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 cdc loosen mask restrictions

>> shares of disney are lower. the company did miss on streaming subscribers, parks revenue still taking a hit from the covid virus. and the crypto roller coaster rolls on elon musk says he strongly believes in crypto and working to improve efficiency. guys, let's start with, i guess take your pick, jim. so much to unpack on disney. as we mentioned the real estate sales miss, lumber down four days, copper worst week since early april. is this the pause that refreshes? >> yes the commodities are peaking. iron collapsed last night. chinese cutting back copper i think is just a typical blow off the top lumber manipulated heavily but now can go down, the perhaps really, maybe even $600 in a heart beat i need to see the grains come down a lot of people feel they are

peaking. there's a piece that says they are not. i'll go against that and say the grains are peaking what matters is how much they go down if it's a blow off and it goes down big then you know who will look like a brilliant man -- >> j. powell >> yeah. >> but psychology figures prominently in inflation and when i do talk to executives on front line in terms of making things that require metals, plastics and freight and labor, they are going for higher prices >> i won't disagree. still need semiconductors, freight is just a built in inflationary problem the complexes because of etfs tend to trade together even though they shouldn't, they do etfs are so powerful >> i do think it's right that

they trade together? >> do you think this etf position is correct, we see all these different tranches of etfs and then we have woodstock woodstock is up today. >> i think the movement in arc yesterday was interesting. it was down even though the broader market was up. >> you know there's a break woodstock. >> i do know that. in fact, i had a couple of conversations about that this morning. to be fair, when it comes to the arc funds, it's more being used to a certain extent as a hedge i'm buying microsoft, short arc because nothing is correlating from what i understand properly. >> right plus it's more than ten time sales versus 33 -- showing a woodstock video again. >> why wouldn't you? but, you know, jim, there are those buying puts on a rxarkk

are they trying to get redemption >> there is no redemption. >> 64 million flowed out yesterday. so that doesn't seem to be the game that works. arkk is fascinating and it was down yesterday tesla of not up. one of the largest holdings. she's been selling stuff >> cash equivalence. one of the things you can watch, the call at the bottom i want to tell our viewers you can see people want the arkk funds go up they are saying come after us. these incredible death matches between the woodstock and the people who are hedge funds hedge funds versus people. i'm known as being some sort of hedge fund troll i've been at this thing for 16

years. do i ever take a hedge fund side >> jim, yeah, three months ago the average component in ark was up 25 for the year now the average component is down 19 for the year so it's been quite a decline we do have a couple of -- not necessarily they are ark components but a couple of upgrades of high growth. and snow to buy, jim, so they are definitely seeing value as those valuations have come in. >> goldman snowflake was very cogent because it is the cloud data analytical stock. so i think that's a good stock here it's come down quite a bit i know that it's an elusive stock. a lot of people bought it. a lot of people bought snowflake saying when you ask them why

they were buying it. what are you, a mind reader? >> yes, i am i have been sitting here listening to you for a very long time >> aren't you tired of it? >> never >> thank you how much do you really hate david faber? i said i don't hate -- carl i want to agree with you why because i sit far apart. now because there's social distance, david look out cdc says i can sit right next to you but carl i think this whole, today is a day where we take a break from the revulsion of high multiple stocks. just watch airbnb. it was a good quarter. >> yep you talked to them last night. do we have the stock ready

this is the cfo talking about the volatility in crypto and arguing it's here to stay. you want to listen to it now >> love to >> we'll get to it in a minute, jim. crypto is volatile and you can see we react to a tweet. it will react to headlines and as they said to investors it's a long term investment >> what matters to me is a lot of our viewers are trying to figure out which one of these they should be in. that's why i like coinbase there's a scarcity value coinbase, like a lot of these companies pay 8, 9 i want, they pay 6. meaning they are more stable and don't have to reach. the other thing i like about them is i think because of their cloud technology and they have substantial -- david you'll love this -- i think people are going to partner with them not destroy them i think you're going to get a paypal-like situation where dan

shulman was able to convince everyone one day, here's a bold prediction, carl one day, either brian moynihan or jamie dimon will do a deal with coinbase. >> that's very bold. >> what do you think, carl >> guys, as far as the mask recommendations go, and the disney quarter, jim, i wonder how much you think this is tied into the future prospects for the company. i know this keeps a hold because they are worried that theme parks, cruises, even cinema attendance may not get back to pre-covid levels this year >> that's as low as you can be they said that are they a bunch of liars? come on. i think disanything, suddenly all we care about disney is disney plus. that's a very big mistake. this is a very good company. david, you are giving me that

smile which says jim you should read something i read christine mccarthy who is the best cfo in america. made me feel if you don't buy this stock you're a fool >> really. >> yes >> okay. why is that? >> everything else is finally working. so does disney plus still determine the situation? >> at the same time you have revenues down 13%, 14% year-over-year and the stock up dramatically, you can see flight not year-to-date >> stocks anticipate this. >> they do a lot of move up was based on the incredible growth of what you're looking at right there. >> now you got other engines >> you do. you got movie theaters opened. you don't have to wear a mask going to the movies if they are vaccinated and they are going to take most of their movies back to the movie theater you can see them on disney plus

for a premium, significant premium and the parks are going to be fully opened and you're not even going to have to wear a mask which on the call was very happy about. >> if you remember the previous call, might not be until 2022, not that he's a member of the cdc. i thought the directorship of the cdc could do better. >> for better or worse investors are very much focused on direct to the consumer. >> until when? until ufc has a big ufc match? come on, david >> i don't know. they reaffirmed their 2024 guidance on subscription trends. what are they saying 230 to 260 million subscribers >> there you go. >> what an incredible -- >> you think it's -- >> from zero to that >> i thought what happened he yesterday people said, you know what netflix didn't do number disney didn't do the number. people are going outside they are not watching movies any more

>> they are turning it off >> they watched everything >> they watched it all >> really? >> no. >> how about amazon? >> i've never watched bosch in my life. >> but, carl, i think the idea that people stopped watching movies and stopped playing video games, no that's not true. it's fun to be at home watching something if you have a big screen tv. you made the investment. >> i've been watching a lot of those disney plus things they are great >> you wait what 25 days they talked about it >> it does look like -- it looks like 45 is going to be the magic number at least for the summerall though jungle cruise, jim, will be on streaming the day of the release the disney model is the optionality between movie attendance and streaming >> i think of jumbo cruise i

think of one thing i think of someone who was in the jungle, in the real one, carl >> a long time ago a long time ago i was a skipper on jumbo cruise. it has nothing to do with the movie. >> yo-ho, pirate for me. >> whatever he has to do on that jungle cruise. >> what i'm lucky is it was pre-internet and very few photographs that i have. i'm not sharing. i'm not sharing. we'll take a break guys and get this friday opening bell going in about 15 minutes. don't go anywhere. new projects means new project ma you need . i need indeed. indeed you do.

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>>ss about morning let's get to rick santelli >> industrial production, by the way, one of the oldest numbers we have in industrial production it goes back to 1919 the number we're expecting is up .9 for april, up .7. the reason i brought that up because the all time low for over 100 years was exactly a year ago, april 2020 at minus 12.68. this number is at least

positive it's the third positive number, fehb was at minus 2.62 now with regard to utilize consolidation rates. 74.9, 74.9 we continue to make progress but we did have a stronger number in january so we want to look at some of these manufacturing numbers because they might not be able to run at capacity because of shortages let's quickly get to the charts. look what happened this morning on export prices it explains why all the year-over-year data points are hard to interpret here's a two year chart. see how weak these numbers are one year ago if you look at one week of tens and 30s both yields up we're up even though down three on the week and if you look at year-to-date this is such an interesting chart because the high watermark was right at the

end of march at 174 yield close. highest post-covid look how the consolidation since then mostly sideways with a little bit of a spike this week many will be watching one and three quarters level and finally finishing it up with europe one of the other reasons interest rates have been firm europe this week up nine basis points, closed at minus 12 a two year high yield. back to you. have a good weekend. >> all right rick we'll see you later in the meantime keep your eye on gas. surging in the pre-market up between 7% and 9%. revenue is ahead food delivery service raises their annual guide jim i think i see it went up at wells as they go to buy 200. >> i think that people think that there's nothing proprietary. they are ahead of the game p.m.

signing up merchants every where. they are offering a three tier deal in terms of whether you want to go with them they can give you a deal for smaller restaurant like the ones i have that frankly no longer hurt your p and l. i said earlier it could but this new program is positive. positive for a lot of small businesses doing more than just restaurants. i think tony chu, his mom ran a restaurant >> you said -- >> new plan. they are offering a new plan >> new plan. new plan works i've done the math for it. >> something, for example at your restaurants >> yes we've become a client. >> as opposed to losing money. >> but they gave you prices and i don't have any special deal. they gave the the new price list that allows you to make decent money on delivery and that's

tony chu realizing we're going to go out of business. i thought it was very positive carl, this man is a forward thinking man >> as he told you last night, jim brks some of those new categories here's what he said the effects of the pandemic were a lot more muted than we execute and wherp forecasting for the end of last year and that's why some of the growth you saw in the quarter, you know, we really had to make sure we had enough drivers on the road to sustain that growth. but we saw growth really across the board driven firstly by record engagement from our consumers but also by our growth into new categories. >> kind of remindreminds me doms told us. diners and grocery store shoppers are not going back to those pre-covid habits >> no they are not that's true. the biggest problem that door

dash is having enough dashers. they need more dashers because restaurants and everybody i think wants to -- all sorts of different companies. just partnered with rite aid need dashers people don't want to go out as much as we thought they want to go out but not as much as they thought they rediscovered home and there's a lot of things at home including disney plus that makes you want to stay-at-home disney plus. >> i'm going out at every opportunity. >> you're finally going out. >> great let's go to burlington >> burlington. >> burlington. i think kohl's, tj maxx, costco. >> carl, the lines are almost out the door for t-shirts that they are basically giving away >> guys, when we come back we'll get to some of the names we've not gotten to including airbnb

and tesla. futures are green on this friday

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statements and files 2020. sec, okay not approved yet but i think it will be important thing here, david is that a lot of people feel this company is no longer, let's say investable because they did equity offerings, they did sales and we had this happen my investigation proves that they changed their mind saying that they agreed with how things were accounted for on some of these contracts they have. then they took it back kmg is very powerful they crushed them. >> right >> there's no cash >> it's not a cash issue >> that to me -- >> how you account for thing >> the sec -- >> right >> there was no cash out the pay i look at it and people are excited about it >> down from the highs

the stock is sill up over 500% over the last year >> perfect i don't think it's a woodstock the. >> no, i don't believe so. >> we have to stick with this. cancer on the cigarette thing. until tomorrow the money will flow back in on monday these are death matches. amc, gamestop, woodstock there you go >> thank you back to you. got an opening bell. also don't forget we have an exclusive with exxonmobil's chairman, darren woods >> we do >> we do he's coming in we got an opening llbe coming up next

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>> states now need to interpret the guidance from cdc. businesses need to interpret their state regulations their state mandates i suspect a lot of businesses, a lot of retail location will keep their employees in masks for a

period of time i suspect some stores, some locations may continue to require masks to enter but i think we're at the period now where over the next two weeks these will be quickly washed away these ordinances will be quickly relaxed across the country as we get into june masks will no longer need to be required. risk to the average individual will be low as well. dr. gottlieb earlier this morning talking about enforcing these new mask guidelines. his general view is you'll have some people not wear a mask who were not vaccinated but he thinks in the long term they will see more value in getting vaccinated than not. >> i hope so we got to reward those who comply and, david, you have to punish those who don't >> how do we do that by making them wear maverick >> yes >> how will you know univaced person -- >> i think that there should be

vaccine passports but i'm also -- i have a hard-line on this because i want people to get vaccinated and i want this economy wide-open. >> it needs be a key question. you get different reads from corporate america on how far they can go in getting, mandating vaccinations for their employees. >> anything that makes this economy hum, more jobs is a win and vaccination does it. >> magna >> there's the opening bell at the new york stock exchange. jim it does appear we're inching that direction i noticed delta airlines this morning, cnn reports new hires will be required to have been vaccinated the cast of "hamilton" said the same thing baby steps, i suppose. >> obviously we're in a country where privacy is important, people always say hippa you can't say this stuff because of hippa. i'm not saying that anybody

should be denied admission to places but i think that your reward, carl, for getting vaccinated should be no masks. that's all i'm saying. that should be your reward and that's a very compelling reason i don't want to wear one >> why you moved to this because it may encourage people who are not vaccinated to do that. a reward, as you say, for getting a vaccine. do things that you otherwise might not be able to do. >> david, you wear a mask when you were outside in new york city >> i do not. no chance you'll get the virus in passing by anybody and frankly there never was. certainly not now. many people still do, jim. many people still do interesting behaviors people have taken on over the course of a year sometimes they can be hard to shed we'll see. guys i want to get to a story we haven't hit yet which is one i've been following the battle for kansas city southern, large

railroad, of course, that was in a deal to be acquired by canadian pacific but is now entering a deal to be acquired by canadian national that's the news we can share with you this morning pap revised proposal from canadian national even beyond what they had already bid is enough to, for the board of ksu to say this is superior and so canadian pacific you are now on the clock. you have five business days during this so-called math period to come up with something that essentially does that or else we will sign up the deal with canadian national we're talking next thursday. and in their new deal or in this deal that is superior and likely to be signed up, i'll get to that in a moment, they do top up the ratio to make sure it actually equals the 325 they originally said. most of this is cash $200 in cash

faye break up fee that ksu would owe to cp $700 million and institute a billion drar reverse break fee if they don't get voting trust approval. i talked about that and fact that canadian pacific got it and the decision by the stb would indicate based on the specific things that we're looking at, that cm would get the voting trust but haven't yet. ks wants to sign up this deal. canadian national believes they will as well so what the canadian pacific going to do over these next five days will they choose to try to match. they need a shareholder vote their deal compromises a great more stroke. there's a way to shore that up to change the composition. sure all of that is possible although it does not appear likely at least given the conversations i've had that's not to pre-judge the situation. they are just starting to talk

with the board this morning. they will continue those conversations into next week but, jim, if you are canadian pacific, you really have been taking shots at the ability of canadian national to get this voting trust that's what protects shareholders and they may just keep doing that why not just bother with the match period and wait and see. if you are confident they won't get the voting trust then you're in a great position because then ksu will not be able to move forward with their deebl acquired by cn if they do get the voting trust, you get the $700 million and can you move on and fight another day. >> that's pretty good shape. >> possibly. canadian pacific really wanted this deal. >> this is the premier railroad that is going to be for sale for the next century >> that's the thing. how many more deals could the there possibly be. although cp says if you don't

let us buy them we need to sell ourselves. there's that question. will that deal be allowed. yeah >> that's like posstash >> unlikely they choose to match. need the shareholder vote. they can't get their economically but we'll keep a close eye on this. one of the key properties in rails and it is for sale and not likely to see another one like this for some time >> wow huge implications for supply chains, guys and the transports, obviously as i'm looking at some of the sectors. everything is green, jim, led by energy and former technology the chip shortage has a couple of bullet points this morning. one is this alex partner survey that says it will cost automakers $1 in billion in revenue.

>> if you want that. i don't buy that i think we're much further along in solving that chip shortage. the problem with the automakers is the quantity. the racing for plastic that's what will cost a couple billion. >> what have you heard at all about this drought in taiwan the impact it may have on chip production >> just the usual dire forecast is all i've heard. >> water is important. >> yes >> there's less of it around to be used because of the drought >> yes a longer term problem. but there are a lot of companies that can make he these chips these are not difficult chips to make carl, i think the chip shortage is going to be solved within, i'd say maybe four, five months. the commodities going up the steel.

steel is not reversing itself. the chip shortage that's manmade. the problem with steel is that we don't have -- we stopped making it. that's it. we just need it but bethlehem steel plant is in rh >> restoration hardware. every so often i get lucky >> great furniture store >> form of a question, please. >> that's the correct response i'm the one that gives the clues, not you >> i was looking at the west coast. >> guys save some room for darren woods from exxonmobil on the other side you don't want to go anywhere.

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exxonmobil investor meeting is may 26th. the company facing increasing activist pressure. of course engine one the activist in question supports pennsylvania funds seeking four board seats. joining us now is darren woods chairman and ceo of exxonmobil darren, great to have you back i do want to start off on what's less than two weeks away now that shareholder vote on your board nominees because this morning we got a report from iss, the influential proxy advisory firms and they are in support of three of the four ddi dicy -- dissidents they say in their conclusion that additional board change is fleed provide shareholder with sufficient confidence in the

sustainability of exxon's business and one that should take precedence over an assessment of the general sustainability of the industry give me your response to what we heard this morning from iss. >> good morning, david good be with you obviously, we disagree with that recommendation we got one of the strongest boards in corporate america, one that we have been refreshing fairly regularly since i came in, in 2017. we brought on six new board members. that's half the board. we have board members that have extensive experience running global complex businesses, capital intensive businesses, businesses that are grounded in science and technology a lot of experience in managing companies, large companies through significant transitions, shareholder perspective, industry perspective capital allocation perspective so we feel very strongly that we have the board in place to help manage this company not only

drive success in today' environment but position the company for longer term success as the industry transitions. i think we're seeing that actually with the results in the first quarter as we manage through the pandemic perioded. and we see the results of the work we did last year and the work we've been engaged in since 2017 in reshaping the business, investing in high return projects driving simply citi in our business >> we had that conversation when you joined us not that long ago. i want to talk more about that but on this specific fight because that's kind of what is it the when they say exxonmobil, to your point or at least the

experience of the board for years have filled this board with former ceos without any energy experience which is behind some of this iss recommendation how do you respond to that >> i think the challenge in this space is understanding the technology that's going to be required to drive the industry forward and to support society's ambition to transition the energy system to a less carbon intensive energy system. so the there's a lot of work in terms of thinking about the company, the advantages the company has, the strengths we have and how we apply to successfully transition the company as society moves to lower carbon future. frankly the board that we have today has a good understanding of that, understands the complexity associated with moving a businesslike ourselves through that transition. as i said if you look at the plans we've laid out, the technology that we've been investing in, to address the sectors in society that are

hardened to carbonize we have a very good plan, very good technology pipeline to address not only the challenges today but the challenges we see coming forward in the future. >> let's get to that you know the last time you joined us of course we spent a decent amount of time about carbon caps. had that discussion with your board member not long ago as well but, specific, darren, to some of the criticisms still, for example, engine one says even by their own limited standards you've gone backwards when it comes to upstream emission intensity. they say mob has gone backwards and does worse in 2025 than 2010, upstremme emission intensity has worsened over the last decade increasing 26% put that in perspective for people so that we can understand at least your perspective on that statistic. >> we've been very supportive of the efforts globally and within the industry to reduce our carbon intensity and carbon

emissions. if you look at the progress the company has made since the paris agreement has come out which we supported at the time it came out, been very vocal in our support we reduced emissions through 2020 from 2016 by 11%. we have plans in place today that drive emissions down even further and frankly put us on the path consistent with the paris ambitions and to a lesser degree seen scenarios. we've done a lot of to work reduce emissions more importantly if you look at what's required for society to achieve the paris ambitions there's a number of sectors in the economy, critical to the economy and critical to people's lifestyles that are going to be hard to decarbonize that today don't have solutions the we have been working for decades on technologies and technologies required to address those carbonized sectors to help society achieve that lower carbon vision. so i would tell you that work

that we have been doing is starting to pay off. you know we've recently announced a very large opportunity in houston that can make a significant contribution to the biden administration's recent announcements of reducing significant co-2 emissions, making significant contribution to houston reaching net zero we've been doing the work within our own operations to reduce emissions and doing the work required by society to help them educe their emissions. >> darren, i want to talk about energy for a second. good morning you have $64 price oil i think you guys generally have been cutting back on your drilling plans dude you can make a fortune here 60 bucks come on. let's bring it on. >> we've made very good progress in what we've been doing actually we are at a fairly

steady stake with what we're doing. last year with the pandemic, the drop in prices and revenue we had to pull back across the board a number of our investments. but we maintained a level of spending and investment to make sure we're continuing to progress, the technology advances that we feel we can achieve in that to lower the cost and become more productive. we're seeing results of that in fact i shared that. great success at improving the production and our plants today grow our production. you know one of our priorities is rebuilding the balance sheet which we leaned on pretty heavily last year. right now we got a good pace of production, making good progress on that operation and as we continue down that path and generate more cash like we did in the first quarter we'll use to it pay down the debt. make sure the company is in a very good position to face whatever the future holds and what ever the commodity cycle does to us >> when he a similar

conversation yesterday with pioneer. darren back to carbon capture. it's an important component at least what people want to hear, certainly those who are not exxonmobil shareholders as of yet and the criticism you receive from engine one. again i would love to you respond. when they say you trumpeted carbon caps, or exchanged little and your projects are incredibly costly and prone to failure and haefrl dependent on government subsidies and therefore unlikely to enable you to avoid transforming your business model, even the most advanced carbon capture is making it unable for you to do it in the long term. again, your response he's choosing not to respond empty chair. >> we lost the connection.

>> great question. >> $100 billion project. that's a lot of money. >> right right. >> even for this administration that's throwing around a trillion here, a trillion there. >> are we going to be able to re-establish contact with to dot >> meanwhile, some of the people i would discard them as anti-energy that people on -- >> who were the nominees >> yeah. >> given they already added two members to the board as we know, mike and jeff as a result of some of the actions undertaken by de shaw, this hadn't gotten as much attention, but the move this morning could perhaps put more attention on it >> the people, they would be against carbon this is exxon. >> let's take a quick break and see if we can reestablish a connection with darren woods we'll be right back. the visionary lexus nx. lease the 2021 nx 300 for $349 a month for 36 months.

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welcome back we've reestablished contact with darren woods although, via telephone. darren, we look forward to the day when you'll join us in person we won't have to deal with any potential issues >> i look forward to that as well >> i want to finish up i asked about the criticism and

carbon capture and your real efforts there and whether or not what your critics would say the most highly carbon capture unlikely to transform your business model over the long term how do you respond >> i would say that's one of the unfortunate things with our discussions with engine one and their refusal to sign an nda and allow us to take some time taking us through plans and technologies we're working on. frankly, any credible independent body will tell you that carbon capture storage is a critical element for the world to achieve the paris ambitions, the iea, the un, ipcc, the intergovernment panel on climate change all recognizing the importance of carbon capture and what it plays with respect to reducing emissions in society we have decades of experience operating with the carbon capture. we launched a venture to look at one new carbon capture

technologies we're developing. two to look for opportunities around the world where we can use existing technology to reduce carbon capture storage, and that's behind the proposal that we have begun discussing with the administration in houston. i would tell you the cost of that project is we can reduce significant amount of co 2 on the order of 100 million tons by 2040 we can protect jobs and industries that are currently making products and helping support people's livelihoods and modern life, and we can create new jobs, build infrastructure and do that at a cost anywhere from a half to a quarter of what the government is currently spending on carbon reduction so this is an attractive opportunity set, and it's an important technology and one that we have a lot of experience in >> it's a conversation we're going to continue to have. you're saying basically engine one, you would have them come in and they weren't willing to do

so in terms of signing nondisclosure agreements >> we offered the same deal. we spent time talking about the plan they're supportive of the direction and the basis on which the board and majority have develop -- management have engine number one was instead focussed on us exiting the business we're currently in. undermining the plans we have and the strength of those plans and frankly, putting the company's future and the dividend in jeopardy >> and finally, darren, because we have you and it's been the big story this week. give me your take on the colonial pipeline ransom ware attack, how you think about it and whether or not it concerns you in some way for the future >> well, you know, cyber security as a topic in itself is a real important one, and one that the industry is very focussed on, and as a company we've been focussed on frankly, it requires the right

kind of architecture and architecture configuration it requires the right kind of software systems, the right protocol to manage that architecture and the software, and obviously the people and the right behavior around the people using those systems. and so it's a constant challenge. one that we have worked as a company fairly aggressively and it's -- continue to evolve the work we're doing this. i would tell you i think the industry as a whole is focussed on this topic and recognizes the threat it represents and frankly, the industry association, the american petroleum institute has a standard that we've put in place to try to help companies in the industry manage cyber security they're in the process of updating that standard, and i think we'll learn more from this as the particulars of this incident come out, and improve the standards. >> darren, always appreciate it. sorry for the technological

glitch, but happy we could conclude the interview and look forward to seeing you again soon >> nice talking to you, david and jim. >> jim j we packed the hour. >> i can't believe it. engine one news, that they wouldn't take -- do the -- okay. we have on mad tonight, constellation brands and five9. one of the few that has held up. there are so many stocks down big in technology from the highs. have a great weekend >> jim, you too. we'll see you at 6:00. 1 % gains. back above 4150. don't go away.

welcome back to "squawk on the street." rick santelli here live breaking news our march read on business inventories expected up .3 it arrived exactly as expected up .3. of course, this follows at least up to this moment, a slightly -- a nonrevised up half of 1% let's get to the money ball number our may preliminary read on university of michigan sentiment. 82.8 big miss. we were looking for a number closer to 90 that's the weakest since february and if we look at the internals, if we look at current

conditions, current conditions are 90.8 also a miss. sequentially following a final read last month of 97.2. expectations a miss. 77.6 following a final previous month read at 82.7 now, there are lots of reasons to think that this is occurring but, of course, with vaccination getting out there and reopenings, hopefully this will turn around with the final read, but the inflation numbers are big. i have to go threes. one-year inflation at 4.6 k, yo have to go back to august of 2008 to find a bigger level of 4.8. that was one year. five to ten-year outlook on inflation is 3.1 to find a bigger number, you have to go to march of 2011. so just like cpi, consumer price index ppi, producer price index, the future outlook on inflation from university of michigan, also a bit hot hot hot carl, back to you. all right. rick, wow, the final data points of the week. good friday morning.

welcome to another hour of "squawk on the street. it looks like at the moment the market is going to look past the miss of michigan we're up better than 1% on the s&p. 1457 -- 4157 we're 30 minutes into the trading session. here are the big movers. we're starting with the drop in disney subscriber numbers for disney streaming service falling sort of wall street predictions more on the quarter in general in a second. but you can see the shares are down 4 % door dash surging despite reporting a wider than respected quarterly loss, blaming a shortage of delivery drivers revenue came in above forecasts. it tripled year on year as people continued to order out. you can see the shares up 14.5%. and finally, fiscal shares are all charged up after signing the deal with contract manufacturer fox con to co-develop electric vehicles with the first evs expected to roll out in 2023

stock is up almost 9%. it's down about 25% year to date david? >> thank you, morgan stocks are looking to continue what is a rebound, of course it started yesterday after what had been fairly large losses for the previous few days. joining us now is a jpmorgan asset management >> good morning. >> what do you make of this week how should we view it? the concerns about inflation the rotation we've seen dramatic as it's been out of some of the big very highly valued growth names into value will it continue >> yeah. david, good question this week's data is just a stark reminder that this recovery is going to be like nothing we've ever seen in our careers similar to the way the recession last year was like nothing we've ever seen. you're talking about a month over month cpi number earlier this week that was the highest in nearly 40 years that's really an eye opener. i think what rick went through on some of the longer-term inflation expectation numbers

are certainly going to catch the fed's eye. however, there's nothing that we've seen this month or this week that is getting us to change our view that investors should be overweight u.s. equities, and adding balance to a growth posture that worked for years that is not going to work. we expect this to continue through the end of the year. i think that some of the things that folks should be open to is getting away from the cap weighted index exposure. that's the largest and most popular companies into more equal-weighted index exposure where you want all 500 companies at the s&p i think value still makes a lot of sense as you can make the argument the u.s. consumer has never been as strong and rearing and ready to go as they are right now. that should help value in the u.s. as well as abroad and places like europe >> phil, we can go back so many years where there was hope for the value investors and then it was just dashed as they watched

growth severely outperform what in your mind is going to make it different this time? >> what's going to make it different this time is the fundamental backdrop we haven't seen anything like this since ronald reagan was president. and david, you can replace the value kind of head fake with europe as well it's the same thing. the people that talked about europe, it was like a blasphemous word to add balance to a portfolio what makes europe, we're going to pass the baton of the peak of the global recovery to europe in a couple months. so that's new. we really haven't been able to say that a lot we're also looking at blend rates almost getting back to positive i'll throw a party when german blend rates go positive. that's definitely new information as those rates will move higher and helping financials and then the european recovery fund which obviously is a symbolic kind of matching of fiscal union with the monetary

union is something we haven't seen before. that fundamental backdrop. the savings rate in the u.s. 15%. just put that into numbers, that's $6 trillion in the savings rate right? and that was about 900 billion precovid so this is -- these are all really important data points that are new to 2021 and it's very crowded to have stocks in your portfolio everyone is saying that. we've seen tremendous flows into equities the difference this year is going to be security selection, david, and that's where the kind of value balance comes in. >>. >> rick santelli said inflation data hot, hot, hot, and treasury measures climbed and since they've retreated. what's the bond market signaling and at what point does that actually shift and become a bigger story if we continue to get the hot hot hot numbers? >> yeah. morgan, that's the million dollar question here that's the tail risk to this

base case of recovery and reflation that i've been talking about. and also i read this morning that inflation has never been googled this much. so everybody is talking about inflation. our clients are asking about inflation. what the treasury market is saying, especially with the fact that it hasn't been able to break into new higher, a new higher range is that they're giving the fed the benefit of the doubt with the t word, transitory if you look at the month over month number that i mentioned was the highest in four years, mostly all of the myths from consensus was based on used car sales and car rentals. the fed is not going to hike rates based on used car sales and car rentals surging. they need to see a more inclusive labor market they were talking about it this morning. there's 8 to 10 million people unemployed since precovid. they want to see that improve before they believe we're moving from a transitory environment.

the bond market right now is giving the fed the benefit of the doubt on transitory and so is the stock market. if we're moving from a reflation regime to inflation, you wouldn't see the green on the screen the past couple days. the benefit of the doubt is certainly being given to the fed. let's see how long it lasts. you can't assign a zero probability to any of that in this recovery. this is nothing we've seen before that's the piece that bears watching the most. >> the t-word. thank you, and look forward to that party when the german bund yield goes positive. >> yes we'll count down the basis points. >> we'll do hats like we used to do for the dow >> take care guys, disney is the only dow component in the red on a pretty good tape. despite the better than expected earnings last night, a lot of focus on subs. julia borston has more on the quarter. >> good morning. well, bob chapek telling me

disney's growth picked up in the last month of the quarter stressing throughout the interview that streaming and going direct to consumer is disney's top priority. including with sports, announcing two new sports deal, extension of major league baseball rights through 2028 and eight-year deal with spanish football both feature streaming rights. >> we insisted in every deal that we've done, and as you mentioned, we've done quite a few in the last few months our flexibility to pivot to espn plus when we see fit in some cases to simulcast it's an extremely important component to us. we know the consumer is evolving and changing and that consumer is going to drive the rate of that evolution. and we want to be on the front end of that wave, actually, a little bit ahead of the consumers. >> chapek also reacting to the cdc news that masks will no longer be mandated for people who are vaccinated >> it's going to be a lot more

comfortable people this summer in orlando you can only imagine what it would be like in 95 degrees, and 95 % humidity wearing a mask so we're thrilled to be able to do that. i think it speaks to the ability for our guests now to come in more significant ways to our parks and right now as we speak, we're already increasing the capacities to our parks given the guidance that we've gotten >> chapek saying they're seeing strong parks demand back to 2019 levels in terms of those bookings you can find more from my interview with bob chapek on cnbc.com back over to you >> i urge everyone to go there julia, thank you zb we're going to unmask the mask mandate debate. frank has more on how other corporations are responding. frank? >> reporter: it's been more than a year since the cdc first advised all of us to wear a clath face covering. this new guidance from the cdc

comes as just about 59% of all american adults have had at least one shot and fingers crossed, hopefully we are inching toward that 70 to 80 % level where we would all get herd immunity. it also puts businesses in a difficult decision to decide going by what was announced and federal, state, and local regulations and guidelines that were already in place. a lot of companies have to make that decision. right now we're at a starbucks in the atlanta area. we're waiting to hear what this company plans to do. we know other companies like walmart, target, and wall greens, they're still reviewing the cdc dividelines. we've heard from one company that says they plan to relax the guidelines the wynn las vegas said they plan to communicate to guests if they are not required to wear a mask if they are fully vaccinated and required to wear a mask if they are not so businesses trying to figure this out still very important to remember when it comes to airports,

planes, health care settings and also public transit. guidelines are that you should still wear a mask if you're vaccinated or not. back over to you all right. americans have a lot to absorb in terms of rules in the coming days look at the road map for the rest of the hour starting with the bull case for coin base. with that stock reporting the first quarterly results as a public company plus is the new york exsodus overblown. >> and later this hour, the ceo of the national association of manufacturers, jay timmens on the economic recovery, infrastructure spending, the potential impact of corporate tax changes. "squawk on the street" will be n'gonyerrit ck dot awhe. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision.

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keep your eye on coin base reporting on a wild week for crypto kate has more. hey, kate. >> definitely a wild week here one of the biggest headlines out of coin based earnings coinbase saying it's going to start letting clients trade dodgecoin. during the first quarter brian arm strong says dodgecoin will be up and running in six to eight weeks. he talked about some approval process for coins. he didn't give much detail and why it will take up to two months he says going forward, they're focussed on adding new assets faster part of the need for speed is competition. there are a lot of new players

in the market offering crypto trading for free, including robin hood that could put pressure on coin base's margins the cfo told me it's great that everybody wants to get into crypto, but it, quote, also means we need to move faster she says they could have done more trading come yum if they -- volume if they had the assets on their platform coin base tripled in the quarter. 56 million users they say this current quarter right now is on track to match or exceed those first quarter numbers. coinbase results a closely linked to the performance of cryptos. roughly 94 % of net revenues came from transaction fees the company, of course, benefitting from the bull market in q-1 but highlighting some volatility going forward in crypto currencies coinbase is not the only thing boosting doejcoin in this wild week elon musk after calling it a hustle on snl, today he tweets he's working with the dodge

developers to improve system transaction efficiencies as he calls it potentially promising. back to you, carl. >> yep what a week it has been for musk, tesla, crypto, coinbase. thank you so much. a lot of green arrows on the screens today. nasdaq up 200. s&p 4155 as we add ttho e turn around on thursday don't go away. erformance at pgi. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. in business, it's never just another day. it's the big sale, or the big presentation.

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welcome back it's time for our etf spotlight. we're looking at the pot stocks. ticker mj in the green up more than 30 %. the top holdings like till ray helping the cause. you can see the shares up 2.5% right now. one pot cannabis name dropping is aurora. separately the company also announcing a move in it u.s. stock listing to the nasdaq from the new york stock exchange citing lower costs there shares of aurora are down about 3.5%

they're down more than 15% year to date. david? >> thank you, morgan despite the attention to that exodus from new york city, tens of thousands oh people are moving in. or perhaps even buying an apartment for the first time our robert frank has that uplifting story for us robert >> good morning, david in fact, yes, more than 20,000 people moved into manhattan in the beginning of the year. that's according to the data tracking firm unicast. low mortgage rates and prices allowing many to buy or rent for the first time april saw the highest number of new rental leases on record with over 9,000 new leases. rental prices down 21% landlords now giving an average of more than two months of free rent apartment sales also strong in the first quarter thanks to people like gregg franklin he's a chicago native. just started a consulting job in new york city. while he planned to rent, he and his brother were able to buy a one bedroom in midtown

manhattan. >> me and my brother hated the idea of paying rent. we thought okay, if we're going to pay $2,000 a month, we might as well get some of that back. >> the problem is the city still has a near record amount of inventory. there are over 20,000 open apartments for rent and over 9 thourkts for sale in manhattan the vacancy rate three times the luxury average the largest number of contracts over 5 million in over a decade. david, finally we have a new wave of new yorkers who can afford to live here. now all we need is for someone to pick up the trash and we'll start to have a city again >> you are just so on my issues. yeah of course important may i don't recall -- mayor election and most of them are not going to pay the highest taxes, i guess. robert, what does it say overall about the economy for the city at this point or what the

expectations may actually be in terms of whether you can really raise enough revenue to meet the $98.6 billion budget >> the big question is property taxes. as you know, the highest source of revenue for new york city, only 15 % of office workers are back in the city so the commercial side of real estate is still really in the tank probably going to get wors before it gets better. the residential side, again, strong we're seeing strong income taxes in the city. so you know, the big question will be what happens to commercial real estate and we won't know that until the fall, and even the companies don't know how many workers will actually come back and for how long that's going to be the big question to watch. >> robert frank, thank you we're going to go back to the crypto currencies rallying this morning the major assets we follow let's bring in tribe capital co-founder and ceo and a former partner at social capital.

welcome to the show. thanks for joining us. >> thanks for having me. >> there's a lot to get to let's start with the fact that we just got the first results from coinbase as a publicly traded company seen very much as a proxy from an equity standpoint for the crypto currently market right now. your take away >> yeah. the parallel that we like to draw because we spent most of our careers in network effect companies. so broader internet, google, facebook, yahoo. you say where is coin base today and how is it starting in roughly about 50 million users starting to use it about 6 million mtus, monthly transacting users. if you think about the global population in the united states, southeast asia, latin america, you have massive growth to get to about 780 million to about a billion people using this. you have a 10 time to 100 time proposition over the next i call

it three to five to ten years, especially since it's super linear exponential growth. >> given that fact, i know you've invested in coinbase and other crypto platforms in the past you've made a $120 million investment into cracken. a close competitor to coinbase, and you're on the board there as well how do you decide given the fact that this landscape is just exploding and there are different ways to as an investor potentially play it right now, and not a lot of regulation to go with it necessarily either, how do you decide where to put your money to work >> you could asked the same question about social networking, the internet i think the way we'd like to think about what's happening across the board with bitcoin, alternative currencies is visa wasn't a network we thought about with hardware. it became software and you have edges and nodes of how that connected people. if you think of currency as a network of how people connect

through goods and services, how large is it and where do you put it the early innings of the internet was amazon, impoogl, eventually facebook, twitter, linked in. and so while we think about coinbase or cracken or ftx or decentralized or centralized changes, how proliferated are they in our everyday lives and where should you cut the capital? in some senses i say put your capital in or invest in protocols across the board anything that has traction so we think about gross demand we have more data than anybody in the world for private and public companies when you think of an open call programmable and upgradable where you put your capital, it's anything that's gross demand toward the future. payment, rails, settlements, et cetera >> we keep our eyes peeled for any news about a big bank establishing a new trading desk, creating new instruments, etfs how critical is that for the

broader crypto population, and where would you look for it to happen first with which big player? >> i think the way to think about it as you have every day people bottoms up retail and then you have institutions that are starting to adopt this. and so when you have flows of capital all over the world starting to adopt different alternative coins, bitcoin and the liquidity that comes through that system, tokenizing of securities and assets, who are all the people that are going to play with it i think you're going to look at every major bank and every major company and look at every major technology company that's thinking about revolutionizing or staying current with their customer base. they're all going to use it. i wouldn't name any names but you look at every fortune 500 company, they're thinking what do i think about block chain and crypto >> yeah. i'm curious what you think about doged coin right now. i wonder who you think as the

last laugh especially given the fact that we've seen the tweets from elon musk in the last 24 hours. coinbase looking to launch a trading service around that coin as well. >> yeah. if -- what's great about what elon has done to the overall community is bring it overal attention. it's kind of a call to arms to think about hey, dogecoin or bitcoin, may or may not be green. it uses a lot of energy, but a great thing about crypto and block chain is it's programmable and upgradable and so the fact that you have that ability to make changes over time is i think what he's calling other folks in the industry, and technologists to start figuring out to fix. the early stages of the internet, the early stages of social networking, you can make an argument that they weren't green. they weren't efficient, but they got more efficient over time another piece that asked and talk through is look, if you

think about how we print cash, how we distribute it and secure it, it's about half a percent to 1.5% of the gdp. that's fairly expensive. >> when you talk about the early stages of the internet in terms of a metaphor, i can think of another sector you're invested in where it's maybe a similar comparison the space sector you're in relatively, moment us, looking to go public via spac. i wonder what you think not only of that sector but also of the possibility of all the companies coming to the public market in coming months. >> if you take a step back and look at the overall sectors of technology, what do you have in bioinformation, it's more programmable faster time. we've all felt the effects of that with mrna technology and getting out there quicker, better, faster who knows what it means over the

next five or ten years we're talking about block chain that's programmable, upgradable. and i think the same thing is in frontier when we think about space, space manufacturing, launch vehicles, quicker, iterable, design that's faster so we can innovate quicker. when we think about space, vaccine delivery, technology companies, software flows, they're in the same plethora of innovation at the same time, you take all that and say how do you make the companies faster and better and innovate that's the piece that is a resounding theme across all the sectors. >> thank you for joining us today. >> thanks for having me. dow session high was up 328. we're just off the highs of that let's get a covid update for the first time in three weeks india's top leader is addressing the country's devastating crisis the prime minister calling the virus a, quote, invisible enemy

and saying that the nation has lost many loved ones india reporting another day of more than 300,000 new covid cases. pushing the total case count above 24 million singapore is tightening covid restrictions again that's after seeing an increase in cases with an unclear link to alrea alr already-identified infections. it limits gatherings to two people dr. fauci telling msnbc this morning that elementary aged students likely will not be vaccinated until after the start of the new school year and 1 .7 million people passed through security check points yesterday that's a new pandemic era high despite the new cdc guidance on masking, the tsa says that masks will continue to be required for all travelers through mid september. you're now up to date. more "squawk on the street" right after this the world's first fully autonomous vehicle is almost at the finish line what a ride! i invested in invesco qqq

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we continue to wait for the quarter about infrastructure, policy in the white house. the national association of manufacturers is releasing a new study detailing the short and long-term policy implications for a corporate tax hike with us this morning the ceo of the national association of manufacturers. it's always good to have you welcome back >> good morning. so very similar to what we talked about just a few weeks ago. a 28 % corporate tax rate would result in 2 million jobs lost in the first -- or 2 million jobs lost in the first two years and 6 million jobs lost in five years. some folks are talking about a 25% rate, and while that might be well intentioned, it has a very similar detrimental effect on the economies 5 million jobs lost over ten years. so we don't think that's the right way to go.

we've presented other options such as public, private partnerships user fees. bonds for financing of very large infrastructure investment. which, carl, we are very much on board with >> so 25 is still a million lost i assume there's no number between where we are today and 25 where nam would be happy to settle at? >> first, you have to look at the proposals during the campaign of increased taxes on many things including not only large companies but small companies as well. and small businesses and that's what our study shows. that shows the impact of those tax increases. and the bottom line, carl, is that when we receive those tools that we argued for for decades, a lower corporate tax rate, a lower rate for small businesses, it resulted in job increases that were record for 21 years. we had more jobs created over the course of 2018 than had been

produced or had been created since for 21 years before that we saw record investment in manufacturing facilities we saw increases, record increases in pay, and benefits we don't want to lose that and i know we will take several steps forward when we invest in infrastructure there's no doubt about that. but we don't want at the same time to take steps backwards by penalizing those businesses that are hiring and investing in america. >> inevitably, jay -- jay, inevitably there are going to be people who argue any worry about job losses is serious and legitimate but when you have jolts arguing there are 8 million job openings in the country right now, gdp is looking to grow ten in q 2, best earnings season for the s&p in a decade that maybe those worries are a little bit easier to dismiss right now. >> well, i suppose you know, the

narrative we're in good times, so why not punish business it may be some sort of a popular -- it might be popular in some sectors. i think the most important thing we have to realize is the reason we are where we are, which means a strong economy coming out of a pandemic is business has been doing the right things for the past 14 months we've been keeping people on payroll as best we can the same jolt report, i will say, carl, shows 700,000 jobs open in manufacturing today. that's a record for the sector that's not particularly a good record that means we can't find the talent that we need to fill these incredible jobs that we have open in manufacturing jobs, by the way, that pay higher than any other sector of the economy. but there are consequences to government actions when you drive up the cost of doing business, it means less investment it means less jobs

that's a fact. we've proven that fact we proved the opposite by getting the tools that we were given in 2017 with competitor tax policy we proved with the right tax policies in place, we're going to invest and hire and raise benefits we did it. we don't want to go back to the archaic tax policies to the past >> to go back to infrastructure. we have a cracked memphis bridge we've seen in the last 24 hours something like 90 barges that backed up in the mississippi river. we're getting word from the coast guard that traffic is starting to move again but it's one more example, i think that highlights all of the pain we've seen within supply chains, within transportation networks as well right now as the economy fires back up. i wonder based on your conversations with manufacturers that your association represents whether people feel like companies feel like the worst is

behind in terms of some of these bolts necks and the costs that are -- the result of them, or whether it speaks to potentially more pain ahead. >> no. the worst is not over, because we have not made a substantial investment in infrastructure in decades. if you look at a lot of the infrastructure that we put in place, it was really a result of the 1950s and 1960s. i mean, that is -- those were incredible investments then. it helped us be incredibly competitive globally now we're falling behind you'll see the bottle necks. just look at the pipeline issues we've just had that's critical infrastructure as well. and look at what's happened to the ability to obtain gasoline something that literally a week ago we took for granted. look how quickly that fell apart. the same is happening in the ports. the same is happening with our drinking water systems bridges, 55,000 bridges in our

country are structurally deficient. we're hitting a consistent d to d minus from -- on our grades for infrastructure in the united states that's not senable for -- acceptable for a country that is exceptional and leads the world. and infrastructure investment at this time, and by the way, i'm very optimistic. i'm very gung ho that we can get a bipartisan agreement i've talked to senators and congressmen, republican and democrat i've talked to secretary buttigieg and folks at the white house. we've presented our plans, building to win. and we are there ready to help get this across the line i think we can do it this year >> but jay, you're not willing to pay anything for it right? in terms of the corporate tax rate, which you just termed ar c cayic even though it averaged roughly 35% and we went through recessions and booms and now you're saying we need infrastructure, but not corporate america. not even going to go to 25

>> so i think you have to look at how our country has changed, and not only our country, but the world. so the rest of the world is frankly lapping us when it comes to taxes on job creators they're lowering the cost of doing business in their countries to try to attract investment to their shores we don't want to see that. we want the investment to be in the united states. that means we have to have competitive tax policies and again, we proved in 2017 or after 2017, in 2018, 2019, and 2020 that with the competitive tax policies, we would invest and hire and raise wages and benefits we don't want to turn our back on that. that was good news for the american economy we've also offered alternatives in our building to win proposal. user fees. they're going to hit business and hit them pretty hard, but they're very specifically what we're trying to accomplish when it comes to using various infrastructure systems throughout the united states

it makes sense we're talking about bonds. if there was ever a time to use debt, it's very a project that's going to last 50 or 60 years something that our grandchildren, even our great grandchildren are going to be using in the future. why not invest in that today with debt like we would our own homes, and pay for it over time? also public/private partnership. there's a lot of private sector dollars that are ready to go into some of these infrastructure projects. and by government and the private sector working together, we can really expand on that, and there's been some really good ideas coming from folks like senator rob portman about some repurposing of dollars that already exist that can be used for infrastructure we can do this without punishing those people who are producing jobs without punishing small business, and companies that are creating jobs and investing in america. >> jay, we're hoping that the

picture on infrastructure clarifies a bit in the next couple weeks and we look forward to checking in with you if and when it does. thanks so much appreciate it. >> great to be here. >> as we head to break, the s&p is up about 2 1 -- 1%. we're on pace for the best day since early april. here are the legagrds. stay with us ♪♪ ♪♪

we check in with the faang stocks after a rough wk.ee find out which one would have more pain ahead. more "squawk on the street" coming up.

award winning author with a new book out "amazon unbound" brad joins us this morning brad, congratulations on this. i can't wait to dig into it. thanks for being with us >> thanks, carl.

>> you wrote about everything for a decade ago what was about bezos as an innovator. this sounds like bezos as an innovator at scale and operating globally and with incredible discipline is that the general take >> and perhaps a monopolist. someone who has built an empire beyond amazon. "the washington post," i have a chapter on the remarkable turn around there blue origin, his space company which is trailing badly elon musk's spacex. and of course the personal saga and amazon's navigation of the pandemic >> is this about bezos himself and digging deep into his own discipline and personality, or is it about the team he's assembled at amazon which we know is a pretty cohesive group? >> you can't separate the two. the story of amazon until probably sometime this summer is the story of jeff bezos. it is scaffolding built around his brain and int lek and drive

and personality. all the assets that he has, and some of the deficiencies a lot of people look at amazon the culture and the fulfillment centers in the offices and say that's a tough culture it can be a mean culture at the same time, the company i wrote about in the everything store was this small little $80 billion market cap company it's $1.7 trillion today the book really shows the trajectory, how it got there >> brad, it's david faber. a number of years ago when we did a documentary on amazon, you were very helpful. it's funny when i think back on that, there were certain things we were looking for, i remember, even photos from the early days. employees we were trying to reach. and suddenly nothing was available. nobody would talk to us. i can't imagine how much -- what you faced from the bezos operations, so to speak, but i'd love you to talk a bit about it. particularly in light of what i know is also in the book in terms of how we dealt with his

divorce, and any number of other things associated with that. >> david, i don't want to say the walls have come down at amazon, because they really haven't, but i think they sort of understand that it's not enough to reject folks who want to understand them better and just sort of move forward. the company is too big now. bac" and how they cooperated with that i talked with dave clarke, the ceo of the amazon business, andy jassy, probably gave me a dozen or so senior executives. bezos not. he prefers to remain out of reach. i don't know i think the times since when he helped me with the documentary amazon has opened up a little bit. >> brad, it's morgan congrats on the book i can't wait to read the rest of it, especially the part on blue origin bezos as the monopolist, i see

this tigdbit here talking about the trove of data from amazon third-party vendors to make competing label products and lying about it that gets at the heart of the antitrust debate and investors are keeping an eye on when it comes to a company like amazon what do you mean by that >> something so easy for regulators and lawmakers to understand in this complex business the question is, when we look at the amazon products, have they decided what supplement to introduce by looking at the data of their third-party sellers and what's working they said they don't do it and if those policies were broken they're going to investigate it. i don't know that they've lied about it as much as obfuscated the question they showed me the spreadsheets from third-party sellers for a

while the cookie jar was open and so this is one of the areas in which i think regulators in the u.s. and in the eu will take a hard look at >> brad, again, the book, "amazon unbound" we wish you much success thanks for coming on good to see you. >> thanks, guys. >> as we head to break, take a look at some of the players in on-line sports betting a lot of green arrows today. rebounding after what was tough week draftkings up more than 9% right now. still poised for the seventh weekly decline in eight. there's more "squawk on the street" on the other side of this break so ayitusst wh the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim.

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. more governors announcing they are opting out of the enhanced unemployment benefits but do states have the legal right to refuse the federal program? rahel solomon has more for us. >> hi, david the number of states opting out currently stands at at least 14 and as you said, it's growing. 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. it's about one in nine of those currently unemployed one group sounding the alarm opting out of at least part of that program may not be legal. the national employment law project outlining with while other cares programs may be discretionary, pandemic unemployment assistance is not. >> it states that secretary 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 they force the states to continue or recruit states that will administer the benefits the dol saying that they have received that memo morgan, back to you. >> rahel solomon, thank you. major averages are higher poised to end the week down. that's going to do it for "squawk on the street. "techcheck" starts now ♪ good friday morning. welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa coming up this hour, disney falling short on subs. the stock does follow suit why that slowing in streaming is