dom look at some of the biggest gainers. >> retroactive, it's too late. >> that's what i mean. if it's not retroactive, yeah. >> you know what, either way, you're going to see a massive sell-off at the end of this year almost no matter what. i would think so. >> either way. >> all right >> "squawk on the street" is next have a great weekend ♪ i feel so close to you right now. ♪ so close to you ♪ good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are mixed. stock mace try to reclaim a little bit after the reports of capital gains taxes startled markets yesterday. plenty of earnings watch watching j&j's decision. and the road map begins with tax fear, and stocks are set for a muted open after concerns about a capital gains tax hike did fuel the sell-off. crypto crumble $200 billion has been wiped out

of the cryptocurrency market in a day. and close eye on shares of intel, moving a bit lower ahead of the open, with the chip showing a lighter than expected sales forecast despite raising the outlook from prior guidance. the tax discussion continues this morning, jim a lot of people were asking yesterday, what the market was doing selling off on news that was not only on biden's web site for most of last summer but written about by goldman six months ago. >> i was reading the kostin piece. very clairvoyant an october piece people realize he puts out a newsletter widely read on wall street i take cues from him it's a blip. you want to buy the blip as i said last night on "mad money," this does not affect the companies. not warren buffett i'm not warren buffett, i never will be. can't pretend. but the companies are what we

need to worry about and companies are not impacted by a a raise in capital gains for 0.3% of the people. >> no they're not. they're more focused on raising the corporate tax to 28% >> that does impact. >> and paying for the infrastructure plan that has been put forward but when it comes to capital gains, that's not the issue. the issue becomes, does it in some way put the brakes on people's willingness to invest overall, jim. >> well, look, i mean what are they going to do with it i'm not saying it's devastating. because it's never been this high, but i just think that we have to say, this isn't going to fit. >> we got to remember this is about the house ways and means committee. richard neil who runs it and that is where a lot of the debate will take place there is not an expectation that you will get much support on the republican side but that's not where the fight will be, it will be amongst the more progressive

democrats and more moderate democrats and i'm hearing josh gothimer this morning on "squawk box," for example somebody who is in favor of repealing the cap-on s.a.l.t. deduction for example. so there's going to be a lot of different viewpoints on this from the democratic side, which will get all mixed in and we'll see if we end up anything that moves substantially higher or whether there's some offsets as well in terms of at least. so high tax states looking for repeal of that s.a.l.t. tax. >> and carl, having met the president a couple of times, he's not someone who pays close attention to the stock market. he also is someone who might really, you know, candidly, he tells you, never really made a lot of money now, as president, it doesn't matter whether he made money in the stock market or not. but the affinity for the stock market does matter the previous president, he had more than just an affinity, carl he graded himself. that is not going to happen

here it's funny because he would be getting an "a," but i just think what matters here is that someone, our viewers are talking about socking the rich and what i think is incredible and this is something when i was with larry kudlow, this is most felt by people who think they're going to be millionaires those are the people who hate this there was an excellent article in the "the wall street journal" today about a couple of guys playing on robinhood who got wiped out. but they think they're potential millionaires everybody on wall street bets is a potential millionaire. and this is true hardship for them, carl because they are aspirational. and that's what i'm focused on those are the people who are furious about this not the people, the 0.3 who just accept the fact that there's more tax, so that's where i'm focused on, the people who want to be millionaires >> yeah, yeah, jim's referring to the percentage of americans who do have adjusted gross income of a million plus, and capital gains or losses, as of

2018, that number was 0.3 of 1%, it works out to fewer than about a half a million americans, or at least half a million tax filings, certainly, jim. it brings to mind two things, one is goldman, for everything you just said, agrees that we're going to end up with a number somewhere in the high 20s, low 30s. but more broadly, jim, you got peak economic growth, peak positioning, fears about taxes, obvious concerns about inflation, and the bank of canada is now officially the first to taper so is selling for real this time >> i do think there will be, if you read the kimberly clark release today, there is not a line that isn't just about inflation. i mean it just doesn't see, it doesn't seem as temporary as the fed chief wants it to be in the meantime, there are, we talked about the airlines, they're saying things are better and david, i know this is going to sound a little contrary to

what the stock market is doing this morning, but i think american express, the cadence there shows you, look out, spending is coming back, and coming back big. so i don't know whether you need additional stimulus right now, i think you need stimulus for the people who are unemployed but not for everyone. >> shares of amex looking down this morning. >> what about the prospect there, business spending is still important for them as well, we all know about it, it's at zero. but who is taking out their corporate card in the last year? >> first of all, the millennials, it was tremendous uptick really amazing, frankly. >> amongst their card members. >> yes and they had a big increase in e-commerce i thought it would come at the expense of regular spending. it didn't. regular spend has held up and most importantly, david, travel among people who have been pent-up, restaurants, they are expecting very big number, q3, and q4, david, business travel.

>> starting to come back >> yes now, everyone does mention the banks. but i think it's the softwares and the consultants. >> that's what i wonder more i mean the bankers are, they're just going to start getting on planes again to some extent and if you see your competitor do it, you're going to do it and as long as you're invited by the client and you can get in the building and required to get in the building and usually it's offlimits to outsiders >> hopefully that will soon change. >> hopefully that will soon change. >> but you're saying it's not just that, it's what, in terms of, i mean beyond bankers, it's software, that i wonder more, the salesforces, those kinds of - >> that's who has to go. >> not salesforce, the company, but the salesforce of these companies. >> i can't believe how well they're doing given that it is just so hard to sell something through zoom >> a very complicated, and they're doing it. >> they are doing it.

>> so why get back on the plane if you're succeeding in doing it and you're - >> you're seeing other guys get back on the plane. >> margin. >> i know. i know i keep thinking that the numbers are all inflated in corporate america, because there's, the travel is down so low. >> think about those companies, they have conferences and meetings and sales people. >> and they do very well with it. >> yes. >> but salesforce had one in l.a. yesterday two days ago where they said they're having conferences, they're doing presentations around the world >> in person. >> in person presentations but stage presentations. and you know, mark thinks it's going to help. one of the things that i think is so significant with american express, the paydown of debt in this country, i think if you go back ten years, people thought we were profligate and we're the worst gamblers and spend beyond our means, boy is that ever over now, carl. the paydown of american express

is so significant, it hurt their earnings. >> that's "we" as a corporate america, not america america. >> america america. >> not the federal government. >> no, no, that's not, they're as profligate as ever. regular americans. >> got it. >> regular americans >> yeah, no, i think it was jpmorgan earlier in the week said, jim, we think there is a lot of excessive savings at the household level and even if we're wrong, if they used some of that money already to pay down debt, or buy a home, or get more equity out of their home, that's going to fuel some of the strength that we saw in retail sales in the last few days so there is that hope that the balance sheet looks better >> the balance sheet looks better i think that the home depots and lowe's, remember, these are the critical weekends, beginning this weekend, critical, it's their christmas, and i think they're going to be jammed i think people are going to go out, i think they're going to garden and gardening took off last year, it was amazing, the

gardening site went from zero to 60 in three weeks basically. but now lowe's and home depot. would someone please split a stock periodically >> that's funny, you think of prices. >> 180 the average person doesn't want to buy one share but they would -- that's for the big mutual funds that didn't want to pay, you know, if you made the stock 32, they got to pay more commission. >> right right. but the individuals, they always say, the individual can buy fractional shares. >> i want to come back to inflation for a moment. >> kimberly? >> the commodity numbers, yesterday, it's pretty staggering when you look at the year over year increases in so many commodities, jim. and then we've had a series of ceos that have come on, typically for the lower end paying job, restaurant workers and the like but who said they simply cannot find workers period. but jay powell and the fed don't seem particularly concerned.

at least they're going to hold the line. >> they're hoping that lumber is an aberration. yesterday, we had that amazing conversation with jim, from dow, across the board inflation every single one >> 14% sequentially. that's quarterly quarterly. >> poly and ethyl went crazy. >> you had gelsinger on last night talking about the chip shortage it could go on for quite a while. >> it is so meaningful. >> we will talk about that more in the next block of our show. but i just, i don't know, i wonder how that fits into the view of the overall market and to what we expect is going to be a continued pace of increased spending by americans. >> well, why haven't companies stepped up look, the copper companies are expanding, and going to meet demand i don't know, i'm talking to cleveland clips, they have to expand, nucor has to expand, if people aren't liking that

quarter, i think that is a big mistake, i think the quarter was very good. but david, companies have to increase supply and i think that's what jay powell is betting, they will look at the prices, look at micron, a good one, micron stock, why is micron going down people are saying that all of these semiconductor capital equipment companies have increased d-ram capacity so that's what jay powell is betting on he's looking at the head and shoulders there and betting, no, he is betting that micron, a little joke, he is betting that companies like micron will have so much supply, and demand will dry, and that stock is going to be emblematic of what's happening. i don't think it's right i think micron is going to do well but the stock is telling me i'm wrong. pcs, carl, pcs may be peaking right now. >> yup. >> right now. >> jim, we could talk a lot about the cost of corn or soybeans, or used cars up 52, or

existing homes up 17, but with rent, in this country, in a freefall, and obviously wages not doing a whole lot if you look at atlanta fed, it's going to be difficult to see some of that show up in the macro inflation data. >> i agree now chipotle call, a terrific discussion about minimum wage and they said they could do it no problem but they can raise prices a little bit, 2, 3%, but carl, minimum wage, they're not giving them, right now they're not just saying listen, we will give minimum wage, the only company that is engaged in pay, is costco, the greatest retailer of all time and counter-intuitive to people but people are not being paid more. i know we said that we can't find people, but they're not getting paid more. >> right which goes back to our conversation about the tax regime and the fact that the wealthy have gotten wealthier as a result of significant gains in the stock market and their investments and so the question becomes how do you narrow that

gap, perhaps by raising cap gains. >> can we do what reagan did, and make the people from the bottom wealthy instead of making the top poor. >> they can really get poorer? >> i'm not lenin >> yeah. if you're a resident of the state of new york, you might as well be. >> you can cross the river now, and go to new jersey, can you believe it >> that's not going to help you either you got to go farther away. >> let's go with the show to florida? >> and what's happening it to it all? another home another house? how many when's enough? >> i like every house that i own. just like i like my kids >> guys, we will get to intel as david said and hear what pat gelsinger told jim last night on "mad money." tons of earnings to get to including snap and intel we covered a little bit of it. but more

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which shows will you be getting into tonight? how about all of 'em. netflix. cuz xfinity gets you really into your shows. when someone burns for someone who does not feel the same. oh, daphne. let's switch. from live tv to sports on the go. felix at the finish! you can even watch your dvr from anywhere. okay, that's just showing off. you get all of this with x1. so go on, get really into your shows. you need a breath mint. xfinity. it's a way better way to watch. story this morning reported last night, quarterly beat, although a lot of this was preannounced, data center down 20, last night on "mad money," pat gelsinger did talk to jim about the chip shortage. >> this is critical. it's critical for the industry, for our nation, you know, for

the world. we need a more balanced supply chain. and what's happened over the last 25 years, you go back 25 years, u.s. manufactured 37% of the semiconductors of the world. today, that number is down to 12 for something that is underlying every aspect of humanity, everything is going more digital, and everything that's digital runs on semiconductors this is critical the world needs a more balanced supply chain across asia, u.s., and europe >> jim, echoing what chuck robbins said a couple of weeks ago, that at least short term, this problem is going to be with us for a while >> and yes, i think while pat wants it very much, to be solved, if you take a look at where the semiconductor capital equipment, where the actual equipment is going, only 3% on average is going to the united states mostly going to korea. and mostly going to taiwan so that number that pat quoted is going down. it will be under, it will be single digit in really in just

two years if something isn't done pat is leading this charge if intel wants to build foundries, i have to tell you, it's expensive and the reason why we got to this point is it's cheaper to go use fabs in south korea, and in taiwan, and that's what i tried to get pat on that, and once you open, it's fine, but what matters is that your big cap ex budget is, david, you spend a lot of money on foundry, it is a lot easier to send a check to korea and that's what we did to taiwan. and you know the chinese don't want taiwan to be in our orb. >> no. well, it's a lot closer to them. >> yes >> i wonder about the stock itself, jim. and i give mr. gelsinger credit for coming on with you because you have not been particularly enthusiastic about the prospects for intel near term. you haven't been overly negative, but you have certainly favored amd. >> yes. >> and nvidia. for any of the viewers who would ask you. did he change your mind at all >> first, pat, i have always had

a great relationship with pat when he was at vm ware, the goodwill comes from vm ware and michael dell, vm ware, a big owner, but here's what i, and i tried to get this in, lisa su has a tremendous plan, she is amd for the data center, now you heard that pat said that the data center was down 20, and he's saying that they're not buying, basically, even though he has a good relationship, now there were a series of speeches on analyst day that lisa su held, where amazon and google both said they're flat out running, and it's been flat out for amd, so it may be 20% down for intel, but amd can't produce enough chip, so i think that pat has the wrong chips, they missed a cycle, lisa su has this, these are seven nanometer to five and lisa is ahead and as much as pat wants to be able to say there is a glut, there's a glut on the

wrong chip so to speak, so i'm believer as much as ever in what lisa su is doing but i like pat's spirit it's just that he inherited a bad hand he got that, i don't know if you do rummy cube, david, but it is a bad hand >> i've played it a couple of times. >> how do you know that? >> we are obsessed, and starting to take up way too much of our weekends >> i would mif called me last night. she -- my wife called me last night and said don't bother her, she was close in rummy cube. how did it happen? >> how about rummy cube. no, uno. please, rummy cube. >> we'll get to mattel and some of those numbers when we get back after a break don't go anywhere.

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minutes until we get started with trading to end the week let's go to the wall, jim. what's your category >> boston beer. >> it's american beers for, and then you have to say no, you have to disagree with the jeopardy strategy. why? >> why >> because boston beer is truly t-r-u-l-y, the fastest growth, corona is moving in, and i talked to james quincey from coca-cola, topo chico, 20% share in two weeks in texas and for this market, my money is still on truly and boston beer, which

is, david, this is a $15 billion company. you only see these companies these days, i thought there was a $2 billion company >> the market cap obviously helped with a 200% rise in the stock in the last year talk about a split, jim. >> i know. i'm blown away, a lot of people thought there were some shorts in the name, a lot of people thought that truly hadn't peaked because you have real competitors now. constellation. holy cow corona but truly is entrenched. and i'm so impressed i really am. they've done a great job. >> got it. >> by the way i want to throw in, i thought stankey did a great job. >> we talked about it. >> at&t ended the day up >> i would just throw that in. >> yes. >> all right, coming back for the double jeopardy round, i isni bl,ftpengel aer th

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get the food you love with perks from- - [crowd] grubhub. bitcoin this morning, hit a low of 47.5, that's the lowest since

march 6th, jim, obviously concerns, i guess some are pointing to the tax discussion from yesterday, but it's a couple hundred dread billion wiped out in 24 hours and down 19% for the week. >> i see people say right now, it is still recognized as a currency that can't be the case i mean one of the things that i don't like about the way president biden leaked this is that i think, he may just say, through some media organization, i hope it's ours, well, you know what, bitcoin is a, it's a stock, it's an asset, and we're going to, next year we're going to tax it and i think that's why a lot of people are scrambling and i don't think they will do retroactive with bitcoin, they can do retroactive with stocks but david, i generally believe, that the president, there's no way that he won't find a source of revenue here and make it a capital gain. >> right we expect to get to some level. >> right. >> probably not in the 40s. >> right now it is a paradise for people. >> it is very low. it has been for quite some time.

and the great wealth has been accumulated by those who already have a lot of investments to begin with. >> don't you feel like biden doesn't like it? do you feel like that? did you feel that obama didn't >> i don't know that obama didn't like it not as much. >> yeah. interesting. >> yeah. >> carl? >> you know, jim, as we watch the opening bell here, of course, this morning, the nyse and the nasdaq, i did want to start you with, and something we were talking about during the break which is not stocks but actually bonds because we had a brief conversation of course about inflation. it continues to be a key conversation in the ongoing debates about the market and yet, we look at the 10-year, and i mean 1.7 whatever may be our high, right? >> the 10-year is saying, our discussion previous, about everything from pulp to all grades of plastic, to lumber, to

copper, all that is wrong. the bonds are saying that's all temporary and then there are people who are saying to me, jim, don't be foolish, all of our rates are so high that all of the money is coming from overseas carl, the debate about the bonds is what is making people feel right now that jay powell is right. the yields fell enough that people feel he has the inside track on something i didn't like to bet against jay powell i did the first year when i thought he was a rookie. and i'm afraid, this sounds silly, but i happen to respect him from before he had this job, and was harsh about those, about the comments he made about maybe we need a bunch of rate hikes but i think he's so matured to this job, i don't want bet against him and the bonds are not betting against him, carl. they're betting with him. >> jim, it sort of brings to mind jpmorgan note from this morning, their belief is that as the global reopening gets confirmed around the world, we expect yields to retrace higher,

and jim, they say, easy equity gains for the broad market are likely behind us, our bullish conviction is now lower, and sort of gets to the conversation we were having yesterday about the degree to which s&p enters a period of churn, or consolidation here >> i think that's perfectly reasonable i'm kind inform that camp. i'm kind of in that camp you can't keep blowing it away the thing that is positive, i have a stock of papers on the desk here and these are all earnings, and research reports, and i've got two negative, one was a critical piece by morgan stanley, i disagree with, about harley-davidson, saying enough is enough, i don't think that that's particularly good work, and the other was kimberly clark. the actual honeywell number, it is not bad at all. steve had a good analysis. and i would say i would buy american express with both hands. union pacific did not have a good number but there's some good excuses for why it could be okay analysts coming out. and i look at companies like snap, okay, that honeywell is a

buy there, and look at a company like snap, when they reported, their snap was down four bucks instantly, down four buck, it's now a nine point swing snap, the growth there is unfathombly great. you're talking about growth north of 60. so i say 60%, go find something that's working or if you want to do it, go buy a honeywell or an american express which are on sale today, but will be, and probably be on sale monday, those people are going to be looking at these big name, big dow name, and say who needs those, but those are discounts and buys, because they're going to get better in the second, in the third quarter, but carl, i see everything else is fabulous, i mean i've got, i did, what am i looking at, that i do every morning, david i do that every morning, i look at it. >> you do look at it. >> i send it to you, unlike the olive oil that i make. >> i know. >>dy 21 stocks in three -- i did

21 stocks three were negative and 18 were pov. so you might think that selling whatever, but boy you will be selling a lot of companies that are doing really well and the two that are down the most today, the most fun to buy, honeywell and american express he's got this thing down you want to bet against travel well, then go sell american express right here, carl >> meanwhile, carl, snap is $100 billion, almost a $100 billion market value really pretty amazing. >> that is amazing. >> yes and as jim said, revenue up 66 rup 20-plus. what a story you know, jim, the other story that is challenged, that we're entering a period of margin compression, our producer has kept a list of companies that have posted increases in margin year on year, philip morris, whirlpool, chipotle, mattel, horton, dow, pepsi and procter

>> what's interesting, procter, they had categories that they didn't get to deleverage and i was surprised, i thought they would have, and one of the things that chipotle was, well, what they talked about is they could put through any price increase that they wanted to avocado is the only one they're really worried about right know. but the margins are extraordinary there. the sales weren't up a lot but the costs stayed the same. procter is a little different. but procter did a good job kimberly, no kimberly not so good and we all start thinking that kimberly is, it diversified enough david, in the end, they are too paper-oriented too service oriented they really have a bad hand right now, kimberly. and i don't want to own that stock. >> okay. >> i know. well, apparently, there are a number of people who agree with you. >> but i disagree with what the market is saying about honeywell and american express american express is really good

here. >> interesting to listen to you when you're negative open p & g, or colgate >> that will be a dice roll. international markets, gotten a little softer. i'm not sure i want to do that i did not, particularly, i did not care for the report. >> you didn't? >> there will be better fish in the pond i know people don't want to bet against clorox, in the consumer package group. >> here's a look at colgate. we don't talk thatoften about that company >> you know why? >> because the company doesn't talk i've been after them for years to have to come on but pepsico had the best in this group. they've been up and that stock is creeping up and i like the way it looks. >> pepsico, i don't think, i mean broadly speaking, but by the way, you had nestle on as well. >> 7.7% organic growth do you remember there was an activist there at one point. >> mr. loew b was his name.

>> and didn't get rid of the l'oreal stake, did they? >> it is really a coffee company. >> but they did monetize that, the way that the activist was hoping they might. >> what they've really done is, they've done pretty much the impossible, they have boosted sales, and spent a huge amount of money on sustainability that's what they've done carl, they care more about talking about sustainability than the actual numbers. they have gotten rid of a lot of brands that are not good, candy brands and a lot of plastic brands i think that's fantastic they are really brutal about this >> nestle, yes >> tim cook has tweeted a lot about it this week i saw walmart is now putting climate in some of their risk factors in their 8 and 10-ks, pretty interesting evolution of the corporate commentary jim, talking about companies that have sort of reset their overall cost structure, which brings us right to what mattel told you last night. take a listen to this.

>> we used to think we're a toy manufacturing company. and we're now becoming a high performing ip-driven toy company. the toys are a lot cleaner now we literally reduced the work force by 35% and in the process grew revenue, for three quarters in a row now. so it's a different company. >> 35%, jim. work force reduction. >> look, he came on, what, about 18 months ago, the stock was at 8, and it was 15, 12, 11, he said i want to come on, got to 8, he came on and by the way, he is cleaning up the balance sheet, it's 7 to 1 leverage, but here is what is interesting to him. barbie, the barbie numbers are extraordinary. and first you think kidnapped, some sort of nostalgia no, he send mese a maya angelou barbie he is so in singh with what i call the real america, some say the new america and i love that,

carl, he is making barbie from iconic figures, who children need to know, and they're going to be collected, it's remarkable, and the thing is, there is only one negative, carl, and that's that ken is so close to medicare. ken turns 60 >> you can identify with that. do you have any advice for him >> well, aarp, take over the insurance. no, i don't have advice for him. >> you want to tell him what he's in for, for the next six years. >> pain. >> you know, look, this company had been failing and failing and failing and barbie is number one and uno, turned around american girl, a very troubled franchise, and i think he is only getting started here there were people who were telling him he should have raised the guide more but obviously the market loves it up 10%. david, mattel is some old names

that he has infused new blood in >> talking i.p right. that's what they like to talk. intellectual property. >> remember, he's from the entertainment business. >> that's the way they talk in the entertainment business it's their ip. what's your i.p. i've got no i.p. >> what do you have for nonfungible tokens >> i was working on that i was thinking some of my most famous notes, when i broke worldcom. >> maybe that would be nft but i think this place would claim ownership of it. so i don't know. >> i will tell the truth about nft, carl, if you own some, sell it. >> if you own some, sell it. >> and try to get a bid. >> i would assume -- >> try to get a bid. >> i would assume all of the cryptos are coming down with bitcoin. >> not just van gogh. >> how is your dogecoin doing? >> two-way market. right here. >> i have to tell you, carl --

>> the most wore some part of this entire market is nft, doge, that's fantasy, you got to deal with some reality here, and i just think that those, the nft, i mean there's people, the prices are being set by people, and i'm always suspicious when people are actually bidding things up in order to set a price. you better have a lot of money if you're going to set the prices and what do you get? if i bought that "time" magazine, what do i get? i don't get the commercial ones. >> you get the prospect that somebody else is going to come along and pay you more for it down the road. >> there is always a fool who wants to. >> david, billions you could make billions, david, in nft >> yes >> billions. it was millions, wasn't it >> you know, carl, i wanted to put that out, because there's a lot of people who come on and talk very seriously about it and

you know, and i got to close my eyes to see, because they have no clothes >> bitcoin >> we are definitely hearing from a lot of the seller, jim, we're hearing from a lot of sellers, we're not hearing a lot from the buyers, yet and to your point it's highly illiquid and we have yet to talk to anybody who has bought one and sold it and how easy it is to turn it around. >> i bid 20,000 for a cover. >> that guy winkleman, he didn't know. >> and i want to get you on a more liquid name, tesla, it's been quite a week, you have the senators write a letter over safety concerns, and you have the controversy in china, and adam jonas yesterday saying the market needs to understand the possibility that the china market overall morph into a utility run regulated by the state and he did take it up to 900 because he thinks the deliveries are good. >> if you look at my email, i don't know if people get my email, there is a huge percentage, and also my column,

with twitter, please don't say anything negative on te could you please say nice things about tesla? what is it, my daughter, please say nice things. what's that about? how about earnings and look, i'm a huge believer in tesla, but i don't think the let's all hold hands. >> you're a believer overall but you look at the market value at $700 billion and understand why there are at least two sides of the argument >> well, i was coming back and forth with this, unbelievable, about the time it took for the guards to try to get that woman off the roof of the tesla. because i felt that the, i felt that the communist party made the, had those people go, well, i'd say, not at warp speed, to get her off.

>> all right you need to give the context of this story for people who don't understand. >> they were showing a new tesla, carl, at a festival, and a protester got on the top of it, and i felt that in america, that protester would have been pulled down immediately, but i found that it was an ongoing, it was a long, it was a very long clip, and that woman made her point, and the party didn't stop it the party controls everything. >> yeah, that was your point yesterday, that they might have given her a long leash with a statement that was obviously seen around the world. fascinating. very hard to read tea leaves in china but that one was definitely interesting guys we will get eco data, a relatively light week for data overall but pmi composite and housing at the top of the hour let's get to rick santelli, a little bit early today hey, rick. >> you're never early, carl. we can talk markets and we'll we'll get to the pmi shortly a

long week of 10s gives us a lot of information down a bit on the day. a bit on the week. kind of hovering at the lower end of a range and where is that range? open the chart up to very early march, and you'll see, we haven't closed under 1.53-ish since early march. and that is an important technical area that traders are paying attention to. how do we know this? because yesterday and the day before, we are looking at the challenge of the 150s and it looked like yields are going to go down, we see a whole lot of buying coming in very aggressively all right, stop the presses. our april preliminary read on market, pmis on manufacturing, 60.6, 60.6, that's a new post-covid high. and if we look at 63.1, on service, that's also a post-covid high, and 62.2, on the composite, is also a post-covid high. so these are all very solid number, the preliminary, and they can change, my guess, is if they change, probably change for even higher numbers, down the

road, let's get back to the charts, so we look at the charts from may, early march, excuse me, and we haven't close 10-year note yields under 1.50, that's a key area and whether it occurs today or not, we have to know where we start to see yields dip below there, look for some follow-through foreign exchange, not friendly forthe dollar for weeks now. if you look at an early march chart of the dollar index, what should really jump out at you here is that we really have a deteriorating, quite aggressively from fairly lofty levels and it looks to me we're continually closing below levels that we haven't really seen since early march. and finally, where is all of that buying and foreign exchange going? going to the euro currency a two-week chart of the euros. looking pretty good. you might say look, the ecb yesterday, and knee-jerk reaction was down on the euro, and that makes sense because they're not going to taper, they

will keep adding stimulus in the equation, so why is that occurring? it is occurring because there is always a notion that they can succeed. throwing more money at the issue. trying to change the vaccination procedures and the market is being kind to the ultimate outcome. carl, jim, david, back to you. >> we will talk to you in a bit. rick santelli, thank you so much. a little bit of a quiet open at least you do have the dow down about 58, but the s&p holding 4143 we're back after a short break my retirement plan with voya keeps me moving forward... even after paying for this. love you, sweetheart they guide me with achievable steps that give me confidence. this is my granddaughter...she's cute like her grandpa. voya doesn't just help me get to retirement... ...they're with me all the way through it.

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market has been trying to avoid having the worst week in a couple months. here's a look at the lag forwards for the s&p week to date, including intel, netflix is in there, ual, american airlines and some others we'll keep an eye on that. 'rba ia nuwee ckn mite

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let's to stop trading with jim. >> we're looking at what some people are is thinking is a zero sum game there are a lot of people who say wait a second, we are we

writing off visu that's a big mistake except for the top. i personally think that when i hear that he says there's -- there's basically a glut of chips and she can't make them fast enough, there's a glut of the wrong chips. let's stop counting visu out she's on our show next week. my view is we'll hear good things anyway, that's it. >> for sure, jim >> look at that. >> do you think the most interesting war is intel amd, intel nvidia or can you rank that >> nvidia is a big challenger coming in. and wong is somebody everybody is scared about. he's brilliant the incumbent is at this point lisa sue intel has a big stay they'll say jim, don't say that,

we're bigger than they are it's true, but the incumbent in terms of who is buying stuff you care about, the amazons of the world, that's amd, and then intel, well, they've got a lot of money to spend, and they do have it. but they fell behind i don't want to bet against any of the companies but i want to lisa sue, and that's no fence to jensen jensen speech a couple weeks ago was brilliant. i read it several times. he's on a different plane. there's $7 billion on the planet and then jensen wong >> you said it it's lisa sue. when it's lisa sue versus him, you're taking lisa sue >> yes >> okay. >> right now >> you reserve the right to change your mind >> david, do you ever read twitter? i flip-flop more than every president. it's a fluid situation >> it is >> nvidia is -- they need an arm. >> and they're probably not going to get it. >> they're not going to get it nvidia, wow.

betting against jennen long-term is as bad as betting against lisa sue they're both geniuses. >> it's fascinating. >> great american corporate battle >> yeah. >> jim, how about tonight? >> okay. tonight this is a look at real america. we've got american electric power and new port make aikens, the largest distributor of power in this country. we find out whether this is good or bad and he's also on the board of the rock well hall of fame and leon runs nucor. we'll look at the real economy, not the nonfungible economy. i have nonfungible tokens i bought they're campbell's soup cans, the ones i believe that -- i bought them for 100,000.

i'd like to sell them to you for 120,000. >> let me check with the wife. i'll wire the money if judi says it's okay. we'll see you tonight. good weekend, jim. 6:00 p.m. eastern. > 'lget new homes in a minute ble 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.

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good friday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber and morgan brennan lots of earns attacks today. no covid highs up. pmis and new home sales. let's get to rick santelli >> we just popped over a million. keep in mind this is a march read february weather wasn't very favorable for building new home sales came in at 1,021,000. that's up from february. it was depleted because of the weather. we knew this was going to be a good number. housing completions just shy of 1.1 million. there's a lot of demand for new homes and to really dig down on how powerful this number is, let's head east to diana oleic

>> well, rick, this is really a great blowout number for march over a million as you said and actually, february's number was revised up another piece of good news is that prices were barely up year over year basically 1 %. and we've been seeing very high prices in the existing home market we've also been seeing slower sales in the existing home market clearly the builders are benefitting from this. now, one other thing is that mortgage rates started to rise in march, and these numbers are based on signed contracts. people out shopping during the month of march signing the deals. so given the fact that mortgage rates are rising, it's a good sign people are stepping up and signing the contracts. the question goes forward. will we see this continued gain in new home sales as we see the pullback in existing home sales over the a past couple months? it seems like people are in high demands for the homes. it's all going to be about prices if people can make it

affordable, i think we'll see good gains for the builders over the next coming months >> all right we'll keep an eye on it. thank you. we are 30 minutes from the trading session. here are the three big movers. intel under pressure despite beating estimates on the top and bottom lines a lighter than expected full year sales forecast. and the shares are down about 6.5 % right now. snap meantime, higher after reporting a break even quarter revenue and user growth both topping estimates. the company behind snap chat posting the first ever quarter of positive free cash flow as a public company those shares are up 5 %. lastly, mattel a record 47% sales growth for the latest quarter compared to a year ago revenue also beating forecasts on strong sales of toys like american girl dolls, barbie, hot wheel cars there's a lot of barbie inmy

house right now. >> i can imagine they've had a good run at mattel thanks, morgan let's get over to elon with a look at president biden's reported seeking to nearly double the capital gains tax for the wealthy. it caught a lot of investor's attention. well, that's right the news that president biden plans to raise taxes on the rich to pay for the second phase of his infrastructure plan not only rattled the markets. it also opened old wounds on capitol hill biden had long promised to undo many of the tax cuts that republicans put into place into 2017 including restoring a top tax rate of 39.6%. biden also pledged to tax capital gains a at the same rate for ordinary income. investors were spooked once he rolls out his american families plan next week coupled with an existing but separate tax of 3 .8 % on

investment income, that would bring the total tax rate on capital gains to 43.4 %. the tap republican in the house weighs and means committee called this move an economic blunder. >> the reason you tax capital gains is less is unlike just spending your money or putting aside for savings, this is ris riskier. the rewards to the american economy and your future are higher some analysts believe it will wind up closer to 28 %. so far democrats have been unified on this idea a spokesperson for the house ways and means chairman says he wants to make sure the wealthy are paying their fair share and said this is just the beginning of the dialogue. back over to you >> little doubt about that stay with us we want to get robert frank in the mix as well and talk about how investors should think about the debate we're about to have in this country. >> they are thinking about it.

studies show markets generally don't rise or fall based only on the capital gains tax rate, but a tax hike, especially a doubling of the top rate that biden is talking about could result in a large amount of selling in the short term. his proposal would be to raise the top gains rate from 23 .8% to 43.4% if you include the obama surtax that's the first time that capital is taxed higher than ordinary income. so who is most affected? well, it only applies to a very small slice of people with $1 million or more in income. that's about the top .3%, around a half million tax filers. but that group gets more than half of their income from capital gains and capital gains income can be very easily shifted. so the fax foundation says that on its own this capital gains rate hike would reduce government revenue by about $123 billion as investors sell before

the hike, but they hold on to the assets after the increase. the top 1% also owns more than half of individually held stocks so their soles as we got a taste of yesterday, can have an outsized impact on the market even though it's a very small group. now, the combined state and federal taxes would be a record in high tax states california, if you're a wealthy tech founder or executive and sell some stock, you would pay a combined rate of 56.7 %. in new jersey that's 54.1 %. and in new york city, the top combined tax rate on cap can tall gains would be 58.2%. i was looking at the composition of those half million taxpayers inspect about half of them are in four high tax states. new york, california, new jersey, and connecticut. that's why those very high rates and those high tax states would be relevant. so many of this group and it is a small group, would be paying

those rates. guys >> yeah. i mean, robert, we're focussed on the impact the markets or maybe lack of potentially lack of impact just looking back over history, but i mean, it's also important maybe more important arguably from an economic perspective when you talk about business creation, business investment other means of funding real estate something i know you cover closely as well. i guess what are you hearing from some of your sources in some of these other asset classes in some of the other industries >> yeah. it's such a great point. we look at this group and say well, it's only a small number of rich people affected and have a mental picture of the group being sort of billionaires but many of the people who are in that million plus group are only what they call one-time wonders or one-hit wonders it is people that got a one-time sale of a business they spent their life building, and then they sold let's say for 2 million. they would now have to pay that

capital gains rate so a lot of the people in that top group are not recurring high income earners they're people that have built a business or property or owned an expensive home that when they bought it in 1969 was not that expensive but now it is and now will pay the tax it's a pretty diverse group of people and would hit business creators and founders and people who own real estate in high income or high value areas >> robert, i want to follow up i had a question for elon as well if you're below $1 million in income tin that year i don't understand is it current income or included in other words, if you had the capital gain, is that -- explain this to me >> well, it's important question we haven't gotten real clarity on this from the biden administration elon can talk to this. but as it's written, if you have income of a million or more in that tax year, you pay a capital

gains rate on the capital gain of will be 43.4 %. so yes, it's not recurring every year it's in that tax year if you sell a business, that's when you pay it >> you're above the threshold. i wanted to make sure it wasn't specific to -- elon, what about the political side of this we heard from kevin brady during your piece but really, it's going to be within the democrats themselves who have to kind of get this together, isn't it given there is some division within the party itself about exactly what -- where they want to go on taxes >> yeah. and david, i think that your question really brings up a good point. a lot of the details here have sob ironed out sort of different tax foundations, tax analysts have modelled this in different ways and come up with different estimates of how much this is going to raise so i think the important thing to pay attention to here is that there are a number of different levers that lawmakers can pull it is possible that the top

income rate goes up to 39.6 %. but that the capital gains rate goes higher but maybe not quite that high. it's also possible that they look at what happened to the 3 .8 % obama care sur church it's likely to stay in place, but maybe it's a discussion as well these are all sort of moving parts that lawmakers are going to have to add together. the ultimate goal here is not just to make the tax code fairer, though obviously they will say that is an important goal they also have to pay for their spending plan. so the size of the spending plan, how much of it they want to offset and pay for, how much they're willing to add to the deficit will be important considerations in where the numbers finally land >> yeah. i realize there are a lot of moving parts this might not be an easy question to answer, but in terms of the priorities for president biden, i mean, you have this physical infrastructure. physical infrastructure plus package that was recently proposed with the american jobs plan now you have what's expected to be the social infrastructure

push for the coming american families plan proposal to which the capital gains tax rate increases would be tied to i mean, if -- maybe it's not either or. if he had to choose, what would the priority be? >> i think that the american jobs plan, the sort of physical infrastructure plus plan is an easier political sell. there are clear bipartisan benefits there there are things that both sides agree on even if they don't agree on how to pay for it the american family plan and some of the tax changes is going to be a harder political sell for him. >> guys, we're going to talk about this for a while and see what twists and turns it takes appreciate that, elon and robert by the way, check us out later this morning on tech check we'll talk to tim draper about this idea. tim, tweeting yesterday that it might kill the golden goose in his words. that's america and silicon valley also with provocative comments on bitcoin

we'll talk to him at 11:00 a.m. eastern time and let's get over to dom looking at the bitcoin volatility which is now below $50,000. >> below $50,000, but off the lows we've seen over the course of the past 24 hours or so and to one of robert frank's points here about the recurrence or nonrecurrence of income, for many crypto currency traders out there, they're seeing perhaps some of the one-time hits c one-hit wonders about the gains they've seen in crypto if you look at the crypto complexover all, a sampling of them bitcoin, we talked about the prices below 50,000. you can see athere yum tanking by 10% off the session lows down by a little bit litecoin, bitcoin at 785 the moves are fairly large with regard to all crypto currencies we're talking about. if you look at the chart, one of the reasons why we have seen this is because it is dramatic when you see what roughly has equated to a 24 % drop in the

overall price for the bitcoin tokens 49,000 at the last trade again, 63,300 was the high depending on what 34e9 rick you look at. 47,500 the lows in the latest move lower by the way, we also want to talk about some of the stocks involved many companies as we know, have taken physical bitcoin or other crypto currencies to the balance sheet. tesla, that's up about 1.5%. square is up fractionally. that's another company that has bitcoin on the balance sheet microstrategy, down about.66%. it gives you an idea there's a lot of jockeying and trying to figure out what possible capital gains tax hike could look like in the finalized form there's not a lot of clarity a lot of hedging right now not a bunch of wholesale selling. back over to you interesting. yeah as jpmorgan earlier in the week

said it's got to get back above 60,000 pretty soon or the momentum signals will collapse in jpm's view. we'll take a break the road map, jae clayton on more potential regulation for bitcoin. and spacex launching another group of astronauts for nasa early this morning we have all the details. and an exclusive with blair effron we'll talk about the return to office, the tax plan a lot more a big show ahead don't go anywhere.

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delays at u.s. ports have severely disrupted the global shipping industry. causing a massive shortage of containers that usually arrive empty in china ready to be loaded with goods destined to the u.s. we have more >> reporter: at this warehouse near the shanghai port, exports are piling up. nearly all the boxes are full of goods destined for american homes. normally chinese factories ship their goods directly to the port right away not these days >> nowadays we have the most difficult situation. >> this warehouse manager says

disruptions due to the pandemic and the bottle neck at the suez co-al have caused shortages of everyone ty containers on vessels returning from the united states. >> we don't have enough vessels coming back. no vessel comes back means no space. >> reporter: at the same time as the pandemic eases, demand for chinese goods surge. factories are forced to wait parking their goods at warehouses those containers would normally be off in one or two days. but it's been a week and they're still here and we were told that they haven't yet been scheduled to leave. average wait time for space on a container ship is now at three weeks. they fear the problem can run into next year >> the solution, it takes a lot of time. yeah it takes time. >> reporter: and time is money he says that these delays are costly for manufactures.

in his case alone, he said the factories are paying an additional $300 a box. >> wow that's a jump right there. great reporting. back to a conversation with the ceo of union pacific yesterday with the pricing that's going on at that railroad, surcharges and the fact that that's tied to the intermodal business which speaks to what's going on with all the containers right now maybe this is a really basic question, but why can't some of the factories or transportation companies just buy or order more containers >> well, it's just not that easy because they told me -- i asked the same question. they said even if you pay more money, it doesn't guarantee space for you. and also he said if you add more vessels, it doesn't necessarily mean the terminals are going to be able to be efficient and sort

out their issues and process a lot of the vet sells and containers his advice is you're a company that plans to be shipping to plan ahead he said think three weeks at least when you're putting in your orders and he said that's not only for companies but also that customers too just regular americans who are thinking about ordering something on amazon, for example, that you need to be patient. he said, because this is going to take time to sort things out. >> appreciate that from beijing. what an amazing story the global trade has become dow has gone positive. getting drag from three big names, intel, axp and honeywell. intel, boeing, amx, dow and nike leading the charge lower we're back in monta me

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6:00 a.m. eastern, spacex making history successfully launching a mission for nasa sending four more astronauts representing three countries. the mission using a commercial capsule and rocket that had already been to space. the astronauts traveling to the international space station aboard the same dragon capsule endeavor from last may that was a mission that at the time included mcarthur's husband. the falcon 9 rocket flew back in november the booster touching down today on a drone ship in the ocean spacex's 80th landing of an orbital class rocket the reusing was front and center as musk talked about the mission. >> now almost half a century

since humans were last on the moon it's too long. we need to get back there and have a permanent base on the moon i think like a big permanently occupied base on the moon, and then build a city on mars and a multi-planet species we don't want to be a single-planet species. >> commercial crew of which this mission this morning is a part of but also the lunar lander contract he was talking about that nasa awarded to the company last week and star ship in general, the capsule and rocket under development. up next for this mission, endeavor will dock with the iss early saturday morning to start a six-month stay the astronauts will be greeted by the crew one team it will be cramped until the team returns to earth next week. spacex has sent 10 astronauts to

orbit in the last 12 months. it's set to continue with two more perspective missions before the year is out. another for nasa and also the all-civilian inspiration four trip we've been covering closely here as well shares of publicly traded space plays that have nothing to do with this launch but nonetheless, trading higher in sympathy also tesla and this even as spacex remains privately held at we talked about this the other day, 74 billion valuation. >> thank you 74 billion multi-planet species i like that. yeah i think that's the first time i've heard that really >> this has been his vision this long-term vision, and this whole idea of reusable rockets, reusable capsules, that drives down the cost and that -- and that subsequent barrier of entry to space is key to that

longer-term vision and mission when you see something like sending astronauts for nasa into low earth orbit on hardware that has already flown to orbit before, i think that really speaks to how much we're starting to progress in that process. whether it's musk or by the way, folks like bezos and some of the others focussed on reasonability as well. >> the valuation of $74 billion. moving on here, after the break, my eluveitblxcsi wh air effron we're back in two minutes.

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here's your covid update at this hour. india's covid crisis is spiraling out of control today the country reports a record 2300 deaths over the past 24 hours and 330,000 confirmed new cases. the number of actual infections is thought to be much higher

because many people aren't being tested in new delhi and other areas in the northern and western parts of the country, hospitals are now turning away people with covid because they simply don't have any room. and oxygen is scarce the world health organization says it will do everything it can to help save lives in india it calls the situation a def kating reminder of what the virus can do a third state of emergency in tokyo and three areas in the western part of the country that runs from april 25th to may 11th it allows authorities to force businesses to limit hours or close entirely now, previous lockdowns weren't enforced so that could be a real shift there. carl, back to you. all right. contessa, thank you so much. futures this morning were a little bit uncertain, but the market has gone positive dow up 60. nasdaq is up 100 s&p up about six or so we're watching sectors financials up a full percent and the vix back below 18.

we'll keep our eye on this yes, we will speaking of financials, global deal making activity surged in the last quarter blare effron is joining us they advise on many of the deals. i want to get to a lot of things with you, but we'll start off on merger and acquisitions and leave spacs to the side and talk about strategically driven mergers and acquisitions what are you hearing from clients in terms of their willingness to engage and think about doing deals? >> the right question and you explained it the right way by leaving spacs off the table. you look at the first quarter, 25% of the volume was actually spac-related you take that out. what you saw in the first quarter was a durable and stable m&a market the same kind of market we've had the past six or seven years.

irrespective of underlying economic activity, and this is, frankly, symbolic of ceos. looking at m&a, still as a tool to increase capabilities obviously there's disruption in every business, every sector how do i get new capabilities to operate and take on those challenges you see a desire to get into new markets, new products, new geographies and if anything, i would say that covid has sped up the planning process for most companies quite rapidly. it was a three to five-year plan previously you've seen the business models accomplish certain goals in 18 months because of that, many companies really saying if i have to move more quickly, what kind of skills are required rather than necessarily building internally. that's been a driver you've seen it in evaluations also valuations were robust

14 times or so ebita a day look at the five-year average, closer to 11.5 or 12 also that tells you that investors are going to support and make decisions that they think will let them enhance growth over time >> what about the larger deals when a company is thinking about doing something that will attract our attention certainly and the imagination of many investors, whether it's transformative or large, are they given pause by still trying to sort of figure out the anti-trust approach from the biden administration >> i think that's a valid perspective. and i don't think it's just the regulatory part. clearly in the beginning of any administration, what we've seen is the first few quarters the market companies taking pause on doing acquisitions or moves that are considered very large. if you want to know a framework you're operating against and

know what it takes to get a deal from a signing to a closing. the time period. so clearly that is an important part of it, number one number two, i would say that when certain areas of the market overheat, like the spac market, it actually causes thoughtful companies to step back and say are we doing this at the right moment and -- or should we wait for things to stabilize in i think the best time for an m&a market is when you have big growth but not outsized growth. there's an easier way to figure out how to place an asset. >> given all that, and let's assume that spacs which have calmed down, let's assume that continues. what are your expectations for the next nine months or so or this year? more of the same >> i think more of the same. the market is a $4 trillion market sometimes lower. sometimes 5 trillion over a decade you're going to see the same

you have a tail wind of good groit. i think companies are focusing on 2022. imf thinks it will be close to 4% that's a good environment to think of m&a and a good environment in which to make transactions and say once i go to the transaction, the first in 18 months, i can count on a pretty good economic tail wind to help me achieve my goals. i think you're going to see a lot of the same. i don't think you're going to see what do we call a merger boom as opposed to a nice sturdy, steady business. >> i want to move on you have been a long-time supporter of democratic politics you were a notable financial services supporter of president biden. what's your reaction to this latest proposal in terms of significantly raising the capital gains rate do you think it's going to have a negative impact on business formation and activity overall >> david, i think you have to

step back and look at everything the administration is trying to do and say will that help growth we start with $1.9 trillion of relief earlier this year now you move to a 2 $.2 trillion infrastructure bill which i think most of the business community supports $600 billion in transportation grid upgrades, 50 million in summy conductors things we need to do, and frankly, things we haven't done since the icen haur administration in the 50s. you take that perspective and then say that if you can increase growth in gdp just 1 % a year for ten years, that's another $3 trillion of impact positive to the economy. get a program you must do. two, paying for it, i think the markets don't expect most of the programs to be paid for not just with the balance sheet of the federal government but with

taxes. i would actually not react to any particular tax proposal. sit back, wait for the whole package to come through and see where we end up. >> all right so you're not overly concerned, then, i guess? at some point with higher corporate tax rates and capital gains tax rates and higher tax rates on ordinary income, it's not going to have a negative impact overall >> i didn't say that i said step back and see how the overall tax package come together there's a 50/50 senate i think there's going to be negotiation. republicans came out yesterday request a $600 billion infrastructure package we have to assume the overall number when we're done in terms of infrastructure will be lower and in terms of the how to pay for it with taxes will be lower. >> you're at the office. i'm looking behind you i can't tell how many people are there with you >> i cleared them out. i didn't want them to be on --

no >> what about back to work are you surprised how few people are coming back to your offices or those of many of the companies you know well at this point given how many people have been vaccinated and are you at some point going to start to i don't know if the word is force but get more stern with those who choose not to show up? >> that's a two-part question. one is timing. and the end state of the office. timing, i'm confident that most of our colleagues want to be back in the office we hear that in direct conversation and surveys we're taking and frankly, for the younger population, they're coming back to new york in large numbers therefore, we would expect that through the summer we will be decreasing the populations and have protocols in place for health and safety. you mentioned vaccination. we think people will feel good about being here so you should assume that's going to happen. more importantly, what's the model going forward? for us, our business is

primarily an in-person business. we know our colleagues want to be here. we expect them to be here. why? you want to collaborate. you want to have formality and ideas and friendships. all the reasons you choose to go into business with a lot of colleagues around you we think holds true and on top of that, is mentoring you should assume that our business, and i talked to my peers and other if i weres they're in the same place, we'll all be back to the office in a primarily in-office setting, and i would be surprised if by the time the weather turns cold again, if we're not back in the office >> on new york itself, of course, kwen, the offices of which remain let's call it at 15% occupied at the present moment what about the health of the city itself? i know you have been active in that as well how concerned are you for a city where people have yet to fully

return to work and tax rates are going to be extremely high and where we still aren't even picking up the garbage on a regular basis? i mean, you know, do you concern yourself with that exodus that we hear so often about >> ek dus to me is an aggressive word frankly, not really healthy. the inflows of people to new york right now are exceedingly positive two, new york is always going to be a vibrant, energetic place that's going to attract people, particularly young people, from all over the country just in terms of june 20th 2020, new york is getting 3% of all graduates coming in now even though it's the highest by wide margins anywhere in the country. we just got $40 billion back into the city from the federal government and into the state. that will go a long way toward helping us and frankly, when the venues open up for the reasons in new york whether it's sports or museums or broadway, that is

going to be bringing people back there are 60 million visitors in the city before covid. 25% of them international. they're going to want the new york experience. so do i believe that new york gets to the other side of this of course i do now, that doesn't mean we don't have challenges from point a to point b. and do i get concerned, for example, about a tax rate in new york, particularly when we've gotten money from the federal government that may encourage certain people to not be here? of course i do but i'm counting on the fact that the amazon, google, facebook, who have put in thousands of jobs here really under the radar screen just in the past two years continue to happen and more than make up for some of the points you make. and by the way, we have a very good slate of mayor candidates the election is the end of june.

i expect we'll be pleased with where we end up. >> we'll see and as you point out, it's funny you said the election. the election is november, but the election that matters is the democratic primary when it comes to new york city and that's june blair, thank you for your time >> thanks so much. take care. as we head to break, look at the earnings movers with snap and intel moving in opposite directions intel is the worst performer in the dow and s&p. and later jay clayton on more potential regulation for bitcoin and more we have a lot to talk to him about. we'll be right bk. ayitusac ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪

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welcome back it's time for the etf spotlight. we're looking at the industrials, ticker xli. up double digits for the year. up slightly right now as well with boeing, union pacific and caterpillar adding to the group's strong start today in particular watch honeywell. reported a beat on both the top and bottom lines this morning. up sales earnings guidance for the year b sales and safety productivity markets, the ppe gear, surged 49%. and commercial building related sales returned to growth for the quarter as well. nonetheless, the stock is under pressure it's down 2 %. we'll be right back. stay with us 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?

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want to save hundreds on your wireless bill? with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing! and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at xfinitymobile.com/mysavings. $260 billion wiped out off the value of the crypto market in about 24 hours as bitcoin falls below 50 k joining us to talk about whether we'll get heightened scrutiny, jay clayton. >> nice to see you thanks for having me >> it seems like every headline this week has had that phrase,

heightened regulatory scrutiny it's being blamed for bitcoin's fall and the way in which spac issuances screeched to a halt. is that a legitimate boogieman >> let's talk about assets more generally.generally, bitcoin being the best known of the digital assets of course we're going to have more regulation that touches on digital assets let's go with the functions for digital assets we've got store value, method of payment and then we have facilitation of financial transactions starting at the very top all of those areas you need transparency you need to know any money laundering, any terrorist financing and to put a quote on it, taxation rules are being followed and that they're being followed around the globe. if you're having financial

transactions we've learned over time you need those to have a legitimate, well-functioning system that doesn't facilitate bad actors that is part of what is coming, regardless of the underlying digital asset activity then we can talk about different is pieces of regulation depending on if it's store value, payment mechanism or the like that's the threshold thing that is coming and needs to come. >> so the degree to which and the way in which that is communicated to investors and to traders, how do you see that happening? which agency necessarily leads on this? on what timeline is this going to be a q2 story or something this year >> well, i think this is an evolving story that's already started. we have dedicated professionals, i know we've had a transition in government but dedicated women and men at the treasury, the sec, that frankly around the world, who have been looking at

this issue for some time this is going to continue to come and it's going to continue to evolve. again, those fundamental issues need to be addressed to have a well-functioning system. i think anybody who is involved in this, any digital asset component, is -- believes in their hearts that you need to take care of that, take care of the transparency aspects of this then again, around the activities, so let's talk about store value, to have a store value you need to be connected to our financial system. if you're a retail customer that wants to get involved in the digital asset, are you comfortable with customers are you comfortable with the market in which it's trading is not being manipulated. those things are being examined as well. >> just to shift gears a little bit, jay, we've seen the fallout from the ar gees goss situation and now we have the sec going to review fund disclosure rules i wonder what you think

manifests from that? >> one of the jobs the sec, and again gary gensher super smart guy, our disclosure rules need to evolve as technology evolves and markets evolve we have what i would call an array of disclosure rules around institutions, there are disclosure rules telling other shareholders whether you've crossed certain thresholds on the company, we have disclosure rules with go to what i would call market integrity and this fall rules around slots that have been impending for a long time, they are going to go into effect, the dodd/frank rules will go into effect. the women and men at the sec will look at short sail disclosure and say, have they kept pace with market activities >> jay, it's david faber, another area they're looking at

is spacs, something that came up during your tenure as well the activity already has lessened considerably with the prospect of sec regulations whether it be on hold periods or prognostications and projections from the companies are they going down a road you foresaw as well during your tenure >> look, it's nice to see you again. we talked i think -- i can't remember whether it was september about the disclosure about the dilution of spaccing transactions, ensure investors understand the dynamics of that transaction, what it means for their investment and the alignment of interest with management and the sponsors and how long management and sponsors are committed to stay side by side with the investors coming in with these transactions a market practice perspective should evolve so people can get

their hands around those issues. >> jay, when it comes to let's say climate policy, the general take is that it matters less what the u.s. does if it flies in the face of global policy that's different i wonder if you think bitcoin policy faces that conundrum? where it has to be a coordinated effort given the global nature of the currency itself >> i do on digital assets. i believe that let's look at international payments and international value. regulators have done a good job, central bank regulators in particular, but the securities regulators and the like, at coordinating around what i talked about, transparency any money laundering, trying to prevent terrorist financing and also international tax policy. remember, bonds, we did a good job of getting ready of bonds

because they could basically function as a equation, whether domestically or internationally. >> yeah. jay, fascinating, evolving quickly, i love getting your insight and help thank you very much. >> thanks, guys. coming up on "techcheck," we'll continues the conversation with tim draper, crypto bull obviously that starts at the top of the hour. don't go anywhere. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. all the things, all around you

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dogecoin,. we want to show you this picture of twitter and we talked about it, the historic spacex mission that successfully launched this morning with former astronauts going to the international space station. you can see it right there in the distance to the right that falcon 9 rocket in the distance in d.c., which i think also speaks to the fact that this commercial crew program for nasa is this public/private partnership template that has estimated between spacex and the other company boeing that is involved in the projects has saved $20 billion to $30 billion in taxpayer money for us to be able to reattain the capability

to do human space flight it will continue to be a busy weekend on the space front elon musk, $100 million prize around carbon capture. >> we want to give it to exxonmobil they seem to be focused in leading on that, morgan. >> yeah. it's been a big week and a big weekend. it's my birthday that's going to do it for "squawk on the street. "techcheck" starts right now ♪ good friday morning. welcome to "techcheck. i'm deirdre bosa with jon fortt and carl quintanilla coming up on the show today, the capital gains tax debate, what it means for tech founding companies and the entire investment ecosystem that exists around tech and startups