retailers benefits from stay at home. two stocks surging in the pre-market it is thursday, march 18th, 2021 "squawk box" starts now. ♪ i need home, home cooking ♪ good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick. the dow was up 180 points. it closed above 33,000 for the first time ever. the s&p and nasdaq notched modest gains this is all about what the fed had to say game on. look at the equity futures this morning. green arrows for the dow

futures. indicated up 28 points s&p futures down 19. nasdaq off by 160. as joe mentioned, it was the fed speak that everybody was watching with the fed saying they will keep watching this and keep buying things for now keep from raising rates through 2023 look at the treasury market. the 10-year is yielding 1.7% let's look at the "squawk stack. this is the one every day. what goes in and what goes out the 10-year. dow futures, nasdaq futures and b bitcoin and gamestop any indication >> we are alternating gamestop and amc. i checked as a reader. it is up 4.5% now. amc, gamestop. news on that dow over 33,000. we need that the nasdaq yesterday had a horrible early session

we were talking about it and during the session it was down 200 points and then it responded to the powell comments along with everything else and turned positive it is giving it back this morning. remember on the lows we were down in the low 2,000. >> yield >> the yield >> the yield >> yeah. bitcoin. >> yield on the 10-year picking up >> bitcoin was down 54,000 it is correlated the minute they say we stay free and easy -- that's a dirks b bentley song free and easy down the road. bitcoin. we have the ability to go doop-doop. we could add a sixth name.

we don't want to add too many. then it becomes a stocks to watch. we will do it like that. is that okay, andrew are you all right? you are not saying anything. >> i'm good. you know, i don't know if we have another stock to put in it. i'm good with it for now. >> time will tell. >> for now we have three hours. >> the news business. >> we can flip it around at 7:00 s>> i haven't thought about thi year. >> i know how much you hate taxes, joe >> i hate doing my taxes >> you know? >> i pay a lot for somebody who hates them go ahead beck >> let andrew get the news i have something to say after. >> the irs is postponing the tax filing deadline this year. pushing it back from april 15th

to may 17th. the irs commissioner said many people are having a tough time and the agency wants to help taxpayers navigate the unusual circumstances related to the pandemic one warning. taxpayers should check to see if the due date for your state taxes have been changed. not all states follow the same filing deadline as the federal government it may well be a situation where you file federally, but file on the regular date in your own state. go to the state web site and find out it's important b becks. >> that is what i wanted to point out. if the state deadline is april 15th forget it. you might as well do both at the same time. for me it is a matter of getting the documentation together and compile it if you do one, you may as well do both. >> it is a homework assignment that is the place i procrastinate. thank god i didn't use bitcoin

doing my pedicure. now you know you incur a capital gains. luckily, i didn't do that. some people have done that are they really going to go back -- people that got in early and decided i'll use bitcoin to pay for things -- are they really going to go back and figure out every capital gain? >> don't you think if you are -- first of all, if you are using bitcoin to buy a $69 million beeple piece of art, the irs will come find you because bitcoin is as valuable as it is, every purchase, unless you use small parts, are bicg. the irs will find you. >> you can use it to buy a pizza. do i owe capital gains on the pizza? >> you would >> it went from getting a slice

to where i could get about ten large pizzas. >> so few bitcoins are used as currency i'm actually not worried about this particular compocomponent. >> for a while i saw signs in a lot of places around new jersey. it is fun to say we accept bitcoin for a little while the nail place that accepted it is now a nail chain. they accepted enough to where they spread out. not really anything they took in. like the nfl player. former nfl player. he took half his salary and half of his salary ended up being more than the salary we will see if that continues. >> in the meantime -- >> morgan stanley yesterday. >> i saw morgan stanley. one note on the morgan stanley news the headlines was morgan stanley effect toughly selling bitcoin

they are not really interacting with bitcoin itself. what they are doing is selling their clients. galaxy digital funds you get exposure to bitcoin through other funds. not be getting direct exposure for what it's worth. one other note on the tax front for you filing taxes estimates s taxes and file quarterly. check the web site that may be different this year as well. a lot of different viewers with a lot of different financial situations an update on stimulus payments u.s. treasury issued 90 million stimulus checks worth $242 billion as part of the covid relief package the first batch of payments were

sent direct deposit. those started landing in accounts this past week. now you to the topic that joe wanted to add, to the "squawk stack. amc. >> it is moving a little it is big news we like going to movies. not just at home an update on reopening of theaters in america might be the fake butter on the popcorn amc will have 98% of the theaters open by tomorrow. 99% by march 26th. california is the last state to reo reopen all 23 in los angeles county will be operational by tomorrow. seems early to be -- high ceilings ventilation maybe. >> ventilation is important. >> everything we do, we will think about it, as we stick our

toe back in the water. if you are so inclined to see a movie on a big screen and the popcorn, you will be able to progress >> it's not just that. it's also disney saying that two california theme parks reopening as well. that will happen on april 30th the ceo told cnbc that disneyland and california adventure will open at 15% capacity to start. >> we have been operating at walt disney world for nine months there certainly is no shortage of demand. i think as people become vaccinated, they become more confident in the fact they can travel and stay covid free that is showing up in our intent to visit our parks >> he also said that disney hopes to reopen the cruise line for business by the fall guys, think of that. 15% capacity that is difficult to try to turn

any profit they must be operating on a loss to get things back up and running, i assume. >> yes no fast track. you don't need a fast track. >> that would be amazing you could fly right through. >> this is good. this is good what a tough business to be in remember disney? disney with all of the things written before the pandemic. they got it all. suddenly half of it was why do we have this this was a tough year. tough year when you are trying to operate obviously, pretty obvious and tough. good to see it happening when do we get to 30 or 40 or 50 or 60% ever? do we ever get back to the crowds you used to see i don't know a lot of mess. >> probably. i would say esse eventually you back to those. i like to see what they are

operating in orlando those have been open as well as universal. i don't know the capacity availa availability i know for spring break, they were filled up to whatever level. they sold out of the park. >> right >> that's good >> i'll find out. >> there is demand >> we'll find out. when we come back, the futures are pointing to a decline for the tech stocks at the open nasdaq under ressure we will talk about the dif divergance and on the guest list, anthony scaramucci and the owner he of ulta beauty. mary dillon. "squawk box" will be right back.

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welcome back the fed bolstered markets ramping up expectations for rapid growth and indicating no interest rate hikes through 2023 the dow closed above 33,000 on the first time on this news. the tech stocks actually closing the day with the gain. joining us to talk about tech is

gene muenster with luke ventures and tiffany. she is a cnbc contributor. tiffany, let's start with you. the fed is acknowledging there are two economies. companies doing really well. better than before the pandemic, but there are other companies that really are in a recession state. that trickles through to all of the employees of those sectors what do you think now if the fed is going to say forget about this we are not raising rates for a long time to come. >> absolutely. good morning, becky. the fed is right this is a "k" shaped recovery. it is not trickling down to the employees, but also trickling through the economy. i think we need to consider that "k" shaped recovery may be permanent. some industries will be changed over a longer period of time

some forever you look at commercial real estate work, education, health, ecommerce. at our firm, we are thinking about how we are positioning portfolios going forward when the dust settles out of the event-driven recession with what we call an expiration date clearly. when the dust settles, we believe we will be in a different environment from pre-p pre-pandemic we look at the new world and we create the categories of companies that we think will do really well. tech and tech adjacent and tech enablers the question for us is what would you do if you didn't have to go into an office you would work anywhere? could you use airbnb and work anywhere if you didn't have to go to the grocery store or the mall?

farfetch and wayfair and ulta will do well and other platforms. shopify. could you run a medical practice virtually? telehealth platforms and even amazon is getting into the health care industry now all of these things are incredibly important another one, too, you know, starbucks and chipotle are really, you know, really positioned to take market share from some of the smaller companies that have not done well during the pandemic and not going to come back again >> gene, i think you look at the market and think that these tech stocks are no longer going to rise because of the growth alternative. there will be winners and losers how do you sort out of the weak? >> what tiffany was saying on the transformative themes, that

is the wheat from the chaft. the market is telling us two store lines. if you look at the faang, that is moving in tandem. you draw the hard line like tesla and zoom and peloton and s zillow tiffany referred to them as the dust settles those stocks have been all over the board. they were up big time 50%. down 15% a couple weeks ago. up 12% they have been all over the board. major interest rate sensitivity. becky, our view is this. we are not out of any sort -- we will be in the zone with anxiety around interest rates despite what the fed says. the bond market will make up its mind the transformative companies are going to be the most susceptible

to changes what we view is step back from the noise. recognize there will be massive shifts and really anchor your position in three or four core holdings we think you can sleep well at night knowing the world is going there to give you examples apple benefitting with the digital transformation zillow, a company our firm owns. those are examples of companies you can sleep well at night owning >> gene, do you not believe the fed? you said the fed can say this, but the market will make up its own mind you think the rates are going up anyway >> i think so. i'm far from an economist. i tried to embrace that side of me the past few weeks. spoken to people at large banks and economists alike my sense is that the bond market has its own mind despite reassurances from the fed and strong hand, i think

investors should expect these rates to inch higher the question for me is not about rates inching higher, although that will be negative for the transformative tech companies, but the question is the pace of the rate increase. that's going to be the piece that will have the biggest fluct fluctuation. i don't know how fast the rates will move up i do believe the market is in an impressive discounting feature and looking out to 2023. i anchor in the very simple philosophy take yourself out of the month-to-month trading own core holdings. recognize the rate will do what it will do the world is moving in a new place and you need to position yourself for that new world. >> tiffany, you mentioned ulta as a stock you own we have mary dillon later this morning. the ceo who just announced she will step down the stock has ben en incredible

under her tenure what do you think as a stockholder? >> so, i would hope that the team at ulta is strong and prepping for mary's transition one of the things we really like about ulta is they were able -- we put ulta in the tech adjacent category i don't know where you buy your makeup, becky, but for me it is ulta or sephora. ulta has been doing the quick pivot from in-store sales to their ecommerce are business we love what they have been able to do. it was almost seamless i really have belief the team at ulta is really prepping for mary's transition. we hope that goes well

we expect nothing but good things >> i like tiffany's theme of tech adjacent. gene, these are stealth tech stocks ford is one you mentioned there. >> exactly this is one i believe, like you said, a stealth tech company the competition is really not materializes for tesla a lot of anxiety among the tesla leaders. ford is one that could be a come competitor the mach-e it is close to the $50,000 price tag. be prepared. this is a good old fashioned rodeo with tesla and ford. f-150 electric truck best selling vehicle in america is going electric next year. you will hear more about the mach-e and ford 150.

these companies you think are kind of forgotten can start to play in the massive themes in this case, ev >> gene and tiffany. thank you. >> thank you >> thanks, becky all right. i was listening closely about the makeup stuff sorkin, i know you have, too you never really bought your own, andrew? it gets supplied to us >> i get some. >> i identify a little with that i don't just ignore it and say it doesn't apply to me i admit that i don't know good from bad or what colors i like or anything like that. sorkin you don't? >> mac c-6 that's my color. i don't know much. that's what i know i've learned over the years.

>> and now, because our people don't do it for us anymore we all do it our own >> my wife says i know more about makeup than she does at this point >> when i get everything out and i look down at it, i say oh, my gosh 12 things. brushes and this and that. i go through this procedure. i'm pretty good at it now. i think some people say i wear too much. coming up, this is all tmi coming up, two retail stocks getting a boost thanks to pandemic inspired shopping trends details straight ahead at we head to a break, a quick check of gamestop. worth watching again it is a quiet session up only 3.5%ment later this hour, we will talk to a person who testified in the congressional hearing on the gamestop trading frenzy "squawk box" coming right back

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i've got something to say here i'm sorry. you may know what i'm talking about, guys. time for the "executive edge." williams-sonoma. s consumers bought more furniture and cookware earnings beat estimates by 56 cents. a pizza stone. pizza stone brought home a couple days ago from williams-sonoma. with that thing that goes in that you see people in the pizza place use.

it goes under. put the pizza stone in you do this at 500 degrees the oven the stone heats up it is not crappy homemade pizza that isn't any good. the pizza place will sell you dough at a pizza place you can make as good a pizza as a brick oven at home i've done it twice in four days. it's a problem do you have one of those, sorkin do you have one yet? >> i live in new york city where we have the greatest pizza in the world and have the pizza delivered in five minutes. >> i know. i understand that. >> i don't have the stone. >> i understand that becky. i'm telling you, get one >> i have one of the pizza scraper things now >> put some flour -- >> and the pizza cutter. the round cutter. >> a learning experience get that flat. you think you need to build up

the edges. you get crust. it rises so much put flour on the stone otherwise you will never get it off the stone. >> thank you, chef joe >> that's supposed to be a 30-second segment. discount retailer five below heading higher holiday quarterly results beat estimates. snuck up 18% year to date. i would have sworn you would have one, sorkin you have the little hibatchi electric grill out on the balcony. the fire hazard for the building. >> we're an indoor we don't have your outdoor space. my outdoor space is called central park >> this is how you cook. you order in, right? uber eats changed your life, probably >> can i just say, by the way, for you new yorkers who know

what i'm talking about the greatest chinese in all of new york closed down through the pandemic people thought it was never coming back. they just came back and we just ordered there to celebrate for you who know the restaurant. it is the most famous chinese restaurant in new york city. they're back in business, baby >> they delivered? >> they delivered. it was a big, big day in the sorkin household when we come back on the other site of the break, we will talk about another return. this is the return to work companies scrambling to put plans in place to bring back workers to the office or extend working from home policies or go to a hybrid model. we will talk about the new normal and the debates happening inside office places right now >> announcer: executive edge is sponsored by at&t business our people and network will keep you connected. let's take care of business.

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♪ i believe the world ♪ ♪ is burning to the ground ♪ welcome back to "squawk box. one of the topics of

conversations is when and where the p companies will return to work we have the global public a affairs to the cdc with us one of the world's largest communications with more than 3,200 employees in 70 cities around the world good morning to you. there is a big debate about what this is all supposed to look like whether people will require vaccinations or whether they will have testing programs masking, not masking hybrid model not hybrid model what are you planning on, pam? >> we are still working on that like most companies are right now. we will be following cdc guidelines and public health guid guidelines it is compliccomplicated. we are in many markets around the world. it is not easy we will look at local

jurisdictions and listening to employees and having a model for what they need. >> pam, let's stay in the united states and go through a couple of issues. we are trying to figure out the right answers. first, require the vaccination or not >> i would say very few companies we're talking to are going to be requiring as a mandate. the vast majority are looking at other kinds of models in which they are encouraging the vaccine or understand what that will look like. the interesting thing is most employees have said they want to snow people are vaccinated when they get back to the workplace yet, the vast majority of companies are not planning to do that >> what do you make of that? on the other end, if you are not going to require vaccination, are you going to run and i have not heard -- i heard about companies thinking about it, but not anybody commit to it -- run a massive effectively

surveillance testing program on behalf of the employees. meaning, if you are not requiring the vaccination, you should be doing a fabulous testing program and maybe you should do both anyway. >> we are starting to hear companies looking into that. it actually is early i think most companies are looking at probably more of a fall or later in the year. maybe 2021 opening if the companies are not mandating vaccines, they need to communicate around what they are doing to keep theworkplace saf and give people reassurance and have a more agile style for working remotely what we learned is people are effective of remote working. a lot of employees are itching to get back to the workplace to collaborate and connect. >> pam, here is the great conundrum as i see it. a lot of ceos and leaders who want two things at the same time

inn c incongruous. they want people back in the office i know very few people at the top of the companies that don't want people to go back to the office two, they would love to get rid of the real estate footprint with the exception of google they are talking about wanting people back in the office for culture purposes, but they can't really have everybody back in the office on the same days. how do you actually set up that hybrid model so people can experience that culture if they can't all be there together? >> i think the hybrid model is going to be the model going forward. not just a temporary thing we do until we reach herd immunity we are just hearing from employees that is what they want they love the idea of not having to get into the car or get on a

bus or train every single day of the week and have some time at home where they can walk their dog at lunchtime so i think having some kind of combination is going to be important. i think most businesses -- >> pam, how flexible are we talking? to make the quote/unquote make the hybrid model work and capture the culture environment work with everybody there in person you can't say show up three times a week whatever day you want i imagine you have to say you are coming in on tuesday and thursday others are on monday and wednesday and friday and we reverse that the next week over time, it is complicated as you have employees traveling to the point where it is hard to know you will capture the whole group on certain days together >> there are a lot of technologies developed to help companies do this. it is not one receptionist

figuring out who is sitting where. i think moving to a model where people have flexibility where they sit is the norm and having systems in which people can log in and show where they will be and what they will be doing on any given day and if they are traveling will allow us to do this stuff it will look different i think we will have the technology to support that >> one last question tracking you just mentioned something interesting. you will tell people where you are at all times there are companies, including bloomberg tracks people at all times. there are some people who think that is creepy there are people who have a view of being on top of people like that, especially in the office workplace, is a little bit almost too much. how do you think employees are going to relate to that in the future >> i think employees will want to know they're safe and working in a safe workplace.

if it gets too creepy, it is an issue. i think every company will have to listen. they have to be empathetic and transparent about what they are doing. employees want to know they are coming back and it's safe. so, i think, anything that a company can do to communicate that and put things in place that don't create too much discomfort, but also give people a sense of confidence of coming back and it will be okay. >> okay. pam, it's great to see you hope to do this in person when the world gets back in order and we have a hybrid workplace going on thanks >> thank you >> becky thanks, andrew when we come back, we have stocks to watch. why apple, boeing and lordstown motors are on the watch list that is coming up after the break. don't miss the interview with mary dillon after news she is stepping down from ulta in june. we'll be right back.

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welcome back shares of lordstown motors under

pressure this morning after the electric truckmaker said it received a request for information from the s.e.c. and it is cooperating with regulators the company as you know is the focus of short seller campaign by hindenberg. the company reported a loss of 23 cents a share in the fourth quarter. that missed the estimate the stock is down 4.1% we will talk to the company ceo of earnings and the accusations coming up at 8:15 a.m. also, apple could be releasing new high-end ipads in april. according to the bloomberg report that states it could have improved features and faster processor and mini l.e.d. display. that stock as many nasdaq stocks down by .90%

joe. thanks, becky. the faa is taking tighter control over the inspection of the boeing 787 special of the e itself the move comes after the production issues relating to the fuselage seams last september. 787 dreamliner not one we normally talk about look at the stock. coming up, we talk to one of the witnesses from the gamestop hearing on capitol hill about retail investing and gameification. that has to be in the oed word of the year. gameification of markets and much more when we return too sm. too smooth? watch this. ♪♪ you try it. ♪♪

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lawmakers gathering, financial professionals to weigh in on the gamestop trading frenzy our next against is one of the witnesses. she works at americans for financial reform alexis writes about the financial markets in her newsletter "markets weekly." alexis, you've got kind of an interesting take here. it's not david versus goliath. in this case you make the point it's really goliath versus goliath. do you see any benefit in terms of bringing the -- wall street to a wider audience and democratizing the financial markets? that isn't what happened here? it's more sort of a rigged game for the professionals is what we're watching >> i do think that the largest wall street players have these

very deep structural advantages. i say that as somebody who used to work there. i absolutely think there are some retail traders who made a lot of money through this whole gamestop stock and i would not dispute that there are people who bought at the top and who lost money that they couldn't afford to lose i think it's a little bit of a mixed bag. financial literacy is a good goal last year's stimulus, this year's stimulus is a much better antipoverty program. trying your risk at markets is a bit risky. >> that goes against the idea if you give someone, if you give them a fish, teach them how to fish, then they can catch their own fish it goes against that giving out stimulus money, what are we going to do, ubi, basic income it would help if people knew how to plan for their retirement

you make the point, order flow, being paid for order flow, you would actually possibly prohibit that from happening and you suggest that anyone who tries to save for retirement has to give wall street a cut, has to give -- and you want a public option for people to try to plan for retirement what does that even mean, alexis >> right now if you want to save for retirement there are only two ways you can do it without having a wall street middleman you can invest in a savings bond with the government which doesn't give you a big return. there's the reconstruction finance corporation which invested in a lot of public projects there's an interesting proposal called the national public proposal that says private markets are bad at funding things that last more than a

lifetime to show a return on their investment and moon shot projects that take a long time the idea behind the proposal is you would have a public fund that would invest in roads, infrastructure, going to mars, beyond mars and things that would take a long time and that would also give people a way to invest in public projects instead of having to give wall street a cut every time they put money in their 401k or participate in the financial markets. >> some of this if you're not doing a gamestop trade, if you're doing more conventional investing where let's say 5 years ago, 10 years ago your 401 k or whatever you're using you were investing long term into the s&p or s&p stocks. on the transaction costs you're talking about are literally fractions of a penny or pennies per share and over five or ten years there's nothing that grows at 7% a year other than wall

street or stocks so it just seems like you're talking about -- i don't even know if the fees you're talking about, wall street's cut, is even material to someone that's trying to save for retirement and if they had the financial knowledge, training, wherewithal to be able to evaluate graham and dodd types of situations and growth, that's a bad thing i can't imagine -- i wouldn't want to turn my money over to the government for them to help grow it for retirement because i'm going to get back less than i put in. >> i think everyone luikes choice i call it a public option for wall street. i think the issue here is not that people don't want to invest in the private markets and not that if you buy and hold is a bad strategy, the issue is 47%

of the country has no access to the stock markets has no 401 k because they are living paycheck to paycheck. i do think there are policy decisions that have led to people living on the edges and we should work to boost them up. i think the stimulus payments have been a life saving thing. they might be facing eviction who are living paycheck to paycheck who don't have $300 to cover an emergency it's a both and, not either/or approach that i'm advocating. >> the pandemic has exacerbated that 47% number. mitt romney mentioned that and then the rest was history, 47%. >> right. >> that existed before the pandemic now we're getting into myriad of government programs and government flaws that delivered us into that unfortunate situation.

alexis, we'll -- i mean, we need to talk for weeks but we've got to go. >> well, we can agree to disagree on this one, joe. >> we agree on that, that we need to do something, but i don't know if it has to do with getting rid of transaction fees saving 47% appreciate your time. >> thanks for having me. thanks, joe. two big hours ahead right here on "squawk." michigan senator debby stabenow. and sky bridge capitol founder anthony scareamucci we'll see what he has to say after this.

welcome back, everybody. the federal reserve says accommodation is still its fiscal policy and higher inflation ahead. that announcement fueling a rally across wall street the dow crossing 33,000 for the first time much more on the markets is coming up. the chip shortage. putting pressure on jobs in the

semiconductor and manufacturing industries senator debby stabenow introducing legislation to ease the pain. stocks, sky bridge capital's anthony scaramucci is our special guest. the second hour of "squawk box" begins right now good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. 2 1/2 hours before the market is set to open. looks like the dow would open up 56 points higher the s&p 500 looking to open down by 15 points the nasdaq looking to open off as well, about 149 points off. meantime, federal reserve triggering an afternoon rally on wall street looking past

inflation fears and keeping rates unchanged. steve liesman joins us with the latest steve? >> reporter: andrew, good morning. the economic facts change but the fed in the march meeting did not change its policy. with a new 1.9 trlds stimulus business passed, vaccinations increasing, states reopening the fed stayed until 2023 and no change in their 1$120 billion. >> we said we would continue asset purchases at this pace until we see actual further progress, that's actual progress not forecast progress. that's different from our past approach. the fed stuck to this policy even though it sharply boosted its outlook for growth and inflation this year. the fed sees inflation at or above 2% target through 2023

j. powell sees it. the fomc significant nant an even more dovish stance than we expected as the median interest rate projections show no rate hike through 2023 despite the unemployment expecting to fall there was some change in the fed outlook. we're going to do the dot plot here each dot represents the projected fund rate by one of the 18 committee members five saw 2023 rate hikes fast forward to today. the new projections show four officials now see 2022 hikes 7 see them coming in 2023. the median though still for zero hikes. powell also declined to say if the fed would step in to tamp down bond yields at current levels wouldn't speculate about what would pump fed action. he wouldn't rule it out saying, quote, the tools we have are the tools we have. that statement, andrew, i don't

know, maybe it was a green light for bond yields to rise. >> is anybody going to remember anything except the line about him with the punch bowl and what's going to happen there is there anything else to remember >> reporter: well, i mean, i think that's a big part of it, andrew i do know that people were listening to his answer to my question yesterday about whether or not he would step into the 10-year note, a lot of analysis about whether -- what he meant to say, why he said what he said he went to a piece of paper and seemed to read from it like he was expecting that question, but the answer was kind of a head skacher as to why he wouldn't take it on a little bit more directly very, very neutral about it. a bigger story is you're up 10 basis points where from powell ended his press conference look, he doubled down. i thought yesterday was going to

be tricky and he seems to say i'm sticking to my guns on this. there's 10 million unemployed and they're going to keep wide open until there's substantial further progress in putting those folks back to work. >> steve liesman, thank you for the analysis and putting those questions to him talk to you soon joe? thanks, andrew news alert on xpo logistics. frank holland has it. >> reporter: xpo announced the name of the spinoff. it's going to be called gxo. the company already filed confidentially with the sec. gxo stands for game changing opportunity. it will spin off the second large eggs logistics company in q4 they generated $1.76 billion for xpo. it's fueled partly by the pandemic and more people shopping online. gxo will include nestle, boeing and verizon.

cnbc getting a first new look at the logo and inside look at the business from malcolm wilson he said robotics will be a key tool as they expand beyond ecommerce and retail we're heavily working with high tech customers in the telecon sector and large amount of food and beverage business. automation, robotics, these are the things that allow us to progress product through our warehouse in a very short lead time very quickly. logistics speed is important last quarter xpo said the use of robotics increased five fold from 2020 from 2019. shares increased 17% since the announce of the spinoff almost doubling the market. >> frank, don't need to look any further than the journal supply woes slam the global market logistics is where it's going to be at. if you can't get the stuff, it's hard to move things along. but that's interesting appreciate that, frank.

>> thank you >> okay. becky. thanks, joe. when we come back, despite the pandemic, google is moving to open more offices around the country. we have the details on that right after this break. later, a new bill related to jobs in the semiconductor industry senator debby stabenow will join us on the details. the chip sector this morning it's been a big problem for the auto companies they can't get enough of the chips. as a result they have had to shut down production most of the chips are lower. advanced micro is down by almost 1% "squawk box" will be right back.

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♪ ♪ welcome back to "squawk box" this morning there's i think our producer walking into the building right there. that's him he doesn't know that we've got eyes on him. we've got eyes on him this morning. meantime, here's what's making headlines at this hour google has announced plans to invest more than $7 billion to expand offices and data centers

around the country the company plans to increase jobs and 1 billion of that investment will be in california meantime, the internal revenue service extending the tax filing deadline for the second straight year this year's deadline has been pushed back to may 17th. the irs urging people to file as soon as possible a note for our viewers, check your state tax deadlines as well because they may very well be different and for those of you who filed estimated taxes, i know that there's a lot of our audience among the wealthiest in america who file estimated taxes, the deadline has not changed. it remains april 15th so watch for that meanwhile, one of the morning's big stock winner is williams-sonoma. beating estimates on the top and bottom lines profit and sales got a boost from the pandemic with more people staying at home joe? >> thanks. i'm talking to a celebrity right

here max had no idea. yeah, you were right, andrew. >> the producer. >> the afore mentioned -- the big cheese coming back did you see, that's -- that's -- this doesn't just materialize. >> the big cheese was getting you coffee >> he's good to me i was involved in that story i was involved with that story >> the big cheese gets you coffee >> any reason to play this song works. >> that's why we play this song. he never looks in. i wave i go look at the monitor he never -- he's thinking about the show semiconductor. >> and getting you coffee. >> semiconductor shortage hurting jobs and manufacturing we're going to speak to senator debby stabenow anthony scaramucci will join us to talk about potential tax hikes of president biden the spac craze, bitcoin and much

more "squawk box" will be right back. time now for today's aflac trivia question. before 2020, when was the last time vinyl records outsold cds the answer when cnbc "squawk box" continues e aflac post-pain! aflac! what a day of upsets. jill's certainly upset with that unexpected bill from her back surgery. aflac! let's see that one more time. (beep sound) oooh, right in the wallet! ouch! aflac! aflac would have paid jill cash directly to help with expenses health insurance doesn't cover. hold on, i think she's trying to give us a side-eye... because she can't turn her head! get help with expenses health insurance doesn't cover. aflac! official partner of march madness. i had saved up some money and then found the home of my dreams. but my home of my dreams needed some work sofi was the first lender that even offered a personal loan. i didn't even know that was an option. the personal loan let us renovate

our single family house into a multi-unit home. and i get to live in this beautiful house with this beautiful kitchen and it's all thanks to sofi. mom and dad left costa rica, 1971. and i get to live in this 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.

♪ ♪ now the answer to today's aflac trivia question. before 2020, when was the last time vinyl records outsold cds the answer, 1986 according to the record industry association, vinyl record sales were up nearly 30% in 2020 to $619 million >> 1986 is also the year that this song, "bang your head" was released learn something every day. all right. the growing concern over a global semiconductor shortage

has gotten debby stabenow to jump into action with the new act. she serves on the finance committee. senator, welcome thanks for being with us this morning. >> good to be back with you this morning. by the way, i remember 1986 and those vinyl records. >> i was just saying -- me too my first cd was bon jovi. takes me back, too senator, let's talk about the problem first because this is a big issue that's facing car manufacturers right now. some of them have had to shut down production because they can't get their hands on enough of these semiconductors. that's a big issue what do you think we need to do about that >> well, first of all, this show is why we need a domestic supply chain as it relates to advanced manufacturing. we saw the same thing during covid with our not having a medical supply chain that was

able to handle the needs that we have and the dependency on overseas and what that meant for us in this particular case, during covid the predominant company, one company in taiwan that makes majority of these semiconductor chips decided that they assumed the auto industry was going to have a slump because of covid and they changed production to consumer electronics good news for us is we didn't see sales dramatically fall, but what happened is they now don't have access to these parts, these chips. and it's also true in other great companies in michigan like whirlpool that's making smart appliances and so on what we need to do is make sure that we are making those component parts in the united states because that's about jobs as well. what i've done is worked with my colleague, senator manchin, senator baynes, this is

bipartisan, to resurrect something we actually did over ten years ago, the 48c in the tax code 30% tax credit for building or retooling plants for clean energy technologies. it had limited time span over ten years ago. during that time period we dramatically increased wintering component parts and gm and ford used it to retool electric car plants and it worked, but it stopped. it's not funded. so we want to make it more robust we want to reform it we know this is a tax policy that can make a difference it's widely supported by our manufacturers and others and we need to make it very clear we want these component parts in the united states so we're not facing layoffs in michigan, just down the road from my house in lansing folks got laid off because of our dependence on a

semiconducting component part in another country. >> you know, i'm all in favor of american manufacturing and incentives to try to boost that. it makes a lot of sense, especially in some areas where these jobs have gone away, but when it comes to this particular issue you, the semiconductors, the auto manufacturers themselves are partly to blame they canceled a lot of the orders that they had going to the chip companies because they didn't think the demand would come back as quickly as it would or would be as strong as it was. i mean, in some cases you can almost say the manufacturers are at fault for having the just in time inventory that they kind of built up over years. it's not just the auto manufacturers that are doing this, but any company relying on this got caught in the supply chain when you can't have things moving as quickly as we have in the past, right? >> i think it's fair to say in this just in time environment that there were calculations made, for sure no question about it but the capacity to right size it, to turn it around has been

complicated because we're not making those component parts here in the united states. i met with an ambassador of taiwan the biden administration's weighed in in conversations to encourage that they be refocusing so that we can get back online with these semiconducting parts, but it makes it much more difficult when it's not something that is happening in the united states most of our jobs in manufacturing now are in the supply chain they're in parts, whether it be automobiles, whether it be other things we need to be making as many of those in the united states as possible, and it's not impossible this is a matter of having a strategy, of having the right tax incentives, the right investments, the marketplace the federal government also can be a part of creating that market with the purchases we make on vehicles and other kinds of purchases so we need an advanced manufacturing strategy in the

united states. the good news is we have a president that understands that. i'm very excited about the biden administration and the fact that they get what we need to do, but it's very clear we need to have our own american manufacturing strategy >> you mentioned that this is a bipartisan bill. it's $8 billion. it sounds to me like it's very similar to an infrastructure type bill. is this something you can imagine getting wrapped into a larger infrastructure bill or do you think it's important that it stands on its own? >> i think we want to get it passed as quickly as we can in whatever way we can. i do think it may very well fit into a larger infrastructure bill i think that's one possibility i think another possibility would be if there are other related american competitiveness bills that are moving forward. so we'll look for the best spot to do that i think it does have broad bipartisan support it just makes sense. it's something that has a track

record this approach was used before, as i said, it had a cap on the financing at the time. they blew through the cap quickly because it was so effective. we want to refocus it. we also want to make sure that in states like west virginia, my friend joe manchin, they've been hit hard by coal plant closures and so on, that we're focusing on areas where folks have lost a lot of jobs related to our movement into thinking so those folks are getting those jobs as well. >> i see $4 billion is carved out specifically for some of those coal areas, and that's the other reason i ask about whether this would get wrapped into an infrastructure bill. senator manchin has said he's not in favor of a lot of things that have been talked about going into an infrastructure bill if this were part of it, do you think he would change his mind and he would sayok to the infrastructure bill even though

there might be other things he'll disagree with? >> joe will have to speak for himself on that. i will say senator manchin is very committed to this approach on advanced manufacturing, getting good jobs to the united states we are so far behind in investing in infrastructure. everyone prepandemic has traveled around the world and looked at what's happening around the world, certainly with our major competitors understand it's not just roads and bridges and water and sewer systems, it's ports it's rail. it's high speed internet which now the pandemic has showed us how critical it is in every single part of our life, from education to health care to business and so we've got a lot of work to do. this ought to be an all hands on deck moment for us in rebuilding america and we can do it in a way that will allow us to come roaring back on jobs sounds like a good thing to do to me. >> senator stabenow, i want to

thank you for your time this morning. it was good to see you. >> good to see you too >> take care andrew thanks, becky. when we come back right here on "squawk box," skybridge capital's anthony scar a mu chi. plus, are nfts worth the hype our very own jon fortt is going to give us this week's on the other hand and mary dillon, ulta ceo i've got my makeup ready "squawk" returns after this.

welcome back to "squawk box. i'm dominic chu with the market minute we are looking at longer term yields after the heels of the fed meeting yesterday. it appears as though the fed is not going to do anything with short-term rates any time soon and is comfortable with the way the rates have moved on the long side to that end, the difference between short-term rates and 10-year treasury notes are now at the highest levels going all

the way back to july of 2015 that's how steep it's gotten that differential in interest rates has gotten wider and wider over the course of the past several months you can see a huge spike in the last year or so. the second best performing sector in the s&p 500 this year behind energy. look in the premarket trade. bank of america up 1.5%. jpmorgan up 1.5% citigroup up near 1.5% and then one stock to watch, travel and leisure we've been focusing on the reopening trade. carnival cruise lines is up. it's not huge but up 2%. still down half its value over the last two years analysts at ubs upgrading that stock, joe, to a buy rating. it was neutral hold rating they put the price target at 42 bucks a share. at 42, if you go back to here, that's just about where it was before all of the pandemic lockdown started to happen they think optimism around

vaccine rollouts possibly, joe, european markets letting cruises operate sooner than the u.s keep an eye on those shares. i'll send it back over to you. >> it's a mixed picture, dom they had problems with certain people before the pandemic you have to like cruises, i think, really to do that you can't -- you can get off you are stuck in small rooms a lot don't have windows >> i have a very unique view my family liked to cruise my parents are retired right now. they go on multiple cruises across multiple cruise lines all over the world i am married to somebody, i don't know if you know this about meagan, she has no interest in going on a cruise whatsoever just because of what you said she doesn't want to be confined to some place where she can't get off if something were to happen >> yeah. so it's not just a cruise with

you being cooped up. >> no. she's been fed up with me for years now. we haven't been married that long, less than a decade. >> maybe alaskaor something? i went to all the islands in hawaii without having to get on a plane to go. that was good with my parents. but -- >> i would love to do alaska the one thing that i probably wouldn't do. my parents went on a four week cruise that started off in dubai and then ended up in india that's a long cruise. >> yeah. we've talked to andrew about it. his cruise, like there's 11 other people and if the wind dies down, the beautiful schooner stops for a while, right, andrew? the gourmet chef is unable to supply the right food to the 12 other people that are on your crew. >> it's such a problem, i have to -- the real problem is just the weekly -- you know, the weekly fees and the staff of 60,

they get very uncomfortable. >> it must be flies to be andrew >> it's 5 to 1. >> don't they have a reality show like that, below deck or something like that? >> below deck. >> they do that has been on my tv when i turn it on what is this i can't find the clicker fast enough you all know you're on camera. you're faking. like we do anyway, coming up, thanks, dom don't all those reality people know that they're being filmed how do you know any of that is honest, real, normal it's not can't stand this we have a lot of that on bravo okay i like it. skybridge capital anthony tcn, tesci talks market, bioiax and much more "squawk box" coming right back

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. so with every turn, we'll keep building a world that works.

welcome back the dow is not fluctuating between the red and green, it's down nasdaq has worsened. you can see now down about 220 points a lot of this has to do with the recent move higher in yields resumption of a move higher. joining us now on the markets,

rates, talking about tax rates, bitcoin, anthony scaramucci, founding partner of skybridge capital. great to have you on you're comfortable in a lot of different places, washington as well as wall street. i think it's helpful to have feelers out in both those venues what i'm getting at is how are markets going to respond to the current environment there? we've heard in the last couple of days, taxes are headed higher 400,000 and up, but maybe corporate taxes, too maybe capital gains taxes? all of that with the backdrop of a stock market that's at all-time highs i'm wondering whether since you're a hedge fund guy, is that worrisome to you that the entire environment could be changing? >> yeah. well, list zwen, it is worrisom

long term when you're analyzing these. it dropped 40% profitability to corporations they go from 21 to 28%, joe, and that's more or less the consensus of what people are talking about. it will hurt corporate profits, but the problem, joe, cnbc reporting budget deficit $2.3 trillion without the stimulus, i don't see how we can stay in the situation that we are. you can't run a budget deficit of that size and scale relative to the overall economy then when you think about our long-term balance sheet, you can't have 35, $40 trillion of debt on a $25 trillion economy it's not sustainable more over, joe, if they don't do that, you're running the risk of lots of inflation. if you said to me, here's a card table and i have to choose between more taxes and it will help contain inflation, probably

has a capital allocator i would want that. i don't think i would want to see a spiraling budget deficit this is one of the reasons why bitcoin and other assets are doing well one of the things i am worried about, joe, is the 400,000 creeping down to 200,000, then you're getting into areas of the economy that are going to hurt people middle class people, smaller business people. so we have to see if that happens. i hope that doesn't happen i'll just remind you because you and i are old enough to remember those vinyl records. back in the '90s when we had a 39.6% tax rate, 28ish percent on the corporate taxes, et cetera, we were doing pretty well. we just have to tell american corporations what their tax rate is going to be and they'll respond with the right capital allocating activities. >> the corporations aren't going to solve it for us even if we go back to 28

just not enough money there. there are pockets of great inequality and there's huge amounts of money around in certain areas. i'm just wondering what is a way that you tap that or get out that because it's probably going to be necessary to raise revenue without unintended consequences that end up doing the -- having the opposite effect? i don't know, some people think it's okay to do the capital gains and maybe raise that it won't have a deleterious effect on capital formation. i don't know i don't know where to go with marginal rates i think a lot of people, probably you, anthony, 55%, 60% is where we are right now. in terms of when everything is done with state taxes, local taxes, everything else, well above that how much higher should that go 70 we heard that number around the other day. >> well, listen, i hope it doesn't get there.

if you're in that tax rate you're the minority partner in your own life. your general partners are joe biden, bill de blasio or andrew cuomo. it can be very painful for people to think about it that way. here's what i say to you this is a little bit nonconsensus, but if we spend more money on infrastructure, more money on jobs training and education, it will come back to us in the economy and you'll get f faster and rising growth when bill clinton raised taxes in 1993, he told people that was it that's the end of the tax raising, and by the end of the decade we had our budget at a sur surplus. it was our first budget surplus since 1969 if we can fix these problems here's what i would say to our public servants. we dug a hole since 9/11 to create this level of deficit spending we're not going to fix it overnight. let's target things over 10 or 15 years what i'm worried about, other

business leaders are worried about is our politicians are thinking in minutes, they're thinking in campaign cycles but we really need a long-term solution here for deficit spending, infrastructure spending and how to get those lines to meet up i think we've got to tell the american people the really bad news about this, it's not going to happen overnight. the good news is we can fix it if we have a 10, 15, 20-year plan, joe. >> yeah. we've got to make sure that -- you know, we have spent a lot of money on all of those things that you hope will improve the opportunity in the united states we spent a lot but sometimes we don't spend it very effectively, very well. do you think 28% on corporations would not have any negative effect we wouldn't start to see companies leave again or hurt? we had tom farley saying we absolutely would see it.

one side said we don't need a race to the bottom, jack lew farley said, if you go to 28, nobody else is going back up with us. ireland is staying at 12.5 so there will be inversions. >> i don't love it, joe, but i don't know how we're going to be able to dig ourselves out of the hole to me 28 seems like a natural compromise given everything that is going on. you're right, capital finds its way to the cheapest venues, but remember, you know, whether it's new york or california, people are staying in those states even if the taxes are high if they like their environment and they like their living standards. so it's really a catch 22 for people but i don't see how you're going to get around it. whether tom agrees or doesn't agree, start planning for it because you're not going to be able to run $4 trillion in deficit spending and keep everybody happy on the taxes remember this, i know you know this, but taxes are -- deficits

are unfunded tax liability and, you know, when you're doing this kind of money printing, it is a secret form of tax because if you look in your bank account, you've got dollars there and they just printed 20, 30% more dollars, well, those dollars are technically worthless for you and your family and so in a weird way they're secretly taxing you through the money printing we've got to come up with a clearer, more transparent strategy the clearer that it is, the more transparent it is, behavior will adapt to that transparency that's what i'm hoping for but i don't see any way around it. i don't like it. you know i'm a low tax person, of course. i think that's where you're going to get the greatest innovation and greatest growth in the economy you just went through a tragic pandemic and we have to help middle and lower income people i don't see any way around it, joe. i think we just have to start planning for it. >> anthony, where do you land on

news of the big topics of wall street, issues like carried interest you're not going to raise a huge amount of money but in terms of people's sense of fairness and also now we're going to talk about individual taxes i think that's what carried interest represents to some extent the stepped up basis given that that seems to be one of the big places where money just basically never gets collected >> well, listen. i mean, the carried interest thing has been a debate. i'll say something nobody's going to like. it gets in these tax bills and at the last minute some very clever lobbyist gets it out of the tax bill for some reason i've always been prepared to pay it s skybridge is more of an advisory firm our tax rates are quite high, but i do think at some point the carried interest is going away, but i have to commend these lobbyists. they do an amazing job of keeping it i don't know how they've been able to keep it this long,

andrew on the step up in basis, i think that is in the same category, people always look at that, they want to move to do it and then for some reason in the sausage making of the legislation that also never happens but, you know, you're in such massive deficit spending mode right now, you have to assume that those two things are also on the table >> you referenced bitcoin. i mean, do you throw spacs in? do you see a lot of fed-induced whatever you want to call it, irrational exuberance, for lack of a better term all over the place right now, anthony >> well, it could be temporary rational exuberance because you've got trillions of dollars that have been injected into the economy, trillions of dollars of liquidity into the markets, asset purchases unparalleled by the fed and so you have to worry about it you know, when we were putting

our bitcoin fund together and i was looking at dollar volume and the money supply, at that time it was at 26%. if the stimulus is fully implemented, meaning we had 26% more dollars in circulation than over the past 244 years, if you put the whole stimulus in, which it will happen, that's another 16% more dollar formation so you've got a 40% increase in dollar volume, that's going to show up in asset prices. and here's the thing that i worry about because every time we do this, it's very, very good for people that own the assets you get tremendous amount of asset implementation but the wages never catch up 20 plus million people unemployed looking at the u 6 numbers and they can't catch up and the gap gets wider and the politics gets angrier and loaded with populism. it's a very complex thing right now. the number one thing i would

recommend to people, have defensive things in there. i personally think bitcoin is a long-term edge if you really understand bitcoin, you'll understand why morgan stanley is coming into the space. it's a scarce asset. as we were talking about the last time i came on the show, the supply/demand plus the impreg nability is going to make it very attractive in a world printing money like this. >> anthony, i can't attribute the action in gold to anything other than at least a percentage of those people are now buying bitcoin and not gold because gold -- given what you're describing, gold should be running right now. is it going to be? >> the world is changing that's the vinyl record, joe that's the vinyl record. the world is changing nkts never did before with gold, anthony. that's what people would say you go back 4,000 years. is it really changing this time? it kind of looks like it look at that >> i mean, it was 1500 something

where copernicus said we may be revolving around the sun things do change we have to look at it rationally we have to accept that if money is a technology that allows us to transfer goods and services to each other efficiently, the technology around us would likely improve money, which is a form of technology and so bitcoin has done that and bitcoin has slayed 8300 competitors. it's the largest market cap of all the cryptocurrency 60, 70% of the overall market cap depending where the prices are bouncing, and in a lot of ways if you really study it, joe, it's better than gold it's easier to store you can move it around more quickly and that value and that trusted network is growing it's 110 million now by 2025 it will be at a billion. if we're right and it adopts pursuant to metcalf's law, you know, you want to own some bitcoin.

be prudent you don't have to own a lot of it, just own some of it. >> anthony, here's the question that i am always grappling with with bitcoin right now the people who are in bitcoin are speculating it's going to go up and go up significantly. 1x, 2x, 3x, 10x. this is a true speculation for people who are looking for real -- i mean, you know, outsized yields, if you will but if you think of it as a store of -- if you think of it as a commodity like gold, at some point there has to be a moment where actually it's not a 1 or 2x or 10x kind of yield, it's going to be a very low yield at all, you're just going to hold onto it. that's a totally different type of investor. the question is do people in bitcoin say, you know what, the up side isn't there anymore. i'm going to take my money out and go and look for the next one

and what that does to the price? >> okay. so that is a phenomenal intellectual discussion. i'll be brief. you're in that transitory period this is sort of like where amazon was in 2000 people couldn't believe its price movement then we looked at it again in 2009, it was a very big move over 12 years. bitcoin is 12 years old, yet if you bought amazon after the 12th year, andrew, you got a 64x return on your money from 2009 to 2021. let me just step back for a second if you bought amazon on the public offering may 15th, 1997, the $10,000 that you put into it is worth $21,140,000 today but amazon now 20 years later is trading with more stability. it got a very big pop because of the pandemic look at the long-term chart, and i think that will happen to bitcoin once it fully scales and you reach the dobson levels over

$1 billion, you're going to be, you know, looking at that situation saying, okay, it's way less speculative one last point, bitcoin got to $1 trillion faster than all of those companies primarily because it's decentralized now you're taking all of that c suite drama, all of the politics associated with it away from it. it is a fully scaling monetary network and store of value and it's going to get there over the next 15 years. >> scaramucci, there's going to be tweets of you in robes rising up into the heavens with like the bitcoin logo after that presentation. >> i'm still wearing a chute i'm never coming out with a hoodie, joe kernen. >> you're a suit you're proud of it not a good thing to admit anymore but we do. thanks, anthony. >> good to be here. >> we'll see you again soon. becky. thanks, joe.

when we come back, what would you pay for an nft and is the move to digital art over behind? that's the subject of this week's "on the other hand. jon fortt will join us right after this break. later, lordstown motors says they the sec has requested a report we'll speak to the lordstown founder and ceo steve byrnes "squawk box" will be right back.

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as fashion, sports, arts world are embracing blockchain are nfts real? is this a bubble or overbehind market jon fort joins us with more on the other hand. >> andrew, have you ever heard anything crazier than spending $200,000 on a video of a dunk that anybody can look at i have, paying half a million for a house that doesn't exist in real life that's before we get to the $69 million art sale last week. that's where this nft stuff has brought us we should not be surprised we have super low interest rates that are supposed to encourage people to take risks and now people are using inflated cryptocurrencies to inflate new markets in crypto art and crypto collectibles layers of reinforcing invented reality. here's the reason why this nft

is nonsense. the beauty of the technology is the ability to eliminate certainty. when it's digital, we make copies, backups that we see as the original manufactured digital scarcity worked for bitcoin by the buck stops here nfts are a joke. >> okay. okay so you're on the joke side that's what you believe. five years from now we'll be looking back on nfts on a bubble reaching extraordinarily high bubbles just like tulip bulbs in the 1800s? >> well, andrew, on the other hand, there is more to nfts. take the nba top shot highlight videos sounds crazy what are baseball cards except for pictures of athletes created with artificial scarcity today we experience video moments through photos it makes sense to have a licensed collector's version beeple's piece at $69 million, not as crazy when you understand

why. he was using his inflated currency to do what vcs have failed to do over the last five years, and that's spark the mainstream imagination for what blockchain can do for currency speculation and that person succeeded. yes, there are crazy nft pitches out there. they're digital paperwork and they're the future they'll be used as one of the many tools to create high end experiences both digital and physical. >> jon, i have one very important question i've been digging into this nft thing in a big way in the past couple of days. >> yeah. >> it seems to me one of the big issues is effectively you are buying access to a code, a code that runs through a gateway online if the gateway, effectively the website goes down, oversimplifying here, but if it's the only gateway there, you've lost whatever you just bought. >> well, it depends on what the

nft is backing so it really is just digital paperwork. they're going to have to be kind of audits of how good different organizations are at issuing these nfts and some of these nfts are going to back physical items. it's really a way of, i think, making high end purchases, unique purchases viable online >> all right okay jon, much more e.'ve got to keep debating this on we'll see you in a little bit though "squawk" returns with another big hour ahead in a moment

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good morning nasdaq futures rising sharply. the morning after the fed ramped up growth expectations but didn't change his tune too much on rate hikes. shares of ev startup lordstown motors are lower sec with accusations by a short seller first on cnbc interview. lordstown ceo. answers from the ceo ulta mary dillon why is she stepping down the final hour of "squawk box" begins right now

good morning and welcome to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin the u.s. futures are in red for the dow. the s&p down 25 points and the nasdaq kind of looks like what we saw mid session yesterday before these comments from jay powell that we're going to talk about right now. >> that's right, joe the federal reserve ramping up the expectations for economic growth it sees gdp rising 6.5%. that's up from the previous estimate of 4.2% the central bank indicated there will be no interest rate hikes from 2023 despite expectations of higher inflation. here's chairman jay powell's cryptic response from steve liesman about where bond rates

would have to be to prove concerning. >> i would be concerned by disorderly conditions in markets or by a persistent tightening of financial conditions that threaten the achievement of our goals. we think the stance of monetary policy remains appropriate guidance on asset purchases is providing strong response to the company and we're doing the job well and truly well. >> cnbc markets commentator mike santoli is here to talk about the inner play of stocks, bonds and volatility coming out of powell's comments. jay powell may say he doesn't plan to raise interest rates but that doesn't keep the market from doing it itself the 10-year touching 1.75% >> powell is resolute to keeping near zero and the long end is the market's business. he's telling the markets to find its own pain threshold when it comes to rates i do think it's significant.

we have yields making new highs for this cycle while the s&p 500 has managed to hover near the highs. even the nasdaq as yields have made new highs is a few percent off its recent lows. in other words, the market tries to make its number when we've gone up to a 1,000 point threshold, sometimes there's been a little bit of a hesitation in the market, a slowdown it takes time to crack down as we sit not too far below the 4,000 level. take a look at the high yield debt market indicators as well as high grade corporate debt when jay powell says he would be concerned about disorderly markets, he's talking about credit spreads if it was evident with people getting caught, it's not happening so far the high yield at this spread is investors confidence and risk appetite confidence. so far this is doing out

high grade is moving with treasury basically just a yield story, not really a credit risk story the volatility index, we had two straight closes above 20 some might think that's significant, return to normalcy. wanted to get the locng-term chart of the vix in early 2010 we did crack below 20 after a year above it after the financial crisis it was a few months. didn't last very long. we had a bit of a correction ultimately it did usher in a more stable market we'll look at how much sensitivity we had of the volatility index to yields it does seem to be responding to some degree as well to yields, guys. >> mike, it seems like such a weird tight rope act to try and walk the economy's better than we thought it was but we're not going to raise rates for longer than ever. you try to mush those two things together you start thinking about what it is the fed does that matters is it the rate hikes nobody expected a rate hike.

when did they stop making some of the purchases in the open market maybe those are the types of things that would have the market reacting to the way it used to react to a rate hike. >> it certainly would. that would be the first stage towards the move of any rate hike powell said we're not revisiting the asset purchase right now it's pretty much status quo. that can be theory to the market because there is some worry that he would hint they would look late this year at reducing asset purchases. remember, those do at some point take place across the curve so they do buy longer-term debt although he's not skewing the purchases towards the longer end specifically to dampen the rise in long-term yields. so maybe that was -- i would justifiably say, mentioned yesterday after the press conference, we often get a rethink of the fed decision on the morning after. we basically assess exactly what the implications are and right now the bonds are in control >> this is going to be a weird dance, something to watch for

quite some time. mike, thanks a lot good to see you this morning. >> you, too, becky. >> andrew? thanks, becks. take a look at these faang stocks as the 10 year yield is rising peter krause, chairman and ceo of aperture investments. down over 1% peter, you know, mike santoli just said there's often time a reassessment of what's going on the day after, so what's your reassessment the day after >> well, look, i have been saying now for the last four or five months that interest rates are going to rise. they are rising interest rates from the level they were at does not mean financial tightening, it means that the economy is growing. it means there is some price increase anticipated and it means that companies that can benefit from increased prices and increased economic activity

are going to also do well in terms of price appreciation in the namarket they have already appreciated and it's not surprising they're under selling pressure it's not surprising that companies that haven't benefitted are now getting the benefit of buyers. so i don't really see this as unusual. i think it's pretty much par for the course in what you would expect coming out of it. this is what we see quite often and it's not that surprising >> peter, is it binary insofar as you're watching some of the faang stocks come down

passive money that's come into the faang stocks that's a good question for investors. >> there has been a very big rotation one of the companies and low quality, that valuation has gotten stretched dramatically over the last, you know, three or four weeks, but i don't think that it's over i think we're going to continue to see that rotation although the speed at which it moves is slowing down and you're also seeing some differentiation in the tech world because there are companies that are technology oriented that are growing, that are still attractive and investors are going to bid for that i think you're going to start to

see some differentiation between those stocks that have been held by passive money, large amounts of capital because they're well known and those stocks that are fundamentally growing faster and will be more attractive in the future >> i assume investors are calling you saying where to put my money right now this morning when you get off -- when you get off this air -- >> i'm not buying -- i'm not owning bunds, andrew, that's for sure i think you've got to own equities even though i'm sure there's increased volatility you'll continue to see this rotation, but duration is really expensive. it's going to continue to be expensive and, you know, it's not clear to me that credit spreads are going to tighten so much they're already pretty tight and, you know, you're not likely to get a huge amount of tightening out of credit spreads. >> but are you going to go into, you know, the russell? what kind of stuff are we talking about here do you like banks now?

has all of that moved? >> if you're buying in the market -- first of all, if you're going to buy stocks individually, you're an individual investor looking to buy stocks, it's going to be difficult because you need a lot of fundamental research to decide where to put your money you could buy banks but banks are up a tremendous amount they're up call it 30%, 28% just in the course of a year. the spread between large bank stocks and, for example, the faangs is 30, 35%. buying banks here, they'll probably go up some more, but you're certainly not going to get the increase that you've seen in the last three or four months so i don't know. i wouldn't be buying -- banks i think is tough you've got to look for high quality companies that are sort of compounders that, you know, can show growth in an economic recovery that haven't been that highly valued. that's where i think there is

opportunity. i also think there is opportunity in some of the tech names that also have dramatic growth that are still going to have attractive valuations. >> peter, 2400 on the s&p. what a buy 4,000 on the s&p rates going up taxes going up we're reopening. that news is coming out. all these things have already moved. now it's time. now it's time for you, my friend now it's time. pull in the horns. it is. now is the time, don't you think? if you were -- if you saw caution at 2400, you've got to see -- and i'm not saying you're wrong at 4,000 on the s&p. >> yes. >> so many things went -- it just seems like the second derivative, we're right in that area right now for -- i mean, you expect another 30% on the s&p in the next two years? >> i think, joe, you and i are in agreement on this >> yeah. >> i i this that the -- you look

at 18 months the growth rate in 18 months is going to be slower than the growth rate today. the market has already digested the growth rate of today, that's why it's at the level it's at. that doesn't mean the market can't chug up a little bit more and it might -- and it probably will do that there's a fair bit of momentum here but is there some 20% -- 15, 20% reset between now and a year from now i would think there is >> yeah. i think maybe -- i don't -- obviously this is -- i'm hesitant to ever say anything like that, but it just -- so many things are changing that aren't friendly for this, i think. regulation, too. just so many things. makes you worry about income inequality scaramucci was talking about this politically that becomes a major thing and a headwind. >> i think the politics --

forget the politics, the fiscal activity is going to create significant momentum by the way, for that matter, you know, small cap stocks that are u.s. companies domestically focused, they're going to see significant tailwind boy, you've seen that. the russell is up, i don't know, 30 or 40% in six months. >> that's multiple expansion which gets harder and harder as rates continue to go up, right >> all true. >> all right >> peter, always good to see you. thanks. >> see you guys. thank you. coming up, tax day may be getting delayed this year, but cyber crooks are still trying to scam you as you file eamon javers is not one -- he's going to have details of that. he's not one of the cyber crooks he's going to talk about that warning. two more big interviews ahead. the ceo of lordstown motors whose stock has gotten beaten up

and ulta's mary dillon on that surprise announcement. she'll be stepping down as ceo stayun ted, you're watching "squawk box" on cnbc ♪ ♪ ♪ ♪ ♪ ♪

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a new warning now about cyber attack in progress just in time for tax season. eamon javers joins us right now. he has the details hey, eamon, what's up? >> yeah, good morning, becky that's right the cyber security firm cyber reason is putting out an alert this morning that they've spotted a new spear fishing campaign steamed around your taxes. designed to steal your personal information and maybe even your tax refund here's how it works. hackers send fake emails that seem like they're from the irs or a company about your taxes, but when you open the email you may see something like this. these are images of tax documents that you might want to read but they're blurred out when you click on them, you're hooked your computer runs malware that gives hackers access to your system cyber risk ceo said they know taxes are fantastic bait for

their scam. >> hackers are trying to convince you to click as much as possible when it's related to the irs the probability that you will click is high because everybody is nervous about it everybody wants to make sure they're doing it right and when it's happening, you just click and don't think twice. >> becky, they say as we get closer to tax day this criminal campaign is going to escalate. ultimately they say it could involve millions of emails if tax day is delayed, that just gives hackers more time to rake in the money becky. >> yikes that sounds pretty bad eamon, what do they know about who's doing this >> reporter: that's what's interesting. they're saying here this attack reveals something important about the way hackers operate today. there's an entire underground economy of hackers who developed cutting edge tools and rent them out to other criminals who actually conduct the attacks these developers operate like they're the evil twin of a regular software company take a look at this. here's the website of one

hacking firm that's offering criminals different price points for different levels of malware. they're even promoting 50% off discount this is provided to us by cybereason we don't want to send anymore traffic to their system, but they're actually offering 24/7 support lines for their criminal customers to call when they need help running their cyber attacks. this is operating just like a regular business in many ways except all of it is illegal. >> better than a regular business you can't get a live operator on robinhood. >> live customer service in multiple languages 1 for spanish, 2 for english, just like calling up the help desk for a software company except you're doing malware and stealing a lot of money. >> that is terrifying. when in doubt, just leave it out. thanks, eamon. we appreciate it we'll talk to you soon. >> eamon, you get those phone

calls? >> yeah. >> i get phone calls, there are police on the way to my house for my taxes i haven't paid. >> right. >> i get them that my amazon order for a new iphone 11, they've got the order and they're sending it with that one, i say, i can't wait send it to me. they go, what? >> the thing is, it's so cheap to do this. >> what? >> it's so cheap to do it and they're so rarely caught because they live in countries where the u.s. can't extradite they can do it on a huge scale and some tiny percentage of people fall for that stuff but it's enough to make a lot of money. >> you see what they're making, couple hundred grand a year, some of those guys, on the good scams. >> yeah. >> i think it's bad. elderly people a lot of them fall for it. i'm not talking about myself because i didn't fall for it thanks, eamon. >> and you're not elderly. >> not specifically. no, not yet.

pretty healthy. >> okay, joe when we come back on the other sides of this, the head of the ev startup lordstown motors. the sec asking the company for information after a critical n'got seller report. dot anywhere. we have that interview right after this [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today.

ev startup lordstown motors. the numbers come as the company deals with allegations from a prominent short seller let's get to phil lebeau and his special guest. hey, phil. >> reporter: hey, joe. let's bring in steve burns

joining us from the company's plant in lordstown, ohio you indicated you have been contacted by the sec regarding these allegations that were raised by hindenburg research last week. let's get to the main question that was raised by hindenburg research they say you are misleading investors. have you been misleading investors? >> hi, phil. how are you doing? i really can't address obviously the specifics of any sec inquiry, but i think i can talk to you about our sales, about our product. we have been really out front with our ramp to production, right? we're coming to market in september. behind me you see the betas being built and so we've used all of that to test the fleets we sell the fleets, selling pickup trucks. first electric pickup truck with

fleets would they buy it from a new oem like us? what's the warranty they're charging we've gone out and year read fleets and people have talked to fleets we have an unbelievable reception. so demand for 75 mile per gall pickup truck, very robust as you would think. we're at the point where we must deliver the truck and we think everything will be great. >> let's be clear here the way that you have characterized your pre-orders were reservations in the past. you called these on cnbc serious orders now people would look at this and say if you have a company that's not putting down a deposit, that doesn't have a fleet but basically are collecting letters of interest, are those truly serious orders >> well, no, we've been -- phil, we've always been very clear these are -- these are just what they're intended to be, right? these are nonbinding letter of

intents. they're called preorders in the kind of real world always classified them for that and we have a lot of those preorders. i think, you know, we have preorders directly from fleets we have preorders from people that sell to fleets because that's the way fleets buy. fleets don't buy -- in general they don't buy like consumers buy. so all we've done is gone out, gauge interest because you've got a tool to build something like this in an automated fashion, you're going to build one of these every six months, you kind of have to know how to tool and you have to know a year in front of your building. so that's what everybody uses preorders for. they are always by definition nonbinding, no money down. that's the nature of ev startups trying to gauge interest. >> i understand that, steve. some people would look at that and say, look, you were far more aggressive in characterizing those preorders as true

commitments, that you have company x, y, z that has said yeah sign us up for 5,000, 6,000. do you regret the way you characterized those reservations >> reservation -- phil, i don't want to get into the specifics all i can tell you is demand is robust i never said we had orders we don't have a product yet so we can't have orders when you're early, years away from a product, in this case one year, now we're down to six months, now we have the betas, we are starting to be able to shore some of that up. the preorders did exactly what they were supposed to do, gauge interest nobody knew if fleets would buy an electric pickup truck, right? completely unknown science no data around it so we y querreyed them letters of interests you can't do anymore than that in this state. i don't think anybody thought that we had actual orders, right?

we're just -- that's just not the nature of this business. >> steve, you are beginning crash tests, validation tests for your beta models that will begin either this month or very shortly. can you make production by the end of september >> yeah, i think that's the main, main thing, right? there's been a lot of ev startups, right? and none of them have gotten this far except, you know, this one small company in california that starts with a "t. it's starting to look like a pickup truck back here we're eight days away from that rolling off the line the complexity that it takes to build a modern day automobile. the tooling that it takes. the factory that it takes. the engineering that it takes. the validation that it takes the durability, all the regulatory around it it's got to be one of the hardest things to do and we are right on the cusp of it. >> one of those four things that

you need to do, validate and show that you can produce in mass scale are the hov motors for the endurance pickup truck i think you said last night during the conference call you've done 20,000 miles of road testing. you have to do a lot more, would you agree, in order to say, yeah, we are confident these hub motors we're going to build will have the capability and the durability to last >> yeah. i mean, just for -- viewers who don't know what a hub motor is this vehicle has four moving parts. the simplest vehicle you can see, four moving parts and the drive train. those are the motors in the wheels very new concept it's been used for a long time with electric bikes and scooters and we've upgraded that up to big enough for and tough enough for an electric pickup truck so we've done 200,000 miles on other vehicles before this one was ready. the 20,000 is just because we've had a few of these out already

and we've put them out we're building 57 betas and they will go through the exact same durability that every modern day pickup truck goes through before it goes out in the field automotive is very good at shaking things loose and determining if these are going to be reliable on the road so we will go through that exact same test >> steve burns, ceo of lordstown motors joining us from lordstown, ohio. thank you very much for coming on today, talking with us. guys, as i send it back to you we reached out and i had a conversation this morning with nathan anderson, who is the person with hindenburg research who is leading the short selling and these accusations against lordstown motors i asked him, what do you think about the call last night and what they had to say so far? his answer, i find it disappointing. that's what he told me guys, i'll send it back to you >> if he's short, why is he disappointed >> he doesn't think they're

being clear. he does not think that these are clear answers from steve burns and lordstown. >> he's not happy. if he didn't like the call he's happy because he's short disappointed would be if he's long. >> understand what you're saying he's disappointed he didn't get more details is what he's saying. >> okay. all right. thanks you know what i mean, phil >> understood. >> the worse the call was, the happier he would be. rick santelli standing by at the cme in chicago rick, the numbers please >> yes big news big news initial claims, real disappointment at least in my book we are looking for cycle lows. current cycle lows, 711,000 from november this zoomed up to 770,000. now it's not that big but it is not a cycle low and it's actually the highest initial claim level since about mid february when we were back over 800. of course, 800,000 versus 770,000 and if you look at continuing claims, a bit of a different picture.

it definitely is coming in better than expected i rephrase not better than expected but still a cycle low. expecting a number 4.03 million and we ended up with 4.124 million. that follows 4.14 million that was the cycle low. post covid cycle low which are also still too high and i'm sure we'll talk about some of the emergency programs that aren't in the headline-breaking news. philly fed for march i carry a 28-year tail of data in my laptop it came out at 51.8. the highest i had was 41.4 in '93. so this is a robust number for a march read on phillyfed index and it really does underscore all the horsepower hidden in the economy that the fed officials seem to be just oblivious to and right now we touched 250 in a 30-year bond that was up 8 basis points that's the highest level if it

were to close there since july of 2019. and at 1.74 in 10s it was up 10 on the day. should it close there, that would be the best close since january of last year, call it 13 months after that statement yesterday, nobody was kind of thinking how dovish it was. i was. there was feathers in the room what gave you the clue was the the dollar index it wasn't back up to where it was before the statement was read it vacillates. it looks at all the programs, all the stimulus and then it looks at interest rates. joe, back to you. >> thanks, rick. steve liesman joins you now with more did you hear doves, when doves cry or whatever that sopping was? >> reporter: yeah. for sure

it was more dovish than expected i talked to hedge fund guys, what are they doing? why wouldn't they acknowledge it in 2023. because rick did such a nice job with the data, i get an opportunity to go back and look a little further here and that philly fed is the highest since 1973 at 51.8 it does speak to the horsepower, at least in the manufacturing sector of the economy. you know what else was really high here, this prices paid component, which i have at 75.9, which is the highest since 1980. so that whole idea of manufacturing sector getting up and running. the supply bottlenecks, some of the commodity price increases, that's an issue. what's also an issue is the idea we're still doing 770,000 of claims that's a bad number and by the way, it maybe backs up the fed a little bit when it comes to the idea of wanting to see the data of the actual turn around rather

than raising rates or tightening policy on the come this is a very difficult thing, joe, to come back from one of these pan dem mix. thins are out of whack in all kinds of different ways. you have the manufacturing coming back strong employment may take a little longer, joe. >> steve i don't even like hearing the year 1973 ushered in the worst sffive, six years in history for inflation, stock market, ugh. i mean, i hope that doesn't mean anything when you say 1973 >> yeah. >> we don't need that. >> well, we'll have to have a discussion about this, joe what's the same and what's different this time when it comes to the inflation story >> got a long way to go from 0 to 21.5 on the prime rate. coming up -- what's that, got 21.5 points, basically. coming up, an exclusive interview with the ceo of ulta beauty

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ulta's ceo surprising the street last week announcing she's going to be stepping down after eight years at the helm of

the beauty retailer. under her leadership the market cap tripled. number of stores doubled the stock returned more than 245% to shareholders mary dillon joins us right now in a "squawk box" exclusive interview. mary, it's great to see you here today. surprise is probably an understatement i was shocked to hear you'd be stepping out of the ceo role why now? >> well, thank you, becky. so thrilled to be here you know, first, i just feel the time is right. succession planning is something that a board is accountable to we've been planning this for some period of time. the business is very strong, emerging from 2020 really strong strong differentiated business model. you know, our culture is really unparalleled with world class leaders focus on great execution and, you know, we have a strong foundation to build from we've got a great leadership team ready to take off we've got a diverse, experienced team i'm so excited dave kim bell is going to be the

ceo. i feel like we're ready. for me personally, feels like the right time aim excited. i'm confident our culture and momentum is going to continue. i'm excited to be the executive chair for a year. >> yeah. i have to say there's been so much that has happened at the company on your watch. i used to think the name of the company was ultra. >> not alone. >> i used to have to correct a lot of people about that when i started running ulta beauty almost eight years ago now i knew that it was a diamond in the rough i guess is what i would say. the foundation of a business model that's differentiated. we have over 1250 stores across the u.s., largely in the mall. we sell a great assortment of products, unparalleled in every category of beauty plus we have services all with a foundation of an amazing culture. our associates are the best in the business and the way they treat our guests really shows. >> what have you seen during the

pandemic your stock took a hit just like about every stock. in the beginning people thought you couldn't go out to stores, you revamped and did a lot of digital shopping bringing in tons of customers that way where do you see the consumer right now? what are you seeing in the stores what are you seeing in terms of what people are willing to buy online >> right first i want to thank our associates at our stores and distribution centers and headquarters 2020 for everybody was such a challenging year i'm proud of how we have emerged. we had to shut down all of our stores almost exactly a year ago tomorrow our distribution centers continued to operate and we met the guests where they were the great thing is we offer products that are great for self-care like bath, fragrance, skin care, hair care we were able to pivot our marketing. our stores reopened. our distribution centers have been at peak operations and we've met the guests where they are. coming out of this, we're well

commissioned i call it the roaring 2020s. we need to be ready for the guests to come back strong n. 2020 we feel the momentum for businesses is great and we're going to continue to be the leader in beauty sales i would also add i'm really excited about -- i would add the partnership we developed with target we developed that during 2020. we're going to be launching that later this year in the fall and we're thrilled it's yet another great place for a guest to have an experience, a wonderful experience learning about ulta beauty inside target. we know that's another great way to have more points of presence for our guests and an exciting experience for both, the target shopper and the ulta shopper. >> mary, how big of an advantage is it that your stores for the most part are outside of indoor malls? you're outside the malls, not in the malls. >> we're largely out mall which is something we continue to feel confident about the role of

brick and mortar store as well as being a great omni channel retailer you have to do it all. certainly from the pandemic we went from picking up instore to curbside and quite convenient in an off model location. we continue to see the role of both the store, which we're going to continue to build more stores for many years to come, as well as really ramping up our full omni channel capability and i'm proud of how we've done that. >> how have consumer tastes, when it comes to beauty products, changed during the pandemic were people doing more facemasks and less makeup because they weren't going out? what did you see >> certainly again it's great that we have a wonderful portfolio to offer to our guests it started with safety, self-care. more time to learn about skin care, to put a bunch of nu skin care routines into your procedures because you had more time at home makeup, more above the mask.

eyes, brows, lashes. we see that makeup in general is starting to -- we know is going to come back it's a matter of how long will it take for people to be in a situation where they're not needing to wear a mask in more social situations. hair care has been really strong for us, fragrance. the shopper for beauty has learned about self-care, learned about clean and organic ingredients and trying to do routines above the mask. we continue to see that growing. >> i didn't even think about that, above the mask people just care about the eye liner, the lashes, the brows maybe not the blush and the lipstick so much, that's what you've seen? >> we're seeing a lot of fun self-expression and beauty is another way to make that happen. the other thing i'm proud about is focusing on bringing out the possibilities of everybody and meeting all of our guests in ways from the guest that wants a more natural look to a guest that really wants to be an artist and explore we're seeing all of those come

to life. >> it sounds like you all have really pivoted and turned to the consumer and what they needed. what's the biggest challenge as we're coming out of this, as maybe people get back to more pre-pandemic trends, what's the biggest challenge you face at this point >> i see more opportunity than challenge. i think for retail, it's about being a great omni channel retailer for sure. it's continued about safety and it's about get ready get ready because the shopper i think spending was going to continue to accelerate we're not sure when that will happen we were cautious for the first half of the year for us because we need guests across many different categories and rituals, there's a lot of opportunity. there is uncertainty about when we're truly going to be through the pandemic, when it's really safe for everybody to be together and to be in situations where they don't have to wear a mask all the time. we're pacing ourselves in those challenges and feel very optimistic that we're seeing the

light at the end of the tunnel i think everybody is. >> mary, one of the controversies we've seen is teen "vogue." the new editor in chief getting anti-asian posts brought up from her past i know as a result you've stopped advertising there. can you tell us about that how long the advertising stoppage might last? >> we don't know yet, but we absolutely stand against hate and i think especially right now. there's so many challenges for the asian-american population in the u.s., obviously what's happened recently as well. what we're doing is stepping back and assessing we'll determine what our next steps are after that but really ulta beauty is about inclusion i mean, everything that we do is about meeting our guests whatever, you know, age or race or gender or sexual orientation. you know, we're about a category and a brand that really meets everybody and brings people together and shows the possibilities of beauty. so anything that is against that, that's really separating

us is something we obviously can't support. >> mary, i want to thank you for your time this morning and just, again -- >> thank you. >> -- point back at the huge gains the stock has made, the company's made under your watch. we really appreciate your time today and we hope to talk to you again soon. >> thank you so much.much. >> thank you. when we come back, jim cramer's first take on the ayading day ahead. st tuned you are watching "squawk box." and this is cnbc

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welcome back to "squawk" and cnbc headquarters where jim cramer has his take, and a day later the market may not be as happy as before. >> same thing as what we had when janet yellen actually raised rates in december of 2015 you couldn't give away these tech stocks. everyone just hates, puts the hate on tech, and did you notice this morning, it was incredible, you saw rates tick down and suddenly apple is down big what kind of algorithms do we have here? maybe next tuesday that should be your column, how the algorithms are deciding, you sell apple every time we get close to 2% on the 10-year

buy apple when >> my question to you is, is this a dip that you buy? or is this a dip that's going to continue dipping >> well, if you use the 2015-2016, if you use the metaphor when janet yellen decided to raise rates and shouldn't have, they go down 30% from their highs, a lot of them go down 40%. so that would mean we're not done >> i got one more for you. teladoc, cathie woods doubling down on teladoc. >> yesterday, wapner called the philadelphia eagles teladoc, then i see cathie wood's rundown at 6:30, yes, she'll be there, just like she is with peloton, she is not a bottom caller, a bottom creator, andrew. >> okay. >> okay. >> big endorsement for cathie wood. >> i'm trying to get you fired up here. i thought the lawrencetown interview was extraordinary. >> phil did a fabulous job fabulous job how about the world dissemble?

how about ill-advised? i mean that was an incredible interview, andrew. we got to note, that was it, that was called gotcha remember gotcha? >> where do you think the stock ends the day by the way, down 7% in the pre-market. >> then i got to ask david faber. but i don't know, i mean look at, the guy said he had serious orders when he came on "mad money," i think the guy thought he would have discussed with phil about hardhats. come on, that was unbelievable. >> i didn't understand the get-up but that's a whole separate - >> we got trucks filled. what's the problem here? we got a truck nikola had a truck but you had to push it i couldn't believe that interview. >> jim cramer, we'll see you in just a couple of minutes. >> you betcha. >> i can't wait to hear what you got to say you got more of it. >> everyone else feeling comfortable? i felt uncomfortable during that

interview. squirming a little nasdaq futures falling yields rising. let's talk markets now with the chief investment strategist, and you're so right this time, jim, getting to where we are now, and all along, you thought the reopening trade could usher in this year, maybe a 20% pull-back, and i think you still think that, and my question is, with what i'm starting to think of our, maybe some long-term head winds, whether it's taxes, regulation, rising interest rates, whatever you want to call it, we may have passed a second derivative on some of those things, you think we come back from that correction to new highs or could this be a time where maybe we pause after an in believable advance these last couple of years? >> joe, i definitely think we're going to get a correction. i think it's going to be really hard to call, whether that's now, spooked about yields, i

guess, i kind of think it might be a little later this year, after more people are vaccinated, and we're extremely giddish on both main street and wall street, about being able to roam freely and opening up businesses again, and that could come, a correction, from higher levels than we are now and that's kind of my guess. but i wouldn't be shocked if it happened now but i still lean towards the view that, you know, we're one year into the economic recovery, one year into a bull market, and this is probably a multi-year event, and you know, there's nothing too uncommon here with what we're doing, when a recovery begins, eventually, bond yields react to the better economic data, and that typically causes a hiccup in the stock market for a period. but that hiccup is usually a buying opportunity, because we start to get used to wherever the yield sort of averages in again, and then there's another

period of rising stock market against an economy, an economic recovery, that's sustainable and i think that's going to probably happen here >> so you think, i mean the elections have consequences, you think that the free-wheeling spending, the stimulus, the fed, counter-acts any of what other more, i don't know whether they're, you know, more old-fashioned but things like regulation, and higher taxes, you think that the stimulus and the free-wheeling spending trumps any of those other head winds, and the market goes up? >> that's interesting you use trumped. >> i know you're from minnesota, the land of humphrey and mondale, i know how you think, you think this is great, but - >> you know, joe, i think there has actually been over use and abuse of policies here, both monetary and fiscal, and i'm sure what that will mean, and i certainly will relook at that later, you know, this time next year, it could be a more serious

problem, it might have to adjust what i just said with that, but i would say this look, if you think back to the 1950s and '60s, we often had seven to 10% nominal gdp growth. we had five to 7 or 8% real gdp growth in the '50s and much of the '60s and yet we had a yield structure, 10-year yield which was 2.5 to 4.5, most of the time so my point is, it is possible that we could get a period of much better growth than we've had, for many decades perhaps, and still have a yield environment which stays fairly hospitable, and inflation does as well. i'm not going to necessarily reject that view right now, that's possible, i think, it's also possible deflation gets under control, and taxes, and everything else. >> jim, thank you. >> thanks. >> we're coming up against the "squawk on the street.

so we got to say goodbye goodbye to you, jim. i appreciate it. thanks and we've got, keep your eye on the nasdaq today, down 2.23, kind of got saved, kind of got bailed out yesterday, with everything else, with jay powell, and what to expect today, andrew, becky, becky, andrew, let's do it again tomorrow make sure you join us. >> "squawk on the street" is next good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber tech is in the cross-hairs yet again as the 10-year crosses 1.75 for the first time since last january 30-year at 2.5 markets watching for more signs of inflation philly fed, 51.8 is the highest in our data set at least our road map begins with recovery and inflation nasdaq and s&p futures moving lower.