half of the east coast fuel supply remains shutdown after the operator was hit by a cyber attack fuel prices are up a little. maybe not as much as you think dogecoin plunge during elon musk hosting stint on "snl" but other cryptos are higher ethereum is surging above $4,000 travel picking up in the u.s. as the biden administration considers easing more pandemic restrictions it's monday. it certainly is. may 10th, 2021 "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. let's look at the u.s. equity futures. you did see the dow set a record on friday. that was the 24th record it set this year. this morning, it is indicated up again. up by 63 points. if we were to open at these levels, this would be an intraday high. up 63points. it needs 34 points to be setting a new intraday high. we are above that now. a slight pullback for the s&p 500. the s&p 500 needs five points to be at an intraday high dow had five days in a row s&p is up for three sessions in a row. this morning, dow indicated down nasdaq took off on friday with the weaker jobs report that brought yields down if you check things out this morning, treasury yields have turned around.

a temporary blip this morning, the 10-year is at 1.583% and so many stories to follow this morning joe mentioned the colonial pipeline hacking you will see prices and things have started to pick up. the wti crude is up .48. if you were looking at our futures, the futures are up 1.2% lumber prices are unchanged. guys, they set another new record on friday guys, if you have been watching this, lumber prices up 49% my brother and sister-in-law were thinking about putting in a

back deck. the price came in at $60,000 that price has jumped. you see what consumer are paying bitcoin and ethereum up this morning. ethereum up 5.6% that is a new high for ethereum. dogecoin, guys, check it out down 12% this morning. it was down 35% over the weekend as elon musk called about dogecoin and called it a hustle. it setoff a panic. it is down 12% this morning. andrew. thanks, becky. you saw the news the lesson on dogecoin and snl we'll talk more about that today. as becky mentioned and we're talking about fuel prices jumping overnight after the cyber attack causing a shutdown of colonial pipeline the largest pipeline carrying fuel from the gulf coast to the northeast. it happened on friday night.

halted all pipeline operations as a proactive measure it transports 2.5 million barrels per day of gas and diesel fuel and heating oil and jet fuel it carries half of the east coast supply in total. price jumps coming as americans ramping up for travel in the summer driving season as well. a lot to watch in terms of economic impact and all sorts of questions of the cyber attack and what that means. joe. thanks, andrew i was following along with the rundown. the headline here is divorce drama. divorce drama. okay let's get into it this morning details about one of the most expensive divorces in history. melinda gates consulted with divorce lawyers two years before

she filed for divorce. that is the same time, october of 2019, that the new york times reported that bill gates had met with convicted sex offender jeffery pstein and once stayed late into the night at epstein's manhattan townhouse. bill gates said he met with epstein to discuss philanthropy. he regrets ever meeting with eps epstein. the journal said melinda told bill she was uncomfortable with epstein back in 2013 becky. >> thanks, joe in the meantime, the biden administration officials say the united states is entering a new phase of the outbreak and more relaxed rules may be coming. asked yesterday about whether it is time to ease indoor mask requirements dr. fauci said he thinks we will see that as we go along and officials need to starting, what he said, more liberal, as

vaccinations increase. dr. fauci said they iwill updat almost in real-time as vaccinations increase. 58% of adults received at least one shot also travel is continuing with a record number traveling this weekend according to the at&t tsa. 1.7 million people were traveling this weekend guys, i don't know if you traveled this weekend, but one thing i noticed for sure is driving down to see my mom there was a lot of traffic on the roads especially yesterday hour delays to get across the gw bridge i saw accidents in a lot of places car insurance companies that have gotten by not having to pay

claims because people weren't driving as much, it seems like things are back to normal. >> traveling locally they didn't travel that far. within 25 miles. it doesn't matter. it is totally different now. a couple of times -- i will never miss the pandemic once it's gone. man, the traffic is coming back. ugh. here we go waiting at lights where it is not a fast light i see where i am and i see i'm putting in time. it will be three lights. with all of the left turn signals and this and that. you know, five minutes these are all small problems and it is good and i'm happy restaurants are looking better i feel when i go, it is vaccinated and everyone in the family vaccinated. it is liberating it is good all good not complaining.

except it's monday. >> it's monday >> we had the same traffic problems visiting my mother. second happy mother's day to you, becky we have more coming up i didn't read this when i used this phrase before. now we're going say it again buy the rumor. sell the news. dogecoin plummeting on elon mus hosting "saturday night live." we have more on the performance next i may have a review from my kids who watched it multiple times. as we head to break. check out the price of lumber after the surge of 360% since the onset of the pandemic. "squawk box" returns after this. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com.

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welcome back to "squawk box. spacex announcing it will accept dogecoin for the mission to the moon i don't think this is a joke elon musk said it will involve a satellite sent and paid for by a company which says its missions

financial value was not disclosed. you can look them up online. i have about a million questions if you go to the web site about who they are and what they do. meantime, elon musk tweeting about the deal calling it the first crypto in space and the first meme in space as well. of course, all of that came shortly after elon musk's "saturday night live" appearance dogecoin soared in the run-up on the appearance and then then >> what is it, man >> i keep telling you it is a cryptocurrency you can trade for conventional money >> oh, so it's a hustle? >> yeah, it's a hustle. >> why don't you just say that >> to the moon >> doge fell 36% saturday night.

losing $10 billion in capital. it recovered losses on sunday. joining us to break it down is the founder of the digital chamber of commerce. good morning to you. before we get into it. do you have a review of this my sons watched. not live, but we all had conversations about this they said, dad, that was really weird. that was the sorkin family review of elon musk on "snl. what did you think >> it is really weird. as you mentioned, dogecoin is above a $60 billion market cap today. it is a conundrum to me to really understand how this joke won't go away. i'm glad you replayed that key clip from "snl." he did reveal something very telling that it is a hustle. what people need to understand

is that elon musk is a holder o dogecoin as more people are buying this cryptocurrency, you are playing into his hand or his hustle. >> what should we think more broadly of this? if doge is a hustle, is bitcoin a hustle is ethereum a hustle ethereum is at the all-time high it does appear to have a use case i would argue that ethereum has a better use case than bitcoin in how it could get used at the same time, there are some who say the success of something like dogecoin effectively makes a mockery of all this. >> i have said that before dogecoin is a hustle for elon musk you cannot compare bitcoin and dogecoin we have been watching the dogecoin market for some time with great concern what people and investors really

need to understand about the key differences between dogecoin is that, one, there is no hard cap on the number of dogecoins that can be produced. there are 21million bitcoin. that is the key attributes of bitcoin. dogecoin does not share that it is volatile it has no original code. it is a copy of bitcoin. it does not have a robust developer community behind it like bitcoin and other more reputable coins like ethereum. what if something goes wrong who will be there if there's a hack or if there's an issue? there is nobody there. there's a lot of marketing resources that are being pushed into the dogecoin community. what is important is the underlying technology which lacks key attributes that

bitcoin has. >> let's flip the conversation and talk about ethereum because how high it has moved over the last couple weeks and now today. what do you think the fair value for ethereum is given the use case and there are lots of people programming on top of it and planning to use it how should people think about the actual value i know people talk about protocols over the years and ho this may be considered the next protocol those protocols never had, quote, value assigned to them. >> it is a little early to tell who is in what protocol is the leading smart contract space this is different than bitcoin the key use case today is historic value when it comes to cryptocurrency used as historic value, bitcoin

is the winner. ethereum was created to be a smart contracts protocol it has a lot of competition from many other cryptocurrencies and protocols out there. it is too early to tell who the winner will be and it is very hard to value ethereum because of that. >> okay. help the audience. if you weren't going to invest in ethereum or bitcoin, is there another crypto you would think about? >> it depends on what the use case is. if you are looking for hosistor value, bitcoin is the winner if you are looking for smart contract value, there are many out there. if you are excited about the defy space, there are a number building in the defy space if terms of investing, do not invest in things you don't

understand you have do dto do your diligene >> you don't want to make the next call of dogecoin or ethereum >> there are many cryptocurrencies that we're excited about. there is only going to be a few winners. it really depends on why you are investing and the key use case is behind it >> okay. thank you. i appreciate it. possibly the most responsible thing somebody could say in the world of cryptocurrencies. there is a lot and do your research joe? okay thanks, andrew i didn't stay up and see that. i'm trying to think the last time i was up at 11:30 for less than a minute. i'm up at 11:30 many times usually, as i say, briefly can i just tell you this, dzho

sorkin >> yes >> what he said about aus ausberger's. i spoke to my son that morning you have no idea it really enables you and makes you feel better about yourself amazing. >> for anybody who has different abilities. >> the richest guy in the world. that smart >> i love him for that not like some of the things he has done in the past the idea that is part of the reason he tweets some of the things he tweets and apologizes for that okay i get it >> because it's difficult. they're so gifted. many things on a daily basis that make it difficult and just to have someone you see like that and say, wow. he has ausberger's.

and coming up, what the 1% pay in actual tax. robert frank has a look at that. we adashe to break, this is what we see with the s&p gainers. >> announcer: this cnbc program is sponsored by truist financial.

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let there be change accenture the white house says the proposed tax hikes will create a fairer economy that's good. we all want that robert frank decided to take a look at what the 1% really pay now and he will define fair for

us so we all know what the hell we're talking about. robert >> reporter: that's all in the eye of the beholder, joe i will tell you the math president biden wants a tax system where wealthy investors no longer pay marginal rates less than the secretary. the wealthy pay the highest rates and large efshare of taxes top 1% paid 3440.1% of federal taxes. more than twice the share of the 1980s. average effective rate what they pay when you include the credits and deductions that was over 25%. you compare that to middle class. they pay 7%. bottom half of americans pay 3%. top 1% paid effective rate more than three times higher than the middle class the average 1% had income of

$1.7 million a year and paid federal income taxes of $427,000 they pay more of a share because they earn more of the nation's income the total share of income fell in 2018 to 20.9% the 2017 tax cuts lowered taxes paid by the wealthy, but the rest of america got the tax cut so the share paid by the wealthy grew the main reason for that is s.a.l.t. joe. >> if you don't like those numbers and andrew wants to get in here. i don't know why go ahead, andrew let's hear it. >> the question i would ask if i was bernie sanders this morning, i would say the numbers on the federal tax level, we see what you are saying if you put all of the taxes

together, sales tax, local taxes, social security, all of the things out of the paychecks and the like what do the numbers look like? >> reporter: obviously the share goes down and effective tax rate for some people in some states, actually in the middle class, as percentage of income, would be at or above the wealthy. the other side, the right would say, you have to include government transfers that is all the money the government pays out in terms of child tax credits. when you add that back in, then you get a number for the wealthy that is a higher share of taxes. both sides like to include their own set of numbers to make the numbers look better or worse for the wealthy. that's why we're just looking here at federal income taxes which, again, you know, except for a small group at the top, the top 1,000 taxpayers pay a higher rate the more you earn in

america. >> all right that's what bothers me robert, just be honest about it. most wealthy people do not pay a lower rate than their secretaries pay. it's a very, very top because of capital gains and we'll change that fine it's what we need to do. when people in charge say things like that, fully knowing they are dissee mbling and democrat go demagoging a very progressive system right now. it can get more progressive. go for it. do it in a way that doesn't hurt capital formation. if you want wealthy to pay more,

be honest. don't look at them like they are not paying taxes what is the 1% how much does the 1% pay >> 40.1% at a tax rate of 25% which is three times the rate that the middle class pays >> robert, whatever happened to the alternative minimum tax? if you are talking about a small number of people at the very top. 50 of the wealthiest people paying a lower tax rate, can't you capture that through a new alternative minimum tax? >> you absolutely could. it is interesting because the a.m.t. still existing. it was just watered down and made less effective in 2017. you are right. the a.m.t. was effective bringing the rate for the top 1% up many people think that is one solution to bring that back or give it teeth. this is surprising to me, becky. you raise a good point

a.m.t. is not part of the biden plan and not mentioned by anyone in congress. s>> robert, a question for another day. thanks when we come back, senator pat toomey is fired up by president biden's tax propospro and much more on the hack attack that shutdown a massive fuel pipeline to the east coast. brian sullivan has been working the pheson he joins us next with the latest >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. th . okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown,

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welcome back to "squawk. brian sullivan has the latest on the colonial pipeline and the impact on the energy market. good morning, brian. it has been quite a weekend. >> it has and andrew good morning i know you hit it at the top of the show this is america's energy artery.

the single most important pipeline in the united states. we have millions of miles of pipeline none carries so much fuel to such an important area there is the path. this takes oil and gas, jet fuel and refined products from the houston and louisiana areas where they get crude oil and refine the products and brings it up the east coast a lot gets taken off in georgia. the green are the arteries the branches the yellow is the main pipe through virginia and new york and new jersey we're talking about 45% of the fuel product used on the east coast comes via the colonial pipeline 14 states, 7 major airports. this is a big deal it is offline almost entirely. the company saying last night that certain of the branches, green lines we showed you, may come back online

main lines overall is down we don't know why. colonial pipeline shut the lines down itself. the hackers did not shut it down colonial shut it down pro-actively to quote contain the throeat. we don't know the threat we don't know what power the hackers may have or had over the pipeline in other words, why the threat was so serious they may have had to shut it off to prevent something catastrophic and how much money they are demanding and if colonial will pay becky noted that calls and texts remained untethered, guys. here is a ten-year chart of the colonial pipeline. it has gone down before. gone down in small ways and gone down in big ways thankfully, aside from short pops, guys, we have not seen huge price spikes from colonial

shutdowns. red circles are major problems with the pipeline. you see the longer term trend. itandrew, to how long it is down. not necessarily that it is down. right now, we have enough psuppy for a couple of days maybe longer. >> brian, i have a million questions. total costs to colonial? we talked about cyber insurance for years. does cyber insurance cover this kind of catastrophe? i'm sure other business leaders are watching this morning. this could happen to me. what do i do a handful of questions to bat around >> eamon could answer this better a variety of other insurance to the first question he, andrew, the total cost, we don't know colonial is private. it is owned by five names you know well. kkr is a part owner.

one of a pension company from australia is a part owner. quebec is a big investor koch brothers capital. a big owner. five big owners bought this company. the company was formed in the 1960s. there you go thanks shell midstream. those five own 20% some more, some less based in alphretta, georgia. an operating sub subsidiary. >> brian sullivan, good to see you. thank you for bringing us the news we'll talk about this more throughout the week with you becky. thanks, andrew the dow and s&p closed at new records on friday despite the disappointing april employment report joining us with the post jobs

strategy session is tiffany mcghee tiffany, you are looking at jobs differently than you had been before you think there is a new wave that will change the way we as a country are looking at the companies. that could help some companies in particular. >> i do, becky i was listening to president biden's press conference last friday and talking about jobs. really talking about a job being more than a paycheck it was about respect and dignity. i certainly appreciate that and agree. i think there is a missing piece. that's quality of life for the past year, you know, we had time to think about our current jobs and gotten used to working from home and eating lunch with our kids and having more freedom and control over our day. in some cases, people are making more money in unemployment than when they were working

we also have major challenges with child care. there are all of these things culminating together i am looking at three themes people starting new businesses is the first you know, there were more new business applications in 2020 than in 2019 it was actually up over 24%. the biggest increase in new business applications filed in the past ten years that's pretty significant. in this theme, i like the name like swear i like the ecosystem it helps, you know, business owners start, run and grow their businesses it provides software and hardware for their customers the second theme is people changing jobs. we have been sitting home thinking about our current roles

and we had time to reflect on whether we like the position we're in i do believe we're seeing a lot of people changing jobs. also, companies are looking for top talent particularly with diversity inclusion. i like korn ferry. in addition to executive search, they also do leadership and talent consulting as well. i also like docusign no matter what business you own or business you are operating in, docusign is a business that works either way >> yeah. tiffany, obviously what you are talking about is people reconsidering jobs and organizations reconsidering staffing that plays into korn ferry doc docusign has seen a run up you think there is more room to run for all three of these

>> i do. you know, a lot of us have been talking about when we have a vaccine in full distribution and move more freely back into the world. a lot of people have been playing this reopen trade. what we're doing is looking for names that we think will weather the storm well past the reopen period in our new normal listen, docusign is a life sasail sailer saver for us in our business in the case you need that signature. in the pandemic, it forced businesses to have to do that. use a company like docusign. i think they are never going back because it is easier now. >> tiffany, thank you. i know exactly what you mean docusign made lots of lives

easier i don't see that go ging away coming up on the other side of the break, we will get you ready for the trading week ahead from earnings to key inflation data don't miss the interview with chicago fed president charlie evans here on "squawk box. "squawk" returns after this. >> announcer: business is sponsored by wisdom tree the modern alpha pioneer sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities,

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welcome back to "squawk box. major earnings on the docket we will hear from marriott on wednesday, toyota and softbank bumble then 3thursday, disney and alibaba and airbnb we will get the consumer price index on wednesday as well followed by the ppi read on wh wholesale on thursday. on friday, retail sales and import and export prices a lot of data to chew on that may move the market around joe. thanks, andrew senator pat toomey on president biden's tax plan and the

disad disappointing jobs numbers. and check out the latest on facebook and alphabet. analysts talking about growth de decel deceleration >> announcer: don't forget to sub subscribe to our podcast look for us on the favorite podcast app. subscribe to squawk pod today. to meet the world's needs while creating a cleaner future for all. at chevron, we're lowering the carbon emissions intensity of our operations, investing in lower-carbon technologies, and exploring renewable fuels of the future. we work hard to care for the homes we love. but it's only human... to protect the one we share.

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the senate finance subcommittee on taxation will hold a hearing tomorrow on closing the tax gap. joining us to discuss this and

president biden's tax agenda is pennsylvania senator pat toomey. a member of the committee. senator, it is good to see you >> good morning. >> a big two-headed monster. it is what we it and i don't see a lot of agreement with republicans in this administration on either. so even if you guys and gals got it down to $600 billion or $700 billion, you'll have to figure out how to pay for that. can you get it to be just infrastructure, or eventually through reconciliation are you going to have to pay for $2 trillion >> the big question is, will the president work with republicans on the areas where there is a consensus? and that is actual infrastructure but just as the last big giant blowout bill that they passed

wasn't really about covid, the president's proposal is not really about infrastructure. most of it is about expanding the welfare states, making middle class people dependent on government with all kinds of programs that have nothing to do with roads and bridges and ports and airports so if the president's willing to focus on what we all think of as infrastructure, then there's republican interest in doing something in that space. and i think the way to pay for it, joe, is the hundreds of billions of dollars that have been authorized through recent bills but haven't been spent yet. take just one item from the last big blowout bill it's a line term for k-12 education for schools. and it's supposed to be about covid. it's $126 billion, which only six, six are going to be spent this year. the other $120 billion are for years in the future. that has nothing to do with covid. why don't we repurpose monies that haven't actually been committed yet?

you know, our state and local governments, completely awash with cash. actually, they were, and then we sent them another $350 billion they don't know what to do with that, literally. so there is an opportunity to repurpose money, put it to better use, have the agreed upon actual physical infrastructure items. and i think we ought to be able to agree on that i don't know if the president's willing to. >> you don't >> i don't know. we're going -- we're supposed to meet later this week, a group of republican -- >> i think maybe you have a pretty good idea. >> well -- you know, joe, here's the tricky part though would the president prefer this giant new multitrillion dollar latest way to make more people dependent on government? yes, i'm sure. but if they're going to do that they're not going to have republican support, and they need every last democrat in the senate and almost every last democrat in the house. and that's a tough thing to do

so i'm not sure they've got the votes going down that path maybe they need to work in a bipartisan fashion, and find the areas where there's a consensus. >> and, you know -- go ahead. >> just not interested in ruining the tax reform that gave us the best economy of my lifetime i mean, this isn't like ancient history, but just before the pandemic hit we had the best economy we've ever seen. i mean, booming growth asset prices high. more importantly, full employment there were more job openings than people looking for work and record low unemployment. but for almost every demographic group. and wages were growing and they were growing fastest for low income people. so all the while this is happening, we're narrowing the income gap as well so i asked my democratic colleagues a simple question what would be so bad about going back to the best economy of my lifetime you don't get there by unwinding the tax reform that helped to

get us there. >> well, we have guests on all the time that go back to 2008 and -- i don't know, they go back to the coming out of the financial crisis for where the economy started, that's where all the job growth was you have people that will openly -- they will. they'll openly dismiss -- they'll openly dismiss that argument that you just presented. >> well, it's a factual matter that the economic growth and employment and wages were accelerating after the tax reform just like robert did a great job laying out the income case you know, the fact is the top 1% make about 20% of all the income and pay about 40% of all income taxes, and somehow that's not their fair share so we've got this notion that these folks have to be punished. and so the capital gains tax rate seems to be the preferred vehicle for the day. and the biden administration is talking about raising it so high

that even left wing economists acknowledge you will bring in less revenue than it does now. how does that make any sense >> hey, senator, hoping you can comment on the jobs picture. i don't know if you saw steve rattner put out a fascinating chart actually using your state of pennsylvania showing that right now if you are a dishwasher in the state, if you are a hotel clerk, and if you are a preschoolteacher, you make more money from taking effectively the unemployment benefits than you do from actually working. >> right. >> and i'm curious what you think about what that says about both the benefits, but also the wages for these jobs i was actually surprised that a preschoolteacher in the state is effectively making what looks like less than $14 an hour. >> so, andrew, it is, in my mind, it's a very, very badly flawed design when you

systematically set out to pay people more not to work than they can make working. we made this argument back in march of last year when this madness began. the democrats insisted it was nonknegotiable we would have to have this federal government state unemployment benefits or they wouldn't come along and it's been extended, going through september. and there's no question this is keeping people out of the workforce. the answer for low wages is demand for workers, as i just mentioned, one year ago before the pandemic hit, we had accelerating wages and they were growing fastest for the lowest income workers, demand for workers was off the charts that's the way you increase wages and the standard of living through a booming economy. not some crazy system where you pay people more not to work than they can make working. >> all right, senator, pat toomey, how long do we have you for, now, counting it down >> you're stuck with me for

about another year and a half, joe. >> okay, all right it's a hue wee louie story, we're happy to be stuck with you, senator, thanks. >> thanks for having me, guys. >> you're welcome. becky? thanks, joe, when we come back, anthony scaramucci joins us to talk about why april jobs number was so low. plus, dr. scott gottlieb, skether states will ease indoor ma restrictions in the coming weeks. "squawk box" will be right back. the moxie showerhead speaker. only from kohler.

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the largest fuel pipeline in the united states remaining shut down following a cyberattack the latest on the situation, and a check on oil and gas prices is coming up. the biden administration loosening covid restrictions as warmer weather approaches. where we stand in the pandemic from dr. scott gottlieb. and elon musk taking center stage over the weekend on "started night live," investors in dogecoin were watching. more on the move in cryptocurrency straight ahead as the second hour of "squawk box" begins right now

♪ good morning, welcome back to "squawk box" right here on cnbc, i'm andrew ross sor quinn along with becky quick and joe kernen, and steve liesman. i'm sure we'll have steve back in a few moments at least the top of his head he's doing work, hard at work reporting, and looking at those numbers. >> this can't be right yeah. >> meantime, take a look at u.s. equity futures at this hour on this monday morning, we're still about 2 1/2 hours before the official hope but the dough looks like it would open about 105 points higher, literally moving as we're speaking t s&p 500 up, the nasdaq lower, 42

points other headlines to tell you about, the cdc saying international travelers coming into the united states will be allowed to use certain self-administered covid tests that will make it easier for passengers to meet u.s. requirements, any test used must be approved by the fda and be supervised remotely by a telehealth service meantime the price of gasoline continuing to rise take a look. the latest survey showing prices up 6%, or 6 cents over the past two weeks to an average of $3.02 per gallon it's an increase of $1.05, though, from a year ago. the price of cryptocurrency, ether exceeding $4,000 over the weekend, and dogecoin after elon musk said this during his appearance on "saturday night live". >> what is it, man >> i keep telling you, it's a cryptocurrency, you can trade for conventional money. >> oh. so it's a hustle. >> yeah, it's a hustle.

>> why didn't you just say that, man? it's a hustle. >> more on musk's snl appearance coming up in the next hour it's a hustle, joe we're all hustling. >> he was kidding. i think he was -- he was kind of kidding. i don't know what's going to happen with dogecoin can you really pay for your moon trip with that i don't know he is -- he said some other funny things remember where he said -- he said did you really think i was going to be a normal, chill guy? i reinvented the electric vehicle, and i'm sending people to mars. you really think i was going to be some normal person just sitting here he was very -- i think it was a big success for him, as i was alluding to earlier. >> huge success for him. >> amazing. >> for him and for, you know -- now we're looking into dan aykroyd, saying he was diagnosed

with -- i think it was amazing, really good, and i thank him for it. meanwhile, elon musk, spacex announcing it will accept dogecoin as payment for a mission to the moon. the company will launch the mission in the first quarter of next year, involving a satellite being sent and paid for by geometric energy corporation, the mission's financial value, though, was not disclosed. i know for a fact liesman's leer and ready to go. >> he is. >> totally prepared now, i think, because he was grinding. >> he was, he was crunching the numbers until the last minute. a lot of people have been wondering, is the u.s. economy about to experience a lasting shortage of labor? that's the question we've been asking ourselves since friday. senior economics reporter steve liesman joins us right now with a look at the implications for investors from the big jobs miss on friday. what do you think, steve >> you know, becky, forecasters

spent the weekend soul searching their models if you will to figure out what went wrong with friday with what amounted to one of the biggest jobs misses in decades. divided in two camps those who say it's just a blip and those who were -- hey, the u.s. could be settling into a more permanent labor supply shortage jp morgan is in the benign camp, saying it's hard to square this middling outcome with a variety of data. i crunched some numbers this weekend. school openings and closing, april reported the biggest one month increase in schools reopening since last october school openings, you can see, they're closely linked to women aged 25 to 54, returning to the workforce. instead the percentage of women in the labor force unexpectedly dropped, and it should have gone the other way. it could be more women would look for work in the months ahead or with school years so close to ending they may not come back until the fall

exacerbated with a supply shortage, that could combine with higher unemployment benefits and the reluctance of some to return to work for health reasons, the pressing labor supply during the summer in fact, economic growth remains strong but labor supply remains limited, wages could be bid up and the fed could have an inflation problem, which is what ian shepherdson worries about over the weekend a run of hefty price increases would make for a long and uncomfortably hot summer for the fed. jobless claims and retail sales watching all that closely to see the interaction between jobs, growth, and inflation. markets can listen to fed speak this week and see how much concern the fed -- concern the fed has retention over labor supply and demand. we're putting this question directly to chicago fed president charles evans. we have an exclusive interview coming right up here on "squawk box" at 8:30 joe? >> steve, thanks. fuel prices are jumping overnight as much of one of the largest pipelines in the u.s.,

much of it remains closed, following a sicybersecurity attack, gasoline futures jumped 2% we need a few more decimal points to get that exactly right, in case you're wondering. while heating oil futures rose 1.2% to 2.03 rounding that off for you. the hacker group linked to the colonial pipeline ransomware attacks, relatively new, but extremely organized. we're joined with a look at this group known as dark side aman >> it's the number one suspect, tricky to do attribution, but that's who experts think is behind this, they're a relatively new group ransomware as a service, they offer it to other criminal gangs and the other criminal gangs do the actual attacks, and then kick back money to the dark side group that launched this

ransomware in the first place. it's sort of a criminal syndicate, if you think of it that way, and the folks over at cyberreason, a cybersecurity firm, have been doing analysis of this bad guy group, they put out this report in april on dark side, and here's what they found. they're targeting mostly english speaking countries, and they avoid former soviet bloc nations and that might give you a clue as to who they are and where they're located. they have a code of conduct they publish on the dark web that prohibits certain attacks on hospitals, non-profits and governments, known to be highly professional the group has a help desk to facilitate negotiations, they also have a phone number you can call to talk to an agent there if you need some help paying your ransom, if you've been hacked they claim that they donate a portion of the stolen funds to charities here, although there's been some dispute in the charities apparently refusing to take this money because obviously it's coming from a criminal gang. and also threatening to his nasdaq listed companies and

threatening to release sensitive market moving information on those companies before that information is public. so there's a whole range of different hostile activity being undertaken by this broad group known as darkside. it's not clear exactly who they are, or exactly where they are, joe, but the idea is that because they're protecting, so to speak, their own neighborhood, the former soviet bloc countries and targeting english speaking countries you get a sense of maybe who's behind all this. >> do they mention dogecoin at all, would they take it? or would they -- do you think they'd rather have a more established maybe bitcoin? >> i don't know if they have the risk appetite for dogecoin. >> how do they want it >> they do ask for crypto. some of these bad guys groups will ask for minaro, a more

anonymous type of crypto they take all sorts of patients. it's not like negotiating with the somali pirates, they fly a helicopter over the area and drop duffel bags of cash down. it's all digital and all cryptocurrency, but the same principle. >> like that scene -- go ahead, yeah, over the bridge, and they'll be on motor bikes. go ahead. >> aman, you mentioned they were targeting nasdaq companies specifically why nasdaq companies what's the back story? >> well, the folks over at cyberreason sent us a screen grab last night from the website on the dark web of this group darkside, and on that website they talk about they have access into nasdaq listed companies, and they can sell that access to other criminal gangs in order to

hurt some of those entities. you can hit them up for ransom and say we're going to release this data and it's going to move your stock price, negatively, obviously, unless you pay us the idea here is that they're claiming, to their own customers, that is other criminal gangs, that they have this capability. we don't know if they have that capability -- >> but that's -- >> that's up on their website right now and they seem to be credible in terms of other threats we've seen. >> it's just so weird because it's not like the nasdaq has the earnings information for their listed companies before, you know, they put them out generally. it's just an odd thing to -- to assume that the nasdaq has potentially damaging information about these companies or would have that information sooner than the general public would. that's not the way they release earnings. >> right, no, to be clear, what they're talking about is they have the ability to hack into nasdaq listed companies. so the companies, not the nasdaq itself so the companies that are trading on the nasdaq --

>> i don't understand why the nasdaq listed companies, it's not like they're running through the nasdaq's computer systems. that's the weird thing i don't get. >> they'd be hitting the company's own computer systems if you're company "x" and you trade on the nasdaq, they're hitting company "x's" earnings data, ip, and technical information. >> they don't like the nasdaq? why target nasdaq companies? >> they mention the nasdaq specifically i don't know maybe they think it's cool because it's tech related and they're techies themselves, i'm not sure but that's the brag that's on their website, that they're putting out to their own customers who, again, are other criminals. so this is criminals selling criminal services to other criminals. >> thanks, pretty complicated stuff. i'm sure we'll get some updates. in the meantime, earnings from marriott, adjusted 10 cents a share for the first quarter compared to estimates of 3 cents a share. revenue was very slightly below

the street's forecast, and as with other hotel chains marriott says demand is picking up as more people get vaccinated and travel activity jumps, that stock right now is down by about 1.9% andrew >> okay, thanks, becky. coming up, the ceo of health care facilities management firm vent is discussing the u.s. economy and the reopening of america. before we do that, let's get a quick check on the markets right now. still up on the dow, about 115 points higher, nasdaq opening down about 36 points the s&p 500 up about 3.5 points. back after this. cision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity.

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welcome back to squawk, real estate investment firm simon property and authentic brands buying eddie bower from golden gate amount. eddie bauer joining other brands, forever 21 andbrooks brothers joe, do you remember when there was an eddie bauer version of the ford explorer, do you remember that? >> yes, i do it was more of an interior, with that cool kind of a plaid, right? >> but it just speaks to the sort of the value of brands, and how those brand values have changed over the years. >> exactly yeah, you don't -- what would i buy now if i were to buy eddie

bauer something or other do you have anything i don't have anything. >> i haven't been to an eddie bauer in quite some time, which may speak to -- not -- >> i hear you. if you haven't been there, then yeah -- that's how i gauge it. let's move on. moving on. our next guest is seeing signs of the covid economic recovery in her business. let's welcome deborah kafaro, ceo chairman of health care real estate investment trust ventas which owns or has investment in 1,200 properties -- largest senior housing owners in the u.s., 739 senior communities thanks for joining us. it's a great sector to monitor given the pandemic and there are some differences, deborah, that we want to point out you're not necessarily a skilled nursing home seniors live in your facilities, which you own, but they're usually operated by someone

else. >> yes, good morning yes, speaking of brands, we do -- ventas owns 1,200 properties, moat of them branded with the names of the care providers who are major not-for-profit hospitals in the case of our medical office but also care providers like sunrise senior living, i'm sure you've seen them here in the u.s. and group maurice, a brand in quebec. >> and during the pandemic we're well aware of people that lived in nursing facilities, but the average age of someone in your facility, this was an at risk population so -- >> yes. >> you had very similar concerns, and needed to take some similar steps did you take those steps or it was in combination, since you're the owner, or was it in combination with your care operators? >> well, at ventas we threw the

whole weight of our firm behind the health and safety of our residents, our physicians, our patients and our medical office. we're really proud of what we've been able to accomplish with the operators to keep seniors safe and now, of course, we've vaccinated, with the operators, nearly 90% or more of our seniors, if you want to know whether the vaccine works, please come to our communities where seniors are starting to enjoy all kinds of lifestyle benefits now that they've been vaccinated and our cases are down to virtually zero so i am so grateful. >> how did you do it you actually set up vaccine clinics in a lot of your facilities >> yes. >> you did that, in combination with sunrise or atrium >> well, there are communities, and the operators, like sunrise and atria got together with walgreens and cvs. we hosted clinics inside of our

communities, most of which have completed three cycles of the clinics and the seniors, of course, were incredibly enthusiastic about getting vaccinated the vaccines have been incredibly efficacious and now, again, our seniors can have visitation with loved ones. and are so much happier and healthier and of course we are thrilled. >> the -- during the pandemic i guess a lot of -- like we've read about it anecdotally how much normal health care was delayed or affected by that. are you getting back to -- how much of normal would you say at this point >> yes, well, that's really important because seniors in particular did defer a lot of their health care. and so we do expect to see some additional demand coming hospitals and medical offices are back up to over 90% of pre-pandemic visitation. and activities and we expect that to continue

as people feel safe. and hopefully our medical office will also be a site now where more americans can get vaccinated so we're very excited. we see over 35 million patients in our medical office every year so that will really be beneficial, both for the senior living communities as well as for other parts of ventas's business. >> at this point, i guess, i mean you do make acquisitions and things, going back to offense. were you playing defense with the company somewhat for the last year? >> well, yes, thank you for asking that. i mean, we have built a big strong diversified health care real estate business we've always been a consolidator, that's one of the value propositions and core competencies that we have. and as i said on our earnings call, we are definitely back on our front foot as far as external investments go. we've been growing a life science business, and i could see us continue to make acquisitions there as well as in the other sectors that we're invested in. >> great

deborah, thank you, ceo and chairman of ventas, there's a cincinnati connection with ventas. >> well, the company was founded louisville, so you're close. and we have some people who work there, maybe that's what it is. >> all right maybe i'm thinking of another company down there in cincinnati yeah, louisville is pretty close. there's a sane-x louisville too. >> exactly. >> okay. they're all good. >> exactly. >> those jesuits. >> thank you so much, it's great to see you. >> you're welcome, thank you good to see you. i got jugged a few times, you know, justice under god. >> justice under god, yup. >> that's called detention. >> i'm sure you deserved it. anyway, before we head to a break a downgrade to tell you about this morning, city downgrading alphabet and fate book to neutral this morning

downturn in ad growth and deceleration of earnings growth after 2021 they didn't change the price target on those stocks though, google is 2,415, above where it is right now at 2335 and facebook they have a price target of $320, $5 above where it is right now. "squawk box" will be right back.

still to come, dr. scott gottlieb gets us up to speed on the latest covid headlines straight ahead. >> and later, sky bridges anthony scaramucci talks friday's disappointing jobs report and wt ulbeeenghacod kpi workers from coming back stay tuned "squawk box" will be right back.

welcome back to "squawk box," i'm dominic chu for your market minute. one of the places we're watching closely is the materials sector, one that many traders have flocked into past several weeks and months now on a general play towards commodity cost inflation. the same thing playing out this morning. the materials speck for spdr up about .5 of 1% and steel up 2 to 3% watch to see if that materials

trade continues. another place to watch, marietta, earnings do beat but revenues fall below expectations marriott shares by about 1% in the pre-market trade, for many of these travel companies, up about 10%. levels we saw towards the pre-pandemic year. watch marriott and other travel and leisure names as well. on the cliprypto side of, 4,038 coin metrics, got up as far as $4,165 50 cents off 13% at one point this token was nearly $0.74 and back to you, becky.

>> dom, i like the highs and lows for those for dogecoin, $0.74 was how long ago? >> roughly two to three days ago and yes, it's $0.50 now. i wanted to throw out the marriott one we talked about avis budget being record highs, those notions with marriott, the travel and leisure names, i thought this idea that many of them are at pre-pandemic levels right now gives you an idea of how far we've come since march of 2020. >> yeah, although i'll say, marriott is at least only at the highs that it's at before the pandemic there are a lot of stocks, like restaurant stocks and others, that are well above the highs they were sitting at -- well above the pre-pandemic levels and those are the ones i think you should have a little more questions about. if you thought it was that valuable, how come it wasn't there before the pandemic hit? what's better now about the company than it was pre-pandemic >> absolutely. i mean, hilton is one of those

companies, it's not as -- it's not as public as marriott has been, you know, hilton is recent over the past few years, the fact that avis budget is at record highs right now, there's tail winds with regard to car pricing, availability, that sort of thing playing out there as well but hilton worldwide, kind of moving towards levels near record highs this notion that you can have such a positivity around travel and leisure, i'm not sure about you, becky, i know that i've spoken to a lot of folks over the last couple weeks who said they've now booked vacations or in the process of booking vacations as well, maybe the optimism is justified. i don't know how much it is when you see some of these stocks at, sometimes, record high levels. >> and that's what the -- some of the casual dining restaurants will tell you, too, is that there's so much pent up demand they'll do better with that and they did develop things during the pandemic they'll keep around like delivery in other places, getting online orders, getting people to pick up and take out we'll see. but yeah, it has been something to watch dom, great to see you.

>> you got it, thanks. when we come back, the biden administration says that the united states is entering is new phase of the outbreak, and more relaxed rules may be coming. we're going to speak to dr. scott gottlieb about that right after this break and then, jobs, the economy dogecoin and more, sky bridge capital's anthony scaramucci will join us to talk about it all. "squawk box" will be right back. we're carvana, the company who invented car vending machines and buying a car 100% online. now we've created a brand-new way for you to sell your car.

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welcome back, everybody, one stock we're keeping an eye on this morning is biontech it's up by 8% this morning after the german biotech company came out with blowout quarterly numbers a few minutes ago. that continues to be the trend we've seen with companies associated with the vaccine, beating expectations, just like this one, again up almost $15 for biontech this morning, close to $200 a share. according to the cdc, more than 43% of all adults are now fully vaccinated in the united states. this is prompting some conversations around easing masking policies for indoor gatherings as we head into the summer months. joining us to talk about that

and more is dr. scott gottlieb, the former fda commissioner, serving on the boards of pfizer, and his latest op-ed he talks about this morning gives reference to president biden's support of breaking vaccine patents and what the united states could do instead. scott, let's start with this op-ed you have out today, it's you and another colleague who have been looking through these issues and you're pretty concerned about what you think is bad policy. what happens if we break patents, do you think we get to these vaccines sooner >> i co-wrote the piece with a chief scientific officer at fda and worked on the national security council in the last administration the concern here is that it's really not going to solve the problem. it was a political gesture a lot of people have declared victory and moved on but this doesn't solve the challenge of getting more vaccines into low and middle income countries. we're sitting on a will the of supply in the united states, at least 100 million doses not being used and probably aren't going to be used and by the end

of july one estimate is we'll about 300 million doses in the united states. if we want to solve the immediate challenge we should get more doses to those countries. if we want to solve the long-term challenge we should be ramping up supply in the manufacturing sites currently operating. we can work on tech transfers with local producers in these countries, south africa, india, brazil to do the fill finishing steps and i think we should do that to build global capacities. by next year we're going to have a lot of vaccine, just the three manufacturers currently producing are probably making 12 billion doses. we're going to have a lot of vaccine to supply the world. it's a supply issue over the next six months. we need to share more doses. if we do a full on tech transfer, the biden plan doesn't contemplate that, it contemplates other countries reverse engineering our manufacturing processes. if we did a full collaboration it would take at least six months to 12 months.

j&j is now working with america so that merck can make the j&j vaccine, they're anticipating that's going to take six months. two established manufacturers up and running doing full on tech transfer, where they're cooperating and that's going to take six months. >> we've talked about this again and again and you've been pretty clear this is what you think is the best way of doing things, that whole time. if we've got extra doses and we're not sharing them, is that just another political expediency point, we don't want to look like we're giving away vaccines if there's anybody in the united states who still wants one? >> the administration wants to build up a stockpile heading into the fall in case we need to give part of the population boosters but my premise is we should trust our own supply chain right now the manufacturers, moderna, pfizer, j&j are ramping up supply, pretty stable supply and haven't had major problems moderna and pfizer have not had major problems in their manufacturing, we should trust the supply chain and not be stockpiling so much when there's a crisis around the world.

we can't be on the one hand giving away the intellectual property and not really protecting american companies overseas, on the other hand holding onto the finished goods, which the countries need right now. it seems somewhat cynical to me. at the very least they should be doing both i don't understand why they're holding onto vaccine supplies and giving away the intellectual property we should be erring on the side of giving away the vaccines before we give away the ip. >> i'm sure you saw the gates foundation reversed course on the issue of ip and saying they would support a narrow waiver on the api issue. others say you haven't have a narrow waiver because once the special sauce and ingredients are delivered and exposed to others outside the company you've lost control of it. who's right? >> i don't know what a nar owe waiver is, i'm not saying countries can't figure out how to reverse engineer these processes. china probably will figure that

out. if you look at pfizer, they manufacture this vaccine over about a half a dozen different sites because of the specialized equipment they need. the step there is getting the mixing machines they custom make which cost about $200 million each these are hard processes to reverse engineer in any timely way. part of the process could be offshored and do the fill finishing of these vaccines and other manufacturing sites in other countries if you're working closely with them. i think we do have to build local capacities in countries like south africa, india that have vaccine manufacturers right now and could be scaled to do more of this work so we could share in the tasks but the idea that anyone is going to be able to reverse engineer the processes quickly, to solve the immediate crisis, it's not going to happen and in the long term we're going to have ample supply this is a political gesture. people have long wanted to dismantle trips, the chinese and russians especially, but a lot of groups have, third party groups don't believe in

intellectual property protections. this was hailed as a victory and my fear is a lot of the liberal groups that were supporting this have moved on. you haven't heard a lot of talk about lack of global supply of vaccine this weekend because a lot of people declared victory and moved on but we have not solved the problem. >> we haven't fixed the problem, right. scott, let's talk about guidelines from the cdc, from the states about what you can and should be doing if you're vaccinated, not vaccinated i've got to etell you, the line are moving quickly and i don't know what the official guidance is anymore where do we stand? people are doing what they feel comfortable with on their own? >> that's what's going to happen people will judge risk and take precautions based on circumstance, whether they're vaccinated, feeling vulnerable that these to be a key consideration. we're fast approaching the metric when a lot of public -- it's around ten cases we are hundred thousand people on a daily basis. a lot of states are well below that, half the states are at ten

cases a day right now, national average about 13, maybe five to ten states around five to seven cases a day per 100,000 people we should be lifting the mask ordinances outside in wholesale fashion and indoor settings as well we've hit our own goal we've succeeded and met our own goal, we're just reluctant to relax the measures now. >> the problem with that is businesses look to the cdc, almost for a cya they're not going to relax the standards until they have an official telling them they can relax the standards because they think it opens them up to lawsuits if they relax before the government says it's okay to do so. >> cdc is put in an uncomfortable position of opining on every facet summer camp guidance, stay within six feet of someone who's not in your bunk, sleep head to toe, can't engage in activities

that requires shouting basically outlaws kick ball. the businesses need to come together, maybe work with some independent public health authorities, health commissioners in cities, and put out their own guidelines i wrote about this in the "wall street journal." if they wait for cdc, they won't like what they'll get. cdc has not opined on office based work they've been reluctant they've left the ground for businesses to step in and do that on their own. people who don't want to be encumbered by restrictive guidance at this point should be looking to develop their own guidelines through public/private partnerships with authoritative groups now is the time to do it. >> most businesses don't want to require vaccinations, why would they take a step out like that and go ahead and say they take on even more liability >> yeah, if you're working with an authoritative group tonight sure you're going to have liability. in health commissioners in big cities, go that route. the vaccinations are a different

issue, a question of imposing something on people that they feel is an invasion of their personal choice. >> scott, thank you. always appreciate your time and we'll talk to you soon. >> thanks a lot. coming up, sky bridge capital's anthony scaramucci on whether government benefits are crowding out job growth. plus, this take on the recent moves in dogecoin and other cryptos. in the next hour, charlie evans. "squawk box" will be right back. in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it—

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a high stakes economic debate is brewing over the labor market following that disappointing jobs report that we saw on friday. >> joe, good morning, from the start of the enhanced unemployment benefits critics did more in that it would discourage people from going back to work and as vaccination rates have increased and states reopened some business leaders and small business owners began reporting trouble finding workers. now south carolina and montana are on the parting out of the additional weekly benefit with montana even offering a $1,200 bonus to return to work. despite having one of the lowest unemployment rates in the country. treasury secretary janet yellen saying friday the ui benefit does not appear to be a major factor in people returning to work, and the data largely backs that up. so when you look at states with the most generous unemployment

benefits in a few cases there is still high unemployment, like in connecticut and new jersey but in other high benefits states, for example utah and minnesota, unemployment is very low. so no consistent correlation there. when i asked one labor expert how to reconcile the data with what we're hearing from some business leaders, she said the idea is sticky because there's a small kernel of truth to the argument, that workers may, in fact, be less desperate to take the first job offered to them, and instead may be looking for a job that's a good match, and that's actually better for everyone. >> when they find those jobs that are good matches it's good for their economic security because they often get paid more and it's also good for economic efficiency because employers can really take advantage of their skills. >> now, other reasons people may not be returning to work include, of course, health concerns, amidst the pandemic, and child care issues, likely part of the reason we saw women's labor force

participation drop in april. andrew >> rahel, thank you for that report we're going to continue this conversation right now because unemployment benefits just one piece of the puzzle that could be keeping folks from returning to the workforce joining us to help make some sense of all this is anthony scaramucci, founder of sky bridge capital is it that everyone is hanging at home, you know, trading dogecoin, anthony, what's happening here >> you know, they're collecting unemployment benefits and they're going to louis vuitton with their stimulus checks if you look deeply into the analysis you have to factor in the seasonal adjustments i don't want to bore people, but there are lies and then there are damn lies and then there are statistics, andrew and so ultimately the seasonal adju adju adjustment numerology, there's more jobs out there than the

266,000. they haven't been fully accounted for. if you go to the harvard president -- the harvard professor that created this seasonal adjustment he put out a memo last week saying that making that revised, meant you'd have over a million jobs, more than the 988,000 predicted so i think we've got to work on the bureau of labor statistics in terms of the way they're analyzing the labor market now those seasonal adjustment factors were put in place in the mid-70s during the ford administration so there's a lot of jobs out there, andrew, even people working remotely from home that haven't been picked up in the data, basically. so i don't buy the argument that people are just staying home to take advantage of the unemployment benefits. >> so you think next month the whole thing's going to change, and all the sudden we're going to see the light on this, in terms of what the numbers show >> it may not necessarily be next month, but i think they

have to make these adjustments now for the new economy. you know, you've got way less manufacturing in the country than you did back in the 70s, and there's a lot of jobs out there. you tell me. if you are working in a tiktok form producing content for tiktok, and it's not appropriately accounted for in the bureau of labor statistics, is it a job or isn't it? the answer is that it is i think we have to make these adjustments now and revise them pursuant to what is actually going on in the economy today, not what happened in the past so it's not that it's going to get fixed in a month but i bet you over the next six to 12 months it will be, yes, it will be revised upward. >> you're effectively not buying the argument we had senator pat toomey on earlier making the argument that effectively these unemployment benefits are keeping people from going to work. you think that's not true? >> i am not buying that argument because, remember, i grew up in a blue collar neighborhood these people want work

they don't want to sit around with unemployment benefits and just milk the system that is a tired going back into the '80s welfare queen sort of argument that i think is frankly intellectually dishonest and it also shows the people making that argument are just out of touch with the people that are looking for work people want work, there's a lot of pride in getting a job. and i think that that stuff is nonsense and i want to push back hard on that. >> anthony, i'm not going to dispute that i will tell you that steve rattner, considered a democrat, put out a chart earlier today, that looks at the state of pennsylvania where senator pat toomey is from, and there are jobs clearly dishwasher jobs, even preschool teacher jobs that make more money effectively on unemployment than they do actually working. >> okay. so, again, we're going to quibble on this.

are there -- is there a small batch of people that are making decisions like that? maybe. but by and large, people want work, andrew i think that the nonsense that people would rather stay home and not work, versus work, i think is a bunch of nonsense and i -- listen, why don't we do this we'll get a camera and go into some of these areas and we'll ask people, like they do, and you'll find that, you know, i've got cousins of mine that are -- there's no clams left in oyster bay, they're out looking for work they don't want the unemployment benefits. >> anthony, let's pivot the conversation to crypto, if you'd indulge me we've spent a lot of time with you talking about bitcoin. we had the elon musk appearance over the weekend that sent dogecoin down, not up, but we're looking at ether now at its highest level ever and we talked to gary genzler who spoke for

the first time on cnbc on friday, it suggests there is regulation coming but he thinks that congress ultimately may have to regulate this, not his own agency. >> i saw the interview what i would recommend to people is to download gary's course from m.i.t., because when he's teaching, and he's talking as a professor it's very different than the hat he's wearing as a regulator. we all share this mutual vision that there will be digital currencies or stores of value relevant in our society over the next decade plus is dogecoin going to be one of those? there's a group of people pumping dogecoin it doesn't -- when you look at the underlying mechanics of dogecoin, we don't think it will reach escape velocity. even though it's going to the moon, we don't think it will reach escape velocity.

ether and bitcoin are more practical and widespread application. as it relates to bitcoin, you know, i believe it's the apex predator to space but i think there's a great irony, we're trying to convince institutional investors to own bitcoin they want to play things like dogecoin and these other stable coins, if you will -- >> that's what i want to ask you about. >> that's the great irony. that's the great irony going on right now. >> if part of this is not just a belief in the currency, but also people effect lively trying to find the next growth trade, if you will, saying to themselves bitcoin may go up and maybe it goes to a million ultimately but if dogecoin can do that much better because it's off of a lower base or if lite coin or ripple is going to get you there, we can go through them, what happens over time if you can't even -- if the thing that's supposed to be the protocol that people believe in,

people will take their money out of to invest in other things. >> well, again, we're talking about clirypto traders and peope that love the high volatility action, if you're trying to institutionalize this, i don't think those coins will be that relevant to institutions i would just go back to the 2016-2017 bull run in these coins. one-third of the cycle was bitcoin, and then the second third, it switched over to these other coins that you guys are referencing. >> right. >> but by the end of the cycle it was back to bitcoin >> anthony, always great to see you. look forward to seeing you again soon. >> thank you. >> you bet, have a great week. becky. when we come back, chicago fed president charlie evans joins us in an exclusive interview to talk inflation, recovery and much more stay tuned, you're watinchg "squawk box. and this is cnbc a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional.

♪♪

we are tracking the market fallout from a cyberattack on a pipeline, and gas prices are jumped. why did the job report miss so badly is the economy coming back as

strongly as we thought answers to those questions with chicago fed president charles evans. saturday night musk, the tesla chief trying his hand at comedy live from 30 rock and in the process takes down the prices of dogecoin, full wrap-up is on the way as the final hour of "squawk box" begins right now. ♪ good morning, and welcome back to "squawk box" on cnbc, i'm joe kernen with becky bquic and andrew ross sorkin the nasdaq continue to be in the red, down 69 points, s&p up a little bit, less than 2. treasury yields, which on friday was interesting to watch because for a second they really dropped

on that employment report. but now we're back in that range where we've been right around 1.6%, just under it, 1.58. let's show you gasoline futures along with heating oil, both are higher, as much of the colonial pipeline remains offline the critical energy artery was shut down friday in response to a ransom ware cyberattack, citing sources nbc news says a russian criminal group known as darkside may be responsible, though it's unclear what if anything was demanded by those behind the attack. colonial says it's in contact with law enforcement, and the federal government, including, you would think, the department of energy, and they are, more than 5,000 miles, the pipeline is, carries nearly half of the east coast fuel supply, everything from gas to diesel to jet fuel, and heating oil. though the main pipeline remains shut down, the company says some

smaller offshoots are now operational again. important earnings report, though, shifting gears, this morning, we monitor the nationwide reopening trend, marriott beating analysts' first quarter profits. revenue came in light. but marriott seeing a rebound in demand as more people get the coronavirus vaccine. but remember how many properties marriott has around the world. i think probably more of the business is outside the u.s. where there's obviously it's different, depending on what country you're in. and mall operator simon property and authentic brands are buying retailer eddie bauer from golden gate capital for an undisclosed amount and together well-known brands including forever 21, brooks brothers and aeropostale. >> let's talk markets to start the hour the market's response to

friday's disappointing jobs report, joining us is mohammed -- he's adviser to -- president of queens college cambridge. and mohammed, the markets really seem to shrug off this disappointing news, jobs were much, much lower than had been anticipated for april. are you able to shrug it off in the same way >> so i think the bond market was -- it realized very quickly this is not a demand issue, it's either a supply issue or data issue. so it shrugged it off quickly. the equity market simply looked at the fed's perspective, and the notion that this massive miss will reenforce the fed's conviction that it should stay as loose as possible for a long time so i think the market reaction, after a few minutes, turned out to be very rational. >> what do you think it is i mean, as an economist, and as somebody who looks through all of these issues, is this a temporary issue? was this a data problem?

is this something that you think will be corrected quickly, or do you think that this is going to be a long, hot summer for the fed and people won't really come back in force until the fall when kids are back in school, especially because the jobs that were created came from men, not from women. >> correct, in fact, female labor participation unfortunately fell look, could it be a data issue it could be. we'll know more. but if you simply look at the demand and supply it's very hard to argue that it's a demand problem. every indicator we look at, whether it's macro, the company level, suggests that people want to hire workers. so it's likely to be a supply issue. there are short term supply issues, one of them is the unemployment insurance benefit discouraging people from going back to work child care is a big issue, so are schools closed that's a big issue these three will resolve themselves over the next three to four months by september the bigger question is, is there

a fundamental skill mismatch going on has the economy evolved in a way the labor market has not evolved. we need to look at these issues. it reenforces what the biden administration is trying to do on infrastructure, on human infrastructure, but it does raise a question about what the fed is doing, if it is, indeed, a supply issue. >> when you say that the labor market may have evolved, or more quickly than the labor force has, you mean we've gotten more technical? you mean we've gotten more automated? you mean we need different skill sets to fill these jobs? >> correct and that's the biggest fear we have because what we don't want is a jobless recovery the fed is absolutely right in pointing to 8 million people who lost jobs when covid hit and are still not back in employment they're white. but there's a massive question mark as to how many will actually be able to get jobs

again, or will be willing to get jobs again and we won't know this for a few months, this is really consequential, not just for the marketplace and for policies, but also for societal well-being. >> mohamed i read analysis over the weekend that said, look, maybe the labor market has changed in terms of where the jobs are and who's paying what in the leisure and hospitality industries you're making something like $18 an hour on average, but if you're working in the warehouses, you'd be making $26 an hour there a lot of those places have raised their pay, raised their benefits and looked at other issues maybe it's going to be pretty tough. and maybe that leads to higher wages. what do you think? >> yeah, and i go back to your conversation with warren buffett a week ago where he said that they're seeing inflationary pressures and where companies feel that they have to pass on

the higher costs, labor, but also what's happening in terms of raw material, look at what's happening to iron ore and copper today. there is a big push coming from the cost side. and if warren is correct in saying that higher prices are sticking, then you will get this notion of higher consumer price inflation and higher wage inflation. now, that may not be a bad thing. especially on the wage side. and i think it's indicative, also, that pricing power is going back to labor in a way we haven't seen for decades. >> in terms of prices, i mean, we're looking at copper, that's a huge chart but if you looked at lumber, lumber prices were up almost 50% in the last month. does that sound transitory to you? do you think there's a point where that breaks, more lumber mills open, and then you can fix some of those huge gaps we've seen >> it depends on the

commodities. some of it will absolutely trigger greater supply, proof transitory others will be embedded into the system on the whole, the inflation that we actually get may surprise a lot of people, including the fed. >> so mohamed, you look at all of these things, and what do you tell investors in the stock market right now does it look like a decent time to be buying, given the numbers we just saw? >> you've heard me say over and over again you cannot go against liquidity when you have such ample and predictable injection of liquidity you will get the everything rally. as long as there isn't some internal accident that everything rally will continue you've heard me say this, and we just have so much liquidity coming in, and that's sloshing around, and pushing everything up i think there is this notion,

and it was captured really well, even if you're worried about the world, do you want to be, quote, a fully invested bear? so, yes, you've got an eye on the most strategic and secular issue, but from a purely tactical point of view, you've got to respect the liquidity that the fed is putting in. >> in other words, it feels really uncomfortable, but go ahead and buy. >> for now, but remain with a huge tactical mind-set that's the one risk is that if this turns, because so many people are tactical, that underlying tactical, but it's worked so well riding this enormous liquidity wave. if it turns, you know, there will be buying opportunities but at much lower levels. >> in other words, look out below. mohamed, thank you, it's great to see you. >> thank you, becky. andrew >> okay, thanks, becky when we return, an exclusive

interview with charles evans. but next, the doge father taking the stage, bringing you highlights of elon musk on "saturday night live" what it meant for his personal brand and crypto and media worlds. stay tuned you're watching squawk on cnbc

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a wild weekend for dogecoin thanks to elon musk's hosting gig on "saturday night live," and kate rooney joins us with more on that good morning. >> crypto investors had piled into dogecoin ahead of snl thinking musk talking about it would boost the price. it crashed saturday night looking like a buy the rumor, sell the news. musk introduced as financial expert lloyd osar tag to explain what dogecoin actually is. >> what is it, man >> i keep telling you, it's a cryptocurrency you can trade for conventional money. >> oh. so it's a hustle >> yeah, it's a hustle. >> why didn't you just say that, man. it's a hustle. >> to the moon.

>> during that skit cryptocurrency's price crashed, tanked by about 30% on saturday night. the cryptocurrency started as a joke in 2013 is already up more than 10,000% this year, had more than doubled heading into the weekend. but despite jokes about it being a hustle musk's other company spacex taking it seriously the morning after snl, spacex announcing it would launch a mission funded by the cryptocurrency called doge 1 in some ways musk is taking it to the moon. all of this frenzy, guys, on saturday also causing issues over at robinhood, the start-up brokerage firm announced a crypto trading outage in the middle of saturday night live due to high trading volume and volatility robinhood says the outage has been resolved. >> i saw that happening almost in realtime. and the question, we've now seen a number of outages at robinhood

over lots of issues, including gamestop, quite famously what does this mean for robinhood. they were leaning into this idea of dogecoin as an investment i saw ads that they were pushing. >> they were -- they had ads, they were tweeting about it, saying all paws up ahead defendant week and weebl advertising and others offering dogecoin. it's seen as a good customer acquisition channel but that's a major issue. outages have been, we've seen it with stock trade and they have class action lawsuits out against that particular issue. it's been one of their biggest head winds, the idea of keeping up with customer demand, wouldn't be surprised if you see the same pushback if you saw a ton of customer issues and complaints on twitter. so yes, they're advertising and bringing in new customers. the big issue for them is actually keeping up with that growth but it has seen and proven to be a pretty profitable business for some other companies you've seen

coin based in square in the past week, crypto trading is a good business. >> and keeps growing, keeps growing. robinhood had outages and yet it's not slowed down the user base kate, great to see you thank you. joining us more to talk about elon musk's appearance on "saturday night live" including what it meant for kriep crypto d media world. dan, you've covered technology, any long-term impact you see on either tesla, technology, spacex, from his appearance, on crypto, any long lasting, other than another data point that crypto is becoming more, very mainstream >> yeah, i think especially on the tesla side just further cements musk's reputation, and his legacy he had three court ev competitors that advertised during the first 30 minutes of the broadcast.

so i think it just speaks to the green tidal wave what musk and tesla have done in terms of the ev landscape, and remember this is a company that doesn't advertise, it's about the cachet of musk and it took another step higher in terms of what we saw from a popular demand perspective. >> on crypto, dan, do you think that they -- i mean, it is a -- they do skits and comedy, to call it a hustle, doesn't necessarily mean he's saying i'm in on the joke and it's one big hustle, it was tongue in cheek do you think that hurt dogecoin's future? >> i think it hurt it a bit. if you looked, there was a lot of hype going in, buying the rumors, selling the news but in terms of crypto, anthony talked about it before, this continues to be, there's obviously a lot of speculation but i think that's not what investors or core believers in dogecoin are looking for in terms of the word hustle being

used. >> sara, there are so many cultural implications for it one of the most interesting one was, you know, whether people would choose to be on the same stage with a billionaire, someone who's made 140, $150 billion. that, to me, seemed kind of bizarre. what are the long -- any long lasting implications you think? >> yeah, i mean, it does wonders for elon musk's likability remember, he's trying to build all of these businesses and he these the public's buy-in. he's trying to build in texas the spacex, not just the community, but the town, he needs people willing to sell their houses to the business, he needs local officials to be willing to work with him becoming a national phenomenon where he's gaining popularity and poking fun at himself it does a lot for his business, it makes him someone people want to work with and get to know. this is great for snl and nbc.

this pulled in tons of ratings for the network and it broadened the sense of cultural -- stocks were moved when's the last time that happened on snl? >> what more do you need to say ant lauren michaels and his ability to spot talent and what works, culturally know exactly, you know, how to go with that. so at this point, dan, being a technology guy how does dogecoin end? or what is the future? i'm not going to say it ends what is the future, in your view for dogecoin, and do you think that when you say that then do you say that means this for ether and bitcoin and all the other, you know, tokens in crypto world >> yeah, i mean, look, right now we're bullish on crypto and bitcoin in terms of where i

think ultimately this is going, in terms of transactions as well as from an investment perspective from companies when it comes to dogecoin, that's tied to musk, spacex, he has a lot of levers he can pull in terms of legitimizing that crypto in a risk off asset for tech, it moves higher, speaks to this is not a fad, but a trend that needs for more regulatory goal posts, has been talked about a lot. >> sara, as a reporter, i saw your notes, in new jersey now, people on the spectrum, born on the spectrum, i think it's about one out of 70 or 80 young boys, one out of 40. you just do the math on how many kids are on the spectrum, and what they deal with. on a daily basis and then you see this guy who makes rocket ships and electric cars, and he's worth $100

billion, and he's funny, and he's, you know, married. that was my point. i don't care what else happens from that. that is so unbelievably empowering, and fantastic. that he did that, that he can never do anything wrong for me again, ever. >> yeah. >> it wouldn't matter. >> i'm from new jersey, i know that stat really well. it was such a huge milestone there was criticism he wasn't the first person with -- it was one of the first things you heard out of his mouth and talk about that was a huge deal and he brought his mom on, obviously it was mother's day on sunday. and it was just this heartwarming event and i hope that it gave everyone out there, who has any sort of disability, a child on the spectrum, some sort of hope, and positive momentum heading into the week, that you can be anything and do anything in this country, and for me i thought it really made elon musk very

relatable, gave me a lot of faith in him to be empathetic as a business leader. it was a huge, huge win in my opinion, not just for elon musk, but also for nbc and snl, coming out and explaining that diagnosis. >> you remember bob wright, former ceo, founded autism speaks, it was good, good for everybody, good for the network, it's a good legacy and as i say, that's what i'll remember about elon's appearance dan, thank you, sara, thank you as well. we'll see what happens long term, i don't know, to crypto or techs, but long term, i think it's going to be good. beck. >> i agree 100% really it was a 180 on what i was thinking about elon because i approve so much of what he did, admire him for it. we're speaking exclusively with charlie evans on the markets, inflation and friday's lackluster jobs report.

first as we head to a break, check out shares of covid vaccine maker biontech, beating analyst estimates on the top and bottom line for the first quarter. that stock has popped. it's up by about 7.5%. stay tuned, you're watching "squawk box. and this is cnbc

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♪ coming up will friday's disappointing jobs report change the fed's calculus when it comes to monetary policy we're going to hear from chicago fed president charles evans on that topic, and much more. plus, it's important to note tomorrow, we're bringing together top health care ceos, technologists and investors to explore how the most innovative companies are addressing the coronavirus crisis and the lasting effects on the industry. join leaders from pfizer, eli lilly, the cdc and more. enu can register now at cnbc evts.com/healthy returns stay tuned he wheel. with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm. with watson on a hybrid cloud

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economists and investors making sense of fried's job report, the gain of 266,000 was under a quarter of what was expected steve liesman has a very special guest for us this morning.

steve? >> good morning, andrew, yes, thank you, i am joined by chicago fed president charles evans, coming to us, i believe, live from chicago. good morning, mr. evans. >> good morning, steve, how are you today? >> i am good i am wondering if you can help us put some context and understand what happened on friday, and how you begin to process a jobs number that came in at 266,000, while wall street and some of the best models in the country were looking for a million jobs. >> oh, friday's number was definitely surprising and i think market expectations were about a million. you know, chair powell had said at a recent press conference we've -- you know, we're looking for substantial further improvement in our employment mandate but one month we'd had so far wasn't enough, looking to get a few more, that will be good, people were expecting a million, and then a million, and then we ended up getting 266 it's a little more complicated

we're restarting the economy a lot of sectors are, you know, experiencing growing pains supply chains have really been, you know, they're a little bit threadbare in various cases and trying to get workers back to, you know, employment, new firms, not just the old firms i think one of the opportunities when we were thinking about shutting down the economy last year and starting it back up within a few weeks, or a few months is they could go back to the same establishments. that easy. going back to different establishments, that's not easy. that's hard. so i think job matching is part of it, child care, a lot of factors. hopefully it's just, you know, one month kind of thing and we're going to get to better employment i certainly think so because we've got a lot of support, fiscal stimulus, monetary policies and i'm looking for a continued strong employment growth the rest of the year. >> i want to come back to that forecast there, charles. but one factor that's been mentioned quite a bit is the

idea that benefits for unemployment are very high right now and in some cases they pay people more to stay home do you think that's a factor >> well, i mean there certainly are, you know, good unemployment insurance benefits for people who are eligible for that, not everybody is, some people left the labor force and they're not eligible when they come back you know, they are pretty good i think that gives people time to look a little more carefully. the job matching situation is really important, going back to, you know, any old job, you know, some worker might kind of go that might get me for two months and then i don't know if i'll still have that job or something. they have more time, they can put food on the table and worry about, you know, protecting against covid risks, there are a lot of vaccinations, which are on the upswing but, you know, we have a lot -- a lot more to go there and not everybody wants to wear a mask so there are risks and i think that the ui benefits help people make careful decisions

but really, i think the supply chains are much more important i think the -- we lost 64,000 women in the employment numbers in april, that sounds to me like child care is still an issue, schools are not open you know, five days a week, regular hours. so even if they're open, but they're irregular hours, that means there are child care issues so getting women back sot work force, the way thatthey would like to work and worked in the past is important. >> charles, if companies are having trouble finding workers, they have to bid up wages, to what extent does this exacerbate an inflation problem the fed may have to deal with down the road, wage push inflation? >> that's an important question and i think we're going to have to study it, and watch how the numbers roll out, there are a lot of factors at work let's look back and notice that labor share of income has gone down over a very long period of

time, they went down during the last recession, after the great financial crisis every time we get back to a business cycle peak, labor share is less. and so it would not be unusual over a longer swing for labor share to increase. so that would represent higher wages. that's a bargaining situation. that depends on the occupations, the jobs that workers are looking for and they're looking longer term for what the kind of jobs that might be serious, endeavors for them over the next five years, not the next three months i think businesses have to be very careful, think about job matching, think about the value proposition and it's not going to be easy so i think it's going to be hard now that's -- those are, you know, wage increases, is that inflation? that's the labor market adjusting and we'll have to pay attention to its inflationary implications and accommodative monetary policy helps with job matching but some of that is relative prices it's not going to lead to sustainable inflation over a few years.

>> so talking just about that headline in the "wall street journal" today about prices for everyday goods, really soaring, we see the inflation numbers out there. i really have two questions, how temporary do you think this inflation run is going to be and how much tolerance do you have, if we start printing numbers of 3% and 4% annual increases, does that cause you concern? perhaps it's time to reverse policy. >> i think we're going to have to be looking at that. we certainly expect that this increase in relative prices, goods that had fallen, you know, in their pricing during the, you know, covid shutdown, now they're going up, they're going up by more as there isn't enough supply for, you know, a lot of goods if you're looking for household appliances, they're hard to come by, there's a long list of things where prices and long cueing for getting them delivered has increased. once they get production back up, and, you know, i would expect prices to be about where

they ought to be, and so, mine, i think there can be a relative price increase and then i think beyond that, that's what real inflation is, beyond relative price adjustment, year after year, are they going to continue to go up very strongly? the evidence seems to be that inflation expectations are going to be very important for that. so i think we're going to have to be looking at the financial market implications for inflation expectations, survey measures, and thinking about whether or not we're delivering on our 2% on average inflation objective, over time. i think we've got a ways to go we'll have to be, you know, pa paying attention to whether or not inflation gets above 2.5% to 3% to average 2% you have to be above 2% inflation rates of 2.5% don't bother me. as long as it's consistent with averaging two over some period of time. >> charles, i wonder if you could help investors here and our viewers understand your outlook for policy there's a general sense out

there, i guess we call it conventional wisdom, that sometime this summer you'll begin to talk about tapering, and perhaps begin to reduce the monthly purchases of $120 billion a month sometime next year but that you also have this very, i guess, dovish view you won't be raising rates for some time to come is that your outlook, and whether or not the concerns about inflation and wage push inflation change that outlook of yours? >> well, i think that, you know, everybody in the fed has been very clear that with our updated long run strategy from monetary policy, we're looking for outcome-based monetary policy, looking for outcomes and so when we've said that we're going to continue to buy assets, until we see substantial further improvement towards our mandates, and the chair says one employment number is not enough and then if we get a weak number we're going to have to see more strong employment numbers and we're going to have to see inflation, it will be delicate,

transitory inflation will look like it's above 2% relative prices or something more sustainable it's going to take so some time for us to see it in the data, assess it. it can't give you a time frame you know, a lot of people were kind of saying we're going to get a million jobs that's going to, you know, really indicate what we have to do that didn't happen i don't know if it's going to be the other way. next month, we're going to see how the data come out this year and when they're stronger, when we're close to our employment mandate, and inflation's picking up, we'll be talking about that. >> okay, charles, will you come back and talk to us when that happens, if not sooner thanks for joining us this morning. becky, back to you steve, thank you very much gives us a lot to think through as we get closer to the opening bell been watching this morning in the dough, indicated up by 128 # points, 24th record of the year on friday with its close, we'd

be opening at another high. jim cramer's big take on the big week ahead for the markets. in depth look at the businesses that are hit by the emerging u.s. labor crunch, and how they are feeling the pinch right now, as we head to a break, take another look at gasoline futures they're higher, thanks to that weekend shutdown of the colonial pipeline, which carries nearly half of the east coast school supply a cyberransomware attack, the cause of the shutdown. rbob gasoline up by 1.4% you're watching "squawk box," and this is cnbc but in businr just another day. every day is the day. there's the day your store has its biggest sale. the day you have a make or break presentation. and the day your team operates from across the country. but there's also the day you never see coming-

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every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. the restaurant industry, we don't have to tell you, was one of the hardest hit during the pandemic now many businesses are searching for more workers in what they find is an increasingly challenging environment to try and do that kate rogers joins us with a look at the labor crunch. hi, kate. >> hi, joe, good morning every company that i speak to, both large and small, is looking for workers right now and the competition is really on in fact, chipotle announcing this morning it is increasing restaurant pay to $15 an hour average wage by the end of june, starting hourly crew rate wages ranging from $11 to $18 an hour. those who advance to general

manager can make $100,000 a year referral bonuses are being offered. the talent crunch is impacting the ability for some owners to serve guests the way they'd want to now as the country reopens. >> we're approximately understaffed by about 800 employees. we're constantly trying to staff. it's the number one issue on all our calls with all our general managers, director of operations, coo, myself, you know, how do we get people to come back? >> and that's trickling down to the supply chain at places like papa john's and wing stop. >> it's caused challenges to staff plants and slaughter enough chickens to meet the demands of the marketplace. >> now, the issues being felt at businesses nationwide, the national federation of independent businesses that 44% of small businesses have jobs that they can't fill, that is a record high now for the third straight month in a row. economists say there's a lot more to this than enhanced

benefits and unemployment, uncertainty for potential employees around things like child care issues, health concerns, and much more, another hurdle for an industry that's already struggling to rebound from its most difficult year in decades. joe, back to you. >> kate, if this was an assignment and they said why is this not happening, those are the -- i think you could find -- i get ten things, like child care, with kids not back in school how are you going to go work in a restaurant all those other points that it's a combination, and i'm sure benefits have something to do with it but it's a combination of all those things. cramer when he comes op, signs everywhere, help wanted in restaurants. it's weird, isn't it >> i mean, these companies are really actively recruiting and i think what we're seeing more of, and i got to talk to chipotle's ceo about today's announcement is that a lot of companies are trying to say this isn't a job just for today, we're trying to keep you here and help you grow your career and that's a message i know that company is looking to get out, they're getting

creative, really, with kre cross-suiting, doing hiring fairs, hiring parties, chipotle is having an event on the social community platform this week, you're hearing more about what the job has to offer, but also this future in the tight environment. >> i don't know if you made those elements but you're going down the list of hits, you did chipotle, taco bell, ihop and mcdonald's i'm ready to step out right now, how do i pick? so many great places. >> where to go, so many options. >> i think they all have breakfast. maybe not chipotle. >> not chipotle. >> but we digress, thank you, kate becky. >> that's what i was going to say, joe, it's breakfast time. let's get to cnbc headquarters, jim cramer joins us and jim, it's hard to come to you after that segment without asking you as a small business owner yourself the types of

issues you've seen trying to staff your restaurants. >> so we're offering $18 an hour we had seven people come, supposed to come friday, only one showed up. they make appointments we can't give these jobs away. we estimate the unemployment benefits are substantially more valuable than our $18 an hour. we have people doing shifts, we're employing a lot of people because we have people doing tuesday or thursday. but we can't compete against those benefits i think the people should just own that that's what the story is we had ample people to work before this. so yeah, 150,000 restaurants that went under. you would expect there are even more we have a lot of closed restaurants on our blocks. it doesn't matter. we can't get anybody at $18. >> i was thinking about what you pay people back in the kitchen and the staff who are doing that, but then even what you pay people up front, bartenders, waitresses, wait staff who had been there before. they relied so much on tips, if

you don't have 100% capacity and people aren't coming in, they're not going to make the same money. >> i was looking at our runs, exactly right. one of ours is good, the other run is not good. we had to raise the price for the people in the back substantially to keep them one of our places have been open for ten years and these people have been with us for ten years. we have to raise the price but i've got to tell you that we're just -- until these benefits roll off, it's going to be catch as catch can. it's really a shame. because these are good jobs, and we've always paid people well, well above what is in the market we could go to $20 no one's going to show it doesn't matter. we stooid to keep it at 18 it's well ahead of what everybody's paying, we can't get workers. >> anthony scaramucci was on earlier, and i was like, that notion that people want to work, and i'd like to believe that, and, you know, arthur brooks writes about that all the time, the dignity of work is better than just drawing a paycheck

and that was anthony's point and i was saying, well, i hope that's true, but this does -- this does not sound like that's true. >> not at all. it's not at all. i mean, maybe when the benefits roll over, yes, but no, the work is nothing versus the income people -- who wants to work if you can get it free? i mean, i think anybody who thinks that is not trying to find employees i need about 22 employees. and it is just really, really hard to find anyone steady if it's dignity of work, we treat people -- you know, we did a lot of work about how to treat people and i think that we -- we try to -- it's like costco we try to do more than everybody and it just doesn't matter the dignity of work, take that off the table. it's the benefits are just too great versus working why would you give up all those benefits just to work for $18 an hour it makes no sense. no economic sense. >> jim, the other issue you're

facing in restaurants and businesses everywhere, is higher input costs, everything from chicken to just about any commodity you can think of, corn, wheat, grains, all of them higher what's that mean because the restaurant business was always a pretty tough business before, and if you're getting squeezed on every output and every input input, what hap? >> we've been able to pay for everything except avocados where we're taking a beating what is really killing us is delivery if we have to give a doordash more than 15%, we lose on every single thing we send and we lose twice, we don't get to pick up money at the bar and delivery kills us. we just don't want delivery. it just is awful and our margins are just, why, we lose with every single thing we send out. it's terrible. but they don't tell you that i'm tell you that. >> you got to wonder what that

means for doordash. >> this is a growth industry >> it's captive. >> it's captive. they're all charging the same thing. i went over the numbers in preparation for today, and it is north of 15% that they take, it is just, we're sending food to keep goodwill but we'll lose money. that's not a way to run a restaurant that's the truth i don't know why people don't tell the truth about this stuff. unless you've got the scale, with starbucks, mckinney's, i mean unless you got the scale, you can't barge within these guys they own you and just hope people want to come by, and don't want to get it delivered >> firsthand experience with takeout at our favorite place, which will go unnamed in summit and couldn't get served in the restaurant, two hours, to get served, because of all of the takeouts that were going out you know, with my 91-year-old mother >> that's incredible. >> with my 91-year-old mother-in-law saying let's just leave. pretty sad that's terrible. >> outside seating >> no outside seating because of

the rain i think that's what did it i think all of the cancellations did the takeout which just overwhelmed the place. >> it's incredible that really upsets the whole balance. takeouts is bad for us but not as bad as that. >> remaining unnamed terrible. >> see you later >> thanks, jim see you in a few minutes coming up here on "squawk box," the market seemed to like friday's big jobs miss maybe that's something wall street should have expected. some stats you need to hear when "squawk box" comes right back. 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, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim.

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welcome back to "squawk box. time for morning movers with a look at shares of energizer holdings, roughly up 2%. armorall and stp brands, it reported better than expected profits and revenues and raised the full year forecast shares up. and southern copper, shares up nearly 4% watch it and every copper producers that rise on all time highs on expectations of higher demand and concerns over supply

constraints. and shares of live nation entertainment, 3,000 shares of vom volume the concert and live entertainment ticketing company gets an upgrate fwraid to buy from hold over at jeffries an lifts calling livenation a pure play recovery and long term growth story with attractive entry price after the stock slid 13% over the last few weeks so watch those shares three in the green back to you. >> thank you, dom. great to see you. the next guest is friday's market performance on a much weaker than expected jobs report was he says predictable. in fact, he says that going back to 1998 when headlined nonfarm pay rolls missed expectations by 100,000 or more in a rising rate environment, the s&p 500 has rallied in a median of about 1%. joining us right now is paul hickey, the co-founder of beespoke investment group. you remain bullish

paul, explain yourself i think a lot of people think the market at some point will have some kind of retreat. you suggest that history says something else >> yes, so i mean when you look at, andrew, the market, most preoccupied with the fed, and when the fed is going to start removing accommodation and tapering and ultimately raise rates, that's the biggest concern, and the fed says one thing, the market thinks the fed is going to go earlier and what better than the weakest jobs report relative to expectations ever for investors and i think that was the big sigh of relief for the market. we've been in this gravity-defying market for the last year. we've been over the 50-day average fof the s&p 500 over 90% of the time in the last year the s&p has been oversold on only 2% of trading days over the last year. one standard deviation below the moving average am and there has only been eight other times throughout history where you've seen that happen, and while the

ultimate, or the initial reaction to that kind of situation would be, okay, well, we're due for a reversion to the mean and some sort of reality check from this excuse rance, looking at those -- exuberance, looking at those prior periods and one year later are the s&p was better than average returns on a median basis and higher every time in those eight periods and the main drivers, or one of the main drivers of stocks has been all of this liquidity in the market, and based on the pace of job creation that we're seeing over the last, whether you want to look at the last three months or the last six months, or even the last nine months, it's going to take, you know, well over a year to get anywhere close to these pre-pandemic employment levels >> paul, we've only got about 60 seconds, but depending on who you believe, there's a view that the print next month, or the month after, on jobs, you know, could be very well big and if this was some kind of

aberration, in which case the fed may actually have to move and think in a different way you had charles evans effectively just say that i think on our air. >> right, and yes, that could happen next month. and last friday, there was a lot of expectations that it was going to be a million, too, so i think the fed is willing to say we have to see these numbers, and see the substantial progress, not just anticipate the substantial progress before they're going to act and i think that's going to keep this fairly loose liquidity environment intact for the time being. >> so paul hickey says, still on, we will see whether risk remains on paul, great to see you appreciate your perspective. and a little bit of this historical context for everybody. let's take a quick final check on the markets before we hand it over to the folks on "squawk on the street." right now, you're looking at the dow, let's show you what it looks like, 123 points higher and about a half an hour, it will open and we'll see whether it stays there, and s&p 500 up about 3 points and the nasdaq

off, right now, at about 49 points that does it for us today. joe and becky, another day, another monday >> right now, the s&p is just about two points from an intra-day high, and the dow is already an intra-day high if it opens at this level. >> okay. make sure you join us tomorrow, "squawk on the street" begins right now. good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber dow futures are green with dow, s&p at record high, as you heard the gang say, another hectic week headed our way with 14 fed speakers, 16 s&p earnings, everyone talking pipeline, musk on "snl" and pisani and the nyse the road map begins with facebook and alphabet, downgraded at citi and nasdaq futures point to a lower open. >> state of emergency. a massive cyber attack takin