>> let's all think about it and come back and have an inflation debate on monday what else is going on? >> you're right. on everybody's list. whether there is any risk to this market, inflation this is something we will be talking about. >> cool. >> andrew and becky, bye thanks, rick and steve make sure you join us next week. "squawk on the street" is next good friday morning, welcome to "squawk on the street," i'm carl quintanilla with david faber and mike santoli cramer has the morning off dow and s&p looking for the third straight weekly gain futures are a bit mixed this morning. nasdaq looking, lagging as yields take a step higher. ppi runs hot, up 4.2 year on year after you heard rick talk about after the weird delay in the data this morning. the road map begins with boeing's max headache and the

company warning airliners about a potential electric issue on some of the jets >> and vote counting resuming this hour. but the amazon workers yoon, well, they appear to be facing a significant uphill battle. and the reopening trade. we will talk with the ceo of snap-on about that company's post-covid recovery. a lot to get to this morning, in cramer's absence i guess mike, maybe we do start with some of the inflation number, obviously base effects are making the year on year data confusing for many, but 4.2, will get your attention, 1% month on month will get your attention, at the wholesale level, i guess, the question will be at what point does it start getting passed down. >> and the statistical read, and everybody braced for so the hol hot numbers and also anecdotally everybody focused on lumber and bottleneck trade, and what is happening in met sol there is no price that there is a lot of up ward pressure on the prices at

the wholesale level. it's the case for a while now. the question is in the context of fed official after fed official coming out and telling everybody, we don't care about this kind of what's supposed to be a near-term bump in inflation, do not focus on it, because we're not focused on it, and that challenges the market's ability to kind of think about two things at once on two separatetracks and again, this is also happening with treasury yields having come back, a fair bit, in the last several day, and people kind of taking comfort in more of that stability quality trade. not so much the cyclical trade so i think it's a little noisy, at this point. i don't know if anyone is really panicking over it, but it does show you that the market is probably going to have to get over these potential scares or these little interruptions of the kind of gentle guide path that we've been on since the macro. >> david, that sort of ties into what powell said at this imf panel yesterday, on employment

and that is, you know, 900,000 number on jobs is great but we want to see a string of these things before we start communicating that policy is going to change. >> right which is why they continue to say policy will not change and make it very clear, and say, you know, pay no attention here, mike, you can do that, but the question is whether the bond market will listen you mentioned of course, and we take a look at that 10-year yield right now, having moved down from those highs that we saw, what was the correlation between, and i don't even know, what, above 1.7, or wherever we may have been, and the performance of the s&p mike, so we can sort of remind our viewers in terms of that relationship. >> what's interesting is the s&p as a whole has not really shown a lot of reaction to either that run to highs in the 10-year yield or the pullback. it's been about what kinds of stocks have worked in the s&p. so this yield backup that we got from mid 1.7s, down to closer to 1.6 have coincided with people rediscovering, you know, apple and microsoft yesterday were

both up like a percent and a half, for no reason. those are kind of the bond proxies when yields calm down and people are looking for quality and defense as opposed to cyclical acceleration type plays and i think that rotation has been almost perfectly scripted and you know, you don't know if you can expect it to continue that way, but the overall s&p has just been kind of grinding higher, even as most stocks have pulled back. if you look at the kind of pure reopening type plays, they pulled back a fair bit in the last couple of weeks and the overall market is not really had a hiccup so this whole march higher in yield is something, carl, that we keep saying, the market will have to figureout what its own pain threshold is on that, in aggregate, it doesn't seem to be 1.7 necessarily, but at some point along the way, it probably uses that as an excuse to have a little bit of a gut check. >> yes, interesting, david, your question about what stocks are going to work from here on out, jpm's got a pretty good note,

saying that march might have marked the end of the momentum unwind, we agre the bulk of the momentum sell-off is done, but we do believe value has more room to run, and clearly, every indication that we get, and we'll talk some more this morning about the reopening signals that we're getting at disneyland, and new york city, and hotels, wynn, last night, maybe that does get you a little more of a kick in those value reopening names. >> yes, the old value name, of course, that continued debate as to whether they will ever see a sort of resurgence beyond what we've seen in growth i mean i would note that we are up over 9%, a little more, roughly 3.5 months into the year on the s&p, and the nasdaq is lagging, so those growth name, some of them are still lagging, mike but still much unclear, in terms of whether that value trade can really sustain itself. >> right, it's still a show me situation in terms of how much ground has already been made up. what's really i found interesting about the jpmorgan

note, too, is just the way you can kind of slice these style categories, and what you're actually betting on when you're betting on something that we call momentum or we call value, and one of the issues is that momentum, as it gets measured and played, in the market, became very much like value and cyclicals, because those are the stocks that had raced ahead and they automatically start qualifying as momentum and large cap nasdaq stocks lost their status as momentum plays, in these factor breakdowns, and so you've almost kind of liberated the market from that, you know, growth is nasdaq, faang, and value is energy and financials and nothing else and momentum is somewhere kind of in flux in between. so part of it is tail wagging the dog and how are we going to describe these things, but it sort of does tell you why you've gotten this pickup in the nasdaq gains recently, because they were not overextended, they represent a little more defensive in quality and lagged and you can feel like you're not buying them at the high, and in

a ways, they're almost, carl, orphaned growth. yes, they're growth but not necessarily impressive this year on earnings growth, but over the longer term, maybe they will be. >> yeah, that's a great point, mike it really is z someone could easily argue that carnival is a momentum stob. upgrade, upgrade of 40 as they see sailing in mid to weight summer and speaking of wynn, talking about how they will manage their workers and business trending bookings in vegas. this is what they said on "mad money" last night. >> las vegas needs air lift to get back to 2019 but what we've seen driving traffic is up over 2019 this past month our call volumes are back to 2019 levels. conventions, we booked five tech conventions for later this year. just last week >> david, i thought it was interesting how we're seeing

some of these companies talk about testing and vaccine of their own employees. in wynn's case, they're going to ask you to get the vaccine they won't make you get the vaccine. and if you don't, you will have to get tested. >> yes, it's going to be very interesting to see over the next few months how that all shakes out in terms of what companies are going to ask their employee, particularly those that are be withing guests on a regular basis and you want people to feel at ease as much as possible v vegas is positive, they seem to be quite positive on the return of business. but we will follow this morning as well, some of the florida suing the cdc, on behalf of cruise ships, companies, because this question continues to be, what will be fully allowed, what is mandated in terms of employee, and even if you say all of our employees have to be vaccinated, is the cdc going to

say okay, you're good to go? >> yeah, i wish jim were here, mike, because yesterday, on this very show, he thought that there would be some legal action between the cruise lines and the cdc. i don't know if he counted on the governor and the state getting involved, which by the way, raises additional questions about what kind of standing florida has in a case like this, but clearly, that showdown has gotten spicier. >> without a doubt it remains a very large conspicuous question as to why it seems to be very specific treatment of cruise lines. what is interesting, you mentioned that upgrade that carnival got today, carl, they're kind of assuming what, mid to late summer, that kind of kruszing comes back. they're not saying they have any kind of an edge in deciding when approvals will come down, but that's the way it seems like things are packing by the way, too, you know, this price target that goes out there, $40 for carnival is based

on 14 times 2023 earnings for carnival because obviously, it's a long road back. and they've issued a ton of stock and all the rest of it and this was a stock that doesn't necessarily have a huge premium, carl, even when things were kind of quiet and great so it tells you what have to do to stretch to see much upside on a stock like this. >> guy, i want it get to sort of the setup regarding industrials this morning because we got upgrades of honeywell, upgrades of raytheon, price target increase on ge but boeing is going to fly in the face of that on the news of the max. let's get to phil lebeau. >> we have a little more information regarding what is happening with the boeing 737 max. and it basically, let me reset the table in terms of what boeing announced this morning. it is telling 16 customers, 16 airlines, that they should temporarily ground some 737

maxes. what maxs are we talking about, those that have been delivered since the plane was ungrounded by the faa last november what has happened is a change in the production has indicated that there could be a potential electrical issue in the power backup control unit. and as a result, boeing is telling its customers, look, shut these planes down, until you can check it out to make sure that this production issue, and my understanding is it has to do with how something is attached or fastened within the backup power control unit, that it is properly attached, and it is up to the way that it should be, in terms of how we want this unit to be functioning so as a result, you are having these airlines temporarily ground these maxes, to do these check, which could take anywhere from a few hours to a couple of days, southwest issuing a statement this morning, saying that it had pulled 30 737 max 8s

from its schedule, they will be able to replace those planes in the schedule with backup aircraft, so the impact on the schedule today and tomorrow will be limited at southwest, american airlines pulling 17 737 maxs from its schedule so it can do the check as well by the way, the faa has just issued a statement saying that it is aware of what boeing has issued, and it is working with boeing, and with airlines to make sure that the process is followed but again, what you're looking at here is a temporary grounding of some 737 max jet, not all of them, but some of them, the ones that have been delivered post-grounding in november, and this grounding, this temporary grounding, if you will, carl, it's expected to last again anywhere from a few hours to a couple of days carl, back to you. >> phil, thank you >> i'll take it, phil.

>> our apologies it reminds me the many times gary kelly has been on our air i look back, july 2019, came on "squawk on the street" and said i want your viewers to understand we have one issue and it's the max and then you had calhoun come on, some months later saying we let them down. so that relationship, at least in the last couple of years, has been fraught. >> without a doubt and it is still under some pressure one would expect as things come back to some level of normalcy. listen, you know, when i think of boeing at this point, in particular, we're only a couple of weeks away from the anniversary of the $25 billion worth of bonds that the company sold, it was a seminal moment, if you remember of course, because it did mean that the company could potentially, was not going to need to raise further funds at that point, and there was a lot of concern about boeing, and it did show the health of the capital markets in coming to the aid of so many companies that desperately needed it. so we'll be, i think it was the

30th of april, last year, 25 billion for boeing, obviously a different part of this overall story. another story we've been watching closely is amazon workers at an alabama warehouse, they appear to be on the way of reje rejecting unionization with about half of the 3200 ballots counted. so far the tally shows workers voting against the union two to one but hundreds of contested ballots being challenged by both sides. carl, an important test here as you might imagine, people lining up on both sides of the political spectrum in terms of union versus not i would only add, amazon itself and something that we have mentioned many times, haven't focused on quite enough. half a million employees in 2020 it's still such a staggering number of people it's almost hard to process. >> yes, i mean there's some data this week, david, that large

companies in this country actually added net jobs in the course of the pandemic a net addition of jobs at large companies. we obviously know they took share from mom and pops. but a lot of that, mike, would not have been possible without one company, and that's amazon >> and i guess probably other essential retailers as well. it's an amazing economic course. and david, doesn't it completely just remind you of the life cycle of walmart in terms of the skirmishes about unionization, treatment of worker, whether they're putting small companies out of business, and the whole thing, and meanwhile, it remains a juggernaut, winning market share along the way. what is also interesting about this, as you know, as kind of consequential as tunion vote might be longer term one way or the other is the pressure that is building outside of any kind of labor market, for $15 minimum and basically the upward pressure on wages already even

won w without the unionization coming. >> take a break here and we will look at the polls mentioned, including the upgrades of raytheon and honeywell. ge, ubs goes to 17 calls on the airlines as well. 'rba i fm e x. wee ckn a minute when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere,

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it's another friday and an

opportunity for us to take a look at spacs, something that we had done quite frequently of course, during the course of the frenzy in spac filings, offerings, and deals that has slowed a bit, but there's no doubt that they continue to capture the imagination of certain investors, and certain have contributed to significant fee generation from the investment bank, both from the underwriting ipo side and from the merger side, and that continues to be the case the biggest news though, perhaps came recently, from the s.e.c., which as we all discussed, certainly is taking a closer look at spacs. a number of different perspectives one being of course, the fees, and the responsibility of the sponsors, and something we've talked about a great deal, the projections that come along with these offerings, because remember, these are projections in a merger document, not in an s-1, and therefore, they can look at things and say things

that you can't typically do as a straight ipo remember the ipo has for the spac and then the merger is done what does the s.e.c. say if we do not treat the de-spac transaction as the real ipo, our attention may be focused on the wrong place, and potentially problematic forward-looking information may be disseminated without appropriate safeguards so it goes to some of the things that we made light of, in the case of well, we're going to trade at eight times '26 revenues or 15 times '26 ebitda. these are dates that are still quite far out. these are companies that are oftentimes relatively speculative in nature. but what had been a fire hose of offerings has slowed down to more of a garden hose. it's not a trickle by any means but certainly not what it was. take a look at some of the numbers and some of the things we've seen in acooling market. ipos have falling below the $10 value. we have deal announcements that have been slowing down of course

and even our own spac index that we track here, where pre-deal is down 18%, and let's call it in the last six or so weeks and you can take a look at the numbers back below 10. five days after their ipo, i think we have that chart as well it's a pretty significant number and the numbers themselves are still quite significant as well. as you take a look at the spac 50 there you've got 432 that are still out there looking for a deal there's by the way the number there, trading below 10. and you've got 240 that have filed but are not yet public you've got 304 ipo has it have already taken place this year. just imagine that number, and any other year of course, and they have raised almost $100 billion. so we're still watching it all very closely seven spac ipos this week. 11 filed to go public. but i have also noticed, guys, interestingly, yesterday, we had

a spac come with no pipe i haven't seen that before today, there are some filings where the trust value is $10.10. where the warrants are exercised at 15. not 11.50. so there are things being done to try to change the nature of what they look like. perhaps making them a bit more enticing to investors because things might have certainly slowed down. not stopped. but slowed down. >> interesting you mentioned how much has been raised, almost 100 billion this year, 300, that was more than all of last year year to date in 2021, so i wonder if it's going to be the first quarter of 2021 is going to be this vintage of spacs that will be a test case of how reliant the whole model was on the projections i once did, i just went back to the most recent 40 spacs and talking about a few of them, average annual growth rate of like 100% a year, in revenues,

for five years so you know, how much of this game, carl has been dependent on exactly those projections that are now under scrutiny >> yes, and pretty nice pipeline of ipo stories on the tape today, including impossible, we'll take a break here. final day of the trading week in a moment hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror?

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the recovero though remains unleave and incomplete and the unploimt remployment rate in the bottom quartile is 28%, 8.5 million people out of work and the unevenness is a very serious issue. viruss are no respecters of borders. and until the world really is vaccinated, we're all going to be at risk of new new tations and we won't be able to really resume activity with confidence all around the world >> that's the fed chair yesterday, on the recovery at yesterday's virtual event, presented by the imf, moderated by our own sara eisen. mike, interesting comments from powell talking about the unevenness of the recovery, but also this notion of when do you really know the pandemic is not going to come back to bite you again, bullard had the same comments earlier and i saw a

piece on the tape earlier that herd immunity globally is probably not something we're going to get for 22 months. >> right and with the fed that is already very clear about saying it's going to err on the side of staying more easy than not and wait for the actual economic data and the full employment evidence, and even inflation running hot for a while, before they try to anticipate it. it's not a proactive fed anymore. they won't assume the end of the pandemic or mission accomplished with the economic recovery until it is right in front of us >> there's the opening bell, guys, final trading day of the week as we see breadth fill in, a look at the nyse and the nasdaq as well we did talk about briefly some of these upgrades in the industrial space, david. rtx getting an upgrade honeywell as well. the general notion that some of these industrials are really laser poised for the exact part of the economy that is coming

back to life >> yeah, and one wonders whether, you know, and how they will deal with this pickup potentially in inflation, back to the powell conversation as well you know, it's also, it also costs a lot these days, mike, to transport goods, and something else that seems to be adding to inflation fears, as you take a look at some of the dow gainers right now, honeywell, as carl just said, one of those names that is doing quite well, best performer so far in the first minute here in the dow, but these rising transportation costs, mike, i don't know how that figures into it we've all talked about you know, the costs that keep going up in terms of getting things from the ports, and through there but spiking prices for shipping and most commodity prices as well, they continue to move higher interesting. >> it's definitely kind of the high friction industrial economy

right now. everything going on, supply chain, i think the bull case as it's laid out, for example, with honeywell, firstly mostly capital goods and you talk about ppi going up a lot, these are the guys collecting a lot of those prices on things that are inputs to other companies. and what's also interesting, is that both of those upgrades of honeywell refer to mid to late cycle dynamics now, these phases can last a couple three years but it is a good reminder that, as much as we're thinking we're less than a year off of the low of a flash recession, it's already looking like there's been so much progress in terms of the comeback in some industrial sector, manufacturing, what ism looks like that all of a sudden we're talking about mid cycle late cycle and maybe six or eight months away from the whole conversation saying wow, tough comps next year for a lot of earnings in terms of growth and boy, it's going to be some fiscal drive because we're probably not going to get another $3 trillion in spendable

fiscal help. and so it happens fast, potentially, carl. >> yes, and by the way, also ubs, david, i wondered what you thought, they go to $17. reiterated buy we expect the turn-around to result in a simpler industrial company with high single digit fcf to sales they say their earlier piece, that says, is it a turn-around master class or is it a dead cat bounce and after that outlook meeting which you reported on earlier, they believe that the former is in fact true given the evidence. >> interesting yeah, i don't have a great deal to add on that, carl you know, it's funny, speaking of ubs, and i think of cs right now, it's got downgraded today, very different area, of course, but we're still, still dealing with the outcoming of the archegos craziness, and the impact on any number of these

companies, but in particular, the stock which was downgraded, csm another 3%, one does wonder whether a deal with ubs one day might occur there, given all of problems that that company continues to have in terms of managing risk and not getting out of its own way and of course, losing 4.7 billion largely, it would go together fairly well, ubs and credit suisse, one might imagine, and it is not as though it hasn't been thought of in the past but i do know there are quite a few employees there getting frustrated, doing well with stocks and another area of the company not doing well at all. >> you may wonder, does it wonder, with the politics, whether you have one or two mega banks or not and also the downgrade of credit suisse coming from morgan stanley, you know, obviously different parts of both firms,

and all. that but it's a little bit to see that happening and to see the bigger picture, i think what's fascinating is the market kind of took the archegos liquidation and wondered if there were other shoes to drop and looked at the ramifications on how this is filtering through different stock prices and it just served as another one of the excuses for a little 3 to 5% pullback in the s&p. people stopped, looked around and maybe no other bodies will come up to the surface and we're okay here. it has happened each of the last three months you had the arc complex of stocks and the hiyper growth tye things fall apart and prior to that gamestop, and melvin capital. does that mean we're getting open to things and a nice little risk an tight that we're going along and kind of making a dent along the way in the resilience of the market? i think those are the questions that we will have to wait for the next few months to answer.

>> yes, mike, i did want to get you on two questions this morning, one is this b of a report on flow >> yes. >> that flows into stocks, in the past five months, have exceeded the prior 12 years. reuter has a good piece on that. that's one question. the other question from me is when the vix has been in this kind of collapse that we've seen the last couple of days below 17 yesterday, why does the market feel i guess defensive on a relative basis when you got that thing going down so much. >> in terms of flows, i think it accentuates that this is a very, very well embraced bull market and retail institutional all around, equity allocations are very full. now, one of the big talking points of the bulls in prior years was that hey, nobody really believes this, net flows into equity, have been very weak, they've not kept pace with the bull market, so that's bullish, so you have this marginal imagined buyer that

will throw money at it i think that's going away. a different type of phase where you build toward a more exuberant bull market and people feel as if they want to chase it and i don't think you can argue anymore that people are underexposed to stock. the risk appetite was pretty much near a high, recently, institutional as well as retail. in terms of a vix, i mean i think it does tell you that it's a more normalizing market, a slower-paced market. one of the reasons the vix is going down is because of the rotation you see one group of stocks like growth go up on a day when value corrects and that sort of suppresses volatility at the s&p level, and that actions as a drag on vix. you would argue that if above 20 for a year is a long stretch to go, at an historically high level, for vix and some point, it gets too low and complacent, probably 16 is not that level >> lots of people wondered if it would ever get below 20 and then it finally did >> yes. >> so 10-year, 1.675, and obviously equity is doing what

they're doing at the open. let's get to bob pisani. hey, bob. >> good morning, guys. happy friday this is a very modest reaction to a higher ppi. remember what happened to stocks in february, particularly tech stock, really got slammed on concerns about higher inflation, higher rates that's not happening really today. many traders feel that worrying about inflation is not a big money-making move right now. let's take a look at the sectors. you would think on a day like today, rates up, so the reflation trade, the banks would do better, energy would do better, industrials would do better and tech would be down in a netable way. well, tech is down but not much at all it's a very, very modest reaction take a look at some of the mega cap tech names here today. and you can see, i mean all of them started fractionally to the down side, the apples and the microsofts and the kla tencorp, but a modest reaction to a rise in rates in what seem to be higher inflation numbers

high growth stocks as well, cathie woods stocks, whatever you want to call them and fairly modest reaction in the overall marks to these stocks, again, they had a nice run in the later part of this week here meantime, big start to earnings next week. on the 14th. with jpmorgan starting and these are quite strong numbers here these are big changes from january. first quarter numbers expected to be up 24% second quarter numbers up 54%. again, these numbers have been going up for the past couple of months there's a couple of big issues, including what we saw today that's going to hit. number one of course is concerns about higher rates and higher inflation. and that is already starting to come through in terms of concerns about lower margins due to higher costs. we have already seen kimberly clark and smucker's raise prices on higher costs of the food companies have already been reporting higher costs, the question of course is this transitory and finally, a great question, carl, to discuss here is, last year, we didn't get much

guidance and this year, they're expecting a lot more guidance but some people are saying you know, ceos ought to cease the opportunity to specifically provide less numeric guidance. this has been debated for years, carl a lot of ceos don't like to be pinned down like this and a lot are saying maybe this is an opportunity to reset the expectations around guidance carl, back to you. >> bob pisani, thank you. what a morning rick santelli has had. let's get to rick. >> absolutely, carl. you know, 42 years i've been in this business, sometimes as a trader but lately, in the last 20-plus, on cnbc, trying to share some of the market news with viewers and i've never seen anything like this, and very quickly, let's just put a face on all of the numbers, all in a row, up 1% on headlines, second largest ever, up 0.3, ex-food and energy, second highest ever, if you look at the trade number, up 0.6, second highest number,

year over year headline, the second highest number ever and the last two both up 3.1s one of course is ex-food and energy year over year, and ex-food and energy with trade year over year, both of those are tie the for the all-time high so they were hot and bob's right the reaction was, look at the 24-hour chart of 10s and realize that 1.67 yield, up 5 on the day, we're down 5 on the week, so it's 5 versus 5, and most of the upside that we're experiencing now happened around 3:00 in the morning eastern when the european markets opened. look at the two-day of tens, you really want to touch it in deference to the high yields and we snapped back from the low 1.60s and yesterday was a two-week low yield close and if we look at this from the weekly perspective, would he can clearly see it has been mostly a drift down week, but boy, we snapped back fast. foreign exchange, the two-day of the dollar index, once again just like treasuries, you want to watch it in light of yesterday's highs, the dollar is trying to come back a bit, it is

having a down week, and finally, one of the reasons it's having a down week is because the euro currency has a strong week this is the end of march, look at the euro currency what a snapback from under 1.18. carl, back to you. >> all right, rick, thank you very much. rick santelli. when we come back, riding the recovery with shares of snap-on riding an all-time high. the ceo will joins us a moment no one likes to choose between safe or sporty. modern or reliable. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure. ♪ ♪ ♪ from banking to manufacturing, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. ♪ ♪ ♪

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all time high, the company benefitting from inflows into the industrial sector and a broader reopening of the economy. joining us this morning is snap-on's chairman and ceo nick pinchuk. thanks for joining us. >> carl, how are you doing >> doing great and so grateful to talk to you, because i mean what a time for your business, you got the economy reopening, you got the ism manufacturing number, near a four-decade high, and yet all of these headlines about supply chain, and labor, and the ppi number running hot, i wonder how you're processing it.

>> look, supply chain, you know, ppi, it's always something this is how they pay managers to manage over that, it's a great time, you know, really, people say this stock's up, i'm saying if they told me the to stock is going to be up, i would say well, sherlock, we saw great resilience, a a v-type recovery, with this kind of industry, the industrial essentials, accommodating and coming up. and demonstrating the kind of resilience in the industry, dividends every quarter from 1939 and never reducing it the other thing about it is generally what holds our growth is our capability to take advantage, you know, to sell more through those, like a knot hole, and in the third and fourth quarter we demonstrated that through the use of social media, with some of those assisting that direct sale, we expanded that. and if you think about it, people are going to drive cars more after the pandemic than before because we don't like shared transportation. so things are looking up and our stock actually looks good i'm looking for more, because

our multiples still don't compare to our, less than our comparables. >> right so if the headache for you is not necessarily a production supply chain issue, or a cost issue, or a labor issue, is it a tax issue? are you worried about the conversation that has heated up this week? >> the thing is that the taxes, i joe you had jay timmons on yesterday, he knows, he was talking about taxes and infrastructure and the idea about infrastructure, we somewhat like a peegs of the building and talking about upscaling the american work force and the essential workers are the life blood of our nation, you know, they kept us alive, kept us from disintegrating during this covid crisis and the idea of training them and getting more into that sector, it will reduce inequality and make americans prosper. but corporate taxes,

asymmetrically hit manufacturing, snap-on isn't like this because we're both a manufacturer and a distributor, so we can do things, but if you're a manufacturer, you're competing with offshore people who don't have the same cost base so basically, you're under, if your cost base goes up, and your tax rate now is not competitive with the oec, then that's difficult. i love it, when you're on programs, and people are on programs and they say hey, manufacturers, the companies got to pay their fair share? what's the definition of the fair share >> i would say the definition is above the, where it is now and distribution will be able to price because they have no offshore competition so taxing corporations asymmetrically burdens manufacturers. i think the number, look, what's going to happen is you're going to see a shift of jobs from the high-paying jobs to service jobs if you like service jobs, vote

for tax increases for corporations >> nick, you mentioned it is intuitive. people will drive more once they get out and about and vaccinated what else in terms of the bigger picture factors are important for your business? you are seeing new car sales clicking to a record annual pace but used car pricing surge so obviously, tremendous demand for vehicles how does that translate into either miles driven or the need for service? >> look, new car sales don't make too much difference to us what makes a difference is change in the car parts. so what is happening is the change in the technologies this has kept going and it's driving our business so this will work pretty well. you know, i think people worry about electric vehicle, if the president tomorrow said we're going to go to electric vehicle, i'm going to mandate 50% electric vehicles i would kiss them, because it would drive a lot of change to our vision, we would sell different tools at the same time we would sell the internal combustion engine and so that is really what

drives our businesses forward. i was out yesterday with a franchisee, on his van, talking to people in his field, in a evacuate ry in louisville talking to people, and the interesting thing about the economy, the economy, it is sort of a two-tier economy, the people who are worked are primed and pumped to go forward and and i think this is useful r they are confident because they've been at their jobs every day. and they got shocked at first, but they accommodated and learned how to accommodate the virus. so they're not -- in the words of the who, they're not going to get shocked again. they're confident whatever happens, spikes or not, things are going to go forward. and they're looking at this and saying things are only getting better it's like they're watching brady drive down the field they have this positive view i think at the gas roots level, the economy is going to keep going. bigger companies are troubled by taxes and inflation. you have a two-tier. >> you weren't talking about the world health organization.

you were talking about the band. i like that. >> right i forgot about that. >> the chip shortage you know, 25% of your business is software. obviously automotive right now, slowdowns in production of new vehicles is it impacting you at all are you keep ang eye on that does it have any impact in terms of what you guys do? >> famous last words right now we seem to have a clear view maybe we're not big enough to make a difference. we're in a good situation at least for a quarter or two we don't talk about -- we don't give guidance -- you know, knock on wood. probably tomorrow i'll be on -- i'll be talking about this and saying it's tough, but we'd have to manage over that. we have such a wide range of products we have 80,000 skus. we have a lot to sell to customers no matter what one particular product line isn't that important to us our diagnostics are great. some wield a 200 billion record database that really helps revolutionize the repair of

cars but right now we see ourselves having a supply. if that happens, if we have a difficult of supply, it's something we'll manage over that this is the kind of thing that happens. you talk about inflation, rick santelli was on tv talking about inflation. i'm saying wait a minute the ports are jammed up. the steel prices are going up. inflation is going to happen one of the good things is we can price for it >> that's key. that is -- that's the whole margin discussion we have every day, nick. it's so great having you you bring great color to big questions. look forward to next time. thanks have a good weekend. >> all right thanks, carl you, too all right. as we head to a break, let's look at the s&p 500. biggest gainers of the week so far. norwegian cruiseline and carnival, top five "squawk on the street" will be right back

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a grind. the big complaints i think this week is the market has slowed down into a lower gear it hasn't been that broad. this push higher than fewer stocks leading, so maybe there's been a little bit of a spread between what the average stock is doing and the major indexes it's valid to say that might be an issue over time if it really does widen out that way. otherwise, it just proves this market has stayed resilient and supported based on this rotation that we've seen. i mean, it's kind of like 2017 in a way at least so far where it just seems like it's pretty relentless even if it's not a lot of oomph behind the move in terms of buying pressure every day. today the rerotation banks are leading in some of the cyclicals while the 100-type nasdaq names back off. maybe building toward a short-term overchute tough today to say this is why the pattern fails. >> as said earlier in the hour, earnings season is going to be interesting, especially given

some of the unanswered binary questions that we're going to be looking for or answers we'll be looking for in the color commentary mike, thank you for the help when we come back, the latest on the amazon union vote as we await some results there and the chairman of viking as the cruise industry looks to set sail amid a ramp up in vaccinations dow record high and s&p record 'rba, 1402 -- 4102 wee ck in a moment we started with computers.

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good friday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber and morgan brennan fresh record highs on the dow and s&p as both of those indices are shooting for their third positive week. i have breaking economic data as well let's get back to santelli >> yes thank goodness this data arrived on time. we're looking at the february final read on wholesale inventory. our mid month was up -- we stand up up .6%, and we came into the year up 1.4 for january to give

context. our february whole trade sales trade month over month, down .8. that's a surprise. that follows up 4.9. that's probably why we gave a little back. it was pretty strong our last look, so a little takeback think about it from an averaging perspective. yields on ten-year notes are still up on the week excuse me. down on the week and up on the day. 5-5. we want to keep a close eye on that 172 area. that's where we finished off for last week. >> rick, thank you here are some of the stocks we're watching 30 minutes into the trading session. cruise stocks moving as investors watch for a post vaccine recovery carnival getting two updprads amid a potential summer restart, and the ceo of vikings cruise joins us later this hour next both the s&p 500 and dow on pace for a winning week and a strong start to the new month and quarter. and fubo tv shares surging

the company winning streaming rights to the qatar world cup qualifying matches for 2022. we'll have much more on these throughout the hour. carl >> all right first up, though, this morning, the amazon, alabama union vote count continues. results are slowly coming in the preliminary results indicate that rejection of unionization by more than a two to one margin that's where we begin with columnist for the new york times jim stewart. it's great to have you back on fridays. >> good to see you a beautiful day. >> yeah. very nice. this vote obviously has a lot more riding on it than just amazon's labor structure and these indications are obviously early, but if they're right, what does that mean and are you surprised? >> well, i have to say this is a huge vote, because it's the first real test of unionization in one of the big faang companies with amazon.

now, that said, i'm not all that surprised by the vote. i'm a little surprised that amazon is so far ahead, but i'm not surprised that they're winning. i think the primary reason i would point to is the amazon stock prize. and this is something that unions are going to run into at all of the big tech companies who in part compensate their employees through stock benefits amazon offers a restricted stock units to most of its employees not all, you have to qualify for it but if you've gotten those stock benefits in the last few years, look at the amazon stock chart everybody has been focusing on the hourly wage and they do pay above the 15 minimum that's well and good, but where you can really do well at amazon is getting in on that stock plan and as long as the stock is going up the way it has, i think the unions are going to have an up hill struggle and that

applies to a lot of the big tech companies. >> that's interesting. you know, jim, yesterday the national retail federation put out a tweet that listed five reasons in their words why pro union is not pro worker. they argued unions want your data, they want membership to be chosen without a secret ballot i guess i wonder do you feel like the industry, the larger retail industry's back is against the wall >> look, it is the larger retail industry is struggling and retail, the sort of track record of unions in retail is -- it's not like it was for the steel workers. it's always been a trickier area i think in part because it's so easy to find people for these kinds of jobs. and you know, the kinds of things that they're citing, i don't think is what the average worker pays all that much

attention to, whether it's secret or not. they're looking at the basic what are their working conditions and what are the benefits? what is their salary and their pay? now, there have been complaints that amazon is very tough, especially on these warehouse workers, that the working conditions aren't great. on the other hand, you know, there are always going to be some disgruntled employees it doesn't seem like amazon has had any trouble attracting workers for these jobs and they are paying a fair amount and they do provide very good benefits. honestly, i went down the list of the amazon employee benefits today. and i can tell you as a professor at colombia journalism school, there are a lot of university professors who would kill for those benefits. so it's a pretty good package they're getting there. >> yeah. well, they manage to add half a

million employees last year, jim. an astounding number 1.3 million total employees, i believe, at amazon roughly now i want to move onto taxes. one of your favorite subjects and one i always like to ask you about. it's david, i'm sure you picked that up too. >> yes, i know >> jim, let's start with the corporate tax rate increase proposed by the biden administration to help pay for some of the infrastructure plan. what are your thoughts >> well, i have to say i am disappointed that there is no more -- there isn't more reform in this package, both of the individual tack code which for some reason seems to have been pushed on to the back burner and in the corporate tax area. i think i get why they're going there. i mean, corporate taxes are much less controversial, and we've talked about tax reform a long time and the minute you start tinkering with that individual tax code, the interest rates get up on their hind legs and start

screaming. the corporate tax code isn't nearly as controversial. but i think an important point is corporations are not some animated entity out there who are raking in the money and not doing any work they are comprised of people they're executives and managers and workers and shareholders it's people, and somebody is paying the $2 trillion now, who is that going to be that is a big -- still an open question i think among economists certainly some of it is going to come from shareholders in the form of lower profits but in many cases with higher taxes, it raises the cost base for the companies. they will be passing that onto consumers. they will be trying to cut costs elsewhere which might include employee wages so it's not at all clear that an increase in the corporate tax rate is going to hit the wealthy shareholders that a lot of people seem to assume will be

the ones paying for this >> yeah. jim j i got to think that all this is -- still has a long way to way in terms of the haggling, the negotiating and what it looks like especially if you actually want to have bipartisan support. i'm going to tie all of these topics together right now and flag the fact that as we're having this conversation about amazon and union votes in alabama, the infrastructure bill also has this implied in it, has major provisions protecting the right to organize act, the pro act of 2021 which would among other things maybe strip some of the provisions for the right to work states and enable for unionizing across the nation more broadly as well it all seems to be intersecting here under a biden administration where the president has said he would like to see more unionizing >> i'm a big fan of infrastructure investment, and federal spending on a wide array of infrastructure projects i'm thrilled a lot of this is being addressed.

trump said he would. never got around to it that was disappointing we need a lot of this. but let's face it. a lot of other stuff has been gerrymandered into this quote, unquote, infrastructure package that is not really infrastructure and if that's how the administration wants to approach this and go to congress, fine. i just think they should be honest about it and not pretend that a lot of this is really infrastructure it is -- there's a grab bag of other things in there including a lot of money being spent on home health care and other issues that traditionally would never have been considered infrastructure bill. but if that's the price we have to pay to get a bill, maybe that's okay. i think infrastructure spending is very important. and again, the right to work laws, i think, are -- they're significant. can they change the very strong trend that we have seen over

decades now away from unionization i doubt it i don't think this is really turning on technical issues although i'm sure there are union people who would disagree with me. >> you know, jim, yesterday jpmorgan had a big call earlier in the week. their general take away was that infrastructure is likely to occur by mid september using budget reconciliation. on the tax rate they say more likely to wind up anywhere in the mid 20s, 22 to 24. they also said that salt cap reversal, in fact, most reverses are highly unlikely because even democrats don't want to be seen raising taxes ahead of the 2022 election >> i think that's a big factor, and i think that's why biden is kind of pushed this whole individual tax reform issue to the back burner, because it is raising taxes -- it's not a popular issue to be heading into in the election with, but what

we recommend and what worked well in the reagan administration is to go back to the reagan playbook and by the way, was republican orthodoxy for many years if you close the loopholes so-called broaden the base, you can raise a lot more revenue even as you lower the overall rate for most taxpayers. in other words, with the stick of higher taxes, give somebody some carrots show that, in fact, by closing the loopholes and there are plenty of them that need to be addressed, you don't have to raise individual rates you can actually in some cases lower them i haven't worked through the numbers lately, but i strongly suspect, for example, with a significant increase in the capital gains rate was on the table for biden, you could generate a lot of revenue and possibly even reduce tax rates

>> jim, it's great to have you back i hope we can get you back on fridays with some regularity have a great weekend >> thank you good to see you all. >> as we head to a quick break, here's a look at the road map. a strong start to the month and the quarter. both the s&p 500 and dow hitting new records this morning plus we will go back to that reopening play we'll go out to dodger's stadium set to open for the first time to fans this season after spending millions on new safety measures and after the break, sailing into a post vaccine world. we'll talk to the ceo of viking cruises for his outlook as florida sues the cdc to reopen ports. "squawk on the street" is back after this the lexus es, now available with all-wheel drive. this rain is bananas. lease the 2021 es 250 all-wheel drive for $339 a month for 39 months.

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zbljts . florida is suing the cdc to resume cruises >> david, that's right the governor announcing his state of florida is filing a lawsuit against the cdc and the federal government demanding the cruiselines be allowed to sail desantis calling the decision to delay the cruise line industry from reopening irrational. it has been 14 months of no sailings in the u.s. and that's had a significant effect on florida's economy. over $3 billion lost in the

first six months of the pandemic over 58,000 jobs those who work on the ports. while the publicly listed cruise lines have gone on the record over the last 24 hour to acknowledge the lawsuit, i'm hearing from stake holders inside the industry that this lawsuit is being met with mixed reviews. on one hand they appreciate the support of the governor but hope this doesn't contribute to a further delay in talks with the cdc. the line of communication between the cruise lines, the biden administration, and u.s. health officials has been described to me as strained. at the same time, you have these state officials who feel like they need to get involved in this issue because there has been a lack of communication overnight we heard from the governor of alaska issuing a strongly worded statement to jeffrey zentsz j the covid task hors force head talking about the vital role the cruiselines play.

>> viking cruises announcing this week the restart of limited operations with iceland and uk voyages. joining us now is viking chairman the tor hagan thank you for being with us. >> how are you >> doing well. so you made this announcement today. specifically why these particular trips and these sailings and who is actually booking on them so far? >> well, this past year has been one we would rather have forgotten. so the day when we now see that we can start to operate is really long overdue. we were the first cruise line that stopped operation in march of last year and we spent a lot of time studying how we can operate safely because i think it's in everybody's interest that the cruise lines operate safely. we cannot afford another outbreak on ships.

so we have found a good way of doing this uniquely in the industry, we have installed pcr labs on all our ocean ships, so we can test everybody on board daily everybody meaning passengers and crew and we have been ready, really, to operate for a little while. but we have waited until we can get acceptance from the various countries. and the first one to open up was england which is part of the united kingdom so they allowed domestic travel on the 17th of may, and we will start operating there on the 22nd on the limited scale, we want to make sure we do it right and then other iceland is another country we navigate around there, and we are now around bermuda these three places are places where we can offer a product to

our guests, and that's many people now who are sick and tired of sitting at home, and we -- the initial reaction has been very, very positive we have pretty much sold out >> interesting so all the back and forth, and i guess you could even say mixed messaging, might be a nice way to put it, with the cdc and its guidance over recent months. i mean, given the incredible ramp up we're seeing in vaccination efforts here in the u.s., are you surprised that it has been slower than some of the other countries to actually implement the guidelines and basically open up for cruises to operate again? >> i think we have taken a very comprehensive view on this ourselves. so our protocol that we operate with the frequent testing on board is a protocol that was developed before the vaccines were there obviously the vaccine puts things in a much more favorable

light, but we will still operate with both testing and vaccines, and you can say it's a bit what we call belt and suspenders, but i think at this stage it's better to be safe than sorry so i think we've done the right thing. >> what are your expectations in terms of the coming months and the rest of this year and your ability to start to roll out and conduct even more cruises than is currently the case? >> viking is a company, we have two main businesses. we have a and oceans we have europe and the situation in europe is not very good. so that may take a little longer time on the oceans, we have six modern cruise ships. they are small, and they are

very, very well equipped for these covid times. so i would suspect when we have the month of july we can see all six of them in operation that's our aim >> right and obviously as you say, europe is a bit harder to understand or predict, i guess, at this point given where the virus stands do you have any hopes there? i mean, things can move quickly in a good direction when would expect, or are you simply going to step back and wait in terms of monitoring what goes on in europe >> i think the problem with europe has been the coordination between various countries which hasn't been very well done so i think we can -- when we start up on the rivers, you can see we'll be operating on rivers that are in one country. i could say portugal, for example, could be early on the list but i'd say that we will take

our due time, but the most important thing is that we don't expose our guests to problems. and on the -- >> go ahead. >> and we have pcr labs on the ocean ships. the river ships it's different, but there we have a europe-wide agreement with labs on that so we can also perform daily testing on board and our testing interestingly, i know many of you have done tests. we have the little brain scrambler where you have this stuff stuck up your nose fortunately, we have found a better way of doing this we can do a saliva test which makes it a much more less intrusive experience, and that's the way we can carry this out if need be daily. >> given the fact that customers, passengers that climb aboard are going to be

experiencing a much i guess more stringent, much stronger health and safety regimen, given the fact that there seems to be all this pent up demand but we're still seeing a slow drip in terms of offerings come online right now, what is your expectation for pricing? >> i think pricing will -- we'll see what works out for 2022 and our bookings for 22 are at prices that are higher than 2019 at similar times and interestingly, when we look at our bookings for 2022, we see that we are over 100% more sold on the rivers than we were for 2019 at the same time. so it's not only theoretical pent up demand it's there, and it's coming. so we are -- it's all evidence is there people want to travel. they are sick and tired of staying at home. >> yeah.

amen i'm definitely on that list. tor, thank you for joining us today. we appreciate it >> thank you very much coming up after the break, defense stocks are in focus as the white house unveils the pish list for 2022 funding. get ready for a new program on cnbc beginning monday at 11:00 a.m. eastern time. tune in for the premier of tech check anchored from the east and the west coasts. we really hope you'll join us. more "squawk on the street" continues after a break. it used to be that brainstorming required a whiteboard and squeaky markers, but when you have devices that let you collaborate in real time from anywhere, the future works better. microsoft surface devices with teams, orchestrated by cdw enable employees to stay productive

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welcome back to "squawk on the street." it is time for our e the tf spotlight. we're looking at the ticker xar. it's been shooting higher in recent months amid the broader market rotation. it's about 11% to start the year you can see it's under a little bit of pressure today in the session so far defense stocks have largely lagged so in focus today is the white house unveiling the so-called skinny budget. this is including the fiscal 2022 top line proposal for

defense spending the defense budget has been the primary focus for investors. despite what we've seen in earnings in recent quarters. today's dod number expected to be $715 billion when we get the results or the release, i should say, versus $705 billion for the department of defense. meantime, analysts say the names exposed to the rebound in civil aviation and the return of business jet demand, general dynamics, raytheon and even boeing may be better positioned in the near-term speaking of a and d, we want to focus on space adding to the position in the jaws spit fire acquisition spac that is taking velo 3-d public here's what the jaws chairman had to say about the printing

company on cnbc last month >> elon wanted to buy it they didn't want to sell we had an opportunity to take them public. >> all right they wanted to buy meaning spacex velo 3-d has a growing list of clients printing everything from jet engine parts to fuel delivery systems think that components that because of design hurdles were extremely difficult to make, be it traditional means or additive capabilities this is where the company focuses. it's a name to watch keep in mind, it is very small it expects to grow revenue from 19 million in 2020 to 26 million this year. 89 million in 2022 most of that is already booked i should note. $1.6 billion valuation in terms of that spac merger, but, david, at a time where aero space

companies have adopted technologies it might be small but has potential when you have kathy woods making an investment in the future of the company. >> well, she is no strange tore many of these somewhat speculative names certainly, and has obviously had great success in terms of some of the purchases that she's made. interesting to see the move in that stock in particular as we've said and we've all been covering, spacs have not been responding to the deals in the way they had been previously this is another case where much of it is on the come >> that's right. and another name in the space sector that i would flag is the spac, sector acquisition spac that's taking rocket lab public. rocket lab announced its next mission for next month they announced it yesterday afternoon. it's going to be a mission in which they look to bring back their rocket booster as they

continue to ramp up efforts around reusability they get to the place of reusing the rocket booster, they'll only be the second company in history to reuse rocket boosters for orbital launches it's already doing missions. when you look at that spac and where it's trading, it hasn't been particularly strong i think it's trading around $11 a share to your point, david >> yeah. well, we're keeping a close eye on many of these at least it's up a number are responding hardly at all to their deals. morgan, thanks up next, black stone is with us. "squawk on the street" will be right back ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪

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welcome back here is your cnbc covid update at this hour japan announced it's raising the coronavirus alert level in tokyo ahead of the summer olympics this as a more contagious variant continues to spread. the move allows for tougher measures such as shorter openings for restaurants and bars norway's prime minister is apologizing again after breaking covid-19 social distancing rules when she celebrated her birthday she also said she will pay the fine, around $2,300. sam adams is launching the shot for sam program the beer maker is releasing an add to encourage people to get a vaccine. it launches april 12th for the first 10,000 people who share proof of vaccination participants will get a chance to receive $7 a cash enough to cover a sam adams beer of choice from a local beer or restaurant david, companies are rolling out all the stops to get you to get

the shot >> i guess so. >> yeah. back to you. >> get a free beer thank you. >> whatever does it. about an hour into today's trading session, we'll get a check on the markets right here. you can see not really too much of a response at least to signs of inflation let's bring in vice chairman of blackstone's private wealth solutions group. b byron, the core rate jumped by .7% what does that mean to you is it a concern, or is the market at least today seemingly overlooking it right to do so? >> i'm on the side that inflation is going to be worse than the consensus thinks. you know, last year we threw $2 trillion at the economy when we were in a bear market and a

recession. now we're in a pretty strong recovery, and the market itself is doing well. and we're throwing $3 trillion at it. so it's been my expectation for some time that the inflation numbers are going to be troublesome. and that's what we're seeing in the ppi today. so i think it's a vindication of the point of view i've had i think the ten-year treasury yield is going to rise i think it's going to crash through 2% i think -- i don't know how far it could go, but i wouldn't be surprised to see 2 .3% or even 3% and the question is how will the equity market respond to that? and maybe it will sluhrug it of, but i'm worried that now is the time that you should apply some caution.

the market is very fully priced in my view, and the dangers of higher interest rates are ahead of us. >> okay. you laid it out for me there let's assume you're right, and we crash through as you said 2% on the ten-year heading to 2 .5%. within this year, what are your expectations, thenfor equity prices and are there parts of the market that you would still favor, perhaps, as being a good place to be in an environment like that? >> well, i definitely think we're in a bull market and i think that this rise in rates could create a correction in the market, but not cause a bear market to resume. so i've been -- for a few months i've been apprehensive fabout a

10% correction i think we could see that, maybe even something more, but i think since the -- the fundamentals are strong i think the s&p 500 could earn as much as $200 this year. so as a result of that, i think the bull market will resume, and i think we'll end the year higher than where we are right now. >> just to dig into that a little more, it's morgan, i mean, you were on cnbc back at the beginning of the year with your predictions and actually quite a number of them seem to be materializing here. including -- >> yeah. morgan, they are surprises they are not predictions >> okay. surprises. yes. thank you. but one of the other things you note there, you noted at the beginning of the year was the strong dollar. we've seen strength in recent weeks. i wonder what you think that trajectory looks like from here. >> well, rising rates are

generally good for the dollar. i thought the dollar would be strong not so much because of rising rates but because the u.s. is a good place to invest the economy is recovering. we're certainly going to have real gdp increasing 6% to 8 % this year. maybe even more. and earnings, as i said, of $200 are very impressive. we made more progress than almost any country on the coronavirus, so i think things in the u.s. are quite favorable. i think companies are going to -- overseas companies are going to be willing to invest here, and as a result the dollar will be strong >> right all right, i want to come back to the market for a minute this idea of rates moving significantly higher because you believe inflation is going to

continue to tick higher and yet you still see us in a bull market so the connection between the ten-year yield moving up and any real downside in the overall s&p 500 is not going to be there, or it's only going to be temporary in nature? dig into that for me a bit >> yeah. i think the market, you know, if the ten-year were to go to 3%, that would still be a relatively low interest rate, and if earnings continue to be strong and the virus continues to be under control, i think after a correction the market can resume its up swing because this is going to be a long cycle it's going to last for several years. we're going to have economic growth, not at the 6% to 8% level, but at 2 % to 3% for sure, and maybe in 2022 at 4%. so we're in a long-term economic

expansion, and as a result of that, the $200 for this year is going to increase in 2022. and i think investors are willing -- are going to be willing to pay for that. so that's why i said, i think the market will end the year higher than it is today. even though there may be a correction inbetween as a result of higher interest rates >> all right laid it out for me i'm going to remember that for our next conversation. see where we stand byron, always good to get your take on things thank you. >> a pleasure to be on the program. that higher than expected inflation data this morning is driving tech a bit lower this morning. let's get back to rick santelli. hey, rick. >> hi, carl. indeed everybody is talking about the hot topic of the day and the hot topic of the day was hot, hot hotter ppi and it isn't only what's going on in the u.s. but real quickly let's put a

final recap on it. the year over year numbers in my opinion were the most important to pay attention to. pretty much every aspect of this report was at or near some of the highest levels whether month over month or year over year, but it isn't only in the u.s we had another very large economy release their information regarding inflation. and china for the month of march, on their producer price index was up 4.4% year over year that's versus february which was up 1 .7% and on their cpi, their february number had a red ink it was a minus sign. it was down a couple tenths. that month over month number in march moved up .4. many remember when china joined the world trade organization and started to contribute into international growth and become a player in all these supply chains, what we saw was they were exporting something besides goods. they were exporting low prices

they were exporting deflationary prices and it lasted for years. it was in many ways the golden era of low inflation now maybe that's going to reverse. maybe one of the exports will be higher inflation and that's paired with higher inflation rate here as well. whether it's transient or temporary, who knows i do know one thing. that as inflation moves, it contributes to the inflationary data but if it rises dramatically and sticks, it doesn't anymore that becomes a rate of change of zero on the inflation front. white board, we saw hotter ppi the thing is what kind of a move did you see in treasuries? very little. we've been retracement light and this is a key we need to pay attention to and the ten-year hasn't closed under 161 since the 11th of last month. almost a month why is that 161 important? here's why this is a ten-year chart that goes all the way back in the

intradays. not one dot for every day, but we have five dots, five lines for every session. so you get much more context so if you go back to february 25th, you can see that spike, and i remember the day it happened i said when you get these crazy spikes, they always come back as a technically important. and we have not closed under that and as a matter, when i say retracement light, basically our lowest yield close was yesterday around 16 2. and even though we've come down in the 174 high yield close, we're consolidating. the point is really we want to watch the up side more than the downside and should we close above 174 before we close under 161? i'm with byron, 2 % won't be far behind morgan, back to you. >> it would not be a complete week without your white board. rick santelli, thank you as we head to break, honeywell shares rising.

named a top pick at jpmorgan firms bullish on the exposure to the current economic cycle coming up next, our jane wells is live from l.a. with a look at what's still ahead on the show and probably the best live shot of the day, jane >> thank you, morgan i aim to please. that guy has the best job in basketball he's sweeping with the l.a. logo this is how dodger's stadium has looked during the last year and a half when we come back, the last revenues for the winning los ges dgs.anledoer

it's the battle you've been waiting for. we put microsoft against apple find out which emerges victorious on trading nation more "squawk on the street" is coming up.

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to fans for the first time this season we are joined with the details jane >> hi, morgan. these are brand new home run seats they've installed here in center field part of a renovation here. they really spent big on this. this for a team which already has the largest payroll in baseball almost a quarter billion dollars. coming off a championship second base where the team tells me they lost $100 million because fans couldn't be here. finally today fans will see their champion dodgers for the first time in person on the home turf and a new stadium the team hired a ballpark designer, janet marie smith to update this shrine while staying true to the mid century heritage they have a brand new entrance because of covid, everything is cashless there's not going to be any guys selling peanuts and cracker jacks in the stands. you have to order everything from an app and then go pick it up out of your seats this is because they had to remain safe, but they need to whip up support for fans to come

back here and also then make up all that money to cover the payroll and last year's losses they need to sell a lot of tickets. this is the largest stadium in baseball 56,000 seats the state may allow full capacity by mid june that will be two months after anyone in california over the age of 16 can get of 16 can get. president and ceo stan cass will be joining us live in the exchange to talk about all of this and also talk about the league's decision to pull the all-star game out of georgia. but for the first time in a year and a half, there will not be fake fan noise today in dodger stadium as the world series champions take the field guys >> i have always thought it was very fascinating in the different sports, who decided to pipe in that noise and how unusual it sounds when it is absolutely silent. but if you make it, will they come are seats selling out? and can they turn a profit without full capacity? >> well, i don't -- it's going to take years to make up the

$100 million they lost in revenues last year they're only allowing 15,000 in right now. but of course, they're selling out. it's very hard to sell out dodger stadium, because it is a big bowl, but this season, once they're allowed to do it, i think it's going to be pretty hard to get a ticket, on the primary market >> jane, that's such abeautifu stadium. do you want to do some stadiums for us do you want to run up and down a few times? >> reporter: okay, here we go. well, you guys go to break, i'll get my cardio in go to this first camera. hello, first camera? all right, now, second camera. second camera. >> come on back! >> all right >> man, that woman is still in incredible shape >> oh, my god. oh, my god, i'm having a heart attack okay >> thank you >> keep going. be careful >> one more, come on >> as we go to break -- look at her! wow! we're going to check on shares

of at&t. the company announced it would record a non-cash gain of $2.8 billion actually for the first quarter. it's a move related to a pension plan you can see it's not having much of an impact on the shares, at least not a positive one and coming up, beijing is beefing up its vaccine freebies. we'll give you that story, next. "squawk on the street" is coming right back jane probably still going up and down those stairs. (vo) nobody dreams in conventional thinking. it didn't get us to the moon. it doesn't ring the bell on wall street. or disrupt the status quo. t-mobile for business uses unconventional thinking to help you realize new possibilities. like our new work from anywhere solutions, so your teams can collaborate almost anywhere. plus customer experience that finds solutions in the moment. ...and first-class benefits, like 5g with every plan. network, support and value without any tradeoffs. that's t-mobile for business.

can free giveaways help boost vaccinations china seems to think so. our eunice yuan has that for us. >> reporter: in chinese cities like beijing, people are lining up for a sweet treat to go with their vaccines this vaccination center was set up at a popular shopping district here in beijing to make it more convenient for people to get a shot once i'm done here, i can get a free ice cream >> reporter: whether it's free mcdonald's soft serve, legos or discounted meals, china's encouraging giveaways to coax more of its 1.4 billion people to get vaccinated.

>> reporter: once you get your vaccine, you're handed these coupons. they're good for any of these restaurants nearby the center. the freebies arebeijing's way of overcoming strong resistance to vaccines across china, driven by sfuccessful pandemic control, but also mistrust in chinese-made vaccine which lack an international peer review of their data beijing is also using shame tactics. buildings are color coded with green, yellow, and red posters to reflect how many people inside comply. shops have started putting up government-issued signs to show their customers that their staff are being vaccinated at this store, 90% got the jab a price to get life back to normal >> beijing's goal is to get 40% of the population by june and 70% by next year which would be herd immunity but only 4% right now are covered, which i think means that we need a whole lot more

free ice cream over here >> i always think, eunice, to your tweet about a year ago, when the u.s. was just getting into the pandemic, you said it does get better, and china, obviously, allows us to see a bit of the path ahead. great stuff, eunice yoon in beijing, eunice, thank you coming up after the break, we'll talk more about this amazon union vote on the final "squawk alley," because on monday, it's the premiere of "tech check," me, jon fortt, deirdre bosa and jiaul boorstin covering tech as only we can that begins monday at 11:00 a.m. eastern. we're back in a moment we kept going. working with our customers to enable the kind of technology that can guide an astronaut back to safety. and help make a hospital come to you, instead of you going to it. so when it comes to your business, you know we'll stop at nothing.

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good morning it is 8:00 a.m. at apple headquarters in cupertino, california it's 11:00 a.m. on wall street and for the last time, "squawk alley" is live