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OpenAI on Thursday told its investors and banking partners that it expects Elon Musk to make "deliberately outlandish" claims ahead of an April trial. View More

Sam Altman, chief executive officer of OpenAI Inc., during a media tour of the Stargate AI data center in Abilene, Texas, US, on Tuesday, Sept. 23, 2025. Kyle Grillot | Bloomberg | Getty Images OpenAI sent a letter Thursday to investors and banking partners warning that it expects Elon Musk to make "deliberately outlandish, attention-grabbing claims" as his lawsuit against the AI lab heads to trial in April. The trial will mark a public escalation of Musk's years-long feud with OpenAI, and the company's letter serves as an attempt to preempt and alleviate investors' concerns. OpenAI has raised billions of dollars from venture capitalists, and its valuation has swelled to $500 billion.Musk co-founded OpenAI as a nonprofit research company in 2015 alongside several other researchers and executives, including the startup's CEO Sam Altman. He filed a lawsuit against OpenAI in 2024 alleging he was "assiduously manipulated" and "deceived" after the AI company explored converting to a for-profit entity and established an "opaque web of for-profit OpenAI affiliates," including its multibillion-dollar partnership with Microsoft. Musk departed OpenAI's board in 2018, but he has argued that he is owed "the value of all intellectual property developed" from his contributions, potentially amounting to billions of dollars, according to a complaint. "We have strong defenses and feel confident about our chances of winning the case," OpenAI said in the letter, which was viewed by CNBC. "Regardless, based on the record so far, we believe this case is worth no more than the $38M that Elon donated - though that is not a guarantee." OpenAI declined to comment on the letter.Earlier this month, U.S. District Judge Yvonne Gonzalez Rogers ruled that the case will proceed to trial. The lawsuit was filed in August 2024 in the U.S. District Court in the Northern District of California.OpenAI said it expects Musk will make comments about the AI company that are not "grounded in reality" and are "typical of the harassment tactics he's previously deployed," according to the letter. "Elon's lawsuit remains baseless and without merit, and our team is focused on ensuring the jury sees these claims for what they are," OpenAI said.WATCH: OpenAI Investor Letter: Weekly and daily active user figures ‘continue to produce all-time highs’ watch nowVIDEO1:2401:24OpenAI Investor Letter: Weekly and daily active user figures 'continue to produce all-time highs'Fast Money

By 2027, most of IT services work will be done by human plus AI teams: Indian industry body report View More

This report is from this week's CNBC's "Inside India" newsletter which brings you timely, insightful news and market commentary on the emerging powerhouse. Subscribe here.Millions of techies and engineers who have built India's multi-billion-dollar IT services industry have a new teammate: artificial intelligence. And embracing this partnership is no longer optional — resistance could mean the end of one's career.On Monday, during its earnings call, India's largest IT company, Tata Consultancy Services, which wants to achieve "AI fluency at scale," told analysts it now has 217,000 employees that have "higher order AI skills," up from 180,000 barely a month ago.TCS is training all its employees on working alongside and with AI. The world's second largest IT services company told analysts last month that it was particularly keen on hiring "AI natives" — mostly young people adept at using a wide range of modern AI tools in their jobs."These people [trainees] really know how to treat AI as a teammate," Aarthi Subramanian, executive director and chief operating officer at TCS had told analysts during the annual meet on Dec. 17. White-collar workers have a meeting with artificial intelligence.Guoya | Digitalvision Vectors | Getty Images Turns out, it is not the only major Indian company doubling down on teaming up humans and AI.More than a third of the country's IT companies are using artificial intelligence for 40% of their core operations, according to a report by India's National Association of Software and Services Companies, or Nasscom, and job search platform Indeed.On an average, companies are seeing 25%-35% improvement across important key performance indicators as a direct impact of using AI, the report said.Almost all (97%) expect work to be done by teams made up of humans and AI by 2027, said the report, based on findings of a survey of 120 human resource heads at IT companies. The paring could be between a person and either an AI tool or an AI agent. AI will take the lead role in most of these teams, barring a few positions that require human judgment, empathy, and hands-on presence, Sashi Kumar, managing director of Indeed India and Ketaki Karnik, head of research at Nasscom, told CNBC. Skills challenge With AI technology evolving rapidly, the key question is: Can employees upskill as quickly as the job demands? "AI has become one of the most important skillsets for freshers entering Indian IT services companies," said Sachin Alug, chief executive at global IT staffing firm NLB Services.Nearly a quarter of all fresher roles now require AI or data-related skills, up from just 5%–10% three years ago, said Alug, adding that AI skilling in India needs urgent attention because the talent gap is widening fast as demand for AI-ready workers grows.The Indian government's policy think tank, Niti Aayog, in a report in October said, "Supply for AI talent is now 50% of the current demand in India and is expected to further lag in the next few years."Niti Aayog said that in a business-as-usual scenario, "the headcount in the tech services sector could go down from 7.5 to 8 million in 2023 to 6 million by 2031," but taking corrective action and pushing for AI upskilling could increase the number of jobs in the IT sector to 10 million.Data shared by TCS on Monday showed that its employee count stood at 582,163 at the end of December, down from 607,979 as of March-end last year. In July 2025, the company had announced it would shed jobs, mostly middle and senior management, citing "skill mismatch" owing to the rising importance of AI. Macquarie Capital's IT Services analyst, Ravi Menon, says that firms such as TCS are still hiring and the layoffs are mostly due to a skills mismatch. He expects net IT sector hiring in the current financial year to be just 1%-1.5% of the existing workforce, but estimates it to rise to 6%-7% in fiscal year ending March 2027 and 7%-9% in the following fiscal year as demand picks up, with AI adoption across businesses becoming a key driver.But not everyone agrees with that assessment."The number of people required to work in IT services in the world of AI will be orders of magnitude lower than where we are currently," Saurabh Mukherjea, founder and chief investment officer at Marcellus Investment Managers, told CNBC's "Inside India" earlier this month. IT services, which have been the biggest job creator in India in the past few years, have been shedding jobs "quite rapidly," said Mukherjea. While the future of the IT workforce appears uncertain, its non-human partners are set to thrive as companies increasingly adopt new technologies. The best recourse for humans of IT might just be to upskill and team up with AI. Top TV picks on CNBC watch nowVIDEO4:0704:07India’s consumer industry sees limited impact albeit tariffs on the rupeeInside India Goldman Sachs' Arnab Mitra said that India is starting to see an earning cycle 'revival' in 2026, encouraging rotation into the consumer sector. watch nowVIDEO2:2902:29500% tariff unlikely: Analyst says to expect US-India trade deal by JuneInside India Sumedha Dasgupta, senior analyst at Economist Intelligence Unit, said the U.S.-India trade deal will come through within the first half of the year. watch nowVIDEO2:3602:36Lack of jobs a growing political challenge for India: analystInside India UTI International's chief executive said that the crucial task for India's government is to find a way to create jobs amid layoffs due to the growing use of AI in the tech sector. Need to knowIndia's consumer inflation rate rose to 1.33% in December. Affirming its upward trajectory, inflation climbed for a second straight month after touching record low of 0.25% in October. The increase in inflation was mostly due to rise in price of vegetables, meat and fish, egg, spices and pulses and products.Infosys raises forecast. One of India's biggest IT services company, Infosys, has reportedly raised its revenue growth outlook for financial year 2026 to between 3% and 3.5% in constant currency terms from 2% to 3% estimated earlier. Quote of the week Foreign investors, from what we understand, are on the edge, waiting for earnings revival in India, and we think in the next two quarters, by the April earnings season, we should see earnings in mid teens, and that should be a trigger for foreign investors to come back in. — Praveen Jagwani, CEO, UTI InternationalIn the marketsIndia markets were closed on Thursday.The Nifty 50 index is down 1.77% so far this year, having gained over 10% in 2025. The benchmark 10-year India government bond yield last at 6.649%.JPMorgan sees India's long-term investment story as firmly intact, underpinned by an expanding middle-income population, rising consumer demand, and a relatively stable government with consistent policy priorities supporting both urban and rural communities. "I think the issue right now is how high valuations are, and [whether] we are poised for correction if earnings do not really come through," said the bank's global market strategist, Raisah Rasid. Stock Chart IconStock chart icon Coming upJan.19-23: World Economic Forum, DavosJan. 20: Shadowfax Technologies IPO opens Each weekday, CNBC's "Inside India" news show gives you news and market commentary on the emerging powerhouse businesses, and the people behind its rise. Livestream the show on YouTube and catch highlights here. SHOWTIMES:U.S.: Sunday-Thursday, 23:00-0000 ETAsia: Monday-Friday, 11:00-12:00 SIN/HK, 08:30-09:30 India Europe: Monday-Friday, 0500-06:00 CET

US President Donald Trump on Thursday announced the formation of a Gaza ‘board of peace,’ a key phase two element of a US-backed plan to end the war in the Palestinian territory. View More

CNBC's Jim Cramer reviewed Thursday's market action. View More

In this article2330-TWFollow your favorite stocksCREATE FREE ACCOUNT CNBC's Jim Cramer on Thursday suggested a strong quarter from Taiwan Semiconductor renewed Wall Street's faith in artificial intelligence stocks, including industry leader Nvidia. "Taiwan Semi made mincemeat of the skeptics who've been doubting AI's staying power," he said. "They said something that we have only heard from Jensen Huang, CEO of Nvidia — the demand is insatiable and, more important, the profits, they could be humongous for the customers."Taiwan Semiconductor, the world's largest contract chipmaker, beat the estimates and broke a new record, reporting a 35% profit increase. The company has now posted eight consecutive quarters of year-over-year profit growth. Management indicated there is still heavy demand for its products, which are used for advanced AI technology. Wall Street had largely soured on AI as of late, Cramer said. But Taiwan Semiconductor's successful earnings suggest business is also strong for customers, namely Nvidia, he continued. Chip stocks led the market higher on Thursday, with the major indexes finishing in the green. Taiwan Semiconductor hit a new 52-week high and closed up 4.44%, while Nvidia added 2.13%.Cramer also pinpointed other action from Thursday's session he feels is positive, including gains in banks and consumer-oriented stocks like restaurants and retailers. He lauded the rise of housing names, noting that the sector broadly had been hit with downgrades recently. He also mentioned the "monster move" in small cap stocks, saying the Russell 2000 managed to break out."But the turn in Nvidia, which had become an eyesore of this market, is what gives me hope that the bubble talk may have finally run its course," Cramer said. "At least for the moment." watch nowVIDEO11:3911:39This is another chance to buy quality names before their next leg up, says Jim CramerMad Money with Jim Cramer Jim Cramer's Guide to InvestingClick here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest smarter. Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market.Disclaimer The CNBC Investing Club holds shares of Nvidia. Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer's world? Hit him up! Mad Money Twitter - Jim Cramer Twitter - Facebook - InstagramQuestions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

President Donald Trump wants to send payments directly to households for health costs. Experts think the plan may raise costs and the number of uninsured. View More

An Obamacare sign at a Miami insurance agency on Nov. 12, 2025.Joe Raedle | Getty Images The White House on Thursday reiterated its support for sending payments directly to households to cover health-care costs, an idea President Donald Trump has championed for months. However, health policy experts reached by CNBC said they were skeptical of the proposal. "I do think it's a bad idea," said Gerard Anderson, a professor of health policy and management at the Johns Hopkins Bloomberg School of Public Health.The policy was part of a broad outline of a health-care plan that the White House said would lower drug prices and insurance premiums. In a video unveiling the framework, dubbed "The Great Healthcare Plan," Trump called on Congress to swiftly codify it into law. Read more CNBC personal finance coverageTrump pitches direct payments for health care. What policy experts say about itStudents forgo four-year degrees in favor of community college, certificate programsOver 800,000 student loan borrowers in backlog for forgiveness, repayment plansUnderwater car trade-ins are on the rise — and drivers owe a record amountThis IRS deadline is a 'chance to catch up' on your 2025 taxes, expert saysWorkers have $2.75 billion saved in state-run retirement accounts — what to knowMore Americans expect to miss a debt payment: What that does to your credit scoreStudent loan borrowers in default may miss Trump's 'largest tax refund season'IRS could see modest budget cut as Congress proposes funding plansAs enhanced ACA subsidies lapse, millions poised to drop health insuranceBigger tax refunds are coming for 2026 — what it could mean for the economyHere's the inflation breakdown for December 2025 — in one chartMore drivers have $1,000-plus car loan payments. What buyers can expect in 2026What the investigation of Fed chair Powell may mean for your moneyWhat Trump's 1-year, 10% credit card interest rate cap means for your moneyCNBC's Financial Advisor 100: Best financial advisors, top firms ranked Trump has shown enthusiasm for sending direct payments in other contexts during his second term, floating ideas including tariff dividend checks. It's hard to assess the specific impact of direct health-care payments, experts said, since the White House framework lacked key details such as who would be eligible, the amount consumers might receive and how the money could be spent. At a high level, it doesn't appear the proposal would grant the same level of financial assistance for health care that consumers currently receive, which would likely lead many to drop their insurance and cause premiums to rise for remaining enrollees, Anderson said.There would also have to be strong guardrails in place to dictate how people could spend their health-care funds, said Nick Fabrizio, a health policy expert and associate teaching professor at Cornell University's Jeb E. Brooks School of Public Policy."I feel very strongly that if you give people money, they will spend it on things other than health care unless it's like a voucher," Fabrizio said. Trump's overall framework, which calls for policies like greater price transparency in the medical ecosystem, could succeed in lowering health costs, Fabrizio said. Trump framework comes amid ACA subsidy debate Senate Minority Leader Chuck Schumer, D-NY, speaks at a press conference with other members of Senate Democratic leadership following a policy luncheon at the Capitol on Oct. 15, 2025.Anadolu | Getty Images The framework comes as Congress is debating whether to extend enhanced subsidies that lower insurance premiums for millions of Affordable Care Act marketplace enrollees, and it may complicate a bipartisan effort underway to renew them.Those enhanced subsidies, in place since 2021, expired at the end of last year. KFF, a nonpartisan health policy research group, estimated the lapse would cause premiums to soar more than twofold for the average recipient. Without the enhancement, a baseline of subsidies known as premium tax credits is still in place for ACA enrollees. Consumers can opt to receive those premium tax credits in one of two ways: in a lump sum during tax season, or via an immediate reduction in monthly insurance premiums. In the latter scenario, by far the most popular, the federal government sends a consumer's subsidy to their insurer, which then lowers the consumer's upfront premium. watch nowVIDEO4:2204:22Dr. Vin Gupta on how the expiration of enhanced ACA subsidies will affect AmericansMoney Movers Trump's health framework called for an end to "billions in extra taxpayer-funded subsidy payments" and instead supported sending that money "directly to eligible Americans to allow them to buy the health insurance of their choice."It's unclear how such a plan would work, experts said. Trump and some congressional Republicans had previously supported the idea of repealing some or all ACA subsidies and replacing them with contributions to health savings accounts or something similar, wrote Larry Levitt and Cynthia Cox of KFF. A health savings account is a tax-advantaged account geared to medical expenses.A White House official said Thursday that consumers outside the ACA market would also qualify for direct payments. While HSAs can be used to cover certain medical expenses, consumers can't currently use them to pay insurance premiums — and only consumers who are enrolled in a qualifying high-deductible health insurance plan can make contributions to such an account, experts said. "You'd have hurdles getting people through the door" and into an insurance plan if that HSA prohibition against premium payments were to remain, said Matt McGough, an Affordable Care Act policy analyst at KFF. "It's really not going to relieve a lot of the [financial] burden for those people."The devil is really in the details here," he said. Amount is a key missing detail The direct payment amount and the extent to which any remaining premium tax credits would be scaled back are other important, unknown details, experts said.If the amount were not large enough, then younger, healthier people would generally be the ones to drop their coverage — leaving older, sicker enrollees behind, Anderson said. Insurers would raise premiums for the remaining insured to compensate for that risk, since older, sicker enrollees generally require more care, he said. Legislation unveiled in December by Sens. Mike Crapo, R-Idaho, chair of the Senate Finance Committee, and Bill Cassidy, R-La., chair of the Senate Health, Education, Labor and Pensions Committee, would provide an annual HSA contribution of $1,000 for individuals ages 18 to 49 or $1,500 for individuals ages 50 to 64.That sum "really pales in comparison" to what many enrollees, especially those ages 50 to 64, had received from enhanced ACA subsidies, McGough said.For example, the average middle-income 60-year-old earning almost $63,000 a year is no longer eligible for ACA subsidies, and is on the hook for the full, unsubsidized insurance premium in 2026 — about $15,000, according to a KFF analysis. In 2025, this same individual was eligible for an ACA premium subsidy of about $7,300. Premium tax credit amounts vary greatly from person to person, based on age, income and geography.

The U.S. and Taiwan have reached a trade agreement to build chips and chip factories on American soil, the Department of Commerce announced Thursday. View More

watch nowVIDEO16:0216:02Watch CNBC's full interview with U.S. Secretary of Commerce Howard LutnickPower Lunch The U.S. and Taiwan have reached a trade agreement to build chips and chip factories on American soil, the Department of Commerce announced Thursday.As part of the agreement, Taiwanese chip and technology companies will invest at least $250 billion in production capacity in the U.S., and the Taiwanese government will guarantee $250 billion in credit for these companies. In exchange, the U.S. will limit "reciprocal" tariffs on Taiwan to 15%, down from 20%, and commit to zero reciprocal tariffs on generic pharmaceuticals, their ingredients, aircraft components and some natural resources.Taiwan Semiconductor Manufacturing Co. has bought land and could expand in Arizona as part of this deal, Commerce Secretary Howard Lutnick told CNBC's Brian Sullivan in an interview Thursday. "They just bought hundreds of acres adjacent to their property," Lutnick said. "I'll let them go through with their board and give them time.""Regarding TSMC's plans, the market demand for our advanced technology is very strong, we continue to invest in Taiwan and expand overseas, all the investment decisions are based on market conditions and customer demands," a TSMC spokesperson told CNBC. The announcement added that future tariffs under the Section 232 framework will have some exceptions for companies that are building chips in the U.S. Taiwanese companies constructing new U.S. chip fabs — such as TSMC — will be able to import up to 2.5 times the amount of capacity they are building while the factories are under construction, without paying tariffs under the framework. Taiwanese auto parts, lumber and related products will also avoid tariffs over 15% under Section 232, the announcement said. Read more CNBC tech newsMeta's VR layoffs, studio closures underscore Zuckerberg's massive pivot to AIBig Tech is looking to energy talent to fuel its AI ambitionsPalantir is trying to 'destroy' Percepta through legal action, startup's execs say in filingMicrosoft says communities won't see energy price hikes near data centers as utility costs rise When the factories are completed, companies will be able to import 1.5 times their U.S. production capacity, Commerce said.The agreement provides clarity to chip companies and technology firms that have grappled with uncertainty during the past year over the Trump administration's approach to tariffs in the semiconductor industry.It also incentivizes TSMC, the world's leading fab company, to continue to build more factories on U.S. soil, while making it clear that it can continue to manufacture chips for U.S. companies in Taiwan. "As a semiconductor foundry serving customers worldwide, we welcome the prospect of robust trade agreements between the United States and Taiwan," a TSMC representative said in a statement. watch nowVIDEO2:0902:09Taiwan will invest $250B in U.S. chipmaking under new trade dealPower Lunch Lutnick said during the interview that Taiwan-based chip companies that don't build in the U.S are likely to face a 100% tariff. He said that the government's objective was to bring 40% of Taiwan's semiconductor supply chain to the U.S."That's what they get if they don't build in America, the tariff's likely to be 100%," Lutnick said. TSMC has already built fabs in Arizona, investing as much as $40 billion to produce chips for companies like Apple and Nvidia, using previous grants of U.S. government money under the CHIPS Act.The U.S. government has prioritized American production of leading-edge chips as the struggle for access to artificial intelligence semiconductors has become a key geopolitical matter. U.S. officials have also said that there is substantial risk to the U.S. economy if China invades Taiwan and reduces access to TSMC chips. "We're going to bring it all over so we become self-sufficient in the capacity of building semiconductors," Lutnick said.

Concerns about a U.S. strike on Iran had been mounting after Trump vowed to take action against the regime’s crackdown on widespread protests in the country. View More

watch nowVIDEO3:3103:31Not entirely convinced that Trump has decided on regime change in Iran: AnalystAccess Middle East Oil prices fell more than 4% on Thursday, after comments from U.S. President Donald Trump eased market speculation that an American strike on Iran could be imminent. Brent crude oil futures, the global benchmark, lost 4.15%, or $2.76, to close at $63.76 a barrel. Front-month West Texas Intermediate crude lost $2.83, or 4.56%, to settle at $59.19 a barrel.Speaking to reporters on Wednesday, Trump said he had been informed by "very important sources" in Iran that "the killing has stopped.""There's no plans for executions, I've been told that on good authority," he said, adding that the White House would watch how the situation unfolds. The U.S. Treasury Department on Thursday announced sanctions on Iranian officials such as Ali Larijani, secretary of the Supreme Council for National Security. Hundreds of people have reportedly been killed after mass unrest in Iran was met with a violent crackdown by the Islamic Republic's security forces. Trump has repeatedly threatened to intervene if civilians are killed or executed by the state. Stock Chart IconStock chart iconBrent crude price Oil prices jumped on Tuesday after Trump canceled meetings with Iranian officials and promised protesters that "help is on its way," and extended gains on Wednesday amid mounting concerns that a U.S. strike on the country was looming. Those fears were fueled by a report from news agency Reuters that some personnel had been directed to leave the U.S. military's Al Udeid Air Base in Qatar by Wednesday evening. The BBC also reported that some British personnel were being moved out of the base. On Tuesday, the U.S. government issued an advisory to American citizens to leave Iran by land to Armenia or Turkey. "Leave Iran now. Have a plan for departing Iran that does not rely on U.S. government help," the U.S. Virtual Embassy in Iran said. "If you cannot leave, find a secure location within your residence or another safe building. Have a supply of food, water, medications, and other essential items."In a note on Thursday morning, Deutsche Bank's Jim Reid said Trump's comments about the killing in Iran stopping had been taken by markets as "a signal that the U.S. might hold off on a potential military response.""[But] there's clearly lingering caution, not least given the unexpected timing of U.S. strikes on Iran in June 2025," he noted. "Brent crude is still clearly above its lows below $60/bbl last week, but Trump's comments had a clear impact.""Bear in mind as well that Iran is a more significant oil producer than Venezuela, producing 4% of the world's total in 2023, so developments there have the potential for wider spillovers in the oil market," Reid added.

Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading. View More

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Stocks were climbing on Thursday led by semiconductors and AI-related names. Taiwan Semiconductor rallied more than 5% after reporting strong fourth quarter results and forecasting higher captial spending. That strength in TSMC was lifting the chip group: Club name Nvidia and Micron were each up 3%, and portfolio holding Broadcom was up 1.5%. Financials were also getting a boost. Goldman Sachs rose 5% after beating fourth quarter earnings, though revenue came in light due to a one-time impact from the transfer of Apple Card to JPMorgan . Fellow Club name BlackRock surged 6% on its fourth quarter beat, highlighting strong base fee growth. The market entered Thursday in overbought territory, according to the S & P Short Range Oscillator , and we raised cash into strength by trimming our Dover position. Eli Lilly shares dropped 5% on a Reuters report that the Federal Drug Administration extended review deadlines on several drugs, including Lilly's orforglipron — its experimental, once-daily GLP-1 pill to treat type two diabetes and obesity. The GLP-1 market has been driven by injectables, but the obesity pill category is expected to accelerate the category, given patients' preference for pills. FDA approval of orforglipron would likely be a major catalyst for Club stock Eli Lilly , especially after rival Novo Nordisk jumped on becoming the first to secure FDA approval for a GLP-1 weight-loss pill. We continue to view approval for Lilly as a "when, not if," particularly because orforglipron has advantages over Novo's pill that could make it more appealing to patients. The drug has a target approval date of April 10, and a Lilly spokesperson confirmed approval could land in the second quarter, based on current FDA guidance. Lilly's stock was also feeling the weight of broader health care sector volatility as the Trump administration seeks to adjust pricing for drugs and insurance companies. Wall Street is warming up to Costco again. Bernstein called the retailer the "ultimate compounder" for its ability to grow earnings and free cash flow at a steady rate in a note to investors. Analysts also think Costco shares are undervalued, citing consistent earnings per share growth and return on equity over the long term. The firm argues the growth that lies ahead justifies Costco's price-to-earnings multiple of 45 to 50 times. Costco had been an out-of-favor retailer after losing nearly 6% last year on concerns about its elevated valuation, slipping membership renewal rates, and slower shopping trends. It's what made us cut our Costco position in half on Dec. 16, booking a 200% gain on shares purchased in early 2020. But negative sentiment turned positive after Costco delivered stronger-than-expected December sales earlier this month. Jim Cramer has said that Costco is not done going higher after the stock has already gained 10% to start the year. Bernstein also sees further upside from here with the stock still down 1.5% over the past six months. Up next: There are no major earnings reports after the closing bell. Bank earnings continue Friday, with PNC Financial scheduled to report before the open. The economic calendar is also light Friday, with the release of December industrial production data from the Federal Reserve and the January housing index from the National Association of Home Builders. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Students are putting more emphasis on career training and post-college employment, as more opt for a two-year degree or even shorter-term credentials.  View More

watch nowVIDEO2:4802:48Why students are choosing community college, certificates over four-year degreesMarkets and Politics Digital Original Video For years, concerns over rising college costs and student loan debt have been driving some high schoolers away from a four-year degree in favor of shorter, less expensive alternatives. Now it's clear that students are putting more emphasis on career training and post-college employment, as more opt for a two-year degree or even shorter-term credentials.  The overall rate of high school graduates choosing to enroll in community college and short-term credentialing programs is rising, according to a new report from the National Student Clearinghouse Research Center. Enrollments in undergraduate certificate and associate degree programs both grew by about 2% in fall 2025, while enrollment in bachelor's degree programs rose by less than 1%, the report found. Community colleges now enroll 752,000 students in undergraduate certificate programs — a 28% jump from just four years ago. Read more CNBC personal finance coverageTrump pitches direct payments for health care. What policy experts say about itStudents forgo four-year degrees in favor of community college, certificate programsOver 800,000 student loan borrowers in backlog for forgiveness, repayment plansUnderwater car trade-ins are on the rise — and drivers owe a record amountThis IRS deadline is a 'chance to catch up' on your 2025 taxes, expert saysWorkers have $2.75 billion saved in state-run retirement accounts — what to knowMore Americans expect to miss a debt payment: What that does to your credit scoreStudent loan borrowers in default may miss Trump's 'largest tax refund season'IRS could see modest budget cut as Congress proposes funding plansAs enhanced ACA subsidies lapse, millions poised to drop health insuranceBigger tax refunds are coming for 2026 — what it could mean for the economyHere's the inflation breakdown for December 2025 — in one chartMore drivers have $1,000-plus car loan payments. What buyers can expect in 2026What the investigation of Fed chair Powell may mean for your moneyWhat Trump's 1-year, 10% credit card interest rate cap means for your moneyCNBC's Financial Advisor 100: Best financial advisors, top firms ranked Overall, undergraduate enrollment growth was fueled by more students choosing to attend community college, the report found. "Community colleges led this year with a 3% increase, driven by continued rising interest in those shorter job-aligned certificate programs," said Matthew Holsapple, the National Student Clearinghouse Research Center's senior director of research.For one thing, community college is significantly less expensive. At two-year public schools, tuition and fees averaged $4,150 for the 2025-2026 academic year, according to the College Board. Alternatively, at four-year public colleges, in-state tuition and fees averaged $11,950, and those costs at four-year private schools averaged $45,000.To help cover that cost, most students borrow to pay for college, which has led to ballooning student loan balances. That debt load has become more difficult to manage: Around 9 million education loan holders are currently in a default status, according to a recent estimate from advocacy group Protect Borrowers.Among those with student debt, 77% say it is a "huge burden," and 63% say the education they received wasn't worth the impact student loan debt has had on their overall well-being, according to a study from EdAssist by Bright Horizons."Community colleges are accessible, affordable, and accredited, offering traditional transfer programs and relevant workforce training without the burden of excessive debt," DeRionne Pollard, president and CEO of the American Association of Community Colleges, said in an email. 'Safety premium' of a college degree is shrinking Peopleimages | Istock | Getty Images The worst-case scenario is taking on student debt and graduating without a job, college experts say. At the same time, the job market for new grads is shakier than it's been in years. As a boom in artificial intelligence is quickly reshaping the workforce, eliminating some entry-level jobs for college grads entirely, employers are projecting just a 1.6% increase in hiring for the Class of 2026 when compared to the Class of 2025, according to the National Association of Colleges and Employers. Some experts say this is the start of an AI-driven, white-collar recession.A 2025 analysis by Goldman Sachs found that the "safety premium" of a college degree is shrinking. Although college graduates are still less likely to be unemployed than their nondegree counterparts, the advantage is smaller than it's been in decades, the firm found.The benefits of a two-year degree, vocational program or other types of certifications "are amplified in an environment of economic uncertainty — making community colleges not only a smart option but a necessary one for many students," Pollard said.Meanwhile, a shortage of skilled tradespeople is boosting the number of job opportunities and pay in industries like nursing, manufacturing and construction, other research shows. Some in-demand trade jobs have average salaries well over $100,000 a year, according to the job site Indeed.  Workforce Pell Grants create 'new opportunities' Starting in July, there's even more incentive to pursue short-term training programs. Under President Donald Trump's "big beautiful bill," which Congress passed last year, students enrolling in workforce training programs at community colleges may be eligible for Pell Grants, a type of aid awarded solely based on financial need. The grants are worth up to $7,395 for the 2025-26 academic year. Previously, these funds were only available to degree-seeking undergraduate students. The program "will strengthen connections between higher education, states, and employers to enable more students to graduate from high-quality, short-term programs with the skills needed to succeed in our economy," Undersecretary of Education Nicholas Kent said in a statement. The Department of Education has also ramped up efforts to caution students about "the benefits and risks" of borrowing for a college education. For students concerned about the cost of schooling, the new workforce Pell Grant program is "super valuable funding," said Jill Desjean, director of policy analysis at the National Association of Student Financial Aid Administrators."I can imagine that this would open new opportunities for students who just couldn't afford these programs in the past and didn't have other ways to pay for them," Desjean said — particularly if "the field they want to go to doesn't require a two- or four-year degree."Subscribe to CNBC on YouTube.

Trump urged Congress, which is grappling over an extension of key ACA tax credits, to pass "The Great Healthcare Plan" without delay. View More

U.S. President Donald Trump, in front of U.S. Secretary of Health and Human Services Robert F. Kennedy Jr., delivers remarks at the White House, in Washington, D.C., U.S., Sept. 22, 2025. Kevin Lamarque | Reuters President Donald Trump on Thursday rolled out the broad outline of a health-care plan that the White House claims will lower drug prices and insurance premiums.The announcement came as a congressional effort to extend key Affordable Care Act tax credits faces headwinds from Senate Republicans, leaving millions at risk of seeing their health insurance premiums spike.The Trump administration dubbed the initiative "The Great Healthcare Plan," the president said in a video unveiling the policy Thursday morning."I'm calling on Congress to pass this framework into law without delay," Trump said. "Have to do it right now."The plan would codify the deals Trump recently struck with major drugmakers to slash the cost of certain prescription drugs in the U.S. by pegging them to lower prices abroad, as part of his "most-favored-nation" policy.More than a dozen pharmaceutical companies agreed to lower prices on certain products for Medicaid patients in exchange for a three-year exemption from tariffs. As part of those deals, companies also agreed to sell some medicines at a discount on Trump's direct-to-consumer platform, Trump Rx.Trump, in his video announcement, said those lower drug prices will take effect on the platform when it launches this month. He claimed that those prices would plunge by as much as 500%, even though that would mean prices would fall far below $0.The health-care framework would "make more verified safe pharmaceutical drugs available for over-the-counter purchase," according to a White House fact sheet.It would also purportedly send money for health insurance coverage "directly to the American people" instead of giving "big insurance companies billions in extra taxpayer-funded subsidy payments," the fact sheet says. Trump has repeatedly floated similar proposals in recent remarks.The plan would additionally "fund a cost-sharing reduction program," which the administration says would "reduce the most common Obamacare plan premiums by over 10%."Other components of the policy include requiring health insurers to prominently post coverage comparisons "in plain English" on their websites, along with other information about overhead costs and claim denial rates.It would also require providers who accept either Medicare or Medicaid "to publicly and prominently post their pricing and fees to avoid surprise medical bills."The new proposal from the White House comes as senators remain at loggerheads on a deal to extend the now-lapsed ACA, or Obamacare, subsidies. A bipartisan group of senators has been working for weeks on a way forward, but hit a snag recently on language relating to the Hyde Amendment, a statute that bars the use of federal funds for abortion services. White House Press Secretary Karoline Leavitt holds a press briefing at the White House in Washington, D.C., U.S., January 15, 2026.Evelyn Hockstein | Reuters The White House plan notably leaves out an extension of the ACA subsidies, which Democrats are demanding be extended as a part of any health-care deal. The White House had not publicly put forward a proposal until Thursday, but Trump has repeatedly said he wants funds to go directly to patients rather than insurance companies.Some negotiators wondered whether the White House plan would hamper negotiations."We've all known that in order to be able to advance something, we're going to have to have buy-in from the White House," Sen. Lisa Murkowski, R-Alaska, one of the negotiators, told reporters Thursday. "Does this set things back if he signals that he does not support extending [the subsidies]? I mean, that's the basis of our plan here."Sen. Jeanne Shaheen, D-N.H., who is leading talks on the Democratic side, said Thursday that she hadn't yet seen the Trump plan, but signaled optimism about the discussions."Most of the areas have agreement, so what we need to do is get bill text together and then get final sign-off so that we can talk to our colleagues about what we're proposing," Shaheen told reporters. A White House official on Thursday said the plan does not close the door on extending the subsidies, but lays out the president's preferences. "This does not specifically address those bipartisan congressional negotiations that are going on," the White House official said. "It does say that we have a preference that money goes to people, as opposed to insurance companies." Read more CNBC politics coverageRussia watches as ally Iran edges closer to collapse. 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