what we are expecting today in the early hours. the path forward we have an update on the reopening of broadway. sporting events in new york and restaurants nationwide plus, big news in the space race update on the spacex test flight and the auction on a seat on a july rocket launch by blue origin it is thursday, may 6th. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. this was something to keep an eye on the nasdaq has been down four

days in a row. that is the longest losing streak since october yesterday, facebook and netflix and amazon down 1% you had the dow setting a new record green arrows this morning. not major advances dow futures up 25 points s&p futures are up 3.5 nasdaq up 24 it wasn't just the dow setting records. we will look at the "squawk stack" in a few minutes. the treasury yields are yielding for the 10-year at 1.571%. that yield is ticking down we have been above 1.6% for several days it wasn't just the dow which set a new record look at what else is out there the transports setting a report close. we kick that off with the stack. financials and materials with a record close and industrials.

oil is something to check out. it pulled back a little bit. yesterday, during the trading day, it hit an intraday high of 66.76. it is up 3.2%. you have to keep an eye on that. energy stocks have been doing well guys, another day and another dogecoin we can't help but mention this down 2%. i heard brian talking about this on "worldwide exchange" earlier. if you put $1,000 in dogecoin on january 1st of this year, right now, on may 6th, it would be worth $120,000. >> yup that's nice. i was thinking about it in light of what we used to say about market caps for stocks when a certain number of shares change hands and if you multiply all of the outstanding shares by that price, you get to the

market cap if everybody decided to sell, i don't think it is really there that is what i think about dogecoin you know, not that many -- that's my explanation for how it is $80 billion and not $80 billion. that's the demand. that's -- >> meaning you think it could vaporize overnight >> it doesn't really have a market cap a lot like the major corporations in this country they had the middle finger -- i see what he meant. the middle finger at the establishment. that made it that's all part of it. then you have elon musk. >> i would make the point, by presiden the way, you can't buy all of the dogecoin at a premium. the reason you care about a

market cap is somebody could buy the whole company. it can't happen. it doesn't work that way it has been a strange apples and oranges. >> that made me think about bitcoin and $1 trillion. how many big people are 70% of that trillion and how if that were to change i don't know if that is the exact numbers. if it is concentrated with whales if you question the 80 for the dogecoin i don't want to get into this. it's thursday. don't tweet me i'm not saying anything. >> @joesquawk? >> yes i know this was good. moderna. >> let's bring in the update. a lot going on pharmaceuticals.

we'll talk about it. moderna with good news early trial data on the booster shot for those who have taken its vaccine. it generated a promising immune response against the covid variants in south africa and brazil generated a better response over the version currently available. those results are published online and have not yet been pieer reviewed the other big news yesterday was the biden administration saying it is now throwing its support behind waiving intellectual property protections for covid vaccines that could remove obstacles for the developing the vaccine in other countries.

scott gotlieb says it could take over a year. it creates the economic and philosophical questions of ip and philosophical questions in the country. interestingly, there is a unique point to be made that pfizer did this all on their own. invested all their money in it on their own some people have more time for moderna because they took government money to support their efforts in all this. when you think about all of the other variants and other things that may come over time that will need our pharmaceutical companies to step up and try to figure these things out. it is interesting to think about the incentives also the technology itself with mrna and how it can get used for promising other drugs. if you let this special sauce, if you will, out the door for

free, does that change that dyn dynamic? lots of questions. >> i was looking for guidance on it there are a couple of argument against it i want a better one than you can't control the quality of what they will be making and it would take too long to get up to speed on making the exact quality and efficacy you don't know how long that would take counterfeit versions that is one argument that it is not feasible the other is fphilosophically is it good and you alluded to it. "the journal" weighs in making companies less helsitant if they knew any governments could take away or change the rules in the middle of the game and say you don't own the rights on the other side, i you had to

say it in an emergency situation, it will affect us because of vari variants maybe there are special circumstances here that could cause you to change things >> i didn't read anybody else on this today because i wanted to think through myself and what was fair and the most important thing. i will say something that occurred to me again and again these companies did such a phenomenal job of coming up with this i can't believe we're at the point where we have 60% of americans who have gotten one vaccine at this point. north of 40% fully vaccinated. this is covid-19 it did not exist until december of 2019. i can't believe we're at this point. this is thanks to the drug companies stepping in and spending billions of dollars

like pfizer and j&j and other companies. i agree with andrew. how do we make sure they continue to report for the variants joe, you are right we need to be concerned with the rest of the world because it is a humanitarian crisis. it will come back if we don't deal with it is that the best way to do it? everybody make your own or ramp up the existing and send it over maybe find other factories that can make it in coordination. we have been doing that. one argument that dr. scott gottlieb has made with the situation they were dealing with the problems you have in terms of production. shortages and the road blocks we have seen may actually get worse if you are looking at other people trying to find the same

shortages of things and trying to ramp them up. there needs to be a coordinated effort to do this. there are so many things to think about. >> we had this conversation, andrew you know, we have extra astrazeneca stuff here you are welcome to that. the crappy that was your point. it it has -- astrazeneca has passed muster abroad. we have not cleared it here. send it over. >> maybe the answer is and reflects what becky is sugg suggesting if we manufacture more of it and you need the defense production act or also, by the way, charge rates a little more reasonable in some of the other countries part of it is the rate issue it is true pfizer is making an enormous profit off this drug they made enormous profit off this drug in the u.s potentially maybe more

allowances i know there is some given away for free or discounted rates maybe a better effort there. if it was manufactured here -- >> or raise money to pay for that maybe we should be doing that to pay to make sure these other places can get it. maybe we should be sending more and more of it think of that as foreign aid and in a big way to ramp that up, too. >> i have seen articles where they conflate earned revenues. they should get that straight. i have seen the incendiary media take where pfizer will earn $26 billion on it. after all of what you put in and everything else and to manufacture it and all of the other things that go into it, they should get it straight what the actual profits and total revenue. the update on the path to reopening.

in new york, broadway is planning to reopen at 100% capacity on september 14th signature tic tickets go on sale soon. a four-month delay to allow the performers to rehearse can you imagine not doing anything for a year and then try to do a show someone could get hurt also we need tourists to feel comfortable and advertising. i wouldn't know which show i would want to see. in sports, yankees and mets will seat in separate sections with capacity for vaccinated people at 100%. unvaccinated, 33%. you have to stay six-feet away all sections require masks >> how do you prove it andrew you talked about this pass

does everybody need to get it? >> i don't think i think people will use one of the apps that's very easy to do i mentioned it the other day i did it over the weekend. i did it within 90 seconds you don't have to do anything. you type in all of your information. they quiz you. i don't know if you had the quiz they ask your address and give you five addresses and ask where you did it and give you five invest versions which vaccine you took you pick that. then magically, you get a qr code and thing on your phone it is right. >> is there one app you have to use or a lot of different ones >> in new york, there is an app. i can get you the name here on my phone it is called the new york excelsior covid app. i'm sure you may want to know.

nys wallet is what it is called. if you got vaccinated, punch in your information i don't know if i should put the qr code up >> don't >> don't, don't, don't >> if you look there >> don't even do that. >> that's what it looks like >> we have to talk to gottlieb about this if you had covid and greater antibodies better than the vaccine. that's what we're talking about. someone in my family had antibodies and a syasymptomatic >> the trouble is you can't get vaccinated after two or three months after you had covid >> there shouldn't be any hesitancy to get it. if you have to get it, because you had it and had antibodies,

you probably wouldn't want to get it >> unless you deal with a new strain moderna deals with the booster shoot dealing with the new strain you don't have antibodies for the new strains? we missed the news on peloton. we will talk about that as a tread plus owner i have lots of views on that when we come back, we have ceos this morning ahead of updates on the reopening of the american economy and our way of life. supply shortages we talk to the ceo of 1 1-800-flowers and the ceo of dine brands and the uber ceo will talk about ride demand. we do it all as "squawk" rolls on >> announcer: this cnbc program

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paypal posting the strongest first quarter on record. above forecasts in the shift to online shopping boosted payment volumes. $285 billion in payments in the quarter. that stock is up 4%.

etsy shares are plunging the company's first quarter earnings of $1 per share beat estimates. revenue was better the company warned the value of goods sold on the site is part of the deceleration in ecommerce as we reopen programming note the ceo of etsy will be on "mad money" tonight. our next guest says she expects the leg higher in the value of opening trade we have the portfolio manager and senior u.s. strategist mona, good morning the wquestion i ask and you thik it is still a leg higher when you think out 6 or 12 months from now, you think economic growth is going to be slower than it is right now.

whether that is already baked into the market. >> absolutely. the markets tend to be forward looking 6 to 12 months out we have seen that since march last year with s&p up 70% off march lows. now we're starting to see really robust numbers coming out of economic figures as well as earnings figures we're really starting to see stagnation in the markets. ag again, we're thinking what the markets are looking at 6 to 12 months from now. we think yields could continue to grind higher. the fed may start talking about tapering assets and implementing that tapering process. of course, when you look at earnings and economic growth in the u.s., we could be facing a peak quarter in q2 this year we think economic growth will remain above potential for the

next few quarters, the rate of derivative will slow in that back drop, we expect markets to think about what works in that environment. >> let's talk about what works in that environment and what may not work in that environment we talked about the great r rot rotation i don't know if the great rotation may have already happened if it happened at all is there a second rotation to be had? >> you know, we think the second part of the recovery trade means you are more selective and active a big part of it has been done and it has been traditional in the reopening of the economy or recovery in the economy, you see the cyclical value stocks perform. we have seen that since november in the environment where yields can go higher and the fed potentially raising rates down the road

we believe financials continue to work well in the higher yield environment and higher rate environment. we think the biden administration laid out a pretty y aggressive agenda with industrials and energy and specifically clean energy. we are being more selective with the convictions lie with the 6-to-12 month period if you get draw down, we have not yet had a 5% or 10% correction in 2021 that may be happening or it could be coming to fruition in the next quarter if that does happen, think about where the convictions lies and the environment 6 to 12 months from now that is what the market will be doing. >> what do you think of the big tech names it represents so much of the s&p. i ask because -- some have not been out performing lately

we had a strange situation right here are we tapped out? you have two sides of the coin etsy coming in with numbers or expectations that things are going to get worse in the ecommerce land i don't think people have the same expectation of amazon you have paypal through the roof there are the different versions of digital >> absolutely. we think it is telling that a lot of the companies have reported phenomenal results and they haven't seen much price action after that. they have been flat. some have been down. it talks about fatigue in the market and rotation that is now being really bought into by retail players and insurtitutiol players. if you are a 3 or 5 or 10-year investor, a lot of the sectors are here to stay transition online.

it could be doing well because it is part of the biden infrastructure package if you get a correction in that space, it is an opportunity to get involved it is important for the balanced portfolio. keep in mind this may be the year of value. >> mona, i appreciate it >> thank you. >> good to see you hope to see you in person soon becky. >> thanks, andrew. when we come back, the potential impact of president biden's tax plan on the real estate market and investors. robert frank has a report next. as we head to a break, let's do "squawk booze news. ab inbev beat first quarter results even with closing down the maker of budweiser and stella announce that the ceo will step down in july after 15

years on the job the north america boss will take over that stock up this morning by 5% "squawk box" will be right back. >> announcer: this cnbc program is sponsored by flexshares trade funds. managed by northern trust. what if you could have the perspective to see more? at morgan stanley, a global collective of thought leaders offers investors a broader view. ♪♪ we see companies protecting the bottom line by putting people first. we see a bright future, still hungry for the ingenuity of those ready for the next challenge. today, we are translating decades of experience into strategies for the road ahead.

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welcome back president biden's tax plan could be a triple threat to the real estate market and investors. robert frank joins us with that story. hi, robert >> reporter: good morning, becky. the tax plan would hit

residential and commercial real estate because of the tax plan the 1021 exchang vefrters to roll from one property into another without paying any capital gains tax under biden's plan, they owe capital gains tax. that leads to the second which the capital gains would jump on to 39.6% and apply to the sale of those making more than $1 million in anyone year the sale of primary residence, you still get the exception of $250,000 per person or $500,000 per couple and the elimination of the step-up and basis on inherited property you pay capital gains tax on the gain even if you don't sell. only if your gain and income is over $1 million. the real estate industry already fighting the changes national association of realtors

coming out and sending a letter to janet yellen saying the proposals would reduce growth and reduce affordable housing and penalizing americans who have spent their lives saving and building equity. the industry lobbyists out to fight the measures >> robert, some of the changes seem like they make sense. others seem more punitive. i guess your view depends on where you sit. the 1031 in-kind exchange. that is a sweetheart deal that has allowed the industry to do well when you are talking about individuals who sell their house that they have owned for 30 or 40 years and if they make more than $500,000, they pay the heightened -- double capital gains tax essentially? that seems like it would hit

many of the families in the coastal areas that have gotten hit by s.a.l.t. and other places if it is your house, it is different in the industry that is doing this on a constant basis. am i off base with that characterization >> reporter: that is right going back to 1031 you had lee cooperman on you and andrew talked about making the system more fair. back in the tax cuts, 1031 exchanges were eliminated for every other industry except real estate that was under criticism as a special carve-out. step-up or capital gains is where real estate is becoming a victim, if you will, of a broader tax change which many people say makes sense like you said, could sweeten inherited property or families

who have owned the property for a generation or two. they will owe more tax the industry will go through piece by piece and pick out changes or a carve-out for the broader capital gains or a property that has been in the family for so many years, you maybe don't have to pay a tax or lower tax. >> robert, inflation has not been front and center for a long time think about what something costs 20 years ago when you bought a house and the dollar and what it is worth today you have to pay capital gains based on the value although half of the gains were eaten away by inflation. they will not index any of that. they will say that's what you owe. >> reporter: that's not just true for real estate one criticism we hear -- all of these assets you know, there was the proposal from the last administration that indexed capital gains

now step-up makes sense to say it is only 500,000 if it is over $1 million, over ten years, the amount of assets worth $1 million that number of tax and assets. that grows enormously. you are right. we are seeing inflation now and that could be an issue going forward with this tax. >> robert, question on 1031 for the professional developers. one rationale for doing it is because of the idea it creates an economic growth a boon to wherever the buildings are created and jobs coming in to do it this is the argument of stadiums and buildings broadly. there is truth to it the question is is there a way to incentivize the development of new buildings and like and renovations and the like without

necessarily the full effectively tax benefit that accrues not typically to the economy around it, but often times to the developer themselves >> reporter: that's a great point. you could say you are allowed a 1031 exchange if it is going into a project in the high unemployment zone or going into a project that creates more affordable housing the issue is we tried that with opportunity zones. we found rather than creating capital in that areas that we need the most, you float capital to existing projects around luxury projects in san francisco, new york and florida. without proper monitoring and enforcement, you are right that is the way to do it you also have to have enforcement and monitoring to make sure that people aren't gaining the system for that. s>> robert, thank you

great to see you i think we'll have more questions for you as we start winding through the process of the lawmakers play out and the lobbyists play in. we appreciate all your focus. good to see you. yes. news just out from pfizer. it will donate covid-19 vaccines for all olympic athletes and delegations at the upcoming summer games no word on how many doses that will involve the olympic committee said the vaccination is not mandatory for participating athletes this program will be done in full respect of national vaccination policies coming up, a big lineup of ceos tacking lking about with th opening. the ceo of 1-800-nflowers and th

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♪ companies are struggling to meet consumer demand on a number of goods due to the pandemic micro chips and chlorine tablets and ketchup and flowers. we have the ceo of 1-800-flowers. chris, thanks for joining us i don't think if you haven't kept up with what is happening about a shortage, can you go into it and what caused it when did it start? how bad is it?

welcome. >> thank you for having us it is an interesting time and we have a shortage right in the middle of the mother's day holiday which is an important holiday for everyone in society. this really comes as a challenge from last year when demand was cut back dramatically this time of year. i'm not sure if the farms knew how to plan for the comeback and demand strong this year. it is causing a bit of contention that caused with weather conditions has caused a challenge that we see in the floral industry today. fortunately, because of the size and scale we have and the long-standing relationships we have in the grower community, we are able to manage this and help many of the local florists to get the supplies they need and give us anticipation of the successful mother's day holiday. >> that's good not just flowers you would be able to maybe confirm this front page piece in "the wall street journal" about

berries. you bought a company to try to expand >> we bought sherri's berries. it has been a roaring success. we took a company stagnant growth and not making money. it is growing nicely double digits great contribution for us. the same thing there we have to work with the suppliers and build the relationship at the planning cycle. because of that, our team's ability to do that, we are ahead of the curve that is not impacting our mother's day holiday that is a testament to the operational team we have in place. >> growers thought there would not be demand because of the pandemic and then everybody is at home and wanting strawberries and no one had grown any it seems you can fix that pretty fast it takes a season. >> it takes a season and couple

of growing cycles. on the floral side, depending on the product. we stand as a company and great growth and momentum going into the pandemic accelerated into the pandemic. it gave us confidence to manage this and confidence to guide for q4 a double-digit growth rate of 10% to 15% on top of what we grew last year we see a great opportunity going forward. we guided double digit growth fo for next year and what we see in the supply chain and challenges we have and consumer confidence going forward. we have taken the business to a new level to grow from here. >> chris, a lot of companies benefitted people not going into flower shops. you can call and get them delivered. now, do you think that shift

will be maintained once things reopen or will you give back a li little is it onward or will you consolidate? >> onward and upward we look at a bigger and better and stronger company than one year ago it is because of the things we had to do and the challenges we faced throughout the year. this year gave us an opportunity to significantly grow our customer base tremendously we are seeing great behavior in that customer base it has given us to be the engagement company offering floral classes or charteurtie classes. you take the other big trend from the pandemic aside of the shift from offline to online

one thing we heard in the pandemic, we need to connect and express ourselves and build relationships. that's why we are so well positioned for future growth it is really exciting. >> i love the charteurite. i could use that course. chris, thank you thanks 1-800-flowers. what is the phone number again oh, okay never mind 1-800-flowers. it is like -- when we come back, get your mother flowers if that is the point, get your mother flowers you can call 1-800-flowers or go to the local florist meantime, the ceo behind the restaurant brands of applebee's and ihop will join us after the break. come on back

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still to come, we have an update on the reopening of restaurants in america ceo of applebee's and ihop's dine brands will join us in just a moment john payton. don't go anywhere.

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welcome back, everybody. the restaurant stocks are rebounding as the u.s. really gears up to reopen cheesecake factory, darden, shake shack and dime brands outperforming the broader market in terms of what they've seen with the stock market increases. dime up by 62%, check it out in fact, ihop and appleby's up and they beat the bottom and top lines pretty handily joining us is john pay the the ceo of dine brands, the parent company of appleby's and i hop. you're new to this job and this

is your first interview on cnbc. we want to welcome you here. watching what's happening here, this is indicative of what we see happening around the country as people start to get back out there with the vaccinations. what are you seeing in the stores right now >> good morning, becky thanks for welcoming me. what a great time for me to join dime brands and the restaurant industry i started in january and dine had a strong quarter what we're talking about here at dine, we've coined the phrase that we're now entering a restaurant renaissance in the u.s. by that we mean our guests, you and i and everyone who's been listening who have been cooped up in our homes are so excited to leave our homes and rediscover restaurants and that's what's happening. that's what we saw in the first quarter. the other thing i love about this idea of a restaurant renaissance, we've spent the last year here at appleby's and

ihop, rediscovering ourselves and meeting the new consumer behaviors out there. we've gotten better at off premise, invented new menu items and welcoming our guests back in a fresh and current way. >> how much of your business right now is people who are actually dining in the restaurants? how much of it is people who are still ordering takeout >> we have 2/3 of our business is -- in both brands is in the restaurant and about 1/3 is to go of that to go business, half is takeout where you or i come and pick it up and the other half is delivery >> delivery from your own sources or is this starting to use some of those services that will come and pick it up for you? >> it's mostly via the third party delivery services, and what's so terrific about that is the off premise business for both of our brands is a new business for us that really emerged from covid

so pre-pandemic both ihop and appleby's had 10% or less of their business off premise and since the pandemic began running right up through march we were about 1/3 off premise. and what's even more important than the 1/3 is the fact that the absolute dollar value of that off premise business is holding super steady and it has through march. so as americans are returning to dining inside of restaurants, this off premise business that our franchisees have built is here to stay it's incremental and it's profitable and so we're really leaning into the technology and the marketing and the operations to support this new line of business. >> john, we've been following inflation pretty closely and a lot of inputs. we've seen prices go up, commodities, food items. what has that meant to you and have you been able to pass that on to your customers or do your margins get hurt >> the good news is commodity prices are rising a bit because

the supply chain is lagging the demand, meaning that our guests are returning to our restaurants faster than our supply chain can keep up. so in our menu it's things like pork products, chicken, paper products for to go packaging that are driving prices up 1 to 2% when it comes to pricing, it's important to note that we're 98% franchised in both brands and so pricing is really a decision that's made locally by each and every one of our 300 franchisees and it's very dependent on the conditions in their local market >> what are the conditions telling you from those franchisees in terms of your ability to hire people, especially people who used to get more tips and maybe aren't getting as many when there's not as many in-house diners? >> so, first of all, we've been hiring for the last several weeks and months and hiring is a challenge right now. one of the benefits we have is that appleby's and ihop are a

fun place to work, they have a great culture. they are often the focal point of their neighborhood. between the two brands we have 20,000 team members we need to hire to meet the demand we're seeing in q1 and we expect to roll into q2 we're having national recruiting days for both brands the week after next big social media campaigns and clever things we're doing to identify franchisees they've got a lot of hiring to do >> well, john, thank you for being with us. it's really nice to have you on. we hope you'll come back soon. >> becky, i appreciate it. first time was really fun. thank you. >> okay. thank you. joe? >> okay. yes. yes, i'll remember that one. coming up, two big interviews coming your way as we begin to track the reopening of the country. ceo holdings and uber and there

is dara khosrwshahi will be on our show

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tale of two markets. what you need to watch sec chief gary gensler heads to the hill for the final gamestop hearing we'll speak with patrick mchenry about possible trading rule

changes and what it could mean for investors. plus, tech investor joe lonsdale calling the president's tax proposal nonsense. he joins us with his thoughts as the second hour of "squawk box" begins right now good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. showing u.s. equity futures at this hour, the dow, the s&p and the nasdaq all up. dow up 16 points, nasdaq up 23 points and the s&p 500 up a little over 3 points a couple of big headlines to bring you this hour on our watch. uber shares, they're falling in pre-market trading uber did report a smaller than expected loss but it missed revenue forecasts and uber

signaled that it will have to increase driver pay to get more cars back on the road as the economy recovers we've talked about this. you start to see prices creep up as well as a result. don't miss uber ceo dara khosrwshahi who will join us in the next hour to talk all about this in the first on cnbc interview. the global vaccine alliance gabi says they're welcoming waving patent rights that's a sharp contrast to what albert says. it makes zero sense. we'll be talking a lot more about that throughout the program as well. meanwhile, google will let 20% of the employees work from home and do so permanently. another 20% can keep their jobs and switch to different company locations and plans to let workers adopt what they're calling a hybrid work week working partly from home and partly from the office

a lot of experimentation going on at google they've always been a bit of a pioneer in the office culture work space becky? >> that is for sure. as the weather turns across the country, vaccination rates rise. offices work on reopening and the economy sees signs of life people are starting to wonder is retail reaping any benefits. courtney ragan is here she has much more on that. good morning, court. >> good morning, becky good to see you. many retailers don't report until later in the earnings season but there are signs that the recovery is in bloom new spending from master card shows u.s. retail sales shows in store and online grew more than 23% in april compared to last april's record shattering online growth and 11% more than april 2019 now spending at department stores is up more than 200% but also nearly 10% compared to

april 2019, pre-pandemic jewelry spending even stronger now many retail ceos have said that vaccinations are the key to the sector's recovery, but stimulus checks are clearly helping, too check out this stat from adobe they say when the american rescue plan was signed online spending surged. an extra $8 billion was spent between march 11th and 31st. that's nearly the size of a black friday ecommerce number. toys, furniture, bedding, video games and auto parts were the top categories in ecommerce. overall for april auto sales up 29% this year. that's stronger than 2020's growth and that included, of course, the surge in the beginning of the pandemic when all of us were going online because that was really our only choice adobe survey shows nearly 1/3 of shoppers do feel more comfortable shopping in stores than they did last year, but in store traffic is still well

below 2019 levels according to censormatic solutions. last week store traffic is 20% more below 2019 but -- excuse me, traffic is up from below 2019 320% up from last year when many non-essential retailers were closed so we're still lower from 2019, up from 2020, but that makes sense because the stores were closed so things are starting to recover, but we're not all the way there yet. becky? >> okay. court, thanks. good to see you. joe? >> thanks, becky moderna releases quarterly results. >> we've got quarterly results and some vaccine news from moderna. we'll start with their earnings. this is the first time in the country's history they've reported a profit on a gap basis. they said it came in at $2.84

per share. analysts looking for more. analysts were looking for 2.04 billion. the covid vaccine in the first quarter brought in $1.7 billion in revenue they are now saying they expect 19.2 billion in 2021 based on contract states signed for some of the vaccine news, the first look at data for teens in the covid vaccine, kids ages 12 to 17, they are saying they've seen vaccine efficacy of 96% in that group in a trial of 3,000 teenagers they ran they saw about 12 cases. these are pretty small numbers but 96% efficacy they say similar to pfizer, they plan to start a rolling application for full approval of the vaccine this month in the united states and they're noting in a release here that looking forward to 2022 they expect purchase agreements next year to be higher than they are this year because of the agreements

they've made with covax, the facility to provide vaccines for the low income countries and asia and latin america moderna down pre-market. there was the covid vaccine waiver news yesterday so a lot to digest here. >> 19.2 is a little bit higher than the previous -- 19.2 billion for revenue for 2021 is a little bit higher than they had previously indicated boosting that, but the shares are already down based on some of the other news? >> i'm actually not sure they were down before the market closed on the covid vaccine waiver news. they were up after hours on the news that the company had some positive booster data so they're kind of -- this is not a big year for boosters. >> no. 2%, 2.5%. >> meg, it's not on the earnings news itself, but given that you're our pharma expert,

vaccine expert and one of the most objective people i know, just help us understand on this ip question taking us -- taking no sides on the philosophy issue of ip, the practical argument that effectively the vaccine would not be able to be manufactured in any kind of speedy capacity and it would take more than a year and, therefore, this is sort of an irrelevant issue to be raising that's what the pharmaceutical companies are saying, and the question is is it right or is it bogus? >> you know, whether it would take a year is a question, but one good comparison might be how long it's taking merck to get up and running to make the johnson & johnson vaccine. arguably that's not the same technology it's not an mrna vaccine but of course merck is going to be not just bottling the j&j vaccine. it will take until the end of

the year for them to make the drug substance for the j&j vaccine. these are two major companies in the united states working together transferring all of the intellectual property and know how and everything you need to be able to make a vaccine. objectively speaking, it does take a long time to be able to do this and that's with full cooperation. the issue here is going to be, yes, it's going to take time they need to build the facilities and full cooperation is a major question in terms of whether pfizer and moderna are going to want to help with this kind of thing and also access to you raw materials could be a real problem too. >> supply constraints already for raw materials. who do you want using these very precious precursor materials someone that's done it and knows how to do it or someone taking a shot andrew, on the philosophical side, i just want to point you to an article that i was just -- you know, i almost finished it it's in the journal about the oxford vaccine, the astrazeneca vaccine, and how they blame

it -- you know, it's the journal so they say it was actually stakeholder capitalism which caused the debacle, but their point is that the university, not astrazeneca, wanted to do it with no profit incentive, wanted to do it to -- >> right. >> -- divorce it from pharmaceutical input, therefore, no one knew how to commercialize it the university had no one there that had ever commercialized something developed in the lab i mean, i know pharmaceutical companies have their -- you know, they have a hangover from things in the past maybe, price gouging, whatever you want to look at, but you may need a professional, someone that has a profit incentive when you're trying to commercialize it they tie the whole -- that adds into the fill low could have call debate. >> they tie the failure of that droug that issue i think there's a lot of issues there. becky wants to jump in. >> actually, i had a question for meg.

i don't want to cut off your conversation, but, meg, while you're here, somebody pointed this out on twitter and it's a valid point, just how long companies like moderna had been working on that mrna platform because they had put in that work ahead of time is why they were able to pivot pretty quickly and jump to this idea of very quickly developing the vaccine, and i think it was somebody at biontech, the ceo there, who was able to sit down and figure it out in a matter of hours because he had already spent so much time on mrna trying to fight cancer is that an accurate representation >> yes these companies had already been working on the technology and so they knew how to design an mrna vaccine and they were able to design them fairly quickly i don't know about hours, but of course moderna worked with the nih getting the right construct for the vaccine. it was because of the work they had put in for a decade beforehand that this was able to go so quickly. on the covid vaccine issue,

someone made the argument if we did want to ramp up supply around the world there could be a way to invest in building facilities around the countries and incentivizing the companies that know how to do this to help actually with the tech transfer and knowledge transfer just as you were talking about with oxford astrazeneca pairing up, someone said that's a good model that could be incentivized, not just waiving the patents but making the investments to build up capacity around the board >> meg, thank you for helping us through this i'm sure we're going to be talking and debating this issue with you and others for quite some time. meantime, a lot more coming up on "squawk" this morning another hearing on the hill about gamestop and this one could be key for investors the panel will make recommendations to the sec on possible regulations or rule changes. we have a preview of that hearing next later, facebook oversight board upholding the ban of donald trump but could the decision backfire we're going to hear both sides

of that argument with jon fortt. "squawk" returns right after this

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able to present the policy guidelines this time joining us with more, north carolina congressman patrick mchenry. he's the ranking member of the house financial services committee. congressman, it's good to see you. stock never did go back to 20. it's still up with a very high valuation. i don't know if it's high. a lot has happened now we know, you know, that the gentleman that all the hope is being placed on, the chewy founder, installed some new people trying to transition it now to an emodel and i don't know do we need a hearing the market is working well people who were in early, maybe they were on to something. who's to say >> it's capitol hill so i don't think this is ever about gamestop or reddit or reddit users. it was about the attempt to change market structure. i don't think -- that's much

more about a policy agenda or an ideological agenda among hill democrats than it is about the realities in the market. and, frankly, the policy that they attached to the hearing, they want to discuss they attach to the first hearing before you had a single fact about the nature of the gamestop trade, we wanted that. this is all about changing market structure, regulating differently, in fact, pushing retail investors >> going back to the early days, i think viewpoints have changed given the point that i was making before. is there less of a -- an inclination to say, wow, we've got to do something here to stop this at this point, that maybe it was even among democrats, that it was the market at work >> yes yes. this was, you know, a singular

trade that retail investors are in the market like never before. that on balance is a good thing when your constituents want to be involved in the capital markets and like what they're getting and the choices that they're getting. i think that slows down the, quote, unquote, machinery enough that skeptics can start asking a lot of questions whether or not there's a need for some major market change like with my democratic colleagues were talking about with banning payment for order flow which has resulted in zero commission trade for retail investors and on average i think retail investors benefit from that i think there's a slowdown in that profit thankfully and cooler heads have prevailed. >> talk to you about so many things with gensler. is there going to be a discussion of crypto today, do you think? >> yes. >> does anyone know -- we know he's an expert what kind of questions would you

ask him? what would you hope to hear from him? >> well, there are a couple of things a number of my republican colleagues will treat this, as i will, as the first confirmation hearing by chairman gensler, and so we have a lot of questions about the agenda of this sec chair. we know there's a lot of discussion about his tenure at the cftc, but for my focus though, i think there's real opportunities around small business capital formation and crypto currencies, around digital assets that we can actually achieve in bipartisan results and actually have some consensus driven policy making i'll spend some time this morning asking chairman gensler about the nature of those opportunities and seeing where we can actually find some consensus. that was my hope, where we can work on consensus driven items first and more controversial things separate. >> i think we had -- talking to

the president of lyft when we saw this department of labor, a trump era rule would have made it easier for gig economies to classify workers as independent contractors. you're going to reintroduce the gig workers equity contract. will that help >> yes there are two things at play here first, ab-5, which was the california initiative that was rejected by the voters that would refine gig workers, contract workers as full-time employees. and even the level voters of california rejected that yet the biden administration is trying to attempt to get a similar rule at the federal level that tells you how extreme they are for the unions and how anti-technology some within this administration are i think that's problematic what i think is we should go a different direction.

we should not only embrace the way work has changed, we need to ensure those workers in this change environment get equity just like office workers get, just like c suite workers get and whether it's doordash going public and those working in the office versus those dashers making that app work, i think those dash ers have been given equity and they can own the great companies they work for. >> andrew just made a point. >> i don't even need to hear i just know -- where am i going to the right or the left?

my question to you is how do you feel about workers who actually have turned these jobs into the equivalent full-time j jobs, meaning drivers working 35, 40, 45, 50 hours a week and do you think of those workers a different way than workers who are doing this in a more part-time way 5, 10 hours a week they are working a full day's shift relative to the others, should they get benefits and not the others

is there a middle grounds here >> i think they should be given an option. in my district we have 20, $25 an hour jobs with full benefits that don't do background checks. these jobs are being left unfilled we have the hotel industry in western north carolina where they have one hotel owner owns a couple of small hotels he has -- he needs to increase his work force by nearly 50% ant and he's offering $20 an hour which is a living wage in my district there are a number of jobs that are being left unfilled with pay, with benefits that are commensurate with a living wage. so when you raise this issue of gig workers, maybe there's a workplace flexibility and once my kids go to bed. i talked to one group of drivers who said the workplace, maybe

that's worth the tradeoff, but i think we need to have choice rather than being mandated by the government >> congressman, fair enough. we will continue this discussion with the ceo of uber in just a little bit we appreciate it we look forward to that hearing today on gamestop and the first time we will be hearing it coming up when we return, did facebook's over sight board fail that's the question cnbc's jon fortt brings us both sides of the argument right after this. then we have rocket ceo jay farner on the top housing market and the mortgage business and then later booking holdings ceo on the reopening of america and the outlook on travel so much more right here on "squawk box" when we come back. time now for today's aflac trivia question. what year was the federal reserve system created the answer when cnbc's "squawk box" continues

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now the answer to today's aflac trivia question. what year was the federal reserve system created the answer, 1913 the first fed chairman was

william gibbs mcadoo who served from december 23rd, 1913, to august 10th, 1914. yesterday we got facebook's oversight board's long awaited ruling on donald trump's status with the platform and the decision was to not decide so is the oversight board a joke that's the question jon 230ir9 is here to weigh in on hey, jon. >> yes, the oversight board had one decision they come back with maybe? so the board ruled it facebook was right to suspend but not indefinitely and kicks the decision back to facebook. six more months and we'll probably do another round of this let's not do democracy theater facebook is a controlled company. there's only one vote that counts, mark zuckerberg's. facebook has shifting rules that is ducking responsibility to chop up the body poll

particular this whole back and forth. facebook has enormous influence over communication globally. there aren't any checks on this power. this faux supreme court was supposed to do the job and it just threw in the towel. >> so the oversight board lost credibility by not making a definitive decision on donald trump? >> becky, on the other hand, take a closer look here and the oversight board gave us something better than a decision on donald trump. it gave us a decision on facebook's fairness. the board said, facebook what you did with donald trump isn't fair you can't have indefinite suspensions. either kick people out or suspend them and let them know what they can do to come back. think about that facebook said to the board, rule on this decision for us and the oversight board said, actually, we're going to rule on your own decision-making process. fix it you have six months. for years, pundits, governments, others have been criticizing facebook saying the rules are

unclear, enforcement is incon sus tent facebook has shrugged that off they have major influence. not power. mark zuckerberg has the power. they can press facebook for transparency that's exactly what they did >> joe bn, do you think this bod is going to exist five years from now >> i have my doubts but maybe not for the reason a lot of people think maybe not because they're ineffective but if you read through the board's decision here, they're not paying a lot of deference to facebook and they're critical of even facebook's lack of response to some of their many questions about facebook's process here. they're actually putting the pressure, i think, on this organization >> maybe it's true if you make everybody mad you're doing something right. >> well, we journalists like to think so. >> jon, thanks good to see you. still to come on "squawk box," shares of rocket companies are under pressure after missing on earnings for the first

quarter. we'll dig through those numbers. uber out of results. this was after the bell. yesterday here to talk about the company's growing delivery business which helped. we'll have much more with dara khosrwshahi. may is asian-american pacific islander heritage month. all month long we'll spotlight our workers. here is "new york times" reporter ed lee. >> you always have to speak up what does that mean? you know, if you're seeing an incident of racism, if you're seeing a sleight, not just against yourself or other asian-americans, but against any minority group, speaking out and having alliship with fellow people of color i think is incredibly important and necessary for the future oh, i've traveled all over the country. talking about saving with geico.

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welcome back to "squawk box. i'm dominic chu. the outperformance of the dow industrials, blue chip stocks,

value oriented ones. you can see over the last week the dow industrials posting a modest half percent gain but it's more than the nasdaq composite which is off by nearly 4% the white line standing out among the major three indexes. some of the pre-market movers related to earnings. some of the themes developing around travel and leisure. viacomcbs up more than 2.5%. they're seeing more broadcast affiliate fees and seeing their results. wayfair, they're posting better than expected results. concern whether they can be replicated norwegian cruise line, questions whether or not you can restart sailing out of u.s. ports. seaworld seeing over the period. one more to watch here this is now the ark innovation's etf's first close in months now. talk about another 1/3 of 1% in

the pre-market trade many of the stocks that go into the etf are down over the course of the last several weeks on some of the selloffs watch the ark innovation still up about 100% over the course of the last year. the pre-market trade coming up, the reopening and quarterly results. rocket company ceo jay farner joins joe, becky, andrew to talk about the housing market coming up after the break hey, dad! hey, son! no dad, it's a video call. you got to move the phone in front of you

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rocket companies reported first quarter earnings after the bell they closed more than $100 million in home loans after the b first quarter. joining us to talk about all of this is jay farner he's the ceo of rocket companies. welcome to being a publicly traded company this is fun, right >> good morning, becky fun? i'm not so -- >> let's talk about these numbers. go ahead not so much fun right now? >> i was going to say, we had an incredible first quarter, over 100 billion closed incredibly proud of the team more than double the q1 of 2020. strong margins and that's all we can do is continue to develop our platform and grow and i

think in the long runs things will take care of themselves. >> jay, looking at your stock, we'll talk about it in a moment. trying to understand why the stock is off 13, 14% this morning, part of it must be the second quarter guidance? you had incredibly strong numbers. you did miss on a couple of metrics for the street for the current quarter but maybe it's the guidance where you're looking at closed volume with 8$82.5 billion to $87.5 billion what do you think is happening is that what part of this selloff is in regards to if there's anything that disappointed you, what would that be? >> yeah. absolutely as we go through the 10-year treasury ruling out. that starts shifting and changing to 50% closings that

are not interest rate sensitive and so this is an opportunity for us to lean in, grow our market share, invest in marketing but you're always going to go through the transitional periods if you look at the run rate, 85 billion, let's take that as the midpoint, over the course of a run rate period, we're heading for what will be or could be a record year in 2021 in closed loan volume. all of the right things are happening but as we get to more normalized margins i think the street is just digesting that. we're going to stay focused on the things that matter the most, growing our platform and it's based on the lifetime value of a client our retention rate is 91%. as we add others, rocket autos, rocket loans, rocket homes, those things will pay off in the long run that's what we're here to do is build a business that will continue to grow month in month out, year in year out over the long run. >> let's talk about what you just mentioned

50% of your loans are not interest rate sensitive. how do you get to that point because you don't disclose how many are new purchases and how many are refinances and if there's a ding or a reason that the shorts will come after you, that has been one of those reasons. they want to know more about that, if it's more mortgage refin refinancings, those would much more likely dry up if rates have to decline how do you get to that number? >> we look at loans where we help them buy a home, life changes, those sorts of things we're very good at marketing to and helping clients in those situations we're the second largest retail purchase lender in the country as you know yesterday, we set a goal to become the largest purchase retail lender in the next 24 months that's our biggest opportunity we're in the low single digits in market share for purchase at the second largest in the country. when we think about rocket homes, endless listing site, agent network, title company,

appraisal company, our rocket mortgage application that's built for purchase you put all of these together, our ability to grow market share in purchase is enormous. that will get us the growth we're looking for. when you add all of the things together, that's where the 50% comes from it will be beyond that >> are you selling more of the loans that either the refinancings that you do or other things i asked because i refinanced a loan with you guys over the last quarter. you just sold it to fan any micanymae we'll securitize the vast majority of our loans. we're noticing a great pickup in the more proprietary products we've built. our smart jumbo product is something our securitization group is working on.

fannie is making changes when it comes to second homes, vacation properties which will give us another opportunity to lean in and do some of our own products as well. that is shifting and changing. remember, we service the vast majority of our loans. we've got about 2.5 million clients on our servicing book. when i talk about the platform and where it's going, those clients enjoy their experience with rocket so that's why our rocket auto business was up 65% quarter over quarter we've now got a run rate gmv run rate in rocket auto is over $1 billion a year that business is growing rapidly. our loans business, homes business is built on the platform and the 2.5 billion clients and growing that we're adding to the book whether we securitize and sell or hold, the important thing is that that platform and tha lifetime value of the client continues to grow. that's how we're making our decisions. as we go into the second quarter, third quarter we'll keep making the decisions based on the lifetime value of that

client over time that we can capture by keeping them in our servicing book. >> let's take a look at the six-month chart. you guys have been a favorite of the reddit crowd especially when you had high short interest. it was 38 or 40% you look back two months ago a day your stock was up by 70% it chased out shorts more like 7 to 8%. kind of living with this volatility, what does that mean? what has it meant for you all? and how do you manage through some of those things, jay? >> yeah. so great question, and being a privately held organization for 35 years, you know, dan gilbert, we always talk about the fact that we -- his famous line that dan uses, never sell your stock in the flamingo, meaning everything we've been building is for the long term, for years and years to come. that's what our 24,000 team members are doing, focusing on how do we transform the industry how do we change home buying

we try not to pay attention to the day-to-day movements in the stock. now is a great time for longer term investors to buy and hold the stock, and i think that's what we're seeing right now. when we talk about strategy, we talk about the next three years, the next five years, the next ten years and what we're doing to transform the industry. i know because of the tech platform, we just signed bryson dechambeau here in detroit we're thinking long hall, what makes our business special and let's invest in those areas and block out the day-to-day movement. >> the price was double where it is right now just, again, when the retail investors really got involved and chased out some of the shorts, you didn't sell any stock around those levels, did you? >> no. no the only additional sale that we did, as you probably know, was about a month ago when dan announced half a billion commitment to the city of

detroit. philanthropic giving at that point in time we did a small sale to help support that. we are long holders in this stock for all the reasons i've just mentioned couldn't be more excited in fact, one of the things we just witnessed was a 300% growth at rocket homes, which is incredibly exciting. all of those plans we're putting in place to see this company grow over the long haul are working. we're going to keep working and move forward. >> jay, thanks a lot for your time again, welcome to the public markets. >> thanks, becky >> take care. coming up when we return, palantir's co-founder joe lonsdale you have to hear what he's got to say why he says raising capital gains tax is nonsense but his rationale is fascinating

welcome back to squawk tax plans with a hype. it's increasing revenue. the next guest says the proposal may do the economy more harm than good. joining us is joe lonsdale, founding partner and palantir's co-founder joe knows where i come out on this over the years. he wrote a piece about two years ago now, i think, about this issue. probably the most compelling argument i've heard. it's actually a little bit different than some of the sort

of standard arguments around capital gains tax. i'm hoping, joe, you can explain to the audience the idea of the lock-in effect that you think capital gains -- an increase in capital gains creates in terms of the efficiency of money getting to the right places. >> good morning, andrew. a lot of people right now, they're really focused on how much is it fair for the rich people to pay. you don't want to break the system on that it's important that capital, just like people, can move to higher return areas. when people have extra capital, if you raise the capital gains tax too high, then their incentive is to keep it in existing assets and not move it to new assets. if you move it, you create higher growth and work on new things with building the economy. if you have a rate that's too high, you'd much rather not go to the higher growth area. you'd much rather keep it where it is. great forexisting companies and not great for the innovation economy. >> joe, what do you say to those

out there who say, look, there's so much liquidity. so much cash floating around and that no matter how much money you have, you're always going to want to go the higher growth opportunity and, therefore, once everybody's paying the same amount of taxes across the board, it's sort of a level playing field and, actually, this issue doesn't matter. >> well, there's -- listen, there's a lot of moderate economists on the democratic side who model this out. the cbo says that if you put capital gains taxes above 28, 29% you start to get less revenue. most moderate groups modeling this say if you raise to 43%, you'll get less government revenue. it's not a debated thing this is the mainstream view where the higher the taxes go above a certain point, the more they destroy economic activity the moderate people in the previous presidential administrations on the left will tell them that this administration seems to have kicked people out

they believe in mmt and don't care about what the economic modelers say, which is very frustrating. >> joe, what do you think the answer is here i think we both all want the same thing we want to create a system that can self-perpetuate and create remarkable growth in the country and we can all talk about trying to take costs out, and we should, but at some point it also appears that we probably need to create some more revenue. the question, of course, therefore, is how do you do that >> especially right now if we're arguing we need more revenue there are ways you can have wealthy people pay more without being penalized for growth and reallocation of capital. there's progressive consumption taxes. you want taxes to be scarce. there's a lot of unused land in major cities tax that there's all sorts of ways if you want to tax rich people for using beyond a certain amount of carbon, that would be fine for me taxes shouldn't be taxed to the poor if we're taxing the rich, let's

tax in a way that doesn't reduce economic risk. china has capital gains that are 20%. they modeled out is that's how you become a wealthy country let's go after the rich in smarter ways >> one of the ways that some people want to go after the rich, specific version of rich, is carried interest, which impacts your business venture capital and of course impacts the private equity industry. where do you land on that? >> obviously i'm biased. i have my own personal biases. the thing about carried interest, if you were to tax carried interest, the incentive is for everyone in the industry to use their own money and to manage less of other people's money and that would be a negative thing overall for up and coming people. for me, i could borrow money, use my own money it would hurt my firm slightly

i think private equity plays a positive role in the economy that's a debate we have to have. i don't think people say this is how venture capital creates jobs. >> why that industry or your industry should be -- should have a better tax rate than, for example, you know, what i do i'm not saying what i do is so great either, i'm suggesting that my income is taxed at ordinary income. your income, i would argue, should be taxed -- not for the money that you've invested if you have invested your own money, of course that should be taxed at the lower rate to the extent we have lower rates >> i thought the last compromise they made was quite good they pushed it where you had to be investing over the long term. right now it's three years because you're creating wealth in a capital gains like manner where you're reallocating the wealth the same way you're reallocating capital gains if you want to make that three

years, four, five, six, seven years, i think that could be very reasonable too. i think long-term investing should incentive advise the economy overall. if you are creating wealth, that's a very healthy form of building and it should be taxed in a capital gains like way. that's where most major economies have come down, because of how that works. >> we're going to have to run in a second but i can't let you go without a comment on dogecoin. we always talk crypto with you what do you think? >> you know, if elon decides he wants to make something, a currency on mars, i bet you he could do it and i bet you there's a good chance dogecoin is going to be around for a while. >> you do? >> if he wants to make it something big. there's no arbitrary -- i mean, dogecoin grows at 2% a year. bitcoin and ethereum are quote unquote sounder money. a lot of people believe money should be growing slower over the time so i don't think it's as crazy as it sounds even though it is

dog money. >> joe lonsdale, love the library, by the way, that you're sitting in it looks real. nice to see you. we'll talk to you. >> nice to see you. >> thanks. coming up, two big first on cnbc interviews. booking holdings ceo glenn fogel joins us after that company's results were released last night. we'll break down those numbers, talk travel and demand next. then later uber ceo dara khosrwshahi joins us to talk about the growing delivery business about the rpeng, eoni much more. stay tuned, you're watching "squawk box" on cnbc

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good morning markets versus strengthening economy. tech shares are on a losing streak all of this amid gathering inflation fears and a healthy jobs report tomorrow what's the best way for investors to play the reopening? two ceos are weighing in on recovery this hour we have bookings holdings glenn fogel and uber's dara

khosr khosrwshahi. they're hoping they will donate doses for olympic athletes we'll bring you up to speed as the final hour of "squawk box" begins right now. good morning welcome back to "squawk box" on cnbc i'm joe kernen along with becky quick and andrew ross sorkin the dow has turned positive. it's up about 41 points. as you can see, it was up yesterday but the nasdaq wasn't. nasdaq looking for some footing here up about 20 points, 21 points and the s&p indicated up 4 and change then the 10-year, here we go back below, at least it was earlier, back below 1.6. 1.57 earlier 1.58 right now

stable >> that it is, especially relative to what we see in just about every other market let's get you caught up on covid-19 vaccine headlines citing clinical trial data, a booster shot generated a promising immune response for the south african and brazilian variants a different variant had a better immune response against the south african strain moderna reported first quarter earnings and you can see the shares if we check this out are lower down by 6.6% revenue fell short profit beat estimates and the company raised the 2021 sales forecast for the covid vaccine by more than 4%. of course, you have the broader issue with what's happening with the administration and throwing its weight behind the waiver for intellectual property for all of these vaccinations we'll see what happens with that finally, the international olympic committee says that

pfizer and biontech will donate vaccines to inoculate athletes those are set to open on july 23rd that's also -- let's show you shares of uber check things out right now you'll see that that company reported a much smaller than expected loss for the first quarter even though revenue missed analyst forecasts uber indicated that it would pay drivers more to get cars back in service as the economy rebounds. you can see the stock up by 3.8% we'll be talking about all of that with ceo dara khosrwshahi coming up in a little bit. investors watching washington today new sec chairman gary gensler will testify in a hearing focused on gamestop. he is expected to weigh in on a variety of topics important to investors including the practice of payment for order flow and volatility in cryptocurrencies andrew >> thanks, becky meantime, a new record for the dow but the nasdaq seeing a

four-day losing streak let's go over to mike santoli who joins us with a look at what's going on in the markets below the surface and maybe some of those headlines as well, mike >> yeah, andrew. really a little bit of an uneven performance under the surface. if you take a snapshot, it's been going sideways. flat lined for the last three weeks back to mid april. that's certainly not a negative thing in itself but it shows you a little bit of loss of energy, a little bit of consolidation. below the surface, the dow is hitting a new high look at the nasdaq composite over the same period and you see it's a little bit more of a tired looking, ominous, we have this big peak, we couldn't get over it, now it's looking like it's rolled over again looked like a pretty urgent megacap growth it's a strong preference for things like inflation b

benefi beneficiaries. this is not necessarily a lost cause. as you can see right here, things have sort of solidified found its footing over time. another more dramatic version of this would be traditional oil and gas energy companies versus alternative energy you see they did fine from about the election up to early part of this year. mid february is where a lot of the cult growth stuff fell apart. that went for alternative energy xle having a monster year. still way down over five years and alternative energy seeing nothing. the upshot is the market wants exposure to what's going on right now in terms of inflation and acceleration in the economy. doesn't necessarily want high quality long-term growth stories, at least for the moment. >> mike, though, i think the question then is how does the stock market action fit in your mind with what seems like recently sluggish treasury yields >> it seems for sure like a mishmash, andrew

yesterday the stock market acted very much as if yields were going up in terms of leadership of the market. you saw things like utilities really hit new lows, recent lows anyway, real estate. so it's sort of acting like yields are likely headed higher but it seems like portfolio flows into treasuries have been strong enough recently also, the fed's message that it's not going to move very soon seems to be taken to heart it could be a stutter step in the long-term rise in treasury yields it's not dictating what's going on in the equity markets, at least for the moment. >> okay, mike. thank you for that analysis. becky? >> all right let's talk about both the markets and the economy which have been helped along by large amounts of government stimulus however, all those cash infusions are also causing some concerns about growing inflation fears. is it possible that we could keep seeing this incredibly strong economic data right alongside maybe not so great performance for stocks

joining us to talk about that is katie koch she's with goldman sachs asset management what do you think the answer is? could we see a great economy and lousy return for the stock market >> i think the good news for everybody is we're probably going to see both. we'll continue to see a strong economy and we are set up actually for some great equity market returns we're fundamental investors so we look at the world through our companies. i'll give you a quick couple of data points for earnings we've obviously had about 70% of the s&p reporting, a little bit more than that 90% beat expectations. three quick take aways had one investment implication the first is management teams feeling great. second, mike just talked about this earlier, definitely seeing a lot of signs of inflation, copper, construction even crocs putting through price increases. and then against the backdrop of big rotation we've had 13 years effectively

of growth leading value by 300% and since september values led by 20% and we think that could persist which leads to the implication it used to work for investors to be in the top five big tech companies and play the growth and deflation trade we think now investors are going to have to be much more balanced and compete in some sickically talt at this and look at small caps. >> that's interesting. you think this rotation that we've seen recently out of the big names in the nasdaq, that continues. >> we do we're not suggesting wholesale selling of those names they're great platforms. i'm happy to talk about them in more detail, but people have to look beyond them i think it is a good time to have balance in the portfolio. a good thing to find in this market is cyclically geared names tied to great secular outcomes travel that is something we like secularly. we know millennial consumers like certain things. caesar's was reporting on

tuesday that weekend bookings are fully booked in vegas and there's other data points along those lines. another area that one might want to look at would be some of the mining space that's actually connected to the secular story and the transition to a net zero climate. so there are ways to pick up cyclical oaks pose sure while still aligning with the strong secular outlooks. >> katie, you mentioned the travel stocks. it seems to me that many of those stocks have really come roaring back they're anticipating a full recovery you think there's even more room to run though? >> we do what you're experiencing is the pent-up demand obviously we all want to go out and have more fun and we are long the trade of having more fun. the secular story is a very big desire of millennial consumers to have experience over things the runway is not the next quarter, it's a 10-year runway we think a lot of people will be pulled into that, experience over travel. it will include things like

concerts, for example. just the one point i wanted to come back to cyclical, i know we talk a lot about u.s. markets. another place people may want to look to pick up cyclical exposure will be in europe europe is one or two quarters behind where the u.s. is if you think you left behind the value names, look to europe. that market is going to open up and you'll see a lot of the trends that happened in the u.s. play out in the european market and of course it's at 16 times priced earnings multiple versus the u.s. at 22 and the market is much more geared cyclically. there you could look at secular winners in the transition of the green economy, many are listed in europe. you could get the cyclical exposure with a so he can cue lar runway. >> i like your have more fun trade. i'm going to be thinking about that for a while in terms of inflation, you think this is transitory like the fed thinks it is the big question really becomes does this inflation get passed onto the companies are they seeing higher inputs, which a lot of them are?

are they able to pass that onto the customer so that it doesn't hurt their margins what do you think just about that first of all before we even get into whether inflation sticks around, works its way into wages >> yeah. so the management teams are saying that they're able to pass these along to customers we know that the consumer is very healthy, stimulus, savings rates are high the question whether or not it's tran transitory, it will take us time to figure it out we'll have to monitor two things first of all, when the rest of the world opens up and the supply chains become more open, is that going to actually help control inflationary pressures that's one thing we absolutely need to look at. the second is the labor market we ought to have a big jobs report coming out on friday. >> the second is what? you got cut off at the end. >> the second is the labor market and so you have a big number obviously coming out friday, but there's still a lot of slack in the global labor market as it relates to the race point

you brought up, i think the fed has a lot of willingness to look through short-term inflationary pressures until we get to full and inclusive employment i think we have to remember that and i think that's what my fixed income colleagues would say is what you're seeing playing out in the fixed income market >> what do you do with fixed income i keep hearing all of these people saying forget about the 60/40 split. 60% stocks, 40% bonds? >> i think in general a the 60/40 is quite challenged. i'll let my fixed income colleagues come back and tell you. what i would say about the portfolio being challenged is while we said, yes, you need to pick up cyclical exposure, you need to be looking outside of the traditional large cap equity markets. one we haven't talked about is getting exposure to small cap and so that's an asset class that we think is really poised to perform here and most investors are very under weight. most americans if you took out

your phone and looked at your portfolio, i encourage everyone to do that, you probably own more inapple stock than the entire small cap market. >> katie, thanks a lot it's good to see you today thanks foryour time. >> thanks. coming up, two chief executives with real-time views into the u.s. economic reopening. actually, maybe for booking holdings more for the world reopening. glenn fogel on, the ceo joining us to talk travel and hotel demand and uber ceo dara khosrwshahi will talk ride hailing, growth in the food delivery first though, take a look at this video, if you would, a spacex prototype starship rocket landing in texas without blowing up it says here, which is good it's the first high altitude test where the rocket didn't, in fact, explode.

however, rocket mortgage company. rocket mortgage isn't having as good of a day. down sharply in the pre-market after giving guidance for a key margin metric which is below first quarter levels stay tuned, you're watching "squawk box" on cnbc oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪

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look at the met trikts we're tracking travel rebounding? booking holdings, it reported first quarter numbers after the bell yesterday beat analyst expectations. glenn, it's great to have you on give us the state of the industry how much are you dependent on overseas >> absolutely booking holdings is a global company.

we need a worldwide recovery all the numbers for travel in the u.s. are better than anywhere, albeit israel, but that's a very small travel area. >> i've read that, what, 90% of your bookings outside the u.s. that's not always the way? it has been for how long >> we gave stats, we talked pre-covid. talking about half our business is european based. then we were talking 20% in the asian area and 30% in the u.s. and the rest of the world. it's spread out fairly nicely. we need to have all of these areas to recover before we can have full recovery >> people, passport, vaccine,

all of these different ideas popping in people's head isn't something like that going to be all of our life? i know that you're on the record as actually saying that would be a big benefit for a company like yours and poor feel trying to travel globally. >> we believe safety in travel is very important. we recognize people are going to be resistant and people get ill anywhere in the world. we want to make things as safe as possible. as vaccines are distributed throughout the world, people will feel safer and they'll start traveling more and more. we really look forward to that becoming a state where people don't always be thinking about covid. we just go about our lives >> compared to expedia or trip

adviser, the stock has lagged. do you see the rest of the world being able to open up? i don't think it's a different, necessarily, that it will immediately follow us because we're having so much more success in europe or the u.k., israel much more successful with the vaccine roleout. does it just follow that the rest of the world will follow and you'll join them >> yeah. you look at the correlation between where the vaccines are being rolled out fast and that's certainly where travel is doing best there's no doubt that europe has had a little bit of a problem in getting its vaccines rolled out. that being said, in the last few weeks it's picked up very nicely and we're beginning to see those green chutes so i am very encouraged about the long run but i'm encouraged to see the vaccine rolls being put in place

>> we've had a long relationship with your company and the predecessors are you surprised about the market, 90 and change and we remember the way the pipeline was on we would follow it every day you weren't part of the company back then, were you? >> i joined the company over 20 years ago. >> you did >> i remember that collapse from february 2020 to september that you're speaking about, joe we had a very long run of improving our products, improving our services, being able to provide to consumers what they wanted and the nature of the market is it follows how you're doing and our numbers have been increasing year over year >> reason i bra you the it up, i've been around, 30 years ago one of the best years i've had here was shatner, maybe richard

simmons. we had everyone. i know that price line -- there you are, becky that's me actually doing an imitation of -- that jim carrey did. he's 90. he was almost 90 there now he's not only one of my favorite interviews, but i think he's like my idol of all times he's huge into nfts, this guy. >> bill has been many years the spokesman for price line.com we were happy to help celebrate his 90th birthday. i was pleased with how priceline.com did last yaurt quarter. in the u.s. we were pleased with priceline.com and booking.com.

we hope to continue that type of u.s. emphasis in the future. >> is the negotiator still part of your -- will i see those ads? he's ready he could probably do them ten years from now. >> maybe he could but joe do you want to see those? you can go on youtube and look at them. >> you wouldn't be lagging anymore. you did say that is it already there. >> tomorrow i said it should be there. it's a very highly desirable area >> it's completely flexible.

it's big holiday setups. >> all right if he didn't not really sure why. you know the mike police over here >> oh, so you don't care >> glenn fogel, good luck. yeah, maybe it wasn't that >> that's what i was saying on the mike when they cut my mike. >> fixes no man has gone before >> we're going to tear this

universal black hole really he's great >> really. >> and i have said it many, many times. andrew. coming up when we return, a first on "squawk" interview following uber's first quarter results, we'll talk with dara khosrwshahi. stay tuned congacrit tethmi bk ghafr is

up next. breaking on new jobless claims we'll be right back.

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rick santelli here. do remember if you looked at the week prior to covid hitting in

march of 2020, it was 256,000. we're getting closer as we look at continuing claims, we found 3.69 million. it is not the cycle low last week 3,660,000. we want to continue monitoring claims but at this point they seem to be a little stubborn woompt we know there's a pandemic emergency. many people have joined in the elevated level of continuing claims is something to continue to debate, especially when you look at the other side of the equation, which is many anecdotal stories and maybe a little bit more powerful in that we've had so many restauranteurs on cnbc saying some of these benefits are making it very difficult to find workers. we have first quarter preliminary productivity out as well 5.4% up 5.4%.

much better than anticipated and in the rear-view mirror it was a 40 year low at minus 4.2 but it was altered. the revision now is minus 3.8. makes it a little less hurtful it moves to minus 3/10 of 1% lowered to 6% to 5.6 we see interest rates have drifted lower. drifted is the perfect word to now 1.58%. 1.60 is the technical area you want to use to pivot dollar index also been slowly decreasing in value. it seems as though if you look at the options and look for a period of less volatility. at least that's implied by implied volatility andrew, back to you.

>> rick, thank you for that. meantime, we have some news for our audience this morning, which is that david swenson has died at the age of 67 of course he's famous for running yale's massive endowment fund he expanded the portfolio from standard mix of stocks and bonds to substantial holdings in real estate, private equity and venture capital. david died last night after a long battle with cancer but he transformed the world of philanthropy and foundations and the world of venture capital and private equity at large given the way he approached investing and yale's moved into it and the rest of the world of education has moved into those spaces. joe. >> thanks, andrew. condolences to his family. coming up, uber's chief executive dara khosrwshahi will join us live stay tuned today is the last day tovote for our podcast in the webby awards go to cnbc.com/votesquawkpod and

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welcome back to "squawk box" this morning shares of uber are lower this morning after the first quarter results. the revenue is growing close to 30% sequentially ride hailing bookings were flat. we got some news that the biden

administration repealed a rule that would have made it easier to categorize workers as independent contractors. joining us to talk about all of it and where we are in the recovery in the united states and around the globe, first on cnbc interview is uber ceo dara khosrwshahi. great to see you you had great earnings and it does seem to be that we are on the path to a pretty great recovery, but i think there's also all sorts of new questions that are also emerging for investors. why don't we walk through what's happened in the last quarter and what you're seeing going forward, first, and then dig into the rest of it. >> absolutely. so we're very, very encouraged, actually, by the business. the siegns. the bookings at 19.5 million bookings april was better

april got even better. best month ever on a weekly basis we're getting our best week ever. really what we're seeing now is a benefit of uber eats that has grown at incredible rates, revenue more than tripled this quarter and accelerated, the growth rate accelerated even though you see the world opening up and we're now seeing the mobility business come back as well miami is in positive territory we've got lots of countries in asia now that are growing year on year. australia, hong kong, taiwan the u.k. and brazil back 80% the business is hitting on all cylinders and while we are leaning in and investing where appropriate, we're very confident again of what we talked about of hitting profitability in the back half of the year in terms of deep dive >> let's talk about costs of bringing drivers back on one

s side i'll tell you, dara, i got an uber on a drive typically getting across town. i would say is usually somewhere between 17 and maybe 21 bucks in a pre-pandemic universe. the price tag, $55 yesterday >> andrew, that is something that we're absolutely leaning into the way i describe it is demand has come back very quickly it's bounced back even faster than we expected we were confident but we didn't know how quickly it would be able to come back. the supply side, drivers coming back on the road, that's slower twitch what we've seen in our research as it relates to drivers using the system, they ar're concerne about two things am i safe? that's totally human thing to

ask. as more drivers become vaccinated, as more riders become vaccinated i think safety will resolve itself. this is in addition to the safety steps that we took where masks, leave your window open, et cetera, and they're also concerned about earnings earnings are at incredibly elevated levels. in new york that you talk about, median earnings for all the time, taking a trip on lift, are $37 per hour we think as they resolve themselves, you will see drivers come back to the system. we're already seeing drivers coming back to the system.

in order to alleviate exactly what you alluded to. we're investing so our consumer and our rider experience is better and we can bring some of those rider prices down as supply shifts and balances out >> right you know i'm a cheap skate, dara if the prices are always $5, i'm going to have to walk or get a bicycle. >> we are going to put more capital to bring drivers into the system we don't have experiences like that we're seeing prices come down relative -- prices are surging less relative to what they were a couple of weeks ago and that puts us in a position we think in the second half of the year where experiences are going to be great both for riders, drivers, do you rememberers, et cetera, and we can hit

profitability. >> dara, want to pivot to the other news which is really this debate that's been a cloud or a question mark over the company and this industry for so long around gig workers and what you think the voice that we've heard now from the biden administration, secretary of labor really wanting to label these contractors. you have a spike in the u.k. >> it's not clear the messages we want to label them as employees. i think the message we heard is that we want appropriate classification in some cases there should be employees, in some cases not we have the same debate in california the good news is the vast majority of drivers want to be

independent. with independence comes complete flexibility, work wherever you want, whenever you want. you can work for competition, et cetera and along with that flexibility we are saying we are willing to step up and offer benefits we're not advocating for the status quo we're advocating for a better way which is flexibility and benefits we intend to have that discussion with the biden administration we're having that discussion with state legislators and we think labor is going to be a part of that discussion too >> dara, in terms of them, the charge for taking the situation in london, what will that mean if there are changes, if there are things coming through. are there additional charges is it more expensive for you to

deal with your contractors or employees or people who work for uber as a result >> so, actually, london and the u.k. has a unique classification called the worker classification it's exactly what we're talking about which is a worker has independence but has benefits as well the charge that we took reflects our reclassifying our -- the drivers who use the system as workers for the last few years and the charges that we anticipate having to take in order to get them the benefits that we have committed to. so we think that charge we put behind us. in london now we are operating with drivers essentially classified as workers. it costs more, but the business is at a scale where we can take that cost and we think it's an appropriate investment into our customers who are our drivers. >> dara, what are you seeing on the uber eats side of the business obviously in the midst of a

pandemic when everybody was at home, everybody wanted to get food delivered hopefully as we get out of this i'm hoping less people are going to want to use that service, not for you but for the economy and the world. what are you seeing? has it been a permanent pull forward or was that a pull forward but we're not going to see it be sustainable? >> you know, it's very early in the development here actually, we showed some cases of how mobility has come back, for example, in new york city and how that affects the eats business what we're seeing is the eats business is the level at which it is operating, it essentially looks like it's quite sticky while i don't expect to see the kind of growth rates we've seen in the past, eats even this quarter more than tripled its revenue. i do think that the habit of being able to have any kind of food delivered to your home

within 30, 35 minutes, that's a great product and that product is going to be sticky. but i agree with you, one of the unique things about uber is we actually want people to get anything that they want but we're also very happy when they go, when they go back to work, when they go back to restaurants. we win both ways and we stay relevant to the consumer whether they want things delivered to their home or whether they want to go out, whether it's to a party or to a restaurant or to work essentially we can grow both ways that puts us in a great position and it puts us in a position where we're rooting for things to open up again it's not a bad thing for us. it's a very good thing for uber. >> dara, you've made a number of acquisitions over the years. you've redesigned the app. it feels more like a super app in certain ways because you can now sort of spend a lot of time in that app and i'm curious how you think about adding to that app. what other kind of features and

products and services over time the investor class should be thinking about and the consumer class, too >> yeah. we absolutely are looking at building a super app the super app concept is one that is incredibly popular in asia the alibaba's of the world, matwon, these are apps that provide all kinds of services to the consumers are incredibly sticky and those businesses have incredible market caps as you know we think we can be the local super app and so the categories we're looking at are categories that are high frequency and/or categories where you want instant gratification. we call it fast and frequent so obviously getting a ride we allow you to reserve rides we're adding new categories such as rental cars and then in the get category, food is a big category we are very, very ambitious as it relates to groceries and convenience with our acquisition

of corner shop you've seen us also announce the drizzly as it relates to alcohol delivery we're providing it all of this we can put it with you. >> it's a member of it we're going to work on travel. most recently added. >> it's a convenience thread we are coming for free we're building this membership program and we want to be the amazon prime for the next hour and we think we're uniquely sw situated to do so. >> dara, let me ask you one other thing. we've talked on this program for you for years about autonomous driving. you saw what lyft did.

we obviously know what you did in terms of moving that business elsewhere. mary barra said yesterday, i think the first time i had heard her say this, that she did not think that autonomous driving was going to be a real meaningful part of the business that we would see, true autonomous on the streets until the end of the decade, which was a much -- a very different kind of expectation and some of the conversations we've had, clearly elon musk has had and others do you have a new sort of time horizon for this and if so, what's happened >> you know, andrew, it's -- i think everyone who's made predictions about autonomous has proven to be wrong we don't know which one of them are right or wrong our focus now is we've partnered with aurora innovation and we all know that this problem is much harder than any of us anticipated and we think the approach of aurora, which is to build autonomous for trucking

and highway applications where you don't have all of the unpredictability that you see in a city, it's just an easier problem to solve and obviously we have uber freight and we can build a relationship there aurora innovation. bridging that into autonomou driving into more urban driving and the kinds of rides that you see on uber, that have highways, that may not be in city centers, et cetera, we think is a nice bridge into ride share is it going to happen in the next five years or the next ten year, i can't predict, but our approach with aurora innovation allows us a commercial bridge that other players just don't have and we think that's a nice advantage to have. >> okay. you're opting out of the prediction game and i appreciate why you would do that. dara, always good to see you appreciate it. we hope you come on back i look forward to seeing you in person, very, very soon. >> as do i thank you. >> you bet

becky? thanks, andrew let's get to cnbc headquarters, jim cramer joins us and let's get your take on several of these stocks today after the earnings, after we heard from the ceo and let's start with uber first the stock is down by 4%. what do you do here? >> i thought it was very mixed the secret to this is autonomous and especially with drivers going up and andrew, excellent interview, mary barra's comments did, to me, took away. that i looked at the autonomous themselves, uber a couple of years ago, i thought it could be good, obviously it didn't work, i think the delivery side is going to take a real hit, as it turns out that people want to be out more than ever and they really don't want to eat at home, even with grisly, i understand why the stock is down, the stock is down because it's exactly the opposite of what people want in this environment. it's a shame because i think dara does a great job. you just don't want to own that

stock given what we see out there. it is a contrary play in terms of the opening of america. >> in terms of people getting back in cars. >> a lot of companies that really kind of felt that there would never be moderna and pfizer, and there are a lot of companies that completely misjudged science. and how good science was i mean i think that there will be, i know that, the doordash guys, the people who do so, in your interview with dine america, with applebee's, showed that there is a huge portion of people who now like to take out, and like delivery, i don't think they necessarily like delivery i think that there are days when they don't want to go out, but as they hear that more and more people, wearing masks, or vaccinated, i think they're not afraid to go out so i look at chipotle, which seems to have figured this out but i was not encouraged i love to use uber

the prices that andrew mentioned, i've seen the same. but it may not be the bargain. it may not be the bargain that it was those are hot prices >> let me ask you about rocket companies, because that stock was down, last i looked, it was an hour ago or so, down by about 11 or 12% this morning, after the numbers were not quite as strong as wall street had been anticipating, but maybe it's the going forward that's the bigger concern here what happens if mortgage rates go up, does that mean the end to refinancing? >> that's another quizzical and fabulous interview you did i mean i'm a huge fan of dan gilbert. i think he's great i think farmer's fantastic and all i heard was listen, there will be margin compression, we will take share and again, not what i want to hear, if i want a bank, i want bank of america or jpmorgan. there is a turn with the exception of paypal of these alternate, fintech, and rocket

has been a remarkable leoparder, again, i wanted that interview to go well, meaning that i wanted to hear that the stock was long i did not hear that the stock was wrong. i heard it's necessary to do what they're doing and if he do the kind of interview like you did, there's no softballs and becky, i come back and say, wow, i'm hoping that was a bounceback but now i'm not sure a bunch of great interviews this morning that made me think that there should be let excite with the stocks you talked about. and i heard meg talking freely and nonpolitically, and i'm not sure i thought about these company, that i thought they were, you know, ready to kill it pfizer, i thought they were great. moderna. suddenly i have second thoughts about those. there were too many second thought stories this morning and they were all brought to light in your excellent program this morning. >> and a lot to think about. we know you will pick up the

ball and run with it and we'll get your thoughts on all of this, because you're right there, is second thinking, second thoughts, second analysis today. >> great job. >> thank you you see you in a few minutes. when we come back, some top stocks to watch as we get ready for the opening bell on wall street coming up in just about a half hour's time. also today on tech check, don't miss an exclusive interview with the dell ceo, michael dell stay tuned we're watching "squawk box." d iss bcanth icn

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a half hour until the opening bell on wall street. dom chu joins us with a look at some of the day's top pre-market movers >> we're taking a look at some of the analyst calls coming out this morning we will start with shares of zinga, higher on the heels of the better than expected quarterly earnings report, 200,000 shares of volume getting helped by bank of america analysts who have updated that online game maker to buy they have upped the price target to $13 about 150 from $12. they say that znyga is in a better position than any point in its history on the mobile gaming platform. getting some help there from earnings and an analyst call

shares of darden coming up next. 3,000 shares of volume the parent company of dining chairs like olive garden and grill and the target price is $164 it was $137. they liked among other things the expected continued growth, post-pandemic, of olive garden sales. so those shares getting some help as well we will end on a down one here peloton. down again pre-market. roughly 350,000 shares of pre-market volume. 3% losses here traders and investors still trying to digest, work through the implications of the fitness equipment maker's recall of the treadmill products and analysts at bank of america have downgraded it to neutral and cut the target price to $100 it was $150 before due in part to changing assumptions on the valuation given the recall of those tread mill products, joe so we got some moves there in the pre-market i'll send things back to you. >> we have someone directly affected, i think, dom >> i'm trying to figure, out,

joe -- >> this is actually what investors had to figure out. i don't know whether i'm going to give it back or not or whether this is just now made us even more aware of what we need to do to be protective of about it and i think there are a lot of families who own these things that will either, may actually just keep. it so we'll see. >> all right >> keep us updated >> fascinating see you later. see you tomorrow both of you. time to go they're killing us "squawk on the street. good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber, futures are steady, coming off the dow record high. earnings keeping us busy uber, viacom, paypal, moderna, and encouraging covid headlines that are front and center. jobless claims below 500 k for the first time our road map begins with the reopening trade. vaccine stocks under some pressure as the u.s. supports these patent