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

shares of coinbase surging ahead of the open. >> reopening trade, airlines ahead of the return. ed bastian will joins us a few minutes. bank of america and citi earnings this morning, both ahead of expectation, we'll see how the shares perform though given yesterday's somewhat mixed bag. carl >> guys, we're going to dig into obviously the earnings but jim, let's unpack the retail sales number obviously well above, even goldman's above consensus. motor vehicle, 15. furniture, just 6. clothing up 18.1 those checks got spent >> i've got to tell you, carl, it is almost as if everybody has already been vaccinated. people are going places. people are doing things. people are spending. if this is what it looks like with a quarter of the country vaccinated, what happens when everybody gets vaccinated? i mean, you know, retail sales up 15, 16%

i mean we have to start comparing everything to 2019 but you know what, we're blowing away 2019. in some of these numbers so carl, i've got to tell you, it's an amazing moment for the u.s. economy, and jay powell is not killing it carl, he's not killing it. he's letting it happen. >> i know you were mentioning, you were talking to joe a moment ago about why the 10-year is so well behaved in the face of some of these number, not just retail sales, but claims, below 600, the new covid low, and why do you think that is? >> well, i still think, if you look at the commodity research bureau, look at the bloomberg index, which i really like, we're still not back to 2018 levels, on their inflationary index, and i think that means that jay powell looks at that, i think he looks at the fact that oil could be transitory, plastics definitely transitory, liner board not, i like liner board's sensitivity. cars, a problem, because of the

cost of freight. freight is a problem everywhere. but we're not back to where we were as long as we're not back to where we were, why take your foot off the gas >> that's a question that's going to continue to be asked and there are those who are going to continue, jim, to speak concernedly about inflation. you know, guys, we're going to talk - >> the rich people. >> yeah, we're going to talk financials in a bit, jim, and go over the stock prices but i'm just looking for bank of america's slide presentation that has come along with their earnings release this morning. i mean you can see it. i know you probably already looked through it, too the economic recovery has gained speed, they have a slide a slide on year off year payment spending credit spending. debit spending total payments year to date. total payments monthly credit cards past due trend. all looking positive spending and delinquencies and all of the things that you would expect to see. you would expect i guess that that is only going to continue >> oh, yes, i mean you're

talking about a million people opening an account, and another million, another million, they're still hiring 120,000 people but david, if you do get a rate increase, if you get a rate increase, no additional cost, what can these guys earn i mean look, they earned, without all of these new people, not that long ago, they earned almost $3, right now they have all of these new people why can't they earn, i don't know, 3.30, 3.40, the street is looking for 2.60 for next year. >> right. >> for the end of this year. 2.90 2.90 for 2022. that's just nuts, david. it can't happen. i know joe was saying how liberal you can use the word knucklehead. a knucklehead keeps the earnings down here. these stocks turned out to be radically inexpensive and when they're radically inexpensive, you can see why the stocks have to go up even more jpmorgan punished yesterday

because of how good it was wells, because it's so bad, it was loved. so david, i think these stocks, they justify, they are justified in their moves i mean it and they will move more. >> we should point out, it did include bank of america's earnings 2.7 billion net reserve release, of course saying what we all know, improved macroeconomic outlook. >> right. >> and lower loan balances yesterday, you also had that with jpmorgan but with your point, i mean the key will continue to be, are we going to start to see significant increase in loan demand, we can talk both for the consumer, but even more importantly, from corporate america. i don't know the answer to that at this point, jim. >> i still think it's got to happen i think that people are caught, we'll talk to delta, i think a lot of people, a lot of companies were caught like the autos. the auto companies simply didn't believe that the numbers would be that good, and didn't order enough chip, they weren't ready with the demand. i think that these checks from the government, david, they

work and they've made it so people are more confident i think the whole program worked of course if you think it will be wildly inflationary, we don't know, but these banks were the principle beneficiaries of the money that went to individuals and we have to accept the fact that what people did is they spent half and put the other half in bank of america. that's what happened and that's a pretty good scenario for banks >> before we get moving here as well, jim, just give me your take on citi, which we did, we see right there, it looks up, in pre-market, and you know, net income, 7.9 billion, that was $3.62 a share. revenue was 19.3 billion they did return 10.7 billion to capital, common shareholders, repurchasing as many as 23 million shares and the book is 88 bucks on citi what is your take on the quarter? jane frazier of course only recently taken over as the company ceo. >> well, you are going to get, you will be able to guest a boost in the dividend. the buyback is obviously

additive but what i thought was really special. citi's kind of like what ford was like when ford decided to be a car company in every part of the world and therefore, was committed to losing money everywhere, you know, ford was interesting, they were like sticking by the, we will lose money no matter what thesis, which i always thought was a bad way to run a business, david, citi is getting out of places, they're getting out of 13 markets, citi was deeply committed to losing money everywhere. >> australia, bahrain, indonesia, philippine, poland, russia, taiwan, thailand and vietnam. they're getting out, right >> only the moon was missing if you want to lose money in place, i don't know, alpha cemtauri, they weren't ming there. but we got to go on, but the citi deciding not to make everywhere and not putting money in the big dipper, it's a very radical positive guys, back to you. >> guys, don't go anywhere we were looking at delta's

earnings and phil lebeau join us on that point with a very special guest. good morning, phil. >> q1 numbers from delta keep in mind that the estimate was running around quite a bit it was at $3.17 a share for a loss in the first quarter. revenue coming in better than expected at $4.1 billion but perhaps the most important metric, they swung to positive cash flow in march $4 million a day is what they were bringing in let's bring in'd bastian, the ceo of delta, you expect daily positive cash flow from here, it raises the question, and you heard jim talking about it, if this is what the country looks like with only a quarter of the people vaccinated, what can we expect q2 and the rest of this year >> first of all, great to see you in person. >> good to be here. >> and it's great to do this live and i think this is an indication of what's to come, as we start to get our business and our world back to some level of normalcy when i look at the first quarter, what's been clear to us, is that our business has made a turn. and that turn is active and it's

rebounding in accordance without a vaccination, with the vaccination rates are going. people don't necessarily appreciate, 50% of the u.s. adult population have had at least one shot of the vaccine, and 75% of our customers tell us they expect to be fully vaccinated by memorial day so we have seen a huge surge in bookings just over the last couple of months in march, we had twice the amount of bookings that we had just in january, just two months earlier, and that's what led to the elimination of cash burn, the generation of real net cash flow positive, $4 million a day, in confidence, we have to look forward to, and what i'm most amazed by, we're doing this while we're still missing 50% of our revenue base international is still largely closed business travel continues to be quite muted and we're still not selling the middle seat until next month our team is doing a great job. the resilience of the business and the franchise that is coming through here and the strength of the people and the brand.

>> lord only knows when international will come back so let's talk first off with business travel. what's your outlook in terms of what you're hearing from corporations in terms of how much more they expect to send their people out on the road, either this summer, or let's go into the fall and into later this year. >> well, business travel right now is about 20% of what we would expect normally for this time of the year, and what the corporates are telling us is that they're waiting for their employees to get vaccinated, in order to open up their offices so with those vaccination rates continuing to climb, i'm expecting that we will start seeing offices reopen this summer, and i think by fall, we're going to see a pretty significant bump in business travel starting back, people need to get back to their customer, they need to get back to their own people, get out to the marketplace, continue to drive their businesses forward i know delta, here delta, we're planning on reopening our campus officially in the month of june and i'm hearing more and more people thinking about moving those dates up as the vaccination rates continue to climb. >> jim, do you have a question

for ed >> yeah, ed, first of all, i just love seeing you with phil, i did something last week that was shocking, i took a delta flight to mexico city. and i heard someone say, it's an extremely full flight. i thought i could have the plane to myself. the mexico city, i need to know, ed, is it possible that we will have a roaring '20s boom, if a plane already to mexico city is extremely full, isn't it possible that business travelers come back, that we're short planes, we're short gates, that something is happening right now, ed, which indicates to me, this could be the biggest boom in american history? >> i agree with you, jim already, our domestic business, this is going to be led by the consumer clearly, our domestic business, consumer business, is back to about 85 to 90% of what it was pre-covid levels, and that's still with a tremendous amount of concern in the marketplace, until vaccinations

get us to herd immunity. so i could not agree with you more i think the pent-up demand is unbelievable and we're getting everything we can do to get ready to be able to serve that demand come this summer >> and i spoke to the ceos of all of these banks they expect, because other banks are going for customers, they have to go, they're talking about gigantic travel budgets, in q4, are you seeing that in businesses >> we are. we are people know that they need to get back out on the road and they need to be out in front of people. i'm taking a tremendous amount of visitors into our business. i was with the head of one of the large financial institutions that came down with their team to see me yesterday, and the more people see others are doing it, the more compelling it will be for others to force them, not just to get back out into the road, but to get our businesses back open again, we need to get this economy moving. already, it's doing well but it requires the businesses now to start leaning in

>> david faber a quick diversion here from me, to that voting law in georgia. delta of course has been fron and center in what has been a pretty heated debate on the 26th of march, you put a statement out regarding the pass average the bill that was fairly even in its approach you praised some parts of it, you also said you understand why there might be people who are somewhat frustrated and there's more work to do. five days later though, you came out with a statement that was much stronger saying i need to make it crystal clear the final bill is unacceptable, and does not match delta's values why the change in those five days and do you regret having come out with that much stronger statement against the bill >> i don't regret it, david. what happened over the course of that five days, we were finally able to get our hands on the bill this process was done very quickly, without a lot of transparency, and none of us knew, it's 100-page bill, none of us really appreciated and understood all of the elements that were in there we knew there were concerns but when we saw not only what those

concerns were, but we heard from our african-american community, here in the state of georgia, remember, we're the largest private employer in the state, and we've got a very large employee base who's black. hearing their frustrations expressed, we felt compelled to have to express those concerns >> let me play off of david's question with a follow-up. ken frazier, they have drafted essentially a pledge that was put out to corporate america, over the last couple of days, our own andrew, wrote about this in "the new york times," and a number of companys and ceos signed that pledge and we are going to be fight this push for tighter restrictive laws and you delta did not sign that pledge why not? >> i think the statement spoke for itself think our statement was a bit stronger than what that statement was and i talked to ken over the weekend and expressed the fact that we have already made our statement and i endorse what he's doing, i agree

in terms of the tone and the context of what that statement was, but we didn't feel the need to go out yet again with that same theme >> one last question for us, i know we got a busy day, we will send it back to the studio, yesterday, the cdc is out with a study, essentially saying that look, we have looked at the impact of either blocking the middle seat on an airplane, or filling it with somebody, if there's a little greater distance between passengers, there is less of a likelihood of the spread of a virus. this study comes out at a time when you guys are preparing to start selling that middle seat does it give you pause do you have to sit there and say is this the right move right now? >> not at all. that study was based on 2017 data so it doesn't take into account any of the safety protocols that we've implemented. including masking, the electrostatic spraying, the cleanliness of the surface, the distancing we were doing throughout and as you know, would he were the last airline to keep that middle seat open

because we thought it was important, our experts tell us where the vaccination rates where they're at and demand as strong as it is, it is absolutely safe to sit in that middle seat. >> ed, thank you very much good to be down here where we are is the delta museum, a vaccinate site, there are chairs all around here and you're doing about 5,000 a day. >> collectively on the cam pufs the airport, 5,000 vaccinations a day at our site. >> good to be down here and to talk to you in person. carl, i will send is back to you. >> all right, phil, great to see you back on the road phil lebeau in atlanta. let's getindustrial production rick santelli. >> let's go. industrial production for the month of march is hitting the wires, up 1.4% definitely a disappointment. we were expecting a number closer to 2.5% and then in the rearview mirror, we actually increased last month's negative number from minus 2.2 to minus 2.6. >> on utilization rate, also a disappointment 74.4 we were expecting a number

closer to 75.7 and this follows a downward revision last month as well. 73.8 to 73.4 so manufacturing for the month of march, definitely disappointing a bit, but it is the only number today that seems to be aiming in the disappointing direction. whether it was retail sales, or initial continuing claims. they were much stronger than expected carl, jim, david, back to you. >> all right, rick, we will see you for more data at the top of the hour take a break here. futures look pretty good dive into more of the earnings today. and more research calls as well, including more initiations of coinbase, some price target increases for goldman, a downgrade of intel back after a break

a bit of a rollercoaster debut for coinbase yesterday opened around 380. currently 344 pre-market the co-founder was on the closing bell last night talked about the criticism that crypto is simply too volatile to be investable >> as somebody who has been working in crypto for ten years, i've heard that statement hundreds if not thousands of times. i think the reality is that if crypto is to achieve the huge mission that i think it can, which is being a new global digital money financial system, and internet app platform, there is bound to be a lot of volatility along the way >> jim, we talked about the moffett note earlier in the week

where they see a 600 target. today btig with a buy and a target of 500. first mover advantage and an on-ramp for mainstream crypto investors. >> i tell people that they should buy at the opening and wait to see if it came down, and it did, but i still think that, yes, that the $600 price target that moffett nathanson has, i think it's right, this is all a scarcity, carl we don't have any other way for a mutual fund to be involved with crypto. and this way, you get all of the crypto and you also get, i mean here's one for you honest management. i mean i find that to be a pleasure, carl >> were you at all dismayed or did you think, did you find curious, larry fink's comment this morning on "squawk" that at least at this stage, the conversations that blackrock's having with clients about crypto is in larry's words a very minor

conversation >> well, yeah, i mean i did a piece this morning, just saying listen, it is really a side show, versus say what bank of america and citi and jpmorgan are doing, what wells is doing, and i did something, david, i decided to become an impostate and after you and i had that discussion of no one ever selling bitcoin, i went out and bot a lot of bitcoin at 12, because i thought it was a currency at 12,000 and i know people are going to be angry at me but i paid off a mortgage yesterday with it. i don't know, is that dangerous, david? i actually sold some now, from the chart, david, i may be the only natural seller but it was so great to pay off a mortgage it was like, you know, phony money, paying forreal money. what do you think? >> let me back up. you bought bitcoin at roughly 12,000 and then you sold it yesterday at 63, 64. >> no i sold half. >> i sold half >> half. >> half. all the way up

and then i took that money, which was the money i got from bitcoin, and david, i paid off a mortgage a real mortgage. >> in real dollars. >> i got from a bank. >> got it. >> so now i own a house, lock, stock and barrel, because i bought this currency. >> did you very well. >> i don't know. >> on your ownership of bitcoin. >> i don't know. >> yes. >> cathie wood, a big fan of coinbase as well 250 million or so in purchases yesterday from the ark fund. >> yeah, 750,000 shares. she trimmed some tesla we'll get into that after a break as we get to the opening bell in seven minutes. n'goway. wealth is your first big investment. worth is a partner to help share the load. wealth is saving a little extra. worth is knowing it's never too late to start - or too early.

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pretty much what the bulls would ask for on a good day. futures are green. retail sales and jobless claims. good q1 earnings and a 10-year yield at 1.60 which is almost a one-month low or so. up omite ia e opening belln colef nus.

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we are going to squeeze in a mad dash and get to the opening bell in a minute from now. you can't help yourself. intel, amd you keep wanting to come back to that, don't you? >> well, a lot of people are interested in those stocks, david. that's why i gravitate to them i can talk about coinbase. i can talk about ethereum if you'd like me to yes, raymond james takes intel to a sell. upgrades advanced micro. and then takes nvidia to a super duper buy, david intel, they're talking about

paying monthly to endure in pursuit of their goals, my forecast is pain, not unlike mr. payne. >> i guess everyone was listening. i think carl, they were taking their cue from cramer it sounds like >> guys, there's the opening bell at the big board. an imz at the nasdaq autonomous truck company too simple we will talk to the ceo of the ipo in a little over an hour and speak of autonomy, i'm sure you noticed walmart, taking a stake in gm and the autonomous efforts, self-driving car company, way-mo, and so forth, and a big boat of confidence, and a signal, domino's delivering pizza, chick-fil-a testing delivery, through autonomy, picking up steam

>> the nvidia conference call, the analyst day, jensen wong, the da vinci of our time, i was going to say michelangelo, he feels like he has cracked the code of autonomous when i visited out there, they still hadn't been able to figure out black ice. black ice is the biggest problem. i think they solved everything and autonomous is finally here and david, it makes me want to own uber because they become less of a taxi service and more of a tech company, which makes it so that uber's the big winner of the mary barra and general motors what do you think of that thesis, david? >> i like it. >> you do? >> at some point we will have fleets of autonomous taxys or autonomous cars being used of course to the full extent of their economic value as opposed to what is sitting on the street or the parking lot most of the time and there's another name that comes to mind when you talk about autonomous, and it's probably got the biggest lead,

still many would say, maybe you heard this company, tesla. >> yeah, but cathie wood sold some, david. so i don't know. i mean she sold some so isn't the magic gone? to some extent >> she's bought some coinbase, right? >> she broke the promise of so many people i follow on twitter. i don't know >> but jim, in all seriousness, tesla has certainly, the bulls would tell you, has advanced a great deal, in autonomous. that's the potentially goal there as well. and that kind of sums up things you need to believe, to believe in the market value that is once again above $700 billion for this company and just to point it out, roughly nine times that of gm. >> well, look, it's not just hands free, david. it's the idea that, and this is something that they told me at

way-mo the baby boomers are turning, i don't know, what do we turn? we're turning to the point where we're worried about driving, okay that's millions of people who need autonomous. millions so i think this is a much bigger market than people realize and it's really focused on the boomers, not focused on, just on domino's one day you'll be a boomer, and you know what, you'll want autonomous trust me >> i'm ready i'll be ready pretty soon. one day i'm old. you're either a boomer or not. and you're a boomer but we will one day both be old. let's hope. >> and when they talk about way-mo, when they talk about the demand, it is really the boomers and not just people going and taking their morning commute, which by the way has probably been dinged by covid, so carl, i think it is a very real thing and it has to do with infirmities and people who shouldn't be driving who suddenly can't be driving and let's not forget drunk driving

and stoner driving once we approve cannabis drinks, so i don't know, there is millions -- >> stoner driving? you like that. >> you like that the mental quarantine. >> the old-fashioned way you're right >> look, america's ready for stoners. we don't call them that, we call them cannabis drinkers cannabis users but this is stoner driving and you need, carl, you're going to need selfdriving when you have stoner driving. >> well, you got 40% of the u.s. population living in states where it's now legal for adult use. so we're definitely getting there. i do want to get you on, speaking of autonomous, and nvidia, taiwan semi, with some of these comments about the chip shortage, by the way, they lift their revenue growth target by 20%. but they do say even though they're trying to boost productivity as best they can, the tight supply will continue into next year, which is quickly

becoming consensus. >> they need, they're going to go from 28 billion in cap ex to 30 billion well, where? i mean everybody's sold out. it isn't like you can call lam research and say hey, guys, can you generate a pew, a few more of those machines we need for capital equipment? there's a line if you ask for what a shortage is, the shortage is not with chip, it's the machines that make chips and applied materials was on "mad money," and they think they have enough money, but it's lam that, they think they have enough machine, but it's lam that i think is the jewel of the group and you need more machines from lam, carl, and you're not getting them. goit to go to david. but look, applied materials is much too cheap, david. >> i want to say kind inform this area, guys, at least. let's start with dell. >> glaxo >> no, i'm going to the two deal, one of course is dell, which we've known about but the stock is responding positively, a spinoff of the stake in

vmware they laid it all out for us. vmware holders a cash dividend of 11.5 to $12 billion it won't take place, we first told you about this, this summer, and it will only take place until after september, it will close in the fourth quarter, because of the tax reason, they couldn't even think about doing it prior to september of this year dell though, of that, given they own 81%, will get about $9.7 billion, and it is expected to close in the fourth quarter. but what you're talking about is the shareholders, you're going to get 0.44 shares of vmware for each dell share and the current estimated value, less the impact of the special dividend, per share, of 27 bucks, that's roughly 0.44, equals 56. no change to the number of dell shares outstanding shareholders there, the economic interest of dell, excluding the vmware, plus the 9.3 billion in proceeds from the dividend, implied value post-share distribution they say is about 38 so roughly 4.7 times trailing 12

months adjusted ebitda you can see dell is responding positively to this as it has, i mean if you take a look, plus, its business has been quite strong over the last year, but you can see, wow, 32%. and then jim, i want to, a couple more things, but i certainly want your thoughts on this temo acquisition. thermo it is a large one. 17.4 billion before debt 4 47.50 a share for ppd. a 40% premium to the close the other day. they're saying it will be accr accretive but really what it is setting the company up for now is end to end for the biotech industry, in terms of, okay, you come up with the intellectual property, you do the science, you give it to us, and now it's not just we give you the chemicals and the labs and all of those things, but now, we do the manufacturing and we do the testing. right? this is a company that did the research trials for moderna. and their covid vaccine.

and so i know you don't question mark warner, mark casper, excuse me, mark casper, and few shareholders do as well, do they, jim, given their track record of success, when they do large acquisitions >> going back and forth with mark capser, and one thing is certain, david, this stock is reacting the way it should, they've got so much cash, they're gold standard pcr machines that they've got to put it to work, and this is a genius deal, because the more that this market stays vibrant, the more biotech companies come public, and there are so many, the more that they have to do trials, and doing a trial is a lot better than doing a drug. because they get paid, david, whether it fails or succeeds so i thought this was brilliant. david is, there any change that this could be blocked? >> no. >> you know that thermo has tried to do some deals >> in this case you're talking about a company that was once an

lbo. it has since come back to the public market sometime but carlyle and heldman and freedman who took it private still own 53% and i'm told the two of them and one additional shareholder, they have 60% of the vote, consent for 60% of the vote. it's done. they're not going to be, there's not going to be a question in terms of a shareholder approval or being held up in any way, jim. so on this one, thermo fisher tied it up ahead of time given the ownership profile of the company already was in the hands of two large shareholders, it was essentially sponsor controlled, given they had taken it private, and then back to the public markets but that's a good point. i mean listen, it's a serious multiple of revenues, a high margin business, but 4.7 billion in revenues, 17.4 billion equity value, over 20 billion enterprise value, it's not, you know, they're paying a decent multiple here. >> but it's a turn-key operation, david what will people do, to be able to just make one phone call, send the drug over, and get it

to work, and i just think that mark cassper once again has demonstrated that he's got a vision of what has to happened in this world, and remember, he did have, he was the first to be able to have something that made us know whether we have covid orb not. and i've got to tell you, he has so much cash, he had to put it to work. high quality problem, david. but this is, look at this, spent 17 billion and the stock goes up >> look at that 10-year. look at that 10-year that is supposed to be the way it work, right >> yes. >> look at him bit danaher is the same, remember. >> a similar chart guys, before i'm done here, let me quickly come to something i've been following now for over a year, which is, well, now merck's development of an anti-viral drug, and we got a press release from merck early this morning, updating us on the progress they're making, an update on the clinical

development, the oral therapeutic for treating mid to moderate covid-19, as i pointed out many times and others developed as well, it could be a key for us because it is not as though the virus will ever fully go away unfortunately, it will always be there, we hope to bring it down to very low levels, nonetheless, with variants and that being a fact, you are going to want to have an anti--viral available that will knew knock down the virus quickly. so far, so good. phase two-three trials they are now moving, they are sort of, you know, the trial design, they're moving to sicker people being enrolled, maybe hard to find them in the u.s. because you're looking for an over 60 crowd to a certain extent, many of whom have already been vaccinated, but it is a worldwide trial and this is still an important drug and we got that update, jim, perhaps you get something here, in terms of the data, by the fall, and then you get a quick approval. many would love to see it on the market if possible. and if it continues to play out the way it has, in terms of, again, in early covid, and

moderate, it's not for people in the hospital, and they've even sort of abandoned that part of it it's when the virus first hits, knocking it down quickly, and reducing any effects of it and the ability to transmit it carl >> all right, it's going to be key, guys. especially if you believe dr. gottlieb who told npr yesterday that it's going to be hard to get demand, jim, he thinks, above about 160 million vaccinations, he thinks it's going to be hard to get past that number given the hesitancy that's baked into the country right now. really quick, jim, on coinbase, still trading below yesterday's open, but what do you think constitutes success right now, in terms of price for a new issue like this? >> well, i think that there are a number of people who feel that there's just no, that it has to be bought every single day and so i don't think it necessarily has to go up 100 points, but i think you're going to see people put money to work

every day, and it's going to end up being like palantir, palantir did a deal that had everybody excited and then it broke down, and then it just was nonstop and a lot of that was, i mean we make jokes about it, i don't mean to at all, is cathie wood, buying it every day and then you get her analysis, you get her list of what she guys, at 6:40 p.m., between 7:00 p.m., and she was buying palantir every day, and look what happened, it went to the 20s so carl, i think that every day, you're going to see at 6:40 p.m. that she's bought coinbase and every day she does, it then i think the meme crowd goes and buys it themselves >> all right guys, tech is definitely in charge this morning. up about 1% plus record high dow. record high s&p once again the vix below 17 let's get to bob pisani. hey, bob. >> hello, carl a great start to earnings season. three to one advancing to declining stocks take a look at the sec tors. they're really not what's

critical, the tech is leading the way, the growth sector, and defensive and health care and consumer staples strong. energy weak. banks a little weak. this is typical. once banks start reporting, they're normally weak for a few days, into reporting season. i wouldn't be concerned about that what's amazing here is remember the gain they believe analysts have been underestimating the earnings so far they've been right and so far spectacularly right. look at today's numbers here the u.s. bancorp, bank of america, citigroup, united health, pepsico, nobody got it right, the highest number of any analyst was way below the reported number and most have 20 or more analysts and way off, and they didn't even hit the dart board let alone hit the bulls eye and that's what moves the stock market forward and we knew they were too conservative, but wow, they're really too conservative, that's why you get the stock market moving forward here if you look at the actual reports, what the stocks are doing here, you can see it's sort of a mixed bag, there's

been a lot of discussion amongst the analysts and the banks, it's very noisy with the bank numbers here most analysts prefer to focus on long growth, net interest income, which is fair, not great, obviously, instead of reserve releases, or other things like trading activity, which is very noisy. so that's why you get the banks kind of moving around. but unitedhealth, pepsi moving to the upside here reminding everybody what moves the stock market what moves stocks. four principle things. until one is earnings whether they're going up or not. and they are they have been increasing. number two is dividends. and whether they're going up and they have been increasing. number three is changes in the multiple, the p/e ratio, right now i would call it table. at about 21 to 22 times forward earnings and finally a lot of people like to look at liquidity how much money is there to buy stuff around and that is very high. that this is why the stock market is high right now because these factors are all aligning as for reported earnings, larry fink was on this morning, and i want to give you just a sense of

how big the big people are getting. and nobody's bigger than blackrock. $172 billion in inflows. an amazing number. we're talking about all asset classes. etfs, everything but that's in a quarter they got, they took in here the i-share, etf business, 2.8 trillion that's almost 60% of the value of the entire etf business in the united states. one company controls about 60% of the entire etf business that's amazing and larry fink made that deal many years ago, one of the greatest deals in the history. assets under management, $9 trillion think about that $9 trillion. investors in blackrock have been very richly rewarded you can see those shares have doubled since march. and looking at the retail sales number, if you don't think the reopening is real, take a look at these number, sporting goods up 23% gasoline up 11 and my favorite restaurants and bars, up 13% that reopening is very, very

real carl, back to you. >> bob, thanks. we got more data on the way as well. let's get back to rick santelli. hey, rick. >> hi, carl. indeed we have more data coming out at the top of the hour. let's pay very close attention towhat's going on in interest rates. because it's very counter-intuitive. look at train-day of 10. yields are moving down why would they move down you heard bob at 8:30 eastern, retail sales were great, nonseasonally adjusted number force retail sales were even stronger and claims were good and the only thing that wasn't very hot is the industrials here and as you can see on the chart, all of the action was right at, and slightly before 8:30 eastern. i'll tell you what's going on there. it's technicals. look at the two-day of 10s it answers all of the questions. and we try to bounce high enough, and b, we're so close, it was like a magnet flowing this way, and we haven't closed under 1.60 yield since the 11th of march, as you can see on the next chart and the dollar index, dollar

index is following interest rates. there's the one week of the dollar index really getting crushed the last couple of sessions it looks to be closing at a one months low, as you can see on this chart, it seems like march 11th is a big day, not only for the dollar index, but for interest rates as well carl, jim, david, back to you. >> all right, we'll see you in a few minutes, for more data. in the meantime, as we set record highs for the dow and the s&p 500, as we get some tail wind here from macro and earnings back in a moment all the things, all around you where you learn, work, and fly we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader in making spaces cleaner, from the things you touch to the air you breathe.

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. the banks not really participating, the financialing as a sector are road as loan growth is challenging, net interest income obviously a little bit weak, and the ten-year yield below 16. more "squawk on the street" continues in just a moment

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let's get trading with jim >> yeah, carl, cdc and really nih, both have really been not pushing regeneron's drug, the drug that saved the president's life, you could argue, previous president trump. gretchen whitmer, she's the governor of michigan, she has

the worst problem on her hands, talking about using regeneron to keep people out of the hospital. i do not understand why the cdc is not talking about this drug and how hard it is to get. some doctors can't prescribe it, many hospitals don't have it gretchen whitmer says this is the hope, regeneron, i agree with her, and think that stock should be much higher. >> jim, currently up about 3 1/2. what's up tonight? >> american eagle outfitters, never does tv, and yet they had what is by far the best number of any retailer. dr. michael mina, the foremost doctor in the world about self-testing and what we should be doing at home, and it's about time we forgot about that, it's crazy carl, we've got to keep the sick people from the workplace because the numbers are still gigantic every day covid. i want to talk to him right now. >> i can't wait to hear what aeo tells you too, jim, because it's been a week of news from l.b we had news on tapestry today, a

new ceo. i wonder, are you feeling better about the mall or not? >> feeling great about the mall. teenagers love the mall. maybe they don't have anything else to do, but american eagle outfitters had the best number you have seen, and levis was great, denim is back they're cooped up, ready to roll >> certainly retail sales might indicate that is true. jim, we'll see you at six, mad money of course with jim cramer, 6:00 p.m. eastern time, a lot more "squawk on the street" in a moment dow is up 220.

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good thursday morning, welcome to another hour of "squawk on the street," i'm carl quintanilla with david faber and morgan brennan record highs once again on the s&p and the dow has earnings and ecodata give more indications of a solid reopening of the american economy, and that is without the help of the financial or energy sectors at least this morning. >> and that is where we're going to start, 30 minutes into the trading session, here are the three big movers we're watching, starting with coinbase, the cryptocurrency continuing its

climb after its landmark debut, well below the opening trading price. you can see shares are trading around 3.39, up a little bit to start the day. strong citi and bank of america both beating we'll have more on the numbers and highlights from the calls. bank of america is down 3% and pepsi coe reporting results this morning, beating the street as consumers keep snacking shares are fractionally lower. peer time, though, we are getting some more data business inventories are out just moments ago rick santelli has that for us. rick. >> yes, and it's important to pay very close attention to business inventories because we know we need to replenish them so the number for february is up half of 1% up .5. exactly as expected, and it's a slight revision in the rear view mirror to january, originally reported up 3/10 now stands up 4/10

we know today's data has been very strong outside of utilization, and industrial production why? maybe because of some of these supply chain issues which lead into that inventory number now, for the next number, this is a realtime april number, association of home builders index, we go to diana olick. diana. builder sentiment increased one point in april anything above 50 is positive. now, last april, at the start of the pandemic, the index plummeted to 30, but then shot back up over the summer. builders say they are still seeing strong buyer demand, but are concerned about rising material costs lumber futures had an intraday record high yesterday. of the index's components, current sales conditions, up 3.75, but sales expectations in the next six months fell two points to 81 the last one may be falling because affordability is becoming an issue, especially

given the higher mortgage rates, but at a slower pace than last year, regionally, builders sentiment rose in the northeast and south, unchanged in the west, and fell slightly in the midwest. >> our wilfred frost has the numbers for us. >> let me start with citi pulling out of 30 markets, including the likes of china, india, korea, australia and russia they'll now operate out of four wealth management hubs in asia, and europe, london, uae, hong kong and singapore they remain fully committed in all markets in the institutional business and the private bank. this is a major step by ceo jayne frasier as part of her strategy refresh she told me earlier that quote while those 30 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 higher returning opportunities in wealth management and our institutional businesses in asia she framed this as doubling down on wealth in that region, rather than some of those consumer business lines mark mason outlined it would free up 7 billion of capital, and represented 4 billion in revenue, and 3.3 billion in costs and would allow them to increase business in other business lines let's get to the earning numbers, and city and bank of america showed similar themes, strong capital markets, albeit, not as strong as goldman sachs and the driven by the provisions from bad loans switching from a coast to a benefit both also saw costs rise year over year. while that was expected this quarter, seasonal reasons and covid, it was larger than expected for bank of america, was up by

1.5 billion for them, and the reason the stock started to slide, david, was when they gave their guidance for full year costs. i think some had expected it would be a one off quarter they would make it up, keep the same guidance in the other three quarters but they didn't they increased guidance for the full-year cost by 1.5 billion as well the extra cost attacked on to full year guidance that triggered the initial selling for bank of america. they were able, though, to upgrade net interest income outlook for the full year by 1 billion, highlights their sensitivity to the yield curve, but either way, as you said at the top, down 3.4% as it stands. brian moynahan will be on at 3:00 p.m. >> look forward to hearing from him. it's interesting the mixed response to overall what are strong numbers at least for the last quarter, wilf. >> yeah. overall, the theme is all positive for all banks, particularly capital markets, but even with that slight disappointment you saw in j.p. morgan's share price performance yesterday and bank of america's

today, even for the core business lines, loan growth hasn't picked up yet, why, because people have lots of cash, and they're paying down net, has net interest income picked up in this quarter, no not quite but guidance for the rest of the year continues to rise i think you've got a specific aspect here with bank of america on the costs i wouldn't say it was purely that cost aspect that was the trigger and then you've seen a bit of selling since. we'll get more guidance from brian moynahan no doubt later on the call the big take away, i just say, though, eps beats comfortable for every bank, whether you're capital markets or retail banking, and even if some people see it as being flattered by seeing reserve releases and that's not repeatable forever, it's probably repeatable for a couple of quarters, given how much provisions they have built up last year, and it's only for good reason that you are releasing from the reserves and that's because the outlook for the economy is much better again, lots of good factors at play here. they have performed well the

last few months. >> i wanted to get you to clarify for viewers to what degree those releases are a vote of confidence in the turn around, especially given the size of b of a's relative to what we thought or was going to be >> that release, as you said, relative to what was expected, let me give that number for you was a 1.7 billion benefit. it was expected to be a $350 million cost, so j.p. morgan had slightly bigger scale to the surprise benefit but all having a surprise benefit, having a vote of confidence, it's big because clearly things are moving in the right direction. last year it was moving in the wrong direction. it's guided by rules and accounting principles. they have to follow what the base expectations are, but all of the sentiment on these calls has been very positive the wells fargo, perhaps, the most strikingly positive relative to recently calls

first six quarters were down beat on the call this one more positive i would say all of them, though, relatively constructive in their outlook for the economy and of course capital markets has been totally blown out. >> look forward to this afternoon. that's going to be big we'll see you at 3:00 on closing bell that's our wilfred frost dow, s&p record highs on the strong retail sales numbers, and some of the earnings as well chris ailman joins us, chief investment officer, chris, great to have you back good morning. >> good morning, carl. good to see you. >> i want to get you first on the eco data and the degree to which the bond market is not reacting violently to it, and i wonder if you think that means we could be in a bit of a range here for a while, and the implications for equities as a result >> well, right now we're in nirvana, bonds are actually happening, which is surprising and through the roof

said it right before the top of the hour, there are four things that drive stocks. the first two i would like to say are real earnings, but then you get down into liquidity, and that's the story, liquidity, we're a wash with liquidity, we're a wash with optimism i think you're going to take your clue from the bond market, and i'm worried about that it's going to back up again, and rates will probably leak a little bit higher. we're borrowing too heavily in the market >> so do you see that being a liability say in the second half, in q2, when does that happen >> well, i think you're going to be talking to rick a lot in the coming months. it's hard to say q2, beyond that we're a wash with liquidity, there's plenty of money, but somebody that has to pay for all of this party, all this liquidity. the deficits we're running are just ridiculous, and i don't

want to be a down sayer on such an up day, but come on, you can't just flood and give people free money, and then just flood the economy with 0 interest rates forever. at some point they've got to start backing up calling that is going to be tough. but i really think that a serious investor needs to take a clue from the bond market, and just keep a real close eye on that earnings are important right now in the sweep, but watch the bond market. >> chris, i want to talk some crypto with you because i don't think you have any you are a client of blackrock and we had larry fink on the show earlier this morning talking about what his clients are saying about crypto. here's what he said. >> i don't believe we should think about crypto as a substitute of currency, but i am fascinated by it as an asset class. >> chris, he said he's having

minor conversations with clients about it, does that describe your back and forth. >> yeah, it actually does. i had a chance to talk to larry directly just a week ago we didn't talk a lot about crypto, but it is on the research block for most institutions a few of the endowments in the usa have dabbled in it right now, it's all speculation. i think larry is hitting it on the point. is it an asset class or maybe a neutral currency, an alternative currency people haven't decided because they don't have long of a trading history. all they have is the speculative ramp up and down and back up again. it will be interesting it's here to stay. and right now it's been traded like tulips. people will understand that reference. so long-term, it probably has an interesting place in the currency markets, and maybe an asset class. i think it's more likely to be an alternative currency. >> chris, it's morgan. in that interview, fink also said that climate change and

inflation risks, and i know we talked a little bit about rates, but inflation risks are a bigger concern for black rock's instituti institutional clients versus cryptocurrencies two topics we have talked to you about multiple times, how are you thinking about that, and how are you making investments based on particularly climate change and esg more broadly on those areas? >> great question, morgan, and that actually was what dominated by question to larry was climate change we frankly made a $1 billion investment last week into a launch of an etf that black rock had created that's going to focus. it's an actively traded equity portfolio, and i'm normally a big passive investor i think in climate change, we're going to see companies that adapt and adjust, and we're going to see other companies that stick their head in the ground so listening to the words of cfos and ceos about who's actually changing and being aware, i think those companies are going to outperform going

forward, and companies where they stick the head in the sand, we're going to engage and prod, in this case, we're going to not own the stocks and sell toward the more aggressive stocks the world is going to have a dramatic change if we haven't already this year. but in the next five years, you're going to see dramatic changes need to happen on the climate change front, and you're going to continue to see weather around the world and here in the usa. hopefully we'll wake people up that things have to change we have to lower the amount of carbon we use, and increase alternatives >> on that note, i think you're still supportive of a change at the board of directors at exxon mobil, even though they have changed that a lot, added new directors. we had darren woods on as a guest a couple of weeks ago. they're talking a lot about carbon capture sequestration technology they're not doing enough for you over there >> i have to say, isn't that amazing, you had darren woods on and he's talking about carbon

capture, climate change. we have made a dent in exxon to absolutely not talk to shareholders and not talk about climate change, he's suddenly paying attention, adding to his board, some of those were good additions, but we really think there needs to be a change at the top. >> a change at the top, what do you mean a change at the top gl by the way, it's unlikely you're going to win your proxy fight, you or engine one what do you mean a change at the top, you want woods out? >> it's not over until it's over, david. we got to hear from blackrock. we've got to hear from state street we have to hear from glass lewis, vanguard, i know the adds are against us we want to change at the board, it may be that darren is fine because he's obviously changing his perspective. he's endorsing the paris accord, realizing that exxon can't fight climate change, they have to join in and adjust

it's going to be a huge change for the company but it has to start at the top with the board asking those tough questions what he's doing at carbon capture, he has scientists and a good team at it, it's minuscule to what he's doing they have the highest cost of barrel per oil for production. they have to change their behavior and stop being recalcitrant and start being progressive. >> if you put a price on carbon, it might become a very profitable business to start to take it out of the atmosphere. meanwhile, you have owned the stock, it's done extremely well. i wonder, do you take your profits and move on at some point? >> you know, i'm a passive investor i own because it's in the broad index. if you put a pin on the calendar on the day we started to engage, it's not exactly the day the stock started to turn around if you talk to analysts they

were frustrated with the company and its attitude and we have heard it sing a different song since we started talking to them, so i think it's an example where engagement can have an impact it's not over. this is a long-term discussion, and i think seeing that company pay attention, putting a price on carbon is something i agree with i'm not going to get it automatically. it's a big change and needs to be around the globe. it's a global problem, not just a usa problem. >> chris, always great to see you. really great stuff look forward to next time. thanks. >> thank you. as we head to a quick break, here's a look at our road map for the rest of the hour a bezos good-bye to shareholders, a look at his last letter beforehanding over the keys. the return to work, we're going to discuss the challenges ahead with the ceo of commercial giant silverstein properties. and the case for coinbase, more on the crypto craze on the

sendayco d of trading. there's more "squawk on the street" still ahead.

welcome back, jeff bezos issuing his final letter to shareholders before turning over to andy jassy. from a chief executive standpoint, deerirdre bosa has gone through the leatter. >> the most relevant part of his

letter was the comments on labor in the wake of the union vote in alabama that we covered so closely. he asks does your chair take comfort in the outcome of the recent union vote in bessemer, no, he doesn't i think we need to do a better job for our employees, closed quote. at the same time, though, he blamed the media for misrepresenting their employees as desperate souls that are being treated like robots. he says, i'm quoting again here, that's just not accurate it's notable that bezos addressed labor issues because they are unlikely to go away because the union vote went in am amazon's favor his successor is going to have to deal with that. he's laying the ground work, admitting they have to do better, and updated prime membership numbers which stands at 200 million that's an increase of 50 million just last year remember that prime members spend more, they buy more often. it is central to the amazon fly wheel, and that is the

significant increase in line with amazon's booming business during the pandemic. lastly, bezos left on a very bezos like note. he quotes a passage from a richard dawkins book that reads in part, staving off death is a thing that you have to work at he uses it to remind amazon that it needs to continue to work hard to stay distinctive, stay alive, keep working and innovativing, and that's a nod to the message in his first annual letter in 1997 where he laid out his philosophy that has guided him over the past 20 plus years. it must always be day one. back to you. >> that 1997 first letter was featured prom ninently in this letter to go back to the employment discussion, they hired 500,000 employees last year. half a million employees as other companies were shedding millions of employees in total,

they hired 1.3 million people, now one of the largest employer at least here in the u.s it speaks to why the company is under such great scrutiny. >> and that's a great point. i'm glad you bring it up 1.3 million employees that amazon has that makes it the number two private employer in the country, and that is why we are talking about these labor issues so often. on one hand, amazon pays all employees at least $15 an hour it has its own minimum wage. lots of benefits, some of the issues over the pandemic when it added so many was its treatment, and that's what this whole labor debate and unionization debate is about not that wage, but the treatment of workers and how hard their work to get that amazon efficiency that has made it, you know, this 1.5 trillion plus market cap company >> you know, our last guest spent time talking about climate in his appearance just now

bezos spends a good amount of time in the letter discussing climate change and what their approach is going to be. >> >> yeah, the climate pledge, that has been a project of amends for some time they talk about that often at their annual meeting, so bezos reiterating that goal and, you know, it's interesting because one of the things he also said in the letter is kind of like trust us, we can do all of this. we can treat our employees better we can achieve our climate goals. we can create a cloud company in aws, and at some point, you know, investors, they've wondered this for a long time, can amazon do everything, the track record is pretty good on that front you don't want to bet against bezos, but they're taking on more and more, as morgan alluded to, this climate pledge they're getting other companies to sign on it. it's just a number of challenges you've got regulatory scrutiny on the company that's only increasing so while amazon has

historically achieved many many different goals, it's getting harder to do for the next phase when andy jassy takes over. >> shares of amazon are up 1%. thank you. we've got a lot more on bezos from you in the next hour on "tech check," carl. watching american eagle, trading at the highest level since january 07 up 70% this year after the retailer said q1 sales are on track to top ailonolrs bli dla there's a lot more still ahead the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.

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welcome back to "squawk on the street," delta with a $1.2 billion quarterly loss. if these booking trends improve or hold, we talk to ed bastian in the last hour, here's what he said. >> we've seen a huge surge in bookings just over the last couple of months in march, we had twice the amount of bookings that we had just in january, just twomonth earlier, and that's what led to the illumination of cash burn, cash flow positive, $4 million a

day, in confidence, as we look forward to, to think of all of that that i'm most amazed by is that we're doing this while we're still missing 50% of our revenue base. >> morgan, leisure bookings 85 now, recovered to 2019 levels. >> yeah, and leisure, you know, leading the recovery there, and that of course comes on the heels of american airlines saying it's ramping domestic summer schedule to nearly pre-pandemic level that company plans to fly 90% of the international schedule, 80% during the peak season of 2019 we're seeing, as the vaccinations ramps, people start to get a little more comfortable, have a little more money in their pockets from stimulus checks and the like, starting to venture out and do more stuff you can make the same argument around retail, lvmh or american eagle. something i know you talked about last hour as well. >> interesting question will continue to be the return of the business traveler, which i think they said is around 20% right no

of what it had been. that is of course going to be key to the long-term sort of profitability of these airlines, and it's still a key question. as we go to break, we want to have you check out shares of dell and vm ware dell is up nicely, they gave us the details on the planned spend of 81% stake that dell owns of vm ware. shareholders are going to get.44, a significant dividend, most of the 88% going to dell, and shareholders are applauding the details themselves and the plan there michael dell will remain chair tt he will have a stake as well inhacompany. we'll be right back. stay with us l around you where you learn, work, and fly we help make them healthier. we are the people of abm. for more than 100 years, we've been a leader in making

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welcome back, i'm rahel solomon, and here is your cnbc covid update at this hour. the cdc has new numbers on what it calls breakthrough infections or people who get covid-19 even after getting inoculated out of 76 million people who were fully vaccinated, around 5,800 cases have been reported nearly 400 of them, around 7% needed hospitalization, and 74 died the cdc says it's important to remember that while the vaccines are extremely effective, they don't provide absolute protection and the covid search has brought its daily case count to a record 200,000, overwhelming hospitals there, and in some cases, two patients are being put into one bed, and supplies of oxygen are running short. the head of the world health organization is calling for an you are urgent increase in funding and with the olympics less than

100 days away, two top officials say it's still possible they could be cancelled or held without spectators if the covid situation is bad enough. so much like everything else these days, david, we'll just wait and see we'll send it back to you. >> i really really hope not. thank you, rahel vaccinations continuing to ramp up, and some companies preparing for their employees to return to the office but what does it all mean for the future of commercial real estate joining us is ceo of silverstein properties, oversees 16 million square feet of commercial, residential, and retail space. it's good to have you this morning. let's start off on the numbers you're seeing. what percentage of people are actually coming back to the offices right now where you can kind of keep track in terms of the population as a percent of what it otherwise would be >> thanks, daifvid. it's different in every city in new york city, we're probably in the 15 to 20% range and it differs from sub market to sub market, so our buildings are in the probably 10 to 15% range

downtown and probably higher in midtown right now. >> i have been continuing to hear that number from a number of people who run these organizations that obviously they're taking space in buildings like yours are you surprised it's so low. when are we going to see an appreciable increase of people coming back to the office. >> i think we're turning the corner new york state is 39% with one vaccine, and 26% with double vaccinated, so we should be turning that corner and are feeling good about bringing employees back, and feeling safer about coming back now, and we're really seeing the employers talking to us about bringing employees back, and so we're spending a lot of time doing town halls with the employers and our tenants to figure out how to get them back to building in a safe way. >> just to dig into that a little bit more, what does that look like for the folks that are going back into your office buildings? what kind of protocols are in place, and how long would you expect these to actually stick

around >> so everyone's going to do it differently, and it'sgoing to take time for them to come back. we see people starting to come back now we're hoping everyone starts to come back between now and july 4th, and then by labor day, everyone hopefully will be back in the office. that may be a little bit optimistic but we're seeing a lot of trends toward that line we use a program called dojo which helps our tenants bring their employees back in a very safe manner. it spaces people out in a safe way. all of our buildings have hospital grade ventilation, so it's very safe we have been back since september of last year, so we have been back for more than seven months now we have had not one single employee issue with covid spreading. so we were the perfect guinea pig for our tenants to see how that works, and we continue to show our tenants how they can

come back in a safe way. >> the vast majority of your portfolio is in new york city. as we have had the conversation on the show for quite a number of weeks and months now, given what's a choppy recovery, and really even just a migration, a work migration to a certain extent across different parts of the country right now, are you looking at other markets be it florida or elsewhere for possible expansion >> our very large office building in philadelphia, very large office building we bought during covid in september last year, and los angeles, it was the tallest building in los angeles, and we're optimistic about bringing people back into those buildings. from our experience, once you get back into the building, it's a great experience all of our employees will tell you it was so refreshing, you know, when you first go to the first meeting, and you see people, you get so much more accomplished because the zoom meeting is a singular in purpose meeting, but then you get so much other things accomplished when you get to see someone and

talk about other things, so that word refreshing kept popping up, and so that's why we think when people get back into the office, they'll feel comfortable about being there, and they'll want to be there >> some of these organizations that rent from you, for example, they're frustrated at the pace of return, frankly they would like it to be quicker. at the same time, though, they say when everybody comes back so to speak, it's still only going to be 70, 80% of what it was, that we're going to have a hybrid approach or certain people remote. what does that mean for how you think about the future of the business and the ability to maintain some level of rents you have seen in the past? >> i think it's going to mean different things to different companies and industries how we use our space is going to change we have very high end tenants in the tent business, real estate business, in the advertising business how they use their space is definitely going to change they need space, they need to be in their office to work

collaboratively, to mentor their young executives, and they can't work remotely, 100%. that's never going to be the case can serve divisions work remotely sure can some of their divisions work one day a week remotely. we're thinking about doing that on fridays, having certain parts of our company work one day a week remotely, but some of our divisions obviously are building services divisions can't do that. they have to be in our buildings. can our accountants work remotely one day a week? some can some can't others can't we're testing that out, and so when people come back, they're going to come back differently. >> are you renting space at lesser amounts, i would assume the numbers have to be done, and down fairly significantly, don't they, in terms of somebody coming and saying i want to rent some new space. >> again, people are going to think about how they use their space. they may take a little bit more

space because they want to space out how their desks are. we haven't seen that yet. >> finally, concerned at all about the future of new york city, how important is this upcoming mayoral race, given your presence in the city, its office space dwarves that of any other city in the country, tell me. >> i promise you two things, the mayoral race is going to be very interesting and it's very important. and number two, never bet against new york. >> good place to leave it. marty, thank you >> thank you dow down 34 k, we're going to watch that and the sanctions on the white house eamon javers has the details >>that's right, senior administration officials walking us through some of the details here take a look at what we know right now in terms of what's in these sanctions, starting with russian debt this is an important one, what the u.s. is saying is they're going to block u.s. financial institutions from russian issued debt after june 14th

only in the primary market, though the secondary market will be allowed to continue to trade debt that was issued earlier they want to have a smooth transition here in terms of the way this impacts the united states they're worried about blow back to u.s. financial markets. they're going to block lending funds to the russian government, and they're going to designate specific russian companies for their involvement in malicious activities some of these companies in russia involved, allegedly in some of these cyber attacks that we have seen in the united states the u.s. government saying this is a response to the solar winds hack we saw at the end of last year and also russia's involvement in the election inside the united states the senior administration officials seem to be very concerned about this idea of a se cycle of escalation. they want the sanctions to be proportionate and responsive specifically to what the russians and done, and they say the president spoke to vladimir putin earlier this week to tell him this was coming. they seemed very concerned about the idea of an escalating cycle

of recriminations and responses so clearly they're trying to be measured here in their response. i also asked the senior administration officials what they think this does to russia's ability to fund its own government given that they're going to have some lack, now, of access to debt markets internationally. they said last time this happened, they did see the russian government have to sell some of its foreign reserves in order to fund its government and defend the ruble so clearly they expect something similar to that. they say russia is going to have to make some tough financial choices, guys. back over to you >> eamon, huge story with implications we're beginning to think about. eamon javers, thank you for that we mentioned dow 34 k for the first time, just a few moments ago, about a month after we hit 33 k for the first time. also keeping our eye on coin base, second day of trading, after opening around 380 yesterday, currently 333

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. welcome back, let's get to our steve liesman with results from the american survey, looking for the outlook on inflation and the economy. >> morgan, thank you economic outlook took a turn upward, not so much wages or the stock market, and there are growing inflationary concerns that we picked up in our survey of 800 americans 44% of those surveyed in the cnbc all america economic survey say they expect the economy to improve in the next year that's up from 34% in december a big factor, 48% see the value of their homes increasing as the hot housing market lifts expectations that's one of the highest numbers we have seen, but just 27% think their wages will rise, a sign the job market remains troubled, america's view on the current economic situation are unchanged from december. 34% say the economy is excellent

or good, but that is well above the levels from the first term of president obama the measure was in the single digits for the first two years, but it's well below the prepandemic levels of the trump administration and the stock market, the public outlook on stocks has cooled a bit, 37% saying it's a good time to invest, down three points from the last survey 36% say it's a bad time to invest, and 28%, they're smart enough to say they don't know. several times, though, in the past when the gap has narrowed like this, markets have done well in the ensuing several months something to watch there and large segments of the public reporting seeing higher prices on food and gas, housing and rent, as we have seen. overall, 78% see the cost of living increasing instinct next year much higher than we measured in 2019 so we have this problem. if expected price inflation outstrips the outlook for wages,

that could weigh on economic sentiment in the months ahead, morgan. >> yeah, and that's a key question, isn't it, at this point, steve, and one we're going to be talking about day in and day out as we continue to review the latest inflation numbers across the board and wonder about whether wages are going to keep pace what's your thought right now? >> can i give you a little history, daifvid, if you don't mind >> i always like that. >> this question on the wage outlook was added to our survey ten years ago with a conversation with a certain fed official it was -- the idea was suggested to us to measure this as a way of thinking figuring out people's inflation expectations. david, as long as wage expectations are down, it's hard to have the inflationary spiral that you may worry about with actual inflation so it's definitely an issue that weighs on sentiment, but in terms of actual inflation, if the wages don't follow the

prices, then it would be difficult to get the inflation that you're so worried about >> that's certainly what nfib is telling us right now, at least from the standpoint of small business owner, steve, pretty interesting, thanks, our steve liesman. we have an ipo, don't miss the ceo of autonomous trucking company too mpsile it's coming up next. we're back in a couple of minutes. rth is giving the peoplo build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. wealth is watching your business grow. worth is watching your employees grow with it. principal. for all it's worth. did you know that petco, is now a health and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues.

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it's time now for our etf spotlight. we're taking a look at for o under pressure down half percent. one component to watch specifically virgin galactic new security founding sir richard branson and four tints he controls sold more than 5.5 million shares worth $550 million of the company's stock over the past days this a more after remaining personal stake and doing so for similar reasons. invest elsewhere virgin group remains largest shareholder for the 24% spac, virgin intends to you'd net proceeds to support global believer, holiday and travel services continued affected by

the unprecedented impact of covid-19 and supporting growth of new and existing businesses none the letts, virgin galactic shares down about 11.5% right now. we'll be right back. stay with us. (vo) nobody dreams in conventional thinking. it didn't get us to the moon. it doesn't ring the bell on wall street. or disrupt the status quo. t-mobile for business uses unconventional thinking to help you realize new possibilities.

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walmart making a big investment in gm self-driving subsidiary cruz. with more with bring in phil lebeau. >> reporter: anytime a company size of walmart with as many stores as it has around the country, deciding it's going to be investing in autonomous vehicles is a significant mark for a company like cruz. the news, walmart announcing it will take a stake in gm cruz part of the latest round of are funding that they've completed the road map looking at them now, a number over the last years. the company's latest, $2.7 billion. not just walmart other investors as well. valuation of cruze stands just

over $30 billion public launch of robo tech by cruze, originally starting 2019. still remains unclear. would we see something potentially later this jeer eayear or next year company not saying this vehicle we show you now looks like a shuttle autonomous vehicle there is no steering wheel in it this built by general motors at its factory zero in detroit. production expected later this year or early next year. once that comes out see how it's deployed by cruze. shares of general motor, morgan, um fractionally on the day again, a significant, significant endorsement of the possibilities behind cruze with walmart taking a stake as it tests autonomous vehicles in this area. >> speaks to the fact commercial applications where we might see adoption happen most likely.

phil lebeau, thank you. autonomous truck companies making a dayebut this morning. ahead of that trade, congratulations and thanks for joining us today. >> thank you good morning to you all. morgan good to see you again. >> so coming off the heels of the biggest direct listing in history, coinbase yesterday and a tsunami of spacs, why go public through an ipo? >> a tried and true process. and simply we believe in transparency as part ipo process invested in major investors, research analysts, lawyers, strategic partners and believe it adds to the credibility we want to present to the market. >> $40 a share for the ipo price raising more than $1.3 billion market value of about $8.5 billion. what do you put that capital towards? >> a huge milestone for the

company. first and only autonomous company publicly traded. a validation of shareholders confidence in us and our technology part of the ipo, able to invest more in our people and operations. >> yeah. and just talking about that technology the last time we spoke was 2019. >> right. >> announcing a partnership for self-driving trucks, a pilot, i should say, with the postal service. since then how have you expanded partnerships and how trucks are on it's roads not only here in the u.s. but in places like china? >> sure. trucking agenwe know is the bacn of america everything we use, touch at home, at work, schools, moved on a truck at one point trucks faced with challenges including driver shortage, driver turnover and increasing costs of safety and environmental issues we're an artificial software

company, building solutions to solve the pressing challenges and will bring the most reliable autonomous freight capacity to the market since we last spoke in 2019 we've made tremendous progress in terms of technology, commercial operations and go to market strategy. we have invested and gone production programs with two of the largest global truck oems, in europe. >> how important is the subscription part of your service? i imagine investors love to give a n malt multiple to revenues >> we have to understand with level four autonomy, nothing something that's plug and play tusimple will provide a turnkey solution help to provide the dechfinition

maps, pre-trip planning, emergency rescue teleoperations the whole turnkey solution enabling these trucks to do appropriate more safely and efficiently. >> and largest shareholder, 20% stake, affiliate of cena corporation. march 1st requested written notice on that investment. do you have an update on that for us >> at this you point, this is a committee of foreign investments into the u.s they are reviewing a 2017 transaction where an investment made to tusimple as a u.s. company. we are collaborating and cooperating with them and having review and presenting voluntary filing at this point, we do not have an update over the coming months this issue will come to resolution and we believe it's a review of

a particular transaction that happened a long time ago, and we do not see this having an impact to the overall business. >> end of the show leave it there congratulations on the ipo hope you'll come back and talk in the future. that does it for "squawk on the street." "techcheck" sharts now. starts now. good thursday morning. welcome to "techcheck. i'm carl quintanilla day two public company, cathie wood buys in stocks higher. not just coin, though. another massive ipo at the nasdaq a $30 billion video game company backed by kkr making its