investment in categories like grocery, pharmacy and advertising markets. >> i just like that you described what amazon was, what did you call it? that's nice that you do that i wasn't familiar with it. >> just in case. >> thank you, dom. thank you, becky thank you, andrew. make sure you join us tomorrow "squawk on the street" is next good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are soggy again, after the worst day for stocks in about a month. investors reacting to netflix, verizon, the apple product announcement we will see if we can avoid three days down for all major indices. we haven't done that since early march. our road map begins with the netflix sub stumble. shares are down ahead of the open on top to be the only faang stock now negative for the year. >> plus, it's all about apple. a big product unveil and analyst

price boost and news of a ran some ware attack on a key mac book supplier. we'll talk about the spac collapse transactions coming to a near halt amid a potential s.e.c. crackdown. and just overall cooling of interest carl, for that product, at least as of now. the liquidity providers as they say, karl, not quite there anymore. >> the charts are going to be interesting for some of our viewers to look at we'll start with netflix this morning, guys. jim, we went into the pit last night with pretty muted expectations but i'm not sure if the street was counting on some of the sub guidance we got so much. >> i don't care so much about the guidance as the at tute and the attitude was once again terrific i know this is an attitudinal stock. and they had ninny gusta, a fidelity analyst who asked a

series of hard question, a series of questions harder than most wall street analysts and the answer, things are on track, and the biggest competitors are linear tv and youtube, 800 million tvs outside of china, so therefore, that's what we're going to get, the actual content was constrained by covid, we did pull through, pull-through mentioned three times, but in the end, david, the level of confidence, whether it be the $5 billion buyback or the paydown in debt or just the overall sense that we're just scratching the surface still, made me feel like netflix isn't going to get its forecast right, it's going to beat it >> really? >> yes. >> i'm a little surprised to hear that. >> i know you feel that way. >> i know you can talk to some people that this is a company got into 4.5 million, mid january, they had some of the quarter and they were seeing the cadence and then they came in below that, and now they're guiding to a million for the second quarter, and we're into april a bit already so we're

already getting a sense there. there's a concern. and they say it's not competition. and yet churn is very low. >> right. >> so it's the top of the funnel, jim, but they don't seem to be adding that many people. how could it not be competition? >> they have to add more content. >> more content would be designed, to what, entice new people >> exactly >> or keep the old people? >> entice new people. >> the churn is so low, honestly, david, i thought it was a derisk conference call i felt that what they, i'm taking the other side of the train here, of even themselves. >> you're a buyer on this dip is what i hear you saying >> take it down another 10 >> 10 bucks or 10% >> 10 bucks. and i believe it will be at that level and what i like most about netflix is once again their belief in the product, and the strength of their coming slate, and that does make me feel that if this stock gets to 490, you got to stay in there and buy it. >> yeah, you're not alone, jim,

stifel today said they were waiting for the moment when the pull-forward became evident and three to nine months of working through comp issues and working through a period where the stock can compound consistent with revenue growth, they go to a buy 560 and here is what reed hastings said last night about competition. >> it's intensely competitive but it always has been i mean we've been competing with amazon prime for 13 years, with hulu for 14 years, it's always been very competitive, with linear tv, too so there's no real change that we can detect in the competitive environment. it's always been high and remains high >> yes >> a good time to be a show runner or a content creator. these budgets are creeping up on $20 billion. >> i thought they paid too much for the sony product but maybe they did, i think really the most enthusiastic part of the conference call was "lupan" and loved globally

how much it is loved the more you make content global, and let's say they make something, right now, david, in let's say honduras, well, and it's, speaking the language, that dialect, and i think that people would watch it. >> i think you're right but i do, again, speaking to a couple of people this morning, who were sellers of the stock, there is this concern, you know, to miss the guide from january where you're into the quarter and then lower the guide now to where they are and compounding impact of missing sub growth targets over time. it will have an impact on future revenue, and i just don't know how to think about the, what his answer was on competition. and by the way, listen, he's not a guy you can doubt. they've delivered, delivered, delivered hastings can talk about, well, we've been going up against hulu and amazon but disney plus, peacock discovery plus paramount plus there is a plethora of new platforms out there that maybe enticing people to some extent

and saying i will give that a shot on my limited budget before i get into this. i don't know and it's not u.s., jim it needs to be latin america and some other areas that are more problem mattic >> there are real issues here. i'm not denying that i'm saying they have now made it so that things have been lowered, everybody knows what you know, i'm not sleighting what you know, but everybody knows what you know. >> i have an acute sense for the obvious. have you noticed that? >> i do think, carl, this is something that elnik said from stake two, the competition is not linear, and it's not youtube, it's ours, it's the clock and the one chink in the story is that when we go out, we don't watch as much netflix and i think the great boom is all about being outside of the house, after being in prison so i do think that that's my worry, but they took care of that we're, by constantly talking about pull-through they've made it clear, carl, that listen, we did not do well,

we did not do well, and in that square, we don't do well and if you keep saying you're not going to do well and you do well, you have an explosive situation. say they come up with a "lupan" based in vegas i don't know i watched it twice i watched it twice i was in the hospital, i had nothing else to do ne they had netflix >> subtitle because it is french. >> i speak french fluently a french scholar. >> i walked into a french lit class and i thought i'm going to get blown outand ruin my transcript and never get to law school i knew better and they say we have these seven movies that's all you're talking about they didn't do that. and that was in many ways more important. >> jim, you are bringing up a broader question about the reopening, and that is why the street is starting to have,

giving the reopening story a second look. why is united guiding below? why is gas demand creeping a bit lower? are these problems in india going to somehow migrate to north america? there's a report in one of the north carolina affiliates this morning, jim, that the number of vaccination slots at one site for this week, the number that are taken, there's 3%. "times" has a piece this morning saying this is a war, getting people vaccinated now, we're in hand to hand combat portion of that war. >> i think that front and center, in the anti-vaxxers is the cdc. the cdc basically made you feel that if you take the j&j, well, you're going to face death, because a person died. the cdc is atrocious in doing that the nih by the way not very helpful in terms of once you get in >> it's a very weird time. >> it's a weird time david, the cdc - >> fully vaccinated, it's not clear yet what the reward really is. >> there's none. i went to mexico, and i came

back and the scrutiny, nobody asked me if i was vaccinated the whole time, i was asked ten times. >> pushing against a closed door that won't open. to really fully change behaviors as result of being fully vaccinated. >> you get vaccinated, what it does is you have a bad second day but the moderna made people sick, let's not do it. and the cdc is basically not even mentioning that the moderna, they get sick, what they're talking about the death rate, what is that death rate on the j&j? >> well, it was one out of 6.8 million. right? >> that's right. any one death we know is bad but how many people die of the flu >> a lot more risk every day you get in your car, that's for sure. >> what is with the cdc? >> i don't know. i don't know what's with the cdc? >> what about the impending doom >> i don't know. i don't have an answer. >> is stephen king writing their press releases >> at some point they got to start to make it more of a

reward to actually be fully vaccinated at least we got to be on the set together that was our reward. >> how about a rewards program like starwood or panera. >> or people who are simply refusing to be vaccinated because they're concerned somehow. for any number of reasons. whether it be health or privacy or the government's implanting a chip, or who knows. >> they're going to get it, they'll get it >> carl, i want to get to verizon earnings, we want to get back to that, i think a lot of companies are trying to understand what their obligation, or what they can do in terms of forcing. >> compelling. >> compelling their employees to get vaccinated and that is a conversation that's going on, i know, at high levels and a lot of companies right now, can we do that? >> but they have to make it so that it does matter if you're vaccinated right now, it's kind of a joke vaccinated by moderna, huh-uh, sorry. i tried to get in a doctor to see it, and they stopped me at the gate and they said how are you feeling? i said i'm feeling great did you go anywhere?

i said no, i've been vaccinated oh, really, have you been to florida? you can't go in. florida. the country of florida. >> 0.008. >> every hedge fund manager goes to florida and they get in anywhere. >> let's talk verizon briefly, guys, the stock doesn't look like it will do much this morning, the guest on "squawk box" this morning, the one number i'm focused on now, we had wireless revenue at 16.7 billion, that was up 2.4%. but you did have 178,000 phone net losses and that does differ from previous quarters jim, it's interesting, our parent company comcast re-sells wireless service and of course, they actually sell the network, they're renting the network from verizon, but reselling, and spectrum has a pretty compelling offer in the marketplace as well, in addition to obviously broadband i'm talking about, wireless you wonder whether it's starting to take a bit, a bit, i mean we're not talking about a large number here but it was negative. >> how about the fact that it may be negative but the spectrum

that they bought, they paid a fortune and obfuscated, hans, basically said, you may not need the next auction i want to know how many towers they need. i want to know the quality versus t-mobile. the quality, david, remember it was always verizon was number one. carl, yesterday, i got pajamas from t-mobile. they sent them to me >> i got a blanket >> yeah. >> was it a blanket or - >> please do not put that anywhere near anything that has flame. >> i'm leaving that thing in the box. >> that thing is just -- >> it came out of that box smelling not good. >> i think that could be spontaneous combustion. >> they got to stop wastes money on things like that. i'm sorry. no offense but it was horrible. >> and even when john is not there, and although some of his stuff was poly, half cotton and there is an overall belief it is three players and they will all grow at nowhere near the rates that previously t-mobile was growing as well and it will all moderate. >> i don't know. i think 5g is a big deal. >> it is a big deal.

it is a big deal churn stays very low retail plus phones, 0.18% at verizon. stock hasn't done much for a while. >> hasn't done much. it's a bond. >> yeah. >> it's about the dividend. >> if we just talk about verizon, no one will watch us. >> so we'll stop talking about it, carl. >> i mean it does not move a lot. on earnings, guys. but here's a window to talk about apple in a bit we want to talk about the verdict in minnesota yesterday former police officer derek chauvin convicted on all counts, and our frank holland is in minneapolis this morning good morning, frank. >> good morning to you, carl the death of george floyd and the trial of derrick chauv than took place in this courthouse behind me seen as a major inflection point in this nation as far as justice and race relations and law enforcement. hundreds of people gathered outside of this courthouse yesterday, awaiting the verdict. when the verdict was read, people they really expressed a

range of emotions. some people crying, some people hugging, some people shouting. hearing that derek chauvin was found guilty on all three counts many in tears saying this was a victory for the city, for the nation, and especially for the black community, and it was a dramatic reversal from the day before, when the jury first deliberated. so many were anxious, tense and concerned, about social unrest related to this trial. >> mostly during the trial was anxiety. heightened anxiety concerned which way this could turn out and what the reaction of the city would be but to look at it now, it's like a day of jubilee, a celebration, and what we're here for. but also, let me be clear about this, it's also bittersweet. >> now, bittersweet, that's a word that we heard over and over again, so many people saying it is important to remember that george floyd lost his life and that was the catalyst for this global movement, president joe biden addressing the nation about the verdict last night >> nothing can ever bring their

brother, their father back but this can be a giant step forward in the march toward justice in america >> reporter: now, what this means for the nation, for this city, for law enforcement, especially related to communities of color, that of course remains to be seen. but here, in this moment, it certainly feels like a page in history has been turned. carl, back to you. >> no doubt about that, frank. i saw some comments yesterday from business round table, and chuck robbins of cisco, we appreciate that, frank holland in minneapolis we'll take a break here and talk about apple's product announcement when we come back, what katy huberty of morgan stanley is saying about the company today and what they may say in the earnings print next week d aitus e antime, furear reagn. back in a minute incomparable design makes it beautiful.

state of the art technology, makes it brilliant. the visionary lexus nx. lease the 2021 nx 300 for $349 a month for 36 months. experience amazing at your lexus dealer. did you know that petco, lease the 2021 nx 300 for $349 a month for 36 months. is now a health and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. 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. new projects means new project managers. you need to hire. 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.

the bennetts really know how to put their wifi to work. whether it's work work... works for me. school work... it worked! or a work out... oh i'm working... they've got xfinity, which delivers wifi faster than a gig for all their devices. it's more than enough to keep everyone working. can your internet do that? this is work! this is hard! now xfinity delivers wifi speed faster than a gig. that means you'll have gig speed over wifi to power a house full of devices. learn more about gig speed today. unveiling new products at the spring-loaded event, including the ipad pros with the m-1 chip of course, 5g support, the liquid retina display, slimmer imacss, lost item tracker for iphone users called airtag katy huberty says the strength of the portfolio could help re-rate apple shares but only

takes the target up a dollar to $158. >> she's been cagey about the price target this note has what i've been waiting for her to do. it says see significant upside versus mac and ipad. they haven't matter inned a long way. what i like about katy saying is it is sticky, she thinks it could be here to say goldmanhas a sell on it. rod hall, and he says pointblank, that's just going to be a blip. don't trust it and how they make the quarter matters and if they make the quarter with these new products then you can bet that it's one-time only. david, i think that the office at home has made it so the consumer is like the enterprise buyer. the question is, is the enterprise consumer buyer almost done buying? >> uh-huh. because they're done at home. >> they're done. >> they've had a year. >> they had the hybrid they're done at home. >> and may actually go back to the office or fully outfitted already.

>> right the chip makers are saying, let's be careful, it's the enterprise that we're worried about. we know that it's a blip for the person and if that's the case, then rod hall is going to be right. the goldman sell now, i happen to be a huge believer in katy and she has been believable, but i do think that the idea that these new machines have more staying power than when they're first, when they first come out is new and katy's right about it. then you really do have the service revenue, you have the cell phone revenue you have the wearables revenue and then you're back to the original, you have the pc revenue. >> uh-huh. >> a lot of streams of revenue >> yes, it is. and carl, it's for a stock of course that's been flat so far this year but maintaining still the largest market cap out there, over $2.2 trillion. >> talking about a big buyback, too. dividend boost >> yes. >> she talks about returns and by the way, huberty did a 90-page report last week jim, about how corporations are going to have to completely reinvent

their i.t. budget as they figure out who will work from where other than the office and she took her pc estimates up for the aggregate market, up to 16.5, year on year >> i'm up to page 48 >> it's a long one. >> thank you appreciate that. >> thank you for filling me on that. >> do you know the battle? >> do you know it was traced to what napoleon did? >> leo >> yeah. >> i go back >> well, we'll take a course. >> will we >> yes actually, shoe start to do that. >> carl, it is about time we injected some really english reading, russian literature, shouldn't we or stick with verizon? >> i was an english major. >> stick with verizon. moby dig, right? >> melville. verizon. sleepy >> so far, we've gotten some french and some english lit, so

we're working our way through it it's only 21 minutes into the show we'll get a mad dash in a moment don't awhe.gonyer . h is giving the people who build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. wealth is watching your business grow. worth is watching your employees grow with it. principal. for all it's worth. when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim web. because platforms this innovative, aren't just made for traders—they're made by them.

thinkorswim trading. from td ameritrade. 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. some say this is my greatest challenge ever. spaces are more efficient, but i've seen centuries of this. with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;)

time for "the mad dash," and getting ready for an opening bell as well, six minutes ago. what have you got? >> logic and proportion are being thrown out on the aslmf conference call. >> you need the buses for memory chips and for logic chips and last night this company guided up, they weresaying, look, we thought that memory demand would be 20%, it looks like it's going to be 50%. logic, they thought 10%, it is 30%. this is the chip shortage.

this is the chip shortage writ large. and it's right in our faces. it's because they don't have enough of these machines everybody misjudged the demand speaking of like, we talked about apple, yes, the demand for devices shocked people nobody was ready for the stay at home, it seems like nobody was ready for 5g, nobody is ready for high performance computing, no one can get any chips and david, if you're in the united states, you're in the united states, right >> ah, yes. >> there's a picture regions where they ship to david, u.s. is 3%. >> uh-oh. >> south korea, 44 taiwan, 43 china, 15. david, we are a pitiful helpless giant to quote one of my favorite presidents richard nixon. i'm bringing him back. >> from the dead >> he was not a great president. but he did correctly identify the weakness of the moment h a great speech writer >> the opening bell a few minutes from now stay with us

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. ♪ got some action in the cruise lines this morning. goldman takes carnival from 21 to 26, jim and norwegian to buy

37 talking about smaller fleet, more flexibility they even raised the notion at least of vaccine-only sailings depending on what regulator mace say down the road. >> i think that one of the most frustrating things of frank del rio the ceo, excellent ceo of norwegian is, has had to deal with it, the cdc won't speak to him. he says listen, everybody has be vaccinated, the passenger, the crew, we're not going to have any children even though one quarter of the people who go have children and don't vaccinate the children and let's sit down with the cdc, and i'm hoping the goadman knows something about the cdc because i think the cdc wants to put these guys out of business and they're very effective at it. >> you really are having it in for the cdc right now. >> i would say that. >> very upset. >> the prc, cdc, don't come in to me about alphabet soup.

i'm very worried about their balance sheets they need the cruises. >> they do. >> and the cdc needs to give them the high sign >> they got to figure this out. >> but once again, carl, if you're vaccinated, it doesn't seem to mean anything. how is that possible >> excellent question, guys. definitely wrestle with that one, as we see the opening bell, the big board, a maker of soft war for automation systems ui-path, the founder and ceo, will be our guest on "tech check" at 11:00 a.m. even and on nasdaq, angie. and deutsch adds ual on a catalyst buy idea in the 15% drop in the last couple of weeks with what they say is very much leveraged to corporate travel, and of course long haul international. >> right, it reminds me of netflix. it was a really bad call ual. i mean it was just bad

we heard from gary kelly from southwest, but everyone, i think one of the things that happened yesterday, is you correctly pointed out, united airlines had a bad quarter and people are talking about maybe things aren't as robust, i think they are nozt as robust as united airlines and i thought delta was encouraging when we heard from them last week and i think when we hear from gary kelly, he will tell us. >> and keep back to business travel in trying to assess the long-term profitability of the airlines and the importance of business travel it can't be understated. >> no, it can't. >> and we just don't know. i am hearing people are getting back on airplanes to some extent but then i also hear things, you know, pfizer, not letting anybody travel this year. >> pfizer? >> they're that confident in their competitive drugs? >> by the way, who can get anybody vaccinated more than them, right? i mean and boosters.

there are a lot of companies that have basically said no corporate travel this year >> they think that >> they do think that. and then maybe they will change. but again, back to the idea that we keep talking about, what do you get when you're fully vaccinated and a lot of companies are still grappling with it and on the other side, i hear obviously bankers who live on airplane, want to go visit people, want to go say let's do so and the clients say no, we don't need to or i can't let you in the building. i can't let you in the building. >> i have people, and this really is important, i've got guests who went, who are "mad money," who very much want to come in and are you vaccinated, i'm vaccinated and i have to say, well vaccinated it's got nothing to do with it, deserves, got nothing to do with it, clint eastwood and gene hackman, you know and it's amazing, one of the executives who said he wanted to come on, why won't you let me in, i'm fully vaccinate and i'm

like i don't know, because it's our rules. >> and a lot of others almost no one is letting anyone outside. we're barely letting anybody in here who works here. >> do you know there is a giant wild turkey trying to get into the building today as i was, same time. >> fully vaccinated? >> i think it was moderna and feeling sick and that's why he was there. second shot moderna will do that for you. >> a nice wild turkey around here. >> i get my second shot this weekend, guys. >> you do? >> i'm sort of bracing for whatever it brings us, yes. >> netflix you'll be watching netflix >> maybe maybe. the journal's got quite a piece about pfizer identifying now fake vaccines especially in mexico and poland. and i guess it had to be expected at some point but the ability for some of these criminals to bring a load of counterfeits, and people obviously scrambling for them, use them right away. that's something that pfizer now has been able to pin down at least some instances of actually, of actual counterfeit

vaccines >> i think pfizer, the tock is starting to react to the fact that we will have to have boosters and it will cost money and this is the franchise for pfizer if you take a look at the numbers, for what the analysts are predicting for 2022, it's a big dropoff. if there's a booster, that won't happen and i do think that pfizer, i really believe pfizer, david, is, i think it's, i think it's too cheap. >> do you? >> yes >> because we'll keep coming back. >> yes. >> it won't be a one time and you're done. >> no. it will be more like the shingles vaccine that i hope you've had. >> not yet >> it was hard to get for a while and a pandemic going on and i got to get that. >> and i'm getting the shingles boost ther weekend, which reminds me, carl when the doctor says you have to have a booster, that's money in the bank and it's going to be money in the bank for pfizer. and i really think that the pfizer stock is too cheap. because this franchise turns out to be bigger than anyone thought. remember, they also --

>> how about moderna then? >> moderna stock is cheap. >> cheap >> moderna has a vaccine this is different. moderna can use that technology, that mrna to solve a lot of illness, not just this do you know that the exact bottom of the dow last year was the day that moderna said we have one person and we're one for one, that was the bottom. >> was it really >> that was the bottom cruel irony, david >> yeah cruel irony. carl, taking a look at netflix shares, jim will get his chance, he said down another 10 buck, roughly where we are right now, down 7.7%, about $41, you can see it right there, as people adjust to the new guidance from the company. we will see. >> and tesla and dogecoin. are you doing tesla? >> what? >> what about tesla? >> did you see the video >> no. you didn't see the video on

china. >> carl, did you see the video on china >> how slow were those guards to take down that woman who were saying that tesla doesn't work they kind of bided their time. you may not feel that i do and the tesla franchise, chinese franchise, and they better start behaving and they say the woman who tapped them was a serial complainer and why would the low level chinese government, the low level chinese government was putting out negatives about elon musk and if you don't get it, it will be higher level and you don't want to be where china and boeing is. and you want to work with xi >> do you work for boeing? >> looking at the quarterly. >> well, you know what, we haven't talked spacs in a few days we haven't in part because there's not a lot new so to

speak except for the continued sell offwhich is worthy spending a bit of time on i called it weeks and weeks ago spac-out >> i loved that. >> everybody lovinged that one. >> the lights haven't been turned back on i said earlier at the top of the show, the liquidity providers aren't there one question of course is have you had the cohort we talked so often about, retail investors and the likes of people who are focused on wall street bets to a certain extent may have provided some of that liquidity for spacs, have they gone away, has that contributed to it, but we also know as we can take a look at any number of them trading below ten bucks, which by the way is a free call, in many ways because you can say no, i want my money back, so there is some interest there, you can split warrants and a lot of different things that more sophisticated investors can do here when they trade below ten but the s.e.c.'s continued focus on it is also a

concern, both from the projections side of things, and whether they're going to crack down on their ability to offer these, not outlandish but certainly far-reaching projections that they don't have to be beholden to in any way and pipe investors and you see fidelity that's involved and blackrock, all of in these pipes but a certain percentage of assets that they like to keep it to, and right now, with the s.e.c. focused on pipe, and how long they have, and the warrants, and how long you may have to hold your investment, it's making it very difficult for these companies to allocate new funds for pipes, because they don't know how long they will have to hold on to their existing ones and they want to keep their allocation level overall at a certain percentage of assets. >> this is something that starwood, doing five or six or seven, you're saying that's the deal, he's very good >> he's very good. my point is that overall, we are going to allocate whatever percent of this portfolio to pipes. but right now, we don't know, when the turnover is going to

be, when are we going to be able to sell and we're not going to necessarily commit to it until we know. >> that's a hammer. >> so it comes back to gensler at the s.e.c we will continue to stay focus. >> i made a joke about jagdeep, you introduced me here. >> i didn't introduce you here we did the first interview here and focused on the company and you took them as you always do as your guest. >> but carl, he came on the show last friday he came on "mad," and the stock is down 64% and the short seller saying the thing is a fraud, i don't think it's a fraud but the problem is people got more excited about his data than even he was, and carl, these spacs have forecast, and the forecasts are so fabulous that you almost, you feel compelled that it's free money. until you realize that - >> and we've gone through that so many times. take a look at cciv, of course, which is lucid motors, they haven't de-spacced, i haven't

seen that one below 17 and chamath palihapitiya clover health, that has been a poor performer but he did put his performance out on twitter i think it was yesterday, claiming of course things are quite strong and it's true if you invested with him at the right time and sold at the right time, you would have done fine acic, flying cars. at last quest 9.89 you can go on and on here. >> flying car, you really are, that was the one - >> i like to say flying cars but they're not of course. they're air taxis. >> i think ark is in that one. >> jim, you want to talk railways a little bit? >> david, i've been thinking, if you're not going to talk about canadian pacific, i don't want you as my partner. >> i figured i would do it as a faber report although you can be part of it if you want to be but you see this morning, we've got, the news we got this morning is that canadian national does come out and they filed their notice of intent to

set out that they will proceed under the surface transportation toward the current merger rule, they need to do this, this is the new news of this morning, they're getting started very quickly here, they will maintain service and competition, after the combination they said and they do intend to seek approval of the so-called voting trust, of course, that's the way they're going, and that trust would enable shareholders to receive the full payment and consideration of roughly $325 per share proposal, a bit less given the falling stock, and without having to wait for final approval and they're saying that they support the stb review of the combination under the modern new rules, as opposed to under rules from four decades ago that have been imposed by virtually every other party filed before the stb. so they say new rules. which by the way are not new they're 20 years old but kcs may have been exempted

from them. and they don't care. and here again is what they had to say in terms of their bid, versus of course the current deal that kansas city southern is going to be acquired by canadian. >> we definitely have the best value to offer you know, we have the best, the better bid, we have the better partners to personalize even more value at a time where we decided they want to come buy another railroad it's a growth story. it's about creating new business it's been converting the highway, and it's also to enable customers to do more trades, and connect to more customers. it's not about removing any competition. >> of course, for its part, jim, canadian pacific yesterday came out, by the way, pointing out that their ceo's from alabama which i thought was kind of interesting. going that route but they also went on to say that the proposal, that they were talking about is inferior because it creates adverse competitive impacts and raises other serious public interest

concerns, going on to say as well, cn's proposal increases regulatory and anti-trust risk for kansas city southern shareholders and reduces benefits for employees >> did you see how meager the overlap is, the anti-competitive give me a break. i'm going to say the canadian side for a second. they are worried about a baton rouge new orleans overlap. and listen there is a southeastern iowa overlap. northern missouri. there's overlap. i mean holy cow. david, those are very anti-competitive, french fries i don't think there's that much anti-competitive. >> you don't >> i don't. >> and every one of those, they can call, the way these things get solved they give them to csx which by the way had a double digit forecast, last night, carl, the first time they have done double digits since 2011. so the railroads are heating up. csx can take the ones that are anti-competitive the deal gets done there. there's my thing

the deal gets done >> all right good conclusion. >> thank you >> the faber report. >> so carl, i'm very bullish on this deal. i am >> all right fantastic, guys. in the meantime, faang, travel name, financials, with moderate losses this morning. we will start with rick santelli this morning hey, rick. >> good morning, carl. well, 10-year 1.55, and down one basis point we had some data today, and we had mortgage applications, with the mortgage bankers association. the reason i'm bringing it up is the most recent number was up 8.6% january of this year, up 16.7% the first week so if you look at those two numbers, they're the best as you can see on the chart, going all the way back to pre-covid, so march of 2020. and i think that's something we mean to bring up, even though some of the housing numbers have been less aggressive of late it is still a sector, you want to pay attention to that's definitely in the contribution

camp as far as rates, 1.56 down one let's look at what is going on, on the 24-hour chart and hugging the 1.50s. and with a two-day face on it, you can see what the score is in treasury yield we've lost some mojo to be sure. and equities to some extent but many believe that the last day of march is closing yield of 1.74, it is going to remain the highest closing yield for a while and certainly seems that way on the charts. if you go to a week to date, excuse me, a month to date chart, this is very important. because the month of april hasn't been kind to interest rates, and it hasn't been kind to the dollar index. and we're down 18 basis points, from the high close at the end of the month, which is 1.74, as i mentioned so that's down 10% i hate using percentages on yields but i do want to show how aggressive the move has been, even though it's been very orderly. now, if we switch gears a second, and go to the foreign

exchange market, the dollar hasn't had a good time, basically yesterday a six and a half week low, as you can see on the chart starting the end of february but what we really want to pay attention to is how much staying power, the european currency, the euro has as they're trying to wrap their arms around covid and their interest rates are much closer to ours than they were at the beginning of the year. carl, jim, david, back to you. >> thanks very much. rick santelli. still to come this morning, morgan is exclusive with the new lockheed ceo, jim taiclet, the first interview since the top job at the company. >> and small bounce at the open, dow goes green trying to avoid the first three-day loss since the early part of march. back in a moment

ok, at at&t everyone gets our best deals on all smartphones. let me break it down. you got your new customers — they get our best deals. you got your existing customers — they also get our best deals. everyone. gets. the deals. questions? got it. but, why did you use a permanent marker? because i want to make sure you remember. i am going to get a new whiteboard. it's not complicated. only at&t gives new & existing customers the same great deals on all smartphones. get up to $800 off our latest 5g smartphones.

did you know that petco, is now a health and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. 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.

getting some breaking news from the fda this morning in its inspection of emergent bio solutions. let's get to meg. >> reporter: good morning, carl. the fda saying it completed that

inspection of the emencht merge ent bio, and it has a form, with discrepancies at the plant that needs to be fixed comfortable releasing any material from the plant. this, of course, is the plant that we know had lost a batch of up to 15 million doses of the j&j vaccine because of what seemed to be cross contamination with the astrazeneca vaccine after that the astrazeneca vaccine was moved to another location we don't know where yet. they are only making the j&j vaccine. with this inspection, the production of the j&j vaccine is still stopped until they address the issues that the fda lays out in the letter. and there are at least nine of them here. one of them, the first one that the fda essentially says the cross contamination hasn't been thoroughly investigated.

there are other issues they lay out like the building isn't maintained in a clean and sanitary way it's not a suitable size there are components that weren't stored properly. so a lot of these things that emergent will need to address and j&j as well as it's taken control of this facility and the manufacturing of the vaccine this, of course, guys, is key to j&j being able to make the vaccine here in the united states, getting this plant fixed. so more news on emergent bio solutions. there's an investigation into the company as well from the congressional level. it will be a story we'll continue to follow as we also follow the pause of the j&j vaccine. >> first, robert cramer, how can the ceo survive this and second, j&j, they must have had no facilities to make vaccines in this country because the choice of this company is very unj&j like given

what we're hearing >> yeah. and jim, you bring up a point ooifr heard from other folks as well the fact that j&j used a contract manufacturer on this vaccine. you know, emergent bio solutions essentially exists because of emergencies like the one we're in right now with the pandemic it's supposed to be a place that can ramp up production quickly of vaccines in a pandemic-like situation. clearly there are a lot of issues at this facility, and it is pausing the production of this vaccine, and j&j is bringing merck on board as well to help manufacture. but this is going to take months for merck to be able to get everything up and running. guys >> very good >> meg, we'll watch that if your help thank you. we'll keep an eye on the markets. dow led by some industrials. not so much on the travel or financial front. disney currently the worst performing component we're back in a moment

hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you like..like it's a mirror, dad. you know? alright, okay. how's that? is that how you hold a mirror? [ding] power e*trade gives you an award-winning mobile app with powerful, easy-to-use tools and interactive charts to give you an edge, 24/7 support when you need it the most and $0 commissions for online u.s. listed stocks. don't get mad. get e*trade and start trading today.

bike shop please hold. bike sales are booming. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from our resume database. claim your $75 credit when you post your first job at indeed.com/bike.

let's get a wednesday edition of stop trading with jim. >> there's a big transition going on with gregg smith stepping away, the cfo of

boeing he's going to be there for a little bit but cfo who was an operational cfo which is a highly unusual. he will be replaced by more of a strict cfo the thing that gregg is known for besides just having a tremendous grip on things is he did say, listen, we don't need to sell equity maybe a traditional cfo would be more willing to sell equity, but that's why the stop went down ten yesterday. i think mr. calhoun is sensitive to the idea if he does that, it will crater the stock. i remain in the camp that you can own both >> they made a couple comments no dividend reinstatement in the near-term and positive cash flow in the medium term we'll see what happens >> we need china >> yeah. yeah you got a big show tonight >> yeah. three companies that are all blueout numbered

ppg, qualtrics and then marvell. they're at the center of everything high performance computing, cloutd, and 5g and they are doing so well it's incredible. they just closed a deal the chinese were willing to let them do because there's no overlap. this is about the state of the world. i'm excited about it >> i know president xi is going to attend the u.s. led climate change meeting summit on -- >> that's an olive branch -- i mean, maybe an olive i manufacture olive oil. >> it's olive oil. >> still waiting for mine. still waiting for my olive oil >> we'll see you tonight, jim. 6:00 p.m modest gains here. dow is up 114.

good wednesday morning i'm carl quintanilla with david faber and morgan brennan dow is up 100 plus

s&p up about 11 trying to avoid the first three-day loss since the early part of march. so far doing okay in that department nasdaq is going green as well. up 12. >> in a few minutes we'll hear from our interview jim taiclet in his first tv interview since taking the job first, we're 30 minutes into the trading sessions here are the three big movers. verizon beating on the top and bottom lines they lost more subscribers than the street anticipated shares down slightly we continue to watch the rails with csx seeing the q-1 profit dip about 8 % thanks to pandemic-related disruptions and higher -- volume growth is outpacing gdp. shares up about 2.5 %. lastly the biggest mover of them all this morning, netflix shares

sliding following the big subscriber miss and what's expected to be an even weaker subscriber growth for this quarter as well. >> that's where we're going to pick it up the top and bottom line, as morgan said sub growth slowing thanks to the pull of covid-19 in 2019. with us the director of partnerships and will power senior research analyst at baird. good morning good to see you both >> good morning. >> good morning. >> will, part of the consensus line of thought this morning is we knewthere was a pull forward. we knew there would be a quarter in which that was evident and the pullback according to at least some on the street today is that would bring an opportunity to buy are you in that camp >> we are firmly in that camp. we think there's still a lot of runway ahead this is a business with 20 0

million plus subscribers so whether you have 4 million or 6 million in a given quarter doesn't move the needle that much i think a couple areas where we take a lot of comfort is the fact that engagement in the company is still up year over year who speaks to the long-term opportunity and the pricing power of the model turn is lower than folks expected coming out of the pandemic so as we look at the long-term opportunities, the penetration up side, we do like this as a buy opportunity here >> heather, i wonder how you think of the name now that we're in this new environment, and reed said it's wobbly right now where it's really going to depend on the slate, and budgets are going to count and what disney does is going to count. it's not having the sand box to yourself like you used to. >> absolutely. i think in many ways this q-1 story is major hollywood studios

winning the battle it remains to be seen if they're going to win the war there's a huge amount of head room for netflix and other streamers with 200 million subscribers worldwide. they're going after the linear tv space there are nearly 8 00 million tv subscribers worldwide outside of china. and that leaves a lot of head room still for them. in q-1 we're seeing interesting trends happening with the hollywood studios launching their services disney plus reaching over 100 million subs and over 95 % of the new subscribers in the u.s. to video streaming services were not netflix in q 1 that speaks to the rise of the hollywood direct to consumer services >> and yet, heather, they said during the call they don't believe competitive intensity materially changed in the quarter or was a material factor in the vasriants as the overforecast was across all our regions. does that make sense

>> no. i think they're soft pedaling. this is the beginning of what they knew was coming for years disney pulled out of their film deal to launch disney plus smartly netflix signed a deal with sony pictures that's going to help them over the next five years. questioning whether or not they should have just bought them but i do think that there are head winds here on the competitive side that netflix really has to face >> yeah. well, so what does that mean for the top of the funnel? i mean, we know churn continues to be low. current subscribers seem happy with the level of content, but what does it mean for new subscribers given the competitive landscape that you're describing? >> subscribers are really going to have to choose how many services they want to subscribe to we've seen an expansion of it in covid. now subscribers on average the household has over four services in the video streaming space so there is an increased

app appetite, especially as they cut the cord and save on their cable bills to subscribe to streaming services, but there is going to be a reckoning over time and a right sizing i think we're going to start to see netflix's turn rates start to stumble a little bit and we're seeing signs of it now >> given the fact that we now have so much more competition across the streaming landscape in general content continues to be more and more important everyone seems to be spending more and more on content netflix is up against comcast and disney for example with other sources of revenue to help arguably subs size that consent. how does netflix navigate that is it going to have to find other ways to generate money >> there's no question it's more competitive out there. no real surprise on that front and i think heather is spot on, though, that the principal opportunity is to -- we think there's room for multiple winners. at the top is going to be netflix. we'll have disney plus and some

combination of hbo and others. if you look at the breadth of content, the technology they bring to bear, analytics they have c we think netflix is well positioned they're early in terms of pushing localized content. look at europe the u.s. today has almost 50% broad band netflix achieved almost 50% penetration of households in europe it's 50% it speaks to the opportunity as they grow more localized content in europe and asia and other regions of the globe we think there are still nice growth opportunities and i think to the question that on additional growth opportunity, sure, i think over time they could look to edge out. more interactive program you could lead them in a path of more gaming opportunities. >> heather, it sounds like you have thoughts on this as well? >> i agree i think that they're just getting started with gaming and merchandising. and so that is some untapped opportunity. you really have to have globally

universally popular ip to go all out the way that your parent companier comcast has done the theme parks and merchandising. i think netflix is going to have to really invest in some broader reaching ip if they want to dig deeper into other revenue sources outside of streaming >> will, before we let you go, i want to get your take on what apple told us yesterday. remarkable how much the m-1 chip was sort of the star of the show in the new products. i wonder what you thought yesterday and what you're looking for going into the quarter. >> i thought it was a great overall event. one of the rare events where they had widely expected ideas orpossibilities with some of the nice to haves. i think high expectations for the new mac, i-pad pro great to see air tech unveiled it's been much rumored for

several years. it opens another product category for them. they can ease into the broader eco system opportunity they have a billion iphones globally you can build a significant business very quickly. and just having a new apple tv remote, i think that that's a positive i thought across the board it looked positive. there are high expectations going into next quarter. we have most of the segments growing post 20% for business for size i think that's phenomenal. we still like the overall setup. at the end of the day, i think we think this is a core work beneficiary. we've seen that and expect it to continue to resonate in the numbers the next couple quarters. >> yeah. and heather, i want to throw one to you as well mostly because of what they said about content and the podcast subscription delivery do you think the delivery is more sophisticated >> absolutely. i think another big trend in 2020 and into 21 is the growth

of audio only as a core entertainment experience and i think that apple is leading the pack there along with amazon and what they're doing in audible i think it's going to be a really interesting space to watch, and it's giving rise to new tv shows and spinoffs and opportunities to create even more content, so as consumers become fans in audio only, we are seeing some great new revenue opportunities in the content development space coming from there >> guys, great overview of both netflix and apple today. appreciate it, heather will, we'll talk to you later. >> thanks for having me. >> thank you as we head to a quick break, here's a look at our road map for the rest of the hour starting with another spac on the street as nfl data rights owner genius sports closes the $1 billion spac merger plus it's a busy week for nasa we'll talk with the acting

administrator ahead of another big spacex launch on friday. it's his first tv interview since taking job last june don't miss my exclusive with lockheed martin ceo. at the end of the day, we may not have the numbers of a chie fla or russia, but if we can manage and integrate our systems better, i think we can maintain our deterrents and operational capability as well i think it is a new era of competition. we're going to have to bring the best of u.s. technology both in the defense industrial based and beyond it in telecom and tech industry we're striving to do that here at lockheed martin, bring some of the partners in to work with us keeping your oysters business growing has you swamped. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed

you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo ♪ ♪ old ideas, that's it. calling anyone with grit change this, change that, but don't ever quit yesterday's thinking is done from a challenge we never run so keep pushing forward toward a better world for everyone. the future isn't decided yet. it's up to us to make it happen. make a different future start different at godaddy.com

wanna help kids get their homework done? well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna learn. over the next 10 years, comcast is committing $1 billion to reach 50 million low-income americans with the tools and resources

they need to be ready for anything. i hope you're ready. 'cause we are. welcome back shares of lockheed martin slightly higher after they reported earnings and upped the full-year impiends i spoke with the ceo in his first broadcast interview since taking the mel m last summer >> the big drivers of the performance are the f-35 program, for example we're going to be growing sustainment, stable and growing a little bit in production and also we're continuing to do development programs to increase the capabilities of the aircraft in conjunction with our customers. that's a strong driver we're having really good success in ramping up production of helicopters adds well. and across all our business lines including space, we're

winning programs across the board. and we're going to be putting those into development and production as well all right. let's talk about defense budgets. it's something that investors continue to be so keyed into right know at least from a stock perspective. th the biden's administration on defense is coming out. we've talked about this. i think your expectations before were we're going to see potentially a flattening out of the budget how do you see it now, and how do you find ways to grow and continue to add value? >> so for fy22 the proposal for the top line defense department is up about 1.6% higher. it's a reflective of a recognition i think by the government that we're in a renewed era of great power competition. companies and the countries rather like china and russia continue to build their military

capabilities they are acting as if they wish to expand their degrees of freedom and their realm of power. and that would be contrary to the national security to the united states. i think the administration realizes this is a growing problem rather than a shrinking one. so as a result, the defense budget should stay stable and perhaps growing slightly as we now see it going forward how is the threat environment changing if at all how do you see the missions changing i guess over the longer term >> well, i think over the longer term, we're going to have to face, especially in respect to china, a country that has a strong production capability they'll be building ships and aircraft and other military equipment and forces just as russia will do and they're not just doing it in low tech spaces. they're doing it in high-tech spaces like hyper sonics, space weaponry and cyber capabilities

that could be really disruptive to us. and that drives us at lockheed martin to try to create a higher deterrent through a network centric architecture where we can tie the systems we have together. at the end of the day we may not have the numbers of a china or russia, but if we can manage our systems better through a network centric approach, i think we can maintain our -- it's a new era of competition we have to bring the best of u.s. technology in the industrial base and beyond it in telecom and tech industry. we're striving to do that here bring some of the partners in and work with us >> certainly you have laid out this vision for a 21st century war fighter. your background is in telekom. what was the strategy look like? is it lock he'd building out 5g

infras infrastructure is it something else >> it's not commercial 5g infrastructure but using the technical capabilities and advantages of 5g wave forms and other technologies like distributive computing, artificial intelligence to really weave together our defense systems in a way that makes them much more capable we're talking about our defense system versus necessarily building a broad network force for phones and other things to connect to >> i wonder what that means in terms of partnerships with silicon valley and tech and other industries >> we're pursuing them pretty aggressively right now when it comes to contributive computing, there are a number of firms that do very well at that, distributive cloud computing firms. we're talking to some of those a couple of the largest telecoms in the united states, we're working on how to apply our security and crypto and cyber

capabilities their technologies and to make them more resilient in the 5g communication system >> has the defense department or the federal government expressed interest and talked to you about it >> well, they absolutely have. in fact, the joint chiefs of staff have a concept they call joint warfare concept. when i speak to the leadership there about the technologies we're investing in, the ones i just listed, literally it's the same list inside the defense department now at the highest levels on how do they incorporate with us in industry those kind of technologies at a much more accelerated fashion. because they feel they have to take the initiative as well. so i think this is a great match between government, uniform military, and industry here. and because of the position of on platforms of lockheed martin, aegis shipboard systems, we've got space assets already up and flying and we work with the army as

well so we're cutting across all of the -- what's called domains, air, sea, space, undersea and arrow space to tie all the things together. i think our platform position gives us a leadership opportunity, and that's what we're running after. >> i'm curious what you think, and i realize lockheed is sort of in the lead in many ways. it's still a small part of the portfolio, 3 billion in orders but expected to be a big future initiative is hyper sonics what do you envision that growth trajectory looking like? >> we think it's going to be significant. frankly, an offensive and defensive mode because as i mentioned earlier, china and russia are developing hyper sonic weapons and we need to defend against those. when it comes to offense and defense, hyper sonics implies speed. that means not only does the vehicle have to go faster. it generates a lot of heat that heat needs thermal management and also the calculations to

actually operate those systems and the computing power that you need is even greater especially if you're trying to intercept them so we're going to need to integrate as much as we can into our engineering and operational capabilities to create the best possible hyper sonic offensive and defensive products to add to our national defense >> yeah. and just to shift gears a little bit before you wrap this up. i spoke to your cfo as well. one of the questions i asked him i'm going to put to you right now too. that is some of the changes are proposed changes to the corporate tax structure. how are you thinking about that at lockheed and how could that -- i realize there's a lot of moving pieces and uncertainties still, but how could that affect the company? >> tax policy will certainly affect our company in a couple ways corp. tax rate, if it increases, will reduce all company's cash flows and our abilities to invest back into the company and create jobs. specifically there's a hold overissue from the 2017 tax bill

that ought to be remedied. it makes it more difficult and costly to do independent or contracted research and development. i think if they have an eye on those two issues, they'll do what they need to do to conduct and create a fair tax policy for all of us. but in the process, you know, we really hope there aren't disincentives to investment and research and development that come out of that but we'll see where congress goes and where the administration takes it. that's a big chunk of the interview. we talked about a -- lockheed -- overruns continue to crop up cockpit electronics upgrade is in the news today. i asked him what the company is doing to bring operating costs down since the fighter is expensive to fly and analysts believe that that actually poses the greatest risk to future production volumes

he said they're working with the joint program manager that works on it. and lockheed is also getting more involved with the military services directly to collaborate on bricking some of the numbers down the other piece of the puzzle is aero jet rocket. that is pend right now and undergoing regulatory review when you talk about space and hyper sonics, aero jet fits into that it's safe to say lockheed is thinking about partnerships and all kinds of other ways to basically continue to grow this portfolio for what he calls the 21st century war fighter in what is expected to be a flattening defense budget in which we're looking as a country to potentially do more, especially on the tech side with less or really the same. >> yeah. >> amount of dollars >> and again, back to the f-35 which i know is so important to

them any expectations in terms of where that ends up he seems like yes, somewhat positive in terms of the ability to become more efficient in both making them and servicing them >> yes i think a key thing is that when you talk about the pandemic and the pandemic impact on the industry more broadly, f-35 was one of the programs especially for lockheed that saw some impact because it's a global program, a global supply chain nonetheless, they do continue to bring the costs of manufacturing and production down. sustainment is very much in focus. the operating costs are in focus, and based on all the confers i've had, especially in recent weeks, following this story because the new administration does mean new scrutiny the expectation is all the costs will continue to come down we'll continue to see how it plays out. the other thing i would just note, unrelated to this, 114,000 workers for lockheed martin. half of them were continuing to go in as essential workers given national security in the middle of the pandemic.

the other half have been working remotely, and they, and you're following this as closely as i am, they are looking at and basically adopting a more hybrid model for those employees. including offering some of those employees that have been working remotely the chance to work longer hours over a four-day workweek rather than a five-day workweek >> interesting >> yeah. >> it does go to that new sense of flexibility that employers are going to have to offer given the last year. . >> yeah. all right. carl >> all right guys, keep your eye on canopy growth company announcing a deal with wine and spirits distributor southern blazers making a distribution for the cbd infused beverages. more "squawk on the street" continuing after a break

that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything. like a coffee run... or fedora shopping. talk to your broker. ten-x does the same thing, - but with buildings. - so no more waiting. sfx: ding! see how easy...? don't just sell it. ten-x it. (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. new projects means new project managers. you need to hire. 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. - [narrator] at southern new hampshire university, we're committed to making college more accessible by making it more affordable, that's why we're keeping our tuition the same through the year 2021. - i knew snhu was the place for me when i saw how affordable it was.

i ran to my husband with my computer and i said, "look, we can do this." - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu. stocks were going to try to avoid the first three-day loss and all three indices have moved into the green you can see the dow above 43 k the bank of canada is the first major central bank to trim the

pace of qe something we'll watch as other central bank meetings happen in the next weeks a look at the health care sector ticker xlv hitting a new all-time high. anthem posting an earnings beat. a revenue miss the company raises the full-year guide amid higher pharmacy benefit management revenue stock hit an intraday high yesterday. coming up, another spac on the street with nfl data owner genius sports making the market debut. we're back in two minutes. ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪

♪ ♪

welcome back here is your cnbc covid update in india crea-- india is record

fewer than 100 deaths a day. today it's reporting 2000 deaths and almost 300,000 cases both are daily record highs. lower house of germany's parliament approved what's being called emergency break legislation. that's standardized restrictions in areas where covid is spreading. it now goes to the upper house amid blood clot concerns the eu will not get 300 million doses of vaccines from j&j and astrazeneca. it is not, however, ruling out future contracts with the companies. and production at an emergent bio solutions plant is paused as it corrects problems details in an inspection make public this morning. millions of j&j vaccine doses had to be destroyed due to an error in the facility. you're up to date. thank you. nfl data rights owner genius sports officially going public this morning in a sense.

this is after it completed its spac merger with dmy technology 2. joining is the genius sports co-founder and ceo congrats on despacing as we call it, i guess. back in october, october 27th when the deal was announced, you put out your projections and i just wonder are you still expecting roughly 238 million in revenues in 2022 and $68 million in group adjusted ebita >> yeah. we are forecasting in the last investigation we put out the business is performing very well it's performing as expected. and we are regrettably excited about completing the merger and completing the transactions. the stock exchange and the options that it brings to the business >> well, what opportunity does that bring to the business >> so you know, i mean, i've said it before the reason we wanted to go

public and wanted to trade on the new york stock exchange was to give us access to paper and access to currency that allows us to super charge our growth. we think of growth in two parts. there's a lot of organic opportunity. increasing our technology staff that we have driving fan engagement and helping the sports leagues access revenue opportunities in the face of some really quite difficult conversations around the future broadcast revenues. the other area we think about is inorganic growth there's smart interesting technology companies that complement what we do and help our partners drive that growth and access the future markets and future areas of technology-driven solutions they need to think about. >> yeah. for people who may be watching sort of focusing on your company for the first time, i'm looking at what you had as a comparable company benchmarking you have names like trade web and s&p global, information and data analytics, online gaming

and draft kings. where do you see your company fitting in >> what we do as a business is we work with sports leagues and federations on a global basis like the nfl, and we provide them with technology in exchange for the rights to collect and monetize that data once we've got that data, we provide that software to sports books for outsource bookmaking and also media companies as well so the revenue model we operate is really a mixture. we take a portion of what's known as gross gaining revenue or net gain revenue from the sports effectively we participate in the growth of the sports betting markets almost like the rising tide with -- the system in the infrastructure but on top of that, our revenue model provides us software services type revenue model for things that we provide around the data sector. >> it's morgan i want to get your thoughts on what we're seeing play out in europe right now

where soccer is concerned, genius partners with the premier league we saw this super league kind of come and essentially go in recent days. and while that might be the case, it does kind of shine a light on the economics and the business models and whether they've worked or not. where soccer, at least european is soccer is concerned how are you thinking about it? what does that mean in terms of your business? >> sure. i mean, look, there's been conversations around the super league since i don't know the 90s, and i think while covid exacerbated problems, what it's doing is breeding focus. the issues around how sport is funded i mean, there's a lot of change and dynamic situations going on at the moment with some of the future broadcast revenues, how it's going to work and in europe the way that the sports leagues operate is slightly different to the states and it really has sort of brought into focus and really made people think about how revenue is going to be driven in

the future remarkable interview we see it as an opportunity. we're a technology company we partner with sport leagues. what we do is really help the sports leagues access that revenue pool we do it in the sports betting sector and med ya and streaming sectors. we allow the sports leagues to really maximize the revenue potential that they can have from their product which is obviously putting on sporting events >> yeah. all of which makes since why the david levy joins you what are your expectations for what he can accomplish for the company? >> we're excited to have david he has a wealth of experience in the media sector and when we think about the market, we think about convergenconvergence. as i said, the broadcast market is undergoing dynamic change there's a drive for new types of engagement and products to be provided to the fans and really this convergence

between the technology space, the sports betting space and really the space that david comes from is the traditional media space is something that provides a huge opportunity. so having david on board, having his guidance and his mentoring around that sector will allow us to position ourselves in the best way possible to take advantage of the opportunity of the dynamic change going on in broadcast markets. >> and finally, mark, you went public through the spac process as many others have. it's come under more scrutiny of late what's your take are you glad you went that route as opposed to a more traditional way? >> it was the right decision for us i've said before that spacs are suited to specific types of businesses with specific types of growth. you have to have high growth and with covid, we grew 26 % and again we have strong growth forecast so the spac process allowed us to move quickly, allowed us to

move into the open markets in a rapid way without really distracting the core business from its mission of continuing to drive growth. for us, the spac was perfect >> mark, we'll be watching appreciate you taking time thanks >> thank you so much thank you. >> you're welcome. keep your eye on the cruise names today. goldman upgrades norwegian to buy from neutral capacity growth, low leverage cited compared to peers. stock is up 7% we're back in a minute is now a health and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. 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.

how big tech is making moves in e-commerce and posing a threat to tradition retail check out our conversation on trading nation.cnbc.com.

while the federal reserve believes disruptions will be

temporary. the situation is worsening and there's no end in sight for what appears to be several months steve liesman has more on what's an important developing story. >> yeah. there's a macro and micro part to this. soaring prices for shipping containers in the months ahead raise questions about just how temporary global supply disruption is and the attached price hikes will be. the executive editor at the journal of commerce tells me the volumes have been getting so strong it's like christmas every month. and it's just going to get wackier. good luck, he said, finding a container in may the port of los angeles has handled 800,000 teus, those are 20 foot equivalent units in nine consecutive months nine months in a row that didn't happen during a single month in 2019 it's not that the ports aren't working. there are some covid-related issues the real problem is the global

supply chain is essentially overwhelmed. it's pointed out the global trade volumes have surpassed the prepandemic level. he has doubts the cost increase is going away any time soon. he says the bottle neck pressures are going to be significant enough to dominate that will increase pricing powers for manufacturers broadly. a discussion on supply disruptions has now become a regular feature as you guys now and most company earnings and by the way in cnbc executive interviews the price increases are already filtering down to the consumer level. if these issues linger, the only way to deal with them, of course, is building out ports and shipping capacity. that takes years the problem could be around for longer than just being a temporary problemen. back to you. steve, really quick. i know on the 7th of this month the national retail federation said congestion at ports was abating as some of the new terminals adjusted to normal, but it would probably still go through mid to late summer does that fit with what you're

hearing broadly? >> not really. i mean, what i've been reading, carl, is that prices are still high capacity is still difficult to find in addition, that it is filtered to inland ports as well like chicago. so i'm not hearing that the problem is abating i'm hearing there's still major issues out there and are going to linger for a while. >> i love that you brought up teus on our air, steve >> i knew you would love it, morgan >> all right anyway, key thing for invesers to watch, by the way but there's the port piece of this there's also the air piece of this which i realize has more to do with some of the higher value. a lot of times more tech related, for example products as well when you don't see as many passenger planes making international flights, cargo sits in the belly of those planes i have to think that's part of the problem as well.

that some of that -- some of those goods are probably making their way onto ships and the like as well >> well, that's right, morgan. i think the first instance, it depends on the product and what's promised and the speed it's needed with you end up using that capacity when it's available in the belly of the planes, the commercial planes, the passenger planes they're not there. they're not flying that's not there and again, that price is being bid up as the premium as well. it doesn't -- there's plenty of space for that in the ships because those are usually small items. but the point is that you can't, if you need to necessarily, turn to that quick response or quick solution to a problem because the planes aren't flying >> right and steve, you haven't mentioned the global chip shortage which also contributes just overall to a lack of supply at this point and -- it's not just automobiles. we're talking a broader array of

products that are suffering at this point >> you imagine, david, even 10 or 15 years ago? i think 15 years ago somebody saying auto production is halted because of a chip shortage i think it's a well documented story. i was trying to figure out is all this happening because you know, the cranes are idle, the workers aren't at the ports, or whether or not it's just a matter of we've got to flip switches on? but that's not the case. the switches are on. the cranes are working the workersers are at the ports and working hard the volume being overwhelmed >> steve, quickly becoming the major story to cover in any industry or company. we appreciate it as always that's our steve liesman watching the markets here. just off of session highs. coming up, a big ipo to watch with uipath making the debut we'll talk to the ceo in the next hour. in the meantime, squawk on the street is coming right back.

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, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference because we see value in doing good. for more information, visit calvert.com/earthday.

and that ending was so intense. i know, i didn't even see it coming.n, are you gonna watch? eventually! you know the drill. (humming) never fear, girl-who-has-yet-to-watch-her- friends-favorite-shows -and-films-of-the-year, it's time to celebrate the biggest week in television. now you can see these shows. and their unforgettable moments, for free. so you can finally talk about them with your friends. get ready for watchathon week, free starting april 27th. download the xfinity stream app to get ready to watch. revil. welcome back to "squawk on the street." i'm dominic chu. stocks are near their highs of the session with the s&p 500 up roughly one third of 1%.

the communications services sector, a notable laggard thanks to the drop in netflix shares. on the other hand the material sector behind the year up 1.5% closing in on a fresh record high of its own. within that group special of the specialty chemical products are leading the way higher including linda group, liondell and dow ink. construction like martin marietta and paint coating supplier p p&g watch those shares helping to drive some of the real strength near record highs for the material sector. i'll send things back to you. >> after the break don't miss nasa's acting administrator ahead of friday's acspex launch. we're back in two minutes.

what happens when we welcome change? we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change. did you know that petco, is now a health and wellness company? their groomers work wonders for my confidence.

i trust their vets, and i'm known to have trust issues. 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. esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. bike shop please hold. bike sales are booming. you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed

you get a shortlist of quality candidates from our resume database. claim your $75 credit when you post your first job at indeed.com/bike. stay restless with the icon that does the same. the rx crafted by lexus. lease the 2021 rx 350 for $439 a month for 36 months. experience amazing at your lexus dealer. . welcome back nasa spacex crew 2 mission is scheduled to launch -- was scheduled to launch tomorrow morning from the kennedy space center it's been pushed to friday morning. crew 2 will be the second operational crew mission to the international space station.

the dragon is scheduled to dock at the space station saturday morning. joining us with more on this launch is nasa's acting administer steve jurczyk >> good morning. thanks for having me. >> why did the launch move to friday >> yeah. the launch moved to friday because of poor weather, down range over the flight path as the dragon and the falcon fly over the atlantic ocean. that's for crew escape we need low wind and calm seas in case we need to do a crew escape so the crew can successfully land in the ocean and be recovered. >> so this is the third crew mission by spacex for nasa in less than year that's a big feat unto itself. there's still nothing routine about this you got the falcon 9 rocket that flew to space one time before with crew 1 last fall. the dragon capsule endeavor carried the first astronauts for spacex in that demo flight last

may. why is nasa embracing reusability when it comes to these human missions and how does that change the safety protocols? >> yeah, so, you know, this is a different model for us we're not purchasing, operating and owning the systems, right, the spacecraft and the rocket. we're buying services. so we don't -- we tell spacex and the what and not necessarily the how, so spacex proposed to us to reply the spacecraft from demo 1 and the booster from -- sorry from demo 2 and booster from crew 1 and then we work with them to figure out what are the reviews and refurbishment and reviews we would need to do on the spacecraft and the launch vehicle. it's a credit to the spacex/nasa team and how they work together as an integrated team to do those modifications and refurbishment of the vehicles and do these extensive engineering reviews, system by

system, to basically go through the -- get through the certification of flight readiness for the crew 2 mission. >> one of my favorite pieces of the story is megan mcarthur, one of the astronauts, is going to be riding in the same capsule her husband bob behnken flew to the iss in last year shifting gears when it comes to commercial crew broadly, boeing is part of the program we got some guidance in terms of when it's going to rae test its capsule starliner, that's looking like it may not happen until august or september. what is the likelihood that we could actually see crude flights by boeing as well? >> great question. so we're finishing up the final review of the vehicle, both the starliner and the atlas 5, and that will be complete pretty soon, and then we're just trying to find the launch date on the range here at kennedy space

center and cape canaveral space force station. busy time down here in florida for launches, so, yeah, it's looking like august or maybe september and then we'll have to see how that orbital flight test 2 goes and the progress towards the commercial flight to determine the earliest launch date for what we call cft 1 the crude flight test 1, so hard to say when that's going to be right now until we gets the data from the from oft 2 and analyze it and examine the progress and make sure we're safe to fly. >> okay. i mean it's been such a big week for nasa in general. i want to shift gears to human landing system contract award that happened last friday. certainly surprised a number of people the fact that you down selected to just one spacex for that lunar lander competition. how much of this is a reflection of current budget constraints versus the fact that you do have this track record now of human space flight with spacex >> yeah.

so it's a factor of two things first, we independently evaluated the three proposals from spacex, blue origin and their team and dinetics. it was a matter of the proposal evaluation and how that came out as well as available funding and what we can anticipate as funding for human space flight and particularly for the human landing system we thought given the proposal evaluation and our assumptions, selecting one and that being spacex would be the best plan for nasa now, soon after, though, we want to go out to industry with a request for information broadly, all of industry who is interested, and see what we can do to keep them engaged between now and ordering the services contract for the next landing. we really want to maintain competition moving forward for the services contracts for the human landing system. >> we didn't even get to the ingenuity mars helicopter flight that happened this week.

we do hope you'll come back to talk about everything that is afoot at nasa. good luck with friday's launch thank you. steve jurczyk. >> thank you and -- >> quick programming note before we go tomorrow don't miss southwest airlines ceo gary kelly who will join us at 9:30 a.m. eastern the company will report earnings before the bell. that will do it for "squawk on the street." >> "techcheck" starts right now. ♪ good wednesday morning welcome to "techcheck. our new show about technology here on cnbc i'm deirdre bosa with carl quintanilla and jon fortt and julia boorstin here with us as well a big day for tech news. netflix shares plunging as the company's growth slows is this