we don't know what's coming. that's kind of like a dui, no kidding. >> it is a duh, no kidding >> it's a pandemic winner, right so these warehouse stores have been 85% over the last year, maybe a bit of profit taking at this point. >> dom, good to see you. >> likewise. joe, andrew, i guess that does it for us today we will see everybody back here tomorrow right now, it's time for "squawk on the street. see ya good thursday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber, coming off two straight days where we closed near the lows we'll see if today is any different. ten year as jim said still 1.5, and jobless claims 745 k, powell speaks at noon, earnings in snowflake and more and the road map begins with the tech sell-off futures mixed and inflation fears continue to rattle some investors. plus, tesla bull ron baron

selling shares despite saying the sock will increase to 2,000 over the next ten years. and with oil price, pre-pandemic levels, we are watching opec this morning will it supply the world with more crude as prices continue to rise carl >> all right, guys, a lot to get to this morning. jim, hard not to notice a tweet that you mentioned this morning, regarding a call for your membership program, and that is that as the reopening happens, it is the end of a certain chapter, i guess, in your view, for some growth name, not a somber call, jim, but a serious one. >> yes look, i think that it's entirely possible, when you listen to alex gorsky, and bio, making a huge number of vaccines, it is a situation, where we can say, june, that there will be enough people, you're talking about hundreds of millions of vaccines, so you're really do have to switch directions, it's painful to switch directions and go buy cummins engines and

emerson and ingersoll rand, and parker han fin, that people have long forgot and up against the wall are stocks like tesla, the high multiple stocks that did really well during the pandemic, don't really have underpinnings, even though they're doing well, you much rather buy boeing >> yeah. it's multiple. it's a multd multiple tradeoff i guess. and the question becomes is bowing a value, and it trades at a multiple that you could argue might be given the reopening and many of their problem, perhaps they hope are behind them. i don't know what the appropriate multiple is. or for a snowflake obviously, these are growth companies. but we have seen growth sell off dramatically, because you can just make an argument one way or the other, this co-star that i've been watching, for example, trying to buy corelogic, right

50 times should it trade at a times maybe is should. maybenot as we take a look. frank slootman will be joining the show. >> oh, my god you have slootman? it's a monster quarter he is the best and what you have to look at is the deferred revenue that's how you measure that and the deserved revenue was just extraordinary the best i've seen but david, we don't know how to value, when you have 117% revenue growth, and 205% revenue performance obligation david, will you be interviewing? >> i don't believe i will be >> why not >> he's on the "squawk alley" program. >> i talked to a number of ceos last night who could not believe this number. the stock has come down a lot. let's watch this stock because slootman delivered far better. people are saying his guidance wasn't that great. all you have to do is look at deferred to get his guidance this man, he is extraordinary this man, he is extraordinary.

and that was the best of the best of the high-tech growth stocks that's what you got to watch, carl it's going to be a great interview. >> i know you're a fan deutsche bank does upgrade to buy. they go to 300 credit suisse from 275 to 310. some of the reaction has been positive jim, you talk about it being painful, moving from this, in this chapter of growth to value, that's the exact same word that ron baron to describe some of his funds unloading about 1.8 million shares of tesla, as you said, it's about a quarter of the stake, still says his long-term target of ten years, somewhere in the $2,000 range but he talked about why he sold. on "squawk." here's what he said. >> in the past six months, we've sold about 1.7 million, of the 8 million shares that we held, and we sold them between 450 and $900 a share, average 660, 670 and so still own 75% of our stock. i'm hopeful we hold that for a very long, actually more than

75%, i'm hopeful that we can hold that for a number of years, i think that in ten years, our target is $2,000 a share, and i think that could be light by maybe $500 or a $1,000 a share so we're looking for a lot more. >> all right, jim, so you commented on that on twitter as well in terms of how people are going to read his decision and why to sell? because he said it was up 20 x >> look, he's a portfolio manager. he's not someone who comes in and says i have to have 100% tesla, because this is my favorite stock he's been right all along, okay? because he's been right, he did not want to be the tesla fund. david, you talked to a lot of managers who own stocks, that just kept going up and up and up and if they don't scale back, then all they are is that one stock and that is irresponsible. he loves tesla there's no doubt >> no doubt. no doubt >> you mentioned portfolio management remember, we talked a lot about that around melvin

because it's not being a great analyst, it's not just about picking the right stocks, although that is an important part of it but managing and mitigating risk, and when one name gets to be more than 50% of a certain fund, that's just, you're not managing your portfolio properly, right, jim and so listen, we can't argue with ron baron, i don't know, did you hear him, he said $2,000 target but it could be a thousand more than that, so he's even pointing to $3,000 a share for tesla which would make it far and away the most, the highest value company in the world, if it were to get there, and apple were not have to moved up in that time, or any of the others, but you can't gameblame and five years ago he kind of laughed a little bit at his targets but they were all met. >> 900, down to $650 i think there will be peoplewh say he's been selling, he's done selling, and you know, david, that cathie wood bought some yesterday. >> yes

>> so the question is, will she save tesla >> she bought a lot of palantir, too. >> she goosed palantir, like 2.5. now we're talking about the finest manager of our time what >> what time is that, 4:00 yesterday? >> 9:06. that's the time. >> she bought 23,000 shares of tesla. so will she stop the decline in tesla, david >> that's what i want to know. >> 23,000 shares i don't know if that will do it. >> two million shares of palantir. >> 2.6 million you're missing the other buy >> thank you i see. that that's right. another 670,000. thank you, jim >> she must have watched when i said she likes zoom, she's buying zoom. not true she doesn't. but i think it will be tesla and cathie wood and if they hold the line, and even my twitter feed, saying this is it. >> hold the line hold the line on the spacs, jim? are you watching those watching the twitter feed on the

cciv bulls hold the line. >> there is a devastating note about one of my absolute favorites that you brought to me, david, i'm talking about quantumscape, i mean the analyst just loves it, baird, it's called electric crude, he talks about faster charging, safer, longer-lasting, solid state, but david, he called it a neutral. >> a neutral after all that. >> he's a turncoat >> qs. >> he's a turncoat >> yesterday, a lot of these growth names as jim is alluding to, suffered significant losses. obviously as you might expect, many of the spac ames, there's a look at quantumscape, and some of the others, a number of them coming public through spacs, and i mentioned cciv, it's interesting, jim, that, you wonder, there were a number of people focused ton when they announced, finally got to announce the lucid deal, which they did and you saw the share count 1.6 billion shares

outstanding but there were still many people who said okay that may be the time but they were afraid to short it because who knows, it went from 10 to 60 but it has gone promptly from 60 to 23. >> it's astounding there are people who are, this is it, i mean the opposite of ron baron, there are people who own only this, and david, they are, wanting us to say great things, and look, i'll say a great thing about it - >> the car is beautiful. it's beautiful. >> but carl, the hype of some of these wasn't the companies i want to make that point. it wasn't the companies, it was individuals who said you know what, this thing's got to go up because it's great looking and same thing with fisker by the way, when i had fisker on, i was a doubter, and bill mcdermott from service now joined the board and the scar good, he has foxcon building cars and magna building cars, there's a lot to like here.

>> at this market cap would you take a shot if they would hit their 2.588 billion in ebitda for 2026 you discount that back now on a multiple, given a reasonable multiple on the market cap, 1.6 billion times 24 let's call it, so still a pretty sizable market value overall. when they despac, by the way remember you're not going to get that by looking at cciv's share count. but i don't know, maybe will they hit those numbers >> oh, yeah you buy it absolutely. >> whether or not they hit those numbers? 2.8? >> with spac, you could say it is 3.7 billion. >> you could say anything. any projection. >> david, you know what matters today, and carl, i will put it to you direct, they decided that steven tanger the executive chairman of tanger, it will be his day, tanger factory, 32% short, i see it happening, it's today's rocket, and i have always liked him, 90% occupancy

and it's crazy there is a 32% short and dealing with steve tanger who i've known for 15 years, in bad times people need a bargain and good times people want a bargain. >> it's like winning the lottery. >> today, it is his lucky day and they have a good new ceo steve jaloff, i've never understood why this thing is so shorted given the fact that tanger has been through hell and back and he's done a great job, they have some old, new, tory bur of is in there now, when you're talking about offprice, i happen to like tanger but this is the one they've chosen. it can be the next rocket? i don't know >> it's like the opposite of the spanking machine, jim, it's interesting to see which names are going to get their turn. in terms of broad reopening plays, i'm sure we will talk about a new street high target on ge, from morgan stanley, 13 to 17. and morgan stanley on our parent comcast, from 65 to 75 and the reopening enthusiasm is

there, but then jim, you got disney, which is closing 20% of their stores, in north america, by the end of the year so it's not uniform. >> direct to consumer, disney has cut back a lot during this period which means when things finally happen, it's going to be wide open, and you're going to see tremendous leverage in the model, but david, when i think of disney, i think of this amazon deal for thursday night football. >> possible deal. >> possible. >> yes we're not there yet. >> you're right. >> but it's a big number we're talking about that possibility. and to reiterate, fox, nbc, cbs, they're all, and abc, potentially, they're all going to be there, but you'll add amazon as well, potentially getting some individual games, too, exclusively it will cost them a lot of money. >> cord cutting but these numbers that the nfl is getting are as if cord doubling -- >> not cutting >> as the universe shrinks, it's the one thing you can still grab a hold of. and in a way, carl, it becomes

more valuable, even though the ecosystem is in seminal decline. >> amazing >> yes, david, i mean today, by the way, we should mentioned paramount plus goes live. >> yes. >> we will watch it see how that's received. and jason k. ilar of warner media presenting at morgan stanley. it seems the entire world is presenting at morgan stanley this week and they believe in the future most households will have six to seven streams services and at&t believes they will have one of them. >> hbo max which has started to pick up in terms of momentum but we're keeping a close eye overall, just what is going on at warner, and you know, how much time will they sit with that asset, and continue to focus on growth, or what will happen, you know, conceivably over the next year or two, we could see a lot of tumult in media, but that's, i don't know, six or seven, i think i'm already there, jim, in terms of streaming services >> i am, too and it's already enough.

i mean i don't, you know, after a while, they've got, there's got to be a better search function >> i just want to know where my click, you know, david, we didn't talk about the tv, the nfl package. >> no. >> the sunday -- >> the most valuable thing on earth. >> yes. >> if you're a fantasy football fan. >> you're talking about dtv. >> yes. >> that was part of, remember, that was part of the deal, in which they're selling 30%, but they actually took some of the hit on that, at&t. >> wow >> yeah. >> carl? >> all right, guys, a lot to get to, there's more streaming news, we'll dive into that call on ge. we've got square taking a majority stake in title. rsk resting story from jac doey today futures mixed. we're back in a minute ♪♪ we've all felt this gap. the distance between what is, and what could be. while he's tapping into his passion,

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pickup, more demand, because for instance, i had american electric power on last night, the largest transmission company and they're seeing a lyft in industrial, business is much stronger than expected and when you have business that is must longer than kpft are expected and people will hit the road great notes from phil lebeau, and buying cars, vehicle loans, jumped $2,000. 35,000, the enthusiasm for the red hot auto market, that's goal, that's gas scene >> and it's reflected in the price of the commodity look at that >> i did not expect it to be up this much. but who expected that the geniuses would fix the numbers, 100 million, 100 million, i've seen some numbers, can you imagine what it's like in these places >> yeah, it's a great thing. and we are getting closer and closer guys, you of course may have seen darren woods, ceo of exxon, join "squawk box" this morning, a day after their investor meeting, of course we spoke a lot about exxonmobil earlier in the week when they added those two important board members,

mike angelakis, and jeff ubben and one of the things at the investor day meeting, decarbonization, they're spending a lot of time on that, and of course woods was asked as you might expect about it as well and had similar things to say about mike wirth, the ceo of chevron, take a listen. >> one of the big challenges today, deploying that technology is the costs associated with that deployment. it becomes uneconomic as you get more and more dilute streams of co2. so we've been doing work to make that, those economics work and to make the cost come down >> a lot of engineers there at exxon, on that, at least they indicate, of course, it shows how important it's going to become potentially to its strategy i wanted to also stay in that same lane. but change it up a bit i had an opportunity to steke to mike henry, the ceo of the resource giant bhp will you know well of course, based in australia. and it's funny, you might think in a similar way, they were in a

similar situation. obviously not an oil company, but digging a lot of stuff out of the ground that sometimes gets, you know, burned, to cause carbon, but in his case, henry indicates that as the world decarbonizes, there are real oppor opportunities for a company like bhp. >> a world that is rapidly decarbonizing is more valuable for bhp and the reason for that in order to effect the energy transition, there will be a lot more of the commodities that bhp produces required, things like copper, nickel, even steel, so there is a certain steel intensity to building up this infrastructure, and so there will be increased demand for many of the commodities that bhp produces. >> by the way, take a listen to my entire interview, it's on the web, our evolve series, we keep adding to it, we talk a lot about esg in each of these interviews but you wouldn't

necessarily think that they were a potential beneficiary, would you, jim >> no. >> they may be given the commodities that go into these things. >> i am surprised. that's a great gig bhp, i've always admired that company. steve gal bragt owned that company about 30 years ago and they are a very good company and to hear that pivot, the way that new cars are being built, he's right, i had a rare earth company on the other day, and you need all sorts of minerals that we don't typically use, at the same time, david, i have to ask you pointblank, darren, when you speak to darren woods, is he really making a commitment to change, because they have not been that great at carbon capture, or is he making a commitment to put people on the board who can push him because i'm not sure where exxon really is after listening to him. >> yeah, i think that's a fair question and i think we'll only know over time now, i think ubben is a serious guy on this.

and i think he will push and/or be a partner to mr. woods, as he potentially tries to push the company and the board. but you're right, words only go so far. >> right. >> and we will, carl, watch it very closely not just because it's so important to the future of exxonmobil conceivably but because it has much broader implications in terms of, well, in terms of so many other societal issues. >> yeah, b of a goes to a street high 84 today, guys, they say one message from the investor day was we're an oil and gas company, we're good at it and perhaps a less than subliminal message, b of a's words. and a second battery plant in this country, and when we come right back. - welcome to three brothers bakery. - we have cinnamon, apricot, and raspberry. right back - we have a location that has experienced four floods, a fire, a hurricane,

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keep your eye on the nasdaq 100 laggards this morning, marvel technologies in there, as we keep our eye on the semiconductor space. piper does go from 50 to 60 this morning, but shares down about 5% premarket we'll talk about that and a lot more with the ceo later this morning, in our 11:00 a.m. hour of "squawk alley." back in a moment

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two more minutes before we get started with trading let's squeeze in a "mad dash," marvell. >> yes, david, multi-layer complex substrates ic packaging capacity. bath constraints certain technology nodes yes, david, marvell is down because of the chip shortage that we keep talking about these basic markets of chips that they don't have remember, they do some autos but otherwise an exceptional number. do they asterisk it?

what do they do? we sold some stock, and when people hear shortage and they hear semiconductor, they sell, they don't think about demand, and it didn't help that whenyo speak to mr. murphy today, and i think matt is fantastic, he's now talking about that you're going be with this chip shortage for a long time. and that is devastating for people when they try to figure out when this whole shortage is going to end i just, it's very hard to believe that you have a 5g company that has been the best, and it's just being felled by the fact that the companies that make the stuff didn't predict that things were going to be great. marvell is going to buy a lot more inventory and they are getting away fromjust in time and going to just in case, but the damage might have been done, people are going to sell it and i think it is a terrific company but you have to let it come in, because yes, the chip shortage is alive and unfortunately all too well david? >> it's true, jim.

even yesterday, the question was whether or not this shortage would end at the end of the second half, and sounded like he wasn't sure so it is sounding less like a first half story as the opening bell and the s&p 500 at the bottom of the screen, at the big board today, it's van eck, ticker buzz, and senior care provider, innovating, and did you say this morning, jim, that etf fascinates you. >> well, look, it's done by an algorithm, it does not have gamestop in it by the way but it's all the chatter stocks and i have this im average the people, we have not mentioned these people of late, the wall street bets people saying you know what, this is our group, and we're going to start buying buzz, and david portnoy had a very interesting video, it's rated x, or whatever people rate people, you're rated so you can't really watch a lot of it, so this is the first etf that's captured my fancy in a long time, specifically because i

want to watch what people really are talking about, and it's done in a very nonemotional way so carl, i think it's a winning etf, in part because, yes, the hardest working man in stock, and sports business, does have a lip singh by the way for james brown today, is behind it. and portnoy will generate a lot of excitement, the etf is very exciting tanger >> will you look at that >> there it is >> let's see if steve's come back to me one of the greatest guests look, what the hell is that stock being shorted for? you can't bet against steve tanger he's one of the best in the world. but they're doing it >> i understand why you might short it as sort of a basket of shorts in general. >> but it's shorted six months ago when he was really - >> maybe they were >> well, no, last six months ago, they weren't doing well. >> i'm saying maybe it is where you start to cover now but you're saying this thing is also

now starting to get -- >> they picked it. >> they did? >> they picked it because of the short position. >> they, being the reddit group? >> i don't think this can do rocket >> no. >> because rocket has unbelievable quarter, didn't understand at all why that stock was down tanger is just not as bad as we thought. but they picked it because of the short position and david, you know, i don't like this kind of investing if only just because if it's just, you know, 30, 40% short, that's a lot. >> and gamestop is hanging in there at $124 a share. >> that's the realtime list. look at that list. we got buzz and i think we have to follow buzz, because it's about what, it's the stocks we all talk about, and i don't know, it's kind of interesting to see an algo pick the stocks and yet the algo doesn't have gamestop because the algo is not up to date they need gamestop we still have not heard from gamestop which i think is rather amazing. >> they have nothing to say. >> it's getting weird.

>> yes. >> it's getting weird, jim the silence is deafening >> you know, for a second day in a row though, i was going to say, boeing leads the dow, not quite taking out yesterday's high, but we did get to the highest levels, jim, since december 14th of last year and that leads right to the ge call, which i'm sure you guys are going to talk about. as they go to 17, investor day, on the 10, a lot of what is about the strength of aviation, david, feeding free cash flow. >> yes, 90 cents a share of free cash flow in 2023, says morgan stanley. listen, this stock's up 28% already this year. comfortably above the $100 billion market shawl is now, market value is g ex back to respectability larry culp obviously, people getting on board with the turn-around. aviation as you said, carl, morgan stanley says appears to have significant recovery potential, and looks

conservative in guidance jim, although when i think culp, i think of danaher sometimes i can't help it. you take a look at value creation, i mean ge, listen, ge seems to be on its way, rebounding, at a very strong last quarter unexpectedly so, versus what analysts were estimating and take a look at where culp came from, that thing has been unbelievable and by the way they were probably the beneficiary of the purchase that they made from culp's ge. >> life sciences >> yes >> thank you >> it is a part of it, immelt was pointing that out but they got a great price for it, and guys, can we put up danaher, dhr, and every time we talk about ge, i wanted to put that up there. >> and a big competitor of fisher >> and culp had to sell it they needed the capital. i've been working with culp on this wind division and wind is now very economic which is shocking and a very big

part of the business, and not the reason why texas had a problem and a big wind farm coming up near me and apparently i won't be able to see it on the jersey shore, and you know, carl, wind, we're a windy country. and all of the big data centers want to be located where there's wind, and we forget we're more windy than sunny and larry culp he understands this stuff and i was trying to get him to do green hydrogen and he likes all of the other hydrogen, bus the turbine business, you know when ge will get to the 20s >> tell me. >> when they call them turbines and not turbines. >> and the green hydrogen thing didn't go over too well? why didn't you go to gamestop. you're always coming up with new business models for that. >> absolutely. i mean he keeps saying, and i sent a memo, hydrogen, and four weeks later, came back and said i'm sorry, i didn't look at it.

>> green hydrogen will not be it. >> he's a realist. i'm a dreamer. >> green eggs and ham, i don't want to get into that. >> david, i'm sorry. >> what? >> he was a real left wing guy, you know. >> who >> geisel? >> he was great. if you watch that, did you ever watch, it came back to an unbelievable special. >> look, he was the most left wing so we may not, we may not thing that he's right right now, but at the time -- >> it's his determination that made that decision. >> that's true. >> let's get back to business. do you see this deal, a private company, $6.5 billion deal, okta, all stock, moving strongly into, what is it, where is the press release. >> the enterprise, now moving to the customer >> yes. >> i really like the deal. and people like andrew, maybe they were paying, look, they're paying not cash, they're paying

stock. at a higher level. 271. >> 276.3 2 1. >> -- 276. >> i begged him to get into this business. >> and they combined and they cut this company off, developer centric identity solution with okta identity cloud and drive tremendous value for both current and future customers >> look -- >> i was looking at it authenticity that kind of stuff. >> was it defensive? they need to be in that business david, you mentioned bhp earlier. >> yes,i did. >> where is it located >> in australia. >> and what companies had a big fight with australia >> facebook. >> and the stock is up today. >> yes, the stock is up. down 5% for the year but the facebook shares are up 1.4%. what do you make of that >> well, i think that this is a good stock to watch, because david, it's, 19 p/e, versus these industrials that sell, i mean what is the p/e of boeing

don't you need some earnings to figure out p/e >> 19 p/e, with 33% revenue growth last quarter, right that's what the top line was 33%. >> i prefer boeing which has very little business at all, and what business it has is kind of hobbled. but it doesn't matter. carl, boeing is the ultimate opening stock, because if you think that people are going to travel, you can only book so many cruise line, eventually you will book an airplane, and the airlines have not kept up, and a lot of airlines do not understand that we are about to have the boom, maybe not since the end of world war ii, the end of world war one and people will want to go places and moderna and pfizer vaccine, the prices, get them i have never seen prices like this and if they maintain the prices, we will want to go and do our shows anywhere mexico city. $300. >> we talked about it yesterday. we talked about it yesterday, jim, the bargain, the relative bargains right now in travel but i know you saw the ism survey

comments on prices paid yesterday, highest since '08, comments like unprecedented demand for supply, port challenges, i assume it's a matter of time before it does feed into the consumer level of pricing, right >> at what point does jay powell say look, i'm conscious that con ser over $4 and lumber doubled i think at a certain point jay powell has to say you know what, there are parts of the economy that are too hot and that may be the, david, that may be that moment where you get the bonds having their final give-up, perhaps, when he acknowledges that? >> is that what it's going to be >> when you have the crescendo of bond selling, when he says you know what, i'mconscious of this janet yellen was conscious of it in november of 2015, which is where the big sell-off started >> interesting >> yes >> interesting >> we were there >> yes, we were. there. >> we've always been there and we may very well always be there. >> but rates are down today. so you can frolick. >> i can frolick >> i can frolick

>> frolick in what >> you can buy high growth how is snowflake doing take a look. >> slootman. >> i'm scared of slootman and i have asked him questions, and he basically said if you knew what you were doing we could answer that question. >> he doesn't suffer fools >> he has book out you might want to read it. >> jeff ubben has a book >> jeff immelt. >> the wrong jeff. >> i read that. >>s what what was that >> it was a good read. >> the interview is still out there by the way on cnbc.com. >> oh, my god, how many interviews have you done >> i find you everywhere. >> i have to spend 50 minutes searching for it to find, it but you know, it's still out there >> david, i'll google it later. >> thank you. >> you're welcome. >> appreciate that. >> because i had just started following this situation, i got to keep following it corelogic. they said no to costar which is surprising >> you got to be kidding into. >> he one of these growth name,

50 multiple, although, they will tell you, listen, for the last four years, the average multiple has been up there. there is corelogic shares not giving up any ground, look at costar, it has come down a lot since they made their latest bid which did include some cash and seemed to be on paper as much as $97 a share but when you watch costar's stock price start to go there, that is the end there, and you can slow it over the last month which is something. 920 to 760, there it is, they want more cash, is what corelongic is saying, jim. and they're afraid, they're like well well if it is a 50 p/e, and maybe 30 >> and this is when they buy it and come public with it three

years from now. >> it is still 83, 84 bucks a share, versus the 80 they've got in hand but they could vote on the deal in six week, the proxy is already out we'll keep following it. by the way, on options and things of that nature, did want to mention coherent, remember the laser company? >> yes. >> it is due tomorrow night from what i'm hearing so we should know something over the weekend. you've got three, i think it will be best in final, the three-way may get resolved, but coherent, who knew lasers were so in demand >> yes >> i didn't, carl. >> jdsu did. >> jdsu. >> yes >> beret. >> yes >> google. >> thank you >> i thought about wearing a beret for some time. kinds of, you know, it's my -- >> my grandfather used to wear a beret and he had a head of air like yours

>> -- a head of hair like yours. >> very sharp. i encourage it. >> i like it, guys. >> the nasdaq did bounce a bit here just south of 13 k it was briefly the lowest since january 29th let's get to bob pisani. hey, bob. >> good morning, guys. happy thursday is the kind of market the market really likes because you've got a broad rally. you have the tech sector up. and you've got the reopening sector up. so you've got energy up. you have generally banks up. take a look at what is going on industrials doing well consumer staples, generally flat to lagging but that's the story all year, so this pleases the bull, when you see, this the probably is the damage is already done and a significant correction going on in a number of sectors and not just technology by the way, so if you look at ipos, 16% off the recent highs and a lot hit their highs in january and early february, and biotech, both the idv and the other major etf, 14, 15, 16% off the highs and china the biggest market of the year, and up until the middle of february, and 10% correction there, and

nasdaq 100, heading in that direction, down 8%, and mega caps, some of them, the clip sector is basically hit their highs in the middle of january, so d xilinx and amd off their high, 28%. and facebook, apple, amazon, they all hit their highs, amazon a while ago, and apple again in the middle of january, the good news is the multiples on these are coming down, and that's very good news for the markets, so if you look at the end of january, apple was trading at 34 times 2021 earnings numbers, and that's a very high multiple for them, and now it's come down to 27 that's a lot more reasonable so the correction is good for the market bringing the multiples down. this all corresponded to the move up in interest rates. cathie wood's ark fund for example, hi was february 16th. that's not a coincidence that's when the interest rates started moving up, the 10-year from 1.1 to 1.2 and that very day, within a day or two of that and that was the cap for a lot

of the mega cap tech holdings and down 22% since then. not a big rout not a lot of people moving money out of the fund yet but she's off 22% from the highs on february 16th. where are we right now the key story is the reopening narrative still intact the most important thing that we've got, the vaccine rollout and the replacement story and the rising bond yields hurt the tech rally and the plome tum indicators are stalling out the mega cap tech names overall. finally, jim was mentioning the buzz etf, a lot of hype around this, jamie wise is on, at 12:30, the originator of the buzz, just started trading two minutes ago, the van eck social security number that attracts 7 a stock, most bullish sentiment, largest holding, no gamestop, twitter, draftkings, ford, american airline, facebook here, and so they're very aggressive saying we are not the reddit etf and push back on that and he made it a lot more complicated

by bringing in dave portnoy, and what we've got here is a hall of mirrors. we have the owner of an index company, hyping an index who is himself the subject of the index so the whole post-modern conundrum where we're all in a hall of mirrors sort of staring at each other. it is an interesting question for people who want to invest in this, does social media actually indicate a direction for stock prices number one, and number two, is it an issue for regulators when you have this kind of setup? we don't know what the answer is and i'm not sure what the regulators know, either. carl, back to you. >> it's going to be a strange new chapter, bob thank you. the lingering question is what powell might say today at noon, if anything different. rick san telly's got it. >> many people think it will have to do something with doing the twist but we'll have to wait and see. look at the 10s. 1.38 to 1.48 creating all of these issue, isn't it hmm. at 1.46 now.

down a couple of basis points. bob nailed some key points ark, so tesla, and interest rates start to go up, where's the real channel there hmm. margin calls you got to defend your position. a losing position. a big losing position. with cash. and you have to find cash. and you have to pay big on cash. there's one of your major channels now, if you look at a data chart, it really is mostly sideways but at lofty levels and if you look at a one-year of 10s, you can see basically highest levels in about a year but here's the point let's zoom down, let's zoom down to january 26th. hmm, what was january 26th beginning of a two-day fed meeting? what was the fed kind of discussing we all looked at the minutes, hey, they're not really into tapping the brakes they don't tell us anything about the fate of huge buybacks, and of course, it seems like, even though jay powell said he isn't, he certainly doesn't seem to be pushing back on the biggest stimulus package in

history, that is being voted on and there's some questions as to a, why rates are higher, or b, why some of these stocks are going down, well, i'll tell you what, you know, halfway back on some of these stocks, we're still not there. think tesla. now, if we look at that chart, once again, rates just zoom, and they hardly look back since that fed meeting so i think a lot of it has to do with rates, it is what you think about the fed, and their policies, and whether they can continue, or not. or not and if you look at 10s minus boons, they're hot, 1.78, and 10s, minus 2s, the yield curve hasn't had a lot of pullback here and if people really believe that the twist was coming, maybe they should pull back a bit but let's wait and see and let's wait and see if we're doing a little chubby checker twist by the end of the day. carl, jim, david, back to you. >> all right, rick, thank you. rick santelli. we're going to keep our eye on the markets here. first gains in three days, although the s&p is really flat. nasdaq is still south of 13 k

here back in a moment

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buy a stake in music service title. they will pay 297 million in cash and stock jack dorsey said the services' original artist will be the second largest group of shareholder. sean carter, better known as jay-z, will join the board when the deal closes. for his part, jay-z says the partnership will be a game changer and calling jack dorsey one of the greatest minds of our times. jim, for those who wonder what the two have to do with one another, jack's general point is artists need better tools and that there is some symmetry where some might have trouble finding it >> this is a tougher one for me to get i know i like square because they've got cash app, because they are a got place to buy crypto i like it because they have

tremendous point of sale, but it's -- i always feel this a it's an ecosystem to help small business this doesn't really fit in, but maybe -- i mean, it would have fit in better with twitter i don't know david, i'm a little lost but jack works in strange ways. >> yes, he does. and he wears a very long beard >> that's it, huh? >> takes long -- he is off campus a lot, right? >> well, he has done well. >> he is thinking. >> the company is doing well. >> he is thinking. >> that was helpful. >> yeah. year to date, year to date square still beating the s&p, not by a lot up almost 4% of course, twitter, which for a while in january was the biggest s&p loser, up 29% for the year a bk aine. wereacin mut

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tonight? >> solar wind has been underreported. i am bringing fireeye on and then splunk, a great job in the quarter, but it is nasdaq,

who knows what will happen >> jim, see you at 6:00. "mad money" with jim cramer 6:00 p.m. eastern time good morning welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber and morgan brennan jim is right the tech sell-off continues. nasdaq is now officially once again flat for the year. ten-year 146 factory orders are up. let's get to rick santelli >> yes, january read on factory orders is coming in on the wires as we speak. up 2.6 it was supposed to be closer to 2% this is definitely a very, very nice number. and if you consider that the final read in december was 1.1, it really starts to look pretty good sequentially. if you strip out transportation, still very buoyant at 1.7. finally, if we look at durable g goods, remember, we had a minimum on 3 this will be replaced by this read this becomes the january final read and it is 3.4, which is

exactly what the mid-month read was. you take out transportation, 1.3, 0.1 lighter and the most important part of all of the data today is this particular component, a proxy for business spending it's not only light now, it's light before covid that koim out at, drum roll, please, 0.4. 0.1 lighter than the rearview mirror look and that 0.5 that turns into 0.4 is the lightest since we had negative numbers minus 6.6 in april that is not a very optimistic view of the world with regard to what businesses are doing, but, hopefully, post-vaccine we will start to see the numbers kick up a bit. shipments versus orders, it also underperformed by 0.3 from 2.1 mid-month to the now final read at 1.8 morgan, back to you. >> something we will watch closely. rick santelli, thank you. markets coming off a down day. tech the top laggard

the nasdaq falling over 2.5% in yesterday's session. this morning as you can see, as i just mentioned, it's a little bit of a mixed picture, but again we do see the nasdaq down about 1% right now, going negative year to date. lee baker the owner and president of apex financial alongside yanna bartin good morning to you both the weakness we are seeing in tech right now, and certainly we are seeing that as we have seen yields in the bond market move higher in recent days, is this an expected or a healthy pull back right now, or is this, i guess, a warning sign that -- of something steeper in terms of a correction >> good morning, morgan. i think it's a healthy pullback in various pockets of the market i think it's a remainder that higher growth opportunities don't come without risk. a few statistics for your viewers, the information

technology sector in any given year experiences a 15% drawdown. that is from peak to trough. we are about 6 to 7% for context, last year we saw an average decline 39%. so higher growth opportunities certainly much more volatile but i think longer term, tech remains a place you want to be because sec long-range tailwinds are going to wage and solar wind, cybersecurity, infrastructure plays, all of those are within tech, but investors need to think outside the i.t. sector box and go to other areas of the market that allow them to play these tailwinds like industrials, like health care, like consumer so lots of opportunities for investors seeking growth. >> yeah, that's a key point right there. i want to get your thoughts on it because, i mean, not all tech is the same, right so i guess how are you seeing this pullback? is it presenting opportunities and would you see those within i.t. or some of the other sectors where we have seen this

digitization of everything take effect >> i think it does present an opportunity, but i think it requires you being selective so that you don't get enamored with the i.t. sector broadly. i think there is a difference between the microsofts an apples of the world, those types of companies, i think this is a buying opportunity because long-term i think we're still going to see them be the major players and continue to grow there are other names. perhaps not so much. we are looking at the nasdaq and the tech sector, i think we can experience a bit of a bifurcated market for a while i absolutely agree that this presents a buying opportunity just perhaps requires you to be a little more selective than other times. >> yeah. meantime, yana, i'm curious, how much weight you are putting on comments from fed chair powell today. certainly he is in the spotlight given the fact he is going to be speaking at noon the moves in the bond markets and equity markets to talk about

things like operation twist that could be coming the next couple of weeks do you think that is a possibility or do you think it's being overblown right now? >> it's very difficult to gauge what will happen but we are certainly watching all of the macro inputs that you mentioned, ten-year treasuries the most important one i think if folks are worried about rising rates, risen inflation, again the information technology space has shown historical toly to be a great hedge because. pricing power that comes from dn i also that i tink that the poi an average stock's return is really important while the nasdaq is flat to slightly down, there are over 70% of its constituents base that is outperforming the nasdaq composite. average stock in the s&p 500 is actually outperforming the broader market, but almost 500 basis points it's up about 7 percentage

points so this notion of being a stock bigger, this is the time you have dispersions running high, the return spreads between best and worst, this is the time to pick your spots i think over the long term, you'll do well. >> lee, no doubt powell will say that inflation habits and long-term trajectories don't change on a dime and that we might get a transitory spike, but long term the inflation view is going to be one that's going to be tough to get higher. i wonder though, he also admits that there are pockets where inflation is very concentrated, and that sort of leads you to worries about margins in certain sectors. how much of that weighs on your view >> it's something that - >> well, i think - >> sorry go ahead. >> lee, go ahead. >> okay. so, no -- >> lee, that was for you. >> got you that causes some concern, but what i'm working to find is we're really looking at broad-based portfolios and things that are built for the

long term. while there is a concern it might cause issues on the margin and, you know, we'll see those inflationary pressures in certain pockets, i don't think there is a huge concern about broad-based inflation that will cause a significant problems in the markets. >> yana, sounds like you have thoughts on this and where that falls within the spectrum of biggest potential risks for this market right now >> i think the starting point is really important i think if you look at the net profit margins on the i.t. sector as a whole, it's two times that of the market, about 22 percentage points you are ebit margin is actually higher if you think about the starting point and the, you know, asset, like, models that you are dealing with as it relates to software and other businesses that are really thriving, the inflationary pressures are much more easier to sort of digest. and your second question, i'm sorry, i forgot what you asked

the risk to the market obviously, the volatility, everything we are talking about as it re-rlates to the retail investors and these moves that we have seen various pockets of the market, which is why i think right now the horizon, the investment horizon is so important. don't get sidetracked by what's going on in one day or one minute focus on the long term because the equity markets have been a great place for investors over the long term. >> we will leave it there. thank you for joining us major averages are all in the red right now. the s&p is down about half a percent around 3,800, the nasdaq is underperformer down 1.5%. david. well, melvin capital the focus of the reddit repelian chipping away at january losses. a nice rebound in february leslie picker has that story for us. >> there is little doubt it's been a rough 2021 for melvin capital, but the firm at the center of that gamestop saga is starting to turn things around in february. we've learned from four sources

familiar with the matter that mall vin posted returns of 21.7% in the month of february those double-digit gains came after losses of 53% in january on some wrong-way short bets the performance and some inflows brought assets under management from 8 billion at the end of january to nearly 11 billion by march 1st. a source close to melvin tells me that there hasn't been really any massive changes to strategy. they are focused on ensuring they have ample liquidity so they don't get stuck in the event of a squeeze they will have more but smaller short positions which limits their exposure to certain names. their long side remains unchanged i am told. the firm declined to comment on performance. melvin said previously though that it closed out its gamestop short position in january. that holding, of course, is what caught the ire of the reddit crowd, put positions towards the end of 2020 making melvin a

common enemy for the gamestop bulls. snarled in the web of gamestop, appearing before congress a few weeks ago, as lawmakers sought to unpack what led it the volatility in certain stocks as melvin struggled in january, two other hedge funds invested $2.75 billion to help melvin stabilize. david. >> yeah, i have been trying to understand the relationship between melvin and citadel and .72. i don't know - >> me, too. >> okay. i mean, it said they are simply investors. it was significant capital for them and important component of .72's numbers, those points that they had at work at melvin. >> that's right. they essentially ran a fund that was basically a levered melvin fund that they mirrored some of the positions. gabe plotkin, former protege or

current protege of steve cohen, worked at s.e.c. capital when that was the fund that steve cohen ran, now point expectation 72 and seeded melvin from the beginning and put more capital in in january as the firm struggled. but you're right i don't quite understand it's not clear whether they are invested as a lp, gp, combination as both. it's a little bit murky there. >> yeah, and may continue to be given the lack of communication we get sometimes from those firms. thank you. big show ahead on "squawk on the street." an exclusive with the ceo of bed, bath & beyond meantime, worst three days for the nasdaq in three months red for the year lowest intraday since january 6th. ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming. do you stay down? or do you get up?

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the street." bed, bath & beyond announcing the biggest change in its product assortment in a generation plans to launch at least eight new owned brands in fiscal 2021. courtney reagan is along a special guest, the ceo of bed, bath & beyond in a cnbc exclusive. >> thank you thank you, mark tritton, for being here with us today ceo of bed, bath & beyond. a big announcement from you coming out with eight owned brands that you are going to be launching this year. we know you have a history of this at your previous employer at target. launching 35 brands in 3 1/2 years. but bed, bath & beyond is a very

different retailer than target what are your expectations here? it's getting to be a crowdeding market in the world of private brands. >> good morning, thanks for having me on i think it is a different market, but it's also a pivotal market i think what we have seen from our research in 2020 alone, we have seen a migration to owned brands across the industry, not just in home so customers are open to new brands, exploring new brands from trusted resources and retailers that they have a great relationship with. we believe that bed, bath & beyond is well poised to be one of those, really curating differentiation in our assortment, scrubbing through that reducing our overall skew ratio and focusing on great national brands we partner with that really accelerate our own brand is a true differentiation to create preference in authority here at bed, bath & beyond >> and also march has to be key, too, right you have to have higher margins

on the private labels. what are we looking at definitely there is a spread there. i think that we see that as a really fantastic outcome, but not our key motivation it's a great motivation. but the opportunity to create custom products for customers' homes at really affordable price points, good, better, best in every one of our categories to drive differentiation, innovation and quality is our driving force. it's true that margin is really nice gift with purchase and we will end up having a higher penetration of owned brand than in the past. we are about at 9 to 10% currently and the next two or three years we see that creeping to 30% penetration so its impact on not only sales, but ebidta is significant. >> you talked about sort of curating this assortment you have taken out a lot of re skus how do you make sure that customers and employees aren't

confused i went looking for things, employees weren't sure if they had it, where it was things have changed an awful lot. >> yeah, we talk about this. at the lincoln center store we are midstream in a remodel as well as the curation of product and introduction of owned brands. >> this is the first week. financial year we are excited to bring the different strategic pillars together what we have doubled down on is the communication and training and awareness for our store teams who are the front line, associates in the communication of these ideas and where to find things so renavigating some stores because of the remodel is always new, and challenging, and we have plans against that. also to a comprehensive game plan for our store associates to communicate our new brands, the benefits and how they can build joy in our customers' homes. >> mark, it's morgan

i want to pull up a chart of bed, bath & beyond year to date because i think the chart tells the story here this reddit-fueled trading frenzy, bed, bath & beyond shares definitely swept up in it you can see it on the chart. i want to get your response to that and the diffactivity we sa this the shares especially given the fact that you had an accelerated share repurchase plan in place. >> yes, we have a very protected circumstance we are prudent we extended by a one-month period our averages in terms of share price, still remain incredibly competitive in terms of where we are purchasing at. it was a sharp moment in time, very strange i think we kept our focus on our customer and our business and our transformation and as a result we found an interesting outcome. we've seen that many investors and analysts have taken another look at bed, bath & beyond amongst those names and others and said this is different there is a real story of really

agile transformation, a three-year growth plan that's credible ebidta trajectory that's very, very strong and real change happening in real time today we get to share some of that change with the opening of the own brand strategy pivoting in march eight brands over the course of the year really driving true change in sales, profitability, and our customer count growth over the last year has been fantastic. so the moment was interesting that people had a different take on us versus the noise that was going on, but also reaffirming the very strong story that we had already built. >> yeah. in terms of whether it's the new brands and the products that will comprise them or whether it's the inventory that's on your store shelves currently, given the supply chain snarls, delays in ports, different areas around the world right now, how that's effecting you. >> our team have been looking at this comprehensively from day

one. supply has been difficult in some key categories because of high demand that happened at the early part of covid and vendors scrambling to get back into stock for that all-important holiday period and beyond. we have worked with our vendors to get back into our in-stock levels, increasing by the day. the own brand portfolio, we really built in contingencies there and worked closely, merchandising, marketing, digital stores with our supply chain partners to really be ahead of this curve ready for launch so we're feeling really good about our supposition both in terms. launch an beyond we are off and running >> mark, you are undergoing a transformation while the world is undergoing a pandemic we have seen a lot of consumer behavior accelerated, particularly what we saw online and the desire for things like curbside i know bed, bath & beyond tried to implement some programs pretty quickly which of these behaviors do you feel are going to be permanent changes for the consumer, and

then how does that change your strategy and business model you had put in place before the onset of this? >> the good news is it reinforces and ac set rates the existing strategy we put in place. i had great experience in prior retailers around the -- i brought those experiences to bed, bath & beyond one of the first things, prior to the covid moment, was really focusing on a digital capability, which we're very behind we were operating in a single silo, weren't getting the growth like everyone else was getting and thinking around a customer centric experience what has been accelerated and what what will be maintained is the power of a omni channel environment that that customers can go online, come in store, they can shop one and pick up in the other. the immediacy and the ease and convenience that customers have learned about same-day delivery, ship from store, curbside, i

think they are here to stay. our accelerated strategy that we put into place during covid an built equity during 2020 is really a stable foundation for how we are going to see '21 beyond growth and i think the behavior of customers. digital, ease and convenience, really coming into a close connection point >> before we let you go, you are undergoing an awful lot of changes. we have to ask, you are not going to pull a ron johnson and jcpenney, are you and get rid of the coupons? customers love those. >> no, we love the -- thank you for the question we discussed it before no, we love coupon we think it's synonymous with the love of the brand and the love of coupon and we want to bring that great value every day to the customer and provide them with an additional value opportunity. so beloved opportunity for great value, just used in a more strategic and smart way. so we found that like any great asset, we are a great brand and

the coupon was a great asset, that we weren't trading the right way. strategically focusing on the customer, listening to what they want rather than flooding the market, really coming back and providing coupon as an zwrefr day opportunity and ensuring when the customer comes to the store online they are seeing great everyday value and comparative price points, wihich we already established in the marketplace with own brands in place from opening price points through, we will see exceptional value and then the coupon just becomes an incredibly beneficial additional opportunity >> okay, good, because i have a bunch in my drawer mark tritton, t thank you for joining us, ceo of bed, bath & beyond. >> thanks, courtney. still to come this morning, we will check in with our cash and talk about the tech sell-off, powell, the reddit rebellion and more in the meantime, s&p now trying to hold 3,800, below the 50-day for only the second time since jaarnuy.

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but still down 1.3%. wanted to focus on spacs we talked about them so often for quite some time. those companies that announce a merger with a spac in which the pro-forma entity is valued at a certain multiple to 2026 revenues those have been doing incredibly well, until recently you see what happened to our cnbc spac 50 and post-deal as well the area to focus on is after the deal announcement, but prior to the vote and prior to the so-called despaccing we look at cciv, which announced a merger with lucid and is town 60 bucks a chair to a current value of $22 and there it is we can look at acic. we talked about that one that's flying cars or actually electric flying taxis, archer is the number of the company there, atlas crest is the spac. what happens is one question, if, in fact, you see some spacs

fall below $10 a share remember you can get redeemed. in fact, the deal itself may not happen as a result you do have the pipe that can fill in some of the holes if a lot of shareholders do choose not to go forward with the deal or redeem. but it's something that may start to come into play here, carl, as we watch a great deal of weakness in the sector broadly, both those that announced and de-spacced, quantumscape, on and on from there. but you also want to keep a closer eye on those that have announced the deal and have yet to actually have the vote and close the deal >> yeah, morgan, i hear you nodding there. [ laughter ] >> nodding verbally. >> yeah. i mean, david, the weakness, obviously, not just in the spac market but now the ndx, which is down a full 10% discount from the high guys, we'll start with our "etf

spotlight" here. the global fintech etf finx up more than 40% the last year of trading. biggest holding in the group, square, as we said earlier, acquiring a majority ownership stake in jay-z's music streaming service title. a good threat from jack dorsey on the reasons behind that if you go on twitter and look "squawk on the street" is back in a moment. the world's first fully autonomous vehicle is almost at the finish line what a ride! 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

welcome back i'm rahel solomon. here is your cnbc covid update at this hour doctors say that for some people getting the moderna vaccine they are seeing a delayed reaction that produces a red, itchy arm rash a week after the shot

doctors say don't be alarmed, the condition is normal and ultimately harmless. german regulators allowing people committee on foreign investment in the united states to get the astrazeneca vaccine initially several european countries, including germany, limited use on lack of data. that and a rush of delivers has two million doses waiting to be used. the world health organization team in china is planning to scrap an interim report on its search for the origin of the covid pandemic the wall street reporting that the moving comes was the u.s. pushes china to release more information about early cases and as a group of scientists call about a new conversation with more ac taccess to data. miles driven fell 13% last year, as the pandemic kept many people om home run, vehicle fatalities increased 24% the national safety council blames more speeding, more distracted driving, and in some places more impaired driving

morgan, back to you. >> rahel solomon, thank you. as we head to break, watch online auto retailer vroom, down 26% after a wider-than-expected loss even as the company sees used car demand top pre-pandemic levels the biggest drop since last june amid this broader sell-off in the market 'lbeig bk. stay with us ♪♪ ♪♪

where one market bull is seeing opportunities as rising bond yields spooked tech investors. adgniocnry on trinatn.bc.com more "squawk on the street" coming up.

about 90 minutes ahead of jpm's appearance noon eastern time, markets wobbly the s&p 3,800 and the nasdaq briefly went red for year to

date a lot to talk about with art cashin, director of floor operations who joins us with bob pisani bob, take it away. >> thank you very much, carl art, good to see you looking terrific spring is here are you rearing to go? have you you got your vaccine? how are you feeling today? >> i am dying to get out and marinate some ice cubes. >> we are going to do that soon. powell is going to be speaking there seems to be endless anxiety around powell. he said they are going to keep rates low for a long time, they are not going to taper for a long time. nobody seems to believe him. what does powell have to do today to convince people that it's a long way off all these anxieties, or is it? >> no, i think what he has got to do is people believe what he said, that the fed has no interest in raising rates. however, some of the data coming in seemed indicate that inflation might be moving a little bit more aggressively

than the fed had thought so that raised the idea, has the fed lost control of the yield curve? is the fed somehow indifferent to what's going on so, and the important thing for the viewers there, bob, is it doesn't matter whether they lost control or not it's t-- if the market believes they lost control, that's just as dangerous and damning so i think what he has to do today is state, yes, we are aware that some inflationary aspects look stronger than they had, probably he should cite things like prices paid yesterday, the highest in a number of years. say, yes, we are aware of that that's still within our picture. we know where these things are going on and then maybe even get into discussing operation twist, which would say that the fed realizes that the yield curve is a little bit out of shape and that it is going to change its

operation in the maturity data, what it buys, to try to get that yield curve in better shape. i think that will reassure the markets. i don't think he can definitely have a magic wand, but i think those things, if he can convey that, yes, we are on top of the game, we're still in control, and we are going to maintain that control, that will reassure the market and that really, that doubt, that anxiety is what caused these market temper tantrums in both stocks and bonds. >> yeah. so where does this leave the markets? are we at an inflection point? the good news is the reopening narratives intact. the vaccine is expanding the stimulus is coming the reopening story is here. yet, stocks have stalled out on just modest moves up in interest rates, particularly the big megacap stocks are we in a situation where the good news is the reopening is

here, the bad news is the market is going to have a hard time moving forward from here what do you see with stocks in the next few months? >> the good news is the reopening is here. that's part of traders having doubts about the reopening will the economy suddenly flare up instead of, you know, coming along slightly if it does, will that put major new inflationary pressure on prices we are seeing in the housing market lumber is at record highs, copper is moving up so they look at that a little bit weirly and say, okay, i know it's not owl of control, but what does is it doing? so your point about the reopening narrative is beginning to play out. yes, the economy looks like it's beginning to grow. you have got some people with estimates of 5, 6, or 7% growth. that's super but if it comes at the cost of

much higher prices forcing the fed to act, that's something the market is not ready for. it's just how much medicine is good enough. that's what we're worried about and that's where powell can be very helpful if he says some of those things, see the reopenings playing out, the vaccines, the immunity, but will remain aware not to let the resurgence get out of shape and force us to raise rates too much those kinds of reassurances will help. >> art, a lot of that inflationary pressure is coming from logjams that you can chase back to weak infrastructure. the president is going to meet with a team today, some house members on potential infrastructure legislation reuters has a piece about him adding some specialists to his senior ranks on that front does the market believe that's doable, especially given what a heavy lift this covid bill has appeared to be >> yeah, i think they do believe that, carl infrastructure has been a

problem here you remember a phrase from a few years back about projects being shovel-ready well, we didn't get them and even then they were talking about moving into infrastructure what we're seeing with the covid relief bill is a big debate in congress how much of it actually goes to covid? how much of it is gratuitous donations to states, localities, pension funds. so the money is there. people are fighting about it i think infrastructure would be a concrete move. we are beginning to see that, you know, in the caterpillars and so many other materials-related things i think the market and the economy would very much like a move on infrastructure, start fixing those roads, fixing those bridges, things of that type that's concrete spending that people can understand. >> art, we have a new social

media etf out today, the buzz etf. this purports to be able to pick stocks based on how often they are being mentioned on social media sites like stock twits, for example. you have floated the idea in the past that the reddit trading crowd needs to be careful because there is potential for them being manipulated in their own chat rooms can you expand on that do you have any -- what's your thinking about that? and do you think it's even possible or a good idea to try to pick stocks based on social media mentions at all? that's what this etf is about. >> well, let me start with your point. this is very important, and you have had some people in the financial media, not you guys, but some other people who adopted this whole short squeeze reddit wallstreetbets routine as if it were a revolt on behalf of retail let's stick it to the hedge funds, let's get these guys.

there have been people in your business who have repeated things like, oh yeah, this is different, these are the little guys they even write, we don't care if we lose money as long as we stick it to the hedge funds. that's garbage i believe that some guy, maybe even another hedge fund, with a lot of money if the viewers bear with me for a second, let me tell you how i think it may work. you find stocks with reasonably highshort interest and particularly low flow, availability of shares then you get in a chat room where there are a lot of retail clients who are inexperienced clients that aren't quite sure how the market works the next step is a variation of what we saw when there were bear raids on lehman and bear stearns. in that case it was out of the money puts being bought. this time they go in and buy far out of the money calls first you take a position, okay,

if you are that manipulating th. you take a money in the money calls, in things that are cheap selling relatively, maybe even for pennies, then you go and buy calls that are 20% or 30% or 50% above the current striking price since those markets are thin with a little money, you can wind up paying $6 for a call that's 30% out of the money. then you go back in the chat room and you say to all of these rather naive people, hey, look at that, somebody just paid a whopping premium for this thing up 30% this is really going to move and then maybe you buy a little bit of the stock, letting it lift so suddenly they look and say, oh my god, he is right look at this thing let's get onboard. the train is leaving the station. and they begin to rush in. the guy who started the whole

thing reaps a nice profit when they take it up 30% or 40% or wherever he had his target moving and then they begin to roll over, as we have seen, in many of these stocks so this is not, in my mind, this is based on 60 years of cynical trading. i remember chat rooms and i omega and whatever i have seen this game before none necessarily just like this, but rather like this folks should be careful. i think if the new s.e.c. digs down, they may find some manipulation is going on certainly very - >> yeah, art, bob is right you were early on this thesis. it's interesting to hear you get more specific over time. art, we know it's a special day coming up this weekend we couldn't let you go before we wishing you an early happy birthday and taking a look back at some special moments, take a look at this >> how about this one? arthur d. carbon jr., december

30, 1964 look when we got here. >> this is art's birthday. look at that it's 12-year doers you can probably put that to good use >> it won't make 13 years, that's for sure. >> what is your secret when people ask you, your secret to endurance, to energy, vitality what is it >> i'm pretty much distilled in no kwang chol. ♪ we will be happy nelly by and by ♪ >> sue sends you a big kiss. hold on. muah ♪ happy birthday to you ♪ ♪ happy birthday to you ♪ ♪ happy birthday dear art ♪ ♪ happy birthday to you ♪ [ cheers and applause

>> thank you. >> it's a treat to look at those pictures, art. it's a big one this weekend. happy birthday >> i thank you, and i appreciate you you spending some perfectly good air time on a worthless old foeggy who just has a good memory, and a thirst. >> we look forward to having you back on the new york stock exchange. >> my pleasure. >> look forward to having you back, art, at the nyse. >> thank you very much >> art, thank you. and, bob, thanks to you as well. >> happy birthday, art. still to come, he is behind the camera for some of the biggest movies in hollywood, director john chu is going to join us after a quick break. don't go anywhere. ♪ ♪ we made usaa insurance for veterans like martin. when a hailstorm hit, he needed his insurance to get it done right, right away. usaa. what you're made of, we're made for. usaa [announcer] durán catches leonard with a big left.

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with xfinity mobile, you can. ♪♪ how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings. movie theaters in new york city are set to reopen tomorrow for the first time since the pandemic began, even as the major studios continue to tinker with that theatrical window. joining me this morning with some insight is jon chu, the upcoming movie we cannot wait to see. jon, it's great to have you. good morning >> great to be here, carl. thanks >> your career has been so fun

to watch it explode. it's happened just as distribution channels have changed dramatically does it matter to you where people watch "heights" or not? >> my movie specifically, listen, i want more people to see it than ever before as soon as they can especially during this time. theatrically that's where it was meant to be, to be shared with strangers in the dark, to bring your family out, to bring your friends out, to sit there and have popcorn and have an experience i hope people see it in the theater. i hope it's safe enough, and it seems to be screened that way. of course if you can't have access at this time i think the availability at home is great, too. i'm good either way, but my preference is go see it in the experience what it's like to be together again

>> i think a lot of people would agree with that. the second question is for someone with a lot of creative leverage like yourself, how much of that feeds into your next pitch, your next deal, is it a leverage point where you're saying, look, i'll do this but i want it to be in the theaters? >> i mean, listen, i think as a storyteller to know your medium of where you're delivering is very, very important, being surprised and not having it delivered in a way you didn't plan it to be, i think, there's a problem with that. so when i go into a deal, i want to know, am i doing this on the stage? am i doing it in a giant theater for film am i doing this streaming? i think the audience comes in. i think a lot of people don't really think about this, but when you come in the audience has certain expectations even on streaming. if you go watch something on youtube versus something on hulu

you have very different expectations, and something different on netflix, how long you are expected to sit there, the contract between you and the content maker is in a theater it's even more so you're paying money to sit in the dark and spend time with your phone off and you're trusting them. there's a contract there and the storyteller is trusting you that you're going to do those things and pay attention for two hours. and so i think that makes a huge difference it creates a space to deliver a message. that's why "crazy rich asians" if it was streaming wouldn't have the impact because a giant corporation like warner brothers put it out there that this was important for people to go see these people who look like me were important for you to spend money on and invest in and go watch. i think because it seemed true to people and them got their friends and gathered other people it created a whole new lane for actors.

i think that's what "in the heights" has the opportunity to do and theatrical has an important place in our culture and culture change >> it's david faber. i completely agree with that i am curious about the changing economics of somebody in your position given the so-called back end that would typically rely on revenues from things being in theaters. how are you negotiating new deals? the windows will be much narrower even for theatrical for all the platforms. do you take more up front? i'm curious, how is that negotiation changed? >> it is different for every project depending on the studio, whether they have a place to output on a streaming site, but, yeah, it's the wild, wild west we are hammering it out. all the lawyers are fighting with each other to figure out what is the new normal

and i think we just don't know i think there is a temporary normal, and in that case we have to protect ourselves and no matter what a studio says, if they can change their mind in the last second you have to protect yourself that's the hard part about the distrust right now is we don't know but, at the same time, that's where we're at i get it that's what lawyers are for to figure all that stuff out. i think we have to just -- this is the time. you're asking me hard questions right now. >> lawyers need those lawyers >> jon, we can't wait for "heights." >> well, i was going to say -- >> it's been a long wait, i feel -- go ahead >> go ahead. >> no, i was going to say it's going to be something to watch, and we've watched it through

production, watched you wrap we have to wrap up because the top of the hour is coming up please come back, it's good to see you. >> good to see you, too. >> that was like a jinx right there. carl, thanks looking forward to that as well. coming up an exclusive with snowflake ceo frank slootman "squawk alley" will start on the other side of this break [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today.

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good morning it is 8:00 a.m. at snowflake headquarters in san mateo, california it's 11:00 a.m. on wall street, and "squawk alley" is live ♪ ♪ ♪ ♪