big half time report today big. big half time report. >> are you on? >> big big. >> okay. >> joe, on the half time report. >> we got to go. >> tens of dozens of fans. >> all right good monday morning, welcome to "squawk on the street." i'm carl quintanilla, with jim cramer and david faber march coming in like a lion, the dow futures up nearly 400678 the vaccine optimism as j&j gets fda approval, begins shipping, bonds stabilize, the house passes stimulus, and a lot more retail earnings are heading our way our road map though begins with these easing rate fears, as stocks are poised for gains at the open plus, exxon continues to shake up the board of directors, activist investor jeff, and comcast ceo mike angelakis added to the board and what will it

need for the company, mean for the company climate initiatives? and j&j vaccines out for delivery 20 million by month's end and the u.s. continuing to set daily vaccination records, carl, and so nice to say some good news. >> you got that right, david at this point, jim, we got 46 million people in this country have had at least one dose, that's about 15% of the population, and j&j of course deliveries begin in the morning and hearing you talk to becky, not a question if this economy gets fresh legs but when. >> i think this is very exciting and if you noticed the cadence that alex talked about, you are really just, it's a major ramp, and i know that dr. gottlieb correctly pointed out obviously that there is vial issue, by the way honeywell has a fantastic vial and i think people should understand that and it's a great way, i'm sure, calling these people and saying listen, we got a new kind of vial but what i like about this, carl is, we're

now going to begin to say, it will be david, i don't know, memorial day, we are able to pull up, and through, when we thought, because of j&j's amazing capacity to make so many vials, and for it not to be able to be frozen and put in dry ice, but just boom, u.p.s. there, mckesson, u.p.s., mckesson. >> cvs or walgreen's. >> it's real. >> yeah. it certainly feels that way. it's all anecdotal of course from my perspective in terms of various friends who are getting the vaccine, but it has started to really pick up. it really has, jim at least in the new york area. certainly, actually amongst friends around the country so that's great news and maybe you do move ahead, so to speak, in terms of your time when things are going to fully reopen even with the concern, the continued concern about variants and by the way, those who are

going to continue to be very conservative in how they behave, jim, which does weigh down certain parts. >> and carl, obviously, we have a lot of people who have already had it and i don't know whether they're necessarily going to take the vaccine anyway, i mean the advice is from a lot of people that you should, but you combine the people who have had it and the people who have had it and we don't know about and the people who are getting this, i think that you can set up a mosaic that says the summer maybe, we still need masks and i'm thinking about the disney conference call, where they talk about you may need them, but i think we're going to start thinking that you know what, it's not so crazy that royal caribbean is trading where it is, it is not so nutty that norwegian is trading where it is and it is not insane that united airlines ordered 25 new planes from boeing, this morning. and you know what planes they ordered, david >> what plane, jim >> the ones that used to be, you know, people were worried about. >> really? they ordered the max >> the max, yes. >> this is huge.

>> jim your point is well taken. you look at the winners for the s&p in the month of february, rcl and ccl were numbers three and four, and as for goreski, he was on squawk earlier this morning on the "today" show too this morning, talking about the potential for it to help asymptomatic transmission, the potential for it to help against the variants, and just what a miracle it is that this got done in 12 months >> here we are, a year later on the cusp of literally having 100 million doses delivered in the united states by june, close to a bill around the world by the end of this year is a remarkable achievement, and while our doctors, our scientists, our engineers are incredibly proud and humbled i think it gives a lot of hope to our country and to the world >> jim, i was thinking, you know, goldman last fall, did have a bear case scenario that they drew out, in which j&j would have failed, because of what they thought at the time,

maybe safety concerns, you didn't buy it then. >> no. >> and your faith has been well rewarded >> i have dealt with a lot of the people who were involved with making it, and there were people who, i mean i didn't take those classes, they're very hard, but they walked me through it and their level of confidence was it made me so excited that i remember going out and saying that i think that science is going to prevail and then there was a "new york times" piece that made fun of me that said david, i always think about it because i was in favor of college, i was honored and i presented the science and they had good sport with me and i always love that, because you know i'm from philadelphia and i love these people who make fun of me, science prevailed, david. >> yes, it did >> by the way, the doctor at pfizer, that stock is so low but j&j stock is soaring and if you remember, people will buy the news >> i know you made that point at the end of "squawk" people will buy the news interesting. as opposed to what

>> as opposed to to buying before the news. >> and selling on the news, right? >> you and i both said this thing is going to be approved. as soon as this weekend maybe. and it did and the stock's up and i said that's going to be very odd, because in the old days, you bought the rumor and sold the news. >> right. >> and this one, i don't think there was a great deal of question about whether, it would have been a very big story if it had been turned down. >> will you take it or hold out for moderna? what are you doing >> i'm not holding out getting there. close. most likely moderna. >> will you be happy carl if you get the j&j. >> i will literally take whatever i can get i think they're all great options. >> my daughter's taking the astrazeneca today. >> can you mix and match >> can you mix and match. >> no. >> absolutely not. >> and then get a moderna and then j&j a few months later? >> you're confusing people >> i'm sorry. >> you can't mix it. >> do you still need two doses of that moderna and pfizer >> why not >> why not okay just checking. >> i have to go on a plane - >> how did you feel after the

second dose? >> it's a really interesting question, because i didn't realize how tired i was, i like to stand up, when i work and write for "mad money" and i did fall asleep standing up and caught myself. no, i did. carl, i didn't know. i didn't know how tired i was. >> i would have liked to have seen that. >> i would have liked to say i was hung over but i hadn't had anything to drink. >> i would like to see you falling asleep standing up >> my reaction says if you're having reaction of fatigue after the second dose, that means you have an operating immune system, so it's somewhat encouraging what was more interesting, i think, yesterday, jim, was on the sunday show, fauci now moving to another stage in which we start talking about high school kids, getting vaccinated, maybe as early as october, and kids under 12, maybe q1 of '22, but that's going to be another chapter, as we move through this crucible. >> yes, we're still stuck with this world where it's case by case, it's state by state, i don't know how we got to the point where it wasn't like polio

where everybody had to go to the high school. and take the sush sugar cube and get the knock nation, inoculation, and there are parts of the country that are way ahead and parts of the country with a lot of vials everywhere that are not in people's arms, and it is very difficult to try to figure out what the heck we got stuck with, because we mighting, we might get something pennsylvania doesn't, florida doesn't, i mean it is, you know, we did get handed a -- >> it did. but it's breaking out all over it's starting to become available in ways that a few weeks ago it didn't seem to be. >> you sound optimistic. >> i had a bunch of friends this weekend who got the vaccine. >> really? >> whether phone calls from the pharmacy, and saying hey, we've got extra ones, whether it's, a place that is administering it in a certain part of the city, a phone call or somebody who had

an underlying condition, those are all getting done younger people now. >> the smokers in jersey >> yeah, the state of connecticut, moving to 55 as of today. so it's happening. and it's great >> carl, but jim, we don't want to forget that it's still out there, and the cases are still higher than they were, not that many months ago, and so you do still continue to need to behave - >> meantime people feel that masks don't work, and obviously they did, once the new government came in, and said people should wear them, we did get a big drop, but these things are fake news, mainstream media news, carl, i find it tiresome because the actual numbers dropped when people had to wear masks. it dropped >> yup that's true. yup. mitigation efforts really did pay off. it wasn't all vaccine distribution jim, if all this is true, and we're looking at an economy that's poised to have fresh

legs, why over the weekend were so many of wall street notes saying that the ten-year yield was going to back off. >> i don't know. i mean i think that there's going to be a lot of activity but we had a figure this morning, that was, which talked about the balance sheet of america, and the trillions that people have, and that means there may not be loan demand david, the balance sheets of america had always been shoddy and now, i don't know whether you actually need a loan to do a lot, or you put down far less than you would so the demand, and the demand among big skyscrapers and building infrastructure -- >> that may not be there. >> for new office buildings. >> no. >> hard to see that. >> shopping centers. >> shopping centers. >> no. >> shopping malls. >> no. >> and those are the ones -- >> data centers. >> yes. >> and in strange places >> yes. >> and in strange places >> but david, what do you think

about the possibility, i have martin marietta on tonight that we are doing it for structure build and that would encourage and make things a little hotter. >> it would. right now, we still got to stay focused on whether we're going get the 1.9 trillion that seemed likely, but you know, there's a debate about the minimum wage, the parliamentarians saying it can't be part of that, reconciliation, but the far left of the democratic party, who knows, i don't know, jim, i'm not going to and if you get that, are you able to just move right on to infrastructure one would hope so. one would hope we would finally get to infrastructure. the president does seem to have -- every day, every week was something and we gnever got an infrastructure bill. >> carl, i think america wants an infrastructure bill, but for some reason somebody puts a monkey wrench in it and i want to talk to ward nye, key to the states, that there are states

that do road building and others don't do anything and wait for the federal government, and ward is concentrating on where the states are bullish and want new roads but the federal government has not contributed very much at all. >> we will talk later this morning, jim, buffet's letter that goes into some detail about the amount of money to fix the grid at least. >> very exciting very exciting. >> i guess i hear the music, i guess we'll take a break we'll talk about buffer fet's letter to shareholders the buy back, of course, the grid, the mia cul pa, david's got a great scoop, now officially announced by exxon, about the board and retail earnings on the way and a lot more don't go anywhere.

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it is breaking news, it's nution we brought you about an hour ago on "squawk box," been confirmed by the company, jeffrey ubben and mike angelakis, at exxonmobil and the company continued to refresh the board of directors and ubben, the man behind value act has moved on as well to start

something called inclusive capital partners, a focused esg fund that hopes to raise as much as perhaps $8 billion, and a decent amount of that may be allocated towards exxonmobil, of which he's not going to be sitting, is now sitting on the board, this is actually already happened mike angelakis, somebody we know well here, the former ceo of comcast, both bring certain expertise, ubben, has been sitting on the board by the way, jim, of aes, which you know, and has sort of helped the transition there, that has taken place, but was a coal-base to more renewables, and exxonmobil, this is going to be a long, long process but it is a transition that this company is going through and it's one that is supported by the most important person on that board, the first guy, darren woods, who is behind a lot of this, who had this long conversation with d.e. shaw that became invested in the stock a number of months ago, and was supportive of both of these guys being put on the board, and

woods, jim, seems to be all in, on this idea, not that you're going to become somehow carbon neutral in ten years but use the expertise of exxon engineering to help develop the technologies of carbon capture that is more price efficient and cost efficient while you also transition your business, the same way i guess they did when it was oil and kerosene and kerosene to gasoline. >> yes rockefeller. >> yes >> great book. >> when you look in the makeup of that board, there are a lot of people who are very thoughtful people, and we know them, william welden and cad, and ken frazier, and angela, all of these people, are candidates to talk about esg, directly to darren woods that is no longer david, when you sp switch and you bring up, you

have a border that may put more pressure on, a board that may put more pressure on exxon becoming a different company look at that board. >> and you need a partner. you need to do and boards are an interesting animal they really, are and having talked to so many people, even at companies where you would expect somebody would speak up, sometimes it doesn't happen, and they get into sort of a group think, and so you do need to people to sort of push an agenda, even as an ceo, you need to get your board in a certain place, but jim, we're going to be watching closely, they have an investor day coming up on wednesday, where i think they will lay out more, perhaps, in more specificity, and transparency, and it is typical for for exxon in terms of their guidance when it comes to this sort of transition, and even also things about what the price of oil is in which they actually make money, which has been a question in the past, and you know, but those looking for this to be an overnight transition of course not

by the way, the stock has performed very well, in part because of the underlying commodities performed well but it has outperformed chevron in the last few months in a significant way. >> and chevron third best in the dow or third best, i'm not sure exactly, the dow, the s&p, how much better but i would say this, david, the compliment to dividend changed everything. because that dividend is very big. and mr. woods has made it very clear that dividend is pretty much sackrosanct and they haven't been as bad as people think when it comes to methane you would think that they would be one of those companies that hadn't focused on methane and tried to bring it down and probably the lower third of the companies that produced methane and algae is good, and it is not a needle mover. >> no. >> and listen, there are still many of the, many of these technologies have not been commercialized, that will allow them to significantly reduce their carbon footprint and even

when do you talk to mike wirth or darren woods, and the idea of ev powered vehicles taking over the planet in ten or 125 5 year and if that really happens and 75% of a barrel of oil doesn't go toward that you have that part of the business cap ex has come down at exxonmobil. >> angelakis by the way tough. >> and somebody very well acquainted with the allocation of capital which is an important part of this story, too. let's not forget that it's not just about the carbon neutral future. it's also about reducing cap ex and op ex to the optimum level for this come. >> yes, darren woods on "squawk" this thursday, so i will be curious to see how he addresses all of those things. more in the energy space, gm rolling out some new iterations of the bolt for the summer with the hummer later this year. futures continue to look good. and more "squawk on the street" is back in a moment.

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between the stabilization and the bond market, the optimism over j&j's vaccine, the house passing stimulus, over the weekend, march is starting out on the right foot. dow futures up almost 400. get the opening bell in about six minutes.

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three 1and a half minutes before we get started with trading. >> one semiconductor that has held up during this period, and that is micron, and look at the

chart, they make flash and w-good pricing and d ram with good pricing they will be speaking on wednesday and i think there is a possibility they raise numbers at the conference. the reason this is really important, would he have to see if anyone follows along. because we saw some terrible action in the, in the south carolinas last week and a lot of peek are saying it is based on cloud and semiconductor, and we will have to see if they will be the leader once again because we got pancaked in this group, and the rotation was so everybody dent, that a lot of people were in despair, on thursday. >> yes you know, something else we have to keep an eye on is chip shortage, not related to micron specifically but in terms of autos and we had hp on, what was, it friday, i guess, and enrique talking about, they will be able to make their guidance based on what they see, but it's going to, supply is going to be limited in certain areas of the economy, isn't it, jim >> and a lot of this is because

number xpi produces so much of what goes into an auto, and i understand that nxpi is very, very constrained and remember, auto sales were very bad during the beginning of the pandemic, so a lot of the auto companies really cut back, and chinese didn't, the chinese did not cut back, and i think that's one of the reasons why they have first dibs, and david, i don't know if you noticed that the new way that biden wants to do this is approach china with our allies, but remember, our allies, 25% of it tends to be of what they sell is to china, so they have tended to be not as harsh as say peter navarro was who led the charge against china. >> carl, it's not limited to car, of course, hp, printers, computers, analog devices, also, even though they make their own, some, carl, some wafer components and things of that nature, need to go into what they do, so we are keeping a close eye on sort of this broader shortage of chips so to speak across the industries.

>> yup, whether it's lumber, jim, or semiconductors, there's a lot of announcements this week of wall street conference calls trying to address whether we're in a regular cycle or a super-cycle or just how scarcity is going to be digested by the markets as we work our way into the summer jim, before the bell, we haven't really gotten your report card on buffett's letter, the defensive buy back, not all buyback, but the lack of commentary either on spacs really or on gme, although munger took care of some of that last week. >> i mean i think that what he basically said was look, if you're a long term investor you can do well and i think that was a very, it really wasn't an offhanded attack or anything, it was like younger investors, you can do really well if you compound, obviously he is preferring people to put money in an index fund, the most jars was the position cash parts, and they paid too much for, his

words, $38 billion he came on "squawk box" that morning and said he is paying a very high multiple and unusual for him to do that and the largest acquisition, and twa a write-down so very self-efacing letter. >> yes he did say, not his only mistake but in his words that was a big one because he paid too much a look at the opening bell s&p almost uniformly green this morning, as we're back above, getting closer to 3900 jim, really quick, one thing you noticed as you look for trends this morning is the number of either secondaries, or note offerings, i counted rcl, norwegian, twitter and shake shack this morning. >> of these, obviously, rcl really smart to take advantage of the frantic buying, by younger people, the buying at 4:00 a.m. was just insane. i mean i don't know what they were thinking, people one thing i know that royal caribbean was thinking is this is an

opportunity to be able to fix our balance sheet, and norwegian, already had a good balance sheet, so i was a little surprised because i think they have some very good orders, but the one that really was, i think, terrific, was the twitter announcement because twitter is investing, it was one of the things that i had segal, speaking to the cfo, 1.25 billion convertible note and i am sure they will pay, and get incredible paces, and a convertible note, you pay what a mortgage costs people and again, i think that twitter is totally, a totally loved stock after being a disliked stock and the reason why is because they're spending and you hear over and over again through analysts who say what, twitter was dormant, and now they're spending, and this is very good news, for them, because they had fallen behind even pinterest. i shouldn't say pinterest. pretty good. but you know what i mean, they fall behind companies that you didn't really think of as

necessarily a must buy and twitter is becoming a must buy. >> you said that and obviously the stock has been a big buy, so far this year, up 40, 44%. >> best. >> wait to see year to date, as we just begin the month of march, but you're right 1.25 billion, we don't have the pricing on it, jim, but one would expect it is pretty aggressive, and the question has always been, right, will they make the right investments, and are they innovating quickly enough, are they changing the platform, and in ways that they should, you seem to think the answer is yes. >> and i was on spaces last week, and i was only given one tweet, they told me tweet, i tweeted at like 8:30, 9:00 p.m. show, it was kind of a beta and we had 3,000 people instantly and it wasn't, it was very good, i can't tell who these people are, one of them was called, i don't know, like acorn and another guy was called super joe, you have to know these people, you shouldn't invite them in to talk and i saw rich

greenfield, jason kalkanis a guy thought about in new york, squawk, alley, silicon alley. >> comes on all the time, on the show. >> yes. >> but what i liked about it is david, it is a rival to this fabled clubhouse that everybody likes. >> right right. which, yes, carl, which has grown dramatically, as well. have yet to participate. not sure i will. >> why >> why >> i like to get these times, time to season a little bit, get a sense for them. >> carl, you know that these things are fun they're fun. >> yeah, i've got to check out clubhouse myself as for twitter, i think it was last week, goldman went to 112, and today, bear goes to 81 and mkm was 95 and the street is re-rating at least on the price tarlts for twitter last week, the journal took a

look at carol tumay and her efforts to simplify u.p.s., and today, it's a big story on jane fraser at citi who officially takes over today. >> i thought the piece was good. and i had her on "mad money" and the stock is hated right now i don't know why 18 times earnings 2 1/2%, and she said christmas would be good and it would be good and when would a bank be run by a woman given the finances in so many houlds are run by, households are run by woman and i think this is good for citi, and that jane is coming in and wants to do well for the american consumer, and obviously this is a worldwide company, and the reason this is so significant, we're really starting to see some women get to higher level, we're not seeing minorities getting to higher level, which is disappointing but women are starting to get, i had two women

on friday, women in tech, women in banking so maybe the glass ceiling to some degree is being cracked? >> maybe maybe. not enough >> no, obviously not enough. >> no. and in banking, it's interesting, it's going to be very interesting to see, i mean she comes in at a crucial juncture, you heard, is it mike mayo talking earlier on "squawk box" saying, i mean he typically will say some things that others wo won't. i don't want to quote him. and he didn't mince words when it came to the disaster he seemed to feel that citi was very recently in terms of their systems failure. >> well, there were issues >> they're not getting their money back. >> no. >> you saw the most recent ruling from the judge, i think half a billion of it was not returned and doesn't need to be that was the payment that was incorrectly sent by citi. on behalf of rev lon that citi, citi's money, not rev

lon. >> the stock is still below tangible book and i would like to see your analysis whether she wants to continue to buy the way michael corb et did. i think jpmorgan is still by far the leader >> the banks overall, they've had a great move as a group over the course of the year and you point out jpmorgan, it is up 17% off its most recent highs but you're still talking about very close to the all time highs. >> you have the situation, where as rates go up, people love them and until rates go up so much that people hate them and this business activity has slowed down you mentioned lumber on the very jarring home depot call, lumber has doubled in a year. and copper at 4.17 and now copper, the two mines restarted, so there's a possibility, and the rate has come down, but you know, carl, at a certain point people will say wait a second, isn't housing going to cool? because rates are too high housing, you can get a 3 1/4

conforming right now which is still really, really low but i do think that people who love the banks, turn them very quickly, if they hear anything bad about bad loans. >> yeah, i mean speaking of the performance of the sector, jim, which is one of the best performing ones this morning, the story about goldman, losing a couple of senior bankers to walmart, as walmart tries to fire that up fin tech startup. it's not the last time we're going to talk about the wall street diaspora, moving into nontraditional ways of fin tech. >> look, is this one shocking? it is kind of. i mean david solomon obviously, wishes them well, and i've met, these guys are hitters, okay these guys are real hitters and they understand how to set up a fin tech bank. that he used marcus, i've used marcus, they get some good rates and you know, david, this is maybe walmart's second attempt to become a bit of a bank.

what do you think? >> i don't know what to think. certainly they have access to and they've got a lot of names now, they have a walmart.com as well and walking in the store >> i like this move. i liked it because so many people go to walmart each week, and why shouldn't they be, why should all of this go to pay pal, and square, now i don't know their relation with walmart but i'm saying in general, when you speak to younger people, cash app, pay pal and they want to have their buy now, pay later, these are all of the big things that younger people want and a big change from what our generation did. >> yes, as we watch the broader market advance about 1.5%, guy, not a big morning on m&a, even though the practitioners of it, whether lawyers or bankers seem to expect big things this year, judging from the conversations that i've had in recent weeks, but not a lot of headlines this

morning, did want to just stay on top of that core logic deal that we've been following for some time, increasing the bid, or added cash to a bid that was all stock and now 6 bucks a share in cash for costar, a $97 a share deal and costar has not moved down. there's a look they have also, termination date, six months but another six, another three, so that adds up to 15 months. but what do we want to tell you here well, it seems likely that this is going to be deemed as likely to lead to a superior proposal over the 80 bucks that they've accepted from stone point. from private equity. so we're watching shares of corelogic. and we will wait for the board to reach that determination, that seems likely they did address their concerns on anti-trust they did address their concerns about the termination fee. it doesn't seem to be much left

to be concerned about, if you are that corelogic board, also costar's stock price takes a deep dive, and as you see right there, it is not. >> no. and a cessation of endless ipo ps. >> and we haven't mentioned the word spac. >> there you go. >> 40 minutes in and i was busy with exxonmobil and i haven't kept a close eye on spac this morning and i have heard a couple of rumors >> oscar coming public this week that is a big deal. >> the health, traditional ipo. >> yes, old-fashioned way. >> yes. >> and i think it is a one that is going to be a disrupter and could be very good, and i think people who are looking for a good solid growth company should look at oscar today because it comes later this week. >> okay. no flying cars >> carl, go ahead. >> speaking of this week, we are going to get dollar tree,

costco, kroger, kohl's, are you looking for clues into retail how they will manage the new surge of in person demand? >> and kohl's will be interesting of course, because we had john in there, with the bonus 10% stock, we had positive chatter, where people are talking about the standard, and the board maybe needing a refresh but not everyone has liked what walmart said. i think doug mcmillon made a case of a reset a few years ago where the stock went from 90 to 80 but i'm addicted to these stocks because these are the ones that really got hurt last week >> yeah, we're going to watch that guy, every sector is green vix back down below 25 interesting way, the best day, at this point, for the markets, in exactly a month let's get to bob pisani. >> hey, bob. >> good morning, guys. what a great start to march. 10 to one advancing to declining stocks, due see that very often and of course, lower yield,

means less pressure on the stock market, and that means the reflation trade can reassert itself take a look at the sectors to see. broad rally so tech is leading, a very good sign but energy, banks, and industrials, materials, there's your reflation trade that sector was up dramatically, we saw some of these energy stocks up 20%, banks up 20%, in february, and industrials up 8, 9, 10%, materials up 5 to 10%. this is all in february this trade is now continuing, a lot of this is dependent on interest rate pressures that we're seeing travel and leisure stocks, flying again this morning. all of these names, of course, you heard about the secondary, some of these companies that are offering, but carnival was up big, in february, all of these big, big moves here, for these companies, and i looked at some travel in florida, in april, and things are booking up very, very fast, airlines booking up fast, the ones i looked at in the last week, at least going down to miami, in the month of april, if you look at the, what these cruise lines and what the travel stocks were doing in february,

huge boost to the upside, 30, 40%, right across the board, and you heard from the guys this morning, a lot of them talking about offering secondaries, at this point so we're entering march, with the reflation trades, still very much intact, but there is a little bit of worry about this rate hike and a lot of talk about the old tina trade, i haven't used that word in a long time, there is no alternatives to stocks, that was a favorite idea, for the last several years, and as interest rates have been this low, who wants to be in bonds at this point, but higher yields, recently, in the last few weeks have started to put pressure on high multiple stocks and i'm talking largely technology stock, many of which the big ones trade at 30, 40, 50 times forward mumts. we've seen a fairly tough time in the last few weeks as those rates have risen and people are talking about the tina trade is not so obvious anymore, maybe not dead but not as obvious anymore and the good news is the reflation trade is still intact. if you look at the performance of tech stock, in february,

which is a pretty good month for that reflation trade, you see flattish to down you know, apple is 12, 13, 14% off the historic highs and the big movers that we watch every day, at best, generally flattish at worst, down 4% for amazon, 8%, as you can see there for apple. so there's your debate about tina, there higher rates really puts pressure on high growth m multiple stocks. high multiple stocks and finally mr. buffett, loved reading his letter as everyone else did and love the concentration of the stock, truly awesome to see the portfolio that they have put together, and i mean look at these number, they own 18% of american express that's the largest single shareholder of american express. the largest shareholder of bank of america at 11% they're the largest shareholder of u.s. bancorp. and the largest holder of coca-cola. and 5.4%, they are the second

largest holder of apple after vanguard which owns significantly more of course, this is not a value portfolio. what would you call it i guess you would call it a pragmatist portfolio mr. buffett became much more of a pragmatist over the years and that investment in apple, not a value stock, it's certainly paid off for him so here's to pragmatic investing at this point. great read from mr. buffett as always carl, back to you. >> all right, bob, that's a good one, everybody should take a look at it bob pisani thank you. rick santelli as well, with data on the menu hey, rick. >> yes, a pmi, this manufacturing pmi from market, markit, it is expected to be around 58.5, which is the mid february read. we moved up one-tenth. 58.6 we toss out 58.5 this becomes the final read. and sequentially it is a bit of a reversal 59.2 is the final january read and of course, that was the high water mark, post-covid, so when

you have moved back a bit, but still solid number, well above the expansion/contraction line and well above the cycle low of 36.1 which was in april. let's move to the market, shall we and three-day charts everything we need to know on the fixed income side and the sovereign side, and look at a three day chart of 10s and the high water mark on the left, spiked up to 161 and that gives us a lot of information and there is going to be an area that we pay close attention to, on a breakout, and get above, it but now, we see the resistance, and the low to mid 150s, and look for that to continue, to work, it doesn't mean the move is over, let's see where the support comes in, below the market, and if you look at boons, boon's high water mark minus 20 basis points, and there's a lot of issues going on with negative rates and a great journal story how some of the bigger german banks are starting to move down the food chain who they're actually charging fees to, and fines, to hold their money, because negative rates, the central bank charges them a minus 50 basis points, and that

is starting to get pervasive again, negative rates and it really augers for potential stock, for buying in buyers on long maturity. and finally, year to date on the dollar index, this was a key week last week we held. we held the early january lows where we closed under 90, the first week of the year, and that was the lowest level since the spring of 2018 holding there is very significant. many believe the dollar index may have its stage behind them why? think about how the rest of world is are we the cleanest of the dirty shirts on the foreign exchange side yes. and the reserve currency carl, jim, david, back to you. >> see you later, rick santelli. and in the meantime, best gains in a month, every dow component is green, and led by boeing and energy's going to be your leading sector at the moment "squawk on the street" continues after a break.

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1.5% gain as we kick off a new month. that raises the question, is this about flows and new money for a new month or something different in the way the street sees the reopening >> i think there is a fabulous piece by david coston at goldman who says, look, you just can't trade off a rate there is still -- they are way too low. he says be careful of the companies that are fast growing that don't have any earnings i think that will reassert itself people would rather own boeing than a lot of these new cloud stocks i do question whether or noter going right back, david, to the value trade because what people want, and value is a big rubric, people want to play may/june they are watching j&j and saying, ok, we're traveling, let's go there are not that many travel stocks. >> no. are you better off selling and/or shorting some of the

stay-at-home plays >> short sng. >> no, right >> people don't do that anymore? >> david, shorting >> yeah. >> do you have, like, a private bunker somewhere >> i know. i guess i said the wrong thing maybe a portfolio. maybe they could short your index. does that -- no, that doesn't exist yet, does it >> i don't know, david, i'm thinking about where i can hide you. maybe hunter somewhere. >> i guess i said the wrong thing. >> adirondacks bury under mount marcy. >> no longer a buy i am not saying that i am questioning it. >> thank you, david. >> you are welcome. >> clearing up that misconception. >> short break here. all kidding aside, and more market coverage on the other side of this break don't go away. tracy, chetan, and gautam joined me on a mission to put people at the heart of commerce. we've created a marketplace and community that embraces individuality. [bell ringing]

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match is normally a winning month. a nice way to start the next 30 or so days s&p very positive, up 62 points. best gains in about a month since the first couple days of february more "squawk on the street" continues in a moment. don't go away. r policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our

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from across the country. they provide the potential for regular income...are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-376-4376. that's 1-800-376-4376 let's get to jim and s"stop trading." >> j&j and how quick they can ramp up. their partner, what they said to me, which is they said they had agreed upon and be able to make hundreds of millions of doses for j&j. so i think that the three, four

million that alex divogorsky is talking about doesn't include that j&j and emergent bio work together when i see hundreds of millions, that says to me it's almost over >> yeah, easy to store, one shot, 100 million at least in the u.s. by june, jim. really encouraging how about tonight? >> martin marietta. >> infrastructure. people keep talking about it the number one infrastructure company because they making a gets they are the company that makes roads. it's been a big business sale point. one more of these companies that is about identity and zero tolerance, people care tremendously who watch the show about cybersecurity and mark mclean is pretty good at it. >> is this show really over? >> it goes fast. >> can i stick around? >> we will see you tonight, of course you know you are always welcome to i don't know where you find the

time. >> let's get to aaron woods. >> yes >> right >> later in the week. >> would that be -- no, oh, he is somewhere else? >> we'll see we are booking on the air? >> yeah, we will see you later, jim. "mad money" 6:00 p.m. eastern time good monday morning, everybody, welcome to "squawk on the street." i'm carl quintanilla with david faber, morgan stanbrennan is ba. best day for stocks since the beginning of february as we get more vaccine optimism and yields stabilize. let's get to rick. >> construction funding for the month of january expected to be up 0.8 of 1% 1.7. a solid start to 2021. that's a january read. that is the best level going pack to october of last year when it was 2.5. now let's get it the money ball numbers. february read on ism manufacturing and the headline number is 60.8 that is so much better than we

were anticipating, and that actually equals the level of 2018 february. to find a higher level than 60.8, you will have to back to may of 2004. a nice number. the internals. prices paid, wow, 86.0 last look was 82.1 this number at 86.0 is the highest level since 91.4 all the way back to summer of 2008 if we look at new orders, 61.1 jumps up to 64.8, another solid number over expectations b close to 5 points and considering what week it is, on the employment front, 54.4 versus 52.6. and that, of course, is better than expected and that carries some momentum maybe into adp wednesday and the big jobs report on friday morgan, back to you.

>> rick santelli, we'll be watching thank you. let's turn to the markets with stocks rallying big to start this new month of march. joining us is david, global market strategist at jp morgan asset management and alicia at by mellon investment management. alicia, it seems like a lot of the narrative that's driving the market this morning after the pullback last week is the fact that you have yields coming off a little bit after that dramatic move we saw in the last couple of days, the j&j vaccine, news as well over the weekend how are investors to, i guess, think about this given the big bounce we are seeing equities this morning and what this means for not only that reflation trade and stronger economic rebound this year, but also for rates and the possibility of the fed maybe making some changes to policy later this year >> so, good morning, morgan. look, the story of the last few

weeks have been part of the larger picture that we are going to get a boom in the real economy and the sectors that are levered to recovery and reopening that suffered so much last year are going to be the earnings driver in 2021. there is going to be hiccups it's going to be hiccups in the rates market because we have an onslaught of debt coming, and so there is going to be very difficult for the fed to manage this as they try to normalize here but we're bullish on markets we think you buy in pullbacks and the row ttation trade if you look at energy, this is the outperforming sector that is underowned and that's the pain trade. we think there will be more sectors like this as well because people are overlevered to the tech trade. >> david, what do you think? where would you be positioning yourself or where are you encouraging investors to position themselves right now? >> so, we share a lot of those same views, and we do think that

the reflation trade is firmly intact one of the things that we are expecting to materialize over the course of this year is for the curve to steepen beyond where it already is, and that inherently is supportive of more cyclical and value oriented parts of the market. we think growth exposure is important for the long run, but to the point that was just made, the super growth megacap names have gotten ahead of themselves and we are definitely moving way from some of those allocations what i would say more broadly about the outlook for this year though is i have no problem with where the level of rates are today. i think the bigger issue was the pace at which we got there and if you think about volatility representing a distribution of outcomes, what we really saw last week was markets begin to internalize the idea that there is more stimulus coming we are making progress on vaccinations, we are going to get the economy reopened in the back half of this year when rates are below 1%. it doesn't reflect that type of

reality. again i think what we saw the past week or so was healthy. no problem with where rates are today. i think they can move higher and in general that should be supportive of the more cyclical parts of the market. >> work being done especially over the weekend by strategists looking at where rates fit in versus the s&p forward yield historically i wonder, after powell's address to congress last week wor two, how much faith does the market have in his view this will happen, yes, rates will go up, it's part of what a recovery brings, but it will be transitory in nature does he still have credibility on that front? >> i think that's really the key question one the things that makes the current environment so complicated in 2020 the fed said they were moving to an approach of average inflation targeting we have absolutely zero empirical evidence to what that likes. what you are seeing is the

market play chicken with the fed. the market is saying you say you are going to stay on hold you by see other things in terms of growth, potential for inflation, more stimulus. help me feel comfortable this isn't going to move you off of your current perch we have a couple of fed speeches this week before they go into the blackout period in advance the march meeting and i think you will hear from powell later this week in some of the members the next few days soothing words to calm things down after what was a very volatile week in interest rates i think they will do their best and use their most powerful tool, which is, arguably, forward guidance >> yeah, alicia, i know it's going to be all eyes from a markets standpoint on powell later this week and the jobs report on friday i am curious, i mean, is there anything about the scenario -- and i realize we were not in a pandemic or come outs of a pandemic during this point in time, but is there anything to be said about the playbook we saw in terms of the market

quote/unquote taper tantrum and the position in 2013 >> yeah, look, i mean, that's really the risk here to markets, which is the fact that the fed has to absorb all of the debt that's coming at the u.s. economy. we have close to 1.6 to 1.7 we think is going to get passed in the next few weeks, and that money, 1.2 trillion of it, will be coming to u.s. households by september. so there will be enormous savings, enormous boosts to household income, and, tlfrp, as we reopen enormous demands in the real economy you are going to get inflation rates. there is no question the job is on the fed here if they are going to stay the course, to dmun indicate in a way that the bond market believes the truth is, if we get a real growth rate of 7 to 10% for usgdp this year, rates are too low. that's what the market sees. so this going to be a balancing act between reassuring markets that they have it under control and the reality that we are just

simply printing all this debt. i think it's going to be difficult. we are positive on markets we are very bullish on the real economy and earnings but there will be hiccups. i think investors have to be aware and not get scared of it, not get scared out of the market >> yeah. i guess strap on your seatbelts. we got the dow at 609, 2% right now. thanks for joining us. >> thank you. j&j is getting the sign offon the single shot covid vaccine. we call up with ceo alex gorsky. >> good morning. those almost 4 million doses of the j&j vaccine getting shipped out this week in the united states of course, the third covid vaccine to enter the u.s. market after pfizer and moderna's and the first just to require one dose and you're done now, in trials, of course, it showed to be 72% effective in the united states in preventing disease, 85% effective worldwide

against severe disease, and in addition to being one shot it's also fridge stable for three months differentiating it from the other two vaccines we talked with j&j's ceo alex gorsky about the other comparisons people may make about the vaccines and here is what he said is the most important thing. >> there are a lot of different ways to do comparisons when you really look at what's the objective here, keeping people out of the hospital, keeping people from dying, we believe this is an incredibly important tool to be added to health care systems let alone for patients around the world. >> and, guys, that is the message from public health officials as well. now, in termsof supply, you know, 4 million this week, but it's going to look lumpy throughout the month no dose shipping next week, but 20 million by the end of march 100 million by the end of june because it's one shot, that means 100 million people vaccinated with this vaccine back to you. >> it's really starting to ramp up thank you for the latest on

that. frank holland is with us now. taking a look at the logistics behind the distribution process. frank, it certainly seems like the fact that this is one shot, it doesn't have to be at the you will ultra cold temperatures, it nate be a different scenario, dare i seasier scenario for shipping giants involved in the process. what do you think? >> i spoke to fedex a and u.p.s. they wouldn't say easy your but different. 4 mills of the johnson & johnson vaccine, that will be shipped this week. she also pensmentioned one shoto that means half as many shipments for this vaccine and it can be kept up to three months under normal refrigerator temperatures it's shipped in time sensitive materials and has to be delivered in 96 hours of the manufacturing process in maryland with emergent biosolutions with a drug substance frozen at 60 below

zero celsius and transported to indiana, grand river in michigan there it's thawed, diluted placed in vials and packaged that final vaccine is taken to a johnson & johnson warehouse for tore storage and from there mckesson, the government's distribution partner, takes the final product to its facilities to create kits where the vaccine is paired with syringes and pe this is where u.p.s. and fedex come in. they pick them up and take them to facilities for final transport all around the country. and that's how we are going to get it in our cities and towns fedex and u.p.s. ship about 10 million doses each week or at least they did last week the johnson & johnson vaccine increases volume by 40%. u.p.s. says whale twhile the vaccine is easier to store, the timing of the transport is still very critical. >> for us the main issue is time and transit. the thermal shipper which has the material in is it only v

validated for a certain number of hours we have to be careful the time in transit matches the time of the validation package. >> and vaccines that continue to be profitable. last quarter emergent saw revenues increase by 15% cat lent and mckesson raised guidance citing vaccines as the primary reason carl, back to you. >> getting very interesting here, frank. thank you. frank holland watching the distribution chain for j&j meantime, markets are rallying here dow is up 600 points best day for the s&p and dow in almost exactly three months going back to november "squawk on the street" is back in a moment.

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a. mortgage rates up six of the last eight weeks the 30 year fixed as you probably know flirting with 3% adding to jitters for the housing market joining us with some exclusive insights from their housing market data mortgage banker association ceo bob broke smith. welcome. great to have you, especially on a day like today thanks for having me on. >> i guess how would you characterize the trajectory of rates? i know you have forecasts as to where the fixed may wind up at the end of the year. >> yes although there has been a little uptick the last few weeks, we are at historically low levels where you can get a 30-year zero point mortgage for 0.75% if you can afford the payment on

a 15-year, you are at 2.5% so still historically low, just not quite the lowest ever. >> yeah. i mean, at this point given how many opportunities there were to re-fi, almost generationally, is it your sense that everybody who had a chance took the chance >> no. and the reason i say that is that even though refinance applications are down a little, they were up 50% last week versus the same week last year so i do think that there are some borrowers who try to time to perfectly and hit the absolute bottom. we have jumped off the bottom a little i think there are borrower out there who could benefit from a refinance at these low rates while we expect a drop in refinances this year, we think we will do 1.5 trillion in refinances, more loaded to the front half of the year >> interesting i saw some data last week

lack looking at the amount of u.s. inventory that has not been built yet is climbing to pretty amazing numbers. i think 20 plus percent has not started construction how much of the lack of inventory do you think is dragging on demand >> well, absolutely inventory is a critical part of the equation, and an existing homes we are down, i think down to 1.5 month supply, which is a really low level hillarily, and houses are just flying off the market so on the existing side inventories are very low, and on the new construction side the builders are building at a much higher rate than they have over the last few years, but they have been building at a rate that was too low for a long time, since the financial crisis so it will take a while to come out of that. there is progress as builders are responding to the demand and building more houses we are certainly in a tight supply environment still >> bob, i realize that rates are

still historically low now as we see them move higher i wonder what this means for the price situation. i mean, certainly here in the new york metro area prices are frothy, to say the least as you see the expense of carrying a mortgage creep up, what that's going do to that mix. >> they are interrelated we have been fortunate that the low cost of financing has actually improved affordability despite the rise in prices as mortgage rates go up a little, that will be a little bit less easy to maintain. but it has definitely been a help for borrowers that despite the higher prices caused by the supply constraints i just mentioned, the monthly payment has remained affordable. they are two interrelated items, as you mentioned. >> finally, bob, as the market continues to watch at least this, hopefully, last round, i guess, of stimulus work around the hill, where are we on

forbearance and the number of households that had to rely on forgiveness or assistance to stay in their homes? >> well, quickly it's not forgiveness. it's delaying the payment. and we went up as high as 4.75 million borrowers, 8% of the market had gone into forbearance. we are now down to 2.7 million so about 40% of the borrowers who went into forbearance have successfully exited. the administration has recently extended to up to 18 months, which will take us six months past now so presumably the economy will be in better shape then. to the degree that people have trouble getting out of forbearance, mba successfully advocated for $10 billion to be allocated to the states. if you have a borrower coming out of forbearance, there will be assistance in this bill, which which appreciate very much. >> we are hoping the economy

allows them to fet back on their feet with as little external help as possible bob, fascinating picture as the economy pivots here. appreciate it very much. >> thank you well, it is now time for our "etf spotlight." the aerospace and defense sectors, specifically the ita etf. joining this morning's rally positive territory for the year. a name to watch, ltf, just about $1 billion as l3 continues to streamline the portfolio another area that has been quite the topic of merger mania and k deal making, commercial space, specificer specifically rocket lab, the leader among companies building small rockets to launch satellites to orbit, announcing it will go public through a spac merger that values that company at more than $4 billion.

vector acquisition, the spac spiking 27% or so today. we are going to speak with ceo peter beck later this hour also. spire global another name in the sector to watch today. also amid spac news. "squawonhetrt"ilk t see wl be right back don't go anywhere. you packed a record 1.1 trillion transistors into this chip. i invested in invesco qqq. a fund that invests in the innovators of the nasdaq 100, like you. become an agent of innovation with invesco qqq. ♪♪ i knew about the tremors. but when i started seeing things, i didn't know what was happening. so i kept it in. he started believing things that weren't true.

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interesting morning for bitcoin today, up 9% citi has a new report, 108 pages long, says that bitcoin's at a tipping pientd we could be at the start of massive transformation of crypto in the mainstream a deep dive of his own in the crypto lately, says it's a test of being intellectually open to new and controversial ideas. one more signal as to how bitcoin is being absorbed by institutions more "squawk on the street" in a minute y is that? is it because people love filling out forms? maybe they like checking with their supervisor to see how much vacation time they have. or sending corporate their expense reports.

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welcome back i'm rahel solomon. here is your cnbc covid update

at this hour a year ago today the cdc said it was responding to what it called the first possible outbreak of covid in the u.s more than 50 patients and staff members in a washington state long-term care facility had symptoms associated with the disease. also on that day, the first reported covid-19 death in the country. a washington state man in his 50s with no connection to the facility and today the u.s. death toll, of course, is above 513,000, with an coverage 2,000 deaths a day over the past week. and as it deals with the covid pandemic, the cdc is also watching an ebola outbreak in africa it put restrictions on travelers coming from the democratic republic of congo and begin any, but the risk in the u.s. is extremely low. ghana's president the first recipient of a covid vaccine from the global covax cooperative. h goal to show it's safe

countering conspiracy theories, and the u.k. prince harry and kate did a video called -- what they called rumors and misinformation about the vaccines carl, back to you. we also heard from the queen weighing in, which we don't often hear her talk about issues like this, sort of encouraging people to get the vaccine. so you are seeing quite an effort around the world suggesting and enkurmging people to get the vaccine. >> yeah, that's true and there has been a lot of royal news the last 48 hours, that's for sure, too, rahel. thanks rahel solomon. buying going on. the nasdaq and dow up two plus percent. mike, let's talk about whether or not given that it is the first day of a month, is this about chop or is this about a pivot? >> well, first day of the month has been a powerful force, especially when the last of them, the prior month was weak you have the s&p up 2% today 1% is kind of recapturing lost in the air pocket and rebalancing trade at the end of

february on friday the rest of it, too, the big question around this market is, have we essentially priced in the plausible reopening scenario or is there more left to go? and i think if you kind of total up the news, maybe there is more to go. you have the ism number, this expected good news on j&j vaccine and the bond market has calmed down. last week, is this going to get messy, will yields start to fly or will people be proven to be more offsides. it's balance, across the board buying growth stocks have done little the last several months. they are kind of participating if not leading now i think all that stuff is in the mix. but, you know, we are still roughly in this range we have been in for several weeks, that 3,900 level of the s&p we spent a lot of time crisscrossing it. >> mike, you mentioned the bond market calming down, which leads me to wonder, is thstill in you mind a strong connection between yields and the s&p and the performance there so that if we see them gap up again as we did

last week we can expect to see a down day >> i think that the question is the gapping. the velocity and whether in fact it really starts to persist long beyond what just looks like a basic uptrend. that happened last week, especially, you know, in the shorter maturities, people seemed it was a bit of a selling pan pa panic some of those bond that gets everybody's attention and maybe reveins the equity markets. to me it's about which stocks work, which ones don't the bond market itself got oversold by every measure, just the losses that you sustained by owning a bond portfolio were extreme in a short period of time i think right now you can sort of say we are sort of correct for that, retracing just a little bit i think there is going to be a link i don't think it's about level everyone says this, it's still true, even though everyone says it, it's not the level of yields right now, it's how fast they get to above 2%. in this entire run in the markets since 2009, not much

upside progress in the net basis of equities with the ten-year above 2.5. once you are up there it means that the fed is probably going to get active. whether that's true, we don't know i think that's something to keep an eye on. >> yeah, 2.5, certainly something to watch, mike and i am curious, because, i mean, given the downdraft we saw in tech stocks in particular last week and especially some of those high-flying perhaps newer to the market names that have garnered a lot of retail interest as of late, where that leaves the retail investor moving forward. >> the retail investor, if you want to define it as is small traders buying options on the buzzy stocks and some of the reopening trades have been resilient. as many tames as you have seen these big shakeouts, it's not really kind of scared that group away for very long i don't know if -- does it mean that they are never going to get spooked out of the market, but

for now it seems like there is a lot of house money rolling through this market. they have had a lot of gains it's in the necessarily cutting into that. >> mike, thank you let's get over to phil lebeau along with the ceo of charge point, which is trading at the nyse this morning phil. >> thank you very much let's bring in the ceo of charge point. congratulations. first day trading. you rang the opening bell virtually this morning chpt is the ticker sim bottom. wel we will talk about what your prospects are down the road. give me your perspective in terms of what this merger means in terms of expanding the charge point network, which i think you are at 132 charging locations worldwide right now? >> 132,000, actually, a little more than that and then if you count the ports we roam with globally, you add another 155,000 to that that

drivers can access quite a large network already. prospect-wise, bringing this company public at a time when investors have embraced the transformation of mobility to electric drive, i think it's a perfect time to access capital on the public markets to help support the growth of the company. it's going to be a fast-growing company for a very long time. >> you want to get up to 2.5 million charging locations by 2025. am i correct there somewhere in that timeframe? >> i think, frankly, i'm pretty optimistic about a lot of the goings on now in terms of rivalry of cars in new makes and models from all of the different auto manufacturers globally. so i have very strong growth expectations with respect to that if you look at your business model, it scales directly proper portion al to cars sold into the geography, and i believe that a

lot of analysts will begin to look at the strength in consumer option and potentially even look at being more aggressive with respect to the estimates on auto penetration and our network will follow that directly. >> what extent, sir, do you depend on municipalities or local governments or landlords i can think of any number of different gating issues here in your ability to get these things where they need to be, or is that not an issue? >> those are all our -- i mean, you enumerated a small number of our customer segments. and those -- the sentiment that you see in the investment community for companies like ourselves in the ev space is echoed in the second-sectors that you mentioned so they are all investing quite heavily in that. and if you look at our business model where we sell to

businesses, our network subscriptions and our equipment, as they look and understand that this is the way that we're going to propel ourselves in the future, they are adoptingit at a furious rate. >> are most of these going to be charging stations where it's a rapid charge you know, i guess i'm trying to understand what the landscape is going to look like for those who own an electric vehicle and whether they are going to have to wait, fight with somebody over access to a particular station. how is that world going to actually operate >> that's a common question, and i think it's a factor, we have driven -- by driving gasoline cars, we have to go to the gas station for over 100 years but electricity is pervasively distributed. it's everywhere. so you will acquire most of your fuel, your electricity as fuel, at home, at work, around town while you are parked it's much more like a piece of

consumer electronics than a legacy gasoline car. the rapid charge is important for the times that you want to drive beyond your battery range or maybe you forgot to plug in and you need a rapid charge to go on an unplanned trip. but the real answer as to whether it's rapid or medium speed or slower is really a function of the natural parking duration where you park. at home, you don't need a rapid charger. at work you need something medium speed whether you are beyond your battery range, you need it as fast as possible. >> when you and i have talked the past you said we are close to an infection point with ev demand you said 5%. generally speaking, that's the feeling. you get to 5% of the market in terms of ev penetration, things will start to take off but when you talk with skeptics, when i talk with skeptics about the ev market, all of them say the same thing we are not going to be to 5%

until 2025 at the earliest, and even then, given the battery cell questions, people say we not be there until '26 or '27. what do you say to those skeptics >> what i say is, look, there have been skeptics along the 13-year history of charge point all along the way. for whatever reason, people like to assume that the first principles that are in place now are going to continue forever. if you look at any industry, any industry in technology, we have always surprised ourselves as humanity in how fast we develop things once they are embraced. so electric mobility has been embraced and while i actually think that in that 2025 or a couple of years beyond is about the point globally where you'll probably start to approach that 5% number, you make an incredibly large industry in that and if you look at the number of

new cars sold a year, right, about 15 million in the united states, and about a quarter billion in our install base of vehicles, even if 100% of the vehicles tomorrow were sold with a plug, it takes a while to convert the fleet. but as consumer confidence starts to really take hold, and actually consumer skepticism about the long-term value of driving a gasoline car, that is going to move in the adoption rate furiously so, we're -- we would be a very large company at charge point at 5% adoption or 3%. we would be a very large company. and then beyond that it really is chasing incredible scale. >> well, pasquel romano, congratulations again. first day as a publicly traded company ringing the opening bell virtually this morning at the nyse chpt is the ticker symbol. thank you very much. one thing to keep in mind with

the ev adoption rates and the infrastructure for the he can w electric vehicle, watch the biden administration if there is an infrastructure bill - >> let's get a quick check on the markets. >> go ahead. >> we'll work out those to tech includes in a moment highs of the day here, dow's up a 765. 65 75

a big week or retail earnings our traders share what to watch on tradingnation.cnbc.com. mi u" squawk on the street congp.

your doctor gives you a prescription you could use free 1-to-2 day delivery from cvs... but aren't you glad you can also just swing by to pick it up, and get your questions answered. that's healthier made easier. from cvs. welcome back to "squawk on the street." i'm dominic chu. stocks in a rally mode in morning.

investors are shaking off some of the rate fears spurred by last week's high on the u.s. treasury note yield. the highs, note yields a focus despite that you wipull back ins financials a relative performer with a variety of companies leading higher stocks that would normally be more sensitive retreating here among those top performing names, you have investment managers like invesco, also insurance companies like aig and cincinnati financial, big banks like citi group as well leading that move higher here. keep an eye on the financials. they have been an outperformer the last six months am we will see if trend continues given the focus on interest rates. back to you. let's get over to the cme now. rick santelli with a special guest involving interest rates rick. >> yes, and thank you. i'd like to welcome that special guest. jerome schneider thank you for joining me jerome is a manager director of pemco. more important for this discussion, head of short-term portfolio. jerome, welcome, and let's get

right into it. we are throwing a lot of big numbers around these days. so i'd like to give you something and viewers something to really wrap their arms around how big these numbers are. 1 billion seconds ago, for example, was june of 1989. 1 trillion seconds ago was 29,667 b.c roughly 30,000 b.c we throw these numbers around like we yunderstand what they mean frm you want to weigh in on the potential we are going to be dumping another 1.9 trillion in debt into the system understanding people need help, but to think that that's an awful lot of money and much of it is going to be spent years down the road. your thoughts? >> well, i think it's important to recognize the fact that the federal reserve helped to create this momentum. we have seen a tremendous amount of the balance sheet increase from 2.3 trillion during the cycle of growth from to 09 to

2014 and added a similar amount plus $1 trillion over the past ten months the point is that the trillions keep coming. the difference is, as you highlighted, they are moving from the monetary side of the balance sheet to the fiscal stimulus something we have highlighted here at pemco for quite some time whether it's 1.7 to 1.9 trillion, it's helping to support the economy. as jerome powell stated, they are looking at that to support growth, unemployment rates and ul their inflationary goals over the medium term. so all in all it's going to help support -- >> wait a minute, though jerome, jerome, jerome, you are going way out there. you are talking as though most of this money is earmarked for some of the issues you are talking about. much of the money is earmarked for issues that have very little to do with the recent emergency resulting are the pandemic let's move on because i really want to talk to you about something i heard at the beginning of february, and that

is, is that the treasury has amassed huge amounts of money in their general account at the fed and schshouldn't be surprising, to combat the paparazzi and all the different policy incentives, over $1.5 trillion janet yellen wants to ship it back to the fed. is this going to be an issue and what kind of effect will it have on money markets >> near term this will put a little bit of pressure on money market rates undoubtedly, central banks have done their best the past few years to make it really unattractive for savers to put money in banks in this regard. what this does is shifting the treasury's general account puts more pressure on rates we might see t bill rates trade negative don't confuse with monetary policy in terms of benchmark rates. market levels potentially turn negative if you are a savor, sitting on the sideline, worried about the volatility in rates markets out

of the curve, gently move into a broader subset of categories in the short end that avoid zero rates, avoid the potential for negative rates and allow you to return that is1 to 2% return wi a lower volatility threshold the key is volatility management at this point in time. the fed will be on hold for a period of time jerome powell has continually said we have not yet reached that unemployment and inflation metric and it's going to be patient in this regard he will do that this week in terms of reiterating that as any painter knows, you are going to effectively see we are moving from an abstract form of art to a concrete realistic form of art using figurative language that language allows the fed to be more concrete in that patience in that part of the curve. which means -- >> jerome, what you say sounds great. we are almost out of time. i only have 40 seconds you have to say this in 40 seconds or less. so you have complete confidence that all of this money that's

coming back and coming home to roost isn't going to be giving huge amounts of sherman flakes in the near term, but subside. is it a risk in the near term, yes or no and we have to move on we are out of time >> inflation is a medium term issue. near term technicals, but longer term inflation could be something dealing with as growth continues to percolate higher. >> excellent jerome, always a pleasure to talk to you. of course, we are going to be monitoring how this money flows back into the system carl quintanilla, back to you. >> all right rick, thank you very much. speaking of money flowing back in, the dow this morning up better than 2% some of the biggest gainers are going to be big industrials, boeing and dow, disney, intel and apple not far behind apple, by the way, with all of its stores open for the first time sinceheanmiben. t pdec ga

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welcome back to "squawk on the street." a merger with vector acquisition

corp, up on this deal news this morning. this implies a pro forma enterprise value joining us is rocket lab ceo and founder peter beck peter, congratulations thanks for being with us today >> thank you very much good morning >> so why go public now and why go public via spac >> we're super excited to bring to the market a really high quality space asset. rocket lab has a long history of execution with over 97 satellites delivered in even some of our own spacecraft in orbit. we are on a slow but methodical path to an ipo we choke a spac path to accelerate our vision and goals here we have obviously a very stable business with strong revenues but we're looking to take it to the next level having access to public capital

enables us to embark on the program which is a large launch vehicle and also gives us public currency to do some of the m&a that we really want to do. we've had a successful acquisition already and are looking forward to doing that in much greater vigor in a space company. >> all right i want to dig into both of those points more. the first being that medium lift rocket you will develop now, knew neutron which will deliver to orbit in terms of satellites but also could have the possibility for human space flight what is that going to look like for rocket lab >> yeah, look, one of the advantages of launching so many customers is a very strong market understanding of where the market is going. and 80% of all the satellites will be launched here in the next couple of decades are

constellations and there's a market need for a vehicle to address that and an alternative in the marketplace to address that if you look historically the majority sits around that 4.5 to 8 tons throughout all space flight and, of course, if you're going to build a vehicle of this scale, then you would be remiss in ensuring it was not a vehicle capable of human space flight. >> so what does human space flight look like are you talking about getting into the commercial crew program, delivering astronauts to the space station, tourism, something else >> yeah, look, the focus right now is to deliver on the media constellations this is the largest opportunity within the space industry. good at picking the market niches and we think this is one worth going after. if you're going to go to all the trouble of building a very large vehicle like this, make sure it can carry humans as well

>> peter, morgan mentioned your value. that represents 4.5 times your estimated 2025 revenues of $749 million. what gives you the confidence you can get to that number what assumptions are behind it >> i think rocket lab has historic revenues. if you look at a number of the spacs out there that don't necessarily have historic revenues we have built up from a bottoms up and a top down basis. these are numbers we have certainly in the early years high confidence in because these are customers we know and customers that we have delivered. so ultimately the market will judge us on our execution. if you look at our track record, it's pretty strong on that front. >> peter, you mentioned the possibility of m&a certainly looking at the

electron rocket 16 successful missions you've delivered 97 satellites to orbit already you're part of this elite, very small class of launch service providers that have actually reached orbit so far that being said when it comes to small satellite launch there are more than 100 companies looking to compete in this market. what do you expect that landscape to look like, and when you talk about m&a is that where you look for the potential for deals or something else? >> what i think it will look like in the space industry are a few small players delivering spacecraft and also a few at the larger end and i think just pure play launch companies will struggle if you look at rocket lab, we started in 2019. by the end of last year one mission going to the moon for nasa this year we have two mars missions, a venus mission and an orbit demonstration for nasa as well

we've built out both stalls here not just launch but also spacecraft and what we're ultimately trying to do is build a platform. >> all right, great. peter, congratulations on the news today we do hope you'll join us again when the company does officially go public next quarter in the meantime, vector acquisition corp, 20% on this news today peter beck, founder of rocket lab. >> thank you so much s&p gainers take a look at how we're faring here. ckn miteba ia nu go aflac!!! what the heck, troy - that's not your kid! the aflac duck is just covering for sophie.

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