good morning stock futures are lower, but what a session yesterday a valiant stand made especially by the nasdaq which almost closed and bitcoin bounced almost 33% from $30,000 if you call bouncing from down 50% a bounce that's what we're talking about. we'll show you the big moves in stocks crypto and commodities what caused it the fed said it might, some day,

talk about discussing a potential plan that could, at some point, maybe, tight monetary policy. that's all it took plus, a recap of that straight ahead and oatly will trade today. we need to improve on that we will show you the price and have the first interview with the ceo. it's thursday, may 20th, 2021. "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. thank goodness it is thursday. it was a wild wednesday. whipsaw wednesday. a crazy wednesday. from commodities to crypto

the dow down 587 points in the morning before pairring losses o 160 points joe mentioned the nasdaq was the big winner i put it in the big win category down 1.7%. cryptocurrency bitcoin plunged 31% during the day. hit the low of $30,000 it rebounded as well came back by 33% in the afternoon. in fact, if you are looking at where it is trading right now, check this out bitcoin is up 2.5% almost back to where we were yesterday at this time it is almost like you could wipe out the last 24 hours. unfortunately, billions of dollars lost and money changed hands here and not the same people holding it necessarily now as were 24 hours ago it was $40,000 a second ago. that is where we were yesterday. we will have more on crypto in a

moment it wasn't just crypto and the major averages if you were looking at commodities, you saw swings. lumber futures swinging wildly first they hit limit down yesterday. tumbling by 5% then they turned around and hit limit up when it turned positive yesterday afternoon. all the way from limit down to limit up in the same day this morning, $1,327 is where we are trading. the u.s. equity futures this morning. we will relax a little bit check this out dow futures indicated down 200 points volatility still there uncertainty still there. s&p futures down 22 points the nasdaq indicated down by 71 points this morning. guys, the only asset class that didn't seem to budge yesterday was the treasury market. look at things right now you see the treasury yield for

the 10-year is sitting about where we were yesterday at this time 1.662% quickly, take a look at the "squawk stack. we have other examples of crypto and other wide rides ethereum, think about this the asset from $3,441 down to $1,850 and back to $2,446. you would think that is an active year. that was yesterday for ethereum. now trading at $2,672. coinbase is up slightly. yesterday it was down 6% six days in a row it has been down it is down over 40% from the initial trade back on april 14th copper prices. lowest level yesterday since may of 6th wti down 1.5% today. down 3.25% yesterday

gold, you talk about crypto being the new gold gold prices up this morning. guys, anywhere you looked yesterday, it was chaos. it was hard to take your eyes off what was happening in the markets. >> i have seen ten charts and they don't name them and they are all identical. they heall go up like this. it is obviously the fed. they show every asset class. commodities, stocks, crypto. when it moves, i'm not looking for a tail or dog. it is all one big st. bernard t me a month ago what peaked is ark >> down 17%.

>> yaark needs to make a stand. is that the new indicator? >> ark is down 17% year to date. >> see where it peaked maybe that was the early canary in the coal mine can you believe what's causing it what we sort of knew and that's druckenmiller talking about it the fed is full bored. it has to stop it just does we talk about the crack addicts and financial markets. the slightest idea they would stop and with e hehe get a day yesterday. crypto down 33%. back up 33%. that will get your attention >> what did you think of the

fed's comments when they would start to discuss it at some point and eventually. they hedged it as much as possible the markets did go up. we are not doing it tomorrow talk about stop potential purchases in the bond market and talk about tapers. >> planning to come up with a plan to plan to come up with a plan that reminds me of sheldon no, no it's not a cult. if you think about going against what the consensus is, i think you are seeing a few people do that now maybe that is leaking out. those were april comments that are coming out >> it's usually six weeks later. that was my question they must be more concerned at this point than six weeks ago. >> then i thought, all of the commodities we think are showing

underlying inflation, they are backing off, too was that asset inflation not real inflation >> i think it is hard to get some of this stuff it is the demand picture and supply chain pictures. it is hard to get into this. lumber and other issues. i wonder if that plays into home depot and lowe's prices are so high this is all anecdotal. people doing home construct projects or contractors. things have been put on hold because prices are so ridiculous barry stern said it is cheaper to build a steel frame than with lumber some of the trends are slowing in recent weeks. some people said forget it i'm not doing that project

>> how many did you say? >> 1,000 board -- $1,327. >> still seems cheap that's a lot of wood still seems cheap. that's a good deal. >> look at where it has come from $600 it double. if the cost of your project suddenly doubles, you may say hold on. >> can i fit that in here? can we fit that in here? really i don't know >> i don't know. probably a tall area. can you stack it on top to the ceiling? >> stack it. stack it stack it like we're stacking bitcoin. we have to talk milk today, guys we have milk. >> it is not milk. >> i know. i don't know i don't know i don't know >> what do you mean? >> milky

>> i haven't decided this goes back to my whole almond milk. swedish milk maker oatly raising $17 a share. we will talk to the ceo in a little bit the stock begins trading today on the nasdaq ticker otly. celebrity backers of the dairy alternative include you oprah win winfrey and natalie portman. we have the interview with toni petersson. we can ask if it is really milk or not. >> put it on cereal? >> i think you do. you have to use extra sugar. >> what? what >> milk comes from lactation

i i have oat milk in my fridge >> what? >> okay. uncomfortable guys lactation. >> we're fine. we're fine >> uncomfortable >> do we have any? is there any >> i have some in the fridge right now. >> you do? oatly? >> yeah. i do have oat milk it is not oatly. i have soy milk. i have almond milk i have teenagers. >> i don't drink milk a lot. >> lactated milk for your coffee. >> rare to use milk. >> i try to stay black with the coffee black coffee absolutely >> why

>> past ort of the fasting >> i'm trying to do -- i can't get to 16 hours. a straight 12-hour fast from dinner to morning. black coffee he does not count the doctor tells you that you can have black coffee. >> and you fast and then have eight doughnuts? >> then i binge. that's how i do it. >> it is like getting a yodiet coke with a hamburger and fries. let's go to cisco. it is a dow component. revenue beat quarter guidance.

revenue fell short of the expectations the ceo said supply chain and higher freight and unit costs is an issue he expects the issues to last through the end of 2021. when we come back, as we mentioned futures are under pressure once again this morning. if you thought we were going to get a respite today, you were wrong. look at the biggest drags on the s&p. cisco is leading the way 6%. dish network is off 2.6% hollyfrontier is down as well as lumen and l brands we will have more market reaction after this break. later, we will talk about the wild move in crypto with brian brooks "squawk box" will be right back.

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welcome back u.s. equity futures might right now be under pressure. we are back where we were yesterday at this time dow futures indicated down 200 points nasdaq is indicated down 61. s&p down 21. all of this comes after the whipsaw day for stocks and commodities and crypto joining us to talk about what is next for the market and the

volatility is jay kenahan. guys, it is great to see both of you. jj, what the heck happened yesterday? try to make sense of this. >> you had a few things. tuesday night, the weak close and momentum carried around the world. you had bitcoin and cryptocurrency getting weak. we came into the day with the mad momentum we held the 50-day moving average which overnight last night also looks like on the s&p 500 futures have gone down near that area. we held it and rallied back significantly. in fact, the one thing i came away very encouraged by yesterday is we always talk about the weakness with what the

fed may do you have to bifurcate technology what is the old school tech companies? apple and microsoft and facebook what do they do? they rallied back to be positive i know the newer technology companies had a tougher day. we have to separate those two going forward. retail investors will turn toward apple and microsoft during times of trouble because they believe in the longer term story for those companies. >> and maybe because it is like comfort food, too, right >> absolutely. let's face it. they have performed. the mentality starts with the companies overall. that was what i was interested in seeing. i'll be interested in seeing it today. as we get to the 50-day moving average. will we continue to see people coming and buying? becky, it has paid off for

years. if i coached a football team, if i ran a play and nobody stopped it, i would keep running the play that is the thought process of a lot of investors right now >> run it until you get caught kevin, i know in your title, it says fixed income. you look at equity and fixed income as well what happens after a day like yesterday? does it make you more nervous or make you think we're shaking out things what is your reaction? >> i'm not nervous at all. the market does not like uncertainty. we have a lot of uncertainty with the market feeling like the fed may be behind the curve. you have the potential for tax increases. you have the market concerned about meeting higher earnings expectations going forward you have all of these things going on, but i think it is a time for investors to really

rebalance portfolios for instance, in our shorter time horizon portfolio which is more conservative. we rebalanced domestic equity position we started the year with 5% over weight that rallied to 7.5% overweight. we needed to take the chips off the table because there was going to be the period of uncertainty as we go into the summer months. the market, like i inflation the next three months will be important to that. i think there are opportunities when you get these types of pull backs in the market. >> opportunities where anything that is pulled back extremely or pull backs we have seen in cryptocurrency or you are looking at stocks in particular and thinking there was maybe some babies thrown out with the bath water? >> we are looking at stocks. thinking babies were thrown out

with the bath water. one of the things we have seen in opportunity as the economy reopens here and we had been -- everyone has been focused on goods. i think things will turn more to services that will bring the consumer back we are looking at the consumer if you think about it, for the last 12 months or so, the consumer has been paying down debt based upon receiving their stimulus payments or they have just not consuming and saving money. we are looking to the consumer to resume that leadership position we like consumer discretionary we think financials have an opportunity here as well banks are looking to lend. they are pbeefing up rewards programs to entice the consumer. the two together will be a good

place to look going forward. >> jj, you know, i love to hear what you are hearing from retail investors right now. for a while, things have gone nowhere but up when you see a day like yesterday and you get severe shocks to the system, what is the reaction from retail investors? >> becky, i think many are saying what are some of the companies in all of that which you have talked about a bit beaten up. they are looking at the stocks which they have held which have done well. interesting to me. stocks our clients have sold recently around the covid vaccine. pfizer, moderna, j&j u.p.s. has done phenomenally the last few months. i find it interesting the companies that performed well in

earnings and afterwards are people selling and trying to look to reuse that money what is interesting also is a little bit of a trend over the last month with the uncertainty. it was for four or five months, when clients sold, they put it back in equity clients are selling stocks and putting more in fixed income redeploying equity, but more to fixed income than in the past. the value versus growth tug-of-war we see every day, they are not sure which side to land on. they are looking for safety as we continue into the summer and as people head back to work. you were talking about home depot at the top of the show they come out with monster earnings stock is up significantly in the pre-market ending up down on the day. that action is still a little

bit confusing for people as they try to figure out what is going to happen the next couple months and the taper talk yesterday, you will continue to see the pattern of uncertainty a little bit and volatility staying above the 20 mark over the next few weeks in terms of vix sdp. >> taking money out of equity and into fixed income. they are more nervous. jj and kevin, thank you. looking forward to talking to you soon. >> thank you coming up in a moment, details on the ransom that colonial pipeline paid to restore its data after the cyber attack we will dig into that after the break. right now, take a look at the cryptocurrency used for some of that ransom as well bitcoin is up $39,000. we'll talk more about all of this and we'll talk to brian

brooks at 6:30 easrnte time. "squawk box" returns after this.

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welcome back to "squawk box. time for executive edge. update on the colonial pipeline ransomware attacks that stifled supplies on the east coast the ceo authorized the $4.4 million payment because they were not sure how badly it reached the systems and how long it would take to bring back the pipeline he knew the decision was controversial, but felt it was the right thing to do for the country.

the fbi advises companies not to pay ransoms for hacked data. it paid the ransom in concert with experts which dealt with dark side. the ceo said it will take months of work to recover some business systems. it will cost colonial tens of millions of dollars. i think, guys, when you dig into it and eamon javers said this before a lot of people pay ransom that we never hear about. unfortunately. i think he gets to the question about how these ransoms are paid it goes back to the issues of bitcoin and crypto that is being used in all of these types of things >> i think he said it was -- he didn't say someone told the journal it was 75 or 76 bitcoin >> they are not dropping off

suitcases of cash. and when people say it is trackable. it is amazing technology if so, why is it used? >> the freedom and anonymity of it >> it is either one or the other. >> nothing in life is one or the other. >> i know. some many of the crypto bulls say no, no, no you don't understand this is the safest thing out there. you can track everything because everything has a unit number >> if you have criminal intention -- the drug cartel and everything else is all done with dollars. if you have criminal intentions, you will do it probably 5% of the criminal money laundering and everything else is crypto 95% has gone on without crypto it is easier and better and it's elegant. i have a letter out there. the previous occupant of the house. i told you about it. it said we know all of what you

are doing with your girlfriend and your wife's going to know. if you try to tell her, that's not going to work. we'll tell your neighbors. >> and pay in bitcoin. i understand >> let's talk about this let's talk this is a latte. you would have a black latte that's not worth it. it's skim. this is skim what's wrong what's wrong with skim >> right here. right here you can see it here. this is iced starbucks iced coffee i'm doing a promotion. medium black >> what's wrong with skim? why am i supposed to feel dpguiy about skim >> you are not fasting >> you are saying i should be. i'm wearing spanx.

>> that is a separate conversation >> i think you were. >> i would rather drink water than black coffee. >> oh, you have your foam with a latte. >> i haven't had a latte in 14 months honestly i have not had a latte in 14 months >> you will have one soon? >> i might honestly, i have not had a latte in 14 months. >> you're kidding me >> cheers. did you see cryptocurrency people are trading them like crazy and i think the infrastructure is not there yet. these guys get overwhelmed we talk to the ceo of binance brian brooks he used to have a finance job before that. we will talk to him. as we head to break, here is

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good morning w welcome back to "squawk box." the dow yesterday down 160 points you can see about half a percent across the board if we round up. we will keep our eyes on that and crypto, joe. i don't know the tail wagging the dog or which way it is going. >> the st. bernard big, fat st. bernard you can't find the tail right now. it is all connected. that's my point. let's talk about the extreme

moves. bitcoin dropped $30,000 in trading yesterday before bouncing back. similar story for other crypto did you see where ethereum was in the last 12 months? did you check that out, becky? >> yeah. yeah >> $100. when it goes to $4,400 whoa, it's cheap at $4,400 >> the swings yesterday for that one asset, ethereum. i can't believer it. i have to look at the numbers again. >> were you able to trade it the volatility was so intense, it caused outages. >> there were -- sorry six whales got out >> a lot let's talk to brian brooks ceo of binance i would not call it a fledging

ecosystem, brian it has been around for a while maybe did not anticipate we would be this far along and is the the infrastructure there to handle what happened yesterday without disruption to the customers? >> yjoe, a fantastic question. we transacted 3.5 b$3.5 billion trading volume yesterday we are building infrastructure fast enough to keep up with customer volume. are we doing a good job? probably not i would say educate investors is just as important as infrastructure we are at a point in time where many investors don't know the difference with ethereum and solana they see it all as crypto. you need to focus on what the tokens represent and the network value is that is backing them. when we have that level of

education, you will see some amount of volatility go away >> do you know anecdotally is going on with coinbase you may not know any more than we do, brian there were times where you can't connect or customers getting statements of you can do something in an hour it was bizarre when there is an inability to buy, does that exacerbate, or sell, does that exacerbate the moves down if no one is there if the inclination is to buy. how do you find the bottom >> a great point of price discovery. in the equity markets, there are two sides to the debate. we make it so people can't buy we have circuit breakers that did not happen yesterday. our exchange had a brief outage on ethereum withdrawals that we

put back in less than an hour. when the market moves fast, we have those problems. we are hiring fast to build that infrastructure >> now, we talked about that let's talk about crypto, brian we have seen so many asset classes in this environment with zero interest rates and a fed on hold and with all of this qe and all of this money sloshing around is this a real asset class or is this a reflection or beeple nft? is it gold is it currency you had a finance job that lends credibility to the industry. there are questions going on

based on colonial and china and a lot of worries and headwind? >> my personal view is calling crypto an asset class is like calling stocks an asset class. most of us don't think of it that way think about it for a minute. tech stocks versus industrials and financials within tech stocks, e-bay is different from apple the education level of investors needs to be better ethereum is a different business from solana. that is a different business from protocol labs you need to understand what you are buying people are sophisticated about that you still hear stories of guys on the train poking around on coin market cap to buy any crypto asset that is the wrong way to think about it many of these things will go to zero some of these things will be foundational technology with real value for generation. people need to get that. that's what we're trying to build here

>> can you do the audience a favor and myself as somebody who does try to follow this. i feel i'm missing something a distinction between binance.com and binance.us what is available on both on what u.s. citizens can trade on and what they can't? there is a big distinction, i think. >> it is, andrew great question the concept of u.s. is a lot of the world when binance.com which had no crypto regulations. that was in the middle east and asia and things like that. binance.com bought that up and became the quickest industry in the world. a lot of the things we trade is not allowed in the u.s the question is how do we reach americans? a different company set up

founded by the same founder, ut no other connections except licensing agreements that is why we have different assets and different regulatory compliance tools the app functions differently. there is still dna and product development which makes us fortunate to access product there the licensing agreement. separately owned and managed >> what do you tell some customers out there or clients who say there are assets i keep hearing about new fangled coins not on binance.us. you can vpn over there i don't know is it illegal? is it not illegal? they say that is the only way to get some coins that are not available on your exchange or coinbase.

>> andrew, we don't tell anybody to vpn around us i can't stop what an ente enterprising american will do to get around the law i you apply geo fencing technology we don't tell people to do that. we wouldn't. >> brian, i have a question for you. it is actually posed by elon musk three minutes ago on a tweet it is how much is that doge -- in the window? then i think it says viber viking can you give us a quick rundown? there is dogecoin. it's up. up 15% this is something we will have to live with every waking thought from elon musk in terms of bitcoin and

energy usage and everything else now doge >> look, i'm excited to find the right moment to chat with elon about his thesis about all this his words are moving the market here we need to be careful about that joe, dogecoin is interesting i'm not going to question the value of it because cabbage patch kids have value and collectibles have value. i'm here because of the foundational technology being built. clearly it is something a lot of people find value in and i'll not question he all of that. i come back to the question of five years from now, which of the networks will be replacing banks as a foundational way of transacting peer-to-peer so, joe, i can send you money without bank of america handles that trade. >> we will have to have you come back and i know you talk to

people in the government i don't know what regulation looks like here or from the u.s. or china and all of these things you have something like bitcoin which is based on math and energy and everything else i don't know if that genie ever goes back in the bottle. >> it doesn't, joe we don't want it to. these are good things in the end. >> brian, thank you. >> thank you, joe. >> we will need you again soon thanks >> becky. when we come back, l brands is one of the biggest drags of the s&p this morning despite solid gains and sales. we'll dig through those numbers next >> announcer: currency check is sponsored by interactive brokers. the professional's gateway to the world's markets.

coming up when we return, old tech versus new tech nasdaq barely holding on to gains for 2021 what names should you add to your portfolio during the pull back that's next.

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welcome to "squawk." steep losses in the markets. the nasdaq was down 1.7% at the lows the index still down 5% over the past six months. what are some names to buy during the slide or are we going to call this a dip let's talk to ken ives before we get the names, is this a slide or is it a dip a slide keeps going. >> i think it's a dip. tech stocks are up 15 to 20% this is a near term pull back,

not the start of a secular slide or trend we do not throw in the towel we continue in goodwill into 2022 >> diamond hands, dan. diamond hands. tell us which -- which stocks are you going to buy with your diamond hands? >> look, i think right here, first on large cap, microsoft in terms of the cloud play. despite some of the white knuckles we're seeing, 2 trillion of digital transformations. that continues to be on large cap our best play along with apple. obviously stocks come back and worries are the best in the rear-view mirror it continues to be a super cycle play but services on the rerating then did you to cyber security i think if there's one sector you really focus on here, it's cyber security names like z scale, cybrar, sale point. we've seen colonial pipeline and that's not going away.

view more of the opportunity to own these names rather than the time to step back. >> uber and lyft, do you like both >> well, i think part of this, you know, you're talking old tech/new tech. i think you have to have a basket you want to be playing some of your aggressive plays, cyber security uber and lyft, the best recovery plays we see in the market i can tell you pent-up springboard demand regulatory in terms of what we're seeing employee versus contractor a year from now these are stocks up 40, 50% that's why i love this sort of basket approach in terms of ways to play tech >> and finally tesla we have this conversation 12 months from now you think tesla will be where? >> i think a year from now $1,000 stock to me, obviously we're going through chip shortage.

china numbers for april which is unmitigated disaster i think we go out to the green t tiedal wave. >> we do not put in the white flag on the tesla bull thesis. >> dan ives, tell you that no paper hands for you two big hours ahead. nice to see you. oatly set today.

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good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures. we are in the red after a wild ride yesterday dow looking down 113 points. s&p 500 down 111 points right now. the nasdaq, all important nasdaq you watch this whole time down about 27 points. joe? >> here's what's making headlines at this hour in addition to more weakness, at least at the start of the session for the dow, bitcoin recovering from yesterday's

slide that saw it touch a four-month low near the 30,000 level. right around 30,000. bitcoin had risen to nearly 65,000 in mid april. during yesterday's volatility cryptocurrency's exchanges coinbase and cracken surg oatly is expecting the debut they sold 84.4 million shares. $17 million a share raising $1.4 billion and it implies a valuation for the company of 10 billion. both big numbers oatly. ceo toni peters ds son is our guest. biontech is storing it at

standard refrigeration temperature for up to a month. previously unopened and thawed viles can only be stored in a vile for up to five days that should make the vaccine more wildly available especially in areas where storage and transport are more difficult around the world becky? >> futures this morning are pointing to a lower open and a fourth straight day of losses as investors continue to focus on fed policy, earnings and valuations the nasdaq is on track for a fifth straight weekly loss if that's the case, that would be the first time that's happened since november of 2012. that's right talking about more than 9 years ago. the dow is on pace for its fourth weekly loss out of the last five weeks. for more on this let's turn to liz young, the head of investment strategy at sofi. liz, what we're seeing right now, this pull back, you think is just a correction in a bull market and it's a necessary one.

why is that? >> i do think it's a correction in a bull market i also want to not overly drama advertise the correction that's happened we're really only down 1.3% on the week we're down 1.4% on the month still up a month on the s&p. if you look at regular expectations and what we would see on an annual basis, we're still on track to post high single digits if we stay flat for the rest of the year and that's okay. i think we're suffering a little bit from recency bias. looking at 2020 and the amazing momentum we saw in the stock market in 2020, 2021 is really more about the economy as we know, the stock market always leads the economy what we're seeing is economic momentum that has to confirm the stock market momentum that already happened we also can't have it both ways. we were worried about this a few months ago things were too frothy

valuations were too rich all we did is go up every day for seemingly no reason. we're worried about that now that we're having corrections and a shakeout where some of the excess is falling out of the tree, we're worried about that as well i don't think we need to worry as much as people are expecting. >> although you have seen some pretty significant moves and if you're talking about a transition, you're talking about a transition from what to what the nasdaq has been incredibly strong a lot of the stay at home stocks, big tech stocks. you think we're going to transition away from the leadership and there could be more pain to come for those stocks >> yeah. i think naturally as we move through the year as the economy gets healthier we're going to continue to see the 10-year treasury go up we're going to continue to see pressure on the long-term growth stocks but when we talk about a rotation, i think it's really over done to keep talking about the rotation from growth into value. i think investors have started looking for growth in different places and there's the sort of

assumption that growth stocks mean high beta stocks or they mean high risk stocks. if you look at the high beta etf versus the low volatility etf, it continues to outperform even this month it continues to outperform the two biggest sectors are financials and energy. that's a high value etf. i don't think we have to think about it as this rotation out of a risk appetite. risk appetite is healthy in the market it's a matter of we're not going to see this concentrated leadership by only big tech names. you'll see this broaden out and it already has you'll see leadership broaden out throughout the rest of the year some of the pull backs are a good opportunity to make sure you're diversified into the other sectors. >> liz, we talked to j. j.j. kinehan from t.d. ameritrade and he said retail investors have been showing signs of nervousness

they've been selling some of the stocks that have performed really well. moving that money not into other stocks but into fixed income what would you say to people who are doing things like that >> well, i think it really depends on what parts of fixed income you're moving money into. i think corporate america is very strong. to the up side in yield. so i don't know that moving a ton of money into fixed is the right place to do that right now. i do still think there's plenty of people staying in equity and as long as the 10 year stays at this level and moves up in a more understandable fashion or a softer fashion and not this huge spike up, i think we can do fine in the equity market >> 10-year, the yield's barely

budged people are looking at a lot of the commodities, inflation, hearing anecdotal evidence as they report earnings and the higher prices. they're paying for inputs and wages. the higher prices trying to pass onto the consumers there's been a little bit of a freakout moment. you're a little bit more laid back about that. why is that? >> yeah, i am laid back about that because we don't know that it's worth anything more than a little bit of a freakout in this moment we're not going to find out if it's persistent until later the year, maybe not until 2022 that's why the fed it inflationa natural part of an economy reopening. it's a natural part of consumers showing healthy demand as demand increases and supply chains catch up to that demand, the inflation part might relax a little bit also i think inflation gets such a bad wrap there's a reason that the fed looks at a 2% target i think they'd be okay with a

little bit above 2%. they look at that because it represents healthy demand in an economy. now the big question is if input costs stay high, can companies pass those along to consumers in a way that's absorbable. now if wage increases come along, then it's a little bit more absorbable. people are making more money, they can spend more money. where we run into an issue is if the labor market doesn't recover and we continue to have persistent inflation, that's where the fed will get stuck between a rock and a hard place. we're not going to hear verbiage about that until probably fall. >> liz, good to see you this morning. maybe some of that zen attitude is going to wear off we're looking at markets down but not as much as earlier today. thanks for your time >> thank you >> andrew. coming up when we return, what yesterday's wild trading in bitcoin is telling us about crypto what is it telling us? at one point the digital currency hit its lowest level

since january 31st jon fortt joins us this week with his "on the other hand" segment. before we head to break, let's get a check on the markets "squawk" returns in just a moment dow looks like it would open down 140 pntois. nasdaq off 32 points back after this. lately, it's been hard to think about the future. but thinking about the future, is human nature. at edward jones, our 19,000 financial advisors create personalized investment strategies to help you get back to your future. edward jones.

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box. apollo announcing that co-founder josh harris is stepping down from his day-to-day role. the change will come after apollo closes its deal with athene holding he will continue to be on the board. co-founder and former ceo leon black left his executive role at the firm after review of his ties to jeffrey epstein. we know our friend jay clayton, non-executive chairman, i believe, andrew. i think josh is part owner of the 76ers. >> he is he is. transformation -- it's a serious transformation to apollo without leon black and josh gone, goes to mark rohan i think there was a point people thought mark was not going to run the company. he was not in line a couple of years ago. it was the opposite. going to be very interesting to see what happens there meantime, discovery ceo

david zaslav receiving stock shares the day before he received the sec filing. the cost of the conversion currently ranges from $35.65 to 3.33 invest in over a seven-year period it's still extremely volatile this year. meantime, crypto as bitcoin lost more than 1/3 of the value since last month's highs the current si funding before recovering a bit settling under $40,000. that kind of volatility has the story fundamentally changed. jon fortt is here to weigh in on both sides andrew >>. >> no. if you like bitcoin the second week of january you should be buying it here if you thought it was crazy then, you think yesterday's move

justifies that nothing's really changed the bull case for bitcoin is it's the standard bearer it's the needed piece of the future of digital finances that's why institutions have bought it. changing the way money works is messy. if you believe the world is moving to a blockchain driven future you know the volatility is inevitable is china going to embrace bitcoin? of course not. is elon musk going to deliver a disciplined, consistent message about bitcoin like some sort of crypto fed chair no, he's elon musk the people who understand bitcoin are going to keep their eye on the ball. once the noise of easy money and meme stocks is over, the revolution in digital transformation is going to continue. >> we haven't learned anything new about bitcoin in the past couple of days or weeks here nothing? >> well, andrew, on the other hand, all of the major bitcoin narratives took a major hit. this is supposed to be a hedge

against inflation. the future of digital capitalism this currency that lost 1/3 of its capital. this is a store of value i don't think so what about the argument that all of the institutions piling into bitcoin were going to stabilize? sure, tesla buys a bunch of it and elon musk kneecaps it and says he has diamond hands, not stable any institution holding bitcoin has to be thinking about managing risk right now. every week there is a new influencer hawking another cryptocurrency, safe moon, internet computer? there's even an off brand dogecoin, sheba inu. we'll have to have a crypto hunger games i'm not sure who president musk is rooting for >> so what else did we learn here did we learn anything? >> well, i mean, i think we learned that the story keeps

shifting to suit what just happened i'm still not sure besides, you know, the latest popular statement what moves bitcoin you know, we've got these backward looking statements that of course it's going to be volatile because of all of the fundamental characteristics of crypto, but i think investors as always have to figure out what they fundamentally believe about this and then stick with that. you can't chase the money. it's going to run you over. >> jon, i know you like to offer all the sides. are we -- is there a -- just a trend that is definitely going to move to blockchain and definitely move to crypto? the question is is bitcoin part of that? if we're having this conversation five or ten years from now, is the whole world decentralized? >> the whole world, no i don't think it is. you look at what china's done with blockchain. they've used it to get more control over how people are

spending money as for how this whole blockchain thing lines up with where bitcoin is priced, i'm not sure it matters at all. maybe it does. but, andrew, i still don't get it that doesn't mean that i'm right, that i'm wrong, i just don't know what's going to move this thing up or down in a given week i'm not sure i believe people can say they do. >> okay. jon fortt, both sides of the story. love it. appreciate it. good to see you. becky? >> thanks, andrew. when we come back, will the ford f-150 lightning charge up sales for the automaker? phil lebo takes a look at the company's latest push into the ev market. as we head to a break, take a look at the futures this morning after the fed's minutes helped stocks claw their way back an amazing fete for the nasdaq down 1.7 for the lows and down 3 points at the end of the day this morning down by 6 points.

dow is indicated down by 100 points but it was off by 200 points earlier this morning and the s&p futures down by about 7.5. "squawk box" will be right back. time now for today's aflac trivia question. this billionaire fashion designer got his start selling ties out of a drawer in the empire state building. who is it? the answer when cnbc's "squawk bo ctiesx"onnu go aflac!!! what the heck, troy - that's not your kid! the aflac duck is just covering for sophie. same way he got me money to help cover her hospital bill when my health insurance didn't pay for all of it. but this isn't fair! that's exactly what i said! but then i learned health insurance isn't even supposed to cover everything. wait...for real? for real real. luckily i had aflac. aflac!!! get help with expenses health insurance doesn't cover. go aflac! !mm-hm! get to know us at aflac.com. don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long.

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now the answer to today's aflac trivia question. this billionaire fashion designer got his start selling ties out of a drawer in the empire state building. who is it? the answer, ralph lauren. ford unveiling the electric f-150 lightning. its most ambitious new model in years and a key part of the strategy phil lebeau joins us with more. >> reporter: hey, joe. this is the next battleground within the auto industry in terms of whether or not people are ready to adopt evs boy, did ford make a big announcement last night.

they used the site of the headquarters in dearborn for rolling out the f-150 lightning. all electric pickup truck. goes on sale next spring the question a lot of people will have after looking at it saying, wow, that looks kind of impressive, what kind of performance will we get? how much is it going to cost starts under $40,000 $39.999. that's the base model. xlt, mid range, just under $53,000. if you want to go hogg wild you can spend up to $90,000 for the new f-150 lightning. what about the performance the range, 230, 300 mile depending on the battery pack. towing capacity, 10,000 pounds 563 horsepower more than enough if you're pulling around a boat, a rental behind you, whatever it might be it will also have the ability given the battery pack to power

homes. that's a big selling feature here the question becomes how many people will move over from a traditional gasoline-powered internal combustion f-150 to the new lightning version? take a look at shares of ford. when this goes on sale next spring you're not going to see a ton of sales initially but you will see people who will buy into this vehicle. the question for analysts over time will be what's that mix going to be? is it going to be 80/20? is it going to be 70/30 after a couple of years in terms of 30% lightning, 70% internal combustion a lot of that depends on the pricing of gasoline, whether or not you see strong reviews on the lightning. we'll talk with ford ceo jim farley next hour you do not want to miss this interview. we'll talk about the lightning, performance specs, how many people are going to make this conversion over to an electric pickup truck and one other thing, guys. did you see that they have a

frunk in this f-150 lightning where the engine used to be. that is now a frunk, a trunk in the front of the vehicle that's a big selling point you have a lot of pickup owners who say i don't like running around town having to put things in the back. the flatbed is important if you are a contractor or if you're hauling around landscaping tools or you're going out and getting some bushes to plant around the house, but it's nice if you're going to the grocery store to have that frunk. one of the neat features that will be a selling point when this rolls out next year. >> that's true pretty cool. i remember when tesla introduced the truck, there was some discussion about whether it really had the torque for pulling. is this as effective at pulling -- >> yes yes. the torque is -- look, with the battery you're going to get and because it's electric, you're going to have incredible torque

and that's what you're going to get here with the f-150 lightning. i think on the end of towing, i think that is not going to be a big issue. i think people will come away and say, look, it provides exactly what i'm looking for i think the bigger question for some people will be that range 230 to 300 miles am i comfortable with that because you have people who have a pickup truck who live in rural areas and even though they may not drive 250 or 300 miles every single day, they do want to know that if i have to go somewhere, can i do a quick charge or can i do a charge and get back by the way, there is quick charge capability with the lightning. >> there is. okay phil, we look forward to that. where are you today, phil? >> st. louis. >> i was kidding. >> oh, you like the arch behind me >> yeah. joke i knew it wasn't a rainbow like a really thick rain -- >> joe, it's graduation season, joe. you have to go to where the

graduation is. >> that is good. where is that tesla truck, phil? i haven't seen any what happened with that? >> they're going to be building it at the plant in austin. later this year we will see the first ones coming out, at least that's the plan right now. >> i think becky wants -- >> hey, phil, who's graduating do we have congratulations in order? >> my son. undergraduate graduation in st. louis. the bills continue >> fine catholic institution. >> phil lebeaus. >> fantastic. >> >> they are jesuits. >> excellent >> all right >> congrats. >> thanks, guys. still to come on "squawk box" this morning, jason trennert joins us to talk markets, inflation worries and the fed. later, the ceo of oatly.

first, as part of asian-american and pacific islander heritage month, cnbc is spotlighting business leaders, our contributors and on air anchors and reporters. here's option's play chief strategist tony zhang. >> try not to focus too much on what others think of you and let that shape who you are in your identity don't be afraid to go out there and explore and establish what your own identity is because american culture is so diverse you can really find and be able to take advantage of what makes you unique and pursue what makes you happy.

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both the s&p and nasdaq bounced off. the number is 4081 in the s&p 500. that's one to watch there in trading today. also checking out what's happening with certain stocks that are moving in the pre-market session right now kohls, bj's wholesale and hormel both of these stocks have had good runs. hormel catching up also checking out the entire cryptocurrency ecosystem and space, bitcoin according to coin metrics, 39,950, just about 2.5 up side. remember 30,000 or thereabouts is where we got at coinbase getting a bounce up 1%.

microstrategy up 3%, tesla with a bounce up 1% the overall transformation technology innovation cryptocurrency whatever you want to call it industries. ark innovation etf up 60% in the last year. the lowest 50 and 200 day average prices from its record highs, by the way, becky, still off 35% on that level there. keep an eye on those particular moves there especially in the ark innovation becky, i'll send things back over to you. >> wow dom, i had looked earlier and realized it was down 17% year to date i didn't realize it was off 35% from the highs yeah, something to keep an eye on. >> sure. absolutely all of those stocks we've been mentioning with regard to the cryptocurrency, maybe all part of that. >> everything correlating. dom, thank you. >> gyou bet. great to see you. >> likewise. futures this morning, you'll

see we're under pressure off the lows of the morning. dow futures down by 111 points nasdaq indicated down by 8.5 s&p futures down by 8. we'll be speaking with jason trennert about the wild swings in crypto and the market's losing streak. that's all happening when "squawk box" comes rig bk.htac 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.

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stock market, get some perspective on the big swing we've seen joined by jason trennert jason is chairman and ceo of strategis partners it's a baird company did baird say they wanted -- they're finally taking ownership. you've been there for a while. what did they say? we've been doing pretty well, we want to associate with you now we want to associate with that >> i think we finally made the cut and so i think, yeah, they would like that. we like it too

>> what are you thinking about next month across the board for stocks, bonds, commodities, crypto, what's going on? >> big picture stuff, joe, is that i do think even though there's been a fair amount of head fakes in terms of the move towards value, i think what's going on in the market now, my own opinion, indigestion you're seeing, i think people are taking the rotation to value more seriously, which is to say that we saw a lot of head fakes last year. this one seems real. it seems real because it appears the fed may be behind the curve. it's telling you it wants to be behind the curve but the prospects for higher long-term

interest rates are clearly having an impact on growth stocks that's number one. number two, clearly i think the fed is, in my opinion, going to stay easy a long -- a lot longer than people thought. i think there's going to be upward pressure on long-term interest rates and that hurts long duration assets like high flying tech stocks and then lastly i really think it's very hard, very consensus but it's very hard to get bullish on the dollar mainly because we have a twin deficit, trade deficit and a budget deficit that's approaching 20% of gdp now you have to buy something else, done a lot of other great options in terms of fiat currencies certainly gold, copper, lithium, cobalt, a lot of other things, hard assets you could buy versus the dollar that are decent hedges against inflation >> we talk and you talk and we're really fed focused

if you look at other than the private sector, it seems like the fed takes a lot of the oxygen not as much with fiscal policies and changes in administrations, changes in government but i just want to ask you this you know, i know you you know me. if we had to describe you you might be a less -- small government, low taxes, big private sector, less regulation. you've espoused those values over the years that you've been on >> absolutely. >> the journal of the day, phil graham and rick scott piece, biden's plans are already hurting the recovery i think it focuses on the benefits that we saw with that employment report that maybe some people aren't that eager to get back to work because they're doing pretty well at home. that's just the beginning. in total take the latest deal

we're talking about where republicans are saying 600 billion, democrats want to do 2 trillion through reconciliation, and they might think of the tax increases that we're talking about. think of all of this stuff that's happening do you worry about any of that or is that kind of all down the road we don't know whether it's going to go through or is there any trepidation in the financial markets that those things could actually come to pass? >> well, joe, those are two separate -- in some ways those are two separate questions two separate answers i would say. i worry about it a lot because one thing i've learned in running a company for 15 years is that people do precisely what they're incentivized to do i'm a big believer in the incentive model. if you're paying people more money to stay home than to work during the summer months, it seems like a pretty easy choice to me. so, you know, also as far as getting companies to invest productively, to invest in

capital as opposed to focus on financial engineering, i believe that the tax code goes a long way in doing that. i think the policy mix over really since 2008 has been much more skewed. this has been more true in democratic administrations versus republican administrations. it's much more skewed towards financial engineering as opposed to capital investment and i think right now you're seeing that i think in some of the more smoke stack types of industries, but it worries me quite a bit. i don't view people's income or corporate profits as some sort of dispensation from the government i believe those are private property government is there to serve us and i do think that generally speaking private markets make better decisions over the long term in terms of capital allocation than often unelected

people. >> how do you handicap it? there's an election coming up in less than two years. i don't know which way -- i don't think anybody knows. how much is this going to come to pass? does just talking about it put a damper -- it hasn't put a damper at this point. >> joe, listen, if the economy is doing what it's doing now, you know, a year from now, the republicans may not do as well as people think but i have to say that the way things are going, it seems to me that inflation could be a very significant issue in the 2022 mid terms which is something that -- i mean, i'm not sure i've been doing this long enough for inflation to actually be a big political issue, but in my opinion the policy mix right now would suggest that inflation is going to be a little bit more than transitory, that people are going to feel heat from it if that also spills into the

financial markets, you know, things go down, people don't like that. in my view it is way too early to tell but i would be betting on inflation being a topic of consideration for the mid-terms 2022 >> can you tell me when stimulus -- and right now everybody loves the fed, it's great. it's great i'm bullish. the fed is going to stay easy, fiscal stimulus, it's great. people got money in their pockets. it's going to be more stimulus it's great market is going to go up when does it turn to, wow, there was so much stimulus that we really screwed up and now interest rates go up, debt service goes up and suddenly there's a damper on gdp and everything else. when does that turn? >> i think it could turn in the next -- i would say it's probably not going to turn in the next -- it's turning now in

terms of inflation and the value of the dollar. in my opinion, the dollar is the most important price in the world right now. i would normally say that's u.s. treasuries but the fed is buying $80 billion worth of treasuries a month. >> you can't tell. >> it's not that important because it's being somewhat manipulated. you're already seeing it in the dollar you're going to see it more, importing more and more inflation and so i -- you know, it could -- i think most people tend to think the inflationary pressures are, you know, very well into the future and i'm not so sure about that i think we could start to see this, you know, towards the end of the year where some of the extra stimulus starts to wear off. new stimulus will take a long time to actually put in place and the tax increases will be immediate. so i think 2022 would be a very important critical year in that regard in terms of the policy mix and types of stimulus that we have. >> yeah. it's a real problem and people

have pointed out that we don't really know where the 10-year really would be. normally you say the fed can only control short-term rates with fomc type of stuff. with qe they do control. >> you're buying mortgages and you also have 12, $13 trillion of negative yielding debt globally >> so we don't know? we don't know whether -- we don't know whether the bond market is fine with all of this stuff? it's just fine as long as the fed says it's fine >> that's right. and it can -- you know, it can keep going if it so chooses. >> god there's a reason you're a thought leader a reason you're -- that you wrote that that's accurate. >> that's right. joe, i might have to have you give me a quote or something to give it a credibility. >> you write a book, i'm there for you. >> when am i allowed in the building >> soon. soon don't call us, we'll call you. >> okay. all right. good >> no, soon. i think very soon.

>> good. i'm sick of doing it here, you know >> i think next month i would say, but i don't know anything i don't know anything, but i think maybe next month new york's relaxing things now >> thank goodness. >> all right we'll see you, trennert, forward and backward >> he can't come back before i come back. that's the only thick. me first when we come back, the ceo of oatly joins us to talk about the company's growth prospects as a publicly traded company. that interview is next. and at the top of the hour carlyle group co-founder david reuben stein is our special guest. first though, cnbc evolve is back with a cyber security focus. that's happening next wednesday at 1:30 eastern time eamon javers will talk hacking with key government and corporate leaders, especially in the week of what's happened with the colonial pipeline.

go to cnbcevents.com to register "squawk box" will be right back. 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. ♪♪

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welcome back to "squawk box. oatly going public now a first on cnbc interview is toni petersson

congratulations to you on this milestone yvette for oatly it's been quite a ride over the past couple of years and quite a growth story kind of want to understand where you think we are in this journey, if you will >> good morning. thank you so much for having me here today we're obviously super, super excited. yeah, i mean, this is just the beginning. this is just the very beginning. we are extremely proud of what we have accomplished so far. the massive opportunity we have ahead of us, the runway and how we are building demand across three continents, right. on multiple channels from niche to mass and how successful we have been there. this is just the start so we're super excited to be where we are today >> in terms of valuation at $17 opening price, gives you $10 billion valuation as a

comparison beyond meat is at $6.5 billion tell us what you -- how do you think the investor community honestly should comp you, especially given the fact that every quarter from now on you're going to be giving your numbers publicly >> yeah. i'm sitting here in front of you, feel super confident about that the way we built our position, just think of what we do here, right? we're the local organizations we're building, local innovation, commercial rollout and the supply they're building out across three continents, right? i don't see no one else taking that leadership position the way we are we are really seriously ambitious about what we want to do here. >> tell us about that ambition in terms of product, product category how far do you think this brand can go >> hey, you know, if you look at the -- you know, the reason why we started as a company, it was to create the best milk, period. we didn't try to mimic

animal-based milk or anything like that. you know, we just wanted to do, you know, a milk that was better for people and the planet. now that's what you see. you look at the population today. 60, 70% of all the current users joined plant-based milk two years ago. in the u.s. last three years, 32% reduced dairy intake we know plant-base milk captures 55, 60% of those consumers 40% of our growth comes from new consumers. now the big change that has happened is the conversion and that is what we are driving. that is why the opportunity is so massive you look at the $600 billion category of grocery trade. put food service on top of that. it's just a massive, massive addressable market there for us to change which we know that we are driving. >> toni, let me ask you this though what percentage of your customers do you think are buying this product because they

think it's better for the planet versus whether they think it's better for snem and there are -- there is a bit of controversy about whether it is better for them >> well, it is, and we can discuss that but, hey, you know what, the way people approach this space is very, very different. we know for a fact that you need to deliver on many multiple components taste is definitely one. you need to taste well and it has to taste really good it has to be nutritious for you but the other two parts -- those are two things that has changed. emotional connection with people and sustainability credentials now all these four items matters to people today, especially gen z and millennials, and that's for certain. >> can we talk though about -- we've had a big debate every time we talk about oatly milk. i don't know if it's a running joke or what but we say is it really milk? is this really milk? that's one of the conversations

we have. the other is is it really better for us i know there's been a long-term question about the sugar breakdown in oatly milk relative to, frankly, coca-cola can you speak to that? >> yeah. i think that's -- you know, we've been living with that discussion for almost 30 years now. it is a misconception. you know, when you break down the maltose, that's exactly what happens. when you chew -- take a colonel of oats, you chew it, swallow it, digest it. that's what we're replicating with our enzie ma particular process. that's the beauty of it, how we replicate the process. milk is liquid food. we're one of the very few companies with an official claim stating in europe if you drink three glasses of oat milk, you lower or maintain your cholesterol. that is related to oatly only.

is it a better milk for you? yes, it is and that's also part of why we're so successful. there are the other items, sustainability really, really matters to people today. unless you connect with people, unless you're transparent and honest about what you do, you really don't earn their trust, right? so i think we have all those components. >> can you speak -- i don't know if becky's with us milk, soy milk, almond milk, oatly milk versus regular milk do you think of them all as really milk? we were talking about -- >> no. >> -- it comes from cows lactate effectively. >> yeah. i mean, you know, that definition is just stupid to be honest with you but, no, not all the beverages are milk and that's the thing it's pretty confusing to be a consumer today, right? no milk products are created the same differences between the crops. so, again, you've got to provide

with the macro nutrients, the fats, the carbs, the protein and the dietary fibers that we have, that we know that also people are lacking in the diet in the western world. but there's so many items out there that are just beverages, you know and that's a distinction between us and many of them. >> it's not just stupid. that's the actual definition of milk. >> yeah, okay. we can have a discussion about that. >> the definition of milk is an opaque white rich fluid of of fat and protein for the nourishment of the young or to exploit or defraud someone that's the definition of milk. >> let's have a discussion about why that exists, that definition >> okay. toni, we wish you a lot of luck. we hope to follow your progress. we hope you come on back we can debate bilk but i want to talk a lot more about the company. >> would love to. >> we look forward to seeing you

again very, very soon. congratulations. >> thank you so much thank you for having me. >> thank you you bet. joe. >> very good we need to mooove on before this becomes udderly absurd. david reuben stein and ford unveiling its all electric truck. jim farley in the first on cnbc inrvw. ay tuned you're watching "squawk box" on cnbc ♪ ♪ ♪ ♪ ♪ ♪

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good morning futures pointing lower and a big plunge and bounce back yesterday. the fed opening the door ever so slightly on the idea of pulling back from the pandemic era war footing and the carlyle group david reuben steyer will be with us to talk the economy, market, so much more ford looking to capture lightning in a bottle with an ev version of its best selling pickup truck a biginterview with the automaker ceo is on the way as the final hour of "squawk box" begins right now.

welcome back to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures down 106 points down earlier came back yesterday from big -- almost 600 point losses to close down a little bit. it's not just one day. it's tough to say where we are in an up swing, downswing, consolidation. let's dig more into yesterday's big market drop and rebound because it's something to look at historically and in terms of just the last couple of weeks. cnbc's senior markets commentator mike santoli joins us now we decided we're going to forget talking about tails wagging dogs i think it's just one big dog at this point, isn't it

like a st. bernard or something that eats a lot. >> well, for sure. i mean, look, i agree with the idea that this is sort of an indecisive little phase for the market once the short term up trend has been broken, the market is under a little bit of stress the trade's a little bit nervously but technically. s&p 500 on a year-to-date basis. pointed out we were set to open at last week's lows. that's where we spent the first hour yesterday and then bounced off of that. sort of in the 40-60 area. pretty good rally off of that level. still doesn't necessarily get you out of this sort of sideways mess that we've been in for five or six weeks, but only 3 or 4% off the record highs not exactly fatal. take a look at the nasdaq 100. you mentioned the big growth stock sort of came off the bench and did actually do most of the work in terms of driving that recovery yesterday it's a little bit more of a challenged looking chart

you have two big peaks this was that early september high it also matched the low in march. so, you know, if you wanted to look at a lot of stuff coming together in one place, a real test of whether big growth stocks are going to maybe swing back into favor or be less of a liability on the market, it's probably a little bit lower than in this area they have definitely been less crowded now, certainly less expensive than they were back nine months ago let's say. the bond market has not been sounding any alarms. this is the corporate bond market high yield corporate debt as well as high grade investment grade corporate debt. what you're seeing is the performance of junk debt more risky corporate bonds has been well ahead of what's going on with more safe corporate debt which really trades in line with treasuries more than anything else this spread is bullish in general. it's supported it has sort of eroded a little bit since march. you see investment grade has outperformed slightly in two months this is not telling you that

there's a lot of macro stress building up, people are worried about the economy or corporate balance sheets it's mostly about risk and reward and the opportunities left in equities in the valuations we're dealing with the offsets like growth inflation, joe. >> weird time, mike. you figure junk's going to do good during a rebound and resurging economy, but usually that would mean, well, then you've got to worry about interest, principle risk we don't have to worry about that either. >> not at the moment, no. >> that makes sense. my big million question of the day, mike, i don't know how you feel, is is the bond market truly telling us there's nothing to be worried about, the 10-year? is it unable to telegraph it to us because the fed's in there keeping it low actually is able to do it with qe >> there obviously still is some signal value in where long-term

yields trade how do we know that? yields triple in six months or something like that while the fed was doing the same thing it can respond to it if you look at net issuance of treasuries, because we've been spending so much, the fed is less a factor in the market than it would otherwise have been because you've had all of the issuance from the government so obviously qe is a headwind on yields definitely probably repressing yields to some degree. so are global flows into our bond market. we've been talking about that for a while, too that's showing up in the numbers in terms of foreign investors trying to capture some of the yields of our debt >> that was my million dollar question. >> million >> only a $900,000 question at this point after the last couple of -- 850, 900 thanks, mike. >> yeah. >> okay. becky? >> all right for more on the markets, the latest messaging from the fed

and the economy, let's bring in david reuben stein of course, he's the carlyle group co-founder david, you are an expert on the markets. you're an expert on the ways of washington that makes you the perfect guest because those two worlds are colliding in a big way much of that lands on what the fed is going to do, what they've been messaging, what they're saying, what you think they'll do next. i watched a great interview you did with jay powell. i didn't realize until that interview that you had hired him way back when. i just wonder what you think he's thinking as he looks at the markets, as he looks at what's happening all the way around >> jay powell is a very steady person he's not somebody that jumps the markets up and down every hour by the hour. when he was at carlyle, very steady, very good investment professional i think it's clear he's not changing on the dime what he's said is it's going to

take something more significant than what we've seen to date before the fed is going to change its interest rate policy or increase the discount rate. i think he's made it pretty clear while they're looking at inflation that's rising a little bit, probably not until the end of this year will you see any real policy change of significance i think that's what the market -- >> do you think that's the right idea >> that's what the market wants. >> the market would like predic predictability what business people want, tell us what the rules are, tell us what the way we have to operate is and we'll deal with it. the market is alzner vows, always jumpy the fed is trying to be a bullwart and say, look, we're not going to move every hour on the hour based on trading. he's unlikely to make changes in the near future in my view their comments on april are now public, abbut i don't think the fed is going to say we're getting nervous and we're

hitting increased interest rara rates. i don't see that happen. >> the fed is making that decision based on what it kind of sees in the economy, also what it knows the markets are looking to hear, but at carlyle, you have so many companies and you see the inflation that's kind of running through the economy right now in terms of the inputs, in terms of wages, in terms of commodities. >> right. >> what do you think as the head of so many businesses and somebody who really sees these numbers, is the fed right to be complacent >> i wouldn't say they're complacent, i think they're very careful. i don't think they're jumping around i worked in the white house a long timo unthat's terrible to . we're not talking about anything close to that. we've averaged under 2% for the last 25 years. if we could get above 2% on a consistent basis the fed would not be disappointed. when we went to college the average textbooks used to say

that 3 or 4% inflation was pretty standard and okay we're really only talking about inflation that might go above 2% we've had for some time and i think if it went above 2% for a while, it would be okay. if it got to 4, 5, 6, 7%, that's a different story. nobody is predicting that. i don't think inflation is a big concern now. certainly not anything compared to what we've had in the past. >> here's the argument though when you talk to people who do raise concerns about this, they say if the fed waits until it sees the whites of inflation's eyes, that it will be too late things will have ricochetted at that point the flywheel will be moving and it will be quite a bit tougher and more painful to stop it. what do you say back to that >> we're still in a fragile economy. we're still in a pandemic and a large part of the population is not employed fully and, therefore, i think if the fed were to do something now, i think the fed recognizes this, it's likely to increase unemployment to an unacceptable

level. i think the fed is weighing many things, not just the bond markets. it's weighing the impact on the unemployment rate. if the fed were to increase interest rates in some pr precipitous way, it would be not good for the economy we should get back before the fed should make a judgment in my view i think that's how they're looking at it. again, everybody who's a day trader would like to have things move quickly because that's the way they respond to things the fed tends to take a longer term position. i think, remember, we're talking about inflation, if it happens, that is maybe slightly above the fed's targets of 2%. we haven't had that on a consistent basis 2% or 2.5% inflation is not going to ruin the economy as much as people might predict right now. >> david, i know you're a long-term investor and not somebody who looks at any of the day-to-day moves but yesterday was pretty weird especially when you looked at cryptocurrency, decline of 43%

for ethereum you see moves and you wonder how much froth has built up in the markets. you wonder how much momentum has been driving things. what would you take away even as a long-term investor, you have to pay attention to some of these moves. >> well, remember, crypto has come from nowhere to be a force in the market. it's in effect a gold substitute for some and i have invested in not cryptocurrencies myself but in things that i would say facilitate the trading of it in various companies that are helping to trade or make it easier for people to be involved with cryptocurrency. i did that in part because i think it's here to stay. cryptocurrency is not going away just like gold is not going away yes, it had its ups and downs and yesterday was not a good day for it, but that's true in anything that is relatively new. i don't think you're going to see anything like crypto going away and disappearing. it's here and it's here because people in the market want something other than the

traditional currencies that we've had and whether that's right or wrong, it's clearly something the market wants yes, if you go into cryptocurrency, you should expect big ups and downs and big fluctuations if you're not prepared for that, don't go into cryptocurrency the idea that cryptocurrency is going to go away or the government is going to be able to stop cryptocurrency from something investors want is going to be unrealistic at this point. >> even if you're looking at some of those trading asperatuses, coinbase is down 40% from the initial public offering in the last month that's pretty volatile i'm not sure if coinbase is what you were investing in. that plays out across the market. >> coinbase's market cap is still relatively very, very high for a company that's relatively young. so i don't think a lot of people are worried that coinbase is going to be in trouble in any significant way. the market fluctuates a bit on

things like that and coinbase reflects that. i wouldn't worry about it as much as i think some people who are day traders are worrying about it i think it's a good company. it's likely to be around for quite some time. it provides a service. again, if you think cryptocurrencies are inappropriate or not something that's consistent with the way we operate our economy, don't invest in it i think it's a good substitute for some people who have some different type of investment other than the traditional investments. i think it's going to be here for a while. many people increasingly are looking at investing in this for some percentage of their portfolio. >> is coinbase one you invested in or did you invest in other ones >> no. i made an investment in a privately held company >> all right let's talk about the health of the market because, again, that's got to be something you're always gauging. if you're looking at buying companies, the cost have been driven up by what we've seen in

the marketplace. i'm not sure if that's the case still in the private market and then can you turn those companies around and bring them back for public offerings at any point, too how do you kind of gauge the health of each of those markets right now? >> right now the markets are expensive. there's no doubt if you want to buy a privately traded company for a buyout or a minority investment in a private kind of company, you're going to pay double digit, even multiples when you didn't have to pay that years ago. the prices are much higher one reason is investors are willing to take somewhat lower rates of return. because interest rates are so low investors are willing to take lower private equity returns than they might have five or six years ago. that's enabled people also because debt is relatively inexpensive to pay relatively high prices. the private equity market is in good shape it's relatively not that difficult to raise new money there are a lot of deals going on prices are robust. i don't see any problem in the private equity market.

i think what the private equity market would like the same thing the business community would like is certainty. tell us what the rules are i think to the extent congress can address the issues on infrastructure and taxes in the relatively near future and tell us where we're going, that would be helpful again, what business people really want is some kind of certainty. we'll have some kind of uncertainty until we know what congress is likely to do in terms of taxes and individual taxes and so forth and congress if they could address that in a bipartisan fashion, that would be good. even if it's not in a bipartisan fashion, just finish the task at hand that would be helpful for the markets. >> even if it means that taxes on businesses go up by 35%, they'd rather just see that than have to wait it out? >> i think the business community -- nobody wants higher taxes that i've met. most people want to have taxes lower than they are, but i think the business community recognizes that congress needs to pay and the government needs to pay for some of the things we're doing.

we do have a $28 trillion debt right now. we're running annual deficit of 3.3 to $3.5 trillion the business people have recognized at some point we have to pay for some of this. i wouldn't say business people are bigging congress to increase corporate tax rates. i think they recognize if we have an infrastructure bill it's paid for by corporate income taxes to some level. maybe not the same level congress has proposed. congress writes tax laws takes a while to do it if we can do it quicker than over a longer period of time i think the business community would be happy with that >> david, always good to see you. thanks for joining us this morning. >> my pleasure thank you, becky >> andrew? >> thanks, becky. coming up, we're going to go inside yesterday's massive crypto roller coaster ride and ask should investors be ready for more volatility. sky bridge founder anthony

scaramucci joins us. what does ford's f-150 mean and the battle for ev supremacy. ford ceo jim farley is going to tell us in a first on "squawk box" interview right here. come on back right after this. it 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.

coming up, which big name investors got hit when crypto sold off we saw a bounce in the day does that mean the pain is now over back up to 41 and change 41.5 anthony scaramucci from sky bridge capital will join us with what he thinks stay tuned "squawk box" will be right back. 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. ♪♪

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welcome back to "squawk box" this morning some of wall street's most experienced investors feeling the crypto whiplash after yesterday's big selloff and rebound. they all have exposure to digital coins. joining us to apes the question is crypto just too volatile to invest in is anthony scaramucci. former white house communications director, cnbc contributor. i think still, anthony, a bitcoin bull >> listen, very much so. i still think the bull market is intact for bitcoin if you go back over the different slides in bitcoin over the last 12 years, this is consistent with those slides having said that, you had a very big run up at the beginning of the year because of all of the expectation but, andrew, you know this better than anybody, most of the smaller players are using tremendous amounts of

leverage think of the gamestop situation. buy bit, we think over $8.6 billion of crypto accounts were flat out liquidated yesterday, which not only hit bitcoin but it really decimated those off coins. long-term bitcoin is bouncing back i think that's a flight to quality in the crypto space, but if you look at the alt coins, i think it's good for crypto and ethereum because they really got blasted, andrew. no, we think the bull market is very much so intact. >> anthony. >> remember -- go ahead. >> let me ask you this though about bitcoin and i want to get into ethereum and some of the other coins in a second. we had a couple of things happen over the past couple of weeks. we had the issue of climate become raised by elon musk, which was i think surprising to a lot of people. i think the view is if elon musk can't touch this, can certain institutions touch this. you then had the chinese

government make its statement that clearly had a huge impact on things. jpmorgan came out with a report suggesting actually that institutional investors are not running towards crypto, they're actually running back towards gold so you put those three things together and i just wonder sort of longer term, you know, what you make of those things because i would think especially the china piece and the environment piece would be meaningful headwinds. >> let's break them down on the ee llon musk piece, some that could be related to the business he's in where he's getting carbon credits and there's some concern around the sustainability of that because of what's going on in the information space related to bitcoin. the facts about bitcoin is more than 40% of the mining is renewable energy the overall carbon emission for bitcoin is 0.13% of the world's

carbon emissions so if you tie the facts back to what the claims are, they don't fit. and i think longer term as you know when the fundamentals don't fit the story, the story corrects to the fundamentals as it relates to china, i think that's a more interesting story. i accept the fact that china may never allow a cryptocurrency because they have a closed economic system and the only crypto krns si they'll likely have is a digital yuan that didn't stop the rise of facebook, a social media network or the rise of google, both of which had censorship problems in china. we think bitcoin is a fully robust monetary network scaling to over 110 million users right now, possibly 1 billion users by 2025 and so to me, andrew, i get the -- i get the conflation of the three different stories but it's not going to match the fundamentals long term or overly

at bitcoin you mentioned three great investors when we started the segment. dan lowe, we're an investor in dan's business, that's fully disclosed because we file all of our positions with the sec he said to me this morning, do we have diamond hands? the answer is, yes i think jpmorgan is right, however, that the saturation levels are what people thought at the beginning of the year related to absorption by institutions is not there yet. smart players like paul tudor jones, stan druckenmiller and dan loeb i think jpmorgan is right. sky bridge has 35 or so hedge funds in our series g portfolio and we're also tracking 1200 funds. with the soft conference we have at least 3 or 400,000 institutional investors we're

surv surveying. i think jpmorgan is right in that topic. >> in terms of the bull case longer term for bitcoin, how much does it have to become a true store of value for institutions to get to the kinds of levels, the 100,000, 200,000, 3 -- some of the bigger numbers if you want to have remarkable returns on bitcoin at this point? how much -- how much do the big institution vs to come into this >> well, listen, we've had remarkable r remarkable returns without a lot of saturation. you have 2% of the world adopting bitcoin now look at the math if you go to 4 to 6%, i think those coins because of the scarcity of them and there's a large group of people, including ourselves, that are holding the coins or as they say hoddling those coins, you can see the exponential liftoff that we're predicting i said to joe earlier in the year, $100,000 price target for

bitcoin. my friend and colleague kathy wood has a $500,000 longer term target i do think $100,000 is still achievable look at the way bitcoin has bounced over the last 36 hours it's a good sign. >> anthony and andrew, was it more jamie dimon or was it more jpmorgan that just was -- their track record on bitcoin is laughable. i was thinking back. has anyone been more wrong than jpmorgan and jamie dimon i don't know why we listen to them now jamie dimon -- >> jamie had his own view about blockchain. >> jpmorgan, right >> i'm not -- jamie dimon is a fellow tufts jumbo i'm not picking on jamie dimon. >> i know. >> i like his long-term track record, joe. >> they briefly switched to less bearish on bitcoin but they've always been sort of, you know, way behind the curve. >> look, they had $130,000 price target earlier in the year

i haven't looked at the research recently but i think if they're making the comment we haven't had the institutional saturation that was predicted on january 1st, i accept that look at what bitcoin's trajectory was without that. it's a scarce product. you get a little bit more demand here you'll see the liftoff that we're expecting. >> anthony, always good to see you. we have some breaking data coming across the wire in just a second we will see you very soon again. >> thanks. something could be higher. rick santelli standing by at the cme in chicago breaking economic data rick, is anything higher >> yeah. yeah continuing claims are higher, which is unfortunate, but let's start at the beginning of the story. initial jobless claims held at 444,000. a smidge below the estimate and a new fresh post covid low that usurps last week which is originally released at 473,000

now stands at 478,000. however, on continuing claims instead of a 3.6 number on the million, we end up with 3.751 million. so 3,751,000 this is not the lowest post covid number the lowest post covid number was back in the second week of april at 3,652,000 and last week had a slight revision but in the grand scheme of things it's not really a big difference philly for may, the philly fed came in light at 31.5. 31.5 is the lightest since february when it was a smidge under 29 so the data is a bit disappointing. maybe the bigger news is that certain states, of course, are taking a no take approach to some of the additional $300 federal jobless claim benefits most likely seeing the jolts number at 8.1 million jolted them into some of that activity.

joe, back to you >> all right, rick steve liesman joining us now with more. now we're counting the number of maybe at some point down the road we could consider considering maybe considering a plan so do we count those, steve, like we used to count those individual words in the fed statements >> you know, joe, i'm thinking about considering possibly answering your question. >> at some point >> at some point i'm going to think about -- no. look, there's a lot of -- there's a lot of talk about what all this means i think people shouldn't get too ahead of themselves. you know, this was inevitable. by the way, it was inevitable in these minutes. why? because, you know, months ts-- a month or more ago i put in charts the fed would begin

tapering in the summer guess what, this is the april meeting which is the last meeting before the summer. so the idea that they were thinking about possibly talking about possibly thinking about discussing reducing qe in the summer was spot on it already was in the works. so the trajectory or the schedule, the calendar that people had i don't think has changed very much. i don't know if rick wants to back me up on this i look at the 2-year note, pretty well behaved at 15. i look at fed probabilities, still have the first hype fully priced in january 2023 i look at krishna guhan and others they say the fed may taper if there's a meeting in the summer en route to saying it's going to begin tapering, i don't know, sometime in november to january period so nothing has really been accelerated all that much. maybe yesterday's comment which, by the way, was as you point out

in your very funny question, conditional upon rapid growth of the economy, maybe that means the earlier time line by a month or two is in train i don't think it changes things very drastically just quickly, joe, to light a fire under rick. i will point out that everybody who's so concerned about the extended benefits keeping claims up, it's continued to come down after the extended benefits were in place and you also keep comparing the jolts thing of 8.3 million, which is a march number. that's the month thatbenefits were extended. you can't have extended benefits at the same time let me just -- at the same time you're saying they're reducing people taking jobs, at least not at the moment. that may prove to be true. i'm not ready to make that call. >> rick, you referenced -- do you think behavior -- are the 2-year and the 10-year free to go where they'd like to go

>> a picture of paint drawing. yeah, the 2-year note is not very exciting. the 10-year is not all that exciting with the 80 billion that they're buying every month let's look at bund yields. 2-year highs currency is at a 4.5 month low the 4.5 month low when you're under 90 in the dollar index, you're half a block away from levels we haven't seen since late 2014. i disagree with steve pretty much on everything but it doesn't pay to get excited i don't pay that much attention to fed officials because i don't believe they give us exactly what we deserve with regard to what's going on in the economy i think they're covering their butt to some extent and i do think that when i look at the markets in general, i don't know, it's hard to get excited about any market with such high

government involvement in the pricing. >> great thanks, rick. >> any questions >> lots of questions, just no time never enough time. becky. when we come back, ford ceo jim farley joins us live to talk about the rollout of the company's electric f-150 pickup. and tomorrow don't miss iac chairman barry diller at 8:30 a.m. eastern time rit ren ghhe o "squawk box. we'll be right back.

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cnbc headquarters jim cramer joins us now every day we're -- it's like a -- it's episodic, jim. i don't know where the hell we are after yesterday. that nasdaq comeback was pretty good but where are we? >> it was a serious comeback early morning it was going to try to be a retest i think there's too much good news retail numbers are pretty good employment numbers were good the interview that you're about to have in two minutes is going to define things because the idea that ford is back, and it certainly is under farley.

he has to talk about commodities and the semiconductor problem. we're talking about big orders, comeback, feel good story that is a lot better than talking about ethereum or someone who tried to talk to me about ripl, why i'm more positive on ripl. i'm more positive on the f-150 one is more tangible than the other. >> one someone told me that the front trunk, it's called a boot. becky, you remember, ted lasso, there was a long discussion. >> boot and boots because the cleats are boots. >> british influence i have to tell you, joe, i am still stunned that our colleague andrew diamond hands sorkin has suck couple to the lingo of what does it mean what does it really mean >> can't beat 'em, join 'em. he's still a suit. >> paper hands, diamond hands. i don't have pin stripes today >> i don't know what to say,

andrew you need to come in with -- i almost said kind of a beater a t-shirt that is -- really makes the statement. then you would be one of the mob. don't you want to be part of the mob? >> who votes for that? andrew will you -- you can't see me -- >> if you stay where you are, i'll get you a t-shirt i've got one for you. >> i had a guy last night at the bar, 100 to 1 leverage in bitcoin and wanted to know what is it with me and my conservatism. >> ouch. >> i didn't want to buy the guy a pacifico i wanted to buy him 1/7 of a pacifico he wants to know why i don't like 100 to 1. i don't know, andrew, diamond hands, you tell me why i don't like 100 to 1. you're stunned >> paper hands paper hands. >> paper hands rock hands and scissor hands that's okay. we acknowledge them because they're youth and youth is not

being wasted on youth. >> is it rock, paper, scissors, which way are you going? or a match >> that was good we need musk to come out and say that farley doesn't have as many orders as he does for his cyber terrorism -- cyber truck. >> right >> i'm with jim farley what a family. >> then we have tom farley who a lot of people are excited he was going to be on very confusing. >> what a show you guys have today. the show is going places and bootch, mooch. >> the show might work it might work. it's only been 26 years. you're catching up, jim. you can't do that. it seems like everyone is catching up. >> too much fun this morning i've got to be careful you are having too much fun.

especially paper hands. >> rock, paper, scissors. coming up, the ceo of ford joining us on the new electric f-150 lightning. big first on cnbc,ir fst on "squawk box" interview is next we'll be right back. ♪ but entrepreneurs never stopped. ♪ and found solutions that kept them going. ♪ at u.s. bank, we can help you adapt and evolve your business, no matter what you're facing. because when you close the gap, a world of possibility opens. ♪ u.s. bank. we'll get there together. ♪ [ humming ]

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ford making a big bet. phil lebeau joins us with a biggest. >> good morning. let's bring in jim farley. quite the reveal at the headqua dearborn a lot of people have confuse and they've asked me are you still going to be building the internal combustion f-150. and you will look into your crystal bill two years from now, what do you think the percentage breakdown will be in terms of number of people buying the lightning versus the internal combustion f-150. >> >> good morning, phil so excited to talk to you from the very place where we revealed the new f-150 lightning. look, we had 20,000 orders already. 12 hours after the reveal. so the response has been great we offer a hybrid f-150, a turbo-charged eco-boost f-150. we have diesel super duties and we now have the lightning.

you know, we don't know what customers are going to choose. this is america's best-selling vehicle. so if there is one vehicle that's going to give us an indication of whether these evs are going to take off, it will this be lightning, and as i said, with 20,000 orders already, we're off to the races. >> you've got an announcement we're going to be making in a few minutes with the korean battery technology company sk, you're not officially announcing building batteries together but it is a memorandum of understanding, at least the early indication give us some indication how quickly you plan to ramp up battery production here in north america, whether it's with system k or the work you're doing on your own. >> well, a couple of things. first of all, we have three electric vehicles that ford's going to be out in the next ten months the mach-e sold out for several months we have 70% of the customers new. we have the new e-transit coming at the end of the year america and the globe's most

popular van. and then the lightning coming next spring. in the next ten months, we will have these three high volume vehicles and we need batteries so yes, we're investing. we're going to insource this know-how that's raetly critical strategically for the company and it won't be the last area of technology that we insource and bring into the company, we have to insource our embedded software and hardware for the sensors. we have autonomy there's a lot that we need to insource, including batteries, that are too strategically important for the company, and the building material costs are so high, you need to bring the costs high. >> this comes at a time when you know the chip crisis is just killing you guys on the production side. you're cutting production by 50% in the second quarter. there are people whispering on wall street, is this truly the worst of it for ford, and the auto industry, and this quarter. is there a chance this extends further into the third quarter >> we don't think so

we think the second quarter is going to be the trough of the chip impact. why? because we have this facility renesys, the facility in japan, that went down, because of an earthquake, and subsequent fire, and they're back up and running now. so they're ramping up. they're on their plan. and so we're increasingly confident. we are being conservative in the second half. we think it's wise for us to count on not getting to 100% of the chips that we need, we're calling it around 200,000 unit impact in the second half. but far, far lower than the second quarter that we're seeing, and the demand has never been stronger, so i think our day's supply now is in the mid 20-day supply, which i haven't seen ever at ford. >> and that has the dealers worried that they have people who come in, and they know they're not going to be able to get a vehicle, as they would have a year ago, fairly quickly. are you worried that you're leaving too many sales on the

table? >> no, i'm not worried i'm not worried at all we have the freshest lineup in north america. we have both broncos, we have the machen e, the new f-150 ice, we now have the lightning coming, or the e-transit coming, we have a few more surprises later this year, new product, phil, we haven't seen a ford lineup like this in decades. >> and yet at the same time you're being pressured not just you, the entire industry, with commodity prices the inflation that is filtering through in terms of raw commodities, as well as those that have been processed, that pressure, tell me a little bit about what you're seeing on the production side. >> we've seen over a billion in head winds on steel and raw commodities. now, it's heading north of that, but starting to stabilize. you know, our contracts lead off over time, we do that on purpose, we have some hedging on our commodities, so the impact will really be felt in the second half of the year.

you know, the pricing we're seeing in the market, because of this new lineup at ford, is offsetting that, plus our cost actions in the company our run rate for the company is improving in north america but yes, we're seeing inflation. it's hitting our industry. so far, the team has done a great job offsetting that. it's just, it's what we're all facing with, and our team is very resilient >> hey, jim, tell me if you could, if you were there, how much resistant was there by the secret service to let the president get inside the lightning? you know, we all know, secret service did not, they do not want presidents driving vehicles tell us a little bit about the, that moment when he said, okay, yeah, i want to get in and i want to drive this >> it was really interesting, you know, well, first, we showed him the vehicle in confidence because we haven't revealed it at that point, and he's like i want to get in and the secret service is like no, mr. president, we don't want you to get in, and he looked at me and i said you should get in

and so he jumped in the vehicle, and he was playing with the technology, he was in there for about ten minutes. and then in the middle of his speech, he goes i want to drive this car and everyone kind of laughed, and he's like i'm serious and then i got a tap on my shoulder, hey, the security said you got to get in the motorcade, we're going over to your test track and i said okay, so we hurried over there at 90 miles an hour and then the president gets out of his limo, he jumps in the f-150 lightning, and i want to get in with him but the security people said no, the president's driving, we'll be in the truck and so he said what should i do, and i said floor it. and that's exactly what he did he had a blast he was loving every minute of it >> fantastic jim farley, thank you so much for joining us first on cnbc this morning from the headquarters where they introduced the f-150 lightning, andrew, it goes on sale next spring, and he hit on the key point there, they're going to

have electric and hybrid and still making the internal combustion f-150 it will be really interesting to see what the split is two years from now that will tell us how much appetite there is in this country for electric vehicles. >> okay. phil, thank you for that great interview. and that great story about the president. love it. love it. love it. meantime, really in response to jim cramer here, i need, he said to wear a t-shirt, take the banner off so you can see, this is in honor of charlie munger, actually >> move up a little. >> here it is. rat poison squared i thought you'd appreciate that he said wear the t-shirt. and i'm wearing the t-shirt. there it is. you asked me. >> it's@andrew r sorkin, right it's not andrew sorkin it's andrew r sorkin. >> i can see these comments.

>> i can be like elon. i can be like elon i can have diamond hands and be critical at the same time. right? >> and dance very well, too. >> i can do both so i have, i have great, i have great admiration >> i want to see the comments. i want to see. you may be up to how many i have, what did i say, becky, 4400, i think. >> this is why charlie munger doesn't have a twitter account but he does have a phrase, and this is, i don't know if he gets royalties for this t-shirt or not. it could be a meme and it's not going to be explained. >> i have nothing further to add. >> you're asking for it. it's going to be a meme and it's not going to be explained that you're just illustrating a point. >> illustrate, there is another view. >> this way. >> the t-shirt by the way, becky probably know, it's off the record, but becky knows where

the t-shirt came from originally. >> i do. >> but we probably shouldn't talk about that on the air what did you say >> i do remember, i do >> you like props. tequila, like a fancy bottle of tequila there, and if i mention seltzer, you bring that out, you got to turn the camera around and show us the other junk you have sitting around. that's from like three years ago, isn't it? >> becky knows everything. it's from about three years ago. four years ago by the way, instead of buying, if i had not bought in dumb shirt but it actually bought bitcoin, think about what it would have been. >> bitcoin went to 62,000 and all i have is this stupid t-shirt. >> that's pretty much true. >> a final check on the markets, and bitcoin, which is now almost, it's rebounded a little bit, way down from where it was, and you can see that the nasdaq kind of leading the way, it did yesterday, as well, with that nice rebound, and we also, we

always watch ark now, can you believe that, that should be on the stack every day now, there's bitcoin, we watch ark, but we'll see what happens, 10-year, still well behaved but is it really? that's a question we kept asking all right, we're going to get, head over to cramer permanently here, he's made a couple of appearances, make sure you join us tomorrow, "squawk on the street" is next. good thursday morning. welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber, futures pretty steady, nasdaq remains on track for a fifth week down, something we've not seen in about nine years markets wrestling with bitcoin volatility, retail earnings, and another post-covid low in jobless claims our road map begins with wall street's rollercoaster the nasdaq is on track for five straight weekly losses and crypto stabilizing plus shares of cisco are under pressure this morning. this despite high pandemic demand for its products. the compan