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,

microsoft, facebook, apple, the mega tech name, all in the red again, ahead of the open. and as gasoline shortages worsen amid a shutdown, the biden administration with an urgent message to drivers. don't hoard. carl >> a lot to get to, a lot of it very immediate with concern, jim, the inflation numbers are big and clareda says the economy is a long way from goals and substantial progress is likely to take some time so it is very hard to knock the fed off the perch they sit on. >> and they are looking at inputs what was the expectation, why was it so low? that was stupid. everybody knows who watches our show that the numbers come in high you have to break down components and have to see what could possibly peak. and i'm not in the cathie wood camp, which says if they peak now, peak soon, and inflation goes down, you can buy the high

growth stocks. obviously the market isn't like that, but david, i know i'm a broken record on this and i know stan drunkenmiller is a terrific guy but i will stand by the idea if you get a couple of breaks in inflation, this is worse than the inflation of december 2015, where janet yellen raised too soon, but there are many factors and many pieces of inflation that can be considered transitory, if we can just fix some things. and they're not being fixed. >> such as >> the unemploymentbenefits. the no tariff, taking down the tariff, on lumber, which is a ridiculous thing, the president could just call trudeau and say listen, we're done with that, but you can flood us with lumber >> it's sometime back that the group was put in place. >> yes we wait for the copper mines to be able to open. it is difficult to take the food complex down but we know from

tyson foods their margin could go down and therefore there could be a lowering of prices at the supermarket, so even one has a tail. and one of the tails has to break. before this stops. >> and the conversation we've been having at this desk now for weeks is the one that's been the market, largely speaking, is having as well, jim, which is whether, this is, as you continue to believe transitory in nature and as the fed certainly seems to believe with some unanimity or whether it's here to stay 1981, even you kind of gasp with that one >> that's when they had to do it had to buy the u.s. treasuries at 14% the one thing i would say, and i think it's important, is that people at home have to understand what happens to stocks there's a very fine company u software, and what is interesting about it, it is a revenue, you call it a

pre-earnings stock, the revenues are up, and the price to sales, which is how the stock is measured, has shrunk dramatically from where it was, so there was a feeling that perhaps with the revenue upside from last night's quarter, which you got, and you can substitute road blocks, but today, we didn't have inflation, the stock would be up big. >> right. >> but instead, the pressure is on the price to sales multiple and people don't want to pay 16, they want to pay 18, they don't want to pay 18, they don't want to pay 10. they tend to want to pay seven and that's why a stock like unity could have a much better than expected quarter if people sell. >> and that's reflective of what's going on in the market the last few days. time multiple stock, pre-earnings, dealing with multiples to revenues that have been high flyers and the reason that cathie woods ark funds did so incredibly well last year - >> was inflation >> no, it wasn't inflation. >> there was no inflation. >> right

>> i would tell you, carl, the ones that are most damaging that i think people see are the pre-sales names like virgin galactic. >> even the spac stuff, too. >> pre-sales. >> so those are on '24, '25, '26 revenues. >> cathie wood would be a hero. >> i listened to quantumscape last night and in another environment you would be buying that stock aggressively because carl, they've got the better battery and phil lebeau will tell you the better batteries will win. but in this environment, it is another company that loses a lot of money >> well, jim, you mentioned cathie wood weighing in on inflation, at the webinar yesterday, she said she would be surprised if oil got to 70, it's really not that far away at this point, but she talked about the degree to which technology in particular will continue to add to the deflationary environment, we've seen really for decades. here's what she said. >> i'm sure that the markets will continue to grapple with

inflation. now, we believe the arms of deflation have actually gone up in this period a few reasons. the technologies and the innovation around which we have centered all of our research and investing is rife with examples of the deflationary undertones that global economy is facing. now, the kind of deflation we're talking about, this innovation-based deflation, that is very good deflation it's associated with very strong unit growth. >> so jim, the kinds of things she's talking about, you can obviously see in long-term trends on the cost of say financial services, and payments, but she's also talking about a severe, or a serious correction, she says, in commodity prices in the near term. >> now, i know that there's

been, ever since the friday interview, different takes on what she says. she's right. we figured out, i was, i sent a note to the ceo of quantumscape, saying, listen, is there a way to make batteries with less copper i mean right now, the ev batteries with copper, is there a way to substitute aluminum remember when they substitutes copper with pvc? i mean there was technological break throughs all of the faang stocks were technological breakthroughs. the problem is, carl, those breakthroughs take some time you can't just say right now, that lemon aid which is a company moving into insurance, to cut the price of insurance, that they can do it fast enough. can max, a firm, can he take on the banks fast enough to make it that the credit cards that you might pay 17, 18, 19 times interest are not, well, there you go, david, are not going to be able to -- pay pal, lemonade,

and raise price, the bank stocks doing well, so i think she's right longer term, and that's, remember, she is a longer-term investor. >> she is. and so these are opportunities >> if you believe that inflation is peaked. >> and if you believe in the growth prospects for many of these companies. >> but it's a brilliant analysis it's been right. >> so why not this be that opportunity, which by the way has been many times in the past when we've seen the bottom of the range so to speak. >> because i think a bit of a -- >> as clara said, if the fed is committed to its stance, then we're not done with these number, it's the first of the really bad numbers and every time a number comes like this, you will get unity, and by the way, let's get it very clear, lemonade was good, road blocks it might be the fastest growing company in the universe.

an extraordinary company that's not what you pay for. you do not pay times sales you have to pay times earnings you cannot buy stocks that don't have buybacks, you must buy stocks with dividends. >> a first time in a really long time value has outperformed -- >> right >> in the last few months. >> by the way, i know guys who are up dramatically because they run largely value-based portfolios and it has been a really nice run. and they're happy to have it and they could care less about the tiers of the growth guys. >> and i was a hedge fund manager, carl, i would just come in and say listen, we're going to own phelps stock, which is freeport and reynolds metals and what else? phelps dodge, reynolds metal, alcoa. and that's how you outperform and periodically you add something else, maybe you throw in a steel company, but let's not forget that when you get these periods, you're not thinking about vizio

palantir is not on your front burner afubu tv, karl, you're not making an exception for fubu. >> roblox up and really tough comps your point on roblop is-- roblo is so good, but i wonder how quickly the corrections could come, if and when they do. >> that's why cathie wood could be very right. what was down more than ebb else in retail yesterday. home depot and lowe's. they're having a huge spring but a lot of people think they're a beneficiary of lumber, too, and it's not clear that they are but that's the ones that go down when lumber goes down, and i think that with lumber peaking, remember, president biden who does not watch, from my understanding, a lot of tv, like the previous president, he's busy out there, our previous president watched a lot of tv, but if he were to ka

call trudeau and said look, we need to get rid of the tariff, very few people, a couple of companies that would definitely be angry, but then that would be the beginning of what i would say would be that, and with notebook computers, which have peaked and that's why, if you take a look, carl, all of the components of the notebook compute ver been drastically because notebooks peaked it's inflation it has to go up. everything in a notebook had been going up furiously. now, they're going down furiously. the president picks up the phone and talks to trudeau, and just says listen, let's get rid of the tariff that's been the leader of inflation and the next thing you know cathie wood is up 30% what what are you snickering about? >> no, that's a great playbook you just put out there i liked it >> well, you would sell your phelps dodge. >> yes. >> fortunately, they don't ring a bell on that kind of stuff, do they >> no, they don't. but you have to watch what carl just said. lumber down. you know home builders have been telling me, one day you come in

and lumber will be limit down and that will be the beginning of the end and i complained to one of my favorite, i can't get a new bathtub from kohler, i begged for a toilet. there's an interest line a wall street bets line. cramer bets for toilets. we hate his daughters. sorry. they go there. do you like when they go there >> i don't know how to access it. >> i stopped looking that's what i did last time. >> your tweets - >> fbi is. >> federal bureau of investigation. >> great people who do cyber security and pay visits. >> okay. >> fbi who is fabulous with cyber security except for they weren't called in - >> guys, pretty much where they were before we got the cpi print, and we haven't even started the market day, take a look at the dow and s&p and

nasdaq futures we're back aft areer bak

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and customers safe by working from home... ...and using precautions in store. see what we're up to at xfinity.com/commitment colonial pipeline workers are working to manually release the stored supplies to alleviate the gasoline shortages which have cropped up across the southeast, the ransom ware attack last week halted 2.5 million barrels a day of fuel as you know through the biggest u.s. fuel pipeline

colonial says it hope force full restoration by the weekend but in the meantime, national average now above $3 and two-thirds of gas stations in charlotte, jim, have no gas. >> this is amazing because when you actually look at the fundamentals of the pipeline, there should be no hoarding aaa is right there, is enough gasoline brian sullivan had a map this morning that showed you the percentage of gasoline, you could jack the price up a little bit, which they always do, not supposed to, do and we should be okay, but there's no doubt that the more we report on the story, not that we should hide it but the more we report on the story, the more people get nervous and the more people start filling up tanks and then we get lines until colonial makes some sort of, i love colonial saying we may make a decision today about what to do you need elon musk in there. >> there are a number of things we don't fully understand about the attack and how far they got.

and whether they're taking precautions -- >> did you read everything - >> i'm telling you they did not communicate everything it may be by design because there are certain things you obviously don't want to share. but we just don't know fully exactly what they're going through and the protocols they're going through to make sure everything comes back online and hasn't been infiltrated by the bad guys. >> and they had the jones act and superstorm sandy that allows you to ship regular tankers and kmi is a good stock to buy on this >> it does highlight just how important these pipelines are. >> well, how hostage we are. >> yes. >> don't you think they should have had some protocols. >> with cyber attacks which we talked about - >> you go to others, you want to pick up the phone and call 's got a plan. >> there are other guys. >> there are many other guys

>> attacks continue to happen. and they will continue to happen they should be called in >> call in the cash. >> the bad guys get better -- >> the good guys have weapons, too. carl, the good guise, what they lack, is a defense department that says you know, what, let's play ball. i mean the military's fantastic at cyber fantastic. >> nsa. >> the nsa, okay they don't do it pitiful helpless guys to quote one of the best presidents of all time just kidding. >> a topic of discussion between the president and putin in the coming months. d.o.t. did put out a statement saying they're ready to receive waiver requests on the jones act. and the energy secretary yesterday talked about the harmfulness of hoarding. here's what she said. >> let me emphasize that as much as there was no cause for say

hoarding toilet paper at the beginning of of the pandemic, there should nobody cause for hoarding gasoline, especially in light of the fact that the pipeline should be substantially operational by the end of this week and over the weekend. so at the same time, it certainly is a reminder that we need to take a hard look at how we need to harden our necessary infrastructure, and that includes cyber threats >> jim, some have used it as a wedge to say that we shouldn't have made the decision on keystone that we did, of course keystone moves an entirely different type of energy. >> that passed my mind, you know, canada's got so much more oil than it needs. but look, i think we've all, you know, i think many people have come to the conclusion that at least the canadians, the way they mine, they mine oil.

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time for k"mad dash," and it is hump day by the way >> ubs raised the price target from 2.30 to 252, and this is very funny for wall street, caterpillar, cash-erpillar hilarious. and talking about how strong it is strategic flexibility. upside david, this guy has a neutral on it >> he's got a neutral on it? >> he's got an upgrade he upgrades. i walk over there, you're vaccinated that doesn't matter, what you have to do is social distance. cdc. >> stop it and just walk up. >> the cdc says nothing matters, 10% of the people walk by each other. can you believe that >> you sent me tham request.

>> he upgrades somewhere around here, okay, and then all of the other negative guys, i used to be 5'9", david. >> i know. >> the upgrades occur in this cycle. this is a cycle. and the cycle has very few winners because we don't make much in this country and this will be one of them. and jim is so good, so much better than previous management. >> take-aways, it will keep going up to the right. >> you got it. you are on your game today >> i always tell viewers, i always have a very keen sense for the obvious. >> you want a dow stock to own for the cpi? bingo. their products best in show >> there you go. >> speaking of the cpi, we will get a chance to see how the market actually reacts we've seen a lot of e-market mos. you can see them behind me the open is coming up after this

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we'll keep you ready for what's next. comcast business powering possibilities. i'd like to get out of the pandemic more solidly than we are today. so i'd like to see these

metrics, fatalities per day, and confirmed cases, go even lower than where they are. i'd like the cdc to come out and tell us that they're more comfortable than they have been. so we'll see if we can get to that point but i don't think you really want to change policy while you're still in the pandemic tunnel, even though you can sort of see the end of the tunnel, we're not there yet, and we got to push hard to get all of the way to the end >> st. louis fed president bullard yesterday on closing bell questions echoed by clarida this morning in the q&a, he says he has more concern about the weak labor market than higher inflation. we keep talking about these eight to 10 million americans that are still unemployed and then we get a number yesterday that says there are eight million job openings for those who are willing to take them. >> look, you have the policy and put a price out there, people sign up, they don't show to be

interviewed and i need unemployment and i can't find the right job, listen, i happen to love, i happen to respect mr. bullard tremendously, and i started my show last night, david, with the fact that it is a health crisis, public health, and i did not directly criticize the cdc, even though i think that they're frankly arbitrary and capricious, but i do think that there are things that are happening in america that if you had, let's just say a vaccine, a liberty pass, i don't know, we would do much better and then mr. bullard might change his mind. but the minority unemployment number, and going back and forth with stanley drunkenmiller and i know he has done more for minorities far more than i have, but that number is too high. >> right. >> and it is true, if you have inflation, everybody's savings get hurt, eroded but that number is too high, and i struggle, if i were on the federal reserve, i think i would come to the meeting and say i can tolerate a little inflation until we get that minority back to where it was under the previous

president. it's wrong i think that number is wrong and we have to stay easing until more african-americans -- >> the federal reserve chairman agrees with you, jim. >> yes >> jpmorgan -- >> the nyse and nasdaq, that's going to be what to watch here, jim, as we get the opening breadth. nasdaq of course down 4% for the month. although we did erase that 2.2% deficit at the open yesterday, jim. i wonder what you made of that >> i thought it was, there was a lot of woodstock buying and those were the stocks that turned, this is for those who are unyinitiated, that's cathie wood ark stock, and if you want to know what to do, take those off the screen and watch tesla

tesla led the rally and on the other side, it was octobera and ring center, and two of the highest value and crowdstrike and servicenow, after the excellent interview with bill mcdermott, servicenow rallied very big faang can't get any traction and the reason that faang can't get any attraction is because they're expensive or inexpensive. and amazon had a great day yesterday. amazon had a great day and because of it, we get a price target boost that's another time-honored thing that analysts do well, amazon, they're going to boost the target why, because the stock is up circular reasoning david at the absolute best and we know circular reasoning is not particularly helpful. >> as we take a look at amazon shares down less than 1% you were very enthusiastic about the quarter. >> great quarter. >> not to mention the year it had last year. >> i do not like the fact that

alexa has been putting on songs that i like, that it's just a little intimidating, i wake up, she has songs that are exactly, i wanted to hear the brotha brothers, cajun music, she had it ready. >> ai, baby. >> ai is scary. >> it's coming for us. >> why do you need me if you have her > >> due. >> - >> you don't. >> i think it reminds me of the sales figures out of bezos $6 billion range for amazon shares. >> 6.7 billion >> and when it crossed, that's when the stock started going up. >> yes. >> no, no, and with the tranche, the stock went up, it's not because they had nor deliveries. >> it's quite a thing when you can sell $6.7 billion worth of stock and it's just, whatever, my couch, whatever i found

around the house. >> loose change? >> well, yeah. >> let's not be jealous of anyone, david. it's unbecoming. >> i didn't say i was jealous of him. >> oh, really? >> carl, i think it's jealous. >> you would like to get in one of those rocket ships. >> i don't know if you want to be in the virgin galactic. >> no. >> because they delayed that one multiple times >> can i be in one that's not pre-revenue. >> you want to be an earnings story? >> i would go up in one of his rockets if he called me. >> bezos >> yes >> yes >> sure. >> why not >> i think it would be a ride. >> one of the most exciting things ever. but bezos has to call me i'm not going to call him. it's not about me. >> that call's not happening long before there was a kathy wood there was a guy named masa. >> the 2,000-year-old man. >> or the 300-year plan. >> the 300-year plan >> my favorite book. >> the plan is going pretty well. >> a year ago this time, everybody was talking about

softbank and the losses it was suffering and the massive vision fund of course,the stock is down, you can see that but i mean you take a look at let's call it a year, please, or even longer than that, and you'll see it, it's roughly doubled, close to that, and look at the numbers here, in terms of what the vision fund did last year, to this year, we're talking about an enormous reverse until terms of gains on investments. a year ago they were under water. and now -- >> well that was newman. >> newman. >> we work with one of the issues cramer says it was newman. >> newman definitely did not help things. but you know, a lot of things did, and when we're talking about here, about the net equity irr, this is after, 39%, they were negative march 31st, 2020, and 39% now, is the internal rate of return on the vision fund realized gain, enormous gains on garden, health, osi soft, uber also of course, and that continues to be a large portion of the portfolio and i think we may have that as well. but the vision fund has been

nothing short of a great success at this point. remember saudi arabia in there for 45 billion, 27 billion of that is actually -- here's a look at the holdings coupang. remember that? doordash, done extraordinarily well and remember they're largely an investment company well, obviously, sold sprint to t-mobile and sold a lot of the t-mobile stock, sold a lot of their, spun the actual softbank telecom businesses, so it really is largely an investment company. >> it's a nice comeback. >> quite a comeback. >> it's a nice comeback. >> for someone, now there's cathie wood's vision, masa's vision >> a somewhat different approach and buying companies that are often not public oftentimes and the vision fund, and venture capital, but we could argue spac has replaced to a certain extent

late stage capital and venture capital and then taking the companies public, obviously. perhaps earlier than they otherwise should have been but yes, in this case, it has been quite a turn-around for softbank we've seen that elliot has been a big beneficiary. they got in the stock. they want bigger buybacks. overall shareholders may still be clamoring for even more, given the returns, given the gains that they have recorded at the vision fund, but overall, the arm deal, jim, you have to wonder about that. masa did not have much to say on the conference call. given u.k. greaters. >> nvidia reports at the end of may. and find out what their plan is. the stock is not that hurt more hurt by multiple contraction. >> and nvidia is in a deal to acquire arm and the fate of the deal is very much uncertain as a result of regulatory opposition from the u.k. and others as well. >> they're still confident in nvidia. >> they are trying to figure out

a way to get it done >> carl, once again, what's leading? so we've got goldman sachs, a higher rate play perceived to be -- i'm calling it the break powell play >> break powell. >> and caterpillar because it's cash-erpillar. >> do you like that? >> wall street, what passes for wall street, they should go to carillon and try sthat stuff. >> you're right, though, jim, goldman, caterpillar, jpmorgan, top performing names, on the dow right now. you know what some, jim, are drilling down on, in terms of the cpi number, used cars. as the real locust of inflation within the print and i guess pantheon macro for example today is trying to game it out and say we're all going

back to work but we're not all going to take public transportation we're going to want the second car. and outside of the covid sensitive transportation c components they argue it is relatively benign. >> it's terrible take for example the f-150, that's the truck for smaller sized businesses and places in the country where you literally, the cars that are in the warehouse lots, you know, where they do the giant auctions, the f-150 is selling through new prices, to get an f-150, that's two years old right now when you need one, you can pay through sticker price from another part of the region, it is not right, the used car is not something that billionaires buy, it's something that you use when you're trying to expand a small and medium sized business, that will stop when full goes into full production. we'll see their numbers. the japanese plant is back online taiwan semi is probably 60%.

but carl, you raise the point of who is getting hurt and in this particular case, you need that vehicle for small to medium sized business expansion so that's just a mistaken policy or a shortage of semiconductors, carl you could say either one. >> yes, i don't know if you noticed, bmw, said today, that they expect at least half of global sales to be fully electric by 2030, and that they'll deliver 100,000 of those next year. >> a lot of people feel that volkswagen has a tie-in with jagdeep singh, with quantumscape, and they are thinking it is priceed so low, it is worth it for vokes wag ton do it either way, and phil lebeau talked about it yesterday, you need batteries that are faster charging, safer and can go further, carl, before you get to more than 3% of our country being ev they can make all of the ev they want, the dogs won't eat it, that's a reference to when you put new and improved on a dog

food, i'm talking to you - >> i'm listening to you. >> when you put dog food and it says new and improved, what is it that the dog says new and improved the dogs won't eat it. >> i know. >> evs, they won't eat it until it's faster, stronger, better. but the dogs don't look at it and say, hmm, new and improved >> they're not interested. >> no. >> they just want to know if they can get their charge in 15 minutes. >> i want to make sure you're paying attention. >> i pay attention even when i have my head down which i think at this point you would know that >> i'm not impervious, i don't want my feelings hurt. wall streetbets. >> i'm calling every single copper company and auto company to see if they get get substitution for batteries not right now. >> it could be as much as $200 >> but there is a tipping point. >> why is copper, carl, why is copper not able to get a lot of

traction >> waste waste matters. waste management because of a certain point, the copper that is thrown out gets taken out of the landfills and sold >> by the way, turkish speculators have historically bought a huge amount of copper at waste management pits and you can get that, you can get the substitution of the pvc, which is happening right now, according to furman, and finally they open mines, particularly the gold mines because cop ser a by-product so prefort can run, but when it gets too high, they can't hide carl at a certain point, carl, copper is not a microsoft >> and that will be a story for us eventually as it has been in prior cycles >> yes, it has. >> metal becoming a market all by itself. we're down 146 on the dow. vix back to 23

let's get tobob pisani good morning, bob. >> good morning, guys a little bit of up and down 4121 was the low print so far at the open that is exactly what happened yesterday. the low print. wobbling 4121 commodities in play. oil at a new high. and energy is really leading, of course, you can see crude here, up, essentially at new highs, i think that's driving all of the energy stocks higher but tech still sliding here. mega caps down about 1%. mostly on the big semis. and apple, amazon. energies, sitting there, new, close to a new high as you can see with the oil up here, and banks doing very well and a slight increase in the interest rates and utilities not doing much, and steel is down, very interesting and think about inflation and play commodities but this has been played out a little bit i think that's a major problem that we've got here is where we are with the markets right now. this is why inflation has become such a big story here. the fed has been the major

driver of the rally. liquidity and of course a round of stimulus as well. the fed though, it seems very clear, has been more focused on employment over inflation. i think that's a fair characterization the market risk right now is that the fed is wrong about that that the fed is wrong about the timing of rate hikes, and the tapering and that we're going to be forced to start talking about this possibly tapering in jackson hole it's not going to be two years before a first rate hike it's going to happen right now that's the market riskt right now. so people are trying to figure out portfolio diversification. what should you do obviously, inflation, commodity stocks, for example, here's the problem with the commodities, that jim mentioned this before, if you look at the big names there, look at this, they're down today but these have had huge runs in the last year u.s. steel up 200% in the last year freeport mcmoran up in the last year the game is really played up by

the market and those who are trying to diversify the portfolio now are a little late to the game here looking at easy etfs, there is a basket of commodity stock, commodity futures, look at this, straight up. pdbc straight up for the last year at a new high today. again, fully anticipated in commodities as well as the commodity stock area so if you're thinking about diversifying into let's play commodities and let's play inflation, this game has been played for a long time already at the same time, mega cap tech down today, still holding up comparatively well, compared to the more speculative tech route that we've been seeing in the last few weeks and that's because the fundamental guys are really still sticking with mega cap tech because the growth prospects are there and let's face it the multiples are not that bad, 25 times forward earnings for apple is not that bad given the growth prospects and you're not seeing the big guys abandon the stocks. so i think that has a chance of

holding up fairly well finally, guys, i just want to note, we've got an ipo down on the floor today. and we have some yelling and screaming. the company is going public. and the officials are out on the balcony yelling and screaming and my friend is behind me with gts, getting ready, people are standing outside the post, some traders ready to get going on this thing, 19 to 21 was the price target, pricing at 22, so above the range, but the bottom line, carl is, we got ipo, we got people standing on the floor, things are slowly, slowly getting back to a little more normal back to you, carl. >> yeah, a viewer wrote in and said it's nice to hear just the ambient audio behind your mic there at the nyse, bob pisani. we'll see you later. let's get to rick santelli as well who brought the cpi number at 8:30, hey, rick >> it's been a while i'm jealous bob is on the floor.

i'll be back on my trading floor soon, god willing and if you look at some of the data this morning, we have to go over again, it was so hot, as you look at the headline number, up 0.8. it goes back to june of 2008 since we had a higher month over month headline cpi this is the all-important food and energy this series goes back to 1957. up 0.9 we haven't seen a number like that, well, going back to 1981 yes, 1981. and finally, the year over year headline that really captured my imagination, up 4.2%, rebusted right through the floor handle, haven't seen a number that big on a year over year headline since september of 2008. so these really are big numbers. >> in terms of whether they're transient or not, nobody can answer that question but it seems a bit counter-intuitive that the period of transience is going to be very short, doubtful it will be a month or two, many thing minimum six months, but

six months markets have to contend with that. and if we look at what is going on with the market, that's easy, look at 10s and 30s on intra-chart intra-day. and zoom, zoom, zoom, where we sit now, up a half a dozen basis points and it doesn't stop there let's look overseas. i paired up bunds and gilts on an train-day chart and they're experiencing the same type of move. and most likely experiencing similar bouts of higher prices carl, jim, david, back to you. >> all right, rick, thanks so much rick santelli. s&p 4120 here. an inside day. early days though here at the first part of the session. dow, s&p, are on pace though for the worst weak since the last week of january. labradoodles, cronuts, skorts.

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sales of tesla vehicles made in china down that's according to the china passenger car association.

they quote a 12% decline although it's going to feed the debate about whether china is taking a more nationalistic stance and backing local players. >> we continue to suspect that there are people who think that the american companies are very much more on civil rights than previous -- the old days you have esg it's easy to go to someone and say you're working in china. are you realizing the incredible discrimination they have against a huge group of their population >> it's a big group. the wouyghurs in particular. and it's been an issue for some time the question is whether or not some companies will be brought to -- under more pressure to master or stop certain things. when it comes to ev and china, jim, you have so many domestic players there being funded by the way by our capital markets

this goes back to the point you been making for years. >> i know. >> but from our capital markets, not to mention state support as well the question is does that -- do they actually become real players? can they dominate? >> can they dominate >> that was a good article in the times. i love that. the times have done big takeout pieces that are excellent. >> all right, guys there's a look at tesla 616. we're back in a moment don't go anywhere. -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪♪ we'd be closer to the twins. change in plans. okay. mom, are you painting again? you could sell these. lemme guess, change in plans? at fidelity, a change in plans is always part of the plan. the pursuit is on. the pursuit of lemoutperformance at pgim.ns?

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jim, and stop trading. >> carl, here's one that's odd that it's not down more. novavax. jpmorgan is questioning their ability to make vaccine at scale. they're losing confidence. the mrna, when they first started coming out and pfizer and moderna, you had all these restrictions about how you had to send it it had to be ice cold. that's over. they're saying the manufacturer's challenges aren't going away and they no longer have a product that is going to take the -- if they ever get it out, take the country by storm

it's very damning piece by jpmorgan i didn't like it they really -- i'm not sure it was -- i know when i read it asaid wow, this stock is going to get hammered. not yet. >> yep definitely discouraging, especially after we got some indication earlier in the week they might have a combo shot for covid and flu, but we'll watch that we never got to wendy's and their raised guidance. you have them tonight. >> yeah. this is not -- this is not just because of my wife's voracious eating of the baconator. she had the double i put it on twitter. she wasn't happy about that. wynn, we have to talk about this interactive deal with bill foley. another spac guy and then -- >> a money maker >> he's a money maker. >> that's what his people say. >> and then you want the stock that's been up

the s&p for two straight days? norton lifelock. are you protected? we'll have them on what >> jim, we'll see you at 6:00. >> i want an antisticker wear a mask. put your mask on inside. no, they want it off they want it on. we can't cruise. sister, mother, sister, mother, cdc. >> forget it, jake we'll see you tonight. "mad money" 6:00 p.m s&p below 1429 makes it the worst week since january. don't go anywhere. with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;) confidence is at the heart of everything we do at carrier. our systems fill buildings and homes with healthy, clean air. we detect and put out fires,

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good wednesday morning welcome to another hour of "squawk on the street. equities feeling a chill from that cpi print of april as we get to year on year inflation of 42 up month on month the hottest month on month rise since 1981 with that dow s&p worst week since january. >> yeah. a chill from hot data. 30 minutes into the trading session. here are three of the big movers

starting with amazon shares under pressure this morning as the tech continues to feel the pain. separately, there was an eu front ruling in amazon's favor scrapping the idea that they pay back taxes shares down more than 1% electronic art issuing a bull forecast after beating the q-1 earnings projection. expecting the momentum to continue even as covid-related restrictions ease, shares down 2% finally we end on fubo tv. those shares are surging after delivering record revenue. the stock is still down over 20 % year to date don't miss the ceo, though, of fubo next hour let's get to steve liesman on the inflation surge accelerating at the fastest pace in a long time >> yeah. david, a much hotter than expected inflation report. shocking markets

and even the fed, the fed vice chair saying in an interview he was surprised by the report and that if inflation rises to a level inconsistent with the goals, well, the fed has the tools to bring it down he added he does not have unlimited tolerance for inflation and would be concerned if inflation expectations became unanchored he said he believes the surge is transitory while it could take time to bring supply and demand in balance the headline number of 4.2% compared with 2.6. food and energy, core inflation, it would be double to 3% from 1.6. driving the increase, used cars up 10% that's partially the chip shortage that's reduced car production as well as by the way, your used car is worth more if you drove it less. there you go transportation surge up 2.4 % with a massive increase of 10%

for airline ticket prices, natural gas, medical care and food up. it's still a strong number food up 0.4% michael pierce says almost all the gain was driven by outsized increases in sectors that are seeing demand surge as restrictions ease. another factor base effects. weak numbers in the beginning of the pandemic they dropped out of the year over year calculation that doesn't explain away, though, that prices are rising and rising faster than most forecasters predicted. remains to be seen how long the fed can hold the line saying it's transitory and not a problem for the economy. back to you all. >> well, we'll go right back to you, steve transitory is the word jim cramer and i have this debate not a debate we discuss it every morning. i'm not taking the opposing view what does this as a long-time watcher of the statistics tell you in terms of the transitory

nature of the data >> so you know me, david me and my spread sheet are like this i looked at when the base effects would start to come out. we would start to see in april, sorry, in july the base effects begin to stop pushing up prices. if we get to july and august, and those base effects don't start dropping out and you still have surging prices, and you don't hear the stories, david, i think they're reporting morgan does about the freight business is very important, and all the reporting for all our reporters out there about what's really happening on the ground in production when we supply disruptions. we need to see them come back in a line global supply, domestic supply, and then you can say okay, what's the true state of inflation out there? and all the while you have to worry while we go through the process, have we made a major impact on the psyche of

consumers and built inflation expectations that's really the worry right there. >> yeah. steve, thanks for the shoutout >> i know you touched on this, but to dig into it a little bit deeper, i mean, obviously we have the trifecta right now. the rising commodity markets and prices there the supply chain, the hiring difficulties from an increasing number of companies right now. when you actually look at some of the key inflation data points right now, i mean, do we even bother with year over year given the fact that it's noisy last year should we look at month over month or dig below the headline numbers and core numbers more specifically when you talk about things like transitory and where we could see lasting effects >> i think that's an excellent point. the month to month is giving you a better look. we like to look at year over year to smooth it out. what people don't know is that you're at heart a trucker, and that you daily send out freight and trucking data to all of us, and i saw some of the data you're looking at there.

>> this is true. >> look, let's go today a favorites, favorite indicator, airline passenger prices think about it you had all the airlines that were in the airplanes that were in the desert. you furloughed your pilots all the sudden everybody wants to fly the planes aren't on the tar mack the pilots aren't there to fly the planes this is an adjustment period we'll talk about inflation and real inflation when we get those planes back flying, get the pilots back at work, and then see what's happening at the airline fares. that would be true inflation if it's not a matter of supply disruptions and the shock of going from an economy that's stopped to an economy that's really revving up right now. >> yeah. i mean, from a fed perspective, does any of this really matter right now at this moment in time until we start to see stronger jobs growth? >> i think it won't matter for the policy i think they're maybe feeling the heat you've heard a couple folks say

yesterday and today, hey, if this gets out of control, we're ready to act they didn't have that rhetoric before >> all right steve, thank you joining us now is valerie grant, alliance bernstein sbp. thank you for being with us. >> you're welcome. good to be here. >> so we could certainly wade into this debate around inflation, how hot the numbers were this morning, whether it's lasting versus transitory. definitely want to get your thoughts given what we're seeing within the market in general right now at least in the near-term, does the transitory part matter and if it doesn't, how should investors be positioned? >> i do think whether this is transitory or something more enduring is a very important question to address. and i tend to agree with the gentleman who just spoke, because we're really at this period where the economy is beginning to reopen, and it's reopening at different rates in different parts of the country

and in different parts of the world. but meanwhile, we have demand surging. and so we really have a mismatch between aggregate demand and aggregate supply it will take time for this resolve. and i think that's why we see a rise in the vix. i know we have shared those numbers with you the vix is up 30% in the last month. and that's an indicator of uncertainty and fear and expectations in the market around volatility. so i think this is going to be a very volatile period and that's what we should expect for the near-term, certainly >> so whether it's the vix, whether it's the action we've seen in the market more broadly in recent days, we got red arrows across the board for the s&p nasdaq and dow again today i mean, certainly it's been a very choppy start to the year. we've seen a numb of pullbacks already. how would you categorize what we're seeing currently is there another sort of

gyration within this uncertain market, or could it be steeper >> i think this is par for the course we've talked about this a number of times on this program, and in other segments as well this is going to be choppy for a while. i mean, we're really in a somewhat unprecedented situation here with the evolution of the covid pandemic, and we know that it has not yet abated. and we live in a global economy, so until the pandemic has resolved globally, i think we're going to still see supply chain disruptions, we'll see trade disruptions, and so we should expect this choppiness in the market but there is a silver lining, and that is companies have adapted in ways that are really surprising in the midst of this crisis we saw that over 84 % of companies who reported in the current earnings season have beat expectations. i think in the long-term we'll be fine, but we should expect volatility for the near-term and through the end of the year.

>> valerie, i wonder if you think there's a creeping notion that the market is actually quietly craving some acknowledgment from fed officials, not just bray nard on the margin, but from powell that look, we're going to have a conversation about at least tapering before the end of the year i wonder do you think the market thinks there's too much stimulus >> it's possible, because we're in a situation where we have fiscal stimulus as well as a very accommodating monetary policy, but, again, we are in a bit of an unprecedented situation here with this global pandemic, and the carnage that was really imposed on the economy. so i think that aggressive measures were probably warranted. and it's going to take time for this to work and flow through until we're in a point of equilibrium. one of the things -- >> sorry let me just end here with the question about your portfolio.

almost $1 billion. you're overweight versus the s&p others are you changing anything in terms of your portfolio discussion based on some of the things you're discussing? >> no. we're sticking to our investment, different factor exposures be that value stocks, growth stocks, and we have some that have very attractive dividend yields as well. i would say that we're overweight some of the renewables names even though the energy stocks are up right now we think over the longer term, that's a very good place to be and so no, we have not taken any massive repositioning in the portfolio based on the data. >> all right valerie, thank you for joining us today >> thank you as we go to break, look at the road map for the rest of the hour a closer look at the tech turmoil with the nasdaq as the lowest level in almost two

months >> plus the ceo of commercial real estate cushman and wakefield on the return to office that stock is up more than 90 % over the last year and the national gas average hitting $3 a gallon for the first time in seven years nsllowing the colonial pipeline raom wear are attack we have the latest on it "squawk on the street" will be right back - [narrator] grubhub perks give you deals

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another session with tech under pressure here continuing the fall this morning. alphabet, microsoft, facebook, apple and netflix. joining us to talk about what comes next is brent phil it's always good to get your take good morning >> good morning, carl. how are you? >> pretty good the cpi print gets a lot of attention. if we're in this new period of rising rates and maybe tax reform and higher inflation, how does faang get out of this one >> short-term, it doesn't. our tech desk continues to see selling monday was the fifth largest sell in tech and a lot of our clients are going underweight. as the economy opens they're going to other names they're going into ups they're going into target. they're going to other places than tech. and we think that will be short-term everyone will come back to the group at some point, but as

we've said, tech is in a time-out, and we think it's going to last here for a little bit. but we think it's not a long lasting issue. it's just a short-term, and given the multiples and where we went, last year we had a 56% increase in valuations and software we're down about 19% year to date the last three years we've had incredible multiple expansion, and that just can't continue forever. >> right so you say the time-out is going to last a little bit i'll try to get you to define what a little bit is, and maybe can you talk about your own sensitivity to rating changes, how prepared are you to start putting more aggressive ratings on these as the valuation comes in >> i think right now none of the tech stocks are acting positive off of earnings. beat, the company has been consistent it's a story we like the stock is barely moving today. i think it doesn't matter if

you're having bad results, it's over amplifying on the down. good results aren't producing any result it's hard to say on the timing we think it's probably the next quarter or so until we get in the back half of the year. and i think we try to take a balanced score card. we've had a number of volume growth names small to large. we're not overweight one sector or another i think the tech team is taking a balanced approach on this. and absolutely, we're ready to take more aggressive news. we've been lowering price targets on some of the higher multiple names clearly the downdraft came quicker than most thought like many, we were caught off sides as well on some of this. so i don't think, again, the magnitude of the move was huge last year, and we're seeing that correction this is likely the last probably for the next several months. potentially next couple quarters >> so brent, i mean, you covered dozens of companies. you have quite a number of buy ratings on a number of names

there's not any name right now you think is a good opportunity to buy today or in the next couple days given what we have seen >> we absolutely believe they're great ideas. intuit, we like the oh dependencive -- offensive component of their -- they buy a lot of stockback it's consistently performed for years. that's a story we like we're continuing to buy in large cap. in internet we like amazon stock hasn't moved it's outperformed facebook and google year to date. we think amazon is starting to look really interesting on some of the parts that's a great story e-commerce business decelerates but ews and ad business are accelerating that's another great balance story. facebook, we put on the top pick list stocks up meaningfully we think the stock is

undervalued. $15, 25 to 30 multiple on earnings not on revenue you get a much higher stock. so they're stories we're pointing to. i think the area we're staying away from is trying to stay away from the high multiple 20 to 30 multiple revenue names on software we have a couple we like long-term, but short-term, snow flake 40 times revenue, it's going to be tough for that to work short-term. >> the question is how long or when the market comes back to those kinds of themes which i don't know the answer to i assume you don't either. maybe they just -- maybe we just stick with as you pointed out, sort of the things you can look at in terms of a multiple to actual earnings or ebita not adjusted but as in amazon or facebook that's cheap. >> we've seen a sector rotation out of software. you've seen it in internet

massive underpms of software, gains in internet that's because of what you're talking about on ebita multiples. they're reasonable and you can get there on the same revenue multiple you get on software, you can put on ebita on the internet and get higher stock prices there as well >> finally, brent, i wonder for those in the camp of nonprofitable tech, does this do anything to reprioritize their mission and try to get profits over, say, longer-term investments that we've seen in the past couple years? >> the companies are saying no right now. again, i'm the life guard. i'm not in the seat of operating the companies. the companies are saying no, growth is number one so we would like to see that we'd like to see balance i think the balanced companies with good top and bottom lines are benefitting. last year as you know, companies that were go go growth were benefitting. the wins change constantly in tech right now we're in a head wind

for companies on the loss side and in multiples are compressing as a result. the winds are changing every day, every quarter so right now it is favoring that score card in that environment >> yeah. fascinating. brent, appreciate it good to see you. thank you so much. >> thank you as we head the break, lem lemonade the stock down 14% after issuing a lighter than expected revenue ar oook. shesn pace for their worst day in more than two months. stay with us the remarkable gx and lx. lease the 2021 gx 460 for $529 a month for 36 months. experience amazing, at your lexus dealer. that building you're trying to sell, lease the 2021 gx 460 for $529 a month for 36 months. - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty. and twice as fast.

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welcome back to "squawk on the street." we're focussed on consumer prices gas lines are forming due to the colonial pipeline shutdown as well frank holland is live in georgia for more frank? >> reporter: hey, good morning, morgan 60% of the gas stations in the metro area are without gas this morning as the ripple impact of the colonial pipeline continues

to hit states. north carolina, one out of four gas stations without gasoline this morning virginia and georgia, well, around 15% right now we're at a pilot truck stop behind me, it's very busy here a lot of cars in addition to trucks trying to fill up executives for the company call it a rapidly deteriorating situation. you have to remember that trucks deliver about 70% of everything that we buy in stores. pilot releasing a statement saying in part they're trying to address this situation and saying due to the unexpected spikes in consumption, there's increased strain on the supply chain and we're working hard to quickly address any temporary shortages. we also spoke to the ceo of an atlanta based trucker for stores including walmart about the impact on their business >> this is challenging if you think about where the pipeline, where the trajectory of that is, that's kind of eastern seaboard, those are pretty important freight markets, an important part of our many businesses that rely on

transportation and logistics >> and these shortages are exacerbated by the gasoline being relatively low this hack also coming during a time when there's a shortage of gas tanker truckers. their association telling us as many as a quarter of gas tanker trucks are empty because of a shortage of drivers. the biden administration easing rules on the hours the truckers can drive in order to keep fuel moving to the impacted markets back over to you >> yeah, frank, this is going to be in focus for the next dr for coming days if not the coming weeks. you factor in the fact that we talked about this at the beginning of the show. we got the april reading on the index which is watched closely by wall street as well you're seeing on nearly 28 % increase in freight volumes compared to april of last year 45% increase in freight spending as well. and then now you factor in what

is going to be higher energy prices and i would imagine it's only going to add to the higher cost, higher shipping strain to companies longer term or i guess nearer term as well. >> you know, morgan, absolutely. march there was -- the entire month of march was a record for truck rates. may is already on pace to be even higher than that. also on top of that, this summer produce season, what a lot of people call it when fruits and vegetables are shipped around the country. that's coming up right now the shipping environment is elevated. it only looks like it will get more elevated as we continue throughout the month the gas shortage another contributing factor. >> of course the fuel surcharges as well. >> frank, it's such an important -- >> i was going to say the fuel surcharges are going to push out, too, the shippers in the coming weeks and coming months maybe one to continue watching frank, thank you carl, sorry about that back over to you >> no worries. all good let's get to our etf spotlight

looking at the ticker iyk. under pressure in the early hour of trading the group trying to stay positive for the year. the etf's biggest holding? tesla down double digits year to date as the company saw the china sales down 27 month on month in april we'll take a quick break here. dow session low was minus 242. don't go away.

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and accessories for your mobile phone. like this device to increase volume on your cell phone. - ( phone ringing ) - get details on this state program visit right now or call during business hours. welcome back here is your cnbc covid update the death toll in india hitting a record again today d today as the nation reports the 21st straight day of more than

300,000 new daily cases. and india alone accounted for half of last week's total global cases. a public inquiry into the british government's handling of the pandemic will take place next year. that's according to prime minister boris johnson the investigation will likely look at why the country had europe's highest death toll and was slow to impose restrictions. covid-19 vaccines during pregnancy do not lead to an increased risk to the mother or f fetus. that's according to a research at northwestern school of medicine abnormal blood flow rates were the same for both groups and testing positive for covid-19 despite being fully vaccinated, two yankee's play coaches. no players have been impacted. >> that's going to be a situation to watch thank you. >> we're about an hour into the

trading session. the s&p is down about .9%. 4113 is the level. here are the biggest leaders in the s&p. norton life lock, and energy names higher in terms of the biggest laggards on the s&p, it is gaming names like penn national and applied materials, teradyne. >> let's get to dom tracking the volatility we've had this week >> it's been very localized to certain parts of the market. it's been the nasdaq that's been the key focal point for a lot of traders or investors because of the volatility to put things in context on a year to date basis, i put the dow in white, the s&p in orange and the nasdaq in green. it hasn't really been all that volatile for the dow and the s&p, the orange and the white lines. the green you can see there, fairly decent-sized moves, again, for the overall nasdaq.

certainly the more volatile among these particular names and the underperformer year to date. one other way to look at it is through the vix. a tracker of how the s&p is volatile, uses options prices to derive that number the vix is about 24.13 right now. the reason why it's important is you can see that we have seen that spike, the longer-term average, the 200-day average price of that particular vix is just around 23.7 we're above that level the last couple days we bumped up against there another measure of increased volatility still just trading to the average amount of volatility over the last trading days two parts of the technology trade that have seen volatile action are in the large internet driven names fdn is flat on the year. you can see wild moves over the course of the last several months on the white line also semi conductors, tracking

similarly. up and down price action there that's a big driver. and then we'll end on what is perhaps, carl, becoming indicative or the proxy for the overall trade in momentum stocks that's the arc tech innovation, ticker irkk down about 2.5% this year still up 77% over the last year. but still, that move to the downside here is what's triggering a lot of investor attention these days it's certainly a key etf that's become more popular for folks trying to track what's going on with the markets overall back to you. >> dom, i heard you talking this morning about the degree to which it is widely searched on the website. dom, thank you for that. volatility continues reign supreme. art carshcashin is with us. back to 4100 that's basically where it was when you were on with us last.

you said chop was on the way what do you think is the most important thing to watch this morning? >> well, i think the market is going to continue what it's doing right now, taking its own pulse and temperature. basically what i'm suggesting is that we're currently testing yesterday's lows and the market wants to know if it fuelled up after yesterday or whether we're going to break again. so i would watch the area in the 4100, as you say, and the s&p, the dow about 34,000 and probably a nasdaq, i'd locate about 13,10 0 so you want to watch the market. if we violate those levels, do we wind up a trap door selling? don't forget we have algorithms trading now. it's not just go-legged people anymore. so that will be a critical

point. and another factor is the yield on the ten-year. if we get to 1.7, that may be a bit of an electric shock that translates if we get an option at 1:00 in the ten-year, so rick santelli will dig into it i'm sure for you. we'll watch to see if foreigners are buying or how well that option goes. that's chritical. >> you've been paying close attention to the vix we had a surge, this four sigma event. tom argues if you look historically with surges in the vix like that over such a compressed period of time, forward returns are actually pretty encouraging what do you make of it >> oh, well, a surge in the vix is often a sign of at least a temporary bottom but i think next time you have tom on, what you need to discuss with him was we had some divergence in the vix. when the market was looking

reasonably well with the current vix, it dropped down pretty smartly while the futures discount of the vix a couple months out didn't do that. and that divergence gets we old fogey's attention. for now it looks like we corrected that divergence by shooting back up i'm not sure i'm ready to call the bottom on two days' worth of trading, particularly with the kind of moves we've had. i think, carl, my game, i'll keep watching the levels on yesterday's losses if we violate them, do we get trap door selling or are we going to learn that the market is kind of happy with the levels and maybe the bulls can get control again? >> art, you're such a student of history. i'm wondering, we keep hearing from folks on our air that we are in unchartered territory right now.

unprecedented, that a lot of uncer uncertainty, et cetera, given all of the monetary stimulus, all the fiscal stimulus, all the question marks about reopenings and what that looks like and lingering impacts of the pandemic is there another point in time from a market perspective that you can point to that says this reminds you of that time period in terms of what we're seeing as it plays out among investors >> well, morgan, i don't want to use it as a template to frighten anybody, but yes, these are unusual times but they're not unprecedented. if you look back in the period around the year 2000, and saw the dot com bubble, i would suggest to you the dotcom was, in fact, the y2k curse everybody was afraid computers

would stop working >> i remember. >> and planes. one of the key things was they thought the bank balances could disappear, the computers wouldn't work, and the fed dumped money into the system, fearing that we would all start hoarding as we got closer to the new year and instead what happened was people took the money that the fed was pumping into the system and bought new computers because they would need them and that's what resulted to some degree in the dotcom bubble. we've seen unprecedented move from the government, be it the fed or treasury, or today's case a little bit of both so it is unusual, yes. is it absolutely historic? i would tell you not if i had a couple ofmarinading, i might be able to think of a few other times, but we've had unusual markets with interference from the government, all the more reason

to be wary as we trade keep your eye on the levels. the market is going to take its own temperature and pulse. >> art, this may be a bit of a stretch. it wasn't that long ago, a few days where the treasury secretary talked about having the tools to fight inflation and we got a bit of a chill in equities for, actually, part of a session. i wonder now, though, if we get more of that kind of commentary from others, bray nard yesterday, maybe powell in the future, does that end up being market positive or is that too high a hill to climb >> well, we've got a couple fed speakers today, and we're going to keep watching them. the deal is the market is concerned. you saw it with the great interview you had with stanley druckenmiller. there are people who think the fed is not just behind the curve, they're maybe missing the

point and by the time they start to play catchup, it's too late that's what we saw with -- when mr. voeker had to come in and resolve things we had arthur miller as the fed chairman way back. we went for guns and butter. they were accommodating. inflation started to get out of control, and we all learned how painful it was to bring it back under control. so yes, we'll be watching what the fed speakers say, but the great fear here is that the fed is a little bit behind the curve. if the market begins to truly believe that, it will be a very painful change in what's going on so pay attention to what they're saying, but look right through it i mean, they're talking about inflation. sara eisen yesterday did a great interview and put someone in the corner saying lumber prices are at a record, house prices are at

near records, and you guys are buying mortgage backed securities hand over fist. that's an absolute eye point >> yeah. that was a good exchange on mbs with bullard and sara. >> dow's higher for the month by 100 points we'll soo see if it lasts. thank you. >> and remember, we're going to be fighting ray and go away. the viewers have to pay careful attention. going to be an interesting two weeks. >> thanks, art after the break, don't miss the ceo of commercial real estate services giant cushman and wakefield. that stock is up more than 80% over the past 12 months. it's up 3% right now first, check out shares of domino's pizza popping in the last hour after bill ackman said he has a 6% stake in the company, calling ate big international growth company and also saying he sold his starbucks stake as he got into dominos shares up 3. f din5%oromos

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cushman and weekfield shares up about 90% in the last year. companies are looking to eventually bring back employees to the office. the firm also posting what were the latest earnings. better than expected revenue you can see the response in the stock prices joining us now is the executive chairman and ceo of cushman and wakefield. it's a cnbc exclusive. on the conference call, you said that it's clear to you now that office space is here to stay that we're not going to see ghost towns of high-rises in midtown manhattan or other major cities as somebody going into midtown man hat an few times since

september, it's still more a ghost town than not. when is that going to change and what gives you the confidence to say something like that? >> let me start with what gives me the confidence to say that, david. we are seeing in a lot of cities around the world where restrictions are being relaxed, a pretty rapid return to the office an example, if you look at australia, where there's been no covid for some months now, we have major markets there where office back to work occupancy is very close to prepandemic levels there are markets in the u.s., dallas, where my office is located, most buildings are now at 30% to 40 % return to the office manh manhattan, san francisco, some of the major cities, though, are far behind that. we don't expect to see a real repopulation of those urban centers until probably post labor day. >> that's what you're hearing from companies at this point i mean, it's similar to what we're hearing. some will start returning people in june in a significant way and then labor day

you also said that the majority of you among major corporate occupiers that work from home doesn't work well. we've been doing it for a lot of people have been doing it far long time. what are you hearing that tells you that >> so most of the clients that we speak with have come to the conclusion that the workplace of the future and the way they'll manage workers in the office in the future will be different there will be i think a more formalizing of the rules around when you need to be in the office and when you don't. remember, david, that prepandemic, if you walked into any major office user space in midtown or anywhere else, you would find that floor occupied maybe 60%, 70 %. i think what we're going to see is a more formal recognition that it's okay not to be in the office every day i think it's clear that most companies are concluding that after a year at work from home, they're losing a lot of cultural adhesion with their people

people are fatigued being at home or wherever they are working and pining to be back in a communal collaborative environment that's the office workplace. >> yeah. all that social interaction with get the creative juices flowing. that's the conversation i've had with a numb of folks as well that are looking at this and considering this that being said, this idea of people returning to the office, the fact that you could be seeing more hybrid models, we're hearing about so-called hub and spoke implementation by some companies as well. what specifically are you pitching or offering to potential clients? how has that changed >> it's a great question and it's a very fluid situation. the answer i'll give you is an expectation, but not a certainty. most companies today, and this is evolving rapidly. it's fascinating most companies today are beginning to talk about an office environment that feels like prepandemic and so yes, for sure there are

office users that are thinking of spoke there are office users that want to use what they learned in the pandemic to change a footprint, but my hunch is a year from now most office space not that much than they did pre-pandemic >> what is that going to mean for rent, for spaces we have seen a significant fall, for example, in manhattan which by far is the largest market fall in the country? >> well, vacancies, they lag the economic cycle our expectations is that rents will trough probably a year from now, and we also expect occupancies to trough around that same period of time, and we

think that office vacancies in the u.s. and class a markets could go as high as 16, 17%, and right now we are getting close to that level and that's going to have pressure on renters, as i mentioned. we do expect a full recovery of office rent and occupancy by the end of 2023, and that, again, being fueled by the creation of new jobs, expansion of businesses which always occurs in a recovery. as we are all seeing right now, the pace of this recovery is frankly stunning, economic recovery, and that's going to drive office occupancies and job growth, which we are seeing. >> which obviously would be a help to your business, which, by the way, you navigated the crisis well and we like to focus on office space with you, but i do want to acknowledge the very strong performance of the company. always appreciate it thank you. >> thanks, david coming up on tech check this

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let's get a check on the markets as the selling accelerates here the dow down 1%, and the nasdaq is the biggest under performer, down 2% right now. stocks are sliding for the third straight day this is on the heels of the hotter than expected consumer data this morning, and the dow and s&p are on pace for the worst weekly losses on a percentage basis since late january, but first as part of asian-american pacific islander heritage month, our own anchors and reporters, and here's the ceo. >> i had amazing role models growing up, and they taught me how to deal with diversity, and adapting to the norms and taking risks and that allowed me to

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stocks costing some ceos billions this week i'll get out my very tiny violin as robert frank gives us the detail >> the top of the nasdaq erasing $1 trillion in share holder wealth, and elon musk down $30 billion over the past month alone, and he's flat for the year based on existing shares bucontinues to receive lots of money through the option grants, and he's still the richest person in the world behind jeff bezos. jeff bezos is down $7 billion, and all that from prearranged share sales. another smart seller has been the ceo of pallen share.

he has sold over 400 million shares and received options and grants over $1 billion last year, so guys, a lot of these guys are down but they have taken some money off the table >> yeah, got to wonder, though, in terms of the amazon moves, all that selling by bezos, has that impacted that stock as well thank you. that's going to do it for us here, and "tech check" starts right now. good wednesday morning coming up this hour we are going to decipher the tech selloff, the slices of tech that are performing and the ones that are not, and how to position for yourself for a balance coming up next and then