company gets upgraded to market perform, and a more attractive entry point for a trade given the recent pullback over the last few weeks joe, i know you're probably a contributory some of that robustness over there at draftkings >> that's right. thank you, dom we're almost out of time becky, great job thank you, andrew. thank you and you know what else is happening in may? may 5th. cinco de mayo. i think it's wednesday >> cinco de mayo >> which is nice >> join us, "squawk on the street" is next. see you tomorrow good monday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. welcome to may futures are green as we come off the best month for stocks since november another big week, with the quarter of the s&p reporting and plenty of headlines from the berkshire meeting and the road map begins with the buffett blast, the oracle calling spacs

a killer and robinhood a casino. >> plus, verizon is selling yahoo and aol to the private equity firm of apollo. we will give you the details. and stocks, well they look to pick up where april left off. futures pointing to strong gains on this first trading day, carl, of may the year is moving along. >> yes, it is. it sure is good to have you back, david we will talk some seasonality in a minute but guys, so many headlines from the berkshire meeting, jim, i know you talked about a couple of them but spacs, bitcoin, apple, buybacks, climate, where do we begin? >> i think we have to talk about the individual investor. and i'm going to take it head-on here look, obviously, i respect those two men, as everyone else does, warren buffett, charlie munger, you have to, but i found, i agree with vlad tenev and robinhood when i say it was insulting. maybe it was meant to insult maybe it was too much.

but when i think those gentlemen blast a company that has brought millions of people in, some of these people are investors, and not all of them are casino or call buyers. david, i think that there's a sense of contempt for change and these people are part of a change and a democratization that i am not going to criticize. >> when you talk about that, when you say that there's some contempt for that, is there anything in particular that comes out of the various comments that were made by mr. buffett and mr. munger >> there was a very good comment about short-term apple call buying i do think there is too much call buying. i also think that if you rely on what people say, where they get their ideas, wall street bets, that means that you bought gamestop, and you bought amc, and there really isn't much more to it, so david, my take is, is that we're not getting a correct sample, and that both men have

contempt for millions of people who are smarter than having money in a checking account. and they're trying, and you don't want to discourage them. but if you listen to these two, i think you find that they talk about the generation as fools and i disagree with that. >> carl? go ahead. >> i was going to say, i mean robinhood's statement, if you haven't heard it so far this morning, if the last year has taught us anything, people are tired of the warren buffetts and charlie mungers of the world, acting like they're the only oracles of investing if you missed what the two said over the weekend, take a listen to this. >> i do want to say, i'm concerned about how they handle the source of income when they decide, they don't charge the customer anything, i mean it will be interesting to watch how they describe it

but they have attracted, maybe set out to attract, but they have attracted i think i read where 12 or 13% of their casino participants were dealing in puts and calls i looked up on apple, on the number of seven i had day, seven-day calls and 14-day calls outstanding and i'm sure a lot that is coming through robinhood and they're gambling on the price of apple over the next seven days there's nothing illegal about it there's nothing immoral. but i don't think there's a society around people doing it. >> interesting, guys some of our viewers are writing in this morning, david, sort of defending buffett, saying buffett doesn't know my order

flow, he doesn't sell my order flow, and he doesn't shower me with gimmicks to get me to engage >> yup that is all true and jim, listen, we talked a lot about the gameification of these apps and robinhood and particular, and you made a perfectly valid point about their business model which potentially changed to some extent since the gamestop fiasco which they were more or less out of business if they didn't raise $3 billion there is no doubt that there is a level of speculation there that they're participants, that their participants engage in you can't fully disagree but what is it that you take issue with then? >> i think that that is a sample, a smaller group, i think it's more anecdotal than empirical. i think that we need to encourage younger people to get in and we need to help them i actually think that what we do here as a network is antithetical to exactly what buffett and munger said so i'm not going into what their view is i mean we try very hard to

educate. >> right. >> all of us and it's got some power. we should not just sit here, if we're just going to tell people they should be in index funds, then i think we've missed great opportunities for people i think of all of the stories you broke, people are watching what you have to say, do i think that they're foolish taking action? i think the opposite >> no. >> i think that what we do, carl as a network, is admirable it's to help a lot of people from robinhood be better i don't think that they necessarily have to self -- they're not the ones who shower themselves with gasoline and light a fire there are a lot of people who watched us, and i want to bring us into the debate, i spent my life trying to educate these people and you can say listen, that's a life unlearned, and a life that's -- i look at it, i probably talked to thousands of investors, far more than these two gentlemen, other than the people who are long buffett, who are long warren buffett, long

berkshire, and carl, i find it denigrating, and i find it patronizing, and i know you're not supposed criticize these two gentlemen, i know they're supposed to be above criticism but they directly attacked a wave of investing, carl, that i'm very excited about, and those are the people who get blown out. >> do you consider, jim, seven-day calls investing. >> that's not investing. that's stupid. do i consider that's what everybody is doing absolutely not do i consider when people call in and ask me about it, and you can say that's anecdotal, too, well, i don't know, after 16 years and thousands of shows, i'm more empirical than those gentlemen. david, i just think that we have millions of people who are finding their way, and some are going to make big mistakes, always have. >> but those who would use the app on a daily basis and treat it in the same way that they would a betting app -- >> that's foolish. but they'll get blown out. but there will be some of the millions, millions, who will

buy, and how about this. one of the most popular things to do is buy slivers of bitcoin. are they fools or did they beat everyone >> they haven't been, if they bought it at any levels. >> i wish i had been them, when i was my age and i bought bitcoin, or doge coin. >> i think it is very interesting to look at this cohort, and munger, he can be vicious, you're not supposed to be saying that either but what buffett says he's very folksy in the way he patronizes, he makes you laugh, he says funny things, and says they're not doing anything illegal, no one said that, that's a total strawman, and how about the millions of people who say i will get educated and learn how to invest rather than money in cds or checking account

why is that not something, they got the app, the app isn't a gun, and it's not russian roulette >> jim and carl, i found the comments frankly from mr. buffett on let's call it broadly speaking esg investing as if not more interesting and certainly made you think about some of the things that are being asked of corporations right now >> $2 trillion saying it's good. >> i think if we had them, i don't know if we can, you know, where he talked about climate, and where you have to be careful in terms of how you hold a company accountable, and for what you hold them accountable, i thought it was very interesting. now, i think there's also, as you just said, there's a lot of money that's going the other way on that. we all know we're in a different world when it comes to what is expected of the typical corporation right now. and there are ceos who have engaged on issues that you would never have anticipated a corporation would ever get involved in, in the past

>> true. >> and where that goes, it's one of the reasons why we cover it so closely do we have buffett's comments, guys or not anybody? >> i don't think we have - >> what did you say? >> he said the word assinine. >> don't you find that patronizing? >> yes, i do >> think about the exxon board >> it's 52 seconds >> i don't know. >> why not >> the exxon board has hanged. >> we talked about chevron, obviously. >> and taking it more seriously than buffett does. >> mike vociferous, he thinks the other view is assinine s sorry to be so vociferous, and these people trying to change their business models and think about the amount of methane that they tried to cut down because of pressure, and not because of a previous president who did not think methane is an issue, they took it on themselves and it

cost them some earnings. >> and i don't want to make more comments on stocks than running the business which you can kind of understand, right? >> it's one way. i got at goldman sachs, all i care about is making money, get rich and give it away if i want to i discuss. i discuss the way i was. >> really? >> yes >> i was just a dollar sign represented by a plan. >> has that ended? >> i think i care more about these issues than i ever thought. and i think the robinhood people do, too. carl, i think we have decided, when we listen to buffett and we can all agree with him, this is the easiest thing in the world to agree, that all of the people who opened the robinhood accounts and they tried so hard to learn how to invest and went into index funds, a lot of them, that they're not bumps or fools. they're people who are trying and i think tries is good. i think it's good. and the little guys, frankly, i think they're good

do i think it's a ripoff to pay for order flow not crazy about it not crazy about paying for order flow. >> yes, i was going to say, jim, it doesn't sound like you think it's perfect but you don't want perfect to be the enemy of the good. >> right i just want these people who are watching us to say i'm going to listen and maybe verizon does well, and i would like to learn more i'm not going to tell people who are trying to learn that they shouldn't try. it's not worth it. these two gentlemen started buying stocks, and by the way, not everybody went to wharton back then. now, people go to m.i.t. and they go to cal tech, and they go to berkeley, and they learn, okay they go to usc and they learn. i'm not happy with this, carl. >> jim, a lot more in there of course, on spacs and bitcoin, which we'll get to later on but they definitely set up a rich debate for the weeks and months to come. when we come back, a ton of calls to get to this morning, including some on caterpillar,

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but is it secure? sure it's secure. 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 apollo, with what it is called verizon media for $5 billion,

and we are talking aol and yahoo and those are the best known names and you can see what verizon shares are doing after lackluster earnings a couple of weeks back this won't move the needle verizon will retain a 10% stake and yahoo at the close of the transaction and apollo is the buyer here, and trying to get a sense from the participants as to what the multiple is, right, that's always interesting, look, multiple, are they paying, i am hearing mid single digits, but there are some assumed asset sales in there as well, so it's a highly structured transaction and that's about all i got in terms of really getting a sense. so let's call it mid single digits not a big surprise that this was for sale in fact, i had heard it was for sale, and asked ceo hans vesburg about that very fact on march 11th take a listen. >> your media assets, yahoo, of course being one of them, but i do hear if you were able to find a buyer for them, you would sell them is that true

>> first of all, these guys at verizon have done a fantastic job. i mean whee changed the whole business model and the business plan as we started in 2018 they have changed all of the products, taken out costs and starting to grow, and the fourth quarter showed that, so i think i'm very pleased with how the guys have been executing so we are supporting them, and they're part of the family and they're a very important part of it. >> that wasn't a no though. >> no. and i knew they were for sale, but the only question was, would they find an actual buyer and they did 4.25 billion in cash for verizon, preferred interest of 750 million, and the 10% stake that they will retain in the company. jim, i went back to my old files, to just to try and remember, as a point of education, for people today, because remember, of course, at one point yahoo is worth over $100 billion, aol bought time-warner, and by the way, there was a writedown already taken by verizon, they paid about what is called 8.5 billion total for the two assets and

took a 4 billion writedown, a couple of years ago already, three years ago, on the assets themselves, but i went back and found a research report from january of 1999. you can't really make it out here i mean it even looks old from the type on it. just to give you a feel for what was going on back then on yahoo this was an analyst that said yahoo 150 times revenue estimate, and 107 times, the 2000 revenue estimate, and it was a a third 100 points ago and 200 points ago and we won't be stupid and change the rating and that shows you an example of where things were then, and 20-plus years later, where they are now in terms of value. >> extraordinary loss of value i think the lesson there was that mark cuban told you to sell it >> when he did the broadcast >> yes

>> and 5 billion and that's what made him a billionaire. yahoo stock back in the late '90s and then collared it pretty quickly. >> and then invested very, very well. >> yes. >> one of the things that you and i both know, there are some very talented people there what happened that the talented people could not make a go of it or at least of a go of it for verizon. or were they making a lot of money? >> i don't know that they were making a lot of money, i would like to know the actual dollar amount, i don't have a great answer for you on it >> but the buyer is a smart buyer. they're thinking about ad tech they're thinking about, you know, sports betting they're thinking about continued innovation as well in financial technology so we'll see if they're able to grab a hold of any of that, jim. to actually create a much higher level of ebitda eventually that makes it a good deal, and of course, don't forget, it will come back to the public markets at some point. that's the way you draw it up,

right? >> exactly >> carl? >> speaking of sports betting, guys, we will look at draft kings later in the week along with a host of other names which we'll talk about, as well as the play book for may and whether it is any different this year as the old saying goes, selling in may hasn't always paid off in the last ten years back in a moment this is how you become the best! [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today.

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>> yes. >> certainly the multiple is something you have used as a comparison i can remember a couple of years ago when we talked about it versus apple for example. >> yes, exactly. that's very pertinent. because what we've seen here is a contraction in the multiple. this is a company that wells fargo this morning throws in the towel. they go from buy to sell why? because they think the top line was bad and they think the bottom lineeroded by inflation this is going to rendle, on"ma money" on friday, and he i think she made the case, what has happened to the stock, it gets crushed and does it keep getting crushed? it's questionable a good dividend a good balance sheet made a lot of money during the pandemic because of what they did. >> but comparisons are not going to be easy. >> that is the problem wall street lives on comparisons and you'll be hit every quarter for maybe the next three quarters with the disappointment for someone, and shake out a lot of the true believers.

all that said, the stock is down the new ceo is doing a terrific job adjusting some of the new divisions like the supplement division taking a hit which needs to be taken. because the acquisitions were not great. and basically, rationalizing the business but if plastics were to come down, which it could happen, a lot of this is because of super storm uri, i think you'll find the margins will expand. i don't want to throw the towel in. >> where is the multiple right now? >> oh, my god. you know, you're talking, it's a moving target but it's at 25 >> still at 25. >> 25. >> okay. >> that's not cheap. >> no, it's not cheap. but this is a great brand name and it tends to trade on its dividend buyback. and they have a lot of cash. it's not a great story it's not time to put it as a sell it's time to put it as a sell, it would have been around there. >> i know. if only, right >> all right, an opening bell coming up for you on this monday

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you're talking about three of our companies and you covered 95% of it, and it's assinine, frankly, in my view. now we do other assinine things because we're required to do them, and we'll do whatever is required, but to have the people at, you know, business wire, you know, dairy queen, all those places, making a report, some common report that comes in, we don't do that stuff at berkshire hathaway we've got, during the pandemic, we probably have 12 people who come into headquarters and we've got, 360,000 people working in the company that, all kinds of activities and it's built, i don't want to get into the whole thing but it is built on autonomy >> that's buffett talking some climate over the week, jim he did say that people on both sides of the climate debate at

the extreme are a little nuts. i wouldhate to have all hydrocarbons banned in three years. talking about the polarity of the discussion right now. >> again, the strawman the preposterous we're talking about a man who owns, what, the most, in the country, burlington northern and i would like to see those companies be as green as possible without hurting profits. i think it's possible. and i betcha they really are and maybe he is unaware. but it's everybody's job now it's the planet. that's another form of change that these two men don't seem to acknowledge. >> sow basically seem to be -- so you basically seem to be saying he is unaware of the true changes in the capital markets whether it is people who are investing and the overlay now, of a lot more concern about

things other than simply profit. >> yes i am saying that it's entirely possible that they don't simply care about the environment we had a president who didn't. not at all but it's everybody's duty and i'm not going to say because they're folksy brilliant men that their view is right it's everybody's job it's their job i think that they should be more concerned. >> just one more layer of discussion out of the berkshire hathaway meeting, guys, as we get the opening bell at the nyse and the nasdaq, and breadth down below at the s&p 500, cnbc realtime exchange. jim, as far as the play book for may goes, interesting comments over the weekend we got bridge donald trumpwater's co-ci talking about a good portion of the stocks being in the bubble but saying that shorting it is the easiest place to die and b of a today once again talking

about sell side indicators and i think the report is entitled inching toward euphoria. >> well, i don't know what to tell people. you want to tell people that they're not allowed to make money? that you want to tell people that they should be in cds real estate is great i'm not necessarily recommending the cryptos, but they've been terrific stocks have been great you can get the dividend stocks, they're not that great, but i don't think anything's worse, as worse as cash. david, i think, look, i think that people can make money, and then they're allowed to sell buffett doesn't want anyone to sell, by the way that's a shame because if you bought bitcoin, at 12,000, a sliver of it, i think you should sell some, lock it in, play with the house's money, but again, why are those people per se gamblers and wrong? when you listen to some of the great people come on our network and they encourage this, and

they make people a lot of money. is it real money look, what's, they don't asterisk it. jpmorgan takes it, you sell some, i bought, i bought an estate with this stuff. >> you did. >> yes >> is it nice? >> really very private nice house i bought it with bitcoin. >> right and now it will generate real income for you. >> look. look, i'm very fortunate i admit i was poor, i went to goldman, i made money, ran a hedge fund, made money and you could say jim, you are another guy who doesn't favor change and i bought bitcoin and it went up a lot and then i built real estate and i think toll brothers would say your real estate is pretty good. and then that stock. i want to take the other side of trade if only i see people making money and i'm proud of being a part of them making money. >> jim, i think what these, i

won't call them bears, but these cautious outlooks are reflecting, are a question about what the environment looks like when money growth isn't exploding year on year, when personal income isn't exploding, when the percentage of personal income that's a government payout isn't exploding, the environment gets a lot tougher and i don't know if you will see bitcoin now perform a host of other asset classes those years. >> no, but when the 12 gainers overthe past two years, and let's go over them, tesla, 1,290, solar up 106, generac, a play on how bad the grid is 440%. penn national. a play like draftkings the legalization of gambling and nvidia probably the grea chip company of our our time and others are applied materials and lam research, based on the concept of solving the chip shortage that they talked about on "60 minutes." are these fanciful are they not get-able? i think they're get-able

i just don't get the contempt people have for those who are trying to find these stocks. by the way, did buffett buy any of this? he managed to buy the banks at a price that you and i can't get. >> that's true he is able to do deals that nobody else can. >> i want to say they're brilliant, they're fantastic, i love them, they're great. >> that oxy piece of paper, remember that? >> they're brilliant and they're fantastic and i love them and they're great. did i tell you how i feel about them >> i think everybody can tell how you feel about it. >> i just think the people who are at robinhood, look, i'm sorry, democratization, some of them will be fools, absolutely how about the people who learn to buy stocks the way warren buffett did? they went to school, and they studied, why are they not allowed to -- no, you would say it's not illegal remember, he catches it. >> he was talking about a

particular sub-set, using options in a very aggressive fashion. in a sense making it more like a casino and by the way, i hear myself doing that and then i think about the guy at archegos. right? >> thank you >> the incredibly well-healed investor with 25 years of experience tiger cub. who goes out and does what he did. is that any less being insane? >> no. >> but how about james goreman, who buys a company who helps people work at companies that come public? >> you're talking about morgan stanley now? >> yes. >> buying what >> getting diversified away from their own company. very young very young people who are trying to learn but if we listen to buffett, and munger, what those people should do is what, index funds and cash i'm not sure what else, what happens if they look at other companies that are in their business are they all trying to bide theranos no that's the extreme example that these gentlemen are using. the strawman

>> right right. >> do you remember, i mean carl, when we were sitting on the nyc, i would do this occasionally and talk about a company, an enormous company that was buying back stock, but not necessarily using a huge amount of pool of capital to buy other companies that had very old, let's be honest, very old ceo, with no clear exact, at least communicative succession plan, and on and on, and i was like, activist play book, right? of course it would never, ever happen there have been a couple who thought about it briefly >> are you allowed to criticize them >> you clearly are. >> do you think i will be branded -- >> i don't know. i don't know >> carl, we got a lot of other news to get to i want to get back to you, though >> guys, you were just, david, you were mentioning buybacks, actually it is something that pat gelsinger brought up on "60 minutes" last night and said we will not be anywhere near as focused on buybacks going forward as we have been in the past and he talked about this new spending round on a couple of fabrication plants in arizona.

take a listen. >> i think we have a couple of years until we catch up to the surge in demand across every aspect of the business >> it used to be that there were 25 companies in the world that made the high end cutting edge chips. and now, there are only three. and in the united states you. >> yeah. >> one >> 25 years ago, the united states produced 37% of the world's semiconductor manufacturing in the u.s today, that number has declined to just 12%. >> it doesn't sound good. >> it doesn't sound good. >> and anybody who looks at the supply chain says that's a problem. >> jim, cbs had that last night, as well as taiwan semi on sunday morning, saying that they think they can meet the minimum auto demand by june >> i think a lot of companies are attempting to reconfigure, and attempting to reconfigure for some of these lower end chips that don't make people,

their companies a lot of money i find it interesting that leslie stahl really did nail intel. intel spent a huge amount of money on what i regard as being creative financing, just buying and buying and buying their own stock, david, and could they have continued to build fabs like they did, absolutely, but it's cheaper to use taiwan semi. >> yes. >> why not >> we've been talking about these issues for a lot longer but it's interesting when this thing gets to "60 minutes" and becomes something mainstream. >> exactly part of the national conversation a couple of things on my end to get to not large. but one of meredith selling the local media group, 2.7 billion in cash and meredith stock is doing quite well. >> really? >> i should pay attention to that. >> about half the size or so of that verizon deal. in terms of verizon media, to apollo you're going to get basically the same thing they're doing it as a spin

cash consideration 14, 15 one for one. take a look at shares of meredith there off the highs. up as much as 12% when i looked at it a moment ago and smack spac land, to note one thing, there is a deal to acquire one of these lidar companies. >> which one >> it was the company, it was ai, remember - >> sure. >> we talked about them. >> yes. >> and what is interesting they negotiated the merger agreement lower and this is from the press release. due to recent valuation changes of publicly-traded lidar companies and changing conditions, there it is, thank you, in the automotive lidar industry, they have amended their previously-announced merger agreement, and under the terms of the amended merger agreement, they will pay a basis pre-merger $1.52 billion instead of $1.9 billion.

we might see more of this. they weren't going to get the vote and the support of the transaction. they pushed that out as well but a significant lowering of the overall valuation of the transaction by one, again, a spac that had been trading below ten, and conceivably might not be in a position to get enough people to support the deal on its then terms. >> it could be a new wave. now, where i totally agree with warren buffett is the spacs being horrendous, really benefitting a few. and maybe this is the beginning, david, of where -- >> again, do you have that opportunity. now of course, what i would point out with spacs, is that, yes, the sponsor and the investors don't necessarily have the same, they all will argue with me, of course, we're incented, but the sponsor can make money, down, carl, to as little as two bucks on the stock price oftentimes if you look at the sensitivity analysis, and i have a couple, i can't share them, you can get

down to as low as 2, 250 a share where they're really in danger of losing any money. obviously any shareholder that bought a spac that went below 10 and still had it for some reason, that's not the case. so there are some differing incentives let's say it leave it at that carl >> wow or a moral failing as munger said over the weekend. >> guys, most sectors green. we're led by some of the reopening names in the financial and energy space let's get to bob pisani. >> that's what exactly what is going on it is the reopening and why shouldn't it be with the earnings and the reopening news, tremendous economic news on top of tremendous earnings take a look at the sectors it's energy and bank, the reopening sectors and seeing some industrials up, tech is doing okay, and defensive names like reits, utility, they're lagging, so this is the reopening story. if you look at the leaders in the s&p leader board

i look at the s&p rather than the dow, you can see it's all the reopening names once again, so you get u.p.s., another new high, fedex is not far, material names like freeport mcmoran and high end consumer names like united rentals doing well today. and we're about 60% through earnings season. 300 companies reported not only is the numbers blowout, but the guidance is very good on top of that. so remember, 60% reporting we're essentially up close to 40% compared to the first quarter of last year close to 50%, excuse me. but the beat is what's important. 23%. those are titanic numbers. remember historically, the beat used to be 3 to 5% now it's 22% so the analysts have been consistently wrong this is one of the reasons why the market is still up and there's a number of reasons why we're at new highs the most important thing is the earnings growth is much better than expectations. but we also see the reopening

proceedings. we see the economic data strong. the economic data is also above expectations and finally, of course, fiscal monetary stimulus is continuing. you put this all together, and it's no surprise that markets are at new highs let's talk about why is the s&p up like 13% this year. we'll go back to the old jack bogle principles, there's three reasons why stock prices move, earnings growth, dividends growth, and the multiple increasing or decreasing so earnings are up for 2021, about 10%, compared to the start of the year, and dividends, estimates are going to be up about 5% this year right there 15% growth there's the s&p up 13%, right there on the earnings growth and the dividends growth the p/e ratio is about 20 now, including 2022, parts of that, that's been going down, that's generally good and liquidity, there's been a huge inflow and waiting for the may numbers to come in for mutual fund and etf inflows but they're very, very big and those numbers later today. a lot more money coming into the stock market

one problem if you want to look at what is going on is the s&p, we hit, when earnings started april 14th, with jpmorgan, essentially flat since then, and carl, we're up no less than 1% that's an indication, all of the growth was in the enof march, beginning of april, since we started earnings, it's basically flattened out, and that's the problem. this is that peak idea, peak earnings, peak economic growth, peak reopening a little harder to move the markets forward from here. back to you. >> all right, bob, thanks for that peak inflation is a little more difficult of a story to pin down we got a lot of commodities in the green. let's get to raick santelli. >> good morning, carl. we are expecting the market pmi to come out shortly and while we're waiting for that, look at the train-day of 10s and dropping all of the treasuries as the futures markets open in chicago at 8:20. a little loftier in yield, a little haeft yer in price overseas and if you open up the

chart to two weeks, we can see once we popped up over 1.60, we firmed up a bit. so you want to mentally use that level like traders are as a pivotal area if you look at bund yields one of the reasons we propelled higher, their two-week chart is evident, they closed at minus 20 and traded as high as minus 16, today, if you open the chart up, they go all the way back to january of 2020, you can clearly see that this is the highest post-covid yield, the lowest price, and the april final for markets, manufacturing, pmi, is hitting the wires, at 60.5 we're expecting the number, a few tenths richer than that, but that is roughly as expected, and it does of course challenge this notion of the post-covid high, so we replace 60.6, with 60.5, and that is still a post-covid high read for this metric. and of course, we're' going to have more pmis, coming up along

with construction numbers and finally let's get back to the charts if we look at the euro currency and the context that interest rates have moved higher, you're going to be a bit disappointed look at the two-week chart we've actually started coming down in the euro currency. it's down about a euro from the highs on wednesday that were right around 1.21 1/2. it looks like the euro currency, especially post-ecb meeting, is where most of the pressure ended up but now look the at handoff from the currency side to the interest rate side as more and more are now saying that the stimulus in europe, as vaccines start to get out there, it is something that may have to be pulled back a bit carl, jim, david, back to you. >> all right, rick, thank you for that rick santelli. coming up, a little bit later on this morning, an exclusive with the ceo of ebay, coming up in the next hour. we got a record high on the transports today and we need about 20 more for the s&p. although this is the dow's best in since about 2021.

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i wouldn't move across the street to save my children $500 million in taxes so i have -- that's my personal view on the subject. but i do think it would still have been worth it to drive out there as citizens. the old people, who don't commit any crimes, they donate to the local charity. who in the hell in their right mind would drive out the rich people i mean, florida and places like that are very shrewd and places like california are being very stupid it's contrary to the interests of the state >> after dissing spacs and bitcoin, he saved fire power for tax policy. >> i think that we saw this was dave temper when one of my favorite guys, big money manager, hedge fund, where new jersey drove him out then of course he came back. >> he came back.

>> which argues, you don't want to leave your friends and family behind if you can have them there. but i also get it. >> i think he's right on this. >> i'm looking at the preliminary budget for the city we all live in, 98.6 billion for fiscal year '22, the city of new york, it's basically the same size as the state of florida >> incredible. >> half as many people if that you can argue that that's a crazy number, and that, you know, with 40% of the income tax being paid by less than 1%, that could be a concern if you drive those people out. >> i have a lot of friends, carl, who moved to florida. >> you do? >> i have a lot. when i was down there in del rey, i was shocked at how many why? because they make a lot more money doing the same thing. >> they save 13, 14%. >> that's a lot of money. >> i'm with munger on that. >> are we going to be

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let's get to jim and starting trading. >> it's cap stores, up 75% as part of the lag, l brands, american eagle outfitters, and gap stores these are the three, if you look at that chart, you have to say, what is sonya seigle doing is it all just various brands that are finally hit something no, it's everything style. styles great for gap stores of all places and the mall, well, what can i say, carl, people go to the mall. they do. it's something that they've started doing again. and we have to notice that the malls are packed, carl they're doing quite well >> although, jim, i did see you tweet this morning about friends you met over the weekend who were taking pride in not getting the vaccine, and page 1 in the times today is about the idea that maybe we don't get to herd

immunity because of the hesitation. >> i was with several groups, actually many different groups this weekend, and i wore a mask, and other people didn't, so i said, boy, you have great faith in the vaccine, that was my whole wrap and almost universally, they said, no, we just don't need a vaccine. now, if we have no immunity to something, then why are we saying there's no need for vaccine. carl, i don't know i found it discouraging, very discouraging it was in pennsylvania, by the way. >> we made a lot of progress as dr. gottlieb said over the weekend. jim, another busy week of earnings, we'll keep it off on mad. >> we have a new company, a cfo, a spinoff, a really great company. i love logistics companies, like plastics from the graduate sarah greenstein, makes a lot of equipment for masks worldwide, including china.

but they also make auto parts. i want to find out whether that's hurting, carl, because of, yes, the chip shortage >> jim, nice to have david back, we'll see you tonight 6:00 p.m. eastern time we're not too far from a dow intraday high, something we have not seen since april 16th. dot ay. n'gowa

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good monday morning, welcome to another hour of "squawk on the street," i'm carl quintanilla with david faber and morgan brennan we're about 60 points away from a fresh all time high on the dow, let's get to rick santelli. hey, rick. >> ism, carl, for april, is coming in on a disappointing note we're expecting a number in the mid-60s. 60.7 60.7 now, of course this goes back to january last time we were under 60 we were at 60.8 for february's final read 64.7 for march's final read. definitely a step back now, if we look at prices paid, they didn't step back. they stepped forward

89.6 89.6 that is the highest level since june of 2008, and if we look at new orders, 64.3 also sequentially missing from 68 our last march read, and finally, on employment, and especially important number considering it's coming out at the end of the week, 55.1, versus 59.6. we're awaiting construction spending gang, and it's hitting the wires now, up 2/10 of 1%, a fraction up the 1.7 we were expecting and follows a minus 8/10 this is definitely another miss on construction spending, and how important is it, of course, to get the construction going. we know what housing demand is, but there's a lot of issues in construction, maybe finding people to work not the least of which is making it more difficult to bring people back in considering some of the benefit issues that keep people at bay.

morgan, back to you. >> imagine prices paid is in focus with that one too. rick santelli, thank you we are 30 minutes into the trading session, and here are three stocks we're keeping an eye on, starting with verizon, selling media assets, selling aol and yahoo to apollo global management for $5 billion. you can see shares are up fractionally 1/2%. the court battle between apple and epic games with the future of apple's app store at sake ceo of apple tim cook is set to testify for the first time at a trial. shares are higher right now, though, up more than 1%. estee lauder under pressure after reporting results. revenue coming in below forecast sales of its higher end products were impacted by people continuing to work from home those shares are down 5 1/2%, carl, i'll tell you, lipsticks and masks, also do not mix >> that goes for makeup, generally, i would argue, morgan thanks as you know, over the weekend,

buffet and monger reunited at berkshire's annual shareholder meeting taking place in los angeles instead of omaha, answered 3 1/2 hours of questions from our own becky quick who joins us this morning with some of the highlights. becky, just a mountain of news and headlines. good morning, good to see you. >> good to see you, too, carl. the berkshire hathaway annual shareholder meeting, as you mentioned, this meeting over the weekend generated lots of big headlines. maybe the biggest was an inadvertent comment that came from charlie monger. >> that's absolutely true. i will say this, decentralization won't work unless you have the right kind of culture accompanying it >> but we do and greg will keep the culture >> seems lining a pretty simple comment but it actually spoke volumes to the berkshire faithful who have been wondering about the conglomerate plans for years. fueling speculation that the top job will go to vice chairman

greg abel who runs the noninsurance operations. i spoke with warren buffet after the meeting and can confirm that is the thinking of the berkshire board today. here's what he said. the director's are in agreement that if something were to happen to me tonight, it would be greg that would take other tomorrow morning. he praised handsomely, abel and ajeet jane both of them were in the running of the top job because they were promoted in 2018 buffet did say age is a determining factor for the board at this point. abel is 59 years old, and jane is 69. but, again, just said that they would really like to see somebody who has a runway of at least 20 years running the company, but he had high praise for both executives. there were a lot more headlines from the meeting as well the longest tenured vice chairman, monger hasn't shied away from bitcoin in the past, and he doubled down on those

sentiments. >> those who know me well are just waving the red flag of the bull of course i hate the bitcoin's success. and i don't welcome a currency that's so useful to kidnappers and extortionists and so forth, nor do i like just shuffling out a few extra billions and billions and billions of dollars to somebody who just invented a new financial product out of thin air so i think i should say modestly that i think the whole damn development is disgusting and contrary to the interests of ci civilization, and i'll leave the criticism to others. >> okay. he'll leave the criticism to others when it comes to the state of the economy, warren buffet has a unique view. berkshire owns nearly 60

companies, geico, and clayton homes, and fruit of the loom. >> it's very interesting we're raising prices people are raising prices to us. and it's being accepted. i mean, it's not -- if we get -- well, take home building, we've got nine home builders in addition to our manufactured housing and the operation which is the largest in the country. we really do a lot of housing. the costs are just up, up, up. steal costs. just every day they're going up. >> now, buffet went on to say that it's not a price sensitive economy right now. there is quite a bit more inflation than anyone anticipated just six months ago. people at this point have money this their pockets, and he says

they will pay the higher prices. he called it almost a buying frenzy carl, i should point out, i know that jim had thoughts about what they were saying over the weekend, too this wasn't a situation where they said they don't care about climate change, and day don't think it's a problem what they said is that they didn't want to go along with a proxy statement that was sponsored by some of the pension funds who they said buy their shares with other people's money, money, wanting them to fill out forms at headquarters. they want out of their way to say that burlington northern and berkshire hathaway energy, the two subsidiaries that have the most to do with carbon emissions have been doing a lot to address that pointed out that berkshire hathaway energy has retired more coal plants than any electric company in the united states, and they're continuing to do that, and continuing to pour their money into transmission efforts that would use more solar and wind, take that power from places where the sunshines, and where the wind blows, and try and get it back to the major hubs of cities, and that's what

you have to do if you're serious about cutting carbon emissions they say they are in favorite of that, spending a ton of money to make that happen they don't want to fill out forms to explain what every one of their sub seconsidiaries, ing dairy queen are doing to fight climate control. >> i appreciate you adding that. that's an important kcomponent. they're going to cut emissions by 60% by 2030 overall i did want to come back to you on succession. two guys over 90 years old, you could understand why people would be focused on it and yet, you know, you do wonder, becky, and i mean, obviously you've forgotten more about this company than i know, but how it will be viewed once it is no longer warren buffet's company, regardless of the talent of whoever is appointed to be ceo. he still is the secret sauce that makes it all work in a sense, isn't he? >> you know, i think there's a

buffet premium that fwgoes along with things, and we saw this in the financial crisis when buffet was able to step in and do it for the deals, for the banks and ge he was able to step in and do those deals quickly, and that's not necessarily something you would think a lot of other people do. you know, it will take time. we'll see what happens with this if you look at greg abel, he's somebody who's a deal maker, an operations guy who understands many of these businesses very quell, and all of the noninsurance operations report through him. he's been hands on and deep in in of these operations got a decent relationship with jane, too, who runs the insurance businesses you're right, there's something to be said about working for warren buffet and the deals he can get done it's hard to say what happens down the road with that. obviously they spent a lot of time trying to kind of mold the people who they think are best for berkshire, people who have been there for a long time, and who understand the company and the culture very well.

>> becky, great stuff. thank you for bringing us the highlights there was so much covered over the weekend. we appreciate it becky quick. >> thanks, morgan. we're going to bring in our senior markets coordinator mike santoli to keep the company going. the fact that inflation came up in the conversation, obviously talking about it, and talking about it, but from a market's perspective in the midst of earnings season, given the comments we see from other companies, all the focus on the fed, despite the fact that policy has shifted and messaging around the policy has shifted there. what's the take away from a market standpoint on a day where we see sell in may, historically we're seeing markets rally. >> the market has been relatively comfortable with this idea that we're going to be running a high pressure economy, the combination of the huge snap back in growth, the fact that we funneled this money to households, and they're spending it, and prices are going up, we might be running at a 10% nominal gdp pace right now, if you think about the gdp plus

inflation whatever we're going to be seeing the markets are relatively comfortable, one, because the main risk in historically, when you did see a little bit of an up tick in inflation, and inflation expectations it came with, well, the fed is going to have to tighten and now that's not the case the fed is trying and trying to per persuade the markets that it has a different way of engaging, and trying to stoke longer term inflation. it means something for which types of stocks work and don't work, and you see with pricing power, right there in the middle of this very intense kind of demand driven economy and display constrained economy for goods. the upss of the world, everybody with pricing power, and home improvement, and i think for that reason, the economy is okay with it, and one more point, which is a lot of the scarcity and a lot of the supply constraints are in things people don't buy frequently, whether it's homes or cars or appliances, and they often buy it with borrowed money, as well

as savings right now we're absorbing it, it's unclear whether it means something down the road for discount rates and pe multiples and all the rest >> mike, on earnings again, going into the season so far, 87% are beating that's way above the normal rh owe ratio in the mid-60s b of a talks about negative alpha companies are overperforming by less than usual. how much has the street had it with clear earnings beats. >> at this point, i mean, the market figured it out, even though analysts were slow in raising estimates enough i think we have seen this for the third quarter in a row, where, you know, the market prices most of it in also historically, if you look at extreme levels of earnings beats, it's not that predictive of better performance going forward. i think that's what we have to deal with. the obvious slow down in terms of growth rates, but forward estimates keep going up strongly, and that supports the market it keeps it from seeming that

much more expensive, even though, you know, orbviously the s&p is going higher, and bond yields are not going lower that should basically, you know, help things. you have to have those earnings estimates to keep rising >> yeah, and of course corporate guidance continues to be exception exceptionally strong to your point. as we go to break, here's a look at the road map for the rest of the hour including the ceo of newell brands, as the economy begins to reopen. splash down for spacex, the dragon capsule landing in the gulf of mexico, we've got those details. >> and we'll have an exclusive interview with the ceo of ebay, commerce trends, the fall in the stock price, and a lot more. big show still ahead don't go anywhere. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit

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. >> take a look at newell brands this morning in the neighborhood of a three-year high roughly the company reports earnings where its top line up, 21, earnings per share, tripling year on year during the first quarter. joining us is the ceo of newell brands, ravi always good to have you. >> thank you so much for inviting me back. >> it's a fascinating look at where we are, really, in the broad economy because we mentioned some of the metrics, the take is that the consumer continues to be incredibly

aggressive and it sounds like you think it's really home spending that has continued momentum >> absolutely, carl, the home has become the hub and post covid, it is really people are spending a lot more time at home, and given that the home has become both the workplace, the place you take kids to cook, to eat, we have great transitions, olster or so on people for relaxation are uplifting their moods after a stressful day are using yankee candle for serenity and so on. and we're really seeing the amount of cooking that's going on the number of meals, 80% of people are eating and cooking meals at home.

it's the highest in 50 years there's a lot more occasions, breakfast and lunch, dinner, et cetera, so that is very positive, and all of that is having a great impact on our brands, and of course the fiscal stimulus added to all of this. >> of course you're exposed to commercial categories, food service, and sharpie and paper mate are exposed to the office culture. where do you see that going, how consistent do you see this return to office mentality expanding? is that going to be a thing this year >> so i think the most important thing to us, it's a very critical business, tigris margins, we started seeing back to school in person. about 61% of school districts are in person, and about 47% for students are in person

so that is really helping our business, we saw it grow at the same rate of the company in the quarter, which is tremendous, and that is quite exciting for us in fact, the office channel, the overall channel for the first time grew very modstly but grew, so as far as offices are concerned, that's going to be more of a hybrid for the rest of the year that does have some softness but for us, schools and universities are the biggest aspect of the writing business but we also have other things in the writing business, labeling business, share, consumption and sales, and so that's a big positive, so to launch the s sharpie gel plan captured america's imagination. >> you said in the results last week, the second half of 2021 is

difficult to predict, yet you upped guidance after one quarter. what gave you the confidence to feel you could do that >> so thank you for that, morgan it's really, yes, the second half, because we are comping huge growth from last year second half, we were up 6%, so the question is how will we do we felt with our projectionis, we'll be higher than 2019, and a lot of that has to do with the continuation of consumer trends, whether it's cooking and a big part of it is we believe that students will be back in school. we'll have a normal back-to-school season, and that's a big factor for us that's exciting, and the thing was, morgan, all eight businesses of ours performed well in groups and seven out of eight grew double digits, and it was across the world. all four regions across all

channels that gave us the confidence and we're lapping a poor quarter last year second quarter so we were able to significantly up that we said 17 to 20% organic sales guidance, so i think all of that contributes to a optimistic view for us that newell is really back, and the turn around is really really gaining momentum. >> yeah, but do you really think people are going to be cooking as mump in their homes, and buying yankee candles as they start to return to the office and start to go out in general >> so look, the levels may come down a bit think about the number of eating occasions that's increased and this hybrid model is going to stay at least through the rest of this year. but also i think all companies are reevaluating and providing more flexibility to their employees. so with that, we do think that there will be a remnant of this, but just think about this in terms of, like, we brought a

whole new set of users, using not just for kcanning but a lot of other things. interest in fan tri pantry, the pantry on instagram is up a thousand percent we think these trends are going to stay. plus, we're innovating quite a bit. we're putting a lot of meaningful consumer innovations, we believe we can sustain growth as we go forward. >> ravi, you guys have a fascinating set of eyes on both office and home, and we look forward to checking in with you in quarters to come. appreciate it very much. thanks >> thank you thank you very much indeed >> coming up, we'll have an exclusive with the ceo of ebay, jamie iannone, we're back in two minutes.

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let's get a news update on this monday. rahel solomon has it >> good morning, here's what's happening at this hour the situation in india is worsening with oxygen in short supply total infections nearly 20 million after seeing a daily surge of more than 300,000 new cases for a 12th straight day, the prime minister's office say

they will build temporary hospitals and oxygen plants to try to battle the surge. the u.s. sent $100 million worth of supplies, that included 125 125,000 viles of the antiviral rem d remdesivir in europe, the eu's executive branch has proposed easing travel restrictions for its 27 member countries travel in the block has been extremely limited, although the ramp up in vaccinations is now giving leadership hope that they can relax some of the limitations, leading into the summer travel season and domestic travel hit a fresh pandemic era high on sunday as more than 1.6 million americans passed through airport security check points that is the largest total since march 12th of last year. you are now up to date david, i'll send it back to you. people are flying. people are out there. >> i was the planes are crowded. >> hope you went somewhere nice, david. >> i did no complaints, thanks, rahel.

ebay, it was weaker than expected guidance that sent the stock down over 10%. joining us is ebay's president and ceo, jamie iannone, jamie, always good to have you, let's start off with the fall in the stock price. it was notable it was a fairly significant drop, and i mean, simply put, if i could, those selling the stock, perhaps, were doing so on the belief that the gmv increase you saw, driven in part, they would argue by the pandemic is not durable. how do you answer that belief? >> yeah, look, first it's important to recognize the quarter, 38% in the quarter in revenue. we haven't grown at that level since 2005 gmv grew at 24%. if you look at our outlook at q2, $4 billion in gmv year over two years, a sizable amount of growth we feel great about where the business is. it's important to take a step back and look a year ago, the

business was contracting at 2% now we're a $10 billion business we have added over $2 billion in revenue over the last 12 months. payments in advertising is in allowing revenue to grow even paster than gmv. we're a top 20 advertiser, even though our main business is in ecommerce. the most important thing is that our core playbook is working and we're expanding to other categories take a category like sneakers that have been declining double digits, and now it's grown triple digits four quarters in a row. we have only just gotten started with a single digit percentage on this new play book, and it makes us very optimistic for the future of ebay. >> tell me a bit more about some of those verticals that you have been creating. i guess, you know, one to come to is trading cards. you know, and again, i come back to this idea, is this ephemeral or is this something you believe is going to be with us for quite some time, and therefore you're going to continue to see the kind of growth you already have? >> you know, collectibles is a core category and trading cards

is a key part of that. we have already done a billion dollars in gmv in the first quarter, and that's more than we did in half of last year's record setting levels. we think collectibles will continue to be an important focus for us if you think about the business, we have shifted to non-new season we're high single digit, low double digit penetrated so we have lots of opportunity for growth not just in an area like collectibles, but in a lot of big categories where we haven't even yet rolled out our play book think motors, parts and accessories, fashion, electronics, lots of opportunity in skp runway ahead for ebay. >> we saw a graphic that showed your active buyer counts, about 187 million globally, up 7%, there it is again, and over the last year, you added 13 million buyers can you continue at that pace again back to the overall concern of those who sold the stock. there seems to be a belief that your growth overall both in gmv but also in the marketplace itself is going to slow. >> yeah, when you look at those

new buyers we acquired, 13 million new buyers, a record setting number, what's great is their behavior is similar to buyers before the pandemic, so they didn't just come to us for one and done and actually to buy pbe, or something like this. they are sticking around and turning into enthusiasts, as we're changing the customer experience across ebay and our focus on nonnew season take certified refurbishes, it comes with a two-year warranty, 30-day hassle free returns we're authenticating watches, that grew at 16% last quarter, now at 38% when you think about payments, and the ability to have one integrated experience, that means these cohorts are going to be healthy for a long time. >> i'm glad you brought up payments in changing the buyer experience, ebay has been focused on scaling out this managed payments piece of the business i mean, given the fact that you parted ways with paypal a couple

of years ago, you look at the payments processing place, cryptocurrencys taking on attention. it's been adopted. how are you approaching that at ebay. >> one of the great things about our managed payments is we're expanding taking apple pay, google pay, more choice for buyers, we continue to look at options like cryptocurrency, one of the great things about ebay, a new trend shows up on ebay, we're seeing in areas like nft, looking at how we can explore that better. ebay is known as the place to transact goods with 187 million buyers on the platform, this is the place that sellers come to get scale demand and we're happy, the seller growth was incredibly strong in q1, and sellers are migrate g to the platform, and online, and getting access to the world's reach on ebay. >> does that mean you're getting into the nft business? >> we're looking at it and exploring opportunities for how we can enable on ebay in an easy

way. when you think about collectibles, everything that's collectible has been on ebay for decades and will continue to be for the next few decades. >> how long do you think it will take you to understand how to make that actually work if you make it work >> there are parts that are transacting on ebay today. what we're about is how do we enable and take out the friction in the experience, so everything that we're doing in our playbook is how to make ebay syimpler for buyers, acquiring buyers like sneakers, they buy in one category, and start buying across the whole site. >> finally back to sort of the macro picture, and you were asked about it on the conference call, jamie, you talk about mobility, which in a sense means return to more normalcy, and it may have impacted your ability to accurately forecast your future, which is always hard how are you feeling about it right now, in terms of what you see out there, with the mobility and stimulus, and obviously how your business benefitted from things that occurred previously, and how you look at what is

coming >> yeah, look, it was an unprecedented year we laid out this tech-led reimagination last july, and we're nine months into it and just getting started category by category, what we're doing is changing the nps and the customer experience. buyers and sellers are following, and then gmb grows as a result we announced, for example, in trading cards, not only is the business strong, but we're leading with computer vision, image based scanning that will take 3/4 of the time out of how do you list a trading card on ebay we'll actually figure out all of that information for you we think there's lots of growth in an area like collectibles we announce customized and personalized we're sellers. we sell millions of these itemings another new category, but if you think about it, we've only touched a single digit percentage with this playbook, and we're going to expand it to major categories over the coming quarters and years that's lots of growth opportunity for ebay. >> i have an old meg whitman

ebay trading car does that actually have value, do ex-ceo's of ebay have value. >> absolutely. you'll find a better trading experience when you try it out with your selling experience, you'll have an easier time getting paid, we have now integrated payments. i hope you use our advertising platform, that's doing a billion dollars of gmv, so you're experiencing the new ebay, and i encourage you to sell the card, and we'll talk about it. >> you have mentioned ads a few times obviously. people took note of amazon's quarter certainly. how much of an opportunity do you see in terms of ramping advertise in overall revenues? >> it's a massive opportunity. we're only 1% of gmv through our advertising business, and so we think there's an opportunity to have, you know, we look at comps, kind of single to mid digit percentages of gmv, but more importantly, the return on ad spend our sellers are seeing, is very very attractive for them i believe there's a lot of room.

we grew 58% last quarter in promoting listings, and wrote out three new features we rolled out a cost per click opportunity that we're testing now, advertising for auctions and we're rolling out off ebay advertising, where we're cofunding advertising opportunities. we believe there's lots of opportunity. we're already a top 20 advertiser, but we think there's lots of growth and the ability for revenue to keep out pacing gmv, in what we're doing for advertising. >> appreciate the update, keeping an eye on the stock prices as well thanks for joining us. >> thanks, david, take care. >> a meg whitman trading card. that appears so random. >> from their annual event, she signed it too. >> autographed and everything. >> meg whitman trading card, but i'm not parting with it. no. still to come, savings bonds for vaccines, don't miss west virginia governor jim justice on his state's w ittineiniave to get more people vaccinated

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why investors may want to consider selling big tech in may. we'll go behind wells fargo's new call on tradingnation.cnbc.com more "squawk on the street" straight ahead - [narrator] grubhub perks give you deals

on all the food that makes you boogie. (upbeat music) get the food you love with perks from- - [crowd] grubhub. well, it's a killer. the spacs generally have to spend their money in two years, as i understand it they have to buy a business in two years. if you could have gotten into my head and said you got to buy a business in two years, you know, i would buy one, but it wouldn't be much of one >> i call it fee driven buying in other words, not buying because it's a good investment they're buying it because the adviser gets a fee and of course the more of that you get, the sillier your ci civilization is getting, and to some extent, it's a moral failing, too, because the easy

money made by things like spacs and return derivatives and so on and so on, you push that to excess, it causes horrible problems for civilization, no credit on the people doing it, and no credit on the voters that will allow it. i think we have a lot to be ashamed of in current conditions. >> that's munger and buffet at the berkshire meeting over the weekend, taking no prisoners on spac, on bitcoin, on robin hood, david gaveli called it a display of intellect and energy. that reflection was not uniform. >> jim was quite critical, and i do think, and i was glad becky brought in some of the facts there in terms of climate, jim was critical as well of criticism as you heard of those who use the robinhood platform on spacs, they get no argument for me in some ways.

investors have the opportunity to buy and attend, and conceivably sell at that same price, if they don't like the deal, but the incentives are not fully aligned, right, a sponsor can go out in that two-year period and buy a business, and just hope that they can get it approved because even, morgan, if the stock price were to fall well below ten, the sponsors getting roughly 20% of the shares of the overall shares of the spac for free, essentially, they're paying costs, 7 million bucks sometimes for filing and things like that. if they can keep it above 2 1/2 or 3 bucks over a long enough period of time, they can still make money obviously if it goes to 10, if it goes to 15 or 20, it is a huge opportunity for these sponsors, enormous, now, of course the other shareholders also benefit in that case. but it's below ten where it gets a bit less clear, where the sponsor makes less money, those

buying in, do not. >> i think it's such key contacts you bring to the conversation we are starting to see the cold water be thrown on spac activity in general i mean, it's not like the first quarter where we're seeing how many announcements and companies going public via spac a day. and that's in part because of the s.e.c. guidance that was issued last month, case in point, take a look at shares of virgin galactic, down about 7% companies can delay its quarterly results by a week, it may restate guidance because of the new guidance from the s.e.c., from financial regulators i would expect we're going to see a lot more of that happening as well. >> it has to do with the pipe investment, and the warrants, in terms of how they are actually accounted for, carl, but also it has put a halt to a certain extent on pipe investors and their willingness to step up, and then the last hour, of course, you mentioned the renegotiation of the merger terms for one of these deals we'll continue to watch spacs,

when morgan noticed the issuance has slowed dramatically in the last few weeks. >> still crowding out other buyers, as buffet complained about over the weekend one story that's going to heat up, apple versus epic, hits the courtroom, the ceo tim swoeeney arriving a few moments ago in oakland. coming uonp tech check, kara swisher will break it down we're back in a couple of minutes.

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on behalf of nasa and the spacex team, you have earned 68 million miles on this voyage. >> that's spacex mission control welcoming back four astronauts of crew 1 who just befor 3:00 a.m. eastern sunday morning returned to earth in spacex's resili resilience capsule just off the coast of florida, the splash down, the first nighttime splash down with astronauts since 1968 marking the successful end of nasa's first ever operational crude mission by a private company crew one had been aboard the international space station since november, and what is to date the longest ever duration for a crew launched in an american built space craft

nasa's second mission, crew two, launched last month. it's already underway. as for the dragon capsule, resilience, it will be reused later this year, as soon as later this year, for the first ever all civilian trip to orbit, inspiration four >> what do you get for those miles, rights. >> yeah. 68 million good frequent flyer program. >> over to dom chu. >> hotel room use those miles, senate space station something like that. materials and energy leading the sector higher. energy far and away best performer today. within the energy trade in particular, tracking notable names, baker hughes, halliburton and bolero as well those helped along by rising optimism over economic reopenings and demand for fuels. data from gas buddy showed yesterday was the highest sunday demand for gasoline since the pandemic began

so kind of gives you an idea demand is returning. we'll continue to watch the trends as people hit the roads for the summer travel season keep it right here energy, more "squawk on the street" coming up ahead. stay with us.

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welcome back the governor of west virginia is giving $100 savings fwbonds to resident 16 to 35 for getting vaccinated governor, thanks for being back with us. >> no. thank you so much. appreciate it. >> all right so let's talk a little bit about why you're rolling out these savings bonds and specifically to young adults in your state. i mean, i think back to when we spoke in december, and at the time west virginia was leading in terms of vaccine distribution why the slowdown and why do you think savings bonds specifically will be the thing that incentivizes people to go out and get shots in their arms? >> first and foremost, let me just say this -- we all know west virginia leaded way, got out of the gates really fast and we absolutely got our people vaccinated and absolutely saved a lot, a lot of lives we

the people that are 65 years of age and older, but at some point in time, all states will hit a wall, and that's where we're at right now. we got all those vaccinated that were wanting to come and we got out really quickly and everything, and now what we've got to do get across any mountain, always steepest at the very top what we know now is we know our young people have a real relurelux a relurelux re relu reluctancy andy of the day right now, the population is still out there saying, well, i'd take it, but it's a little inconvenient, or the population of young people from 16 to 35 years of age that think they're invincible, we've got to penetrate that. that's why we're doing this. it's not a silver bullet you know

but to give a dose of patriotism to our young people and that's why we've tried to do it with the savings bonds, but we're trying to do something that is just novel it's a new marketing approach and everything it's working, but i don't think it will be a silver bullet you know, we'll continue to have to do anything and everything we can to where we get our people vaccinate pd and we're looking to get 70% of our total population vaccinated. >> how will you get the bonds to people what's the distribution network going to look like >> well, that's -- we're going to give them the shots and we're going to have the addresses, have to mail that to them and you know, it may very well be we pivot and got to go with a, a beautiful silver dollar and a $100 gift card or whatever some way, somehow, we're trying to tie it to some level of patriotism, because they are really stepping up young people are probably not going to get real sick but they are stepping up, and because they're tremendous transmitters

of this, and by stepping up they're going to stave a lot of lives, too. >> gift cards could become a -- you know, i wonder what your thoughts are for the country as a whole given, as you said, you were ahead on getting the vaccine out to those most vulnerable are you concerned some of the trends you're seeing nationwide? it's not like people can't travel state to state as well? >> this is carl, correct >> no. david fab er. >> forgive me, david i'm sorry. we should really be concerned as a nation i mean, if you look at what's going on all across the globe and god forbid us to get in any situation like india, but we have a real jump-start in getting our people vaccinated, but i don't know why in the world all of our people can't understand just one thing and one thing as simple as just this vaccinations are saving an incredible amount of lives, and absolutely all of us stepping

up, we need to do that, and so, david, you know, i am absolutely concerned. i'm concerned that the whiplash of a variant or whatever it may be, but right now while we've got a real opportunity across this nation, we need to be stepping up, because this is our duty absolutely a duty to be vaccinated >> hmm so where do you fall in the vaccine passport debate then seeing a number of governors, particularly republican governors, florida, texas, arizona, utah. arkansas i think over the weekend as well, coming out basically banning these so-called passports. how do you see it? >> well, you know, like i said we've got real issues globally do we not? and from the standpoint of, you know -- and i'm not hearing really well, you know, when you guys are transmitting back to me, but from the standpoint of whether it be republican or democrat governors, one thing we absolutely need to know is just

that, that if we want to go back to normalcy, and be able to open up and get rid of these masks and get rid of all of this stuff, which i want to do more than anything in the world, but if we want to get there, our ticket is one thing. that bridge to a vaccine, we've got a vaccine right now and we needs to be on it. >> all right governor jim justice thanks forjoining us today good luck. >> thank you thank you so much. thank you, now. all right, david a look at the markets for this first trading day of may before we wrap it up here it's largely green although coming off the highs of the morning. s&p 41 98 nasdaq turning short. >> earnings from last week, of course, apple shares barely up amazon, which did not perform particularly well given what many said was a blowout quarter, and an expectation perhaps while that will continue is down yet

again, morgan. your point on obviously nasdaq an important one at this point down .13 not a huge decline but trailing the overall market only 8% gain so far this year. >> another busy week of earnings 25% of the s&p reporting and that key jobs report friday. it will keep us busy that does it for "squawk on the street" today, though. "techcheck" starts right now. ♪ good monday morning, and welcome to "techcheck. i'm deirdre bosa with carl quintanilla and julia boorstin jon has the morning off. today epic faces off with apple in the courtroom how this case could change apple and the way that we use our smartphones forever. then, buffett talk