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 taking a

key fuel pipeline offline which supplies nearly half of the eastern u.s. >> and as we continue to focus on crypto, ethereum is jumping past 4,000 bitcoin hitting a three-week high but dogecoin continues to tumble following elon musk's "snl" appearance >> we're going to get to that, guys we will start with the citi downgrade of facebook and alphabet they go to neutral at this point, they say given some of the tough comps, the large cap internet names are going to face, they say we're not recommending any in that space, jim, except for roku, and we should probably point out that it is not the only downgrade today. barclay's is cutting oracle. atlantic cuts intel. what's going on? >> it's like a cyber attack on the nasdaq it really is amazing now, when i read through the citi downgrade, it's talking about how ad revenue basically plateaus and that is just not true. it's just not.

i mean it's a vision ofwhat might happen but i think what is really happening is there a revulsion against faang again, and david kostin did the same thing, talked about how these stocks represent too much of the s&p. interesting to see again intel, amd is killing them but intel continues to persist and saying that they are doing well the oracle, the stock, is up so much bigger versus the earnings. and david, we're seeing everybody cut their price targets on the draftkings, anything that is high multiple and people are calling for basically multiple compression when it comes to nasdaq but not when it comes to the oil, not when it comes to the coppers or lumber, or the financials. >> which are performing well and we are seeing this diversion in the market and that's reflected today. at least a half hour from now, we will get started with trading. and the nasdaq will be down. where the broader market, embraced by the s&p is, going to

be up. that has been the case lately. that has been the case this year and you and i have sat here a number of times at the beginning of the show talking about value versus growth and we're seeing it against. >> nucor is getting less valuable, which i think is a great company, just in terms of the multiple and then freeport is being driven, there's just, what, people don't understand, there is these etfs, they carved up every etf, and the etf gets bought and the stocks follow one of the things that is kind of insane. >> we had the report last week >> the most happy fella. >> a happy fella. >> one of the things, carl, is there is retail, they're looking at the case of retail, and some of these companies are looking at price increases by the week steel could do that. copper obviously lumber is manipulated at this point, there is just not enough saw mills there is throughout this period

a desire from to get away from the nasdaq and i think that is the most salient thing that i see right now, carl. >> to your point, jim, about the difference between people's long-standing believers about the trend versus what is happening to the price shorter term, it's something that cathie wood brought up on her appearance on "closing bell" friday and kind of ties in with the general sentiment. take a look at what she said. >> i love this setup you know, the last time i was on, i think i said that this rotation was good news, because it meant the bull market was broadening out it was strengthening and the worst thing that could have happened to us is to have the market narrowly focus on just the innovation space, and instead, it has broadened out, so that year to date, i think it's energy is up 40%, financials are up 27%. our point of view, five-year

time horizon, nothing has changed except the price >> jim, does that speak to you >> nothing has changed except the price. i listened to the interview which was quite good, and thought about the head coach for a southern nfl team, who at half time was down 21-0, and he started his speech to his team saying we've got them just where we want them and i remember, why did you say that i don't know it is the most stupid thing you could say. well, when you're down 30% and others are up, i guess you got them just where you want them, david. >> it gives you an opportunity to buy even more. >> oh, yeah. >> if you believe. as she believes. >> she would probably buy some trade desk, that is down substantially. >> well, we're still talking about cathie wood, i don't actually have her trade sheet today. usually i have it with what she bought friday. and i don't have it in front of me

it doesn't mean, listen, over time, she has had the best performance. >> five year. >> that was then and this is now. >> true. >> they're killing these stocks. they're taking all of the air out of these stocks and including her relatively unknown stock, now they can come back, carl, the five-year is, that's terrific, and i hope that the people who are in there, carl, have a five-year perspective, because i think they will do quite well, but right now there are people who expected a five-day return, which is what she gave here, and that's struggling including the man who is on "saturday night live," whose stock and as much as i love him and what did he call himself, what do you expect, kinder, gentler chill guy? tesla has not been a great stock. these things all worked for a period of time and now, carl, they're not working. you got to be in nucor these people don't do that. >> except if history is any guide, jim, over time, that won't be the right trade. >> maybe they're in the next google and facebook. >> nucor >> no, not nucor

i'm talking about woodstock. that's what i call them by the way. >> who >> woodstock. >> who do you call woodstock. >> cathie wood's stocks. >> oh, all those stocks. >> why not >> that was an unbelievable concert. >> that's woodstock. >> in bethel, new york, not woodstock. >> stay focused. >> sorry. >> i am focused. i'm focused on woodstock. >> i'm not making, she's obviously got a beat on things, but what she said and another thing i don't approve of, a lot of the stocks are regarded as incredibly volatile in the nasdaq and she uses what she calls, what, cash equivalent, i don't know, david, i can use, i could easily say that right now, facebook is cash equivalent, and i think you would say to me, jim, you've lost your mind >> jim - >> go ahead. >> not yet you haven't. i'll let you know when it happens, carl. i'll let everyone know when

we're fully there. >> cash equivalent? >> i'll ask them if they're cash equivalent down 37% for the year. that could be cash >> what were theyup over the last five years? >> the five year, the five year, but david, that was a different market this is a market that is about an economic recovery like we haven't seen >> which we think may be an aberration. >> and talking about what we have been talking about, squeezes on various types of commodities over the weekend, as you now know, the largest u.s. fuel pipeline mostly shut after the ransom ware cyber attack, supplies basically half of the east coast we will be talking about the impact on the fuel in the coming blocks but in the meantime, the commerce secretary talked about all hands being on deck on the sunday shows take a listen. >> it's an all hands on deck effort right now and we are working closely with

the company, state and local officials, to make sure that they get back up to normal operations as quickly as possible, and there aren't disruptions in supply. >> all right jim, so how close of an eye are you keeping on prices today, and i guess what does it say about concerns about future attacks, whether it's in energy, or ex-energy in the future? >> well, we've always heard that utilities are vulnerable, and this is a utility to some degree, and people are just saying that, that you've never seen it, well, this is big, i mean maybe this was a ransom wear attack, we don't know, there's a lot of what do we know and what do he would not know, and ransom wear attack and maybe they wouldn't pay and a lot of companies will pay the ransom ware. >> they said this one would probably hit and they weren't going to pay. >> i see the number that was being asked was so high that it would have been material. >> right because i keep hearing about companies paying ransom ware >> typically, those who are holding these, whatever assets hostage, ask for a number that is kind of just right, right

not high enough to really crush you. but high enough that it will make a lot of money. >> exactly right charlie munger has talked about the idea that these cryptocurrencies basically are evil well, it's what you pay your ransom ware. and i haven't paid, you know, but this is what i know. >> understood. >> the larger question continues to be i think jim, and carl, what, if an eastern european criminal gang has the capability to do this, what are our true adversaries in china and russia actually have the ability to do? >> they have a thousand people, there's apparently a room of a thousand people, according to someone i'm involved with. >> in russia >> you're talking about solar winds. >> not to mention the incredibly well organized chinese cyber espionage effort that's been going on for a decade. more than a decade. >> the people i'm involved with keep saying the same thing when will the united states play hardball >> that continues to be a key question when will we hit back in some

way? >> yes. >> but the point is, if you can take control of a pipeline to this extent, you're just a criminal gang in eastern europe, that is potentially alleged here, our true adversaries would have the ability one would expect to do whatever they want. >> right. >> and that's why -- >> electric grid with the pipeline. >> and that's why conoco, they will be able to jack the prices up and probably not involved that much with - >> it is like the winter storm in tyson, they mentioned the winter storm was there for them, but they're raising prices >> but carl, the underlying commodity is not getting hit or moving that much. at this point. there seems to be enough on hand, right? there's enough available in terms of gasoline. right? >> yes >> okay. just making sure >> i just want to check with you. >> it's another, carl, it's just another commodity that people are going to say, well, jay powell, this, that, like raising rates will suddenly open the colonial pipeline. >> right that's been the argument for a bunch of things. how does raising rates open more

saw mills in the short term, jim? it's not really related. we do want to mention, we do want to mention covid cases continue to improve. last night, 22,000 new cases, down 7,000 from a week ago, and the nyse is opening even more broadly, as we now know, starting today, for the first time in more than a year, we'll be able to say, let's get to bob pisani at the nyse good morning, bob. >> good morning, guys. it's been a long time. it's been too long but it's time to start coming back and by the way, that is the nyse's message today the nyse closed in march of last year but it reopened in may. most of the nyse staff, as well as a good part of the trading floor have continued to work from home. but now, like much of the country, the nyse is just starting to call people back to work starting today, the nyse is adjusting its covid protocol, and will allow more people on to its trading floor. members of the floor community

have been fully vaccinated will be exempt from certain restrictions including a random testing program. they will also be allowed to remove face masks so they must continue to maintain social distancing that of course is six feet or more and if 100% of a trading firm's floor-based staff had been fully vaccinated, the firm will be permitted to bring them back fully staffed. media organizations, including us, will also be permitted on the trading floor, everyone will still be required to wear a mask when walking around the floor. now i am in my own booth, here on the floor, and so i don't have to wear a mask because we have our own little situation here, our own booth, and by the way, it's not just the nyse itself, there is an sbirt community of designated market makers here as well as brokerage firms both large and small here on the trading floor, many have been switching gift, alternating between working at home and working on the floor and you'll see more of them as well now we will be talking to the nyse president stacey cunningham at 9:40. she will give us a good idea of

why she's reopening right now. and what other ceos are telling her as well. of course, we'll get some comments on the market for her as well. and of course, carl, david, jim, looking forward to having you back here sometime soon, as well >> we can't wait guys what do you think what does it mean for us >> well, i mean the floor's energy, but more important,i get to be with you, carl we were with carl last week, for cinco de mayo. and my wife was saying, do you ever get to see carl well i see him virtually so great to see him. >> it was. >> it will happen as things continue to move in a very positive way. >> when did they get rid of masks here >> you mean here as in what? >> in this company. >> you mean indoors? >> yeah. >> i don't know. >> scott gottlieb this morning -- >> that's why i said it, scott gottlieb is the voice of reason throughout this. >> and i would never mention where we are, but it was like

me, take them off. positivity rates are very low. >> thankfully. >> it's done we're done who knows. we're getting there. >> better be safe than sorry who knows. >> yeah, that's true but gottlieb's been saying, look, we got to open just as aggressively as we closed. bob, we can't wait to see you, obviously, we'll talk to you in a bit. in the meantime, futures are a little bit mixed nasdaq weak as we said on that citi call. we're back in a minute if you wake up thinking about the market and want to make the right moves fast... get decision 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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what is it man >> i keep telling you, it is the cryptocurrency you can trade for conventional money. >> oh, so it's a hustle. >> yeah, it's a hustle >> he just said it, man. it's a hustle. >> that was the moment michael shay and elon musk on "saturday night live" over the weekend talking about dogecoin, losing a third of its value shortly after that moment and working to try to get some back here, jim, and then of course, we got the space-x announcement about the doge-funded lunar mission. where do you think we are in popular sentiment around the coin >> i think that at this point, the people who do doge coin just are very self interested in promoting doge coin. if you have dogecoin, you have a lot of it, maybe you want to say doge coin. i know robinhood did crash

crypto for one-half hour at that moment, but robinhood was also the top app in the app store all last week. so david, what keeps happening is, as i see it, more new people come in, and a lot of people come in, on these, and now it is ethereum, the momentum in ethereum is extraordinary, extraordinary. >> well, ethereum is used for any number of things >> sometimes - >> many things you have to -- the market is relying on ethereum. >> last week, you had to go to the square conference call, it was really brilliant >> you've been keeping track of this real quickly, jim, to come back to the robinhood cohort which of course we spent now nine, ten months, it was probably a year ago when we started to become aware of this new group of investors who perhaps, because betting was not happening, any other number of reasons, where are they in your opinion and we started the show talking about growth stocks getting hit. these were many of the names that were favored by, including

of course tesla itself, by this crowd. >> down 25, 40, i don't think the robinhood cohort has yet discovered the wonders of let's say -- they just don't know their way around southern comfort and they're not really attracted to warehouser and i think they're losing money and doubling down and it's not like these companies are real, but the market has no appetite for them and robinhood, as powerful as it may be as a cohort, you can't, you can stand there, and you can buy all of the service now, and netflix, all of the service, all of the snowflakes that you want. i have ray on tonight, these companies, all blew out numbers and people hate them

institutions hate them robinhood people i think are still buying because they haven't heard of the stocks that are, they're not buying 3m which recovered very nice from the miss and they're not buying raytheon technologies that's where the action is they're buying a lot of amc and gamestop still >> still >> yes >> but they love the movies and they love the go-dough >> ryan? >> all these references. >> it's great. >> carl? >> i love when we layer them one on top of the other guys, and it's a good discussion where the market is. the opening bell in nine minutes on this monday don't go anywhere.

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less than three minutes before we get started with trading for the week let's squeeze in a mad dash. walmart. walmart plus was viewed to be not doing as well as amazon for a couple of months and that crushed walmart's stock. just crushed it. morgan stanley this morning comes out and says walmart plus update, it actually says there's been an uptick in membership this stock may have lost space,

when things were down, and i called them, the company was unwilling or unable to confirm the slowdown but here we have a step-up in walmart plus membership. and basically, that should reverse what ailed the stock. >> if they're right. >> right and you can't get anything confirmed because walmart will not tell you >> walmart doesn't share that much. >> these are survey, david but the survey is better than it's been, which is important. >> the survey from morgan stanley, the worry about the ranks of the subscribers is unfounded. >> and the check.com guy retired and a lot of people felt like he was the brains behind the operations and i actually agree with that but it's possible that he just has a legacy and there was a deeper bench i think there's a walmart piece, it is a smart piece and so are the last pieces with a slowdown because apparently there was a slowdown. >> back to the idea of looking at things over five years which is probably a good way to look at them, take a look at five

years of walmart doug mcmillan and the strategy changed or pivoted and the investment in e-commerce and the investment they made has paid off if you're a long-term investor here. >> and i remember when he cut his, when he raised his wages. >> there it is. >> and he cut the earnings. >> that's five years. >> that's what you want to see. >> take a look at costco they have done over a five-year period, and better than that, an costco doesn't have e-commerce, they just started and of course they will be a juggernaut now that they started. retail is a great place to be. burlington stores, which you and i have to shop at. and the lines are so long there at burlington, it is incredible. matthew boss talks about l brands, american eagle, gap stores coming back so the mall has been like the best, mall stores have been the best place to be and matthew voss comes out and says in satiable demand. how is this possible >> i thought we decided that the

mall was dead. >> b malls, "a" malls are still in >> and have you been to a mall lately. >> not in a long time. >> okay, spacs i'm sorry. >> i don't want that 42,000 dollars -- >> i don't want to get in trouble. i know you outside of work >> carl, we've known him, we pretend we don't know each other. >> i wouldn't pie, i wouldn't buy a $42 necklace, let alone $42,000. >> there is the company bell nyse and nasdaq as well. s&p 500 at the bottom of your screen jim, we're still kicking around answers to that conundrum that the jobs number handed us on friday, a lot of discussion from yellen of course, talk over the weekend about whether or not that unemployment supplemental is truly a disincentive to work,

and steve liesman in the last half our of "squawk box" and talked about other potential reason, child care, better job matching and the idea that one print is not enough to draw conclusions. here is what charles evans said. >> looking for outcomes, when we said that we are continuing to buy assets until we saw substantial further improvement, towards our mandates, and the chair says one employment number is not enough, and then we get a weak number, i think we're going to have to see more strong employment number, and we're going to have to see inflation, and it will be delicate. we'll see transitory inflation that will look like it is above 2% is it going to be relative prices or something more sustainable? i think it's going to take quite some time for us to actually see it in the data assess it. >> we're going to get more numbers this week, jim cpi wednesday. retail sales friday. and a large part of the market is bracing for numbers that will look hot. >> they should the retail sales in particular

"mad money," friday, very, very big. so let's go through the math here i have to pay $22 per hour in order to be able to beat the unemployment benefits. i can't. at $18 an hour, i'm paying, which is the highest i've seen in the area that i'm in, i am still at a $4 disadvantage to unemployment benefits. now, i know there are many people who come on the market, carl, many people come on the network and they say, the dignity of work. i know, that's what freud talked about, the dignity of work, but the dignity of $22, i can't. you know, and especially when i have so many people doing delivery, which i lose money on, on every delivery order they take more than 15% i lose money on and i can't pay $22, carl, that's crazy i was paying $15 before the pandemic >> it's funny, now alliance has a memo out today citing a bank of america study that said basically if you're making less than 32 k, it pays to sit at

home at 15, that's about 30 so the range you're talking about, jim, 15 is a fulcrum point. if you're a believer that that is the actual factor evans did suggest that the number of schools closed creates an issue for parents who want to go back to work but no place for their kid to go. >> san francisco, no in n-school >> there is the idea that some people who are in the industry that you're talking about, restaurant, hospitality, are reassessing their career choinss as well. >> true. but there are 150,000 restaurants that are closed. you would think that the ones that are open would be able to get -- we have seven people who called us and said they would come by and only one showed. what is that they can claim they tried to get a job and they're okay you know, i can't have seven people and six people not show i mean i don't understand why anyone thinks, we have two restaurant, one of them is doing very well, but i can't pay it. >> and are these, including tips

and that >> no, just base you got to pay. >> you have to pay >> i'm paying for my kitchen costs. i'm paying what you would pay for, you know, a true -- >> and raise price force the customers. >> yes, i did the pricing menu and jumped things up $2. >> percentage wise. >> a $6 beer to $8. >> $6 to $8 for a beer. >> well, jim, we definitely heard from tyson today we're seeing substantial inflation across the supply chain. likely create margin pressure during the back half of the year i don't know if you saw this last one on chipotle, raising average wage to $15. and i guess, although i only saw the flash head, including a path to a six figure salary within three years. i guess that will be part of the selling point, if you were to come in and inquire. >> i knew they would have to do that remember, they make more money per unit almost every other

publicly-traded stock in that business so they can afford to do it. i know that the stock has been under pressure though, because of it. it's not really, they have a very good leverage situation, on food, that food is not hurting them labor will hurt them now but as bad as that is, you got to take a look at stocks like trade desk ttd, which reported a quarter, that on the service, it was quite good, there was one line that, you know, they had revenue up 37%, and it was $220 million but there was consensus of 217 million. i mean so maybe that was enough. but ttd, that's the nasdaq, david, when i see trade desk, that stock would have been up big on a similar number, jeff green is a great ceo, up big, i believe on a similar number, and this is another one of those stock, down 30%, i have him where i want him, right? >> right. >> i guess this is again, a dsh woodstock. >> giving you a buying opportunity. >> a woodstock >> you got that five-year

perspective. >> give me the five-year perspective on apple down 3% for the year. >> and i think apple is reinventing itself it has 5g. it's a buy and kostin, talked about how much the companies overindex on r&d and operating cash flow and made a case for them even as they were basically saying they were over-owned. i mean i love kostin, so he is a delight to read, but there is a notion that these stocks are too owned but also make sense to be owned. david, you look quizzical? >> i'm not looking quizzical facebook has had a very good year so far. alphabet obviously even moreso >> both are down on that downgrade from citi. they're doing extraordinarily well they're not overly expensive. >> he is talking about ev over ebitda these are all of the, the times sales stocks are getting clobbered. the times earnings stocks are holding up. >> so the snowflakes

>> even though i think that snowflake is going to have a bang-up quarter, it's not the kind of quarter that you're going to get from alcoa. do you think that robinhood people know alcoa. do they even use tin foil? do they call it tin foil >> it doesn't really grab the imagination i guess in the same way. >> the imagination doesn't play a role >> the way that dogecoin can you can let your imagination run wild there. >> i was someone speaking about a spac - >> everyone has a spac that's not a big deal. >> you're the only one at this table without spac or one guy with a spac >> only one guy. >> who else has a spac >> carl, no one else had a spac? i was completely let down by this group [ laughter ] >> yeah, if you had been with them maybe eight weeks earlier, it might have been a different picture, but they missed it by that much. to your broader point about what

is working this morning, chevron, 3m, nasdaq is down a full percent we haven't quite touched on marriott but the quarter occupancy in u.s., canada, back to the 40s, we started the year in the low 30s they did talk about green shoots in corporate which is interesting. >> they gave the allusion that china is almost back to pre-pandemic levels. i know the stock has to get hit a bit but i also know that the reopening trade is alive and well this is constant livenation today, people recommending livenation. tony capuano will be on 10:30? oh, good i think it is worth asking him about business travel. we have certainly not seen any pickup in it at all. david, you're correct in kron klging that business travel doesn't exist yet. >> and how much on 2019 levels and the normalized levels.

and that could take years and many of the airline executives we talked to as well gary kelly says i just don't know and you ask the question and a lot of people don't know, and the expedia ceo saying, we'll come back, but the question remains, how quickly will it come back? >> one of the things that is difficult, if you want to go visit an office in order to be able to see key decision maker, they may be in hawaii. >> they may not be in a central lized location they may not still want to let you in the building. it depend on the company or you might have to go through lots of protocols because we have perhaps not yet changed to reflect the current environment and the risks inherent in terms of getting covid at this point which thankfully are very low. but people are going to, business people are getting back on planes, they're starting to go see some clients, but again, the internal kind of thing, where you go and visit your unit here, or there, that may not happen and in fact, they may not be in the office either so it could be many years before we get back to anything approximating where we were.

>> and the nasdaq stocks >> for business travel. >> nasdaq stocks involved in business, made it so business was holding up during the pandemic, and because, you know, people basically are hybrid. ring central, the ultimate hybrid they stated, look, we can do it anywhere if they can do it anywhere, it's down 32% and by the way, is that a woodstock? >> right i don't know i mean zoom, zoom video high was $588 still up a lot over the last 12 months. but it's $289. >> the last 12 months. >> it's still up >> up 86% over the last 12 months but it's down 300 points from its high. >> that's what i'm talking about. i mean, you know, people are just, this stuff was at 450 in february it's at 289. that's a robinhood >> jim, there's so many names,

so many names in that camp, dkng, a bunch of others, 30-plus from the highs which doesn't get talked about enough which so much else is working and it affects obviously the overall indices. >> a record high on the dow. 8 points shy on the s&p. let's get to bob pisani with a special guest this morning hey, bob. >> the nyse has been open since may but reopening even more today, let's talk to stacey cunningham, the president of the new york stock exchange, she joins me here, it's been a long time. >> it has been, bob. great to see you welcome back we couldn't be more excited to have you back in the building. >> i am too. >> and why now what is changing today what made you say may 10th, we're starting to call people back more. >> we've been doing the same thing that we've been doing the last year, monitoring what is happening locally and putting protections in place based on the local conditions, so we have back, since last may, when we reopened, we reopened with a various number of layers of protection

and now that the local conditions are what they are, and they're much, much better and the prevalence rate locally is much lower, we can remove some of those layers alongside the fact that so many people are getting vaccinated, so the vaccinates are leading us to where we are today and keep monitoring conditions as we go forward. that is not going to change. >> the nyse seems to be emblem mattic of what is happening across the rest of the the country, slowly but surely people are coming back in and the glide path about going back to work. >> when you asked me the question a year ago, what i heard consistently across the entire ceo base was everyone was positively surprised by how productive their teams were. and now as we talk to ceos that message is different across different sector, geographies, locations, people are thinking about their own business and some feel like we could do a lot of this remotely but many others are missing that cultural impact that you have when you bring teams together, the fact that teams get more creative, so people are trying to get their teams back together. and just my own personal experience, as i've seen people

come back into the building, they're excited to see each other and they didn't realize they were going to be. >> there is a camaraderie, you cannot get from working at home, and yet, we saw trading done at home, and even the nyse systems working remotely, explain that experience, because for me, as a close insider, watching from afar, it all seemed to work pretty darn well. >> yes, it all did work very well and much like those ceos were saying last spring, we're excited by how well we can do things remotely. but that doesn't mean we don't lose something what we saw when we closed the trading floor was that stocks traded with more volatility during that period of nine weeks that the floor was closed, so when we reopened, we were trying to restore that full level of service to our customers academics actually found it when they studied it that we did see a sell involve in market quality during the nine weeks that the floor was closed even though we still trade better than most markets. >> let me ask you about some things on your plate you have a new administration here, a new head of the s.e.c., gary gensler, just testified recently in the house, a lot to say about gamestop, a lot to say

about robinhood, a lot to say about retail trading, it looks like he's preparing a report on what he thinks need to be done regarding retail trading and the protection of retail traders have you had any input with his office or with him directly about how to proceed on that >> bob, we're constantly talking to the s.e.c. about our observations in the market, about what we're seeing. gensler has been in the seat for weeks and we are looking forward to working closely with the team closely as they analyze. it while the economy and the markets slowed down, well markets did not slow down. we were exceptionally bigger and the retail investor is a much bigger part of the market than traditionally and one of the things to recognize and we talked about protecting retail investors, there's two component, there's protecting them at the time they're making that decision to trade their order. and so influences on that might be online reddit and online message boards or broker apps, and then the best execution. >> and before we let gourks

colonial pipeline, obviously an issue, is the nyse safe from a cyber attack how are you set up to protect the trading operation. >> we are constantly working, not only with our own teams but others in the market, with our regulators, with others on ensuring our markets are secure. >> stacey, we very much appreciate having you. >> i have something before we go i started on the trading floor in the '90s and so throughout my entire time down here, you've ban fixture on this floor, there's no way we're going to let a global pandemic stop bob pisani from broadcasting from the trading floor, so you are the chairman of the floor as we saw, as you got a warm welcome when you came back, so a small token of our appreciation. >> is that a gavel >> it is a gavel, you know, we like bells and gavels around the nyse. >> a great honor thank you very much, stacey. and again, a great honor to be here at the new york stock exchange since 197. and i'm just happy to be back. thank you very much, stacey. stacey cunningham, the president of the new york stock exchange

quite an honor, carl >> oh, bob, that is fantastic. and you are so deserving of being the first one back we will be talking to you a lot from there jim, i'm having flashbacks, i don't know about you. >> it's a warm place i think it's a very warm c convivial atmosphere and center stage. and center stage is good and an ipo and a crowd, and that energy is so exciting >> do you think we will be able to talk to people, the ceo will they let us come on >> apparently we will have to expand the desks though. >> this is going to be like a great environment, and we can put our hands up and we can touch. geez >> we're getting there small steps. we're getting there. >> we just got to push through. >> fascinating i keep coming back, vaccinations, no one has asked me if i'm vaccinated, they'll

take my temperature, which is indicative of absolutely nothing but they don't want to see my card. >> do you have the excelsior thing? >> no one cares about anything being vaccinated means nothing, carl how can that be? >> yup, yup, i think there is a general assumption if you're out and about that you have been at least that is my experience in these early days. but we're going to definitely try this suit on, so to speak, and see how it fits and where it needs to be tailored but we look forward to going back. rick santelli this morning, hey, rick. >> hi, carl. indeed, it's exciting to see bob back on the floor. hopefully chicago is not too far behind but i don't know if they will be passing any gavels to me i don't know if terry duffy will be getting me a gavel. i might get a little crazy with that congratulations, bob pisani. one week of 10s. what should really jump out at you, 1.46. spike, low yield, big high price on friday. and the jobs report, all the news that was talked about for

all weekend. with good reason whether it is an american jobs plan, family plan, infrastructure plan, all of the trillions of dollars we're spending, in many way, after the peak worst effects of covid is really making the dynamic that many want to pay attention to. all this money really warranted at this point? are we getting our money's worth? are some of these policies actually keeping people? we don't know. we know that all of these areas are contributing to people not going back to work a little nervous maybe customers don't want to go child care school and yes, benefits. it's all contributing. we don't know the amount but what we do know is the amount of more policy programs that seem to be coming down the pike so this is going to be a very contentious issue, and you talk about politicizing a jobs number, i've never seen one more politicized than this. look at an august 1st start to 10s. what do you really want to see here, is since the august 4t low yield close of 2020, friday's intra-day 1.46, since

1.74, the lowest intra-day level. so you really want to pay attention to that. the market most likely is going to be drawn to that. we're only down a couple basis points right now look at a mid march start to the bund contract. they've been much more aggressive in their sell-off, pushing rates higher and hinting to taper, but hinting at a taper and doing a taper are two different things finally, the difference between 10s and bunds reflecting that taper psychology now under 1.80 the tightest it has been in two months and everybody's talking about taxes, whether they are going to be retroactive, oh, my god and look at the one week of the muni etf. up, up, and away and of course, this is the tax exempt sector and it's going to stay, hot, hot, hot. not to mention record inflows. carl, jim, david, back to you. >> rick, thank you rick santelli. still to come this morning, as we said earlier, marriott ceo tony capuano says booking demand

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let's get to jim. >> last year there was a stock called alcoa, now it's at 43, and this is emblematic of what's going on this company makes aluminum. and, you know, if you tell the robin hood people to be in this instead of roku and netflix, they're going to say i don't know what that is, but this is what is working.

with the exception of home depot and lowe's because it's planting season, this is what's working, the materials. >> there's no doubt about that, jim, the slx, back to a multiyear high a number of steel components are at all time highs. >> do you need to have robinhood people follow these stocks we have to least show them >> vlad shmunis and mark anderson are part of the great depression of tech tocks, and they're doing fabulously >> jim, we'll see you at six, good show. "mad money," 6:00 p.m. eastern time dow's at 220 record high. don't go away.

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good monday morning, welcome to another hour of "squawk on the street," i'm carl quintanilla with mike santoli and david faber, morgan brennan has the morn off citi downgrades google and facebook, but the dow continues to surge record highs for the blue chips and the transports on this economic reopening mike >> yeah, we are 30 minutes into the trading session. here are three big movers we are

watching starting with facebook and the continued pressure on tech citi downgrading facebook and alphabet to neutral, saying they quote aren't recommending large cap ad centric internet stocks right now, except roku and third quarter sales coming in 3% at year ago levels as european lock downs muted demand for cody's cosmetics, and we'll end with marriott, beating earnings estimates saying it was seeing a rebound in demand as more people received covid vaccinations and our first on cnbc interview with the ceo of marriott >> energy is leading on this monday as one of the country's biggest pipelines, colonial pipeline remains closed following that cyber security attack the pipeline moves about 2 1/2 million barrels of gas, heating oil, jet fuel, carries nearly half of the east coast fuel supply wti did get above 65

there's a lot to learn still, hey, eamon. >> that's right. and in fact, we have some breaking news here on this group. the group is called dark side. they are allegedly the group behind this attack on the pipeline that's caused so much disruption on the east coast of the united states. they have posted a new statement now on the dark web. that statement was obtained from the dark web this morning by the cyber security firm cyber reason out of boston. they have turned it over to us here is what this hacking group is now saying in the wake of all of this publicity about this damaging attack, they say, we are apolitical we do not participate in geopolitics. do not need to tie us with a defined government and look for our motives. our goal is to make money and not creating a problem for society. from today we introduce moderation, and check each company that our partners want to encrypt to avoid social consequences in the future carl, this reads like a semiapology from the hackers who say they don't want to have

social consequences and in the future we're going to be more moderate and check with our partners to see who it is they're attacking. remember, this group, darkside is a group that operates the malware and sells that malware to other hackers who then conduct attacks. you can read this statement as maybe a bit of a split between the original developers of the malware and the people who actually carried out this attack on the oil pipeline. let's take a look at who these guys are what we know so far. this coming from cyber reason which has been doing some analysis of this entity. they target english speaking countries. they avoid former soviet block nations. that gives you a big clue potentially as to who they are they have a code of conduct. they're sort of trying to position themselves as ethical hackers, even though they're stealing all of this information and stealing all of this money they operate in a highly professional way the group has a help desk to facilitate negotiations with their victims, and claim to donate a portion of the stolen funds to charities

although some of the charities have rejected those donations. they have also threatened nasdaq listed companies with cyber attacks and the idea potentially being that they could sell tips to hackers about companies that have been hacked and are about to experience a cyber attack so the hackers could short the stock, and get ahead of any disruptions. so a wide variety of criminal activities under this darkside umbrella, but we have this new statement this morning, carl, from the group that appears to express remorse with what's happened here with the colonial pipeline, and does appear that, you know, you've got some angsty hackers. >> it's so fascinating i mean, i can imagine someone who works in operations at a mid atlantic airport scrambling to get jet fuel today they might say color me skeptical that you don't want social consequences? >> yeah, i mean, absolutely. rilgt, i mean -- right.

i mean, this is a criminal gang, posting remorse for some of the enormous damage that they have done, and suggesting that they're going to put in place new procedures of moderation, and they'll work more closely with what they're calling partners they're talking about, when they talk about parntners, is other criminals they sell this malware to as a service, and then the other criminals are conducting the attacks. you could surmise from this that the people who developed this malware are upset with the people who conducted the attacks, and they're actually two separate groups, but we can't lean too far into this because obviously these are criminals posting on the dark web, and you've got to assume that they're potentially lying or likely lying about everything. >> i think we should call the help desk. i think we should just, you know, check in with them you can't make this stuff up i'm curious, though, given your broader coverage of of these issues, when it comes to sovereign state actors whether

it's china or russia and what they can do. can we put it in perspective, if a criminal gang can take down a pipeline in some fashion at least, what can we expect that our true adversaries have. i know we have it on them as well, but let's put this in perspective for our viewers. >> the fear is this is closely coordinated with nation states there's a lot of speculation here we just don't know you have to assume at least that this is a group that has some protection from the russian government or some of the governments in the region because they're operating, you know, largely unfettered by law enforcement at this point, and any effort by the united states to go after these guys, indict them, and try to extradite them from those countries would likely be futile presumably there's money changing hands and some element of protection from the central government, and you look at this choice of target here, a pipeline like this, you know, it's a geostrategic target

it's not just a hacker trying to make as much money as they can. this is a stabling event on a geo strategic level. if they were purely interested in making money, you would think they wouldn't do this. this has an element of political destabilization or economic destabi destabilization which indicates a national security type motivation you have to wonder who's behind this we just don't know. >> certainly brings a lot more attention to the potential threat thanks a lot we'll be back with you for more of the twists and turns. talk to you soon. nasdaq in the red but the dow notching a record high here to chat markets and latest picks, good morning. >> good morning. >> so this is a pattern that we have actually become pretty familiar with here pressure on the big growth stocks, and then cyclical value stocks doing well. that means the market is kind of coming in your direction, and it's rewarded you in the last six months or so with this valuation leadership, but i wonder how it manifests right

now in terms of, you know, your thinking on stock by stock level, how this plays into valuations and whether the opportunity is still there maybe you want to start with one of our picks leader, which i think is very emblematic in the auto sector, great fundamentals, earnings potential and the valuation higher than it's been in a few years maybe take that one up. >> yeah, sure, and it's very important to get context on this you know, we're not going to buy any company at oak mark that we cannot make a cash flow justification for why the current price is trading for, you know, equal to what it's worth. we buy things at a big discount to what they're worth. if you look at the treasuries, they yield 1.6%. you can buy a bond for 60 times earnings and it doesn't grow you look at the market, it's got a 20 pe for next year, so basically, that's a 5% cash flow yield more or less you look at a company like leer,

yes, it has done well, but this is a company, you know, with an $11 billion market cap that is going to produce a billion and a half dollars of cash flow. you know, it's a $200 stock that's going to have $21 of earnings in a cupouple of years though the stock price is done well, the cash flow that it produces for, you know, one of the worldwide leaders in automotive seating, basically a part of the car that's not going anywhere, whether it's an ev or autonomous vehicle, we look at that, and we say, look, that's a pretty good price, especially relative to the opportunity set. >> and nothing in terms of the current production slow downs, and the chip shortages, is knocking that off course >> well, the second quarter is going to be worse than the first quarter in that regard but generally speaking, when you look at the earnings that all of these companies reported in the past couple of weeks, they cite the second quarter as probably the period of maximum tightness.

so if you were to think about it as your family's business, you know, you would say, okay, this is an issue right now, but in 2023, 2024, it should be solved, and that's where we're looking at the extreme cash flow imbalance relative to the current quote. >> you know, when i look at some of the holdings you have, obviously, and you had a very good first quarter in part, cbre contributed to that, we had the ceo on with us last week after that quarter i know you also known netflix which has gotten wrapped up in the selling of some of these big growth stocks. what are your expectations there that lead you to want to continue to own that stock >> so if you're an individual investor and you're buying a stock, i would just always think to yourself what's the cash flow characteristics of this business that justifies the current quote, and in the case of netflix, obviously it trades at a high stated multiple, but this

is a company that in the first quarter two years ago at 10% margins, first quarter last year at 17% margins, first quarter this year has 27% margins, we look at it and we say, all right, this is a $500 stock. it's probably capable of producing 25 or $30 per share of earnings a few years out it's got a monstrous mote around its position along with a few of the other streaming services it's investing a ton of money in content creation to widen the mote, so although it is lumped in with the growth companies, it has cash flow characteristics of all of the stocks that we own. basically you're paying essentially a market multiple in the out year for a company with wonderful strategic positioning. >> more broadly on faang, i know netflix has a few things that are unique one of the bear cases that's being assembled is not just

about valuation, but about exposure to corporate tax reform, exposure to capital gains tax reform i wonder how much of a liability you see that for netflix, for the faang sector, for the market overall, once we get closer to policy maybe being ridden in the later part of the year. >> so if you are a strategic buyer of a business and the business had a billion dollars of sales, you would be acquiring those sales thinking about how much cash they could produce if the tax rate goes from 21% to 28%, those sales are less valuable to you because you're going to get fewer dollars after tax. we certainly factor that in, and when you look across the market, anything that essentially intercepts cash flows from shareholders is something that should, you know, contract multiples of companies the companies that we are trying to identify and invest in are

trading at such high cash flow yields relative to their underlying prospects that we can absorb a corporate tax increase and still say that they look reasonably attractive. certainly there are parts of the market where the buffer to the underlying valuation is so incredibly thin that anything that subtracts from that, you know, can lower the value and the stocks are still a long way from where investors like us would start to be interested, even if the prices have come down somewhat. >> thanks. great to catch up with you this morning. appreciate it. >> yep, i appreciate it. >> as we go to break take a look at the road map for the rest of the hour, including the ceo's of marriott is joining us after reporting results this morning. the tech turn around halted with all faang names in the red to start the new week of tradings. and we'll take a closer look at crypto, ethereum past 4,000, but elon musk's appearance on snl sends dogecoin crashing over

the weekend. "squawk on the street" will be right back. what is it, man? >> i keep you 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 say that, man. it's a hustle. >> to the moon usic: “you're th” joe esposito] [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today. don't get mad. t-mobile is the leader in 5g. we also believe in putting people first by treating them right. so we're upping the benefits without upping the price. introducing magenta max. now with unlimited premium data that can't slow down

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what are cryptocurrencies. >> they're a type of digital money, but instead of being controlled by a central government, they're decentralized using block chain technology and lately prices have been soaring for ethereum, and especially dogecoin. >> that's elon musk on snl talking crypto prices. doge did learn a third of his price after musk called it a hustle on weekend update spacex announces it will launch a mission funded by dogecoin, and joining us to discuss the swings, slow ventures. >> welcome. >> i feel like i'm being set up here after you just showed that clip where's my bow tie and glasses. >> yes, there's been some emotional swings because of these cultural moments that we're witnessing i wonder, do you think is musk trying to cover all the bases? i mean, which one is the real musk when it comes to at least how he -- how we think he

perceives doge >> it's a great question it's important to bear in mind, he himself has pointed out many times, dogecoin was created at a joke bitcoin was created as a revolution i think having watched the show, i think that what he's trying to point out is that while dogedogecoin was created as a joke, it can be used as a joke to undermine the u.s. dollar, to undermine the fiat currency system i think that's what he's trying to get out with his implication that ucurrencies can be based on whatever you want, whatever he wants. >> so wyou do think there is soe method to what some would call madness or coming out with apparently diametrically opposed viewpoints within 24 hours of each other. >> i do think there's a method to the madness i don't think he's taking himself or the yolk that

seriously but i think what it raises is the question of whether or not that's problematic, when you have someone in his position with a huge following of this sort of rabid fan base putting money into things because he's tweeting about them. and so i think it does raise that question, and i think that if he, in fact, is not taking himself or the joke that seriously, that's what's worth asking here. he's not out here disclosing his own trades on the coin, and so, you know, we should be maybe asking whether or not that's o okay >> i wonder if you think he is interested in seeing institutional acceptance accelerate or continue and if so, if he wants to see the big boys play in this space to lend legitimacy, how does treating it or how does acknowledging the joke help? >> yeah, it's a great question i mean, spacex itself, obviously his own companies are getting

involved in the game but i do think that he continues to treat it as a game. i'm not sure that he is -- that he has enough method to the madness to be trying to attract in other institutions and other investors of that nature i see him more of the class of sort of investment influencer, almost of the sort that we see now on reddit and you tube, and tiktok, talking about stocks and cryptocurrencies i think that elon musk is not that different from that class of character, as opposed to the sort of crypto evangelists who are out there really trying to get institutional asset managers and the banks involved. >> to what degree do you think, though, that the specifics of dogecou dogecoin and how it's being marketed and the fact that it started as a bit of a joke, and the fact that people involved in

dogecoin, what's underlying, what are the intermediaries doing, and what are the safeguards, how do you integrate that into your view of what happens with all of crypto in terms of scrutiny and regulation >> if you follow the doge county community to the extent that there is one, i think you will see that there are layers to what they're saying, and again, what the game and what the joke is where for crypto outsiders looking at doge county relative to bitcoin, they see it as this thing that demonstrates, there aren't controls, this is on thin air, we have built castles in the sky with cryptocurrency, this isn't based on very much. as you look at it as a crypto insider, a lot of what the community is saying is all of that is true of the fiat currency system, not just cryptocurrency. >> right it's going to be interesting to

see. i see the ratings are in, and third highest rating of the season there's a whole new audience that got exposed and, we have to see how it develops in terms of how they think about it too. thank you very much, good to see you. >> it will be interesting. thank you. as we head to a break. draft kings under pressure today after seeing its price target cut at morgan stanley, and needham, both reiterated buy ratings on the stock a failed drug test cast out the kentucky derby winner, making disgruntled sports betters we'll be keeping an eye on that as well. more ahead stay with us

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now for our etf spotlight, smh under pressure this morning with single digit gains year to date watching intel getting downgraded saying the ibm 2.0 strategy won't provide an answer to market share losses to amd, and there's competition regulators in the u.k. starting

a formal inquiry into the proposed acquisition of intel's flash memory and solid state hard drive businesses by south korea's sk hinux down 2% this morning. the ceo of marriott is going to join us, a first on cnbc, this after the company did exceed analyst expectations. you can see the stock under a bit of pressure. we're back in two minutes. folks the world's first fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer to help make the world a smarter place does this come in blue? become an agent of innovation with invesco qqq

solomon, and here is your cnbc covid update at this hour. in india, calls for a nationwide lock down are growing, as crowds

continue to gather at vaccination centers, as the coronavirus wreaks havoc on the country. the u.s. health ministry reporting 366,000 new infections, and over 3,700 deaths, close to its highest levels u.k. prime minister, the government will push ahead with lifting lock downs, as the u.k. lowers the covid-19 alert level from 4 to 3. yesterday was the busiest day for air travel in the u.s. since the start of the pandemic. more than 1.7 million people were screened at tsa check points on sunday and in barcelona, police disbursed hundreds of maskless people celebrating the end of a six-month long covid curfew. spain has been one of the worst hit nations. vaccinations are progressing you are now up to date, carl i'll send it back to you. >> rahel, thanks, we'll see you in a little bit. we're an hour into the trading session this monday. take a look at the biggest gainers on the s&p, a lot are

related to the reopening of the economy or materials and experiences. you see nucor in there, as the steel index is near a ten-year high live nation, losing side, semi and techs under armour leading some of the s&p to the downside. david. >> speaking of reopening, let's get to our seema mody, along with the ceo of marriott >> thank you fresh off the earnings call, tony capuano, ceo of marriott. in march you saw the largest month over month increase in global occupancy, but it's still highly confined to beach resort, vacation destinations. talk us through when you see demand returning for urban cities where you have a large percentage of your hotels. when does demand for those cities return? i know that's where you're relying on business travel >> thanks, seema we're actually seeing really strong recovery of demand in a variety of our largest markets

and it's not just leisure demand, which is the thing that's encouraging for us. if you look at our march numbers across mainland china, we actually were well above pre-pandemic levels of demand, and not just in leisure. in fact, business demand in china was 5% ahead of where it was in march of 2019 >> so what i'm hearing from you is that as you see demand coming back, i guess the question is how big of an issue labor, staffing shortages will be for marriott wage inflation was a big topic on the earnings call walk us through your concerns there, and whether that could impact this recovery story that the hotel industry is preparing for. >> here in the u.s. in a few leisure markets where we have seen a rapid return in demand, florida, texas, arizona, as examples, we are having a bit of challenge staffing our hotels. we're putting some one-time incentives in place.

we're running job fairs. we want to make sure we can accommodate every guest that's returning back to our hotels >> you know, one of the ways you were able to cut costs last year was to get rid of the breakfast buffet, the dining, cleaning services, are you looking to bring those services back, tony to your motels, and if so could this shortage in labor hurt your ability to do so >> our service model is really driven by the wants and needs of our customers. what we have seen over the last 15 months, they really treasured contactless experiences. so that meant reduced house keeping services, the ability to check in, use mobile key, using the marriott app, i think as demand comes back, as the general populous is higher and higher percentage vaccinated, we'll start to see a slow return of some of those services and amenities.

>> tony, i would love to come back to the business travel question, i guess. clearly we're going to see an increase in business travel. there continues to be this larger question of whether we'll ever return to 2019 levels, given that behaviors have changed to some extent what are your expectations >> it's a fascinating question i think on the plus side, the continued distribution of vaccines and more and more companies returning to the office, i'm heere at our headquarters in bethesda today, there's probably more cars here today than i have seen since the start of the pandemic, and i don't think we're alone. i think you're seeing that across the country so we do think you'll see a steady return of business. the thing that will be interesting to watch, i think it's going to be less clear what the trip purpose is. increasingly we're seeing folks that say, i can blend trip purpose. i can combine leisure with business travel, and we think that's really good news for our hotels across the country. >> and what is your approach,

actually you mentioned, you know, more cars in your parking lot are you bringing people back to the corporate offices in mass at this point or is it going to be more of this hybrid approach that we hear about so often from executives >> i think it will be a bit of both we've got the building fully open for folks that have dedicated offices, and we are in the midst of transitioning to a hoteling approach for the balance of our workstations. but i think through the course of the summer, you'll see a pretty steady increase in the number of associates we have here in the building >> until we get there, the vacation rental boom, tony, that we're seeing, when you talk to expedia or airbnb, the preference for home, how is that helping, and are you rethinking the types of hotels you'll bring to markets in the coming years, new brands that perhaps bring the home experience to customers at your hotel? >> see ma, as you know, when we launched homes and villa, it was a compliment to our hotel

portfolio. the notion that for very specific rip purposes, our guests might need a whole home experience we have seen explosive growth. i think at the end of the quart er, we had about 30,000 listings, and they are all full homes, and we think the combination of the quality assurance that we provide, the service that we provide, and the linkage to our loyalty program really positions homes and villas for the future. >> there is a supply issue there, tony, whether you speak to the ceo of expedia or airbnb, they're using these market strategies to recruit homeowners are you losing some of your homeowners to airbnb and expedia as they roll out those sort of campaigns. >> well, we don't really contract with individual homeowners we have used management companies, and we bring portfolios of homes into the system, and so we're actually seeing very rapid growth in our inventory. >> tony, i hope you won't mind

fielding a question just on cyber security, and cyber risk after this pipeline episode over the weekend. not to give away too much, but i just wonder, what are conversations surrounding c suite peers of yours sounding like at this point has this changed the mindset even on the margin >> i think the mindset was already there. i think i'm lucky enough to sit on the business round table. this is a consistent topic of conversation, and i think if anything, this simply reinforces that we've got to be vigilant about cyber security >> tony, as we talk about international travel, tell us about booking trends the minute that europe said fully vaccinated americans can start traveling to certain countries in europe, did you see an impact on realtime bookings, or do you think it will be some time before americans feel comfortable traveling abroad.

>> one of the agreed things about our model is we can monitor realtime data. we saw immediate spikes in call volume i think we started to get call volume speck as soon as the eu commissioner talked about opening to u.s. tourists and, then when we saw grease open, we saw an almost immediate increase of volume for inquiries for our portfolio. we think that will continue through the summer. >> that reinstates your construction pipeline which stands at 2,800 new hotels at the end of this quarter. tony, thanks for joining us today, good perspective on where we're headed in the hospitality market tony capuano, ceo of marriott. the largest fuel line remains closed due to a ransom ware attack. pip pa stevens is here crude down a bit, but gasoline futures a little bit higher. talk about how this plays through the supply and demand

and ultimately into consumer prices >> yeah, mike, actually gas users are now just turning negative here suggesting that traders believe this will be more of a short-term impact. colonial pipeline said last night that several of its channels are now back up and running but that the majority of its system is still offline following that ransomware attack on friday. this is a crucial artery for the united states petroleum industry it transports about 45% of the east coast's fuel, refined gasoline, jet fuel and spans more than 5,000 miles, so taking this off lline really shows that energy infrastructure is a key priority here, making sure our systems don't fall victim to cyberware attacks. circling back on the price front, action right now suggesting that really traders believe they will be back up and running in the very near future and it won't have any type of longer term impact here.

>> near future, i would imagine, meaning within days. i think there were a lot of scen scenario analyses going on about what impacts could look like in the region >> exactly so a lot of the fuel that's transported ends up in storage tanks which is later distributed for use, and so what traders say is that the levels there were pretty solid heading into this ransomware attack on friday. demand is lower amid the pandemic so there's no immediate imminent fear that supplies could be completely decimated and then we would see larger price speikes you know, if it's offline for several more days, that could start translating into consumers feeling that at the pump, the price impact will be different based on where you are while prices could rise in the northeast, they will see decline

a ibtlittle bit because there w be more fuel flowing through those areas. depending on what happens in the next few days, we are expecting to hear from the company today the last time we heard from them was last night, when they didn't give any sort of time line as to when their system would be fully operational once again watching the market here to see how traders are assessing the supply and demand dynamic right now. >> presumably, once they are back up and running and at least they have things operational, that doesn't mean their systems are now protected from something like this in the future instantly. i'm wondering what the nature of the incursion was and what they can do about it in such a short period of time. >> we don't have any information around that right now. colonial pipeline, it's privately held so there isn't the push from the public in order to see what exactly is going on president biden was briefed on the matter on saturday a number of federal agencies involved here. the prime minister of transportation declared a state emergency last night in 17

states and d.c it really just shows we don't know what happened we don't know if the attack exposed the valves that turn on and off production or if it was just the i.t. systems. we don't have insight as to how perv pervasive this attack was. no doubt the government will be turning a stricter eye to the threats of our energy infrastructure, and making sure that everything is safely back up and running. >> for sure, and we'll look forward to seeing what the company has to say later on. pippa, thank you very much as we go to break, take a look at some of the biggest dow gainers. chevron, i think was at the top not too long ago, but has since been replaced by 3m, boeing, p and g, and verz. we did get a record high on the dough. stay with us izon we did get a record high on the dough. stay with us

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over the weekend, the cochair of facebook's oversight board, michael mcconnell defended the board's decision to uphold former president trump's ban on the platform but also called for more transparency from the company take a listen. >> their rules a shambles, they are not transparent, they are unclear, internall inconsistent, we made a series of recommendations about how to make their rules clearer and more consistent and the hope is that they will use the next few months to do that and then when they come back and look at this they'll be able to apply those rules in a straightforward way. >> david, for those who doubted that the board had virtual autonomy, the way they have attacked the company's policies and their methods of enforcement has certainly dissuaded any from thinking they were in the pocket of zuckerberg or management. >> no doubt.

yeah, and that was a criticism perhaps going into the decision, carl, but as you point out, no longer really the case they clearly have shown that they do have independence but the question remains, mike, what will facebook's actual board and really one guy, mr. zuckerberg, truly decide to do, whether it is with former president trump's account or broadly speaking, addressing some of those criticisms. >> the idea that facebook should codify this, and i mean, it doesn't seem that different from what facebook has been asking for. they just have to do it internally, and make sure that, you know, they have the systems in place, spexpensive as they a, to monitor these things and where you would draw the lines and what it would mean for user growth and engagement over time. also it's coming at the same time, people are concerned about the apple opt out of ad targeting and the stock itself is right back to where it was before it had those blow out earnings just a week and a half ago and it gave up that entire premium and trades right in line with the market. there's no premium valuation of

facebook, which is a massive change in history. >> it's getting pressure today, not because of this, but because of the downgraded city where they talk about seeing little evidence that ad spend per dollar of economic activity, the intensity of that is his rising. they say at least in their estimation, that's not the case. given they see little evidence of that, they downgrade the stock. >> they've got a 320 target over it city, and they do talk about deceleration beginning either q3 of this year or q2 of 2022 we'll take a break here, guys, there's a lot more to get to take a look at some of the nasdaq 100 laggards. tech check is coming up in a few moments. we'll talk to cara kara swisherl debut at the top of the hour

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the white house says it's proposed tax hikes are aimed at restoring fairness to the tax code what the 1% actually pays. >> reporter: good morning, mike. president biden saying one of his goals in the new tax plan, create a system where wealthy investor no longer play marginal rates lower than they are secretary. the wealthy pay by far the highest rates and the largest share of taxes the top 1% paid 40.1% of all federal income taxes in 2018 2 the highest share on record and more than twice the share that they paid in the 1980s their effective tax rate, what people pay when you include the credits and all deductions, over 25%. compared to the middle class paid average rate 7% bottom half of americans paid only 3%. so the top 1% paid an effective

rate more than three times higher than the middle class the average 1%-er had income of $1.7 million a year and paid federal income taxes of $427,000. now, many would say, look, the wealthy pay a higher share of taxes, because they earn more of the nation's income, but -- the top 1% share of total income actually fell in 2018 to 20.9% those 2017 tax cuts did lower taxes paid by the wealthy, but the rest of america also got a tax cut. so their overall share of taxes paid by the 1% grew. analysts say main reason, salt. high taxed states. >> yes yes, yes, yes. thank you, robert. >> yes. meantime, our lesley vicar is looking at shareholders rejected plans of some major

companies for ceos. >> reporter: right david, investor opposing ceo pay in leveling we haven't seen in years. this happened at companies such as ge, at&t, starbucks and ibm and dozens more on the chopping block with annual meetings taking place over the next few weeks. now, according to a report, 18 company hs say on paper proposals rejected so far this year at a rate of 3.5% more than twice the average rejection rate over the prior four years which was 1.6%. now, according to equalr, they found sharpholders support for compensation is at the lowest level in the decade with average of just 87.6% of votes in favor of pay packages. a proxy solicitor told me investors have become much more likely to express their opinions now than they have in years' past many asset managers made assertions during the pandemic

about environmental social and governance issues, and now are expected to vote in a way that reflects toes views. a report from blackrock just last week showed the $9 trillion asset manager taken a more aggressive posture voting against company directors and shareholder resolutionses. blackrock, for example, voted against ge executives pay packages a more oppositional investor baymay have larger implications about the overall incentive of participants and that a company is vulnerable. say on pay votes specifically are non-binding, meaning a company does not have to change their plans but most advisers say it's probably a good idea to show a good-faith effort to make some tweaks. guys >> on that, do we have data that shows the response of companies when they do get a non-binding resolution in terms of reducing pay? do they actually follow through? >> that is a very good question.

i don't have that data handy, but i will reach out to some comp firms to see what the response is. i did speak anecdotally to advisers who says unless they have a really, really good reason for keeping pay where it is, they should go around and talk with specific shareholders and talk with certain compensation experts and try and find a way to get a middle ground of some sort of resolution to make everybody happy, if that's the outcome that they do see >> and are the shareholders objecting to the absolute numbers? the actual pay packages in size? or is it how they're calculated in trying to get a little more accountability on that front >> reporter: they're just rejecting in size. the vote is for or against or abstain. we don't have many details in terms why exactly they are rejecting specific pay packages. whether it's size. typically it has to do, though,

with how tight it is to performance and whether or not they believe that there is enough of an incentive for these executives to boost the stock price, guys. >> thank you. lesley picker. with the markets moving in some different degrees with the nasdaq down 1.6% and broader market up that will do it for us on "squawk on the street." time to send it over now to "techcheck." happy monday welcome to "techcheck. i'm jon fortt with carl quintanilla and deirdre bosa ahead this hour, the dow hetits record high. nasdaq back on display more on that plus, elon musk and the dogecoin dropped. kara swisher can weigh in on the