reopenings happening across the country. that means growth is going to be accelerated. >> jim paulson, got to thank you. we have to hand this off to our friends at "squawk on the street." we appreciate it always good to see you make sure everybody joins us tomorrow, "squawk on the street" begins right now good tuesday morning welcome to "squawk on the street." stocks are looking to take a breather after six days higher longest streak since august. we're coming off closing highs for all the major arngs including the russell. a road map begins with a pause to the record rally. all three major indices edging lower ahead of the opening after setting fresh highs yesterday. >> plus we're watching the bitcoin surge. fresh highs again. this boosted by tesla's investment and how about oil?

posting the highest closing price in 13 months while investor interests, of course, in ev-related stocks, well, that continues, carl, to soar as well >> yeah. speaking of soaring, broad discussion this morning about the levels we're at and whether or not we are in some type of a bubble you heard sam zel on squawk earlier this morning gary cohn a couple moments ago tweeting we need to be careful with handing out money that is not stimyoulative. how much of this is on your radar. >> i think the different packages people are talking about, some are about giving a giant of that money to everybody and some are targeted. i prefer targeted. i do think gary cohn has a spac going. if you want to know where i think the excesses are, it's going to be in spaces. i'm not willing to call top on spacs, but it does matter. david talked about oil this polar blast is making it so natural gas is having a lift the analysts want to get behind

this my sources indicate that rbn energy, a couple others, that the saud is will turn the tap back on if it goes too much above 60 the real reasons why oil went up is people are worried biden won't let people drill as much, but also the saudis have said drill baby, drill, but if they cap it, there won't be that. i don't think how long we can necessarily with an opening expect oil will continue to climb if the saudis aren't on board. >> meanwhile, exxon and chevron, exxon in particular, has soared. and it's been funny. energy, of course, the worst performing sector along with the banks last year. both have really joan significant signs of life. since the election, actually a lot of it is linked to crude ex who has moved the stock some change in board

competition, potentially more to come changes in capital allegation in cap ex they would argue even with the rise of ev, there is still going to be a need on this planet for significant amounts of oil, and the industry noz not investing anywhere near what it did in 2013 which might be the same levels as 2040 when every road on the car was an ev >> you're right. there was a tremendous uplift in the amount of oil from the permian, and the drilling rates have slowed down in mexico, it was the excess, but the permian containers to pump, you get a notice and they recommend diamondback symbol faang, and talk about how they'll complete their balance sheet. chevron has been underperforming. exxon can continue to pay the dividend if they have a carbon capture, they have less of a problem with

carbon buy oxide when you have a president that wants to drill in amwar, demand goes down. when a president is committed to ev, next we'll see places we're drilling that will be cut back it makes sense oil can go up under biden, but it will not make sense if the saudis say we don't want america back in they controlled it before. they can control it again. >> huh what about, jim, i mean, just as an example, governor cuomo of new york is going to reopen indoor dining, limited capacity. a little ahead of schedule coming this friday we have companies like lv m h tell, employees at tiffany saying we want you back in the office on monday >> i wish we had everybody vaccinated my mexican bar, i'm -- when you have tents you're eating in, the

buildup in a tent is very bad. it tends to bounce off the roof and come to your plate there's bad science calling for openings right now good science says if you can add ventilation in the winter and measure carbon dioxide, then you can feel safer but there's been nothing to make restaurants safer and there's also not a lot of restaurant police to tell you you have 25%. i will not be going to a restaurant until i feel that more people are vaccinated >> but you're going to have been vaccinated you still wouldn't go if you're vaccinated >> no. i won't, because my wife won't be >> got it. >> i get my second vaccine tomorrow, moderna. some people tell me the moderna has a particular after effect that causes you to be achy, short-term elevation in temperature. but i'm never going to miss that appointment. you get your appointment, you get it >> as of tomorrow you will be double vaccinated. >> no 12 days. >> meanwhile, to the overall

point, i think you heard jim paulson talking about it as well there is a lot of hope that we are getting back to work as carl just put it as well. i mean, the vaccine supply ramp you mentioned, we averaged about 1.5 million vaccinations a day, i think, over the last week. we know there's a lot more supply coming on new york, for example, again, we talk about it because that's what we're familiar with, is going to phase 2 a lot more people going to be potentially vaccinated under that many below 65. any number of different conditions including being somewhat obese is getting you an appointment. this is happening. the pace of vaccine rollout is picking up hospitalizations are coming down because a lot of elderly people have already been vaccinated cases coming down. i think we're below 100,000. that's good news and that seems to be adding to some of the things we're watching not today with the s&p looking

like we'll open down, but generally in the market, not to mention the prospect of enormous stimulus with a lot of people getting $1400 checks >> but at the same time, the new variants, some of the vaccines are better on the variants than others i don't like the stories it says it's a foot race between the vaccine and the variants some of the vaccinations don't have the great efficacy. i want j&j to be approved as fast as possible their ability to ramp up, and it does keep people from dying. i had a company on last night, very small and speculative that has a pill that makes it more likely that you will not die if you get on a respirator. right now the standard of care is a very bad one. steroids and remdesivir. many people are still dying in the hospital if we want people not to go to the hospital, that's testing but the government chose an expensive test at home there's inexpensive tests they

could use that they did not. we need to discover people in the first two days when they're asymptomatic that's the principal way it's transmitted. and get people when they're in the hospital out that's regeneron the stock has been not that good, and then when you're in the hospital you need things like this, a pill that gets you out. there are a lot of stages i like in russia they came up with a good method they're giving to everybody that's shining i'm getting that from a new yorker piece that explains the russian ways of doing it versus us >> yeah. it was a good piece you mentioned last week. that's worth reading walgreens and uber today partnering to start providing free rides to vaccination sites. so to david's point, and to dr. gottlieb's point, maybe when march comes we're dealing with a surplus. as for the markets, a little discussion today about this note out of citi about a lingering

short squeeze. 10 million unwound last week, but another 21 billion still in place. still at a loss. they think it could get the markets elevated for at least the next couple weeks. >> i think there's great seasonal work that says this is a good time. i also think that the stimulus ads to it if he gets something like that. i just think that when we talk about shorts and david, you were going over something i wanted to ask you about. >> sure. >> last week, the idea that we have the figures which show how much stock is shorted. and you tended to think that perhaps they could be overinflated i think that you recommend stocks because business is good. i don't want to have the alternative research always be you want to recommend a stock because there is a huge short position in bed bath and beyond. we don't know when it unwinds, and we don't know if it's as big as they say. >> no, we don't. there's something called rehypothecation which i think we all studied up on again. i remember learning about it many years ago but you need to

brush up on some of these things it could have the effect of overcounting it also leads to why you can potentially have more shares short of a stock than actually are outstanding or at least in the float, i should say, jim, but your point is good as we look at gamestop, amc is below $6 cost comes down. the insiders made a fortune by selling at amc anybody who was in a position to sell, certainly tried to do so except as you pointed out so often, at gamestop >> yeah. >> they didn't do a primary offering, but even the chewy guy -- we don't know, maybe collared a stock but hasn't sold >> no, i have take two on tonight. they have numbers about how you get their downloads. this brick and mortar channel is going away so much more quickly than the people who are promoting it i know when you mention that there are many people and carl, this is a difficult thing for us who think that we're hurting

people by mentioning that perhaps gamestop's model, the stock was at this level last time when it used to be almost all brick and mortar, all the grand theft auto brick and mortar i don't think our job to promote or pump, and i certainly don't want to pump so others can pump. we have to point out gamestop is a challenged model maybe there is a better plan as the stock ticks down, the better plan becomes a worse plan so carl, the silence is not golden i know david was saying what can they say i don't want them to say anything you know what? thank you. thank you. i will sell stock and do better. anyone who listened to simon properties call says that they had a decline but david simon did a good job the stock will be up good call last night but let's get to the chase people like tapp us ri and l brands they're talking about kohl's i don't hear anyone saying

people are going back to playstop and -- gamestop getting xboxs. i'm not reading where it's jump on, this is your chance. i'm not getting that >> yeah. i know simon did talk about an improvement in rent collection, but i'd be curious to see e what he says tonight. you have the gamestop, take two part with no new games being announced. that's partly why it's down premarket, and then ea >> the kardashians ea needed something, more mobile last time take two spoke, the stocks 275 two days later it was 154, and look at where it went to i think it will be the same trajectory people say why doesn't strauss do something new grand theft auto is the greatest platform of all time sometimes you just -- they have 93 in the pipe

>> they do, but activision had a good quarter in contrast to ea and to as we're looking at ea and see the ceo is joining us later. and, of course, to take two. >> look, activision blizzard gave you a nice dividend boost there are games they put on that are sensational. i know the take two has been consistent sells at 29 times versus higher than the others. if you look at the chart, there's resistance after every quarter. strauss does not hype his company. he's straightforward and let the stock come in and buy it once again, gamestop, not mentioned by name, but you just don't go to gamestop to buy games anymore. it's just not the efficient way. >> yeah. a lot of earnings to chew on this morning we'll get to dupont and carrier and fox, of course, ahead of sysco and twitter tonight. a couple upgrades.

consolation brands at goldman. we'll talk about that when "squawk on the street" comes back what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity

of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley.

welcome back to "squawk on the street." has that been memorialized in a rap song, there's a lot in a spac and a dream

we point to it as an area of speculation for some of the market but the issuance continuesand baited 11 that's just my count today, 11 new spac ipos getting priced i won't go through all the tickers. ranging in size from 48 million share offerings to as small as 4 million share offerings. but 11 new offerings and then, of course, we have the spaces that are announcing deals. one to watch because we keep a close eye in this area and talked about it earlier. ev-related and of course, we know spac and ev, really, you get things moving there, don't you? a company, a spac called d carbonization plus acquisition corporation. they're doing hyzon. they're in hydrogen. i know you're focussed on hydrogen in their presentation they tell me the future of hydrogen is now. it's not yesterday it's not tomorrow.

the future of hydrogen is now. >> i wish it were. i had lindy on last night, steve angel, they're the biggest in hydrogen of all kind there's gray, blue, green. green is the holy grail. it's just not economic yet the price has to come down south korea is committed to it they'll support it our country is not committed to it as a matter of fact, our country is probably one of the laggards in -- >> they tell me fuel cell economics are driven by fuel costs and fuel cell trucking is already cost competitive that's what they're saying >> that's terrific, and if it were true, it would be even better steve angel last night, what am i going to do? lindy is the biggest china and south korea is committed. it's a great fuel for forklift amazon and walmart like it if you believe as i do it's for long hall trucking, then you do plug charging.

why didn't they buy plug power when they had a chance it's a better performer than almost every other company that could make it for cars but they're not saying that it's going to be for cars they compare it to the cell phone industry i like -- there's a note about guy gm because of hydrogen that's wrong you guy gm because of electric batteries. and mary barra's commitment to being carbon free in the mid 2030s. hydrogen doesn't work right now unless it's imported by a government and i -- and we do not have that >> price of hydrogen they say is expected to decrease rapidly >> he's using the 9 to 2 >> we've had so many of the koceos coming on who talked about their technology i just want our viewers to listen to a few of the claims we've questioned aggressively over the last few months take a listen. >> the most telling metric of

where any electric car company is today is a single metric. and that is efficiency we can go well over 4 miles per kilowatt hour. this is world class technology here in the u.s. we're going to take the tank to the next level >> we offer both battery and hydrogen electric and go the grid buffering that's how we get the energy cheap to broker back to the fleet. >> we're enabling our customers to go farther on a single charge and also we have the best fast tracking capabilities today. we're charging large capacity, large commercial vehicle batteries in 30 minutes or less and a glide path of 15 minutes or less. >> with our vehicles you do a 15-minute fast large a long range battery that can be charged more rapidly really helps close the gap between electric cars and comb

combustion-based engine vehicles >> somebody is going to win. >> yes, battle grounds how quickly you can charge, how light it is and d you want self-driving i had someone talking about fourth dimension, sensing signals. those were all audis completely endorsed it nikola -- they had in a previous video another way to be able to power a truck. >> roll it downhill. >> i mean. >> nikola is still out there >> they're out there >> lordstown, i've had them on quantum scape. i like them. >> we've had many of them. obviously different. some making the automobiles but a lot focussed on the battery annen the efficient -- and the efficiency of theirs >> to quote shakespeare, romeo, where art thou >> even as you're singing that,

the city of san antonio naming blink charging as provider of ev charging infrastructure. that's happening in cities all around the country as we're talking, headlines from gm, jim. it's about extending shutdowns because of the chip shortage we'll get to that when we come back after a break (sam) gamers! he who is good for making excuses is seldom good for anything else. take fuzzywuzzy28. blamin' losses on a laggy network. only one or two. verizon 5g ultra wideband is here, the fastest 5g in the world, with ultra... low... lag! stop blaming the network and start becoming the best gamers in the ga-- that escalated quickly. (sam) 5g ultra wideband, now in parts of many cities. this is 5g built right. only from verizon. i have an idea for a trade. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator.

voila! maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪♪ good morning! the four way is a destination place. right here, between these walls, is a lot of history. i am black. beautiful. i must be respected. black lawyers, doctors, educators, martin luther king, b.b. king, queen of soul aretha franklin. you're sitting in the place where giants ate. the four way, as a restaurant, meant so much to this neighborhood and we wanted to continue that. to have a place where you have dignity and belong,

that's the legacy of the four way. ♪ a little less than six minutes before we get started with trading for the day let's get to mad dash. >> one of the most positive notes about sdz stelation brands, is they're saying it's best in show buy to add cut to the conviction

list, but modello, selling well. they have great margin expansion. they are the only growth beer company in the actual traditional category remember, sam's has been going up because of hard setltzer. the hispanic opportunity is incredibly significant i like this stack very much. i've had them on basically robert sands, i've had them on probably more than anybody else now. it's bill newelens what is not mentioned, it's one of the reasons i want to point o out, there's substantial investment in canopy with all the pot stocks doing incredibly well. i think canopy at 44, i rerecommended it 20. i think we can go higher if we

have not decourt reporting school -- decriminalization, but you can use it it's a very good company the former cfo of constellation runs it. we will have separate bars you will not have a regular bar and a cannabis bar in the same room eng lloumite opinbe fr nus away stay with us cyber attacks are relentlessly advancing. to end them, cybereason built a cyber security solution so advanced... it can end attacks today -- on computers, mobile devices, servers and the cloud. and deliver future-ready protection, keeping you sharp for tomorrow.

join us, the defenders, in our mission. cybereason. end cyber attacks. from endpoints to everywhere. from endpoints to everywhere. labradoodles, cronuts, skorts. (it's a skirt... and shorts) the world loves a hybrid. so do businesses. so, today they're going hybrid with ibm. a hybrid cloud approach lets them use watson ai to modernize without rebuilding, and bring all their partners and customers together in one place. that's why businesses from retail to banking

are going with a smarter hybrid cloud using the tools, platform and expertise of ibm. this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. incomparable design makes it beautiful. state of the art technology, makes it brilliant. the visionary lexus nx. lease the 2021 nx 300 for $359 a month for thirty six months. experience amazing at your lexus dealer.

we mentioned those headlines out of gm a few moments ago. they're extending downtown after three plants in part because of the chip shortage. they're going to reassess in march. they say it's hurting everyone in the industry. they say in some cases where there is a shortage, they will build vehicles without certain modules so some features will obviously be sacrificed and we'll hope to learn more when they post earnings tomorrow. >> ford was upgraded it's an 18-month problem the chie these are hoarding these. there's only a couple companies with the foundry capacity.

we decided to outsource foundries to countries who have very close relationships with china. president trump, he did not really understand the significance thought it a military problem. it's a problem about american industry and david, you can't just throw up boundaries they take a huge amount of time. if you think the shortage is real, buy the material -- companies are going to report. it's all about the food chain. and our decision to de-emphasize it in this country >> no doubt, and carl, there is a bigger question as we watch the opening bell there we'll wave back there. there is a bigger question here, jim, about well, defense generally speaking and how involved the american government is going to get in terms of encouraging five nanometer technology at intel and perhaps bringing others in as well i mean, that is going to be an important effort to watch. i think it's one reason why there are investors who are

bullish on the prospects for intel. it's in part their expectation that you will see the u.s. government become aggressive in sort of intervening to help to help the industry. >> i think it can happen one of the things is that it's targeted the republicans didn't like to help certain industries. biden isvery much involved wit trying to get alternative energy there are no real senate champions to be able to do this. there's no real constituency to be able to say look, we should start helping intel. amd is ahead of intel. are we going to help intel come up they used to build foundries they're pretty much foundry light. i was hoping to be able to get taiwan semi to be involved and hoping to be able to get maybe global foundry, but these countries have close ties to the chinese, and they're afraid they could risk their chinese business so it's going to have to be done from the ground up using our companies, and i don't know whether there's the will in

washington to be able to break the strangle hold that we gave to these companies we gave it to them because we decided we were not going to be anything other than the semi light business i do like amd and nvidia they know how to do it intel got a new ceo. you got to love them everyone likes them because of the new ceo. i like companies that have good, solid foundries and the one that has built is most and is going to double the cap exis skyworks solution the ones that have done is least is qualcomm. that's why the stock has been a dog since they reported. if you believe in foundries,yo believe in a company that has best control of fate, by sky works. it's a great company >> that's interesting. business week has a big piece this week on tim cook and sort of the fortress he's built apple into another company going vertical into semis i would imagine you think it's well-timed >> yeah. the exposure with arm and nvidia

is trying to buy it. that goes on and on. nvidia got melaknox. british authorities stopped the nvidia deal. nvidia is doing incredibly well. it doesn't even need arm >> but i wonder if you're going to see a broader effort. that's speculation and it's early in the biden pl administration do you get some sort of broader effort toward over the next five years developing our chip infrastructure to the likes of apple and qualcomm a part of it and nvidia and amd are a part of it in some way >> that would be ideal and if we got constituency to do it david, you know that i was close to the previous administration when it came to china policy >> yes >> they did try to get intel involved and intel did some things but it never came to anything the previous administration was into what general mattis was into, to make it so taiwan was

safe i'm not questioning the loyalty of taiwan. they're very close to us i am saying that the chinese double order like mad. so if you want to be able to, your ford or gm, and you want the chips and these are not -- automotive is not a powerful industry in the chips. you're going to have to pay extra. you can pay extra and get them, but it does ruin your profit margins. the idea we'll talking about building a plant from the ground up, when ireland opened -- when the irish plant opened for intel, i went to it. very nice river dance presentation, by the way and it did fabulously. i've been to an israeli plant where on saturday no one is there because of the sabbath intel used to be the greatest builder of plants and manufacturing. they lost their way. i don't think the u.s. government's business is to bail out intel. it doesn't make any sense. what did they choose to do they bought back stock they should have been building more foundries like the old days when jerry parker put a foundry

in that was the same everywhere. we can't -- >> that may be true, but it doesn't mean you can abonn don the ability of the united states to produce these important components. >> no. i want all the companies to -- >> i want all the companies to be involved. i don't want it to be intel-based. why be the one that didn't really get the job done? why not everybody? with some money put in by everybody? >> but a lot of them are relying on taiwan's semi right now >> that's what you need to diversity. >> taiwan semi wants to diversify. it's hard. look at the companies. cap ex, 25 billion micron, i don't want to disparage them they also believe in foundries they're not having any problem the companies that build foundries, sky works solutions -- not allowed to mention apple but sky works solutions has everything you need in an iphone, and they're not hostage at all if you go to the conference call, you can hear they decided

to spend money carl, these other companies didn't spend the money they're paying the price the clients are paying the price. >> they compete on apple sky works. it was seven nanometer >> the last quarter they said they were capacity constrained everywhere i think it's an inexpensive stock at a certain point, but they're all asset light. but that's been their business, david. they're an ip company. >> right and qualcomm shares suffered after their last earnings last week, of course. >> yes >> yeah. there was the downgrade last week arguing that the 5g up side had been played out. i forget who it was through, but we'll watch qualcomm jim, i'm look agent the smallest audience since 2007. that's in line with the season ratings drop of 7% still going to be the most watched telecast of the year but cbs does point out it was the second biggest blowout for a super bowl in the last 18 years

despite the snow and people stuck at home. it's not a great rating for the game >> no. and i think -- yeah. obviously they lost a lot of people probably in that third to fourth quarter we kept waiting for mahomes, all of us, i think they're going to come back >> tonemy romo was on saying i wish there were a better game. >> i know. i wonder if anybody gets in his ear like what are you doing? >> kill walton us used to be, he would say this is a louzy game, i don't know if i'd watch it >> good transition to fox earnings stock is not doing much. revenue 4.79 billion been trying to monitor the call. we've been on the show during some of it adjusted ept a up 17%. you can see stocks down. interestingly, jim, there's been i think spinburn wrote about it. there's a story, chatter,

nothing to it as far as i'm aware at this point, and i've had my share of good scoops when it comes to the murdochs would they ever take it private? sell the network and the o and os and then take the fox news channel, fox business private? i don't know who knows? but that's been out there a bit. i think it may have helped the stock price a bit yesterday. analysts taking their time, putting models together. i don't think there's anything there quite yet, but we'll keep an eye on it the overall business, they seem to think they're well positioned for the current environment. >> viacom has had quite a run. i questioned it lower. there were sellers endlessly the seller seems to have disappeared. at the same time, when you look at someone asked me last night, a terrific guy, very much involved in the nfl. he said if you had roku or v viacom, which would you keep

i would pick roku. >> viacom shares up 44% this year we pointed it out last year. discovery keeping pace both punished last year. there is belief advertising is coming back, but you look at what goggle or alphabet and facebook have been able to do and you wonder about the traditional advertising companies. we'll see. they're rolling out what is it march 4th, paramount plus. plenty of that on the super bowl in terms of promotion. they spent a lot of money. it was cbs, it's their air time, but they could have sold that for a lot of money and chose not to >> i'm just joanne lipman tweeted that 25% of the ads were for cbs. we weren't crazy yesterday when we were talking about the paramount plus promos. >> wow there have got to be companies that said wow, we were in the fourth quarter, you give us a break. the fourth quarter was tough

if you saw draft kings yesterday, the stock was down. there were a lot of games that were, and questions meant for the fourth quarter to try to keep people interested mahomes not having a touchdown was a very significant part of trying to figure out the money went so much toward mahomes for mvp. that was wrong i think we learned that if you could get defense being the mvp, i think you would have picked them because the shutdown of kansas city was extraordinary but tom brady is an easy choice. >> carl, you mentioned yesterday about twitter. that stock up yet again. i guess we're waiting for earnings there right? >> yeah. there's the 7-year high which we mentioned yesterday. jim, there was the bloomberg report talking at further study of a paid product. and earnings tomorrow. we'll see whether or not they discuss engagement on the super bowl or anything beyond that >> sports writing, anything

involving sports, the sports people tend to give away stuff on twitter there was a lot of thought that when the real krump was banned that you'd have the stock go down a little irony stock has been better than expected post the real donald trump going down >> yeah. it's $47 billion market value. and again, i don't know about advertising on that platform >> well, that's a big question >> how robust it is. >> the advertising on the pinterest number was extraordinary. >> i know. >> they have created a national business, and it's viewed as a safe place twitter not necessarily. >> twert ahead of earnings >> no. they can tell a story. and kathy wood will maybe come in and buy it at the end the acknowledged, like, stepback stop for snap. she did a great fund manager and tesla, tesla, and how many times with tesla >> incredible. kathy wood, the arc fund the money that flowed into those funds was astronomical

she has plenty to put to work. >> she likes to put things to work in discount she bought draft kings and snap. she's been doing aggressive selling in cloud names a lot of people are just -- the parlor game is to pick what she's going to like next i always think it's better to wait than game her >> but she's a power in the market, without a doubt. >> yeah. >> listen, carl, i can remember when she came on with what we thought were outlandish targets on tesla, and they've been met or competed. >> a lot of people shorted tesla all the way up they didn't believe, and well, they've -- they have the traps on their -- tracks on their back to show it c carl, i've been there. >> two names one is shopify this morning. announcing today a new expanding their merchant list to all of

those selling on facebook and instagram. shopify i think that's an all-time high. >> yeah. shopify, ever since instagram, since mark zuckerberg committed to small and medium sized businesses, it's natural to partner with shopify i love it, along with twilio and etsy are about empowering people who are disenfranchised. this stock is up is 1,000 points in this market, if you're helping small and medium size business to transition from brick and mortar to the web, you have to use shopify. it's natural and cheap and they back you what an amazing company. i know there were several major companies that tried to buy them and really, much higher prices than it was before but they're a canadian proud company and they weren't interested in selling. and boy, did they ever get that right. an amazing story >> yeah. that's one reason, at least why after a lower start record highs

on both the naz znasdaq and the russell this morning let's get to bob >> happy tuesday a down day what a run six up days in the s&p 500 you know, that's only happened 12 times in five years we may have seven up days. we don't know. this is a modest decline at the open kind of a defensive just modest pullback take a look at the sectors i keep pointing out china keeps outperforming. the chinese etfs, the s&p of chinas at a new multi-year high. reits good simon property had good things to say staples are up that's a defensive group it had a terrible start to the year that's an indication of the kind of day text modesty on the downside and energy the big performer it's good when you get a pullback to pause and look at what's going on for the year the rally has been the reopening stocks and a little bit on the tech stocks. on energy, you know, after horrible several years, just

great starts here. we have 13-month highs in oil. occidental, marathon, these are high beta energy names they move more than the energy day. and even exxon is having a terrific year so far the steeper yield curve, we talked about the bank stocks a great start. money centers even doing well. j jpmorgan up 10%. groups with a rough few years off to a great start in 2021 elsewhere, i guess you could say the tech rally continues i don't know what you call some of these stocks, disruptive stocks p paypal is up 20% microsoft old school tech names, this is a sole exception, outperforming the s&p 500. the s&p is only up 3% or 4% so far on the year.

it's hard to underestimate the impact of tesla. i want to point out how it's relentless rise is impacting the s&p 500. it's an $828 billion market cap. it's the fifth largest stock in the s&p now. and it's waiting it's about 2% of the s&p right now. and we all own a little bit of bitcoin. if you own an s&p fund at this point. it's 15% of consumer discretionary. amazon is 23%. put amazon and tesla together, it's about 40% of the consumer discretionary sector let me show you the chart. it's up 7% this year mostly because tesla is up and amazon is up as well bear in mind, and this is even including the fact that ford and general motors are having a great year they're up about 30%, but it's hard to move the dial when tesla is so big and consumer discretionary. let me show you the waiting in ford and gm. gm is -- there's tesla, 838 billion. look at ford and gm dpm. $80 billion. that's one tenth the size of tesla. ford is 5 % the size of tesla,

carl and that, of course, means that even when ford and gm are having great years, up 30%, it's hard for them to move the s&p 500 forward. tesla is the one that really moves things right now guys, back to you. >> wow that's amazing thanks, bob. as we go to break, time for the bond report. look at how treasuries are fairing. a mixed picture a day after the yield on the 30 briefly got past 2 % for the first time since the pandemic europe, that push to form the new italian government is in focus. trying to get consultations with political parties together finally a look at the dollar index. continuing to pull back from the two-month highs. "squawk on the street" is back in just a moment

- [announcer] grubhub perks give you deals on all the food that makes you boogie. (phone dinging) (♪ singing in foreign language ♪) ("2 phut hon (kaiz remix)" by phao) ♪ get the food you love with perks from-- - [group] grubhub! - grub what you love. new york governor andrew cuomo announcing new york city restaurants can bring back indoor dining beginning friday that's a slight move up from the previously announced valentine's day. as to why, he said, quote, we

respond to the data, to the facts that we face today the facts may change tomorrow and then we will change with the facts. we adjust with the enemy, but the numbers are down now jim, i was interested to hear you say you are still shooting to open your restaurant on cinco de mayo. you just may not go to a restaurant this weekend. >> i want the ventilation to be proper the issue with these outdoor facilities is the ventilation. you need to be able to think about this -- dr. kimberly prather, you have to consider it like secondhand smoke. if you can smell the smoke in the back, at the front of a restaurant, that's the same exposure you might get with someone with covid in your restaurant i think we should wait longer i love restaurants, i support them, kep workers around on mothball, still paying rent. i think people will feel better when more people are vaccinated. i don't want to create an

atmosphere where i feel that the ventilation isn't proper working on it. it's not easy. i have a great outdoor space, but it's a little chilly out there. and they won't let may build a little, you know, nook in the front because it's a bus stop. >> how about a fire pit? >> yes, a norweigian fire pit. 25%, 17 tables, that's not a lot of money on the chicken ticket. >> no, it's 25% capacity, right? >> yes. >> i have a bar and you are not allowed people at the bar. i think that's oxymoronic. come to my bar but don't. >> i can't wait. >> don't worry, aim going to get that darn modela that everybody loves. >> down those margaritas, carl they go down so nice. >> we definitely need an uber on the way home, david. no doubt about that. we will take a break here. dow and s&p are down but nasdaq record high, above 14k

don't go away. some say this is my greatest challenge ever. but i've seen centuries of this. with a companion that powers a digital world,

traded with a touch. the gold standard, so to speak ;) - [announcer] grubhub perks give you deals on all the food that makes you boogie. (phone dinging) (♪ singing in foreign language ♪) ("2 phut hon (kaiz remix)" by phao) ♪ get the food you love with perks from-- - [group] grubhub! - grub what you love. when you switch to xfinity mobile, you're choosing to get connected to the most reliable network nationwide, now with 5g included. discover how to save up to $300 a year

with shared data starting at $15 a month, or get the lowest price for one line of unlimited. come into your local xfinity store to make the most of your mobile experience. you can shop the latest phones, bring your own device, or trade in for extra savings. stop in or book an appointment to shop safely with peace of mind at your local xfinity store.

today at 12:30 p.m. eastern time healthy return spotlight, up-to-the-minute information on the rollout of the vaccine for investors, policymakers, business leaders, featuring rick gates, alex gorski, annette a jenkins, mark romgers and more you can register at cnbc en.c/hlthy returns we're back in a moment to. gers . you can register at cnbc events.com/healthy returns we're back in a moment rogers ae you can register at cnbc events.com/healthy returns we're back in a moment c rogers . you can register at cnbc events.com/healthy returns we're back in a moment

we see breakthrough medicines getting to patients in record time. at emerson, our automation software is empowering pharmaceutical companies to accelerate their production of critical vaccinations for the world. emerson. consider it solved. - [announcer] grubhub perks give you the kind of panera deals that make you want to move. ♪

get a free delivery perk on your first order from panera, only on.. - [group] grubhub! - [announcer] grub what you love. new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home.

let's get to jim and "stop trading." >> one of the things that they said, i bought their masks at target, i kind of like them. they are getting 20% of the business lz that aren't making a lot of money this is a very responsible company ever since the bottom. they have done a great job i think it can go higher remember that's what's in vogue right now, things sold in stores are doing very well and haines has a great line of product. david, i am wearing haines right now, but i don't feel a need to show. >> thank you for pointing that out. >> you have straws tonight from take two also dan rosen's wife.

>> i have bill.com which great for small, medium-sized businesses to pay their receipts take two, a prediction here. it starts going down tomorrow and starts going up because people realize the value of grand theft auto this has been the pattern. today it goes down, tomorrow it goes up. i don't think the pattern is going to be any different. everybody raise their price target i like take two. >> jim, we will see you at six "mad money" with jim cramer at 6:00 p.m. eastern time. good morning, everybody, welcome to "squawk on the street." i'm carl quintanilla with morgan brennan and david faber. nasdaq all-time high as the dow and s&p take a bit of a rest after six days higher. earnings, cisco and twitter tonight. more discussion about stimulus and balance between stimulating the economy and overheating it speaking of which, the president is set to meet with high-profile ceos in a meeting at the white

house later today. kayla has more on that good morning >> good morning. the white house just releasing a list of the business leaders that will be meeting with the president, the vice president and the secretary of the treasury at the white house today. it includes representatives from most powerful business lob bees inc including the roundtable and chamber of commerce. jamie diamond from jpmorgan chase. also doug mcmillian from walmart at the meeting and then gap ceo sonia syngal on the list she was present for the administration's very first conversation on the economy, a roundtable head in december during the transition. and lowe's ceo marvin i wellisos well as tom don shoe it is defensiinitely a white cor list interestingly, the white house says this will be a conversation about the need for urgent economic stimulus, but it also

comes just a day after the white house press secretary trade to perhaps walk back or add some nuance to president biden's conversations on the minimum wage over the weekend saying he didn't necessarily take minimum wage out of negotiations for the stimulus bill, merely he would be leaving it up to the senate to decide whether it can be passed through the budget reconciliation process you will note all of those companies are companies that at least pay some type of employees a wage, an hourly wage, whether it's a bank teller or a store associate. so you have to imagine that is going to be a topic that figures prominently as well. guys, back to you. >> you know, anything else that you could imagine would be on the agenda obviously, as you say, minimum wage, and then sort of the broader idea of how much stimulus is noded i needed in te economy. anything in particular that may come up as well? >> reporter: well, i think it's going to be a broader agenda setting type meeting i mean, we definitely have seen

these organizations with prominent access to republican administrations in the past. >> but perhaps less priority access to the biden administration which has said it would prioritized organized labor and the labor community when it makes its policy decisions. it's an opportunity to have a seat at the table and to speak their mind about what they feel is important we 14 also note a lot of these organizations have shifted their agendas to reflect more of the priorities of the biden administration because they don't want to be coming to these conversations with unrealistic expectations about what they would like to see. business roundtable was advocating for deregulation, tax reform and free trade during the trump administration now they actually are in support of a higher minimum wage federal mask mandates, climate change, and some changes to immigration policy as well so you could imagine all of those issues are going to be on the table today. >> all right kayla, thou. we are going to turn to the

markets. jethro townsend, capital founder and chief investment officer thanks for being with us today i realize stocks are taking or at least the dow and the s&p are taking a little bit of a breather here, but in general ara lot of talk the reflation trade back in focus as rates move higher and a steepening of the yield curve. do you think it's here to stay >> thanks for having me on the show first of all, i think with regards to the rise in interest rates, as you say, the markets have continued to do well for a number of reasons, which is often discussed. first of all, in terms of fiscal and monetary stimulus, earnings revisions have been very positive in terms of the universe that we look at as long as prospects for a better second half in terms of growth of the economy, certainly as the covid vaccine rollout and questions surrounding the success of that vaccine.

just getting back to interest rates and sort of where we are now, we have had a lot of internal discussions about the level of interest rates and steepening of the yield curve. but we also think it's instructive to look at the magnitude and direction and timing of these interest rates if you look back historically, the steepening of the yield curve has been more positive for shorter duration assets and less so for the longer duration growth type names. in terms of shorter douration names, we have seen an outperformance of small cap values and more cyclical names happening since november you have to look underneath the surface in terms of what are the republicans for this deviation in interest rates. historically, if rates are driven by fed policy, that is sort of the negative to the markets, whereas if it's driven by growth, that's been seen as more of a positive. >> yeah. so given that discussion and the nuances of it, where do you fall

in that debate, and how is that driving your investment thesis as 2021 unfolds here >> in terms of our investment thesis, we look at -- when we focus on tech and innovation as i said before, historically that steepening of the yield curve caused us to look at some -- you know, having more diversity in the portfolio with regards to growth and some of the more value oriented cyclical names. industry for the sake of the discussion, the rising yield curve tindending to be more favorable to semis and some of those companies with a, which is also cyclical. there is also some of these secular grstories that can fermt t can that perform in any environment.

clean tech, 5g, cloud software and infrastructure >> you know, when people bring up inflation, one of the biggest pitch backs is you are not going to get it without a change in the labor markets. you got so many people exiting the labor force. as we are talking, jolts came out and the quit rate is up to 26 that's 0.1 below the pre-pandemic high. i wonder if you think once we get broad vaccination, if the labor market does run, does that conversation about inflation change >> i think it certainly is worthy of discussion if you look at what the fed is actually saying is that they are not going to take their foot off the accelerator until it could be 2022, 2023. what could possibly happen sooner than that, they might take their foot off the accelerator in terms of asset purchases. that could happen sooner to your point, if we get this massive sort of inflection in growth in the second half, that

could cause themagnitude and the timing of a rate spike, could happen under that scenario that could be a risk to the markets. certainly with regards to longer duration assets. >> jethro, you mentioned asset purchases by the fed. did you take note of the fact that u.s. junk bond yields dropped below 4% it's hard to imagine capital being cheap, even for companies that may be struggling in some way. >> that's the point of a lot of what happened with the markets and certainly with regards to m and l recently the cost of capital that is reason really low. if you look at interest rates, rates have gone up, but real interest rates have actually gone down if you adjust for inflation maybe in negative territory. another factor is the earnings yield. it's still quite positive. the ten-year at 1.1% or so the earnings yield of s&p 300

basis points difference. the s&p is 4.5%. those things are factors we should take into conversation. >> jethro townsend, thanks for joining us this morning. >> thanks for having me. we are watching bitcoin's continued charge towards 50k a record high in today's trade kate rooney has more on that. >> good morning. bitcoin topping $48,000 overnight. that came, of course, after elon musk's tesla says they were buying the cryptocurrency. the take away from wall street, i am hearing that tesla's move is likely to unlock dormant bitcoin demand from other companies. j and p says it derisks some similar decisions formy any corporates, it adds cover for cfos thinking about crypto apple could be next and has, quote, a clear opportunity to offer crypto

fund strat said that tesla marks the beginning of a larger corporate demand trend fund strat and tom lee's team crunched some of those numbers for us on what demand could look like base on the s&p companies holding $2.8 trillion in cash, if they all take the same percentage and tesla, for example, about 7%, that could mean $215 billion worth of bitcoin demand we have already seen some elevated buying from so-called whales in the market according to some new data from chain analysis while it's holding more than 1,000 bitcoin, worth around $40 million at the time, their highest level of buying ever during the first two weeks of january. that was when bitcoin was around 40,000 tesla said it bought bitcoin at some point after january 4th and they say based on that demand stepping up a gear, it was likely in early january. that buying did drop off a bit

in the second two weeks of january. analysts tell me that the drop shows that without those bigger buyers, there really wasn't quite enough demand to support prices above $40,000 at the end of january tesla announcement may change that dynamic if wall street analysts are right about this new wave of corporate buyers david, back to you. >> kate, thank you. still to come right here, shares of carrier are down following earnings from the company. we will check in with the ceo dave get lin "squawk on the street" will be right back

when you switch to xfinity mobile, you're choosing to get connected to the most reliable network nationwide, now with 5g included. discover how to save up to $300 a year with shared data starting at $15 a month, or get the lowest price for one line of unlimited. come into your local xfinity store to make the most of your mobile experience. you can shop the latest phones, bring your own device, or trade in for extra savings. stop in or book an appointment to shop safely with peace of mind at your local xfinity store.

welcome back it is time for our "etf spotlight. looking at the the communications services sector it's up double digits over the past three months and it's up again this morning one of the names in the group to watch, electronic arts announcing a deal to buy glue mobile for 1250 a share in cash or $2.4 billion. that stock is up around 30% over the last 12 months electronic arts is up 2% right now. ceo andrew wilson is going to join "squawk alley" for a cnbc exclusive. we'll be right back.

we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize and improve the electric grid.

- [announcer] grubhub perks give you deals emerson. consider it solved. on all the food that makes you boogie. (phone dinging) (♪ singing in foreign language ♪) ("2 phut hon (kaiz remix)" by phao) ♪ get the food you love with perks from-- - [group] grubhub! - grub what you love. carrier down over 5% this morning after it reported full year and fourth quarter reports. joining us is the company's ceo david gitlin always good to have you. i think a lot of investors are tri trying to understand what the

world will look like for companies like your own, benefitted from the pandemic and also, obviously, been held back. hvac, north american residential up 25% a great business for you over this last year how do you see it in terms of things that will perhaps go back to a more normalized growth rate and things that will benefit once we get back closer to normal >> good morning, david we really view 2021 as kind of a tale of two halves the things that have been strong we come in with very strong backlog. things like you mentioned, residential, hvac, third quarter up almost 50%, fourth quarter up 25%. the backlog is up 3 x over what it was at the same tame last year coming into the year. january orders have been very strong we continue to see what's strong we will continue to be strong in the first half then what we are banking on is the things that have been acutely challenged during the pandemic things like our light commercial business, which is tied to

retail other parts tied to hospitality as the vaccine gets out, we are expecting a recovery of those businesses in the second half of the year. >> the backlog carries you through the first half and then the second half you see orders pick up for what you just talked about in terms of retail stores and just commercial spaces >> that's exactly right, david and what's nice is that at carrier we find ourselves at the intersection of three really critical societal needs. people are putting more attention to indoor air quality. a huge focus on sustainability with the current administration, you saw larry fink's letter. a lot of focus on sustainability that's what we do. then with the coal chain and the vaccine distribution we find ourselves at the intersection of these three societal needs and we think that will provide lift in our growth and earnings in '21. >> why the decision to start buying back stock, particularly given the incredible performance you had? some may argue you might be buying it back higher than you might otherwise want to?

>> we are buying it a little bit at the margin. one cent offset to a three cent tailwind that we are seeing because of the accretion we are talking about 200, $250 million of share buyback. our big focus is going to be on growth so you will see more investments in organic growth. we have now positioned ourselves for both on m&a, we have done a phenomenal job with the balance sheet. when we spun from utc, we had $10 billion of net debt. we ended with $7 billion of net debt the end of this year it should be closer to six we sit on three billion of cash. increased the dividend by 50% in '21 over 2020. a little bit of share buyback but a lot of focus on dividend and growth. >> the growth in refrigeration orders, how much is vaccine rollout, and if a lot of it is, how much does that continue now that a lot of the infrastructure is in place? >> we will see great growth in our refrigeration business the reality is the lion's share

is a cyclical recovery if you look at our truck trailer business in north america, for example, this year should be up 40% over last year the lion's share due to a cyclical recovery. we are seeing more orders and pentup demand for things like vaccine distribution and food distribution so we have one business that does cargo monitoring that is really directly tied to the vaccine distribution sales there were up 10%. our backlog going into this year is up 170% in that business. we are seeing more excitement for the links offering that we have established with aws, which is really about data what you really need for effective vaccine distribution when you have all of the multiple players in the system, all the multiple handoffs is one central data repository and then using a.i. and m.l. to improve the effectiveness of that distribution that's what we are particularly leaning into. >> interesting i am curious, when you look around the world what you are seeing in terms of green chutes of recovery in your businesses.

>> china is strong for us, that continues into '21 it was encouraging to see signs of life in southeast asia. that was acutely impacted in the second and third quarter europe continues to be a mixed bag. but orders were up 5% in europe, which was very encouraging in the fourth quarter the americas u.s. has been, continued to be strong everything outside the americas, outside the u.s., has been quite challenged >> david, i wonder, the move in copper the last year, is that something to be welcomed as a sign of global growth, or given the strength of the move, is it something to be feared >> well, it's not welcome by us because we buy a lot of copper. >> that's why i was asking. >> it is encouraging because it is an indicator of economic growth we are going to see little bit of commodity headwind. you look at copper, last year

around, i think it hit $2.50 a pound. this year around 3.60. we are fortunately blocked for about 75% of our copper pie. so that helps us. you look at steel. steel is almost double from last year into this year from 600, $65,000 to 1,300 fortunately we blocked a lotov our steel purchases for this year but clearly there is commodity head wind out there across the country. now, for us we will offset any headwind we see with pricing this year. we are fortunately blocked and can manage it through pricing. it is something certainly as we get into 2022 we will keep an eye on. >> i know you raised three-year cost reduction program by 100 million to $700 million. you your company was in the spotlight for a loss of moving jobs in the country. are you going to be cutting more jobs >> we are adding jobs. we will add probably 500 manufacturing jobs in the first half of this year.

we added 500 engineering jobs last yore. we are adding another 500 engineering jobs this year when we are looking at the kind of growth we are seeing, we said this career is going to be top line growth of 6 to 8% we are in the hiring mode to keep up with the demand. i am more concerned about making sure that we can operationally keep up with the demand we are seeing versus the fear that the demand is not going to be there. >> where is that additional $100 million in cost reduction coming from >> supply chain. 85% of our costs of good sold is in the splay chain we announced carrier alliance and partnerships, suppliers on the journey with us are rewrarde with more businesses those that are not don't. >> appreciate the quarterly update thank you. >> thank you, david. after the break, this zorning fuel cells start up hyn motors going public today.

that's after the break stay with us

♪ i'm courtney reagan. here is your cnbc covid update at this hour for the second straight day, new covid cases in the u.s. have come in below 100,000, just over a month ago they peaked at 300,000. in less then a week after reporting 500,000 deaths in one day, the daily toll below 200,000 for two days in a row. we are hearing from the world health organization team investigating how the coronavirus pandemic started in wuhan. at a news conference they said they are not sure how it started but they think it was transmission from some sort of animal they are confident, however, it wasn't accidentally released from a virus lab in the city >> so look, for example, at the wuhan institute of virology, and

the states of that laboratory, and it was very unlikely that anything could escape from such a place. >> and in england all kinds of people, including television lords, are pitching in to help with the national vaccine program. "downton abbey's" hugh bonneville is helping in west sussex. >> that's fun. courtney reagan, thank you. hiyzon motors entering the market through a spac deal announcing a merger with decarbonization plus corporation. ceo craig knight in a first on cnbc interview craig, thanks for being with us. >> thank you. >> so much competition in this emerging industry. what makes hyzon different and why should investors put their money to work in your stock as it becomes public? >> first, thanks for having may.

it looks like there is a lot of competition in the space perhaps, but, frankly, we feel like we are almost on our own at the moment because hyzon motors is built on the back of almost two decades of fuel cell technology development at the parent company, horizon fuel cell myself and now chairman, co-founder george gu have been developing that technology for that period of time. so we have a very strong technology base, which has been laid down over a long time, and a strong global network. so when we bring this new business to the market, it's really an application for a very mature technology and we think that differentiates high zplon motors quite substantially we think that that's evidenced by the fact that we have secured orders from customers already in three different continents. >> yeah. in terms of bringing that new business to market, break down the economics, the case for why you are focusing on these commercial vehicles at least initially.

>> okay. so commercial vehicles have the highest utilization, and quite frequently commercial vehicles operate from a base, from a depot. so very high utilization vehicles running from a single location represent the most attractive use case for hydrogen because there is still some challenge in making sure there is hydrogen available for fuel cell vehicles on the road. by operating from bases, we build up highly viable hubs of activity you invest in underutilized assets, trying to build a national network to justify vehicle deployments is challenging from an investment standpoint investing to fuel hundreds of vehicles in one place, that is attractive the low-hanging votes are the back to basic operation option easy to find examples amongst our customers signing up

they are operating buses that go from one location and come back. delivery trucks. they are operating point to point logistics type vehicles. we think that our model is understood by our customers and those types of customers are on an increasingly urgent mandate to decarbonize their activities. >> craig, in your presentation this morning you say fuel cell trucking is already cost competitive. can you explain why that's the case, if it is the case? >> so, i think we talk about the fact that it's definitely getting towards cost competitiveness. i don't think that we can boast that we have the vehicles running on the road right now that are cost competitive in a total cost of ownership basis, but this is what the freet operators want that total cost of ownership to match or better diesel we are approaching that quickly. it has enabled by the build-out by hydrogen production at scale,

which is lacking today then we hit the -- >> that's what i want to understand here. i am reading from your presentation you said it's already cost competitive. when you say fuel cell costs will drop, explain what that cost curve will look like. >> okay. so right now the cost of the vehicle is higher than a combustion engine vehicle. in the next four to six years the fuel cell vehicle will be, even from a capital standpoint, similar to the cost of a combustion engine vehicle. the cost of ownership is going to be lower. it's lower because the maintenance costs are lower and because of the efficiency running on hydrogen is great and you get around five to seven liters of diesel operation equivalent, you know, driving for each one kilogram of hydrogen so that's why you can have a very competitive total cost of ownership even if the capital cost of the vehicle a little challenged you can get to competitive cost of ownership we will demonstrate that in the

next 12 to 15 months those projects are still confident. it is very competitive. >> craig, i realize your team has been developing this technology for a number of years now, but in terms of it actually starting to roll out to market we are in very early stages. this is probably a longer term question down the road, but hydrogen fuel cells versus lithium-ion batteries. folks like elon musk have smack talked the technology. is there room for both in the future when you look out and sort of thinking about where mobility is headed, or will one be greater than the other? >> frankly, we are not big bleefrgs in the either-or debate we feel fuel cells into those applications where i described a commercial vehicle that's generally heavy. quite often it has a payload imperative the more weight it carries, the more money the operator is making it has a payload imperative with a high up time every day

two or three driver shifts in a day these vehicles for these types of operations with a payload imperative, high utilization in, you know, heavy vehicles, we really think that hydrogen has a strong advantage and this will be proven over the next couple of years as we deploy those vehicles, as i said before, in multiple continents around the world to your comment about a longer term proposition, it's not really we will be deploying our first european built vehicles later this month, and we are already also assembling buses with chinese vehicle platform partners, and those buses will be shipping to australia in the coming few months as well. it's not a long way away before we will see small fleets start to-rate and people will start to understand better and see with their own eyes, touch with their hands and get more comfortable with the technology.

definitely we believe the high utilization especially those vehicles, hydrogen will win in that area. certainly, there is a lot of room for a lot of different technologies to play a part in transitioning literally billions of combustion engines off fossil fuel burning -- >> we have a parade of ceos of ev companies, some with battery technology telling us they are the clear technological leader you are saying the same thing, your cell is differentiated and you are the clear leader over your competitors why? >> lack, i if you want to look what's behind the promise look at the history, look at the credentials. if we look at the leadership team of a hyzon motors, 20 years in hydrogen. a lot of credibility in the sector major corporations are committing to us government agencies are committing to us a lot of these groups do a lot of homework, and we have a lot of credibility in the sector and the parent company, horizon,

you know, shipped 36 megawatts of fuel cell engines last year for automotive applications, mostly in asia, a little in europe that's a lot of experience behind us. and we bring our management style, our dna and the way we operate from building that core technology business for almost 20 years we bring that into this new business we think we have a lot to offer with a stronging in team, great technology and a fantastic team of experienced automotive management and engineers as well. >> what about your reliance on infrastructure to build out a network of stations where all of these trucks cantali charge? how long is it going to be until that actually exists >> fortunately, our 2021 shipments are all to customers that already have access to hydrogen this is mostly in europe, australia and new zealand. the u.s. we are a little behind

in terms of our own development and, frankly, the abivailabilit of hydrogen is behind some of these other geographies. we are making shipments this year and the hydrogen is there going forward we will play an active part in solving the hydrogen supply dilemma for the fleet operators. that's part of our future commercial model also. >> craig knight, thanks for joining us today. >> my pleasure thanks for having may. as we go to break, speaking of clean energy, blink, the official provider of ev charging equipment for the city of san antonio today. like many others in the space, stock has been on a tear, up almost 2,000% in the past 12 months more "squawk on e re" ntueafr the break.

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. ♪♪

regulators will launch an assault against social media this year. find out what it could mean for stocks in that universe on tradingnation.cnbc.com

more "squawk on the street" coming up. before we talk about tax-smart investing, what's new? -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪♪ we'd be closer to the twins. change in plans. okay. mom, are you painting again? you could sell these. lemme guess, change in plans? at fidelity, a change in plans is always part of the plan.

welcome back to "squawk on the street." i'm josh lipton. stocks nixed today with most s&p sectors lower, but notable outperformance in tech names biggest laggards this morning the energy sector. big oil and gas names like cabot, occidental, exxon among the worst performers fmc down more than 5% ahead of its removal from the s&p later this week. morgan, back to you. >> thank you. elon musk making headlines this morning, this time with spacex saying its broadband satellite business will go public eventually tweeting, quote, once we can predict cash flow reasonable well, starlink will ipo. it will need to pass through a deep chasm of negative cash flow to make that financial lie viable the possible of spacex spinning

off starlink was floated early last year by the coo but musk shot that down last march. >> chat well and bloomberg was quoted as saying that you were exploring splitting starlink from spacex. could you talk a little bit about that, why that would happen, and how you see both of these independent companies functioning and just talk a little bit about that? >> we are thinking about that zero. >> what? >> zero. >> zero? >> zero. >> not thinking about it at all? >> we need to make the thing work >> so clearly they are thinking about it spacex has now well over 1,000 small satellites in orbit. has been deploying them rapidly. we saw a launch last week. another scheduled for later this week beta service began rolling out last fall. it's expanding to different geographies across north america and other parts of the world like the u.k spacex disclosing recently it

already has 10,000 users the company has said that building it this constellation of tens of thousands of internet satellites could cost upwards of $10 billion, but, ultimately, starlink could be a $30 billion a year business, or to put that in context, ten times the size of launch services so the rockets that launch these satellites still huge risks because, as musk has pointed out multiple times, including last anytime on twitter, every other company that has done this or attempted to do this has gone bankrupt that goes back to to the '90s. nonetheless, there is competition. amazon building out project kuiper, ast and science going public via the new providence, spac which is up just 40% since the start of this year, and one web which went through bankruptcy last year is also re-emerged from that restructuring process and a competitor of course, amazon and spacex, carl, getting into a bit of a

turf war, if you will, about low earth orbit. in recent weeks as both of those companies build out their broadband satellite plans. >> that's exactly what i was going to bring up with you the more logs that musk adds to the fire, the more pots he has boiling, the harder it is to imagine him having to deal with a safety recall or some regulator in china and i wonder, now that bezos is going to have more free time to pursue space beginning in the third quarter, if that means that musk might try do the same. >> key questions we are going to have to see how it plays out with both of these men, i would say we know that for both of them space is extremely important and represents really their long-term life goals and objectives and visions that being said, i think the satellite spac that you have seen, basically the space real estate spat between both spacex and amazon in the last couple of weeks has played out pretty publicly where both companies

have accused the other of trying to squelch competition this has to do with the orbit, the proposed orbit that spacex wants to put some of its satellites in and that could conflict with amazon's plans really sort of speaks to the ongoing rivalry we have seen between the world's two richest men and it speaks to how piz e, how crowded space is becoming as we see tens of thousands of satellites quickly being deployed or planned to be deployed to start beaming some of this access, this internet access back down to earth. so connectivity, it's going to be something we continue to talk about. >> i can remember global star and meridian who is the end user here more enterprise focused or is it - >> it depends. great question it depends on the company. spacex is basically, has said and elon musk said in the last couple of years he sort of sees the service as an addendum or an

add-on, basically a partner to tele-cos to offer that service to offer that service to harder to reach area. it's consumers, local governments. but it depends which company you are talking about. everybody sort of is focused on different areas. ultimately, though, it's going to be for those consumers and those people within businesses as well that need connectivity in harder to reach places on the globe. >> got it. okay thanks yeah fascinating to watch rarely loses, mr. musk. don't miss cnbc's healthy returns spotlight updating attendees with up-to-the-minute information on the rollout of the vaccine. yeah, you will hear from the likes of johnson & johnson's ceo alex gorski about the rollout of the vaccine, for example walgreens rick gates register now at cnbcevents.com/healthyreturns.

don't have long. get it done. hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions

for online u.s. listed stocks. don't get mad. get e*trade and start trading today. when you've got a business, you don't want to worry about slow internet or confusing cybersecurity. so get comcast business internet with fast, reliable speeds, and add the advanced security

of comcast business securityedge. it combines the speed you need with threat protection. plus there's 24/7 support. it's internet and advanced security - made simple. so bounce forward - with comcast business. get started with a powerful internet and voice solution for just $64.90 a month. and ask how to add comcast business securityedge. call today.

take a look at gamestop this morning. below 50 in regular session trading. the first time sub 50 since january 22nd, tafd if you are looking at the share price alone, it's almost 0.1 of the intraday high of property.

>> it's a life long new yorker, somebody got here in the 70s you got the potential of revenues higher taxes, programs, and a continued flight of people as quality of life continues to decline. so who wants to step up and buy into that possibility? >> well, it's good you ask it's the millennial buyers that finally stepped up to the plate.

they reflect 28% of the buying pool out there and we as real estate workers in manhattan have been waiting for quite some time to show up what we learned is they were not interested in buying the postage size apartment at 500 square feet so maybe about 550,000. they waited. they're quite smarter than we give them credit for they waited. they've saved some money they waited for the opportunity. because they know the market is at almost a historic time low and the rates are at a historic low time so the opportunity is now. they are coming out and buying and there is a lot of the center of the population there. >> i agree with that sorry. go ahead >> no, go ahead, i was going to let you finish that thought in the few second we have left. >> i think it's, as john said, this is the best opportunity market i had a friend text me this morning who said, should i buy i said, this is the best time. rates are low. there is oversupply, sellers are

reasonable it's a great time to take advantage of new york city's prices and it's the best city in the world. my opinion >> there is no doubt about that. all right. thank you, good to see you both. a lot of best. we appreciate it so much appreciate it. take care. >> thank you. us millennial's are so smart. we are after the break, an exclusive with qualcomm's ceo, "squawk alley" begins in two minutes. don't go anywhere.

- [announcer] grubhub perks give you deals on all the food that makes you boogie. (phone dinging) (♪ singing in foreign language ♪) ("2 phut hon (kaiz remix)" by phao) ♪ get the food you love with perks from-- - [group] grubhub! - grub what you love. keeping your oysters business growing has you swamped. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo ready to shine from the inside out? try nature's bounty hair, skin and nails gummies. the number one brand to support beautiful hair, glowing skin, and healthy nails. and try advanced, now with two times more biotin.

good morning it is 8:00 a.m. at qualcomm headquarters in san diego. it's 8:00 a.m. on wall street and "squawk alley" is live ♪