story. i'm just so excited that that -- what's it mean for ted lasso >> hundreds of billions of dollars. >> you've never seen anything like it. this is going to happen, people are going to be throwing arrow, the drama, the soap opera of what is going to happen next is unbelievable. >> it will be interesting for the sports aspect of it, too, not just the money, right? >> futures down 50 we'll be back tomorrow be sure you join us. "squawk on the street" is up right now. good monday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber slowly working our way back to normal this morning with jim and david on set together for the first time post-pandemic futures are a bit slow out of the gate after the first four-week win for the s&p, since august, earnings of course kicking into second gear coke and harley, ibm tonight, our road map begins with this crypto rollercoaster, of bitcoin recovering some of its heavy losses from the weekend, plus

coca-cola beats on earnings, as demand in march hit pre-pandemic levels and disney ceo thinks people will return to movie theaters post the pandemic which hopefully will be really soon. carl >> yes, we're getting there. by the way, guys, it's great to see you back together on set, jim. how does it feel >> you know, i have to tell you, david came on set, and i was talking to andrew, asking some question, and i felt the need to be more bold, because when david is with me, i am emboldened. >> that's scary. >> because he is the best. >> well, it is really good to be within, almost within like reaching distance of each other. if we actually reached out and touched each other, management might separate us though. >> i think so. because -- >> some net would come down. >> because we have not been super duper vaccinated, wea've only been vaccinated.

>> >> apparently. >> do you have the vaccination >> yes >> and did you get the shingles vaccine? >> i'm in that age group that i do need to but i haven't yet. >> i had some people over and i said hey, guy, everybody been vaccinated because obviously i meant like, are you clowns vaccinated or not? right? >> yeah. >> when you get together with people but then it goes away quick limit i've eaten inside a restaurant now and for five minutes, and then, you forget. >> yes i was on a plane the guy was coughing next to me, carl, i said oh, my, thank you moderna, thank you bancel, this guy was coughing his head off. >> you will have a mask on, on a plane no matter what. >> still. >> still, carl. >> you know, it's important to keep track of, guys, some of us are not yet fully vaccinated, we're close but we will get there. i did notice over the weekend in new york city, you no longer need an appointment if you're at a city vaccination site and

you're over 50 years old and cdc as of this morning, guys, every american over 16 years of age is eligible as of today, so we're going to obviously keep our eye on all of that jim, the bitcoin sell-off over the weekend, flash crash, down 14, early sunday morning, any idea what you think is going on? >> i don't know. i mean i think that there was a time, i read an advisory over the weekend saying this is the breakdown we've been waiting for, look out, don't touch it. and then there is this rear guard market action. one thing i've seen with a lot of these, particularly with the nfts, is there are people who come in and create the market. david, when you mark a market, when you create a market, it tends, in these particular currencies, to work, usually it would fail but you'll get someone who just says i'm taking it up, because i don't want it to fail. and nft is in particular. >> and nft is tied into ethereum

more tightly, isn't it >> you have to buy ethereum, of course i have ethereum and i have american express and i like that better. >> when it comes to bitcoin, jim, and the movements here, how do you advise people at all, can you really give them, i mean what do you tell them? >> i've got my "time" magazine today, "time" magazine is butting out the news that you can buy anything except crypto, crypto anything. they're accepting 32 cryptocurrencies so i went to them and i said all right, are you going to immediately convert it to dollars? and they say no. so i'm goingto tell you, i'm going to get like a lifetime subscription with the doge coin. dogecoin was a joke, carl and suddenly i can get all of the "time" magazine i ever wanted. every bit. lifetime. >> dogecoin has been incredible, hasn't it? >> they don't need ethereum. >> so many questions what should

be taxed or not, in terms of when you book a gain or whether you use it if you're buying a tesla with it. >> you got to make your move right now. >> because you don't think, because they will be taxing at some point. >> they will catch up. but right now, i think you make your move. and i think, carl, there are people, i mean i was going forth with the ceo this weekend, showing him a picture of the house that i got, thanks to bitcoin, and i felt like, well, isn't it a great trade to buy land for bitcoin, one is definitely more permanent, which one, carl? >> yeah, i saw it written up, was it the new york post, i'm not sure what story it was over the weekend but about you and your home purchase, and the role that bitcoin played. pretty incredible. by the way, guys, a couple more initiations on coin base. cfra initiates buy 400 and there is a buy 600 and people are starting to take some stock of the insider sales

over at coin boyase. i think 5 billion in insider sales. brian strong about 200 million i believe. >> they have been tied up for about a decade, and i have to expect when do you a direct offering you will have to deal with it. i think that coin boy, coin basn cathie wood will come in and buy it up. >> she likes to create her own markets. >> she is a big buyer of shares of companies going public. >> if it has an engine that's clean and it's autonomous, it will find itself in her portfolio. >> 331 here as you point out, certain people motivated to sell here, that have owned the stock a long time, that have the ability to do so, that's a key part, how much can you actually sell, if you are an insider. >> have you met with management?

>> no. >> very impressive >> they are? >> extremely impressive. >> why >> totally rigorous about this really expect that they are in many ways the wallet and no one else really, this is the important thing, the other guys, so to speak, are not trustworthy, in coinbase's eyes, and you can tick them down and they will tell you why the outfit that you're using is not trustworthy. and they are very verified, when you use bitcoin, david, you tend to think, i don't know, jamie dimon doesn't have it in the bank, and brian is not taking it, who do i use and then suddenly, you discover that coinbase is the one that millions of people use and you feel more confident. >> right which is key >> right >> probably the key. >> yes >> because you can't see it. it's daunting. carl, i find it daunting when you're doing it, because usually someone in your house is saying, are you still playing around with that joke and in the meantime, the joke of

making more money than anything else i've seen in a short period of time. >> as we've said, guys, bitcoin, the top performing asset of q1 anyway, and we'll see to what degree we see ongoing volatility speaking of volatility, jim, we will see gamestop open up about 10% or so here george sherman is out. which of course some earlier reports had led us to believe. it sort of brings to mind the note over the weekend from david, out of goldman, that online retail call option volume is down the lowest levels since late last year and david asking some questions about overall volume, and whether or not the retail trader is truly taking a step back. >> i think the retail trader devolved into gamestop, and then gamestop periodically, adam aaron, then back to gamestop i call it a single issue site.

wall street bets you know, you have single issue politicians. >> yes. >> this is a single issue site they care about gamestop they got their guy, david. sherman has been there for two years. no one thinks about the, about what the stock has done under sherman, right sherman took it from what, well, it's not allowed to, it has to go 100%, to your man, cohen. >> right >> well, it's your man cohen because you're the one who has talked about him a great deal and have spoken with him, with reverence, to a certain extent. >> yes. >> i mean -- >> absolutely. >> and a stock that could be $170 today and market value that could be well over 11, 12 billion, close to $12 billion. >> i think he has to do with "time" magazine. >> does that in any way reflect the fundamental prospect force this company at this point >> i don't know. i will have to check with the single issue people who still think it should pass 400 carl, here's what i know about gamestop the stores are not where the action is. but if cohen were to take up my

bank of ethereum, that he just does crypto banking in all of the different stores, he will do this and take credit and the wall street bets people will say it's all their idea, but they have to go crypto, carl, because otherwise, they have to have, they have to have giant at the end of the mall, giant gaming palaces. where there's no latency using nvidia chips and playing games, carl. that's what i predict. >> you got a whole vision there, don't you? >> i have, to because ryan cohen doesn't. >> he doesn't? >> his vision is to fire everybody and bring in people from various web sites >> you mentioned nvidia. there was a bit of piece of news that wasn't good for them. some issues. the secretary of state believes and this is in the u.k. by the way, may be the case that the interest of national security being a public interest

consideration, a relevant merger situation, they're taking a close look at it it's not officially blocked so to speak >> no. >> but that line, it is what we would say, a significant impediment to the ability of nvidia to potentially complete this transaction right now. >> but you know what, carl, that's amazing about nvidia, if you go over, and i don't know whether this is covered, i have it, if you go over the most recent line of chips, carl, many of them are arm, they're arm derivatives, so maybe there's a trojan horse here. maybe, carl, that the reason why nvidia went up 140 points is that merger or not, they have access to arm technology and arm is considered to be superior to everybody. so i continue to like nvidia here even though the stock's off badly. this is the winner i don't know whether there's others that have been great. semiconductor capital equipment has been good, micron's been

good, so i continue to like this one. applied materials. amazing. had them on. and then amd versus intel. we're going to find out what pat gelsinger really has going with intel, carl and it's going to be fireworks because he likes to very subtly trash the competition. >> yeah, i was just going to say, nvidia still has the ability to throw a chill over some intel investors, and we're going to find out more about the quarter when they print jim on thursday night it will be a busy one. i think we have 80 this week. >> they refuse to break it up. when hewlett packard decided to change it, because they wanted to be able to take christmas vacation, i always that was great, it is a bunch, you lose sight, david, on thursday, on thursday, you know that we do, i would say, a sub-optimal job, on 80 companies, because you just can't do your work >> no. you have to pick and choose. you kind of try and cover

everything, which is impossible. >> coca-cola reported a really great quarter this morning. >> yes, well that one actually we will hear from. we can focus from that because there aren't too many other companies reporting and we will hear from the ceo. >> why don't we go to coca-cola after the break. >> that sounds good. >> first let's go back to carl and let's let him tell us that. >> we will talk about coke harley is pretty interesting this morning and price target moves on home depot, expedia, apple, nikola, starbucks, others. futures e ft ckn montarso tailor made or one size fits all? made to order or ready to go? with a hybrid, you don't have to choose. that's why insurers are going hybrid with ibm. with watson on a hybrid cloud they can use ai to help predict client needs and get the data they need to quickly design coverage for each one.

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crossing the tape a few moments ago, the yoon leading the campaign against amazon, alleging that amazon repeatedly engaged in illegal conduct, prevents a free and fair yoon election in one of the alabama warehouse, the retail holz and department star union, accusing them of manipulating voting around the process in the closely held campaign at the company's alabama warehouse. employees as you know overwhelmingly rejected unionization, fewer 30% votes tallied in favor of unionization and there will be complaints to

the nlrb and something that bezos addressed in his letter last week. >> i think any time, now i've been a member of two yoon, and any time you feel that you're not doing well, you do want the nlrb in, the nlrb historically has not in these particular cases done much unless it was a closer election. david, it was not a close election >> no. it wasn't close. >> no. >> listen, i also think it's worth reading bezos' letter last week very interesting his reflections on employees, and everything else. and sort of what they can do his last letter as ceo >> i thought it was sweet. >> sweet >> bittersweet >> that's not a word i would really associate with jeff bezos. >> i thought it was bittersweet. >> maybe it was bittersweet. >> yeah. >> don't worry >> bezos is sure he is going to live forever he's not worried about - >> a crowd guy. >> colonizing the planet

>> speaking of sweet, guy, coke, 55 cents beats 50. revenue ahead. 6% organic revenue growth. and case volume, jim, back to march, 2019 levels although they don't boost the guide, in part because they are remaining cautious, given what we know about covid cases around the world. >> right i mean they do fewer lockdowns but what's amazing is you have this thing called on prem and off prem, when you are on prem, at a restaurant, in america, if it has, this is incredible, if it has a drive-through lane, the numbers are extraordinary. that's why i like chipotle, i like mcdonald's and the numbers here, why isn't this stock up more 6% organic growth. man, that's fantastic for coca-cola. and i know he doesn't want to extrapolate so maybe the lazy people just simply have to say, all right, i'm going to use his guidance forget his guidance. he's, this is on fire. this stock should be higher, carl good numbers

>> also, jim, some comments about inflation, a lot of plastic comments, oj, aluminum, they say manageable this year, but there will be a challenge in 2022. >> well, why do they let all of those aluminum, david, the aluminum can companies were all allowed to merge, what was that about. >> i do not know >> you don't know? >> no, i don't have an answer for you. >> you don't think it was right? you don't have an answer. >> i don't necessarily, i haven't done enough work on the situation in terms of consolidation amongst the aluminum makers. >> there it is, carl there it is. >> i will tell you that commodity prices as carl points out continue to go higher. >> i'm aware of it. >> the chinese are suddenly getting serious about air pollution. and they've cut back how much they make. carl, i've got to tell you, if you were buying aluminum or if you're buying lumber, good luck. >> all right yeah, lumber, all-time high last week, and then this morning, a

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time for "mad dash," one deal to talk about this morning, anybody who sits might be aware of it. herman miller is buying knoll. >> knoll has been independent for a long time. >> it has. >> a bastian leader. herman miller, the eron has been remarkable. >> i have an eron. >> i love it. >> but this is a complimentary deal, and so david, i have to ask, is there anybody in the government who may say this is too much concentration

in the office industry >> i don't know the relevant stats in terms of their market share but you would imagine perhaps that it's not inconceivable somebody will at least ask those questions. >> if they buy steelcase, won't they have a hammerlock on everything >> then they conceivably would have a great deal of the market. >> herman miller shares by the way they're getting hit though, jim. 11 bucks in cash and 0.32 of herman miller for each knoll share knoll is up as you might imagine. worth almost $44 a share the transaction in terms of applied purchase price, sorry, 25.06 but basing that number on what herman miller's average price was, jim but all of it's coming down. it's not worth that at all 11 bucks in cash and then 0.32 and then obviously your 0.32 is getting pressured. >> both too small for people to notice this. once they finish it, it will be one of the stocks that people will say, i need home furniture.

>> yes. >> that's what is driving this people need office furniture in their home it's a great deal. >> m&a, we all know spacs are obviously counted as a merger, when the spac announces their deal >> yes. >> and we've seen deals of similar size coming, some larger, we had a fairly large one last week. >> we had that webster sterling, too. >> and the nuance deal, but i will tell you, jim and it's interesting, you ask about anti-trust here, that seems to be holding back some of the larger transactions. it would certainly attract attention. because people are still trying to understand the regime that's in place and how they're going to react. >> fox might be interested in -- >> fox the network >> fox as is in the foxes in my hen house. >> i don't buy that. small. i don't think that that's actually necessarily - >> i just threw it out there >> there was a report out today. >> yes >> i'm not as sure about that.

>> certain things they might be able to do >> moving to australia. >> doing ntualocrn work. >> nocturnal work. >> we have the opening bell coming up. stay with us

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it's almost a week since health greaters called for a temporary pause on j&j vaks vaccine due to safety concerns yet yesterday on "meet the press," anthony fauchly weighed in on the future of the vaccine. >> my guess is we will continue to use it in some form i doubt very seriously if they just cancel. it i don't think so that will happen i do think there will be some sort of warning or restriction or risk assessment i don't think it's just going to go back and say okay, everything's fine go right back. i think it will likely say, okay, we're going to use, it but be careful under these certain circumstances. >> jim, the consensus seems to be that the overall impact on the trajectory of u.s. vaccination is not that significant. >> no, but one of the things i think is beginning to upset

people, i know, that the cdc, nih, fda, i mean david, i don't know, who's in charge here who's in charge? >> i don't know. >> right i don't think they do, either. so you get this situation where the fda approves it, and suddenly the cdc says take it off, and so you have rogue agencies so nobody knows who to really follow and i find that that is disconcerting. because there's fauci. is fauci in charge who's in charge here >> yeah. yeah >> who >> i don't know, and do they all speak with one voice >> no, they don't. >> and people take their crewes and companies are taking their cues, and rules and regulations in schools and people are trying to understand what the risk really is of various things. frustrating. >> we know that if you have a blood clot, you know, pheparin, for blood clots, i think you would approve, this but fauci is in there saying it will be approved in a couple of days >> it will be allowed back on

the market once doctors know how to respond to these very rare cases >> who is he to declare this >> who is he >> and the same problem with the regneron cocktail. cdc and nih, they don't even say it is necessarily worth getting. no one's, these companies, saying listen, we're now going to take somebody's advice but not all three. it doesn't work. >> yeah, your point is a good one, jim, some blurred lines at least in the communication aspect of public health. there's the opening bell a the the big board, air lease corp celebrating the 10th listing anniversary. we will talk to the ceo in an hour at the nasdaq, transportation and logistics company hub group celebrating its 50th anniversary. jim, we haven't really gotten to harley 168 crushes 88 cents revenue in line, they do raise their guide, looking for bike sales up 30 to 35 versus prior

20 to 25 b of a upgraded it last week saying that interest in harley's is on the rise. >> well, look, i think that they've had a demographic problem for years, and this fellow has come in, and basically just changed this thing into something that is more youthful and i think that that has been the missing piece of the puzzle. david, the new harley fire is younger, and the bikes are easier to understand i don't know if you have been to one, i've been to a harley store, that's about ten miles from my house, and i thought it was like i was riding a bitcoin-inspired nvidia-programmed, that is artificial intelligence. it was too hard, david i sat there and i said i don't know what to do. first gear, eighth gear, i don't know. >> i wouldn't advise to you get on one anyway. just saying. >> just trying it out. >> okay. >> but you weren't going to actually buy one >> it's too hard. >> that was the reason

it was going to be too hard? too many computers on that thing? >> i was ruining the demographic, carl. >> look, they're really fascinating, but this guy, he has been, he's working magic, carl and the previous guys were going after the wrong -- >> a lot of chips going into them these days? they probably do. >> a chip shortage. >> for motorcycles as well. >> no one has mentioned the chip shortage today. >> no. but the level of complexity in your new automobile these days is fairly high i think it takes three years to figure out what's going on. >> chips are a dollar, two dollars, so it's not worth it to the manufacturers to make those. there's very little return pat gelsinger will talk about that, this week, carl and intel's ceo, it will be very excited, he's outspoken is the way i would put it. >> jim, you have talked a great deal about the chip shortage and i think it is something we should spend time on yet again today bought i had a conversation with somebody who

runs a company and if i say what they did, it is a particular area but it is an unexpected product -- >> it would be a nightmare if you said it? >> no, but an unexpected product, a product that you wouldn't necessarily assume it has chips in it but it does and why? because it can be remote controlled by your phone one of those and that's so many things now, have an app that controls them chip shortage is coming into view for this company as well. >> you are being very nonpolitical i will throw political, carl, the chinese saw this coming, and all the notes i'm seeing now is did they triple order or double order? are american companies, our american companies seem to have thought that they would never come into play, that the chinese would be aggressive. carl, the chinese have the chips. they've got the chips. and they are not having a problem. >> meaning what? >> once they come out. >> i'm say - >> by the way you have a lot of companies that are making sure they have the inventory they

need and they have more than they need to fulfill the inventory that they are not sure that will be there because of the chip shortage and the ports with things sitting there for weeks and weeks and not being unloaded we could have serious shortages on products. >> does jay powell know about the freight costs? >> i don't know, does he >> maybe it is temporary, carl, temporary. maybe five years >> yeah, on the inflation front, guys, this white house blog that we mentioned, cecilia rights while average wage growth was unusually high during the pandemic, we expect that it will likely decline dramatically in the coming months. that's worth a read. i don't know if you saw this piece in the "washington post" over the weekend, jim, about the fed chair and the village of homeless that are near the federal reserve offices in washington, d.c., which he passes on his way to work, and according to the "post," thinks a lot about and it's sort of

illustrated a bit about what we hear from him in terms of why he believes the recovery is so uneven. >> look, i think he's very right. anybody who looks at the numbers knows that the previous regime, the trump regime, you had really across the board employment, david, rather remarkable, minority employment, and now, minority employment is rather remarkable, and it seems like a lot of people are being left behind. >> true. >> and i don't understand it. >> if the fed chair is reacting to homelessness, that is, i mean, you go anywhere these days, it's a national crisis >> it is. >> it's connected to a lot of different things not just economics, plain and simple although that's very important, but unfortunately mental health, drug use, so many different things that go into it but it's a crisis in both cities large and small across this country. >> but i think it's being overlooked because other than jay powell, it's easy to overlook. >> yeah. >> we stay at our homes. >> you can't overlook it where i live in new york city, you can't overlook it.

that's for sure. >> i think that jay powell is on to something, carl. >> whether you can solve it is the real thing. >> remember mayor bloomberg said you had to do psychological. you could do - >> a lot of it is mental health which is a huge issue as well. >> there's ways, there's medicines. >> right but it's making sure people get them. >> or take them. because they don't think they are -- >> it's a lot harder when they're on the street, too. >> that's an interesting conversation that is not for "squawk box" that we're in. >> i didn't expect we would go there. but it's interesting, carl, that is occupying, some of his thinking in terms of overall, and for the economy itself >> yes, and points to our ongoing conversation, guys, about to what degree financial assets and markets were reflective of the broader economy, it's a legitimate conversation, even though it's obviously not stock specific but jim, speaking of stock specific, disney on the cover over the weekend, bob talking

about streaming hitting profitability. the things they have come together parks, the avengers campus at disneyland, this new, don't call it a star wars hotel, at walt disneyworld. pretty bullish tone on the cover over the weekend. >> the numbers are good. the numbers get better every week and i think that people, it's interesting, about going back to the movie, i think that there are a lot of cinemas that have been closed, but amc, david, he saved it adam aron saved amc. and you know how he did it by selling stock to people who were single issue buyers >> wall street bets. >> yes >> and what do they have >> what does who have? >> wall street bets, they have a viable cinema, and they've got a store that any minute could start selling, i don't know, pets, bitcoin, i have to work on this gamestop, because they clearly don't have a plan. >> roaring kitty likes it.

>> changed my mind. >> buying more. >> warren buffett of the - >> we'll go back to the theater. i don't think it's going to change how much we necessarily spend on them because we have an absolute quality standard. but it may say okay, we're only going to put bigger films in theaters things are changing. forever. in terms of the way that things are, the exhibition window, but there is a desire on the part of - >> i could have watched disney plus last night. i happened to be working on a segment for tonight. >> is that bad to be caught watching disney plus. >> should people at that age group of my wife be watching disney plus? >> sure, there's a lot of good things, watching wanda-vision, a good show. >> wanda-vision. >> yes, enjoyed it a lot >> really? >> uh-huh. >> i work. at night. >> i'm aware that all you do is work but some of us prefer not working. >> well, you know, my grave stone will say he worked really hard. >> yeah, i know.

>> there you go. >> that's great. >> carl? >> i have no choice. >> it's a life well spent. working. >> and i feel that it's just a joy. >> good choices there. >> sorry, carl see what happens when we come back together. we should be separated again we'll get a lot more done here, you know >> jim, i did want to get you on peloton, the consumer products safety commission over the weekend advising customers not to buy on the treadmill and i don't know if you saw the tweet that the commission posted but here is a video of a toddler getting caught, it's very difficult to watch, use caution before clicking ton but this is something that peloton management had hoped to avoid. >> the video, not everyone should watch the video, first of all. but there's a moment when the young lad goes under the machine to get the ball, and is trapped, and it looks like, carl, the machine is very light, the ball

jacked up the machine. >> it goes right over him. >> i don't know. i happen to like peloton but this is something that says don't have anyone, a pet, a little child, anywhere near this thing. david did you see it >> i didn't and i don't think i want to. >> no, you don't you don't. anyone with little kids can't. just take their word for it. because you just can't believe that this little boy survived. it is so scary >> yeah. it's still not clear to me how it would have been any different with a different brand of tread mill, that's not clear to me yet. >> that's a good point i don't know it just seemed to be lifted so easily i mean i haven't been on the treadmill. i shouldn't say that made by a great company. peloton does a lot of things right. it's just i don't know how they got that video but carl, but the video is, well, will he get out, will he get out, it's very scary

>> right shares under some pressure obviously this morning, down 4%. the dow's dropped this morning it's modest but the biggest since march 23rd let's get to bob pisani. hey, bob. >> good morning. happy monday rare down day. but don't kid yourself, this is a very powerful rally. much stronger than expected economic data above expectations than we have earnings, we were expecting earnings to be better, but this is even better than the bulls were expecting on the earnings and the revisions are going up, and of course, the 10-year is behaving. all of this creating a very powerful rally kind of flattish today but the fact is, remember the rallies in january and february, if they were largely technology driven, this rally you've been seeing in the month of april, far, far broader, much broader participation, health care, utilities, moving on the upside, industrials moving to the upside so look what we've got here today.

we have new highs in the large cap sector, in the s&p, we have new highs in the mid cap, we have new highs in growth and value. the russell 2000 is lagging a little bit but nobody is complaining about that and the breadth has been simply, well, breath-taking here, laurie's, the oldest technical service in the united states noted on friday the vast that majority of intermediate term uptrends 95% of stocks are above the 50-day moving average. all sorts of incredible evidence of how broad the rally has been and how powerful it is the most important thing is the earnings revisions keep going up and they're surprising even people we all expected the earnings revisions to keep going up but look here, we're expecting almost 31% earnings growth from the first quarter compared to last year. just a couple of weeks ago, it was only 24% that is a huge move up and historically, by the way, these numbers tend to go down when you're in the earnings season, not go up. it's not only going up, it's going up more than people

thought it was going up. even in the second and third quarter, that's what people care about and what we're trying to figure out now and the numbers slowly going up, not a typo, 56% increase in earnings and just a few weeks ago, it was 54 and going up for the third quarter and the fourth quarter as well when you get those kinds of revisions upward, the market is, it's very hard to deny the power of the overall rally so what could go wrong is there risks out there the obvious risk is that just everyone has gone up rather dramatically and one analyst term, there's no covid discount anymore for everything all the stuff that was lagging is caught up and fewer sectors to rotate into and that's harder to argue with when everything is rotated into already here, and it's what i call peak economic data, we have peak earnings revision, likely, and we may have peak rates in terms of the low levels of rates. so peak everything becomes an actual issue

one thing you don't want to watch in the next few weeks is this curious phenomenon where the trading volumes have been much lower they were lower in march, compared to february and in april, they've been lower compared to march and you also want to watch the equity options trades and those are the people who are out there buying call options, for example that is a big mover of the market and down 11% so far in april compared to march and march is lower than february so evidence of what you might call a trading crescendo in january and february, largely around retail trade that is now abiding a bit. that makes a little bit of sense, carl, when you think about everyone going back to work and all of the issues involved, much more sports involvement, for example, so none of this is terribly surprising, but it does go to the point that that was a very big driver of the conversation, and a driver of stock prices in january and february, to the extent that that's not there as much anymore which is why we watch those trading volume numbers, that could also be an issue for the market but right now, there's just very

little to really complain about on an internal level carl, back to you. >> a great point, bob. and something we've been watching closely, the stay at home dynamic, bob pisani, thanks. >> a light weak for eco "dateline" but i have a feeling rick santelli will stay busy hey, rick. >> absolutely. it is a light week for eco data. but i'll tell you what, we don't need economic data to have a wild market. as a matter of fact, it seems as though technicals have been ruling the roost over the last several sessions in treasuries look at the two-day of 10s, back above 160-ish and if you look at the way it sliced through, it really is very reminiscent over a look at a two-week chart the way we sliced under. this is definitely a big area, so whether you're going under, and it stopped at 152, or it starts to go the other way, look for a little momentum in both directions, but obviously, which side of 160, 161 we close at today will be quite important.

bund deals look at the two-day of bund deals. got up to minus 21-ish the absolutely highest intra-day level is around minus 20 on a post-covid basis, and if you look at the difference between 10s and bunds on a year to date chart, it's moved 23 basis points closer together basically 2.05, just early in april, to where it stands now at 1.82, this is hugely important and it's also important to europe in general, that they're starting to get the vaccines better coordinated, and we're starting to see rates move up a bit, and as evidence to that, jpmorgan today is going to be issuing sterling denominated traunches of of 12 and five-year maturities and this is after banks were kind of hog wild last week on thursday, we saw jpmorgan with a $13 billion bank debt issuance which happens to be a record, which was usurped as the next day, by bank of america at

15, $15 billion, so these banks had a wonderful quarter and starting to have a nourishance and maybe the issuance starting to hit in europe, maybe an early kind of tell that banks think maybe the best lowest yields are in the rearview mirror carl, jim, david, back to you. >> fascinating thanks, rick rick santelli. dow down 100 is the biggest drop as we said in about three weeks or so. we're going to watch that. energies leading this morning. in fact, one of the few sectors that are green after some reports over the weekend that the pandemic glut of oil is now almost completely worked off we're back in a moment what happens when we welcome change? we can make emergency medicine possible at 40,000 feet.

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shares of tesla on the move. police officials in texas probing the deadly crash of a tesla vehicle that they say they are nearly certain no one was behind the wheel at the time still unclear whether the car's autopilot system was engaged

tesla is the worst s&per at the moment. >> tesla is a really important stock for this market because it has led anything that's ev, and there's a huge number of spacs that are ev. a lot of people cue off these, the etfs cue off it, and david, when you have 6 million shares of volume, this is very important. when you have this, it discourages a lot of spacs who are in the queue to come public. >> when you have, really, you think this action discourages that >> yes >> i think there's a lot of things that are discouraging spacs at this point. the prospect of true regulation coming from the s.e.c., garrett gensler, focused on this, i think we all know that not just on the projections of the companies that are acquired but of the length of the pipe, of how quick these can sell out. looking at a lot of different things that i think has put a pause on the spacs. >> he is from this world

one of the things that has been incredible, you mentioned, are the projections. companies out in 2027, david >> yeah. >> i mean, they will take over the world. >> it's going to be awesome. >> the numbers that they are all putting up in 2027. >> we're going to have autonomous flying cars. >> why not >> why not >> flying pigs. >> sure. >> okay. thank you. carl >> as we go to break, guys, take a look at bitcoin, we talked about it earlier in the hour after the weekend selloff, trying to get some back, currtlup auteny bo 1 1/3%. back in a minute

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r time for a monday edition of stock trading with jim. >> there's a lot of talk about this is your world, the break up will be the break up of alphabet, and i think that you should look at this, but the truth is, carl, there's no plans to break up alphabet, but the periodically, the analysts cannot resist, why, because they look at the past, they look at google cloud, they look at you tube they look at search. they look at waymo, and carl, they say, what's the deal? there's market cap of say $2 trillion here i happen to think this company is doing quite well. why do we have to break it up.

beware that that chatter is endless, carl, and i just think it's foolish you buy it for earnings and i think the earnings are going to be good. >> i did notice oppenheimer went to 23.50 this morning, but i didn't see the note. >> it was doug making some of the parts, but canaccord is talking about a big raise. everyone seems to think this is the safe one of faang. they all feel that this is the one that you can own because it hasn't moved in years. now it's up 31%. carl, i think we should be looking at other faang numbers because this thing is going up so much, but just beware, everyone's excited about netflix later this week, and, what, a couple hundred million subscribers, this is an exciting week and if you don't like stocks, you should watch something else. >> plus you got the boss on tonight. >> i have to have matthew boss

because the retail conversation was such a success we're going to be talking about american eagle outfitters, gap is a transformation. l. brands is a transformation. these are incredible, and you know what they have in common, carl they're in the mall, which is back and bigger than ever. well, for a couple of stores carl, when you have david next to you, he makes those little asides, it's better than it's ever been. >> tomorrow we're back >> i just want a camera with a david reaction shot. that's what i'm looking for. it's great to see you guys together i'm going to join you at some point. >> good. >> we'll come back in a moment seamlessly intersect.o jey in a minute. it's understated, yet over-delivers.

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and mental health. exciting. i'm gonna take a spin around the room. great idea. ♪ ♪ petco. the health and wellness company. good monday morning, welcome back to "squawk on the street," i'm carl quintanilla with david faber and morgan brennan down 100 plus as q1 earnings pick up speed. we continue to watch what happened, morgan with bitcoin over the weekend. >> we're teed up for a busy

weekend. we're going to start with what we're watching 30 minutes into the trading session and into the week, the trading week here are the three big movers we are watching bitcoin as you just mentioned recovering a bit following a steep drop over the weekenda falling below $52,000. the treasury department is planning a crack down on cryptocurrencies gamestop meantime announcing that its ceo is stepping down effective july 31st or earlier if a successor is found sooner, separately, according to bloomberg, keith gill, aka roaring kitty, exercises options to buy 5 d additional shares of game stop at $12 per share gill now holds 2,000 shares of the company, and dow component coca-cola reporting results as well, moving on a quarterly beat and improved margins despite pressure in sales abroad due to the pandemic ceo james quincey will join us

on the show in few moments, daifld. >> let's get to our senior markets commentator. the dow, mike, suffering its biggest drop since late march. >> and doesn't that say something that the biggest drop since late march is less than 1/2 a percent on an interday basis it's a ferociously strong market the rally has refreshed with all of this rotation it brings up the question, essentially, it's gotten almost too good to last at this level specifically, the breadth of the market is getting a lot of attention. the fact that more than 95% of all s&p 500 stocks last week clicked above their 200 day moving average that's only happened a couple of times in the last 20 years one of them, 2009 into 2010, the other one, 2004, so good news is those were early in multiyear upturns in the market. the somewhat sobering news is it was right near where the market went sideways or down for a bit, had a corrective period before it resumed that advance.

it's a little bit of a give and a take right now it's also working with pretty full epidequity exposures, among professional and retail investors. if any indication of positioning says people are very very well exposed to something the one thing i would say and it might mitigate any need for any kind of give back phase here is that the fundamentals are so strong earnings estimates are going up so quickly at the same time that the fed is doing nothing except trying to convince everybody that all the good news will not create any kind of offset from tighter monetary policies. wer we haven't really had that particular equation at play for quite some time. >> you mentioned earnings scores and it's an important week, getting many of the s&p reporting this week, and as always, guidance to the extent we get any is going to figure prominently in the eaction, i would think. >> it should i do think at this point you're now at a place, a little bit back to normal, balance sheets

are in place, and companies should have a better view as to what things are looking like, specifically on the cost side. that's where the guidance matters a lot, talking about the friction and bottlenecks and supply issues across the economy. yes, i think in general, analysts are going to have to play catch up in terms of bringing formal 2021 earnings forecasts, the question is has the market itself already more or less taken account of that in this run that we have had, now up more than 90% in less than 13 months >> things are going to guest interesting as david pointed out. a lot of intelligence to be gleaned. market value plunging over the weekend by about $310 billion in less than 24 hours, as it hits its lowest level since march sheila warren head of block chain joins us this morning to talk about it. great to see you thank you for the time. >> my pleasure, thanks for having me.

>> there were all these sort of boogiemen being blamed over the weekend for the price drop, blackouts and coal explosions and s.e.c. scrutiny potentially. can we pin it on one thing yet >> we can. we can pin it on the fact this remains a volatile asset it's going to be for the short to medium term for sure. people are skittish. there are going to be all kinds of things the finger pointed at. we'll never know what the answer is. >> do you think this undoes some of the narrative that had begun to get built that was we have seen the last of the 80% historic drops in crypto names that we're going to start evening out volatility does that make that a little less valid >> i don't think so. i think you have to look at the trend line yes, we're seeing dips i see them more as dips than massive crashes. it feels that way to some depending on when you got into

the market you have to look at the longer term trend line, and things are positive from where i sit. >> speaking about the longer term, the fact that you have the central bank, digital currency efforts afoot. you have got the sand dollar, sot-called stable coins in the works, including libra, which is known as dm. the u.k. also apparently looking into the possibilities can these coexist alongside bitcoin and the other cryptocurrencies which the ethos is anti-sovereign digital currency >> 100%, these are very different things, designed for different purposes a lot of digital currencies will have domestic use cases primarily, used for stimulus, used for tracking certain kinds of transactions by a central bank or a political authority. and bitcoin and crypto are just very different things. they have different uses they have different potential, so i see a universe where you absolutely have coexistence of stable coin, and pure, if you want to call it that, crypto.

>> how are you thinking about china's digital currency offering i ask that because i'm already hearing from folks within this industry that there are concerns around the capability it could have or other types of currency offerings, i guess, for things like spying. >> yeah, you know, i think there are privacy concerns being raised a lot around china's desep. the thing to realize, china has said strongly, they're looking at this, starting off with domestic, you know, use. and this is a country where notions of privacy are very different. what is surveilled is very different. so it's kind of doubling down, if you will, on that cultural understanding of what the government knows about you in that country i think where people are getting all freaked out about it is thinking about what happens when it crosses borders and are we going to see the extension of that, right, but thus far, we aren't seeing a lot of activities in that particular

space. is it possible of course it is. is it inevitable, maybe so i think by then, we're going to have a much more full landscape of crypto, and other cbdcs and there will be a competition around seeing which of these values are most attractive globally >> to what degree do you think coinbase, either their market cap or the way they're guiding of their own business is going to be useful in terms of understanding the underlying health of crypto in general? >> well, i think coinbase has said themselves that they see themselves as high lily correla with bitcoin, and crypto more generally. i think it indicates the beginning of this industry it's making visible the massive industry that's being built around this asset class. coin base is the first, i think, of a number of different projects we're going to see that come into big money that either direct list or ipo, whatever it might be but there's just a huge universe

of application possibilities that are going to be built on the foundations of crypto, and that is, it's just starting to hit, i think, a layperson understanding. but it's all there it's exciting to ne me that it paves the way for that and pays the way forward for a lot of opportunities. >> on our air last week, said it's interesting when the tam is everything, and we're going to see how far it gets. sheila, thank, great to see you. >> great to be here, thank you so much. as we head to a quick break, here is a look at our road map for the rest of the hour we're starting with an exclusive interview with coca-cola carryman and ceo james quincey, the company saying demand in march hit pre-pandemic levels. plus, we'll discuss the outlook for air travel wi. and nasa, the first controlled flight on another

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welcome back, let's get to sara eisen along with coca-cola chairman and ceo, james quincy. >> good morning, thank you so much for doing this. >> you're welcome. >> the big headline this morning is that march volumes returned

to march 2019 volumes, which is a key milestone. my question is how did you manage to do that when so much of your business is away from home and so many parts of the world right now are still in the throes of covid-19 >> clearly we're not out of the woods yet, but we focus very much, i mean, a year ago we sat down and we said we want to emerge stronger, we want to get back to our pre-pandemic levels, well ahead of the economic recovery around the world, and so we were very focused over the last 12 months focusing on really improving our marketing we cut the portfolio of brands in half. we got really focused on our innovation pipeline. we worked with our bottlers to really support the customers in new and different ways, where they're open and the sum of all of that, along with a new organization we've stood up as allowed us, as you say, to come back to the pre-pandemic levels in march, despite the continues weaknesses around the world, improving but

still below 2019 levels, and i think it's a great testament to the enduring strength of the brands of the coke company, and of the bottling partners around the world to adapt and be fast to pivot the business to continue to grow >> and a positive sign when it comes to the reopening of economies, especially in china happening in the u.s., why not raise guidance, are you being conservative, if you continue to see quarters like this, why not improving the outlook of it? >> well, if we continue to hit quarters like this, we will definitely have a very strong year, and be at least at the top end of our guidance. the note we're striking is to say, look, there's a balance here, we have had a very strong first quarter, building on the work we have done over the last 12 months. we've got momentum march, we're back above the 2019 levels, yet one of the enduring features of what's been happening for the last 12 months is kind of a noneconomic factor in a sense, which is the degree of lock down

and as we look forward into the year, while we've got momentum, you can see that, yes, china, which kind of is ahead of 2019, is reopening the u.s. is also reopening the u.k., and they're starting to power ahead we have all the parts where the cases are still increasing in fact, this week marks a global -- a new global high in terms of total global cases and we're seeing other countries go back into lock down, so this factor of the degree of lock down in the rest of the year is a very telling factor as we adapt the business, and it will either help us or hinder us as we go into the downhill. one can't draw a straight line through the momentum we have built without taking this into account. we're being balanced about the downhill, but clearly as we see cases come down, and reopenings accelerate, we'll be fueling growth with marketing and innovation, and hopefully it will turn out for the best, but we need to be flexible in the face of this uncertainty.

>> specifically, what are you seeing, james, from the u.s. consumer just in recent weeks, flush with cash on the back of new stimulus payments, and increasingly getting vaccinated. >> yeah, i think what we're seeing is the great reopening. and we're seeing the maximum that humans are social creatures, they want experiences to really come true, and we can see as we track our business across the different channels in the u.s., as we went through january and february, and then suddenly in march as the vaccine rates were coming up and the reopenings were starting to happening, we saw a big jump up in sales, in restaurants, and going out in the evenings. and because the offices are not fully open, the channels that are more commuting or offices or educational, they haven't improved as much, but we expect to see this phased reopening what tends to seem to happen, as

the reopenings happen, people go out, they go out in the evenings, they go out and do nonessential shopping and there's a second phase, they go back into the every day work environment or educational environment with more commuting and then the big gatherings phase comes last, whether it's sporting or amusement channels we're seeing that starting to happen right now in the u.s. i think there could be a fast sequence of those phases, given the levels of vaccination, but it's certainly underway. >> speaking of at work, i see you're at hq in atlanta i think there at coca-cola, have you brought all of your workers back >> no, we haven't brought everyone back yet. we're looking to come back in in the summers as the summer closes and the school holidays end, but even then, you know, we're expecting high levels of vaccination, but we'll still be looking at some measures of

social distancing and so we will be bringing people up, but we think we'll see a bit more of a hybrid balance of working. we need to work through some of those details, but as yet, i'm one of the few people in the atlanta complex at the moment. it feels good to be back in the office, but we won't get everyone back in until at least the back half of the year. >> what about prices, james, there's this inflation issue lurking, especially in the u.s but really globally, and we're trying to figure out how much staying power it has what do you intend to do as we've seen higher commodity prices and higher input costs for food and beverage companies across the board. >> yeah, there clearly is some pressure in the supply chain and on the commodities, and as you said in one of the earlier questions, there's a lot of money in consumers hands from the stimulus that's been put out there. they're going to spend some of it when the reopenings happen. we do expect a strong burst of demand as the economies open up again, and there is some cost

pressure our approach over time has been to, of course, to pass through we're well hedged in '21 there's pressure build up for '22. there will have to be price increases. we intend to manage those intelligently. thinking through the way we use package sizes to really optimize the price points for consumers, but there is some price increase coming through the supply chain system >> got it. and health, that was my other question, you know, covid-19 has shined such a spotlight on our health, and such an awareness of it also, we found that obesity was one of the highest risk factors for the severity of this disease. do you see any change in terms of consumers' taste for certain products do you see an accelerated migration away from soda or other sugary beverages as a result >> i think we see actually two big trends, and in a way, they

were pre-dating the pandemic, and both have got some extra traction in the last 12 months on the one hand, there are consumers shifting towards lower calorie beverages, and we're certainly behind that trend. coke zero, sugar, not just growing in 2021 in the first quarter but actually grew in 2020, and so we see continued momentum and a lot of investment going behind low calorie options. we're obviously participating strongly you see a big effort and a continued shift by consumer to enjoy sparkling drinks, but with lower calorie counts but you also see the kind of recharge, whether it's the energy category, the coffee inherent in it, the protein drinks there's still strong growth in those categories of people who have got to get out and do stuff. particularly those that have got manual jobs perhaps or are

looking for a recharge in the afternoon, so you do see these two trends, and not just continuing through the pandemic, but maybe getting a little more traction >> you've been caught right in the cross hairs of the georgia voting laws. we have talked about it before, james, have you seen any impact on the business? >> clearly there are people who think i should have said more. there are people who think i should have said less. there are people who think i should have said things earlier or later there are strong feelings, clearly in the numbers we have published that it's not a material impact, and we're not trying to get any of our consumers and customers. we have held true to something that we started in the 50s and 60s. which is to believe that, you know, if we wanted the coca-cola to have global aspirations to be a large enterprise, we needed the state of georgia not to just be a great place to do business

which the republicans and democrats have worked for many decades to make georgia and atlanta a great place to do business it currently tops best place to do business in the u.s but we want it to be a place that everyone could enjoy in those benefits, and that means that everyone needs to have the same underlying rights and access, and so we followed those twin tracks and for us, it's about can georgia be the best place to do business and best in class for rights, particularly voting, and so we have seen that through and and we'll continue to engage and work on both sides of the iowaisle in georgia to me georgia a great place to be. >> thanks very much for joining us on earnings and much more ceo and chairman of coca-cola, always appreciate it >> thank you so much, sara. as we go to break, watch amazon, resident tail, wholesale and department store union, filing objections to the nlrb, accusing the company of

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time for our etf spotlight we'll take a look at the amplify online ticker under pressure this morning, up double digits so far this year. the name dragging lower is largely peloton, the consumer products safety commission issuing a warning over the weekend telling parents with small children to stop using the tread plus treadmill immediately. the warning comes after 39 reported incidents where small children were injured, including one that resulted in a death peloton calls the advisory quote inaccurate and misleading, but shares under some pressure here, back to 107 1/2. that's about a 3-week low on pton >> meantime, authorities in texas are looking into a deadly tesla crash over the weekend with police officials say they are nearly certain that no one was behind the wheel our phil lebeau has the latest phil. >> more questions than answers regarding this crash of a 2019 tesla model s. as you mentioned police at the

scene shortly after the accident told local reporters that they do not believe that there was anybody who was in the driver's seat at the time of this crash two people were killed in this crash. one was at the scene after the vehicle was caught on fire was in the passenger's seat. the other was in the backseat. the question is was he thrown to the backseat, was he there when the accident happened. the other big question is was auto pilot engaged in the tesla model s? they do not know at this point that's a huge question that's out there. all of this comes as elon musk, ceo of tesla out this weekend with a tweet regarding the company's annual safety report in his tweet, he says tesla with auto pilot engaged now approaching ten times lower chance of accident than an average vehicle. keep in mind, any type of driver assist system means you're going to have lower accident rates than any typical vehicle that is out on the road right now where humans are involved. that's been proven time and again by researchers robert sumalt in charge of the

national transportation safety board, has been vocal that tesla's beta technology or beta version of the auto pilot technology should not be tested on public roads with public drivers. it should be with test drivers, who should be testing it that said, it has not stopped tesla from rolling out new versions of auto pilot, which raises the question, well, shouldn't the federal government look into this the national highway safety administration is in charge of regulating all auto makers and technology it has opened 27 investigations into tesla vehicles, tesla technology now, to this point, we have not seen nhtsa come back to tesla and say we have a particular issue with auto pilot, we want you to make these changes in it. could that happen in the future? it's possible. depends on what happens with their investigations, but keep this in mind, guys, tesla has

always said and continues to say, when you were driving a vehicle, and auto pilot is engaged, you have to stay engaged as the driver. there's no such thing as a completely self-driving vehicle. doesn't exist. the technology doesn't exist despite elon musk saying we're going to get there someday, and they're making great advancements >> phil, thank you phil lebeau. after the break, don't miss air lease ceo john pleger. eat music) ♪ ♪ ♪ ♪ ♪ ♪

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welcome back, i'm rahel solomon, and here is your cnbc covid update at this hour. officials from the biden administration are making the rounds on tv and social media this morning they're spreading the word that as of today, everyone 16 or older is eligible to get a covid vaccine in every state so far more than half of the

country's adults have received at least one dose, and nearly a third are fully vaccinated nbc news has information on where you can get a shot near you at planyourvaccine.com the fda has asked emergent biosolutions to stop producing new materials for covid vaccines until an inspection of its baltimore plant is completed last month, millions of j&j doses had to be destroyed due to a mistake at the facility. new delhi is starting a one-week lock down. health officials say they are trying to protect the already overwhelmed health care system so that people aren't quote dying in the streets the country reports a record 273,000 new infections today bringing its pandemic total to more than 15 million and in brazil, where cases are of course also high, police there breaking down doors, and making arrests in a crack down on parties that violate lock down rules david, they have actually been doing this for quite some time now. they clearly have their work cut out for them as parties continue i'll send it back to you. >> and brazil is still in a very

difficult position thank you. air lease corporation celebrating its tenth listing anniversary. joining us on the outlook for air travel and the airline industry is john plueger, the ceo of air lease always good to have you. let's start off, you obviously have a lot of carriers that are not based in the u.s european to u.s. travel, for example, so many borders closed, european to european country, what are your expectations there given it doesn't appear it's going to be anywhere near a normal summer vacation travel season >> yeah, you're exactly right. probably not for this upcoming summer season, although we do forecast a potential growth during the summer months of travel but nevertheless, i do think we're making a lot of good headway in the notion of vaccine visas and facility and traveling that way i think the industry is making some progress there. certainly in europe and other

parts of the world, tit's not quite as rosy. in the u.s. domestic scene, it's very very strong delta, we thought we were at the bottom american is increasing flights and the size of aircraft china is up to pretty much full capacity, russia is the same we have parts of the world that are still suffering. >> i would assume trying to sort of give guidance in this environment continues to be challenging. i looked at your last earnings where, you know, your collection rate, for example, for 3 and 12 months for last year is 88%. you expect that that's going to remain under pressure. is it going to get better in your opinion, and is it a decent reflection of where things stand right now? >> we'll wait to see how the year unfolds i think it's going to be under pressure for a little while. i mean, a lot of the carriers are still working through their financial constraints. they are back for second and third rounds of financing support from the government. i think we're in for still a bit of a time for the recover for the airline industry, and their ability to obtain capital, but

that's where the leasing companies come in. we have been able to provide a lot of capital and new aircraft from our order book to help relieve them of their capital obligations and of their cash burn, and so we're going to continue doing that, and we believe, you know, 2020 was the year where leasing hit 50% of the global market. 50% of all the aircraft that are flying or leased and that's going to continue. >> john, then, it's morgan just to dig into that a little bit more given how much debt and what the financials look like for airlines across the world right now is your expectation that you're going to continue to see the share of leased air crafts grow globally. >> yes absolutely most people feel it's going to climb to 52, 53% by the end of this year. clearly leasing now has become a bastian of capital for the airline industry, and we're happy to support those airlines with our capital, with our order book, and it's also a huge opportunity for the airlines to advance their environmental sustainability goals by

downsizing, right sizing their fleets, getting rid of the oldest less fuel efficient aircraft and getting the youngest, most environmentally friendly aircraft. >> we're seeing air cap and combine that business. i want to get your reaction not only to that deal but how that positions your company now within the broader industry? >> yeah, well, congratulations to them. i think it's brought a lot of good attention to our space. we wish them well. we have been competing with both of those companies now very successfully for eleven years. we don't foresee that changing we're very happy with where we are, our own size and scale, customer contacts. we still enjoy the lowest cost of debt financing for publicly traded aircraft, we expect that to continue. we wish them well, and you know, if anything, again, it shows, i think, a lot of attention on our space within the global airline community. >> john, this morning, the world health organization committee recommends that countries not require proof of vaccination as

a condition of international travel, and i wonder if that sticks around the globe if ther there there's up side risk to demand for wide body. >> it's hard to say. i think there's this pent up demand for international travel. wide bodies will continue to have their role. i think the smaller sized wide bodies today are very much preferred over the biggest aircrafts, simply because of passenger loads, but let's not forget we are going from hub to hub in the major cities of the world. it's more of a question of time. as we see these restrictions relax, and as we get other alternatives, for example, there's now an air bridge between new zealand and australia, and i think we're going to see that in other parts of the world, so slowly but surely this travel will come back and wide bodies will have their role. >> john, we begin to see the rebound in sales of or orders, i should say, of the 737 max we have reports that there's more electrical problems what's your outlook?

>> look, it's too bad that this additional issue has come up it affects about 90 aircraft, 90 of the maxes, but again, the 8 max is the 737 generally is very widely distributed the 8 max is a great airplane. it has a great future to it. so, you know, some of these teething pains that we're seeing, you know, by the way, this last example is actually kind of what you want to see in the safety system. this has come up, so boeing and the airlines have taken an ultimately uber safe approach in grounding the aircraft until they can get some of these electrical problems fixed. doesn't look like it's going to be a long time to repair them. but, you know, a good way to look at this is this is how the system is supposed to work >> john, always appreciate you taking time, thank you >> you bet thank you. >> you're welcome. check out shares of harley-davidson, retail sales surged 30% this is the first increase in six years, full year guidance was raised as well as the

motorcycle maker focuses on more expensive touring bikes. separately, harley said it will appeal an eu ruling that could subject it to a massive tariff increase for european sales. that is a key market for that company. shares nonetheless are up 10 1/2%, carl. >> that's a 2 1/2 year high on a hog this morning after the break, a choser look at spacex winning that near $3 billion nasa contract on friday we're back in a minute

one of wall street's biggest bulls, updated his economic outlook. the new forecast comes with a catch. that and more on cnbc.com. more "squawk on the street" straight ahead

obsession has many names. this is ours. the lexus is. all in on the sports sedan. lease the 2021 is 300 for $369 a month for 36 months. experience amazing at your lexus dealer. welcome back, nasa successfully conducting the first ever flight of an aircraft on another planet, as the helicopter ingenuity threw a 30 second autonomous flight on mars this morning in what the agency calls a wright brother's moment

in space the helicopter, which arrived on the red planet with the perseverance rover in february, even carrying a tiny piece of fabric from the wing of the wright brothers flier aircraft that made the first powered flights on earth 117 years ago today's flight a milestone, ingenuity was made by arrow environment with nasa, coming after the government also awarded elon musk's spacex, the lunar landing contract on friday night. it's been a bweekend for space. a $2.9 billion contract to develop star ship, nasa was producing two teams to proceed with the development of face craft to ferry astronauts to and from the moon's surface. the award, an upset for jeff bezos's origin, which included a team with lockheed martin, and draper, recalled that bezos unveiled the blue moon lander in

2019, their prototype was based after this, and a blow with, nasa choosing just spacex due in large part to budget constraints with spacex submitting the lowest bid musk got more funding for the reusable starship system already under development in texas the human landing system is part of nasa's artemis system to return astronauts to the moon in 2024 all of this ahead of the nasa crew 2 mission scheduled for this thursday. the third to bring astronauts to the international space station which again, speaks to the relationship nasa and spacex have now forged as that company is already entrusted with carrying humans into space. >> and clearly in a position to deliver most efficiency, i guess, when it comes to cost. >> yes. >> perhaps given because they have done so much more than anybody else. >> cost and the fact that they have taken a lot of the risk on. they were already well into

development with that starship system they have done a number of high altitude flights, though i should note all of those flights have ended in explosions or fiery failures, if you will, at various stages of landing but nonetheless, the fact that they have that, the fact that they are already so successful with the commercial crew program for which we see the next mission later this week, really speaking to why spacex got this contract, but i don't think that means if nasa can get more funding and the skinny budget that the biden administration put out recently proposes more funding for nasa and artemis specifically that there could potentially be another competitor that comes into this landscape. right now, a huge win for spacex you know it's a big win when all the wall street analysts are starting to release notes on it. >> i know. do we have an estimated value on that company in terms of what their last round was >> spacex? it's enormous, isn't it? >> it's huge it's huge. >> we'll just go with huge, carl, for now. we'll come back with a number.

>> huge is good. huge is good that's specific enough. >> it's, i think, the second most valuable private company right now in the world. >> in the next hour, by the way, don't miss the ceo of sonos, patrick spence is going to join us on tech check, shares up almost 400% in a year. we're back in a moment liable. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure. ♪ ♪ ♪ from banking to manufacturing, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. ♪ ♪ ♪ at calvert we know responsible investing is hard. if you're concerned about the environment and climate change, how do you find companies that are driving the right outcomes? if you care about economic equality and social justice,

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welcome back to "squawk on the street," i'm dominic chu, stocks are lower to start the day at the l.o.d.s right now, the lows of the day, off by 2/3 of 1% for the s&p 500. consumer discretionary is the worst performing sector and that's thanks in large part to tesla which you guys were discussing earlier on. outside of that move, we are seeing a notable decline in some smaller casino and sports betting players, like penn national gaming, caesar's entertainment as well. and a few apparel names like tapestry, under armour and nike, keep an eye on those many of these names have been rallying thanks to strong economic data signaling that rebound in sentiment and demand. those stimulus checks playing in the retail trade as well, david. i'll send things back over to you. thank you, dom, april is financial literacy month, and we

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we are in negative territory across the board with the s&p down about a half percent. the dow lagging as well. nasdaq is taking the brunt of it this morning laggards in the dow. boeing selling off caterpillar as well. goldman a good week last week after response to its earnings selling off a bit there. nasdaq, i don't know about th. talked tesla down over 5%

peloton hit at well and moderna another high flyer of success of its vaccine. morgan >> seeing across the board today. interesting in general month-to-date. realize a little more than half the way through the month of april, nasdaq pulled ahead the best performer month-to-date as we have seen at least it up to today big tech rebound, and rally as well i think also speaking to maybe today notwithstanding how broad-based the surge we've seen, two record highness recent days and weeks, has actually it's been. next guest opening 32 more restaurants going to more than 215 restaurants by end of 2021 and struggling with hiring and does not see an end in sight joining us now, scott, thanks for being with us. >> thanks, morgan. thanks for having me on. >> the country is reopening. sounds like you're expanding in terms of hiring what are you

seeing right now >> well, it's been a challenging last 12 months we had covid then things started to go back to normal, or at least somewhat normal storms hit texas and everything else we're excited to be back to business the problem, we can't find employees. we probably have right now in our brand with 184 restaurants, i bet we have 2000 to maybe 2,500 open positions. >> so what would you say the biggest hurdle is? we tear of the millions of americans out of work. is it unemployment benefits and the debate brewing around that concerns around covid? is it competitors right now? what's keeping you from being able to fill those open positions? >> well, i think it's a combination of everything you just said, morgan. go back a few years, i think it started mainly hitting our business back with, you know, the -- i mean, taking off of

uber and lyft for example. people that would have worked in the restaurant business, they're now possibly going into the different business line where it's delivering for uber or driving for uber or lifetyft or delivering food. increase of amazon and delivery and other platforms, we're losing people anyway couple that with unemployment benefits extended through september and people can stay home, make more money than if they went out and worked is creating a dynamic and we can't find people. i don't think it's competitive restaurant business in general, everybody i've talked to are all in the same boat. >> average wage for those jobs you're looking to fill >> interesting with minimum wage at $7.25, no one starts there anymore most are -- depends on the state you're in. typically we're, average rates, probably around $10.50 starting out there

clearly in certain markets where it's more competitive we're all closer to maybe $11, $12 or $13. depends on the market you're in. you are somewhat going to pay based on the market wage that's out there, but in some cases what we found is it really doesn't matter what we offer we can't get people to even interview. >> really? even when moving things up obviously, that's a calculation you have to make in terms of how high you're going to go, i guess, scott, and whether it will impact the price you're offering customers as well but even right now you're saying, doesn't matter you still are not finding people, even if raising wages? >> in many cases, that's the case, david. think about it 18 million people collecting unemployment benefits and the number i saw last was about 8 million open jobs. so people are just opting to stay home and not be in the workforce and so i think september when unemployment benefits go away, you'll see people starting back, but we need them now because the

economy, our business picked up dramatically we're over 2020 obvious a good bit and turning in 2019. the business is there. we just need people to staff. >> yeah. people want to get out of their houses, if they feel safe and comfortable to do so, scott. take that, couple it with what i assume is probably rising food costs. what does that mean for prices >> food prices stayed okay to date, but i'll tell you. i'm nervous about that mainly back to the trickle-down of staffing. some of our chicken suppliers are having trouble staffing their business that puts pressure on chicken across the board we're not just seeing it in food we're seeing it in other products that we have. it's really that full trickle-down and can't staff manufacturing suppliers with just trying to get caught up with what happened over the last 12 months. now with business ramping up, can't staff and we've been very fortunate, though, on our food

costs. it's the labor costs that's going up. >> what breaks the logjam? >> i wish i knew september, i believe we'll see a little bit of a break. i do think we'll have some, a little bit better application when that happens in september, unemployment benefits go away, but some of the systemic problems, amazon and uber and lyft, they're not going away certainly not getting people back, those opting to take those jobs but unemployment benefits will create some of the logjam that's here. >> and david, reunited it feels so good. >> here we are more than six feet, though. >> we are. socially distanced. >> almost like, actually fist bump that's going for us. >> communicate. by the way, viewers wondering, $74 billion latest valuation for spacex.

carl not with us getting ready for "techcheck." >> our new show. >> looking forward to him as well joining us. hopefully won't be too far. >> looking forward to that, too. well, thank you. for joining us today on "squawk on the street. we are going to toss over to "techcheck." ♪ good monday morning. welcome to "techcheck. i'm deirdre bosa with carl quintanilla and jon fortt. video, facebook positive apple, a land grab in the space more on that with keira swisher, and an important few weeks for apple. event tomorrow,