discord, or discourse, will happen. >> when you award people that own assets, with inflated asset prices, i don't know what you expect but that's what we're seeing kyle, great to have you here today to talk about all of this so smartly, i think we got somewhere. i think we got somewhere anyway, i appreciate it. thanks, kyle bass. i don't know i'll see you guys tomorrow i am coming in tomorrow. >> we'll see you tomorrow. >> mike, thanks for being here. >> thank you. >> i like that forward shot. make sure you join us. "squawk on the street" is next good monday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber and morgan brennan cramer has the morning off futures improving here to start the week on the heels of david tepper's comments on rates which we'll get to along with reopening headlines and the senate passing stimulus with few

changes, sets the table for a final house vote tomorrow. our road map begins with rising yooeld yields keeping pressure on tech and why david tepper telds cnbc it's not the time to be bearish and gamestop shares, they're up yet again, the retailer, board member, ryan cohen, leading its shift into e-commerce >> and packing america for solar winds. now microsoft exchange servers breached top cyber security stocks tumbling more than 10% in the past month we will talk about that on this busy monday, carl. as we sort of kick around what david tepper has told cnbc this morning, david, there's been a lot of hand wringing over the weekend about what's the threshold for pain for equities? when does it change? rotation into wholesale selling? b of a this morning on "squawk" talking about 175. and if tep ser right, it has big implications for growth. >> it does

and listen, he keeps it pretty simple, temper and he has the advantage of being right many times and we listen closely when he speaks as you well know, carl, and we're doing that in the markets and paying attention, after what has been a tumultuous last few weeks in particular with the growth names that we've been talking about, many down as much as 20% or so but he's saying in talking to joe, you know, a bin nation of stimulus, and low japanese bond yields for example, positive for stocks, and to your point, he thinks that the selling of treasuries may be over, and hence the yields may have hit at least a high for now. >> which is of course the great debate have we sort of hit, that you know, given the velocity of the move we have seen in something like the 10-year treasury yield, have we hit that level, that sort of key level of trading, or selling for now or moving up to 2% especially with the stimulus

package pass in the house and signed into law. that does seem to be the debate. annual also worth noting is looking at the futures board, the major average under pressure poised to open today a bit lower. this has been a great rotation that is under way. cfra had a good note, sort of putting it all into perspective, this morning, that the 10-year note yielded .93%, and 1.54% as of march 4th, since posting the all time high on february 4th, the s&p has fall 27b.4%. and if you dig down and look across the different sectors, consumer discretionary and tech sectors the big winner last year and in the midst of the pandemic, 42%, and have fallen the most since that s&p 500 february 12th peak and it has been some of those weaker names of 2020 that had been some of the strongest or most resilient in the last couple of weeks as well, carl >> yes, it's going to be a great day, guys, to talk to cathie

wood, of course later on this afternoon of closing bell to get her sense as to how this rotation is working out and it will be a big one and obviously responding, agreeing with what tepper was saying, and david, you know, over the weekend, morgan stanley, mike wilson is, i think everybody is sort of where cramer has been the last couple of weeks and i wish jim were here, but the general point being the economy is going to be on fire, q2 growth is going to be huge, i think goldman is at 116789 by the way, goldman year end unemployment forecast now donut to 4.1, so the table is set for a good year, but the rotation is so big, and the portfolios are so out of position, on these new cyclical names, that wilson says, the mdx goes back to the 200-year year-end target 3900 so it's a big boat to turn >> it is, and it's one that we will continue to watch closely, and it's a story that of course is going to play out over these next coming month, the growth target targets as you say are

quite significant, at least at many firms in terms of where they see gdp at, with 19.9 trillion, we're on the precipice, of course the house is going to be and we will get an update from elon shortly on where things stand but very likely as the president indicated that checks are going to go out in the next few weeks, i guess, and we are all going back, or at least the expectation is that there is a return to normalcy occurring at a more rapid pace now. morgan given the prevalence of vaccines, hitting some new numbers in terms of how many people are getting vaccine nated every day, and so take those together, and we come back to this question of, will we have inflation? will yields actually go higher even though mr. tepper says perhaps we've hit a recent high, and what will it mean for these continued growth names that we follow so closely, that of course have been the engine behind so much of the gains that we've seen over the last year or so, or at least let's call it since april of last year. >> yeah, i mean in terms of the

inflation debate, and i realize the fed is very narrow in terms of how they define inflation and what they're tracking. have you been to the grocery store lately my bill has certainly gone up. child care, trying to secure child care lately, it's been higher, freight cost we've been hearing about that with costs in the middle of earnings season and health care and housing and commodities prices, some of the areas we've seen pressure in terms of businesses and in terms of consumers but look no further than the jobs report last week and where we saw the strongest growth within the better than expected numbers, and it isn't things like leisure and hospitality, the hardest hit in the pandemic and as we see states pushing forward with reopening efforts, some states more than others, you're starting to see some jobs come back which gets right to the heart of this inflation discussion, and you houft strong the economic growth could be this year. carl >> no question, with brent at 70, and wti near 68 today, that's the highest going back to 2018, and joining us this

morning, cio, for nuveen global equity division, recognized in 100 most influential women in finance. great to see you congratulations by the way. >> thank you >> so we're having this discussion, obviously, you probably have been listening the last couple of minutes, there was some notice of friday's action, and even with that robust jobs number, at least treasures didn't give a renewed massive wave of selling, do you think directionally, tepper may be right here? >> well, good economic news is actually becoming bad news for investors, and that's what we saw friday payrolls coming in at almost double expectations. yield curve, yields are starting to spike, and that's causing investors to become jittery. what we need is clarity on three key things the first is whether this backup in rates is orderly or disorderly our view is that this is a growth-driven spike in rates and so therefore it's orderly.

we're not seeing the typical things that cause an economy to overheat like a tight labor market. secondly is inflation. we think it's more of a fear than reality because the fed should stay focused on long-term inflation which should stay moderate, even though we do expect to see a spike in short-term inflation. and then finally, what can we do in terms of yield curve control if we need to do it. i think firtly, the fed could communicate more about it, maybe we'll see more of that on the fomc meet ing march 16th and the fed could use the balance sheet in order to influence the shape of the balance curve so once we get more clarity it could reduce volatility for the market and we do agree generally that higher earnings will drive the market higher this year. >> have you been impressed, i know goldman had a note over the weekend, largely constructive based on flows despite all of the worries about rising rates have you at least been encouraged by the degree to

which flows indicate a continued interest in equities >> i would say we've been seeing strong flows into equity since november in active management. not surprised to see it, because in these higher rates, higher inflation environments, equity tends to look more attractive. we do think that that continues. because this move up is going to be more sustainable, and that's one of the reasons, we've been fans of areas such as cyclicals and small caps and emerging markets this year because that's where you're going to get the most bang for the buck in terms of leverage of the global synchronized economic recovery. >> that being said, sara, are there opportunities in tech given the downdraft you've seen, very broadly >> the long term view is on cyclicals and financials and the return of the consumer but given the malaise we've seen in technology, we're starting to see some value there, and investors are going to pay for high quality technology stocks, but less so for premium valuations so a little bit more into an attractive structural growth companies like alphabet and facebook which has more

reasonable valueses. facebook 2.5 billion users and both of these companies are part of the structural trend to more and more digital advertising and we think they're very well positioned going forward and the evaluations don't look as expensive as some of these other technology companies which are selling off because their long duration in a higher rate environment. >> so i guess just talking about this rotation we've seen, and the orderly nature of it is, there anything, and what do you see as the biggest risk for the market right now >> investors get very concerned when yields start to spike quickly. and that's what we saw recently. so as long as it's more of a normal slope upward and the yield curve remains kind of in a more managed fashion, we'll we think we'll be able to handle this and we think there is a short term spike in inflation but as long as this is sort of a broad-based recovery over time, i think investors will be able to handle and we have the

stimulus coming in, another positive for the market and all of this should lead to earnings growth getting stronger and stronger as 2021 goes on. >> earlier, you mentioned the prospects or at least what would happen if the labor market truly got tight. i don't know if goldman is right and whether or not we will end the year at 4.1, it is certainly not in the 3s, but it's getting close. would you describe 4.1 as tight? and what would be the i implications of that >> 4.1 is getting obviously tighter than we are today but what we would be watching for, one of the keys is wage inflation, so it's not just in low unemployment rate, it's how much wage inflation are we seeing and that will start to go through the economy, and lead to higher inflation over time so that is a key indicator that we're keeping an eye on and we're not seeing a lot of wage inflation right now, which is why we're not concerned that inflation is going to become very hot in the near term. >> i do want to get your thoughts on the fact that we have seen the dollar and the dollar index strengthen and

pretty notably just within the next couple of weeks, when you think about investing in cyclicals, how are you thinking about that >> we expect it to be more of a flattish environment from here, we're not expecting a lot of dollar going forward, but that's why we're positive on emerging markets where we think those currenciys can strengthen as the rest of the world comes back, weiswe particularly like those emerging market countries that suffered during the pandemic, latin america, brazil, hit hard, the vaccine is key to recovery, and mexico and u.s. relations should improve from here and actually we still like china, even though they performed quite well during the pandemic, the valuation of chinese companies are not incredibly excessive now, you can find technology stocks in china that are cheener than the u.s. and areas where the consumers will come back to normal like gaming, we like that area in the region >> and given the fact that faang hasn't done a whole heck of a

lot in six months, at least on alphabet and facebook, you think the valuations at this point are just not keeping up with their growth trajectory? >> we think that really the valuations do not reflect the strong structural sustainable growth of both of these companies. they have very strong balance sheets they have so many different areas that they can grow in, for alphabet it's health care, it's self-driving cars, it's advertising, and the cloud, these are all areas that we're very positive on and of course facebook, with its dominant footprint around the world, just because the valuations are not reflecting really the full value of these companies. >> saira, congratulations, great to see you, appreciate you helping us kick off the hour this morning thanks very much. let's take a break here and speaking of faang, some calls to get to this morning including upgrades of salesforce and microsoft and a peloton upgrade in there as well as coke don't go away.

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the senate has passed the $1.9 trillion covid relief package, the ball so to speak is now in the house's court elon moy has the latest for us. >> the house will have a final vote on the covid relief bill tomorrow, putting democrats on track to get it into law before unemployment benefits run out at

the end of this week speaking of the white house, president biden says the $1.9 trillion package will help speed up vaccinations and help hire workers to get shots in arms and as for the dim lus checks that biden campaigned on, they will go out later this month, he said and there are recent polls that show the legislation is popular among the public, including a significant number of republican voters no republican lawmakers have supported it but biden says that he is still hopeful there will be bipartisanship in the years ahead. >> there's a lot of republicans who came very close and got a lot of pressure on them, and i'm still not giving up on getting their support. >> biden will meet with the small business that received a ppp loan later this week,nd''s expected to keep touting this package, even after he signs it into law that is the one of the lessons he learned he said from the financial crisis of 2009, democrats didn't take the time to showcase the benefits of the rescue plan and lost control of the house in the next election cycle. guys shall the administration

will use a covid relief package, it can be both good policy and good politics. back to you. >> just quickly, what do we expect out of the house there, i know the progressives may have been disappointed but the senate version did include an increase in the minimum wage is, that going to pose any issue there, of any concern there >> yeah, for that one, they were sort of able to blame the parliamentarian and the rules of the road here, so while they're upset the minimum wage isn't included, this is not going to derail their support for this package. they put out a statement over the weekend, saying that the size and scope of the package meets the scale of this crisis, and so they still believe that at its core, it is a strong package, and that the changes that were made on the senate side were sort of minor concessions so it does look like this will get the all-clear in the house, and that will pave the way for president biden to sign it. >> i'm really curious about some of these tax credit implications where children are concerned for

families under certain economic thresholds i mean it sounds like there's been a lot put in here that sort of sets the stage and builds the foundation well beyond the pandemic in terms of the types of payments people could reeve for children >> yes, this is really innovative, and actually it is one of the things that progressives point to as one of the big wins in the package, the expansion of the child tax credit and not just increasing the size, and the amount, but also making it refundable on a regular basis. so these would be able to be received by families on a periodic basis, if not monthly basis, and so this is really getting us toward a world where we might see something like a universal basic income, or sort of regular direct payments to people, and that is a real change and difference in the way we look at policy and the way we look at the social safety net. >> thank you, i'm sure we will be talking to you a lot about this, as the week unfolds here. carl, i mean it is pretty

incredible on the one hand, you know, you can make the argument that the democrats got pretty much, almost everything that they were looking for, out of this bill, there's some stuff that's not here, and some stuff that's been altered but not very much it certainly passed basically along party lines and the republicans of course would argue that there's a lot here that, going back to that point just around some of the child tax implications, that are perhaps longer term, and stretch beyond the pandemic, and covid, and i guess it really talks to just how partisan the budget situation continues to be, carl. >> yes, i mean the times trended over the week, has biden betting, betting on the core, betting on helping the economy through the poor, 40 billion in child care, 40 billion in housing assistance, things that

the right would argue have nothing to do with covid relief, i see we ran the front page of that journal editorial this morning, but the editorial program does right, the point is not relief, the point is to expand and solidify the role of government of the guarantor of every american's income unlinked to any obligation to work and that's a far cry from the tax cut we got in '17. >> it certainly is but listen, my question is, what will follow now, right 1.9 trillion now there is a hope that there will be some sort of infrastructure legislation, is there a stomach for it, will you be able to get it passed, as morgan say, a divided senate possibly certainly we know we need it but that will be a key question, i think and the markets will also try to suss out, is there even more coming behind it. >> and how are we going to pay for all of it? es a key question as we look at the equity markets and the

treasury markets, and looking at the near term. countdown to the opening bell, which is just eight minutes away starting to see a turn-around here for the s&p, and dow, both poised to open higher. the nasdaq is poised to open lower again. stay with usad, it's a video ca. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today. it's time to switch to t-mobile. right now, pay zero costs when you do! keep your number and keep your phone -- we'll even pay it off! only at t-mobile. the leader in 5g.

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is out with a survey half of 25 to 34-year-olds plan to spend 50% of the covid relief checks on stocks 18 to 24-year-olds, 40% and 35 to 50-year-olds, still 37% so this is not necessarily a generational thing. >> no, listen, a year ago if i had told you, carl, that there would be this emerging co hort of new investors, retail investors who would power the market higher through the late spring and into the summer and then things would get even crazier in terms of reddit and wall street bets not to mention spacs, i mean we would all said what, millions upon millions of accounts have been open not just of course at robinhood but firms far and wide, and one of the key questions continues to be, will they stay with us? apparently if they get some more

money at least that will help but certainly there had been some losses, lately. we know that, in some of the more speculative names and that is a question at least as to how that cohort will react. >> yes and when we also know the last couple of weeks alone, has been a very volatile market more broadly and the nasdaq, the move on friday alone, the nasdaq 100 sold off 2% in the morning and rallied 4% in the afternoon, but one of those names that of course we have continued to cover so closely, is gamestop, and you're getting news out of that company again this morning, that the chewy co-founder ryan cohen on the board and i think that news sort of helped spark the run-up earlier in the year that he will lead the e-commerce ship there and cohen is seen as one of those leaders, at least at chewy, that was able to counter the rise of amazon, where pet stuff was concerned, so certainly again, another name to watch look at that, up 12% right now

in the pre-market. carl >> at some point, you start to wonder whether there is enough time has passed that they can do the issue of stock that jim cramer has been urging them to do, because at some point this does become the price. we're talking many weeks now at an elevated level. >> yes, david, you're right, i mean issuance has been such an amazing story. it's not over yet, either. i see americans are going to do 2.5 billion of five years, 2.5 billion of eight years and companies will put the bucket out while it's raining there's the opening bell, guys and a look at the s&p 500 at the bottom of the screen interesting on airlines, david, a couple of headlines, one is that southwest is going to be adding some service to new city, again one of those incremental reopening headlines that we're looking at and the airline ceo insider sales, in february, almost 50 million, that's a three-year high, of insider

sales, at airlines, after having had very few in the month prior. so we'll see a lot of interesting timing going on, especially as we watch the insider close. >> that is i saw that same report, i also obviously saw a report from phil lebeau on "squawk box" talking about the hopes at the airlines to get back to break-even. we'll talk more about that but your key one is issuance, it's been equity, it's been debt, and it continues of course, as they have to, obviously make up for what had been significant loss, and put themselves in a position to continue to be able to compete and potentially return to profitability though they have held up perhaps a lot better, and again, we're going to start referring to sort of the anniversary of that period where the markets started to quake, and we all realized this was perhaps more serious than what we had, in the weeks leading up to march. >> march 14th is the date i think about. that was the exodus from new york city at least for many people if they could, in fact leave but we are going to anniversary

so much of this, and at that time, the airlines future certainly did not seem to be parti particularly bright. >> no, i cannot believe it's been a year, what a jam-packed year, but my golly just to put that in perspective and there is a report out of "the wall street journal" and i have a feeling you have been keeping an eye on it, g cap at ge and air cap and when you see what's gonna gone on with the airlines and what's that's going to mean as they emerge and recover from the worst of the air travel implications of this pandemic, imagine it's probably going to be a pretty good time to be an aircraft leasing company, especially a larger one, if you can get that through regulators, if it indeed is something that will move forward, and officially happen, because those airlines, those passenger airlines, perhaps not as much capital on the books to outright buy their aircraft, so the idea of being able to go to one of these companies, is going to be

that much more attractive. >> no doubt. g-crass, 1600, on order, and air cap, somewhat similar, it would create, as you say, a giants, we don't know terms, by the way, i can tell you, i checked in this morning, yes, they are talking, yes, it is ongoing, it doesn't appear they will have something for us today, although we'll see, perhaps tomorrow, but don't have a lot of insight beyond obviously the journal reporting on it. they didn't have any details as you might imagine, it could be a fairly complex transaction when you're putting together these two. but this is one of the units at least that ge kept when it dispatched much of ge capital and unfortunately for shareholders another thing that they kept which they couldn't sell which we thought they sold years earlier the long term care policy that came back to cost the company tens of billions but this has always been a valuable asset and continues to be and we will watch closely, the stock

reacting positively to a potential deal with aercap. >> and it wasn't many years ago that it was a line in the sand, and keep it and considered a cash cow and it countered the insurance liabilities, as well as in the capital unit but it was always considered i think very attractive, especially from like a private equity, for example, standpoint, and an attractive asset, so kind of speaks to the turning tide here, carl, within aerospace, as we do continue to look for these signs of recovery, and there was also an upgrade this morning on spirit aero systems speaking to that expected recovery, in commercial aviation as well. >> yes, ge, leading the s&p, it doesn't happen a lot but when it does, it gets you noticed, at 14 and change here, david, this is going to take you back to basically may of '18 as we continue to look for further signs of strength in afrgs

i see tsa passenger load statistics today, over the weekend you got to go back to january to see numbers that high, and by the way, ge today followed by names like american and ual and southwest, and some retail, too, so the reopening play is fresh, and the tech sell-off to the degree you call it a sell-off, david, apple is the worst performing dow component at the moment. >> although still slightly above $2 trillion in market cap. at least according to my system and i did notice on friday, for a bit, it had fallen below that into the 1.9 trillion level. but to your point, down 10% for the year and facebook also is down about 3.5% netflix down almost 5% for the year for the year but that points to some of the sell-off tesla which we followed so closely, is also down yet again, about 1.5% but its losses now for the year, about 16%, after that incredible move it had during the course of 2020, still at $560 billion market value a

few deals to get to this morning, we're calling it an m&a monday, apollo, not doing much by the way, apollo apo, apollo global management, this is not athea and this is not a health care company or health care related and they already own 35 partly , 35% and already bringing it in one share, one vote, similar to what kkr has done and blackstone has done, and that would certainly seem to be a potential positive for apollo incoming ceo mark rowen, saying it's all about alignment between apollo and athene, among the stockholders and limited partners and you saw some other deal, there are some specifics of it 76.24, they own 35% of it, expect a close a little less than, let's call it 10 months or so from now and you can see apollo not doing much of anything, it is a bit of a premium. and other deal, we told you

coherent, remember, and that's happened, at least the bids came in, and 2.6, they like those roman numerals, not even a spac. but went with the roman numerals ii-vi, and their bid would seem to be, deemed superior which puts lumentum on the clock in choosing to look at it, there it is, with another potential bidder as well but it would appear 2.6 for now is in the, ii ii-vi is in a bidding war. and spacs, we have to keep an eye on them, too. the various families, certainly mr. chamath palihapitiya, continuing to be a focus and

beat up last week as we all know and then centeringly with security, i know you follow virgin closely and the deal that there and we don't know the details but clover 10, million, in filings, virgin galactic, as much as 400 million but i guess he is all out now of that stock, isn't that correct >> his personal stake. his personal stake is all out. he still owns through social capital, and so indirectly, and he did say, in terms of that sale, that $213 million worth of stock sale that took place last week, that that's money that's going to go toward a new significant investment countering climate change nonetheless. i mean just to look at virgin galactic, which is one of those spac name, one of those high-flying names that doesn't actually have commercial operations and really a source of revenue, let alone profits.

including the delay of launch of that commercial service, until next year, at the earliest but again, to your point, it just speaks to what we've seen in pockets of this market that were so high-flying, just a little while ago, getting hit, so much harder than the broader market carl >> yes, we mentioned a couple of other calls, despite the relative underperformance this morning of tech, goldman does take salesforce, by the way, happy birthday, salesforce, founded today, 20-plus years ago, they take salesforce and microsoft to conviction buy. both with targets of 315 peloton is the other interesting one which mkm takes to buy target 130 it did get to 94 as the supply chain issues and the reopening narrative took hold and mgm's broader point is that the supply issue, the big chain issues are getting better as if they will remain some

sticky adherence to the brand, so they're taking that opportunity, but that's the name again, they got into the 170s, i think, back in early january. >> and i always like to look at what their estimate is for full-year revenues and it looks like 4.1 billion for this year, so the stock is trading roughly at 6.7 times estimated revenues for this year, but to your point, carl, it had incredible growth, and the question though, morgan, is will this trade continue as in those that have benefitted so much from the lockdown, going down as we open. >> how great is this so-called move around peloton, and how, and just how much are people going to want to get out of their houses and go to actual gyms as well i think is a key question but the fact that they had some shipping issues and congestion on that front, we've been talking about in terms of what we've seen with spike and freight rates and issues at the port, particularly on the west coast, this is one of those names that i think is ensnarled in all of that, and just to go

back to what we were talking about, with passenger air travel, coming back, so much cargo, flies in the bellies of those types of planes, so as you see more of those aircrafts come back online, i'd expect that is going to help with some of those shipping rates and shipping pickups as well. carl >> real quick, carl, i wanted to jump in and correct something i said apollo has been a c-corp for a while, moving to one share, one vote so i didn't get that correct. i apologize. but they are moving to one share, one vote. blackstone i don't believe is. but i think they're all c-corps at this point. just wanted to clarify that. back to you. >> all right apollo's been busy the last week or two so 10-year, just out to 1.6, a record high on the transports, let's get to bob pisani. hey, bob. >> good morning, guys. happy monday mixed open 3-2 advancing to declining stocks but it's the reopening stocks that are doing a little bit better this morning so just take a look, yields up a little bit, so banks are doing a little bit better, and we're seeing

nice moves up in industrials, and energy, materials, there's your reopening name, tech as you can see here, is flattish, a lot of news over the weekend, about that microsoft email problem, if you're looking for a jump in cyber security, you normally would see this, on that kind of announcement, but you're not today, some of the big names are kind of flattish on the open, so palo alto, fireeye, checkpoint, and modest moves to the upside, and part of the problem is these stocks are suffering from the same valuation concern, all the tech names are suffering from, since interest rates started going up they're not cheap. fireeye, 50 times forward earnings and palo alto, 50, 55 times forward earnings, all of these stocks hit badly when rates started going up, a major issue, a big debate on the street and they're a second phase of interest rate acceleration that is going to happen and you can see where we are in the markets right now, and the reopenings continuing and you heard about the stimulus going through, you

heard about the vaccine, 2021 earnings are increasing, the estimates are increasing, but slower than they were in the fourth quarter, and still going up, and now the battle's over that long end of the yield curve. so we started 1.1, mid february, started moving up very quickly, in the middle of february, february 16th really, and 1.5, and now close to 1.6 essentially, and this has caused tremendous damage to high growth tech stock, the high cash flow expectations, because it lowers the present value of the cash flow stream those companies are throwing off, so the hit to big tech names, we noted all last week, we saw xilinx, pay pal, amd, all more than 20% off of the recent highs and the highs were for the most part, back in february, so in six weeks, we've had quite a correction in the tech space, even apple the big tech leader, 17% off the highs the debate now is what happens if we go to 2% on the 10-year? some feel we could get another 15% to 10%, leg down, it's

debatable, but it certainly would be be good the good news for the owners of the beaten down asset, we've had the cheap stuff, it has become the real comeback winners of the year the losers of last year, are this year's winners and what were the losers last year, energy stocks and bank stock, and the winners this year, energy stocks and bank stocks and what were the big winners last year, the nasdaq 100, consumer staples, consumer discretionary. what are the big losers this year nasdaq 100, consumer staples, and consumer discretionary so this is the classic kind of mean reversion and if you're a jack bogle disciple, the founder of vanguard, he would say this is why you stay in big index funds because if you're very long tech stocks, you're not very happy right now, you're a good 10% off of the recent highs, but wait a minute, if you've just owned the s&p 500, because of the rally, and the other sectors, you're only 3% off. you barely even noticed anything

is moving. and even the dow industrials only down 2% and you saw the transports a record high right now as you heard from carl there's the argument for the ownership of the big index names, when you get mean reversion, you barely move guys, back to you. >> perhaps not so surprising that we're seeing mean reversions to your point bob, thank you. we are on yield watch. as bob just mentioned. right below 1.6% on the 10-year. rick santelli for more ray, rick. >> good morning. indeed, you know, if you considered inflation somewhere between 1.5 and 2%, then 159, 10-year, or a 230, 30-year are right on the cusp of giving you some actual returns, some real yields and maybe that's something to pay extra close attention to everyone today, tepper, big names, that we've had on cnbc, weighing in on rates i will weigh in on one respect never pick tops. never, never pick tops

we're guns hot in the interest rates. the real issue in my opinion is the pick, where we know it crosses over to the upside to accelerate momentum, and where we see correction, is as it moves in the opposite direction but look at intra-day of 10s, a two-day more important, and 162 on friday and 161 today, and so even though we are guns hot, we're hovering, we're not giving up any ground, it is not like a hot knife through butter for higher rates and the ultimate check, open up the chart to early august, the low on the floor was 50 basis points, the all-time high, and a great reason why you should never, never, never use percentages to talk about interest rates so a 10-year note yield at 160 is up 220% 220% the issue continues to be, just like poker we're going to check fort highest bidder and you know who that is, the central bank, the federal reserve, many investors want to see what the fed does, do they increase pfrp purchases? they can but if they do they do really lose a bit more control

and confidence of many investors. that's what we really want to be looking at it's what the fed does how they verbally respond to what rates are doing let's look overseas. here's a chart of boons for a couple of weeks, they were very hot and shot up to minus 20 you see on the left but they kind of gone flat, that is a hint, i think we're in consolidation mode but don't look to give up a huge amount from these levels. finally, let's look at 10s, minus 2s, a five-year high hovering at 144. banks will like that and the dollar index, the surprise over the last couple of weeks, is the rebound, it's now at the best levels, since november carl back to you. >> all right, rick, thank you. rick santelli. still to come this morning, the governor of connecticut who is lifting capacity limits on restaurants and other businesses later this month, while keeping the mask mandate we'll talk to ned lamont in the coming weeks. in the meantime the nasdaq is enjoying the major indices in the green. s&p 500 is almost back to

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the journal today says few broadway professionals are expecting theater shows to return to the great way in summer returning to theaters isn't that easy given that broadway's model, david, kind of only works when they have the ability to play at full capacity. a lot of those theaters are decades and decades old and they don't have perhaps the ventilation that we're looking for in areas of the economy where you could open. >> yeah, they need every seat full, to your point, and they need to full every night to be able to -- and as you probably well know, carl, most shows don't actually turn a profit those that do, and all of them, need every seat filled in this environment, hard to imagine you will be able to do that even if they allow 50% capacity morgan, what people's readiness and willingness is going to be

to pile into an old theater without great ventilation. maybe everybody will wear masks. remains unclear. >> some of the most successful shows have been once that have hinged on those foreign visitors as well, those tourists to the new york area, too but it is interesting to hear that after comments from live nation last week on the yields of earnings, starting to see a recovery also this morning some numbers from eventbrite. we will get into more of that later, carl. >> yeah. still very important to new york's recovery. wl ke break, guys the dow is less than 1% from an all-time high. s&p 500 less than 2% away.

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get the food you love with perks from- - [crowd] grubhub. welcome back it's becoming more crowded on airplanes and the american public is getting ready to start traveling in greater numbers federal fbi phil lebeau has more. >> the summer surge is coming. the airlines stocks have been moving higher. this morning they are up between 1 and 4% part of this is the optimism about what's coming this summer. look at the seat capacity increase for all of these companies. oag, which tracks the number of seats that are on airline

flights, we asked for them to run some data. this is compared to april. in may it will be up 30% then 36% in june, and by july they will have 41% more seats. the doerm airfare is also moving higher they are expecting to fill these seats. the average for the summertime as of right now, according to hopper, which tracks airfares and then projects what they are expected to do, $225 by the way, hopper also says that domestic airfare searches online searches up 58% here's one airline to watch here we're talking about spirit because it's up a substantial amount over the last six months. by the way, carl, spirit is expecting a quick snapback, far quicker than many in the industry were expecting. they are expecting that to start soon, as in april, early to mid-aprilk that's when they are expecting to see people getting back onboard and going places. >> it's remarkable, phil i'm lacking at a goldman report

this morning looking at 60 to 70% of the population immune by q2 or early q3 with europe just a couple of months behind the u.s. and u.k that's goldman's so that leads you to booking a flight. >> exactly. >> we can sew hoe how the pricey begin to move. good morning welcome to "squawk on the street." i'm carl quintanilla with david faber and morgan brennan interesting action a bounce and chop, but that's to be expected after that crazy 3% range on friday. wholesale trade is up. back to santelli >> yes, our january file on wholesale inventories. the mid-month read, which is 1.3, but that now becomes the final because that is the number what is notable about this, and this series of data points goes back to 1992, is that the all-time high is 2.1 the second highest levels are 1.4 from february of '12

that's what this comps does. we know inventories are zooming. it makes sense on the sales side, boy, up almost 5%, up 4.9. we are expecting a number around 1% so that becomes the january number, and that is a biggie sequentially, it follows a revised 1.9, but consider that it takes you all the way back to the all-time high which was june at 9.0 so that's where we basically are comping to, these numbers of the summer of 2020, and indeed interest rates continue to be at some of the firmest levels in 13 months morgan, back to you. >> rick santelli, thank you. we are going to keep an eye on that. to your point, carl, we have seen choppy action this morning with the dow and the s&p the s&p's largely flat the dow is the outperformer, up 0.5% the nasdaq under pressure in terms of the sectors that are in the red, it is tech.

it's also communication services and also energy stocks everything else is in the green. we are now with the gain this morning less than, i believe, 1% from the record high for the dow. just speaking to how much volatility we have seen more broadly the last couple of weeks. >> indeed. and you mentioned the transports, which end up using a lot of energy. oil. that's why wti is going to be in focus. we mentioned earlier we got close to 68 this morning, that was the highest since october of 2018 before settling back. but, david, the gains in oil year to date are almost 40%, and from covering exxon as well as you have so far this year, big implications for how the models evolve. >> yeah, and exxon shares, as you say, although down today slightly, up 47% this year outpacing, by the way, chevron

significantly, although chevron shares are up strongly, in part because of exxon's various moves on different fronts, both capex, opex, esg responding to pressure from some shareholders, morgan but it has been an extraordinary move for both stocks the underperformers last year energy and financials have been the strongest performers thus far as groups this year. >> our next guest joining us now deputy chief investment officer in head of equity, shenay, good morning one of the things in your notes is just the fact that this traditional 660/40 sfplit may not make sense right now. >> if you think about tra dishls 60/40, 60% in stocks, 40% in bonds and the expected return from bonds is lower.

you know, we are seeing market action where yields have been backing up we all know tlats are incredibly low right now. and so really what we mean by that is you are going to need alternatives to help you deliver on some of those returns and so particularly private equity where we have seen stronger returns dive diversify the portfolio. >> all right i want to bring in senior portfolio manager and head of multi-asset strategy over at columbia threadneedle investments. i want to get your thoughts on the market action we are seeing today and, i guess, specifically where you think rates go from here and what that means for equities >> hi, morgan. thanks for having me that's an excellent question on rates. i think that's a question op everyone else's mind, as well. i think for the moment i think we may see a bit of pause given

the speed with which we have seen rates rise, but looking beyond maybe a tactical range for the next few weeks or so, the move for rates, morgan, is up we are facing a massive upgrade to growth for the u.s. this year, and potentially next year also so i don't see rates staying long at -- staying low for too long >> so do you -- i mean, before we -- >> so we - >> go ahead, carl. >> no, morgan, please. >> i was going to say, the comments from david pepper this morning, doesn't sound like you are onboard. sounds like we are going higher? >> in the -- over the next 12 to 18 months, absolutely rates are going higher >> shenay, to the degree that the fed is going to communicate whatever kind of pivot they are

going to make, whether it's yield curve control, whether it's tapering, timing on a rate hike later down the road, do you think that's going to come in the form of minutes, an actual statement, an appearance by powell somewhere i guess we're trying to figure out how they say they are going to communicate it in time. i guess the method now is the larger question. >> it's a great question and it's really important because we've seen how some of the communications in the past, perhaps, have not been as smoothly received as perhaps the fed would want them to be. look, very clearly short end rates are anchored we know that the fed has been very clear about communicating a more symmetrical inflation target we would expect that gradually, and this is very gradually, this is not tomorrow, that you are going to see that start to be

filtered into, we would expect, comments at first. and let's not forget, we get the fed's projections every quarter. to the extent you are seeing a shift in expectations, that's where you will start to see it but we still think that the fed has been very, very clear. the market is looking ahead to inflation and, yes, it will presumably move a little bit higher we think that's transitory and thoelz and those effects will be reasonably short lived all of the things kept low since the financial crisis are in place. demographics, technology change and we are struggling to see what has fundamentally changed there. >> i noticed this morning, morgan stanley cut their view on emerging market and bonds for the second time in a couple of weeks. although we don't talk international as much as we talk

domestic asset classes, i wonder what implications you are seeing from the larger discussion about what em may do over the next, say, several quarter. >> we continue to like emerging markets. we think it has tremendous exposure to global growth. it also helps out with some of the orientation more towards value va value been seeing. investors are pretty smart if global growth is risek they don't want to pay up for growth stocks that's some of the rotation we have been seeing this year but when it comes to emerging markets, they do perform better when you see a weaker dollar if we are seeing rates move up or expectations of rates moving up in the u.s. and we have seen yields back up, that tends to also impact expectations for dollar but our outlook is that the dollar is flat to weaker so it's certainly not the sole driving factor but it gives a nice tailwind to em. >> i want to get your thoughts

on that, given the fact that it has been a pretty dramatic move in recent weeks for the u.s. dollar in terms of strengthening. >> yes, i think dollar view is very key in terms of having the em view. and i think some of the weakness we saw in the dollar last year was pretty much driven by the environment and the rest of the upper class. so, you know, when the march crisis happened last year, markets fell, dollar strengthened as a risk off move and as that risk off period was unwound we saw dollar weaken significantly. but to your point, the dollar has been sort of strong for the last few weeks or so, but as the growth sort of impulse spreads globally, i would expect dollar to weaken again. and i think these next few weeks are an incredible opportunity to

add to e.m erchlts m. equities, they have been pbeaten down the last month or so and we can see very attractive levels for emerging market equities. pretty much we are getting a clean slate to start the year again and we have a bullish view on e.m. equities this year. >> thanks for joining us there. >> thank you very much. well, relief aid, a trillion here, $1.9 trillion there, pretty soon you are talking real money. ylan mui is here to add it up for us in terms. rising cost of those packages. >> let's take a step back and take stock of the sheer magnitude of fiscal support we have seen over this past year. there were five bills signed into law $4 trillion in spending. a new record for red ink now, the biggest line item, $1.47 trillion for loan programs

like the ppe and aid to airlines 673 billion went towards income support. unemployment insurance $472 billion went directly to testing, vaccines, and other measures to fight the virus itself and we sent 4$458 billion directly to the american people in the form of stimulus checks now, together that's helped drive the national debt to surpass the size of the economy. the last time that happened was around world war ii. and if we stay on this track, the debt will be double gdp in 2051 that would blow previous records out of the water that does not even take into account the $1.9 trillion covid relief package working its way through congress when you add that the mix, the pandemic response will total 4.6% of gdp. for comparison, the response to the great recession was just 2.4% of gdp. >> the senate has never spent $2 trillion in a more haphazard way or through a less rigorous

process. voters gave senate democrats the slimmest possible majority voters picked a president who promised unity and bipartisanship democrats' response is to ram through what they call, quote, the most progressive domestic legislation in a generation on a razor-thin majority in both houses >> now, as you can see, the debt is piled up, the political will for spending has dwindled leading to the party line votes we are getting now guys. >> indeed. 2051 is getting a lot of ink today. thank you. after the break, don't miss connecticut governor ned lamont on the state's reopening strategy as we get headlines from new york state, for example, losening restrictions for restaurants outside of new

york city. "squawk on the street" back in a moment keeping your oysters business growing has you swamped. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo - [narrator] grubhub perks give you deals on all the food that makes you boogie. (upbeat music) get the food you love with perks from- - [crowd] grubhub.

corner announcing plans to ease some covid restrictions relating to capacity levels and travel restrictions. connecticut's governor ned lamont joins you now good have you. i think the move that got perhaps the most attention is eliminating capacity limits in restaurants. i know you will have eight-person table capacity. why are you letting restaurants go to 100% now what did you see that gave you the confidence that that won't

result in perhaps more spread of the virus? >> yeah, good morning, carl. we're making that change 100% capacity on march 19th along with stores and houses of worship for a couple of reasons. one, emphasize that which works. masks work six feet of distancing works the difference between 75% and 100% in a restaurant is very difficult to, you know, enforce anyway and we thought, frankly, we have a very low infection riate righ now. plenty of capacity in the hospitals. >> this is the time to make the change. >> it's david, by the way. are you concerned at all that some of the experts, of course, that we follow say, listen, we are still at too high a level in terms of nationwide cases, the u.k. variant is spreading quickly, and we continue to have to be very vigilant even with vaccinations, thankfully, pick pg up greatly. >> yeah, david, our right. we have the vast majority of our population most at risk has now

been vaccinated. that's 65 and above. the majority of the people 55 and above. that's where all the fatalities, that's where 98% of the hospitalizations were taking place. so we feel pretty confident that march 19th is a good date that we can continue reopening. >> governor, this is carl. it's great to see you. i notice that the cdc is going to unveil some of their guidelines for people who have been vaccinated in about 45 minutes. not asking you to front run them, but what are you telling people right now asking you, okay, i have had one or two doses, how is my life different? >> i am going to the uconn basketball game this evening i have had my first shot, my second is in a few days. for people traveling, if you have been vaccinated, no need to kwooep i would urge you to keep wearing the mask a little bit longer

because you will be surrounded by folks not yet vaccinated. good to err on the side of caution. i would like to think by summer we will be back to a new normal. >> meantime, we have the stimulus bill going back to the house, likely vote tomorrow. the president is going to sign it right away. it's got a lot more state and local than the c.a.r.e.s. act which was passed just a couple of months ago. i am wondering, implications for connecticut, and where do you stand on your overall budget stance how much urgency is there things -- is there to do things like, for example, statewide cannabis reform? >> well, first of all, from a budgetary point of view, connecticut's in pretty good shape. almost all of our economy has come back. we have some work to do with the restaurants and hospitality. we have a $3 billion rainy day fund we could weather the storm without having to raise taxes, which is important but this extra funding coming in from the feds is going to be a

big help look, i got a couple of hundred thousand kids who have not been in school for a year our schools have been open this year, but many still did not feel confident or comfortable going back we have to work really hard, and the feds are providing some resources to allow us to have a 12-month school year, after school programs, social workers, everything that allows them to get back in the game. >> yeah. certainly we have seen that impact so much, particularly here in the northeast. i can say from my own personal experience gag back to vaccines, we are starting to see states dedicate allotment to companies to vaccinate their own workers. do you have similar plans? >> no. we don't have plans. we are keeping it simple we are to go it by age as you know, we opened up to 55 and above about a week ago the more complicated and you start picking and choosing companies and picking and choosing essential workers, there is too much gaming going on there. >> governor, it's david again.

i noticed when you referred to getting back to normal, you said the new normal and i wonder, does that represent something different than the old normal for you? what's the world going to look like >> if i could be outside, david, i am going to be outside if i can have a steak dinner, do it outside if i have my druthers i will probably not going to be one to go into a big crowd, not for the near term. maybe life will settle back, but we got to work on that and for schools, like i said, our coschools are open but a thd of the kids don't feel comfortable going back yet we will have to build up their confidence. >> what about the teachers that has been a key potential constraint as well are you at the point where you feel like the teachers are willing to get back into the classroom? as you mentioned, schools are so vitally important, and we have so many students who lost significant amounts of schooling this last year. >> yeah, that's the heartbreak our teachers have been great

the schools have been pretty much open since september. now that the teachers, about half of them have been vaccinated, the rest by the end of this month, they are going to be -- they will be telling the kids, i mess you, where you been let's get back in the classroom. >> governor, i am curious. we have seen such a demographic shift, a great migration, if you will, out of places like new york city in the midst of this pandemic some of those folks have come to places like connecticut. how lasting do you suspect that to be? i guess on the company side, how great is the opportunity to court more business, too >> yeah, lack, i cheer on new york city every day. you're right, we have had tens of thousands of people move out to connecticut i think a small town, little backyards, schools opens, fiscal stability, these are all reasons that people are taking a second look at connecticut. and the businesses are right there next to them. >> governor, always appreciate

you joining us thank you. >> thanks, guys, good to see you. >> you too. time for our "etf spotlight. tick xly, in negative territory. one of the reasons behind the decline, tesla trying to rally but still down more than 15% from a week ago. you can see it's about 1.5% right now. speaking of tesla, later today ark invest's kathy wood on the closing bell at 3:00 p.m. aystn. st with us ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪

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keep your eye on gamestop today. a 15% gain the company tapping east coast founder ryan cohn to chair a new strategy committee on the board to lead the transition to e come tune into cnbc's on the edge edge at 6:00 p.m. eastern time t features sharp opinions, the hottest takes and fierce debates about the big players in news in

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♪ welcome back this here is your cnbc covid update at this hour. u.s. covid death toll is above 525,000, but its growth is slowing. for the first you time since november, fewer than one thousand deaths recorded on sunday and also for the first time the number of people who have received two doses of a covid vaccine, almost 31 million, is greater than the total number of cases. 29 million. bashar al asad and his wife have tested positive for covid the government says that their symptoms are minor. after months of home-schooling, students in

england going back to class today. within the last few minutes, word that new york city's high schools will open in two weeks. in florida, long lines of disappointed people sunday the day before a miami-dade vaccination site had extra doses and vaccinated people not eligible that started rumors anyone could get the shot on sunday, which was not the case you are now up to date david. >> thank you. that's a good place to start. a story we have been following closely for basically a year the idea of a development of an oral anti-viral that would treat covid-19 similarly as tamiflu treats the flu we have been watching the development of a therapeutic from ridge back bio therapeutics which was licensed by merck. phase two trials that looked promising, some of the specifics here, 202 adults were enrolled, had symptoms of covid. within seven days confirmed as

well infection and after day five those that took the now merck licensed drug, they didn't have it any longer but 24% of those received placebos still had the virus it's an important development, of course. this drug is now in phase 3 trials with merck, and we may get an update the end of the quarter from the company perhaps we will look at interim analysis unclear at point it continues to move forward in its development. and perhaps very important here not just the efficacy of it in terms of people who have the virus and being able to quickly eliminate it over a five-day period, but it eliminates the infection as well. in other words, people sometimes don't know they have it or aren't certain and can still spread it. not the case here. it eliminated the infection

completely and the ability to spread any virus as well within five days. that is a big finding. it's my understanding as well the u.s. government is watching this closely, anthony fauci and others, dr. woilliam fischer saying the quicker decrease in virus amongst individuals is promising. we will see how phase 3 trials look with variants out there, with the fact that there is a belief the virus will always be with us in the background, even if, thankfully, we get to vaccination rates that bring some level of herd immunity, variants, changes again in the virus itself, there is an expectation it will always be with us. so the ability to actually have something on hand that will treat the symptoms and eliminate a viral load quickly, carl, is going to be potentially important. it's possible you cosee governments are stockpile this

drug if phase 3 is as promising and receives approvals we have been following this now for almost a year. >> david, i saw you tweeting over the weekend, too, your continued focus on therapeutics because, to your larger point, vaccines are great and we've made incredible progress so far, but variants create uncertainty. you are going to have to keep up with the variants over the years and people will eventually inevitably get sick to some degree we have to have some sort of backup reinforcement for those who wind up either in the hospital or very sick, vaccine or no vaccine. >> exactly and, listen, we don't know how long the vaccine will confirm immunity, as well. that's a key question. will you need boosters unfortunately, we are going to be living with this virus. hopefully, we will live with it in the same way we live with th flu. people get vaccinated. people get the flu thankfully not that many people die from the flu and there is tamiflu which

reduces those symptoms very quickly. >> right if we could get tamiflu for covid, that would be an amazing development. and what's already an incredible year for medical advancement on this disease by the way, guys, it is international women's day. diversity is front of mind for our next guest, nearly 50% of managed assets invested with minority women or persons with disabilities angela miller may the cio of the $12 billion chicago teachers pension fund joins us. welcome. happy international women's day. good to see you. >> good morning. happy international women's day. >> i thought of you the other day because b of a did a report on diversity, 180 pages, and it was just chock-full of findings about, for example, boards that have above-average gender diversity, 15% higher roe, 15% less earnings risk one year out

than their less diverse peers. i thought it's interesting the kinds of investments you have prioritized are getting major institutional measurement now. >> right, it is. it's a change and it speaks to the goals that we have at increasing diversity around women and minorities and how it really helps with the bottom line and helps corporations and organizations really be more profitable and i think they are getting the idea that this is the way that they need to be more diverse and inclusive. >> i'd love to get your macro view on stocks for the year to come, and i wonder if it's a bullish call, if that allows you to and the fund to lean in further to the kind of diversity of investments that you have been putting together. >> yeah, i think the current environment and the rise in

interest rates have really a short-term view and a long-term view from us in the short term, i think along with the approved, almost approved stimulus package and the continued federal reserve support and the reopening of the economy, it speaks to us as an expanded economy and i also think the increasing rates could mean a buying opportunity and create more room for value stocks to do better and to have a more sustained rebound. long term i think if interest rates increase at a steady pace, that investors like myself will be able to adapt and rebalance into investments that yield increased income, but it's really hard to predict but i think, long-term investors like chicago teachers, there is no need to panic, but really to continue with the asset

allocation policy, the strategies that we have been doing, and right now the portfolio is equally balanced between value and growth, an d e ri ri balance back to our targets on a monthly basis so any increase in interest rates or, you know, a shift to a style or a capsize favor really should have minimal impact on the portfolio in the long term it just, for me, rebalancing, it speaks to which stocks i need to -- or which managers i need to trim and which stocks i need to add additional funding to so that's kind of how it helps with me. but i think the message for institutional investors is that now is the time to remember that a diversified portfolio with the disciplined rebalancing strategy is key >> yeah, just to dig into that a

little bit more, angela, along those lines, just all the volatility we have seen, all the gyrations in the market as of late, is that an opportunity is that something you expect to continue is that where you see the opportunities in terms of that strategy and that idea around rebalancing? >> yeah, i think the volatility is going to increase, and we watch it very closely because we are underfunded. so we have to make sure that we are not liquidating at, you know, a down time or, you know, a low point. it really just signals to me where i need to liquidate and what i need to add to, and right now, you know, because we are diversified, i am trimming some of that growth and some of the success that our growth managers have had and as a way to really increase the value stocks and to provide

the cash that we need to really pay our pensioners so i think it's wise for me right now to really just set stakeholder expectations, that we may be in for a bumpy ride, you know, as the economy recovers i think volatility is something that we have to tolerate at various points to really get to a stable market environment. we talk so much about esg investing, angela. we showed a full screen a little bit earlier in this discussion looking at your allocations. how are you -- what is your methodology? how are you applying that in terms of an investment thesis, and as we are seeing more companies come to market in more ways, is there more supply out there for you to choose from >> yeah, i mean, there is so much for us to choose from and i think es fw for us gives

us are the data that we need and the research that we need on not only choosing stocks that have good risk management, but also choosing stocks that will have better returns because of the sustainability and because of the esg measures that they put into place so it is across all of our public stocks, as well as our private markets that we look at esg and we look at what the managers are doing to have a more sustainable organization and more sustainable strategy. so it does increase, you know, what we have to choose from. >> fascinating to hear you talk about it even as we are seeing things like the transports now at an all-time high. angela, great to see you thanks for joining us, see you next time. >> thank you well, carl mentioned it. as we head to break, we are watching the transports today, trading at record highs,

outperforming the broader market pretty significantly, up about 1.7% led by gains in the airlines as the tsa it screened almost 1.3 million people this past weekend shipping and logistics stocks also holding on to solid gains this morning we'll be right back. we'll be right back. stay with us in the romo household we take things to the max oh yeah! honey, you still in bed? yep! bye! that's why we love skechers max cushioning footwear. they've maxed out the cushion for extreme comfort. it's like walking on clouds! big, comfy ones! oh yeah!

. an inflation warning for investors. moody's analytics believes wall street is underestimating the danger as to how fast inflation at trise whhat means for stocks on tradingnation.cnbc.com more "squawk on the street" straight ahead

♪♪ 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? [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ welcome back stocks are mostly positive in trading near session highs at this hour. you can see the s&p up by 30 some points. the gains are being led by consumer discretionary and materials, in the green. focus over here, you see tech and energy among the laggards in trading today. there is notable weakness in the

chip, semiconductor type stocks, including kla corp., skyworks and teradyne as well and apple moving lower again today that stock is down more than 10% over the course of the past month, sennding its market val due to the $2 trillion mark. david faber, to put that in performance, $2 trillion market cap is still double roughly what the entire market cap for the energy sector is right now. >> that does put it in perspective. thank you. well, the market for nfts, or nonfungible tokens, is gaining momentum with jack dorsey the latest to join the craze. robert frank is going to explain what it means. or at least to me. i need to learn about this, robert. >> we all are. it's an arcane new concept new records are broken ever week for nfts jack dorsey entering the fray, offering the first ever

published tweet from 2006. those five words sending out my twitter getting a bid of $5 million from a malaysian crypto entrepreneur. the record was shattered last week when a work by the artist mike wickle man was flipped by the owner for 6.6 million. that record could actually be broken again this week when one his works is auctioned at christi's bidding closes thursday the top bid so far for that under 4 million. the market for nfts are digital works have been assign a token on a block chain, is now over $400 million you've got songs, music videos, memes, tweets of lindsay lohan's face, all becoming nfts and selling for five or six figures. the singer and artist grimes with one video going for

$390,000 and they account for nearly half of the total nft market with king james, lebron james, holding a record for $208,000. guys. >> robert, you know, i did do a little reading over the weekend trying to understand this better one thing that came across is we're talking here again about enormous use of electricity, aren't we, by consumption for this market, obviously, for bitcoin as well. you know, i don't know where this all ends up, but it's an interesting side story of it >> yeah, it is and just the values. we understand the concept, but is this going to be beanie babies 2.0 where it's a speculative play that just bursts, or is this a long-term the new kind of collectible where we were baffled that sneakers became a collectible. could this be the new

collectible? and it's going to be interesting to see what from all this actually survivors the prices can't, but something might endure. >> a really basic question, robert i mean, at a time where we are focused on things like cybersecurity right now and certainly that has been something we talked about where cryptocurrencies are concerned, too, how do you keep an nft safe is it something that is basically, you know, you can hold on to and bring home? is it in the cloud i mean, i realize it's -- i realize there is a blockchain element to this. in general, how do you keep it safe >> look, that is one of the central is questions that i just had going into it, and i haven't seen many answers. we awssume that the signature i secure and permanent we know that everything can be hacked nothing is permanent by the way, who owns that? what happens over 10, 15, 100 years? morgan, that's a question that i

haven't seen a really good answer to. >> robert, thanks for that you know, whether it's the electricity use, david, or sort of the security concerns regarding some of these ntfs, for example, microsoft, you know, which is at the center of pretty large national security concerns right now regarding big-scale tech, the shares not really being affected by it. of course, it got upgraded today at goldman but it's going to draw larger questions than the novelty, perhaps, of the nft itself. >> yeah. listen, when it comes to these hacks, we have to keep a close attention to and perhaps underplay it as a story. we are dealing, and i know jim has been talking about this on "mad money" as well, as you know, carl, with the osolarwinds hack and the implications of it, much of which we still don't fully understand the russians, the chinese, morgan, continue to be very aggressive for various means

the russians seemingly try to -- well, try to screw up our political system the chinese have more typically gone after actual valuable information to help them in developing all sorts of things, whether they be weapons systems or things far beyond that. >> yeah. to your point, i am mentioning weapons systems where a time, fra for example, a big ticket weapon system like f-35 is under intense scrutiny from the defense side, this does raise questions about how much money, how much more money is going to go to something like cybersecurity and this idea of asymmetric warfare i have a feeling we will hear more especially as the biden administration puts together that wish list in terms of future budgets around national security also, carl, we have seen those cybersecurity stocks sell off. they are all down greater than 10% the last couple of weeks going to be interesting to see what we see in terms of moves there as we get more

disclosures. >> yes no question. coming up in the next hour "squawk alley," the man behind a $137,000 sale of an nba top shot moment over the weekend as the dow is less than 100 points from a closing high don't go away.

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welcome back 248 -- that was the total number of spacs i nannounced in 020 over 228 new spacs have already been announced according to analysis by the spac insider and jumping in this ever-crowded field is a blank check ompany. queens gambit growth, the ceo of queen's gambit, the founder partner of vc firm cole's capital, victoria grace. thanks for being with us today >> thanks for having me. >> it is international women's day. i will kick it off with the fact you have this fully female team in place was that something you very intentionally went after and

targeted, and if so, why >> i think we wanted to differentiate ourselves and really have a different value proposition bringing to the market, as you just mentioned. there's a lot of spacs out there. we anticipated the trend to continue and wanted to have a really very different operationally focused public market governance focused experienced female team coming to the market and really delivering different products. >> in terms of what you'll be looking to merge with or strike a deal with, is there a specific area, specific sector or industry you have your eye on? >> yeah, we like complicated things and health care logistics, and the reason is they are very complex and there's a lot of opportunity to innovate and the idea is to partner with market ready market to bring it to the marketplace and add all these other values

because capital is a commodity as everybody is aware and having this strategic and different shaded lens bringing it to the marketplace and to the target on the back end is what we're really after here. >> are we talking about the potential of taking on a business that another company is looking to off load? in general there seem there are so many spacs. every day we talk about them look to go acquire only so many assets in the market right now is there enough for you to decide between is it getting trickier to find that specific takeover target? >> i think for sure it's complicated and competitive. and i like the fact there are so many opportunities out there a lot of companies coming to market one of the reasons, a driver for us to start this vehicle, was simply seeing the quality of companies has been improved

tremendously the last 12 months or so. i think there are a lot of opportunities out there. we have to be selective and focus on companies that are public market ready. there are a lot of deals getting ready. the ones that actually have business in public companies what are we going to go after will be we pretty much are open to any logical and public market ready partnerships complexities do not scare us we actually think having prior experience to spac transaction will give us an edge and able on most important things and how to spac on the back end if a corporate carveout makes sense we will pursue it. >> victoria grace of queens gambit growth capital, a term more people are aware of thanks

to netflix >> thanks for having me. >> as we go to break take a look at the biggest gainers on the nasdaq 100 peloton was leading, up nine earlier. down less than three ross stores, both cisco and toha bn gredad today. "squawk alley" starts in a moment

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good morning it is 8:00 a.m. at microsoft headquarters in redmond, washington it's 11:00 a.m. on wall street "squawk alley" is live ♪ ♪ ♪ ♪ ♪ ♪ happy monday welcome to "squawk alley." i'm jon fortt with carl quintanilla and julia boorstin this