pandemic ad campaign that we told you about last week now i see that string of saliva. i didn't see that last time. that makes it even worse the ceo of suit supply joins us on the controversial images, which we can't forget. and especially when we keep showing them it's tuesday, march 9th, 2021, "squawk box" begins right now. ♪ spread your wings against the sky yeah i believe we can fly now ♪ ♪ spread your wings and fly up high so we can kiss the sky ♪ >> good morning, everybody welcome back to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. just checking things out, guys, having some issues with the prompter right now, but we're going to start with the markets like we always do. let's check things out yesterday was a steep day of declines for the nasdaq. you're going to see it ended

down 2.4%, a decline of 310 points, and this is what everything was about yesterday the nasdaq has seen incredible pressure it's in correction territory, closed down 10% from the february 4th high. and year to date, looking at the nasdaq down by 2.2%. that is in stark contrast to what we have seen with the dow some of the nasdaq stocks that have been hit so hard. tesla down 5.8%. google and netflix down by over 4% if you're looking at the dow, though, the dow closed at a new high yesterday that's pretty significant. it was up over 300 points, a gain of 1% disney was leading the way, and for the year to date, the dow is now up by 3.9% s&p is right in the middle it was down yesterday by about a half percent for the month of march, up by 0.3%, and the s&p up by 1.7% pretty significant this morning, you're seeing green arrows across the board. dow futures up by 165. s&p futures up by 37, and the

nasdaq up by 260 points. that's not quite what it lost yesterday, but it's up by about as much as it was down yesterday at this time also, treasury market, we have been watching that so closely, rising yields, really what had been putting pressure on growth stocks that we have seen to this point. ten-year yield giving background above 1 1/2%, but below where we were sitting at this time yesterday. guys >> yeah. whose bitcoin, oh, someone was supposed to read that. >> the prompter is gone. >> oh, your prompter is again. >> so i'm just kind of doing my own thing. >> bitcoin, that was weird yesterday. dow was surging, nasdaq going down, and we wouldn't be talking about that face licking incident, if it wasn't for you, sorkin, i blame you for that, tweeting it out. we can talk about that today the ten-year was --

>> oh, my gosh, we're all color coordinated today. >> i wear blue at home, and i look yellow. people yesterday said you're turning into donald trump. i said thanks, that's beautiful. i think because i was so orange, but i'm going to have that fixed. i'm going to have that fixed it's a camera chipping thing that needs to be done, and i don't know how to do that. >> white balance. >> i mean, i wear blue you know, germans where gray, you wear blue. that's from casia blanca 153, who knows what's goingto happen with the ten year, but it was 160 yesterday. that was the story that we heard. we'll see. that's definitely not what people think we're supposedly off to the races but we'll see. bitcoin back almost to 55. where was it, 53, 54, something like that. >> now is it not correlated? have you decided it's not

correlated >> didn't it seem like a tesla, nasdaq, you know, lots of money sloshing around, correlation eventually, you know. >> we'll see >> one day does not a trend make. >> eventually it's supposed to go, because of the -- there's an answer to all the money. >> the spending. >> we'll see. >> right >> let's talk about a couple of other stories that are making news right now the big one, the house set to officially consider the senate's version of that 1.9 covid relief bill the vote expected tomorrow democrats in the house are pushing to approve the package in time for president biden to sign it before key unemployment programs are set to expire on sunday meantime, the cdc out with new guidelines, chief among them, some good news vaccinated people can now congregate together indoors without masks but even one year into the pandemic, and with 18% of people in the u.s. with at least one dose of a covid-19 vaccine. so that's the good news.

the cdc still recommending people avoid unnecessary air travel airline industry groups pushing back on that in a statement, airlines for america insisting being on board of a plane poses a low risk of coronavirus infection, because it heavily filtered air and federally mandated mask wearing. so a little bit of good news for those who have gotten the vaccine, and something for the rest of us to aspire to. joe. >> brian, just had a long conversation with ben baldanza about that and it's not just being on the plane. in fact, that might be the secondary motive they don't want us traveling state to state when you go somewhere else, you know, you're out, you go on a vacation for a reason, to go out and go places. i think it's a general sort of, i don't know if they're definitely saying you're more likely in the air on a plane to get it or they're just saying, you know, just don't go out and do as many things and don't go see your grandparents. that's sort of part of it. frontier airlines is making a

second attempt now to go public. it's a budget airline owned by private equity firm indigo partners, filed for an ipo company had dropped previous plans for an ipo last summer it initially filed way back in 2017 in the old days in the old normal. and booking holding ceo, warning travelers, make your reservations now before prices go up. we'll see. it's inevitable, but maybe talking booking holdings glen fogle points out that most airlines have dropped cancellation fees. there's no harm in cancelling a reservation. so please, please, book something, even if you're not going. >> i mean, the juxtaposition of what you just read, joe, sounds like just about everything >> i feel bad. the cdc actually saying, you know, an entire industry, they're like, what, you know, we're relaxingthings, but do

not fly, and they're like we have been waiting, but yeah. >> what's warren buffet, the great line, don't ask your barber if you need a haircut so the ceo of bookings telling you to go book a trip. >> every person we have had on that's in the real estate industry, every person we've ever had on, we have talked about that in the past, in real estate, oh, my god, it's the greatest time to buy or sell >> great market. >> it's a really good time to buy but it's even a better time to sell, i have noticed with most of my people, anyway, coming up, anyhow, any who, coming up, we will talk rising interest rates, a selloff in tech, and where to invest now. j.p. morgan joins us heading to break, here's cathie wood on closing bell yesterday, talking about the impact of rising interest rates on the market ♪ knock on wood ♪ >> we don't think that is why

the market is correcting here. we do think the speed of the increase in interest rates is scaring people it became very comfortable in a low interest rate environment, nothing much changing, the fed has our back and so forth. ♪ knock on wood ♪ this cnbc program is sponsored by truist financial. no one likes to choose between safe or sporty. modern or reliable. we want both - we want a hybrid. so do banks.

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senator the frustration has been enormous across this nation. >> we want to give the viewer as much access to the levers of power as we can. >> have you talked to the governor and can he explain this >> we're committed to seek the truth, find the truth, and

welcome back, u.s. equity futures are higher across the board, and they're all, you know, on the same page, today, at least at one point yesterday, the dow was up 650 points. only gave back 200 after when it did hit an intraday high, all time high yesterday. but the nasdaq was sharply lower. remember that big reversal on friday resumed selling yesterday, and had a tough session down more than 2%. it's up today. but tech stocks continue to be hit hard that was a gain the nasdaq saw last year. the nasdaq down again, falling into correction territory. tesla, apple, alphabet, and netflix, each lost 4%. our next guest says we're in the danger period for fixed income, and investors need to reposition their portfolio for the year of the vaccine. joining us is gabriella santos, global market strategist at j.p. morgan asset management. gabriella, do you have an

overall year end target for the s&p just in general? are you surprised that it's continued to hit higher? >> so i think thwhat's interestg is this definitely not the year to be looking at the index as a whole. we think there will be a mid single digit positive year for an index like the s&p 500, but really the action is definitely beneath the surface, as you see last year's big winner sell off for investors to rotate into the more cyclical aspects of the market, and i know that people like me have been coming on the show and talking about this rotation for months now, but the aggressiveness of the rotation we have been seeing over the past few weeks, so just that it was a lot of talk and not a lot of action, and we're now seeing this action unfold i think the big danger for investors for this year is leaving portfolios positioned the way they were last year. that is not the way to actually benefit from the surge in economic and earnings growth we

expect this year we have got to continue seeing that rotation unfold in portfolios >> you do expect rates to normalize to 3%. however, this year, you're talking about at the end of the year on the ten-year being between 1 3/4 and 2%, so it's -- what month is it is it march? i think it's march. >> i think it's early march. >> early march march comes in like a lion we'll see. but if we go 1 3/4 to 2 in an orderly way over the next nine months, will that be seen as orderly, and will that be digestible by the stock market that seems okay. that doesn't seem like it would certainly, the pace of what we have seen so far, would have to slow to only end up between 1 3/4 and 2% >> yes, i think we would have to take a bit of a pause for a few

months before we continue moving higher to that 1 3/4 to 2% that we mentioned and then continue to move higher throughout 2022 to get to that 3% normal rate for the ten-year. and i do think absolutely that slow normalization would be well absorbed by risk assets because it's a sign that things are getting better we came into this year with a ten-year below 1%. that was not a good thing. that meant we had issues with nominal growth that meant policy was extremely accommodative for a reason normalization can be good but not necessarily for all parts of the market equally that really big focus from rotating from the growthy, expensive sectors into cyclicals, and a really tough moment for fixed income. i think that's really where we should devote a lot of attention in portfolios, to making sure

that we're not overly exposed to this interest rate risk, so that's shortening duration below five years, and that's focusing on extended credit like high yields and emerging market debt over investment grade. really fixed incomes werhere a t of pain has started and continues to be felt. >> small caps, international, overweight more on both of those as well. that's not necessarily the same as last year either. it has been pointed out, guys, like jim paulson, and heard from other people that a lot of times during a period of rising interest rates, stocks do well, at least back to 3% as the normalized level that you saw because when rates are head hd up a lot of times it's means good economic activity, even though we're in a danger zone for fixed income, it's not necessarily a bad thing for stocks, it's the pace once again that we're talking about. >> the pace, the reason and the part of the market as well so it can be a good thing for

your more cyclical parts of the market and i think one of the points we make is we're coming into this year with a much better outlook but with stretched valuations. so returns this year are really going to come from the change in earnings and it's really the cyclical parts of the market that will see the biggest delta in earnings this year versus last year those are the kind of sectors that can absorb rising yields, that can really tap into this improvement and the economy. so just an example, financials k we we'll see a 40% change in earning. consumer discretionary, 70 percentage points. if we look at health care, only 2 percentage points. tech, only 10% so that's the reason why these rising bond yields, related to rising growth benefit these more cyclical parts of the market, and we continue to expect that to happen. it's by no means done just because it's been happening for a few weeks here. >> can you pick out winners and losers in tech will the reopening tech stocks

out perform the ones that did so well last year, based on flourishing during the pandemic? >> yeah, absolutely, and i think one of the big things for this year is broadening out of the recovery, speaking of the economy and the market within tech, if we remember last year, it wasn't tech broadly that did well. it was really just the largest mega cap tech stocks for this year, if we want to play the tech theme, we do have to broaden out the tech exposure, and remembering that tech is a lot more than just those large companies, tech can encompass themes like digital payments it can encompass cyclical parts like semiconductors, so it's a much broader theme than just the largest companies, and that's why we're seeing the biggest pain in your faang plus type of companies because they were the very specific part within the market, within tech, that did well, and that now is readjusting their valuation as a

broader rotation takes place we don't think that's quite done yet. >> does the washington backdrop, whether it's the latest stimulus bill or the possibility of a large infrastructure bill, does any of that, are you assuming any of those things, or you just don't even try to figure those out in d.c.? >> i think we can pretty safely assume something about the current rescue plan. so we do think, you know, by the end of this week, we'll have something passed close to that $1.9 trillion. and one important thing to note about that is that a lot of that fiscal aid is very front loaded. and we estimate that about 1.2 trillion is going to feed through just in the next seven months so that's a lot of fiscal support for the economy just in the next seven months on top of what we expect to be a surge in vaccinations where we can potentially reach a herd immunity threshold over the next 90 days, and combined with an

economy that's actually entering this year, much more resilient than we expected, so we had a good idea, a good estimate for growth this years ago but we have only gotten positive surprises, and we think the risk is tilted to the upside, and that is why you're seeing such a violent reaction in bond yields and in this rotation towards cyclicals as well. >> all right gabriella santos, global market strategist you got to be everywhere at j.p. morgan. >> got to be everywhere, got to know everything about everything. >> you do. and we appreciate it thank you, andrew, i'm going to toss it over to you. the stimulus checks are coming, andrew, gabriella didn't say it, but obviously buy some gamestop, if the stimulus checks are coming, that's where it's headed did you see where it ended yesterday? >> i saw i saw. >> it's almost 200 almost back to 200 200. >> do you believe in unicorns?

>> what's that >> i said, do you believe in unicorns >> they're extinct, aren't they? i mean, i don't know i don't know is that like the woolly mammoth? >> that might be like gamestop right about now. >> get it today, 221 221. >> i see it. i see it >> wow >> in the meantime, we'll talk about gamestop in just a little bit. we've got a big lineup to talk about reopening as well today. the impact on stocks and the rising interest rates, including commissioner of the pga tour is going to join us, also shark tank's kevin o'leary, and tohoma peterffy is joining us tune into cnbc's "on the edge" about sharp opinions, the hottest takes and fierce debates about the biggest players in news in the business world we're right back after this. dathlitbwod wrong in the rl toy e ghulb is getting dim ♪

♪ there's melt down in the sky ♪ this cnbc program is sponsored by baird, visit bairddifference.com.

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the dow's record roll, the market's message, and strategies for investors at the opening bell "squawk on the street" today 9:00 a.m. eastern. watch or listen live on the cnbc app. welcome back, everybody. right now it's time for the executive edge, and we have new sur survey data from cnbc about women at work. a drop off from women that describe themselves as very ambitious, from 54% a year ago to 42% now that dropoff was sharper when you look at black women and hispanic women who say they are very ambitious white women are the least likely to use that description. white women prepandemic, 46% were saying that, now 38%. a much bigger drop off for black women and hispanic women

65% of the women surveyed said that the pandemic has made things worse for women in the workplace. when we come back, we're going to show you the next round of highly shorted stocks being targeted by reddit traders, like this company, take a look at this chart, up more than 120% year to date you're going to be surprised by this because i was we'll reveal the name of the company after the break. right now, though, here's a look at yesterday's s&p 500's winners and losers hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this...

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♪ don't believe me just watch ♪ >> good morning, my own little bug, u.s. equity futures, the dow up 200 nasdaq, we checked, up 294,

ten-year, 152. bitcoin, 54,000, and one more, gamestop, we're going to talk about that actually right now. we're watching the shares, though, not only of gamestop, but discovery. discovery is what you were talking about, becky, discovery and amc networks which are finding themselves to be the latest darlings. >> can you believe that? >> yeah, i guess it's a darling. they're doing something with it. >> of the reddit investors i mean, that's what shocked me reddit investors are not just looking at -- i'm not sure why they got attracted to this company. the stock is up 120% year to date, over the last couple of months since they launched discovery plus it used to be companies that you thought of like on life support that they would go and try and prop up. these are companies like discovery. you've got rocket companies that they're now going after and profiting. that they're now attracted to

and bidding up those companies, and it just, it boggles the mind, you know, it could be just about any company at this point. >> it could, and we talked about amc before, i guess there's a different reason amc networks for a while, they thought some people were confusing it with the theater chain, but not necessarily, but i think it is kind of appropriate that one of the most famous shows is "the walking dead." >> ta lot of people thought that's what these stocks were, and they're not. the dead can come back to life, if you have seen any of that long running great show that's been on. it kind of for me, jumped the sharks, but we still watch it in my house amc and discovery, and gamestop up another 20 something points a day. i'm going to do my own little bug. the dow, nasdaq, ten-year, bitcoin, and gamestop. that's just, you know, and then we can just move on to whatever else we want to do after we

cover those most important data points. >> right how far we have come from when alan greenspan told us we should be putting the ten-year up more frequently that's the number he cared about. >> it was boring for two years now it's back. >> now it matters. >> also ryan cohen -- >> what happened to major biden? >> i'm sorry. >> major biden did you guys see this? i'm sorry, you guys, major biden got sent home. major biden got sent home to delaware he was too aggressive at the white house. >> oh, the dog >> oh, the dog. >> the dog got sent home. >> he's such a pretty dog. >> i love both of those german shepherds, they're my favorite bidens, i love them both well, i like all bidens. >> you like your dogs better than people. >> no doubt. >> my male dog in a public setting, no, no, there might be,

yeah, i can see how that might be, i can't even imagine, but, yeah, sent home. that's trending on twitter sorry, go ahead. >> i understand. you've been following that story closely. we should mention, ryan cohen is back in the spotlight this week after gamestop naming him to lead the company's ecommerce transformation that stock rallied 40% yesterday, and it's up again this morning joining is sarah needleman, a reporter at the "wall street journal," and nigel. >> sarah, i'll start with you. this seems like an impossible task, the idea that you would take a company that we were kind of writing off as block buster and that it would be able to transform itself into netflix, but when you have ryan cohen involved, and by the way, he's put his money where his mouth is i think he owns 13% of the company now, people are starting to say, is this possible, what do you think >> well, ryan is the person

behind chewy, the online pet retailers that was a pretty successful company that he built up and sold. and he has a vision that people, at least some people think could work, and certainly it makes sense that he wants to take this company and modernize it by making it more tech centric than the bricks and mortar centrics model. it's the past three or four decades. >> nigel, this is no small task, though, the idea of doing something like this, when you already have so many big players. let's say the console makers like microsoft and sony, that are so directly involved in downloading games at this point. you have mobile games that are out there, and day take up about, even though the apps are free people spend money to get some of the digital tokens that they have that takes up half of all spending on gaming what's left? it seems like this is a pretty tough up hill slog. >> i think when you think about gaming, becky, we're just at the

infancy of where gaming is going. most gaming that comes from individual companies are restricted through our platforms. what gamestop allows gamers to do is look across gaming companies. they've got audiences that play play station, xbox, all of these different games, and when you think about where we are, we're at the infancy of a market that's about to start to get into digital content, real community experiences, picking up in a big way. streaming services so my thing about digital transformations is they are a little bit like an iceberg. what the customer sees is important, and what you have to do underneath that organization to kind of prop up the bit that's above the surface is critical, and what i think ryan and the team at gamestop are doing are saying we've got a long way to go to fix the basics if we can get things like ecommerce working for us if we can get collect instore, if we can get communities going, more digital content, engagement, certainly a long way to go. i definitely think there's a lot of room for them to grow, from where they have been and are today.

>> nigel, that's a whole lot of ifs, and when you say they have this customer, how many customers do they actually have, and how tight of a hold do they have on them >> i think you can look at, you know, i'd say, you know, not justifying necessarily what the stock is doing, but just thinking about the strategy of the company more broadly, as you have said, they built businesses like chewy, this team, and they understand that while the economic mode is what you tend to focus on, right, which is effectively the famous buffet principle of all of the traditional sources of value, my sense is now, if a business can actually start to figure out how to focus on the experience really bring some engineering capability, get new products, and services out there, use data to iterate on the business there's no reason why a disney, who many people have written off, can't rival a netflix that is the journey they're on there's a long road, and lots of ifs, but certainly something that i think is a viable

proposition. >> hey, sarah, when you look at this, i mean, honestly this is something i would have laughed about three weeks ago. maybe it makes a little more sense now, but you talk to a lot of people about this, what's your take on it all? >> the video game industry has been growing by leaps and bounds for the past several years, and certainly the pandemic has given a major lift and so the publishers are doing quite well, but there are a lot of ifs because this is the digital download market is well established by the console makers and even on the pc side, you have services like steam that are really entrenched and have been around a long time it is quite the uphill battle, despite the fact that this is a massive and growing industry i think that gamestop, e sports is one avenue they could use because they have a large retail footprint, and they could potentially do some sort of a little league type situation in

their storage, but of course the pandemic has made that very very difficult. if the pandemic wasn't a factor, we might be having a different conversation about taking advantage of the retail space, and so i think the ifs are big ifs, and it will take a lot of time, and capital for the company to even have a shot at competing with all of these entrenched players but mr. cohen, of all people is probably one of the best ones out there to take on this task he certainly has the passion for it, and he has the financial incentive for it but it will take time, i don't think we're going to see a change overnight, certainly not as fast as the way the stock has been moving. >> right, so anigel, let's look at the market value, right now it's a $13 billion company what do you think actually is a realistic value for the company could be even in success, and let's say, and success being let's say two years out from

now. even three years out from now. >> i think that, you know, i think all of you from a financial prerspective are probably much better to pine on the value of the company when i look at the up side that they're playing for, certainly the valuation has led that pretty significantly as i think we have been talking about over the course of this conversation. the orientation i'm looking at this from is where is this business today, and what kind of up side do they actually have in terms of moving the needing from where they are to where they could be and frankly, we have seen a lot of stocks out there, and we can name a bunch that you all were just talking about earlier in the show that have all, you know, had their stock prices leave significantly the actual performance of the business, right, i mean, you know, just looking at the last year of tesla being the most kind of obvious example of that, right, and i wouldn't say that, you know, we're comparing game stop to any of those, when i look at what the business strategy is, what they're talking about, what they haven't been doing so long, and what

they're going to focus on now, i feel like the case for a significantside as they continue to execute and build up their strategy is definitely there. >> uh-huh. nigel, sarah, i want to thank you both for joining us today. appreciate your time. >> thank you great to be on. >> thanks. coming up, more on the gamestop trade in the 8:00 hour. interactive brokers chairman thomas peterffy will join us to talk about the rise of the retail traders. >> and checking the stack, oh, my stack we made one. look at that that's all you need to know. joe's stack. with the dow and add the nasdaq in can we add one more. >> put oil in too. add two more oil and the nasdaq >> i don't want it to be about me ever. anything >> never >> so maybe we ought to do the "squawk" stack but that's a little bit harder to say anyway, there is a stack "squawk

box. it's cool. we'll be right back. today's big number, 50%. that's how many people age 25 to 34 plan to spend half of their stimulus payments on stocks, according to a survey by deutsche bank. overall, that could prent reesan inflow into the market of $170 billion

♪ if you want to destroy my sweater ♪ ♪ pull this thread as i walk away ♪ ♪ hey what's up i don't know ♪ >> some stocks to watch this morning for you, stitch fix is plunging shares at the revenue, or revenue i should say at the subscription styling service fell short of what the street was expecting, and the company disappointing investors by lowering its current quarter and sales forecast it blamed shipping delays and longer purchase cycles customers have been spending less, making purchases less frequently because where are you going. that stock is off by 24% this morning. up next, del taco, posting better than expected earnings and revenue.

shares rup on the news, up 25% for the year, this morning up 3.2% we're watching shares of peloton, after you eat all of those tacos, you better do something about it to work out the company announcing it's launching the bikes and the digital app in australia during the second half of 2021. this will mark the current expansion beyond the current markets in the united states, u.k., canada and germany, and those shares are up by about 3.6% finally, check out shares of invitae, not a household name but maybe one you should know. that stock is rising after ark's cathie wood says she remains bullish on that stock calling it quote probably one of the most important companies in the genomics revolution. that stock is up 8%. it's been a year since the w.h.o. declared covid-19 a pandemic, and the selloff stocks came roaring back. we're going to take a look at

the banks all up sharply first, we talked last week about suit supply going viral, looking to capitalize on pandemic fatigue. we're going to talk to the company's ceo about the controversial campaign, and what comes nextrit teth , ghafr is ♪ your kiss i can't resist ♪

welcome back to "squawk," we have new numbers on how americans feel about the pandemic and reopening, exclusive cnbc poll asked people if it's safe to start reopening. 15% said very safe 39% said somewhat safe 32% said not very safe and 14% said not safe at all when asked if people returned to a normal routine after the

pan pandemic, 21% said yes 32% said mostly, 35% said no, and 12% said they don't know we're going to talk about a new ad campaign, visioning life in post pandemic, it went viral for graphic images the retailer behind the ad

i do think and hope we're going to get into the roaring 20s. this is a little bit of a metaphor of the pent up energy that we're feeling you've had people on one end say sign me up was this what kissing supposed to be? has it actually impacted the

business? >> sending outs a message. we're all in this together i think that will extend out more than it would otherwise have. >> tell us, everybody wants to know about the photo shoot did you have to get the models tested how do they agree to do this there's a lot of drool involved here. >> robin, our main model, the

male model, was actually shooting with us in amsterdam. his girlfriend was in new york so we arranged for them to get back together and get the quarantine this is what it looked like when they came back together. it's not staged. this is real >> so the females though -- i should tell you the females in my life are upset about one thing. you guys sell suits for women and they want to know why the female models are not wearing suits. >> during the pandemic, we stopped selling suits for women. we're focusing on men's clothing only. >> you're out of the suit business for women going

forward? >> you're making a portion we're a private company although we're all over the world, we have to make some choices going forward of where we want to be in and so this is a moment where you have to focus. >> can i ask you about what you think we're all going to wear when this is over? you're wearing a blazer and a tirdle neck. i'm wearing what i've always worn but here we are on tv some people say people are going to wear sneakers and people are going to do what's called peacocking once everybody gets out everybody is going to dress up to the 9s. >> what we're seeing now, this is -- because when we went into this pandemic, obviously it

scared us. there was talk about we're not going to go back to the office everybody is going to live a whole digital life having gone and they are extremely important. we quickly saw in china, we're in korea and australia all over europe.

that's what happened that's cool. i mean, it happens -- i have two german shepherds and it happens. they haven't seen me in a while and that's the first thing that happens, the male and the female, in fact. i didn't know that that was -- i don't know i'm too tame, i think. i have to talk to my wife. >> get back to that. >> i've been vaccinated. that's not the problem that's not the problem. >> thank you we appreciate it thank you for your fashion advice >> thanks. >> becks >> okay. when we come back, the house expected to pass president biden's covid relief bill this week we're going to take a closer look at how effective the stimulus will be that's next. plus, don't miss our exclusive interview pga tour commissioner jay monahan on the return of sports, tiger woods recovery and mh reucmo

"squawk box" will be right back.

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the house preparing to pass the $1.9 trillion relief in spending bill.

we'll debate the impact it could have on the economy straight ahead. david tepper believes rising rates are set to stabilize fund guru and grant's interest rate observer. jim grant will join us with his take on where things could be headed. dick's sporting goods. the number and the other movers on the early session all coming up as the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures. we can show you the joe board. we're showing you fair value, but dow looks like it will open up 183 points higher, nasdaq up about 280. s&p 500 up as well this is what's important to

squawk we're calling the squawk stack joe board to squawk stack. the important numbers to know. bitcoin at 54,000. 10-year note of 1.53 everything you'd need to know. gamestop at $219 look at that >> you remember the sorkin fair value screen that we used to use. >> i do. we do it every day now we have the squawk stack this is good. >> i like the squawk stack i don't want to take credit and blow my own horn, so to speak, but i like that. >> never blow your own -- >> no, i would never -- no no andrew, glad you like it glad you like it. >> i love that board i still ten years later love the implied open that we do the math for and for the viewer and me.

it's helpful >> get out of here meantime, a couple of big headlines to tell you about this hour plenty of stocks to keep an eye on this morning with the stock -- with the markets i should say poised to bounce back one of them is tesla take a look at what's going on here it was down more than 20% from the recent all-time high tesla has declined from the 20% high subsequently rebounded that stock up 4.5% this morning. meme stocks are on our watch list one relatively new entry to that, discovery communications it's one of the most heavily shorted stocks it's currently riding a 7-day win streak it's higher in premarket training as well wonder what david zaslov thinks

of that. new covid-19 bill could cause problems for the irs the problem is it applies to many who have already filed their 2020 returns, meaning the irs could be in for a flood of amended returns. becky? >> oh, boy yeah they don't have enough to do wow. all right. the house plans to pass that $1.9 trillion covid relief bill this week. the president is expected to sign it before programs expire this sunday. programs that this bill would extend ylan mui joins us now with more on that front. good morning, ylan. >> reporter: good morning, becky. the timing of the final vote is still up in the air. the house had intended to vote today but i'm told that the chamber is still waiting on paper work from the senate the official schedule says consideration of the bill is possible and the timing for when the last votes today might occur is literally still a question

mark democrats are up against the clock for two reasons. first, they want the bill signed into law this week so there's no laps in unemployment benefits. they also want to make sure that the stimulus checks get out the door as quickly as possible. >> two weeks, approximately two weeks these checks will arrive not months not years. not wait for your tax returns back next january. right away >> reporter: the treasury department is responsible for overseeing that process. the white house says secretary janet yellen is focused like a laser on the checks but the administration is weary of setting a specific target at this stage the last round of checks got delayed because many of them were deposited into the wrong bank accounts so the white house has only promised that a large number of people will have checks in hand by the end of the month. guys >> ylan, what happened to the checks that went into the wrong people's accounts? they thought they had the money and then they said, oops, never

mind, took it back >> reporter: yeah. what happened was that people who used a tax filing service like say a turbo tax or something like that, there were sort of passthrough bank accounts that they had used in previous years in order to receive their refund the irs had that on file and they accidentally sent that to those accounts instead of the bank accounts they were using as their day-to-day checking account. that's one of the sort of dangers of moving too fast in this process as you were just mentioning around the issue of making some of the unemployment benefits tax free, this is going to be an incredibly complicated process for the irs. that's also why some lawmakers have been calling on the irs to extend the tax filing deadline currently the tax department and the irs are not looking to do that that is something that is gaining a lot of traction on capitol hill. >> and then the importance of this getting signed this week, if those programs that this is meant to extend, some of those unemployment benefits, if that

program expires and this doesn't get signed this week, how difficult is it to restart that? is it as easy as flipping a switch are we talking about something that will then take weeks to went its way to get restarted? >> it depends how long the benefits will last for i think it's likely to be a couple of days if that is the case, but for the people who are waiting for those checks and want to make sure that they get that extra $300 a week, that could be a very big deal >> ylan, thanks. we'll talk to you soon focus may be on covid vaccines, but antivirals are also showing a lot of promise. meg tirrell has more on what could potentially be a new tool to fight the virus hey, meg >> reporter: hey, joe. the progress we've made on medicines over the last year for this pandemic has been pretty remarkable as you mentioned, of course, we have vaccines in the prevention setting. three now authorized in the u.s.

in the early setting we have monoclonal antibodies from regeneron and eli lilly. in the later stage of the disease we have drugs from gilead, regeneron and dexamethasone. we talked with matthew hall about what they can do that other drugs like antibodies can't. here's what he said. >> small lmolecules, we can take as a pill. they can get inside cells. they can get to a target no matter where they are in the body and shorten, hopefully, the period of infection and decrease the symptoms and prevent things like hospitalizations. >> reporter: and there are a few of these in clinical trial already. the most advanced is from merck. it licensed a drug from ridgeback. we're expecting late stage trial results perhaps by the end of

the month. that's a pill you take for five days and see if it can prevent hospitalization. there's a similar drug from atea partnered with roche pfizer has an oral antiviral expecting to start phase 1 soon. we talked with dr. fauci he said they have high hopes and they are working on this at naid here's what he said. >> it took years to develop a combination of antiretroviral drugs to really totally transform the lives of persons living with hiv. we did the same thing a lot of input from pharmaceutical companies that did the same thing with hepatitis c right now we are putting a major effort in getting such a program going. hopefully we'll get lucky and get a hit right on >> reporter: so, guys, the hope, of course, is that you get a positive test, your doctor could prescribe you one of these

things, you take a pill for five days and it helps you, but it's taken a little longer to get there. joe? >> that would be -- that would be great i wonder what they're focusing on, meg? just the -- what part of the viral life they're trying to disrupt. i just wondered, it may not be the spike protein in this case probably something totally different. it's hard for me to figure the hiv stuff, too that's such a complex mode, the life of hiv the way it -- the way it's able to go into your genome the way that works, this seems a lot different. do you know what they're trying to disrupt in terms of the viral machinery? >> reporter: yeah. so the first two we talked about from merck and from atea are polymerase inhibitors. pfizer is working on protease

and they're working on copying themselves it's interesting the comparisons with hiv there and hepatitis c, we've seen combination therapy has conquered that matthew hall from nih saying that could be the key here as well once we've identified a number of these drugs, watching the companies work together and put the drugs together could make a big difference. >> i think one of the cocktails in hiv is a protease inhibitor too. i can't remember the -- there's three moides that all work together for that cocktail, right? do you remember? >> reporter: i know that protease inhibitors and po polymners are one of them and thank you for bringing that to us on the one-year anniversary of the w.h.o. declaring the pandemic cnbc looks at what has been done

and we speak to dr. luc luciana borino and dr. scott gottleib about the year that was, exploring where we are as an immu nighted nation and how the threat of covid is evolving and the healthy returns live stream tomorrow. visit c cnbcevents.com/healthyreturn live when we come back, the reopening of america the return of sports will change in the coming months we'll speak to the pga commissioner and get a preview of this month's players championship tournament. before we head to break, let's get a check on markets take a look at where things stand. the dow up 175 points. open up now, s&p 500 looks to open 45 points higher and the nasdaq 275 points higher we're back after this.

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players championship going to be called the all-star weekend of golf kicks off this thursday in florida. it was just one year ago that the pga tour commissioner canceled all golfing events due

to the pandemic. golf was one of the last to shut down and one of the first to start back up. we're joined by jay monahan, commissioner of the pga tour commissioner, thanks for joining us this morning. >> thanks for having me, joe good morning >> good morning. let's start with tiger obviously front and center for a lot of people. kb golf fans around the world >> yes what do you know >> well, you know, i've been in communication with tiger and i've stayed close to many members of his team. like so many others, you know, we're just praying for his recovery and we're just so grateful for the fact that he's on the road to recovery. and, you know, that's the thing that is -- that's the most important thing. that's the only thing at this point in time. hopefully we're going to continue to hear about more and more progress, but i also think

that, you know, for him, he wants everybody to know, all of our players, all of our staff, the sports world at large, the world at large that the outpouring of love and support has meant an awful lot to him and has been so important as he recovers from his injuries. >> he has said he plans on playing again. we all just went -- i don't know if we're beyond the point not just worrying that he's healthy for his kids and his life and everything else, can we start talking about the type of injuries and whether he can have that tiger-type swing? can he heal to that point, you know, the angle kle injury or se others >> joe, i think his health -- his recovery is the entire focus right now. when he wants to talk about it and he's ready to talk about it, i'm sure he will for us, making sure he feels that love and that support from everybody is our focus right

now. >> yeah. but knowing tiger, you're telling me -- >> i'm not going to put anything past him of course. >> that's what i mean. and what he's thinking about i guarantee you he's thinking about shall did i just -- knowing how competitive he is, i'm sure that's entered his mind and he's asked doctors, how does this heal? what does this mean? what are the prospects of this people, jay, i've had my entire life, craig staffer, whomever, chris -- you know, you don't need to be an athlete to be a golfer really tell that to bryson dechambeau when you see somebody hit it 500 yards. it helps with torque to hit it that way. >> we have 154 players, the best, the strongest field in the world. to your earlier point, joe, we've played 36 events since our return to golf, 22 in the super season you look at the events the last

week bryson battling lee westwood and others down the stretch. i think this has been a remarkable season, a remarkable time for our game. we come into the players championship one year later and we're excited to showcase this great venue and great championship to the world. >> we've pointed out in the past that the sport itself can be played with physical distancing but not necessarily the fans and that's what's been missing i guess you could do a 30% or 40% of normal occupancy. could you do that bringing fans back >> yeah. listen, this week we'll be at roughly 20%. you'll see 10,000 fans a day this is the fifth week where we've returned to fans as we look forward, we expect to increase off of that base and, yes, our sport lends itself extremely well to social

distancing i think these venues, a stadium golf course over several hundred acres. we've put the same amount of thought and care, our leadership team here, into the return of fans as we have to every step in our return to golf it's an important time as the pga tour and all of sports return fans and take that important next step and our return to normalcy, we're really encouraged by that i've got to tell you, having been out there for so many weeks without fans, particularly that week of the waste management phoenix open, seeing young kids along the rope lines and just seeing people so happy, it's -- we've missed them and we look forward to having them back. we've got the greatest fans in the world. >> this is a great tournament because everybody knows, it doesn't matter who's winning, you have to get through 17 and 18 you have to get through both of those. that's always great. i can't wait to watch. there's not many silver linings

to the pandemic. how about two masters in six months that's coming up do you believe that? >> yeah. you think of that, we've called this our super season. seven big events you had the masters and the u.s. open in the fall this is the first of five this -- this fed ex cup season, this calendar year we have the olympics at the end of july and the fed ex cup at the end of august, end of september. our fans are in for an unbelievable run our players are excited about it again, it's another opportunity to showcase our great sport. >> hey, jay, i think most people know, but in terms of charity and what the pga tour has done over the years, have you been able to keep up with all the needs that you satisfy all around the country from all of that money that goes to charities? has it had to have been cut back because you didn't have the revenue this year? is it pretty close to previous

years? >> you know, i would just tell you, joe, that we -- you think about the fact that we were shut down for 91 days and 13 tournaments and we're fortunate to have great title sponsors, great tournament organizations in every single market, great media partners we worked really hard to try and find ways even in events and markets where we weren't able to stage the event to be able to return some dollars for charity. we generated $160 million for charity in the markets where we play our tournaments last year, which is down from 200 million the year prior, but we think that was an exceptional return in a year where, you know, we were challenged not only in the weeks we weren't playing but we were staging these events without spectators that was really difficult. so, again, kudos to our partners for making that happen and now that we're returning fans, we see our ability to grow off of that number as we look to the end of 2021.

we expect a great year on that front. over time we're going to more than make up for that. >> what's a high -- i know you played 17. what's your highest score on that hole or did you pick up >> no, i never pick up it was double digits but i think to your point, joe, you know, we're looking at some win winds of 8 to 16 miles an hour this week a beautiful weather week in store. >> get that green dried out. i'd have to quit the ghame if i didn't pick up i'd still be out there someone would be out there still looking as i go back and forth. >> joe. >> yeah, go ahead. >> last thing i will say, you love this game and you look back at last year and look back at this week. the fact that, you know, golf was shut down for two months but rounds of golf up 14%. this renaissance resurgence is

taking its way into '21. we're excited to invite more and more people into the game. people are making golf their game. >> it helped ease the -- what we've all been through for the past year. i mean, a lot of people obviously had -- are going through much tougher things but psychologically to be able to get out there, clear your mind, it's definitely been a big help. jay monahan, thanks. we'll be watching. who are you picking? >> i'm not good at that. with 154 of the best players in the world, we're going to have a great champion it's going to come down to the end on sunday. that's my prediction >> all right, commissioner thanks >> thank you >> don't be a stranger we'll see you soon there you have it. thursday through sunday. programming note don't miss complete coverage of the players championship thursday through sunday on the golf channel and then when it's not on golf channel it's on the parent of the golf channel,

co-parent, nbc coming right back. becky. toss it over to you. i know your hubby will probably be glued to that, right? >> yeah. my son's a big fan, too >> yes. >> jay's been awesome. by the way, i love his honesty double digits. right out there. we're coming up with more stocks on the move this morning right after this later, jim grant of grant's interest rate observer will join us to talk about the month and rates and what it means to your portfolio. where it's headed from here. check out the stock market futures. the dow futures indicated up by 171 points the s&p up by 38 the big story is the nasdaq. it's come under a lot of pressure recently. the nasdaq closed in correction territory but this morning it's up by 263 points we'll be right back. walter, did you know geico could save you hundreds on car insurance and a whole lot more? so what are you waiting for? world's strongest man martins licis to help you break down boxes? arrrggh! what am i gonna do to you box?

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still to come on "squawk box" this morning, we have the latest on stimulus with kevin o'leary and tom swazy. first, march is women's history month and we are spotlighting some of our women.

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welcome back to "squawk box. i am dominic chu with your market minute. the nasdaq composite has been a focal point over the past year right now you can see here down 2.5 2.5% yesterday it brings us down to roughly 11% in the overall marketplace it's something to keep an eye on perhaps a bid there. technical levels, 12,637 it's been the 100 day average price. something to keep an eye on. watch what's driving the pre-market action today. it's a lot of the megacap technology stocks. these four stocks, apple up 2%,

microsoft up 2%, amazon up 2%, alphabet up 2% very symmetrical all up 2% in the pre-market trade. a little bit of dip buying apple a real underperformer in that group one other place to keep an eye on, some of the movements in the value oriented names discovery, exxon mobil, ford and american airlines all among the best performing stocks more cyclical beaten down over the last year. all of these are among the best performers on a year-to-date basis also up in the pre-market trade as well. that brings us to one of the big themes developing right now which is a broadening of the overall rally. first of all, it may not be a surprise to some but the equal weight s&p 500, that's the one that gives equal weight to every one of the components, not just the biggest ones out there, is outperforming the s&p on a one-year basis that little bit of outperformance in the last couple of several months speaks

to, joe, a broadening of the market rally some think that's a healthy sign for the market when it's not just five or six stocks dominating the action but all of them participating watch that equal weight s&p 500 etf. it could be a good sign. back over to you >> true. do you pay attention to jay -- i know you were watching that. i don't need to ask you that do you think we should make a fifth major? should that be -- the one this weekend, should that be a tpc? >> here's my thought you have the four majors steeped in tradition, that's fine. i believe the players has that same kind of field, arguably a stronger field you don't call it a fifth major. 9 players have embraced it as their own championship i'm okay with it being that. i love being there i was down there one time for a players. it is an electric environment back when you could have fans. >> stadium type courses. you haven't played it?

you haven't played 17? >> i have not. i've done it on the simulator. i have hit the green several times. i can't wait to do it for sure. >> he said he doesn't pick up. he never picks up. he doesn't do bipsic ball in pocket sitting in cart i'll still be playing some rounds somewhere if i didn't pick up. you have to do that. you have to do that. >> you're not a bipsic person. >> oh, i am. >> i've played with you. >> i'm not playing with you again because of your transition at the top. >> i got rid of it i'm changing my whole swing. >> you're kidding? >> yeah. >> it was so beautiful it was so beautiful. don't yank it at all beautiful. very good. >> thanks. >> earnings just in from dick's sporting goods perfect. dick's earned $2.43 a share. 15 cents above estimates

revenue above estimates. comp store increase 19.3%. better than expected forecasting full year earnings of 450 out of 520. that may be a problem with a consensus of 515 you can see the stock is down significantly. down almost 10%. "squawk box" will be right back. he loves monday through friday but lives for the weekend. ♪ he's put some miles on his truck and now, it's time for something new. so he came to truecar and saw what other people paid for the same truck he wants. ♪ now, he can recognize a great price. truecar was so easy, chet was in and out and got right on back to the life he loves. before you buy a car or truck, see what others paid for it with truecar. re-entering data that employees could enter themselves? that's why i get up in the morning! i have a secret method for remembering all my hr passwords. my boss doesn't remember approving my time off.

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welcome back to squawk debate time. president biden's $1.9 trillion stimulus plan. will it help the covid recovery or is the government putting checks in the wrong hands? that is the question of the morning. new yorkcongressman tom swazee is here, kevin o'leary is here, shark tank co-host and cnbc contributor. good morning to you. chair of o shares. i think the gloves are going to come off early on this one i'm going to kevin first because i know you're not a fan. make the case and then we'll give it over to tom. >> why this bill fails is it does not recognize that a new economy is emerging. it's trying to build back what

we had in 2019 and early 2020. so much has changed. the american economy is digitized, more efficient. it's like a coil spring ready to burst open as soon as people get vaccinated if we could focus on what really matters. i will give credit to biden and his team here in miami where i am the cvs is open vaccinating people every hour if you told me it costs $1 trillion to accelerate vaccination rates from 2 million a day to 7 million, i want to spend on that. that's the highest internal rate of return for the american economy, the taxpayer and every individual in it but this bill misses the mark in so many ways. so much waste. i encourage every single taxpayer to just read it in a synopsis, plenty of it on an internet how about 300 million to covid

animal surveillance. last i checked there are no animals worried about covid. all kinds of money going off to states way off broken before covid hit. then 128 billion to the teachers union. that's basically funding mediocrity high paid teachers should be high performers. we can't do that under the current union situation. there's waste, waste, waste. and who pays for it? future it's just terrible to waste this money. i would have said give it to people that are unemployed and get the vaccination going. the only two cohorts that matter don't fund the airlines anymore. fund the employees of the airlines that have been displaced by the fact we simply don't know yet how many people are going back to business travel we don't know how many people are going to work in the office. we have to let them work before we fund it. >> congressman tom swazee, respond to that. >> i don't know where kevin is getting his talk points from the reality is this plan is

widely supported by the american people experts like janet yellen says it's the most important thing we can do right now you talk about giving money to the unemployed, this does give money to the unemployed, $250 billion to the un34r0ids $350 billion to the state and local governments that have been whacked in sales tax we had refrigerator trucks full of bodies in our streets $424 billion in $1400 checks to families i would have liked some of those to be more targeted than they were that's going to keep the economy booming. you have to look at how cruelly uneven this pandemic has been. some people are unscathed. some people working remotely, making money, wall street's going up, online retail is doing great. other businesses have been wiped out. 25% of the people who make under $40,000 a year are unemployed. so many people are just hanging on if you saw "60 minutes" this week end, it is unbelievable

people living in homeless shelters, work two or three jobs, can't get back to work because so many businesses have been closed. there is a new economy, kevin is right about that we have to be ready for that we have to get through this difficult time as the president said, we have to build back better most economists, 90% of them say the biggest mistake is not spending enough money. i believe that this is going to be great for our economy we'll have to see what the results are. economics are very different than what they were 20, 30, 40 years ago. we know what to do the fed has tools to deal with inflation. this is a great plan to build back better, to help people build back better. it's to reopen schools and put kids back into schools in safe environments so they can learn and not be disadvantaged >> kevin, help me with this. i don't disagree with you on the idea of wanting to do this more precisely. i think everybody wishes you could actually -- like a laser

beam just get the money to the most vulnerable people, but if i told you the system is not created in a way that allows for that, is this an acceptable way to do it >> no. we're talking -- >> you can't do it in the most precise way but i know we all wish. >> andrew, the average salary in america, 52 to 60,000 depending on region. why are we sending gainfully employed people checks why in the world would you ever do that when there's people unemployed that are really hurting? give them more money don't fund people that are already employed this economy is going to probably run at a 7 to 8% gdp and we're sprinkling money out of a helicopter down to people already employed that's too blunt way too wasteful the risk of inflation becomes a big factor that hurts everybody you just can't do this again we did this in the first ppp program which i think was 60% wasted i don't want to do it again.

money to people unemployed money for the logistics of vaccinations, that's it. the economy is going to come back screaming it doesn't need anymore stimulus please by the way, there's tons of infrastructure spending here another billion and a half they haven't spent the first billion. why is that in this case what does that have to do with covid? there is so much non-covid stimulus here. it's a horrible, horrible piece of legislation every american should read it. it's just full of waste. >> congressman, do you accept there's waste in there >> there is some waste there's some waste in there. there's no question there's some waste. >> when you say some waste, do you think there's -- it's 1.the tri -- 1.9 trillion. >> is it $100 billion of waste $500 billion of waste? what do you think? >> it's less than $100 billion of waste, far less than $100 billion.

it's a false narrative there's waste throughout this bill i agree with kevin, i would have loved to have seen the $1400 stimulus checks more targeted. we couldn't get that i can't get everything i want. you have to build a whole coalition of people together janet yellen, i'll take her opinion more than the canadian reality tv star, says we're not going to have inflation because we have the controls in place. we haven't had inflation in this country for such a long time because we know how to deal with it now i don't think we're going to have horrific -- >> wait a second wait a second. this canadian tv star by the way pays lots of taxes here, has his children that can vote and is on his way to becoming an american citizen shortly so i can vote and i can't wait to do that. >> i'd like to be at the ceremony and congratulate you on that kevin >> thank you. >> that's a wonderful thing and i enjoy watching you on television this is a very serious time in our nation's history building a coalition of people that's widely supported by the

united states american people, the people are saying -- 80% of people are saying they like this plan it's going to pass it's going to happen today or tomorrow, probably tomorrow, and it's going to have a positive impact on tremendous amounts of people that are hurting. as i said before, the uneven impacts of this pandemic are just cruel because so many people are unscathed, but other people lost family members i lost my father-in-law, 92 years old. he got the coronavirus died within 36 hours so many people lost their jobs and can't go back to work. so many mom and pop businesses have gone under. you mentioned the airline industry -- >> i respect that you serve the country and i really respect what you do. just one question. it doesn't give you a license to waste money. i want to put up my hand and say i'm a taxpayer i wish you had fought harder to take out the pork. >> it's not pork. >> if enough had done that you would have represented the american people and the people unemployed better than this.

this is so wasteful. >> kevin, that's a false narrative that this is full of a lot of pork. i told you before, there's $400 billion for checks $350 billion for state and local aid. $250 billion for unemployment. $219 billion for child care and earned income tax credit there's $178 billion for schools. $176 billion for vaccines and testing. there's $100 billion for farms and small businesses $47 billion for fema $40 billion for renters. 25 -- there's so many things that are important things, comprehensive that need to be done. >> yes and there's $135 million for museums. what do museums have to do with covid? why are we giving money to museums? what's the point >> a lot have been wiped out in this process we don't want to lose our culture. we don't want to lose the essential fabric of our

community. we want our museums, small restaurants, we want our libraries, we want our entertainment industry back. >> congressman, kevin, want to thank you. >> vaccinate people, they can go to museums this is nuts. >> we need to get people vaccinated but we need to support our museums in the same way we're trying to support our small businesses it is a larger debate. we will see where all of this plays out over time. thank you to both of you gentlemen. >> thank you >> you bet talk to you guys soon. when we come back, found inner and editor of grant's interest rate observer, jim grant will join us he'll be up after the break. in the next hour, thomas peterffy, interactive brokers on the trade. not the exception. at emerson, our cold chain software and technology keep perishable food at proper temperatures, to assure its safety and quality. emerson. consider it solved.

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i think tepper's right we're going to see additional balance sheet expansion at the fed in a way we've never seen before >> that was kyle bass on "squawk box" yesterday sharing his thoughts on central bank policy. let's talk a little bit more about the fed and interest rates with an expert on the subject, jim grant. he's the founder and editor of grant's interest rate observer

jim, kyle was talking about it, kyle bass, because of what joe had heard from david tepper yesterday. tepper, who's made big, bold market calls in the past, thinks he would be a buyer of stocks here because he believes the japanese are about to start selling bonds again. i'll ask where you think treasury yields are selling again. he thinks that will cap the yields that we've seen rise so rapidly. where do you come in on this >> david is a formidable character and something to be said for what he said. my view, to take a very wide angle and that we have been in a 40 year bull market in bonds almost living on wall street today, any recollection of interest rates rising. predisposed to interest rates going down these are the lowest nominal rates in 4,000 years and to take

a lot narrower lens, they are remarkably low when adjusted for inflation as measured. since 1962 you would get 2 1/2 almost percentage points of real inflation adjusted yield by owning the 10-year treasury. today you get exactly no real interest inflation rates about 1.51, 1.60 the value proposition for the 10-year treasury rate is baron nothing to be said as an investment how often would you say the 10-year treasury is the most important rate in capitalism i think it's important to bear in mind that it is an artificial rate, manipulated rate the most important price in capitalism is corrupted. i think that's a fact of the

first moment >> which means what? you think at some point there will be no way to continue to manipulate it and that's when things will spiral out of control? >> yes i think that the treasury -- the treasury rate is going to go up. i think it ought to go up to generate a proper return for savers, but i think more importantly perhaps what ought to happen is what will happen owing to the imbalance of supply and demand the so-called primary dealers, warehousers of treasuries are checker block full, much more so over the average of the past ten years. the treasury sheet is bulging. almost no one buys this because he or she thinks it's a great deal this is security that's held by people who are price insensitive and it certainly shows because it is a suppressed interest rate, it ripples throughout our capitol markets this whole idea of techno utopianism

you don't have to have any earnings this is sustained by these artificially low rates so i think that the 40-year bond market, boom bond market is arguably over or ending and what lies ahead of us is important in inflation with rising interest rates. >> jim, we're almost out of time and this is really important it sounds arcane, but if you're right, people should sell stocks because they're going to get much better deals relatively speaking in bonds than they have to this point because it wouldn't just be the 10-year you would imagine other bonds all across the curve would go and not just treasuries, too you're talking other bonds all related to this. if tepper's right, you should buy stocks. >> yeah, i wouldn't be quite so broad brush. there are stocks and there are stocks i think the interest rates have facilitated the over valuation of the kind of stock, of the kind of business that earns no money that exists on a wing and

a prayer and a vision. those stocks are vulnerable to driving rates. other stocks are going to do well in an environment of rising stocks and inflation one must distinguish i think bonds as a class of asset are under the greatest suspicion. i mean, would you rather own a 10-year treasury with 160 or a 10-year mortgage at 3.75 >> that's certainly what we've seen jim, it's a longer conversation. we'll have you back. it's not going away any time soon we appreciate your time today. >> thank you, becky. >> thank you still ahead, we're going to hear from north island chairman glen hutchins, senator pat toomey and interactive broker chairman thomas peterffy as we head to break, take a look at the futures this moment the joe board, squawk board.

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good morning tech shares looking to bounce from 90 minutes to go before the

opening bell nasdaq futures firmly in the green. the selloff that put the index in correction territory. house closing in on final passage of president biden's nearly $2 trillion stimulus bill democrats aiming to get it to biden's desk before key aid programs expire. speaking of d.c., gamestop will once again be a hot topic today. senate banking committee looking at the volatility in the stock which is continuing as we speak. pennsylvania senator pat toomey will join us live as the final hour of "squawk box" begins right now. good morning and welcome back to "squawk box."

one of them is bouncing. the other is continuing its gains. the dow is already up quite a bit yesterday. 300 points the nasdaq is bouncing which was down yesterday when it actually dropped into correction territory. that will be more than 10% off its february 12th record closing high the dow on the other hand interday traded at a new record yesterday. see whether that is exceeded there's the nasdaq, what we saw yesterday down 2.4%. and treasury yields were down below 1.6. down at around 1.539 this morning. bitcoin is up and i guess we'll talk gamestop a little later because that -- there's the -- squawk stack 214 after a big gain yesterday squawk stack. >> 40% yesterday. >> squawk stack, that's a keeper. >> for now >> we can always revise it.

>> i like it. >> you can a just it every day >> you can adjust it every day everything you need to know. you know what, why not do that it's called the squawk stack i'm fine don't call it the joe stack. that's fine. i like that but -- call it the squawk stack every day we put in the most salient, in our view -- >> exactly. >> -- most salient -- >> good idea. >> we can have -- >> but i think we should mix it up every day. >> we can have that person licking and drooling can be our sort of logo for that. >> no thank you. >> what else >> let's get you caught up on some of the other stories that investors are going to be talking about today. the house is preparing to pass president biden's $1.9 trillion could i have relief package. we're going to talk more about

this with glen hutchins. that's coming up in a few minutes. the senate banking committee is scheduled to meet this morning to talk about the recent volatility about gamestop. a hearing titled who wins on wall street, gamestop, robinhood and the state of investing it's an opportune time as gamestop is starting to make big gains again. it comes after a few weeks of relative calm. this morning stock's up by 20 bucks. yesterday that stock was up by 40%. if you go back just a little bit in time, on friday it was trading at only $110 versus the 214 it's sitting at. a lot of volatility. we'll watch this in the market today. we're talking with senator pat toomey finally, we want to draw your attention to some new comments from arc investment founder

cathie wood. her five etfs have been raking in the funds they returned nearly 150% last year appearing yesterday on "closing bell" wood talked tesla, her most famous bet, and said it's leading the charge on several key technologies >> battery technology costs lower than anyone else out there and will remain lower. artificial intelligence chip, it designed its own no one else has designed its own chip this is analogous to apple in the day. >> wood said that she is not worried about the recent drop in her funds, which has been dramatic she said that the bull market is simply broadening out to include more strategies like value joe? >> thanks, beck. let's continue the market conversation talk about how the tension between cyclical stocks and momentum stocks is playing out for investors. cnbc's senior markets commentator mike santoli joins us hi, mike >> hey, joe.

it has acted as a little bit of a seesaw if you look at the setup for the qqq, the large cap growth stocks, it's obviously under a lot of pressure. represents an anti-momentum trade. i pointed out a couple of times since last week, that level, that peak from september 2nd, it was $302 trillion. the past few days it crossed this level i don't know if there's grander signi significance it looks pretty over sold and less crowded than it has we have this bounce. value versus momentum is something you can isolate through style etfs, here they are. this is the -- ishares value etf and momentum you see not a huge gulf but look at how they've crisscrossed in the last few weeks that's a pretty extreme move the momentum etf is not living up to its name what happens when the last six-month winners start to lose their energy, this is what happens to momentum.

i want to take a look at semiconductors versus industrials. are we saying anything about the cycle, strength of recovery or about positioning? semi's been a massive leader six-month chart. they've given up a lot of that premium. because industrials continue to move in the right way, macro is there and we are losing what's in semis because they are obviously at the tip end of both technology and the recovery of the economic cycle they act as tech and industrials. they are converging and you haven't lost the sense that things are moving in the right way macro wise, joe. >> we have to keep in mind how far things move before the latest things happen >> yes. >> i forget all the time, we see the drumming in the nasdaq over the past week or so. down 10% i was looking at your chart. a lot of things in a year were twice what they were at some point in the year. things have moved so far >> yeah. >> i don't know why we seem to

be so surprised when that's where you see the quickest pullbacks. when it's quick, it makes me think you shake out some of the people you need to shake out and it's that slow, steady decline that you notice. >> we haven't done one of those in a while i don't know if that's significant. i don't know if it's how fast things move. then you bump around and recover. that kind of drip drip it seems like it hasn't been the case for some years. >> mike, thanks for that report. beck >> thanks, joe the cdc out with new coronavirus guidelines chief among them, vaccinated people can now congregate together indoors and without masks. even one year into the pandemic and with 18% of people in the united states with at least one dose of a covid-19 vaccine, the cdc is still recommending people

avoid unnecessary air travel airline industry groups are pushing back in a statement airlines for american said being on board a plane poses a low risk of coronavirus infection because of heavily filtered air and federally mandated mask wearing. push back that you might anticipate, andrew. a lot more coming up in just a moment the house closing in on the passage of president biden's $2 trillion covid relief. glen hutchins going to talk to us about his thoughts of the impact of wall street and main street the top headlines right now. bubbling get airline frontier filing for an ipo. it previously filed in 2018 but dropped the plans last summer. also online closing styler stitch fix missed down.

idce a full year profit guan stay tuned you're watching "squawk box.

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welcome back to "squawk box" this morning take a look at futures the dow looks like it would open up 125 points higher s&p up higher. nasdaq up 284 points higher. becky? >> thanks, andrew. as we told you just a few minutes ago, president biden's nearly $2 trillion covid relief bill is expected to be passed by the house by the end of tomorrow it's a bet that massive fiscal stimulus will speed up the recovery joining us with stimulus, wealth taxes, crypto is glen hutchins glenn, let's jump right to it. what this means for the economy. you can question what's in it, what should or shouldn't be in it, but what's it going to do for the economy? >> i think you have the right framing, becky, which is fait accompli having been on this show before, i've talked about my concerns about inequality and i do think that this is -- you have to

think about this as a bill that's going to get at in the short term some of the major issues of inequality that have been surfaced by the pandemic. the wealth tax is the wrong approach i would have added the minimum wage into this what we have to understand right now is a lot of the performance of the economy comes from the past stimulus bill, which is still operating. we're running at about 10 million, a little bit under 10 million less jobs than we had a year ago 3.5 million of those are in the hospitality sector african-american unemployment is still at about 10% i think we do need to have a relief bill for the economy. i think this is a pretty good one. is it potentially too big? probably it was -- the size is probably picked as a negotiating tool before the georgia election. will it over heat the economy? i don't know

i would point out that the dog that hasn't barked yet is the fed, which hasn't talked about the risk of two great stimuluses, still focused on the slacking economy in the end if we have relatively low interest rates, it's not a bad environment in spending. in the end, if the fed can act and congress can increase taxes. i think in the end it's not a perfect bill but it's directionally the right place to be >> all right let's talk a little bit because you've long been a supporter of democratic politicians, democratic moves and things that want to get done, but part of what we've heard recently is this new move to tax the wealthy. we had lee cooperman on the show last week and i'd just like you to hear what he had to say i should tell you quickly, he was opposed to senator elizabeth warren's tax he did say he voted for joe biden this time around listen to what he has to say >> i think it's intelligent. i don't think it's legal we have to deal with the

dialogue that the progressives are taking towards wealthy people they tend to villain nize wealth >> what do you think -- >> i'm sorry i would say it's not a new idea. elizabeth warren ran on it in her presidential bid. i've challenged this it's not a good idea disadvantaged.

>> it's not a way to do that >> will this get passed? >> there's not a single political commentator. it was objected by democratic voters in the democratic primaries. doesn't have any political momentum >> glenn, i want to shift to something that i was not aware of until very recently, and that is something you've been doing stealthily building up a new vc fund, investing -- i think raising $72 million with big names, names of people we know, joe mogley is involved in this, l.l. cool jay is involved in this. it's something where you're going after to raise money to make investments in crypto explain this tell me what you're into >> so i've talked a fair amount over the years on this show with

you about my use in crypto we've raised a venture capital fund, $72 million. about 100 investors. we've been unable to talk about it because of the rules associated with fundraising. and we've made 7 investments the idea behind the fund is that the crypto technology is going to enable a new wave of innovation and new form of computing. of our seven investments, one of them, you know a fair amount about, you might have heard a fair amount about. investing in the flow of network created by dapper labs it's operating the nba top shop application. in the last 30 days there have been 260 million in trades, 190 million. it's a digital trading card and we purchased the token on the

network that operates it and so we are making a pretty big bet. we includes me, my son james and partner travis scher we are making a big bet on this as part of the future. >> glenn, you were somebody who was involved with buying bitcoin from pretty early on you invested a lot in it i think you sold some at some point. >> yes. >> where do you stand on bitcoin itself >> i own a bunch of the currencies, becky. the thing to understand is the nonfungible tokens i love the idea of the squawk stack, though i think you need to need a name that doesn't make it sound like a menu item at ihop. >> what's wrong with that? what's wrong with that >> maybe nothing wrong with that, joe. it's a good one. just kidding >> can't argue with that >> i think you should allow your

guests to suggest a data point to put on the squawk stack i would look at the price of the flow token which is one of the first tokens that's operating in network that has a use case, the first use case of top shot which digitalized trading cards which is a huge mania right now. people use the flow token in a way they don't know they're using it they put in their credit card and make it. it's got a trading value which you can look at. it rises and falls as a result of its use case. it's the future of cryptocurrencies you can look at a price right now. >> you've got to explain this to me, glen honestly, yesterday i was thinking that these nfts, nonfungible tokens would be the clearest sign of too much liquidity out there. because you're saying this, i will listen because you're very

smart, you know about these things, but literally i was thinking that these nfts were the equivalent of what used to happen in the roaring '20s where people would light their cigars with the $20 bill, $100 bill you light it up, you have to be kidding me i don't have a trading card that i can show and put on my desk or somewhere else that i can physically trade with somebody to get some of these things. explain to me why this is so cool and why it will remain cool >> nba top shot has an application, you have a digital trading guard. you own a video -- unique video image of a player doing a specific thing for instance, very popular one right now is zay an williamson blocking a shot in the stands. no one else owns that except you. you can use it, share it, trade it on the network. part of i think your question is why is the world moving from -- i would restate it why is the worldmoving from ter rest stre

yal to digital why are a number of use cases or items we want to own more digital than terrestrial, it's still facilitating but it's real it's significant and that's kind of big point number one big point number two, there are a lot of nonfungible tokens for sure the ones i am interested in are use cases for something people are doing in the reason to buy and sell the flow nonfungible token is you need to buy and sell it to trade on the network so you can buy and sell your trading card and by the way, these are much better than digital trading cards because they're liquid item that you can buy and sell they're not something that sits in your closet you can enjoy and share with friends across the network and i would say this is why in the past i've told you that i think that the right cryptocurrencies are more like

copper or platinum than gold, because they have use cases and they rise and fall not just as store value and the use. this is a good example of that >> it sounds smarter to me than jack dorsey's original tweet, i'll give you that glenn, just to prove your early pioneer roots on this, tell me when you first bought bitcoin, how much it cost >> i first invested in a company called the digital currency group in january of 2016 at that point i believe -- i'm not sure but i believe bitcoin was around $100. i'm not sure. >> i know it's been years. i know it's been years i know you were very early in this so i am reluctant to not take very seriously anything you tell me in this world. >> thank you >> glenn, it's great to see you. i hope you will come back soon because there's a lot more that you have to explain to me. thank you. >> take care, everyone stay safe. >> okay. good to see you.

>> he might be on to something sitting here dreaming about the ihop and they show the stacks, a big thing of butter. going over the side. >> i thought you were going to talk about nfts. you're dreaming about pancakes >> if we need a logo for the squawk stack if we need a logo for the squawk stack. it should be something that makes people happy and feel good >> the control room is very, very clever. they said nfps, nonfungible pancakes >> that's good that's good. coming up, bank stocks were hard hit, hit hard in the covid selloff in a year ago. we've seen recoveries in the big names since then how exactly did we get from there to here. what's ahead for profitability, buybacks and face-to-face interactions as we glimpse some day the other side of the pandemic a special report on all of that is next when "squawk box" 'ls.rn wel check the squawk stacks too. om fidelity --

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welcome back to "squawk box. dow up 108 not as positive at least don't know if it's good or bad nasdaq indicated premarket up 271 points the s&p 500 indicated up right around 35. andrew >> meantime, bank stocks, they

have come roaring back since the pandemic lows. wilfred frost joins us with a look at what's next for the sector wilf >> reporter: andrew, what has happened over the last year? the bank index up over 115% from the low last march the sector collapsed from and rebounded to surpass the january 2020 high in the space of 14 months why was that first, a crucial regulatory and legislative relief for them and their customers meaning we're likely to see only temporary accounting costs due to the pandemic rather than permanent cash losses. secondly, market volumes and levels boomed. that's great for trading and asset management expected to rebound creating a steeper yield curve than we have in years looking forward, a few key things to look out for banks have been able to embrace work from home fully at times 95% plus not in the office, but

they're also a sector reticent to depart from office life in the long term. david solomon said i do think for a business like ours which is innovative, collaborative apprenticeship culture it's an aberration that we're going to correct as soon as possible. second, buy backs which have been one of the key drivers of performance in the last decade are suddenly appearing less attractive for the simple reason the stocks have run up so much this could add to another recent theme getting attraction, m&a and more cash consolidation. the fight with fin tech likely to intensify jamie dimon said the fin tech correct, quote, i expect to see very, very tough, brutal competition in the next ten years. i expect to win so help me god andrew, the other final point i note, snapshot this crisis versus the last crisis banks have not been in the cross hairs in terms of the main focus of legislators and regulators

and have escaped that. i mean, apart from the citadel and the robinhood stuff recently, banks themselves have escaped it largely >> okay. so a question tying maybe your number 2 and 3 together for a second which is there's a big expectation of a battle with fin tech, but you also talked about m&a which makes me think either some of the traditional players tried to buy some of the fin tech players, i'm curious what you think of that, or could you ever imagine a situation where some of the fin tech players actually buy one of the traditional banks? >> reporter: i mean, very good question on both fronts of the some of the squares and paypals of this world are so big that you wouldn't expect them to be bought could they buy small regional bank perhaps. but they seem to want to do it on their own the big banks are fighting back as well. if you look at the performance over the last 12 months, you have to say that, yes, square's up 175%. paypal is up a little over 100%,

but morgan stanley is up over 100% goldman sachs is up 100% regional banks are up 90%. everything has done very well over the last year the snapshot today is that big banks are probably better prepared and ready for the threat whether you're looking at morgan stanley, google doing markets so on and so forth than retailers were amazon bought in the fight or tesla automakers were when tesla bought the fight. that plays out over share price performance. we'll have to see how it plays out over the next decade the last 12 months it's not just square and paypal, for example, that have performed. all of the banks have really rallied pretty hard. >> wilf -- wilf, you know the elephant in the room i mean, you know what it is. i mean, you're like -- you're one degree separated from royalty itself

sir david -- he's a sir so, i mean, what can you say monarch -- what are we supposed to draw from this? i want someone to tell me, like you, to tell me what i'm supposed to be feeling today. >> i can never tell what you're supposed to be feeling, joe. my big main take away is i can't -- it's so desperately sad it's come to this. i can't quite believe how it's come to this three years ago everything was so happy, wonderful. i don't quite understand how we got to this stage. that's all i can say in the short amount of time we've got it was shocking. >> i have one question -- wilf, i have one question about that because i watched the interview like so much of the rest of america. one issue did not come up in that conversation. given we're a business network i figured i would raise it with you which is money there was a whole conversation of how they felt trapped in this world and money comes with

freedom. they're making now a lot more money, i think, between netflix and spotify and all sorts of things how much do you think that money plays into this? >> reporter: god knows you'd have to ask them i really can't possibly comment for what they're feeling on those types of things. you know, who knows? and i don't know how big those deals are. i think everybody involved is very wealthy before and after regardless who knows. >> this is getting too cute. wilf's getting uncomfortable. >> it's not that i'm uncomfortable. how on earth am i supposed to answer that? it's ridiculous. >> have you seen "last tango in halifax" what's a tosser. if i call you that pillick. i'm using all of these words derek jacoby is a great, great actor. theater. >> that's awkward, joe let me ask you what this dirty

word means go ahead, wilf. >> is tosser bad they use it -- >> wilf is like i need to get out of here. >> wilf, let me save you. >> that's a bad word that's a bad word. >> it is >> run away, wilf. run away. >> thank you thank you for indulging us in these questions and it is very sad. everything that's happening is -- it's a sads situation. >> tosser. >> i want to say -- >> run away, wilf. >> -- shouldn't have to be related to these things. >> see you guys. >> great show. >> when we come back -- >> figured you'd like it. >> two more big interviews you don't want to miss with pennsylvania senator pat toomey who's going to be joining us on today's gamestop hearing in congress and interactive brokers thomas peterffy. that name and other stocks too as we head to a break right now, a programming note for you make sure you tune in to cnbc's "on the edge" coming up at 6 p.m. eastern time all this week. sharp opinions, the hottest takes and fierce debates about

the big players and the news in the world of business. scott wapner did an awesome job last nhtig make sure you check it out "squawk box" will be right back. m right. so we're upping the benefits without upping the price. introducing magenta max. now with unlimited premium data that can't slow down based on how much smartphone data you use. plus get netflix on us, and taxes and fees included! you won't find this with the other guys. in fact, you'll pay more and get less. right now, pay zero costs to switch! and bring your phone -- we'll pay it off! only at t-mobile. folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer to help make the world a smarter place

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later this morning the

senate is going to hold a hearing on the retail investing. here with more, pennsylvania senator pat toomey, ranking member of the senate banking committee. it's being reborn again, gamestop i don't know if you follow it that closely at this point, senator, but it's truly a phenomenon that looks like it's here to stay it's not just that name. we're seeing it a lot of places. what do you need to know >> well, look, i'm interested in what we're going to hear i think from our colleagues on the other side and some of the witnesses we're going to hear that basically unsubstantiated warfare how the system is rigged against the little guy there's a lot of criticism about gamefication, as you know. the idea that you make the experience of investment enjoyable and easy is somehow a problem for some folks, not for me we might get into a discussion about payment overflows and

whether that's a good execution mechanism. there might be some discussion about shorting regulations look, my view is the democratization of the markets has been fantastic zero commissions extremely narrow bid offer means retail investors can buy into stocks in a way they never could before being able to buy a fraction of a share. this is why over half of americans are now investors when 10, 20 years ago it was a small fraction it's really very, very good. i don't believe in this paternalistic idea we have to protect people from themselves and not letting them invest. i think we should celebrate these innovations. >> celebrate them and just -- so wild, wild west? just let it go >> yeah. >> let it happen >> you know, we've got a witness -- apparently there's a suggestion because gamestop is obviously overpriced, people should stop people from

investing in it. i don't know, was tesla fairly priced at 1500 times earnings? is it fairly priced today at 1,000 times earnings i don't know neither does the sec neither of us should be telling people what they can buy and what they can't buy. >> well, what about -- you can come up with other examples obviously when people get together and decide on an investment theme, but the power of social media and being able to aggregate so many people to do the same thing and, you know, all act in concert, which, you know, brings up the -- at least the perception it's some kind of pump and dump from years ago except it's got a new flavor that it's on a social media site no merit to that >> i don't think so. i don't know how sustainable this is. i think gamestop was a classic bubble and it still looks like

it's wildly overpriced that's just my opinion it's not at all clear to me that any laws or regulations were broken i'm not sure what you would do about people who are -- look, fraud is illegal and it should be and it should be prosecuted dishonest information about companies, that's illegal. it should be but a group of people coming together and saying, hey, there's a big short on this company, let's buy it and squeeze them out really we're going to try to ban that somehow? i would say there's one thing we should be looking at, that is shortening the settlement cycle. waiting two days from the time a trade is executed to the time that it actually clears introduces risk into the system and i think we could diminish that risk and that would be beneficial, but limiting people's freedom to make investment decisions, that doesn't sound like a good idea to me. >> toss it over to andrew. andrew >> senator, it is my understanding it is illegal if you and myself and joe and becky

decided that we were going to make a decision as a group to go buy shares of apple or tesla or whatever, whether it's a short squeeze or not, if we have this conversation together and then we go and we buy up a significant amount of shares, that unto itself under the current law is not allowed >> well, i'm not a lawyer, but that strikes me as a very, very broad interpretation of the law, andrew aren't there investment clubs where people get together all the time and discuss ideas i imagine sometimes a consensus emerges and everybody goes out and buys a stock are those people all routinely breaking the law >> no. in that case those would be independent decisions made by independent actors the issue is whether you do it as a collective. that is the law as i understand it >> okay. well, you may have more expertise on that element than i

do and i'm happy to be educated on that but, again, i don't know exactly where you draw the line between people sort of acting in a concerted fashion and people just agreeing on a set of ideas. >> the stimulus bill, we've been talking about it all morning we've been talking about it before did it get any more palatable for you, the final version >> let me be very clear. it definitely got worse. this is an embarrassment and it's a disaster. every big piece of it and most of the little ones state and local government, for instance, $350 billion you realize that in 2020 state and local governments in the aggregate collected more revenue than ever before that's not counting the $500 billion we sent them last year now we're told we have to send them yet another 350 billion we hear $130 billion so schools can open, except that there's no

requirement that schools open and only 6 billion of it is going to be spent this year. the other 122 billion is going to be spent in years into the future there's reparations for minority farmers and ranches irrespective of income or wealth. there's money for the national endowment for the arts, earmarks of all kinds it's a disaster. >> we talked about that, actually i don't know you need some museums. museums have had a hard time we don't want to lose our culture, dowe? >> yeah. this is not about covid. this is not about an economic recovery even the unemployment plus stops, we know that almost half of everybody who's unemployed will be getting paid more to stay home than they would make going to work. how does that make any sense at all? the direct payments. the $1400. the vast majority of those are going to people who never had any lost income. why are we doing this? we're going to borrow or print

$2 trillion and then send out a bunch of money a lot of states, state governments, they're just going to cut taxes they've got so much cash, nothing else they can do makes no sense >> all right, senator. roy blunt, you know, leaving like -- leaving left and right they could make a tough row to hoe, don't you think >> roy's a terrific senator and the senate will miss him, but missouri is a red state. he will be replaced probably. >> all right, senator. thank you. good to have you on. >> thank you. >> beck? when we come back, another important take on the renewed volatility in gamestop, this time from a retail pioneer thomas peterffy will join us live first as we go to break, take a look at the squawk stack short stack. there you go yup, everything that matters

everything that's worth eating up stay tuned you're watching "squk x" aawbond this is cnbc >> that's a beauty 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! some say this is my greatest challenge ever. but i've seen centuries of this. with a companion that powers a digital world, traded with a touch.

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welcome back to "squawk box. we just spoke about today's gamestop hearing in d.c. with banking committee ranking member pat toomey we're going to talk in just a moment about gamestop and some of these larger issues, but i do want to show you where the

markets stands right now gamestop is at $219.35 we should also show you the new, what are we calling it, the squawk stack let's flip the board around, guys the dow looks like it would open up $93 higher. here we have everything you need to know in one screen, if you can believe it you can take a look right there at bitcoin now trading at $54$ $54,602 and the 10-year note which is the only thing alan gree greenspan's paying attention to on that screen is the 10-year note we put it at the bottom. maybe it should be the top 1.535. we want to talk a little bit more, if we could, about the gamestop hearing and what comes next after speaking with senator pat toomey want to get the investor take with thomas peterffy

he is the founder and chairman of interactive brokers thomas, great to see you as you just heard, we're going to have a whole conversation i think today about payment for order flow and i know it's such a complicated topic, but the question i think everybody is trying to is trying to understand on a technical basis is if companies like robinhood, like yours, had to use just what they call lit exchanges, just lit exchanges, rather than to go through the citadels of the road that are paying for the flow and what not, would they get better execution on price >> my belief is the short answer is yes, but let me explain why i think that so i frequent traders and brokers and orders to the high frequency traders say that the

executions are better than what is paid in the public markets. and in addition, the brokers get paid for the orders so that they can afford to charge zero commissions and, therefore, the customer is better off this sounds like a very compelling argument except for two things one is the high frequency traders are diverting nearly 50% of the order flow from the public exchanges and as a result, the public exchanges have become less liquid and the bids and offers have become wider. so yes, obviously they did a slight improvement over the bids and offers which they have now succeeded in making wider. the second issue is that due to the lesser liquidity in the

public markets, more and more institutional traders do not run the show the orders publicly, because they don't want to push the markets against themselves so instead, they provide interactive brokers and other brokers with the orders that we are keeping in the dark, but we trade them against the order flow we get in so that many of these executions take place at the mid price and that a good thing, and that's now a slowly evolving trend >> thomas, it sounds like it may very well be that today, right now, you would get better execution through a citadel or a high frequency trader, but you're suggesting you need to remake the whole system because the system has been remade by these high frequency traders which have, therefore, perverted

the market in some way is that right? >> i'm saying that the system is remaking itself as we speak. >> and so if you were a sitting senator thinking about these issues, a policy maker perhaps you could pretend you're going to be gary against ler at the sec, what would you do >> i would do nothing. >> you would do -- but you just said that the system isn't working. >> no, i said that the system is in the process of remaking itself >> but just so that -- maybe i'm missing something here if we think that customers are not getting the best execution because of payment for overflow as the function the system remaking itself, wouldn't you want the sec to unmake it or remake it in a different way >> i would like the sec on this

topic to do nothing. >> i'm confused why if you think customers aren't getting the best execution. >> because customers are on the way to getting the best execution, and very soon, that will be the case as more and more of the institutional order flow goes into the dark pools against which the customer order gets upset, they will get better executions than they have ever gotten before. >> but this is in the future tense is what you're suggesting. let me pivot to a different -- >> yes, but in the very near future, yes. >> and to the extent that there's a narrative that high frequency traders are able to front-run the trades or -- which is illegal, or use the data to help them trade separately, do you think that's going on?

>> well, you know, it's a free market right? so people can use whatever data they wish to use i mean, some people use research you cannot outflow research. some people use -- but that data is your customer's data. >> we do not sell our customer's data if there is anybody who does sell it, that may be illegal i don't know >> fair enough thomas, it's a longer conversation i want to get into some of the technicals of -1 versus t-2 an if you think that needs to change, but we're going to have to have you back to have that conversation we appreciate you seeing you, though, this morning >> thank you >> thank you >> becky >> thanks, andrew. dom has a look at some of the morning's biggest premarket stock movers >> good morning. as always, let's start things

off with an earnings mover in dick's sporting goods. shares down roughly 7% in the premarket trades the retailer behind the name sake and golf galaxy store reported sales growth that topped expectations and gave a better than expected full-year profit why are the shares down? because they've been up 119%in just the last 12 months. watch those shares next up, beyond meat it's over 3% roughly 50,000 shares of volume. the maker of plant based meat foods listed an expansion at walmart locations. the shares up 3.5% we'll end on shares on tesla they are rebounding roughly 7% premarket. a million shares of volume helping things out today, yes dip buying but also an upgrade

by analysts over a new streak to a buy rating they said the leadership in the premium end of the ev moorkt becky, we have two greens and one red in the premarket i'll send things over to you >> all right thank you, dom let's get a final check on the markets quickly as we've been showing you. back to the squawk stack not enough of you have been enticed into eating pancakes this morning a couple said they've ordered from i hop already nasdaq futures up by 2.4%. guys, we'll be back here tomorrow that does it for us today. make sure you join us then right now it's time for "squawk on the street. 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

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good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with david faber. nasdaq is looking to bounce after falling 10% from the highs on monday. the ninth fastest correction in the comp's history ten-year yield down to 1.54. a three-year option kicking off a bigger week. the nasdaq 100 set for a sharp rebound as