& johnson jab. triple j it happens today friday, february 26th, 2021, that means march is coming "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. and we're going to start like we always do with the markets, especially after yesterday's selloff. the dow was down by 559 points during the session that was a decline of 1.8% it slipped from a record high. in fact, we were almost at 32,000 the session before that you ended up closing at 31,402 yesterday. and by the way, the dow was the best performer out of the three major averages the s&p was down by about 2 1/2%, and then the nasdaq's loss of 3 1/2% was its worst one

day selloff we've seen since october. lots of stocks down across the board. you were talking about declines of more than 3% for alphabet, for facebook, for apple. tesla was down by 8.1%, and microsoft was off by about 2%. it's big declines across the tech sector. again, you can see it was down by just over 3 1/2%. this morning, if you take a look at things, relative calm, you're not seeing some big come back that's being staged but the dow futures down by only about 31 points nasdaq down by about 26. s&p is higher but only by about 2 points in the futures. treasury yield is the big reason for this joe was talking about that we have been watching these treasury yields so closely yesterday was a big day. moved above 1.9% for the ten-year, and that's something that had not happened for a long time a quick move, and right now, the ten-year is yielding 1.468%. the other thing that happened is the two-year and five-year,

those picked up too. it's been the long endrising more rapidly, but the two-years and the five-years, that's the area of the market that you expect the fed to have more control over that started picking up a little bit yesterday, too, and that's guys, the real question that people are out there starting to talk about at this point is the fed going to be able to rein this in to keep rates from climbing higher. the consensus call was 1 1/2% for the 10 year, that was expected at the end of this year, and we saw this yesterday. joe, go ahead. >> yeah, by the end of the year, and it's february. >> and here it is. >> quickly calculated that monday is march. monday is march. >> right >> march 1st because i think last year was a leap year. we have elections during leap years, presidential elections, people kid around, this person only votes for, colin powell, he votes for democrats during leap year for president, when he said he was voting for -- it's funny.

but leap years are when we happen to do that. i quickly deduce, it's 29 days in a leap year, right, and so 28 makes that sunday. so this is news you're not going to get a lot of different places we are going to have paul hicky on a little bit later who points out, guys, and andrew, you remember the financial crisis, you wrote something about that you had a book or something. the average year since that on the ten-year has been 2.3%, and the market has gone up mainly when yields are rising, so he's going to make that point so i don't know what d-- the market is looking for an excuse, everywhere, spacs, bitcoin, ipos, tesla, gamestop. is it really a surprise if rates start going up that that whole thesis, at least people will take a step back and say maybe i'm going to -- >> but the markets also in this crazy position of arguing that, oh, no, the economy is growing

so quickly, yields are picking up oh, no, time to panic. you're talking about growth forecasts for the second, third and fourth quarter i think bank of america for the second quarter has a growth forecast of 8% for gdp they're anticipating 11% in the third quarter and 5% in the fourth quarter that's phenomenal growth and that's the type of thing, the stock market says fantastic. big growth, but they're worried about the bond market's reaction to this, and for so long, we have had this tina trade, there is no alternative, no place to be, except for stocks. if all of a sudden the bond market looks more attractive that you can get better yield, that might take some of the steam out of stocks and put it in the bonds >> you could think the economy could power through 1.6, 1.7, 1.8, could power through at no problem, but what about the perception of stocks that's the thing the reopening trade is going to be real with travel and, i mean, eventually, travel, people going out, restaurant, that's going to

be real for the underlying economy but the markets move already anticipated that. >> a long time ago. >> rates might be what the excuse is. a lot of people have said that remember jim paulson said once we reopen, we could do 10, 15% pull back before, you know, maybe a better end of the year who knows. who knows. but does anyone understand gamestop i know you're going to talk about that now >> let's take a look at it >> do not talk about the valuation of this thing. just stop, will you? let it go, man let it go. what's wrong with you? let it go. >> put it to the suits just give it to the suits. that's what i'm going to tell people to do go after the suits and win beat them. beat the suits at their own game. >> someone would have told me that suits were bad, i wish, you know, but i'm a trend setter

i've got the lululemons. >> you guys haven't been wearing suits for years. shirt and ties. >> we're cool in our own ways. >> yeah, you're cool let's also take a look at gamestop as we have been talking about this up by 8 1/2% this morning. 118.01 trading price we had seen it above 150 yesterday. the selloff yesterday, even with that, it's still up more than 180% on the week other reddit hyped stocks this morning, if you want to take a look at what they have been doing, not all of them taking off in the same way. right now, amc, nokia, blackberry, and koss all trading off down by just over 10%. andrew >> thanks, becky meantime, today could be a crucial day in the fight against the coronavirus, considering the j&j vaccine. they could receive approval as soon as tonight. the fda is easing temperature requirements for the pfizer vaccine. the treatment had previously

been required to be stored between negative 76 and negative 112 degrees fahrenheit the fda says the vaccine can be stored at standard pharmacy freezer temperatures for up to two weeks. president biden spoke yesterday to mark a covid milestone. he said 50 million vaccines had been administered in the u.s., putting the administration on track for its goal of 100 million vaccinations in a hundred days, guys, but at least i'm hoping we're going to get more than 100 million doses in a hundred days some people thought that goal was almost baked into the cake >> right a lot of conjecture about how it's been done in different states i saw the west virginia governor sort of taking accolades for how well west virginia has done, and the argument is do you do it with just age or do you try and do it some other way, and i think they just purely did it

with age we talked about it before, someone walks by, you ought to, you know, throw a dart anybody that's near. anybody that's near should get it >> i don't know, i would like to see age go first i'd like to see age go first. >> but if the supply is there, and it's not being used, because you don't have enough people of that age there >> we're not to that point yet we're not to that point yet. it's frustrating to see, you know, places like new jersey, i know all kinds of people who are in their 30s who have said they're smokers who have done other things to get the shots. my mother-in-law is 77 in maine, she's supposed to get her first shot today, but it's been quite a haul to really get that appointment set up >> totally different depending on where you are. >> some states are doing -- but we don't want everyone eventually, that's the best way to do it, if you got it, give it to people. >> totally agree if you can get a shot, take it,

absolutely but it's frustrating and the thing is, you put it in perspective, we're actually doing so much better than any other nation in terms of this. any other big nation we've got almost 20% of our population having at least one shot at this point, maybe it's 19% or something right now if you look at europe, it's 6% we are doing a better job relatively speaking to other big nations. it's just, it's one of those things that if you lose your job, it's a depression right. if you've got the shot, things are going well it's completely your perspective based on where things are. >> one's pretty good, and. >> right >> we'll hear about j&j today. >> the other issue we've talked about a lot is this $15 minimum wage all along people said it wasn't going to pass the so called bird rule, and it gets a birdbath and that's apparently what the parliamentarian said the minimum wage is off the table in the senate, at least for now, as part of the

president's $1.9 trillion covid relief plan. we talked about this ylan. ylan mui joins us with more. we were jumping the gun trying to figure out who was a yes or no before you found out whether it could be in the bill in the first place based on reconciliation. >> that's right, joe the white house clearly have been pbracing for this decision. it was a big blow to democrats when they found out last night that they cannot raise the minimum wage as part of their covid relief package because it does not comply with the rules to pass legislation without republican support democrats are regrouping sings the rules only apply to the senate, house speaker nancy pelosi says she plans to move forward today with a vote on the version of the bill that includes the $15 an hour rate, and she says democrats will pursue every possible path in the fight for 15 meanwhile, progressives say they're ready to go nuclear. they're pointing to the real problem, they say, which is the

rules, and urge party leadership to either ignore the parliamentarian's decision or get rid of the filibuster. and senator bernie sanders, one of the chief proponents said he's going to get creative he's working on measure that would get rid of tax deductions for big businesses that don't pay $15 an hour, and plans to push for that to be included in the final bill instead the fight is still not over yet, guys >> a lot of big companies already pay 15 i don't know what he means by big. and some of the small companies that wouldn't work for anyway, so what are the chances of that succeeding, ylan >> not very high of that actually being included in the t final bill he's proposed things before, the stop walmart act that would have prevented companies from buying back stock unless they paid $15 an hour. he had a stop bezos act where he

had the beef with amazon that would have forced them to pay for some of the government services that he said their workers were using he has support in the progressive movement for these ideas. it would definitely comply with the bird rule that you talked about earlier. i think that in some ways, you know, having the parliamentarian make this decision actually was a silver lining for democrats because it allowed them to avoid that sort of interparty bickering over whether the rate should be $11 an hour or $15 an hour or be included at all >> costco announcing today they're going to 16 or something. costco has been out in front of things, i think. i didn't see this in the prompter but i had seen it earlier. now it's one of my stories, ylan i shouldn't jump the gun just what they tell me to do, i should just do i'm going to stop all this other

stuff. costco isn't waiting for a government order the retailer is raising its starting wage for hourly workers to $16 an hour that's more than rivals, including amazon, target, walmart, best buy. and the higher pay rate takes effect next week that's been happening more and more, becky, where i start saying something, ad-libbing and it's in the teleprolmpter and i got to say it again. >> great minds the control room is actually cheering. >> i'm not going to go off topic. >> the control room is cheering, joe is not going to go off the rails. >> someone said they wanted it in writing. >> they've got the tape. play it again and again, guys. >> fine. fine >> right we'll see how long this lasts. you couldn't if you wanted to. you couldn't it's impossible. anyway, we are learning more about at&t's -- >> let me just say this. >> go on i'm kidding. >> one, two, three seconds

we are learning more and more about at&t's deal to spin off its new tv unit into a new company. it's going to be selling it stake in its direct tv at&t tv, and u-verse businesses to privet equity firm tpg, jointly owned and run by the partnership. this transaction implies an enterprise value of $16.25 billion and remember, at&t acquired directv for $48.5 billion in 2016. it was more than $60 billion when you include the debt. in this new company, it's going to be 70% owned by at&t. 30% owned by tpg i spoke to john stevens the ceo of at&t, and david trujillo to talk about how this came about why they're doing it john stevens said they looked at a lot of different partnerships, but this was the one they thought would be the best one. i asked why tpg, he said because they have the lot of experience in carving out smaller units

from big public companies with ibm, intel, pfizer and humana, and they have worked in a lot of areas. if you talk to david trujillo, they have this in their transactional dna. they currently own spotify, and they've got interest in calm, too, that app, so they feel like they play in this area, and talking to them about what they're going to be doing with this, david trujillo said a lot of this is blocking and tackling, operational things you want to retain your customers because the customer you have is the cheapest one to get. a business that has 17 million subscribers, but obviously that subscriber base has dwindled, you have seen it rapidly drop, which is why the value of the company dropped over this time since they bought directv because it has been so much the focus on streaming that you have seen with these companies. that's still the focus with at&t, dealing with hbo max talking about this, and what this will mean

for at&t, it means they will be paying down debt they're getting $7.8 billion, using that directly to pay down the debt, and we'll see what happens with this as they move forward. again, there's a look at&t shares, to $0.21 >> take your medicine, and fay down debt with whatever you can get for it moving into streaming, working with hbo max to some extent, don't you think? i don't know if you call it losses -- >> this is a melting ice cube and you're going to milk it for cash i assume tpg thinks they're milking it for cash. that's the business, as long as you can. by the way -- i was just going to say, aol was milked for cash. >> yeah. right. stanky said that this doesn't preclude another deal getting done down the road but said if

they do, they've got 70% of whatever the next deal might be. tpg thinks operationally, they can do a lotover of things, tr figure out pricing, making it easier through billing systems and different things, that's kind of going to be their focus at least for now with it. telling me we got to go. so i'm going to pose a question. >> and you always listen, joe. >> yeah, i do. coming up, what do these four companies, these earnings movers have in common, rocket companies, etsy, carvana and door dash. >> i know. >> you know ahead the prompter, what. >> they're all on "squawk" today, i read the guest list. >> no way. so you did know. >> good for you. their ceos are all on "squawk box" today to break down their quarterly reports. first on cnbc, carvana, is that the one with the big vending

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markets tumbled as the ten-year treasury hit a high microsoft lost more than 2%. alphabet, facebook and apple each losing more than 3%, while tesla lost more than 8%. joining us now to put the selloff in perspective is liz young director of market strategist at bny melon investment management and a cnbc contributor, and paul hicky, cofounder of be spoke, investment group, and sorry, liz, i already mentioned paul earlier, his ears might have been burning, were you watching, paul did you stick your chest out with pride that i already mentioned a couple of your points good job >> yeah, so you took the words right out of my mouth there.

since 2009, the average yield on the ten-year treasury has been 2.3%, and we're now at 1.5%. i think you can really see the market handle higher rates sure, we got here in a rapid pace and that causes temporary dislocations in the market and people have to adjust, but overall, i think the market can withstand this, and it's an adjustment process we have seen three other period since 2009 where we saw a rapid steepening of the yield curve like this, and as -- just around this point when the yield curve steepened over 75 basis points in six months, you saw a short-term period where the market pulled back 5 to 8% saw it in june 2009, saw it in february 2011, and then you saw it in august 2013. i think in that respect, this wouldn't be -- this isn't to be that unexpected. >> liz, i don't think you disagree

in fact, you're saying embrace the volatility, it was to be expected if rates rise a little, and the power of the reopening is going to insert itself and you think that things like this should be used to add to the positions that you're recommending. >> yeah, i think we have to look at it from a perspective of the market can withstand this in the sense that there's probably a short-term pull back, and i don't necessarily think it's over there's likely more to come. i don't think the rate rise is over, but rates should be rising and if we're expecting an economic expansion, we're expecting a resurgence of demand, rates should go up inflation should reinflate different sectors of the market should win this is a transition we're going through, and that's why i say embrace the volatility we have the little correction, and we move forward, and i think the market can find its footing on the other side. we have to hand that baton from the regime that we're in to a new regime of economic fundamentals that are hopefully

better at standing on their own 2 feet beyond the pandemic, and that's something that we're expecting to see more in the second half of the year. >> well, it sounds like you're maybe recommending a slight shift away from growth in some of the leaders that we have seen in the stay-at-home sector now are you remcommending value or cyclicals or something? >> like everybody else, i do think cyclicals have a good landscape here to perform well through 2021 but i wouldn't abandon growth? i think it was a pretty classic sell off yesterday, and i think it's to be expected as rates rise, growth suffers, as rates rise above the dividend yield of the s&p which they did intraday for a minute yesterday, the entire market sees a little bit of a correction because people are wondering if there is another alternative. i do think that growth stocks can continue to add to returns throughout the year. it won't be as big of a dispersion as it was last year, but they will continue to add because our economy is

different. our economy is still driven so much by growth, and so much by technology technology has its tentacles in everything growth is not going to leave the picture. it just won't be the big standout like it was in 2020. >> the bitcoin community got really excited when the oldest bank in the country said it would start, at least get into the fray a little bit. was that your decision, liz? >> i wish i could say that i had that much power. we were excited, too, just to hear about it. that was a big step. >> paul's behind a curve here. you said nothing about bitcoin liz is the oldest bank in the country. what's your problem? >> hey, i mean, we have had a small position in bitcoin. it's actually grown a lot since last summer, but i think from a slightly contrarian perspective here, i think a lot of our

overall market views are in line with liz, but a slightly contrarian perspective in the short-term, i think treasuries which we have not been in favor of for quite some time are positive risk reward, they become so jooversold the long-term treasury etf had its second highest volume day ever going back to 2003 the highest volume day was march 6th, 2020, right as we saw the peak in the treasury market during the covid selloff, and one of the low points in short-term yields. i think the positioning, people have gotten a little bit extreme on selling treasuries here, and from a short-term perspective i think you could get a nice move. >> you just punted totally and changed the subject. i had liz going on that, and i was just kidding bringing it up, just because bny melon, i don't know, maybe that's just another data point people have been using to explain things. liz, thank you for playing

along. paul, thank you for sending me on my talking points so i knew what to say beforehand >> anytime. >> anytime all right. we'll see you later. thank you. becky. >> that's joe. just read the prompter and follows the notes. when we come back, a shark tank style competition to fight heart disease. that's coming up next. as we head to a break roigt n right now, shares of salesforce, earnings of $1.04 beat expectations of the $0.29. the full year earnings forecast came up short as it factored in the impact of acquiring squawk stock is off by 3% they acquired slack, not squawk. we're "squawk box," we'll be right back my retirement plan with voya keeps me moving forward. they guide me with achievable steps that give me confidence. this is my granddaughter... she's cute like her grandpa.

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heart disease claimed more than 2,000 lives a day last month. it is the leading noncovid cause of death in the united states. the american heart association is using an unusual strategy to crowd source treatment ideas from communities hardest hit by the disease. here's sharon epperson. >> it's the most accessible and affordable cpr training ever. >> a virtual shark tank competition for social entrepreneurs. pitching ideas from products and services outside the traditional health care system to help fight heart disease and stroke. >> eliminating the stress, health risks and potential harm associated with soiled medication. >> and win up to $40,000 for their start ups from the american heart association >> what we're seeing in our communities is that there are real problems, access to food, housing, education, transportation, and access to health care. we recognize that there are lots of innovators working in

communities across the country who have novel ideas and novel solutions. >> from a ceremony app that offers cpr training you can do at home, to a device maker trying to minimize complications in manual ventilation for patients to a tech start up with a personalized cooling system for temperature sense township medicines. during aha's business accelerator program, called empower to serve, some competitors become colleagues. >> it's just a very validating and encouraging environment. because everyone's working towards accessibility and epi equity >> cofounder and ceo abigail color says her company has big plans for the $40,000 grant. >> we're going to use some of the money to translate the entire program to make sure that it's really usable for everybody. >> reporter: i moderated this finale of the competition, and it was so exciting to see

abigail's face when she won. the aha is a big winner. having a mobile app to practice cpr, translated into several languages will allow the organization to build on the p guidelines and training that it already provides, becky. >> it's a really clever idea and a good way of getting some new ideas. how long have they been doing this competition, sharon >> reporter: its business accelerator program started in 2018, and since that time, the american heartassociation tell me they contributed more than $510,000 to help start ups, social entrepreneurs and organizations improve health equity in their communities. >> you see a bunch of good ideas. it must have been just really interesting to play it out. >> reporter: it was so interesting to watch it, and it was so interesting to see how they're really tackling issues that are affecting their communities in boston, atlanta, san francisco, san juan, puerto rico, they were from all over, and so those judges had really tough decision to make to come up with a winner there, but

american heart association intends to stay in touch with all of these organizations because again, they have fresh ideas and they need them, and the community needs them as well >> cool story. thanks, sharon >> sure. >> okay. coming up on the other side of this break, whistleblower going -- we're going to get you up to speed at earnings movers, rocket, ettsy, carvana, doordas, we'll have interviews with the ceos of all of those companies later on and the market's winners and losers, we're back after this.

good morning, welcome back to "squawk box." take a look at u.s. equity futures because we're in the red again this morning, down 131 points, nasdaq off about 58 points s&p 500 right now off about 9 points we should tell you that doordash shares are plunging right now. the food courier reported a loss of $2.67 per share in its first

report as a public company it cited ipo related costs and stock based compensation that stock close to 10%, 9 1/2% right now. company warning it expects to see a decline in consumer engagement as the u.s. gets the virus under control. this has been the question, whether in a post-vaccine world, what the world looks like. the company's ceo will join us at 8:40 a.m. eastern time. a conversation you don't want to miss coming up, though, we've got investor, mike novogratz, he's going to way in on the companies adopting bitcoin, the rising retail traders and, we'll talk yesterday's selloff. he spent most of his career as one of the great macro traders we'll talk about where we stand and what the ten-year means for the market you can watch or listen to us live anytime, or right this moment even on the cnbc app we're back in a moment

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welcome back to "squawk box," a live shot of times square right now. beyond meat announcing new deals with mcdonald's and yum brands and will be the preferred patty supplier for the yum burger, working with yum brands to make exclusive menu items for kfc, taco bell and pizza hut over the next several years first dipping on a bigger than expected loss in the fourth quarter, citing high costs on global extension and weak restaurant sales, and rising when the news of those agreements came with the fast food giants was announced. you're looking at that stock up pre-market about 3 1/2%. check out nikola shares, they're under pressure this morning. company posted a smaller than expected quarterly loss. the ceo said he expects to deliver 50 to 100 battery electric trucks this year. that's down from an earlier estimate of 600. he warned those deliveries would come with hefty negative margins as the company scales up

production in other news on that company, an internal probe finding that nikola and its founder, trevor milton made inaccurate statements about his technology. this is notable because until now, the company has denied misleading communications with the public the internal investigation following a report by short seller, hindenburg research, accusing milton of misleading investors. the doj opened inquiries. futures in the red right now, you're looking at 160 points off on the dow, nasdaq down 86. s&p 500 off about 14 points. it's getting a little bit worse in the last half hour. we want to check the move on ten thf year because all of this is so very related right now. you're looking at the ten-year note at 1.480. we had crossed the 1.5 mark. the question, of course, is do we get to the 1.6 or higher mark our friend rick santelli

yesterday thinking or saying that he believes there's a demarcation around 16 in terms of where you get to next we'll see what happens but we've got mike novogratz who we're going to be talking with in just a little bit, hopefully after this break, one of the famed macro investors before he became a bitcoin investor. we'll talk about bitcoin and gamestop with him as well, becky. >> thanks, andrew. also when we come back, online car retailer, carvana, one of the stocks up big since the start of this pandemic we're going to talk to the company's ceo on the surge of virtual car buying, and break down its latest earnings report. that's next. plus, another big ceo call, we'll be hearing from josh silverman of etsy on the retailer's blow out quarter. ne, we all get together and support each other. that's the nature of humanity. ♪

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welcome back to "squawk box. futures getting worse, declining steadily over just the last half hour we're looking at the dow off 117 points joining us now is billionaire investor, mike novogratz, i want to talk bitcoin, gamestop, all of that. you spent most of your career as a macro trader i want to get your sense of what we're seeing with the ten-year, and the equity market. >> this is a readjustment in rate expectations, you know, chairman powell keeps saying we're going to keep rates low forever, and all macro traders are looking at, you know, a 7% gdp growth this year, maybe higher same in china. inflation picking up and saying it just doesn't make sense, and so making a big policy mistake but the market is not going to let them really for the first time in a long time, and now the market is a bit broken today will be real interesting i think we're in ranges probably of 120, 170 in the ten-year, right in the middle of it. my sense is you're going to test the higher end of that yield

range just because when markets break, you don't get put back together in one day. it's going to cause volatility, spill over into the equity market you probably have a sell off in the equity market coming probably not as dramatic, because a few weeks we get the stimulus checks and there's a whole lot of money in the system i think we're in the midst of learning to trade what will be looked back on as a policy mistake. lots of people can make money when the fed is willing to lose it. >> the policy mistake being what the fed has already done or what the fed is about to do >> i think we're going to keep rates so low and we're going to continue to fund this big deficit. it's a difficult gig when we have inequality the way we have it what do you do, but the medicine that the government seems to have might make things worse, not better and i think, you know, why bitcoin has done so well this year, it's why lots of assets done well.

the rich people keep making money, who's losing. the government. >> you have been a big proponent of raising the federal minimum wage standard. that doesn't look like it can be done through reconciliation, but costco went to 16 bucks today. i've been -- a lot of people have asked me to ask you this, and i haven't had a chance because we've had other things to talk about, but you go your bojangles sign up there, do you know what the average hour pit that you pay at bojangles is do you have it on the top of your head? i looked it up today is it $8 an hour >> tho, it's more than that, but it's acceptable not where i want it to be and i have been working with instinct, and pushing them i don't own the company. i'm a shareholder, and a large one, so you know, all of these companies have been in this -- all the quick serve restaurants, most of the big box retail have gone now for 15 years paying less than minimum wage, and quite frankly, less than a living wage. >> bojangles, a manager makes $12 at bojangles

i'm just wondering, at the same time you're talking about it, you could make a difference yourself, i think, like costco >> you can bet i am trying to make a difference there. i am on with management all the time trying to shift the -- shift our wage policy. >> i don't own the company. i'm a big shareholder. >> hey, mike, can we talk a little gamestop here what is going on here? do you have a sense? i'm spending too much time on reddit trying to make sense. i've almost convinced myself the conversation is not happening on reddit, it's happening somewhere else i don't even see it. this one is a lot less understandable to me and i've got to be honest, it's frustrating me >> yeah, listen, i've got a bunch of phone calls, i did the same thing i searched not near the energy on reddit, not near the energy on twitter it seemed like a mystery short

squeeze. i sold a little for fun up at 160 thinking that, you know, stupid things don't make sense in the long run and traded it that way but i don't have a great answer for you. i do think there's still the remnants of, you know, we have less liquidity in the system and we'll get more liquidity with the stimulus checks. >> but do you buy into -- jim cramer has this sort of pie in the sky idea, he says it's speculation, that somehow you can turn the company into like a bitcoin -- some kind of -- >> no, i don't i would defy the bank who's going to underwrite gamestop at 1 p 160 or 200 show me the underwriter and i would be more interested in it. >> finally because everyone on twitter seems to know. is that a mushroom on your

sweater there? >> yeah. i invested in compass pathways, day one investor in compass, which is a mental health company using this to work on depression of mental health issues. >> this is not a psychedelic thingthat the bitcoin communit is taking and it explains why bitcoin is where it is today >> you know, ciliciben for mental health is a big deal. >> okay. we appreciate it, mike good to see you as always. becks, i think i need some mushrooms right about now. >> it is friday, right thanks, andrew. online car retailer carvana has been a pandemic darling. up more than 140% last year. valued at $45 billion. its market cap now rivals some automakers like ford, honda and

stelantis. it is down in some premarket trading after the company's fourth quarter report. it's down 1.4% revenue beat expectations and retail units that were sold were up 43% over a year earlier joining us right now to talk more about it is earn any garr see -- ernie garcia. this is an interesting story made much more interesting by what happened over the course of the last year. we'll get to the earnings but i want to start with the shareholder letter you talked about the improvements in spite of the difficulties of covid. i'd argue it's almost because of covid. people looked at carvana in a whole new way when they realized they didn't want to be in contact with the dealership. it might be easier to buy a car online i know it was tougher to operate during these times but how much do you think you benefitted from covid changing people's minds? >> sure. i think there's a lot there.

the business we try to build, it has a completely new supply chain and i think what we're able to give customers is a better selection, better price, better experience. i think those things have always been attractive. r in the direction of trying new things i do think the business probably has more demands today than it would have had absent covid but i think the business itself was on the same trajectory regardless and the psychological levels shifted faster. >> so what did you have to do differently in terms of operations how did you streamline or maybe pivot to deal with the changes that covid brought >> sure. well, so i think basically our adjustments to covid were much more dramatic than many companies had to make. we came in on growth footings. for three years in a row we've been the fastest growing automotive retailer ever so we were growing really, really

quickly. the pandemic hit and everyone pulled into a defensive position no one knew how that was going to play out. that was a tough transition for a growth company planning on a huge growth year probably a month and a half give or take later after we got into may, stimulus checks came out, demand came back and psychological shift where customers wanted to buy more online we had to rapidly pivot in the other direction and prepare for rapid growth which we've done a good job of. >> let's talk through some of the numbers. revenue was better than expected units sold, cars you sold were up 43% if you looked at the revenue number it was up even more than that i think 65% at one point 8.62 billion. gross profit before some of the other items was $243 million that was an increase of 71%. if you look at the numbers, you were making more profit off more revenue off more cars sold that's the good way to do

things it is a pretty thin profit margin how do you tackle at that? what do you do this coming year? >> sure. so, i mean, i think as you said, it was a ton of progress i do think that in automotive retail you're selling a pretty expensive item the margin is less than some other verticals but not much less than the other retail verticals. pretty much in line with what you see in many other retail verticals. we're extremely excited by that. as you look at the gross profit, you see even more growth that's because we're growing in units and the way we're monetizing the transaction we're excited about that that growth continued. heading into january a pretty amazing result we grew by 80% with half the inventory. there's clearly a ton of demand for our product right now. >> do you think that demand continues after things open up again and people can get back out there? do you think you'll have some new customers and you'll continue to pick up customers at

a rapid pace >> so i think every business needs to build a business better for customers. i think getting customers to change their behavior is very hard the pandemic was helpful in that adjustment to trying something new. when customers try something new that is fundamentally better for them because they have a better price, better experience and they stick with it our job is to keep growing experiences and the growth will grow. >> ernie, thank you for your time and hope to see you soon. >> thank you we appreciate it. >> thank you. folks, there's been pressure building on the futures this morning. dow futures down by 140 points we'll talk more about this when "squawk box" comes right back. all the things, all around you

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stocks looking to wrap up a rough week as the continued rise of bond yields sweeps investors. the latest on what you can expect is straight ahead hedge funds on the defense as traders are taken on another wild ride. how they're trying to figure out buy signals from the reddit crowd. when will vaccines be ready for kids dr. scott gottleib has a pediatric trial and the fda hearing on the johnson & johnson vaccine. second hour of "squawk box" begins right now.

good morning and welcome back to "squawk box. i'm andrew ross sorkin along with andrew quick -- becky quick and joe kernen the dow is off by about 8 points nasdaq off 73 points some of this the earnings report we're seeing in expectations for some of these companies in a post vaccine world we'll talk about that in a minute here's what's making headlines in an hour the fda will allow pfizer's vaccine to be stored at normal freezer temperatures for up to two weeks. it's going to lessen the dependence on freezers we're also following shares of electric vehicle maker nikola this morning they sound that founder trevor

millkin made several inaccurate statements about the company he denies making inaccurate communications to the public this is a first in terms of the disclosure the so-called red dilt rally in retreat gamestop continue to move higher could wind up tripling in value. other stocks involved moving lower in pre-market action blackberry, amc and koss joe? >> thanks, andrew. i liked where you were going for a second with novogratz. when he said very innocent when he said cilicide furks go to school in the '70s. he immediately said, yes, i'm talking about what you are referring to i like where you were going there. he said does that explain "the game" stop trade right? >> you know, i eat a lot of mushrooms in my salad. >> he's not talking about those. >> i know. i know >> honestly, i thought he might

have a food -- but i said, i wonder if novogratz, who's -- he's out there a little bit, but i wonder if he really has invested in a psychedelic mushroom company, which as you heard, can have therapeutic uses that's why -- >> by the way, we should talk about psychedelics. >> we should. >> it is the new thing and people are investing in it. >> it is >> there are all sorts of new science around it. >> you know, colorado in the '70s i saw people i saw people that knew something about people who knew somethin about that anyway, let's go on to elon who's like waiting the house planning to vote on the $1.9 trillion rescue plan later today. ylan joins us again now. good morning again >> reporter: good morning, joe the house is going to vote on a version of the bill that still includes the $15 an hour minimum

wage even though it has to come out once it hits the senate. democrats found out they cannot raise wages in this bill because it would violate the special rules they're using to pass the legislation without republican support. in a statement the white house said president biden is disappointed in the outcome but that he respects the parliamentarian decision and the senate's process he vowed to determine the best path forward saying no one should work full time and live in poverty progressives argue that the move highlights how outdated the senate's rules are and they renew their rules for getting rid of the filibuster. republicans celebrated this decision as a vindication of the senate decision. lindsey graham called this an inappropriate policy change and they shouldn't flout the process. i'm told by a source that democrats are still waiting to hear whether pension relief and certain types of health care subsidy are included in this bill as well i'm also told that another

potentially problematic decision, state and local aid, will get the green light andrew >> thank you for that, ylan. appreciate it very much. joining us by phone with the president's plan, brian dies is here good morning to you. thanks for joining us. let's talk about this minimum wage issue and where the stimulus bill stands right now in terms of the minimum wage piece, where do you think it heads at this point? how do you think it's -- how quickly do you think you're going to be able to get past na ultimately >> well, we're going to have to -- we're going to have to consult with congressional leaders today to figure out the best path forward. obviously the ruling was not what we were hoping for. we were disappointed by that, but we are respectful of the process and we're focused forward and we're going to consult with leadership today

and figure out the right path forward there. and today we're going to see hopefully action and we'll see the house move on the american rescue plan and as you've heard us say over the last couple of weeks, it's important, it's urgent and we're going to keep our focus on getting that done today. >> on the minimum wage piece though, do you see a compromise in the future? is there a different number you saw mitt romney come out with a $10 number >> well, the first thing that i think is important here for context is when we talk about a $15 minimum wage, certainly the president's proposal phased that in over time so we are not talking about going to $15 immediately, it would be something that would get phased in consistent with prior practice we've seen that that can be done and it can be done without meaningful impact on employment. so i think the -- that's

certainly the president's position, is that $15 an hour is long overdue, highly justified we've seen that in -- across the country, we've seen states go there. florida earlier this month, passed the $15 minimum wage. that's where our focus is going to be but, you know, this is a conversation we're going to have to take forward. >> brian, progressives want the vice president to get involved she is -- has the ability to overrule the senate parliamentarian. i know that ron klain already weighed in on this and said that was unlikely is that your understanding >> no, the vice president's not going to weigh in. the president and the vice president both respect the parliamentarian's decision and the process. we don't agree with it we're disappointed by it, but we'll respect that process and our focus now is going to be to get with congressional leadership, determine the best path forward for the minimum wage and at the same time move

quickly to get the american rescue plan passed >> brian, i wanted to actually ask you about another comment mitt romney made in the wall street journal earlier this week he was looking through the cbo' estimates saying $700 million won't be spent until 2022 or later. do you agree with that assessment by the cbo? perhaps more importantly, if it's true, is it right >> well, so if you look under the cbo's assessment they go provision by provision and make estimates of the spendout. there are a number of places where we have a different perspective, for example, on the money that we would target to k-12 schools we have done a lot of work, bottoms up, looking at school districts and looking at their need and our assessment is the spendout of that money would happen much more quickly because of the magnitude of the need

over the course of this spring into the summer for supplemental learning and over the course of the fall so there are a number of places where having done the work and engaged with the ultimate recipients and beneficiaries of the resources that we think that we'll spend down more quickly so we have a different perspective on that. >> the other piece i was going to ask you is about the money that's going to states, $350 billion to states and municipalities jpmorgan finding 21 states have revenue increases in 2020. so how will that money be distributed? >> well, the current approach in the house bill is wasted on economic need so it's a principle driver in the formula is the unemployment rate at the state level at the end of last year and if you look at state budgets, certainly there's a dispersion a difference across the country. some states are doing okay some states have been hit very badly.

the other important part in the way in which it's distributed which is different from past bills is a significant portion of the gap would go directly to localities, including localities with less than 500,000 residents. one of the things we've heard from mayors and county officials is getting that -- getting those resources directly to the localities, directly to the municipalities is pretty important because even some states that have seen revenues surpass on the up side because of state taxes, you've still got real challenges at the local level. that's one of the ways in which that targeting of these resources would be addressed >> brian, the president's going to be meeting with the airline executives today in large part to talk about climate issues and carbon reduction clearly the airlines havebeen decimated in terms of their own economics. what kind of -- what is the president going to be telling them and what kind of help do you major will the government be trying to help them with this?

>> well, one minor correction which makes it less exciting is the president won't be meeting directly with the ceos i will be meeting with them with other of my white house colleagues not quite as exciting. >> don't downgrade yourself. >> the president is heading to texas today so he has important work to do down there. look, we're looking forward to the conversation it builds on conversations i've had with a number of senior leaders in the airline industry over the course of the last month that we've been here obviously it's an industry that's facing very huge challenges right now that's why there's provisions in the american rescue plan to continue the support that we've been providing to the industry to keep payrolls in place and to keep stability in the industry we also want to start the conversation today thinking forward to where the industry is headed, what their plans are,

what their expectations are as we come out of this crisis, both for building out, you know, quality customer service and also doing so in a way that is more resource efficientand contributed to our longer term goals on climate change. >> brian deese, thanks for calling in this morning. hope to talk to you again very, very soon. appreciate it. when we come back, a number of stocks on the move in the pre-market we'll run you through some of those names. then dr. scott gottleib will join us with a preview on the fda hearing on the johnson & johnson vaccine and ch me.muor "squawk box" will be right back. to fill portfolio gaps and target specific goals. strengthening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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♪ ♪ ♪ stocks to watch. salesforce.com earned an adjusted 1.04 per share beating the consensus estimate of 75 cents. with revenue beating forecasts as well. however, the business software giant gave a weaker than expected full year forecast for profits. analysts are also expressing some concern about the impact of the company's acquisition of

messaging platform slack they'd like to acquire "squawk." airbnb reported a loss in the first quarter but they did see better than expected revenue as the pandemic prompted consumers to embrace so-called local travel pretty nimble in the way they did that beyond meat struck a three-year deal to be the preferred supplier for mcdonald's mcplant plant plant-based burger they struck an exclusive supply deal with taco bell. h'm. the parent of yum brands we've often wondered what is the meat in the first place in the tacos. i love them. no one was sure. i guess it wouldn't matter investor enthusiasm over the deals helped erase losses that the stock had seen earlier after

beyond meat reported a larger than expected quarterly loss you guys aren't taco bell aficionados but they've come up with -- >> oh, yes i am. >> are you >> oh, yes i am. run for the border >> the new stuff they come up with is like, really >> i go with the old school stuff. i'm a soft taco -- >> i get a box o tacos 12 of them i want taco bell >> yeah. >> beyond meat. >> i will say i've been experimenting at home with vegetarian tacos because two of our girls are vegetarian now. >> really? >> you can make good ones with p portobello mushrooms and like a stir fry >> people have misunderstood you, andrew. someone thought they heard you say you put psychedelic

mushrooms on your salads that's not what you were saying? >> no. >> that would explain a lot. >> only on the weekends. >> that would explain a lot. >> it is friday. >> right we just heard that song. vaccine makers -- >> i hate that song, too, but i like it because you hate it. >> that's nice, becky. that's nice of you to say that that's enemy of my enemy anyway, new variants of covid-19 we're going to talk to scott gottleib he joins us after the break. oh, my god, again. we're coming right back. time now for today's aflac trivia question. who is the parent company of amplify snack brands owner of "skinny pop" and "pirate's b booty" the answer when "squawk box" continues.

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♪ ♪ ♪ now the answer to today's aflac trivia question. who is the parent company of amplify snack brands owner of

"skinny pop" and "pirate's booty" the answer, the hershey company. the fda advisers are meeting today toreview the safety and efficacy of johnson & johnson's vaccine and consider it for emergency use authorization where it could receive approval as soon as tonight joining us right now is dr. scott gottleib, former fda commissioner, cnbc contributor he also sits on the boards of both pfizer and illumina dr. gottleib, we've been anticipating this, hoping for it to come. if they do get approval tonight, how quickly can they roll out some of this vaccine and how much of a difference will it make >> i would expect this vaccine to get approved after this advisory committee, maybe not tonight but certainly within the next couple of days. i would expect it to be available as early as next week. johnson & johnson said they'll have at least about 20 million doses before the end of march.

4 million doses next week. so you're looking at a situation where you're going to layer on top of what's available at least around 4 million additional doses as a result of the j&j vaccine. we're already distributing 16 million vaccines you layer on 4 that's 20 million vaccines being distributed every week if you figure a 60/40 split, you are vaccinating an additional 15 million. we are going to hit the target getting one dose in people up to 100 million people by the end of march. so this will make a substantial difference if you can get this onto the market, which i believe they will. >> yeah. 2 to 4 million doses we should point out johnson & johnson is the only of these vaccines at this point, assumin it gets the eua, that requires just one shot. more people kind of running through with one shot on that,

too. >> that's right. 24 million is just next -- i was going to say, 24 million is just next week. they've said they will have up to 20 million doses by the end of march it's just one shot the 20 million doses is the equivalent of 40 million doses of a shot that requires two. >> right there were some questions about some manufacturing delays and some issues that they have i think the white house coordinator said for this earlier that when the biden administration came in they realized that johnson & johnson needed some federal help making sure they got things like materials -- raw materials and maybe some equipment that they needed as well if they get out, they still think they'll be on track for 100 million doses by the end of june if that's the case, what are we talking about? we've talked with you in the past about how you think april is going to be a big different month and things will be much more readily available i'm trying to figure out when i'll get in the line, when i'll

be able to be there. are we talking april for healthy adults are we talking april, may? what do you think? >> well, look, i think by the end of march this is going to have to be made generally available across the country connecticut said as of march 1st they're going to be vaccinating 55 and above once you get below 45 and above you're basically making this generally available. so connecticut is basically saying that by the end of march this is going to be generally available or at some point very shortly after that i think that's going to be the case around the country. there will be differences from state to state certain states are doing a better job getting their available supply into arms than other states connecticut happens to be doing a very good job at that. i think genuinely speaking across the country you'll see the ability to go online and get an appointment sometime in april, maybe late march. this is opening up the supplies quickly. as far as j&j supply, they can

supply a lot of the raw ingredient the yield on this is very good that's one of the attributes that's attractive. the bottleneck has been fill finishing. they're going to solve for that. they're going to be able to ramp their supply up quite nicely >> and that leads us to the next question about when teenagers and younger kids are actually going to be vaccinated that's something they have not been approved for this yet >> right so there's studies underway, including by the company i'm on the board of, pfizer, looking at 12 to 17, 12 to 18 moderna is starting a study on 12 to 18 they plan to have results in the first half of the year pfizer will have results hopefully by the end of the first quarter. some preliminary results once you go below 12 you have to look at different kinds of formulations you're going to do what we call dose de-escalation stud kiss where you'll study doses in kids

under age of 12. you'll want to look at the lowest popular dose to put into that patient you'll probably want larger studies after that to look at a larger safety database i think you could see a situation potentially where this vaccine gets put into a high school population in time for the fall, perhaps a junior high school population. i think looking at a grade school population you'll want to do more studies and larger studies before you go down the age spectrum into grade school where there's lower risk you'll want a higher margin for safety i don't see a circumstance for this vaccine that will put children into emergency use authorization. you'll want to wait until it's fully approved and issue a full approval for the children. could you see a situation where they make a recommendation of children going into high school or children perhaps going into junior high school need to be vaccinated coming into this school year. i think below that is unlikely

at least at the start of the school year. you want enough information that if you have to put it in the grade school population, you have data to support that. >> dr. gottleib, thank you very much we'll talk more about this, but it's a target we've all been watching very closely. thanks for your data and your information today and we'll see you next week. >> thanks a lot. >> okay. more biggests on "squawk box. still ahead we'll hear from etsy's ceo josh silverman. and don't miss our interview with the ceo of doordash "squawk box" returns right after this

welcome back to "squawk box. i'm dominic chu. one of the big things we are keeping a close eye on in trading is this idea with the interest rates looking the way it is, we are seeing the most of the action over the next couple of days happening in a specific part of the market that's the 5-year treasury note. the reason why is because a lot of traders and portfolio managers talking about a technical reason why this particular part of the interest

rate complex has gotten blown up quite largely. this is again trades happening, moves, repositioning, repricing. all of these things driving this particular move higher remember to start the year we were close to around .36%. got as high as .83% at one point. keep an eye on the 5-year treasury note. that is feeding into further concerns about valuations. check out what's happening with one etf that tracks the momentum type stocks in the marketplace many technology. this is the usa momentum, the ticker is mtum it's off fractionally. we are already from the highs we've seen roughly down 10% just in the last couple of weeks here again, over the last year a big move higher but momentum type stocks taking it really on the chin the biggest single weighting in that particular etf is none other than tesla

if you look at tesla shares in the pre-market trade right now, we are seeing a little bit of stability. only up 3/4 of 1%. remember from the highs that we've seen here, this was just around a $900 stock. we are now down about 25% during that span, becky momentum and growth stocks are key for many investors i'll send it back over to you. dom, it's hard to keep it there. it's only back to where it was it's a specific story because of the momentum you've seen apple, nvidia, paypal have not fallen nearly as much. that's why we want the paypals,

the megacaps >> thanks, dom good to see you. when we come back, much more to talk about decoding the reddit rally hedge funds on the defense buying signals when it comes to the retail investor. all kinds of things to pay attention and monitor. leslie picker will have that story for us. in the meantime, check out some of the reddit rally names seeing a pull back in some of the names. i spoke too soon, koss was down 10%, now it's down 3%. blackberry off and gamestop up by 17% "squawk box" will be right back.

welcome back to "squawk box" this morning hedge funds are playing defense after "the game" stop squeeze by scrapping social media sites scrapping some as well leslie picker joins us with more on thisstrategy. what's going on here, leslie. >> yes, scraping and scrapping, andrew traditionally that practice is scraping social media sites to

see how sentiment might impact stocks it's been used for sourcing investment opportunities, doing due diligence. over the past few months these types of data are being used increasingly for defense as a way of protecting portfolios >> these social media conversations, this attention that companies are getting has potential to be a risk, a risk to the up side, a risk to the down side but i think everyone is recognizing that's something they need to at least start to understand and at least start to take into account when they're making those investment decisions. >> reporter: scrape data to investors found an increase in mentions on social media for gamestop with a leading indicator. justin zen says he's seen a huge uptick in current and perspective clients defending their portfolios the one challenge of course is that not all content on the internet is clear-cut. for example, a tweet of ice

cream is said to be at least partly responsible for the surge in gamestop this week. it would be very hard-pressed to find a smart algorithm that could pick up on that nuance, guys >> so what do you think about the ice cream? what do you think the ice cream really meant >> i've heard all sorts of theories, andrew people say it's like a broken mcdonald's machine that can be fixed. gamestop is similar to that. you know, my own personal pun is that it's a way to melt up the stock. i have no idea but you see kind of this almost arms race going on whether, you know, explicitly or just kind of a byproduct of these various forums where you start to kind of develop your own lingo and then the algorithms have to catch up to that it's not as clear-cut as gme which you see that on there quite a bit on these forums. >> right

>> you know, it's a little bit more difficult than that >> okay. we'll be scraping and maybe scrapping some of that data. appreciate it, leslie. >> thank you >> makes people feel good. long before microsoft, mr. softy made a positive connotation because they would come by when i was a kid. that's what you get. makes a good feeling makes me want to buy stocks. lots of discussion on who's pulling the strings on the latest gamestop rally. maybe our next guest can give us the answer we're all looking for. joining us is henry blodget. he might know. he's the ceo of insight. he's the founder and editorial director henry, santoli was on yesterday. the 300 calls on gamestop, one day to go. selling at 6 think about that it's 200 points out of the money, not anymore, but i don't know, that just kind of sums up

the potential, the volatility, the quick moves. and my point was, i'd be scared to death of selling that call naked even at 300 because i could end up with, you know, a loss of 10 times my money in this environment what does all of that say? >> by the way, being scared to death is the emotion you should convey to a lot of folks who are very enthusiastically jumping on to their speculation apps, playing this, it's a lot of fun and so forth what you just described is what gets people killed, taking a lot of risk they don't realize they're taking i'm sure we'll have a great forensic analysis. some folks on the short side thought it was safe to wade back into the water and got killed. we shall see but, joe, i have to say, and to andrew, having lived through the 1990s for the last 20 years i

have often been asked as we get into a speculative episode or around the edges, you know, hey, is this like the 1990s and up until now i'm saying, no, no, no totally different order of what was happening. now i say this is exactly like the late 1990s the amount of just bananas speculation and the enthusiasm and the rage of the speculators against anybody that wants to tamp it down or urge conservatism, care, what have you is exactly like the 1990s. i think they don't know when it's going to end. one of the big questions that i certainly have been asking people is, hey, is this late 1998 mid 1999 or early 2000? nobody knows the answer but i -- my guess is in a few years we're going to look back at this as yet another one of the major

historical perspectives. >> the latest bump in the road has been the rise in the 10-year and it hits tech right away. that makes sense when things are for a lot of reasons, if the fed were to eventually cut off the gravy train, valuations come down and higher rates. others have said that that doesn't change the future of any of these tech companies, that they're still going to just flourish could change the valuation of the stock though. >> yeah. and that's actually -- that's totally right and it's an important thing to remember. in the late 1990s that's what everybody said and certainly i was saying that. listen, the internet is going to change the world and just going to create huge and amazing businesses it's going to destroy a lot of traditional businesses all of that happened in fact, it happened way beyond what even the most enthusiastic people were thinking in the late 1990s and yet from 2000 to 2002 most of the tech stocks still

got absolutely obliterated that is the point that i would urge people to look when they look at history, which is that you can be completely right on the profoundness of the fundamental trend and still get at least temporarily killed in stocks having said that, i will say, joe, one thing that's important, and very interesting, is a lot of the big tech names are not that crazy you look at microsoft, you look at apple 30 plus pes. >> right that's what's different from the zero earnings back when you were -- >> yes. >> so, becky, you have a question then i want to get back to henry about something else i need him to answer something you go ahead just get ready, bellodgett. >> henry, the idea that this is sitting in the chair and paying attention and taking notice, that went on for several years

i hate this time maybe different type of questions. let me just ask this this time what we're hearing from people is it's the problem we're hearing back in the 1990s. areas and not the entire market. having looked through that and having looked at this, i think -- >> i think this is yet another story we're telling ourselves to make ourselves feel better we're on more solid ground there were a lot of those stories in the 1990s, too. starting with the internet story. the internet has been extraordinarily powerful, profound, creating companies so we were dead right about that. again, the market in the interim was tough. so i would say is there is just absolutely bananas crazy speculation in a lot of different areas. certainly in the spacs, certainly in a lot of company -- a lot of the tech companies that

remain not profitable. they're bad at the margin but also the entire market is actually at an extreme level relative to all history, including 2000 that's because of interest rates. >> don't try to keep talking so that i don't get to ask you this i see what you're doing. we've only got about two minutes left i'm going to set it up like this tyler winklewinkleboss, he tweed this morning if you're not in bitcoin up to 58,000, you've missed it you've missed your chance to get rich give it up he then tweeted back, that's wrong. the case can be made instead of a trillion dollar market cap, it can have 10 trillion of the global financial system and that would cause you to save $500,000 for bitcoin. now iknow at 5,000 you were

actual ltulipped more tulips at 40. you still have not ever said anything positive about it. >> joe, that is completely unfair i said back -- i said back in 2011, we can go back -- >> where are you now then? >> bitcoin's a go to. >> is it a actulip or no? >> i'll tell you what i said back in 2011 it is the perfect asset for a speculative mania. it is hard to understand it will be more understood by people over time there is a very limited supply it is absolutely impossible to value fundamentally because it has no value it's only worth what somebody else will pay. unlike a stock, which usually does have some relationship ultimately to a fundamental, bitcoin doesn't. that means it can trade anywhere what i said was when it was trading at 90, joe, they could go to a million and i meant

that it could also go to 1 and in fact it may do both of those i think tyler's right. it could go to a million the stories we tell about why it's got the value of gold or other currencies are ludicrous. >> henry, you can make -- why do you think andriey son, paul teeter jones, elon musk, you can find a way to ascribe value to that as a unit of worth. >> yes. >> keep saying that it's someone -- it's a greater tool someone pays more to it and there's no underlying value, that's false that's false >> joe, if people, too, decide for the next couple hundred years bitcoin is where you park your money when you want to take it out of a fiat system, okay, that's possible. the story used to be we were all going to use it for transactions no one does it anymore they're holding it anyway --

>> it's a tulip. >> it's a wonderful speculative bubble that could go a lot higher >> all right all right. and i own some so i always have to disclose that >> i do not. >> pretty obvious. all right. anyway, thank you. it's not -- winkleboss says it's not too late i just don't want you taking the plunge at 250,000 and saying, golly, what did i do >> you don't have to speculate, joe. it's an option you don't have to play the game. >> may not be that thank you, henry >> thanks. >> we'll revisit this. thanks becky. all right. when we come back, ecommerce company etsy reporting better than expected fourth quarter results, including revenue growth that more than doubled. the company's ceo will join us right after this break "squawk box" will be right back.

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welcome back to "squawk box" this morning etsy blowing past earnings shares up over 300% this past year the biggest pre-market gainer in the s&p right now. joining us to discuss the quarter and the outlook, ceo josh silverman you had this blowout quarter let's talk about what you think the future looks like. i ask in large part because i think we're all hoping that we're about to get into a post

pandemic world that may bode well for some and may bode less well for others. >> that's right. 2020 was a spectacular year for etsy i think it was a time where circumstance met preparedness. millions and millions of people discovered etsy or maybe rediscovered etsy at a time when they hadn't been to etsy in a long time. etsy is the kind of business that gets better as it gets bigger so more buyers means more sellers, more sellers means more buyers which makes the marketplace a whole lot better none of us know what 2021 brings 2020 is ecommerce grew at 40% year over year etsy grew 2 1/2 times the rate of ecommerce so i don't know what ecommerce is going to do in 2021, but i hope and believe that etsy will

be able to continue to outpace ecommerce overall. >> in terms of the way you think the shopping experience takes place, do you think -- i mean, by default the growth -- do you think -- is it -- how -- what's the chance you have the same kind of growth rate next year, for example? >> well, first on the bubble side, there's a lot of people -- we tend to forget, there are people who shop exclusively at the mall, never shopped online millions of people started shopping online in 2020 who hadn't before. they loved it. it was convenient. interesting. so we've brought a lot of people into ecommerce who weren't there before on the bear side, during the pandemic people can't spend on travel they can't spend on dining they're spending a disproportionate amount on retail when they're spending on retail, they can't go to malls so they're spending a disproportionate amount on

ecommerce. what i don't know and what i don't know that many of us know is what's going to happen to consumer spending overall as restrictions ease. what i do know though if you're looking at the long term at 2022, 2023 and beyond, ecommerce is bigger and stronger and will be bigger and strong be ger, i believe, as a result >> josh, as you know, elon musk tweeted on january 26th, i hope you saved the tweet, i kind of love etsy. how much was that tweet worth, do you think, this quarter >> you know, et cetera yes trades on the fundamentals and has always traded on the fundamentals at the time he sent that tweet etsy stock price went up, i forget the amount but i think we gained a billion and a half, $2 billion for two hours and then the stock price settled back down before it tweeted he loves the etsy marketplace and tweeting about a product he bought for his dog which i love. but, you know, we trade on the

fundamentals i think it's important we talk about the fundamentals i hope it always trades on the fundamentals >> are you thinking at all about accepting bitcoin? >> not right now i'm a holder i've held bitcoin for six or seven years now i think on the theory that i think it will be an interestingstore of value it could be an interesting tender some day. we need a whole lot more people to buy it and own it before i think it's really useful >> and then finally i wanted to ask you about how you see the marketplace world versus the website or store world given the success of shopify how many of your small businesses are both on your service and also developing their own and what does that mix look like for you? >> many of our sellers will also have their own shop. the challenge is creating your

own shop today is creating a lemonade stand in the desert, right? it's harder and harder for an individual site to rise above the noise and become a brand that people can remember all the trends i can see, we're consolidating to fewer and fewer large ecommerce. we can only have four or five six brands you have to go to google or facebook if you are downstream, then they're the ones who get all of the economics. i don't think it's likely that there's going to be 2 million thriving individual places to go buy things i think there will be a handful. the job of etsy is to create a brand that stands for something, that's meaningful and lifts all of our sellers up as a result. >> josh silverman, great to see you. i hope you come back and we have

have a conversation about the future of retail. >> look forward to it. >> more biggests coming up rocket company ceo jay farner on the record quarter plus doordash's ceo on the ttg very giant's growth. geinin my way when i'm trying to get my fries at wendy's. all the mobile orders.

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good morning it is the final trading day of february and stocks looking for direction after the worst day of the month. we've seen a big swing in dow futures. you guessed it, gamestop is on the move again meanwhile, the house pushing through president biden's $1.9 trillion covid relief bill with a $15 minimum wage won't be in it we'll talk all about the economy as well as markets and lots of corporate earnings with an all-star lineup. the final hour of "squawk box" begins right now.

good morning and welcome to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin it's friday. i'm in love. u.s. equity futures are down 1189 points it's off five. treasury yields, say it one more time, treasury yields are at 1.48 a spike up to 1.46 on the 10-year yesterday. a lot of people pointing to that for what subsequently happened to the dow and the nasdaq. watching it closely this morning as we are saying it, below 1.5 >> thanks, joe let's get caught up on some other stories investors will be talking about today. we will start with game stop moving higher in the free market after a 20% jump yesterday

what's moving all of this, still unclear. renewed interest in the stock could be from investor optimism on news the company's cfo will be stepping down next month. maybe the idea is what will come and what game plan they will be following. or it could be this picture which was tweeted by ryan cohen of the mcdonald's ice cream cone some have speculated that might mean cohen is aiming to fix gamestop very random. very weird yes, there it is in the meantime, take a look at some of the other mean stocks. you'll see koss is back down by 10%. it was fluctuating down 3%. blackberry shares down 2.25% nokia off 1% amc off 1% it's up another 13% right now. the house is expected to pass president biden's $1.9

trillion covid relief package later today and send it to the senate however, one provision that will not be in the bill is the new $15 minimum wage the nonpartisan senate parliamentarian determined that lawmakers could not include that measure in the bill because they are using a mechanism that's called budget reconciliation to pass it. the director of the economic council commented on that decision >> the president and the vice president both respect the parliamentarian's decision and the process. we don't agree with it we're disappointed by it, but we'll respect that process and our focus now is going to be to get with congressional leadership and determine the best path forward for minimum wage. finally, at&t is spinning off the directv and other paid tv services into a separate company. private equity firm tpg capital will own 30% of that at&t will hold the remaining 70%. at&t is going to be using $8

billion in cash from the deal to pay down the debt. that's what they're giving them. $7.8 billion it's going to be used to pay down the debt. the paid tv services are valued at a little over $16 billion that's $50 billion less than the price that at&t paid for directv alone back in 2015 obviously it's been a declining business it still has 17 million subscribers. they plan to work on operations to keep the subscribers and bring in new customers andrew >> thanks, becks. meantime, investors regrouping after yesterday's bruising selloff on wall street. the worst day for all of the markets. mike santoli joins us with more. >> andrew, tremendous amount of push and pull between stocks and bonds, and issuance of new stock offerings. it's all netting out to a 3% decline from an all-time high from the s&p 500 we're still in a normal pullback

zone hanging around in the mid 3800 that was the january high. a lot of times that's what happens. late january, back to the december highs in the up trends that's sometimes where things do settle out. obviously we have tremendous pressure on the stocks and the s&p. take a look at this chart. the high beta or very cyclical or learnveraged stocks have been flying this group is driving everything it looks a little bit tired or maybe overbought we have a slight pull back if this compresses, it might do more we'll have more wear and tear on the indexes. the bond market, not just the 10 year, it's more the middle maturities that have the drama between the 2 and 7 year the 5-year note, look where it is the 7-year note, sorry

this is above where the 10-year was a couple of weeks ago. it means the market is trying to figure out if the fed is going to accelerate the timetable but also it seems like a lot of people positioned off sides in bonds. you have pretty violent movements in more stressed parts much that curve yesterday. >> mike, thank you appreciate it. joe? thanks, andrew joining us now to talk more about the markets, greg david. chief investment officer of vanguard we're going to speak with greg about the importance of the diversity and inclusion on wall street them' ring the nyse closing bell to celebrate black history month. great to see you. >> great to be on with you thank you. >> i rang it once. i guess you don't use the hammer i've seen that thing fly off and almost hit someone i think it's different now. >> we're going to be doing it virtually so it will be a bit different. >> that makes sense.

i figured that which is better for everyone involved the move to 1.6 yesterday. did that catch your attention? and should it -- should it be seen as some type of harbinger of things to come that there could be some -- a rough patch in equity? >> look, when we see pretty substantial risks when it comes to yields in the bond market like yesterday, it's no surprise it has some impact in the broader equity market. the rise happens relatively quickly. it causes the market to reprice expectations we've been in an environment where interest rates have been so low for so long and if you're thinking of company earnings into the future specifically with growth companies, if you start discounting that at a much higher interest rate, those future dated earnings, potential earnings ends up being a lot less today than it was 6 or 12 months ago again, it's not surprising that we've seen some pressure on the

equity markets given the yields. >> it's just math and you figure that out you see that even though the prospects for the economy are pretty good as we reopen therefore, the prospects that we're talking about probably not damaged by 1.6 to 2% but the way the stocks are valued could be where you go wrong >> again, there's a lot of stimulus that's already factored into the marketplace the big question ends up being does this already end up being priced in. the next question is what happens in terms of infrastructure is there another large bill that ends up getting passed later on in a year that again could be supportive of the market valuations and things of that nature the thing to keep in mind, when you look at equity market valuation, when you look at the u.s. market, it is relatively weak it gets likely over valued

not greatly over valued. value does look more attractive on a forward looking basis when you look at international stock, that looks more attractive on a forward looking basis. there's a lot of good news that's reflected in asset prices. >> if you needed to have a portfolio that wasn't -- that could be protected from mochsz in equity prices, how would you hedge against that at this point if you needed to advise a pension plan or someone like that when would fixed income start? and what part of fixed income would be attractive? >> joe, we get that question all the time in terms of the importance of still having, you know, diversification in a portfolio. our view is bonds still play a very vital role in a portfolio it provides that balance and that diversification when you get a big move in the equity markets, you get a down draft.

having that diversification is muting that volatility that can help investors stay the course longer term the other thing people have to remember when it comes to owning bonds, look, ultimately in the long run if you have a long-term time horizon, rising interest rates are a good thing you're reinvesting the principle payments, coupon payments and that will produce a higher total return again, we always view and we always say to our investors the importance of diversification, that principle never goes away >> greg, the black professional network at vanguard, and just the -- where we are in wall street in terms of inclusion and diversity, how does it stack up against the rest of the businesses that we follow across the country? and has progress been made how do we make it more quickly from here on out >> it's a challenging situation.

we've made progress. however, the progress has been relatively slow. you know, i think back to when i was in graduate school and looking at the top 25 blacks on wall street. more african-americans, more latinos on wall street than there was back then, i'd say the answer is yes, however, when you look at, you know, our industry more broadly it is still not an industry that's representative of the college educated work force. if you think that african-americans make up between 10 to 13% of college educated -- the college educated work force, wall street is not representing that at this points in time nor are we in the investment management industry we're continuing to try to do work through hbcus, through organizations like blk which is a student-run fund that is embracing and getting more students involved in assets and time management.

we have a lot more work to do as an industry. >> you see this as something that the private sector needs to if it's organic or should there be bigger sort of brute force for the government in some way >> this is something the private sector can install on its own. when you look at a company that embraces diversity, equity and inclusion, mckenzie did a great job in the top kwaur tile for gender or ethnic diversity were 25 to 36% likely to produce above average profitability. we know that research has shown they make better decisions we espouse the bether diversification. the same applies when it comes to looking at the makeup of corporate boards again, having diverse

perspectives, having other folks in the room when complex decisions are being made, those additional perspectives can be very helpful for organizations over time to avoid any pitfalls at being blindsided by not having the full perspective could cost some of these organizations. >> greg, thanks. thanks for the update. good luck and as i said, we'll be watching at 4:00. >> thanks for having me on. >> you're very welcome becky. >> thanks, joe when we come back, not one, not two, but three more big interviews the ceos of rocket companies, etin and doordash will join us as we head to a break, let's look at shares of twitter. goldman sachs raising the price target to a street high $112 a share. that's up from $78 it thinks twitter's growth acceleration driven by

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coming up when we return, jay farber is going to join us on rising interest rates and the housing market what's it going to look like

post pandemic. stay tuned, you're watching squawk on cnbc

check out shares of rocket mortgage -- rocket companies

it has an increase in revenue. jay farn ner jay, want to run through some of the numbers. the numbers are incredibly impressive for the full year, 2020, you've seen a record loan volume and revenue has tripled and net income came to $9.4 billion and that's from under $1 billion a year ago fourth quarter, very similar trends revenue, $4.7 billion up from $1.9 billion net income $2.8 billion up from $0.8 billion a year ago. those are big, big numbers what's happening what's driving that? is it refinancing? is it new mortgage originations? what are you seeing? >> thank you, becky. thank you for having me here this morning thanks for reporting all of that good news. when you are building out a

platform the way we are at rocket companies, have you to have scale you have to scale quickly and you have to have operational efficiency that's what we've been focusing on and investing in years and years. 2020 demonstrated our ability to do that growing $175 billion or adding that to our platform from a mortgage perspective which is equal to or maybe even greater than our total production of our competitors -- our second largest competitor was able to do as we get into it, the 10-year rising and mortgage rates ticking up, that efficiency to produce an item at a lower cost than others allows us to continue to grow while we see pressure on the broader markets. those are the two things we've been focused on. >> you know, i can understand the efficiency arguments i have refinanced loans with you guys and i have to say you do have the technology. you keep it in there

they come in part because you have a stock that's heavily shorted. we're not talking reddit this is not one of the gamestop type stocks and the short interest was about 40% for rocket companies i know there were some unusual options in the stock with the expirations on the options out there. just looking at the stock up 14%, this is a fast mover. first of all, what would you say to the short sellers, jay? >> i'm going to say the same thing i've been saying for quite some time now. we've been doing this for 35 years. we've been building out a great platform and capturing the lifetime value of the clients we interact with. mortgages is awesome we love the refinance business that we do our rockets home platform, $6 billion in rooeal estate transactions rocket auto platform, $759 million in the gmb when we'rethinking about acquiring the client, we're thinking about the lifetime

value of the client. i think that makes us very different than some of the traditional competitors that investors think of us or compare us to. so over time, becky, this will play out you know that dan and i have been -- i've been here for a quarter of a century we're long haul guys right investments, technology, rocket cloud force, brand, data lake all of those things, that's the type of mindset that we have over time that will play out and you'll probably see fewer and fewer people shorting the stock. >> jay, part of the thesis for the short sellers has to be that interest rates are rising. historically your company has always done very well in new finance. that happens when interest rates are low. we've been talking about how the ten year is 1.5% and that was what people were anticipating for the end of the year. seeing quick moves like that, does that show up in your business >> you know this better than

anybody. when the bond market moves, it tends to move quickly. especially after coming down the way it did in 2020 we don't focus on that our ability, again, to be very efficient, these type of moves really create opportunity for us so as our competitors who have joined the marketplace look and try to figure out how do they stay profitable in markets like this, we are able to lean in you'll probably see our marketing budget move up this year as we see opportunity to grab market share. as i referenced, it's also about the broader platform not the first, second, third time i've seen interest rates move up. we'll see them move down as well that's another thing we look for as one of the largest servicers in the country we have 2.2 million people in our service book as we acquire the client at higher interest rates, we are reloading the pipeline our retention rate nearly 90% will bring clients back. the cycles go up and go down from a long-term perspective, all of these things when done

properly will benefit our company. >> you mentioned your marketing budget i always think of you guys as being a very big advertiser. how much did you spend on advertising last year? how much do you plan to spend this year? >> we did close to $1 billion in our two super bowl spots which were rated number one and number two at the u.s.a. ad meter our cmo is always excited about spending money on those things behind the scenes we are spending money on performance marketing, digital marketing that's where you'll see an increase i wouldn't be surprised if we go north of that. it's equaling 3, $4 back in revenue on our platform. as dan gilbert reminds me, if you look back on 2020, 70, 80 cents of those revenue dollars is dropping to the bottom line >> you know, that's always been a big question with advertising. you know it's working but you don't know which dollars are is that different? that's the old kick on advertising. do you know exactly which dollars are working especially if you're doing that with

digital advertising? >> yeah, the visibility that we have in those dollars not only with the direct to consumer, think about the partnerships we announced etrade, morgan stanley, charles schwab, intuit. all of those things we can invest our marketing dollars those are very trackable that's what gives us the dollars to invest hundreds of millions of dollars as we go into 2021. >> you also announced yesterday something called rocket labs what is that >> well, we've been doing this for years. it's kind of our incubator to find the new businesses that we can add on to our platform at this point in time it became important to memorialize that and set up more structure around it that's exactly what it is. we think about additional business verticals that we can add onto the rocket platform we carve out two small pizza teams to work on those we work on them quibblingl quic. we want to condense the time frame of closing a mortgage from start to finish to 10 days

we have another one focused on opening up home sales. as you know, inventories are incredibly tight we bring homes to the marketplace. we keep coming up with the great ideas, putting them into rocket labs and testing them and if they work, we'll add them to the rocket platform. >> jay, i'm looking at the stock again and right now it's up by about 16%. again, when we went to the commercial break before we came to you the stock was up 10%. this is the second interview that you've come on with us and we've seen crazy volatility like this what do you think of the volatility what's happening in your stock >> well, i was told it was the blue shirts that i wear so i'm going to continue to do that in all the seriousness, there's a lot of interest. we're a consumer brand we're one of the most well-known brands and respected brands. people pay attention when i'm out here, the more people understand it is the difference between a traditional mortgage lender and rocket companies and platform, the more

that we're talking about that, explaining that, it tends to move the markets so, you know, again, 25 years dan has been doing this for 35 years. it's exciting to see interest in our staff. our focus is long-term investment how do we grow brand how do we grow technology? how do we grow rocket cloud force. all of those things year in and year out will create a company that will continue to grow and where we focus and not pay attention day to day or moment to moment in the stock price. >> there's a special dividend announced yesterday. $1.11 for people who have held onto the stock for a while you guys just went public in august what's behind that it's $2.2 billion. why the special dividend >> well, we always look at the best way to invest capital for our shareholders we've made $11 billion that's nearly $1 billion a month. as we went through our waterfall and thought how we could invest it, first thing, make sure the balance sheet is fortress like

which we've been doing the second thing is are we investing properly inside of the company. we talked about rocket labs. we're doing that the third was if we don't have acquisition at this moment, although we're always looking, should we return some of this capital to our shareholders. that was the decision. we made a $2.2 billion dividend which equates to about $1.11 per share. we thought that was the right move to make at this point in time for our shareholders. >> jay, thanks for being with us this morning right now that stock is up 15% we'll talk to you soon. >> thank you, becky. we are standing by for some breaking economic data futures are down about 100 triple digits. nasdaq down 48 steve liesman we go to gave you a couple extra seconds. are you ready, steve >> i got it, joe, here a massive, huge big increase in

personal income. personal income in january up 10%. and you can guess where that came from? that came from the $900 billion stimulus bill and the personal checks that went out at the end of december and early january. as well as the boost to unemployment insurance what i am looking for is the pce price index. that's 1.5%. that's the fed's preferred inflation indicator. the core also up 1.5%. that compares with december, 1.3% then i'm looking for the spending numbers looks like personal consumption up 2.4%. i don't have the standards joe, max i'll do this in 60 seconds. big jump in income, smaller increase in spending leads to a big jump in the savings rate and inflation. that's the whole story we're talking about. why? the economy is reopening there's additional stimulus coming from washington and that's all what's behind the concerns in the bond market

about inflation and an economy running too hot down the road. i yield the balance of my time to you, joe. >> okay. that's a big mistake for everyone involved. thanks, steve. coming up, two more big interviews we're going to save it for our next guest the ceo of eaton to join us the kind of demand the u.s. is likely to see with the u.s. reopening. and we'll switch to ev tony xu from doordash with us on "squawk box" after the company's first quarterly report since goinpuicg bl stay tuned, we'll be right back.

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when we return, doordash delivers a revenue beat in the first quarter. will americans stay hungry for takeout once lockdowns ease up we'll ask doordash ceo tony xu right after the break. stay tuned, you're watching "squawk" on cnbc key portfolio events, all in one place. because when it's decision time, you need decision tech. only from fidelity. wanna build a gaming business that breaks the internet? you need decision tech. that means working night and day... ...and delegating to an experienced live bookkeeper for peace of mind. your books are all set. so you can finally give john some attention. trusted experts. guaranteed accurate books. intuit quickbooks live.

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industrial stocks have greatly outperformed the s&p is slightly negative well known company craig arnold part of the special committee. ahead of the equitable justice committee. craig, welcome can we just start with just anecdotally tell us what it's been like to operate a big company like eaton >> great to be back.

definitely a roller coaster year certainly during the heart of the pandemic, you know, markets fell pretty dramatically and pretty much across the board you know, having said that, i would tell you that as we think about what happened with companies like eaton in general, it was a very different recession. in fact, the manufacturing sector of durable goods sector actually fell a lot less during this recession than in prior recessions in fact, many of our end markets experienced what we call a v-shaped recovery and came roaring back quite nicely to the point where many of our end markets are at pre-pandemic levels as we look forward into 2021, we think this could be one of the strongest years ever for gdp growth for the manufacturing sector really since 1973 and so by and large i'd say in our end markets, certainly we're in the electrical business, data center markets are strong, residential markets as you know

are very strong. utility markets are strong we're certainly experiencing a v-shaped recovery in commercial truck markets in the u.s. and around the world the global vehicle markets are doing quite well i'd say, yes, 2020 was a challenging year it was a dynamic year. i'd say also a year that was marked by a very strong recovery >> you had to operate in that environment which was obviously affected by the pandemic, plus you had to keep all of your employees safe, too, didn't you? >> absolutely. we're extraordinarily proud of our employees. we are one of these industries that is deemed essential and as a result our employees and manufacturing operations had to go to work every day and we're extraordinarily proud of the fact that they did come to work every day. they showed up they kept each other safe by really imposing a number of these protocols in our factories around keeping people safe, social distancing, masking

one of the things that we said as we wanted the 8 hours that our employees spent in the facilities to be the safest eight hours of the day i think we did a great job as a company. no question our employees did a great job of coming to work every day, getting support out and supporting the overall company and supporting our customers. >> eaton, sleepy old, industrial company and then suddenly electrification is happening faster than people thought, energy transition to cleaner, more renewable energy and connectivity three areas that you play in suddenly you're like, i don't know, you're look a disrupter growth stock all of a sudden or could be. >> absolutely. you know, one of the things i said in our recent earnings call is that we think we're at the beginning of what could be some of the most important secular growth trends of our lifetime. you really hit it well we are living in a world where

everything is becoming electrified. everything is becoming more electric, not just -- obviously we're talking a lot about electrification of vehicles but generally speaking commercial vehicles are becoming more electrified. airplanes. there's more electric products in your homes and buildings. electrification of the economy as we take advantage of the renewables is something that will benefit the company as we look forward and we help accelerate our growth. the other one you mentioned, we're absolutely thrilled by what's going on in energy transition power is becoming distributed. we say that everything is becoming a grid so everything being able to both generate, consume and sell power back to the grid and we think as a company we're in a quirky position to take advantage of that with the technologies that we bring to bear in that space the third one to your point is really around this whole trend of connectivity or

digitalization it's really how do you create value from data. and it's great to be a company in a world where data is becoming more important. be one of those companies who make the things that generate the data that allow us to create new insights and therefore create better efficiency in the way we run our business and also create unique growth opportunities for our company. certainly an exciting time to be at eaton an exciting time to be a power management company and we think our best days are in front of us. >> for the brt, business roundtable, special committee on racial justice, for you there's stakeholder concerns that it's not just shareholders, it's the community and diversity and inclusion concerns as well that you're trying to spearhead can you go into that a little bit? >> first of all, eaton has always been a values based organization we always care deeply about

people, about community as a company who i'm extraordinarily proud around our track record around inclusion and diversity our management team, more than half of my leadership team are u.s. minorities. if you look at our board of directors, half of our board of directors are diverse and so eaton has just done a great job i think of leading from the front and walking the talk wit respect to inclusion and diversity. but broader than that, we all are dealing with the broader societal issue around equity and inclusion and to your point the business roundtable has certainly been leaning into this issue. i was absolutely thrilled when the business roundtable made the decision two years ago to change the purpose of a corporation from yes delivering for shareholders but more importantly than that, delivering for all stakeholders. and that's really been a place that eaton has been, you know, for much of our history. so, yes, shareholders but also communities, also employees,

also the environment. >> we look at the stock again, i know there's other stakeholders, but if i were a shareholder i'd certainly -- i'm not going to say don't do anymore of that because it's been a great year for the shares as well, but those other things we like to emphasize and get to those as well whenever we can and we appreciate your time and what you're doing on that front as well >> yeah. no and i would hope that the shareholders are pleased and look at the return. >> as we go to break, we'll take -- we're going to another interview. maybe we can take another look at eaton quite a comeback thanks again coming on. >> thank you >> maybe not meantime -- >> off to you, andrew. let's show eaton again before the she is over

we're going to talk a little doordash the first quarterly report as a public company reporting more than 200% year-over-year revenue growth benefitting from pandemic-driven demand despite that growth, they reported a larger net loss and is warning softening consumer demand as the u.s. opens back up from lockdowns joining us first on cnbc's doordash ceo tony xu good morning to you, tony. >> good morning, andrew. >> now you're a public company it's all about expectations. in a normal quarter you'd look at your results and you'd go, let's throw a party. now you look and you see that the stock is down 10%. what are you thinking about this morning? >> well, it's always about the fundamentals as i like to say, andrew even on listing day when we went public just a couple of months ago, what i told the company is while things might change as we become a public business, the

one thing that doesn't change is we have to continue building the best product for our customers we have to continue focusing on mastering the basics, the best selection to the restaurants, the quality of the business experience the affordability of the experience as well as great customer service if we focus on those fundamentals and the rest will take care of itself. >> let's talk though about this previous quarter and let's talk about what you think the future of the world looks like, especially as we get into hopefully a summer where things get a little bit better in terms of the state of the pandemic and what that means for people dining out versus falcalling yo. >> i hope soon we will come out of this pandemic in fact, i wish we could be doing this in person. >> but what does that world look like to you in terms of your growth rate in a -- i don't want to call it a post pandemic world because hopefully it will be nice if next quarter it was but let's say six months out from

now. >> yeah, look, i think no one has a crystal ball to this we certainly don't we are prepared for all of the scenarios that you saw reflected in our guidance for the year with the data that we did see, if you take a look at 2020, for example, and we looked at the summer months of may and june, certain states in the u.s. did reopen fairly aggressively, texas, georgia, florida, and you saw correspondingly the emergence and the rise and recovery of indoor dining, which i was super excited about. at that time our business continued to grow. and so, you know, again, there's no crystal ball. that's really one of the only data points that we do have here in the u.s., and i believe that as long as we continue to focus on delivering products that have the best value for all customers, consumers, merchants and dashers, that's what we need to do for the long term. >> let me ask you, and maybe this is simply an accounting issue, but in terms of the way investors are going to look at

your stock and the way revenue is accounted for, there seems to have been at least an issue with fourth quarter cash and not just the burn but cash being held up by strike which processes transactions for you how should investors think about that >> a lot of the end results in the fourth quarter with respect to, you know, cash flow changes really had to do more with one-time changes, especially in -- when it comes to, say, our cash position. some of that, you know, were reflected in what you talked about with prepaid account balances, some were pre-payment forex pens in this calendar year, 2021 that we made, fourth quarter of '20 some had to do with stock-based compensation which kind of accrue all at once once you go public and so that's really what happened with our cash position. i think when you look at the fundamentals of the business and

drivers of profitability, the company had a record quarter it was our highest quarter of adjusted ebitda. three quarters in a row. we ended the year in 2020 with positive cash flow >> doordash drive versus classic doordash, what's that -- how do you see that business evolving over evolving over time and what are the margins like on a relative basis >> doordash's goal is to grow and empower local economies. the grow part of our mission is really reflected in our marketplace where we're building a multi-category marketplace to bring every local merchant to every consumer now the other side of what we do is a platform, and one of those products underpinning that platform is doordash drive the goal of the platform is to give merchants the same tools that we have in our marketplace so that merchants can build their own digital channels but drive, this he can offer on demand and same day delivery and this happens for small businesses and people like my mom's restaurant, all the way to

walmart, and so drive is growing really, really fast because i think what you saw dure the pandemic is every merchant on the street was forced and compelled to participate in e-commerce, which was a great thing, perhaps the only silver lining in an awful pandemic. as a result of that, drive grew much faster than other segments of our business and continues to come and a big part of our mission. >> and longer term, how do investors think about your margin there are states and localities and municipalities that are starting to look at the margin, how much you're taking from the small business, and whether you think that's going to become a larger conversation, and more meaningful to your earnings over time >> i think here's the thing that people should understand about how we think about pricing and what's, you know, normalized or

a fair rate for our marketplace. we really price to the cost of what the services are. as i mentioned, we really have two families of products on one side, we have a marketplace in which we take a commission, now that commission has to pay for dashers, over a million dashers in q4 alone owned over $2 billion, it has to pay for customer support, in which we invest hundreds of millions of dollars per year, it has to pay for marketing, which we invest billions of dollars a year on behalf of merchants and getting them sales and instant liquidity. and so that's one part of the other part is our platform, with products like drive, logistics as a service, or storefront which gives merchants an online ordering system that will talk to the backup house systems and those are commission-free products and in those instance, the merchant is bearing some of those extra expenses on their own and just paying for the technology >> tony, one of the regulatory conversations or policy

conversations that's emerged is people are looking at these bills and saying, 30 to 50% of the bills sometimes is effectively the money, revenue, is going to us, as opposed to going to the small business, and whether you think that's going to create enough of a debate that actually lawmakers are going to try to step in. >> what i would say is, you know, our mission, our founding mission was really to make sure that entrepreneurs like my mom, you know, who used to work at a single location restaurant, would be able to compete in today's convenience economy. and it is always it make sure that these businesses, small, medium and large, physical brick and mortar businesses will be successful and transform their own business models to compete, and if you think about the results, i'm very proud to say that during the pandemic, merchants on doordash were eight times more likely to survive covid-19 as a business than the average u.s. restaurant. so i think it's working, the

model is showing that we're bringing incremental sales to grow you out of a crisis situation like in the marketplace. and then on the platform, we're giving you the tools to compete on your own, where it's commission free. >> fair enough tony, great to see you i hope we do get to do this in person next time and hopefully we'll be sitting outside at a restaurant somewhere soon. >> or even inside. yes. nice to see you too. >> inside, even better >> all right >> when we come back, we got jim cramer's take on the final trading day of the week and the month. stay tubed after this. they know exactly which parking lots have the strongest signal. i just don't have the bandwidth for more business. seriously, i don't have the bandwidth. glitchy video calls with regional offices? yeah, that's my thing. with at&t business, you do the things you love. our people and network will help do the things you don't.

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it's the moment you've all been waiting for, let's get to cnbc headquarters and check in with jim cramer and we had three ceos on and i want to get your take on all three but i've been told one, and you pick >> these were three unbelievable interviews i want to talk jealousy. >> come on, four ceos on your show last night. >> you correctly pointed out that this stock moved dramatically during the conversation, and is that reddit i don't know i think it's the fact that they are really smoking it, that was

an unbelievable quarter. a great special dividend for rocket he is so undervalued for what they're doing and i thought he was totally controlled and they had a magnificent quarter. maybe one of the best that i've seen this quarter, this year, and how about the fact, this little backup in rate, he doesn't even notice it, that's how good they're doing it, so let's not emphasize it too much, i got three and a half, five year on him yesterday. pretty good. >> i'm refinancing myself last night. >> up 25%, the stock right now. >> a great interview >> the interview moved the stock. because you could hear the level of conviction. it was fantastic >> jim, thanks so much >> absolutely. >> we will watch we will see you coming up in a few minutes and check out what you guys have today, too thanks, joe? >> dom chu joins us to look at some of the morning's top stock movers we have a couple of earnings reports this morning to help wrap up the week first of all, we will start with draftkings up 3% pre-market.

700,000 shares of volume, this is the online sports betting company, smaller than expected losses reported, better than expected revenues, and also raised its full-year sales forecast, and draftkings says it is seeing a substantial increase in users coming on board due in part to gambling legalization, and shares are up 4.5% and shares of foot locker, up 8% pre-market, 20,000 shares of volume, the athletic shoe and apparel retailer, mixed quarter, better than expected profits, sales fell shy of estimates and also sales growth at existing store locations came in below estimates as well. we will end here on something kind of curious with what's going on in terms of cciv, which is churchill capital those shares are up about 11% right now, 12% again on much higher than expected volume, on a dave portnoy tweet, about getting into cciv this morning you can see there, i had a billion people tell me cciv was the go button today. i bought

it i'll probably get killed. listen, here's the thing, if you can't spot the sucker in the first half hour at the table, then you are the sucker. watch cciv back to you. >> you learn from that quote about life in general, if you can't spot the sucker, it's in the mirror we are going, happy weekend, happy march, make sure you join us, "squawk on the street" is next good friday morning, welcome to "squawk on the street," i'm carl quintanilla, with jim cramer and david faber we will put the month of february to bed today, with more chop, futures getting stronger after the worst day of the month so far and a wave of earnings to digest, the house sets up a vote on stimulus, and of course we will watch rates, 10-year, 1.47. that's where our road map begins and investors are looking to wrap up a tough week for stocks, and as a rise in yield rattles the market