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good wednesday morning welcome to "squawk on the street," a live shot at the capitol as the house gavels in to vote on impeaching president trump for a second time. much more on that coming up. stock futures basically flat first we turn to david with breaks news. back to the corporate realm. we want to update people on the situation we've been following closely, namely intel. we can tell you now according to people familiar with the situation that the intel ceo bob swan will be stepping down february 15th, in an announcement shortly and replaced by pat gelsinger, the ceo of vm wear and a former intel employee for many years, an engineer and we would expect perhaps an appointment that will be well received by the market i have called intel, and shared with them what i knew to be the case they had no comment. i would anticipate, however, that you could expect, given they weren't planning, they were planning on announcing this

later today, it is my understanding that they will be moving that up announcement, so we should get confirmation from intel of this change that will be taking place again february 15th is when mr. swan will be departing the company that he has run officially as its ceo since january of '19 but remember, he was also interim ceo of intel for some seven or eight months after the unexpected departure due to breaking of company policy bithe former ceo mr. swan has been under a great deal of pressure, as our viewers know, as shareholders know, the company considered, once considered the gold standard of the micro processing manufacturing, has lost its pole position to tsmc in taiwan and samsung in south korea that is to a certain extent true they have been stuck at 14 nanometer chips since 2013 they missed a cycle. they have been trying to figure out what they're going to do in terms of their manufacturing and

mr. swan has come under no, under a significant amount of pressure, as a result. so perhaps not a big surprise of his coming departure gelsinger, as i pointed out, he let emc's of course, information infrastructure products business as coo, vmware is in the process of being spun off, 81% owned by dell so there was a transaction in the future of that company, but this gives him an opportunity to come back to a company that he once had a senior role in he was the first chief technology officer of intel from january of 2000 to 2005, he was also senior vp and gm of the digital enterprise group, in 2009, after which he departed for dell emc and then of course vmware, so you can see the market responding somewhat positively to this change, again expected to have been announced later today. my expectation now is given we're reporting it that they will probably move that up and

confirm it but we can tell you that it is the case. mr. gelsinger will be taking over february 15th for ceo bob swan >> well, i've been openly credit al o -- openly critical of bob for a long time and the wrong man ceo type, and this is a company built by engineers and this is terrible to watch, and they're not even making chips, they've missed everything, lisa, it has been a difficult time in intel, the two oncoming, i have bob swan, literally, where they were doing the search, i think they were having a very hard time even finding a ceo so they defaulted to bob i have said, and i did not mean to be facetious, a nice guy. stop smiling a nice guy. wrong guy. and pat, i've known from vmware, excellent. he has been my person who comes

on from v mware, trying to get a hold of anybody, because this is such a good scoop, but david, we should point out that while it had to happen, and the stock was creeping up yesterday, it is still a shock, because intel has been very, ever since andy grow, i should say a little bit later but the company has been basically rudderless >> there are no shortage of things that gelsinger will be dealing with, chief among them dealing with manufacturing and how you get back in the lead, and he is an engineer and it is an engineer-lead culture and in a letter, sent to them, december 29th to the company's chair, they made the point of course of a loss of talent that they believe has been taking place at intel, so how do you reverse that if in fact that is the case then there is also this

overarching question as to national security concerns, whether there's a way to make this a national champion, that will benefit intel, and by the way, when it comes to the third point, i don't have a lot to share here, it's my belief that they are going to be quite pleased at this appointment. they were not behind offering this name to intel however, as you might imagine, even though they did not ask for it in said letter mr. loeb was hoping and expecting that mr. swan would depart, that the board would take actions to do so the nominating deadline for directors is at the end of the week, it still remains unclear to me whether or not mr. loeb will nominate or not, or this will be enough programs to turn the tide there but that is yet something else they will be dealing with potentially is of course an activist in the part of the third point, jim so no short average things first and foremost of course is how do you get back to being a leader >> the last guy was craig barrett who was after andy grove. and i've been saying over and

over again on this show, taiwan semi is the most important company in the world right now when it comes to american security and semiconductors, that's because intel failed to deliver, when you see the articles of china making some type of military move on taiwan, taiwan taiwan semi is the most important semiconductor manufacturer in the world. and did medtronic play a major role a no nonsense guy. and he has been critical of what he did at medtronic. he is in a position to be able to say enough is enough. >> yeah. well, listen, this is his first major move as the company's chairman and yes, you would expect that the board and obviously led by its chair, did play a role here. look at that stock, david. that's quite an endorsement. >> that says judgment. >> that's a move that they've made and again, it doesn't take away any of the challenges facing this company, jim.

>> i actually feel bad for bob because bob got thrust into the situation. he did not want the job. intel couldn't find anyone >> he said he didn't want the job at the time he said he wanted the job and i remember at the time we questioned it, and i don't want the job. >> i think he completely double crossed me when he was on and jua one of the great misgives about coming on the show "mad money" and then say i'm not taking the job offered and then take it, but the problem is no one wanted the darn job. >> my understanding there were a number of decent candidates this time and perhaps gelsinger is perhaps the strongest of them. >> he is really strong. >> that's why he has taken the job and chosen to take the job and leaving vmware, not an insignificant move for him but that is going through a major change, with the spin that is going to take place later this year, and remember we talked

about in terms of tax purposes why that's the case and they will be looking at a new leader at vmware as a company. >> and you look at the reaction, what does that say i mean this is all about the intel situation, and if someone thinks that pat gelsinger will flip a switch and take back the lead from amd, that's stupid but intel is powered by the notion of world leadership and build chips and not miss cycles is a threat to amd's preem sense. but this can't go on and on >> and maybe amd is the lion. >> and this idea that has been introduced by many, of course, and was part central to the letter that they received from the third point and i reference it because in some ways it sort of reflects a lot of the frustration, proudly speaking of

longer-term shareholders, they, jim, they brought up this idea of whether they should remain an integrated device manufacturer, and/or divest certain what they called failed acquisitions do you have any sense -- and we've had mr. gelsinger on, he joins us frequently, always enjoy frequently, i mean i don't know what his plan will be and is it clear whether he has a plan but you got to focus on that question, don't you >> yes, because if it is intel asset like, which is really just an admission that listen, we work for taiwan semi and we don't know what we're really doing, like we used to, that is a terrible admission but it's about time it happened. this is, people have to understand that this was the greatest company in the world. manufacturing company in the world. under andy grove and craig barrett. it has so lost that leadership and in the end, now it's saying we don't even want to make, david, that makes taiwan semi the most important company in the world and the chinese know that, and people, i mean i wish

the administration, i wish the administration even understood what the -- they don't understand chips at all. >> so must chip making capability is housed in taiwan and taiwan is a flash point one day potentially for the chinese and u.s. interests so yes, that gets to something else that can be quite worry some >> very worry some >> i'm glad they made the change i felt badly when i discovered when they couldn't find anybody and that is my homework, and do you your own reporting, people should understand at home, these are all companies they're not sitting there and saying omar is calling me and i was at the meeting and we didn't like the quarter, well, no. >> carl, and just to come back to, to make sure i did call on this, and when i was reporting it was 5:00 in the morning, no real comment from them and my

expectation given when you're reporting news like this, they will move to confirm it relatively quickly we will see if there is anything in the release that adds to the knowledge that we have at this point. >> that would mean that intel is actually up, that they're up >> that they're awake. >> yes >> that's a big win. >> they're awake now and boy that stock price is awake. i'm not sure jim if you've taken bets you would expect it to be up this much. >> it should be up more. >> when we're open in 18 minutes or so, we will see what happened. >> it should have been down yesterday. amd has been getting crushed >> what the hell was the stock going up for >> i don't know. >> it's a hard thing to keep secret there's a lot of people involved >> congratulations on an unbelievable scoop. >> thank you i'll take. that sure. why not? >> carl, over to you. >> you deserve it. >> that's what you were working on when you were home. >> i'm always working. >> that's going to take you back to july. we will take a break here a lot more "squawk on the stre" ntuein mute.et

>> we have terms of service for our app store. and some of those terms of service, he's in violation of. >> all we're asking is that he make the terms of service. >> corporate america's response to parler, it continues today, jim, as the response by amazon, to parler's lawsuit sort of explains why they took them off of aws, citing the company's unwillingness to remove condition dent that quote planned the rape, torture and assassination of public citizens >> no sffree speech, it is es consed by the supreme court, and the idea that you are insighting the death of people has always been something that the supreme court, well, actually 100 years, feels and when i read this stuff, this is the opposite of

intel, it's not opaque, it's just the way it. i mean you're either in favor of genocide or you're against it. >> agreed. i mean this is such a unique period that we're in here. for so many reasons. but one is of course corporations stepping up in so many different ways. but the power of aws as a platform, the power of facebook, very different than twitter and the like, and youtube, to influence opinion, but the amazon part of this, jim, is fascinating, isn't it? i mean i'm just curious as to how you read it, in terms of what they might do in the future, or decisions they might make in terms of who they were, or are willing to host and not >> i think that everybody suddenly realizes, it can't just be a bunch of bots we have a firm that has come public, there is this incredible, and i mention this, there is this incredible notion, as long as it is machine, it's honest and good and the firm is fine, the firm is fine, but the idea you don't need a brain because you got algos, that's

being, and i the way algos are cheap and brains cost money, i think that's being put to rest here now with a president who incited an insurrection. is there are rules in this country. hate them or like them, you're not allowed to, insurrection is on the wrong side of history it's against the constitution. so suddenly you've got these companies and they're waking up to the idea that they're part of the insurrection and they can't be protected and they want to say, well, listen, we let free speech for everything, there is no free speech for insurrection. so i think a lot of these people have to do something, if they don't want to do something, they have said they have hired a lot of people but the idea that you can just run anything, is the way you lose your protection. >> it is and carl, during this extraordinary, i'm sorry, we're in a new year now, but over the last 12 months or even more, we remarked many times on things we were seeing corporations do that we hadn't typically. moving into areas that perhaps they had not ventured into the

past and now the last few days, it's truly been extraordinary i mean oftentimes moved by their work force and by their workers who are demanding that they be a part of change, as opposed to just stand back, but this is an extraordinary period of watching corporate america respond as well to that insurrection that jim just mentioned >> and of course, the backlash, guy, sort of flies in the face, with those who have normally said let the private sector be the private sector without interference, and now with the label of cancel culture, they're trying to tell american companies how they should manage their campaign contribution, their own server, the degree to which they want to host these sites or not by the way we should mention that youtube, one of the last holdouts has finally removed the president's channel, removing comments as well, for at least the next seven days, citing the risk of violence, and then walmart and disney, jim, two of the largest companies now, who have joined the list of companies who will suspend

donations to those who voted to contest certification. >> i think that this is, i love what it was called this weekend in "the new york times," people who want to game the system and people who want to break the system and if you want to break the system, then i think it is very easy. all of these company, some of them have a conscience and some of them are worried about their customers with a conscience if you continue, and support insurrection, then i think it's really not that, i think you have to expect that there will be a boycott and if you have a boycott, you're going to his your numbers. you can say wait a second, jim, it's not about that, it's about people who have a heart and a brain. i hope it is but it is about the customers and as mark says, it's about the customers. customers not in favor of insurrection insurrection, bad. confederacy, bad union, good. lincoln. >> those are -- where is he, david? >> well, he was good

confederacy, bad jefferson davis, bad grant, good. robert e. lee, bad >> okay. >> slavery, bad. >> anyone in favor of slaves this is the 13th amendment bad. anyone in favor of - >> how did this happen >> with that in mind, the house has begun debate on impeaching the president. wewill monitor that in additio to a lot of calls today, would he have the street commenting on master card visa, home depot, jpm, and exxon, overweight for the first time in seven years. back in a moment ♪ ♪ why do you build me up, build me up... ♪ ♪ buttercup... ♪ ♪ baby just to let me down! ♪ ♪ let me down! ♪ ♪ and mess me around... ♪ ♪ and worst of all, worst of all ♪

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let's get to "the mad dash" and six and a half minutes before the opening bell, zoom doing a big offering and it has been the focus. >> it has been a darling one of the great stocks of all time if you're talking about doing this, and i think there will be lots of buyers but if you take a look at it, it peaked when we realized that there was going to be a vaccine and people would start meeting each other again, i think that is wrong. i think what maybe, it doesn't deserve the multiple on sales of 50, but i think zoom is here to stay kind of like docu-sign it may not have the same growth but that growth was inconceivable. we have these companies like snowflake, like zoom, the growth is just beyond what anyone can have but watch for new product, watch for zoom to integrate. >> they compete against a number of large number of companies with large access to capital and that said, they're a darn big company and able to raise

capital very easily. >> webex is enterprise teams. i used teams yesterday give me an engineer. >> and this is an easy one and i think this is a short term bottom in zoom eric has not been talking a lot. he has been working. he is a seven day a week guy >> is he >> yes. >> worth pointing out, we talked about a-lot about these services, these are early day, and think about how much they have iterated in the last five years, and what will they look like in the next five years. >> you'll be a hologram, you'll be zooming in. >> who is the guy that argued that i wasn't a hologram the former ceo >> yes >> when musk tried to put me in my place >> he said you were a simulation not a hologram be accurate. >> i must be he's rich. >> opening bell a few minutes away stay with us here on "squawk on the street."

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the board's been working very

aggressively, we believe this is the best open job on the planet. and the management team has told the board, take your time, find somebody great and in the meantime we will be just fine running the company. it is a very exciting time for us >> that is bob swan on "mad money" and david's news that he will step down as head of intel in mid february. we talked a lot about whether cfo's have any business running engineering companies like a semiconductor, and it's clear he saw the asymmetry in that even himself. >> right atha again that was 2019, and then he was appointed ceo. and i think he was playing his cards to close to his vest and i think david, he was expected to get it and i always thought this was a great manufacturing company, not a financial company, and sales people in charge, too, that didn't work, either. >> it was odd because as we just saw, he was saying no, it's not the job i want, i don't want it

and he took it and he did somersaults to explain why he had that change and thrust into the role to begin with because the previous ceo was forced to resign after breaking company policy it has not been a good run for intel. and clearly investors today calling it and we're waiting to hear from the company. i don't think we've seen an announcement but they clearly feel gelsinger will lead a resurgence of what was the preeminent chip maker in this country. >> dan loeb tweeting, swan is a class act and did the right thing for all stakeholders stepping aside the opening bell and the s&p heat map at 3800 exactly where we were 24 hours ago. at the big board, it's acquisition corp doing the honors and the nasdaq, a firm celebrating the ipo and we will speak with max levchin, and $12

billion valuation, and peter, among the investors. >> the market loves companies that are like this and they have been taking a backseat because people want to own big cap stocks but that will end. max, here's what happens, these are companies that people know, crunch numbers, and are viewed as not having any real risk to them, and david, you know that when you make one of these fintech companies come true, it suddenly starting looking like visa visa didn't get made and i put in that you would comment on that. >> the department of justice as you know was opposed to the deal it was seen as anti-competitive. kind of capturing a potential rival in some way. >> it is funny if they think they can get away with that one. >> large acquisition but they do abandon that that plaid acquisition with that opposition from the department of justice.

>> you know, max, he'll come on, it will be, people like it, the stock will go up, and i wish there was more soul to it, but that's life on wall street i don't mean to denigrate it but people don't care, if it's fintech, buy if he comes out on the show and he says you know, we're taking a hard look at bitcoin, then the stock takes another jump, if he says he will look at all sort of crypto, it will take another one and coin base, it double, that's the world we're in, and everyone likes it why not? makes a lot of money >> skeptical >> no. we're also in this world here. never want to forget about it. tomo bravo, you want to say bravo. >> yes. >> their pricing, there's bitcoin, why not why not take a look at bitcoin wow. off the 41,000 number. >> when i look at bitcoin, i

wish we could remember, when you were little and you wanted to look at the solar eclipse and your mommy said, you have to wear these funny glasses, so you didn't burn your pupils. there you go was it my retina my retina hurs looking at that. >> even now? it's backed off. >> i don't know, the polar, you know, the cheap five dollar glass, i can't look at that, you need the raybans >> it is that crazy out there. i wish we would -- do you have any ev >> i haven't taken a look at ev. >> i have xlm. carl mentioned it earlier. you saw this note from jpmorgan. >> yes >> the difbd, they really do believe, and the excuse has been tough, and the bar is materially lower and execution may be turning a corner and 2021 consensus too low and the dividend yield is more secure and valuation more reasonable.

you know, i haven't gotten updated where things stand with a couple of the activists that are in there, talking about a significant change in capital allocation, and spending at the company, but it's been getting some fans. >> i think the best line in that piece is we are not claiming to be early there are guys who stuck their neck out earlier, carl, and i guess it is better late than never, but he's got some pricing here. >> you were talking about legacy names who dabble in new areas, we talked about walmart and fintech yesterday. and today gm on that evening news yesterday, jim, that's going to be, above 50 in the pre-market, obviously an all time high, post-ipo. >> i got to tell you, phil la bow has this better than anyone and it is like listening to david on intel this morning, if you listened to phil yesterday, you would buy gm because he is

basically saying there is a consensus developing that gm's batteries are vastly superior, and if you're ev and you're battery, you're off to the race, if you're a delivery van company, you're off to the races. and please don't forget plug pal and renault. >> and general motors, like general-e-motors and if general motors were to take bitcoin for car, oh, baby, and changing the stripes, in the same way that i believe farley is correctly changing ford by a commitment that i find shocking for ford. he wants to make money >> guys, we do have the statement out from intel confirming the news we first brought you at the top of the show >> with a tribute to you, david? >> well, no, now they're putting it out officially, but pat

gelsinger will step in as we've been saying on february 15th and i think it was mentioned already, dan loe b's tweet, congratulating swan for doing the right thing so to speak but as i indicated earlier, this was viewed quite positively but unclear how it changes the complexion of that potential fight over some directors. the nominating deadline is at the end of the week. and certainly mr. loeb has a few candidate, one would imagine, unclear how that would move forward, given what is a very positive response to mr. gelsinger's appointment, as of february 15th, mr. swan stepping down, and news we first brought you, you know, jim, a lot of people, just who wanted to own this stock previously, including mr. loeb, would just come back to the multiple, and say you know what, if you can get anything moving in the right direction, you know, you're talking about a ten multiple on this stock, if you can get a few mobile points in there, you are going to be a lot better off if you can stop losing the

market share to amd every year, you will be better off and if you can get your manufacturing moving in the right direction, you will be a lot better off and today, they're a lot better off. >> right lee a sue has yet to be heard from, when she reports, i think it will be an amazing quarter. i think she's multiple points ahead of intel, and it doesn't matter who is going to run in telling. they have to do a real housecleaning. if they want to do, to give orders to taiwan semi, they're not the intel i remember when andy grove decided to get rid of the business they had and go to micro processors and they were trying to figure out if they would be a d-ram company or microprocessor company and they shut down d-ram and they've gone full circing and the current intel is a shadow of its formerself and those who are selling amd on this, come on

at least the keynote carl, it's one thing to say that the guy who runs intel, or the gal who runs intel, the woman who runs intel, i'm sorry, can turn a switch, the problem is, is this is multiple years of falling behind and i hope that they can get a bigger person, because intel is a national treasure. but right now intel is an also-ran geez also-ran >> it didn't happen greatly, it has been a frog in water kind of long-term dynamic. although up 10%. the spokesperson this morning david says the biggest gap higher since '87, believe it or not. >> that is somewhat surprising but again mr. gelsinger gets a lot of positive remarks from people out there and he is an engineer just quickly to go back to his background, a long-time intel engineer by the way, the company's first chief technology officer, and also at and moved

up to the ceo of vmware, and we look forward to having him on to tell us what his plans are for this company that he will be taking over a little more than a month from now. >> amazing, carl, the 1987 numbers, when it went into the black, and when they got out of the d-ram business right then, it makes sense that it could be, it should be up that much. and gelsinger is a strong candidate. i'm surprised he left. i think the spinoff is mid september. i wonder who will get the job. >> we'll see what vmware has to say about his successor. a good point and let's not forget that is a major transaction that is going to be taking place they couldn't do it -- it was announced, but the intent was and confirmed by dell, the sum near the fall, but it can't actually close, as jim said, until much later this year, due to tax reasons but it is going to result in, and dell re-rated up on this,

when they announced it, you know, the 81% they own of vmware that they didn't feel was being adequately reflected in their stock price is going to be distributed, and it will be a fully public company, with new leadership taking over, and we will give them some time, though, jim, prior to, that he stepped down february 15th, so you will have a new ceo by then, heading into what will be a much more public entity as vmware no longer controlled by dell when they get that deal done. >> it is interesting, when you look at vmware and what they've done, they're aggressive in making companies move to the cloud in a very smooth way, and unbelievable relationship with amazon, web services, and what it reminds me of is that intel is an also-ran in the data center, and i think that pat can make it so that the data center will be something that they can take share back. david, i always talk about nvidia, and not just because he's my late dog, and marley, no one near as smart as nvidia, but nvidia, and amd, both made

progress, where intel should have been. and with intel, it's got mobile, and they did a good presentation the other day on self driving cars but nvidia's got that too and nvidia and nio we haven't even talked about ni o. it's 9:40 and we haven't mentioned nio. >> and carl said, they're continuing to pour a lot of effort into their ev but what about nio what do you want to mention? the new money they've raised >> raise money when you raise money, remember, one of the things, carl, that has happened is, younger people, they believe when you raise money, it's positive. >> you have to put the sunglasses on to look at nio >> connecticut yankee in king arthur's court, and predicting a solar eclipse. making so much money and i'm urging them to take something off the table. and no one wants to listen

find me someone who is selling a little nio here. they're raising it, with a convert. this is not zoom by the way, which is, you know, which is a pretty substantial company nio is one of many companies that makes evs, i don't know if anyone saw phil's tweet this morning, but warren buffett's company is making inroads in ev. plenty of room for ev. ev is only a small percent of the company right now. and the exxon upgrade is odd but short term the oils are a good trade longer term, they're cold. they're a fossil >> a couple of things we've not mentioned, jim, and it just gets pushed out of the way by politics and intel target, some retail numbers on holiday comps up 17. and digital up 102 jim, i know you're watching that >> yes. >> also the downgrade of pallentine and going to sell, as they take the target to 15 from 10 but

that is a name where people have made cash. >> and there is a lockup expiration that will come two days before they report their q4 results which is on february 13th, i thought there was a pretty good piece talking about deceleration of growth, growth has been extraordinary, and why are people not selling it? it is one of, in david's introduced me to this, it is a dark web, so-called favorite >> yes. >> rather when reddit decided -- >> very dark out at 4:30 when people start trading this stuff. >> oh, i watched this thing at 4:00, and it trades like a banshee. >> odd. >> but david, the new investors like to get the early bird, the early bird gets the worm and they don't follow wall street research they follow sites like reddit. >> there is a site that just exists to bash shorts. >> but jim, i don't want to lose site of this citi downgrade. i mean $15 price target.

they see this stock getting cut in half. >> i see what you're saying. >> it is rare to see that from a street analyst. >> rock paper scissors, david. citi's paper, reddit is scissors >> listen to reddit, not citi. >> who is in control >> reddi. >> they're in command. >> i don't read -- >> hey >> hey, jim, really quick -- >> yes. >> while we've got a minute, let's take your temperature on j & j, because again, there's more consternation about why we're not getting p-3 data if not in january, then in time for the jpmorgan health care conference, we had this discussion back in thanksgiving time, when goldman, i had a down side scenario that maybe their vaccine didn't work out. you still don't think that's the case. >> look, j & j said the following in the "new york times," we're not ready to release the numbers month by month at the moment as we're in discussion with the fda.

i don't see that, and not necessarily that they're going to be a short fall, there's, i think the reason why the stock is not down is because the story from j & j's side is rather, not confirmed, i would say this is just an unconfirmed story. now, look, the times could be spot on and make maybe they're right but what the company told the "times" would not let you conclude the story that johnson & johnson might expect it, and there are people who expect it, sure, but it doesn't necessarily, with what i read, that they will be late and we are confident in our ability to meet our supply commitments. provided the data from the phase three results. we are confident we can meet our contractual obligations to supply our vaccine candidate to the u.s. government. i am trying to figure out why

the stock isn't down, and that's the answer that johnson & johnson is saying. i had emergent biome the other day and they have a deal with j & j and i'm totally confident with j & j with the emergent bio, made a ton of vaccine when it is ready and maybe the vaccine is not as efficacious, i don't know, maybe it is not as efficacious as the moderna, and the moderna and pfizer numbers are extraordinary in terms of the efficacy. >> they are. >> and it is in favor of one shot. >> yes, one shot does matter >> as i say, when i get my shot today at 12:45 >> that's a big deal, jim. >> it's easier than going to florida. >> con grates. >> let's see what it's like. if it is anything like the rest, rather than the distribution, i'll miss tomorrow's "mad money" too. >> at least you got it and good to have seven people working computers for you all at the same time. >> i didn't say anything about this thing. >> can we get them to get to

work, providing -- >> i mean i never claim to be a juryisdoctor. >> and you claim to use the alternate. and maybe what about all of these 70, 80-year-olds who zoo know how to do it? >> they should get their 5-year-old grandchildren and get it done. >> i know. >> on a positive note, the fed's board says that the fatalities per day, likely at a peak and we will be getting a lot of fed speak today. let's get to rick. >> lots of fed speak today and to me, the most important thing is lots of 30-year bonds up for auction today as well we will have 24 billion up for auction at 1:00 eastern and i hope so. fed speak addresses supply, and what is completed this week, but should interest rate goes up many watched ken this morning talking about servicing the debt in the future, it could be a very expensive scenario. that merits a lot of fed speak look at the intra-day of 10s,

after 8:30 eastern, we had a bit of cooling in the december consumer price index, especially on the food and energy, not a huge deal but up 0.1 instead of 2. and these numbers are somewhat elevated but not more than expectations so the market gave up some ground we were up five days yesterday it was not up six. it reversed a as a matter of fact, right now, we are down three basis points and 184 and 10s continue to lead the way. look at a one month of 30s and the reason i want to show this is because it's certainly starting to give up some ground here, after going up unchallengesed it's not guns hot anymore. we've broke the street and it is interesting to see how the entire complex of fixed income treasurys respond after we move all of the supply today, and that is key, because many are looking to get good location, they had no idea of course that we would continue to

see such strong gains in yields which of course which was broken yesterday. dollar index, well, look at where we have the dollar index a bit light to treasuries, if you look at the left side of the chart, that closing level on the far left, was a 32-month low close for the dollar index so yes, we're up a little bit, but we're, what, less than one penny off 32-month lows, and that isn't necessarily enough cushion, many are still a bit nervous that the short covering hasn't given us enough upside in the dollar and many watching the pound after the december 31st official brexit and there is a lot of optimism to be had. we're trading around 136 1/2 now. the pound looks really good, especially since mid december but if you go back to the boat, which is about the third week of june of 2016, you can clearly see, we're in much closer 149 now, 136 1/2 now, and we may be looking good, but if you really look in the rearview mirror, we gave up a lot of ground. carl, dave, and jim, back to

you. >> all right, rick, thank you very much. take a look at the way in which intel opened today got to 60 1/4 on news of swan's departure. which is now official. it has settled back now to 57 and change we're back in a moment

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i feel the trade okay going through the court system to try and get some results, he exhausted everything it was over. biden's the president. biden should be in the white house. last wednesday was a disgrace. it should have never happened in this country and if it doesn't break every american's heart, something's wrong. it breaks my heart for sure i didn't sign up for that >> that's what's been going on, on "squawk box" early this morning. we see not only corporations but private citizens trying to distance themselves certainly

from the events of last wednesday. >> kim is a very hard sell as always, he plays wit a totally open hand. a good friend of mine and my wife and i feel that, david, what he was saying is truth so to speak as opposed to this era, where we have different kind of truth. i think ken is saying, let's go back to the idea of truth. shared truth. >> shared truth. >> yes, that would be a very good thing for our democracy unfortunately, that's not clear to me it's the case. you see liz cheney, number three in the house, people are asking for her resignation i think, different parts. it's going to be, carl, what the republican party is going to look like on the other side of this is also going to be important and i guess fascinating to watch, to put it nicely >> wow, david, that's nicely >> yeah. >> yeah. and implications for how biden

implemts policy, guys. jim bloomberg has a piece out this morning saying he will attempt at least at first to package the stimulus deal, which we should get details on tomorrow, through a bipartisan measure rather than ram it through on reconciliation. rtnlfove huge implications ceaiy r stocks and american profits we'll take a break here. i hear the music we are back in a moment.

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let's get jim to stop trading. >> last night it was kb holmes the gross market was tremendous. net value order rose 50% a backlog of 53% average selling price to 4 and a 13,000, orders 72, wow, a lot of west coast there remember, rates are still low. i think there are a lot of people who think reits are going to make it so that people are discouraged, people will come in and buy very quickly i say, c'mon, rates aren't up that much and homes are still at a premium in an area of

destabilization. >> i know people think if you don't catch it now, you will miss your best chance. >> i think that maybe j. powell is laughing. a lot of people are thinking rates are going up i'm not against that what matters now is the price of the home and maybe with salt, maybe the deductions will change under biden. so that is a good reason to buy it if we get assault change, who knows? everything is up in the air. >> there's a lot of unanswered questions, at least for the moment, jim. what's up tonight? >> i have this company that's done a remarkable job. i am sure you know michael weiss from his competitive days, kristen peck, bob peck's wife, she's done a great job at zoetis everyone wants to see the lion ceo in the dark?

can you reveal what you have to say? maybe it doesn't matter? the married men have spoken. >> it happens to married men. >> the married men are doing fabulously the people selling pellantier, i will get to reddit, research department i'm not sure who is running it right now. >> jim, we'll see you at 6:00. >> you bet >> mat money with jim cramer i'm carl cantania. we watch the house vote on impeachment again, the dow is barely moving. s&p seems magnetically stuck at 3800 even with new highs with caterpillar and gm the road map on the president, just one week until biden's inauguration, the hours, the house, rather, just hours away from likely impeaching trump, warp time. plus, bob swan is stepping

down pat gelsinger will be taking over we will give you more on that. the exclusive with the governor of nebraska, pete ricketts, talking rollout, policy transition and so much more we got a big show, right, carl >> we do i'm not sure how we will fit it all in debate has begun on the house floor. we have tiktok and what to expect later on today. >> hi, the outcome of the process we will see is clear a majority of lawmakers say they will support impeaching president trump once again this time for incitement of insurrection the article is four pages long it accuses trump of threatening the integrity of the democratic system, interfering with a peaceful transition of power and it concludes that the result is that he has betrayed his trust as president now, we accept the procedural votes and the deba it to take several hours. the final vote on impeachment won't happen until later this afternoon.

the big question is how many republicans are going to cross the aisle and vote with democrats? already five gop lawmakers have come out in support of impeachment, including the care woman of the republican conference, liz cheney others are calling for censure, instead, in a letter to congress last night, vice president mike pence rejected the call to invoke the 25th amendment and remove president trump from office and he warned lawmakers to avoid actions that would further divide and inflame the passions at this moment this morning, house democrats said they would send house articles to the senate as soon as possible, perhaps even this week two-thirds of the upper chamber would be needed. currently, there are only two gop senators who publicly called for him to leave office, pat toomey and lisa murcowski. the other is whether it could derail by another covid relief package. leadership is vowing to work around the clock to get it all done back to you. >> thank you more on the latest, of course,

we will be following so closely today. so many different moving parts but in the corporate orld, als some important moves something we told you at 9:00 eastern has been confirmed by intel. the ceo bob swan will be removed and replaced by pat gelsinger on that day intel in a release put out at 9:37 or so said it expects to exceed its previously-communicated guidance for the fourth quarter on 2020 revenue and earnings per share of course, the company has been under a great deal of pressure when you go back and look over the stock over the past few years as it has lost its manufacturing leadership to the likes of samsung or taiwan semi. we have been talking a lot about it in recent days or weeks, in part, because of third point and an activist campaign that it began at the company very much unclear, by the way, where that will be left. the nominating deadline for

directors is the end of the week and while dan lowe is apluding this change, it is unclear whether he will nominate a few more directors perhaps for the board. the market applauding this morning the overall appointment of mr. gelsinger again, he was a long-time intel employee, he was the company's first employee technology officer. he was there until 2009 until he left to dell and emc and ran to vmware, which will become a fully public company much later this year wendell is exp-- wendell is expected to lead it in that way. again, he's been ceo of vmware since 2012 and had a long history as well at intel, 30 years, becoming the chief technology officer of the company and driving key industry

technologies such as usb and wifi he was the original architect for the 406 process or for morgan and he is an engineer, which many said is necessary mr. swan was the company cfo when the ceo was asked to leave the company as a result of violating policy >> yeah. >> swan didn't want the job, didn't want the job. >> that's right. >> then took the job now he will be leaving the job >> yeah. i remember going back a couple years ago, i remember on "squawk alley" multiple times bob swan saying he wasn't interested in the job. then, of course, that changing i also remember not to steal thunder from "squawk alley." i'm sure they will talk about this in the next hour, i remember john fort flagging or raising the question of pat gelsinger at the time they were looking for a ceo and he would be a good choice and gelsinger on twitter responding to that at the time

invidia shares are flat to the downside but amd is down about 4% right now, presumably, in part, at least on this news remember amd has taken market share from intel in the midst of all of these production lows over the last couple years that swan did inherit and still has continued to be such an issue that i think has brought us, in large part, to this point. also vmware shares are under pressure on this news, too but it will be interesting to see, i think, carl, what does ultimately happen. one of the thing i keep a close eye on is the manufacturing part of this. and what that looks like now under new leadership and given the activist's pressure in terms of some of that domestic manufacturing, whether it gets outsourced what is left in terms of domestic manufacturing for intel and whether that now gets outsourced even further. because that does, actually, at a time when we have these tensions between u.s. and china and chips being from a tech standpoint central to those

tensions, it does raise those national security questions as well. >> yeah. to david's earlier point about him and his engineering background, gelsinger, that is, go back and look at his bio of vmware he holds eight patents so it will be fascinating, morgan, to see you whow he puts that to work >> absolutely. intel is leading the dow, it's up 8%, but largely major averages are really hovering around the flat line so take a look at the market action, more broadly, and what today's d.c. events might mean for stocks joining us the chief equity strategist, david kostin great to see you today >> thank you, thanks for inviting me. >> there are so many macro i guess stories. the drama in d.c., the anticipation of what an incoming biden administration will look like from a policy and market

perspective as well. on some of all this, we have the rises rates story playing out. what is dictating the narrative? what has you the most concerned? >> well, i would say rates are probably the issue we are focusing most of our attention on morgan, for the last 29 years, we have had a goldman sachs set of conference across europe. i always refer to it as a napoleonic march we have always done this the second week of january obviously, with the pandemic, this year, we had to do it remotely so we did a virtual set of conference was we had 5,000 people participate yesterday. we had interaction and we did survey a couple of the macro-questions we put there and morgan, to your point, one of the first questions was, what kind of rate ten-year treasury yield did portfolio management in europe expect for the end of this year? and most, more than half, were expecting somewhere between 1

and 1.5% there was some expected it higher but the bulk of the portfolio managers expect 1 to 1.5%. our forecast, in fact, anticipates that rates perhaps could go as high as 1.5% by the end of the year. our biggest concern, the the way to think about it is if interest rates were to back up by say almost 40 basis points in a month, that's really the tipping point. above that, you tend to get equity markets go down whereas, if you have a more modest rise, which leads people higher to go in a more steady raise, that is more consistent with equity markets going higher. that is i'd say the biggest issue from a risk perspective in that market now. >> that's a key point. i guess from a historical standpoint, we were talking about low rates. it's the velocity in which we have that increase the comments from fed officials, the debates that are playing

out. we have that inline with expectation cpi number today you look at agricultural commodities, for example, those are spiking. where do you follow in this debate more broadly around risk to markets >> so my colleagues have the faith that there is not much inflation. we are not seeing it there is obviously some data points at any certain time you can focus on ism prices paid, for example just a lot we don't think that's reflective of who the underlying trend in inflation is therefore, the idea of it likely to be early 2022 event as opposed to later this year i'd say that's a topic of conversation that comes up a lot with clients the steepening of the curve is i think the more interesting dynamic. we're just not seeing a plot of the inflation basically happen, inflation's medical costs and the housing, just not seeing that increase that's in our model would be, you know, suggestive of a risk of higher

rates. so from an equity perspective, we have earnings that are going up there is quite a lot of operating leverage i think the most important sort of message and discussion point with the client is we are record-high levels of operating leverage in the market the highest in ten years, specifically but it's, you know, super high that means each incremental dollar of sales is magnified at the event level or the earnings level. that's i think an important point of how we think about attacking or investing in the market in 2021 we are looking for companies with very high degrees of operating leverage those tocks, once the pfizer biontech of the vaccine came forward, they rally a lot. they are even to where they were a year ago we think there is more upside on that basis where do you find companies of high degree of operating leverage certainly a lot of industrial companies, some of the more cyclical aspects with the consumer, the retail.

that's an area that's likely to benefit most from an improvement in the economy we're not seeing the inflation you got low rates. economic activity on the path to more normalization with the vaccine. it's a forward part of our assumption that's going to get rolled out i think that's the best strategy at this time >> that was my very next question to you. i think you just sort of hit it, this idea of re-opening inflation trade within the market right now shifting gears to d.c., in terms of policy and what a biden administration could mean for the marks, obviously, all eyes on a potential economic agenda, what that can mean in terms of additional stimulus tomorrow what are you expecting how do you balance that against what could be potentially greater regulations? higher taxes >> so i think it's a mid-term longer commission. mid-term, we are anticipating more fiscal stimulus another round of that, which would be beneficial for near-term economic activity. you got accelerating growth into

the second quarter that would be consistent with a couple of things higher level of earnings so, for 2021, our forecast with s&p 500, you got earnings of around $178. put that in context, the consensus is around $167 that magnitude of positive earnings revision potential we think is what helps lift stock prices that's one of the near-term issues that you get some beneficial tailwind from stimulus then you look at the potential for, you know, how do you pay for that what's the prospect of higher tax rates? corporate tax rates. >> more than likely to take place now with the new control of the washington, d.c., that's let it being implemented maybe later this year, but more specifically in 2022, it will be a little of a headwind from the growth rate. still a higher level of profits but at a slower pace so put some numbers around that, looking at 30% earnings per share growth this year, 10% in earnings

percent growth it's not the best way to analyze the situation right now. i think it's really important to think about the level of profits now compared with pre-pandemic in 2019. that is the more interesting analysis because it shows where are the companies that are going to sort of get back and you know return to a level of profitability they had before the pandemic. some companies are expected to have earnings that are 50% below. that to us is where the greatest amount of positive earnings is coming from, that potentia normalization to come. so i think the level of profits again, our view, is you got $165,000 earnings that was generated in 2019. we're looking for $178 this year so that's obviously looking through the tragedy of last year that we are actually seeing a better economic backdrop that's i think an important part why we have the market fund higher >> david you mentioned that your

conversations with a lot of fund managers they're concerned inflation will be higher than anticipated i feel we have that conversation at the beginning of every year only to end the year with the so- ten-year not moving at all, not going down in yield. >> that's a great point. that's always a concern. the concern is that inflation is around the corner. we haven't seen it the fed is less than 2% in core pc for basic ally a decade i'd say an important point is the fed will be on hold for the next four years, until 2024. if you have the fed at the shortened of the curve basically putting rates at a super low level, i think that leads us to a couple conclusions number one, david, there is $5 trillion in money market mutual funds to date. $5 trillion. that's a trillion dollars more money in money market funds today than a year ago. yet rates are now at zero. so that tells to us if half,

more than half of all the money market mutual fund assets are owned by households. at some point, getting zero return on your money, will you get that shift up the risk premium curve. we think a lot is going indefinitely that's number one. number two, i think it's a real reason for the explosion in the stockmarket because the opportunity costs of owning cash when you can own a stack, which as you well know, structurally, the shares are roughly $10, you are basically going to accumulate whatever minnium yield is taking place. until there is an acquisition, you have the two-year window and the put option and the warrant behind it. so why would you own cash? so the explosion in the stockmarket actually corresponds in the third and the fourth quarter when you saw all of these issueants. that is the number one issue number two, all those stacks are shifting, the sponsors are shifting their focus, have shifted their focus towards growth industries, more

consistent with cad or some of the consumer where historically the stacks were focusing in energy and value sectors and all the pipes happening. again that capital raising, that's been a big story behind the 2000, the last half of last year looking into 2002, '21. >> good context right there. david kostin, thank you for joining us today >> thanks. a couple big names to watch this morning, airbnb announcing a few moments ago it will block d.c. reservations during the inauguration and eliminating users associated with hate groups from the platform, stocks actually getting a boost on that up 5.7 we have an ipo to watch and affirm making its market debut on the nasdaq, indicated 90 after pricing at 49 we are back in two minutes >>

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welcome back to "squawk on the street". we are awaiting affirm we have more on the story for us r. hey, morgan we have petcoand poshmark. we see one unicorn graduate, another is quickly rising to take their place this year is kicking off with

start-up values at a billion dollars or more. new data from insights says the uniform population climbed to 225 last year, a liss historical record it led by spacex and stripe and instacart. it has booming demand for grocery delivery but it is not just private markets anymore but showing these larger and larger valuation where wall street used to be a check on what some would call fros-- froth justness. pelantir tripped the golden age of unicorn, the m afternoon afternoon r exits

declined for the second year and ipo quickened in the fourth quarter. that could raise some questions about the quality and maturity going public start-ups you know very well more ways than ever to go public the timeline remains robust, robinhood and coinbase are all expected to debut in 2021. >> you hit on such a key point which is not just how strong the performances of these companies that have gone public in this past year have been but also how the stocks fared through locked up expirations and now a couple names even secondary offerings i guess how much investor demand for these newer tech-centered offerings? how is that propelling these companies to think about some of the ways and experiment with some of the ways they are going public in terms of, for example, lockups and stocks to employees and faithful consumers and

contractors, et cetera >> yes that's a good point, morgan, you don't have the traditional ipo stacks and direct listings you have different ways of the traditional ipo like that hybrid pricing model we saw at the end of the last year with some of the big names. however, using technology no figure out a better pricing method hasn't been all that affected you are seeing some companies like abnb and doordash soar before the first trade you do see a bit of caution. remember roadblocks and aforeign minister going public today, now. they sort of put their plans on hold and road blocks, in plarks said let's look at this pricing model and at least understand it a little bit better. so you may see that continue this year, certainly, to market by a stack is causing some of the younger companies to go quicker than they may be would

have in a traditional ipo. so a lot of these issues will continue to be worked out this year, no doubt >> dee, it's been an amazing story. as you said, coming up in the next hour of "squawk alley", do not miss our interview with max levchin of affirm. meantime, dow is up 24 we're back in a minute it is now time for atf spotlight. ticker up, getting a big boost from tesla and amazon. not surprising there another big contributor, target announcing same-store sales went up 17% over the holidays that stock is up more than 60% over the last 12 months and really given a strong read i think on the consumer and the holiday season we're going to be right back stay with us

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today as the ceo announcing an 11% reduction in the work force about 315 jobs the company's coo departing in early february the stock lost high flying work from home rivals over the past year up around 27% nasdaq is up 41 in the same period a. lot more "squawk on the street" continues after the break. stay with us competition beat us, again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. got to do something. workday! i think i got something. work... hey, rob, you're on mute. hello. [all] hey... there he is. workday, the finance, hr, and planning system

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welcome back, everyone, i'm sue herrera, here is your covid update at this hour a. new one-day high for new covid cases. john hopkin's had the third day in the last week the toll has been above 4,000 since the pandemic began, more than 380,000 people have died. that's about the population of cleveland and it is approaching the 407,000 americans who were killed in world war ii dollar general is offering four hours of pay to any person

that gets a covid vaccine according to "wall street journal" making it one of the first plo irto offer that incentive. the ceo tells the journal he wants to brake down barriers to getting a shot. china today had its biggest covid cases in more than five months 115 new cases versus 55 the day before and four cities there are on lockdown. members of the world health organization team, that's japan's representative right there, leaving their home countries and heading to china to investigate the pandemic's origins. are you up to date that's the update right now. david, i'll send it back to you. >> thank you, sue. covid-19 hospitalizations in nebraska declining to half the peak they saw in november. joining us to discuss the distribution strategy is the governor of the state. good to have you this morning. >> thanks very much. >> give us the latest on where things stand in terms of the virus, itself. i just said things peaked a

while ago, are they continuing to look better i assume, obviously, you still have to be concerned >> certainly we still have the virus as everybody does so we're urging everybody to continue to use social distancing, wear masks, wash your hands, all that sort of thing. we reached our peak november 23rd and we are down more than half the number of hospitalizations that's really been our benchmark to make sure we can provide a hospital bed, icu bed or ventilator to anybody when they need it. we have been able to do it successfully in nebraska. >> it seems you have done well so far in terms of getting people vaccinated. if i am 65 or older in your state, am i going to be able to get a vaccine soon >> obviously with the cdc changing the guidelines yesterday, we will look at accelerating the 65-year-olds as a part of our vaccine program. we are ranked about number five right now with regard to the per capita percentage of people getting vaccinated as well as

number five as far as getting out into arms, to distribution and getting people vaccinated. so, we have done pretty well so far. we will continue to work to be able to get this in as many arms as quickly as possible. >> where do you stand in terms of the supply? is enough coming into the state from the feds? >> yeah. well, certainly, we would always like to get more when we have been on calls where we understand they will be accepting out the second doses for us to manage so we will be taking a look at that to see if that gives us the opportunity to bring forward some people to be able to get inoculated but, of course, we want to make sure that we can always get beam that second dose, because that's how we ensure that they will get the full effectiveness of the vaccine. go governor, as you were talking, we got headlines out of johnson&johnson, with regulators on approval. they've begun production and are confident in their ability to meet supply commitments for the

year in your view, does j&j move us from second gear to third or fourth >> absolutely. the more that we have companies producing vaccine, the more vaccine that we have available the faster we will be able to get it out and get it distributed to citizens. this is the way that we get through this pandemic is getting people inoculated so the virus can't spread any more. >> in terms of timeline, the incoming president biden says that 100 million in 100 days does that seem reasonable at this point >> well, it will depend upon the availability of the vaccine. you know, we're working to be able to have the infrastructure in place to get this into as many arms as possible. i think what you will see is the vaccines are available to the states that they'll be innovative with regard to how they get that out. i was on a phone call last night for example with arizona governor doug ducey, he was

talking about setting up at a sports facility to do mass vaccinations, that sort of thing. i think you will see governors and states be creative if we have itavailable to us >> shifting gears, given the fact we are a week out from the biden, president-elect biden's inauguration i mean, we are seeing calls for protests at state capitols across the country right now how are you planning and preparing in nebraska? what does it mean from a preparing standpoint and cost standpoint >> protests are nothing new. certainly, we had a number of protests last summer as well so we are taking the appropriate precautions. you know, we will be able to handle them like we do every other protest. i am certainly encouraging people to protest peacefully that is the american way, not the violence we saw last week or last summer. we need to remind people that they can exercise their right. they have to do it in a way that will be peaceful.

>> yeah. do you anticipate that this will be a peaceful act? obviously, it's a heightened environment. we seen what's happened with crackdowns on social media with incitement to reports of incitements towards violence right now? what are you anticipating? what are your worst case scenarios? >> well, we had protests here last week. they were all peaceful >> okay. >> i would expect if we have protests next week during inaugural racing week, it will be the same thing. >> when it comes to your party, the republican party, as we watch the house move towards impeachment again of the sitting president and a significant debate that will take place in the senate what are your thoughts about the future of the republican party right now after president trump leaves office? >> well, i think one of the things that will be important for our entire country is that we come together we all want the next administration to be successful. right. the success of our country is important to everybody and i think that, for example, i don't think this impeachment process does that. it's not a process of healing.

it's a process of division and certainly serves no purpose. we ought to be focusing on a smooth transition to the biden administration and how we can help the next administration be successful for the entire country and republicans will be a part of this and we need to work with democrats to make that happen. >> it serves a purpose in that it will prevent president trump's never running for office again, which is certainly a possibility in 2024. would you not support that as a positive outcome >> actually, i think this whole future process is very divisive and bad for the country. so, you have to weigh out all and i think it unbalances a bad decision by the house to pursue this >> governor, i appreciate you taking time. thank you. >> great, thank you very much. >> later today on power lunch, co-founder milwaukee bucs wes edens joins me to discuss the 500 bundle for the clean tech

energy company, shares for that company are up this morning. also, we will talk markets and valuations, what a biden administration can mean for business and infrastructure. we will talk a little more we'll be right back. stay with us >>

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. one trader has that's out of the box way to play the ecommerce boom check out cnbc.com more "squawk on the street" coming up. ♪ ♪ ♪

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percent away from record highs you saw last friday. upside standouts so far today is utility sectors behind me up 1.25%. the traders using some of the recent weakness to pick up shares here. today's pullback in rates helping to drive the dividend yields of those utility stocks to more relatively attractive positions, at least in the short term those gains led by necxtera and american water and they are far and away the best performing utility stocks in the subp&p 500 >> take a look at that with the utilities. dom chu. thank you. let's go over to the rick santelli exchange. hey, rick. >> good morning and thank you. you know, we had a lot of fed speak as of late and, of course,

the fed has been trying to guide the economy through an historically tough period. we haven't had an epidemic of this nature, obviously, in over 100 years. it's very tough, of course, to reconcile all this self-inflicted damage to our own economy to protect the health of our citizens these are tough choices. the fed has said many times they are committed to lower rates and they are the problem is, can the market make the same comments are the markets committed below ra it? the fed can control short rates, indeed, they can control any yield curve through quantitative easing it's a toll they need to use sparingly. believe me, they know it that's why the microphone sometimes becomes as powerful as some of the actual tools they're using and the policies they implement. remember, markets don't have commitments. investors are what you should be concerned about and their activity in the market pushes

rates where rates need to be ultimately, no amount of qe will stop investor sentiment should it become one sided or not right now, we have actually stopped the momentum with higher rates. we are 109 it's down 4 basis points let's go to the whiteboard i used this chart yesterday morning. i said as long as it's hot we can see these sooner than later. something happened we have turned the market down we have protect the momentum so we are not guns-high anymore. i granted the last event major significant high yield close the fact of the matter is we haven't gotten there like a hot knife through butter as it looked like we might until things change. i still think this is ultimately where we are going between then and now, there is something important i wanted to bring up see these two yield levels these were the big double bottoms in july of 2012 and

2016 those were huge. until we really got into this kind of covid episode, those were the levels to watch so now that we have started to put some consolidation in what was really a high momentum move. i would think that these levels are the biggest assistance outside 119. i would say on a momentum, we've lost a good deal of it it will take a lot longer to challenge key rates. here's what you want to really know the committed to rates, the market not necessarily so. iss issuance, this is the last of a 120 billion package. every other week we have a package of 2s, 5s, 7s. that's record in size. now if you look at the national debt clock, we are approaching $28 trillion and every half a point, every 50 basis points yields go up it's going to cost hundreds of billions of dollars to ultimately service the debt.

almost 84,000 per citizen in debt 222,000 per taxpayer we're at currently 130% debt to gdp. we know right now money and all these numbers don't matter we want to make sure people are fed, heat their homes. somebody needs to worry. on the back side of this, the federal reserve will have to deal with the market's view on rates. it might not necessarily be in that direction morgan, back to you. >> that's right. at some point, you think it's going to matter. i tell you, it's not a day, a full day of cnbc programing without one of rick santelli's hand-made, hand-drawn charts thank you. the nhl, meantime, is back on the ice, kicking off it's shortened season we will speak with the arizona coyotes on the league's challenges like that billion-dollar shortfall that's expected that's coming up next. stay with us

the puck drops on a certain nhl season tonight as the league announces ten different players on nine different teams testing positive for covid-19. joining us this us this morninge ceo of the arizona coyotes, xavier gutierrez >> good to see you, carl thank you for having me. >> we checked in with you a few months ago and have watched league after league try to dance between the rain drops of covid-19 how comfortable are you going into this season >> well, you know, we're obviously dealing with this incredibly terrible pandemic, a health crisis and economic crisis but we certainly are excited about dropping the puck tonight, and we start our first season game tomorrow against the san jose sharks. we've been working on these protocols of health and safety with keeping that top of mind

for several months i do applaud the nhl and the other clubs around the league that have been focused on health and safety as the first priority >> how would you tell fans -- what would you tell them in terms of what to expect as to what will be different >> it's an unprecedented situation we're all facing we, as you mentioned, are one of a handful of teams looking forward to welcoming fans in in a a very limited capacity. the city of glendale, arizona, has given us permission to have a maximum of 25%, which is about 3,400 fans and it's been comprehensive. what we're bringing to the table in terms of protocol is facility, an entire comprehensive protocol system from circulation to entrance and egress for fans. we'll have folks in two and four

pods, suites of only four and six people masks throughout the entire venue. and then a number of tech-enabled products we've been excited to deploy to try to keep people safe, everything from partnering with clear on the clear app to manage biometric data in terms of health screening, to a contactless and mobile environment your tickets, your parking, your food and beverage, merchandise will be contactless, on one app, our app we partner with venue next, a tech company and flexible spending accounts for season ticket members to utilize their accounts this season or next season and give them flexibility on your food. so it's comprehensive. i have a binder for the league office we've been going over and over for the last several months we can try to mitigate it and

manage it and do so in a safe environment. >> what does that mean in terms of fan demand? if you make it, will people come >> absolutely. with our season ticket members and corporate partners we anticipate and then it's a wait and see. we're looking forward to letting fans in on a single game basis and we're seeing some robust -- i think people want to get out and support the fans we're focused on that. >> nhl commissioner bettman expects the league and its teams to lose more than a billion dollars this year. how are you thinking about, i guess, that impact, the

financial impact for the coyotes? and how does it speak to how you're getting creative in terms of maybe perhaps additional or new revenue streams? the sponsorship rights on helmets, for example, comes to mind >> absolutely. you're hitting the nail on the head it started with the league allowing us to do sponsorships on helmets, on our practice jerseys. we're going to have tarps and have been trying to do partnerships with logos, digital dashers which will be seen on television nbc is our partner for national broadcasts you'll see digital advertising there. and we've been looking outside the box in terms of corporate partners a ppe provider that we thought was innovative as not only a corporate partner but community. we're trying to be innovative.

>> what about your ability to assign new players and younger players? will we see things stay as they are now, xavier, given the restraints teams are under >> sure. david, as you are probably aware, we signed a long-term collective bargaining agreement that did keep the salary cap flat for some years. so there's been some efforts to try to contain costs while still remaining competitive and keeping the entire league really moving forward clearly this is an economic crisis we're all facing and sports has not been immune to that we're trying to do the best we can and going forward with vaccinations and improvements on managing the health crisis will help improve the economic crisis we're facing finally, xavier, anthony fauci had some comments about widespread vaccinations and said

that arts organizations, for example, could theoretically, in his view, start to receive spectators and fans in the fall. at this point is it too early for your financial team to start gaming out capacity for the '22 season >> we've begun to look at that we're focused on let's take it game by game, month by month let's deal with this sprint that we're going to be on it's not a marathon. it's 56 games in 116 days. we're focused on getting through this, keeping everybody safe and healthy and being successful and hopefully bringing a stanley cup to arizona >> my favorite was the quote from the coach of the caps who said that now that he has to wear a mask, his mom wouldn't see what's coming out of his mouth. we look forward to the puck drop, xavier thanks for joining us as always. >> guys, thank you so much really appreciate it

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good morning it is 8:00 a.m. in santa clara, california 11:00 on wall street "squawk alley" is live ♪ ♪ ♪ happy wednesday. welcome to "squawk alley." i am jon fortt with carl quintanilla and julia boorstin intel naming a new ceo our david faber breaking the