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 >> the fda is preparing a vote today on j&j single dose vaccine and pfizer saying goodbye to those special freezers, hp shocks the street, maybe, i don't know, dialing up growth in the most recent quarter. we will speak with the company's ceo, carl, a bit later in the program. >> a lot of corporate news to get to but jim, just macro view of the market, as we look at what the dow has done over the past 24 hours, you know, a lot of commentary from some traders saying yesterday, at least in the bond market, was the craziest day of trading they've seen outside of crisis days, in a long time. do you feel that way >> yes, i've got to tell you that the panic that went through many stocks, let's take nvidia, i thought nvidia was, had one of the best quarters and far exceeded everything particularly in data center and the stock went down almost 10% why? well, i had jensen huang, i thought he was brill yants but the bond market was the villain,

salesforce, bond market villain, it was almost as if it didn't matter what you had to say and how good, what mattered was the 10-year, david, at one point, the 5-year was crushing a lot of good stocks. >> listen, it's growth stocks, and growth stocks with yields moving higher were the one, and have been, by the way, not just yesterday, jim, but for a period of a number of, a period of weeks now, getting hit losing ground. as hard as it is to imagine. actually going down. as you look at where 1.46 and hit 1.61 yesterday, i think was the high on the yield on the 10-year. meanwhile, the banks obviously are beneficiaries and they've been quite strong over that period, as we pointed out many times. >> isn't it time that ran its course >> that was my question to you is it? >> i think it is my trust sold some of these. if you have inflation, you can't hide the banks it doesn't work. and yes, it can work for jay,

and rocket mortgage, but at a certain point if you want to extrapolate things, this will dry up that's what's supposed to happen. >> and when is this rotation out of growth stocks or at least slow down and/or reverse >> if we use the december 2015 to february 2nd, i think that is the great analog, because you had a rate hike, you have another month where people are skittish about these stock, particularly david, the companies that say, you know, look, we don't care how much we spend, we're growing, that works so great when rates are going lower but people just despise it when rates are going higher. it's the common thread of the companies that are really getting crushed here >> yes, and of course, i mean carl, we always want to put it in perspective, we look at 1.46, that's, you know, we all remember a time, during the last, i mean boom, of course, which we referred to many times in the late '90s, you can remember where rates were then they were multiples higher than they are now, but to put it in

perspective, it's higher than we've been in a while. >> yes, 30-year fixed guys is going to have a three handle before much longer, and of course, it was 2.65, all time low is 2.65 and the highest since august jim, to follow on david's question, names like splunk and peloton, down 30-plus from the highs. >> right. >> i mean does the inverse of your financial thesis work, do you buy them here? >> i don't know, i mean cathie wood's been selling splunk it seems to be a printing press that seems to be going by, cathie wood being the premiere investor at this moment and i think we will get oversold and you have to start looking at value, but you know what, value is now, value is something like apple which has come down, furiously, it's like facebook, it's just come down, horribly, and the business, i mean twitter is having a good quarter, and people are just saying, listen,

i can't touch facebook, facebook is very teach. david, you probably want to know, i got a 3.5 floating yesterday. >> i heard you mention that on "squawk. >> five year average >> two weeks ago, the same rate. so let's not panic if you're trying to look at the toll brothers quarter, it's not going to impact. jay farmer this morning, it's not going time pact. i think let's keep things in perspective. the rates are not moving nearly as much as you would expect yet, because i think that the mortgage people just don't believe in it. >> interesting and the mortgage market has, mortgage-backed security, there's different things that affect it, not just the overall. >> right. >> the overall rate. as anybody who has sort of looked and say, can i lock in lower now? no, sorry. it has to do with demand. >> demand is so strong, david. it's so strong carl, i've got to tell you, when you listen to doug, the ceo of toll brothers, i know a lot of people, when they hear an

executive say things are great, they think that it's overdone. doug yearly, toll brothers, they are, every house they'll sell, and by the way, these are not like the old days, 2007, 2009, you're buying them with cash and putting real money down. so before we just say this moves over and because lumber has doubled and because copper is 4.11, the home prices are not reflecting a new level of inflation, but they are reflecting a demand that once again comes from, we're going to speak with history p, yes, the move -- with hp, yes, the movement out of cities it doesn't stop. >> it doesn't stop we'll be left alone wandering the streets aimlessly. >> we will be speaking to enrique lores later in the program. very strong quarter. a lot of guests on the show, jim, we talked about it yesterday, an incredible lineup, specific to the earnings and back to this conversation about growth companies, perhaps no longer participating in this market in the way they had been, salesforce, very strong number, right? >> right.

>> nobody cares. the stock is down immediately. >> you mentioned nvidia. although i am seeing it looking up now >> i mean we managed to explain it, it isn't a crypto play, darn it, that's what people were saying, 2018, it did crypto and they got crushed and it happened again. that's just untrue. >> airbnb. >> i think that they told a story, i know, you have to be careful, because he used terminology, terms, but the leverage of the model is extraordinary, and every single new home, every single new host, is just additive it's incredible. and that's why this ebitda was so amazing this. may be, of all of the companies that are of that mint, that one period, including doordash, this company has a business model that is just extraordinary the more guests, more money, the more hosts, more money, and they're recruiting hosts, that's the winner of last night, of these newly-minted companies not doordash at all.

>> well, we listened to tony on "squawk box," and doordash shares are looking down but you can see airbnb quite strong and we will keep a close eye on nvidia, and salesforce and any number of the others including hpq also which reported strangely, earlier than anticipated yesterday. >> yes >> it was expected to be 4:00 eastern. but i think it was 2:30 or something. it was very strange. i thought there was some kind of weird break-in, some sort of emergency release. >> it was an emergency release you have to get these numbers out to the narcotmarket right nw we can't wait another hour and a half. >> and dell, too michael dell, david, unbelievable, but carl, this whole thing about having the office at home, the biggest winners are hp and dell because you have to have a duplicate office at home finally, printers. ink. amazing. why? because your home is your

castle/workplace and that's something once again, mark, the largest tower in san francisco, and it is empty, carl. it's empty >> yes it's been fascinating to listen to the spectrum of opinions, whether it's mark on one side, guys, reed hafrting, david solomon of goldman on the other, regarding the willingness and ability to bring workers back to the office full time but at large, there was talk about incredible revenue growth over the years and the dream of further growth ahead here is what he told jim. >> we have this a billion dream, you know, that so we're going to do more than 25 billion this year, but we want to more than double this company, in a relatively short period of time, and it's these existing contracts that are allowing that to happen. it's really, it really creates the momentum of the revenue over time >> benioff tweets jim, yearly revenue for i think the last 15

years yesterday and you can see the parabolic growth. >> yes, one of the things that i tried to point out but it was a truncated interview with a lot of ceos, they have 13 billion in cash, david, a lot of people don't like the slack acquisition, i disagree, i think it's going to be great, but one thing is for certain, he goes big when he does acquisition, ta b tableau was big. and here's my prediction dell, hp slack. look out microsoft. >> they will incorporate slack. >> they need the software. particularly you're aware you're working anywhere and i happen to love slack, and i think it's great and microsoft has a competing product and mark benioff has a lot of friends and they are friends who want to profit over what he has and be his partner and i think the slack acquisition, which is hurting the stock, just like the arm holdings acquisition pending is hurting nvidia.

and slack is under review. but i think that's going to happen. >> that's going to happen a second request which i don't think was fully unexpected and they're thot changing the date in terms of which they think they will actually be able to close that deal, jim. but to your point, it hasn't been, particularly well received, i mean the price was looked at as fairly rich when it was announced. >> yes. >> but acquisitions have been part of the strategy from the early days >> everyone's work, and everyone was doubting and why is it working, people stay, with a acquisition, they can't wait to leave, but everybody stays, they're part of what i call the ohana. >> the ohana >> the ohana hawaiian for family. >> got it. thank you. >> mahala. >> ohana. >> he's in hawaii most of the time. >> yes, he was outside and they did the conference call looking over the golden gate bridge. carl, we should be so lucky. we look at, i still can't get my car out of the snow.

>> i just look at mounds of trash. >> benioff used the word ohana in that tweet yesterday, jim >> salesforce has amazing revenue growth there's a lot of focus on names today that have actually zero revenue. namely virgin galactic and nikola, with market cap anywhere from 8 to $12 billion >> yes, i'm still waiting, david, did you catch any big partnerships with nikola >> no, i didn't. no. >> i didn't either >> no. >> i guess you looked at the release and things like that, like i did >> say it again. >> you looked at the release >> yes, i saw that they were correcting some errors in the record, correct >> correct >> right. >> namely that the early prototype was a fully functioning vehicle. >> right >> that was deemed inaccurate. >> i was hoping that i would see

gigantic deals and instead i was feeling work horse have you been following osh kosh >> i have. the united postal system and work horse went up yesterday. because they're reviewing the osh kosh guys, by the way, spacs, because we're 12 minutes in, we got to mention specific smacks, such an important part of the market and tuesday, though, the one traded up 8% they come at 10, and then traded up 8%. and wednesday 4,.1%. thursday, 2% so that's taking a lot of the little premium out there the hedgefunds have all just, give me the allocation on the spac, because i'm going to get 4, 6, 8, 10%, right away. >> interesting we'll see what they do today. >> you said the hedge fund, david. >> uh-huh. >> you know there is a whole cohort in this market that feels the hedge funds have the edge. >> yes. >> that it's unfair. >> the hedge funds are the ones

that are able to, right, who are a part of the initial distribution of shares in the spac, many of them also participate in pipes, it's sort of a -- >> why don't the people, when reddit, why don't they attack that process, as opposed to just attacking any hedge funds? >> i don't know. because then they come in, the hedge funds are happy to have them come in sometimes they're not what it appears. >> yeah. carl, it's a very exciting time. >> it is in many ways, guys. we'll take a break here. so much more to get to on this friday as we wrap up the month of february. lots of names we haven't yet mentioned including livenation, etsy, beyond meat, airbnb, twitter of course and keep our eye on rates and more signs that the vaccination process is gngoi to get a lot better in the month of march don't go away

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the fda panel is looking at the johnson & johnson one shot covid vaccine, and looking at pfizer's vaccine with normal freezer temperatures for up two

week, and the expectation given what we saw, but of course, we got to wait, and i'll rely on meg terrel's reporting as always, that it will be approved and i think it is 20 million dose, as soon as what, mid march? >> working with emergent bio, which is pumping them out. here is something that is odd about this >> yes. >> every time there en is approval we all kind of know there is approval and yet the stock jumps. j&j, it could run to 165, 166, and on no news, david, when have you seen no news move stocks >> rarely, although i mean look, take a look at pfizer, though. >> that's the thing. >> pfizer by the way, i mean, amazing. >> incredible. >> and moderna, and what they've done, and yet, guy, give me a 20-year pfizer because i would love to get your thoughts on that, jim. they had a lot of ceos there and in fact if you add up the compensation of the ceos at pfizer over the last 10, 20

years urg' talking billion, not million, but billion, and it's back, it's a 20-year long, 20-year, zippity do da. >> and how can an activist not go after them? >> how do you go after them? what do you do what's the plan? >> bitcoin i don't know i'm just saying, you see a fabulous company like that not generating they've done a lot of things they've been shuffling debt. they've been moving things around but what they need is growth >> they do but they've participated in one of the greatest scientific break throughs that we've had. >> and it juked up and came right back now and now dr. gottlieb said to me over and over again, because i say how can they suddenly relation it doesn't have to be refrigerated, and he said listen, jim, this is also novel,

we don't know and the nution that we just mentioned is very good for pfizer. >> there is some concern right now, about new variants, i think borelow was on with lester holt on nbc let's take a listen to what he had to say about that. >> how long for the time you discover a new variant could you tweak your current vaccine to make it effective? >> lester, our goal is to be able to do it in less than 100 days >> even more amazing, isn't it >> yes. >> 100 days. >> i'm going to drop a bomb here >> okay. >> i met moderna when it was just a little child. no, i met moderna, when i was hanging out at the jpmorgan conference, the health care conference, and this guy asked, came up to me, saying he loved the show, david, this is not an mrna messenger vaccine company for cove this is a new way to be able to stop diseases. and people i know who are

working with this company, know that they may have a vaccine against cancer >> excuse me >> a vaccine against certain forms of cancer. >> really? >> yes >> that's how powerful rna messenger is now i've been reluctant to say that but i have it from more than one source. two sources. both of whom are involved. and our, just incredible we're talking about a nobel prize. >> well, the stock is up a little bit that's quite something i want to hear a lot more about it. >> one of my sources was, i don't want to disclose, but said that this is, it's all preclinical. >> right. >> but remarkable. >> that would be quite a breakthrough but we've seen it already with mrna by the way the j&j vaccine not based on that. >> no. >> more traditional. >> right >> one shot. >> and still incredibly fast. >> would you take it so you can go out to dinner with me >> anything you want

i'll take it i'm not sure about the russian one? >> sputnik 91%. >> 91% of what >> spiking of vaccines, though -- speaking of vaccines though, jim, a reminder that cnbc has launched a tool to find state to state eligibility and the closest vaccine locations and data on the vaccine in your area and a checklist of items that you need for your appointment can be all found at "plan uryo vaccine.com," check it out we'll be right back. it's either the assurance of a 165-point certification process. or it isn't.

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as we wrap up february looking for gains at the moment, all three indices are trying to cling to gains for the month to date, the worst day of the month for stocks yesterday we will keep an eye on all of the names that are key on the

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let's get to "the mad dash" as we get ready for opening bell, a little more thank two minutes from now it's a friday, thankfully. foot locker, did i overview? >> one of the testimony themes this quarter is we should, continual themes this quarter is we should stay away from the really good big box stores and don't gravitate to them because they're essential and go to the nonessential, and then l brands and foot locker is the next big thing and they let us down 2% decline in same store sales first big miss in the mall, they're calling it and if you call into question, people are start wondering, have we gotten too excited about more base stores and as much as you want to have a reopening of america and you know i like simon properties we have discovered other ways to buy nikes, direct to consumer is nike stock and trade, and i don't know if i want to go to foot locker if i can buy a great nike, which i

can, at their site so i think foot locker is a challenged company and people are too bullish. they got too bulled up, as they say, in the hedge fund community that was supposed to be a deeply a part of it. >> you're not deeply a part of that when i spoke about spacs earlier, many other good allocations of the spac, ipos, many good ones around them and i didn't mean to say only hedge funds -- >> that is important because there was a an initial -- >> wall street bets. the redd people. gamestop >> i realize in saying that you can stoke some people's imagination and hostility and there seems to be plenty of that go around. why can't we all love each other. >> you know who came after you >> who >> portnoy. >> after me? >> he said something good about church hill -- remember when you ki killed lucid. >> don't even start on that. >> you're not smiling. >> because that gets serious

quickly. >> and what you did is save people a fortune why is that bad that you saved people a fortune why? you want to hurt people? >> i don't know. you know, we're just all on the take here, jim, that's what they all say. >> carl? >> guy, the opening bell and the s&p 500 and the bottom of the screen as we get into the final session of the month one name that we're going to keep our eye on as we mentioned earlier, airbnb, a loss, in their first quarter, as a public company, but revenue was ahead, a lot of price target increases for airbnb today, canaccord to 2.20, and da davidson 210, and piper 198 and chesski was on with brian last night. here's what brian said. >> i think we're seeing, on the -- >> okay, that was not brian chesski, but you knew that already. >> the expiration date.

>> when did he start running airbnb sandy, you can't keep him down. >> airbnb was a company that a lot of people felt was going to get killed because who is going to stay at somebody's house during a pandemic, and the answer is it is better than somebody's hotel and you brink your own clorox to a house and i got to tell you, he is just beginning to scratch the surface of what can happen here and he wants, he went to the south carol carolina, he wants to get people who are hosts a chance to own stock. that's the kind of capitalism i want, carl that's the capitalism i want. >> as has been pointed out a million times, the brilliance of model, jim, there is no construction or development of new properties, it's all built already, and they can shrink or expand depending on where demand goes >> yes i mean i was talking to him about how marriott is one-half the valuation of airbnb, and that that's just wrong i think it should be a quarter airbnb has the model to die for, it has no competition.

by the way, they brought hotels tonight, not that long ago, and when that comes back, that is a terrific app and it shows you as the night goes on, your price goes down and at 10:00, your price goes down 60, and then 11:00, lower >> and wait later and later. >> we're at the top of hotels and new york ape, it's $50 and then $40, and pretty good. >> that ispretty good. >> i do think we now have mr. chesski from his appearance last night. let's take a listen. >> we found that the travel that people missed the least is business travel. the next travel they miss the least is mass travel mass travel as getting in double decker bus, and going to big tourist districts and going and waiting in long lines where either alone or in line, looking at something, like behind a flood of selfie sticks, and i don't think that travel is over, i just don't think that is the travel people miss what people miss is spending meaningful time with people they care about and that's what we're

focused on and that's the travel that i think is going to come back in full force >> he's dead right what he's talking about is friends getting together and renting a house. versus the thousands of dollars that might be in a hotel and take the house down, and all your friends, and my wife, my kids, this is constantly what they do. i have a daughter,david, this is something that i thought was, you know, the only person who was doing it, she takes three-day weekends, meaning that she teaches and then she goes on her friday, saturday, she teaches in madrid, and she stays at somebody's place, airbnb, and it turns out the three-day weekender is a huge part of their business >> is it >> yes >> it is now a part of people's - >> if you work anywhere, why work at, why not work at somebody else's house. check it out. >> it's very exciting. chesky has the despite gzeitgeis more than anybody i saw. and boy is travel going to come back. >> why are you laughing?

>> we have gamestop. it cracks me up. what can i say. >> i think the guys in the booth, they just produce their own show and we sort of talk on the side. jim, it's kind of like twitter conversations, we're having a thing, but they're also having a thing. >> yes and i love the fact that andrew referenced my, that we get gamestop, to be able to be a clearinghouse for crypto, because nvidia is going to have crypto, they're going to have ethereum cards, you have to buy them - >> did you have to come back and actually talk about it >> what? >> gamestop. >> well, i mean david, i mean there's gamestop, and then there's every other company. >> yeah, i guess. >> david, have you ever read "to the finland station". >> no, but you brought it up many times. >> i probably should. >> have you read the bolsheviks. >> i did take some russian history. >> have you read anna karenina. >> i may have tried. >> and they want to try to throw the hedge funds on the tracks. >> i always love leven

leven is a character i really love. >> how about focusing, we have a lot of names that are up apple is up. facebook we're seeing a bit of a rebound. with the nasdaq up about 1% right now. jim, a fakeout here or do you sort of kind of creep in to some of these names that you said are starting to look a little cheaper, even on a good old-fashioned multiple to earnings >> i think you have to i mean there's too many companies that, look at proctor, we had david on this week, with an interview, and they are doing so well, and you get it, it's terrific, and viewed as a company that doesn't do well in opening, people don't want it, and it's crazy it's just crazy. by the way, i just want to come back one, moderna, where i'm getting my information, is from people who have do preclinical, so preclinical could be wrong, it may not work, but the preclinical stuff that they're trying to do is what i said. it does not mean they can succeed. as we know, david, many, many

drugs fail there's 2,000 drugs being developed right now just, now, and they're trying and i want to be clear, they don't have it, and trying and very different from a lot of other drug companies that are doing me, too, and there david is the problem with pfizer, people view them as doing a me too job and moderna is trying to do more of a break through job. >> the pioneer. >> which you can fail. how many times have we seen, biotechs have something that we thought, you know, and carl, it could be, i don't want to get people's hopes up, i know that those who got their hopes up for certain anti-cancer drugs, like i did with my mom, were dashed, but i do think that at least moderna is going with it >> your broader point, jim, about the generational change, in science, as a result of the mrna platform is real. i know walter isaacson is writing a whole book about it. so we will be talking about what happens in thooet these past few years for maybe decades to come

and hopefully as good and strong and promising as you were suggesting, we'll have to wait to find out. speaking of vaccinations guys, the ceo of walmart u.s. on the "today" show this morning talking about, jim, this move by private enterprise to help out with vaccination sites, the delta museum in atlanta, walmart says they think they can do 13 million doses a month, as we move into the month of march, and we've already got hospitalizations down, not just below the january peak, but below both prior peaks, last year. >> the hospitalization and vaccination trend is very strong. >> and every one of these moves interest rates up. as people say, why are they debating a stimulus package, why aren't they looking at what these companies are doing, and the stimulus package has been hit an exact long time and david, i disagree with me and if you're unemployed, is is an exact long time, but the bond market is sensing this is a

spring where we are reopening and why are we throwing money, why is the treasury throwing money, the congress is throwing money, if we're going have all of these different methods of getting vaccines do you think that that is a legitimate fear? >> it is a legitimate concern and we've talked about it for weeks and it's been reflected in the move that we've seen in the bond market that there will be inflation, although there is a belief and i defer here to our colleagues who know a lot more about this than i do, but there is a belief that powell is not going to, they're not going to respond. i mean listen to the parade of guests we, have and they're just going to take it, if there is inflation, that's okay, because they're much more focused on getting the unemployment rate lower given the 10 million people who don't have jobs who did a year ago, almost a year ago exactly at this point where we started it get serious about the pandemic, and then moved into those lockdowns guys, i did want to get to a transaction this morning, one that we've been waiting for, for a long time. i reported on it, it was back in october, we don't need to run the tape, but it was back in

october when we told you, much to perhaps the surprise of many then, that at&t was thinking of only selling a minority stake in its directv unit and i think i reported, i think it was october 7th, that they would sell 30% and that actually turned out to be exactly what they are doing the buyer is tpg the total enterprise value for the deal for directv is $16.25 billion. they say in a printed q&a here, they say, listen, it's fair to say that some aspects of the transaction have not planned out as, panned out as we had planned such as paid tv households in the u.s. declining at a faster pace across the industry and that refers to buying the company for over $49 billion 66 enterprise value. mike white if you're out there, you get the big check, one of the great sales of all time, to at&t but what this does, for at&t, is it deconsolidates the results from its balance sheet, from its income statement, when upon

close, it gives it 70%, in an independent entity now, that will be run by, it is somebody at at&t who is going to run it, they're moving, but with tpg, and at&t, 50% governance control and it gives an opportunity to try to create some value here that at&t will benefit 70/30 in, from whatever happens from here and they will get money to pay down debt, because directv will go out and borrow, about $6 billion, there is also a pick preferred of about 4 1/4 billion as well. so they borrow that money, they pay a dividend to at&t, at&t takes that, pays down some debt, and they move on having separated finally, at least in this way, from, well, from something we talked a great deal about, a terrible deal, done at the time, they obviously will indicate certain reasons why it wasn't as bad as you might think. by the way, jim, real quickly on

their balance sheet, 26 billion in free cash flow, and that's the low ball number. dividend cost, 15. and they're taking in money from dte. taking in money from the sales, and they will have 20 billion of extra cash, that's going to go towards spectrum >> so their response to you is don't worry about our dividend but the spectrum auction turned out to be the big winner, it is t-mobile, right? they spent the least. >> right and how about towers a lot of the tower stocks are going down but there will be a lot of money going to towers is that just ancillary, you don't have to worry about that cost >> i don't know. i don't know >> i don't know. >> i'm working ton. >> you can see at&t though, carl, it continues to be a frustrating stock, at least for management at this point, which feels like they had a very good quarter last quarter, and they finally figured out this disposition, but so far, not much of a response in the market >> yes, it's a good story and watching it for a long time, david. >> a bit of reversal on the action this morning, nasdaq is positive, dow a little bit more

challenged when we come back, hp is getting a bit of a lifton this quarterly beat and guidance above the street, we will talk to the ceo live straight ahead, along with chicago pmi don't go away.

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a nice little diet of eco data, perm income and spending and now chicago pmi, let's get to rick santelli hey, rick. >> hey, good morning, carl yes, we are expecting our february rate on the chicago pmi, and of course, we had one of the craziest bond markets, that i've seen in decades and this number is expected to be around the 61, 62 camp i do remember our last final january read was solid, just under 64, and a bit of a disappointment here. 59.5, 59.5 is the february pmi number, and of course, this sequentially follows 63.8 as i mentioned and it is a definite pullback, but we certainly expect as we move forward to see some of these manufacturing data points start to surge in a very

similar fashion to some of the recent manufacturing data. carl, jim, david, back to you. >> thank you rick santelli with the bond report. hp as we told you was out with an earnings beat yesterday driven in part by demand and the consumer business, and of course, people working from home, it has helped the company. and joining us is enrique lores president and ceo of hp, the stock is up 7% and enrique it was certainly a very strong quarter, i know you're going to talk to us about that, but if you don't mind, i'd love to hone in on these supply shortages that your company is potentially facing and could impact your profitability in later quarters. you're seeing it on both the pc side, and the printer side, and just go through that for our viewers, please, tell us what you're seeing and what your expectations are in terms of perhaps not trying to get a hold of enough components that you have. >> thank you for having me here. good morning before i talk about that, it is

really the strength of the demand that we're seeing both for pcs and printers. yesterday, you have in mind, the pc market this year is going to be 45% bigger than the projection we have made only 18 months ago and for many of the components and players, it is very hard to respond to that demand as we said yesterday, we expect the shortages to continue at least through q3 but all of it is reflected in the guidance that we provided yesterday, that drives us, with significant investment, and performance that we felt for the year, and of course, if we find more components, we will receive more products but at this point we have very strong confidence in the numbers that we posted yesterday. >> we're looking at those numbers right now. so obviously it is a high class problem as we see, a great deal of demand puts strain on supply. how, when do you see this getting resolved >> at least we think it is going to take at least three more

quarters, because as you have heard from other industry, it is very strong demand for components we are driving that, and with all of the technology, it is involving us as well, with the technology, it is strengthening the demand for electronic components >> and enrique, congratulations, you always keep us up, and i think this was the quarter that you predicted a couple of years ago, but it did seem to be accelerated by obviously work at home how far along are we, in terms of people developing an office at home, given the fact that most of the companies that i know and i talk to are going with a hybrid way, you can work at home and at the office and where are we in terms of office development at home? >> i think we are feeling that these figures, this is why we're confident that the numbers that we posted yesterday are going to be sustainable, for several quarters when we think about what is going to be the new way of working, we think it is going to be hybrid. people will be working from

home, will be working from the office, and this is opening a lot of opportunities for us, opportunities in the office space, as more will be sold, and opportunities that the company will have to meet, to print at home, in a secure way, and we announced a new service, to support that, as well. so really, this is opening up opportunities for us, that we think will continue over time. >> you once again teased something that i think is very real for you, and very exciting, which is 3d printing, and micro fluids for micro fluidics, are so much ahead on 3d printing and you don't talk much about it, can you give me what will be material in the next two or three years. >> we talked yesterday about the growth that we're seeing in printer parts, which is within the best way to show the growth in the industry, and as we share the printer parts, the printer parts grew more than 50% this

quarter, which is an unbelievable number, and it is part of our company, we are a $60 billion company and to be material, you have to be very big and i think it will be more than three years for it to be showing. >> over the next three quarters, you bought back the have bought back the equivalent of 13% of the outstanding shares in this company buybacks are an important component of your capital allocation you described an area potentially rewarding. is buying back all that stock the best use of your capital >> we think so the question, we are doing both. we have continued to execute on our share buyback program, which is what we committed to shareholders a year ago. but we're also using our capital for m&a. this week we announced an exciting m&a in the gaming pace. we are going to be leading the headset category for gamers. and this shows that we are going

to constantly look for opportunities to use our capital for m&a in our core businesses, in our new businesses. and we will always do that >> so you don't think you are going to look back and regret perhaps having bought so much stock back and not devoted enough to r&d, or you make your allocation every year and are making decisions based on the opportunities sue he in front of you? >> we are going to make the decisions supporting our strategies for us to do m&a is to support the strategies we have explained and we will have a strong operational plan and let me remind you that we are a cash generation machine. we also announced yesterday we expect to generate at least $4 billion of free cash flow this year. so this has room to continue to buy back our shares, which we see a good investment. and also to increase m&a if we

see the right opportunity. >> enrique, you do have a pretty cool plan about being, basically, a member, a subscription business for printing i didn't think you could really take off i was critical, felt how big can this be. i guess it's the way to be able to, if you work at home, you want to subscribe. >> if you want to work at home this shows the strength of the value proposition we have. when we met for the first time two years ago on this topic, we had about 2 million subscribers, jim. today we have 9 million subscribers in the program we are 1 million subscribers added last month again, supports our strategy and gives us great confidence on what is going to be the performance of the print business in the future >> finally, chromebook revenue quadrupled it may be not off that large of a base, but what is going on with that particular product

>> technology has become essential, and especially in the education space. and chromebook is leading that growth almost in every country of the world we see governments buying pcs or chromebooks for the kids to learn, to go to school, to attend school from home, and again this is another trend that we think is going to continue. the pandemic has accelerated that but once schools and kids learn the advantages that technology brings, we think this will continue to drive growth in this area in the future >> all right why did you release the earnings early yesterday? was there anything behind that >> no. there was a human error. as soon as we found out, we conducted an nyse, we stopped trading. we did the release and i think it was a non-event and we reacted very fast. >> enrique, appreciate it. thank you for joining us. >> thank you hp one of the names leading the s&p this morning behind etsy we will take a break here.

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gainers for the week so far. you got some m&a plays in there with the peoples united and the m&t deal a lot of reopening plays as well energy with marathon, cruise lines with royal caribbean, vornado and american the ceos of some of the airlines meeting at the white house today. more "squawk on the street" is back in a moment

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button up this crazy week tonight? >> on fabric, work day, derivative, a cloud company doing well and then arista, a brilliant person in taking a lot of, let's say, hyper -- when you have hyper connectivity, data center, you have to be thinking arista they are doing a very good job wow, everybody have a great weekend. >> jim, you, too see you tonight. "mad money" 6:00 p.m we'll see you, jim

welcome to another hour on "squawk on the street. i'm carl quintanilla with david faber and leslie picker. let's get to rick. >> yes, this is a fine read, carl we take that 76.2 mid-month three -- excuse me, the 76.2 mid-month read and toss it and it now becomes 76.8. 7 76.8 is the february final read. it's not bad to put it in perspective, the final january read was 79.0. some of the other embedded issues here, some are quite important. if you look at current conditions, it, basically, is lateral from our mid-month, 86.2 and remains at 86.2. 69.8 is expectations then it got modified that was the mid-month now 70.7 a nice improvement there one-year inflation 3.3, okay? 3.3 is the highest level of one-year inflation in this series since august of 2012 when it was 3.6

if we look at 2.7, which is the five to ten-year inflation, yes, the same as the mid-month read the final read but you have to go -- and there is a lot of 2.7s you have to go back to january of 2015 to find a 2.8. the point of this is, is that we want to watch every possible way to measure inflation why? look at ten-year and 30-year bond rates across the world. that's what they are lacking at. carl, back to you. >> a global story. see you later. rick santelli. a couple of big earnings movers to get to this morning a day after the market saw that bout of volatility with the five-year. etsy is leading the s&p this morning. airbnb, doordash going opposite directions in their first reports as public companies. leslie, you know, it really was interesting in a good view from companies that are relatively wrong. >> exactly both of those companies, airbnb, doordash beating expectations on the top line cnbc doesn't do, you know,

compared to analysts a expectations on the bottom line. on the top line they looked strong both reported losses but really netting each other out, you can see doordash up more than 4% -- sorry, doordash down more than 4%, airbnb up more than 4% really that's kind of harkening back to what we were hearing during the road shows, this idea of resiliency with the pandemic. the question turns to the future once the pandemic subsides, which of these companies are poised to benefit? airbnb making that case to wall street in its earnings report saying there is -- and told cramer this last night there is this kind of blurred line between life, working, and travel now that they are really poised to capitalize from, whereas doordash saying, carl, that, you know, they do see sort of a depleting demand after things, you know, go back to normal, people are eating in restaurants more

so that's similar to what they were saying on the road show, what they were telling investors at the time. of course, there was such a frenzy for both names. those stocks have remained high. then kind of complicating matters further, the fact that they have remained high could trigger a release of the lockup provision in the next couple of days are so, which would unleash supply, you know, and that can also pressure those names. >> yeah. indeed silverman of etsy was on squawk earlier this morning, had interesting comments about bitcoin, which he has personally owned for six or seven years, an talked about expectations for retail sales a lot of projections say we are going to get some of our best growth on retail sales in a couple of decades. here's what silverman said about that. >> during the pandemic, people can't spend on travel. they can't spend on dining so they are spending a disproportionate share on retail, and when they are spending on retail, they can't go to the mall, so they are spending a disproportionate amount on e-commerce

>> that's going to get interesting, david the view from powell earlier in the week was that services are going to be the first to see a rebound in demand, but depending on what part of the economy you're looking at, arguably, there will be a series of goods people can't get enough of once they can go out. >> services would certainly be at the top there but it is also interesting in terms of trying to determine these companies that are going to face very difficult comparisons. perhaps doordash or earlier conversations home depot or answer a lowe's. those that benefitted in certain channels from people being at home all the time. versus those habits, leslie, or those -- that have -- those behaviors that have changed. airbnb, maybe just a long-term beneficiary. perhaps etsy as well, reflected it this their share prices today, long-term beneficiary of changes in behavior that will last beyond when we can be out

there congregating with each other again. >> we look forward to that, dave, for sure but, you know, carl, to david's point, it is a huge question that investors are grappling with right now which of these habits will be, you know, specific to the parn and which one will exist beyond that with the etsy play, he also made some interesting comments just about kind of the consolidation of e-commerce and the fact that people may not necessarily be going to as many different sites in the future and they are only going to be able to kind of remember in their brain a certain number of places to actually purchase things i thought that was also pretty interesting etsy clearly doing quite well this morning, up about 7%, carl. >> yeah, i know. i am looking at a piece now about the live nation quarter arguing for the ceo saying u.s. festivals could reopen by midsummer. how amazing that would be. talking about all of the volatility yesterday and the action that we saw in fixed income, let's bring in the

director of floor operations for ubs. happy friday thanks for taking some time. >> my pleasure happy friday and happy farewell to february. >> yes we'll be glad to set it aside. art, you are awfully good at looking through short prds of craziness that jar most of the market how much of yesterday do you think was truly historic >> well, i think that if you look at the short spike in the vix and if you look at those rather disastrous looking wash out in the events versus the declines, normally, carl, lows are of a type seen in washouts you know, when there is a selling panic. and there were strong aspects of the selling panic yesterday. much of it related to the bond market the fear is growing that if the

opinion grows, that the fed has lost track or lost control of the market, and that's what that, some of that panic selling was about yesterday. >> i have seen a lot of commentary, art, this week from the street and from some business press that rather than fear, this action in the market, that the benefit from a stronger economy is going to outweigh the drag from higher rates and this is welcome to what a recovery looks like do you have a problem withthat >> not a big one in fact, up until recently, i thought the markets were incorrectly worrying about the fed and inflation and a variety of other things because, if you just go back to before the pandemic started where rates were, and the pandemic set in, and rates virtually collapsed. so i thought that the yields

were coming back pretty much on just that whole reopening, you know we are going to get back to business again so i think that's there. as i say, you have to be very careful. there is a fine line if the market begins to believe that the fed has somehow lost control of where the bond market is going, you know, all that idea of a tantrum will show up because if the market begins to believe that the fed lost control, and the fed senses that, there is a chance that the fed will overreact so we're in very potentially volatile period here maybe for some of the wrong reasons. but the commentary yesterday from bollard and williams about inflation is not high enough to bother us, it's there, and to your prior conversation about

whether you're seeing it in services or materials, the housing boom is evident. we have got lumber at an all-time high. copper used in the plumbing and whatever moving up very sharply. so we're beginning to see some inflationary pressure just on the whole reopening aspect but the viewers should keep in mind what's going to happen if the market begins to believe the fed has lost control that's the most dangerous. >> art, it's david i also want to get your take on the market action right now. the nasdaq started up 1% we are now negative by a quarter of a percent the s&p has rolled over, down 0.5% any levels we should be keeping in mind here >> i would carefully look, if you really start to see a sell-off, look at the nasdaq, the 13,000 level that was the intraday low on tuesday. you stayed above it in the

kwashout selling yesterday that helped bring about some of the late buying. if you were down and punch through that, i would hold on to my seatbelt. >> art, leslie picker here i want to get your thoughts on some of the retail activity we have been seeing lately. deutsche bank out with a note that u.s. stimulus checks could unleash $170 billion that's a wave of fresh retail inflows potentially into the u.s. stock market. they highlighted a survey of retail investors who plan to put 37% of their stimulus cash into equities so what does that say to you about a potential for a growing firepower with this growing group of net marginal pbuyers o potential net marginal buyers of stocks >> yeah, well, i think you're seeing that. unfortunately, some of the young and inexperienced may be getting played around with in things like gamestop and whatever if you notice the latest play in

that reddick/gamestop area seems to be people using out of the money options. and if you recall when they had the bear rates on lehman and on bear stearns, twhawhat they dids run out and buy far out of the money puts and say, oh my god, look at that, somebody must believe this thing is going to collapse i think that's what you were seeing potentially in gamestop and others people take positions and perhaps in the money options, then go and buy something $100 out of line. and then go on a chat room and call everybody, hey, did you see that somebody just bought a whole batch of options, 100 points higher than where we're trading. what does he know? and you get a lot of inexperienced people saying, oh, that must be important, and they go in and start buying that's why i hope that the etsy and others begin to look at the possible manipulation here 60 years of doing this stuff, that tells me that trading has a

certain odor to it >> and we know regulators are always trying to catch up, art there is a lot more we can talk about in the days and weeks to come good weekend good luck to the ice cubes see you later. >> amen, and welcome to march. thank you. >> oh, yeah, march coming up, more on gamestop and what regulators are looking at as well as that stock's volatility, well, art was talking about it, it's back. and later, netflix announcing it will spend $100 million to improve diversity in film, co-ceo ted sarin dose is going to join us to talk about that. "squawk on the street" will be right back here. don't go anywhere. at fidelity, you get personalized wealth planning and unmatched overall value. together with a dedicated advisor, you'll make a plan that can adjust as your life changes, with access to tax-smart investing strategies that help you keep more of what you earn. and with brokerage accounts,

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the street." a gamestop short squeeze led to the near denies of several hedge funds, including melvin capital. the founder told congress last week he now has a data science team monitoring those messaging boards like reddit he is not alone. data vendors who scrape social media sites to see what stocks are loved and hated say they have seen a huge uptick in demand from investors. these fund managers aren't just looking to use this data to sort investment opportunities or do due diligence on names as they've done for years, really decades, increasingly they are using the data for defense as a way of protecting their portfolios but here lies the problem. social triggers for stock prices are not always recognizable by

traditional algorithms think this week's ice cream tweet that set off shares of gamestop or the use of emojis like diamonds and rockets and others that can pose a challenge for hedge funds looking to decode the latest lingo and create wrinkles for regulators investigating some of the recent retail-driven volatility so for more on what potential regulation could be in store, let's bring in amy lynch, former s.e.c. compliance offer and founder and president of front line compliance. thank you for joining us today there is a lot of confusion as to what's behind the gamestop surge this week. can you give us your take, and whether or not you see any problems here? >> thank you for having me on the show today, leslie and, yes, the key point here really is the timing so if you look at what happened back in january, it was the last trading week of the month when

the activity first occurred, and the short squeeze was on now we are in february it is, again, the last trading week of the month. i believe that is no coincidence because what do constitutional money -- institutional money managers and funds do at month-end? ne report performance. so right now these entities are looking to cut their performance figures for month-end. in my opinion, there are institutional players behind this they are the ones that are truly driving this trade in order to pump up performance at month-end so they look good. >> how easy is that to do? and is that illegal in and of itself if you take a relatively liquid stock with relatively high short interest, although in gamestop it's come down quite

significantly, the lowest in years, you know, does that count as manipulation? >> i think it can, and right now that is what the regulators are looking at so now we have had a pattern that we are seeing we have two months of this we definitely have an interesting timeline to look at. i don't think the february trade will be as successful as the january trade because there are two things working against it. number one is that the shorts are pretty much out. so the short squeeze is not there really as part of the equation now and february is a short month. and the last two trading days of the month are on the weekend so no trading. so they will have difficulty getting it to where they want it this month i think next month will be a huge month for this trade if it continues because then we are dealing with not just the month-end, but we're dealing

with the quarter-end so everyone reports performance to their clients at quarter-end. so if this is the case, if what i say is correct, we are going to see this trade really pop in march. and the regulators are looking into this and they are going to catch on real quick. >> right i guess it's a fascinating thesis, amy. the question would be, to what degree do the markets' nerve endings for this commentary get deadened over time and get call calloused over the bouts of volatility for regulators, leslie's point was about to algorithms are trying to read that commentary for the regulators how can they c conote intent giving these references are so owe leak >> that's true i think they have to use what means they have available to them to do their investigation

and their analysis no one has the magic key for how to interpret an emoji or a picture tweet. so they have to go back to their old-fashioned analysis and look at the trading data, who are the counter parties involved in these trades, especially looking at trading activity close to the close because that's another indication that these are professionals that are coming in, you know, close to 4:00 p.m., bags the close, as they say, trying to prop it up that would be an indication, if they are looking at the trading, the counter parties in the trade at month end, they are going to get good insight into perhaps who is behind this. >> if it is institutional investors who are the ones prop up these volatility, you know, do you think that they are taking advantage of what's going on with retail right now is it a coincidence, for example, that this is happening with gamestop specifically, which is almost just synonymous

with reddick, robinhood, retail investors, hype, excitement, and so forth >> right it is interesting that gamestop is the one that they're really going after. so it's possible that there is even more involved i hate to say it, but maybe there are some insider trading issues there is something like this that that could be the rationale behind that particular issuer. of course, there are other issuers that have been involved in the trade it really depends how sophisticated is this scheme, and regulators have to unwind it and determine exactly what has happened is it pump and dump? is it market manipulation? is there insider trading attached somewhere as well so there is a lot of things that could be happening, and we'll find out once the analysis is completed. >> we'll be waiting for that time amy, thank you very much for joining us and sharing your perspective. appreciate it. >> thank you for having me have a good day.

that let's get to the "etf spotlight. we are looking at the vanguard communications services etf vox. up nearly 40% in a year. one of its top four holdings a major reason why, and that's netflix, seeing gains of 45% over the same time period. speaking of, we are going to talk to netflix's co-ceo ted sarandos next hour on "squawk alley. stick around for that exclusive interview. we are back in a moment. ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

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we are continuing to monitor the fallout from winter storms that swept across texas. of course, derailing the energy grid brian sullivan joins us from houston. man, they came so close, brian i listened to your reports the other day to having a catastrophic failure >> reporter: yeah, i mean, david, as bad as it was, millions without power for days if one if not the worst storm in texas history, four minutes 37 seconds away from your word, their word, catastrophic

failure, potentially month-long rolling blackouts. unimaginable given some of the damage that we have seen that families have suffered mostly from burst water pipes, et cetera what's going to happen as we go forward? well, a lot of anger a lot of -- coming from the hearing yesterday, will changes be enacted an enforced that's going to be the question. so let's talk about texas. biggest energy producer and consumer in america. takes a lot of power to run a refinery like this one behind us if there are calls for winterization, if there are calls for new buildouts, if there is an infrastructure bill federally in congress from the biden administration or some combination of both, we know this there is going to be a lot of money that needs to be spent to upgrade the infrastructure, particularly in a state that has seen 2 million new people move here in just the last five years. so, good folks at thompson

research group put together a list, not complete list, they cover some names, not others, of companies and stocks that may, again may, see a benefit on a macro level, quanta services you have got vulcan materials, u.s. concrete, martin marietta for the foundations, sort of the bulk of that, if you will. on the turbine side, owens corning. a lot of people think of insulation a large part of the wind turbine blade composite material may come from them g.e., the danish company vestas as well families, we will show one tonight on "the news with shepard smith," who had burst water types. you are going to sea masco and ferguson, some of the plumbing supply companies that may do well there are no plumbing supplies it's month-long waits.

of course, home energy generation a lot of people are saying, you know what? forget the grid. i am going to be my own grid you got a name like a tesla, absolutely, with the wall packs and generac. they have generators and a competitor for tesla on the wall pack as well not a complete list by any means, but those are some of the companies along with jacobs engin engineering to build out new refineries, power plants, wind turbines, solar farms. ironically, guys, we may see more natural gas production because you can't have a shortage like we had last week where the pipelines were old and they weren't winterized, froze up we are going to need more of everything, especially if texas continues its growth carl, i did this for you this is random but interesting i know you are a movie buff. i don't know if you recognize this prant behind us here, but this is the factory or the refinery where john travolta worked and filmed "urban

cowboy." random but interesting i am not going to dance. gilley's is down the road. it's closed. >> that's great context as always, brian. and it's going to be fascinating to, as we move into summer and fire season, whether we hopscotch between texas and california with these stories about utilities. amazing work amazing work, brian. brian sullivan watching the texas power picture this morning. as we requgo to break, we are g to talk to josh bolton much the business roundtable about the brt's vaccine initiative as the s&p's is bea le the 50-day for the first time since late january. (it's a skirt... and shorts) the world loves a hybrid. so do businesses. so, today they're going hybrid with ibm. a hybrid cloud approach lets them use watson ai to modernize without rebuilding, and bring all their partners and customers together in one place. that's why businesses from retail to banking

are going with a smarter hybrid cloud using the tools, platform and expertise of ibm. new projects means new project managers. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home.

♪ welcome back i'm rahel solomon and here is

your cnbc covid update an advisory panel is meeting with a vote expected at the end of the day on whether to recommend to the fda that it authorize emergency use of johnson & johnson's one-shot covid vaccine. it's expected that the outside experts will endorse the shot and the fda could give its okay as soon as this weekend. the company says that it has 4 million doses ready for immediate shipment. and as the j&j shot becomes the third ventura county being used in the u.s., white house planning a campaign to counter concerns that because it's slightly less effective than the other two, it could perhaps be used more in underserved communities. nbc news reporting that administration covid advisors are circulating talking points stressing all three vaccines provide strong protection and will be distributed evenly and canadian regulators have approved the usc of astrazeneca's vaccine. with no domestic production of its own, that country's vaccination program has really struggled. carl, back to you.

>> rahel, thanks. later on today the house is going to set up a vote on the president's $1.9 trillion stimulus proposal. a senate official says the $15 minimum wage will not be allowed though even though the house is ostensibly going to try to include it joining us to talk about that and a new vaccine rollout is josh bolten, president and ceo of the business roundtable happy friday >> thank you, carl nice to be with you. >> let's start with the vaccine rollout. it's called move the needle and we have talked a lot this morning about the way in which the brt and its members are starting to help out with distribution there is a museum in atlanta the ceo of walmart u.s. on the "today" show this morning. what is the mission of the initiative >> the mission is to promote the things that are working against the pandemic, and that is to

maintain masking and social distancing and for everybody to get vaccinated as soon as they possibly can and there is a lot that the business community can do to help on all of those fronts, and with this campaign we're doubling down on what we ain the business community have been doing throughout the pandemic, but we are really making a concerted effort to do our part in making sure that people are staying safe and getting vaccinated as rapidly as possible >> do you think in the short term the more acute challenge is going to be about physical distribution, logistics, getting jabs into arms, or more about acceptance, getting people educated and to a point where they will be willing to get a shot if and when they can get one? >> yeah, that's important, carl. in the short term, the challenge is supply of the vaccine but, hopefully, that will shift

very soon, maybe in a matter of weeks, and it won't be a supply problem. it will be a demand problem. polling shows that a lot of people around the country, especially in communities of color, are hesitant about getting vaccinated and so a large part of the move the needle initiative that we have going is to do everything we can to get the right information to the vaccine hesitant, and, hopefully, encourage everybody, once they are eligible to to get vaccinated we are a few weeks away from that you are right, the supply problem is the constraint right now, but, hopefully, we will flip very soon to a demand problem and we're greearing up very actively with a bunch of partners in the business community, with the ad council, with the covid collaborative to do everything, everything we

possibly can to get as much of the country vaccinated as quickly as possible. >> weeks away. sounds good to me, josh. i am curious you sent a letter earlier this week to congressional leadership urging for more of swift enactment of covid rescue legislation. you know, how critical is it that theres actual funding behind this to really ramp things up? why is that so important and will get us kind of to that point b from where we are today? >> well, there is hundreds of billions of dollars in urgent federal need right now to make sure that all of the elements of the infrastructure is in place to get people vaccinated that's a large part of the bill that's currently pending in congress it will help get people vaccinated rapidly there is money needed to help

schools reopen rapidly and there is money needed, while the pandemic is still badly suppressing our economy, there is money needed to support the most vulnerable. so those are the elements of the package that's pending before congress that we think is urgent and needs to be enacted as soon as possible. >> and, josh, in that same letter you urge lawmakers to focus on rescue now, recovery later. you note that the business roundtable supports an increase in the federal minimum wage, noting it should reflect regional differences in wage rates and not undermine small business recovery. that's a direct quote from the letter there carl, obviously, mentioned the minimum wage aspect earlier. how far does this kick the can down the road, the fact that it's not going to be a part of this latest round of stimulus? >> i wouldn't call it kicking the can down the road. i would say that withholding on

a minimum wage increase at this moment is absolutely essential because we still have an economy and a lot of especially small and medium-sized businesses that are teetering on the edge or at least quite vulnerable so a minimum wage increase, jamming that through the congress at this point we thought would be a big mistake, and we are hopeful they won't do it now but we do need a minimum wage increase in this country $7.25 is way too low, and so congress needs to do it thoughtfully, hopefully, on a bipartisan basis, and raise that minimum wage in a way that does minimal damage to job creation, especially in the small and medium-sized business sector. >> josh, one would hope the biden administration perhaps would be reaching out to business to try to understand exactly what would be the right number, an i just wonder, in

terms of general communication between this administration and the business community, to the extent you are aware of it, how would you characterize it? do they seem interested in hearing from you guys? are they talking to you? >> yeah. they didn't consult us about the minimum wage, but they have consulted us on a broad range of subjects overall, the communication between the biden administration and the business community, from my perspective, has been terrific query whether they will really listen to. the signs are that they are sincere in our outreach. but the breadth and depth of the outreach so far has been nothing short of remarkable, and i commend the white house for it >> josh, finally, i have a question just about your

longer-term, the brt's longer-term priorities let's say for a moment we get stimulus settled let's say for a moment we get near-term supply chain troubles settled. between immigration, infrastructure, and trade, vis-a-vis china, what do you think comes first? >> well, the relationship with china is just going to have to be managed all the way through but really the most important thing to be done for the economy right now is a major infrastructure investment in place. you know, all of the stuff that is going on now to, basically, support people through the pandemic, that's important that needs to happen but it's not going to lay the groundwork for the economic growth that the country needs. the economic growth comes from improving productivity, and what's holding back american productivity is a crumbling

infrastructure so we need to invest in our roads, bridges, waterways, broadband. the country desperately needs all of that because we have enormous potential in this country. i mean, you can look out on the horizon and see extraordinary growth that lifts most rapidly those at the lower end of the income perspective but what we really need to do to get that growth going is improve the productive capacity of our economy, and that means infrastructure everything you mentioned, carl, is important immigration is important dealing with china is important. but the best thing that, as a big public policy matter we can do, is make the infrastructure investments that this country needs. >> that's going to be an interesting policy debate as we move past some of these pots on the front boiler

josh, thanks so much for the time it's great seeing you. please come back josh bolten of the business roundtable by the way, nbcuniversal has launched a tool to help users find state by state eligibility for the vaccine. the closest locations, data on the vaccine in that area it has a checklist of items you may need for an appointment. it's at planyourvaccine.com. >> it's remarkable, carl i have played around with that a little bit. coming up on "squawk alley," a rare exclusive withnetflix's co-ceo ted sarandos. hear what he has to say about improving diversity in film streaming content and more "squawk on the street" returns right after this break rol software giving everyone a shot at vital vaccines. break break break is shepherding medicines break. through every step is of the cold chain,es helping track conditions to keep each dose safe and effective. emerson. consider it solved.

with rates on the rise, two market watchers share their top ways to play it. find out me oron tradingnation.cnbc.com more "squawk on the street" coming up.

it's been a busy friday morning for santelli the santelli exchange. hey, rick. >> good morning. thank you, karm. you know, when we listen to jay powell and the fed they put a n nice spin on the rise in interest rates and everything they say is 100% accurate rates going up, many times is part of a whole package of issues, one of which is improving economy. many times it's also stock appreciation but there is also many other turnstiles, and not to mention those at this point in history it's musical chairs out there. do we hear the music the issue is, no matter where you look on the globe, we have the same issues. we are all affected by covid everybody tried to use the printing press because they wanted to do the right thing at a time where we didn't know what else to do we had no real knowledge of how this disease would work or disappear. we didn't have think idea when the vaccine would show up.

but here we are. about ready to reopen. many of the global economies, various parts of the world aren't doing as well with vaccines canada is a bit slow ultimately, all rates are going up not only because of the good side but because of the debt side we can't sweep it under the rug because how long tocan we ignor in rising debt in all major economies? where is this money coming from? we are printing it now can we do that forever a ten-year note goes back to go october of 2019. why? because we know things are oversold but oversold is not a very good term to trade. what you want to look at is back to history key bottoms in october of '19, january of '20 above 150 where did we settle yesterday? low 150s it's going to play here for a while. i don't think it's over yet, and up 15 on the week. right now up 42 basis points on the month of february.

to the bunds, minus 23 boy, they were at minus 19 in march. this has been a big ride back. so there is europe now let's look at what's going on with japan. the thing japan would be on one of my charts, from august of 2019 all the way to now, minus 29 to 15.6 yes, it's only the highest yield since october but by a whisker we are about ready to go five years since we have seen those yields finally, australia wow, it's wild in australia. 192. this thing is surging even after they did qe trying to buy to push rates down. does that tell you something david, back to you >> told me something thank you, rick. rick santelli. coming up, the ceo of am cnet works joining us following the company's earnings reports the stock is having a very nice move following those results alk) pnc bank believes that if an app can help you track your pizza...

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shares of amc networks up 14% this morning after the company reported fourth quarter in 2020 results noting strong subscriber growth across its streaming services for the year. joining us now on a cnbc exclusive is the president and

ceo of amc josh, good morning to you. you know, they say the market is forward looking, and it must have to be your stock is up like 95% the last 12 months for a year you just reported full-year network revenues down 11.5%, you had a 22% decrease in content licensing revenues, and a 7.5% decrease in subscription revenues so what is the market looking towards that sends you stock up so much given it wasn't a great year when it comes down to it? >> sure. the market was affected by covid, we set out to be the worldwide leader in streaming. meaning that our services, if your viewers are not familiar with them, one is called shutter and another is called acorn, the british area, another called all black, sundance now on amc plus.

they are proven to be the service for fans to buy when they're buying other mainstream streaming services, netflix, et cetera, and others so we have a place in the market that's unique, that's sustainable, it's strong and for fans of these services it is their go-to place. >> you're giving them something they're not able to get on the broader, bigger services you say it's sustainable why do you believe that's the case >> we have proof points. we've been at this for some time an anecdote, the golden globe awards are this weekend. we have a horror movie that's up for a golden globe, a series called "creep show" from stephen king that's killing it we did a movie during covid called the nest that is among the fan base went sort of wild and we are number one in the british area we have a strong presence in the urban all-black area and just launched amc plus several months

ago and that's a combination of those things with content from amc like "the walking dead" universe three different series growing to five. so we're really owning targeted streaming, if i may. >> you think you've defined the narrative and you know it. this company is too small to compete, too small to dcompete with the big streamers you're in this no man's land you obviously say no and i guess the market seems to agree with you, josh. >> no, it is not no man's land it is the perfect land for our company, roughly a $3 billion company, david we had run rate revenue of approximately $125 million that's grown to $300 million we're continuing strength right now in the beginning of the year and, if i may, and this is

important, you'll understand it, we're doing it in harmony with our cable distributors >> right >> so we have launched these services on comcast, at&t's directv, dish's sling. our ecosystem is really working quite well, the base part of our business that's lynn yard channels is now in sort of great harmony with our streaming services that are growing at a very, very strong rate >> they are. that's a lot of veries, josh i go to you sometimes -- >> i left out the fourth >> you consume a lot of content in general amc "breaking bad," "mad men," "better call sol." what's not "walking dead" related and what do you recommend whether it's an amc product or not >> oh, sure. we have a new series called

kevin can -- i think it's the first series that goes from a multicamera sitcom, studio laugh track and follows the protagonist who is the star people will know from "schitt's creek. it goes single camera dramedy. it's what's happening in her response to her sitcom life and she's not so happy with it i think it's arresting, revolutionary in its format. we have a series coming up called "61st street" that is, i think, quite timely. it's from the people who were behind hbo's "the night of" and follows a young black man and what happens when he gets caught up in the legal system in chicago and i think it's really a timely piece >> all right i gave you a little chance i'm looking forward to viewing both

josh, thank you for taking some time >> thank you, david. >> that does it for us speaking of streaming, here's the big boys, co-ceo ted sarandos is coming up on "squawk alley. t-mobile is the leader in 5g. we also believe in putting people first by treating them right. so we're upping the benefits without upping the price. introducing magenta max. now with unlimited premium data that can't slow down based on how much smartphone data you use. plus get netflix on us, and taxes and fees included! you won't find this with the other guys. in fact, you'll pay more and get less. right now, pay zero costs to switch! and bring your phone -- we'll pay it off! only at t-mobile. hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools

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