it and red, it wasn't the chiefs, right? subliminal messages? the goat of all time maybe versus the best current player it should be a fun game. >> it's not always the case with the super bowl >> a great game. >> have a good weekend >> yup >> and we will welcome you back here on monday morning right now, it's time for "squawk on the street. good friday morning. welcome to "squawk on the street." i'm carl quintanilla, with jim cramer and david faber stocks have five straight gains, something we have not done since august the senate clears the way for stimulus the jobs number has personality at 49 k but the unemployment rate is the lowest since march our road map begins with the return of john, we will get the first reaction from the white house, later on this hour. >> plus the retail trader

rebellion, perhaps not so, new data suggests that institutional investors, we talked about this, were key drivers, but the recent games about the volatility and how about that competition, in the electric vehicle industry, and apple electric car on the horizon we will get the outlook for the industry, with the ceo of lucid motors carl. >> all right, guys, let's kick this off, jim. it's been said that the market is relying on three pillars. stimulus vaccine and earnings and with the vix this morning below 22, it does appear that all three pots are boiling >> yes, look, carl, i hate to say that it's, this really is a moment, where we had a lot of people get negative and you recall on monday, we had chief strategists say look, what happened last week is really a top. it clearly wasn't a top. we are focused front and center with some great numbers. the backdrop with the unemployment number makes it so we don't have to worry about the

fed chief powell and what he says and obviously secretary yellen trying to hammer out a stimulus deal and i'm gratified by the astrazeneca deal with the new strain and so many people are saying new strains can't be stopped. i would like to put that, just, just put it in a box let's just say that a lot of the drug companies are working very hard to make it so that we are able to have a normal life, within three, four, five months. david, will it not be something when we all get together and we're vaccinated and we say to yourself, i'm feeling pretty good, what should i do now >> yeah, hopefully there will be plenty of things to choose from. i think the one thing a lot of us will do is choose to be together which would be nice. and congregate and eat. and celebrate. so we all look forward to that >> hey, jim, by the way, do you have an estimate i know you will be getting round two pretty soon but when do you think, in the light of the jobs number, and the overall conversation, of course, they've been having for the last hour on

"squawk box" on the economy, when is your expectation that we will have widespread vaccinations and therefore that ability to start to really resume >> sure, after the johnson & johnson last night, i think we're talking about cinco de mayo why do i say that? that's the day i intend to open the bar san miguel again, and i think there's going to be this moment, and we seem to be able to have, finally getting the vaccine in places where people are able to access it. and i think when j&j, even though it wasn't perk, it says no death, no hospitalization, we're getting to the point where people say it is going to happen, it's inevitable, let me go book a cruise and let me take a trip in december, i want to be somewhere else will it be roaring '20s. it could be like the end of the pandemic, the spanish flu, so i think we're talking four months, david, i don't think we're talking six months anymore, there's just too much in the pipeline, j&j up three ahead of this, it is a little odd, since i think this is one of the more

predictable things that could happen but this government we have now seems it is not fighting the tape, the tape of the disease and that's very important. let's everybody remember, you still got to wear masks, i'm worried about super spreader events carl, you know when people get together and their voices are loud and they are even outside, you're going to have another level again of infection, so let's not get depressed, it's going to happen, but the calvary is here, the calvary is here, and some of it is j&j, some of it is pfizer, some of it is morna, some of it is astrazeneca, i will be talking to sanoni, they did not deliver but let's give the russians credit, sputnik v is a big winner. >> and big reap uses in russia. >> and if you get the emergency use for j&j at the beginning of march, really by the end of march is when availability starts to explode and then

you're looking at a situation, where as you said, by may, june, you're looking at most adults having gotten it, and that leads to you what treasuries are doing this morning, ten year now 1.18. 30-year 1.98. >> we've been talking about this increasingly as the spread is at a six-year high. >> well, look, i know the backstops have been strong, and one of those to buy in this moment, we're still seeing incredible housing numbers and exodus from the inner cities, we're seeing so much economic activity and we were talking about gigantic growth in orders, gigantic, we will have ford on later, geez, these numbers are good so i see a lot that's good but what's bad, obviously, people are still getting sick. and people are still don't have enough wipes, i was talking to clorox last night. so i think it is a cross moment where a lot of people, carl, who believe that you still want to own some companies that do well, when you're hunkering down,

nesting is the term, but when i see all of the different recommendations today for mall stores, for people who come out, kohl's, l brand, tapestry, ralph lauren, foot locker, nike buys them, i don't know about that but what i say to myself, the street is prepared to open up and peloton may be the one, the one sticking point peloton is not an open up stock. peloton is a stay closed stock i think that's going to be the fulcrum. carl, i got to tell you, i think it's a fulcrum for what's going to occur because if you think that peloton goes higher, what you're saying is wow, you know what, we're locked down, but david, if you think that, when we get situations like i have brunswick on tonight, which is considered to be a company you buy boats because there is no place to hang out because it's safe, that's another one that is a fulcrum name, we're at a moment where i'm not quite sure how quickly we can open but i do know once we open, you're not

going to do the same things you've been doing. >> gosh i hope not really, please, i need to change some change. but yes, you're right. >> you never shopped anyway. >> no i never shopped and i've been able to keep swimming thankfully no peloton for me. but you mentioned, jim, we did see it was down, there is a downgrade this morning to market perform on valuation as you might expect, they had a very strong quarter, peloton, to your point. but we'll keep an eye on the stock, because raymond james talking of course, as you would expect, tough second half comparison not the only company that has been a beneficiary of course of the lockdown, or of, it's not a lockdown anymore but of course people staying home, jim, would he had this conversation yesterday with jamie iannone from ebay as well, any number of these companies that were part of that cramer index at what point do you start to see forget, don't own them and don't buy them >> now >> okay.

>> there's a lot of different situations where i really question whether, tough conversation, with linda reynold yesterday from clorox, i'm searching for something that tells me why i want to buy a company that will have a radical decline in organic growth. when you look at peloton, you obviously love it, so bmo comes out and says it has a market cap that is 22% of netflix, that's another software derived business, but it is less than 1% of its subs. now, they also came out last night and they said listen we got to spend $100 million to make sure you actually get our machines because of port issues. i don't know i don't know, david. peloton has been terrific. it is heavily shorted. 46 46 market cap but in the end do i want to own peloton? david, i think i want to own a company that does incredibly well when we open up and i'm not quite sure whether peloton is going to do as well

as some of the companies that are actually in the mall, which i know are the, the malls haven, but they could actually still go higher >> but not gamestop. gamestop is in the mall but it's not going higher or is it >> no, but activision blizzard shows you why it doesn't activision blizzard, a tour de force, and candy crush incredibly popular, raising the dividend, does he mention gamestop, no you know why you don't get your stuff from gamestop and i don't know how much time you spend in call of duty or the world of war craft but candy, and my wife plays candy every night, particularly when i'm trying to talk to her about anything seriously, and any time there is a scary move, she takes out candy. i can't multitask that, when i watch a scary movie, i watch a scary movie, and activision boyfriend clearly has the pulse

and ea -- activision blizzard clearly has the pulse and ea doesn't. and we're seeing people who know how to do it and people who don't. >> atvi guiding above as many companies have been doing this week, at least on march quarter revenues jim, if you're looking for eopening play, kohl's has con from 20 to 50 in a matter of 90 days maybe it's travel. although i've been wondering, i've been wanting to ask you whether or not the airline recovery play is going to get a little fuzzy, given that oil is now the highest in a year. >> i think it is a little fuzzy. you want a reopening play, you have to go with who reopened first, it was asia, and who was able to handle that, and capitalize off of that, estee lauder, el, and fabregio put up numbers, fabrizio put up number, and some of us are not aware what really costs a lot of money

when it comes to cosmetic, but double digits, online sales growth in every single region, 857 versus 550 last year and hero, very strong. the brands that people just love and this is asia i think el is going to become the primary name that people talk about when they go out. remember, it was good when it was a selfie generation. and then it was good when it was a zoom generation. now, you've got both you got to keep your skin care, and you've got look great, and this is an asian story coming to the united states. there's your open story, estee lauder >> yes, it's interesting you've come back to that. they seem to have been not particularly hurt though from people staying home. what about ulta, jim, another name that you've focused on that is much more on the retail side there, in terms of at least getting people to come in. >> i like ulta very much i like ulta very much. remember, a good deal with target the one that you mentioned, kohl's, david, do you know that

during this period of great morass that kohl's latched on to sephora which was a jcpenney and that's a lot of the growth for kohl's, and congratulations to kohl's, that was a total clue to get sephora, because people love sephora, it's one of everybody's favorite brands. >> goose as well canada goose is going to open, more than a one-year high, once again today, two upgrades on goose, largely an asian story, as david mentions, we'll take a break here, and man, a lot coming up this hour, on this friday morning we're going to talk to the ceo of ford, jim farley, about the quarter, the chip shortage and obviously the huge bet on evs and speaking of evs, the exclusive of the luxury startup lucid motors coming up after the break. ♪ ♪

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as the competition in the electric vehicle industry heats up with apple, lucent's had a great deal of attention and peter is here to discuss it and where is lucid's place going to be in the industry, given the potential entrant from apple years from now, but more specifically, tesla, obviously, gm committing so much to the industry, ford, and even the luxury automakers in europe as well starting to ramp things up. where does your company fit in

>> you see our very first vehicle, lucid air, in the background behind me, and we're aiming initially, unashamedly at luxury space luxury cars are dominated by the mercedes, bmw, porsche, and they all have one thing in common they're all gasoline so there isn't an electric luxury car available in the market that's the position, and progressively we will make cars more affordable and we will increase our volume accordingly. >> you are going to start rather small, of course, i think it's what annual capacity, the first phase of 34,000 units, you expect to produce six to 7,000 units this year, is that correct? and we're talking about, where, a starting price for that vehicle, around $70,000? >> that's absolutely right the air starts around 70,000 and goes right up to 161,500, after the dream edition, the model we

will start with, fantastic car, and we've already built our first phase of our factory in arizona, which is 34,000 units, but that site ultimately will be capable of producing 400,000 cars a year, where we implement phase four, with our six-year plan >> when is phase four coming >> mid 2020s >> so it's a six-year plan costs a lot of money to do that. we had the pfi on last week, discussing of course, in part, their investment, one of your significant holders. do you have access to capital that you need in order to actually pull off all of those phases >> we do, indeed and the public investment fund of saudi arabia being great strategic partners this is much more than a financial arrangement. this is a long-term strategic partnership. you're absolutely right. this is a capital-intensive business

but we've taken the approach, we need to be vertically integrated there is no substitute for having inhouse manufacturing and an inhouse retail experience so we are having a manufacturing inhours, and all of our studios are, inhouse, and all of our studios, retail studio, we already opened six of those right across the u.s >> peter, jim cramer as we talk, i'm exploring the idea of reserving with a credit card the air dream edition, 161,000. why am i doing that? because it's available summer of 2021 how many other people are reserving their various lucid airs right now, and can you give me a sense of the demand each day? >> well, it's overwhelming, jim, and i'm glad you have impeccable taste, sir, and we have bulging order book that is growing daily, as people are becoming much more aware of us, as a company, as a brand.

we were on stealth mode until the global reveal just last september, and i like the car to do the talking and it's going to be an amazing product when it comes out this year. >> what do we do, i know you work with elon musk, you've got a cordial relationship with him, this is 517 miles projected range, 800 horsepower, obviously, that is zero to 60 in two seconds, what makes me want to pay this much more than a tesla, everybody loves tesla, don't they i mean high consumer satisfaction, that kind of thing? >> absolutely right. i mean tesla has done an amazing job. and that's what's placed it in its preeminent position. but tesla recognizes that this is a technology play this is a technology race. that's why tesla enjoys such a high market cap. and i'm really disappointed with the traditional automotive industry it hasn't really taken up that

baton. and really compete tesla at the top table. now, our car is competing overtly in the luxury space against the likes of mercedes-benz, so i don't really see us as a direct competitor, as tesla, in the product but, it is a very valid comparison to compare us with tesla in terms of our technology and in a sense, lucid is very similar position to where tesla was ten years ago. tesla had the tech the other entries didn't and we see today a whole group of startups in the ev space that don't have the inhouse technology that's what differentiates lucid. inhouse technology world class electric vehicle tech >> all right, just give me a quick example of what that means. what is that >> well, the core metric is efficiency it's not range per se. because anyone can stuff a whole load of batteries in a car and

achieve great range. chi double the size of the battery park, double the range of the car, couldn't i and that is pretty dumb. i call that dumb range what really matter, the most telling metric of where any electric car company is today is a single electric, and that is, a single metric, and that is efficiency how far can i go per kilowatt hour and we can go well over four miles per kilowatt hour. this is world class technology here in the u.s. and lucid is going to take the tech to the next level that is our mission. >> all right well, peter, if i want to get a sense for how investors view your company, i need to look no further than shares of cciv. that's the simple for church hill capital, it's a spac and i'm sure you're aware of the fact that the speculation around it has been that you will merge with it to go public is that the case >> well, you know i can't comment on any such matters. i can neither confirm nor deny any such thing. >> well, let me ask it in a

different way though given that we watched that go up, since i think there was originally a bloomberg report saying you're in talks with them, if you're one value in terms of the way you're thinking about the company prior to, this and you watch this stock triple based on the expectation that you will be merging into it, does that change your own prospects or i should say your own view of the value of lucid right now in the public market >> no, i think lucid value will be truly realized when we've got this kind of production. i'm saying we do, until we made a productioncar and we start assigning customer, we haven't achieved a damn thing. and the team base is what we look out now, to industrialize this car as we transition from a primarily, an engineering, tech, and r&d company, to a phase of our growth where we become a manufacturing entity >> are you going to become a

public company either through ipo, or a spac >> i really cannot comment on that right now as you know. >> peter, quickly, i think you're dead right about ev i think the oil companies are thinking this is something that's going to be 2035, a lot of time. can't you just, honestly, can't this industry double, triple even by 2030, people don't want combustion engines they don't want them, peter. that's not the future. >> you're so right you're so right. i couldn't agree more. absolutely electric cars are inherently so superior to their gasoline counterpart. and now, i want us to be making you know, lots of cars as soon as possible. we start with high end product that defines the brands, the brand and because we're developing high efficiency, will bring the cost to mass produce evs down because the most expensive component in that car is the battery pack

and if you can go further, go more miles, for a given battery size, that's akin to bringing the cost down. and my passion is to be making lots and lots of cars using our advanced technology, as soon as possible it can't happen soon enough. >> all right well, peter, we will be watching closely, as we continue to watch so many of the names that we just had up there, that already are public companies of course, and both making the vehicles and the batteries, peter rawlinson, thank you. >> thank you. still to come this morning, first white house reaction to the jobs number this morning, and the road ahead for covid relief we will check in with our iefrnd jared bernstein member of the president's team of economic advisers don't go anywhere. investments, key portfolio events, all in one place. because when it's decision time, you need decision tech. only from fidelity.

futures are green this morning. as we are on pace for the best weekly gain in three months. and we're coming off record closes for the nasdaq, the s&p, and the russell, gngoi for five straight today we're back in a moment

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welcome back, straight to the opening bell, at the nyc and the nasdaq and a look at the bottom of the screen, and shooting for the best weekly gain for most of the major averages in about three months and the dow and the s&p going for five straight gains, something we haven't done since august jim, it's been, it's going to be a great day of interviews, we're going to talk to jim farley of ford and evan spiegle of snap which had a good number but some are honing in on this soft ebitda guidance. >> well, look, it was a great call, until the company basically lowered the boom and said the first two weeks of ads weren't that good because of a capital issue.

because of the rebellion and they also talked about working with apple and some of the apple privacy issues, but five billion pictures a day, it tells a story here, i think that this is a stock and this is a company that is really on a breakout, they're doing so many things that are right, they were the ones who kept their stock down, and i think it would be roaring, had evan just said look, we've had some momentary problems beginning in january but things are turning out, i'm proud of these guy, i remember how skeptical i was, but there's is a strong demand product, it does not have the, let's say the sweetheart image of pinterest but that's another one this is where the money's going. carl, people are going ralph lauren, is using the emoji product, from snap, for people to dress up 500 million times. people love the product. younger people love the product. they own the demo. congratulations, pulling it off,

congratulations to ben silverman for creating a site that is sweeter and gent ler we know that the web can be a brutal place and twitter sometimes, you can see people, somewhat hammered right but even with pinterest, it's like a lovy blanket >> that's good to hear because i think my daughter uses it and enjoys it i'm not a participant. so i know more about the brutal, the brutal place that twitter can be, certainly that you well know, not to mention reddit of course, jim. >> well, look, sticks and stones may break my bones, which is why i carry thermo nuclear weapons. >> is that pocket-sized? i thought you just had a space lacer. >> you know, this is one of those days, going back to last friday, last friday, the revolution was on, right, they were storm can the winter palace, to the finland station, it was about lennon, and lennon and trotski, versus the kults

and the czar sudden today, activision, blizzard, wynn resort, some of the oils doing well, it is kind of like business as usual, and i know a lot of people don't want that because business as usual is really boring, carl. but business as usual tends to make money and that should also play a role carl in the process of what we do. >> yes, but jim, you know, we're coming off ten days or so, where gamestop going from two and a half to 450 in the course of a year indicated to some that the market structure is broken so are we done with that conversation >> i think there will be, if volume picks up, i don't know if robinhood has the controls yet, we don't know, we don't know who gets best price and we don't know if commission free is really commission free last friday, when i was pulling out that catheter, and that's a nasty thing, we don't have to go too much into it, because there is a lot of information. >> thank you. >> gamestop was at 300 and i called in and i said i

thought it was too high, and what i got back, the blowback on twitter was so horrendous, that my wife actually took away my pc, which was okay, because when you have the stitches and the doctors, and the nurse, and they're probing you, twitter is just another, you know, distraction. but carl, in the end, gamestop itself, i search for words about how stupid, about how ill advised they've been they had a chance to reinvent the company. they had a chance to reinvent the ompany, the stock is back to where it was when it was a really good company but they said nothing and they hired a technical guy. i laugh sometimes because there are some people at gamestop right now and they're thinking, what have we done? like al ginnis, by the way, bridge over the water quiet, what have i done, because i know you're a cultural aficionado, but these guys at gamestop, i think they're funny, i mean i don't know, i have this image, like mo, you know, i don't know, maybe it's an abbott, you know, maybe it's naming johnson,

right, remember, david i've always thought they named the cans right now, gamestop, david johnson is sitting down with mo, larry and curly, saying should we start, and they're like ooh, ooh, ooh, there's -- >> there's a lot of references there. the jerk, the bridge over the river -- the three stooges >> we're going to get jared bernstein in a minute. >> ill advised >> listen, i understand the heat you can't. i can't imagine how you deal with it given the bit that i got on twitter as a result of just having the audacity to suggest that deals aren't done until they're done and that is of course the case for cciv and we asked peter rawlinson about it, and you do tend to wonder how you get a deal done when you were initially negotiating at one valuation for a company for

example and then you watch the stock of said spac skyrocket, reflecting the view of investors that the company is obviously worth potentially a lot more, when it's been rumored that that's going to be the merger you're going to, do so then you say, well, 15 billion originally, or 45 billion now, if you're rawlinson, obviously he wouldn't answer anything, jim, but we all know spacs continue to be another area of key speculation and i heard you talked to andrew about it on your tease with "squawk box. and a-rod, pricing his $500 million spac, carl, as well. and then we got other ones coming we got flying cars we got electric planes we got all sorts of stuff coming for spac land. just can't wait. >> we're going to ask in a second but larry kudlow has a spac. >> he's on the board i pointed that out that day. i think it was monday this week, yes. >> do you have to be involved with a spac, if you do the spac? >> do you have to be involved

with it? >> yeah. >> do you have to be involved? >> you have to be involved in the process. >> a target. >> yes >> not in time, but in picking the target. >> and picking the money oh, i'm sorry, target. you're absolutely right. and back to carl, i'm confused about the time that people have to spend on their spac. >> yeah, jim, we're in a new period we will talk about that in a minute as david said, we want to get to the jobs number and bring in jared bernstein, the council of economic advisers, congratulations, good to have you. >> my pleasure. >> the first number on the read is given the weakness in hotels and restaurants and bars, that the print certainly reflects a period last month when things were closing and that we're already back to a reopening phase, is the number stale >> i don't think so. i think today's job report shows that the u.s. job creation machine stalled over the past few months

and this underscores the urgent needs for the present american rescue plan. 49,000 jobs is far too low but if you look at the private sector, it's only 6,000 in january. that's essentially zero. when you factor in the negative revisions, which are important, and about 160,000, that's a negative, over the past three months, payroll job gains have been 29,000. now, back that up to the prior three months, it was over a million. and that is a massive downshift in job gain, and it just shows you the extent to which the air pocket has really significantly dampened the employment creation function, and so the necessity, the urgency, the steep cost of in action around the american rescue plan, very much i think amplified by this job report >> does the argument for more stimulus or at least a high number on the stimulus package, jared, get more complicated when

you've got the savings rate, in double digits, and ism services, two-year high, a return to job growth, tepid though it may be >> that's a very important and a fair question. and the reason why the answer is that none of those statistics push anywhere near against the urgency of the plan, is because we are deeply into a k-shaped recovery we can talk about gdp, we can talk about the stock market, but we also need to talk about rising poverty, we need to talk about 24 million people facing hunger, evictions, foreclosures, and you know, there's still, even with the unemployment rate today, there's still 10 million people unemployed, black and hispanic unemployment rates are highly elevated around 9%, 40%, this is a very high number, of the 10 million unemployed, are long-term unemployed persons that means they're stuck in joblessness for at least six months so if you look at the people who are suffering the brunt of the virus and the economic impact,

it's folks on the bottom leg of the k, the people who are targeted by this american rescue plan >> jared, this is what is so disturbing to me so many people got money who have jobs. so many people got money who frankly are doing well and then the people who aren't, they got the same amount of money. isn't it time to recognize just as you just talked about with the k economy, let's flood the zone of people who aren't doing well, let's flood the zone of minority businesses that have been hurt, more than ten businesses for who we know are doing better, and why can't we make it so the people who need it get the money and the rest of the people continue to lead their lives? >> so first of all, let me underscore elevate and amplify, one thing you just talked about. minority businesses. we know for a fact that a person's, persons of color, ent entrepreneurs of color, communities of color, were tremendously underserved by the business relief, the paycheck act, now the president, when he was campaigning, was always

leading with this point when he talked to us on the phone about the problems that were ongoing, and so in the american rescue plan, the business relief is acutely targeted at businesses of persons of color, so that i think is a real advance. on your other point, gain, if you, again, if you talk to president biden he talks about people in the middle kwclass wh are struggling and you ask still have a job and you lost hours, lost wages and you might be not able to make your rent and you may have mortgage for bearance which is by the end of the period, you will have be faced with a big bill and those with negative or zero savings rates, to me that's a feature, not a bug. >> and let's talk about industries decimated, the restaurant industry decimated. people going out travel is there anything more that should be done there can we make it so that there are grants, maybe, you have such skilled business people in the

administration, and there could be applications, targeted to be able to say, you know, what, when we're vaccinated, we want to reopen, could you give us a low interest lope. a low interest loan, get people back into cities, because again, the minority businesses were the ones that were struggling and they were doing great, and then they just got crushed, and we got to reopen them. >> you are so right about this and you know, even with low borrowing rates, there are many businesses for whom a grant just makes tons of sense and a loan is a very heavy lift so i share, i share that and in the american rescue plan, trust me, we dig deep, and presisionly that problem i think -- precisely all of that problem. and i think what today's jobs report does, i think it is such a powerful data point in this argument, it just underscores the cost of inaction when you're adding 29,000 jobs a month, on average, over the past three months, that is a labor market stall we had in the wings a plan that could finally get american businesses and families to the

other side of this crisis, and finally control the virus and distribute the vaccine, to launch a robust recovery, one that's inclusively and racially equitable, and precisely the way, jim, you're calling for it. so this report underscores the urgency of the american rescue plan >> hey, jared, it's david. an advantage for us, perhaps a disadvantage for you, we've been talking to you for years and having a conversation that is ongoing so i happen to know how important you have viewed infrastructure spending for many years and if you push through a $1.9 trillion plan under budget reconciliation, what is your hope for getting infrastructure done as your next thing and why not sort of incorporate an infrastructure in some way in the current bill, and try to get it all done at once? >> my hopes couldn't be higher about getting an infrastructure bill down the road but who cares about my hopes it's the president's hopes that matter most. and trust me, he shares my view on this.

or i should say, i share his view and here's why i used to testify in congress, in the trump years, and after that testimony, i remember vividly once a couple of republicans, i won't name them, members of congress, pulled me over and said, democrat, come here, and what they wanted to talk about was they wanted to do an infrastructure plan, but president trump never gave them anything i mean this plan wasn't even an asterisk it was just fluff. president biden and our economic team, our department of transportation, we are already working on a robust infrastructure plan. and you don't make any guarantees in politic, so i'm not going to guarantee you, but i believe that that plan will get bipartisan support and i'll be happy to come back here, and evaluate. >> more than 60 voits, jared more than 60 votes >> i am not going to count noses but i am confident that republicans have a real interest in doing more on infrastructure,

and investment in the public, given how deeply we have ignored that, and that is at the core of a biden building back better agenda first we have to enact the american rescue plan the fiscal relief to get to the other side of that crisis, and then it's build back better time, when we start to focus none just on recovery, but on a much more robust, resilient and racially inclusive recovery. >> finally, jared, two quick ones from me one is there's a headline that pelosi is under pressure, to separate vaccine funding from broader covid relief is that getting any oxygen >> i haven't heard anything about it look, to me, that strikes kind of the wait and see problem, which is exactly why we're looking at a jobs report, that has 6,000 jobs in the private sector, 29,000 jobs over the past three months, and that's a job stall. that is the result of an air pocket, caused by inaction and wait and see we can't afford to do that again. and the american rescue plan is calibrated to reverse that

damaging trend >> okay. and then finally, any readout at all from yellen's meeting with regulators on market volatility. >> i have no readout on that others might >> jare, great to have you appreciate the guidance coming out of the number. have a good weekend. >> thank you you, too. >> jared bernstein we'll take a break here. obviously markets coming off the initial highs. big morning of interviews, jim farley of ford, eric nordstrom, first interview since becoming ceo, evan spiegle at snap and john foley of peloton. don't go away.

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take a look at shares of exxon, up sharply and we talked

about oil being quite strong but this also is because of this continuing thing that i've been focused on of course, bloomberg reported this, i can confirm it as well, jeff utman, somebody of -- jeff ubben, fund remember he has been the founder of value act esg focused fund and they are in talks about at least considering bringing him on the board of directors. that would be quite a move for exxon, one would have to say given ubben's view of the industry and what needs to be to position properly for the future we talk about it often, jim. not that darren woods hasn't given voice to these things, they are way ahead of everybody in terms of technological breakthroughs, although they continue to invest in that there is a lot of tension about their capital spending plan, as i pointed out. it's not just engine one it's d.e. shaw a part of this

conversation they didn't go after nominating anybody for the board, but they certainly are behind this idea of having him join and making a large investment potentially as well that may be contributing to exxon's move up, although, to be fair, chevron is up this morning. exxon has been outperforming chevron for a bit of time as well perhaps on the hopes that things are changing >> i am beginning to get very impressed with the things that darren woods is doing. the ceo, got a hand that was just okay. mike got a lot of growth at chevron. david, jeffrey ubben would come in, he could say in order to get exxon right, we have do this carbin capture, be able to be the leader, we have to lower our emissions, methane more than we think we do. i don't know, david. you've got to -- can people change stripes this is -- david, this is a different exxon. i am liking what i hear.

they put ubben and you have a company that says, wow, we're going to change. i want change. they are going to give it to you. >> interesting to see that board room with him in there, as well. i don't know we will see if they can get there. you're right, jim. so many things wrapped up in exxon in terms of the growth of ev, although when you look at the projections it's still not as though 50% of the energy mix even by 2040 is not going to be gas. there is a lot of different components here. depletion curves and other things you need to look at in terms of how they figure out how they are going about choosing to spend their money right now and preserve their dividend, which, of course, they continue to do it's quite a significant yield, though far less than it had been when the stock was at the lows not that long ago. over to you. >> what a week of spend for exxon developments record highs this morning on the

s&p, the nasdaq, the russell dow needs about another 100 points to get one of its own we are back in just a moment

got some volatility in gamestop this morning bounced right off an early morning low of 51. up 37% currently halted at 73.40. got something to watch this morning. don't go anyerwhe.

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let's get to jim and "stop trading." >> we talk about electric vehicles all the time. how about hydrogen the stock to buy is linde. steve angle doing terrifically, crushing their competitors this is the way to play it and not have as much risk. i know a lot of people like risk if you don't want risk, buy linde. >> all right jim, i know you got e.l. tonight, which i believe led the s&p a moment ago. >> yeah, he is a genius, first time on cnbc sanofi has vaccines, a broad pharmaceutical company and brunswick, are people still going to boat after we get jabbed i think the answer is yes.

what a fabulous week thank you for letting may come from my home you know you can't keep me away next week. >> you are going to come back, i think, right we will talk ford later on this morning? >> yeah. absolutely i am going to rip the stitches out and do ford because it's time to play the game. no more. no more hurt i am not on i.r., for heaven's sake. >> see you in a little bit "mad money" tonight 6:00 p.m. eastern time welcome to "squawk on the street." i'm carl quintanilla with david faber and leslie pickard russell off a touch, shooting for the best weekly performance since november a big show ahead this morning. we will talk with the ceos of ford, nordstrom, snap, peloton as well as goldman's on this morning's jobs number. we begin with more stories regarding gamestop and, of course, the reddit trade. >> janet yellen meeting with top financial regulators yesterday

to discuss the volatility in names like gamestop and atm. today those stocks moving higher gamestop briefly halted. it's since resumed trading up 55%, amc up 11% trying to pare back some losses from earlier this week. so joining us now is harvey, the chairman and ceo of cal ram a partners, former s.e.c. chairman, harvey, thank you so much for being here on such an important week in the markets with regard to regulation. as we mentioned, there was that ming of the minds, meeting of the regulators that took place yesterday. they released a statement where they said that the core infrastructure was resilient during the high volatility and heavy trading volume they agree on the importance of the s.e.c. releasing a timely study of the events, but i want to start by asking you kind of beyond a study, beyond even enforcement perhaps, what do you make of the current security laws on the books right now? do you think they need to be changed or altered in any way to

account for this era of social media, commission-free trading, hedge fund participation, algorithms, all of that. do they need to be modernized? >> i don't think there is a need for a change in the rules or statutes that govern the trading. i think the difficulty is figuring out how this new environment of social media can or should be regulated we have seen market volatility i think the regulators are taking a look at it and they are going to examine whether there is any improper activity but at the end of the day, the real question is, can you prevent people from posting on social media what they think should be done with a particular stock? i think that gets into very difficult questions, and i think it makes it very hard to come up with new rules or regulations. >> so, you believe you can't

prevent people from posting on social media, which would then leave the s.e.c. to seek more of an enforcement mechanism there have been reports that the s.e.c. is reviewing social media for signs of potential market manipulation, fraud, and so forth. supposedly, this is being done in conjunction with an examination of the trading data. you know, what might be the s.e.c. even be looking for here and how heavy of a lift is it to really come through all of that data to find something that indicate to them that there is manipulation or fraud? >> well, the technology wthat te s.e.c. has at its disposal now is quite robust and it's pretty much state-of-the-art for purposes of checking into market patterns and transactions. i think the s.e.c. is going to look behind the scenes of emails and communications who was putting the postings on

reddit and other places? what was their motivation? are there any indications that what was intended was to manipulate or artificially influence the price of the securities that's the key test here in the manipulation case. did anyone post false information? another key issue. those are things that the commission is very well equipped to look for and they will go through these materials and come up with an analysis that tells us what they have found. >> another area that's gotten a bit of focus is clearance and settlement it still takes a couple of days at least to get that done. in this digital age, one would imagine things might move faster what are your thoughts >> my thoughts are that this has been a recurring problem since i first started in this industry in the late '60s and i think it is problematic

that we don't have same-kday or next-day settlements and look at transactions and know what the state of each trade is at the time the trade is occurring so you can check on what is taking place. there is a lack of information parroting between people who buy and sell long and people who sell short there probably needs to be more disclosure of short positions so that people are aware of the activity but, in general, i think we need to be able to move digitally to a same-day or next-day settlement process >> yeah, it would seem that is something that's possible. when you talk about more transparency on the short side, do you think would be worth doing? people point to europe in europe, they don't have nearly the liquidity in their markets that we do >> that's right.

and that's why a lot of the attacks we have been hearing on short sellers are, forgive the pun, shortsighted. it seems to me that short selling enhances the marketplace. the real question is, do people know what the status of a particular security is in terms of who holds longs and who has shorted it at present, when people purchase over 5% of an equity security, they have to report that the short selling rules are not as robust, and i think what we need are better disclosures of short positions so that people are aware of who has what at what time. >> harvey, what do you make of the way that robinhood has been handling things? the brokerage announcing yesterday that it removed some temporary trading restrictions there was a bit of confusion when those limitations were

first put on and all of the various changes surrounding those. do you think that the company and its ceo took the right steps, made the right disclosures in compliance with securities laws? >> well, i haven't looked at everything that the company has said and done, but i would start with the proposition that robinhood is clearly a victim of its own success. they came up with a novel way of getting millennials and others interested in securities trading, and they became so popular and so successful that when they met the social media push on gamestop and then amc, the amount of trading required it to post higher security against potential defaults those requirements are necessary to keep the stability of the system and the financial stability in place and keep them

intact so robinhood had no choice it either had to eliminate some of the trading, or it was going to put itself at risk for greater amounts of money whether they made proper disclosure i think is something that the s.e.c. and others will look at. but the point simply is you can't keep allowing people to trade unless you can post enough security and cash, and that's what robinhood was trying to do. >> well, there is not a robinhood restriction, but the exchange has halted gamestop once again this morning so far twice by my count, the stock up 48% right now. thank you so much, harvey pitt, former s.e.c. chairman, for your insights on this ever evolving story. >> my pleasure. meanwhile, we are watching

j&j, requesting emergency use authorization from the fda meg tirrell is with us to talk about the timeline for the coming weeks hey, meg. >> hey, carl well, that application from j&j for the one shot vaccine going to the fda last night. the company says upon authorization if it receives that, they will start shipping immediately and have 100 million doses ready by the end of june of course, this being one shot, that's enough for 100 million people now, how does this timeline, so we have also heard from the fda last night that they set an advisory meeting of february 26th that is when its outside group of advisors meets to discuss these data in the previous instances with pfizer and moderna, the fda cleared the vaccines the next day. check out the differences in timelines. the blue dots are when they submitted for fda review and then you can see how long between the review was submitted and the fda advisory meeting for pfizer, it was 20 days

moderna, 17. j&j at 22 days you can see that the fda acted very quickly after that ming the next day, clearing the vaccines and a few days later they started hitting the market so there is already criticism this morning why the fda is taking slightly longer for the johnson & johnson vaccine for the others and others hoping they would go faster than those vaccines experts remind us that the fda does its own extremely thorough review of these vaccines and we will see the fruits of that just a few days before that meeting on february 24th after that, j&j will start shipping we don't expect tremendous supply immediately, less than 10 million doses at first, but that will build up over the first course of the half of this year. guys. >> meg, thank you. coming up, shares of ford are reacting positively to earnings they came in above street estimates, although, let's call it flat on the day ceo jim farley is going to join the show next. st tre n'wa to miss that.

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welcome back to "squawk on the street." take a look at shares of gamestop up over 40%. still not enough gains to pare back some of the losses for the week, but clearly up quite substantially today after being halted twice so far this morning in just 45 minutes of trading, so far the day is young, still ahead though, goldman's chief

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in action, now up 35% after being up a 48% prior to the second halt of the morning jim cramer is going us to talk with ford's ceo in a moment. jim, curious whether or not you are big this sort of vague notion that's been posited the last couple of days that there is some sort of inversion relationship between gme and the broader market that somehow replaced the vix or whether that's stale at this point >> well, i like it just because it's obvious that it's captured the attention of america but the one thing i have to point out is that unlike the vix, which is actually just an algorithm, there is a real company at gamestop. there is real people who work there. there are people on the board. they have advisors they have accountants. a man by the name of george sherman, okay, he is the ceo they have not made themselves

available. they are incredibly ill advised. they think somehow that this is -- that they have the right to remain silent there is no miranda warning here, carl this is a company that should be at the s.e.c. saying this is what we need to say. we have to put this in perspective. but they are not doing that. they are hiding. and when you hide, matt francis, new chief technology officer, when you hide your board of directors, what happens is we get a very unfair situation, and i think it's so unfair that it's time for gary gensler to make a phone call >> i know you tweeted a moment ago just looking at the things they could do with the fresh raise of capital you said they could buy a gaming company. they did make some leadership announcements this week. they created a new cto, hired someone from aws they are clearly not ignorant of what's going on. >> no, but i have invited them

on many times. sunlight is the best disinfectant they are, obviously, i guess, traumatized, i don't know, paralyzed. they made those announcements. the material nature of the stock, i believe they don't think the balance sheet is that bad. they actually bought back a lot of stock i was very close to this company when paul reins ran it you know, i am kind of embarrassed for them this is a $5 billion company that has captured america. they could easily call a press conference but the s.e.c., gary gensler, it's time for the division of enforcement to call them the clock is ticking the division of enforcement should call gamestop in. they should come on tv and they should end this charade. >> what are they going to do, jim? it's not like they are going to say anything what do you expect them to say pause t they will say we are just trying to run our company. >> do they not have something to do with it >> well, i don't know.

obviously, a lot of people went in after ryan, what's his name, the chewy guy came in. why hasn't he collared his stock? i have no idea not to mention leslie picker, have there been inside sales at gamestop i mean, you had the stock that was four bucks, two, whatever it was, and suddenly people had a windfall that they never could have imagined and they have been selling like crazy. >> from what i could - >> that's why gary - >> filed on that. >> right. >> so we know. >> gary gensler is the head of the s.e.c. leslie, i would kind of pay him a call or get their lawyers in because there is so many people who are thinking about what gamestop's doing david, gamestop may be doing something. there may be something material. but their silence to me has become deadly, frankly. >> they can just put out a statement that says we can't understand the activity in our stock. i don't know beyond that what you pointed out, they haven't decided to sell stock.

people have different theories as to why they have chosen not to may have something to do with the gentleman i just mentioned as well. i am amazed we haven't seen more insider sales there. i don't know. >> well, adam aron, look, adam aron took advantage of the buy in amc look, these guys need to reinvent themselves. zynga, we talk about that. maybe they should be looking at that they have enough capital to become something that they are not. right now they are a chain that has leases and does, you know, look, they were very lucky there is a shortage of playstations and xboxes. in the end, i like to see a plan david, maybe they have no plan whatsoever maybe it's just a colossal joke being played on everyone i like to think that in the end they are thinking people, they should be talking about what they are going to do if they are selling stock, that's material and that is very ill advised. >> you had a business model. you were following it. you got an investment from a guy a lot of people think is

credible he went on your board. that was a positive, leslie. then this happened i don't know what you really can expect them to actually do or say -- >> forget it they should say, listen -- >> you seem to be trying indicate that the company is worth 70 bucks a share i mean, what >> no. i think the -- okay, listen. let's just cut to the chase. i want them to sell 25 million shares right now, okay just sell it so, therefore, we take off the idea that gamestop doesn't have a plan maybe raise money. it's crazy they are getting an opportunity to become another company. they are getting an opportunity to and they are completely blowing it, david. >> use of proceeds are the biggest question here. in the secondary offerings you have to be super, super specific on what you plan to use them for. i was talking with a bunch of capital markets bankers about why haven't they sold shares, what are they doing, what's kind of driving this. one person joked to me that they

should sell a bunch of stock and put it in bitcoin and prop up the value of their company for a while, although i don't think that would help their cause. >> leslie, leslie, leslie, you just mentioned that. you are going to double the stock. >> it's a joke just to be clear, everybody, it is a joke. >> it is a joke? >> it is a joke. >> you think -- okay i thought you might -- the stock is going to double >> you know, to the source's points, like they don't have that much debt to pay down, you know. >> general corporate purposes. you could just sell stock and say it's for general corporate purposes. >> you can, but for the secondaries, they -- >> it's a primary offering it's not a sale biggesting shareholders i don't know. >> look at activision blizzard. >> okay, yeah. bobby kodik. >> you got me spinning, leslie i remember when square did

bitcoin. you got me going now i may have to pay a courtesy call to george sherman by the way, if sherman is nominated for bitcoin, he probably will not run. i do think that it's become -- literally it's become kind of a comedy down there. you know, maybe, maybe -- oh, it's coming to me. the producers! >> springtime for hitler >> yeah, there you go. >> no, no, no, not that. well, hey put him on the board. >> great analogy. >> leslie, you are so darn smart. leslie has the plan. >> great >> leslie knows capital markets and broadway i can tell you that. by the way, activision blizzard is leading the s&p we will take a break and talk with the ceo of ford in a minute

good morning, i'm sue herera here is your cnbc covid update at this hour the united states recorded more than 5,000 covid deaths on thursday that is the biggest one-day toll of the pandemic. topping the previous high mark by more than 600 those numbers, according to johns hopkins. new cases, however, remain near the levels that we were seeing before thanksgiving. u.k. researchers say the astrazeneca vaccine is about as effective against the kent variant circulating there as it is against previous versions that study has not yet been peer reviewed and astrazeneca says it expects results from its u.s. testing in the next four to six weeks hotel groups in great britain are complaining that they have not had enough time toprepare for the government's new plan to quarantine some travelers for ten days in an approved hotel room and in the netherlands testing facilities will be using a machine that can detect the coronavirus in a person's

breath a positive result would be followed up by a nasal swab test you are up to date, karm i will accepted it back to you >> all right sue, thank you very much sue herera. ford, of course, with numbers last night talking about the chip shortage, the economy, their commitment to ev phil lebeau with a special guest. hey, phil. >> hey, let's bring in jim farley, ceo of the ford motor company. lots to talk about first off, starting with the chip shortage and then we will talk about your ev commitment. with regard to the chip shortage, you are cutting 10 to 20% of your production this the first quarter. you may suffer an impact from the chip shortage of a billion to $2.5 billion this year. how bad is it and how long do you expect it to last? >> well, we're really seeing visibility, phil, hi, in the first quarter. we think it's a first-half issue. in fact, we are planning on increasing recovering some of

that with production the second half we have about a 26-week supply chain from wafers until we get the control modules to go in the vehicles it's too early to tell it's a shortage across the country. it will affect everyone. it's early days. we are doing a lot ford knows how to scramble, and we are adjusting yield management, moving the chips that we have to the most profitable vehicles, our electric vehicles, you know, protecting production in stre strategically important vehicles. >> you mentioned electric vehicles let's talk about the commitment you guys announced last night. $22 billion that will be going into electric vehicles through 2025 doubling your commitment, essentially. you said on the call last night, this is it we need to become the player in electric vehicles, not just a

player, but a leader in electric vehicles does this get you there or do you think that this is simply the latest commitment, there is going to have to be more down the road >> well, first of all, we are not going to cede the future to anyone our electric strategy is specific we will invest in segments where we are the dominant player and we have scale like the f-150, the transit van, our mustang and this is the year we are not talking about aspirations. we think it's a credible competitor it we have the e transit, f-150 electric, we are building a plant in dearborn, almost a $1 billion investment in the middle of next year we are going to invest in commercial and performance vehicles we are really excited about this change but our strategy is very specific, and, you know, it's now. it's happening now one out of ten vehicles in

western europe in december that were sold were pure electric >> jim, how worried are you about a potential battery shortage for the industry in specifically battery cells a note today saying they are hearing this from clients saying, look, everybody and their uncle wants to come up with a battery electric vehicle right now, as you were indicating there is not enough supply right now. the question becomes, are we hearing aspirational goals from you and other automakers that you won't be able to meet to the full capacity because there is not enough battery cells out there? >> i can't talk about other people the first inning, a lot of companies like us, we bought our cells. there was actually an oversupply situation. but now with these ramp-up in production, these plants going in place, we have to secure supplies so we don't get in situations like we are in chips and that's going to come down to every manufacturer making the commitment

we have ounce own decisions on vertical integration our $22 billion does not include that more news from us. you can expect more news from us on the vertical integration. it's important for the labor strategy to move that chip production in the united states. those are bad shippers they need to be near our plants and that's really important for our country. >> guys? >> jim >>. >> yes. >> you came out swinging jim, you came out swinging on this call. you mentioned something and you talked about model -- i got to go to it this is something that the viewers really want to know. you said our first all-electric, and i am reading, mustang mack e which we and others, others believe is the first credible massmarketing competitor to tesla. tesla doesn't do any advertising. tesla doesn't have to. people love tesla.

suspect that hubris, mr. farley? >> no. i don't think so i mean, look, we are a humble company. ford motor company we are ambitious we spent a lot of time on this vehicle. it's got detroit swagger, great technology, a fantastic range. we still have 127,000 benefits of the 7,500 tax credits, so that the price is in the mid-30s. you know, it's fully competitive with the access to the best charging network in the u.s. >> okay. but let's talk about the notion of who ford is, that when i -- ten years ago i went to ford to the riverview plant, old-fashioned metal bender place. we talked about ford making the best cars everywhere in the world. the ford that i'm listening to, the jim farley ford, is about making profitable vehicles everywhere in the world. if they are not profitable, i don't know, jim, you are

breaking the tradition it sounds like you don't want to lose money on cars >> correct yeah, we took the tough actions in europe. we just announced the manufacturing withdrawal from brazil you know, look, we don't have that luxury. we have to make money. if we don't have products or even regions that are profitable, you know, we are dealing with those why? because that funds our whole modernization of the company and, ultimately, our disruption of ourself we have to have profitable business, not only is it good for shareholders and that's what they except for us as leaders, but also it is the lifeblood of our investment to modernize the company. >> jim, it's phil again. yesterday we reported that apple is close to finalizing a deal with hyundai kia to manufacture an apple car, potentially at the kia plant in georgia now, it may not come out until 2024, even if they can hit that target that's out there. but there is no doubt that they

are moving down this path. they have had conversations with a number of automakers two-part question for you. first of all, what kind of conversations have you had with apple in the past about their aspirations when it comes to be a apple car, and more importantly, what does this mean if there is an apple car 2024-2025, what does it do to your planning? >> well, first of all, i am not going to go into rumors. i don't know much about all of that all i can say is we have had a great relationship with apple, really focused on car play we made a big announcement on google but we really want that car play experience in the ford cars to be the best apple experience out there. and we will keep working with apple until that happens and they are very ambitious. they want that experience to be better and to be fully kpettich as far as new competitors, we will see lots of new competitors in our industry. that's great you know, ford is focused on the segments that we dominate already. we are 50% of the commercial

business in the u.s. that is who ford is. super duties, transit vans, police intercepters, and that's where we're electrifying because we have large scale. we saw more than 780,000 f-series last year some have duty cycles that are perfect for electric because the population is so big they are asking us for electric e-transits and so that's our strategy and it's not, you know, and it's simple focused on what we do best >> do you expect apple to, ultimately, have an apple car? >> i can't talk about other companies and their ambition but we should expect in our industry all sorts of new competitors. i don't know who they are going to be. there is a van for amazon for their delivery business. you know, we shouldn't be surprised by that. it's a great industry.

a lot of customer engagement but in the end of the day, you know, ford's strategy is to focus on what we do really well, which is commercial and performance. >> jim farley, ceo of the ford motor company joining us today thank you, jim appreciate you taking the time to talk with us, laying out the strategy for the future. carl, i have to tell you, and i have talked with jim kraumer about this, if youlissed to that ford conference call last night, complete 180 compared to a couple of years ago. he was strong. he was declarative and basically said this is where we are going. now, will they get there down the road that's the challenge, to execute. but far different approach than what we saw a couple of years ago. >> something that jim saw coming a while ago. phil, great stuff. thanks to you. thanks to farley, and to our own jim cramer that's phil lebeau talking ford. the u.s. returned to job growth in january, the jobs number at 49k. unemployment 63.

jan hatzius, chief economist at goldman sachs. happy friday good to have you. >> hello >> i know you took a cue from adp and upped your estimate to 200. any explanation for why it came if, i guess, a little south of at least your expectations and some others, too >> yeah. we shouldn't have upgraded, obviously. i think explanation is leisure and hospitality was weaker than we thought the tee decline in december was it but we had another meaningful decline and also didn't get the boost in some of the other areas that we thought was going to come from seasonal factors so the headline definitely on the weaker side in the establ establishment certainly in the payroll numbers. that said, we did have a big increase in the work week. so hours worked in january were actually up pretty significantly. temporary help services also up. some of the more leading parts

of the payroll report. i thought they were actually encouraging, even though the headline number weaker than expected, at least what we expected. >> the president a moment ago in the pool spray today said at the current rate it will take ten years to get back to full employment he was responding to the jobs number how would you advise viewers to separate the numbers and the trends themselves from, obviously, the legislative push that we are under. in this case, it involves trying to highlight the risks, not the upside >> well, i would say that these numbers are very volatile. we have been going through a weaker period in the economy the virus situation has deteriorated since the fall. that's weight on the economy, especially in areas like leisure and hospitality. i think all of that is going to change in coming months. you know, we are seeing the virus situation starting to

improve, and the seasonals and the higher temperatures over the next few months i think should reinforce that trend we are also seeing more rapid vaccinations that will also help. so i think we will have an improved situation in terms of the virus, and that's going to have important implications for the economy as well. fiscal policy is also turning much more stimulative. the president is making a strong case that we need to do more we are building in a significant further package. not the 1.9 trillion, but a little over 1 trillion on top of the nine hundred billion that was passed the end of december so i think there are a number of factors to expect a pretty sharp acceleration in growth the next few months. >> jan, do those tailwinds you outlined help bring people back into the work force? about 400,000 people, civilians, have left the labor force is the snapback quick in getting

them back into the labor force or does that actually take time to filter through and is there anything policy-wise that the government should be doing to bring people back? >> yeah, month to month these kind of labor force numbers are very noisy in the household survey, especially when you have this change in the population controls that is sort of a structural break that occurs once a year at year-end. but you're right that there is still, labor force participation is still well below where it was prior to the pandemic. employment is very far below there is still a very substantial amount of slack in the economy. so i am certainly not saying that we are close to full employment or anything like that what i am saying is we're still in a pretty deep hole, but we should start to climb out of that hole quite a bit more quickly in coming months. >> jan, i am curious do you think $1.9 trillion is the right number, toor is there any concern that it could overheat things? >> mine, i don't think we are

going to have overheating. economy when the employment to population ratio is four percentages points where it was last february. it's going to take not only a rapid pace of growth for a few quarters, but actually pretty strong growth for a couple of years before we're really at levels where it would be much more worried about overheating so substantial fiscal support is, i think, the right policy, and i do think it makes sense to do more. we think, ultimately, it's not going be quite as large as 1.9 trillion, but i think face c fiscal policy being expansionary is a better approach than in the aftermath of the last cycle. i think that's an important reason why we're climbing out of this unprecedented downturn. i think pretty quickly we'll --

or more quickly. >> yeah. after the georgia senate seats were settled, jan, did you put out a note saying that you thought q1 stimulus would probably be about 1.1 trillion is that number still fresh in your view and whether or not you have been surprised at the path or the speed of the path to would-be reconciliation? >> yeah, we have been lifting it immediately after the georgia senate results we said 750. then we lifted that to 1.1 trillion i would say the risks to that are probably on the higher side. it's still going to be a while probably before we know for sure but the path has definitely gone in a more expansionary direction and that's, i think, further lifted the expectations for growth so we have been lifting our gdp expectations as well from levels that were already on the, definitely on the higher side relative to other forecasters.

and maybe even further to go there are downside risks as well, of course. we are still dealing with a very dangerous virus. there are many uncertainties around there, but i think fiscal policy is a reason why, ultimately, things might be even a little bit faster than what we have in the forecast at the moment >> yeah, we do have to give you some props, jan, because your calls in 2020 in retrospect have turned out to be very good just another sign of just how hard 2021 is turning out to forecast good too see you thanks jan hatzius the goldman sachs. in a few minutes here, nordstrom's ceo on the heels of their investor day and, come on, you've got to check gamestop, can't you? can't let ten minutes go by. up 10% off the highs but a significant c so btage increase. amal ait of a gainer we're right back

facebook now 17 years old. we track where it's been and where it's going from here, especially with regulation and competition facing the social media company. that's on tradingnation.cnbc.com more "squawk on the street" coming up.

welcome back to "squawk on the street." february is black history month and we are hearing from osome o our cnbc contributors. sharing her gratitude for the trail blazers that came before her. >> i think about the sacrifices that generations before us made to put us in the position that we are now i think about everyone who participated in the montgomery busboy cots and what they went through. so when i feel down i just remind myself that i'm standing on their shoulders and i have the obligation to push forward because they blazed such a path

for me and for you, as well. >> you'll see a lot more on black history month the next few weeks on "squawk on the street." for more on helima's story, head to cnbc.com. stay with us no one likes to choose between safe or sporty. modern or reliable. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure. ♪ ♪ ♪ from banking to manufacturing,

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nordstrom executives laid out a new strategy yesterday it an emphasis on digital and its nordstrom rack stores and a slightly weaker sales. it did send the shares down a bit. you see only off by half a percent. joining us is nordstrom ceo erik nordstrom. erik, great to have you this morning. fiscal year 2021, you're talking about digital 50% of overall revenues could you ever imagine opening another physical store, even your smaller format? >> yes, we can i don't think for our nordstrom stores we don't have any plans to open there. to state the obvious it's hard to see new mall developments going on we see a lot of opportunity for growth there and it very well could include new physical stores

>> and digital 54% of the last quarter, you see it as much as half of all revenues that is where the investment, i guess, is going. tell me what nordstrom will look like as a retailer from here on given we know it, of course, by those stores, by the 249 rack stores and 100 full line stores. digital seems to be the future for this company >> well, it's really a combination. we took a customer at the center and customers, there's not channel customers. they shop as they want to shop and i think you see in a number of different categories retailers who have been very successful by leveraging their physical assets and layering on digital assets on top of that. it's what we've been investing in the last several years. while we don't know how it will play out, people will return to

stores we believe in stores we believe in digital. and our physical portfolio -- we have nordstrom stores, nordstrom rack stores, local hubs that we've launched in los angeles and new york that have been very successful for us. so we like that mix of physical assets and pairing them with our digital assets we think we can serve customers better >> i recently was in your beautiful store on 57th street in midtown, manhattan, on the west side. i was one of the few customers in there what is the future like? and when yousay get back to normal, do you expect customer counts will return to what they were in 2019 and stores like that >> we don't think normal is going back to prepandemic levels this is a strange time particularly big urban centers, you don't have office workers, you don't have tourism and for what we sell there's

head winds the pandemic has brought for a lot of fashion that is a moment in time people will return to getting out amongst people and something new. and that day looks more sure than ever with the vaccine rolling out. we do believe in physical stores a and in particular new york we really love our location there. >> yes, it's a beautiful store i noted you spent a good amount of time during your chat talking about esg. why? >> well, it's evolved over the years and for a number of years it's been a very important

subject for our employees and to be a great employer and one our folks can be proud of it's been more important to customers but to investors where some of these governance subjects were dealt with separately. it is really core to a lot of the big funds in the investment decisions. they want to know what companies are doing, they want that transparency we think it's the right thing to do >> erik, we're out of time but look forward to having you back as we track your company's progress thank you. >> thank you snap ceo evan spiegel. "squawk alley" starts in a couple of minutes.

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so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪ good morning it's 8:00 a.m. at snap headquarters in santa monica, california 11:00 a.m. on wall street. "squawk alley" is live ♪

♪ ♪ ♪ ♪ happy friday welcome to "squawk alley." i'm jon fortt with carl quintanilla and julia boorstin a big, big hour ahead. snap co-founder and ceo evan spiegel joins us in just a couple minutes later this hour another exclusive with the see receive of peloton we'll start with the veolatilit in the meme trade with gamestop. you know how percentages go. these aren't the actual numbers, if you drop 50% one day and you