dom. have a great weekend we will look quickly at the overall market and the boards, the s&p is down only 15% and the dow is up only by 54 now, swung all over the place from flat line to up 90 to up 56 and nasdaq down by 201 guy, we will be back here next week right now, though, it's time for "squawk on the street. have a good weekend, everybody good friday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber and mike santoli, cramer has the morning off. coming off record highs for the dow, the s&p, the russell, the transports, big tech looks to give back some at the open here as the president addresses the nation last night with a blueprint to have all adults eligible for vaccine by may. our road map will begin with some of that tech turbulence, the nasdaq continues with a volatile week, and rising yields applying some pressure. >> plus as carl said, president

biden directing states to make all adults eligible for the covid-19 vaccine, we will give you the date and the details. >> and also we will have an exclusive with at&t ceo john stankey, ahead of the company's investor day i begins shortly and thank tally, carl, we get him even more shortly. >> that will be good so much to get to. and i was just thinking, here we are on friday, and if you're a reopening bull, this week sort of had it all. covid progress, vaccine progress, central bank support, obviously stimulus, as the treasury secretary says those checks are going to start to come out this weekend. >> yes, without a doubt. and that's been the dominant tone, the big theme in the market, and the market is really not waivered from that for months and basically saying, you know, it's not in the analyst estimates for consumer-driven and industrial companies we'll see if that is the case or not. and then in the mix, mixed in with it this week, we have the

thousand point rally in the nasdaq composite, from last friday's morning low, and that is basically what you did, almost 7%, and this hyper sensitivity that we have with the nasdaq and the growth stocks, to treasury yields, it's almost becoming a bit of a caricature itself i think in terms of the tick for tick type moves and it shows that the yields are moving up for the same reason that the nontech stocks are moving up which is people trying to price in this real acceleration of growth that we're all seeing, it's all spring-loaded and right there ready to go, and one of the kind of negative side effects of that, for parts of the market, and the nasdaq, too, has just risen up to a level where is basically, it's kind of, is it just a bounce because it was so washed out, or can be basically participate fully in whatever happens in the next phase of the market and that's not really sure because it kind of came up to a a-day average and it still looks like it is in kind of in a down trend, carl. >> indeed.

you know, david, it's interesting, ft's got a piece basically arguing that the bond market is counting on this inflation spike to be short-lived, based on short-term scarcity, and we got a lot of obviously the producer price index number today, getting some attention, but you know, there's still this case out there for tepid long-term inflation, deflation in apparel, deflation in financial services, deflation in energy, and we're going to wrestle with that for a while. >> i think a long time and keep an eye on the 10-year year, as we move into the summer and as we get a better sense of gdp and get a feel for how hot this economy is going to be as we fully open up as per the president, perhaps as soon as let's call it july, where things are returning to full normalcy, at least, right, in the backyard, having a barbecue july 4th and inside without a mask on with your friends so the question will be, how big do we

really get close to that 6% or more gdp number that people are talking about? i don't know you know, this is far out of my area of expertise in terms of, mike, whether we really see significant signs of inflation but i do know, and wonder whether we'll continue to see the outperformance of some of the groups that have come to the fore so far this year, whether energy on the course of what is happening with inflation and oil, whether it's the banks, on the hopes i guess of a steepening yield curve which has been incredible performers or whether we revert to the norm. >> basically, the inflation story is literally everybody expects there to be, because of the statistical reasons, this, what looks like a surge in inflation in the next couple of months or quarters, and then the question is, can the market kind of trust that it is just, you know, kind of a fleeting period, as jay powell will be saying and has said and as all economists are pointing to, and right now, the priced in inflation expectations of the next ten

years is above 2%. 2.3% if you look at the bond market and it doesn't necessarily tell you where what it is going to be, just because the market is positioned in that way it is not necessarily a great predictor of what manifests in terms of inflation. so we obviously don't have any way of seeing through that, or carl, what it would actually mean for equity multiples for the sectors that have led and left >> speaking of narratives, guys, that are pivoting in some ways, interesting piece this morning in the journal, on tesla, essentially arguing that their grip on the market, their sort of uncontested domination of a nascent e.v. industry is getting challenged here, they point specifically to ford and the mustang mack match-e, which has begin to move into market share and the top-selling e.v. in europe and the detroit free press did a story about a tesla owner who bought a mach-e, the

mustang, drove it across the country and for the hometown paper was pretty complimentary what ford has put together so we're going to watch that. >> we talk often about the potential for competition for tesla, and what will be growing choices for the consumer, in terms of e.v., of all sorts of different models, from automakers that have been around for a very long time, ford, and gm and the others as well. mike, i don't know, you follow tesla every day, as i like to point out, i think you're forced to comment on it in some way given its importance to the overall market and to the tenor but we talk about that a lot and yet the analysts will come back and say they're the leader in battery, they control so much of their own supply chain to some extent, and they're growing around the world, and it's not just about a play on e.v it's a play on so many other things. >> that's right. and the vertical integration, and the sort of better house trap in terms of manufacturing and direct selling, all that stuff, without a doubt

the problem is that the stock price built up such a massive premium, relative to what's happening in the mere and now or in the next couple of years, that's what is getting worked off. and i think it's happening in a bunch of different industries. so for years, tesla was really the only way to plausebly play the coming wave of transition into electric vehicles, and so all of the excitement about the entire theme gets run through this one ticker, say it all the time, and now look at gm and ford share price, they are getting credit for their commitments to this new phase of the industry, but it's also happening in other sectors i pointed out amazon is taking a backseat to gap and l brands and lulu and whoever else is on the channel, and you could also look at it in the media, and netflix was the only way to play streaming and now the old media stocks are getting partial credit for sorting it out. >> viacom and discovery. >> viacom is its own huge, it is up 130%, mike. >> 130%. >> it's in the perfect place right now which is in all of the

value indexes and kind of over-owned and heavily shorted for a name like that and you're absolutely right and the market is just kind of running that same play until it proves it doesn't work anymore in terms of buying the values versions of these companies. >> we're going to talk some more viacom what a week for streaming in general. between, this is the price appreciation of viacom, the sub-number at disney plus. netflix today, the story about them cracking down on password sharing and we will talk to, as david said, the ceo of at&t, john tankey when we come back in a minute it all starts with an invitation... ...to experience lexus. the invitation to lexus sales event. lease the 2021 rx 350 for $429 a month for 36 month's, and we'll make you're first month's payment.

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at&t is hosting its investor day this morning, providing more details on the $27.4 billion investment in c-band spectrum licenses along with the outlook for businesses of course that include hbo max. joining us now in a cnbc exclusive ahead of earnings, john stankey, the company's ceo, glad to have you with us this morning and so many things to discuss, let's start off with c-band because that's a big number 27 billion and additional cap ex along with it to build it out, what is it going to mean for the company in terms of your ability to offer 5g? >> look, it's an important step

for 5g we start on a great foundation of our low band spectrum, our sub-6 spectrum is the largest portfolio in the industry, so it's a good foundation to build from this particular spectrum hits an important enabler capability to kind of broadly put out more bandwidth, and this investment is a long-lived investment, and i can tell you, david, having been through a number of these auctions, they are always repeating themselves, you kind of go through them and you end up investing a little bit more than you thought you might have to, or you really wanted to, and then you get five years down the road and you look back and you say, thank god we did that, because the appetite for customers to use the service more as it becomes more capable, always seems to open up opportunity, and i think it's going to be the same in this case. >> where do you think we are in that cycle and i mentioned it obviously also in light of apple which is out there with the phone, 5g enabled, but you know, the upgrade cycle, i mean how long

until we get to that sort of, that point that you're describing, john, in your opinion? >> i go back and think about what happened at the early days of lte many same questions that were out there that are out there today were out there in 2010, and you know, it's going to take billions of dollars to turn up lte. where's the money going to come from how is it going to be used and i don't think anybody looks back to and say what did the last ten years bring us when lte brought in that next step function of bandwidth and performanceon the network. it opened up all kinds of wonderful things that people do that, they never thought about we didn't know ride hail woog be there and you would need that kind of capability and responsiveness we didn't know there would be this much entertainment video available to us, people wanted to take with them on the go. i think we're very much in that early stage right now of 5g. and as we start seeing things like more autonomous vehicles come out and we start sewing private networks show up in

businesses, we look up at opportunities that show up in medical device monitoring, we're going to be looking around five years from now and say wow, i didn't think about that, and we're going to find plenty of ice for this capability in this bandwidth. >> yes, john, conversations of numbers like this, obviously get us to the balance sheet, where at&t always faces some question, you guys point out your press release having a strong cap position and i'm sure it will be something you focus on as part of your investor day 23 billion in expected payments this year in the c-band sfrum. dividends to shareholders that come close to 15 billion gross capital investment at the 21 billion well. obviously you got to keep investing in hbo, max, how you are able to do it all and give investors the confidence that dividend will be there >> look, you missed one number there, and that's $26 billion of free cash flow this year and we generate a lot of cash, and yes, it is a large balance sheet, and we have more debt on it right now than we'll have in

a couple of years, but we also generate a tremendous amount of cash flow in this business, and numbers that others are aspiring to get to, and as a result of that, we feel really comfortable. we did a lot of work over the last couple of years, restructuring that balance sheet, it was admiral work by the team you look at our interest rate costs of what we're paying on that portfolio, and how the maturities have been extended, we are in a great position right now, and even with the slightly higher level of investment, in c-band, than what we expected, you know, the reality is, is that's about a year's worth, a little bit longer, but about a year's worth of deferral on getting this down to our ultimate ratios that we want to get to on the balance sheet, so you know, we're not in a position where we got to go out to the long-term markets and restructure our portfolio, and mistake, you've seen what we've done is largely on shorter term maturity because over the course

of this year with cash flow and into next year, we will largely take care of that and be back on our march to delevering. >> right, and i know you have these targets out there but you know, i get this question and i'm sure you get it a lot more than i do in conversations with some of your investors which is basically why not just go ahead and cut the dividend and gun the company for growth you know, sort of position it more for growth? disney did it. they didn't suffer at all. direct to consumer is becoming so important for you, through hbo max, why not take that move and put aside all of this conversation about the dividend or not, and move towards trying to, i guess, you know, super charge growth? >> well, david, i don't think we have to make that choice right now. the short answer but i would tell you, and give you some insight into the discussions -- >> please. >> internally with our employee base, if i was having to make choices around not funding growth in investment, then i'm not doing my job properly. and so you know, our belief is we've got the portfolio of growth we're going to talk about today in the investor day, and where we're putting our time and

energy, and we are resourcing in a way that we think we can be successful in those markets, and return this business to top line growth this year as you know, we will be back to 1% growth coming out of covid and we expect we're going to start the move through an acceleration phase, as we get traction in these markets we're attacking, so i feel very comfortable, when we're down, 50, low 50s, mid 50s, payout ratios on the dividend, and we can sustain that right now, and not have to walk away from the opportunity to keep this a strong and sustainable business. now, the moment that i cross the path where i don't think that can happen, or that we're not getting recognized for that capital return, of course, i've got to ask that question, but we're not in that position. >> i want to talk a bit about hbo max because that's going to be an important part of your presentation today, and you come out with some new estimates in terms of how many subscribers you'll have. 120 to 150 million by the end of 2025 now you ended 2020 with 61

million, and you're pointing to 67 to 70 million by the end of this year. so you're pointing to let's call it 7 to 9 million new subscribers in 2021, and then you're going to double it over the next four years, john? that seems like quite a reach. >> well, look, we're accelerating, first of all, you have to understand, if you kind of look back at what we did, you know, we grew more in the last seven months of last year than we did in the previous decade and as importantly we're opening up 60 new markets by the time we exit this year, and that's just the start. and we open up all of latin america and the caribbean, and come june, late june, this year, and then we'll start moving into europe, and so opening up those new markets and having an opportunity to go places where frankly it's more greenfield, you know, as opposed to domestically in the united states, where we were working off a bit of a base, you end up picking up a lot more growth add to that the exciting development of bringing in an

ad-supported option for customers, which broadens the opportunity domestically in the united states, to start attacking price points that we've been locked out of, you know, that's what's going to accelerate that growth, and the team feels really good about their momentum we haven't seen our best days. we've been struggling a little bit coming out of covid, with production issues, and the lineup of content, and we're going to now start seeing that move back into full swing, and you know, when that starts to happen, plus the improvements in the product i think you're going to be really please with what you see on subscriber counts >> and you think the ad support is going to be helpful and sometimes it can, you know, one outweighs the other. give me the sense as to why you felt like this is a worthy area to move into, in terms of ads supported. >> well, look, i think what's important is you give customers choice to meet them where they want to be met and this isn't a, you know, a situation where customers can't finally experience what they truly want if they want to pay a premium and be in a nonad supported

environment that option is out there today and in fact, it is a product we're selling today, selling very well, and by our estimates if we look at the market data that's available in the market, we are probably the second leading revenue driver of services in the united states today. and it's been a very successful dynamic around that. we've opted to maybe be a little bit slower on subscriber growth, for the benefit of our arpu and a premium product, and i think that balance is a deliberate balance and it's worked out reasonably well. now with a product, a customer who huses not to come in at that price point can, and and they are going to get a different experience and that experience is frankly from other ad supported products i think going to be even tuned a little bit better we've done the advertising in a very artful fashion. i think people will find it to be nonintrusive, and very easy to work with, and there will be some content in the environment that will be premium and not

ad-supported so you will be able to move around in the environment, and sometimes know that you can get content that doesn't have ads associated with it and that's pretty unique in the market >> obviously, all of this requires even further investment, and you're talking about, i think, 22 and breaking even in '25, why those years >> that's just an artifact and scaling and getting the customer count and driving the revenues in that support the base of platform as you know the economics of these global services, it's important to get that fixed cost coverage in, and then you grow from there, and you start to get that flywheel effect after you get past the fixed cost coverage where you start to see those returns occur. david, that's not any different than any other subscriber-supported business we've built over the decades of this company, and people don't recall that, you know, early in the wireless days, we went years and years before we had positive cash flow, and now they're very

attractive franchises that are very profitable and have nice sustaining subscriber bases an direct to consumer and what we're doing with hbo max will be another one of those franchises before it is all said and on >> we talked so much about hbo, sometimes we don't discuss turner at all and obviously still an important component of the company, of the warner assets how do you view it, though the turner networks, obviously cnn and tbs, tnt, do you still see them as core, particularly those general entertainment cable networks which frankly doesn't seem to be particularly great business going forward. >> you know, the medium we're on right now certainly to your point, is probably seeing its peak and is coming down the back end, that doesn't mean that it doesn't have good days in front of it. it doesn't mean that it can't be a profitable operation, and contribute to cash flows, that can allow to you reposition the business strategically and i think that's how we think about it we have very capable people who have done a nice job positioning those assets to even be relevant

in what i would call that shrinking dynamic of a cable bundle, and not only shrinking from a subscriber base, but shrinking in terms of the number of channels that are relevant for a customer to carry forward, and we have a relatively small portfolio compared to many others in this industry, a tighter number of chams that are doing very well, and cnn coming off a record year, record ratings, record revenue, and the turner channels holding their own because they're really not pure general entertainment, they're mixed general entertainment and sports, and still carrying good advertising premium around, and we're seeing what is probably going to be a record ncaa final four for us. and relative to advertising moving forward so the team's done a really good job of keeping them relevant even though we know it is a fairly mature business and using that capital very wisely to pivot to the growth capabilities that we can and what we just talked about with hbo max. >> we have about 90 seconds. i'd love to get a couple more in if we can. the movie, the window, for

movies, obviously did very well in hbo max, with "wonder woman 1984," is it a new world and see the return of windowing that we did in the past? or is that kind of gone? >> i don't think we're going to see the return of the windowing exactly the way it was two or three years ago. i think there's still going to be a meaningful theatrical window for content that is relevant to see in a theatrical experience is that window going to be exactly as long as it used to be i doubt that i think it's probably going to be more tuned to very capable and robust platforms that are now showing up in society. and i think it's going to be a little bit more dynamic, as to what occurs, but i think the industry is constructively working through this, and it's going to ultimately be a win-win for everybody. >> finally, we forget at&t is connected in so many different parts of the economy, the consumer, small businesses, enterprises, what are you seeing right now, what are your expectations, in terms of how this economy is turning and what

it's going to look like? >> i have to tell you, i was reflecting the other day, about where i was a year ago and where i am today, and couldn't be more different. i feel for the first time in a long time there are tail winds at our back, i think the second half of this year is going to be pretty robust, and i'm encouraged because frankly, i think it's going to be more robust than we expected in our business plan, and it's always nice to have a tail wind behind you that's a macro tail wind and i think we're going to be in that circumstance, as a country, and an economy >> john, always appreciate your taking time, look forward to hearing more from you today, your investor day, thank you >> good seeing you, david. thanks for having me on. >> good to see you as well john stankey, ceo of at&t. carl >> all right david, a lot more still to come this morning, and check in with the t-mobile ceo mike sievert and novavax and nxp apple and master card and gme. back in a montme

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apple's going to be a name to watch this morning. morgan stanley's katie huberty saying we agree that some reports of iphone 12 weakness is probably real and see the pullback as a buying opportunity and remain overweight, 164, but at citi's jim suba who says longer term that a car has real potential to be long term accretive and says a bridge between a 2 trillion and a $3 trillion market cap and reiterates a bar over there at 150, and does say the car you would expect would have lower than average corporate margins for apple. >> i find it fascinating with the stock down 15% from the highs you have people still reaching for the big picture new market story for apple a trillion in market cap going from 2 to 3 trillion, i mean how big of a piece could a car be in there? what's global automotive profit that will filter it? we're not saying, maybe katie hueberty is saying and the company has 60 or $70 million in

net income, and this year, next year, that's not enough for you? and i think it tells you we're out of that mode of thinking of these huge kind of mega giant profitable companies that are great defensively, in a world where growth is low and yields are low and we have to find the story of in terms of the next magic market and the opening. bitcoin for apple pay. and you can see a lot of speculative stuff on this, carl. >> yes, that's the period we're in there's the opening bell, guys a look at the nyse and the nasdaq on this final trading day of the week, as we said coming off of all-time highs for at least four, the dow, s&p, russell, transport, we are on pace for the best week in about a month for the major indices. guys, we generally pay close attention to trends in aviation, just because of the large reopening dynamic that's at play there. and boeing today, david, an order for 24 new max jets from an investment firm, writes for another 60 and i noticed tsa just put out passenger traffic,

1.28 million yesterday, through tsa, and that is going to be just short of the record post-covid, so we're definitely working our way back in terms of air travel traffic. >> we reflex and the year over year comparisons are going to get pretty impressive too, aren't they, given that nobody was traveling a year ago, or starting into that period. as you guys well know. listen, in the airlines, raiseed so much money that they got it to actually pay for things, i guess, in addition to withstanding the enormous losses they have, mike. and i don't know if that trade so to speak has run its course, in terms of the reopening part of it. >> it's fascinating how fast the market is just sort of assumed, you know, almost back to normal, if you look at, because all the money raised debt plus equity of united airline, it's back to the pre-covid peak some of them are higher than that a basket of travel and leisure related stobs, higher, and the economy is bigger this quarter, next quarter and theory the

floor for the entire market has been lifted and valuations across the board are higher but it is amazing how this was all done, the whole round trip happened, before we really did get back to a point where people were traveling freely again, carl. >> yeah, guy, the banks are going to be the one to watch this morning, definitely the biggest gains as a sector, better than 1%, and there's a few different cross-winds here, david, one is just the fed data on household net worth that came out yesterday, and american household net worth at an all-time record as of the end of the year and bank rate has a look at what the average household may get in terms of windfall between stimulus checks and the tax refunds, and they say the average family of four, between those two things, are probably looking at a windfall somewhere in the neighborhood of $10,000, so we're going to watch retail sales, i see at wedbush, visa to 250, and master card to 400. >> wow and you heard stankey talking

about his expectations, as we head into the summer here as well i should mention at&t shares up, but we'll talk more about that mike, i look at the banks and it is amazingthe year that they'v had and a year that is obviously only, what, a little more than 2, 2 1/2 months in and goldman sachs is up 30%. all time highs and jpmorgan a 480 billion market value and it doesn't feel like that long ago when we were talking about lows and now we're talking about highs. >> exactly they're right in the middle of this huge flood of very cheap deposits, for them, going to be flushing into their accounts, and you know, obviously, the macro is very strong and the yield curve moving in the right direction. i was just looking actually at price to book ratios for jpmorgan, goldman sachs, morgan stanley, they are now at new highs for the post financial crisis period, right jpmorgan, a forward-looking basis, 1.8 times book value, and you know, two times book was kind of, you know, fully valued for those guys, however, you could go back pre-2008, and they

all traded at these big premiums nobody thinks we're back in that world. the leverage in these banks was nothing like it is the returns on equity, however, just too much is going right probably fundamentally right now, including credit costs for them to really have too much of a stumble in the near term plus there's just, it's just this rotational energy, everybody wants to be a part of that. >> and to your point, many of them were trading below tangible book for quite some time whatever you want to call it. >> morgan stanley for a long time was wall lowing down there and they have completely re-rated in this period. >> yes amazing. >> you mentioned goldman, david. david salomon with additional comments at a global town hall yesterday talking about bringing workers back we understand that until more of russ vaccinated, that's going to be a challenge, he says, but based on the current pace of vaccinations and where we hope to be by the summer, we believe that we are well-positioned and there's a good chance that we can meet that goal we have seena bunch of memos this week, david, from cnn, you mentioned viacom, and the

"washington post," about bringing people back, letting people have their summer vacations, basically, but then starting to work it back, i don't know if you noticed yesterday, target, a piece in the minneapolis star tribune, that target at its downtown corporate office is going to reduce its footprint by a third. so we're going to watch not just the return to work, but the return to work to what, and how much space >> listen, you know, again, to your point, it does appear september now is the new, september of last year, remember when we were all talking about getting back, i actually did, but very few people came back to the office, that's for sure, last labor day, but this one seems to be when they really were, and goldman has been outspoken about the desire to have people back as soon as possible, and his feeling that the company really benefits from the congregation of people in the offices, and the exchange of ideas that results from that, and many do, and many ceos do, but what i continually hear from

them, as well as we're going to have, we're going to give you a flexible work schedule, you're never going to be able to work remotely, few people are going to work remotely, all the time, but many are going to be able to work remotely occasionally, mike and so that does lead you back to this idea of commercial real estate, and no, i doesn't get to ask mr. stankey about the return to work plans, for example, at warner, which has beautiful headquarters now hudson yards and the far west side of manhattan, but those kinds of developments, and you just have to wonder, will any of these companies ever need additional space. >> exactly the kinds of the reckoning that never quite happened because the system was kind of back-stopped in terms of commercial real estate and some kind of liquids , liquidity crisis and we will find out what we're going back to here and i think every company assumes their office footprint will shrink and an eye on the new york city ridership stats and they're still 55 to

70% declines from the equivalent day a year earlier, so that really hasn't come back, and obviously, you know, this is a parts of the country that's pretty careful, but nonetheless, it's still a long way to go back. >> yes, i've been one of them though it's nice. it's clean everybody is wearing a march no problems. still the best way to get around and hopefully we'll get back to, well, we'll see, who knows guys, mike, i'm happy to see viacom is up not sure what i'd do if it wasn't up 2% and discovery as well. that pair, one up 135% now for the year, the other up 127%, and a number of friends at both those companies have, well done, you're buying lunch next time, whoever you are, that's for sure, but that move continue, and it's not clear it has much to do at this point with fundamentals it's momentum. it's quantity tatively driven algorithms that just, i guess focus on price momentum and there it is. look at that move in one year. >> and also very telling because

something else is happening in the overall market which is we're in a phase where value is morphing into momentum and the momentum strategies are now looking very much like what six or eight months ago, would have been a value portfolio part of the story with viacom and discovery is they started out at incredibly depressed valuations, and they had been for years, they were kind of priced for permanent decline, under ten times earnings, and now, you know, now they're back to a market multiple, but not necessarily in an area where you know some of these wild revenue multiples have been given to emerging companies so who knows how long the sweet spot lasts but it seems a beneficiary of the marginal dollar going into the hottest ideas. >> i did want to hit china briefly. there are moves that have gotten investor attention alibaba shares are down 4% and the financial ceo resigned they say for personal reasons. there were some moves made on tencent but not something we

should forget about. some of the largest companies in the world. adr is great, certainly alibaba is one that investors know well but the government there continues sort of its focus, on anti-monopoly practices, and financial services, and it certainly is giving some investors pause. >> yeah, we're going to keep our eye on coupon, of course, after the debut this week, and i did want to ask mike, how closely he is watching europe, because the vaccination trends in europe are nowhere near where they are in the u.s. and the u.k italy is talking some tighter restrictions potential locized lockdowns that will go and take you through april 6th. disneyland paris today, says they're not going to be able to open on the 2nd as they had previously planned so they got an issue in terms of obviously, part of it's supply, as astrazeneca keeps reining in what they think they can deliver in the coming months and what is that going to do with asset

classes and overall inflation trends and maybe that puts a damper ton. >> massive divergence building up in terms of where the growth is and where it isn't and of course we heard the ecb gets concerned when global yields go up and their yields go up and they want to stand in the way of that and almost acting as a little bit of a break on our yields as well and also happening in australia and other places, so it's interesting, it's sort of a hot/cold story, which is pretty familiar from the old days but they did have a good run in their markets, european financials, for example, really did have a huge comeback we'll see if that can last >> meantime, that 10-year, keeping, still above 1.61. let's get to bob pisani. hey, bob. >> happy friday, everybody you're right, carl, yields are smacking around the stock market again. what we're seeing is the stimulus is pumping the global economy. and it's moving bond yields and that's affecting the markets let's take a look at the sectors. banks of course a big winner and been a big winner this week and bank up about 6% as a group

here energy is holding up and industrials. there's your reflation trade which continues to be strong what's lagging the two sectors most sensitive to moving yields which would be tech stocks as well as china, china's been lagging all week, along with technology, and they tend to move pretty much hand in hand so where are we with this whole story about markets and treasury yields it's complicated but basically, this whole narrative for higher yields is really, really powerful. you just feel the market, and the yields want to move up at this point, and stimulus is the big mover for global growth. what are we at 25% of gdp of the united states, and it is enormous number, bigger than we've ever seen here and then we have the inflation story, transportation bottlenecks adding to price increases and hope people think that will go away eventually but you get the idea, this is very powerful, this narrative for a higher move-up in yields, and because of that, you get that growth value yo-yo, i call it, and value is winning, at least this

week, and there you can see the bank stocks, great week for bank stocks, they're up about 6%, as a group, as i mentioned and there's the big money center bank, and the regional banks also having a good week. and the reopening play, retail, for example, these retailers have gone bonkers this week, they're all up double digits here and there is the growth stocks i'm showing you here, tesla, pay pal and nvidia, and microsoft to the down side and tend to move to the down side and we've seened, i mentioned earlier, retail stocks doing great, and macy's at a new high and they're flat to slightly up today, so that's a good sign overall, and that reopening trade that we're seeing. and if you're confused about all of this, growth versus value, what do i do, banks, do what bogle did, own the index, with the s&p 500 at a new high yesterday and why would you worry, why would you want to worry about gross versus value and let the nerds worry about it and own the broader indexes. i'm a bogle disciple of course and a quick note about active versus passive management.

we have some of the best hedge fund people in the world, and people who are legendary and outperform the market but it is important to remind everyone, most people don't. most active managers are terrible long-term s&p, global, every year, does a study of active managers against their bench marks and the year-end study came out yesterday for december 31st, the whole year, and once again, numbers are bad. i'm looking here at growth funds here, and the active growth funds, one year, 60%, underperformed, two years, carl, three years, 69%, and it gets worse, when you go out to 10 years, 82% of active fund managers underperformed the s&p 500, when they used the s&p as a beacon and the best people on cnbc, the guys who do outperform but most of them don't, and another reason why jack bogle became famous, shooting against those people index funds. >> yes >> we miss him we miss him, bob thanks we'll see you later. let's get to rick santelli

who brought us some of that wholesale inflation numbers earlier in the morning r hey, rick. >> absolutely. let's quickly touch base there again, i picked one of them, this is the year over year look at 2.5% for core, and the loftiest levels since the end of 2018 let's call it a little bit more than two years not the only issue to pay attention to last night when verizon priced their jumbo deal, hedging, selling pushed up those yields not only domestically but everybody is in the same boat and everybody is looking at each other saying whose rates can we control best and it popped up a bit, and at the end of march, not only in terms of the fiscal year for japan, but also the half year but also what's going on with regard to the end of march changes, and some of those margin requirements for w securities that was changed during the covid crisis, and now, many of these primary dealers are not only dumping their treasuries, but when you add in everything i just described, you're definitely seeing pressure.

look at the two-day of 10s we can see that 1.61 plus is kind the high yield and if you open it up to one week, last friday, we had a 1.62 intra-day high yield remember, the high close is 1.59 for 10s. 2.32 for 30s you really want to watch these levels on a friday remember, it isn't necessarily how high yields are going to go, shouldn't be picking tops, these are still very aggressive markets, with momentum but what we really want to watch is how small the pullbacks are because if the pullbacks remain as small as they are, and more upside in yield and more down side in price and if you bought any options you're under water there with settlement on monday, there's more selling pressure, open the chart up to the end of the summer of 2019, and you can see where 13-month high yields on 10s and 14-month high yields on 30s and this is a global impact. we're seeing the yields go up, even the ones that are controlled with yield curves, whether it's japan or australia, all of these central banks are trying to out-manipulate each

over other in the face of what is considered stimulus the rates are going up, lots of reasons and we look at everything through the prism of this giant debt and the dollar, up on the day and down on the week and back to unchanged. it likes higher rates. carl, back to you. >> thank you, rick santelli, we'll talk to you later. so clearly, tech is lagging this morning the banks and some industrials are helping to lead. boeing's the number one dow component. goldman comes within 6 cents of 350. we're back in a minute everyone wakes up every morning to a world that must keep turning. the world can't stop, so neither can we. because the things we make, help make the world go round. they make it cleaner, healthier, and more connected. it's what we build that keeps things moving forward.

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page one of the journal is that nonfungible token by beeple that sold for $69 million, we will talk to him about the future and the sale for nfts. and super bowl champion rob gronkowski also getting into nfts more "squawk on the street" in a moment don't go away.

residential and commercial equipment manufacturer hayward holdings set to make a public debut this morning they are expecting increased demand in 2021 driven by a

robust backlog and suburban migration during the paparazzi kevin hallaran joining us. congratulations on the ipo pricing. the stock i don't believe has opened yet, but thanks for joining us. >> thanks for having me. excited to be here wonderful day for our company and our employees. >> i imagine so. now, tell us a little bit about the market what you are seeing demand-wise. it was a big story last year in the summer about a backlog of newly constructed pools. people couldn't find the people to dig them and equip them how does that look now and how important is that for your business in the immediate term >> a great demand. i really do think that the covid experience has really reinforced people's love for the outdoors and desire to get out and lead a healthy lifestyle in their outdoor living so demand is still robust. and we're expecting another great year ahead of us. >> now, you manufacture a lot of the equipment, right, the pumps,

filters, things like that for the pools. how much of it is though about newly constructed pools as opposed to the install base, existing customers >> we do build the equipment necessary or needed to make your pool work. that's really what hayward does. the strength of this business, gentlemen, is the install base and the after market 75% of our revenue is tied to a very reliable nondiscretionary revenue stream so that's really the strength of this new construction, of course, is great. it adds to that install base but the muscle behind this industry and this company is that install base out there for folks needing to repair, replace, upgrade and remodel their pools that are already in the backyard >> kevin, congratulations. i remember last summer when pools were a huge issue already,

as mike has said getting an appointment to get a consultation on either a pool upgrade or installation was like a multi-month process. is labor on the installation side a serious drag or headwind? >> it certainly was last year. i believe in free markets folks will probably come to realize that there is greater demand than there is labor right now. so i believe that there are some contractors starting to enter this space to maybe address some of this backlog situation that you described from last year >> so, obviously, consumers in general are in god shape a lot of the inputs probably look favorable for you what's happening on the cost side for you in terms of equipment? we hear about supply chain issues and expensive things like steel. >> yeah, there is some headwinds. our normal pricing increases take effect with the start of the seasonal year, october 1st we take on mitigation plans and

productivity targets inside, so we are not passing all of that along. but there are some clouds starting to form on the horizon. when necessary, we have that opportunity to do an off-cycle price increase to the marketplace. in fact, we recently did that just about two weeks ago today, in fact. we pushed some increased prices out there for this very topic. we are starting to see some inflation starting to creep in around some commodities, some of our raw materials, as well as, frankly, some freight and logistics costs. >> all right kevin, well, we appreciate you filling us in and we'll certainly watch for the stock to open and follow up with you after. thank you. >> thanks for having me. thanks for the interest in hayward. >> carl. we'll take a break here. pretty interesting market action regional banks, all-time high, up 6% for the week

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good friday morning. another hour of "squawk on the street." i'm carl quintanilla with morgan brennan and david faber. stocks looking at some gains in some areas and not so much in the other areas. the growth in value see-saw rocks back and forth today as we are coming off record highs for the dow, the s&p, the russell 2000 and transports. consumer sentiments about to hit. let's get to rick. >> yes, we are going to end the week with our preliminary read on university of michigan for the month of march our final read at the end of february watt 76.8 and we are expecting 78.5 but it's nowhere near there. it zoom, zoom, zoomed a strong number, i think vaccine-related, potentially reopening awaited, and that's 83.0. 83.0 this takes us all the way back in the way back machine to march. march of last year when it was 89.1 if we look at current conditions, it zoomed as well.

it leaped over 90, now 91.5, rearview mirror, 86.2. expectations jumped from 70 to expectation 70.7 last look all the way up to 77.5 on the inflation read though, it's a bit of a different story. sequentially, 3.1 is less than the one-year outlook on inflation at the end of february at 3.3 and if we look at the five to ten-year, it stayed at 2.7 just to give you an idea, the 2.7 level, well, that is the highest since july of 2015 we have had a lot of 2.7s. to find a 2.8 you go public to 2015 and the read on one-year fell from 3.3 and 3.3 you had to go back all the way to 2012 to find a higher read. but that has moderated a bit carl, back to you. >> all right thank you very much. as we said, stocks mixed

yields continue to trend a bit higher, approaching some of those one-year highs we touched last week. jeffrey solomon joins us to talk about all kinds of asset classes. happy friday. >> good to be here nice to see you all. >> does it feel like last week's rate scare is getting a little less scary over time >> well, i like to think about things in terms of throwing rocks in the pond. the first time the market wakes up to the fact that trates go i both directions, its the big manufacture was another rock in the pond and so the more that people get adjusted to the fact that we are going to have a reflation trade here as people start to come back to work, the vaccines are kicking in, we have huge stimulus coming, you expect rates to move in that direction. sometimes it happens in fits and starts and causes the market to have some indigestion. >> looking at some of the growth

expectations for gdp in the coming quarters, you are generally looking in the high-fives for q1. some have q2 at 11 eight for q3 are you seeing any reason to doubt some of these, i mean, these multi-decade high estimates in gdp growth? >> we are coming off such an unprecedented year, in 2020, where we have seen it to the flip side. so i tend to look at smoothing things out over the long term. i think there will be a reversion to the mean. obviously, if you just look at really big numbers like that, if you are coming off a much lower basis, when we return to what would have otherwise been a normal, smooth gdp growth without the virus, those are numbers that are totally achievable i don't know if they are going to be that dramatic, but over time we will resume economic growth it's going to happen

so again i don't know that i am smart enough to know whether or not it will happen in that way or happen over an extended period of time but we will reflate. no question. >> jaeff, we have had so many conversations with you, really over the years, about technology, innovation, longer term what those types of opportunities will mean from an investor standpoint. given the fact that we are seeing this broad based shellacking of tech stocks, momentum names, some of those growth stocks right now, what's an investor to do? >> well, i think you have to look at longer-term trends there is two ways to look at the shellacking that occurs. it's an entry point certainly. if you are thinking about long term, in areas like biotechnology and sustainability, the investment and tech infrastructure, cybersecurity, all of these things that you all talk about all the time, which are very real in terms of the needs of the economy in this new world in

which we live, you can make investment in those. i am not one of these folks that thinks that just because a few weeks of a rotation into value away from growth that all of a sudden the growth trade is over. it is not over let me just say that the amount of money sitting on the sidelines in the private sector and public sector to invest in meaningful growth areas that are disrupters like sustainability, ai and cyber, rejorge our entire supply chain because of what's going on with china, there are a ton of places where people from to invest in our gross domestic product here in the united states so a month of turmoil doesn't dissuade me from making here i have my portfolio allocated in those areas. >> speaking of things that haven't stopped, packers, jeff, continue at least the issue of them, unabated what are your thoughts here? do we get to a point where these things are going to become tougher to issue, or is this

just going to continue to run at these record paces >> yeah, i think there is a few things here. first and foremost, we went through two decades this country without really a lot of listings of companies we had 8,000 public companies in 2000 and 5,500 today by the way, 500 of the 5,500 of biotechnology companies. when you back that out, we haven't taken a lot of companies public i think one of the things over the past year, companies realize that having access to public capital is the difference between sometimes living and dying, and so there is a number of private companies that are looking at ways to get public. spacs provide a mechanism for that and they provide a different mechanism than the traditional ipo process. in some ways it's much more streamlined. that's what's fueled i think a lot of folks realizing they can sponsor spacs. we are not seeing a slow down in demand for spacs not everything is going to get a

great deal done. it's caveat emp tore there will be winners just like ipos and many industries if i am an investor, pick your responder teams carefully and reunderwrite the companies when they announce transactions that's because where the winners and losers will be picked. for the near term, i don't see that slowing down anytime soon. >> reunderwriting. that's an interesting way to put it is it disintermediatiating mid and late-stage growth capital that might otherwise come from, i don't know, venture capital? >> in some cases it is companies are saying, listen, i have a cheaper cost of capital than private capital and i should look at whether or not the market is, the public markets are a better place to finance the growth of my business there is no question it is a meaningfu meaningful discussion when private companies are looking at the next leg of growth is it disintermediatiating -- i

don't know that i can pleasure that if you are a private company looking to do series c financing you think about whether or not to access the public markets we advise people, are you ready to be public that's the question. are you ready to be public if you are not, you should continue to finance yourselves in the private market. if you are ready to be public, then you schalook at the cheaper cost of capital that maybe the public markets are willing to give you >> jeff, i'll put that question you to are you ready for crypto what are those conversations right now given the fact we are seeing more institutional money come into different asset classes. we have been talking about nfts all week some of these different crypto currencies and blockchains involved seem to be at an inflection point now. >> i think there will be more widespread adoption of trading in digital assets.

th i think they will be widespread distributed ledge gers they provide a better form of security and protection on data than traditional warehousing of data in one spot so i think these are trend that will play out over the next decade and i think digital assets is a manifestation of that bitcoin and the move in bitcoin, i fundamentally look at it as a hedge against reserve currency you know, so i think a lot of people talked about why bitcoin is doing what it's doing i just think when you live in a world with unprecedented fiscal spend, people get a little bit worried about the world's reserve currency and bitcoin is -- and gold and those other things that are stores of value become more at the front end of people's minds so when i look at what has to happen over the next few years, i am looking at whether or not institution is actually a move into those markets more -- with more gusto, and if they do, i

think we will be there to take advantage of that for sure >> spacs, crypto, nfts, a lot of new phrases and terms in asset classes we need to get familiar with thanks so much good to see you. have a good weekend. >> same to you coming up, the ceo of t-mobile will join us on the heels of that company's investor day. what he has to say the state of 5g, the future, of course, of the business in so many areas. plus, the integration of sprint. it is almost one year since they closed that acquisition. by the way, shares of goodrx, they are down double canddigits after reporting results. stay with us

welcome back goodrx fourth quarter results, seeing monthly active customers grow by 30% year on year, but missing eps estimates. dug hirsch, good rx co-founder and the co-ceo thanks for joining us. >> thank you for having me. >> i want to get to earnings first, before i to, i want to get your apps take on the comments from president biden last night this push to have any american, adult american, be able to receive a vaccine starting may 1st, be able to, i guess,

essentially return to normal by the fourth of july you have a lot of insights, a lot of data that you have been pulling around vaccine distribution is it feasible can we do it >> i think we can. we are partnered with the cdc and vaccine finder and we have what i think is the most popular vaccine appointment site on the internet right now we have had over 1.2 million sign up to get alerts when their appointment is near them we are seeing great data lots of consumers getting shots. we do believe that the inventory is out there and people are getting it faster and faster and we are hopeful we will have a great reopening this spring. >> so shares of goodrx under pressure this morning. that miss in terms of eps. it was a strong year for the company. you had a record number of monthly active consumers, double paid subscribers and record hiring you almost doubled the number of employees last year as well. are you surprised to see the stock down as much as it is? >> don't spend my days focused on the stock

over 800,000 subscribers, record metrics in terms of monthly active consumers, republican, over 18 million people used goodrx in january. the stock's gonna do what the stock's gonna do we are going to help americans get out of this pandemic behind this is the other health care crisis that we have, which is people still can't afford their medications and can't afford their care and that's where i'm focused. >> the sub skraber base increased 102% year over year q4 '19 to 2021 what are your expectations in growing in that fashion? it's hard to grow at 100% consistently when are you seeing in terms trends given there is some concern amongst your investor base today in your ability to do so >> covid was a weird year. the value that we can deliver to consumers and the solutions whe things were locked downed. i believe over one billion

undiagnosed conditions are sitting out there and consumers are re-emerging to talk to doctors and go back to the pharmacy and re-engage their health care. this time you can use goodrx and incredible services that launched over the course of the covid. we believe there is a grand reopening happening and people will find new ways to consume health care. we are excited about 2021 and returning to a new normal. >> given the fact that we have all of these services, all of these products, goodrx and the growth in the marketplace out there, has that returned to -- as that return to normal happens, telehealth, is that here to stay in will we see fundamental to the ways people are accessing health care? >> it is here to stay. not everything i don't think the whole world is moving to telehealth for certain services and categories where it makes more sense to talk to someone on a zoom call than driving to the doctor's office or something like that, there is a great room for telehealth, mail order as

well we have over 150 services at goodrx, someone can see a doctor online at a very affordable price. we think that will stick around and we think it will continue to grow and add new services to make it easier for consumers to find affordable and convenient health care. >> i wanted to ask about that as well we can imagine why it's been so popular the last year, but you are talking about people getting back out and getting face to face with their doctor do you see it declining in terms of its growth rate >> i think you will see some coming off as people do like to see their primary care physician, go in the office and get the doctor to put their hands on them in person. there are lots of dcategories where a consumer can see a therapist without leaving their house. there are self-diagnosed things, a woman looking for birth control, for example, or a skin condition where you can inspect that very well from a remote basis and prescribe and i think we focus on those steady simple

blocking and tackling conditions where it's easy for a provider to diagnosis and provide a safe med to a consumer. there is lots of room for telehealth, but not everything. >> finally, amazon watching its pharmacy-related products or expanding its products in health care how big of a threat could that be or risk could that be to you business >> thi think there was a perception in october when they made changes to their mail order pharmacy it's really not. amazon is one solution they focus on mail order, which remains a small part of the pharmacy experience for consumers. we are a marketplace we are partnered with amazon we welcome anyone to bring down the cost of care so far there hasn't been any impact to our business we remain excited about the future we are confident in just a really stellar 2021 and we look forward to continuing to deliver value to consumers >> we look forward to continuing

to speak with you. doug hursh. >> thank you. it has been a year of no sailings for the cruise liners seema mody live from manhattan's cruise terminal on how the industry is trying to rebuild. >> david, it was a year ago we watched multiple cruise ships around world left stranded at sea while covid spread onboard the first major outbreak carnival's diamond princess in japan. over 700 infected, nine people lost their lives as passengers were confined to their rooms for drayson end. in the u.s., one full year of no sailings carnival, royal caribbean, norweigian cruise line have lost nearly $40 billion in sales since the pandemic began it's one of the reasons the cruise lines have had to be aggressive loading up on billions of dollars in debt and issuing sec equity they are awaiting guidance from the cdc. once received the cruise lines will begin mock voyages. if they demonstrate to health

officials they can keep covid off their ships the expectation is that the cdc will ultimately give them the green light. wall street estimate ago summer to fall restart. but the experience will be different, guys. fewer people onboard analyst estimates 50 to 60% of capacity sailings in the beginning will be shorter, too. >> a lot of them have their own islands in the bombsahamas whice essentially a bubble where they can control the vaccinations, control the testing, and naturally we are going to need mexico. >> now, despite what went down a year ago, multiple channel checks and future bookings data from the cruise lines suggest that travelers are eager to get back onboard norweigian disclosing 80% of the january/february bookings are new cash bookings. a lot of questions around the convenient norweigian and royal started announcing vaccination require its for the crew members the industry still deciding

whether to require passengers to be vaccinated as well. meantime, cruise ports like here at pier 88 in new york, guys, feeling the effects. back to you. >> i am curious. if you have pentup demand and then you have lower capacity levels, less people allowed on the ships initially, what is that going to do to pricing? >> a great yegs. they are trying to do whatever they can to keep prices down to incentivize that traveler eager to get onboard to book travel. over time, if demand actually remains strong, once the cruise lines restart sailings, there could be an opportunity to raise pricing. at this point it's just about getting the people onboard i think then they will revisit questions around pricing and getting more ships because over the past year every cruise line has had to downsize their fleet to make ends meet. >> what an odyssey the whole industry has been through. fascinating. you documented it so well.

seema mody covering the cruise lines. shares of volt a down about 10%. despite a beat on the top and bottom line, ceo mary dylan is going to step down in june it is the final night. tune into cnbc's on the edge 6:00 p.m. eastern time it's been quite a week of sharp opinions and debates with the judge. join him tonight again 6:00 p.m. eastern. we're back in a moment for skin that never holds you back don't settle for silver #1 for diabetic dry skin* #1 for psoriasis symptom relief* and #1 for eczema symptom relief* gold bond champion your skin 6:00 p.m. eastern time it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets?

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welcome back it is time for our "etf spotlight. we are looking at the vectors rare metals etf, remx, that is the ticker there volatile since the start of the year up more than 20%, under pressure now, down 2% president biden along with the leaders of the other so-called quad nations, japan, india, australia are meeting today to, among other things, reportedly build a rare earth procurement chain, reducing dominance on china metals it's used in smartphones to ev batteries and military aircraft. shares of the etf largely under

pressure because many of the names in there given that chinese dominance are chinese names. "squawk on the street" will be right back ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ at fidelity, you get personalized wealth planning and unmatched overall value. together with a dedicated advisor, you'll make a plan that can adjust as your life changes, with access to tax-smart investing strategies that help you keep more of what you earn.

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welcome back i'm rahel solomon. here is your cnbc covid update at this hour astrazeneca is defending its vaccine this morning saying there is no evidence of an increased risk of blood clots. larger european nations like france and germany say that the nations will continue, some smaller countries like denmark and norway have suspended shots. they are concerned about reports of blood clots in a small number of people who have received the astrazeneca vaccine. the world health organization is now looking at whether any clots were actually caused by the shots or would have happened anyway they say vaccinations should not

stop >> it's very important to understand that, yes, we should continue using the astrazeneca vaccine. all we are looking at is what we always look at any safety signal must be investigated in fact, it's very important that we're hearing safety signals because, if we were not hearing about any safety signals, that would suggest that there is not enough review and vigilance. >> and 81,000 doses of the astrazeneca vaccine have arrived in guatemala another 33,000 were delivered to el salvador as part of the united nations covax initiative to make sure that vaccines get to less prosperous nations carl, back to you. >> rahel solomon, thank you very much. suzanne clark named ceo of the u.s. chamber of commerce the nation's largest business lobby, the first female to hold that title and she joins us this morning in a cnbc exclusive. congratulations. great to have you.

>> thank you so much it's great to be here. >> i have been thinking about the chamber a lot lately because you have been constructive on stimulus, which we, obviously, have gotten. you have been asking for an easing in trade tensions, which looks like we are starting to get. you were cautious on the minimum wage hike. that got excised i wonder if you could comment on how your priorities have been met lately and what the new priorities will be from here on. >> sure, absolutely. as you well know, this is a pivotal time for our country we got to get this ceo ountry b to health and back to economic health and the chamber has a great team and is ready to do just that. so we have been pleased with some of the developments that you ahave cited there is more to do. next up, infrastructure and immigration. >> so let's talk about those two. which is truly on the front burner which is more likely -- and we are in a period now where, i

mean, bipartisanship looks like it's going to be a tough hill. there is still this growing sense that infrastructure at least can be put on the table. i know you guys have been talking about trying to to get this done by early july. >> build by the fourth of july it used to be corn was knee high now it's build it by the fourth of july. we have a lot of optimism about getting infrastructure done. we think there is a compromise to be had here it might be bigger than some on the right want, might be smaller than some on the left want, but we need to be globally competitive and we have crumbling roads and ports and bridges and we need more broadband. it's time to come together and get this done. >> all right that sounds great, but i'm looking at a vote that just came through. no republican supported the relief plan. and one would imagine that there is not going be any bipartisanship when it comes to infrastructure as well so what gives you that confidence that this can get

passed if it has to get past the filibuster >> because i believe theat there are governing adults who know they have to tackle complex problems and meet the opportunities ahead for americans. i just believe that people care about jobs in their district, they care about american competitiveness, and there is a deal that can be had here. >> suzanne, i want to shift gears a little bit we have seen these incredibly large and prolific hacks by state sponsored entities in recent months. certainly, there were headlines again this morning about possible ransomware situations as well. how big is the risk around cybersecurity for american business is there any way for us to quickly get our arms around it i guess, how many conversations are you ahaving about this and how big the threat is? >> yeah, important point, right. and i think all americans are paying attention right now to

the size of this threat. and, yes, there are multiple conversations happening with business leaders and government leaders. if 95% of the critical infrastructure is owned by the private sector, then we have got to be at the table to figure out what these solutions are we are a little bit concerned at the moment that businesses don't have the liability protection they need to bring some of these risks forward and be open with the government about it. we are doing work behind the scenes to make sure that business is at the table and is protected so that they can be part of the solution >> you know, you listen to some of the rhetoric from, i would argue, the prior administration and the white house and the idea or the warning was that a biden administration would bring about tax hikes, would reverse some of the tax cuts on american business, regulation would rear its ugly head. i wonder if you can characterize to what degree the chamber is weary of those things still happening from here, despite all

the progress biden has made in the first 50 days. >> look, you know, for 109 years we have been sitting at the table of job creation, economic growth, which is usually the table of lower taxes and lower regulations. so we're weary, but it's no not our job to be weary. it's our job to be prepared. so we always want to see less taxation, less regulation. this is a moment in time with 10 million americans unemployed that we need this economy unleashed, not shackled. >> suzanne, as you will take over, it occurs to me, it's been a extraordinary year when we think about the willingness of ceos to engage on public discourse, whether diversity inclusion, esg, things having to do with the federal government in other ways. do you encourage that amongst the nmembers or does it take awy the potency of your own arguments? >> it has been an extraordinary year, right, no so many ways i am struck by your phrase

because you just pause and think of how different things were a year ago and how we never would have guessed we'd still be in this situation a year later. but to your specific question, i think the role of the ceo has changed and in a way it's a good thing because it's reflective of the increasing trust in business so employees want to know, customers want to know, stakeholders want to know what business leaders are thinking, and i think that's a good thing. >> suzanne, what are business leaders thinking around immigration? you mentioned on the one side, obviously, our system seems to be very broken right now and that has been the case for a number of years. so there is room for reform. how much of that can actually be krafrted and get over the line right now and how do you balance that against a high unemployment rate and millions of americans that are still out of work >> i think balance is the really important word so you asked what business leaders are thinking the answer is work force is the

number one issue that we hear from ceos at all levels. they are worried about k through 12 education, worried about apprenticeship and skills training, they are worried about a globally competitive work force so desperately needed in the united states and they are worried about getting skilled labor from overseas, allowing who get their ph.d.s here to stay so across the spectrum a globally competitive work force at all levels is the number one issue that we hear about from ceos and again do we need increased border security? yes. do we need increased legal immigration? yes. and there is a way for adults to come in the room, be true to their political philosophies, true to their constituents, and get the right thing done for america. >> finally, suzanne, you mentioned global competitiveness. china, looks like the secretary is meeting with the chinese in alaska there is talk of a reset, talk

on the semiconductor shortage. do you think a reset is in the offing what would be the implications of that? >> look, we are glad to sea the biden administration making this a priority of course, our relationship with china is really important. on the one hand, our trading relationship supports something like 2.5 million american jobs on the other hand, some of their positions on intellectual property, on tech transfer, on cybersecurity that we mentioned a minute ago require real confrontation. and to we're glad to see action, multilateral action, in this space, and we are actively working with the biden administration on how to treat this really important relationship >> we're going to watch that, hopefully, with your helpful we hope you come back as often as possible your voice, obviously, has big implications for american business, which our viewers are very interested in thanks so much and congratulations again. >> thanks very much.

>> when we return, the threat of deepfakes near flawless forgeries are here we are going to discuss what it may mean for big business. plus, move over hopny and coops. beeple now among the top three most valuable living artists selling his nft work for 69 million at christie's yesterday. yes, he is a valuable fellow can you put a value on a person? anyway, that and more questions next on "squawk alley. stay with us we made usaa insurance for members like martin. an air force veteran made of doing what's right, not what's easy. so when a hailstorm hit, usaa reached out before he could even inspect the damage. that's how you do it right. usaa insurance is made just the way martin's family needs it with hassle-free claims, he got paid before his neighbor even got started. because doing right by our members, that's what's right. usaa. what you're made of, we're made for.

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which is a better bet? growth or value? the rotation has been into value in 2021, but strategists still saying buy the dips in growth. our traders go head-to-head on this topic on tradingnation.cnbc.com resqwkn e re" coming up.

welcome back to "squawk on the street." we were talking about cybersecurity. the fbi is warning american companies about the next big cyber threat deepfakes. eamon javers joins us with more. >> yeah, hey, look, as i talk here, look at tomsome of these images, pictures from a website called this person does not exist dot-com. none of these people are real. all were generated by a neural network using a technique gald gv called gnchs a.n pictures like these represent a new type of cyber threat to american businesses. and now the fbi this week is warning companies about the danger of these deepfakes. in the new alert the fbi said the threats include synthetic corporate personas and sophisticated emlations of an existing employee. the bureau said it was cause significant financial and reputational impact to businesses the cyber threats of the next couple of years will make

today's spearfishing emails and fraud look quaint. deepfakes, coming info, she warns that ceos are particularly at risk here take a listen. >> if you are in the public eye as a business leader, you presumably have content out there on the internet of you either delivering a speech, talking to your employees, on an earnings call. that is all training data which can be used to basically create a.i. to hijack your biometrics that puts you in a vulnerable position >> now, she says that the pandemic work from home world with all the zoom and teams video meetings we are doing, it all makes us more vulnerable than we have ever been before. >> you are even talking about content, that is so sophisticated that you probably wouldn't question it anyway. a dodgy email from the bank of

nigeria say tsaying that you wo the lottery. this a video of your boss telling you to do something, or a call live from your boss telling you to wire the money. >> for now, the fbi says you can still spot certain flaws in the fake videos like this in the photo from their warning notification where you can spot flaws around the ears that might not be perfectly formed or blurriness in the background of the image. soon, it will be impossible to tale what's real or fake she advises training employees to be critical without being cynical about every image online these days seeing is no longer believing. back to you. >> okay. man, you scared the heck out of me there, eamon. your beat is going to get more and more interesting and more and more scary thank you. eamon javers let's check in on shares of at&t this morning they are having a big day for at&t certainly investor day today, john stankey, the ceo joined us early

our on "squawk box." 23 billion in payments this year for c-band spectrum, 27 billion overall, gross capital investment of 21 billion but he says, hey, we can handle all of it and we can fund the growth that we need to take a listen. >> if i was having to make choices around not funding growth and investment then i am not doing may job properly we are in a great position right now. and even with the slightly higher level of investment and c-band, than what we expected, the reality is that's a year's worth, a little bit longer, but a year's worth of deferral in getting this towdown our ultima ratios we want to get to on balance sheet. >> speaking of that c-band auction, t-mobile claims it won. its ceo mike sievert joins us after this break stay with us

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verizon spends 54 billion, at&t 27 you guys come in at 10 and you claim that's, that makes you the winner why? >> well, it does we are so delighted with what's unfolded and what we have seen in the announcements it shows the value, the extraordinary value of what t-mobile has our competitors just spent a combined $80 billion trying to catch up and match us, and they fell short $80 billion and still falling short. and i want to make sure that point out we didn't just leave this with the most mid band spectrum we left the auction with the best mid-band spectrum our 2.5 gigahertz spectrum is 50% better in most use cases and yet we have more than anybody else it's really terrific because we have taken it and run ahead by about two years with the best asset base in the industry it's going to make us famous for the network in the 5g era.

>> does this mean you don't need for spectrum at this point there will be more for sale perhaps alater this year. >> we are more than a million square miles ahead of at&t covea record pace, at a pace no company in this industry that is ever done. so we started ramping up this engine two years ago, and now it's running at pace while our competitors just seized some assets they didn't catch up but just seized some assets, but they're way behind now to your question, yesterday we announced a business plan where we demonstrated massive cash flow potential with very reasonable assumptions, assumptions that don't require us to catch any unicorns we just go do what we've already demonstrated we do and we'll unlock massive cash flow potential in this business and we have everything we need to deliver that business plan right now.

>> mike, i'm curious about the push into broad band how quickly can you deploy what markets are the most key for your strategy, and how big is that opportunity what could that growth opportunity look like over the longer term? >> well, last week we announced our work from home solution, and so we just started our rollout of home broad band for business home office workers, and that's across more than 50 million of the u.s. population that will rapidly expand nationwide. it's such an exciting thing. now work from home workers no longer have to share the wi-fi with their kids. that's so important. and they also don't have to worry about security if they own enterprises. they can get their home office workers a secure connection. later this month as we unveiled yesterday, we'll be announcer our consumer launch plans alarge a large swath of the country, market plans, et cetera. we're excited about what's ahead in home broad band from a timing standpoint we're way ahead of the other new entrants

>> so whether we're talking about broad band, about plans to increase the share of smaller markets in rural areas, i know we're coming off of this spectrum auction and some of those key contracts you just won, but at a time where you have space and starling constellation, one web and a number of others that are looking to put satellites into orbit to beam things like broad band down for increased connectivity, is that something that you see as possible competition or something you see as a complement or potential partners to your business? >> it could be a complement or a future collaborator. ultimately for the core mainstream broad band connection it's going to come down to capacity and those emerging technologies won't be able to match on capacity, but they'll be really great augments for places that macro networks don't reach but capacity will be the game. and nobody has the ability to deliver more capacity to more places than t-mobile and that's just so great this is a company that used to be a scrappy upstart now we're the number two

provider but can w the best asset base in this industry. >> all these positives that you're saying, mike, and i hear you and of course the scrappy upstart now 150 -- almost $160 billion market value i look at your revenue guidance, and it only appears to imply more than 4% growth. i had hans on yesterday, verizon is pointing to growth not far from that. are you no longer that scrappy upstart and, therefore, going to just kind of post revenue growth that's kind of keeping in line with the rest of the industry? >> well, i love the question because it sort of demonstrates the place we've arrived but it also demonstrates our take on guidance for eight years we've always put guidance out there we're really confident in we've never put a number out there we didn't beat and it's one of the things that sets us apart. we're really transparent about eight or nine areas of upside that we see, that when those things come together could generate even more growth. when i mentioned we don't have

to catch any unicorns, we don't have to see any revenue at all from all of these 5g uses and yet we're chasing all those things like verizon and at&t who need them just to meet their guidance >> and a significant buyback a particular in terms of building out the spray because you've been outspoken in saying verizon is going to need densefication. a lot more cell sites. a lot more money maybe even more uplink, spectrum and the like hans yesterday said no so who is right? >> well, i think he's right because it's his choice. physics are physics. he can choose not to densefy, which sounds like the plan, which means they won't have a competitive product or they can arrive with a competitive product. that's just a choice i think what we heard yesterday is what his choice is. and it's a great situation for

future t-mobile customers and businesses >> -- compatible phones out there from iphone and the like from apple but what will it take for americans to actually be adopting and using 5g, and, i guess, how does that compare to enterprise getting involved more quickly? >> well, it's happening so fast now because substantially every device you buy now is 5g compatible and what we see at t-mobile is a picking up in the switching environment and the upgrading environment this year. a lot of what we've been talking about today is america's return to work. the phasing down of the pandemic and as that starts to accelerate that's a huge opportunity for t-mobile remember, we're the net share taker in this industry, and we've been harmed by the muted switching environment over the past year. as that begins to abate people

get more phones. that means 5g and a return to the switching that has always fueled our growth. >> what does that mean in thames of security implications longer term, too, with so much more connectivity than 5g >> well, it's a great part of the 5g story as i was saying before right now work from home workers, they have to connect to the same wi-fi the rest of their family is on in order to conduct business and we know that post pandemic there will be a lot more work from home than there was before. what we're offering is a 5g connection that's dedicated just for that home office worker and that can be controlled by the enterprise no more sharing the wi-fi with kids it's a breakthrough. it's really important. >> your upgrade rates are not at record highs or record lows. you talk about that apple cycle. it's not here yet, is it >> that's right. i think it's partly a function of the muted switching environment. people tend to make changes at a similar time frame that they make changes in their carriers and we really are excited about a return to retail

certainly that is upgrade but fuels switching. i think we're a company that's poised to benefit from this now realization that i think the market is seeing that it's time for everybody to get back to work it'll happen over the next few months, not tomorrow morning, but you can sense it now it's here. >> you sure can. we appreciate you taking time with us from your busy work day. thank you, mike. >> you've you bet. good to see you. nasdaq's lower but dow record high. when we come back it's beeple when "squawk alley" starts in a moment we see engineers simulating

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