shares of etsy, keybanc capital market downgrading, but they still like the long term story two red, one green i'll send things back to you. >>dom, you got to be careful, you never know thank you. anyway, it's 9:00 a.m. see you later. >> see you tomorrow. >> see you later "squawk on the street" is next ♪ money, money ♪ good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber final week of april and busiest week of earnings so far. a first look at q1 gdp a biden address to congress. plus a fed meeting futures pretty steady. our road map begins with a massive week for earnings. more than a third of the s&p 500

is set to report, and it begins with tesla after the bell tonight. >> plus, the race against covid. sanofi teams up with moderna, the cdc says millions are skipping second doses and the potential risk from a rise in hesitancy surrounding j&j's shot. and bitcoin's bouncing back a bit. the biggest investment in cryptocurrency, rallies from a seven-week low, that happened just in a couple of days last week carl >> yeah, a lot of good points this morning but earnings will be the lead for most of the week we will start with tesla tonight, jim, and then move into so big faang names as we get into midweek energy names on friday what's going to be the thing to watch? >> look, i think it's going to be apple i think that ap, there is a deutsche bank note that expectations are low, and a 20% increase in the amount of jobs that they are going to create. pretty big numbers but i think this is the one that holds the key in the sense that it's still the biggest, it's done a

tremendous amount of work with max, which i think it could move the needle and when i look at it, it has moved substantially, and that's why i think it's important. because a lot of stocks have moved substantially into earnings and typically that means sell-off so doesn't sell off on good news that's what i say. >> tell me, what are your expectations >> i think it doesn't sell off i think that the cycle, i looked at semiconductor companies, skyworks, mardevelop technologies, 5g is so strong, it's here and maybe it's here with t-mobile, but i think that verizon wants it i thought that the at&t equipment sells very well. >> it was not a bad quarter for their wireless business. i thought frankly verizon was the weakest of them. >> yes, it was and i think it can triumph over the negative expectations. there is a theme carl, that is

very much, it plays into what jay powell will talk about, if he wants to talk about inflation, which is most of the analysts i follow are saying this is the peak quarter, now david kosti, i think with his excellent note last night is really talking about peak quarter. if it's peak quarter, why raise rates, carl? >> that's exactly what the fed would probably say, jim. and to quote kostin, he says domestic growth is peaking, and forward equity returns are likely to be modest with a 3% gain in the s&p to our year-end target they're looking for 4300, jim. does that make sense to you, that with peak growth, and peak positioning, some argue, that we sort of churn our way around here for at least the summer >> it's funny, i love kostin, i turned to my wife, sunday, i was reading the thing, and one of my phases is really negative, and he doesn't regard it as being

negative. >> he would never say negative we never say negative. not allowed to say negative. >> but if you're pete, you can't be as bullish. >> 3% is not exactly overly exciting >> no. >> i think kostin has to be called out on this. >> yes. >> he was basically saying, you know what? we're kind of done. >> yeah. >> that's his target he's sort of saying, that right? >> i finished it dave, i'm not going to read you anymore. >> it might be right call him out he might very well be right. who knows. >> and all of the charts of all the earnings, carl, and i thought the earnings looked good, the estimates looked good, but it was a real buzz kill. he joined that group of people who just said, hey, good to see you, come back later, and i was o open, i was hoping he was going to say -- well, i was with judy mark, oh, my, the beginning of the opening of the u.s., 18% orders, 10% organic growth carl,when you speak to her,

she's like get out of new york, she says, get out of new york, you will see trains everywhere, atlanta, houston, west coast, and i love this, this is right in david's face, david keeps saying there's no business track. >> i didn't say "no," i was questioning whether it would come back to the levels it was -- >> it's just hyperbole. >> that's a mistainment. >> yes. >> one of the things, you asked, are you vaccinated and if you're vaccinated, i'll come see you. that's the dialogue. even if the cdc or whatever, the whole part on the florida governor, you can't restrict people to do that, but what is amazing is business people, david, if they know that you're vaccinated, and i'm vaccinated, you know what? you know what we're going to do? >> it's big. >> it's big. >> you and i are going to dinner can't wait to carl to join us. >> it's big. >> certainly not in his wheelhouse. >> no, but carl, you know what, i think there is still a

question to be asked in terms of whether business travel and/or activity on that level will come back to the levels it once saw in 2019. perhaps internal travel, that desire for an executive to go see their -- that may be muted for some time as opposed to when you're competing for customers >> yes, it's what gary kelly of southwest told us last week, guys, and that's long-term, it's a difficult call, because you don't know what kind of role these new tech tools that we have are going to play in those kinds of marginal decisions within corporate about travel and budgets in general, really but we're going to see jim, i mean to your broader point though, scott gottlieb, op-ed in the journal today, talking about the masks probably need to get dropped, at least outdoors, and there's a report on cnn today that the president will essentially announce something like that tomorrow >> good. >> meanwhile, we've got more counties and states saying we don't need as much vaccine, stop sending us so much, because the

bookings at vaccination sites are not getting filled as much. >> carl, we're booking today. >> meanwhile, are you not concerned that demand for the vaccine seems to be ebbing because we have not vaccinated nearly everybody in the country. >> the people who need to be vaccinated, older, elderly, it looks like they're vaccinated. >> yes. >> there are people still getting vaccinated, but remember, israel at 60%. >> huge reduction in the virus. >> yes. >> so i keep reading the negative story, but i keep seeing the number goes down. you look at johns hopkins number, they're not bad. >> no. >> and i feel confident to go to italy. >> good. >> i do. >> so do i >> i want to go to europe. >> i also feel confident to walk on the streets without wearing a mask and i'm happy to see they're finally going to catch up with what seems to be reality for some time which is the likelihood of you guys catching

the virus walking past somebody for that millisecond is extraordinarily unlikely >> it's inside. >> and as it gets warmer out, this is another new yorker, you don't want to be walking with a mask, if you can avoid it, so that is going to be welcome news >> indeed. and that is sort of already culturally the norm in states like florida and the northeast, you got to convince new yorkers to get on the train. here is what gottlieb said on "squawk" earlier today. >> the weather's warming up. bee we have the opportunity to bring activities outside and i think the ruks of public health officials is it is a one-way street and when you lift requirements you won't be able to reimpose them so they want to make sure in fact the trends are down but the trends are down. the gains against the virus are slade fied against vaccination and immunity in a population. >> so then, jim, i guess the question is, on these reopening names, where in some cases, enterprise value is back to

pre-covid level, right >> yes. >> whether or not this sort of grand opening is already priced in. >> well, look, we trade these cruise lines, and i know that frank del rio, i'm sure we will talk about the fact that he's highly paid, i think he's worth it, frank del rio at norwegian has sent a letter to the cdc, listen, we want to go, you got to let us cruise, we're testing everybody, everybody before they go on, and we're, they got to be vaccinated, so let us cruise and what's the cdc going to say? they say they're jammed. can't make a decision. they're jammed >> they got to move forward on a lot of this stuff. and by the way, you got to open your restaurants up already. new york, it's crazy everybody's packed you can't even get a reservation anywhere. >> why because they're so busy. i'm trying to get a broker to come and give us the assurance we need for fire

we agreed to put in the alarm. they're too busy, david. >> they're too bus qy? >> you had the insurance previously >> we have to re-up. >> david, i'm begging you. >> i'm eating there. it's great we talk about animal spirits, people are out in force everywhere. >> restaurants have reopened and opened, carl, the blocks are jammed >> they're pouring out of them into the streets where they can of course eat as well. >> carl, it's a boom it's a boom. there's nothing else to call it. and i don't think it's peaking, unlike david kostin who will absolutely hate that i say that. >> you would say that's reflective overall of what you would consider increased demand and positive for the economy and the stock market. >> i think we're laggards. i think the vast majority of analysts that i read say this is it, this last quarter is it, that is the prevailing thought, and i've disagreed with that i want to lean into, i just want

to say "lean in. i just think that, carl, i know, imagine, i want to lean, in i saw a guy who wanted to lean in to covid why would you want to lean into covid? i want to lean into covid. what's the point of that because he's vaccinated so much and he wants to lean in. >> i don't know what that means. >> i read it in one of the reports. it was a rail guy, if we lean into covid, what do you mean lean into to covid who would do that? >> and b of a made a call like this very much like this back in november where they said sell the vaccine on peak positioning and what they thought was peak growth back then, that was six months ago, so the question is, is that notion finally right but to your broader point about the reopening and companies that have restructured and reset costs, look at this apple announcement today, doubling down on investment, in the united states, 430 billion in the next five years, 20,000 jobs, a billion alone in north carolina, on this new hub, that's going to feed this notion

that you're talking about on rolling, rolling reopening and recovery for the economy. >> yes, and i looked at that and i said look, obviously the congress of apple has agreed to, 20,000 high jobs, and all sorts of cities, north carolina was very special, but they've already met their goals, in a lot of different places, and i feel like that they are, they are providing the kind of jobs that i know washington would like to provide, and that is going to be meaningful to the economy. some people would be cynical and say they already, you know, they have already committed to a lot of jobs that they would have done already. >> a lot of it is already part of the forward commitment they made or plans to grow. >> right. >> but the north carolina hub is very interesting and was unexpected >> yup silicon, the development, 5g, of course, as you mentioned earlier. >> austin. boulevarder. >> these places are on fire. >> have you been to boulder? >> not recently. >> crane, cranes, cranes

austin, cranes, cranes, cranes. >> where a lot of the growth is, as you know. a lot of businesses are moving there. >> it's about cranes mistake. it's about cranes. >> it's about plastic. it's about cranes. >> houston atlanta. denver denver cranes. that otis call really got you going, huh >> i think the otis call, i think it's meaningful. >> how's china. >> china is way ahead. >> if europe comes back, it's going to be, net sales 14.9, organic up 10.3, you think procter & gamble has numbers like that. >> a nice number, organic growth 10.3%. >> new orders 18.4. >> it's not lasers anymore it's elevators >> it's elevators. >> carl, it's escalators >> escalators, too >> i thought this was the most important report of the monk h -- of the morning here, david, you can read it.

>> why do i want to read it? even if i read it, i wouldn't be able to talk about it. >> proof point. >> an enormous deal. >> carl? >> jim does "what i'm watching" every morning. >> you think i read that >> gary, this morning. gary steele. oh, you don't care he's only the ceo. i completely care about everything i just no that - >> amc, and ocugen that's what you care about. >> ocugen? >> carl? >> let's take a commercial break. and we'll be back. >> we are going to get to what david is watching, we'll talk some rails, obviously, and there's a lot of news on bitcoin today. we've got some calls on etsy, downgraded, don't go away. futures are steady

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after falling below 50 k late last week as you know. on track to snap a five-day losing streak but well below the record highs set earlier this month in the mid 60s a bunch of incremental bits of news camping world establishing some payment options. shawn culkin of the kansas city chiefs reportedly on the street.com has a piece how he will immediately convert his salary this year to bitcoin. look, it's an incredible store of value certainly doing better than gold i agree with the theories that, novagratz is the primary backer, and pomp, they're both very smart, it's about scarcity, there's no scarcity of dollars, carl, there's just scarcity of bitcoin, and scarcity draws people scarcity of gold 1% more gold that's one of the reasons why people like gold but i'm a believer in this i'm not a believer in doge coin. because i think that dogecoin was created as a joke and it's hard for me suddenly, david, it's hard for me to say it was created for a joke, but it's real. >> right. >> aren't you going to answer

me >> it's a joke hard for to you imagine it's real >> did you not agree with me >> a thesis? >> i have no different thesis. i agree with you i think you have such a hard time when i agree with you, you don't know how to respond. >> well i'm kind of numb -- flummoxed. >> when i go to portnoy, barstool, i like them to make book doge coin because we had a guest earlier saying it was a fun game, a fun game a fun game is gambling and i didn't believe that gambling should be encouraged carl and i thought maybe after she talked we should not talk about doge coin. >> i heard you giving "squawk" some pushback on even the booking of a coin desk by the way, chief strategy officer who i think did mention, at least coinbase did this morning, having said that jpmorgan will

launch an actively managed bitcoin fund for private wealth. >> i hope that -- well, not all cryptocurrencies are created equal and i think what we do is being smoothed some, and that we don't think are storeholds of value and we keep the others in. and i think ethereum, you have to buy certain things, there are places in the world, carl, which say listen, you can only buy things with ethereum and you can only buy a boeing plane in dollars and i get, that they can force us towards that, but i don't see anyone from say the colts taking doge coin, okay i think maybe, david, the jets, even they, david, have rejected doge coin. the jets have rejected it. >> give them time. give us time >> what about the mets >> no, the mets are not. i think we're one game over .500

we're in the lead in the division. >> the phillies are not. >> we lost yesterday. >> we won. >> bryce harper wants dollars. >> they should have paid him in doge coin. >> oh, wow carl, there's an insult. >> the knicks get paid in whatever they want they get to decide. guys, we'll take a break here a lot more "squawk on the stre" aine.etin mut

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♪♪ just in time all right. we have a "mad dash" coming up and an opening bell about six and a half minutes from now. you want to talk a little best buy? >> downgraded today. i want to talk about the notion of what's going on best buy is, wow, that's a good

chart, it's the epitome of what i keep reading which is williams sonoma is going too far. you should stop buying williams sonoma best buy, it's going too far we should stop buying best buy but david, it is doing so well what makes you think it's time to go? i keep saying, williams sonoma, i've had, on and restoration hardware, many people thought it was over, david, it's not over until the fat lady sings and she's not singing. >> which is the point you were making at the top of the show and sort of disagreeing to a certain extent for kostin's forecast for the overall market. >> kostin, kostin, i like him. >> no, i know you do. >> but look, you see honeywell, and union pacific, both down hideously last friday. nothing but defenders. why? because business is so good.

so business is so great and everybody wants to see through when it's over and i'm saying it's too early. too early to see through these companies keep delivering and delivering and the analysts keep getting it wrong. i think they will be wrong >> you do? >> kosti in. >> it's like a netflix series. >> they're realistic and maybe saying they're going to take profits and you can't blame, sometimes analysts rarely do that. >> downgrading etsy, why, he's up 800%. i like that. there's a guy who declared victory. but david, for the most part, i don't want sell best buy we could be, i have tractor supply on tonight, david i have tractor supply. >> whoa. >> you're vaccinated. >> i am. >> well tractor supply - >> we're just beginning. we have an oni bl pengelcoming up

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volkswagen, warning that the chip shortage will have a bigger production cut in q2 than q1 and we will look to ford to see if they ratify that. >> i think we're starting to see the end of the titans, carl. i was doing a lot of work on sky works on friday, i think skyworks, when they made this decision, from silicon lab, will be able to make a lot more chips, and i see taiwan semi starting to talk about maybe lowering chips, which is what you need, lower end chips, which is what you need, the auto companies need, and as much as i like volkswagen, and i have a feeling that they are out of step with what's been happening in the last 72 hours and the last 72 hours have been very good news for a lot of the auto companies and i think the fourth quarter is going to surprise people. this is stuff i did over the weekend. so i'm feeling quite confident that things are about to change. remember, the reason why the autos didn't have any relief is because they're making the

lowest end, david, it's the lowest end chips, and it was not advantageous taiwan semi saying, working for you. sky works. >> a little out of consensus. >> indicating this will go on more than initially. >> i'm very homework-driven, david. >> amen to that. carl >> it's true, jim. trying to make that point a couple of times, the automakers don't necessarily have the biggest leverage because they're part of the mix, their part of the mix is not the biggest and certainly as you said not at the top of the pricing structure but we'll see if they can make this the worst of it that we're in right now. great news overall >> and we will hear from ford. i happen to think that the tone is going to change someone got to taiwan semi and said look, enough, start making them and i think it's very significant. we'll hear from amd this week. they're not auto but i do think that there is an

easing cisco says there is no reason for -- >> no easing on d-rams >> these are not d-rams. these are very low end chips that has not been lucrative, but i think gord and gm are going to be surprised with the chips. >> that there is going to be more supply than they think. >> yes. >> all right, good that would be helpful. got to sell cars and trucks. >> exactly. >> yes >> exactly >> something else that is selling, cyber security. you know that. i did want to talk about that proof point deal we mentioned it briefly. dom chu covered it at the end of the "squawk box. 12.3 billion, a leveraged buyout, again, very active at tomo bravo, they have been, they continue to be, what is it, 36%, it is the premium over what they're calling a three month volume weighted average closing price. that is through friday it represents about nine times

i'm looking at a couple of analysts here. let's call it around nine times estimates of the company's fiscal '22 revenue i've got wedbush saying fair but attractive valuation in their opinion. there is that 45-day go shop as we often see as part of these go private transactions where they have the opportunity to at least look for other potential offers that would be above what thoma bravo is paying, jim but it goes to what is a continued sort of pace of acquisition in, broadly speaking, this arena. >> well, look, i think this is precisely what i'm talking about, about the market being reasonably valued. privepoint is an expensive start. gary steele, remarkable ceo. he's done a fantastic job and david, he gets an all cash deal, after all of the value creation he's done. so what does that say about companies out there? this is an expensive deal. gary steele did well for his shareholders >> nine times next year's

revenue, it is usually a pretty good multiple one would think. but i don't know what the purists are for this company and what their multiples are, jim. although i assume it's less at least, obviously, with takeout, you're typically paying the control premium. >> gary, he has a cloud business i think that now, everybody's going to start looking, it's very expensive companies, and now it's a public company, but i never thought that -- gary steele has been on "mad money," i don't know, maybe a dozen times. >> right. >> i never heard for a minute that he would sell out but carl, when you get a bid like that, you may have to, it may take forever, no, it may take a couple of years to get your stock where that is, and i applaud gary, he's, he does, you know, remember, he is software as a service for cyber security, compliance company, and i think it's a remarkable deal, carl,

and it says you should not be selling all this tech because you hear it's too high, i would have said this is among the companies that is too expensive, if you believe that. so i think this is a great sign for the market. >> it is a sizable deal, carl. although we should mention one of the larger ones we've seen in terms of private equity for some time and you have to write a fairly large equity check for these, obviously you're taking on a good amount of debt as well, but getting above 12 billion, we haven't seen that too often but another sign of confidence and obviously as we said thoma va broe has been very active and a good track record and therefore their ability to gather new funds and deploy them in this way. >> interesting, guys speaking of things at higher price, jim, b of a has a piece out this morning looking at the number of mentions of inflation on earnings calls, tripling. the biggest jump in history since 2004.

>> it's concentrated it's steel it's poly ethylene it's lumber. it's not -- and polyethylene by the way, we are going to get a thaw, we're beginning to get the rebuild of the plants that were taken offline by yuri, and much worse than we think, but i think the inflation is concentrated, and i am, i know that i waffle david, i often waffle. i know that i waffle in this but it is concentrated inflation. and it's not really hitting wage inflation as much as you think in other words, people aren't making more money. >> not yet although we bring on ceos who have jobs at the lower end to be fair, but can't fill them. can't fill them. >> well, they should pay more. >> we can go back to that and then well, you know, people want to just stay home and not work while they're collecting benefits that are in excess of what we can pay them that's what, that's the answer that you get from a number of these ceos of, fast casual restaurants and things like

that. >> they should just go and listen to the conference call with chipotle. isn't that the best anyway >> that would be what you want they have the highest average unit volume and pay great wages and they don't want to, they don't have a problem just like costco doesn't costco pays the most and has good benefits, too. >> has the best benefits >> i know, it's always defied sort of -- i mean some of their competitors have moved more towards hem, as opposed to the other way. >> carl, jim senegal when he retired, i said why do you pay more, and it's very simple, when you have people with turnover, you have to train them for at least three months, and you make nothing off those people, and so why not pay people more and have them stay and the turnover at croftco is incredibly low, and the turnover at other stores is

very high, and they have a lot of people who are either being trained or have to train them, and that is costing much more than what costco does and that's what is going on. >> the friction of hiring and adding, on boarding new workers is huge, jim, and it does remind me, though of companies that have been talking about higher costs, boston beer gets, i think, a price target cut over at citi today, they go to neutral on sam, isn't that right, jim but we were worried about input costs. and then margins were up year on year last week. >> i thought that was truly a bad call that downgrade truly. >> oh, i got it. sorry. i was thinking about what i'm talking about so i was looking at you >> i just flew in from san francisco and boy my arms are tired. sam had a great quarter. truly picked up share, everyone thought, carl, that hard seltzer, that there's so many competitors, that these people would be hurt, they put up a

fantastic quarter. >> you did the mad dash on friday i remember that. >> it was great. >> i know. >> the analyst wants to call the top. how many people have to come in and call the top i'm not a top caller. >> no, you don't want to get on analysts for actually being somewhat negative to neutral i find, i mean they're typically way more often positive than anything else. >> i think it's starting a change. >> there are a number of analysts who are constantly getting you the wrong way this morning. >> they're irritating me. >> they are. >> yes, they are. >> guy, i did want to hit the rails again this morning if it's possible sort of an unprecedented bidding war, we may enter to, or at least this fight over kansas city southern. a lot of news over the weekend to get to. and i want to try to cut through it for people who may be sort of their eyes are glazing over already. >> no. >> all right, sorry. it's more, jim, about the complexity of the review from

the stb. but as you can see it here, kansas city southern above 300 listen, canadian pacific, they have news that is good they will be able to review the deal under the so-called old merger rules so they got waved from the new rules, and even though they're 20 years old which should make it easier for the anti-trust review simply said. cn for its part, says if you do them under the old rules maybe you want to do us but we'd actually prefer the new rule, the more stringent rules and appeal more to the shippers and plane of whom are coming out in favor of the cp deal and now this morning a lot are coming out in favor of the cn deal. and almost you could call it the war of shipper letters that's a thing i guess i'm making it a thing. but the most important decision that will be made here by the stb is whether they will allow both companies to pursue a

so-called voting trust which seems likely for the cp deal given they have the waiver but it is seen as likely for the cn deal that removes a risk to shareholders and that says to the board, well, you're going to get paid even if this thing doesn't go through. or it takes two years for the review the money is going to actually go into the trust. it will therefore, you will, as a shareholder, get your money, and then the trust is created to hold the stock that has been purchased. so that takes the risk away. that's the key thing here. will they get the voting trust and right now, it does appear likely, that in the next couple of weeks they are going to sign up the cn deal, unless cp comes back with a higher offer, that's based on a lot of reporting at this point, over the weekend, kansas city southern says yes, this will likely lead to a superior proposal, due diligence to be done, it could take a couple of weeks but the expectation is after that, they are most likely going to say

hey, i mean they're not going to get a shareholder vote, jim, if they were to stick with the old deal, given where the stock price is trading far above where the old deal was worth and then it comes back to keith, the ceo of canadian pacific, who we were talking about, pretty outspoken in those comments, during that conference call, saying our leverage ratio is here, how much do we really want to take it up, and seems to basically just be fighting this on anti-trust grounds and the perceived risk of doing the other deal, as opposed to a willingness to potentially come higher but that's what he is going to have to do, jim, if they really want to try to - >> but what's the role of a very negative union pacific on this deal >> what do you mean? >> on the call friday, he said this is just a really bad deal, anti-competitive. >> which one >> either one. >> either one, right >> listen the stb is the one who will rule on this. they will be listening to the shippers, that's why today, every day, you get, a refiling notice, i mean cn receives

overwhelming stake holder support for combination with kansas city southern citing 409 letters, from stakeholders supporting the transaction. that's what the stb will be listening to is the shippers >> you're absolutely right. >> and that's where a lot of this will come down. and if they were not to get the voting trust, that changes the entire complexion of their deal and makes it very difficult, one would argue, for the kansas city southern board to go ahead and then you have taking on enormous risk your shareholders will have to bear as opposed to the other way, which is well, canadian national is taking that risk, because it's all going in the -- >> right. >> so you have to make it simple for people to understand and cp will probably have to come back with a higher offer, voting trust is the key and the shippers on both side, they're getting everybody in line. >> it is a great deal for whoever gets it. >> they're paying 20 times ebitda that's what their bid is and put that in perspective, buffett bought burlington northern for eight times >> wow. >> so that just gives you a

sense of where cn is in terms of the value of their bid. >> oh, geez. >> and one reason, why, buffett's name around, would he ever consider stepping in as well >> he doesn't usually want to compete in those kinds of situations >> carl? >> guys, kind of remind moose he, a re, reminds me, a record g on the transports. s&p trading above the record close but not quite to an all-time high. let's get to rick santelli hey, rick. >> good morning, carl. yes, all eyes continue to focus on what has been a pretty aggressive year for the dow and the s&p, actually all three, indices at various points and the 10-year, 8:30 eastern, something changed and we had a weaker than expected seasonally adjusted preliminary look at march durable goods but do keep in mind that seasonal adjustments, the entire process, is really scratch your head in 2020 and 2021, due to obvious

circumstances. so many continue to look at not only seasonally adjusted numbers, but nonseasonally adjusted numbers why am i bringing this up? because they're pretty good for durable goods. and i bring that up because this thursday of course we have the first look at first quarter gdp, and it could be a number close to 7% which is going to be big, big, big, a one week of 10s, even with today's activity, everything blends together what jumps out at you? 1.52 1.521/2. and an important closing level technically to pay attention to. remember last week, bank of canada, first to announce that they are going to taper. well, look at the one-year chart of canadian 10-years can you pick out anything last week that changed the sideways look of that chart no, because pretty much investors understand that things are going to get hot at some point, and it's not a question of if, it's a question of when, for every economy, really at

this point, it's who is going to be having their debutante economic party first it certainly looks like the u.s. is towards the front of the line, and finally, the dollar index. here's a march and april together, why is this so important? remember how exciting march was? basically, the dollar had a 45 degree straight up notice what april is basically a 45 degree straight down pretty much giving all of last month back carl, jim, david back to you. >> all right rick, see you in a bit rick santelli. so now on a monday morning, you have the financials, energy, industrials leading, with utilities and health care lagging behind goldman and axp will lead, the dow up 90. back in a minute

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the pandemic did not stop many companies providing big

payouts to ceos and the times had a piece, paycom chad richison $200 million. and we should remind viewers this is total comp, and it includes everything, including stock. but jim, they did point out, the average ratio of ceo pay to average worker is now 320. in '89, that number was about 61 to 1 >> that's the problem. and wheronald reagan was presen, they were very close together and this is something that may come up when joe biden talks about the tax code and how ridiculous this is. >> most of it is stock-based comp and all that was done to try to align the incentives for the people who run these companies with those who invest in these companies >> right >> and that has been the case. and many of those companies that we saw have done fairly well

not all, as well as you would expect given the level of compensation. but look at rutledge at the bottom of the list and the guy has made hundreds of millions of dollars but you know what, charter has hit levels that very few expected it would as a company. >> right i saw there bob backus is on the . i'm not quite sure, you know, i'll have to check and see, but again, listen, he's being richly rewarded for what he has done at ge. and the numbers are staggering in some way, but again, it's not salary, it is largely based on rsus or options. >> right >> just largely stock-based compensation that's what we're talking about. >> that was agreed upon by the board. yes, david, they tend to look at other companies to see what they're doing, and that's kind of scandal is that everybody looks at everybody's comps. >> right >> but larry cole was a coup to

get. >> is there a provision that let's you take it back if things suddenly turn around or you find out. that is another question one year, okay five years, ten years, how do you actually measure it. >> good question. >> and how do you effectively measure it, carl, to make sure it has been long-term value that has been created and not simply certain things that were done to sort of get numbers moving in the right direction, the stock price for a shorter period of time >> yeah. indeed, and then there's the added dynamic, guys, if getting your valuation higher is a function of resetting your costs and therefore laying off workers, what are the externalities, jim, socially between going to, say, technology at the expense of labor, even as your ceos are getting richer what happens to the workers you let go. >> years and years i met with president clinton about this, and i said stocks fly when you lay off people maybe we should give the workers

who are laid off stock absolutely, that is a great idea we're going to follow up on that >> still waiting >> i got a diet coke >> it's a good piece worth taking a look at from the times over the weekend 'rba iju aine.wee ckn st mut 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.

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let's get to jim and starting trading. >> stock goes up that's one of the reasons i like the advanced micro deal with skyworks, on thursday, they bought a piece of silicon labs that allows them to be an internet of things, allows them to be in automotive. it's a major diversification a lot of people say they were too close to apple you're not supposed to mention apple. liam griffin, the idea that this company is no longer just cell phone means that it's worth a lot more than up six, and i think people who recognize diversity, away from cell phones get much higher multiples, david. skyworks is too cheap. people feel if cell phones slow,

then there's nothing you know, it's also 19 times earnings that's over. >> weren't they considered to be the largest single provider to apple, in terms of the phone itself, what went in there. >> exactly, david. exactly, now they have other businesses including automotive. we know how hot automotive is. it was a brilliant acquisition day borrowed money, like 2%. >> not bad >> if you could get a mortgage of 2%, you'd be happy. >> you can make things creative if you're borrowing at 2%. >> it's no longer just hostage to apple. >> interesting, jim. >> and then tonight, tractor supply. >> oh, boy, i used to be at macy's this is the fastest growing retailer in the country. david, there are 42,000 people from tractor supply. remember, you used to dismiss me when i would talk about tractor supply it shows you were completely wrong, and i don't mind that

>> no. >> it doesn't bother me one bit. ridiculed me ridiculed and dismissed you, was it that bad, that tough? >> and then i got some other people. >> you've got a lot of people. >> hartford, that's a deal, and cleveland -- >> hartford is still being somewhat sought. i would be curious to hear the ceo tonight. >> and just got a downgrade today. the ceo does not like downgrades, i suspect that the downgrader is going to have his bell run not a is not bubble, just a bell rung >> thank you >> jim, that's reason to tune in all by itself. we'll see you at six "mad money" with jim cramer onon cnbc we're back at the top of the hour don't go away.

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qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit conventrydirect.com to find out if you policy qualifies. or call the number on your screen. coventry direct, redefining insurance. good monday morning, welcome to another hour of "squawk on the street," i'm carl quintanilla, with morgan brennan, and david faber big week ahead as we get more earnings, gdp, a fed meeting, a presidential address, morgan,

and a lot more. >> it's going to be a busy week. we're 30 minutes into the trading session. here are the three big movers we are watching this morning. we're starting with johnson & johnson. states began administering the covid vaccine from j&j over the weekend as regulators recommended that the pause be lifted shares are down about 1/2% meantime, apple announcing plans to invest $430 billion to expand its u.s. footprint, create 20,000 new jobs across the country over the next five years. that stock down slightly and grocery store operator, albertson's shares getting a hit after a loss in the fourth quarter. the ceo is going to join us first on cnbc this hour. david. >> thank you, morgan let's start with a possible tax hike, something we were talking about late last week reports are the white house this week will propose nearly double taxing on capital gains, 9.6% for people earning more than a million dollars. you get above 40 with us, pulitzer prize winning

columnist for the "new york times" jim stewart and somebody who has followed tax policy for a long time. and we have been having a conversation as well first question is simply what do you think of what we are hearing from the administration when it comes to capital gains >> hi, david, yeah, this has been a subject of great interest to many economists i long advocated for equalizing the rate on capital gains and earned income, and many economists have as well. in fairness, why to we create unearned income more favorably than earned income now, that said, the way this is being handled, i've always felt that the reagan approach was brilliant. he equalized the rate on capital gains and income, but he used that huge surge of additional income to lower marginal rates for everybody. so with the stick of the higher capital gains, he had a carrot of lower rates for everyone.

this is being phrased as a way to pay for some social welfare programs, and whatever -- whether you disagree with those or agree, is going to be targeted by republicans as some kind of socialism and taking from the rich to give to the poor. >> right well, all of this designed, jim, to address what has been this growing disparity in the country between those who have and those who don't. and, i mean, over the last 20 years, we have talked about wealth disparity, and you're pointing it to how do you respond to those who say, listen, this is going to hurt the ability, capital formation itself, and risk taking. >> i don't buy that argument you know, people say, oh, the capital gains tax is discretionary, you know, it's only if you sell, you have to pay it, which is true but you can also argue that earned income is discretionary, you only have to pay it if you work and make money does that stop people from working? no i think people do want to make money in all forms and the marginal rates, you know, i've

read many economic studies on this, clearly there is a marginal rate where you're going to deter conduct where that is, it's, you know, we've had marginal rates this this country at very high levels, which basically just encourages tax avoidance, and at some level you may get some push back there i don't think most people feel we're there yet, even though, let's face it, especially when you add state taxes, the rates getting up above 50% in some places that is a little worrisome, but again, my argument, maybe in some further discussions, if you're really broadening the base by raising the capital gains tax, you ought to be able to lower that overall rate a little bit i'd love to see some give back in this. another poeint you made, raisin the capital gains tax is a highly effective way of taxing the wealthy, the top 1% pays

roughly 75% of all capital gains tax. the issue congress has to deal with, a big exception is when people sell their homes, and you pay a capital gains raette on that a lot of people are not rich maybe they are lucky enough to live in high value real estate, they have been there for 20 or 30 years, and they're going to have a million dollar gain, so they're either going to have to raise that exemption on the sale of primary residence or do something to address the real estate issue >> yeah, it's interesting, though, you say we don't know quite when we're at that rate. jim, we talk a lot about the impact of state and local income taxes in high tax states, such as the ones we live in i don't know where you're living these days. >> i live in new york. i'm very high tax. >> all right you're back, good. >> and paying it, believe me. >> you're in 57%, possibly you could get that high. it would seem at that level, you are incenting people at the very least to go to another state

where they know significant capital gains to release. >> it is pushing the line there. nobody knows for sure. but i'd rather see a more incremental approach so we can see what the effect is bear in mind, it's the federal government doing the raising you don't escape it by moving to florida. you're still going to be paying the same high, you don't get the state edition there. you're still going to be up there. i think another point to make, i know there's been some concerns about the impact on the stock market i don't think that's a serious issue, so much trading in the stock market is done in tax exempt or tax free accounts, and again, because it is discretionary, the higher rate is going to encourage people to hold assets longer, and i think you could make the argument that's good for the stock market it reduces selling pressure. but purely looking at stock values, i don't see that hurting the stock market at all.

>> as for the argument, jim, that higher rates deter innovation and entrepreneurialism, the joke on friday was that apple and microsoft would have never been founded or created if rates had been in the '70s era, neighborhoods and in fact, that's when they were founded. i guess i wondered had you seen a period when you felt activity was literally suppressed at the entrepreneurial level because of the marginal tax rate either on capital gains or income. >> no, i haven't ever seen convincing data that addresses that issue i mean, i just feel we haven't had periods of such high capital gains rates that you're going to see an effective deterrent or entrepreneurial activity people want to make money, and even if it's keeping 50%, as long as everyone is paying for it, you're still gaining in the

competitive marketplace for greater buying power if you're earning, you know, 50% 50% is a lot better than 0 so there are still very very strong incentives to work and earn and to create businesses and to provide capital formation. i think, again, as long as it's fair and across the board, i haven't seen any imempirical daa that supports that argument. >> this dove tails into the conversation but shift a little bit, and the fact that the "new york times" wrote about it this weekend, executive compensation, the fact that as we know, it has been soaring for decades but they crunched the numbers to show the executives of the biggest companies in the u.s. make 320 times as much as the typical water. 1989, that ratio was 61-1. i want to get your thoughts on this obviously taxation piece of it and what we have seen in terms of stock incentives that fits into it, the entrepreneurial discussion we're having here,

but is this going to be another area of focus for the biden admini administration >> that's a really good question because, you know, first of all, i think there are two issues here, there's the overall climb in executive compensation, pretty much across the board as you point out. and then there are these individual cases that -- where you see, oh, my god, these people are making millions when the company is losing money or it's not doing well. those two me are two separate issues to address the second one which i think is quite interesting, you have to look at this on a case by case basis when you actually look at some of these ceos last year whose companies were in trouble but they made a lot of money most of that is in the form of insented compensation. for example, the guy at hilton, his base pay was cut, to something a little over 300,000, but the bulk of those millions came in the form of stock option grants and vested stock, which he doesn't -- it's not like they

write a check. he only guessed that if the company meets certain targets and the idea is it aligns his pay with shareholder interest. now, of course if i'm a ceo, when do i want to get stock options and stock grants, it would have been last march when the shares were really really low, and so, there is a lot going on there that looks like it's, you know, aligning with shareholder interests, but in a way it is allowing ceos to simply, you know, line their own compensation more broadly, my question is why doesn't the market for top executive talent work more efficiently. why isn't there more competition at those levels. i have long thought boards, that's a big issue there, and this is a complicated subject. ceos like to create the impression impression irreplaceable and that's why they have to be paid so high. it's a market for labor and talent like any other, but i

don't think that's been tested very much want i don't really see ceos jumping around because, oh, i got my stock options cut this year, so i'm going to move to be ceo of something else. there may be a little bit of that, but i think that we do need further analysis of why this market doesn't work more efficiently. >> yeah, i agree they're all treated as though they're superstars and there really are only a few. that's always been the case in the hedge fund industry for years, people who are mediocre making tens of millions of dollars. also something you would expect to be part of the compensation arrangements as a clawback provision of some kind you're getting paid on the performance of the stock price but what about three years from now, if things really turn negatively, as a result of decisions ceos made. there are usually no claw back provisions at all on these kinds of things. >> absolutely. it's like it's all up side, and no downside, and by the way, i think one thing that we've learned, you know, that the

sense was ten or 20 years ago, give them stock, it aligns with shareholders, that's great but conversely, again, i think because of the no clawback provisions, when there's no downside, that actually encourages undue risk taking and in some cases, it encourages fraud, and accounting irregularities, because so much of the compensation is tied to stock performance, and a ceo has -- with a lot of options has far greater incentives to get that stock up than the average shareholder or the employee that really doesn't have very many shares, so there were some perverse incentives that came with this highly aligned compensation of ceos and share prizes it's not panacea, and i think -- i totally agree with you the clawback and having some downside risk here would hugely improve executive performance. >> an issue we will continue to discuss, of course, in probably

many years to come jim, always appreciate it. taxes and ceo comp, yeah, they're not going anywhere good to have you, thank you. >> thank you >> let's get to our josh lipton for more on apple's $430 billion investment which was announced this morning josh, how do we get to $430 billion with this announcement >> so morgan, it is a big new bogey from tim cook's company. apple now saying it's going to spend $430 billion in the united states by 2026 that is up from a five-year goal of 350 billion, the company announced back in 2018 that 430 billion includes spending with apple's american suppliers data centers, and capital expenditures, and here with some news as well apple says it's going to spend $1 billion as it builds a new campus in north carolina and creating 3,000 new jobs there. apple's coo jeff williams saying in a statement, as a north

carolina native, i'm thrilled apple is expanding and creating new long-term job opportunities in the community that i grew up in local reports suggest that apple qualified for an incentive program in north carolina for companies that create 3,000 jobs and invest at least $1 billion under that program, apple can receive grants from north carolina, totaling more than 29 million a year, once they do hire those 3,000 people or 800 million in total apple can counter that its investments in north carolina are expected, it says to generate 1.5 billion in economic benefits annually for the state. it's establishing a $100 million fund to support schools and community initiatives there. and contributing over 110 million in infrastructure spending in total, apping le saying it's going to create 20,000 jobs across the country, including many high paying ones in cutting edge industries like ai, and

sil silicone, back to you. >> riddle me confused. i don't understand how this is a $430 billion investment, specifically how we get to that number, but nonetheless, i am curious about the site selection, the fact that they're expanding in a state like north carolina i mean, i just think back to each q2, amazon contest of a couple of years ago. what was that selection? did they give any kind of color on why they decided to land there and some of the other locations? >> first off, for the 430, morgan, you're going to be spending money obviously on thousands and thousands of american suppliers its data centers, capex, also tens of billions of dollars on next gen silicone innovation and 5g engineering apple like every other tech company is going to crunch the numbers and do what they think is in the best interest of their shareholders, and they're going to take advantage of that. i was actually talking to our colleague robert frank, and robert obviously knows this space better than anybody, what's interesting about it is a

lot of states have talked about reducing those expenses, as robert points out. when you see news like this it seems to indicate the incentives are live, popular and red hot as they compete for the tech jobs. >> certainly coming out of the winner column, as far as north carolina is concerned, josh, fascinating development, good stuff. good to see you. josh lipton this morning as we go to break, take a look at what the road map looks like for the rest of the hour including an exclusive, chamber of commerce, ceo, taxes, the labor crunch and more. tesla is kicking off a busy week of technology earnings set to report after the bell we will take a closer look at what investors can expect. and speaking of earnings, the ceo of albertson's joins us next on the quarter and the reopening impact to business "squawk t see wl onhetrt"ilbe right back don't go anywhere. wellness c ompany? i adore their groomers and their vets our physical, social, and mental health cared for in one place. ♪

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welcome back to "squawk on the street," take a look at shares of albertson's, down almost 6%. the company did post a beat in earnings and revenue, as well as predicting current sales for the fiscal year. joining us is albertson's ceo, thanks for being back with us. >> delighted to be back. >> predicting the comparable sales will fall 6 to 7 1/2%, is that a reflection of reopening. >>over all for the year, it would be, so what we're going to think of the year 2021 is a two-year stack the way i think about it is

going through the pandemic, we gained a lot of business, inclu including 11 million new customers that we can identify and in 2021, we'll hold on to the customers but not the same level of sales as the economy reopens, but we finish 21 stronger than the trajectory would have been if we hadn't made all the gains in the pandemic it's a rebaselining of the business as we go into '21 >> you have made a lot, struck partnerships with google, for example, you've done a lot in terms of investing on the tech side as well when it comes to some of that technology, when it comes to things like digital sales, how much do you expect to continue to grow as strongly as it has been >> it won't be the same rate of growth, but that too has re-baselined, morgan, and we'll continue to grow that because we're expanding our drive up and go locations we're adding new delivery capabilities, making it easier for our customers to shop, all of the great products that we have in our store. we are putting automation

technology in our stores these micro fulfillment centers, adding seven more this year. we are getting ready to continue that growth and make sure it's profitable growth as we go forward. >> vivek, i'm wondering on those delivery options, as an industry, retail has embraced this idea that you get delivery in a quote unquote touchless manner you have done work with robotics, do those survive an environment in which people truly feel comfortable being vaccinated and interacting with a human being again? >> so carl, one thing we're seeing is certainly people coming back to stores a little i think people are feeling comfortable coming back into a store environment, people are coming, there's more people coming into a store. remember, part of these things that we've done to make things touchless and easy were also to make it more efficient i believe some of those things

will stick it's faster for everybody, and better for everybody i think a lot of those technologies and capabilities remain, carl. >> we have had a number of ceos come on lately saying they're having a hard time finding new people if they have openings. i'm wondering, are you finding the same for your employee ranks and/or trying to replenish them. >> in pockets, david, not broadly, and the reason is we have about 300,000 associates. a lot of them are part of our union labor tool, and we have contracts, they're well paid, and they stay with us. many of our employees have been with us for 40 years in some cases. so we see less pressure on that. we see it in is certain pockets of the business, certain markets but it's not a broad challenge for us. >> the other thing that's been a theme of this earnings season, and i know it came up to a certain extent on your call this morning as well is the fact that we're seeing higher costs, more inflation, i mean, we've got

soft commodities at multi-year highs. we've seen, nearly every, if not every packaged food company that's reported so far this season talk about higher costs and the possibility of higher prices how is that affecting your company and how do you expect that to translate potentially into higher prices for shoppers? >> yeah, megan, it's important to recognize that we're seeing inflation in an environment where the consumers were quite healthy. i don't want to generalize that broadly. it's always dangerous to do that most households have a lot of cash between savings and the stimulus, so we're seeing inflation because the demand is higher than supply in most cases. to the extent inflation stays in the 3 to 4%, it's just fine. it's what it is today, and some of these things may keep it in that range as we go forward. if it goes above that, a company like us, given our scale, first can make sure that we negotiate the right terms with the supply base, and second, if we're not able to pass it on, we have plenty of productivity in the

company, and a big part of the transformation is productivity it insulates us in delivering the commitments we have made to the street on the pnl. >> does it create a potential tail wind for your own brands, which i have recently had the pleasure of sampling >> fantastic, you are right. it does create tail winds because we control the cost there. we don't have to market it like a cpg brand has to it's 25% of our mix. it's important to get that at 30%. i'm glad you tried it, they're great products. >> vivek, thank you for joining us today we appreciate it on the heels of earnings. >> thank you so much all the best, take care. >> as we go to break, take a look at bitcoin today. as you know, got down to 47 k, rebounding up to 53 k, it's still not quite to the mid-60s it was at last week. s&p came within a third of a point of aecd gh s ck o a touch we're back in a moment

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group is up for the past 12 consecutive weeks. the dow transports is having its longest weekly winning streak since 1899 you read that right or heard that right already up 20% for the year. kansas city southern, saying it would open talks with canadian national railway, though they remain bound by the terms of a takeover agreement with canadian pacific, as we continue to see that bidding war and the drama within the rail space proceed, something i know david's been following pretty closely you can see shares of kansas city are up about 1/2 a percent. carl. >> yeah, indeed. even as we get these rail traffic numbers that are mind blowing on some weeks. after a break, we'll talk to the ceo of the chamber of commerce, suzanne clarahk ead of the president's address later in the week we're back in a moment you packed a record 1.1 trillion transistors into this chip i invested in invesco qqq

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as president biden looks for ways to pay for his american jobs plan, could a retroactive tax hike be in the charts. robert frank joins us now. reading that made me scared, robert >> david, it's scary and kind of hard to ponder but it is a question that accountants and many taxpayers are all asking right now, which is can tax hikes be retroactive. turns out they can and they have been tax changes in both 1969 and the clinton tax hikes in 1993 were both retroactive the gop challenged those 1993 hikes as unconstitutional, but the supreme court upheld those increases saying that back dating was legal as long as it's supported by a legitimate legislative purpose. captain gains tax hike that

would take effect next year in 2022 would create a wave of selling and revenue before the increase, and then a big drop after but if the tax hike is back dated to january 1st of this year, a family or founder that sold a business let's say in february based on a 20% rate could be told later that they actually owe millions more in taxes under the higher rate. that would pose a program for the deal contracts as well as liquidity. mark maizer, the assistant treasury secretary for tax policy and a biden appointee said at a recent conference retroactive taxincreases tend not to be the first choice but could be pursued if taxpayers are given notice, and carl, given that biden has talked about this increase and others in his campaign, they could argue we have been given notice, even though all of this is pretty unlikely but still a big question. >> a lot of big questions,

including where we end up on this we point out, it's got to make its way out of the democratic congress at the beginning and then get to the senate so who knows, but i do know a number of people who are planning on taking large capital gains this year, assuming there is going to be a higher rate how much higher they don't know, but higher and certainly a claw back or what you're describing would disappoint an awful lot of them >> yeah, it's hard to imagine, and that's why we saw that little hiccup in the market last week, but even if we have a lot of selling in the stock market, those are people that just could, let's say, sell their big gain in apple and buy apple again. it doesn't necessarily mean the market overall will decline. it gets much more complicated for real estate, and for selling private companies. which as we've seen, there's a lot of activity with all of those asset classes. >> yeah, that's exactly what goldman's data would suggest, robert, is that equities do take a hit. it generally is short lived, might be a different story for other asset classes.

great stuff, great way to start the conversation with our next guest, by the way, suzanne clark is the ceo of the u.s. chamber of commerce ahead of the president's address to congress on wednesday suzanne, welcome back. great to see you again. >> great to be here. >> so there will be a number of topics that we're going to be looking out for, infrastructure, obviously, and taxes both gains and corporate. is it fair to say you're going to be laser focused on whatever he does say about tax? >> absolutely, i think two things one, we're looking to hear on infrastructure that there is a bipartisan way forward we were pleased to see the problem solvers proposal, senator capita's proposal, there is a bipartisan compromise that would be durable and lasting on infrastructure, and there are ways to pay for that that don't require this big tax increase at such a pivotal time. what you were talking about is scary, and the idea that we're going to punish people for investing in the economy right now just seems outrageous.

i don't think that that could pass congress, and we're going to make real sure it doesn't. >> does it matter, i wonder how forceful you find the argument that capital gains really targets if you believe some of the data or some of the irs filings one-third of 1% of the population. >> i think the data that concerns us is what it does to investment in public companies, what that does to middle class pensions and 401(k)s, what it does to people deciding to go public the impact on the markets and that data is what really concerns us. >> there have been some other industry groups, business round table is one that have thrown out a couple of numbers on infrastructure, arguing a trillion to a trillion and a half would be sufficient to make real progress in the nation's infrastructure some of the proposals we're seeing from problem solvers are a little south of that do you think they need to go higher >> you know, we have been less focused on the size of the

overall package than what's in the package is actually critical and actually infrastructure and what are the pays for. with that combination, we want to focus on good policy first and then the size second. >> suzanne, it's morgan. i want to go back to the capital gains, proposed capital gains increase here. i mean, you just talked about the fact that this would be bad for business investment, and we were started the hour having this conversation. has the chamber ever actually crunched the numbers is there data that exists that shows a correlation between a higher cap gains tax rate and entrepreneurship, business creation, et cetera? >> you know, there is, morgan, and i don't have the numbers off the top of my head but the data is out there that when you punish people for investing in the economy, when you make it harder for people to do that, you make irrational investment decisions and unsound market decisions. we know that's bad for the economy, and we know that's bad for companies, which means it's bad for job creators, and as we believe, it's bad for families. >> just to shift gears a little

bit, and we had this big climate summit last week, the biden administration coming out and basically presenting some, what i think some businesses might consider very aggressive goals, and policy changes in terms of combatting climate change. i wonder how the chamber sees that, are these numbers attainable are they too aggressive from an economic standpoint or, for example, a job creation standpoint >> i think you're asking all the right questions, and what's really important to us is that basis has a seat at the table. the only thing that works is innovation the only thing that works are private sector solutions we have seen our own emissions go down. that's been due to new technology, new innovation businesses being at the table and being able to say, look, we have a climate problem, there are business solutions, technology solutions to this problem and we need to tackle two things at once, which we're able to do, which is to say we need to tackle climate change, while preserving innovation.

>> and businesses have been a lot more vocal on those issues and as well on issues of social justice, which gets me to my next question. suzanne, you joined us, i think, on march 12th. i believe that was your first interview after taking over. four days later, senator tom cotton went on the radio show and attacked your organization i would like you to listen to what he had to say and respond to it if you can. >> they often serve, too, as just as breath service or low corporations trying to pedal anti-american theories and demanding that their employees get reeducated and indock ntrind ideas. >> what do you say to senator cotton's comments. >> i'm not sure i understood senator cotton's comments. e i would say this, it's our job to represent small and large companies, state and local chambers across the country and

to understand what they need to produce growth in their communities. that's who we listen to. that's been our laser focus for 109 years. we had our 109th birthday last week, by the way, and that's been the laser focus for 109 years and we're not changing it. >> and to those who would say, including senator cotton that, you know, you've lost your way because you're siding more often with democratic or progressive causes, what's your response >> again, you know, we have sat at this same table of job creation and economic growth for over a century we have not moved. and we will work with anyone who wants to come to that table and work with us we have critical needs as a country. immigration, we have a worker shortage program, we have big infrastructure critical needs. we have to fight a big tax increase, which is the last thing job creators and families need as we come out of this pandemic we have real places that the business community needs help and we will work with anyone who wants to come to that table and work with us i don't know a single member of congress that doesn't want more

jobs in their district and we're here to help. >> you mention immigration, and we certainly have seen the conversation moved forward a little bit, perhaps, by former president bush, talking about it in the last couple of weeks, it sort of dove tails with the labor shortages that we talk about a lot on our air do you think that conversation on the hill has made progress in the last month or two? >> it seems to have, and i'm glad you focus on it it's the number one thing i see from ceos, worker shortages are the real problem, 7 1/2 million unfilled jobs right now. what we want to see is schools and child care centers reopened so people can get back to work we want to see the suspension of some of the emergency assistance that was out there as these industries open back up, they need their workers to come back, and we do want to see immigration. we need stronger border security, and we need more legal immigration, particularly on the higher skilled areas, so we're pleased to see that it looks like people are willing to starting to be willing to have that conversation and find where

that compromise is because it is holding america back. >> finally, on inflation, i don't know what goes through your mind when you see a chart of lumber, for example, or copper or soybeans or corn, is the general view within the chamber right now that this is sort of a weird period, we're reopening an economy that we intentionally closed and these are not be as acute of concerns in the back half of the year. >> i think we do hear a lot about the supply chain costs and supply chain bottlenecks at the ports, i think it's interesting so see what is the result of reopening, and what will be longer lasting we and our economists, and viewer are watching that carefully, but it goes back to this theme of piling on too much regulation, piling on too much taxation, right now, when this is so fragile is a mistake we need some time to take a breath, come out, have a global health recovery. have a global economic recovery and see where we stand we don't want to move too far too fast on regulation and taxes

and strangle the economic recovery at exactly the wrong time. >> suzanne, we'll see what the president says maybe have you back for some comment on the back half of that, but always good to see you. thanks again. >> thanks vfor having me. as we head to break, watch etsy, down more than 4%, after getting downgraded to sector weight at key bbanc, on its wayt the worst in three weeks we'll be right back. actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential.

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ten-year treasury yields are about to wake up at a look at how far they could go, more "squawk on the street" ahead.

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they get better at delivery guidance for the remainder of the year we could tell the street, they may deliver over 850,000 vehicles, do they do that for us, and the other thing people are going to be focused on, what's happening as far as their capital expenditures, as you take a look at shares of tesla, keep in mind that they've got two giga factories being built right now, one in berlin, just outside of berlin, and one outside austin, texas. this is important, this speaks to the future, the growth for this country, and in terms of the giga factory in texas, that's scheduled to open later this year. that's where they're going to build the cyber truck, the tesla semi, and it's coming along quickly, and the whistleblower -- question is will they be able to produce by the end of this year. adam jonas from morgan stanley put autoout a note about what to expect from tesla. we expect the narrative around tesla for the remainder of a year to be one word, expansion,

no doubt that will be a question, not only from adam jonas but a number of other analysts on the conference call for elon musk. what is next for the remainder of this year for tesla and over the next couple of years, take a look at shares of tesla and volkswagen the reason we're showing you is tesla has had a heck of a run up last year, up 400% look at volkswagen and what it's done in the last six months and we're starting to see other auto makers in terms of their stock be a trade that over the last three months and six months has in some cases out performed tesla. >> yeah, well, gm and ford too up 40% versus 4.5 for tesla this year, but of course $708 billion market value for tesla, still almost 10 times gm phil, you know, longer term, obviously what you're talking about will be the key focus but i wonder, do we expect them to ever talk about their goals in autonomous, and what we can expect in a number of years there, and/or advances in battery technology

some of the key things i know investors are excited about in this company buying the stock now. >> battery technology, i think you may get greater clarity in terms of the development there they're working on their own selves out in the northern california area, and in terms of autonomous vehicle technology. elon musk has said this a number of times full self-driving, the latest beta is delivering promising results. is it to the point where these vehicles can drive themselves wherever you want to go, no, it is not there, and skeptics say it's not going to be there for a number of years. he will get a question about this tonight on the analyst call there's no doubt about that. especially given the accident down in texas, and the investigation that's going on down there and questions surrounding auto pilot, what he is likely to say base dd on listening to a number of these calls, david, he's likely to say we believe in the technology, we think it's going to be ready at some point in the future is he going to put a time line out there? i doubt it he's just going to say it's

getting closer and closer and closer. >> and imagine china's going to come up pretty heavily, too, given the fact that tesla is coming off kind of a, at least from a pr standpoint, a bad week in that key market as well the other piece that's fascinating, if you think it's going to come up as well, the auto insurance piece tesla launched its offering, in general, greater disruption, lemonade announcing it's getting into car insurance too what that opportunity, especially as you do see potentially autonomous driving in the future, and everything that that involves, what that could mean for tesla. >> they have talked about that being the game changer, fact that their vehicles will be safer and, they will be able to show that it's safer, autonomous technology will mean the vehicles will not be making mistakes that human drivers make therefore, the insurance should be reflected in these vehicles they have talked about the great promise of their own insurance as they offer it but because it's such a small, small part of this company, relative to vehicle manufacturing, relative

to energy storage, it does not get much attention on these analyst calls. it may get a question today, morgan, but i doubt much beyond that >> speaking of questions on the call, phil, i mean, people snickered about the snl promo, which was dropped over the weekend, there are probably some people who look at elon mask, yeah behind spacex, tesla a genius i don't know a lot else about him. maybe for what his personality is like and that will show on "saturday night live." or theoretically what should show on "saturday night live" his personality. from tesla's perspective, a great opportunity for them to say here's the guy who created us and this is what we're all

about. >> yeah. trying to think what the last ceo who hosted the show -- it's going to be something to watch, phil on may 8th thanks, phil lebeau ahead of tesla's print tonight. coming up on "techcheck," don't miss palantir's ceo. starts at 11:00 a.m. eastern, and a new deal for moderna making up doses. wednesday, 10:00 a.m we'll be right back. at cdw, we get these new ways of working bring new threats. that's why we started an office commune. not a security concern around for 50 miles. unless you count the wolves. and all the llama milk you can drink. you know at cdw, we can design a security solution using

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welcome back to "squawk on the street." i'm dominic chu. stocks higher starting off the new trading week with the s&p 15 00 within striking distance of a fresh all-time record high redundancy there staples relative laggards from a sector perspective stocks extending year-to-date dominance up more than 20% start of 2021. within that financial sector in particular, seeing notable gains in credit card issues-type banks. discover financial a fresh record high of its own after upgraded to buy by analysts at bank of america.

american express, capital one moving higher. good moves worth noting, capital one among the top gainers in the sector year-to-date already at 40-some percent. and strength in banks especially regional ones. heath corp., fifth third bank among others credit card issues banks and regional banks check those out back to you. >> thank you. april, meantime, financial literacy month cnbc committed to sharinging about the importance of financial information. here is gary bennerchuck. >> i think we need to completely revamp the education system, and we have a macro system that forces many to go into debt for higher education, which is supposed to give them a diploma. that collapsed in this modern generation we're completely delusional in society setting up kids for

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latest team of astronauts arrived at the international space station just after 5:00 a.m. eastern saturday morning. following another historic space x launch friday utilizing both a reflown rocket and capsule the four members of nasa's crew 2 mission entering the orbiting station. autonomously docked. now -- it's cramped quarters with 11 onboard nearly double the typical number. biggest crowd in more than a decade sleeping arrangements getting creative as well including use of those two space x dragons attached to the iss now. it won't last long as four members of the first operational spate x mission crew 1 in space since november come home on the resilience capsule wednesday a splash down expected to happen in the atlantic ocean or gulf of mexico around 12:40 p.m. eastern. keeping an eye on that, david. meantime, elon musk over the weekend --

>> wait, wait. sleeping arrangements getting creative interesting. >> temporary sleeping arrangements. >> who knows could be a reality show. >> sleeping in capsules. elon musk getting ready to do "snl" on may 8th. >> should be fun. >> so much to talk about there with him meantime, a busy week. does it for us here, though, on sks sks. "techcheck" is going to start right now. ♪ happy monday welcome to "techcheck. i'm jon fortt with carl quintanilla and deirdre bosa today tech put to the test as big week of earnings kicks off alphabet, microsoft, facebook, amazon, apple on deck. apple's controversy privac