it's wednesday, may 1st, 2024, and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" right here on cnbc. we are live from the nasdaq market site in time square. i'm becky quick along with joe kernen and andrew ross sorkin. let's take a look at the futures. you're not seeing any rebound this morning. dow futures indicated off another 85 points. the nasdaq down by 120 points. of course, that comes after a selloff for stocks yesterday with the dow down by 75 points or 1.5%. the s&p was also off by 1.5% and the nasdaq down by 2%. then you take a look at treasury yields. this tells you a little bit about the expectations of what's

to come next from the fed. no signs of relief with the 10-year still at 469. the 2-year at 5%. we saw that yesterday morning on the hot data that was hotzer than had been anticipated. price of bitcoin down substantially, just holding at 57,000. and then gold prices were down by 2.3% yesterday. they'd been hitting new highs, this morning sitting above $2,300 an ounce. then you have crude oil prices with continued concerns in the middle east. at this point, down by almost 2% as well. maybe that leads to questions about what the global demand is. $80 $.39 a barrel. police cleared an occupied building. columbia's president has asked the nypd to maintain a presence until may 17th to prevent

further encampments or okay pages. it was extraordinary just to watch the police going in there, taking these kids out, protesters on all ends of it. it's unbelievable. i know, obviously this is spreading across the country. >> it happened a little earlier in florida. it didn't seem quite as jarring for some reason. i didn't realize hamilton hall was the same building in the '60s. same building that these protesters -- >> they were doing that intentionally. >> well, the dnc's in the same city. >> in chicago. >> in chicago. and from the biden administration this morning, approving $6.1 billion in student debt cancellation for 317,000 borrowers who attended the art institutes. the department of investigation deceived students about the

value they would be receiving from their education. advertised inflated employment rates and prospective salaries. i'm shocked. i'm shocked. my art history degree hasn't gotten me a $200,000 a year job. as a result, they cheated borrowers who took on mountains of debt for not leading to promising career opportunities. campuses were sold by their parent company in 2017 and shut down by new owners last year. eligible borrowers will have their debt dischargedwithout taking further action. okay. meantime, this is remarkable to watch. i was listening to the analysts call last night. shares of starbucks plunging. earnings of 68 cents a share. revenue, $8.6 billion. that missed estimates of $9.1

billion. same store sales fell 3%. the company reporting pure weather and fewer customer visits in the u.s. china found 11%. the recovery there was choppier than expected. the company cut its full year forecast. but just to put a point on where we are, about $10 billion were shaved off the company's market cap last night based on where we're going to go. when laxman took over from schultz, $30 billion has disappeared from the value of this company. you'd be hard-pressed to find that kind of shift in anything but a technology company. it's hard to understand how much of this is an indication of what's going on in the broader economy and consumers stepping down from one product to

another. we saw what was going on with mcdonald's. >> it didn't happen with chipotle. they've been able to -- >> chipotle levitates above everything. we're talking about inflation. i would argue to you that part of the problem as starbucks is they actually raised prices too high. remember when everyone said we've got to raise prices, the prices now -- i don't know how you feel about it. they were always high. >> they didn't need to raise it. >> no, i think they did need to raise them at some point. the question is did they raise them too high and what do you u do to keep up this kind of growth? i think there's going to be a big test for lax man to figure out what's next. he talked about a lot of opportunities both in terms of trying to get more afternoon traffic. they have a very interesting han the morning. you goest to most starbucks, the

lines are too long. no problem in the morning. pricing is everything. come the afternoon, they're running all sorts of loyalty things on the app to get people to show up. weekend, they're talking about opportunities to do overnight delivery for folks who want to get access to starbucks, people who work in hospitals and doing overnight shifts. so there might be all sorts of opportunities. he talks about a $2 billion opportunity. it's an interesting microcosm. >> the chart doesn't look that incredible to me. it was 128. it's going to be 70 or 80. stocks, i guess, your position in the past is they're a great store of value as opposed to some other things. they move around. they may be -- it may be valued at $100 billion one day. six months ago it might have been $130 billion. it's not just technology stocks.

you can find many, many stocks that have highs and lows that are 100% different that are low because it's the nature of the market. look how far target has phenomenon f you've been watching stocks for years. netflix was a technology stock. that went from 700 to 200. disney weblts from disney. media conglomerate brand name of all brand names went from over 200. they have many, many moves. >> it would be the biggest drop. you can see the chart when they started shutting down the stores. >> i'm amazed. still a $100 billion market. >> it's got the opposite problem of is many other fast food places which all the other lunch and dinner places used to figure out how go make breakfast. they're trying to figure out the opposite problem. which it could be interesting if

they could find a way to lure people in. >> could they get gen z people in there. that's the other thing that's so interesting. they're talking about again z a 1 energy drinks. they want teas, colds, iced drinkses, iced coffee is one part of that. but they're developing other kinds of products. it's going to be very interesting to watch. let's check out shares of micro devices. you had revenue in line with estimates, and then the chipmaker gave a disappointing forecast. amd says they'll generate $4 billion up from an earlier prediction of $3.5 million, but some investors had been calling for a figure as high as $8 billion. the supply constraints should ease later this year, but will

have an impact in the current quarter. as a result, you can see the stock down by 6.7%. shares of super micro are tumbling too. earnings beat estimates and revenue jumped by 200% year over year. that was still shy of analysts' expectations. they raised the guidance above the street's estimates and now imply revenue growth of 582% could be coming in. before today's decline, the stock was up by 205%. this morning it's giving back 7%. >> okay. meantime shares of cannabis related companies jumping after the u.s. drug enforcement administration taking a step toward reclassifying marijuana to a less dangerous drug category. cannabis growing as much as 75%. marijuana has now been classified with lsd and heroin. they could move it to a schedule 3 classification with drugs like

tylenol with codeine. steroids and testosterone. it would move the tacks they would have to play. any rule change would take months after the proposal has been published. there's a 60-day public comment period. and then it would be reviewed by an administrative law judge. my only comment is take a wake around new york city. it's a different issue. there's sort of a larger societal question though. >> it is a societal question. i'm not convinced it's so great. >> me neither, and the access it gives to younger kids under the age of 18 who have a much easier time finding it. >> it's not heroin, but it's like testostestosterone.

>> it could lead you to some type of opioid addiction. then, again, i don't think -- it's not heroin, but i'm not sure it's way down here either. it can be its own problem for kids. >> and if you're walking -- look, when your brain is still developing, it's a big issue for that. we all walk up and down the streets of new york and you smell it everywhere. >> you get high on -- that and being on tv and everything else, right? i think our brains are always developing. my brain is developing this way now. >> in reverse? >> yeah. well, you'll see. coming up, shares of am don -- what about prevadin? is that a real thing? >> i don't know. i just play a doctor on tv. >> did you used to know and forget?

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i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right.

he gets it. yeah.

significant momentum and seeing people trying to run their generative ai. there's a multiple run rate and it's still early in the days.

>> that was amazon's ceo andy jassy on the earnings call yesterday. the numbers in a quarter are mind-boggling. $143 billion in sales. and a lot of that -- that's a lot of books. they're doing more than selling books. have i got that right, doug? they've branched out a bit? but a lot of it is a resurgence at aws. >> it is. and, joe, they do do more than just books now. $25 billion of the 100 plus that you talk about came from advertising. $25 billion came from aws. so they have a really diverse business now that is driving incredible profit, 10% operating margins. we haven't seen those operating margins at amazon in quite a while. you look at the guide. it was conservative. amazon tends to be conservative. i'm not surprised that the stock is, let's call it close to flat

now. wouldn't have even been surprised that the stock was down a little bit, given the report. i think the headline to me was just like meta, just like alphabet, and just like microsoft, amazon talked about a big capex build coming up for 2024 as they invest into this ai opportunity that all the big hyperscalers see. >> see that? the a.i. business is rivalling the businesses you're talking about. were they behind initially? >> i think they were behind relative to google and microsoft in particular. obviously those are the two direct cloud competitors they're up against. microsoft has openai. google has their own gemini model, and amazon has been figuring out how do we fit into this ecosystem without having a meaningful -- they do have their

own large language models, but without having a real meaningful competitor. but i think they've done a good job with bedrock, sage maker. those are two of the core products they offer now in terms of ai services and managemented services to companies that are building models off aws and hosting it on aws. i think they see just as big an opportunity going forward as microsoft and google do. and so they're going to spend $60 billion likely given their commentary on the call. >> even if it wasn't in-house ai development, they sell to other ai companies. aws is a place where you go for your ai capabilities. >> it is. you can access a number of models from third parties that amazon has partnered with. so anthropic is probably the headline model that they talk about. they referenced it in their

earnings note. they talked about anthropic on the call. and amazon is an investment. you can access other open source models. they have kind of a large array, wide menu of options you can go through. >> it begs a durcht question. they're working -- i tried to ask andy a little but about it when i saw him during that interview we did about a month ago now aboutolympus, which is their effort to create a large-scale model which is consistent to chatgpt. given the way you've just framed it, this is the place people will come to for ai, do you think people need to invest in their own large language model and do all the models need to become commoditized? >> i think what ends up

happening in the model wars, we have three to five that survive. i would put amazon on the outside of being one of those three to five. the issue that amazon will ultimately have is if you think about what causes a company to have a great model it's data, infrastructure, and distribution. amazon certainly has the infrastructure with aws. they have distribution with the customers have use their products. i don't think they have the same at of data that meta has or google has that's on par. so if i'm amazon, am i going to continue to invest in a model? probably because i think everyone feel like they need to be skparming here, even if just to understand the market, how these models function. but i wouldn't expect them to be a major player in the model wars if i look out three to five

years as an investor. >> that's pretty comprehensive, doug. we appreciate it. thank you. >> thank you. >> okay. when we come back, viking holdings pricing its ipo at the high end. we've got the details after the break. by the way, this saturday is the berkshire hathaway meeting. warren buffett will be taking the stage in omaha and will be holding questions for five hours. you can see it here on cnbc.com and streaming on cnbc.com. that's saturday, 9:30 eastern time. cnbc and cnbc.com. we'll be right back.

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welcome back to "squawk box." viking holdings at $24. the founder and ceo will control the company with his daughter, exercising 87% of the company's voting power. tl company operates 92 cruise vessels around the world. the stock is expected to be trading today. the tick, vik. when we return, a lot more on "squawk box." the billionaire investor behind paul mitchell's hair products, he's going to talk about his new ai venture. that's straight ahead. as we head to the break, a look at s&p 500 winners and losers.

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back to "squawk box" live from market site at times square. remember when we had the pullback and it looked like -- and a lot of people that we had on said -- it's acting a little bit deader. it eat going to be interesting what the fed comes up with. i don't want jay powell to say everything's on track, getting closer. i don't think -- if they're data-dependent, the data has changed. >> there's a story on bloomberg that says there's a look at a wide spring and it could be the

biggest fed day move since 2023. >> i think we went from -- we thought it was transitory to, oh, know, this is not transitory to, you know what? most of it was supply chain and now it's trending in the right direction. now i'm back to thinking the debt is too much. we spent too much money, and maybe it really is more ingrained, which could mean -- jim grant -- do you know what 200 points of additional increases is? that's 825-point hikes, not cuts. basis points. >> tell me where mortgage rates are, credit card payments are, your car loan payments are on all of those things. >> 1.7% gdp starts looking good. >> it does. hey, we've got breaking news out from johnson & johnson right now. the company is announcing a new reorganization plan for its llt management unit. that was a subsidiary that was

going to hold all the legal claims related to the company's t talcum products. there are claims talcum is responsible for ovarian cancer. they say there are some interesting things happening here. this is different from the last proposal that was put foorkt that was shot down by some of the lawyers that were involved. this time the company is trying to go to the claim manhattans themselves, the people who have been affected by this and impacted by it and asking them for a vote on the plan. underneath the plan, it would behbe 6.476% set for it. the expectations from what i hear are that it would be somewhere around $50 to $250,000 per claim management. you never know what happens with this because of the age, the

disease stage and how many claims are going to be in that. johnson & johnson also saying they're setting aside an $11 billion reserve that would be something that the street's been trying to figure out not just for the ovarian talc claims. they say 95% of the mees oh theee oh ma claims have been resome offed and settled. the ongoing bankruptcy situation they've had from their talc supplier emir sis, that has been resolved. $11 billion would be set aside for this. this is not a done deal. it's a plan the company is putting forward. they tenltd to believe there are a few lawyers who would like to see the litigation continue, that they've been making money on this. if they take it directly to the claim managements and get 75% to vote in favor of that, they would take it to the bankruptcy judge. 75% is the threshold that exists

in bankruptcy law that they would be looking at very carefully in terms of some of the issues. if they were to do it, they would tiez it. they have to figure out if they have 75% of the voters in favre of this package. stock is up by 71 cents, but those talcum powder questions about ovarian cancer have hung over. the company has been litigating this for 11 years. they've won 16 of the last 17 trials involved in this, but it's a slow process. it's been a big cloud. we'll see what happens with this. that stock up by 41 cents. meantime cvs health issuing its quarterly results. it's well below the consensus estimate.

cvs is cutting its full year guidance the company says it's feeling the rise of medical costs. you've looking at stocks off by about 10%. >> that's a new low. that stock -- if we had a longer term stock, you would see it. you've got to go back to 2020 to see the stock -- >> yeah. >> rising costs and medical costs. which is getting into the -- >> i don't know. i don't know. >> no, i'm just looking -- >> it's the weather -- yeah, medical costs are rising. we know that. >> it brings up the question of trying to bring it in. >> we've got to figurehe store,. >> that's a lot. i-bonds were all the rage. now the bonds have lost their

luster. the treasury department reset the rate today and sharon epperson joins us with more on that. >> series i savings bonds, that adjusted with inflation. and they announced the new composite at now 4.28%. that includes a fixed rate of 1.30% and annualized rate of 2.98%. federal taxes are deferred as long as you hold the bond. they're exempt from state and federal tacks as well. in comparison, savings accounts are also a safe place for your cash. you can with draw your money at any time. so if you rush to get the 9.62% i-bonds at their peak in 2022, the fixed rate was zero. now they're earning less than one third they did back then. so what should you do now? >> i would sell them now because

the fixed rate on that may 2022 i-bond is zero percent. so you'll only be making in the next six months, annualized 2.98%. you're not going to get that 4.28%. >> that may be a consideration for short-term savers, but they say the fixed rate may be attractive to long-term investors. you can read more online, becky. coming up, we're going to talk about the race to the white house with axios's jim vandehei. he's got a new book out. that's next.

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your turn. (hose spraying and laughter) find all these american made gifts, perfect for mother's day, at wt.com . welcome back to "squawk box." our next guest is jim vandehei. he's written a new book. it's out this week. it's titled "just the good stuff." it's a whole number of lessons in life you learned that you're trying to pass on. i'll ask you about that. but i want to ask you about d.c. in particular, this "time" magazine interview that trump just gave you said is one of the most important interviews you said is out there that we can take something away from. it's long, that interview. >> it was long. >> i'm curious. what was the nugget or sentence or two or three that you said to yourself, that is something

we're supposed to focus on? >> one, we have two candidates who are operating like they're in the witness protection program and getting a ton of scrutiny. and it's like what are you going to do when you actually govern. for trump, he said the quiet part out loud. what people are not paying attention to in the noise is he has very substantial plans for governance, and it's a lot different from what we're used to, a lot different than the first term. we've done a lot of reporting on it. he said, hey, listen, i'm going to use the military or national guard to quell protests or deport people who are here illegally. i'm going to get rid of people in the justice department who don't agree with me. very significantly, we e know from h his staff and from the outside, that i want to get rid of potentially tens of thousands of civil servants who he feels weren't loyal enough to him last time. on the outside you have the

national heritage foundation putting together a lot of work to make sure that functions that way. if you look at the first term, he was hamstrung by the fact people weren't loyal to him and didn't want to carry out his wishes. if he has a government that carries out his wishes, he's going to be able to do a hello of a lot more in this term than the last term. >> he was ham strung. that was before he even won they had a plan to disrupt and, i don't know, there were obstacles from day one for everything. >> including from him. he appointed a lot of people. that's what he wants to do. in that interview, he's pretty candid. he's hard when he interviews because he's all over the place, but he was candid that would stretch the norms. a lot of republicans like it. it's great. but now it's detailed. >> what will the impact be on business leaders that you talk

to about those types of things? >> i think there's a real divide as you've seen on your own show. people are going to think they're going to get better taxes and regulation, but the trade-off is a lot more volatility and unpredictability. i don't think businesses are thrilled with what they've seen from biden, the amount of spending, the threats to raise the capital gains rates. there's a real divide. there's a reason that president biden is sending treasury secretary yelin out to arizona to warn about the attacks on democracy because they feel like that, not the issues, is what would get him reelected, biden, i'm talking about. they feel like for whatever reason, people don't like what he's selling in terms of the policies he's had and they're like, hey -- >> instead of just altering the policies nobody likes, just --

>> doubling down. >> if you look at what he promised to do, he did a lot policy-wise. et it just turns out the public doesn't like it. and you've seen it in the ratings since the day he took office. so he has to figure out something. >> what is it that you think from all that they've done that the public doesn't like? is it the policies? is it the age issue? is it the inflation piece of the economy? what is it that people say -- when you say people don't like the policies, what do you think -- what are you referring to specifically? >> i think you're probably -- again, like it's hard to know because we're talking about 330 million people, but i think it's a combination of people are very uncomfortable with his age. he looks old, he often sounds old, and in polls democrats hate it too. he's old at the end of this

term. you couple that with inflation and some bit of nostalgia. people look back at trump and say, he might are have said crazy things but my taxes were lower and i was making more money. in some cases that's true. in some cases not. but in poll after poll after poll, people feel there was more success under trump than biden, you see why the white house getting worried and say, okay, we have to figure o it a different juxtaposition. stability versus crazy. that's what they're trying to say over and ore and ore. that's why you have the treasure secretary weighing into politics. >> it's the way your weekly budget is measuring up to what you make is below when you took office. >> yeah. >> using the 3% and your wage

gains have not kept pace with inflation, you feel strapped. you don't feel better off than you did three years ago. >> so take your things. where is biden losing support? put aside young people because they don't really vote. they're really worried about black men and hispanic men, especially the working class. they've been moving to the republican party over the last four years and that's who's getting hit hardest are working-class people by inflation. therefore you can extrapolate inflation is probably a bigger deal than we realize. >> i want to talk about this book. there are a whole bunch of things i'm fascinated by. they're life lessons you're trying to teach. one of them is this. you're saying study thyself. be clear-eyed about gifts and flaws. it's the only path to betterment. >> yep. >> how many people do you know who are not that introspective, who have no idea what their

gifts and flaws are, and how do you help those people figure it out? what do you tell them? >> most don't. i started with politico and axios. i was a reporter before that. i took a lot of notes. one of the things i just realized is who has success and not is one question. are you doing any introspection? what are you good at? what are you not good at? how do you spend your day? how do you surround yourself with people? what about a jerk, do you keep them in your life? how do you fire people. do you u do it with grace or are you a real jerk? i made fun of myself in the book because i had to learn to be a ceo. in the beginning, hiring, firing, strategic decisions, culture, i screwed it all up, but i do do a lot of intro vengs. in many ways the book is me

being a vessel. if you're a manager and you want to be a bitter manager here are a bunch of tips and chicks that are actionable. if you're a kre eo and want to help the young generation, who are some things. if you want to get ahead and not be a jirk, there are a lot of things that are helpful. >> many watching complain with trying to deal with younger people in their office. what is the single trick you'd give them? >> stop rolling your eyes and wining about it. it is what it is. most of your work force happens to be under 40. they're not motivated by what we were motivated for. we wanted a paycheck and for the boss not to hit us. they want purpose and meaning. every job has meaning and purpose. they treat their employees well. emphasize the hell out of that and you'll get as much

productivity as you got from us. but if you resist it or pretend it's not there, you're only going to suffer. there are only so many things i see ceos talk about. i'm going to make them come back five days a week and they will. really, you're going to not compete for the talent because you want them in the officer single day? strikes me as crazy. >> i ooh p going to send you to lunch with jamie diamond. the book is called "just the good stuff." congratulations on the book. mike allen who is your partner in crime joins you offstage this morning. >> thank you. when we come back, billionaire investor john paul dejoria is behind big plans. he'll join us next on his new ai venture.

dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right?

earnings just in from pfizer. there's another one,actually, andrew, if you want to look at something that is not really looking too good to shareholders. what is that? 40? and now we're about almost 26. >> people like that news at least today on a relative basis. >> it is up 88 cents. drugmaker reporting adjusted profit of 82 cents a share. well above the consensus estimate of 52 cents. i think we should actually, when it is not adjusted, i think we should say the reporting profit that is not adjusted.

>> yes, agree. >> every single time, it is adjusted. it doesn't add anything to -- revenue also came in above wall street forecasts. results helped by cost cuts and strong growth and rsv vaccine sales and comps are getting easier at pfizer. the real trouble came after they spent -- did they not go into weight loss and instead stuck with the vaccines and therapeutics for covid. coming up, billionaire investor john paul dejoria joins us next on his new a.i. venture. "squawk box" will be right back. and mocked your ambition. but it's not the critic who counts, and you know that. from the beginning, you couldn't be stopped. ♪♪ breaking resistance with every swing and block. ♪♪ your game plan never changed. ♪♪

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welcome back, everybody. retail returns have surged since the pandemic. and the items often end up staying on the shelves or ending up in a landfill. joining us right now to talk about his new venture into a.i. that tries to tackle that problem is john paul dejoria, the founder of petron and co-founder of john paul mitchell

systems. a lot of other things he's working on. thank you for coming in. and it is really interesting what you're working on right now. talk about this. >> it is my pleasure. no one even knew it existed, eight years ago i invested in a company called renew logics. we would take them in, disassemble, take out the parts that are valuable and get rid of the remains. companies love this. a few years ago, gary stevens, who is in that company, heading it up, came up with a brilliant idea of what the industry needs, it is a big industry, is a way to go from b to b, for example, retailer gets returns, but better yet a manufacturer has more things they want to sell out. we have an a.i. we put together, our platform, where it goes directly from, for example, the manufacturer to the end user. to them -- little places that

buy it opposed going from the company to another group to another group and finally it gets there. it goes direct. it is a new way of distribution. >> how does it figure that out? >> we figured it out, it took us many years, cost me a few million dollars to do, we had to figure out who the end user is, which we knew through renew logics. we have all of that down. >> i remember returns being a massive problem in the catalog industry 25 years ago, 15 to 25% of everything that was purchased would get shipped back. how does that rate out with online purchases? >> today, it is about one in six that are returned. so what happens is this, when that happens, whoever has it loses money, one of the bigger companies loses hundreds of millions of dollars a year in returned goods. they get it, have to sell it to this warehouse, that warehouse, who sells it to the other users and it finally gets to the public. i didn't realize this, this business we're talking about right now, about four years ago was over 300 million -- billion

a year. last year, $800 billion a year. this next 12 months, it will be over a trillion dollars. that is bigger than the cosmetics industry and the alcohol business put together. so, we have a way of making efficient, a way to make it ecological, so there isn't waste and takes something that was a loss company and gives them profit. >> who are your target clients? the amazons of the world, the walmarts? >> it is actually everybody, but nobody has the same a.i. they have it to go to various places. we're the only one that connects it all together right now. and the ones you're talking about right now, more than half of who you just mentioned are already with our people, instigating our program. >> so who are you working with? walmart or amazon? i only mentioned two. >> there is others too. there is others too. >> you're talking about a big market. >> we're working with them right now. very, very big market. just one of the clients that came to us has a problem with $8

billion a year and they made us their exclusive person to help them move it out. >> okay. that's fascinating. you're also sitting here with some alcohol in front of you. and we know that you are petron, your brand, sold it, it has been five years. >> it has. a little over five years, bacardi, wonderful company, they bought petron, i developed another tequila. the other tequila that i co-founded with somebody was not a petron product. it is a next generation. they were kind enough, since it wasn't on the market yet, to let me give it to my daughters for $10 and not touch it or put any money into it for a period of five years. my noncompete was up this last year. it is bandero, zero additives in it whatsoever, made the old-fashioned way, one of the smoothest tequilas ever made and recycled glass, even the leather on here, which looks like leather, feels like leather, smells like leather, even the

leather is not real leather. we found a way to make leather so it looks and feels like it, but it isn't. and this is our tequila. and, of course, our bandero and this is our coffee one, this tequila, not just regular tequila, but tequila with coffee in it. this is our bandero cafe. >> i never heard of tequila in coffee before. >> you can make it with coffee. >> this is different. >> the "squawk" audience right now, come on. >> one thing good about things like what i'm doing is most people know out there, i came from living in my car and homeless a couple of times, america is still good. america gives everyone an opportunity, still, with all the problems we have, all the political disputes, whatever is going on there, america still works for the people. it is still the land of opportunity. and even though i've done it before, it is easier this time.

there is little people around me i started in business over the last several years that are doing really, really well, good entrepreneurs. >> that's good to hear john paul, thank you the brand is bandero always a pleasure talking to you. it is just past 7:00 a.m. on the east coast you're watching "squawk box" here on cnbc i'm andrew ross sorkin with joe kernen and becky quick we got a lot of news to take you through, top news right at this moment, the biden administration approving $6.1 billion in student debt cancellation for 317,000 borrowers who attended the art institutes they will have their debt discharged without taking further action a big ipo set to sail down wall street, viking holdings pricing shares at $24, high end of the expected range the cruise operator raising $1.5 billion making it the second largest u.s. ipo this year former president trump raising his stake in the parent company of his truth social app to

nearly 65% s.e.c. filing showing that trump secured 36 million shares of trump media technology group through an earn out bonus. stock surged more than 50% just in the past week, but still down more than 25% in total from its peak at the end of march let's check the futures this morning. even after yesterday's steep declines for the markets, 1.5% losses for both the dow and the s&p 500. 2% loss for the nasdaq you're not seeing any rebound this morning dow futures off just about triple digits now. the nasdaq down by 105 and the s&p is down by about 21. let's get over to contessa brewer with a look at some of this morning's premarket movers. what are you seeing? >> cvs shares plummeting this morning. in the last half hour, it reported earnings and revenue that missed expectations and it slashed guidance for the full year and look at those shares now, down by nearly 12% in the free market. the company got hit by investment and expanding its medicare advantage plans at a

time when medical costs are rising ceo karen lynch calls it an earnings release, a near term challenge and says cvs health has a plan to deal with it super micro shares down sharply in the premarket, down by 12%. a revenue miss in the third quarter, despite the recent move there is a lot to like about the stock. if you look at that performance, over the past year, the company boosted its current quarter revenue guidance and said it expects a.i. demand to remain strong for many quarters over one year, up 618% amazon shares in the green, in the wake of yesterday's earnings report, the company beat on the top and the bottom line, and posted a 24% growth in ad revenue in the quarter cost cutting measures over the past few years including layoffs have helped amazon stabilize spending, contributed to a record high operating margin for the quarter. those shares up 2% in the premarket, and over the last year up 75%. becky?

>> contessa, thank you very much we'll check in with you a little bit later. investors are bracing for another busy day of earnings they're also looking ahead to that fed rate decision that comes as well this week. joining us right now is sylvia jablonski. i was thinking really it was the earnings that were going to be all important, but based on the data that we got yesterday, that fed decision is starting to loom a lot larger >> yeah, good morning, becky i would agree with that. i think there is a lot of uncertainty and nervousness in the market in terms of what the fed is going to say today about the future path of rate cuts now the market is pricing in basically one cut around november and, you know, as we know, we came into this expecting a lot more than that i think three was the lowest number we had, you know, first couple of months into the year so if the fed turns out to be hawkish again and talks about the potentially no rate cuts or rate hikes, then, you know, we're going to have a lot of potential pullback in the

market i don't expect that to happen, though if anything, i think he'll level off and keep a neutral tone today. >> the bigger issue is what is causing the fed to feel that way. inflation is much more persistent and stronger than anybody had been guessing. that's the type of thing that causes lots of panic and the potential for people to say, this is not the year we thought we were going to get >> yeah. and if you look at the data, cpi was too hot, jobs were a little too hot, manufacturing came in well, and that's certainly worrisome for the fed. so, you know, i think there are a few data points that are going to come in through the rest of the year, which will lead them to their decision in terms of whether to cut or not. it really has been a couple of blips, inflation has been downward trending and we really need a few more months to sus that out and see if that's the case but, to your point, if we don't see that happening, and we continue to get hotter reads, you know, particularly with geopolitics in the background and oil prices and things like this, then we might be holding at this level for a little bit

longer and that might put the pressure on stocks. >> what is your decision right now at least what do you see happening over the rest of the year is this a time to sit pat? is this a time to go ahead and buy in while the other people look a little nervous? >> i'm always a buyer when people are nervous 2022 was a big a.i. gathering year for me and i think this year i'm thinking about, you know, what's the next a.i. and that's going to come in the form of quantum computing all the mag seven stocks that are reporting, i shouldn't say all of them, but the microsofts, google, they're winning on the a.i. trade, showing some momentum there and then on top of that, they're going to be part of the new quantium computing innovation so you get pullback from the tech stocks and i consistently dollar cost average to these stocks over time and hold on to them forever so, that's my plan this last month was a good asset gathering month in that sense. diversification. you look at the weight loss

drugs, healthcare pays nice dividends, seeing nice revenues, eli lilly, things like this, it is good to have different diversifiers in your portfolio as well. >> thank you >> thank you coming up, the ceo of mongo db joins us. the company update, thoughts on the a.i. revolution, plus a street reaction to pfizer and cvs results. those stocks right now are headed in the opposite direction. cvs quite a bit of an opposite there, almost 12%. we'll be right back.

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including the chicago tribune and the new york daily news is

suing microsoft and openai the papers accuse the tech companies of illegally using reporters' work and millions of copy righted articles to create their generative a.i. products, including openai's chatgpt and microsoft's co-pilot and mongodb is announcing the launch of its new a.i. applications program this is an issue bringing together major players in the a.i. industry to assist other companies in integrating generative a.i. into their applications they're not alone. other companies are partnering with a.i. technology to enhance their business amazon recently announced the publicly availability of their a.i. powered assistant called q. joining us is dev ittycheria, mongodb's president and ceo. nice to see you. >> great to be here, thank you. >> we were just talking off camera about the different models this is about in some ways integrating with various models. right now, how do you stack rank the various models out there and what is happening? >> well, right now, i would say facebook has come out with a

very impressive version with lama 3 the performance benchmarks seem impressive it is open source. moreover, they basically committed to investing somewhere between 35 to $40 billion a year to continue to innovate and build new models they're working on a higher performance model. so it is kind of -- >> there is a view this could completely and utterly undermine all of these paid closed models, which is to say if lama 3 is as close as people are saying to whatever you think, you know, chatgpt 4 looks like today, or amazon working on olympus or gemini, then what? >> i think this is the problem customers have, because they feel overwhelmed every week there is a new m announcement there is rumors that gpt 5 is around the corner. everybody is waiting for what is going to come. the whole point of the program is to address customers feeling

overwhelmed by three things, coming out with a reference architecture from particular use cases, built in integrations to reduce integration risk and technical expertise to help customers really get started quickly. and we have all the hyperscalers as partners. we have anthropic, and a bunch of cutting edge tech companies focused on orchestration services, as well as fine tuning services to really fine tune models for particular use cases. >> we had talked with an analyst earlier about amazon do you think that all of these things become commoditized ultimately. >> there is some talk that the foundational model space is one of the most quickly depreciating assets out there, given all the money spent on previous generations and all of a sudden new models are so far superior nobody is using even lama 2 or gpt 2, et cetera i think that what we're seeing, though, is that typically when a new technology comes out, value accrues at the bottom layer first. you see nvidia post amazing numbers. openai the most talked about

company since chatgpt 18 months ago. but what we're seeing customers saying is that when do i get the value? where do i get the return? and the return will be coming to the applications that are built on top of the infrastructure and so, we're now starting to see the buildout of those applications, even consumer apps or now enterprises -- >> which raises a whole other questions. there are a lot of startups out there and large enterprise companies thinking of building apps on top of the large language models. there is a separate question, which is to say, is it likely that when we get the next version of these large language models, that they effectively are going to be able to do what the apps do already. you'll be able to build your own app, meaning there is -- there is no real moat. i'm not talking about getting to agi. i'm saying at some point, you may say, what are the paths i should or should not go down because, you know if i look at my watch, there is going to be a new version of whatever it is,

and it is going to be able to do this by itself >> i think where -- i think there is clearly a trend where we'll go to what people call agentic work flows i think we're a little bit ways out. and, again, people need to build apps and they need to figure out how to, for example, enrich customer experiences, how to essentially drive more cost out of the business, and to find new ways to drive growth. >> what is a cool example of some apps you think have some great value today? >> let me give you an example. we have an automotive company who built an app that listens to the noise of your car, so if you have a problem with your car, they can -- you can record the noise in your car, and essentially get quick diagnosis of what the potential problem is because they have a repository of all the potential issues your car may be having. >> that's cool >> that's an example of using a.i. very intelligently to deliver better customer experience >> for ev.

>> and so, that's one example. we have other customers who are essentially using a.i. to figure out how to look at health reports and be able to provide better diagnosis for patients so they don't have to spend all this time trying to figure out what's wrong with them and so, we have two banks who are using our technology to radically reduce the time to -- and cost of migrating of legacy platforms that are old, brittle, expensive, to new modern platforms. so people are quite motivated to do this. it is still very early. >> in those instances, they're training off the data from the enterprises, individual enterprises, not just using the large language model to figure this out. >> so there is a bunch of use case, customer support use cases, you can automate the interaction of service support there is automation use cases, and there is what people call enterprise rag enterprise rag, retrieval augmented generation, you're

marrying private data with the public data and reasoning of the models in that case of the automotive company, they have private data of all the noises sound like and what are the potential issues but can marry that private data with the undata to generate incredible value and you'll see a lot of cases being deployed because data is the new gold and people want to use the data for a compelling advantage. >> dev, thank you for coming in this morning. >> great to be here. thank you. still to come, cvs shares plunging this morning after profit and revenue both missed expectations we're going to talk to an analyst out with a new note on the company this morning and then bipartisan legislation that creates a federally sanctioned antisemitism monitor for select college campuses. we're going to hear from both representatives who have created that bill. "squawk box" coming right back >> announcer: time now for today's aflac trivia question. what european capital is known as the city of light the answer when "squawk box" returns.

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all right, welcome back, everybody. there is a lot of news in the healthcare sector this morning pfizer beating expectations for earnings on the top and bottom lines, but cvs health missing estimates. the company cutting its full year guidance and news from j&j. joining us is jared holtz. jared, you got a lot of ground to cover this morning. very busy sector what do you want to start with >> becky, hey, thanks for having me i don't really know. i think the totality of the johnson & johnson update, pfizer earnings, the cvs guidedown, a ton to start with. we can start with cvs right off the bat. this is probably -- >> stock down sharply. >> that's the biggest guidedown for a large cap name in healthcare we have seen during this earnings period so far. and they cut earnings by almost 15%. a lot of moving parts here i think the biggest issue is

just very reminiscent of what we have seen in managed care over the past couple of quarters, where we're getting much higher utilization trends and that's leading to earnings misses for, you know, a lot of the companies and cvs, the aetna division responsible for a lot of this damage, but the pharmacy and retail pharma in general not at a great place to be. we have seen what happened to rite aid and walgreens too. >> i heard from the ceo this morning and she talks about how they got caught off guard by the medicare advantage trends on top of the elevated baseline but their visibility was really hurt by that cyberattack that changed healthcare how much of it do you think is the pscyberattack, how long does it take to get back on top for all of this? >> a lot of that has to do with accounting and just getting the numbers right from a reconciliation standpoint when you're looking at patients

coming in and getting paid for certain things cvs is a little bit of a different situation because you got on one hand there are retail pharma company, on the other hand, they're a managed care company. i think there are positives and negatives that you can probably derive from the change situation. but, yeah, in terms of visibility on utilization and getting caught off guard with more medicare patients using the system, or having some sort of healthcare procedure done, it has been very difficult for any of the companies to forecast how strong trends were going to be and we have seen a couple of companies get caught off guard for sure >> okay, pfizer, decent reaction there to their earnings. i think stock is up 2.2% right now. your takeaway? >> it is fine. i think at the end of the day, no major changes to the -- to my thesis, i think the street's thesis on the stock. it is more value oriented. it is trading kind of 12, 13 times numbers which i feel like

is kind of fair. they give you a couple positives, a couple negatives this quarter a lot of the beat was driven by covid revenue, which is, you know, probably going to go away. there is a one-time item in earnings i think most of the earnings the guidance update they gave, the guidance increase is based on a reconciling item of tencents that gets you there. all and all, i think a lot of moving parts, i think the street wants to see a lot of these deals get integrated and performance getting better but for now, as a cost cutting exercise in part and then the dividend yield i think is intriguing at 6%, but with rates at 5, tough to get too excited about it. >> okay. finally, let's talk johnson & johnson. they have a plan out today to try to deal with the talc litigation, the last of the ovarian cancer they have proposal to put back almost $6.5 billion, $6.475 billion to deal with that. they want to put it to the

claimants still to be shown if they can do that if they can get the claimants to vote off on that, they think this will resolve major issues what is your thoughts? >> totally agree this would be a huge win for j&j if they can get this done and settled at that amount it is the biggest overhang on the stock, tough to discuss the company or the stock at all without bringing this issue up for at least a couple of years now. so it would be great if it goes away yeah, they're going to go after the plaintiffs, if they get 75% of the vote, you know, hopefully they can settle this thing at not a massive cost, and they're going to be able to pay it down over years and so i feel like it is affordable, the street has been talking about a number even bigger, so if they can get this thing done for under $7 billion, i think it would be a huge deal for the stock. obviously nothing done today but if they can make some progress here, it would be very significant. >> what do you do with any of the stocks today

j&j, cvs, pfizer >> not much. like j&j is probably the most intriguing of them all the talc situation goes away, there is lot of value to be unlocked, even though they are, you know, faced with drug pricing, some patent losses, et cetera, on the pharma side they have done a very good job in med tech and a lot of dry powder to do deals in -- on the pharma and biotech side, should they see fit so, if this can go away, and i know they're trying to make a lot of progress here, if this is kind of like all settled, i think j&j is the most interesting long of the three. >> thanks a lot. i know you have a busy day thank you for hashing this all out with us. >> thanks so much. i appreciate it. >> still to come this morning, a new bill to battle antisemitism on campus, making its way through congress "squawk box" will be right back.

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this morning police officers clearing protesters from columbia's hamilton hall, which had been seized and occupied the night before 40 to 50 pro-palestinian protesters at that building arrested, bringing the total number of arrests at columbia to 230. columbia's president asked the nypd to maintain a presence on campusthrough at least may 17t now to try to prevent further encampments or occupations fascinating article in "the wall street journal" about the president of columbia and some of her supporters and some of her detractors and the leadership questions about just how they got to this point and whether she's going to be able to maintain her job ultimately >> and a bipartisan house duo have proposed legislation to create federally sanctioned third party antisemitism monitor, a monitor for select college campuses that are federally funded here with the details, the

co-authors of the legislation, democrat congressman ritchie torres and congressman mike lawler, both represent the state of new york. let's start with congressman lawler or either one, whoever feels more strongly, how many different methods or legislation did you kick around before deciding on this strategy? i don't know what we need to do, to be honest, congressman lawler >> i think this requires a multi-pronged approach today we're actually goingto b voting on a bill that i introduced last year, along with congressman torres and gottheimer and moskowitz that would require the department of education to adopt the ira definition for antisemitism. but that's just one piece of legislation.

obviously the bill that congressman torres introduced and that i'm co-leading, the columbia act, is another vehicle by which to really ensure that these institution are cracking down on antisemitism on campuses all across this country, by allowing the department to install a third party monitor to make sure that they are adhering to the civil rights act and enforcing title six. >> and congressman torres, your comments >> yes, so, you know, title six prohibits discrimination, harassment and intimidation against all students including jewish students and the purpose of the monitorship is to enforce the law. the status quo is fundamentally failing jewish students on college campuses as evidenced by the madness that took hold on columbia university. and if we do the same thing over

and over again and expect a different result, that's the definition of insanity we need a new model of enforcement in which there will be a federal monitor on site who can see the facts on the ground with his own eyes, and then report whether a particular university is in compliance with the law. >> congressman torres, in your view, is the issue nuanced at all? i'm talking about between expressions of free speech and the right to protest, which is so uniquely american, and that's what i hear again and again. i hear the caveats that, you know, we're unhappy with what is happening, but certainly we -- i heard the biden administration say it yesterday, his press secretary, that we even urge protests and demonstrations at commencement exercises, if that's what you want to do it is a weird line or fine line to try to walk >> look, i agree with you, except there is a difference

between free expression and intimidation there is a difference between free expression and harassment and what we're witnessing in places like columbia university is the creation of a hostile environment for jews on college campuses in violation of title six. there is no first amendment right to blockade entrances, no first amendment right to hold people hostage and harass and intimidate jews. those are not activities protected by the first amendment. those are crimes, punishable by law. >> we have seen this many times in the past, congressman torres, and where i was going with this, and there is a piece, editorial in the "wall street journal," america's new mob rule, and pointing -- things happen gradually and then all at once, obviously. there is some finger pointing by the opinion writers at the journal, the left increasingly resorts to fomenting disorder to get its way. they go back to the occupy wall street movement, they even go so

far as to say that post george floyd that the left used that murder to trigger and then condone riots in numerous cities do you think that that's part of the problem here or do you think there is any blame to be ascribed to progressive politics >> look, i mean, extremism is not an exclusively left wing phenomenon there is extremism on the far right and far left and we have an obligation to condemn extremism, no matter what form it takes and no matter what ideological direction from which it comes i've been consistent in speaking out against the far left and the far right. >> congressman torres, what do you think about the professors at columbia, who are engaged in this activity, which may very well be different. you may put them in a different category than the students do you think they should go? >> if you have either broprofes

are student who is violating policy or breaking the law, there should be accountability, there should be consequences, of course and i'm concerned that our college campuses are indoctrinating the next generation of americans with not only hatred for israel, but hatred for their own country and i'm not aware of a civilization in human history that has succeeded on the strength of self-loathing. >> that's a good point >> does that mean the professors need to be engaged in this? >> look, i think what we need is decisive leadership. if the president had made it chrystal clear, if you fail to vacate the encampment, you face expulsion or revocation of your visa or face firing, when you have a credible threat of accountability, and follow through on those threats, then this situation could have been resolved desicisivedecisively i'll defer to mike

>> when you look at this situation at columbia, i went there last week, i met with president shafik, and she said it was a mistake to call in the cops at the initial encampment and they were trying to negotiate. and i with my colleagues made it clear to her you cannot negotiate here you need to act decisively and need to make it very clear this is unacceptable. and in 1969, father hessburg, the president of notre dame, sent a letter to both faculty and students and made it clear that, yes, you have a right to protest, you have a right to offer your opinion and oppose decisions made by the government, however, the moment those protests turn violent, either physically or verbally, you lose that right. and that they would have 15 minutes to cease and desist or face suspension, expulsion and/or arrest. and i think president shafik failed in her obligation to

ensure the safety and well-being of all students, but in particular jewish students who were under attack and threat and afraid to come on to campus and allowed this situation to get out of control you have to act decisively as my colleague just said. you cannot be weak kneed in these moments and unfortunately that's what we have seen on many of these campuses across america which is why it is so critical to enforce the law and why congress is taking steps to do that >> how about northwestern's president, michael show, who just cut a deal with the protesters and said they're going to be doing more scholarships as a result >> look, from my vantage point, negotiating with, you know, pro-hamas agitators is absolutely absurd. you have a bunch of people who have embraced an ideology and a viewpoint that supports the beheading of innocent women, children and babies. this is not a free speech issue.

these are -- by the way, these are private institutions, columbia, there is no negotiation to be had. and i think the failure of leadership here on the administrative level is what is allowing this to persist >> it is longer -- it is a longer conversation. i've been around a long time you don't -- when you use force, and i'm trying to figure out, has florida got the right idea, congressman? or sometimes that can make things worse this is the first example i can think of where there is an entire group of people whose safety and personal rights are being violated and i think that makes the use of -- i don't know about overwhelming force, but congressman lawler, that's what you're calling for, i think here in previous demonstrations, we don't want to get to a kent state or you saw what happened

when -- back in the '60s but in this case, i think it is fundamentally different. is it not? >> look, whether it is the storming of the capital behind us, whether it is seizing a portland courthouse, whether it is burning down a police station in minneapolis or whether it is taking hold of the grounds of columbia university, it is unacceptable it is unacceptable behavior. you have the right to protest. you have the right to voice your opposition to policy decisions that are being made. but the moment that these protests turn violent in any form or fashion, law enforcement absolutely must be part of the solution i'm sorry. you cannot allow this to blow out of proportion like we saw at columbia university. >> if i can add -- >> yeah. >> suppose there were students establishing a kkk encampment or neo-nazi encampment. i can assure you no one would be defending their first amendment

rights everyone would be calling for the end of the encampment. and so my only point in mentioning this is that the invocation of the first amendment tends to be selective. and it has become a pretext for turning a blind eye to antisemitism. >> and thinking about, you know, college kids blowing off steam, some of them are 35 years old and they, you know, cut their teeth at the wto protests, i think. it is all -- doesn't matter what they'rprese otting just there just in love with the agitation. congressman ritchie torres, thank you. congressman mike lawler, thank you. "squawk box" will be right back.

coming up, countdown to today's data, we'll be getting the adp report on jobs at 8:15 eastern time and dan tarullo will join us to talk about the fed's rate path, inflation and what it means for the markets. up next, the doj's antitrust case against google. we'll hear from president's former antitrust adviser on what to expect. we'll be right back. while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley

all right, welcome back, everybody. closing arguments for the department of justice antitrust case against google are expected

this week. it is one of two separate antitrust lawsuits that the tech giant is facing this year. one on search and one on google's advertising business. joining us to talk about this and much more with the tiktok ban that is proposed as well is tim wu, he's columbia law school professor and former adviser to president biden on tech and competition policy and, tim, i'm i'd like to start with what is happening with tiktok. you're in favor of the proposed sale or ban. >> i think china has a track record on internet freedom, which is totally disqualifying for letting them control one of the world's most important social media netn networks. >> your thought is not that it is necessarily a national security risk right now, but no matter what happens down the road, you don't want them here >> i think it is a bit of a national security risk, though it is not clearly proven i think china has violated so

many internet norms that in a sense part of what the u.s. is doing is saying, china, you don't get equal treatment in our markets. i have more of a trade angle on this you ban all of our apps, you take whatever data you want from us, that behavior does not merit the same treatment as othe cuba a few other countries that just do not obey any of the basic principles when i was in government we worked on a thing we had a declaration for future of the interneat. the basic principles law-abide be principles should follow. china violates almost every one of them. that merits different kind of market access. >> so you hope this goes through and this it will >> the law's already passed. >> already passed, but what happens down the road? >> the challenge -- >> litigation is coming from the company. >> litigation. i think the company will lose that litigation. then the challenge is really for your viewers figuring how to do this kind of deal. divest a pretty complicated asset. >> do you think it's possible? >> i'm not an expert on

complications -- >> there are different ways to go about this. you say google, meta and oracle could have the money but you think it's a third-party option? >> not a good idea to give tiktok to facebook a disaster. create a monopoly. i think someone's got to get creative and maybe a very wealthy individual, something like that. maybe shake stuff up make tiktok can, be introduced to competition. >> do you think without the algorithm anyone can actually do this competitively i imagine happening, chinese say, look, not going to sell the whole thing at all sell it to you with user data. you can have users, have the name in the united states. you can't have the algorithm you have to develop your own if you have to develop your own algorithm in the time it's going to take you to develop one that's even anything within the vicinity of what tiktok is like today, that your friends at facebook or meta andfriends at some other plays will have, take

in such large market share, diminished anyway? >> yeah. i think we don't know -- let me say two things about it. first of all, if tiktok actually has to do everything china says they're not independent in the way they say they are. won't let us sail. the whole element they're separate from china isn't true. >> i just want to the push back and ask you a question a number of instances the united states has said that we cannot either buy assets from china are 0 sell assets to china. >> uh-huh. yeah. >> okay. would you, therefore, say those businesses in the united states are not independent? >> well, i mean -- >> somehow the government controls everything? that is -- just saying, it's in the same vicinity. >> i hear what you're saying depends -- the ones they can't sell are usually highly specific national security secrets. i don't think tiktok algorithms are anything like that

rumors are china won't let them sell at all. we don't say you can't sell the sub sit area, can't sell or export this particular national security technology. a big difference put that out there on your original, on your -- forgotten. original -- >> just a question would a meta or a snap or name somebody else, would take so much market share, while, you know, the -- you know, somebody else has to build their own algorithm? >> it's a competitive market i think tiktok is a huge user base algorithm? i feel they're more commodified. might be special i can't imagine tiktok valuous without an algorithm all i'll say. >> and several million users. >> less money but i think coming back to the main line, we cannot have this essentially propaganda unit run by, controlled by a krunt which violated every internet norms stand up stop playing suckers

let china ban every one of our apse and be like, oh, yes. come in, do whatever you want here it's terrible also for children. add that on top. >> talk quickly about a google antitrust case what should we be watching >> word on the street, obviously my friends are mostly enforcement people, think google's going to lose the case. the question is starting to become remedies. i don't know for sure. i think it's very important that the remedy be forward-looking. if they come out of this case and just say, hey, google, stop paying apple $20 billion a year. that's a favor to google they need to think not about -- okay looking backwards. competition is basically over. the question is what's next and what opens the door. >> play the music and say we have to go but you work at columbia. >> yes. >> so i have to ask you and you don't have to answer, but what do you think of what's happening on your campus >> it's been incredibly intense for everybody.

i'm glad they got people out of the building say that much. >> thank you, tim. tim wu. coming up, the november election that is coming up. it is approaching. a lot at stake for investors why wall street is worrying about it and worry is growing monthsn iadvance. that's next. we'll be right back.

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welcome back to "squawk box. as november approaches investors nervous the election could affect markets we'll see. lead writer with us from the "wall street journal." do you really believe folks are getting nervous about the election and that what's leading to all the volatility? >> right out in maybe not but i've been hearing from financial advisers people on wall street, strategists, this comes up at every meeting. what's going to happen in the election how will it impact individual's portfolios we are actually seeing this in the market already seeing people hedge for volatility in the october, november time frame. that's around that election. >> so very interesting look back at history. right prior to an election, actually, there's not always been crazy volatility.

an expectation people think they know what's going on usually the summer months you have that. what are you seeing? >> data shows things tend to be volatile ahead of the election once that uncertainty passes major indexestypically rally one investor said vote with your vote not with a trade. there isn't too much of a difference in terms of long-term performance for s&p 500, different insofar as we know what the current president's policies are and the way he would manage, and we know what the former president's policies are and maybe the way he would manage >> so the "wall street journal" recently reported that trump allies are looking for ways to potentially have the president influence interest rate policy, play more of a role how the central banks operates than didn't happen last time trump was president. >> he was talking constantly. >> tweeting about powell. >> needs lower rates, blah,

blah, blah, yes. >> and we do know what these two candidates policies look like but such different views on everything from immigration to the economy, taxes. >> taxes. >> taxes, taxes, taxes the number one thing. >> taxes and tariffs the two things that -- i mean, capital gains proposal, that would never happen also, unrealized gains that will never happen -- >> just that -- china tariffs and how inflationary issing that going to be? >> i know. tariffs are not a conservative tenet usually. i don't know. >> it's not. andrew, you're asking about volatility we're already seeing election-related volatility. think about donald trump's social media company swimming like a meme stock clean energy stocks rallied a lot before biden's last election could see volatility at the single-stock ledvel. >> what do you think is going on

with the truth stock >> a proxy how trump view his candidacy and i think we'll continue to see intense volatility heads into the election. >> do you see it as a mechanism to get him cash ahead of the election sort of fund-raising mechanism >> some investors, yes some are turning to that thinking of this as a way to benefit trump. and to get him this kind of big cash windfall. for a while it seemed to work. >> i see thank you. >> thank you >> weird and, again, back to, what? 50-something unbelieve al. just after 8:00 a.m. on the east coast you're watching "squawk box. i'm joe kernen, becky quick and andrew ross sorkin a month's worth of big stories amazon shares moving higher. better than expected earnings and revenue. company seeing growth in

critical after thing that market. and cloud computing areas. president biden announcing an additional billion dollars in student loan debt. helps students who took classes at for-profit schools known as art institutes. a few months away from april adp employment numbers expectation, addition of 183,000 private sector jobs last month bring you that data when it hits at 8:15 eastern time. ahead of those numbersrrowas dow off, s&p down and nasdaq down by 110. treasury yields elevated from where we were at this point yesterday. ten year now at 467. two year at 502 and let's get right over to canontessa brewer with a look at big market

movers. >> shares of cvs plummeting. earlier today reported earnings and revenue that missed expectations look at shares down almost 12% it slashed guidance for the full year a company that's really been working to expand medicare advantage plans, turn in to a true health care company from its history and legacy as a big drug store chain the ceo karen lynch called it in the earnings release a near-term challenge saying cvs health has a plan to deal with this pfizer having more success reporting this morning with revenues ahead of estimates. the company hiked its full-year profit outlook the pharmaceutical giant said new profit guidance accounts for its confidence in its business and ability to slash costs those shares up just 1% in the pre-market finally, look to starbucks continuing to struggle after reporting earnings yesterday the coffee chain missed estimates on the top and bottom line slashed its forecast for fiscal

2024 predicting its cafes would keep underperforming several more quarters. saw store traffic and sales down in the quarter as the company tries to adjust to what the ceo calls a highly challenged environment and those shares are off by almost13% in the early trade. joe? >> contessa, thanks. the fed's two-day policy meeting concludes today. for more on that and the recent corporate quarrel. bring in cnbc's contributor and she's at barclays. listening closely. what are your expectations i can't imagine we hear, yeah, not today, but we're getting closer getting closer would he ever say, not today, and we're not getting closer >> i mean, i think powell's in a bit of a bind. i mean, going to have to acknowledge that data is disappointing in the press conference and i think while

he's likely to downplay the possibility of outrate hikes also going to have to manage to walk back some of his past comments about the extent of policy restrictiveness, and without a dot plot on offer, a bit more hawkish here this afternoon and lean towards this need for tighter financial conditions so i think they drop the "at some point this year" language he rerreferenced last meeting as dialing back policy strength. >> not at 50-50 yet on hikeses versus cuts. are we >> we're not we're not. i think it'sjust about delayin the inevitable here, which is, in other words, if we don't see sustained declines in inflation over the coming months, we think the fed will likely push back to an initial cut at the earliest that materializes in september i think it's predicated on the basis that core pce slows into the summer i think we're just as likely to

see that first cut slip to december, if even a slight hint inflation has yet to subside >> do you think inflation, a., is going to continue to come down and, b., why is it coming down because we're in restrictive -- when you say inevitable that we eventually cut i gist don't understand why it's inevitable, if we don't -- maybe see something in the adp numbers. if the company continues to stay strong and inflation stays sticky, i just don't know why it's inevitable that the next move is down >> no. a great point. i think some ties of the fed lows to risk losing credibility with the market at this late stage. i think equally there's a compelling case that higher for longer will in and of itself contribute to further tightens over time. that should reduce the need for rate hikes so i think sitting tight here

for a prolonged period, even if into the turn of the year, is probably the right course of action i think that they are going to want to avoid a scenario where they sit too long and then start to create cracks in the market but i think they've already suggested they've got time and can afford to wait and see, and to gather more information before they make that determination. >> what can you tell me about just the overall lending environment, corporate and bank and elsewhere? i imagine rates are tracking the ten year and the two year back up at this point, the dollar is starting to wreak havoc around the world in our currencies. there's dislocations that are occurring. are any of them troubling or -- getting out of hand? >> for the time being, what you're seeing in credit markets is in the face of this very material market repricing and higher interest rates that credits remain surprisingly

resilient. that is in large part tied and supported by underlying yields that are still near postglobal financial crisis highs so invest grade, you can still clip 570 on the index there and high yield closer to 880 even as spreads remain tight that feels, you know, comfortable, i think, in an opportunistic entry point for a number of investors we talk to, because the growth picture created an incremental cushion for borrowers on both sides. ig and anti-yield. >> you think in comments today from jay powell you think there will be a noticeable shift in tone >> i think he has to i think we saw a precursor to that in fed speak prior to the blackouts across the board britty much and unwinding what was powell getting ahead of his skis last meeting's yes. i think we're going to expect a more hawkish dance here or a less dovish dance, if you there.

consistent with the repricing we're seeing in the market with one price cut ahead of year end. it was closer three cuts in start of the month. >> we got adp coming i wouldn't know which side of the trade it will take right now. do you have a notion really hot or -- >> yeah. i think the bias is that rates will continue to trend higher. our rate strategists say short ten-year notes heading into this meeting. of a that for several weeks now. >> okay. thank you. barclays coming up, product pay roll data from adp and market reaction all straight ahead later, this one's interesting. the lawyer who filed a class action lawsuit on behalf of a jewish student against columbia university for failure to provide a safe educational environment for its students, is going to join us to discuss the case and the situation on kl college campuses and the legal

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welcome back to "squawk box. breaking news. april adp employment coming in with a gain, ready for the number, 192,000 jobs slightly hotter than the 183,000 the street expected. not by a huge amount, but 9 biggest sectors leisure and hospitality, construction, education also health services pay grade for those who stayed in their job april flat 5% of job changers, 9.3%, down

from 10.1% last month for those switches gears in terms of job joining us, a chief economist at adp. good morning to you. give us your highlight or read-through what this number really means. >> it means that job creation in the first part of 2024 looks like, a lot like it did in the first half of 2023 we saw the slowdown in hiring in the second half of 2023, and now it looks like hiring is picking up the three-month averageis stronger than the previous six months so the snapshot here is hiring is still strong and wages are not falling as fast as they were, the wage growth is not falling as fast as it was earlier in our six-month outlook. >> jay powell is watching you now. you would tell him, what and what to think about all of this >> well, i think i'd tell him what he already knows, which is tread carefully.

because what we're seeing, even if you look at the job changers you just cited ticked down from last month. pent from 10% to 9.3% but not to the the trough lower earlier in the year. bottomed out at 7.6% in february, and we look at this index carefully, because it's the most sensitive to realtime labor market conditions. so the fact we're seeing a little more strong growth in pay growth for people switches jobs and still pretty high job openings means that wages are not playing along with the 2% target yet they're still higher than that 2% target allows for so as we look at what the labor market is saying, it's sayingt the fed, we are a smoking amber and could ignite and watch wages. wage growth is still strong. >> could ignite, meaning, ignite even further >> yeah, yeah. that was what was interesting to

me in the last tcouple months. steady declines in pay growth in the last six to eight months in march something different happened pay growth, saw it ricse i'm really watching pay growth that pay growth is concentrated at the bottom quartile, an important note it means a lot in terms of consumer spending and i think sets the tone for rest of the year in terms of not only inflation also gdp growth. >> we talk about a.i. all the time a.i. coming to take our jobs, technology coming to take our jobs therefore, you argue higher productivity, longer term. any of that playing out in reality when this? >> it's hard to see in realtime but it is playing out and i think a longer-term play look, productivity is the answer

to all the economic woes we see. it's the answer to the inflation, because you can produce more output with less input over time. and it's the answer to wage growth it's how to keep wages rising and outpacing inflation. so these new technologies have the capacity to increase productivity and that is good, but depends on how they are deployed and i think companies are still in the early stages of figuring that out. >> okay. nela, thank you for joinings us with the numbers. >> thanks for asking me. united health group ceo andrew winny set to appear before two congressional house one from house one senate answering questions about the hack of a unit called change health care. america's largest payment management system for health care providers, and ahead of that we bring in washington state congresswoman cathy mcmorris rodgers who chairs the house energy and commerce yt

united health will go before the subcommittees this afternoon what do we expect to hear, congresswoman? >> this is an important oversight committee hearing of the energy and commerce committee. we expect to get a comprehensive report from them, from united health, as to what happened. why millions of americans have had their personal health information made available on the dark web what they're doing to fix this problem and, then, also, what we must do, what united health must do and what action we must take to ensure this never happens again. united health is very large. it has, you know, millions of families and taxpayers that pay billions of dollars to united health in premiums and we need to make sure that their personal health information is protected from these kind of attacks, cybersecurity attacks that we see. >> there's been so many times when we hear about hacks, hear about personal information do we ever follow, follow the

money to see what actually happens down the road? what do we expect is going to be done with the information that was collected? do we know whether there's been any indications it's being used in a manner to profit whoever came up with this whole idea >> well, that's also a very good question, because united health decided to pay the ransom. we're going to ask questions why they decided to pay the ransom in this case, because we know that when you pay the ransom, that only encourages, not only incentivizes behavior those perpetrated these kind of cyber attacks. the committee spent a lot of time, numerous hearings. just two weeks we had a hearing on cybersecurity and how, as it relates to health care and what steps we need to be taking to protect personal, in this case, sensitive, health information that is on the web

and has been made available on the dark web in this case which is potentially harmful to millions of americans this is a very serious issue, and that's part of the purpose of the hearing today. >> plenty of companies that offer services to try to prevent or make this much more difficult. you would think that in the private sector that it would be in the best interests of companies to -- to, you know, it might cost a little more margins might be hit, but you expect them to do this on their own, or do you think congress meeds to get involved? >> well, this hearing is part of us getting answers we need to better understand what happened, why it happened, and then we will look at what steps we need to be taking certainly cybersecurity, whether in health care or other sectors is top of mind for americans as we see more and more of our information online, you know, the committee is working on protecting american privacy rights online. we've also worked on lower

costs, more transparency to give americans, give individuals, more ownership over their data, but also to understand what the prices are, because in this case, united has become very large, and the individual -- unfortunately -- doesn't always have a lot of power and control in this. so we want -- i believe it's very important we get legislation that's going to get costs, understand what the prices are we have united as a very large health insurance company that maybe doesn't want to pay the prices only the doctors providing the care that's, that can be problematic. >> as far as ransomware attacks year over year, do you know what the percentages are on, so, like we're talking about earnings being um or down a certain percent. but is it increasing very quickly, and is there anything that the federal government can do to try to tackle that

head-on? >> well, what i do know is that there's a lot of consolidation that united is becoming larger and laerger and now pay between 40% and 50% of the health care claims in america and this consolidation, we know, only leads to less choices and higher costs for patients or individuals. so that's where we have, as we've looked at the consolidation, we passed legislation with overwhelming support, lower costs, more transparency to address this consolidation to provide more competition in the marketplace, which ultimately brings down court and gives consumers more choices and we're working with the senate to get them to take action on this, because we're overall concerned about just these larger and larger health care systems. >> very good congresswoman, appreciate your time this morning. what time's your hearing start >> it's going to be this afternoon at 1:30. >> 1:30.

right, writing that down you look excited which is very good thank you. appreciate it. coming up on the other side of this, the latest fed decision now just a few hours away, after a break, talking about what to expect with the federal reserve. daniel tarullo stay tuned you're watching "squawk box" and this is cnbc. - wow. - get it there. and sometimes luck. but what if luck had less to do with it? what if we had the tools to help us practice smarter, the insights to gain an edge, and the data to inform our strategy? taking our games from that... to this. yes sir. kpmg performance insights are transforming the game for the entire lpga tour.

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-or as little- as you want. cache in at cache creek casino resort. welcome back to "squawk box" on cnbc. the futures after that adp number little changed. still adding to yesterday's losses, though 73 points now on the dow nasdaq indicated down just under 80 a lot of fed happenings today with the two-day meeting ending. we take a look at treasurys. watches them the entire yield curve. ten year now 466 two year is above 5.

watching that kind of a key level. 5% then cryptocurrencies including bitcoin. saw it almost go under 57,000, then bounce back above 58,000. just in the last week, week and a half we have seen it move around 65,000. it's been a big haircut from bit bitcoin -- take your pick. risk-off trade in equity markets. more unlikely for rate cuts this year a lot of assets counting on that, including business coin. some of the morning's key earnings mover, cvs and pfizer you can see moving in opposite directions and cvs talking about rising medical costs to report disappointing results. and pfizer's up 1.25%. good news. bad news is, only 33 cents when you're a $25 stock, and pfizer's had a -- talking covid, talking

pandemic, $45. i remember now down by $25. eli lilly is almost a trillion dollars. closing it on in. >> thanks to mounjaro. >> and the other one. and shares sharply higher, 20 cents a share beat estimates and monthly active users coming in $518 million beating estimates $505 million coming in above expectations stock up 15% on that news. good news after what has been a challenge for pin trterestpinte. breaking news, joining us from washington. hello. >> the upcoming quarter, treasury offering $125 billion in securities in line with expectations and expect to hold

auction sizes steady at least the next several quarters. really should come as a relief to the treasury market, which has been overwhelmed by supply break that down, refunding around $108 billion and raising around $17 billion in new cash breakdown expected to hold steady from last quarter should come as no surprise as welling. two other details to highlight in this release. treasury launching da buyback program launched between now and the next quarterly announcement. starting may 29th. buying up to $2 billion in securities each week the other announcement to highlight treasury is elevated its six-week cash management bill, to t bill status talking about doing this a little while saying widespread support on the committee for doing it they say it's really because supply has been so elevated. they want to spread out the curve the number of issuance and

where they are coming from another sign, guys, just how much supply is continuing to stay elevated to fund these federal deficits becky? >> yeah. a concern. some of the treasury auctions recently far bigger than expected also raising concerns about the level of revenue the treasury is taking in. >> absolutely. they said the reason they announced monday they are expecting to need to borrow about $41 billion than previously expected. said because of lower than expect ed tax reality concerns close to full employment tax receipts coming in lower than they thought, where's revenue coming from? especially if the economy falters a little in the coming months. >> thank you add that into all of the things we're kind of watching around the treasury and whatthe fed may do in reaction to some of these issues, too. megan casella. the fed's two-day policy meeting wraps up today rates holding steady likely.

for more we bring in dan ta true tarullo. he led the implementation of dodd/frank and now a harvard lar professor. talk through what we're seeing law professor. data suggested inflation a hard beast to tamp back down. what do you think? >> becky, sure does look as though they have almost a cliched view the last part of the battle is the hardest. what's happening here. a good experience through 2023 obviously it's stalled out and obviously reflected in what chair powell has been saying the last few weeks, and i anticipate it will be reflected in what he says at 2:30 this afternoon. >> larry summers, former treasury secretary, tweeted out yesterday after the eci and

housing inflation, price inflation figures he's concerned rent prices could rice again keeping lower on levels fed is really watching but worries everything you see at this point. there are bottleeck ins with higher interest rates and higher unit prices rents at some point will reaccelerate, too do you share that concern? >> probably not as much as larry does, but the housing market, becky, has been really hard to track. easy to track but hard to predict. i think that's in part because of the impact, cumulative impact of the pandemic and much higher interest rates you have that kind of affect on the sales market obviously trickling down to the rental market we saw a significant, pretty significant swings i do share some of larry's concerns you may begin to see a

reacceleration, not what the fed and many other anticipated. >> right now the dow is indicated to open down about 56 points saw a change all morning long looking at weaker futures all three major averages paired some losses after the number we got from adp at 8:15 adp a little stronger than expected in terms of jobb s created. 5% for people changing jobs. enough good news to make people think okay, this is better we're trying to figure what expectations from the fed and how the market will react to that today. >> i can't imagine -- for multiple reasons i can't imagine the adp will have much impact on what the fed does today or even what jay powell says today, except perhaps in response to a question you know, it maybe was regarded as a bit of an offset to the eci report, obviously it was not so

favorable, but i wouldn't put -- a classic case of not putting too much stock in one report becky, i think essentially where the fed is going to be at now is that they've got to continue to say they're data dependent they've been saying that the better part of a year. they've become a bit data captive, actually. right now with the recent, three inflation reports, with eci report, i don't think they've got any choice but to sound either, i want to say less dovish or more hawkish than they did not so long ago. >> what do you think jay powell's message will be today how pointed or maybe how oblique? >> yeah. i think -- again, i'm going to refer back to what he said before the blackout period, which is where he seemed to be

positioning the fomc to say, look, we are in a -- we're in a place where we can stay higher for longer if that's what the data tells us is needed. or if the labor market begins to weaken, we can react. so that, that suggests that that's going to be the principle message, and if you don't see too much change in the fomc statement, and that's the kind of lead that jay has in his introductory remarks, then i think that's basically where we can expect to be that is, they're going to wait for better data. the thing that might happen, i don't expect it to, but the thing that might happen is that you're getting some pushback from some of the members of the fomc who are a little bit more worried and would like to see a little more ramping up in the language of the fomc estimate. that's what i'd like for we say it's not what the fomc

statement says what it says that's differ from the last one. >> right nuance looking for nuance everywhere. professor, thank you -- >> a red line, basically. >> red lining. basically run it through the machine learning quickly, show us the changes professor, thank you. >> sure thing, becky. coming up, new york's, columbia university, calling in police finally to help with protesters upset over israel's military actions in gaza after the break, speak with an attorney who filed a class action lawsuit against the school blasting it for allegedly becoming too dangerous for jewish students. "squawk box" will be right back. onic bra ur community. today is all about you. (♪♪)

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welcome back to "squawk box. futures now actually improved

just a little bit on the dow and the nasdaq we're all waiting to hear. as we just heard in that last interview, what jay powell, what his body language looks like what his tone is like. what he does say what he leaves out here's treasurys this morning. we are around -- looking at levels that we sort of have been here a while ten year 467 but notable, five year is, feels comfortable with the yield, the two year yield abrov 5%. new york, meantime, police clearing a building last night at protesters had taken over the nice before. they want the university to divest from those related to israel speaking with "morning joe" in the last hour. >> we want these schools across the city to be clear that the property of the schools are for the students more than just columbia.

more than what we saw at city college. this needs to be a clarion call for our country. these are our children, and we can't allow them to be radicalized like children are being radicalized across the globe. >> earlier this week a jewish student file add class action lawsuit against the school for failing to provide a safe learning environment a fascinating lawsuit that could have much larger implications. joining us now is jay edelston lawyer for that student. nice to see you. this is effectively a breach of contract lawsuit which is to say students effectively pay to go to school and you're saying they can't. >> they can't. yeah and i think i'm a lawyer we always have to say allegedly, not in this case they absolutely breached their contract i don't even think columbia is arguing otherwise. we have been talking to columbia

and they've agreed they cannot maintain a safe environment. kids who worked their whole lives to get into one of the most prestigious universities in the world and they can't go to class and are being forced off because they're jewish it's insane. this is america. that should not be happening. >> so you brought this case. >> yeah. >> got phone calls from all over the country. i imagine this will be potentially the first of many lawsuits similar to this >> we're see it's really interesting. you see universities dealing with it in different ways and i appreciate the mayor's comments. i think he's right what we're going to see as this case develops and the facts come out, it's not just student protesters it's really outside agitators. people who have much different agendas, who are not, what they're saying to the public is different from what they actually believe you hear them talk and say we are calling for terrorists attacks on jewish, they're calling for terrorist attacks on america. that's coming from outside

forces, not the students that's what we're going to develop and i think it's true in other campuses. >> you think sdiscover, you mean in discovery >> yes. >> and what does this look like in this case >> injunctive release, restoring the campus to safety so all students can learn they're in middle of finals and you've got a system where certain students aren't able to even go and take in-person finals, and other kuones, radicalized ones own the campus. up to now. we're glad the mrpolice finally came in. we want to restore order a family in pro bono, working with columbia. our goal is let's restore santy to the world, have adults in the room and let our students come in -- >> where do you end on the idea of free speech protests on

university campuses and the like and where the red line is on everything else? >> love free speech. i think that there should be more debate about, was israel, was there reaction to the october 7th terrorist attacks? was it proportional? was it not what's egypt doing they border on gaza. why aren't they letting people in should we divest from the israel great discussions. part of the especially the -- what you can't do incite violence and engage in violence. jewish kids being physically pushed off campus and being told from leaders especially at columbia that -- that the goal is to actually kill jews in america. that's not free speech. >> when did columbia university go wrong what was the first misstep and

how have they not corrected since then >> great question. compare to university of florida. the second there started toing violent protests and illegality they started suspended kids. columbia every two days a different view here's our -- our ultimate um and ultimatum happens and they go backwards even now they have, we appreciate they finally called police in, which they needed to do should have done it weeks ago. the question is, are they going to hold strong or give into demands they're going to give amnesty to some of the kids calling for violence on fellow students so that's where they went wrong. got to be strong, decisive and clear. otherwise, otherwise you're just really furthering this. >> you think they're going to call for amnesty the expectation you have that they will say all of these kids suspended and expelled, forget it. you are allowed to come back in? >> absolutely what the student group, asking for, and we saw

barnard college lift all sp suspensions right away sends a bad message. if we want you to engage in free speech you cannot threaten people, cannot push people, cannot attack people. if you do you don't get to be 59 one of the best universities in the world. >> you believe that columbia's president should remain columbia's president >> yes yeah >> you do? >> we're not calling for columbia's president to resign what we're asking is that columbia's president does the right thing now. >> what about the professors who are on the pay roll of columbia that have been engaged with these students as part of these protests >> well, depends if -- if they're engaged in free speech, then that's fine but what we're hearing already is that a lot of professors are engaged in potentially retaliatory actions.

a lot of students worried their grades will suffer heard from one person who was getting a in a class somehow got a zero on a test that person happened to be jewish those things have not part of the -- >> what do you think is going on here i mean, really look, i'm jewish what do you think is going on here where do you think this anti-semitism, has it been here the whole time under the surface? is it these agitators have taken over the campus? is it actually the students themselves what do you think is really happening? that's a big question. >> it is i was a philosophy question and might be too big question for me my answer is i'm surprised at the amount of anti-semitism in america. it watt me off guard and the send you give people an excuse to really explain what they're feelings are, i was at columbia the other day and the amount of venom they had to jewish people

was really scary not all protesters a lot of totally fine, but it's not just anti-semitism it's an anti-american sentiment as well. >> been around and it's been -- in mainstream media, many, many, many, many people people guiltyf saying people kneel at the anthem and wear pigs on their socks and that all was fine until it got to the point where, i mean, this is serious now, and you can have a whole faction of the house representatives on the democratic side that's called a squad that panders in exactly what you're talking about right now, and it's been out in the open, and they've been defended by nancy pelosi when she was speaker, and these things have consequences when it goes unchecked, and this is where we ended up, and they don't want to hear that and they're going to bring up charlottesville and say it's a hundred skinheads that started this it's not

it's tens of thousands on the left, on the progressive side. >> you're speaking of someone on the left i agree with you i would go further the -- it's not that aoc and the squad are pandering. they're leading. >> that's what i mean. but we were fine with it, and so was corporate america. they were part and parcel. >> let me ask you this, though there are only two weeks, three weeks left of school here. if you are not successful in terms of getting the entire campus back to campus, effectively, which does seem hard, given the fact that they're going to have police there until may 17th i don't know what's going to happen with this hybrid program in terms of having people on campus, off campus do you imagine looking for monetary damage? i know you say you're not now. i know there are other lawyers, i just got an email from one they're saying they should bring a lawsuit against another school how do you see the actual litigation going, and do you

actually see monetary damages, given the fact that it is a breach of contract lawsuit based on the idea that the student paid a certain amount of money to be able to do -- to go to school >> yeah. so, you know -- >> what kind of damages could be on top of the tuition? are you looking for -- would you be looking for tuition reimbursement plus punitive damage >> let's think about this. you're a parent. you send your kid to columbia, and they've worked their whole lives for it you're spending a huge amount of money for the semester it's not -- this isn't covid where they were just, you know, off campus with everybody else they're under a hostile environment where they're under attack, and they're scared to go to the university. how much would you pay for that to send your kids there? zero so, there are certainly damages in this case we don't want that to be the focus. the focus, at least short-term, is that we want to restore some sort of, you know, adult voices to this, and if we do turn this into a damages case, it's going

to remain pro bono >> do you think the university of florida, historically, will be viewed positively, or the way that it was handled down there in this case, i think you're going to hear police brutality if that tact had been taken with some of these previous demonstrations, not this one, not what's happening now, but if you were as heavy handed as university of florida was, there would have been pushback pick your demonstration over the last five, ten years >> it depends on the demonstration. if it's right-wing, then people say, that's terrific if it's left-wing, then for some reason, there's an exception the second a protest turns violent and ugly, which is what's happened, the second you've got protesters calling for terrorist attacks on america, the idea that anybody would tolerate that, let alone negotiate with them, which is what you've got schools like northwestern doing what are your lists of demands

all that does is lead to more of the same >> jay, i want to thank you for coming in. please keep us updated on your progress with the lawsuit. >> thank you so much >> thank you when we come back, amazon in focus. we will get into first quarter earnings from the e-commerce giant. and a reminder for you this saturday is the berkshire hathaway annual meeting. warren buffett will take the stage in omaha to answer questions for five hours, and you can see it all right here on cnbc, also streaming on cnbc.com it starts at 9:30 a.m. eastern saturday morning unlocking th e power of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab.

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and rising stars, northern california's premier casino resort is the perfect place... ...to do as much -or as little- as you want. make your get away now and cache in at cache creek casino resort. shares of mastercard are lower in the premarket trading this morning first quarter earnings and revenue did come in above analyst estimates. consumer spending continued to be strong, but mastercard revises its guidance to project revenue growth at the lower end of its previously forecasted range. that stock, down by almost 3%. amazon, the second to last of the big tech giants to report earnings this quarter. kate rooney takes us inside the numbers. kate >> hey, joe, good morning. amazon's operating profit tripled in the quarter that was driven in large part by amazon web services, its

all-important cloud business aws sales grew 17%, putting to rest any fears about a slowdown or amazon losing any market share to cloud providers enterprise and generative a.i. demand really helped in the quarter. aws is now a $100 billion business, measured by its annualized run rate, and breaking out gen a.i., they say that is now a multibillion dollar business when it comes to arr. ceo andy jassy saying there is "considerable momentum on the a.i. front." but that growth can be expensive. amazon plans to meaningfully increase capital expenditures in 2024, sue hela similar to what from other big tech companies. executives assuring analysts they are seeing strong demand signals to justify some of this standing that demand gives them confidence, they said, on spending, saying it's going to play out in the long run, similar to what happened when

amazon went through their last big capex cycle on the retail side of the business with logistics. that has been helping margins in recent years advertising was another bright spot prime video and tv-style ads have been a big part of that still early days, but the ad business is off to a good start, guys back over to you >> certainly is, kate. advertising and cloud-wise and a.i., everything else. thanks let's get a final check on the markets. the calm before the storm that could be jay powell later today. down 54 points horrific session yesterday that number sort of an outlier we've heard -- there's been a lot of outliers. i don't know when the outliers become inliers i don't know whether jay powell is going to affect things. i think the actual data is in charge now, not the fed.

the fed's more reactionary >> that's actually a fair point. >> right >> yeah. >> i don't care, really, what he says what he says is going to be determined by that next inflation number, probably there's the ten-year 4.66%. and the two-year, 5.02%. we really need to be renaissance -- we have so many things we talk about here. it's hard, isn't it, to keep it all straight >> it's interesting. >> 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 and david faber at post nine of the new york stock exchange futures, red fed day, and some high-profile earnings misses. skyworks, marriott, yields are lower as this treasury refunding announcement was in line our road map begins with a monster move for earnings movers pfizer, kraft, dupont. plus amazon shares