good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber red cross asia and europe and now here at home more talk of inflation china ppi up 68 runs hot tesla tumbles about 7%. >> plus the woodstocks tumble.

cathie wood's ark etf hitting a new low. and pipeline pressures with much of the colonial pipeline on the east coast still shut down, prices of the pump are nearing $3 a gallon. that would be the highest since 2014. >> yeah. we're going talk about gas demand, especially on the east coast. the open is the focus of discussion this morning. friday we got the jobs number. we got the brief respite for tech and you said it would be short-lived and it has been. >> these stocks are -- i don't want to say they are all poison, but they are so sensitive. yesterday the city downgraded couple of advertise related faang names was incredible didn't hold up under close scrutiny versus trade disney this morning whisper numbers, substantially

higher that's a woodst stock the great closing trade is going on we have the opening trade. how about the closing trade. well it's closing and it's closing quick. >> does it close out and give -- >> no i like tj, no it is a close, like a coffin >> that's terrible. >> okay. it is a close like a closed book, okay >> all right so -- >> where are those names from? holy cow sorry, wood stock. lot of those companies great shoppy, roku, spotify, but the prices -- >> -- still up enormously on a

12 month basis which is down from highs. >> right. >> fairly substantially. but do you buy them here do you buy zoom down 30 percent? do you buy spotify >> no. >> coinbase not that bad. >> coinbase is good. >> but again since its debut. >> so they are in a rut. >> they are in a rut i would buy tesla here i had a piece last night about why tesla has always been up from -- substantially from right before memorial day till ten days after >> why >> i just look at the seasonality. i let history and puricism control my thinking. versus your analytics which i

find shoddy. carl, my point is this, these are very good companies, well some of them have a lot of competition, like teledot. but they are very -- i happen to think that twilly. twilio, it is a great company but i'm not going say you have to sell it because it is awful bean therapeutics. i like jim beam. i look at some of these and they are too high and i look at others and i have no idea what they really do. and that's okay because we have five years to find out but i cannot cut and run from twilio i can't. it is good it's down substantially. it had a great quarter so there is a level you can think about twilio let me throw one at you. it's a good company. it's got good exposure to 5g

big worldwide presence, some pcs but not that relevant. >> tell me. >> called apple. >> oh i think i've heard of it. >> and that's in free fall. >> apple is down 4.4% for the year is that really free fall. >> if we're going to do wood stock, we're going to go free fallin'. >> tom petty. >> tom petty's great. >> yeah. 4.4% is not free fall. i know he's in there somewhere. >> he's on the left. >> is that country jim and the fish >> oh, look at that. there it is. >> before david just takes everything down. these stocks are down substantially. they are not spacs i have no idea how to -- the spacs i don't know >> huge spac deal studio harry sloane coming back with a

huge deal. we'll look more closely at that and see how his soaring eagle spac performance still below 10 to your point many of the spacs have fallen dramatically >> spacs have cost people fortunes people only have so much money to lose. >> okay. but is this a bottom >> the highest quality stocks will stop going down today but yesterday was an amazing day. >> classic growth stocks held up the whole day. even when the dow turned down, the classic growth stocks held up but you had to go buy pepsico. and a person who is buying medicine and software and skills and ten x gen mas, that person is not buying pepsico. that's not a wood stock. >> it's not? >> it's not even a burning man.

>> well, speaking about how much more downside there could be we're going talk to tom lee later this morning of fun strap. his argument maybe down a little more the 200 day and what might happen, a crash up in cyclicals as we get more and more evidence about the reopening. especially in june blackstone from june 7th the nationals and washington, d.c. going to full capacity june 11th do you think that this is going to continue to be a fly wheel as we get more reopening? >> i think the opening trade still remains terrific i think the alcoas still are good the freeports oddly are still good the commodity costs for say car companies are going to be gigantic i happen to think that you can keep going back to these stocks. until younger investors have

gotten comfortable with them and then rethink the situation walt disney's numbers are going to be fantastic. proctors -- >> meanwhile jim, druckenmiller this morning on squawk talking about the fed asking where they are going through so much effort for 40 points of inflation -- can run an economy hot where no inflation he's going take that chance again. >> i love stan i've known him like 30 years not the usual he's a nice guy. i really like him. >> so most of the time when you say you don't mean it. >> this is not hyper bull. but stan at the end. he said when you have this bubble the person who is hurt is the person at the bottom of the rung and what i this that pal is trying to get us to do is get us back to where we were in terms of unemployment.

and then when we get there, he can tighten. i think that this morning, joe biden, president biden said that he's urging people to go to work who have unemployment benefits i can tell you every day people come to our place and they say they want to work and when you offer them a job they turn it down but they then they get the benefits it is the benefits but i want people to make more money because the fat cats have made too much money. >> not necessarily willing to pay them $22 an hour because you can't pass all of that along to your customers. >> like i can't pay door dash 30% because i'll lose too much money. i always lose money on anything they send it small business stuff >> people are, it is not because there is also this theme that people who have had a career in hospitality restaurants are rethinking that to some extent >> absolutely. >> france there have been report on how difficult it is in france, for example, to get workers not because they are

making more money at home but because they are rethinking sort of the way they have pursued careers in the past and obviously important history there as well. burr that is not going on. you are saying people just showing up, it is not enough >> yes and then they get their unemployment benefits. >> every day we've had this conversation about inflation and you continue to back. >> i back j pal because i don't want the worker -- i disagree with stan. stan's done more to help the poor than anyone i've ever met and i hate to say the term the poor but people less well off and he and i disagree about how to help. i think ja pal is going about it right. i think there is a lot of different. semi conductor shortage. that as real shortage we solved. it is getting solved. >> -- parcel of the overall inflation. >> right now we have the

gasoline colonial super storm. tyson food lot of that because of covid will lumber come down in price if j pal says i've had it. >> no it won't. >> no. so what's the point? can we let people make more must be who haven't made lot of money and take away some of the money that really rich people make >> are we going to do that by actually giving these people jobs or having them stay at home those benefits will run out. >> yes, i'm on j pal's side because i think j pal is on the workers's side not the spartacus workers are united workers own the manufacturing. no i just think he's doing a good job. he's got a different way to do it >> yeah. well we do have several states doubt cutting back on the supplemental arkansas on the list south carolina, alabama yesterday, jim as you said benefits run out in ber.

i guess you kind of have to imagine that those who are in fact remaining on the couch because of the supplemental have to be thinking ahead that this is going to run out. and sooner or later i'm going to have to start getting busy. >> i think they should we're giving'em three dollars ab hour more than they made 18 months ago and more benefits than a restaurant can give i would lock the stuff in. i think this is good trade for them dave, id it's good trade i can't offer 22 bucks, which is equivalent of unemployment. >> you may want to get on board and start working again. you will see wage prices come down and pipeline will be fixed and they opened the japanese plant. big fire that's back. i don't know what turns lumber around and then we'll say why did j pal raise rates? >> i saw australia is having

budget forecasts assuming a sharp turn around on iron other way back down from the highs and then you get an upgrade of x this morning on the prospect of remaining above thousand dollars a ton through q4 at least. >> we've shot so many hot roll plants we're not allowing china to dump their steel in our --. those prices are going higher and that is because there is a scarcity if you raised rates then the sales will slow and car prices will come down j . pow.

>> you take a look at the ten year what's that saying not too much. >> not speaking to me. >> not speaking to anybody and yet it is enough to arrest many of the growth stocks >> they are being arrested. >> they are being arrested >> not only are they going down but they are being jailed? >> arrested -- >> -- is there due process carl? the prosecution rests, they're going to jail. >> there is no due process in the market >> the wood is rotting and everybody's got their jokes. >> send'em to jail >> you are joking around about these and people own these they own quantum scape because of you. >> oh my gosh, here we go again with that.

>> down -- >> -- first interview we did with us carl and every other single interview has been with jim but somehow it's mine. >> is there a better battery there are bert ones out there. >> there are lot of questions and focus on gm's efforts and what they are going to be able to accomplish with battery technology. >> interesting with wood stock, when she came on she basically said you can't brake you can go ahead and try but i'm an etf you can't brake. >> which is great. why not. none of us were there. man look at that that was fun though wasn't it? >> yeah. >> what were they on all sort of stuff. >> yeah i heard hendrix --

>> i bet >> carl we can't make light of it in the sense there is a lot of i people in the wrong stocks. most important thing there are lot of younger people in the wrong stocks and taking the attitude we often heard from 2000, don't worry, they come back and lot of them didn't come back only a hand fortunately stayed alive in 1999. lot of people kept those stocks because they said they will come back it is not like children in the mall. >> it was trading in multiples to revenues that never showed up, carl. >> space is a good example of what you are talking about, jim. market cap in february was 15 billion. now less than 4 billion. of course last night talking about seeing some signs of fatigue and stress in the airplane that carries the craft. new ceo, new cfo, new head of

engineering in the past 12 months some pieces argue that branson is really losing out on the race to space to bezos and musk and it is going to open down big this morning. >> i agree with that horrible conference call there is a moment in the call where he says we need to have just a nice complete flight that goes to space. and we gather all the data around that and as well as kind of some of the data that happens in the cabin itself. it is there. that's there david, there is some very incoherent way of saying we can't get this thing off the ground cancel the february trial there. you know i -- >> -- made his money -- he -- >> -- get the confidence i -- i didn't feel like i want to book a trip i'd rather get there by car. >> tesla is going to launch you in, right? >> that's a spac.

>> yeah. >> no i mean this call -- >> let's go launch you. >> this conference call. this conference call was like, i kept waiting for like some comedian to appear at the end to say that, look, this is just -- don't worry, it is just theater. >> well, that is a company of course that will originally started life through a spac. obviously it is no longer. despac quite some time ago carl. mentioned the giant one starting to get approved again by the sec. but it is as so many parts of the market where there's been a lot of speculation, kind of ugly. >> if i were space, i would change my name to spice and go up against mccormack add an a and take an a out. >> coinbase, upgrade of nike, tyson and some others, as futures are weak

for the second straight day here after tough day for the nasdaq on monday. we're back in a minute

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at indeed.com/home. you got any other complaints you can put'em in a box somewhere over there. >> those shoes are ridiculous but then again i haven't shined my shoes since -- >> you come at me about shoes? oh my god. nobody would let you leave house with shoes like that >> -- >> that's embarrassing for a mini a of your stature all right. at least when it comes to sitting on your wallet

let's talk about simon property though >> just bummed me out. okay simon property should not be down six but it is up a little david simon. jovial. >> not. >> -- improving environment. shopper traffic increased. sales up higher volumes than march. and than in 2019. >> amazing >> that the fabled 2019. pre everything rent's up 60 bips. restaurants -- doing well. he sites crocs, american eagle, urban outfitters doing and jc penney going to work >> going work? >> he has to spend a lot of money to bring it into the century but he's one impressive guy. >> viewers, maybe for years the

three of us talked about the death of the mall and now what it is not -- >> -- >> -- have to distinguish between sort of those a malls that have been able to maintain and a lot of the others. >> and what you need is look at the real estate investment trusts that are trading at ridiculously low prices. those are ones that do not have a malls. and david bought talbot. that was almost all a malls. paid a little too much and got it adjusted. >> speaking of deals that did happen i do want to talk about l brands just a few minutes away, oemg bell pening bell

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jaip craftsmanship cap . pow crae . we're keeping our eye on the effects from the colonial pipeline hack which the president says he'll discuss with vladimir putin. in the in the meantime, gas demand monday soared and now the epa is issuing fuel waivers to make it easier to get

some reformulated gasoline. >> the ships are coming around looks like the market will avoid significant disruption as long as the pipe starts back up this weekend. service stations around and gas for few days but that will just be good fodder from local news not anything to worry about. rusty's been right about every pipe outage in decades it is going to be a work around. that is why prices aren't so bad. that's why valero could be down so much. aren't they supposed to be making huge? >> yeah. >> but it is not >> we got to get to carl with the opening bell. >> sorry. >> all right >> quick look at the -- nyse and nasdaq the national average gas buddy says 2.97 doct$2.97 is the highe

2019 how do you sustain economic growth >> so far, this market is made up of the stocks of a lot of strong companies the new york stock exchange. the nasa has got some real weakness and lot of companies have pricing power. now we may not want to pay it but others will. and i think when i look at a dow chemical downgraded today by goldman basically saying listen its going too far. i can make that case i can also see so many of the big technology companies have gone too far low i can make that case but it's perilous to make it at this very moment and i understand carl there's not been demand destruction yet. and you can tell that because they are still building and selling houses and houses are at the fulcrum. and selling used cars, through sometimes new cars and the demand is there because

what j. pow i think knows that most people don't is that the pandemic caused a lot of this. and the pandemic is ending and that is going to cause people to rethink moving to the country. i think that there is going to be a fundamental shift in what people have been doing and they are going to come back to the office and it is going to lower prices, not raise prices >> you may be right. that is starting although still slowly slowly starting. the return to the office, for example, is still not in force yet but we expect next month. >> -- guidance but a demanding dr. gottleib comes on the network and felt he's a common sense man lesmt win. his logic will win we'll come back and the opening trade is better than the closing trade, carl. >> there is no doubt about that. even as we're talking, i think the seven day average for covid cases, guys is below 40 k.

yeah 38,000 on a seven day average. we haven't seen that jim for eight months >> no. and it is coming back. you read in the marriott conference call. that wasn't bad. i mean, the stock got a hit. >> hit a bit -- and -- straightforward. >> sure. -- pretty positive. >> yeah. >> -- bookings that he looks at. >> -- program. >> -- excuse me? >> well programmed many of the ceos that come on. yes. >> ceos of l brands and gingko well programmed? >> glad you mentioned, l brands. i want to spend a little time on it such an interesting story in terms of what we've gone through the past year. the news this morning is it is going to split into bath and body works and victoria secret and they announced that this morning.

the board of directors unanimously approving that plan to separate into two companies if it sounds familiar, well because they had a plan do this over a year ago with sycamore large private equity fund buying the victoria's secret part and them being able to to get out of the deal without any penalty whatsoever mutual termination what's happened here in the last year nothing short of remarkable if you are l brandt shareholder you are thankful every day they did not do that deal sycamore backed out.

and if you are sycamore you are sick to your stomach probably every day. >> they are rich david and lanning said if the rich are unhappy it is their own fault. >> probably is they were coming off fourth quarter of 2019 where full-year operating income for the company was 258 million. so things were not going well at l brands and then fast forward the past year they have within off the charts victoria's secret just this last quarter is indicated to be somewhere around $245 million. in operating income. and the fourth quarter was much stronger than that put a number on it what should the multiple be for victoria's secret on operating income, jim? what's ab appropriate multiple it's retailer. eight, nine? >> -- in decline, this is the first -- >> i know. but bath and body works has been

extremely strong too. >> 12. >> all right but on the other one >> i don't know, eight. >> okay. eighth what are they going to do this year, victoria's secret. they did 245 in the -- >> -- possible, it was doing so badly. what do people -- what happened? >> people started to buy more stuff. what can i tell you? >> more lingerie how does that have to do with the closing and opening? >> add a lot -- >> -- pandemic, let's get lingerie. >> we know the bath and body works part -- yeah i'm just checking my numbers 245 million of victoria's secret for this quarter again so my point is, sycamore, what they lost out on, being able to buy 55 percent of this company for $525 million, it has now a $19 billion market value overall. and victoria's secret alone has got to be valued at eight, nine, i don't know what the billion dollar number is in one year they would have had

one of the greatest investments of all time. >> matthew boss came out where they were buying j.p. morgan and said you got to buy l brands and i was like are you kidding me >> and shareholders are very happy that was terminated. business taking off like a rocket ship. >> not a lot of stocks that are up right now. >> no there aren't t-mobile is up. >> it's early. >> okay. what you think it could turn today? >> yeah. >> bottom? >> i think we could. roblox is a company i have on tonight. it is doing incredibly well and it is up i think that's one that would turn it was amazing call. roblox a real company >> is that a direct listing?

it was, wasn't it? >> palantir speaking of -- >> are you one of them ten million degenerates? >> i'm not. >> would you ever want to be called a degenerate? -- palantir did not do the whisper. >> no but it is flat on session as looking as it was going to be down sharply. >> did huge revenue growth had adjusts free crash floe. i don't know how you adjust free cash flow. 49% revenue growth and they are going make a stand 32 million shares traded amc. the democracy, which you can call ate the democracy, made a stand. robinhood. the democracy. made a stand on amc. and in pounds here, david. and you know what else they are

going make a stand on? gamestop i'm going unveil tonight i think the actual plan. >> again. >> you are going to hit us with the plan again >> is it your plan or his plan. >> it is the one ryan is going to the top and he's going to never give me an ounce of credit not anything not a statue, not a plaque nothing. carl back to you >> you can't just do that when you are done "carl back to you." i'm listening to you guys jim. strength in retail we heard about the property call i did notice the upgrade of nike today. as jeffries goes to buy 192. >> 192 -- >> -- stock. -- demand. >> i am nervous about nike because all they have to do is read the front page and realize that there are articles about

certain minorities that are just where we should be shocked and gassed about what the people's republic of china is doing david have you read that he has articles >> you got to be more specific. >> make it so women can't have babies who are -- >> it was a devastating article in the new yorker a few weeks ago about the campaign to -- >> -- the question is. >> sure. against uyghurs. >> can john don ho just not say anything >> i don't know. john donaho, of course the ceo of nike. >> i would be torn one of the reasons we cut the position i'm betting that the people of conscious on the board say listen, we cannot. we want to registerer a protest

to this. and stan druckenmiller -- taiwan didn't get enough time to talk about it but we've got taiwan semi trying to please everyone please everyone means they have to please the people's republic of china the article in the "new york times" it was excellent about ev peoples republic of china wanted to beat us taiwan semi a stock that you should buy they could bottom. make enough chips. they have been able to expand the number of chips. >> they have they have been able to expand. >> yes they will give you 60% of the chips that the oil companies need, they will provide. so the auto company's going to come back. and i would buy gm and ford. >> we did get news yesterday out of ford about the lightning, the all electric f 150 i guess we're going to get a look at that on may 19th it was probably not a coincide

that music took the opportunity to go on snl because the marketing wars are definitely going to heat up with some of these new product introductions. tesla today gets below 600 for the first time in, since early march. almost to the 200 day, jim which has not touched since march of last year. >> well it is rather extraordinary. the competition is big i happen to think tesla is a great company. but ford is going to launch the f-150 electric vehicle on the 19th as you mentioned the president looks like he's going to come. and i think this is a big deal i think the ford f-150 being electric is a huge deal. one of the reason i want to own ford. >> and we do an enormous back deal at $15 billion bioteching back deal. gingko bio works being done by soaring eagle. ing this when you look at soaring eagle. this is below 10 spac from harry sloane of draftkings fame. that was the story of spacland

to a certain extent. there's been significant slowdown in issuance as we all know in part because the sec scrutiny particularly as it relates to pipe investments, projections and warranties in particular for some of the companies that are redundant to reaccount for certain things but it is starting up again a little bit and this is a big deal the company by the way researches -- programming to the applied antibody therapeutics, vaccine production other areas too, creating plastics that can bio degrade. pipe 775 million bucks 2 1/2 billion will go in gross proceeds to the company. as the very large deal we'll watch it closely given -- >> which eagle is it >> it's soaring. >> how about double eagle? do you know double eagle they are selling six million shares of pioneer natural. so there are two eagles going in different directions. >> we are going to be joined by the ceo of gingko bio works in the 10:00 hour

>> good get. >> yeah. thanks. >> well done >> i had nothing to do with it >> all sectors read. not a surprise vix back to 22 1/2 lets get to bob pisani. >> tech's down 1 1/2% but already well off the lows. the rest of the market is not doing that well either lot of stuff down about the same amount energy weak here materials doing a little better. banks were lower and they are off of their lows, industrials down about 1%. people keep wanted to know what's going on with the market and it is pretty simple, folks the sentiment has changed. the markets not generally dominated by fundamentals. it is dominated by sentiment and momentum and so sentiment and momentum has shifted. it is shifted from growth/tech to value, to industrials, to materials. so banks, to the reopening names. speculative tech, the stuff we like to talk about, the teledock and the zoom video and all the cathie wood stuff has been hit hard as rates inched up and

inflation fears. this has been a problem since february the higher rates in inflation kills the speculative names. none of the fundamental investors want to touch that stuff so there is no one to sell to and they go down fundamental investors still support. the numbers are great. the perks e multiples are not very great and they have held up. mega cap tech has held up better than the rest of the market. jim was talking about tesla earlier. i want to point out. tesla was up 700% last year. it is now 30% off its 52-week high but it is still not even at a low for the yearet yet fastly was up 300 percent. 70% off its 52 week high peloton up 400% last year. 50 perfect off recent highs. zoom video there is a lot of companies up more than a 100% last year and they are the ones getting hit the most because they are generally more on the speculative technology side. if you look at thematic techs.

everybody loves investing in the kathy woods arks and the 3-d printing and cloud computing generally thematic tech has taken a 25-30% haircut across the board. cathie wood's more speculative end things but you can see everything is down in the technology area that everybody loved to talk about in 2020. now, big cap tech has held up a lot better than any of this. if you look at the big mega caps from where they were, the 52-week high this is pretty modest declines and the reason is they have more fundamental support. they have more fundamental investors that are behind the long-term people who like the story who like the value associated with the pe multiples are not terribly high on most of these and they are supporting. at the same time there is a huge rotation going on yesterday at the close we were at 52-week highs in many, many sectors of the s&p 500, including industrials, financials,

materials, energy, healthcare. whole bunch of consumer staples as well were at 52 week highs. techs gets hit speculative techs hit hard but the overall market is rotating and the s&p is still very close to 52-week highs. in fact historic highs carl back to you >> bob, thanks very much got to keep your eye on yields as well. rick santelli. >> yields are climbing a bit and all watching stan this morning discussing how in his opinion maybe yields would be even a bit higher. a two kay of 10s if you are a technician out there you really have been all over the markets they move technically pretty accurately the minute we skeet over the 160 yield. another important pivot. you can see we start moving higher and we hat the

capitulation drop. when you look together makes perfect sense woosmter building momentum if we start to trade on the sunny side and close on the sunny side of 161, 162, look for us to make another pass towards what is currently the high yield close at 174 now, there is many reasons why sentiment has changed. i personally think a lot had do with new york fed president dudley, ex fed president, who in my opinion by addressing how janet yellen walked back her original comments on inflation just added to all the dried tinder and sparks flying into the market regarding inflation stan of course spoke about it in great length look at bunds. bund yields at minus 15. this is interesting. as you look at this bund chart starting end of frill, you can see on the left side the minus 16 was a high yield. even though it is negative actually it was the highest

interday yield since covid so we've traded higher than that today. if we close at the high yields today, meek on the north side of minus 16, it is going to be a two year high for bund yields an closing basis. and it doesn't end there we're going to continue to be the reserve currency stan asks that a lot in the discussion with joe curran this morning. but consider this. right now the pound versus the dollar is at a two year high against the greenback. and the greenback continues to drop, albeit, slowly carl, jim, david back tow yosmt. thank you very much. rick santelli. we started with the nasdaq 100 with about four positive co components that's broadened but it is tough day for the nasdaq and the dough.

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less heat. breadth is negative. down 41 points nasdaq opened down about 2.2%. off that initial low as we said. a long day ahead keep it right here "squawk on the street" is back after a break. 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 based on how much smartphone data you use. plus get netflix on us, and taxes and fees included! you won't find this with the other guys. in fact, you'll pay more and get less. right now, pay zero costs to switch! and bring your phone -- we'll pay it off! only at t-mobile.

apple is one of the chief drags on the dow that brings us to stop trading >> look, the traders are saying it's a classic head and shoulders. i get that there's an interesting piece talking about apple's surging apple isp. he says there's no reason to buy it but apple is trading at 23 times fiscal estimate. it's happening >> the multiples are shrinking to levels i think people have to start considering. if that's below market, you have to buy apple you have to buy it anyway -- i like that call >> what do you make of the ongoing theory at arc cathie is selling apple and getting more imbalanced on the liquid said. >> she calls them cash equivalent i'm embarrassed by that. i'm not going to make anymore comments like that it makes people feel like they

own cash we're going to hurt young people, everybody. that's playing with matches when you're seven okay tonight -- >> jim, you have a packed show tonight. >> yes, i have abbott labs i haveroblox affirm, and vivek shah 124, that's not bad. he said i'll just show them. and he showed them, carl i love that. he's one of my heros what a show. we have to go. >> i know. we can't wait to see you tonight. 6:00 p.m., of course, mad money with jim cramer. nasdaq trimmed a percent don't go anywhere.

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good tuesday morning welcome to another hour of squawk on the street morgan brennan is back and david faber. weakness after monday's tough session for tech

off the initial lows, nasdaq was down more than 2% at the open. currently down 7.. let's get to rick santelli >> all right you're going to get a jolt out of jolts job openings and labor turnover surpassed the 7.5 million job openings by through 8 million. 8 , -- 8,123,000 this is huge all the job openings and the debate rages on as to exactly why we're not filling then whether it's skills or benefits or fear of covid, whether it's child care and school issues i can't tell you the percentages of each, but i can tell you for sure it's part of all those. and this number is certainly going to incite people to continue to kick the tires on some of the stimulus positives

whether the fed or uncle sam because there's a lot of potential jobs for people to take morgan, back to you. >> yeah. certainly interesting to see a number like that after the comments this morning on air this morning we're 30 minutes into the trading session. here are the three big movers starting with virgin galactic. down about 7.5% after reporting a loss more than double. the focus, richard branson's space flight company citing the need to analyze wear and tear issues for its mother ship which is what launches the rocket to the edge of space. meantime, palantir, reversing course after starting the morning lower. it is now up 5 % earnings matched revenue beat the company says it expects annual revenue growth of 30 % or more through 2025. and finally, l brands.

deciding to spin off the victoria secret operation. the company will split into two separate public companies. victoria secret and bad and body works. the shares are down almost 3%. >> after an incredible run >> let's get to rick santelli. we are to put it well off the lows this morning. >> yeah. premarket panic sometimes get bought in the morning. still plenty of time left in the day to see how this shakes out but really, i think mostly you can characterize what's been going on for a while as a choppy transition from secular growth tech into other areas. there's a gauge on what the downside has been in march and april and may. down 41.20 is the line that separates routine pullback from something that's potentially deeper we're not deer that.

we're around 4130 at the low last week. for the moment it's contained. the dow versus the nasdaq tells the story. the dow more cyclical gear how much can we get stretched on this front difficult to say it seems like a lot of this has been in training for months at this point a more focussed version is semi conductors against industrials also kwert kwaert to date. semi conductors have given up their leadership role. it's kind of a yellow flag if not a red flag on the rally. so it's sort of an arrhythmia that the market is going through. i would argue, and you're asking 30% of the s&p 500 industrials, financials, parts of consumer discretionary materials and energy to do the work for the rest of the market when you have another 40% tech, communication services and amazon have been heavily for sale i think that's why you have a lot of the unease in the overall market, even as the macro message of the market seems to be pretty good

>> and amazon. i like that. >> yeah. >> speaking of amazon, it's more or less let's call it flat on the session. are there any tells for you when you take a look at this market in terms of trying to understand when at least short-term there may be a bottom for some of the big tech growth names? >> amazon, interestingly yesterday, again went down to just a little bit through, its 200-day average. it's acted awful for the one of the best quarters in terms of top line growth on a massive base i think part of people are saying bezos is leaning on the stock. you see how he's selling it, and what can you do as a followup act to what they've already done all that stuff so i think amazon could be a cue. it's been weak for a while and then in general, semis to see if they get a bid. that seems to be both a risk appetite and a macro indicator >> mike, thanks for that so much to watch on a pretty interesting open as we figured

it would be a little dramatic given the premarket. let's continue the conversation with'den vance management, co-director of growth equity it's a good day to have you. thank you for the time >> good morning, carl. thanks for having me >> i was just looking at a note here from morgan stanley they say that their unprofitable tech basket, and everybody has a version of that, has underperformed spx by 42% over three months if you take out covid last spring, it's the worst stretch in ten years for any thematic basket they looked at over 100. at this point do you think that's getting tired >> i think that the selloff is justified, given the rise that a lot of the stocks exhibited. particularly post the covid initial stages of covid. and given where we are right now, i mean, there's four real

head winds to most areas of tech and namely, the fear of higher rates, tougher comparisons going forward, particularly for those that have benefitted from covid. corporate tax reform which is something that isn't being discussed right now, but it will have an impact on tech more so than other areas of the market and then lastly, for megacap tech, i think we're seeing more and more anti-trust head winds starting to pick up as well. so all of those head winds kind of come together at a time when there's other areas of the market that will benefit from a recovering economy that was neglected by the market for the last few years and now we're seeing a esurgence really no surprise here. >> it does sound like you think there are areas within tech that are buyable on a pullback, and i think you're pointing to semis on that. versus others like payments and cloud where maybe the high valuation means there is a little more downside to come

>> yeah. i think that's exactly right i think the semis are buyable right now. i think the stocks have come in not as much as some of the others but the valuation of the companies are much more attractive for kind of a good entry point in some of the names. i like the analog semis the best they have leverage to a recovery of the industrial economy. areas like payments, ai, the cloud, still great, great long-term secular growth opportunities. but i don't think those names truly bottom out until investors can figure out where are rates going? is this inflationary environment transitory or is it going to be something that's longer lasting? and if it is transitory and rates go to ten-year goes to 2%. 2 % change, those stocks will be close to bottoming out here. but if it's something more difficult than that, then we might have a little more to go before those bottom out.

>> it's morgan just in terms of being able to gauge a bottom or i guess factor in some of the signals that might indicate we're there, is this just a matter of giving time time, when you talk about the possible transitory nature of the situation or are there certain things you're looking for right now >> yeah. i think for us the biggest things on is fundamental basis is we're likely to see a deceleration of growth in names, particularly the ones that benefitted from the covid shutdown and in the growth stock world, nobody likes to see a deceleration, but given that we had kind of a -- where we borrowed some business from the future because of covid, you know, we're going to see that natural decelebration. the market still hasn't come to grips with how much of a deceleration are we going to see? i think once the markets reset, and i think it's coming in the next quarter or two, we'll get a better picture of what is the

long-term sustainable growth rate and once the market is comfortable, the names become investable again >> does that mean for the next couple quarters value is the new momentum play? >> well, i mean, it has been for the last three or four months. right? and again, i think that's -- it's within a neglected area of the market for a long time and money goes where it's treated best right now it's being treated best in those stocks i think -- but at some point it does create an opportunity for long-term investors, and i don't think we're exactly there yet. i think the semis are buyable here for new money, i think there's a little bit more to go in some of these areas that are a little bit growthier and more expensive. >> so does that mean when and if you get new money in, you're going to take the plunge into some names how are you reallocating within the portfolio at this point given the things you're

outlining? >> that's a good point like i said, we're certainly more inclined toward those levered to a rebounding economy. like i said, the semis qualify for that we have a valuation sensitivity to everything we do. we're more of a -- than a momentum style again, we're looking at a lot of areas that have the secular growth characteristics as they come in to attract a crisis, we're buying a little bit here and there, ten, 20 basis points some of these names are down 60%. you know, so a say we're early in the decline, i think would be disin disingenuous i think there's more to go and as you scale in, not a bad strategy for the next few months >> i guess the question would be, if you did get a further downdraft on some of the areas, whether or not it would make

investors even more uncomfortable and crashing into so-called cyclical names or whether there is still a mentality that it brings interest and bargains and there would be a buy the bid mentality. it doesn't sound like you think that's dead. >> i don't i mean, it's hard to gauge where kind of the momentum is or where the retail investor is going to go you know, we've seen a big correction in a lot of these retail favorites, and i feel like that's kind of the point of -- we've got a make a decision on these stocks do we want to stay with them or is it buy the dip? i think retail investors are getting their hands slapped when they try to buy the dip over the last few months. flows are difficult to gauge but at the end of the day, we're looking at the fundamental value of the business and what we think it is relative to what the market is telling us

if we're early, that's okay. if there's a little bit more downside that gets overdone, we're okay with that, too. that's why we kind of ease in along the way during some of these big-time corrections if we wait for the market to come to our terms, and when the market's fearable, that's typically the time when you want to get more aggressive right? >> yeah. well, anyone who has been around for the past 15 months can attest to that that's a great gut check, especially on a morning like this thank you so much. >> great thank you for having me. i appreciate it. >> as we head to a quick break, here is a look at the road map for the rest of the hour shares of virgin galactic off the norms. we're going to dig deeper into the numbers and the outlook for the broader space sector plus ginkgo bioworks we'll talk to the ceo later this

hour and pipeline hack attack we'll give you more details. "squawk on the street" is coming right back - [announcer] if you've tried college but never finished, snhu let's you transfer up to 90 credits toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it. you can finish.

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xfinity makes moving easy. go online to transfer your services in about a minute. get started today. welcome back it is now time for our etf spotlight. s&p aero space and defense it's negative over the past month. positive on the year down about 1.5 % right now propelled by strong performances the strength of the year from top holdings like tech strong

and heavy weights northrop grumd and lockheed martin. virgin galactic, the big news is there is no date set for the next crude flight. it had been planned for this month. due to an unexpected possible maintenance issue with the company's carrier aircraft, the flight is to be the first of four tests before commercial service can actually begin couple that can insider selling in recent weeks and the news that blue origin will take the first paying passenger to the end edge of space this summer. shares are down almost 70% from the february high. and as i mentioned, under pressure again today for more on the commercial space sector more broadly, the billionaire founder and ceo, the

benefactor and commander of the first all civilian inspiration four mission to orbit via spacex due to launch as soon as september. jarod, great to have you back. >> great to be back. thank you for having me. >> a lot to get to including the fact that you've been doing training with spacex this week first, given the fact that space from an investor standpoint is in focus right now, i wonder how you see the inflection point for the commercially driven era of human space flight more broadly. how crucial it is for companies, whether it's virgin galactic or blue origin to succeed i say that not just from a safety perspective which is paramount but also from a financial one. >> yeah. we're certainly at an interesting time in commercial space exploration. i thinks the the second great space age underway right now

and every mission that gets launched whether it's sub orbital or virgin galactic, or orbital like spacex, it's hard to bet against elon or spacex right now. i mean, if you look at just the reusable rocket technology they've been perfecting over the last six, seven years, has been a key driver in making space more affordable. and therefore, more accessible whether that's for crude or human space flight missions or simply creating massive constellations of satellites to bring broad band connectivity to the farther reaches out earth. impressive what they're doing at spacex but exciting to see everything in the commercial space industry >> as potential space tourists decide where they might book their flights, given all the developments among the different companies, i wonder how and why you decided to go with spacex and sort of skip the sub orbital

piece and go to a multi-day trip around the earth >> yeah. so the opening disclaimer is i'm really obviously a big spacex fan boy here i think what they -- i think it's one of the most well-run companies in the world what they do on a daily basis is extraordinary. and you have to appreciate the huge technological leap there is from sub orbital space flight to orbital. sub orbital, you put something up and it will come down quickly. you put something up in orbital space, it's going to stay there for a very, very long time until you bring it back. spacex has been doing that for a really long time, and efficiently reusing their boosters which is critical to making space more affordable and accessible to everyone the only reason it exists in the united states right now since the space shuttle retired is because of spacex and the contributions from nasa. >> i imagine you have unique insights in the sense that you're working to go to space

right now with spacex, but also you are the billionaire founder and ceo of a tech company that went public less than a year ago right now and know what it is to adjust to quarterly reports and deal with public market investors. how do you see space companies like virgin galactic navigating that and what investors need to understand about the sector? >> that's an excellent question. and as the ceo of a public company, we talk about our tam a lot. what's the addressable market? what is our opportunity and our points of difference in the market i'd say that those that are focussed on sub orbital space flight have a challenge ahead of them how many one-time sub orbital space flight can you do? even if you perfect point to point transportation, going to new york, to australia in 20 minutes or something like that, on a rocket it's expensive i don't know if that will ever be affordable to that, versus

looking at orbital that has a lot of utility. not just human -- not just inspiration, but payload putting cargo on space station and satellite constellations up with commercial intent i think the tam and the opportunity associated with some of the players that are focusing on orbital space flights, totally different than those focusing on sub orbital. i think that's harder. >> i'm curious given the fact that you are continuing training for intrump admspiration four rw how you're managing that especially given the fact that shift four on the heels of earnings last week is making strategic investments and acquisitions and expand not only into restaurants and retail and hotels, the areas where you're doing payments processing but also things like stadiums, sports betting, et cetera.

>> yeah. so i mean, i love my day job and nothing is changing about that we came off reporting earnings last week. we're a company focusing on restaurants and hotels we grew during the pandemic. we reported q-1 up 30% we're projecting annual payment volume in 2021 up 85% year over year we're doing really well. we have a value prop that wins in the best and worst of economic times really i'm not sleeping a whole lot. i can deal with that after i come back from space training on nights and weekends, you know, focusing on shift four during the day >> i'll leave the conversation there. great to speak with you today. thanks for joining us. >> thanks for having me. as we go to break, one tech name that's still in selloff mode is rack space down 20 %. earnings below expectations with today's move is stock has given up nearly all the gains for the

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after an open down sharply and a rebound in the fist 40 minutes of trading, back toward the lows with the s&p and the nasdaq and the dow all down a similar let's call it 1.3% at this almost 10:30 hour, about an hour into the trading session. a ton of new developments on colonial pipeline attack in the last hour the epa says it's waiving guest mandates. we are joined more with attack itself >> a ton of new developments here a ton of statements from the entities involved. we got a statement yesterday from the dark side, the bag guy group in this. what we don't have is an answer to is colonial pipeline going to

pay the ransom or not or have they already paid the ransom radio silence on that. and it's a hot button issue inside the cyber security community. they're taking hands off approach and not giving advice on whether or not to pay or not the ransom they understand this is a tricky situation. i talked to the ceo of a firm called cyber reason, a cyber security firm. he gave me his analysis of why this is a tricky problem for companies when they're weighing whether or not to pay. >> my recommendation usually in most of the cases is not to pay the groups eventually they're going to take this money and they're not just going to use it as a profit. they're going to use it in order to become better at what they're doing and they're going to keep hacking. by doing it basically we're funding their operation, and enable them to basically keep hacking. >> and the other question here is who is this group dark side

we saw the statement from them yesterday expressing sort of remorse. it was an odd statement where they promised to change their ways i've been talking to other cyber security experts today one of the pieces of analysis i got from a ceo of prevailon, he told me his guess is that this is a group that has a former russian government employeeson the payroll, and the reason is because of just how quickly and how effectively they set up. they came out of nowhere in august of 2020 set up quick and effectively a way of hacking into all these companies around the world out of nowhere that lends a lot of people including kareem to suspect there might be former russian intelligence or russian government people involved in this criminal gang but no one really knows for sure there's a lot of questions here we're trying to get answers to >> and on that, what are your expectations given you've been on this beat, that we'll get answers? it feels like we go from one to

the next to the next it's never completely clear what st happened because we're dealing with what is happening >> and it's never completely clear because the companies don't want to admit they're paying ransoms and we know they are we don't know which companies but we know a lot of money is changing hands from companies to criminal gangs and the question is who is paying who the companies have an interest in letting the things drop out of the news cycle. they're going to take your money and finance the attack on the somebody else. each company inside that boardroom is making a decision of whether or not they need to save their company, and they're not really thinking about the next hack. they're focussed on the short immediate-term which is how do we save our company here from going out of business? >> it's a tricky one

you think the lack of disclosures or a pool of that information about these attacks is only hindering the process of being able to create more robust national and corporate defenses against future attacks as well thank you for bringing us the latest after the break, ginkgo bioworks going public in a $15 billion spac deal. the ceo joins us next. we're back in two.

welcome back here's your cnbc covid update. the director of the national institutes of health telling cnbc that the fda's emergency use authorize dags of pfizer's covid-19 vaccine and kids ages 12 to 15 is a big deal >> taken out of social circles,

out of schools, sports programs and out of going to prom and hanging with their friends, this is a way to get us back to normal, and well into getting the school season started in the fall >> delaying the seeking of regulatory approval for the covid-19 vaccine the drug maker says it does not expect to seek regulatory approval until the third quarter of this year and hundreds of people crowding a hospital in southern india to try to secure a drug use for covid-19 treatment y india is facing a shortage of medical supplies the number of cases there declining today. you're now up to date. >> thank you we're about an hour into the trading session. let's look at the biggest leaders on the dow right now we only have three components that are in the green. merck and engine and p&g, everything else is lower right

now in terms of what's leading the losses it's names like home depot, boeing, and apple. david? >> yeah. well, the stocks of companies we call cloud companies are at six-month lows rotation continues to accelerate josh limpton has more for us >> the rotation, investors looking to sell last year's top performers check out the clou, the etf that tracks the cloud names looking to avoid the eighth day of losses in the last nine sessions it's now down about 20% over the past three months and that is underperforming the tech sector and broad market fund flows into the etf increased by $600 million but now declined by $112 million this year through april. laggards ripped higher last year as we looked for the products and tools that helped us learn

and work remotely. video chat with zoom and texting with twilio. recent tech ipos are taking on the chin names like snowflake all down hard from the recent highs p palantir in the green. it's down about 20% just this month. it's down about 60 % from the all-time high. just this morning palantir reporting and beating expectations on the top line better than expected q-2 it was a strong report in his opinion but the street actually wanted it to see even more up side, and they emphasize palantir is a unique asset but a pricey one that combination is a tough one in this environment. carl, back to you. josh, it's a great point it's a big name to watch along with a bunch of times in fin tech and crypto. for that we turn to kate rooney. >> carl, the payments and high

growth tech names have been some of the biggest winners during the pandemic they continue to fall in favor as part of the shift from growth to value let's start with the affirm. the buy now pay later company down today it's down about 7% after earnings a mixed report last night. despite growing revenue, the company's losses were wider than expected affirm also reporting a revenue hit from the peloton tread recalls. cathie wood's ark innovation higher rates creep up the etf is down slightly today. yesterday the etf did see the worst performance since march in the ninth negative session out of ten meanwhile shopify, another huge growth story and a winner during the pandemic it's down. it was down about 5% now down about 3%. over to the payment names. square and paypal despite big

beats on earnings last week. both companies down. square is down more than 10% some of the traditional payment names, these mastercard, american express, also taking a hit. ammex is a slight outperformer it's down almost 3%. a different kind of payment play crypto exchange coinbase getting hit. cathie wood, coming in to buy the dip. the actively managed -- the broader crypto market, bitcoin, etheir yum and dodgecoin lower as the risk market simmers down. >> thank you very much a bunch of names to watch. as we go to break, look at semis. slipping into correction territory. shares of amd and intel down the stocks down more than 10 % from the april record. the ceo of ibm joined squawk

earlier this morning this is what he had to say about the chip shortage as the s&p goes red for the month i know we talked about economic shortages that's a real problem probably for a year or two to come. it's not just about automobiles. the chip shortage will impact computers, k through 12 education with laptops as well as tablets it will impact electronics it will go across the industry, and it's something the government should take quite seriously.

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averages since late february the nasdaq meantime is down about 1.4 %. it's now down more than 5% for the month of may with the s&p also just turning negative a short while ago. biotech firm ginkgo bioworks plans to go live via spac merger the company is valued at more than $15 million with us is jason kelley. congratulations and thank you for joining us >> thank you happy to be here >> given the fact that we're seeing this broader downdraft within tech and growth names, not only today but in recent weeks, not to mention the increase scrutiny by the sec toward spacs, why the decision to go public today and why or to announce to go public, and to do so via a spac. >> yeah. the major reason for us was velocity doing an ipo process takes your executive team out of the game

for six months or so and we wanted to get there faster we like the folks at soaring eagle. they've been around the block. been doing this for a decade we did a pipe in about two weeks. 75 million into that with great i inve investors. we're excited. we think it's a faster way to get back to building the business >> in terms of the capital you raised how will you deploy that >> we program cells kind of like a computer so if you had an mrna vaccine, that's a piece of rna code your cells read it, make a protein, turn your immune system on ginkgo in boston is about 200,000 feet facility to read and write that dna code. we work with companies who have $100 million joint venture with their crop science we work with ntibodies we're like an aws for

programming biology. and this really feels like the right moment to bring that out in the world people have biology on the mind. >> it's an interesting met or the. i guess instead of custom software you're creating for companies it's custom g gnomes how does the business model work is this about specifically the ip is it something else >> yeah. so what we do is we really have two ways of bringing think about using an amazon center you pay us when our robots move to program the cell. after we're done we do a value share like apple app store a reach-in to revenue through a royalty or in lieu of that, equity in the company. so those are the two big revenue streams for us today the majority of our revenues we're projecting 150

million in '21 that's largely in the foundry revenue coming from usage. in the future there's an enormous opportunity for bioengineered cells. 2 to $4 trillion for cell applications in the future i think ultimately it's bigger >> your foundry billable revenue for 2021 at about 100 million. you see that increasing ten-fold over the next four years to $1.1 billion by 2025 what gives you the confidence that you can ramp revenues to that extent? >> yeah. so the great thing is the kind of work we do is actually already done out at biotech companies today. it's just done by people with my background i have a ph.d. from mit and bioengineering we take that work and move it to robotics, drop the cost with scale. well, today in that industry, last year there was a nice report spent about $33 billion

in that kind of work what we're doing is my gigrating that think going from on premise servers in it to cloud there's the existing spend out of the 33 billion, only 100 is coming to us. there's a real opportunity for growth there it's just the first inning >> you mentioned, of course, soaring eagle. they had a good track record the spac is trading below 10 there's always the possibility that shareholders reject the deal or at the very least it's more than expected sort of redeemed which reduces your overall capital. is that a concern to you >> not a concern for me now, no. we brought in really great folks in the pipe. obviously it's a tough time in the markets at the market. one of the things i like about it is if you look at who came in, it's all folks that are long-term bets right? on ginkgo. that's how we see the company we're trying to build an amazon scale company over the

long-term. those are the people i want. i think the frothiness of people chasing spacs are out of the market and i'm happy about that. >> when you talk about the opportunity being bigger than apps and computers you're involved in fragrance, computer, covid. tests at schools across the country as we see those open up. where do you see the greatest opportunity in terms of the technology being applied >> it's interesting. it's kind of like trying to predict where microchips would be applied in the long run in the near-term, in therapeutics, we see an opportunity. the founder of kiep pharma is joining our board. he's involved with soaring eagle. already sees an opportunity for cell and gene fpharma a computer is programmable you put in code, but it moves information around

it disrupted your information-based industries media, telecom, finance. cells are programmable really, they are you can put new dna code in, but they move atoms around so what's going to be disrupt second down the physical goods in industries. food, pharma, media, building materials, so on anything that's made out of stuff in the long run is a biotech industry but doesn't realize it yet >> thank you for joining us today. >> thanks for having me. coming up thing on tech check, a lot more on the tech turbulence with all faang names in the red an exclusive with bill mcdermott in a few moments in the meantime, worst day since february 25th for the dow and s&p.

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welcome back to "squawk on the street." i'm dominic chu. stocks lower hovering near session lows with every sector in negative territory in the red. you can see behind me. worst formers, consumer discretionary. third worst so far within that group seeing weakness in home construction-related names like

lennar, and home depot as well the worst performing in the s&p 500 overall, today, down 14%, haynes shares. over to you, morgan on "squawk on the street." do not miss, healthy returns. bringing together top health care ceos technologists and investors to explore how the most innovative companies are helping with coronavirus and eli lilly and blackstone i'll be there, too it's not too late to register. go to cnbcevents to sign up. we'll be right back.

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join the pursuit of outperformance at pgim. the investment management business of prudential. i don't even understand why they're rooting for inflation. it hurts the poor. it hurts the lower income, and if you bust an asset bubble, i promise you, the people are going to get hit the hardest, my kids in harlem and the lower-income brackets. not the wealthy. >> that was stanley

druckenmiller earlier today on "squawk box. and lots of thoughts, i'm sure, and many other things for the santelli exchange. rick >> yes, thank you, davids. sure, listen, stan drukckenmillr a trader with the midas touch. whether he's 100% correct on everything isn't the issue he's highlighting things we need to pay attention to, especially his last comment i think many forget that, viewing inflation is a cost of living increase and believe me, bottom line socio-economically will feel the pressure more. raises the notion, to raise the bottom, low are the top. never found logic in that. get to the heart of the matter at the crux of stan's argument today and his reason for thinking maybe the fed's been too aggressive, maybe too much sugar out there, the punch bowl's too big is that the fed needed toosolutely needed to std

then also step out we all understand why they didn't step out fast enough. they don't want to do it all basically move heaven and earth to in their opinion save the global economy and pull out too early, but the problem is, that the residuals of staying too long are not good. servicing that inflation is really the issue here. stan brought it out. ultimately might be forced to monetized. this gets in the weeds a little. i'll oversimplify. when you issue debt you're not monetizing technically got to pay the debt back problem, you do qe, fed holds it to maturity, give interest to treasuries, same as monetizing the debt monetizing the debt is basically, print, baby, print. it's printing, printing, printing without about obligation to pay back and unfortunately another thing the fed has done is by artificially

creating an interest rate environment that doesn't represent the risks that we face at this point with so much stimulus coming after the peak of covid hit that we can't tell where the risk/reward profile is and the original alternative is, stan also pointed out, it's going to continue to keep people in equities. the market's turned in many ways because data's turned. look al the jolts today. job openings and labor turnover. look at the chart. never been over 8 million. lots of jobs, need to get busy but not more sugar out there finally, stan said the reserve currency status, maybe 15 years. on that one, he may be right on my side of the ledger, i see that we've always graded on a global curve believe me, whether the eu or china or any other economy big enough to support the global currency status, i don't think it's going to be hem

hemaybe crypto i don't think so i think the u.s. dollar will last a long, long time morgan, back to you. >> rick santelli, thank you. and major averages lower second straight day. dow down 575 point s s&p 1.4% that does it for the street. "techcheck" starts right now. happy tuesday. welcome to "techcheck. i'm jon fortt along with carl quintanilla and deirdre bosa how to position your portfolio to take cover today or take advantage. next then, is it cathie wd,