stock futures are higher adding to yesterday's rebound which totalled 430 points when it was all said and done for the dow. disney shares are falling as streaming subscribers fell short of what people were hoping for two headlines driving dogecoin higher. you can bet elon musk is involved details straight ahead plus, masking confusion. the cdc says vaccinated people can ditch the masks in most settings, but some state and local officials saying not so fast it is friday, may 14th, 2021 time is going fast "squawk box" begins right now. ♪ ♪

good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. the major indices were up yesterday. big turn after the three lousy days we have seen this week. for the week, you are still talking about declines stocks still lower dow is down by more than 2%. s&p off 3% and the nasdaq has dropped 4.6% nasdaq is on track for the fourth negative week in a row. that is the first time that's happened since august of 2019. the dow is up for the month of may with the gains it saw yesterday. the s&p and nasdaq are weaker for the month of may if you check things out this morning, you will see green arrows we will see what happens this week after the gains at least in the early going, dow

opens up up 150 points s&p up 25. the nasdaq would open up 134 points the biggest mover of the three also watching treasury yields. yesterday, we saw ticks above 1.7% 10-year yielding 1.639%. and looking at the "squawk stack. there have been massive movements this week. the gains they saw yesterday have not undone things tesla is indicated up 2.8% the first four days of the week, tesla was down 15% same for the ark innovation fund cathie wood's fund bitcoin moving back up above 50,000 i saw it yesterday around 3:00 p.m. and it was at $48,500 you were looking at big swings

these were coming back from higher levels if you were looking at friday a week ago apple and amazon up. keep an eye on the stocks. those big moefrsvers have come . >> i saw it at 46,000. at one point it was down there overnight, i like this i have one thing to say about the colonial restart it is fascinating how many times these guys have done this and made millions. they sold colonial crypto stuff for 5 million. the good news is they got $5 million. the good news is they got $5 million. the bad news is it only worth $11 million now. where did it go?

the other thing. the encryption stuff they sold didn't work. >> i know. it is taking forever to put it back up. i wonder if that $5 million is correct. remember earlier in the week, all of the news agencies seemed to get the tip that no ransom was paid and none to be paid then reversed yesterday and news organizations quickly followed with that to say it is $5 million. they don't want to talk about this because the fbi doesn't want to talk about ransom. i don't know we know the truth to this point. >> if you are a private company and it is either $5 million or $50 million. that is, unfortunately, what it will take. it is easier with crypto you don't have to drop the bag off somewhere where police have it staked out. >> that is thepoint. that's the conundrum with

crypto you can talk how cash is used for illicit purposes crypto is used for more illicit purposes. >> the doj and fbi investigating with finance they will look into it because of that. tax avoidance from the irs or tax evading. or laundering or illicit activity authorities are on alert the colonial pipeline brings it into the spotlight. >> definitely. and musk is saying maybe we're not taking bitcoin we may accept dogecoin for real oh, we may talk about and that later. he is not for real he bought more >> maybe it is by the way, it doesn't take up as much energy >> it's not real the energy is used for a reason. let's talk masking

the big story beyond colonial pipeline and bitcoin has been this the new cdc guidance on masks issued yesterday telling people fully vaccinated people no longer need to wear a face mask in most settings indoors or outdoors. there are exceptions including health care settings or public transportation or businesses that require masks here is cdc director dr. rochelle walensky. >> anyone who is fully vaccinated can participate in indoor or outdoor activity, large or small, without wearing a mask or physical distancing. if you are fully vaccinated, you can start doing the things you had stopped doing because of the pandemic we have all longed for this moment when we can get back to some sense of normalcy

>> not everyone, though, is ready to ditch the mask. it is creating a lot of confusion. the minnesotagovernor plans to lift the mask mandate today, but mayors of minneapolis plan to keep them in place officials in nashville, tennessee, said they would keep the mask mandate and then changed their minds. ordering the mandate lifted 6:00 a.m. eastern today speaker pelosi will keep the mandate for the floor of the house of representatives kroger will require the mask cvs says it is evaluating. lots of questions how this gets handled. i'm not really sure. i will say to me, the contradiction is and maybe i understand it in a medical set setting. i don't get it if we're saying you are vaccinated, you're fine, then i don't understand the public transportation story >> you are not really trying to

explain it in science, are you it always had science behind it? when were we doomed? what is the date of the doomed comment? has it been a month since the doomed comment when we were doomed? we were doomed a month ago >> the bigger issue is how do you know -- >> the peer review papers on masks that came out? >> the bigger issue is how do you know who is vaccinated now is it the job of the grocery clerks and the flight attendants and everybody else to find out are you vaccinated and then have to police you if you wear the thing or not most places in the workplace, you are not allowed to ask if they are vaccinated. >> the issue is bill maher and the eight yankees that are contagious. >> you see the eight yankees

that are contagious and claim they have been vaccinated? i want to talk to gottleib about it i would like to hear more on that i would like to hear if they didn't get vaccinated. >> it is is 60% for j&j, there will be breakthroughs. >> if it is 60% or 70%, it is not that all people are getting it the yankees thing, i'm with becky. totally wrong and weird and strange about that particular situation. >> by the way, we need to know more it is important. this is being used as an issue for potentially spreading this information about the vaccines if there was something in between, if they were vaccinated

and got it before the two-week period was up, we need to know that that is making people look like the j&j is a scam. >> i wonder in the longer term is whether what the cdc is doing now is part of some strange behavioral science experiment. we talked with dr. scott gottlieb when the cdc hasn't lifted the mandate. he said this on the air and others have talked about it. encouraged enough people to get the vaccine. there is a view that some people in the country if i have to wear my mask anyway, why should i take the vaccine i wonder if there are other things happening here beyond -- i'm with you on this, joe, as well it may not be science. this part. >> that's it march 29th

that's when. march 29th cdc director warns of impending doom it was more than a month it was more than a month i thought it was a month when we heard that you know what? i'm not complaining. it's much better i'm very happy for disney. streaming sucks. we need to open these parks again. obviously we will have that story in a second. they missed by a mile. 109. they are 102 million what happened? >> they said they met internal expectations i heard a lot of commentary on this whether it is choppy or if you see things coming back and forth. good content >> the 7 million smartened up and went to peacock. the price of the plug there. price of dogecoin up

overnight after elon musk said he is working with efficiencies. potentially promising. buy a tesla with a dogecoin. teslawould stop accepting bitcoin due to environmental concerns dogecoin fell significantly after the appearance on "saturday night live." separately, publicly traded crypto exchange platform coinbase will offer dogecoin in the next six weeks it has grown to be the fourth largest crypto by market value worth more than $69 billion. i did see a lot of stuff about what it goes -- how much fossil fuel dgoes into the production o a tesla car and how much coal is used to fire up the grid to

allow the car to be reinvested a lot of cynics. i guess people that follow me. a lot of cynics about the whole elon musk -- very quick flip flop on bitcoin. >> true believers don't like it when people are fickle >> well, i thought elon says he is a true believer coinbase shares raising. earnings match expectations. it benefitted from volatile trading and lots of interest in bitcoin and other assets okay so much more to come this morning. take a look at futures on the move. we will talk strategy this morning. dow is opening up 137 points higher nasdaq up 135 points higher. s&p up 25 points higher. as we go to check, shares of

doordash are higher. the "squawk" returns with more ts id mning back in a moment >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. ♪ ♪ ♪ ♪ ♪ ♪

(man) eye contact. elbow pump. very nice, andrew. very nice. good job. next, apparently carvana doesn't have any "bogus" fees. bogus?! now we work hard for those fees. no hundred-dollar fuel fee? pumping gas makes me woozy. thank you. no $600 doc fee? ugh, the printing, the organizing. no $200 cleaning fees. microfiber, that chaps my hands. you know, we should go over there right now and show 'em how fees are done. (vo) never pay a dealer fee. with carvana. cal: we've saved our money, and now we get to spend it our way. val: but we worry if we have enough to last. for retirement planning, investment advice, and more, look for a cfp® professional. cfp® professionals can help you craft a complete financial plan that gives you confidence today and tomorrow.

find your cfp® professional at letsmakeaplan.org. cal: our confident forever plan is possible with a cfp® professional. ♪♪ with a cfp® professional. e tseallow w tirifto w r. ol w.. wke it me annoh kp erneorki a gig r thr vis. eye t iny,whh lirs wi st t yo intnedoha

enncyo oinpeen thvefaered it me annoh kp erneorki a gig r thr vis. th is rkth irdy,whh lirs wi st t oo fm rae ofelblops and abt r sttg welcome back to "squawk box" their morning. i want to get back to the markets. after a remarkable mild week for stocks nasdaq gaining 93 points

yesterday. it is still on track for the worst performance since february joining us now is the chief investment officer sylvia, on this friday morning, try to make sense of what we saw and what just happened or importantly what happens next? >> good morning, andrew. i think it is really encouraging to see a lot of the broad based indices up this morning. the investors had a reality check. consumer prices came in high, but the jobless numbers looked good if we go back and think about this, not a lot has fundamentally changed. we have not seen a full economic reopen yet there is possiitive news outweighing inflation. i think that a lot of investors have cash on the side and the market and equity exposure is a

good place to be rather than money in your mattress although inflation is coming. there are a lot of opportunities in the market right now. they are broad based and spread across sectors yesterday was a good opportunity to come back in. i think it is partially reconciling inflation fears and money on the pocket and buying on the dips. >> you have said the word inflation now three times in the past 60 seconds. what do you think is about to really happen? >> i think it is an obsession. it is this week's obsession of the market i like to listen to the fed. don't fight the fed. jay powell is saying he thinks that just the best-case scenario of the comparison of 2020 versus this last month inflation reading tells us there could be an additional 1% baked in there. we are comparing this to the red hot period of everything being

shutdown commodity prices got hot and lodging and cars increasing in value. we have to see this as transient. it is on the mind of investors and it keeps coming up i hear it all day. if we focus on diversified portfolios and buying opportunities. it is in the background for a while. >> what were you buying yesterday on the quote/unquote dip, if we call it that? >> i love the general 5g story things like xpi. semiconductors nokia focusing on network eq equipment and infrastructure biden with the rolling out america plan i like the classic and faang stocks apple and amazon they will continue to do well

with earnings and regardless of the small bumps in the 10-year and near-term and whatnot, those are great quality companies to invest in the future i think energy and technology is the way to go. finally -- airlines -- >> can we go back to the faang everybody is down on the faang you are the first positive person so much rotation out or that is the view i don't think that is the case >> i don't think that's the case i think in my mind, seeing apple and amazon at 10% off all-time highs below the 200 day moving average. those are buying opportunities these companies touch so many parts of the businesses whether it is retail customers subscriptions or 5g or

situations where people buying ipads. amazon i don't think it matters if covid spikes or goes away completely people will keep using amazon services i think they are great long-term companies. we had this tick with a three-day return of 10% moving in stock those days are gone in the near term for the faang >> okay. sylvia have a great weekend thanks >> thanks. you, too coming up, new ransomware at attack this time in ireland details next first, a look at shares of disney earnings beat the street revenues fell short and the company missed subscriber estimates. we will look at the numbers in more detail at the bottom of the hour and show you the ceo

comments on the lifting of mask requirements we'll be right back. >> announcer: this cnbc program is sponsored by ibm. the world is going hybrid with ibm. state-of-the-art but dependable. in other words, you want a hybrid. so do telcos. that's why they're going hybrid with ibm. a hybrid cloud approach with watson ai helps them roll out new innovations anywhere without losing speed. from telco to transportation, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. good work little buddy. ♪ ♪ ♪

this is how you become the best! [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito] [triumphantly yells] [ding] don't get mad. get e*trade and take charge of your finances today. - i'm sure you've heard how grammarly improves your writing, but let me tell you how grammarly business helped my sales team. look at simon. since simon's team started using grammarly business, we've closed more deals. with suggestions to sharpen his writing clarity

and overall confidence, simon's pitches always stick the landing, which leads to more of these and these. learn more at grammerly.com/business. time now for the executive edge news breaking overnight. ireland health service has shown i.t. systems after the ransomware attack. calling the situation a critical emergency. appointments for coronavirus sflax

vaccinations have not been impacted this a reminder of the critical infrastructures are at risk because of cyber attacks and cyber terrorism. when we come back, negotiations under way on the president biden infrastructure package. we have guests on the way to debate that. that's next. and as we head to break, the look at yesterday's s&p winners and losers >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. g d. oh, elp with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap!

so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need. esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential.

♪ good morning let's check the futures. looking pretty good. good day yesterday after near-term disaster was averted it looked like we were in a lit bil little bit of a pull back.

nasdaq and the weak jobs number followed by a hot cpi number and questions about how much the fed is involved in our lives you know what? the fed is involved in our lives. the market's up because we can talk about what they're doing. the bottom line is the qe continues and the rate stays low and the 10-year is behaved after it ran up to 1.7 it's back down, too. we'll see. >> never mind. >> right what was that? what was that? monday a song like that monday >> monday, tuesday, wednesday. >> friday, i was fine. that's good. i want to sleep tonight. finally get some sleep >> what's that you say it's saturday? good-bye i'm going out to play. president biden met with republican lawmakers yesterday to talk about the infrastructure

proposal while some are optimistic a compromise can be reached, a big question remains who pays. for more, let's welcome the congress member in the first district of kentucky also, joined by new jersey congress member josh scottheimer. co- chair of the caucus and founding member of the s.a.l.t. cap caucus gentlemen, thank you for being here it seems likes things have slowed on this and we've gone from thinking this is something that is quickly pushed through to something that is going to take some time to work out the details. we did hear the president yesterday after meeting with republicans saying, yes, we talked about this, but didn't compromise on anything so, congress member comer, maybe you can tell us the likelihood of getting bipartisan solution for this >> i think it is possible. i know republicans want infrastructure and we want to

invest in the crumbling infrastructure we want to invest in infrastructure not the green new deal and socialist wish-list items that the members of the democratic caucus have suggested. if it is infrastructure, republicans are interested in trying to compromise on it we're not interested in raising taxes. we want to be interested in public-private partnership and certainly user fees. raising taxes and making major adjustments to the tax cut and job acts is not what republicans are willing to do. >> congress member gottheimer, the democrats are not united you are the one which is leading the charge asking questions over what happens particularly with the s.a.l.t. deductions. is this a situation where taxes are raised again for your con

the stituancy? >> hi, becky we are working with bipartisan group of senators working around the clock to find agreement. i think it will be around the physical infrastructure side of this the roads, bridges, rails, tunnels, broadband, work on the grid i really believe we can get there on that piece of that. in terms of the pay for -- we talked about closing the tax gap and going after the tax cheats that is $1 trillion a year larry summers said it is $1.4 trillion a year. that is a great way to finance that i agree of public-private partnerships i think use fees can be implemented. i think in the end, we can pay

for most of the physical structure. separately, as i said, if there are changes to the tax code that affect families in my district frdistrict, we have to reinstate the s.a.l.t. that is what we have focused on in the blue states and jersey. obviously it is time to lower taxes in our states. obviously that has been a very important line for me. >> josh, what i hear from you is that maybe the democrats wouldn't have enough votes to actually do this the way they have laid it out are there not enough votes in the democratic party for them to do this without compromising >> becky, doing this means doing it in two packages one is the traditional

infrastructure which is piece one. the second piece may be the other parts of the president's jobs agenda. pulling out the physical and structure out of the agenda and get agreement. that is important to work on one as the president did yesterday separately, you can address the important policy issues the president laid out i see these things coming separately that is the best way to get bipartisan agreement >> when you talk about the other votes, it is a tight vote in the house and senate are you telling me the way you see it coming together, that is two different ways are you telling me that's where the votes line up in congress right now? >> if you want to get a bipartisan deal done, that is how they line up right now the specifics of what is in the bipartisan agreement, becky, is really important and how we pay for it and how it looks. that is how we get republicans

as you point out, we will have a three-vote majority in the house if we vote on it this summer it is tight as you point out that is where it will be tricky. i think you can get done the infrastructure piece of that separately and physical piece of it of the larger jobs plan there will likely be a second vote which will likely go through reconciliation on the rest of the package. >> congressman comer, i'm from new jersey i don't want to ignore you while i got josh here, josh, man. i got to look at my estimated tax bill yesterday i think i may be a 1%, i think my s.a.l.t this s.a.l.t. thing, you have got to help the 1% you have to help all of us. >> it is not just about you. it is the impact -- >> it is always about me

>> it is a middle class issue in jersey >> they never let you do it because it helps people like me. they never let you do it why do you insist you will do it it will never happen >> i believe two things. one, a cop and a teacher in new jersey in bergen county, the taxes are $15,000. in kentucky, it is $1,200 average property tax a cop and teacher get hit here not just you if we want to help in states take care of good schools and roads and great programs and things to help families, we have to have people not leave our state. they are leaving the state because of the s.a.l.t we have to reinstate s.a.l.t no s.a.l.t., no dice >> you make way too much sense you need a new party congress member comer, leave the lights on for him. he wants to. can't you hear that?

>> yeah, i can i appreciate josh. he is one of the good guys the reason that joe biden wants to be bipartisan because there are those like josh who say we will not go along with the stinfrastructure plan unless you deal with s.a.l.t. it has to be infrastructure and it has to be paid for in a manner that's beneficial to the taxpayers. we can't have all of the environmental regulations and all of these wage rates that are out of whack with what a normal project costs. you mentioned on the show many times this morning we paid for it with inflation. it will cost more today than it would have a year ago. that is unfortunate. with respect to the jobs plan, the best thing joe biden can do to get people to work is cut off the extended unemployment. that is the republican support

to celebrate 266,000 new jobs this week when he there are 8 million jobs posted that is not much accomplishment. we do want to do an infrastructure bill as long as it is invested in real infrastructure and done in a manner that is beneficial to the taxpayers. >> congress member comer, before we make it sound too much like a fait de compli, your party is the one that stripped that using budget reconciliation without a single democratic vote would you support what congress member gottheimer is saying. would you be in favor of that? >> i think it is unfortunate what people in those high property tax states are paying for property tax it is unfortunate they are not getting to deduct that or the

state income tax i would be open to that. i'm for fair taxation and i agree with paying their fair share. instead of raising taxes, i am a proponent of looking at the tax code and eliminating tax deductions and credits to make sure that everyone pays their fair share that is a better strategy and all-out raising taxes. >> becky, did he say yes >> we solved this entire thing in six minutes we solved this whole thing >> the whole problem >> please, please. >> comer, i'm sending you a button today >> let me be transparent here. josh aligns with most of the democrats in washington. they look at the world different. we can sit down and get an agreement. i don't know about pelosi and the squad and the rest of the colleagues. >> the squad i love it.

there's a name for them. >> we can only hope that things could turn this easy in washington gentlemen, thank you for being with us this morning go ahead >> you should host more of these. you are solving all of the problems. >> problem solvers oh, that's taken >> that's us okay coming up, we have new data on just how much the global chip shortage could cost the auto industry we'll talk about it next. a rough week for tech stocks we break it down with ceo henry blodget. hey, guys! they have customized solutions to help our family's special needs... hey, graduation selfie! well done! and voya stays by our side, keeping us on track for retirement... ...giving us confidence in our future... ...and in kevin's. you ready for your first day on the job? i was born ready. go get 'em, kev. well planned. well invested. well protected. voya. be confident to and through retirement.

in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7.

every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. welcome back to "squawk. we have an update on the chip shortage the shortage is expected to cost the auto industry $110 billion in revenue this year that is up from $60 billion that was released back in january the report says the production of 3.9 million vehicles will be lost this year alone joe. thanks, andrew coming up, disney ceo telling cnbc about the latest quarter and the mask mandate guidance mes to the theme park business that's next.

everyone wakes up every morning to a world that must keep turning. the world can't stop, so neither can we. because the things we make, help make the world go round. they make it cleaner, healthier, and more connected. it's what we build that keeps things moving forward. so with every turn, we'll keep building a world that works. these days you have to keep everything moving and reinvent the wheel. 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.

disney ceo calls the cdc's mask guidance big news there will be a lot more comfortable people in orlando. we're thrilled to be able to do that it speaks to the ability of our guests to come in more significant ways to our parks. right now as we speak we're already increasing the capacities to our parks given the guidance that we've gotten >> this could create more challenges for disney's streaming business, i guess that's what the market or market participants are thinking, which

saw some slow growth, the streaming business, in the most recent quarter sending the stock lower as you can see joining us, sarah fischer, media reporter at axios and tom rogers, tom was the first president of nbc cable founded, also cnbc's contributor, former ceo of tivo. i guess it goes back to the comcast, disney, there's bad blood. i don't like disney. i guess because i'm a company man, but i've got to tell you, i think the market's all wrong here it's like traders must be living in the past. you miss your streaming numbers by a little but everything is opening up, theme parks are opening up, you can make movies, based on the characters, suddenly you can sell those again, how can they possibly be looking at this as half -- only half -- or half empty instead of

half full? >> well, joe, your thesis is not one i disagree with at all i think the market's gotten ahead of itself when it comes to assessing des any's future probably the nicest thing you can say about this quarter, whatever happened to netflix, disney got hit with the same thing. disney's got more to prove than netflix. netflix doesn't have its revenue per sub declining. netflix doesn't be have most of its subs coming in from very low priced ones in india where people seem most attracted to cricket rather than disney programming. netflix doesn't have to make up for a core business that is unwinding. disney channel in the middle of covid with all kids at home had its ratings declining 40% year

over year. disney has a lot more head room for growth because of netflix because it's just getting going so you'd expect more growth. where it really needs to make progress is on engagement. we have to be honest about what's attracting kids now hulu held its pricing which was good to see, but at the same time, again, over covid, hulu grew year over year total 9 million subs, and the thing that really surprised me is ad revenue per subdecreased which is a red hot advertising market for streaming. that one i don't understand. there's a lot there for disney to prove they did get out of the box really, really good. the parks are going to come back

they said forward bookings back to 2019 levels there's a lot there that the market is overlooking. >> and, sarah, so netflix, one of the reasons that their growth slowed was because their content wasn't what it used to be because you can't make things because everybody is wirg a mask you know, so disney streaming isn't up to speed but now they're going to be able to make more content i don't see why that's not going to be a net positive it got down to 85, under 90 a year ago during the hype, a little over a year ago, so it rode streaming back to doubling and so people just got fixated on that's all that matters with disney do you agree with that >> i think that's exactly what happened i think that's why that stock really shot up, although there was some momentum late last year when they started to see optimism around theme parks. to tom's point, one of the things that spooked investors

was the average revenue of user going down that's because hot star subscriptions is so low. that's concerning to me. i mean, to tom's point, this company needs to prove that they're going to be able to produce profits. it's going to be a huge problem for disney unless they can figure that out. i think for them the big key is how does this addressable advertising business that's working for hulu continue to grow in markets like india where the hot star revenue is really low. they have to focus on that if this business is going to become credible especially while growth is slowing. >> jungle cruise is coming my buddy made that movie. it's got the rock and i think emily blunt or something it's going to be one of these hybrid things, streaming but

also released. is it going to do well, do you know >> well, disney does blockbuster movies well, but disney's gotten a lot of credit for being all in on streaming and the legacy, traditional company that's gotten behind streaming. you take a look at their motion picture release policy now and they're not really all in. they set a 45 day window for theaters, which is pulling back some in terms of how much excludes sift the theaters will have, but they're not going day and date on release to streaming. they're still going to charge $30 extra for movies at home as opposed to giving it as something to really boost their streaming business they're not all in really when it comes to all their programming resources. they're still putting a lot of money into broadcast and cable

original programming, and that isn't putting it all in behind streaming. and the biggest issue i think they have is for disney really to show that it's going tostea roll with streaming. they've got to put espn plus, hulu, and disney+ together as one service and drive it as one service, both in the u.s. and globally and to your point about comcast at the beginning, comcast stands in the middle of that right now. comcast is still an owner in hulu they're going to have to buy them out for a big price tag they should probably get that transaction done sooner rather than later i really think it's standing in the way of disney really putting it altogether, collapsing it into one service and having something that i think is going to be far more formidable than the three services acting alone even though they operate as a bundle. >> i'm running out of -- i've run out of time. i'm running out of call my agent

episodes and mayor of something -- east town maybe >> lupin i feel like i'm giving you a recommendation every week now, joe. >> got to go thank you, sarah thanks, tom. good to see you. we'll be right back. 've createdw way for you to sell your car. whether it's a year old or a few years old. we wanna buy your car. so go to carvana and enter your license plate answer a few questions. and our techno wizardry calculates your car's value and gives you a real offer in seconds. when you're ready, we'll come to you, pay you on the spot and pick up your car, that's it. so ditch the old way of selling your car, and say hello to the new way at carvana.

you packed a record 1.1 trillion transistors into this chip i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you become an agent of innovation with invesco qqq

stocks continue to stage a late week come back. futures are higher the opening bell is straight ahead. dogecoin soaring on a tweet from elon musk this time news it will soon be listed on coinbase as well we're going to break down the wild crypto trades over the last 24 hours and help wanted. why restaurants, hotels and other industries are having a hard time finding workers with so many people out of work we'll debate the economic impact of the enhanced jobless benefits plan as 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. u.s. equities this hour are looking up after what's been a wild, wild week. let's show you where things stand. the dow looks like it would open up 141, 142 points higher. nasdaq 128 points and s&p 500 up 25 points. joe? >> thanks, andrew. had a long discussion about disney, but the shares themselves are under pressure despite better than expected first quarter profits. disney introduced a lower price streaming service in overseas markets. that was below 90 if we had a long-term chart. on the back of the great numbers and launch of disney+ the stock did recover really nicely and, i don't know, it's a big drop today based on what should be

positive news for theme parks and everything else with the masks from the cdc that we've been talking about is it doge why not call it doggy? that seems better. dog meme and everything else dogecoin is surging this morning. elon musk once again tweeted that he's working with the cryptocurrency's developers to improve its efficiency dogecoin plummeted last weekend after musk jokingly called it a hustle on "saturday night live." more on this merger between pop culture and call thisfinance later. the bidding war for kansas city southern could be nearing a conclusion the company's accepted a $33.6 billion bid from canadian national railway putting aside a previous $29 billion deal with canadian pacific

canadian pacific has five business days to make a new offer. the dow's having its best day since late march yesterday when we were up significantly after having one of its worst days since january the s&p 500 chalked up its largest one day advance since early april. both remain on track for the largest weekly losses since the week of january 29th dom chu has the latest on what else is moving in the pre-market hey, dom. >> happy friday. tgif, joe. the dogecoin and the cryptocurrency trading let's sum up what's happened over the week. it's one that's predominantly to the down side. the dow industrials have been your performer down by 2% the s&p is off by nearly 3%. 4.5% losses. that's been the epicenter for many traders and investors with the recent down side volatility

in the market. over the long term, you did like to show some of the long term to show the context, the nasdaq composite has been up massively. it's up 46% over a one-year period on an index level but it's here that's causing some questions. we've seen a little bit of a decline here, 12%, 9%, 12% declines roughly 8 to 9% declines you can see j some traders and investors are buying the dip on this particular mentality. this is just the level where some of the previous pull backs have been. we'll see if that continues more the epicenter stocks that we were focusing on today in the premarket, travel and entertainment. royal caribbean up on the mask mandate reductions megacap technology and consumer discretionary in apple and tesla. the ark innovation fund. i will note that tesla and apple both touched or are touching their 200 day average price, their long-term trend prices

keep an eye on those the ark innovation is trying to recover. it's up 2% for the premarket trade. you mentioned doge we'll show you bitcoin and ethereum, ether. bitcoin up 75% and bitcoin up 442% on a year to date basis it's the near term here that's catching investor attention. the huge move in ethereum prices bitcoin has pulled back. that trend in cryptocurrency playing out as well. back over to you >> thanks, dom dom, they told me to waste a little time with you, believe it or not >> they did not. they did not >> they did. i'll tell you how i'm going to waste it i'm going to waste it in a really good way. isn't byron nelson on the golf channel and on nbc have you ever sunk a 55 foot eagle putt that's what jordan spieth did yesterday. have you ever done that?

>> i have not sunk a 55 or something putt i have sunk eagle putz they're more in the 15 to 30 foot range >> you give me way too much credit i'm better than most statistically speaking but i am not a scratch machine. >> no, i'm talking about it. you've got the tempo you don't rush you don't rush that's the whole key golf is not rushing. chips on everything, on putts, on everything. >> he's in the lead. i think spieth is back, don't you? >> i have -- i'm going to pay close attention because prepandemic i was actually supposed to play in some of these pro ams in the texas swing. >> oh, yeah? >> i was just about there and then the pandemic hit. i was kind of hoping that we would see some of these bets again. i always like to -- i never played golf in texas before. i've been there, just haven't

played golf. >> i've played at the four seasons down there, one of those. nice beautiful. in las vegas you know what, now they're telling me let's move on so they tell me to do it and then they say, no, now don't do it you know, it's like passive aggressive >> maybe, joe, if you have time in the 8:00 hour we'll see if we can do a little stuff. the movers of those tombstones. >> not my fault, andrew. >> too much of a good thing. move it along. >> not my fault. >> now we're going to move it along. someone's got to have some law and order going on here. we're going to talk a little bit about the cdc's guidance on masks that was issued yesterday because it's causing a lot of confusion. it is good news but we'll see. cdc saying fully vaccinated people no longer need to wear a facemask or stay six feet away

from others in most settings, whether outdoors or indoors. however. here's the however part. there are exceptions including health care settings, public transportation or businesses that require masks now not everyone is on board as i just mentioned, confusion is relatively rampant. in minnesota the governor there planned to lift the state's mask mandate today but the mayors of minneapolis and st. paul plan to keep them in place meanwhile, officials say they would keep the mask mandate and they changed their minds that mask mandate is lifted as of 6 a.m. eastern time today house speaker pelosi said she plans to keep the mask mandate in place for the floor of the house of representatives if you're going to the supermarket at krogers, they're going to require you to wear a mask cvs is still evaluating as so many others. we'll speak to dr. scott gottleib later in the show about all of this and what it means,

what the science is, what the behavioral science may very well be pushing some of this but i think a lot of those that are vaccinated are happy but then those coaches on the yankees, becky, i still can't understand it. >> look, i think this is a reflection of two things first of all, it's a reflection of the fact that we're already doing this people are loosening up. they've figured out they're vaccinated, they feel more comfortable. being outside and being inside with people. and it's a kicking of the can. the cdc is tired of being the one that everybody looks to. they all do what the cdc says. now all of those places are going to have to make their own decisions and you're hearing that and watching it play out. it's going to be a little messy. if you know everybody's vaccinated, that's one thing how do you police that that's why you have kroger

we're going to keep this in place. you have the tsa saying this is going to stay in place for people flying on airplanes until september. we'll see. it's going to be a little messy but it is a reflection of what's already happened. when we come back, dogecoin surging. bitcoin's turn around and much more we're going to talk all things crypto and whether the digital currency is sustainable. check it out, bitcoin up by about 4.3% this morning. ripple up by 11% dogecoin up by 35% futures in the green dow futures up by 150, nasdaq up by 140 s&p up by 25 "squawk box" will be right back. esg is responsible investing. who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance.

as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential.

e tseallow w tirifto w r. ol w.. wke it me annoh kp erneorki a gig r thr vis. eye t iny,whh lirs wi st t yo intnedoha enncyo oinpeen thvefaered it me annoh kp erneorki a gig r thr vis. th is rkth irdy,whh lirs wi st t oo fm rae ofelblops and abt r sttg

i think crypto is here to stay you can see that we react to a tweet, we'll react to one-off headlines. as we've shared with investors, this is a long-term investment we believe we are just starting to get to the potential of crypto but it could be a bumpy journey. >> that was the cfo of coinbase talking to jim cramer about the wild swings in crypto. it is happening again this morning. take a look, the price of dogecoin jumping overnight this after elon musk tweeting working with doge developers to improve system transaction efficiency potentially promising.

joining us is the cso of fi fintech. >> thank you so much for having me >> let's go straight into this dogecoin, elon musk, bitcoin environment story because i actually think they're all potentially interrelated what do you think has just happened in the last 48 hours? >> i think -- let's look back at the history, right we talk about technology, we talk about '97, '99, then the whole jump and then the whole dump of technology at that point. everybody thought, okay, the tech bubble is over and it's never going to come back it's coming back much stronger united nations is talking about having it as a part of basic sustainability now imagine what's been happening in this space.

you have one influencer who basically decides oh, bitcoin is great, this is the problem, and moves the market accordingly same thing with dogecoin, moving the market i think the way i would look at it is different influencers are feeling their way. they have finally realized this is here to stay. the cryptocurrency, blockchain technology, they have to jump on the board. where do they jump on the board is fine. some are seriously going with deep technology. people like elon musk are now feeling this is a new domain i can own this domain and i can just be an influencer and creator. i'm still trying to figure out the fascination with dogecoin. the founders, they actually launched it. it's the fun currency. and if a meme fun currency is something -- >> but here's the question >> yeah. >> are any of these things really currencies at this point? i mean, we can claim there's

stores of value, we can claim people are ascribing value to them some people believe that these are the equivalent of various protocols that were built over the years on the internet. the question is does that have unto itself inherent value or not? so you could have lots of protocols, different technological protocols that are used to transact the question is do they necessarily unto themselves have to have value? >> well, but it all goes back to what do you think is a value sitting in the u.s. with the u.s. economy it's very difficult to think, but if you are from africa, like people have been through that in nigeria, argentina and venezuela, when you think about the global economy where you can't trust your government, you can't trust the note in your hand that it will have any value, then the currency not run by people becomes the most valuable.

in fact, even in our country, if we keep adding deficits after deficits, what -- at what point do we say that the dollar, which i hold in my hand, is going to have a value tomorrow? and i think that is where we are moving during the covid i strongly believe that during the covid one of the reasons for the cryptocurrency to jump upagain is that just factor. what do i hold in my hand versus what's going to drive this market >> i guess my question to you then is, a, are you a believer that bitcoin is the holy grail, but it is the currency or the asset that given its brand value, we've talked to sam druckenmiller this week seems to think it has a long future, but then how do you think about a dogecoin that emerges out of nowhere or an ether or, look, i'm a big believer in blockchain i'm a big believer in great

innovation so i would like to think two years from now somebody's going to come up with something given -- more clever, more innovative than ether, for example. >> no, i -- i absolutely agree with you i would divide it into three questions. very good questions. we talk about these with students all of the time look at your first question, bitcoin. the way i think of bitcoin is a global currency. individual countries will continue to have their stable coins, could be usdc, irnc, leta, anything, but then you go into country, then you go global you have to use a system like bitcoin because you cannot stand in the same room and one is indian and one is american and can't transact to each of us standing in the same group of three days to five days. that's how i think on a globe, bitcoin completely covering the globe. within your country, as a nationalist i want my country to have a power of money.

now your second question around ether or other things, dogecoin, i am not a big believer. for me it started as a joke. i mean, vitali just launched now let's make it the next currency i think there is a way a lot of gamers love it but that's where i love it. now coming to ether. ether is a gas money i think the reason we are seeing the value of ether going up, because like this morning it's because utilities are up, products are being built on. those are taking the prices up for me, it's petrol, gas >> fair enough we appreciate it great to see you >> thank you. >> we've got to jump because we're up against a hard break. we appreciate it hope to see you again soon >> thank you >> thank you coming up, republican led states opting out of enhanced

unemployment benefits in order to push people back into the work force that story's next. as we head to break, check out airbnb the company posted a first quarter loss and posted better than expected revenue as well as a 52% jump in gross bookings as more americans receive covid-19 vaccinations and travel restrictions ease. wells fargo upgrading the stock to over weight on a strong player the future of remote and hybrid works but keeping a price target at 200 from now on, i'm going to identify as being vaccinated that's how i'm going to identify see if that will work. we'll be right back. time now for today's aflac trivia question. who is the parent company of the ggnoal dining restaurant chain maia's the answer when cnbc's "squawk box" continues go aflac!!!

what the heck, troy - that's not your kid! the aflac duck is just covering for sophie. same way he got me money to help cover her hospital bill when my health insurance didn't pay for all of it. but this isn't fair! that's exactly what i said! but then i learned health insurance isn't even supposed to cover everything. wait...for real? for real real. luckily i had aflac. aflac!!! get help with expenses health insurance doesn't cover. go aflac! !mm-hm! get to know us at aflac.com. ♪ 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. now or in the future. with an annuity in your plan to help cover essential expenses, you can live the retirement you want.

the right financial professional can show you how. this is what an annuity can do. ♪ ♪ competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute.

hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world. now the answer to today's aflac trivia question. who is the parent company of the casual dining restaurant chain ma maggiano's the answer, brinker international.

the restaurant giant bought the chain in 1995. as the debate rages over the effects of federal pandemic unemployment benefits, more republican governors are opting out of the program rahel solomon is here. she's got a look at the legal battle that's taking shape rahel, good morning. >> hi, becky good morning yeah, so the number of states opting out of enhanced unemployment benefits is growing. it currently stands at at least 14 these states are all led by republican governors state leaders say that the federal benefits are encouraging people to stay home instead of return to work, but according to a report from the century foundation, cutting off these benefits could impact more than 1 million people within weeks. one group sounding the alarm that opting out of at least part of the program may not be legal. national employment law project sending a memo to the law department outlining that while other c.a.r.e.s. act program may

be discretionary, the language for the pandemic unemployment assistance indicates it's not. >> it states that the secretar shall provide to any covered individual employment benefit assistance while that individual is unemployed, partially employed, or unable to return to work so for the pandemic unemployment assistance program, which a lot of states are ending, that program is a requirement >> so suggesting one of two things either the dol can force the states to continue offering pua or the dol can recruit states willing to administer the benefits we have seen states do that before in the case of natural disaster as we know, states have struggled with the volume of applicants during the pandemic becky, unclear if that option would work here. the dol telling us that it has received the memo. becky? >> what happens in the meantime, rahel? >> well, again, according to

that century foundation report, it looks like in the next few weeks if nothing changes a million or so people will be cut off of benefits unless the dol steps up and intervenes. at that point -- at this point at least it's unclear if that will happen. we should say that senator sanders also sending a letter to the dol petitioning them to step up, but at this point if nothing else happens between that -- between now and mid june, becky, it looks like a million or so people will be cut off of pua benefits >> wow yet another mess trying to sort this out rahel, thank you great to see you this morning. >> okay. still to come right here on "squawk," companies like mcdonald's and chipotle raising wages. we're going to talk about the hiring push and the debate whatmay be keeping workers away we'll do that next later, the cdc making that big push towards normalcy and announcing fully vaccinated americans can go without masks we will break this down, debate it, talk about it as every

tttor.co imaginable d stt goleib coming up the rx, crafted by lexus. get 0.9% apr financing on the 2021 rx 350. experience amazing, at your lexus dealer. wondering what actually goes into your multivitamin? at new chapter, the 2021 rx 350. its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done. when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim web. because platforms this innovative, aren't just made for traders—they're made by them. thinkorswim trading.

from td ameritrade.

manhattan added 21,000 residents. many are renting thanks to the low mortgage rates and low prices april actually saw the highest number of new rental leases on record with over ,000 new leases rental prices down 21% landlords giving an average of 2 months free rent amount sales strong in the first quarter thanks to greg franklin. just starting a consulting job in new york. even though he planned to rent, he was able to buy a one bedroom in mid town manhattan for

$500,000 >> me and my brother hated the idea of paying rent. we thought, okay, we're going to pay $2,000 a month, we might as well get some of that back >> the problem is the city has a near record amount of inventory. there's still over 20,000 empty apartments for rent. over 9,000 for sale with a vacancy rate about 3 times the historical average the luxury segment actually doing the best the largest number of contracts over $5 million in over a d decade guys, as becky often says, it's not whether new york will come back, it's at what price we're seeing rents come down 21%. we'll see if there's more room to run on prices >> you didn't see the $500,000 unit or did you, robert? you know what it was like?

>> we shot it. it was pretty nice hell's kitchen it was listed for 530, they got it for 500 this was at the end of last year a lot of these deals are drying up on the sales side we're seeing a near low amount of discounts for manhattan, it was pretty nice >> awesome where? what part? >> hell's kitchen. mid 50s west side. >> that's a bad -- that has a bad connotation. all right. thanks hell's kitchen that's where i want to go. thanks andrew. companies struggling to find workers, people are opting to stay home and collect government benefits we're going to debate the programs and whether or not what was intended to help ignite the economy is actually hurting it then to a break, a little cannabis news. aurora reporting lower than expected fiscal news hit by

pandemic-related restrictions. the cannabis announcing a move in the u.s. stock listing to the nasdaq from the new york stock exchange citing lower costs. so aurora moving to the home of "squawk box. we're backig aerhi rhtft ts.

how am i doing? some say this is my greatest challenge ever. governments in record debt; inflation rising and currencies falling. but i've seen centuries of rises and falls. i had a love affair with tulips once. lived through the crash of '29 and early dot-com hype. watched mortgages play the villain beside a true greek tragedy. and now here i am, with one companion that's been with me for millennia; hedging the risks you choose and those that choose you. the physical seam of a digital world, traded with a touch. my strongest ally and my closest asset.

the gold standard, so to speak ;) people call my future uncertain. but there's one thing i am sure of...

people are not coming back to work because they get pretty good life at home right now. making $40,000 a year. all the unemployment in the united states is in service industry two industries, my industry, hospitality and tourism, and those are the low wage earners those are the service jobs those are the people collecting unemployment benefits and people not coming back to work. >> starwood capital's barry sternlicht with us to discuss whether these policies are making it more difficult to get the service industry back on its feet are kevin o'leary, "shark tank"

co-host and john hope bryant, operation hope i honestly don't know whether you two gentlemen will disagree on this as much as in the past let's find out john, do you discount that factor in terms of why we had such a bad jobs number a lot of people saying people are fearful of going back, schools aren't open so they can't really go back it's not that they don't want to go back because they have great benefits is it a combination of all of those? do you acknowledge it's at least a factor, john >> absolutely, it's a combination. good job, joe. look, you have 2 million adult men who have gone back to work in the last couple months. 3 million women who said no thanks so far. i was at a restaurant last night nobody was wearing masks except me people working in restaurants or things like that, a lot of them look like me and die prematurely

are saying, you know what, y'all get this thing situated and i'll be back. by the way, let me think about what i want to do when i come back i've never had a break before my life, i've been struggling my whole life working dead-end jobs this is a reckoning of america with regard to our dream but also possibly, joe, to a living wage i mean, are we being forced now to deal with something that we've been -- we've known was the truth for 30 years, which is that middle class wages have stagnated while you and me and my friend kevin have done really well so it's class, not race in this regard, and do we need to raise the minimum wage, the living wage, sorry? because every time we hit the bottom and give them a boost, 2009, president clinton, et cetera, the economy exploded i think this is a combination of factors, but people are making i think a quality of life decision my health or my wealth. by the way, if i'm not getting wealth, i'm not risking my

health they're saying retrain me. let me find new jobs they're not going to go work in a factory -- not a factory, a warehouse making 20 bucks, 25 bucks an hour versus this dead-end job. >> kevin, do you acknowledge some of that at least? do you say it's all about being paid to stay at home and watch netflix, why would you go to work >> we now have the benefit of hindsight in all of these government programs. let's go back to the original ppp program. i was a big supporter of it. i realize now 50% was 100% wasted it was a very blunt instrument that was to keep people employed the service industry collapsed anyway because they were closed for such a long time many of those people are getting a second wave of checks. these blunt instruments don't work we're actually sending checks to people that are already employed of course that's a bad idea, but worse off in the service

industry where i play and invest, try and help entrepreneurs build businesses with capital at risk, we can't hire anybody because we're competing with whom? the government the government's competing with us they're keeping employees away from us. we're fighting with the government they're now providing a base of employment that we can't compete with as entrepreneurs. how screwed up is that and when is this going to end? this is a big problem. there's wage inflation everywhere because we have to put out more and more capital. i used to be able to hire, particularly in the digital economy, all of this direct to consumer, small businesses in america, are achieving success with by setting up websites and trying to cry out to people on social media, that require skills that we used to pay 56,000 for average writer, videographer, web developer. you know what it costs now 97,000 is the average. that is wage inflation why? a, yes, there's a lot of demand

for that, but a lot of these are not registered as employed the government's sending them free money every day it's crazy it's a huge mistake and i've heard academics come on the show and say there's no factor. wrong. it's just not true i'm living the reality of it and it's a mess. >> so, kevin -- >> go ahead. jim cramer says the same thing he has a bunch of different businesses and he says unequivocally that's what's happening with one of his restaurants in brooklyn, john. >> so, kevin, first of all, i'm not an academic, i'm a entrepreneur just like you i'm averaging paying $16 on the low end and $50,000 on the median i have no problem hiring people for purpose in their life. if they can't get paid they want purpose in their life and they're glad to come work for me and others i think restaurants need to reimagine their level. there's stimulus in this package to get over that hurdle.

we've got to pay people more or give them different training and skills and, by the way, this hype hyperbole is ridiculous. one, it was henry ford who doubled wages, a capitalist in the early 20th century and he created the middle class and his company just took off like a rocket everybody else failed. so he created new plants by doubling wages people didn't want to go to dead end jobs or where it's too risky. it's almost like a duplicate copy of what's going on here kevin, i love you, this hyperbole, airlines are dead, stimulus money is going to kill them the can was kicking me in the knee in the airline getting a seat they're over sold. the airlines are back zooming again. so much for we don't need airlines again we need a business plan that includes all of us, joe. 70% of this economy is consumer

spending so like my rich friends need my poor friends to do better if only to stay rich including me and kevin let me remind you it was the fed window that kept my friend kevin and us in a nice cool place on wall street. it was the fed window that kept wall street with access rolling. come on, we need all of us now to battle the real battle, which is a war that -- in the u.s. trying to take our seat not us arguing over this silly stuff. >> nothing silly about this, john >> it was nice and cool because of wall street where you live. >> i'm talking about -- when you disrupt the market, when you change the proportions of employment in different regions of the country and wages are different and you just start sending checks to everybody regardless what the baseline was before, you can't tell me the cost of hiring somebody here in

orlando is the same as san francisco. they're all different regional areas. all small business is regional john, this coombaya stuff you're talking about has screwed up the market, has done exactly what we didn't want to happen. you want purpose in life, it's not sitting on the sofa getting a check from the government. that has no purpose. it's time to get back into this economy. it's opening up everywhere now we have to compete with checks still flying in from the sky from a helicopter. free money for everybody that's ridiculous way. that's not the entrepreneurship anymore. it's not working it's causing a huge disruption in the markets in the service industry i'm dealing with everyday. it's a mess. i don't care what everybody tells me when i have to hire people and they won't come in, they don't show up because the government is my competition, i'm sorry, that's just not right. that's not america there's something really wrong here >> joe, let's deal with the

numbers. he loves the numbers let's deal with the numbers. you make $12 an hour 40 hour a week you have a family of 3 that's 25, $26,000 that's below the poverty rate. you're telling me that i need to be excited about getting up at 12 bucks an hour, 40 hours a week to go to a dead-end job with three children to be under the poverty rate we have got to do better as america. we are the largest economy i can afford to pay that lady 15, 16 bucks an hour i can. and i do and the federal government and employers need to work -- even mcdonald's raised their rate -- incomes last week. if mcdonald's is raising their rates and amazon and walmart, guess what you can too, kevin you can afford to have a few less vacations or whatever it is, you and me we can afford to give people a better standard of living. it's not going to hurt our standard of living this is a ridiculous argument. we are going to go broke if we

pay them 3 million white women, black women, are not sitting at home because they're lazy that's the number. they checked out because it was unhealthy, their government leaders are not safe and protecting them and they don't feel appreciated kevin, that's no different than you and me >> john, you want to take care of all of these people, you let the economy do its thing you let the market be the market we're going to get 8% gdp growth in the back end of this year we don't need the government anymore. we don't need being mandated i'm happy to pay the people whatever the market tells me right now it's being inflated by the government, a falsehood. they're not the economy. that's like tax dollars being wasted what i want to see happen is unleash the power of the american entrepreneur and don't have them fighting with the government to employ people. we'll take care of everybody that way we had a booming economy and now he's thrown all kinds of crazy stimulus in here we don't need just let it be the market and watch what happens

i can't stand the fact that there is this falsehood in it now and it stays there it should be over. we don't need more ppp we don't need more checks. the economy is on fire and now we can't fix it because the government is making it very difficult for it to stabilize the way it should. it's a mistake, john, and it's wrong. you can't do the kcoombaya stuff here the market is trying to get on its feet the way it always did for the last 150 years this stimulus package is unprecedented and it's got to stop. >> we have to leave it there this could go -- i figured we -- i could sit back and go home at 9 and let you guys go. that's not what we can do. kevin o'leary, thanks. john hope bryant, we said you've got to take this on the road and you have we're going to keep doing it thank you both we'll do this again soon andrew >> let's show everybody futures at this hour because we're powering higher in the green

pretty much across the board we've got the dow up about 178 points right now nasdaq looking to power higher 141 points at the moment s&p 500 looking to open about 28 points higher. after the break, we're going to talk about the market's wild swings as we find out where you need to be putting your money to work then at the top of the hour, henry blodget is going to talk to us about the turbulent tech, the market and conversation you don't want to miss we're back after this. ...is something you won't regret. craving pizza. personal assistance, 24/7. one of the many things you could expect when you're with amex.

e tseallow w tirifto w r. ol w.. wke it me annoh kp erneorki a gig r thr vis. eye t iny,whh lirs wi st t yo intnedoha enncyo oinpeen thvefaered it me annoh kp erneorki a gig r thr vis. th is rkth irdy,whh lirs wi st t oo fm rae ofelblops and abt r sttg

this week saw some wild market swings so let's talk about what you need to know before we head into the weekend. joining us right now is lisa shall let. chief investment officer for morgan stanley wealth management also joe taranova. cnbc contributor welcome to both of you this has been quite a week joe, let's start with you. are we done with this? was this a whoa, here we go and never mind >> i think we need to distinguish when we say big tech names between established growth and emerging growth. i think as it relates to technology, investors want quality, whether it's microsoft, alphabet, lamb research.

on the other side, high beta, longer growth, longer duration assets as long as the economy stays in the replace naryury state, there will be vulnerability and volatility for the names i don't expect that's going to end any time soon. >> lisa, what do you think if you look at tesla, it's up today. if you look at bitcoin, it's up today. if you are looking over the course of the week, tesla down 15% over the first four trading days that does tend to get people to sit up and pay attention what would you be advising clients when they ask about stocks like these, the high flyers, some of the big tech names? >> so, you know, look, i think directionally we absolutely agree with joe that, you know, now is the time to be a stock picker, to focus on quality, focus on the ability to achieve earnings and when it comes to the selloff that we've seen in some of these tech names, you know, look, i think we're going

to see this re-adjustment in -- to higher interest rates in fits and starts over time and as a result, you know, the strategy that we're recommending is to be a stock picker. and, you know, we've been in a long period of time, the last 12 years, when many of these names traded as a block. you know, traded as a sector and i think that we're starting to see some of that really break apart with stock specific risk taking the lead. our sense is there are companies that are more growth at a reasonable price and can achieve the earnings estimates that are out there and there are others, we've already seen even here in this first quarter, that are making execution mistakes or missing numbers. those are the stocks we're

avoiding. >> lisa, the one thing i'll say watching the selloff and things pick up where you saw the averages get down a bit, the buyers came rushing back in. every time you see a drop down, do we ever see a 5%, 10% pull back in the major averages again? >> you know the answer to that is of course >> when? >> we -- well, you know, look. history suggests that, you know, in any 12-month period the odds of having the 10 to 15% draw down are really pretty good. we haven't had one in a while. our contention is that you're approaching that moment when we will see a 10 to 15% correction in large part because we all just need to accept the fact that we're past the sweet spot, that we're at what we call peak

everything peak accommodation, peak year over year earnings, peak earnings revisions and, you know, peak gdp growth. and from here policy most likely on the margin is going to gibb -- begin to tighten whether we're talking about the fiscal cliff, the federal government slowing or the fed actually having to begin to talk about tape perfecting, which we do think happens beginning of 2022 >> right >> joe, very quickly you like the financials. why? >> i do. very similar scenario to what we witnessed in 2009, 2010, '15, '16. you have energy, materials,

financials, the last point is lisa mentioned the fits and starts as it relates to yields the trends are improving significantly and you're seeing yields move higher in germany and that's impacting them. >> joe, lisa, thank you both okay coming up when we return, tech having a bumpy week. we're going to break down the adnes lity and talk today' helis with insider ceo henry blodget. "squawk" returns after this. front desk. yes, hello... i'm so... please hold. ♪ those days are done. ♪ i got you. ♪ all by yourself. ♪ go with us and find millions of flexible options. all in our app. expedia.

it matters who you travel with. (♪ ♪) whether it's a technology first, (♪ ♪) a fashion first, (♪ ♪) a science first, (♪ ♪) or a first for us all (♪ ♪) whatever you hope to achieve for your business, cloud first helps you get to value...first (♪ ♪) let there be change accenture

good morning futures pointing to an opening bell pop it's been a tough week for investors. sizeable weekly losses for the major averages pandemic relief. the cdc says it's okay to take off your masks in so many situations dr. scott gottleib is going to join us to answer them disney and doge. two stories impacting investors. falling on disappointing streaming numbers.

dogecoin surging on comments from elon musk all of that straight ahead as the final hour of "squawk box" begins right now yeah it's good. all is good. friday good morning welcome to "squawk box" lear on cnbc i'm joe kernen along with becky quick and andrew ross sorkin the futures are up 192 points. up 138 on the nasdaq the s&p up 29. treasury yields, kind of under control. 1.65 in the same range. 1.64 that we've seen we are now, becky, 2/3 of the way through this show, this friday show and 93% -- wait a

minute wait a minute. burying the lead 93% of the way -- >> 93% through the week? >> through the week. >> gotcha. >> 14th. >> it's friday, you're in love >> we don't play that anymore, which is good. >> no. >> could end there 93.3%. now probably more than that. not that i'm -- not that anybody's counting making headlines, disney shares are lower this morning i know eamon javers does he always tweets that out, weekend. the entertainment giant missing analyst forecasts on streaming subscriber growth. a fair amount. disney+ coming in with just under 104 million paid subscribers. analysts had expected 109 million. disney's profit beat expectations nicely. however, maybe that's a company miss with its revenue number but

you would think the mask news, all based on science, now we know what to do, theme parks, people making movies, people going to movies, selling products based on movies, you would think all of that positive stuff better than putting all of your chips on streaming but streaming has been the story since the stock was under 90 all the way back to 200. more drama on the ralils. kansas city southern accepting a takeover bid from canadian national railway that supersedes a deal it had already agreed to with canadian pacific. canadian pacific has five days to make a counter offer.

please, if you could, not ordering you, but if you would, check out dogecoin surging after elon musk tweeted working with doge developer to improve system transaction efficiency that could be potentially promising also giving dogecoin a boost coinbase will offer support for the crypto sometime in the next 6 to 8 weeks 93.6% now, becky, through the week no one's counting. >> the only percentage i see is up 37% in 24 hours >> that. >> i'm talking about the week. >> i know. i was looking at dogecoin. let's get back to the broader markets and what signals people should be taking away from the bounce mike santoli we could all use a weekend right about now. >> i'm maybe not even 80%

through mine but, yes. extraordinary headlines especially on the inflationary front. if you look at the way the market has navigated, it looks like essentially the fourth little pull back, down side wobble of the year to date this is a one-year chart if you take a look here, these little moves, we've had a few of these 3 to 6% decline, high to low here more than 4% if the morning pre-market bounce that would essentially be getting us half of it back usually some chopping. take a look at semis versus banks. that's a pretty good representation of what we're going to hear. they were cyclical beneficiaries. banks have kind of held serve.

not making up side new progress. semis, not only expensive but in this cap excycle, typically a bellwether for cyclical expectations you want to keep an eye they don't fall out of bed. the nasdaq dow spread got wide and it looks like it's finally back in parity with the overall market that might be a decent news for the nasdaq take a look at the volatility. after you see the pull backs this year, you have seen the ekg chart go like that now you want to see this kind of settle right back down toward or below 20 that would tell you that this little -- the kind of mini crisis has passed. we've had this twitch of anxiety and it's gone. we're not quite there yet. we'll see how he can settle out. usually if things end up being calm there is pretty heavy weight on the volatility as we get towards the end of the day we'll see if that plays through, becky. >> mike, i have a couple of questions for you.

first of all, how does today's retail sales report fare with the market we have seen the cpi and the ppi that had an impact on the market could retail sales have an impact >> retail sales, super crieazy, way on the high side it may so lidify the idea that w have experienced peak acceleration in terms of activity everyone is watching how fast consumers are spending down that buildup of savings and the stimulus checks. retail stocks, great performance year to date not so much in the last few weeks. that seems to say the market has priced a lot of good news. >> and then just quickly, how much money is on the sidelines how much is likely to come pouring in every time you see a pull back? that's what it felt like this week >> well, it certainly did. there were some in flows if you see the data for this week i'd say there's a large amount

of money in aggregate in absolute terms as a percentage of the total market cap right now, it's actually not that much so to me it's much more about do sellers get aggressive or not or are sellers just kind of trimming around the edges? that to me is more interesting and if we're going to see a new wave of money coming in from under invested. >> i like the explanation. thanks, mike we'll see you later. it has been a rough week for the biggest tech names we talk so much about them tesla down 13% since monday. google parent alphabet down 5% amazon, facebook, apple, microsoft. joining us to talk about the tech turn around of late, henry blo blodget. insider, co-founder. >> great to see all of you. >> let's talk about this moment because you have -- we have the faang stocks all off, we have some of the big high flyers off. ark invest, of course, which has

been this high flying etf that had so many of those names in it, also not only off because those are off but maybe even helping perpetuate some of this because people are taking the money out of that. what do you see happening here >> well, i think the sector as a whole got to a pretty frothy high valuation, and i don't -- interestingly, the core tech stocks, the ones that are profitable and growing at a steady rate are actually at this level reasonable facebook is trading at 25 times earnings, for example. i think what you've seen and what you've just outlined is the stocks that do have a good foundation of earnings and growth have traded off less than the ones that are much more speculative like tesla where you have to imagine an utterly fantastic future for that stock ever to justify its valuation. we've seen the spacs get hammered a lot of crypto has been hammered crypto is where the real speculative mania is now if you look at the core tech

stocks including some of the cloud stocks, now the valuations are okay it doesn't tell you much about what's going to happen next week or next year, but we were starting to get into a zone where a company like snowflake that is growing as fast as it's growing, you know, 6 times revenue, that seems okay >> what about tesla? what about palantir? >> tesla -- tesla has always been extraordinarily speculative. if you look at a lot of the big tech stocks, a lot of them seem to be coalescing around ten times revenue. you do not have to have unbelievably heroic assumptions because these are companies that mostly should have a high profit margin or they're a subscription based business like snowflake that should have -- salesforce, it should be locked in tesla is different this is still mainly an automobile company it's going to have a much lower margin for tesla to be trading at well

over 10 times revenue. again, if the speculative mood breaks and people dash for cover, i think there's a lot more down side there i want to ask you about crypto it feels like we're in the mid '90s so many internet companies emerged in the late '90s many failed, then the internet emerged as this remarkable force in the economy it's very possible in my mind that blockchain similarly does the same thing the question is which ones are going to be resilient and which ones aren't? i think it's very hard to make those picks right now. but given your experience over the years, how do you think about that >> i think you've outlined exactly the way i think about it i think that's the smart way to think about it, which is you see there are good fundamental reasons why we may have

cryptocurrencies and blockchain in the future. they are certainly taking a long time to get here we'll say it's been over a decade and we're still not seeing enormous usage of it. good fundamental reasons for that to your point, that doesn't mean dozens of cryptocurrencies are all going to do well forever to me at this point, i think it's pure speculation. people like joe take umbrage at that i'm not a speculator there's nothing that's wrong with that. it's fun it's interesting but if someone is investing especially in a lot of the cryptocurrencies that are not the big names, talk about bitcoin in a second, and expecting they're going to go up forever and it's a matter of holding them, then i think that person needs a talking to. >> give me the bitcoin piece of it the other question i'd also ask you, i remember looking at amazon in the late '90s.

people called it amazon.com,.bomb it wasn't preordained because they had a big brand that was going to work. >> no, absolutely. >> i wonder whether you think the same thing about bitcoin or not. >> no, that's true with other internet stocks aol, yahoo!, ebay. they were the blue chips, the ones that were definitely going to make it as we've seen, one or two of them made it, the others went basically to zero. i think with bitcoin the big issue is five years ago the story was this is going to be the new money, everybody's going to use it. now everybody understands that it's actually not well designed as a transaction currency. very hard to do. very resource intensive. so the new story is it's going to be the new gold we're going to flip into it. i think every time we want to save money and so forth. that's possible. i also have heard many people who are way smarter than i am who invest in a lot of crypto say bitcoin's design is just

bad. eventually we'll move into much better position. if i were joe, that's what i would worry about. it's simply a matter of what somebody else will pay for it. the only thing i'll jump in on that, you should own bitcoin, is when bitcoin was 90 in 2011 when a bunch of venture capitalists said it to me, i said, this is a perfect asset for a speculative bubble it could go to a million. it could trade at a dollar or a million. >> that's nice you can opine on it and say it's worth somewhere between zero and a million without any risk to you, without ever putting your money where your mouth is. >> but that's the joy of it. you don't have to be a speculator. >> i do not have a big position number one number two, maybe it's not as big as it used to be remember what cramer said? he turned a bunch of fake money into mortgage money. >> smart well done. >> there is a time maybe

where -- nobody knows what i have, okay except me and my maker, and my boss penelope. >> good for you to convert it into dollars and real assets. >> real estate real estate. always goes back to real estate. >> you can live in a house. >> dollars so scarce and so precious so well-cared after by the fed okay that's the whole point andrew. >> buy some property, joe. henry, thank you have a great weekend >> great to see you all, thank you. >> property is good. if you can -- what do they say, if you can take a leak on it, it's good, andrew? versus if you have to feed it and care for it might not be good. >> the property can create rent. you can get fees off of it and just make sure they're not paying you in bitcoin. >> new york's looking pretty attractive down here so that's what you're going after work, scouring the boroughs. coming up, a fresh read on

retail sales as we finish up a big week for economic data plus, former fda commissioner dr. scott gottleib reacts to the cdc easing mass guidance for vaccinated americans and work and school finance professor jeremy siegel weighs in on wia ld week. stay tuned, you're watching "squawk box" on cnbc laying ] ♪ ♪ the moxie showerhead speaker. only from kohler. (vo) nobody dreams in conventional thinking. it didn't get us to the moon. it doesn't ring the bell on wall street. or disrupt the status quo. t-mobile for business uses unconventional thinking to help you realize new possibilities.

like our new work from anywhere solutions, so your teams can collaborate almost anywhere. plus customer experience that finds solutions in the moment. ...and first-class benefits, like 5g with every plan. network, support and value without any tradeoffs. that's t-mobile for business.

e tseallow w tirifto w r. ol w.. wke it me annoh kp erneorki a gig r thr vis. eye t iny,whh lirs wi st t yo intnedoha enncyo oinpeen thvefaered it me annoh kp erneorki a gig r thr vis. th is rkth irdy,whh lirs wi st t oo fm rae ofelblops and abt r sttg

coming up, what the cdc's new guidance on facemasks means for american businesses. a live update is next. "squawk box" will beig bk. rhtac . do you see the tow truck? yes, thank you, that was fast. sgt. houston never expected this to happen. or that her grandpa's dog tags would be left behind. but that one call got her a tow and rental... ...paid her claim... ...and we even pulled a few strings. making it easy to make things right: that's what we're made for. usaa. what you're made of, we're made for. get a quote today. need better sleep? try nature's bounty sleep 3 a unique tri layer supplement, that calms you helps you fall a sleep faster and stay a sleep longer. great sleep comes naturally

with sleep 3 only from nature's bounty wealth is your first big investment. a worth is a partner to. gre help share the load.lly wealth is saving a little extra. worth is knowing it's never too late to start - or too early. ♪ ♪ wealth helps you retire. worth is knowing why. ♪ ♪ principal. for all it's worth. lately, it's been hard to think about the future. but thinking about the future, is human nature. ♪♪

at edward jones, our 19,000 financial advisors listen and work with you to create personalized investment strategies to help you get back to drafting dreams and building your future. edward jones. it is time for investing to feel individual.

fully vaccinated americans can now go without masks in most indoor and outdoor settings. that's the latest guidance from the cdc. frank holland joins us with a look at corporate america's response hi, frank. >> reporter: good morning to you, joe it's been more than a year since the cdc recommended we all wear a cloth face covering to prevent the spread of covid-19 now this new guidance comes as 59% of all-american adults have one shot and we are inching closer to the 70, 80% level where we get hopefully herd immunity there's an ongoing debate about facemask mandates. half the states have one, half don't. many businesses have the mandates as well even in states and stores where the mandates are in place, we have continued to see opposition and confrontations like these over wearing a mask. the cdc's new guidance took a lot of pressure on essential businesses and their workers the union for 1.3 million

grocers, saying essential workers are still forced to play mask police who are unvaccinated are they now supposed to become the vaccination police but of course some businesses are going to welcome this change disney ceo had this to say about the impact on the company's theme park business. >> i think it speaks to the ability for our guests now to come in more significant ways to our parks. right now as we speak, we're already increasing the capacities to our parks given the guidance that we've gotten >> reporter: and we're here at a grocery chain right now. this chain will keep their mask mandate in place walmart and target reportedly will as well cvs tells us they're still evaluating important to remember, the cdc's guidance remains the same when it comes to airports, airplanes, public transit and health care settings back over to you >> thank you very much joining us right now to talk more about it is dr. scott

gottleib of course, he's the former fda km commissioner dr. gottleib, okay help us figure this out this morning. cdc guidance is pretty clear what's less clear is how businesses in particular are going to respond to this what do you think happens next >> well, look, first of all, i think cdc had to take this step. whether they took it now or a week from now, i think you're seeing the situation improve around the country many places around the country have fewer than five daze cases. half the state have less than 10 cases per 100,000 people per day. that's where the threshold is. there are states approaching 70% of their population vaccinated these are the thresholds that we would relax the provisions many states have relaxed the provisions cdc is conforming with the states and what people aspire to

do states need to interpret the guidance and they'll implement new measures businesses need to interpret their state regulations and state mandates i suspect a lot of businesses and retail locations will keep their employees in masks for a period of time longer. i suspect some stores, some locations may require masks to enter. we're in a period where the next two weeks these will be quickly washed away. and as we get into june masks will no longer be required and prevalence levels will be low. the risk to the average individual will be low as well final point, there is sort of collective hand wringing among twitter that people will say they're vaccinated and go without masks in retail locations and other sites. people are going to do that. people who will do that would have done it the other way quite the opposite this is going to provide a pretty strong incentive for people who are thinking about going out and getting vaccinated

i wouldn't be surprised if we see a bump up. now being vaccinated provides more value you can go around without a mask in an honest fashion >> let's talk about another headline we were discussing earlier in the show and that's the yankees who now have eight cases of covid among players who were supposedly vaccinated the break through of cases is something people will pay attention to what does that mean? are the vaccines less effective than we thought? is there a new strain running around that gets through what happens when these people are infected i think 7 of the 8 are asymptomatic infections. will they spread it potentially to others. that's a question people who are vaccinating are wondering. especially if you have small kids or if you're around somebody who's at heightened risk, maybe you want to be careful about them and you feel like you're safe and you're not going to wind up in the hospital >> right these are all important questions and they're all good questions. we don't have answers to them

right now. we have real world evidence from moderna and pfizer they're very good at reducing asymptomatic infection we have real world evidence out of israel and the u.s. it looked at 4,000 health care workers and showed a significant reduction including asymptomatic infection. we don't have evidence around the j&j vaccine. not because j&j doesn't reduce asymptomatic infection, but it hasn't been studied in that way because not as many people have been vaccinated. we don't know whether it reduces asymptomatic infections. i think the key is individuals didn't get sick. we know the vaccines are very effective at protecting you from becoming symptomatic, developing covid symptoms the vaccine seems to be effective in this case we don't know what the individuals are doing. they might have been in close contact with each other. we don't know how they were tested they might have been tested on the pcr machines where the cycle thresholds were high the machine was picking up low levels of virus that the

individuals were harboring that might not have made them very transmissible, contagious but was enough to register a positive test. public health authorities need to investigate this. they also need to figure out what the strain was that they were infected with and whether or not it was a more transmissible strain the bottom line piece of good news is 7 of the 8 didn't become symptomatic. they were picked up because they tested the entire clubhouse when they identified one symptomatic case, they must have tested everyone and picked up seven asymptomatic infections. >> let me just ask though, there was the cdc said i think as of april 15th there had been something like 5,300 break through cases of covid, people who had been already vaccinated out of 77 million americans that had been vaccinated. do you think this is a case where that's a true reflection of the numbers or do you think there are a lot more people who can get infected, have an asymptomatic infection and they're not being tested like

the yankees are. >> it's probably not the case that there's a whole lot of asymptomatic infections happening as a consequence of people who have been vaccinated. we certainly know there's not a lot of asymptomatic infections among people who have been vaccinated also, we need to remember even if you've been vaccinated, there's pretty good evidence that you're less contagious, less likely to transmit the infection. we have studies in nonhuman primates that are less effective. good models to study this phenomenon the most objective data we have around the risk that you face is the cdc data looked at hospitalizations it found 800 million hospitalizations around 90 million people who have been vaccinated where people were symptomatic -- they were infected and they were hospitalized and diagnosed with coronavirus infection when they were hospitalized. 1/3 of them were picked up incidentally. >> scott, real quick

bill mahr overnight has an asymptomatic case and another break through case my question is, is this science? meaning taking off the mask, the cdc's decision based in science or is it based in behavioral science? which is to say the issue you talked about, trying to provide a better incentive to get closer to herd immunity so more people take the vaccine and say there's incentive to do so and wearing a mask was not incentive enough? >> look, i think there's some element of both of those things. the bottom line is the vaccines are very protective. they help you from having severe outcomes they have asymptomatic and prevalence is declining. the worst you can take about the action is maybe they could have waited another week. a lot of people are saying they should have done this a week ago as well. that's the challenge of governing. the cdc had to draw a line in the sand inevitably we were going to be

relaxing these mask guidelines at some point over the month of may. the percent of the population that's still vulnerable to covid, meaning they face a significant risk of bad outcome from covid has declined substantially because we vaccinate the most vulnerable americans. at some point we have to move past coronavirus and start living normally again and, you know, we're at that point right now. right at the cusp of being able to take masks off and start re-engaging in normal activities. >> from your lips, scott thank you. have a great weekend and we will see you next week. >> thanks a lot. >> thank you rick santelli is standing by at the cme breaking economic data rick, take it away >> yes you know, obviously post covid these numbers come out in spotty sorts of fashion retail sales for the month of april headline number expected to be up 1% is unchanged but it shouldn't be shocking it shouldn't be shocking that in the rear-view mirror we had 9.8 slightly revised to 9.7. whether you're looking at march,

which i just referenced, or january which was 7.6, it correlates with when the government sent out the stimulus checks and direct payments that's when the retail sales jumped this should be expected. ex autos and gas is down .8. that follows down 8.2 -- i'm sorry, that follows up 8.2, which was also, of course, due to checks. if you look at the noncheck months like february it was down 3.3. that's all the data on all of the rest retail sales. let's go to import/export prices it suffers from the same issues that inflation does. that if you look atyear over year, so in march of 2020, april, may, june, july you had real extreme things going on in the economy. so the rate of change of anything month over month beyond march and april and june of 2020, we're well past that so as you look at import price month over month, up .7. if you look at ex-petroleum,

up .7. when you start looking at year over year, all of a sudden it's up 10.6. you're comping to big, big, big negative numbers export dynamic, up 14.4. month over month up only as expected, .8 retail sales, ex-autos is out, that's .8. here's the one i was waiting for. the control group. this gets plugged in other data points higher up the food chain. that control number is down 1.5. down 1.5 that also is to be expected and do emember, ultimately we're going to start to smooth these numbers out a bit because the service sector numbers are coming back online with a vengeance. andrew, back to you. >> thank you have a great weekend steve liesman joins us with his take on all of this. steve? >> reporter: good morning, andrew yeah this is an interesting number. kind of all over the place a

little bit motor vehicles and parts up 2.9% electronics and appliance stores up 1.2 health and personal care up positively the negatives,starting with gasoline station sales you know that's not going to be around for long. down 1 clothing accessories down 5.1. not sure why in sporting goods i think the story here is pretty simple we had a huge surge in march those gains didn't continue into april but we didn't have to do much from a gdp standpoint t keep it high because you get up to the level and you want to stay at the level. rick's right, you have a slight decline. that number minus 1.5 which is the control group, that feeds in the gdp. a little bit less. a little bit lower the more important story here, guys, i'm going to talk about this more on monday, is this economy is about to change in a big way. you had almost all of the extra money that's been out there going into the goods sector. it's about to shift into the

service sector and only some of that shows up in something like retail sales for example, you have the food services, drinking places up 3%. there's a whole lot of stuff though i think goods -- retail sector is only about 30% of consumer spending and now you're going to shift to services. and it's going to be tough, joe, in order for the market to follow how consumers are spending because we don't really have very good measures on services you can imagine that people will be going out for hair cuts and doing stuff they didn't do before and not buying as much in the way of goods joe? >> well, some of us will be getting hair cuts, steve hey, becky -- thank you, steve i know, you -- i know, you still get them i like it better you know what i want you to do i've been asking you for a while, just go for it, man go for the entire badass look, liesman. i think that would work for you. 97%, becky that's the operative term. >> appreciate your advice, joe.

>> you don't do that i've asked you for years. >> don't we all. >> 97 -- >> thanks. coming up, work to school finance professor jeremy siegel tells us what lessons investors should take away from this wild week in the markets. air bnb and doordash, wells fargo, both of them an upgrade keeping the price at target. stay tuned, "squawk box" will be right back wita tt or h lileve3% left little less for the week

oh, i've traveled all over the country. talking about saving with geico. but that's the important bit, innit? showing up, saying “hello! fancy a nice chat?” then we talk like two old friends about sticky buns and all the savings you could get by bundling your home and car insurance. but here's the real secret. eye contact. you feel that? we just had a moment. [chuckles] who would've thought it? geico. save even more when you bundle home and car insurance.

california phones offers free specialized phones... like cordless phones. - ( phone ringing ) - big button, and volume-enhanced phones. get details on this state program. visit right now or call during business now california phones offers free devices

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. up next, another expert take on retail sales. this week's hot inflation data and what it all could mean for your portfolio we've got the charlton school's professor jeremy siegel. ay tedstun, you're watching "squawk box" and this is cnbc.

you need a financial plan that can help grow and protect your money. an annuity can help cover essential expenses in retirement. have the right financial professional show you how... this is what an annuity can do. (vo) while you may not be running an architectural firm, tending hives of honeybees, and mentoring a teenager — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you help others. so you can live your life. that's life well planned. 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, and help people stay safe and secure inside. our innovations keep foods and lifesaving medicines cold and fresh until they reach those who need them. at carrier, we create solutions to help you build a brighter future...

headline april retail sales coming in unchanged versus an expectation of a gain of .8 of 1% that data follows rising inflation from earlier in the week markets earlier. the dow and s&p currently on pace for their worst week since january. the nasdaq likely to see the first four week losing streak since the summer of 2019 joining us now, jeremy siegel, finance professor, university of pennsylvania's wharton school. jeremy, i with great interest read your pre-interview notes. i was wondering, is he going to say it is he going to say the fed has been too easy? is he going to say inflation is

definitely a problem is he going to say i've been a long-term bull and i finally have some questions. i'm not going to get any of that for you. jeremy, yesterday morning at some of the lows of the nasdaq, some really well-known investor, wouldn't let me say anything on the record, but said that a 23 handle on the qqq pe for next year is reasonable he said that right at the lows that that was not an unreasonable multiple for the nasdaq saying this selloff was basically viable i think you might agree. >> well, joe, on our program i've been very consistent since last summer. >> i know. >> the unprecedented monetary expansion, the unprecedented fiscal support, you know, i think excessive was first going to flow into the financial markets into the stock market and then once we reopen and we're right at that cusp, we

heard gottleib, it was going to explode into inflation i've been an inflation worrier, joe, for the last year almost. so, yeah i mean, the question -- and i -- i was the one that said that jay powell was the most dovish fed chairman that i've ever seen not acting against what is very obviously inflation and then we're going to have a lot more so that's going to be a problem down the road, but in the meantime, the money is still flowing in and i think stocks are still going to be going up >> it seems like a long -- you're right i mean, it's -- it's a blessing and a curse. long term you keep printing like this and you think it's go the to be a come uppance, in the meantime, you're printing and it's going somewhere it's very weird. seems like a blessing and a curse. i feel like -- remember chuck prince said i'm going to keep

dancing while the music is still playing. someone can flip that off in a second where it doesn't work that way slowly the volume goes down and it finally turns off. >> well, the money supply since the beginning of the pandemic, so a little over a year, has gone up almost 30% now that money is not going to disappear. that money's going to find its way into spending and higher prices now not all of it is going to go we're not going to have 30% inflation, but i predicted here that over the next two, three years we could easily have 20% inflation with this increase in the money supply stocks are real assets they're -- we call them financial assets they're traded on exchanges but the basic value, the cash flows come from capital. they come from intellectual property they come from trademarks. those are real assets. so the money is going to flow

there. of course, real estate, inflation hedges and then everything is going to go up 20%. that money is not disappearing so that's what we're going to be looking forward to, i think, over the next year and then the fed is finally going to be forced to say, yeah, i've got to stop this and, yeah, then there's going to be a bump in the road >> another tick. so the market is a buy in 2021 with another 10 to 20% to go in the lower -- with not much else, not much else. >> yeah. you don't want to go into bonds or cash assets they're the worst. >> dividends will be -- dividends will be in vogue too people will strive for dividends because there will be some inflation and that helps with that >> yeah. that's the only way you can get protected. we all know on treasuries we're going to get negative real

returns. that's already locked in tips today, minus 1% that's not something very attractive when the history is that stocks more than compensate for inflation and there's a lot of dividend paying stocks 2, 3, 4, 5%. why would you go fixed income? the gap is huge and that's when i think they're going to need to drive the money into the market despite the fears that will be realized if the fed will tighten in the future. >> maybe chase just not right now. i can't believe that everybody's just saying just keep partying partying while the punch bowl is flowing. >> it's flowing. >> i know, but doesn't -- sooner or later since the market has a discounting mechanism, why won't it know when it's time to -- you know, to start consolidating before any of us realize -- like you or any of us realize that it's time? >> well, you know, it will

there will be a bear market, which is 20% in the next couple years, but that doesn't mean you get out now because it could be out 20%, ford's down 20. you know, yeah, listen, stocks are going to be volatile they over shoot and the push is eventually going to drive them too high, but at this particular point with this money that's been created, i still think it's flowing into the stock market. >> all right jeremy siegel, wharton school finance professor extraordinaire worried about inflation. you recommend gold or crypto >> well, crypto is the millennial's gold. i'm more old-fashioned and did well at the beginning of this but has lagged since then. i still think it could do well over the next 12 -- >> i'm sorry, you still think

what's going to do well? >> gold could come back. i think crypto has regulatory risks. you guys have talked about it earlier in the show. and gold does not have those risks. land is good, too. property is good housing. i mean, i wouldn't go -- i wouldn't go into commercial real estate but we know it's happening outside of bad area, real estate area real assets are going to be your hedge against this excessive monetary expansion. >> would i describe your views correctly by saying the inflation spike we're seeing right now is transitory, it's not the permanent spike we're going to see from all the money printing, but that is something to be concerned with long term but near term -- >> we're at the beginning of it. we've still got another i think 10, 15% over 2, 3 years. then we're going to go back to

the 2 to 3 which the fed wants we're going way over and for a long time. >> all right >> now finally, are you -- will there be in-person classes for you? i hear it's -- >> yes yes. >> only 30 persons or less?yes >> 30 persons or less. that's not great >> you know, we're trying to decide you know, as a requirement for vaccinations of the students, and then, so i think especially with the cdc development yesterday, yeah, i think we'll be back to quote normal september. >> gottlieb said people are moving too slow. open it up people need go to college. you want to ruin everyone's college career the whole college experience come on, jeremy. >> i'm for it. >> okay, good. jeremy siegel, thank you wharton, penn is what we're talking about.

>> okay. >> let's get over to cnbc headquarters jim cramer joins us now. jim, i'm cures what you thought what jeremy just said. what his expectations are. >> i think one of the key things he said that i've not heard is property not commercial but he wants property which property is the only thing that really held up during the great hyper inflation that we had in zimbabwe, mansions and property that took me by surprise because he is very concerned >> if not property how about disney or airbnb >> both had great quarters i didn't decide to go into disney plus. airbnb and other than international was a good quarter. international, obviously, it's not together yet but you got to buy it ahead of when the world opens i would not sell that stock.

it's come down a lot the star of the show is coin base coin base is great >> you like coin base at this price? >> very much people want to play these things you get them all you get a theory that's what they are going for and they are the only ones that has lower interest rates because they don't have to reach to get the money. i bet they become the depacto partner of banks, mastercards, bank of america. >> that's the thing i can't figure out, jim. the winning story is that they become centralized, sort of repository that works with everybody. everybody else uses them but what i don't understand why we don't think that some of the big banks eventually say, or even a paypal says we're doing this >> okay. >> we're dealing with e*trade and td ameritrade, all of them become like that and then it's a

different business what's the risk? >> if you're a coinbase shareholder, you have to hope dan shulman isn't building up tremendous cloud products. that's why i think the other guys, the major banks overall will have to partner yes. the risk is square the risk is paypal that they go up against it and they are both capable of doing it and they are both great companies they are viewed as being woodstock, and woodstock is up today but i don't trust woodstock. >> okay. do you trust woodstock >> i trust you, jim. >> okay. then we're on the same page. >> by the way, what are you doing on masks >> on masks? >> masks >> masks i decided not to wear one this morning to the office and they told me right at the door no you

have to put it on. i took it off. i listen to the cdc but gofrp murphy is not ready. but it's good enough for me. i'm making a statement, no mask. i'm vaccinated and i'm not wearing a mask >> i heard about your story with the security guard that's why i wanted to tee that up. >> really? >> we'll see you in a couple of minutes. >> okay. coming up some top stocks to watch as we count down to friday morning's opening bell on wall street continue watching "squawk box" on cnbc. wait, this isn't your bed... how'd you get here? ah yes... groceries. earn points now to use on travel later. one of the many things you could expect when you're with amex.

that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. if i could, i'd ten-x everything. like a coffee run... don't just sell it. ten-x it.

it is just a little more than half hour to go until the opening bell on weekend. about 1% until our work week is done dominic chu is here with a look at the pre-"market movers" >> the whistle will blow for you folks earlier than for me. i'm just starting my day take a look at the pull back we're watching from commodities. that will show you a little bit about maybe the trading dynamic that we're seeing today. what you are seeing are things like copper, lumber and oil prices retreating from the highs we've seen over the last few weeks. copper prices are at the lowest levels in about a week and a

half or so 4.70 or so you can see in context over the last year a doubling in price for the most part for copper prices a pull back there. also watching what's happening with lumber. the most actively traded contract is the july one we're showing you may. july is the most active traded one. over the last year a surge in lumber prices and then we'll show you the most perhaps heavily interested one that we've seen for a lot of things is the gasoline price over the course of the last several months or year this future is up 130% over the last year. again, pulling off the highs we've seen, the colonial pipeline being resolved with the hack interesting notion here. for many of these commodities like lumber you're seeing future prices down the line elsewhere in the year that are lower than they are right now, indicating that perhaps you could see a

pull back in prices later on down the line as supply chain issue, covid restriction, everything else go away. commodities are something to watch in the trade heading to the opening bell back over to you guys. >> dom, thanks don't forget the new pga schedule too, dude that's a big step up for the pga. makes it much more interesting, i think. >> i'm a huge fan of kiowa a great place. >> i need wind it's just too easy when i'm moving the ball left or right and having no idea which way it will go right or left sometimes the wind helps >> final check on the markets. we do have the dow indicated, trying to get back to some of what we lost this week got to hand it to the nasdaq that was a pretty good stand that it made yesterday, and it

didn't happen after arc, people said that had to recover before the nasdaq recovered we never know. we're mid-term, in terms of where we'll be by the end of the year but that was a pretty good stand this week i think you would say. less than what percent now, becky? >> got to go the >> bye-bye >> got to go >> make sure you join us tomorrow, next week. >> tomorrow? good friday morning. welcome to "squawk on the street". i'm quintanilla with jim cramer and david faber. copper, lumber finally show some signs of cooling off we're watching disney. airbnb door dash. we begin with rally on, masks off. wall street looking to claw back the week's losses as the