♪ it is 5:00 a.m. in raleigh, north carolina here's your top five at 5. big tech's wild comeback breaking it down after one of the biggest rebounds in recent history. but the dow down posting one of its worst days in months and futures, they're down again. pipeline problems. gasoline shortages and the long road to recovery is the majority of colonial pipeline's operations remains shut down we'll speak with one distributor feeling the pinch and about what the real situation is on the ground meeting today, vaccines

tomorrow maybe a cdc advisory committee set to convene to approve the covid-19 vaccines. and kids as young as 12. and renters beware if you thought buyers are the only ones feeling the heat of the housing market, you would be wrong. it is wednesday, may 12th, this is "worldwide exchange." ♪ ♪ well, good morning good afternoon, good aeng, welcome, from wherever in the world you may be watching, good wednesday, i'm brian sullivan. thank you very much for joining us what an hour we've got for you between the market's wild swings yesterday to the very latest on the big hike and gasoline shortages. there is a lot happening right now. let us jump right in futures, they are down across the board. the same thing we saw yesterday although not to the magnitude.

dow futures down exactly 100 nasdaq, off 65 now, the focus again went beyond big tech and the nasdaq because of that big time u-turn it did on tuesday we were down bigly in the morning, all day long. buyers stepping in late in the day. and really brought the index back into the green by the close. maybe some short covering, maybe technical reversals whatever it was. one one of the biggest intraday reversals we have seen in months but the dow could not do it. it tumbled 470 points for its worst day since february something to watch something else to watch and it's interesting as stocks move down, bond yields they didn't move at all. the benchmark ten-year yield is pretty much exactly where it was one week gag at 1.62%. we'll get on more a moment cryptos right now doing what

they had been doing, plowing on higher, ethereum, a new record high at 4311 bucks, up nearly 6% bitcoin and all the rest also higher around the world, asia not following in our foot steps. a mostly mixed picture in the overnight trade. japan fell done, china was higher and the earlier european trade they're in the green they were in the red yesterday this time. but starting their day very nicely up, nonetheless, across the board in germany, uk and france. so let's jump in on this wednesday and find out what is going on with these markets later with gibbs management erin gibbs. erin, we noted that the bond market didn't move we know that's something you probably still have and focus on it wasn't like a great fear trade where the vix spiked, yield fell, gold went up, bonds

didn't do anything what does that tell you? >> so, yeah, this is very much an equities only story it's not about across-the-board inflation fears that we've seen a lot before this is really about economic recovery and leadership rotation. pure and simple. when you don't see equity markets and bond markets in tandem, you really got to look at what's going on and dig deeper into what the equity leadership looks like. so when you look at, the first couple months of the year and the overall trend, as well as what happened last week, and certainly the beginning of tuesday, you really see that it's the smaller cap stocks within the large cap space that are outpacing the mega caps. and mega caps have really lost their shine for the first five months of the year so, i think investors really need to understand that during an economic recovery with a

supportive central bank, you're going to see the smaller cap spectrum outperform the mega caps, particularly when those mega caps are so highly valued for the past two years >> bank of america had a note yesterday that when value begins to outperform growth, erin, it tends to last for a long time. i think something like five years, i'm going off memory but it was around that time. the rotation into value trade has only been going on for a couple months but it still feels like people don't believe it i guess maybe we've been so conditioned for a decade that tech is the only thing to invest in, do you think it's not the journey song "don't stop believing" it's never start believing. >> yeah, if you've been a valued investor for the past five years enough been underperforming. it is market, believe it and even if it's value versus the date, you look at growth making a comeback, but since

may, we've seen that continued value outperformance and this relates to, again, the smaller cap, less valued companies when you look at cap versus growth, you have a bias, big bias towards smaller cap companies within any universe and growth tends to be the mega caps when you're looking at market-weighted indices. and smaller caps to play off of any inflation concerns so using a value etf is a great way to get exposure to both the smaller cap recovery and economic expansion, as far as the well ah inflation reduction. >> you mentioned market weighed. that's very important what you're saying, the big tech companies they've got outsized power in any of the market-weighted index. is that what you're indicating,

equal weighted etf, in a company with a $10 million cap does quell and apple does not, the index should still outperform versus a market-weighted etf >> right you don't get with examples of stock, with the staples, you do get exposed within the job market index but definitely the smaller caps are really what are driving the economic recovery and tend to do well for multiple if not a year to two years with economic expansion because they're the ones that benefit. when you look at the growth rates for these smaller companies, you know, you're looking at double-digit gains even in the mid-20s. even though they may be classified as value they certainly look as close stocks when you look at earnings. equal weighted is great exposure and outperform the bond market

>> maybe equal weight is greater than greater weight going forward. something we're going to watch, erin gibbs, gibbs management good to see you, take care when we come back, the continued saga of the colonial pipeline still closed as panicked gas line buying starts to set in, state or states of emergency. plus, the streams ice not named netflix or disney plus that is riding high ahead of the open, who is that mystery chart. and why renters are starting to feel the squeeze in a red hot housing market a report y'loul only hear when "worldwide exchange" returns

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all right, now, to the very latest on what we know and what we still don't about the current status of the colonial pipeline and fuel supplies all along the east coast as of right now, florida, having and north carolina have all declared a state of emergency, as each state looks to shore up its own fuel supplies. according to gas pipe as of 11:00 last night, 16% of all north carolina gas stations are out of gasoline. either some or all grades of octane about 10% for virginia 10% for georgia as well, 8% for south carolina and only 3.5% for florida. it's all coming courtesy of gas

buddy. according to energy secretary jennifer granholm, colonial is expected to make a decision on fully resuming operations at the end of the day today now, whatever decision they make, if you are hoping for immediate relief once the pipeline comes back online, you m may have to wait a bit longer. in fact, maybe up to a week for things to get back to normal that is because fuel runs through the pipeline at about five miles per hour. when you add up the more than 1500 mile trip from its origin in houston to its final destination for some of the gas in new york, that's about 13 overall days of course in other areas like the south, louisiana, georgia, whatever, maryland and d.c., they will be a little bit quicker. but for the longer term terminus like delaware, pennsylvania and new york, it could be a longer wait now, all of this assumes, it's always dangerous to assume, that

the pipeline is empty and has to start from scratch with an empty tube remember, the colonial has holding tanks all along the route. of, well, anything, with regard to the tanks or pipes right now. either way if there is a prolonged wait for gas, one solution to get gasoline to new york, new jersey, if needed are ships -- yeah, they're slow. and they're still in europe. but still may be faster than a full wait for the pipeline to come back online so, we, we can import refined gasoline from europe, seems weird, but we can do it, if need be and the latest report, six tankers, a minimum of six, have been hired from europe for a possible trip although no word if they're on their way. bottom line is later today, we should hear from colonial's management about the status of

the pipeline and when are it can substantially begin to operate again by the end of the week, per their plan, a couple days ago. we'll find out today it's a big day fo more on this story and how consumers are facing the crisis let's go to frank holland who flew down to georgia luckily that flight did fuel on his plane and made it to atlanta safely frank, we're glad to see you there because that's kind of the epicenter for a lot of this for many different reasons >> reporter: right >> what are you seeing on the ground there in georgia? >> reporter: well, brian, definitely seeing long lines every where you go gas demand and prices usually rise in the weeks leading up to memorial day nothing new. the unofficial start of the summer driving season but this gas stations completely without gasoline some of them covering their times with plastic bags. that is unusual and that's caused by the ransomware attack. according to gasbuddy.com, many

truck stops out of fuel in the atlanta area that's something to watch. and we've seen people buy and storing gasoline those red canisters that you see in your garage the fuel might run out and if you've filled out in recent days you've actually seen it. regular unleaded up 13 cents from a month ago 17 cents from a week ago big trump in a short time. aaa is urging buyers not to buy unless they really need it >> urging people against panic shopping and hoarding. so, if you do have a trip coming up, just go to your local gas station and gas-up and plan along the way to get gas. but don't wait until the needle is on empty, you know. begin to plan ahead a little bit. channel your inner boy scout and be prepared. >> reporter: brian, you mentioned in atlanta, i was at

hartsfield-jackson yesterday, one of the busiest airports in the nation, they're looking for additional suppliers but no problems the flight from charlotte to london, and southwest delivering fuel to impacted areas the trade group airlines says contingency plans are in place the biden administration also responding, to limit hours truckers can drive per day in order to keep fuel moving through impacted states. brian, back over to you. >> yeah, it's fascinating, too, usually, frank, you know, a plane will come in and pretty much fuels up. i'm hearing reports that planes are coming in with extra fuel to actually off-load so airports like hartsfield and charlotte and others have more fuel. okay you're out and about you talked about panic buying. people saying don't do that. we are human nature. you and i were on the shep show last night and we said apparently gasoline

is the new toilet paper when it comes to hoarding. what you seeing and hear from people in and around atlanta >> reporter: brian, if you go to my twitter, i can show you videos of signs where the gas stations have zeroed out the price of regular unleaded because they don't have it most have diesel fuel. and lines, i just walked down a line of two dozen or so cars, i talked to people, i asked them, hey, are you panicked buying or worrying it's going to run out they're saying, i'm not panicking, but i've got to get to work. i've got to get my kids to school because as you mentioned there's no clear certainty when it's going to happen >> i'm not panic buying that guy is, right, frank, it's not me, it's him right? >> reporter: right >> reports five-hour long lines

in north carolina, folks there is gasoline out there. note that. frank holland, we'll see you all day in georgia, my friend, thanks >> reporter: thanks, brian. by the way, we're speaking with a fuel distributor one who supplies gas to gas stations in a couple minutes he will know exactly what's going on in north carolina tune in for that meantime, the battle for the future of republican party maybe the future of congresswoman liz cheney, she doubles down over taxi over former president trump and her leadership plus, amazon saying no thanks to a $300 million tax evasion fine we'll tell you what they're doing. today's big number -- 117% that's the increase in web searches for inflation since the end of 2020. according to google trends that's the highest relative ar iert ncateasechntessie lst 2008

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need better sleep? try nature's bounty sleep 3 a unique tri layer supplement, that calms you helps you fall a sleep faster and stay a sleep longer. great sleep comes naturally with sleep 3 only from nature's bounty all right. welcome, or welcome back it's time for your big money movers on this wednesday morning. three stock stories you have to know about or at least we're going to tell you about anyway stock number one, softbank, the company reporting a $37 billion profit from its division fund.

fueled by things like tech stock. and used car site auto one group. and stock two -- who was your mystery? fubotv, reported better than expected first quarter revenue and subscribers numbers. fubotv stock booming it's up 20% right now. still down on the year, but up 20% right now. stock number three, a related company to that story, viz iovi, the smart tv maker vizio makes as much money from ads and customer data as it does from selling televisions shares falling despite the beatoff 3% but shares up 3% vizio for

march. let's get a check of other headlines including big news in sports baseball and horse racing with nbc's phillip mena in new york good morning >> reporter: hi, brian first, we start with breaking news out of the middle east where the violence between israelis and hamas escalating and showing no signs of slowing. at least 200 people killed yet, and 1,000 rockets have been fired on israel since the fighting began this is the most intense fighting between the two sides in seven years and the u.n. has warned it could spiral into an all-out war. house republicans are expected to purge congresswoman liz cheney from her top post this morning but she remains defiant, delivering a stark warning to her party last night about the dangers of embracing former president trump's election lies. house minority leader kevin mccarthy has backed new york congresswoman elise stefanik to

replace cheney as the gop conference chair and a covid outbreak has hit the new york yankees, the third base coach, phil nevins, reggie williams and a support staffer have tested positive for the coronavirus. all three were fully vaccinated with the johnson & johnson vaccine and these are considered to be breakthrough cases finally, kentucky derby winner medina spirit has been cleared to race at this statd's preakness stakes after saying that the horse was illegally treated. and owners say the horse will undergo rigorous testing for the preakness. brian, back to you >> interesting news out of baltimore, for some bettors who may or may have voted on

mandaloon to win is gasoline really running out? you see them panicking but we've got a one-on-one with one of the largest distributors in atlanta. you're going to want to hear that and the podcast every day, if you're commuting to work, the interview will be if not already, download the podcast if you can't catch the show on apple, spotify. or just call me and i'll read it to you we're back after this. ah, she thought that squirrel on your brand-new flat screen tv

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the selling continues. futures, they are lower again but can big tech do another big time turnaround today? keep the easy money rolling, another fed head speaking out saying it is no time to taper. and the gas lines and the gas cans are out, as panic buying sets in across the south. when will the colonial really start to run again we may find out today on this wednesday, may 12th. and this is "worldwide exchange" right here on cnbc ♪ ♪ welcome or welcome back, everyone good wednesday morning 5:28 here in the east. hope you're having a great start to your day, or perhaps you're watching from hong kong, who know

what a weird day it was, with the while swings on the latest on the colonial or gas shortages or perception of gas shortages there's a lot going on futures, they're down, not nearly as much as yesterday, but they are in the red. dow off 80 nasdaq off 53. now, this time yesterday morning, nasdaq futures were down about 165, so about triple what they are now. we opened way lower. selling was fast and furious the fed in a later afternoon, a short cover, maybe technicals hit, whatever, the outlook is popping in the nasdaq did a massive u-turn, the buyers stepping in yesterday and nearly, nearly brought the nasdaq into the green. the dow could not do it, dropped 470, for its worst day since february we talk about the reversals intraday well, look at some of these swings from their lows to the close intraday

the can, the bigger etf, right, social stocks moved 7.7% from its low of the morning right at the open to the close. remarkable the xbi, a big-time biotech etf, it moving neared 6%. and the xle metals etf, went 5.5 of c 5.5%, lows and highs from the sessions, clearly market swings on tuesday what will happen today we don't know. you got to stay tuned to find out. right now, though, to some of the other morning's top stories including another fed president talking about the central bank's ultimate policy road map bertha coombs is whohere with tt and other top stories, bertha, good morning >> good morning, brian james bullard is echoing a

number of his colleagues about keeping the central bank impact. speaking to cnbc yesterday, bullard acknowledged while progress has been made with the economic recovery, he says it's too early to talk about taper when it comes to when the pace of purchases will slow bullrdard adding that he and his fellow heads like yeah khan jay powell will lead talks when that move is appropriate. now, the cdc advisory committee is set to meet later today to decide whether to approve allowing kids 12 to 15 years old to get pfizer's covid vaccine. that vote comes after the fda signed off on the move monday on an emergency use basis if the cdc does that final yes vote, the age group could start getting vaccines as early as tomorrow and europe's second highest court has ruled today in favor of amazon's appeal of an eu-ordered pay of $300 million

in back taxes. it accuses luxembourg of an illegal deal to pay less tax than others. and apple won its appeal over a back tax deal to ireland so, looks like they won't be getting that extra tax money, brian. >> the tax fight, not just here, but all across the world is going to be maybe one of the corporate stories to watch in the next couple of years bertha coombs, thank you very much, bertha talk to you soon all right. now, back to this morning's development and top story, that is, the continued shutdown of the colonial pipelines now, it is causing shortages of gasoline, or at least the perception of gasoline shortages in some areas which is causing some panicked buying people not only racing to fill up their gas tanks, but racing to fill up gas cans. the reporters of four or five-hour long lines in parts of

the south. so what exactly is the real situation with gas supplies? well, david alexander is president of j.t. alexander and son, a north carolina-based fuel distributor. been around since 1930s. the heart of nascar country. they are used to filling up gas tanks quickly. david, we really appreciate you joining us we know how it sets in, it's the panic buying local news reporters go out, people see other people in line. they race in line. is there any, triuly, any kind f a gasoline shortage anywhere that you service >> yeah, well, it's been a tough couple days here you know, we were -- yesterday morning, i woke up, we had one location out of fuel we're doing our best with allocations at the terminals this morning, i woke up, we probably had 40% of our locations after yesterday's crazy lights out of fuel people are lined up all day long for no reason, people have to get back to work, but people

were coming out of the wood work buying fuel yesterday. >> my dad owned a gas station when i was a kid in california they used to line up, the tankers would come in, sometimes, only a fourth full. that's all there was to buy. my dad getting frustrated by it. tell us where the problem points actually are you'll go to a big tank on the colonial or plantation pipeline which by the way is another important pipeline next to the colonial, you'll go to to fill up the gas trucks. is there fuel in the tanks where is the problem point >> yeah, there's fuel in the charlotte term in greensboro there's fuel there whatever wasin the tanks was i the tanks when the pipes shut down we went through a process april 15th to drain the summertime tanks for the fuel we had to recover from that.

there's fuel in the tanks wherever was there friday is still there. it's getting low at the terminal, there's no question, but we're still able to get fuel we're having to take tankers to go to multiple locations to get our customers fuel to sell a little bit, kind of like it was back in the gas shortages in the '70s >> yeah, amazing, the more i look at it david it looks like that greensboro hub is such a key point for you and others looking to get gasoline around the country. so, what are you hearing what are bp and marathon, some of your suppliers, what are they telling you about how much they have left? and when the colonial may be telling them they can get more >> well, yesterday, they were able to do some manual pushes from those holding tanks at the terminals to get them into the specific terminals, marathon, bp, shell. and that happened successfully yesterday, so we were able to get a little bit of those tanks. but that pipe's got to get

going. we got to get that thing flowing in the next day or two, or we will be in a mess. >> yeah. i guess the confusion, david, and we talked about it at the beginning of the show is that if the pipeline was truly empty, i mean, drained which we don't know if it is, it can take up to two weeks to get new supplies from houston to new york because it moves it at 5 miles an hour, that might be a week for you guys in north carolina any indication of the sort of knock-on effects is there fuel sitting in the pipe do you have any idea what the status is? >> yeah, the pipe's full i think it's full. when they shut 2 dowit down, it full there's plenty of push barrels in the refineries to push the product up once they crank it up, it will be a slow process to crank it up, once they do there's plenty of ploroduct to push once it gets going it will

recover. it will take a week or so to get it up to normal levels but as soon as they can get it going, we'll be on road to recovery pretty quick >> that's good news, david trying to figure out the status of the actual physical pipe, if it's empty, that's a whole ball of wax but that's one of the small positives we've heard in the last few days, david take us through it today, we're supposed to get an update from colonial pipeline. let's hope they say, we're turning things back on tomorrow full steep how long will the residual impact -- you know, to the ultimate consumer in greenville, south carolina, or greenville, north carolina, how long will that last? >> i think it will last through the weekend, early next weekend to crank it up they cranked it up today i don't think they can get it going full capacity. if they can get it going by the weekend, i think they can recover by midweek next week it's a process, if they bring it

back on, everything is working correctly. that's a huge massive undertaking. they've never shut the whole thing down before. i'm sure they'll have problems here and there i think they're working hard, i hope, to get it going. >> now, you may not be a cyber security expert, david, or you might be, who knows, i don't know what you do in your personal life. i'm going to ask you to speculate a little bit you may tell me to buzz off which is this, you mentioned they switched to the summer driving blend where they drain the inventory. either it's just a stroke of massive luck about the timing of this or whoever is behind this may have picked the exact best in their case, worst in your case, timing to do this, correct because it was already being lower when they shut it off? >> i don't know, that was april 15th they were building inventories again so i'm not sure if that was timing nevertheless, we are going through the driving season of the summer, memorial day

weekend, they were ramping up noor season. essentially with inventory, not being able to base their inventory from last year because it was crazy in the pandemic so, you know, they were committed to us. we have plenty of fuel for the driving season as we see it pick up. >> quickly, do people -- you see the news reports, david -- you're living the news report -- you're the news. do people need to hoard gas? >> absolutely not. the pipeline was shut down since friday we were going through the weekend. everybody was buying fuel like normal our governor declared a state of emergency the day before yesterday and it just went crazy. everybody went nuts trying to get fuel, trying to fill up every gas can. at the end of the day, you can only drive so far until a couple days just not to panic, the panic creates so much demand, we can't keep up with it. >> yeah. and i'll tell you what, i know

you guys are a little more back to normal down there than we are up here, luckily not a lot of people are commuting around. gas miles driven are down. david alexander, spectacular information on the ground. really appreciate you joining us nice and area. an important story, david. thank you. >> thank you for having me do not panic buy states of emergency making it an emergency. anyway, on deck, housing staying hot. but high prices causing new problems for another group, the renters. i'll tell you why, next. on. it doesn't ring the bell on wall street. or disrupt the status quo. t-mobile for business uses unconventional thinking to help you realize new possibilities. like our new work from anywhere solutions, so your teams can collaborate almost anywhere. plus customer experience that finds solutions in the moment. ...and first-class benefits, like 5g with every plan. network, support and value without any tradeoffs.

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welcome back the u.s. housing market continues to be red hot. we've talked about it supply at record lows, demand at record highs. and prices, therefore, continue to surge but over the last decade or so, it's not just been about buyers. it's been about renters. renters have felt the pinch but now with covid and lockdowns and the change, how might the real estate market change joining us pricewaterhouse's alexis crow. great to have you on you've been riding out the pandemic in new york city. likely the only one who stuck out the whole thing. and that is endemic of what you wrote about to your clients out there about how this rental market may evolve. talk to us about what you're

seeing in places like new york city a one-year hit or do you think there's a multi-year knock-on effect >> thank you, brian, for having me certainly what we've seen in major superstruck cities like new york and san francisco, other gateway cities such as boston, it's a tale of two truly, we've seen a bifurcation of high-end multirents and lower income buildings this is something that predated covid-19 but rents have been rising in the double digit, sometimes, 22% in the lower income areas. whereas, on the higher income neighborhoods, you have developers and operators offering massive concessions to be able to keep people that otherwise could work from home and flight to the suburbs. >> and that's one of the great misconceptions and made bad information around this which is

everybody is fleeing the city. untrue in fact, net migration is not that much out as opposed to in it's just who's is moving out, the higher income, maybe you have kids, versus who is moving in how do you see that impacting the real estate and real estate investing landscape in boston, new york, san francisco? >> well, truly, what's underlying the magnetism of these gateway cities and why people were so willing to step up to higher rents across the board is what is called a glomeration effect according to which there is a very close correlation between density and urban density and innovation across the board. so you have very efficient labor market pooling in cities such as boston, san francisco, new york, with cross-sectors, certainly, a lot of those workers were able to work from home. the dividends and productivity gains of not having a proper commute, et cetera will start until weigh in over time with a

lot of collaboration so, what we see is these markets being propelled by new entrants to the labor market. either millennials or gen-zers priced out in higher income neighborhoods, albeit in less caliber over the last few years. so when we start to see employers calling their workers back to the office teams desiring to be able to collaborate, we truly do see new entrants in the labor market in terms of rent and purchasing >> all right, dr. crow, talk your own book. new york city, what's going to happen in new york in the next two years? going to bounce back in six months where do we stand? >> well, one thing i think is true is we have faced a dearth -- or, a lot of investors have been focused on a dearth of leadership according to which it's very difficult to manage a pandemic, whether you're a governor, whether you're a maryor or ahead

of state we've seen a lot of dissent across stations around the world. certainly eyes are focused on elections here what i would point to, brian, to the extent to which it's not only front services and dealmaking that's happening in new york, although dislocated a bit in miami or the hamptons, but i would say in the longer term, it's cross-sector. it's looking at some of the largest employers and companies in the united states that have taken out significant rents here to be able to employ their workers from across the income spectrum >> well, i'm not a phd like you are, dr. crow. i think you may have said a lot is riding on the mayoral election of new york a lot of speculation great report out there from pricewaterhousecoopers

thank you. >> thank you the morning rbi, we're pulling back the curtain on the pipeline and may is asian american pacific islander month we're spotlighting families throughout the cnbc family. >> one of the most difficult parts of growing up as asian american is overcoming biases. one of the biases that i was faced with, i was not good with intrapersonal skills but much stronger with math i think with self-promotion and advocacy you can change that and show those around you that you can be good at many things not just a stereotype that comes with being arabsian american. and help people stay safe and secure inside. our innovations keep foods and lifesaving medicines cold

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please hold. ♪♪ i got you. ♪ all by yourself. ♪ go with us and get millions of flexible booking options. expedia. it matters who you travel with. expedia. labradoodles, cronuts, skorts. (it's a skirt... and shorts) the world is going hybrid. so, why not your cloud? a hybrid cloud with ibm helps bring all your clouds together. that means you can access all your data, modernize without rebuilding, and help keep things both open and secure. that's why businesses from retail to banking are going hybrid with the technology and expertise of ibm. today's most random but interesting thing is the very random but interesting ownership structure of the colonial

pipeline you might have heard about the colonial the last couple days because it's very different than any other pipeline in america. for one, it's a private company, it's not a publicly traded stock. also unlike most of america's pipelines it doesn't have one primary owner or a couple. it has five, based all over the world. here's the breakdown of colonial pipeline's ownership the biggest piece owned by koch capital, a unit of koch industries 23% owned by kkr and south korea's national pension and kkr pipeline a quebec, canada based company cdpq and the 16% of australia and shell, 16% when you untangle it, it's

actually seven different countries based on four different countries, heck, four different continents, all operated from the pipeline hot bed of alpharetta, georgia, where plantation is based as well colonial, an unusual company, certainly in many ways, random quite interesting. back now to the markets and we're all watching very close, 8:30 this morning, april cpi, consumer price index it hits the tape and no doubt everybody expecting it to show one of the biggest pops of the year, if not of all time will it matter let's welcome in jenny harrington jenny, how close are you watching the inflation measure, maybe not at all >> well, i'm always curious, so i'm watching it but as a long-term investors it's not going to have any impact on what i do in the portfolio today, this week, next month.

what i think is interesting is the debate we see enemerge transitory versus permanent. we've got the fed transitory, feeling for those of us in the real world it's going to be permanent and as that plays out that's what's going on to long-term impacts on the market. >> connect the dots, right, the market is expected hot, unless it comes in at 5 or whatever that could bring up the taper conversation, maybe we raise rates quicker. which could raise bond yields and then growth stocks is that kind of the domino effect that may happen >> maybe but, again, it's really -- it's not what's happening today, but it's what we're going to see in six months, 12 months, 18 months in terms of the permanent unanimous. a lot of these big inflationary numbers are because of

disruptions over the past year that's what they're blaming it on they're saying oh, well, the reason it's big now is because of what happened a year ago because of supply chain. so what it really is what happens next year. also the pace of that. one of the things that's interesting. we've all looked back and said there's been a massive leadership rotation since last september, some people say since november, a lot of that conversation of leadership rotation has been around things like the vaccines, like the reopening, like the election i would argue that actually it's been about inflation too and this inflation really did start setting in, in the fall. and the market did react to that when you think what does well in an inflationary environment, you sink think cyclicals and the market what does poorly in that environment, whether transitory or permanent are the big cap

tech stock that have future cash loads that we're depending on. so when you start to discount those cash flows back with the higher interest rate they're not worth as much today. also, as we think about inflation, we think about when you're paying more for gas and your house, all of that, that ultimately takes money out of the consumers' pockets so they have less to spend on expensive goods and then you can argue the other see and inflation and how that plays out >> whatever it is, people say it's because -- people say it's transitory, ships off the coast of l.a., with all due respect, it's happening around the world. if it's transitory, it's happening global lumber prices are soaring globally, not just here. jenny, i posted a picture of a "forbes" cover to talk about intel's big turnaround and new vision at the top. guess what, the cover was from 1999 i just thought, wow, we come

full circle, the names you like are ones we were talking about back then, cisco, intel, ibms like 20 years. >> right i was hoping for your rbi of the day you would make people guess what the tech leader hots cnet d amex that's part of the leadership rotation that we're seeing this is where we're reminded it's not all that valuation. it's not all about a great story. they need to work together, and these companies still have great stories, cisco and intel and ibm, amen and tgate are there for everyday lives it's neat to see the market gain some rationality, and start to reward the companies where there

is still growth ahead and they weren't trading at stratospheric valuations >> well said maybe you gave us an rbi challenge for tomorrow we have to flip it because now we tipped off the audience, jenny harrington good stuff appreciate the conversation. best to you. have a great day >> thanks, brian >> you're welcome. that does it for us on "worldwide exchange. dow futures down, nasdaq down as well could be another wild day. more on the colonial all day long i'll see you in 30 minutes on "squawk. they're up after the break have a great day, wherever you may be take care. to hug my students. with every vaccine, cvs is working to bring you one step closer to a better tomorrow.

♪ >> good morning. stocks lower after a wild session on wall street meantime, cryptocurrency ether surging to a new high. we'll show you what's moving

straight ahead and traders will be watching for a key measure of inflation talking about that a lot lately. before the opening bell, we'll get you ready for the day's big cpi report maybe not too big. plus, a big milestone for nonfungible tokens, the crypto post robert frank with that report. it's wednesday, may 11, 2021 i feel like it might be the '70s again. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. and boy, what a wild ride yesterday for the markets.