY HAVE GREAT GROWTH IN TERMS OF ADOPTION AND NEW USERS ON NETFLIX. CAN EY TRANSITION THEM GAMING MODEL?

THAT’S WHERE WE HAVE TO WAIT AND SEE WHAT ACTUALLY HAPPENS. >> IT’S INTERESTING, EVEN WHEN YOU LOOK AT THE NAMES OF THE GAMES, SOME WELL-KNOWN FRANCHISES, GRAND THEFT AUTO, BUT SOME OF THEM BUILD ON NETFLIXHOWS LE “MONEY HEIST.” TO IT’S TAPPING INTO TWO DIFFERENT AUDIENCES HERE.

HOW MUCH OF A COMPETITIVE EDGE WHEN IT COMES TO GAMING CAN NETFLIX HAVE FOR NOW AND WHERE WILL IT GO FROM HERE? >> OBVIOUSLY THEY’RE TRYING TO DO THE BEST TO CAPITALIZE ON PROPERTIES THEY ALREADY HAVE. THE PROBLEM IS YOU ALREADY HAVE SOME WELL-ESTABLISHED GAMES OUT

THERE LIKE FORTNITE AND M MINECRAFT. I APPRECIATE THEY’RE CO-BRANDING SOME OF THE CONTENT THEY’RE STREAMING FROM A VIDEO PERSPECTIVE, TRYING TO GET INTO THAT GAMING SEGMENT. AGAIN, IT’S JUST THE ADOPTION RATE THAT WE’RE WORRIED ABOUT, IF YOU WILL IN TERMS OF MONETIZING THE ACTUAL PRODUCT.

ONCE THEY DO, WE CERTAINLY SEE A CLEAR PATH FORWARD WHERE YOU’RE ABLE TO CAPTURE MORE MONEY OVER TIME IN THE GAMING SEGMENT RATHER THAN JUST BUYING A PARTICULAR SHOW OR MOVIE AND YOU ONLY GET THAT ONE-TIME REVENUE. MING PROVIDES AN ONGOING STREAM OF REVENUE FOR IN-APP

PURCHASES AND ALL THE THINGS YOU CAN DO ALONG THOSE LINES IN TERMS OF GROWING THE BUSINESS AND GROWING REVENUE. WE CERTAINLY UNDERSTAND THE MODEL AND THEY’RE CERTAINLY SERIOUS ABOUT IT. THEY MADE BIG INVESTMENTS INCLUDING PARTNERSHIPS WITH ALL E MILE PRODUCERS OUT THERE. AT&T, VERIZON, T-MOBILE, THEY’RE

SIGNING AGREEMENTS WITH THEM AS WELL AS DISH NETWORK AND COMCAST. MOBILE ACCOUNTS WERE ROUGHLY HALF THE GAMING REVENUE RIGHT NOW. IT’S AROUND 46%. THEY’RE MAKING THE RIGHT INVESTMENTS IN THE RIGHT PLACES TO TRY TO CAPTURE IT. IT ALL COMES DOWN TO THAT

ADOPTION RATE AND THE MIGRATION OF VIEWERS INTO GAMERS. IT’S LESS LIKELY TO BE HAPPENING HERE DOMESTICALLY, JUST BECAUSE OF THE PURE BRAND POWER THAT YOU HAVE OF EXISTING GAMES, AGAIN OF THOSE PROPERTIES ARE SO ,LL POPULAR HERE. BUT THEY ALSO HAVE DONE VERY GOOD — NETFLIX IN PARTICULAR —

AT GROWING FOREIGN LANGUAGE ABROAD. WE WOULD EXPECT THEM TO DO THAT IN THIS NEW INVESTMENT. >> AS WE LOO AT THE SHIFTING DYNAMICS IN TERMS OF HOW NETFLIX IS INVESTING, IT USED TO BE BIG NAMES, ALL ABOUT THE CONTENT, JUST GROWING SUBSCRIBERS. WE’RE NOW SEEING REPORTS OF

NETFLIX CUTTING 100 SHOWS AND A MAJOR PROGRAMMING SHIF HOW MUCH OF A PART WILL GAMING AND LIVE SPORT PLAY IN NETFLIX’S FUTURE GROWTH? >> LIKE I SAID, YOU’RE LOOKING AT 10% ANNUALIZED GROWTH IN THE GAMING MARKET ITSELF. IT GROWS TO A MARKET OF AROUND

600 BILLION GLOBALLY BY 20. IF THEY JUST CAPTURE 5% OF THAT AS A SHARE, THAT’S AN EXTRA 30 BILLION IN REVENUE TO A COMPANY THAT GENERATES 35 BILLION TO 40 MILLION ON AN ANNUALIZED BASIS. WE UNDERSTAND WHY THEY’RE WANTING TO PLAY IN THAT PARTICULAR MARKET. WELSO UNDER

SYNERGIES HERE THAT THEY CAN EASILY REPURPOSE INTO THE GAMING NETWORK AND THIS BECOMES $1 INVESTED GOING TWO DIFFERENT WAYS TO MAKE MONEY BACK-END. SEE THE PRESSURE ON THE HIGHER COST OF CREATING CONTENT AND THEY’RE LOOKING TO MAKE BETTER USE OF USING THOSE DOLLARS INVESTED.

THE KNOCK ON THE BALANCE SHEET WHEN IT COMES TO NETFLIX, THEY HAVE QUITE A BIT OF LONG-TERM DEBT OUT THERE AND THE NEED TO SERVICE THAT BY DIVERSIFYING REVENUE STREAMS. IT SEEMS LIKE THIS IS WHERE THAT BET IS HEADED TOWARDS IN TERMS OF OFFSETTING THOSE LONG-TERM

CSTS BY GENERATING MORE REVENUE FROM THE SAME DOLLAR SPENT. >> WHAT DO YOU SEE AS THE GAMING WITH THE NEW AD TIER NTO HERE? >> IT’S A HIGHLY COMPETITIVE MARKETPLACE. IF I CAN HAVE MORE FUN WITH LESS INTERRUPTION ON A DIFFERENT PLATFORM, THAT’S WHERE USERS

WILL TEND TO GO. THE QUESTION IS, WHAT DOES THE INTERRUPTION LOOK LIKE? DOES IT TURN USERS OFF OR AWAY FROM THAT PARTICULAR PLATFORM AND THE GAMES THEY LIKE TO PLAY? YOU’RE ONLY LOOKING FOR ENTERTAINMENT VALUE AS FAR AS GAMING. IF IT BECOMES MORE OF A

DISTRACTION OR A DISRUPTION IN THE EXPERIENCE I’M TRYING TO ENJOY, OBVIOUSLY THE ADOPTION RATE WILL REFLECTAT. WE UNDERSTAND THE MONETIZATION PART OF IT. BUT IT ALSO HAS TO BE AN ENJOYABLE, FUN PLATFORM. THAT’S WHAT GAMING IS ALL ABOUT AND THAT’S WHAT USERS ARE LOOKING FOR.

>> AS YOU’RE LOOKING AT THIS FROM AN INVESTMENT PERSPECTIVE THEN, IS NETFLIX — DOES IT HAVE PORE UPSIDE VSUS SOME OTHERS THAT ARE PURE PLAY IN GAMING? >> I THINK THERE IS MORE UPSIDE HERE. THEY’RE ALREADY SPENDING MONEY ON CONTENT CREATION. WE THINK THEY HAVE BEEN

SUCCESSFUL, AGAIN, OFFSHORE, IF YOU WILL, NOT HERE DOMESTICALLY IN THE U.S., BUT IN INTERNATIONAL MARKETS. THEY HAVE DONE QUITE WELL AT ORGANIC CONTENT CREATION. THERE’S A BIGGER GROWTH MODEL FOR OFFSHORE MARKETS IN GAMING ANY WAY. ASIA IS GOING TO ACCOUNT FOR

ROUGHLY HALF OF THAT MARKET ALONE. IF THEY CAN TRANSITION THOSE VIEWERS OF THOSE SHOWS INTO A GAMING PLATFORM THAT MELS THAT, THEN THERE ACTUALLY SHOULD BE QUITE A SUCCESSFUL MODEL GOING FORWARD. FOR INVESTORS THEY’LL HAVE TO LOOK BEYOND WHAT HAPPENS IN THE

U.S. MARKETS AND U.S. GAMING TO GAUGE HOW SUCCESSFUL AND PROFITABLE THIS IS GOING TO BE LONG-TERM FOR NETFLIX. >> I’LL DEFINITELY CHECK IT OUT. I’LLTART PLAYING AROUND WITH IT. IT’S ALREADY INCLUDED IN THE SUBSCRIPTION. I’LL PLAY AROUND AND SEE. I ALWAYS HAVE NIECES AND NEPHEWS

LOOKING FOR GAMES AND NETFLIX IS RIGHT THERE. THANK YOU VERY MUCH FOR JOINING US. >>F COURSE, THE GOLDEN GLOBES TOOK PLACE LAST NIGHT WITH “OPPENHEIMER” RAKING IN FIVE MAJOR WINS INCLUDING BEST PICTURE, DRAMA AND BEST DIRECTOR. IT’S NOT ALL GLITZ AND GLAM IN HOLLYWOOD.

MOVIES ARE STILL REBOUNDING FROM THE WRITERS AND SAG-AFTRA STRIKES THAT TOOK PLACE LAST YEAR AND STRUGGLING BOX OFFICE LEVELS THAT HAVE NOT REBOUNDED SINCE PRE-PANDEMIC. LET’S BRING IN OUR GUEST TO DISCUSS MORE. I WANT TO TALK ABOUT THE GOLDEN GLOBES. THIS WAS MEANT TO BE THE

REVAMPED COMEBACK KID WITH CBS, THIS FOR-PROFIT MODEL. WHEN YOU LOOK AT WHAT’S TRENDING THIS MORNING WHEN IT COMES TO THE GOLDEN GLOBES, WHAT DO YOU THINK ARE THE BIGGEST TAKEAWAYS? >> OVERALL IT WAS NOT THAT GREAT OF THE SHOW. THE HOST, JOE COY, WHO IS SOMEONE I LIKE.

HE’S A REALLY FUNNY COMEDIAN. NOT THE RIGHT GUY FOR THE JOB. DIDN’T DO WELL THERE. I DON’T SEE HIM GETTING INVITED BACK TO HOST ANYMORE. BUT OVERALL, YOU KNOW, “OPPENHEIMER,” AS YOU MENTIONED, WAS THE BIG WINNER OF THE NIGHT. BEST PICTURE DRAMA AND BEST

DIRECTOR, THOSE ARE THE TWO OF THBIGGTWARDS OF THE NIGHT. IT IS THE FRONT-RUNNER NOW FOR THE OSCARS, WHICH WILL HAPPEN IN MARCH. SOME OTHER WINNERS THERE, ROBERT DOWNEY JR., HE WON FOR “OPPENHEIMER” AS WELL. KILLIAN MURPHY. THAT DOMINATED THE NIGHT. YOU HAD SOME SMALLER WINS FOR SOME SMALLER FILMS.

SOME WERE SURPRISES. A LITTLE MIXTURE OF THE BIG BUDGET AND THE SMALLER BUDGET. THE GOLDEN GLOBES VOTERS AND THE OSCAR VOTERS ARE TWO SEPARATE GROUP OF HUMAN BEINGS. IT DOESN’T NECESSARILY TELL US WHAT WILL HAPPEN AT THE OSCARS BUT IT TELLS US WHERE THE TREND

LINES ARE AND WHERE THE MOMENTUM IS. >> WHEN YOU THINK OF WHAT YOU SAW ON SOCIAL MEDIA’S REACTION TO IT, AND EVEN LOOKING AT VIEWERSHIP LEVELS FOR THE GOLDEN GLOBES, DOES IT STILL SEEM LIKE A GOODNVESENT GIVEN THAT THERE’S SO MUCH COMPETITION FOR

VIEWERS EYES AND SITTING DOWN FOR MULTIPLE HOURS FOR AN AWARDS SHOW DOESN’T SEEM TO BE DOING IT FOR PEOPLE. >> I THINK IN THE LAST TEN YEARS WE’VE HAD AN OVERSATURATION OF AWARD SHOWS. THE GOLDEN GLOBES ARE ARGUABLY THE SECOND BIGGEST SHOW IN THE MOVIE AND TV BUSINESS.

THE OSCARS, THE EMMYS, THE MUST-SEE EVENTS. THE GOLDEN GLOBES BRINGS ALL THOSE STARS TOGETHER. YOU SAW THE BIGGEST STARS IN HOLLYWOOD WERE ALTOGETHER, HARRON FD, TIMOTHY SHALAMAIN, AND AFTER THE STRIKES, THEY WERE HAPPY TO BE THERE. WE WERE HAPPY TO WATCH THEM.

I THINK THEY’LL TAKE A LOT OF NOTES FOR NEXT YEAR. THE FORMAT DID CHANGE FROM NBC FOR DECADES OVER TO CBS. YOU HAVE A NEW TEAM PUTTING THE BROADCAST TOGETHER. A LOT OF SNAFUS, BUT THEY HAVE THE OPPORTUNITY TO MAKE IT BETTER NEXT YEAR.

IT IS THE FIRST BIG ONE OF THE CALENDAR YEAR, THAT MAKES IT EXCITING NOT ONLY FOR THE AUDIENCEBUTOR TV AND THE ADVERTISERS. >> LAST YEAR WAS ALL ABOUT BARBENHEIMER. CAN WE REPEAT THAT SAME SORT OF MAGIC THIS YEAR? WHAT DOES THAT MEAN IN THE SPACE

FOR M&A AS WELL AS WE TRY TO GET MORE VALUE OUT OF THESE MOVIE FRANCHISES AND STOCKS AS INVESTMENTS? >> THE STUDIOS HAVE BEEN RELYING ON FRANCHISES EVERY YEAR, SEQUELS. “BARBIE” WAS NOT A SEQUEL BUT IT WAS A BRAND. SUPER MARIO BROS. ANOTHER BRAND, NOT A SEQUEL.

“BARBIE” WAS THE NUMBER ONE MOVIE OF THE YEAR. $1.44 BILLION AROUND THE WORLD. ONE YEAR AGO NOW, NOBODY COULD PREDICT IT WOULD MAKE THAT KIND OF MONEY. RIGHT NOW THE CALENDAR LOOKS LIGHT. BECAUSE OF THE STRIKES, A LOT OF PROJECTS WERE DELAYED. JUST THE NATURE OF E BUSINESS,

NEW MOVIES WILL BE ADDED LATER AND THERE ARE SURPRISES ALSO AROUND THE CORNER EVERY YEAR. WE CANNOT TRULY PREDICT WHAT THE YEAR-TO-DATE BOX OFFICE WILL BE COME DECEMBER BECAUSE OF ALL THE SURPRISES AND SO ON. HOWEVER, THE STUDIOS ARE LOOKING TO GO THROUGH A YEAR OF CHANGES.

THIS IS A WORLD WHERE ALL THESE STUDIOS MAY NOT BE ABLE TO SURVIVE IN THE LONG-TERM BUT OF THE CHANGES GOING ON, NOT JUST ON THE STUDIO SIDE BUT WITH THE AUDIENCES. AUDIENCE AND CONSUMER BEHAVIOR CHANGED A LOT. THERE’S SOCIAL MEDIA,TIKTOK, INSTAGRAM.

PEOPLE ARE SPENDING TRILLIONS OF MINUTES ON THESE FREE PLATFORMS, THAT’S TRILLIONS OF MINUTES THEY’RE NOT SPENDING WATCHING MOVIES AND TV SHOWS. THAT BIGS THE QUESTION, WILL WE SEE SOME M&A ACTIVITY THIS YEAR? IHINK WE WILL. BETWEEN STREAMING, UNTIL VISION AND FILM, A LOT OF THEM CANNOT

SURVIVE THE WAY THEY ARE. THEY’RE KICKING THE TIRES. WE’LL SEE WHERE MERGERS GO. YOU KNOW, THINK ABOUT YOUR, HOW MANY STREAMING SERVICES DO YOU HAVE? STREAMING SERVICES THAT WE PAY FOR? I DON’T THINK SO. YOU MIGHT SEE CONSOLIDATION ON THE STREAMING SIDE AS WELL.

>> WHAT WILL WE SEE IN TERMS OF COST? A LOT OF PEOPLE FOLLOWED NETFLIX’S NEED WHEN IT CAME TO MORE AD TIERS AND CRACKING DOWN THOSE GET FILTERED THROUGH THE STREAMING INDUSTRY AND WHAT ARE SOME OTHER CATALYSTS YOU’RE LOOKING FOR THIS YEAR?

>> THE TREND IS FOR MORE AD-SUPPORTED PLATFORMS OUT THERE. THE STREAMING SERVICES ARE ALL DOING IT. IRONICALLY STREAMING WAS THE PLACE YOU WENT TO TO NOT SEE ADS. TWO MAJOR TENT POLES TOER STREAMING, EXCLUSIVE CONTENT YOU CAN’T GET ANYWHERE ELSE, NUMBER TWO, NO ADVERTISING.

SO PEOPLE SIGNED UP FOR NETFLIX AND OTHERS AFTER THAT. NOW IT’S CHANGING. EVERY MAJOR STREAMER HAS OR WILL NOW HAVE AN AD-SUPPORTED TIER, BUT YOU’RE SITTING THROUGH AN AD EXPERIENCE. ON THE EXCLUSIVITY SIDE, YOU HAVE STREAMING SERVICES LIKE MAX, LICENSING THEIR CONTENT

WHICH USED TO BE EXCLUSIVE TO THEMUT T NETIX AND OTHERS. THAT’S NEW REVENUE FOR THEM. THIS IS A WORLD WHERE THEY’RE PAYING MORE FOR ACTORS, DIRECTORS, WRITERS, SO ON, THEY HAVE TO MAKE THAT MONEY SOMEWHERE. BETWEEN ADVERTISING AND LICENSING SOME OF THEIR

EXCLUSIVE CONTENT OUT TO OTHER PLATFOS, TY’RE TRYING TO FIND A WAY TO SORT OF, YOU KNOW, MAKE THE MONEY BACK TO MAY FOR EVERYTHING WITHOUT HAVING THE CONSUMER PAY TOO MUCH. LAST YEAR WE SAW A LOT OF STREAMING SERVICES JACK UP THEIR PRICES AND SURPRISE-SURPRISE,

PEOPLE PUSHED BACK AND SAID, NOPE, I’M NOT GOING TO PAY THIS MUCH MORE FHE SAME STREAMING SERVICE. THAT’S THE PUSH AND PULL WE’RE SEEING RIGHT NOW BETWEEN CONSUMERS AND BUSINESSES TRYING TO BE PROFITABLE. >> CONSUMERS TRYING TO PULL BACK ON THE PURSE SPRINGS.

APPRECIATE YOU JOINING ME THIS MORNING. THANK YOU SO MUCH. >> THANK YOU. >>> ANJALEE KHEMLANI CAN BRINGING US ALL THINGS HEALTH CAREROM SAN FRANCISCO. WE’LL HAVE INFORMATION FROM THE CEO OF ELI LILLY NEXT. >>> “YAHOO FINANCE’S” ANJALEE KHEMLANI HAS BEEN COVERING ALL

THINGS HEALTH CARE FROM THE MORGAN HEALTH CARE CONFERENCE IN SAN FRANCISCO. EARLIER THIS MORNING SHE SPOKE WITH DAVE RICKS ABOUT THE COMPANY’S RECENT SUCCESS. TAKE A LISTEN. >> WE’VE BEEN IN THE SPACE A LONG TIME. NOW WE’RE ADDING OTHER HORMONES TOGETHER. MOUNJARO AND ZEPBOUND ARE TWO

MODES OF ACTION. AND IN THE PIPELINE WE HAVE ANOTHER ONE COMING WITH THREE MODES OF ACTION. ACTION SO WE’RE LEARNING HOW TO EXPLOIT THIS BIOLOGY TO REALLY AFFECT A WHOLE NUMBER OF METABOLIC DISEASES. LAST YEAR WAS ABOUT THE LAUNCH OF ZEPBOUND BOUND THAT HAPPENED

IN THE FALL. GOING WELL SO FAR. MOUNJARO HAD A GREAT YEAR AS WELL IN DIABETES. TRULICITY CONTINUES TO DO WELL. THIS YEAR, I THINK, WILL BE ABOUT SOME OF THE NEW DATA RELEASES. WE STUDY THESE DRUGS, NOT JUST TO DEMONSTRATE THAT YOU LOSE WEIGHT, ALMOST EVERYBODY

LOSES WEIGHT, BUT WHAT HAPPENS TO YOUR BROADER HEALTH. WE’RE STUDYING A POPULATION WITH CONGESTIVE HEART FAILURE, A SPECIFIC SUBTYPE, PARTIAL INJECTION FRACTION, AND THAT’S REALLY DRIVEN BY OBESITY, SO WE’RE ANOUS GETHOSE RESULTS SOMETIME IN THE SECOND HALF. ALSO A CONDITION CALLED SLEEP

APNEA, WHICH IS A COMMON CONDITION THAT ALMOST TEN MILLION AMERICANS HAVE THAT WE THINK WE CAN REDUCE THOSE SIGNS AND SYMPTOMS OF SLEEP APNEA BY LOSING WEIGHT. SO, THIS WILL BE NOW THE NEXT STEP TO TRANSLATE THOSE HEALTH BENEFITS WITH GREAT WEIGHT LOSS. >> YEAH. ABSOLUTELY.

CERTAINLY SOMETHING WE’RE ALL LOOKING AT, HOW MUCH MORE CAN YOU GET, WHAT OTHER DISEASES CAN GET BENEFITTED BY THE WORK THAT YOU HAVE BEEN DOING? I ALSO KNOW THAT YOU LAUNCHED YOU’RE TRYING TO GET TO THE CONSUMER AS WE SAW HOW MUCH OF A

RUN YOU HAD ON JUST MOUNJARO ALONE LAST YEAR. THESE DRUGS ARE IN HIGH DEMAND. YOU’RE RUNNING OUT AT SOME POINTS IN THE YEAR. SO, LAUNCHING LILLY DIRECT, GETTING TO THE CONSUMER, DIRECTLY TO THEM WITH ZEPBOUND FIRST AND THEN A COUPLE OTHER DIABETES DRUGS, WHAT IS THE

GOAL? ARE YOU TRYING TO CUT OUT THE PHARMACIES AND THE PVMs? >> WE’RE NOT TRYING TO CUT OUT ANYONE. WE’RE HAPPY TO WORK WITH ALL THOSE PLAYERS. WE WANT TO OPTIMIZE THE PATIENT EXPERIENCE. WE LISTEN CAREFULLY TO OUR PAENTS THEY’RE FRUSTRATED WITH THE

STATE OF U.S. HEALTH CARE AND HOW IT WORKS FOR THEM. WE’RE TRYING, WITH LILLY DIRECT, TRYING TO DO THREE THINGS. ONE IS THE DIRECT PART, GET SUPPLIES OR PRODUCTS FROM A MANUFACTURER DIRECTLY. THAT’S AN EXPERIENCE WE ALL HAVE IN MANY PARTS OF OUR LIFE, AND SOME PEOPLE PREFER IT.

I WOULD SAY, IN PARTICULAR, PEOPLE WITH OBESITY WHO, WHEN THEY GO OUT INTO THE WORLD, THEY’RE OFTEN SHAMED FOR THE WAY THEY LOOK. MANY PEOPLE DON’T CONSIDER OBESITY A HEALTH CONDITION. THEY GET BLOW BACK AT THE PHARMACY CNTERET CERA,O THEY, IN PARTICULAR, LIKE THE

DISCRETION OF GETTING THAT PRODUCT DIRECTLY. SECONDLY, TELEHEALTH, WHICH A LOT OF AMERICANS HAD EXPERIENCE WITH IN COVID, AND SOME DON’T LIKE AND SOME DO. HERE, WE’RE SERVING UP A PARTNER IN DIFFERENT DISEASE STATES, ACTUALLY, THREE DIFFERENT RTNERS, WHO ARE GOOD AT

TELEHEALTH, AND PEOPLE HAVE A PLACE TO LAND TO GET THAT. AND WHY DO WE DO THAT? BECAUSE WE’VE WORKED WITH THEM IN VARIOUS WAYS TO MAKE SURE THE QUALITY OF THE PROGRAMS ARE VERY HIGH. AND SO, LILLY CAN BE A TRUSTED SOURCE TO GET THAT TELEHEALTH PROVIDED. >> ABSOLUTELY.

>> AND THEN, YOU KNOW, I THINK THE OTHER ING WOULSAY IS, IN PARTICULAR WITH OBESITY, AGAIN, PATIENTS REPORT KIND OF DOCTOR SHOPPING TO FIND SOMEONE WHO WILL WRITE THEM WHAT THEY KNOW IS A SOLUTION FOR THEIR HEALTH PROBLEM, AND SO HERE, IT’S JUST MORE CONVENIENT.

IT’S NOT JUST, THOUGH, TELEHEALTH. WE HAVE A DOCTOR FINDER TOOL ON OUR SITE. SO YOU CAN PUT IN YOUR ZIP CODE AND FIND OUT WHO IS A CERTIFIED OBESITY SPECIALIST IN YOUR AREA. AND ACCESS TO HEALTH CARE AND THE KNOWLEDGE GAP IS VAST IN THE U.S.

>> THANK YOU TO ANJALEE KHEMLANI FOR THAT INTERVIEW. >>> LET’S TAKE A QUICK CHECK AT THE MARKETS. THE DOW OFF, DOWN ABOUT 82 POINTS. STILL BEING WEIGHED DOWN BY THAT BOEING NEWS WEIGHING ON THE D AF GROUNDED BY THE FAA. S&P 500 STILL IN THE GREEN BY A

HALF PERCENT. THE NASDAQ ALSO UP THIS MORNING. >>> I’M RACHELLE AKUFFO. THAT DOES IT FOR ME. STAY WITH US ON “YAHOO FINANCE.”