our children that is a good starting point for me >> it is a longer debate and conversation but we appreciate having you senator. that does it for us today. make sure you join us tomorrow "squawk on the street" begins right now. ♪ good tuesday morning walk to "squawk on the street. on carl quintanilla with jim cramer and david faber ups, tesla covid deaths the lowest since october. and begin with the earnings gone led tesla lower, ups higher and the faang names are on the way. >> and ge shares under prern the company reporting that

revenue came in short of expectations free cash floe was better. we'll dick it into.w was better. we'll dick it into and wall street's losses on archegos topping $10 billion we'll breakdown down the latest brokers and banks they are part of that took another financial hit. >> so much to unpack this morning. jim, e feels like tesla is the lead only because of the ongoing debate about revs up 75 but asps were lower the sap of the tax credits and of course that bitcoin sale. >> i don't know. you know i've been a big fan of mu musk and i think he's done lot of things right. doing things i wish'd he had done, to make protectionive projections he's going to have the biggest car. you know that would be pretty hard to do

unseating toyota it is also very easy to see they almost had no ebitda this quarter. and that is not talked about enough we talk about making a lot of cars but adjusted ebitda, less stock in credits is almost nothing. >> yeah. but that doesn't seem to be something that impacts investors' perception of the stock or the ability of the company one day to create eno enormous cash flows. >> like sam girard i don't care i expected more. >> you may not compare care. it doesn't really matter if the majority of shareholders are unconcerned. >> true. a majority of shareholders were unconcerned in worldcom, david i mean, you know. >> ooh. >> i'm just saying this is not the quarter i expected and it is not the quarter i would goen as sound. >> and that was because of what though specifically? it was simply the lack of ability to generate ebitda >> yeah. >> look, listen, they were

dealing with a difficult supply chain challenge. -- shortages strongest numbers they have ever seen in this quarter this quarter. >> they have to deliver next quarter, next year, he set himself up to beat toyota. that's what i'm -- you know, i just think you can set yourself up to beat toyota. he's got a head as big as his car. going on "saturday night live. he was i felt -- he was beginning of his call and i wish he'd go back to where he was for a while, which was nose to the grind stone. why is that so bad. >>ing there to hear you be so critical. >> i have to be somewhat critical that was not the blow out quarter. this was a very good quarter versus what others do. duh david, do you see the amount of money that a gm in ford i know he laughs at these other guys i know he thinks these guys are dinosaurs. but dinosaurs can rule the earth if they come back.

i have to look at what gm are doing. i don't think they are dead anymore. >> you are not alone those stocks had a strong year over -- so far roughly both 40% each. and part on the prospect for and the promise of delivering on their ev strategies. >> look, i love tesla. i'm being critical only because i expected them to make more money. and i was surprised when he made claims he better deliver. austin better deliver and berlin better deliver if they deliver then my comments are too harsh. >> bell selling car or truck anywhere in the world in 2022. >> that's a hard goal. >> i know we were going back and forth with phil on how to that would work i see goldman's taking them to 780 -- no. to 860 from 780. and the supply chain worries which bedevilled the entire

injury here is musk last night. >> q one some of the most difficult supply chain challenges we've ever experienced in collective tesla. insane difficulties with supply chains over the whole range of parts. about the chip shortage. this is a huge problem >> interesting to hear him frame it that way, jim a whole range of parts it is no longer sort of the specific chips that give you, say, a digital gas monitor, for example. >> yeah. his cars are packed with electronic, which of course is terrific it makes it so that i've always said the a technology delivery system i've been asking executives, why does china not have a chip shortage with their cars david, why is china kind of not sweating the program >> well you have told me, jim. because i listen -- i do listen

to you it is because they double ordered everything >> right well how about -- no way you can cut those back, huh? give some to america >> i don't think that is going to happen. >> no. and that is why we have a chip shortage i think china, i'd love to know what elon is thinking about china and the assembly there there was way too much time in this conference call about solar panels, carl >> why is that a problem i'm used to really great calls from this man. you think i'm splitting hairs? i don't even have any. there. >> carl do you want to weigh in here >> carl, i was talking to you. >> you know i'd help carl help. >> we were on set i'd have just looked at you. you would have known

but yeah >> we're going to get to those -- i've declared war against them they are ridiculous, the meme people. >> jim, two different points one your point about china and how they are viewing tesla now is a big question on the street. yesterday asking whether or not the negative coverage there sort of a tipping point in the way china is championing some of the younger domestic playerers and this exchange between portnoy and musk about the bitcoin sale, jim. what was your take about that? do they deserve to sell 10% to prove it is liquid >> i don't buy that. but the fact is that he didn't sell any himself, which i think does matter. i wasn't against anything he did bitcoin. but i will tell you when he called me a hologram at that dinner the fabled kinner. >> here we go. coming back to that now. >> he used the same example. >> he didn't say hologram. he said you were -- what were you? i'm forgetting you the word he used are you as well?

>> i was a creature of people's vision i wasn't a real person. >> you weren't real. >> but david, he used that exact same example, where he said soon there will be a place where there is solar -- one place. and all of america will be powered by it. well david, it is now seven years. >> understood. >> and what's happened? >> we're not there yet. >> we're not there yet still companies like -- and duke you know, hey. >> yeah okay but we are actual moving more towards that we're moving in that correction. i understand the man has been very good at outlining a long-term vision, getting people extraordinarily excited about it, attracting enormous amounts of capital so that he can actually try to deliver on that. >> i agree with that i agree with every one of those points. >> right. >> and the cash flow. >> he's going a great promoter and great entrepreneur do go to together often times.

>> see this? these are numbers. whats the direction. >> they are not going up long-term he also says it is going to be robotics as much as a car company or energy company. >> i do like that. >> you do like that. >> i like the future i just think the tesla to toyota gauntlet, as phil said, carl, i have to agree with that. why do that? the "saturday night live," okay. so we -- >> you were a simulation, thank you. >> i was a simulation. and fortunately brian was there to comment how it was -- but carl, he did use the same example of the giant solar field, you know, solving the whole country's energy problems. >> he's a ceo who promised a million robo taxis on the ground by this point. obviously he likes to overpromise. i do want to get you more

broadly on the earnings picture, jim. s&p companies are beating by 29%. exfinancials beating by 12%. that is a lot better than the typical 5% beat that we get. and yet today, few companies either are reiterating guidance, not boosting guidance or in the case of ups, not giving guidance at all. >> 3m disappointing, i would have thought -- absolutely, les be clear about 3m. had they given a forecast they had great organic growth because they didn't get a forecast -- well they give you the same forecast as before. now, ups, i've been out of it that they would have the quarter of a lifetime. that it would happen that all the nay sayers would have to have a real -- you had to put the wood to their heads but no they kept doubting her. and doubting lot of it is sexism, david. >> is it >> yes. >> okay. i buy that. >> and up 10% year over year

700 basis point improvement here for unit cost. absolutely margins, 10.4%. that's extraordinary >> and the market is responding as we speak. up almost 9% at least it appears to be. ups had a great quarter. >> and here is what he did everything she promised. but do people pay attention when she was on "mad money" with goals? no they sniffed they did nothing the stock went down. because they doubted the former cfo of home depot kicking butt at ups -- they doubted carl this is opposite of musk okay it is the opposite of musk. >> it is amazing average daily volume up 14 opera net, 400 basis points above estimates. there are some people asking why the analysts have been so far off the mark, at least on some of these not just eps but internal margin estimates and revenue unit estimates they have been blown away.

>> she put them to shame every one of them has to look in the mirror and say what did i co-wrong and the male ones all to think about exactly what happened here >> that's really interestinger you are going down that road. >> i am. sexism this i " this is a man's business. had a man said it on "mad money," the numbers would have gone up but no -- >> something to keep in mind for the future then. may be opportunity there. >> i do. look at williams sonoma. piece saying look this is pretty good company laura al ber another one. >> l lisa sue though. they will listen or no >> stock is down 10% people forgotten because of pat elsinger. >> came in little angry today. >> yeah i am a little angry,

frankly. >> okay. anything else you want to tell me about or share? was it just elon musk? >> i know why's angry, david. >> tell me. >> i think it -- this tweet from to you jim sort of gave it away. you talked about twitter, that you had blocked every person who engaged with you over i they whole day. and i think in your words how worthless has this place become? is that a part of it >> yeah. i mean, the only person i didn't block was someone who had a cat picture. it is all these diamond not -- whatever they will just do anything to derail you fire him he's too fatty i don't like that one at all i've been working out like a demon. he's an idiot. i went to harvard to get stupid and then i went to harvard law to get stupid. he's obviously stupid. how many times can i get called stupid before i say you know what, this bothers me. even someone with thick someone has to sit there and say, you know, i'm a crook, a hedge fund,

dupe a toady. enough already grow up. >> you might just want to get off the platform i want to let you know this is a safe space for you you know that. there is nothing but love here for you. >> safe. >> nothing >> safe text we're not going to read things -- >> right here. carl identifies. i am done. i'm the guy who likes to respond to people. >> i know but you just can't -- let those people get you down. i get. >> it nine million people of this wall street bets decide that i hate adam aaron, okay which i don't. i love him no one him from abington high. went to springfield. i've offered so many solutions for gamestop the bitcoin. 5,000 stores ought tab into the places to buy crypto and take over the dark areas of the mall and open up giant gaming facilities and the winners get paid in bitcoin. and no they raised 550 million.

do i get any credit? no i am a hedged fund toting stool i'm a stool -- i'm not happy. >> i understand that but you just can't let'em get you down >> no you're right. >> i can only imagine. i said this to jim many times, carl the heat that i got over that one stock, cciv. >> oh my gosh. >> and the vitriol he deals with that every day every day. >> from one day it was okay. and then they had that picture of the -- >> takes positions on things and ticks people off one way or the ore. >> i like gamestop. >> i'll give you one more chance this is ge not a great quarter -- take a look at cciv which is still doing all right. obviously down from the high 50s. proud of the solid first quarter results. cash flow. 1.7 billion improvement year

over year. revenue 17.1 billion aviation still a real drag and not clear where things head in power. what are your -- >> mixed mixed. i think that healthcare isn't so bad. >> yep. >> and that was a saving grace >> i think aero is -- you got to get back to travel again, ratheon, diversified. went into defense -- talk about that later because i got a real rap on that. >> although you were better off buying otis carrier. >> but carl when i look at ge, i see healthcare being a bright spot wind is no longer bad. wind is coming back because it is a favored way for president biden. also because it is not expensive. but i keep coming back to aero and carl aero is just a bad line. >> aviation. >> aviation.

yes. right. honeywell was stung by it. and i thought honeywell was going to be perfect, carl and i was wrong. >> 26% down in orders, carl. so >> no no i was going to say sequentially the worries seem to be organic orders down eight. prior down three industrial margin five one, prior six four so it is not a as encouraging as we got in q 4. >> no. i got to tell you. i feel that ge is still a turnaround but if erp to get back to flying, we would say why didn't we buy ge at 13 and honeywell at 20 but i guess we got to take ratheon later. i am steamed. >> you have made that very clear. >> carl got it. >> no not to worry. >> -- hands. oh you children. like i beat up a kid i beat up shelby on my way home.

and my mom said i had to apologize. and i did. >> jim has to deal with things i think david you and i can't even imagine. we're going to get to 3m and ratheon. couple downgrades of verizon and splunk tax debate continues and the vaccine and covid in the s.u. fewest deaths yesterday since october. we're back after a break ♪ ♪ ♪

♪ ♪ ♪ ♪

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tonight breaking down the cdc's new covid guidelines expected today plus britney spears back in court as a judge reconsiders the embattled star's conservatorship. six and a half minutes before we get started with trading. of course even more earnings to go over. let's get to a mad dash where you are going to deal with some that have as well. >> we talk about rate job. the base of the old united

technologies >> shareholders benefitted to be fair you got carrier, otis. >> it is why i love ed breen. >> right. >> but this is incredible. what happened here david is defense is very strong why is defense very strong they do the stuff that is going to stop our biggest enemy. in the cold war. >> russia, china. >> russia? what are you nineteen -- 1949. >> -- toe to toe with the ruskys and nuclear combat. >> -- stop it. >> sorry. >> it is about taiwan and are we going o -- >> right. >> -- space. anti-missile i think there are people in the defense department worried about

the existential threat what happens if they take thailand. and the supply chain to china and the semis from taiwan. and the chinese have been saying over and over again that taiwan is a part of china but now they seem to be making it so it is going to be irrefutable. david that could be -- >> that would be a very bad moment >> yes it would. and you know what, if you are japan and south korea, equally as -- >> yes. >> that's next so this company has what we need in order to be able to make it so they can't attack thailand. >> how i learned to not worry and love ratheon >> well there is no fighting in the war room >> good movie. all right coming back with an opening bell stay with us

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meaningful progress, as we now have 11 day of week on week case declines. and 54% of u.s. adults with at least one shot >> look, i think that if you are domestic, you are going to crush it next quarter. if you fly to vegas, you are going to crush it. if you fly to florida, you are going -- that's jet blue where you are not going to crush it is overseas i booked italy last night. i paid half of what i paid 18 months ago half. >> for when? >> when to go. >> the last week of september. >> nice. i'm going to look into that myself >> you should book them now before it goes crazy. >> i'm going to look into that >> what about the opening trade overall. i ripped for a while and then backed off a lot how much related to the yield as well where we were watching that go up and obviously not high growth companies typically. they were benefitting from that. but then inflation calmed down the yield's come back down and now going back up a little bit.

>> extraordinarily when yields come down. i'm doing a piece tonight on dividends. should make stocks more attractive >> opening bell. nyse and the nasdaq of course. we'll see how the market absorbs a flood of information and a lot more coming later on tonight as we said with microsoft, google, visa, starbuck's, adam many, d d others >> you know, again we have differing views although i think we're also saying similar things when jim and i talk about business travel and our expectations you have customers, you may feel an obligation to get out there, if they will let you in the building but i also think internal travel is just not going to come back to the levels it was

you are not going out three times a year to see everybody in japan the way you might have previously maybe you will do one trip around maybe even not because zoom has proved to be a pretty effective way for people to connect. so jim, i think it is still very much uncertain you do have these company, i pointed out a few that have banned travel for the remainder of the year still. surprising you would say something like that for a year that still has so many months left to unfold and for thankfully numbers we're starting to see in terms of the decline of the virus nationwide al know not necessarily around the world. s of space, business travel. still got to really question what normal is going to look like. >> i'll tell you what normal is going to look like okay normal is the stock of otis. judy marks if you are vaccinated you are going to see her and the numbers were extraordinary. carl the discussion s "are you

vacc vaccinated?" yeah i'll be out there tomorrow that is what's happening. >> i think that is happening to a certain degree and if your competitor is paying a visit to somebody, you are going to feel only gaited to do the same >> is bernadette open for business >> i think so. >> then there is going to be travel. >> mid town manhattan. still 15-20% in terms of workers coming back, jim 15-20% it is almost may. >> people working from home. >> businesses that rely on people coming into the centers of cities in not neighborhoods. which are thriving, but the centers of cities, there is nothing going on still. >> houston, atlanta, dallas. >> even their -- the business center where people go and show up in a building >> but i think carl, one of the things i think that we're missing is the country is in an odd ball place you are not supposed to ask whether people are vaccinated.

we don't have any paper. i have this piece of paper that i got from staten island says i got moderna. i actually need a little more than that. >> can get the excelsior pass. >> trying to get the excelsior. >> do you have it. >> i visibility done it but if i want to go to a nick nick game or a met game it is going to be helpfulknick game or a met game it is going to be hel helpful. >> there is really a lot of idiocy >> you are right jim we're definitely in some chop. i noticed washington, d.c. starting this saturday no appointment necessary for a vaccine. and some of the city-run sites i did notice a week from tomorrow is cinco de mayo and we talked about your open your restaurant on that date. is that still going to happen? >> umm, if the insurance company gives us the get go. because everything, when you get a moth ball. all your contracted ended.

i molt ball. and so farther i put in the system that we need. i i think i'm ready but it is not in my hands. do you know why? company likes hartford have so much business, carl. the insurance companies are leaning up here. i think hartford is going to have monster quarter because there are so many openings going on of the small and medium sized business it is an amazing time to be in the insurance business. >> what you learned from your interview last night with the ceo of -- >> exactly >> okay. >> well maybe you want to ask -- >> did he say anything about chubb and the bid for the company? -- >> i said he was out to steal the company. he said well you said it he didn't say it he was a diplomat. >> we do have his thoughts about the recovery >> we to do? >> yes let's take a listen. >> i look at where we are today and i where i see the future going. you can't help but be

optimistic the pandemic is beginning to recede, deaths are coming down the vaccination process is going relatively smoothly. and it all points to a recovery. particularly in small to mid-sized businesses that's our sweet spot. >> yeah. restaurants popping up all over, david. the competition suddenly appeared the flowers are blooming the competition is there so many restaurants and stores opening in brooklyn. you would think it is 1921 when a lot of places were, you know, worried. >> yes well it is the20s again. >> it is the 20s carl. >> the roarsing 2020s and the competition is incredible. i thought they were all gone. >> you are right about small business creation has been pretty resilient in the face of all this

we got, i think we had more than 2.1 million subway riders in new york city yesterday. that is a postcovid high but we definitely need more people as david says in city centers and taking the train the other thing that's taken a little bit longer jim than we thought is movie production and that is sort of weighed on hasbro's results last night. >> yeah. you know, i compare hasbro to ma tell.matel you have a guy from matel, from the entertainment, the movie biz and then a guy who is really from the toy business. he leaned all the stuff that is really basic mattel.

so i think the entertainment no go and what mattered is --look has bro is not doing badly >> not bad at all. still almost double the market cap of mattel but he's closing the gap. >> i just think he's doing a lot of things right and brian is doing okay.

>> the alzheimer's drug, i still believe in it and you have to take it very very early. but i also thought the ax covid out it is good hard to ax but the they ax covid out it is good should not be down that much what are you looking at? >> looking through some of their numbers. >> -- >> top line. say a lot of it is covid. >> i heard you i heard you. just further looking inside the earnings trying to perhaps come up with another question for you. but i can see you want to conclude the discussion. >> i feel we should 3450u6 on. it was a disappoint. david came on the squawk and david's got some answering do. david came on "mad money" and i would have thought all was good. and that was during the vaccine period i'm really critically today. >> reclet me get you back to tea today. >> i like my kids.

like my wife. >> -- down about 2%. jim. >> -- my fault. >> new yoo, i would argue differently. in fact it is holding its own given the vitriol with which you -- >> maybe drops a dogecoin reference. >> something about that "saturday night live" thing. >> i want a plow out quarter before i go on "saturday night live." you need a blow out quarter. you can't dance and sing without a blow out quarter. >> and he cannot dance like fred astaire. he can barely dance at all. >> but he's going to be on "saturday night live" after a quarter that was just okay and he made -- you know, he's declared war on toyota without even realizing it. and the call david we spent a lot of time talking about, you know, panels, whatever and and eoyour point is once you take in a count, the ev rebates,

the bitcoin gain, you don't really like the way the ebitda looks. >> no. no i don't you see but that's involved doing homework i regret that i did the homework because i could have come out here and --. -- hasbro. it's okay to be disappointed when everybody loves something it's okay. >> i hear you jim. >> i mean -- >> -- this morning >> i -- go ahead. >> that don't involve earnings remarkable piece in the times about mike isaac about how exactly tim cook and mark zuckerberg became foes traced back to a conversation cook essentially told zuckerberg they should find a way to delete the data they collected under cambridge and now it is a real thing with ios and consumers opting out and the advertising

model concerns in facebook >> i got the gist of that. i read that to the last paragraph. and that is a must reed. and basically tim cook is saying at the end they are not even a competitor i mean, wow. he is just so dismissive of facebook and when you ask about it, he says look, what would you do he said i would never be in this place. that article is about a guy who wants your information versus a guy who is saying you should have ever right to deny someone your information. >> well it is a guy whose business model is dependent upon having your information and a company that is not nearly as dependent on that. >> what did you think? >> what kid i think about what >> the article >> oh i think these two are at each other and it will be very interesting to to watch what resolves. >> yeah i -- >> we know they are at each other. they have been at it for a while now. >> carl i read it and i just said that you know look there was obviously a good guy and a

bad guy, right i mean unless you like your information given to prokt gammble. and tim cook is giving us ab opt out, in the new ios. >> yes you mentioned that and musk is no no astaire >> and 3m is the worst down name at the moment. bob pisani >> it is ptough to move forward. ups blow out numbers breaking sort of the flat. slightly defensive sectors

consumer staples better at the open techs on the flat side the stories about earnings because the reopening story is now very evident in the opening commentary vale, heavy oil demand around the world. they are raising prices. bp higher oil prices profits were tripled a year ago. maersk surging demand worldwide. in terms of the board, carl is right. its taken a lot to move stocks forward because there's been expectations still pretty good and they were. so vale, for example, put up the prices here. new high maersk doing okay. sherwin williams new high yesterday. that's not doing much.

very good numbers but hard to move the dial forward when they are expecting that another group of stocks here archer daniels midland reporting surge in demand for grain prices modest move up there 3m not doing much but they had great numbers. they kept their full year outlook unchanged. i think a little disappoint on the guidance there united parcel service did not give guidance. oddly enough declined but the beat by a dollar was so strong you see we're pushing it to a new high. ups one of the few really moving forward on strength of earnings. where are we in earnings season? >> we're about a third of the way through. if you include everybody today about 153 companies reported already. 88% of beat estimates. what matters is the huge number beating way above the estimates. a few days ago was 20% it is still in the 17% range given that you have a third of companies reporting. historically they normally beat

3-5% with a third of companies they are beating by 17% that is a testimony to how much companies are still surprising, the analysts are still too conservative here is the most important thing. 60% of the companies that have reported so far are seeing their second quarter earnings estimates go up. that's what we care about. second and third quarter are the estimates rising, yes? and they are rising at a faster pace than the last quarter rate of change for earnings estimates is going up. that is what's powers the stock market forward here is is other thick that powers the stock market forward. margins. blended profit margins for the whole s&p so far 11.6%. third highest since they began tracking margins in 2008 remember all thee concerns prices are going to go up. they are not going to be able to pass them on they are so far. this is expected to hold above 11% for the rest of 2021 that is the main reason margins continuing to hold up and

earnings estimates continuing to rise that's why we see the s&p 500 at a new high and guy, so far this is turned out to be exactly the way the bulls predicted pass on higher prices and earnings estimates rising goldilocks so far. we'll keep an eye on the rest of the year back to you. >> all right, bob. thank you for that bob pisani two day fed meeting begins today. also the 10 year anniversary of the very first fed press conference to rick. >> and i'm sure the world is much better off because of these fed press conferences and the contagiousness all the other central banks have had certain issues like inflation it is very hard to understand how they are going to combat some of that temporary higher prices they expect down the road. we'll get to that.

a two day of 10s we're consolidating, building on yesterday. if you open up month to date it jumps out at at you. april pretty much yields have been coming down but we're starting to turn and it isn't really that we're seeing an aggressive buying and retracement of the 174 high closing price yields which is currently the cycle high yield low price what we're really seeing is just a backing away. a taking off of the gas. it is not an active retracement. it is more like a passive time out. and if you open a chart up to spring of 2013 on break evans, which is the relationship between treasury inflation preekted securities and nominal yields you will see it is a tallest level since spring of 2013 call it eight years. this is very important to pay attention to and stick with the team. the crv index year old to date look how aggressive its been three and a half year high so the fed and mr. powell and

company will say temporary temporary temporary when it comes to inflation but the crv and commodity prices are heeds up again listen to what bob said. new car prices, used car price, lumber, steal green and this is only partial reopening when it is temporary and shows up are people going to trade like it is temporary squho who knows what's around the corner and bulling on yesterday's lows. and yesterday's low were the lowest intraday lows since the third of march carl, jim, david back to you. >> rick santelli >> we're back in a minute.

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percent of tax filers made more than a million dollars a year. so i want to start by underscoring this in simple terms. this change will only apply to three tenths of a percent of taxpayers which is not the top 1% it's not even the top one-half of one percent >> the national economic council director talking about the capital gains tax issue. we have capital gains issue, corporate tax issue and now this pitch to give the irs more money and authority to close the tax gap. >> i think the latter is terrific it's our duty to pay taxes and a lot of people have skated because they don't have enough people i'm okay with the capital gains because it is limited to the rich, and some people say the super rich corporate tax thing, i don't know corporate tax cuts produced a lot of jobs and tamerlin tsarnaev tell you, i think they have been kept low i do >> we don't have time.

listen to the music. the entrepreneur who has built a business over a long period of time and only taken a salary of 150,000 a year in part in tradeoff for the significant ownership of the business and then sells it, it's going to apply to them. >> well, they're lucky people. and if the rich are unhappy, it's their own fault you said it. you said it. >> lennon. >> yes >> thank you >> that's a good line. >> we're going through all the classics today simulation lennon, jim. by the way, tomorrow is going to be an amazing "squawk on the street." the ceos are going to join us with boeing, spotify, amd, starbucks. that's all tomorrow. make sure your join us for that. "squk t see ibaawonhetrt"s ck after a quick break.

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we went a pit long this morning, but what's on "mad tonight" >> we have sentino on tonight. i want to find out what's going on centene. this is a good sector. i'm sorry if i was so angry, carl i'll go take some xanax and be a

better boy >> i like our viewers understand, and they told me to tell you that you're very good >> well, thank you >> at what you do. we'll see you tonight. >> jimmy to the moon >> "mad money" tonight at 6:00 p.m we're back in a moment with mike roman from 3 m don't go away. do you struggle with occasional nerve aches, weakness or discomfort in your hands or feet? introducing nervive nerve relief from the world's number 1 selling nerve care company. as we age, natural changes to our nerves occur which can lead to occasional discomfort. nervive contains b complex vitamins that nourish nerves, build nerve insulation and enhance nerve communication. and, alpha-lipoic acid, which relieves occasional nerve aches, weakness and discomfort.

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good tuesday morning i'm quintanilla with david faber and morgan brennan mild losses to start this tuesday even as the market is fielding a ton of pitches on the earnings front a lotmore to come after the earnings bell tonight. in the meantime, consumer confidence rick santelli. >> our april read is hitting the wires stronger than expected 121.7. that's about eight points higher than we expected that's the best number since february when this index was at 132 and change if we look at the present situation, it's at 139 which is what, 29 higher than the last look at 110. and what coming down the road in the form of expectations, 109.8.

now, that's an interesting one because that's not far off from our last look at 109.6 let's remember, expectations is the hardest to cal braid at this point, and richmond fed hitting the wires. this is an april in your opinion as well. 17 we are expecting a number around 23 so even though it's the best of the year, december's was 19, it is a bit of a disappointment we see that yields are slightly elevated but you want to pay attention on tens to 161. and we have 62 billion seven-year notes hitting the streets at 1:00 p.m. eastern today. morgan, back to you. >> which we know you'll be watching very closely, rick santelli thank you. may i say our show team is crushing it with the music lately here are the three movers we're watching ups surging after briskly waiting on earnings. -- beating on earnings a 14% increase in volume from a year earlier as e-commerce

continues to boom. you can see shares up 11% leading the s&p. dow component 3 m topping estimates. ppe. shares are falling this morning nonetheless. down about 3%. we're going to speak with 3 m's ceo mike roman later this hour lastly, jet blue beating on both the top and bottom lines echoing other airlines saying it is seeing a rebound in passenger demand. david? >> thank you of course another big story we're watching this morning is tesla out with the latest quarterty earnings the stock down about 4 % worsening early losses let's get to phil for the numbers and a lot more details phil >> a little of something for everyone in the earnings report. the skeptics will look at it and say not the greatest quality the bulls say look at the automotive gross margins the three big numbers behind them posting better than expected earnings with a profit of $0.93 a share the automotive gross margins,

strip out the zep credits, the electric vehicle credits, better than expected margins. but the zeb credits and bitcoin sale help them swing to a profit strong demand in execution that's what musk was talking about as the first quarter was more active than tesla usually sees >> we've seen a real shift in customer of electric vehicles. the demand is best we've seen. we're used to seeing a reduction in that in the first quarter and we saw an increase in demand so that exceeded the normal seasonal reduction in command in q 1. >> a lot of that demand is for the model y. that's the crossover utility vehicle from the company elon musk predicted during the call the model y could be the best-selling vehicle, vehicle worldwide next year.

that will be depending in part as they ramp up production >> both texas are going well we expect to have initial limited production from the factories this year. and production from texas next year >> that's the outlook for the twofactories being built that are expected to open later this year look at tesla versus the s&p 500 and we're showing you this since the middle or late december, december 21st, that's when tesla joined the s&p 500 and there you go, guys a sense of what the stock has done since then. shares of tesla down about 3.5% so far today >> phil, thank you joining us now is full cycle founder, also an early tesla investor thank you for being with us today. >> my pleasure good to see you. >> you too we heard phil lay out highlights from the earnings results yesterday.

given the fact that it's falling flat, at least -- well, more than flat. the fact the stock is down and falling flat with investors today, i wonder what you think about the results. >> well, i mean, i understand the need for all of the hyping of the company right now they lost their -- they're losing their first mover advantage. all the car makers are entering the space. the fact that the audi, the plant that the model 3 is the number one selling car in norway says when consumers have options, they're not just picking tesla. so what co-do you do when you're trying to stay relevant in a field that's about to be crowded and you're losing your first mover advantage? you have to start creating maybe identity and community around the brand. which i think what tesla is trying to do right now is keep it edgy and interesting. that's why i actually think partially why they invested in

bitcoin which con tuesdayed me as a sustainability investor why they would invest in something that is carbon intensive while they're trying to be the face of clean tech which i'm grateful for obviously as an investor, but confused me. >> yeah. and i think the fact that you did sell some of the bitcoin in the quarter helps to power the bottom line as well. does that mean that you think that tesla could be steering clear of bitcoin and crypto currencies in general? >> this is extremely carbon intensive application, and investing in solar which is great, they did this fantastic vertical integration where they did solar panels, battery storage. you can supplant the dirty grid and make sure your power is clean, your car is clean et cetera, and then invest in probably one of the -- what are the numbers, something like bitcoin mining is the equivalent in energy use of a country like

argentina and sweden we're already behind on renewable energy integration worldwide. we don't need one more additional space for nshlg to be used up. we're already digitizing everything this is a problem for a clean tech company as far as i'm concerned. >> you know, it's one thing for the other players to start to catch up and take sand from the sand box as you point out. it's another for a government to actively champion the local players they have and that's what the street is wondering if china is doing is that what's happening in china right now? >> i mean, i can't really speak to china i know the white house today required the u.s. grid to be -- to have 80% of the power coming from emissions free sources this morning. i think that's very exciting, because as we know, the transition from a high carbon to low carbon economy which includes obviously electrifying

the transportation sector and the energy sector, you know, having carbon free energy sector, upgrading all the infrastructure to their twenty-first century counter parts, that's probably the biggest investment opportunity in history as we transition that so i am very bullish about what we're doing in our country here where we were falling behind as we were championing expiring sectors in the past like coal which fortunately i'm sure you read that the coal unions now are also championing a low carbon future as well. so this administration is getting us ready to capitalize on what will be the biggest investment in human history which is upgrading the infrastructure from the 19th and 20th century high carbon intensity technologies to their twenty-first century low carbon counterparts >> coming back to the quarter itself at tesla, our jim cramer in the last hour was making the point that from the actual

business was down, ebit. i believe tesla made for money from trading bitcoin this quarter from the business. is that a concern? >> of course it's a concern to me the bigger skrn that when all the legacy car makers enter the ev market, gm has 30 models coming out by 2025 20 of them will be sold in the u.s. alone you know, audi, mercedes, 53-inch dashboard screen that's going to make the tesla 17-inch screen look like the first generation iphone, but all the big legacy car companies that are buying the environmental credits will no longer have to buy them so that 400 million and change that comes from selling these environmental credits is going to start disappearing over time as the legacy car makers no longer need to buy them. that's a problem for tesla and the valuation. >> before we let you go, to expand this out a little bit especially when we start getting into things like autonomous

driving, which i know tesla is moving toward. you also see a name like, for example, microvision this week which has been going crazy in terms of the stock chart it's done a little bit today but some major runs over the last couple days it's focussed on lasers for lidar. how would you assess more broadly some of the technologies and players involved and who could be potentially winners and losers >> as tesla loses its first mover advantage of being in ev, there's a cross roads coming up. is it beta max or vhs, lidar or vision tesla is betting on vision and everybody else betting on lidar. i think everybody should use both tesla didn't choose lidar because it adds money to the cost of the car. since they picked vision which requires getting a lot of data, millions of cars need to be on the road to collect the data,

there's a company out of israel started by a palestinian/israeli that improves on vision technology which doesn't require them to spend the next years and decades collecting the data to improve vision technology. we'll see where the technology ends up forking, but with this imagery technology out of israel, i think vision will have an edge. without that, there are going to be too many fatalities, i think from trying to collect the data. i'm not going to put my family within the first couple million sample person sample. >> something we're going to talk about a lot more, i'm sure thank you for joining us today >> thanks for having me. it's good to see you all you too. as we go to break, here's a look at the road map for the next hour hasbro, some so vid delays

millionaires battling over space. bezos protests nasa's moon lander contract to elon musk's spacex industrials are in the spotlight. we're going to have an exclusive with 3 m ceo mike roman coming up a bit later in the show don't go anywhere. we're right back after this. i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ visit tdameritrade.com/learn hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this...

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hasbro beating estimates revenue short as tv and movie production related to toys have been delayed by the pandemic joining us this morning is hasbro's chairman and ceo. brian, thank you for the time. >> nice to see you, carl >> these production delays are making a couple headlines. it does sound like you think it will be made up for in the back half >> yeah. it was a comparison to a year ago when theaters and revenues for coming in and we had said that we expected the first quarter to be the most challenging comparable we're already seeing the momentum in the business, television deliveries and production going on. our film business is now in production in fact, we have a big dungeons and dragons movie in preproduction and a transformers movie coming and my little pony

film it's coming. we expect a full year revenue growth >> in the meantime, consumer products up 14 franchise brands up 24 is there any sense -- i mean, remember when we talked last summer about everybody being at home and looking for entertainment in the living room games would be part of it. is there a sense that games and toys suffer to any degree if we spend more time out of the house? >> no. we really are seeing a continued acceleration of the business in fact, several categories that may have been a little more muted a year ago are accelerating now our nerf business was up in the quarter, and eos was up strostrongly e-come was up 70%. i really feel that -- and we're seeing across the multiple product categories that our brands are performing incredibly strong >> from a competition standpoint, what do you think i

guess represents the most competition for hasbro's products moving forward. is it the road blox and epic games and the like >> we're really driving on multiple fronts informal earlier this year we announceder with going to operate with three segments we were operating when we showed it to investors and analysts our wizards of the coast business and the fantasy gaming business is really accelerating. it was up 15% in the quarter but we're about halfway over a 5 -year period of doubling the business of our wizards at the coast business with the g gathering and dragons. and our arena business which is magic online really accelerated in the quarter at 24% growth and it's complementary to that tabletop trading card business our consumer products business as well as consumer products licensing up in the quarter.

and e-one is developing content around 30 hasbro it. we said bringing together all three of the businesses a orchestrating them will see the kind of growth we're expecting for the year >> what are you seeing in terms of supply chain bottle necks how is it affecting you, if it is, how quickly do you expect that to pass >> yeah. we have seen some challenges on containers and supply chain increasing costs we've been mitigating the costs successfully the team has done a great job. we've announced second half of the year price increases to mitigate the cost increases. we believe we can maintain the margin this year as we did a year ago at about 15%. and we expect margins to move ahead over the medium term as we continue to move beyond the pandemic and some of the short-term price increases on

transportation that's interesting i mean, and you're not the only ones facing this issue i assume is it plastics and packaging or is there another input cost that's been going higher than most and how does the viewer understand some of this relative margin strength we're seeing in the earnings reports this quarter when we know that commodities are getting more expensive? >> part of it is the actual cost of the commodities part of it is the transportation, getting containers and shipping routes so that we can get our products to market around the world and i think it was the snapback in the global economy that happened so quickly as people had planned at other levels and now we're seeing an acceleration of demand and certainly lots of new innovative product that we want to get to markets around the world. we've always built in, driven very efficient business model. we've continued to focus on

that the teams have done an incredible job on our cash and cash balances, cash management we generated operating cash flow well above a year ago at nearly $380 million and we have 1.4 billion on our balance sheet after paying down $300 million of debt that was due in may as we continue to deleverage and get back to 2.5 times debt to end ebita. strong margins was we have strong franchise brands and our wizard of the coasts ip. great stories and great execution. >> finally, i hope you'll entertain one question about return to the office there's a story on the tape this morning that jpmorgan is going to start rotating staff back to the office on a rotating basis beginning in july. can you talk about what the calendar looks look at hasbro

in. >> i'm in the office today we did our call from the office today. we expect to continue to progress toward reopening probably after labor day it will accelerate and we're working on a hybrid model where we'll have people in the office at times and then still out of the office and allow people to be safe and to ensure that they can do their best work. >> a lot of cross currents and dynamics that you're dealing with from commodities to production to office works, but we love the intelligence appreciate it as always. >> thank you >> up next, shares of delivery giant ups surging higher this morning. up almost 11%. we'll tell you why >> shares of 3 m on the move as well after reporting results those are down almost 3% the ceo joins us exclusively later this hour. we will be right back. see yourself. welcome back to the mirror. and know you're not

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this morning including ge, roper technologies, 3 m. also shares of rtx moving higher after the sales forecast up. holding study with commercial aero space expected to recover this year. raytheon stock up. it's up 2% in today's trading. so far the biggest standout in the industrial sector today ups. the delivery giant posting 14% volume growth plus margin expansion across all of its segments powered in part by small and medium-sized businesses. despite the blowout numbers, foregoing future guidance amid what it called continued economic uncertainty it did say it expects to spend $4 billion this year on cap ex the stock is up 11.5% right now. we'll be right back. ayitusst wh

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welcome back here is your cnbc covid update at this hour some crematoriums are working day and night to handle the india covid deaths it's above 300,000 with almost 3,000 deaths reported a day. there's growing evidence that thousands of cases and hundreds of deaths are going unrecorded aide is beginning to arrive. this shipment from the united kingdom includes around 100 ventilators and oxygen concentrators. the indian government says the international cooperation at work but it's clear far more will be needed to make a dent in the crisis and president biden scheduled to

speak later today on the current state of the fight against the pandemic here in the u.s and we're also expecting new cdc guidance on wearing a mask outdoors carl, i don't know, maybe we'll be allowed to go outside without a mask soon. that would be nice we'll see. >> that would be nice. >> yes >> we're waiting for that. thank you. our new cnbc fed survey suggests this year could be a good year for stocks maybe not for bonds. we'll walk through the details good morning, carl yeah, the cnbc fed survey showing many don't agree with fed policy, but they think the fed is going to be on hold for the rest of this year. and the stock is riding that policy higher, bonds riding it lower. forecasts for the end of 2021, you can see how much it's changed since december with all the fiscal policy, the fed on hold europe, i don't know what do you want to call that, 500 points there from what the december forecast was for the year end 2021 a lot of it is baked in.

a little bit better for 2022 you can see 600 more points to the outlook for 2022 where the s&p would top 4500 by year-end 2022. ten-year yield, that's going to be heading up toward 2 % by the end of this year again, much more tightening or much higher yields baked in than baked in in december call it 2.4 or 2.45% by the end of 2022 for the ten-year that's the estimate from the survey 34 respondents barry knapp, director of research, says we're at the early stages of a reflation regime favorable for kwoik investors but not bond inv investors. here's the outlook for the monetary policy that underpins the market forecasts the first rate hike not until december of 2022 three months later, the tapering begins in january. it should be announced a few months before that that's one month later than the prior survey

65 % say a we don't need qe for the economy or market functioning. the feds fund rate hits a half a point in december of 2022. the outlook includes an economy where growth marches higher. tun employment rate is higher. below 5% this year there's worries about stock valuations 70 % of our respondents believe stock prices, stocks are pricey. that is specifically not justified by expectations for either earnings or growth. how do you put that together three ways to resolve that conflict earnings and growth could increase even further. beyond the lofty levels to justify the valuations valuations can fall, or the em balance can remain with high stock prices underpinned by a fed. back to you guys >> thank you, steve. steve liesman. ge shares down a little more than 3% as you see right there almost 4 seema got off a call with larry culp and has highlights for us

>> we started with a supply chain on pricing pressures larry culp says he's seeing it from electronics, resin, steel and metal prices he says we'll look to offset pressures with price and surcharges where we can. ge identifiuation, he cited the uneven economic recovery having a knock on effect. european departures he says today down 75% from precovid levels he mentioned india in the midst of a humanitarian crisis where ge has 25,000 employees. second largest global footprint next to the u.s. he can't point to any material financial impact watching the market closely. he reiterated ge e continues to look at strategic options. he says it's tough in the past for people to look at it as a forced to stress seller. book of business was not understood he says we're improving management we've enhanced disclosures and

we're deleveraging ge as a whole. i asked about his pay package. i think it was around $73 million last year. i asked him to address that. culp said the board is really better positioned to speak to my arrangements we'll clearly continue to listen to shareholders. we'll have the dialogue. next tuesday is when the ge annual meeting kicks off >> there may be people there to raise objections to that as well on the positive side, where do you look renewables, the comeback in wind >> yes exactly. renewables some comments he made to me about how we need to manage that business better. renewable and renewable and clean energy, given washington d.c. and biden administration prioritizing that part of the energy story this is a clear opportunity for ge to capitalize on that q 1 renewable margins were negative but up 300 basis

points reexpects renewable margins in 2022 to turn positive. we'll see if we can get there. >> to dig into the commercial aviation piece, that's certainly really in focus from an investor standpoint when it comes to the economic rebound, recovery, reopening scenario we're seeing whether it is with ge today. raytheon, boeing, when it reports tomorrow jet blue, i could go down the list did he give any sort of -- i guess more color or more detail in terms of what that lack looks like from a ge standpoint? >> he said it really comes back to this being a very uneven economic recovery. and that aviation will be an important factor going forward in the second half and they're waiting for aviation to snap back it's a hard business to provide a clear outlook for investors, to investors, because you have this mixed global economic picture. we're expectening this big rebound in travel this summer in parts of the world at the same time, as he pointed out to me, european departures

down 75% from precovid levels. >> all right thank you for bringing us the headlines. ge shares under pressure this morning. after the break, do not miss an exclusive with another industrial ceo, 3m's mike roman. we'll be right back. stay with us

see yourself. welcome back to the mirror. and know you're not alone. because this is not just a mirror. it's an unstoppable community. come on, jesse! one more! it's every workout. come on, you two! let's go! for everyone. so join in now. and see your best self. in the mirror.

why too much optimism may be the biggest wild card at the fed meeting. more "squawk on the street" ahead. did you know that petco,

is now a health and wellness company? i adore their groomers and their vets our physical, social, and mental health cared for in one place. ♪ petco. the health and wellness company. shiny coat, clear eyes, good energy. we handsome boys need high quality dog food to live to be old, distinguished boys. petco. the health and wellness company. shares of 3m down this morning. reporting a beat in earnings and revenue versus was anticipated the pandemic drove demand for safety products. it left the full year guidance unchanged. joining us is the ceo mike roman. good to have you back. love to start off sort of broadly speaking with kind of what becomes the inflation

picture. on the call, you discuss what i guess you said was an increased head wind from raw materialsan logistics costs for the full year and your cfo went onto talk about the possibility of raising prices in part to meet that. can you give us a little more information? >> yeah. david, good morning and thank you for having me on again we had a lot of discussion on earnings calls this morning about how we're seeing the year play out one of the topics is inflation we came out as you said, a beat in q-1 strong, broad-based growth strong start to the year encouraging growth opportunities that we took advantage of in the end markets. that said, a lot of uncertainty as we look at the year much of that due to covid and how our end-markets, how will they recover as we go through the year what will be the dynamics we see? also related to covid is some of the snapback in demand having an impact on supply chains. and that's coming through.

we see that in inflation we've talked over the last month or so about the increased inflation we're seeing broad-based logistics costs, raw materials. we're seeing that impact our business and impact our view of going forward. and it's something that we did talk about price actions we expect to be able to manage inflation with price and our actions on the supply chain. improvements itself. that's something we manage as we go through the year, getting ahead of that in q- 2. we talked about a head wind in q-2. that was part of the picture and discussion and part of the way we're look agent the rest of the year >> yeah. it may come at you a bit faster than you anticipated i'm talking about inflation as a result of logistics problems out there in general and raw materials. you have to raise prices over time do margins get pinched or do you manage it so margins are where you'd like them to be by the end of the year?

>> we maintained our guidance for the year that includes our eps outlook. we think we can manage it as we go through the year. it will be reacting quickly to the changes in the market. sometimes it takes some time to get the prices into the market and execute that that is what we talked about with the head winds for q-2. the total year we expect to be able to manage and can continue to deliver on the guidance that we laid out at the start of the year >> on that guidance, i mean, you continue to say that you foresee the improvement will remain fluid and uneven through 2021 given the ongoing impact of the pandemic it feels as though we're getting to a new place in the u.s. do you not agree, mike, is it not enough for you to have a firmer from a grasp in terms of your guidance at this point, and if not, why not? >> yeah, i think we -- we brought back guidance at the beginning of the year. as you recall throughout 2020, we had suspended our guidance. we were giving monthly sales reports and helping people see how we were progressing through the year we brought that guidance back at

the beginning of the year because we started to see some stability and end markets around the world. and in particular, in the u.s. and we saw some strength in end markets as we came through first quarter. something that was very positive personal safety as you mentioned, continues to deliver strongly our home improvement business was strong we saw improvements in industrial more broadly. some pickup across the industrial markets our consumer business continues to see strengths that said, a number of our important end markets are still below prepandemic 4levels our growth as we look at the whole year will focus on continuing strength in the end markets but also what happens to other markets like health care, elective procedures. when and how will they come back we talked a bit about we saw some improvements in our stationary office business return to work, return to school how is that going to play out as we go through the year it's the uncertainty around

covid and globally, how does that dynamic impact the end markets? we see the view forward as they should strengthen. the uncertainty makes it prudent for us to stay to focus the and maintain the guidance we came into the year. we'll update through q 2 -2 and get a better view. >> everything you're saying reminds me of what we're seeing in india which appears to be the epicenter of where covid is truly a more systemic problem than we hoped. i wonder how you think about it specifically affecting your broad guidance whether it's india or other areas in europe or latin america, and i wonder to what degree la l that bedevil the domestic recovery in the states >> well, we look at every region of the world through the lens of our businesses through our industrial and safety business, through our transportation and electronics, our health care business and consumer business and how do

those markets play out you've seen as we went through 2020, different markets being impacted at different times depending on how the pandemic was playing out. with what's going on in india, even as economies recover and the vaccines encouraged by the rollout of the vaccines as they start to impact the economies and the reopening of economies, we'll see the markets, the market dynamics play out across the world. maybe in little different stages and that's what we're watching closely through the businesses we really use that roleup of the businesses to give us kind of a view of the scenarios we're facing that's -- that uncertainty around covid is playing out in different stages and different geographies. the other regions of the world as well. >> i realize there's a lot of uncertainty and we're talking about this economic recovery, reopening process that's very choppy depending on sort of which point you touch on a globe right now that being said, the strength

you have seen in the ppe-related business, how resilient can that continue to be as we see reopening efforts continue and how much of that in general do you expect to sort of stay in a post pandemic world? >> well, thanks, morgan. it's an important question for us we are focussed on continuing to fight the pandemic from every angle, and our ppe, our respirator supply is important we continue through first quarter, you saw strong delivery 630 respirators globally that will continue that demand is primarily focussed on health care as we went through q-1 how that continues will depend again on the pandemic. how it plays out we're also supplying respirators into government stockpile strategies we continue to serve the industrial markets and see strong demand from consumer. we haven't been able to allocate

product to the consumer channels because of our focus on health care that's something we'll manage through the year we do at this point see strong demand continuing as we move forward out of q-1 i would remind everyone we saw a big pickup in demand and supply starting in q-2. actually, at the end of q-2 1. we start to lap some of the growth that we saw from pandemic demand in respirators, even in q-1. the growth won't be as big a contribution to the company and we'll start to lap the stronger growth into the second half of the year we'll update on how we see that playing out as we get further along. >> just to shift gears a little bit. the proposed change to the u.s. tax code 3m is a u.s. company you have a localized manufacturing process around the world. how would that affect you? >> well, it's still premature to comment on the potential tax changes. i would say we do support a tax

regime where it's driving increase to economic growth, employment, and really helping u.s. business compete. we will continue to monitor it, and come back with a better view of it as we get more -- as we learn more >> another issue as well is just overall return to work i mean, you mentioned it in terms of your own business but how are you managing the return to work not for obviously your employees who have been on the manufacturing lines already, but in the office? how at this point has your thinking evolved in terms of what your expectations are you're going to force people to come back? give us some thoughts here, please >> yeah. david, it's something all companies are talking about and thinking about how do we return to work when do we return to work? the phases we have a planful approach we have phases and we're managing it in -- around the world. and sometimes in different steps, china is a little further along than other parts of our business, and the u.s. we are in

the early phases of a return to work as you mentioned in your question, we've had our factories operating all the way through the pandemic we've implemented protocols in safety procedures to be able to continue to operate our factories really around the world. we've had a majority of our office workers working from home throughout the pandemic. we've had some return to work. our r&d people need to use the facilities we've managed safe protocols to bring them back to work. we're excited to bring people back at the same time, we're looking to learn from what we gained during the pandemic. we found new ways to connect with each other in the company, with partners outside, with our customers. we really -- one of the great things that -- strengths we came out of the pandemic with is the way we've innovated with our customers in a remote world. we want to bring it with us as we go back to connecting with them in person our ability to help them in a

consumer experience, engaging them in the remote world has been a big gain. it's really helped them trust that we can deliver for them in the middle of a pandemic, and coming out those are things we expect to bring with us into the return to work >> all right i'm curious. we have an ongoing discussion here about will business travel ever return to the levels it saw in 2019. will offices ever be back to the occupancy they had in listening to you, it sounds like no. are employees going to be traveling less and are you going to get back to full occupancy of the building, for example, that you once housed all your employees in >> david, we are going to come back together in person for what we do. it's important that we have that it's such an important part of our culture. it's how we engage with customers and engage with each other. traveling around the world, i expect to be back traveling around the world to be in person with our teams, with our customers, with our partners those are all important.

now, at the same time, we built capabilities that virtual world that we can carry forward. i can reach many 3mers in a virtual well connected, one to one, one to a few around the world. some of what we've done we will use the virtual world but we are definitely going to have a big part of the in the workplace and from home working together part of our culture and will be going forward. >> we'll follow this evolution as well closely as we appear to be getting closer to the other side, so-called, of the pandemic mike, always appreciate it thank you. >> thank you, david. thank you. still to come this morning on "techcheck. an exclusive on the company's any partnership with fedex begins at :0110 a.m. in about

ten minutes. we'll be right back. usaa. what you're made of, we're made for. usaa

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watchathon week is your chance to finally watch shows you missed for free. now you get to talk about them with your friends, no matter what time it is. say "watchathon" into your voice remote and watch for free welcome back to "squawk on the street." i'm dominic chu. stocks slightly lower this hour notable weakness in materials and health care sector you see here

health care worst performing so far today. within that health care trade specifically keeping a close eye on the worst performing stock in the group today. despite expecting quarterly results and boosting full year gui guidance drugmaker eli lilly falling lower. driving a lot of the health care trade. back to you folks at "squawk on the street." >> okay. tomorrow morning got a lot of big interviews on "squawk on the street" and earnings sti to ll follow here as well. stay with us. you need a financial plan that can help grow and protect your money.

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welcome back to this show, but, man, talk about a big show form on "squawk on the street" starting at 9:00 eastern, if you den know that. ceos of boeing, amd, starbucks and spotify, and then on top of that, at 10:00, sant fi and oshkosh. stay tuned for them. a big show looking forward to all of those it guests, morgan, tomorrow. movers to get to, as well,

this morning, we've covered given the onslaught of earnings. u.p.s. benefitting a great deal in the market as a result of the positive reaction to those numbers. tesla not so much. talked a lot about it this morning. continued to be down around 4%. >> yeah. u.p.s. in particular, though boy, really delivering today pun intended u.s. domestic volumes up almost 13%. international volume growth up again. strong again up 23% as well i think speaks to what we're seeing in terms of the economy coming back to life, and i realize multiple conversations with ceos today about the choppiness of that again, speaking to this broader theme we're saying plea out in the market meantime, keeping an eye on, what else? >> space. >> yes high-stakes space spat jeff bezos filing a protest after nasa landed hls to only one contractor

elon musk spacex happened earlier in the month covered it on the show others left out calling it a flawed acquisition adding in a statement that nasa's "decision eliminates opportunities for competition seg consent lay narrows supply base and not only delays also endangers america's return to the moon." closely watched competition is for a lunar lander to carry astronauts to and from the moon. return soon as 2024. the agency widely expected to choose two contractors to build spacecraft instead, in the budget constraints, awarded a sole contract worth $2.9 billion to spacex for its starship system under development. the blue origin team's bid came in at $6 billion more than twice spacex's and another protest, musk

weighing in on twitter with a crude comment. i don't mean crude as in human space flight about bezos company playing awe the fact they haven't achieved orbit with any of their rockets meantime another big hour ahead. does it for "squawk on the street" add "techcheck" starts right now. ♪ good tuesday morning welcome to "techcheck. i'm deirdre bosa with jon fortt and carl quintanilla today lyft sells off its self-driving unit to toyota. we dig into why with the co-founder plus adopi partners with fedex for free