friday morning we are in the red across the board with the dow looking like it will open down about 216 points nasdaq off about 73 points and the s&p 500 looking to open down about 25 points. have a great weekend, everybody. and make sure you join us next week, on monday, "squawk on the street" begins right now good friday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber and jim cramer our futures are under some pressure thanks in part to ibm and intel. even beyond that this bearish macro call out of b of a is making waves along with more republican resistance to the president's stimulus pitch the road map begins with the intel and ibm drag on stocks, tech, a pandemic favorite for investors but the two tech giants failing to impress with their quarterly results. plus, the biden economic agenda, turned to nominee janet yellen, leaving the door open to

a tax hike, and big techs, extremism pushback, a federal judge blocking parler's move to reinstate its use of amazon web services. let's get to jim talk about big tech. jim, i know you're covering it with andrew, and becky and joe, and it sounds like maybe you believe the more important story of the two is going to be intel? >> yes, it was a sobering call they've got a new ceo. pat gelsinger on the call, vmware, 30 years at intel, before taking that, and talking twice about being back at home that's how he identified intel but home is sobering because home is a place that fell behind amd. they haven't been able to make this seven nan meetometer, there was discuss about the three nanometer, done offshore, done with taiwan semi it was a sobering call, carl, because it was about a company that was the leader that is no

longer the leader, and they took the stock down themselves, because they were very, let's say, honest about where they were in terms of production of the most important chip, and david, sometimes you're on a team, and the team doesn't win, and it's a team that's won and won and won, and intel was, they were the yankees, and they're not anymore, and it was very tough to listen to david, i don't know, the mets? >> well, first of all, if they become the mets, then they're in good shape. >> okay. >> and i can spend the next two hours going through all of the reasons why, but this is not wfan so we will not do that at this moment. but i would mention the stock was up, what, 7% going into the close because -- >> listen to the conversation call. >> remember, they reported the earnings while the market was open and the reason they state is because of the potentially a hack that somebody got a hold of, through an illicit action,

that had not involved any unintentional disclosure by the company, they got involved with a graphic from the quarterly earnings statement so the company decided to move forward by ten minutes or whatever it might have been, its announcement and the stock did trade up dramatically on the revenue beat, jim. so what we're giving up now is only what it gained, even not as much as it gained yesterday prior to the close. >> that's very true. and i think that the people who bought it were just simply looking at the top line and bottom line, saying wow, intel's participating in this incredible chip shortage that's raising everything's prices. >> pcs are through the roof. >> pcs are amazing dell is great. hp is doing a terrific job obviously, apple, the macs are very, very strong. i think that if you want to base a theory about pcs that's fine but you really need data center, and more importantly, intel is a technological leader, so there's

a lot of businesses that they compete against amd and individual, and in both case, amd and individual won, so now pat gelsinger has to be thinking about 2023, and there are people who are wanting to think about 2022, but it's 2023, and if you come back, if you're buying it now for 2023, that is very, very typical, because that means you've got a real value, you got a see-through, great balance sheet, always a company that everyone knows is let's say, deep in the firment of semis but the idea that they won't build their own fabs and once again another outfit that is dependent upon taiwan semi, 55% of the foundry space, all it does is put more pressure on the united states to protect taiwan and people have to understand that in the semi world, it's the single most important thing. not whether restoration hardware makes its furniture in vietnam,

it's about protecting taiwan because if taiwan semi were cut off from the united states, all the companies, all the companies that make chips in this country would find, you would see that we don't really make chips, we just make the -- >> he did say on the call, gelsinger and it was interesting to have him on the call as well, it is like 2022, they still expect a majority of their products to be made internally. >> the three nanometer is the key one. >> which they're not anywhere near. >> it is interesting, they missed the seven. >> they missed it. let's take a listen to mr. gelsinger with the call. >> i am pleased with the health and the recovery on the seven manometer program. i am confident that the majority of our 2023 products will be manufactured internally. at the same time, given the breadth of our portfolio, it's likely that we will expand our use of external foundries for certain technologies and products >> so they will use some outside. >> believe it or not. >> and to your point, jim, and it's an important one and something that the biden

administration, we will watch closely, how much of a national champion do you make intel by the way, that was part of the thesis of third point, when they got invested in the stock and they've done fairly well they didn't end up nominating for the board. they had some people but they got the guy they wanted which is gelsinger in the lead role, the incoming ceo, but that continues to be part of the case here, that eventually you will have to coalesce around intel as your national champion around chips, because of the very things you were just citing. >> right right now, it's mike, micron, more of a comod, and much better than expected. and the people who poo-pooed micron, were left in the dust. and i heard about the three manomeet wer taiwan semi, i thought two things, and when does intel build that plant, a shining, a foundry on top of a shining hill somewhere in america, but i also said that taiwan semi can make it faster and better and therefore they can compete against amd in the

next one people who sold amd when gelsinger came in, they must really have rose-colored glasses because this conference call was about we didn't do it right but we promise we will sobering sobering call. and the swan song for -- >> oh, boy >> bob swan. >> look. i'm going to go to lucent motors if you're going to give me a hard time. >> please. you're going to need - >> that tie. >> carl, he wants to keep getting me in trouble. and i will have to have somebody start my car for me at some point soon. >> lucent, it's andrew, we haven't talked enough about andrew and how well he's doing in all of these spacs. listen, we have a key spac this morning guys that we're sure to focus on which is clii, which is combining with ev-go >> what does that stand for? >> what do you mean what does it

stand for? >> clean and happy >> i know, i know. it's very important. >> by the way, ellis power that owns it, it's interesting, that's david crane, beth comstock is in there it's funny. >> david crane was the first guy. >> right. >> remember what he did? he built all those -- that was his key about why you were supposed to own his stock. >> right so that's clii is one we will get to a bit later and go through the keys of the deal, it is the latest fact du jour >> climate crisis. let's get the merry men. how you can not own climate change crisis. >> climate change crisis number one. >> is that number two? >> global warming, number two. >> carl, there is something going on in this country >> i'm going with the icebergs are melting, number three. >> i like that >> i like that one, too. >> coal is dead. number four. it is absolutely true, carl, that there are companies that

are actually giving themselves names that make it so that the robin hood people like them and let's not forget the wall street bets people who ganged up against andrew, citron, he came out with a negative -- about gme and i've got to tell you, game stock, there are people, on wall street, that are joining the affinity club in order to boost the numbers. i've never seen anything like it, carl the involvement of these investors, in the company, to the point where they're actually buying things in order to make the quarter, carl, i've never seen anything like it. never. >> well, jim, it kind of brings us to an in a round-about way this note out of b of a which warns of an extreme rally on the street largely due in part what they call a dy policy bubble michael hardner writes, when those who want to stay rich start acting like those who want to get rich, it suggests a late

stage speculative blowoff. they already said sell the vaccine back in november '20, jim, and i don't know if it is a bear case, they're still looking at 3800 for year end, if that is having any impact today. >> it is but it's too broad of a brush. we've seen over and over again, that there are people, merry men, and women, of course, who have done a huge amount of homework for the right stocks and have done a lot of research and know more than these gray beards about the companies and they know friends who have been put out of business or friends that have done well and that happens to be snowflake and zoom in the same way, and these kids know these company, it's where they go, they know far more than we do, i do not like the denigration of this group. that said, there are two markets. there are the markets of the climate change, and whether we got, we got some more, david, that's coming up, maybe, maybe david, to the moon, the most

important, we haven't talked about kathy wood, every day at 4:00, you can see what she bought, and then there are people, because she takes in so much money who buy what she buys >> it is amazing to be fair to kathy, she had one of the great calls >> she was on baron. >> i'm not denigrating >> you're not denigrating her at all. and i remember having her on and her target was a number that we couldn't imagine that tesla would ever reach and tesla has reached it and gone beyond it. kudos to er. >> and she did put her stocks up and not unlike the robin track used to do and there are people who swarm in and buy her stocks. that might not be a great style of investing. >> no. >> and do you want to buy ibm? it's very inexpensive. i don't know if i want to because it's got no momentum, but i'm surrounded by stocks right here, with the exception of fisker, that don't seem that expensive and there are other companies that are doing the right things alphabet is going to have a big quarter. more importantly, they are

closing a division, called loom, and this is a big bubble division and wow, that's a big bubble, you should read it, it's in the "new york times," but it tells you what's happening at alphabet they're not tolerating losses anymore. there's real bubble in alphabet. the bubble is in the spacs not alphabet not faang. i think facebook's got a good number i think apple's going to have a good number. amazon, blowout number and by the way microsoft will be good and i think we have to distinguish between high growth companies, with good balance sheets, that are making a lot of money, and then the spacs that i can't even keep track of. >> no, it's impossible. >> we do unfortunately have a spac 50, carl. >> it's impossible. >> we have a spac 50 at cnbc. >> we have a spac 50 it's an index. and we should point out these are all spacs, carl, sorry, that have not announced their deal, okay so conceivebly you would imagine they would all be trading kind of at ten bucks but they're not. they're trading at closer to 13.

i guess is how we're doing it there. but you can see, up 12.9%, and that's where that index stands right now. this is prior to announcing their deal now, soon, we're going to have an index as well that actually comprises all the spacs that have announced their deal. so we'll see how that is performing >> these stocks, the record is almost perfect for these in terms of going up if you buy them a lot of people just think that's too good to be true, david. >> there's so many, man. prima vera >> liberty media 500 million. up 20 times over subscribers 20 times >> 20 times. >> why because greg sends a christmas card to people what do they know about -- >> now another, another spac etf today, we've already got ticker spac today, and today the fresh one is spxz, so a library to keep track of etfs who follow the spacs. >> imagine they sit in there the

room and let's make an index and let's make a lot of money. it's really amazing to print money. it used to be the government's job. >> spac analytics. he must be working 24/7. mr. spac analytics how about antarctica how about the ice flos how about water rising >> no. >> not good. >> save the polar bears. >> yes >> i'm on it >> how about anwar destruction >> that's a previous one. >> speaking of regime, we will talk about what janet yellen said yesterday about corporate tax, about salt, about china, and we have a few upgrade, x peda is one, ford, disney, as ubs goes to 200 and some initiation of names that jim was just mentioned like crofmiost and crm out of golden. back in a minute

♪ you can go your own way ♪ it's time you make the rules. so join the 2 million people who have switched to xfinity mobile. you can choose from the latest phones or bring your own device and choose the amount of data that's right for you to save even more. and you'll get nationwide 5g at no extra cost. all on the most reliable network. so choose a data option that's right for you. get nationwide 5g included and save up to $300 a year on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile.

keynote on janet yellen's nomination for treasury secretary sometime in the next hour, that could potentially set up a final floor vote later on today, which will be the first test of the bipartisan support not just for the cabinet nominees jim but for the $1.9 trillion relief package on wednesday. senator romney had some questions about. it why are we moving so fast we just passed $900 billion. and yesterday, susan collins, how much of this is truly at risk >> the pushback is starting and i

think that, look, i'm not president, but i think that everything about the vaccine is all systems go i think that the stimulus, the money in people's pockets, all systems go, but once again, david, you know the state thing, the republicans, the states are broke, and because i think that only some states are broke, but yeah, kacovid has been an equal opportunity destroyer. >> it has. but it has been an area of a lack of any unity whatsoever >> none. >> and there was obviously not really included. now, there is aid that is going to the states in the form of other types of aid but there is not direct aid to the states to fill, to help them maintain budgets, so that they don't have to lay people off, or make drastic cuts in services, and that's a question. the democrats support. it mitch mcconnell as majority leader of course was not and you heard it sort of being demonized as a red state, blue state thing, and you heard these

word, criminality, somehow in the blue states, it was unfortunate, but that doesn't mean it will move the debate a lot, given the biden administration ask in there. we'll see. >> >> do you think it mattered that both sides were respectable to janet yellen when she was on the hill >> i don't know how you can't be respectful to janet yellen. >> i agree agree. >> carl, i think the problem is that there are lots of people who still believe that there are only some people who are really hurt, and there are many people who aren't, and that's actually true i mean we've got a tremendous, and this is the economy, a tremendous number of people who will take that check and they're going to go buy whatever spac david is about to trash. that's a joke. david doesn't trash spac he brings them to life >> thank you. >> i say that because david is the only one other than the cnbc 50, that actually is spending some time looking at the spacs as opposed to just buying the spacs but the amount of people from the merry men who want to put that check to work, buying unity software, buying crowdstrike, taking a swing at

doordash, and taking airbnb as a bargain, they are real and you see them and the stocks are being shorted against them betting that the merry men will run out of fuel but if they get those check, they won't run out of fuel, they will go right back in and these people are real, i think peoplehave to realize they're real buyers. >> we've been talking about this for almost a year. the excess savings this would be the first recession we ever went into where households ended up coming out ahead. the flow of that money into online gaming. and stocks and i guess the question now is, jim, you got funds last night, saying that covid-19 is in full blown retreat. we have the covid tracking project saying hospitalizations and deaths are starting to normalize. i mean how much stimulus makes sense, the fact that it is getting a little brighter. >> and enough to make the line move for the chiefs?

i don't know maybe 5 billion this weekend i think dr. fauci was incredible yesterday but i didn't feel any reassurance at all, because he's a realist. unmuzzled fauci. what a pleasure. >> the lead of the a. p. story this morning i think is anthony fauci is back. we'll take a break dow looking at gains for the ba ia nu ckn mite o place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪♪ 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 for a changing world. ♪ch-ch-changes♪ what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view.

♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley. it's time for jim's mad dash we have the opening bell, less than seven minutes away, as we are looking for a down open. >> let's talk about the real economy and why i don't think all stocks are overvalued. i think that yoon pacific was down, and we had an interview

yesterday, okay, so, csx reports, and david, excellent add in food, great metals, scrap, fertilizers, we know the farm ser back, and i got to tell you, intermodal is on fire and that is because of coal and automotive automotive is going to switch. where am i going here? csx had a great quarter and they will send it down and then buyers will come back. do you know why? >> why >> do you know what they're doing? >> yes, i do i know where you're going. they figured this thing out. they decided to precision-ly, that's not a word, precision railroading. >> i remember when my father was trying to get boxes and bags, trying to get craft paper from south carolina, i said pop, why don't you use the train, he says no, they'll just lose it >> the late hunter harrison, until he came along, nobody

thought about having precision in the railroad. >> really. >> the guy who followed him obviously also very focused on precision railroading. >> so they can take share from trucks and that's what it is about, because they're on time and do a great job and by the way lant fritz is terrific too i thought the yoon pacific quarter was a great opportunity to buy so i keep saying yes, there are stocks that are really way too high, and thenthere's stocks like csx which are coming, the u.s. economy is coming back, and therefore, they will do better next quarter >> all right we got an opening bell for you. >> are you wearing hush puppies? >> no, these are my regular shoes. what's wrong with them i like them. >> they're waterproof. >> you look like a spac. >> you look like a spac? >> i don't know what that means. we're right back >> well, climate change.

hi, this is margaret your dell technologies advisor to listen, is to hear more than what's being said... and offer the answers that make someone feel truly heard. i understand, let's get started call a dell technologies advisor today.

keep your eye on disney today, and see how it fairs in what islikely to be a tough take, but ubs goes to a buy, jim, 200678 not just pent-up demand on parts in the second

half of the year, but boosting the 2024, fiscal 2024, direct to consumer revenue by 16 billion they were at 27. they go to 43. that's above consensus >> parks and vaccine that is a piece that could have been written earlier, because frankly, this was laid out at an analyst meeting, but if people want a play on a return to normal, it's still disney. it's the best. it's been that way for 50 points analysts i think are a little late to the party. you know they laid this story out. and really incredible. the people who come on board now are those who were skeptical about the company. and management and management's good there. >> yes, upgrading now to a buy, you probably missed some things. everybody talks about dtc. we've been talking about it now for what, two years. it is the key to the company they've delivered, far surpassed, in fact, the initial targets they shared with us in terms of subscribers around the world and they continue to add them at a rapid pace.

>> are they close to 100 >> i think they're 100 million. >> likely close. >> but these guys say, what, carl, they expect direct to consumer revenues to reach 43 billion by fiscal year 24. and now at 37 billion. and it gives you a sense. >> christie mccarthy, my favorite cfo right now, told you all of this, why didn't they listento her is she making it up? sometimes, carl, the cfo lays out a story, and the cfo has credibility, like christie mccarthy, and you just do what she says, it's not, look, imitation is a form of flattery, but you would have bought it at 120 instead of 170 >> a look at the market, negative breath. 3830, at the big board, united wholesale mortgage, celebrating their listing and we will talk to the ceo in the next hour and at the nasdaq, patry investments

doing the honors we are looking at a company, feet held to the fire, whether or not the cloud, missing the cloud so far is, a signal about the quality of their product >> and tony, we said yesterday, i made, i didn't criticize tony, but tony is really good and tony has had a beat on ibm for a long time as has lisa ellis, and reesa parker, yesterday, and she has been adamant that the cash flow, now adjusted cash flow, they're using, whatever that may mean, adjusted, you can't adjust it, it's cash flow, it is not up to what it should be, and it's been declining and that's a very big worry. i have been saying, let's give them a chance with this spinoff. martin schroeder will be running the spinoff. people think it is slower growing. kind of like an accenture. and it means that redmat come,

red hat comes to the fore. redhat was good. and i believe the numbers can be covered by the two different entities and david, i think ibm is owned by a lot of what i would say, we used to call them widows, mothers, whatever, which was, you know - >> depending on the dividend. >> and we got to get rid of that terminology because that's not right but depending on the dividend, i think it's fine for now. >> it may be but it's not good to see your stock down 9%. can we go back and take a look at ten-year on ibm, or just a 20 year, to get a feel of how things have gone longer term here >> i remember when tom haguen says, why do you hurt me, michael. >> there you go. >> why do you hurt me, david >> i don't mean this to hurt you, jim. >> i'm speaking metaphorically >> understood. i didn't think you would take it so personally but it gives you a sense. >> and warren buffett was in there and realized, it was right and he went to dairy queen and

so at lot of kids switched to apple, one the greatest investments ever i should go to darry queen more of often. of course he owns dairy queen. >> the largest single owner of apple. by far. >> i'm taking my kids to darry queen. let me know you what want me to do one of great lines was financial crisis. >> ibm was tough no mincing words it was a bad quarter a lot of deals didn't close a lot of people are pulling for ibm, including me, because it is like, we want to talk about intel, a national treasure, we need to talk about ibm as a national treasure, and we really want it to work, and i don't want to cheerlead for it i think that buying redhat, and i wish jim whitehurst were on the call quite frankly because i think he is doing a pretty good job, but there is saganany saying they missed the cloud and ibm saying it is one of the largest -- >> that's the 20 year.

that's pain. that's pain. >> what you are, mr. t >> yeah. the forecast calls for - >> he told you he made a good call on ibm, mr. t. he said the forecast calls for pain on ibm. i remember that distinct ry. you were right. >> carl, i am concerned that when you miss quarter after quarter, you've got to get it right soon and the clock is ticking, i believe. arvin christian is terrific, he's got a clear vision, but that, you can't have these kinds of quarters and expect that your company is going to attract institutional investors. it's just not. it's not >> we mentioned goldman initiating a bunch of cloud service, jim, they are buys on microsoft, salesforce, splunk and now. sales on oracle and autodesk, trying to separate the wheat from the chaff. >> yes that was pretty good company that was faint praise.

oracle, tiktok, tiktok, walmart was praised because of its tiktok relationship this morning, in a very big piece, by jeffries but look, i think salesforce has been, well, it's just been biding its time. why? because it's buying slack. a lot of people don't like that. amd by the way biding its time because it is buying xilinx. a lot of people don't like that. nvidia buying its home because it is trying to buy armed holdings because a deal i think has very little likelihood of -- >> you think very little i have great insight there is certainly a good deal of concern that the chinese anti-trust regulator samr, samr, will not allow that deal to happen. >> jenson wong say ts that deal will close, it will close. it will be game set match for everybody if they get that. >> but you don't think it's going to. >> i'm more worried about the bridge regulators who seem to

worry about nvidia being too powerful >> so you're actually more concerned on that side >> yes, i? >> i didn't realize that. >> i didn't realize arm is based in britain and people fear, there is going to be nvidia and there is everybody else and noun with is ever going to catch up to some degree, jenson wong is so brilliant by the way, he likes ferraris. he's got two ferraris. he likes speed but by the way, that is no sleight on fraud versus ferrari, upgraded by jpmorgan on hot new products but i think jenson's got unbelievable, autonomous driving, that's next, ai, machine learning, all of these different cliches that nobody really else has other than nvidia. >> which gets me to climate change crisis, real impact one acquisition corporation. >> how did you get to that >> it's a segue.

i was thinking ford and ev and gm in that moment and when i think of ev, i think of ev go and then i think of the climate change crisis real impact fund, why wouldn't i which announced a deal to merge with ev-go which was 100% on my ls power, they are all rolling in, by the way, existing shareholders, let's give you a quick look at what we're talking about, 2.1 billion $enterprise value, they also have a $400 million pipe, blackrock, new berger, pimco, expected to close in the sivgt of year. but -- in the second quarter of this year. but jim, it's already doubled. you saw what it was up >> i know. but what that basically means you're talking about an enterprise value now of closer to 5 billion let's call it, yes about, $5 billion. so that is over eight times 2025 revenue guidance that's about a 5.6 time multiple on 2026 revenue guidance and i'm told that is in line with sbd chargepoint, which

trades at about 8, a similar multiple. >> it is. >> they're talking about being free cash flow positive in 2026. and obviously, they're going to use this money to continue to expand the network of fast-charging sites around the country. they've already got i think it's 1400 >> don't you think it's amazing, david crane, a classmate at law school. >> former of nrg. >> fired from nrg. and one of the reasons why he got fired is i think he wanted to have a fossil fuel company that was going to be a clean energy company he was too early he was too early now, he would be revered nrg obviously, we don't have a picture of that chart, we might. >> yes, i took a look at it. >> from when he was fired versus what happened after because it was one of the great performers ever and all crane wanted to do is make it to the recharging stations and i had him on repeatedly about charging stations because i thought it was just the way of the future but utilities, david, are slow to embrace, not as slow as the oil companies. >> right. >> the oil companies are still

saying, hey, listen, we have 30 more years, and 2016, you need to see 2016 on that chart, and 2015, 2016 >> that's only one year. >> we can't do that? >> but listen, all of this is based on the idea of ev growth of, they're talking 24% a year cagr compound annual growth rate. so that is 100 times expected between 2019 and 2040. in terms of the market so the market will be 100 times larger in 2040 then it was in 2019 >> that's possible. >> and you're going to need an awful lot of charging stations if those growth numbers are anywhere near correct. >> ev is 3% right now. >> right. >> why can't ev go to 20%? >> countries are going to -- >> fossil fuel. >> it potentiallied could. >> people are buying exxon, schlumberger, because they're taking a classic short term view of what is going on with energy. >> do you know how much money has moved into spacs and then

capital available for all of these companies that are pursuing these opportunities, in terms of the growth of ev? i mean it's been many, many, many billions of dollars. >> i don't know what to do >> which by the way you could argue a positive thing in terms of spacs because the money has gone in there and bringing companies public, in terms of the development stage and giving companies an opportunity as opposed to earlier, when growth companies have stayed private for such a long period of time because they had such access to private capital. >> this is a good discussion, because the merry men, i'm talking about all of the young people, this new young cohort, they love an offering. why do they like a stock offering because they then give the money to the company and they can dream dreams yes. everybody wants to be the next tesla, carl, because tesla's the greatest story ever told >> right well, jim, i mean i know you don't, you don't begrudge anyone for doing a short term trade >> not at all. >> in the energy space

legacy wise. i did notice nomurs did initiate nio with a buy 40% upside calling them the heir-apparent in china's ev world. there are short term views and long term views. >> luxury cars they own the luxury car market in china luxury ev. i know that bmw tried to do luxury ev and it is just not really working >> and nio is competing with tesla. >> nio is a real company. >> and nio has better performance, you can see over one year, you can see it there, than tesla. >> the stock was at one in may. >> one to 58 is not bad. >> how sur index fund doing? >> speaking of chinese company, guys, an indiana to -- an ipo to keep an eye on, a chinese company, one of the big vaping condition, e-vaping, rlx it's about 30 times over-subscribered. >> i was going to slam the heck out of this. but everyone told me, jim, it is hot as a pistol, the vaping

company and i said you know what, i will suspend all judgment. >> we'll see how it opens. it's not yet and it may be a bit. but i did want to mention that because it was a feature this morning among some people i was speaking to, trying to get allocations. >> people don't vape as much anymore, david >> they don't vape as much >> they don't vape >> because of why? >> remember? >> go ahead, carl. >> you did a special. >> remember when that was a big national issue, jim. >> there were days, there was a special. >> i think it's a special. one of the most moving specials we have ever done, carl. and when you saw what happened to children, we haven't seen juul come public for a spac. >> it didn't really work. >> juul. >> what is that, making a spac out of that thing? >> maybe a polar bear. >> signa is worth a lot more than juul. >> i like signature. >> on some of the reopening plays today, you've got members of the japanese olympic committee pushing back on

reports that that's going to get canceled the bond move was delayed to october, the third delay and now carnival extending cancellations to the end of april now. so again, this first half story that we had been maybe hoping for, aspirationally, looking a little dimmer. >> i think that when we hear from these companies, we are going to hear about 2022 second half bookings that are going to blow the doors off of what people expect. i think the bookings are going to be extraordinary. and people will regret selling norwegian cruise right here. which i think is going to have a barn burn ner 2022 >> 2022. >> that's next year. >> that's next year. >> i don't know what you're hearing. >> i'm hearing - >> i'm talking about coming back to the office in september i'm starting to hear after labor day. it has moved yet again. >> well, the south african group coming. >> we got to stay away from -- >> yeah, fauci did yesterday,

say that the process of adjusting the vaccine, i think his words were, not a very onerous process, so we certainly hope he's right about that. >> we do and look, i know people, you know, i've had the first half of moderna, but i think that they're starting to be some pressure to really get things going. and you got to do what the ceo of honeywell did with david tepper, private sector has to get involved, carl it has to. >> all right guys, all sectors red. communications tech trying to come back to the flat line let's get to bob pisani. hey, bob. >> good morning, guys. happy friday important thing for today is remember we said stocks hit new high, the narrative has to be sort of perfect. anything that disrupts the big three narrative idea is going to be a problem with stocks of this height and that's the problem we have today. so take a look you can see the reopening sectors, what are the reopening sectors. it's china which is down today and energy materials. and tech all down you can see defensive groups like staples lagging, holding up

relatively better than the rest of the sector. all of the reopening stuff, carl mentioned, carnival, the travel stock, the oil stock, apache, one of the bellwethers down, reits, like simon property group down, this is the reopening story. so the situation is, remember the big three in terms of narratives that keeps the market holding up all three of them a little tougher today. so on the stimulus, there's a lot more talk that maybe $1 trillion stimulus is more likely than $2 trillion stimulus a lot of discussion on the vaccine rollout and concern of the new strains that the vaccine may not be as effective in some of the strains, we have to determine that, it's not clear but there are some questions, and the effect of that is the rae opening may be a little farther out than anticipated and this is not terribly surprising and we knew about the possibilities but remember, the markets at this height, there is very little room for error earnings generally are doing really, really well. the bank numbers were good estimates are generally rising for the first quarter.

people asked me about ibm. this is a ten-year chart of ibm. ibm hit its height in 2013 it was what? i think 215 back then. that was the height for ibm. since then, generally revenues have been declining. every single year. maybe one year, it was up. earnings have generally been declining. since 2013 the market is reacting very rationally, to a company that used to be a tech bellwether but it is not really a tech bellwether anymore at least in terms of the leadership in earnings growth, in revenue growth, so the market is acting very rationally and of course, like jim, i root for ibm, too, but we just see the earnings and revenue history, that's what you want to look at, and that's what the market is reacting to. i want to talk to you about the retail trader. a couple of months ago we were talking about robin hood and the effects, i have some updated numbers folks. these numbers are astonishing. the volumes went through the roof last year equity trading stock trading volume went through the roof 2019, the average volume was about 7 billion shares a day

and in 2020, the average volume was about 10.9 billion shares. this is all trading in all equities on all the tape 2021 so far, that's not a typo 14.7 billion shares averaging. so we're talking about magnitudes of order greater going up in the last couple of years and even bigger over december 2020 over january 2021. what's doing it? what's moving this i think it's clear a lot of this change is due to the retail trader continuing to be a big force in the market. why do we think that monthly trades at the traders, schwab, e trade, record numbers. the tape that reports the retail trade, the trf, the trade reporting facility, is also at a record, and finally, we are seeing record equity options trading, continuing, and there's been a lot of debate about this, but the bottom line is, retail traders, very interested in getting educated about buying out of the money, call options,

and of course, we all know, carl, this works, until it doesn't work and never mistake an up market for being a genius but we're in an up market right now, so far, and all of those efforts to buy into that is paying off. back to you. >> all right bob. thanks bob pisani we'll take a break here. from the bottom of the screen, you can see the market manufacturing pmi coming in. 59.1 estimated 57 and services 57.5. we were looking for 54.8 on the composite, the employment index, 51.8 is the lowest since july back in a moment

your daily dashboard from fidelity -- a visual snapshot of your investments, key portfolio events, all in one place. because when it's decision time, you need decision tech. only from fidelity.

for skin that never holds you back don't settle for silver #1 for diabetic dry skin* #1 for psoriasis symptom relief* and #1 for eczema symptom relief* gold bond champion your skin

a federal judge ruling she will not order the aws unit to rein reinstate parler she wrote inflammatory rhetoric can more swiftly and easily than many of us would have hoped turn a lawful protest into a violent insurrection the court rejects any suggestion that the public interest favors requiring aws to host the

incendiary speech. the record shows some of parler's users have engaged in that amazon's argument was this was not necessarily a new thing. it was the result of a series of warnings and apparent inability or unwillingness to reign in the content. >> i don't know why there isn't more of a uproar against the people doing the insurrection kind of cheerleading or suggesting how to do it. it's not the fault of the carrier, for hech's sake if you are doing something genocidal or racist or taking over a country or attempting to defeat the constitution, those are the guys who are at fault. david, i don't want free speech for racism, free speech for insurrection that's not what the country is built on. >> no. and the amazon decision was an interesting one, as, of course, twitter's decision to not just suspend former president trump, but to ban him from the

platform interesting to note, carl, i'm sure, as you see, the ayatollah has now been suspended wondered how you could spinsd the former president and not the ayatollah. >> yeah. a lot of critics argue that twitter's suspension policy is >> yeah. >> not crystal clear. >> we will be back in a moment

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 for a changing world. ♪ch-ch-changes♪ does your vitamin c last twenty-four hours? only nature's bounty does. new immune twenty-four hour plus has longer lasting vitamin c. plus, herbal and other immune superstars. only from nature's bounty. your daily dashboard from fidelity -- a visual snapshot of your investments, key portfolio events, all in one place. because when it's decision time, you need decision tech. only from fidelity.

the week led by ford 18%. ford is above $11 for the first time since the summer of 2018. jpm ups to overweight with a wee ckn o14 'rba ia moment

(judith) at fisher investments, we do things differently and other money managers don't understand why. (money manager) because our way works great for us! (judith) but not for your clients. that's why we're a fiduciary, obligated to put clients first. (money manager) so, what do you provide? cookie cutter portfolios? (judith) nope, we tailor portfolios to our client's needs. (money manager) but you do sell investments that earn you high commissions, right? (judith) we don't have those. (money manager) so what's in it for you? (judith) our fees are structured so we do better when our clients do better. at fisher investments we're clearly different. your grooming business is booming. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base.

claim your seventy-five-dollar credit when you post your first job at indeed.com/groomer

trading." >> who said the mall is dead lb doing well, gap okay. american eagle outfitters a conference yesterday i bet your daughter loves aerie, the most exciting concept in retail look at that chart that stock is going higher yes. >> i'll ask her. >> good, carl. >> jim, how about tonight? >> okay. first horizon, i love the

regions. and then ran spac, a lot of us feel there is too much waste in packaging, especially from amazon. >> finally, who is going to the super bowl >> oh, man, it's going to be the -- still going to be the chiefs. i think he plays, mahomes plays, and it's going to be the packers. that's bob iger's team, by the way. remember bob >> of course. >> once you leave, the ceo, people wforget. >> he is out there right now hi, bob. >> see you at six. enjoy the weekend. "mad money" 6:00 p.m. eastern time. welcome to "squawk on the street." i'm carl quintanilla with david faber and morgan brennan stocks, gains for the week, still intact off the early session lows, intel and ibm about 95 points off of the dow at the open, getting existing home sales as well right to diana. >> carl, existing home sales in december rose slightly, 0.7%

month to month to a seasonally adjusted annualized rate to 6.7 million units. the street was looking for a drop and november's number was revised slightly higher. sales up 22.2% year over year according to the national association of realtors. we get the full year 2020 numbers. what a year for housing after it plummeted, sales, in the spring and into the summer. they have soared right back. we ended the year with 5.64 million units sold. that is the highest sales pace since 2006, or before the great recession. we could have seen even higher sales were inventory not so bad. in december, inventory just 1.07 million units for sale. that is a 1.9-month supply down 23% year over year and the lowest number of homes for sale and lowest supply on record. that, of course, keeps the fire under prices the median existing home price in december $309800, up 12.9% year over year, the highest

december price reading on record this median was skewed slightly because the homes on the higher end of the market are selling. so homes priced below $100,000 were down 15%, whereas those priced over $1 million up over 90%. now, sales are just -- homes are flying off the shelves the days on market was just 21 usually we see a slowdown in december we are not seeing that at all. and what's coming up in this year, well, foot traffic, which the realtors measure by the lock box ons the doors, up 24% year over year right now. we should expect to see strostronger sales. they could see 8 million sales if we just had more homes on the markets. but we don't morgan. >> wow i mean, these numbers are incredible it speaks to those housing start numbers we saw yesterday as well well:the need for single-family homes. in d.c. this hour, as well the senate finance committee set

to vote on janet yellen's nomination for treasury secretary. ylan mui has the latest. >> morgan, we are likely to hear from senators. they are going to give a few brief remarks before the vote begins we are expecting her nomination to clear the committee without any problems now, there are 26 senators who sit on the senate finance committee, and technically republicans do hold the majority still, but there is widespread agreement from both sides of the aisle that she is more than qualified for this position. the first fed chair, treasury secretary, the first woman to serve as treasury secretary. the main points of contention that republicans brought up during the confirmation hearing is whether she might support raising taxes on individuals or businesses while the pandemic is still going on the overall cost of president biden's $1.9 trillion covid-19 relief package and support for raising the minimum wage to $15 an hour. it is unlikely those policy disagreements would derail her

nominee. once her nnomination clears committee, we are expecting, there is a potential to get a final vote on the senate floor sometime later today but, guys, we will let you know if and when we get firm timing on that. back to you. >> thank you for that. let's check in with steve liesman this morning we can talk about yellen's confirmation or the things she hit, not just in her testimony, but in the follow-up letter. it was the greatest hits as far as our audience is concerned >> yeah, in it comes to ai think she will be sf a levning force when it comes to some of the more left-leaning parts of the democratic party. she is going to be scarily on the side of where biden wants to take things. eventually, i think they want to boost taxes or eliminate some of the trump tax cuts for those

earning $400,000 or more but the sense i get is that's not going to happen right now. i think right now, carl, the administration is focused squarely on what they can do to bring the pandemic under control and provide what relief they can to the economy you saw that this morning in some of the executive orders and then you will see it in the push for this $1.9 trillion of relief and stimulus that biden wants to do. >> steve, let's not forget, we had $900 billion in aid that was just earmarked a few weeks ago i don't know what a realistic assumption is. and jim cramer talks about how much of that money is actually going to end up in the stock market or in sports betting. it's hard to know exactly, isn't it, how -- what the fm will be, how much is truly needed and how much is not going to actually be spent the way that perhaps had been anticipated >> a lot of that is true, david. but we have a pretty good idea of the marginal propensity to

consume on this money. it's about half. especially when you send checks to people who are already working and have not lost their job, that number goes down and it goes up when you send it to people who don't i think there are legitimate questions about the size of the bill i think aid to state and local governments makes sense. especially aid to the unemployment makes sense this idea of the flat check going out, that is someplace i think there are legitimate arguments on both sides. >> we have a restaurant guest on later in the hour who i think can speak to this idea of a stimulus bump and his restaurants, too, which gets to another question around another topic that's wrapped up into the stimulus proposal that i know you have been doing a deep dive into, this minimum wage hike, this federal minimum wage hike that would double the minimum wage just in terms of the economics around that, i think traditionally it's been seen as something that would not be stimulative.

what does the data tell us >> check with the producers and see if they have a half an hour or 45 minutes to respond i know they can't. i will do the best i can there is an upside in terms of more people will make more money. there will be more spending. that is good there is a side of it that also looks at small businesses who can't afford to bring on somebody at $15 an hour. that could mean jobs are lost. it could mean the low skilled teenagers don't get jobs it used to be, morgan, that economists were sure that raising the minimum wage was terrible then there were a series of studies that showed it wasn't bad, there wasn't really much employment fall-off if it was raised gradually and not too severely and there have been a lot of studies on both sides of this thing. it's a definite trade-off where the question has to be asked, where do most workers end up better off i will close with one idea out there, which is increasingly, employees do not have a choice where they work.

they cannot ash tries their labor and go across the trstreet to get a better way, especially in rural areas that's a reason for increasing the minimum wage 29 states have already done it pretty good employment numbers during the time that happened. >> steve, thank you. steve liesman. let's turn to some of the big earnings movers of the day with that we will visit intel and ibm. you see down sharply after reporting results. to be fair, intel had moved up, john, because they released earnings before the end of the day yesterday. but giving much of that back meanwhile, ibm now down to $100 billion market value. i saw an interesting stat the last 25 years, they thought back $125 billion worth of their stock. >> this is a bad quarter from ibm. it's particularly bad, i think, for a couple of reasons. if you look at what's happened to so many companies that are involved in cloud during the pandemic, there has been some benefit from that migration from

that push into cloud and remote work so while you see ibm taking the downside in those older more legacy businesses from the lack of hardware sales into businesses, things like that, you would have hoped to see more upside from that push to cloud as you have seen with the competitors. the fact that you didn't see that as much, you did see good growth at red hat close to 20%, i think 17%. but if you take that out, you really didn't see that read through. and so, to me, what that suggests is, for, you know, still relatively new ceo, he has been in the seat less than a year, this new spin-out of the services business, you know, that's not going to be enough. not the entire services business, but managed infrastructure services. and so the question becomes, is this more longer-term of an apple type reorganization story?

i don't mean ibm is going to be the next apple, but steve jobs radically simplified apple's business, cutting back even on products that had big revenues and significant profits because he was saying this is not the core, the foundation of what this company needs to build on moving forward or is it more of an hp story, where hp was number one in pcs and servers, didn't quite catch the wave as the world shifted. you have seen them gradually over decades spinning off various businesses and those businesses usually are middle players in the various industries they play in, david yeah, he took hp apart completely at this point that has not been done with ibm. janet yellen has been approved as the next treasury secretary tell me about intel as well. i mean, clearly, a beneficiary of the enormous surge in pc demand and, therefore, the chips that go into pc.

pat gelsinger joining the call last night. >> it was a different story in intel. on paper, it was a good quarter because, as you mentioned, the pc business continues to be strong the reason why you see the stock giving up all of the gains that it had before the close when that release came out yesterday afternoon is that pat gelsinger seemed to say there is not going to be a big outsourcing of manufacturing. he said he took a look at the seven nanometer process, he expects that to 2023 substantially, you know, all their products will have been built internally if you are a long-term type investor, this is probably good-ish news because it says that this veteran of intel, a guy chief technology officer, grew up in the company, was there 30 years, took a look at where the company is and says the core idea of chip design and manufacturing that made this company great, that's still intact even though there are problems with it if you are a trader and you were

hoping for shorter term get rid of that manufacturing issue return to you a sort of process technology, competitiveness sooner, you are disappointed that disappointment ithink is what is reflected in the chart this morning. >> to pick up on that in-house chip manufacturing threat a little bit more, news this morning, reports that samsung may spend more than $10 billion to build a plant in austin texas. taiwan semi looking to build a facility in arizona, as well so much of that manufacturing is outsourced by u.s. semiconductor companies and so much of it takes place in asia. i guess in light of those comments last night, how does it speak to this brewing debate or, i guess, possible push to see more of that manufacturing in general happen on u.s. soil? >> it reflects that, morgan, in the sense that if you are a company based outside the united states, as both samsung in south korea and tsmc in taiwan are,

you want to be close to u.s. companies in this time, it certainly helps to have u.s. manufacturing. intel has a lot of u.s. manufacturing already and it is a u.s.-based company it makes technology for the military on down to the consumer if you are embracing this idea not just of u.s. manufacturing, but of security of technology products in the u.s., you are sort of rooting for intel. i think the question is, is pat gelsinger going to be able to lay out a strategy and roadmap that satisfies investors and gets the u.s. government and others to come along. >> yeah. it's always great to get your thoughts on all of this. all things tech. we see ibm and intel drag the dow lower today. see you next hour. as david just mentioned, the senate finance committee just approved janet yellen's nomination for treasury secretary by unanimous vote sending it to full senate for a vote likely later today. coming up though, in the meantime, it is the largest spac

deal to date we will speak with the ceo of united wholesale mortgage, beginning it trade this morning on the new york stock exchange we are back in two dot awhe.n'gonyer a visual snapshot of your investments, key portfolio events, all in one place. because when it's decision time, you need decision tech. only from fidelity. incomparable design makes it beautiful. state of the art technology makes it brilliant. the visionary lexus nx, lease the 2021 nx 300 for $359 a month for 36 months. experience amazing at your lexus dealer. your daily dashboard from fidelity -- a visual snapshot of your investments, key portfolio events, all in one place.

because when it's decision time, you need decision tech. only from fidelity. want to save hundreds on your wireless bill? you need decision tech. with xfinity mobile you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g?

you can do that too. all on the most reliable network. sure thing! and with fast nationwide 5g included at no extra cost. we've got you covered. so join the carrier rated #1 in customer satisfaction. and get a new samsung galaxy starting at $17 a month. learn more at xfinitymobile.com or visit your local xfinity store today. getting head lanes from leader schumer about the timing of impeachment per peloton let's get to ylan mui. >> hi, carl. senate majority leader now chuck schumer said the house will send the article of impeachment for

incitement of insurrection against president trump to the senate on monday now, that is a much faster timeline than republicans had been calling for mitch mcconnell had urged democrats to wait until mid-february to begin the trial to allow both sides more time to prepare. however, schumer said on the floor that republicans were only trying to delay the inevitable, and he said that president trump would have a full trial and a fair trial, but it would begin much sooner than republicans had hoped for. so, again, carl, senate majority leader chuck schumer saying the house will send the article of impeachment against president trump to the senate on monday. back to you. >> thank you. united wholesale mortgage closing the biggest spac deal to date leslie picker joins us with two guests very much involved this that deal. leslie. >> that's right. we've got the manager of the spac of divorce group, chairman and ceo over there as well as mat ishbia, united wholesale mortgage ceo and president

thank you both for joining us today. mat, this transaction gives you about $1 billion to deploy through both the spac and its corresponding pipe how do you plan to use that money? >> we are excited. spending a lot of that money and focus on technology. we will continue to invest in technology we have big releases this year and expanding the notoriety of the brokers channel, educating the consumers. we are going to spend a lot of money on those two things. >> alek, in the proxy that you filed last month, it said that you looked at about 40 other companies, signed ndas with about 18 of those and came what close to acquiring two others, one in the sporting retail space and another in the medical device space you decided on united wholesale mortgage, which retains the title, as we mentioned, of the largest spac to date some people will look at that as a validation of a spac process others will look at that and they will say, you know, this makes me a little bit nervous

about what's going on with spacs right now. what can you tell them about the due diligence process you bent through in order to sign this deal >> sure. we have been doing this for a long time, been doing this over 40 years so we do a really good job making sure that our opportunity, in this case we have mat as an amazing leader who has been in business for a long time, built an amazing company, has a great track record so we have the luxury of looking at a lot of opportunities. in this case, the best opportunity by far again, we do due diligence of all of the stuff that we buy. >> i wonder as somebody who as early as you point out in doing spacs and are up to number seven or eight at this point, when you see, i don't know, ten spacs priced every day virtually this week, it seems like, what are your thoughts on the product itself and how you differentiate yourself, whether or not there

is kind of a bubble here >> yes look, it's all a bit of an art, a bit of a science and our job is to make sure we price this correctly to make sure that our investors are winning. we make here that the sellers are winning. we are all aligned in our situation, a lot of skin in the game to make sure that we are aligned with our investments as well. it's a bit of an art, a bit of a science. it's a playbook that we have built the last years that we have done it. >> mat, back to the business itself, valuing it around 9.5 times your estimated 2021 adjusted net income. you are a large business you have been around for 35 years. in the press release you say that you provide for proprietary technology that enables your clients to process mortgage applications at faster speeds and provide lower rates than competitors. what is that proprietary

technology that enables that pastor faster process and rates >> we actual i ar technology company that creates a faster, easier process and that comes through in lower interest rates. the interest rates we offer consumers through our mortgage broker partners it's lower than average across the country because of our technology, our efficiencies and we will continue to add to that. we always talk about the fastest easiest way, cheapest way to get a mortgage is through a mortgage broker we will help those mortgage broker offer great deals for consumers and help them get -- >> what will be an example i what would be an example of how you make the process faster? >> so all the docs are e signed, click of a button and we can do it with our electronic technology internally. nobody wants a mortgage. nobody wants a mortgage. they want a house. we make it so simple they can focus on the house. we do the mortgage using

technology that we built internally, proprietary stuff. the consumer says, wow, is that all i have to do i have to go back to this mortgage broker again. >> that speed, of course, mat, is important so long as people want mortgages, which right now they absolutely do there is a ton of refinancing going on the housing market is absolutely booming. the number one risk factor in your filing is the fact that your business is very, very dependent on the health of the u.s. residential mortgage market what are you seeing on the ground right now and do you think that we are near our peak? >> yeah. absolutely obviously, when rates are lower, everyone in the mortgage business does well the difference with our company is we won in the purchase market as well. we win in all cycles we are not 95% refinance business where a lot of our competitors may be we are focused with purchase and helping the broken channels grow if the market slows down, that's okay we will gain share our broker channel will grow

you go to find a mortgage broker.com to o grow our pie will grow at uwm >>stay an investor at uwm? with the deal closing today, you have a bit more flexibility.c, o stay an investor at uwm? with the deal closing today, you have a bit more flexibility. how long do you plan on holding your stock >> our vision is always long term i believe in mat and his company, what he is doing. so we're here for a long time. everything we do is about long-term vision we are here to stay. >> alec, it's morgan here. i am curious with the biden administration in place now as of this week what your expectation is for regulation around spacs there is a lot of the new s.e.c. chair, gary gensler, could take a closer look. >> i don't really pay attention to a lot of that all i can tell you is the way we do it. we do it correctly we do it with a lot of due

diligence. we are very careful and how -- so i am not sure what they are going to do. >> finally, alec, how many spacs do you have right now that you sponsor that haven't done a deal >> howou have out there right now that have priced but you haven't announced the transaction yet? >> we have three open spacs now. >> so, you know, are you looking at the broad range of things i know this is an established business you are buying at a multiple that has -- one that we are all accustomed to seeing, though don't see that often, or are you looking for high flyers? are you going all over the map or sticking to this kind of aparea >> w >>. >> we are looking for the venture space and divisional companies like uwm so we are mixing it pretty good. again we are very, very -- we are looking at these companies and making sure it makes a good public company

>> and, matt, lastly, you have four classes of stock, third of your board carries the same last name as you, including you, your dad, and brother, and your family owns nearly 80% of the voting power now that the transaction is complete. so, from a, you know, textbook corporate governance structure, this isn't necessarily an "a" plus what do you say to investors who are currently invested or thinking about investing in your company that you will do what's best by them >> well, as you just said, obviously, i am the largest shareholder. i am on the same team as them. first we are offering a dividend right away we are making a lot of money we are not a flyer company we made $1.4 billion in the first quarter. and so we have a lot of money we are making we will share it with the shareholders second off, investors that we spoke to were excite the i am putting fuel on the fire of

the company's growth i am 41 years old, i am excited to continue to grow and they wanted my lincoln peadership an leadership team to continue. also give us continues to continue to grow it's a win-win for shareholders, for our company and our clients. >> all right mat, alec, thank you so much for joining us today this is one that we will continue watching as it's the biggest spac transaction to date, trading now under the united wholesale mortgage name thank you both for joining us. back to "squawk on the street. >> thank you all right. take a look at the dow gainers for the week so far lls. morgan stanley named a top recovery pick on tuesday recovery pick on tuesday today goldman again. how? they have a better finance system than we do. i feel like they might have a better finance system 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 for a changing world. ♪ch-ch-changes♪ sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

it is time for our "etf spotlight. taking a look at the transports. ticker iyt under some pressure this morning up almost 15% from a year ago. one thing moving to the

downside, csx. despite reporting an earnings beat, results for the rail operator helped by 4% increase in freight volume as the economy continued to rebound we have seen that rebound in rail traffic taking root look at kansas city southern, also out with earnings this morning. those earnings missed, but strong guidance sending those shares higher. it's actually the only dow transport in the green this morning. we'll be right back. stay with us folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer to help make the world a smarter place does this come in blue? become an agent of innovation with invesco qqq

what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley.

♪ good morning, everybody, i'm sue herera here is your cnbc covid update the u.s. reported almost 4,000 covid deaths yesterday, the fourth largest daily toll. that's according to the johns hopkins count. all of the ten days with the most recorded deaths have all occurred this month. new cases, however, remain below

200,000 for the fifth straight day, and at 120,000 hospitalizations are coming off the mid-january high of about 132,000. in the united kingdom, new cases also appear to be decreasing slightly or leveling off, but they remain high enough to put an enormous strain on the national health service and officials continue to urge people to stay at home the cdc says the second covid vaccine shot should be administered 21 days after the first shot for the pfizer vaccine, and 28 days later for the moderna version. but it can be done as much as six weeks later if doses are not available. and walmart said they will be expanding its vaccine operations to a handful of stores in seven states, up from two stores hopefully that will help those in rural areas you are up to date david, back to you. >> thank you, sue. amazon is wrapping up its own efforts to help deliver vaccines our bertha coombs has that story

for us. >> david, right now amazon is just going to be providing space for vaccinations this sunday to be administered with local health system virginia mason that pop-up clinic for the public will be held at the company's meeting center near its iconic dome in seattle virginia mason clinicianing will vaccinate 2,000 people who pre-register this is just a one-day effort, but amazon and seattle businesses like microsoft and starbucks are working with governor jay inslee on a public/private partnership, which meets daily to come up with strategies to boost overall vaccinations and eventually to get their own vaccine. their own employees vaccinated jay carney saying they'd like to start job site vaccinations soon. >> we are also, i want to say, ready to help administer vaccinations to our essential workers in washington state. we have 20,000 of them that help we can provided a energy the vaccinations will

free up resources tfor other efforts. >> tamazon and other employers with essential workers run vaccine clinics with third-party health providers amazon already works with employers service consent ra for on-site testing and monitoring in the state washington started phase 1b 1 vaccinations for those over 65 phase two will depend on vaccine supply the governor wants to get to the point where they are vaccinated 45,000 people a day, but at the moment state officials say they are only getting about 97,000 doses a week, and they don't know, carl, from week to week just how many doses they are getting. so they are really looking for things to get ramped up on the global level with the federal government and certainly having jay carney in the mix, who worked with the obama/biden administration, for them, rather, doesn't hurt.

>> if you can't measure it, you can't manage it. we will see if we can get some of these dashboards up and running. bertha coombs with a great look at where we are in vaccine logistic speaking of which, the pandemic slowing down the freight and cargo industry creating a shipping backlog joining us is ryan peterson, founder and ceo at flex port thanks for the time. >> yeah, great to be here. thanks for having me on. >> we have seen an echo of concerns even in economies like china where the flow of goods now is starting to be interrupted because of the number of infections with freight workers and port workers. how much of that is happening here >> well, it is starting to come here flex port is a data platform for global trade, so we enable shipping, make it easier for companies to ship. we shipped 200,000 containers the last year. we have gquite a bit of visibility into ports, truckers,

et cetera. we are seeing more shipping than ever, imports up 30%, and it's very hard. there is not enough space in all the ships. so the first disruption is just all of the demand and unable to satisfy it in fact, 37% of containers are getting rolled right now getting rolled is like when you fly on an airplane, you get bumped and pushed to the next flight 37% is extraordinary usually 8% is the industry average. really record highs. that's not necessarily due to pandemic other than just more demand than the supply can satisfy. that was the situation coming into this week record high prices, $9,000 to ship a container in the spot market from china to europe. usually, that price is much lower, more like $3,000. so just a huge increase in price. not good for the brands out there struggling to get merchandise into the hands of their customers. that was the situation coming into this week

what's now happened, two days ago one of our ocean carrier partners let us know that, first of all, ilwu, the longshoreman union that runs the ports on the west coast, they are reported 700 employees have caught covid in the port. and so we are going to see it's going to create more back logs >> you walk in with obviously tight capacity we have got the pandemic i know you even looked at weather conditions aren't especially ideal this time of year is the industry gaming out improvement from here, or some further degradation, at least in the coming months? >> i this it depends where you sit. it's either really good or really bad if you are an asset owner, it's booming. ships are full, your trucks are full not everything is great. your employees are working harder than ever they are very brave putting their lives at risk facing this pandemic but business is very good. customers might be a little frustrated with you. if you are buying freight, you know, prices are high, you can't

eastbound get space, it's months if you book a container before you can get it on a ship when it does, you have a 37% chance of it getting rolled. so depends where you sit in the stack whether it's good or bad. >> yeah, ryan, it's morgan i think you touched on this with that months comment just now, but i am curious how long you expect this situation, this perfect storm to expand out into 2021, especially since we are only just starting to see the beginnings of an economic rebound, and that's really expected to become a much bigger, more officfervent things the year progresses. >> i would be hesitant to make predictions about what consumers are going to do. as long as demand is where it is and imports are booming, it takes years to bring assets online you are not -- it's not like you can just get 30% more ships out there because people are buying more stuff so that's going to stay there for a long time. prices are high. the way things are lacking with infections growing and now really hitting the ports really

hard, congestion is going to increase and it be harder for everybody in the chain. >> the labor piece of this, serve hundred cases of covid they are essential workers when will they be able to start to get vaccines? >> what we are told is that they are very, very high on the list. governor newsom let folks know in the shipping industry, hey, you guys are near the top of the list but they don't have vaccines available. at least until the end of february >> i am trying to understand, ryan, have we seen the full impact yet of what covid has meant in the ports like in oakland and l.a., or is there still a lot more to come in your opinion? >> i think it's just getting started in terms of the virus itself affecting the ports almost 10% of the workers have it right now the way this thing spreads, it's going to be even more than that. you already had congestion that wasn't necessarily due to the virus directly that was second order effects of people buying more stuff you got 27 ships according to

our satellite data this morning waiting offshore at l.a. it takes in normal times a couple weeks ago eight hours to unload the ship. if you are operating with way less workers because of covid-19, that is going to get even worse >> your analogy on getting rolled coming into laguardia, let's say, is something the audience can truly relate to, ryan great information. very granular. please come back. >> love to come back anytime. >> wow, these numbers. keep an eye on freight we head to break, paypal at all-time highs and poised for a third straight month of gains. raising the price target to $282 a share. take a look at that. it's about 1.5% this morning eris more "squawk on the street" on the other side of this break stay with us

and in an emergency, they need a network that puts them first. that connects them to technology, to each other, and to other agencies. that's why at&t built firstnet with and for first responders the emergency response network authorized by congress. firstnet. because putting them first is our job.

one chart reveals why major correction fears may be overblown according to a top economic forecaster.

find outor me on tradingnation.cnbc.com more "squawk on the street" coming up.

welcome back to "squawk on the street." i'm seema mody nearly every sector is lower today, including consumer discretionary, in the cruise lines, the hope was they would return in february or march. with no guidance from the cdc, they are forced to yet again suspend sailings through april 30th that would be in total 14 months of in cruises from u.s. ports. every month as truest outlines, carnival, royal, norweigian are burning two to $600 million per month. significant costs with maintaining these ships when they are not in use. many have to be anchored offshore, put in dry dock, which then delays their return to service all while keeping their crew close by. in turn, adding significant costs with lodging for their crew members

now, the cruise lines are getting in line to set up a meeting with the new cdc director to put together a path forward and get a concrete timeline in place so they don't have to continue to suspend sailings carl, certainly an industry to continue to work watch. >> what a tough road thanks for that. when we come back, the ceo of tgi friday will join us the need for more stimulus, pricing, and a lot more. don't go away.

stay restless with the icon that does the same. the rx crafted by lexus.

get 0.9% financing on the 2021 rx 350. experience amazing at your lexus dealer.

confirmation friday. not only did janet yellen's get out of senate finance unanimously, a majority of the u.s. senate backs confirmation of biden nominee lloyd austin to be secretary of defense. voting continues there, and we will see, david, whether or not we get a full floor vote on yellen later this afternoon. >> as you noted, coming out of committee with everybody in favor. the restaurant industry is eager to get back to normal, and now

operators are evaluating approaches to getting their workers vaccinated kate rogers has that for us. kate >> hey, david, good morning. in one of the industry's hardest hit by covid-19 operators both large and small are now navigating the vaccine rollout food service workers are recommended by the cdc to receive vaccines in tier 1c the national restaurant association pushed to have industry workers vaccinated in this group calling them essential to food security starbucks this week announced it was teaming up with washington state to expedite the rollout there dedicating 11 workers in labor and deployment, operations and research and development to help its home state reach a goal of 45,000 vaccinations a day coo brewer told us last week the coffee giant does not yet have a public stance on vaccines for workers or guests. now chipotle said it won't be mandating vaccines but did tell cnbc it would strongly encourage

employees by providing resources and access and would strongly encourage the vaccine but it doesn't anticipate mandating it right now. shake shack, mcdonald's, restaurant brands international and papa john's do not yet have public standses. domino's says it is internally evaluating but it will share it with its franchiseees. many of the concepts are franchised and it's unlikely we'll see them dole out more than suggestions to their franchisees. the franchise or community at-large has steered away giving too much directive to franchises as they can be deemed employers responsible for what occurs at their franchise locations according to franchise attorneys. morgan, over to you. >> kate rogers, thank you. that's a great way to start with our next guest for more on reopening, vaccinating employees, stimulus, also the minimum wage, joined by tgi fridays ceo ray blanchette >> thanks for having me. >> let's just start where kate left off and that is the

discussion that we're seeing being had by many chains around the country around -- and companies around the country on vaccines and whether companies will mandate them and/or financially incentivize for their workers. >> i can tell you we're not going to mandate any vaccinations that seems to be sort of a personal choice. we probably are going to offer up some sort of financial incentive for our teams. i think that's a good idea we had this conversation literally yesterday, so we're probably going to offer some sort of an incentive for our folks once they become available. >> in the meantime in terms of a vaccine rollout and what that means for foot traffic in your restaurants right now, i guess just give us a sense of what you are seeing as we kick off 2021 there's been a lot of talk that restaurants such as yours are seeing a little bit of a bump from the stimulus checks that have been going out. >> yeah, well, we've certainly

seen a bump from the stimulus checks that's always helpful. it gets to people in need and it tends to come right back into the economy very quickly what we're seeing is really a mixed bag of results we have places where we have absolutely no dining indoors whatsoever those are still very hard hit. and then we have places where it's essentially wide open what's interesting is we don't see a material difference in infection rates. we went into this thing day one saying if we protect our team members, then we're protecting our guests because our team members are in the building eight, ten hours a day if restaurants were superspreaders then we would see our team members overindexed relative to the rest of the population, and we just aren't seeing that. we're anxious to get our restaurants back open safely for our guests and get our team members back to work as soon as possible

>> yes, and in terms of contact tracing speaks to the point you made to shift gears a little bit, we have this next wave of stimulus that's been proposed by president biden. folded in there is that $15 federal minimum wage, a doubling of the federal minimum wage, but also folded in there alongside that is the elimination of the tipped wage. i wonder if you've run those numbers and what that would mean for your staff, for your restaurants if we were to see the minimum wage for them jump as extremely as it would given where tipped wages are currently. >> yeah, the jump in the tip wage is really where we have an issue. i think as the second largest private employer in the country, we would welcome the opportunity to partner with the administration and have a robust conversation around minimum wage what i don't want to see is inequity in my business. if the cooks are making $15, $18

now and then suddenly the waitresses are now making $40 an hour, that doesn't make any sense to me. the minimum wage is the minimum wage you hear soundbites, i think it's dangerous to talk about minimum wage, a big issue like this, in soundbites because they're intentionally misleading to say i think a waitress deserves to make more than $2.10 an hour is incendiary. no waitress in america makes $2.10 an hour. every single person that works in america is guaranteed the federal minimum wage if tips don't make up the difference, the company does so for us where we really have an issue is around tip credit. we're already significantly above the minimum -- the $15 minimum for most of our employees. that's not a real big deal in the front of the house where we spend a lot of hours, we would clearly be cutting back hours if something that dramatic

happened and we'd have to materially raise prices which doesn't feel like that would be right so to do that to the restaurant industry after what we've been through would be disastrous. >> ray, speaking of raising prices, we have corn prices at the highest since 2013, soybeans highest since 2014 i mean, if you do have to raise prices, is it about ag-flation or wages >> right now our commodity outlook is fairly stable our biggest risk is actually in the pork market. so that hasn't cascaded through to us, but we know it's inevitable that it certainly will we know that we don't have a lot of pricing power we serve middle america. we like serving middle america we want to continue to be able to do that we think we provide a respite, an opportunity to celebrate and just blow off some steam in a time when people could really

use it so hopefully we're able to get to the table and have this dialogue with the new administration that we're very excited to work with >> unfortunately, we're up against the end of the show here, but please do come back and update us. we didn't even get to delivery partnerships or the other things afoot. ray blanchette, thanks for being with us. >> my pleasure anytime. after the break a closer look at intel and ibm, the two worst performing dow components this morning shaving about a third of the losses that the dow rrtlha ba ia moment i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests.

and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ 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 for a changing world. ♪ch-ch-changes♪

good morning 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ ♪