we'll take a look at the stocks poised to benefit. benefit further in this case. pfizer is set to report this hour the fda expected to approve the use of the covid vaccine for kids as young as 12 and up from there. that could be as soon as next week. a big tech breakup bill and melinda gates are splitting up after 27 years of marriage it is tuesday, may 4th "squawk box" begins right now. ♪ ♪ good morning welcome to "squawk box" here on cnbc i'm becky quick along with carry-on joe kernen and andrew ross sorkin.

the s&p posted slight gains yesterday. the big gainers were the retail stocks dillard's, macy's and the gap and kohl's up 5% that is after the plans to lift covid restrictions we will have more on the story in a moment. check it out dillard's up by 10%. if you look at the equity futures this morning the dow is indicated up by under 20 points right now. a gain of 20 points. s&p and nasdaq are pulling back. s&p down 2 points. nasdaq off by 33 we should look at treasury yields there was talk about inflation yesterday. that is starting to creep in a little bit at the 10-year. right now at 1.623%. that inflation story playing out in other places. we should look at the "squawk stack. that is one story we're telling.

copper prices and lumber prices sky rocketing. lumber hitting highs yesterday again. sitting this morning unchanged copper at the highest level since february of 2011 transports and materials and industrials on board because they set record highs yesterday. also looking at ethereum this morning. this morning up by 1.5%. andrew thanks, becky. more states have announced plans to reopen as covid cases decline. on may 19th, new york, new jersey and connecticut will reopen and requiring social d distancing and masks. the opening will be subject to six feet of distance between groups that can be relaxed for restaurants if physical barriers are in place no more capacity limits on

outdoor gatherings subways will return to 24-hour cer service on may 17th. new york and new jersey accelerated steps to reopen on friday to allow school proms and schools. connecticut became the first state to have 50% of adults fully vaccinated according to "the wall street journal." progress, progress, progress slowly being made. maybe it is pretty rapid joe. look at texas and florida. becky, i would have added one. it is an anthem to you and many on the stack especially with elon musk coming up on "saturday night live." >> tesla >> dogecoin. get along little doggy you want to know where it is >> yes. >> $49 billion

you know what it is worth today? 63 >> up 18%. 48 cents >> a -- i'm seeing articles saying it is the perfect currency for the world i don't know i thought it was a joke with the fu funny dog. >> i thought it was a joke, too. >> tough to be a joke at 63. i just thought about that. i put it on my watch list. remember, it was supposed to be $1 by may because of slim jim meme got a dog logo a buck by pot day. i can't believe we're talking about that >> the perfect currency. it is not a currency it is not a currency you don't use things like this to pay for transactions.

it is not steady enough. it is something people are speculating on it is not steady enough to call it a currency. i'm not sure why we do that. >> i'm not sure what will happen to it. >> i don't know. >> we start talk about it at $1 by 4/20. we have, as we said, elon musk he'll be on "saturday night live." >> he will be on you should see the back and forth. he seems to be dragged online regularly not just by spectators, if you will, but some of the actual actors on the show yes. >> i did see it. i saw a tweet with his suggested funny scenes i think he is a funny guy. i saw one that was funny a skit with a woke james bond. if there is anyone who wasn't --

james bond can't do anything anymore. he ha has to go hide somewhere. think about james bond everything bad about people he p epitomized in terms of everything. >> there is another james bond film coming. mgm spent a fortune with the film they have been holding back throughout the pandemic. i don't know what craig does in that case. >> he has been tamed over the years. this is not the 1960s bond >> my son said snow white yesterday. he said no, the prince is not allowed to kiss her when she's sleeping that's a joke. you read that on "the onion. i think it is true i saw it on the news it must be true. he is stealing an unauthorized

kiss from the sleeping person. >> is that true? i have to look that up i know which network you watch i have to find out about that one s one. >> i look for you for everything woke, my friend. you could make that mistake and show it to your kids next thing you know -- check it out. maybe it was an onion thing. i'm not sure it was. >> the best thing i saw online suggesting a battle between bezos and musk as a potential skit for "saturday night live" with the battles over space. >> that might be good. andrew, when you think that can't be true and it turned out to be true, if it is -- >> you have to remember life is relative. >> the world is too woke if you think that is crazy. >> wokeness is all relative.

the wokeness >> did you find out whether it is true? if you say that can't be true, then i know they've gone too far. >> i'm reading an article from "the new york post." i need to do additional work, if you will. >> that's definitely not true. who knows what knows what murdon to do. a and fda is trying to approve the pfizer vaccine for kids 12 years and older by the next school year. if there is another school year. emergency approval for younger children is expected some time this fall. quarterly numbers for pfizer are expected later this hour we will bring them to you. becky. this is good news. this is the news i have been waiting for.

yay. we have other news to tell you about. i'm sure you heard bill and melinda gates announced they will split up after 27 years of marriage. they will keep working on foundation efforts in the statement, they said in part, we no longer believe we can grow together as a couple in the next phase of our lives. we ask for space and privacy for our family as we begin to navigate this new life bill gates stepped down from microsoft's board last year and started spending more time on the foundation he owns 1.37% of microsoft's outstanding shares which is worth more than $26 billion. he is the fourth richest person in the world behind jeff bezos couple were creators along with warren buffett of the giving pledge requires participants to give away more than half of their wealth this is focused on the world of

philanthropy good to hear they are working together, but people have questions of what happens next and the focus of the foundation will be and how it will work >> you got toandrew, if that is true or not can't they say can we keep this personal they can't there is money involved. is it 1 out of 2 with divorce? the children are grown it is between bill and melinda i think you say it is personal there is no way it is personal because of the money involved. that's the story. >> joe, it is more than that, though >> why >> it's a very sad day >> why is it sad for the family? i knew you would say it is sad

it is between two adult ws who have grown apart why do you feel it is sad? >> because i know both of them >> i thought we would go there. you said i'm not taking either side >> joe, all i'm saying to you -- i can't believe we're having this congrversation. i was talking as a reporter trying to contextualize. this is why i would say this is a relevancy beyond the money, joe. hang on for half a second, please a couple of things this unfortunately has been a marriage that has been, i hate to say it, on the rocks for some time a lot of struggles inside this family

it doesn't matter how much money you have in certain cases. in all cases, relationships and families are families. one point that would make it interesting to you last year, you might remember that bill gates stepped down from the boards of microsoft and stepped down from the boards of berkshire. both publicly traded companies we talk about that on air all the time it has big impacts on companies. one of the reasons he did that was in part because of the relationship and some of the challenges that were happening in the family as they were trying to keep this marriage together you ask why these things are relevant to our audience and particularly and personally -- >> i think they deserve privacy. half of marriages break up i'm not taking any satisfaction. it is unfortunate when a 27-year

love affair ends there are things we don't know about personally in addition to what you're saying. >> i don't need to fight with you about this topic >> i knew you would say it is sad. it is sad when anyone breaks up. sad 50% of the time. >> sure. >> you are sad a lot >> that i'm sad a lot, joe the other point that i think is worth reflecting on and it is the peiece that becky picked up and raising is the question of what happens to the philanthropy a lot of the work that bill and melinda do is outside of the foundation all of the climate work we talk about on this program and all of the alzheimer's work that bill does on his side of things, is done outside of the foundation how will that money get funneled in the future? will it get funneled into the foundation or outside of the foundation melinda has ventures that she

has been working on programs for mothers and families throughout the world. again, that's a separate issue yes, but the point is it's about the future of the foundation which had a huge impact on policy in the united states and around the world >> the first thing i said is the family -- i said that. on a personal level. >> you are getting vicious. >> all those things are interesting, but on a personal basis, give them their space if they decide they are no longer want to go forward in life together, that's their prerogative. that's what i'm saying it is nice you are sad i just -- >> okay. >> they are a high profile company. for philanthropy and all of those issues it means a lot to the viewers. divorce happens all the time

it is unfortunate. unfortunate it happens a lot people grow apart. >> okay. coming up, we will talk strategy our next dpguest says it is tims like these that is great to trade the market and the latest all declining sharply. "squawk box" will be right back. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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futures right now indicating a positive open. we've been in the red for part of the morning they have turned positive. our next guest says there is an abundance of extremes in the markets right now. joining us more is james mcdonald founder of hercules investments. james, with what we have seen recently with things being so good and positive. if youbelieve we're at an extreme, i would think the opportunity would be to fade the extreme or go the opposite way of the extreme would you characterize yourself as bearish because we're so over heated is that where the opportunity

is >> absolutely. good morning, joe. i was sad to see the debate. what we like about the market is we have seen moves in the indices, the dow, s&p or russell, which has never happened before in modern times. you have to go back 88 years to see a rally like this. that tells us normalization is imm imminent that means a correction. we have not seen a correction in the s&p. we did get that in the nasdaq. there was a rebound. we got it in the russell we have not seen it in the s&p to the earlier point, this is not your father's s&p. the tech companies have been bullying the s&p for a couple of years now. they are at 52-week highs and we think there is an imminent pullback to the comments of lumber and other commodities, we are

overheated to where it is not sustainable. the bearish market is about to pay off. i'm excited about seeing this. >> it hasn't happened yet. you think we're getting close. >> either that or a 45% s&p for a one-year calendar year that's never happened before at as we head into the next quarter, much of that was priced in we saw that with records in january and december we are exceeding those we're 24% higher prior to the peak of the pandemic without backing it up. we know fundamentals matter less in the market because of the concentration as well as the overall crypto or stocks or whether it is in speculative investments. it is not as much as it is going to come down crashing, but we

need to see a pause and normalization would mean a huge upside for us. >> james, with something like amazon or pick a company that fared well during the pandemic and compare that to the nft. is there a correlation there or can some of these big winners actually justified by the fundamentals trading at this level or does the fluff in one area translator mean that some other areas are also vulnerable as well? >> well, what we see is a divergence some things are justified. if you you have a company like apple or dpgoogle or microsoft making money hand over fist and expanding and increasing margins, you will see the increase if you have zoom or netflix which run ahead of the earnings

and success, there has to be a pause and pullback there even tesla we had so many conversations of tesla valuation being credible and growth justified that somewhat now tesla's negative year-to-date because that was priced into the run-up the companies with huge profits and now the potential will be realized in the price valuation as the run-up. >> thank you, james. we'll see. bearish for a while. now is the time. we'll write that down and have you back and see what comes to pass. >> thanks, joe >> thanks. andrew okay coming up, how corporate boards tackle the toughest issues of the day with the social issues and pandemic challenges from activists. we'll break it down when

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welcome back to "squawk box. time for the executive edge. the changing role of corporate boards which needs to meet the

challenge of climate change and gender inequality. we have a veteran board member at chevron and 3m with a new book out today called "how boards work. it is great to see you as we mentioned, the role of boards changed substantially it feels almost as if boards and corporations around the world are having to contend with, frankly, social issues that historically companies did not want to touch or didn't think they needed to touch there is a game of whack-a-mole played every day i wonder how you think as a board you should think of framework around these issues. >> thank you, andrew the reality is corporations, not just large global corporations, but all corporations in the private sector have been key part of the global economy through job creation or tax base

or infrastructure and innovation you are absolutely right in the last decade or so, there has been a push, obviously, in 2019 with the business roundtable statement saying corporations are saying they are put in a responsibility beyond the purview of global corporations the reality is i don't think corporations are shying away from it at all what is important is for people to understand there are tradeoffs associated with the esg approach it is critically urgent, but important to have the issues on our heads as we move forward. >> i have a question for you since you have been on a lot of boards and have written this book and now how clubby the boards are shared in part by warren buffett and others who talk about the

clubby nature and once you get on and you don't want to get off. the incentives are more aligned than misaligned. not because of the stock doled out, but people want the jobs and are they really going to hold a ceo or management's feet to the fire? >> air indrew, in the ten years served on boards, it has been transparent and brutal they have review processes that are overseen by outside organizations that review us, but we also do 360 reviews of directors. directors need not because of tenure, but performance issues i'm sensitive to the fact it was clubby and i serve on the large global organizations and that should tell you it is not clubby i'm an unconventional board

member i didn't come from the suite i joined my first board at 39. those trends are getting embedded in how corporations and boards are seeing themselves going forward. >> in terms of what the actual role is today, how much time do you think a public company board member spends in a given year? >> obviously, it depends on what is going on. i remember being on the board of barclays bank and we had 54 meetings which is one a week we emerged from a financial crisis and a lot of issues regulatory that we needed to address. last year, and ongoing with the global pandemic, board members are required to provide the oversight in rapidly changing environments i think the notion that it sort

of set in stone and don't call us, we're call you is not the way to operate things happen and it did lots of movement with automation and in the pandemic and health care questions. we have to step up >> what do you make of the incentives often times you hear from people in the business world saying a public company board is different from private company board. when a private company is there, everybody on the board is perfectly aligned because it is the owners of the company that got a plan and this is what is happening. public company board, it is about fiduciary duty and it is all a cya game >> i had the privilege of serving on publicly traded and private companies over the ten years i served on corporate boards there are a lot of similarities. ultimately, we're custodians of the businesses and we don't want

them to go arwy. if you have short-term visions, then you have to deal with it. the reality is in terms of alignment, there are regulatory assets with overseas strategy and hiring and requiring tof hiring the ceo now the goal of the corporation is we want it a growing concern. i think that idea is misplaced >> the book is called "how boards work. we appreciate seeing you this morning. hope to see you in person. it has been a while. congratulations on the book. >> thank you >> thank you becky. fr quickly, let's look at cvs i'm still trying to get the earnings expectation i will tell you quickly that

earnings came in at adjusted level of $2.04 the revenue came in up 3.5% to $69.1 billion. full-year adjusted earnings is 756. still struggling with some of the comps. i'll give you the numbers when we come back the stock is up just over 2% >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. elp. 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...

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welcome back as we mentioned before the break, cvs health out with earnings the numbers are better than anticipated. earning of $2.04 a share on basis. revenue number is better than anticipated. $69.1 billion. the company raised guidance at 7656 to 768.

the street guidance was 759. that was the highest end of guidance the street expectation is below the guidance that is why the stock is up 2.6% this morning. job growth is coming back in a big way. according to paychex small business employment growth is back to pre-pandemic levels leisure and hospitality among the top industries joining us is marty busey. paychex ceo. that is a huge jump for april. >> becky, good morning you are seeing the compare over last year. a big hit last year. also a very big increase march-to-april we saw that as you mentioned leisure and hospitality as restaurants open up and other hospitality venues open. a big increase in not only in

the jobs, but seeing wages pick up you probably noticed it is difficult to find employees right now and get them back into the workplace. especially in the jobs you are seeing wages wick up a bit in the leisure space to encourage people to come back. schools are not open and it is difficult to get people back in those jobs as they open up >> schools are not open full-time. schools are open, but maybe not on an every day basis. it is not on a full-time basis that may be something we don't see a return to until next fall sdpfall >> right that will be challenging until the fall you are seeing a lot of part-time pick up and temporary help pick up right now we are seeing that really accelerate as we would expect as we are seeing the jobs come back still a way to go.

a very nice strength across the country. this is across pretty much every state. south still leads the pack as far as job growth and construction and leisure and hospit hospitality and all servicesi supporting that growth. >> you said this is every region, particularly in the south which is strong. i had this idea in my head that a lot of places in the south hadn't shutdown like the northeast or california shutdown is that a false narrative or what does this tell you about the small business activity in texas and beyond >> no, you are right it did not shutdown as much. construction was very strong in the southern states. texas, florida, georgia. right through co'cconstruction s been strong and the secretor fo job growth it is strong and the biggest jump is the northeast where things shutdown earlier and now

getting growth back. in the west, we are seeing that, but the south is the strongest growth across the region you are seeing lower wages in the south. that has been the highest job growth, but lowest wages they have fewer minimum wage increases in the south than northeast or california or the west >> marty, are these new businesses or are these existing businesses that struggled and tried to make it through small businesses don't have the deep pockets that some big businesses do. what happened? >> it is a combination this index is on the same store basis. you are seeing companies, small companies, under 50 employees, that were in place a year ago and now. you are seeing the job growth in the existing businesses. new businesses, new business start-ups are up 70% from last year a big jump in new businesses a lot of that is people

displaced who lost jobs and decided to go into other things and changed their employment going forward. it is a positive looking forward. the other thing is there is stimulus dollars on the table and available through the end of the month. $20 billion in ppe loans as the restaurant grants that were opened up yesterday and going through the end of the month there is a lot of money on the table and employee retention tax credits that mean a lot for small businesses to help them through. >> thanks for the good news. good to see you, marty. >> you, too. thanks, becky. coming up, pfizer set to report we'll bring you the numbers and reaction straight ahead. later, we talk to union square danny meyer you can watch or listen to us live on the cnbc app any time. stay with us

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pfizer is out reporting. meg tirrell has the numbers. good morning, meg. >> reporter: good morning, joe a huge beat for pfizer coming in at 93 cents. compared with averages estimates of 77 cents.

revenue is $14.5 billion for the quarter. analysts were looking for $14.51 billion. a lot on the vaccine which brought in $3.47 billion in revenue. analysts were looking for 3$3.3 bil billion. the company raising guidance for adjusted eps now seeing $3.55 that is up from 3.10 to 3.20 per share. that is up from $59.4 billion. now they are seeing for the covid vaccine revenue of $26 billion because of 1.6 billion doses they have signed contracts for. that is up from $15 billion they signed from the vaccine. even without the vaccine, they raised guidance for the year by $200 million guys, going through the slide presentation which is up right

now. the company does seem to be saying by the end of may, they plan to be submitting their application for full approval of the covid-19 vaccine in the united states. you are seeing pfizer up 1% on the gigantic beat here a lot driven by the vaccine. guys >> a lot of news every day about all these issues meg, i look forward to having time next time we have stefan or albert bourla on i know that is today it just seems now you that for years we knew that you could do gene expression with the mess mess mess messe messenger rna. it has worked on millions of people for the vaccine i want to know what's next

it seems like a lot of really chronic, horrific diseases could be addressed with this you know, i just like to know. instead of talking about covid and vaccines, i want to talk about that can we do that some day? >> reporter: i would love to, joe. we will hear about it from pfizer today from the call we know they are working on flu. that is still a vaccine with mrna we will hear about other applications as well >> not just vaccines, but therapeutics where you can deliver or get the body to make the gene product that it is lacking that could help in so many diseases. there's a lot of potential we could be on the cusp of a whole new way of treating things and dealing with things. thanks, meg. stock not reacting too much right now. andrew okay coming up when we return, auto

sales market is booming. phil lebeau has numbers when we come back. check this out british royal marines checking out the futuristic way to board boats using jet suits to fly over water to navigate from ship-to-ship the only other way to land marines on boats is by helicopter the technology was tested by british paramedics in reaching remote areas in the wild makes you look like a superhero. we're back after this. ion beat . how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.

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the auto sales rate for april topping 18 million vehicles for the second straight month. this is the first time since mid 2005 with back-to-back months above that level i remember that level. fill lebeau joins us now it was one that mike jackson used to talk about it was always 17 or 18 those are the best we've done,

right? >> oh, yeah. yeah what we saw in april, joe, fourth best month since the year 2000 we've only had 9 months over 18 million as a sales rate and two have been back to back march at 18.0, and this at 18.54 million. this included record sales from toyota, honda, hyundai the average price paid for somebody going into a dealership, $37,572. almost a record high within maybe $100 of that this now sets up the deal for total auto sales to come in at a pace of 17.4 million vehicles. let's put that into some perspective with how that compares with recent years by the way, a lot of people are now saying we don't have the supply to make it all the way through the end of the year at 17.4 the automakers would have to continue to ramp up production

given the chip shortage, that's unlikely to happen the dealer inventory stands at 35 to 38 day supply. if it's a normal industry it should be between 65 and 70 days that means when these cars are loaded on the carriers and driven into dealerships, most are either pre-sold, very few going out on the lot where you can walk around and say, i'm interested in that ticar, suv, mow most are sold. what kind of choice do i have on that model let's take a look at ford. ford will be reporting april auto sales a little bit earlier this morning ford has had strong sales for full size pickups and suvs the bronco has been red hot. take a look at general motors. we'll get gm's q1 results

tomorrow morning the big focus there is going to be obviously the chip shortage but also what they're saying as they transition towards electric vehicle production a little bit later on this year, back to zero in detroit and going into 2022 you do not want to miss the first on cnbc interview with mary barra we will talk with her at 8:35, shortly after the results come out. lots to talk with mary about not only the chip shortage but this transition into evs guys, it was maybe six months ago people said, boy, gm is set up we've got the transition to evs and we'll have red hot demand for trucks and suvs. things should be good. chip shortage has thrown a wrench into that plan. now the question is can they meet the demand that is out there because supply is constrained now. >> good job, phil. can i ask you a question, do you feel that you need to stay up saturday nights and watch

"saturday night live"? i think that's part of your beat, don't you think? with elon musk being on it that's almost like homework for you. >> sure. >> no, i don't know if i would call it homework i will watch it. who won't watch it the question is, does it turn out to be entertaining or does it turn out to be a train wreck? there are plenty of people who will sit there saying, he's not an entertainer like at the same time you say in advance this is going to be terrible and you go, that was pretty good. >> there could be something that comes out, something that he says that's actually pertinent and that we see reflected on monday, whether it's crypto, tesla, who knows >> true. >> i was just wondering because it's your beat you are -- set your alarm. you might still be up. you might still be up. >> no, i think i'm still up. >> you know what day it's on,

saturday "saturday night live." hence the name so it's saturday thank you, phil. becky? >> he may not be an entertainer but he's a pretty good dancer. when we come back, pimco's libby cantrill will break down what president biden's plans could mean for your money. plus, we'll begin with the impact on the bottom line. pence chief of start marc short and donna edwards square off you're watching "squawk box" and this is bccn

investors piling into reopening stocks to kick off the month of may this morning the futures are mixed. we'll get you caught up on what you need to watch in today's trading session. bill and melinda gates splitting up after 27 years leaving questions about the fate of their vast wealth and charitable foundation. the details are coming up. and sotheby's pushing further into the crypto craze teaming up with coinbase to talk

about arlt the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box. i'm andrew ross sorkin u.s. equity futures, let's show you where things stand a flood of earnings coming in we'll tell you about in a second the dow will open up 17, 18 points higher. nasdaq off 46 points the s&p 500 looking to open down about 3.5 points right about now. joe? something else is making headlines. you mentioned earnings, andrew pfizer is out. drug maker, 93 cents a share 16 cents above estimates additionally "the new york times" says the fda is poised to approve the use of the pfizer

biontech covid-19 vaccine for adolescents age 12 to 15 earnings just out from under armor, the athletic apparel maker earned an adjusted 16 cents a share. the con census was 3 cents revenue was above expectations and forecast the company raised the if you recall year outlook. ceo patrick frisk will join cnbc at 3 p.m 18.5 million vehicles in april according to auto dealer talking with phil lebeau about that that's the second consecutive mark over the 18 million level that is the first time that has happened since mid 2005. meantime, we have some sad news to share this morning bill and linda gates are divorcing after 27 years of marriage 2 leaves a lot of questions about the fate of their vast wealth, their foundation, their

philanthropy robert frank joins us this morning. robert. >> reporter: good morning, andrew microsoft shares stable right now in pre-market trading. that's because bill gates only owns around 1.4% of the company. around 26 billion of his $130 billion fortune. as you mentioned, the bigger impact will likely be around cascade investment that is the family wealth company. and the bill and melinda gates portion. the divorce petition says they will divide according to a separation agreement which remains confidential cascade's more than $75 billion in holdings include big positions in a lot of publicly traded stock including canadian national, deere, autonation and republic services. cascade is the largest farm landowner with 250,000 acres

bill co-owns the four seasons hotel chain. the gates foundation is the largest foundation in the world. it has a $50 billion endowment he gives away $5 billion a year. it is no longer a marital asset so it is not subject to division but control could become a big issue. the gates's saying in a statement they will continue to work together at the foundation but not for profit experts saying it may be difficult for them to agree on how to distribute those funds, what causes to support, who is in charge and how to invest that, of course, could have big impacts on health care, education, environmental policy and lots of governments around the world, companies around the world, not for profits around the world watching this closely to see how it plays out. andrew >> robert, you know, i think there's lots of questions. obviously this hit like an earthquake in so many ways in the world of philanthropy and public policy given the role

bill and linda gates play in that but in terms of the money that still has to be spent, you know, there's two issues one is what's going to get spent and how's it going to get spent and the control issue you talked about. there's so much more money i'm he not sure people appreciate this. even though the gates's have said they would give all of their money away, most has not gone to the foundation yet at all. therefore, i think there's a different question as to not just continued funding first of all, there's years and years and years that it will take to spend the money that they have. there's also warren buffett's money that's going to continue to go into that fund one of the reasons that the gates's have said they haven't been giving more to that fund in part is because they're getting that money from warren and that it's hard to give away money so the separate question to me bams do they start using some of their own funds for other proj snekts as you know, we've talked about bill is obviously very

involved in climate and also in alzheimer's. those shall iruse that are completely -- that have always been done outside of the foundation pivotal ventures which is melinda's group, focusing on family and mothers has existed that has all the business interests. we haven't talked about gates ventures which is his venture capital arm and how that plays out. but, you know, when you look at other i hate to say divorces because every divorce is a family affair and as i was saying in the last hour, a ter terribly sad affair no matter how much money you have. the question is what do you think the long-term implications are. bezos has become it's sort of changed giving do you think this is going to change giving? >> yeah, you raise a really important point. yes, you have the $50 billion endowment at gates foundation, but of that $130 billion that is -- that we attribute to bill

gates's fortune, he and melinda have pledged to give away 95% of that the question is what happens to the $120 billion that is not yet distributed to the foundation that is pledged to philanthropy over time? and each of them are dedicated philanthropists. we know, as becky mentioned, this is their life work for both of them, but they're individuals and they each have causes that are more important to them personally when you look at both the 50 billion and 1920 yet to be distributed plus warren buffett's money which we don't know sort of how that's going to be affected, it remains to be seen where this goes, how it's distributed, to what causes and will there be sort of split off charities, split oven tur capital and split off investment arms and where this all ends up? this is the fourth largest fortune in the world 95% pledged to fphilanthropy and

now questions where they go. the good news is, it will go to philanthropy that has been pledged and for both of them it is their number one priority >> robert, thank you appreciate it. becky? >> thanks, andrew. still to come this morning, steve kunin nyu professor. he'll join us to talk about corporate america's carbon foot print and the impact of business cvs health shares are higher than expected and revenue for the quarter. that stock is up by 2.8% "squawk box" will be right back. (it's a skirt... and shorts) the world is going hybrid. so, why not your cloud?

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u.s. corporations are spending billions to reduce their so-called carbon footprints president biden's infrastructure plan is loaded with subsidies for green industries in fact, if a new green deal passes billions it will be trillions. our next guest questions the conventional wisdom on climate science and business and u.s. economy. steven koonin served as the chief scientist in the obama

energy department. currently a professor at nyu and the author of "unsettled." is this a relatively new viewpoint that you have, doctor? because you spearheaded the obama administration's efforts here i guess you have had an awakening or re-examination of some of the science? >> yeah. joe, you know, about seven years ago i had the opportunity to look more deeply into the science and in the intervening seven years i've come to believe that the science does not say what you think it says to borrow a line from "the princess bride. everything that i've written in this book comes almost directly from the official u.n. and u.s. government assessment reports. so this is not steve talking really but it is the consensus science. it's just that these points, and many others, have not been

brought ford into the public or political discussion >> what other key points in your view i don't think you dispute that man has been involved with some recent warming, men and women have been involved with recent warming, but your basic premise is that trying to change the future of climate or of carbon dioxide levels is a futile pursuit and therefore this is wasted money that you're seeing with government and private companies or public companies? >> well, humans are certainly influencing the climate and human influences are growing as carbon dioxide in the atmosphere grows, but beyond the warming of about 2 degrees fahrenheit over the last century, we don't see many impacts on severe weather events for example, heat waves are more uncommon today than they were in

1900 and they haven't gone up in 60 years we have no detectible human influences on hurricanes and global wildfires have declined about 25% since 2003 despite the terrible fires we saw in california and australia in 2020 2020 was one of the least active global fire years on record. and so, you know, we -- the notion that we've broken the climate is misplaced >> doctor, we also want to talk about this and the impact on business and the impact on the economy. we are now deciding to transition, that it's both the private sector and the public sector's job or responsibility to transition away from hydrocarbons because of this

will there be a negative unnecessary effect on gdp corporations if they pursue this when it's not really necessary >> the transition that the administration is proposing, which amounts to a drastic reorientation of our energy system and society in the time scale of about 15 years. energy pervades everything we need to change it slowly to ensure the disruptions are not significant. you change the energy system by or orthodonture versus by tooth extraction if we want to reduce it, we need to do it in a more thoughtful way and pace than is being proposed we need to get the rest of the world to come along if it's going to have any impact at all. if the u.s. were to go to zero today it would still be only a 15% reduction in global emission and we need to go to zero people

say sometime in the latter part of this century. so the developing world is growing and as kerry and the president has said, unless the rest of the world comes along, u.s. efforts are futile. >> i guess the consensus, you said there haven't been more hurricanes, there is certainly a perception, i don't think these companies would be acting if they weren't under the impression that, as you say, climate is broken. are they wrong >> the climate information starts from the basic research papers it gets summarized in the assessment reports that the u.s. and u.n. produce there are summaries and eventually it gets to media and the public and the decision makers and there's a long chain of information there for which there are ample opportunities for misinformation and mischief.

hardly anybody reads the real reports and what i've done is take the information right out of the reports and make it accessible to non-experts. there are ample referenceness there. people can check what i say and if they find that what i'm saying is true, as i hope they will, they might be asking what else haven't we been told about the climate? that might lead to a really interesting set of discussions. >> at this point, it's good to have you on the show are you finding it easy to get -- to make appearances for the book i can't imagine you're looked at very fondly with your former colleagues that were in the obama administration i saw you mention you're glad your daughter has a different last name. these are strange things if we're just talking about science. it seems almost more like a belief system. you're glad your daughter has a different last name? >> my daughter just had our

first grandchild and i'm happy she's doing well and the child is doing well. you know, i believe that for a scientist it's a moral imperative to present the science in an unvarnished, factual and transparent way and that's not been happening and if i'm excoriated and scorn for doing that, then i think that says something awful about the state of our society and the way in which we can discuss matters. >> i've often said that it's hard to -- if there's an unfalse fi phiable hypothesis, if it causes warm, hot, wet, more storms, less storms, you can never refute this. if we shouldn't be going down this road as headlong as we are, what are you seeing?

the models so far wrong that we start re-evaluating this i mean, how do you see this reconciling itself if you're right? >> you know, what i would like to do is have an honest, open discussion among the scientists that is accessible to the decision makers and the public and that has not happened. and i think if we can get that in the next few years, we might be able to make wiser choices about which direction we head and how rapidly we head. >> because the infrastructure, we already know that a lot of the infrastructure is not as pressing or addressable. at this point you're talking about hundreds of billions of dollars and maybe more than that it would seem like it's important to get this right. >> correct and i think the country just needs to be better informed. i'm an educator at heart and i believe people should have the

facts and then we can make decisions. >> dr. steven koonin, thank you. good luck with the book. >> pleasure talking with you. >> andrew? tell you about a couple stocks to watch right now. bernstein upgrading boeing to market perform raising the price target to $229 analysts saying they see companies at less risk now that they control 787 deliveries. expectations have been reset and avis budget lost an adjusted 46 cents per share. smaller than the loss of 216 that had been predicted by analysts the car company's rental beat forecastor's revenue pointed to a jump in demand and more solid pricing for car rentals. more "squawk" after the break.

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if they did not get the scholarship or grant money, what should they do >> rob franick is going through the college process. it may still offer the most financial help. >> it's not because they're flush with dollars given our global pandemic times. they have to remain attractive

academically and financially. >> ask your high school counselor, use your network, friends and family their employers may offer scholarships and do an online search arizona state university sophomore jordan montano started his scholarship search after taking an online personal finance course as a high school sophomore. >> there's no way i would receive funding from my parents. financial help would have to come from elsewhere. >> reporter: a first generation student, he's received grants and scholarships for tuition and room and board. >> apply for everything. >> start looking for scholarships earlier i didn't realize how difficult it would truly be. >> more than determined than ever alexis simon has ramped up her search i've applied to 20 to 30 scholarships i'm definitely never, fr, ever

going to give up. >> some scholarship deadlines have passed but there's more aid out there for students who are looking. some funders have increased their spending and are awarding emergency grants to students hard hit by the pandemic afu student had to move to new housing during the covid crisis. he said in getting i'd found it helpful to explain his financial situation. his advice, always be as transparent as possible to potential funders. becky? >> this is really interesting information and news you can use, sharon, but you know most students have already committed to a school. does that mean that it's over for them, that it's too late for them to do anything in terms of getting more scholarship money from their chosen school >> well, certainly not over. experts say because you've shown a commitment to that school, it could actually benefit you in the follow-up conversations that you have with financial aid office regarding award money a lot of scholarship deadlines also go beyond that may 1st

decision day deadline so it's important to keep an eye out for other scholarship opportunities that may pop up in the late spring and summer. keep in contact with that financial aid office >> sharon, thank you great to see you as always >> sure. good to see you, too still to come on "squawk box," as you know, we've been debating president biden's tax proposal since it was announced. our next guest says whatever gets passed may ultimately not matter for the markets we'll talk to libby cantrill plus, sotheby's announcing a collaboration with coinbase. we'll break it down with charles stewart, sotheby's ceo charles stewart. as we head to break, let's get a quick check on futures "squawk box" will be right back.

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welcome back to "squawk box. i'm dominic chu with your market minute you saw a live shot of times square in new york city. transportation spots are key focus for many investors in trading. let's take a look at the transportation index we are at record highs for the dow jones transportation index this tracks many of those airlines, freight and logistics, railroad type companies. a record high here nearly doubling in the course of a year up 1.5%. watch the transportation stocks. index and etf could hit another high in record trading some of the earnings movers to watch. big theme, beat and raise, beat and raise. that's what's happening with cvs health, pfizer and under armour. they beat and raised their full year forecast as well. cvs health up 3%

pfizer up 1.5% and under armour up 3% in trading andrew, i know you're talking about fancy auction houses and cryptocurrency, check out the year to date performance so far in ethereum. up 363% on a year to date basis beating bitcoin. ether, 3,455 that was just hit in trading in the last 24 hours. keep an eye on ethereum. i will send things back over to you. coming up when we return, thanks, don, pimco's head of public policy, libby cantrill. raising investment income to pay for his investment plan. take a look at earnings.

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. investors seem concerned with president biden's proposals raising taxes on the wealthy to fund his proposals the major indices have been climbing ever since biden was sworn in our next guest says whatever proposals get passed will be watered down versions thanks to the reality of washington. joining us is libby cantrill let's start on that. most people we talk to say don't worry about what you're hearing from these proposals, it is not what the final solution will look like. >> that is right what is proposed and what is signed into law will look quite different. that's not to say that taxes aren't going up, because they most likely are but they're probably are going to be more benign in final form than what has been proposed. we expect the individual tax

rate to go up and we do see the corporate tax rate going up. probably not to the full 28% like president biden said. it won't be as extreme as biden proposed very unlikely to go to parity with that ordinary income tax rate for those making more than $1 million yes, we expect taxes to be going up but probably going to be more benign and more palatable in their final form >> libby, the reason you think that is not because you think the democrats are going to come to some consensus with republicans, you think this is the democrats and their own caucus they have to work through? >> yeah. becky, i think that is something that is not totally appreciated both in the senate and a lot of focus on senator joe manchin there are a lot of other

centrist democrats who are a little bit leery of raising taxes especially in what looks like a difficult election cycle. folks have to realize that democrats only lose three votes in the house and still pass legislation. there is a lot of moderate democrats in the house that are, again, going to be facing sort of uphill re-election battle i think in the final form there's going to be pressure from those caucuses to moderate what president biden has proposed then we're also still optimistic that you could get a smaller bipartisan from digs nal infrastructure bill with democrats or republicans working together that doesn't foreclose another proposal but it does push out the timing of that >> do you think that these moves will be retroactive?

that may be one of the top questions on a lot of investors' minds at this moment, is it too late if i wanted to sell stocks and worried about the capital gains rate, is it too late to do anything about it? >> yeah. no, we do not expect these to be retroactive. there are a lot of reasons why, one is from an implementation execution perspective. it's difficult to increase taxes retroactively so we think any tax changes that are passed are going to be for the next calendar year, in this case it may pass in 2021 won't be applicable to 2022 so, no, becky, it's not too late but, again, i think investors, what you're seeing in the markets, is people are sort of taking a pause and see what actually gets written into legislation. this is something i always remind our clients that of course the white house has a very important bully pulpit but they don't write legislation none of this has been proposed

so i think the market is sort of taking a breather and waiting until they actually get more details around the proposals >> libby, let's just plan this out and say you're wrong on that what happens if, a, it happens and it's exactly what the white house is pushing for right now, somehow they manage to get manchin and a few others and say they're going to do this, they don't stand up to the pressure you are talking about a very few number of votes that are going to be the swing here let's say they do make it retroactive. they did it under the chin be ton administration when they raised taxes. >> that's right. the last time we really raised takszs in 1993 they were retroactive. again, i think they -- in that process was exposing a lot of difficulties doing retroactive tax increases. again, if these are more draconian than what we expect, you're obviously going to see the market move but, becky, i think silver lining if we do see

higher taxes in something that's more similar to president biden's proposal means it's going to be coupled with more spending as well i think higher taxes are going to go along with more spending that should diffuse some of the market impact as well. >> it would probably make a big difference on where you'd be telling people to put their money to work, what sectors, what stocks, correct >> that's right. something that's a little bit more nuanced and pernicious is this international tax regime. that is something i know a lot of folks are paying close attention to, as they should because there's something called a guilty t-- gilty tax that can be pretty draconian that can have a pretty significant adverse effect and you could see that in the final

form that's a very complicated part of the tax code and you might not see a lot of resistance from members on that. that is something that you -- that could actually be close to as bad as what has been proposed but sort of too early days to say either way >> you know, the process how this gets made is often compared to watching sausages get made and that's never any fun and never all that pretty, but when you talk about the centrist democrats in the house, one of the things that many of them agree with, something they'd like to see is a return of the s.a.l.t. deductions so you could take that back above the $10,000 limit it's stuck at. if that was wrapped in the bill, can you see that being the thing that pushes the number of votes over the top in other words, a bigger bill, more spending, more debt potentially and more that needs to be taken out in taxes to find ways to pay for some of those things i mean, i could see that being the swing vote at least for a

lot of the centrist democrats in the house. >> yeah. i think that's right to zero in on the s.a.l.t. deduction. now something i think people don't realize is that that s.a.l.t. deduction is reinstated in the beginning of 2026 because that's when the individual tax cuts under the tcga, the trump tax reform actually expires. salt is coming back if congress does nothing but you're right there is a constituency that wants this accelerated especially if the top rate increases. they feel like their folks at home, wealthy donors, need some relief our expectation is you do see some sort of s.a.l.t. relief if you see the individual rate increase those things i think in a lot of members' hands are going happehand i hand

yes on s.a.l.t. relief is that the only issue democrats have no, it's not there are other issues, estate tax, there are going to be kind of pockets of push back within the democratic party you're right that s.a.l.t. is one of those getting some sort of resolution on s.a.l.t. could assuage some democratic members, particularly in the house. >> it's just such a fine margin the number of votes they need. you look at this cynically they can go around and buy the votes. we'll give you your s.a.l.t. deduction. senator manchin, some projects he wants in west virginia. you can see how they pick it off. that would be a big bill that will require higher taxes all the way around

congressmen who are up for election very soon, aren't thinking about what happened six years down the road. 2 to $2.5 trillion of spending coupled with 1 to $1.5 trillion of tax increases it's not as extreme as the president has proposed >> it's not all going to be paid for in taxes it's increasing the debt great to see you. >> thanks a lot, becky

>> thanks, beck. the dow is down. the 10 year has dropped in small moves again, basis points. kind of interesting. down below 1.6 again as the averages weaken i think the nasdaq as well so in this day and age could be anything could be covid related obviously. anything that makes you question the reopening. when it happens to both like this, normally if the 10-year goes down the nasdaq would like it unless it means something macro about the economy. so we're scouring the wires to see why all of the -- everything seems to be synchronized there the drop in yields tell you when we find out. coming up, auction house sotheby's pushing further teaming up with coinbase to

accept crypto's payment for fine art. sotheby's ceo will join us after the break to discuss that. as we head to the break, check out shares of pfizer out with quarterly numbers earning 93 cents a share, 16 cents above estimates. squawk pod is a webby nominee. >> in the long run what's in our enlightened economic self-interests they feel like we're par tis spants in our economy. >> vote for the webby people's voice award. go to cnbc.com/votesquawkpod and make your voice heard. at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions.

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welcome back to "squawk box. cryptocurrency, ether hitting all time high. it's peared some of those gains. sotheby's is scheduling an historic auction they will accept cryptocurrency by coinbase. love is in the air this is according to sotheby's it's the first time coinbase and ether will be accepted charles stewart is joining us, the ceo of sotheby's good morning to you, charlie it's a fascinating thing to be

doing. what's so fascinating in this instance is thus far we've thought of coinbase less of a currency exchange so much as an exchange for people to buy and sell the stuff, not necessarily buying art and using it for other products how did this come about? >> well, as you said, andrew, this is the first time cryptocurrency will be accepted as payment for physical artwork. we're really excited to make this happen. it's something we've been thinking about for quite some time as you may recall, we had our first nft sale a few weeks back. we had over 3,000 bidders, participants in that sales series so it made us really think that we need to take this next step and begin to explore accepting crypto as payment for physical art as well. >> in terms of how you're going to do it, are you planning to keep that crypto on your books or are you planning to immediately transfer it into

dollars? >> well, we have an agreement with the owner of the painting, the consigner of the painting so that will ultimately -- that will ultimately be up to them, but this is part of the partnership with coinbase gives us not only the ability to process the payment but actually, you know, that possibility as well. >> but you can pay in cash if you like or no >> you can pay in cash, and that's -- banksy, which hopefully you can see behind me, it's called love is in the air, we estimated 3 to $5 million banksy has been, as you might well aware, a very popular artist at auction. there's a lot of interest in his work paying with physical money. what a better way to open up this payment. >> in particular we've seen nfts

go for remarkable amounts of money. i saw an edward snowden piece go for $5 million today it will be probably more given where ethereum is. >> as i said in our inaugural nft sale, we had over 3,000 buyers in that three-day auction series so we're definitely seeing a large and -- largely new audience from a sotheby's perspective. we'll see to what extent that crosses into physical artwork as well i definitely think we will expand the audience by doing this and it's something that we'll explore going forward, although of course we're very curious to see how this first step in that direction goes. >> right charlie, you know, if you go online and spend some time with these reddit boards, there are people when they talk about spending ether or spending bitcoin on this, there's a bit of a conversation almost as if they have play money and they'll

use play money in part to buy real items or buy nfts depending where you stand or sit may be considered real items. is that a positive or discipline in the art market or what does it say about where we are? >> i'm not sure if i view it as a -- you know, if i would characterize it as necessarily a positive or negative, it's just the reality. we are definitely seeing an interest on the part of cryptocurrency owners wanting to participate, them pushing into the physical world as you correctly identified and so, you know, this is the first time this has been done we'll see. it may well be the winner of this painting pays in dollars and not crypto, but i think for us creating the possibility of this is interesting because as you mention nfts, there's clearly a large audience interested in the nft aesthetic and possibility there. why wouldn't that extend to the physical art world as well

very interesting to see. >> how far along are you about nfts, if you will, for physical art? i know that may sound like an obvxymoron to some, but one thig so fascinating about nfts is the idea that the artist could participate in the art for some up side. banksy, if the art would sold in this way, could capture the lifetime value, 10%, 50, whatever it is where are you in that kind of conversation with artists? >> well, we're absolutely having all kinds of conversations there are some people who think that in addition to a physical work of art you should receive a token as well. there are some artists who are playing with the idea of you can receive either a physical work of art or a token but not both and you choose which and of course there are digital native artists thinking of it purely as nft. andrew, you and i can go to a museum, take a photo of any work of art and attempt to sell it as

an nft but that doesn't necessarily mean it will have any value. >> finally, i hate to say this, how much of the artists you're talking to in the nft space feel like this is a great opportunity for money grab meaning -- because i keep seeing artists saying you've got to go out right now, produce, produce, produce, produce because there's a moment here? >> well, i think that's particularly true for digital native artists who are at it for years and for them this is an opening up, acknowledgment of everything they've been focused on for some time i think artists who are primarily in a purely physical medium are exploring it, interested, paying attention, aren't necessarily going to jump into this. as you say, it's not necessarily about this -- you know, this moment of frenzy and focus, it's about what does this develop into over the next several years. that's what will really determine to what extent artists

adopt this medium and potential going forward. >> charlie, we will look forward to that option for the banksy. at take a picture -- >> come see it yourself. >> thank you thank you. >> thank you >> appreciate it good to see you. becky? >> thanks, andrew. when we come back, new york city is reopening. we're going to talk about the city's plans to get back to normal and what it means for the restaurant industry with union square hospitality ceo danny meyer p. and later president biden's tech proposal facing more scrutiny from senate republican leader mitch mcconnell. stay tuned, you're watching "squawk box" and this is cnbc.

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futures taking a drop down the 10-year yield is volatile and we're now pointing at lower openings across the board. new york, new jersey, connecticut moving towards normalcy after a year of pandemic fatigue restaurants and businesses in new york will be able to open without capacity restrictions in just two weeks

going to ask shake shack founder danny meyer if new york city is ready. the fda is getting ready to authorize the pfizer shot for 12 to 15-year-olds.

fine semis are a risk appetite and demand for the economy going forward has struggled. i think you have to have all of this stuff on your radar >> we get a little wobble in the market, people think it must be a big deal, guys >> so, mike, what could the

market and the slower tech trade mean for bond yields at this point when you think about the fed's stance in the near future? >> it's interesting. right now bond yields as joe was saying have not really responded in the way you might expect in the fact we have this running. maybe globally it's not synchronized and the acceleration and demand for debt is strong. the fed has told you they're looking for labor market indicators and sustained inflation. right now it probably doesn't mean much if anything. it might mean something for the market expectation of what the fed is going to be talking about and should be talking about. i think that's the game we're in for the next few months right here the market's figuring out whether they can take the fed on its word in terms of what it's really fixated on. >> okay. mike, thank you for that meantime, i'm going to send it over to becky. >> andrew, thanks. joining us right now for more on the markets and the reopening trade is barry knapp he's managing partner at

ironside's macro economics we've been talking about a lot of different head winds and tailwinds facing the market. if you're concerned about inflation, that may lead you to think one thing. if you're watching how much money is pouring in and potentially going to be there to prop up some of these stocks, federal spending that keeps coming, which side of this debatedo you take right now? how do you see things? >> i'm in the -- i hesitate to call it the flaninflation camp i'm in the reflation camp. there's a whole bunch of hyperbole to think about what's likely to happen as a consequence of higher commodity prices, higher inflation over time we had three decades of disinflation and we're moving into a period of reflation prices are going to rise jfk gets elected in the 1960s. he has a mandate for stronger

growth expansive monetary and fiscal policy prices started to rise but what that meant for equity investors in particular was earnings -- the pe of the market went from 7 to 20 by 1960. it stayed at 20 until 1967 because earnings growth accelerated from 8 in the '50s which was a very uneven decade, much like the 10s were, to 15 so that era of reflation was very favorable for equity investors not favorable for bond investors which is why we've talked about the 60/40 portfolio approach this period of moving from disinflation to reflation is fairly favorable for equity investors, at least for a time >> and by for a time, you mean years.

you're talking about years that this could really run for equities before you have to pay the piper on any of these fronts >> yes i mean, that's my broad thesis now we'll have to pay the piper on a series of occasions between now and then, in particular when we get monetary policy tightening so there's been this debate recently, a number of the strategists in some of the main line firms have talked about a 10% correction if you go back to the last cycle, the catalyst for all the corrections were monetary policy or fiscal policy tightening. sort of brings you back to the discussion you had with libby cantrill earlier this morning. when will the market price the tax hikes? for me you can go back to the tax cuts and jobs act, first year of the trump administration for guidance on that the bill was ultimately signed in early january the markets started to price at early november so we need to be, you know, roughly two months away before that whole thing takes shape and we have what i think will be

probably a 10% correction related to that. we'll get at least a 10% correction when the fed starts tapering asset purchases as well friday's number looms well but again i'm thinking after labor day before they even talk about tape perfecting. could we trade in a range for a time of course we could in part because we're reaching maximum earnings momentum, we're reaching maximum momentum in things like purchasing managers surveys. mike was talking about the market stalling out during earnings season for the last couple of weeks. that's plausible for me but to get a big setback is unlikely until we get policy tightening. >> barry, i mean, that's -- i love your long-term view, how you think this replace naryury trade is going to be a good one. you have a couple of concerns about 10% or maybe more than 10%

pull back. that would lead the average investor to think do i put my money to work or do i wait until the pull back happens if you're thinking sell in may, go away, wait to see what happens if you're waiting for a 10% pull back, is that the time to jump in the thing that would make me ner rouse is any time there's a 2 or 3% pull back there's enough money that pushes stocks higher. >> no, it's interesting. when i joined blackrock in the summer of 2014, the bond investors that i was working with were absolutely convinced that the tapering, which had begun at that point was priced into the market. i said, no, no, when we get to the end of this process we'll have one of these pull backs equity investors know when you get a pull back related to fed, the fed starting to normalize policy, that's a buying opportunity.

you're not supposed to cut risk in front of it if you are an equity investor, you should cut risk. this is when returns are strongest. you should be in those reflation beneficiaries, materials, energy, you should be riding it. when we start talking about tape perfecting, do you want to wait a little bit for that pull back to add any new money that you get? sure that's a little too tactical for most equity investors. it's the early stages of the business cycle this is when the market has its best returns you should be in the market and, you know, as i said, i think you're overweight those reflationary beneficiaries >> barry, thanks we'll see you again soon, okay >> all right thanks coming up, big announcement from new york governor andrew cuomo yesterday. the empire state is now suddenly just a couple of weeks away from restaurants reopening. we're going to ask shake shack

founder danny meyer if eeaterie are ready. under armour raised the full year outlook don't miss the interview with patrik frisk on "closing bell" later toy.da you're watching "squawk box" on cnbc i got you. ♪ all by yourself. ♪ go with us and get millions of flexible booking options. expedia. it matters who you travel with.

welcome back to "squawk box. futures down but we're at high levels as mike santoli was pointing out at this point you can see we're down 131 points now on the dow jones. the nasdaq indicated down 116. and the s&p down 23. it was all happening kind of simultaneously not huge moves but it was noteworthy 10-year dropping below 1.6 last i saw i'm thinking crypto land bitcoin down 3%. that's a significant move down as well. but also nothing that surprising with how much volatility you see. >> coming up, it has been a little tough to keep track of

all the president biden's tax proposals in the past few weeks, but in just a couple minutes we have a debate that will hopefully clarify them donna edwards and marc short shake shack founder danny meyer is going to talk to us when new york rolls back restaurant restrictions stay tuned you're watching "squawk box" on cnbc "squawk pod" is a webby nominee. >> in the long run what's in our enlightened economic self-interest is for all-americans who feel like they're participants in our economy. >> vote for the webby people's voice award. go to cnbc.com/votesquawkpod before may 6th and make your voice heard.

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welcome back to "squawk box. reopening news goldman sachs planning to bring workers back to offices starting next month the bank will tell employees to be ready to start working in offices by next june cnbc has reached out to goldman sachs. speaking of reopening plans, new york is working towards getting back andrew cuomo says new york,

new jersey, plan to offer opening. it's great to see new york city then >> i'm curious if you can walk through your capacity as a restaurateur and your role in terms of how you think businesses should get back doing what they do and is it really just the rules are off and everybody just go back to what the world looked like a year and a half ago or is there going to be a distinction >> thank you, andrew great to see you thanks for having me it's going to be an amazing comeback for new york city, no question about that. but it's also going to take a little bit of time i think there's a lot we can do to accelerate the time but

there's also some things that i think are really important in terms of people being realistic. this is not like calling back your favorite baseball team to spring training where everybody was on contract just waiting to get the call there was a big diaspora from new york city last year. a lot of talent left the city, a lot of residents left the city what we need is an incredible home homecoming i love what you reported about goldman sachs asking its team to come back to work. i think when offices fill up, when residents move back to their apartments and hotels reopen, broadway lights come back on, museums are open, new york is going to be stronger than ever. >> danny, are you going to be asking your employees -- not just asking them but requiring your employees and perhaps patrons to be vaccinated >> we have done everything we

can to encourage almost 8 hours of paid time for our employees per shot so we've really tried to lead with a carrot. we're also going to be distributing pins for our employees that let people know they've been vaccinated and for the last eight months or so we've been piloting a program along with clear called health pass where in order to come to work, each of our employees has got to get a green light from health pass, which means that at aminimum they've had their temperature taken and they've affirmed that they've had no symptoms if they choose to upload negative test results and/or vaccinations, that makes the green light come on even more quickly. >> so, danny, do you know what percentage of your employees have been vaccinated and more importantly, what percentage haven't what are you going to do about the percentage that hasn't >> just to continuously encourage them in the restaurant business every single day before lunch and/or

dinner we have a staff meeting and we talk about how powerfully you can help the rest of your team by being vaccinated we're also working this very, very minute to make sure that when new york city provides mobile vaccinations, that our restaurants are right on their stop and we will make every single effort to get every single one of our employees vaccinated look, you've read the news you've reported the news there are parts of the population that have resisted the vaccination. there's also incredible evidence that if you take a look at the cases of positive covid out there, a tiny, tiny percentage of them can be correlated with those who have been vaccinated so we're doing everything we can to lead with a carrot and to educate our staff and as far as your earlier question, i don't know exactly what percentage have been vaccinated, but we are working to get as close to 100 as we possibly can

>> but to the extent -- do you imagine a moment where you might say to people you can't come back to work unless you're vacc vaccinated we're not going to do it. >> in our office, home office we've made it very, very clear for the last three months that you are welcome to come to work if you have been vaccinated. we will mandate coming back to work beginning sometime later in the summer for all of our employees, and i'm pretty certain that vaccinations will be a big part of that. >> and what about patrons in the restaurant for indoor dining, how do you feel about that very issue? because that's -- that's been a big -- been the big question, which is to say should there be a vaccine requirement, vaccine passport i have a vaccine passport on my iphone from the state of new york with a qr code. >> yeah, which is a fantastic

technological advance. we worked with clear to host a big party, the first party we ever had at our restaurant in march since the lockdown, and we employed this exact technology so that 100% of the people who were welcomed into the restaurant had to affirm that they were completely healthy, and if not vaccinated. as a matter of fact, everybody took a test through clear on their way in and it was the best and first and most just amazing reaffirmation of life that i had seen in an entire year we had 100 people in the restaurant shaking hands, hugging, having a great time and people were wearing pins and boasting about having been vaccinated i can see that possibly being the case one thing that the governor said in his announcement yesterday was that when restaurants would move to assure that guests had been vaccinated, that's when the

plexiglass dividers could come down, that's when the 6 foot distancing at bars could come -- would move away and so we really want be to get back to being -- back in business there's such a backlog of celebrations that want to happen how many more holidays, birthdays, graduations and mother's days and father's days have to pass by without people being together we're going to do everything we can. obviously, we're being sensitive to doing what's legal in terms of what's mandated and what's not. our strategy has been to encourage people to do the right thing and to make themselves safe that's doing the best thing to new york city and bringing back jobs to the city everything we can do is where we are strategically. >> danny, what are you seeing in terms of customer demand and i ask because we saw a huge uptick in small business activity in the month of april

really big swing i would guess that some of your restaurants have seen different levels of demand over the course of this, everything from union square cafe and grammar city station and shake shack. what do you see? >> demand is on the uptick as a matter of fact, demand is outstripping in many cases the ability to hire back people. one of the things i hear from restaurant colleagues across the country, not just in new york city, is that there's this really interesting moment where we had huge unemployment in our industry and now we need people back, but we've never had moment in time wr this many restaurants were posting a help wanted sign at the exact same time so here's what i see happening as extended unemployment benefits start to decline and as more and more employees settle on where they're going to actually live, will they go back to where they lived before covid started? you're going to start to see a

shift and you'll see restaurants come back. we can't open more quickly and we can't take more reservations more quickly than we can hire a really talented and diverse staff of people. here's the opportunity within this challenge take new york city, for example. all of us, i think, used this past year to think deeply about some of the racial inequities in terms of how restaurants are staffed. we have a city that should look like our restaurants and our restaurants should look like our city what i really want to try to do is to help create a bridge so that people who need jobs can get a chance to eat in restaurants that need people if you have a heart for hospitality and you have a great work ethic, a restaurant is a great place to start your career. >> andy myereyer, thank you. we wish you well.

>> thank you both. thanks, andrew the company that says it can find computer malware that other firms can't. it's a story you don't want to ss ay tuned, you're watching "squawk box" and this is cnbc.

there is a new way to track malware and the company behind it is getting a lot of financial support. eamon javers is getting a lot of support. good morning, eamon. >> big investors being announced today for a small cyber security company called prevalia. they are no dollar amounts are being disclosed. prevailion says they can detect malware without going inside the computers. the company's critics are skeptical. they argue prevailion can't know more about the company's security than the company knows. the ceo told me as much as 80 to 90% of fortune 500 companies are already infected with malware. >> as we sit here today, we are in a losing position purely by

the virtue of the fact that there is a misperception that we're simply vulnerable and not compromised. our data suggests that there is an embedded malware proliferation and pandemic, cyber pandemic that is there that is just waiting to be activated. >> now prevailion says the achilles heel of malware is that it has to communicate back to the computers. they allow it to see the pings when malware communicates. the company has spotted 28,000 compromised organizations and can see 1 million malware pings per day. prevailion's sales pitch says all of the data can be useful to companies but also to insurance firms trying to price cyber security coverage and to private equity firms trying to understand the cyber risks at the companies they're acquiring. guys, here's the scary part.

we're told they're worried about vladimir putin's response to u.s. sanctions and russia has kill switch malware installed inside some of america's biggest companies. that would be one explanation for all of the malware activity he's seeing. back to you. >> seems like they're surmising and sort of inferring and implying a lot i don't know how much you can get your hands on definitively, eamon. >> yeah. >> as you say, the people that can get into the computers, the companies themselves, would seem to have an advantage in terms of looking directly at things rather than just sort of the evidence from outside. how confident are you? that sounds incendiary it's scary and a great headline. there's already all of these

>> the question is, is that true he's getting the backing from some of these big investors. it's isolating those pings and identifying not only what companies have malware on their systems but also what type of malware that is and in some cases even what organization of bad guys has put that malware on there by reverse engineering what the communications are. so that's a lot. it's a big claim and the question is do they see more by looking outside the companies than the companies themselves see by looking inside their own systems? and as a non-cyber security expert, you know, i'm not in a

position to sort out that dispute but it's a fascinating dispute. >> i think you're getting there, eamon. i'm taking your word for it. >> need to take a couple more. >> oh, man >> donna edwards and former vice president and chief of staff marc short which proposals can make it through congress that's the question this morning. 've got some answers when "squawk" returns the remarkable gx and lx. lease the 2021 gx 460 for $529 a month for 36 months. experience amazing, at your lexus dealer. that building you're trying to buy, lease the 2021 gx 460 for $529 a month for 36 months. - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything.

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president biden and senate republican leader mitch mcconnell clarifying their positions on some tax increases. the president says there is -- that they're necessary to create a fair economy mcconnell says that they would effectively kill any chance of a sweeping infrastructure deal that i guess would have to be bipartisan joining us now to talk more about the issue is former u.s. congresswoman donna edwards and former chief of staff to vice president pence marc short is now a partner at the coalition to protect american workers. congresswoman, i'll start with you. is it -- do you think that the ends are justified or do justify the means and that if they want to do it big and do it with tax increases, they shouldn't really even try to do it with

republicans, just go ahead and admit you're going to do reconciliation are you fine with that >> well, i don't think we're quite there yet, but i would be fine with it if it comes to a point where we realize that republicans are not going to come on board with an infrastructure plan that is broad, that speaks to the needs of the american people i mean, i think that, you know, what the president has said around the tax code, it's not like he -- this is news. the president even through his campaign talked about putting some fairness into the tax system and the proposals around capital gains and corporate taxes do that in addition to creating the income that we need, the revenue that we need in order to make investments in our infrastructure which will rebound to the american people and i think the president is on the right track. continue to negotiate to the

extent possible with republicans, but be prepared to do it on their own it's time to get it done the american people agree with it. >> so, marc, my question to you would be is it the details of the plan itself, the infrastructure and what we're calling infrastructure, what we're deciding to spend it on, the size of it, is that what you have a problem with? or is it the tax increases and the way that's being done that you have more of a problem with or all of the above? >> well, joe, i think it's a combination of factors i think when we talk about infrastructure, as you know, roughly 320 billion that the biden plan proposes for roads and bridges and ports, the vast majority of it is a bunch of other social programs. i think our concern is the taxes you'll lose. when we reduced from 35 to 21 we

created over 5 million new jobs just before the pandemic hit the pandemic has cost this country 8.5 million jobs if you are just beginning to come out of a pandemic, why in the world do you want to raise taxes? doesn't make any sense you'll continue to chase jobs overseas the reality is we had significant foreign backing in the united states in 2018, 2019. 319 billion and $330 billion because of the lower corporate rate if you're simply going to begin raising taxes again, you'll chase jobs offshow.

>> can you define what that means? it's always so nebulous for me who should be paying >> let's look at corporate tax rates. corporate tax rates, as the president has proposed, right now they're sitting at 21% that's the low -- i'm a baby boomer that's the lowest corporate tax rate in my lifetime and so we've got to bring this back to some means of normalcy even at 28, 29%, which it came down from i think it's time to raise those corporate taxes. where we'll settle in terms of negotiation both in terms of democrats and republicans, i'm not clear. it's not going to be at 21%. capital gains tax, the president's proposals around capital gains would affect only 1.3% actually of filers.

500,000 people out of a nation of 340 million so i think that would be fair. making sure that the marginal rates that corporations pay is in sync so we don't have corporations that continue to make profits but profits but end up paying zero in taxes. that's what i mean about fairness and then investing that in to what benefits all of us, roads and bridges, child care, education, healthcare, these are things that are going to strengthen our economy over the long term. >> mark, do you think it makes sense to tax corporations at a higher rate in the united states >> no, i think the crux of your question is exactly the right question the central planners want to define fairness. the reality is when we were at 35 percent we were the highest tax mox the top 35 oecd

countries. we brought it down right in the middle because other countries have continued to lower tax rate to encourage bring investment and jobs in. if we went back to the top 28 we'd be top 5. and if you add taxes corporations pay we'd be number 1. again, number 1 top corporate tax amongst all industrialized nations if you add state and local tax to it. when we say we just want equity and fairness the central planners decide what they think is equity and fair. reality is you are going to chase investment overseas and send jobs overseas what we did by lowering the corporate tax rate is actually brought jobs back into our country. back into america which is what we want. >> when we talk about building back better. prior to the pandemic, congresswoman, do you acknowledge tesla the unemployment rate was very very low, that you were starting to see some growth on the low end that we hadn't seen for years in terms of low end wages do you think any of that had

anything to do with bringing tax rates to a more competitive level globally or what do you attribute it to the progress that we were seeing t lowest unemployment rate we've seen in decades. >> well let's be really clear. the unemployment rate had really started coming down after the investments that were made in recovering economy in 2008, 2009 with the great recession, unemployment was -- we were seeing steady declines unemployment that was humming along the stock market what some people view as part of the economy -- as the economy, i don't. it is part of it the stock market has been humming along even through this pandemic and so i'm confident that the american economy is strong and that corporations will be able to handle going from 21 to 25%

or, you know, 27%, whatever that number ends up being but the upside is that we're going make investments into things that make a difference in people's lives and that will in fact strengthen and redouble our economic recovery after this pandemic and look, i look at what is happening across the united states as we begin to open up. we will see an even stronger economy. and i will say whether the corporate tax rate, you know, goads up to the max that president biden wants or someplace in between, the american economy is going to be one that investors around the world are going to continue to invest in because it is strong >> mark we're running out of time but do you buy into that in the lag echktd from 2008 we final saw things happening in 2017 [ caster clukers maybe

that was the one program i remember i don't remember really any pro growth policy. >> the big stimulus package that first passed in the first year of obama administration took us three years to get under 7% employment after the tax relief we reached lowers unemployment in fifty years. we talked about programs the government thinks they know better what to do. one of the proposals in this plan is investment in electric vehicle battery parts? do you know who makes the battery part as many as in number one country who makes them is china. if we continue on this path of saying we're going to raise taxes to create a more fair and equitable economy is you are going to make america less competitive. our tax release in 2017 made america more competitive which is why jobs came back into our country. >> okay. thank you. congressman -- congresswoman edwards. thank you very much. we appreciate -- congresswoman, i still get confused about is it congressman or

congresswoman. congresswoman is better but there was a time i was told don't do it that way do congressman and -- do you care representative might be better i think. do you have a preference. >> representative, congresswoman. right now i'm not in congress you can -- >> -- all right. we're in this day and age. want to make sure. always a pleasure to have you on marc shore, i don't really care what i call you. no i'm joking with you. good to have you on as well. >> thank you >> jim cramer joins us now jim, the market has been selling off this morning i -- hard to describe exactly what's happening here. there's been some headlines around china and taiwan. i don't know what you think is leading to this right now. >> as these companies report, you keep hearing about inflation. you keep hearing about shortages. there are so many tech companies reported last week reported great numbers and stocks are well below. lot of calling of tops in the semi conductor cycle i think this is vicious rotation

and the idea that somehow micron is done, knowing you have -- i picked that one because that probably had one of the best of all the quarters or applied materials but at the same time i recognize they want to go lower. we had a rally yesterday led by retail i think those stocks still can have more to run but the only things that are really up andrew where the steels and that's bad i also recommend the pipe lines. they are a very small group but doing very well. crummy leadership. i suspect we have to wash out the sellers before we can have any sort of forward movement >> cvs health reported this morning, do you want to own cvs health right now >> i think cvs health looks like it is going toned up being down. i think it is terrific but i've got to tell you the gravity force here is just remarkable i think there are no flies in the cvs quarter. the as very good quarter but i've watched it go from

being up two to being up one i would buy that >> you would buy at these prices we had pfizer report this morning. a how do you even trade pfizer >> the retail stoox were up yesterday and the drug stocks were up.cks were up yesterday and the drug stocks were up. that's pathetic it it is only up 29 cents i think it is very inexpensive stock and they had a good conference call. i like pfizer very much. we talked about it on the show. >> ether joe -- joe. ether. do you want to own ether >> i own ether. >> you do? >> yeah. own a lot of ether. >> good for you. >> yeah. >> it's the one thing that's doing well right now >> i was trying to buy some non fungible token on time magazine. so tay made you buy ether first. i didn't get so it it just kept the ether.

is it

. good tuesday morning i'm carl quintanilla with jim cramer and david facebook. s&p looks to openber s&p looks to open -- pfizer raising guidance and will file for full fda approval of its covid vaccine this month >> plus u.s. chips intel movingh