good morning futures they're bouncing back ever so slightly the dow's up, it did close higher yesterday, the nasdaq where we really saw the selloff. in fact, most cryptocurrencies are also slightly higher like bitcoin, dogecoin is soaring, up more than 16%. it soared yesterday. i saw it as high as 66, 67 cents, a dollar seemed impossible not that long ago and now almost within striking distance maybe. who knows. the biden administration out with new vaccine targets that planning pop-up and mobile clinics and urging pharmacies to take walk-ins, details straight ahead. plus, signs of a recovery from the pandemic. lyft shares, as more people went for rides and got out of the

house. may 5th, you know what that means, this hour of "squawk box" begins right now good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin and happy cinco de mayo. i guess that's what you mean, joe, right may 5th a party later today? >> i do. my guy is having a party right now, a lime slice, a salt shaker and something in a shot glass. >> better than a party in your pants -- >> i'm sorry i'm sorry? i'm sorry? i'm sorry? 6:01 >> sorry >> i like it i like it. >> you said a party in a tie

>> how do you know it's my tie >> just following your lead. following your lead. party on your tie. >> good one. good one okay let's start with the markets this morning you did see the dow's uu-turn yesterday. treasury sector janet yellen saying the rates needed to be higher now, when she rolled things back she said she was not predicting or saying there need to be higher rate. you have a former fed chairman going through saying these things, she walked that back pretty quickly the dow did close higher it was lone -- one of the three major indices. s&p down, and nasdaq down significantly. a drop of over 262 points. it was about 1.9% of a decline

and it was the biggest down day we've seen since march 24th for the nasdaq this morning, there are green arrows across the board. looks like in early hours, early going, pull ypullbacks, rebounde what we saw yesterday. especially for nasdaq indicated up 72. nasdaq 92 points and s&p close to 17. treasury yield worth paying attention to, all of these comments coming from yejanet yellen, people seeing it play out on the ten-year 1.68%. joe mentioned dogecoin at the top. let's check out cryptocurrencies dogecoin is the one to watch pipe actually saw news, guys, the reason why it's up is because elon musk is going to be on "saturday night live" on saturday that's what you have happening dogecoin up 17%. by the way, dogecoin half of a

penny a few months ago now sitting at 66 cents, dogecoin's market cap is $86 million. you see the other cryptos, ripple up 3% litecoin up 3.5% ether up less. bitcoin up 1.7% at 54,453. we should also check out the "squawk stack," probably worth paying attention to other indices. dow transports another record close yesterday. it's now above the 200-day moving average for 191 straight sessions and it's 141% above the pandemic low for the transports you think about the airlines and other stocks that have suffered, they have come back in a big way. financials and materials also setting record closes yesterday. wti up as well it's up another 1.25% to 6651.

yesterday was the highest close since march 11th dogecoin on there one more time for good measure, up 17% andrew >> i think there's some reddit stuff? isn't there some reddit stuff happening with dogecoin? it reminds me, i don't know, the whole gamestop frenzy i mean this is -- that's unbelievable how about yellen, when she says something, oh, my god, yellen says something yeah, yeah, these treasury secretary. >> not the fed, right. >> but she's still got the mojo as the head of the fed it's good to start as the head of the fed and then go to treasury because it's still like yellen, yellen but it's not jay powell saying it, we moved to to do munc muncn and what he said >> it reminded me of munchen and

what he did at the dollar. remember, he spoke with comments at davos, never made it again. for the new treasure secretary, it takes time to work into this and remember that people hang on your every word on things like this i'm sure she never went to imply she was giving directives or telling the fed to do. she answered honestly and then realized you can't always do that >> rates need to rise if the economy gets higher. it's not that much of a stretch. >> fairly honest meantime, president biden announced new goals in the fight against covid, getting 70% avenu adults to receive the vaccine. and getting 70% fully vaccinated by july. the administration reallocating vaccine doses from states that aren't using them to others.

and the president will direct thousands of local pharmacies to provide walk-in vaccinations for people without appointments. fema is going to go to people who might have people reaching vaccination sites. as of yesterday, more than 56% had received at least one dose shares of lyft higher, better than the 53 cents analysts expected. and the active rider number of 13.5 million also beat estimates, if you -- i don't know where you looked that one up it's not on first call, obviously. the company is forecasting a quarter 2 revenue increase of 12% to 15% and we'll hear more about the quarter from lyft co-founder john zimmer. it's also decision day for former president trump

facebook is deciding whether to reinstate his account. remember, it was suspended on the riot on the capitol. to an oversight board tasked with making moderating decision for facebook and instagram that decision is expected at 9:00 a.m. today. there will be a lot of people closely watching waiting for this >> yes, sir, it's very crazy i don't know watching the republican party is pretty crazy right now we don't want to get into that obviously. the journal had an interesting piece on the whole liz cheney and wacko -- >> oh, yeah, mccarthy making comments on a hot mic. >> on a hot mic. i don't know, the republican party has decisions to make. coming up, tech crunch, and with names like amazon, microsoft and a huge lineup today. among the highlights -- really,

the honest company ceo plus co-founder jess er jessica alba here on the nasdaq do you guys think she's a fan and would come out on the set and say i'd really like to meet joe. >> probably not. >> she's not going to be on this set, she's going somewhere else -- do you think if she does request that, you'll bring her -- would you okay we're ready if that happens. that's ahead of the day. and gm's mary barra. "squawk box" will be right back.

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crazy, too joe. >> yeah, at this point, i didn't know what to think, i always not bitcoin, not talking about currency, but i thought i could find a way to describing inherent value i've been sold on that notion. dogecoin, i don't know, is there? or people just using it as currency because there are places accepting dogecoin for currency, right? >> nobody is using it as a currency nobody is using it as a currency i know people are accepting it as a currency. >> accepting, i know >> that's like people who say they're accepting bitcoin as a currency they're really not the whole thing is a farce the whole thing is a farce >> careful >> and dogecoin makes it a farce. >> right >> idea we're ascribing real value to bitcoin at the time you can't ascribe to dogecoin. i hope that somebody wakes up from this alice in wonderland moment and says what's happening here >> i agree with andrew's point

>> we have talking about nfts and shhe's devoting his time and it's paid with ethereum. >> it may not go to zero, the question is whether it's going to the moon. >> past the moon, dogecoin is out to mars, i think >> i've heard people who are very into bitcoin, who are huge defenders of bitcoin, huge owners of bitcoin, a lot of them don't like what they see with dogecoin because it makes a mockery of what they're doing with bitcoin >> it's a dcute dog it's got a cute expression on its face it's an nft -- >> it's like an nft -- >> did you guys read the gary notes, he did doodles for trades and conferences that he had, it

almost looks like a way of monetizing your brand, i guess i guess i've got work to do to understand that. we'll have him on to talk about that he's got so much money at this point from being an angel investor on all of the companies we talk about all the time i don't believe he's doing this for money. he believes this is the future where we're headed if you accept that on nfts, you might want to start thinking about -- i don't know, i don't know when it all becomes fed-induced insanity we can talk about this with the nasdaq nasdaq gave back what we've seen with recent new highs, coming off its worst day since march. big tech and chip stocks pulling back over concerns about rising inflation. maybe something that fed chair yellen -- there i go again, it's treasury secretary yellen. it's fed chair jay powell.

joining us, paul, we've had you on a few times, every time we've had you on, i don't know if we're asking for you to ring a bell but we're certainly saying tech's moved one way do you have a toe out the door maybe a little toe, not sergeant hulk a big toe at this point. >> i think after yesterday, you know, the fundamentals, as we get through the quarterly earnings season have been pretty strong i wouldn't buy too much tech at least this week because we have some more quarterly earnings to come, unless you know spot-on what they're going to report and what they're going to guide to, it's always risky to do that the biggest factor is not fundamentals the biggest factor what janet yellen said. tech stocks are the long-term duration, most sentiment to movement up in interest rates. and so i own, you know, a lot of the names that are, you know,

well-known, particularly the faangs i try to pick my slots i'm not too aggressive yet but after a day like yesterday, then, you know, i start to round up the list and i'm going to get more aggressive. probably next week, after we get the last quarterly earnings report to clear this week. >> the reports that we saw are a long way from crypto or anything even close or nfts or any of that do you think it's all related at this point to cheap money. or does tech deserve this or this is what's expected with reopening when they've done so well, when things were closed. and they might do even better when they reopen and not give back any gains so is it different fundamentally? >> i do think that you'll continue to have the move into cyclicals. the reopen trade you know, growth and tech have beaten value so badly for so long you know, going back to the '09,

'10 time frame, coming out of the financial crisis i do think, joe, fundamentals are strong in tech and i do think that the genie is out of the bottle. and we had a real pickup in pace from the world going analog to digital. of course that was already happening but now it's happening at hyperspeed. so i think fundamentally, things have proven to be better for technology technology is stronger just need to get through the near-term information flow >> what was with -- the semiconductor's turn yesterday, to consolidate, do you think that's all that was? >> yeah, i do. because within the tech sector, semiconductors are my favorites. about 50% of what i do which is way overweight in semiconductors we have veracious demand for the chips, joe, with the rollout of

5g, ai, cloud computing. we all know in the meantime we have a pretty serious chip supply shortage. and that will come through according to the major semiconductor equipment vendors, and you have a nice setup. the stocks aren't particularly expensive but some should go much higher. a company like micron it earned $3 a share last year it could easily earn $10, $15 a share, 5x in the next two or three years. there's still more on the semiconductors >> the numbers, a lot of the big numbers just in terms of valuation, some of them start with, you know with a "t." some start with two "t"s if you decide to buy those stocks are you assuming it's going to be three "t," 3.5 trillion events? so that's feasible maybe with

these dollars? >> yeah, i think it's feasible for a couple of them but among the faangs, clearly, the most bullish, based on what's been reported recently on digital ads and first and foremost google followed by facebook you know, the other trillion dollar market caps are not so bullish. microsoft and apple. i think amazon is okay but i think of the majors, we've really seen resilience and even acceleration in growth of digital ads and google and facebook, i think, can go much higher. not so sure about the other ones >> just -- the ads got -- someone has to make the things or provide the services for the ads, though, too so there must be some other undervalued areas, aren't there, old economy-type stuff >> oh, sure. >> it can't all be about just targeted -- >> yeah, that's right. >> at this point, paul it just seems like with all of

the indications we're getting, i guess that's just the froth that you can expect when not only is the fed on full bore with everything, then you've got these trillion dollar stimulus bills that coming fast and furious, one after another one after we finish one going to the next >> yeah, i think google and facebook, among the majors should be still ample price appreciation potential you're absolutely right, joe, going back to my favorite group, semiconductors there are some names that aren't necessarily mega caps. there's a company reporting klic, that nobody cares about, that's smaller cap, undiscovered great upside opportunity >> thank you, paul paul meeks >> yes, sir. >> becky thanks, joe. when we come back, how high is too high for a stock price

it turns out there's actually a concrete answer. 429,496.73, yep, that's it that's the number. we're going to tell you why, next -- first, though, as we head to a break check out shares of match group the owned of tinder and other dating apps reporting better than expected earnings and predicting second quarter estimates with the growing number of people getting vaccinated we can't help but get excite and look forward to a summer of love stock is up 6.5% "squawk box" will be right back.

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an interesting story on the front page of today's "wall street journal," on a stock with a price that's just too damn high berkshire hathaway shares trading at $420,000. the price is so high it's approaching the maximum number that can be stored in some exchange computers yesterday, nasdaq suspended broadcasting prices of those shares over popular data feeds its computers use a digital format that can't count higher than $449,000 and change the nasdaq is looking to fix the problem, but exchange operator iex has reported the same limitation of course, this is a problem unique to berkshire because the stock with the second highest price is home builder nbr that is trading at $5100 a share.

warren buffett has refused to execute stocks for it signing bi berkshire may you live until the stock splits >> i love that may you live until the stock splits >> right it better not split after you signed that. >> right, exactly. >> pick where or when you're going to die >> right >> you want to know where, never go there don't ever split the stock, you live forever, i guess. >> right the stock wars in hell is going to freeze over when we come back, dr. scott gottlieb is going to weigh in on the biden administration's new vaccine targets. and a programming note don't miss the exclusive interview with richard clarida today for the closing bell

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♪ good morning take a quick look at futures right now, we're in the green across the board dow looks like it's opening up 93 points higher, s&p 500 up 17 points and nasdaq opening up 76 points higher. becky. >> thanks, andrew. president biden has set a new goal of having 70% of adults in america receive at least one dose of the covid vaccine by july 4th the president says that is a big step to a return to normalcy joining to us talk about it dr. scott gottlieb, a former fda commissioner and serves on the boards of pfizer scott, what do you think, is it an achievable goal >> i think it's achievable 70% avedults by july 4th would e

175 million people that means we need to get 25 million more people over the next two months. i think that's achievable we're going to see a slowing rate of vaccination but i think we should be able to hit that kind of a target. the administration announced they're going to push out vaccines to different avenues. going into community through mobile vans, through pharmacies and doctors offices and get it to convenient points of care for people reluctant to get the vaccine or having a hard time getting into one of these big vaccination points so they'll get it at a point where they'll show up. >> but maybe worth pointing out that the road blocks to getting to that goal wouldn't seem to be on availability of the vaccine or the means for getting it to people it seems like now we're maybe hitting what you had warned us about a few months ago which is there just aren't as many people who want to take the vaccine >> yeah, it's softer demand.

i'm not sure that the people who are left don't want the vaccine. they just don't want to spend the whole day getting the vaccine or line up for it. there are people if it's offered in a doctor's office or maybe if they findit in a walmart or cv while they're walking in with no vat, they'll get the vaccine we've got to market it more aggressively the demand is just softer. walk-you have sites, 24/7 walkup sites that the administration has promised setting those up places where you walk up and don't wait to get the vaccine. but i think we'll pick up more people i think we'll probably get to that goal. my prediction we would get 160 million or so by the summertime. i think getting 175 million by july 4th is probably achievable. it's a little bit of a stretch goal, but i think we'll get there. >> in the meantime, you look at the juxtaposition of how we're doing so well with roll out the vaccine and how other countries are really struggling.

specifically, india. there have been a lot of questions raised about what we can and should be doing. there are question raised with what to do with the intellectual property of these vaccines if we can't hand the vaccines themselves over, how do we help some of these other countries? what's the answer? >> look, i think we should hand the vaccines over. by the end of ly, we'll have 300 million extra vaccines with the manufacturers. i think we can be providing more to other countries including india. remember, india was going to be manufacturing their own vaccine, they had set as a goal 4 million doses over the next year it's been more challenging to get the yields of that vaccine they've only been able to distribute more than 100 million doses. manufacturing these in trivial i think before we start giving away intellectual property and the only country that's going to step in and start manufacturing these if we do give away that

ip, i think we ought to give away the doses that we're stockpiling here in the u.s. and the final thing is it's not a trivial affair with the vaccines and india has demonstrated that with the challenges they've had scaling up the astrazeneca vaccine even if countries are cooperating doing a full tech transfer, it could take a year to stand this up these are complex vaccines that we use it's new age manufacturing technology >> what happened in india with the manufacturing? what specifically went wrong >> yeah, i don't know all the details but the yield on that vaccine is lower than other vaccines so you get about 15 times the yield from the j&j vaccine than from the astrazeneca vaccine so it's a different manufacturing process. they've been able to stand up manufacturing they just haven't been able to ramp it up as quickly. i suspect over time they're going to get doses available they've also had challenging distributing it. that's part of the problem just a cautionary tale, it's

harder to manufacture these new vaccines than we think we've seen companies even in the u.s. run into challenges i think the most expediate way to get vaccines around the world is ramp up manufacturing between the three manufacturers j&j and moderna and pfizer they've committed to make 9 billion doses. moderna, 1 billion, j&j, 1 billion, there's a lot of vaccine coming online. we could do a better job sharing it >> that's my next question who's at fault there is it the united states for hoarding this stuff? was it some of the other developed nations for hoarding the vaccines? is it the fault of the manufacturers for not having deals with india >> well, look, the companies have given away some vaccines. pfizer has committed to giving 40 million doses through covax the bottom line before a dose gets shipped out you need permission from the united states government. so if we have 300 million doses that we're sitting here in the

u.s., the u.s. government has to made a affirmative decision to allow that companies would be on board to the markets in need if they had the ability to do that >> there are the 300 million doses sitting right now? sitting in storage, are they shipped to the states? what's the breakdown >> right now, there aren't quite that many. that's what i estimate by end of july there's been estimates put out of 300 million right now in the district channel, 75 to 80 million doses maybe a little more in warehouses so there are extra doses sitting around in the u.s. there's always some in the supply chain, but it's starting to build up at this point. >> yeah. i saw a graphic, a chart the other day that sort of showed where there is demand state by state. as you might expect, on the coast where they've had the most cases, the most severe reaction, california, new york city, some of those places, massively high demand but when you look towards the

middle of the country, especially the upper midwest, farther out, less demand in some of those states. in some cases, less than 50% we're still shipping the same number of vaccines to every state, right is there a point that plan starts to change, if you don't want it, okay. we don't leave it sitting on the shelf. >> yeah, we're sill allocating the amount to states but the states aren't pulling down the supply that's why there's excess supply in the distribution system the doses will be allocated to the state, but the state will not draw down the dose and they'll be sitting in a warehouse, typically at the manufacturer >> scott, i want to go back to the ip, i very much believe in protecting intellectual property however, as you know, there are members of the world health organization that say the argument here is self-interested and bogus when it comes to the manufacturing issue, which is to say, you know, look how long it

took the took the u.s. to get its manufacturing up and running now that lessons, by the way, have been learned here in the u.s., why would it be so hard to actually do that elsewhere that's not to say it wouldn't be difficult, but the question is whether there would be actually be a benefit, and whether the argument that the companies are making, as i said, are effectively self-interested on what is now a global health pandemic >> well, look, we just need to be honest about what we're promising. we're not -- if we promise that we're going to give away the ip, we're not promising that anybody is going to get a dose from a manufacturing facility outside of the united states for at least a year i think it will take longer than that i do think the chinese and russians have the capacity to copy these vaccines. there's one in south africa we could do a tech transfer they couldn't make a vaccine soup to nuts because this is a multiprocess

even pfizer manufactures vaccines over multiple facilities it could take perhaps finishing in some parts of the steps, stestep s involved it would take time, personnel and new equipment in there. i'm not saying it's not possible but it's not something that is going to solve the problem in india, there are manufacturers that do the capacity, they don't have the capacity to make the rma vaccine, you need to do a tech transfer i'm not saying they can't do it. but you've seen the problems they've run into manufacturing the simple vaccine the environment vaccine. if we're promising people giving away the ip, they're not going to get a vaccine probably for about a year, maybe from the china's or russians, perhaps >> i just want to talk to you about the return to work i don't know if you saw this interview that "the wall street journal" does with jamie dimon yesterday, he's desperate to get

his team back to work and back into the office. in one part of the interview, he alluded to the idea of mandatory vaccinations but he alluded to the idea of legal issues around that we've talked about this many times before do you believe there's a legal issue that would prevent a company like jpmorgan or another major fortune 500 company from requiring the vaccination? >> well, the eeoc has ruled on this and said there aren't any legal issues i think the companies may have more comfortable once the vaccines are fully licensed. my hunch is, the company is going to wait and see what the survey shows how many people are vaccinated if they have a high vaccination rate that companies see that they have they're probably not going to mandate it. the companies that are going to, right out of the gate, smaller companies, customer-facing, restaurants, places where you have a lot of people interacting with a lot of people i would expect places like that

start to mandate vaccines. there's a survey that shows 50% of businesses are complementing it we'll have to see how many employees get vaccinated a lot of these industries you'll see have pretty high uptake of the vaccine. >> dr. gottlieb, thanks for joining us always great to see you. we'll talk to you soon >> thanks a lot. coming up, it's the end of an era in more ways than one. we'll talk trading pits and snow days next. how they're related. also don't miss the first on cnbc interview with mary barra ceo on company results reminder, you can watch us yte animon the cnbc app. we won't be gone long. be right back.

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the end of an era, the cme is going to permanently close most of its trading pits in chicago. the exchange already closed a number of those pits in march of last year and had been closing them in the years prior, as the rise of electronic trading made floor trading nearly irrelevant. and culture commodities existed in chicago since the mid1800s, but it made sense because they

were the pits. kids in new york can say good-bye to snow days. the department of education said until the case of severe weather, this is sad, only for a year, supposedly, students, now there's no snow days login from home. that means no matter how much it snows you still got to go to school this makes sure that the children get the 180 days mandated this only applies to the coming academy year so far. that's one of the great things in childhood i think back on, andrew i don't want that to go away for good the possibility of a snow day. >> i'm sad about it. that, i'm sad about. coming up, jamie dimon saying he's ready to cancel all of his zoom meetings get back to the office we referenced with dr. scott gottlieb and check out shares of a activision blizzard. and the results and the company

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welcome back to "squawk box" this morning jpmorgan ceo jamie dimon said he's fed up with zoom calls and wants to get workers back to the office he made those comments at the

ceo council yesterday. >> it doesn't work for those who are younger people, it doesn't work for those who want to hustle it doesn't work for spontaneous idea generation. >> how does it work for your culture? >> it oesn't may 17th, one or two days a week get used to it. >> recent survey by koryn ferry said they will turn down a job that requires them full-time in the office for more on the future of work want to welcome alan green fascinating study. it effectively says there's a huge population that basically says they don't want to come back to work the question is, what is jamie dimon supposed to do about that? who has the leverage >> it's a couple of good

questions. jamie answered it. he said they need to get back to the office, get their head around a couple of days a week you'll have a couple of paradigms. you'll have office centric company cultures and remote centric company cultures meaning where is their bias? then the reality is probably 50% or more of all workers are going to be hybrid, meaning that they will have some cadence of being in the office, whether it's two days a week, one week a month or some mechanism that the company puts in place but we are definitely not going back to the office the way we did prior to the pandemic >> i know there's a whole view that the world has changed the closer we get to the return to normal, the more we will return to normal and we're going back to the old, which is to say if you're not in the office, you're a second class citizen.

>> so that's another point around what will it do to careers? the jury is out and it will take a couple of years to sort this what's happening is we're building towards this, the pace of work had gotten so frenetic over the last decade people needed the opportunity to have a break. that wasn't happening. the pandemic created such a shock to the system that we got away from this thing where life was something that happened on your way to and from work. it gave people the opportunity to have options. they've gotten used to that, and in many ways it's increased their quality of life. so companies are going to have to figure out how to satisfy the employees' desire and fully 70% of people want some hybrid work model. 20% want never to return to office you're not going to change that. a new pack between employer and employee. >> alan, this is what the worker and the public including myself

say this is what we want but the second one of my competitors is flying across the country to get the interview, get the meeting, get whatever it is to kiss the ring or do whatever they're going to do, i have to get on that plane first there's not really an option all of the edge case on the fence things that we used to do that we didn't want to do but we thought we sort of had to do for whatever reason, you know, i don't think you're going to be able to tell somebody, you know what, i may get killed online for saying this, i think you'd want to say i realize during the pandemic i want to spend more time with my family. no, i'm not doing that work dinner i can't get on the plane i'm not going to do this, i'm not going to do that i think there are people who will say that and do that but i don't think it's necessarily going to be respected unfortunately perhaps. >> you're absolutely right the work dynamic though is going to get redefined remember, some of those clients that you got on the plane to go see before the pandemic, they

don't want to go to the office either they don't want to go to a client lunch either so there is going to be a reset of what interaction looks like between the face to face and the remote. i actually think it's a good thing because honestly work had gotten to be so frenetic that work was consuming people's lives to the point where we were really kind of reaching a terminal velocity. now giving people this permission to not have to fight for flex time but actually make flex time part of the culture is going to be great because you're going to have people at work a lot but you're also going to have people have the flexibility to be remote a lot and i think that combination is going to be better than the old paradigm >> i hope you're right i genuinely hope you're right and i worry that we're both wrong. alan, it's great to see you this morning. i hope we get to see each other in person soon. >> glad to be back, thank you. >> becky >> thanks, andrew. still to come this morning,

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futures are higher this morning after the tech stocks got slammed yesterday. we have a look at what you need to watch in today's trading session. that's straight ahead. the honest company ready to go public. we'll preview today's debut and speak with founder and actress jessica alba that's coming up in the next hour plus, hotels looking to bounce back from one of the worst down turns for the sector in history the ceo of hyatt hotels talks quarterly results and the reopening of business as the second hour of "squawk box" begins right now

good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. equities in the green. right now we're about 70 points on the down. 16 points on the s&p 500 janet yellen saying she doesn't see a long-term inflation problem. she said rates may need to rise but tried to clean those remarks up she was neither predicting nor recommending rate hikes. given her previous role, anything she says gets taken pretty seriously by the markets. facebook's oversight board set to announce a ruling whether to lift former president trump's suspension from the social media platform that decision expected to be announced around 9 a.m. eastern time right at the end of "squawk"

right on to "squawk on the street." we'll see whether we get to talk about that or whether we'll wait for the gang with jim, david and carl to talk about it. facebook would have seven days to reinstatethe account if the suspension is lifted and krispy kreme, my favorite, set to return to the public market five years after it was taken private. it was bought by j.a.b. holdings the donut chain has filed kiflly for an ipo to take advantage of a record boom in capital raising. national donut day happens to be on june 8th. i want to put it out there because you know my interest in donuts. >> are you prepping? are you going to see if you can eat a dozen in a day >> only if they're glazed. if they're glazed i can do a dozen. >> it gets harder.

>> with butter and maybe ice cream and maybe even some syrup or something what was it, krme was the old -- because this was public -- or maybe it was kreme it was public five years ago time flies. >> i want to say krme. >> where do you get the free donut if you get a sack seen >> i have not taken advantage. i have my qr code and my vaccine app. i should walk in there and do that i'm trying to be good as i build up to -- then there's june 8th that's a big day i try to get all of my donuts in on one day. >> they make mountain dew that you fly off the walls. you eat 12 of those donuts, you're going to be soaring i don't know if that's -- that's a lot of -- >> but there's a crash, too, joe. >> there is a crash. >> there is a crash. >> i was going to say, i've watched you eat 9 and it's the

sugar high but the crash that comes afterwards comes pretty fast >> yeah. >> remember those ones we have here, there's some good ones here with bacon on them and stuff. >> there was a philadelphia company that sent them to us that were amazing. it was a national donut day. >> you couldn't see them anywhere whatever is on them would spread out on the new hampshire let's talk about this big ipo. jessica alba, the honest company set to go public leslie picker joins us with more on the growing consumer goods company. have you done some of the products and stuff, leslie are you familiar with it >> yeah. >> really? >> i have. i should have brought props. no, i am familiar. i've used some of their baby products as well as some of their skin care products it's been quite the journey for this company

a volatile few years to get to the public markets, but today the maker of the baby and beauty products is looking to make its debut. honest priced the ipo at $16 each, $1 below the top of the range it had been marketing to investors. that implies a $1.4 billion valuation. that's shy of the $1.7 billion valuation honest notched in a private funding round six years ago. now that fundraising took place just prior, if you guys recall, to those voluntary recalls there were some ingredient labeling issues and class action lawsuits all of which caused the company to take a reputational hit and sales to slow. honest actually lost its unicorn status in 2017 raising capital below a billion dollar valuation. after several changes in the c suite and a pandemic that got people internet savvy, honest has grown.

it grew 28% to $300 million. net losses cut in half later today wall street will have its say when shares begin trading. honest company's listing will be trading on the nasdaq under the symbol hnst. >> hnst. >> hnst. >> there's a lot of commotion, that's all i'm going to say. there is i saw one guy i know, he's one of our big security guys and about five other ones. i was thinking, wow, these guys are really -- i guess my -- i'm getting known far and wide and they're all out there -- but that wasn't -- no, it wasn't me, leslie it's for the albs, who will be here. >> for the other celebrity. >> yeah, for the other -- yeah if she's an a-list, we may need to go to even the greek letters, i think. we may need to pass z. >> you would be a k list

alba and kernen. >> k list. all right, leslie picker you'll be tuned in, right? we don't often have -- >> absolutely. >> -- big-time stars she will be here so people are -- it's starting the nasdaq, there's a lot of people in. i used to be alone here. there's a lot more people around ipo people support people so it's coming back. we may even have the confetti pretty soon that we used to always find -- find little pieces days after, after a big ipo. see ya, leslie thank you. >> that would be great. >> okay. time now for our market minute dom chu joins us with the latest what have you got? >> my daughter's favorite body wash shampoo is honest lavender. there was a time where we took those krispy kremes and made breakfast sandwiches out of them talk about decadent. interest rates, comments from

secretary yellen and everything else happening, take a look over the last six months. we've been talking so much for years megacap technology driving the markets higher the tech weighted etf that tracks the s&p 500 is up 13% meanwhile, a more equally weighted basket where no one stock is more than 2% of the index, that's up about 21% over the last six months. it gives you an idea megacap technology has been under performing let's take a look at the four of the stocks that did the worst of the performing four of the biggest stocks in the tech sector. take a look at this theme over the last six months. take a look at pre-market trades in companies like apple rebounding up 3/4 of a percent microsoft up 1/3 of 1% nvidia up 1.5% same thing over here for paypal holdings these were four of the biggest losers in the technology sector. the overall megacap at least $100 billion

apple and microsoft around the $2 trillion valuation. then, yes, technology is a huge focus. i don't even know what to make of this chart these days i'm going to put it up because it's sheer voyeurism, whatever else it is it's dogecoins it's up 20% so far today up around 14,000% on a year-to-date basis becky, you may recall in february, march, april, that time this token was worth just around a nickell a piece now it's at 68 cents again, i don't know what to make of it, but we do noe lon musk, the ceo of spacex and tesla will be on "saturday night live" on nbc this weekend a lot of people may be speculating, speculating that there could be comments coming from him about dogecoin so they're trying to get in front of this. i don't know, i'm putting it up

there to tell you what's going on i don't know what to make of it, becky? >> i'm not sure anybody does we watch it go, up another 20% this morning dom, thank you great to see you >> likewise. when we come back, the pandemic pushing the hotel industry into one of the worst downturns ever hotel operators are looking to bounce back this year. we're going to speak to the ceo of hyatt hotels and get an outlook. before we head to break, let's check on the markets dow futures indicated up by 57 points dow up but the s&p 500 and nasdaq were down the nasdaq was the big decliner yesterday. it's up by 69 points "squawk box" will be right back.

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president and ceo of hyatt hotels thanks for being here. >> thanks, becky great to be with you >> let's talk quickly about the quarter. the quarter is backward industry in your industry things are changing quickly the loss was wider than you were expecting. revenue is down drastically. that part itself didn't come as a huge surprise. >> correct we had a very strong quarter and revpar performed better than we expected the the progression over the course of the quarter was incredible. we had revpar levels that were 50% where they were in january the ramp during the course of the quarter was really pronounced one of the key issues with respect to our reported net income was a write down, a valuation reserve against all of our deferred tax assets that's a gap principle that we had to apply this quarter

that's actually what drove the large variants. >> i know your revpar for people who aren't familiar revenue per available room was down. what numbers were you talking about in march what was it looking like >> revpar over the course of the whole quarter was down 50% for the quarter and down 65% roughly from 2019 levels, which really progressed better than we expected and what we saw was leisure demand driving that significantly. so we had some amazing results in march for example, the spring break yielded 7% where we had resorts running almost 70% occupancies which is pretty remarkable relative to 15 months of really tough sledding. >> what is april april felt to me like a time

when the country really kind of exploded even more and you saw more leisure travelers especially booking up. >> yeah, no question the progression definitely extends into april and we're encouraged by that and it does remain driven by leisure business and it's also true that we're starting to see some really interesting and really encouraging signs of group business a among corporations, it's an association business, is also starting to tick up >> where like what businesses -- what business travel do you see what kind of group rates are you talking conferences again? >> correct i think the common help we need was the progression of the recovery would be leisure business, business transient travel, individual business people traveling and group meetings i think it's actually going to be inverted with respect to the last two group will come back in a more pronounced way earlier

we're starting to see corporations companies in the pharma industry, companies in the information technology and consultancy, systems integration and banking and finance, those are the sectors we're starting to see some real activity. our first significant corporate meetings will be for two pharma companies, one in june and one in july. large scale for any point over the last year. in one case, over 1,000 participants over half will be joining through a digital platform we're thrilled because we just spent about 6 months designing a new hybrid platform that we just launched called together by hyatt which is designed to create a more seamless experience from people who are in person in our hotels and those who are joining through digital. >> mark, you just lost me. what does that mean? you'll have a 1,000 person conference, only half of them in person, half of them will be

online what does hilton have to do with that are you launching your own zoom? >> first, it's hyatt sorry to correct you. >> hyatt my apologies >> it's okay it's another h the answer is -- i'll tell you how it's going to work the company decided that they needed to have a convening they recognized the really significant benefit of having people in person so about half of the 1,000 people will be spread across ten different hotels across the country so every location will have about 50 people attending in person. it's linked, of course, and then there's a digital channel people can actually join through that is virtual and it's through a digital platform what we just did in launching this together, we partnered with a company called stop card which is a paris based ai enabled event platform and it's got a unique interface so the

participants themselves can connect through their interests or preferences and the meeting planner, event planner has an overall view about engagement and activity and the system itself can provide predictive recommendations for individual participants as to which talk station they should focus on and what exercises they want to do we've infused this platform with some well behaving platform with mirabel and headspace. >> do you think that is the conference of the future, that we're not going to see giant conferences of 500 or 1,000 people in the same place but you can make it still happen in smaller groups that all link up to each other? that's a really different way. do you think that's the conference of the future >> it's certainly the conference of 2021 and 2022 i've talked to a number of large employers who -- mostly professional services firms who are really struggling to decide whether the in person partner

meeting or large scale meeting that they had planned for october and november of this year should be held or not and i keep talking to them about the fact that, you know, don't make this a binary decision and i think that a lot of companies will opt for something that looks like a hybrid experience in this period of time when it's very uncertain if you've got colleagues outside of the u.s. especially, which markets are going to be open for travel. so i do think this will be the mandate for the coming year or two but i don't think it will be the dominant platform thereafter because i'm already seeing it and hearing it for people who have gotten together in person the pent-up demand for human connection is so great that i think people will absolutely see the value and the benefit of convenings again there are city wide convenings, big conventions that are actually working through the planning for later this year and

in places like denver, san francisco and they're working with the local community and ensuring they can stand something up so they can bring larger groups together it's just beginning to show signs that the demand is going to actually be realized. >> mark, one last question leisure travel versus business travel what is the profitability? i'm assuming you make more on business travelers >> i think the fact is it depends on the period of time. what i'll say is that in normal years, pre-pandemic, 45% of our rooms revenue came from leisure travel as a reference point about 2/3 of our rooms came from leisure travel the mix has changed tremendously the fact is that rooms -- the actual room rates are holding up really well relative to 2019 so i think that's the key

it's not so much a comparison between one or the other but the question is will room rates hold up so far we're seeing encouraging signs. group travel brings other revenue, banqueting, catering, meetings services and that is a much more significant impact once groups come back. >> mark, thanks for your time today. good to see you. >> good to see you too thanks. >> take care a programming note for you by the way, we're going to hear more on the reopening and travel demand tomorrow with booking holdings ceo glenn foghle. andrew >> thanks, becky when we return gary vaynerchuk will join us to talk crypto, nfts and so much more. maybe a little dogecoin. plus, gm results with chairman and ceo mary barra at 8:35 this morning. "squak" returns right after this. time now for today's aflac video question

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now the answer to today's aflac trivia question. the video game donkey kong debuted on what video game console? the answer, colecovision in 1982, coleco paid nintendo $250,000 for the rights to the game which came with the console. >> that was a trick question and it totally got me. i thought it was nintendo. still to come on "squawk box" this morning, we are waiting first quarter results from general motors. we'll bring you those numbers and break them down with the ceo mary barra that's straight ahead. the stock is up by 1.4%. the honest company is set to ipo later today. we'll talk to founder jessica

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welcome back futures this morning are in the green. a little bit anyway. the nasdaq was down over 200 points yesterday it's getting back to about 87 of those points the dow jones managed to eke out a gain after being a lot lower in the middle of the session ended up 19 points up 63 points or so today the s&p didn't fare too badly yesterday. it's up about 16 or so this morning. if you check out treasury, the 10-year, back above 1.6, just barely 1.607 as you can see on the 10-year right now. and i believe we were waiting for gm and those earnings and it just hit the wires and phil lebeau has the numbers hi, phil. >> hey, joe. these are far better than expected earnings for the first quarter for general motors how much better? the company earned on an adjusted basis $2.25 a share

the street was expecting gm to earn 1.04 a share. more than double what the street was expected revenue coming in just a bit shy of expectations at $32.47 billion. altogether gm made $4.4 billion in the first quarter primarily because of north america, 3.1 billion. gm financial at 1.2 billion. china brought in another 100 million. free negative cash flow $1.9 billion. that's because the company is sitting on approximately $8 billion worth of vehicles that are built but still awaiting some semiconductors before they can be delivered so all of that inventory is sitting there and that impacted free cash flow now to the part that people are going to be focused on guidance in the second quarter, it is reaffirming its full-year target of earning between 10 and $11 a share. 10 and $11 billion, excuse me. the full year 2021 profit

guidance is at the high end. so they say it's going to be closer to the $11 billion. the chip shortage full year impact remains the same, between 1 and $2 billion in q2 gm expects to be profitable but it will be lower profitability due to the chip shortage it does, however, expect to earn $5.5 billion in the first half of 2021. do the math. 5.5 minus 4.4, a little over $1 billion is what they expect to make in the second quarter stable truck and suv production in q2. gm does not break out any production numbers and it also is expecting to see a recovery in production starting in the third quarter. no change in guidance in terms of ev production plans, which are going to be ramping up later this year. don't forget, you do not want to miss what mary barra has to say about this we will talk with the chairman and ceo of general motors, that is coming up next hour, guys again, general motors far better

than expected earnings in the first quarter. 2.25 a share and reaffirming guidance towards the high end for full year guidance back to you. >> thank you for that. we're looking forward to that interview with mary barra in a little bit. coming up on the other side of this, gary v will be launching an nft collection. he'll join us after the break and be sure to keep it locked right here on "squawk box. we'll be speaking to the honest company founder jessica alba and the company's ceo. we're back right after this. the lexus is. all in on the sports sedan. lease the 2021 is 300 for $369 a month for 36 months. experience amazing, at your lexus dealer.

nonfungible tokens have grabbed headlines. surprising prices and the celebrities getting involved in the craze. entrepreneur and vayner media ceo gary vaynerchuk has launched a first of its kind nft collection, v friends features more than 10,000 tokens of art drawn by gary and each assigned utility through a smart contract gary vaynerchuk, ceo of vayner

media. v friends ceo and creator. something i don't see how you could have been planning it for that long because it's so new, gary v you wanted to do it on a celebratory day, which i love. i love may 5th, obviously for a lot of reasons you did it today i said earlier you've been an angel investor in so many startups that i believe you. this is not i don't think necessarily a money making venture for you. it's for you to try to bring us all up to speed on what's possible in terms of community and nfts you have to go slow and explain exactly what we're talking about because to be honest, it sounds kind of whacky at first blush, right? can you start at the beginning and go over it for us, gary vee. >> any time smart people think what i'm doing is whacky at

first blush i know it is important. to break it down, it is a platform that has a smart contract underneath it that gives every single person of the 10,255 token holders a ticket to a three-year super conference i'm announcing to veecon south by southwest meets davos, comic-con, a huge conference so where people have been missing nfts and continue to miss nfts is the smart contract. this isn't about me putting out a piece of art, even though i've been doingling for a long time even though this is the beginning of me standing up an intellectual property that i'm going to be building for the rest of my career, what i'm trying to do is bring enormous value underneath the contract including 555 gift goats, my friend, that you will tooly when you buy that token, you register to the site and a minimum of 6 times a year over three years you're getting a surprise physical gift in the mail. what i've ton is created

triggers to allow me to bring tremendous off chain value while using the on chain dynamics. >> ethereum is involved with a noncustodial wallet. that's how you do it there's going to be a dutch auction for most of these. do you have any idea what one of these would cost for starters? can you just estimate it >> yeah. >> where it do go? >> you know, the majority of tokens are going to start at 3 ethereum and dutch auction down to .5. i want to cap it we have way too many people putting out projects and people over spending. i think we're seeing a lot of dynamics of the ico market in 2017 definitely for this crowd. this is so easy for this crowd this is internet 1999. crazy hype on the overall technology, way too many people land grabbing and going for

cash boom, it's march and april 2000. this crowd watching knows, collapse meanwhile, in that collapse was e ebay, was amazon, most of all when people said oh, the internet is a fad and left the sector, that was the time to double down. it was the beginning of the most important change in technology in our history the blockchain, and i believe nonfungible tokens, are a much, much bigger thing than a jpeg that's a piece of art worth money. it's the underlying contract i appreciate what you've said. i've got a career where people are going to look at it and my plan is i've launched vee friends, every celebrity, influencer, cancels their meetings and gets their piece of team together, that piece of crap art, let's spend three months and put out something

meaningful to our company because if they win, we win. >> in terms of, gary, just being a futurist, i mean, you've been right -- i don't know if you've miscalculated anywhere at this point so to say that this is not going to come to pass, i would be crazy to say that the communities and i guess is it about monetizing celebrity for some people, gary? is that what it would be it's not all about helping people actually get into the new age. that isn't the only reason that someone would do this, is it >> i mean, you could if you're an angel or an ideaologist i think the -- i think every great brand, every great business, the number one way to be selfish is to be selfless up front. if you're able to provide more value than, you know, you charge for, you know, you're always going to win it's not a super complicated game i think the problem with, you

know, the wall street dynamic or the entrepreneurs that just want to buy a boat is everyone's in a vicious cycle of short-term economics. everyone wants it now, now, now. i believe that nfts create an incredible infrastructure for brands, intellectual property and individuals to create very meaningful monetization for themselves over time don't forget these tokens become things that the audience are able to transact on. if people are thoughtful, patient and really, really execute something of value, they have an incredible opportunity to have a win-win situation which does happen in business. >> hey, gary, can you just explain, because i admit i'm still confused a little bit about how this is going to work. so each of these drawings go for up to effectively $9,000, close to $10,000 based on what ether is priced at

you said it's capped at 3? >> the admission, 9400 for a token. admission tokens, they range between 10 and 3 etheria all the way down to .5 and 3 there's a whole level of tokens that are a big part of the project called access tokens a courtside cat token which is a 3 year token that lets you sit courtside at madison square garden with me the reality is there is a whole access layer as you can imagine, if novak djokovic is watching, wait a minute, instead of a photo, why don't i put a contract that allows people to play tennis with me. you start creating that economy of access, which is really the most limited thing in the world, and you could start seeing how this layers. this is going to be how

memberships work this is going to be how artists launch an album and in their pre-sell of the album the five best tokens are access to go in studio while they work the album. this is a layer of smart contract that people haven't wrapped their head around. and let me make this point because i like being right and i like clipping this in seven years in whatever the social platform of the day is when we get into public wallets where the way we look at each other's instagram or the way we google each other and seeing somebody on this great program, we're going to start looking at everybody's public wallets and see what tokens they have. these are going to become collectible derivatives, they'll be assets and marketing material we'll be in a place as costs drive down from a tech standpoint where you're going to find it hard-pressed for any business in the world to not issue an nft for everything they do because it's going to make logical sense the way having a

social media account and website make lodgical sense. >> and in terms of cost to you, how do you think of that there might be six gifts a year you get with the token next year at the garden, that seat costs you real money. >> $10,000 shopping spree at wine library, wine shopping spree woodchuck, look for that one. my accountant's jaw hit the ground when they understood the floor of the ethereum price if this project went well and i'm explaining to them how we have to start thinking about a loss on this business and they just couldn't wrap their head around it i said, guys, gals, there's a three-year conference directly attached to this i am going to throw a monster multi-million dollar production.

when i see howe well or it doesn't go i am going to have to throw a conference that disproportionately impacts and does well. if everyone pays $9,000 like you said, you can imagine i'm amortizing $3,000 four-day ticket i spent months looking at every single conference day pricing. if i'm able to bring a 5, 7, $10,000 experience that weekend because i'm disproportionately over paying the best speakers of the world, the elons, the baracks, kanyes, whoever you're going to go with, you can imagine that token becomes incredibly interesting i'm going to bleed the rest of this year to make q1's veecon's 2022 the single most seen event and go to event every year which creates an incredible event. for me, this is about building the intellectual property.

this is about building my barney, my harry potter. you'll see that. it's around the things i talk about as gary vee. i'm exhausted. i don't want to be the front man. i want patient panda and candor cat and things of that nature. >> gary? >> yes >> i want to make sure i understand this. this is -- you're buying it and then you're going to line up the guests and figure out what the guests are ethereum is running hot, if something happens that it drops or you don't get the demand you were anticipating? does that mean a lesser conference, you figure it out as you sell >> no. the dollars come in. i have to deliver at what people are in at and over deliver i'm building economy, interest, demand, and brand and most of all my reputation online this is a project i have to work on constantly to over deliver on, not to mention i'm also trying, again, to build, you know, hannah bar berra or

disney these characters are things i'm going to launch -- >> modest expectations. >> yeah, but, you know, listen, everything i've done >> when i launched this agency i was a wine retailers and everyone laughed and i built one of the largest ad agencies of all time i want those expectations. why wouldn't i i'm also willing to admit defeat if i don't do it why not go for the jugular >> gary vee, you've got to come back got to go over some of this again. for me, maybe not everybody. i mean, i'm blown away and fascinated by it i never thought of it. i always said, what's next after twitter. what are we going to do? what's the next big thing? i had no idea. all of this built on blockchain. i know just enough about to be dangerous. gary vee, thank you. >> thank you. >> good luck. >> thank you. >> could you send me one of

those? i don't want to pay for it one of your best ones? three of us. >> joe, we can always get you a digital copy without the nft attached that's the -- >> i want the smart contract i want the -- i'm just getting used to smart phones, you know >> get you both. the battle brewing on capitol hill over the president's proposed tax proposal we'll talk about that and so much more after this (vo) while you may not be running an architectural firm, tending hives of honeybees, and mentoring a teenager — your life is just as unique. your raymond james financial advisor gets to know you,

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oh when june-- and stay a sleep longer. great shit that guy!turally yes! wait i don't remember that! it's in season 4 - don't tell me you haven't seen it! i watched season 3. you won't stay caught up for long unless you keep watching the best shows from hulu, peacock, starz, showtime, and hbo max, all year long. just say "watchathon" into your voice remote to add a channel or streaming service and stay caught up.

now for a look at the battle of taxes and the gridlock on capitol hill neil, want to thank you for this this morning why don't we start off talking about this where do you come down what do you think is likely to happen and what do you think about that pretty soon, if you add the price tag on the american rescue plan, the jobs plan and the family's plan, we're getting close to $6 trillion though it's obviously spread over multiple years. it would certainly not be plausible for an administration to spend all of this money and

not raise taxes. but, you know, this is a complex process. although many parallels are being suggested by the president's advisers with presidents in the past like franklin roosevelt or linden johnson, the majorities they had in congress were a great deal larger than the biden administration has so there's going to be a pretty complex political process. i can't tell you nor i think can anyone else how this legislation will finally look when it's signed into law. there are going to be some pretty ferocious taxes but also the legislative prosets itself gets done through reconciliation the thing is going to be pretty protracted those swing senators in the middle of the joe manchins are

going to wield a lot of power in this process i don't think it's prudent to draw comparisons with lbj who have massive margins of superiority in congress when he was president. >> just the idea that it's such a slim margin, but also in the house. and that might make the difference i mean, you might be able to i don't want to say buy off these senators and these congressmen, but you could put them in a position of giving them the things that are most important to them. maybe that's a swaying issue maybe it's not maybe you come down and they have an incredible bargaining power with how they shape the final outcome. that's what the street's counting on right now. investors are thinking about how far capital gains taxes are going to go up, how much other taxes are going to be increased, they're thinking that's the high end and there will be a middle ground i'm not entirely sure that's the case. >> and will have much more certainty about this

efp, the american family's plan includes doubling capital gains taxes, ending carried interest, expanding the interstate taxes above certain tlhresholds. these have big implications for the high earners, wall street folks. i think at the moment there's a sense that wall street's kind of not paying too much attention on the assumption that not much of this will get done i think quite a bit will get done, in fact. considering the scale of expenditure, it's inconceivable there sisn't going to be a prety significant increase corporate tax rate goes all the way up, but it's certainly going up >> in your new book "doom," you think the big cities are not over what gives you that confidence >> well, as you can tell from my funny accent, i'm from brittain. it takes a lot to kill a big

city look at london london was ravaged by plague, the black death, subsequent outbreaks of the bubonic plague from the 1330s all the way to the 1660s. it was boomed repeatedly in world war ii and it still bounced back to be one of the world's biggest financial centers. new york has never been subjected to so many beatings, but as i show in "doom," new york had recurrent outbreaks of cholera and yet the city bounced back it bounced back from a terrible period of crime that ran from the '70s through the 1990s it's hard to kill a city because there are so many big benefits to being in these clustered metropols, particularly for financial services it's not the same as pre-pandemic working from home has become very well established in a way that's unique.

we never could work from home before now we have something like 1/3 of all jobs that can be done just as well from home and nick bloom, my colleague at stanford, has some pretty impressive stats that suggest there's going to be a permanent shift for a whole lot of professionals to working at least part of the week from home so i sense it's not quite the old manhattan even after we sense that the pandemic is over, at least as influenza. >> i'm so sorry we're out of time on this i'd love to talk more about it the take on nici, that which does not kill us makes us stronger folks, if you want to see more of it, check out "doom, the politics of catastrophe. >> thank you, great to see you. we've got another big hour of "squawk" still ahead. we'll talk to galaxy digital's mike novogratz for the latest

crypto news. jennifer alba and anything vlahos and mary barra and lyft's co-founder john zimmer it's a lineup you don't want to miss big hour ahead right now coming up on "squawk. - grammarly business helps my company build higher performing sales teams. since simon's team started using grammarly business to sharpen their writing, we've closed more deals. learn more at grammarly.com/business.

good morning nasdaq futures bouncing back after a selloff yesterday. investors weighting an adp jobs data we're also watching the price of dogecoin because it is skyrocketing meanwhile, general motors crushing profit estimates in its latest quarter we've got an interview with gm ceo mary barra in a few minutes. making an honest buck or a lot of honest bucks. the honest company with the nasdaq trade we'll speak with the ceo and founder jessica alba final hour of "squawk box" begins right now. good morning and welcome back to "squawk box" here on

cnbc i'm joe kernen with becky quick and andrew ross sorkin got a lot going on u.s. equities are in the green bouncing back from the nasdaq pretty big selloff the dow indicated up 68 points that wild ride yesterday the dow dropped 300 points before coming back to end the day slightly higher. investors tried to parse some comments from treasury secretary janet yellen throughout the day. first, treasury secretary said she sees interest rates may have to rise, she said, slightly to keep a lid on a hotter economy she wasn't predicting higher rates and wasn't trying to influence the fed. we have a jam packed final hour. mike novogratz on crypto the honest company as we just said, jessica alba, the founder and ceo will be on gm ceo mary barra on the first quarter profits that beat handily. we have the president of lyft. becky? >> thanks, joe

let's get you caught up on some of today's top stories first up, president biden wants 70% of u.s. adults to have at least one dose of the covid-19 vaccine by july 4th. biden's administration is aiming for 160 million full vaccinations by then to help hit those goals a senior u.s. administration official said they will require pharmacies to offer walk-in vaccinations on the business side of things, some companies are still feeling quite a beth of pain hilton worldwide missed analyst expectations hilton continued to be hit by pandemic related travel restrictions although 97% of the hotels were open by the end of last month on the other side of things last month, caesar's is jumping revenue beat estimates caesar's said results continued to improve as the pace of

covid-19 vaccinations accelerate that stock is up by about 6.7% a positively dogged rise it says here in the price of dogecoin the cryptocurrency started as a joke in 2013 but it's not a joke anymore according to coin market cap. its total value, i don't need to cite anyone, it stands at $86 billion. more than fed ex and it's up sharply this morning actually back off a little it was above that. joining us to talk about what's going on here, mike novogratz. mike has a big announcement of his own. his firm is acquiring a digital asset infrastructure provider bitco in a $1.2 billion deal we'll talk about all of that, mike first, what do you make of what's been going on with dogecoin and the point has been

made here that maybe it's not a real positive for the rest of crypto, it almost drags down the rest of crypto because it's kind of a joke and not real and it makes you -- makes some people question all of crypto at this point. what's your opinion? >> listen, i think we all should listen to what dogecoin is saying that's the same thing when we heard game stop. there is a group of young people, a lot of them, that, you know, are singing out their voice loud and clear saying, hey, we're going to put our money behind this. there's some excitement to it and all of a sudden we did a report on dogecoin who would have thought galaxy digital is doing a report on dogecoin we put out a research report we called it the most honest shift coin a little help on the title there's something really pure about it there's no one developing on it, right? it is literally just a store

value for this group of young millennials and gen z. i worry once the enthusiasm rolls out no developers, no institutions but it's got the moniker of the people's coin it will be dangerous to be short, i'll tell you that much whenever i tell you that, i wish i was long i do think, you know, when you think about the full spirit of what this crypto revolution is, there's something pure in what dogecoin has done. it's a little bit of a middle finger to the system people are unhappy with the current financial system they just are. they're unhappy with the whole game feeling like it's skewed to the top 1% doej is around example of that. >> we're going to need a delay for you. middle fingers and other words that aren't -- i think they're cable ready. i don't know about that shirt. i'm more worried about that.

okay, you know what, you've got this acquisition can you go into that i know you want to talk about it what is bitco? what does it do for galaxy >> bitco is the second largest custodian. it has 42 billion assets under we get 400 more institutional customers where we can cross sell our products and they can cross sell bitgo to our customers. it's a marriage of west coast to east coast when you think of the crypto, it's blockchain and finance. we're goingfrom being a compan that invested in blockchain, that used blockchain infrastructure to one that builds blockchain infrastructure and that's as exciting as can

be >> to return to dogecoin, could you explain the difference between the way we think of bitcoin itself, you can do ether or any of the others, but we understand how the case can be made for bitcoin's store value and underlying value and the notion that maybe it's digital gold is there none of that with dogecoin in your view? you said you'd be scared to be short. would you be scared to be long i think you would be scared to touch it one way or the other. >> i wish i was long two weeks ago. all of these store of value clients, including gold, are social constructs, right it's invested with values, people say it has value. usually you invest something with value that has a long history, like gold, it has a huge infrastructure. all of the mining and 130

million people holding it up doge has its own community it's very speculative. they think it has more value most of it is a gambling value this group of people mostly young have poured in tons of money and built up a frenzy that this is a $50 billion plus ecosystem. i'm not participating on the long side. i think it's dangerous because once that enthusiasm dies, if it does die, can you have a long way down i don't want to discredit. it's shocking that it happens. >> we've heard -- it's just -- you know, we've heard tulip mania mentioned about bitcoin and crypto, for 13 years that's what we've heard. >> and people have been wrong for 13 years.

>> i know. you can make the case, as you just did, the network, all of the things >> i don't want to use the p word it's a younger generation. >> it's a dollar after dollar. i'm going to find value in other things i love gary vee. big shout out. if it's nfts, baseball cards, value is being prescribed to all different kinds of things now. again, it feels a little bit

crazy to me doge revolution is happening. that generation, this is their social currency in some ways >> are you going to watch "saturday night live"? i guess you are, huh >> this is the year of the dragon jacket. i was born in the year of dragons. big day here in galaxy it gives me extra strength. >> who knows what elon might say. that's what i'm eluding to. >> yes my market prediction is doge pizza saturday night you can probably sell it there >> right that's what i was thinking if he does other doesn't say anything, that can be the point. all right. so that's what that is, that's a year of the dragon shirt okay that's cool. all right, mike novogratz, thank you. i think you ought to sell one bitcoin and buy a decent audio system there we heard every third word. put in something where you're going to be on a lot, you say

something. >> apologies. >> see ya later. andrew >> okay. coming up when we return, an early look at the april jobs picture. new adp numbers next when squawk returns. for skin that never holds you back don't settle for silver #1 for diabetic dry skin* #1 for psoriasis symptom relief* and #1 for eczema symptom relief* gold bond champion your skin

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oh when june-- hit that guy! yes! wait i don't remember that! it's in season 4 - don't tell me you haven't seen it! i watched season 3. you won't stay caught up for long unless you keep watching the best shows from hulu, peacock, starz, showtime, and hbo max, all year long. just say "watchathon" into your voice remote to add a channel or streaming service and stay caught up.

welcome back to "squawk box. we're just a few seconds away from april's adp private pay number after a wild day for the markets with the dow down by as much as 300, closing up by 19 points, you can see the dow futures up by close to 81 s&p futures higher than 18 the nasdaq was the big loser yesterday. right now we are getting april's adp data u.s. economy added 742,000 new private sector jobs last month economists had been looking for 800,000 new jobs so that was a little below however, job additions for the month of march were revised higher that was up to 565,000 from the originally reported 517,000. the government's april jobs report of course is coming out on friday morning with eco economists looking for an

unemployment rate of 5.8%. total private payrolls for adp up 742,000 versus the 800,000 estimate joe? i'll send it over to you >> okay. adp -- are we going to do adp? we already did. coming up, our star studded final hour of "squawk box" rolls on honest company's first public trade today, joined by the company's ceo and by founder jessica alba plus, we've got some post earnings interviews. gm ceo mary barra and lyft's john zimmer.

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welcome back to "squawk box. the honest company set to begin trading today on nasdaq. founded by actress jessica alba priced the ipo at $16 per share valuing honest at $1.4 billion the stock will trade under the ticker hnst. joining us right now is jessica alba, honest company founder and chief creative and nick vlahos congratulations. this is a big day. i was thinking back, jessica, we spoke back at deal book in 2014 in the midst of this journey of

yours. i'm curious if you think about what that journey has looked like, sort of how you pin what's happened between then and now. >> you know, it really feels like i have three kids but this really feels like my fourth child and i feel like just every stage and every milestone feels a lot like raising a kid, you know you go through the motions, you go guide and love and put your heart and soul into making sure that there's the best outcome. so i'm just thrilled that i'm here today, i'm talking to you with nick vlahos he's been my partner over the last four years and this is really a pinch me moment >> hey, nick, let's talk about the stock a little bit, at least the valuation. i think there's lots of questions about how investors should be thinking about this company, and in particular

thinking about the growth. you had both a 30% growth over the last year. a lot of investors i think wonder how much of that was pandemic induced and whether that's sustainable and how they should think about that. >> yeah. you know, we're a mission driven business all about inspiring consumers to live a more conscious lifestyle. you look at the numbers and, you know, since 2018 you look at our core businesses actually grew about 19% and then this past year we accelerated growing it 28%. the key there is we're also expanding our margins, you know, since 2018 we've picked up about 1100 bases points of margin. this past year roughly 400 bases points of gross margin a lot of momentum from a top line perspective and margin perspective. we've got a really bright future. >> in terms of the mix of businesses, diapers and wipes,

the kids' business, jessica, you talked about having kids, i've got three kids, you've got the kids that's a huge part of the business that's 63% of the business right now and personal care products represent about 26% of the business how do you want that mix to look if we have this conversation a couple of years from now >> well, i think we will continue to drive our personal care business, our home business and it's just exciting because think when i first started the company it was definitely, you know, more focused around a certain type of consumer and now everyone is aware how they can live a different life. they care about safety and health and they care about sustainability, diversity and inclusion. all of these core pillars that honest stands for is something that gen z cares about it really spans across a huge

demographic and people that care about honest we will continue to drive all of the categories that reach people at every touch point in their life. >> in terms of distribution channels, i know you do a lot of business with amazon, how do you think about private label versus the other branded products versus others that are getting into this space in terms of just the competitive landscape but how much of it ultimately should be a d to c business if you will versus leveraging some of the other distribution platforms >> you look at the business right now and about 55% of our business is digital, about 45% is retail. where the consumer continues to gravitate more and more is through the ecommerce lens we love that we're an omni channel business and we're very consumer oriented. we want to make sure we are where consumers want to shop that's a shift versus the

historical models. we're really building this modern consumer business for the future because we've got the consumer front and center. when you look at private label and you look at some of the other brands, what we see from the data is as you look out over the next few years, the natural kind of clean categoriesthat w compete in are forecast to grow between 9 and 10%. the conventional players within the same categories are forecasted to grow between 1 and 2% there's momentum acceleration. we have tailwinds and we have the modern brand not only do we deliver against clean, safe effectiveness in our products, we make them accessible where consumers are shopping. >> jessica, i'm curious how you've thought about the ipo process. i ask because i remember talking to you about whether you thought you'd ever sell to a bigger company, like a procter & gamble and whether you'd go independent. obviously now there's spacs have

become a huge vehicle for this how have you thought about this whole process? >> i don't know if you could ever really wrap your head around it until you're in it nick and i have been in it for the last almost six months and it's -- you know, it's wild. it's like -- i guess i bring everything back to having children it's sort of like you're pregnant a long time and then the baby is born but then the real work starts once the baby's born where you're actually like raising the child. i feel like this is the moment where we really dig into this next phase of growth and this is, you know, really the beginning in a lot of ways for us. >> how do you feel about being the face of this brand you've actually turned this brand into something that's i would argue far beyond you personally yet when you go through the prospectus, one of the risk factors is you

it's you, your social media presence, it's your ability to get the word out and by the way, you spend a lot of time -- because i follow you on all of these things, you spend an inordinate amount of time on social media >> you know, social media has been a strategic marketing channel for us it is where we build community and from day one having that engagement with the community is core to one of our values and what we're building. and it is a very different tactic i would say than more traditional companies out there. so we will continue to be innovative in how we build community and we will be everywhere the consumer is we hope you come on back and follow your progress i should tell you, joe kernen is downstairs i don't know -- i hope -- joe's

right there, joe, you can say hello. >> i feel your presence. i feel your presence it's good. thank you for coming on. thank you for coming on "squawk box. i know it probably has been a dream your entire life, jessica, to be on "squawk box." here we are. >> how did you know? >> okay. >> thank you >> there will be a reunion great to have you on the program. we appreciate it as i said, good luck to you. we hope to follow the progress thanks >> thank you so much >> you bet becky? >> thanks, andrew. when we come back, ride hailing and a reopening economy. lyft's president john zimmer will join us live. and we have a first on "squawk box" interview with gm ceo mary barra. you're watching "squawk box" on cnbc, stay tuned our podcast "squawk pod" is up for a webby and we're asking

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we're just getting some breaking news from the treasury. rick santelli is here. he's got the details on that rick, good morning. >> good morning. yes. when we think about how much money that the treasury is going to need to borrow to run the u.s. economy, we normally don't think of increments of trillions of dollars, but the treasury nonetheless is going to quadruple the amount it needs in the next cycle to $1.3 trillion and of course what does that mean well, it means quite simply that these auctions that i like to grade about every other week are going to get significantly bigger as are all the t bill auctions that come every other week why does that matter ultimately when we talk about inflation, that's the big worry in terms of interest rates and should interest rates go up, servicing the debt would at some point very quickly get as expensive as social security on an annual basis. so when you think of issuance and you think about interest

rates, we need to think about it in the same light that we think about the nervousness regarding inflation, that the more paper we bring to the market, the more paper the eu brings to the market, the more paper india, the other countries bring to the market, the more somebody on the other end needs to consume and purchase this and ultimately that is going to be even a bigger worry ultimately pushing rates higher than the notion of inflation that most likely would accompany something like that. in the here and now it's a great thing that we're finding plenty of customers to buy our debt the issue is are china and japan going to be married to that dynamic for the foreseeable future and that's something we're all betting on indirectly. andrew, back to you. >> thank you, rickster appreciate it. coming up on the other side of the break, gm's chairman and ceo mary barra taking on tesla, evs, getting around chip shortages. so much to discuss

"squawk bo rur wh ry barra right after this

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welcome back to "squawk box," everybody. we're watching the futures this morning and after what was a down day especially for the nasdaq, dow finished a little bit higher but just barely dow futures indicated up by close to 70 points s&p up by 15 and nasdaq up by 61 general motors reporting first quarter profit that was well

above expectations although the revenue slightly missed estimates. our phil lebeau joins us and has a very special guest with him. phil, good to see you. >> reporter: good to see you, becky. let's bring in mary barra, chairman and ceo of general motors let's get to the questions people have. you not only beat the street by a wide margin but you are reaffirming your guidance for full year earnings on the higher end of what you've already issued earning 10 to $11 billion this year. how are you able to do that given the impact of the chip shortage >> phil, it's great to be here with you today and i really have to give credit to our team the work they're doing with the supply base. the engineering team, manufacturing, sales and marketing. we are really leveraging all of our creativity and ingenuity to understand what chips are we going to have access to and how are we going to be able to maximize them. we're focused on predicting our

highest demand vehicles and those we're strained to build more it's something that gives us confidence we do think q2 will be the weakest government year but then we see recovery beginning in q3 and q4 we just continue to work it every day. >> are you able to make up the volume that you're not able to make in the second quarter and first quarter? are you able to make up all of the volume in the second half of the year >> we're going to make up all that we can. i can't say that we'll make it all up especially when you look at how strong demand is especially in the united states. that's a huge opportunity. we're going to build every vehicle we can whether we can make up every single vehicle will depend on, you know, the whole chip supply. >> mary, you talked about strong demand i don't know if you've been by many dealerships as you're traveling around the detroit area, but the inventory is so

low at dealerships and it has people wondering for the industry, do we see a pull back in sales for now or june simply because they can't keep up with the red hot demand out there >> that's why we're so focused on building the brand. dealers are leveraging gm developed software that allows them to have insight into what vehicles are on the way. often a vehicle is being sold before it hits the tealer lot. we're also working incredibly with general motors, gmf our financing arm to work with customers if their vehicle is going to take a little longer, especially if they're coming off a lead it's looking for every creative solution to satisfy the customer with the strong demand that we have so we're going to do everything we can to sell every vehicle and keep every customer happy. >> mary, you're at record high transaction prices used vehicles are the a a record high are you seeing any signs of resistance in the market, even

on the new side for the dealers or the used side in terms of people saying, whoa, we think these prices have got to slow down here? >> i think when you look at our record average transaction prices i think that reinforces the strength of our full size pickup and full size suvs. when you look at the chevy silverado, the gmc sierra and the gmc yukon, chevy suburban and cadillac escalade, there's such strong demand for those products i'm super proud of what's happening at the affordable end when you look at the chevy trail blazer again, great vehicle and people can't get enough of them so it's across the whole portfolio, but the strength of our franchise truck and suv is what's driving the atps. >> but no resistance you're not seeing resistance where prices get so high and you're not seeing that and your dealers are not seeing that?

>> we're not seeing that we have a full product portfolio. we're really meeting every customer where they're at. >> real quick, let's talk about ev development yes, go ahead and take a drink of water as i ask this question here, when you look at ev development, the chip shortage, you said just a few minutes ago during a call with reporters, it's not impacting your plans for when you roll out the lyric as well as you're rolling out the hummer, the new bolt that's on the way. what's your perspective in terms of ev strength and demand that is out there do you expect it to perhaps be a little stronger than expected over the next couple of years? >> i really think so it's because of the focus that we have. it's not just having a great vehicle, although i'm driving the bolt euv right now in its final stages and it's an excellent product. i can't wait to get into the hummer you've seen some of the videos online what the super truck is

capable of and the beauty of the cadillac lyric we're working on the whole ecosystem to make sure there's enough charging outlets and people feel confident that not only the range of the vehicle is great but when they need to charge on the road, they're going to have that opportunity we're working hard to create an environment where people say i'm going to have a better ownership experience when i buy an electric vehicle. >> you talked about on the call super crews and the ability not only to generate interest but expanding it and there's also the potential for a subscription stream, revenue stream how much of that do you expect to see in the future with vehicles i know you have on star right now. as you see more and more potential, how much do you expect that to grow? >> we think there's a tremendous opportunity. we're working to frame that out. we're plan to go have an investor day later in the year and we want to do it face to

face we'll look to when we can do that safely. that will be a huge opportunity that we can continue the monthly subscription revenues building on the strength of on star and super crews, you know, it's a technology that once people experience it, they either must have it on their next car or they strongly desire it. we're having 85% of those customers with experience say that about it. that's a phenomenal technology focused on safety. it really is a significant feature. as we roll that out to more vehicles, i think we're going to see the opportunity where people select gm vehicles because of it as well as we troll out to have a subscription opportunity. >> mary, one last question the biden administration is getting pressure on a number of fronts to potentially raise or lift the cap on federal tax credits for electric vehicles. you obviously have already hit the limit so that if somebody goes out to buy a bolt, do you

think that it will be lifted that there's the potential that models sold by you let's say 6 months or a year down the road might qualify for an ev tax credit >> that's very important those that move first shouldn't be penalized for that. that tax credit of $7500 is significant in a purchase decision we want to make sure we've been one of the first with uvs on the road ev and euv we'd like that lifted and not penalize first movers. mary barra, thank you for joining us this morning on a day, guys, where gm not only posted far better than expected earnings for the first quarter but earning $2.25 a share and the street was expecting $1.04 one reason they are looking for

higher is because they are reaffirming their guidance between 10 and 11 3w8d joe, i'll send it back to you. >> i know we're supposed to be agn agnostic, not care i like what they're seeing in gm back at 60 bucks a share i just do. $80 billion market cap jim cramer joins us now. >> gm.

i just found her -- it was almost as if i said, you know what, maybe we're back in more ways than we realize so i totally agree with you. you want to buy gm car, if you speak to her, gm truck, and given the fact they've got best battery, very good ratings, i take joy in it i really do, joe >> people will move back to cities i'm out west and you do that in a car. that's not going to change any time soon. >> her tremendous note she had this morning it doesn't take long their battery technology being used by honda, it makes me feel like, geez, maybe that's worth half the price i've said that to mary a couple

of times just because it just bothers me immensely that here's a company that -- where there's no magic or alchemy. they've developed a fantastic battery and it matters tremendously it's backed up by actual technology >> it's good it's a good story. >> ford too, jim >> ford's got hurt more for chips than gm. >> unbelievable car, jim. >> unbelievable car. >> the technology, too, has come -- what i need to read is about this thick and i'm about halfway through it there's things that i'll never be able to use. >> my wife's on the list to get

the hummer the fact is, they're all sold out. if they ever get through, she's got one. it's an amazing truck. >> 6 cylinders better than v-8s. >> stuff's incredible. >> thanks, jim see you in a couple of minutes coming up, we're going to stay with this and speak with lyft's president, john zimmer

welcome back to "squawk box. more signs of a rebounding in the economy. this time from lyft. the ride hailing company reporting a smaller than expected quarter loss. joining us first on cnbc is the co-founder and president john zimmer great to see you and to see news that seems to reflect the return of some semblance of normal or at least we're getting there, tell us what you're seeing, and specifically sort of the distinctions that you're seeing around the country in terms of a return because it does seem to be honest somewhat inconsistent but it's interesting to look geographically >> sure, thanks for having me. we have an extremely strong

quarter. we're starting to see some really nice tail winds for ride share. it is for us a relatively broad recovery obviously places where vaccination is higher, where limitations on people going out are lower, we're seeing greater signs of return, but overall, quarter over quarter, we saw 7% increase in revenue. >> talk about the possibility of higher ride costs because that does seem to be an issue, and i got in the back of lyfts and ubers and it cost more than it used to. >> we're seeing rapidly increasing demand which is a good problem to have, at the same time, we're increasing incentives for drivers to get back on the road, drivers are therefore earning more per hour and typically, some markets all-time highs between $35 and $40 in top markets which can mean prices increase at certain times, as busy times for riders.

but overall we think that the market place will continue to get to balance over the next quarter or two and you know, coming out of the pandemic, it's kinds of the reverse of going into it, where we're now seeing rapidly-increasing demand. >> we have not had an opportunity to talk since you announced plans to sell your autonomous vehicle unit, of course, your biggest competitor, had done something similar before why did you decide to do that? >> so we, when we started that unit about four years ago, there were two strategic decisions, number one, we wanted to be the go to platform for autonomous vehicles we used to call that open platform we now call it lyft autonomous and number two, at the time there weren't as many well-funded and kind of far-along autonomous self driving system efforts so we wanted to make sure we had access to a platform now there are several efforts that are extremely well funded and very far along, and the new approach that we brought to mark

has been successful, it will have a ton funding from toyota and it was right to look at our autonomous platform and which takes advantage of our marketplace technology and fleet management to bring the best, safest vehicles to our customers. >> do you think that the time line changed in terms of how quickly this rolls out i mean i think so. conversations we've had, with so many others as well, two, three, four years ago, the expectation of how quickly this technology would actually emerge has been a lot slower no >> yeah, in fact, that's totally fair we were hoping it would happen more quickly but this technology is taking time, it's important to get it right. but it is coming and we're excited to be the best platform to bring it to everyone. >> and one of the things to ask you about, you saw the stock take a bit of a tumble when this happened

and there were comments from the labor secretary from the biden administration suggesting that gig workers really should be classified differently as employees. how concerned are you about that, given the debate that's happened all over the globe and of course right here in the united states? >> we don't believe those comments suggest any change in direction, from the government following prop 22, it's very clear where drivers stood, where voters stood, on the fact that they want independence and benefits and we're having extremely productive conversation, with policy makers at the state and local level, as well as at the federal level the primary classification policy is hand theed at the state and -- handled at the state and local level and i think we will have additional models to show that benefits plus independence is the right path forward in the coming quarters >> john, we're looking right now at an article that appears to have just come out from the "washington post," i don't know if you know about this, it says that the labor department is

rescinding a rule that made it harder for gig and contract workers to argue they were entitled to minimum wage and overtime protection, part of a push to undo trump era decisions that favored businesses and employers. so don't you think that there is a bit of a distinction or difference here? >> again, the primary classification policy is handled with the state and local level of course, the department of labor can put out their positions, that happened in the previous administration, we expected this administration to act differently, so none of this is a major surprise to us. none of this in our opinion changes the direction of where things are going and is not extremely surprising on our end. >> very quickly, just want to ask you, just one question on this, though, did it help when the trump administration put that rule in to begin with you got to think that there is

some impact that federal regulations would have, at least on how they influence states as well >> yeah, i think the federal government, and again, we have to have a law created by congress to drastically change anything, aside from what you're seeing here in terms of how things are looked at but i would love the federal government to put out guidance for states on how to establish independence plus benefits i think that is possible this type of thing takes time, especially at the federal level, it will likely take years. but at the state level, you will see, over the coming quarters, new models that are more similar to prop 22 >> john anecdotally i've heard from people who say that a ride that used to cost 20 to $25 is now costing 45 or $50 on uber or lyft, on either of these services just because it is harder to find people who are driving these cars i wonder if you could comment on

that is that true based on the empirical data you see because it speaks two two things first of all, how difficult is it for companies to find employees or workers, and second of all, inflation, those are two topics we follow pretty closely. >> sure, you know, based on empirical data, the anecdote you shared would be high, in terms of an average. i think we could see slightly higher at specifically peak times, given the amount of increase in demand we're seeing. but not to the degree you're saying and we're seeing more and more drivers though on the platform, they'd like ride share, because there is a social interaction, versus other options like delivery, and compared to what they can make at other jobs, seeing these 30 to $40 an hour earnings is something that i think will, on the drivers side, continue to increase in terms of drivers coming back on the platform, in the next two quarters >> john, we have an astute viewer who has tweeted in a question that i think is worth

asking, and he asks, why is the share-based compensation and insurance costs, which total over about $300 million a quarter, why are they not considered real costs? why are those adjustments given that they're about 50% of the revenue? >> i'm not sure i fully follow but maybe you're talking about the fact that we're talking about adjusted ebitda loss, being at the lowest point since going public of course, we look at all of the costs of the business and we'll be working towards full gaap profitability. but as we've talked to investors, we're pulling in our adjusted ebitda profitability, which was previously q4 into q3, and that's what we're focused on right now. >> okay, john, it is great to see you, congratulations, as things get better. of course, lots of questions about what happens next, but we hope to have you back, follow your progress, and continue this discussion

so thank you again >> thank you >> you bet dom? or i should say becky? >> let's go to dom he's got some morning movers >> you got it, guys. let's talk about the earnings movers, shares of hilton which are down on roughly about we'll call it 15,000 shares of pre-market volume, the hotel operator was at record highs, just last week, but it reports profits and revenues that both fell shy of expectations, it did though say 97% of its hotels were open at the end of april, so those shares off right now. next up, you have scott's miracle grow which is pretty volatile in the premarket trading up roughly about a percent or so right now, and call it 15,000 shares of pre-market volume. this is the fertilizer maker, it continues to benefit from stay at home trends, so watch those, it's up on a big earnings and sales beat, and then check out what's happening here, finally with tupperware brands, the market segments across the globe doing better today, and those shares up 10%, roughly 45,000 shares of volume, joe, people

continuing to use tupperware products i guess, amid the pandemic back to you. >> always good and the parties are so much fun. miracle grow, i should have thought of that. of course. that would go up, too, in the pandemic thank you, dom and andrew, becky, should we look at the futures, look at the 10 10-year, look at dogecoin, we can't see any of those things, bought are because we got to go. >> -- because we got to go >> we have facebook and what they're going to do about trump. >> should i get off of my space and get into that? >> in a few moments, a ruling whether to lift former president trump's suspension we will get that to you as soon as we can. in the meantime, good wednesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber future does have a bid, a day after the dow claws back from a 340 point deficit. the road map begin with the treasury secretary janet yelle