good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. m cky quick an along with andrew ross sorkin joe is off today on this friday, if you look at the equity futures, they are in the green at the moment. this is not a big pull back after yesterday. this came after the selloff for the dow where it dropped 1.5%. that's the biggest decline in a year it was weighed down by the 7.6 drop in boeing the nasdaq was down 0.4% despite the 9% rise in nvidia. pressure for the s&p and nasdaq. that was the biggest loss we have seen for the month of may if you look at treasury yields this morning, you will see the

10-year yield at 4.47. a lot of questions where the movement will be next and if we have seen the height of rates or not. that's been a big question part of it weighing on the broader markets yesterday. >> meanwhile, boeing's slide after the cfo spoke yesterday and said the company would burn through cash this year the delivery of planes will not increase from the first quarter to the second quarter as they deal with tproduction challenge. the price of ethereum pulling back after the run-up this week. the si.e.c. approved the rule change to pave the way for etfs that buy and hold ether. specifically, the s.e.c. order approves applications from various exchange to list eight ether funds. the order does not approve the funds or set a date for the etfs to start trading issuers are awaiting approval from the s.e.c. for the funds

and it is unclear how long the process will take. this has been the week this was a buy the rumor and maybe not sell the news. >> that's most of it >> ethereum is down 2%. look at bitcoin over this week it has been pretty strong over the week the year to date is up 58% this morning, sitting at $67,000. we had been as high as 71,000 in the last several days. in the meantime, let's talk about paris, if we could, for judgment a moment. >> you sound wistful >> yesterday n, in paris, elon musk speaking out. he doesn't support the announcement of the tariffs on chinese-made electric vehicles. >> neither tesla nor i asked for the tariffs. in fact, i was surprised when they were announced. you know, tesla competes quite

well in the market in china with no tariffs and no differential support. so, in general, i'm in favor of no tariffs i'm also in favor of no tax incentives for evs, but provided there are also the tax inc incentives for oil and gas must also be eliminated i'm in favor of no tariffs and no incentives for electric vehicles or for oil and gas. >> a little complicated. he is now in a position where the truth is he doesn't need the tariffs or san berubsubsidies. there was a time when he a advocated for them the whole industry needed them there was this whole fight over the an idea subsidies given to gm and ford and others that

would set up that tesla would not be eligible for them >> i agree with the take generally. not having subsidies out there or not having tariffs is the more accommodative way of looking at things. neither candidate running for office will strip away all tariffs. >> the other piece of this, if you remember, he made a comment two months ago and we can grab the tape, where he said effectively that if you don't have tariffs on vehicles in the chinese evs into the u.s. -- he wasn't making a statement about his vehicles he said these are better cars and they are making them more cheaply and the entire industry in the u.s. would be completely ruined >> this was also before he went to china he just went to china and had a good meeting there china is a big market for him. i do think he probably is speaking openly when he says it.

>> i believe he believes what he is saying. i'm not discounting what he is saying >> it is an evolving conversation the bloomberg reporting that musk's spacex is in talks with sealing shares the tender offer would allow shares being sold for $108 to $110 apiece. musk said they had not need for additional capital we do liquidity rounds every six months for employees and investors. i don't think this would impact, per se, but folks like ron barron of barron funds and other publicly traded funds have an interest in spacex finally, musk's a.i. start up is

seeking so raise $6 billion in the funding backed by horowitz it includes commitments from capital and tribe capital and value the startup at $18 billion. this is a long gentlestating situation where he was looking for the money and go online and say he is not looking for the money. it appears we are closer to that the one other piece of it is on the xai side and if folks invested in x, may get a piece of xai that might be, because they are training on stuff that's on twitter, whether that actually might be a vehicle for them to get their money back if not more we all talked about the valuation. >> rather than paying them to be trained on it, you get a cut >> you get a slice of that company and if you thought to yourself, okay we paid $44 billion for the

company. today, the company is worth 50% of that? less than 50%? this may be the vehicle, it there is a vehicle to get you there. >> being on that train without giving a value. >> if you believe xai is worth more than 1 billion dollars? it is a way to recognize the value that they may have lost. in the meantime, a landmark deal that could change college athletics. the ncaa and the power five have agreed to pay college athletes as part of the anti-trust settlement that includes 2$2.7 billion in back pay dating back to 2016 and p paves the way to pay up to $20 million a year to players. the deal still has to be approved by the federal judge overseeing the case. revenue sharing could start as

soon as the fall of 2025 obviously, this is sparking difficult decisions for some schools about how to value sports and teams that don't generate revenue and how to split that money it may get more complicated before it gets calmer. we will talk much more about this with joe moglia the former td ameritrade ceo. the burger wars are heating up burger king offering a $5 meal deal with the sandwich and nuggets and fries and a drink. it matches the offering from mcdonald's the burger king promotion is expected to launch before the mcdonald's promotion coca-cola kicked in to make it more appealing to the franchisees. >> that's an interesting

relationship. >> right we have more on "squawk box. big lthree hours. when we come back, the inflation debate at fed. we will talk about the renewed concerns of the prices and how it impacts rates. later, nvidia's ceo jumping three spots yesterday on the billionaires list. "squawk box" returns from times square after ts. hi with gold and copper prices pushing towards all time highs, us gold corp. offers investors leverage to both gold and copper at its project, and mining friendly wyoming. u.s. gold corp has a reserve of almost 1.5 million ounces of gold equivalents. permits to mine zero debt with only 10.73 million shares

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welcome back to "squawk box" on this friday morning for insight on the fed's fight on inflation, let's bring in the fixed forecast portfolio manager. >> good morning. >> it is the front page of the "ft. janet yellen saying the u.s. is open to further rate rises to quell inflation. is this going to get better? >> i think it is getting better. it getting better slowly i look at the inflation numbers. they declined fast at the end of last year. that progress stalled in the first quarter. we feel strongly you shouldn't extrapolate from that. if you see the last inflation report, that did slow i don't k k knowdown better than the .4% in the first quarter. the other thing i would highlight is if you look how concentrated that number is, 3.6% we are seeing in core cpi

and. 3.3% of that is coming from shelter and cars they are lagging home prices have stalled and that is the high frequency press measures of rents are slowing down it is happening slowly the fed is trying to be patient. i think the market got a little too nervous around the minutes after that meeting, we had a payroll report that suggested growth moderation. we had an inflation number showing it i think the market is getting nervous around fed rate cuts it's going to happen by the end of the year where they will be on to cutting rates because they will look at the an come lay tan come laytive process >> you have your boss, jamie dimon, talking bengal the

comments on air and you have firms like morgan stanley which thinks the whole thing will roll over in the crazy way you have seen who is right >> i think the market is in the soft landing. >> your boss or not? >> your boss or morgan stanley >> when jamie thinks about the entire distribution of outcomes, he has to look at the outcome where if inflation doesn't slowdown, what happens i think the soft landing is predicated on the fed starting to ease off. it comes down to the monetary policy being restrictive this is when we look to the fed minutes and the fed is debating it >> it is likely it is not restrict restrictive. >> the tricky part is it is restrictive for some parts of the economy and not restrictive for other parts. >> there was a good piece by ben emons yesterday laying this out

which was a mic microcosm into s the fed minutes reflected that to some extent there are area where is there's a whole lot of demand and lot of money spent. they can't cut rates right now because you will see inflation which continues to push higher by big tech companies, but government, too. you have the areas if they don't get lower rates will be in trouble. commercial real estate and some regional banks which have gotten into trouble the fed is dealing with the tale of two cities and which side do you pay attention to first >> when you look at the starting point and 5.5% on the fund rate or 10-year at 4.5, you can take

your foot off the pedal. the market is pricing in 4%. that's the point where you start to ease off. there are cracks they don't want the cracks to become recession. >> how much are the equity markets keying off what is happening with the fed we used to be fed crazy. now we're nvidia crazy >> i think the part of the equity market has to look at fundamentals when you have high cost of capital, you have to look at the business model and balance sheet t. is right for the free market to look at that. if tinterest rates don't come down, do they pull back? we are seeing some signs of that does consumer confidence slow down >> that is a good thing. it is more of the soft landing >> i think so slowing is good, but too much slowing and it starts to become the vicious

cycle. >> we haven't seen the a.i. productivity boom you are talking about. if that is the case, it helps the inflation story. >> we have seen the significant labor supply in the last couple years. you are getting 200,000 payroll growth per month the fed can start to cut rates slowly they can be patient. you are looking at wages if wages are decelerating, it is hard to see how companies have pricing power. >> priya, thank you. when we come back, nvidia's ceo jumping three spots on the list of the world's richest people yesterday this is pretty amazing and watching what he has done. he owns 3% of the company. details next. later, we will talk to two social media influencers who are working to use their platform for good to advocate for people

with special needs i love these guys. i follow them myself nick and gabe are going to be joining us later this hour they're amazing. i think you want to learn more about their story. we will talk about the positive sides of siamea.ocl di "squawk box" will be right back. you know 's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. boring makes vacations happen, early retirements possible, and startups start up. because it's smart, dependable, and steady. all words you want from your bank. for nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled... which is pretty un-boring if you think about it.

time for the executive edge. the surge in nvidia shares is cat puting jensen huang to the third richest person in the

world. he is richer than the walmart founding family. huang co-founded nvidia in 1993. he has served as the ceo since and has built an amazing company. he owns a 3.5% stake in nvidia. the number of 401(k) accounts at fidelity with balances of $1 b $1 million or is up 43% since march of 2023. the average balance rose to $126,000 that is skewed by large account balances the median average is $29,000. i read a fascinating article with the great mistake in our country. >> why >> larry fink has talked about it he is an advocate for 401(k)

when you look at the retirement savings today compared to 20 or 30 years ago from pensions >> we can't afford to do pensions >> he said we can't afford to do pension funds, but it left a spiraling problem of retirees. >> 401(k) is the solution to part of that the companies -- >> the question is if there is a different way to do it and if you can go back in time -- i don't know send the hate my way >> i remember losing a couple of my pensions over time where they got rid of them. the companies say we cannot have this open-ended. people are living longer they were worn out. >> the conundrum is employees are not investing early enough some companies are not matching enough we will have a retirement crisis in the country you are seeing it play out

there are a lot of folks watching right now who don't have all of the money they thought they would have when they retire. >> one thing that is great a pat pra paternalistic way when they made it the most complicated way to opt out of it. that was a great thing for me. i would not have done it that way when i was that young. >> there are places like australia where you are forced into it. you are in a forced savings program. that'sing so something larryfins advocated for. as we go to break, dominic chu will have the latest as we head to break, he eris a

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good morning welcome back to "squawk box" here on cnbc we are live at the nasdaq market site in times square you are seeing the dow up 32 the s&p 5500 looking to open 5 points higher. in the meantime, how do the homeowners fit into the economy? we have dominic chu with the sectornomics >> they are part of the particular sector in consumer discretion we know they have been on a rocket run with the shortage ofy if you look at the ticker itb it is up 40% in the last year much of the housing picture is correlated with the idea of interest rates and where they are and mortgage rates cnbc crunched the numbers of the

correlation with the particular etf, home construction etf and one etf that tracks the seven-to-ten year. things are more correlated to what happens with interest rates. as the value of bonds goes up and interest rates go down, we do tend to see the value of home construction etfs go higher. the notable part on the chart, we are at the highest correlation, trading relationship with the housing etfs and longer-to-medium term bond etfs. as for the stocks doing well in the sfpan, look at the names lennar and dr horton which have done really well if the rates picture is key to the housing trade going forward and inventory is scarce, home builders could have room to run. it is part of the consumer

disc discretionary picture. we talk about the names in the retail space with the tapestry and ralph lauren, but housing construction is part of the picture. back to you. >> dom, thank you for that have a great weekend if we don't see you again. we will see you -- i'll see you at the top of the hour i can wish you a great weekend later. we are watching shares of gildan active wear the 12-person board resigned immediately. looking at eight board nominees from browning west restoring the former cfo who had been ousted by the board it is the second massive resignation in the board sroom gildan is a supplier for companies including amazon and

target that is a wild drama it could be a soap open rachlt. when we come back, we will talk to two social media influencers working on the platform to bring positive change you can follow us on your favorite podcast app and listen 'rcongig bk. wee mi rhtac >> announcer: sectornomics is sponsored by sector spdr etfs.

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welcome back we have something you don't often see on social media these days that is positivity while congress is addressing safety online, there are corners of the internet where good things are happening and that's

one of the things we want to highlight. one involves nick and gabe sapphire who has down's syndrome they have gone viral for sharing love and positivity. they amassed 10 million followers and advocates for people with special needs. joining us right now is nick and gabe sapphire. thank you, guys. i have been watching you for a long time and have been following. i'm really, really thrilled to have you here. you make me smile just about every day. >> thank you, becky. we're glad to be here. >> yeah. >> andrew and i have been looking at a lot of things that happen online. i'm not always thrilled with the things i see you guys are a real bright spot. i wanted to take the time to talk about what you do nick, let's start with you >> sure. >> how do you come up with the idea of the following? you have 10 million followers. >> thank you beyond what we do on social

media, i'm an actor. in 2020, when we lived in brooklyn, new york and went into lockdown at the start of the pandemic, i wanted a creative outlet and posting random videos that i thought were funny at the time one day, i posted a video, we posted a video of sharing every day brother ly shenanigans it took off. as far as japan and kenya and indonesia and it really moved across the world with a common message of love, compassion and hope and all the while sharing ever day life with me and my brother and my family. >> gabe, what do you like about doing the videos 12k3w . >> what do you like doing? you like doing the videos with the family >> yeah. >> your favorite thing is twinning with big brother?

and our sister >> kyra. >> i have the same shirt how best can we do it? literally, if we are not family. >> i'm going to work >> he's excited for his family vacation. >> we're all excited about the family vacation. >> he will come home from school and he will see what i'm wearing. if it is not twinning, he said what he'll go up to his room to put on whatever the matching outfit is there is our video for the day. >> when did you decide there was a pivot point and you will do this and do it regularly >> i think i was a personal trainer and we went into lockdown and when it came out of it, it had become something so much larger than myself. i felt like such a sense of purpose aligned with what i wanted to doing for a living, bt

for my brother and the community. >> the decision you had to make in your family of do we want to put the videos out and what kind of videos? you are actually doing this on a regular basis. >> a family business >> the whole group. >> you guys make money off this. >> yeah. we're on tiktok, youtube, facebook and instagram all of the accounts are monetized. it involves gabe and i >> and our mom >> this is how we make our living we decided two years ago to go all-in on it and devote to it full-time. it led to many opportunities for both of us and our family. >> i have to say you are dancing and you're at the party. i have to say, i have a daughter with special needs for me, it is a great place and i'm proud of the work you guys are doing to raise awareness

those are things that social media can do that would not exist without it i'm not always a fan of social media. child trafficking and a lot of places i think it is a terrible place. for this, i think it is wonderful. i want to make sure we highlight some of the usualissues what you are doing to raise awareness is amazing >> thank you i'm certainly not an expert on everything over what is happening in congress. i would say at least from our end, you know, and from the creator standpoint, we would no be where we are without it >> let's talk about tiktok your biggest following on tiktok 7 million viewers there. what happens if congress goes through with the law that it passed and states tiktok has to be sold or shutdown if tiktok stays on this path and can't sell >> i don't know personally enough from my end in terms from

their end. >> what would it mean for syou? >> it would mean half of our followers. >> we have a lot of folks interested in the economics of all this >> sure. >> is there more money in tiktok i assume it is youtube >> youtube and facebook. >> you have a bigger following on tiktok? >> yeah. tiktok, from the creditor standpoint, released a program with a one-minute plus video that was monetized the way it wasn't before. that is creator >> you have youtube? >> youtube and instagram are the lower-end of the follower account. that is the majority. >> how much do you find that tiktok is leading people to those platforms where you monetize them? i heard from a lot of creditors

that say tiktok goes away and it doesn't hurt me economically it may in some other way i haven't thought of because it is a feeder of mind share to other places. >> you know, i would say from our end, we try to cross the platforms when it comes to posting where i make sure to cross the traffic from one platform to the other. in a lot of ways, our following is across all of the others and they know what platforms we're on there hasn't been anything on my end where i found tiktok has led to certain things on youtube it is more so with tiktok being the separated one. the same content is across all of the platforms, but it is really for me posting >> is it more deals on the plat forms or separate sponsorship

deals? >> some through the platform >> advertising on the platform >> usually it is private brands. >> all private brands. >> on my end. >> they find you and seek you out? >> yeah. 90% of the time they reach out through instagram or through that capacity. it is all private brands >> your entire family is involved at this point what do you do i see your dad >> he's the cameraman. >> dad is the camera guy we have gabe and i in most of the content. we all come up with ideas in some capacity. our sister, kyra, who graduated college, edits our long-form videos for youtube and facebook. mom is part of everything. mom is the backbone of all of it yeah >> we want to thank you so much for coming in today, gabe. it has been a pleasure seeing

you. you are a superstar. we love having you here. >> thanks. i'm going to the party. >> you got dressed up. >> this is a morning party a little bit of a breakfast party. >> you can get your coffee >> thank you so much >> nick, thank you gabe, thank you. what you do is inspirational thank you. >> thank you >> and your brother. we're so happy to have you here. we'll continue to watch. when we come back, positive trial data from novo nordisk on the slowing of the progression of diabetic kidney disease "squawk box" will be right back. i think growing up on a small town on long island, i would never imagine i would run the iconic brand a brand that dressed 41 of 46

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welcome back to "squawk box. news from novo nordisk the company is saying ozempic slowed the progression of diabetic kidney disease. the drug cut the combined risk of the kidney complications by 24%. the trial was stopped after the monitoring committee monitored

the data and viewed it and cleared. add this to the win pile >> the benefits are clear. they don't want to keep people on a trial >> they want people to do it >> they want everybody to benefit. the big issue this is and i heard from a few people who reached out, people i don't know reached out, saying the problem is the people using these drugs for, you know, cosmetic reasons because they want to look better or feel better in their jeans, steals the supply from people who cannot get access to it. >> that is the issue at this moment given the production issues we talked about this for better or worse, we are all on some version of this at some point. f f former trump adviser peter nava navarro is speaking out from prison he tells the journal he has no regrets and is not looking for a

pardon if trump returns to the white house. he is two months into the four-month sentence. he wrote in part, i have no regrets. i didn't choose this fight this fight choose me as for what role navarro would play in the second trump not loa job, but would consider one if, quote, the boss needs me navarro has a book coming out with a release due around the gop convention this summer right about the time he'll be coming out of prison and sounds like the boss is still the boss. >> when we come back, we're going to dig through this week's big tech movers, including a near 13% jump for nvidia shares. that's next. a little later this morning, the amateur era of college sports is over we will talk to joe moglia about the agreement that paves the way for college athletes to be paid by their universities. "squawk x"ilbeig bk.bo wl rhtac dad, don't forget about my new cleats. sweetie, i can't make it to dick's this week. have you heard of dicks.com?

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100% so far this year, making it pretty challenging for other tech stocks to keep up joining us right now to talk about it is dan flax, senior research analyst dan, what do you think this is a situation where nvidia has shown so much more growth and yet people say that it is still a cheap stock when you look at the earnings that have gone up too. >> good morning, becky it is being driven by the innovation and the execution on the product cycles, and so, for example, we'll see that blackwell platform really begin to ramp later this year and drive strong growth in 2025. but what i think the big story

here is really this broadening beyond just a cloud company into a lot of different industries. automotive, healthcare, manufacturing, think about drug discovery, digital twins for manufacturing and they along with their partners are helping to revolutionize and transform parts of the economy, and so, we continue to like the growth story here, and the key at the -- key part of it is they're really empowering developers to keep building on top of the platform >> so, the nvidia halo that we have talked about so much, how lasting is that? how long do you kind of see this holding out and where do you look when you're looking to kind of trade down the line >> we're looking very carefully at each one of their products and their products cycles. so, we like this name as you know for a long time and we're long-term shareholders what has happened with nvidia is that they have transformed, their history is as a gaming

company, and the technology and what they have been able to do in the data centers has transformed the company, but it is, of course, transformed the tech industry and is transforming parts of the economy. so, we continue to monitor it carefully, the competitive landscape remains fierce and when we think about nvidia or other technology companies, it really is this ability to keep innovating and pushing on the product cycles they have to extend into new areas, they have to take significant risk, but if they can do that successfully, most of the time, it drives strong revenue and free cash flow growth >> so, where do you expect the stock is headed? >> i think the stock can head substantially higher, becky, over the next one to two years i can't give you a specific price target what i will say is that you have a data center business approaching $100 billion that i think can sustain healthy double digit growth over the next few years. sure, the quarters will be

lumpy, there are cyclical dynamics that impact nvidia like others, but if they're able to do that, i think over time this can create significant additional shareholder value from current levels. >> you say that you also see value in a lot of these other tech stocks, even if it is not going to be quite the same as what you've seen in nvidia you're citing alphabet, amazon, apple, cisco, microsoft, motorola and qualcomm. let's run through some of these. alphabet, what's your take >> sure, we're seeing them capitalize on generative a.i we have seen in the last couple of weeks that they're transforming search, they're creating more value for users on one side, advertisers on the other and i think the cloud platform is underappreciated amazon, they're continuing to redefine the consumer experience, aws, their cloud platform is healthy. microsoft, continued strong growth in azure, their platform. if i look at some other names, motorola solutions is an example, they're a leader in public safety and they have very strong growth prospects of areas

like video think about the command center and 911 centers, a lot of them can't receive text and video that whole area needs to get revolutionized and transformed and modernized qualcomm, they're a key enabler of intelligence connectivity and security in low power environments think about factories, cars, all of that will get connected and qualcomm really sits at the heart of that transformation cisco is a contrarian name we continue to like i think they're making good progress on embracing the cloud, transitioning to more software, more recurring revenue and we think the earnings over the next two to three years will be better than the market thinks. >> i don't think you mentioned apple. i know you like the stock, but it has struggled. >> absolutely. i'll absolutely hit on apple what we're going to see in the next few weeks and i think more so in september is that they're going to infuse more artificial intelligence or generative a.i. into the device. i think they'll begin to change the user experience, make the

device even more valuable. the key here, if we step back, is that, sure, the smartphone market is difficult, i expect concerns on china. but the install base is continuing to grow and you're seeing customers continue to mix to better and better devices, more pro and pro max. so you put the device business with services, mac, ipad and wearables will do well over the next 12 to 18 months and so that in my view will lead to better revenue growth later this year and into 2025. so we continue to like apple and, of course, their ecosystem, which we monitor closely, remains vibrant in my view >> dan, in the distant past, let's say six months ago, the technology sessions are tied to what we thought the fed was going to do. every time we thought the fed was going to cut rates, the tech stocks would cut off when we thought the fed was less likely to do it, they come back to earth that seems to have separated to some extent where people are

looking at this and saying there is going to be a lot of money that flows into a.i. regardless of what happens with the fed is that how you see things >> becky, i look closely at the innovation and the growth. even with the fed having raised rates significantly, even where they to raise rates a little bit more, these companies have sufficient capital, they generate strong free cash and in the case of alphabet or amazon, tens and tens of billions a year in capex and r&d some of the end markets, the consumer is impacted what i think the market is seeing is that in the second half of this decade, you're going to have a much more powerful set of growth drivers, which will lead to much stronger earnings and free cash flow, and that is what i think the market will focus on over the next several months and into next year >> great, dan, thank you for your time today. meantime, it is just about 7:00 a.m. right now on the east coast. you are watching "squawk box" right here on cnbc on this

friday morning i'm andrew ross sorkin with becky quick. joe is off today got a bunch of big stories to tell you about the first, elon musk speaking out at the viva tech conference in paris yesterday he said he doesn't support president biden's recent announcement on a tariff on chinese-made electric vehicles separately reports this morning that spacex is now in early talks to sell shares at a price that would value the space startup at roughly $200 billion. that's up from an $88 billion valuation, just six months ago and the s.e.c. is clearing the way for a batch of new etfs that deal directly in ethereum, but trading expected to begin later this year. products -- through products offered by bloackrock, fidelity invest and more. we'll have more with jay clayton in a few minutes a landmark deal that could forever change college athletics. the ncaa and the five power conferences agreed to pay college athletes as part of a massive antitrust settlement it will include $2.7 billion in

back pay damages to athletes dating back to 2016 and it also paves the way for revenue sharing plan that will allow each school from the five major conferences to pay up to $20 million per year to players. let's get a check on the futures on this friday morning right now, dow futures up by 26 points s&p futures up by 12 the nasdaq up by 47. some advances, but pretty modest advances looking at yesterday's gains. remember, yesterday the dow saw its biggest drop in about a year, decline of 600 points. get over to dom chu, a look at this morning's premarket movers. dom, a bit of an up and down week this week. >> it certainly has been we're going to start with the massive drop in the dow yesterday and big reason why and that is shaky starts for boeing yesterday. the aerospace and industrial giant is up just two-thirds of 1%, 12,000 shares of trading volume

that drop was triggered by comments made by boeing chief financial officer brian west at the wolf research global transportation and industrials conference west said he now expects negative free cash flow for the year after forecasting positive free cash flow in the low single digits, billions, about a month ago. he added deliveries of new planes will not improve sequentially in the second quarter from the first quarter, so those comments drove a lot of the downside for not just boeing, but the dow overall. then shares of workday, shares down over 12% now, around 20,000 shares of volume this is the provider of cloud-based human resources and finance platforms for businesses it actually reported better than expected quarterly profits and revenues, but in what has been the case for much of this earnings season, the forecast was key and the forecast was not positively received. its subscription revenue guidance fell short of estimates and shares are down 12%. a check on the most important stock of the week, the season, perhaps the year or even longer,

that's nvidia, the shares right now up fractionally, now up about a percent, following a quarter million shares of volume, massive y ive move in yesterday's session to record highs. the chip giant, the most valuable in the world, and has been for quite some time, doesn't show any signs of s slowing momentum we'll see if this cools off. back over to you. >> it is a battle we have been watching thank you. we'll see you in a little bit. we have a couple more stocks to watch this morning. shares of ross stores are higher h earnings and revenue beating expectations, same store sales fell short of expectations the company raising its full year profit forecast and reiterating its guidance for comp sales you see thatstock right now up by about 8%. starwood capital tightening limits on shareholders ability to pull money from its real estate income trust. the $10 billion investment vehicle redemption requests were mounting but they urged

investors to wait and not force the sale of properties at the company's many assets and what he thinks are low prices right now. starwood will cut its management fees while the tighter controls are in place, which the firm expects to be six to 12 months s starwood's decision could set off other moves by other investors who lose patience waiting for the fed to cut rates and real estate to rebound they're in a tough position here, because they have now taken out loans to pay people back they're basically stretched to the absolute limit we talked about the blackstone real estate fund, they put up gates at one point, but they're in a much better position today. this is now the fund that is, i hate to say it, in trouble and i think there is a real question mark if there is a rush for the gates and it sounds like there is, the only way that this ends well, if it can end well, would be for them to be able to sell some of the assets and not

turn out to be a fire sale, which i think is almost impossible. >> and, by the way, blackstone and this reit, the two biggest reits out there. number one and number two. >> the two biggest -- semiliquid reits. there is a whole bunch of regular reits and obviously not everybody can be invested in these funds, so it is not just like a public thing that anybody can go do. when we come back, the s.e.c. taking initial steps for its etf. jay clayton discusses that and much more. then the decision that paves the way to paying college athletes joe moglia, who is head football coach at coastal carolina, weighing in on that and more we'll talk about this later in the hour we're coming right back.

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move with xfinity. welcome back to "squawk box. the s.e.c. has approved a rule that could pave the way for spot ether etfs joining to discuss this and more, jay clayton, former s.e.c. chairman, cnbc contributor and both of us, along with becky, were scratching our heads a little bit about what we're seeing in terms of what is being approved and what is not being approved and how this could even work. >> there is two pieces. >> lay it out. >> two pieces of approval for one of these types of products there is the listing approval, which is what happened yesterday. and then there is the approval of the product itself, which is still pending. that's call the registration statement. that we need to find out this product is eligible for listing, but will not actually be trading until that registration statement it is a step -- it is a step in the direction. >> does it mean it is

inevitable >> i think it means it is inevitable, we went through this same process with the bitcoin product, where almost all or all of the questions were decided. the question decided yesterday, is that the market is efficacious enough for this product to be listed on the exchange. >> let me ask you a question there are other questions out there. >> talk about those questions, but as you know, gary gensler and the s.e.c. went kicking and screaming to allow the bitcoin etf. and only did so because it judged effectively said you have to this is different. so what is different this time >> what is different this time is there was a settled issue of whether the underlier, bitcoin, here ethereum, was a security or not, offer transactions where securities transactions. the s.e.c. has not definitively said, so up until now, they still haven't definitively said that underlying transactions in

ethereum are not securities transactions. >> is part of this because of what congress just did this week, to pass this first crypto bill and basically say it is going to be the cftc that is overseeing all of this is this putting another chip on the table saying, wait a second, we want to claim our legal framework for this >> my view, and my view for a long time in this program, is that progress, development, whatever you want to call it in this space, was always going to be inincremental what did they do this week in congress or the past couple of weeks? they made more clarity around custody and cost of providing custody services for digital assets because they weren't happy with the way the s.e.c. had done it now, with this bill, they're saying, we want a path for products like ethereum, other digital assets, to be able to trade like securities. and whether they are classified as commodities or classified as securities, we, congress, want to see that path that's what you're seeing play out. >> would you allow this yourself you didn't when you were the head of the s.e.c. >> the question that was a

problem for me, and i said this many times before, was the market efficacious enough. was that spot market, and it developed remarkably over time, where people are very confident that trading is, you know -- >> you might have been able to get your head around it, if you were in the position today >> yeah. i can get my head around it. i'm interested to see what the conditions will be for the ethereum exchange traded product when it actually gets there. what is it that you have to show to prove that ethereum is not a security or if it is a security, how it works >> part of the thing and we used to talk about it, used to use this analogy about broadway tickets, remember? you want to tell the audience? i don't know if that piece of it has changed at all. >> well, this is -- this is how you tell the difference between something that is a security and then becomes a commodity picture a play, play hasn't started, hasn't started, i come to you and say, you know what, i'm going to put this on, i'm

going to get a great composer, great producer, great -- a venue, tell you what, give me your money and i'll give you tickets for that play when it is on you're making an investment, you're buying a security, those tickets represent a security transaction. you're hoping that my efforts deliver a great return to you. six years later, the play is a huge success, somebody walks up to the box office, buys the same ticket to the the same show, that's just a ticket it is a commodity, it is not an investment in the future of the show that's how something that is used to build out a network, using a token to build out a network and say if this network gets built out, this token will be worth a lot of money is a security, when the network is built out, the token is just for use on the network. >> i want to switch gears. >> makes sense >> for me it makes sense, it is a great analogy, thank you there are people who debate that analogy with you, you've seen that probably out there. i want to switch gears because becky and i were debating an article, i believe in "the new york times" last week, called --

how the 401(k)s have been a great failure for america and we're in a retirement crisis in large part because 401(k)s have not delivered on the promise that they were supposed to and what we should do about it now first of all, do you agree with that premise that the 401(k) has been a failure >> i don't agree that it has been a failure i agree it is no longer adequate for what we have in society. we have had a lot of jobs and when you'r so, is it the right tool for today? no, another reason it is not the right tool for today, you're limited, very limited in your investments. so you go back to my tenure at the s.e.c., one thing i feel is unfinished business is fixing this now, it requires the department of labor and the s.e.c., but we need to fix it.

>> how much of the problem, the underlying problem is that we have put the burden on the savings component on the individual as opposed to either the institution they work for or some kind of -- maybe regulatory issue, but effectively a forced savings program, because we have too many americans who have not saved early, when they should have been saving, for the same reason you say they're going to be in the job for two or three years, the match is what it is, they want as much cash to take home as possible, so maybe they're not going to put all the money in that they should. we create incentives, but people don't do it, and then they hit the age of 62, 65 years old -- >> what you're talking about is another security plan. >> i would do something -- i would take a success australia is a huge success. >> that's what we're talking about. >> so, basically, look at it like this, forced contributions into your 401(k) from your employer, you know, pick a number, 3%, 4%, 5%, whatever it is and the products that are in

there, they should look like a well managed pension fund, not just everybody levered to six stocks in the s&p 500, and it should stay in there if we got people started that way, at age 25, we would solve a problem. >> what you're missing is the idea that a lot of people don't even work for a company. if you have contract work situation -- like 2%, 3%, 4%. that's how they start. >> why don't you start with something simple, you have to opt out of the go for mandatory, mandatory. >> we're talking about mandatory

system acrose country. >> can't top out. >> you can't opt out, and you have to do it and part of your income -- this is what we're talking about, for savings in australia -- i think you and i are on the same page. >> we need to do it. people are living into the 80s and 90s and we're going to have retirement crisis. >> you already have a situation where people at the bottom rungs, the lower rungs feel like they can't get by, they can't pay their groceries every week and you're going to say, we're going to take 10% more away from you or tell their employer, if they don't put x amount into the paycheck every time, that, you know, they can't have them as employees? i think you ignore the unintended consequences. are there problems with this, yes? do you start a country have a social security crisis, we have a retirement crisis, and people who can't -- who feel they can't buy certain things when they're younger

clearly can't handle any of the costs when they're older. >> i'm not saying to change social security. but if 25 years ago we had taken 25% of social security contributions and done this -- >> that's a different story. >> -- we would not have a retirement crisis. >> that's a problem that congress has dealt with. you can't even get -- the people who are leading the country to get on board with this >> can't be a more bipartisan issue than retirement security we need to move on this. we need to make people's 401(k)s look like well managed pension funds. >> i think making them portable would go a huge step make it connected to the person, not connected necessarily to the employer be able to take and move it with you everywhere you go, there are a lot of things that could be done before you say -- >> look, you know i'm an incrementalist let's get going. >> things that can actually happen today. >> yes >> by the way, a lot of that could be done on a voluntary basis and the blackrocks of the world and the failures of the

world and the vanguards could do that and just like this, we wouldn't have to have -- we don't need washington to do this, they could say -- they could do this and part of it is employers. >> the department of labor, the s.e.c. could get together and facilitate this with very -- with very little friction. >> okay. >> jay clayton, we solved retirement on a friday morning ahead of, you know, memorial weekend. appreciate it. nice to see you. thanks when we come back, indivier provides life transforming treatments to those suffering from opioid addiction and menta illness. we'll talk treatments, regulations and their upcoming listing on the nasdaq. and later, former td ameritrade ceo and former head football coach of coastal carolina joe moglia will join us for a wide ranging interview "squawk box" will be right back. >> announcer: time now for today's aflac trivia question.

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>> announcer: now the answer to today's aflac trivia question. in what year was the nation's firstmemorial day.

the answer, 1868, it was officially recognized as a federal holiday in 1971. "squawk box," we are watching shares of gildon active wear, the entire board resigned effective immediately, this is quite the corporate soap opera they handed control to an eight-board nominees from activist brown and west. the move restored the former ceo glen chaminy to the company he founded. he was ousted by the board in december it is the second mass resignation that the board has -- board room has undergone. earlier this year, five directors stepped down as part of a board, quote, refreshment gildan is a supplier for major u.s. retailers and companies including amazon and target. so this sounds like another "as the world turns" over there. the king is ready to take on the clown. burger king is preparing to offer a $5 value meal that

includes a choice of sandwich with nuggets, fries and a drink. that matches the reported offering from mcdonald's, but the burger king promotion is expected to launch before mcdonald's promotion kicks off on june 25th sources told cnbc that coca-cola actually kicked in for marketing funds to make the mcdonald's deal more appealing to the company's franchisees and if you're looking at those shares, yes, it has been a little bit of a rough year to date for both companies. coming up after this, we got an interesting story for you, the ceo of specialty pharmaceutical company indivior will be joining us, talking about treatments for opioid addictions and so many other things check out the futures now after the dow posted its worst session since march of last year a big week "squawk box" returns after this. (♪♪) (♪♪)

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welcome back to "squawk box. our next guest's company is known as the largest addiction treatment company in the united states want to welcome in indiffer ceo mark crossley, their primary share listing is moving to the

nasdaq while we're sitting here right now. let's talk about what the company does for those who don't know we talk about addiction, opioid addiction is the primary piece of this company at this point. but you're looking at all sorts of addictions. >> absolutely, andrew. we were founded to help people suffering with opioid use disorder and had a series of innovations in medications on blockbuster drug out on the market, once monthly opioid use disorder we recently expanded across the continuum of care. we have a rescue medication out there specifically designated for high powered synthetic opioids. it is a different active and we have a pipeline to deal with other areas of addiction. >> when do people take that? >> people take that once they have been in an accidental overdose for opioids >> what does that drug cost? >> that drug is $72. >> it is not -- it is not an incredible crazy number. >> no, no, it's not. and i think what you see out there is the idea when you're

rescuing someone that has overdosed from opioids is the speed at which you rescue them is key and now it is incredibly fact acting and very high powered so it gets people back very fast. >> what are you seeing interms of usage >> we're in the very early stages we just launched in september. and the way the rules work is you have to do a bunch of policy work to be able to shift from the current paradigm of treatment, naloxone-based products, to allow for fda-approved products. we're in that process. we changed standing orders across states, the funding is in line to be for all fda-approved and we have early adopters and the early results have been very positive on average, one dose per save has been happening in the early adopters versus when this current standard of care is 35. >> where do you think we are in the opioid addiction crisis in

this country >> i would like to say that we're making headway wit, but t statistics are in a rough spot. there is 85,000 a year, it is the single largest cause of death for people 18 to 45. when you look at people that are addicted to opioids, you only have a little bit less than two in ten people are actually accessing treatment. so, you know, awareness, reduction of stigma, breaking down barriers is really key for the treatments and then having treatments that work, you know, taking -- helping with their choices. >> are you seeing across the country, just spread across the country, are there regional pockets where you think it is much more concentrated >> we're seeing this as a universal issue, and i think one of the things that is a positive in the space and where we're going to progress is it is bipartisan so it is on both sides of the aisle, folks have this with all of their constituents and they're trying to find ways to

solve. >> here is a semipolitical question if, in fact, somehow we were able to grapple with the opioid crisis in this country, that would be bad for your company. >> listen, i think if you were to crack it, this would be a multiyear sort of solution, and for us, the idea is you get people in treatment, you help them stay in recovery and regain their life. >> one of the things you're looking at, though, which by the way is not going away, maybe a burgeoning business for you is thinking about cannabis and the addiction market or the addiction of cannabis. there is a big debate about whether cannabis unto itself is addictive at all, though how are you playing this >> cannabis, alcohol, what i tend to refer to as the normalized areas of addiction, people believe they're safe, they're legal, in many states, and the u.s. government is looking to take it from schedule one to schedule three. but when used in excess, it causes issues and causes addiction. we can all say we know people that use alcohol in excess and they need help to get off of

that pharmacological interventions. same thing in cannabis today on average, over 20%, and then you got high doses like tinctures, gummies, over 70% those high thc levels are incredibly adetedictive, they cs psychosis, for the people that are recreationally using it -- >> is legalization a good move then >> it has to do with how you're using this. >> if tch levels have gone up, even while we're supposedly regulating this and trying to make a better control of it, i mean, you can't walk down the streets of new york city without getting a contact high >> no, i totally agree i think this is where it comes to how is the drug going to be used as it is legalized. if it is used. >> what are you working on as it relates to this. >> we have a phase 2b asset. it is to help with cannabis use disorder it works on the same receptor as the cannabis it is a specific signaling, when

thc enters the blood stream, goes to the receptor, it blocks the receptor and prevents the high that will look to bring that into phase three, if the results come out positive in q3 next year in 2025 >> which means what, though? you have to take this to say, okay, i'm not going to get the contact high and then eventually i stop taking it or -- >> that's exactly it, becky. >> if i want to get high, i'll stop taking your drug? >> the thing is what you have now is a number of people coming forward with this going to their physicians saying, i am addicted to cannabis, i'm using it heavily, many days a week, and i can't stop. >> but is it a shot you give me and it lasts or something that i have to personally take myself -- >> it is an oral dose, every day. >> let me ask you a separate question, we talk virtually every day, every hour about glp-1 medications for weight loss a lot of people are talking about their impact on addiction. and on curbing addictive behavior on folks who are taking it who don't want to drink

alcohol, don't want to take drugs. what do you make of the success of these drugs and does that represent competition to you ultimately i don't know if it has any impact on opioid addictions or things like that, but maybe it would. >> we're seeing some of those early signs or signals that there is a lot more research that has to be done on how optimal it is for those. those have been specifically designed for diabetes and weight loss and you're getting some additional signals the brain is complex, and so as you hit a receptor and influence others, we pick the specific molecules that we're using, the mechanisms of action because we think they're optimized for opioid use disorder, cannabis use disorder and alcohol use disorder. >> you don't think there will be a one size fits all that is going to cut down on addictive behavior, those folks who want to have a little bit more discipline in their life than they do? >> maybe if it is someone looking for a little more discipline than alcohol use, but people with moderate to severe

alcohol use, i don't know if you go to a glp-1. >> the odds of a recession, price cuts and what it could mean for the markets. later in the united states, suing to split up ticketmaster and live nation. we will speak to the doj's principal attorney general about the case "squawk box" will be right back. daughter: hey, dad. dad: hey, sweetheart. daughter: what are you doing? dad: i'm gonna clean the fence. daughter: it's a lot of fence. dad: you wanna help me? dad: aim at the wall, but get closer. daughter: (gasps) what the?! daughter: alright. dad: side to side. when you work with someone who knows a lot and cares even more... you can do this. ...you're unstoppable. (♪♪) wow... are you kidding me? you can do this. at truist, we believe the same is true for banking. tamra, izzy, and emma...

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not as bright as they had been a little bit ago the dow is basically flat right now after being up about 25 or 30 points earlier. s&p futures up by 10 the nasdaq up by 40. this comes a day after the dow suffered its worst session in more than a year yesterday so, for more on what's moving the markets right now, we want to bring in mimi duff, managing

director and adviser at gen trust. yesterday, the concern was that we may not see a rate cut until the very end of this year, if at all. and the market is kind of rethinking what that might mean. how do you feel about it >> i think if nothing else we can see things can change quickly in the beginning of the year we were priced for six, now here we are closing in on the middle of the year and to your point, one hike and it looks like december in terms of what is priced in i think going forward, it does seem like we're going to be in a period of interest rate divergence between the u.s., fed and some of the other central banks that are more further along the path of inflation fighting >> it sounds like, okay, that's a concern, yesterday we it see a big drop for all three of the major averages relative to what help done for this year, the market has taken this in stride and i think part of that has to be because of the

earnings keep coming in impressively strong. >> that's right. earnings beats were very solid in this first quarter. and i agree entirely that equity market has done its job well this year, despite having a bad day yesterday. >> so, what do you think kind of happens from here, especially when you get into the holiday season with a lot of people -- the summer holiday season with a lot of people leaving and taking off for the beaches and elsewhere? is this a situation where you expect more volatility or are people feeling pretty comfortable with where the markets are? >> we are especially second half of the year, as you're approaching the elections. we are looking for more volatility we have taken some chips off the table on the equity side, we think fixed income will perform better in a range of outcomes. if we see more of the same, you should be able to earn the yield and we think those yields will be well supported. on the other side, if the economy deteriorates, we think

they'll perform well too so, we have taken some chips off the equity table to allocate into an overweight in fixed income >> so, you've got a neutral stance when it comes to real assets, though >> yeah, we're fairly neutral. look, i think that we -- we're actually slightly underweight, but we continue to like uranium, that's traded very well over the past years we don't have strong conviction in that sector is how i would frame it. >> okay. what do you think in terms of a recession? this is getting kicked around too. you think we head into a recession this year at all >> well, we definitely over the coming year, i can't speak to '24, but over the coming year we have higher than the markets percentage chance of entering recession. given that so many consumers were able to refinance houses at very low interest rates, and on

the credit side very same situation, this rate cycle seems to be taking longer for the high interest rates to grip so, it is very difficult to time when the economy will slow, but we do have higher recession odds than the market is placing. >> okay. mimi, thank you. have a great weekend. >> thank you >> coming up in just a moment, we're going to talk about this, the amateur era of college sports, it is now officially over a landmark new deal setting up for universities to pay athletes directly joe moglia is going to join us next to discuss it all plus, record travel expected for memorial day weekend, what you'll be paying at the pump to get away in expectations for the summer travel season all straight ahead road warriors, come on back. 'lbealng about all of it right here on "squawk box" in just a moment. maybe rich is lest reaching a magic number...

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the ncaa approved a $2.8 billion settlement that will allow for the first time ever some players to be paid directly by their schools for playing sports the agreement allows d-1 schools to pay student athletes up to $20 million a year a final agreement is expected to take months to finalize. for more on this, we want to bring in joe moglia, former td ameritrade ceo and chairman and he's now the coastal carolina university chair of athletics and executive adviser to the president. he was the coach there too joe, thank you for being here. >> happy to be here, becky. >> i know you've been saying for a while that something had to happen, but now i look at this and i think, oh, my gosh, this seems like there is going to be a whole lot more noise before we figure out and see how things settle. >> i think you're 100% right i think the -- first of all, with regard to the settlement, the settlement lasts until 2034. if any of us were doing a settlement, $2.8 billion, we would like that to be the end of our liability. but there is still countersuits out there that are not part of

this so the ncaa liability continues to exist why would you do $2.8 billion deal if you still have liability? the answer is the power five conferences of the ncaa are concerned that if they don't do that deal, the actual liability could be $20 billion if it is $20 billion, that raises the issue with potentially the ncaa going bankrupt, that raises the issue as the ncaa too big to fail. a lot of the actual issues, structurally and philosophically -- >> just to explain what that liability is for, this is for athletes who say they were prevented from earning money going back to 2016 because the ncaa would not allow them to be paid for their performance on things >> correct >> what is so strange in this is that now you're going to be able to pay players and there are caps on some of these things, some players -- it is going to make crazy decisions for who gets paid who doesn't, and i think maybe the bigger question is what it means for other sports sports that aren't going to be able to pay their athletes, that

money is going to pay for the programs, the big moneymakers, other stuff that used to rely on the money coming from the programs or from the ncaa. they're in big trouble >> they are in trouble the power five conferences have a chance to vote on this the ncaa technically represented the rest of the conference another 90 conferences but they didn't really have a seat at the table. so the smaller conferences are not happy with that. and there is real concern that they're not going to be treated fairly, real concerns that institution may have to get rid of certain sports, that there are major issues that are associated with that one thing, though, we don't talk about too much is -- all the noise for the last three years about what is happening here with paying to play in the nil, how much talk have we heard about academics? >> none. >> eligibility so i think we all know the stat, 75% of the nba players and nfl players that retired after five years, they go broke that's nba and nfl players what kind of financial literacy is part of the life of an 18,

19, 20, 21-year-old kid to what extent might they be taken advantage of with regard to the agents, to what extent do academics matter to all of this? those are significant questions that are not being addressed so, philosophically, you either have -- you have an argument, i think, maybe not an maybe not an argument but an existentialist argument why universities exist and the part of sports within those universities they're over here, you have -- you have pure based capitalism where money's involved et cetera can the two exist together they can but not the way we're set up now. >> how would you do it >> i would -- i would have two distinct gruoups details behind this to spend time on as well. the simple version, a group that is professional. period end of story capitalism a group amateur. period that's taken care of by the

ncaa. >> wait. you mean different sports or -- >> no. could be different sports. >> everybody on football's has to be a pro or -- >> no. power five football, for example, definitely part of this keep it simple division i, professional have to break away from the ncaa have expert outside executive management, leadership i mentioned before here the nfl modeled themselves after college athletics, they'd go out of business bring people in from the nfl model yourselves after the pros, have collective bargains, salary caps it's professional -- >> oh, my. so sad as a fan. >> that's where we are now, division ii, that would be a little more sophisticated. amateur. amateur at -- stay with ncaa stay with ncaa amateurs do not get paid. none of those schools pay their players. none of those schools. can't get an.i.l. deals, want a deal have to be good enough to

be recruited not all of division i. >> wait. what you're talking about is basically taking, creating a mid-tier between college and the pros that didn't exist before? >> right almost like a aaa minor league team >> right now we have chaos within this. structural issues. how do you handle a transfer -- and -- >> and n.i.l. screwed this all up, and -- >> i can't believe n.i.l players deserve to get paid. issues when it first happened, the most significant thing to happen in the history of college sports period when this was announced over three years ago ncaa advocated their responsibility on this to me, a horrific example of leadership five decades in world of football, coaching, athletics, education as well as the business world i'm not seeing a greater example of a lack of leadership than what i saw when this happened there. college athletics supposed to

come in, fill in the void with a transition group hasn't happened yet. >> and coming off, salary, move from students -- even though pay now, any view this will accelerate them to go to pros immediately? >> a matter of money simple matter of money paid $5 million being quarterback at ohio state and i'm going to get -- $1 million going to the nfl, probably stay. >> right. >> if i could get $10 million going to nfl probably leave. that becomes more a matter of money than anything else. >> seems like a convoluted, complicated process setting up and an admission -- it's been a long time coming a lot of athletes have been abused over the years. that's the purpose of -- >> literally i agree with all that i think when this happened, again, there's no structure. no guidance. talked about it before put your name on a portal. by the way, 564,000 college athletes today last year only 17% of division i

athletes got n.i.l. money. average, 3,500 90%, not getting a dime. >> how is this going to change the economics of education, though because money that was essentially going to subsidize other athletics at the school and/or some form of academics at schools now has to get funneled to the players >> yes yes. so we do it this way have a professional group, radio it if it's capitalism, got to be a profitability associated with that right? individual players make money. university should make some money as well. if not, if they're not, not able to afford -- >> and how are you going to have a guy blocking for a quarterback making $5 million there on scholarship? at some point -- go ahead. >> that responsibility is the responsibility of the coach. that's his job or her job to make sure, football, make sure the offensive lineman

understands -- >> forgetit. losing my team every year if i don't pay the money. >> college coaches hate this right? hate this. what we've inherited college coaches like in the biz world, got to be able to adapt and adjust to this the way we used to recruit five years ago is totally different than now back then, fit for our school? how do you feel about our majors, our regular programs and our teachers et cetera now it's literally, talk to many, many, many coaches that i know first thing out of a player's mouth, family's mouth, like what kind of n.i.l. opportunity will i get? >> and the athletes. who's the loser in this? >> the 500,000-plus college athletes not getting a dime are losers smaller schools the losers lack of revenue of schools potentially are losers why it's got to be figured out yet. i keep hearing about the money, money, money

not financial literacy or eligibility, i don't hear about the small schools. >> a shame the money, the money, the money. go to the pros if that's what you were going to do don't come to the college level. have this be -- >> most of the guys not good enough to get to the pros. this is their opportunity to make some money. again, i'm not opposed to athletes getting paid. >> i'm not either. >> or lack of structure or lack of organization, the lack of discipline that surround this, i'm against. the purpose of the university -- purpose of athletics within the university and pure professional athletics over here. part of the university life. they're two separate worlds. they're separate worlds and i the only way it works i think ultimately a major separation. >> thank you so much joe, we need more information but i understand it better than a did. >> thanks. coming up, when we return, travel trends in gas prices. a road warrior this weekend, maybe this summer, everything you need to know, and then

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it is 8:00 a.m. on the east coast. you're watching "squawk box" on cnbc i'm becky quick with andrew ross sorkin joe is off today among today's top stories the s.e.c. approving a rule change that could pave the way for etfs that buy and hold the cryptocurrency ether that decision comes since months after a slate of business coin etfs considering charging users for a more advanced verpgs of a.i. assistants according to the information. no details yet how much a service like that would cost. and nouvvo nordisk, reporti details from ozempic late-stage data slowing worsening of kidney inflation with patients with type ii diabetes an lowered heart f failure risk, stroke and death.

and dow opened 26, 27 points up nasdaq up 55 points. s&p 500 up about 14 points treasurys as well. ten year 4.483 two year at 4.942 just there straight to mike santoli who has relocated from the nasdaq. thanks for hanging out with us earlier in the week. now with the new york stock exchange. >> you've relocated from central paris. andrew, good to have you back. sort of trying to find footing here in terms of the index a minor jilt, i call it yesterday. strong open. printed intraday high s&p 500 in the morning. everybody thought nvidia would have coattails get the overall market up. high ir. broadening out, a problem. here's you see percent off sorry from closing highs at this point. 5250 out of 50 -- a kind of interesting area it is the former high. kind of jumped off there in mid-may. probably go down another, you

know, 120 points from here and still at the 50-day average. nothing too unusual or outside about this pullback but showed we do have to keep an eye on treasury yields and whether inflation's friendly or not. look at the s&p 500 relative to its equal weight version this has an were fixation for months now you see equal-weighted s&p right here kind of, you know, sort of adjusts for the strength of the mega cap growth stocks has done fun and kept pace up until recently now faltered also. consumers cyclic manies in other areas softened up and corrected. equal weight back to 4rlevels trading in early march a lot more air underneath the market cap-weighted version, owes to that defensive attributes of the big growth stocks and nvidia's outright strength peeking of nvidia's outright strength i point to this relationship quite a bit you know nvidia versus bitcoin. back to the middle of last year.

you know, it's pretty much riding a similar wave of enthusiasm and energy, even if not specifically linked, but you see nvidia with reports yesterday of those numbers really separating itself at least for the moment we'll see if there's any follow-through in any direction there, andrew. >> mike, thank you for that. appreciate it. have a great weekend if we don't see you before then. meantime new data from gas buddy showing 76% of americans plan to take to the road between memorial day and labor day up 18% from last year. joining u.s. t ing us to talk a, head of petroleum and what are we seeing? sticker shock, or not? >> andrew, a lot of sticker shock. prices up modestly, 6% from last year interesting to watch the trends. tsa predicting and seeing record number of travelers via air. are week today gasoline demand

data through thursday compared to last year, gasoline demand down 7.7%. looks like 2024 might be skewing towards air travel, no the necessarily the roads. certainly still millions of americans out there pay be $3.61 a>>ed. down from $3.6 good news hitting the road this summer we expect progressive decreases between memorial day, july 4 and labor day other typical caveats, mother nature hurricane season a big wild card and seen a rash of some minor refinery issues in the great lakes. that's something that could bother motorists this summer as there are averages, temporarily driving up prices locally. >> interesting issue people talk about gas prices as sort of a billboard for inflation. it's a political issue especially in an election year where you see the price of gasoline on the corner of every other block you go to. how quickly do you think it does

come down, and if you were to handicap the possibility where you said some local markets may go up. see them where >> you know, i watch here from the west coast california is an extremely tight market really all it takes is one minor issue on the wrest coast to the derail california and potentially arizona. arizona has their own blend. or the great lakes seen tightness emerge there. with gasoline being released from the northeast gasoline reserve, that could push prices down a little bit in your neck of the woods there in the northeast. areas like new jersey, new york, boston, maine. may get a little from that in form of falling prices in the next four weeks. for the rest of us, national average should modestly decrease 5 cents to 10 cents between now and july 4th's not huge but could accelerate especially august the big wild card is hurricanes. pretty significant risk this

year something could develop in gulf of mexico. north america's largest refining hub is, a particularly sensitive area by the election, if the seasonality goes per normal could see the national average falling below $3 in november or december. >> how travel demand, talking 18% up for the summer is actually a function of the price? kept saying living a world where people are -- more people going out hitting the road, you can think, is there a ceiling here >> well, yeah. i think to your point talking out of both sides of our mouth at one point americans gripe about the price of gasoline, but numbers show not holding any back three, four good months a year at least for us in the northern half of the country, most of the country. summer's not ever-lasting. americans don't really care what gasoline prices are. having said that, still seeing a lot of complaining about gas prices being above average do the long-term inflation

adjusted numbers, this gas price paid today is not necessarily significantly out of that norm americans are getting paid more. and so adjusting for inflation gas prices are nowhere near record levels. >> patrick, thank you for joining us this morning. have a great weekend. >> thanks. >> don't hit too much traffic if you do hit the road. >> appreciate that take care. when we come back, we will speak with a new york state senator who is looking to bolster kids online protections. but to get his way, he will have to get a reported seven opposition campaign for big tech stay tuned you're watching "squawk box" and this is cnbc.

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dow up about 17 points nasdaq about 45 points s&p 500 up about 11 points our next guest is a new york state legislator who sponsored two child online safety bills, but he is running into opposition from one. most well-funded industries out there. joining us now to talk about his battle against big tech is new york state senator andrew gaguardis. the new child, new york child data protection acts looks to restrict sites from kids selling and collecting information senator, welcome thank you for being here. >> thank you for having me good morning. >> talk a little what is happening here and what these two bills that you've proposed would actually do. >> yeah. so the two bills that we're proposing actively negotiating right now would really aim to protect kids' well-being and mental health or social media and wes al their personal data

the safe for kids app limited to use addictive algorithms and curating content to show kids they are not actually signing up to see addicts them to stay on their phones longer, longer and longer, leading to significant mental health issues the rates of depression, anxiety, hospital admissions for self-harm, suicidal ideations. you pick the age demographic ay amongst teenagers and young kids the rates of these incidents are troubling or quadruples in some ina stances. this is the surgeon general, chief medical officer in the country saying social media last year in advisory is not sufficiently safe for kids we want to restrict these algorithms to prey on insecurities of vulnerabilities on young users as a default and

the child privacy protection act limit a company's ability to collect personal data from children just to monetize is and sell them for ads. they go hand in hand because the addictive algorithms work to keep kids' eyes on the screen longer so the internet companies can make more ad revenue off of these children in 2022 the most recent year we have in data for, big tech companies made $11 billion just in ad sales to kids. now, i'm of the view, i have two young kids myself. that kids' personal privacy, data and mental health should not be for sale. >> all right let me ask you this. and i agree with you in many respects in that i have kids, and we all, even myself. i feel addicted in so many ways. however, as i'm reading through some of the proposals around these algorithms you're trying to block, it raises a different question for me. which is that, you know, some of

these algorithms while not working as well as we'd like them to and maybe working against, in certain cases. they also filter out hate and they do filter out harassment to some extent. not as much as we like clearly depending how the bill is written you could be preventing some of that from even happening at all >> actually something we've heard a lot from the tech companies. they don't want us to touch algorithms whatsoever. reality is, the algorithm functions like a formula take as bunch of inputs and produces an output these companies are well able to set up this formula to screen for hate content, for bad content while still giving children the ability to find whatever won tent they want on their own, without having to feed the content they don't sign up to see at all these algorithms really function like heat-seeking missiles designed intentionally based on their own documents

from litigation going on right now against meta, for example. when they design these algorithms, actually studied slot machines in casinos and the psychological effects of slot machines and the addictive nature of just one more pull, just one more pull one more coin. one more video. >> it's a total doeber meen hit. even elon musk said it yesterday, owns x, says this. >> exactly right by the way, not restricting content. search for your friends and family still follow the taylor swift page still have a project page. we're not restricting your ability to access content whatsoever just how companies can show you the content. >> a specific issue, clearly tech companying are maybe pushing back as relates to this is, look, algorithms are working. not as well as you want. the question is, do you believe they are purposely not working as well as you want, or that they actually just don't

i imagine it's somewhere in between. >> i think you're right. it is somewhere in between algorithms can be tweaked in a way to drop the hate content different from design the al ga ring r -- algorithm to keep them on a screen longer, longer, longer. average teenage today spends at least four hours on social media a day. not because they're bored at home it's because the apps are intentionally manipulating them keeping their eyes on the screens longer, longer and longer that's the average. >> you have pretty big charges say the tech companies are funding a whisper campaign to convince fellow legislators not to go along with this. that they're coming up with excuses you don't buy? >> yeah. no it's more than just allegation it's true. because of the lobbying disclosure they have to fill out in new york. we see that the big tech companies have spent a million

dollars hiring army of lobbyists to, you know, patrol the halls of albany and whisper in people's ears saying we want to keep kids safe but can do it on our terms. i think the public record has shown very clearly look at the congressional hearings earlier this year leave it up to companies themselves they are wholly not up to the job, because it's not in their financial interests to take the most far-reaching measures that will protect kids. they have an enormous financial stake in continuing the status quo. so they're whispering in people's ears. don't do it this way or that way and we see it for what it is. >> the argument they make is, one of many arguments they make, is that it would be this mismash of rules in new york travel to new jersey or connecticut rules hard to follow in different states, but i think there is some logic to having states come up with pretty tough legislation anyway eventually it would mean that these companies would push for federal legislation.

so they don't have the mismash of states. seen it before amazon used to not pay sales tax on a state-by-state locality or a local jurisdiction until every state started doing something differently, every local jurisdiction did something and then in favor of federal rules actually force them to pay sales tax. >> that's right. look, you know, the last time congress passed comprehensive legislation to protect kids online was 1998. we were all still getting america online discs sent to us in the mail maybe two, three time as week back then the internet changed 1,000 times over's not reason why our federal law should be dated from the last century ever since we introduced the safer kids act and child data protection act california has introduced identical legislation. so has west virginia and virginia so i think to your point if we're successful here we can start a national model that will spread across the country and then by default become the national standard while we still wait for congress to get its act

together >> thank you for your time this going to be interesting to watch. new york state senator, appreciate it. >> thank you, guys coming up after this, memorial day travel surge at airports expected to be jammed this holiday weekend after the break, lay of the land or rather state of the skies later this hour speak with a top department of justice official on the government's big anti-trust case that just brought this week against ticketmaster parent live nation and in its effort to break it up stay tuned you're watching "squawk box" on cnbc. with e*trade from morgan stanley, we're ready for whatever gets served up. 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? ♪(voya)♪ there are some things that work better together. like your workplace benefits and retirement savings. presentation looks great.

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welcome back to "squawk box," everybody. people are hitting the roads this holiday weekend we look at what's happening with energy prices. check out wti crude this morning hitting lowest level since late february

$76.78 down close to 5% this week meantime, aaa saying busiest memorial day weekend for air travel in 25 years 3.5 million passengers expected to fly 9% from before the pandemic. just in time, southwest fares appearing on google flights. joining us now on us a thill, bernstein senior research analyst. here we are. the summer is upon us. i thought the yolo situation was never going to, stop at some point. a ceiling to it. talking in the context of driving. it doesn't seem to be over >> people want to travel after that pandemic and after dealing with a couple years locked away, travel demand remains really, really strong. also i think there's something to the idea that the changes in work/life balance, remote work is -- adding a little to extra demand you mentioned, travel demand this summer should be up 6%, 7%

relative to last year. >> are we still seeing a shift in terms of timing there was a moment sort of postpandemic, the hot day used to be friday friday afternoon sunday night then it moved from thursday night, you know, up to thursday night and back even on monday night. so are we seeing a switch in that kind of traffic >> yeah. definitely a change in terms of the cadence of when the most in-demand flights are. airlines started to adjust their schedules positioning themselves to stop running peak flights monday morning and stretch out during the week. we're seeing how the travel demand patterns are changing, and i don't think we're at a new normal yet i still think the airlines are adjusts to it. they're going to have better opportunities i think to yield manage going forward getting a better understanding when and how people want to travel in this new environment >> we got southwest up on the screen curious. of the airlines as stocks as

investments what do you like today? what don't you like today? >> we have a strong preference for the legacy major airlines. delta, united, american. the discounters in particular, ultra low cost carriers operating with a movie theater ticket model kind of for a while. give you a very low price and add in a bunch of costs, massively disrupted. a negative for southwest as one of the bigger discounters. major airlines, delta, american, united, figured out how to compete with discount and allows them to protect fares upper end of the ladder and flooded market with discount capacity putting a lot of pressure on lower-cost operators. in fact, look how the industry is performing over the last couple years, the margins of legacy airlines are much better than discounters a fairly new phenomenon and direct result in changes in the

market. >> what do you think about pricing? how much is all of this impacted by just a shortage of available, physical planes? the issues with boeing and everything else. >> capacity rates part of it we like about the airline investment gays, supply-demand characteristics are definitely a little more in your favor. but i do think that this idea that fares at low end may be a little lower, but higher end growing a little pushing up that higher end of fare distribution has been what delta shown the industry how to do changing their economics in a way really beneficial, i think to pretty much the broad krafl ma travel market. not got for discounter trying to compete with the full-service airlines get you anywhere any style, any price point it's something the travel public will benefit from in the long run. >> david, thank you for joining us have a great long weekend. traveling somewhere, that the

flight gets there safely and fast. >> go early. tsa screenings up 7% yesterday. >> go with that. >> got to tell you, go early even with clear. airlines -- >> check-in. when we come back next, breaki bri breaking economic data "squawk box" will be right back. .

welcome back, everybody. it afew seconds away from the april durable goods orders ahead of that looking a the dow just turning into the red. nasdaq up 35 s&p by 10. over to rick santelli standing by at the cme in chicago >> yes, becky. april preliminary read for durable goods expected down 0.8% down close to 1% coming up a winner up 0.7 of a percent. up 0.7 in terms of revisions get to th those in a moment. strip out transportation it's still fairly lofty. well above expectations. up 0.4%. and if we look at capital good orders non-defense x aircraft for capital spending expected up 0.1% also coming in better than

expected up 0.3%. finally, let's switch from orders to shipments. orders from shipments. shipments up 0.4% better than 0.1% expected. beat on every line here's the issue this is preliminary. if you looked at march's preliminary, they were very lofty. headline was 2.6 ended up 0.9 from preliminary to final reads we get big revisions that 0.9 actually became revised again in march to 0.8. started 2.6. ended up 0.8 be very careful of a volatile series still numbers better than expected, and that does put a bit of a upside move in interest rates. now, considering we're currently trading at 449 in a ten year, up seven basis points on the week 494 for two year puts it up 11 basis points on the week we've had significant

psychological moves on the interest rates side because of the uncertainty. using the word in the minutes to the last minute. with regard to the fed and their gps on interest rate cuts and where the economy is exactly. and also we have supply coming in over the next couple weeks that should underscore the rate gain, because many believe, and i do as well, that one of the key ingredients that's keeping rates a little bit hotter than many would have suspected in addition to what the fed probably isn't going to do on the easing side are debt issues and options, which put it right in investors' face every week or so as to how much issuance we're doing, which underscores how much spending that is behind it. becky, back to you. >> rick, you are so good at what you do i love how you were, like, figuring out the math on the floriday while you continue to talk get us to the end of that.

what do you think with all of these numbers how this adds to the mix, shapes things up? sounds like you think higher rates here for quite a while one more thing to add into that pot? >> yes i always like to make it a split decision i understand that the fed is quite important to all strategies everybody listening,watching o cnbc but the market has a say-so, too. maybe a bigger say-so now than in the past. short end of the market i still think maybe one ease possibility of non-existent and the market is living with that rather well. the debt structure of this country and the globe, i think, keeping rates hotter and i think pockets of inflation remain stickier and that the runway for. glide path we're on on the economy will project lowernot sure i subscribe to the jamie dimon outlook, potential for a hard landing is more significant than many believe, but i do think that a slowing is coming

everything postpandemic just seems to be stretched out in a longer timeline, and that's really difficult to deal with when you have so many questions as to global economies, supply chains, and i will point to one other fact that when it comes to issuance, such a big issue you're europe, china, putting much more paper into the marketplace. we know spreads for junk bodnds to yields have narrowed. extra you're getting smaller and smaller. all compressing many issues that affect interest rates. i expect a much more volatile second half of the year on the ten year t. i will say it again. you are so good, rick. thank you. for more reaction to today's data and a big week of fed speak centering in center direction of interest rates we bring in allison schrager, senior fellow at the manhattan institute and

also wendy eldelberg. welcome to you both. start where rick left things wendy, one piece of information in a much larger puzzle we're trying to piece together, but do you agree with rick's general assessment that it's going to be a lot tougher for the fed to raise rates? market could push back and ig issues to watch ban of our ability to issue debt? >> monetary policy set with an eye to what's happening to inflation, and what's happening to the labor market. monetary policy makers are doing their job irrespective what it means for the cost of debt financing. now, what they are paying attention to is, how much pressure federal borrowing is putting on interest rates, and what that means is that the higher the interest rate is, because the federal government is in there competing with other

borrowers, the higher that interest rate is, the more monetary policy makers have to raise interest rates to make sure monetary policy is tight. and so i think the direction is, the higher the, you know, the more federal borrowing we have the more monetary policymakers have to raise interest rates i think that's the direction. >> and allison, meantime as that's happening, how do you see the consumer shaping up on things how do you see businesses shaping up >> well, seems like every piece of data we are getting each week is the same thing. which is demand is still really high in this economy and as we see this with a sort of bigger orders we're going to see this with consumer sentiment coming out in a couple hours it just seems we're in a really hot economy. that means i think every data report seems like odds of the fed rate cut is getting lower and lower. when it comes to interest rates,

rick made really important points here. i also want to add that if inflation gets stickier, it's starting to feel higher, more month unstable meaning rates lie the ten-year rate will be higher. term premium, a while since we had to think about inflation in term premiums inflation so low for so long, that's baked in, too. not only expected inflation, which the report in a couple hours expects to be above 3% the risk around inflation. that premium is baked in to the term premium anything above five years might are structurally higher for the time being. >> is that okay, though? long as the economy continues to chug along allison? >> yeah. it is. i mean, for most of, you know, the last century, rates definitely well above 5% and we grew just fine it's a very different environment than we're used to an economy largely built on very, very low, zero real interest rates i mean, it will be different but -- there's no reason to believe that, you know, could be

a disaster either. >> yeah. wendy, depends when you're sitting. there are going to be pockets it feels disastrous if you've built your business plan or something else around the idea rates were not netley zero but a lot lower than we actually wind up seeing? >> the real risk here is inflation expectations so right now we have tight monetary policy. a very strong economy. and higher than desired inflation. those things actually all go together, and suggest that monetary policy just has to stay tighter for longer that doesn't mean that we're in for a hard landing necessarily but what it means, monetary policy still has more work to do strong economy high inflation those go together. but the risk is if inflation expectations get stuck too high, then monetary policymakers have to, you know, cause some pain to convince everybody

no, we really mean it. bring your inflation expectations back in line to what we where pre-pandemic and, yes, we'll see what survey responders say when we get the michigan survey. i really don't know what to make of that survey these days. pretty much states miserable and spend like their unperturbed we'll see. i think inflation expectations is the thing to watch. >> allison, how much of that is the divide between consumers, though consumers continue to spend, but maybe not everybody? >> we are seeing -- sort of two different economies happening. sort of richer americans, high-earning americans spending like crazy and have a lot of income but on, the bottom percent, a lot of money out of the pandemic looks like savings largely are spent and seeing higher default rates on credit cards. they're still spending but going into debt. i think this might be partially what was meant when he said the economy is feeling stretched

demand still high. people aren't feel going but still spending somehow. >> what number do you look for next aside from this michigan number we know is coming up today what's the next biggy that could have an impact and make markets re-evaluate again? wendy, start with you. >> well, i mean, always the unemployment report. that is where we're lasered focused to see if monetary policy is doing what it meneedso do the puzzle, immigration has just widely upended what we might expect for those numbers now i expect when i look at the unemployment report, monetary policy doing its job getting the labor market to a nice sustainable place, we should be looking for numbers like 175,000 a month. which is probably double what you would ask expected in absence of the surge in imoperation. >> and you mean illegal immigration? more people here taking some of those jobs

>> well, it's not illegal. for the -- you know, majority of people, three quarters of people we're talking about coming into the country are here legally they have, getting work permits. they've applied for asylum and here for humanitarian reasons, in the immigration system and in this current legally -- in this country legally. >> allison, quickly wrap up here are you in jamie dimon's camp, the concern that things could get stretched? we could see the economy turn down inflation continue to run high and look at some stagflation issue? maybe not exactly like the '70s, one that would rival it? >> i'm not so concerned about hard landing where things are. it concerns me a big negative shock and not quite as resilient. that could go badly. we could keep chugging along with 3% inflation and low unemployment and 5-ish percent interest rates for a while problem is, if anything goes

wrong. >> allison and wendy, thank you both for joining us on this friday before a long weekend hope you have a great one. >> you, too. coming up when we return, the government's big antitrust case against ticketmaster parent live nation. how strong is it and what can a broken up company do for fans charging sky-high price ys speak with the top doj official next listen to us using the cnbc app. dop it right now if you want stay tuned we're coming right back live from the nasdaq market site in times square. grace didn't bel. but her daughter was happy to prove her wrong. you were made to dream about it for years. we were made to help you book it in minutes. ♪♪ energy fuels, a leading american uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies.

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welcome back to "squawk box. a look at futures now. still got 45 minutes before the market opens but open higher things stick where they are now. dow up 45 points nasdaq up 67 points. s&p up about 16 points. norfolk southern agreeing to pay more than $300 million to settle charges that a toxic

train derailment from early last year majority, $23 a million to cover past and future cleanup efforts. the company will pays $15 million civil penalty toll resolve alleged violations of clean water act. the freight train carrying hazardous materials when derails in february 2023 in east palestine, ohio igniting a days' long fire forcing local residents to the evacuate and contaminated water and soil. expected to have spent $1.7 billion in association with the incident the cleanup expected to conclude sometime this november. meantime, talk about the department of justices big case. suing to break up ticketmaster and live nation. combined in 2010 and dominant in history. the lawsuit supported by 30

states after they botched a highly sought-after taylor swift tour joining us, principal deputy assistant attorney general for antitrust division at the department of justice. good morning to you. it's a fascinating case. i think we're all trying to understand what implications there are, and how much prices would come down if you are successful. >> thank you so much for having me this case is about the control that ticketmaster and its parent live nation entertainment exert over every level of the live music industry, and so that's everything from the artist to venues to promotions to the way fans experience music. so fans absolutely experience the pennage of ticketmasters high fees, and this lawsuit really walks the american puc public the way they're able to

exert monopoly power, abuse it and the way it raises costs for fans and take more money out of the hard-working talented artists, particularly working artists who have less ability to negotiate with live nation and ticketmaster. >> how much is focused on helping the fan versus helping the artist if you will. >> there are lots of different markets in which we have made allegations that ticketmaster and live nation abuse their monopoly power some are fan-facing's some are venue finish facing and some are artist-facing. what becomes clear when you look through the complaint, and i urge you and the public to read the complaint, it's that there are harms felt throughout the ecosystem, and that's really the way that live nation and ticketmaster maintain their dominance and enrich themselves while harming fans, artists, venues and everyone in between.

>> a lot of fans look at the price. goodness how is it possible prices so sky high at least in the united states, and i was just in paris yesterday talking to somebody about taylor swift just played over there, the distinction between prices in europe and prices here and how much lower prices are there versus here, but part of me does seem to me there is a secondary ticket market in the united states and demand issue almost a part from many of the monopolies not disputing may be part of it, but there's a real question mark about how much of the price tag that fans are paying are inflated as a result of the fact you think that this company has too much power versus a whole sort of ecosystem, if you will, that's so different than other places >> sure. so the attorney general yesterday announcing the lawsuit put it perfectly this case is not about the fact that there's scarcity for

tickets or frustration or inconvenience. this is about monopoly power this is about retaliation and threats and exclusive agreements and the abusive monopoly power that, frankly, subverts the competitive process in these markets. so we are champions of talent and labor talent and labor, and we think that artists who are successful should be able to be rewarded for those talents, but this is about something different. this is not about an ordinary demand and supply curve for live music. this is about the extraction of monopoly -- through abuses >> i appreciate that i'm just trying to -- i'm trying to get -- to push you to see if you can quantify, though, what percentage of a ticket sale you think is effectively a monopoly extraction >> so, it's important to note, andrew, that we are not required to identify or quantify a

specific percentage that is monopoly rent. the antitrust laws are concerned with subversion of the competitive process, the fact that the market is not functioning as it was intended because of anti-competitive practices. and so, there is -- you know, this is really a beginning, and not an end there will be discovery. there will be expert discovery, and there will be opportunities to explain both in terms of price but also quality and loss of innovation that really hampers the experience that fans are facing, including through exorbitant fees. >> was there any discussion prior to bringing this suit of some kind of forced settlement >> i can't get into the discussions that we had with livenation, but we always think about opportunities to resolve competition concerns, and here, we are in the place of having had to file a lawsuit precisely because our competition concerns persist.

>> when you think about the artists, cwhich i know is a big component of this case, again, can i ask you to quantify or give us some kind of color or sense of how you think the artist is being damaged and by how much >> again, this is not about quantification of harm the antitrust laws consider things like abuse of bargaining leverage, and we take great pains in the complaint to talk about how differently suited the stars that are often in the press but also the working artists who are not able to counterpressure that we allege livenation and ticketmaster exert on them to use for example, livenation's promotion services or preferred venue with ticketing software. it's not about quantifying a particular dollar amount, although harm will probably be manifested not only in dollar amounts but also qualitative nonprice factors >> right

you've talked about spinning off or splitting ticketmaster. is that the only solution to this is there more that you would like to do >> any time we go to court on a monopolization case, we are tasked with proving up the exact contours of how a monopoly abuses its monopoly power, and we have to get a liability finding. only after a judge finds that a company has, in fact, violated the antitrust laws or sometimes a jury has violated the antitrust laws, then we get to remedy, and the remedy has to be specifically tailored to addressing the harm. sometimes that has meant break-ups. sometimes that has meant equitable relief, behavioral factors, and sometimes it's a combination of the two here, we have alleged that there are so many conflicts of interest and an interconnectedness among the

different parts of livenation's and ticketmaster's businesses that structural relief will likely be required in order to seek redress and open up the market for competition >> livenation, in its response, says that there's more competition than ever in the live markets, live events markets. they say that's why ticketmaster's market share has declined since 2010. is that true >> obviously, we dispute some of the facts that they have set out, and that's precisely why we are in litigation, and so at this point, we will make our case to the court, and it will ultimately be up to the courts to decide whether, in fact, ticketmaster and livenation have monopoly power >> final question for you, and i think it's a question that a lot of ceos are thinking about today, which is, this was originally a transaction which was approved and allowed to go through over a decade ago now, about 14 years ago, and so there's a question about sort of reaching back, if you will

how do you think that the business community should think about that >> so, to clarify, this case is a section 2 of the sherman act monopolization lawsuit the merger that you're talking about happened, in fact, in 2010, and that was addressed under section 7 of the clayton act. if you read the complaint that we filed alongside 30 attorneys general yesterday, you will see that it is a more sweeping and more expansive accounting of the different places that we believe livenation and ticketmaster has abused monopoly power or engaged in contracts or other coordinated conduct that we think violates the antitrust laws again, the 2010 deal was really about ticketing services and certain anti-retaliation provisions focused on venues, and this is just much broader. >> we look forward to following the progress of this case on all sides, and we appreciate you joining us this morning. thank you very much. >> thank you so much

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welcome back to "squawk box. dominic chu joins us this morning. >> a couple of earnings movers this morning, andrew, becky, related to reports after last night's close, both in retail. we start with ross stores, which is up about 8% right now, 40,000 shares of volume the off-price retailer is gaining ground after beating profit and revenue estimates it gave a current quarter profit forecast where the midpoint came in slightly above estimates. on balance, up 8%. then, you got deckers outdoor, up over 12%. the parent company of popular footwear brands like ugg and hoka are reporting better than expected profits and revenues as well some aspects of its forecast came in below estimates. check out this analyst call for toast. those shares are up. wedbush, an outperform rating on that particular stock. check out cnbc.pro.com for more of that story. becky, andrew, back over to you

guys >> okay, dom, thank you. appreciate it very much. we've only got about 20 seconds. take a quick final check on the markets right now. the dow looking up, the nasdaq looking up and the s&p 500 looking up there we go for a nice three-day weekend. >> it is memorial day, and it's a time we honor and thank our troops, those who have served and those who have given the ultimate sacrifice in that service, and we do thank them for that >> very much so. in the meantime, do have a good weekend, and join us on tuesday. "squawk on the street" is next ♪ good friday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer at post nine of the new york st david faber is on assignment bulls on the hunt for signs of stability after the dow's worst day in more than a year. benchmark yields still a bit toasty durables ran hot, although oil, near a three-month low our road map begins with the day after the selloff, the dow dropping 600 points on pace