pause. and coinbase making public debut on the nasdaq yesterday. surged above the reference price. came back and had an $85 market value. big swing in anything associated with it. micro strategy or square or tesla. it's thursday, april 15th, 2021. "squawk box" begins right now. ♪ ♪ good morning welcome to "squawk box" here on cnbc still with the heebie jeebies. the ides of april. otherwise known as tax day

good morning i'm becky quick. why is he doing that oh, yeah tax day. i'm becky quick. joe kernen is here andrew is coming he is having technical difficulties he will be here. u.s. equity futures. >> is that true? or does his alarm clock have technical difficulties >> i think he told me he had technical difficulty he is up and talking to them i missed last week i get it i see him. he's right there he is with us in a second. in the meantime, the u.s. equity futures. right now, things are up across the board. a lot of good news in earnings we are getting more today and we will talk about in a second. dow futures up 146 points after the dow was up yesterday off the all-time intraday high in the section yesterday. s&p closed down 17 points

yesterday. it hit an all-time intraday high and pulled back a little bit this is indicated up 19 points this morning nasdaq which was down yesterday, indicated up today close to 80 points yields were higher in yesterday's session. you see it looks like the 10-year pulled back to 1.615%. the spread is close. 30-year is 2.29. we should pull up the "squawk stack. some of the green arrows you are seeing have to do with the earnings that we're hearing. bank of america coming out with quarterly results early. as a result, you see that stock up 1.3%. coinbase in the stack this morning. up by 10.25% at $362 we are keeping an eye on bitcoin

as well. bank of america reporting the results this morning for the quarter. that stock as you can see is trading higher after the company earned 86 cents a share. both of the numbers topped the estimates. bank of america announcing a $25 billion stock buyback plan saying this will be consistent with fed restrictions. again, these numbers, we weren'ting expecting until 6:45. we have will frost has confirmed these with the company you can see bank of america is up 2.5% for a gain of more than $1 andrew, good morning good to see you. >> good morning. good to see you. welcome back an update now on the j&j

vaccine. paused by the cdc and fda. a key cdc panel met yesterday, but postponed the decision the panel voted to reconvene in a week to investigate six cases of women who developed the blood clots from the vaccine serious. one of the women has died. the pause of the vaccine will remain in place during the investigation. a setback. it continues to remain a setback. we will see what the cdc decides to do and if they allow the vaccine to be given to certain groups of people and not other groups of people and what it means for the supply chain >> the front page of "usa today. what's causing it? we heard some people mention this technical medical terms of heparin with terms of clotting

dr. fauci said be aware. be aware of the j&j vaccine. we mentioned that the other day. should people who have had it and 6 out of millions, but you should be aware what your body is telling you should you take an aspirin for exa example? >> that's the question to ask. >> it is not a bad idea. i don't think it is a bad idea to take an aspirin once and a while. just in general. >> baby aspirin as a daily regimen. >> they do technical difficulties, sorkin what kind of alarm clock is it it's weird daylight saving time issues. sometimes the radio stations and you hit that and it goes between

stations it goes off and you are able to sleep through it what type of technical difficulties did you have? >> i had technical difficulties last week. i can't give him grief >> i'm not sure. i have various technical boxes and things they all seem to be going great and it seemed to not go great. a blip it was a 30-second blip. >> how crazy the tail is now wagging the dog. did you see the stocks micro strategy and tesla and square all based on coinbase. it reminded me of gamestop coinbase is gamestop it was weird yesterday big swing. >> except that bitcoin had gone on the run over 63,000 and came down a bit. >> that was almost 65.

>> right >> at one point. >> i didn't know if it would end the day at 65 or 70 based on the interest around coinbase. >> did you think in the back of your mind that i sure hope -- it has to be real now it has to be a company that deals in it is now worth $85 billion. it is worth $2 trillion in crypto it's established i read a headline that seals the deal of it being a verifiable and real asset class >> go ahead, becky >> i heard brian sullivan referring to coinbase as an exchange that is interesting. you look at it that way and it

is the more valuable exchange than anyone one out there >> balance sheet do you put corporate -- it is hard earned. don't leave it in dollars. put it in something that will hold up. >> in terms of sealing the deal, joe, i think there's been a lot of agreement on this block chain. cryptocurrency has sealed the deal this is clearly talking about block chain in cryptocurrency and different coins used for different things over the next 10 or 20 or 30 years that is definitely real. no question that's real. ethereum will be used. it will have some value. bitcoin will have some volume you. the question is what is going to be the value and how will people value it

>> andrew, if it did become the way for people around the world to have a saving account >> that's the part we don't know >> that's the part we don't know and if it becomes more stable as we get closer and closer to having all $21 million mined as it becomes more stable, does it become used as a currency? it is prettyfrictionlesst the way it works bernie madoff. what a tawdry tale his family man. people aren't shy. they are saying welcome to hell, bernie the devil's money manager has joined him normally you don't see that when someone passes go ahead andrew >> we can tell everybody and i'm sure they know by now.

hopefully they saw the documentary we did last night at 8:00 p.m bernie madoff dying in the federal prison at age 82 he served 12 years of what was going to be a 150-year prison sentence after pleading guilty in 2009 to fraud charges that bilked investors out of $65 billion. the biggest investment fraud in u.s. history he died of natural causes. his attorney said he was being treated for terminal kidney disease. guys, we never spoke about this publicly on tv i don't know if we talked about it privately back in 2016 for the network, i visited with bernie madoff twice in prison as part of the effort by the network and the larger nbc folks to try to get him to do his first televised interview. i sat with him for over six hours.

he ultimately agreed to do the interview, but the prison ultimately disagreed to allow cameras inside the prison. it's a federal prison. there happens to be some other unique prisoners in that prison and i think there was an issue about whether if cameras were allowed in and if it would create problems in creating martyrs of people in the prison. it was fascinating to talk to him. i wish i -- i regret to the day that the public never gotto se him answer the questions not because the answers were revelatory, but because the public could have seen what deceit looks like and created some sense of skepticism about, you know, when you think of managing your money and who you are giving your money to and it

should come with skepticism. he was a very convincing guy he would tell unbelievable stories and you would believe them i remember leaving the prison each time and standing in the parking lot and second guessing it all i never was sure what was truth or fiction that was the lesson of bernie madoff for me. i hope people appreciate not him, but the story of him because i think a lot of us have people manage money for us i think people don't ask enough questions. >> started small supposedly with him. i don't know about that. it got to the point where he was selling widows he still said i'll take care of you. he looked you straight in the eye at times i don't know if that is the true sociopath or whether you can eventually get to that point

if there hadn't been a 2008, would it have happened in 2015 or 2018? i know that he ran a madoff scheme because ponzi has seeded the name of that technique to him. it was a ponzi scheme of all ponzi schemes. it should be called a madoff scheme $20 million put in and paper supposedly worth $60 billion something like that. >> $65 billion >> scott cohn tweeted last night. he had the ckconversations with him with bernie madoff in prison that agreement ended with the death. scott tweeted about the conversations last night the letters he received. he said he never has seen an ego like bernie madoff before. he was still saying even after all of this, after the horrible

things and everything we had seen come out saying the legacy that i've built and things i've done with my family before just proving he never showed remorse on these issues. never seemed to feel bad for the people he bilked it started with wealthy people >> the foundation and blaming people for not knowing he said it should have been obvious to a lot of the street that is true, as you know, andrew and becky supposedly some option writing no exchange handling the option. he looked at it how many times and mark exposed the whole thing years before it came out they want us to move on. coming up, we will talk about the other big stories like

coinbase surging td ameritrade says it had a flurry of retail interest. details are next as we heado ea he tbrk,eris a look at bitcoin trading below the record highs yesterday. "squawk box" is coming right back

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we have earnings out from lots of companies this morning we mentioned bank of america earnings are better than expected it is not the only company beating expectations this morning. hearing from united health earnings came in at $5.31 a

share. revenue at $72 billion the company also raising its guidance united health shares up 1.5% the dow. dow has picked up speed. the implied open for the dow is 161 points up. pepsi is out with numbers this morning. it came in with adjusted earning of $1.21 a share that is better than $1.12. that stock right now up a quarter of a mergepercentage po blackrock reporting adjusted earnings of $7.77. that beats the estimate of $ $7.71. $9.01 trillion for the quarter

larry fink is our special guest at 7:00 eastern time the stock is off by $1 we will talk to larry about what he sees from the earnings report, but what he has been seeing with the consumer if that additional money that has been out there making its way in the stock market and what his expectations are on that that interview is coming up at 7:00 a.m. eastern. joe. thanks, beck the big debut for coinbase stock opened at $381 a share up 52% from the reference price. it initially rocketed higher with intraday high of $ $$ $429 before cooling off at $328. gives a market base of $38 million. the company designed its public debut to attract retail investors. coinbase accounted for 10% of

the equity retail trade yesterday. joining us now is jj kenihan jj, we can talk about crypto and bitcoin in an equity context prior to that, did you need to bone up on everything? you are an exchange guy and you watch all of the indicators in the stock market you have to put on a new hat now there's an equity that is based on trading in these things weird. you ready? >> yeah. i think you have been around a long time. it reminds me a bit of the late '90s with the internet starting. the conversation you and becky and andrew were having at the

top of the show was interesting. as you said, we will see where this goes overall. particularly for block chain the use that comes there i think that you combine this with tesla putting crypto on the balance sheet. two events back-to-back taking it to a legitimate legit company working with it. the exciting part is still to come in the next 10 to 20 years in how this will develop as we saw with the internet. the things that came out first were not necessarily where we are today and nobody really knew where it would take us there is still a lot of regulation around this in terms of how governments will let people ultimately use it and as you said ease of use it is difficult to go into your grocery store and use a crypto to pay for it, et cetera

it is an exciting time there's a lot going on in that space overall. we will see what becomes of it right now, so many, particularly young erier inveinvestors, are d about what is going on >> it reminds me of a lot of things a commodity or gold. i'm not sure how to think about coinbase exchange whether it should be worth more than every other exchange? i guess it is. we have to accept these things teach old dogs new tricks. >> again, it is a different way of people trying to become involved in something to invest in i will say this, overall, we will see the one thing that i still question a lit bill. people are making the parallel to gold. it may be that during a recession or things like that,

it does hold value better than other things it is really only existed as a tradeable product. cme listed futures for a couple of years we will see somewhere in eight to ten years people will be able to trade it. we have not had a big selloff during that time we will see how it performss whn other assets decline that is the next big question that needs to be answered. >> it had indications it was c correlated with risk owned assets we will see. you look at gold and people who have been gold bugs for a long time, j.j. names are familiar everything they wanted to get dp gold to $3,000 it all happened. the fed, we have inflation

fears, you know, times where we had geopolitical issues that teams like gold should move and it has not that is what people are thinking the interest has moved into bitcoin instead of gold. i don't know gold could come back at a any time inflationary aspects a couple of scary reports. ppi. look at that $1,700 when did it hit $1,700 the first time ten years ago? >> let's face it stocks have been attractive during that time you know, the easy money, et cetera, is being in the stock market and the best place to be. because of that, i also think that some of the demand for the commodity, particularly for gold, has stayed depressed we have not had -- we had short

selloffs, but we haven't had any extended selloff i think that is truly going to be the test for bitcoin. >> we have seen the gold and silver commercials running ten years. buy now. ready to go. don't wait thanks, j.j. >> good to see you andrew >> coming up, when we return, new survey data on how people feel about president biden's infrastructure plan. we have details next. as we head to break, check out shares of the carmaker they are looking into making their own chips for autonomous driving for xpeng. "squawk box" returns after this. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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welcome back to "squawk box. the results of the survey are in how americans feel about the president biden infrastructure plan good morning >> reporter: andrew, the first look at the $2.25 trillion plan. the support for raising corporate taxes to pay for it. the plan is popular than the relief bill passed earlier this year there was a concern of corporate taxes. 36% support it and 33% oppose it that is within the margin

oof error. it is about half the level of support received by the $1.9 trillion relief plan americans overwhelmingly support the details of the plan. 87% of the public back the proposal to fix roads and bridges. 82% approve the part to increase care for elderly when you look, 8 of 9 parts of the plans. electrical grid and building out broadband received 70% of the public the least popular part is the tax rebate for electrical cars that has majority support of 53%. 50% of the public says they support hiking corporate tax rate to 28% to pay for the infrastructure plan compared to 42% who oppose it. when we asked generally about

raising corporate taxes, 43% said it is a good idea companies should pay a fair share. 46% worry hiking corporate taxes could cost jobs and raising prices some concern about deficits. 55% say the bigger worry now is the government will spend too much and drive up deficits compared to 32% who say the bigger concern is the government will spend too little. andrew >> fascinating, steve. we will see you in a little bit. we have the jobless numbers and retail sales numbers what should we be looking for? what are you worried about today? >> i want to see the jobless claims start to come down. that would be in line with what we think is going on with the jobs market. retail sales numbers should be strong we are looking to the service sectors of the economy to see how much those are balancing back >> okay.

mr. leisman, back at 8:30. see you in a little bit. becky. >> when we come back, dr. emmanual salesman dating vaccines is the last tool the government wants to deploy in the fight against covid. he'll explain why next as we head to break, let's look at yesterday's s&p winners and losers calling anyone with grit change this, change that, but don't ever quit yesterday's thinking is done from a challenge we never run so keep pushing forward toward a better world for everyone. the future isn't decided yet. it's up to us to make it happen. make a different future start different at godaddy.com

as coronavirus cases surge in several u.s. states, our next guest writes in the op-ed says the best way to turned tide is a vaccine mandate. let's bring in dr. emanuel he served on the president biden advisory board and a policy adviser in the obama administration he is the author of "which country has the world's best health care. thank you for joining us

i was reading in the tease, part of the op-ed is mandates are the last rule we should consider do you mean it is the last tool or it's the last tool? what do you think on this? >> look, you don't want to force people to do something they don't want to do we shouldn't be forcing them if you look at the polling data and the update on the vaccines, we will get 50% or 60% of the people vaccinated. that looks like the eager group. the group that really wants it we will have some low up take. we need to get somewhere between 70% and 85% to have herd immunity and get back to pre-pandemic normalcy. there are places where you are congregating people which should have mandates. students and universities. my university. faculty and staff. health care facility every health care worker should be vaccinated.

i should not have to worry if every doctor or nurse or the respiratory therapist or the person drawing my blood? employers should consider this seriously and mandating workers especially if they are coming ba back to the office. >> i hear your concerns. employers are not doing this at this point universities which said they will require students to come back, most have said they won't require staff. they are worried about getting into it with tenured professors or unions. you can see cause for concern when you talk about j&j's vaccine has been paused and we have seen problems with astrazeneca. there are people who have concerns and now have something to point to and say my concerns are legitimate what do you say to that? >> look, we still have about 1,000 deaths a day in the united

states between 9000 and 1,000 coronavirus. especially among younger people with the spread. this is no joke. we are talking about six or seven or eight cases since march 2nd. over six weeks very seriously i don't think the risks of the vaccine compared to the risks to the country of the coronavirus is really at issue this is very rare. focused on women maybe we will learn more about it we have two very safe vaccines let's remember, most of us, all of us, getting a vaccine is a lot safer than driving a car or the risk of getting covid. we need to put it in the risk context here and bringing people

together at school or bringing people together at the work site or bringing people together at the university those are situations where we know spread happens rapidly. if we want to actually get ourselves back to normal, this is part of what we need to think about. >> you said we have two very safe vaccines. does that mean you are taking j&j out of the running at this point? what damage has been done by the pause and what is the implication? >> i meant we have two other safe vaccines. moderna and we havehave pfizer c are eex trxtremely safe. i think the j&j vaccine is safe. we are talking eight cases between 7 million. what about the age group where this rare clotting and low platelet count situation has

occurred there were 1.4 million -- eight cases is pretty rare -- given the risks we have from the virus and the risks from lots of other every day activities i think, you know, it is a very safe situation i think the white house and the federal government thought they could afford a pause and not a stoppage, but a pause, because 95% of all vaccinations have been with moderna and pfizer we have in the united states more than enough i think the ramifications for the world are a lot different and much more serious by casting doubt on the j&j vaccine >> you are right with the risk assessment numbers if that is the case, why has the federal government been so slow to come anywhere near the idea of a mandate and why do you think employers are so concerned about this a lot of pushback on this and most of the internal polling i

heard about in companies is 80% of the workers say they would be okay getting a vaccine 20% still say they have concerns >> yeah. i think there's hesitancy as long as there is a voluntary group. no one will get out in front all the polling that i have seen suggests that the voluntary group is 50% to 60%. a lot of the people who say they may get the vaccine will push it down to see about other side effects. as you point out, there's a hard core group of about 20% that is not wanting to get the vaccine i think that is a problem to get to herd immunity 20% don't want to do it. 20% on the fence and hard to get and hard to persuade i think we need to get that 20% if we want to get to herd immunity let me say the other important thing is to open up schools.

as the pfizer vaccine seems very effective in 12-year-olds. middle school and high school can get vaccinated i think that is another important group that we need to get the vaccine. >> so, just to be clear, because you are raising an interesting issue. while companies may decide they don't want to make it mandatory and as you know, i talked to quite publicly about how companies, especially large companies like amazon and walmart and others should push or create meaningful incentives to make sure their staff is covered. what would you -- how would you feel about states doing it as you were talking about for schools? public schools and any government worker? that may get you closer to the numbers we need even if you didn't get the private sector to

participate, but the government and then is that a big brother situation? >> i think the government is hesitant and will push the decision down because of the fear of the big brother situation. i think schools are a different thing. bringing people together people want their children educated in person i think we require lots of vaccines to go to school this is no different and this is a very, obviously we have to get the data in children, but appears to be a very safe vaccine. i think that gives the state a lot of control and a lot of justification for requiring this vaccine and in addition to measles, mumps and rubella and diphtheria and pertussis that's a legitimate thing. a lot of lives are at stake if they get infected or bring it home or bring it back into the

school this is a really important initiative they have to protect the workers and protect the public >> dr. emanuel, good to see you. thank you for your time this morning. >> thank you nice to be with you. coming up, day two of earnings season beginning in earnest. earning. bank of america shares moving higher the company has better than expected results from the top and bottom line. a look at the numbers next. later, don't miss larry fink on tay nbeod'sumrs from blackrock and his take on the market "squawk box" will be right back. >> announcer: currency check is sponsored by interactive brokers.

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well have breaking news from m merck. we have meg tirrell with details. >> reporter: merck is developing a pill and a complex drug developing for hospitalized patients updates on both of those this morning. for the pill, the one they licensed from ridge back they will get through the phase three trial in non hospitalized patients they are discontinuing work on the drug because they are not seeing it is likely to work there. similarly, they are discontinuing the other drug mrk-7110 a drug from oncolmmune the pathway to take it for hospitalized patients would be so long. it is unlikely to be helpful in the pandemic

discontinuing that one the peer review has been the drug that people have been watching closely anti-viral and oral drug they are moving it into early stages of the disease in phase three. people within five days of diagnosis who have a risk factor for severe covid that is the setting which it is likely to work the best. they will start enrollment at the end of the month or in may they could have results in september or october depending on the results, they say the earliest possible submission for emergency use authorization could be in the second half of the year. at the same time, they are starting a program to evaluate the drug as prevention essentially the situation where a family member diagnosed with covid to give the pill to other family members to prevent them from getting sick. we are watching this move forward, guys, in a similar fashion to the antibody drugs.

people who have risk factors for severe disease this is a pill this is what people are watching closely. guys >> meg, that's what i was thinking similar to the antibody drugs which also is the rational as iy catch the virus from becoming too prevalentmoving into the lungs where you have that cytokine cascade, whatever you want to call it. kind of an antiyour own body, immune response which kills so many -- which resulting in more fatalities for so many covid patients you get it early, it would work. but if you do it too late, it's really not about stopping the viral replication, it's about where the disease has already progressed in a lot of those cases. >> absolutely. the pathology of antivirals is even earlier and it will be more effective. they said in the earlier studies they've given us the top line

results where they indicate that the drug did appear to result in fewer hospitalizations and deaths for people who weren't hospitalized versus placebo. they also said, joe, importantly, the drug appears to inhibit viral replication which is exactly how this drug is supposed to work if you can give it early, you can stop the virus from really building up and turning into this different stage that they think that it can be helpful >> okay. meg tirrell, thanks for the update stock's not doing much on that news andrew. thanks, joe. we've got bank of america results, rather, out this morning. wilfred frost has been digging through the numbers. want to go straight to him wilf. >> thanks so much, andrew. nice numbers here, 22.9 billion versus forecast at 22.1 billion.

forecast up 66 cents per share similar to yesterday and jp morgan and wells fargo, little bit flatter on the bottom line by provisions for credit losses which was expected to be 349 billion cost instead it was a benefit of 1.7 billion not really seeing the shares decline on that news it's still being taken as a nice beat because that release is not that big and as we discussed yesterday, all of this is a good thing. it's only happening because the outlook of the economy is improving. beats on the capital markets not quite as good as the likes of goldman sachs. investment banking 2.2 million, forecast was 1.8 equity trading 1.8, the forecast was 1.6. one thing that we're going to need more details on on the call is this non-interest expense 15.5 billion that's up 15% year over year up 1.5 billion year over year. the forecast was for a billion

less than that that might lead to having to push up cost estimates a little bit for the full year. details on that to come. details on guidance for net interest income. this for the big banks is the most geared towards the yield curve and perhaps they can boost guidance given the pickup in yields now it's 25 billion stock buy back program and said they have 35 billion of excess capital showing the sort of scope to deliver incremental returns from here going forward justifiable point i will just say again, capital markets is the place to be. they're less exposed to this goldman sachs overall up 100% year over year bank of america's flat and if you look at just the non-interest income, only up 20%. that goldman sachs number again yesterday stands out. >> wilf, thank you for that. we'll continue this conversation right now. we should tell you that brian moynihan will join wilf and the gang at 3 p.m. tiffany mcghee is here along

with sarat sethi tiffany, i'll start with you you heard the banks of america number there is a distinction from goldman sachs on one end of the spectrum and b of a. i don't know where you want to put jpmorgan in the middle there though obviously that was a blowout number, too, in many ways if you could only buy one bank today, which would it be. >> oh, for me it's a tossup between jpmorgan and goldman sachs. hands down if you absolutely make a correct point, there's a difference between these banks and especially when it comes to jpmorgan and goldman sachs, these guys have diversified revenue, right consistent dividends i'm looking at these and actually viewed these as real staples in our client portfolios for quite some time when you look at what they did last year

not cutting their dividend in a really time -- in a time of real stress when you looked at what saved them in terms of revenue, diversified revenue, trading revenue. also some asset management revenue and advisory revenue we're seeing that continue with these blowout numbers versus a bank such as wells fargo that's just so heavily relying on their consumer banking business. so just a little bit tricky. so i really feel like with these specific other banks, the line between defensive and cyclical stocks is really blurred right now. really hard to tell. >> hadey, sarat, give you the se choice do you like b of a, jp morgan or goldman. >> you can change it around. do you want to be in fin --

tech. >> like tiffany, i like jpmorgan they're the gold standard. you know, what i'm looking for is who's going to give me up side in the next 2, 3 years. i think the company you want to look at is morgan stanley. it's going to give them huge leverage i think that's where you want to be the issue that you have with some of these other banks with the trading revenues really don't get the valuation going forward because they're really -- the market looks at it as one time. you want recurring revenue and you want earnings that are going to grow through the recurring revenue. jpmorgan has a huge asset business, so does morgan stanley. bank of america is going to be having a higher beta for you the question i have is what is your loan growth going to be coming forward that's really where they have the leverage that has -- a lot of that has to be dependent on the economy and the way things are going especially with the consumer economy and the businesses start, expanding bank of america will have in the short term

higher up side >> okay. we've got to leave it there. tiffany and sarat, thank you both very, very much talk to you soon becks? >> thank you. thanks, andrew when we come back, the ceo of the world's largest asset manager which by the way just got larger we'll be speaking with lry fink of blackrock next we'll hear what he has to say on the markets. "squawk box" will be right back. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.

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we'll hear from blackrock ceo larry fink plus, the cfo of pepsi joins us on the company's quarterly results and the state of the consumer shares of coinbase are set to pick up where they'reoff after that monster debut yesterday. should investors be weary of the crypto play. we'll discuss as the second hour of "squawk box" begins right now.

good morning and welcome back too "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. futures at this hour show you where things stand. bank earnings, bank of america and others just hitting, dow about 165 points higher right about now. nasdaq looking to open 105 points higher. s&p 500 looking to open 22 points higher. as i just mentioned, bank of america's reporting quarterly results this morning the stock trading higher after the company earned 86 cents a share in the first quarter on revenues $22.8 billion. of course, also a big public debut, a lot of people were watching yesterday and we'll watch again today for the reaction for coinbase. the stock opening at $381 per share. that's up 52% from the reference price. initially rocketed higher than that with an interday high of

$429 before pulling off at $328. we'll have a lot more on that stock's move and the crypto craze in just a little bit as well as a conversation, i imagine, of the president of bitcoin which rocketed close to 65,000 looked like it was going down in the 62,000 range becks? >> thanks, andrew. in the meantime, blackrock, the world's largest money manager is out with quarterly results in the last hour the company came in with adjusted earnings of 7 po$7.77. assets under management, get this, $9.01 trillion joining us right now for an exclusive interview is blackrock chairman and ceo larry fink. larry, great to see you this morning. appreciate your time i have to say, looking through the numbers, one of the things that jumps out the most is the huge number of implodes you've seen with people putting more money to work through blackrock's products

record $172 billion in influence just in the quarter and if you're looking over the last 12 months, you're talking about more than $527 billion in in flows. what happened? where is all of this money coming from? >> high, becky high, joe. hi, andrew hopefully all of you are staying safe i think our quarter reflects the investments we made over time. we've been consistently investing in our future, investing in staying in front of our clients both in the asset management business and our investment technology business those investments are playing out now in terms of deeper, broader, more consistent interactions with our clients. this $172 billion is a reflection of the breadth of our business we saw flows in apac, flows in europe all throughout europe and all throughout the united

states wealth management firms, sovereign wealth funds, pension funds. more and more money has been put to work and yet we still have a record foundation of cash sitting on the sidelines part of our $172 billion of assets that we were awarded, about $40 billion was in cash and about $68 billion were in etfs and the rest was in active flows. we had the best quarter ever in active flows over $58 billion, which $20 plus billion was in active equities. in an industry that's still seeing outflows and active equities across the board whether it was an index or active, across the world, across the globe we saw these type of flows and i do believe it speaks to our platform and this consistency of

investing and staying in front of the client's needs in trying to provide a broad solution-based relationship with our clients. it really is resonating. i would also say these investments, such as the investment we made 12 years ago in bgi when we bought ishares, to give you a reflection on that, when we bought ishares it was $385 billion now it's 2.8 trillion. five years ago we made investments in our alternative business we now crossed over $200 billion putting us in the top five in that business. we raised $11 billion in that quarter in the first quarter across the board here. you know, becky, most people talk about the markets, the movement in the markets every

day. at the very least. talking about retirement the silent prices of retirement. talking about sustainability now. talking about stakeholder capitalism and why that is important and so having a voice on long-term and talking about the perfsistently and consistently has given us that voice and allows us to be differentiated a among financial services companies and not just asset managers it resonates with our clients worldwide. >> stimulus payments in the united states we've heard of all of the

anecdotal evidence some of the stimulus money is going into the markets >> we do not have the relationships. we would put qualified financial advisers in the world. i would say we as a business model, we don't go that last mile having that conversation, specifically with an individual, but of course the wealth management platform at black rock in the united states and worldwide we're seeing more and more flows as evident of monetary m2, the amount of cash sitting on the sideline, much of that cash is certainly being put to work. let's be clear, too. a big reason why there's so much cash sitting on the sideline, during covid and during remote working our behaviors have

changed dramatically think about what the average new yorker, we're all in new york, think about the average new yorker, how much savings they have right now by not commuting. what is it, $400 a month, $500 a month? that's true in so many cities. think about that savings that you have just in your patterns of life, how that's changed under covid. and i think that's a big reason why cash is sitting in the sideline i'm very enthusiastic though, whether the money is coming from a stimulus check or is coming from savings or behavior changes for savings, i think it's fantastic that we're seeing more people either investing for the long term or even trading. if we can get more and more young people to have the enthusiasm to build financial literacy and not just focus on

the tiktok of the market and trading, they would begin even earlier to save for retirement, save for their long-term outcome. i think the dynamics of america will even be stronger and the foundation of america will be even stronger if more and more people can be prepared for retirement and then live in retirement with dignity. >> do you think it lasts though? all of these changes that have led to people having extra cash and then taking that cash and putting it into the markets, i guess i'm asking more of your perspective on the markets and whether you think these highs that we continue to hit are a thing that are going to be with us for a while >> i believe because of monetary stimulus, fiscal stimulus, cash on the sidelines, earnings, markets are okay markets are going to continue to be stronger.

i'm not trying to suggest there are not risks. the greatest risk we have in the world is if a variant is not -- is not -- if our vaccinations do not help us in a new variant the key for all our economies worldwide is bringing us back to the -- to a normal life. having people come back to office having us going to sporting events and cultural events and traveling again in business meetings if we don't have great success in the vaccination and developing herd immunity, then i would say that's probably the greatest risk we have in the world and the success that -- yes, joe >> i was just going to say, larry, that the -- theway that the technology allowed us to develop those two incredible -- all of them, really, but the

messenger rna technology's pretty facile and pretty adaptable. i'm pretty optimistic and we all need to continue to worry about variants and got to worry about any type of new strain of anything, not just coronavirus i would imagine. >> absolutely. absolutely >> so i understand that, but i'm also very optimistic about our ability in terms of medical science to handle that i'm wondering why the acceptance of mmt basically de facto by everyone here and everyone around the world, it sounds like you, you've got $9 trillion, you print enough of it, it's going to be like your 9 trillion's only going to be worth 4.5 trillion in two years. i'm exaggerating you see my point. >> i understand. absolutely. >> it's not that it's a vare yantd, it's just that we've gone wh hog wild and there seems to be

no caution whatsoever about money printing. >> joe, i have that fear, too. i am very optimistic on our technology i am incredibly bullish on the markets and you're right to be worried about our deficits deficits right now are not a big issue, that's what the markets are saying, and they're not a big issue because the amount of money that's on the sideline, the amount of capital that is trying to be put to work, but there will be a moment if we don't have economic growth, if we don't have economic growth that is sustainable over the next ten years, and i'm saying economic growth that is above 3%, our deficits are going to matter and they are going to elevate interest rates at some time and they are going to be probably crowding out private capital. and so you're right in worrying about that i worry about that is that a worry for me at this

moment no i'm sorry. >> sorry to interrupt again, but the growth is going to be -- if rates were to go up and who knows, i can't believe they have not and there's a lot of reasons for that, obviously, but if they were to go up let's say 2 full percentage points, the amount of debt service that we're going to be spending -- >> yes. >> -- that's where you don't get the growth you're looking for anymore. it's almost like self-fulfilling that you're not going to be able to get that growth because too much of what you're producing is just to maintain what you've already borrowed. >> i agree with you. that is a big risk i wish we'd talk about this more because we need to be focused on these issues and you're right to think about it let's be clear, most of the stimulus that we've had in the last year plus is a stimulus to bridge our economy during covid, and none of that money really is

for long-term investing. it was to bridge families and companies. if we are going to do any more stimulus, we need to make sure the stimulus is not for bridging anymore but building our economy and building a better future so we can have that growth. the one area where i do believe we are going to see exceptional growth, joe, you highlighted our success in technology in these vaccinations i'm actually very optimistic about climate -- the issues around climate change and climate risk i am very optimistic about american capitalism and how we are going to solve new technologies for transition risks. it is -- there are estimates that we're going to have to spend $50 trillion to get to a net zero world i actually believe it's going to be less because we are going to revolutionize new technologies and i'm very excited about the

opportunities to focus on technologies to create green hydrogen let me just finish one point i actually believe in the coming years "squawk box" and cnbc's going to be spending time talking about environmental unicorns, these companies that are focused on creating green hydrogen, companies that have new technology for see questering carbon. this is not just a problem that we -- so many people focus on the problem. we are spending time focusing on what are the opportunities what are the investment opportunities? we launched a fund with a sovereign wealth fund on a decarbon mization fund for early stage investing. i'm looking at all of this as a positive. >> hey, larry, it's andrew here. you guys were talking about the debt and how much -- you know, what it means to inflation and everything else, which of course

leads invariably to a conversation we've been having with you now for many years about cryptocurrency and bitcoin. you have been, i think, skeptical, a bit reluctant to dive completely into the pool in part over questions about what regulators will do, et cetera. i'm curious whether this coinbase ipo or the moment we're in has shifted or changed your views about where all of this is headed >> well, i'm still fascinated about it i'm encouraged by how many people are focusing on it. i'm encouraged about the narrative. it may become a great asset class, and i do believe this could become a great asset class. you know, cryptocurrency i don't believe it's a substitute for currencies. i think we're going to have cryptocurrencies of dollars, cryptocurrencies of other currencies, but i don't believe we should be focused -- we should think of crypto as a

substitute of currency but i am fascinated by it as an asset class. i am still watching. i will tell you, of our investors worldwide, we don't have that much inquiry on it we are investing in it rick rieder's been on your show talking about things we're doing in it and we are studying it we make money on it, but we're -- i'm not here to tell you that we are seeing broad-based interests by institutions worldwide. >> right >> you know, i like to say that most of what we do is a reflection of what we are hearing from our clients i would clearly tell you worldwide -- go on, andrew. >> no. no what you're saying though i think is very, very important. i want to put a fine point on it because -- >> please. >> -- you're speaking to companies all over the world and you're saying now that you don't

believe companies have a unique interest in this they're not saying, hey, larry, we're thinking how we can get exposure for our balance sheet do you have a product? can you do something are you thinking about creating a product for them speak directly to that because, by the way, that is the narrative. it's the narrative around, frankly, even the valuations of the coinbases of the world in part because there's a view institutional money is desperate to be part of this you're saying the opposite >> well, i'm not -- we are not having those conversations maybe they're talking to somebody else so i don't want to suggest that we have perfect information, but our broad-based client relationships have -- we've had very little interconnectivity on the conversation on crypto other than a fascination i can tell you, of the amount of conversations we're having on climate risk and how they should navigate portfolios is a major

component of the conversation. the conversations are about deficits and the conversations we're now having on inflation risk is far more dominant with our clients worldwide about crypto let's be clear about why you are seeing more interest about crypto cnbc, you're commentating about the markets and about today. we didn't have any conversations around reddit and gamestop and what does that mean with our clients either yet it represented a major component of the markets it's fascinating to watch. so i do believe there's components in the financial markets about crypto that is real, that is growing but if you're asking me specifically about long-term investing from sovereign wealth front, from pension funds, from retirement services, from big family

offices, the conversation about crypto is a very minor conversation compared to so many other conversations. >> hey, larry, you're on the partnership for new york you're on the executive committee there. the partnership recently came out against tax increases in new york city because of concerns of what that would mean for the flight of the wealthy people or the flight of companies. obviously tax increases are going to happen in new york. what do you think that means what will new york city look like post covid? >> well, i think we're all trying to study how we come back to the office. so i think the question about taxes really is dependent on how successful we are in bringing back our employees back to office safely. we still have great worries about the issues of safety and we as institutions, we have to be ensuring our employees that it's safe to come back to office it's safe to use public

transportation and that question or that answer is going to be really important related to how successful new york city is going to be in the future unquestionably if people feel safe and we open up our cultural institutions and open up our sporting institutions, the vitality of the city comes back and the buzz of the city comes back, we will see people wishing to come back if people are still frightened of being back in the city, we still don't have that vitality, our tax rates are going up, there's unquestionably we are going to see more of our employees wishing to go to our new atlanta office, wishing to go to our seattle office, maybe they want to go to our offices other places in the country. but i am worried about the vitality of new york and let's be clear, the financial services industry, by

evidence of their financial reportings, are doing very well. we're doing very well working remotely now i have some big issues about culture and how do we -- making sure that we -- we're connected so i can spend a lot of time on cultural issues, but we don't have to be in new york we don't have to be in san francisco, our second largest hub. questions are being raised by our employees. questions are being raised by business leaders, where should we -- where should we be headquartered? where should we have our offices that -- where we could attract the best and the brightest young people and if new york doesn't become that because of one reason, whether it's taxes or safety, you know, street safety, then we're going to lose that vitality and then you overlay

higher taxes before we answer those questions, i just don't believe that's the right path to go. and i truly believe this is going to lead to incremental movement of people and businesses away from the city. we've already witnessed in 2020 new york has been the largest outflow of population of any state. now the question is, is that temporal are people going to come back? we'll find out this is not what i would recommend a strategy to revitalize new york. >> is blackrock seriously considering moving its headquarters from new york or san francisco? >> 100% no what we are doing -- you know, we opened up a very large hub in atlanta, and we have already said atlanta is going to be our greatest growth area as an

organization and it will be atlanta right now is, you know, close to 1,000 people. it could be as large as 3,000 people over time so we are -- we want to have multiple locations, and even now remote working, this whole concept of having one hub or one headquarters is just -- that has been thrown out. but we're trying to do the same thing in europe now because of brexit we're doing the same thing in asia and so we're -- we want to be in locations where we can attract the best talent. we want to be in locations where people want to thrive and have families and what we are learning, it does not need to be in one great city, it could be in four or five great cities. >> larry, i know it's a busy morning for you. we do so appreciate you being so generous with your time. thanks for being here. we hope to see you soon. >> great thanks, everyone stay safe please. >> you too

take care. coming up, pepsi cfo hugh johnston joins us in a first on cnbc interview all the technology that we were just referring to, have we found a carb snack that doesn't make you fat? what has pepsi done? "squawk box" will be right back. cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪

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in the ensuing years, he made his riveted waist jeans overalls famous. welcome back to "squawk box. soft drinks and snack giant pepsico reporting adjusted earnings of $1.21 a share. 14.8 billion also beating the street joining us for more in a first on cnbc, mr. johnston is the vice chairman chief financial officer of pepsico great to see you this morning. the numbers did come in better than expected. certain pockets doing better than others. the biggest question is how do you see the international part of the business?

>> we did start on a positive note we continued to grow and now as we've started to collapse some of the pandemic surge we're sort of powering our way through that as well. our expectations going forward is we'll accelerate in the second quarter the back half of the year we feel very good about as well maybe most encouragingly we're gaining share.

mobility factor was ticking up significantly. moving around the rest of the world, latin america, western europe and asia, a little bit more slowly for us i think those numbers are going to pick up as well as sort of the vaccines roll out and people get more comfortable operating in the new normal. >> what about costs? some of the costs are going up and i wasn't -- i wonder whether ultimately you're going to start thinking about price increases. >> you know, as i've talked about before with you all. we are relatively better insulated compared to most of our peer group on that we tend to buy ford at a clip. we are well positioned to handle that as we manage our wages. >> and what about on the drink side, speak to the mix issue

because you know i'm a bubly lover. i live off bubly i know you have competition from aha and all sorts of other people making bubbles. that's a bigger part of the mix. how do you see the mix, if you will, shifting do you think the shift in the mix can ultimately actually create some real growth beyond the sort of 2% that you're landing on right about now. >> yeah, i really do i started with pepsico over three decades ago. back then, it was a pretty simple portfolio of carbonated soft drinks and that was about what we sold now you have such a broad away of beverages for us that represents opportunity. we do have the ability to produce an entire portfolio of beverages. we own our own distribution system we can take it to the shelf. one of the things we have done through the pandemic is continue to innovate whether it's bubly

bounce with caffeine or it's getting into the energy and mountain due rise and lebron james. we feel like there's lots of growth opportunity left in the beverage space for many, many years to come. >> you're one of the biggest advertisers in the country and there's a lot of media companies and media leaders watching right now. how do you see media spend taking place over the third and fourth quarters? do you see a massive ramp across the board? >> i actually don't. a couple of notes on that. one, we never really pulled back all that much last year. we sort of continued to keep our foot on the accelerator through the pandemic there's not as much opportunity to ramp up spending. in the north american beverage space, we've seen retrenchment

in terms of advertising and spending >> in terms of how you're moving and what's efficacious for you, what's working >> like everyone else, we've moved more and more money into digital. obviously smaller brands in particular it's much more effective because your ability to sort of target is quite good. much more so on linear food. that said, with our biggest brands, linear tv still represents the best opportunity to get an roi on an awful lot of channels including yours and including the big events like the super bowl and the like. you can read so many people. with bigger brands -- >> so we have to talk -- i think joe was referring to this. i don't know if this is what you

meant, joe talking about chips. we need to all be able to eat chips that are not terrible. you have high low life. >> i have stuff. i got a care package from pepsi. there's stuff in there, hugh, you are making progress. you're making progress. >> you got them. these are keto chips. >> doritos like. >> they're 3 grams of carbs. really technically 5 grams but you're supposed to take out the fiber piece of it. >> correct. >> how much money are you going to put behind this brand and if we're having this conversation a couple of years from now, is this going to zsh are we all going to be eating these chips all the time does there take over the other part of the mix? i also assume the cost of them given they're made with almonds has to be much more expensive? >> they're going to be higher cost given they're coming from

almonds. consumers will pay a higher price to get these chips you'll see a broader and broader array of products. joe's been asking me about this for a long, long time. with 9 grams of protein, that's a great tasting, joe, as you've always emphasized, as well as -- >> this has nothing to do with the money. if we've got to pay a little more, right, sorkin? i mean, i'll save up i'll cut back somewhere else >> right i think consumers are going to be willing to pay for it, but i don't want you to think it's not just something for joe we also have something for andrew off the eaten path cracked corn pepper. we're going to innovate where it is the consumers want to go. i heard you guys and we pushed products that we think can meet your needs really well they're terrific tasting and they're healthy. >> it's great -- >> merge the two. >> great to be able to ask a whole company what to make for

us, isn't it, andrew can you get pepsi to make something -- >> since we're here, i want a high/low chip that's a toastito. it's not a flavored doritos chip just the tortilla but a high/low can you work on that >> let me take that challenge back to the team >> this came out of our innovation hive. we invented this from less than 250 days we've gotten better at faster execution over innovation. i'll take your idea. let's see if we can run with it and get some traction. >> i'll see you next winter with those dhips on the air hugh, thank you. >> thank you, guys. >> number one, andrew weighs like 130 pounds soaking wet so i don't know why we're talking about this number two, you're going to load that chip up with gawk ka molly and queso.

>> that's why i need to reduce -- >> drinking a diet pepsi with a big mac. >> exactly. >> why does he care? you eat 12 donuts and look the same still to come on "squawk box," a business roundtable coming out for support -- coming out with supports for rebuilding infrastructure but not for president biden's plan on paying for it we're going to talk to the chair of the brt's infrastructure committee on the group stance straight ahead coinbase exceeded the market after the debut on the nasdaq taking bitcoin and ethereum along for the ride is the cryptocurrency firm the future or should investors beware sounds like an on the other hand segment with jon fortt going to break down both sides as he does lye ust a bit. on hcan do it. "squawk box" will be right back.

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some of the companies that can have it. in the premarket, interesting reversal yesterday at this same time they were actually up in the premarket but fell during the course of the session as coinbase was coming public watch out what's happening with energies andinci fanals.

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roundtable's infrastructure committee. it's good to see you you're fifth generation. when i hear bechtel, i think of the things that are impossible to do. i say, no, you can't do that there's craneses on top of a building that's 60 stories high. impossible to go around a river and that's bechtel i understand you want to do infrastructure which makes sense.

>> i would say the bigger thing we're talking about is what's the cost of not taking action. we're already paying a price for gaps in our infrastructure the american society of civil engineer over ten years that's $4 trillion and 2.5 million jobs that people should be having the costs of inactions are going to get worst with times. the nation's infrastructure. fifth in the world from a competitiveness perspective. last year we were 13th so we're going to continue to fall further behind. brendan, this is a rare bipartisan opportunity with popular support as you guys talked about this morning with the polling. so let's get this done it's hard as you said, but we love hard so let's get it done

>> the br 2 is not mincing words and how they feel about it unequivocally. weaken business expansion, hiring, weaken investments in r&d. tax system needs to support all of these things but not through corporate tax. i understand that. tax somebody else. who should we tax if we don't tax -- what's your plan for paying for it, brendan >> joe, i think this is the hard part i would say there are still questions of what should be in the bill what's the size of what we're all trying to pay for and then of course the best way to pay for it yes, there are clearbenefits t business from additional infrastructure investing, but we also think it's unfair to ask business to shoulder or cover all of the additional costs of this public infrastructure investment we recommend there needs to be some balance on the scope and how this gets paid for

the most important thing from my perspective personally iswe need to learn from some of the other countries around the world where there's a balance mix of sources of revenue and credit in some cases that fund sustainable -- fund sustainable infrastructure in a sustained way over the long term there's lots of options for how to make this work. we can be creative we have to keep in mind these investments generate long-term growth i personally would advocate short-term deficit spending and other sources of revenue that are sustainable over the long term unlock private capital asset recycling as an example that's been incredibly successful user fees like a vehicle mileage transfer build america funds. there's many different solutions. the great news is the president said compromise is inevitable. applaud his leadership in trying to find a bipartisan path, then engage in really productive,

promising discussions with lawmakers. >> brendan, i want to talk more with you about all this stuff. just in general about your business because it's fascinating. i'm glad it's not me building bridges and stuff. whew amazing stuff. we'll have you back to talk about ways we can come together and maybe get this done, get the right things done. maybe not everything but -- >> absolutely. let's get it done. >> all right >> thanks, joe thanks, joe. let me second your motion. i'm glad it's not you building bridges, too. when we come back, shares of coinbase are poised to pick up where they left off yesterday. should investors beware? we'll talk to jon fortt about that after this break. we'll be right back. which saved investors over $1.5 billion last year. that's decision tech. only from fidelity.

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coinbase went public yesterday ending with $85 billion. is coinbase the future or should investors beware jon fortt is here to weigh in. hey, jon. >> here's a problem. coinbase makes money when people buy and sell bitcoin and ethereum people are gobbling up bitcoin because it goes up they don't mind that coinbase collects half a percent in fees.

what have we learned from robinhood in 2021. retail investors don't love fees how lock before they under cut coinbase's main revenue source plus, another problem. cryptocurrencies are going to become more mainstream some argue as they get more popular, prices are going to stabilize. as they stabilize, people might trade less that's what happens in the stock market in a weird way the mainstreaming of bitcoin could actually be bad for coinbase that's an exchange based on where it's trading it's more than the nyse three times more than nasdaq i don't think so investor beware. >> of course, there are people who say coinbase is more than an exchange, jon. they say it's the google of digital transactions. >> well, on the other hand, ron conways a smart guy. coinbase looks like just an exchange

google looked like just a search engine apple looked like a manufacturer of expensive computers coinbase is more it may take the technology mainstream from all kinds of authentication and retail transactions coinbase's future isn't just about trading bitcoin, the coinbase stock price is probably doing something similar with nft-backed sports collectibles it got rich off of being smart early. bitcoin and ethereum it could fall in the short term, but it would be a mistake to think coinbase is just a crypto exchange it's more of a bet on a new model of decentralized finance less a rifle to finance and more a rifle to paypal. >> jon, great to see you today by the way, we'll be watching you today, as every day, at 11 a.m. on tech check looking good, my friend. >> thank you. coming up, got a big hour

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the state of the party and his adventures in the marijuana business plus, coinbase surging in yesterday's public debut bitcoin trading near all time highs and the world's largest asset manager just told us this -- >> i don't believe we should be focused -- we should think about crypto as a substitute of currency but it could -- but i am fascinated by it as an asset class. >> we'll have a lot more on crypto with the ceo of grayscale ahead as the final hour of "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures at this hour

are indicating up and they've been up for most of the morning. the dow has been pretty solid from additional good reports after the two record reports out yesterday from a couple of the big, important banks then the nasdaq, which seems it was held hostage yesterday by what was happening with the coinbase debut things like tesla, square, some of the other high flyers were moving with, you know, how the market was treating coinbase so we're going to talk more about that in just a second. i know that we'll have michael sonnenshein on i'm looking forward to john boehner. what do we say -- >> me, too. >> adventures in the marijuana business >> marijuana >> yeah. >> yeah, because he -- he says he's never tried marijuana but he thought it was a good business -- >> i think he's more of a red wine guy. >> he is, but never tried any --

come on, john. come on. maybe he didn't inhale anyway, that's coming up >> citigroup just out with earnings wilfred frost is here. wilf, take it away what are the numbers nice small revenue beat. eps beat 3.62 versus forecast of 2.60 similar themes very strong capital markets and $2 billion benefit on provisions for credit losses versus forecast of $400 million cost and that's the reason for the big eps beat the much bigger news, guys, is they are pulling out of 13 international markets in their global consumer business not in their institutional business not in their private bank global consumer this includes big markets the likes of australia, china, india, korea, russia to name but a few of those markets they will now operate out of four hubs in that region, singapore, hong kong, uae and london this is part of jane frazier,

the new ceo's ongoing review she's focusing on wanting to focus resources where they have advantages she provided me with this quote this morning that says as a result of the ongoing refresh, we've decided we are going to double down on wealth. we will operate our consumer banking franchise in asia and four wealth centers, singapore, hong kong, uae and london. while the other 13 markets have excellent businesses, we don't have the scale we need to compete. we believe our capital investment dollars and other resources are better deployed against our higher returning opportunities in wealth management and other institutional businesses in asia institutional and private bank, they will still be in all of those markets but within the global consumer businesses pulling out of around 13 and this is part of that strategy. new ceo, fresh pair of eyes trying to focus where they have

advantages it is worth noting even though they're pulling out of some of these markets in wealth, they're still pretty big in wealth in asia they'll operate out of the ranks of number 3 in wealth man management institutional business, asia is very important to them and they stay committed in that area. very interesting to see how this is articulated on the earnings call and see how people react. a lot of different analysts have wanted to see them focus rather than try and do everything everywhere throughout. seeing 2% reaction from this news and the earnings as well, guys >> yeah, wilf. you said they're pulling out am solve big markets. the biggest, china and india both in that list. so that is a pretty significant move i can understand why analysts have wanted them to focus more on the places where they have an advantage, but this is a pretty significant move >> very significant. you reiterate the key point,

institutional will still be there. relative to their biggest rivals in the investment banking space that they are very big in asia so they're not needing to pull out of any of those particular types of businesses. in global consumer they don't have as big a footprint in clearly deciding to focus into four hubs. don't forget, pulling out of those markets in terms of a specific presence doesn't necessarily mean you don't do anything in that space they have those hubs as they're calling it. >> right >> it's going to be significant. how much is this going to save them how long will it take to make the transition how much will it cost them, i guess, on the top line as you say, becky, because there are some big markets involved there. it's gaining a little bit more now, 2.4%. i say this is one of the key areas people are looking for it's interesting it comes off the back of goldman who say on their earnings call and various

analysts discussing this afterwards we've seen a snapshot that basically european banks can't seem to have that universal banking model. we've learned that with credit suisse the theme after the last year or so has been focus where you've got your strengths don't try to do everything in every market unless you've got the scale to do so, and i think this fits in with this, that theme we've been learning about. it fits in with what people have been wanting to see with citi and jane fraser acting pretty swiftly, i would argue. >> wilf, look forward to hearing what they say in the conference call up 1.77. that's the highest tick we've seen so far. i look forward to hearing from you after the conference call. thank you. in other earnings news this morning, bank of america reporting earnings of 86 cents a share for the first quarter. that came on revenue of $22.8 billion. both of those numbers beat estimates.

bank of america also announcing a $25 billion stock buyback saying that will be concise doesn't with fed restrictions. up by 1.4% the ceo, brian moynihan, will be on "squawk on the street" coming up -- wait a second, 3 p.m. eastern time i think that must be on cl"closg bell," 3 p.m wilf will have more on that. in the meantime, blackrock reported adjusted earnings of $7.77. triple 7s. that topped the consensus of $7.71. $9.01 trillion assets under management ceo larry fink joined us and here's what he said on the outlook on the markets. >> i am incredibly bullish on the markets and you're right to be worried about our deficits. deficits right now are not a big

issue, that's what the markets are saying, and they're not a big issue because the amount of money that's on the sideline, the amount of capital that is trying to be put to work. >> fink also addressed cryptocurrencies saying it could be a great asset class he doesn't think it replaces currencies he thinks it could be a great asset class. >> thanks, becks we're going to continue this great conversation we're going to talk about the big public debut coinbase closing at $328 it's down from 429, well above what was the reference price kathy woods bought shares from three different funds. $246 million in coinbase two funds sold shares of tesla to do it but it remains the top holding in both. joining us to discuss the implications of the coinbase public debut and what it means for the cryptocurrency world is michael sonnenshein, grayscale

ceo. here's where i want to start i don't know if you had an opportunity to hear the conversation with larry fink >> i did. >> he spends time with the biggest institutions in the world. i have to admit, i was surprised by his answer that he was not picking up a lot of interest from the sort of pennion fund institutional world, sovereigns and the like because we anecdotally hear about that all the time but i do think he normally has his finger on the pulse and i'm curious what your reaction was to that >> i think that we've certainly seen institutional interest in the crypto ecosystem probably over the last 18 to 24 months. it's probably as robust as it's ever been. it's only recently that the cryptocurrency asset class is reaching an inflection point where it's large enough for sovereigns toparticipate in it on that point i'd probably agree with him but outside of that, it's certainly something that's

here to stay what we've been hearing from investors is it's really signaling a certain level of maturation in the market that we haven't seen yet >> and so when you think about where we are, we focus so much on bitcoin, but -- and i don't think there's a question about whether cryptocurrency or blockchain is going to be with us, you know, for the future i think the question that people are so concerned about is the valuation of bitcoin and whether this is something that, you know, goes to a million dollars of bitcoin or some -- or potentially comes down maturely along the way which isn't to say that ethereum or other cryptos really emerge even more than they have already. how do you see that playing itself out over time >> investors are still diversifying into this asset class. i mean, if you look at the number of digital assets that are now traded with, you know, multi-billion dollar market cap,

it's really encouraging to see how many of these projects are taking on a new life and gaining acceptance in the investment community. i think most investors certainly are going to have for the foreseeable future a core position within bitcoin or within ethereum but we've definitely seen that investors are increasingly moving to diversify their crypto future. we have 14 different products at grayscale and there are certain themes that investors like, privacy, gaming, file storage. they're really beginning to see some of the other use cases of digital assets that have emerged. >> but are you thinking of them -- you just used an interesting phrase, digital assets are you thinking of them as assets are you thinking of them as currencies that has always been one of the sort of central questions to the future of this it goes to some degree how you might value a coinbase, for example. for example, if you believe ultimately it's an asset, i'm not saying simply an asset, it's

an asset, then that's a trading business if you believe it becomes a currency, then maybe you start to think of it as a paypal or maybe a fintech company and that's a different valuation. >> i think it's too early to say. in the developed world in the near term use case isn't necessarily going to be for currency we're certainly seeing the emergence of things like we've talked about before, bitcoin being thought of as a digital gold or as a store of value, but as time goes on and you start seeing other application layers built in, you're going to see some of the transactional efforts or the value around world or cross border, et cetera, begin to be unlocked we're certainly not talking to investors about bitcoin replacing the dollar in everyday commerce in the near term. >> so people are buying your product to get exposure to bitcoin and some of these

cryptocurrencies without buying the currencies unto themselves that's for regulatory reasons. where do you think we stand right now? derek gensler was just appointed to rub the sec do you think we're going to get some clarity during this administration new regulations around crypto? >> i do. i really do. i think the regulatory community is as engaged as ever before certainly having folks like chairman gensler leading the sec given his previous engagement with cryptocurrency will likely cause him and the rest of the sec staff to focus on crypto and, you know, again, kind of coming back to coinbase and some of the work within the grayscale, a lot of these companies, us included, are really, really focusing on trying to ensure that we do things right and proactively working with regulators so i think there is a healthy tension

between regulation being, you know, both a risk to crypto overall but also one that we're looking at as an opportunity >> and just so the audience understands, how do you think about what you're doing relative to what mike novogratz is doing in terms of some of the funds they have versus buying some of these cryptocurrencies directly and creating effectively your own basket >> absolutely. grayscale is the world's largest digital currency asset manager we have 14 different funds we now manage over $50 billion so we really view our product lineup really as a family of access products much the same way that investors have access products forex pressing a view on assets like gold or oil or any thematic investment out there. and investors are using combinations of those products in order to create their own tailor made basket of cryptocurrencies i think there's a real use case

for having that as part of someone's investment portfolio certainly investors can buy bitcoin directly, but for many investors buying it through a fund structure is perhaps more attractive because it negates and meets with them, too you have to buy old safety directly the same way people buy gold but also sometimes buy investment products like gld we think it's been a pretty meaningful conduit to get them access and exposure to the access class. >> we have to run. dogecoin is up what do you make of dogecoin, i thought it was originally supposed to be a bit of a joke >> unfortunately, i can't see your screen. no real thoughts on dogecoin it hasn't been an area of focus. >> michael great to see you appreciate it. >> thank you >> joe >> thanks, andrew. former house speaker john boehner will join us live with a

read on politics in the biden era. his reflection on the trump era and his work in the cannabis industry and a list of his most famous boehnerisms i had to practice saying that so i didn't make a big mistake. the biden administration will punish russia over the solar winds hack and it will prevent u.s. financial institutions from buying u.s. russian bonds. you're welcome that's starting june 14th. more details coming up later this morning we'll be right back.

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in his new book former house speaker john boehner dishes on his time on capitol hill, lessons he learned along the way and weighs in on the trump era former speaker john boehner author of on the house a washington memoir. great to see you, speaker. we have seven 34iminutes to tal about so many things if we have time, i want to talk to you about moller. i want to x. i was a bomber you used to beat up on us. were you a starting linebacker

let's talk about this later. you beat up on those poor jesuit preppy kids. >> yes, we did, every year >> you did i'm from price hill. you were in reading. 12 kids. >> secretary oldest of 12. >> and maybe we can get some boehnerisms, too that's how it's pronounced, true >> that's correct, correct >> so, look around and what we see on both sides of the aisle. there's four parties now there's the left, there's the far left, there's the far right and there's the alt right and you basically take the credit or the blame as it were for the split in the republican party to some extent. have i got that right? >> well, i don't take the credit or the blame i inherited this you know, the american people s send people to congress. i don't choose who they are. the rest of congress doesn't choose them. the american people send them.

after 2010 we've got some -- most of the tea party members turned out to be good, solid republicans. we got some real knuckle heads along the way. on any given day i had 210, 215 solid republican votes i always had two or three dozen knuckleheads all they ever wanted to do was vote no. it was either going to be all their way or no way. joe biden's dealing with this right now. he's a traditional democrat dealing with the progressive wing of his party and over the last couple of months he's given the left basically everything they've demanded at the expense of working with republicans in a more bipartisan way. >> knucklehead is such a good word such a good word you can use it whenever you need it but it fully sums up what we're talking about. the infrastructure plan we're talking about right now, you describe that and i'm sure this is because of some influence from the knuckleheads you were

talking about, i'm allowed to use it, maybe not. those are your words it's mostly a new green deal sort of disguised as an infrastructure plan. >> that's correct. i thought i knew what the word infrastructure meant the rest of the world understands what infrastructure means but the biden crew has a new definition for it. it's not going to happen because the votes aren't there and the votes aren't there because it's more than infrastructure, a lot more, and then they want to raise taxes. this is -- this is not the pro scription for getting anything done in washington these days. >> andrew, what have you got there are a million places to go. >> there are a million -- i wanted the speaker just to weigh in on what we've been seeing in the business community in terms of these voting bills across the country. a lot of businesses speaking out

quite publicly against them. you had mitch mcconnell come out and effectively criticize the business community which typically has been aligned with the republican party i'm curious how you see that playing itself out >> well, listen, these days corporate america has pressures on them just like politicians to speak out about this and that. they've got to answer ultimately to their shareholders and having served on corporate boards, still serving on some corporate boards, it's the shareholders who are the investors that they have to answer to. >> is it -- what is the republican -- is the republican party the party of donald trump? is it totally fractured now? it's never trumpers versus trumpers what's it going to look like at the next mid term and what do you think? will the republicans, a slim majority now and they did better than people thought. if you were still there, would

you be speaker then or will speaker pelosi still be speaker in two years >> well, listen, i think republicans have a good shot at winning the majority in 2022 redistricting is coming. republicans will gain 7 to 10 seats as a result of the new district lines listen, i'm a republican i believe in republican principles fiscal responsibility, strong national defense and if republicans focus on who they are as republicans and focus in on the principles of being a republican, guess what i think it will unite the party much closer than anything we've seen for a while you know, the democrats have the same issue between traditional democrats and the far left wing part of their party. this is american politics today. it's as divided as anything that i've seen. as a matter of fact, i would describe politics today as chaos because that's what it is, chaos. >> yeah. your views on cannabis have

evolved. is it the medical side of cannabis that initially attracted your interest? but not just that, you think it should be decriminalized is that your view? >> listen, i was always against cannabis i thought it was a gateway drug. i watched state after state approve the use of cannabis in their states and, you know, somebody in politics, you have to pay attention to what the people are saying and by the time i left office i thought to myself, my goodness, i drink red wine, i smoke cigarettes somebody wants to have a joint, what the hell do i care? then i got interested in the medical side of this, kids having seizure, now cannabis was given to them. soldiers with ptsd or chronic pain problems where they didn't want to use opioids. that's what got me interested in this and then i've watched now 36, 37

states approve the use of cannabis it's time for the federal government to get the hell out of the way. >> right speaker, i wish you didn't have to write a book to come on here. you make a good contributor on one of these cable networks, i think. you have a lot to say. there is the book. we won't have time to talk about jerry fouth. xavier did better than when you were there we beat moller don't pretend like that's never happened. >> just remember one of those boehnerisms. if you do the right things for the right reasons, the right things will usually happen don't worry about it >> mr. speaker, thanks for coming on. really, i would like to have you back and talk about a commentator on politics today. thank you. >> well, we'll see >> okay. all right. doesn't pay a lot. andrew >> i think that was a

non-answer we've got weekly jobless claims and retail sales just hitting the tape rick santelli has the numbers. rick >> reporter: yes, they're very good numbers we start out with empire manufacturing at 26.3, that's the best level since 26.6, that was october of 2017. on initial jobless claims expecting a number to challenge 700? not only did we challenge 700, we challenged 600. 576,000 a new post-covid low that follows a slightly revised 744 that moved up to 769,000 also a new post-covid low when it comes to continuing claims. continuing claims moved to 3,731,000. but -- but there was also revision to last month last month actually now becomes the new low. 3,727,000, so that becomes the post covid new low

these numbers are still pretty good all told. now let's go to retail sales this is advanced so it's going to change rather dramatically as we move on through 9.8. almost double the expectations of 5.8 and as you strip out autos, it stays strong at 8.4. autos and gas sales, it stays strong at 8.2. the control number, 6.9. very strong number when it comes to philly fed, this is another april like number like empire 50.2 50.2 that one is easy to handicap in the rear-view mirror, 51.8 was the third highest number ever that takes you into the 70s to find higher numbers than that. 50.2 is super solid. it just isn't necessarily as record breaking as 51.8. how did all of this affect the marketplace? not very much. you're seeing interest rates tick down.

we're at 1.60 in a 10-year we haven't closed below 1.60 since march. this is a super, super important technical area to pay attention to andrew, back to you. >> okay, rick. thank you for that little bit of extra analysis from steve liesman who joins us with his take on those numbers st st steve. >> reporter: yeah, andrew, i'm very excited by these numbers. i'll tell you why. i like my world to be orderly. i like when something is happening over here, it should be reflected in the data over there. the most exciting thing is seeing the jobless claims tick down as rick so correctly said breaking through not just the 7, not the 6, breaking through the 600,000 mark range here at 576,000. seeing a huge drop in the total number of people receiving claims out there i was becoming concerned that this idea out there that maybe

keeping benefits up was -- keeping people from going back to the work force, there may be an element of that, but the idea that we make this big shift tells me that the prior two weeks was a bit of an anomaly. on the retail shift end of the jobs market is improving as evidenced by what we saw in the monthly jobs data. on the retail sales number, it's funny that the 9.8% month to month is lighter than some of the whisper numbers and some of the high frequency data suggesting maybe weeds a be in double digits. one reason that might not be true is the stimulus checks, more went out in the second half of the month that suggests we could have additional strength in the months ahead some of these numbers are absolutely crazy 15% on motor vehicles. let's see, 12% on building materials and supplies gas station sales up 10.9% clothing up 18%. so you see what people do with their checks sporting goods and hobbies up 23%. you have the non-store retailers

thing. 6% what's interesting about that is perhaps there's a suggestion that more people are actually going out to stores rather than spending all of that extramone online or through delivery good stuff happening in the eco economy. one thing i want to mention is inside the empire state index, a lot of big increases in the cost components of those. so that's something to watch we do know manufacturing costs are rising and we're watching the extent to which they're passed along some of this could be inflation in the retail numbers here we'll be watching that to see that we do see rising component costs, rising costs for manufacturers in the empire state index this morning becky, that's the rundown. >> hey, steve, just in terms of those big gains that you're seeing, the huge jump in things like auto sales, retail sales, on those levels, i just wonder how much of that is because of increases in volumes and how much of it is because there are no discounts anecdotally you hear there aren't discounts for new cars,

used cars, clothing, they don't have to discount it. furniture. there's so much demand for those things that we haven't seen sales on so many of those items in forever. >> if i could put a technical sort of umbrella around that question is what we see here is we see the nominal price here. this is not inflation adjusted we will get real retail sales. those are the numbers that will eventually flow into the gdp numbers but if this is a matter of pricing keeping the volumes up, or keeping the amounts up, that will show up in a lack of either decline in the actual nominal amount or an increase depending on whether or not they're actually raising prices. i think this is more volume right here >> right. >> volume without discounts. i think you're right about that. there may not be people that are out there discounting. they may have the supply disruptions things also makes it so retailers don't have to discount because they don't have the goods. the inventories would be

relatively lean. by the way, if that's true, becky, that's another leg for the economy as retailers and manufacturers restock their inventory. we'll watch this we know the this about the microchips >> special announcement. it's called inspiring america. it's especially. an air on multiple platforms inspiration list

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the nasdaq pulled back yesterday. big tech weighing over ann windblad it's always good to see you. always good to talk with you obviously we've been keyed in to the big tech names just the pull back we've seen. do you have worries about any of the names as we head into

earnings season? >> not really. i don't actually look at these companies quarter by quarter anyway i look at the long-term value of the stocks if we look at nasdaq, which is heavy with software companies, enterprise software companies, google, amazon, microsoft, companies like atlasian, other companies that have grown quite large over the last year, these companies are experiencing terrific growth. gertner says this year that software company spend by large companies which are the large customers will increase by almost 11% that's a huge amount of growth for these companies to share so i'm really not concerned about the macro trends around these companies. everyone is still well in process expanding their digital

strategy so i think there'sa lot of up side to all of these talks >> one stock that you don't own anymore, i think it came as a little bit of a surprise to me recently is facebook you don't own that stock there have been lots of questions asked about privacy and you've brought up some concerns just about being able to target companies, the advertising dollars that come back in. we've spoken with other people recently who like facebook because they think there will be a big return to advertising. what would your counter argument be >> well, i think you're correct that there will be a big return to advertising as we see industries come to life. we just talked about some of the numbers out there. retail for example, in this i.t. spend number, retail growth is not even baked in there as an industry in that 11% growth of enterprise software companies. so we will see advertising come back to life but we see more competition there. look at the percentage gain in

advertising that amazon has. i think we'll see that in their numbers as well, that that number will grow substantially companies are looking for a very diversified way to reach the customer and facebook does not have the total ownership in this market that they once had. we'll see other companies coming in as advertising vehicles as well the analytics for advertising, determining how well these companies perform are improving every day. i'm on a board of a company in indianapolis called opti line that looks at how well these companies perform. clearly people are not leaving facebook in droves but they'll be able to diversify those dollars. they'll want to know when they spend dollars on advertising exactly how those dollars reach consumers and that's where these privacy trends tend to work against facebook >> that's what i would ask the privacy commentary that

we've heard from companies like alphabet or from apple, they're pretty clear on those issues, about moving towards giving consumers more control, doing less targeting they seem to be doing okay with that why do you think facebook is in a trickier position? >> because this is what facebook delivers it's a value proposition, targeting. facebook is very, very early on any strategy related to advertising with congress. this is really a huge opportunity for advertisers to be directly in the stream of purchase which is why amazon is doing so well. so i do think that without the targeting that they propose, which they say is their core value proposition, that advertising spend dollars will really be tested against other platforms as well. so this is what facebook says is

targeting is what they can deliver and very minute targeting. >> ann, one of the stocks you do own is amazon, and there was a story yesterday in the wall street journal that delved into the idea that amazon strong arms its partners or its customers, i should say, into using its businesses across many different businesses, to agreeing to tougher terms than they might have otherwise because they risk not having access, let's say, to the retail part of amazon. are you concerned about that it's the type of thing that you hear echoed again and again. when you have washington digging around and looking for new entrants, does a story like that concern you? >> well, stories of any company strong arming their customers really should concern anybody. i mean, really all in all the customer bats last in all of these companies, and the stock market as well

so if there is truth in that, it should start showing up in amazon's numbers again, i think that all of these companies are going to face increasing scrutiny from washington, whether a new regulation whether the new regulations show up that change their business models is a bigger question. but definitely not, we see a landscape here where these companies are large, they are wealthy, they are powerful, in many respects, and abuse of power is something that i pay attention to >> ann, always good to see you thank you for your time today. >> thank you >> andrew? meantime delta airlines releasing quarterly results. we will go straight to phil lebeau, he's got the numbers phil >> andrew, in the first quarter, delta posting a greater than expected loss of $3.55 a share

the estimate, the connecsensus s a loss for 3.17 but let's be clear, that consensus and that estimate has been moving around quite a bit over the last month so this is not a dramatic miss that people will likely trade the stock lower on a couple of other things revenue coming in better than expected at $4.1 billion the guidance for the second quarter is what so many people will be focused on keep in mind that they did swing to cash flow positive in march, at the end of the first quarter, with $4 million a day in daily cash flow, positive cash flow. they expect daily positive cash flow going forward from here the revenue will still be down 50 to 55%. jet fuel, that's a question we will have for the ceo ed bastian in a bit, 1.85 to 1.95 that continues to move higher for all airlines and don't forget, you don't want to miss this exclusive introduce on "squawk on the street" in a few minutes, ed bastian, we'll talk about the first quarter, what the outlook

is, the cdc yesterday saying that perhaps there is a greater risk, if you will all the seats on a plane, for transmission of a virus, and of course, what's happening here in georgia, with the voter law controversy. all of that coming up in just a couple of minutes. guys, back to you. >> thank you let's get to jim cramer and see what he's thinking about claims, and extenuating circumstances and the 10-year is very well behaved and we had that debut yesterday which was worth more than any exchange? suddenly, we all got to do some remedial work. this is going to be something we're talking about for a long time, i think, we better get with it. >> well, look, when larry fink says you might have to get with it, then you do have to get with it, what i have to tell you, what i'm astonished by are these bankers. i think they are at another plane, and if we do get what everyone thinks we're going to get, which is that jay powell

will be forced to give us a rate hike, the leverage of these companies, i got to tell you, none of these companies is expensive. not one of them. and you have jpmorgan yesterday, what a buy i mean come on, it did an amazing quarter and i just think that these are the stocks we got to focus on. you can put coinbase up in there. i don't mind cathie woods says it's okay. cathie wood and larry fink is there anyone else in the world? >> that's crazy. >> right those two, you don't hear put together very often. all right, so in terms of the run that they've already had, it's not too much, in your view, jim, for across the board, because if interest rates finally start moving up a little bit, there's a lot of leverage, i guess. >> that's it so you take what bank of america earned, they earned like almost three bucks, a couple of years ago, they are going, they've added so many clients since then, and the rates are down, i

just think that the idea, let's say they do 3.50, i don't know, look at the stock, you've got all of these stocks selling at much lower multiples than they should be. these are cyclical companies let's stop buying caterpillar and let's start buying bank of america. >> okay. >> too bullish too bullish? i forgot to say that jay powell will end everything and you got to sell everything because i'm not saying it. i don't think it's right he wants to put people to work so do i. so do you. >> did you get to watch boehner? a piece of work, isn't he? did you watch? >> i have to go buy the book look, we always loved him, because he was just a rebel and then i mean he's a rebel. >> ted cruz stuff in there, this is what people said five or ten years ago before we were allowed to say anything, i think every page should be canceled, probably, which makes me want to

read it. >> i ink he's a modern day tip o'neil he's a tip o'neil who worked with reagan and we had such great economic expansion and that's who he is, and i love that i love that, joe i mean i wish i could go out with him tonight does he still smoke? >> you'd like to tip a few, red wine >> in, no, the one thing i wanted to ask him, we didn't have time but my one question i wanted to ask him, ted cruz tweeted yesterday that somebody dropped off a signed copy of that book at his office. i wanted to know if it is boehner himself. >> and he put it in the fireplace. did you see that >> that would be great. >> those two are not having a beer, right? that's what you need you got to go back to the old days where people had beers. except ipas. they have ipas now maybe some turning leaf. i don't know >> jim, a beer >> probably not allowed to say it. >> exactly >> let's have a spac with them

let's have a couple of spacs >> all right cramer, have fun with ed bastian. delta ceo ed bastian will be live on "squawk on the street. stay tuned we'll be right back. ready to shine from the inside out? try nature's bounty hair, skin and nails gummies. the number one brand to support beautiful hair, glowing skin, and healthy nails. and try advanced, now with two times more biotin. lately, it's been hard to think about the future. but thinking about the future, is human nature. at edward jones, our 19,000 financial advisors create personalized investment strategies to help you get back to your future. edward jones.

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welcome back to "squawk box. we want to get straight over to dom chu with a look at the biggest morning moves. >> let's start here, back in earnings move, andrew, for the morning movers we will start with the bigger bank mover citigroup, the shares

up nearly 3% in pre-market citi beat analyst estimates for profits and revenues helped along with a reduction of what it sets aside for possibly bad loans in the future and strong investment banking results it will close retail banking operations in asia and europe. and then shares of united health group. america's biggest health insurer and the most heavily weighted stock in the dow jones industrial average it beat profit and revenue estimates and raised the full year forecast. shares up about a percent and a and a half and pepsico, up fractionally, 40 shares of volume pre-market. the beverage and snack food giant posting better than expected profits and revenues, he hem, hoped along, by among other things stronger growth in north american markets with new snack releases and bubbling sparkling water drinks and i know andrew is a big fan of those drinks. >> we have a lot to talk about

you knucklehead. i will start using that. you can use that any time twitter. knucklehead. you're a knuckle -- you can't get in trouble it's such a good word. for every occasion, i think, dom. >> it makes me feel like it's a comic strip. maybe 20 or 30 years ago >> i think archie people called that. >> yes. >> thanks, andrew, becky, we'll see you soon 10-year just went below 1.6. time for "squawk on the street." >> wow good thursday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber features are up on more solid q1 earnings from delta, citi, b of a, beats across the board on macro, too, philly fed, empire, jobless claims, and retail sales two times the estimates. our road map begins with a landmark moment for crypto though