hoyas, joe so this was a nice distraction i don't know how i'm going to pass the time till saturday. congrats to pat ewing and the team. >> he owns his house. >> that's his house. >> i know. i do have them progressing they are peaking at the right time i think and michigan state and all these great teams trying to get in the former leaders anyway make sure you join us tomorrow "squawk on the street," bye, is next ♪ good tuesday morning, welcome to "squawk on the street." we're on watch for a bit of a consolidation today after six straight record closes for the dow. nasdaq at a two-week high. a fed meeting beginning. winter weather brings disappointing retail sales on this anniversary of the worst dough point drop ever. road map begins with the fed

though morg stanley speculated the fed could raise rates sooner than expected. >> and shairs of apple moving higes of apple moving higher signaling sustained growth the next few years and purdue pharma producing a $10 billion plan to exit bankruptcy i'll give you the details and an exclusive interview with purdue's chairman steve miller in a few minutes the market action this morning. jim, our producer tells me today if the dow can rise today, that's eight a straight gains. we haven't done that since september of 2019. >> air shines of turning quarterback. next profit the next, housing boom is different. next, positive article about tesla. another one, china, don't invest there. the money is coming here and i just think when i hear

that i know people will be saying wait a second, that is a bad sign, or they will want to take the other side of the trade. but i listen to scott kirby this morning in united air. i left hand to the upgrades of the cruise lines and how they are able to raise rates and i come back, you know what, it is a good time to invest. sorry. >> i understand why you might think that it is a good time to invest, given the potential avalanche, by the way you didn't even mention of cash that may come in, as a result of some of the checks that are going out right now. not much of it but enough of it can make a difference as well. >> it is going to square cash app, bye. buy robin hood, cash up a buy. there are people lining up to get into lucid air cars. my car anybody see that on twitter? i'm interviewing lucid and who sneaks in?

>> i wond how long it would take for him to get upset about this. >> 9:01. we hit it quick. >> it happens i do have a relationship with the sponsor of this fact that took lucid public and he happened to be here mr. klein. and he called me and said come out. and we have known each other a very long time. >> -- >> -- can was there. >> i like michael klein until just now i did not know that. >> and then i got in the car and i took some pictures what's the problem is there a problem >> no, but i bring this up carl for a particular reason. you do have a genuine excitement we could say we have genuine excitement 1999. a genuine excitement of a company that has $5 billion, largest cash can build three assembly lines this if things work out. this is different from aye 99. i hear people say it is the sam thing. but there is a lot of smooth

operators doing the same things. and if you are a 20-year-old kid getting the stimulus check i bet you buy lucid over tesla >> gonna happen. >> lot of headlines in the auto sector we'll get to later in the hour guys one of them is just the capital reyes new stock over over nikola. comments from bmw and ford about the chip shortage. big note out of the morgan stanley today that argues fed rate hikes could come not in '24 as most think but maybe as early as q 3 of '23 and maybe sooner. >> i'm watching some of the companies where the earnings are being pulled through

and you have to just look at these airlines and make a sense that 2023 is going to be rhett the cruise ships 2023 they could reflect in 2022 i think things are, i like the costing view, the golden view this is going happen but we can sustain it. i do think though. and i do think there is so much to like. david did you see the price target raises for caterpillar, deere, couple ps those companies are doing terrifically too >> the names i want to know are the ones not fully -- you know how much of the airlines reflecting these expectations, how much are the cruise lines which are not down anywhere near a year ago you thought it was over for a lot of of these business for a long period of time and of course the stocks did get crushed then but right now there are levels that are really not down that much from where they were.

>> right -- >> so my question becomes, all right, and normalcy, they are going te to get back to 2019 le levels in 2025 >> that's wrong. >> i'm wondering how much you are willing to pay for hem and how much they are already reflected the opening trade. >> nothing good has happened at boeing couple of orders but everything else, this and that. i think you have to look at your social calendar. that's what you have to do is there a weekend that does not have some event that's been postponed? is there a weekend where you don't have to buy a present for someone? is there a weekend where you don't have to get on a plane and that plane is not going to be fully sold it is not gland for your house or buying a car. it is pent up demand for every event that's been postponed. i have four weddings this fall four weddings. and they were all supposed to be last year. >> i get it, jim

and that's one reason why a lot of the headlines this morning out of the airlines aren't about traffic but about fares, southwest seeing fares trend up. american air starting to push up the domestic pricing united as you said kirby, summer ticket prices rising on higher demand they argue if you are going play the airlines the best two ways are alaska and ual, which are still doing discounts to the historical multiples but the index overall is up almost 40% for the year. >> loobk at these second rate retailers. they are blowing through levels before the pandemic. because they are the last people standing i listened to kirby this morning with that excellent review and i said wow i thought this had moved too much no i think it can go up further. i do think boeing is going to be a storehold of planes people need it is not that i'm so bullish. it is that people are going somewhere and doing things and a

lot of it has to to do with things that have not been done in the last year i have a discussion you might have liked with andrew ross sorkin this morning. i've left hand to ray maguire and i think i want to be mayor of new york. you may just get a lucky hand here. >> we can only hope though one of them gets a lucky hand. andwell i'm not gonna -- yes i think still this is a pretty tough road ahead. >> because why >> any number of reasons including tax revenues property taxes are 42% of the overall revenue base for new york city. 66 billion for state and federal aid for a 90 something budget. they are still facing a difficutime it becomes a negative cycle. so i'm not sure you want to take that job

but certainly hope whoever does is going to have the wherewithal -- >> -- to buy >> say again >> all thedy big declines we've had in new york -- to buy. >> they were and this may prove it again. but again i just come back to the numbers, which the political candidates for office may not want they may want to run away from the numbers. maybe it is a good time to borrow but you have a fixed number for the budget city of new york about 21 billion at least between pensions and benefits. it is just tough and i do happen to look at those numbers a lot. it is an interest of mine. back to our numbers. what about apple down 66 and a half percent this year amazon down over 5% this year. the growth names netflix down 4% this year. when, and do we rotate back to -- higher growth but you know what i mean. the growth names that have led

so long. including a course fang. and apple a strong number spohr. >> they are doing such business with google cloud services, they are now mentioning google cloud in the same sentence as web services by by far the best of the f.a.a.n.g.s. you have to give it at least a consumer product multiple. i thought it was a common sense piece. >> you have been saying that for years, jim that it would eventually get a

staples multiple but that do go to 175. bull case 225 out of a meet. so to your larger point, about apple. by the way, and we're going talk to meet later this morning on the 11:00 a.m. hour. the fox con chairman in the meantime, jim, addressing questions about the apple car. says it remains a rumor. but over at web bush today they are trying to gain the saddle. they believe apple is going to wind up with wv as they engage what they are calling the ev dating game right now. >> lucid on tonight. -- earlier but this volkswagen. volkswagen is huge and they are going all in and when i spoke to peter rawlinson this whole notion that we are going to be from 3% ev to two in the next five years 6%. david i challenge that you do not have volkswagen wanting to sell a million ev in 2021 and believe that we're gonna have this big of an

internal combustion engine strength i'm telling you that internal combustion david by 2030, major impact i've been saying this on energy. i've been wrong. because energy doesn't work based on 2030. but you don't have all these batteries and think that we're all going to be pumping gasoline. >> no. but you know how much of a percentage of a barrel of oil really goes towards that and if you don't mr. woods and mr. worth are happy to tell you. >> what? >> and then the numbers. we'll have to see what we really look like in 2030 in terms of what percentage. it is not just new vehicle sales which will be a large percentage the vehicles we have right now are lasting a long time, jim. >> we're all going to go ev. period all. >> when we come back guys, david's interview with the chairman of oxycontin maker purdue pharma on the company's bankruptcy reorg

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12.7 that was, as i said, april of last year. but this somewhat makes sense. whether weather related, supply issues, these are all having an impact but the weather side is going to slowly disappear. on utilization rates a huge miss as well. expecting a number albert 75 1/2 73.8 that is just unbelievable weak and takes us back to numbers we haven't seen in a while remember pre covid these numbers were in the high 7s, 76, 77. a big miss there watch the interest rate complex of course because these numbers will not be lost on chairman powell and fed beginning the first of our that day meetings >> late overnight, involving purdue pharma. our viewers may recall this is the company behind oxycontin and

one that's been in the sights of regulators and state ags and many other leaders for being behind the opioid crisis or in part that's swept this nation with such unfortunate consequences, including over 2020 again where deaths were extraordinarily high unfortunately from things like fentanyl why do i mention they have come to a settlement at least they hope it is going to be bankruptcy court. they have got to get the creditors to all agree they seem to believe they have it involves a $10 billion contribution essentially from the company towards opioid abatem abatementment. i sat with him months ago, take a listen to mr. miller as he

pland why this is the keel everybody should be happy about and accept >> question have designed this program where the money all goes a national opioid aabatement trust from from that distributed to the groups but under a guaranteed commitment anyway the money will only be use forward opioid abatement purposes. never before have you seen this amount of money, $10 billion being devoted to opioid abatement. only available through this plan when people think i think they will come around to the notion of well i might have liked something slightly different but this is certainlily a lot better than going into endless costly litigation that may end up with no proceeds going to anybody. >> that is the key the he's

going to continue to emphasize the entire interview available online we do have state ags already coming out in opposition or at least saying they are disappointed and that seems to be the press releases from across the board here from many states that have still stood in opposition. we're disappointed on this plan. while it contains improvements, falls short of the accountability that families and b survivors deserve. now the sackler family of course that was at the heart of purdue increased contribution from some 3 billion to 4 $1/2 billion. 225 million going to into the doj but the remainder into this fund and then a plan to put current purdue into a public trust it is still selling oxycontin,

jim. it is still going produce naloxone and the other drugs that can be used to help when somebody is suffering from ab overdose and the money that will be split off from that public trust will go towards this as well. but some states say just sell it they don't want it to be under any sort of government oversight of any kind. they just want whatever the remaining assets are to be sold. >> you interviews steven -- who is an old hand and not some. >> no. he had nothing to do with the operations of this company years bag. he oversaw christ ler, aig he is still at the top of his game at 80, mr. miller but this has been a tough one no doubt. >> i remember your september 2019 interview he traced out what we wanted to he's been true nout the e whole way. and i think people should understand that he just said over and over again. this money goes to the right people what more do people want, david. >> the states apparently want

the sack lers to pay even more and that's been a key contention and they are threshold disease some opposition to the idea of the company continuing in some form, even in the form after public trust but continuing to be what it is as opposed to just having it sold >> 80,000 overdose deaths last year in the united states. many of them from the sympathetic opioids that unfortunately have done so much damage to so many communities around this country. >> yep numbers don't even begin to tell the tale, david. well said. we'll take a break getting headlines this morning on the astrazeneca vaccine out of regulators in europe.

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minutes. let's get to my loosed dream driving friend over there for a mad dash.ucid dream driving friend over there for a mad dash >> offering 200 million dollars in common shares today

this is an incredible drug melts under your tongue. gets rid of the migraine no one even knows this company but does get rid of the migraine typically in half hour offering stock near and dear to you bio haven. if you wanted to worry about what could happen in this market this happens to be company stock but a deluge of stock is snot what this market can handle. even though i think it can handle. >> although there are some companies that would be well suited to doing an offering when they are stock prices are up 155% or more i'm just saying. >> i agree with you. but ryan cohen is a genius and the fact that you can criticize him by suggesting they need money.

>> i was actually talking about via ccom. >> how do i get an interview >> you know what, enough with the sob story. okay you take every single thing. you are just sad i happened to walk it to say hello to a friend of mine and the car was there. i apologize. >> i am bummed lock day. >> enough with that. get that off i look ridiculous. >> -- did he go over all the flaws with you sort of because they are still working on so many things. there are so many things in a car that have to be perfect. who knew. >> all i know when we were driving 80 miles per hour, 0-80, i got thrown

almost thrown right through the car when he did a quick sharp turn and i loved every minute of ismtd. >> like a bugatti. >> there is the opening bell and a look at the s&p at to bottom of your screen jim, sticking with the car theme. ford today did say if the chip shortage, and we're going listen later on to what lisa sue told you about it last night on "mad money. now they are looking at impact of as much as $2.5 billion and news out of gm yesterday some of the models off the line may not have the fuel management software to. david's point there are 3-5,000 components in a car. if only one of them is missing that could keep them off the line. >> and ford seeking debt offering i expect that to put pressure on common stock lisa sue as she said, she is ceo

of amd they have everything other companies a shortage maybe they are working around the clock. i don't know david you know. >> qualcomm had -- >> -- need it. >> -- six in my head but that was the number 127:50 yeah >> he tried. >> wasn't allowed. >> we keep a close eye on the anti-trust regulator in china these days they have a deal still there,. >> is here is what least told jim last night

. >> lot of the investors say wait a second, jim. you talk about this chip shortage endlessly that good or bad for an actual chip maker is it good or bad for amd? >> it's good very very good we're excited people want more of our products. you can count on us ramping up production capability to make sure wee get overall supply matching demand. and you can count on us growing every quarter this year for that reason. >> there we go and look the stock is down almost 10% for the year. it was at 99 it is making a deal that will make it less dependent upon ga gaming pcs there anything you can buy yes. there are companies that benefit because they can charge more there is demand. terrific presentation by

>> bullish the entire way since it took over. >> carl at five dollars, lisa sue took me to the wood shed told me to get off the intel hofs horse i was out of my mind i hadability done enough work. i got schooled and when i was finished with the dinner i came home and said to my wife, i am on the wrong horse. i'm back in advanced micro and she's a few blocks from you. she's from queens. and what are you doing with the intel then lisa sue is obvious. and boy was this ever right. and david who didn't follow his queen's instings, jack lew probably so excite this morning. >> -- even closer to home for

me yeah. >> lisa sue is amazing my ceo of whatever age you want for years. i don't know, five years the only person can go near is jensen wong. they are not related there is a story they are related that eat nvidia another one without a blink. that's nvidia. they find stocks and make money. and we have to present them as opportunities when they are down. >> to that point, if in fact you have been along for this entire ride, if you were lucky enough to just not sell at some point don't yaw want to take some profits here. >> she has a road map. a multi year road map. and i know intel is breathing down their necks pat gels ger will tell you, he's got the emoji. no it is not about mojo. it is about orders, it is about partnerships it is what about lisa sue has done in the interim. and they still run hard. they run aggressive and i've got

to tell you, carl. this stock, this company still the one to be in particularly when those stexiling steel closs terrific they are accelerating in the rv and i think this is one people are leaving behind, even though the chip shortage is a winner for them look at thatdip. >> i'm on the good side of those. let's alleviate it there. >> -- diamond hands. that's one thick not to go shopping but you got to know diamond hands at this point. >> carl, i need your help. if you are here physically you would help me. during a commercial you would turn to me, tell me what the

heck is going on what can i tell you. we can't do this -- >> -- >> -- yeah soon. >> we're going to get there actually -- david, we're going to get there with the help of more vaccinations. of course the trend continues to be positive. i mentioned jim earlier, these headlines from the european regulator about the azm vaccine. no indication in their view that the blookt issue d clot issue i. and moderna testing on kids 6 months and 11 years old. and fauci has indicated the new study could be something you could begin doing for kids of that age maybe before the end of the year. >> look, i marvel at moderna and what they have done. now beginning to know more people who have gotten shots by the way that haven't my daughter astrazeneca in spain, ten million people, no side effects i'm not saying there is -- well vaccine's got to work. but i will say we're beginning

to broaden the number of stocks that are being talked about on wall street bets they are finally talking about things like papal which is going to do tremendously with this new checks that are coming.ypal whis going to do tremendously with this new checks that are coming. as the remarkable time and the money is companies and it is going to i think to square for sliver os bitcoin and companies like moderna it is not going to go to f.a.a.n.g., carl and that is what i think is ailing f.a.a.n.g those are considered to be we should be coming up with acronyms fuddy and duddy. that is what f.a.a.n.g. is today. fuddy and duddy. >> reminds of the b of a fund manager survey today which says the biggest drop in tex exposure in 15 years first since last february the number 1 tail risk is not covid. it is inflation and a

potentially temper tantrum. >> got to keep buying caterpillar. deere, adco, cummins those are the binners and it is happening right now. those stocks continue to get boosts a lot of analysts cut their price targets so big that now they are coming back and the price increases, you know, united rentals goes from 265 to 360. caterpillar. this thing is not even had an inflection in earnings yet and it is going up and they want roblox and they don't, you know, amazon. they don't they look at nefk and they think give me another channel.tflix ay think give me another channel. >> well that may be shortsighted. >> what? >> in general. >> i agree but who am i? i'm not -- or droid build seven

or --. gave money to save the gorillas. that was a cause. >> was it? i'm mind that a 100%. >> you're not anti-gorilla >> no. >> good. this is something he and i agree on, carl. >> a carl before we head to bob. spac land. pem tech acquisition, core five is up about 17%. the betsy cohen mentioned earlier. and people like the deal this is a company that was said to potentially be ready to go public at the $5 billion valuation not long ago now it is valid at $10 billion roughly i've got it about 9 or 10 times 2022 numbers.

and we're going to be joined by the founder and betts sy cohen >> it was a year ago today, jim that the dow is down 3,000 points s&p was down 300 points. worst ever loss for the nasdaq on a percentage basis. the vix was 80 plus. jim talked about all of that on that market day on "mad money" a year ago ago take a listen. >> i want to be sure you understand my view okay not only are we not out of the woods but if you are in travel, leisure, entertainment, restaurants, okay, hotel, aerospace. bad. all right? bad. i don't have anything good to say. i haven't had anything good to say since the super bowl and i redouble my not having

anything good to say >> wow >> jim it kind of points to what you have been saying in the weeks leading up to that and that was this was a biological crisis. that you were more interested in vaccine news than say fed support news and man did that manifest itself on that day. >> yeah, i was with some people who were at my birthday party for an -- lot to do with medicare and they were laughing that i was in february saying listen, hell is coming no i didn't say "hell is coming." i never did that but things are very very bad and even here, who laughed at me as a scaredy cat but do you know who watched the show and believed. j pal, steve mnuchin took action. >> they did. broke the glass on the plan and came to. >> -- wedding? >> it wasn't a wedding >> broke the glass. >> got out the emergency --

>> i thought they stomped on -- >> no. no no there was no stomping going on, jim. but what a time -- >> and yes he's take an lot of shots at me today but i'm going to have to wait for the next big birthday to make amends for my next toast carl you were there as well to caulk back all of those jokes that i was able to tell. which obviously he was -- >> i was the butt of so many jokes by david i wish we had a tape of that oh my -- he's worried, he's worried. he acts as if it is going to be an international pandemic. >> not funny actually. >> the picture is much different today. s&p record high. let's get to bob pisani. hey bob. >> hi guys tech is back but the russell is weaker and the reopening trade a little weaker take a look at sectors here. you can tell momentum is back when you have tech leading, china leading and the i poe

market is back too banks is energy. industrials is weaker materials weaker here. the bottom was march 5th and 8th for the sectors. oil stalled out at 65. energy is having a little bit of a tough time i wouldn't say tremendous bu certainly flattened out the last few days your big beta names like ox dental having a tough time. and vix below 20 t lowest level in a year so there is another sign of easing concerns.

we were at 20 in february of last year. the bank of america fund manager survey global fund managers every month and what's really interesting about the survey this one, the biggest risk is inflation and a temper tantrum wait a minute, the biggest risk has been covid for 13 months covid is not the biggest risk anymore? that is the change in attitude inflation is the biggest risk now. 2 1/2% is where bonds would be very attractive relate to stocks the guys were talking about march 16th, 2020 that was a wild week for all of us on the floor. we had three circuit break

halts, on march 16th two the week before as well. we'd never seen anything like that we were dusting all the circuit breaker rules frantically. the dow was down 12.9% that day. second biggest percentage every. the biggest was 1987, dropped 22%. the s&p dropped 12% t third biggest and it was the biggest nasdaq percentage drop ever. and of course that was a big, big day here remember something about the s&p though as bad as that day was, it wasn't the bottom. we didn't bottom until march 23rd a week later so that overall decline was about 34%. february 9, 20 to march 23 was about a 34% decline and up 75% since then if you want aless sob from all this so fast and big was a what happened a breathtaking drop but then the

feds in big to save the world. remember that week it was announced the fed institute ad massive stimulus program monetary stimulus program and they cut rates to zero essentially and unveiled plans for big asset purchases. big drop, but a big return and lot due to the very aggressive action by the federal reserve. carl back to you >> remarkable to think back to that day a year ago. rick santoli its been a decent diet of eco data today. >> lots of eco data. if you look at the enter day of tens it is rather sarcastic. kind of chop there wasn't anything great. what i was amazed it didn't show a downside in yield upside prize. hopi hoping to chart up to three sessions starting friday and the deterioration has been small and that is a the pointal not big reflections and not big

corrections. a longer view. 10 more 1 morant a nice bias there. this is beginning of march if you look at beginning of march and boons, you can see the difference there the reason i did it that way is because one is moving to the upside in yields, one is more to the downside in bunds. but bunds are still significantly higher than they were three or four months ago. the point we seem to be leading the way to higher interest rates and some extent firm equities and what is the dollar doing through this this chart starts the last fed meeting. even the fed is dovish the market of interest rates has been more hot. the dollar siding with interest rates. carl, jim, david, back to you. >> thank you very much tech is definitely doing some heavy limiting today making up for losses in banks. energy, industrials, s&p record high we're about 24 points away from s&p 4,000.

for though those who don't yet know, diamond hands is a common emoji the ability to withstand losses without fear >> exactly it's the type of thing that tells you gamestop, if you sell it, i don't know, there's a perg tory, a place in hell. it's dante's hell. david, i'm trying to get you out of it. >> thank you >> diamond hands, david. david, if you don't get into that world, there's 9 million people in that world >> gold finger now >> 9 million people. >> 9 million people who have diamond hands? >> no. no who aspire to have diamond hands. >> okay. now i know and i appreciate you guys explaining it to me keep me informed have we figured out what the ice

cream cone means with the frog >> no. >> how is it -- yesterday gamestop got hit so badly. we have to find out who the sellers are and take them to the wood shed. >> viacom up 163% this year. over $60 billion market value for viacom a year ago the stock was around 11 >> well, i have dow chemical on tonight, and stock was at 22 and they said listen, i think this is crazy. you got to buy -- i'm buying a huge amount of stock we're doing terrific sure enough, caught the bottom stock is at 62 there are some remarkable recoveries here. is it still too late i don't know yield is 4.45. you didn't need diamond hands to be in that one carl, we're teaching him >> yeah. david knows. i was thinking of starbucks too, today. a low of 53 a year ago 111 and today btig goes to 130

as they see a material acceleration in comps. we'll see if we end up going to work, we're going to need coffee >> starbucks bottomed that day when a particular hedge fund manager came in on our air and said it's going to be a tough moment that's exactly when it bottomed. i am not going to name names anymore, because i'm tired of getting phone calls because i don't like speaking to hedge fund managers. >> there's a look at the open. we're back in a moment my retirement plan with voya keeps me moving forward. they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. voya. be confident to and through retirement.

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look at some of the leaders. micron is going to be first here almost a 5% gain semis making a stand here. in addition to some reopening plays. limited number not everybody. starbucks is up a couple percent here even as the cruise lines are giving some back a lot more "squawk on the street" continues in a moment.

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all right. jim j lucid tonight. >> yes, also crowd strike. we'll find out what microsoft has to do with the different problems at dow chemical pe peter recallenson is fun and fast everyone should watch this it's going to be unbelievable. it's the one i love. lucid air. what a car what a car put david in the trunk and put

david in the front doesn't matter there's two boots as we like to say. >> there he is in the back yeah >> i'll drive it year round. that's where i'm going to end up as your chauffeur. that sounds about right. >> why not >> sounds about right. i am going to go 0 to 100 as fast as possible and knock you -- >> zero to 100 without a problem. right here in the parking lot. i love it. >> man, i'm glad the booth is able to have a little bit of fun. we'll see you tonight at 6:00 6:00 6:00 6:00 p.m. eastern. welcome to another hour of "squawk on the street. business inventories out a couple seconds ago let's get to rick. >> they are up .3% matching wantations exactly remember, this series should continue to be relatively firm we know we need to build inventories because demand post covid is going to surge even more than it has with the

partial reopening. a positive revision of .6 to .8 in the rear-view mirror. now march sentiment index home builders and we get to diana home builder sentiment fell to 82. anything above 50 is positive. rising interest rates and higher cost for lumber is weighing on the builders sales expectations in the next six months increased 3.83. and buyer traffic unchanged at 72 supply shortages and high demand caused lumber to jump 200% since last april record low supply of existing homes should favor the builders but rising mortgage rates and higher prices are hitting buyers on the low end regionally on a three-month average, builder sentiment rose

in the northeast, fell everywhere else. thank you. we'll start with the reopening trade. the ceo of united airlines saying it's time to pivot to growth we caught up with scott kirby earlier, and phil has more >> the airline stocks are cooling off a little bit remember, these stocks were all at 52-week highs yesterday almost all of them it's not surprising that we're seeing a little bit of a give back today when we did talk with scott kirby earlier today, we talked about where is this transition what are you noticing in terms of the increased demand that's out there? here's what he said. >> i think it's pretty likely that the cash burn trajectory will continue to head up to the right. and really, but as long as there's not a setback, i think we're on the road to recovery. and we can put those days of talking about cash burn and layoffs and things like that largely in the rear-view mirror. >> talking about the fact that they are now core cash flow positive they've gotten their one-year

after -- a year ago they were burning through $100 million a day. look at the passenger levels in the u.s. five straight days with more than 1 million passengers who have been screened by the tsa. yesterday when we talked with doug parker, ceo of american airlines, he indicated that he sees this being a transition where the improvements continue as people get out with the vaccinations >> we are certainly seeing improvements in demand as vax naxs are increasing. our last three weeks in america are the strongest three for bookings since the pandemic hit. and each week has been stronger than the last. real momentum. it's largely leisure based as of now none of the ceos we've talked with in the last couple days said they see business travel coming back any time soon. they are hopeful perhaps six months, nine months a year down the road they hit an inflection point where that changes and again, look at the airline stocks they are all cooling off a little bit after basically all

of them hitting 52-week highs yesterday. phil, fascinating stuff. appreciate that. speaking of the growth, it has implications for the concerns about inflation. it feeds into our fed survey steve liesman has that today >> good morning. yeah more growth and inflation are on the way according to the latest cnbc fed survey along with lower unemployment and a forecast for a quicker tightening of fed policy gdp cranking up above 6% this year from a decline in 2020 of 3.5% it rises above 4 % in 2022 as well two good years on the way according to the forecast. unemployment rate, it ticks down from 6% now to 5% by year end. 4 .35% by year end of 2022 jim paulson writes future demands augmented by massive savings and healthier balance sheets could produce a sustained

multi-year period of stronger real and nominal activities but a another chief economist writes the fed is trying to convince the markets that any inflation upturn would be a blip since confidence may be overstated surging demand could trigger higher inflation expectations. okay so the 43 correspondents see inflation ticking up to 2 .4 % this year and it stays there in 2022 according to the current forecast up from 1.7% now the cause of the changes mostly the 1.9 trillion in new relief ushered in by the biden administration we asked our respondents to gauge the impact estimated 2 % to gdp growth and half a point to inflation. and it lops a half a point off the unemployment rate. all of this comes with a belief the fed will likely begin this year to reduce the asset purchases and hike rates in late 2022 the forecast ahead of where the fed seems to be.

so that could be a bit of a tension between the markets and the fed. back to you guys >> steve, quick, i wanted to get your take on this op ed by former vice chair blinder. he says he's guessing but he says the fed will be perfectly cope settic with rates, inflation rates as high as 2.5, maybe higher for two to four quarters it's a three handle that makes them nervous how much street credit do we give them for that >> i think allen probably has a very good idea of what the fed is thinking. he's been there. he knows those guys. this is a very new regime we're under. not anything i've seen in the last 20 years of covering the fed. the fed is aiming for higher inflation. take them at their word. jay powell says he's aiming for inflation above 2% for a while i think that's what he's aiming for. we'll see really if the market and the body politic allows him to abide that higher inflation number >> steve, when you keep

referring to gdp above 6%, some 6 .5, whatever it is i just wonder does that create its own new dynamic of growth? i guess that might be reflected in the more than 4% gdp outlook for 2022 is it unchartered territory since it's been so long since we've seen a number that high? >> it is, and it can create its own growth dynamic if the people doing the business and the investment believe it will be sustained. what you don't want to do, david, is go out and build a factory or open a store because you have temporary stimulus there. if you think those numbers are going to be sustained, then you might expand as a result it's one of the problems of temporary stimulus it's hard for businesses to make a call on whether they ought to invest behind. >> that is a good place for us to start the conversation with our next guest thank you. with president biden's stimulus package passed, they are turn og

infrastructure among other things the next guest calling this a moment to invest boldly in a future that is more sustainable and equitable. ceo of siemen's usa. >> great to be here. >> i want to talk infrastructure and the open letter you penned first, we heard housing data we heard about air travel starting to come back. economic growth forecast for the year looking stronger than initially expected given the fact that you have so many customers across so many industries here in the u.s., what are you seeing in terms of the manifestation of that recovery especially given the fact that it was really the industrial and manufacturing part of the economy that sort of started that recovery in the first place? >> well, that's right. you know that throughout the pandemic siemen's has been on the frontline helping our customers respond to both response and recovery. and so we were doing everything from helping data centers expand to meet the demands of this

digital transformation to helping manufacturers as they ramped up production of ppe, pharmaceuticals and medical devices. and, of course, we've been very involved in developing tests and tools that will help the nation respond to coronavirus and so what we've seen is that this has been a moment that in, of course we've been disrupted by the pandemic, but we were already on a path of digital transformation and of course, we've seen these transformations actually speed up. a compressed transformation, if you will, throughout the coronavirus pandemic so here we are helping a nation deal with the next phase which is reinvention we have a brilliant moment ahead of us to take advantage of all we've learned throughout the pandemic and actually build forward, build back better and we're seeing the opportunity to do that not only through

technologies to open up schools safely and that same technology can be used for buildings, but also to help ensure the continued health and safety of our manufacturing work forces and perhaps even the transformation of rail infrastructure >> yeah. i want to get into all of that first, though, i mean, just given this conversation we're having with steve. if we say 6% gdp growth this year especially on the back of trillions of dollars on stimulus plans, cause that incentivize siemen's usa to make more investments this year? >> we are deeply invested in the u.s. we've made over $40 billion of investment in the last 15 years. we've been here over 160 we see the future as being strong yes, we believe some of the growth trends that will come are going to naturally lead to our growth here in the u.s >> increase in significant

infrastructure spending, i wonder whether or not you have a sense at to whether that is possible given the split we see in congress, the last bill obviously went through reconciliation no republicans support it. do you have any sense in terms of the political will to get something through a senate where it could require 60 votes? >> we've always seen that infrastructure is one of the most bipartisan topics we have on capitol hill. and we also know that there's never been a more powerful moment to invest in infrastructure you see, at a moment when we are making decisions about how to invest, how to spur the economy, how to ensure we get back to prec precovid conditions and perhaps grow stronger, we're seeing infrastructure, a dollar invested would yield close to $4 worth of economic growth so there's no better place to invest so we're confident that the -- all of the motivators and drivers are aligned, and that in

this moment, we have the chance to consider topics that are really vital to so many legislators. equality, and sustainability making sure that we're dealing with resilience, the reliability of our friday, of our transportation systems again, a powerful moment for investment and infrastructure. >> which, again, i think speaks to the digitizing of everything that we're seeing anden the acceleration of that trend that the pandemic has basically triggered here in terms of if we do get an infrastructure deal, how does that position siemens whether it's through technologies that you offer to companies and governments or through some of the products that the pandemic has made look even more attractive >> siemen's is unknown to so many people, but we have technology in the backbone of the industries and the infrastructure that support this economy. so everything from manufacturing

to buildings to the connection of the grid in decentralized grids, these are all powerful technologies that are going to be helping us in these coming months and one of the reasons that i penned my open letter was to help raise our hand and demonstrate the kind of capabilities we know exist today that can be brought to the table. >> the idea of a digital twin, i'm going to nerd out, the idea of a digital twin which you also propose in the letter that not just having a national stockpile of emergency items, of physical goods but to have a stockpile of digital ones, what would it take for the government to do that and given the fact that we're in the midst of all these state sponsored hacks, how do you keep it safe? >> you -- we are actually today in possession of tools that will help us drive this vision. secure tools for manufacturing that allow us to capture the intellectual property of makers everywhere we're talking about the digital

part of a physical object. think about the mars rover the rover that just landed had actually been designed, developed with the help of siemen's digital twin technology we can simulate how it performs. you saw how brilliantly it performed. this rover and prior rovers as well that same technology can come to manufacturers today to capture the digital twin of a product that they have contemplated. even if there's not demand for that product in the moment by capturing the digital twin, we assure ourselves that if there's ever a need to go to scale, to produce in mass, we can then distribute that digital twin, protecting the ip of the maker and produce at scale to meet the need of the nation >> yeah. which could have huge implications when you're talking about supply chain disruptions and companies pushing for more on shoring, near shoring of the supply chains as well.

barbara, we have to leave the conversation, but great to see you. >> wonderful to be with you. when we come back, more from our exclusive interview with the chairman of perdue pharma. and later etoro going public we'll speak with the ceo and betsy cohen. "squawk on the street" is right back 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. ♪ usaa ♪

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perdue pharma a company behind much of the opioid crisis in the country one of many. filing a chapter 11 plan of reorganization this morning related to disclosure statements for the southern district of new york the results of the plan that has been submitted would be basically a vast majority of 10 billion in proceeds would be used by states to abate the opioid crisis. and they can't be diverted these funds for other purposes nonetheless, there is still some potential opposition to this in the form of some state ags reference joint statement from many of them who simply say it's still not enough not enough from the family or enough in general. we're disappointed in the plan while it contains improvements over the plan perdue announced in '19, it falls short of the what survivors deserve it leaves the possibility that

creditors could still move against this potential settlement i did have a chance to sit down with the chairman of perdue steve miller and asked him why this is the deal they should take the reason that we are proceeding with the plan of record is a, we have the support of the majority of the creditor groups because they understand that is what will best create value rather than trying to do a fire sale of the assets at this moment in time nonetheless, the plan calls for reviews of that long-term -- the possibilities that the company might get sold, but in the near-term, this is the best way to create value to go to the victims of the opioid abuse problem. >> yeah. and the family's role here, originally and i remember when you and i spoke 18 months ago, i

guess, early on when you took over this not enviable task, they were at 3 billion originally they're now at i think 4 .5 billion 225 million is going to the doj. what do you say to those who say that's not enough? >> well, this has been a lengthy debate over the last 18 months and yes, the family moved from their initial $3 billion offer to what is now $4.5 billion, and the question is how much longer do you want to keep debating it or is now the time to take the money and use it for a valid purpose as opposed to continuing to have this legal battle? >> unfortunately, steve, as you well know, 2020 was a very bad year for opioid overdoses. i think some 80,000 people

broadly speaking but much of that from synthetic opioids. it continues to be a terrible, terrible problem for our country, doesn't it? >> yes, but whether or not there's oxycontin, the elicit heroin and fentanyl problem is now the headline problem for america to deal with going forward. our plan is to continue to provide opioid abatement answers and this $10 billion should go a long way to helping the public health want it to be different from the famous settlement with tobacco companies. only 3% of which they say actually went toward tobacco cessation and things of that nature >> yeah. we'll see how all of this goes david, you've been all over this and it comes, of course, in the midst of arkansas suing walgreens over the opioid crisis we can talk about the finger pointing, the lawsuit in the

midst of this other pandemic, the opioid pandemic. i was look agent the stat for arkansas specifically in 2019. second highest opioid dispensing of any state -- 80.9 prescriptions for every 100 persons. that's higher than the national average. here's the national average. 46.7 out of every 100 persons. let that number sink in for a second how many people are getting painkiller or have been getting painkiller prescriptions using other as he noted elicit drugs as well. we could talk about following the science in the pandemic. the other piece of the science in this pandemic is the fact that you have seen drug abuse, overdose, alcoholism, suicide rates all climbing as well with people being locked in and being curtailed socially so i have a feeling we're going to be talking about this a lot more for a long time to come >> yeah. as the pandemic thankfully recedes, we may be refocussed on this as i pointed out during the interview, i think it was 80,000 deaths to overdoses last year.

that includes a lot of different drugs but the main culprit is fentanyl heroin, things of that nature. they're still making oxycontin -- >> there's still a place for it. >> exactly there is, unfortunately, a lot of people suffer injuries where it is very helpful to be able to have this drug available the company under this plan would be put into a public trust where the proceeds from the sales continue to go toward the abatement efforts but again, that's something that seems to have at least aroused some opposition from some of the state ags. we'll continue to follow this story, an important one for the country, of course >> yeah. and as a side note, david, you mention tobacco use. an interesting note today citi essentially guessed smoking in general could go to zero in this country by 2050 as a side narrative, and they down grade mo as a result when we come back, a robinhood competitor going public in a $10

billion spac dl.ea we'll talk to the ceo in a moment

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welcome back it is now time for our etf

spotlight. looking at xlk up more than 80% from a year ago. a street high of 175 that stock more than doubling over the past 12 months. negative year to date. it's higher this morning the analyst behind the call will join the gang xtne hour on "squawk alley" we're going to take a quick break. it's game time, let's meet the defending champs. g. hargrave thomas, point guard. bryce matthias, forward. kim kietz, investor. oh, i invested in invesco qqq. a fund that invests in the innovations of the nasdaq-100. like next gen 3d rendering software. you don't have to be an advanced graphics architect to help realize a more vibrant future. become an agent of innovation with invesco qqq.

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welcome back here is your cnbc covid update at this hour moderna is starting a study where beans as young as six month get the covid vaccine. right now moderna is only authorized for adults. children are a quarter of the

population getting them vaccinated would help the country achieve herd immunity european drug regulators are convinced the -- they are strongly urging countries to keep vaccinations going. even as they investigate blood clots in a small number of people after vaccination france, germany, and italy have suspended the shot. after initially pausiiing astrazeneca vaccinations, thailand's prime minister got vaccinated in australia they say they will keep vaccinating. >> in any large vaccine rollout, we expect to see unusual events and we monitor very closely and carefully for those. but this does not mean that an event that happens after

vaccination has been given is, indeed, due to that vaccine. >> clearly a lot of questions remain david, back to you >> okay. thank you. betsy cohen back spac fin text, taking etoro public this morning. and you can see getting a positive reception from holders in fin tech acquisition corp. 5. joining us betsy cohen along with yoni assia. thank you for being with us. betsy, i want to start with you on the deal itself before we get to yoni and talking about the business model it wasn't that long ago that at least press reports had the company valued at 5 billion in a traditional public offering. why in such a short time did the value go from 5 to $10 billion >> i think it's the kind of growth that you -- viral growth that you see among companies of

this sort. this is a year in which etoro added 5 million new registrants to its list. topping 20 million altogether. it's a significant increase and shows the acceleration of growth and acceptance of the product in the marketplace. as you've seen with other companies like robinhood and stripe and some of the others, valuations can grow quickly, because the businesses are growing quickly. >> yeah. and yoni, you are growing quickly in your slide deck here i'm looking at 1.2 million funded accounts. about 605 million of rev gnaw loos year. give me projections here given that the projection based on your value is about 9.7 times 22 revenues what are you expecting in terms

of funded accounts and overall numbers? >> sure. so first of all, last year was an amazing year for us we grew 147% year over year revenues to over $600 million in revenues and we started 2021 with a perfect storm, both crypto rally, markets in all-time high and a significant increase in customer demand worldwide both for crypto commission free stocks and obviously for a unique patented technology of combining a social network together with the trading platform enabling our users to invest and to automatically copy top traders from around the world. we areprojecting to each over $1 billion revenues in 2021 and over $2.5 billion in revenues in

2025 and to see the growth of the number of funded accounts grow about 90 plus percent in 2021 versus 2020, and grow over five times by 2025. >> all right those are impressive potential numbers obviously. pointing to what is a very impressive valuation you offer a largely in europe and asia pacific that is by far the bulk of where your business is is there an opportunity for you to move into the americas or are you going to continueto focus on those geographical areas for your platform? >> we're moving into the americas we've launched our crypto trading platform in the u.s. in 2019 we've recently seen a triple digit growth rates, quarter over quarter in our u.s. business we've received approval for a broker -- free stock trading and

our social trading network across both crypto currencies and commission-free stock trading. and have very high expectations to see significant growth coming from the u.s. market as well in the next couple years. >> betsy, i was reading through the footnotes on page nine through the presentation i was wondering if you could help me with a couple things what are adjustment shares are those going to the pipe investors? what are they? >> they're going to management -- >> that's for betsy. sorry. go ahead, betsy. >> i'm sorry going to management and the existing shareholders, and they have to be achieved. there are certain goals, stock price goals to be achieved within the first 30 months and then 60 months they're aligning themselves with the new shareholders as well as

reaping the benefit of 14 years of effort and building of this company to bring it to market. >> and i noticed as well in the footnotes you forfeited 1.28 million spac span sor shares why? >> yoni is a tough negotiator. >> that's why. all right. >> yoni, i'm curious about payment for order throw. i realize you have a free platform for your customers. you don't do payment for order flow because it's not allowed in europe payment for order flow actually leads to better price discovery but we also realize it is very much in focus right now given everything going on with robinhood. how are you thinking about it as you expand to the market and is it an opportunity to take on customers that maybe are feeling disenfranchised at some of the other trading platforms here >> well, first of all, i've been

a fan of capital markets since i was a very young i started trading stocks when i was about 13, and we really started etoro with a vision of opening the global markets for everyone to trade and invest in a simple and transparent way market infrastructure works differently in different markets. there's a difference between where we're regulated in uk and europe and australia and the u.s. in the u.s. initially we do not plan to be a clearing broker so we will use existing market infrastructure in the u.s. we provide today for our users worldwide to access both u.s. markets but as well european markets and other global markets such as commodities and crypto currenci currencies i believe the opportunity here is really about a generational moment a generation all around the world is going to be the biggest

cohort of people and the richest cohort of people in the world over the next ten years. there's research showing that 20 % of global equities which is an opportunity in trillions is going to move to digital platforms, and we are certain we can capture market share both in the u.s. as we've done in europe and asia and the middle east >> and when you watched robinhood have to raise 3 billion, yoni, to -- well, some would say survive in the face of that unusual activity, to say the least, what were your thoughts about your platform >> i think we're very excited about the growth that we've been seeing in 2021 following a tremendous year in 2020 a part of us thinking about the next stage of growth of etoro is taking it through this transaction to become a publicly

traded company we do believe as we scale up the platform and add millions of users into the plat form, it's always good to make sure that you have the required funding to fuel your growth expectations. >> finally, betsy, i notice the pipe investors will not be subject to a lockup. why is that? >> i think that they're purchasing and committing to purchase ahead of time, and with a certain information, and they are long, many of them are long only shareholders and looking to support the growth that yoni just described over the next two to five years, and so their interest in selling is not prominent, but their ability to

sell within their particular structures is an important element to them. >> okay. betsy, always appreciate you joining us for your latest deal. yoni, thank you as well. >> thank you very much >> thank you in the meantime, watch nicol a under pressure as they file to raise about 100 million through a secondary. it's about a one-week low. they'll use the proceeds for general corp. purposes the s&p now just autbo 20 points away from 4,000. mom and dad left costa rica, 1971. and in 1990, they opened irazu. when the pandemic hit, pickup and delivery was still viable. and that kept us afloat. keeping our diners informed on google was so important. the support from our customers, it honestly kept us going. i will always be grateful for that.

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credit suisse is urging investors to get clever with reopening trades redi nio that on trangatn. mo "squawk on the street" ahead.

welcome back stocks are mixed so far this morning with energy and

financials pulling back as you can see behind me. on the up side, technology and services within technology specifically, most of the leaders are layers in the chipand semi conductor sector including names like micron, also applied materials and land research as well. those chip stocks were among the groups that came under the most pressure under the recent tech pullback the semi conductor smh is up 10% from the lows last week. big moves in technology stocks and specifically chips morgan, i'll send things back to you guys >> dom, thank you the f-35 is back in the kill zone. adam smith recently called it a rat hole after the air force's top general announced it raising questions over whether the service which does call f-35 the fighter fleet corner stone will ultimately buy the more than 1700 jets once envisioned.

it's said the joint strike fighter program has a near death experience with every presidency and with the projected cost of 1.7 trillion over the life cycle perhaps it's not surprising, but this time could be different an exploding deficit shifting defense priorities and a fighter that after years of cost overruns and performance hiccups is so high-tech now, so capable that some officials and experts argue you might not need as many what does that mean for lockheed martin and other suppliers well, head of aeronautics says lockheed martin is working to keep kusing costs. the -- cutting costs a 70 % from the first production contract on one. >> we've been able to reduce our cost and sustaining and maintaining the f-35 by 44% in the last four years alone. if we look forward in the next five years we see another 40% to

50% reduction in terms of our ability to reduce our cost even further. >> in the midst of this jawboning worth noting lockheed is negotiating a long-term contract about sustainability. a quarter of their revenue is f-35 so far it's delivered 625 jets globally there are another 235 in production in fort worth, the main facility. when i was there in fort worth broadcasting live four years ago 141 arvegt were in various stages of assembly the question, guys now isn't whether f-35 goes away or whether it's been deemed a failure as some media reports f have said, it's whether the dod buys all the jets and how quickly. seven partner countries, six more allies all buyers, they say

based on the backlog they see, based on the interest including the international interest, he doesn't, quote, really see a threat to the quantity of the production system. but i have a feeling we're going to keep talking about this, because, carl, in addition to being a weapons system, f-35 is also very much a jobs program. more than 250,000 jobs here in the u.s. both direct and indirect are supported by this program. >> it also ties into the ongoing discussion about interest rates in general, morgan, and the degree to which the government's debt service costs it goes up marginally at this point. you're talking multiples of the defense budget for an entire year so we'll see in the coming years whether that comes under pressure >> absolutely. and given the fact that the shifting priorities at the defense department, modernization of the nuclear tried a, there's key priorities.

the defense stocks we've seen last year sell off dramatically in part because there's this expectation that with this new administration with a democratically led congress, not only can we see a flat lining in coming years but even steeper cuts so far some of the different ceos i've spoken to say they don't expect that, but this gets to that bigger, broader debate and one that has been affecting investors. all right. fascinating look at defense always important to keep an eye on as is retail much of the xrt today is in the red. names like dick's, lands end, gap. the fund's top holding is gamestop as you can see, below 200. got to 174 earlier on. stocks down 15 % today more "squawk on the street" in a moment

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note entitled "the restaurant post-covid setup handback. welcome back. >> great to see you, carl. thank you. >> sounds like you're overall take is that consensus estimates for comps especially casual dining, too low. question is how low. right? >> that's right. when it comes to casual dining, stocks have come a long bay. it's interesting that street numbers really haven't come up as much. when you think about the combination of factors out there, the gdp growth that's happening and hyman and team here at emcorp. think nominal growth are 15% thversus 2019. who's to say we might not get way past especially when a lot of chains added off-premise business and

competitors closing stores lately we need to see the upside for stocks to work a big valuation time for casual dining. >> favorites in dri and in brinker as well, i think talk about why those two are special and then in quick service, i wonder how much of that off-premise do they actually keep once we get to at least closer back to normal? >> when it comes to, you know, to pick on two names out there with big off-premise sales layers added, chipotle and ch chch chili's. 50% now. see where it settles out looking at at-year sales, to say they might be 15% above 2019

levels, nod t hard to get there. similarly chipotle a lot of business through digital and most loyalty members per restaurant in our coverage when it comes to fast-food, though, the funny thing is, global multi-national names. franchises -- those stocks haven't worked very much to some degree you wonder when they will get in the game. obviously, vaccines slower to rollout overseas perhaps the best stock upside names like mcdonald. >> we've seen millions in the restaurant industry laid off in the past year. in the midst of faster, perhaps, adoption of some o digital technologies, how many will have jobs and broader job you mentioned mcdonald's or others, what does it mean for stocks themselves, bottom line? >> well, the restaurant you point out, a good point. restaurants are going after tech

right now and wake up having 9% of sales, 90% in drive-throughs, 90% of sales going through that drive-through. everybody thinking do i have my mobile order set up? ultimately with $15 wages down the road, people are thinking about efficiency they won't certainly want to keep their franchise, they want to keep franchisee whole as possible no clear job loss that will happen from digital, rather productivity and driving speed checks investive selling, all sorts of stuff. further down the road, much further, could have bodies needed at restaurant not the focus now. everybody trying to get people through that drive-through more quickly, for example. >> hard to remember before covid hit, seemed every other day some headline about menu innovation

or new menu items. each player trying to outdo the other. i would assume you think we'll get back to that environment as they start competing for this fresh wave of dollars? >> in the fast-food side, the barbell again. you can feel all the chicken sandwich news, all premium news happening now. you saw the quesadillas from chipotle and all the chicken sandwich boards happening right now. basically, that's going to be great for one side of the equation, but you're also going to need value. a lot of people have been left behind so far in this recovery so for that 20%, 25% of the fast-food user that needs value, that's going to be around. right now you're going to see companies, the big chains. they're going to have to feature value at one end to go along with premium chicken sandwiches on the other end. >> hmm fascinating. definitely in for an interesting new chapter and it's a great note as people try to get their

playbooks in order david, thanks, as always great seeing you dave palmer. check out the gainers. average bounces back moderna up more than 6%. micron, applied materials, land research, semis a bounce today and box up about 3% now. "squawk alley" starts on the other side of this break. ! they were following her because she had beef jerky in her pocket. (laughing) (trumpet playing) someone behind me, come on. pick that up, pick that up, right there, right there. as long as you keep making the internet an amazing place to be, we'll keep bringing you a faster, more secure, and more amazing internet. xfinity. the future of awesome.

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