of the indexes so keep an eye on those apple share, joe, andrew, back to you. >> thank you, dom, very much guys, what a journey i laughed. i cried. four stars two thumbs up. what else can we say that sums it up, doesn't it? tomorrow, even more. lee cooperman, right >> we'll get his response. >> elizabeth warren. >> and exxonmobil. >> yes >> okay. >> chevron >> there's a good reason to be here make sure you join us tomorrow "squawk on the street" is coming up right now good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber is on assignment record highs at the open are in sight for the s&p and the nasdaq it's all about am, facebook, caterpillar and more, nyc announces a full reopening our road map begins with the busiest day for earnings

amazon and twitter are on tap tonight. the president's message for the wealthy and corporate america, pay your fair share. and the cdc commits to restarting cruises by mid july jim? it's hard to know exactly where to start but you got to imagine, it lies somewhere within big tech. >> yes, i mean i think that we had some extraordinary numbers last night facebook cannot, it's almost inexplicable how much money is going toward them in advertising, i don't want to call it a blowout, it minimizes exactly what the term blowout means, it was a shock, it was a shock because it was substantially better to have, to have a revenue gain the way it's having, as a big cap stock is incredible apple, i think people are misjudging entirely. i think apple was an extraordinary share take i think apple was an amazing move in services the other, other than wearables, i think that, you know, you have

to wonder whether the mac is going to become the standard at the office, in the enterprise. so it's up $3. i mean come on goldman, the bear had, to throw in the towel own this one don't trade it those two were just incredible and this is a faang revenge clearly, carl. people have written this group off because they hadn't moved. when they got the quarters, they were best in show. i think the numbers for apple and facebook were extraordinary. >> just a reminder to our viewers jim, the revenue increases that we're talking about with those two names, 48 at facebook and 54 at apple, it's the best revenue growth at apple in almost a decade you got to go back to 2012, for facebook, you got to go back to 2018, they're monster quarters, from companies for whom monster quarters have become expected and it kind of raises the question at jp morguen this morning, they're asking whether or not the negative correlation between the ndx and five-year real yield fwrks that negative correlation can be broken, then

they argue you could be talking about a big leg higher for the s&p, because of the big tech tail wind. >> i think that's right. i think that what's happened is, is during the pandemic, we had a wholesale shift. we had companies like, yesterday, like yum, coming on and saying you know what, we are really making a lot more money, if we put our money right to the internet, that it's just targeted and better, and we're going to shift now when you have a company like pizza hut, kentucky fried chicken, these are staples for our advertising that you look at, and they're saying you know what, we have even hired a company and the company is saying put the money on the web. remember, google was the other one that was a standout. these companies are remarkable, and the amount of money that they're buying back, i'm listening to, i'm listening to president biden last night and i'm thinking he doesn't have the fire power that an apple, a google, and a facebook have. i mean these are remarkable creatures so to speak. so i agree with that thesis. i would also add, carl, i mean

have we ever heard that apple was crushing it in china, three or five years ago, we would say come on. and aren't we in some sort of existential crisis with china? well if you look at apple's numbers, the answer is no and we're back in competitiv mode which is what biden thinking i can't stress enough that we have had so many good quarters and there are pantheon quarters, and i know apple, google, which i know, we got to call it alphabet, and then facebook, are extraordinary. facebook by the way, the stock started going up, the moment we saw the numbers, because i mean this is a company that the average revenue, look at this, the revenue, went from 48%, i mean the amount of money they're making, the monthly average users, 2.85 billion, i mean what happened what happened? they had enough room, enough runway to talk about ar and vr

and monetizing those, too. i'm out of super la tives. but again, not a single victory lap taken. we talked a bit about this, if you're this big and growing at this rate, of course you're going to, as i said yesterday, having an aw shucks attitude because the moment that hubris does creep in, you're inviting more scrutiny than they're already getting. >> you're absolutely right here i am trying to get apple pumped up. i remember when i went to coach peterson, the eagles about playing the 49ers, a rainy day and i had to grap him and lift him and say can you please get fired up, he was the open of the eagles then. i feel the same way, tim, come on, don't you know how great these numbers are? i mean i find that the numbers are so fabulous, and tim's like, yeah, yeah i know they're unbelievable no, no, these are like you won a

super bowl you know, it was a good practice, scout team game. i cannot believe that you could have mac and ipad do incredibly well, that you could do amazing in europe, and i thought europe is closed, but of course, what we found is that they sell so much direct to consumer, and that's another great story there are so many great stories, so many superlatives, i don't think people realize, like i wasn't happy with wearables, i had to find something negative to say, and i thought wearables would be blowout and i'm not happy with the watch and not everybody in the world bought the watch this quarter and i tried to charge my watch last night and there's another watch there and it's my wife and i said i never thought you with wear a watch and it's not a watch. what is it it's a way to talk to you while at a board meeting no one knows this is just incredible. the world has changed. >> if the wife and you are

fighting over watch charger, then you and i live in the same house, because that's happening in scale the favorite stat of the morning is a hat to bespoke, the $12 billion revenue beat, not revenue, revenue beat, is higher than the trailing s&p 500, and here's what tim cook said about overall demand. >> the demand feels very strong right now. both on the mac side, you have the combination of m-1, and work from home and remote learning and an ipad, you've got remote learning and work from home as well so there's a lot of great things, the strength of the product cycle, in addition to the trends that we're seeing in the marketplace. >> so jim, i know you were talking with andrew about goldman, rod hall has had a

famous sell on the name, for a long time. comes clean today, and upgrades, says we were clearly wrong, that their view that the iphone cycle would disappoint in covid is clearly wrong. >> yeah. >> market change in sent million overall? >> do you remember that scene in the birds, the great hitchcock movie where suzanne ple shet is killed by the crows at the jungle gym, and he may have eaten every crow in that picture, and in that movie, and he didn't just throe in the towel, he threw in the restoration hardware five rose this is one of those where i think that you realize that he couldn't completely come around, but the price he was looking for, carl, i mean, you know, these are people who think the stock is going to go back to the 80s, i mean hello? i mean but you know look, i am going to say, i am going to say, he is probably a nice person

>> i think there's been a lot of schadenfreude this morning about his upgrade. on the other hand, jim, i guess, you know, he could have buried this in a 100-page industry overview, and he close not to do that. >> that's true >> it's goldman's job to give their clients an array of ideas and some will get accepted and some will get rejected. >> he could have done "war and peace" instead of the gettys burg address four score and seven years ago, i was completely wrong with apple. and one of the things about apple, they had to admit the supply chain problem, with the semiconductors and all of the companies other than qualcomm that you had to worry about semis, this is the one i worry the least about, because they do multiple source like qualcomm and i know they had to call it out just because everybody is calling it out but i think they'll be fine. i don't think it's by rote but i will say that i'm less worried about apple than say ford where i had last night and ford is

just decimated by this i don't want to switch gears out of tech. >> ford is a tough one, jim. the quarter itself is a handy beat the loss of planned production, 17% and it sounds like farley told you, it is going to be more like 50 this quarter >> yeah, this was, i'm going to put this under the bad column. and i happen to like farley very much, but i think the company could earn maybe a buck a share and they could be back to the table, five bucks, ten years ago, that got the stock to 18, now i don't know if they can do that, and they need the, it turns out the japanese chip fire was far worse. now, one of the things that is happening we have these disasters, carl, and you think they can flip a switch and go back online. if you read, my old friend tj rogers this morning, in the op-ed piece in the "the wall street journal," you can see that this is just pure trouble we just don't have the horses to make this, to have anything change certainly not the government so i mean i want to talk about the ford call, and farley was saying, i was doing a lightning

rod, broncos sold out 150, everything is sold out, the mac-5 e is sold out and the narrative would have been if it within for the chip fire, look out, look out elon musk, i've got the e.v., but instead, it was well, i don't know, i thought geez, not go be to be able to make as many cars and truck, and i think it's a shame, but if they do, if it is a bottom quarter, carl, if farley is right, then this company has to be bought right here, right now. because you're not going to be able to get it, if they do indeed get the chips they need i just don't know that they're going to get the chips i don't know they're going to get them. >> do you think in six or eight months we'll be talking about the automakers the way we'll be talking about cat today where the dealers are trying to fill the lots that are relatively, historically empty for several quarters >> yes when you're talking about four and five-day supply. as soon as they go to the

dealer, they are sold. that's the shame about the chips. because he does have the right lineup and the f-50, the electric f-50, the electric f-150, this is something that i think will astonish people, i think people very much want something like that, the small and medium sized businesses so i'm very bullish on ford and i see the stock coming down and i understand that but if you didn't like farley last night, then you didn't understand. this is a person who is earnest. we are overlooking there used to be losses all over the world and geez if it weren't for latin america, if it weren't for europe, no, farley, underneath this chip shortage, farley has cured the major problem of ford, which is they decided to no longer lose money in areas, because they feel like they have to be everywhere that's not farley's style. i like the quarter ex the asterisk but then you can say i like the play ex the assassination, police -- mrs. lincoln. >> american cousin, how it was

>> it's worth a listen, what farley was talking about, the production cut, the shortage and the ongoing challenge of ev. >> we think this quarter is the most difficult we think the chip shortage will extend into the second half. we may lose about the same as what we did in the first quarter. but then as we come into the last part of the year, you know, we're really moving. >> jim, he talked about offsetting those production cuts with pricing and price control >> look, i think he's going to be able to do it in the second half i think by the way, i think he's gunning for elon musk. not like the regulators who obviously had a fantastic article in the "journal," he is coming for musk for both barrels and he thinks he has the lineup and mustang, you don't need advertising for the mustang, exactly like the tesla, maybe better, carl, this is the rivalry that you have been looking for, and farley is every bit as funny as the other farley

>> i was going to say, jim, what's more effective, having a big ad campaign, or word of mouth or hosting "snl" right. >> that's what you want in the car business. >> i think jim farley could host "snl," and remember, you can't do song and dance if you didn't blow out the quarter if it weren't for ship shortage, then we would have another farley on "snl". >> jim, we got so much more to get to this morning. we will get to our parent comcast. delve into caterpillar, and mcdonald's ceo will join us later on today and we will talk about what the president said last night in front of congress and what that means for taxes and policy in this country futures are higher back in a moment ♪ ♪

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joint session of congress last night, making the case for tax hikes on the wealthy to pay for his economic agenda. jim, you know, we've long said president does not make a stock market, but by the number, and with a lot of help from other sources, biden's first 100 days had delivered the strongest post-election equity market in at least 75 years. the question is whether that lasts with some of these new proposals. >> it's completely counter intuitive. you would think that these proposals are the kind of things that truly dampen the stock market but i think that the stock market in the end is much more involved with the other branch of the government, the federal reserve, and you still get a better return, and a terrific article today about california and how they will have a budget surplus because it matters so much, the stock market matters so much, and i agree with the president, in the sense that wow, the people who are wealthy have to pay their fair share because they're wealthier than ever, because of the stock market so i think that you may think that these have to send the stock market down, but then you

think about an apple or facebook, and you say, well, you know, go ahead, make my day. i don't know how you take those down i do think that we also are dealing with carl, a little perspective, it's not the absolute worst, it's pretty bad for rich people but not the absolute worst, correct? there have been worst times. >> yes, i think you could say that a lot of the coverage this morning, jim, sort of has a big government, big tax, big spending overtone, a lot of comments from the romney's and the manchins and the thunes, i think the quote out of "politico" this morning is that the president is trying to force a rhinoceros through a garden hose given the political limitations in congress right now. >> i think it is a very good speech, i don't want to say sock the rich, that's not right but if you want to make it so the middle class are not taxed but this one i don't think you can get through the senate and it is pretty radical to spend 6 trillion, and not get anywhere

near that package. the richest aren't that rich there's just not that many of them but at the same time, i recognize that when you start with an opening offer like this, you're going to end up with something that is very different from what we currently have. look, i think that people who make over a million, if they voted for him, i guess that's what they, i don't know if they expected it. >> they better be ready. >> they better be ready. if you make more than a million, you're not going to keep, you'll keep 40% of it if you're in the wrong state >> it looks about that way >> jim, i want to get you quickly on vaccine, covid, new york city, today, announcing they are going to fully reopen by july, 100% at museums and restaurants and stadiums, it's a much different picture around the world. india of course is a huge focus, as mark benioff told you on "mad money" last night. listen to this. >> even today, we are just getting ready to fill a plane in

china and send it to new delhi with pulse oximeters and more in india. this is not over >> jim, some of the reporting from there, i mean there are cities of 17 million people where you can count the number of icu beds on two hands >> yes, it's benioff sending a 787 packed as he did to new york when the pandemic was raging here there is a professor i follow, instrumental in trying to get our president, our country and the cdc, to recognize thatle rec receipt, is that the real issue is not surface, the real issue is aerosol and when you're in a closed space, it is possible, and like an acquirer in the, a choir in the state of washington, a tremendous people get it and they're spending a huge amount of time spending surfaces in india and not looking at a core issue the

aerosol buildup and until they do, these numbers are not going to come down. >> i think the atlantic calls it hygiene theater. that's basically what it is at this point, jim. trying, to it's cosmetics, it's not where the data is telling us to go. >> no, it's not and very interesting, because i asked mary benioff, and the first pandemic, and the second pandemic, go what singapore did, is inning pour had a corden around the country, and everybody had to wear a march and strict rules and they beat it they beat it and there's real business being done without masks and you go to restaurants and they are where we are but they never went through what we did and i think we have a model for what happens next time i know marc feels there is going to be a next time and he feels right now that we're a little better than we've been but not total and i know that when he does these things, and work.com, salesforce, able to reopen, these are out of his pocket, i mean, this is a 787, and i need ppe and i need it sent to india,

i need it sent now and what can i say, is that not business that is the greatest force for social change? i don't know what else it could be >> the world is counting on philanthropyand charity like that jim, it's incredible we'll take a break here. we have a big morning setting up obviously, record highs are in focus, as futures are green. do not go anywhere esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential.

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highest price appreciation between today and the friday before the super bowl. tune in for a special edition of "power lunch" this afternoon, and that is a very cool concept. 2:00 eastern time. >> i'll tell you, one of the things, we have some etfs in here today, we are obviously, we have some crypto, but i have to like, the people themselves are actually very competitive, carl, and they know something. the man i would single out is the o's, reading my mind about this stock, disney and he was remarkable. he's nothing but entertainment but he knows he knows he knows o's knows. >> i love it i can't wait to hear more on wer again, 2:00 this afternoon. opening bell in a few minutes.

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let's get to "mad dash" with jim. >> one stock that people just love and when it disappointed last time, they freaked out and now it actually made back what

they freaked out about it's qualcomm. orders are back. chip shortage, they can multi-source fantastic numbers from china this one is the one that will be up the most after facebook. >> yeah, after a a series of downgrades in the past couple of weeks. >> yes. >> it will be interesting to watch. glad we got that in there. the opening bell at the big board. sports and entertainment company endeavor, veicelebrating the ip. and at the nasdaq, a company focused on treating addiction and mental illness. jim, what kind of action do you want to see today? especially given some of the poor performance in bonds this morning? >> i just want for once want the end of the day be better than the beginning of the day i look at these markets and they open up, carl and then people spend the rest of the day trying to get out of the stocks instead of getting into the stocks and it ends up, what we have is a situation where other than the

oils, which continue to act great, you find that you pay right here, you end up buying at a bad price. so i would like to see that the reverse, you know, when you open facebook up, say 25, or apple up $2.30. it is more likely to go to 20 than $2.30 i'm talking about amd yesterday, came in hot, lisa su acquitted herself fantastically and the stock ended up down so everybody who bought the opening, just got just snookered so i want things to cool off a little bit, carl i don't want to see qualcomm up 8 for heaven's sake. how about 5 and going to 8 instead of up 8 going to 5 and that's what i keep being concerned about. i just don't see a sustainable market when we open at highs it doesn't work. >> facebook's going to lead us this morning, jim. on the s&p up 7-plus. qualcomm's not far behind.

the cruise lines, jim, all three of them are right behind, as i guess are we seeing some detante between the industry and the regulators >> going back and forth with fdr, frank del rio, the excellent, some say people overpaid, i say ridiculous, he saved the norwegian cruise line, ceo, and talking about august, and talking about august, and yes there's a detante, the cdc finally said, if these guys are willing to do anything, they're willing to vaccinate everybody, whatever you wanted, and there had been a feeling that the cdc just wanted to put them out of business well, that's done. you have three, you got great executives in this business including richard fain who we have on and i am thrilled that this is happening, i'm pro-cruise guy and felt like they did everything to make it that they did not have what occurred a year ago and being penalized so i say cruise on, august and september you better book now. prices are going to go up. >> jim, every time i think about

industry, sort of grappling, coming out of covid, i think of your restaurant and how the challenge before was dealing with the city, dealing with restrictions, and now that that's sort of being lifted, the issue is inflation and i know you said a couple of days ago that inflation at the small business level, i think you said it was insane was the word you used. >> we have 18 employees. we have, to i'm looking for a bartender, i'm going to get in trouble with my wife on that, and we need a bartender and two servers and i don't know what you have to pay to get these people in, there are no servers, carl, when i was growing up, i fought to be a server among 40 other people at the clock in beaver which was just an okay place mr. fox treated me horribly. but i know this is the most competitive market for labor i've seen. avocados, forget it, avocados, like it's like buying a wine, every single wine, and the worst one, insurance, carl, they have taken up insurance like you wouldn't believe we will open, our menus are

good, but i'm charging $2 more for beer than i had to before, because it is that expensive guacamole, holy cow. it's like gold it's like dogecoin more real than doij coin it's a nonfungible token i don't know >> if aftevocados surpass doge i quarter that will be a story and it looks at the mcdonald's comps and the quarters face this quarter. the charts, up 13, mcdonald's up 13.4 at domino's they're passing it along >> it was a survival business. and 150,000 restaurants that didn't get to the promised land, mostly by the way a lot of them didn't have any technology at all. these places are all fired up by technology when you look at yum last night, david gibbs, they have spent a fortune on technology and

therefore they're able to beat anybody. pizza hut, i've got domino's tonight but pizza hut is coming on strong and they were an also-ran, they know how to spend the money, they were cited in the google car as someone who knows how to spend the money correctly. so carl, we can't spend the money. i'm privileged, i know, and walking, did well in life but the average restaurant cannot compete on technology and the point of sale costs a lot of money now and door dash will get its cut because they made it because it is doordash versus uber you're opening a restaurant now, and you have to temper your, really temper your expectations. we were profitable for a long time i don't know, i don't know, i mean i just don't know how to stay profitable, but if you just do it, hoping that there's enough foot traffic, got to have foot traffic >> right right. and that's the story for mcdonald's we'll talk to the cfo later on this morning. >> oh, really? >> jim, caterpillar is worth at least -- yeah, we got the cfo. i think it is the first tv

interview. and we will talk about cater p pillar revenue up 12. construction up 27 and we know that rolling sales have looked like for the past couple of years and now it's up 13 a nice departure. >> and people bought it up in the pre-market and got all excited about it without listening to what the company had to say i mean it's like buying ford when you see the number, before they just lowered the boom on you. caterpillar, supply issues but look, i think caterpillar, umplby, cat used to lose money, cat was a true cyclical, and now they just make products and they keep making more money i keep looking at oil. i know right now oil is on a trajectory that is dramatically up, chevron and exxon about to report caterpillar is more levered to oil than it is to any other market, including china, and oil spend is going to go up.

the permian spig ott is going to go up. we're going to see the companies in texas start to spend a lot of money because $65 is great for them as long as the saudis just don't just make things awful for them, and saudis so far are not, then it's great for caterpillar and caterpillar has to be bought the sellers now are, thir there's some sort of remorse they're going to have, that i think they're on the wrong side of the trade facebook, someone paid up 28, carl where is that person i mean that person -- what i'm saying, when we start, on a day like today, we see just a level, a great example is service now i mean service now, they had a good quarter, and yet, nobody seems to care. they just say, well, look, that's, i'm downgrading that wurngs i'm moving on the next one. down 33 points that's a great company that should not be down like that and i think i want to buy that one. so there's a lot of them that i think you can actually make a case for that are down

and i think people are foolish, just foolish, they're just foolish when they pay up hey, you know what let's talk to big mcdermott, because bill and i, i've known bill for years, for wherever he's been and bill is a straight shooter, a money maker and frankly upsetting for me to see the stock down 33 points, given what i really think was a dynamite quarter, and a very good outlook that is somehow being misinterpreted by analysts, bill mcdermott, welcome back to the show, the man who runs service now, can you explain to people what greatness is and how people don't understand greatness because that's what you delivered and that's what you predicted. >> absolutely, jim i mean it's pretty amazing we grew 30% year over year, expanded margins 7 points. free cash flow, 7 points and basically gave it 30% guide for the full year. so look, we're a momentum company. we're on a roll. and who knows, maybe people want

more so you know what we're going to do we're going to go out there and give them even more jim. >> there is an analyst meeting where i think you can straighten out the confusion, correct >> absolutely. look, the bottom line is this, we are at the epicenter of digital transformation this is a 7.8 trillion market, in the next three years, and we are absolutely the strategic authority for work flow around the world and when you think of minnesota children's hospital, national cancer center institute, xerox and bmw, and bristol-myers squib and subway, they're all reinventing themselves and building a bridge to the future with servicenow, and we take great good care of our customers and employees and we win, jim, that's what we do >> rarely have i seen anyone penalized for having up 80% year on year growth and you will to

make that 4 x, it seems they didn't believe that foreign exchange is somehow real i want that business in europe, and i don't care about the for ex and you had a breakout and in a zoom culture, how are you able to close deals in europe. >> it is amazing we have built an amazing brand and as you know, in the america, the brand was driving 70% of the company's revenues but now, we're truly a global software company and you see all of the lights turning on across europe i mean for example, we're vaccinating millions of people in germany and scotland and the u.k., on the now platform. we're building amazing bridges to businesses that are going from these on premise installations, to the cloud. we're reinventing business models each and every day, and ceos across europe have now realized that servicenow is the answer to their problems because the bottom line is, these paper-based soul-crushing

processes, are killing companies. and they want to go digital, and they want to go cloud, and we're the best way to get there, because we integrate with all of the old systems they have, so they're not stuck in the past. we build a digital bridge to the future they get a tremendous return on their invested capital and we help them win so europe is on fire apj is on fire and the americas has always been fantastic. so this is a global growth story now. and i'm looking forward to more and more business coming from international markets. >> okay, so bill, we know that you said that the current pipeline is large, you talked about how you could be a beneficiary of a lot of the biden programs, they need to, they certainly need servicenow, but let's give the analysts their due, people say you lowered 2021 sub revenue and you lowered sub billings and what we could argue is if you look at those particular metrics, it wasn't up to a bill mcdermott

quarter. >> yeah, you could say that the capital markets want more. but all that happened was the seasonality in the guide, so the guide is 30% on revenue, okay? the guide in seasonality was in the 20s in the second quarter. which is what we're in now and it progressively gets larger as the year goes on. so if people want more out of the second quarter, we'll get it for them so the point really is, stay focused on the big picture which is 30% for the year. the seasonality in q2, q3, and q4, ascends as the year goes on. and as it relates to the new administration, just like business, government has to reinvent itself, with digital technologies, and we get 10% of our business from federal, state, and local businesses, and we're doing incredibly well in the government in the first quarter and the second quarter, though, you have a change in the administration so more of that business will come in the second half of the

year but our guide is strong. and it's only going to get stronger i've never seen a pipeline like the one we have right now, jim, and if the investors want more, guess what so do i. and after i'm done with this interview, i go to talk to 14,000 of my friends at servicenow, and we're fired up, and ready to go. >> well, jpmorgan, we did talk about how maybe current bookings are not a perfect indicator of what's going on. i like to think that large size deals are. 37 deals closed during the quarter. astronomical size. without visiting people. how do you do million dollar deals without a handshake, bill? >> thisis amazing. and this is why we're so well positioned so we have built such a brand with such referenceable customers and incredible loyalty, that the existing same account revenue growth is unreal so whether you're solving i.t., employee experience, customer

service, or now applications at the edge of the enterprise, where engineers and business people are coming together and saying hey, we have to reinvent new digital applications, and we need to do it fast, so they're doing it on the now platform, because they can build things in days and roll it out so what you're seeing right now is unbelievable opportunity, because ceos and executives realize, we can get on a zoom or a teams call, have a perfectly legitimate conversation with servicenow, they give us a turnkey, ready to go plan, they implement in days, and we're out running in the market. that's what businesses want. can you imagine, jim, as the economy now opens up, and we get to do the handshake, plus all of the new digital maneuvers that have done so well for us over the last year, this is going to be an incredible year for servicenow which i guarantee. >> and an opportunity to buy bill mcdermott,ceo servicenow, it's so good, always, bill, to

have you on the show thank you so much. >> thank you, jim. >> all right, back to you, carl. all right, jim, great stuff. we got record highs on the s&p nasdaq, 10-year, 1.67. let's get to rick santelli hey, rick. >> good morning, carl. yes, pretty good this morning. jobless claims continuing claims, both moving in the right direction. although maybe some of that was revisions of last week and we did see very strong gdp numbers, especially on the consumption side so as you look at an intra-day of 10s, you can clearly see that right around 8:30 eastern, we popped a bit but if you really want to know where the pop counted the most, it was on tuesday. let's look at a three-day chart. on the left-hand side there, you can hardly see, it when we popped above 1.60 intra-day, it has been a key pivotal area, really it changed the dynamics to some extent, and even though intra-day levels, we've seen some buying, especially during press conference, and some of

the logical arguments made by the head of the fomc, well, we saw yield goes down a bit, but in the final analysis, whether it's what's going on with equities or the general notion that the economy is heating up or the tremendous amount of debt may be getting more stingy with capital, we see rates moving higher and if you open the chart up to august, you can see, on august 4th, the low all-time close, 50 basis points, the february meeting of 2021 which changed the dynamic of this meeting, and then we started to drift a bit but now, we've turned higher and that is significant. look at the 24-hour chart of the bund bund yields right now are screaming higher they're at minus 18. think about this they haven't closed in positive territory in almost two years, the first week of may of 2019. the post-covid high yield even though it is a minus 18 as you see on the next chart, we want to continue to monitor all that

is europe. they're starting to spend money. they're starting to get it right. and many investors are going to look to that as a market positive carl and jim, back to you. >> all right, rick, thank you. rick santelli. as we said, regard high s&p. 4212 all sectors green except for health care which is just barely red and the vix back to 17 we're back in a minute

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jim, we haven't gotten to our parent company comcast, and then merck, after lily another disappointment out of big pharma. >> big pharma has been terrible. just terrible. missing numbers big. first quarter they usually make their numbers. five out of five for most of these at the first quarter for the big five, it's very disa disappointing. comcast, broadband was terrific. peacock, carl, the parent company of our network did you see those peacock sign ups, it's pretty amazing.

>> i did 42 million, that's the number. >> and then you open up theme parks. andrew is talking about the great reopening story. i have to believe that, and broadband is terrific. people love broadband is here to stay a lot of people were worried about the european acquisition i don't know i mean, if you -- you can take what i said with a grain of salt, that stock can go higher it's a remarkable quarter. >> 461,000 broad band met ads, street was looking for more like 400,000, and ebita beats by about a billion dollars. >> that's amazing. i mean, you've got a theme park that's just not -- not wcarrying its weight, the will, there's an inexpensive stock. that's what's happening in a lot of our stocks. looked expensive and they turned out to be inexpensive. i like that. >> right, right. that was the earnings catches up to where the market thought they were going to go, which is generally how you like to see

things work out. >> totally dow is up almost 150 and we're dow is up almost 150 and we're at that's decision tech, only from fidelity.

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let's get to jim and stop trading. >> ebay, look at that, there's a

lot of new complication, carl, the posh marks, the real real, stock x, goat, and it looks like everyone is on to their game, and they have not upped their game it's disappointing i think that's one that i would not use the weakness i want to see what the ceo says, but they have the long knives are out. a lot of people have caught on to this. i think he's got to strike back, and so far, it looks like they're prey, not predator >> yeah, i was going to say, we'll talk to him on monday, but are there strategic decisions that could have been made differently in the past that might have made today's picture different? >> well, i just think that this is something with macy's, with jeff gwinett, who's terrific, doing a good job you have to buy these other companies. you have to change your model somehow, or you have to take over and stop those, you know, you kind of use a facebook, instagram method, which is that,

look, someone's out there, and they could be a competitor, so let's go buy them, and you have to do that when there's no antitrust action ebay has to step up, and has to buy some of these competitors, and they won't want to do it they'll tell you the competitor is too expensive when you think about what zuckerberg did, when he paid too much money for instagram did he, no, he stole it. that's for jeff to do. >> it doesn't look that way now. the couple flash heads on caterpillar, one is that raw material costs will be a head wind beginning in q2 but that sales to end users in q2 will be significantly higher than q1, and we'll see what umpleby tells you tonight. >> that's a company that can pass on. you have to figure out who can pass on the raw costs and who can't. the home biuilders look like thy can pass on the costs. the retailers are on fire

because of the jobless number, and they don't need chips to do their job. >> we did our job, at least this hour >> yes yes, we sure did dominos, caterpillar and align braces when i was 12 they don't hold up for 38 years. okay maybe 40 whatever thank you. >> jim, we'll see you at six mad money of course, 6:00 p.m. eastern time rieacewicome back, royal cabbn o th markets at record highs what happens when we welcome change?

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good thursday morning, welcome to another hour of "squawk on the street," i'm carl quintanilla, with morgan brennan, david faber is on assignment record highs for the s&p and nasdaq on the biggest day of the earnings season as we react to the fed, the reopenings, to the president. meantime, we're getting pending home sales out a few moments ago. let's get to diana olick diana. >> carl, pending home sales in march rose 1.9% month to month that's a slight miss the street was looking for 5.. gain year over year is 23% you have to be careful with that number anything compared to a year ago

when the pandemic started and the housing market ground to a halt, it's an anomaly, and we're going to see that for the next two months it is, however, the first mon monthly gain realt realtors say higher costs is what's standing in the way of more sales prices up 12%, year over year, according to kay schiller. realtors saying they're not seeing enough supply on the market potential sellers worried about listing their homes due to health concerns. >> diana olick, thank you. we're 30 minutes into the trading session. here are the three big movers we're watching right now starting with facebook, earnings and revenue beating the street as digital ad spending continues to surge the company warning, though, that ad revenue could take a hit later this year due to apple's new privacy policies we're going to get into apple's results in just a moment as well as you can see there, shares up 6% also want to mention dow

component caterpillar, beating up on the top and bottom lines, spurring global demand with pricing in focus as well shares down about 1 1/2% meantime, though, shares of our parent company comcast, moving higher on earnings beat. results driven in part by strong growth in broadband and wireless customers. those shares up 3% as well >> morgan apple shares are off the initial highs of the morning. still taking you back to the early part of february josh lipton has details on the quarter, and comments from tim cook good morning, josh. >> carl, one long time apple analyst is telling me he hasn't seen a beat like this in ten years with revenue surging in the quarter, 54% to a better than expected 89.6 billion profit 1.40, stronger than estimated. the company increasing dividend by 7%, and boosting share buy back program by another $90 billion. ceo tim cook telling me iphone

grew 66%, driven by strong demand from the iphone 12 family the most popular iphone, but we had extremely strong results in iphone 12 pro, and iphone 12 pro max, the super charging the demand in the u.s. we also talked about china where revenue jumped 87% tim cook saying we are seeing strength across the product line in china iphone did extremely well. mac, ipad, wearables, home accessories did well we had the top two smartphones in china is that demand being pulled forward or is something significantly changed here in how people are thinking about work cook telling me it's hard to say. it appears many businesses are going to be in a hybrid kind of format remote work maintains a high level of importance, post pandemic apple, like so many companies is dealing with this historic chip shortage, seeing supply

constraints that will impact ipad and mac sales the drop in quarterly results will be greater than usual morgan, back to you. >> josh lipton, great reporting as usual certainly interesting when you see qualcomm results as well the fact that the 5g smartphone revolution is upon us. we're shifting gears another big company coming to market, endeavor set to make its debut on the new york stock exchange let's get over to dedeirdre bosa >> good morning to you, what a journey z it has been. you pulled your ipo in 2019. been through a pandemic. the business has transformed since then what do you call endeavor now? what was your pitch to wall street >> well, listen, we listened to wall st wall street. first of all, thank you for having me. we listened to wall street there was confusion around the ufc, we have consolidated all of

ufc insided company, and we're the kind of reopening story like you see now with hbo max comcast you're just talking about, you know, we're the largest company, the only company that represents content in the entertainment space, owns content. owns sport with ufc and many others there's nobody like us in the world, and i think we're the reopening. plus we have all the experiences, largest experience company, so we're a unique company in the marketplace right now, and perfectly primed for where the reopening is going >> and not just a reopening play because your acquisition of the ufc and what you have done there has been successful, even amid the pandemic talk about that business a little bit currently sports property made up about 20% of revenues in 2019 how do you see that shifting or changing over the last year and over the next few years? >> here's what i would say to you, even during the pandemic where we didn't have live

audiences, we didn't have commercial pay per views, we beat our ebita number by 10% now with the reopening you just saw last weekend, we had a live audience for the first time. in houston, we're going to have a live audience. in july, another live audience our director-to-consumer on fight pass is up 40% our commercial numbers and our marketing numbers are up china is going to be bigger than ever actually, because of the fight, even though our chinese champion loss, there was over a billion video views out of china we think that business is going to be as big as the u.s. market. we've just made a new deal so all signs point very higher, and we're coming out in june with our nfks like the nba has done they are coming out. so we're going to be in -- we're in unbelievable shape in that business right now >> we spoke the other day to the ceo of dapper labs who's quite excited about that. any other public company from boeing to tesla to drug makers when there

has been a death or significant injury tied to the product that often affects the stock. now, there's no denying that ufc is violent, and there's always been this question, what if something, you know, god forbid truly horrific happens do you have a plan if that happens, and you're a public company. how are you thinking about it? >> i would say the ufc people don't realize it's been around for 26 years unlike any other sport, we have never had a serious injury sports have serious injuries, whether it be hockey, the nfl, basketball, we take our precautions in that people understand it going in i'm not really concerned about that we do have plans in place, but we are actually, we have a lot of kind of protections inside the arena about tapping out and et cetera, but we're like any other sport, whether it be football, hockey, any of these sports that have to be concerned about that it's been around for 26 years. nothing has happened in that capacity, so i think we're in good shape there >> for you personally, you are

becoming a public company ceo, and america sort of knows your trajectory, your style, how does that change once you're a public company ceo or does it not do you take a page from one of your director's books, elon musk, and sort of do you as you have done? >> well, i'm going to be me. i have grown up over the last 26 years running the company from four people to where we're at right now. i think we're the best position company for the where the world is going in entertainment, whether it be content in all forms, distribution is expanding as comcast just reported last week, hbo and at&t reported, and their subscriptions. i'll be, you know, who i am, but everybody around me is making sure that i'm in line. it's going to be hard for them. >> no cursing on the earnings call, is that correct? >> definitely not going to do it with you in my first interview this will be one of one maybe.

>> good. >> speaking of elon musk, he will be one of 11 directors. you know he is a busy man. he is ceo of two companies, he has active roles at nuralink and the bourn company. what do you want to get out of him? >> he always kind of sets the stage of where the world is going. he understands what it takes to be an entrepreneur and how to gop businesses and grow them, and he gives insight where the world is going so therefore we can adapt our company, and that's really what i want from him. >> has he advised you to hold reserves in bitcoin or any other cryptocurrency >> i haven't talked to him about that he's been launching -- actually, last week he launched endeavor with the astronauts so he's been very busy, but he sent his congratulations yesterday to me, which was -- i appreciated >> okay.

we'll ask you about that one later, then. deals like ufc, and img, they have grown endeavor from talent agency to entertainment and sports provider, but they haven't generated any profit, and as i was reading through the s 1, it says endeavor may continue with strategic acquisitions and is unable to provide assurances that the benefits will be realized in the long-term or at all, so what kind of discipline will you be bringing to future deals >> here's what i would say to you, we have resegmented the business, taken notes from everybody. all of ufc, we have cut significant amount of costs, a large portion of that will be permanent. 50% free cash flow, what we have raised over $3 billion the acquisition is in 30% cash, the rest in stock. we have enough money to take down our debt sub floor, and grow the business. what i would say to you on the net basis which is what you referred to, there's a lot of noncash issues that apply to

that to make that net number we think a better indication is to look at our ebita number, and we are growing at a very nice pace >> okay. key to note as well, though, that public shareholders will hold almost no voting power, so no stay in such strategies at the same time you're, patrick whitesell, and silverlink will control 90% of voting rights after the ipo. how will you be accountable to shareholders >> listen, i think i've been accountable to shareholders over the last 26 years. we have built a lot of value for our employees. a lot of value for the people that invest over the years we're going to continue how we have been doing it in the past i'm very confident that we'll drive value. and i'm invested in the company. i'm not taking any money out of the company, so i've been a guy that has driven a lot of value to this company over 26 years ago. i'm very comfortable with where that's going to go >> well, ari, i look forward to seeing how you guys do as a

public company congrats on this milestone and i'll be on this earning call to see if you can stick to the no person rule. >> there will be none of that language, my mother would be very upset with me. >> i'll hold you to it. >> thank you very much i really appreciate it >> back over to you. >> bye bye >> thank you very much as we go to break, take a look at the road map for the rest of the hour, a closer look at today's massive earnings movers as both the s&p and nasdaq hit some new record highs. plus, the cdc says cruises can set sail as soon as mid july we'll speak with the ceo of caribbean, and pay your fair share, the president's message to corporate america what is fair share, we're going to talk about all of that with a big show still ahead don't go anywhere. i will not impose tax increase on people making less than $400,000. but it's time for corporate america and the wealthiest 1% of

americans to begin to pay their fair share just their fair share. 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. i love two things, eating high quality cat food from petco, and the box it's delivered in. same day.

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wanna help kids get their homework done? well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna learn. over the next 10 years, comcast is committing $1 billion to reach 50 million low-income americans with the tools and resources they need to be ready for anything. i hope you're ready. 'cause we are. take a look at mcdonald's this morning, trading at 233, the world's largest restaurant chain beating on the top and bottom line. growth in the u.s. of nearly 14% for the quarter. outside, a slightly different story as obviously some countries are extending lock downs. joining us in a cnbc exclusive is mcdonald's ceo, kevin ozant,

thank you so much for the time it's great to see you. >> good morning, carl. thanks for having me >> it's just a remarkable period for the whole industry, really, because it's not just about easy 2020 comps you're surpassing levels from 2019 and that two-year stack is almost the key number now. >> that really is the key number right now. because 2020 was i'll say interesting year, a lot of people are looking at two-year numbers, and that's the way we're looking at things also, and so we're really pleased with the way the u.s. performed in the first quarter. they did a great job of continuing the momentum that we built throughout 2020, and then we were able to put up a 13 1/2% comp in the first quarter this year internationally, it's a little bit of varied, depending on the market because there's still a lot of restrictions and curfews going on in some of the countries in europe.

>> so in terms of system wide sales guidance, can you talk about the trajectory of where that's going and what's driving it we always talk about mcdonald's, especially breakfast day parts being a function of employment, and people actually having an office to go to and somewhere to stop along the way is that what's going to drive the remainder of 21? >> one of the interesting things that's happened over the last year is we have been able to adjust when people haven't gone to offices in the u.s. especially, we have seen a big dramatic increase in digital sales and in delivery sales. same internationally on the delivery, and drive through front. but internationally, we need the dining rooms to open they're a bigger percentage of our sales there than they are in the u.s. i think that's driving our sales is a combination of a lot of things that have happened over the last year. so it isn't just digital it isn't just delivery, but when you look at everything that's kind of driving right now, it's

menu, it's really good operations we've simplified our menu, reduced our service times, and increased the effectiveness of our marketing. >> and i remember many many years ago a mcdonald's ceo, i won't name which one, told me, he said, you know, we could use a little inflation, and this was in a period where inflation of any kind was just too hard to come by. is this becoming too much of a good thing right now >> it's an interesting question because historically we do well in low inflation periods i'll say a couple percent inflation, we've generally done pretty well in those types of periods. we have seen some recent increase in commodity costs now. but the fed, i think, is doing a pretty impressive job right now of containing things so as long as they hold inflation around that 2% target that they're targeting, we feel pretty good about our opportunities.

>> right speaking of the fed, i mean, one take away from the presser yesterday is this repeated argument that these are transitory factors, they're squeezes because we're reopening this economy on such a large scale, and that this will be over the coming quarters is that how it's feeling right now as you're having to make purc purchasing decisions >> you know, our supply chain does a great job working with our suppliers. we've locked in a lot of costs this year. so for this year there isn't much of a concern as far as costs being too high, but if they continue to rise, obviously going into next year, it would be a bigger concern. again, we've generally done well in a multitude of commodity environments, whether they're up or down, we're able to adjust on a pretty timely basis in order to operate effectively >> i wonder if you can tell our viewers a bit more about some of

the individualized menus, and recently it's been bts it seems like you're arguing it's not just another menu marketing gimmick, that this is somehow reflective of a different way that fans interact with creators? >> yeah, so the famous orders platform that you're referring to is a perfect example of how all the elements of our strategy are kind of interconnected and work together. we started it last year with the travis scott meal in the u.s. that turned out to be extremely successful followed that up with a jay belvin, one in the fall, and the bts is the first global one. it will be in nearly 50 countries, and the effectiveness is it builds on a marketing insight that everybody has the go-to mcdonald's order i'm sure you have your own mcdonald's go-to order, but what it really taps into is everyone's go-to order, and then we're taking that go-to order, which is always related to core

menu, so it doesn't add any new items into the menu, then we use digital to effectively activate and engage with customers in a really fun and interesting way, and it's proven to be a great way to engage with customers. >> finally, kevin, just on dine-in, i know it's different in other parts of the world, but in the u.s., i was in a restaurant, mcdonald's restaurant the other way, no booths were taken inside, but the drive through line wrapped around the building. what happens to that notion, this place you go to and kind of hang out, and even if it comes back a little bit, how do you convince operators to invest another $100,000 in that place set? >> yeah, i saw you tweeted or re-tweeted earlier in the week about an interesting question of should fast food companies think about not reopening dining rooms. i'll tell you, we believe it's going to be important to reopen our dining rooms that's both in the u.s. and

internationally. even in the u.s., we have a lot of customers that want to interact with us in different ways, depending on what time of day, depending on who they're with, and depending on what they have going on in that day. so we have a -- we have a restaurant in our ground floor here even in corporate headquarters and, they open theed din the dining room a couple of weeks ago, when i walk to work, at breakfast time, there are groups gathering with friends and family, and the same thing on the way home at dinner time. as people start getting into the offices more, as people start getting out and about more, it's going to be important that we have all of our channels open. if someone wants to use the drive through on the way to work for coffee and a breakfast sandwich, they can do that if they want to then take coworkers and go to lunch, they can dine in, and if on the weekend, they're a little tired and don't want to leave the

couch, they can order in delivery we think it's going to be important to have all channels to make sure that customers have the choice of how and when they use us. >> we've been turning to you guys for clues about the broad economy, really forever, but especially in the past 12 or 14 months, and we really appreciate it again this time, kevin. thank you so much. >> thank you all right. the cnbc stock draft is back ten all star contestants from three time nba champion, andre iguodala to tiktok star, josh richards we'll select two each and compete to see who has the highest price appreciation between today and friday before the super bowl tune into a special edition of "power lunch" at 2:00 p.m. eastern. we're back in two. you got your new customers — they get our best deals. you got your existing customers — they also get our best deals. everyone. gets. the deals. questions?

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the big tax cut of 2017, remember, it was supposed to pay for itself that was how it was sold and generated vast economic growth instead, it added $2 trillion to the deficit.

it was a huge windfall for corporate america, and those at the very top instead of using the tax savings to raise wages and invest in research and development, it po poured billions of dollars into the pockets of ceos. in fact, the pay gap between ceos and their workers is now among the largest in history. >> president biden calling on companies to pay their fair share unveiling plans to hike taxes during his address to congress last night, this in the midst of corporate earnings season for more on earnings, the covid recovery, and of course the potential tax changes to come, we're joined now first on cnbc by david gitlin, chairman and ceo of carrier thanks for being with us. >> thanks for having me. >> i want to get your reaction to president biden last night. there's a lot of moving parts and a lot that has yet to be revealed in the law making process, but how are you thinking about and approaching

possible changes to the corporate tax code >> you know, look, the one thing that we don't want to see have happen is put american companies at a kcompetitive disadvantages, to companies that have converted to overseas or headquartered or domiciled overseas we have invested significant amounts in growth. we said that we were going to invest $300 million over three years. if you look at our r and d spend, it was 400 million in 2019 it's going to be 475 million this year. we're investing in american jobs we're investing in growth. what we can't have happen is have american companies at a competitive disadvantage through the tax code, which is exactly what is going to happen if some of these tax proposals go through. >> let's dig into that a little bit more, investing in american jobs, i think back to the last administration of president trump, your company was in focus around jobs in indiana for example, there was a big push by that administration to not only bring more manufacturing jobs back to the u.s., but just in general,

create more manufacturing jobs here we heard similar commentary from the president last night, albeit maybe a different approach what would it take, what is it taking for you to create more jobs here stateside? >> growth. you know, we're seeing -- we had said that we'd have 1,100 jobs in indiana we have 1,700 jobs we need to add another 3 to 400 jobs in collierville, tennessee. we cannot hire fast enough we saw in our first quarter, sales were up 20% year over year in fact, up 6% in the first quarter of 2019. if we keep investing in growth driving outsized growth. there's going to be help wanted signs on all of our doors across the united states. we need to keep driving innovation, keep driving growth, and good things will happen for american jobs. it's not through the tax code. we need a competitive tax code what we need to do is perform, deliver results for our customers, keep innovating, introducing new products and the

jobs will come. >> let's talk about earnings hvac powering results on the residential side in particular again. in terms of growth, economic growth or recovery, both here or stateside and also abroad, what are you seeing, and are things like commercial hvac, refrigeration, fire and security, beginning to power back up again in a more meaningful way. >> yeah, growth is just really across our entire portfolio. it's very encouraging, not only in the united states, but it's really global. residential hvac, and north medic america was up 50% year over year supplied business was in the mid teen range transport refrigeration was up 20% year over year orders continue to be strong orders were up more than 30% n. first quarter. now, clearly china was very strong china orders were up 100%, easy comparable it's nice to see order trends

gaining traction in europe where they were up in the mid teens and north america orders were up more than 40%. so when you see an index like the manufacturing pmi in the united states be at the highest level, 65, highest level we have seen in three decades, there's a lot of liquidity, a lot of pent up demand. when i mentioned the last time i was on your show, appreciate you having me back, i was more worried about keeping up with the demand than the demand itself, and we're really encouraged by a lot of the macro trends we're seeing globally. >> one of the other key themes of this earnings season, though, has been inflation, higher costs, higher commodity prices, you talked about it on your earnings call as well. are you able to offset prices or, i guess, raise prices faster than the increase you're seeing in costs >> we are, morgan. we're going to keep pricing cost in balance we're coming in, we knew there would be inflationary pressures

coming into the year, we're seeing an additional 7 million things like copper, steel and aluminum and tier one, tier two suppliers, there's a bit of pricing pressure there, and we are having to raise prices across the portfolio we have announced price increases recently in many parts of our portfolio globally, we'll offset that 70 million of additional head wind with 70 million of additional price. so we are clearly seeing inflationary pressures and some shortages in the supply chain. the good news is we did anticipate much of this, so we did actually authorize a stocking of inventory levels, so we have been generally keeping up with our customers' demand. it is something that's a day-to-day challenge. >> unfortunately we have to leave the conversation there i know you launched the abounds cloud platform, and you have been rolling out more tech and more offerings in the midst of the reopening efforts we're seeing, so please come back and speak to us a little more about that in the future dave gitlin, thanks for being with us. >> thank you >> april is financial literacy

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welcome back, i'm rahel solomon, here's your cnbc update foreign aid is heading to india to deal with critical oxygen shortages, including oxygen cons traitors from the u.k. and russia and the state department urging americans to leave india as soon as it is safe to do so due to those rising cases and limited access to medical care travel to india is also strongly discouraged. and turkey, a surge of last minute shopping as the nationwide lock down begins there. airport terminals are busy with people leaving big cities to spend the lock down in less crowded areas, and holiday resorts. and back here in the u.s., new york city will be dropping all covid restrictions on businesses on july 1st. mayor bill de blasio says the city is ready to fully reopen, though it's unclear whether mask mandates will continue through the summer but carl, de blasio saying it's

the summer of new york city, and i am here for it and ready. we deserve it. >> yes, i think we all are >> thank you, rahel solomon. apple and facebook, of course both reporting stellar results from companies that do pretty well normally. let's bring in senior analyst, laura martin, as a buy on apple and a hold on facebook nice to see you. >> nice to see you thanks for inviting me. >> i want to talk about the results, and position and sentiment afterwards, second quarter in a row with double digit gains in every product category, how long have you seen a quarter like this one from apple. >> the most important thing they said is their base of products reached all time highs you saw margin expansion of 400 basis points to 42%, and they added 40 million subscribers, so they now have 660 million subscribers. they have 1 billion active iphone users, which means one

out of two iphone users is taking some kind of subscription, all of which headaches their bundle stickier, and less likely that consumers turn out of the apple ecosystem. i thought all of those things bode well for next quarter and the quarter beyond also. >> all right so in terms of sentiment now, the point has been made, these companies are doing 50% year on year, and stocks have hardly done anything close to that. is the results catching up now to what stocks did long ago. >> you know, i think that there is some concern in this chip shortage because they said that ipads and macs are sold out and they had no idea when they would come back. they were big over delivers in the quarter. one of the issues is can the fundamentals, will it be held back a little bit what's going on with the stock today especially is that people aren't sure whether the overdelivery will be affected going forward by the

semiconductor, and compound shortages. >> gang busters numbers from facebook as well, with those shares up higher today too, we're seeing that resurgence in ad spending and certainly it's benefitting that company, but then when you factor in just to bring us back to apple, the ios update and the focus on privacy, how is the company, how is facebook positioned to navigate that and what does it mean for those numbers, for those financials through the rest of the year >> that was the most interesting thing about their call because they had sent a letter to regulators saying that apple does not believe it was going to ruin facebook but they told wall street it wasn't going to have an effect, so i was very interested in how the ceo was going to navigate the second quarter guidance because apple's idfa just went away this week. they just started that 14.5 upgrade this week. basically what they said, what the cfo said for facebook is that they were going to have at least as rapid revenue growth, year over year revenue growth,

which was 48% reported or a little better, which would imply that idfa isn't having any negative effect, which makes you wonder basically they stuck to their wall street story that idfa actually won't have an impact, even at the same time where they're telling congress that apple's a monopolist and shouldn't be allowed to do this to facebook, mostly. so i think that's really an interesting line they're trying to navigate. we'll see what really happens to the numbers in the second quarter. but from some of the verbiage, they were acting like they were scrambling to react to the idfa, even though idfa going away was supposed to happen last september, and apple extended it to this week they had an extra six months i don't know what they have been doing, if this is really such a big threat as they're making it out to be. >> your point is a good one on the different messages to different constituencies at facebook laura, appreciate it as always,

we'll see you soon laura martin of needham. >> nasdaq has gone red to laura's early point about positions. fda with headlines on menthol. >> the fda says it plans to propose a ban on menthol incombustible cigarettes, after a protracted legal battle and many requests since the 2009 tobacco control act which banned other flavors but left men thon there -- menthol there on the table if you go back to april 19th, you see them impacted when the "wall street journal" essentially broke the news this was coming, and you can see the stocks are down. menthol accounts for 35% of the u.s. volume for cigarettes so it is a significant part of these company's business the fda saying they expect the action should save lives banning menthol, the last

allowable flavor in cigarettes, and banning all flavors in cigars will help save lives particularly among those disproportionately affected by deadly products. guys, the industry does expect this could take years to get implemented and a long legal battle will follow g guys. >> 35%, i didn't realize it was that high. we're getting news from space as well jeff bezos blue origin will sell tickets for rides on space rocket new shepherd. no details yet on price. more info is expected next week on may 5th a long awaited move coming on the heels of another successful test flight earlier this month, as they prepare people past the edge of space. check out shares of virgin galactic its competitor, shares under pressure, down 4%. meantime, check out shares of ebay as well those are also getting harmered. down 11% the company reported a beat on

both the top and bottom lines, but warned that pandemic sales boost could fade soon. the ceo will join us eluvexcsily next monday. we'll be right back. stay with us did you know that petco, is now a health and wellness company? their groomers work wonders for my confidence.

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while we lead up to the launch of our special event, highlighting america, we're highlighted extraordinary people making a positive impact in their communities. this morning we're taking a sneak peek at the special as we reveal the 2021 inspiration list today's savannah guthrie spoke with the honoree talking about her husband, also an honoree. >> alex, such as inspiration to people were you surprised at how many lives he touched and how much meaning he has for so many people >> yes, i was, and i think alex was too. i think one of the beautiful things, the blessings that came, if you can call it a blessing, was that he got to really see the outpouring of love and admiration that he gave to the world. and some people just, you know, you don't see that while you're still embodied

you don't get to really witness all of the love that, that people feel for you, and i know that that was in and of itself a huge inspiration for alex. >> you'll hear more from jean trebek and many other incredible individuals on inspiring america. the 2021 inspiration list airs saturday may 1st on nbc at 8:00 p.m. and here on cnbc may 2nd and 3:00 p.m. eastern time incredible stories coming out of this pandemic. >> and must-watch tv carl, thank you. after the break, exclusive royal caribbean ceo. stock's down a little right now. we'rba itwmitee ckn o nus. you got your new customers — they get our best deals. you got your existing customers — they also get our best deals. everyone. gets. the deals. questions? got it. but, why did you use a permanent marker?

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you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. welcome back royal caribbean, and the ceo seema, take it away. >> fresh off the earnings call richard, welcome back. stock up as much as 5% an hour ago. just turned negative i think investors and travelers are trying to understand this new guidance from the cdc. it doesn't mean you can sail from u.s. ports this summer. >> well, i think it may, and

we're really very pleased and excited, because it really does support the pathway that we think is achievable, practical and safe so, yeah we're feeling pretty good. >> it's the simplest way of getting back to seas requiring all passengers or 95% of passengers to be vaccinated how do you do that in florida? the cruise capital of the world. you invested billions of dollars in ports and terminals when the governor of that state is basically telling companies and ruselines they cannot require passe passengers to be vaccinated. >> you know, the cdc letter provides -- shores there's still work to be done and we need to get through the details -- provides two pathways. either will be very viable look, the vaccines are coming. 80% of our guests already say they intend the get the vaccines

regardless one way or the other, we think this provide as route, actually, two routes if everybody is vaccinated, or almost every, that is a faster route,slightly faster route, but i think it will be on the margins. we are really, thinking giving two pathways both of which are feasible to be done by, by july so, yeah feeling no pain today. >> i know it's going to be a busy next couple of weeks for you as you try to ramp up sailings, but same time, the number one issue the travel hospitality sector is facing now, this includes the cruise lines, labor the cruise lines employ a number of crew from around the world, including india. i wonder as you ramp up sailings whether the crisis in india and travel restrictions in general will contribute to a staffing shortage >> oh, i think they'll make our life more interesting, but we

don't anticipate it will cause any kind of a shortage obviously, all of these factors make it more difficult the requirement to get vaccines for our crew is an issue but we think we have ways to deal with that, and we've been talk tocing to our krucrew polling them frankly, they're so eager to get back we don't think that's going to be a significant part of the issue. obviously crewing makes us successful ing in there san issue but i think we're confident the crew are eager to come back and we have ways to overcome the regulatory and other issues that are facing us. >> richard, morgan when you're already offering cruises out of parts of the caribbean and europe now, given what we've seen in terms of reopening efforts in those areas versus here, i realize that now we're starting to get more guidance and more clarity, potentially from the cdc where the summer is concerned. longer term, how are you thinking about the mix where

your ships will be operating out of >> well, i think longer term there won't be that much of a difference obviously, as we've started up in other places, that has raised new markets for us, and that may give us more opportunity, but i think -- we're really talking about a relatively short period of time during which this is that relevant. it's a matter of months. and so -- i think that this will open up new markets for us it already has i think that's constructive for us but i think fundamentally the marketplace is still very much about half guests, crews guests cruise out of the united states. half elsewhere makeshift marginally but not thinking that's going to raise massive changes. >> richard, you're two bookings from bermuda and bahamas what

does cruising like like a a choice for so many american families kids not eligible for the vaccine does that constrain bookings >> well, kids today aren't eligible, but already one vaccine is submitted for approval and expected to be approved within a month or so for children down to 12. of course, as you know, the younger you are, the less of a concern it is. so i think it is moving in the right way. in terms of the markets, we haven't commented on specific markets. of course, we're trying out new destinations and new itineraries. so we'll see different things, seema, in different markets. but overall we've been very encouraged by the pace of bookings and by the clear eagerness of people to get back to living their lives and that includes taking their cruise vacations. >> bookings are there.

now just need that final guidance from the cdc. you say a matter of months before you return to the u.s watching with bated breath richard, thanks for joining us ceo of royal kcaribbean. >> that does it for us here on "squawk on the street. "techcheck" is going to start right now. ♪ good thursday morning. welcome to "techcheck. i'm carl quintanilla with jft j jon fortt and deirdre bosa. is there a bear case to be made facebook shows often its own results. why that stock is ripping higher later, qualcomm's incoming ceo joins us first on cnbc