first time we'll show you what's moving this morning right now. some of the biggest movers are cryptocurrency bitcoin is plunging, but dogecoin is soaring. don't ask me why it is not called doggie coin tweets from elon musk and bizarre mention of a ceo on a conference call to spur trading. $35 million market tab. start thinking of your third vaccine shot the ceo of pfizer said a couple of weeks ago an annual booster will probably be needed. it is friday, april 16th, 2021 "squawk box" begins right now.

good morning welcome to "squawk box" here on cnbc i'm andrew ross sorkin along with wjoe kernen becky has the day off. >> do you want to know >> i want to know. we've been together for a decade you know -- >> you can tell. >> some mornings, you are feeling great and some mornings you are not feeling great. some mornings i'm feeling great. >> i'm always feeling great. you had some moments lately. i'm not sure about your lighting or something set you off i can watch you in there i see you are in a bad mood. you are. >> sometimes i'm in a bad mood i can be in a good mood. depends on what side of the bed i wake up. >> we pack up at 3:45 a.m. i'm in a bad mood. i'm in a good mood this morning. in the most bizarre -- we have

to talk about it did you see that new jersey deli that is worth $100 million >> yeah. >> and doggie coin why isn't it dogecoin? we have to launch the "squawk cur currency." can we use your face for the logo >> i'm worried it won't do as well >> all right >> we have to use your face or becky's face. >> in that might be a better id. i'm sorry. we'll talk about this. >> we'll start with the markets. after the dow rose 300 points closing above 34,000 for the first time ever after retail sales jumped 10% in march and the jobs claims. hit the lowest level since march of 2020. take a look at u.s. equity

futures right now. ahead of the market open looking at the dow to open 54 points higher. s&p up 3 points. nasdaq opening up off 24 points. treasury yields and then the "squawk stack. 10-year is 1.576%. we have coinbase >> it is under 1.6 again after all those strong numbers what is happening? >> i know. here we go coinbase on the list you are looking at that stock. dropped a little bit cryptocurrencies on the move this morning as well bitcoin dropped to $60,781 dogecoin, we will call it doggie

coin >> up over 60% explain it >> it a terrible responsibility. we are supposed toexplain why something has happened >> we should have a discussion number one, you see portnoy saying i am not jealous of dogecoin tweeting i'm not jealous. obviously. so conagra. >> tweeting all of this. >> elon musk what about the conagra ceo slim jim's memes to sell the mystery meat sticks whatever they're made of and preservatives. i have not had one in 50 years probably i don't want to disparage them great things why does dogecoin? why mention that on a conference

call about slim jim's and robinhood almost crashed their site it was like a penny. >> it is a conspiracy. >> a penny a month ago it's 27 cents. it was a penny is it going to a dollar and why is this an example bitcoin is a measure of an hour of work. people say this is what work is worth. is dogecoin worth something or someone willing to pay more for it as it goes up and you can unload it to do you know? do you know? >> i have to think it is there is no utility. we're trying to rationalize it >> i know you are not a boomer >> for some, i'm a boomer. i've become a boomer talking

this way >> you're at least a csuit. >> a boomer in a suit. >> i tried to get a grasp of how it was invented by those guys in 2013 there is something to it can this -- it is $35 billion market cap now >> i know. >> is there some utility there must be. there must be. we'll move on. it is not all about crypto crazy. on april 1st, he may have intimated. this pfizer's ceo said people will likely need a booster dose of the covid vaccine after a year 12 months after getting the first two. he made the comments to bertha coombs recently at the event with cvs health on april 1st,

but just made public he said people will need to get vaccinated annually. gorsky said people should expect to get regular covid vaccine shots just like flu shots. moderna's ceo says the company hopes to have the booster shot for the two-dose vaccine available in the fall. once again, read the literature. there is disturbing news of variants proliferating around the world. even in places where they hadn't been seen. some are eight times as contagious we'll have dr. scott gottlieb on to talk about that later that's not -- do you have a better reason why we're at 1.57 on the 10-year >> that sounds like the best explanation for right now. >> yeah. i was going to do math on the

tougher stuff. 1.6. the market hit another new high. dow and s&p and nasdaq all up substantially since he said that so far, so good. he said several months i hope i get a call. we're a month and a half now if the several is up in two weeks, we need to know >> we need to know we have blockbuster numbers from china to tell the audience about. the gdp jumping 18.3% in the first quarter. it is up against a weak comp with the slowdown of the pandemic china wasn't locked down for long, the rebound was led by exports as factories raced to fill orders for europe and america. and on the "stack" shares of

coinbase stocks lower as the day ended yesterday. the company at an 10:00 upgraded the cryptocurrency network bitcoin and ether under a lot of pressure it is now up 100 i don't know how you want to think about that ether off 3% and cathie wood's ark fund with $352 million if n coinbase joe, you got the robinhood news which is in the crypto land. >> no upside to calling it doggie coin. people don't understand when you are joking d

d dogecoin i got that robinhood restored crypto trading after the platform suffered an outage last night. the issue among huge demand for dogecoin which traded near 30 cents. it was a fraction of a penny not long ago it started breaking higher after elon musk tweeted about it and jumped again after the ceo of conagra mentioned the cryptocurrency on the earnings call the company is incorporated dogecoin imagery in the memes for slim jim's which you give the guy a raise for thinking that up, whoever did, at conagra, or a psychological test how did you come up with the idea of using dogecoin to sell

the meaty sticks a lot of different ones, andrew. some may have cheese in the middle and different flavors you know, there are all kinds of new age slim jim type stuff. jerky products and all those things. >> yes >> some are not made of meat kale all kinds of stuff do you have any of your favorites? they sent them here. the jerky stuff. that stuff's pretty good some of that jerky stuff it doesn't smell great >> made by who >> some of those -- they come in i think some of them are like disrupters >> yes there's a whole plethora of them i have not been sent them. you know, on my -- i go to whole foods and i stroll i'm saying that sarcastically. of course i do to whole foods.

>> even in the old days, you were not sure what you were eating in terms of meat now you have no idea now, they don't say it's meat. up next, what to buy how cool the two of us have to get wrapped after 11 minutes what to buy at all-time highs? we will talk about strategy with the dow at the all-time high as we head to break. the shares of alcoa. the first quarter earnings of cents. stock has been on a tear we'll be right back. ♪ i'll be the man ♪ ♪ who comes back home ♪ elity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity.

♪ ♪ (upbeat music) you can act quickly. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business.

the dow closed at the all-time high. it is happening as the ticked below 1.6%. rotate in. rotate out joining us now is gabrielle santos at jpmorgan chase and jake wahthaler ceo of blueprint capital advisers gabrielle, rates go down that's good for stocks unless it is reopening fears because of variants or third

vaccine. whatever it is then you would think it is not great. i guess if you have growth without inflation, it's fine are we seeing inflation though >> yeah. we have seen this recent dip in the 10-year about 16 basis points year to date. we can come up with a macro story for it, but it is more technically driven some demand coming back from overseas investors japanese investors for example which make up 17% of foreign demand and are seeing juicy hedge adjusted yields. for us, the question is is this pause in the 10-year sustainable? no, we think this is a pit stop toward a longer 18-month process of the further steep eening of e curve. that is one issue. the yield curve steepening for stocks, that is more

favorable for cyclical stocks. we advocate for rebalancing from growth to more sicyclical to industrials. it is with fixed income with a much more challenging back drop. it is really a bear market with fixed income we have continued to shorten duration and focus on extended credit high yield, secure debt, to be protected with fixed income. >> jake, if we were able to reopen and grow with the crazy gdp numbers as you watch what china reported let's say we get near double digit growth if that is not inflationary and inflation is transitory, that could be good for stocks because it wasn't inflationary, but we did grow more quickly?

>> i think the message from chairman powell is he doesn't plan to take the punch bowl from the party. i look at the deficit here in the u.s. getting up at 15% certainly i start to think that could be inflationary long term i don't think it threatens equity market valuation or contributes to volatility here over the next six to nine months i feel we're at a disco and they are playing the song by kool & the gang "celebration. some with fixed income and some with cash and almost indiscriminately going risk on and buying equity across the board. while that strategy may work while we're in the beginning of the reopening phase of the economy, i think as we move into the second and third quarter

earnings season, as well as the fourth quarter, you will have to focus on stock picking you have to leavebehind some o the names that rallied because capital is flowing in and focus on names that quite frankly will do better post-reopening post pandemic right now, we think the sector that continues to do well is technology obviously creative destruction is here to stay on a secular basis. we like retail we think there is a tremendous amount of pent-up demand for retail particularly the consumer focusing on getting out of the house and starting to travel again. that means they will buy clothes and airplane tickets renting airbnbs. they will be letting loose some of the capital they had pent-up for the last year and a half >> gabrielle, get back to why

you think that the dynamics you described with the foreign buying and within a year and a half, that's going to dry up the momentum is higher for rates? there is no two ways about it? because of inflation it doesn't just have to happen if inflation isn't present. >> we're still at the 10-year at 1.55 that is still not a normal level even if we consider growth rate of the economy of 2% normal inflation of 2% the 10-year should still be higher it should in our mind be closer to 3% as it is eventual resting place. in terms of inflation, our base case is inflation ends up coming back toward 2% at the end of year there are more two side risk inflation. the debate about higher

inflation will continue. the change in the risk matters it means investors will demand a higher inflation premium that is another reason to continue inspecting a steepening of the curve foreign buying will slow down that pace. it doesn't stop it all together. it is still a message of a steepening curve over the next 18 months or so. >> jake, philosophically and last question. a big difference between the speculative areas we are seeing and some of the action there and fundamentals with tech stocks and companies with great futures and pretty good balance sheets and income statements. is there any froth that is starting to worry you that would cause you to worry about the entire market and where it is valued or will the froth continue >> at the end of the day, we see the market struggling to hit the higher highs i do think that we'll be range bound here for quite some time

i think the earnings season will be very positive for stocks. then we'll move on to a period where we will think about what's next and what will take the market to the next level i have been of the mind that the next big leg in the market will be a leg down. i think that could be as much as 15% or 20% that benign correction will set the stage for us hitting higher highs in the third and fourth quarter when the gdp numbers come in stronger and the earnings numbers are stronger than expectations. >> that would be painful even though it would get us back to where people were calling for with a 10% or 15% correction earlier. thank you, both. >> thank you >> happy friday. >> that's why you're in a good

mood friday you have plans >> me? >> yeah. >> i should be in a bad mood my aura ring not good 69 is today. my lowest for the whole week out of 100 think about that if i got in at 69 on a test. >> what is that ring measure how does that? >> my sleep. sleep. >> what happened last night? were you restless? do you know you didn't sleep well >> yeah. but my wife says that i need to look at the app to find out how i felt she laughs at me. >> for someone like me, that's bad. it can talk us into anything it said you were at 100% every day? that is what i wish it would say. >> i feel for you. >> i want you to be in a good mood

coming up when we come back, the push for financial education in school. sharon epperson will join us. and check out ppg industries the first quarter beating guidance and impressing the street teth stock up more than 20% afr e pandemic low we're back after this. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

this is the gap, that opened up when everything shut down. ♪ but entrepreneurs never stopped. ♪ and found solutions that kept them going. ♪ at u.s. bank, we can help you adapt and evolve your business, no matter what you're facing. because when you close the gap, a world of possibility opens. ♪ u.s. bank. we'll get there together. ♪ we may be in a touchless world,

but we can still touch people's lives... we'll get there together. by staying in touch... and showing you care... because now, each time you order online or tap in-store with your mastercard at restaurants and grocery stores, mastercard will donate to stand up to cancer, one precious cent at a time, up to 5 million dollars. together, we can start something priceless.

welcome back to "squawk box. financial literacy can help out

money problems only a handful of schools require a financial class to graduate we have senior personal correspondent sharon epperson with the latest of those who may benefit from the financial literacy class the most. >> reporter: we first met olivia in 2020 in the personal finance class in middle school now a year later, 14-year-old olivia, still using the important money lessons. >> those are skills that can be applied when i do for a job or apply to college >> reporter: a ninth grader attending high school in new jersey remotely. she is looking forward to gaining valuable education and financial literacy new jersey is one of a handful of states that require the financial literacy classes to

graduate from high school. >> this is the opportunity for folks to reach out to the state legislators to say this is important. >> the economy has been fluctuating. we need to know these things >> reporter: zoe mccall testified in front of the school board in maryland last year a advocating for the personal finance class in the high schools. >> i can make a difference with the proper knowledge to make good financial decisions >> reporter: the board passed financial literacy as a graduation requirement. >> it will be implemented for my class. >> reporter: zoe, now 15, says it is an important victory for future generations, too. >> no matter what age you are, it is good to have those conversations. >> reporter: even at 8 and 9 years old. this ohio elementary school is using videos to make money lessons fun for third graders.

>> no matter how you pay, it is still money you are spending sdplc >> you have to pay back on a credit card. >> reporter: financial literacy is a movement. >> this impacts us directly. >> reporter: that zoe and others continue to grow zoe and the students we met with truly inspirational. studies show that taking personal finance in school makes a difference in making sound financial decisions as adults. students required to take a finance class in high school have higher credit scores and lower credit card balances they are likely to save and budget and invest, andrew. >> sharon, it is fascinating and you are 100% right i was going to mention access to financial education is not equal in our schools of course, the question is what is the impact of that disparity?

>> reporter: that is absolutely right. the latest data from the personal finance shows less than 12% of students are required tie a stand alone to graduate from a high school with the financial literacy class among low income students, less than 8% are required to take a personal finance class >> sharon epperson, always educating us >> more on cnbc.com/investinyou. >> sharon? did you see the investor stuff you were out on vacation it came back that you were not getting emails i thought you would see it did you look at that will you look at that for me >> reporter: i did not i will look at that for you. i will absolutely. >> i thought about sending it again when you got back. it is cool i'm involved

>> i'll look at it sdp >> check it out. in 15 colleges they go out and give money to kids in high school and have a stock account to bllearn about this >> you have to start early as early as possible absolutely >> thank you, sharon you got to do it. >> take care >> it has to start in high school everybody wants to do it it is important. coming up, dr. scott gottlieb joins us on the latest vaccine news that's next. later in the show. anthony scaramucci joins us to talk about the cryptocurrency. i don't know if we will talk about dogecoin we might as we head to break. here is the s&p winners and losers. >> wonderful >> bravo sdp.

>> it wasn'tgreat. >> it could have been a lot better. >> it was pretty terrible. >> it s wabad. >> awful >> boo oomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. they deliver high quality food the same day. i was outside digging, what'd i miss? just everything regarding our physical, social, and mental health. exciting. i'm gonna take a spin around the room. great idea. ♪ ♪ petco. the health and wellness company.

sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers plus some of the lowest options and futures contract prices around. don't get mad. get e*trade and start trading today.

welcome back to "squawk

box. news from eli lily they are asking the fda to revoke the emergency use authorization for the drug for covid. not because there is a problem with the drug, but the nih stating the cocktails from regeneron be used. citing that with the drug so they have the cocktail a little bit complicated important nonetheless. joe. thanks, andrew pfizer's ceo the latest vaccine maker to say that regular shots will likely be needed to protect against the coronavirus. let's bring in dr. scott gottlieb a former fda commissioner and cnbc contributor and board member of pfizer we scour the headlines every day. i don't know, i have to say that there's a mixture of positive and really encouraging things

along with things concerning, scott. i don't know i'm coming down on the side we will figure out a way, science, to maybe deal with this. here is what is in the paper 5,800 cases of cohorts that got the covid-19 infection although vaccinated by both shots that's out of 66 million that's what i figure you would say that is 90% efficacy looks like, right? >> yeah. a low percentage of people you know, obviously over a defined time period. covid is still circulated. you figure contacted people are coming in contact with the infection. it is good news. reassuring that the vaccine is working. >> the other is that the variants, highly contagious variants are found all over the

place. but, it seems like even our vaccines would hopefully, if they are not customized for the variant, they still prevent you from the worst-case scenario does that mean we will always be distancing and wearing masks because a variant could be around the corner? >> i think that's right. what we have seen with the vaccine so far is they seem to bevariants particularly the south african variant because it had the mutation that pierced prior immunity the vaccines, particularly the mrna vaccines, seems to be effective from the variant and so does the j&j vaccine. we will not lose vaccines as a result of the variants in a short period of time we may need to evolve the vaccines over time we have the tools to do that

with the sequencing and the variants and when they arise and developing the mrna vaccines to develop against the new variants basically plug and play. you develop a new mrna sequence. that is one of the virtues of the mrna they can be quickly adapted. i think we iwill have new variants in hand it may be the case the existing vaccines and boosters are sufficient to provide protection against the new variants >> so we heard about fiepfizer d j&j and moderna with the possibility of the third shot. do we extrapolate that of the annual shot like a flu shot or you are not there yet that it will be like that? >> look, the studies are under way looking at a third dose of the existing vaccines.

also looking at a dose of the new variant. moderna and pfizer have studies looking at that. j&j is looking at the second dose as well we have to see what the data shows. it could be the case that the could heor cohort get a third de for the fall it is hard to predict what things will look like seven years from now or ten years from now with covid and how much the infection is reduced societally. you can see this being an annual inoculation. otherwise, the cdc is going to opine on who should get a booster of the vaccines going into the fall. people who were vaccinated early is likel vaccinated the elderly population and nursing home and people with certain risk factors

recommended for a third boost into the fall. we could see a situation where the cdc says anyone who was vaccinated six or eight months ago or over the age of 50 should get a booster to prepare for the winter that is a hypothetical scenario. it is possible to see the scdc issue that recommendation. >> scott, we have eradicated things in the past because there is no one to pass them on to years go by before we see the horrific diseases. is that not possible we haven't done it with influenza, obviously is it possible it goes to such a low level that no pockets of covid hot spots around the globe two or three years from now? is that possible >> we eradicate things with high vaccination rates and the

vaccine is a one and done vaccine. fully protective and for life. you look at measles and small posit pox and polio. we vaccinate children that lasts well into adulthood. we are eradicated those diseases and society is where we have vaccination level is that are high we will not achieve that here. a large number of adults resistant of the vaccination we don't have the vaccination available for children right now. when it is available for kids, there is a healthy debate over whether it is mandated for children to go back to school. it will likely be new oo in a majority of states that gets us to the set up of low levels you will still have pockets of the spread if you need to eradicate it, we need to make different decisions for society. >> behaviorally it may not be

possible. >> it is possible. we don't seem prepared to do it and take the collective action it will require. it will require people exe exercising civic virtue. if they are at low risk, they can get and transmit the infection. you cannot eradicate it if people continue to catch it and transmit it. >> scott, the policy question becomes from a private sector basis, this goes back to mandates or something else, incentives from businesses employing people, or whether you believe it is federal or state law or federal employees or state employees being mandated or incentivized. how would you do it? >> we're not going to be able to do it. i talked to enough governors now, red state and blue state governors who say they don't believe they can mandate it. you can see mandates at a local

level. this is a healthy debate for the fall you will see local school boards mandating it for the high school population this will play out at the community based level. we will not mandate it at the state level or federal level i don't think the political will is there to do it. i think businesses are reluctant to mandate it. even hospitals with health care workers when having the work force vaccinated and protecting the people they are trying to serve. if they don't have the will to do it, i don't think businesses will be willing to mandate it. as you see some start to do it, with one hospital yesterday, mandating vaccination. some start to do it, more will do it. i don't think enough will do it to get to the scenario that joe talked about that eradicate coronavirus. >> dr. scott gottlieb, thank you. very depressing as it is hope to see you next week. have a great weekend.

coming up when we return, short seller battle royale comparing quantumscape and theranos we will talk to an analyst who has a $600 price on that stock we will talk about that after this are your hr processes weighing down your employees? on to quarterly projections! expense report! if you're using multiple systems, re-entering data over and over time sheet! using email and spreadsheets to manage information and approvals, then your hr systems are a drag on productive time. with paycom, employees enter and manage their own hr data in a single, easy-to-use software. visit paycom dot com and schedule your demo today.

do they know this door is locked

welcome back to "squawk. shares of quantumscape calling it a pump and dump spac scam it makes theranos look like

amateurs dropping 12% on the session. it stands by the data and accuses scorpion trying to tank a short stock to make a quick profit i wonder if the reddit crowd thinks this is a short coming up, a big wrinkle in the efforts to get workers back to offices a survey shows as much as one-third of the work force uld rn down a job that would not allow them to work from home details when we return >> announcer: executive edge is sponsored by at&t business our people and network will keep you connected. let's take care of business. my something different. oh, we can help with that. 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.

welcome back to "squawk box. in a new survey, one-third of workers said they have or would turn down an offer for an in office job for more on the implications of what may happen to the future of work, i want to welcome allen gorino great to see you it's a startling statistic for bosses and those in management thinking about what the workplace is supposed to look like either now or come labor day. and the idea that people really do, it sounds like, significant amount want to work from home or at least part of their life has to work from home. how do you see this changing our workforce and our workplace? >> well, there is definitely a change [ inaudible >> i have seen this -- i anticipated this coming for half a decade [ inaudible

>> allen, i don't know if it's my ifb or your mike, we're having a little technical difficulty getting the audio there to work just right maybe what we should do is take a quick break. i don't know if guys in the control room we can grab them. why don't we take a quick break and get him back it is such an important story. and when you really do look at the polling data, it represents a significant challenge for a lot of businesses, especially those who want to bring their workforce back to work we're going to come back right after this, hopefully, with allen and that story

everyone wakes up every morning to a world that must keep turning. the world can't stop, so neither can we. because the things we make, help make the world go round. they make it cleaner, healthier, and more connected. it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works.

symptom futures little changed after the dow cross third dow down 34,000 for the first time ever and we're going to speak to an analyst whose price target is $600 for the stock and the nfl partnering with three major online betting companies. an exclusive deal. we'll talk to the ceo of one of the winners of that partnership. the second hour of "squawk box" begins right now ♪

good morning and welcome back to "squawk box. u.s. equity futures at this hour are higher after a new high again in the dow yesterday above 34,000 the s&p 500 indicated up two and change nasdaq giving down a little bit, down about 13 points p that's the only one of the three you can see that's in the red. bitcoin down 5%. and the ten year below 1.6%. and that more or less sums things up, andrew, unless we put a doj coin i don't know whether that is the future for us. fit keeps going like this, who knows? >> it would have to. >> and our choice now, and we need to talk this weekend. do you think we do a squawk coin or a squawk spac

>> you know, i don't know if you saw the cover new york magazine this week? it said can you spac your stonks with an nft? >> you tweeted that. i don't follow you, but someone sent that to me. >> i think we need to do a squawk spac. we need our own nft, clearly and maybe we can go find some old video of you, i was thinking from like 25 years ago, and nft that and then we should get our coin going. there's a lot of work to be done this weekend >> is there a way we can have a counsel that was part of the spac isn't a stonk a bad thing? doesn't it stink >> what are you doing? >> this may be worth something >> we can start the bidding. what would the floor be for that video there, the original video of that if there could be

something considered there original version >> if the deli in new jersey is worth $100 million with 35,000 in annual sales, i think we can start bidding at least, you know, $5 you think? $10? what do you think? >> i think we better get to the headlines. >> i think we should put a floor of $2 on it and see -- there it is can i spac my stonks with nfts i read that wrong. >> that too. that too okay let's bring everybody up to date on what the head monica lewinsky are at this hour pfizer ceo saying people will likely need a booster dose of a covid-19 vaccine within 12 months of the getting fully vaccinated he made the comments to bertha coombs at an event on cbs health he said that april 1st they were made public just

yesterday. he said it's possible people will need to get vaccinated against the coronavirus then after that annually. meantime, we're watching shares of coin base the stock closed lower this after jumping more than 6% early in the session then at 10:00 a.m., around 10:00 a.m., the company temporarily disabled withdrawals of ether tokens an recent upgrade to that cryptocurrency bitcoin and ether under pressure this morning meantime, shares of alcoa are higher the aluminum producer's first quarter earnings of 79 cents per share beat estimates of 45 cents. revenue beat the stock is on a terror take a look at that chart. up 500% since the pandemic low in march of last year. all of which raises lots of questions because we got some

recent economic reports that have been coming in stronger than expected. retail sales surging and jobless claims dropped to the lowest levels since march of 2020 so does all of this good economic news mean the recession is over? who better to answer the question than steve liesman who joins us with that steve, good morning. >> good morning, andrew. the recession is almost certainly over it ended months and months ago the problem is that it's not technically over until the folks at the national bureau of economic research meet and say so they haven't done that yet the president of nber told me yesterday that the committee has not tip beingly icily determineg date well, when is the economic activity the u.s. economy is almost at that point it may hit the gdp peek any day now. so the business cycle data committee could meet soon and

say the recession actually ended a year ago i guess that's the wrong full screen that's up there when the economy bottomed out. if you have that gdp chart, i can show it you to we'll move on. the more important question is this, it's whether the economy is fully recovered what you just saw after yesterday's data, he told me momentum isdefinitely building we already saw 900,000 jobs gained in march. everything suggests march is a blowout month. and april at least in job growth is probably stronger but if you look at the job market, there is a lot of work left to be done until we get the full recovery. what matters is not when the recession ends, it's when the federal reserve decides the economy has fully recovered so they can take back some of that

easing and fed chair powell and the officials are not looking at nbr. they said that's not the case yet. and may not be for a while i'm going to get a chance to talk about these issues with the new fed governor chris waller in his first interview today at 10:00 on "squawk on the street." andrew so the question is what is the typical timing for the nbr number to meet and figure out when the recession started and ended? >> if you were to wait for them to make the calls, you'd be a very, very poor person d you watch "lord of the rings," andrew >> i did >> do you know the ents? they meet and talk and discuss the nbr is the equivalent of the ents in december 2008, they decided that the recession began in

december of 2007 in september 2010, they decided the reception ended in june '09. they were pretty quick this is amazingly quick for the economic ents there. in june, they decided the recession began in february 2020 that was fast. they have not been so quick. i think if you look at that gdp chart that recession probably ended in the second quarter of 2020, maybe a little later >> so these folks are late what does that say about jay powell's plans he made it pretty complicit he almost wants to be late if he's going to raise interest rates. >> absolutely. and we're in a new kind of paradigm here where the fed is telling the markets, we're going stay behind the curve. they're kind of being the ents of federal reserve or monetary policy they want inflation to go up they want to see the economy fully recovered. there is a whole new paradigm. instead of saying we're going to reverse policy when our forecast

shows that we're going to be fully recovered, we're not going to reverse policy until we're fully recovered. and that's a new paradigm we're living through i think the market senses that >> do you remember tree beard, steve? >> yep >> also known as fangor in that forest and gandolf said that the ents are the oldest things on the earth living under the sun they all do. they talk but they sound like trees when they talk do you remember? they got really deep voices? >> it was -- i -- my favorite line, joe, is when gandolf said 300 lives of men i walked this earth and now i lack for time. i feel that way all the time >> it's true, isn't it but you know what, steve i want you to remember today we're as young as we're ever going to be and don't forget that. >> right >> and let's value everything we've done and everything we're still going to do.

that's the way -- that's the only way to look at it andrew doesn't even think about these things at this point he's like the -- you know, the millennials -- >> we are big thinkers >> the millennials think they're going to live forever. they never are going to gain weight or lose their hair. >> i'm not a millennial zblichlt don't know why i think that. i think it's not about an age. it's about an attitude, i think. >> you know, i always try to act young. to be young. >> there you go. all right. >> peter pan >> thank you >> tree beard. i remember i love him coming up, coinbase still seeing a volatile start from the first day on the public market the great analyst lisa ellis is going to join us to talk about her $600 price target. $600 say it again, $600

before we head to break, get a check on the markets "squawk box" is coming back.

it's down less than .5% right now. the market cap, hovering around

$63 billion our nest guest initiated coverage on the stock with a 12 month target of $600 but warns it's not for the faint of heart joining us now is lisa partner and senior equity analyst at moffett nathanson. lisa ellis, this is like the grecco hour which is almost like the twilight zone hour lisa ellis before we know moffett and ellis very well. thank you for joining us >> thank you. >> that sounds like a lot. what does the future look like and why don't we see the 2.5% commissions, if you will, that coinbase is able to charge right now? why doesn't that compress as other people get into the business >> i think on the compression, eventual i had sure but i think folks may be underestimating how

difficult it is to do what coinbase is doing in terms of creating liquidity and exchanges for cryptocurrencies as well as securelystoring and transmitting cryptocurrencies. they are bare assets, meaning they're like digital cash. so securely storing them is one of the most difficult challenges with dealing with crypto that is something coinbase spent the last nine years solving. and they run custom nodes on 15 different block chains in order to create liquidity in 108 different crypto assets. that also, you know, they're licensed, regulated in 30 different countries to do that like that's not the type of operations that traditional brokerage or traditional exchange is going to build overnight. i think that's a deeper mote, you know, has more sustainability, i would say. we would say, for at least several years than, you know, than people are expecting.

>> lisa, i have an account there is like 30 or 40 -- i don't know the watch page, i didn't add the things on here to watch. are all those things eventually viable investments in the crypto world? what shakes out and what is the future for doj coin like is that going to be a real thing? we have all these questions. we isn't haven't done the due diligence. >> different block chains and different coins are designed differently. so like what you're buying with you're buying each individual coin is a bit different. the two prominent ones are bitcoin and ether. in those cases, more well

defind bitcoin, of course, you're buying a version of digitsal gold with ether, you're buying more like fuel or oil or gasoline is what i would make an analogy to that is fueling the system when you move down the list, you know, to number 67, 68, no, the lay person probably isn't going to have a strong view of what those are. but, you know, the idea is these are all different coins that, are you know, sitting in different blockchains with different use cases and what you're buying into is the future of that use case could be nfts or finance, half a dozen other use cases for cryptocurrencies at this stage, because the only way for someone to get exposure to that is just through buying the coins, that's what a lot of people are doing >> i want to go back to the issue of trading we talked about whether he

should be comped again or the comparable companies should be, you know, the paypals of the world, the squares of the world and where they should be the trading firms. he said, look, you know, we're a combination of all of these things where do you pun them ultimately and where do you pun the old school finance companies that i imagine are going to get into this space and then do they get these -- do they get rerated as new comps or does everything else come down to them long term >> you can't get away from making some comparisons between coinbase and traditional exchanges and brokerages pt that is the business model that they're currently operating in however, our valuation and over the longer term, i'd say they're much more analogous to square or

paypal or even broader emerging technology companies you can roll that back to, you know, google and facebook back in the earlier days of the internet what coinbase is, i'm sure brian talked about this what coinbase is evolving into is more like a platform, a technology platform for cryptocurrencies or blockchain so microsoft azure applied into the blockchain world to enable the whole ecosystem and everything to work off these blockchains. that say role that is much more techie in nature and much less financial in nature. so when we look at comps for them, we're looking back and thinking about players, looking at comparisons like a shopify or paypal or a square or players like that, much more than the traditional exchanges at this point. but, you know, from a revenue and business model perspective, that's what they look like

zbl >> andrew, we can't hear you i'm going to step in bitcoin is very important, obviously, to coinbase, i would think. >> do you see it eventually moving beyond digital gold and getting stable enough to where it becomes a useful around the world in terms of payments and currency and everything else and the future that people believe or the store of value maybe or savings account for people all around the planet isn't it -- isn't coin base's future dependent to some extent on it making that move to wider usages >> coin base's future at this point is dependent, like you said

about 80% of the aum is in bitcoin. so they're absolutely tied at the hip right now. and the future is dependent on bitcoin gaining more mainstream acceptance as an alternative asset class and investment class really this concept of it going from the $1 trillion to $10 trillion or $11 trillion, more similar to a gold or other commodities. i am personally not a believer that we're going to start buying our starbucks with bitcoin no, i think that's a role that will be filled by stable coins like the usd coin or the u.s. dollar coin or, you know, central bank fiscal currencies but in some markets like super high inflation, like venezuela, they're absolutely have cases of people using bitcoin for mode of

transacting. that's where that becomes to apply. >> people forget that. we're at, you know, low inflation here but there are places around the globe and people do have smart phones where inflation is still just off the charts. you'd actually would want to have this. and then there's the store of value aspect as well we'll see. lisa, thanks you must do a lot, you know, you have to do a lot of background on this you only have 59 more of these little things and it's growing every day. keep us updated. >> terrific. >> lisa partner at ellis nathanson. >> that's how i think it should be. >> that's what you think all right. see you later. andrew my mike is working, joe. i was being censored here in the great -- in the united states i was being censored on television no joke of sorts. but nonetheless, coming up,

investor calling out elon musk he said they threw jet fuel on the gamestop trading frenzy. we'll bring you that story right after the break. the aflac post-pain show! aflac! what a day of upsets. ha ha. jill is certainly upset with that unexpected bill from her back surgery. aflac! let's see that one more time. ♪ ♪ (bleep) (wincing) oooh, right in the wallet! ouch! aflac! aflac would have paid jill cash directly to help with expenses health insurance doesn't cover. hold on, i think she's trying to give us a side-eye... because she can't turn her head! (laugh) get help with expenses health insurance doesn't cover. get to know us at aflac.com

welcome back to "squawk box. david einhorn came out swinging explaining biggest winners and losers and went on to criticize a little known new jersey based

deli joining us to break it all down, kate kelly, "new york times" wall street reporter great to see you a lot of people had a lot of eyebrows raised as they read this letter and it got passed around wall street yesterday what is your biggest headline? he took shots from elon musk to others and the performance issue. >> well, i think my biggest take away, personally, was about his discussion of the short market so i did a story back shortly after the gamestop frenzy about what this would happen to so-called real shorts. you know, people like david einhorn, perhaps, or more dedicated shorts like kadir or nate copicar in california because these are people that do deep research and try to expose fraud and other issues to the market they consider themselves to be sort of forces for good. although, of course, they're trying to make money at it as

well when shorts are lambasted and harmed by a huge runup not based on fundamentals as they were with gamestop and as they were to a degree by the other main stocks, it causes trouble for the whole complex, right david einhorn is not a professional short, per se he runs a long short book. but he for many years has been part of that band of people that tries to raise red flags when they see issues. his short position in lehman brothers is one of the bearish signs that company could be headed for a collapse to name one example. i think his frustration is palable and understandable folks like elon musk have such rock star status at the moment that they don't have to do much to kind of keep the party going in terms of the longs and the excited retail investors piling into either tesla or game stop or what have you >> kate, some people reacted and looked at that letter and said

who is calling the kettle black here you know, just as elon musk might be pushing stocks up or tamak is pushing stocks up, there have been lots of times where the likes of david einhorn are come on our air or, you know, gone out publicly and tried to push the stocks, for example, of tesla down and unfortunately for him thus far, at least, incorrectly >> yeah. no, it's fair enough i'm sure einhorn himself would admit that he has a power as well in some situations to push down names or possibly push up names. i remember doing my share of stories while at cnbc on the latest einhorn positions you saw market benefit the opinion leaders in the hedge fund space and corporate space as well cannot be discounted in terms of the value that their

advice and insights carry to others in the market and their potential impact on stocks that's why an idea dinner or an event like the conference where people announce their best ideas often has a material impact that we cover so i'm sure he would acknowledge that i assume he would say that the problem here is that what was going on with gamestop, for instance, was not a fundamentally driven story >> kate, we -- >> although we can't control tons of small investors for pro who's have done their fundamental research to add helium to the balloon, if you will, is irresponsible i think that's what i'm hearing. >> let's -- the most fun part of the letter is the deli tell everybody about the deli. >> you're going to have to recap. i don't have it in front of me >> joe, have you been to the del yi >> i have not. i was reading about it in the

notes. and someone actually knows about it hw -- i saw it i knew you were interviewing kate i tried to read everything that we're going to be doing the next day. i'm now told that it's a two year revenue total of $35,000 trading with $100 million market cap. i don't know what's going to happen to it at this point but, yeah, i thought you brought that -- yeah hwi, there you go, home town deli it's all right there, andrew i didn't make. that i saw that -- >> i he know i didn't know if kate knew about it he makes reference to this -- to sort of the craziness of pricing, kate. >> that's for sure >> kate can see that i think you got a monitor there, kate? that's -- i mean, i thought we need to change it. >> i'm sure gary would want to install a monitor. >> we need a couple of zeros on

those numbers to get anywhere near where it's trading, don't we >> right >> we do >> right i mean, it's just a wild market, guys, the point you're making. stock movements are unmoored from reality in many cases i think it makes it hard when yaur trying to look at fund. al cases and figure out what is going on or manage a book in the case of e einhorn. >> when was his last good year, kate i haven't followed him closely i remember horrific calls on gold way past the time when you should have been making them based on premises that never came through >> yeah. >> i stopped watching him. >> the short answer is a tough stretch but a really great to end 2020 based on long positions. i think that was a time when you were not seeing some of these irrational moves to the upside >> okay. >> right kate kelly, always good to see you. have a great weekend. >> good to see you too

>> still to come on "squawk box," morgan stanley results expected out any minute. we'll bring you the numbers as soon as they cross plus, we'll talk about president biden's corporate tax plain with kevin oleary and policy analyst alexis goldstein on the other maybe they'll agree. maybe not. "squawk box" will be right back. . (it's a skirt... and shorts) the world is going hybrid. so, why not your cloud? a hybrid cloud with ibm helps bring all your clouds together. that means you can access all your data, modernize without rebuilding, and help keep things both open and secure. that's why businesses from retail to banking are going hybrid with the technology and expertise of ibm.

fwgood morning and welcome back to "squawk box. analyst calls are driving the premarket action so far. cisco is higher by 1%, 40,000 shares of volume helping in part by analysts at wolf research that upgraded to outperform $63 price target next up, shares of simon property group which had are higher by 1%, roughly 3,000 shares of volume jeffries are upgrading this stock, the owner of retail real estate to a buy rating with $130 price target they think the valuation can grow given by investors and retailers and pent up consumer demand to shop wend on shares of comcast. the media giant and parent

company of cnbc gets upgraded. they say it's a $61 price target they there is upside for the business more growth for the streaming service peacock and theme park operations say it could be a post recovery covid-19 type trade. let's get to wolford frost >> 16% month over month. the forecast is 170. nice comfortable beat on every single line. they'll be pleased with investment banking revenues up over 100% year over year the forecast is closer to $2 billion. like the other banks, capital markets, strong across the board. fixed income, $3 billion the forecast is 2.1. wealth management, big $6

billion of revenue forecast was for $5.9 billion. and they'll be pleased with the margin now, stripping out integration costs of acquisitions, 28%. so such a big part of the business now sticky revenues. strong markgins there # compensation expense up a little ahead of markets. that is driven by strong performance. and the return on tan xwibl equity again when you strip out integration expenses, 21.4%. very impressive. the stock is up 1% you have to pause and say these are record numbers they're very, very strong numbers. top line revenue up 65% year over year. compared to goldman sachs which is up 100% year over year. but these two banks absolutely in the right place once again for this quarter very strong quarter for them >> very good thank you. >> coming up, it was a race, says here, to the bottom really

of companies -- countries around the world had been lowering taxes, tax rates for years and we at least tried to get more competitive now the idea of raising rates is sparking debate on that issue. what that could mean for businesses after the break and then the nfl striking a deal with caesars, draft kings and fanduel as a official sports betting partner. we'll talk to matt king about that and the state of online gambling we'll be rig bk.htac ♪ i don't care ♪ that came from me. really. my first idea was “in one quarter of an hour, your savings will tower... over you. figuratively speaking." but that's not catchy, is it? that's not going to swim about in your brain. so i thought, what about... 15 minutes. 15 percent. serendipity. 15 minutes could save you 15% or more on car insurance.

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. ♪♪

new projects means new project managers. visit letsmakeaplan.org to finyou need to hire.ssional. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home. up at 2:00am again? tonight, try pure zzzs all night. unlike other sleep aids, our extended release melatonin helps you sleep longer. and longer. zzzquil pure zzzs all night. fall asleep. stay asleep.

the issue of raising the corporate tax freight 21% to any level or new level, i should say, is sparking big deeps robert frank joins us with a closer look at where the u.s. would rank if the rate were to move higher. robert, good morning. >> good morning, andrew. ceos and companies saying biden's 28% rate would make the u.s. the highest tax country in the developed world. the white house and others saying they would rank near the middle if you look at that 21% rate according to the tax foundation, when you look at tax rates, you have to include state taxes because, well, they pay them

so a 28% federal rate combined with state taxes would bring the average u.s. corporate rate to over 32% and that would be the highest in the oecd list of 37 countries. even if the rate goes to 25%, the u.s. would rank seventh with a higher rate than france, canada, or italy now the problem is that the u.s. set off a global race to lower tax rates when it went to that 21%. many countries have scheduled tax cuts in the coming years so even a 25% rate would be less competitive especially when you add in biden's doubling of the rate on overseas income to 21% since no other country imposes an additional tax on overseas income guys lots of disagreement here. it's clear when you add in the state taxes which companies do pay that average rate will be 32% and the u.s. would be number one in the world

>> such a stickler for the actual numbers, robert it gets -- >> i like to do numbers. i like to do math. >> it is really irritating you know, if you have a narrative. messed everything up for me. thanks, robert joining me to talk about what is ahead for corporate taxes, kevin o'leary, shark tank investors and cnbc contributor and alexis goldstein. alexis, when we went down to 21, inversion dozen seem to have stopped. we did repatriate a lot of money that is no longer abroad do you -- would your argument than was a mistake to make our corporations more competitive? >> i don't think there was no meaningful increase in business

reinvestment we didn't see a boost to research and development we didn't see an increase in worker's wages what we saw is companies pushing out dividends to shareholders and buying back their own shares and majority of those benef rebounded to the top 1% that own the majority of the assets in the united states. we can't look at this in a microcosm. this is part of a larger investment plan that is going to create millions of jobs. much that's going to improve the infrastructure, repair our roads, our bridges, bring broadband to every singl american, every company that wants to bring its goods and services to the united states is going to benefit from that kind of infrastructure investment i don't think the changes made in 2017 fulfilled any promises they made. i think we need to make sure that corporations are paying their fair share and i think that the american public agrees with it.

this is a broadly public, popular ininfrastructure plan. when corporate taxes are part of the plan, the plan becomes more popular across the board with democrats, independents, and republicans. >> we just heard the actual facts from robert. so u.s. firms repatriated $1.4 trillion in cash that was previously struck -- stuck overseas real median income, household income increased $4900 that was more than the eight years of the prior administration the gdp was $300 billion higher than the cbo projected in july of 2017. business investment is $100 billion higher people that deny where we were in 2019 in terms of low end wage growth, nomore inversions. they were dliving in a differen reality. did you see benefits to cutting the rates? >> absolutely. the best metric is the

unemployment rate before the pandemic hit, below 4% we were building an economy with momentum we didn't see since the 50s. the idea that we would raise corporate tax rates is the mother of all really bad ideas you only have to look domestically to see what is happening and the competition between states i live and operate my businesses here in miami. why? i would never start a business in new york or massachusetts or california today with a mobile workforce, i thought i was going to have 15% of my staff not wanting to return to the office i was wrong. it's more like 22% to 25%. same goes for where you put a corporate headquarters you don't have to put it in the united states anymore to be globally competitive you can just see nike now, and getting tremendous momentum and

being able to sell product to everybody globally direct. if we think we're going back to a 2019 world, we're sorely wrong. if yellen runs around the world trying to get a baseline corporate tax rate, she'll come back with zero effect on that. if i'm in singapore, no chance i'm increasing my corporate tax rate why would i do that? now i'm pulling business into my economy creating thousands of jobs at the expense of anybody that has a higher corporate tax rate can you operate in singapore, new york, miami. i choose to operate in places where the corporate tax rates are lower. so does the rest of money that flows the path of left resistance we would destroy this economy while they still have nine million unemployed people. what is the point of flushing money out of a helicopter and package in a relief package and then immediately sucking it back in taxes how dumb is that idea.

we have to let this money percolate through the economy and get these people employed again and never ever, ever think again of raising corporate tax rates. i think we should eliminate them and tax usage and people then we would be really competitive. >> but the amount of -- >> what does fair mean considering the corporations, the private sector generates the jobs that is how we get employment and then the people that get employed pay the taxes on the wages back to the government what does a fair share mean? >> what does that mean define it. >> if you look at the percentage of revenues that comes from taxation in the united states, it's the majority payroll taxes and taxes on labor it is not a majority of revenue that is coming on taxes on corporations that's what i mean narrowing the gap. president bide den a good job articulating it saying small business owners are tired of being fleeced. if you look at the effective tax rate of multinational

corporations, it is 8% that's not what small business owners are paying. those are the engine of the american economy the goldman sachs analyst last month said that market was largely shrugging this off companies are smart. they're innovative they're not wringing hands about whether or not the corporate tax rate is changing they're focused on being in the united states. and frankly, i just want to parra phrase fdr, when people were scare mongering about tax during fdr if, people go, i shall miss them very much. but if they go, they'll come very soon because they're going to miss the united states. i don't see the giant investment banks leaving new york because of high taxes and i don't think we'll see korngss leaving the united states. i think this is a very reasonable thing to increase investment and infrastructure and we're going to have an increase in jobs that will account for all the people that kevin mentioned are currently unemployed this is investment in america that benefits people and businesses too

>> kevin >> you know, it's very simple. you have to think about one metric, jobs where do we create jobs? in american businesses where do we want american businesses in america you raise corporatetax rates, the highest in the world where will american corporation goes everywhere else. where will the jobs go where they go. it's simple. that's why switzerland and denmark and norway have very high tax rates on people zero corporate tax rates they get the joke. let's not make the mistake again and grind our economy to a halt when we have all the unemployed people by telling corporations don't set up here. the microcosm tells you, nobody starts a business in new york anymore. ever or massachusetts or california we move them here to miami where we save 17% in taxes you have to account for state tax as well. you only have to look domestically to realize we can't

mess with this now and by the way, china would love us to raise our corporate tax rates. are we in competition with them? we're at economic war with them. we'll cripple our forces which our soldiers of capital by making them pay this brutal tithe which is a completely useless tax if we want to grow our economy. frankly, i don't think it will happen remember, mid terms, less than 24 months away, they always lose seats. that's my insurance. i'm thinking to myself, yeah, go ahead. raise corporate tax rates and watch what happens to this really thin margin either party has right now i wouldn't make this change. i wouldn't risk it i'd simply wait until we get to unemployment rates below 4%. and let's debate it again. i love this requested that raising corporate tax rates is good for the economy very, very bad idea. a global competition

absolutely i'm sorry, we have to stay xpetive. i don't want to be the top of the corporate tax list p that sounds like a crazy idea. >> kevin, i look forward to you all taking "shark tank 2" to canada i don't think it will happen i think you'll stay in the united states. >> we'll see >> all right thank you alexis and kevin o'leary for the debate i don't want shark tank to leave. that means we can't raise taxes, i guess. i'm kidding. maybe we will. maybe 25 is where we end up o'leary. that's looking more likely i think they can do that to reconciliation and a quick note if you have a money dispute, kevin wants to hear all sides and help you determine the best way forward. go to cnbc.com/moneydispute and tell him your story. andrew, you got any -- we all do, don't we

>> i've got -- i'm going have to go on there right now and tell him about all my -- >> do it personally. ed have -- you know, you don't ne to go through that i'll give you his e-mail. >> and by the way, aren't they going to license shark tank?

caesars, draftkings and fanduel striking a deal to become the nfl's official sports betting partners let's get to contessa brewer with a very special guest. >> hi there, joe

nice to see you. let's bring in right now fanduel's ceo matt king. good to talk to you this morning. i want to ask you, it's a big departure for the nfl. it's a big deal to make the deals with bookmaking companies for the first time in history. but why for you is this attractive when you have to share it with your biggest competitors? >> for us, we're playing the long game. we think that aligning with the nfl is not just good for us but good for the industry. and so consequently, we're willing to share with a couple of our competitors we know on the open field of competition that we're going to win. >> so how does it work what does fanduel get out of it? >> so we have a number of great assets the nfl partnership is going to be off to a great start. one of the things we're most excited about the ability to use highlights in our sports book app. so we can create a really rich media experience within the app

for our sports betters we know there is a big trend towards convergence of betting and media. >> yeah. i mentioned it's a departure for the nfl. las vegas tried to get a 30-second tourism ad in on the super bowl and the nfl and roger goodell said no way. we've seen this departure. aacross the street the states, yesterday arizona's governor signed into law a sports betting bill can you talk a little bit about how you're seeing states expand and the difference in place like arizona versus new york where mobile sports betting was supposed to be the big deal and instead it is rather messy and complicated and confusing. >> sure. so on a macro, we see incredible number of states opening up sports betting and i-gaming. a lot is the fact that it is common sense legislation from a tax and consumer perspective and the covid-19 fiscal pressures

that exist every state is going to be different. arizona is a state i couldn't be more excited about we're partnered with the suns. we'll have a phenomenal luxury sports book right downtown and we think that it's a state that is going to be a great business for us. flutter owns fanduel are there any plans to spin off fanduel to be a stand alone publicly traded company? >> i leave the ipo speculation to others. we're focused on building the best business that we can. >> all right, big news there nfl and fanduel. matt, nice to talk you to. joe? >> sorry, contessa just checking out some of the major league baseball games today. coming up, we're going to talk

to the coinbase listing sky bridge capitol's anthony scaramucci and key housing data at 8:30 a.m. futures ahead of those numbers are now all in the green nasdaq turned around it's up 10 dow up is 62 "squawk box" is coming right back

the pursuit is on. 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.

[ humming ] alexa? play "ooh la la." [ "ooh la la" by cherie playing ] the moxie showerhead speaker. only from kohler.

good morning, the dow closing above 34,000 for first time we'll look at the biggest winners in the record run. and a wild first week for coinbase and the nasdaq debut. skyrich capital founder anthony scaramucci joins us. and economic news that will be breaking we'll get you a key read on housing market the final hour of "squawk box" begins right now >> good morning. welcome to "squawk box" here on cnbc i'm joe kernan beck ji off today. she'll be back on monday you're in on monday, right

>> i'm here. >> okay. i'm here very good. u.s. equity futures at this hour looks like will be solidly still above what we saw yesterday in the dow. amazing. first time ever above 354,000. it will at least extend those gains looks like at the open nasdaq indicated up 22 the s&p 500 indicated up up 7 points or so let's look at treasury yields which have now moved below 1.6%. they're now at 1.567%. pretty stable for a while. six weeks or so, andrew. we haven't seen what is troubling for maybe for technology stocks and the nasdaq we have not seen the worst case scenario stabilize did you hear someone mention one of our people mention japan that you're seeing some -- some of the buying is coming from japan because the yield is so much

more attractive here >> right zblment that is part of the premise that he had. when they didn't raise the ban, the bank of japan didn't say they were going to let rates go up more. that remove one of the risks that he saw and a rational for being so bullish six weeks ago or so. >> here are the other stories that people are talking about today. johnson & johnson reached out to other covid-19 vaccine makers to ask them to study blood clots. "the wall street journal" saying that astrazeneca agrees and pfizer and moderna declined saying the vaccine as paerd safe astrazeneca had already been dealing with blood clotting concerns speaking of vaccines, a pfizer ceo says people will likely need a booster dose within about 12 months of getting fully vaccinated he made the comments to bertha coombs at an vent on april 1st they were just made public

yesterday. he said it's possible people will need to get vaccinated against the coronavirus annually and in earnings news, morgan stanley posting better than expected numbers the firm dbenefitting from good banking results. we'll have more from morgue an stanley in a couple minutes from now. now to the markets and the dow's climb above 34,000 what is the date, santoli? >> april 16th. >> what do you think about selling may and go away this year is it wrong this year? i mean we've come so far it keeps going >> you know, i think it's not much better than a coin toss even though the bulk of gains have happened between let's say november and april i was joking yesterday people thought there was truth in it. when you move the tax deadline a month, maybe you sell in june this year. if it had anything to do with people throwing money in iras before the tax deadline and selling to pay taxes who knows exactly? we have a setup where the market

has really piled up a fair bit of gains we're up 5% in april 10%, more than 10% year to date. take a look at the s&p 500 over one year the things to keep in mind this steepening of the rally that we've seen recently, it's bearing a few resemblances to what we saw right here when we did accelerate late august and into that little peak on september 2nd. also, less kind worry smm into late january the same distance above the 200 day moving average as we are right now. so this was just a little chop that was obviously a 10% pullback connected to tech stocks i would point out too though, we had this little pull back in the latter part of each of the last three months after the mid part of the month. so keep that in mind too as we now obviously april 16th we've been using a lot of the bigger, more stable, more quality stocks to get where we are. look at the nasdaq 100 etf compared to the equal weighted version of the qqq

that is just on a one month basis. what you see here, obviously, the mega caps have just lifted off and taken care of things for the last week or so or couple of weeks. it's kind of like when, you know, a football team needs points to be scored by the defense. that's what's going on right now. the more defensive and quality sectors have been taking up the slack to a fair degree some of the speculative stocks have come off a little bit and actually to that point, take a look it at the overall health care sector compared to biotech. this is just a six month look. you see biotech had this massive run. this is really the peak of all kind of speculative hyper growth the highest risk april tights. game stop stuff hit a crescendo. slow and steady overall health care actually nosed above as of yesterday. so we'll see if this choreography can continue. it's been obviously bull ish an benign see if we can continue to stay lucky. joe? >> mike, we got -- so you got, you know, we seen bitcoin and

the spac world and beeple and the nfts, doggy coin is now worth like $40 billion or something. what straw breaks the camel's back for speculation, mike, or is it just ever, never -- this is all fine and dandy? what is the craziest thing where you say, okay, i'm done? >> i don't know if it will be one single crazy thing the point to keep in mind is that every one of the subsectors has come in for a nasty pull back and so spacs are well after the highs. that activity has sloan down you see the arc invest funds and related stocks are down. i wonder if we have the rolling connection that's have the pressure out of the kind heavy speculation. that is the absolute most optimistic case is you can keep

that stuff tame and walled off even if if other examples of excessive risk taking, you know, do pop-up here and there >> all right we're watching there is a few that i thought were big straws. camel is fine. back is fine move it along. fine doesn't need water stay with us let's add another voice to the conversation now liz young is head of investment strategy at sofi there is no doubt that money is cheap, liz and we're now on 1/6th again you don't see the, you know, any of the harbingers of doom coming right now. even in the bond market. so it's just let it fly still. >> the backdrop is as you just laid out, money has been cheap for a long time. yields have come down. the jitters in the market that we had because yields were rising so quickly in a surprising fashion have subsided so that sets us up for a little bit more success

the charts that mike illustrated show this as well. we have so many new highs. every time we get this extended, there may be a little bit of a pullback a little bit of a pullback is not necessarily a ka nair yea in the coal mine for this huge bear market i wouldn't want it to cause an overreaction i do think we're going to continue to go through a period of rolling corrections but that's okay. and ultimately, at the end of the year, we're higher than we are today. it's not necessarily going to be smooth though. >> could you ever see a policy mistake throwing a wrench in the works if we were to go to 28%? or if we were to, you know, we're spending a lot of money. i dmoent where that comes home to roost i don't know but is there a breaking point for whether it's fed policy or fiscal policy or tax policy? is there a point where that sort of poisons the well, do you

think? >> i would love to believe that policymakers are perfect and don't make mistakes, i think history shows us that it's happened before. it might happen again. i do think the market is more sensitive to fed policy than fiscal policy as far as taxes go right now. and there is a chance that there is something that gets signalled that spooks markets. but everything that we heard jerome powell say is that's probably not the case, at least not in 2021. so i think that fed policy stays pretty steady. the fed can and will wait to raise rates. i think that is probably something the market enjoys through the end of the year. the real question mark is if the market starts to challenge the feds, so if that ten year yield starts to creep back up, which i think it will, if it starts to creep up to a point that makes the ned nervous, how do they respond to that? verbal sfli do they do something as far as yield curve control? then the market has to digest that i think that is something to watch. >> amazing, mike do you buy that? that one guy, j. powell is more

important than how many politicians we got 550 or somethinging? 500 plus president, all the president's men and women, the cabinet, one guy no wonder they call him the most powerful man in the world. >> one guy and the consensus of all the entire committee but also, i think that mostly because the potential incremental tweak to policy on the fed right now that we can foresee might be more impactful than what we already know. the fiscal situation is basically baked. yeah, we might get infrastructure it's not -- next year we'll talk about fiscal drag because we're not going to have anything like the extra system laus packages we got this year i do think it makes sense to focus on fed policy. i don't think that his nerve is going to necessarily break, j. powells. the market has this push-pull situation. when they see the economy heating up, he can't stick it to we got people pricing in rate

hikes for 2022 or 2023 that now started to get priced out. the market itself is going to talk itself into and out of anxiety about that picture multiple times before, in fact, he changes policy, i would imagine. >> liz, did you take covid-19? i don't think either mike or you said covid-19. in the last four minutes is that just in the rearview mirror can we safely say that >> no. i don't think we can safely say that i don't think covid-19 is completely in the rearview mirror but when we look forward, i still think that the future is brighter than the present. and there are high impact low probability events that could come up. things like strain that's we can't control. we go backwards in the shutdowns. but i think those become lower and lower problemability as we o forward. you can't invest on all of those

high impact, low probability events because then you miss out on the high more probability events which are that the market can continue to make progress. i wouldn't want people to miss that economic expansion that continues to show in the data. >>, so liz, you like investing here you like pig cap, small cap, growth, value. you like international how would you structure things >> here's what i would say i say this a lot to everybody that i talk to about the markets. we talk about cyclicals all the time but what the does cyclical as really mean? cyclical sectors that's how we define it. if you invest in cyclicals, you look at the cyclical size categories, and cyclical regions, europe and emerging markets. they're dependent on those global trade volumes and as the global economy expands, that should see a benefit so investing in cyclicals. and that's really for the short

to medium term we reopen and a big burst of activities cyclicals should do well fina financials should do will with but then you shift into what is the long term economic prosperity trade what carries the u.s. economy forward? that's where i think you don't want to be uninvested in tech. i would even lump some of those tech stocks into the cyclical category >> anything else, santoli? i don't know what i was going to ask you. if there is one thing that could say we have 10% or 15% pullback coming, i don't know whether it is sentiment or are we bullish right now? >> we're very bullish. sentiment is the backdrop for that that's the prerequisite usually for getting some kind of a gut check. i think it's some kind of financial accident i always go back to this whether it is credit getting a little bit nervous. we saw this kind of meltdown i doubt that's going to be the butterfly flapping its wings usually it's about something that tightens financial

conditions somewhat unexpectedly. and hits a market that is already a little bit complaisant and thinking about only the upside i think those things also, the pace of the reopening. keep in mind, they had the blowout sales numbers. it's a pull forward. we don't exactly know if there is going to be a residual concern or caution among some of the population in other words, what is the normal level we're getting back to i think those are questions that could get thrown into the mix. and, you know, in a market that is priced in a good scenario already. >> all right mike santoli, thanks liz young, thank you it's been real and it's been fun. so it's been real fun. happy friday see you both >> happy friday, joe >> andrew? z . >> coming up, we're learning a lot more about the scandal and morgan stanley's exposure. we have the details right after the break. but first, as we head to it, check out this morning's biggest nasdaq movers right now.

it's hard to hope, hard to cope with crisis. so we get to work. we mend, fighting for every person in every neighborhood; we, the coming of the common good. so dare to care, to be hope-sided. we're never divided, when we live to give, we always live united. (vo) nobody dreams in conventional thinking. it didn't get us to the moon. it doesn't ring the bell on wall street. or disrupt the status quo. t-mobile for business uses unconventional thinking to help you realize new possibilities. like our new work from anywhere solutions, so your teams can collaborate almost anywhere. plus customer experience that finds solutions in the moment. ...and first-class benefits, like 5g with every plan.

network, support and value without any tradeoffs. that's t-mobile for business.

so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business.

we may are learning more about morgan stanley's losses. will we'll send it over to get details. >> included in that release, a single prime brokerage client which we presume, of course, to be the capital that, is not confirmed at this stage. led to a $911 million loss $267 million of xwsubsequent trading losses through the end of q-1 we were not expecting a material loss from them i think it took the market by surprise of course, the results otherwise including this loss still very impressive but they never made a comment on the record about this. i think a number of us both at cnbc and elsewhere seem to be guided by various source that's there wasn't going to be a material loss in the same way

that we were reporting on goldman sachs. so i think it has taken the market somewhat by surprise. it raises a question about risk management or execution within the prime brokerage unit why was goldman sachs able to exit without a loss in a way that morgan stanley wasn't and again, slight question for the earnings call, is it all over they do say for the subsequent trading losses, aspect of this which is a smaller part of total $911 million loss, there is still some at a loss selling to have been done early this quarter. we don't know. a small additional amount fit was. my question for the earnings call, they may not address the questions, andrew, how is this one stock? you'll remember, of course, when all that started happening, there was chinese stocks involved:there was some discovery and cvs and viacom the added point is that they had a secondary offering days

earlier. which morgan stanley was the lead book runner based on an article we did in that time. we did report that goldman sachs had started its selling of that particular stock of the block that's were being sold a little earlier than morgan stanley. we didn't know at the time if that was because morgan stanley was the lead book runner they felt uncomfortable pulling the trigger on the sale. or if this was a bigger loss because of broader aspect of risk management and broader aspects of acting fast enough compared to goldman sachs. there are lots of questions on the call because it is a specific client. i don't know how open they'll be >> wolf, the question i ask you about who went first in terms of being able to sell to me is an interesting one. i remember at the time reporting that the way the accounts that they had at goldman sachs, they -- goldman sachs effectively had to wait for the other banks, morgan stanley

being one of them, to effectively declare a default. that creates a cross default across the banks because the way the goldman sachs account worked was they had to otherwise wait 24 hours for them to cure things no the to get too far into the weeds. but it's always sort of baffled me as to why morgan stanley actually wasn't first up out of the gate to try to sell some of the stuff. >> it's a good question, andrew. my own reporting on it was that all of the banks were trying to help the prime brokerage client for a period of time and also probably thinking it would be ideal for all of us if we could all avoid some flash selling and then a point came where a decision was made and who exactly moved first we don't know how much they let down the clients or rivals we don't know. everyone started to sell and

then everyone tried to credit suisse was slow to the game others like goldman sachs were quick to the game. morgan stanley wasn't quite first. but was early. and we thought early enough not to have the big losses it does have a $900 million loss i'll be interested to see if we get more information because they were the front-runner and lead on that secondary pacing was a factor. >> okay. appreciate very much great to see you have a great weekend when we come back, we've been talking a lot about infrastructure that infrastructure plan coming out of washington. but there are also some ambitious construction projects happening in china right now they could have major implications for the global markets. we have a live report on the ground there when "squawk box" comes back right after this. the rx crafted by lexus. get 0.9% apr financing on the 2021 rx 350 experience amazing at your lexus dealer. this is wealth.

get 0.9% apr financing on the 2021 rx 350 ♪ ♪ this is worth. that takes wealth. but this is worth. and that - that's actually worth more than you think. don't open that. wealth is important, and we can help you build it. but it's what you do with it, that makes life worth living. principal. for all it's worth. everyone wakes up every morning

to a world that must keep turning. the world can't stop, so neither can we. because the things we make, help make the world go round. they make it cleaner, healthier, and more connected. it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works. for skin that never holds you back don't settle for silver #1 for diabetic dry skin* #1 for psoriasis symptom relief* and #1 for eczema symptom relief* gold bond champion your skin

as president biden tries to pass a $2 trillion infrastructure plan, china is putting money into some very ambitious construction projects. we're now from habi province near president xi's perfect city in xangan province >> all right

i had two of them. i was going to ask you on both not bad. like a b b minus. >> you're really good. you're really good china, as you can imagine, is not shy of investing in a lot of these infrastructure projects including the one behind me for this province alone, beijing earmar earmarked $95 billion in infrastructure for the next five years and that includes the newly created city >> a 62 mile drive south of beijing, china is building a new city from scratch. president xi chose this location in 2017 arguing that turning a sleepy back waters into a model smart city would be a strategy for 1,000 years for china. the model city called xongon comes with a high speed railway station as big as 66 soccer

fields, covered by solar panels and the station is already up and running taking in trains traveling at 220 miles an hour that cut the trip from the chinese capital by more than half to 50 minutes the area is set to equal new york city, chicago, and san francisco combined for an estimate 10 million people by 2050 technologies being tested in, some cases forced like in the most developed part of town. the government wants to show that china's city of the future is high-tech and environmentally friendly you can't drive in with a regular car. all transport is electric. so companies like alibaba's logistic arm tifrpg we are self driving evs to help workers and residents. >> there's no official amount of money that is set aside for this town morgan stanley estimate that's total investment could be $370 billion in the next two decades. and that is just for this one

city but, of course, all the spending does have a cost rising debt levels of course, a major concern, joe, for a lot of investors around the world. >> trying to figure out that gdp number too while i've got you here. amazing number but compared to the trough a year ago, so if you back that out, it was below recent years of china growth >> yeah. >> yeah. that's right so because it was comparing against the pandemic, the number looked really, really good still. missed expectations. so people going forward are a bit concerned about where china's going. but, you know, at the same time, it's very likely going to meet or beat probably beat the government's own annual target the government had set the target so low at 6%.

so most people think that the government has wiggle room to be able to manage the economy >> in the past, we thought china was overbuilt with empty, you know, empty perfect cities that were put up just to keep the construction and all the industry and keep everyone working and employed is all that supply soped up and now can you start and go again you have enough people to do it probably china does >> no. and there's been -- there's been criticism of the policymakers even for this set of numbers of the gdp numbers. that still so reliant on infrastructure as well as exports as opposed to rebalancing the economy so that consumers would take a larger part the counter argument of all this spending, you mention the waste, the counter argument is the economy still a big one and still developing you still do need a lot of the construction projects even

though some of them have been wasteful so there is a counter narrative there that china does at the end of the day still need a lot of the infrastructure and from chinese perspective, you know, we always hear from the government that they want to make sure that the country is competitive and that means building a lot of these roads. >> all right good to see you. thank you. housing starts hitting the tape right now. rick santelli standing by. what are the numbers >> yes, joe. this is our march read, of course, on housing starts. 1,739,000. well above our last look 1,766,000 permits. very close to the zip code of expectations which were 1.750 or 1.75 million a positive revision making last month's less negative originally released at 1.68 moves to 1.72 million we know the issues with housing.

affordability single family homes. there is a shortage. almost four million. i think the expect number is 3.8 million. we need 3.8 million single family homes everybody, of course, seems to be at least to some extent migrating from multidwelling or city living to maybe out in the suburbs, single family this dynamic is real i didn't think issue dianne olick is talking about. whether it is the amount or commodity, lumber prices, copper prices, it all seems to be working against the big positives we have experienced. but at least in the headline number of housing starts, we'll have to break it down in the single family and multidwelling which i can't do with the data i see across the wires that will be the defining information regarding this number joe, back to you >> only we had had diana olick with us. you just referenced -- wait a minute wait a minute. diana olick, are you really here

with more reaction >> i'm really here and i really have that information for you on single family versus multi. >> awesome liesman is here too. go ahead >> yeah. i'll just say that single family actually did really well in housing starts up 15% for the month up. multifamily up 30% the multifamily number is a little more hinky. it is very volatile. that single snub a great number on housing stars we want to throw out the year over year comparisons for march, april, may we know the housing market, home construction ground to a complete halt last year at this time when the pandemic struck. so we want to only look at those monthly numbers. you see a 41% increase in starts from a year ago. that's not worth noting. so the 15%, yes. but rick mentioned something very important and that is that the builders are very concerned about rising prices for lumber. this week alone set two new record highs in lumber futures that shoelding them back just a little bit also interesting in the builder

sentiment yesterday, we saw that buyer traffic and current sales are still doing really well. but sales expectations over the next six months were lower and that speaks to what the builders are seeing about demand going forward in a lot of that may have to do with prices so when we look at permits, we see permits up 4.6% month to month. not as much as starts. that's on single family specifically so not quite as bullish going forward. very strong right now. back to you. >> what do you say, steve? >> i think we have some, you know, a little pollution in the data i'm hoping diana agrees with this you have those storms back in february you had bate of a bounce back. hard to see what the true state is of the job -- of the housing market right here. you have rising interest rates that impacted the margin you have the rising costs. but the idea that the starts are 19.4% up from march, i mean, it stit looks like it is good days.

housing is a big contributor of one of the most interest rate sensitive sectors out there. big way that they helped keep the economy going. i don't know, joe if, we have a second here. rick, yesterday i talked to a bunch of guys in your market there. the bond market. and they were kind of out of breath they had lost a buck and a quarter brer the first martini after the market closed at 3:00 or so. and they were a little scratching their head what is going on they said there wasn't demand back n the japanese maybe cam back a bunch of folks were short in the bond market. just wondered if i could get your two cents on what is happening out there right now. that bears on diana's beat >> i think we can talk about all the issues you brought up. of course, i can't tell you that anecdotally every one of those issues is not important. but to me, if there is one overwhelmingly large answer as to what happened yesterday, technicals technicals you know, it was in february when we had that original spike

when out of left field we spiked up to 161. i know joe remembers that at the end of last year, he said what is going to be the big level for 2021 what did i say 1.66 that spike at 161, once we traded back above that and a couple weeks back in the march, we never traded below it march 11, we popped through and never traded below it. it became a floor of important magnitude. lots of options were tied to that level once we started to trade under it, it really was a self fulfill fulfilling prove you is to some extent the biggest level of all is right around 130 >> i don't remember that conversation but i'll have to take -- i remember when i asked you -- >> i can go to the tape. i can go to the tape >>, no i believe you i remember when i asked you about -- about the traders and you talked -- you said president

obama maybe we need a tea party. i remember that moment that sticks in my mind that's in history books now. >> we still have the top shows >> joe joe? >> like michigan, we're trying to drag him out. >> joe you see how this works? if if rick can get in under control. i get bigger numbers to plug in and you can take us to break >> and then tell us the recession is over maybe. a year after it happened steve liesman, thanks. >> okay, when we come back, we have skybridge capital founder anthony scaramucci he is talking about the market debut that everyone is talking about, coinbase and also what is happening to the price of tcn evything else. stay tuned you're watching "squawk box" on cnbc

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. ♪♪

visit letsmakeaplan.org to find your cfp® professional. labradoodles, cronuts, skorts. (it's a skirt... and shorts) the world is going hybrid. so, why not your cloud? a hybrid cloud with ibm helps bring all your clouds together. that means you can access all your data, modernize without rebuilding, and help keep things both open and secure. that's why businesses from retail to banking are going hybrid with the technology and expertise of ibm.

welcome back to "squawk box. andrew, i don't know if you -- you haven't seen this. i have a surprise for you that i've been working on i want to get to your take on this do you have a monitor? >> i'm looking right at you, my friend >> i don't know where it's going to start trading >> look at that. >> i don't know where it's going to start trauding or what it's going to be worth. i have no idea how to mine one of these things. but i set to working on it we might need -- we need to put beck any there n. there too. it's just us to day. we started on that i like the look. i like it. look at the little stars and stuff. why not?

is there -- you know, i asked santoli, what is the top when all the fluff is just so much that market has to collapse? this could be -- this might be it >> so how many are we going to produce? what are we going to restrict? we have to make it a scarce resource >> right 20 million you can't get real scarcity with $21 million. theres no way. $21 million -- that's too much how about $20 million? $20 million. bitcoin is 21. it's not scarcity. >> i think there may be one, joe. >> maybe just one. all right. >> that's going to be fun. i think we can ask him when we go buy it. skybridge. >> we have to -- maybe he'll create the reference price for us we're going to talk to him right now. talking about reference price because it was reference price this week to coinbase and after the historic direct listing, it dropped again yesterday below

that well, not below the reference price itself, but nonetheless, we're at $329. joining us right now to talk about whether this was really a seminole moment in the world of crypto anthony scaramucci, cnbc contributor. anthony, how seminole or not do you think this moment will prove to be? >> yeah. seminole i mean, i'm shaking off the crypto mount rush more pictures of the two of you. i'm a little dulled out by that. but, no, it is very seminole, andrew, because you have to think about it if we're right and this continues to expand, we can have the debate over whether or not bitcoin and other krip he could currencies are assets or digital currencies but it being tied to bitcoin and bitcoin being over a trillion dollars in market cap and there being a central clearing mechanism, what i'm surprised about frankly is there isn't a

wakeup call at the banks, the commercial banks like there was for the netscape ipo bill gates thought the internet was a fad. he then realized what was happening with the netscape ipo and he deployed several billion dollars into an internet strategy which led to explorer and adapted and pivoted into it. i'm surprised the commercial banks, people like jamie dimon are not pouring noon a clone of coinbase, frankly. i think this is a seminole event. i have to point out that i own this stock and i like it. i will say one last thing. it trades like facebook and google traded in the first couple of days, andrew p people were looking at lackluster performance >> let me ask you. i don't know if you had an opportunity to see us -- see the program yesterday. but larry fifrpg was on.

and, you know, interestingly -- he has, you know, he has conversations constantly with big southern wealth funds, big pensions the big corporates out there the many of whom you speak with as well given your role in the world. he said that he's not having conversations or they're not inquiring to him about crypto and about whether they're going create all sorts of different products and things to get exposure now maybe they're not because they know he's been a little skeptical of this. but i'm curious what your reaction was to that >> well, i did watch the interview yesterday. i have an enormous amount of respect for larry and his entire team but i think he said something seminole in the interview. he said rick reeder and himself and others, they've invested in it they've made money in it that's what he said to you but i do understand the fact that the sovereign wealth funds and so forth are not ready yet you saw what is going on in turkey they made an announcement that

they're banning the use of crypto in the country of suturky that could happen in other places where the currencies are unstable and they don't want this introduction of bitcoin to be a source of trading for their citizens they feel like it will take policy away from their central banking community and the politicians. so i do understand what larry is saying i think what he is saying is probably true. but then that just speaks to, andrew, how early we are in this cycle. if you look at a stock to flow model and you look at the scarcity of bitcoin as an example, if what larry is saying is true, then that would make an even more bullish case for bitcoin. meaning, at some point they will gun that adapgs. they're not there yet. the saturation level just isn't as high as the people in the coin realm think >> right >> i think that's what i got out of the larry fink interview yesterday. >> anthony, you made a point recently that i have to say i

thought was a very smart one we have a debate on this program constantly about whether bitcoin is a asset or is a currency. and you said that perhaps we shouldn't think about it exactly like that. because it could be a currency but maybe not for day to day transactions the way we think of currency but perhaps from very large -- for very large transfers of currency does that make sense explain that >> yeah. well, what i was basically -- the point i'm making is that it right now is not good to buy a starbucks. you probably would need the lightning and better technology for that but you can move bitcoin you can move a billion dollars of bitcoin instantaneously it settles very quickly. you can move it from $5. there is six or so transaction that's happen on the blockchain that clear it. it's absolutely safe

and secure and so that's going to revolutionize the way people move money around for transferring of goods and services moreover, whether we like it or not in the united states, dollar supremacy, there is great consternation by many other countries related to dollar supremacy. so you can see it incentive for other countries to want to trade in something like bitcoin. and so as bitcoin starts to scale and becomes less volatile, andrew, that's going to happen >> andy, real quick. two questions. we're watching this with bitcoin fall here a bit this morning i don't know how much you think that's just, you know, people rushing in and getting excited with the couninbase ipo and som people selling on how much it moved or is it real qula is happening in turkey and whether you think other governments do the same thing and even if they do the same thing, how controllable that is? i would assume that if you do it in a private wallet and you

write the codes down, it's going to be very hard for government to control >> well, i mean, i'll answer the first one. there is always a black market when governments go to do that and i do predict other governments will do that because they are in this in this policy dilemma, with their own currency, so that's a knee-jerk reaction to do it. in jijz, nigeria in bitcoin is selling at a 30% premium for example. but could it cause a price disruption near term yes but the genie is out of bottle 110 million users now and predicted more by 2025, and i don't thinkthat stuff will necessarily stop it. and as the coiners look at bitcoin, it's traded down to where it was three days ago, which was an all-time high, three or four days ago, so there's great momentum in this i said to joe on the show a

couple months back, we have a $100,000 price target on bitcoin, closer to 100 than when i said it and i still believe that's going to be the case. >> great to see you. have a good weekend. >> i love those pictures. >> you had much would you pay for our coin >> well, i'm at like a astoshi right now, but if you put becky on there, i might pay a full bitcoin for it. >> we're making one now. >> you know what a satoshi is? what is that a penny or something that's not enough. come on. >> not that much. >> no, it's really not. >> but with becky on, there it becomes super valuable. >> much more valuable. >> 20 million? you heard what i said. 21 million, you can't get real scarcity with 21 million 20,500,000, maybe. and just under bitcoin and worth 60,000 minimum.

>> just remember we lost about 3 million bitcoins and probably only down about 18, 19, due to poor storage in the beginning. >> that's why i'm afraid of it you got a private wallet anthony? >> do i have a private wallet? >> i store mine at fidelity. >> good idea deposit boxes. too complicated and i can't remember my password and i just use 1234 on everything i shouldn't have said that thank you. we'll see you. let's check in with jim cramer on the day ahead what's going on, jim you need to buy doge coin? >> is it dogecoin? >> i haven't bought doge i was thinking about how great certain companies, the stocks are acting here. ppg last night, tremendous numbers. alcoa, amazing numbers and these are traditional beginning of the reporting

season cyclicals that show to me that they have pricing power and i know yesterday was a day where we saw the health care stocks go up, but i think we'll go and see some industrials up along with health care so there's a lot to like here. and if interest rates go up. >> and alcoa, amazing how far that has come. >> we used to say symbol aa, so they report first. like ak mi in the phone book or something, jim, right? acme in the phone book, or something, jim, right? >> a fantastic number. they cleaned up the balance sheet. >> excellent thanks, jim. see you in a couple of minutes. >> and tonight on "mad money," quantumscape's ceo will join jim live stay tuned you're watching "squawk box" on cnbc

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. today, more than 100,000 of us are innovating to ensure spaces are more efficient, healthier and safer. abm. making spaces healthier for you.

welcome back to "squawk. joining us right now for her take on the markets is the chief investment fficer, karen, good morning to you. >> good morning. >> as we think about this friday, going into the weekend here, given all the numbers and a bit of a wild ride this week, what are you thinking about? >> i'm thinking that things are going so well that we have to think of something that we don't

like right now, we have inflation, rebounds, reopening, earnings are coming in, and they're just not beating expectations, they're just trouncing expectations, where beats are usually 3 or 5%, they're coming up at 20%. that's really good news. i think investors are keeping a wary eye on inflation, and for now, we are doing a good job of towing the line and believing the fed that they're not going to raise interest rates and that inflation is going to be transitory and i think we will see a lot of inflation, especially coming up over the summer, as things really reopen, but so far, things are contained. >> what do you make of what's happened with the 10-year then, karyn? all week long. >> i think it's a little bit of an oversold condition. we went so far so fast, and remember, the cure for high yield is high yield. and at that point, the rates were attractive to investors that are looking for yields, we still have a lot of global

investors looking for yields you take a look at the 10-year in germany and it is negative 30 basis points so yields have become very attractive and i think investors are locked in when they could but don't be fooled by that. >> if the rate comes down even more, what does it do to the great rotation trade out of some of the big tech companies that benefitted during the pandemic do you have to start to rethink some of this >> i don't think so. i think there's been a lot of rotation and more of a rotation to the value stocks and some of the cyclical, but remember, those large tech companies, a lot of them are, that's where a lot of the growth is, and that even though we are having this reflation trade and this rotation, that at the end of the day, we are still in somewhat of a low growth environment and those large tech stock, that's where the growth is so even though that we're seeing the rotation out of that, i would caution investors, not to

abandon those large tech positions, because that's where growth is going to be. so even though we're tilting more towards value, and more towards cyclicals and financials, that those large tech stocks are going to be there when you need them, too. so i would say that the investors need to make sure that they're exposed to some of those as well. >> i don't think we can do a segment without asking about crypto these days. are you putting your clients in crypto >> not yet but we're waiting for the "squawk box" crypto, the scripto, or whatever it is, not yet. i have trouble valuing it and the fundamental underlying value of it, and so i think it's becoming more widely accepted, and i know that institutions are now jumping on board, and with coinbase, but i think it's still a little bit too early for my investors. >> well, now that we have the squawk coin coming to market, i think you may have to rethink it all. so we're going to offer that to you first.

>> absolutely. >> it will be a friends and family offering. you bet. >> thank you >> have a good weekend >> thank you. >> definitely. >> thank you. i feel like i need to write some code this weekend just to make it a legitimate thing that might be rough. i got to buy a book. andrew, and becky, will be on that coin on monday. the three of us. make sure you join us to see it. have a great weekend "squawk on the street" is next good morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures pretty steady. a day after moving dow 34 k for the first time 10-year 1.57, coming of that five-week low. our road map begins with wall street's record run. stocks on track for another bounce at the open as the dow does close above 34,000 for the first time plus morgan stanley had a strong