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 bonds stabilize

why the widely watched investor woods remains bullish on tesla zblen a the cdc reopens guidelines, and what it means for the travel and transportation sectors we'll break it down. carl >> all right, guys let's kick off this market day it's going to be interesting as yesterday was a little bit surprising the nasdaq 10.5 from the all-time high. the bounce this morning, david, is no doubt going to lead some to believe that in a new era, although it will be choppy and a lot of transition, the growth and value over time can maybe work together? >> live in peace yeah we'll see. you know, what we've been seeing to a certain extent is sort of the failed momentum plays, sputtering out names we all know well that have had incredible moves and sort of these new momentum plays.

viacom and discovery which i'll talk a lot about a bit later in the show forging new heights that hard to imagine only 60-some odd days ago. but while the amazons of the world, the apples, the netflix, that momentum has stalled, and we do -- we used to talk a great deal, morgan, back in the days at the nyc about the influence of quantitatively driven funds, certainly, when they were and continue to be such an important influence. that is part of what we're seeing in terms of the algorithms that power them never completely sure. you also still have the reddit trade that figures in on the margins in certain names a lot of different moves and a lot of different directions. but today you can see faang which has not performed well so far this year is looking to be up >> yeah. the machines, i think bottom line equity futures jumped bonds are continuing and treasure market is going to be in focus this year

carl mentioned the three-year auction. you've also got 38 billion in ten-years expected to be auctioned off. 24 billion in 30-year bonds on thursday we saw what happened with the 7-year auction a couple weeks ago as well. i think we're not done talking about the story, but to your point, i mean, we have seen this divergence among the major averages the nasdaq yesterday falling more than 2% closing in correction territory the dow reaching an all-time high in trading yesterday. meantime, i don't know we always have people on there talking about their barbell investment approach i don't know maybe to your point, carl, it's growth on one end ultimately given the shakeout we're seeing in rates and value on the other. who knows? we'll see. >> yeah. great is the key term. we got the eocd this morning raising the estimates for global growth the argument is stimulus which the house is in line to pass

tomorrow and send to the white house, is going to add a full percentage growth to global growth in 2021 they take their global estimate to 5.6 u.s. they go to 6.5. it was only 3 .2 back in november and you couple that with some of the internal surveys nfib hiring intentions, goldman with a big note yesterday looking at hiring intentions, especially in small business not only going back to prepandemic highs but generational highs you've got to go back, the charts only back a few decades, but there's a growing sense that small business is going to need a lot of new workers to handle the new influx of demand, and that's going to bring all kinds of challenges. >> going to be so interesting. many of those workers i'll be curious to see where they're working from that's another key point for the economy, and so many of the things we talk about again want to talk a bit more about that. flexible work schedules will

seem to be the norm than not as we kind of move toward the new normal whatever that may be. with a lot more employment, we hope c certainly, but not necessarily people working in offices the way they've been accustomed to. >> no, and by the way, david, we'll talk later this morning about goldman taking tanger to sell in part because of valuation, but their general view is that retail occupancy is not going to be a straight line back up. i'm sure cramer would have a lot to say about that if he were here, and we'll talk with him when he returns. tesla is up 7 % in the premarket. a lot of discussion today about the way in which it has bounced a few times from rapid 20 % declines and of course, kathy wood yesterday on closing bell talked about how the company is really over time becoming a lot more comparable to apple >> tesla is passed that phase of

its life it did invest aggressively, and it has on four metrics, it is leading the charge, so to speak. so battery technology, costs lower than anyone else's 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. >> interesting comments from kathy. morgan who did add to at least draft kings last night i think another 800,000 shares >> yeah. it was a great interview just to go back to the tesla piece of this. i'm going to highlight elon musk's other company spacex because you can find more reporting on this on cnbc.com, but spacex wanting to connect more than just homes to the star link satellite it's putting into orbit. it submitted a request on moving vehicles think trucks and ships and jets

and musk commented on this on twitter. said they're not going to connect tesla cars to star link. the terminal is too big but this is the large trucks and rvs. you have morgan stanley and adam jonas as well. it gets to the bigger, broader discussion that we like to have around autonomous vehicles and the capabilities there, and things like ev, the vertical takeoff and landing aircraft that are starting to come to market as well but in general, the relationship space communication, satellite communications is going to have in being able to power this new wave of next generation technologies including some of the names kathy wood has invested in with arc funds >> i'm trying to learn more about it listening to your report about star link in particular it seems something we're going to be talking a great deal more about as it starts to take shape and running the autonomous

networks in my world, the old wireless world where we're obviously focussed when it comes to 5g nationwide on the three big players verizon, at&t, and t mobile and then the question about dish as well and their rollout of a nationwide 5g network focussed on the enterprise but unclear they have a great deal of spectrum they have to put into use, but this could be a real thing. and i think not that long ago, morgan, frankly, i don't think a lot of people thought it would become a real thing other than perhaps mr. musk who has made plenty of things become real over the last ten years. unclear where it's going to fit in, but there could seem to be a great deal of demand for the bandwidth. >> yes i think it speaks to what we're seeing in terms of new space startups coming to market via spac sort of that other bucket of new emerging technology and just this race to put more satellites up into orbit to be able to beam back some of the different communication capabilities

it's going to be something we talk about in the next hour as well but in the meantime, just to bring it full circle, shares of tesla up 7.5% this morning and hoping to power the major arches higher as we expect a rebound in the nasdaq, dow and s&p in less than a half hour >> yeah. we're going to keep our eyes in the meantime, guys, on the health care news there is reporting out of routers, david, that at least on the pfizer biontech, study, that it shows effectiveness against the variant in brazil. that takes one of the uncertainties out of convention over the market. >> you point out concerned about the variants is certainly something we hear a lot from the cdc and other leaders in the health care world that we are listening to let's get to meg terrell for more on that story in terms of

pfizer, biontech and others as well meg? >> hey, david. this is the latest lab study looking at blood taken from people in the pfizer biontech trial two or four weeks after the second dose. when they're fully protected by the vaccines what they looked at was the ability of the neutralizing antibodies generated by the vaccine to neutralize the variants they compared that against the strength against an older strain of the coronavirus what they found is that for b-1-1-7, associated with the uk and p-1, associated with brazil, the neutralization was equivalent to the older strain unsurprisingly, they found against the south africa, the neutralization was robust but lower. and they say that t-cell immunity may be involved in protection it shows it was still robust across the variants. they do say real world studies will be needed to really know

how well the vaccines protect against the variants until being seen as reassuring news that against the variants and b.1 in particular we haven't seen as much data against this variant that the vaccine neutralizes. this is the variant that is associated with potential reinfection rates in brazil which are really alarming public health folks in terms of the prevalence of those variants here in the u.s., it's b.1 .1.7 that's the most common more than 3,000 cases reported to the cdc p.1, just 15 cases it's the first one that folks are concerned about right now because it is more transmisable and that's why they say it's so important to get vaccine coverage out there before this has a chance to take off carl >> yes meg, with your help we'll monitor that along with the ongoing picture of supply and

vaccination administration in this country i was amazed at the tweet yesterday by andy, of those 65 and older, 60% have had the vaccine. seven weeks ago it was only 8 %. that's mind blowing. the wires today has new headlines about j&j being under stress according to sources and getting their committed vaccine supply to the eu which is -- i know you've paid a lot of attention to vaccine nationalism over the last couple days. >> absolutely. and it's been especially difficult it seems like for the eu in terms of getting supply. we've been seeing similar things with the astrazeneca vaccine some quibbles coming out in european markets over getting access to vaccines and we have all of these targets we've been hearing about this is a delicate process normally we are not paying such close attention to supplies of drugs and vaccines and we don't need them urgently in huge

quantities this could be a bumpy road but certainly getting a lot more people vaccinated in the u.s. pretty quickly >> meg, this morning, i read a stat as i dig in and realize it's more complicated, i read a stat more people have been vaccinated in the u.s. than have had the virus. it speaks to how quickly we're seeing this ramp i'm curious, though, and i realize there's still -- it's like a trickle of data points and i'm putting you on the spot, but pregnant women and nursing mothers. what do we know so far about vaccines and the impact on that front as well? >> so the companies themselves that make the vaccines are starting their own studies in pregnant women they'll have more definitive data there are real world evidence from thousands of pregnant women who have taken those vaccines that are on the market so far what we've heard from the folks at the cdc, they've done presentations on this. nothing that would raise alarms.

and so here in the u.s., you know, they are basically saying for pregnant women at higher risk of severe effects from covid-19, talk with your doctor about whether this is the right thing to do for you. i mean, they have to acknowledge that pregnant women were not included in the clinical trials. but they are gathering evidence around it and the welcome so far what we hear is it's looking pretty good. >> all right meg, thanks for that meg, terrell, helping us understand everything going on with pharma and vaccines not only today but for the past year plus a lot of calls to get to this morning earnings on dick's and stitch fix, including sell side names referring to chipolte oracle, we mentioned tanger, tesla and hard lines like home depot and restoration hardware don't gowa ay. ♪

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airlines set to extend the rally as the covid relief package moves closer to law. >> good morning, morgan. thanks for having me >> why your outlook on the passenger airlines, given the fact we have the latest stimulus package making the way through the house, expected to be signed into law before the end of the week and also the fact that some of the data are starting to adjust

to a greater up tick in travel by people in general right now >> yes so that's what we're thinking. i'm not -- i've said this before in our writings. i'm not sure it makes a lot of sense for the government to keep giving the airlines money until you open things up and open actually travel. and then to your latter point, the fact that we're seeing more than a million people traveling, eight of the last 14 days we've had over a million people traveling. that's pretty significant. we think by the end of this month we'll regularly be there and by memorial day weekend it will be between 1.1 and 1.4 million. we think as more vaccine gets into people's arms, there's going to be a jailbreak and people will want to just get out and travel and we think this summer is going to be really good on a relative basis, really, being good versus last year, not so good versus two years ago. after labor day we'll see what

happens. but we're not that concerned as much anymore after labor day, because we think enough people will be vaccinated that they'll still travel, and you have people working from anywhere, and so they're going to have to think about traveling maybe back to their offices, as offices start to reopen later this year. >> yeah n. i mean, to your point, i travelled a couple weeks ago. i was pretty stunned both of the airplanes in both directions were completely full. even all themiddle seats so given that fact, and given what you're expecting around travel trends in general this year, whether it's leisure or business, whether it's domestic or international, which names are best poised to capture the recovery at least initially >> yeah. so clearly domestic. right? domestically is your number one choice this year and even within the americas we think that you'll have regional travel i'm not sure people want to travel internationally, but thank you for traveling. and i think we're going to see

spirit, aave, southwest, a crowded trade at this point, allegiant, algt. those are the three top ideas for domestic, leisure, and then we like united as an outperform. if we're wrong and international comes back sooner rather than later, than united is most leveraged to international with 50% of their capacity in those markets. >> i see on the tape today, frontier is going to try again on the nasdaq. they'll go under frnt. do you expect a lot of nentrants could this be like the 90s, guys entoing into the desert and picking up crowded planes and crowding capacity again? >> this is normally the time you have new airlines startup. breeze, the airline based in utah that david yellman started got approval over the weekend to

start flying later this year you have avillo, the houston-based airline that would start up these guys can get aircraft, but breeze is going with the a-220 that's the airbus variant of 100-seat aircraft. their mission is small to medium-sized cities. it's a slightly different model. to your point, it's not so much picking up the aircraft as much as the labor with pilots on furlough, even though the government tried to prevent furloughs for airline companies, there were some because the recovery is taking so much longer than people thought it would a year ago. you have some people employed that would be looking for opportunities and breeze and avillo and other new airlines would make sense of that >> helene, i'm curious do you think it's come to an end, how is it impacting the overall delusion numbers you look at and

how do you think about it a year having passed since they started to vigorously issue and continue to >> yes as long as the fed remains what is the right word, accommodating, the airlines have no issues because they'll be able to continue to raise capital, and we certainly see that happening the way we're thinking about it is the delusion for equity holders. if we had saw previously, for an example that united was going to earn, if we thought they were going to earn $14 a share in 2022, and now we think they're going to earn $11 a share and we had $110 price target and now we would have a $95 or 100 price target the up side would be limited as you start to think about the airlines earning money right now because all the airlines are still cash flow negative and are still not earning money, the opportunity is what we think will happen going forward, and we are

valuing these stocks on 2023 numbers, but i think that some of them are actually back to prepandemic levels which makes it really hard to think about buying them now? i mean, obviously they're up on the reopen trade, and things getting better and vaccine and so on, but it's going to be very interesting to see how they trade after we get past, let's say, the next month or so. >> of course there's implications for the aircraft lessers as well. not to mention on the cargo side which we didn't get to with asg. but we will because we're up against the opening bell >> thank you for having me morgan and team. >> thanks. we will get the opening bell long tuesday ahead as we mentioned with bond supply look at futures. we're back in a moment

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look at some of the gainers. there's news around all of these which we'll get to after the opening bell for the time being, tesla is going to take the lead spot of 7% after some of the pressure and the billions on paper that musk has lost in the last couple weeks. opening lln mont n'gonywhere.me

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we mentioned the nasdaq 100. peaking in mid february. fell below the 50-day around february 23rd. morgan stanley thinks we go to the 200-day. i mean, that's about an 8% decline. the general point of view is once we lap some of the anniversaries and a 12-month momentum stock is an emergency stock, a bank stock j is going to accelerate the rotation and we'll see the consequences it

has for the major indices. >> talking about the relative fund fundamentals for cyclicals better more valuable in a terminal year as we get ready for the opening bell >> the s&p 500 at the bottom of your screen. i mentioned the tanger downgrade today. they go to sell. occupancy levels they think get worse from here not better not because the economy doesn't reopen but because retailers in their view are reconsidering their retail footprint they site the disney stores as one example which string that out, and it will have implications for commercial real estate all across the country. >> yeah. you know, it's an interesting thing when you talk about commercial real estate at this point. i venture into midtown manhattan virtually every day to exercise. it is notable how quiet it still

is a handful of office workers but nothing like what it looked like let's call it even a year ago or 2019 but the question from there, i think becomes what will it look like when we do return fully which thankfully could be fairly soon but it does appear that -- i mean, i don't know if you -- you know, i'll get to viacom in a little bit they're trying to sell black rock, the old cbs head quarters. what do you pay for a building like that in midtown manhattan these days that was on the block for a while. i don't know, carl, what you would do at this point in terms of whether we're ever going to see the levels of occupancy in some of the buildings. and then to the point you were making or about retail and surrounding retail what it's really going to look like i spoke with the ceo of mondelez, but we also talked about this issue and just sort of asking about the return to work, and the future of work and i thought he had an interesting

answer, and we're starting to see a lot more of this discussion take a listen about flexible work forces. >> i don't think we will be in an easy position to bring people back i always say it was easy to get people not to come anymore it was going to be difficult to bring them back. we want to offer people the opportunity to organize their lives in a way they want as long as they get the work done in a quality way. so if i would put a per secenta on it, maybe the remote workers are 5% i do think that another 80 % will be flexible workers and then there's going to be 10% to 50% that have to be in the office every day >> a part of our evolved series of interviews and you look at shares of monday deez. they have a lot of people in factories and making product, but the office workers, i thought that was very interesting. and you hear it more and more often from ceos.

>> yeah. absolutely and i think it also speaks to the quote, unquote, hub and spoke model. you hear more talk about how flexible work space is concerned. it shines light on some of the names we've talked about in the past and the opportunities for some of those may be newer upstart players to come in and cater to some of these more flexible scenarios as well. you know, you guys were talking about retail just before i want to highlight a name that reported earnings this morning talking about recovering, things getting back online and the return to i guess a new normal, you know, post pandemic normal dick's sporting goods under pressure this morning, too better than expected numbers 19.3%. comparable same store sales growth and yet, the outlook slowing sales are expected in this year ahead. and you're seeing that name under pressure down 4% i think it speaks to, and you can say this about vista or

other retailers more focussed on outdoors outdoors is the other area within retail that saw strength in the midst of the pandemic i think it's maybe potentially a gauge on the return to normal as well and what those winners and losers that as bob put it yesterday, carl, the rever jens within equities is going to look like this year as more things get online >> yeah. speaking of which, nasdaq here with an early 2% plus pop. it's definitely a day in which tech is going to lead and banks and emergency are going to be relative laggards in the early part of the session. a lot of media stuff i want to get david's take on. a couple things. olympics, qkioto is going to limit or bar foreign spectators at the games at least they're having a discussion about how the games will happen, not if the games will happen. that has big implications for

both discovery and comcast disney is the other story. outperformed netflix by 90% since last july. huge reopening play. i'm looking at pictures here this morning, david, of them putting some of the final engineering touches on the tron. light cycle ride and magic kingdom. these are the kinds of things we're going to talk about. >> and we do enjoy talking about them and disney, there was a time not that long ago when netflix had a larger market value than disney. and if you'd gone back a year you might have thought that would only widen but, in fact, to your point, disney now $360 billion value. and netflix which is still down almost 6% this year, $225 billion. of course, as we pointed out many times, investors have become completely enamored with the direct to consumer strategy embodied by disney plus, and are

rewarding the company for executing on it. everything else that may come with reopening theme parks and people going to movie theaters is going to be potentially additional don't hear that much about espn. the two names that captured the attention of old media investors or most short the names have been discovery and viacom. i have to show them again. yesterday was extraordinary. both are down today, discovery and viacom almost identical moves in 67 days 67 days. at the beginning of the show i was talking about price momentum versus busted momentum stocks. today it's reversing ever so slightly but i've also been asking who is buying this? listen, you can understand viacom was a year ago or let's say 11 months ago at five times

ebita. now it's about 31 times expected free cash flow in 2021 it's way more expensive than many other names in the sector and even things outside the sector but also sell advertising. is it potentially viewed as a reopening play everything i hear indicates advertising is going to be strong to the point you were making earlier about economic momentum we may get, but there are a lot of questions about what the buying is here. you have guys covering their short positions but new short positions are getting opened as well it does have healthy short interest man, this move has been unreal i can't tell you any number of current and former executives from viacom with $65 options figured they'd never see any money on them. suddenly yesterday like oh, my god. and they're trying to call whoever it might be at morgan stanley i think that runs the plan nobody can get through because

they're all calling and saying sell sell i've suddenly got a lot more money than i ever anticipated. but that's what's happening. unfortunately, never happens that c-- we'll continue to follo it closely zblim curious. and maybe not viacom as much as discovery, but i mean, we're seeing more and more streaming offerings come to market at some point there's going to be a consolidation more content coming under one umbrella i mean, is that part of the story here or no, not yet? >> not yet listen, viacom has played in consolidation conversation as has discovery, even the idea they might come together there's always been talk eventually that if at&t were to finally sort of tire of the time warner assets, would there be a transaction with our parent company spinning out nbc universal, combining it? this is stuff that's talked about a great deal we've had conversation about fox

and what the strategy will be. it's smaller with the focus on news and sports. but right now to your point, you have the proliferation of the direct to consumer platforms every name we showed there as one. and the question becomes how many can you really have fox doesn't, but otherwise, how many -- how do you navigate them when you're at home? one of the key considerations is the nfl. i'll tell you there's any number of people who say viacom, just sell some stock. you're a $51 billion company, you could sell 10% ed be helpful in terms of funding needs on the content side it has gone extremely well there for the chairman real quick to change it up entirely i want to get to chevron it's a name we've been focussed on exxon, chevron, the various moves in capital they're

employing and their efforts on lowering carbon intensity. chevron having the investor day. they did update some guidance in terms of doubling the return on capital employed by 2025 they increased the synergies from the noble transaction to $600 million and are targeting 35% carbon intensity reduction by 2028. i spoke to the company ceo about that subject here's what he had to say. >> we're seeing significant reductions in greenhouse gas emissions out of our operations. it takes breakthroughs in technology and changes in policy and offsets in other markets to develop. but i do think as we get out into that timeframe, 2030, 2040, 2050, we will be either have eliminated or be offsetting a significant part of the carbon associated with our upstream oil

and gas production >> we'll be joining me on closing bell later today as well after they conclude their investor day at chevron. stock has performed well not as well as exxon mobile at least this year which has diverged in the performance after both having rougher years last year. exxon mobile suffering more. >> yeah. it's fascinating to me to see some of these energy giants get into more of the newer technologies carbon capture as well getting a lot of attention but carl, we're going to go to you, i think we're going to get a bigger check on the markets. >> yeah. nice 1% pop on the s&p 2.5 on the nasdaq. almost 40 on the chip index. let's get to bob >> yeah. we talked yesterday about reversion. that's happening today the two sectors with the biggest correction which is china and semi conductors/technology are the ones bouncing today as we try to get stability in interest

rates. that's where the debate is to do we go to 2% on the ten-year markets are happy with right now. semi conductors, there's the smh and china, both of these with the biggest corrections because higher rates impacted emerging markets and what's the big emerging sectors this jeer banks and emergency. they're the weak group along with industrials that's sessentially the reflatio trade taking a backseat to technology and china, the big laggards a lot of the damage is done. if you look at the big cap tech names, bounces in the stuff that's beaten up the most. i'm talking about apple which was down 17 %. nvidia down more than 20 % paypal and the other software names also in deep correction territory. you get a bounce today, but my point is a lot of damage has been done. if you take a look at how some

of the semi conductor stocks have corrected in the last couple weeks since the highs mid february, we're talking about 20% declines in this group the same with the software sector again, the valuations were really high. and when you have interest rates move up, it reduces the present value of the cash flow of these companies. you get paypal, paycom, software companies down more than 20 %. a lot of damage done here's the good news the p/e ration, the multiples have dropped dramatically since the middle of february now, i know this sounds like high multiples the s&p is 22 times numbers. they were much higher months

ago. er the -- these are at levels that are much more attractive than they were a month ago and i'm sure you're going to get analysts coming out making note of that in the next couple days if these kinds of numbers hold up and we don't have the dramatic swing up in prices again that will lower the multiples. meantime, remember the higher interest rates had done a lot of damage to emerging markets since mid february, again, we've seen notable moves to the downside. china is down notably. there's the sci 500. that's 16% off the highs emerging market etf. 10%. the philippines, south korea, brazil, go down the list and look at the emerging market economies. they're down not far from 10 % meantime, europe is having the same moment as the united states we're getting a big cap rally. it's a lot of new highs in the insurance names like axa and some of the big bank names in the material names like basf, one of the biggest chemical

companies in the world that's a new high. the auto companies just like in the u.s., bmw at 52-week highs the oil companies, total, any, the big italian oil company set a new high europe is having the same moment that the united states is having new highs in all of the reopening names. even though european reopening is not quite proceeding nearly as fast as the u.s. reopening. morgan, back to you. >> that's right. but it is still proceeding i'd note the gain in the nasdaq composite, we're positive, barely on the year now bob, thank you it is time for the bond report with rick santelli for that hi, rick >> good morning. indeed, right now we're looking at long dated treasury yields down a half a dozen basis points in tens and 30s and globally, if you look at the higher quality, you see the same dynamic and the

same pattern, maybe not in exactly the same levels. you see the intraday ten open the day to a three-day chart. this is important because yesterday 161 high on friday a 162. now we're giving up ground here's what's fascinating. right now as we sit around 153, that is the february 26th close, that was fed day, and that's really an important level, because ten years broke through that end of february level many other sovereigns have not so if it holds here or not on a closing basis, it could be significant. of course, the big talk, you even heard bob talking about multiples and nasdaq the nasdaq is really taking it on the chin, and the poster child for all of this pricing torture is the ten-year u.s. note now, let's put a february 1st chart and put the said antagonist on top of the protagonist and let's see what it looks like. what i see is right around 135 is when the biggest defects of

the ten-year seem to have happened to the nasdaq what do i remember about 135 that was the time we were starting to close above what had been the double bottom in 2012 and 2016 right around the mid 130s once you start to close yields above that level, you made many nervous about what the future may look like and u.s. ten-year rate, a corrupted rate, but it is a global rate all eyes focussed. it helps to explain a lot. the dollar index was a surprising run of strength that started in about four weeks ago. if you look at a one-week chart of the dollar index, today is one of the days it seems to be taking a rest and finally, august 1st chart, right around 92 plus is where all the resistance will be we might be at a top of the range at the moment. carl, back to you. >> all right rick, thanks we'll see you later today. take a look at the s&p here. up 51 points nasdaq up almost 2 .6 % as

morgan said, green for the year once again although, it's only the biggest rally since last monday when it was up 3%. we're back in a minute it used to be that brainstorming required a whiteboard and squeaky markers, but when you have devices that let you collaborate in real time from anywhere, the future works better. microsoft surface devices with teams,

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way since the pandemic began back in march of last year almost a year ago. a look at the road ahead for the nation's largest banks and what will the look like. >> let's review the extraordinary rally. the bank index up 115% from the low last march the sector collapsed from and then rebounded to surpass its january 2020 high in the space of just 14 months. why was that firstly, crucial regulatory and legislative relief for them and their customers meaning we are likely to only see temporary accounting costs due to pandemic rather than permanent cash losses market volumes and levels have boomed thirdly, economy and inflation are expected to rebound creating

a staeper yield curve than we have had for a couple of years looking forward, a few key things to note banks have been able to embrace work from home with at times 95% not in the office p but there is a sector reticent to depart from office life in full in the long term goldman sachs's ceo saying recently of work from home, i think for a business like ours, which is an innovative collaborative apprenticeship culture it this is not ideal and not a new normal it's an aberration we are going to correct as soon as possible secondly, buyback, one of the key drivers of performance i recent years, are appearing less attractive for the simple reason stocks have run up so much m&a and consolidation. and the fight with fintech, jamie dimon saying i expect to see very, very tough brutal competition in the next ten years, but i expect to win, so help me god. we'll see how that plays out going forward, carl. >> yeah, fascinating chat with

you and the squawk team earlier about how fintech is going to play in that, too. will, thanks nasdaq is up 350 we are back in just a moment how do we ensure families facing food insecurity get access to their food? we needed to make sure that, if they couldn't get to the food, the food would come to them. we can deliver for food banks and schools. amazon knows how to do that. i helped deliver 12 million meals to families in need. that's the power of having a company like amazon behind me.

a few moments ago, the nasdaq was officially down 20% from the high. that would put it on course to close in a bear market. >> i think that's certainly a realistic thing. >> we knew we were going to start looking at some of these anniversaries, but that's march 9, 2020, a year ago. i saw other screen shots this morning later in the session where things got truly ugly with the ten-year yield at h44 basis points that is hard to believe it's been a year. >> it is yeah, ary and a lot of people would say, i think, seven years, right, in that year. and yet, yeah, listen, you go through so many different things when it comes to the outcomes and the equity markets, i think if you told somebody this is

where we would be a year later, they certainly would not have believed that was even possible from those lows. you heard the banks, for example, the incredible move we have gone through so much the new cohort of retail investors who are actively engaged in the market in a way they may not have been previously so many unexpected events and so many things we are still going to need to fully understand and wrap our arms around yet to come >> yeah. just as you say it, david, gamestop's up 15%, back to 225 the next hour of "squawk on the street" continues in a moment. don't go anywhere. we made usaa insurance for busy veterans like kate. so when her car got hit, she didn't waste any time. she filed a claim on her usaa app and said, “that was easy.” usaa. what you're made of, we're made for. usaa. ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming.

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♪ good tuesday morning another hour of "squawk on the street." i'm carl quintanilla with david faber and morgan brennan tech is definitely bouncing here nasdaq up almost 400 points. that's a 3.2% gain we are now looking at the best day for the nasdaq since november 4th as some oversold conditions are getting remedied. our roadmap begins with roaring

back the nasdaq after sinking into correction territory yesterday we will talk to goldman's about the market volatility. >> and the state of commercial real estate despite the work from home boom we will check in with a ceo who says that offices will fully recover. >> and tesla, is it back on track? shares are up sharply in the early session. still looking it to recover after a rough week of trading. carl. >> all right let's get to this rally. dow's up for a third straight day. we mentioned the strength in the nasdaq goldman sachs chief david coston does join us to talk about what we've been through the past couple of weeks and what today may mean david, great to see you. thanks for being with us. >> thanks, carl, nice to see you. >> i've read your notes, but i would love you to verbalize your thoughts on that rate scare and the degree to which you think flows are, i guess, a net reassuring dynamic >> well, carl, i think the way to think about the equity market is through the lens of the bond market and we want to think about

duration and the average time in the future, the cash flows for a company and the bottom line is when rates are rising, shorten the duration in a bond portfolio. same thing for equities. that benefits the cyclical companies as compared with these longer duration technology stocks in general, and so that's, i think, explains to us the significant rotation, if you will, out of technology and particularly the longer-term secular growth companies into a more cyclical type of markets. i think that has been the story in the last month. >> does that mean that the rotation out of high multiple tech names is mostly done? >> well, the question is, on a either day-to-day basis or today is a huge recovery and rally, if you will, in nasdaq in particular, but the issue really is what's happening on the margin we have huge fiscal stimulus coming, likely to be signed in

the next day or so we like to have very significant improvement in the valuation process -- vaccination process that really does benefit an improvement of the business fundamentals for some of the near-term more cyclical-related stocks in the recovery trade, if you will if longer term, technology, secular growth, those are tapping into some of the evolutions in what's happening in the economy, but near-term, tactically, it's likely cyclicals, carl. >> david, we have more direct checks going out to at least some americans, expected at some point in the next couple of weeks. we certainly know there has been thislize in the retail investor and some of that previous stimulus money has made its way to the market. what are your expectations now >> morgan, you tap on a key issue, which is where is the demand coming from, from investors, broadly speaking, to push the market higher a lot of the stimulus checks

will be spent, but from a household perspective, that's the key source of demand as we see it to push equities higher in 2021. so that puts some numbers around that, around $5 trillion that are in money market mutual funds right now. it's been coming down since the start of the year, and the issue is how much more will that shift, those assets shift from money market funds into other asset classes. and typically, when bond yields are rising, that is the experience you have the fundamental data which suggests that you get flows coming from cash into equities, and that's a big story. we think there is more than $350 billion likely to come out from households and shipped into equities i think that's a big story, not so much the stimulus particularly, but the higher rates, real rates and inflation expectations that history would suggest that's increased demand for equity shares and i think that's going to be a key story this year. >> we have seen this rally in

international stocks we had a number ofguests on wh talk about emerging markets. as an emerging investing opportunity right now, how do you see it is the u.s. still the best, or are there other opportunities out there that need to be considered, especially when you are talking about value as the new momentum play? >> right so from a value perspective, certainly the international equities, say european equities as a starting point for the moment, that is always been a lower multiple universe, the index, because far less tech, 7% of the european index is tech compared with something in the vicinity of 20, 25% in the united states. there is much less tech, much more cyclical type of business activity but really the fundamental economics here in the u.s. much better rollout in the vaccinations, big fiscal stimu stimulus i think that benefits some of the rally in the u.s i think from a risk-adjusted basis, risk-adjusted returns, morgan, suggest the u.s. is the

better, if you will, return, prospects. but the flows have been remarkable in terms of the power of money going into non-u.s. stocks so that more than $100 billion in the first two months of the year go from -- into non-u.s. oriented or global or international-related mutual funds, $60 billion domestically. so a lot of flows in the u.s. moving internationally, less expensive stocks looking at the weaker dollar. so interesting opportunities overseas but i think risk adjusted, it's still here in the united states. >> david, i know you spent a little time writing about spacs lately it's funny the show usually doesn't go an hour or mo long without us talking about it to the extent we look at them and their buyer power and influence in the market and/or the companies that are being taken public, give me some feel and i am curious what kind of questions you get from investors about it.

>> huge amount of interest and focus on questions about spacs a couple numbers around that, there have been already this year, you know, a huge number, more than almost $60 billion of new equity capital has been raised in the spac world that is on pace for this year we will be exceeding last year's total by the end of the march. five deals a day are being pic the amount of new issuance is significant. you are looking around 320 portfolios, if you will, of spacs, david, that are out looking for acquisitions, probably 180 or so deals in registration so you are looking, let's put round numbers on that, 500 deals capital raised in spacs looking for acquisitions and i think that that is a key story that has been developing, the amount of capital that has been coming into the market in those areas. you are seeing lots -- the real story coming back to the carl's question about duration, not the

duration, the way i answered the question, the longest duration investment is some of these spacs because a bunch of cash has opinion raise inside a trust and they are looking to make an investment in many cases longer-term, really almost like concept stocks that don't have a lot of cash flow necessarily near term, but have big growth prospects in the future. that's a fundamentally a duration trade so that's an interesting dynamic, david money is coming in and shifting towards longer-term stocks >> yeah. but, david, you have written repeatedly that at least the pace of spacs and the way in way they are soaking up ipo volume is not sustainable have you clarified when you think that non-sustainable trend comes off in. >> well, the idea of investors loo looking for an opportunity set, it's about rates that idea of pushing fed pushing rates to zero effectively has meant the opportunity cost of

investing in a spac versus owning cash is quite minimal you get your stable value. it's in a trust, so you have the cash value, say, $10 a share you have your opportunity set to have the warrant and you have your put option, if you don't like the deal. so as long as rates stay pretty close to zero, the trend towards sfaks is likely to continue. the opportunity set is very significant. for many, many years you had a diminution in the number of publicly traded companies in the united states. now we are starting to slowly to reverse that as i said, about 500, probably in that vicinity, of new transactions are likely to be effectively in the public market so we are moving back towards the ability to access capital and this retirement is pretty attractive rates are low, and there is a lot of private business that are looking to tap in to permanent-related capital, especially thinking about where the anniversary of what happened last year. you know, the idea of solvency

and liquidity is something on the mind of a lot of private companies. >> that's such a key point, david. we were just talking about a year ago today what the market action was like and maybe there is this new sense that it's good to have a large rainy day fund we got to run. david, great set of notes the last couple of weeks appreciate it. >> thank you. meantime, the house is preparing to pass that $1.9 trillion covid relief bill. ylan mui has the latest for us. >> well, good morning, david the house will begin legislative business at noon, and it's unclear if there will be a final vote on the covid relief package today. democrats are still hoping it will happen as they try to finalize paperwork from the senate but house speaker nancy pelosi has said that she is determined to vote by tomorrow morning at the latest now, the goal is to make thsure that president biden signs this bill before the week is over so critical unemployment benefits don't run out.

there is little doubt that the $1.9 trillion in covid relief will become reality and democrats are ready to start touting the benefits of the package. one of the key pieces they are highlighting is the $350 billion in state and local funding top administration officials, including vice president kamala harris, spoke at the annual gathering of the national league of cities yesterday, and later today peloton and chuck schumer will addressthe group as well along with treasury secretary janet yellen while many states say the revenue losses have not been as dramatic as feared and some have seen revenues go up, employment has not rebounded. state and local government jobs are 1.3 million lower than a year ago most in education. now, tomorrow president biden is slated to meet with a small business owner who got a pp loan he will mark the anniversary of the pandemic lockdown. so, we will see if lawmakers can get the bill to his desk by then back to you. >> busy couple of days

thanks for bringing us the latest. a check on tesla it's rallying in today's trade, up 9% with ark invest cathie wood telling cnbc yesterday she believes the stock is analogous to apple we have a big show still ahead on "squawk on the street." so don't go anywhere ♪ if your money is working toward the same goals, why keep it in different places? sofi is a one-stop shop for your finances- designed to work better together. spend with sofi and get cash back rewards that automatically go toward your goals. like investing in stocks, etfs, and crypto. that's better together. or pay down your sofi debt sooner. that's better together. and that's how sofi is helping millions get their money right. ♪ ♪ ♪ ♪ ♪ - [narrator] if you're thinking about going to school online, southern new hampshire university is where you belong. we've been online for more than 25 years

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welcome back call it the reopening trade. the cdc revising guidelines and new vaccine data versus variants just what it means for the travel sector. that is the question we are asking this morning. here to discuss is steve hathner. i want to get your outlook on travel and leisure as we start to see more inoculations make it into more people's arms, see some of that passenger air travel data show signs of rebound right now, too what are you seeing? >> we are seeing that. the macro trends are finally favorable for all of us in the travel industry. but we are still, we have a long ways to go i think the cdc recommendations are great for private gatherings they don't extend to public gatherings yet like being on airplanes. as a result, i think it will take a bit more time, a lot more americans getting vaccinated, which i hope they do, before we see travel demand really come back but here in miami beach, for example, based on kayak data, we

are only down 24% from pre-pandemic levels. new york and other places are down 70% so it is in the right direction, if you will. >> yeah, that's interesting to hear you say that. i was -- that was actually my next question, is where are we seeing the growth, i guess, come back the strongest right now it sounds like at least if you are talking about miami beach, there is a correlation between those economies, those states that are more open versus the ones that still remain pretty, dare i say, locked down? >> yeah, that's been true throughout the past year of the pandemic the places where consumers can go andtali do stuff tend to be more in demand than those who can't. you have to remember there is a dichotomy even with domestic versus international so overall domestic markets are down 50% the markets that are open are down 25% international markets are down 70%, which a lot of them being down 90% like france, for example, where you can't even

to >> i was going to ask about international. france in particular, you have these governments that have struggled with the overall trajectory over time, supply of the vaccine in the eu is challenged relative to the united states, and yet you are looking at capacity on airlines filling up fast. i mean, what do you tell a consumer who is hoping to do a european trip in july or august? >> well, i think the most important thing for consumers to do is make here you are getting a flexible cancellation policy on whatever you are buying please go ahead and go on kayak and other sites and look because it's fun to think about your travel plans, but, gosh, make sure you have a flexible cancellation and buy your travel insurance. because these resurgence, as we learned the past year, can change very quickly and you don't want to be out lending money to an airline for free, for example. >> right are you seeing signs that, if

things go well, that governments are well coordinated in creating some kind of universal passport that would document your vaccination and allow you to get through borders with minimal friction >> there has been a lot of groups looking at that so both independent airlines, travel suppliers, sconsortiums and governments, too it's tough to coordinate i think what will likely happen is we'll get positive signs on hospitalizations and, most importantly deaths, and that will lead folks to loosen restrictions quickly that will probably happen before we have a vaccination or a health passport that people can use. that stuff will take time. i think that stuff will come into development, which will be very useful for the next pandemic should it occur in three to five years. >> steve, you know, we have talked about the resiliency of home sharing and home rental

platforms like airbnb and the like you are in miami beach because kayak is launching the first hotel there. why get into that market, and i guess how much of a bet, how does it speak to the fact that you are betting on a rebound in hotels specifically? >> thank you we are very excited to announce the first kayak branded hotel here in miami beach. it's going to be a great place to stay. it's 52 rooms, access to the beach. the reason we are doing it isn't because we want it to be a new hotel brand. it's to help reimagine the guest experience and bring the power of the kayak app and tech-savvy with along with the insights of our hotel partner life house to the independent hotel space. imagine using your phone to check in, check out, message housekeeping, request room service, that kind of stuff. these are things that big chains have been doing for years, but the small independent properties, you know, the airbnb type properties of the world don't have access to that.

so kayak in conjunction with life house, which is running the hotel on our behalf and has a lot of experience in this space, have built that software stack for independence we are very excited about the launch of our first property and where it goes from here. >> just, gis, final question as we see this reopening really start to take root in a more meaningful way, are there certain ways that travel and the way people are going to go on vacation, that they are going to change and change for good now >> yeah, i think there is going to be a much more durable change in consumer behavior around using technology and being open to new places to stay, new places to go but i think overall, demand will come back, i hope, very strong on the leisure side. i think business travel will take a couple years to get back. >> we will see thank you for joining us today.

>> thank you always a pleasure. let's get to the "etf spotlight" now checking in on the s&p retail etf the ticker there the xrt it is up today, and up about 140% yeah, that's right over the last 12 months. one name that is not participating in this morning's rally dick's sporting goods, falling despite beating analyst's estimates. they warned of slowing sales as it faces tough comparisons they had strong demand for items early in the pandemic like working out stuff. man, you couldn't find anything if you wanted to lift weights or do pull-ups. democratic's w dick's was all o, carl. >> it's so true, david. >> we'll be right back ick's was. >> it's so true, david. >> we'll be right back ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪

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extending yesterday's gains. was looking at 15, 16% gains 21t 6.23 we'll be right back. ♪♪ ♪♪ ♪♪

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welcome back i'll rahel solomon your cnbc covid update at this hour for the second straight day new u.s. covid cases below 50,000. that hasn't happened since early october. for the second straight day covid deaths fell below 1,000. first time that happened since mid-november a european union source tells reuters that johnson & johnson is under stress to meet its target of living 55 million covid shots to the eu in the second quarter the source blames shortages of vaccine ingredients and equipment. j&j declined to comment to reuters. and a first for a new country italy signed a deal to produce russia's sputnik 5 vaccine they hope to make similar arrangements with other european

nations. apparently annoyed by a question at a news conference, prime minister of thailand spraying the front row of journalists with sanitizer as he left the room he has been known to be irked with reporters that's a different way of evading questions. >> keeping everyone clean. that's important, too. thank you. a new cnbc morning poll showing 15% of americans feel it is very safe for the u.s. to start reopening, while 39% said it's somewhat safe despite many still work interesting home, our next guest thinks the office can make a full recovery. brett white the executive chairman and ceo ofcushman and wakefield. a conversation we have been having now for almost a year and i know when you talk about full recovery, you are not talking about today or even tomorrow, but i do wonder, in speaking to ceos, this anecdotal, but there are plenty of them, they are talking about

flexible work schedules for their employees. not necessarily that they all want to work remote, but they want that flexibility, which would lead me to believe that you are always going to have a certain percentage that are remoat and, therefore, will not fulfill your prophecy that they will be back to full. >> it's a fair point i think we are both right. let's use some definitions here. pre-pandemic and, david, we have spoken about this before, pre-pandemic, about 5% of the work force was permanently at home we think that will double, maybe a bit more than that, to 10, to 12% of office workers being permanently at home poefrt pandemic pre-pandemic we think that something like 30% of office workers were allowed to work from home, a day a week, perhaps a day and a half, two days a week we think that will close to double to 50 to 60% post-pandemic. but that, so that work from home element at the margin, not a big

number, that agile work force element which is a big number, those are the down drafts on office sustainability and occupancy of office. we also, don't forget, had a wrench in recession. we had 3 million office workers laid off or terminated in march and april last year. 1.8 million have been rehired. if i am an agile worker, if i can work home two days, three days a week, that doesn't kneesarily mean my employer can eliminate nay space, my desk unless they say you can only come in monday and friday, or you can only come in tuesday and thursday, i still need space when i get there so we think that static kind of same store by store office tenets will reduce their footprint 10%, 15%, maybe as much as 30%. the big mitt fwant is the rise of office employment, which we're already beginning to see

that rise in office employment mitigates fully over the next three years. that work from home piece and the agile working piece. >> the overall addition of working. >> that's right. >> when i come back to this idea of companies increasing their space, you know, it may be different workers who were working from home or not, but the percentage will be the same. you could have arrangements where you go online and say i am going to be in and you get a desk it doesn't it necessarily have be that your employer has a specific place for you to go every day. >> correct and think yfor most employers, look, the dynamics in the office workplace haven't really changed that much. every employer, every company sees office rent as a fixed cost they want to reduce. so we're always trying to find ways to be more efficient with the space. we also have to have environments the employees want to work in, attract people to the companies, retain them because work environments are

attractive what's happening here is there is going to be a larger percentage of the work force told you don't have to be here every day. you're right a lot of employers should and will think of creative ways to use their space more efficiently and that's going to be a drag on occupancy, we think 10, 15, 20% drag on occupancy. that gets mitigated in the type of economy we are looking at now for the next two or three years, that gets mitigated by the end of 2022 by new jobs. the easiest example, think of midtown. facebook has leased over 2 million square feet in hudson yards over the last 18 months. they are not coming from downtown it midtown. some are these are new office workers coming into midtown manhattan. that mitigates a love existing users who will cut their space back because then be more efficient. >> that's interesting. the journal did a piece last

night about what they are calling zoom towns, towns where the influx of new workers rely heavily on digital tools fresno, boise, greensboro, north carolina if you're a ceo of a large company with some money to spend on real estate, would you do it at hudson yards or do it in boise? >> great question. facebook chose hudson yards. alphabet has chosen where they are. amazon chose northern virginia and other hubs and other companies that have a certain demographic in their work force can be for more creative about where they allow employees to work. i think, carl, it's really dependent on the industry you are in the if you are in tech an you have engineers that can work anywhere and they want to move from the peninsula in san francisco to boise, that's probably fine. by the way, you may reduce their compensation a little bit. you may want them to do that but most services firms don't work that way.

when you think about big services companies, they tend to be located in larger cities because that's where their clients are. no doubt about it. there are a lot of people over the last yearwho have the ability to move and did. >> brett, we are talking about office space and commercial properties, but i'm curious what you think about housing right now in general, especially when you have a jones lasalle taking a minority stake in roof stock which is focused on rental homes. is that something that you would be considering at cushman wakefield seeing the pockets of strength versus areas where recovery is still nascent, to say the least? >> brilliant move by them. i commend them for a very smart move in the marketplace. what they have done is, that is an asset class that is now viewed on the same table as a place to allocate as are -- and a great question, morgan, office buildings, retail, multifamily, and now homes for rent

so looking at that as another place to put our clients' money to allocate capital, absolutely. rental homes is a terrific asset class to be invested in right now. there are a very, very smart people who are have made major, major bets on that asset class it is very attractive. i think the demographics we have seen extant in the marketplace now for eight years have supported homes for rent very, very well. >> finally, brett, judging from what i'm looking at out your window there, i think that's 30 rock. >> it is. >> i go there every day to swim nearby, my pool. i am kind of shocked at how quiet things are there still it's a year. to you find yourself surprised at all at how few people hav truly returned to the office at this point, and does it in some auger for perhaps not, you know, not fulfilling again this idea that people will finally come

back >> david, i give you two answers to that. the first is, regardless of vaccine deployment, regardless of stimulus going in the marketplace, we don't see a real return to the office until post-labor day i think what's going to happen, it gets me excited, i think a lot of people will start traveling this summer, see their grandparents, their kids, do the things they couldn't do for the last year. when i look outside here at 30 rock and how few people are on the streets, one of the things that i know is that most companies have just pushed this off to september the other thing i'll say, and it's a striking dynamic in new york, new york is somewhat unique right now of the cities that i have been into in the united states, i have not been outside the united states, new york is the least occupied downtown for lots of reasons. public transportation being a scary thing. people can go to the suburbs a lot of reasons why new york is

quiet. i was august around last night after i got in it's sad and it's very quiet here but it is a bit different here than a lot of other cities in the u.s. where people are occupying their businesses or offices at a bit higher percentage than they are in manhattan. manhattan is running right now about the lowest occupied office square foot percentage of any major cbd in the country you feel it when you go to 30 rock and when you walk down the street that will change. >> i can't wait. brett, always appreciate your taking time. thank you. >> thanks. >> let's stay with real estate right now. robert frank is looking at banks. was that me or you supposed to read that? >> it was me go ahead. >> do you want to finish it? i think robert would prefer. >> looking at banks moving to florida. we do talk about something like manhattan, you have to include the fact that a lot of people are moving out of manhattan to

go south to florida. >> that's right, morgan. thanks private banks are follow the money right now, which is increasingly moving to florida florida already home to about a half a million millionaires and 40 billionaires. wealth management firms saying those numbers have grown faster and will continue to grow since the pandemic merrill lynch wealth management has 20 teams in florida focusing on clients with more than ten million to invest. it plans to double that number to 40 teams just in the next few years. bank of america private bank adding over 120 new wealthy families as clients in florida since 2017, that's up 60%. you have jp morgan private bank, they have six offices in florida right now. they are going to open two more with plans to double its dlient pacing skriezers in the coming years this is driving up demand for private bankers in florida and causing fierce competition for talent

ubs, which has a big presence i florida eb serve international clients, they have a second team from wells fargo this is all being driven in large part by taxes. unless you move both your banker and your bank accounts to florida, you can't claim tax residency and pay no income taxes. bankers say, in fact, much of their job right now is helping the wealthy that have just moved to florida with their audits from other states. so, guys, what's key here is tyo have to have custody of your investment accounts and your bankers in florida to claim that no income tax residency in florida. that's driving a lot of the banking growth in florida. >> that's fascinating, robert. thank you. robert frank taking a look at what's happening down in florida. getting breaking news that might have impact on zillow group. we will get to eamon javers. >> yeah, carl, that's right. we are seeing now a new lawsuit filed against zillow, the online

real estate company rex now suing zillow and the national association of realtors alleging anti-competitive behavior and accusing the two entities of being a cartel effectively rex accusing them of joining a cartel with the national association of realtors saying zillow zwroind to conceal all non-mls real estate listings on sfwlil o's websites behind a tee fault tabatha they have a problem with on zbril o's display. they say rex's listings are losing significant traffic as a result that have and they allege that the national association of realtors is preserving sky-high real estate fees i talked to mike tim scott, the general counsel of rex yesterday about this, and he explained what he says the national association of realtors is doing wrong here take a listen. >> they brought the biggest real estate aggregator, the biggest portal site under the tent and it caused, from our perspective, what we're concerned about, it

caused zillow to segregate these listings from companies like rex, which are operating independent of these old rules at more competitive prices and it put them off to sited of the platform in second-class status where consumers wouldn't see them >> so, morgan, what rex is saying is that the real estate industry, all those commissions hasn't been nearly as disrupted as a lot of other industries have been by technology. they say they want to be that disrupter. we will see if they can get any traction with this lawsuit and we will reach out to sfwlil owe and also the national association of realtors now that the lawsuit has been filed and bring you any reaction from their side of all off this as well back to you, morgan. >> sounds good eamon javers, thank you. shares of zillow up 2.5%. as we head to break, take a look at the biggest gainers on the s&p. led higher by tesla, up 11%. other names like etsy, enphase

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a top economist warns pent-up consumer demand will have an unexpected shelf life. adar more from stephen roach at tringnation.cnbc.com more "squawk on the street" ahead.

welcome back to "squawk on the street." i'm dominic chu. markets roaring back after yesterday's bigger tech losses check out the s&p 500, less than 2% away from the record highs back on february 16. the nasdaq composite 8% below record highs on that same day. tech k technology outperformers the consumer discretionary sector outperforming those gains though, led by tesla, etsy, chipotle, ebay, each up 5% or more at this stage keep an eye on amazon, far and away the biggest influence on the sector, around 14% below

their record high from september 2nd of last year david faber, back to you >> tesla exceeding a $600 billion market value yet again. thank you. anti-virals, well, they could change the game in the continued fight against covid. how chose are we to having these drugs? meg tirrell has that story for us meg. >> hey, david. well, of course, we have done a lot in terms of development new medicines and vaccines for covid over the past year three authorized vaccines in the prevention setting we have antibody drugs early in the course of disease, all thee they could be complex to access and administer for hospitalized patients you have drugs lick dexamethasone. gilead's remdesivir. but there are anti-viral drugs that would be a new class and dr. fauci in an interview with us told us why these would be so helpful. here's what he said. >> we need the same sort of thing that we have with hiv and

that we have with hepatitis c. we need an oral drug that potently can suppress the virus. i believe strongly that we will get there. question is, hu quickly we'll get there. >> so there are a few of these already in late stage clinical trials merck's merck's, that's in a phase 2 trial with interim data potentially expected this month. seeing if you could matake a pi. and similar drugs in phase 2 pfizer has a very early stage oral anti-viral drug which hasn't begun human trials yet. we talked with n herd ih resear matthew hall about the hope for these drugs. here's what he said. you'd like to be unwell or test positive and not feel unwell, take a pill for five or ten days

and get on with your life. >> wouldn't that be great, guys? we are waiting for the results of these but that is the hope over the coming months. we will see some of these work. >> as you say, that one in particular given my relationship with ridgeback and the founder, i have been following closely. merck's stock price perked up the last couple of days, perhaps in part, i don't know, on hopes for it i mean, the expectation is should it actually have very positive phase 3 that nations around the world would start to stockpile it again because it would be very effective in bringing the virus to a halt within five days and there is an expectation that regardless of how many people get vaccinated, the virus is still going to be circulating regardless >> yeah, absolutely. so there were some data from the merck molecule and the molecule out of a medical conference, both positive for the merck drug

suggesting it clears the virus compared with placebo. we haven't seen all the endpoints of the trial and in terms of the, you know, the opportunity for the companies working here, it's been compared with tamiflu after h1n1, the stockpiling that might happen by governments. experts told us that even with vaccines, there will be people who can't get vaccinated they will be need for these drugs to be able to help folks and if we get work on them going now, they could help with future viral threats. it's good to have this work ongoing. carl. >> yeah, that's such an important story. well told with your help and david's. thank you. bitcoin this morning climbing higher again in today's trade. we are once again above the $1 trillion valuation as well. market ral cties 'lbeig back.nu

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space launched the first contract facilitated to help to strengthen national security this is another space startups

for investors to keep their eye on, joining us, co-founder tim ellis. tim, welcome to "squawk on the street". >> great to be here. >> so let's talk rockets the diu chose relative for quote responsive access to space capabilities we're talking your first rocket that has been developed or is in development, it's almost 3d printed. when will you get that into orbit? what's the game plan >> well, relativity for the entire rockets so actually here in long beach, we're holding the first entirely 3d independent rocket. that's one thing to orbit at cape canaveral at the end of this year. >> yeah. you have also announced in the last couple of weeks, plans for another rocket a more powerful rocket as well >> that's right. we are also building a falcon

95 so really when looking at aerospace for the last 50 years, they haven't changed every factory is still building products one at a time by hand with complicated capex with millions of individual parts the 3d printing is a relativity pioneering for a full rocket we built the largest 3d printers we actually design our own rockets. we are building a fully 3d printed rocket platform as a factory. not just the rocket we will launch forward you have nine signed for already and building that fully reusable rocket with a long-term vision of one day building products and rockets on mars. >> yeah. your company has been a fan favorite among the community because of the space plans and because of those 3d, those added

manufacturing capabilities as well, just last week, somebody you used to work at, at blue origin, jeff bezos is touring your factory of the future 2 talk to us about what future investment in the country can look like and why someone like jeff bezos would be making a visit. >> yeah. of course. we've raised nearly $700 million to date. including a 100,000 last call we raised from tiger fidelitys and other leading private investors. so what's fantastic about that is we are able to stay private we have been able keep our heads down, building a rocket and blue origin as a propulsion engineer that started the metals division there. so that's really how i got into rockets plus 3d printing i saw everyone was doing bits and pieces, when the reality is

hundreds of thousands of individual parts so doing an entire rocket from the top down, like doing it with relativity is more going from internal combustion engines and gas architectures. their on-premise service to cloud. what we are building is really the future tech stock of aerospace starting with rockets. >> it's interesting to hear your comments about staying private because we have seen this growing class of space startups going public via spacs i wonder if that is something you are excited about and could be in your future? >> yes, certainly lots of enthusiasm and investor alignment with the space company is great overall, people are doing stocks, we chose to stay hyper funding on last fall that really let us be heads-down and not have the visibility of being public today but certainly, there's options,

you know, out there and things that will push you in the future as we keep growing >> all right tim ellis, thanks for joining us >> yes, thanks for having me sure still to come this morning, an exclusive with dropbox ceo drew houston, with the nasdaq up almost 400 points, "squawk" ali begins in a minute and in an emergency, they need a network that puts them first. that connects them to technology, to each other, and to other agencies. that's why at&t built firstnet with and for first responders the emergency response network authorized by congress. firstnet.

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