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, issues a crypto warning

and bitcoin, well, it is tanking, below 37,000, that is the lowest level since february 3rd. shop till you drop target sales jfrmed 23% as exclusive brands and curbside pickup brought shoppers back to the store. lowe's currently delivering. we'll keep an eye on both those stocks carl >> guys, a lot to get to, jim, heard you talking to andrew a moment ago, about not just crypto this morning, but also tesla, and coinbase, and commodities and we talked last week about the idea that some of these commodities, especially lumber, were going to correct. it looks like this is the eighth day down >> look, it's happening. the transitory period of inflation that jay powell talked about, it is proving transitory. the only part that is not, is freight. and that's because there is a shortage, and there is a demographic issue. a cutdown in immigration, the number of people having kids in the country, and i know that's far range, but that's where the shortage is, and i don't think

jay powell, david, this is just my own view, but you can disagree, jay powell can't create humans. [ laughter ] >> well, i mean he could have created a few of his own, i guess. his children. >> but we're not going there >> no. >> but i'm just saying, the last bastian of inflation is getting goods from here to there, and that is really causing the supply chain problem becky asked a great question to brian cornell about the ships coming in, with all the goods in l.a., and brian said, look, he doesn't have a problem, he's got scale. >> you're talking about this, but i'm looking at this, i mean 34%. i'm looking at the significant fall in the cryptocurrency >> elon musk elon musk declared a top >> ether down -- >> it's the chinese, jim it's the chinese. >> musk and china. >> they tightened the restrictions banned financial institutions,

related to cryptocurrency. it's a fresh crackdown they want to create their own digital currency we believe and by the way it will only help their surveillance of everything that goes on in chinese society, because they'll know exactly who is spending what at any moment, one would expect not to mention they have this idea of perhaps trying to replace the dollar sometime with their own chinese digital currency. >> sure. and they had currency controls carl, i think we can relate obviously with what's going on with bitcoin, with the sell-off in equity, but - >> of course we, can right >> there's two kinds of equities >> this is related. >> i had greg hayes on last night. >> the youngsters, jim, are trading crypto - >> they'll get burned out. >> they're taking crypto and trading stocks >> and to them it's the same thing. >> yes, but what does that have to do with the price to earnings ratio of bristol myers which is held very well, why? because it is a real company even though it missed the

quarter. david hayes comes on "mad money" and tells us a bountiful story do you think that stock will get hurt do you think take two, after the 496 best reports this year, didn't report a great number, and can bounce carl, i am trying to separate the wood stock, elon musk, prc-controlled stocks, from the rest of the market, because we're going to lose, and david remembers this, we're going to lose the essence of what happened in april, 2000, when there was a radical shift away from things that turned out to have very little worth, and in favor of coca-cola, david, carl, it may be the moment in hand and if lumber rolls over every day, and i know it's still too high, and we blasted housing yesterday because of the housing numbers, what does jay powell have to do other than sit back and laugh? >> yeah, it's a great point, jim. lumber has gone from almost 1700 to below 1100 and it was down again yesterday.

i mean i see how you're trying to separate the market activity into various silos but there is an ongoing discussion about high prices, slowing down the recovery, purchase apps on mortgages, jim, up 2.5 year on year and no longer just a supply issue but a price issue as well. >> and i think people want to wait i think people have been scared a lit bit and they want to wait. i know that we can buy a house and they have dummy appliances in it waiting for real appliances that's kind of a turnoff i do think there is a general sense that things can come down if you're just a little bit patient, and that's okay, the consumer, david, is not brain dead, the consumer says look, let's wait a little. >> sure. >> it may be over, the pandemic may be winding down. >> yes. >> so a lot of the behavior that we thought, like chasing a home, may be ill-fated. >> it may be tempered a bit. >> and why at lowe's, lowe's had a great number, marvin ellison, a great number, home depot had a great number and people decide

that trade is over because the month of may is weaker than -- >> by the way, on that point yesterday at this time we were talking about walmart, a very strong number. and we were talking about -- >> those are not housing plays >> target and home depot are not housing plays. >> but they rolled over is my point. >> walmart did not roll over. >> walmart finished near its high >> thank you for clarifying that macy's did and i think -- >> macy's was up a dollar the day before but that had some home and at&t was hit >> yes, we're going to talk a bit more about that. >> we could continue on. >> look at target. target was up 7. now up 3 but brian cornell, listening to that interview, why should i sell that? and some of these stock, costco down a percent give me a break. costco is up 40 straight points. home depot was up aggressively ahead of this. but one comment on the whole home depot call which is the month of may wasn't as strong but you know, what i have to tell you, brian cornell said the month of may was good, he didn't

say it pointblank, he talked about mother's day, but he didn't dance around it, carl, ryan cornell is doing, he has a great situation going, and a lot of it is self-help, it's things he has done, carl, he's done a magnificent job. >> yes, the difference with target guys was instore traffic. instore comps up 18. which is a multiple of what walmart was able to do people are really coming into the store and to jim's point cornell talked about not having that many concerns about the labor shortage or the supply chain weakness and take a listen >> the second largest net importer of the united states, and if you look at our performance in the first quarter, and look at some of the financial metrics, we had a $2 billion of additional inventory to our system. so we're watching it carefully, but we're maneuvering through. so challenges and i feel really good about our inventory positions, in the improvement we're seeing in stocks and that's going to certainly benefit us for months and months to come.

>> not just traffic, jim, a basket of five, they see full year margins above seven and printing six handles in 2019, that's pretty amazing. >> the brilliance of bringing in cvs, which of course had unbelievable vaccine numbers, that were, if you look at that stock, that was incredible, the other thing that brian does, doesn't talk about, because he is a very humble person, he built stores in areas that other chains thought were dormant, were moribund, and those are stores in areas where there are people of color. >> underserved areas >> yes. >> and they do very well. >> and that's because he looked at two income families that work incredibly hard and pronounced them to be the essence of america and i've got to tell you, if people thought like him, we would have a stronger company. >> yes, as you can seerk the three-year performance has been quite strong >> closely correlated with, identifying markets that have been written off by other people. >> without a doubt

and the pivot to digital >> the shipped >> do you use shipt. >> i had rice cakes delivered to me >> you could eat styrofoam in your amazon box. >> ketchup is fattening. >> okay, we got to come back to crypto >> i'll talk about it all day if you want to. >> i want you to talk a little bit more about it, because i think when you look at, listen, we all know of course how much these have gone up, but there is great volatility, but today is a significant potential day here, and when you see bitcoin down -- >> is that a reversal of the four-day period. >> i wonder how much is creeping in, how much is creeping into the broader market. >> doesn't that make the market good >> i don't know, jim maybe it does. maybe a brief sell-offrelated to that i don't know how many of the same cohort don't see a difference between trading crypto and trading stocks. i know there are a young group

of people, many of them -- >> do they buy slivers but don't you find it interesting there is one guy who represent, well, two people who represent, on media, there's a fella by the name of palm palm i like palm. he put me in bitcoin in '12. and then novogratz. >> and elon musk. >> does he come on air and talk about it >>, no but he goes on twitter and maybe ill-advised. >> carl, i'm saying -- >> it kind of wrapped up - >> mike wilson comes on all the time >> what about reader >> why would they want to talk about it. >> that's what i mean. >> completely legitimate people that don't come on and say look, i'm taking ethereum to -- >> the chinese have decided, they think it is very important, bought all of their financial industry associations are not allowing banks and online payment firms to offer clients any services >> and do you think they would buck the prc - >> no, i don't. >> and there ra a lot of white

collar executions -- >> 44% fallen, something like that that even got a wow out of jim, carl >> yes >> doesn't that look like some of the stocks from the year 2000 >> yes, it does. >> it looks like cmgi. >> what happened to dave weatherall. >> probably made a billion >> meanwhile, guys, technicians are trying to look at the momentum picture, jim, jpmorgan is out this morning, they say the picture on bitcoin continues to deteriorate, continue retrenchment by institution, too early characterize as oversold, for that momentum signal, it would require a decline down to 26 k, and that would get some people's attention >> look, i want dave kostin to come on and say we think that g-sam says this is the level and fidelity to come on and say, we like it here, it's worth a lot

>> what level? >> that's my point, david. >> what kind of deal does it have i sold my ethereum and i sold bitcoin and what did i get i purchased a farm >> does gold have a yield for you? >> gold -- >> i have to pay for life insurance. >> insurance. >> i have a policy the whole term level term. you have to buy that stuff, 30-year term. >> and become a farmer and raise the crops and that is a great way to create yield. >> and i've seen cows, cows belch methane, so i may have to bring ethan brown on from -- you know who is doing well, carl do not, do not overlook beyond meat here. >> how did you get from bitcoin to beyond meat >> because i want to get beef corn for cows but i'm worried about the belching methane so i would rather have plant-based food. >> which goes back to the fact that you had ethereum which you actually sold and bought a farm.

>> and i don't like taking a beating. i don't like to be sunny - >> you can be on the tractor. >> i have a great tractor. i have a backhoe, too. >> on the tractor and relaxing on the pond in the row boat. >> i can't find a row boat there are no row boats in the country. >> there are people who did cash out and they should be on tv not just the people who -- >> as much as i like them, because they're cool they dress well. pom? what is that >> guys, we will keep our eyes on bitcoin, not too far away from a two-handle here as it approaches $30,000 we're going to watch, that long with futures that are weak and when we come back, we will talk to jim and david about at&t is jim going to add at&t to the wall of shaim? in a minute.

jim has been ramping up his criticism on at&t this morning on twitter, debating putting the tlt people on the waum of shame, they have earned it. you have to work at it to get on the wall it sounds like you have made up your mind. >> i'm a kind man. and i do feel, and putting these out, i want to see if other people feel the same and i went out to dinner maskless and people came up to me and

congratulated me for speaking truth to power actually one person said truth to power and i am always like, what does this say, some sort of revolution that i'm starting but david, i'm looking at you and i'm asking for your advice, maybe at a certain point, i am too tough, to keep me from pausing -- >> i know how you feel and i understand, it you feel like you were misled in part about the dividendwhich i know made you very angry. >> remember, i had to, after my surgery, i was debating resizing this bironi arond i would never resize a dividend, cutting a dividend. >> and over a period of time years ago, you see potentially a secular decline in your business certainly in terms of growth rate wireless fairly competitive everybody's got their group of, you know, you're changing, there aren't that many consumer who are going to go with your competitors, and you're thinking

how do i, how do i grab a hold of some growth, and you think, well, i don't know, maybe i need to move into video more aggressively, so you buy direct tv, and then you continue to have that concern, i'm just saying here, now we all question the direct deal immediately, and i remember - >> a critic. >> i was because it seemed all it was about was securing cash flow to secure the dividend. then you do the warner deal. and it's the same thing. well, vertical integration is going to lead to potentially better growth and also going to lead to even less churn amongst our wireless base, there's going to be some confluence of positive things that occur and you pay $107 billion, including debt for warner and of course you sit there for two years waiting to close the deal because the d.o.j. unexpectedly comes after you. >> 2018. >> now you're john stankey less than a year into your deal, into your tenure as ceo, you see direct, it's a wasting asset, and you say you know what, let's get somebody else to manage, it

we'll still, maybe one day it can merge with dish and create some value but we're not going to do that deal, we won't deal with charlie, let somebody else and with the shareholders, they will have an ability to participate should things come back and you move and you say how much i love warner and hbo, there is so much cheap capital and so much technological evolution in my core business of wireless and 5g and what's going to happen, i need capital, i don't have enough. i just spent 30 billion on that auction, and what am i going to do i can't fund the direct to consumer business the way i need to without taking from the other business and losing potentially my competitive position and so you do what you have to do by doing this, giving your shareholders an opportunity to participate in the potential success of this business, outside of your orbit and obviously, you give yourself a new capital structure, but you got to cut the dividend. >> i agree with all of that. what i don't agree is telling people you don't need to cut the dividend, the synergy is terrific, things are going

great, we just had our first quarter of wireless, you got to stick with this, hbo max, i mean stankey did everything but tell us he really likes the mayor of easttown, i mean honesty, that's why you come back to that time-old ritual, you've just been had had he not come on air and had he just said you know still have to pay a lot for spectrum, for tower, but no, instead, you court the wall of shame, because what you do is say listen, we are going to have, as he said, how are we going to get that yield to be smaller? there are two ways to get a yield to be smaller. one is to have the stock go up and the second is to right-size the dividend by putting in a release, 40 or 43% cash flow, which you had to break out the hp-12-c to figure it out it was brilliant it was a brilliant move. because it fooled everybody. >> for a brief time. and not you. >> no, but that's because i'm -- >> and we tried to explain it to

people listen, there's no doubt that they lost a lot of money overall. we can see what happens but on the time-warner deal 7 billion in and i don't know how much out. >> the old-timer's committee is now going to put them on the wall of shame. >> we'll see >> carl, i don't know now. i'm not sure if he is doing wall of shame or not. >> dave, you made a very compelling statement that he didn't know what he was doing as opposed to trying to hurt, right, carl? >> it does sound jim, it sounds like you're asking people to tell you why you shouldn't do it >> that is - >> you certainly raised a -- >> let's say stevenson comes on. >> right, let's say he comes on and he says he wants to give back, what, the a million that he took because he feels badly what about that? hey, stumpf gave back some money. >> he was asked to >> well, carl -- >> speaking of which guys, we have an interesting call on

wells fargo today, as some 6, some of the wind comes out of financial's sales. and the futures, opening bell in a few minutes. 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. hold on, i think she's trying to give us a side-eye... because she can't turn her head! (laugh) get help with expenses health insurance doesn't cover. get to know us at aflac.com

to make progress, we must keep taking steps forward. we believe the future of energy is lower carbon. and to get there, the world needs to reduce global emissions. at chevron, we're taking action. tying our executives' pay to lowering the carbon emissions intensity of our operations. it's tempting to see how far we've come.

but it's only human... to know how far we have to go. month to date, the dow is up about 185 points we're clearly going to lose that at the open. as we keep our eyes, pinned on bitcoin today, losses now approaching 28%. just above, just below 32 k. opening bell in a few moments. don't gonyer awhe.

the pursuit is on.

the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursu outperfor. the investment management business of prudential.

let's gets to a mad dash, and opening bell about, two and a half minutes away. what do you want to focus on >> a great call, in terms of salesforce, they decided it was too expensive, there was a hold, and now the stock has come down

pretty severely and they go to a buy, this is what i call excellent wall street research, they basically said look, this one is too high and it has come down, believe it or not cheapest on earnings, not just sales, and they talk about how mark benioff is a tremendous acquirer of properties and he did ta blow and real soft and demand ware and one of the untold stories that slack business is accelerating >> we forget the stock suffered since the slack announcement >> and i thought it was interesting that slack has gotten better during this period so mark, who is in hawaii by the way, aloha, to the ohana - >> yes. >> but maybe this one is going to prove to be like the other acquisitions and i think salesforce, which the charitable trust has owned forever, which may be the paradigm of what you're looking for, the cloud stock that has gone all the way up and all the way down and valued on earnings, not sales

and that's a rarity, the wood stock stocks >> and i think it was august, when they reported the blowout numbers and the stock went up 25% a day? >> yes >> and then mark's company is integral to what people are doing in order to be able to do better by the way, they were instrumental in at&t, the at&t, that close synergy with internet, and time-warner, and it turned out that remember, a lot of the things that stephenson, one of the things that was sold to us, the idea, they know more about the customer, they actually did know more about the customer, but in the end, david, it was towers, it was the need to be able to have spectrum. >> yes and the need, capital intensity, the wireless business trumps so to speak what they could do or the direct to consumer is incredibly expensive. back to your point they did talk, direct tv is when they talked about that, that ability to sort of deliver advertising, and things like

that >> ethereum and with bitcoin, direct tv can't work the satellites, so you can't -- they have to chop down a tree. >> chop down a tree. >> carl? >> guy, let's get the opening bell, at the big board today, celebrating a direct listing, it is web site hosting company squarespace at the nasdaq, jim, squarespace on "squawk" earlier this morning, 40 million "a" shares, sqsp is going to be the ticker what do we think about it. >> i use wicks for my restaurants, which is an incredible bargain, which is really fantastic, andrew sorkin was talking this morning about how he likes this company, this is the kind of, i would say this is kind of precisely the company you wouldn't buy right now, terrible, these are the overvalued stock, but maybe today's different, maybe this is direct listing that work, but in terms of what people should be

buying right here, it's probably the antithesis, david, i say that because the ability to be able to design a web site is something that you can already do with wicks, in a very inexpensive fashion, so do we really need these guys right now? no and no more than we desperately need oatly which can am -- which is coming our way. and this is where the bankers say, let's jack it down their throat, let's get this deal done, the quarter is coming. >> and speaking of direct listing, coin base was a directt >> how is that doing >> not well. coin base, as you might expect - >> crypto. >> a significant decline not much on our realtime exchange it is right here >> this day feels more like a washout day, crescendo day, everybody is really panicked david, the youth buying crypto right now, they are -- >> maybe they're getting a life

lesson. >> yes, they are >> carl, there's a large cohort out there that trades these crypto, the same way you would trade stocks and trade them in, well, they're looking at their accounts this morning, i guess, carl, and perhaps they're getting a bit worried but who know, maybe they've been at it for a while and still make money. >> people trade sneakers - >> coin base of course, i think the reference prois was around 250. clearly below that today, 210, and there are lots of report, guys, about difficulties at the company trying to keep up with demand some screen shots being shared of people unable to access the site and jim, that comes on top of the convertible which is 1.2 billion. we will talk about that on a normal day. >> i was hoping that these guys would handle themselves a little better it doesn't look like it. i look at the robinhood trade. that could really be, if robinhood comes public, carl, we're going to be wishing it is

robinhood men in tights not robinhood with vlad tenev. >> the s&p down 1.3% and a lot involved with the significant fall in crypto what do you look to buy? >> walmart reported terrific numbers. university, we've got search upgrades of price targets and look at a walmart. i got to tell you, when you go back and forth with walmart, what you discover this has nothing to do with the opening trade, i mean the opening versus closing trade where some people feel like, that just went into housing, when you go to wall mart, david, they actually have product. a lot of places are out of product. walmart's well stocked walmart stores are clean walmart stores are better than they've been in a long time. and they do not have this housing component. so david, i think that they're good now, carl, david's never been to -- wouldn't know the difference between a walmart and a k-mart and k-mart by the way owned by eddie. >> i'm aware. >> eddie was like cher

>> eddie, of course. >> and you can go back to these stocks and take a hard look at them and you can go back to health care, they have nothing to do with these kinds of trades, but you really got to steer clear on what i regard as the woodstock trade because those wro were stocks that she's buying these things all the way down, that's tremendous, as cathie wood, tremendous lack of discipline, tremendous amount of conviction and i think what you have to do is fall back on stories that are really good that have moved up a lot that could difficult. say there is a catalyst, i mean that is kind of interesting. >> i was going to ask you about that i was going to ask you about financials, jim. because ubs does cut wells to neutral today, they go to 47, no longer trading at a discount to peers, it's up, more than double since october, and earlier in the week, we did see firms like value ax try to trim their morgan stanley and their citi, are they too early on that front? >> i think that these are a good place to be, because they can raise their dividend, they can

buy back stock, there's actionable catalyst. you can let them come in could bank of america be a 39? sure could citi which is below tangible book value go to 70 yes. and well, charlie sharp, he has not said a thing about how he is doing but the fact that could be a bank that would be afforded great latitude to be able to return capital and you have something to hang your hat on. but i want to go back to the stocks that we just had earnings >> yes. >> and we have a lot to look at and we can decide the j&j number was pretty good. buy some j&j very positive note today about the new migraine drug. the chief spokesperson for the american migraine foundation, i can tell you, i took it this morning and it's damn, you know, it's darn good what's with the arm? >> well, i'll stop i got tendinitis in my elbow >> i got something for that, too. >> i got something in my bag of

tricks >> target sup 3, is up 3%. >> that's not a home trade. >> no, something else that you term very strong earnings? >> yes brian cornell has done things that are just remarkable let's give a guy, some of the ceos are doing better than they realize in terms of just being able to recognize what the people really want and one of the things that target has done and i'm going to talk about and they don't talk about enough, their private label, like costco is often superior to the brand, and cat and jack, i love their private label, david, their private label is better than kohl's private label. >> private label at target, jim, was up 36. 36, private label. increase, at tgt that's remarkable. we haven't really touched on lowe's, but comps up 24, better than expected, but the first time since the pandemic, they comped lower than home depot. >> and i thought that they would

comp higher and i think marvin nelson is doing a great job and i think at some point that stock will settle and i didn't think that home depot was that bad, and the 30%, was disappointing, it was may, obviously gardening month but i'm not giving up on lowe's and home depot. it has a lot of green, obviously but they didn't say what you wanted i don't know, david, when you go into target, target's very funny, you know, my daughter bought a shirt that said - >> funny as in ha ha. >> yes, she got a shirt that said i graduated from kale instead of - >> yes, right. >> well, that's like when i spoke to martha stewart, and she said i didn't go to yale, i went to jail. >> j-a-l-e >> all right i want to get back to certainly one of the key topics we've been following. >> you're not going back to -- >> i'm going back to at&t. >> you're going back to that >> david, the yield has grown so

dramatically, i get you. >> i'm changing the subject a bit. and the question becomes, when you're going to have potentially three key platforms, namely disney, of course, netflix, which we'll get to in a moment, and -- >> disney? -- >> disney plus >> and then the new combination that a little more than a year from from now perhaps will be in existence of warner media and discovery, you got three enormous potential platforms, right? but what about some of the other streamers out there? we put apple tv up, jim, for example, apple has been in the business since november of '19, a couple of fun shows, i love ted lasso, a lot of people did, a lot of people enjoy the the morning show but they've got nothing. what are they? that is the question and what will they be? because at some point, if you are apple, or even amazon, and you really want to compete here, and it's important to you, and apple i does it i guess to support the sale of the devices in some way, that is viewed as a

positive, despite the fact that they often just sell themselves, you are either in or not and apple -- >> come on. >> have you ever heard of a moving target? >> all of the work i've done through the year, apple talks to cbs, years ago before they got back together and talked to jeff, from time-warner and eddie q, would get these meetings and then bring tim cook and he's like, what am i doing here no interest. discovery, apple talked to or at least there was an outreach and then again, kind same story of tim cook comes to dinner, and with malone and zaslav and they're like well, what are we here to talk about they never pulled the trigger. never. >> david - >> never, ever and they probably won't. but my question is to you, okay, look at somebody who supports apple but this is consuming some capital. it is taking up space? what's the plan? >> the plan is to develop over time the best product possible >> you know how long it would take for them, it could take a very long time, despite all of the money they have to develop

that kind of library of content. >> buy mgm >> no. >> what are you saying do. >> do you buy viacom what do you do if you're apple or continue to move along or do your shareholders say why bother >> look, david, this morning, barclay's says the service revenue stream is decelerating you have an app store where they generate this content. you don't have to do anything. just like youtube. you don't have to do anything. >> and what is apple trying to be >> it is what they wanted to be over time. they don't feel the pressure that so many of the mobiles feel. >> and i think you're right. but i do wonder, given that we are now in the end stage of consolidation in terms of the creation of these direct to consumer platforms, and they are going to be what tv is all about, for the future, and the present, do you run out of your ability to create -- to actually create a robust offering >> a modern day university

artists. >> and then amazon, they have to support prime, obviously, again, both of these companies are awash in cash, there will be an anti-trust question to some extent but does amazon consider, well, is it time to buy, not just mgm but viacom or do something else like this and i do hear that if viacom were to be presented with an actual possibility of something leading to a deal, they will listen it's not as though their shareholders are not interested in listening it doesn't mean that anything is going to happen or anything is happening right now but it's interesting. look at what they're up against. jeffries this morning on netflix, $620 price target they initiate coverage despite popular third party content, and achieving economies of scale, ncetflix is now in a position to have original content.

and forcing consumers to choose between countless direct to consumer offerings while net blix puts in $17 billion. >> nobody is paying for the shows -- >> they're not a company that is rushed into anything >> but maybe you got to rush sometimes? >> oh, david, carl, david wants one of these like, sun, where do they go, mobile, sun valley? i think it's worth pointing out. >> i'm not going to play sun valley >> carl, we can sit here and debate that they have to go buy one of these companies you know what, they're not going to >> they pass on everything. >> but what they think is service revenue stream, it is as big as a fortune 50 company, and going to develop it over time, what we're not going to introduce anything that we think is not perfect and so therefore, i mean you can say that apple stock should go down, but apple stock's not been that great.

>> it doesn't move on this this is nothing. >> that's my point. >> but it is nothing and should it be something carl >> no idea >> thank you. >> maybewhen david was critica of apple's first original programming properties a long time skeptic on apple. >> i have been >> we've been talking about this universe, and they got, think of netflix's library. >> and fox, what about fox would that be a good bidding war? how about the time-warner bidding war. would it be good to be in that one? >> no. >> you're right. >> i'm right >> carl, just said i'm right. >> thatwas good. >> we have 1% declines basically, only one or two components of the ndx are green. let's get to bob pisani. good morning, bob. >> good morning, guys a little bit of a feel of a flushout, i say that very heavy volume at

the open, ten to one declining to advancing stock, an unusual number and i want to look at the sectors, to point out something very important, i know everybody is focused on tech but it is not the worst performer, actually energy and cyclical sector, industrials, and materials, are doing poorly as well this goes to what i call the peak reopening story we have been talking about the last few weeks, this is as good as it get, focus on that for a moment. let me show you tech here. mega cap tech. you know the story here. mega cap tech is down. 10, 12, 14, 15%. apple is 15% off of its recent high microsoft, about that. a little bit more for the chip names and nvidia is probably about 15, 16%. some of the other ones like xilinx maybe a little bit more in the 20% range off of the 52-week skies. it is the thematic tech funds, cathie woods, and all of the clean energy etfs, 35 to 40% of

of the highs the bitcoin block chain etf that has a lot of the stocks like galaxy in them, they're off about 30%, and finally, cloud computing, another sector, off 25 to 30%. and let's put up some of the cloud computing stocks because we like talking about fastly and jfrog and snowflake and pager duty, and they're great companies but they don't make money, so they're 50% off of their shies, because there's a concern -- highs, because they're a concern about making money and zoom makes money but that has been down a little bit. a, 60% off you take a look at the popular tech names the cathie woods' names, etsy, pay pal, they make money but ne trade at 50 to 60 times forward earnings that's a lot twitter probably will make a small amount of money this year. it is probably trading at 70 times forward numbers. you get the point. pricing starts to matter when interest rates start to go up. high multiples start to matter and as inflation worries, as

carl pointed out, listen to carl, commodities have topped out. they topped out several days ago and so are the commodity stocks topping up they had enormous run-ups. no 50% off with these guys freeport, nucor, apache, that's what i'm talking about, the peak reopening store is coming forward with the big names in the materials sector pay attention to that. as for the markets, i'm saying squeezing out, 40% off the highs in thematic tech mega cap, 13% off. and the reopening, still strong but peaking. that's the story right there still strong to peaking and the fed says we're more concerne about employment over inflation. we will see if that changes but that's the primary paradigm the market is working with right now. take a look at the s&p 4056 that was the low a week ago. we're still a 15, 20 points above that particular low.

right now, based on 2022, carl, we're at 19.3 multiple on 2022 numbers. we're below 20 for the first time in a while. and yes, the market is now tending to use 2022 estimates. so the market is getting cheaper right now. we are taking some things down, some of the frothiness down and carl, i view that as nothing but a good sign for the health of the market back to you. >> bob, thanks bob pisani post nine for us today we will get to rick santelli hey, rick. >> hi, carl. indeed the minutes may be important of course, as it seems our central bank is the only one that will never seem to mention the t word, the taper word, and you know, what happens after a sugar buzz we all know what happens after a sugar buzz you get a little tired and take a nap and crash a bit. bob calls it peak stocks i don't know if it is peak stocks or not. but i know most viewers and listeners, if you peak in your wallet, no new stimulus checks they're pretty much all out.

the residual talk is about more infrastructure policy spending, but that's going to come with some strings called tax hikes the market doesn't seem to like that very much an intra-day of 10s, yields are down and what happened look at the three-day chart, you can see, the yesterday lows at 1.62, 1.63 most traders are looking at and you can kind of call this area white noise but the most important part is there is very little give-back we continue to be very stubborn on rates that may come back to us of course and if we look at in bunds, this is the key this is why i'm a little nervous about our rates. bund yields continue to be more aggressive than u.s. yields. today they clicked out at minus 0.7. they haven't closed at zero or higher since may 6 of 2019 as you can see on that chart. but here's the issue if you look at the difference between our yields and bund

yields in early april, 205 basis points difference, over 2% difference right now that difference is about 1.75 so about a third of a percent. about 30 basis points have been shaved away. now, if you look at that on a chart, year to date, the difference between 10s and bunds and the dollar index, the closer our rates get to europe's, or europe's gets to ours, the more damage that's doing to the greenback, or put more aptly, the more positive it is for the euro currency, and that is a dynamic you need to pay attention to carl, jim, david, back to you. >> all right rick, thank you very much. rick santelli, we'll take a break here, and 1% declines at least, for the major averages, s&p, 4072. we did get a bounce on bitcoin right at 30 k. right at the nose. and the current price, we're down less than 18% we're back in a minute

confidence is at the heart of everything we do at carrier. our systems fill buildings and homes with healthy, clean air. we detect and put out fires, and help people stay safe and secure inside. our innovations keep foods and lifesaving medicines cold and fresh until they reach those who need them. at carrier, we create solutions to help you build a brighter future...

ok, at at&t everyone gets our best deals on all smartphones. let me break it down. at carrier, we create solutions you got your new customers — they get our best deals. you got your existing customers — they also get our best deals. everyone. gets. the deals. questions? got it. but, why did you use a permanent marker? because i want to make sure you remember. i am going to get a new whiteboard. it's not complicated. only at&t gives new & existing customers the same great deals on all smartphones. get up to $800 off our latest 5g smartphones. (vo) this is more than just a building. it's an ai-powered investment firm with billion-dollar views. a cutting-edge data-security enterprise. yes, with a slide. a perfect location for the world's first one-hour delivery. an inspiration for the next workout cult. and enough space for a pecan-based nutrition bar empire. it could happen.

this is where dreams become brick and mortar. find yours, on loopnet. in business, it's never just another day. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it. comcast business powering possibilities.

we did get a bounce off of 30k on bitcoin look at crypto declines in the 30% range or more bitcoin has erased all the gains since the buy on february 8th. we're back in a minute that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. if i could, i'd ten-x everything. like a coffee run...

don't just sell it. ten-x it. keeping your oysters business growing has you swamped. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo

let's get to jim and stop trading. >> larry culp has gotten a lot of heat. he's made too much money i don't like people who make 50 million and destroy incredible amount of value. i'm not talking about randall stevenson there. i'm just using it as a rubric. he's part of it. but larry culp has done a great job, and this morning he's rewarded with a barclays piece where he's talking about aviation data improving. that's incredible. balance sheet should die down. david and i joke around about ge, but i think larry culp has done a good job and i think that he should be rewarded and the barclays piece is a good one that's where i would go. i would also buy ford where the president clearly liked that

f-150. it was quiet and went 0 to 60 in about four seconds there's a pair of 12s. if you want to play rumicube >> we look forward to seeing more of the lightning tonight. how about "mad"? >> sysco, a good quarter take two and a new guy, patrick dovigi. i like the waste business. i want to know if people are starting to are recycle waste because there's so much copper and steel and aluminum people are picking through trash and making money david? trash pickers have never made as much money as right now. >> jim, we'll seeyou at 6:00 "mad money" at 6:00 p.m. eastern time don't go away. in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does.

with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. ♪ ♪ ♪ cisco. the bridge to possible.

what happens when we welcome change? we can make emergency medicine possible at 40,000 feet. instead of burning our past for power,

we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change. good wednesday morning welcome to another hour of "squawk on the street. we're watching this meltdown in crypto this morning. bitcoin hits a low of 30k. just a few weeks after 64k

how does it affect equities and larger asset classes >> it's an ugly day for the market here are three of the big movers we're watching closely bitcoin, of course, i think everyone is talking about discontinuing the plunge almost below 30,000. china cracking down on crypto currency transactions. bitcoin currently trading at levels not seen since january. similar move for etheir yum. target, though, is bucking the downward trend in the broader market beating on both the top and bottom lines same store sales up almost 23% for the quarter. that was more than double estimates. shares at 5% shares of wells fargo are moving lower as well. that's following a downgrade at ubs from buy to neutral saying the risk/reward profile is no longer attractive. wells is down 2 .5%. >> thank you, morgan the major averages are on pace

for what would be a third straight day of losses of course, it is early in the trading session. technology stocks getting hammers. let's bring in mike to help us break it down. from my perspective, give me the connection between what we're seeing in crypto and what we're seeing in the broader market >> well, one way of looking at it is you had all of these kind of excitable crowded parts of the market that started to peak and sell off really going back to labor day of last year when faang had the relative high. and february the solar and sas stocks, the ipos, the spacs and krip poe was the one thing that really had not had much of a shakeout that's one way of seeing it. we've kind of being rolling through this and having risk an times tested in this right now the direct connection i think is the people in general who would be very heavily into crypto and have it as a big part of their portfolio and have leverage on it might also own the adjacent technology stocks whether it's semi conductors or the big internet and sass names.

to me that's the link as a portfolio connection as opposed to a fundamental one right now and honestly, we're seeing broad pressure on the markets. the big context is all the indexes going back down in the vicinity of last week's low. we're not there yet. it seems like things have not gotten out of control on the downside to date to me that seems to be the way to think about it. almost the rolling corrections through the more speculative parts of the market. >> you said something that's key. the leverage piece of the bitcoin story. do we know how much leverage is kicking around in the investment world where it is concerned and how much that could not only be driving the dramatic move we're seeing in crypto currencies right now but also to your point, the rotation we're seeing in other parts of the market >> you know, i don't think we know specifically how much and that might be part of the issue. and that essentially it's a shadow and a what if and you only ever know in retrospect exactly how

overextended people are. we've had multiple 50% declines in the last ten years. it didn't necessarily spread in terms of financial contagion but it's bigger than ever in terms of the amount of money involved and the number of players involved i think that's one of the things that we're on alert for at this point. and again, in financial accidents, pretty much only ever happen when you have excessive leverage or some kind of crowded carry trade where people thought it was low risk and it was high risk >> mike, i know your point on squawk earlier this morning was that rates have been behaving steady you'd be a lot more concerned if that were not the case we have another piece out today on ig spreads, hard to imagine them getting any more narrow what's your take on what that is telling us >> i think you have to agree with that. in other words, you're not necessarily going to get much incremental help from here from the credit markets getting even more strong. and spreads going down even

more so whatever valuation support in equities we're getting from that, you're just getting. it can be supportive as long as it stays firm. it's not something where you can look for it to be a driver for the up side. and really, equity valuations have been flattish for months because earnings are up so much. and so i think that credit has not been something to be concerned about, but it's also -- the next big direction that goes is probably to worsen and not improve from here at some point >> okay. mike, thank you for kicking off the hour with us retail results are rolling on. one of many things we're watching in a busy week. target surging after comparable same store sales more than double forecasts lows lower despite a beat. that's down about 2% joining us is the director of research and consumer analyst at luke capital markets good morning laura, i'll start with you before we get to target, which is definitely the outperformer today, i want to get your

thoughts on why we're seeing home improvement retailers trading lower despite the fact that we saw strong beats for both of the companies as well. >> sure. some of this is the part of it is already priced in i think analysts expected some up side. investors expected up side they had outperformed the market going in what's a little more baffling to me is tjax trading down when it's underperformed the market i think that there's a big question in retail about a trade away from home and into apparel which is a trend that we think investors should play right now. >> michael, i know you cover both of the names. i want to get your thoughts. >> well, i think home depot saw a little bit yesterday they said april -- may decelerated a little bit on a two-year trend and then today a strong number in line with home depot on a two-year basis they comped at 25.

a little bit of pressure to me both tremendous numbers and tremendous quarters here >> laura, let me follow up on your comment about apparel and why you believe that is going to sort of see a surge. does it have anything to do with return to work what's behind it >> it has something to do with return to work, return to events return to just going out and meeting with people. i think a lot of us may not urgently want to get back into real clothes, but i think most people will be dressing out of the lounge wear and active wear apparel they wore last year. i think most people have been shopping their closets for the last year, plus. i think people are ready for new looks. >> who's the beneficiary of that, laura? >> we love off price we think tjax, and they beat by 1.5 billion. we think we'll see good things out of ross stores

we by burlington will have strong numbers consumers want a value, but they'll be out soon. >> the mom jeans are getting all the attention. everybody seems to be buying into those all right. michael, i'm curious given the fact that you have a pretty expansive coverage network when it comes to retail, the fact that we have these stimulus checks and the reopening efforts right now, i mean, when you look across the sector, is this a rising tide that lifts all boats, at least from a stock perspective in the near or medium term? >> not all boats, but i think boats that have well thought out and are executing on omnichannel strategies we saw that from target today where they're strong last year, and e-commerce now customers coming back into the stores in the strong there as well really need to be strong on both sides. but that does leave us a lot of things that we like. target being one walmart. ulta, i think is interesting

one of the things target says is going to be huge demand in cosmetics this quarter and probably beginning in april. not just skin care, but color cosmetics. that helps ulta. there are a number of names we like that are taking the strength in the consumer in an omnichannel way. >> your take away from target and also given the fact that the retail earnings parade is not over yet, what are you most keyed in on or most bullish about in terms of the names that have yet to report >> right i think we may be entering a roaring 20s kind of scenario where you do see beats at all consumer names target's particularly impressive because they are against fairly difficult comparisons. so i'd be buyers of costco and bbja's they has stock in the prior year period, but we think they're doing well with more new members

than ever. our focus next week is on burl burlington their stores look phenomenal fairly new managers there. most room for improvement in burlington, we think next week >> okay. we'll leave the conversation there. laura and michael, thank you for joining us >> thank you >> thank you as we go to break, look at the road map for the rest of the hour the selloff continues. dow is down 500. techs getting hurt major averages on -- >> ev stocks are up. many double digits, in fact, this week. what names are safe to own and n a group that has been battered overall. and jeff bay zoe's blue origin auctions off a seat to space. we'll speak with the head of astronaut sales on how that quk ts gng "sawonhe street" will be right back after this. esg is responsible investing.

who's responsible for building esg into your investments? at pgim, the pursuit is on for outperformance. as active investors, to outdeliver with customized strategies, integrating esg best practices into our investment decisions. as asset managers and fiduciaries, to outserve, with our commitment to better esg outcomes. join the pursuit of outperformance at pgim. the investment management business of prudential. with a bang. energy and change came to every part of our universe. seismic or small it continues. (♪ ♪) change is all around us. (♪ ♪) shaped by technology and human ingenuity. we can make it work for you, and your business. let there be change. accenture.

president biden test driving a few pickup yesterday phil has more. >> you talk about great exposure it's not uncommon for companies to say here's a new model coming out in the future and the president will be standing in front of it. maybe at the white house or at some other venue but yesterday ford not only had the president at its plant in deerborn, michigan

it had the president taking the f-150 lightning. this is the electric pickup. after a test drive, he said this sucker is quick. not a bad way of showing off the model you'll be unveiling tonight. the f-series critical for ford and always has been. think about how important this vehicle is for the ford motor company. they have sold almost 40 million f-series pickup trucks since 1948 it's been the number one selling vehicle in the united states since 1981 and on average, ford sells a new f-series every thirty-seconds. it is the straw that stirs the drink at ford. the generator of all the profits. and ford is going electric with the f-series lightning, and at the time as it comes into the ma market, there's going to be more increased competition. the success they're expecting with the f-series along with other models as well as tesla is the reason you're going to see ev sales likely topping 1

million by 2025. look at shares of ford tonight is when they do the official unveiling it's not camouflaged you'll see the f-series lightning. we saw it behind the president when he was giving his speech yesterday. that happens at 9:30 and then tomorrow morning you do not want to miss the first on cnbc interview with the ceo of the ford motor company we'll talk about the lightning, how important it is for ford guys, you talk about taking a brand, carl, and really changing the equation, that's what they're doing here with the f-series and it's -- likely it's going to be successful. most believe it's going to be successful but it's not without risk. you're taking the most profitable and popular vehicle in the united states and you are saying we're going to make a radical departure and roll out an electric version. carl, back to you. >> phil, that's going to be fascinating to see how consumers respond to that. a big day for evs.

within that space, our next guest has most of his focus, a volatile group as we know. the senior energy analyst at cowenjoins us. we've talked about lockups in this space for several months. how much is riding on the lightning, do you think? >> carl, thanks for having me back i think yesterday showed the excitement with the potential of mobility you had lamborghini with their announcement yet and rolling out an all electric model by 2024. and then obviously president biden. this sucker's quick. right? like, these cars certainly, i think the worry with consumers is you're giving up performance by going from ice to ev, but a lot of the new models are the opposite the performance is quite better and as president biden said, this thing is pretty quick

i test drove the porsche the other day, and that sucker was quick, too i think there's excitement overall. obviously we're moving toward e-mobility from an investor standpoint, it's early it's the first inning or maybe you're even in the batter's box. it's early as you mentioned, driving a lot of volatility. >> yeah. you're pointing to a dynamic, though, it's not scientifically studied at all but one thing that keeps getting repeated is f-150 audience doesn't want to be preached to they don't want to be pushed into a new green era they may not even want to buy a car that's seen as a biden mobile i wonder how adoption of the f-150 is going to alter your expectations for what evs make up in terms of share >> yeah. look, i think there's certainly a portion of the population that will be slow to adopt and migrate saturday electrify kags.

but i think this is the way, where the market is going. there's been a number of instances where you have oems making the push and technology improving, but is demand following that i think like i said, there will be portions of the population that are slow to adapt part of that is on the charging side or the lack thereof and president biden's american jobs plan hopes to rectify the situation and deploy about 500,000 chargers by 2030 there's obviously a number of public companies who are well capitalized to put ports in the ground and i think it's -- i think there's a psychology involved. i think if you see more charging infrastructure on the road, that will help get you to electrifying >> we can talk about the ford and the other established oems traded publicly in the market, but to your point, we've seen a slew of ev companies and ev related companies, whether it's the charging companies or the battery companies that have gone public many of them through spacs

there's the first piece which is the fact that many of the companies are starting to retate the results given the sec, updated guidance the second part is you have companies like lordstown under sec investigation. the third part is you another list of companies that are now facing investor shareholder lawsuits, fraud suits. how do you navigate all of these uncertainties and all of these question marks for what is still very much an emerging landscape for investors? >> yeah. definitely a fair question there's obviously been a lot of headlines this year on negativity related to spacs. and you mentioned the sec accounting treatment over warrants, whether it's classified as equity versus liability. i think that situation will largely work itself out. and it's really a hiccup right now. but certainly it's -- it's early days you could argue a lot of companies that have come public were not ready

maybe this sector is not ready to be in the public spotlight every quarter, announcing results and still improving the technology, but certainly this is where the market is heading the e-mobility schematic is in place. it's obviously driven the companies to go public via spac. but certainly, it's still early. that's what's driving the volatility and the volatility will likely continue >> ready or not, the sector is here and you've got to do a job every day and trying to at least give people an informed minnopinion on what has the best prospect. how do you know what announcement is real and what is made up of air >> yeah. look, i think being early days, too, a lot of the companies will put out a press release every so often to kind of give you a sense of how the business is doing and the progress, and i think we like to see market share leaders, particularly on the charging side. we like charge point have about a 70 % market share

for in the u.s. for public charging and they hope to take share in europe i think we like to see technological strength and also market share leaders that can ultimately improve gross margins over time. >> it's fascinating, and it's getting a lot more interesting starting tonight with ford gabe, thanks a lot good to see you again. >> thanks, guys. take care. coming up, a major restaurant stock it's almost tripled over the last year. we're going to speak to the ceo on the other side of this break. plus another check on bitcoin. it is off its lows significantly. but still down almost 18%. "squawk on the street" will be right back wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done.

- [announcer] grubhub perks give you deals on all the food that makes you boogy.

(upbeat music) get the food you love with perks from... - [group] grubhub! - [announcer] grub what you love. 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... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.

brinker international. the owner of chile's, saying it's reopening investments the virtual brands have the business on pace to outperform 2019 sales and traffic joining us now is the brinker international ceo. good to have you, mr. roberts.

obviously your investors are happy given the performance of their company over the last year i'm curious. let's start off with a lot of people's questions, the labor market i think you said it's one of the toughest you've ever experienced. give us a sense as to why that's the case >> well, the good news is that it's tough, because with the vaccines, the stimulus, and then it all hitting at spring break, a high volume time, the sales took off we had great sales momentum in the industry specifically. with us we end in april up over 10% in sales and traffic so there was a real demand for more teamwork. team members and that pushed the system the good news is we set a goal to hire an additional 10,000 team members in a ten-week period we've surpassed that and hired over 10,000. the good news on the labor front is the supply is kind of meeting the demand now

we've got work to do to get everybody trained and get everybody working efficiently. but those are short-term challenges for us. and we're optimistic about our ability to kind of move forward as we enter into the summer. we're more excited about the growth opportunity and what we're seeing with sales, prepandemic levels being beaten as well as moving forward. >> and obviously i want to talk more about that. just to come back to you on your ability to actually meet your goals in terms of hiring, were you surprised? we've had any number of ceos and similar businesses that complain that they really are having a very hard time, but you managed to meet your goals why? >> well, i think this is where our scale can help we've got an amazing people works department we did have to kind of enter into new areas in terms of how to recruit and retain team members. we made investments in that. it's a unique period of time for the industry, for the country,

with a lot of people still unemployed, and yet a fairly robust economy so we put a lot of things in place that helped us recruit at a level that we haven't had to go to in the past. and that's what we did and now we still have spot challenges, some markets are tighter than others but overall, we feel pretty good about our ability now to be staffed and to be ready to deal with the increase in sales which, again, is the bright spot here. sales are looking good >> it's morgan given the cdc guidance loos week, how are you handling masks, social distancing, and will we see a rollback in the protocols? what will that look like post pandemic >> that's kind of been the topic of the day for us the last few days first, just to reiterate, you know, with the pandemic, from the very start, our goal was to keep our team members and guests safe we did that at an industry leading level.

we took guidance from the cdc and any state guidance and met or exceeded us we're excited. again more incentive to get people vaccinated is something we get totally behind. we've been encouraging and incentivizing our team members to get vaccinated. so we are getting behind the cdc. we are telling our team members listen, if you've been fully vaccinated, you can take your mask off and that's a big incentive for especially people working in a kitchen environment where it's hot. wearing a mask all the time isn't necessarily that pleasant. we're excited about anything we can do and get behind to incent people to get vaccinated we think a vaccinated environment is the safest environment. we're thrilled to offer to our team members and we rolled it out as we speak yesterday. that's rolling through the system today >> given the focus on commodity

and food prices and the increases we've seen there more broadly, how are you managing that, and what does that mean in terms of pricing power to consumers who come into your restaurants? >> well, i mean, again, this is where our scale and the quality of our teams come into play. just like with the labor situation, there have been unusual situations happening with supply chain and commodities over the last few months we think they're more temporary. we still see our long-term outlook being low single digit inflation. manageable we haven't priced hardly at all over the -- through the pandemic we've kept a lot of dry powder, if you will, from a pricing perspective. we have really been focusing on a strong value proposition and driving traffic, and we've been industry-leading on the traffic side of that so we feel we have plenty of room to manage our margins and deal with any commodity or inflationary pressures that we see today. and, again, what we've

experienced over the last few months seems to be more of a transitional experience, and we think it's -- we're starting to see things smooth out as we work our way through some of the challenges of the early spring >> yeah. we're looking forward to that. it seems to be happening thank you for your time. i appreciate it. >> i appreciate it thanks for having me dow down 465trimming the losses. >> good morning. here's what's happening at this hour president biden telling israeli prime minister benjamin netanyahu that he expects the nation to significantly deescalate the attacks today as the first step toward a cease fire that's after at least six people were killed in gaza following israeli led air strikes. india reported the high lest de - highest death toll europe preparing to reopen the borders to fully vaccinated

tourists from outside the block. the officials have informally agreed on the matter the formal announcement is expected to come as soon as tomorrow and new york's attorney general says the state is conducting a criminal probe of the trump organization in addition to its ongoing civil investigation. the company is facing allegations of tax fraud and also misleading lenders and insurers about the value of the assets you're up to date. morgan, back to you. >> thank you it's time for our etf spotlight, ticker gld. up 6% over the last month. even as inflation concerns continue to be a key worry among investors, the ten-year rising ahead of the fed minutes we're keeping an eye on that market it will be released at 2:00 p.m. eastern. gold specifically has been having a bit of a stealth rally in recent days and weeks even as bitcoin which has been called digital gold and called a hedge against inflation has not.

we'll take a quick break don't go anywhere. with marrjor averages all lower ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

market selloff currently in progress dow is down a little more than 500 points dom is tracking the internals. >> carl, with f we look at the overall picture, we've moved a off the lowest levels of the market for the s&p. the level that a lot of folks are watching on the cash basis is 4080. the 40-day moving price. five or six points below that right now. that brings the total loss from the record highs to roughly 4 %. yes, we're still within the realm of reason for a general pullback, the likes of which we've seen several times over the course of the past month or past 12 months, rather

if you look at the s&p 500 and big more into what's happening with certain parts of the market that are going to become a key focus, technology is the worst performing sector in the s&p 500 on a year to date basis. you can see the relative move compared with the overall s&p 500. that kind of growing gap is something many traders are watching the single biggest factor or influence on the overall sector. within the technology trade, there are three key parts of the market that have been seen as perhaps momentum or more leading indicators of the technology trade. the if i canner etn, relatively flat that's internet names like amazon, facebook, alphabet the semi conductor etf up 4% that's pulled back from the highs. and cloud computing is down 10%. the real laggard on a year-to-date basis

each of these has been pull back if you look at the way the nasdaq is trading today, maybe no surprise that when it comes to buying dips, many investors and traders are looking toward the stocks that kind of got us here over the last decade. we're talking about apple, microsoft, amazon and alphabet these are the four biggest stocks in the s&p 500. a massive influence on the nasdaq down about roughly 1%. down a half a percent for microsoft. alphabet down about two-thirds of one percent these four stocks are outperforming the overall market they're holding out relatively well this will be a key kind of point to watch in trading today is whether or not you see some of the relative outperformance in the megacap technology and communication type names >> it would be more worry someif

they werer with sooefed to be a source of -- perceived to be a source of funds. the vix, i'm curious your thoughts we had the 40% rise over a couple days. still, i mean, elevated relative to recent memory at 25 what does that tell us >> relative to recent memory and the longer term kind of moving average or trend line puts you around the 2 2 to 23 range with the overall picture for the volatility index as you can see here, we're very much elevated. you can see it going all the way back to the last week here it's still at least a little bit of an indicator about whether there is a broader place selloff in play. it's been localized toward technology if you are going to see more elevated volatility, some would say we were due for it because we've been languishing for a long time even over the last week at the levels maybe a pickup and certainly over the last year and it's also about trading correlations these relationships between asset classes. right? i mean, for many of these tech

stocks, whether it's kcrypto currency, it swings to the up side, have been maybe due to a pullback and i would also note it's not just those it's also with regard to some of the asset classes on commodities. we've been talking so much about the surge in lumber prices by the way, morgan, i know you're agreeing with me here did you know it's eight straight days of losses for lumber prices in that span, in eight days worth of losses, we're down roughly 31 % in lumber prices from the record highs just over the last couple weeks. to give you concept and context around how deep some of the pullbacks have been. >> yeah. i'm glad you highlighted that given the fact that we've seen that with lumber and a number of other commodities as well. i want to take a step back i realize it's an ugly day for the markets and what has been an ugly week and month. monday was also tax day, though. right? it was the last day to file your taxes.

so i just wonder how much that is actually impacting the moves we're seeing in the market right now. >> so it's interesting that you bring that up. because there are some traders and investors and strategists who point toward tax day as being a positive catalyst for the overall market now, typically the last couple years because of covid, it's always kind of been skewed a little bit right? last year and this year. but on or about the middle of april, we've been usually finding a seasonably strong time, at least in the near to medium-term for some of the stocks ahead of that summer season but with tax day in play right now, there's a real issue about whether or not the variability of all of these returns on paper that have kind of seen the markets at record highs really play into it and by the way, if you do have refunds coming in as many people may have during this time of year, it might provide some kind of a tail wind as people deploy some of the cash they've gotten back but roughly speaking, it's a little early to tell whether or not markets at record highs and

after a massive pandemic run we've seen since march and april of last year, whether or not that kind of a tail wind from taxes might be there this year >> all right dom, always bringing the context. thank you. after the break, a shortage of truck drivers could soon cause a shipping crisis. with cryptos selling off, look at the other names publicly traded stock names that for better or worse have become proxies for crypto currency. coin base j microstrategy down 10%. silvergate capital riot blockchain, overstock, all under pressure today have a plan to pay it off. buy now, pay later, with plan it. one of the many things you can expect when you're with amex. wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation.

fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done.

in business, it's never just another day. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it. comcast business powering possibilities. after witnessing the biggest drop in u.s. home construction since the start of pandemic. how should investors trade housing and real estate stocks fi ondut more on trading nation. more "squawk on the street" straight ahead

before we talk about tax-smart investing, what's new? -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪♪ we'd be closer to the twins. change in plans. okay. mom, are you painting again? you could sell these. lemme guess, change in plans? at fidelity, a change in plans is always part of the plan.

welcome back the major averages are all down. the nasdaq is down 1.2 % the s&p is down 1.5% 4066 is the level there. third straight day of losses for the major averages we're continuing to watch the economic recovery, consumer prices this morning the impact of a renewed truck driver shortage. check out shares of rider systems. those are down more than 3%. joining us exclusively with a look at the real world impact, rider system chairman and ceo, robert sanchez >> great to be on. thank you for having me. >> given the fact that we're focussed on a tight labor market despite the fact that people are out of work. trucking services, it's a smaller business for rider, but it is a business for you what are you seeing in terms of the ability to get drivers in

terms of the labor market? >> sure. well, ryder is a large employer of truck drivers they operate trucks for customers in our dedicated business and supply chains solutions business the more difficult it becomes to -- it gets to hire truck drivers is good for ryder. we outsource so others look to us to outsource when things good tougher. we have an extensive driver recruiting network we're able to find drivers where others have a tough time doing so so it is tougher the driver shortage has been a longer-term issue. with the reopening and the increase in the economy, it's gotten a little bit more intense now. but we're out there. we're hiring drivers we have about 1,000 driver openings right now

and we're offering signing bonuses. we're able to find the drivers that many companies that may not specialize in this have a tough time doing >> we talked about outsourcing as the economy ramps up. what are your customers looking for? i asked that knowing you provide services also used truck sales. >> direct. we're an end to end transportation logistics outsourcing company. anything from a fleet of trucks that you may need to lease and maintain all the way through a full supply chain operation where we're running distribution centers and managing transportation networks. so what we've seen coming out of the pandemic has been a real focus on supply chain resilience no surprise. right? most companies lived through the ups and downs of the pandemic. and as they look to the future, they're looking at how can i make my supply chain more resilient and able to react quickly to changes in demand in and we're specializing in that

we're focussed in north america. companies that are looking to shrink their supply chains more on shoring near shoring or really well-positioned to be able to help them with that. but resiliency is the keyword that i think most folks are looking for. >> yeah. on a day where we're expecting fed minutes and there's a debate around inflation for investors right now, ryder is seen as a barometer of strength and we saw that hotter than expected cpi number last week used cars got all the attention. truck prices were a part of that spike we saw as well i realize it's helped power the earnings recently, too what are you seeing within that market and elevated levels or evalevat prices >> it's a cyclical market. we're a one of the largest purchasers of commercial trucks in the u.s. and also a large independent reseller of used trucks the used market was in a slow

market for the last couple years. but really spiked up beginning in really the middle of 2020 and it's really very strong right now. you get a lot of -- like you said, people talk a lot about the strong used auto market, but the used truck market is equally strong inventories are low. there's not a lot of new trucks being built yet. and there's a need for trucks. so used trucks are where people are going. so we're seeing used truck pricing really going up at a very fast clip inventories are low. and customers are out there looking for the used trucks that are there. >> robert, since we have you, just real quickly, not something we've been talking about as perhaps a year or two ago. autonomous trucks. what do you see in terms of the ability to develop the technology where it's really on the road >> yeah. we're excited about the possibilities there. i think as we look at it, i think the autonomous truck makes

it to the market sooner than the electric truck depending on how that technology develops certainly in certain lanes and in certain geographies, we partnered with several companies in working through that along with the oems. ryder is well positioned to be the owner of an autonomous truck network since we have the ability to manage and maintain trucks but we see that making really good progress. i think again, in certain situations in certain lanes in certain parts of the country, you may see autonomous trucks become a reality at a larger scale sooner rather than later >> all right it's a conversation we would love to continue to have with you, robert. thanks for joining us today. >> all right thank you. guys, coming up in the next hour, we've been waiting for some kind of word from the elon

musk about the crypto selloff. sure enough a few moments ago, he tweets tesla has diamond hands emoji. we're going to keep on top of that in the meantime, the conversation going with a live stream on bitcoin. check it out on our linked smah shopify. "squawk on the street" is ck tethisba

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... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap! so basically i can pick the right plan for each employee... yeah i should've just led with that... with at&t business... you can pick the best plan for each employee and only pay for the features they need.

which shows will you be getting into tonight? how 'bout all of them. netflix. 'cause xfinity gets you really into your shows. when one burns for someone who does not feel the same. daphne, let's switch. from live tv to sports on the go. felix at the finish! you can even watch your dvr from anywhere. okay, that's just showing off. you get all of this on x1. so go on, get really into your shows. you need a breath mint. xfinity. it's a way better way to watch.

welcome back to "squawk on the street." i'm dominic chu. it's a sell-off right now on wall street with every sector in the s&p trading in the red as you can see behind me here far and away the worst performing sector this morning is the energy one. down roughly 3.5% right now. within that sector just about every constituent is down 1% with the biggest declines in names like devon energy, holly frontier as well that move in energy stocks comes as we watch oil prices plunge the most since early april and turn negative for the entire month of may so far. guys, despite the pullback today, both west texas intermediate crude and the energy sector are hanging on to year to date gains of 30% each yes, it's been a good sector so far. back to carl, over to you guys >> all right

thanks so much. before we go to break, as part of asian-american and pacific islander heritage month we are spotlighting our contributors and business leaders and anchors and reporters. here's contributor tom lee >> being raised as a second generation korean really did prepare me for my career today my parents were inspirational because they came to the states not speaking english my dad became a very successful doctor and my mother a business owner. my parents taught me the importance of working for the community and always making long-term decisions and not trying to maximize what are your benefits today but what's best for the future not only for myself but my community.

experience capability, crafted by lexus. the remarkable gx and lx. lease the 2021 gx 460 for $529 a month for 36 months. experience amazing, at your lexus dealer. cal: our confident forever plan is possible with a cfp® professional. a cfp® professional can help you build a complete financial plan. visit letsmakeaplan.org to find your cfp® professional. ♪♪ new projects means new project managers. visit letsmakeaplan.org to finyou need to hire.ssional. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home.

dogecoin. welcome back take a look at shares of virgin galactic this morning down about 3%, now down more than 70% from the february high. there are a number of factors behind the sell-off, but that includes the fact that space tourism competition is heating up jeff bezos blue origin, the direct competitor is auctioning one seat to the highest bidder

on its new cruise flight set t happen july 20th blue origin unveiling the highest bid publicly so far, $2.2 million so far for a chance to be on that first flight. we're going to hear from the company's director of astronaut sales tomorrow right here on "squawk on the street. we'll be getting more details around that. in the meantime we are keeping a close eye on the sell-off we are seeing and bob pisani has more for us. >> off the lows but just barely. still very heavy take a look at the sectors nice bounce in tech stocks we're well off the lows there. but notice the reopening stuff that the bank stocks, industrials, energy, materials, not much of a bounce there pay attention to that a bit. megacap tech doing okay. fractional declines there, but off of the lows in microsoft and apple and usual names. these stocks are down 10, 11% from the 52-week highs schematic tech stocks, ark fund

bouncing but down 35% declines in most of these clean energy now is positive that was negative. it's that block, that third one there, those are all of the blockchain stocks that are out there. let me show you some of them galaxy digital, marathon, microstrategy, riot blockchain, down 40, 50, 60% from the 52-week highs back in february cloud stocks doing better than the opening but for the most part down. j hl frog just went public but most of these stocks still don't make any money zoom video makes money, but that's been a problem here and relatively expensive speaking of popular tech stocks, the cathie wood stocks, etsy, paypal, tesla, twitter, again, some of them make money, but remember, they're really expensive. 50, 60 times forward earnings and a problem as the interest rates have gone up and inflation concerns have gone up of those high multiple stocks have been a problem. bottom line here today, keep an

eye on those inflation relate lated stocks new coarse had a great run, some of the steel stocks down today. >> all of this as we await another direct listing square space and another ipo tomorrow what a week to be going public that's going to do it for us on "squawk on the street. kharpal starts right now. happy wednesday morning. welcome to "techcheck. i'm jon fortt with carl quintanilla and deirdre bosa today crypto crashes bitcoin lost a third of its value and touches 30,000 we will tell you what's behind today's drop google i/o, head of the payment division joins us this hou