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 waivers

plus peloton, well, those shares are sinking once again today after the stock shed 4 billion in market value just yesterday shares paypal though seem to be rallying that company delivering an earnings beat, and moving ahead with the big bet on crypto oh, yes, carl, crypto. >> guys, as we said, big part of the discussion this morning, jim, involves jobless claims below 500 k, obviously uber's comments about the reopening, and i would argue that dara, at least to this point, has been a little cautious about putting their numbers as a reflection of the broader economic reopening >> frankly, as much as i respect dara, i don't know if i respect his business as much as i once did. i think it was great that they moved progressively into delivery because we didn't want to go to the restaurants. that's over. we want to go to restaurants more than i've ever seen and i'll tell you, david, people

don't want delivery. if there's a restaurant. any restaurant nearby. i went to long horn steak this morning rather than have delivery and it wasn't that bad. bloody mary. there is an element, david, of desperation here >> i think that's probably the case certainly in places that have been more locked down than others in our country. i thought what's interesting as well, in listening to dara talk with andrew, and becky, prices jim, we've all experienced this lately it seems to be a bit of a shortage of drivers. and the prices are exorbitant. i think it's fair to say he said three times, lean into it >> lean in. >> which i think means leaning into actually getting more drivers on the road so that potentially prices will start to come down. >> i thought leaning into it, we are not going to be making as much money and the drivers more. >> that may be the function. >> there are any number of other reasons. >> they're leaning into the subways in new york. meaning you want to take the

subway when you see that bill. we told our son, you know what, you're not an investment banker. take the subway. >> carl, it could lead to more subway traffic certainly in new york or other metropolitan areas if in fact they maintain or keep those very high levels in terms of pricing right now because it is noticeable even for those of us who don't use uber that often and we check in. >> i hear you hailed a cab the other day. >> i did. >> what was that like? >> i've been in plenty of taxis lately. >> that's something, carl, there was a kind of -- >> subway. >> there is kind of a sticker shock to uber. and i don't think it's going to get better look, there's sticker shock to everything the great quandary that jay powell faces is that there's so many help wanted signs and yet there's this tremendous mismatch between what the help wanted and what people want to do, and to get drivers, they're going to have to pay more and that's just something that there was too many drivers and now a shortage

it's the chip driver shortage. [ laughter ] >> yes, and of course, that golden ring, in the long term of autonomy, is still out there, but for the time being, dara did talk to "squawk box" this morning about demand, as jim says, and the degree to which they will have to pay more to get people around. here's what he said. >> we're very, very encouraged, actually, by the business, the scene signs that we're seeing all around us, our bookings for the quarter, it was our best quarter ever really what we're seeing now is a benefit of uber eats that has grown at incredible rate, 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 >> it's just a string of results, jim, that are on this topic. uber today hilton yesterday papa john's comps, 20-plus, right? we're in the middle of some very choppy waters.

>> yes, and papa john's tonight, when i first saw the numbers, i said how is that possible? how could they be doing a level of business that frankly with comps and plus 20s, and the answer is, is because papa john's is now a much better company than it was. i mean it's this fella, rob lynch is running it well some of these companies, you get fresh management in, it matters. it really matters. >> i had train on last night a new manager. and they're blowing away the numbers. there are some people out there who are just doing a great job and other people who are fighting secular, cyclical trend, it doesn't matter what they do. >> right talking about trends in the market, i think it is worth bringing up as well, i mean value is strongly outperforming growth so far. >> yes, it. >> and a day doesn't go by that i don't talk to a fund manager, about a broad array of technology stock, the growth category, cloud and any number of other, and if you thought

peloton was a growth stock or uber was at one point, what are your thoughts, jim, about that does it continue or does it reverse, as it seems to, so often, or seems to have so often in the past. >> it does eventually reverse, just because the stocks go to high, and watch lindy, they reported an amazing number, it is industrial gases, the reason why i've always liked it, it's secular, no cyclical and when you read the comment, they are an important industrial gas company, and we like lindy, it has some cyclicality to it, how many times carl have we dealt with companies where the kiss of death was, but it turns out there's some cyclicality we are now looking for companies that have some cyclicality when you get to that point, you better have a pretty clear road map that is jay powell's continuation of support of this economy. because i don't want cyclicality even if, maybe after the second

rate hike. i really don't. >> meanwhile, you continue to support the fed chairman's belief - >> vociferously. >> even though we started off our show today talking about how uber pricing is sky high >> i mean last i heard, people actually pay those bills it adds up that's not inflation >> there is inflation in the system but i think it's transitory do you think lumber will stay at 1500 dollars - >> versus $250 a year ago? >> if we're having this conversation a year from now, will you say transitory or a sign it wasn't >> we will be making a huge amount of money but we will be carrying it around with wheelbarrows and bread will go up every 15 minutes, and you better go get bread now. >> people who lived through that, jim, say it was very scary. it was unnerving to go to the store, and then go to the store the next day, and milk was 50 cents more expensive >> and there were only two things that held their value master works

master work art. and mansions and they held their value. even through zimbabwe. interesting. master work art. never seems -- it's impervious to hyperinflation. >> i think next week is the big sothby's auction. >> incredible buys >> the master works. >> master works can withstand any amount of inflation. and have all through the previous centuries >> guys, we should touch on this news about vaccine patent protection, potential waivers, the g 7 stopped just sort of it yesterday but the biden white house clearly supports it. some of the vaccine makers stocks did get hit on this news yesterday, and borla, pfizer did talk to the exchange on tuesday about what it would mean if they removed some of those patents for distribution around the world. here's what he said.

>> it makes zero sense, nothing mentioned about the disincentives that we create in the biotech industry and what does it mean for the next pandemic. >> what does it mean in the next pandemic, jim? >> geez, i don't know. if they're going to make a dollar per share, that was the plan, and i was thinking that you could give that, it was given a two multiple of 39, and i thought it could expand to a four multiple. i think it is back to a one multiple and that's what people are going to put on it, in terms of 15 multiple for the rest of business, and, david, i'm not shocked as we talked about, but i thought that pfizer was going to reignite this group and now, i'm concerned >> because of the -- >> i think you have to i think you have to, the stock, moderna had a fantastic number >> well, it is a little curious,

because it's not clear that it's going to actually help in the near term in any way it's going to take a very long time. >> that's what dr. bourla was saying and andrew asked meg, in a polite way, listen, you're not an ideal og, i spoke to someone this morning, how it could affect pfizer and the person said to me, jim is, that really your take-away and the person had to be someone i live with, so it was not great. >> there's 4,000 people a day or more dieing in india >> right. >> and she said, you think about it, my job is to figure out pfizer is it really interesting. >> that said, does it set an example or a trend that is certainly deleterious for a lot of these companies that are developing things that are conceivably going to be -- >> i have my friends on the the right who say it is

confiscatory this is the true joe biden colors it doesn't matter what pfizer says or does or spend, remember that they're in america, and in the end, we're a humanitarian country, and i'm not used to having a frank discussion say with the cfo and then throwing it away after i had it it's not my homework i am saying, wow, i came here, last night, i was on scott wapner's show yesterday, and i said judge, look, i think the market is not paying enough for the revenue stream well now they're paying almost nothing for the revenue stream nothing. and that's pretty shocking >> i mean the response, jim, is going to be, as the journal said that the pfizer vaccine at least is probably going to be one of the guest, best-selling pharma products of all time, surpassing lipitor, which has made $125 billion in the last decade and a half, and some would argue that's -- that's what the journal had -- >> it's very, look, pharma has

been under a lot of pressure, and it's been, you would rather be in cleveland cliffs than you would rather be in bristol myers, which i reiterate had a horrendous quarter and losing its ability to cause me to joke about the name, but i think that when you look at this group, you got to rethink, you got to rethink it if they're just able to waive a wand. >> well, let's assume it's a one-time. >> why >> okay. fair point >> why not just go all in, on, you know, the v.a. pays for drugs at a good price. i said maybe this is the medicare at last when you think that that's a right wing hack argument - >> i have a hard time believing that would actually come - >> i think it's going to lower the price, various multiples of drugs. carl, in the list of things that people want in their portfolio right now, these huge trigger pullers, it's really -

>> the question is really whether it's the best way to go, given the downside and trying to deal with the crisis in these countries that are not getting vaccines, don't have access to the vaccines we're going to have excess doses very soon. >> and we've all come, to i think, respect dr. -- he comes on a lot because meg is so fabulous and i think dr. bourla is an imminently reasonable man to try to save as many lives as possible and his view is, look, as if he doesn't have it he's looking at he's running a cruise ship and the cdc says you have to put a mask on between bites and drinks carl, that is actually what the cdc said you can ship, they can go but you have, every time, after you sinned a beer, the mask goes right back on. who wants to do that >> we're going to talk about what the cdc said yesterday, jim, i know it is something you watch incredibly closely we'll get to norwegian's results

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wanna help kids get their homework done? well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna learn. over the next 10 years, comcast is committing $1 billion to reach 50 million low-income americans with the tools and resources they need to be ready for anything. i hope you're ready. 'cause we are. we have earnings from viacom, fox after the close yesterday. i want to take a look at both, of course. so-called old media. they're really new in a lot of

ways, right? direct to consumer is certainly so important these days. not necessarily for fox which is really about news and sports, but for viacom and its paramount plus, let's start there. it does look like the stock will be up. don't forget of course, one of the key stocks wrapped up in the archegos saga and where i was talking about them, what, almost every day, and that and discovery, why do they keep going up, why do they keep going up, and why do they keep going up and of course, they stopped going up and viacom, coming in today, up 5% for the year. and discovery up 21% it is interesting to note fox which had underperformed so dramatically for some time is now the best performer of these threed names since the year began. 6 million global streaming subs added to get to 36 million that seems to be encouraging some investors this morning. revenue up about 65% streaming, of course, where you're coming from and ad revenue is pretty strong. they did have the probably super

bowl, and ncaa and obviously, that 14% number year over year increase is a bit better than some analysts had been anticipating and eps on an adjusted basis was more than the consensus. and the concern though continues to be how much you will have to spend over time. remember they raised 2.7 billion. they did take advantage of archegos in some ways. at least for the, went out there and raised 2.7 billion from issuing stock. and the convertible. but the question, jim, remains how much you're going to have to spend for subscribers that generally will have a lower average revenue per user than the good old-fashioned ecosystem that we're all still a part of, but that keeps doing this. >> i think we're still trying to adjust to the fact that as the stock went up, we kept thinking that they're worth more. we let the stock dictate the analysis >> you know, there were plenty of analysts who felt like, i don't know, i can't fight it and

then you start to justify it, in some way >> there was a dogecoin aspect of it once it got past 50. >> fox seems to be the better performer, will be the better performer this morning and broadly speaking, keep in mind, there is going to be, there is one more realignment yet to come here, amongst many of these, let's call them the smaller plays. there's one more realignment how it all works, and who and what, and when, not clear to me yet. but hard to imagine it's not going to come at some point. >> i think that's so right, carl one thing that has happened during this period is everybody's streaming sounds good and we'll hear from roku later this week. i don't know if you have roku on tech check, great guest, bill ford is on, who will tell you more about china than anyone else in america, but i do think that we may have priced everything off archegos's move and i'm still thinking how did that happen?

how the fact that viacom didn't do what gamestop had to do at amc, took advantage. now archegos was their own kind of meme wall street bet outfit >> yes, i mean it still boggles the mind what exactly, how it all went. >> why would robinson still want to give this man money. >> a lot of it is his own money, which shows you how wealthy you can become. >> and dogecoin at the beginning of the year. >> 12,000%, right? >> it was up enormously. don't forget, enormous profits >> and now he has 60 cents >> yeah. probably >> maybe >> he probably still has - >> jim, it does kind of remind you of what denzler said yesterday and will probably continue to say at these hearings and that is what kind of policy changes need to be made if that era, we're talking about, that sort of archegos, and the game-ification period earlier this year was truly kind of episodic, right, and not

systemic what rule changes do they need to put in place? >> i would say the industry should get ready because he is smarter than they are. he's very shrewd and i think people have to get ready for a different s.e.c. a thoughtful s.e.c. who doesn't want shenanigans and don't want it to happen again they do not want another gamestop they just don't. >> guy, one more break here as we get closer to the opening bell as we said coming off the job record high, nasdaq of course with four straight losses, the longest losing streak since october. and we'll see if that continues today. with the futures just south of the flat line. don't go away. we've got you taken care of, sgt. houston. thank you. that was fast! one call to usaa got her a tow, her claim paid...

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welcome back time for mad dash, getting ready for the

opening bell, six minutes or so from now kellogg's reported earnings. >> i did not know that you have kellogg's on >> we have the ceo joining us in the 10:00 hour. >> i got to tell you, there have been many times when we talked about kellogg, how many planes were going to battle creek because there might be a takeover those days are over. this company may be having some of the best organic growth of the food companies and raised guidance when i look at this group, i say geez, this one is well behind the others and it's growing faster this one is going to be a straight shot i think to 68, 69, and on an organic basis, the company's net sales increased 4% that's very big for kellogg. and it's not just the stay at home, i want a bowl of cereal, they are doing a lot of stuff that's very good by the way, pringles is doing really well. i've always been a fan of pringles >> you have? >> my wife says that's like better living through chemistry.

i think it's darn good >> they are pretty good. >> and they're quite addictive. >> but i also like rice cakes so i may have no taste whatsoever. >> do you like poptarts? >> poptarts was a great treats when i was growing up, as was tang and my mom used to get the welch's grape juice and mix water in it, what it that say? we mix water in it only later on did i realize that the rich kids never mixed water in it and never drank tang and said it was for astronauts >> remember hawaiian punch that's what i grew up on >> a great interview. >> that was 3% real fruit juice. >> was it really i didn't know that. >> you will love this interview. this is a new kellogg, and i congratulate them for not just sitting there and taking the beating that they have for years and years. >> all right, that's a nice way to end things on the mad dash. we got opening bell a few minutes away stay with us

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framework, we want to see actual progress, not just forecast progress, so as we move through the year, we'll get more data, we'll get an employment report on friday and as we go through the year and assess that data, we'll be able to make a judgment about substantial progress but we're certainly not there yet. >> the street has definitely wrestled with the fed speak in the last few days, jim we heard from the treasury secretary, but other officials talking about when we would begin a taper discussion, and then out comes clarida, out comes rosengren and saying we're not there yet. >> whatever we're waiting for, the home business, the final tick in lumber and lumber is the most visible and there are people who say the moment lumber tumbles is a moment we will see a lot of commodities go down that's been the bellwether lumber is a very obtuse market not a great two-way market but david, one of these commodities is going to have to break.

whether it be corn - >> why >> why >> yeah, why >> because it trades on momentum and a lot of people believe that lumber is manipulative. >> and it doesn't have to do with the mills >> there are three canadian mills not putting out enough and the canadian market not sending us enough and it seems like a very manipulative market. >> the opening bell. the nyse and the nasdaq, and the nasdaq at the bottom of the screen i do wonder if you think oil will be one of those to break, jpmorgan's holding a call this morning, about their long-standing call for a super cycle in crude because of debt reduction. commitment to dividends. decarbonization, they think, will starve the industry of the capital that you need to meet future oil demand and i know you agreed with goldman's $80 target. >> super cycle has been long in our business from the day of the coal

super cycle fracking sands super cycle. look, there is a genuine believe that there will be no more pipelines built under biden. there's a belief that there will be a gradual clamp-down on drilling and that is making people feel very bullish and of course, along with a great opening trade. i still contend that there is a level that the saudis do not want it to go to because we can make, we can make a lot of money at this level and that means that our oil, our marginal oil companies are objection -- occidentals even an apache they can make money. and i don't think the saudis want that to happen. >> no, when you think about occi though, just the fact that they survived alone is somewhat extraordinary. >> kind of a low bar. >> it may be a low bar but there were not nearly as many bankruptcies as we would have thought, even one year ago, jim, given the capital structure of many of these companies heading into the pandemic.

>> you're dead right >> and certainly occi has performed quite well, the stock up 100% over the last 12 months. and we talked yesterday about caesar's a different industry but come back to sort of a capital structure and people are like, that won't go well and in fact, it is the opposite the stock up a thousand percent. >> i keep thinking about the work that you did, david, with that stock >> yeah. >> and how clear it is that it's harder to hate exxon, as a giant polluter, when they have a board that i think is conceivably anti-carbon. >> yeah. >> a majority anti-squashen. >> -- anti-carbon. >> they have a very serious board. >> and there will be those who will say it is nonsense. the percent of cap ex overall, spending on cash. >> you agree, you think they're real, right? >> yes, i think they're real we had jeff, on, the mike angelickis, former heavy wait of

come waft, and you go on from there. this is the board that they seem to want, and the question is, will they deliver, and can carbon capture really become a profitable part of this company? and one that investors start to really focus on? well, they'll say we need to put a price on carbon. for that really to occur, that's why you're going to continue to see the push on that that that's what has to happen and it is not clear the biden administration is moving in that direction specifically, the price on carbon, the bill that almost made it out of senate early in obama's administration, would have. >> what do you think about the prospect that the carbon could be used to mine bitcoin theory >> i don't know. >> it's under consideration from many of the smaller oil companies. >> you bring up something else, which is coming up, and carl, you know, the energy used as a result of mining of

cryptocurrencies, is enormous. >> yes >> i mean, you know, make your comparison and i forget some of them, but it's incredible how much electricity demand is going towards people who are mining crypto. >> and with the ethereum run-up, you will start hearing that it's nvidia, nvidia does have a car, it's not what nvidia wants, but nvidia like paypal will become proxies for this remarkable group, in ethereum, and i was watching morning with brian sullivan and he started with dogecoin, which i, you know, it's hard, but carl, the amount of ridiculous money i made in this ethereum, i mean it's just like okay, i won the lottery i went to the gas station, where everybody won -- >> didn't you tell me you decided to buy some? >> hey, faber. >> take it over the line >> no, because there is no profit takers in this stuff. one of the things that has just happened, there is not a single,

i'm the only profit taker in the world in ethereum. >> well, i am. >> i'm the chump who sold some ethereum. >> you need it for your nfts if you're going to, that's what you immediate it for. >> i do, wonder, carl, when it comes to esg which we focus on, at what point is crypto going to come into their sites given the electricity use. given what it's doing in terms of the carbon footprint of producing all of that energy for people to mine, not just bitcoin but all of these when is that going to start to fall under some scrutiny from those who favor esg? >> oh, yeah. >> it costs a lot more in energy to mine it than it does to print a dollar bill. no question about that by the way, paypal's schulman talked a bit about this on the call last night. here's what he said. >> we've got a tremendous amount of really great results going on, tactically, with our

cryptocurrency efforts right now. and we're excited about those, we're investing in those, but this whole idea around establishing a digital currency and block chain business unit inside pay pal is to think about what is the financial system going to start to move towards and how can we be a shaper of that, a leader within that, and not a reactor, to how that's happening? >> sort of in this space, guys, not quite, but definitely in the payments and e-commerce space, jim, is etsy, right now the biggest loser on the s&p they beat, but declined to provide some full-year guidance and they of course warned about slowing user growth. how much is this overdone if at all? >> wow, i have etsy on tonight, and i think the company is great. and there's a lot of work that

can associate what you really want versus what you're saying and they're doing such remarkable place to get something that nobody else has and they spent a portion of the call talking about how they felt that the big bump that they had was almost entirely stimulus and its stimulus that ends, and therefore the bump ends, along with the mass buy, and mass buying is only a few percentage now. and they made me feel like it's over, etsy i was shocked. and i'm going to probe them. because i think they overdid it on the down side i really do. i betcha mother's day is a very good year for them i think gardening is good. but i was more positive about etsy than they were. >> they were a stay at home play. >> yes, that's the point they were a stay at home play. >> we have a misleading chart up there. take a look at the two-year, in terms of the perspective and where the stock has come from, really over the last year. >> it has been a principle stay

at home play. >> and dan schulman said something, the people who have crypto, which many do, they are rabid, and they check their phone many times a day, to see what they're worth >> you need to know. it moves around a lot. >> you do need to know. >> yeah. >> but remember, i'm the only seller, so you don't have to worry. >> carl, the only seller in america. >> next week, i think -- >> are you going to sell >> no, there is a way at the sothby's auction where you can pay in bitcoin or ethereum. >> i can go buy a rothchild. >> only a couple mill for you. >> it will be there by then. >> it's nothing. >> and people buying dogecoin because of musk going on "saturday night live." i don't know i don't know i thought about that as an investment but maybe

we're just fuddy-duddies >> not maybe we are. >> we're in a weird era where snl is potentially a market event for at least one asset class. we'll see what happens on saturday night i have not talked to anybody who has any clue about what's going on what will happen on saturday >> jim, it's a reversal. >> should we go to the rehearsal? >> at 10:30, yes >> norwegian, jim, is basically flat, revenue down 99% you don't see that too often a total of three 3 million and they see a quarterly loss this quarter. >> frank del rio, fdr, as i call him, has done such a great job in staying afloat and people say wait a second, he makes a lot of money, he has a ge-like salary, david, i know you care about that, but they're not get any help from the cdc and a lot of people feel like if you're going to make it, if it doesn't matter

how you treat guests who are vaccinated versus not and there is nothing they can do i think the government or the cdc would like to put these guys out of business. i really believe that. >> that sounds -- they don't want to put them out of business. >> i think they've watched that documentary too many times the documentary on the carnival cruise line. >> yes, and they decided nobody should be able to cruise anymore? >> i think that was a sub optimal depiction of the industry. >> it was. but these rules are certainly somewhat bizarre >> david, if you have a sip of a beer, you immediately have to put the mask on. >> if everybody on the ship is fully vaccinated that doesn't make any sense. >> a bite of a hamburger, you wipe your mouth. blot your mouth. put it on. and take another bite and take it off. >> carl is, this really an attempt by a government agency to keep an industry going? i mean what are they going to have people on, are they going to have constables who arrest

you if you blow your nose and don't, and take your mask off to blow your nose >> covid coordinators. >> is that what they call them >> covid coordinators >> you made that up. >> actually no. >> covid coordinators. >> last night -- >> mask up don't get too close. >> a different world 100% capacity but you can't put people six feet from each other. cdc, thank you for giving us the most mixed message ever. >> their messaging has to be improved >> no question. >> yes. >> sorry, carl. >> jim, you have been a critic of their comps lately and that seems to be well born out. and tough sledding here in the early going. sectors are mixed. let's get to bob pisani, hey, bob. >> good morning, guys. flat open essentially but a word that biden is willing to compromise on the corporate tax rate, getting a lot of play on

trading desks and people realizing we're not going to see these big increases in tax, we'll see some but not anything near what the original proposals were you can see the trend here, the bias is once again, towards the reopening plays, the material, the industrials, energy doing well, the story for the second quarter, ever since the start of april, these have tended to outperform, tech has tended to underperform let me show you how the sectors are doing since the start of the quarter. now this is april 1st. the start of the second quarter i'm talking about. and you see the bias towards the reopening here with materials, energy, banks, outperforming, communication services doing well but tech and the s&p up about 5% for the quarter, the second quarter, and tech is the laggard here, up about 2%, anded of course, a lot of the more affected of tech aspects, particularly cathie wood stuff, are down on the quarter notably, on the s&p, very narrow trading range since we started the season, and we

were about 4170 three weeks ago, we're about 4170 today so all the gains this year have essentially occurred in the middle of march to the middle of april, and once the earnings season starts, we have essentially moved sideways the real testimony to the idea that the market anticipated these fabulous earnings, even the blowout earnings we're seeing, 20% above expectations and still having a hard time moving forward i think that's going to be an issue for the third and the fourth quarter so today, big story is gary gensler is testifying in front of the house financial services committee. this is the third hearing on gamestop the first hearing as the head of the s.e.c. the testimony is out already not surprisingly he's addressing game-ification of trading and payment for order flow and a big discussion whether the broker/dealers have conflicts of interest, whether encouraging more trading, and the more trading, the more they get paid, the conflict there, and the disclosure of short

position, you don't have to disclose short positions unlike you have to disclose long positions. should people do that? and that's a big debate. you will hear a lot about that and he does address the archegos fallout to a certain extent, talking about whether there is a need for more regulation of swaps. i'll tell you what i find interesting about the written testimony. there is no specific recommendations. it doesn't say i am going to do this what he does say, time after time, is i am asking my staff for recommendations on what we ought to be doing. and at the end, he says he's going to publish a report of market events over the summer. in other words, he's going to aggregate all of the recommendations from his staff and publish a report well, this puts them on notice the committee is now going to be expecting some kind of report for him in the middle of the summer, what kind of conclusions he's come to, and i think so commentary is a little more aggressive than some people in the community had been anticipating finally, carl, he mentioned reviewing events for what he calls violations this. tells me he's bringing in the enforcement division, these are

the cops that are out there, and we may hear about some potential violations out there two things, carl, didn't mention anything about esg in there. nothing about bitcoin as well. these are the other two big topics that are going to be front and center in his administration, nothing in there, but carl, i'm sure he will be asked about it and we will be monitoring it. back to you. >> bob, we'll rely on you for that, bob pisani, bob, thanks. obviously we have productivity numbers this morning and a nice number on claims relatively speaking let's get to rick santelli hey, rick. >> hi, carl. you're absolutely right. granted, the under 500,000 in initial claims of 498 is a good thing but there was an upward revision from 553 to 590, and of course, many people that follow the moving averages of initial claims have pointed out that that makes this week sort of a wash but it's still, if you look at the most recent read, the current change under 500,000 is

a good thing if you look at an intra-day chart of 10s, there wasn't a whole lot of movement but we did start the climb afterwards you might be thinking, isn't that proof that the market liked the number productivity as good as carl mentioned but i think one of the driving forces today, in interest rates, is the euro. now, if you look at the three-day of tens here, and what you need to pay attention to is if you start trading under 155, you're going to see some sell stops or buy stops, because the price is going up and that's going to trigger some activity now, back to europe, because europe's key here today. here's a 24-hour chart of bunds. they're at minus 21 basis points and they are selling off, pushing yields higher, and the main reason, and do keep in mind that the highest post-covid close for bund yields is minus 19 so we're getting close to that again. and they're getting things under control. and this had a shaky start on vaccinations getting their ducks in a row

here and the market is taking notice. we all know how investors like to move to the best opportunity, at least in their mind, and right now, that seems to be europe and look at the, not only the euro currency, how it's flying along, with interest rates, euro moving higher, pressuring the dollar, look at the canadian dollar, now this is dollar versus canada chart, and going back to september, 2017. because the dollar is currently at a three and a half year low remember, canadian, the australians have these commodity economies and boy at this point in time, they're hot, hot, hot carl, jim, david, back to you. >> rick, we'll talk to you in a bit. rick santelli. coming up later this morning, kellogg, as you heard jim say a moment ago, posting a quarterly beat, and raising guidance sales continue to grow as the economy reopens. we'll have an exclusive with the ceo in the next hour. as the s&p is looking for a little direction here. down about two points. dow and the nasdaq are split once again don't go away.

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it was great to be together. >> right >> no masks. >> i can't believe it's been 14 months since we were all together, and no masks and drinking at a bar, oh, my god. that was fun. >> it was just incredible with special margs we put together. and carl, to see you, i don't think people realize, i haven't seen carl since my birthday, that fabled birthday party where you said, jim keeps talking about this pandemic as if one day it's going to come here. >> okay. i guess i still deserve it. >> we all remember, jim, and now that we know that this is possible, now it's going to be up to companies to establish protocols so that we can make that kind of thing happen on set, which is -- it's not easy to do but we're working on that. >> i wanted everyone to be vaccinated, i know it's become taboo, that you say i need you to be vaccinated. >> we have to get past psychological, you have to get past that as well. but you got to get to stop

trading. carl is tall, but you and i are -- >> i shrink by the hour. >> i won't even be a 6er anymore. >> my father was bigger than me, then smaller than me speaking of smaller, rocket companies is a very good company and the leader in mortgages, but they did give -- they talked about pricing, not that good, but how i really feel is they want to dominate, and when you want to dominate, maybe you have to cut margins, should this stock be down as much? i think a lot of people were saying, you know what, it's too risky. by the way, one that i'm actually thrilled is going up a little is peloton. john foley is doing everything he can they will come at your house at your convenience, retrieve your tread and give you a full refund, and i don't know, how could you do better than that? and my hat's off to john foley who really is -- everyone loves the treadmill. i know there's issues, but carl,

i think john foley is the real deal, and i think they're going to survive this, even though a lot of people feel it's too expensive. they'll come out on the other side. >> didn't quite get to 80 this morning, 80 1/2, and baird did say to buy the dip yesterday you'll have the numbers to kick around, along with pizza, right? >> look, pizza has become the food, and remember, it's the little guy that just -- there's 150,000 restaurants that went under and a lot of them are pizza places they didn't have the technology, and remember pizza hut had good numbers too. i want to be in rob lynch's position you want to be a seller of pizza right now. not buyer pizza. i just love it. >> great show, and thank you, again, for last night. >> thank you >> yes, we had a blast, thank you, jim s&p down about 4 "squawk on the street" continues in a moment.

welcome to another hour of "squawk on the street," i'm carl quintanilla with david faber and

morgan brennan, the economic reopening, better vaccination trends, once again, in tech at large, nasdaq is down for a fifth day as we're in the longest losing streak since october. the dow did have a green open but has settled back, morgan, roughly to the flat line. >> we're going to keep watching that we're 30 minutes into the trading session. three big movers that we are watching this morning, starting with viacom cbs, shares rising after earnings and revenues came in above estimates thangsks to higher affiliate fees and ad shares shares down 1/2% av and bev moving higher that stock is higher, up 5%, announcing that ceo carlos bristoe is stepping down in july after15 years of leader the beer brewer, and watch peloton off its lows after we've seen a pretty steep selloff the last couple of days with investors working through the implications of the company's recall of its treadmill products shares have turned positive this

session so far, up about 1 1/2%. analysts at bank of america downgraded the stock to neutral. cut the target price from 100 to 150. we're going to talk more about that name in a few moments, carl. >> morgan, in the meantime, moderna is down about 9% about a three-week low on mrna obviously there's a lot of news. there's the quarter, first ever profit, got some guidance on vaccine revenue. now news about potential waivers on an intellectual property. meg tirrell has more of it. >> this question seemed to overshadow everything on the company's earnings call just now. the company did report its first ever profit in its history beat on eps in the first quarter, slightly missed on sales in terms of covid vaccine, 1 p1$.7 billion in revenue. is what they're forecasting for the year they had some news on their covid vaccine. they saw 96% efficacy for the vaccine in teenagers ages 12 to

17, and they separately are saying they are going to start their full-iling for full appro of the vaccine in the united states this month. now, on that patent waiver question, of course this coming after president biden said he supported the idea and the u.s. trade representatives said they would work towards something like this, so many questions on the call for moderna's ceo, steph stephan bancel. >> there's no mrna capacity in the world, this is a new technology you cannot go hire people who know how to make mrna. those people don't exist we saw the news last night, and news tonight. >> so guys, moderna ceo is not worried about this, but moderna's stock is taking a hit, down 8% now. of course it dropped yesterday on the news after the market closed we actually got data on moderna's booster shots which

look positive, and analysts saying from what they said in the call this morning and the data last night, they see a lot of durable revenue in covid for the company. this is really affecting all of these companies in the vaccine space. if you look at novavax, which is expecting phase 3 data in the u.s. soon for its covid vaccine. expecting data soon. biontech, all stocks down 7 to 9% on the patent news. guys. >> in the meantime, more broadly, the pace of daily vaccinations in this country, the 7-day average is down about a third from the peak. if we get clearance on 12 to 17-year-olds, or 12 to 15-year-olds, i guess, i imagine that's going to be net positive for vaccination rates in the u.s. >> pfizer's ceo was asked that, he did hope and expect once they got clearance for that

population of folks, there would be a lot more people going to get vaccinated interestingly, there was a poll out from kaiser family foundation, saying among adults, people who have not been vaccinated, there are 9% who say they still plan to get vaccinated in terms of the adult population, we are mirroring the end of people who it's going to be easy to get to. >> meg, real quickly, how concerned do you think people are in the industry about the waiver on ip, and whether or not it is a one time deal or whether it should be viewed as perhaps a seminole moment here >> i think that the industry is worried that it will be viewed as a seminole moment and a shot across the bow that could set a precedent for the future however, the industry messaging is this is just not going to work this isn't going to accomplish what, you know, a lot of people will say it will accomplish. i think there's agreement on that both sides say just waving the patents isn't going to do it

in a manufacturing situation, we invest in building manufacturers and the helping with the know how to do so there's so much argument over this, and whether that know how will be shared really doesn't seem like a promising situation right now. >> this is going to be one we're going to continue to watch and talk about meg tirrell thanks for bringing us the latest. uber shares under pressure with revenue coming in below forecast uber ceo dara khosrowshahi was on "squawk box" and discussed the economic recovery. >> we want people to get anything 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 >> jason, oppenheimer manager,

and tom white, research analyst join us now. gentlemen, good morning. jason, i'll start with you, your response to those comments, especially in light of the results we got for uber. is the way to think about the company potentially, especially when you put it in the bucket with say lyft or door dash that it's kind of the exxon mobil, if you will, the integrated player in delivery? >> i mean, that has been the story, right, they want to be the super app, the idea that they can drive cross selling between first use it for food. they sell you roye, you use it t food, and expanding into grocery and liquor, and other things there's a lot of factors going on, and we can talk about some of the labor concern issues, classification issues. they tried to provide data gave out data for sydney and new york city, showing how as

mobility has recovered, they haven't seen a meaningful fall off in food delivery so i think they're trying to argue they can have their cake and eat it too you know, that may be one of the market concerns. i think the main market concern is just the whole driver classification question. >> let's dig into nthat a littl bit more the end of last week on the network, as well how you balance basically these reopening efforts and the fact that you continue to see growth in things like food delivery for uber, versus the head winds around not only recruiting more drivers but also all of this potential regulation. >> yeah, look, i think rising regulation not only in ride sharing, but also increasingly in food delivery, which i think is maybe an under appreciated risk on the part of investors. for us, this is kind of the looming, big risk, not only for uber but for a lot of these gig

economy companies. obviously the labor secretary and the labor department has been doing saber rattling over the last couple of weeks on driver classification. it's not clear to us what they can unilaterally do to compel reclassification or whatever but it's clearly going to increase pressure on the gig companies to address the issue and could, i think, have local lawsuits, lawsuits at the local level which kind of put pressure on food delivery, i think, is one where it was sort of totally unregulated pre-pandemic you're starting to see now regulators point their gaze there. in new york city, for example, nearby where i live, you've got the front runner for mayor, you know, call for a permanent commission cap here. calling to require the food platforms to share customer data with the restaurants you know, this is an area, i think, too, that needs to be monitored. all that said, i'm still a big fan of uber. i think they're building a very large and diverse business

i think some of the stats on the new verticals last night were really impressive, you know, $3 billion run rate for the new stuff like grocery and alcohol, so -- but the regulatory stuff certainly needs to be watched. >> before we move on in this conversation, jason, i want to get your thoughts on the labor piece of the puzzle and also how uber is going to stack up against other players and delivery, including doordash which i know you also cover. >> we all have been asking what the impact has been in california post prop 22. what they're basically saying is they'll absorb the small amount of costs they won't quantify that, and basically passed the additional costs on to riders, and they're saying that when they compare cohorts in california versus other comparable states, or comparable cities, et cetera, they're not seeing any difference in behavior, so granted we're all not back to

normal behavior, so i think there's still some risk to that. but that is what they're saying. they're trying to say if prop 22 style goes to the rest of the country, they can manage that. it does add certain complexities where the driver can kind of choose their price, and it may make the service less appealing in a way but that's what they're trying to put out there and look, this is a company that i think has the kind of legal chops to defend themselves as we have seen were necessary so my guess is that they just need to have much more conversations with investors, and kind of get people comfortable. look, as far as food we've seen door dash already come out and post three different pricing models, kind of low, mid and high, depending on do you want to simply use them as a bare bones service for delivery or as a marketing partner, right, so the question is does that do enough to placate regulators, and i think more and more,

you're also going to see these companies allow free, what we call marketplace orders. so in other words, if you do self-delivery, you can list your restaurant, and basically get that order for free, and you may be lower in the ranks, versus being paid higher to be in the ranks. that could also work as well which that would probably hurt obviously some of the other competitors who are less delivery focussed and more marketplace focused. >> tom, i wonder, you know, what you make of right now of public transportation, which arguably is getting a lot of assistance in some of these rescue packages, certainly getting a big push from municipalities is there a sense that that push to get people back on trains and buses and subways is a material head wind for uber, at least on the ride side? >> it's hard to say. i mean, i think it's unclear whether or not even post vaccines people are going to be super comfortable getting into

crowded subway cars, you know, with a wide variety of folks, diverse group of folks you know, i think we'll have to monitor it i mean, i think that one thing that's interesting about this, you know, this idea around regulation and the potential for rising costs as a result of it is that i think it really sort of invites a little bit of the long-term pitch that these ride sharing companies made around eroding personal car ownership right? i don't think that rising costs related to driver classification is really existential threat for the ride sharing companies i view it as a limiter, the higher the cost they're going to pass the price on, and that's going to reduce, i think, the use case, i guess, if if you will for ride share. >> we got to go. jason very quickly, why is peloton trading higher now >> because i think this is

overblown. this recall is not mandatory i think most people who have this premium, big treadmill want to keep it it's a shame that, you know, unfortunately somebody used bad judgment and let their toddler get access to this but i think most people will not participate in the recall. they probably will have to delay the launch of the new lower priced treadmill, we think the stock is discounting it, and we expect good results tonight. >> jason, tom. thank you. >> thank you >> i did want to take a look at shares of at home group, after news the company is, the treatment is a buyer, 2.7 billion. you can see trading above the $36 all cash price of the deal the journal i think reported on it yesterday, but, you know, overall, they're talking about it being a roughly 25% premium to what they call the 30-day volume weighted average share

price as so many of these co-private actions do, we'll include a go shop provision, meaning they could go to other potential buyers, and perhaps that's why you're seeing the stock trade 50 cents above the current price that they have agreed to contractually pay. that is resumed trading up roughly 17%. carl. >> david, as we get to a break here, take a look at our road map for the rest of the hour, including paypal touting the next generation wallet, getting a big boost from crypto. the triple tax threat real estate owners and investors should worry about under president biden's tax plan. >> and kelloggs rallies on continuing pandemic demand people keep snacking we'll have an exclusive with the ceo of kellogg coming upment "squawk on the street" will be right back let's see that one more time. "squawk on the street" will be

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which shows will you be getting into tonight? how 'bout all of them. netflix. 'cause xfinity gets you really into your shows. when one burns for someone who does not feel the same. daphne, let's switch.

from live tv to sports on the go. felix at the finish! you can even watch your dvr from anywhere. okay, that's just showing off. you get all of this on x1. so go on, get really into your shows. you need a breath mint. xfinity. it's a way better way to watch. crypto loans launched at 1% ramp, they will be 100% ramped by the end of this month, the end of may, and obviously, you know, if you look at, again, surveys that have come out recently, and you look at millennials, something like 74% of them anticipate that they're going to use crypto in the next year or two in some way. >> that's pay pal's dan schulman

on the earnings call, talking about a key growth engine, and that's the upcoming digital wallet joining us is charles, cofounder and ceo at pascos, thanks for being on >> thanks for having me on >> you said that demand for your solutions has accelerated a lot faster than you anticipated. i wonder, what do you think was gasoline that fueled the fire? >> i think paypal is a huge component of that. there was kind of the world before paypal and after paypal, everyone was afraid before, and everyone's afraid after but just for different reasons. everyone is wondering how can we offer this to customers, it's clear this is going mainstream everyone is looking for the way they can create a way to create community, and offer this asset class in a way they haven't done

before, and at paxos, we're doing that by being the infrastructure, and we're helping to power paypal, but also it's amazing the number of firms that are coming and thinking about this in a strategic way. i think that's a real important shift. >> so one of the long standing skeptical takes has been that price volatility was going to be a long-term inhibitor to payments and as a mechanism of payment because the price was swirling all around. at this point, how do you read that as a risk factor in the coming years >> well, i think it's still not a payment mechanism. the reality is it's still very much about speculation, and about the fact that it may become gold. and as it becomes gold, and assuming that happens, the price begins to stabilize, and becomes less volatile. you're still in this very big price discovery phase, and in that time, it's going to move in a very volatile way. whether or not it becomes a

payment mechanism, there's actually a lot of things that could drive that it may never be a payment mechanism. it could be a dollar stable coin that's the payment mechanism what you're really creating in the case of bitcoin, you have the possibility to own future gold in the case of ethereum, you have a chance to own the smart contracting layer that will replatform the financial system. that's what's driving the price moves here, and so that's a little bit different than thinking of it as a way that we're going to change payments today. >> yeah, charles, it's morgan. we're talking about bitcoin, we're talking about ethereum, we're talking about the possibility of stable coins, which i want to get into a little bit more in just a second what about dogecoin. >> that one has really accelerated and it just shows you there's a lot of community that goes into driving some of these tokens right now, and you're in this period where there's like explosion of different coins doing different things, and then there will be a weeding out process. my sense is that we're not trying to pick the winners at

paxos, we're trying to build the infrastructure it's hard to know how this is going to develop a lot of it is going to be the market weeding out winners and losers, based on community, functionality, reliability there's so much that goes into how a coin will do over time >> you know, it's funny, next week i've mentioned this already, i think souther byes has one work of art. is that a significant development as we see more potential uses for these currencies >> i think so. i mean, you know, like i was mentioning before, i think as a payment mechanism, still very nascent. and it's still unclear exactly how it will be frtreated, you know, by different types of regulators over time it's really obvious that it's creating a lot of enthusiasm, a lot of engagement as you had on dan schulman talking about how millennials are attracted to this you're seeing that with nfts,

with real art, and it's starting to become used for more than just speculation still, that's largely what's driving it, and i think, you know, what is going on with ethereum, which is replatforming assets that's why it's going up in such a big way right now. it's showing that it's not just about crypto it's about how can you change the plumbing of the financial system which obviously needs a whole upgrade here, and one way in doing that is with nfts and art work, having real world assets on a block chain. >> really quick, i hope you won't mind, got just a couple of seconds, i wonder how you think -- you think the fed's thinking on this is evolving before our eyes? >> i think so. you know, obviously china is pushing everyone to rethink this but also it's really clear that having a digital dollar, which is a little different from having an electronic dollar, and it's not meant to be esoteric about this the idea that you can create dollars that can move just like cash moves on a peer-to-peer

basis, that is a big deal that can really change people's access to the financial system, and it can change the efficiency of the system. and those are things that really need to be addressed and frankly, in order for the dollar to maintain its position, it has to maintain its technology, and be upgraded in a way that will work in this new world. we're getting to a whole digital world, how can you have whole digital dollars. i think it's something they're focused on it's gaining momentum a lot faster than anyone would have thought. >> all right which is where our conversation began. really smart charles, we appreciate it very much. thank you. charles casterillo. >> speaking of crypto, eamon javers has a look at the irs going after the digital currency >> that's right. these might be virtual currencies but people are going to have to pay actual taxes on

their gains here take a look at the ruling from a federal court yesterday. what they have done is authorize the irs to serve a john doe summons on kraken, the cr cryptocurrency in california you expect there might be wrong doing, and you want information on them. the irs is seeking information about u.s. taxpayers who conduct at least $20,000 worth of transactions from 2016 to 2020 this follows a similar move which happened in april, a federal court in massachusetts authorized the irs to serve a john doe summons on circle, the crypto exchange out of boston. i connected with circle this morning, what they told me is they are of course going to cooperate, and hope to work collaboratively with the irs on all of this. what's the tax law here? the department of justice put out a handy guide yesterday. they say virtual currencies that can be converted, are property

a taxpayer can have a gain or loss on a sale or exchange of virtual currency, and all of that depends on the cost basis, the price of the virtual currency that the person paid in the early on in order to buy that virtual currency in the first place. so morgan, as we look at this, and as you think about all the different ramifications of k cryptocurrency, is whatever their tax gains are and how they're going to sort that out with the irs. >> it's going to be a key factor in everything we're seeing in terms of these moves and something we're going to talk about more eamon javers, thank you. >> you may want to get off the grid, but the grid does not want to get off you. >> fair enough eamon javers, thanks. >> as we head to break, check out stairs of fastly and etsy plunging, these are two names that were high flying beneficiaries of the pandemic. etsy, for example, warning of slowing user growth. you can see shares of fastly

down 23% etsy down 13%. etsy down eleven we'll be right back. stay with us esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve,

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norwegian cruise, narrower than expected loss revenue down 99% seema mody has more. >> the market was expecting the travel boom to form, the commentary from ceos has been positive but results have been booked bookings holdings, very bullish on "squawk box" despite markets like europe lagging the u.s. norwegian cruise lines suggesting it needs more clarification from the cdc again after health officials provided more guidance on mock voyages that the cruise lines have to sail before getting clearance to return to sea. forward looking commentary continues to be encouraging, first quarter bookings double the volumes of prior quarter norwegian says it's experiencing robust future demand across all of its brands, but shares are down nearly 5% right now speaking of strong demand, new data shows that occupancy rate

for vacation rentals reached nearly 61% in march, well above pre-pandemic levels, he questioned for expedia, and reports tonight is how successful it has been in recruiting high quality hosts from competing sites like airbnb to virgo and addressing the supply and labor shortage issue. expedia outperforming airbnb and so far up 25%. expedia ceo peter kern joins us tomorrow on "squawk on the street." >> still to come, an exclusive with the ceo of kellogg, those shares are, they're up 7% right now. that's a notable move. we'll be right back. stay with us ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪

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welcome pback, i'm rahel solomon. india reaching another grim milestone as covid spreads into remote areas a record 412,000 cases and 3,980 deaths were reported as oxygen demand increases seven fold compared to last month, and in some cases, covid patients are dying after running out of oxygen world leaders are reacting to president biden's support for waiving vaccine patent protection the u.s. proposal has been endorsed by french presidents macron, and indian health experts. germany has also said it's open to the idea. indonesia is prohibits domestic travel during a popular holiday marking the end of ramadan the muslim country is hoping that the restrictions will prevent an up tick in covid infections and deaths. there was a sharp increase in the mortality rate last year following the holiday. and pfizer and biontech want to help athletes go for the gold. the drug makers are donating vaccine doses to olympic athletes and their delegations,

participating in the summer's games. it will begin later this month you're up to date. david, back to you. real estate owners and investors could get hit with three tax hikes under the president's tax plan robert franks has that story for us robert. >> good morning. from developers to families just inheriting a property, real estate owners face three big changes under the biden tax plan, the first is the elimination of 1031 exchanges. that allows property investors to roll their gains from the sale of one investment property into another without paying the capital gains tax. under the biden plan, they would have to pay that tax second is the capital gains tax itself that would jump from 23.8% to 43.4%, and would apply to the sale of real estate for those making more than $1 million in any one year now, keep in mind for the sale of a primary residence, you still probably would get that current exemption of $250,000 per person or a half million per

couple and finally there's the elimination of the step up in bases. that would really hit inherited properties if you inherit a property, you would have to pay a capital gains tax on any gain of the previous owner, even if you, when you inherit it, don't sell the property, begin your gain and the income would only be for those with $1 million or more. the real estate industry already fighting back against these changes. the national association of realtors sending a letter, treasury secretary janet yellen saying the proposals would reduce growth, shrink affordable housing and penalize many hard working and enterprising americans who have spent their lives saving and building equity in their properties. guys, you think about the number of properties that could change hands from one generation from the next to the next say ten years, especially in expensive communities or on the coast, and the amount of appreciated property value that we could see there is massive, and that's why

national real estate association and others fighting back against this. >> robert, the revenue raising possibilities here, do we have any numbers sort of to get a sense as to what they think that eliminating these tax breaks would actually raise >> well, not through real estate itself, but when you look at the elimination of step up and the increasing capital gains, they're talking around 6 to 700 billion over a ten-year period that combination itself, just hiking capital gains itself is actually a revenue loser, but when you add in the elimination of step up, then it gets to be somewhere, again, according to previous estimates around 600 to 700 billion. so it's a lot, and it could be more than they expected, again, because of this property angle and the elimination of 1031s. >> thanks, robert. appreciate it. >> guys, may is asian american and pacific islanders heritage month, and all month long, we're going to be spotlighting, cnbc contributors, business leaders,

and our own on air anchors and reporters. here's seema mody. >> i think everyone and their mom knows i'm very outspoken on topics related to india to the point where they're probably like, seema, enough, we get it big tech in india, india, india, here's the thing, it's not just because i'm indian it's where i got my break as a reporter in mumbai, where my family immigrated from to achieve the american dream no matter where i go next, my heritage, my ctuulre, being indian american will always be a part of my story

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it's not all amazon and walmart, our traders share their top lesser known ways to bet on the consumer on trading nation.cnbc.com. more "squawk on the street" straight ahead

welcome back to "squawk on the street," vista shares are under pressure this morning, down, it looks like about 7%

stock is up more than 230% in the past year. the parent company of outdoor brands such as federal premium, camelback, posted a record in fiscal 2021, driven by strong demand in outdoor products and shooting sports segments joining us is chris metz, vista outdoors great to have you back. >> it's great to be back and we look forward to chatting with you here. >> given the strong numbers, the fact that it was a written quarter, are you surprised to see the stock under pressure today? >> i am. nothing over the past year has been anything but surprises with the pandemic we posted a record 4th quarter off of a record year our eps is up 13 fold year over year, our ebita up 50% sales up 47% in outdoor products business spectacular quarter and there's a lot to play out in our stock prices as we go forward. >> just to zoom in on shooting sports specifically. 37% sales up tick. gross profit rose 130% as well

i know we've talked about it in the past, but the fact that we're seeing not only robust but even just looking at the gun manufacturers themselves in this recent quarter record sales, you do sell ammunition and other supplies, equipment for shooting sports why the strength, why does it continue and i guess how would you expect that trajectory to continue to play out over the coming year? >> morgan, good question it's enjoying the same underlying friends that a lot of outdoor products businesses are because at its purity, it is an outdoor products business. we've welcomed in over a million new hunters that are embracing not just farm-to-table but field-to-table we're also seeing a much more diverse user base, a lot of gen xers, a lot of millennials new users are women and people of color it's an incredible amount of interest in shooting sports, whether it be hunting, target shooting, sports shooting, what

have you. >> and you're running the factories for ammunition 24/7. >> that's correct. and halts off to our folks think about how hard you've got to work through a pandemic like covid. our folks have worked 24/7 we have recruited people to augment the kexisting work forc. couldn't be happier without the hard work of our folks. >> let's talk about direct-to-consumer i spoke to the ceo of columbia sportswear, and one of the things they talked about is the fact that this outdoor bloom he doesn't see it going anywhere it's now, i guess, even more a piece of the fabric of daily life how doo you see it, and how do you see ecommerce continue to go fit into the broader sales mix >> morgan, we see it the same way. we think it's an actual structural shift i can talk about our outdoor cooking, biking, golfing, camping, water hydration, all of those categories have welcomed

in new users, people that are camping for the first time, and have really told us through market research that it's going to continue to go forward. now, one of the things we did when i walked in three and a half years ago, we started building out all of the piping and plumbing for ecommerce so that we can sell our product in a frictionless way, whether they want to shop with our great retail partners or whether they want to go right to the brand itself for us. our business is as robust as our overall ecommerce business. >> let's talk about the balance between higher costs and the potential for higher prices to those end markets right now, what are you seeing in terms of that mix, and how would you gauge supply chains and what has been for i think many companies including yours, i know, in the past, bottlenecks at the ports and whatnot. >> that's right, morgan. so inflation is here every input cost that we see has gone up and continues to go up and fortunately, like basic

economics it's supply and demand, and where there's demand, we are able to pass along that pricing to our customers and our consumers, and they certainly understand given the unprecedented rise that we're seeing inflation low logistics is our biggest worry area because of the shortage of input materials, and not necessarily a risk it our plan and the way we have guided but certainly a risk to how much upside we can deliver beyond our plan. >> chris mets, thank you for joining us today. >> thank you, morgan. >> got a couple of big interviews coming up on tech check at the top of the order, general atlantic ceo bill ford is with us we'll talk about the ipo pipeline, his top investments in tech, and then an exclusive with michael dell that begins at the top of the hour in the meantime, nasdaq onace p for the worst week in a couple of months. we're back in a minute

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oh, fifth time's the charm elon musk's spacex launching and successfully landing, the latest prototype of its starship rocket yesterday. in a high altitude flight test, the fifth such test, and the first time since just december, the 16 story steel prototype didn't explode, i should say, or

meet a fiery demise. starship is the reusable transportation system the company is developing to carry people and cargo to the moon and mars it's also the subject of recent controversy after nasa awarded spacex a nearly $3 billion lunar landing contract three weeks ora large contract protested by blue origin and it's a milestone moment for mother rocket and means spacex moves forward in testing testing what is, from the space industry standpoint, a very, very fast pace. >> i could watch that all day. look how cool that is. amazing. i'm easily asemud. ceo of kellogg joins us. the stock price. your

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sharpliy see today the cereal and snack company posted strong quarterly seams and increased full year financial outlook. joining us in a cnbc exclusive,

ceo of kellogg steven cahillane what about the confidence and in a still uncertain business environment? >> thanks, david got off to a very good start, clearly. relentless focus on excuse in the marketplace. keeping plans operating, our people safe, the things that guided us, but when we're cycling 2020 and the pandemic surged and we put together our plan, we looked back to 2019 looked back to 2020. ex covid and figured what exactly is a winning plan and we're ahead of that. we thought 2020 might represent a high watermark for sales for a period of time, we're confident we can lap that based on execution in the marketplace and confident enough to raise guidance slightly. even though it's early in the year and a lot of uncertainty.

>> you point out tough comparisons given last year and heart of the pandemic. this year, the hope people will be going out and are already and will continue to what is your sense as to whether they're going to continue to consume kellogg products at the same rate given that >> we're confident they will we've been making investments, working hard to make the gains we've gained during the pandemic stick and recognize that people are going to become more mobile, eating out more. clearly that's the case. a pretty big away from home business that will benefit as people become more mobile and it's up to us to make sure when they're at home, eating meals at home, we're a part of that consideration set. they think about eggo, think about our cereal our snack business continues to do very well pringles, cheez-its. and we feel we can continue to execute even as people become more mobile and continue to win

in the marketplace looking at emerging e ing marke. done tremendously well a lot going on a lot of challenges but we're focused on execution and confident we can continue to deliver. >> another challenge, at least, seems to be inflation. your cfo asked about it a number of times on your conference call certainly indicated, yeah. it's real. seeing an acceleration again what are your expectations what are you seeing in commodities you rely on and how are you going to deal with it in terms of potentially passing it on to the consumer >> dave, you know, inflation is real it's here. it's significant so for the first half of the year, our team has done a terrific job with our hedging program. over three quarters hedged the back half of the year becomes a different story. inflation environment actually accelerates. we talk a lot in our company about needing to earn price in

the marketplace. so it's not just a simple thing about going and raising prices it's innovating. investing behind your brands making sure that your brands really move off of shelves so that you, as you take prices up, you can continue to keep velocity there we'll look to the host of tools at our disposal. productivity, also revenue growth management. we call price package manager and also pricing as well, because we're broound and determined to keep our margins healthy and grow on a two-year basis. that means we have to keep up with pricing and inflationary environments but we have good plans in place good investments behind our brands good momentum and velocity making us confident we can do that. >> talk about innovating this is morgan, steven most iconic kellogg brands, the cereals, pop tarts

cheez-its, pringles, and foods just mentioned comfort food how do you balance that piece of the portfolio against the fact -- this is perhaps even more in focus as people emerge from houses in a more meaningful way -- against healthy options, too? i say that knowing you have that as well, morning star. >> we have morning star. doing incredibly well, great momentum biggest brand in that whole space. we brought incognito along as a subbrand off to a very good start. we have a wide array of choice in our portfolio you mentioned some of our snacking brands, which are doing incredibly well. mentioned morning star farms an array of products that suit consumers for all the different occasions that they're thinking of, and although health and wellness really has taken off, you know, pre-pandemic, but pandemic made people really focus on health and wellness,

snacking has not slowed down in fact, snacking has sped up's we believe in choice at kellogg, a real bifurcation in terms of health and welfare and indulgence on the other and there to offer the choice to the consumer, and they're voting with purse strings and we've been doing pretty well. >> steve, finally asked about return to normal what about at kellogg itself in your executive suites and offices? what are your expectations for getting employees back and how many are coming back so far? >> yeah. so right now, you know, our office never closed. our headquarters office. because we're in the food business if we're going to have our people going to plants each ander day, working safely, making food. essential workers also here at the headquarters building that never stopped coming in. slowly people are returning to the office i don't expect that will change meaningfully until kind of mid-summer, and then especially

towards the end of summer as hopefully kids get back to school on a full-time basis. mom and dad can get back to work and the office on a full-time basis, but i suspect that they'll be much more of a hybrid approach and that working from home will always be an element, much bigger element going forward. >> stephen, always appreciate it thank you. >> thank you. that's going to do it for "squawk on the street. "techcheck" starts right now. ♪ good thursday morning. welcome to "techcheck. i'm carl quintanilla with jft jfrt and deirdre bosa. light at end of the tunnel jon fortt with me as well. work from ho