Market insight and analysis. You're listening to the opening bell of CNBC, Squawk on the Street. Good Thursday morning. Welcome to Squawk on the Street. I'm Carl Cantonia with Jim Kramer at Post 9 of the New York Stock Exchange. David Faber has the morning off. Bulls looking for some relief after two, 1% declines to start the year on the NASDAQ. Yields are elevated again, though, as jobless claims come in at the lowest level since mid-October.

A roadmap begins with the big tech route. Mag 7 stocks in the midst of their longest decline in

more than a month. Apple shares tumbling 6%. Another downgrade today. Plus watching pharma, Walgreen

slashing its dividend, Lilly taking weight loss drugs direct to consumer, and it's all about autos. GM gets an

upgrade. Rivian downgraded, and Ford set to announce its latest sales figures. Let's begin,

though, with stocks trying to bounce back from another tough session. S&P riding a three-day losing streak,

Jim, back-to-back, 1% declines on the NAS only happened a couple times,

1980 and 05. Yeah, we trim these stocks at the beginning of the year, and we did it because it just felt like this was one of the greatest fronts ever. Right into the last, from the, believe it or not, even from when the Fed signaled that they were probably going to be done tidying, this MagS7 still was up 11. You had the S&P

non Fed signal that they were probably going to be done tidying. Mag. 7 still was up 11. You had the S&P non, you know, non-weighted, not overweeting Apple, all 500 equal. That was up a couple percent more. So you can say that that had been doing better. But the group's underperforming. But the main thing that's happened, obviously, is everyone's just picking on Apple, concerned about handset inventories. Some people are thinking it revolves, goes right through the

supply chain, that's Corvo and that's SkyWorks Solutions. And, you know, at a certain point,

you're going to say, well, I heard that already. But it sounds like that harsh can work.

Look, these are rigorous pieces because because as I said the other day

I think Apple would go to 160 without a problem just because uh China and because handsets are

in over supply but Carl Apple was up almost 50% last year and everyone acts like Apple was disappointing

and if all of our stocks were up 50% do you think we'd be sitting here? If everyone, like, why talk about it? Let's just talk about the playoffs. And let's just be unbelievable if everyone's up 50%. Jim's referring to this down great today. Out of Piper, where they do cut Apple to neutral. They go to 205.

They were at 220.

But to your point, they also cut Microchip and Corvo and Skyworks. I mean, it's funny because it's not funny, but Microchip just got the grant. The Grants. Yeah, got the great grant from the Commerce Department. And by the way, that is a terrific grant because it's going to expand what they're doing in Colorado Springs. And it's talked about Oregon. and microchip is the dumb chip, so to speak,

meaning what we really lost in the supply chain, whether it be for defense or for aerospace, were these chips that are called large form factor. They're not the most up-to-date cutting. And that's what we're hostage to. So I thought this was a very good. Commerce Department, once again, finding a way to do the right thing and make people feel that your tax dollars are going a long way. Yeah. We'll wait to see if those grants get finalized because they are in a preliminary status. But I would say that so far what I'm seeing is that they're focused on defense and aerospace. And that's good because talk about critical. I mean, when you pick up the front page, they're not talking about what we're doing. what we're doing, they're talking about what's happening in Iran. And we obviously, if we're going to like try to stop the so-called rebels in the Red Sea, that's dumb chips. That's not high-end chips. Right. And to that point, Micron does get upgraded over at Piper. Interesting, because that really is at cell phone. And we had Sanjay on a few weeks ago. Yeah, and I thought Sanjay tells a very good story. The stock had dropped. I was surprised that the stock's down in 82. Now, that does, I dovetail with something that no one's talking about, which is this Microsoft putting a new button. The new button. Of course, now, Microsoft doesn't do any buttons because the stuff is hardware, and the hardware is that's HP,

which HP did not tell me about it when I spoke to HP last.

But that's Micron, and that's the AI that we've all been waiting for, that AMD has said.

That is the, okay, we press the button, and we get what we want.

We make our launch reservations by talking to our PCs.

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