♪ it is 5:00 a.m. at cnbc google headquarters. here's your not 5@5:00 more johnson & johnson fall out as regulators issue more guidance on that now paused vaccine. investors bracing for a wave of bank earnings, jpmorgan chase, wells fargo, goldman sachs kicking off news today history at the nasdaq as coinbase appears for the debut >> the archegos saga as credit

suisse on big time trades. and getting in the way of president biden's ambitious tax reform plans it is wednesday, april 14th, 5:00 a.m and you're watching "worldwide exchange" right here on cnbc ♪ i'm back in the new york groove ♪ good morning, i am dominic chu in for brian sullivan. kicking off your wednesday morning with stock futures indicating some stability at the opening bell the s&p hit a record yesterday the dow joan industrial average implied higher by rough 18 points very modest move s&p up 5 points, nasdaq up by 24 at the opening bell. if these future moves hold into regular cash equities trading. remember, the s&p 500 and the nasdaq 500 coming off fresh record he's on yesterday's session. onthe sector tech side of things, you've got health care,

consumer discretionary also coming up. yes, record-breaking sessions for all of those sectors as well the big play in 2021, the russell 1000 growth etf is up for nine sessions in a roy for the snfirst time since 2017. coming off a fresh all-time record of its own. aside from a wealth of fed speak ode, invers are bracing for the start of earnings season and the word from goldman sachs, jpmorgan chase, wells fargo all opening up their books before the opening bell today and expected to surge 76% from the same time next year. estimates for financials heading higher into that earnings season at the start of the month, expected earnings right around 69%. upward divisions have come over the past few months. take a look at the significant

progression since october. take a look at that. 27%. january, 2021, 48% then 70% and then 76% right now, just to show you how much the expectations have progressed over the course of the last several months we will dig into this more with capital adviser's anton schultz later. in asia, hong kong popped more than 1% as you can see there. the hang seng and hong kong up 1% and the nikkei and japan down by one half of a percent. predominantly green on that asian side of things around the globe. let's spin it around to europe mostly green there the german dax and the ftse up 0.2% and the cac and france up half a percent as well. let's get to some of these top stories, including the

latest out of the johnson & johnson vaccine saga bertha coombs is here. bertha >> yeah, it just continues to unfold, dom. europe's top regulator is expected to issue new guidance on the johnson & johnson vaccine as soon as today that according to france's european affairs minister. that decision comes after the cdc and the fda here in the u.s. recommend pausing all j&j vaccinations for a few days after six women under the age of 50 developed rare blood clots after getting the shot meantime, sources well cnbc that credit suisse is still unloading its position in discovery linked to archegos capital management the bank was shopping 19 million shares of class a stock and 22 million of class b yesterday shares of discovery this morning are trading down on both sets of stocks, both the class a and

class c down nearly 6% and stitch fix founder katrina lake will step down from her role as ceo and assume the position as executive chairman the online fashion retailer naming president elizabeth spalding to replace lake as chief executive. she will also be elected to the board. the leadership changes go in effect august 1st. katrina lake founded the company back in 2011 while a student at a business school. and she's one of the youngest women after to take a company public she was 34 when stitch fix started trading. dom, she's not yet 40. i'm sure a lot of folks are wondering what is her next chapter. >> i'm wondering what the heck i've done with my life, bertha bertha coombs, thank you for those headlines. >> incredible. we'll see you later this hour back to the markets, there are

five themes for investors, seema shaw is the chief strategist at global investors pgi, seema, thank you for joining us here. what do we have going on in terms of your thoughts is this earnings season going to be enough fundamentally to care this rally into the next few months >> hi, dom, yes, we doll believe that the earning expectations are improving in line with economic recovery we're seeing economic data coming through showing a much better than expected q1 growth, not just in the u.s., but actually across the world. really, the earnings season for q1 where you prop up a good base under the market and start to justify some of the really extended valuations that we've been looking at. >> so, when experts like yourself, you know, they look at the numbers, they model things out, try to forecast what's happening, they put valuations on these at what point, seema, give us

incite on the process, at what point do you say to yourself how much has been priced in? we know that these financials and companies have rallied tremendously over the last six months how much optimism is already baked in there and we know the expectations keep rising. are the expectations to the point that say hey, buy the rumor and sell the news? >> dom, that's such a question and really a simple one that we get off all of the sessions in recent weeks as people are starting to wonder saying look, is this really and where the market goes. well, i think the market perspective, we are looking at a global recovery which is only just starting to unfold. it's still got much, much farther to go. we've had really good news, especially with the fiscal stimulus package and the reopenings taking place. it's generally good news for our perspective, valuations, of course, are an important element of any kind of analysis for long-term investing but just

because things are expensive -- sorry, it doesn't mean that they can't continue to do well. as long as there's a strong global growth outlook and as long as the central bank is still very supportive. which is where we are today. >> the case has been made, seema, that there are bubbles popping up in certain key parts of the market. when i say key, i mean the most high-profile ones. bubbles popping up there are those bubbles, say, in cryptocurrency or certain parts of the tech sector, communications sector or even now the energy sector, are they worrisome at all are they indicative? are they tea leaves for the direction in the offing? do you feel as though these bubbles are things that we should worry about >> well, i think it's always important to keep an eye on the bubbles. with the central bank stimulus that we've experienced not just in the last year, but also the last ten years, it's also an

understanding that investigators are concerned about bubbles. with cryptocurrency, a volatile part of the market, an investor looking at that needs to be aware of the risk that they're entailing. when you look at the technology, actually, we have good expectations about their earnings, cash flow far outweighs anything we've seen in the market although there could be short-term tethers in technology, from a longer term perspective, tech could be further to run and i think some of the bubbles are concerned about where central banks are applying a lot of their liquidity. those things will come to fruition one day actually, we're not so concerned about it in the short term 2021 will be a good year for the market >> seema shah, thank you very much when we come back, much more on the fallout surrounding the johnson & johnson vaccine pause. we'll speak with one voting member of the committee that originally recommended the use of that vaccine to the food and

drug administration. his take on what comes next. plus, history in the making for coinbase, as the company prepares for its public market debut on the nasdaq today in a direct listing format. we speak with one investor who got in early you know him, he's been on the show before. a very busy hour ahead when "worldwide exchange" returns after this break the number one brand to support beautiful hair, glowing skin, and healthy nails. and try advanced, now with two times more biotin.

welcome back to "worldwide exchange." here's a check of some the big

stock movers of the morning so far today. 0 toshiba's ceo is resigning after a management rift widens after a buyout over cdc capital partners cdc's offer values compete at more than $20 billion. reuters reports that the board planned to oust the ceo before the bid was made public last week up 6% in japanese trading. shares of lg electronics up more than 2% in korea today the company declining to report on medial reports that apple is very near to signing a deal with lg and automaker magna to build a car. lg up on that news s.a.p. reporting preliminary first quarter report as top analysts forecast that profits rose 32% the company raising its output for the year citing strong growth across all applications including cloud and software licenses and then finally, procter &

gamble, p&g, raising its quarterly dividend by 10% after a surge in cleaning products and other household goods. p&g reporting its earnings next week still on deck for the show, top banking analyst anton schutz is here. with banking names that he says should be on your radar for buying plus, coinbase coming out of the gate with a $60 billion valuation. but your next guest says try boosting that number by 40 billion more we're back, after this today's big number $13 trillion that's the total trading volume crypto exchange/broker businesses are on pace to do this yr,ea according to bernstein. that's equal to the dow spot

trading volumes in 2020. i really hope that this vaccine can get me one step closer to him. to a huge wedding. to give high fives to our patients. to hug my students. with every vaccine, cvs is working to bring you one step closer to a better tomorrow. with every vaccine, cvs is working to bring you hey, it's good to see you. the company we've trusted to keep us working remotely,

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visibly diminish wrinkled skin in... crepe corrector lotion... only from gold bond. welcome back to "worldwide exchange." on cnbc. it's history in the making at the nasdaq as coinbase readies for its public market debut. the exchange for direct listing really of sequence ever. the nasdaq giving coinbase a reference price of $250 per share. that's important, ahead of that listing which would value the cryptocurrency at about $65 billion. so $250 reference price per share, equals $65 billion

valuation. excitement around the listing. one of the first major crypto businesses to go public, boosting the price of bitcoin to record levels as well, as you can see they're currently right around $63.5,000 per token joining me is one investor who got in early on coinbase partner of research at manhattan partners santash, can i ask you how does manhattan venture partners, how do you guys get in on the pre-ipo funding, coinbase, robinhood, what is it that you guys invest in these at such an early stage? >> well, that's what i do with research and our team out there, we just go out, look at companies from ground up. look at the market opportunity out there. it's just about doing your research looking at new trends, ideas coming up. and we just got to get in early.

that's what it is. kudos to the team. >> it's worked out a lot we just showed a board for viewers out there of all of the companies you've been involved with it's a laundry list of unicorns out there. let's figure out from your perspective, coinbase has to be one of those ones that gets you really, really excited just because of the craze over crypto, the last several years take us through the fundamental valuation-type driven analysis of why you would still hold on to a company like coinbase >> yes, absolutely we got in early, before the whole hysteria and themomentum behind the bitcoin we knew this was a great asset category we knew this company was a right way to participate in this whole thing that we expect now i think valuation-wise, we're thinking long-term view. we're not just looking at a snapshot today we believe it's just early earnings the whole crypto

economy. this is right in the middle of this it's diversified play. best of breed type play. we look at the long-term view. i think the path that it's on may have some turbulence but again, it's going to go up in terms of the user base and the revenue, transaction volume. yes, there is some pressure. there will be pressure and the commission rates will come down. i know that's being a big bear here, but that's fine. they have enough breadth they have a number of assets on the platform which is still a very small percentage of the total assets available anything of value can be digitized and on the crypto platform i think the market opportunity is huge. and this company is right in the middle of it to take advantage of that. with the right valuation, they're looking at closer to $100 billion my valuation was 100 right out of the gate. when you look at revenues, 11 and change times the sales and about 27 times ebitda, i

think that's reasonable for a company that's disruptive and going to be at the cutting edge of this whole crypto mania >> santosh, obviously you have an ax to grind here. you own the stock. it's worth $100 billion in your mind let's take a look at whether you feel crypto prices need to go higher in order for coinbase to keep growing its valuation >> yes, that's the correspond business at this point but they have other services too. they also have a subscription product coming up. the whole rate of services, the custody services, they have a number of other levers to pull as they go up. but trading in cryptocurrency is a big part of their business model at this point. and there's no reason why it should stop. and the people are reazing the value, they think it's going to be an integral part of the financial system going forward and it's going to be right there. it's going to be valued there. and it's important

crypto is important. cryptocurrency the best part, it's agnostic we don't know which will take off. right now, a whole range of other coins that are on the platform that can take off so, this is agnostic it's important that they do well but it's not necessary, they have other services, and they have the technology breadth, scale, to keep that competitive value going forward. >> santosh rao, please keep us up to date what the vnext ventures are doing coming up on "squawk box," don't miss the interview with ceo brian armstrong. a must see interview it could be a transformational listing. let's check on headlines, nbc's frances rivera is here will the latest.

>> dom, good morning to you. we start a third night in a row here in minnesota. the minnesota national guard say 2,000 members have been activated. police made 60 arrests overnight. yesterday, the officer who fired the fatal shot and the police chief both resigned over wright's death ever given, the ship that blocked the suez canal has been impounded. authorities seized the vessel over the dispute with the japanese owner the court urged to seize the ship on monday no word on how much money the canal authority was seeking but officials say it was demanding at least $100 million. we're just 100 days away from the olympics. and the olympics rings just west of tokyo, the organizers continue to press on with preparations for the games which start on july 23rd dom, just another thing that we can all look forward to in the

months ahead >> fingers crossed, frances. >> tight, really, really tight >> all right, frances rivera, thank you very much for that have a nice day. pfizer and moderna are stepping up their vaccine game in the vacate of a global pause around the johnson & johnson jab. what one doctor who voted yes on the johnson & johnson vaccine has to say about the pause and what the next could be coming up now, if you haven't already done so, subscribe to our pod co cast, "worldwide exchange," check us out on apple or whatever you choose. so, why not your cloud? a hybrid cloud with ibm helps bring all your clouds together. that means you can access all your data, modernize without rebuilding, and help keep things both open and secure. that's why businesses from retail to banking are going hybrid with the technology and expertise of ibm.

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♪ mounting fallout over that johnson & johnson vaccine pause. we're talking with a member of the panel that actually recommended the fda greenlight the treatment. and why he says he's onboard with that pause. earnings season set to kick off with the big banks under the microscope mendon capitol's anton schutz lays out whether they can live up to the expectations and amazon, google and starbucks are the latest companies to wade into that growing fight over voting laws it's wednesday, april 14th, 20212021 and you're watching "worldwide exchange" on cnbc. ♪

back to the show i'm dominic chu in for brian sullivan this morning. here's how stock futures are looking as we approach 5:30 a.m. eastern time in new york, the s&p 500 and the nasdaq are coming up record all-time highs right now you can see the dow jones higher by 419 and s&p by 4 investors are bracing for a wave of bank earnings but also a wealth of fed speak. along with chairman jay powell, expect comments from john williams, rich clarida, raphael bostics all making comments today. let's get to the top headlines this morning bertha coombs is back with those. >> hey, dom, house speaker nancy pelosi has formally invited

president biden to address congress pelosi setting april 28th for that speech. it will be biden's first to both chambers as president. the speaker had previously meeting covid capacity rules for the event, delayed the speech from its unusual february date speaking with president biden, a group of democratic lawmakers are threatening to cut support for his proposed tax hikes to pay for this $2 trillion infrastructure plan. the 17 leaders are calling for biden to include a full repeal of limitations on the state and local tax deduction passed by congress in 2017 in change for their support. alexandria oc alexandria ocasio-cortez one of the only dems from new york not to sign the letter and a new release today shows hundreds of companies including amazon, blackrock, google and netflix are posing

voting restrictions. the letter appears toe in ads in "the new york times" and "the washington post. dom. momentum is growing on this issue. >> absolutely right. momentum for sure. bertha coombs, thank you very bank earnings are kicking off with three of the big banks reporting first quarter results. analysts are expecting earnings to rise over 75% a sharp change from a year ago which saw q1 earnings decline 38%. a lot of optimism priced into the market right now let's see if it's warranted and bring in anton schutz, chief portfolio manager at mendon capitol advisers, anton, let's see if it's pricing in a very optimistic inneearning season >> well, one would certainly say that, but if you look at how much they got destroyed in the

first part of last year, the move did not reflect the very large gdp increase for the back of the year, steeper yields will occur, much more than last year. i think the stimulus has been incredible it's amounted to 42% of gdp. the economy is awash in liquidity. and banks are awash in ghdeposis they need to support it. >> if that's the growth story, are there certain parts of the financial complex that will be better than others? i mean, when we talk about financials, it could be insurance companies. it could be regional banks it could be money center banks it could be investment banks we've got an interesting cadre, you've got a bank in jpmorgan, and investment bank in wells fargo. which is your favorite >> sure, i reallyself-help

stories. wells fargo is a self-help story. there's a lot more to come there. eventually when they get from under the asset cap, the earnings can explode to the upside they've done everything they can to appease regulators and behave just by the buyout, to grow assets, they're capable of buying $200 billion of u.s. treasury that helps fund the deficit when other banks are more constrained given the slr. >> you mentioned the slr there are constraints here that the banking industry will face in the coming months what do you think is going to be the biggest factor, the biggest factor that kind of caps what financials can do in the medium to longer term >> you know, actually, i don't see a lot of cap on the regional banks right now because i think that loan growth is going to be there. if i'm right and gdp is in the upper middle digits, that's great. if we close back down again,

that's the cap, right? that is the real risk, you know, to the market, to financials we need the economy to stay open and keep reopening there's a lot of momentum here right now. >> as a banking analyst, when you talk about things like interest rates, like margins and the yield curve, you know, there are factors there that you consider how much are you, as an analyst, looking at forecasting for rates? and then how much does that factor into how you feel as though you will allocate capital to certain investments are you doing it more to regional banks because you think that the interest rate picture gets even better for them down the line how exactly do you go about your process in picking which are going to be your outperformers? >> sure. yes, i'm definitely allocating to regional banks at this point. i do expect loan growth to happen, and costs to come out of the industry we're way overbranched in this country so cost is a big factor. and banks have learned that everybody's moved to the internet whether it's businesses or

senior citizens. everybody is logging in. so, they don't need the same amount of branches and resources there. that's important, too. that cost story is one that's going to develop over time not today. but it will come i also look at another sector i love m & a, i love it not only for the banks but also like the boutiques. i think all of the big banks today, jpmorgan and obviously goldman, they're going to report robust in really robust capital markets. one of the flies in the ointment has been the spacs, obviously, the spacs, you can't ipo-them, but all of the spacs have the cash and they've got to put it to work in the two-year clock. you're going see a lot of acquisitions going on. a lot of advisory teams coming into broker/dealers, not just the big ones, i happen to like callen, i happen to like jeffries they're incredibly cheap relative to their prospects.

>> all right, anton schutz, thank you for the breakdown of the banks. always good to have your expertise. have a good day. one of the members of the panel that the fda authorize the johnson & johnson vaccine joins us to explain why he says the pause in treatments is actually the right move first, as we head out to break, some of your other top stories. the u.s. chamber of commerce is urging senate members to oppose a democratic-backed voting rights bill. the group says the bill which updates voting procedures and states that turn over the redrawingch congressional district lines to independent commissions would punish corporations and associations that engage in political adv advocacy prudential financial is reportedly exploring selling a majority of its retirement business that that's a report from bloomberg the company is working to find potential buyers for the unit. and a senate committee on travel is calling for the federal government to roll out

specific steps to jump start this country's tourism industry. lawmakers are seeking information on when international inbound restrictions would be lifted and they're calling for a pathway for cruise lines to "wlddexcitir sailing activy. orwi ehange" is back after this what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead. we are morgan stanley.

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i really hope that this vaccine can get me one step closer to him. to a huge wedding. to give high fives to our patients. to hug my students. with every vaccine, cvs is working to bring you one step closer to a better tomorrow. ♪ welcome back to "worldwide exchange." to the global vaccine rollout in the wake of yesterday's decision by the food and drug

administration and centers for disease control and prevention to pause all vaccinations of johnson & johnson. moderna saying its vaccine is over 90% effective in protecting against covid six months after being administered the data coming in an update in moderna's face 3 clinical trial. it includes over 900 cases since april 9th. pfizer saying it will be able to deliver 10% more doses than expected to united states by the end of may ceo albert bourla saying on twitter saying due to a rampup, the company can now deliver a total of 220 million doses bourla also saying the full 300 agreed upon for end of july will now be ready two weeks early and the european medical

agency, ema, say johnson & johnson will be delayed in the european union alongside the pause in the u.s for more on the state of the vaccine rollout, given all of those headlines and the broader implications of that johnson & johnson pause, let's bring in dr. patrick moore, professor of microbiology and mikecro genetis at the university of pittsburgh and also served on the advisory that unanimously recommended emergency use of that vaccine of johnson & johnson. dr. moore, thank you for joining us this morning. is it justified, the pause >> good morning. yes, sure is this is what we anticipated. these are the kinds of things we anticipated could happen under this emergency authorization and naturally, what we want to do is to pause and find out more about what the problems are with

the vaccine. and if they're sufficient, then the vaccine won't be given, if they're not, we will re-initiate vaccination. >> so, if that's the case, can you take us through that process when you and your colleagues got together to give emergency use authorization to approve this vaccine rollout, when you look at that kind of a move, how much of it was driven by this notion that we should get it out because the risk reward is much better tilted for this vaccine rollout than for holding it back because there could be isolated cases of these isolateded blood clot issues or anything else that could come down the line? >> yeah, the risk-reward is pretty obvious can i just frame that for you right now in where i live in pittsburgh, there are about 1 million people so, we expect one case of this and if every man, woman and child in pittsburgh -- and children can't be vaccinated yet because they haven't been

studied -- but if every man, woman and child had been vaccinated with j&j vaccine, we'd expect one case and we had 1800 deaths from covid in our population. so, you know, it's pretty obvious that even under the worst circumstances, as of right now, it looks like it's 1800 times worse not to vaccinate, than to vaccinate, that's what the numbers tell us. however, this halt allows the investigators to go and find out if there are new cases and there will be. i mean, i'm quite certain that six cases is not all the cases that have occurred and we will probably see other side effects we want to know what those side effects are. and then people will have a better sense of what the risk is, compared to getting covid.

>> doctor, how important is the messengering and the communication strategy around this kind of thing to the overall picture? i'll say this, doctor. i got vaccinated i got my first shot of moderna not that it should matter what brand or make. i get my second dose next week i get all of this understanding the risks and factors that go into it. but there are folks out there who believe as though they don't want to get vaccinated because they don't trust in the safety and efficacy of these types of vaccines being rolled out as quickly as they were you cannot blame them. i signed a form saying i understand i'm taking a non-fda medicine or vaccine that was approved for emergency use how exactly do you then convince people, given this kind of development, that the vaccines are the right course of action to take? >> well, i think most sensible people -- there are people that you just won't be able to convince

there's not much you can do about that but most sensible people will wonder, you know, can i trust that the people who are in charge are really looking out for my health? and i think that this is a very good example of that where even though everything we know about this episode says that it's better to vaccinate with this vaccine than to not, we still are halting it because we want to be absolutely sure. so that only increases our trust. i would think, that makes me think that the people that are in charge are competent. and are looking out for our best interests. >> how quickly do you think that we will lift this pause for johnson & johnson's vaccine? i mean, how quickly do we think that developments will progress to the point where johnson & johnson's vaccine, those jabs will be administered once again to kind of participate in this vaccination effort

>> well, we hope really soon the folks at fda and -- they're bringing in the cdc, they're very quick, and they're very good but it still takes some time, perhaps a week maybe two weeks, three weeks i hope that they can reach a conclusion and have enough information to be able to make the decision within that period of time. >> dr. moore, is it your opinion that the u.s. vaccination effort is going better than expected right now? >> right now, yes. it started off very, very rough. i'd like to see it go even faster i mean, the only thing that's going to end this is getting a good safe vaccine in everyone's arm. and until that happens, we're going to continue to have outbreaks of covid and it's going to -- it could potentially get much, much worse.

so, i think that we're in a much better place than we were when the vaccines were first started to be approved in december >> all right dr. patrick moore, professor over at the university of pittsburgh thank you very much for joining us with your expertise this morning. please keep us posted on your developments >> thank you later on this morning, dent miss meg tirrell's live interview with the creal of moderna. you can catch that on "squawk box," 7:00 a.m. eastern time, another must-watch here on cnbc. on deck with the show, we're awaiting quarterly results of several big banks as earnings kicks into gear. we break down what investors need to watch coming up. if you haven't already done so, subscribe to our podcast on aioud format, check out our podcast formats. we'll be right back.

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>> welcome back to the show, futures indicating what could be a higher opening in the opening bell the dow jones higher by 21 points, nasdaq, 28, s&p 500 up by 5 let's take a look at the themes and sectors you need to keep an eye on in weeks ahead. check out what's happening from a specter perspective from the s&p 500. over the course of, say, the last six or so months we've seen value stocks outperform stocks by a wide margin 28%. that value trade has been a theme since vaccines came into focus in fall of last year now, take a look, though, at some of the sector performance in the shorter term here over the last one month, technology has reaffirmed the top performing sector. and laggards there with the

momentum change, short term, that reverses some of the trends over the last six months now, take a look at some of the other parts we're watching as well from perspective of maybe longer term jn morgan chase, wells fargo and goldman sachs over a six-month period are severe outperformers. the overall index up 48% j.p. morgue, 74%. each of these stocks joining me trillion assets and cnbc contributor jeff killber cheryl, we'll start with you, are the financials still one of the sectors that you think could outperform in the coming month, like they have over the last six? >> yes >> yes, we do expect financials

to outperform. financials make money from both the spread from short-term and medium-term interest rates on loans but they also benefit from increased loan demand. and we continue to expect this as one of the more cyclical sectors to do well as the economy continues to improve >> jeff, with that in mind, are you as constructive on the financials? we've seen the picture get incrementally better over the last several months for the banks. we've also seen a pickup on capital market activity, not just on the m & a side of things, but trading and whatnot side of things is that enough for trading in the future >> well, dom, i don't know if i share the same enthusiasm that cheryl does on the financials sectors. when you look at wide exposer, you see it up 20% year to date i'm in the camp with the ten-year note drift back to 1.5%

and that will kind of cool the bank's earnings, i do see the bank's financials in the top-ten technical matrix, but nevertheless, the number ten >> if that's the case, cheryl, i'd like to keep it focused here you're going to watch what's going to happen with jpmorgan chase, goldman sachs and wells fargo, what is it that they have to say to convince the investors that the party goes on for those big banks. what is it that investors will perhaps say it's not enough for, hey, there's been a 50% to 70% run over the last six months, maybe it's now time to take profits? >> i think what we need to see is a continued strong interest by those large organizations in keeping risk under control one of the major risks to this would be another archegos or another large whale in the system such as that could lead to a great deal of losses.

we want to see continued strong control. we want to see them pay attention to the communities they're investing in we do prefer regional banks to some of the larger money sectors. we think that strong involvement in the community and strong growth with the community will continue to be positive for banks and regionals >> okay, so constructive for banks, especially regionals there. jeff, you mentioned you're not as high on some of these financial-type stories out there. but are there ones in particular, during this earning season, th you'll try to keep a focus on just to give you a sense as a trader about whether or not the market can still remain constructive? >> well, dom, i think you can put a pep in the step of the banks if you see any rhetoric about buyback. that's a magical word, buyback if we do see jamie dimon from jpmorgan or any big banks talk

about buyback, that will proposal financials into strength but i think the move in the last six months is by and large that the nim, the net interest on margins has driven tell higher i do like financial services i like the tucked mastercard and visa in conjunction with jpmorgan if you look at those top five names that's about a 40% representation we're excited to hear from jpmorgan to set the tone for the earnings season. >> cheryl in your role as a portfolio manager, you're looking for the most effective way to deploy that capital you're looking for the best returns out there. what do you think the macro economical backdrop is we're operating here in the u.s. and by proxy around the world? what does that tell you about where the investments may be coming in say the next six to 12 months >> thank you

our macro outlook is very constructive we think that the reopening trade is going to be very important. but we want to focus on companies that have cyclical exposure but not the most extreme cyclical exposure. we're staying away from high expectation of inflation we anticipate we will see supply chain disruption and we will see spikes in prices but we're looking for companies that have exposure to the economy and we're looking for companies that benefit from moving and transitioning into lower carbon we're looking for companies that participate in hydrogen gas. and building infrastructure for electric vehicles across the country. so instead of traditional aggregates and commodities only, we're looking for economies that participate in the restructuring of the economy to a lower carbon economy in the future. >> jeff, i mean, cheryl brings

up a very interesting word that is infrastructure. it's probably the biggest word that we hear in markets around the beginning of any presidential term out there. it's talked about quite often. does infrastructure and the expansion of perhaps some of those types of projects in the u.s. lend itself fundamentally to any kinds of trades or companies that you're looking at the expectation that we could spend, possibly, hypothetically, trillions of dollars on building bridges, roads and tunnels and maybe infrastructure out there >> absolutely. i think we get excited about that catalyst to move the economy as well as the stock market even higher we talk about the essential names. you hear me talk about the essential names. these are tangible names talk about lock he'd martin, a boeing, 3m or waste management those are all names that should participate in this move higher. but we do see a big and bountiful infrastructure package come through the marketplace so i get excited owning those names. think about the names we've

forgotten about. i'm not walking away from the banks but you do have to be diversified that could make a difference in q2 >> thank you both for being here we appreciate it >> thank you that does it for us on "worldwide exchange. "squawk box" picks up the market and record highs coming up, next hey xfinity, show me disney plus... i'm here on business. i need your help. i've been quested to bring this one back to its kind. now you can access exclusive disney originals... we are an unusual couple. oh i don't think that was ever in question. ...and stream must-see disney new releases!

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♪ good morning, bitcoin surging to another new high. investors preparing for today's direct listing of coinbase, andrew has a rare and exclusive interview with the company's founder and ceo. new data from moderna shows the vaccine is 90% effective six months after the second jab. we have the numbers. and the personal cnbc interview with the ceo plus, more business leaders are speaking out about the importance of voting rights.

hundreds of companies, hundreds, signing a new statement that would oppose discriminatory legislation. details straight ahead it's wednesday, april 14th, 2021 "squawk box" begins right now. ♪ good morning and welcome to "squawk box" right here on cnbc, i'm andrew ross sorkin along with joe kernen and melissa lee becky is off today let's get a look at the market dow up 17 points nasdaq up 25 points s&p 500 up 3.5 points right now. treasury yields right now on the ten-year, everybody is more excited about bitcoin, but we'll show you where things stand. you're looking at 1.639 bu