all right. united health care >> they change a little more frequently than we'd like. >> they do maybe i just, i don't know, i've seen a lot of dow components come and go. i remember when ge was the original. >> they change faster now. >> we got to go. a lot of things are down this will be, if you ever watch closing bell, today would be the day to do it make sure you join us tomorrow "squawk on the street" is next >> thanks. good morning, and welcome to "squawk on the street. i'm david fabe wer jim cramer. carl has the morning off, you heard joe talking about it, today, to watch a lot of what we have going on here because the markets are going to be volatile this morning, and this is after a number of difficult days, at least if you're long, and let's get to that, overall in the market, and of course, our road map where we will be talking about some of the underlying things as well, including of course, dc laying down the spac-down. the s.e.c. reportedly opening an

inquiry into wall street's blank check craze. we'll give you the latest. there viacom cbs shares had a bad day yesterday, didn't they it looks like they may continue that slide we'll talk a little around that. and of course, disinformation nation the ceos of facebook, alphabet, twitter, all of them will be testifying in front of congress, and that begins at noon eastern. but jim, let's start off with the broader market at this point. and making calls this morning, in particular, i think this happens often times, there seems to be a lot more painthan you would know from just looking sort of at the top of the water, so to speak, a lot of turbulence below. and i'm just hearing it from, you know, from any number of asset allocators, and investors, this morning, i'm curious as to what your thoughts are, and it's obviously not just the institutions, it's also this retail cohort, that seems to be getting hurt now, perhaps, whether it's spacs, whether it's a lot of the other speculative names, we can take a look at the russell, we can take a look the

at ark, what are your thoughts at this point given what is going on right now especially with the nasdaq being down. >> one year ago, literally today, we saw people come in, younger people, and they had a run like very rarely we've ever seen, david. they believed that stocks can only go up and they were right. and who was to criticize them, when you're right, versus the hedge funds that come on and tell them that hell is coming or hell is freezing over, whatever you want to say. david, it was an amazing run but notice i say was and i think that you yesterday said the spac-outs, that was right, the spacs are, people have had it with the spacs there will be some good spacs but it may not even matter but david, it is a recognition that this cohort is being blown out and i've been using elizabeth cube ler ross, one of the great wall street strategist, we got through the denial phase and we are through the anger phase, some directed

at me and directed at you, we are in the depression phase and we're not accepting what is going on and the younger people, i got to tell you, are being blown out in a way that i think you and i can only remember from march of 2000. >> it's important to keep an eye on it. and see. but right, to that extent, we've seen significant declines in the russell. so many things that have captured the imagination of the investors. and that's why we talk so much about spacs because of course they are a phenomenon. they created a great deal of potential wealth amongst their sponsors some of the investors. and of course the investment banks that have been underwriting them at a furious pace but there's the russell, jim i mean that shows, encapsulates to a certain extent and what i heard from any number of people this morning, listen, the growth names were suffering in part because we watched the yield move up substantially in the 10-year and across the curve but nowit's the recovery names tha also have started to suffer and by the way, the 10-year is back to 1.6, after that brief foray

into the 1.7 lands and what's going on is the question. >> it is interesting is the economy suddenly weaker i don't see that obviously, this is day to day. and we have oil down today oil's been a very important. oil was down today, and the futures were up and you knew that the futures were going to give it up david, do you remember the incredible crushing that the shorts experienced with gamestop >> yes. >> i've been, i don't talk to a lot of hedge funds but in light of this, trying to check around, david, nobody, that kind of blew out the shorts >> yes it did. >> so they were not necessarily there to capture the significant down side that's taking place over the last couple of days >> and think about viacom, and what $3 billion worth of equity did to viacom. >> yeah. what it did was, listen, i mean when we talk about viacom yesterday, we've been talking about viacom a lot, again because it has been representative to a certain extent, there are those who

would say, of a speculative fervor in the marketplace. not that viacom is not a good company, a strong company, with potentially a secure future in some way, but did its valuation get to a point that seemed to be overdone, according to many of the people who follow the company closely? of course it did at 100. did we sit here and say hey, boy, they would be smart to potentially selleck ty given this level, because, you know, they have a pretty levered balance sheet, they have plenty of things to pay for, whether the efforts in streaming or nfl and new rights package and it won't begin in a couple of years, and they went and did it. good for them. unfortunately, anybody who came in at 85 and bought that stock and that morgan stanley-led offering is saying what was i thinking, why did i do it, apparently morgan stanley wall-crossed as many as 40 different accounts so it gives you a sense how hard they were looking for but they found them, they found them at 85 and they also pulled off the mandatory convert which by the way is treated as equity on the balance sheet as well, so they raised a total, i think it was 2.7 bill

great, they're going to be able to use it. i don't know if it is the way they articulated the fact that we are going to be using this for streaming, did that concern people as well because they just rolled out their strategy on streaming on paramount plus not that long ago and they're saying well, we are using that money for that, so you need more money? what is free cash flow going to look like? this morning we have a downgrade from our friend michael nathanson at moffett nathanson who is talking about valuation there and the have and have not, we can get to that in a minute, but as a reflection what is going on in the stock market, viacom is not a bad one to use, is it, jim >> no, and the other one i first heard from you is quantumscape, which is maybe one the best spacs. what we're looking for a battery that charges faster and lasts longer and these guys have it. they want to offer some stock. they announced that they're going to offer some stock. and the stock is right around 64 and 800 million. they're pricing it today at 40 so what that says is the 64 was

not a real price is that what -- and they down-sized the offer there was just, that is, again, em emblematic and viacom, now 66. >> and quantumscape goes down to 40 it was 64. and what this says to me is the prices aren't real they can't handle any volume there can't handle the shorts. you had a lance to make a deal and now it is a little late and the fuel that you got from younger people, david -- >> well, that's my question, as we take a look by the way, that does put into some perspective the year over year, viacom hit lows that may now has not seem in maybe ever, and up 350% even now and still up some 60, 70, maybe even more, i got to look at the latest number, percent for the year so let's put it in some perspective. >> right >> but jim, i guess my question to you is, we were talking about the stimis, is in the t-not being spent on stocks the way many had anticipated at least a

portion of it would or is it too early. >> more like the swimmies in i am charlotte simmen, a fantastic book, here is what i think is happening, david i want everyone to watch the crawl underneath us. okay these are the stocks that were all going up during the period - >> quantumscape by the way, down $6. >> and you will see, this is a measure of panic just as there were people who were buying these stocks, and they were typically airline, and cruise ships and spacs, and name, david, often associated with ark, palantir, well, they're give-up stocks and people just want out and i think it's important that we talk about it, because we can talk about unemployment claims, and it is certainly possible we can talk about the, what's going on on capitol hill, but what i see happening is the younger people are saying, you know what, it turns out that stocks can go down, too. i thought that stocks, as david portnoy, in circular reasoning did say, stocks only go up so

buy stocks, well i think they're discovering when stocks go down, when stocks go up, it's a game, when stocks go down, it's pain >> okay. when do you think it, do you have a sense as to a signal it's coming to an end we know a number of growth names have been hit over a number of weeks as we watched the yield move up. but recovery names a broader sort of decline here when do we get a sense it is over >> when they pull their deals rather than price at $40 which is really ridiculous when people like greg is doing a great deal, and there may not be a next greg because greg is terrific but when they cancel their deals and listening to leslie picked, how ipos are flooding in, when that ends. all of these things have to happen you have to have a give-up of stocks down 5 to 10%. watch nike it is a great tale because nike, the critical comments that they may or may not have made frankly about

minorities being discriminated against in china, it is going to cause apple to be down a lot today. so you're having a crescendo, david, and that's something i used to talk about with the late mark haines, and we had a crescendo earlier, we celebrated the anniversary monday, that was the hedge fund crescendo and the mutual fund crescendo and now what have we got holy cow we've got, jimmy chill needs to be called in because people aren't chilling >> people aren't selling they're not happy right now. >> let's talk spacs for a bit. you mentioned greg, a senior member of management team at goldman sachs who left to join msd capital, as we always like to say, best hair on wall street, i think that's unquestioned, really, at this point, but $500 million spac zeal and they will say that they are differentiated, jim, that michael dell's presence, that the presence of significant board members, will appeal to those who are thinking about

going public through a spac, that it will make them the marriage they want, as opposed to another spac, and one would expect these guys will also do, to barry sternland's point yesterday, a lot of due diligence and the like it, is another $500 million, the deals that have been coming lately, have been trading below 10, and yesterday we saw a number of them, i don't know how many we can put up for you, decarbonization plus acquisition. disruptive by the way disruptive led by a very well known venture capital, not maybe very well known, very successful, a lot of athletes, naomi osaka, the great soccer player, northern genesis. >> and that is one of the things - >> look at all these names just priced in the last couple of days. all trading below 10 >> oh, my god. >> and so the question becomes, you just stop pricing them right? at some point.

>> yes. >> and this is going on for a while. behind the scenes things have been decelerating for a period of time which is why i talked about the so-called spac-out yesterday because it wasn't just day one that somebody pulled down the curtain you have pipes private investment, public equity that typically comes along when a spac announces their deal those are getting renegotiated those have not been pricing. and you had deals that have actually, you know, at least not been ready for prime time, jim so to your point, we're getting there. can you imagine the flood, it is now a trickle. >> and these big mutual funds that we're in, i mean we're going to look back and say they aided and abetted it we're going to look back and say ark aided and abetted. >> she was buying spitfire, yesterday, cathie wood. >> spitfire. >> yes she bought it. >> how about lancaster i saw operation ark. that was a number, lyndon johnson had that one going. >> and they're out of names even >> she bought it spit fire acquisition corp >> she was buying that yesterday. >> spit fire, okay, so maybe the

measures are shot down david, i'm a little tired of it. and so you are. >> i can tell you are. >> and this is no laughing matter a lot of the younger people who came in are realizing what you and i both know, it is just a much tougher game, and i'm not, you know, and we're going to get criticized like we're on the side of the hedge fund, the hedge funds were blown out last year, i am on the side of the people who don't want to lose a lot of money and when i see quantumscape, and i read the piece, it wasn't that information. >> it was a good piece it was a good piece about the haves and have-nots, and does downgrade viacom this morning which may be one reason the stock is continuing that decline we saw yesterday but we'll see. 17 minutes before we get started trading. we're going to take a commercial break. >> i ran into someone who owns snowflake and i said why do you love snow phflake, and they said well, because it's a great company and what does it do and the guy says it's a great

company. that's what it does. >> okay. >> well, you know, at 100 times sales, you better have more than that >> commercial break. we're back on the other side and we'll talk a little bit about banks as well as more on that nike story.

mau may have seen it in the

beginning of the show, shares of nike under pressure, after a target of criticism on chinese social media, jim, and i know this story has gotten your interest why? >> well, first it's a great company. second day of the quarter, that people felt was weak because of the problems at ports which are not letting up, according to their call, and mostly balk nike has had fabulous relations with prc, they are with the sports ministry, and coming up with a plan for people to be in shape, and obviously nike is big, big in china, and this is causing of course, everyone's going to look at any of the companies that are big in china, which will then relieve the pressure in apple. this is civil rights one of the things that i think -- >> we should tell people what is going on here because some people may not know the story. >> go ahead. >> i guess they put out a statement saying they were concerned about reports of forced labor in the xinjiang

province and it doesn't use cotton from that region, talking about the uyghurs, that autonomous region there and it does go to a relatively new phenomenon in corporate america and around the world of companies feeling as though they need to take a position or a stand on certain human rights issues, and it can of course result in other impacts on their business in doing so. >> earnings per share cut. because they're making statements these are principal companies. what i think is difficult for people to understand about what's going on is that we had tremendous tension, david, between china and our country, during the previous administration, but it was really geared toward commerce. it wasn't really geared toward minority issues. the other thing that you're going to find, climate control, i see that the biden administration is actually asking for science with epa, going back to science. >> yeah. >> science

but what's amazing, david, is i had nucor on last night, one of the things that they're banking on is that the chinese pollute the sky by making cheap steel, and that the biden administration is just as vehement about that as the trump administration was about dumping, so pollution and minority rights are the new calling from governments. >> right. >> and david, what it's going to mean, that companies that don't do business with china do better than those companies that don't do business with china. >> or because of the various constituents, stakeholders, employees, shareholders, they feel they need to say something and in this case, nike does, and they sell a lot of, a lot of product in china. >> david, don't you think it's interesting that in the year 2021, taking a stance against forced labor is regarded as -- >> it's not. except in china. where it's going to raise

antipathy from people in social media and sales going away. >> do people not understand it is a communist chinese dictatorship that is largely run by the pla and has a strongman who is in charge what is it about china that people are confused? >> i don't know that many people are confused >> no? >> i think they understand what's going on. >> they want their dollars they want the congress. >> it's a giant market, isn't it >> hey, come on, you're a man, a dollar sign impersonating a man, shoe know. >> i'm the most sincere man in north america but i'm still against forced labor i don't even think that's a radical view. >> i don't think so, either. >> how about child labor are you in favor of 12-year-olds going into coal mines. >> i'm not in favor that >> i'm with lincoln. >> a good place to be. >> take a palestinian. think about what you want to do for your mad dash. and everybody else stay with us. >> newscorp, bought investors

business daily. >> really? >> we got about 19 minutes before we get started with trading. we're coming back right after this ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ walter, did you know geico could save you hundreds on car insurance and a whole lot more? so what are you waiting for? world's strongest man martins licis to help you break down boxes? arrrggh! what am i gonna do to you box? let me “break it down” for you... arrgggh! you're going down! down to the recycling center!

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♪♪ ready for the opening bell as well seven minutes from now. darden. >> yes, i'm hoping the young people regroup and if they do, my daughter and i love to go, olive garden, which had numbers, believe it or not, that are regarded as being pretty good, they have minus 26, and looking for minus 29 but this is all about last man standing i wear this suit when i go to olive garden because i can stuff the rolls in here. >> a lot of pocket room there. >> but here is what matters.

they did $2. people were looking at $1.95 37 cents all the way back to 8 cents, which is what it was before -- 88 cents, which what it was before the pandemic and if you looked at this chart on a longer-term basis, to where it was a year ago, you're beginning to see, david, a serious separation from the companies that are solvent, to the ones that are under. david, you want italian food in this country you think you can go to one of the 150,000 restaurants that went under you think you can go to the long shoreman, my italian bistro. >> i wish i could. i love that. >> no. but you can go to olive garden the never-ending salad bowl, david. the things you have on the table you can play games so you don't have to talk to your parents a fabulous place to eat. and it's killing it. it's crushing it and last man standing so there's something positive. >> back to our conversation about checks i mean is that where these things are being spent >> the stimis? >> yeah. >> i saw them buying qqqs. that's good.

but then, gamestop and tesla, we haven't talked about those two remember, gamestop said they might do at the money offering, might do ang actual offering, offerings are the kiss of death when you look at quantumscape and pay, which is a company i like >> viacom. >> viacom there are no shorts left, david, they took them out, the gamestop massacre, almost like the valentine's day massacre >> all right, we've got to go for a second here, we'll be right back with an opening bell and talk about the banks, some earnings that we got last night from jeffries, interesting to look at as well. stay with us

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welcome back we got about two minutes before we get started with trading. jim, the banks of course have still been a relatively strong part of the market, energy also has been hanging in there. i did notice jeffries numbers. we don't talk about it that often but it has been a charlie loves market cap now at this point, they blew it away, i mean just crushed it. they had a 43 1/2% return on tangible equity. incredible 43 1/2%. and all the numbers as you might

anticipate, we can take a look at them in terms of investment banking and one of the reasons we do like to look at this as well it can be a refreks of what we can expect from the larger banks when they come but advisory equity, underwriting, that doesn't put in perspective the year over year comparisons which is really what we were trying to show here, but you can see where we are >> it is amazing >> the numbers were up 80-plus%. >> i don't like the idea of value versus growth. it's not it's upside surprise companies versus companies that deliver okay earnings. >> richard handler, david, he has made this, it's not a renegade firm, boy jeffries, i know boyd jeffries pretty well when i started trading, a scrappy guy, a great guy, and richard handler put together a powerhouse his dad was an accountant for years and years. >> you said that many times. >> he was the greatest and they benefitted from middle

market stuff they benefitted from the spac craze. and many firms have. we will have to wait and see it. doesn't perhaps that they will be sustainable. >> is it peak? >> with 81% capital market, net revenue over what was a revenue a year ago anyway. and there's the opening bell there, you can hear it right there at the big board, the maker of online marketing tools celebrating the ipo and at the nasdaq, a provider of hygiene products. >> and we want to see charities ringing the bell we don't want any more companies. >> what about the banks? we're talking jeffries let's talk about some of the larger names which are still quite positive for the year. is that a place to hide? >> i don't want hide in anything i think you got to like stocks and when we see what we're talking about, which is we need to see a cessation of deals then i think it's possible we don't need these stocks now either look, it's fine. it's okay. let them go down a little.

they've been unbelievably good i'm just calling for a pause here, david. i'm not saying it's a bear market i'm saying a little pause. let these stocks, bank of america has done really good this year. let it hang there for a while. >> right. >> but i think that we have to start worrying if, when quantumscape and viacom, by the way, these are both blue companies, of the spacs, quantumscape's got something, it's got something. >> you believe in their solid state battery technology. >> i believe that -- >> that's what we're talking about. it is down 12-plus percent on the news of the offering that they down-sized but are getting done >> let's see if it holds >> yeah. >> but it just shows you that if you're in a stock, many of the companies that have come public need equity so therefore i think you don't want to give up on jpmorgan, you don't want to give up on jp morgan, you don't, it's just a great company but at the same time, i mean if we're all talking about the need to stop spacs, and stop ipos, and stop the supply, well then there are going to be some

people downgrading these stocks. >> yeah. there are. >> i mean jeffries doing that blowout quarter. >> and listen, they have moved up like so many other name, moved up in anticipation of what was expected to be a very strong quarter. now, obviously, part of it may also be in particular, that firm, maybe they're taking market share as well. >> and pat gelsinger. >> intel, yes. >> you were featured yesterday a lot, in terms of at least being the naysayer there, and trying to rain on mr. gelsinger's parade. >> that's not fair >> 67 to 61. well, bravado, i think it's terrific what he wants to do but at the same time, remember the days when someone would say the stock ran up and someone would have something good and it would keep going up, which is a new kind of money management, or maybe it was the skinny team

stimi people, skinny, and remember people would sell the news and remember stocks -- >> it feels like it was just yesterday, you know what why, because it was just yesterday. and gamestop's up. >> oh, my gosh >> up 5% >> there you go. >> that's kind of a -- >> you know that's zinder note every man dead or alive must do its part it's got to do its part. the people were dead, they have to do their part to keep gamestop up and ryan where was ryan >> i don't know where ryan is. eating ice cream. >> was he saved? >> saving private ryan is that what you're going with. >> and yesterday was a bridge too far. >> military movies >> george sherman. no, this is like, it's fear now, david. it's richard iii >> i wonder if gamestop, that

was a good point by the way, a good play by the way. >> you liked that? >> kingdom >> and you didn't like the comedies >> i think they were, if they were done properly, they were very funny >> it's happening. and it's going to stop the moment that the flood stops, you can come back. because you and i both know the youth movement is not over >> no, i don't think it is it's here to stay. >> it's going to be here to say. >> they're going to be focused on the final four for a while. >> 16 now and then focused on that and when march madness pass, maybe they'll come back to betting on the stock market. >> they are going to have to re-think the way that they invest because they were a little too bullish. >> we have a hearing coming up at noon, we're going to hear from dr. berg, and dorsey, and sundayhar pichar, and anything

there for the testimony? >> it is interesting that you have different points of view how you defend yourself and alphabet has talked about how they great they've been with the election and zuckerberg is a little more cerebral, in he has a broad rap about freedom and jack dorsey basically is saying look, we're about transparency but all of them, david, i think they'rein a second stage now, which is all right, you want to regulate us, well, what are you going to do? are you going to set up, are you going to set up the interstate commerce commission of 1887? where you have a captured agency that then does exactly what these guys are doing now by the way, david, facebook is so cheap that's why i say, this is not value versus growth. >> right. >> facebook is so cheap. that's one that you want to watch. alphabet is cheap. a lot of ad money. so it's not like there's a bear market in everything

>> no. that may well be the case. >> i had nucor on last night do you know they are going to have the best quarter that they have ever had and they think next quarter is better, and eight times earnings, the largest steel company in america and a company that recycle, the greenest company in steel, and do you think anyone who is younger cares about nucor? >> probably not. >> i could wear a sandwich board that says buy nucor wherever young people congregate, i don't know where they congregate because it's covid, put a mask on that says nucor and they don't care because they don't want nucor they want ark. >> would you say buy nucor or the symbol, nue? how would you do that? >> i haven't thought about it. they want ark. >> $20 billion market value. nucor. largest steel company in the country. and the largest aluminum company has a billion dollar market value. >> all kinds of steel. ready for infrastructure eight times earnings you want something great, that's going to be great year over year

compar compare, comparisons, things are turning. >> nasdaq is only down half a percent. facebook, apple, google, all up. >> faang is cheap versus its history. i had last night the wrong faang going up, diamondback. we don't want to see diamondback going up we want to see faang going up. because these stocks have had their multiples compressed they are natural leaders they are terrific. a year ago, this week, apple fell below a trillion. it shouldn't have. i think apple can do fine with china. i think china -- >> china's important but i do feel, david, that we're going to have reversion to companies that are very good and are not companies that are dream companies. >> okay. well, that will rule out a lot of the companies that have come public through spacs over the last few months. >> but these are good. >> they are. >> go through the testimony. these guys are, zuckerberg is very thoughtful, i mean he's not

like thoroeau. >> do you know i lived in emerson when i went to school. >> no i did not know that even all these years after this long partnership still learning new things. >> it you see that chrissy teigen got off twitter i mention that because she was a very important member of that community for a very long time it may sound silly but maybe it's not and you know, you deal with awful haters all the time, but there are some people who just finally throw their hands up >> i love the haters they make me happy twitter is a very expensive stock but it has such great momentum the pay pals and twitters do they continue to go up i think they have something to recommend them for but david we will have reversion, not to value, but to inexpensive stocks that were expensive. so that's what to watch. david, you just asked me about the key to the market. >> yeah, i didn't today, because we were busy talking about

jeffreys >> stop doing that. >> today is the first day i haven't done it. >> the key to the market. >> i'm giving you salesforce. >> again >> i think it was yesterday. maybe it wasn't yesterday. >> straight down from 284 to 206. they lost the guy who was brilliant, went to amazon and tableau and amazon web service i think he's fabulous but i want to know, david, can you hate the slack deal so much that you don't stop telling salesforce? the momentum attack? >> i don't know. but i'm so glad you gave me a chance to talk about it. >> i thought it was a segue. >> photonics we do have to talk about it. well done. for a briere pf period, a biddi war, for coherent, they go with 2.6, the composition of the deal amounted to a couple of bucks

less you could argue lan the lieu men tum argue for coherent but it still needs a shareholder vote, don't forget, it still needs a shareholder vote, lumentum gets their money and gets to go home. the stock is going up. still well below the implied value of the deal. in part because there is still a lot of approvals here that are going to be needed so we are talking about a decent amount of time listen, the board may have thought, well, it's going to be a little less leverage, i think they probably like the management team better, and just think that they're going to be able to deliver more on their overall, execute on their plan for their part, 2.6, we create a global leader, a greater scale to address irreversible mega trends in the compound solutions, semiconductors and laser technology and systems they're saying it is going to accelerate their growth, increase their competitiveness, on and on in terms of sales

synergies and remember when they all had a chance to look more deeply into it, the numbers suddenly went up there you have it for now. lumentum, for their part, they didn't say it is not over but not happy and the board has chosen to accept an offer that is inferior. they had 283 they were at 281 and they're still sort of throwing their hands up and wondering why they did it, from what i'm hearing, their there are any different number of reasons including the compressed leverage, increased leverage with the combined company. >> look at cisco again there's a value stock. it is not a value stock. it's a growth stock. it is year over year earnings and they hung on to the deal they renegotiated. a lot of people thought they would walk away. chuck robbins has a stock, listen to what this stock has, okay it's at the 52-week high. >> talking about cisco now. >> yes. >> almost 3% yield it has a pristine balance sheet.

>> yes. >> david, it is about enterprise 5g people are starting to come back to the central office. on the same, that there are plenty of stocks that the stimis should think about >> look at that. look at that >> you don't have to just be in amc. >> no, but also the performance this year is paltry to say the least compared to many of its competitors. >> it's not expensive. it's an inexpensive stock, it's not a growth stock, it's at 16 times earnings, it will have good year over year number, i'm urging people to reconsider what they're buying, particularly the younger people because there are stocks that are working, david it's not just the ones that they're buying >> right >> let's get to bob pisani bob, we do have a bid here at least for some of the biggest cap technology names but overall of course the market continues lower. though already off its lows of the session. >> yes, it's a very strange market it's actually a very modest drop the s&p is holding up okay but

there is a lot of underlying anxiety. let's take a look, nice open here, at least we're seeing some movement in some of the tech names here, it's flattish but not as bad there's the ark fund you can see the reflation trade is not working and the tech trade is not working this is a sort of characteristic of parts of the market in the last few day, it's got a little bit of concern energy is a complete round trip. up 10% in the past month and down 10% in the last month as far as market issues, there's three or four things that are really weighing on everybody right now. first is that we had these stable lower yield, it's not helping stocks overall and then we had the high-tech multiple name, those over 30, multiple, sort of breaking down rather noticeably, the reflation trade is not really running anymore. it's not dropping dramatically, energy is. but the rest of it is just not really going up anymore and then we have the strangest issue in the last few days with retail interest and i don't know how much of a trend this is, but very strange with gamestop and amc, big day for gamestop, down

30% going into the close and could not attract any buyers, two-thirds of the normal volume. same with amc. big down day, you can see kind of the flattish today, but you want to keep an eye on that retail interest, and maybe david's right, maybe they're all out betting on march madness at this point in terms of sectors here, very noticeable moves here in the last, really since the middle of february when interest rates started moving up and the ark fund down 30%, the ipo fund, down 28% spacs, you see all down about the same here. the big momentum names and nasdaq, s&p still only down 3% from the historic highs. so that's what is strange about the certain sectors in the market hit really strongly, you can see today, you can look at some of the ark invest holdings crispr therapeutics, zill low, roku, all of those names, flattish to slightly down but a lot of damage in these names if you look at it from the 52-week high, for most case, the 52-week high was in the middle of february when interest rates started going up and that's when they started going down. look at the declines here. now some of these all have muls

that are huge. zoom has an 80 multiple but some don't make any money crispr, teladoc, roku, the big high multiple names are the ones that got hit the most as the rates moved up and the mega cap tech name, not nearly as much damage but pretty noticeable and amz, xilinx, some of the big semiconductor names more than 20% off of the highs very strange moment in the market here. not quite rotation, not quite moving down, there's the struggle, to get a coherent theme going. david, back to you. >> yes, thanks, bob. it seems certainly to be the case and again, those big cap tech names are a bit higher this morning. let's get a check in on the bond market with rick santelli good morning, rick. >> good morning, david you know, this morning, we brought out some important data, even 684,000 on initial claims is too high and 3,870,000 on continuing is too high, it is

humongous progress let's take a look at the chart the all time high ever in initial claims prior to covid was 695,000, you see it there on the chart, and 1982, but what's fascinating is when you go to the present, all of that turns into a flat line because obviously, that high water mark, from march of 2020, it was just under 7 million, so you can see what happens with automatic scaling. the point of this is, is that not only are we making good progress, we did pass something that was almost $2 trillion, and the hook for that is, that's going to help on this jobs front, so we're making good progress, that money obviously is just starting to get in the system and it is helping to fuel that supplemental jobless benefits that would have expired mid march. so all things being equal, at face value, this is a very good start. now, if you look at the one week of 10s, you can see, 153 should be pretty good support, zoom it out, you can see from february, that was a key close, we have drifted from those 172 1/2 high yield closures that we had last thursday

finally, let's look at what is going on with the dollar index this is a one week chart one week chart look at that it is over a penny, up over 1%, and we continue to see the dollar index is a good tell that interest rates, even with their current pullback, most likely will continue to remain firm jim, david, back to you. >> that's quite a chart. >> rick, thank you rick santelli with the bond report. before we go to break, take a quick look at the markets, as you can see, the dow, the largest single loser right now, the nasdaq well off its lows, only down 0.12%. a lot more "squawk on the street" for you right after this we see temperature control software giving everyone a shot at vital vaccines. at emerson, our software is shepherding medicines through every step of the cold chain,

helping track conditions to keep each dose safe and effective. emerson. consider it solved.

krit credit suisse is giving junior bankers $20,000 bonuses as wall street addresses concerns that junior bankers are overworked and under paid during a surge in capital market activity under paid i don't know jim, interesting, now, by the way, credit suisse, one of the

firms that has been flat out because they have been a leader in underwriting, spacs. >> wow well, i'm not sure it's money that they want >> what do you think they want >> they want freedom they want freedom. >> freedom. >> they want to be treated with a better -- i don't think $20, $20,000 emil rates the pain. >> they are spending virtually nothing on t and e nobody is traveling, nobody's taking black cars home at night, getting food in the office, none of this. >> he's had a great quarter nobody liked, you want a great company, you buy adobe a fabulous quarter no one cares they talked about how expenses are coming up, david, because people are going to start traveling and seeing clients again. >> they are. >> margins are going to get a little depressed there by the way, adobe is another

example of a company, a lot of money going straight to the bottom line. they have been spending nothing. >> the quarter was incredible. that's the kind of stock that people stimmy, people should buy. it's not going to be a meme stock, adobe it's never going to be a meme. >> two, cisco and adobe. let's take a quick commercial break. perhaps jim will have some more names to share with us we're back after this. ♪ ♪ ♪

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just listen to ritchie haven singing freedom, great song. what do you got there? >> this gives you pimples and stops covid, it helps against the cold and flu season. rite aid is down huge, bringing down the cohort, walgreens, which is run by roz brewer, who i think is going to do a remarkable job cvs raised today i think because of the vaccine but i think the snow, cold and flu season, that can reverberate throughout the whole industry, so i don't want to own the drugstore stocks right now. >> there aren't a lot of positives. one has been that we basically had no flu this year. >> this helps. it helps and daivid, i have another stoc that should be up.

>> what's on the big show tonight? >> ra. this is one of the best quarters ever, and then grow generation, david, that's the pits and shovels that you need in order to get into the cannabis business and we've got new york state on the verge of allowing people to grow cannabis. i'm not sure what cannabis is. i know that people say it's pot, but pot to me, david, is -- that was a fertilizer company >> there's a lot of empty store fronts in new york city that would do well to become dispensaries, jim, and provide much needed revenue to the state and to the city. >> yes, that's why gambling so good they haven't gotten it right in new york both of these stocks should be higher, but if everybody is going to focus on palantir and blackberry and amc, they're going to miss real companies that are doing real things. >> i picked up two of them from you today that you have been positive for some time i don't remember you being quite

as enthusiastic about cisco the other day. >> they had a couple of misses, but it was never expensive i was waiting for people to come back to the central office now they're coming it's a reopening play, and i should have been more cognizant of that. david, we should not cancel despair. we should cancel despair but start thinking about real opportunities with real companies like a new corp. >> okay. >> i'll see you later on "mad money," i'll be watching anyway. >> restoration harbor, hr i got it. >> good thursday morning once again, i'm david faber with morgan brennan, carl has the morning off. let's give you a quick look at the markets half an hour into trading at this point, kind of bouncing around, but down, and not sharply but as jim and i spoke about in the last hour, the damage has been perhaps more significant than would be apparent from the movement in the broader averages let's get to our road map.

astrazeneca, revising its efficacy data, after facing accuracy questions. the fate of a massive container ship blocking the suez canal, complicating global trade. why it could take weeks to move and what that means for the world's busiest waterways. and keeping an eye on shares of viacom, the stock has tumbled 30% just over the last two sessions. >> you're watching that closely. we're going to start with more trouble on the vaccine front the role of astrazeneca's covid-19 front meg tirrell has those details. >> it's been a strange week for astrazeneca. monday we got the efficacy results showing 79% protection against symptomatic disease but then just hours later the data safety monitoring board, the oversight board warned the data were outdated and we heard they

could have been misleading in terms of efficacy. the company now has released updated results that really, guys, haven't changed much now they're saying the efficacy was 76% against symptomatic covid-19, in terms of severe disease which many experts say is the most important thing for a vaccine. still 100% efficacy. the estimate for people over 65 went up to 85% efficacy from 80%. there were more cases now in this updated look for them to analyze. 190 now as of this data cut. eight severe cases so strengthening that finding up from 141 overall cases as of the last time. guys, the head of research for astrazeneca saying this primary analysis is consistent with the previously released interim analysis quote, we look forward to firing our regulatory submission for emergency use authorization in the u.s. and preparing for the rollout of millions of doses across america guys, the take from the public health world this morning where will seems to be that, yes, the

vaccine probably looks good, but we really want to see more information. dr. nahid bhadelia tweeting quote at this point we'll just wait for the fda submission pact to avoid anymore roller coaster rides, and that really has described this week, and really maybe the last few months for astrazeneca and its vaccine, guys. >> and of course it speaks to the public optics that are out there now already as we are looking to or the government is looking to encourage more and more people to go out and get vaccines i want to talk to you a little bit about herd immunity, meg you know, there was an opinion piece in the "wall street journal" that herd immunity is near despite fauci's denial. as we see more shots get in arms and you factor in the antibodies and getting more data at least on a state by state basis. how close are not close are we to herd immunity what is the science telling us in terms of where the goal posts currently lie? >> well, so the short answer is we don't actually know exactly what threshold is needed to

reach herd immunity. in terms of actually being able to stop transmission of this virus because enough people are protected, to protect those who can not be vaccinated. dr. fauci has been shooting for very high numbers, you know, 85% of the population being vaccinated in order to get to that point, but, you know, some experts have said that with the existing immunity in places and vaccine coverage, you do slow down the trarnsmission of the virus, and that can make a huge impact in fact, if you look at case numbers in israel, for example, where they have had tremendous vaccine coverage, they have really come down it is very good and reassuring news that as we roll out more of these vaccines, it will really make a difference. so it's not sort of binary, we finally meet that herd immunity threshold, it's all over it's going to change over time as more people get covered. >> and yet, meg, there continue to be pockets of the country that are seeing fairly significant outbreaks, i guess, and obviously there's continued concern as well about the

variants as we call them and not just the south africa or the u.k. but ones perhaps that don't even have a name associated with them yet. >> yes, and in fact, we looked yesterday at b 1526, which is the variant that was discovered in new york, and we talked with new york city's health commissioner who told us he thinks that is keeping cases higher than they should be in the city that variant along with b.1.1.7, which is associated with the u.k., both thought to be more transmisable luckily it appears there's are still susceptible to the vaccine, so they should provide protection, if you get vaccinated, and so variants are something that people are concerned about and could be contributed to spread, but the vaccines are a tool against them >> meg tirrell, thanks for bringing us the latest headlines there, the latest information. another big mover to get to this morning within the health care sector, shares of rite aid falling sharply after warning q4 results may come in lower than expected due to a weak flu season the company saying they see a 90

to $100 million loss instead of the previously expected $125 million profit. sales of cold and flu products which are normally high margin plunged 37%, full q4 results coming out on april 15th the news also weighing on walgreens, as you can see rite aid shares are down 20% right now, and walgreens is down about 2% in sympathy david. >> wow, you knew those were high margin products, air in a box mostly what the cost is. >> such a swing. >> maybe not quite that high huge margins on those. and that is quite a significant decline there for rite aid let's now turn to capitol hill the ceo's of facebook, google and twitter, all three appearing before congress later today to discuss misinformation on their sites. our ylan mui joins us, she has more on what to expect a couple of hours from now. >> reporter: david, expect this hearing to be extremely long and cover a lot of ground. it's not just going to be about the riots on january 6th

but also the false claims surrounding the 2020 election, the foreign interference back in 2016, and misinformation around covid and the vaccine. this is the briefing memo that democrats on the committee have been circulating it accuses companies of ramping up the fight against misinformation when there's social or political pressure even then it says they can't get ahead of this problem. republicans have an agenda of their own, ranking member cathy mcmorris rogers outlined her priorities, deplatforming, election bias, and of course section 230. now, ahead of this hearing, zuckerberg proposed a tradeoff for the tech industry's liability protections. instead of blanket immunity, he said it should be contingent on the companies having a system to take down unlawful content, but his idea is already getting the cold shoulder on capitol hill. congresswoman anna eshoo called

this a masterful distraction, and senate finance committee ron wyden is deeply weary. he said mark zuckerberg knows that rolling back section 230 will cement facebook's position as the dominant social media company and make it vastly harder for new start ups to challenge his cash cow guys, he also said that lawmakers shouldn't be allowing facebook to rewrite this law back over to you. >> ylan, this isn't their first rodeo, the tech ceos, sundar pichai has testified three times, facebook's zuckerberg, six times. we have a new congress in place, a new administration in place, but in all reality, how much do we actually expect to change in terms of regulation off of this testimony we hear today? >> well, not that much immediately. you know, what democrats are framing this as is a solution oriented hearing, previous hearings were focused on sort of finding out information about

the companies. they really want to sort of pave the way for their own new piece of legislation around reforming section 230. but the reality here is there's not yet consensus on capitol hill for how to tackle this, and by the way, you can't do this through budget reconciliation, so you would need to work with republicans in order to get anything done. and that pushes the time frame out for actual legislative action on section 230 out until next year at the very earliest >> ylan, thank you. ylan mui, anger on social media in china overnight a statement from nike resurfacing over concerns of forced labor our eunice yoon has been the following story closely as we watch shares of nike off the lows but still down 3 1/2%, eunice. >> and probably for good reason. you know, here tonight we are seeing videos of chinese burning nike shoes online. those have been circulating all day today amid calls to boycott

the company. now, nike has been in the cross hairs today because of what appears to be a past statement from the company, which said that they expressed concern about reports of forced labor in the muslim area of shin jong, this is in the far west, and said that the company had dropped cotton from the supply chains nike is one of several companies here that have been facing this kind of criticism from the chinese public that includes the gap, adidas, fila, new balance, unico, as well as zara, and this all comes after the u.s., as well as other countries in the west sanctioned beijing over what they see as mistreatment of the muslim uyghurs, so chinese celebrities have cut ties with nike, also tonight chinese online have been calling for chinese sports teams to drop nike sponsorships. the good news here is that so far nike stores have been open

all day. their products are still available on alibaba, jd, as well as other sites, and that isn't the case for some of the other international brands likely good news for nike given that china accounts for 23% of nike's brand sales what i thought was also interesting time, the global times editor that is quite influential of the paper, said that the chinese government shouldn't fan these flames but instead that international brands should go back to their governments and lobby to be able to use shinjon cotton, and the reasoning here, and what it really highlights is that it's a very complicated game right now for the chinese because they want to still be seen as welcoming foreign investment, they know it's good for the economy, at the same time, they want foreign companies to play by china's rules guys. >> eunice, forgive neme for beig

a little confused. i realize we had the fresh round omp sanctions, and the nike statement getting quoted this was published in november of 2020, why nike, why now? >> reporter: right that's the question that everybody's asking because all of the statements from those companies that i just mentioned, they're all past statements. they're from a year ago, up to a year ago, but it's just in the past couple of days that suddenly we're seeing them surface online people are getting really angry about it you know, more than like 15 actresses and actors dropped adidas because of one of their past statements. and so because of the timing of it, and because these are all old statements, the speculation is that it's all coming after these, you know, countries such as the united states sanctioned beijing over shinjon cotton, and

it's something we see often. which is try to try to attack another country's human rights policies and push back, in this case on the biden administration, and u.s. allies by pressuring the companies from those countries. >> speaks to the geopolitical tests we see afoot and manifesting in many ways in the new administration in the first hundred days at least here in the u.s. thank you. another story we're following, the price in crude oil, fresh covid restrictions, reviving worries about a lack of demand the big story, a stranded container ship in the suez canal blocking oil containers, and container ships and l and g tankers. take a look at this satellite image from planet. they put this out yesterday. it gives you a sense of just how bad this situation, this grounding is, and david, i mean, we're talking about one of the biggest container ships in the world, 200,000 tons, based on the reports we have gotten, tug,

so far have unsuccessfully been able to -- not been able to move it, and unwedge it, essentially, but if you were to stand this up this container ship up vertically, it would be taller than the empire state building so much not only crude and l and g moves through the suez canal, but also containers and we have already been seeing all of this global supply chain gridlock we have talked about the issues at the west coast ports here, the impact on freight rates, and this could potentially just keep adding to what's already a difficult scenario when you talk about inventories. >> that is an incredible image. >> isn't it? >> and you just wonder, currents, i know nothing here. >> apparently high winds and sand storms, but it seems like there's still a lot more information trickling out about just how this could happen i would also just note the suez canal, it's more than 100 miles long, but it's pretty narrow, and in its narrowest spot, it's

less than a thousand feet wide >> man, look at that all right, we'll keep an eye on it it's an important story as they continue to work to try to dislodge that giant ship. after the break, regal cinemas is going to reopen after a $3 billion loss last quarter the ceo is going to join us next ou're 55 and up, t- mobile has plans built just for you. switch today and get 2 lines of unlimited and 2 free smartphones. plus you'll now get netflix on us. all this for up to 50% off vs. verizon. it's all included. 2 lines of unlimited for only $70 bucks. and this rate is fixed. you'll pay exactly $70 bucks total. this month and every month. only at t-mobile.

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etf spotlight. ticker xrt, up about 30% this year under a little bit of pressure this morning. rh, though, a big winner in retail this morning. the restoration hardware parent company beating on the top and bottom lines leadership saying they expect current quarter revenue to grow by, get this, at least 50% shares are currently trading up 4 1/2% "squawk on the street" will be right back ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

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the imf plan to provide 650 billion in funds to coronations causing a battle on the hill steve liesman has more on this steve. >> morgan, a literal shouting match breaking out between treasury secretary janet yellen and senator kennedy from louisiana. not over inflation deficits but over special drawing rights. that's a currency of sorts issued by the international monetary fund. the u.s. backing an imf plan issuing sdrs to help poor

countries buy vaccines and restore growth republicans like kennedy argue sdrs are inefficient, all imf states get them, even the rich ones, and the money can go to rogue states like iran and china. here they are arguing whether u.s. taxpayers can foot the bill. >> if the united states does agree to provide sdrs, it will have to issue treasury bills or get to do it but it will -- >> i rest my case. >> i'm sorry, but it will also earn interest on any amounts that it converts on behalf of other countries. and it will be essentially a wash >> but the money will never be paid back. >> and it will take -- there is no money to be paid back it doesn't matter. >> sure it does. >> let's get into this the example of using an sdr, the imt issues sdrs to a country,

saga na, takes those sdrs, exchanging for hard currency like dollars with the u.s. over that time period, ghana does pay an interest to the u.s. in fact, there appears to be very little chance the u.s. would have to issue bonds to cover the request for dollars. as for rogue states, i'm told no one would do an actual hard exchange deal with iran, and china doesn't need additional reserves, so it's clear developing countries need extra help and the world is not going to return to normal until they're also on the mend the question is how to help. the sdrs are an easy tool but inefficient and the politics could complicate putting them to work i don't know where else you're going to see a louisiana senator arguing with a brooklyn born treasury secretary, and her yelling back over sdrs, only on america, only on cnbc. >> that was so fiery, steve, so fiery for such a wonky policy. but to your point in terms of whether sdrs are the right way to go, and i'm starting to do a

deep dive. i know you know so much more about this, some of the push back i've seen is that there could be other ways for the imf and countries to provide a more targeted and conditional assistance including potentially, i think, increasing the size of lending, what are some of the other options or is an sdr really going to be the fastest, simplest way to proceed with this if you want to do something quickly? >> i think your question embeds the complexity of the issue. one of the things that's happening here, morgan is that the administration is trying to do this in a way that doesn't require congressional approval the particular amounts being requested would not require congressional approval they want to avoid that. obviously another way to do this is to increase u.s. foreign aid to these countries, that would be a help as well. there's other ways to do it. they're talking about changing rules that allow these to be more targeted. the world is behind this i will say the trump

administration under secretary mnuchin was against this because of the inefficiency and the rogue state argument rogue state argument doesn't really seem to hold up quite as well as the issue about the inefficiency which you highlighted in your question, morgan. >> steve, thank you. >> my pleasure. regal cinemas is announcing plans to reopen theaters starting april 2nd a new fundraising effort to push it through this reopening phase. cine world ceo mookie joins. the reopening begins, obviously the loss were tremendous you managed through it how long until you actually sort of see yourself hitting profitability again at the company? >> i believe the second half of 2021, we will show already profitability. of course it will not probably cover the losses that we are

having on the first four months of 2021. but things are turning around. we see a great success with the vaccination process in the u.s., in the u.k., being our two big markets. and we're optimistic opening will take some time. it will not go over one day. we will not be positive over one day, but i guess that as we reach july and august, the numbers will be already much much better and on the fourth quarter, once james bond is coming out, the matrix is coming out, and many other movies, i believe that we will be already profitable, and 2022, if there are no big surprises, after the year we had, we need to be careful, so i have to say with no surprises, 2022 is not going to be in a big way different than 2019. i think the lineup there is good, and we have all the

reasons to believe that we will have a very good group. >> well, it's one thing to reopen movie theaters, which is great. it's another thing to get people to feel comfortable going, and to your point, i guess, it's going to take some time. you do believe people will return again, you just said it, to 2019 levels you think behaviors won't have changed. >> yeah, i think it's changed. i think that we don't need to look so far, you know, maybe and if we look at china, with three weeks ago, had the biggest opening movie in one territory ever, from avenger, a chinese movie. if we look at japan, three months ago, the japanese movie had the biggest opening ever in japan. we see that once, as you said, once people feel comfortable, the numbers are coming back. people don't want to stay at home all of us have been at home now for a year people want to go out. people want to see other people. and no one, no one can compe co

the experience of seeing a good movie, surrounding with 2 or 300 people around you, so i think people will go back. people will come and see the movies on the big screen, and we're optimistic, you know >> yeah, mohse, it's morgan, i realize you're posed to do these reopenings in the u.s. in the coming weeks or i guess really next week. meantime, certainly from an investor's standpoint, there's a lot of focus on renewed restrictions or extended restrictions in parts of europe right now. you do have business there, what are you seeing, how concerning is it? >> so i would say like this, on the side of the u.k., and the u.k. is doing amazingly well, almost 30 million people have been vaccinated, i think the u.k., it's announced that we will open 17th of may is on

track. maybe we'll even be allowed to open a bit earlier new york is in a different situation, and we have seven territories in central europe, and their situation is not that good but i believe that with the bigger quantities of vaccinations they're getting now, we will be there something in may, maybe early june and our last but not least, you know, is our hometown. you are well aware that we are doing very well with the vaccinations we need the u.s. to open in order to have new. nobody's producing movies, especially for israel, but we are in a good place there. so i think april is for the u.s., may is the u.k second half of may is probably central europe, and israel will be probably something in the late april or early may. >> over the last year, of course, the relationship between the producers of movies and

those that distribute them has changed dramatically that window that you used to have seems to have disappeared to almost nothing in some cases, and many say it's not going to go back to what it was, how is that going to impact your business long-term >> look, the window we had before was a good one, was a long one, and i think for the world of today, it was even a bit long we were ready to negotiate the window before covid, but there was no really strong initiative. but covid have changed things. we are not going to go back to the window we had. but i think all the students will say, although they're taking all kinds of measures now, through the covid, and until business will come back, but all will agree that the article exclusivity is essential for these reasons, and you cannot put use in movie for $200 million and the article window completely. this is not going to work, the

international market worldwide markets have produced in 2019, $43 billion for this industry, and i guess we can only go up from there in 2022, 2023: this is not an amount that you give up so lightly. 50% of the folks is going to the movie, and to the studio, so i guess that we will have a decent window because it is of the interest, not only of us, it's the interest of the studios as well, and i think one of the phenomenons in this business is -- and it's been like this for years, that the more the movie doing in the cinemas, the bigger the income from the markets, not only dvd, and paid tv and streaming or whatever, me

parks. >> the ceo of cineworld. moving on taking a look at companies in the ev space, quantum space, romeo power, all just getting crushed this week of course. gol goldman sacks, that could drive battery prices up about 18%, ghbatrt"ilbehe see wl rit ck

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i'm rahel solomon. florida is joining the list of states expanding eligibility to get a covid vaccine. starting monday, anyone 40 and older will be eligible anyone 18 and older. a second wave of infections is

hitting india with cases hitting a five-month high. that is reportedly prompting the country to put a hold on major exports of the astrazeneca shot, made by the institute of india and that will hit the international covax programs to get shots to the rest of the world. the 121 day olympic torch relay is under way in japan. people are being urged not to get too close to each other as they watch from the side of the road and loud cheering is discouraged. capital own diversity holdings going public on the nasdaq today through good old fashioned ipo. under the ticker dsey, our leslie picker joins us now she has the ceo and it's a cnbc exclusive. leslie. >> yes, paul weeland joins us, diversity ceo. thank you so much for joining us on the day of your big debut i first want to get into your

reasons behind going public. pricing came in a bit weaker than expected. $15 below the 18 to $21 range. your competitor, e colab traded reasonably well over the course of your road show. can you gif us a sense of what went on in discussions between yourself and your investors. what happened here, why go public now >> hi, look, we're, you know wewe think this is a great time for us to go public. we've got a great story. we're in a market that's growing really strongly over 3%. we're taking market share. we have a great range of plans to grow our margins, and it's a really fragmented market that means we can do a lot of m and a as well. we think we've got a great story. and, you know, therefore it's a good time for us to come we looked around at other options. the ipo seemed like the best one for us it's just fantastic to be in the market today we've got a great range of new shareholders we feel really good about that and here we are, it's a great day for diversity.

>> speaking of timing, can you explain exactly how your business was impacted by covid you have on one hand, you know, we hear cleaning and hygiene, which is the bulk of what your company does, and we think, okay, everyone is going to be doing more of that than they did in the last year, and your key customer set is that in the food and beverage category, which has been adversely affected by shut downs, and you know, the future looks a bit more uncertain on that front what was the net impact to your business, and what are you looking at moving forward? >> yeah, you're exactly right. we actually had a great year last year. we grew our top line at over 2%, and not too many did that. but you're right, you know, some of our end markets in hospitality and food service of course really impacted by the lock downs that we saw all around the world, so it's great to see that starting to come back in certain geographies. that obviously took us down a little bit it was more than offset by our

infection prevention business. we have a fantastic set of products, market leading products, and that allowed us to really work with our customers to bring those products, right across hospitals, schools, really anywhere that, you know, people are engaging, and that allowed us to grow really nicely and we look forward to those products selling more and more and more, and we started in north america with these products, and we now have them available right around the world, we think this is going to be a dynamic growth lead for us over the next two or three years. >> is it fair to say, then, that as more and nmore restaurants open up, as they have more capacity for indoor dining and so forth, as the world becomes more vaccinated that demand for cleaning supplies will become much higher than perhaps it was in 2020. and also do you have the supply chain to support that? i mean, when we think of cleaning supplies in a pandemic, we think of clorox and purell

which struggled as there was a sudden burst of demand are you prepared to handle that? >> yeah, look, we certainly think that as the world opens up, you know, so are our business in restaurants and hospitality is going to get better and better and stronger, and we saw that last year as we moved from the second quarter into the third quarter a lot of the lock down started to ease and our business in those sectors started to bounce back really quickly. we think that's what we're going to see again as we come out of lock down. you're exactly right about supply chain as well it's absolutely critical we've got to get our products and services in front of our customers. we actually reacted very quickly last year when the pandemic broke. we had to set up new sources of supply we brought on new suppliers. we actually bought a business to help our wipes manufacturing in north america as well. so, you know, we weren't perfect, but i think we fared

really well compared to the competitors, and now we feel great about how we have managed to expand our capacity, and we see going forward that we're really going to be able to ramp up and meet our customers' demands, so it's a real positive for us looking forward. >> phil, it's morgan, sticking with the supply chain theme here we saw those historic storms, those winter storms in the gulf and the other parts of the country last month, and the impact that's having, at least in the near term on chemical manufacturing, but even before that, we were seeing price jumps and shortages in things like chlorine what are you experiencing, what does that mean in terms of costs for you, and potential pricing for your customers >> yes, it's really not helpful, is it, having a pandemic, and then those extreme winter storms on top of each other, and you're absolutely right we're seeing some upward pressure on costs. we have been working really hard, you know, with our suppliers to manage that and also with our customers.

i think customers understand that when you have something like this that affects input costs across the market that, you know, we need to pass that on and share that price increase, and that's what we have been doing. focusing on communicating really clearly with our customers, understanding what your suppliers are seeing, and, you know, it's working really well actually at the moment >> phil, a big trend in the cleaning world these days is that of sustainability ensuring that chemicals aren't harmful to the environment they're not going to be harmful for anyone who ingests them in the air or elsewhere you know, what are you doing on that front what are clients asking for with regard to sustainability right now? >> yeah, it's a trend, and i think it's only going to accelerate, so we've got a range of plant based solutions, for example, we have other products that, you know, have really high efficacy, but break down into water and oxygen, so much less harmful. our customers in general are saying that esg is more and nor

important all the time, so we're also helping our customers to reduce the amount of water they use, to reduce the amount of energy they use. and our solutions also support the reduction of packaging so you know, this topic is not going anywhere it's going to become more intense. our customers wantit, and we'r able to provide a range of solutions to help them meet their targets. >> solutions on solutions. we appreciate it, phil phil wieland, thank you very much for joining us, the diversity ceo on the company's debut day. david. >> thank you, leslie for bringing it to tus keeping an eye on shares of viacom, they're under pressure, nothing like the last couple of days where the stock was down 30% in two sessions. we'll discuss on "squawk on the street" when we come back. o hir. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home.

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shares of viacom are down again, though not nearly as much as they have been over the last two trading sessions as we have discussed the stock moved up and up and up over these last couple of months, topping out at huge gains well above what was 100 and some-odd many percent you can see now only 82% year to date it was over $100, the company did announce its plan to have an equity offering, as much as $2 billion of common, another billion of a convert that was mandatory convert, so treated as equity for purposes of the balance sheet, and i mean, it was the 20 million share offering at 85 perhaps that also gave people an opportunity to look at it yet again it did result in a significant decline. if you bought that offering at 85, which at the time appeared to be something of a discount, of course given where the stock had been trading for a bit of

time, you probably were feeling okay and now you're not happy at all, with the underwriters there. this morning, a downgrade from amoffettnathanson, one day lay, they go to 50 percent price target, talking about the multiples, the transition to the direct-to-consumer world and what they call haves and have notes, and that downgrade. i think we have a brief portion of it that sort of explains. they took advantage of the recent run selling roughly 3 billion worth of stock converts, should have. they were at elevated levels, they did clean up the balance sheet to a certain extent. it allows them to accelerate their investment in streaming. it's going to be very expensive. they have increased worries, and of course this transition that we have been talking about from the good old fashioned linear universe where you've got everybody paying a fee if they don't watch you and advertising to direct to consumer world,

while it's a significant shift, we're still trying to fully understand the real profitability of that universe is going to look like, morgan, over time, right now a lot of investors just valuing it on future revenues, but for viacom, it's going to be important, and one thing we do know, it costs a lot of money, it just costs a lot of money there's a give up in terms of things you might have licensed that you keep for your platform, and producing the volumes that are needed to keep people's eyeballs attuned to your direct-to-consumer platform, it's expensive. >> it's expensive and just looking at all the subscriptions that are out there, how many are consumers actually going to take on i'll tell you, we're probably going to take on one ourself, now that cbs sports and paramount are acquiring the rights, roma, that's the team in my house, italian soccer. >> there you go. they can add one more person to the role. >> content is king all right, right after this, one web with a successful launch of

36 satellites into low earth orbit overnight, the ceo joins us next to discuss the company's goal of global connectivity. stay with us this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it. voya. be confident to and through retirement. if you're 55 and up, t- mobile has plans built just for you. switch today and get 2 lines of unlimited and 2 free smartphones. plus you'll now get netflix on us. all this for up to 50% off vs. verizon. it's all included. 2 lines of unlimited for only $70 bucks. and this rate is fixed. you'll pay exactly $70 bucks total. this month and every month. only at t-mobile. - [narrator] grubhub perks give you deals on all the food that makes you boogie. (upbeat music)

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communications successfully launched and contacted with an 36 satellites bringing interconstellation to 146 sets joining us, neil, thanks for being with us. late night i suspect you haven't slept yet. curious. the service you're getting ready to roll out and offer once you get these additional three launches happening over the coming months what is the service going to look like what is it pitch you're making to enterprises and governments >> the summit, pitched simple. providing activity where there is no fiber. approach things, multiple opportunities to go directly telcos, local sp providers and existing in the industries know best how to price it and we're

able to find a range of solutions. kinetic and emergency backup amongst other things. >> how many customers have you already signed on? >> we are in the process, a deep pipeline seeing announcements shortly on this. >> talk about competitive landscape whether spacex with starlink, and planning its own constellation, meridian, i realize everybody's targeting something a little different, but given how crowded low earth orbit is poised to become over the coming years, how would you assess that competitive landscape and what do you see as your biggest rival can everybody survive? >> we think the market is very large, and in many spaces, there are 3 billion people interconnect and the planet. about half of them are unhappy with quality of their service.

the market opportunity is very large, and that's, of course, before you start trying to connect machines my perspective is there will be a number of players end up being successful we will see who they are, but the market is certainly large enough to sustain of number of players. our approach, i mentioned, would, with existing industry and ecosystem ran than seek to disengage them. >> one owned by not only the uk government emerging from bankruptcy last year and bartee global earlier in the month had ceos of major telcos on to talk about the record 5g auction and rollout of that infrastructure here in the u.s. talking about the next generation connectivity technologies, how does satellite platers such as yours s fit into that larger picture?

>> our goal, help our customers be more spotsport -- supportive connecting with their customers. we think there's a big opportunity there and our technology plays directly into that. >> a number of spacs, space companying going public, looking to go public via spac. the seventh this morning, redwire. i realized you completed in recent months another round of funding. the company emerged from bankruptcy late last year. is this something you planned to do as well >> it's an option. i would say we're very dconfiden in or progress on funding. and this giving investors confidence and last night was a great example of that. >> finally, neil, your financial services and communications guy over 20 years at thomson

reuters, why make the move to space? >> first of all, i think the mission here is very important i think what we're trying to do is a benefit and i see a giant market opportunity and operation's opportunity. final point i'd make is that, you know, i do like technology this is a technology to scale. >> terms where you're manufacturing satellites, is that going to continue jie realize you have a location in europe, but are you going to continue to do that on the florida space coast as well and what does that mean for hiring >> yeah. we expect to continue that we think this facility we have in florida is one of the, only really, two mass productive factories in the world and think there's a big opportunity for that going forward, and also we expect to manufacture satellites in the uk as well. >> neil masterson, thank for joining us congratulations on a successful launch. >> thank you thanks for having me. coming up on "squawk alley,"

big tech testifies on capitol hill we'll tell you what to expect. plus, linkedin founder lee hoffman joins us on the show that our starts in a few minutes. stay with us.

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it's 11:00 a.m. on capitol hill and 11:00 a.m. on wall street and "squawk alley" is live ♪ one way or another i'm going to find ya and get ya, get ya, get ya ♪ one way or another ♪ get cha, get cha, get cha ♪ one way or another i'm going to see ya ♪ i'm going to make meet ya, meet ya one day ♪ happy thursday welcome to "squawk alley. i'm jon fortt. ahead, tech, power and politics. you can't handle the truth political theater doing their best jack nicholson impressions. in the hot seat again as lawmakers from either side of the aisle accuse democrats of moderating content too much or not enough and amazo