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.

if you weren't paying attention, you missed out let's take a look at what happened with yesterday's volatile session this was one of the wildest days of the year for stocks big tech, we were here yesterday morning looking at big tech stocks under pressure. they did take a big hit at the start of the day and selling spread during the rest of the day as the day went on and then the tech shares rebounded coming almost all the way back into positive territory but left the rest of the market in the red take a look, in fact, yesterday at this intraday chart of the now and nasdaq dragging everything down. around 11:00 a.m. or so things started to pick up it was really the end of the session where things looked so strong but dow behind dow down by 1.3% nasdaq down by 12 points when the bell rang. s&p down by 36 it was the big tech names really

the ones to focus on amazon and netflix, higher by 1% facebook losses to close slightly higher. and tesla shares have been down sharply. they came back down by the end of the day if you check out u.s. equity futures this morning things are shaping up to be an interesting day. dow futures indicated down 106 points yesterday, by the way, was the weakest day for the dow since february home depot down by 61 points and s&p down 14 points after losing 36 points yesterday and the nasdaq is indicated down right now by about 75 points while all of this was happening, treasury markets basically, crickets you didn't see much activity, or anything happening there you see the ten-year is yields 1.615% of course, people are talking inflation, that being a big

interest point but that's crazy that the treasury market didn't pay any attention to any of it however, inflation is in focus with today's "squawk" planner. we're getting consumer price for april, 8:30 a.m. eastern time. economists expect an increase of 0.002% increase for march. and the expectation of year over year gains 3.6%. if that's the case that would be the biggest jump since 2011. that's why this morning, with the "squawk" stack, we're focusing on the commodity prices that have been running up ever so sharply copper, we told you yesterday closed at an all-time high monday up another 1% yesterday. four out of five sessions it's been higher. it's trading up again this morning by 0.5%. crude up by 0.5% another 0.6% and soybeans, highest level for

the close for soybeans, since september 2012 guys, i wanted to throw another couple things in here, volatility index up. the vix up since march 10th yesterday. dollar index ended down a little bit in fact for the year, the dollar has now given back all of its gains. and you can't help but think stan druckenmiller talking about it and wondering what's going to help next. >> yeah. $16. $16.42 that is -- i remember 13 and $14. but you hear my reference to the '70s andrew's next story about the pipeline i mean, i don't think you guys remember, you're lucky you weren't around in the '70s if you are, you're old >> i do remember in the back of the station wagon waiting in

line >> you needed odd and even license plates to get it >> exactly >> this is the deja vu i'm having the middle east, crime in new york -- crime in new york city the middle east. gas lines, inflation i mean, all of these things are happening again, the only thing we don't have are hostages iran. taxes going up we don't have high interest rates and the stock market looked good for now. it's just starting to look -- i don't know, i'm having this horrible deja vu from the '70s and there's no reagan on the horizon who is going to come in and fix all of these things, sorkin who do we have when this carter redux presidency is over, who do we have that's going to come in here and start a new bull market you know, all of the things that were going on back then.

the hyper inflation, the stagflation, the higher interest rates. all of the things that could happen who's going to save us, we don't have anyone? >> let's see how things pan out maybe it's not that bad. i don't know if we're going to compare him to carter just yet >> i knew you'd like that. >> just on a year over year basis it is worth pointing out given that we used to talk about the trump bump constantly, you can make the argument that there's been a much larger biden bump >> yep >> we'll have to see -- sort of an extension that we used to talk that might have extended from the -- >> yeah. >> and came from the bush years -- oh, no, wait that was a financial crisis >> i don't think so in that case okay we've got an update as joe has mentioned with the colonial pipeline as of this morning. florida, georgia, virginia, north carolina have all declared

a state of emergency as each look to shore up fuel supplies according to gas buddy as of 11:00 p.m. eastern time last night, 16% of all north carolina gas stations are now out of gasoline either some or all grades of octane, 10% for virginia 10% for georgia, 8% for south carolina, 3% for florida according to energy secretary jennifer granholm, colonial expected to make a statement about operations resuming at the end of the day we'll get an update from brian sullivan on all of this. but, yes, joe, i don't remember -- i wasn't there to remember -- >> you've written about it >> i've read about -- i don't know if i've written about it, but i did read about it. sounds like becky was experiencing it herself. >> oh, i definitely remember >> we may have time. we're 1.5% on the ten-year so, we've got 20 points basically -- 21.5. so, we've got some time there.

but do you know a really tall central bankers? do you know anyone that -- you know, really like in case we need to call one in here >> imposing, ready to smack down on any of this inflation. >> yes. >> right right. who do we know -- who do we know that's tall enough for that? we need to think about that. shares of -- we're talk about volker, see, not everyone remembers. we're going to have the wallstreetbets guy on. i was reading this stuff these people are all like 26 years old that are doing -- he's actually in his 30s but it's a new world. it's a new world you know, it's the boomer-created world that they're supposedly pushing back against. i have so much guilt at this point but everything, but not this shares of xiaomi have surged

from a black list that would have barred it back in january, 9 tthe trump administration accused them -- yesterday, the department of defense reported that vacating that order would be appropriate. becky. good news for amazon out of europe this morning, within the last hour, a european court ruled that amazon does not have to pay more than $300 million in back taxes to luxembourg eu regulators have claimed that amazon had received unfairly limited tax treatment. that seems to be thrown out. stock right now down by 0.2% andrew meantime, new out this morning, softbank reporting the highest ever annual profit for a japanese company annual net income hit $45.9 billion, it was fueled by a series of blockbuster ipos

including a 40% stake in the commerce company we did that interview on the show when that happened. the company also logging a gain of $8.5 billion from last year's sale of the control in its stake of sprint and rise in remaining holding. softbank came after the close of tokyo we'll show you the stock tomorrow morning h it's been a reversal it's been a wild ride this company has been on but it's turned around in a very positive way for them in the past year. becky. >> thanks, andrew. when we come back, we're going to take a close look at yesterday's wild wide in the markets including tech stocks. plus, the big move for cathie woods stock. >> as we head to the break, let's take a quick look at virgin galactic.

that stock plunged yesterday, finishing higher than 1% the company said last night the next spaceflight test could be delayed further. another update is expected this week right now, the shares incad down by 1.7% "squawk box" will be right back.

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well, tech stocks went on a wild ride yesterday. the nasdaq and the ark innovation fund moving in lockstep, they both got dragged down sharply but then they rebounded after early steep losses joining us to talk about the tech drivers is sarat sefi he's an cnbc contributor sarat, what happened yesterday is there any explanation for it? >> i don't think so, becky investors are focused on the next quarters. as you talked about inflation is country and center earnings just finished and it's what's going to drive the economy going forward. right now, we've got this kind of confusion is it just tech that took us here from the last year and a half or does value come back? the real economy stocks? our view is you have to be

diversified, play in both areas, if you're not diversified, you are going to have much more volatility in your portfolio especially what will you saw intraday yesterday and the rest of the year. >> it's crazy to watch it play out. inflation, especially, if it's a problem, it's a problem especially for big tech stocks because there's a lot of cash sitting around ful there's inflation you'll go back to the material stocks. what was weird, sarat, watching that play out and nothing rap when it comes to treasury. like the bond market was the smarter market i'm trying to figure out does the bond market know something that the stock market doesn't? or is this just a case of the fed being all invasive when it comes to the bond market that you're not going to get a true read or signal out of the bond market this time around? >> i think it's the latter, becky. the fed has made it very clear they're not going to let rates

rise right now they're playing with the front end of the curve and the ten-year as well right now, the interest rate market is really managed by the fed. no matter what will we're seeing, copper prices going, lumber prices going up, oil prices going up and now with the cpi numbers, the fed is consistent this is transitory. they're going to let it run hot. in the meantime, stocks are affecting it yes, you're absolutely right, the bond market is normally the smarter of it. but when you have an unofficial ceiling on the bond markets in terms of yields, this is a point of crying uncle. when you're talking about the dollar, the dollar is getting weaker and that's going to haven't hav an effect on the stock market. and that's going to have global and growth tech. when go back to tech, we like the ones that have cash low right now and are growing.

they're the ones less affected by any intratrade movement that could come down in a couple quarters it's the cash stock that are discounted much more than in the future there's a lot of value in tech as well. but i think you have to be very careful once we get the ceiling off. and that could happen once the fed says, hey, the economy is great. inflation is running better than expected and then we're going to pull back because that's when you see yields move. because you're also seeing yields artificially lower for investment-grade bonds you're not really getting a true market as to what bonds should be trading at. >> when i hear you say something like that, it makes it sound like you're halfway out the door with big-tech names. is that the case or am i reading too much into what you said? >> no, i like the big techs, the

facebooks and google and paypal and go daddy those are good growth companies that have cash flow increasing over the next few quarters where i'm a little skeptical are the cloud stocks, over ten times earnings some of the spacs, and nfts, those are the terminal values created years down the road. that's where the ark funds play also they're very good companies. but if you're going into an where inflation is going to matter or rates down the road, again, that will affect the whole market with multiples, but you want companies that grow you got to be careful, it's not like it was a year ago with interest rates and ten-year was at 0.5 it's a combination of the portfolio. ant you will benefit from the industrials and financials because their earning ings are g to grow. not just where we had the last

four quarters looking back >> sarat, you just put nfts and spacs in the same categories with cloud companies, that's just mean. i don't see them as being anything alike you know, you got the cloud companies taking place and then speculative places like spacs and nfts seem like a whole different category to me >> i'm talking about if investors have put a whole bunch of capital in those areas. you have to be very careful looking at the spacs and nfts, especially the spacs, what are you buying and just be careful as you go forward because even if they have good earnings, the multiple could compress on you. and we've seen that happen in the past so, be very careful as to what you're looking at when you're talking about growth stocks and parse it down to valuation >> and i think you touched on another point here, too, just that speculative fervor. that has run so hot.

there's been so many new areas and there could be really good reason behind some of it if you start to take momentum out of the market, you start to put fear in the market, you got to wonder what happens to some of the really speculative areas, too. >> you do, because the other part is who are the long-term investors in some of these areas. and we don't know yet. and if money comes out of those and some of them have leverage on them or margin calls that's where you see a lot more momentum and volatility hurting you, as opposed to larger cap, some tech stocks are owned by institutional investors i think some of that volatility could cause market downturns i think investors need to be careful. the key is own what you know and also make sure you're going to get used to volatility. we had it this week but a few weeks ago. it's going to come especially as the earnings or inflation

numbers run hot. the market is the going to be a little more confused, hence, a little more volatility with it >> it's good to see you this morning, sarat and talk through the weird moves. something tells me we've got more to come >> you're right. stay tuned the ride is going to be wild for a few weeks. >> we'll see you soon. andrew >> thanks, becky when we come back, the recent slide on tech stock has taken a big toll on some investors. robert franks joins us with some of the big numbers and the nft that brought it around the double-digit expected price. double what they were planning for. you got to see this to believe it "squawk" returns after this. 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 search interest since at least

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back to "squawk," tech sector volatility causing the fortunes of some tech billionaires to change dramatically robert franks joins us with more on that story, robert? >> good morning, andrew, the recent drop in the nasdaq erasing more than $1 trillion in shareholder wealth elon musk down about $30 billion in the past month with that decline in tesla shares. he's now flat for the year on existing shares.

of course, he continues to receive billions from that giant pay package. and he's still the second richest person in the world around 170 million just behind jeff bezos bezos' net worth is down $7 billion for the pa month, 2 billion for the year he's raising a lot of cash he just sold $1.7 billion in stock. bringing the total for the month to over $.5 billion. all of that prearranged shares sales. his net worth still at $188 billion. another smart seller, alex karp, the ceo of palantir. karp received options and grants worn $1 billion last year. finally, eric yuan ceo of zoom

he's sheen down $6 billion before the big decline, he transferred 40% of his shares or about $6 billion to shares trusts and undisclosed recipients the company is saying all of that was for estate planning reasons. andrew >> pretty wild pretty wild. but we also need to ask you about the big night for nfts at christie's because that set of nine cryptopunk told for $17 million which is roughly double what people had expected, right? >> yeah, so, this is now what is believed to be the second highest price ever fetched for an nft technically, this is a series of nfts remember, the cryptopunks are a set of 10,000 crypto characters created by an algorithm at a

lab. there are only 10,000 of there are nine of those in the 10,000, one is an alien. previously, one of the aliens told for $7.5 million. is it crushed ait $17 million. it the nft community said that price was too low. one of those was a rare alien. the whole raging main yum, and estimated $3 million sold for $90 million, showed the nft market which had shown signs of cooling but the overall collectible market which soars higher >> robert, the $17 million nft, the set there, can they now break that set up if they want and sell them off separately is one or two of them more

valuable than the collection >> yes and yes. i suspect, you know what we saw with some early beeple sales, beeple with the record of $69 million with his nft that also sold at christie's, previous beeples had sold we don't know who bought this. maybe we'll find out and have that person on "squawk box." yes, that is a common practice it's likely somebody will split off the alien or one or two other characters and sell them for even more. >> wow, robert frank, educating us on the world of money big money, we should call it robert frank, thank you, appreciate it. joe. >> you've got your eye on one of the punks, andrew? which one caught your fancy? >> just you. just you >> no, one of the cryptopunks. i got it, i just -- well, you know what, are there any that you've got or eye on

which one that you saw how many were there? >> well, there were nine, right? >> i don't know -- yeah, but what's the coolest -- what's the most valuable one, do you think? >> i don't know. >> alien >> it's in the eye of the beholder >> 17 million. so those little things are worth like 2 million apiece? >> i think i like that little guy what do you think? >> the guy with the sunglasses >> i need more -- >> the hat backwards >> i'm not -- i've got to think about this i need this explained to me a little better, i think bitcoin, i understand. this is maybe a bridge too far i've got to work on it coming up, several states declaring an emergency over gas shortages resulting from the cyber attack on a major east coast pipeline brian sullivan has the latest. do you know whether you have odd

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♪ good morning, everybody. welcome back we're going to take another look at the futures this morning because, yeah, things are looking weaker but not as weak of a half hour ago. stock futures down about 65. remember, the dow was the worst performer yesterday. down by 1.3% a loss of more than 470 points s&p is indicated down, too only 8.5 points. nasdaq weaker earlier, indicated down by 50 after that massive turnaround and almost ending the session yesterday. joe. >> thanks, becky an update on the cyber attack on the pipeline the localized gasoline prices

could get worse and prices could jump even more if the pipeline isn't restarted by the weekend brian, do you really think we ought to top our cars off like today? >> no. >> don't worry, it's not going to happen? >> i'm saying that because the gasoline distributor we interviewed in "worldwide exchange" said that i know it's different here in new jersey, joe, as it is in the south but when they declare states of emergency, joe, as they have, what do you think people are going to do? right? i mean, i'm not knocking any of the leadership, but if you say state of emergency, possible gasoline problems, what do you think is going to happen >> yep you're going to see that you're going to see some lines >> yeah. >> what's your license plate, odd or even? i have no idea >> no idea at all. but as i said on "worldwide exchange," my dad opened a mobile station from 1978 to 1981

or '82 i used to work there when i was 9 years old. i think saw fist fights, right the tanker truck would come and only be able to provide a third of the fuel. i don't know if we're there yet. all right. let's jump into prices, joe, we'll go back and forth. prices are already up. you talk about rising prices, joe. well, prices are already up. a lot is due to natural demand a lot of us are driving more and the switch to the summer driving blend where they drain the tanks. and then the regional shortages. okay, not panic. regal shional shortage some stations are out of some kind of gas. octane, you can see the numbers coming from gas buddy. so if you're hoping for immediate relief once the

pipeline comes back online, you may have to wait a little bit longer than the next day including as you said, joe, maybe up to more than a week for things to get back to normal because of the back log, the inch worm effect from all of the knock-on effects all right. so when exactly might the colonial pipeline be turned back on it's the question we all want to know we don't know, we're not sure. but according to energy secretary jennifer granholm yesterday, the colonial is expected to come out with some kind of a decision on fully resuming operations by the end of the day today not that they resume operations by the end of the day, joe but that they should say when they plan to resume operations by the end of the day today. but, remember, they said this, i think it was monday noon, it's now wednesday morning, we're not much further along it's been hard to get information, a lot of calls and emails, of course, to the company there.

so, no real information, but it's going to take some time once they even open it back up for everything to kind of work itself out. >> getting a lot of tweets about gloating tesla owners that are like waving at people as they're laughing and beeping as they're passing the gas lines. >> yeah, i mean, but, okay, but we saw a similar situation when the power goes down in certain spots. >> right and then you got the opposite. >> you got a full tank of gas but you can't charge your car like you're in texas you've got an f-150 that goes 450 miles, you just topped off, the power goes off i mean, i don't think anybody should be gloating but you shouldn't be hoarding gas. yeah, gas is shortages in certain areas but it's that knock-on effect where everyone cease the lines of fashion and says we better get in line get in line. >> okay. >> look at that.

>> brian, the transition to ev and to renewables and everything, let's just make sure we're ready when we do that. this is an example of, you know, chevron and exxon, they've got to keep drilling for a while, right? can they keep drilling for a while? let's keep the pipelines going for at least a little while. for at least this year before we just turn everything off and go to electric. >> let's be very clear, okay it's not just the colonials in focus now, joe, plantation runs parallel keystone, let's hope that keep operating. the courts are going to make a ruling on the dakota access pipeline any day now about whether it should be shut down for a new environmental review that could come down any day dakota access, a massive pipeline and michigan, today is the deadline that michigan said it was going to shut off a pipeline

to the mackinaw island they're not going to shut it off today because it's in appeals process in the courts. it provides half of michigan's propane. canada is freaking out because that pipeline provides them with a lot of refined products as well all of a sudden, you've got pipeline problems all over the country. the keystone xl, cancelled the keystone still runs. this is -- i think infrastructure is infrastructure, joe. >> well, we know what infrastructure is now, brian, it's everything. so, anything you want to spend money on is now infrastructure summers in michigan are amazing, as you probably know or have heard. especially up there where you're talking about, mackinaw. cool, not humid. gorgeous beautiful. thank you, brian sullivan. >> dunes thank you. you're welcome >> @sully.

i think that's his tweet becky, do you know @sully -- >> brian, what is it, are you still there? >> it's @sullycnbc >> try the big "c" in clyde south of mackinaw. with a bp next door. >> right love the flyover state anyway, when we come back, we'll get today's biggest stock movers including this big jump in shares of fubotv. got to be careful when you say that one we'll tell you what's happening with that stock up 20% later, the "squawk" newsmaker of the morning, senator mark warner will joining to weigh in on the cyber attack on the colonial pipeline anwh wd ate need to do to improve cyberprotection for everywhere in this country we'll be right back. you.

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welcome back, everybody. got some stocks to watch this morning. first up, shares of electronic arts are higher this morning after the video gamemaker reported earnings of 20 cents a share and revenue of $1.5 billion. current guidance was short of wall street's expectations, but they did talk about how they're continuing to see strong

numbers, strong growth, as people are continuing to gain even as the economy opens. you that will be the question, will the gamers stick around after they can go out after the covid restrictions drop. stock subpoena then there's share of fubotv, when we say soaring, we mean it with the stock the internet stork has been a favorite of traders. amid the gamestop saga the company reported a loss of 59 cents a share that was not comparable to the analysts' estimateds. that stock up by 20% hard to explain a move lake that but there it is. andrew >> rich greenfield cannot be happy this morning because he's been so vocal about that company and what a short it is but, you know, if you're on the wrong side of the trade you're on the wrong side.

vizio posting a profit of two cents per share. revenue coming in $26 beat estimates of 1.5 million expectations coming up, we're going to talk about this thing on my finger you know i love sleep more than anything the oura ring, i happen to be a fan. the ceo is going to join us with big sports news in aine. 'll talk about how much deep sleep and rem sleep we all had last night back in a moment before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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welcome back to "squawk box. many of the largest sports

leagues turning to wearable technology to closely track the athletes in the technology nba, wnba, ufc and nascar making a partnership with oura. it's great to see you this morning. we talk about your ring. we talk about it all the time. i stack it, as they say. i can tell you my readiness this morning is low i'm only at a 76 today i also have a, what's called an 8 sleep bed and i wear the levels thing and i do all sorts of things to track all of this but i want to talk to you about what's happening in the sleep tracking business. you raised a lot of money. it's becoming a bigger business.

does it expand to be a larger franchise? >> thanks for having me on the show, andrew good to see you. look, i think it's a really good question sleep like you mentioned earlier, adoption from a lot of sports team, athletes, even the jets is sporting an oura ring. bill gates to jack dorsey to marc benioff frankly, most people, most of our customers look like me and you i saw rick santelli wearing one recently i think it's because people like us are realizing that with better health, we're going to have a better life there's a lot that goes into that there's sleep, there's activity, right? there's diet and even stress and meditation i think consumers are waking up to that. it's definitely extending. wearable use cases we do track activity we've even shown that we can track things like meditation and show you the quality of that

even our work during covid, ones that have temperature sensors can be extremely helpful to identify the onset of illness in advance. you'll see these cases of wearables keep expanding frankly, that's going to keep driving consumer interest. >> so currently this is relatively a consumer product. the question is do you think it becomes an enterprise product? you just mentioned some of the folks who wear them. bill gates wears one all the time jack dorsey wears one all the time do you think big companies, i know in the way of sports leagues doing it, do you think big companies are going to ultimately either ask for or otherwise request people to wear in do you think there will ever be a moment where you will tie this to insurance in the same way like progressive, for example, will lower your rate if you're wearing -- not if you're wearing something but, you know, if you allow them to effectively track

how you drive, for example >> yeah, look, i think it's already happening. in fact, in nearly 20% of our revenue last year was actually sold through the enterprise or b2b as we called it. earl s&c coaches and we have used department of defense between airpo force, army and navy the health and performance of their soldiers is critical i think you're going to see this ex extend the reason is corporates today are running into a majority of cost of health care. unfortunately that keeps increasing data showing wearables and other things if you are sleeping well, if you are exercising your cost of health care is likely going to be lower. it's obviously beneficial to the corporation, to the individual certainly to be getting these

subsidized and into long-term health outcomes. we're seeing that outcome. data privacy is a tricky thing we have good framework and i think force is a strong word i'd rather say encouraged, shown the benefits of, subsidized. i think when consumers start to realize hey this isn't big brother, there are protections in place for me to make sure my data is in my control, but my corporation wants me to be healthier just like i subsidize my gym membership, my peloton, absolutely lack of sleep is exhausting. poor productivity is huge, right? so i think corporations definitely are getting more and more open to it. we're already seeing it in terms of revenue. >> in terms of just the business model, there's a couple of folks doing different ways you sell this as a one-time thing. i think i paid 299 for this one, maybe 399 for this there's something called the whoop band which competes

directly it. they are doing a sort of -- doing it as a subscription service. over time how do you think these things evolve? by the way, you know, i'm still surprised by this. i know apple has a sleep mechanism on the watch but do you worry about the big guys coming in and taking over the business >> i don't right now if you look at health based wearables, there are 200 million units sold a year. i think in order for sort of 200 million units to get to smartphone penetration you have to see use is this going to tell me i need to call in sick like oura does health watching expands, you'll

see the market expand. when fitbit launched sleep tracking, they didn't used to always do that we saw our sales go up it's early data for consumers to watch this work. in terms of vendors, rising tides. >> we have to run. i appreciate it. as i said, i use this thing and it's changed -- it honestly has changed the way i sleep. not my sleep quality but it numberings me when i clearly don't sleep enough and that helps a lot. thank you. we look forward to following your progress. i wonder what's going to happen to your company? is this an ipo do you ultimately sell this company to somebody else >> i think there is a lot of room for single business to evolve and a lot of investor appetite. >> thank you so much michael dell will be very happy with that. lance armstrong, by the way, an early investor in your company.

>> yeah, that's true that's true. >> joe >> thanks for bringing that up coming up, don't miss our interview with interactive brokers founder thomas peterffy. "squawk box" will be right back. it's hard to hope, hard to cope with crisis. so we get to work. we mend, fighting for every person in every neighborhood; we, the coming of the common good. so dare to care, to be hope-sided. we're never divided, when we live to give, we always live united.

pipeline problems, gas line shortages and a long line to recovery the colonial pipeline remains shut down. the latest when it could start is straight ahead. big tech's wild comeback break down one of the biggest recoveries in history. plus, the founder of wall street bets joins us to talk about the rise of the retail investor, new blockchain and how he's looking to level the investor playing field. the second hour of "squawk box" begins right now

good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. we're still 2 1/2 hours before the market is set to open. we are set to open down 130 points down on the dow the nasdaq looking to open down about 88 points. here's what's making some headlines at this hour covid-19 vaccinations could be extended to children under 12 years old later this year. that's the good news white house officials saying they expect to have data on that age group by the late fall the fda approved the use of pfizer's vaccine to 12 so 15 years old. meantime, colonial pipeline workers are manually looking to release stored pipeline gas. last week a ransom wear attack halted 2.5 million barrels a

day. it is said it is hoping for full restoration, they say, by the weekend. the surge in home prices is occurring pretty much everywhere national association of retailers said it was higher in all but one of the 183 areas prices up more than 10% from a year earlier let's get you straight over to dom chu who's looking at the unwinding. tech names in the art innovation fund dom? >> a huge focus for traders. this particular ark innovation etf has been a proxy for the tech momentum trade that's been happening overall. the nasdaq composite over the course of the last 24 hours. you can see here shortly after the opening bell at the lows we were down roughly 2.2% on the interday basis we closed just about flat on the day so far that shows you just how far we've come on the interday

basis. with regard to the ark innovation, the etfs were more pronounced we were down roughly 5% on an interday basis we closed just about down 1% still you request see the pre-market trade now we were just about up on the day so far so a huge move over the last 24 hours to kind of show you how much dip buying there was in this particular etf. the stocks you want to watch, the four biggest ones make up a large portion of this particular etf. 1/4 of it. tesla shares off 1/2 of 1% teledoc held flat. it was a huge move higher. it was up 4% or so roku shares down premarket trading and square as well these four particular etfs have a huge portion these three names, teledoc, roku and square were higher well off their lows.

one place to watch, shares of palantir we're highlighting this because it's up 1.5% in the pre-market trade. ark innovation and ark etfs put out their daily trades monday through friday those particular etfs bought 2.8 million shares of palantir on the dips they're a huge move higher and still up 183%. palantir a focus as well one of the key stock pickups that ark innovation made in yesterday's selloff. back over to you. >> i added that, not palantir. still don't have that. on my list on my phone of what -- i've got ark on there now. i guess you've got to. a lot of things keying off of it it covers a wide range. >> you know, joe, on twitter, people constantly ask me why do

we focus so much on this ark innovation etf, it's because it's been such a crazy ride to the highs we saw and then 1/3 of its valued loss in the course of the last couple of months. still, joe, it's one of the most searched tickers on cnbc.com it's constantly now over the last few months within the top 10 to 20 tickers the only real etf that's searched outside of the index ones like the tech spdr and others >> it ended after dogecoin the world -- whew. it's almost a faang equivalent that you can watch real time not exactly. >> on my screen. there it is. coming up, the founder of wall street bets launching a blockchain app designed to tackle issues in traditional finance and democratize the markets instead of someone picking what's in your exchange

traded fund, it's kind of a blockchain answer to that. it's going to be cool. need some explaining got some explain to go do. they'll join us after the break. futures down 111 and the nasdaq, quk x"74 that, down about "sawbo will be right back.

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welcome back to "squawk box. this is a cool piece of news this morning the white house is now partnering with uber and lyft to provide free rides to and from vaccination sites until july 4th. white house covid coordinator detailing the new steps in a call yesterday with governors featuring a launch in the next two weeks. the administration's been looking for ways to incentive advise people to get vaccinated as demand has eroded in the next few weeks. uber and lyft stepping up to help them do that. pretty cool thing. let's see if it helps get more people a jab as they say becky? >> thanks, andrew.

softbank reported the highest annual profit. $45.9 billion was fueled by a series of blockbuster ipos including 40% stake in coupang they had a gain of $8.5 billion from the controlling stake in sprint and the rise in the value of the remaining holdings. softbank's rise came after the close in tokyo down by 3.5% when we come back, the founder of wall street bets, plus, gas lines are growing on the east coast and things could get worse if they don't reopen the colonial pipeline by this weekend. gas prices spiking overnight a live report comingup and then moelis advice chair eric cantor will join us the president's tax plan and the market implications, his

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now the answer to today's aflac trivia question. before founding zoom, founder eric yuan worked at what company which was later bought by cisco? the answer, webex. when the company was bought by cisco in 2007, yuan was appointed vice president of engineering. a founder of the subreddit site wall street bets has launched a blockchain app featuring exchange portfolios. joining us, jamie roginsiki. famous you tweeted out you were going to be on and i appreciate because i want all these people, all these followers, i want them

all watching "squawk box," but can you ask them to be kind? would you mind i do not -- i can only speak for myself, but i don't want to wear a jacket so i am not a suit. so can we make that clear right from the start >> as you can see, i'm not also wearing a suit but absolutely. look, i think the idea is to get a lot of people in the crypto world to watch cnbc, right this type of product that we're launching is the merging of efts and blockchains with traditional wall street. >> it's fascinating. i spent some time on it. the amalgamation of blockchain with the financial markets so the way i understand it, and we've seen that a lot of people didn't want to be mobilized or didn't want particular call ets and this is a way to do a

decentralized etf where the community decides on the makeup of the exchange traded portfolio using blockchain, tokens, smart contracts which allow them -- is it necessary to get away from the wall street dominance over exchange traded investments so that you can do your own because you've got to push back on the man again, jamie? is that the whole idea >> look, it's not necessarily to get away, it's to try and improve the system we know the benefits of blockchain we've seen it over the years, the transparency, security of it and democratization. we've also seen a merging of the blockchain with regular wall street and coin base is going public which makes it a nice, symbolic gesture. you're starting to have synthetic stocks on the blockchain we're getting ahead of the curve with this taking the power of community to be able to come

together to vote on a regular basis much more -- in a much more nimble manner to rebalance the etps and etfs and combining asset classes from both the crypto world, like the crypto coin like dogecoin, i guess, if you wanted to put it in there, bitcoin, ethereum as well as regular stocks or even etfs. so pretty much the range of possibilities is unimaginable. so we're really excited to be able to get this ahead of this and to really further empower the people and further democratize finance. >> jamie, you created something, i mean, obviously. can you comment on this? are you no longer on reddit because u tried to -- they decided they didn't want monetizing what was going on is this your way of monetizing the incredible space that you basically created?

god bless you if it is i'm not saying it's a bad thing. are you going to make money on this thing is this your baby that will be a big money maker for you personally >> i hope everyone makes money with this. i definitely am going to make money with this. everybody that gets involved is able to make money in this everybody who gets involved with this is able to get empowered with this. what happened with reddit is not public i sold those rights to a movie studio the idea of what i did with wall street bets community as well as what i'm doing with this w wsp dapp is to push it and continue to empower the retail, small guys that are able to participate in the market the way they haven't been able to previously. >> did you watch closely the recent hearings on what legislators or regulators might decide to do

were you gratified were you fearful do you think they understand and are behind you on this to have a soft touch >> i truly do believe in the regulators' ability to try to fortify and strengthen a system to identify the weakness they have a really tough job ahead of them. what they're looking to do is make sure things are fair and functioning properly i'm not worried what they do i'm hoping they can catch up withtechnology fast enough so they can continue to empower and protect just the entire integrity of the stock market. i do believe na we saw it with bitcoin. we saw it a little late to the game they're able to regulate and control a little bit the closer you get your money to a bank account, the more involved regulators are to ensure there is no fraud or things of that nature. i believe that instills trust and that's a good thing. i did watch the congressional hearings and i thought that they were very productive and i'm

hoping that they're able to go out there and make some changes. i'm also hoping this type of technology does it from the private sector as well the moment that you have competition and challenges, the status quo and challenges the way things work, for example, the t plus 2 settlement gig, this was the idea behind the robinhood debacle where they stopped trading gamestop, that doesn't happen blockchain has instant settlements. hopefully as we introduce this and companies decide to start leveraging this blockchain technology, it will force wall street to become competitive much like robin hood forced other brokers to become free as far as commissions are concerned. >> jamie, just in a macro sense with it, you describe a new era for retail investors and all the things that go along with it now and yolo you know, i made a lot of money. whoa, i lost -- look how much

money i lost i don't know whether it's game f fied things are going well and some people have still lost great sums on some of these bets what if things really did turn south? we couldn't turn away like in the financial crisis we turned away a whole generation of investors from wall street and investing. couldn't that happen again with a frivolous sort of approach to all of this? is it really ushering in a new democratization? >> look, you didn't turn down an entire generation, you created an entire generation a lot of language around there was revolved around this idea of centralized power, centralized government and money, et cetera, et cetera. you also have this new demographic of market participants, younger millennials that are taking the market from their own perspective. it's a zero sum game people will lose and make money.

warren buffett loses money the idea is now you or the individuals are able to take control and lose their own money. as far as what's going to happen if the market goes up or down or whatever, they don't care. bubbles, as far as i'm concerned, is a boomer term. if the market starts going down, kids go from buying calls to buying puts, they need to know which direction to bet the market in. that's something they can do through this wall street bets dapp that they can see on wall street bets.net. they can vote and rebalance these things on a regular basis in a transparent manner. >> a boomer term i resemble that remark, jamie. i should sue you for defamation of character i think some of the things that you mentioned warren buffett, that he said and maybe charlie said about gamefication in the media, what did you think about those comments

they're not boomers. they're the greatest generation. >> they're really good they can co exist. there's no threat to any participants you have the fundamental investors like warren buffett, they can do their market valuation, discounted cash flows, whatever they do to find a good investment. you have hfcs, technical traders looking at charts and you have these guys that are meme stock traders. they've proven they can turn it into a profitable strategy and they can all co-exist and make money as aggressively or as risky as they want to do. >> jamie, i -- cnbc, this is the beginning of a beautiful relationship with you. my hard questions were just, you know, as devil's advocate because you had to shut down some stuff it gets so nasty on twitter and on reddit and it's just not right, what we see so i'm afraid to check my

twitter feed i'm not a suit did i mention that earlier bring all of your people to us i think andrew's got a comment, jamie. >> jamie, the one -- the question i have, maybe i'm going to sound like a boomer myself with this -- >> oh, no! >> even when you look at the gamestop scenario or any of those type of things, typically what's happening is even when it appears on the outside that the wall street bets community, if you will, is quote, unquote moving the market, what seems to be happening if you're looking at the flows is you have the professional class, the suits, if you will, that are riding on top of or trying to anticipate or trying to leverage or frankly take advantage of some of the folks that are on these platforms because the suits can move faster. and so i just would sort of wonder how you think about that? i recognize the idea of the

co-existing but i recognize somebody is going to win, somebody is going to lose, somebody is going to take advantage of somebody over somebody else. it's unclear to me whether both can actually win at the same time. >> look, they most certainly can win at the same time it's a game of cat and mouse i think it's good the larger institutional participants can do it. it's a game of cat and mouse here you have millions upon millions of risk hungry individuals that are looking for inefficiencies in the system they try to exploit it gamestop, i'm talking about the millennial generally ner rags, the meme traders some hedge funds made money. what we saw is some of the hedge funds decided instead of try to beat them, to join them too. what's going to happen next, they're going to find a new exploitation, new weakness, jump on it and try to profit. let the other guys go in there as well. that's the beauty of a free

market every time it happens it becomes stronger any time you find the inefficiency, they reduce them and that's what happens with arbitrage and that's good for any healthy, functioning market. >> boomers and millennials can we call -- jamie -- >> absolutely. >> really? they said, talking to me, by the way, we don't bite all hail all hail jamie you're very -- all right great having you on. nice meeting you. >> thanks for having me on >> you're welcome. >> likewise. >> we'll see you becks. >> bye-bye. >> they don't bite but they do bark >> exactly. >> still to come on "squawk box" this morning, former house majority leader eric cantor will join us to talk about president biden's tax and infrastructure plan and what it means on the economy. up next though, lines at gas stations in the southeast growing as panic buying ramps up frank holland has a preview of what's up next frank, how are you doing this

morning? >> reporter: hey, good morning, becky. we're here in the atlanta area, one of the areas hit hardest by the ransom wear attack on the colonial pipeline. we'll look at shortages, what people are doing, d ataaanwh a says you should and shouldn't do that and much more coming up on "squawk box.

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believe it or not gas lines are starting to form in some parts of the country because of the colonial pipeline. the concern of the shortage happens too. frank holland is joining us. it's been so long since people have seen lines at the gas pumps. last time i remember it was maybe hurricane sandy. >> yeah, good morning, becky a developing situation with two big extremes one of the extremes you're seeing behind me this is a gas station that has diesel but they ran out of gas for regular cars they have yellow plastic bags over the pumps and many stations in the atlanta area, they've changed their signs. they normally show prices to only show zeroes so people know not to even come in and try to get gas. then you have that other extreme, really long lines of people waiting to fill up their

tank this is some video that i actually took in the atlanta area southeastern states hit especially hard by the disruption i spoke to several drivers who said they felt they were confident this was only temporary, it would all pass, but they just couldn't take any chances. they needed gas to get to work, they needed gas to get their kids where their kids needed to go the red canisters many of us have in garages popping up everywhere as people are stocking up on gasoline. aaa is urging drivers only to buy gas out of need. >> we're 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 then plan along the way to get gas, but don't wait until the needle is on empty begin to sort of plan ahead a little bit channel your inner boy scout and always be prepared >> of course some people said they're worried about the

prices they didn't necessarily need a full tank at this moment but they were worried about that price escalating when you look at the prices from a week ago, a month ago, even a year ago, you're seeing dramatic increases. just a week ago it was 7 cents cheaper. a penny or two we don't notice, 7 cents you'll notice and people are responding to that. >> fair and rank, we've been toe department of energy that they should expect they could make decision whether to restart the colonial pipeline. what have you heard from other people along the way, maybe some gas station owners, maybe any distributors in terms of what that would mean if they were able to say, okay, we're going to turn things on tonight, tomorrow morning, how quickly could things be back up and running? >> generally here at gas stations, general managers aren't that involved with the actual distribution. i'm going to lean on the reporting of brian sullivan who said gas goes along that pipeline at 5 miles an hour.

they have reserves along the way. right now it's not 100% clear how long it would take to quote, unquote, get things back to normal if it starts back up, we know it will go away will people start lining up and will prices go down? >> yeah, there was a distributor on wex earlier talking about that whole idea, blaming it on the surge of people running out there, the panic for the reason that they're actually running into trouble at this point, too. we saw things like toilet paper at the beginning of the pandemic frank, thank you we look forward to more reports. >> hand sanitizer. >> right it creates the problem itself. thanks, frank. coming up, president biden is meeting with congressional leadership today to discuss his infrastructure plan. we're going to speak to eric cantor, vice chair of moelis and company. we'll talk about the president's proposals and the impact it could have on the economy. we head to break, here's a look

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this morning president biden meeting with congressional leadership to discuss the white house infrastructure proposal. ylan mui joins us with more. >> good morning, andrew. this is going to be the first time the democrat and republican leaders on capitol hill meet with the president at the white house. the discussion will be focused on infrastructure and the administration says that biden wants to look for opportunities for common ground while avoiding what white house press secretary jen psaki called interparty squabbling but some of that squabbling is over how to pay for infrastructure chuck schumer said yesterday his message to the president will be to go big and go bold and he pointed out that raising taxes on the rich and big corporations is popular >> there are so many large corporations and very wealthy individuals that don't pay any taxes at all, we have to do a lot and we want to do this there's overwhelming support in our caucus for a tax system that is far more progressive.

>> reporter: but this is not the only big meeting with lawmakers that president biden is having this week. he's already met with key democratic senators, joe manchin, krysten sinema and tomorrow he'll be hosting senators with a very different set of talking points. >> there is a red line for the republicans in our proposal for the white house and that is the tax cuts and jobs act of 2017. we will not be touching that, period. >> reporter: senator barrasso said they are approaching the meeting in good faith. it's unclear how long they are giving the bipartisan talks time to play out. >> that is the truth ylan, thank you very much. right now let's welcome eric cantor he's the former congressman of virginia who served as house majority leader. right now vice chairman and managing director at moelis and

company. there's a lot to talk about here you've been in the room. you've been in these situations before when you hear bipartisan talks, how seriously do you take it right now? i think we've lost eric. it probably sounds like a bad connection there but obviously this is a big issue. we do want to get eric's thoughts on this i think now we'll take a quick break to try and get him back up and running so he can come back and talk about exactly what he sees happening with bipartisan talks and where it leads the administration andrew >> okay. and then when we come back after that we're going to talk about some of the top holdings in the ark innovation fund in what is the tech selloff should investors run for the exits or is this a buying opportunity. we will discuss all of that at the top of the hour. protecting america's infrastructure from cyber attacks. senator mark warner on the impact of the colonial pipeline

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let's try this again we welcome eric cantor he's the chairman and managing director of moelis and company where things stand, the potential for bipartisan talks between the two sides. you've been there. you've been in the room.

you've seen how these things work and you're able to read temperatures what do you think the odds are. >> first of all, becky, i think it's high time the leaders meet with the president it's four months since he's assumed office this is the first time he's meeting with the big four. this is unusual. even back in the day when president obama was elected, we were meeting with him even before he was inaugurated. it is interesting. i'm glad the president is holding this meeting you know, i think there are a lot of reasons why you would think maybe there are forces in play -- at play where there can be a bipartisan agreement. number one, it's slim, slim majorities the democrats have in both the house and the senate. it doesn't -- it doesn't seem too easy for them to be able to put something together to bring along the likes of joe manchin and the senate and the house that's number one. i think it would be a lot more

beneficial to the country if there were some bipartisan agreement. number two, on the side of my party, there are a lot of people on capitol hill who want to preserve the tax cuts. not to disrupt the great economy before the pandemic is to preserve those tax laws. the only way i see for them to have a shot at doing that is to participate in a bipartisan negotiation. >> but, eric, let's talk about the realities of this. the two sides are so far apart right now. you've got mcconnell signaling that maybe he could see a $600 billion infrastructure bill, maybe an $800 billion infrastructure bill. that is so far off from the $2.25 trillion bill. i think once you get to the

point where it's too toxic for democratic leaders what does an actual -- you know, cutting through any talking points, cutting through the rest of this, if you were practically sitting down, what does an actual bipartisan deal look like. >> i do think that the red line in the sand for republicans is they're not going to participate in any tax increases as mitch mcconnell said, he is not interested in changing the tax law to disrupt an economic recovery after the pandemic. so i think that where the parties do have things in common is on the infrastructure piece itself, when you take out the expansion of government programs and, frankly, a lot of give aways on the part of the biden proposal, when you get down to hard, physical infrastructure itself, maybe put in some broadband in there as well as grid upgrades on the electrical

front, i do think that the parties are not that far apart so i would see a potential for a bipartisan coming together, if you will, in the range that mitch mcconnell is talking about, perhaps republicans go a little bit further when shelley capito leading the charge goes to the white house tomorrow. with that then there will be a discussion about the paid fors red line in the sand, i worked with the president, he was vice president at the time, he understood full well that the republicans were not going to raise taxes back when we were dealing with the debt ceiling, see quester, all of that he understands the political sensitivities. there are ways to come up and pay for the bill that are not tax increases. >> you know, eric, the democrats do have some trouble within their own party. they've got a progressive wing of the party that's pushing really hard to get some things done that republicans would never agree with republicans have their own issues right now too

you have liz cheney who's the highest ranked woman in the house this morning is going up against her colleagues if she loses her stance this morning, a real question about the party who the leader of the party is is it still donald trump what do you think will happen? will the house strip liz cheney of her conference chair this morning? >> well, becky, from everything that i'm hearing, i do think that we' going to see liz cheney lose her position i think she expects that to happen as well, and, you know, the irony of all of this is the issue does not go away the issue that liz has sort of put her stake in the ground about and that is that we are a country of laws and that there is a constitution and this talk about a rigged and fraudulent election and the fact that there isn't a freely, duly elected incumbent at this point, those points, that discussion is not going away we saw in the senate now the

senate is moving to try and bring up hr 1. we've got states all over the country passing election laws. this is not going away so, again, i do think when you're in leadership, you're elected by not only your constituents at home to serve in congress but you're also ee lented by the members that put you in the leadership position frankly, she's out of step with the bulk of the membership of the republican conference. >> she's out of step of the bulk of the congress because she thinks biden won the election? >> well, i think it's perhaps more pointed to say that she's out of step in that she wants to make sure that this issue of pushing back on these fraudulent claims stays in the public domain and in the top of minds of republicans, whereas, republicans do not share that view they would rather just work alongside donald trump to reclaim the majority in 2022

so i do think it's a matter of priorities that liz sees in a different way than the members -- the bulk of the members. >> eric, are you part of that bulk of the members? do you believe the election was a fraud? would you kick her out >> i'm disappointed that you haven't read the news back around january 6th because i had an op ed in the washington post where i spoke very strongly against the spreading of falsehoods and the lies and i feel very strongly that we are a country of laws. our constitution designates and lays out a process for elections and all of those things have taken place and, no, i -- i do not think that -- i certainly don't agree with what's going on, no >> so you don't agree with what the party's doing to liz cheney? >> that is correct but, again, i said to becky, the dynamics of

being a leader and being responsive to one's constituents, that's where the bulk of the constituents are. >> eric, i think -- did president obama, he said don't push me, eric? did he say elections have consequences to you? was that because here's my question we hear from -- we just heard from schumer and we hear from reporters and members of the media that it's really, really popular. everyone wants higher taxes. very popular higher taxes on these, you know, fat cats, higher taxes on corporation. elections do have consequences and biden won. do you believe that? so why not raise taxes it's popular, we're told, and biden won. so taxes should be raised, right? >> all of a sudden there's this new definition, joe, about partisanship it used to be bipartisanship took the two sides working together here in washington to make sure they drove consensus on a piece of legislation. now all of a sudden this administration and president

biden have said, well, if we take a public opinion poll, an we know about those polls, and we find that most republicans or people say something, they said to me elections have consequences we have the ability to push and ram something in it. it's raising red flags and damaging prospects of growth coming out of the pandemic again, i think the bipartisan route will be the best in the country and i'm hopeful that the white house will undertake that. >> eric, it's good to see you this morning thanks for your time >> pleasure. good to see you.

meantime, a big reversal for big tech yesterday the nasdaq rebounded, so did the ark innovation etf it's still down sharply over the past three months. joining us to discuss whether any of these are here. good morning to both of you. >> good morning. >> good morning. >> it's a large question of what's happened to arkk invest has forced the sale of these stocks and whether that is -- i don't want to say artificially depressed them but has it a artificially depressed them and therefore they should be buys? >> i think we have to think about the backdrop of why we're thinking of high tech, high valuations and tech selling off and the arkk fund as well. we are reopening faster. liquidity is ample the economy is growing we know we have great gdp with great personal consumption

numbers of 10.2% last week we got the jolts numbers yesterday which are incredibly high at 8.1 million. and since november 2020 when you have better growth, a little bit more inflation and creeping higher rates, that's usually a recipe for value to outlay growth momentum is always great on the up side. you can kind of justify it with total addressable market comments and commentary. i've done it myself. when it reverses, it's very, very hard. there's not a lot of valuation support. i think of all the names that she owns, i think teledoc is actually the most interesting one, especially given their specialty businesses and what they are doing in behavioral health it's not cheap but if that one comes down, i think that's the one of all the names that is interesting to me. >> gene though, before we get into the fundamentals, do you see a connection between obviously what's happened to tech -- the tech wreck, if you

will, but also do you believe it's effectively being pushed even more so by the unwind in arkk itself? >> i think there's a -- definitely a psychological impact here. the top holdings of arkk innovation have a market cap of call it $800 billion if you look at arkk's holdings, their percentage of that is about 1.2% so if we look at the recent outflows of arkk, it really doesn't pass the initial test that this is causing the selloff in these disruptive high growth tech names i think there's a psychological impact, the incredible success that arkk has had. innovation fund, 88% over the past year. because of that success, i think it highlights and i think it creates a trading dynamic around these companies where i think you see potentially short sellers and other people put pressure on these names and just

really try to spook what i think has been a growing retail presence in some of these. they far outweigh arkk's percentage ownership i think it is very real. i think the arkk effect is very real and i think the substance of what's happening is the success that these companies are having more recently in the march results really have come with a muted response, a negative response from at least the share price. i still believe these are great companies. that is kind of the arkk effect in a nutshell in these transformative trading. >> you hear what stephanie said, she likes teledoc. is there a stock you would buy and describe it as a dip >> i think first to pick the dip is difficult it will take three to six months to wash itself out this is a once in a decade tech buying opportunity over the next, call it, six months. to answer your question, here's

a company that arkk has invested in, loup has invested in it's zillow. we look at the open door numbers last night, the zillow numbers consumers want to do this. that will be a company that despite the big pull back i think there's a long-term opportunity. >> stef, we've got to run. how much longer or how much farther does arkk have to fall if at all at this point, do yo think? >> i think the rotation is real, andrew i think we can continue to see value outperform growth. you're going to have up days like yesterday but for the most part i think you have a little bit more to go on the down side especially on technology expensive stocks in general. >> okay, gene, stephanie, thank you. appreciate it. >> joe coming up, senator mark warner joins us to talk about the cyber attack on the colonial peline and other issues. stay tuned, "squawk box" will be right back ♪ ♪

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good morning futures red across the board we're pointing to losses at the open a day after the dow suffered the worst drop since february. president biden wants to rebuild american infrastructure but what about protecting the infrastructure we already have like the cyber attacked colonial pipeline we're going to ask chair of the

senate intelligence committee what congress can do right now. we're just 30 minutes away from the brand new consumer inflation data we will be watching this very closely. stick with us as the final hour of "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin thank god food and energy aren't in that and you don't need to worry about that, the cpi, because nothing to see here. u.s. equity futures at this hour, as you can see, down about 85 points on the session the nasdaq indicated down about 70 nasdaq was kind of the star yesterday. it bent but it didn't break. today we'll see what happens

a lot of red as you can see. the s&p indicated 12 or so yesterday. the dow was down 475 points. worst day since late february but tech shares, just eluding to, did stage an impressive turn around basically closed flat after being down more than 2%. treasury yields this morning, interesting. wasn't it? we're just -- if you weren't there friday, it's like, oh, yeah, still 1.6% if you weren't there for that the past two months.when it wa here are some of the stories that investors -- it says here will be talking about today. i don't know if we really know that for sure. it's possible. one is a key legal win for amazon european court ruling in favor of the online retailer in a $300 million tax case

that's one thing eu to leks em bourque or lick ten stein. amazon received an unfairly favorable deal softbank receiving a good quarter. they invested in coupang one year ago the vision fund reported an $18 billion loss and talk about an earnings mover. the shares of fubotv up more than 20% in pre-market trading the sports streamer beat revenue forecasts, raised the full year outlook. fubo's adjusted first quarter loss was wider than what analysts expected. not to be confused with fubar.

>> every time i see it that's what i think. >> you can't help it, right? >> can't help it yeah we touched on yesterday's market -- say it carefully. >> i get scared of that. you need to be careful tread lightly. >> treacherous very treacherous we did talk about yesterday's market volatility just a moment ago. it spiked. our senior markets commentator mike santoli joins us now with a deeper look into the whip saw movements we saw mike, good luck. if you can make sense of that, have at it. >> we can always take a stab at it we can see what it looks like, what the patterns seem to be repeating. take a look. we have a little bit of a hesitant open and a couple of choppy days. the net effect really about four, five weeks of not much of anything we've been churning around here. yesterday the market did hold a vote the lows from earlier in april. maybe that was a small victory i also want to point out from february into -- actually through march, halfway through

march anyway, you did also see the similar pattern, the kind of stair step yesterday's at the lows, the s&p was down 3% from a record high this is not momentum movements under the surface it is a little more violent take a look at the dow versus the nasdaq this might look a little bit familiar february 12th. nasdaq starts selling off hard and the dow still tilted higher. didn't pay much attention until the selloff got deep enough and then the dow did finally succumb a little bit that was near the end of that choppy period and you had a little bit of a rebound. somewhat similar here when you see the nasdaq actually starting to decline right here a couple of weeks ago and the dow kept going up until we got a little deeper, then the dow backs off a little bit it seems like for a while it's like the slinky going down the stairs, one side goes down, the other one follows. it takes a lot more. it's still cyclical leadership it's getting noisy and choppy.

the verticality, we've never gotten down to the 2019 super calm, stable, teens type of level. we were below 20 for a while, popped again this is still kind of a down trend. it's not saying the market is in freak out mode or under any tremendous stress but it's worth watching we're bracing ahead of a big number today as well. >> mike, what about today's consumer inflation data. how does that fit into the market action? if we get a hot number, what do you think happens? >> first of all, i think the market has been pricing in in an upward trend in inflation. this won't blindside anybody if you get a hot number energy, materials and financials yesterday's action was the reverse of what you'd see if the market really, really was over anticipating, you know, an immediate hot number and big impact i would argue that today's number does not solve or really help the debate about whether it's transitory or whether this

is a lasting rise in inflation the bond market will tell you probably if the stock market should worry about it. right now i think the bond market has been pretty much on board that the fed might have it right or at least going to give the benefit of the doubt for now. >> yeah. i will tell you if it's a cooler than expected number i think we're all going to question the data we watch it every day. watching commodity prices goup energy prices go up. all the places you start to see it creep in. >> you have to look at the compensation of the number a lot of moving parts below the surface. >> mike, thank you we'll check in and see you a little bit later today. in the meantime, let's switch gears that's the cyber attack on the colonial pipeline. colognial sent workers to manually release some today. 1/3 of stations in metro atlanta, raleigh, charlotte were without fuel gas prices hitting the highest level since at least 2014, just

as americans are expected to start driving more joining us right now to talk about congress's potential response to the cyber attack is the chairman of the senate intelligence committee, virginia senator mark warner. senator, as the head of the intelligence committee, do you know more about what happened here than we do? >> well, i know that we are seeing gas lines in northern virginia starting last night i know this is a ransom wear attack and it shows that when a criminal element, we do believe this is criminal rather than a nation state, goes against any individual company, no matter how good they are, you can't be perfect all the time my concern is this, we see the effect of this ransom wear attack against one pipeline. we saw last -- end of last year the solar winds attack which was generated by russia that hit 18,000 companies luckily that was only an

espionage where they were trying to exfiltrate information. let's imagine what happened if they were combined imagine you had somebody shutting down 18,000 companies across our economy, we would come to a grinding halt. we have no system in place to make whether it's colonial pipeline, solar winds, any other company actually man dditorily report that. we have to put together a group, we need a real time reaction team and unfortunately we don't have that right now. we are -- cyber is always kind of a boring item until it hits home what i'm mostly thinking of, if you combine the pipeline ransom wear with the 18,000 supply n attacks that took place,

you've got a potential disaster. >> and that's just the ones we know about so you want a mandatory reporting, meaning that if any company is affected, any government entity, they would have to report through and have the best in the business kind of working to help them out with that, but that's -- >> we've got this kind of model. >> that's a long way from feeling safe about things. >> we've got those models in place. the national transportation safety board there are early warning systems in the financial system. we would provide that company with a limited immunity, we'd keep that information confidential we have treated cy cyber unfortunately as an after thought for a long, long time and as you pointed out, the number of companies that are getting hits on a regular basis with ransom wear attacks and quietly paying in bitcoin or other cryptocurrencies i think would shock most folks in business we are potentially seeing now

this -- cyber criminals get better, nation states like russia and china get more exquisite on their uses. yes, there are things we can all do with better cyber hygiene, but a talented first tier adversary against virtually any private sector company, i'm going to probably count that the first chair adversary is going to get the company's defenses. >> you know, you bring up a very valid point that this is something the government should be working on and needs the information. companies are reluctant to do it because of the liability factor. you just mentioned limited liability. what does that mean? the company comes forward and tells you what happened, they're not going to be spons snibl that information is not going to be used against them in civil or criminal lawsuits? >> no. five or six years ago we created a voluntary sharing of information with a limited liability protection we are saying and i think most companies now, even some of the major business organizations now

realize we need some mandatory level of reporting so this, what we're talking about, is immunity to give it to -- an incident response, quick response team. the company still has an obligation to the sec on a breach notification. that is a separate issue we need to make sure we're able to put out these fires real time and not have as we did in the solar winds or microsoft hack, the bad guys inside our systems for literally months without knowing or in the case of the pipeline, this was, again, more of a one off ransom wear but this same criminal group coming out of russia could potentially have used similar exploits to attack a variety of systems and the sooner we know that, the better we can respond. >> you sound like it's something we need to work on but i'm not convinced it's necessarily your top concern. jay powell did say recently, the

chair of the fed, he thinks it's his top concern, cyber security. is it yours as well? >> as chairman of the intelligence committee, this is one of the top three we are working on a broadly bipartisan bill that i think will have enormous industry support. this is --this is unfortunatel for most ceos a secondary matter and we don't build in enough for cyber hygiene, we don't put enough cyber security into the systems that we construct and we frankly have no immediate response system. the idea that these companies are being hit every day on a regular basis for ransom wear or that you have adversaries like russia and china exploiting espionage data, these are two parallel problems. you put them together and you have something that's completely inside your supply chain

the bad guys don't want to take out information but they want to turn off all these systems as you're seeing with colonial pipe lines, then you've got a real economic disaster on hand. this is asymmetric type of battle this is something where a second tier power can take on, you know, the largest economy in the world. >> senator, i want to get your reaction to one other item yesterday we spoke with stan druken miller, the noted investor we were talking about the possibility of over stimulating the economy. this is what he had to say >> i understand why the fed and congress did what they did at the time i think it was the right decision on a risk-reward basis, but when the facts change, you have to change the facts have changed dramatically since then. and, yes, i don't think -- i can't find any period in history where monetary and fiscal policy were this out of step with the economic circumstances, not one.

>> what do you think about that, senator warren >> i think that history will look back and say the fact we put $5 trillion into the economy, 3.5 trillion in that in a broadly bipartisan way prevented an economic catastrophe. we have -- we are still putting out money to businesses, restaurants on a regular basis that will spend out literally over the next yearm much of the money to state and local governments, it's not been distributed yet. to somehow say we should not at this same time recognize if we put an infrastructure in place that that will spend out over the next five to seven years if we don't recognize we are spending 50% less on our country's infrastructure today than 25 years ago, then you just

don't have the facts we are losing -- we are losing our competitive edge when other countries have first world infrastructure to train to road to airports and we have third world infrastructure >> it is an issue and we will continue to see. think we'll get bipartisan we've got to run do you think we'll get a bipartisan bill? >> listen, i'm part of every bipartisan gang there is i work in the only place in america where being a gang member is a good thing >> senator warren, thank you great to see you and we will talk to you soon, mark andrew >> okay. thanks, becky. coming up at the bottom of the hour, critical inflation data before we get there, navigating through the selloff slamming spacs. those backed by chamath.

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chamath poly hop pi tee yeah why are some plank check firms having a hard time "squawk box" returns after this quick message.

welcome back to "squawk box. investor chamath palihapitiya has hit a rough patch. his blank check companies have made deals are way down in 52

week highs open door is down more than half we want to try to understand why chamath seems to at least for the moment have lost his touch we hope for everybody's sake gets it back joining us is open door cfo kerry wheeler. great to see you this morning. i want to start with the spac phenomenon it just feels like the air has been sucked out of that entire universe and perhaps in large part chamath's -- was the king or is the king of all of these and, therefore, maybe he's getting disproportionate hit on all of this. what's your take on what's happening here >> andrew, thanks for having me. it's good to be here this morning. it's hard for us to speculate on the market certainly there has been a selloff on high growth technology stocks.

we've not been immune to that. what we've been focused on are delivering results which in q1 we've done with our numbers. up 200%. record number of offers and conversions. we want to show the numbers for shareholders >> so do you look at this as a -- simply a phenomenon of tech companies and of course tech has gotten hit across the board or do you think there's something else going on here in terms of investors and misalignments of interests, for example, around how the spacs were put together in the first place >> for us, as you said, we did a spac last fall it was the right vehicle to go public at the right time for opendoor it's a new year for us now we are a public company. focused on building long-term shareholder value and building a company for the long term. i put this in the bucket of high growth technology companies.

the spac market for us is a way to access the public markets we started at $10 a share so we're down to 52-week highs. we have created a lot of value. >> kerry, do you think there was a misunderstanding when you went public and a misunderstanding when a lot of these companies effectively went public through this vehicle about the prospects, about what the actual business was, about the diligence process? do you think that that's part of what's happened here the other component clearly is the sec has come out quite vocally about their own concerns about the spac vehicle. >> we were very deliberate in our choice to go public via a spac one of the reasons we were attracted to that as the right vehicle is we were able to talk to the market about our long-term view on how our sector evolved and how we performed we came forth with projections which we have exceeded every single quarter since we went

public we were very transparent about our business model and our vision and what we're going to achieve over time. i think investors were very well informed, andrew, about what we were all about and what we hope to deliver we are achieving those milestones so far. >> what do you make of the position the sec has taken about projections from spacs in the future right now i think there's a big question about whether companies will have the legal protection in a spac to make the future oriented projections that you have relative to the approach in an ipo where those legal protections effectively have made it very difficult for companies to come forward with future projections. >> it was really important to us that we put forth a credible business plan. i can't speak to what other people are doing but all that matters is what we are doing, the numbers we'll put forth. as i said, we have met and achieved every single quarter. it's a very long journey being a

public company we are here now. >> we have to run in a quick sec. tell us about the business housing market right now obviously hot, hot, hot, hot, hot. the question is, you know, can your algorithms and everything continue to predict where things are headed better, for example, than some of the other guys that are now trying to be in the same space? >> given the fact that we have a record number of consumers showing up and asking for an offer and accepting the offers we're giving them, we feel very good about the competitiveness and the accuracy of the offers we're putting into the market right now. consumers love our solution, it's simple, fast, certain much better way to transact. you've bought and sold a home. in this market it's a seller's market, it's hard to be a buyer. we're working on that. >> i hope we can have you back we had to spend a little bit of time talking about what's happening in the spac world.

i look forward to seeing you again. we have to runecsen bau othe other side of this break we have the inflation data everybody will be watching back in a moment with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm. with watson on a hybrid cloud factories can use ai to automate the little things so they can focus on the next big thing. businesses that want to innovate at scale are going with a smarter hybrid cloud using the technology and expertise of ibm. ♪ i wish that i knew what i know now ♪ ♪ when i was younger ♪ you need a financial plan that fits the way you want to live in retirement. a plan that can help grow and protect your money.

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welcome back to "squawk box. breaking news on april read on consumer price index believe me, if you're standing, i recommend you sit down up .8 of 1% on headline. four times expectations. strip out the all important food and energy, up three times expectations up .9 of 1%.

year over year, up 4.2% and if you look at year over year core up 3.0 these are staggering numbers, however, they shouldn't be a surprise, especially let's take those year over year numbers when you look at last april, it was up .3 year over year headline so we are comping against some of the worst corona affected year over year data inflation points for the next couple of months these year over year numbers are going to be rather large how large? 4.2% would be the biggest increase since september, get this, 2008 these are really, really lofty numbers. now as we look at what's going on in interest rates, we're almost at 1.64 on a 10 2.35 on 30s. do remember, yesterday once we traded back over that 160 and held, we never traded under 161

even i know these are compressed technicals but i try to keep it simple give yourself a couple of basis points for slippage, use 160 as the dividing line between more bullish meaning rates go up, prices go down and vice versa under 160 pivot. those should be helpful. one more thing, if there's any question at this point about how much extra benefits are kicking in to keep people maybe from taking some of these jobs, a couple of things that are postmortem on jolts yesterday, when you had a chance to look at it, leisure and hospitality were up 267 thousand but highers declined by 6,000. as you go through the numbers, it starts to jump out at you joe, back to you. >> had a weird feeling listening to you it was -- i think i want to identify it as kind of like panic. when you actually see inflation numbers when it's been so long, rick, i really didn't think they were possible.

i didn't think it was possible i still don't. i think it must be transitory. for a second, 4% those are big numbers and if -- they feed on it self again and again and again. i just really haven't gotten my head around it that we could really go back to where inflation would be a big problem. i've seen it before but it's been so long i just don't believe it, but i almost felt a bit of panic for a second. should i >> well, the problem is tran transient. once you start to see inflation, markets aren't going to be pricey in a -- you know, in an extended transient period, kind of a buy we'll let it slide even if it is transient, what's transient? one quarter, two quarters, five quarters no matter how you slice it markets are going to percolate a lot more than you have and in the end i don't doubt they may be transient, but transient is a two-fold issue first of all, a longer form of

transient. i don't think it's going to be a month or two the second thing is once they move to the higher level, they're going to stick this is the difference between what middle america and all the experts and economists and analysts feel about inflation. if your food bill doubles and it sticks, that hurts but if you're measuring inflation from the fed standpoint, the doubling actually m the cpi or ppi, whatever it is, a hot number once it sticks that momentum goes dead. basically the net change is the number we look at. that's the issue. >> hey, becky, did that strike you yesterday when druckenmiller said i'm going to eat fresh food but it inordinately affects people >> it's much too harmful for there? >> just in terms of how much they can pay to fill their gas tanks? what they can do

>> it's a real thing rick, you're right to point out this is off the worst levels we saw in the pandemic. i was looking very quickly at the stock market it's been amazing. i anticipated this would be a hot number maybe not this hot it's been amazing to me to see how calm the bond market has been with all of these signs of inflation. do you think it's because they think it's transient or do you think it's because there's so much of the federal reserve that play in the bond market? >> first of all, we're still buying a lot of bonds. buying mortgage securities and quantitative easing isn't hurting the fact i also think there's a strange dichotomy going on here. as much as we are going to see

certain areas highlyinflated, and we could debate transient, in the end the we r shooting ourselves in the foot. in my opinion, this is the lasting debt i get it how it impacts it's also priced in the bond market there is going to be a tug of war. rick santoli, steve is with us

i said this in the nicest way. mike, you are around is there anything for you? is it just rhyming steve? >> i was there let me go through a little quick data old cars 10% on the month on the month up 2.9% what's really interesting about this report.

we told you there could be some up side surprise it's very well here. i will say this to calm you down a little bit about .7 in other words, what we are looking at, what's really interesting here, service sector inflation. what you're talking about which is how are we helping people drive inflation. that erodes the real earning

power. >> we were talking about it. someone sent me a piece. the federal reserve chairman over the past. all the way down >> powell though >> yeah, but to janet yellen now a little bit for powell. it's even a little bit from yellen to powell but, look, i think -- i don't think -- that's over anticipating. >> it wasn't something that just sparked, you know, from one quarter from one month what we do know is we're probably not going to be giving out $1400 checks every quarter from here on out there was an extraordinary set of circumstances that fed into this number, but it's about investors trying to figure out

exactly how much tolerance they have for these, you know, eye catching numbers, what it means for valuations what we've seen in the market is the parts of the market that seem to benefit from a higher price level have been doing very well already and there's a little bit of a partial offset in there so i think really what's important is see if the market is willing to look through this a little bit, see if this month was a bit of a pull forward of whatever step function price increases we might get because of all of the things going on. the bond market, it's a pretty measured response. >> yeah, steve or rick, can the fed -- they'll have so much fire power that inflation can go and can they just anchor that 10-year? do they have the ability to do that do they have enough ability to anchor that? >> i'm going to give rick the bulk of the time i'm going to remark i have been surprised howell behaved the

bond market has been i'm only seeing modest reactions after a big reaction this year, both in the 2-year which is the average of funds rates and the 10-year. so far i think the bond vigilantes are not winning the day. that could change with a bunch of reports with the sense that maybe it's not temporary but for the moment i think they're generally buying the temporary story. >> rick? >> yeah, i don't think the fed can contain with any amount of qe the psychological damage that the biggest end users would experience if the fed took on an active, a very active dynamico higher interest rates. >> higher. >> with the world's premiere sovereign in the form of treasuries. >> all right that was great i'm glad we called you guys quickly after that number. i guess we should have known it was probably going to be hot, but not that hot we had a discussion earlier, we

can't play the music, but one interesting comment. staying alive which is the song of the '70s. does it not have a whole new meaning after last year. staying alive, kind of scary given the pandemic and everything else. maybe, becky, would you mind singing maybe -- >> you want me to sing it for you? >> ah, ah, ah, ah, staying alive, staying alive >> not bad we needed you to do that to get the beegees. that's going to make the end of the year reel, i'm pretty sure. >> we have liesman he's the musician. we need to have him bring his guitar and start playing for us. >> or we can get him in one of those white leisure suits, that would be good, too >> you want him to be your dressup meme too >> yeah. i don't want to -- i watched that movie the other day i loved it watching it again i loved it i can't believe how much i loved it i mean, he could dance

he was awesome in that, travolta. >> he still can. i saw a commercial he made over the pandemic he's still got it. >> how cool was he in "pulp fiction" redoing the whole thing. talented >> look at you >> anyway -- >> look at you -- when we come back, interactive brokers founder thomas peterffy, how they should be thinking about the inflation data and the market reaction a lot to talk about. the numbers much hotter than anticipated. cpi year over year 4.2%, core up 3% year over year. itas u wp .8%. you're watching "squawk box" and this is cnbc you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches...

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. futures initially dropping to session lows in the last 15 minutes before rebounding a little bit after the cpi data stoked inflation fears the headline year over year cpi increase the largest since september 2008 joining us now, thomas peterffy. chairman and founder of interactive brokers. so much to talk about, thomas. can we just talk about where we are in your view after that number we just saw in terms of inflation? i know that if you live through that, how insidious inflation

can be and how -- you know, watching bond -- the prime rate at 21.5, at the same time that we had high unemployment, the misery index that in today's terms is almost unfathomable when you think of where inflation plus unemployment was at the same time is there any way to be heading back there or much too early to say that. chairman and founder of interactive brokers, thomas peterffy. >> you're absolutely right we are going back there when we are looking at annualized inflation rates in the double digits so, you know, generally you're looking at a very difficult scenario. >> because we've been spoiled. we don't know what that does to -- it's not just equity, but just to financial assets in

general and we've been on the flip side of a pretty favorable trend for how long, thomas the latest bond rally has gone back to that business we covered that said the end of the bond market, which i think was in -- i don't remember what year that was. we're talking decades. do you think we have now hit the inflection point with what we looked at for fed policy and fiscal policy, that's just inevitable that was the point stand druckenmiller was talking about. i don't know if you saw that >> i did not see but if that's what he said, he's absolutely right. i believe the same thing and, you know, when i hear numbers like this, i look at my childhood growing up in hungary, i was playing with billion dollar bank notes, falling bank

notes and so money meant nothing. and so i'm very worried that this is an unstoppable situation because the longer the fed waits, the more they will have to raise the rates we have to realize that 3.75% annual debt which is going to be a trillion dollars we basically are painting ourselves into a box i don't see how you're going to get out of it. >> well, i -- the fed has been -- there's been a fed put to some extent figuratively on a lot of what we've done we're going to test that, it seems, or at least attempt to test it with the amount of money we're going to spend on all of these entitlements and if we do $2 trillion, an additional 2 trillion, you are going to see the fed try to, i guess,

orchestrate that with money printing would you stay long in the stock market is there any way that you can delay this past 1, 2, 3, 4 years, a day of reckoning? >> well, ultimately we have to look at replacement values of companies which will rise so ultimately, i think if money becomes, worth less and less, the stock price is, in nominal terms, will have to rise, not for all companies, but many companies that have to have substantial resources and assets on their books in order to keep on producing so i would still think that investing is going to be much better than keeping your money in cash, or in bonds. >> when i visited budapest, it's an amazing beautiful city, but you can see the architecture

where the soviet union built things versus what it used to be, so i guess you're pretty well versed in state-controlled enterprises and you probably have a strong feeling that they don't work do you see that maybe we're, the state's growing a little bit, in this country, at this point, are you surprised? is there pushback. >> i'm not surprised because i've seen it coming for a long time, but i'm just stunned that people are looking at the past and looking at other country's experiences of collectivism and they don't turn away from it, so it's frightening to me. >> history doesn't repeat, but it rhyme, and we've been talking about it for the entire show some of the similarities that maybe we're seeing it's the early stages, maybe it

can be thwarted at some point and we wanto havu back with interactive brokers and game-ification of the stock market and order flow and all of the things we want to talk about but the front and center story today is what we discussed with you is inflation and i don't know, and financial assets because we've been in a sweet spot for a long time and i'm wondering whether we're on the cusp of something maybe, maybe not we'll know in a year thank you, though. appreciate it. >> thank you >> thanks. let's get to cnbc headquarters and a check in with jim kramer to get his hot take on this hot? what do you think, jim. >> did anybody know that it wasn't going to that hot there isn't a single component that i'm not watching and i think one of the reasons that things are a little more muted than people realized, other than the so-called multiple stocks woodstocks, i think yesterday, that's one reason i mentioned

this, so i don't know who is, we're acting very surprised, and i am surprised that -- >> let me ask you this >> i'm sorry. >> who came up with those predictions, do you -- >> i think it was going to be 5% with what i follow. >> i want to go back and look and you were tweeting earlier this morning, in order for these high-tech names to really take off, you have to see some of the industrial name, some of the materials names really start to turn over before it happens and ha brings a great question, what happens next what's the leadership? is it going to be the dow? because we do see the inflation sticking around for a while longer yaed. >> historically it is the biggest companies that are the biggest beneficiaries, they can pass on huge price increases with amazing leverage because their cost of production is exactly the same whether they have good pricing or bad that's what goes up. that's historically that goes up it is not on the stocks on that

board most certainly and i know people think that the bank stocks go up but that must be people thinking powell capitulates and i think that is a weak game to play, he is obviously not going to capitulate but obviously there are many people who think he has to, so you can guy those, thinking okay, jay powell is oblivious, but he doesn't -- he doesn't sense me as an oblivious individual i know what he wants to do, put more people to work, stanley drunkenmiller, as was pointed out, put more people to work, but they're not going to have enough money tom, i know that like you, joe, have been hun glare, a beautiful place, but if billions of bank notes mean nothing, what is it the foreign -- it could be for naught, so i'm in jay's camp for a little bit more but we need to see something like what cathie woods said yesterday, we need to see some of the commodities peak, and they have not peaked and as long as they have not peaked, you can buy their

stocks i know it seems, you can buy freeport and it has gone up substantially but that's the nature of inflationary cycle, you don't have to think about it which i know is terrible but they go up and up and up that's what they do. >> soybeans up again after the highest level. and copper up. after an all-time high yesterday. we're looking forward to hearing your views in a few minutes. "squawk" will be right back. [ "ooh la la" by cherie playing ] the moxie showerhead speaker. only from kohler.

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welcome back to "squawk box" this morning dom chu joins us with some market reaction to this hour's big inflation number dom, what are you seeing >> so the big inflation number has been interesting because the markets have taken this relatively in stride overall first of all, we will take a look at what's happening with the futures market, and everything else that's happening on a ma tro perspective. if you take a look at the market reaction from a stock side of things, yes, we did see that kind of sharp spike lower here by about 13 or so handles in that particular move in the s&p 500, we're still kind of hovering down near the lowest levels of the pre-market session for future, but still, a more muted reaction elsewhere in the markets, also

check out what's happening with the overall kind of rate complex if you will, the 10-year note yield, 1.65% we have been holding around the 1.6% mark for a good while here and we'll see whether or not there is a move higher to some of the highest levels we've seen over the course of the last two years. and gold prices, we have used gold as an inflation indicator the last several years gold is up one quarter of one percent, you can see the highest level we've seen in months over. there and one other police to watch is whether or not those interest rates will have an effect on technology stocks and their particular valuation concerns so we will be watching throughout the course of the morning for some of the pre-market trades in stocks like apple, also microsoft, and amazon, and alphabet's parent company google as well, those are going to be. so key names to watch in the pre-market you can see they're in the red so far, joe. back to you. >>dom, thanks. final check on the markets

pretty orderly, maybe. kramer is probably right it seems like big numbers but not a huge surprise. the 10-year is back to the high end of the range we've seen. guys, all pretty orderly so far. it doesn't look like the end of the world at this point. that only happens once that's the good news make sure you join us tomorrow, see you guys, make sure you join us tomorrow, "squawk on the street" coming up next good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber, looking for another drop at the open as april cpi comes in 0.8, the biggest month on month jump since 1981 and adding to inflation worries and nasdaq on pace for the worst month since september. the inflation surge, the biggest headline year on year rise since 2008, plus, continued turmoil in technology, shares of alphabet,