good morning, everybody, and welcome to "squawk box" right here on cnbc we are live from the nasdaq market sooite in times square. i'm becky quick along with joe kernen andrew is off today. here we go it's wednesday it's hump day. >> it's really kind of thursday, which is the best day. >> because of good friday. i forgot. >> you know how good thursdays are, because it's the anticipation of friday. >> a nice long rollup. >> we have more time until monday. >> markets will be closed for friday we will be off air but this morning on this wednesday/thursday morning, you're going to see that the futures are indicated higher dow is up by 161 points right now. nasdaq is up by 85 s&p futures up by 22

this comes after three straight rows of decline. the s&p down yesterday by about 0.3% the nasdaq was down too. it with us down for a second day in a row, down by 0.4% and the dow was down just slightly yesterday, by about 31 points y u ooher going to see right now, treasury yields look like they're slightly higher this morning. the 10-year is at 424. the 2-year is at just below 4.6% we've got gold prices, bitcoin, and i want to take a look at cocoa too. gold prices right now up slightly, but you're still talking about those new highs. >> 2200. >> 2210. >> it's quite a big move 10 bucks and it's been just, you know, dead for years kind of, and really moving -- >> it's making gains at the same time you're seeing bitcoin 70,000 and f 3 cocoa prices yesterday at

another all-time high. there's talk about the weather conditions and the problem they're having with disease and crops in west africa, leading to a huge, huge decline they're talking about a deficit this year of something like 374,000 tons that compares to last year's deficit, last season's deficit of just about 75,000 a huge increase in supply. >> you probably can't get to solid money this year. >> probably not. well, you can, but it will cost you. >> you like that i don't -- i think solid -- i think -- i thought my parents were cheaping out when i got the -- >> no, i like it it's too hard. you're going to break you teeth on the solid ones. this horrible story when you think about what actually happened did you see the mayday but when you watch the video, the mayday -- the cops must have stopped the traffic seconds

before -- >> that video was sped up. if you look closely -- >> the semis that i see -- >> flying by. >> it was a matter of minutes. >> incredible heroes a, to be able to send out that may day when they had that chaos on the ship, b, for the police officers to be able to stop traffic because if you were watching, there were a lot of cars that went by. >> i was immediately thinking it makes the initial reaction of you guys got to pitch in on cleaning this up to where you're like, wow, you guys actually - you know, you lost -- it might have been contaminated fuel, they're saying to cause the shutdown. >> the engine shutdown they have local pilots who get on board and steer them out. >> i was worried there would be a lot of cars beneath the surface. there's going to be an update on the bridge collapse. you can tell what we're talking about. six people who were working on the bridge unfortunately at the time of the collapse are now presumed dead. the coast guard said the efforts

to recover their bodies will continue today meantime the ntsb is leading the investigation into the events that led up to the crash and said a data recorder on the ship could provide more information industry officials say the vessel did, in fact, suffer a power blackout, which you can sort of see on the blackout. the engine and navigation equipment as well, but the cause of the system failure still unclear. the port of baltimore has closed vessel traffic until further notice it's a key entry port in the u.s. for imported cars, farm equipment. it's america's second largest hub for sporting koelg to be sold abroad. as for rebuilding the bring, governor wes moore described it as a long-term build could. predict exactly how long it will take, but people are talking about supply chain issues and inflation and shortages. there could be -- we'll see.

there could be ripple effects across the entire economy. >> i think particularly when you're looking at automobiles, farm equipment, we're getting into the spring planting season, so you can look at issues from that the good news is a lot of that traffic is being diverted to other ports on the east coast and even though we have a strong economy, it's not so strong that these ports are working at 100%. >> i'm surprised how much coal is still -- we're still exporting a lot of coal. >> there are nations using a lot. >> people need power we're used to a certain lifestyle. if you turn everything off, that's all -- did you see the shot of that solar field big effort solar field i've ever seen a hailstorm, it got destroyed. >> shut down >> the damage is significant i wasn't thinking about that you could have a solar field

covering acres and acres and aggers and acres, and they'll have to start from scratch. >> you need multiple sources >> and hydrocarbons. >> multiple sources. >> you definitely need the hydrocarbons i don't know about the solar. >> you need any and all sources. >> i know. keep drilling. keep drilling. until 2050 can we do it >> yeah. among the other stories we're watching today, shares of gamestop selling off after a big run-up this week earnings for revenue fell short of analysts' expectations. that tracks with softer consumer spending that was reported by gaming companies, take 2 interactive and arc last quarter. gamestop cut an unspecified number of jobs to reduce costs late last year gamestop's board

approved a new investment policy that allows it to invest in equities and other securities. they said they gave the executive chair ryan cohen the ability to manage it. >> i think it was up maybe on this next story. >> right. >> people were revisiting all of those stocks because of reddit. >> reddit shares rose again yesterday, up another 8.8c%. new street research issued a neutral rating after the stock goes to the moon the first earnings report is expected in may. again, since the ipo a week ago, up 91%. and shares of robinhood rising after its first ever credit card.

it's entering the competitive space with a robinhood gold card offering 3% on all categories. it will require a gold membership that runs for $5 a month or $50 annually. we'll speak with ceo savlad tanv americans have a dangerous blood pressure in the lungs, most commonly in the elderly, women, and african americans, and the drug will be sold in the u.s. it will cost $14,000 per vial and will be taken every three weeks. it's the first drug to actually target the root cause of the condition. other available medicines are palative they only help manage the symptoms. >> $14,000 a vial and you take

it every three weeks that's pretty impressive. >> i don't know how long a vial lasts. >> that's true i don't know how long it lasts. >> that's expensive. we're one week away from disney's meeting that's when decisions will be decided. yesterday peltz won the backing of a proxy adviser egan jones which urges shareholders to nominate peltz to the board which will force the company to listen to new ideas. it has a problematic relationship with the state of florida and its on trans into the nation's culture wars. who's playing the eagles >> what? >> i'll get to you in a second we're going to do a story about the nfl and the night game in brazil i think peacock is going to get in on it

it says it's featuring the philadelphia eagles. >> and >> and is that all i need to know or are they playing themselves? >> i like the eagles. >> well, fine, but, you know -- >> either the packers or the browns >> packers and who >> they're still deciding between the packers and browns. >> either one, both are worthy competitors. we'll get to that. >> athletic, not the atlantic. my eyes. >> just today? >> my contact's dry. i can't see. apple announcing it's going to hold its annual developers conference in june some software makers were invitesed to apple's campus to celebrate in person. apple watchers say the company could reveal its long-awaited artificial intelligence strategy we're going to talk more about

strategy with steve kovach later this hour. this is what i was talking about. news from the nfl, after previously saying it would not schedule games on christmas because it falls on a wednesday this year, the executive said the change came after unexpect ldly strong audiences for last season's three christmas games that would make sense. as a result, there will be one, and slightly two this year they're opening a week friday night game played in brazil featuring the philadelphia eagles and now we ooh know either the packers or the browns it will be exclusively available, exclusively available. just sign up now there's a lot of good stuff between now and then nbcuniversal's peacock streaming service is the only place. it's the parent company of this network. and amazon's prime video service

streaming has achieved the streaming rights everybody's got amazon, don't they because they've got amazon prime for delivery not everyone has peacock yet you're going to need it if you want to watch it on a friday what else have you got to do do you have something to do, steph? you're married with children you have nothing to do. >> you have lots to do when you're married with children. >> i was thinking, wow, party on. >> nobody up this hour is not party on. >> you can take care of the kids and your family responsibilities with the tv on right? >> yeah, when you're the dad >> definitely. coming up, we're going to talk technicals ahead of the "opening bell. as we head to break, we have new results from the deliverial fa investor survey -- you're not

watch "the view, are you we look at investors, top strategists, and cnbc's own contributors most said stocks outside of the u.s. >> before you go away, this is -- yes, scott gottlieb, dr. scott gottlieb weighing in on the drug we were talking about win we veer, which is the new lung drug that can help, it's $14,000 a vial, dosed every three weeks, so the annual cost is $238,000. ay, hoa. okmedicare, thank you. the nasdaq 100 or the s&p are the ones they said you should buy we'll be right back. >> announcer: this cnbc program is sponsored by baird. visit bairdifference.com

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this is -- you know, bitcoin, we watch that and don't know what it's going to do this is a really significant move in gold maybe it has to do with geopolitical tension but usually it's about -- isn't it about money prijt is it an inflation hedge because if inflation is coming down, why is gold going up because we're going to start printing again, i guess. >> right joe, thanks so much for having me concerninged by coyne, a lot of people call this a bubble. i take issue with this as with a bubble burst, it doesn't come back. as we've seen with history over the past ten years, it has big spikes and a lot of devastating losses at the same time. proven itself when it comes back and it's proven it can go past that high by a substantial market even before you get to that

point, technicians love bitcoin because it pays attention to the tentacles. there's a breakout we pointed out a number of months ago that had a 100% move that people said how can it possibly get that far. here we are. and you can make the case there's news-related, so forth and so on. i think it's very important to realize the nasdaq class of people want to get involved with a lot of times they move with the s&p 500. a lot of times if you put it on the same chart, you see that they movie together more often than not it's very rare one moves in one direction and the other in another and it's important to see both can continue obviously to move with one another. >> i'm trying to figure out what you said about gold there. the question i asked you was entirely about gold. you said you mentioned -- so what about -- that was what you came to talk about was bitcoin or what about gold

why is gold so firm? >> well, gold, look at this over the last four years. it's been trying to move higher. right now i look at that as one big high-level consolidation pattern that's been taking place near the all-time high of 2011 i think when you're in an environmental like this where people are going after breakouts, no matter what it is, gold, bitcoin, s&p 500, breakouts like this, they're moved forward when they haven't in the past. i have an upside target near 3,000 at this point, and that can continue to work out as we hold the breakout point right around 2,100 or so. >> the s&p i was trying to figure out what you feel about it 6100 if it gets through a certain level or, what, that's 8% above the midpoint? what's your analysis based on? >> sure. the 100 level was based through the breakout, which was really a

very big bush pattern. it's still 17% away. the good thing now is the market hasn't pulled back much, so it has the ability to pull back 7% or 8% and still keep that targeting attack this is about the smaller patterns working first to get to this point starting with october 2023 low, s&p has biltsd in -- broken out from five didn't smaller bush patterns the moecht recent one being 5180 how does it work it goes through a number of steps. number one, it has to stop going down a follow-through, and a higher low, and then seeing a clean break. we need that it can't be vie lated until it eventually hits that target. again, s&p has done that five consecutive times. it sounds easy right now, but we know there's environments when it doesn't work.

we're able to look at it where it's forming we couldn't get to that point where we had the necessary moves to break out, so on and so on. it tells us, f okay, investors want to continue to buy -- even though it's only been about 2 1/2 percent the entire time so far. >> what about the yields >> the 10-year is one we want to watch. one way i would look at this on a weekly basis, putting ammo-mentum indicator on it. what's important about that is on the way up when it was a fine 2 2021, 2022, they routinely got overbought and extremely so. it's an indication of how strong the market is. now, right now, the yield's been moving higher, but in a very subdued way. it hasn't gotten much aborn the new point. the momentum isn't there

that's important because that's going to give us an indication what traders think about inflation and what the fed looking at the market with the 10-year yield in this respect for guidedness as well. >> very good thanks, frank. to read more of frank's work, go to cnbc.com\pro. when we come back, apple setting a date for its development conference we'll tell you what they'll announce as they look to bounce back from a rough start on the year "squawk box" will rhtacbeig bk. [alarm beeping] amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen.

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welcome back, everybody. apple will host its development conference on june 10th. it could unveil its artificial intelligence strategy. steve kovach joins us here. >> apple onin 2024, the largest cap in the world a slew of headwinds, a slew of them coming from governments around the world have humbled apple, sendinging shares down year to date, all the while its big tech peers climb on the hopes of ai. you have the china business, which may not be improving you saw the iphone sales fell in the first weeks of 2024 from the same period a year ago that's according to data from counterpoint research. and the eu said monday it's

investigating apple and thinking of steep fines and last week, of about, the doj unleashed its wide-ranging antitrust lawsuit. what will change this? mark down june 10th on your calendars. that's when apple said it's going to hold its ww d.c. annual development conference if you don't believe me, take a look at this ex-pose from greg, apple's marketing boss, teasing an absolutely incredible ww d.c. he capitalized the "a" and the "i." pretty sneaky. apple's put enormous pressure on its to break new ground in artificial intelligence.

now after ww d.c. and we get through the summer, apple will release its new iphones. though will need to come with exclusive ai features to convince folks to buy. at the end of the day, it's all about moving iphones. >> what's the most likely path with apple and ai? we heard reporting how they could be teaming up. google >> google, and in china, baidu this is interesting. when we got the baidu report thursday or friday of last week, that told me more. they already have a deal with baidu over in china for search like they do here. so that makes me wonder if this is more of an ai search thing that they're going to do and do other ai stuff separate hi on their own. it's really unclear. but that's why ww d.c. is so point. what is the performance of that relationship, how much is apple go ipg to be relying on outside technology versus what they've been building internally. >> tim cook was in china meeting

with leaders there i think that's been the most -- the eu, you don't know what's going to happen. china, you don't know what's going to happen if tiktok comes. that's a huge thing. >> it's symbiotic. apple provides a lot of jobs for all the people in manufacturing and they have a big retail footprint and so on. every time tim cook is out there, you don't know what he said it's unclear if he got that meeting with steve as well. >> one guy i'd meet with. >> xi? >> no. tim cook he's an enigma definitely. i'm not sure what he's trying to do they had it going. they had the right idea, you know it's their brand of capitalisming and now they're back to some type of state-sponsored -- it's hard to keep that many people in line when you get a taste of --

>> when you have american businesses -- >> that's what i mean. coming up, an update on the deadly bridge collapse in baltimore. we'll talk about the potential disruptions to the logistics and transit on the east coast. that's next. and as we head to break, here's a look at yesterday's s&p 500, winners and losers [thunder rumbles] >> announcer: winners and losers is sponsored by state street global advisers. ♪ ♪

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good morning and welcome back to "squawk box," live from the nasdaq market site in times square checking on the futures this morning, just about every morning,u that's solid solid buying going on across the board and the dow and nasdaq

we haven't had a 2% declean in for forever in averages, and that's the default trade. buy equity. >> so lid as a rock. shipping along the east coast could be disrupting for months to come after the collapse of the francis scott key bridge in baltimore. for a look ahead at the impact on the supply chain and u.s. infrastructure, we want to bring in kathryn thompson. she's the ceo and founding partner of thompson research group which tracks the industrial and construction sectors. katherine, tell us a little bit about what we can anticipate. >> i think if you step back and set the stage, ports all along the east coast have seen unprecedented flow of goods, and it's not just from post-pandemic. in 2016, the panama canal skpapgs was opened up and you saw an explosion of shipments that were diverted from the west

coast to the east coast. that was a stress and then you had covid supply chain issues. just when they got their footing, you have this happen again. you have another issue such as the drought in the panama canal, conflicts in the red sea but, becky, the silver lining, there actually is very good funding for infrastructure, and we do expect to see those dollars put to work very quickly. >> kathryn, the industries that will most likely be affected are automobiles. some 50,000 automobiles go through and not all of the east coast ports are set up to take automobiles. >> correct. >> things like farm equipment. what do you anticipate in those particular areas >> well, they're scrambling. so the first thing, you know, you're right the baltimore port is the number one port for autos

you know, from what we've been told, the port of brunswick will be a key area to divert some of those autos. but there are other goods, coal, gypsum, a lot of goods that come in and out of the heartland of america, and those will go to closer ports in new jersey and virginia, all along the east coast. >> you say those ports are more congested, but i also heard many of them are only around 70, 75%, maybe 80%. that does suggest there would be room for additional categories. >> yeah. you nknow, yeah, you're right you're going to have a little bit more flow. it will be a little bit more easier the key thing is are the ports that set the panama ship, they're ships that carry 2 1/2 times the amount of goods they used to. not every port can do that not every port along the east

coast is set for that. the key thing is are they able to sep these big ships >> okay. go ahead >> but i was saying as far as infrastructure funding, just to put this in perspective, another way to frame it is to look at construction equipment in place. we've seen a 50% increase over the past essentially years from funding. 14% increase by the end of 2023. leading the charge is infrastructure highways and roads 25 plus per cents. water and infrastructure, up double digits. you'll see that. there will be a funding push with congress. but know that on a state and local level, there's an amount of funding and the way to get things going. >> one of the things that really shocked me yesterday was the vulnerability of this bridge and questions that it raises about

vulnerables in other infrastructure, key places, whether that be ports, railways, whatever it may be along the line, the bridges. i think this does cause some reflection when it comes to that >> yeah, no, it is this is exactly the type of infrastructure issue that's becoming the highlight in your previous session you talked about tech. others think about bridges and roads. but you've got a whole host of tech infrastructure that's in the early stages we would argue in terms of build-out. and so, you know, it's great that we have funding set up to build the actual structure and the network, but there's definitely going to have to be addressed safety concerns to mitigate the effect of these disruptions like this. >> right it didn't seem like this bridge had the sort of dolphins, which

are barriers that go around, whether they be rock, sand, cement or anything that i've seen on other bridges that offer that type of protection. >> structurally, it's the third largest expansion bridge in the world. so even the length of it and the type and size created some amount of mobility so what may have worked in the past, becky, may not work in today's marketing going forward. >> kathryn, because this is a business network, i el ask are there companies or stocks you think will benefit from all of this infrastructure bill? >> there's a couple of names i'll offer one of them you pointed out is inspection so there's a company called api group, apg, they do a lot of infrastructure and commercial building inspections that's going to be key practically speaking, there's going to be a lot of

construction in and around, and so you're going to need heavy equipment very quickly to get things going so the equipment rental companies, united rentals in the them, and you see box containers, first in, first out, you'll have plenty of those. finally with any amount of construction, you'll see a lot of heavy materials, and along that line and areas that have a presence in that, the bulk of materials, you'll have crh and finally martin marietta. >> kathryn, thank you. katharine thompson from thompson research group. >> thank you very much have a good day. coming up, retail stocks are on the move after some quarterly reports. that's coming up after the break. a reminder, get the best of "squawk box" on our daily

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shares of h&m rising all the way up from 1.3. speaking earlier this morning, the company's new ceo highlighted though improving margins along with lower inventory and strong cash flow i thought this was canadian. >> it's not. canada goose announcing a 17% of

its work force it will cut staff at its company headquarters which roughly doubled its staffing between april of 2021 and april 2023 the company's holiday sales grew 23% year of year but fell short of what the street was expecting. department stores look to keep inventories intact other retailers include under armour and nike. think about it they're depending on department stores this is one of them. for one year, the stock is down by about 38%. when we come back, the first patient to receive a neuralink brain chip was able to move a curser to play chess online. now one larm wants an answer to the fda's inspection before human trial. we'll ask dr. scott gottlieb about that and the approval of merck's new treatment for a rare lung condition

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welcome back, everybody. elon musk's neuralink implant allowed a human with paralysis to play chess online roman blumenauer has raised concerned to the fda if it should be tested in humans at all. joining us is dr. scott gottlieb, board member of

ilumina adviser and cnbc contributor. this is something we have been following pretty closely there are questions being raised by this lawmaker if whether the fda should have approved human trials before they actually did their investigations and checked out the company. what do you think? >> well, look, i would imagine the fda did investigate some of the allegations that surfaced publicly about the conduct of the animal trials. it is not at all clear that the people overseeing the human trials here and probably aren't the same people who oversaw the animal trials and not a formal conclusion that the company did the animal studies a lot of times they're outsourced if there were real allegations of poor handling of the animals in those preclinical studies, that would probably heighten the scrutiny that fda would apply to the trial more broadly including the human aspects of the trial, the phase one, phase -- the trials with human subjects and so i suppose the fda did that, that they're looking at the company's oversight of

clinical trials and protocols they have in place to ensure good governance of those trials. i would imagine that if there were real findings with respect to how the animals were handled in the studies or mere allegations of that and the fda did an investigation, did an inspection, that that would heighten their scrutiny in terms of how they would look at the human trials as well >> i've been completely impressed with what i've seen, just from the ability of this paralyzed individual, this gentleman, to be able to play online chess, what he said about it was pretty phenomenal other people have said, no, there has been research like this done before you know more about this what are your thoughts on it >> well, there is a number of companies working on these brain computer interfaces. two other companies have fda clearance to conduct human studies. about 40 implants, a federal study in 2022 looking across this category. and documented about 40 cases where these devices had been implanted in human subjects.

this is a technology that we have been working on for a while, neuralink is another entrant into the space i do believe it has promise. the ability to read electrical waves off of the brain and be able to correlate how those would line up with certain outputs, certain intended outputs is a technology that we have been working on for a long time we collectively meaning the research community a lot of this is based on machine learning you're looking at patterns for the electrical impulses put off by the brain and trying to determine how those would translate into intended actions and then trying to stimulate those actions to -- either through a computer or a mechanized device that the user may wear to try to restore some partial function for someone who is a quadriplegic. these technologies have a lot of promise. other companies are working on it. >> that's amazing. whoever invents it, fantastic. kudos to all of them for trying to push this research forward. while you're here, let's talk about another issue we were talking about this morning you were listening in.

we were talking about the approval of merck's new treatment for a deadly lung condition. it sounds, again, like an amazing advance. but it is pretty hefty in terms of the price tag >> yeah, look, this is a very promising drug the first drug to attack an underlying mechanism that causes disease progression, vascular proliferation we see in this disease. it is a devastating disease, affecting 40,000 americans the price is high. it is higher than what people were anticipating. some external groups were estimating what a cost effective price would be icer is one of those groups. they usually come in low they were asking me $35,000, $40,000 a year, this is coming in at $238,000 a year. about two-thirds of the population is covered by medicare, medicaid one third will be commercially insured. so we'll see what the government does with the pricing of this. and how they push back with some of the authorities they have under the inflation reduction act. but this is a really promising

breakthrough merck had acquired this asset back in 2021 when they did the a accelron acquisition >> did it work with multiple myeloma or is this the only indication it has been approved for. it was an $11 billion acquisition. >> right so at the time that merck acquired the company, this was the lead asset being developed for this indication. celgene was working on blood cancers and blood disorders. that didn't work there was another marketed drug that merck acquired with that acquisition, does $500 million in sales it is not a very big drug from the standpoint, you know, the blockbusters that pharmaceutical companies usually go after this was the lead asset they were going after with that acquisition. >> maybe that explains why the

drugs are so expensive the only way to get things to market is to get bought up by a bigger company, which has the resources to get things through the fda process and get it to market it gcosts a lot of money to get to market. that may be part of the issue. >> i also would say that a lot of the price controls in the marketplace also push up the launch prices. a company like merck knows they have to discount heavily, especially into the medicaid population, 340 base, that $238,000 per year price isn't the price they're actually going to get after they have to pay some mandatory discounts across the entire marketplace they push up the launch prices and the list prices, knowing that they're going to have to discount a good portion of that back to the government and the commercial insurers. we have to be mindful of that too. this is probably heavily utilized within the 343 population that's a big program right now that causes mandatory discounts back to the insurers >> scott, thank you. it sounds like a far longer

discussion that we need to have about why drug prices are high and how the system works and it doesn't. > ogmmttlieb, thank you. >>prraing note for you, merck's ceo robert davis will join "mad money" tonight at 6:00 p.m. on a cnbc exclusive interview. "squawk box" will be right back. you know doug, ever since switching to workday you've been a real rock star. rock star? what do you know about rock stars? billy idol? i mean where's the skin-tight leather? my shoes are leather. where's the unnecessary zippers? that thing! billy, rock star is just how doug feels when he uses workday. thanks, rory.

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expand beyond trading, announcing a credit card with a 3% cash back feature co-founder and ceo vlad tenev joins us to talk about the news and the world of retail trading as the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square, i'm joe kernen, along with becky quick and andrew is off today. it is a wednesday. but we're off friday, so it is really like a thursday, which is better than a friday because it is further from monday, and wednesday is even further from a monday, so this might be the best day -- >> forgot until you said that, that we're off friday. >> that's hard to believe. that's hard to believe it is much easier to get up on a

wednesday if you have friday off. it is hard it is still hard for us. it is hard 3:30, it is hard that alarm clock, sometimes i want to take it -- i just want to slam it -- but i need it, so i can't, but -- >> you don't use your phone? >> i don't use my phone. >> really? >> no, i have to leave it on and every time i have someone text me or something -- >> i shut off all notifications. >> what if you need a -- you don't have kids living in other cities >> i guess >> they're going to call some place else they'll call the house >> you still have a land line, boomer >> yeah. >> she's not a boomer. i don't think i am either. here are the futures this morning. i don't feel like one. i feel the same, looking out. >> my grandma talks about how she still feels like she's 18. i get it. >> looking out looking in, i go whoa. up 186 points, nasdaq up -- >> i complained my head shots the other day.

>> how can you complain about your head shots? >> i don't like the way it looks. he said, well, it is a camera. >> thanks. thanks >> that makes you madder. >> no kidding. >> a camera -- a camera can take a bad shot >> especially if it has a bad object it is looking at. >> treasuries, take a quick look, if you have any idea what we're still talking about at this point, treasuries are, i think, that has not been the story, but 4.23% do we even care about the fed anymore? crypto, at $70,000 gold above $2200 and you're going to be getting all hollow easter egg bunnies because cocoa is so expensive right now. some people like them more -- i always thought -- >> i like them. >> i was mad if i got a hollow one. my parents were cheaping out it is air on the inside.

it is free >> it is thin chocolate. i like thin chocolate. we have some results from the delivering alpha investor survey that brings together the market intelligence of the nation's leading institutional investors. top strategist and our very own cnbc contributors. we asked them for their outlooks and strategies for the second quarter and beyond and here's what they think about how many rate cuts are coming in 2024 0% expect more than 3. up to speed on that. 26% say 3 cuts 61% expect 2 cuts. 13% see just 1 cut and no one expects the fed not to cut if i was taking a long bet, i would take that bet. before i would take 3 or longer, unless there is some sort of a crisis. >> joining us -- let's see what jackie cavanaugh, if she cares, portfolio manager at putnam investments. i guess my point, jackie, was that the market on any given day we either thought there is going to be x cuts, y cuts, whatever,

but every day it seems like the dow in the morning is up 150 points and we had a series of new highs across all the averages i guess maybe you would like the fed to ease eventually, but there is other things that must be happening, other positive things >> yes, joe, thank you again for having me on i would agree with becky, i would take the under and take no cuts for this year i just don't think the impetus is there to generate a cut if you just look at the macro backdrop, unemployment remains very strong, gdp estimates continue to rise, cpi is not really where they want it yet, and you actually had financial conditions continue to loosen. investment grade spreads, high yield spreads very tight ipo market is open again so i just don't see the impetus for the fed to cut to your point, we have moved from six cuts expected coming out of the december meeting to three and the market has rallied

up 10% in the face of that i do think there are other secular things happening, the economy is strong, the consumer very resilient and so if you're the fed, i think they're just going to keep moving the cheese. we came in thinking six. now we're at 3 and i suspect by the end of the year we're at zero or maybe one cut, maybe we get one by the end of the year and the market has been incredibly strong in the face of those changing expectations, which would not probably have been my base case coming into the year >> what are the things that has worried people like jamie dimon and others is that inflation is not totally tamed. and that if it were to continue to be sticky or even go up like it did for the first couple of months of the year, that eventually the fed causes a recession. if that's not going to happen, and if inflation really is under control and, you know, for

whatever reason, fed or otherwise, if we're in a disinflationary period in the market is -- and the economy is strong, is there any reason that we're going to get tripped up? what would trip us up? and if the economy stays strong with low inflation, why shouldn't the markets go up? >> so, i think there are two things that could be potentially, you know, this is the what keeps me up at night. and you kind of touched on it. in the event that inflation starts to reaccelerate, i think in the last meeting the fed realistically widened the aperture of what they're willing to accept from inflation you saw all of their estimates go up. estimate for gdp went up, estimate for inflation went up, estimate for unemployment went down and yet they were still only calling for the same three cuts. so i think that they have certainly widened the aperture that maybe it is not exactly two, that if it is in the ballpark of two that that's going to be sufficient for them. because there are dynamics happening under beneath that will have some upward pressure, just, you know, reshoring of

supply lines and different things i think the concern and the risk to the market would be something that wasn't even in your survey, which is what if they have to go back and start hiking again? what if inflation does start to reaccelerate you still have wage inflation of 4% to 5% that isn't typically consistent with 2% of core inflation and so in the event they had to start reaccelerating and hiking cuts again, that's not an expectation. that would be a negative, that would obviously be negative for the markets and for equity valuations and then the second piece is the real one that i worry about a lot, which is, you know, we are doubling our treasury supply in 2024 and if you get some sloppy options, that could put a lot of pressure on markets as well >> could the markets, the equity markets, already kind of know that this is actually what is playing out or is that what traders are hoping for, that growth and inflation aren't

necessarily correlated or related or that we could have growth without necessarily having hyperinflation? >> yes i think that is what you're seeing if you go back, we had a very tough -- the market has been running 6 to 8 months as it always does ahead of the fundamentals and i think what the market is telling you is you are going to probably have slightly heightened inflation, you may not get back to the 2%, but there are trends, like, the generative a.i. trend, it is so powerful, if you think about the productivity gains that is going to create over the entire economy, not just the benefits that we're going to have in tech, but the benefits we have across the entire economy, that is huge productivity gains and that's very supportive of markets and valuations i was meeting with an insurance company yesterday. they have 400 different use cases for a.i. and how that's going to improve their business. and improve their productivity, improve their risk selection

that's a powerful trend. that's what you're seeing in the markets. >> i called you jackie, but can we put up the -- did you see what jackie's name really is >> it is jacquelyne. that's jay-quellen do you remember keye and peele >> it is jacquelyne. i'm from boston. my mother loves the kennedys my brother is john >> jay-quellen don't argue with me. mr. garvey it is beautiful. jackie, thank you. >> thank you, joe. thank you, becky have a wonderful easter holiday. >> you too. when we come back, moderna giving investors an update on its vaccine trials the ceo stephan ncbeal will join

us next. and vlad tenev joins us as he gets his company into the credit card business. "squawk box" will be right back. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. encore energy, america's clean energy company, now in production in south texas.

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welcome back, everybody. moderna holding its annual vaccines day the company announcing multiple vaccine programs advancing to late stage clinical trials joining us now, first on cnbc, is stephane bancel, moderna's ceo. and, stephane what are you going to be laying out today, what are the new vaccines >> good morning, becky we're very excited today actually because we have not only respiratory vaccines doing extremely well in clinical data, but a work portfolio of positive

clinical data for viruses, viruses for which some of them there is nothing available, like ebv, which has shown to lead to -- in young adults. >> that's the epstein-barr virus, right >> that's right. think about how it could change patient care if we could have people get a vaccine and not get ms that would be just an amazing impact for patients. we will show new data for norovirus. we have a lot of people still dying of norovirus there is no vaccine available on the market it is strong in phase two, going straight to phase three. we know the platform is working. if you think about the platform with covid vaccine and rsv and final review by regulators and the data, we announced next gen covid vaccines are working if you think about the vaccine

platform is quite amazing, compared to industry, you know, we have twice the success rate in phase one, compared to the rest of vaccine industry we have twice the success rate in phase two and another 80% of success in phase three. so, we are investing aggressively to bring those important medicine to patients >> stephane, i think it is really amazing this idea of the platform and being able to bring things -- and have more success in the things you're trying out, but the street is still a little doubtful of all of it. looking at your stock, it is down 27% over the year over a one-year period. that's because the vaccines for covid, there has been less demand, less government money to fund those things. i mean, you really have to prove to investors that this is going to be capable, your platform of kicking off a lot more what do you feel like -- do you feel like that message is getting through or not >> i think every time a company

does something that has not been done before, it is hard for some people to see what is possible if you think about the numbers i just mentioned, you know, if you think about the industry average, success of phase three around 60%, we have 80%. if you think about phase one, we have twice as successful this is new. this is a new platform the speed at which we can move is new what is exciting now is with the launch this year, and then the data yesterday on the next gen covid combined with flu is going to give a single shot, covid and flu, that's going to help a lot. if you think about covid, as you say, the market has come down in terms of demand for covid. but the flu demand is three times bigger than the u.s. we think the combination of vaccines should help a lot. >> i think that's one of the bigger questions too is is there vaccine hesitancy in the

aftermath of covid there is a lot of things that are still swirling, a lot of frustrations that certain areas have i think coming out with more novel things to attack diseases that people haven't thought about before, didn't think there was a solution to, is part of the big issue. where do things stand now in terms of what you can do, on the cancer front >> so on the cancer front, we are still excited as you know, i was with you on the show back in december, when i was showing three year duration of protection against disease coming back. we are starting lung cancer, a couple more trials going for different types. we believe this is another place where we should be able to help a lot. if you look at the possibility of respiratory vaccine and latent vaccines and cancer and

rare disease, the platform is extremely broad. i think in the next 12 to 24 months there is going to be a lot of product launches, a lot of successful phase three and people will be able to see what the platform is capable. >> the latent diseases, i think that's pretty interesting because we all know about the shingles vaccine that you can get. that's if you have exposure to the chicken pox vaccine when you're younger -- chicken pox when you're younger. that virus lives on. this is the same sort of story a lot of these are viruss that we have been exposed to when you're younger doesn't come back and impact you until you're older, under stress, maybe not well that's what these entire group of five vaccines are going after? >> that's correct. and 100% right, becky. latent virus, viruses that we get exposed to, we get infected by mostly when we're teenager, young adults, and those viruses, some of them give you disease

when you get them, like mono nucleosis, you can get that as a teen, but that virus, once it is in your body, they don't leave your body. as we get older, as we get over health issues, those virus comes back and that's a big public health issue because a lot of disease, cancer, we believe are linked to those viruses being in our body and basically towering our immune system. one that everybody knows well is hpv. >> these are herpes viruses. >> correct they're all herpes family viruses. but if you think about it, there is an amazing vaccine to protect young people against hpv but there is nothing for -- there is no vaccine available for ebv. no vaccine for hsv, herpes virus that most are familiar with. so what moderna is trying to do

is develop because we can deal with very complex viruses. the cmv vaccine has six molecule in the vial, that's what is required to make the vaccine work. >> are these vaccines for kids if these are diseases, herpies viruses you're subject to as a young teenager or young adult, are these vaccines suggesting for kids too? >> to protect them before they get infected by the virus the first time ebv, for example, working on a vaccine that is used before infection, also working on the treatment vaccine that will be used for before that are already infected ebv and the risk of ms, we believe that people that already are infected by ebv virus, if you can keep the virus load, the copies of the virus in check, you should not have like ms.

there is cancer that seems to be linked to ebv. there are cases of long covid that seems to be linked to ebv reactivation in our body we think it is possible the product will be really important to prevent people from being sick, including very, very difficult disease. >> we're intrigued this is interesting stuff. >> burketts lymphoma, this is one of the first times the virus was seen to be like a carcinogen, i think, right, stephane, and that was a major development. anything that can -- anything that can go in and mess up your dna permanently can cause cancer, whether it is light, carcinogens, viruses, some naturally occurring sequences too, stephane. it is all a mess and hard to -- so hard to figure out. >> yeah. i think we're learning a lot every day, joe as you say, i think the more you

have your body having to deal with outside agent, which is why we kind of think about it, if you have infection and if ebv infection and chicken pox infection and -- the more you have those things inside your body it is going to create inflammation, tire your immune system as we know, the key of the immune system to fight cancer, which is why the more we can do to prevent people to having those disease, the more we help people live a long healthy life. >> we want you to do it after we have them. we probably have all of them exposed to every virus. >> yeah. for a lot of reasons i have four dogs >> you're just older the older you go, the more stuff you get exposed to, and that's why it is targeted for teenagers. that's like the shingles vaccine, after you have already been exposed to it stephane, thank you. really interesting stuff and we appreciate your time.

>> thank you so much coming up, a list of your premarket movers futures right now still strong "squawk box" will be right back. >> announcer: time now for today's aflac trivia question. which company's name is derived from the greek goddess of victory? the answer when "squawk box" returns. uh-huh... - hip-hop! - limping! mmhmm! medical bills! uh-huh! - pancakes! - cash! who pays you cash when you have medical bills? grrr! no idea. [tapping] gap! the gap left by health insurance? who pays cash to help close that gap? aflac! oh, aflac! get help with expenses health insurance doesn't cover at aflac.com pictionary?! ♪ ♪ doesn't conext.t aflac.com next. stop. we got it? no. keep going. aga... [ sigh ] next. next. if you don't pick one... oh, you have time. am i keeping you from your job. next. i don't even know where i am anymore.

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and now the answer to today's aflac trivia question. which company's name is derived from the greek goddess of victory? the answer, nike all right, let's get a check with dom chu about what's happening with the markets, premarket movers hi, dom. >> hi, becky, hi, joe. let's check on shares of electric vehicle giant tesla they're up fractionally right now, three-quarters of 1%, just around 350,000 shares of trading volume premarket that's after nearly 3% gain yesterday. now, this morning, there is a slate of fresh analyst commentary out on tesla ahead of the its release of first quarter delivery data expected out next week citigroup is maintaining the new full rating, cutting the target price, driven in part by lowered

expectations for those q1 deliveries receiptburn atlantic cut its price, it was $160 before. a lot of the negative sentiment on tesla lately has been to the extreme side now, for more on all those tesla calls out this morning, and other company commentary as well, just head over to cnbc.com/pro, subscribers can get the full story on those analyst calls. next up, shares of the newly minted trump media and technology group djt. the holding company behind truth social social media platform it finished its merger with special purpose acquisition company digital world open for trading yesterday gained 16% to close out the session. it did jump by as much as 59% at one point during the day shares are up 12.5% over 300,000 shares of volume and pharma side, a check on

merck, which is up over 4% right now, 30,000 shares of volume it is catching a bid after the u.s. food and drug administration approved one of its key drugs that treats a rare progressive and life threatening lung condition known as pulmonary arterial hypertension. the drug is helping merck grow its revenue stream as cancer treatments lose some patent protection in the coming years for more on that story, and what else merck has planned for the coming months and years, tune into "mad money" 6:00 p.m. eastern time when merck's ceo robert davis will be one of jim cramer's very special guests on "mad money" tonight. back over to you >> okay, thank you, dom. we'll see you in a little bit. up next, robinhood going beyond trading and offering a new credit card. the co-founder and ceo vlad > nev joins us after the break >>and later, former sec chairman jay clayton will join

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robinhood unveiled its first ever credit card and a redesign of the brokerage app joining us now first on cnbc is

robinhood co-founder and ceo vlad tenev great to have you here >> thanks for having me. always a pleasure. >> in is outside the box kind of, but maybe not. maybe it all makes sense as the company branches out and becomes more of a financial services firm >> yeah, i mean, i've been saying for a while that what we would like to do is build a world where for our customers, all of their assets are custodied at robinhood and every financial transaction goes through robinhood and credit is just such a critical part of how -- >> that's all you want to do with robinhood have all their assets and everything goes through robin -- >> i think we'll start with those two things and then we can kind of go beyond that. >> it is unique. it is no fees, right >> yeah. >> 3%. what do you usually get? you don't get -- >> there is two -- >> that's nice >> types of credit cards this is the solid gold one you want to touch it

>> solid gold. >> it is a hunk of solid gold, yeah. >> no fee for that you'll give that to me for free. >> if you're a gold member, there is no fee. >> this has your name on it. >> yeah, yeah. so -- >> you didn't really bring -- we don't -- there is no joseph kernen -- >> so, anyone can get that if you refer ten friends to robinhood. >> you can get -- so 3% is more than normal. no fees. 5% you want people booking travel through robinhood too. >> yeah. so, typical cash back cards, we surveyed the entire landscape, the highest that is sort of like commonly available with no limits is around 2%. a lot of cash back cards are even lower than that 1.5. so 3% is beyond what anyone else offers with no limit, no minimum balance, no net worth requirement to be part of the program. >> how do you make money on that that sounds like it is a little risky of a strategy because the

reason others are out there, unless you think everybody is not offering more just because they don't have to and they're all in collusion on doing that. >> i think, you know, credit cards are one of the most profitable segments in financial services, possibly the most profitable. >> they don't give away that much cash. they have limits on what they set on it. they have real heavy checks, hefty checks they put on people. how do you make money? how does that come back? >> there is two ways so, one way is because we sort of have a vertically integrated system, we not only earn the interchange revenue, but a credit card is also a lending product. so, there is revenue on balances that customers hold and there is generally two types of customers that use credit cards. there is folks that pay off their balance in full, every month. and those are called more transactors. there is obviously a great card for transactors because of the rewards. but, it is also an amazing card

for people that are building credit this might be, in my opinion, one of the best credit building cards out there as well. and for customers that are using it to build their credit, we do earn the economics on the balances and for customers that are transacting, it is all about the ecosystem benefit. and we actually have seen data on this from robinhood gold customers. robinhood gold customers are more likely to adopt all of our other products, their balances with us are higher, their average revenue per user is multiples of a nongold customer. once someone joins gold, they tend to increase the amount of money they put in robinhood, they do more with us, they're more profitable customer, they get more value so the idea is to just add more things to robinhood gold, and for it to be a no brainer value proposition. the whole idea behind robinhood gold is if you're a high net

worth individual, and you're accustomed to getting a level of service from your bank or other financial institution, we want to open up that sort of private client, high net worth experience for just $5 a month to the mass market and that's where the retirement offer comes in, the high yield on cash, the premium credit card, all these are products that you have to have a lot of money to be able to qualify for and we're just trying to open them up to as many people as possible. >> 51% this year, up 17 billion almost, since the bitcoin etf, you're up 59%. now, somewhat related, but it shouldn't -- there is no meme stocks i guess there are. we had reddit and that became public bitcoin is at 70,000 these are animal spirits and you

probably love this world of animal spirits at this point. >> we have to get you guys the robinhood 24-hour market data so you can see what is happening in the overnight. this market close data is a little bit stale >> you're up more than 51, is that what you're telling me? >> well, i mean, i think it would be good to -- we have this product on the market, it shows the -- >> we'll add in the $1.19. >> 6% gain today can i just go back to the credit card vlad, you weathered a pretty big storm back in 2021 in january of 2021 >> yeah. >> there were issues with the capital call that came up. as a result, you had to restrict trading on the platform. you got called before congress in february of that year i realize this is three years have gone by, but there were big issues and the knock on you guys at the time was that you weren't savvy credit managers and risk managers at that point, you were great technologists, but there are some issues that take place

in capital markets and that yo guys got caught flat footed on that when you open up and go to a credit card, that probably raises more questions about will you be able to effectively manage the capital flows and the potential risks that come if there is a downturn in the economy, if there is a meltdown in the markets. >> i think it is fair. back in 2021, we were a startup. we were a small company. we obviously learned a lot from everything that happened around covid, from sort of the huge spike of retail investing to, you know, all the events around the meme stocks. and what we have now is just an unbelievable team. and with the credit -- with the credit card product -- we acquired this company, x1, great team, their chief credit officer was formerly running credit at

newbank, which has been very, very successful. so the team, you know, we have grizzled veterans that went through all of the events of 2021 and have kind of the scar tissue from getting past that. and then we also have amazing experienced people that have done this before that we have brought in, and we're very excited about this product i think customers will love it i also think we have been very prudent about the rollout strategy we know people are excited, but we're going to make sure that, you know, all the boxes are checked and that it is rolled out in a prudent and safe way. >> you think a.i. is back to why you think this is happening? a.i. and the excitement around it has got animal spirits going again in high gear >> i think you just look at the sort of, like, nvidia announcement i don't know the last time that silicon hardware manufacturer has gotten so many people

excited about their new products and the new architecture, so i think it is really a bright spot for american innovation, you know we were worried a little bit over the past few years about whether america's losing its competitive edge to china and some of the players overseas but then you see all of the wonderful stuff that is happening in the a.i. industry and it makes me feel this very good to provide access to this market >> you think this has got legs the meme stock craze kind of ended quickly and painfully. you think it is different now? you think you got a better -- >> at this point, i've gone through so many sort of cycles, ups and downs, high interest rates, low interest rates, higher interest rates that, you know, i don't even really think about it i'm just trying to serve the customers as well as possible. make the products even better.

and, yeah, i mean, the market environment is just going to continue to change we just have to be ready >> the goals that you're talking about, being everything to having assets for everyone there, that sounds a little similar to what you hear elon musk talking about with x too, he wants this to be much more and to find ways to really reach into people's finances kind of like with pay pal or something along that too do you see them as a risk or a competitor >> i think elon has entered so many industries, and, you know, has built compelling products and say what you will about, you know, the twitter x acquisition, but, you know, when i talk to entrepreneurs and social media space, what their take is, now x is a platform that they're paying attention to. and maybe a way that they weren't with twitter >> yeah. >> so, yeah, of course we pay attention to everyone, we try to

learn from what others are doing. i think as far as x, i think it is pretty early in the financial services journey but it is exciting to have people innovating in our space and if it pushes us to up our game even more, then i like that >> who is your target audience for the card is it a younger -- >> you're looking for people who have wealth because you want the gold members to be people that have assets to go into it. but what is the age we're talking about? >> the typical customer is in their 30s. we have a lot of people interested in robinhood who are in college campuses or recent grads starting their first job i think the great thing about this card is the card really fits a multitude of use cases, where as other companies would have multiple cards for each of their customer segments, we really wanted to get that premium card to as many people as possible. in that sense, we do think it will be very useful and probably

the best credit building card out there, so it is good for people that are at the beginning of their credit journey, but also if you're someone that pays your balance off in full each month, that 3% cash back on all categories is pretty unbeatable. it compares very favorably to any other cash back card you can get on -- >> 1.75% is the best i've seen. >> we looked everywhere and we really wanted what this product to win on rewards. we didn't want to just cross sell a good credit card product and have them adopt it we want it to stand alone in the category and be attractive as a source of new customers into robinhood. i think we'll have succeeded when we see customers who were maybe not interested in opening a brokerage account with us, coming to us for the credit card and discovering all the brokerage and retirement offerings that we have >> no reason to have a robinhood

account, unfortunately >> because you can't trade. >> because i can't trade unless it is for the credit card. >> i should mention the credit card is one, and we have a great i.r.a. match i think the best i.r.a. on the market if you're a robinhood gold member, we match 3% and we do that on not just contributions, but rollovers from 401(k)s and transfers from other brokerages. and last year we ended with a little bit under $1.5 billion in i.r.a. assets on the platform and as of, i believe, yesterday, we crossed $4 billion, so we went from -- it took us about a year to get from 0 to the first billion and a half we have gone from 1.5 to over 4 in under a quarter so that product has been resonating very, very strongly with customers and it is very heart warming to actually help people save for retirement and give them incentives when they might not qualify for

traditional employer 401(k) plans. >> great, good to have you -- where is that card can i have that card >> he's hoping you forget it. >> yeah. does that actually work? >> it is my actual card. it was in my wallet, yeah, earlier. >> don't hand it back, though. >> it doesn't have the number on it that's why i'm so -- i'm not too shy to hand it out >> i've done that before, pulled mine out on tv and i had to change -- people could zoom in and see -- >> i have lots of people -- >> it is as simple as possible, just the robinhood logo, the chip and then your name and no number, no expiration date, no sensitive information. >> thanks for bringing it up very exciting. it is a good looking card. >> i mean, we can -- we can work something out. >> thank you >> thank you so much when we come back, there has been a number of high profile

antitrust cases the last few weeks. we'll talk to jay clayton about the new era of antitrust "squawk box" will be right back.

coming up, former s.e.c.

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joining us, former s.e.c. chairman and cnbc contributor jay clayton. talking about a lot of actions brought by any either of the agencies didn't want a settlement maybe it was legit many aren't what they want they want action. >> structural change. >> they do with our greatest companies. some of our greatest companies some of our greatest monopolies. how about that >> you know, let's step back here. >> step back. >> there's a big thing going on which is we just saw a big cooperation agreement yesterday between u.s. antitrust and trust authorities in global authorities. >> collusion we talked about. cooperation, collusion, choose your word but we have to recognize that the u.s. economy is very different from the european economy and certainly very different from the chinese economy. to think that sort of a

one-size-fits-all approach to competition and policy across the globe is going to be what's best for the american consumer, you have to have a skeptical attitude much more nimble capital markets. much more nimble labor markets and something we do know other country in the world does is we throw capital and talent at innovation in a way that is way beyond what you would pencil out. let me just explain this people take a, almost a lottery view of innovation in this country. start-ups we have in silicon valley people in 20s and 30 s live in squalor almost trying to build these companies know be nine times out of ten it's not going to work. but when it works works really well and gets to market really fast look at structure antitrust action over the years, some of that innovation has done a lot more to change life for the

consumer than any government structural remedy. we should be humbled. >> throw at you, counterfactual, that the 23-year-olds are even more -- companies weren't keeping, weren't crowding out, not letting them on the app store, whatever it is. it would actually be better than we're seeing now that's the argument they make. >> i hear that look across the globe. when government selects what a market structure ought to look like, innovation dies. you know, look there's all sorts of -- collusive behavior, price fixing things like that of course you have to mete that out. disclosure, consumers can make great choices. foster that. the idea that somehow the microsoft case was what got a search and you know -- >> google. >> they say created google but it was a browser case. was search really on people's minds? no i think the other industries on --

>> every single time done it with at&t, ibm, microsoft every time better. the right thing do got to do it to every company that's really got a firm grip on the marketplace. i would say because they're so good at what they do apple is great at what they do i don't want an android. i want an apple. are they preventing me from getting an android by doing things that are against antitrust laws are they >> walter isaacson on this week. i caught him fantastic. what's happening here to justify this which is, you're bringing up the consumer and we've had this view through, you know, the obama administration, the trump administration way back to reagan focus on the consumer we'll let the market function. and most of us, now consumer-plus. it's the consumer dus-plus competition. >> he said taking on apple looking at it the same way

standard oil was taken on. do you see it one at the same? >> i don't go far afield. tech and tech innovation and consumer products are far different from an essential resource like oil. look at how we're treat sanctions in russia. right? oil is fossil fuels energy, an essential lelement of our economy. apple watch. we didn't even think apple had a watch. >> and how we're treating ukraine oil. we did not insist on ban on russian oil. >> we're not stopping, not stopping the oil coming out of russia. >> because -- >> because we don't want $4 gas. that's a lot different from tech innovation. >> we also have looked for who's going to save us maybe, from what seems like a totally different view of antitrust under the biden

administration just does. whether lina khan or -- >> is trump going to save us >> because -- we -- >> we talk about it. volatile, unpredictable as he is suddenly flipped on tiktok some think other reasons why he flipped on tiktok. others say because he's mad, enemy of my enemy. mad at google and -- he could be mad at apple for god knows why and continue along with the antitrust action. >> you raise a very valid question which is, over the years has antitrust policy been used for political reasons? and when antitrust policy is used for political reasons, and you get away from consumer welfare i think you get into what i would say is dangerous territory, because how do you explain to people why you're making the choices you're making >> how would -- okay we don't know what's going to happen polls are very tight right now what do you think -- do you think it would change? antitrust? if there were to be a second

trump administration you might be in it. >> i think that -- if you went back to a republican administration you would go back to the same antitrust policy. >> even with trump you do >> not just trump antitrust policies had the same -- >> until now. >> -- until now. don't compare trump and biden. 20 years and now new. >> and you're absolutely convinced this is not a net positive for the u.s. economy, the approach we're taking right now. i am because i think uncertainty in what, exactly what the policy is it's a big negative. >> the notion that big is bad or every merger is going to hurt consumers. do you think that -- what lina the thesis, got her this job and shook up antitrust

euro, worry about competitors, not consumers? what is it you can't tell me? >> i can't tell you. can you tell me. had lina on. >> i throw up my hands. >> hard to get your hands around what exactly it is that they want. >> i -- >> i can tell you that tim wu has said on this set that there's not going to be a settlement they basically want all of this. want to shut it down. >> and big is bad. how big is bad when you say "big is bad" how big is bad what would define characteristics? >> pornography, like that. >> you know it when you see it a big counterfactual -- that consumers would even be better off if apple was doing something different. i feel pretty good about my apple ecosystem. why would i be better off. how? >> when you have that much discretion what happens? competitors run to the

regulators for competing let's not forget that hoappens too. >> very evident in this case. >> do i really want people competing in washington versus in front of the consumer >> all right, jay. you're a cnbc contributor, like a, like one of us. one -- of -- us. i hear that from the bitcoin people all the time. "one of us one of us. >> what will happen? >> we'll see. just after 8:00 a.m. eastern time were you are watching "squawk box," live from the market site. dow up by about 170 points s&p futures up by 20 nasdaq indicated up by 85. joe? over to dom chu. joins us with a look at some of the morning's top pre-market stock movers do you have, last night?

>> i only catch a few of those games. >> nits? >> yeah. i got a lot of family stuff. kids at night, everything else kind of doze off, anyway all right. so, joe, becky, jay, start off with shares of tesla right now higher by just around three quarters percent 300,000 shares volume. underperforming over medium term you see here trying to build on yesterday's 3% gain bp tesla expected to release its first quarter delivery numbers next week ahead of that a slate of analysts covers stock on wall street out with fresh commentary a fresh bearish take over the shorter term and consensus for deliveries too high first half of the year. still rated outperform with a $300 price target. take it for what it's worth pand a buy rating here, say a lot of negative sentiment on tesla extreme. kind of reiterate that buy side of things up about 1% now. tesla calls by the way out this

morning and other company commentary head to cnbc.com/prosubscribers for the full story on those calls. european trading swedish apparel group soaring in action up roughly 12% in those markets after esly topping profit expectations for the most's recent quarter helped by better inventory management. had been a problem for h & m in the past helping in improvement profit margins. finding themselves in a stiff competitive environment these days with likes of fast fashion retailers like zahra, and up 8 to 9%. end with a check on gamestop down 18% around 300,000 shares volume video game and gaming products retailer in a meme stock, so-called meme stocks lagged estimates cutting jobs in a cost-cutting effort without details on numbers involved, becky. those shares down 28% year-to-date another 19% this morning

send things back to you. >> dom, thank you. our next guest says that the bull market is alive and well and could keep charging higher according to carson group's ryan dietrich when the s&p 500 is up first three moss of the year the index remained higher rest of the year 19 of 20 times saying 2024 will be no different. ryan joins us right now. you think no different because you're relying on statistics or what else you see happening? >> good morning. thanks for having me back. so those are sticks that kind of gives us a little clue where we might be, becky. i have more. talk more, but listen. let's start with fundamentals quickly. last eight weeks s&p 500 forward 12 month earning are up like about, you know, two or three percent. profit margins higher. consumer strong. into these things in this camp a year ago no recession pliable market in that camp ever since, becky

yes, history says, side with stronger price, get into that, but the economy looks strong and us as well. >> the economy arouearnings the strength seen to this point. the next natural question is, are we really going to get any cuts from the fed? the market baked those in. willing to say -- i think the idea of getting cuts from the fed is less and less likely. maybe you get one. short of something really cat st -- catastrophic happening >> fed said that push back. three cuts this year make sense here's why seeing, trextremely productivity in our country first time since mid-90s. stronger productivity puts a lid on inflation allowing for higher wages. perfect scenario we're aware of that. same time seeing it. right? we hype from zero to over 5%

inflation running at sub-2%. the door still there we think maybe three cuts this year because productivity is so strong first time in almost a generation. >> inflation, looking at what we've seen recently as running hotter than anticipated. running hotter than expected and definitely above the fed's target employment market doing getter than anticipated economy strong and you don't have a tight market based on most of the conditions we watch. so let's say the fed decides, no we're not going to cut rates still sticking with your predictions for where the market's headed end of the year? >> we would. we're overweight still would be overweight. again, the economy is likely stronger one worry, yes, could inflation come back? what has the fed said? six good months of inflation and two bad-ish months see what friday said with pce. again, not overly worried. again, talk about this, shelter is 43% of core cpi

take is out running sub-2% shelter, issues without a government track we're not sure jumping too inflation to worry about it, becky. don't cut because the economy is strong and hopefully a good sign meanings earnings, profit margins and growth are still there. >> ryan, thank you. >> thank you, becky. when we come back, logistics companies scrambling after the francis scott key bridge collapsed outside of baltimore analysts on ucng atrkind shipping we'll be right back. rylee's re! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”.

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offering a diversified portfolio of mining royalties in one simple investment. learn more about a brighter way to invest in gold at sandstormgold.com. welcome back to "squawk box," everybody. among today's top business stories, theed fza green-lighting a drug from merck designed to treat a life threatening lung condition in adults 40,000 people in the united states live with pulmonary arterial hypertension. the drug should help merck diversify its revenue stream as a top cancer therapy approach as loss of market exclusivity in a few years. merck shares up by 5% this morning. tiktok could be in line for

more government scrutiny politico reports the federal trade commission is investigating the company and could disease in the next few weeks to sue it. politico say lesses into claims tiktok and parent company deceived users denying people in china had access to their data talking more about tiktok in a few minutes. and online trading app robinhood branching into credit cards as it looks to gain traction tr in the personal finance market ceo vlad tenev joined us last hour to auk about that card. only available for the company's premiere-tiered customers. >> one somebody joins gold they do more with us in robinhood more profitable customer and get more value the idea is just add more things to robinhood gold and for it to be a no-brainer value proposition. >> robinhood expects to roll out its credit card broadly later this year.

moving up, the transportation logistics and overall business impact emerging after yesterday's bridge collapse in baltimore. talk about the possible effects on the u.s. supply chain stay tedun you're watching "squawk box" on cnbc.

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six construction workers presumed dead following a bridge collapse in baltimore early yesterday morning. filling potholes at the tile of the impact search for body set to resume this morning two people recovered from the water yesterday. the international transportation safety board says it recovered the ship's data recorder and federal and state regulators say it appears to have been an accident the cargo ship reported losing power just before it slammed into one of the bridge's support pillars. president biden vowing the federal government will pay for the cost of rebuilding the bridge meantime, the event has potential for up-end commerce up

and down the east coast. joining us to talk about the potential logistics and commercial fallout from the bridge collapse, managing partner donald broten and something that obviously, you know, still thinking about the people that lost their lives, and just the -- fresh disaster in our minds, donald, but you can't help but think of the economic implications when you have a fairly big port you point out that the port's already -- i didn't know this -- already marginalized in recent years so it's not even in the top 10 or 20 because of, what? regulations? >> the regulations how you move freight out of baltimore one basic example. you can't take hazardous materials through the tunnel and a whole host of things considered hazardous material.

batteries. a truckload of vodka that's a hazardous material. and so you have to take it over the bridge then you also, just navigating look how large some of these ships have gotten to be. especially with widening of the panama canal you're essentially trying to st stick a pig through a python in navigating it through that small area. >> so everybody else actually benefited while the port, the baltimore port actually lost market share >> absolutely. absolutely and you see new york, newark, norfolk, savannah, charleston. you know, miami. houston. all of these other ports, smaller ports, once smaller ports, now gained market share and blown right bast baltimore this only will aggravate that disparity and only make the market shift happen even more

dramatically. >> you actually have the sequence of events that transpired i hadn't seen this yet in your view, what happened? so -- >> take a look what happened take you back to the pig through a pie. t -- through a python. look what happened as the ship pulls up to, towards the opening, you see it loses power. when it regains power, you see a little later in the sequence it regains power you see a big plume, diesel smoke coming out of the stacks the captain has gone to a full reverse. a full stern move to try to push the, basically goes -- like throwing your car, going down the street and you throw your car in full reverse what he's

done that doesn't work. you see back of the boat squirrel to one side and then he loses power. essentially stalls it. comes back on tries again. what when he does this time, looks like thrown the anchor down so he knew he was in trouble, one. two, you have to understand that it wasn't just the captain on there. arbour master ensures to have someone from the local on there there was a local harbor person on the ship. they're helping the captain get through this, but what happens with their engines happens, you can't avoid what the ultimate collision that happened. unless you have tugs that's why you use tugs in many of these cases if there had been one even two just one tug. >> it wouldn't have happened. >> pulling this thing happened, this would have been completely avoided.

>> bottom line, your view, the industry is so dynamic now this will not have a big effect on the overall, on anything in the u.s. economy? >> yeah. we, when we deregulated transportation back with the act back in 1980, we invented a profession called distribution managers distribution managers are used to -- fork lift driver, used to be used to the fork lift driver showed up more sober than anybody else got promoted. now a reprofession with degrees and math skills, computer skills, people skills and they manage the supply chain. they, i guarantee you that yesterday morning soon as this became news they began re-routing shipments to and from other ports and plenty of other ports with plenty of capacity to handle it. it's a disaster for the baltimore port

it's obviously a disaster for the people of lost supplies, but for the other ports, they will be -- they will quickly be beneficiaries of -- of this calamity. >> you think it takes how long until the just back totally? the bridge >> oh, i have no, take time to rebuild that bridge. that's outside of my expertise. >> transportation -- >> transportation got that building a bridge, refer to someone else. >> there's a capsized boat carrying, ship carrying a bunch of autos down outside georgia that took years. took years to take it apart. took years to dredge it. it was unbelievable. out there the entire time. >> ship wrecks in all kinds of places we haven't touched for hurns of years. who know what's they end up doing here, but i just know that, one, the other parts are perfectly capable of handling

the capacity that professional distribution managers have already begun to make shifts and probably most importantly this was completely avoidable if they'd had a tug and tried to perform that take a pig through a python maneuver they obviously failed at. >> crazy trying to get that thing through. even going perfectly you have to be nervous you see how close -- >> that's oh, yeah one local person required onboard in these instances you know, the flows and eddies of the water, as tide's going out versus coming in all kind of pa c cue later moreo the left undertow, whatever it is i don't know exact, but i just know that's why you need somebody local. >> okay, don appreciate it. thank you. >> always a pleasure. >> okay. when we come back, the tiktok split

we've got new polling data on who in america supports a ban on the popular video app and who's against one. and some of america's biggest gaming companies looking to help curb the problem of gambling is this a p.r. stunt or a serious initiative we have that story nexwht en "squawk box" comes right back. this is our future, ma. godaddy airo. creates a logo, website, even social posts... in minutes! -how? -a.i. (impressed) ay i like it! who wants to come see the future?! get your business online in minutes

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welcome back to qb "squawk box. futures in the green all morning and looking at strong gains. dow futures indicated up over 160 points nasdaq up by 85 and s&p futures up by over 20 points also this morning we are reporting new results from the delivering alpha investor survey bringing together market intelligence of the market's leading instoonesal investors top strategists and very own cnbc contributors. in the last week we asked has

the market run too far, too fast more than 60% said, yes. we are in for a pullback 39% said, no the market will keep moving higher. >> all right top gaming companies making buying agreement to tackle problem gambling contessa brewer has the news >> joe, able to exclusively report this morning that seven of the nation's largest online gaming companies have committed to a first-of-its kind clearinghouse to share information on problem gambling and on problem players never done before. founding members, fanduel, draftkings, betmgm fanatics, harthark and bebet365 online betting in the united states seize shohei ohtani and mizzou

h mizzouhara meraking it difficult to turn a profit paul tonka is introducing international legislation concerned about the pervasive advertising and the impact especially on young people caesar's, noticeably absent from this group of online gambling association tells me they're confident in their own responsible gaming approach, relying on independent third-party verdictifications all better off to pull in the same direction, trying to ward off severe rules that could impede their businesses. this is one to watch. >> still wondering, contessa, that seems like if you want to find, like, the old characters

you used to think of when you think of gambling. they're still around aren't they? offshore can't you find -- people that will give you credit, take your bet. it's not regulated. >> you don't have to go offshore in california the scandal surrounding ohtani's interpreter has to do with an illegal bookie and a network that operated in las vegas some in southern california regulated books, guys gone and spent millions of dollars lobbying to try to get licence and to open new markets, look what happens if you don't have an option for legal gambling people will find a way around it. this is what we were seeing in california yeah illegal bookies still exist. the other question, though, is, if you're sharing information on problem gamblers, does that then mean that the problem gamblers themselves, if excluded from 85% of the legal sports books in the nation, just go off-line

in fact ceo of flutter, fanduel's parent ux told me yesterday what we need more enforcement. a crackdown on guys running illegal books. >> do you have, like, the initial stages of someone that could turn into a problem gambler? what would you describe the early signs, contessa? >> i have a colleague, a colleague who tends to work into every conversation so then i start to worry there may be indications of a problem. >> what if its $5 -- i know that individual what if it's $5 bets can a $5 bettor become a gambler? >> sometimes not the money you're losing but the mental energy it's taking up on your head i'm not a drand don't play one on tv. >> bad mood, lash out at family members. >> yes it's a problem interrupting other parts of your life, it's a problem.

>> those are the beginning signs. okay, contessa thank you. coming up, the fight over tiktok and a ban, can it past congress and plitolitical fallout, where would it land? a roundtable conversation lined up you're watching "squawk box" on cnbc.

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a handful of u.s. business lieders meeting today with china's president xi jinping qualcomm ceo and fedex ceo, all among those at the meeting, and gathering came a few days after china's annual development forum concluded in beijing and comes amid ongoing commercial and diplomatic tensions between china and the u.s. one of the latest developments, a report over the weekend that china will ban computer chips from intel and amd in government pcs and servers. >> stl eve liesman joins us onst from the all-america economic survey looking at tiktok today

whether seen as a security threat and whether americans want it banned steve, what's the -- >> very interesting, becky an issue that pits national security concerns against personal freedoms. majority of americans concerned about not international security but banning tiktok hold on. divisions along tech lines banned no matter what. 20%. 20% unless sold to a chinese company. 57% supporting a ban or sale 31% say, hands off my tiktok democrat split 40-38 favor of a ban. pretty well divided within the 3.1% margin of error republicans, 60-20 for the ban large percentage you don't see don't know enough to say those squibbs on the political lines are not the big thing. look at these. 31% all want a ban

18 to 34, 48 don't wan a ban 65 and older what is that thing, tiktok let it go. those who use tiktok the most, 53% of tiktok users shouldn't be banned including 67% daily users, don't touch my tiktok and 44 percent of those use it weekly or less others say take it away. biden struggling to hold his winning coalition together and already has a problem with the young vote over the israeli-hamas war. and 32% approval righting on biden average over the course of 9 president's average 40%. tick up for biden overall. back to the average of 40% not for the youth vote best outcome political perspective could be a sale. seamless to users but only could be beginning of a series of

issues, national security and national and social concerns against tech freedoms. young against old maybe? tech savvy against the not so savvy. not looking at you, joe, for any particular reason. >> and tiktok on your phone. you need my clock? what never been on it >> not sure who is -- >> i'm not sure you should ban it even though i don't know anything about it. >> shocked majority of people said, yes. 48% said shouldn't -- >> true. >> 50% said -- >> hold on look at that, becky. you know, you like, lick the wounds of wounded and get soft double check that. a large percent of undecideds. let me look at that. plurality put up have a conversation. i'll look at data. >> brings us to a very big debate takes place steve, the other thing i'll

throw out people think it should be banned how strongly do they feel that way versus the ones, no, it shouldn't be banned i guess those who feel more strongly the ones using it and don't want it taken away >> your cleverness gets better every day. didn't do this thing, called intensity gauge. didn't ask shue strongly you feel about this. a question hard enough to ask, had to do the pre-condition are you a tiktok user or not gets to be cumbersome. a great way to think about it. how intense are feelings on this >> people angry if you take their tiktok away a few more, bring them in on this voices on tiktok and effects of a possible for-sale or nationwide ban a cnbc contributor and josh tucker co-director of nyu's center for social media and politics and professor of politics at nyu and affiliated professor of data science. and director of nyu's jordan

center for advanced study of russia josh, what do you think? in tune with young people being at a university like this. what is your take on it? >> yeah. we know tiktok is enormously popular with younger users there is exactly this age discrepancy we've talked about here previously. the bigger question here is sort of like, what's the longer-term ramification, what will happen yes. younger voters upset about the fact tiktok is banned, if it was banned but whether or not that's likely to have any sort of implications on the election is an open question right? there are a couple reasons that may not be the case. one is that partisanship is really what drives people's voting behavior. we know about how 90% will vote in the 2024 election. >> they decide elections. >> very little that -- a small portion of the electorate up for grabs. also know a lot of different issues young people care about care about the economy

we also know that youth turnout increased in recent elections, but youth very much concerned with issues like abortion. when we ask a poll and ask people about tiktok, yes people tell us their opinions about tiktok and maybe very upset about it and very upset for good reasons but the junk from that, jump to actually effecting voting behavior is huge. >> joann, your point incredibly interesting. idea young people get information from tiktok everything they get is framed by tiktok >> right primary resource for news op gen z. all news getting about this legislation comes from tiktok. not only that, tiktok has been behind this mobilization we hear, gosh. this is outcry all repetitives getting spammed with all kind of calls and all kinds of protests from -- but that's because tiktok set it up. tiktok, go on tiktok, which i was just on tiktok

the primary video is from the ceo. the number one video on this legislation, and he's out there saying this will be a ban. talk to your senators. then these young people are getting notifications on their phones from tiktok that say, here's how to contact your representative give us your zip code. we're going to tell you how to do it. so what's so funny is, and i don't know if it's funny, it's ironic with the legislation, it's concerned about, what they're concerned about one of the issues is can tiktok manipulate voters here's sort of a great example i don't know whether you would want to call it motivation or manipulation in terms how they're doing this. >> sometimes members have a huge number of these calls coming in said it actually pushed them to think, yeah. definitely need to get rid of tiktok or at least have it in u.s.-owned hands. >> think about social media on elections think about a narrow

question about people's opinions about the tiktok ban how that might implement a vote are decision right? then a much larger question of how it is that we think the entire social media environment effects the way people vote and effects the voting process since we've had the rise of social media in this country we've seen so much political campaigning moved online and use of it by politicians and so this remains a sort of big open question people are trying to get answers to which is how does social media affect the impact of elections important to the keep them distinct much larger question of, information environment and how that's affecting people's vote how they get information about voting where they go to search for information. the point about people using tiktok essentially younger people using tiktok as a way older people use google is a fascinating question that's separate from the first question discussing which is whether anger over a proposed ban that almost undoubtedly would not go into effect before

the election and the way that this would roll out, of course, would be you wouldn't be able to get the app from the app store a sort of slow-moving period yeah. >> fascinated where we are in history. a lot of dots to connect in this tiktok ban looking at apple and google in europe now talking about a social media threat i don't know what a call joann has phrases. it ex-post tech book regulatory period trying to put together issues. we've created all of this "stuff" now how to we regulate it substantial issues about person freedoms out there and how far, what the government's role should be. a great segment yesterday, greg on about state capitalism. this is a piece of that question right? as sure as as we're out there deciding to subsidize chipmaking we're out there diseasing

whether or how much to regulate. joe, your point interesting's republicans generally skewing in favor of the ban, but you could make a really strong libertarian argument of, don't touch this stuff. not for you to do. by the way, once we start with tiktok, would we ban any user data to any chinese company? aren't their chinese companies gathering our data >> left or right, fractured. so many things you can do. >> and skewing -- >> got to -- maybe the hard-core religious right doesn't like what supposedly it's doing to our children and then you've got, they say libertarian right that thinks this is a private -- you know -- >> whatever's done in washington and nothing is -- >> legitimate concern for 51 to -- >> data, sharing, becky, quickly. 19% are either don't know or unsure so the plurality, 48 -- opposed

to the ban. >> withdraw my question. >> the question of regulation. i mean, one. things really distinct about tiktok is we are having this conversation what's happening on the platform from a very speculative standpoint do what joanna's doing, look at experience the whole thing disruptive about tiktok it doesn't deliver con thr tent does. a personal algorithm we're all seeing different things different things type of work we do at nyu social politics pull back and get much more broader views but don't know what's going on with tiktok because they're data is not available to us. all of these questions, going in

blind, regulatory stense, antitrust, other things. it has to be regulation allowing us to get access to this data xso we can understand what's going on in the platform so scholars like me and my lab can inform journalists, can inform policymakers when they go to think about regulation they know what's actual lg happening. >> i see it on tv. there's a nun using tiktok to help her students. haven't you seen that? >> yes tiktok commercials. >> it's really nice. >> they do other things. other stuff on there. >> josh, joann, steve, thank you guys very much. >> the father, son on -- >> terrible. look, there are good uses for social media and concerns uses you're right we don't know what they're doing. >> and nyu professors confused thinking about there's actual information to mike a -- coming up, the tech giants need for home-grown, super customized chips

kristina partsinevelos is next preview? don't say, no. >> joe, talking about tiktok behind tiktok power of all of these chips fpi aye chip race is on and includes an in-house chip lab like this one at aws with all of these smart people. after the break, i look how yi te mega cap players are trngo three throne nvidia and how long it will take. that next. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪) you know what's brilliant? boring. think about it.

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nvidia got much of the a.i. chip demand attention lately as companies scale up their next generation capability, but america's tech giants are also looking inward for their next leg up kristina partsinevelos joins us now with more. hey, kristina. >> you have short supply, high costs that are causing a lot of mega cap companies to create their own in-house chip centers like this one, and they're also realizing they're maybe a little reliant on nvidia as well, which is why i came to aws labs, surrounded by people programming and checking the data of their chips to learn more about how

the competition stacks up. amazon has been working on their chips for 11 years or so, and yet, they still have to buy chips from nvidia. listen in. >> it also means bringing the very best intel, amd, nvidia, whatever the partner might be, to aws for customer workloads that might need those chips. it's not just an approach that says, hey, we want everything on our own silicon. it says, we want to give customers the best choice. >> the best choice and offer the cheaper alternative, which is a major selling point for a lot of these custom silicon offerings from companies like amazon, meta, google openai is said to be working on it as well but it's not easy to compete, and at least six researchers from universities discovered a security flaw in apple's custom chips, which would reveal secret encryption keys. separately, apple was working on a chip for their smartphones but

didn't get it right, so they had to sign on with qualcomm for another three years. microsoft has been working on chips for years and only just recently launched their custom in-house a.i. chips to the public it is definitely not easy, and the a.i. boom is showcasing how reliant companies have become on the likes of nvidia. so, for now, they're going to just have to maintain that ambulancing act of being nvidia customers and competitors as they pour billions of dollars into building their own in-house chip worlds. >> it would have to be -- you really be a major decision to decide to embark upon that instead of, you know, just contracting it out to the absolute experts in the field that have been doing it for whatever 20 years. there must be -- you must have a really good reason to do it, but i guess you could say that amazon didn't need to start aws. it could have just kept delivering books so, you know -- >> well, yeah, to your point, joe, there's two reasons

there's the cost, right? you've seen openai throw out that $7 billion number to create a foundation and eventually build in-house chips obviously, that's an extremely high number, but overall, they realized the cost benefits when i speak to the executives, they always say, it's about offering our customers the best option, the most power-efficient option, but of course, it boils down to cost, and when they build it in-house, they do see later on, it's going to be a lot cheaper for them to keep everything in-house as opposed to relying on a third party. >> okay, kristina. they're not going to be -- we're not going to have a "squawk" check. there's no way >> no. >> i wouldn't know where to start. >> jensen huang. >> yeah. when we come back, we're going to talk markets and get you ready for the trading day ahead. ♪♪ hello, mia. are you ready to meet your demise? man, we really need to upgrade your trash talk. ♪♪

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from the delivering alpha investor survey, we asked leading institutional investors, top strategists and our own cnbc contributors what they think the to be sectors will be this year. more than 60% said tech. financials got almost as much support. joining us now, meagan hornman,

cio at verdance capital advisors one other part of the survey was the market's gone too far too fast what do you think? >> i would agree with that i think if you look at any valuation metrics, even some of the technical metrics that we look at, it's showing that the s&p 500 itself, special the growth side of it, has gone very far very fast, and i think right now, it's kind of stuck in this window where you could say, what's going to be the big next catalyst that's going to keep this and support these high valuations and the rally we've seen thus far? >> you could almost see that every advance, and they're happening quicker and quicker with a.i., that every sort of quantum leap that we make could add fuel to the -- i mean, you could make a case for that, couldn't you >> that's what i think people are using as the justification for bidding up these stocks and following this momentum up, but eventually, we're going to have to see some of these results be

a positive in earnings and we haven't necessarily seen that yet earnings season will start in a couple weeks, so we'll get more information then, but i just don't think where we are from a valuation perspective that this warrants these elevated valuations it's simply a momentum trade to us right now >> we got a little bit of a late start, so i'll just ask you one more question. what would you rather have would you rather have the economy stay solid or would you rather have a little bit of weakness to get some rate cuts down the road? what would be more important for you for the market >> i'd like to see some weakness, specifically in the market, because i'd like to view that as a buying opportunity also in the economy, because i'm still concerned about inflation, and i think for the rest of this year, inflation could be choppy, and if we get some weakness in the economy, we get the weak nes in the market, this could bring the fed in, comfortable to cut rates, and we could bring that inflation down >> it's the ultimate paradox

you don't know whether to hope for a great economy or a so-so economy, because the fed's always in the back of your mind. thanks, megan. appreciate it this morning we are going to take a quick look solid gains indicated for today, which is wednesday, but really, like a thursday. we'll be here tomorrow, which is like a friday, because we're off friday make sure you join us tomorrow "squawk on the street" is next ♪ good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer at post nine of the new york stock exchange. david faber has the morning off. bulls will try again to snap this losing streak, now extended to three days. tons of movers in pharma, autos, retail, and media, and don't forget fed governor waller after the bell onight. our road map begins with stocks looking to bounce after that late-day decline for the s&p and nasdaq yesterday china, courting u.s. business