a full rundown is straight ahead. twitter shares crushed despite better than expected results. we'll show you how the company performed in the quarter mostly devoid of some guy named trump of his tweets. another big day for earnings we hear from chevron and exxon and bring you the first interviews with executives from both it is friday, april 30th this is it you know what's next sell on main go away. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc welcome to friday.

i'm becky quick along with joe kernen and andrew ross sorkin. markets were up across the board yesterday. s&p 500 set another new record you see a pull back this morning. dow was up about 240 points which is a gain of 0.7%. this morning, it is indicated down by triple digits. s&p futures are down 16 points the s&p setting the new record yesterday. nasdaq off 73 points it was up slightly be gain of 0.2% in the treasury market the 10-year picked up after we heard from the fed the 10-year note is steady at 1.647% we look at the "squawk stack." it is not the s&p that sets the highs. there are records everywhere you look yesterday, we saw a record for

the transports that is leading the way this morning. they are indicated up by .9% financials are setting a new record yesterday real estate, materials and industrials. you have wti yesterday, it was up once again. it was the highest close since march 15th it is down this morning by 1.5%. for the week to date on yesterday's close, it was up 4.6% for the month to date, almost up 10%. 9.9% gain. that has helped the big oil companies as well. as joe mentioned, we have exxonmobil and chevron reporting earnings today we will speak with the ceo and cfo later this morning to hear about the results. andrew. thank you, becky let's talk about the record amazon reports they were blowout numbers across the board. profit more than tripling in the

first quarter. revenue soaring 44%. it is offering guidance that continued to blowout expectations forecast of the quarter sales between $110 billion and $116 billion. that stock up more than 2% joining us now to talk all about this is mark mahaney the senior managing director at ever rsi mark, you are taking it up to $4,500 do the math for us >> we took up the price target people knew we were going to have a strong march quarter. the tell came from google results and facebook results and shopify. the surprise was the june quarter outlook. you are going up against the tough comps.

amazon is showing it can maintain the same or better growth post-covid in the june quarter prior to covid i.e., they where the winner in the covid crisis all of the segments with a pull forward of demand and the flow to the bottom line for amazon. that is why people are bulled up this morning >> you used the phrase a permanent pull forward this is the question people ask about amazon they ask that a lot about the tech companies with great success during the pandemic. do you think amazon is an out outliar? how much of it is ultimately permanent? >> that's the $100 billion question you are asking, andrew. there were a few pull forward winners. facebook is one. google amazon shopify. other companies like e-bay with the spike in demand. now they entered the covid comp

quarter in june. s showing year-over-year declines. amazon is more permanent amazon reacted they were aggressive with investments last year. added 400,000 new employees. they spent a lot of time building new distribution centers and tapped into areas of spend they didn't really have a great presence before like groceries. that is what has allowed them to enjoy the permanent pull forward of demand. >> in terms of the retail business versus the aws business how do you see that playing itself out >> the advantage that amazon has is they are in the retail category which is modestly penetrated on at 15% to 20%. there is a lot of growth under way for them the interesting thing is what they have done the build out of one-day delivery they announced this two years

ago before covid covid allowed them to accelerate that ability they are getting quicker and faster and closer to go from order to one day and then to same day that locks in consumers. it is enticing >> what do you make of the shift? it sounds like they shift prime day which is a huge sales day for them >> yeah. it usually adds 3% or 4% to the growth that helped with the june quarter outlook. typically they run that in july. last year, they ran it in the december quarter that is always a nice boost. it is a way for them to continue to grow out their prime customer base which is now over 200 million. frankly, one day, that number will double or triple long-term. prime day helps build the

customer base. that is a positive for amazon. >> let's pivot and talk about another big tech company with earnings that weren't nearly as good as people were hoping for that is twitter. last evening coming in on the lower end with users and lower end of guidance. the company, overall, posted earnings of 16 cents a share it beat it by 2 cents on the estimate revenue coming in ahead of expectations what threw everybody was the monetizable daily active users and the guidance for the next quarter. >> the big issue i had and the markets had with twitter is the challenges with product development. they had a couple of mis-hits. they are trying to roll out products for direct response advertisers that have not been comp compelling

the growth rate is half of that of its peers of snapchat or pinterest. every major internet advertiser platform is google or snap showed accelerated growth. not twitter. it was basically unchanged it is good growth, but something is missing they don't have a good enough ad product for small or medium size businesses which is where the growth is on the internet today. that is the product challenge that twitter has they acknowledged it they talked about it in the march quarter. t it will take them a while to catch up >> is it a product problem or is it a trump problem >> it's primarily -- i don't think trump is the major factor. i get your point on this i don't think it is the major factor it is a problem with advertisers.

it is a product problem with users. this has been a constant struggle they have a couple of hundred million dedicated users. if you want to breakout of that, you want to get more of the mass market following, you have to make the service more intuitive. things like topics and interest lists helps people with twitter. the product development here seems to be three to four years delayed on the consumer side that is something they need to accelerate they acknowledged that it will take a while. >> i have heard jim cramer and others talk about the new product rollout. twitter spaces which is a bit like club there house. they bought a number of companies over the past year to create a newsletter service. is that enough for you >> yeah. let's get the products out they are not out enough. they allow 7,000 topics.

they should be allowing hundreds of thousands of topics there is a lot more this company needs to do. they know that my guess is we're going through -- they announced they will accelerate the product development this year. i think this is something that will take 12 months to play out to see if it is effective. that is my guess is how long the stock is in the penalty box. >> mark, great to see you. talking about the two big tech companies this morning >> thank you a programming note twitter cfo ned segal will join us at 8:35 a.m. eastern time joe. $52 billion. twitter. i didn't realize that. florida legislature passing a voting bill to include restrictions on drop boxes voting rights activists say this amounts to voter suppression

they say they provide avenues for voting the measures were menant to protect from fraud the bill was watered down from the earlier proposal to ban drop boxes. and prohibits handing out water or food as long as there is no influence. thanks, joe. when we come back, president biden is looking to put his stamp on the u.s. economy. we will look at how his proposals could change the american growth engine that's next. and big energy earnings. we hear from the leaders from chevron and exxon. the ceo and cfo first on cnbc interviews "squawk box" will be right back. >> announcer: this cnbc program is sponsored by baird.

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the eu, european union, formally brought charges against apple and the app store. the use of the in-app purchase system which charges merchants a 30% fee, seems reasonable, they

say it limits yapp developers te ability to make more generous with the tip. 25% to 30% if you are generous. >> if you are hosting it 30%? that's your platform i don't know what stocking fees are on some grocery stores >> you have to charge a fair amount charge a fair amount do everything -- >> what 's fair? what's fair? >> that's the question >> what's the definition of fair >> you say it over and over. got to be fair who will disagree? it has to be fair. it should be fair. right? that's fair. >> i want to be the decider. i want to be the decider >> you know who the decider is he's in texas.

i think he's in houston. >> that's a good word. decider. >> he was the decider. it's a hard job. hard to be the decider you have to decide a big bet on big government. if the president's proposals pass congress, it could shape the economy. steve liesman joins us now with a closer look. hey, steve >> reporter: good morning, becky. president biden is gaining approval for $4 trillion in additional spending. he would usher in a boost of share of gdp not seen in the u.s. in decades. federal outlay spiked during the recession and they come back down you can see the unprecedented relief in the covid crisis it pushed almost off the charts there. that will runoff the plan would boost the share about 2% for eight-to-ten years.

that is a running boost higher the economic advisers told me yesterday we think we're getting back to the 1960s where government investment has a share to support economically game changing innovations. the former head and ceo doug eakins says this will not lead to increased growth. he tells me and i quote, at some point to keep them going, you need more money. they are layered on top of existing shortfalls with social security and medicare. the spending would be historic for the united states, but not unpress den unprecedented economies. france is the highest with 55% of the economy coming from government spending. that is above italy and germany. the combined federal spending is

above switzerland and ireland. that brings the u.s. to the level of great britain and where they are right now this debate puts the cost of higher taxes on corporations and wealthy. it benefits universal pre-k and community college. it will show up more in the quality of people's lives than it will in gdp becky, closer to the free bread of france and the mutton like great britain. >> this raises the question these changes may not be something that show up necessarily in the benefits, but especially not in the detractions for some time to come i was looking into some studies that have been done on this. they say if this is something that goes forward, you may not see it in the next few years by 2050, they were looking at the growth in the united states slowing down to 1% based on the

changes taking place that is what is tricky you have to look at it for long periods of time and anticipate what it means for the benefits and drawbacks. >> difficult to model. especially with things like child care and things like universal pre-k. that's a great example you can end up hurting potential u.s. growth and at the same time, the programs are pre-k seem to have benefits over decades. >> right right. did you say the federales earlier or was i hearing that? >> i don't think i said federales. i think i slurred something. i can look back in the script to see what i missed. >> that's good i have been seeing pancho and lefty ever since thank you for getting me going this morning >> there you go. >> see you later andrew thanks, becks.

coming up, we will dig into the proposal with the capital gains tax. who pays that tax? robert frank has a special report next. a huge line up still to come ceos of exxon and chevron. we have billionaire investor leon cooperman and ned segal all here on "squawk" when we return after this

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business, you can turn your frontline reps into bottom-line superheroes. (keyboard taps) (bubble pops) now, his emails always strike the right tone. - [crowd] hooray! - [diana] learn more, at grammarly.com/business. the white house says the capital gains tax would only hit a small number of rich people. who exactly are these millionaire earners?

robert frank joins us with the latest on that good morning >> good morning. the capital gains tax proposal is those with ordinary income of more than $1 million a year. that is about 500,000 taxpayers. what the white house calls the top sliver research shows the earners are not the same people every year the real number is far bigger over time. a study at the tax foundation looked at million dollar earners. more than half made the list for one of the nine years. just 6% were million dollar earners over the entire nine-year period o one-time capital gains windfalls were the reason many people made the list and many fell off many were one-time wonders people who made a million in one year that sold a business that

they spent a lifetime building capital gains accounted for half of the millionaires. millionaires are a transit group. capital gains is a reason. it won't be adjusted for asset inflation. the capital gains rate would hit millions of taxpayers, not just half a million, over the next decade guys >> you are making this tougher for us, robert you are making the issue tougher. when you look at those type of numbers, is there any way to build a tax to the extent you want to have a tax like this that would not capture the one-time wonder? has anybody thought through that >> i guess you could say you have to make that amount just in capital gains or, you know, combined income over a two or

three-year period. there would be a way to gain that system as well. i don't think necessarily the goal or the tax is necessarily wrong or immoral or this is the reason not to do it. you have to be more honest of what the numbers really are. it is not just a sliver of 500,000 people it is 500,000 people many of whom change every year over a period of time, you are talking about millions of taxpayers. be honest of what the numbers are and who the group really is. these are people that don't make that amount every year they may make it one year. maybe it is fine to pay that tax. $1 million in one year still makes you wealthy. at least for that year i think it is important to put real numbers behind this and explain who these people are and how they really make their money. >> the ultimate honest broker. robert frank with the news this morning. thanks for keeping everybody honest i appreciate it. joe. thanks, andrew

as long as it's fair i don't know how many times i have to say it coming up, commodity crush companies facing soaring prices for corn, sugar and wheat and a lot of other ones. wait until you see the "squawk stack. we'll talk to the u.s. president of kraft-heinz and the troubling shortage of ketchup packets. as we head to break. oppenheimer is upgrading comcast. the par ent company of the network. the growth outlook is improving for each segment of comcast business coming out of covid and nbc universal is recovering better than expected i can't believe we mentioned that in "squawk box.

the new price target $75. we'll be right back. >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. my something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.

chevron just reporting look at the numbers just hitting. chevron earned adjusted number of 90 cents a share. that is in line with what the street was expecting revenue came in at $32 billion versus the $70 billion that the street was estimates the results for the down stream earnings were hurt in part because of the ongoing down stream margin and effects that came from the pandemic and impact of the winter storm that they are working through earnings were strengthened because of the higher oil prices as the economy starts to improve. we have seen wti trade above $64 a barrel

that is a huge improvement from where we were this time last year remember, a few weeks ago, a year ago a few weeks ago, people had to pay you to take oil off their hands. a brief moment, but oil prices under pressure as the global economy started to shutdown. this morning, chevron shares are down 90 cents on this. again, in line on the bottom line and the beat on the top line we will speak with chevron cfo pierre breber at 8:00 a.m. eastern time that is a first on cnbc. waiting for quarterly results from the energy rival exxonmobil those numbers are due in an hour's time. 7:30 eastern the ceo of exxon darren woods will join us after that report hits the wires joe. thanks, becky. in keeping with both the energy group and what we're going to be talking about in a second with food commodities, et cetera, there are interesting things on

the "squawk stack. i added something which is really cool and unheard of and i put gold on there. gold's at $1,700 for whatever reason check out another precious metal. palladium. for the first time ever it hit $3,000 an ounce earlier today. there's the chart that you can see. i looked at a long-term chart 10 to 12 years ago. it was $200 an ounce the reason it is interesting is it is used in catalytic converters the reaction that tries to cut down on pollution and the epa getting strengthestricter with int internal combustion engines. suddenly as we get -- what is

interesting, we arstill doing a of internal combustion engines the demand look at the demand for palladium. if all of the gold bugs had been palladium bugs the famous ones whined and cried about bitcoin and wrong about that there is the $3,000 we were looking for in gold which seems to bei stuck below yesterday, the kraft-heinz input costs are going up coffee, sugar, wheat, corn up more than 12%. there is no inflation. just relax joining us now is carlos abrams rivera the president of u.s.

kraft-heinz. i know you will add a couple of lines this summer and you will be supplying food suppliers at that point this is not a long-term problem for ketchup lovers with fries? >> first of all, thank you for having me this morning there's big confidence you can put as much ketchup on your burgers or fries you're good. for us, the reality is a good thing. people just love heinz ketchup and want to continue to purchase our products in the store or in the restaurants. now making sure they take the product home for the takeout and delivery this is a lot of news, joe this is something we saw early in the pandemic. we saw the shift on restaurants going from in-person dining to takeout and delivery we were able to take actions to expand the number of shifts in the factories and whether that

was making sure we focus on the things that mattered to the away from home users. we accelerated the line that you spoke about. a year ahead to make sure we have full capacity to make sure we still are able to deliver on what is needed in the marketpla marketplace. >> i don't want to start using mayo even if it is light mayo you have the numbers the numbers reflect -- you are not a stay at home stork,ck, bu you a lot of people had the great well known brands you are known for. tell us about whether the rise in commodity prices hurt margins? sales held up. >> we have commodity we are actively managing we are closely watching what is happening and at the same time, there are things we can manage data driving pressure on

inflation. the reality is the things that we have pretty much under control and we feel good about regarding inflation, it is something we actually are managing very well right now we are doing it between revenue management tools to help us be smarter about how we deploy our dollars and making sure we think about what else's we could be adjusting as we go forward pricing is an option and it is not the only option we have. we are more focused on making sure we have operational efficiencies to balance all the inflationary costs coming at us as we can manage as we go forward. >> do you have an opinion on whether the fed's right? that it will be transitory you deal with it every day and you see what is happening. is that your view? >> you know, for us, i think i'm certainly -- i know a lot about

ketchup and mac and cheese i'm trying to get it into the thinking what we are focused on is control the controls for us, we are looking at the headwinds we can manage through the active managing. there really isn't something that is beyond our control that we feel is going to be deteriorating our business going forward. we feel about about where we were and we continue to focus on those things we can control. >> carlos, what are you and the other higher ups spend all your time thinking about? is it getting the right shelf space? logistics? getting it there as efficiently as possible? efficiencies the head of kraft mac and cheese ja jalapeno flavor. is innovation a big deal skill >> for us, you know, everything

we spend thinking through is our consumer it starts with our employees that is our first consumer i'm proud of the level of engagement and creativity from our employees. then thinking about our customers and making sure we continue to evolve with them and give them transparency on building trust with retailers and helping them in terms of how they want to continue to evolve with businesses. whether it is brick and mortar or online. what we are focusing on is drive our consumer fplatforms. bringing renovation. we have been bringing that in the last 12 months you are seeing that in the marketplace. whether that is new products coming out now from oscar mayer or that is new advertising and new packages from products whether that is you love mac and cheese there is a mac and cheese in a

cup that is fully recyclable a compostable product. that is us making sure that we are providing things consumers are looking for and we provide that with our brands that is where we are spending our time >> you have to make it calorie free that might be better for mac and cheese mac and cheese is not good for me at this point in my life. thanks, carlos thank for playing along. we'll get the vaccines out and we'll all move forward, carlos thank you. >> through, joe. >> plenty of ketchup, andrew. >> i love the ketchup. ketchup on everything.

coming up later are on the show, leon cooperman he is in a tiff with senator elizabeth warren we'll talk all about it. coming up, here is what she said on "squawk box" on tuesday >> let's start by asking leon cooperman just to pay 3 cents, since he's a billionaire, in a wealth tax make the contributions so we can use it to rebuild our infrastructure and so we can use it to support our built and so we can use it to educate our children that is a good starting point for me

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and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. welcome back, everybody, on this friday morning. let's look anot what is happeni with the futures dow futures are down by 140 points just about 45 minutes ago, we were looking at the dow down 95 points there is weakness that has come in nasdaq indicated off by over 100 points a decline of 104 there has been real weakness in twitter shares and tech names. amazon was a big performer, but it is giving back gains it racked up last night also, look at the s&p 500. indicated down by 22 we should point out that at this point, s&p yesterday closed at yet another record that is about 25 or 26 records that we have seen so far this

year for the s&p 500 laggards and chevron is down the highest level we have seen since back on april 15th trading above $64 a barrel that is a big gain for chevron and exxon and other oil companies. this morning, we got the results from chevron a little bit ago. that stock is seeing a pullback of 2%. there has been a run-up in shares oil prices up 10% for the month. that has helped all of the majors intel is down 1.3% cisco off by 1.3%. microsoft off 1.1% we have the special programming note for you on saturday tomorrow, berkshire hathaway holding the annual shareholder meeting. it is a virtual meeting. warren buffett will take questions for four hours he is joined by vice chairman

who will be with them. if you have any questions as a shareholder, send them to berkshirequestions@cnbc.com. we will ask as many as we can get to in the time allotted. when we get back, we dig into the earnings move with amazon and twitter with insider ceo. and the run for the roses is back hol frank hole land is in the b bluegrass. >> becky, the horses are warming up for the kentucky derby. we will look at the economic impact of the derby and the revenue is driveto oern th cities around the nation that and much more when" squawk box" returns when you're in a meeting, ashley can take a message. she's not available, but i'd be happy to take a message. and if you're stuck in court, lisa will let your clients know.

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the kentucky derby returns tomorrow and we have the most exciting 2 minutes of sports covered. contessa brewer is taking a look at derby betting frank holland is in louisville he has the economic impact with the run for the roses. frank, good morning. we'll start with you. >> good morning, becky more than $400 million in economic impact is generated pre-covid. this year with capacity capped at 50% the pandemic reducing the desire to travel, stay at hotels and dress up for large public gatherings, the impact only a fraction, 35 million now the big tech state fair and pride in the bay, two more

examples of boost that might not generate the same revenues this year it's hitting the hospitality industry the hardest hotel occupancy at 65% when normally it would be at 99 to 100% it drives customers to the gig economy with rates for ride share and airbnb it's spiking. it's harder for local merchants and big businesses to plan with so much uncertain. >> how much do you invest in derby weekend? how many people do you hire? really the work force issue here in kentucky has been a real struggle with so many people out of the work force over the last year, finding the workers to make sure we can pull off derby weekend has been a struggle. >> reporter: and this impacts a lot of alcohol stocks. the maker of wiffer reserve says derby parties globally are historically a big revenue driver we'll have to see this year.

looking ahead, the pandemic on cinco de mayo, it will impact jose cuervo. joe, back over to you. >> can you give me -- have you got any inside info, frank can you help me out? >> yeah. i was by the paddock i was petting the horses i fed a few carrots. they said to me very clearly, tell joe he's not a good gambler. stay away from this. >> did they use the -- did they use that voice, frank? so you're talking horses now that's good. that's good. >> that's back in the '50s, joe. i don't know what you're talking about now. >> you know about it okay, fine you know what -- >> of course, a horse is a horse of course of course. seen it many times. >> play dumb and then you even know the theme song. thank you, frank now to contessa and the big money being wagered on the race.

maybe you've got a pick for me, contessa >> reporter: well, you know, i think essential quality is the pick for a lot of people we can get to that in a minute i wanted to mention, this might be a no brainer to you that the kentucky derby is the biggest event of the year for churchill downs but it might be surprising to learn customer acquisition wise because the brand is inextricably tied to the brand itself it makes it cheaper to win new customers. the marketing strategy year round focused on the derby, introducing new players to twinspires that's churchill downs betting platform the challenge is, it has to keep those players. >> what's more difficult is to offer a quality product that keeps your customers there when they're not always making money, when you're not always giving them player incentives to play that margin is ultimately how you have a successful gambling business. >> reporter: churchill downs

says it gets two more competitive advantages it owns the content and feeds it to twinspires. second, its history, its licensing is all about horse racing so draft kings, for instance, doesn't have pair a mutual licenses that are required to accept bets on horse racing last year $80 million was wagered on the kentucky derby with no live fans present. that was a big deal because traditionally this has been a bet in person sport. covid sent a lot of these gamblers go online then we saw this first quarter 2021, twinspires revenue up 39% over the prior year. they are taking it, they are running with it, joe >> wow it's such a quality. million dollar bet in bitcoin on essential quality? >> reporter: that's -- yeah. apparently there's some hedge fund investor type in new england who made a billion dollar bet on essential quality

which is 2 to 1 the favorite he did it through this off shore site called bet us racing and i asked the ceo of churchill downs about it and he's like, one, it's not regulated, it's not taxed. we're not getting a share of that, which by u.s. law we're required to get a share of that bet. i said, what about betting in crypto in general? he's like, if the regulators adopt it, sure, we'll be there but we're not going to be early adopters. >> time to pick another one here, contessa essential quality can win from on or off the pace on a wet or a fast surface, just so you know you know, there's one of the horses named super stock super stock, is that a sign for us, do you think >> reporter: i mean, we do work for cnbc and we are allowed to bet on horses so, yeah >> you know where we -- >> i don't know. i'm a long shot -- yeah, we can watch it on nbc.

can i just say one more thing. >> please. >> aren't you a long shot person wouldn't you rather put down -- >> super stock is 30 to 1. super stock is 30 to 1. >> there you go. the highest. >> there's a 50 to 1, helium helium and saint hood also and keep me in mind. there's four or five -- there's five 50 to 1 brooklyn strong. brooklyn strong. >> it's far less interesting without a pen in your hand and money in your hand, joe. >> keep in mind, fill phil lebes going to bet on that one yeah, be sure to watchful coverage of the derby happens to be on nbc. the best place for it to be. i think tirico will be there, the best tomorrow at 2:30 p.m. eastern. still to come, a huge lineup we have exxon ceo darren woods, ceo of chevron dick parsons

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we've got reaction straight ahead. quarterly results from exxon mobil. the numbers and an exclusive interview with ceo darren woods is just minutes away. grading the president's first 100 days in office we'll speak with dick parsons. the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky and joe kernen. the dow looks like it's down 164 points the nasdaq down about 95 points. the s&p 500 up 24 points here's what's making headlines

at this hour two energy giants to tell you about right now reporting earnings this morning. exxon mobil, it's going to be out shortly. bring you those numbers, of course already heard from chevron adjusted 90 cents per share. that matches the forecast. revenue did exceed consensus we'll be talking more with the company's cfo in just the next hour then you have exxon ceo darren woods who's going to join us a little later this hour meantime, amazon reporting earnings which have more than tripled from a year ago. it does not expect the pandemi will do a boost in online tracking we'll have a lot more on amazon's quarter in a couple of minutes. we'll see whether this is a permanent move forward if you will nestle, the world's biggest package foods company is buying nature's bounty for $5.8 billion. the move helped nestle expand

the health and nutrition business the company owned by private equity firm kkr will hold onto the sports and active nutrition business but i've been -- i've been taking those vitamins for years. nature's bounty is my brand. pick it up at cvs all the time and, oh, they have sleep -- >> gummies >> melatonin i don't know no, i -- just like a vitamin c, b. my nature's bounty. i have some in the bathroom. >> i feel like you're leading me to tell you that i take centrum silver i think you're leading me to tell you that. it's a heck of a vitamin and it's not just for people -- >> can i tell you something? >> yes. >> i want to tell you that. >> yes. >> i also take centrum silver. you say why centrum silver given that i'm such a young man after

my bar mitzvah here. >> so am i. >> as you are. if you read the magazines, which i do, they say that centrum silver is actually better to take no matter what your age than regular centrum for reasons i don't really remember anymore. on those days when you used to go to the gym and read men's health i used to try to get the exercise through osmosis just by reading it, they would tell you about centrum silver >> you know what happens -- we share that. >> we share a lot of things, joe. >> i'm happy we share the central silver thing it's awesome let's get a look at some early market movers. i don't know whether dom chu wants to volunteer any information. that's tmi maybe. >> i will weigh in and say that i do take centrum as my multi-vitamin but not the silver kind. >> think about it. >> to andrew's point, i take a pro biotic every morning

it's the nature's bounty pro biotic i buy them at costco because they're cheaper in bulk. >> like an oil barrel full at costco you'll never run out -- >> no, like a two pack two for one kind of thing plus they're on sale this month at costco >> no kidding? that's good information. >> yes, news you can use by the way, joe, to your point earlier about the derby, 3, 14, 18 trifecta box, wheel around a couple of big odds kind of -- long odds shots. anyway, let's take a look at some of the market minute stocks we have, things on the move. thematic elements as we close out the week we do know we're at record highs. we set them yesterday for the s&p 500 and nasdaq on a year-to-date basis the outperformer is the high performer. the nasdaq lagging a bit a nice move over the course of the last couple of weeks here and for the major market averages next up check out shares of the

sector movers and etf shares these particular ones are in focus. energy and communications services earnings reports driving a lot of that action the two outperformers. technology underperformer along with health care over the last week, energy and health care the real performers. apple and microsoft not helping that case there. then watch what's happening with twitter because those shares are now down after beating on earnings and profit and revenue estimates, check that out. it's still up about 4.5% down 13% pre-market trade because its user growth did fall a little bit slightly below expectations and its current quarter revenue forecast came in shy of expectations as well. keep an eye on the twitter shares will have an effect on that as well twitter chief financial officer nedsegal is coming up.

>> we'll get reaction to amazon results from henry blodget and then we're waiting for exxon mobile results expected in a couple of minutes. we'll hear from ceo darren woods directly "squawk box" is coming right back

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welcome back to "squawk box" this morning amazon's stock tripled joining us to discuss the blockbuster results at amazon and across the rest of the tech sector is henry blodget. he's the ceo of insider inc. jeff bezos invested early in business insider you sold that business nonetheless, what did you make of this quarter? it was a blowout we were talking to mark mahaney in the last hour and a lot of us have talked about did the pandemic pull forward certain things and is that sustainable he called it a permanent pull forward. is that what's happened here >> well, we'll see one of the questions is what's going on internationally amazon was particularly strong there. i think the united states is actually now ahead of some of the rest of the world in recovery so we'll see if there's some pull forward there. i think it's sustainable i do think it would be

unrealistic to think that when all of the stimulus runs out and the economy gets fully back to normal, we won't see some adjustment at amazon and other companies. i would think that's reasonable. >> you said when the economy gets back to normal and when the stimulus runs out, but depending on what you think is about to happen in washington, we may have stimulus in some regard for many years to come >> we may, but we'll also probably hit a peak of it within the next six months or so and then the question is what happens on the other side. things are just extraordinarily strong now certainly in advertising we saw this with tech amazon's benefitting from that, too. there's still an enormous amount of consumer spending going into amazon and others. i do think at some point we're going to reach a peak of that stimulus and then we're going to gradually go back to the organic economic growth. what we often see is that the stock market is peaking around the time that you are just at that absolute peak of enthusiasm

and things couldn't be any be better that's the time to wonder and say where are we going from here >> i don't know if you notice, but one of the numbers that popped out to me yesterday was the cap ex number. how much money this company spends to build. they spent $50 billion to build on things like infrastructure, data centers and the like. it was up 80% and they seem to suggest this was going to continue and, you know, we're going to be seeing warren buffet this weekend talk about, you know, his company but he has often talked about defensive moats. that seems to be the best defensive moat you could ever get because there's virtually no other company in america that's going to be able to build that kind of infrastructure. >> that's exactly right. i think if you step back from amazon and look at it on a multi-year or multi-decade basis, what the company has done again and again is foregone

current quarter and current year earnings for long-term investment and they got so much crap for that for so many years and it is now continuing to pay off in spades. and i think one of the things that a lot of other companies like hope in the u.s. can take away from that is it's okay to do that, that, in fact, that's what you should be teaching your shareholders that you should do to create long-term value because, boy, is it paying off for amazon. >> which then brings us to the question of other high flyers, shopify which has had an extraordinary run, both in the markets and the real economy we heard earlier that e bay is is expecting because of expectations around stimulus coming off they're expecting sales to slow.

>> which is what i was talking about earlier. peak excitement and cryptocurrencies and these things, andrew, these remind me a lot of the late 1990s. we're seeing it. often when we get in this, you never know how long it's going to last. anybody who says they know is not being honest with themselves but at some point usually these market conditions change i think at some point we'll see that fundamentally too but right now across certainly the big tech names that we reported, there's no other way to describe the results than staggering to see companies this size growing at this speed it's just we have not seen this before >> these are great numbers for amazon but do they put an even bigger target on their back? earlier today we heard from the eu in relation to apple and the app store where they said effectively that you can't charge 30% for apps the way

you're doing it. it's unfair competition. is that what's going to happen with amazon? the more successful they get the more cries we'll hear for that >> that's right. we'll see it with all of them. google, facebook, apple, amazon. this is what we've expected many years. bigger, more powerful they get the more regulatory scrutiny there is going to be we are getting reminders very frequently that it's not just the u.s. regulators and european regulators are looking like they're going to be more aggressive and the companies have to deal with that what i would say is i don't think that fundamentally changes the outlook for the companies. i think these things will take a super long time to work through. i think they're very complex questions whether amazon has a monopoly position. certainly not in retail. are there other businesses so this will be very protracted and going back to the microsoft situation that i know we've talked about in the late 1990s,

the big impact on the company from that is more a change in attitude and competitive intensity. it wasn't a regulatory hit >> right henry blodget, always good to see you. have a great weekend. >> thank you absolutely becky? >> thanks, andrew. when we come back, ransomware and cryptocurrencies. could new regulations be on the way? that story is next. exxon mobil results and the ceo darren woods we'll speak to him about the quarter and the proxy battle taking place "squawk box" will be right back. time now for today's aflac trivia question. how many hours does the average american driver spend in traffic? the answer when cnbc's "squawk box" continues aflac! what a day of upsets. ha ha. jill is certainly upset with that unexpected bill from her back surgery. aflac! let's see that one more time.

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the answer to the aflac trivia question, 38 hours a year still to come on "squawk

box," our exclusive interview with exxon mobil chairman and ceo darren woods plus, twitter shares sinking in the premarket after reporting first quarter earnings we'll dig through the numbers with the company's cfo ned segal and a first on cnbc interview. first, during financial literacy month cnbc is sharing messages from business and thought leaders about the importance of financial education. here's mark moriale, the ceo of the national urban league. >> talk to the children and grandchildren about money, about the financial system, about the difference between purchasing niceties and necessities, about the difference between an appreciating asset and a depreciating asset often times we're too guarded about financial issues and money issues we have to learn to talk to our children more about that because it is through that sort of exposure that they're going to arlen.

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welcome back to "squawk. the number of mentions of inflation on earnings conference calls has soared as commodity prices spiked. dom chu joins us with the look of the threat of rising input costs. >> andrew, roughly 40% that have reported in the s&p 500 are rough back of the envelope calculation have mentioned inflation or cost pressures at some point but it hasn't dampened at all what's happened with the earnings season, just the outlook. take a look at this. halfway through the earnings season it's been spectacular nothing short of it. earnings performance up 45% from the same as last time last year. and revenues, 11% higher just how superlative is it check this out if you look at the way we're talking about here, historic levels in terms of earnings growth take a look at some of the movements we're seeing here if it does come up on the wall. it's not going to come up just yet. not going to fly out there

if i could have shown you what was going to happen here, we've seen the strongest earnings growth since the q1 of 2010 up 45%. the biggest earnings surprise factor ever up 24% 87% of companies have beaten so far. that inflation commentary is what's gotten people worried gpc in terms of overall parts, we're watching and seeing sales, general and administrative inflation, ranging from wage inflation, and we're being specific check out mondelez, or kraft heinz, they say there is more inflation coming the higher inflation will require some additional pricing and some additional prokt duct tifts. whirlpool thinks the global material cost inflation will

negatively impact or business by $1 billion but we do expect the cost increases to peak in the third quarter of this year so at least there's some clarity for some companies around when they think, andrew, that inflation is likely to start abating a bit. just some commentary for color back over to you >> is there any talk of how they're going to push that onto the consumer that's when it all starts to get interesting. >> it's not just talk, they're saying explicitly. many companies are saying they will result in higher prices, especially for end users out there, specifically some of the food companies and specifically some of the packaged good companies. also consumer products companies. even restaurant brands chipotle is talking about it, this notion they could see higher prices reflected down the line it's why a lot of analysts, traders and investors will be looking for the commentary to see if anybody else out there company wise does what whirlpool did and put a time frame on when they think some of that

commodity cost inflation will start to go away that's got to be the real key, andrew. >> dom, thank you. i can't get out of chipotle myself without spending 15 bucks. >> i haven't done the quesedilla yet. have you >> i haven't back in the day, you used to be able to do 5 bucks, 5, 6 bucks kind of thing. now it's double, more than double. >> you know who has a $5 box right now? >> who is that >> talk to joe about taco bell >> they've always kept their prices low we'll see whether they're able to if commodity prices increase. >> nice to see you thanks >> becky >> run for the border. a special programming note tomorrow, saturday, berkshire hathaway is going to be holding its annual shareholder meeting it will be a virtual meeting for shareholders warren buffet and charlie munger will be together in los angeles taking questions for about four hours. they'll be joined by jane abel

you can send to berkshire questions @cnbc.com. we will get through all of them and ask as many as we can possibly get to in the time allotted. when we come back, exxon mobil ceo will join us on quarterly results, the company's board room and much more and later, legendary investor and omega family advisor lee cooperman will join us to talk markets, taxes and the president's infrastructure plan. we'll be right back. keeping your oysters business growing has you swamped.

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welcome back, everybody. exxon mobil just reporting this morning earnings from the oil giant coming in at 65 cents a share. that's better than the street's estimate of 59 cents revenue also came in above forecast let's take a look at the stock in the premarket this morning. you'll see right now that exxon shares, i believe, are still trading a little bit lower they had been lower before we got these numbers. chevron reported earlier this morning and its stock has been the worst performer in the dow since that happened. exxon mobil shares are down by 1% but not as weak as they had been when we first got a look at chevron's numbers. joining us right now is exxon mobil's ceo darren woods darren, it's good to see you this morning thank you for being with us.

>> good to be here, becky. thank you. >> so let's talk a little bit about the numbers for what we've seen in this most recent quarter. obviously the biggest story impacting all of big oil has been the huge rise in wti. what did that mean for you this quarter? >> well, i think the first quarter results reflect what is an improving market but more importantly it reflects the significant work and the strategic investments that we've been making over the last several years to reshape our portfolio to be amongst the best and most price competitive portfolio of assets in the industry we're starting to see the results manifest in the first quarter. >> is that around results for u.s. shale what are you talking about >> so developing an advantaged

set of investment opportunities and we restructured the organization in '18 and '19 basically moving 16,000 different jobs, organizing along value chains which have given employees a much better line of sight to the business, end to end profitability and accountability for that profitability and simplified the org structure. eliminated a lot of organizational spaces and the friction that comes with that. i think we have a much leaner organization that is more focused on the bottom line results and our employees can relate their activities better to those bottom line results that's what we're starting to see in the first quarter >> part of that also was a big cut to capital expenditures. it's the same thing we saw for many oil companies responding to the drop in oil prices are your cap ex plans in place from the most recent we've heard? 16 to $19 billion for this year and then 20 to $25 billion through 2025 >> yes, they are, becky.

we're still pursuing -- our cap ex plans are still in line with that outlook as we went into the pandemic and went into the industry, we had to reprioritize and continuing to invest in the highest return projects and starting to pace some of those other projects we have plans today to bring those back of our mind as the economies improve and as the industry outlook improves. those will be ramped up and that's consistent with the outlook we put out as part of our investor day and back last year after the board approved our plan >> hey, darren, you've been dealing with a lot of activist investors this year. some of them have backed down, reached agreement with the company. you did have engine number one doubling down reiterating their complaints in an 80 page letter they put out they want to see changes at the

board. they want people more reactive to climate change. where do things stand? what can you tell us >> when that came out back in the summer, activist investors that we ingauge with, ken frazier if i took the first activist, de shaw, had a good constructive conversation talked about how best to achieve the objectives through the course of that conversation became very clear we were aligned on the objectives of growing shareholder value. as discussions progressed aligned on how best to do that as we rebuild our plans that we had developed in 2020 i think that general alignment around where are we taking the company, the benefits we think we're going to see i think general agreement that

we were on the right track and the right approach we did a very similar process with owning begin number one i would say we agree certainly on one objective which is making sure company's well positioned to deal with the transition and to help society more generally evolve to a lower carbon future. but i think when it comes to how best to do that, engine number one wasn't particularly interested in engaging and understanding how best exxon mobil can contribute to that and grow shareholder value while transitioning. frankly, they were pushing us to wind down investments, wind down the business and move into solar and wind where we don't have a competitive advantage. have difficulty reaching any understanding as to how best to move forward is it de shaw on board with you? they might vote with engine number one is that not the case >> i can't speak for what de shaw is going to do. they've been fairly aligned with

the direction we've taken. i'm not aware of any air between ourselves or gap in terms of how we think we should move forward and what we think we should be doing. >> how about black rock and vanguard, have you discussed the plans with them? do you feel like your largest shareholders are on board? >> you know, we've had a pretty long engagement with blackrock and vanguard we have a very active engagement process. the changes that we've made in the board since i've been on since 2017, we brought in six new directors. all of those have been informed by discussions with shareholders and trying to address some of the concerns and we have a fairly routine dialogue and engagement with those shareholders and lay those plans out to them. i think over the years they have offered ideas and things for us to kind of focus on and we've evolved to some of that thinking i think today we're continuing to lay out plans my sense is they are aligned with the direction that we're

heading. once these continue to take a role and they recognize as steps in that direction trying to find ways to leverage what exxon mobil can uniquely bring to the space to help society transition to a lower carbon future while building shareholder value we recently announced a new business low carbon solutions. recently announced a concept of a very large scale carbon reduction opportunity in houston chip channel area and i think people are interested in that. we're going to need big steps and big reductions and companies like exxon mobil to help society make this transition successfully and at a low cost >> darren, i hadn't realized until very recently what you guys have already been doing in carbon capture it's something you've been working on for 40 or 50 years at this point someone told me exxon is theenty

exxon has captured more carbon than just about anybody else explain how that works and what it is. i don't think a lot of people understand that. >> so, yeah. we've been involved in that industry for a long time as you've stated, becky, we've captured more cot than any other entity in the world. 120 million tons, which is equivalent to about 25 million cars on the road in one year and so -- and operate that technology all around the world. we're doing a lot of work today to advance that technology and to lower the cost. one of the challenges in the existing technology is it requires more concentrated source of co2 and so the attractiveness of that technology is limited to certain applications and of course as you move out further and further and try to reduce more and more co2, you need lower cost technology to achieve that that's the work we've been doing

over the last decade, investing in r&d to try to lower the cost of carbon capture and store so we can deploy that more broadly. we in 2018 launched a carbon capture venture that looked at trying to deploy some of the technology we're developing. look for opportunities around the world to deploy carbon capture as a whole we have 20 project concepts that we're progressing and evaluating and making some progress there in the houston ship channel with 100 million tons in 2040 is one of those projects that we've been talking about with governments, both locally and at the federal level. >> when you talk about carbon capture, it sounds great but the reason you've been doing this for years is you can make money doing it it's something that you resell but captured carbon to companies like coke and pepsi and in other cases you get government subsidies for it how does it work if you're going to spend $100

billion building a plant like this in houston, how do you make money on it? nobody does that out of the good of their hearts. what's the business model here >> you have to go back to the foundations. if governments around the world and society as a whole wants to reduce co2, there needs to be an incentive to make that happen. as you say, a lot of the applications, capturing the co2 and putting it to use with our existing industry can make money and justify those investments. as you move out there's going to need to be some incentive to do that that's not a new concept frankly. you see that today with the tax incentives you have for electric vehicles, tax incentives for wind and solar one of the big differences in those applications is there's an existing industry with an existing incentive with respect to capturing cot, that's a brand-new industry. that's an industry we have to

build from scratch there has to be incentives to drive those investments and drive those investments to scale. we have talked about some mechanism of price on carbon i think the government needs a price on carbon if they're going to evaluate and compare different regulatory options or policies to try to lower co2, the government is going to need to understand what is the price they're paying for everton of carbon they reduce just to give you an example, if you take the cost of co2 reduction associated with the tax incentive for electric vehicles, we can reduce carbon at anywhere from a half to a quarter of the cost that the current tax incentive for electric vehicles is providing there's an opportunity there, but it's a brand-new industry. the other point i would make is our company as a whole, you know, we've been in the business of starting businesses, new ventures from scratch all around

the world. so it's something that our history lends itself to. large projects at scale dealing with processes that reduce and concentrate co2, something we're very familiar with and i think gives us an opportunity to significantly contribute to these objectives >> darren, very quickly. i know you have to go. you're a high yielder. you yield 5.9% you paid out $15 billion in dividends last year. that's a very important thing for you. this year does the problem take care of itself >> if you look at the first quarter which is indicative of more things to come, we've generated $9.3 billion of operating cash that more than paid for the capital in place

we work really hard to strike a strong balance and pay a strong dividend continue to invest in high return projects and we lean heavily on the balance sheet as we're coming into the recovery, the plan is to continue to address the high return investments continue to pay strong dividend and start deleveraging and rebuilding capacity in our balance sheet because we know with time we're going to see this commodity cycle come back around we'll be prepared for it when it comes back next time >> darren, thanks for your time today. it's good to see you. >> nice talking with you, becky. thank you. >> you, too. darren woods, the ceo of exxon mobil. joe? >> thanks, becky coming up, grading the president's first 100 days in office former citigroup chairman dick parsons joins us after the break. check out the futures down triple digits on the dow down about 150 we'll be right back.

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welcome back to "squawk box" this morning take a look at some of the earnings reports that come out clorox shares are lower as they cut their higher commodity and rate cost. it did have -- it's another company you have to think about inflation. newell brands, they said they

saw sales growth across all of their business units joe? >> thanks, andrew. president biden marks his 100th day in office, the size and scope of his ambitious initiative falling and the question is the plan to pay for them joining us is dick parsons, senior advisor at providence equity partners. dick's also the former chairman of citigroup former ceo of time warner. friend of mine, friend of all of us i used to think -- you were a republican, right, dick? >> yes. >> are you still a republican would you say? >> i call myself a rockefeller republican and i'm still there. >> does that mean you have rockefeller type money i think it does. >> no. no that means -- you know what it means, joe first of all, how are you? >> i'm great i was looking forward to seeing you and talking to you and in looking at the notes, i'll tell you what struck me

you gave the president a b plus and you liked a lot of this stuff. you seem to have a problem with how he's going to pay for it my question was, you know, everything starts with a t now, that's one thing having been at citigroup for a long time you know the t word, it starts adding up after a while. but you don't seem to have a problem with the expansion of government and i'm talking about expansion with a capital e you seem to have more of a problem with how he's going to pay for it, that it's not going to work. have i got that right? or you do have a problem with the big expansion and entitlements >> as you know, they're related. you can't expand without figuring out how you're going to pay for it i think that -- and this is a hallmark of rockefeller republican, having a social agenda, having government exist

to solve problems and i think directionally the president's moving in the right direction with the problems you identify, infrastructure, educating -- keeping our people healthy and safe and educating our population i think those are the directions we need to go in but, you know, you have to understand how are you going to pay for them and not place a super burden on the folks coming forward i mean, how are we going to pay for all of this stuff? if you add it up, it's close to $6 trillion that -- it's over 6 trillion actually that -- between the last recovery act, the new jobs program and the family program that's a lot of money and it used to be, you remember this, you were back there, that the republican party stood for fiscal responsibility. that's going out the window in the last couple of years everything that you say now starts with a t, trillion, and

it's as if we never going to have to pay for this stuff >> so if you did decide to pay for it, and i want to get -- talk to you about -- you were at dime bank. people might not remember that i don't know if i'd call you a wall streeter. citigroup, wall street, do you chaffe at all when you are kind of thrown under the bus? you hear wall street didn't do anything good, didn't build anything almost stood in the way. the big corporation bashing is just widespread across the entire democratic party at this point. we've got such great companies you look at europe you look at -- you look at the end result of an entitlement state and you have no facebooks, you have no amazons. what's the last great startup in europe, dick was it s.a.p.? i don't even know.

does that -- is that just -- is that just hot air or rhetoric? it doesn't bother you? you understand it? >> no, no, no, i don't know where you get that impression. first of all, you know, i don't know who it was, george bush, george h.w. bush, one of the advisers when you were talking about what's important you feel kind of stupid, right what's the headline in the wall street journal today u.s. economy bounces back near its peak the economy is humming the markets are humming. all of those are reaching near highs. there's a disconnect between the notion that somehow wall street and u.s. companies in general are not doing their job. they're doing their job and that's why i wonderabout and worry about how i'm going to pay for some of the stuff on the social side. you don't want to triple that. you don't want to, you know, inhibit that or impede what's

going on right now i mean, i think things are actually quite good in the country at the moment and i think you can let the air out of that tire by placing too great a burden on the corporate side and on wall street the other thing is, you know, the last income seemed to want to -- i don't know if he wanted to or it just was his nature to govern by division he wanted to divide or he did, in fact, divide the country, you know every approach he took was my side is better than your side, your side is evil and we had chaos, frankly what joe biden has done is he's eliminated the chaos he put it back to si vilt at

this -- civility in one area that i see with potential problems, dividing the country again, not along the racial line but along economic lines. the enemy is the rich or the problem that we have in this country will take too much it's kind of a rich and a poor thing. class division that's a real problem and it's totally unconstructive >> corporate taxes go up 28 too much? is 25? is that okay wealth tax, does that make sense. >> how about capital gains is that okay for people to make more than a million dollars? are all of those good ideas? >> here's my view of it.

i think if you have a rational discussion about what fair and appropriate tax policy is, we're going to do it, as opposed to just saying the rich will pay for everything is there some room to move all of the things you mentioned? i don't even know how you frankly do it. it's full of loopholes could you numbering the capital gains for the corporate rate sure you could do all of those things but hopefully it will be done in a fashion that was first of all bipartisan i think the president has announced -- it's a little bit of a chicken in every pot kind of speech and kind of approach

solve everybody's problem by creating trillions and trillions of dollars but you're going to create problems on the other side if you did it i think by trying to put the entire burden on only one sector of the population i think that could back fire actually, i think that's dead on arrival. that's not going to happen i hope the president is sort of able to put himself into a negotiating and bipartisan mode because of some of the things he said -- as i said, almost all of the things he's identified need attention. just not at the level that have been suggested that's my view. >> dick, in summary you would be okay -- you mentioned that governor, senator rockefeller, definitely senator i do remember. not everyone was around for that government can be a great

partner in the private sector. you think we're headed down the right track? maybe do a little less and make sure we pay for it does that sum up your thinking for what we do now >> as you just said at the outset, i agree with it. government is and should be a partner with the private sector. we looked at everything we've accomplished in the past, partnership, effective partnership and i think, as i said, i think that the president has identified areas and problems that need solutions but simply, you know, trying to put the burden on one sector of the economy and overspending the other thing you have pointed out, why a b plus?

if you remember this, joe -- >> the curve grading on a curve >> the big debate used to be are we going to attack entitlements? that's what's really eating into the budget not even mentioning it, right? >> dick, it's great seeing you >> all right >> playing the music going to be up at 8:00 didn't have enough time and i wish we had more we'll see you again soon >> nice to see you say hello to becky and andrew for me. >> hello, becky. hello, andrew. dick says hi they're right here thank you, sir >> you take care >> say hello it's great to see you. >> thanks. okay still ahead, don't miss our exclusive interview with omega family offices leon cooperman in a bit of ativit tiff with elizah warren

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futures to a lower open. stocks on track for another positive month we're ending a huge week with a megafinal hour

leon cooper man with the high profile fight with senator elizabeth warren chevron and twitter and their company's latest results and the outlook for business as the final hour of "squawk box" begins right now let's get right to the first of this hour's biggests. legendary investor and philanthropist, lee cooper man he's been in a high profile battle for a while with senator elizabeth warren over issues including a lot of things including tax policy here's what the senator told us on "squawk box" earlier this week >> everyone who built a successful business here in america did it using a work force that all of us paid to educate, did it getting their goods to market on roads and bridges that all of us helped to pay to build, did it protected

by police and firefighters helped us pay their salaries all i'm saying when you make it big, i mean really big, i mean the top 1/10 of 1%, pitch in a little more. >> lee, that was elizabeth warren earlier this week i know you've had your back and forth with her in the past what do you have to say just about what she's saying right now about taxes and about what she said about you >> well, i don't know what she said about me personally let me just -- i'll defer the entire blame on this whole interchange on cnbc, and i say that with a big smile on my face i was a guest speaker at one of your conferences years ago and my presentation had nothing to do with politics it was made at a time when she was running strongly as a candidate and the moderator of

my panel asked me what would the market do if elizabeth warren was elected president. i said it would go down 20%, probably too optimistic. she tweets, leon, i'm only looking for 2%, give others a shot at the american dream this is what really activated me in the end i decided to take a page out of michelle obama's book. the letter was so good that i got a call from a former president of harvard university, very distinguished, brilliant economist who happens to be on the democratic side. >> larry somers? >> excuse me >> larry somers, i'm guessing? >> yeah, good guess. he said if you submitted that as a paper in my class, i would give you an a plus she tweets inside traitor, she liabled me i owned stock in navian.

student loan companies all of her allegations have been not found to be accurate she proved to me she was a politician in the worst sense of the way. i do believe in the progressive income tax structure i do believe rich people should pay more the wealth tax makes sense to me for lots of reasons, okay? in all of the countries that introduced, i think 14 out of 17 has been eliminated, okay? there's so many better ways of going about what she's looking to accomplish. raise the tax rate to a higher level. eliminate loopholes. if you go back into your news recall, archives, seven years ago on your program i said they should eliminate the carried interest, it's a loophole. we should eliminate department of education we don't need a $100 billion cabinet to tell the states how to educate their children. segregation is over.

we should eliminate tax code item 1031 which enables real estate people to roll forward indefinitely capital gains, defer the taxes. there's a lot of things we could do we don't need a wealth tax it will be impossible to supervise and it hasn't worked by the way, i'm not too worried about it i think in the end it's probably unconstitutional she just proved to me to be the politician in the worst sense of the word i don't know her i don't vote in massachusetts. i would have hoped she would have come back to my letter in a rational, intelligent response, to engage at a high level, which we do have problems in the country. i'm a capitalist by nature but i'm a capitalist with a heart. i'm giving away all of my money. em a i'm giving it away as a nation we should coalesce what should the max tax rate be. that will define the revenue yield. you and i are both very fond of

warren buffet. i called him seven or eight years ago. we can say his response is confidential warren, you talk about wealthy people paying more in taxes. his response at that time, it may be different today, i don't know, you'll probably speak to him before i do, he said if you make $1 million a year, 35%. if you make $5 million a year, 40%. guess what between state and local government taxes, if you live in new york, new jersey, connecticut, california you're into the mid 50s and this is very counter productive >> that's the point, lee and we have frank luntz on who has polled people. i don't know if everyone realizes 50% is what average wealthy people pay, over 50 and we hear about the ultra rich and however they've accrued the ultra rich money, whether it was

pay ordinary income as they were making it, whether they inherited it so there was step up so they didn't pay it there the way they get to a 7% tax rate is because it's existing capital. and if you actually did talk to people about what they think is fair, frank luntz said they think 1/3 is fare. 1/3 of what you make should be paid even if you go to 50% i think 50% is fair but a lot of these proposals, you're going to go up well above 50. so i don't know whether that -- if you poll people with that, i'm not sure they should think -- maybe they do maybe if you make $500 million or have that much, maybe you should have an 80% marginal tax rate >> i don't think so. joe, how do you -- >> which you and i say we're doing it. >> what's that >> you and i are on the same side of things how do you get to be very wealthy? is the world wetter off or worse off because of jeff bezos, jeff

langone. >> what about their kids that inherit everything >> we should make sure that everybody -- we should make sure that everybody pays taxes, okay? and i quote thomas sarwell, a man of color, a conservative economist who said since this is an era where people are concerned with social justice, what is your fair share of what someone else has worked for? i'm willing to work six months of the year for the government and six months for myself. that seems reasonable to me. beyond that it becomes confiscatory you wind up with actions counter productive grading a population in new york, new jersey, california people moving to other regions, low tax regions. people are smart they're not stupid. >> lee, i have a question about philanthropy you've been very generous over the years. your circumstance may be very different than some of the people i'm thinking of

you're in the hedge fund business and therefore oftentimes you sell stock and, therefore, when you're giving, i think, some of the money that you've given away, i think you've given in cash, meaning you've paid the taxes on stock that's been sold prior, but a lot of charity, especially among the billionaire set, is given in the context of shares which effectively has never been taxed. i'm not picking on warren buffet or bill gates or anybody else who's done wondrous things for this country oftentimes that money is not taxed, meaning they've built a remarkable fortune and they've been able to give that money away but the government and other taxpayers who don't obviously have this benefit to be able to choose where to send their money don't have that. how do you think about that issue? >> well, the tax code is designed to create income. to the extent they'll give you pre-tax dollars that are

appreciated, you can take the course we're not talking 90, 100% tax rates, we're talking 37.6% tax rate you're giving away serious money. everybody that has their own view i determined many, many years ago there's only four things you can do with money. the first thing you can do with money is pleasure yourself by planes, art, homes, stuff like that my wife and i, we happen to have a view that material possessions brings with it aggravation so we're less is more i just bought a new car the other day and the car i traded in was a 2002 lexus. i kept the car for 20 years. i bought a hyundai so i'm not a collector of things second thing you do, give it to your kids. if you have a lot of money giving all the money to the kids is a mistake you deprive them of self-achievement the third thing is give it to the government only a fool gives the government

more the fourth thing you do with money, which is what i'm principally involved with is recycle it back into society and try to make the world a better place. that's kind of my commitment i'm far from the most generous guy. i whereby i had more money to give away. i'm giving away 100% of my money. i told that to warren buffet i told him the giving pledge was a great idea it wasn't original in 1800 andrew carnegie did it president kennedy in 1961 he said ask not what you r country can do for you, what you can do for your country i'm jewish i recently gave $50 million to create cooperman college scholars i paid tuition for 1,000 children of color that deserve a break. i have other things i'm doing.

my family and i get quite a bit of pleasure out of that. so, anyway, to answer your question, if you're talking about 90% tax rates, that's one thing. people are giving away real money. they give away money that's -- that they don't use. another expression is, you know, shrouds don't have pockets you can't take it with you i want to make a difference. >> lee, while you're here we want to talk to you about the market, too. >> that's what we should spend more time talking about. >> you say that you're an almost fully invested bear. what does that mean and why? >> well, that's a very good question and number one, the market has done better than i would have thought i'm up well. well in excess of the s&p this year did not do well last year. i'm a fully invested bear. the fully invested part comes from the cyclical analysis in the economy. bear markets don't materialize

out of immaculate conception they come about because of certain reasons. they come about because the market smells an oncoming recession. we're coming out of a recession. hostile fed, serious over valuation. speculative valuation. that has been coming about i have to say, the market has been very self-correcting in the sense that the faang stocks are not expensive but the aspiring faang stocks are very expensive. they've been correct in a serious way. the whole slowdown of the spac area is self-correcting. i would say on the near fully invested is i don't see the condition that would lead to a significant market decline present, however -- however -- this is a big however. i think we should recognize we are pulling demand forward and if the longer term outlook is not particularly favorable in my view what do i mean by pulling demand forward? if you spoke to 100 economists today and asked them what their

view is of the potential real growth of the u.s. economy, response would be centered around 2% real they would get here by saying productivity grows at 1.5% the next real growth, 2% real potential for the economy. could be centered around 2 we're growing this year four to five times potential yet the fed is persisting in keeping interest rates at near zero. doesn't make any great sense to me it's just pushing people out of the risk second observation, you know, we've already injected before these recent tax packages, it's $1 trillion in transit than income that was lost $2 trillion here the president the night before last

i think that -- i understand what's going on. the price to pay what's going on is very simple before the virus hit we had 5.5 million unemployed people in the country. the virus hit, that ballooned to 23 million we're now down to around 9.7 fiscal monetary policy they conducted to get that unemployment we're back down to the 5.5 million and they're now focused on the long-term consequences of what they're doing. maybe they're right. a source of the revolution people are hurting i don't think a blanket stimulus that they're providing is the most effective way of going about solving the problem. and i think that mr. powell will be surprised by inflation and not be as quiescent and transitory as he thinks. the fed will say something before the end of 2022 and i'm also concerned, frankly,

about the leftward movement of the party in charge. as i said, i'm he a capitalist at heart i don't have much use for money. i respect money. i don't have much use for money. what made america great is capitalism the fact that we're turning our back on capitalism is wrong. the fact that we attack companies like microsoft, google, amazon, facebook, god knows what we would be going through if we did not have those companies in the last few years. >> you led to where i was going to take you towards the end of the interview back to elizabeth warren the comment about stock buybacks used to boost the share price so the ceos can enrich themselves the companies exist to pay lobbyists, exploit loopholes, not pay taxes. these are companies that have

hired how many people? they've enriched shareholders, which is not a bad thing we don't see it happening in the rest of the world, this vibrant technology sector and all of the wonderful things that come from it is it harmful to have politicians like elizabeth warren demagoguing these issues with things that are not true but it has an effect and people believe it when they hear it and they think that they're virtuous by taking her side of things on things that are being done does it have a long-term negative effect? >> absolutely, if it goes that way. we have a very divided country i voted for biden. i voted for biden because i thought we needed a change donald trump had decent economic ideas but his values were not my values so i voted for biden but i'm a capitalist

i think -- i go along with will rodgers, satirist. if politicians delivered 10% on what they promised, there would be no need for heaven. both parties are lacking, you know i'm very surprised how few republicans spoke out against donald trump when he -- with some of his pickadillos. i've been a registered independent for 25 years i switched to a democrat because i'm a great fan of michael bloomberg. when he ran for the presidency i wanted to be able to vote for him. i'm going back elizabeth warren is sound bite politics wealth tax sounds good it dointd work it doesn't make any sense. raise the income tax get rid of the loopholes i suspect we have not gotten rid of carried interest even though it's been talked about for

decades because schumer doesn't want to support that because his constituency is new york and all of these well to do guys who benefit from carried interest. we've got to do the right thing. that's it. i'm prepared to pay more in taxes. elizabeth warren showed her true colors when she did not respond to my letter it's posted on the cnbc website. becky had a good guess larry somers gave me an a plus he's a democrat. he's a very brilliant guy. very good economist. a man worth listening to i think what he said recently is the fiscal policy being followed by the country is the most irresponsible he's ever seen something is going to give in the end. i suspect the dollar will give and interest rates will rise and let's face it, you know, the market is facing the fact that taxes are going up, interest rates are going up, inflation is going up we have a reasonably rich

market sickicallically i'm engaged. i don't have to make that guess now. this is not going to end well, but nobody, myself included, knows when it's going to end watch the various things that normally would indicate an end >> hey, lee, we have to go i love having you on before we let you go very quickly, i want to ask a quick question about some stocks you own, big holdings you have in amazon, microsoft, and alphabet. all three of those but i'm wondering whether you are adding or subtracting any of your positions in those three stocks based on what you heard this week >> no, i'm sitting pat i'm ancient. i turned 78 last sunday. i went back and looked at the nifty 50 of 1972 this was a world run by jpmorgan, u.s. trust, they only wanted certain world class growth companies and they didn't

care what they paid. eastman kodak, bankrupt, 48 times earnings ibm, 37 times earnings, k-mart, bankrupt, 34 times earning polaroid, bankrupt, 90 times earnings sears and row bucks, bankrupt. it was 6.5% for the 10-year yet you saw those valuation levels when i look at alphabet, 28 times earnings, microsoft 33 times earnings they're generating substantial cash i don't look at them being over valued what's over valued is fixed income i don't understand why somebody would want to buy a bond if you give away 40, 50% in a coupon to the government and then you have inflation, you're getting your capital confiscated. i'd rather take my chances in the common stock that's what's going on in the market i think conditions will change i find a lot of things worth doing in the market which is why

i'm heavily invested but i don't see conditions that will lead to a big decline. it will materialize. when the market has a reason to go down, it's to go down so fast your head is going to spin there are no stabilizers left. brokerage firms had an economic incentive to stabilize 50 years ago the specialists, new york stock exchange was 80% of their volume. specialist system doesn't have any incentive and reason to stabilize. the lobby system, i've been totally ignored. 1938 they connected the uptick rule it worked effectively for 70 years. in 2007 they eliminated it this gave rise to the quantitative trading system. they know everything about price. they buy strength, sell weakness destabilizing influence in my opinion we should at least put

in an uptick rule and try and deal with the successors in the market up and down, by the way. but they don't do it we'll react when we have a crisis of some kind. look at the fourth quarter of 2018 no economic reason for the market to decline. the worst decline since the great depression turned out to be totally bogus as a result of the structure of the market >> some words of caution there, lee, but also a lot of words of wisdom really great to see you. happy belated birthday and we hope we get to talk to you soon. >> my pleasure stay safe. stayhealthy. thank you for having me. >> you, too. when we come back, we'll get more of this morning's big movers from the earnings front and then chevron cfo will join us live. stay tuned you're watching "squawk box" and this is cnbc

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zbroo welcome back, everybody. chevron posting earnings in line with the street's expectations that stock is trading a little lower this morning down 2.7%. the company has been dealing with weakness and downstream volumes. joining us right now is pierre rebber, chevron's ceo. thank you for being with us today. let's talk a little bit about what that winter storm impact

meant and where the company stands right now >> thanks, becky highest earnings and cash flows. exciting announcements it did impact the results. $300 million after tax we have all the production operations back up and running all of the major refining and petrochemical units. what it did is margins are higher as we look forward, our cash generation is better going forward with coal prices better than $60 >> are you counting on oil prices staying at the higher levels and not moving? we were all pretty shocked by what happened just over a year ago with oil prices going negative we've seen the oil prices go up. what's your expectations about what we should expect and the

remainder when it comes to oil prices >> yeah, we're not any better predicting oil prices than anyone else. we're not predicting we said a $50 brent we could grow free cash flow over the next five years. that gives you confidence we have the capability to grow the dividends not just the 4% or the 8% we saw last year. in terms of the macro, we've seen gasoline and diesel really back to pre-covid levels jet fuel is poised for a comeback domestically here in the u.s the stimulus package others don't it's not -- we're not yet on a path of a sustained global economic recovery. >> part of what we saw is you

and other big energy companies really cut back on capital expenditures as a way to react quickly when oil prices plummeted. what do you have in terms of spending right now what can we anticipate over the next several years >> we're going to deliver our budget this year, which is $14 billion. no change in that. our guidance for the next five years isin a very tight range. 14 to $16 billion. we're going to look at three conditions which we've been talking about since the start of the pandemic the first is a sustained global economic recovery. not yet across the whole globe the second is clarity and what opec wants and seeing more of those barrels. it's negative oil prices that's a very narrow range between 14 and $15 billion

last thing i'll say, we're not going to look at the commodity markets. we'll look at the equity markets and that has not yet come from the equity markets >> what do you mean? equity markets meaning investors will reward you for spending more on cap ex >> yeah, becky we're one of the few sectors that's trading lower post covid than pre-covid that's true in our conventional business that's true in m&a you're seeing that when we walk away when we did the millable energy transaction and that's true with the energy transition. we have to earn the right to invest more capital. we're going to be very disciplined with capital our message is very simple we have to do that with being very disciplined with capital. >> you mentioned noble energy in the acquisition. you paid $12.1 million for cash and stock. just looking, worldwide net oil production was down 4% for you

all this year. that's because of a decline in international. in the u.s. output was up by 210% what can you tell us about the acquisition and how things are working, where things are coming together and where there's overlap? >> it's going great. we were the first to announce a transaction in july. only a few months after that famous day when oil prices were negative the first to close in october. we have two quarters having integrated we doubled our synergy estimate from 300 million to 600 million. we've achieved 80% of that we expect to achieve the rest by the end of the year. our production numbers and reserve numbers, this transaction that was very good when we announced it has only gotten better. >> pierre, your stock's down by 2.5% this morning. why do you think that is what do you think the street heard that it didn't like in the numbers? >> look, we can't control the stock price. we're managing this business for long-term value. dividend increase of 4% shows

the confidence we have going forward. average during a difficult time. free cash flow growth over the next five years at low $50 brent oil prices the ability to generate excess cash recovering chemicals and refining margins we're confident about the future >> pierre webber is the ceo of chevron. thanks for your time today. >> thank you, becky. >> joe >> thanks, beck. coming up, key inflation data out this morning. we'll bring you the numbers and the market reaction. "squawk box" comes right back.

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welcome back to "squawk box. breaking economic data we just got personal income and spending income up a massive 21% reflecting the checks that were mailed spending not as high, just 4%. goods sector a big 8%. services just up 1.74% on the inflation data, 2.3% year over year on the headline, compared to 1.5% prior month that's among the highest we've seen in a while. takeout food managing up 1.8% compared to the prior 1.4. energy leading the -- pacing the data there up 13% on the month.

i can't find an income growth in 70 years in history and now we have months ahead of us to spend. the savings rate, joe, up to 27%. >> wow getting into it, there is some pent-up stuff ready to go. the consumer is ready once we reopen i think the consumer is ready, steve. >> money in the pocket, joe. there are goods to buy >> not palladium rhodium. seriously, check it out. coming up, the cfo of twitter joins us live. first, the battle between roku and google's youtube now roku has removed the youtube app from the channel store rok usaid youtube demanded they get preferential treatment youtube called the accusations baseless negotiating tactics apple remains available.

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shares of twitter are providing lower revenue guidance joining us first on cnbc's twitter cfo ned segal. ned, great to see you this morning. lots of questions for you. you know, one of those quarters

where you beat on the numbers and then the question were the expectations just too high about what the future is going to hold >> well, thanks for having me, andrew remember, we set bold goals a couple of months ago to double our revenue to 7.5 billion in 2023 to continue to compound our audience to 315 million so 20% annualized over the last year and the next few years in 2023 and a couple months in we feel really good about the progress we've made ads revenue 27%, we grew our audience 20% >> how should investors think about monetizable daily investors which did not grow at the levels i think people were hoping for. >> well, we grew 30 million year over year, 7 million sequentially and 20% annualized

in q1 and we shared as we start to lap both covid-19 people were focused on the lead up to and aftermath of the presidential election for the past year as we said back in february we expect qs 2, 3, 4 to cee lo double digit growth with a low point likely in q2 no change as we've said before as economies open, our product improvements are designed to help people find what they're looking for whether it's on sports they're watching in a stadium as opposed to on a sofa, politics, entertainment, whatever the topic might be. >> dare i ask how much this was impacted by trump? >> remember 7 billion a year in q4 we mentioned back in february that we added more dau in the month of january than we did in

the average of the last four januarys there's so much more that happens on twitter than any one topic. remember, 80% of the people who use twitter are outside of the united states. i just point to all of the incredible things that we're going to talk about on twitter whether it's crypto, entertainment, or stocks or other things and all of those powerful conversations, i think it's easy for us to take a u.s. centric view of these things we have to remember all of the other conversations happening on the surface. >> back on the platform. >> >> president biden's tax plan, infrastructure plan around whatever the topics of the day might be as long as twitter's been

around, people have been talking about politics on the service. the people who are having the conversation might change. the topics evolve. people come to twitter to share their thoughts, to hear and learn from others. >> there are people bullish on twitter in large part because of a number of acquisitions and new products that you have been introducing and plan to introduce. we're talking with mark mahaney in the 6:00 hour he said i still think that there needs to be effectively a bigger funnel people need to -- twitter needs to be effectively more accessible to more people that have a greater use case for more people how do you think about that relative to new products which just, frankly, may be more engaging for the current user base >> so every day we've got a really healthy top of funnel meaning the number of people who come to twitter who haven't been on it ever or who have been on it but haven't been on it where

it's not part of their daily ritual it's been remarkably consistent. we view it helping more people make twitter part of their daily ritual where they've found what's happening in the world and what people are talking about to wake up in the morning and come to twitter to glet their news and converse with others around the topics if we can do a better job of that, we can continue to make progress towards that 315 mental health -- 315 million goal >> there's been a lot of discussion about apple's new i0s and talking about making it more challenging to track and giving users the option to opt in effectively. what do you think the impact long term is going to be i know last night it appeared you said it was a little too early. but you also suggested that the apple -- getting inside apple

has actually helped you in the past quarter >> we do expect modest impact from the changes apple has made to the operating system. it's going to be a while for the ecosystem to adjust. remember, advertisers objectives haven't changed. the economics haven't changed. their need to acquire customers haven't changed at all they're going to have to figure out how to realize their objectives when they may have less access through us and others to the information that's most helpful to them in the way that the ecosystem has worked up until now. that's where our brand advertising may really come into play you take an example like pepsi where they take over twitter on the super bowl they grew their impressions by 40% year over year because we improved relevance and because we grew our audience relative to last year. if we can help pepsi get their message out, whether it's around existing products or around a new version of mountain dew, those are great examples where

we can help them deliver where the device i.d., how people are using other apps on a phone really matter less this may very well level the playing field where ads platforms may be working with similar signal as opposed to in the past where people may have had different levels of signal available to them, to show relevant ads to people. >> the other day, there was another one of those situations that, you know, that people go crazy, on all of the cable networks that involved senator scott who gave the speech following senator, or president biden, and once again, the allegations are that you selectively will look at content based on whether it's from the left or from the right, and the woke twitter mob from the left seems to get a pass a lot of times where the same type or even less incendiary comments from the right just immediately are blocked. who's doing it is there an inherent bias just

with where you're located and who twitter employs that causes that or is it something that's intentional? >> joe, the only way we can serve the public conversation is it make sure that people hear all sides of the conversation, whether it's around sports, rooting for different teams or on different sides of the political aisle, we want people to show up in a way where they're respectful of others and not inciting violence off platform and where they can learn from each other and have a healthy back and forth and again, whether the topic is investing, sports, or politics, where you can hear from all sides, that's how we help twitter get to 315 million by the end of 2023, that's how we help the rest of the world use the service all the time as well. >> hey, ned, we've talked about bitcoin a little bit together, and i know, unlike square, you're not going to be putting bitcoin on your balance sheet any time soon, but i'm curious about what the view is inside twitter about users, maybe

prominent users like elon musk and others pushing different cryptocurrencies and like, creating memes around some of these things, and also therefore the risk to users who take that advice, if you will, and run with it? >> well, just like any other conversation on our service, we want to make sure that people can trust what they see and feel safe being a part of the conversation, and so this is a pretty dynamic new area that we're watching closely to make sure that we find the right balance between facilitating the conversation, and having people be able to trust what they see it's interesting, when you think about crypto and investments, the app makers around that space, they have grown their spend 10 x year over year with twitter, because there is such a rich conversation around these topics on our service and because we have much better ad formats and have been able to deliver better than the past, i think the conversation will be on twitter for a long time and i think those advertisers will be able to find their customers on

our service for a long time as well. >> before we go, i want to talk to you about twitter space, and i'll mention in a second that we will do something together on twitter spaces but i'm curious what you think is happening in the social audio world clubhouse of course appeared to be the pioneer of this space, there was a lot of novelty, a lot of people downloading that app, it has tailed off, and i should say almost fallen like a rock, if you actually look at some of the numbers for clubhouse. i know you're just beginning in this space, but what do you see happening? >> well, audio chat rooms where people can go and listen to others, or be a part of a conversation, are such a natural extension of how people use twitter. you've got your follower graph your interest graphs so you already, we already know what you're interested in, and you've got the people who follow you as well, so they can find you, so if you need and look at consumer product, and jennifer

who leads our product team is talking in a few minutes on space, people will be able to find that conversation we started with text and moved to images to video to audio tweets, this is a real natural extension of it, it will be fascinating to see how this becomes a part of other services over time. and i suspect it will be a part of many services, but the use case will probably be very different for each of them maybe you'll do an interview on linkedin on twitter, you'll come to talk about the nfl draft, you'll come to talk about stocks, you'll come to talk about the new version of a show on netflix, as you are able to do just last week, or the after-party for the grammys which we had a few weeks ago, as well i can't wait to see all of the different ways that people use this over time on twitter. >> how much do you think social audio will really be worth there are reports that you tried to buy clubhouse for $4 billion. >> i'm sorry, say it again >> there was a report that you were looking at clubhouse, to try to buy clubhouse at one point, for $4 billion valuation,

and so i was sort of curious how you think about the valuation of the social audio space, and if you could speak to the issue of thinking about buying that company rather than building it yourself >> well, twitter's bought over 20 companies for hundreds of millions of dollars over the last few years, and m&a is a core competency for us the people who join twitter through m&a have stated to the company the retention rate is higher than people who have come to us regular way and great at attracting people to the company who want to stay with us when we acquire their team, their technology, or a product that they might have. any time there's an important opportunity for us to build something, or we're going to think about whether it makes sense to build it ourselves, or if we can move faster by doing it through m&a, and so you'll hear our name from time to time around companies that are doing fascinating things that are close to what we do, and we're just going to work hard to strike the right balance between

figuring out whether we're going to do it ourselves or whether we can move fast with somebody else's help. >> okay, ned, appreciate it, we're going to continue this conversation, and dig in to even more of all of this, and we're going to do that at 9:00 a.m. and i will speak with ned and several other members of the twitter executive team, we will do it on "spaces," so come join us and we're going to play around it with it and see where we go. joe? >> thanks. let's get to cnbc headquarters, jim cramer joins us now, there is really only one thing to talk about, jim, and that's de'von tay smith? >> i think we wanted to keep him away from going to the cowboys i think it was somewhat defensive. the guy put on 15 pounds he did win the heisman trophy. we haven't picked a heisman trophy winner in decades i don't know, look, cincinnati continues to get better. keep your quarterback healthy. >> lsu buddy. >> i see that. that guy is terrific, joe. that was a great pick. you guys are going to be good.

look, the other clubs in your division are going down, you guys are going better, burrow, is he okay how's his rehab? >> i don't know. i worry about that getting blown out again. i really do. maybe we should have gotten like three or four guys to surround him. >> it's early. it's early many more rounds >> we'll tune in to "squawk" for important business stuff like amazon and everything else when we see you in a couple of minutes. we're done, i guess. >> we are. >> how much time do i have none get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions,

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good friday morning. welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber is on assignment. for the final day of april here, and futures are red, as we come off the record highs for s&p, nasdaq, earnings are the story, amazon, twitter, exxon, chevron, and more signs of price pressure with core pc, the highest month on month since 2009. our road map begins with amazon, twitter and now apple's eu anti-trust woes plus closing the book on what is obviously a very strong month for stocks and