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tv   Squawk Box  CNBC  May 19, 2021 6:00am-9:00am EDT

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267 points off the dow yesterday. we'll show you what's moving right now. crypto crumbling, bitcoin tipping below 40,000 it's now fallen nearly 40% in four weeks and an executive shake-up at jpmorgan the move that cemented three of jamie dimon's lieutenants as front-runner we'll see that it's wednesday, may 19th, 2021 "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. this morning, you better look out, buckle up right now because u.s. equity futures are under some pressure. this comes after a down day
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yesterday. the dow was down three .75%. and nasdaq down 0.6% this morning, there are additional red arrows and these are in particular focused around the nasdaq the technology named with the nasdaq down 175 points on a percentage basis that's the biggest decliner right now that's a decline of 1.5% let's keep an eye on that. dow futures also weaker, 240 points and s&p down by 37. treasury yields have been coming from a little bit of pressure at least from where they were yesterday. if you're looking ten-year, closer to 1.6% -- actually at 1.66%. so, not far from where we were at this time yesterday 30-year at 2.7%. and two-year, 0.153% and you've got a lot of people invested in crypto that are
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invested in nasdaq high flyers but crypto, bitcoin hit a low of 38,5 so overnight. actually falling below 40,000, that's the lowest since february 9th. yesterday, china warns against crypto trading, warning them not to conduct any business related to virtual currencies. that set off real currents not just on bitcoin but across the entire cryptocurrency. evening you are down by 12%. separately jpmorgan said in a note yesterday that institutionain the last six months if you want to take a look at stocks that hold or transact in bitcoin seal how they're faring as well. it looks like tesla, the one we tie closely to bitcoin down
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2. 2.4% coinbase off by 1.75%. guys, the chicken and egg scenario, when you see the big tech names, the nasdaq under pressure, you tend to see pressure on bitcoin and other cryptocurrencies but it's probably because a lot of those are the same holders people who are active in one might be active in another if you get a drawdown on crypto, you may have to pay for it by selling stocks in other areas. >> yeah. well, money is cheap there's a lot of area where is the money went in. bitcoin is supposed to be the answer to cheap money. we've seen it but it doesn't work that way. coinbase had its own issues with the convertible, right >> right >> that's the way companies are supposed to work but it is well below the reference point, coinbase, with the fanfare of a month ago that we talked about. and you should raise money if
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you feel like you're getting good value for your shares in convertible offering you can be opportunistic even those a convertible dead-off that's down another nine points to 230 today but, remember, 38,000 seemed absolutely -- we had -- i think melissa and santoli were on, and we were like at 28,000 and santoli was there when katie stock and i were joking about the 50,000 he said at 28,000, would you buy? i go, i don't know i don't know so you're not a hodeler, because you're not welling to say 28 like oh, my god. >> we mentioned this only brings us back to where we were on february 9th >> right >> if that tells you how quickly
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these currencies have run up -- i don't know what we call them -- crypto, crypto has run up, back to the levels of february 9th we're not talking years of retracement, we're talking months >> right >> you're supposed to stack now, bec. you're supposed to stack that's what the true believers do when you get an opportunity like this. stacking the coins >> stack the chips >> yeah, start stacking the coins. >> like sitting at the poker table or the roulette table? >> yeah. >> or the craps table, is that what that refers to? no gambling here >> if you look at a chart. you look at -- hyperbolic -- it goes -- and you look at some of the -- on the left-hand side where there were, you know, stopped for a while, things were down -- i don't know where tell goes but 30,000 seems like it looks like a place where you might easily get and maybe it stops there but i
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don't think -- >> if that's the issue -- it's supposed to be a belief system, you need to believe, right it is a belief system. that's what it is. >> it was $10, you believed to the extent it's worth $40,000. so there's still some believers. >> yesterday, you thought -- you believed that 45,000 >> you, who? >> not you no, no, i'm saying people, they were working at 45,000 yesterday. there were people two days before that believed it was 48 and now 62,000 >> and 40. on twitter, people are mad at him at 38,500. it's like how come you're not more exact about where it's going to stop going down as if anyone in thd could possibly -- >> but he's right at this second >> he is right at this second. >> it's above 40,000 >> but i think there's a larger
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issue, what jpmorgan is saying and what we tried to get with novogratz yesterday, must of the last several months is a function of not just a belief in retail investors, but a belief until retail investors that institutional investors were about to jump into this in a major way, tesla was first, an microstrategy, and on their balance sheets and you're looking at whatever number you want. now, you're at a point where tesla -- you know, elon musk who has publicly thumbed his nose at the s.e.c. and does all sorts of things that are unique and unusual says he's not doing and then big institutions doing it jpmorgan with a note out saying big institutions are not doing yet we have novogratz on every day trying to tell us that big institutions are doing it.
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so i think there's a lot of noise, but a little bit of confusion to talk about what's going on here. >> it can go to 20 and back to 30 and then 62 and go back -- and then the gold bugs, you know, they're funny, some of the most well-known gold bugs who really have been trashing bitcoin from like $200 to 62,000. and they've been, you know, predicting gold is going to 5,000 or 10,000. they're wrong year after year after year and it may eventually. so to take a victory lap with this thing that they've told trashed and missed from 62 to 40, when gold is still sort of where it was eight years ago when they were predicting it to go to double, whatever it's funny it's like i told you i told you, it's going to happen, nony, none
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no noneny >> when you get that perspective fervor, it's like you're rooting for your crowd by the way, it's really fun to be involved with speculative fervor when things are going up. i'm not just talking crypto, anything out there, nasdaq, any of these places it's been really fun lately to be involved with any of it because it's gone nowhere but up all of a sudden, you look around and things are down and you get a little nervous we'll see, maybe this is temporary. >> i'll start doing a henry blodget, you know, his prediction somewhere between zero and 1 million is what he says. >> and that's about right. about right. >> which is what distinguished him. >> and, by the way, you don't know what you're going to get when you wake up any given tell me it's not the first thing you check when you wake up, you
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have no idea within 20,000 and $30,000 where it's going to be >> i think that range is really good for a couple years, zero to a million. that's my intermediate and long-term forecast, zero to a million. >> henry is not here to defend himself but yes -- >> i'm saying he's smart -- he doesn't need to defend himself i'm plugging him i'm plucki plugging his analysi. he's brilliant >> uh-huh. of course, bitcoin is not the only thing going on we ho sho take a look at the "squawk stack. first of all, yesterday, wti touched its highest level since march 8th before closing down. wti above $62 a barrel at this point. aaa gasoline is $3.04 on a national average, it keeps climbing even as the colonial pipeline has restarted even as things get back to normal.
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check this out, bank of america and jpmorgan, the lead story in "the wall street journal" is how much money is flowing into financial stocks this year it's a record. you're talking $32 billion that's flowed into the financial stocks just in the first, what is it? five months of the year. not even five months of the year that's a record for the full year you're really talking big moves for all of these, bank of america and jpmorgan down slightly big gains. walmart was up by 2.1% yesterday. a little pullback this morning but that's after the retailer came out with the better than anticipated numbers. today, we'll hear from target, and then brian cornell, the chairman of target right here on "sex and "squawk. and a.g. office which had previously launched a civil
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probe now says it is criminal and working alongside the manhattan district attorney's office on the criminal investigation. nbc news previously reported the probe of the trump administration is focused on whether it had inflated its assets for purposes of tax breaks and access to loans and the trump administration has yet to respond to request for comment from nbc news. but it does appear that things are going to potentially get more complicated for the president. we will see. >> that was -- what was that, "the new york times" >> the former president. >> "the new york times" -- that was a "the new york times" piece from a couple years ago, that highlighted a lot of those issues about the inflating -- you can do a lot with -- >> there was a lot -- appears a lot of inflating of values >> right >> and deflating of values for the purposes of taxes. that, if true, would be criminal >> right you said it back then, that if it's true.
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and if it wasn't, then it's not. if it is, then it is but it's taken a long time to finally -- >> it's taken a long time. but letitia james' office and others -- i don't know, it will be very interesting to see what happens. >> we shall see another one. coming up, futures pointing to -- it's gotten worse, really, in the last 45 minutes down 250 points after yesterday's slide of stock we will talk investment opportunities which stocks are cheaper today, in the portfolio. lowe's just reported a quarterly profit of $3.21 a share comparable sales were up better than expected 24.4%. though, we tell you that, the stock's down 2.5%. it's good to have one additional line that maybe explains that, and we'll look into it a little closer and better than expected earnings and better than expected comps
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we'll explain that and target set to report, we'll bring you an exclusive interviewi cw theo brian cornell. "squawk box" will be right back. at fidelity, you get personalized wealth planning and unmatched overall value. together with a dedicated advisor, you'll make a plan that can adjust as your life changes, with access to tax-smart investing strategies that help you keep more of what you earn. and with brokerage accounts, you see what you'll pay before you trade. personalized advice. unmatched value. at fidelity, you can have both. ♪ more than this ♪ in business, it's never just another day.
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retailers are unin, you know mid-orgy we're hearing from target and t.j. maxx. and lowe's, let's start with lowe's, out with earnings, deep estimates. but the shares are tumbling. went up a lot, obviously it's been a covid plate of some extent joining us is kate hatis, ceo and chief officer. kate, i don't know if you want to comment specifically on lows. but we are reopening a lot of these names were benefitting from stay-at-home. just the whole theme do you think that's part of it, backing up, or is there manage in lowe's results that are
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troubling for you? >> hi, joe how are you? good morning you know, i think two things it has gone up a lot also, home depot, remember, is up 33% so hope depot had stronger sales. i think between those two reasons, up a lot, 20% on the year that's a big move. >> yes, and do you buy into the notion that we are at an inflexion point with vaccines and no masks and everything else it looks like we're hopefully getting beyond the pandemic, and some of the beneficiaries of that whole trend will at least pull back a little or do you use any of these opportunities just to add to position >> no, i do buy into the position, joe, that we are an inflexion. lowe's will continue to benefit for a couple more quarters remember, you got potential infrastructure going on. home sales going up a lot. a lot of money people are pouring into their homes,
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lowe's, home depot, i think will continue with the big numbers. look, i think they're going to have a big year. at the very least, a big couple of quarters. you look at things like tjx, they're going to benefit they closed 24 stores last year. they're going to open. are people going to go back? digital revenue, sales are huge. everyone is shopping online. for the fourth quarter, lowe's was up 100% on the digital size. the big question is have consumer habits permanently changed? >> do you prefer tjx to home depot and lowe's what are your favorites, i guess they have e-commerce themes? >> yeah, at this point, i definitely prefer tjx to lowe's or home depot.
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i like bumple. it went public this year it's the dating app. from the bumble only, 43% overall. this did better than match.com people have been vaccinated. they're out there, who knows, joe, maybe they're out there dating again >> right that's one way to play the reopening. no doubt about that. you point out good headwinds for retail, cate, it will be pressure to try to fill the jobs, higher freight costs, driver shortages part of that pressure and then supply chain issues so, do you need to keep in mind all of those things, i mean, it seems like everybody's going to be somehow affected by that? i guess you find the ones you like and realize that's going to be the backdrop. >> you do. and i think that's why tjx looks good
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tjx has not participated walmart up 6%. that's huge for walmart. typically, only up 3% a year yeah, wage crupressure these companies are big employers. wear pressure. supply chain walmart is planning for the next ten years to put $350 billion into made in the usa that's a supply chain problem. are these issues going to work out? probably will it take a minute? that would be my guess >> all right, taking away a lot from this, cate. i was going to say, yeah, i mentioned these things because i was reading things that you were pointing out i did sound smart but it was your stuff i'm going to take away the bumble stuff bumble is a buy. cate faddis, ceo grace capital thank you. giving credit where credit is due, well done, joe
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anyway, when we come back, it's not just the stars we were just talking about with walmart, target shares are up 18% year to date that company has set a report. just in the next few minutes we're expecting the numbers. we will bring you the numbers as soon as they hit and then an exclusive interview with ceo and chairman brian cornell. "squawk box" will be right back. this is hannah, she's a posh virtual receptionist at the ready 24-7 to answer your calls and assist your clients. you can't be in two places at once. let posh answer. posh virtual receptionists.
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the u.s. treasury department is postponing a ban on trading shares of companies with alleged
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links to the chinese military. but the ban will not extend for long the new restrictions were originally scheduled to take effect on may 27th, but now they'll be taking effect on june 11th that move by the biden administration extendsthe grac period for investors to comply you can see the stocks trading higher cnooc up andrew we'll bring you the numbers and exclusive interview with its ceo brian cornell. and as we head to break, a look at yesterday's s&p 500's winners and losers hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this...
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all right. welcome back target just out with those quarterly numbers that we've been waiting for listen to this, the retailer actually earned an adjusted $3.69 a share for the first
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quarter. street was only looking for $2.25. that's a huge beat on the bottom line revenue also beating forecast, this came amid a surge in comparable store sales check this out, target first quarter same-store sales up by 29.2%. that was more than double the 10.7% consistent estimate on this i just want to run through some of the numbers on this, for the store comps, instore sales, up 18%. that is phenomenal 18% instore shopping, talked a lot about the number of traffic, amount of traffic, coming back to the stores as things open up. that compares, by the way, with the first quarter a year ago where they were up 0.9%. and things going digital digital comps were up 50% this quarter versus being up 141% in the first quarter of a year ago. so you're talking about incredible gains up 141% in the first quarter a year ago and then up 50% in the most
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recent quarter among the same-day service things like order pickup, drive-up and shipt, 90%. 90% of target's first quarter sales were fulfilled in stores that adds to the margins everything they fulfilled in the store makes them more money that they actually have to use for shipping to get out to you traffic up 17% in the quarter, that is phenomenal traffic in the stores. it shows as things are opening up, people are still going to target the company says it gained $1 billion in market share in the first quarter. remember last year, they talked about the market share gains over the last year before that they had gained i think $9 billion in market share by their calculation. so a lot of good news here and the stock is reflecting that the stock is up by 1.1% before we got this now now up 1.6%. we're going to dig deeper into
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the numbers, get trends, find out what's happening with margins and what the expectations are we're talking with target ceo brian cornell about this quarter coming up at 7:15 eastern time guys, it's really important to hear what they're seeing even in the most recent weeks. we want to talk about the most recent weeks and most recent month. i think that's part of what we heard yesterday. lowe's being down yesterday. saying they've come up against tougher comps in the first quarter. he said on home depot's conference call, they did talk about slowing turns in recent weeks. the sales have kind of slowed down a bit i don't know if that's because of inflation that has played through with a lot of things you buy with home depot with the lumber we'll find out if that's the case with brian cornell. you've got to hear about that, inflation, supply chain issues everything we talked about, joe, tough to find workers in this environment. we'll get the chance to talk all
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of that with him right now, that stock is up by almost 2%. >> he's a good operator. we've seen that again and again and again. the cream of the crop during the pandemic has kind of separated itself walmart, amazon and target you know, does anyone buy anything anywhere else i don't know, i guess maybe a few places but cornell when he was on -- yeah, he's humble, but very confident, whenever he's on. i look forward to the interview -- to the interview, i'm going to let you handle that >> all right we will do that in just a little bit. but in the meantime, we're going to have a conversation about what looks like an executive move shake-up at jpmorgan that could cement the status of successors to j.amie dimon and squarespace going public
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today in a direct listing on the new york stock exchange. and where else can you see the ceo? well, right here on "squawk box. we're going to talk to the ceo in a first seen interview, you do not want to miss it a reminder you c wchanat us anytime on the cnbc app. a beautiful shot this morning of the capitol. we're back after this.
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welcome back to "squawk box. 130, then 250, then down 117 big numbers from target. numbers from retailers are pretty good. don't really explain the weakness but there's a lot that go into it obviously the markets go up and down on any given day. the nasdaq weak again this morning. and the s&p down about 34 points or so. andrew meantime, we've got a leadership shake-up at jpmorgan. maryann lake and jennifer piepszak makes them front-runners to succeed ceo jamie dimon. kate kelly, reporter for "the new york times." we've had these moments before i don't want to overstate what's happened there are moments when we thought things were narrowed down and then they weren't narrowed
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down maybe they're more narrowed down today. hugh, give us the lay of the land where you think this lands. >> well, to your point, andrew, let's take a stroll down memory lane the board put out a press release saying jamie dimon would be around and serve in his capacity for approximately another year fast forward three years to the current moment, with the set up of jen piepszak and maryann lake, both who served at j.p. dimon and both 50 years, we have the bakeoff between the two women who are in the position for successor of jamie dimon he's 65, jamie dimon is, he had
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a close brush with death we learned with covid at the beginning of the year. my understanding is the company says this, he's going to serve a significant number of years, the board has apparently asked jamie dimon to serve -- quote, a quote, diquot s quote, significant number of years, five, six, seven years. and the current thinking is that he will serve and ride off into the sunset, however, even though he's changed his mind and still going strong is my personal belief >> right >> kate, i'm with you on this. in that i remember the 2018 five-year mark which means we'll be coming right on it. i think there's at least another five years to go and the bank seems to be doing quite well what's your take >> well, andrew, right on. i was joking around with glenn shore the analyst from evercore yesterday about the number of
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years in which jamie has said or his representatives have said he's going to serve another five years. it's definitely more than just more than one five-year stint. the stock was relatively modest yesterday. we saw a spike in the morning but then fell but not by dramatic percentages by any means. shareholderers are confident with jamie i think we've heard great things about maryann lake and jennifer. they're both been cfo, and have an opportunity to run what is the jpmorgan's largest business. the bank is closing in on revenues, but it's still the largest business with over $50 billion of revenue per year. so i think it's interesting and very cool to see women advancing on wall street obviously, these two, if one were to be successor of jamie wouldn't be the first woman to
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run a major bank that opportunity goes to jane frazier who was installed ahead of citigroup in february i think they got a hit i think jamie thinks highly, as do shareholders of these two women. but not as all here, as hugh said that this is in the near-term offing >> right i hate the idea, hit by the bus idea, but if -- that's a phrase. kate, if that were to happen tomorrow and of course, we hope it does not, do you think daniel pinto gets that job? >> i think so. i think there are others they could tap. but, yes, i think daniel's in that position. i don't know that he's regarded as the ceo in sort of an orderly succession but, yes, if there was an unexpected need to fill the role, i think he's in the pole position >> right
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and hugh, if you were to look at these three potential successors is there anything that you would suggest that one of them would do to the bank that would be somehow different than the current path it's on >> yeah, i mean, i think that's a hard thing to say, right pinto who is the person who would succeed in sort of the zero to five-year time frame is, you know, a titan of the corporate investment bank, right? he's been a trader with jpmorgan since his days in argentina in the early '80s or '90s not clear what he would do for the huge retail presence then you've got piepszak and maryann lake you got a scenario where people know who is in charge. that's the point of this whether or not this actually
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comes to pass in five years if jamie decides to willingly able to let go of power, that is the question and other successors have left the company because of that, because they could not wait for him to leave >> hey, hugh, we've got to run but a final curveball for you specifically, which is we've been reporting all morning on bitcoin and its continued fall and jpmorgan's note in fact, saying its institutions may be moving away from it. jpmorgan has had an unusual relationship with bitcoin and jamie dimon has been saying things you have a relationship with crypto do you have a tyake on it? >> this is not a surprise. it's volatile and goes up and down violently let's go to jamie dimon. he says, look, i don't think it's something -- you know, that is a real investment
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however, the clients want it that's what he said. that's what i point to the clients want it, they probably still want it and i think they're still heading in that direction >> kate, hugh, good to see you both look forward to seeing you soon. appreciate it. over to you, becky >> thanks, andrew. when we come back, we'll take a closer look at the impact of the pandemic on billionaires. the short version -- well, the rich get richer. we'll have that story next and later don't miss our exclusive interview with target ceo brian cornell ter af company's big earnings beat. "squawk box" will be right back.
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welcome back to "squawk.
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check this out, president biden took the wheel of ford's new f-150 lightning electric pickup truck. at the dearborn, michigan facility, the president test-drove before the today official unveiling it goes from zero to 60 by his own estimates, and you don't want to miss jim farley on "squawk" tomorrow on a cnbc interview. a conversation you don't want to miss, becky. >> andrew, you hear he gave away details that he wasn't supposed to tell, 4.4 seconds from zero to 60 seconds. people complaining about it because it was ahead of the company's big anticipated release tonight. that's big publicity >> this is helping the release >> right, exactly. >> good publicity, if you can get a very well-known spokesman to start talking about these issues and trickling out information over time. anyway, our next guest has
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chartered the recent rise of the billionaire class and how pandemic stimulus has made the world even richer. let's bring the chief global strategist and head of emerging markets at morgan stanley. his latest in the financial times, rashir, thanks for joining us. when i first read that, i thought, oh, my gosh, he's going to make some ties how billi billionaires what are they talking about. exactly. it's hitting it, but i think the whole point of that piece was this it's just a staggering wealthy and it took me 20 years.
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>> there are a number of billionaires and it's just a staggering outcome. its a contentious wealth inequality it happened because the central banks were trying to prevent the economies from happening by putting all of that liquidity out there, the assets get
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inflated and the people who own the assets are the richest people. >> yeah, i think this is one of the biggest contradictions out there. something for the progressives and liberals they want easy money they want interest rates to remain low and the fed to remain very supportive to pay for the social programs and yet low unemployment on the other hand, the other ones were most charged up by what's happening in terms of wealth inequality. i really feel that you need to think about this contradiction and this is one of those columns i've written earlier as to why the liberals love the 1%, which is that it's the irony of this they are very sort of angry about the wealth inequality and yet those very policies i think leads to an increase in wealth inequality the good news which i mentioned in the piece as well is that a lot of the billionaire wealth is
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still being created in what i define as productive industry. manufacturing, that's what's leading the way, that's what's keeping i think this anger from turning into an outright populist revolt. still, the size of the billionaire class in the world now, especially in the united states, whose billionaires are 20% of the u.s. economy in terms of their wealth, that is something which they have to keep in mind. >> if tech and entrepreneur leaders are the billionaires who are the good billionaires, who are the bad billionaires >> it's hard for me to say anyone specifically, but my point is if you look at the industries which tend to be more prone to cronyism, government favors, rent seeking behaviors such as mining, energy, construction, real estate, that's what i see. now of course not all
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billionaire industries are bad, but my point is if you get too many billionaires coming out of those industries, that's when a bit of a backlash develops in russia and mexico you get too many leaders coming from those industries you'll find the anger is much more the countries such as the united states, when you have them coming up from tech and manufacturing, it's bigger than when the wealth is inherited that's a very big distinction. what's the size of the billionaire class in terms of how they're creating their wealth we have a lot of wealth being created in the industry which is compared to cronyism and the industries that's where you have problems >> rashir, you point out people who love what they do forlower and middle income and
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infrastructure and beyond. they have a plan to take the wealthier people and tax them with higher wealth taxes if that's not the solution, what is >> yeah. i think that in terms of if you try and do that, it has also negative outcomes. we saw that in sweden. one of the big surprising countries that showed up at the top of my list is sweden which many progressives say is this country with the model it had a lot of wealth creation there. that has growth in terms of trying to have wealthy equality. i think the book of central banks needs to broaden to look at what are the consequences of their policies and if you get
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wealth equality with all of the policies you are doing, you can't have it both ways. i want easy money and yet i don't want wealth inequality it just doesn't work because the scale is so huge that unless you turn off the monetary spigots, the wealth inequality keeps on increasing >> sounds like a bit of a quandary still not sure what the answer is. rashir, thanks for being with us >> thanks, becky always good to be here coming up, exclusive interview with target ceo brian cornell. recently reported earnings, inflation concerns, supply chain issues and the post pandemic reopening. futures are under pressure but the dow's parent has lost less than 2%. 197. the nasdaq laggard led by asml,
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target beating on both the top and the bottom line. ceo brian cornell joins us for an exclusive interview to talk
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about the quarter, the state of the consumer, inflation and much more. crypto crumbling bitcoin falling below 40,000 now down nearly 40% in just four weeks. this comes as china ramps up its crypto crackdown details strayed ahead. get ready for squarespace. going public for a direct listing on the new york stock exchange we will hear from the ceo ahead of the first trade as the second hour of "squawk box" begins right now. good morning and welcome to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. u.s. equity futures at this hour unfortunately they stand in the red right now. the dow looking like it would open down 225 points
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nasdaq looking like it would open down 162 points and the s&p 500 looking like it would open down about 35 points we haven't even shown you bitcoin yet but we're about to do that. joe? >> yes hovering right around 40,000 here are some of the headlines including bitcoin continues its recent tumble now below 40,000 39 and change. it went through the 40,000 mark overnight. bitcoin had been just below 65,000 in mid april. people on twitter talking about colonial can you do colonial without crypto, guys >> no, you can't i wouldn't be surprised if that's part of the crackdown that you're seeing and part of the investigation that you've seen from the doj and through some of these exchanges and finding out where things go. it's that and the treasury
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department wants to make sure you are making a lot of money in crypto, that you're paying your taxes. >> that will happen. that's true. you cannot escape uncle sam. can you imagine if you knew you had to pay taxes on anything, including bitcoin, and not doing it i'd be looking over my shoulder every minute of the day. you just don't want to mess with the irs. >> but the irs thinks that people -- the irs thinks people are not paying their taxes they're talking about over $1 trillion if they start spending more on crackdowns they think there are people who are avoiding it and evading it not us. >> the problem is the -- as you know, the irs can hardly catch anybody because they have no resources. the whole thing is -- >> right keep beefing it up there is enough explanation if you fut money in you will get far more back in those
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uncollected taxes. i think that will happen. >> you both made it under the wire on may 17th you both did it? >> i filed a long time ago >> extension >> i did it the day of, as you know. >> day of? >> day of. >> if you get -- >> are you saying yesterday? >> you still have to pay you still have to pay if you get an extension. >> yeah. yeah i mean, i don't need to get into -- it's always complicated. we have all sorts of extensions and crazy things going on. >> you have a kadre of the finest accountants and lawyers. >> that's true we have a great team of people. >> a team? >> yes absolutely absolutely >> not just starting basketball team, more of a starting football team. 11 or 12. >> as you know, we spend a lot of time thinking about how we can overpay because we like to give as much as we can. >> can i just say one thing for
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everybody, we are family was a huge deal. renney went seven for seven in a nine inning game he passed away i saw that. >> charles grodin. >> name from the past from that great team that won the world series lowe's shares down despite upbeat earnings. reported profits of $3.21 a share. beating con sepsis of $2.62. comparable sales rose 24.4%. analysts looking for 24.3% increase take two interactive showed a profit they're behind grand theft auto and nba 2k take-two did give a lighter than expected forecast as vaccinations increased and pandemic restrictions are
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lifted >> meantime, we have a big week for direct listings in ipos. square space and oakley set to make their debuts. leslie picker joins us. >> reporter: good morning. squarespace today, oakley on deck for tomorrow. squarespace offers web space, domain and a space for independent creators they recently raised a private placement of $300 million at $68.42 per share just in march implying a $10 billion valuation. last night the nyse said the reference price at $50 a share 27% discount although this is nearly a benchmark to help guide investors on where to start submitting orders. it doesn't mean money is changing hands at 50 we will be looking ahead to oatly's pricing.
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it comes to market with several tailwinds such as a backing from oprah, that never hurts, new partnership with starbucks and prospect of expanding to asia. the ipo is expected to attract an isg the word sustainability, for example, is mentioned 112 times in oatly's perspective a leader of its product consumed in place of cow's milk results in 80% less greenhouse gas emissions. we found that the 12 ipos like oatly's with a clear esg bend in the last year jumped 45% on average in their debuts. more than 8 percentage points higher than their non-esg counterparts clear premium for the esg companies. we'll see if it can weather this volatile market. andrew >> leslie, what are your comps on that? are those food companies that we're talking esg or any company
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that sort of identifies as esg >> yeah, food companies, ev-related companies, companies that have to do with obviously improving the electric vehicle ecosystem. that's the bulk of them. >> is it real milk i think that's -- if there's any real question to be asked this morning, is it real milk what do you think? >> yeah, i mean, i think it depends on what you define as real milk. not oatly, another oat milk. people say it has more sugar i think it tastes good depends on what you're looking for. >> a lot of debate. >> milk moustache, i don't know if you can get that. >> leslie, great to see you and you can be sure to catch the ceo of squarespace this morning on "squawk box" ahead of their first trade in an interview coming up at 7:45 a.m. eastern time this morning. becky? >> it's not milk
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>> you say no? >> no. >> okay. >> no, it's not. no way. >> it tastes good. >> look -- yeah, i've used almond milk. i don't use it now it's the same as meatless meat meat it's not technically milk. i stand with the dairy farmers on that. >> okay. anyway, when we come back, an exclusive interview with the chairman and ceo of target brian cornell will join us to talk about the quarterly results the company put out just about 45 minutes ago we'll talk about the consumer. we'll talk about inflation we'll talk about the supply chain and much more. before we get to the break let's get a check on the markets this morning look out below dow futures down 256 points this morning, an even bigger percentage decliners than nasdaq which is down 165 points s&p futures are down by 37
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this decline with the dow if we were to open down would put us below 37,000 on the dow. something to watch "squawk box" will be right back. ) the world is going hybrid. so, why not your cloud? a hybrid cloud with ibm helps bring all your clouds together. that means you can access all your data, modernize without rebuilding, and help keep things both open and secure. that's why businesses from retail to banking are going hybrid with the technology and expertise of ibm. remember when driving was fun. it was an act of freedom and inspiration. but somewhere along the line cars just got boring. you deserve a car that thrills you. like sports cars with three pedals. trucks that take you to incredible places. colorful crossovers. and cars loaded with technology. and there's a car company that believes that too.
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his number... delete it. i'm deleting it. so, break free from the big three. xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. welcome back, everybody. target out with first quarter results. the comp sales up almost 23%
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from a year ago. digital sales, which is part of that, up by 50% from a year ago. that stock in the pre-market this morning picking up even more ground. last we checked, yeah, it's up by almost 4% this morning. 3.9% gain. joining us is brian cornell, target's chairman and ceo. great to see you this morning. thank you for taking the time. what happened? >> becky, good morning we've had obviously a string of really solid results going all the way back to 2017, but this quarter may be for me one of the highlights i think our team executed. store comp of 18%. great digital performance, up 50%. team effort. great supply chain support merchants, marketers, all coming together to support. the results i think speak for
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themselves >> brian, one of the things people have been watching, all of the stocks throughout the pandemic, stocks that did so well during the pandemic, people keep waiting to see when and if they fall out as things start to open back up i think that's been one of the huge questions home depot did say on its conference call that the trends seemed to be slowing in recent weeks. is that the case with you? what have you seen in terms of traffic, in terms of shoppers, in terms of what people are willing to do as other stores open up and as people get out and start doing other things >> becky, i think we're benefitting from investments we're making for years investment in home experience and curated brand and fulfillment services that we offer. that combined with the
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investment in our team, we feel good standing here about our outlook not just for the second quarter and the full year. it's around the consumer, the economy, the state of the vaccine. we feel as if the consumer just continues to respond to our in-store experience, the ease and convenience of shopping with some of our same-day services like pickup, drive up and ship they connect with great home brands, national brands and the service our team provides each and every day. we're feeling very confident about our position today and i look at the proof point from q1, we picked up another billion dollars in market share on top of $9 billion of share last year to me, that's just a sign that we've connected with the consumer we're building relevance and we're providing what they need and want throughout the year >> let's talk about that
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store comps up by 18%. same day sales up 90%. you look at things like the operating margins that come through with some of these things first quarter operating income margin was 9.8% for the most recent quarter compared to 2.4% in 2020. why was it so much more profitable what happened over the space of that year to make it so much more incredibly profitable >> becky, when you see the combination of stores up at 18% which to me is a highlight numbers and categories like apparel growing by over 60%. combination of store traffic and category mix really benefitted us we're seeing resilient consumers.
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i think that's going to continue so greatnation of store traffic and store comps, discretiona ary categories like apparel and same-day fulfillment services which now represent over half of our digital channel. we really like that transaction. it looks and feels much more like a store transaction from a profitability standpoint certainly is beneficial to us. >> so, brian, we talk all the time about where things are going. you haven't given guidance in a long time. you are giving guidance now. >> becky, the last time we talked 90 days ago and how much uncertainty in the market. we were wondering about the state of the economy would there be another wave of
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covid? what was going to happen with vaccine distribution sitting here today we have so much more clarity around what's happening in the united states i think we recognize covid trends are declining vaccine distribution continues to grow. i think there's much greater certainty about living our lives over the year. i think about backdoor restaurant, kids going back to school, back to college season i think about key holidays i hope you had a great mother's day. we had a frenetic environment with our stores on mother's day as consumers were shopping for flowers, greeting cards, wine and chocolate and gifts for mom. americans are going to come together for the first time in over a year. celebrate memorial day for friends and family the same thing is going to happen july 4th and labor day.
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so these big light moments are coming back for all of us. i think we're all excited about celebrating with friends and family again i think that's going to really provide greater clarity as we look at key holidays and key moments throughout the balance of this year so the clarity that we have today versus just 90 days ago gives us a much better ability to orecast the balance of this year and we expect to continue to see very solid comps and continue to grow a market share throughout 2021. >> you know, we have so many questions about the economy, about the consumer, about inflation. let's start with the consumer. how are they feeling these days, at least according to what you're seeing in stores? sounds like they are pretty flush with cash. how much do you think is tied into additional payments going out and how much is a healthy consumer with or without the government >> i think it's a confluence, becky, of a number of different variables. i think there is greater
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certainty in the economy i think the consumer has benefitted from stimulus but i'm also seeing examples of consumers horseback in our stores after being vaccinated and i've heard stories and i've been in stores with our team leaders, there are guests in our stores that they haven't seen in months and months who were using our drive-up lane throughout the pandemic who have been vaccinated and they're enjoying physically shopping in our stores and grabbing that cup of starbucks coffee and browsing the aisles, looking for what's new and exciting so i think the confluence of a stronger economy, a consumer who has been vaccinated, more confident, excited about getting back to their normal life. aural of those things are benefitting us we're seeing a much more optimistic consumer who is excited about getting back to the life that they have had in the last year. >> tows that show up in people spending more per basket
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everybody coming in spending more money >> i mean, we did see basket increase by 5% in the first quarter. obviously most of our comp was driven by traffic. obviously they're buying more categories i think for the first time in about a year consumers are taking their time and they're browsing they're in our apparel category and shopping for toys and electronics. looking for new things in their home as they welcome friends and family back into the home. we saw a nice uptick in home decore and seasonal. we've seen an increase in household beverage i think they're shopping all of the categories and they're excited to be back in our stores, shopping with confidence they're really excited about the newness we've provided but i think the investment we made in safety throughout the pandemic has helped us build trust. i think we're seeing the
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benefits of all of the investment we made in safety and health and wellness with our team and our guests. our guests are paying us back right now by shopping more often and shopping all of our categories >> brian, we only have a couple of minutes left. supply chain woes. "the wall street journal" said the supply chain has had problems getting shipments from shanghai to l.a. has 30 days versus 14 days you're not having problems >> we have an experienced supply chain. i think you know, we're the second largest net importer in the united states. if you look at our performance in the first quarter, look at some of the financial metrics, we added $2 billion worth of additional inventory in the system we're watching it carefully. we're maneuvering through some of the challenges. i feel good about our inventory
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positions and the improvement we're seeing in in stocks. that's going to certainly benefit us for months and months to come. >> are you having trouble finding employees to fill the jobs in your stores? >> becky, we're not. i think it goes back to investments we've been making going all the way back to 2017 when we said we were going to get to a starting minimum wage of $15 being an employer of choice in retail i think those investments that we made going all the way back to 2017. the way we care for our team throughout the pandemic. we've seen a really engaged team member and we have not experienced labor issues in our system >> higher prices for things like wages, making sure your supply chain puts you at the top of your lists, input costs going up, that all adds up to inflation. are those costs that you're able to absorb? do you pass it on to your consumer what do you see on that front? >> becky, we're seeing modest
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increases in pricing, modest inflation in our system but it is where we benefit from our multi-category portfolio we are seeing some inflation in food and beverage. you've been reporting that we've had this balanced portfolio where 20% of our business is in household essentials and beauty. 20% is in categories like electronics, toys, sporting goods. 20% is in home the other 20% is in apparel. we have this balanced portfolio that allows us to manage cost increases. it's what we do for a living our merchants, our sourcing teams, they work each and every day to make sure we continue to provide great value to the consumer who shops at target we're watching it carefully. right now i'd say for us it's modest, manageable and we're going to continue to make sure we provide great value for all of the guests that are shopping our store in target.com. >> finally, mask mandates. you all were one of the first chains to kind of follow along
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the cdc guidance to say that you would not be required to wear a mask in the store if you were vaccinated i guess the question becomes how do you police that you assume it's the honor code if they're not wearing a mask they must be vaccinated? >> becky, throughout last year we relied on the medical experts, the cdc to guide us through the right steps to take. we were one of the first to say we wanted all of our guests and all of our team to wear a mask when they were shopping our stores we made big investments in safety and health and wellness with plexiglass shields, social distancing, metering the number of guests in our stores and we're going to continueto rely on the experts that guide us through these decisions. we have eased the mask mandate we're still recommending to guests and our team members who have been vaccinated to wear a mask and we're encouraging our team and providing them paid time off and lift codes to make
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sure they can get vaccinated in most cases they can make an easy appointment at a cvs pharmacy inside one of our target stores to make sure they're vaccinated we'll continue to rely on the experts to guide us through the decisions. we'll continue to focus on making sure we have great sift at this measures making sure we're cleaning, sanitizing, asking our guests to social distance we're following all of the direction from the cdc throughout the summer. >> brian, want to thank you for your time today. >> good to be with you. >> we appreciate you coming on. >> hopefully next time we can do it in person. >> that would be great i look forward to it brian, we'll see you soon. take a quick look at target shares they're up i think by about 3.7% that was the last tick on it one other metric on a sales perspective, target sales up $4.5 billion this quarter versus
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the year ago quarter walmart sales were up, too they were up by $4.4 billion target did that with 1900 stores walmart has 4700 stores. impressive growth by stores doing so well during the pandemic and continue to do so target shares up 3.8%. when we come back, we'll take a check on this morning's other movers that are out there in stocks. "squawk box" will be right back. time now for today's aflac trivia question. according to this company's website, 75% of the u.s. population lives within 10 miles of one of its stores the answer when cnbc's "squawk box" continues what a day of up. ha ha. jill is certainly upset with that unexpected bill from her back surgery. aflac! let's see that one more time. ♪ ♪ (bleep) (wincing) oooh, right in the wallet! ouch! aflac! aflac would have paid jill cash directly to help with expenses health insurance doesn't cover.
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75% of the u.s. population lives with a u.s. population the answer, target
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still to come, futures in the red this morning now down 300 points. bitcoin back to 38,000 all the noncorrelated assets are correlated suddenly in terms of just from air coming out of maybe some of the speculation. much more on the markets, which stocks to keep an eye on that is next plus, we do have web hosting company squarespace going public in a direct listing of the new york stock exchange. talk to ceo anthony casalena ahead of the first trade stay tuned as you know, you're watching "squawk box" on cnbc ♪ ♪
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welcome back to "squawk box. i'm dominic chu here with your market minute. a couple of stocks to keep an eye on as the move overall are coming off earnings reports. target shares holding gains 3.3% lowe's down 2% i mentioned this because yesterday with home depot, walmart, macy's we got some positivity that faded a bit throughout the course of the day. we'll see what these stocks do in regular session trading. also, on the cryptocurrency front, yes, bitcoin tanking
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overnight. you can see bitcoin coin metrics 36,510 ether coins, down 24.50. even litecoin and dogecoin, 50 to 30% declines across the major, more larger market cap if you want to call them that cryptocurrencies keep that in mind. if you take a look at some of the moves on the heels of those particular weaknesses in cryptocurrencies look at the stocks tied to them. coinbase global. meanwhile, square and riot blockchain off they both either traffic in or have bitcoin on their balance sheets, maybe a little bit of both tesla also in that same mix as well also some concerns about vehicle deliveries and registrations in china driving some of the down side there we'll watch tesla shares for sure still coming off their highs, would you believe it now, seventh straight day worth of losses for lumber futures that
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we saw yesterday lumber still up 45% over year-to-date copper up 30%. this is a seven straight day decline. off 27% roughly in lumber prices in just the last seven sessions. copper is down 6%. a little bit of that inflation story coming off the highs we'll keep an eye on the commodities, joe back over to you. >> very interesting, dom 27% on lumber, then you did a good job in crypto, 27% in ethereum kicking up some steam. went through 38,000. katie stockton was on a couple of weeks ago back to 50,000 but it ended at 42 i think it goes back down tests 41, 42,000 when it was there a couple of days ago said there's no sign of a down side exhaustion on this
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>> it's closer to around 130, 2,000. that's a possible moving average support area regardless, the cryptocurrency space right now, i went to coin base and all of those market values, it's across the board. the whole cryptocurrency it's certainly something that's caught my attention. >> tech and nasdaq >> thanks, dom >> futures at this hour down more than 300. dom, very well summarizing a lot of the other moves we're seeing. we'll get to what i want to talk to the economic adviser, mohamed
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el erian tech selloff, not because suddenly the 10-year got out of control, mohamed that's still well behaved. still around perhaps the recent turn around seen in commodities and maybe in inflation and cpi has that gotten people thinking the fed may have to do something in terms of tape perfecting sooner than we thought before? is that what this is all about, the gravy train ending sooner than we thought or what is it? >> if they thought that the fed was going to change its policy course, good morning, joe, you would see the 10-year move no, this is something else, joe. this is the market's worried that the fed will be late. >> yes >> that's why you get this -- the market itself starting to question the liquidity paradigm because if the fed turns out to
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be late, then the fed may have to slam on the brakes. so what you're seeing is nervousness, not that the fed will move. otherwise the 10-year will be much higher in yield but nervousness that the fed will be stubbornly holding on to its transitory mantra about inflation while other central banks are changing course, while people are increasingly saying, hey, look at the evidence on the ground >> why wouldn't that -- if -- doesn't late imply that they lose control of inflation and you would think people would be selling bonds and the yield would be going upif they're behind on inflation? >> you would, joe, except you've got a central bank with a massive printing press in the basement buying 120 billion of assets every month do you really want to challenge the fed at this point when it's buying all of this
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no, you don't. so what you're seeing is other assets that the fed does not impact directly. in the past when it wasn't buying assets, when we didn't have qe, you would have seen the curve at this point move much more because the fed would only be able to control the short end of the curve with the policy but because it's buying so many assets it has a much bigger influence on the whole curve than in normal times. >> you see a lot of you -- mohamed, we see a lot of jim paulsen and i know you watch pretty closely, mohamed. remember paulsen said when we are smack dab in the middle of reopening and it becomes clear, that's when we get perhaps a 10 to 15 to whatever the selloff would be from some of these lofty levels and then maybe we head higher into the rest of the year is this the beginning of something like that, do you think? >> so i don't know whether to begin because you have to shake the market's confidence about
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the liquidity paradigm in order to get the 10 to 15% maybe we are it's very curious. i never thought we would have a call, joe, where we say that the fed may even lag the european central bank the ecb is starting to signal that it may consider tape perfecting where we are not even thinking about thinking with the fed. it's not because european growth is better, it's not. they don't have a looser fiscal policy than we do. we have a looser fiscal policy it's not that inflation is higher it's not it's not because there's more risk taking going on, it's just that the fed with this new monetary framework has gotten itself pinned into a corner and they're not sure how to exit. >> do you think that the tail is wagging the dog in terms of crypto or it's just all part of the same phenomenon we're seeing,
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the air coming out of the sails, mohamed? pop culture and business, a lot of times they merge. elon musk on snl is looking like an important moment for all kinds of reasons, tesla tied up in bitcoin would you say the tail is wagging the dog or it's just one big sort of reckoning? >> so it's certainly part of a big phenomenon i don't call it a reckoning yet, but phenomenon, which is liquidity. if you start shaking a little bit of confidence in the liquidity paradigm, you will get the across the board selling we started having it last week, by the way, and then the fed came in in almost unison they reaffirmed the transitory and everything else. we covered it. so we're just replaying in a bigger way
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crypto has a different thing going for it the elon musk tesla signal of a few weeks ago was a signal of board-based adoption by the private sector of crypto as a store of value and a method of payment and the sort of questioning that elon musk raised about crypto has shaken the notion that it will be widely adopted by the private sector. >> coinbase too was in that same sort of time frame that's below the reference price. underlying all of this, mohamed, is a multiple on the qqq or the nasdaq where a lot of these companies are just really still killing it and doing great and
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multiples are nothing like 9.99 in the leadsing tech stocks and even pandemic beneficiaries. so does that put a floor under year's qqq multiple is 22 or 23? >> it certainly puts a longer term floor but remember when liquidity goes out it is harder to distinguish itself. the noise becomes so dominant that even very firmly based companies with massive balance sh sheets, with an ability to do well in a reopened and closed economy, that is what big tech is showing us. you cannot be a good house if the market is being challenged >> this is not covid related this isn't a variant, something
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in the rest of the world that's troubling this would you say that that narrative hasn't changed, that the world is slowly getting beyond 2020? >> so the world is slowly winning the war, okay, in the sense of accelerating vaccinations, controlling infections and trying to get the impact it's the third element that's particularly risky i'm in the kingdom and people are concerned about the new variant b. 1617.2 which is spreading quickly. we can't declare a win but we are certainly winning on the other two fronts. >> mohamed el erian, thank you for the quick response to coming on see ya
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thanks becky. let's take one more look at the futures this morning if you're just waking up, we've got some numbers to run through with you the dow now indicated down 310 points as of yesterday's close the dow was up 185 points. with this open if we stay at those levels it would drag the dow into negative territory for the month. s&p and nasdaq are in negative territory for the month of may the dow has a decline of 1.5%. yesterday's close the nasdaq was down 5.9% from the record close. something to watch this morning. something to sit up and pay attention to. when we come back, website and hosting company squarespace going public via a direct listing. the company's ceo will join us to talk about business on the web. "squawk box" will be right back. s to help our family's special needs... hey, graduation selfie!
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find yours, on loopnet. welcome back to "squawk box".
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>> the price of bitcoin is tumbling as we speak 38,513 at one point down to 36,000 i think. tesla, coinbase, paypal are some names down as well coming up a little bit later, we have former chicago mayor and white house chief of staff rahm emmanuel writing an op ed on why they are going quk"etnsig aer "saw rur rhtft this thank you for calling the anderson group hannah speaking. when you're in a meeting, ashley can take a message. she's not available, but i'd be happy to take a message. and if you're stuck in court, lisa will let your clients know. thank you, mr. decker will call you back as soon as he's available. when you switch to posh, you could save up to 40% off your current service provider's rates. you can't be in two places at once, let posh answer. posh virtual receptionists.
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welcome back to "squawk box" this morning squarespace is going public today. they're making their debut in a direct listing trading under the ticker sqsp. reference price is $27 discount from march joining us is squarespace founder and founder anthony caselena congratulations on this milestone day. let's talk about your company and a little bit about this moment in the markets because there's been a lot of volatility you're seeing the stock market this morning look like it's going to open down i do want to talk about the environment, but in terms of your company, and i should say i have been a customer of squarespace for many, many years. how should investors think about what squarespace does in terms
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of comps versus like a wix which allows people to make websites versus a shopify which really has more p an ecommerce play to it speak to the landscape if you could. >> sure. it's a great day for us. we're known as i believe one of the premiere brands in our space and helps customers get online, create a website, get a domain we're known as an all in one platform specialize in design we help our customers stand out, tell their story and sell more one of the things i'm most excited about as we make this transition to go public and tell our story for the next decade and half decade is we've been invested for many years in commerce and it started with, of course, physical commerce online what we focus on right now is helping our customers transact in many ways they're selling member areas booking appointments
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booking reservations creating to go orders. so the commerce part of our story and the way that's integrated with our core platform and what we help our customers do is why we stand apart. >> anthony when you look at a white board on monday morning and look at your competition, does that mean shopify is at the top of the list? where does that put you in terms of thinking about, again, this goes to a valuation issue, a wix versus a shopify comp, if you will > >> i'd emphasize when we go to white boards we don't start with looking at our competition, we start with looking at our customers and what they need and where we see them going. our customer base is super high quality and a little bit different than what you would see in shopify where a lot of people are starting with ecommerce. i think we're somewhere in the middle there we're known for the content management and that's the front door for customers
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as we move forward in this world of multi-modal commerce, it competes with shopify, appointment booking, reservations, to go ordering, member areas compete with a wide variety of companies many of which are not even public. >> anthony, you are a profitable company. it's been different than a lot of other companies that went public your revenue year-over-year growth of 24 to 26% in terms of what you're expecting. my question to you is you look at what happened last year how much of that was a pull forward? how anxious are you in what that looks like going forward >> q1 revenue growth was around 31% and when we think about overlapping nearly a year now from when covid started, we believe covid is an accelerant of trends happening in the market we don't see people who have seen they can do business online, transact in multiple
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ways and find out that's not important. we see more and more momentum in our space and i think the trends from covid will be largely sustained. >> given the market environment, there were many ways to go public i know a couple -- there was talk about whether you do it via spac, do it via direct listing how did you come to this conclusion i'd also ask, by the way, i don't know if you saw coinbase did this yesterday, they had a direct listing and they have now actually put a convertible note into the market, now it's been a month afterwards is that something you would think about in the future? >> we chose direct listing and also we're the first new york city headquartered company to pursue a direct listing. direct listing fit for us because, you know, as you mentioned, squarespace has been a profitable company for a number of years and we don't need to raise money in this event. and so our thinking was pursue the direct listing, give people
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the option to buy if they want to buy, sell if they want to sell and, you know, we don't look at any one day in the market as being that significant. again, what's great about the direct listing is no one's suffering unnecessary delusion today. >> right anthony, we wish you lots of luck we hope you come on back and look forward to following your progress >> great speaking to you again. >> i'll be calling for technical support if i need it on the website. >> i'll be there. >> thanks, i appreciate it becky. >> thanks, andrew. when we come back, ariel investment john rogers gives us his take on market volatility and this morning'selff slo "squawk box" will be right back. with cutting-edge tech, world-class interiors, and peerless design... their only competition is each other. the incomparable mercedes-benz suvs.
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fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done. futures deteriorating in the last couple of minutes bitcoin has dropped below $40,000. clear look at u.s. consumer demand posting quarterly results. we'll bring you the highlights from target and lowe's democrats don't have to run scared on taxes anymore. that's the word from rahm emmanuel we'll ask him what it means for
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president biden's agenda if that's true. the final hour of "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin if you're just joining us, looks pretty ugly, on the dow. that's not as bad as it was a little while ago it's less than 300 points. the nasdaq is weak again technology weak. and you can see if you look quickly, bitcoin, if you haven't been checking it, following it that closely, it was 62, 63,000 less than a month ago and lately we've seen it trading down in the mid 40s. we had novogratz on. mike novogratz, galaxy digital,
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he said in his view it would hold 40. it has not as you can see it has been as low as 36,000 and change ethereum down. if you're looking for a spike in yields, the 10-year fairly well behaved about where it's been, 6.51%, becky >> thanks, joe let's get you caught up on other stories investors are talking about. target was out with quarterly results this morning the retailer nicely beating analyst profit estimates revenue coming in. >> we spoke with brian cornell earlier in the show. >> i think the confluence of a
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stronger economy, a consumer who has been vaccinated, more competent, excited about getting back to normal life, all of those things are benefitting us. we're seeing a much more optimistic consumer who is excited about goating back to the life that they haven't lived. >> it's above the roughly 20% expected. we're keeping an eye on bitcoin. as joe mentioned, it's dropped
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below the $40,000 level. currency exchanges, trading, clearing and settlements that has put a pretty big damper on things this morning down by 10.7%. andrew >> let's get straight back to the markets because this big drop in futures is accelerating. >> things are starting to go down as well as a safety trade
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so far we're not seeing that the way it's shaping up, andrew, if you look at the s&p 500 etf, we're going back perhaps to revisit last week's lows to see if that was real i've been talking about this choppy period, this pull back. until proven otherwise as like the ones that came before it this year, 386, 7%, kind of a pull back. this was a three-day event if you look at the s&p was down around 40, 50. 4.04 for the spdr. last week's low. so that's just for context a lot of folks looking in this area right under 4,000 for the s&p which is where march finished up. that april rally would be unwound at that level. the pressure point today is the nasdaq check on the leadership. the cyclical areas that have been mostly responsible for driving the market higher and supporting it in the pull backs. transports, financials and caterpillar.
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it's a real bellwether it's still clearly outperforming, still in up trends you do have this kind of dynamic in all of them in other words, looking a little fatigued perhaps you've exhausted near-term buying everything going on in the last several months is in the context of the market repricing for faster growth. we're still above last week's lows it seems as if traders are not extrapolating this it's an unopen ended decline. >> mike, stay with us. before we get to stephanie, this
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is not on the list if this were to turn into something that we call an intermediar the beginning of something, we had a lot of things that could have caused it covid related, black swan type thing. did you have "saturday night live" appearance by elon musk as one of the positive effects of what could cause or what could result in this >> no. absolutely not in the specific way that it happened, but kind of the public embrace and the mainstreaming of a speculative asset that got on the front pages, that's a piece of it. and i don't even say that's causative. mid february was the peak for a lot of that stuff. right now i think what you're seeing in the nasdaq is the same type of folks who own a lot of bitcoin, maybe had leverage in bitcoin, they're more likely to be owning a lot of the nasdaq-type stocks too that's where your reset is coming and people pulling in risk exposure across the board.
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>> people. people and coinbase and coinbase >> you can always go back and find it. always go back. let's get to stephanie link, cnbc contributor of hightower, steph, what's happening, what's causing it and what should people be doing and what are you doing? >> reporter: yeah. great to see you i think this is all about clearly monetary policy. is the fed behind the curve? it will be interesting to get the fed minutes today. it's also about inflation. is it transitory or isn't it i personally believe it's not all transitory some of it is obviously on the commodity front, and as you get through these supply chain issues, but if you look at the ways number from the gdp ro report, .7% and the jolts number and listen to what mcdonald's and chipotle, increasing wages that's on top of mind for me as
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well, and then also just add in seasonality and profit taking. remember, the s&p is up 85% from last year's lows, so i get it. i do think it's very interesting that money in money market funds is back up to $3 trillion. so there's definitely more of a defensive feel i'm not changing my strategy, joe. i believe that the growth will continue to stay strong. maybe not at the current levels but i believe all of this stimulus in place continues to lead to momentum in the economy and, therefore, you do want to have more cyclical stocks exposure maybe they take a pause, but maybe that gives you the opportunity. >> yeah. leads to positive market activity until everything hits the fan and we're totally screwed for like ten years. >> but you know what step back on the consumer side of things for half a second. that is 70% of u.s.gdp they're doing pretty well. if you look at personal consumption.
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>> no one's gone out. >> personal income >> no one's going on vacation. no one's eating out. >> my point is -- the people want to. savings rate of 27%, right if it goes back to 5%, which is the historical average, that's $2 trillion in pent-up demand. that money is going to go to places like hospitality, restaurants, leisure and that sort of thing. and yesterday master card released spending pulse data u.s. retail sales up 23.3% but importantly up 10.8% from 2019 levels, which is pretty impressive restaurant spend, believe it or not, versus 2019 levels is up. so people are starting to get out. certainly in pockets of the country. and then as we reopen more and more i think you're going to continue to see the trend. consumers super important for the economy and they seem to be doing okay. >> santoli, we always talk about you. you're experienced
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you're smart you're good at math. a couple of years ago we said what's after t, trillion i think we have to bring that back do you know? >> we have time. we have time before that. >> are you sure? >> isn't it quadrillion. >> yeah. >> what is it? we don't even blink an eye we spent 4 trillion already. what we've really got to do is spend another 2. we don't blink we don't blink when the fed's balance sheet, oh, my god, it's up to 5 trillion we don't care when it doubles from there don't you think that some day this matters >> i don't know in what respect it's going to matter those are basically abstract shuns. honestly the fed's balance sheet is just this thing that just sits off to the side and you can interpret it any way you want. now the 2 trillion you're talking about in terms of fiscal spend that might be on the table, i don't even think that's coming into the market equation very directly right now. in fact, in a few months the talk is going to be, well, we're
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not going to do another 4 trillion in 2022 that means there's fiscal drag one thing is going to moderate the growth rate. it's not going to be about more and more and more, i don't think. unless you think that that infrastructure plan as proposed is goings to get greased right through. >> no, i don't stephanie, are you comfortable, quadrillion. then it's quintillion. is mike right? >> well, it doesn't -- it matters but it matters more medium and longer term, right? it's not going to matter in the near term. our kids are going to have this problem, maybe not us. obviously it's something to watch. there's always stuff to worry about, joe the market always climbs the wall of worry. i worry when we don't worry. >> i used to rail about that -- the $800 billion shovel ready stuff. that was 800 billion i thought that -- and then when
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rates go up and you're spending a certain amount of money covering the interest payments on that, it takes away that money from everywhere else growth gets dampened and gdp growth seems -- >> maybe some day down the road. you know what, there's nothing evident in what's going on today that says this is what we're concerned about or that this is somehow directly pressuring things today. >> then we ought to really ramp it up if it's okay. >> we're 4% off a record high. >> we should make everything -- >> we really should make everything infrastructure then let's do it all while we can that's what larry somers said a couple of years ago. maybe he's right now he's going the other way stephanie, thanks. >> thank you. >> santoli -- >> yeah. >> i can't believe it. i was coming to you for some rationality. we'll see what happens. >> look elsewhere. >> coming up, call everyone you know call everyone you know and get the family gathered around the
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tv set because these are a couple of interviews that are coming up. we'll be talking to former white house chief of staff and chicago mayor rahm emanuel, one of the brothers emanuel we have them all on and ariel investments john rogers. next, purdue university mitch daniels. we'll hear what he has to say about some of this stuff he used to be a fiscal conservative here's his advice to the class of 2021. >> now take that readiness into a fearful, timid world crying for leadership and direction and boldness, where the biggest risk of all is that we stop taking risks at all er 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
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s&p and nasdaq were already in negative territory the nasdaq down by about 185 points that it's indicated down. that's because all of the big faang stocks are under quite a bit of pressure. facebook, amazon, apple and alphabet all down by 1%. remember, those stocks all closed down by more than 1% yesterday. the blood letting continues here one story, we have seen big banks down this morning. there is the lead story in the wall street journal today pointing out we've seen more money flow into the bank stocks in the first five months of this year than we've seen in entire years and for records in the past $32 billion into the financial stocks over the first part of this year. retailers, most of them indicated down this morning, too, because there's red arrows everywhere you look. target is the one bright pointed to that. target had numbers much higher comp store sales up by 22.9% includes up 18% at the stores themselves
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up 50% for the digital comps walmart with better than expected numbers amazon down by more than 1% and lowe's which also reported this morning better than expected numbers down by 2.5% best buy down by .7 of a percent. in person schooling from grade school to college is coming back across the country our next guest made that decision last fall to keep the school open. it's provided valuable pandemic era lessons. joining us is mitch daniels, the president of purdue university, the former governor of indiana great to see you this morning. thanks for being here. >> sure. >> let's talk a little bit about the message that you had for graduates this year, that is that risk taking is incredibly important and the biggest risk you think is that we stop taking risks at all that has to be tied back to the big risk you took last year by saying that you would keep in-person school open. that was a really bold move at
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the time it was counter to we were nywhere else we spoke to you back then about that decision. in hindsight in looking back, what do you take away? >> first, some relief because we had a very, very successful school year with 90 plus percent. almost all of our students who could get to campus came most of the classes they took were fully or partially in person we had to impose a lot of limitations on them, ask a lot of them and i give them the first -- the primary credit for the fact that we made it very safely and soundly to the end. so that's the starting point but i did think there was a lesson in there of general application. i think there's been reason for a long time to worry that americans are losing some of their sense, once called it the pioneer spirit, but their sense of initiative and risk taking. you look at mobility
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you look at rate of business startups you look at family formation and child bearing all down, so i think this last year furnished some object lessons. i tried to share a couple of those with the student body. >> mitch, i think it's important to point out that you didn't go into this willy-nilly. there was an incredible amount of planning and thought that you put into this and really some money that you spent to do this. i remember talking to you at the time how much did you spend how many miles of plexiglass did you put up what other precautions did you take when you made this decision >> we spent tens of millions of dollars and we did frankly everybody that we could think of that might help. we learned along the way many of the things that we did, such as most of the plexiglass didn't make anybody any safer, ditto for the cleaning of surfaces
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every night for moving dorm beds so they faced opposite directions some of these things with the benefit of data later we know probably didn't help, but at the time we thought we had to do everything we could to keep our students safe and yet honor our obligation to them not to interrupt their education. >> what measures that you took did work what measures mattered and what did you see just in terms of covid cases during the year >> aggressive testing, tracing and quarantining of those cases we did have. ultimately over 6,000 cases between students and staff more than anything, a relentless effort led really by our students to protect each other they understood, as many people elsewhere stubbornly seem to resist understanding, that young people were at essentially zero risk there are multiple risks every year greater than the risk of covid to a healthy 20 or
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22-year-old, and yet they understood that they had to comply with a lot of inconveniences and restrictions in order to protect others, their more vulnerable elders and protect the institution's ability to stay here at all. those things all worked very well an interesting situation now, becky, is that as things have become so much better, so much safer, thank goodness for the vaccine manufacturers, they've become more complicated. last year we knew we better do everything conceivable that might add any increment of safety and now it's much trickier which restrictions to moderate or let go of, in what order, and on what timing >> are you going to require vaccinations for students coming back >> we've decided on a choice model. we're doing everything we can, including making vaccination
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available through the same protect purdue system which we stood up from scratch. we don't have a medical school here, i would note, so we vaccinated -- we gave over 37,000 vaccinations already. what we've said to our community is we strongly, strongly encourage you to be vaccinated the more of us that are, the more open and normal the campus can be and there may be things that we can permit those vaccinated to do that we can't allow those who have decided not to. we did decide on a choice model. those who don't get vaccinated and prove it will be required to go through the same regular testing that we all undertook in the previous year. >> mitch, let's talk about this more broadly, what you think the lessons are that we should be taking away from this as a society. you mentioned that new business openings are down over the last
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decade or so these are not numbers that are just impacted by the pandemic. childbirth numbers are down. why do you think it's so important to take risks? >> i just suggested to our graduates that they take what i believe are the right lessons, not the wrong ones from this last year. the right lesson is that the essence of leadership, almost its very definition, is the balancing of competing priorities or interests. it's the making of tradeoffs it's the careful examination of evidence and then using it in a mature fashion to try to serve the general interests of whatever business or cause or institution you are entrusted with too often in this last year they saw, we all saw, the people in leadership positions pursue one goal to the exclusion of others, which now we're toting up the
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costs of that. and it's extraordinary and i do believe historians will look back later and say that in many, many cases people in positions of broad responsibility here abdicated that they got some -- maybe some cheap applause at the time, but they created incredible damage in terms of other important societal interests, mental health the education of children. all of the small businesses that were eradicated. so that's the message i tried to give them. they will soon be making those decisions, and when they do, they will have to use the data tools, the data and analytical tools that they got here, but they'll have to finally make choices with the broader interests in mind. >> it's a good lesson and, mitch, we'll have you back soon to talk about more of what's happening in washington, what you think with some of the packages put forth we appreciate your time and this
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message that you gave out to the graduating class this year it's good to see you andrew >> thanks, becky. before we head to a break, here's a quick look at some of the market movers with the futures right now under a lot of pleasure ta -- pressure airline stocks down in most cases off 2% kathy woods ark innovation etf so many of the big tech high flyers have suffered right now the innovation fund off 3%, close to 3.5%. up next, mike novogratz on today's bloodbath crypto after he said $40,000 was the floor for bitcoin. we've cracked that floor we'll talk about it when we return
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i think 40 should hold i think we're going to be in the 40 to 55 range, we'll consolidate and have another leg up. >> that's galaxy digital ceo mike novogratz yesterday bitcoin is below 40. i was going to say, mike novogratz joins us, mike, we don't use closing prices i don't know what it's going to -- since it trades all the time it doesn't really matter whether it is closing. i defended you
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do you still think we're near a place where bitcoin stabilizes at least give us your update. >> listen, both on the charts and it felt like we had capitulation this morning. you never know the one thing that's clear, a lot of people own crypto you had a confluence of events, combination of tax day, elon musk tweets, whatnot where you started breaking down the positivity and the price action. and now we've got a liquidation event. you know, humpty-dumpty never gets put-back together in two days when he cracks. it will take a while the market will find a bottom. 36,000 maybe, 38,000 it did feel like capitulation this morning ethereum, 2600, 2400 we're pretty close they've had big selloffs with huge volume. and it's not going to bounce right back
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it will consolidate for a while. the story hasn't gone anywhere the crypto revolution has happened these are certainly setbacks for the wallet and, you know, for the investor banks, right? people lost a lot of money and they'll dust themselves off. >> we'll see some peoplstarted tweeting because you stopped wearing the bizarre shirts and elton john glasses. i've heard the narrative that china wants to promote bitcoin to destabilize the dollar. that's a kyle bass sort of a narrative. now we're hearing china is no friend of bitcoin. that is the most recent data point that people are pointing to for a while we're seeing this weakness today what do you make of china's recent comments? >> i think china is very focused on their own central bank
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digital currency they want to have people trade with the digital mmb i don't think they're going to smash blockchain because they're a blockchain country but they want to control things so a lot of countries would rather have -- they don't mind bitcoin being used as digital gold but they don't want it used as a payment currency. that's all been a myth i think you have to watch china very carefully with their digital mmb. it's a geopolitical play the u.s. has got to goelet on t move quickly pretty soon you'll have everyone, the mid east, africa, south america, you know, being offered, you know, to transact in digital mmb, which will probably be relatively stable. mmb is pretty stable with the weakness of the dollar, people like being long mmb it's certainly a geopolitical move.
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>> hey, mike, i don't know if you saw jpmorgan out with a note that in many respects sort of at odds with your comments over the past several weeks and months now about institutions wanting to move into bitcoin they're saying in fact it's the opposite, that people are moving back into gold the big institutions are not interested in moving into bitcoin. i know it's yourbusiness to be into bitcoin and crypto, but what do you make of that report? >> it's interesting, right we are seeing more and more institutions having more and more meetings with more and more people on board. listen, we're a 400 person bank and they're a 40,000 person bank we don't talk to all of the same institution, i'm sure. i see a movement i was at two bank ceos in the last month and both of them fascinated with deep buys. how do we get in
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how do we think about it i see an inexorable move from financial institutions and tech companies into the crypto space. you know, will it all be bitcoin? will it be ethethereum i think bitcoin will preserve its lane as a store of value and i think you'll see more and more, you know, people still buying into that, but it's the rest of the ecosystem i think where you're really going to see kind of dramatic moves over the next, you know, 18 months, three years. >> we don't have to wait that long, mike we're seeing a dramatic move in the rest of the ecosystem. everything is over 20% down. we'll see. check back with you. appreciate you coming on to update us. >> all right >> wanted a quick update after comments yesterday at about 37,000 and change so we'll be watching. thanks coming up, ariel investment's john rogers on this
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morning's market volatility. stock futures down as we head to break, here's a look at the chip stocks down across the board ay tuned, you're watching "squawk box" on cnbc
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a little under an hour to the opening bell the futures pointing so much lower right now. dominic chu joins us with a look at some key movers right now dom? >> here's the reset that we're looking at i have a limited amount of time, but here are some of the highlights in the market right now as we see them currently if you take a look at the futures picture, we are trading just off the worst levels of the session right now. the s&p is implied lower by 45 points the dow jones roughly 324. the one i want to call your attention to is the level 4075 that is the 50 day average for the mini futures keep an eye on that particular level. it's been an area of support over the course of the near term we'll see if that sticks around. look at large internet-related companies like facebook, amazon, alphabet, paypal this etf tracks it cloud computing as well.
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this is a year to date chart each of the industry parts in the tech trade slowing momentum in the tech scene that are giving some investors pause as well. of course we are keeping a close eye on the individual type stories that are playing out especially when it comes to retail maybe some slowing momentum. lowe's and tjx showing weakness. all three showing better than expected results and some good trends we'll see if the retail trade plays out as well. we mentioned bitcoin before. joe, we talked about it with regard to levels, technical indicators and things like that. let's put up ethereum as well. 1100% return over the course of the last year. massive move but if you take a look at the prices right now, we have now fallen by roughly 40% from the record highs that we
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saw depending on what measure you look at. by the way, for those curious about those particular levels, we're kind of looking now below at some of the 50-day average prices which are about $100 below currently where we are, joe. keep an eye on that. i'll send things back over. >> we need to recalibrate. that's a correction in crypto world, i think i think 80% is an actual bear market just an average correction, i think we do 40 isn't that -- we have to recalibrate. >> that seems about -- you have to set those expectations in the upper and lower bands. >> 10% is the normal correction in the stock market. 20% ushers in a bear market. i think we need a multiple of both of those. >> it's not just 20/40, you think it's more like 40/80. >> 40/80 run-of-the-mill average correction that is kind of what novogratz said. >> thanks, dom >> you've got it. inflation and fears over tax hikes weighing on investors
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minds. rahm emanuel, former mayor of chicago and famous congressman congressman, mayor -- if i say mayor, they think we've got pete on mayor pete he stole that name, rahm it's good to see you your op ed, i think we're hearing a lot of carping from republicans. you say they are quiet this time around they have said on this show that anything that reverses any of the trump tax cuts is a non-starter for them so what do you mean that the gop has gone quiet i think that's wishful thinking for you. >> well, first of all, if you look at past historical reference points, today's criticism is muted compared to that second of all, it's a basic observation that that tax policy that's cap 250urd in the 2017 bill runs contrast to the political coalition that now dominates the republican party and they're quite cognizant if you look at all of the polling,
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well over 6% of the republicans are self-identified republicans support the tax bill, especially those who make $50,000 or less you're not taking into consideration that the coalition that elected ragan no longer dominates the republican party there is a trump coalition, it is different and that's why that -- the tax policy, while republicans say they oppose reversing it, they are not standing on top of their soap boxes like they have historically used to push against democrats. it is popular with fundamentally self-identified republican voters. >> sorry to keep talking over you. >> don't worry welcome to the emanuel family dinner table. >> arie represents me. >> nobody should have that much pain in their life. >> he says he by far has eclipsed you in success and -- i said that to him and he did not push back on that, that he is the most successful -- >> that's exactly what his
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medication tells him to say. >> so you're watching what's happening in the market today. there are those that think that raising taxes is troubling to investors, troubling to people that want a strong economy, troubling to people that want the private sector to be as private as possible. does it give you pause to see what's happening >> i think you start -- take a step back, which is do you want to continue to have a 21st century economy that's based on a 20th century foundation or do you want it to move at 21st century speed? there's no doubt when it comes to our competitiveness, lack of investment in roads, rails and runways is inhibiting growth second, over 80% of the jobs require minimum of 2 years of post high school education if you invest in america and americans, people will be
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successful when you have major corporations not paying taxes and you're talking about taking the rate on the top end up to 39% historically, where it was under president clinton when you had the greatest job creation in american history post world war ii, my point is in the scheme of things, presidents have to weigh all of that, investing in things that we have starved of investment, educational gains by americans post high school, also gains in our broadband and advancement, everybody gains together you have to have an economy given what's happened in the last 20 years where everybody moves together, not just 1/3 of americans based on college education. that, if we don't do that, you're going to continue to get not only economic disruption, you'll continue to get economic disruption i do believe paying for it rather that be adding on debt is good economic policy those who have made the most and have the most to gain by continued economic gain should
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continue to contribute to the overall well-being. >> did you really say a good crisis is -- anyway, this is the perfect time -- >> here's what i said. never allow a good crisis to go to waste it's an opportunity to do the big things impossible possible >> this is big infrastructure is everything in your article you faulk about fair, fair, fair, fair, fairness it's never defined in a lot of states like new jersey or new york, people that i wouldn't consider wealthy are well above 50% so they're basically working -- they're working past july 4th to pay their tab to the government. do you consider raising taxes on them to be more fair what is fairness for someone like that that -- how long should they have to work till have paid their tab to the government and can keep it >> well, first of all, let's take a step back
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i ask you is it fair that 500 companies pay zero in federal taxes? is it fair -- >> wait a second wait a second. wait a second. second, do you use new jersey. was it fair then to cap the s.a.l.t. which was a tax increase on the very voter you just talked about in new jersey? is that fair in your view? then, third, when you go overseas and you look at the investments china's making in the airport, rail system, runways, roads, you come back to the you states, you marvel at the success of the infrastructure system that moves goods and services and makes it much more productive and competitive. so to your new jersey question, 2017 tax bill ended up being a huge tax increase. is that fair >> we need -- >> another network -- >> your psy sentences lens seems
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to be overwhelming. >> i'm definitely not silent we've got to have you come back. i know another network owns you so we had to get special dispensation. >> are you okay? are they upsetting you >> i want you to come back are you going to be able to come back and define fairness >> sure. >> i still don't know. >> fairness means taxing ari and me we should pay -- i'm serious, and you. we should pay more for the overall well-being and competitiveness of the american system we are lucky to be americans we have great success. if you have people, major corporations that are making -- paying zero income taxes, there's a real uncompetitiveness and unfairness make sure they're building an america that their children can inherit and succeed and compete and win. >> right as far as the corporations, there's laws that need to be
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changed because they use loss carry forward. it's a -- it's a convenient -- >> open my mic up. >> becky wants to talk becky wants to talk to you are you going to do a crying sound for rahm, becky? >> no, i was going to do it for you because he may be owned by another network but you just got owned. wah, wah. >> i don't think that does it. i don't think that does it >> look right here in here you see that tear for you? that's that tear right there >> wah wah. >> you need to define fairness is that working through august or how long do you have to work? >> somebody that talks more than you. >> your mistake -- look, i am pro growth and a number on a tax page is not a growth strategy. a growth strategy means investing in research and development, which is exactly what the biden plan calls for. investing in americans so everybody, not just citizens, everybody has a competitive advantage to the future.
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investing in our roads, rails, runway, and our broadband, make sure that all communities, not just those in urban centers can compete and win. when we do that, all of us will benefit. if you look at the way major companies are buying stocks, doing major stock buy backs, it's an indication they don't think the return that stock buyback does they're making a decision today, on the market, using stock buybacks, to run up their stock, because there isn't a place to create the type of investment opportunity, because there isn't the demand there and my view is, my view is we should invest -- >> that's not why. >> and we should invest in america, and president biden, and i would say this, education planning, four years of education to every student in america, when did investing in education mean that you're not creating, for america, and we know today, everybody knows this, a high school degree, worked in the industrial age >> and with any of this -- >> and it is -- >> when you talk about
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infrastructure, you're talking about the infrastructure that republicans are for, you don't talk about the broad new definition that is using a crisis to get everything that democrats have wanted for the past 50 years. >> you can sit down, and listen, you sit down, and you bring your ideas, look, when eisenhower in the late '50s defined the interstate highway system, and somebody said broadband, you would have laughed him out of the position, today, basic infrastructure is the roads, is the rails, is the runways, and it is broadband. in the same way, back when teddy roosevelt was president, that he - >> we'll get to -- >> they have giving you broadband and universal child care and free four-year child and $3 trillion new green deal. >> here's the difference >> in chicago, we created universal kindergarten for every child and universal pre-k for every 4-year-old and we also then created the
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first, the first city to create free community college if you earned a "b" in high school, those four additional years made sure that everybody had a chance to compete and win and that's what i'm for doing and i'm also for those who have given most, most is demanded, and i believe those of us who are successful make sure when you walk through the door of opportunity, due grab the door handle and shut it, you grab a hand and pull them through and that's exactly what the educational plan, the research and development plan, and the infrastructure plan worked and you have many different ways of investing in america and americans and that's exactly what the biden plan calls for and if you marvel at what you so see in china and you want to look at it, come back home and do a comparative analysis. >> if the top 10% pay 71%, what to you is fair give me a number that's all i was asking for was a number if the top 10% pay 71%, what's fair >> let's go through this the fundamental outlines of
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president biden's plan i support. i do believe and in fact, the chamber of commerce when they were designing the tax bill of 2017, came out for 25% trump decided it was 21% you could go to 25 i believe 28 is the right number. >> i'm back to individuals you're back to rpgs cos again. i'm talking to individuals you keep going back because you know there there's -- asking corporation with the buyback, that's what plays to your base, but just talk about basic fairness for the top 10% of people >> i was getting there >> i was getting there until you decided that this was a melt of filibuster >> so what i have said to you was -- >> well, i have learned from the best. >> on the individual rate, i too believe, taking it back to where president clinton and president obama had it, 36%, the greatest economic expansion and the greatest jobs creation and that would not change economic decisions. and i also believe that the fundamental core, yes,
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corporations, since the supreme court decided corporations are citizen, i'mdescribing them in the tax discussion as what rate, corporations don't pay their fair share, when major corporations are paying zero, that is not being part of the american economic system and the american community in the same rate, i believe individuals who are very successful, 39.6% is not going to change the way you live your lives, but also, it's going to achange fundamentally if you make the right investments the way other people can also go about their lives and their kids can have the same competitive advantage that the emanuel children have. >> wow, we went over, i think we may have had to kill another interview, rahm -- >> i take points for that, that's your choice if you wouldn't fill buster. >> we'll go back and count the words per person >> very good, rahm, i am not going to cry about having you back, i don't think i want you
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back. >> this tear is for you. >> i got a exact lens in maybe that was it. >> have a good day >> all right to one of the lesser successful emanuel brothers, ang drew. >> i love that i got to sip my coffee i didn't have to say a word. we'll talk about it. let's talk to jim cramer who is watching us and watching the markets and trying to make heads or tails of it and obviously looking a little ugly if not a lot ugly right now, what do you think? >> look, we've had a good run. i don't think it's that devastate because we tend to have some pretty good times right before memorial day, we have to get through this period, i want to distinguish between let's say the nasdaq 2,000 portion of the market and the s&p portion of the market. if you remember in the month of april 2000, we had this incredible switch out of speculative into the coca-colas, and the mercks, so i mean i'm looking for that
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and also what stephane talked about which is the industrials and we want to somehow extrapolate faang to that. it's just an okay correlation. >> are you buying, jim, do you buy, is this a dip >> i think at the end of the day buy. look, i'm not going to be chasing, to buy ethereum's decline. high quality stocks that come down, like a raytheon, that i had on last night. doing incredibly well. buying back stock. boosting the dividend. fantastic work has nothing at all to do with what we talk about and a real american company. and happens to be the largest industrial in the country. so i think the industrials are good. >> do you think there's this correlated, by the way, with crypto, especially what we're seeing in nasdaq. >> i do. i think the crypto, the musk trade, musk and cathie wood are the two most powerful people in what i regard and wall street bets as what i regard the extraneous part of the market is the real companies are doing quite well, with the exception of the fact that they have not
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been able to deal with the shortage of help, which i think is the last one. if you look at the commodity number, that started rolling over last week and i think that mohamed is very, very good, but if you look at any of the commodities, you have to believe they're rolling over and i have to say it isn't transitory, and i'm not that upset. >> jim cramer, we appreciate it. i should mention now bitcoin is at 35,000. i know some people are crying keurthat, joe, and becky ma se you join us tomorrow, "squawk on the street" begins right after this break
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good wednesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber some pronounced weakness in futures this morning, the focus on tech names and crypto, bitcoin down 24% and ethereum down 38%, as the chinese crack down on cryptocurrencies target and lowe's with blowouts as well. the road map begins with a sell-off tracks on track for a third negative day as investors await the fed minutes this afternoon >> plus, china as carl just said, a

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