>> the whole thing and i wanted to be there just in case something crazy happens >> i hear ya yeah, i thought i counted 56 actually, 56 bottles for the mountain dew commercial. that's what my son thought we tweeted it out. >> dom, good to see you. >> likewise. >> will, thank you for joining us today we appreciate it. >> pleasures a always. >> see you back here tomorrow, we'll see you on closing bell and the rest of you back here tomorrow right now it's time for "squawk on the street". good morning, welcome to "squawk on the street. i'm david faber along with jim cramer, carl will be joining us shortly. intra-day high, strong at the open, strong earnings and vaccine news and stimulus outweighs covid variants or inflation. the 30-year yield, it hit 2% and brent for oil is at 60 let's get to our road map this morning. it does start with the cooling trade volatility, stocks look to continue, as we said to rise,

following wall street's best week, last week, since november. plus, we're going to talk about tesla's bitcoin move the automaker buying 1.5 billion in cryptocurrency in that cryptocurrency and it does plan to accept it as payment for its products and we do have renewed concerns about covid, south africa halts astrazeneca's vaccine rollout. and president biden says herd immunity, well, it could be difficult to get to, before summer's end and jim, of course, i don't know where you want to start this morning. you know, we should point out when we talk covid, there is good news, which is case counts are way down hospitalizations are down. deaths lagging, unfortunately, and continue to be quite high. but there is a lot of concern about new variants, at the same time vaccinations are picking up pace >> look, i am very positive and a let of my information comes from dr. gottlieb who has been very good about the rollout. he didn't use the word glut, but he did say that we're going to be hard pressed to find more

people beyond 100 million, literally, in april, and who have already taken it, and i think that what he's saying is the clarion call, we better find a new way rather than the algos that were talked about today in the "the wall street journal" to get those vaccines to people once we have so many of them, so david, i know we can say that it's going to be with us for a long time. but i get my flu shot every year and i keep thinking why haven't they wiped out flu but they haven't i think it will be a form of flu. from the very beginning, literally a year ago, you said when we have therapeutic, when we have a mist and something to take care of yourself, this will become an illness, not a fatality, and something that is killing millions of people i think we're getting closer and closer to that but we keep losing the eye on the prize. we keep talking about a vaccine. we need to think about therapeutics >> there was a period at which i thought and many others perhaps believed this, you see the therapeutics prior to seeing the vaccines, but in fact the vaccine moved along at rapid speed. and we're thankful for that.

but those therapeutics will be there eventually, jim, and to your point, as this stays in the back ground, as this mutates to some extent, those actually may end up being stilt a very important line of defense. something you can take if in fact you get it if there is adequate testing around as well which we all hope will be the case, that will just immediately stop the symptoms, and/or the progression of any disease, and so that will be really important, and that will allow us to be back to normal as well. even when we do get back to closer to herd immunity. >> and when we spending time on it is, back to normal going to the mall simon properties, we should find out, right and back to normal traveling again? is back to normal say saying i'm going to go out to eat a lot of the ads, in the super bowl, going out to eat and trying to make it that restaurant does well i think the cost of making people feel confident to do to a restaurant will still be higher than what the traffic will bear. i do think uber's having it, if only because that's just a

phenomenon of people wanting to stay at home that we've learned about. and it's becoming engrained. one of the reasons why we know that uber's been terrific, and door dash, david, what a stock, and you know the founders, you know the founders and the money back there, it is making it is so it is a change in the way people feel about private equity and venture capital as well as the way people feel about spacs, obviously we have to get to that. >> we always have to talk spacs and so many deals being announced and door door of course, that has benefitted the likes of softbank, and looking through their slide presentation, and for some reason not coming up on this computer but upstairs and door dash a huge winner for the vision fund, some $8 billion or more, i believe. is what we're talking about and i want to make sure that i'm not, that i translated already from yen to dollars there. and has helped the vision fund, and really, to significant gains, and again, because of all of this capital markets activity, jim, that we're talking about, the valuations that we're seeing, on names such as doordash, and you can go through any, any number of other

ones, and in fact, vision fund, too, is benefitting from open door, remember that one? which is going public from a spac >> and so many others. and it does get us quickly to a speculative parts of this market to a certain extent and whether it is the reddit trade and keep our eyes on shares of gamestop as we always, do and/or amc and you see that wanda, may have registered so that they can potentially sell stock, and not clear ifthey have yet, but there it is. and then to spacs as you point out. so many out there that are both listing and then that are announcing their deals, and i mean you're bringing so many companies public, jim, you know, if we were having a wave of ipos of all sorts of different types of quality, we would be talking about it as well. >> this morning, looking at bolta, which is a spac that's merging with an outfit called tortoise and maybe the tortoise beats the hare

snpr merging and they're unique electric vehicle charging stations and there are now unique differentiated ev charging stations. >> the ev is fascinating because you have so much competition between so many of these companies that are getting ak success to capital that are going to be able to fund their business plan, but jim, there's always going to be winners and loser, the question is who is it going to be, is it going to be the best idea, the best science, the best execution and somebody bring all three of them together i don't know the answer but i don't know that they're all going to be the winners. >> this is "squawk box" this morning, they have 400 million in the game, which is more than some of the other guys in the game and that seemed compelling to me. david, we have a lot of companies that are involved with direct less ig, too, some of the enthusiasts out there love pallantir, ai, very good company, we don't know a lot about the financials yet, other than it came direct and it's

tripled but they made a deal with ibm and typically when you do deals with ibm, it's kind of a one minute bump because ibm likes to make deals but no, the enthusiasm has more, and it is the biggest gainer right now and another form of excitement or you could say speculation, because that deal, in the hands of xyz corp would mean very little xyz, let's say it was salesforce with a deal, and no, the people who like pallantir take this, and they just run with it. and i don't think when you try to do traditional analysis of the value of that deal, it will not produce that kind of return. it would not it doesn't matter. maybe the traditional analysis is upon us. >> it's a press release. >> a press release. >> it's a press release. >> it's a press release. >> they have a partnership consisting of ibm's hybrid cloud data platform with ai for business with pallantir's next generation platform for building

applications that's worth 10%, come on. >> david, it's an enthusiast stock. >> yes. >> in the same way we put up a graphic about a video game company. >> yes >> it's interesting, there are a lot of people who like pet smart today. i don't know if you have seen it wolf wolf is challenging chewy. >> yes. >> the person who really got gamestop going is a co-founder of chewy >> correct. >> so is that good or bad for gamestop, that wolf might be challenging chewy, when the person on the board that got gamestop going is from chewy >> i don't know. >> you don't >> i don't know. >> you don't know? >> i don't know if and why he has not -- >> mr. cohen, is that his name >> well, it's ezra. >> but what's so funny about this, is it's all one giant vast conspiracy, against the little guy. little guys, wake up, you're smarter than the big guys.

zoo go buy the conspiracy. buy the companies you like right? there is no big guy conspiracy here there's more information, it goes to wealthier people than not because they pay a lot of commission but is that information worth anymore? wouldn't you rather buy, i mean the information provide, does it provide a reason to buy gamestop wall street? >> say that again. somebody was talking in my ear. >> how is that person doing? >> when you think about gamestop it wasn't led by wall street it was led by the people and david, as i learned in college, the people united will never be defeated. >> janet yell-some thoughts i know on gamestop and reddit and we have the reddit ad that we saw on the super bowl. take a listen to yellen. >> the securities and exchange commission is working hard to assemble a report that gives us the facts, and when we have them, we can look at whether or

not there were issues that need to be addressed through new policy or regulations. we need to make sure the markets function efficiently, that investors are protected, and also that they understand the risks that they face when they engage in trading, and all of that will be reviewed. >> the risks that they face when they engage in trading, jim. >> what can i say? >> it's something you tried to explain as well. >> and i'm regarded as being a suit. >> this is a 180 captive. >> glad to see that. >> things that i like. >> i can't get close enough to touch your suit. >> i like things like education. i like informed investing. i like people doing a good job i like suitability david, i'm the definition of old hat. and none of those things fly, because those are all of the reasons people think i'm keeping them down. yeah i'm keeping them down. i also by the way, hill's toe, i

was successful in that game, they thought i was tweeting. >> we are talking about the super bowl ads the gm ad on ev, with will farrell. >> how about bruce >> springsteen? >> yes >> powerful. >> stay with us. we're right back e of the art technology, makes it brilliant. the visionary lexus nx. lease the 2021 nx 300 for $359 a month for thirty six months. experience amazing at your lexus dealer.

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welcome back before the break we were talking about some of the super bowl ads. whether it be ev, that gm is focused on, also of course, it gets us to tesla and bitcoin, we want to bring carl in, we've gotten some audio issues ironed out there. carl, i don't know if anything stood out to you from the game obviously the game itself was not particularly exciting after a while, though we kept waiting for mahomes to make his move it never happened. >> yeah, difficult for cbs, maybe from a ratings stand point, we will see how many people stayed up late, but the passtiche of the advertising community was definitely centered around ev, gm with the ad with will ferrell, and goes to norway because he finds out that norway is ahead of the u.s. and we have a brief bit of sound. >> did you know that norway sells way more electric cars per capita than the u.s. norway i won't stand for it

>> with gm's new battery, we're going to crush them. crush them. >> what's this >> it's my daughter's birthday i don't care grab an ev and beat me in norway. >> norway is beating us in evs meet me there in an hour. >> i can ride with you >> no. >> gm's battery is made for all types of vehicles. everyone can drive an ev >> okay, norway, listen up, you fish-loving, oh, this place is adorable >> it gets better from there we're going to get earnings this week, jim, from gm, and also, as we watch brent at 60, i know david mentioned at the top, jpm will host a call this morning about what they're arguing will be a massive underinvestment cycle in crude energy, on top of an oil super cycle and sort of the risks of massive

infrastructure under investment. >> and oil is at 60. the curb says five years from now it will be considerably lower. 48 back in november, when oil was much lower, the curb also indicated 48 so the forward market is not signaling this will happen and at unwhat point do the saudis say that we'll take the money and run. and mary barra is so committed to ending fossil fuel calls and i think you will say to yourself, tesla is going higher, ellis, and bitcoin, and mary barra will not be left behind, in the same way that jim farley would not be left behind at ford, and david, it is kind of a, an incredible moment, where you see short-term oil going up, and yet you have people at major companies, by the way, a major countries, we could make fun of, but that are so committed to getting rid of fossil fuel, long haul car, whatever, and a move

to green hydrogen, it is a clash of the titanss and i don't think it will get to 2030 with oil still climbing i think oil peaks. >> i do. >> you do? when you do speak to, when you speak to a mike worth, for example, who runs chevron, and/or any of the other ceos of the major oil company, they will tell you, listen, there is an expectation that that will occur over time, between now and let's call it 2040, but at the same time, jim, they'll still say the amount of money that was on cap ex this year was far below what was spent in 2013 when we were nowhere near, you know, what we're still consuming now, so even if we go like this, in terms of consumption, there's still not enough money being spent to buy new sources we're going to need it, or else, there's still going to be a big price tag attached to the commodity itself. >> not to disagree with you. by the way, the federal lands people keep asking, what is biden restricting? the federal lands that are drilled on are areas west of the permian basin. actually, in new mexico. so that itself is not going to

cause oil to go up or a lack of pipeline is very hard to build that could make it that more oil is trapped here. david, look, i think it's really going to come down to when we listen to mary barra talk about the fact that she is committed, saying a series of 2030 expectations, and whether we can get the batteries, david, one of the reasons why, and i hope to like gm, one of the reasons why we are so struggling to figure out, is how quick is this going to be, is that the alternative engine and the alternative batteries, we can't just turn on a dime, david. there may not be enough of the ingredients in batteries to make enough batteries so we're all very glad we have them gm has a very good battery operation. >> the question also become, carl, right, exactly, all of those batteries, all of the charging stations that are going to be need to put in, this is years to come, not to mention the power generation itself for all of the cars that are going to be not relying on the electricity, now relying on the electricity grid as opposed to pumping gasoline, it is going to be a fascinating transition.

we're watching it occur in the capital markets every day with the speculative nature of some of the names and for the companies that some will be the leaders and some will fall by the waywide, as we said earlier. >> their area not all going to win, david don't they all win >> i think to david's point, transitioning from gas stations to a complete reliance on the grid over the long time raises risks in not just investment in the infrastructure, and cyber issues as well, national security risks, so yes, it's a giant pivot. by the way, jim, it sort of brings us to what tesla said in the 10-k, not just about bitcoin, although that was the major news, but the notion that they said that micro chip demand in electronics, because of everybody buying ipads and pcs during covid is, now having an impact on them, and just as the chip shortage at large is having an impact on the industry in aggregate. >> i think ford had a great quarter but jim farley correctly

identifies 1.5 billion, 2 billion comes off. you can't buy the chips. the chips are in some ways being hoarded by the chinese they do not have just in time. we have spent a huge amount of time in our country having just in time inventory. make sure we don't, we take the chips the second we need them. and what's happened there, carl, is made it so if you have a just in case philosophy, which china has, you are getting all the chips you want it is going to hurt gm it is going to even hurt tesla it can make it but it is an 18-month start to finish and a lot of moves, with this country, it takes a long time to build them >> yeah, guy, jim mentioned some of those calls on wolf we got some other new coverage on stocks lie affirm we got some calls on target, denny's, viacom, estee lauder. las vegas sands. mgm. we will get to all of that when we come right back

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time for mad dash, as we get ready for an opening bell here on this monday you love es tay lauder >> yes, i do >> you are talking about estee lauder. >> because the ceo taught me so much, reported an amazing quarter and a lot of people looking for a short fall because a lot of people saying isn't this stuff sold in nordstrom's and macy's and that is such a small channel now because they have embraced tremendous direct to consumer around the world and unbelievable numbers in china, and eight firms today go out positive, one jpmorgan which had been a leading bear goes from sell to buy, i think this stock can easily, if you look at the average of the price targets, 305, i don't think it will have

a hard time getting there because it has become the favorite of people who want a trade about the opening, because when we open, we go to duty free, that's where a lot of these places are sold, and china open, and also david, because it is the zoom generation, the selfie generation and now the zoom generation and they talked on the call, they talk the on the show how much makeup you need on a zoom call. it's really flaws and all. and i don't know, david, when do you a zoom call, don't you find yourself looking kind of not faber-ish. i'm not found of zoom calls at all. as people know. >> and why have zoom calls replace a regular phone call why do you have to do zoom if you did a regular phone call previously. >> because you're a loser. >> and why do you have to schedule your phone call, why can't you call somebody and have them answer the darn phone believe it or not, it's the way people do it. >> i got to schedule calls now and then they got to be zoom calls and then as you said, i

got to put makeup on to add to the zoom calls >> you better put makeup on, david. >> just answer your phone when i call you. >> no makeup on, five people said i looked sicker than i ever looked, i am never doing that again. >> you look fine. >> thank you. >> good to have you back here in person. >> thank you. >> at least here opening bell coming up stay with us

that's the five-second reddit ad from the super bowl last night reading in quotes who knows, maybe you'll be the reason that finance textbooks have to add a chapter on tendies. we had a different view on the retail rebellion here and writing this morning, everything we confirmed from the very beginning the retail rebellion was a bit of a farce and the financial media bought into too much too readily.

>> i hate to disagree with art and i think the retail revolution is real and robinhood, 17 million people a day signed up, whether they're happy or not, they're there. reddit is a form of dissemination. is it a form that i like it's an enthusiast forum i don't have a problem with this i want more people in. and when more people get, in maybe there is a possibility that they find a tesla, maybe they find a pallantir as you mentioned and maybe they get involved in the short squeeze that they might not understand and we have to help educate but the more to me, the more the merry men, the more the merrier men and i won't change because we need more people in because they need to august meant their paycheck because they don't make enough money. >> but we're here to remind people that things at some points it do things do get irrational and rationality does move through, and those of us who lived in the late 90s

through the crash and plenty of people got hurt and then made money along the way and then got hurt and i don't know what ended up but the u.s. government had a lot more tax receipts as a lot of those >> a lot of companies failed >> yes. >> it's a lot. >> yes >> there's the opening bell, guys at the nasdaq, happy birthday. a celebration of its 50th anniversary. anita freedman, ringing the bell alongside former nasdaq ceos a public listing being celebrated here. what else, a spac. and we look at other news on the spac front, from the likes of danny mier, the journey had this piece about singer and elliot. >> i mean, listen, it goes on and on and let's look, david simon, from simon properties, and obviously, we have omar mishra, danny mier, a-rod, and every day, you just go on and

on gores six did their deal that's matterhorn. i know you're looking closely at that company. >> andrew talked about that. >> that was six or seven did the deal six did the deal seven -- >> i can't keep up, carl, is where it ends up, in terms of the plans for spacs to go public, and then the ones that are doing their deals, but jim, it comes back to this idea, we're going to have an awful lot of public companies out there that we're going to talk about for one day and lose sight of until perhaps to either the day that they fail or the day that they get acquired or news worthy happens or break through in battery technology that sends everything up. >> we have some good charts on cnbc.com which lists all of the 50, that where they are, and they are already, unfortunately, had to constantly update them, but you know what, i had a lightning rod on "mad money" and most of my questions that i get are about spacs and i constantly

try to review how much money does the sponsor put in, who are the people, and i'm getting defeated by the notion of the celebrity spac the person with the great brand name is someone people give money to and it's kinds of like they have a bank account to be able to do what they want carl, what i worry about is are there enough great companies to buy, because if there were, then why would all of these public companies be in there buying it's hard to believe there could be that many great ones. >> yeah, i mean this is where ari talked on our area about broadening your mind about the universe of potential cash flows that can be discounted and in his view, it could be a single person, a celebrity. >> no doubt. and you know, there are a lot of private companies out there that we perhaps were not as aware of. there are units of public companies that perhaps would also be something that could take, be taken public. through a spac and there have been a couple

done there will be more obviously there are also plenty in the portfolios of private equity firms so it becomes an exit and the same way an ipo would have been because essentially that's what we're talking about as we talk about amc shares, down, and to your point, jim, with all of these money chasing these deals and some questions about the timing and due diligence and how much time is being taken by some of the sponsors on doing their diligence, you certainly have to keep an eye on the quality of the transactions everybody's going to promote them out of the box. as they should and some are going to be great just like an indiana of any company potentially, with a very strong business model and the ability to execute will ultimately succeed and quite a few will ultimately not be particularly good. they're not all the same as we take a look at our post-deal. that gives you a sense by the way -- >> that's what i need to see that's good. >> 15 deals that have been done by spacs after they've announced the deal, okay then we also have the 50 that are just spacs that haven't

actually announced their deal, which in some ways is even more incredible why aren't they all trading at 10 is the question why are they all up? and obviously we talked a great deal about ccib being a poster child that has gone up enormously on the prospect of a potential transaction and in this case people think they know what deal it is going to be but so many move up for no real reason, other than perhaps confidence in the sponsor. >> well, i think you feeling, and carl, you probably do, i get calls probably every other day, should i do a spac, and it's a person who is a name brand, and the question is, welt, why not and i say why not, because when we started this street, and it came public in 1999, goldman, anthony noto, great banker, took a team around flying all over cities and what happens? the imagine team does not leave for ten days as they sell the deal ten days, business falls off

and they make these projections and 20, 30 broe -- projection, and the s.e.c. hates projection and the s.e.c. has a rigorous review and going back and forth, back and forth, and all of that is gone and i cannot believe that gary agai gansler is sayin will let this spac market be bigger than the regular market and i can't believe there are firms that aren't shut this down but two standards, the standard of spac and everything goes and the standard of the traditional offering where you can't really say much good at all it's all risk factors. so every spac, david, the reason why i think they trade above ten, when you read them, they're all going to the moon. and i mean, you know, when they do that, the moon, you see, stock, moon. >> i like that >> yeah, i do like that. >> emoji >> i like that a lot snap, good quarter kathy wood liked the quarter going to the moon. >> yes. >> you're right, jim, and you made this point as well.

the spacs obviously have to detail everything in their prospectus when they go public, but to your point it really is only about what they're hoping to accomplish. but when they actually announce the deal, they aren't as wedded to those numbers because those are just projections >> yes. >> and they aren't in the same, treated the same way, i guess, jim, is what it amounts to and so you can project things that you might not otherwise feel emboldened to do were it were an s-1 filing >> if you submit something to the s.e.c., you submit a document to the s.e.c., there are a group of very smart people who look things over and they come back and they say we think this is risky and we don't think you can do this or that and they're your bosses and you change and i'm sure the s.e.c. head is trying to figure out what the heck to do but the kind of things being done here and submitted a deal to the s.e.c., they are laughable if i made these claims that when i started the street, the s.e.c. would have called me and said listen, you're never coming public, ever ever because we're not going to allow

that we want to protect the people from what we think is overenthusiasm and you know, no one's protecting the people from these. which is why i think david's right. in 1999, they did get a little lax at the s.e.c., because there were so many deal, but at the same time, they knew that you could not make certain projections. david, this time, the s.e.c. must be looking, the professionals at the s.e.c. and saying we should be reviewing this people are going to get hurt right now, they're small enough, maybe not that much but they have a proprietary nature of trying to keep it so the public isn't hurt and that's nowhere. nowhere at all. >> and carl, speaking of that, amc share, they've been successful in selling stock and the question is whether some of the other shareholders are now taking advantage of this incredible move upward from let's call it two bucks. interesting story. i think it was the "new york post" detailing the moves that they made to keep the company out of bankruptcy and successfully so and buying time until something unexpected came

along, didn't it, carl, which is this move that allowed them to sell even more stock and perhaps allowed them now to have plenty of runway to get to that point where people are really going back to the movie theaters >> when? offering another 5.5 million shares and jim, record highs across the board. we should mention that that's without the help of apple today, and one of the big laggards is hyundai now says, jim, they're not currently in talks with that, with apple on that autonomous ev i mean there have been one report out of south korea that said this deal was going to get signed on the 17th of this month. it points to the opacity, i'm trying to read into what apple is trying to do on any front. >> apple fight club. and whenever you're an analyst covering a company that does a lot of business with apple, and it is frustrating, and you are never allowed to mention, and if there is a company in california, and if anyone squawked about this on the

korean side, it is a no go that's not how apple does business apple is about the customer. apple will announce a deal when they think the customer will get the best shake and the best product and not when the supplier says it maybe it was a gun jumping situation, but carl, tim cook stands for one thing, is that the customer satisfaction is the most important thing he does not stand for news releases he is not about putting out things until he is absolutely certain it is right so i think when this story unravels we will find out that perhaps hyundai was not as a certain respect as they should have been when dealing with apple >> confirmed overall, guys, a bit of a reopening point, jim, second time in a couple of weeks now we've seen disney lead the dow up to 185. followed by some oil cisco by the way, awfully close to an 18-month high. but you know, we got to downgrade at viacom today, i think it was over at ubs, on some challenging risk/reward but

disney is powering ahead. >> that may be a reaction to the endless paramount-plus ads >> they pushed that hard. >> it was tough enough to watch the game, you had to watch those ads. >> when you're last in streaming, you got to push it hard. >> whoo. >> and my daughter says, wait, they're going have sponge bob? >> all right >> disney is maybe, i have been saying disney and boeing, the two greatest reopening trades there are, disney is the place that needs crowd, needs lines, needs theaters opened, needs sports, obviously, sports are more fun when they're not cardboard figures, matthew mcconaughey, cardboard figure, excellent ad, he used to be a lincoln and now doritos. >> and look at disney on the power of direct to consumer. >> direct to consumer. >> and viacom has gotten swept up to a limited extent with some of the speculative fervor around large short positions. i mean that stock is still at up

43% year to date back to a $33 billion market value at viacom. almost respectable but we'll keep an eye on it. march 4th i think they're rolling out paramount plus dy want to get to something we didn't see too often which is a an overbid and jim probably knows more about these companies than i do, which i know very little and coherent, which go got a bid from a-few moments ago from a company called mks. it is an overbid because they're in a deal to be acquired by another company. and coherent, i got it halted, 240 bucks a share, 115 of cash and 07473 shares of mks for every share of coherent. that is a premium of the lumentum deal of 16% and we will see how coherent trades when it oppose, jim and at the same time, lumentum is expected to make a case, you guys have huge anti-trust risk and a board that will not want

to undertake, itly without any guarantees and they are the largest and most predominant players in the development of lasers used for scientific applications and certain micro electronic fabrication applications, jim and that is the line of defense, saying anti-trust anti-trust anti-trust and we'll see whether it works >> and these are companies that are laser but they're also very cutting edge when it comes to fiber. when it comes to lighting. and when we hear it, think about fiber, remember, david, we don't talk enough about 5g, we don't talk enough about what people can do to replace maybe one day the current system, with 5g. 5g obviously on the mind of a lot of the advertisers last night. but anything involving light, anything involving laser, always ends up being involved with telecommunications, and with the data center, and how people get information. so this is, you know, this deal, there's another deal, david, that is important, and i don't know if you saw the deal, a japanese company, 20% premium,

buying dialogue, an apple supplier, slight lighting, power management, audio, power conversion, these are, it is the consolidation here all started with lisa su, amd, buying xilinx trying to get that deal done, and then jessy wang trying to buy nvidia, trying to buy the big dog arm, and i think that's the one in your wheelhouse because you know arm is not going lightly. >> and arm part of that portfolio, at soft bank, carl, which also had a strong quarter on the back of significant gains of the vision fund, we talked about it earlier finally carl, as we send it back to you, keep an eye on the banks, maybe bob pisani will talk about them and very strong as yield does move up a bit. >> yes, all sectors green. energy is leading but banks aren't far behind. vix up a little bit here back above 21. record highs across the board. let's get to bob pisani. hey, bob. >> the bank index is doing well.

and the yield curve steepening and they the folks got a little concerned about inflation but banks one of the big movers this morning. s&p, new high. nasdaq a new high. russell 25000 a new high a global rally oil over 57. the highest level in a year. david referenced the banks the tkx had a great run the last couple of weeks. materials industrials. what is this the reflation trade. and consumer staples consistently lagging day in and day out the last couple of weeks and that's because investors have bought into the reopening story. and look at the market narratives traders are enamored with janet yellen she was on sunday talk shows go back to full employment if we go big, they believe the go big narrative they believe it's going to pass. virus infections are slowing the rollout is continuing. and i mentioned last week, q1 and q2 earnings estimates are rising that's the most important thing for the markets.

because they're buying in to the narrative that the analysts had been underestimating the strength of the recovery and the strength of the rollout. there are inflation worries that are out there. oil at a one-year high and people have been talking about the commodity inflation that we've been talking about and the 30-year bond bill went over 2% briefly. and the 10-year note, we're at the highest level since about march of last year 1.8% or so. so the inflation worries are there. but that narrative is not dominating the market right now. it's the rollout it's the reopening narrative that really is important this is a global rally i keep emphasizing we hit a 30-year high on the ny kay today, going back to -- nikkei, going back to 1990, folks. historic high in india, bombay, and historic high in germany as well it's not just the united states and emerging markets that have a very good move up as well. if you can see, when i see it's the reflation the stay at home stocks aren't as popular anymore and you can see this, again today, the amazons, electronic

arts, activision, zoom, they're not having the energy they had six or search months ago and that's evident again today in the trading situation. finally just want to note, we have briefly, carl mentioned, happy birthday nasdaq. it was february 8th, 1971, it was 50 years ago, nasdaq began operations that's quite a feat here you know, it was originally a quotation system you couldn't trade on nasdaq it was just a quote system and they, their main thing, they really helped lower the bid/ask spreads because all of this stuff was over-the-counter and it was people on telephones and the bid/ask was a mile wide. once you start being able to see it on a computer screen, which is what nasdaq did, and you couldn't trade, but you saw it on a computer screen, the bid/ask started to narrow. and that was a big contribution that nasdaq made, in 1998, they were trading online, remember the first one, traded online, but it is a big thing, and remember, you can buy the nasdaq, you can buy the etfs around it, several of them, and there they are, including the

qqq trust. guys, back to you. >> all right bob, thanks. as we go to break, take a look at how treasuries are feeling. the 10-year near a one-year high on the optimism surrounding the $1.9 trillion covid relief package. as we said earlier as well 30 year hovering around 2% and the german ten-year, a fresh five-month high. and the italian ten-year yield near one-month lows on the lopes around mario droge hoping to form a new government over tlnchs and a look at the dolla index, with record highs across the board at the open. don't go anywhere. dolla

the spac phenomenal it is spreading, p.spac dream and i enjoyed listening to it, jim. you may have, as well. he knows his stuff and there is a lot of name checks that's the right term, carl. i will go to you for our colleagues at "fast money" and other people in that so-called spac game. >> i was going to say, jim, is it toppy or the beginning of something new? >> it wasn't in the halftime show so, i don't know. >> give them time. >> well, ywe got another full year the weeknd pretty good. >> he ends on one of my favorite lines, of course he mentioned you as well take a listen. tesla over other♪ ♪ it amaze you how many evs are in favor ♪

♪ much respect to elon the trai blazer ♪ ♪ like david faber say i got a spac and a dream ♪ >> everybody's got a spac and a dream. every day we see evidence of that, don't we, jim? >> well, you see these people who are announcing now, remember what you are doing let's say you are a bank loan officer and the guy comes in and he is a fantastic name and says, look, i want $500,000. you know, there would be -- let's see your balance sheet no no what is your idea, david do you have a dream? if you get a dream, you get the half bill, right jimmy cho will give you a half bill. >> yeah. jimmy chill give you a half bill >> carl, i think it's too late to have a spac and a dream, but we can enjoy the rap >> yeah, i don't know. i mean, it's looking tempting at this point we will take a break as the s&p above 3,900 for the first time don't go away. at fidelity, you get personalized wealth planning

and unmatched overall value. together with a dedicated advisor, you'll make a plan that can adjust as your life changes, with access to tax-smart investing strategies that help you keep more of what you earn. and with brokerage accounts, you see what you'll pay before you trade. personalized advice. unmatched value. at fidelity, you can have both. ♪ more than this ♪

take a look at s&p laggards this morning has blo hasbro at the top of the list. increased interest in board games and toys due to the pandemic we will check in with brian

goldner on the quarter in the next hour of "squawk on the street." don't go away.

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insurance? get a quote in 3 minutes at easyaspie.com. let's get to jim and "stop trading." >> research still moving,

something target steve recommends hold the buy. part is because how much people love shipped, same-day, which i love, door and brian cornell has done incredible work there a great stock to own for opening or closing people are making too many decisions like hasbro, oh, that's a nesting stock target is doing really well. i think it's a great buy. >> yeah, the general point, jim, is target customers are more likely to use things like same-day e-commerce. >> it's so much fun. i mean, we do so much -- we order ship -- if i say, listen, guys, i need elmer's glue. i left my belt home once. a very nice belt thank you for ordering that. so we are on it every day. sometimes we do it to challenge them hey, could you send us some crayolas >> see what they are capable of? >> anything. >> that's going to make simon property interesting tonight. >> oh, boy david simon, we all know if

he -- he is -- he's voluble. tonight i have a very important announcement about trying to get people out of the hospital more importantly, people trying to survive there are people dying of covid. they have got something. i like -- you know, this -- david, you love this it's lidar we talk lidar today. a bunch of losers we are steve angle runs lindy, the gas company that you need for rockets that you need for dental, for industry, that you love lindy, i love it >> good to be back, lloyd. you know, that's shining. >> oh, thank you california good to have you back. thank you. >> thought it might be a "dumb and dumber" reference. jim, see you at 6:00, "mad money" 6:00 p.m. eastern time.

good monday morning, welcome to "squawk on the street. i'm carl quintanilla with david faber and morgan brennan the best week for stocks since november record highs across the board. the dow, s&p and nasdaq, s&p 3,900 for the first time as we watch earnings, stimulus and, of course, vaccines our roadmap begins with bitcoin hitting record levels after that surprise investment by tesla we will get you details. >> yeah, plus, covid stimulus and the ongoing challenge for states colorado governor joins us this hour. >> and hasbro, biggest laggard on the s&p, this despite beating analysts' estimates with earnings we will chat with brian gold centegoldner. we will start with the markets at this hour and for that we will get to our mike santoli. >> we have a low drama ratcheting higher. melt-ups raising the question as

to who is getting priced in here somewhere between pricing and plausible progress and perfection so one way to think about it, rule of thumb-wise, if you get to s&p 4,000 upside targets gets you to 4,000, less than 3% up here 20 times the consensus for 2022 s&p 500 earnings 20 years a year ahead of it. a year that doesn't start for 11 months yes, getting a little bit stretched. the key is that shake -out reset expectations it maybe brebuilt the wall of w. optimism very understandably is now consensus because of the early recovery forces, fiscal stimulus coming and the profit outlook looks good valuation getting stretched on a year-ahead basis stable since may because earnings forecasts are up. the silly stuff a lot of us are watching, whether it's 350 spacs out there, whether it is the meme stocks that get rolling, it's there

it looks frothy. that stuff can kind of roll for a long period of time and we have seen that, obviously. i think that's what we have to be careful about, looking at those things and saying, uh-huh, that must be the sign that some kind of a top is in right here. >> yeah, but, mike, you point out 20 times 22. >> yes. >> you know, i can hear the strategists that we'll bring or the investors saying look at the interest rate environment. that's justified although rates are moving up a little bit the banks have a lot of life to them. >> absolutely right. so the question is where is that equilibrium in terms of yields on the upside and whether that can continue to have people at least explain away high valuations whether or not it justifies it one way of looking at it and a lot of wall street does it is look at the yields it's as low as it's been in a few years. in other words, you are losing that cushion as rates go higher. of course, we will see if there is any moderation in the treasury yield because a lot of people are short treasuries

right now. >> yeah. that's interesting moves on that front. thanks despite heavy losses by hedge funds, most firms ended january in the green our leslie picker has a roundup of that. >> hedge funds are basically the tom brady of the investing world regardless of what team they play for, how many super bowls they have been to, their age, they just find a way to win under pressure this, of course, coming from a very sad chiefs fan this morning. but in all seriousness, that whole narrative of the little guy beating out the big guys in january over gamestop, well, it's gotten a little muddied in recent days. new data shows that hedge funds actually posted gains for the month. on average they were you were 0.9% the bigger funds fared even better with the asset weighted average indicating returns of 3.4% for the month hedge funds also bested the s&p 500 and a widely used bond index. but the disparities were very

wide during the month. the winners won big. the losers faced very significant losses with the bottom down nearly 8% on average, the top up 11.6%. melvin capital the poster child of losses in the whole gamestop saga with 53% declines for january thanks to those bet against gamestop and other names. another fund took the opposite side of that trade and profited $700 million the latest data just a reminder that the hedge fund industry is not monolithic the industry has over 9,000 funds, $3.6 trillion in assets some of them suffered and some of them did well, guys. >> winners and losers. once again showing that as so many things in life, it's not black and white but shades of gray thank you. tesla is making a surprise investment in bitcoin. our phil lebeau with more. >> this is something that has

been rumored on wall street for the last couple of weeks and then this morning in a 10k filing tesla bought $1.5 billion in bitcoin look at shares of tesla. you might be saying, okay, $1.5 billion in tesla -- or in bitcoin. what does that work out in terms of how much cash they have on hand their regulatory filing, they said they may accept bitcoin as a form of payment if somebody wants to by a tesla model s using bitcoin is a possibility in terms of the cash position, it had $19.4 billion in cash you take out 1.5 billion of bitcoin or spent on bitcoin, you are looking at 8% of its cash position, cash and securities position that would not be tied up with bitcoin. as we mentioned, this is something that has been rumored for some time on wall street elon musk himself, if you look at some of his previous tweets, he tweeted, bitcoin is my safe word back on december 20th.

remember this? remember when he changed his twitter profile on january 29th. what you may be hard to see there, we circled it, he put the bitcoin symbol on his twitter feed it was there for a number of days one other chart we want to show you. tesla versus general motors. why are we showing you these stocks general motors will be reporting its earnings on wednesday. it would be curious to see what kind of questions the ceo gets about whether or not general motors has ever thought about accepting bitcoin or investing in bitcoin not sure she will say much on the conference call if that question was posed to her. guys, this is one more case where elon musk is going one direction whether i guarantee almost every executive in the automotive industry is saying, really he has shown time again he and tesla will do things others may not think are the smartest things in the world to do. and they have worked out in the past guys, back to you.

>> all right phil, thank you. phil lebeau talking some ses la. >> hasbro beat on the top of the bottom line, the company gets a boost from the pandemic-related interest in toys and games hasbro's chairman and ceo brian goldner joins us in a cnbc exclusive. thanks for being with us. >> good morning, carl. >> the quarter and the full year, i mean, everything from net to margins, e-commerce up 43 for the null year, yet you are one of many companies pressing against worries about deceleration as we come out of this pandemic. what is the best answer to that? >> well, we really have seen a continued interest in consumers around the world for our gaming business, which was up double digits it's up double digits year to date in january. our toy business you look at our nerf brand that grew in the fourth quarter and for the full year in the united states our u.s. business was up 16% in the fourth quarter and as we enter the new year we

are seeing a lot of real interest from consumers in gaming and our play-doh business and transformers and so many brands in addition, we got back on track with producing our live-action television and film, our e-1 unit up in the fourth quarter, and our animation has been going on unabated, being produced throughout the entire pandemic so we have a lot of new content coming there for pep the pig, our new my little pony full-length cbi film coming. so i would say as we look at consumers, they are very interested in hasbro and the categories that we are driving >> is it too simplistic to argue if there is a slowdown in gaming as people get outdoors a little bit more as we get into the summer, that it will be offset by tv, film, entertainment >> i think there are a couple of things going on. we have a robust portfolio we have a gaming business that stands into the adult audiences,

with lifestyle gaming fromdunges and gragging they are playing that 24/7, 12 months a year. we are launching new initiatives there. we expect that to gather, tracking towards doubling in size over this last few year period it's on track to double by 2023 from where it was just a few years ago. having said that, you're right there are other categories that people are also playing. we saw a lot of pickup of center of as parents and kids wanted to get outside and play more actively we have seen a lot of pickup for play-doh, because, again, the creative milestones and that creative play was a great break. and yet really valuable play as parents and kids were looking for ways to allow them to have some time to just play and to be themselves and then, of course, the games business it's continued to perform quite

well through last year i would say that, yes, tv and film is an area that we expect to grow. in fact, this morning with our analysts we said we expect e 1 to get back on track and revenues could look like 2019 revenues, about 1.2 billion, and right now our bookings look quite good we have a lot of new ip and increasingly they are developing great new stories and scripted television, film and unscripted television around hasbro irp. >> i can't say i am surprised that magic the gathering is doubling in size makes she laugh a little bit i want to dig into the production piece of this, the media piece of this a little bit more. i realize that you are seeing a rebound there. given the fat that we have seen proliferation in streaming services, what we have seen in terms of just the pain at the box office, as we get to a pre-pandemic normal or

post-pandemic normal, if you will, what is that going to mean in terms of your business model for some of those media entities and franchises i mean, is the box office ever going to be the same again >> i think it comes back i think it's just a matter of time we have seen in other territories where they have had more control around the pandemic in japan, the box office is quite robust in china we see a return to the box office i think we will see that here in the united states. the question is timing what's been great for our business is that stream content now being enjoyed by so many people has really hit a tipping point and that tipping point means that you have tens of millions of people watching a piece of content over a given early period of time that allows us to eventize towards or retailers helping us to bring play patterns to life, toys and games, consumer products to life across a number of dimensions whether it's a kids property or adult property so what we're seeing with "the mandalorian," for example, from

disney+, incredible sales growth in "star wars," 70% growth year on year. yes, it's the child, but a whole array of collector-oriented products, kids lightsabers, vehicle line that our kids love. there will be a combination of stream content and film content, and you are also going to see a change of the windowing. we are hearing a lot about that where there will be shorter windows for film content and then the opportunity for stream content or even a simultaneous launch. >> as you look to build out mor franchises, launch more products, how crucial are the millennials to that scenario i mean, so many of the names that stand out and have had strength are properties that i myself grew up with and now, as a millennial mom and passing on to my kids. >> that's exactly right. the thing about hasbro's brands, it's always about getting new story and character out because millennials wanted to share

their veexperiences with their kids but it had to be done in a contemporary way that resonated with the kids. it couldn't be done in an antiquated matter. we started to do that with the games business and revved up ga game play. we are seeing the acceleration of game playing. we have given them the opportunity to play magic arena online that's really helped as we look at d and d and they are able to play simultaneously in an online digital environment as well as face to face, again that helps so it's all about recognizing where your consumers are, where the audiences are and ensuring that parents can give the best possible experience to their kids, that their kids will also fully enjoy. that's really the expertise that so many people at the company have. >> brian, it's david when we have you on you are very articulate and sort of delineating all the benefits for the company. i am curious, are you frustrated with the stock price

i look back. you are nowhere near the highs you saw, let's call it, mid to kind of late 2019. >> you know, look, i think tha what we have done over time is focus on our performance if you look at the performance we just turned in in a pandemic, the team did an absolutely amazing job. we ended the year with more cash on the balance sheet than almost any time in our history at 1.45 billion we prepaid some debt we improved our operating profit margin we saw a growth in the u.s. business to 16% in growth in our games business more than 20% so i feel like we take care of our performance, take care of our stakeholders and employees, and the stock price will take care of itself >> finally, brian, we have talked in the past about the concentration of manufacturing capacity in china. we had the secretary of state talk to the chinese over the weekend, says they are going to be held accountable for their

abuses are you still on a path to diversify away from china? where does that stand right now? >> yeah, no, great question. we are standing at the end of 2020, 55% of production is now out of china so that's a major move for us over a number of years we were in the 90% range five or six years ago. and we think that it's a pretty good balance geographic footprint as we speak. lots of new production in other territories. but i have to remind you, more than 20% of what we make for the u.s., we're making in the u.s., whether it's magic the gathering trading cards or our games business it's up in massachusetts we do this through third-party partners but it's really heartening when we are able to make play-doh and games and magic the gathering cards all here in the u.s., and our opportunity is to continue to enhance our footprint here in the u.s. and it just comes through great partnership.

people when run factories when can help us make a high-quality product and we are certainly looking for that >> brian, appreciate the time as always good look inside the quarter thanks. >> thanks, guys. >> well, later this hour, colorado governor jared polis is going to join us we will talk about stimulus, the covid virus, a lot more to talk to him about one part of a great lineup ahead. don't miss any of it stay with us turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪♪ hey, our worker's comp insurance is expiring. should i just renew

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our next guest celebrating black history month by donating $200,000 to historically black colleges and universities. susanne shank joins us now nice to have you this morning. first off, why did you give the money? >> great thank you so much for having me on this morning. you know, our firm did pretty well in 2020 at the end of the year we decided to give focus to our philanthropic effort by forming a foundation we thought in honor of black history month that we wanted our first contributions from the foundation to be given in honor of educational institutions like spellman and howard, the nation's top ranked historically black colleges. >> all right well, i am sure they were very happy to receive it. let's talk markets as we take a look at the broader averages this morning, i am curious what are your thoughts

as we find ourselves adds all-time highs on the s&p? >> yes well, these are remarkable results. given what we are facing, i think everyone is strongly anticipating a very substantial stimulus package as you know, i spend a lot of my time in the muni market. $3.8 trillion market that has really also been on fire in terms of really achieving record lows for municipal issuers, and we haven't seen these kinds of ratios with munis and treasuries being this low ever, and we still are seeing tons of interest by investors because there has been so little supply in the market. >> i want to dig into that a little more. it's morgan. the ratios between munis and treasuries, why is it so low anticipation of more stimulus? >> yeah, i think the market has

really baked in anticipation of more stimulus. we also i think are seeing -- there is an expectation at some point, taxes, you know, tax rates may change we've seen 13 straight weeks of municipal inflows to mutual funds as well. and just very, very low supply i think there may come a point where investors take a little pause, but we saw last week the city of detroit bring $175 million deal. the city has been on a, you know, very aggressive comeback mode, as you all know. but everyone is struggling with the pandemic well, the transaction that came last week, it was half of what they achieved when they came to market in october, and had over 60 investors place orders. and many maturities, 20 times

over subscribed. >> it's amazing. i think about the mta and how much capital they have been able to raise the past year in the midst of the pandemic of the news of the day for a minute, i mean, when we talk about diversity and inclusion, you have been putting your money where your mouth is for some time i realize we have a long way to go and the conversation is being had, the donations are being made for a reason, but what do you think, i guess, longer term is it going to take for us as a society to get past identifying institutions or companies or people as female-led or minority-owned, et cetera? >> well, we have a ton of work to do. we saw the financial services industry go backwards after the last financial crisis, and, you know, my hope is that i'm really excited. the first time in 33 years that everyone is talking about this issue and corporations are really trying to make impactful change i mean, we really have to worry

about pipeline and that's why we're focusing these gifts on two institutions that have a history of graduating top black leaders leaders who should be leading corporations today we have only one black woman ceo of a fortune 500 country, ros brewer, who happens to be a spellman grad. i think we just really need to make sure we are sponsoring blacks within these corporations so that there is a pathway to the top. >> it's a good point, suzanne. there were reports over the weekend, looking at the long-term, i'm talking multi-decade impact on school closures as a result of the pandemic, and the amount of, say, math and science and language learning that students are not getting, and we will see how much that costs us in the years to come. but i just noticed this morning that new york city is going to be opening some middle schools that have been closed since

november i wonder how much you are worried about deep pipeline education and sort of grooming these leaders on a diverse front in the next decade. >> i am extremely concerned about it education set me on my trajectory and career. we know that it's so critically important for our young people to get back to school. we can just only hope this vaccine rollout accelerates and that we can get back to the work we really have to do a lot as a country to keep pace with what other countries are doing in the area of education. >> suzanne, finally, to come back to munis, i think some people would be surprised that they have held up as well as they have given the potential budget dev is it's in certain sta states if for some reason states and municipalities do not get the aid that they are expecting from the $1.9 trillion bill potentially working through

congress, does the muni market take a bit of a fall >> i really don't see any scenario where we would not have direct aid to state and local governments right now. i don't know any municipal official, republican or democrat, who doesn't think it's worthwhile to do, at the state and local defilevel. i hope our federal leaders acknowledge that most state and local governments had built up rainy day funds and reserves post the financial crisis unfortunately, they had to draw down on some of those to balance budgets, also furlough employees and cut costs where necessary. who do we expect to really help us with the rollout if we don't provide aid to state and local governments? it's critical that it occurs we are keeping a close on it suzanne, thank you. >> thank you so much >> now time for "etf spotlight." a look at the vanguard

communications services, ticker vox. up 32% this year and moving today alongside core holdings amc. that stock making news again this morning saying in an s.e.c. filing that majority shareholder wanda group had executed a share conversion that would allow the china-based company to sell shares and capitalize on the recent rise of the stock we don't know whether that company actually did or not because the filing doesn't say how many shares were convertrd or if any were sold. next on "squawk on the street," we are going to talk the rise of retail trader robinhood competitor, not really a competitor, trade web markets. "squawk on the street" is back in two stay with us

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here is your cnbc covid update british prime minister boris johnson is defending the astrazeneca covid vaccine developed in a partnership with britain's oxford university. south africa put it on hold

after a study found minimal protection against mild and moderate cases johnson told reporters this morning he has confidence in the astrazeneca shot and the vaccine made by pfizer. >> both the vaccines that we are currently using are effective in, as i say, in stopping serious disease and death. we also think in particular in the case of the oxford/astrazeneca vaccine, that there is good evidence that it is stopping transmission as well. >> pfizer expects to speed up production of its vaccine substantially going from 110 days to make a batch to 60 days. as production increases, it becomes more efficient so far more than 31 million americans have received at least one dose of a vaccine. confirmed u.s. cases for pandemic are now above 27 million with more than 463,000 deaths "squawk on the street" continues after this

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the securities and exchange commission is working hard to assemble a report that gives us the facts, and when we have them we can look at whether or not there were issues that need to be addressed through new policy or regulations we need to make sure the markets function efficiently, that investors are protected, and also that they understand the risks that they face when they engage in trading. and all of that will be reviewed. >> that was treasury secretary janet yellen on cnn yesterday talking about regulation around those high-flying reddit changes. our next guest saying that will continue when the pandemic is over tradeweb ceo lee oleski. thanks for being with us today i want your reaction to treasury secretary janet yellen i realize she is talking about

the reddit phenomenon, which is stocks and equities, not the market, that tradeweb focuses, tradeweb is focused on fixed income, but it sparked this broader discussion and focus around, i think, market structure, settlements, payment for order flows, volatility, which we have seen in the treasury market in recent weeks. how do you see it? what are why you are thoughts? >> tradeweb is not a public exchange and we are more in the fixed income markets it's not as directly relevant for us as wiell we are in the institutional space, not in the retail space but the need for fair and orderly markets is critical for our markets in general, and, of course, for tradeweb so we will have to see i think it makes a lot of sense to spend some time figuring out what happened here and decide whether or not there are ways to improve things. >> do you think there will be changes to, for example, settlements that can take hours,

if not days, to be finalized there has been a lot of talk about things like distributed ledger and blockchain being adopted. is that something you would expect to see at least in fixed income >> well, fixed income already has a much shorter settlement cycle than the equity markets. so it's a considerable difference there but, of course, i think improving the settlement cycle would be a positive step there is a lot of factors that go into that it's a lot of different systems that are involved and i think it's a complex thing but, sure, it should be looked at. >> let's talk about tradeweb specifically 2020 was a banner year you reported earnings last week, and what's perhaps even more amazing is by at least one metric the first month in 2021 you have already dashed some of those records, specifically average daily volume, which in january was a record $1 trillion. what's fueling the surge how sustainable is it? >> well, yeah. tradeweb had a terrific year

in general, we have had great momentum in the business in general, and i think that that has been fueled by a couple of factors. you know, of course, there is more electronfication in general, and that's just a fundamental thing that has been happening, the advantages to our business in addition to that, fixed income markets, we have seen a huge surge of debt issuance. so a lot more government bonds, a lot more corporate bonds that are outstanding, and then on top of that we also had the remote work environment, which further helped the electronfication of things people are working from home in a remote environment and electronic execution and the data that they received from that allows them to do their jobs more efficiently. >> when we talk about the electronfication, i know we have had this conversation before, that you have seen in fixed income and what covid did to accelerate those trends, how

much bigger, greater is the runway for adoption ahead for a company like tradeweb right now? >> many of our markets are still in sort of middle innings of electronfication even markets as advanced as the treasury market, 50% or so electronics. there is a ways to go in treasuries the corporate bond markets have seen a huge acceleration in the last year. that is still 35%, 40% depending where you are on the globe so there is a lot of runway here over the next several years for considerably more digitization in the fixed income markets. >> finally, lee, you know, talking about -- i guess we'll call it scrutiny of the industry at large it's one thing to have yellen or gary gensler give a sound bite on the weekend shows it's another to have congress people, representatives on the hill start to weigh into this. i wonder how you would sort of characterize, a, their understanding ever the dynamics

in play, and then, b, their appetite to do something about it slew legislation. >> well, carl, i have been doing this a while unfortunately, i have been through this a few times back in the '08-09 crisis and dodd-frank and the regulators, they did an incrediblyin-depth job of gaining information about the markets and what to do in order to make the markets safer and function more smoothly and so in a number of those things that came out of that period of time have really enhanced the markets i expect we will be going through another review of the markets with a different lens. the environment has changed, and i think, you know, it's something that we will be involved in and we'll pay attention to it is absolutely critical for our markets to be fair that is number one the most important thing. >> yeah. you certainly have been keeping

busy as well, recent acquisition of a business from nasdaq. we look forward speaking to you again in the future and seeing how all of this, both in terms of the industry trends and also what we are seeing in, for example, the treasury market, how that shakes out this year. lee, thanks for being with us. >> thank you. well, as we head to break, take a look at shares of discovery over the last five years. and then, in particular, hone in on, well, what is that the last five weeks or so? yeah, five years, 64%. how about this since the beginning. year, 42%. maybe you were lucky to think maybe their direct to consumer strategy will work, maybe advertising is coming back, maybe the stock got beat up too much last year again, up 42% so far and it's only, what, february 8th, right? we'll be right back. (it's a skirt... and shorts) the world loves a hybrid. so do businesses.

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. welcome back to "squawk on the street." i'm frank holland. stocks rising to fresh record levels once again with the dow and the s&p on pace for a sixth straight day of gains. energy, materials and financials among the leaders this morning utilities and real estate the only lower digging into energy right now, up about 3% this morning adding to last week's trading in the oil and gas exploration etf, the xop, that jumped over 4% the top performing component kpleen energy fuels soaring 30% after the company signed a multi-year contract. the nation's largest transit bus fleet. back to you guys >> frank, thanks. when we come back, the governor of colorado will be joining us we will talk some stimulus,

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the president is really committed to he wants to make sure that all of the needs of the american people are addressed it's important to do, to extend unemployment insurance it's important to have enough money to distribute the vaccine, but there are many more needs out there. and he wants a package that addresses rental assistance so people have roofs over their head, food that they have enough to eat, and the full range of problems facing americans. >> that's the tresh secretary on cnn sunday talking about a stimulus package joining us with more on the needs of various states is the governor of colorado, jared polis. governor, welcome back good to have you again. >> always a pleasure

>> listening to yellen and then reading the journal this morning, they have got this piece about how state budgets in many cases are nowhere near as bad as they thought they were going to about be last march and colorado is one of them. how dire is the need right now >> if you are talking about the state and local agencies, think i it's a really locally directed stimulus so in colorado we were able to do a one-time $375 payment to people who had experienced unemployment during that gap federally before that second bill came. we are looking at using some of these one-time funds on shovel-ready projects, tax relief, getting folks back to work i absolutely think that rather than -- there is room for a one size fits all. i'm supportive of the one-time payments to folks, but letting local and state governments invest in infrastructure that matters and build productivity for the long term. >> i have been looking at some covid trends state by state.

obviously, they are better nationwide, but colorado's caseload has really improved over the last several weeks. can you talk about what's happened >> yeah. coloradans are doing their part, wearing masks, avoiding social gatherings when they can people are enjoyingenjoying the outdoors and it's safe and social distanced, skiing and boarding and hiking and all the wonderful things colorado offers in its areas you need to be cautious and careful as you go into town and go out to eat. >> governor, you talk about potential stimulus and infrastructure i wonder, though, colorado and particularly the denver area seems to be a beneficiary of the trends we've seen, doesn't it? a number of turnpikes perhaps moving there and the ability of workforces to be more mobile denver and your lower tax rate seems to be a beneficiary. is that is not the case? >> we invite colorado companies to continue moving to colorado we think we have a lot to offer

over other states. we have a great quality of life, access to amazing wild area, winter, summer, fall, spring recreation and we're also on the cutting edge in terms of education, higher ed all the way from preschool through 12th grade. a big part of my focus is getting full-day kindergarten and then the voters passed the 67% ballot initiative that starts free preschool starting in 2023. >> governor polis, i want to go back to shovel ready investments and infrastructure your economic policies within covid and laying the groundwork have put colorado in a strong position my home state had a budget deficit before covid that's just been exacerbated in terms of the stimulus if we were to see a chunk of that go specifically to state and local governments, are you saying that because you don't have a deficit

you're in a good position fiscally that's where you would put the money to work if it were to happen, or are you saying something else >> yes, infrastructure is part of it. we view it as a one-time stimulus, not ongoing. maybe it's usable over two years. as part of our stimulus proposal infrastructure is a big piece of it tax relief for hard-hit businesses, child care, innovation in our schools and making sure we can redevelop and improve some of our downtown areas and revitalize our downtown areas >> although the biden administration is talking of following this up with a big infrastructure bill. you should it be one or the other or do we need and have room to do both? >> it is to meet local needs in colorado that's infrastructure in new york that might mean balancing the budget

another state might mean education. where we have the gap is the infrastructure side. schools are whole but what we really need is jobs, shovel ready projects we want to add more state parks. that's important for our tourism economy and the quality of life and local residents. we hope to add additional state parks with one-time funds as available as well. >> governor, you talk to people who have lived in, say, austin or nashville for a long time and they're seeing all these people move in and the highway construction and the crowded airports and they say the tax base as it is now can't sustain it is there a similar story in denver or boulder where there's been a lot of inflow >> yes so this one-time investment we already have some ability to do and if there's another stimulus

bill will have more to do because colorado, like many states, and i don't know how they do it in tennessee, but i'll define the problem for you. with dwindling revenue source, it's the reasonable proxy for a user fee but what's happened and will continue to happen is cars are getting more miles per gallon and there's more and more electric vehicles. so if you have cars that are more fuel efficient and not buying as much gas, it's a wonderful thing. then the question comes how do you pay for the roads? you need to modernize in all 50 states >> governor, i'm curious it looks like in terms of a peak in colorado for covid case that is happened in november and there was another smaller peak around the holidays. easing some of the restrictions in place right now do you believe the worst is past as you continue to roll out vaccines?

>> it's really a race against the clock, right, with all the variants and the spread, there could be a third wave. i think the third wave, if it occurs, and i hope it doesn't, would be different than the other two because we'll have already protected our most vulnerable our goal is protecting 70% of those 75 and up. that's about 75% of the deaths are people over aged 70. that still leaves 25% and a threat for people of all ages. we lost an 18-year-old two weeks ago. it changes the character but doesn't end the pandemic, just the urgent phase of the pandemic >> we do wish coloradans everywhere all the best obviously being a native myself, we hope to talk to you again soon >> always a pleasure >> governor jared polis of colorado

david, a couple of stocks to watch as we close out the hour twitter, seven-year high we'll get earnings not too long from now i'm thinking of the down grades in november where they argued former president trump was going to impact engagement but that will take you back to i guess 2005 >> i did not note that i've been following shares of softbank remember everyone was concerned about the vision fund and some of the poor investments that company had made no longer, right, carl, between doordash and uber, unrealized gains have been significant. they're already talking about cumulative returns of $114 billion. >> and i know deirdre bosa is keeping an eye on that company as well and i think some of the

flashiness of the presentation which i believe included nutcracker music as well >> i'm also keeping an eye on a couple of smaller names, cubic company, which is surging right now. it's a deal evergreen coast capital to acquire for $70 a share. about $2.8 billion i'm keeping an eye on it because it's both infrastructure or transportation and defense tech and veritas has been very busy lately we spoke to their ceo who tort northrop grumman's i.t. business over a couple weeks ago and then, of course, is taking another company private. more activity in that space, carl >> there's a few movers today. interesting. coming up next on "squawk alley" we'll talk another mover, bitcoin, on this tesla 10k where they say they've invested a billion and a half into the currency hits a record high

today of 44k we'll look at that and some other tech movers of the day when "squawk all" ar ia up ominutes.n

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