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 company delivered a cooler

than expected forecast jim just stuck his tongue out at that and it's electric. we're betting on battery power, unveiling a new fully electric version of the most popular pick-up truck in america carl >> interesting, guys, to listen to jim farley talk about those supply chain squeezes, jim, which you talked about with chuck robbins on "mad" last night and it sounds like so big players are starting to use their heft and weight to pressure the suppliers >> a great call. one of the things that cluck robbins ceo of cisco said last night, he realized this is going to be a tough quarter, this is the quarter where the supply chain people did their absolute best, he's saying not necessarily the trough but saying 2022 could be a trouble to get chips and last time he said really just 2021. i cannot believe how bold farley was. just so bold >> from cisco already? you're changing the subject from

cisco already? >> they both talked about supply chain problems and farley is talking about this being the trough so this quite an optimistic view david, if you can get the trough of the chip shortage, and a lot of that is the plant in japan that went back online, and you're going to see much better numbers from some of the companies, where numbers were taken down, with the chip shortage would last a full year. >> extended perhaps into next year. >> but chuck didn't say that. >> kind of indicated as well that you thought the bottom was coming >> and trough, i felt that, to some degree, because the companies themselves are not static they have applied materials coming up and you will hear that they will produce enough machines to therefore make enough chips i think the shortage is coming to an end this quarter >> wow and in light of what we've already talked about, the last few days, with lumber, jim, oil is on track for the worst week since march, down 4%, we're in the back in the low 60s. i assume you think that's a good

thing, right that some of these squeezes are going to end up potentially proving powell right. >> i don't think it's a good thing. i think it's a great thing, carl i think the collapse in lumber shows how thinly traded the market was and not what the home builders wanted obviously but it did impact believe it or not home depot's earnings. and i see a lot of different, it's a trickle but each day, cop area little weaker and i happen to have dr. mark bristol on tonight, they are producing full-out copper which is going, david, copper is a by-product of gold, so i think copper is even down i don't think the freeport people, you interviewed freeport - >> we had richardson on last week and very enthusiastic. >> i would wonder if he is less enthusiastic a 10% decline. >> a 10% decline although longer-term, it wasn't super cycle they were talking about, it was consistent demand as a result of the additional demand from ev, the copper useed

so often in the batteries for example. >> look, there has been no substitute, and even, you know, your buddy - >> don't even start. really my buddy the man you interviewed 20 times and i interviewed once got it quantumscape is what you're talking about. >> quantumscape indicates that there is no good substitute yet for copper and that's a problem, david. because jagdeep singh, a very thoughtful man, is saying look, there's a lot of copper being used that's the one the one flaw in the ointment, carl, is that there's no substitute for copper. i talked to the fourth largest waste company last night, people are going to the, back to the, carl, they're going back to landfills and pick out the copper that was something that happened during the last peak in copper that's why copper is so vulnerable you've got freeport expanding. the gold companies expanding and copper pickers going to the landfills so i think there's a

developing top in copper despite ev jay powell. >> as we said, jim, at the top, dealing with the bitcoin volatility i know you noticed this note out of deutsch this morning which they basically said, that bitcoin has gone from trendy to tacky in the face of a few weeks, they say it happens in fashion all the time and in their view, it's an example of how you can quickly become passe. now deutsche has been relatively bearish on bitcoin for a while but this was an interesting note. >> i loved that note it went basically from, david, you'll recognize this, from ralph lauren to tjx. it really did. and that to me is a sign of the times. i mean i know that yesterday, there was action to move bitcoin back up, because the people were so invested in bitcoin, can't have it be down 30% in a day because that spoils the narrative. >> well, it worked because it did move up during the course of the day and as we can see, it is poised for a gain today, or it

is againing already today. >> but you know, i had someone talk last night, about having to take bitcoin at 100 to one got 100 to one leverage. i think that sounds almost like systemic risk, david, when you can borrow 100 to one. >> that's pretty high leverage but when currencies, typically you can do that as well. >> right and i want to know whether it is a -- >> typically currencies don't move 20% a day the dollar moved, i don't even know, what a quarter percent in a day. >> you yesterday brought up, david, the chinese cutting it off. i've got more people telling me that the colonial pipeline ransom ware has stepped our government's influence in trying to figure out charlie munger-like what's really going on with the currency and maybe the scrutiny of governments is hurting the currency, or the asset, or the -- >> certainly the chinese scrutiny and their desire to potentially develop their own digital currency that they might

mandate as what you have to use there, would be a blow as they continue to crack down in various areas not to mention of course, even on some executives and the like, i'm sure you saw the ceo - >> unexpected. >> 38 years old. >> we have to start, the prc does things that are unlike almost any other government. they are in charge of ceos i think they're on the compensation committee they're everywhere, the prc. but that's because it is a communist dictatorship younis yu would say communist dictatorship, they put a button down and they hold a button down and they don't want the chinese to hear that phrase. >> they had obviously very strict things to say about cryptocurrencies not really a currency at all in their view i wonder, jim, when you assemble all of those bear cases, esg concerns, ransom ware, leading to regulation here in the state, the chinese obviously hate it, what is the main concern if you had to choose one >> i think the main concern is

how hidden it is now, i know blockchain is terrific in the power, being hidden but the lack of regulation is causing the irs to be unsure, you have to check off a box whether you did bitcoin, and i think gary gensler has so much on his plate, who knows >> so much. >> david, this thing, this is not a meme, david, this is a major business, and a lot of these entities are paying 6% interest, if you hold bitcoin. 6% how are they able to afford that isn't that almost like glen fed, remember the old days of glen fed, al fed -- >> charting it. >> you're getting it i'm getting 6%, on holding my bitcoin. i earn interest on it. i mean it's kind of like nirvana. >> the s.e.c., to your point has a lot on their plate, gens ler,

looking at spacs, cryptocurrency, and looking at the gamestop scenario and what happened there there is no shortage of things for him. but thankfully is he thought of as a very rigorous fellow. >> they're kind of overwhelmed the previous guy - >> he needed a lot of staff. >> he needed staff. >> but the laissez-faire, i think gensler has to hurry up. >> what happens if there is a giant hedge fund, not unlike david, you know archegos, what if there's a fund that is $100 billion that was fooling around with, that and all of the different banks didn't know about it, and deutsche bank, credit suisse may not have known about it - >> that would have been a scary scenario, particularly if they were leveraged to that extent. although again is, it systemic no not the case >> why are you so -- >> they have to be connected they have to be really, it has to be deeper inter-connection, right?

long-term capital i guess to take you back to a long time ago. >> 1998. >> well, anyway, carl, i just think that when i saw what happened yesterday, i found it a little unnerving particularly because this complex of the wood stock, because that's tesla, musk who turns out to be maybe anti-crypto for all we can tell, and then ethereum, all of the different, doge coin which of course is just a farce and the next thing you know it's built into the s&p, and once we've kind of got a handle on it when bitcoin came back, the nasdaq came back, and i don't want to see all of these inter-related, carl, that's frightening there's real companies in the nasdaq companies like microsoft whose stock sim pacted by doge coin >> yeah, because we did have some fed officials yesterday, might have been bullard, i'm not say, saying they didn't find crypto systemic as you put it.

and futures, overall market price action kind of looks crypto. >> bullard and i have come to terms. remember the period, david -- >> oh, yes. >> a number of years ago. >> a serious interview >> i ended that, i ended that, i made peace >> okay good >> i did i became ten bears peace. but outlaw, jessy -- you wouldn't know that anyway. there is no doubt in my mind, when i first saw, amd with the $4 million buyback and no one cares and the price of bitcoin started coming back and suddenly people were buying amd what was this? >> we were talking about that yesterday, jim, the connection of crypto and the broader markets. >> it's insane >> it might be, but you're not going to deny that there isn't one. >> just the opposite i'm saying that bitcoin is your forward -- and even oil, why are

we focused on things, like the fundamentals, david, i mean what do they have to do with anything, if bitcoin's 30%, you know, here's one, david, go back to arithmetic and geometry, what happens when you go down 31% and then you go back up 30%. are you even >> no, you're not. >> i rest my case. >> not even close. >> i rest my case. >> 100 down to, you know, yeah - >> yesterday was a day -- virgin galactic is going to be able to launch its whatever, exactly when it said it could do it, as opposed to delaying it i mean, carl, why are we, i mean let's say you're chuck robbins, running cisco, are you shocked, a giant company, it's not nearly as important as what happens with ethereum. how did that happen, carl?

>> jim, i totally hear you i'm just looking at some of these headlines that are flowing in, jim, one, i mean just to your point about overall fundamentals, google opening a physical retail store in new york city, david, one more point that kind of something we see, slow recovery. >> they're not selling waymo android? >> they're selling the browser >> i think they're selling you a nonfungible token of the desk of ruth - >> does she even have a desk. >> nonfungible something >> they always move around a lot. >> carl, yes, that's good to hear any retail that is opening in new york is all good we're happy to hear it we're happy to go visit. mask or no mask. so that's great. i have no idea what will be in the google store but i look forward to finding out >> yeah, in the meantime, guys, we got some upgrades of chipotle, walmart, a double

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last night ford officially unveils the new electric f-150 lightning pick-up truck, pricing between 40 k and 90 k. powered by two electric motors and a battery package instead of a traditional gas engine, the two battery options have

targeted ranges of anywhere from 230 to 300 miles here's what jim farley said about the truck this morning on "squawk." >> we have 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's one vehicle that is 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 >> so far this morning, jim, the verge, their initial impression that the truck is stunning in their words and then bill ford tells the times, look we're not electrifying our fringe brands, these are our core brands and use as evidence in their commitment to lech friction. >> this is what people are talking about.

they're talking about farley you know what farley is when you listen to him, he is so interesting, they used to call him car car, his middle name, jim car car farley >> got it. >> and carl, his love for vehicles is so exciting. it's so unusual to me, mary barra loves cars, and loving vehicle, farley loves it, i almost feel like that we're kind of starting to hear about farley versus musk in a very serious way. now, when he was on "mad money," he talked about that, you know but i think the cyber truck in austin, i'm not kidding, the cyber truck in austin will get a real money, real run for the money from car car. >> austin being tesla. >> he hasn't bought a house there yet. >> focused on cars musk has many different things >> musk has a lot of different interests. >> did you hear the super duty diesel and then talking torque

food i mean i think the previous guy, who was a very good cabinet maker, i don't think he knew what torque was. >> former ceo. >> came from steelcase >> the guy new cabinets better than anybody in america. >> cabinets with wheels. >> flying cars on the tape today. >> and i think it is wonderful to tell the story to hear a guy telling the president to floor it isn't it great to hear a guy from detroit actually into it. it's so exciting. >> of course, the big question is whether or not the traditional pickup market has been overlapped with what would be an ev buyer, and i wonder how difficult that's going to be from a marketing standpoint, to convince some of these long-time f-150 fans to give ev a try, right? it's a commitment. >> i think it's going to be, and i told this to jim, who is a

tremendous lot of fun, it will be a new group of people, and i don't know about the shift, and good for small and medium sized businesses, and it has to have a small circle as phil lebeau reminds us, not a big range and people who have never thought about buying a truck, they are going to be drying this truck, with the boot in the front, with the excitement, david, this is a whole new group of people being introduced to the f-1r50 >> okay. we'll see if that happens. got to keep an eye on that water usage cutback in taiwan. when it comes to the chip questions, jim they're out there. pretty significant >> it would be great if you just said farley -- >> sorry, and now i need to go to carl. >> you don't need to do anything, but we will take a break. we'll get to later this morning later on "tech check" morgan stanley adam jonas, talking about the f-150 and tesla and

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let's get to the mad dash, you mentioned ralph lauren earlier briefly and now you want to give it a little more time. >> you see these stocks, they're down in pre-trading and i say give me a break, patrice la vay has done it again, he got rid of club monaco and moving very aggressively into the home at a higher price point than rh, david, and the core clothing business is on fire, it's done a really fantastic job, reinstating the dividend which i think is important, and you know what, they've accelerated digital, they have a terrific portfolio of lifestyle goods and

balance sheet is terrific, direct to consumer, on fire, and i just think that this is the kind of thing that's been happening in corporate america, these retailer, and a lot of the stocks are up, but the stocks ran ahead of the good news, which is why ralph lauren is down this much but people buy ralph lauren, down about 5.5%. people will buy it today they're buy it around 125. >> do you believe this theme that at least we're hearing from some analysts in retail that apparel is going to be quite strong >> that's really the plan. glad you brought it up people want to look better than they did before the pandemic and ralph lauren is a way to show that. that is really a major theme it's not back to the old days. i it's back to better-looking stuff. >> why do you look up and down at my suit. >> trying to figure out if you're looking any better. >> what color is that? >> david, i got it in milan. the last day of february is the day when they burn all the suits they don't get into the -- half

price. >> i can't believe they burn suits. >> you told me that and obviously it's true. >> this is a good-looking suit. >> it is very nice-looking suit. >> not a ralph lauren. >> i have a 15-year-old ralph lauren that i wore in february and you didn't say a thing. >> and i won't say anything about those shoes either. opening bell coming up

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square space looking to rebound a day after a tough wall street debut the web site building and hosting company still trading below the reference price of 50. meantime today we have oatly going public, pricing at 17, valuing the milk maker at $10 billion, and interesting debate about the definition of milk with the founder >> yeah, i think it's just ridiculous okay, so white wave, maybe david remembers this, white wave, remember that, in 2017, paid 12.5 billion for it, and ten times the revenues of the oatly, and i just say, david, this is

more of the absurdity that we find where bankers come up with prices, and it's based off of the previous rounds, and people buy it, and then they end up like a year from now with oatly all over your face >> people like putting in t-in their coffee. >> i had it this morning just to see. just to see how different it was and it was fine. but the flare milk, david, i'm not kidding, white wave, that's so i soy, a real company, paying 10 billion for this thing? >> no, but the public will >> why >> a good story. >> because they're told. they're told to. >> they're told to >> well, that doesn't last long then, jim, if you're correct. >> thank you that's all i have to say that's all i have to say you have beenvery tough on me. [ laughter ] >> he's kidding. >> look, look at square space, there's a company that is every

bit as good as those guys, i use wicks, do we need square space i don't know we have space, which is virgin galactic and we have square which is a very good company and put them together, what have you got? a company not as good as wicks >> you have skeptical yesterday, jim and certainly that was born out in the first day of trade and we'll see what happens today. here is the opening bell big board celebrating an ipo a construction software provider and the nasdaq also celebrating the ipo, with a milk maker otly. >> and another relatively new brand, petco, close to your heart, 17 cents beats 9, raised the guide, added a million customers in q1. >> i think the issue, and we'll speak to them, it is chewy chewy has that tremendous renewal annuity form of profit, basically, where they send it to you on automatic and what

happens, i know david has a dog, is that, david, when you get a dog, you don't have to constantly refresh and get more food and it comes to you with chewy and even if the quarter looked like a blowout, they're coming prepared and chewy's got it all over them i think that's wrong i think they have other things they're a health care company and be wear, when you blow the numbers out and the stock doesn't go up, it's because people are saying i already have my pet food company and the pet food company is named chewy and by the way, founded by none other than ryan cohen. >> ryan "gamestop" cohen. >> ryan savior cohen >> take two. not sure of the business model of gamestop since all of the games are being delivered digitally. >> we've been wondering about that business model for some time and you have discussed many ways you believe they could transform themselves. >> andrew paperhands sorkin talked about going to the moon and i think we're at the moment where we're questioning meme

stocks and questioning crypto and woodstock an questioning things that worked well for the last 14 months and instead going back to cleveland clips, so i don't know, carl, it's not as exciting as watching adam aron furiously sell stock to the meme people, but they sold stock, too. >> carl, are we past the joke stage? are we back to things like fundamentals and stuff like that like amd buying back stock or just stay with ripple >> we're going to find out, jim, certainly these 30, 40% corrections, as you say, have had people asking more serious questions. we haven't gotten to, speaking of fundamentals in the consumer, gotten to kohl's, they beat, raised the guide, 1.04, crushes, and another string of evidence points in retail >> this stos stock has been relentlessly going up

relentlessly and in the 30s, i said i can't fight it anymore, and it keeps going up and kohl's has chaps those brands and they don't have the first-ranked ralph lauren, ralph lauren doesn't sell into that, so it's important, nike does nike stock has been a complete dog. ever since we started talking about the people's republic of china, and whether nike's going to have to play its hand in terms of showing, like it did with kaepernick, that oppression is not the way nike plays. >> isn't it the subject of the conservative ad campaign about woke corporations? isn't that one of the things they're going after? it's very interesting time, as we pointed out many times over this last, well, year, more than year, you know, period of time, where corporations are choosing to engage. in issues that they typically might not have but are under pressure to do so by their customers by their employees and also by certain parts of

their shareholders. >> the customers >> yes. >> who are always right. they are asking questions. >> they are. and the employees are very important here with names like this and many others in terms of what the company, what the ceo will choose to do. >> what's the number one customer satisfaction, employee satisfaction company in the country? >> i don't know. what is it >> cisco who takes, by the way, chuck robbins wildly takes very powerful stands on issues. >> if i'm a shareholder, am i happy? am i happy with cisco? >> you buy the stock and wake up and smell the coffee. >> the stock is up - >> it's had a pretty nice run. certainly far ahead of the, well, not far, but ahead of the s&p's 10% move so far this year. >> people called it disappointing. now it is down 3.5 it was ridiculous, at this point. this stock trades in orders. i've been following cisco since '93 and when the orders go up, like the way they did, and you can talk about service providers, 17, you buy cisco,

you don't sell, it and people are coming to their senses and buying the stock and it's not too late to get in they admitted they had supply chain problems so did farley. >> right. >> and who is farley's customers? >> apparently the greater community. >> and i want to get to some news this morning on the rails that battle for kansas city southern it does appear canadian national is much closer to at least getting its offer signed up. and that is because canadian pacific chose not to raise it had until later today to do so this morning, they put a press release out, canadian pacific, telling us why they're not going to raise and raising all sorts of questions, as they continue to, about whether or not the deal that conceivably ksu will enter into, could ever get actual approval from the stb and so forth and the fact that they affirmatively expressed these views in the may 17 decision,

and didn't grant yet approval for a voting trust which i tried to explain is the most important component which is an actual agreement, they say it's more than that. it sends a clear signal on the stb stance that should see them move forward with renewing the motion for approval to use a voting trust any potential available procedural grounds, you can see it right there, of the completeness, also sends that signal you can follow it. what do we expect? tomorrow morning, based on what i'm hearing at this point, they are expected to sign up the canadian national deal, jim. >> really? >> yes and then we'll see if they take it from there. they will get a billion potentially, and if they don't get that voting trust, then they can go their own way if they want it do so afterwards and some come back, and you can see the response in the market place so far, with the canadian pacific shareholders >> real volume here. you want to get that deal.

you want to get it done quickly. >> quick is not the case but shareholders will be protected. >> you know biden is not as aggressive as trump was in terms of keeping, building cars, down in mexico, which is why it is a valuable company and making millions of cars, and kansas city southern is worth a lot more now than it was under trump this is something worth watching. this is a brilliant move by whoever gets it because it is taking advantage of the fact that trump is no longer president. >> you're definitely right about the mexico production, jim, raising hackles among those looking for evidence that united states will be building american, something that ford is touting in the production of the lightning, but certainly not every model. jim, it's definitely a day for the chips. which continue to be the strength of the nasdaq 100 i know, you noticed nvidia,

overweight 700 and trim the intel target. >> nvidia has been going down because they have this very small, and i emphasize very small part of their business which provides cars to ethereum miners so the fact that this thing is trading off of ethereum is just nonsensical. and when they report, you won't even notice the line david though, we are still waiting for something involving volts. >> and everything we indicated so far indicates they will have a hard time. >> why can't they just license a lot of arm stuff >> they still are saying that they - >> that's going to be an overhang for an otherwise great story. >> i need intel, david is it a possibility that an amd could close this xilinx deal earlier and they announced a $4 billion buyback. >> i guess you're saying it means that it is possible. >> it wasn't rhetorical? >> it wasn't you are asking the question?

i don't have the answer. >> ask it in the form of a question. >> what is intel and the actual, that's the correct response and the clue would be a place where shareholders were recently rejected the ceo - >> how long can a guy who is well behind, maybe two years behind amd claim he is ahead of amd? i like pat gelsinger, but honestly, intel is so far behind with the road map, it started with rome, okay, david, and then it went to naples and now milan going to genoa, he's still at rome and rome was not built in a day. >> it wasn't by the way, these rejections of the complication by shareholders are nonbinding so the board takes it. they say thank you for your interest okay we're still paying what we want to pay and that obviously was the case at a number of company, including ones we know well. at&t >> at&t. >> starbucks and general electric >> at&t was up today

>> at&t is up. >> making a comeback >> making a comeback, david. >> it's up 19 cents. >> at&t is up 19 cents >> comeback -- >> down about 9% for the week. we can take a look. >> and the dividend, the yield, david, the yield - >> back to that. >> i know. >> people want that. they didn't buy it for - >> the yield is 7% but fall once the deal close, quite some time from now, 40, 43%, the payout of the roughly cash flow estimate the stock has not done well this week responded poorly to the deal at this point, and recalibrating because of the dividend cut that you've mentioned many times. >> i've spoken my peace on the destruction of value there and how poorly randstephenson and how i felt i was had by stankey. i said my peace about how

horrible this is and how it is really bad for corporate america and it shows what a laughing stock people make a million. i really said it all i don't know what else to say, other than a clawback and it is ridiculous and individuals are angry about it you know what, i think we leave it at that >> well you defended culp's pay. >> 6 to 12. >> they moved him from $12 baseline to $6.67. there it is. and leslie did a great story on there a couple of weeks ago when it happened. >> that wasn't right but a lot of happy shareholders. >> that created 100 million bucks out of gate for them, thank you very much. they wanted to keep culp. >> and discovery gave david, 14.8 million stock options on sunday the day before, obviously, we got the announcement of the big deal and mr. zaslav and finally, guys on this whole subject, i did want to mention viacom, carl, you mentioned it earlier, double upgrade from

jessica, over at merrill lynch or bank of america, and basically what we're discussing yesterday in part, i reported this, there was a willingness on the part of the viacom controlled shareholders to list physician there were any offers and any potential sale would require approval of that controlled shareholder, that is in the form of sherry redstone and in the past she said to be an unwilling seller but the dynamics could increase pressure to consider an offer. >> what changed? the scale issue? >> of course. >> scale, scale, scale. >> we'll see following it closely we'll see what develops. >> and for jessica to do a double upgrade - >> double upgrade. >> not to be confused with a double reverse -- which our company was trying to figure out to get warner. >> or re-sizing of the dividend, which does not mean double it is half it's almost re-size time that's what they will do in the nfl. it's almost re-size time. >> say the word. >> fixated

>> yeah. >> cut that and re-size it that's half. re-size is better than none, david. go ahead, carl. >> guys, it's been a busy day for data as well we have rick santelli. hey, rick. >> good morning, carl. it looks to me the ninth session that treasury yields for 10-year maturities look to be closing in the 1.60s. getting very comfortable in that zone and when you really consider the texture of how 1.74 is the high post-covid yield close, you can see that we're not giving much back, even though we're kind of trading in place and if you look at the intra-day of 10s, we slid right into the 8:30 claims data and it was largely as expected, except for continuing claims of course, continues to move slightly in the wrong direction. but it seems as though the market was well prepared for that and if you look at a two-day chart.

all the action yesterday was right around fed time. of course, when the minutes posted up, and the main reason for that is, the market has some issues with the kind of stimulus selby date of the federal reserve. and if you look at what is going on in bund, here is a two-day chart. and yesterday the high yield was m.i.a. minus 7 and today minus 9, and open a chart up to may of 2019, the current high close going back to may of 2019 is minus 10 so it looks like it is guns hot for a fresh two-year plus high yield close in bund land and finally, let's take a very close look at what is going on with the dollar, versus the dow jones industrial average, and it is just sort of a proxy for all of the stimulus and the policies that have gone into a post-covid, try to firm up the equity market. and in the beginning of course, it was highly warranted. but look at what goes on there it seems as though once the dow

got its sea legs back, the dollar lost theirs why, because many of the policies that are holding equities in a higher position have outlived their usefulness with regard to what it is doing to the dollar and long-term debt issues carl, jim, david, back to you. >> all right thank you very much. still to come this morning, as we mentioned shares of petco taking a bit of a hit today. still up 35% since the january ipo. we'll talk about the earnings and the post-pandemic outlook with the ceo in a few moments. in the meantime, a bit of a recovery for the nasdaq up almost 1%. we're back in a minute

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we mentioned oil is on track for the worst month since march, down 4%, and sure enough, chevron leads the dow lower for the week so far. followed by cisco. cat. goldman and verizon. a lot more "squawk on the street" coming up in a moment. don't go away. ♪ ♪ i had the nightmare again maxine.

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let's talk petco symbol woof. t the shares were under pressure, i wouldn't take that as a sign

of anything other than all the retailers are down today let's go to the ceo ron conklin, welcome back to "squawk on the street," good to see you. >> good morning, jim great to see you let's talk about the wholesale shift during the pandemic. people buying pets like never before and what it has meant for your growth, and talk about the organic growth that you have because i think that's what we're all measuring these retailers by now >> we like focusing on adoption, as you know. there were 11 million new pets in 2020 and forecasters continually are ticking up their forecast for 2021. adoptions have been up for years they were on backlog, et cetera. and what we like to say is you might get a peloton once, you might redo your garage once, but once you have a new furry friend, they need to be fed, groomed, they're going to need to be vaccinated for a decade or

more we call it the furry annuity we picked up 1.2 million customers in q1, and that's going to power us going forward. >> once you have a furry friend, you tend to get another furry friend, and people who are adopting furry friends tend to get younger and younger. >> it's amazing how many, two, three, four, five, and even six had households have happened during cokvid, and you're exactl right. when you look back on 2020, a lot of those new pets were taken by millennials, and gen zers, and guess what, they spend a lot more on their pets, so that's a tail wind on spend per pet not only do you have 11 million new pets since 2020, but you have a tail wind on spend per pet, which is going to propel the category and our spend per pet is up. the retention is up. all the fundamentals on the consumer side of our house are

very very strong >> okay. so ron, there's two kinds of spends on pet. there is the annuity spend that chewy has on food. they're the more important annuity, which is sadly, pets get sick, and they can't tell you they're sick one of the things that you and i both know is the tragedy of an animal that is in incredible pain, and we have no idea. that's why you need vets how is the health care portion of petco doing >> yeah, so last year, if you look at what happened with covid, our training and our grooming business is impinged upon with covid regulations, they're back to strong double digit growth, and then we added another 12 vets in the first quarter. we take our estimate of total new vet hospitals up to 72 for the year we supplement that with vet clinics and we added 200 pet care centers with vet colllinics we're up to 1,200 locations with vet clinics.

so between hospitals and our vet clinics, we have the second broadest array of veterinariy resources in the united states. >> with 300 million new incremental pets and the idea that you have had ten consecutive quarters of growth, how many petcos can we have in this country >> yeah, so we did coloring over the last three years of any of the locations. we're very comfortable with our footprint. we even see some expansion in some of the high growth markets. and we just actually announced our 100th location in mexico, number one online, number one offline, but the main area where we're focused is increasing through location by adding the vet, adding a food for dog pantry, and adding a ready storage, which is our premium pe peril and supplies line. when we add to that a vet

center, our comps on center store sales go up between 4 and 6 points, so we get the vet revenue, we get the center store lift, and we're helping take care of pets because as you know, our vet hospitals are founded on the idea of affordable vet care. 70% of pets don't get the care they need. and we're trying to address that >> well, i want to thank you, as a pet owner, and obviously owner of pets that otherwise could be euthanized you could do a great deal to stop that. i didn't get to mention the free cash flow. the skeptics would love that you're getting much more thank you for coming on "squawk on the street. >> thank you very much, jim. carl, back to you. >> jim, that was great, and you got a lot more to come tonight on mad. >> we have brian moynahan, the man is committed to doing the right thing in the neighborhoods. i think he's got the visionary hybrid model of cyber security

that you need, and dr. mark briscoe, and we have to talk about copper, and we want to talk about the goal, back to being a store owner. gold has never dropped 31% in an hour, and then going back 30, carl it's a little steadier than that i've always liked gold i have liked crypto. let's hear what dr. mark briscoe has to say, it's unbelievably won. >> good stuff. great hour >> good to talk to you >> 6:00 p.m., mad money with jim cramer, 6:00 p.m. eastern time a nice extense oion of the gains here nasdaq up more than 1%

good thursday morning, welcome to another hour of "squawk on the street," i'm carl quintanilla with morgan brennan and david faber. markets are up, not by a lot the nasdaq, at least, isn't up enough to go positive for the week, which means we're going to import potentially avoid five straight weeks down l.e.i. is out. let's get back to santelli >> yes, thank you, carl, our april read on leading economic indicators expected to be close

to last month, and up 1.3 outperformed a bit up 1.6 up 1.6 that is the best level going back to july when it was 2.0, and do remember the all time high for 61 years in existence was 3.1. that was back in may of last year interest rates are slipping a bit. the dollar index is trying to hold close to 90 a very important pivotal area. morgan, back to you. >> rick santelli, thank you. this as we see the major averages bounce today. we're 30 minutes into the trading session. starting with cisco, that's under pressure, despite a beat on the top and bottom lines after forecasting weaker than expected current quarter guidance that was phrase two. supply chain challenges. those shares are down 2 1/2% square space is on watch that's after the development company plunged as much as 13% in the first day of trading. well below the reference price

for the direct listing, and well below where it was valued in the last private funding round you can see the shares up are almost 5% right now. 45, 67 is the level there. finally, version galactic, lifting off after the space tourism company announced the target day for the next test, the next rocket powered flight test is going to be this saturday we'll have more on the space later this hour. you can see those shares are up 13% right now. >> get back to the markets this morning. joining us is david speaka today, president and ceo at guide stone national management, and megan, head of capital managing great to see both of you claims are looking a little bit better but certainly not the improvement that we'd seen in prior weeks. housing starts have missed, retail sales have missed is that good news in that it answers some of the concerns from those who were worried about overheating?

>> i think some people are going to see that as good news because that does reduce the fears about overeating i would contest that the economy has just taken a slight read i think we're going to back into a significant growth mode. i think inflation is still a problem. the fed clearly doesn't see it as something, it said again in april that it was transitory that's one of the things we're keeping an eye on. inflationary pressure is not something we have seen in many years, and it's not something people in this industry know how to manage through inflationary pressure i think the economy is going to continue to be robust, more job gains, potentially more stimulus, and that's going to drive inflation. >> if those concerns are still acute, and we're obviously still unanswered whether it's transitory or not, how do you explain the action in bonds, why hasn't the reaction been at least a little more violent? >> well, we've got a pretty big step function upwards earlier this year, and so i think we've

basically returned to those levels, but it's less of a shock this time around how the bond market reacts is really a function of inflationary pressures but also the response from the fed, so i think what we might be seeing is expectation that inflation will move higher, growth will move higher, but still, a market that the fed is not going to let this get out of control, and that would really be impacting the long end of the curve. we're still seeing the short end anchored, even though expectations for the first rate hike are moving into the end of 2022 but that steeper yield curve we see is really constructive for the equity market, specifically value oriented sectors. >> when you say value oriented sector, what are you thinking about right now? we have obviously seen some of that in terms of the rotation that's already underway during the course of this year? >> our expectation is that rotation will continue probably at a slower velocity which we saw earlier this year

which would probably be a good thing for everybody and for controlled volatility. we like financials, specifically banks we think are a big beneficiary of that steepening yield curve. energy is also an area where we see continued support. it's had a fantastic run this year the dynamics that we're seeing from oil producers specifically is really a focus on not overproducing, but maintaining that profitability so those are the areas we're watching we did recently, you know, a few weeks ago trim a little bit more of our growth exposure and move more into value. but at this point, i would say investors should stay pat and not do anything drastic in terms of reducing exposure to those tech oriented stocks which are going to be such an important kind of secular, multi-year. >> i'm curious what you think about the drastic selloff we saw in crypto yesterday, and the fact that it seems to have cascaded across other markets as well is it systemic risk or

indicative of the bigger broader correction or pull back, i guess that we have seen in general by investors. >> i wouldn't call it a systemic risk it's not widely held enough. a momentum trade has been driving stocks ever since we hit the low last march i do think it's a sign that going forward investors are going to have to be much more focused on fundamentals, the multiple expansion, courtesy of the feds behind us going forward. earnings expectations are very high 60% in the second quarter, 33% in the year. stock picking is going to be very important, and investors are going to have to be focused on companies with good fundamentals that can grow the top line, and pass through rising input costs and prices to their consumers. >> finally, megan on tech, and specifically the nasdaq 100, there are some who celebrated the midday recovery yesterday but other technicians point out that look, it still keeps

creeping to the up trend line, threatening below it, and eventually, the weight of the enthusiasm could give away i wonder how worried you are about that, if at all. >> i think the support is going to continue to remain toward shows cyclical areas of the market, and i think this is a bit of a digestion phase to say the least for technology but again, i wouldn't overreact to it. i think there's actually some areas of the tech space that are starting to look very attractive semiconductor, we still like the search engines with an ad-based revenue, and even, you know, importantly as we think about infrastructure, internet, and cloud based technologies are really a very very important part of it we think that there are some attractive opportunities we're neutral to that space right now. >> meghan, david, good gut check

on where the markets are right now. appreciate it. >> thank you >> it's been a roller coaster 24 hours for crypto bitcoin plunging as low as $30,000 yesterday. shares of coin base, the crypto exchange now almost 50% off of their highs after going last month. and fin tech and payments analyst at rosenblatt securities to discuss further rich, i'll start with you. for better or worse, since going public, coinbase has become in the equity market perhaps the biggest proxy for what we're seeing play out on a daily basis in cryptocurrencies, should it be in terms of the daily moves we see and is that oversimplifying the model. >> i think it actually probably is a proxy for the crypto economy, and the acceptance of cryptocurrency, so it's not -- i

don't see that as an issue i think the main thing is that, you know, you've got to expect volatility in these cryptocurrencies what happened over the past few days while painful, is not unusual for, you know, how crypto has been priced over the last ten years you have seen every year, at least a 28% drop, and you've seen three solid cycles of resetting prices, so bitcoin, excuse me, coinbase is tied and totally focused on the crypto economy, so we would expect the stock to reflect some of that volatility as well. >> sean, i'll put the same question to you, especially since i know you're bullish on the stock, coinbase. >> yeah, i think, look, like what rich said, i totally agree. there is some volatility to be expected with a stock like coinbase, but i mean, there are some positives, too. i think that one, this is

accelerating the cycle, and now, you know, 12 months from now, investors are forward looking and the outlook will likely be a lot more bullish overall. and the second thing is volatility is not all bad for an exchange when there's more volatility, there's more engagement, there's more monthly transacting users there's more trading volumes, and that means more revenue. so, you know, i actually don't think it's all negative in the short-term it's certainly not in the long-term. >> but rich, to come back to you, i mean, on the subject of more regulation and the s.e.c., i mean, you're somewhat an expert in exchanges, certainly, and even in that part of things, what are your expectations when it comes to what we can really expect to see from gentzler and the staff. >> i think it's very well reported that chairman is

knowledgeable about cryptocurrency i think the u.s. is in a unique position, you see other countries, canada trading a crypto etf, so i don't see us -- i don't think we want to fall behind chairman is as knowledgeable as anybody, and he knows the concerns as far as liquidity, as far as the fraud, et cetera, so i think we're going to have good informed, you know, regulation, and hopefully it will be, you know, at least a bit friendly towards crypto given that he's so well knowledgeable of it. >> rich, you know, your point about the percentage of correction is obviously true we've seen much worse in history but never on this large of a dollar base, and i wonder whether or not you think the

worries that margin calls, whether they're related to crypto or not, when we get large percentage corrections now with this many dollars apt play does sort of threaten other asset classes, threaten equities >> i mean, i think that plays to the point of, you know, the importance of crypto i'm not saying -- i know there was a question just before about the systemic risk of crypto, and i agree, i don't think it's held, even though the institutional penetration is increasing, i don't think it poses a systematic risk, but, you know, frankly, crypto is becoming more important. when you have, and i know this as well, when you have bill miller, paul tuder jones, sp speaking as an asset, where you can diversify your assets, these

people have certainly found other opportunities in their careers, and i think they looked at crypto as at least a possibility, and i think that's becoming, you know, it's bigger. it's more impactful on the market >> yeah, sean, i mean, we started this segment talking about the plunge we saw yesterday in bitcoin but ether which runs on the ethereum platform, had a really rough day. we have seen the outperformance at least until recently within that specific coin versus a bitcoin. it speaks to something else that we're seeing happen around block chain specifically, and that's this adoption of defi, decentralized financial systems, and applications i wonder what you think that does to shake up the current system as it exists in financials right now, and also how it speaks to the fact that some of the other companies that you cover, whether it's paypal or square have been getting more involved in transactions and cryptocurrencies too. >> yeah, i think that's a good point.

the performance of ethereum as similar to what we have seen with bony, i think there was a lot of momentum, right, sentiment driven, and, you know, you talk about defi, which i think is an extremely important application of the block chain in cryptocurrency more generally, and really, i think, you know, ten years from now, who knows what we're going to be talking about as far as the applications, and i think absolutely, you know, this is something that is potentially a replacement to, you know, older, trad traditional systems. more than importantly, i think that what we're seeing is an entirely new class of retail traders that are getting involved, and you're also seeing institutions, too, and i think further down the line you might even see businesses starting to accept cryptocurrency at the point of sale, and so if you look at it in that context,

there is a lot of up side. and even though there's been a lot of momentum, it's got a lot more room to run >> sean and rich, thanks for joining us today to kick off the hour >> thank you >> good to be with you. as we go to break, a quick road map for the rest of the hour, including mcdonald's, holding its annual shareholder meeting this hour. labor shortages of course in focus. we've got all the details. plus a closer look at the rally in energy with crude oil up more than 50% in the last six months. and how much would you pay to go to space we have a lot more on the space tourism race that's heating up "squawonhetrt"ilbe right backl don't go anywhere. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients

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its worst week since march it is up double digits since january. the question, of course, does it have more room to run and who better to ask than brian sullivan who joins us right now. >> maybe meghan shue, i heard she likes energy stocks. rules of oil's death have been exaggerated. oil has been on the move higher since the pandemic low obviously demand is up, we're all getting back out there, driving is higher in some person cities than pre-pandemic opec has been disciplined. u.s. production has been muted you've got the inflation and the

dollars effect as well as oil has gone up, so have some of the stocks and the etfs look at the xop, xle, oih, i'm not throwing out letters those are oil services, etfs, all up 30% this year, and many beaten up stocks are up 60% or more they were left for dead, the balance sheets are not good. they were heavily shorted, you name it. they have spiked they're not just up because prices are up. u.s. producers have finally shown some fiscal discipline morgan stanley notes total free cash flow to the group, more than 6 billion in the first quarter. i know that's chump change for a company like google, but for oil, any free cash flow is good free cash flow, also, the group of course, widely hated. it's underowned for everybody, et cetera. fund managers are turning bullish. look at this for the recent bank of america, fun manager survey look at the second line down

blue, red, okay, more fun managers are bullish that oil will outperform this year, and the number is growing. more were bullish, the blue line in may, and then the red line in april. so given the huge runs in many names, guys, what stocks does wall street still like the most. we ran a stock screen, found the names with the most upside versus the analyst average target price, and the names are not what you think of it all, these are kind of one off specialty companies. here you go. new fortress energy, david, that was founded by wes edens, a multi multibillionaire extraction oil and gas, sees 38% up side over the current target. talos energy, 32% above where the stock closed last nigh, and berry corp., mostly focused on oil assets in the fossil fuel loving state of california

so those four names analysts see 30% or more returns on going forward. all kinds of bizarre in wes edens, you know him very well. he's got his fingers in everything. >> basketball, too, obviously with milwaukee, and our viewers know you were kidding about california you know, it's funny, though, buffet did an about face on chevron pretty quickly, brian, and you know, i am curious when we come back to sort of the permian, which is our saudi arabia, what is the amount of money being put in is capex down dramatically as well leading to the idea that over time there's simply not going to be as much development? >> that's true capital spending has been cut. look at the super majors, we talk about their earnings every quarter. they're whacking their capital spending budgets to $20 billion a year, to 16, $17 billion a year that cut goes into a lot of things, but a lot of that is new wells, new drilling. a lot of these companies have

gone bankrupt as well. we have seen deals we have seen other companies get acquired as well so the number of big producers has shrunk their capital spending has shrunk they've got the acreage. they're not developing it yet, and david, there's also one other reason why, and it's not just because they've got burned for the last ten years, which, by the way, many investors have, it's that they don't have the people we talk about inflation all the time, inflationary forces, steel piping for drilling, all the trucking, even things like water and sand, the price is so high that they don't want to either drill new wells or finish what they call the ducks. drill but uncompleted because their costs are so high. listen, ten years of burning through cash, david on these balance sheets will make people nervous. we're still seeing under 11 million barrels a day under the permian, about 13 million at its peak if they can stay disciplined, a

big if, if they can, maybe the stocks will keep running. >> that's a key question as we see targets on crude in the '80s that's a great explanation of what's happening up and down the supply chain. hormel is in the green thanks to continued elevated demand and then after the break, the next leg of the space tourism race, we'll get you details on that when "squawk on the street" continues. make fitness routine with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. try pure protein shakes. with vitamins and minerals for immune support. that building you're trying to sell, with vitamins and minerals - you should ten-x it. - ten-x it? ten-x is the world's largest online

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in business, it's never just another day. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it. comcast business powering possibilities. now for our etf spotlight, we're taking a look at the spider retail, the ticker is xrt, it is taking a leg lower, down 1%, after what's been a big week of retail earnings. one name in the red today is kohl's, that stock down 12 1/2%, despite the fact it raised guidance, posted quarterly results ahead of what the company expected and some investors concerned about how long the strong demand coming out of the pandemic will last especially after consumers spend those stimulus checks. it's important to point out when you look at a week, morgan, the

stock has been up strongly over the last few months. >> good context. 2 $2.8 $2.8 million, that's the highest bid on blue origins new shepard flight to space, scheduled to blast off on july 20th the bidding going public yesterday with jeff bezos company disclosing it received bids from 136 countries during the first phase of the auction that commenced last month. to put that number in perspective, we're in the bidding process, virgin galactic sold first tickets for $250,000 a piece a number of years ago, and speaking with the director of astronaut and sales about the auction so far, including what the lucky winner will get in exchange for millions of dollars. >> they are going to feel the rumble of that rocket engine underneath them as they go over the internationally recognized line of space into space

they're going to gaze out of the largest windows that have ever been in space. it's going to be a spectacular flight they're going to get about three minutes of 0g with the ability to unbuckle and maybe do some flips and maybe superwoman or two across the capsule they will come back down under three soft parachutes and a soft air cushion underneath the capsule, to celebrate with their friends and family what will be a historic and life changing experience. >> it will be an 11 minute flight, capsule have been to space 15 times so safety is the utmost focus here astronauts will need to arrive four days early for training what it estimates the total addressable market, i asked how this auction will inform future pri pricing. >> we plan on having a couple more crude flights towards the end of the year. we haven't announced how or when or how much those tickets will

be but stay tuned, for those the most competitive in the bidding, we're going to contact those people they're going to be on our radar for when we sell the tickets. >> the money raised in the three phase auction which culminates in live bidding, that focuses on kids, blue origin appears ready to provide a head start on lifting paying consumers to space versus it's most direct competitor virgin galactic will bezos be on board. >> we have announced how or if or when our founder will be heading up into space, but certainly if he does go, the world will know. >> which is interesting since richard branson's own long awaited trip to the edge of space which is expected later this year is seen as a key milestone for virgin galactic.

bezos has not marketed himself in the same way, at least not at this point meanwhile, speaking of virgin galactic, shares up 14 1/2%. the company announcing the next rocket powered test flight will happen saturday, may 22nd, pending weather and technical checks, galactic seeing a maintenance review on bmse, the mother ship that carries spaceship to unify for its air launch to the edge of space was completed. this will be the first of four tests that's needed to be successfully completed for commercial service at that company to actually begin, but after what's been just an ugly couple of months, carl, for virgin galactic shares to see the rally today speaks to how much hinges not on actual financials for the company since it's pre-revenue but these tests happening and happening smoothly and successfully >> yeah, no, we'll be rooting for them on saturday as they try to convince the market

and customers, i guess, long-term, that they have not fallen behind for good we're going to watch that, morgan great explanation of the horse race in space. dow's up 107, nasdaq up almost 200. let's get a news update with rahel solomon. >> good morning, here's what's happening at this hour palestinian militants launching more rockets into israel after israel unleashed another round of air strikes along the gaza strip. now, despite the ongoing conflict, a cease fire is expected in the next 24 hours according to the associated press. india's navy continues to search for 38 missing people off the coast of mumbai, after a cyclone sunk a barge of offshore drillers the navy has rescued 188 crew members, and recovered the body of 37 others the food and drug administration will allow pfizer's covid vaccine to be stored in standard freezers rather than special ultra cold freezer for up to a month. the decision will help make the vaccine more widely available, especially in more remote

regions. and take a look at this, a ship the size of the empire state building arriving today in new york's harbor. the vessel will be the largest container ship to stop at an east coast port. what's on the ship right there, everything from pharmaceuticals to holiday dorioecatns you're now up to date. more "squawk on the street" will be right back. don't go away. ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

we're about an hour into the trading session right now. let's take a look at the biggest leaders on the nasdaq 100, as we go see the major averages bounce after a very rough start to the week netease, jd.com, moderna, and atlassian are the biggest. in terms of the laggards, we're going to pull that chart up too. it's ross stores, cisco, after earnings last night, dollar tree, marriott, and walgreens,

carl >> morgan, mcdonald's shareholdermeeting is getting underway, and they've got some issues to discuss. kate rogers has more on that hey, kate. >> hey, carl, good morning, the shareholders meeting is getting started coming at an interesting time for mcdonald's. business is strong in the u.s. the company is staring down staffing challenges, several lawsuits that accuse the fast feud giant of racial discrimination, and continued strikes over higher pay. now, while former ceo steve easterbrook may be gone, he's hardly history here for the company. ctw investment group, which worked with union sponsor, pension funds along with new york city comptroller scott stringer have been campaigning against reelecting the chair of the board, and the compensation director over the handling of easterbrook's zseverance, addin in a statement that they do not belief the board is holding itself accountable for costly

errors in overseeing management. now franchisees who own shares of the company seem to be seeking guidance according to an e-mail viewed by cnbc from the national owners association board to its members while the noa did not propose voting recommendations, it did share a recommendation from corporate governance firm which says the two board members should not be reelected. institutional shareholder services did say both should keep their positions in response to ctw, mcdonald's praised leadership and the board and said in part, quote with the help of outside counsel, the board is investigating all allegations of misconduct by mr. easter brook, including lies and deception, and has taken swift and unprecedented actions to address them, and the company did sue easter brook in august over fraud and concealing evidence over his firing back over to you guys. >> kate, thank you. >> these operators, franchisees

are dealing with labor shortages, being asked to continue investing in their restaurants, they just got done reinventing restaurants before covid hit. what can we say about franchise relations. >> there seems to be tension off the top, business in the u.s. is on fire. there have been some recent wins with the chicken sandwich that the franchisees had been asking for. for years, these new celebrity sponsored meals, bts all doing well there's tensions over the unresolved technology fees that the company claims the franchisees owe it there's also several racial discrimination lawsuits from current and former franchisees, chris kay has said on earnings calls he does believe they can work these tensions out. that is certainly an overhang here in addition to the easterbrook drama over the shareholder meeting today for sure kate, thank you. >> let's check in now on shareholder of bj's wholesale,

they're down over 7% the company said the rest of 2021 remained quote difficult to forecast amidst a 5% drop in same-store sales but it has had a nice move this year, still up 55% by the way, we continue to keep a close eye on bitcoin itself. yesterday's selloff and recovery, we're going to go over the latest moves that's next on "squawk on the street." - when my son was fous old, his father passed away and we went from two incomes to one income. i hadn't really dealt with that type of struggle before.

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why tony dwire believes the etull back could last months our conversation on tradingnation.cnbc.com more "squawk on the street" straight ahead

welcome back, crypto prices stabilizing today, still down about 14% for the week and a far cry from its record of 65,000 a couple of weeks ago. here to discuss the volatility,

token founder and ceo o ian. thank you for joining us today >> thanks for having me. >> let's start with bitcoin, the fact that you have this limited supply, hearing the fact we're in the price discovery stage for the asset class as well. is the way to think about this, especially if you are a retail investor, somebody who's new to trading in general, this has caught your eye, you have gotten involved, the way to think about this, at least with bitcoin, specifically, volatility is inherent to the product. >> absolutely. cryptocurrency, one of the beauties is that it's very volatile as a result of that, there's lots of up side, retail investors and traders are joining the space because of the huge gains, whether in bitcoin, ethereum, dogecoin, right now, bony and cryptocurrencies are building the future of finance, the future of open money, and if they have the big picture, they should huddle and thing long-term. >> so when you talk about that, and we were having this

conversation about defi in general earlier on in the show, i have heard a lot of the arguments, especially with companies that are holding bitcoin, for example, on their balance sheets that they see this as digital cgold, a hedge against inflation, and loose monetary policy, devaluing the dollar, is that not the key argument for these cryptocurrencies, is it defi and block chain and the applications to financials more broadly >> yes i mean, so defi is a huge market, decentralized finance is in my opinion, building the new internet, splitting open finance. what does that mean. if we go back and look at the dog gone era, big companies like, google, amazon, ebay, this was the first wave of the internet then we have web 2, this was basically social media, connecting people on the internet we had basically you tube, twitter, facebook, and now we have web 3, taking those online communities and giving them entire ecosystem and currency to

transact and be able to exchange value between two people with trust. so we view the currencies and the entire space as not just open finance but the next evolution of the internet, and when you have that big picture, then you can see the value of crypto assets. >> so then what becomes more attractive for somebody who maybe is willing to hoddle as you put it and is willing to live bt volatility in this asset class, bitcoin, ethereum or meme coins. safemoon is getting all the attention. >> i know these have lots of interest from newbies but at the end of the day, we like to think of fundamental investing while meme coins are fun, when the music stops playing, safe moon dropped the most yesterday. when the music stopped playing and there are crashes, because

in crypto, it's a volatile market, you can wake up and in 12 hours, your portfolio is down 40%. there's no need to chase meme coins when you can find similar type returns in products that will be around in five years, ethereum, bitcoin, binance, which launched back in 2017 has delivered 10,000 x returns, why go chasing meme coins and take on that additional risk when you can find similar projects that will still be around and give you better returns long-term now, we have a very contrarian approach we think bitcoin is great technology but we think bitcoin's days are almost over because bitcoin was designed to be digital cash, but now it's becoming a store value, becoming digital gold, and the gold market cap is, let's say, 10 to 12 trillion but if we look at crypto assets, as being the next internet, through defi, that's happening on ethereum. went from 1 billion to $65 billion in total assets in

just 12 months that's just purely on ethereum, and all of defi is worth $100 billion and that's happening throughout crypto, and half is happening on ethereum, almost ten times the monthly active developers than bitcoin. >> ian, thank you. value investing in cryptocurrencies, you heard it here, carl >> thank you coming up on "tech check" later on today, another big story of our time, payments and electrification, we'll talk to adam jonas about ford's f 150, tesla and a lot more at 11:00 a.m. eastern time. "squawk on the street," in the meantime, is back in two

it is a corporate call to action, this week, 18 financial institutions including bank of america citi, and goldman committing billions to tackle racial inequities. joining us now is ford foundation president darren walker, separately, the foundation last week launched a multimillion dollar care fund with eight other organizations mr. walker, good to have you this morning

tell me a bit about this effort led by the connecticut state treasurer and yourself in terms of getting these financial institutions to commit more in terms of at least lending and everything else to these communities. >> well, thank you the effort with the connecticut state treasurer is an effort els for corporate policy diversity inclusion in both their internal practices and how they deal externally the effort is intended to diversify the ranks of staff and professionals to increase hiring and ensure that african-americans and communities who have traditionally been locked out of wealth-creating activities are encouraged to do that. >> how is it going to actually work >> it's going to work in two ways one, internally. those corporations making commitments to increase hiring, to ensure that there are across

the company leadership, promotions, et cetera. externally it's going to work with how they invest how these companies invest in communities of color how they ensure that there is diversity and that there is fairness of opportunity in their products, and ultimately in opportunities to create wealth. >> yeah. these efforts by many corporations are certainly to be lauded, but i wonder, darren, given your experience over time and sort of getting corporations to be more involved. we've seen it. we've seen a great many shareholders encourage it in terms of under the banner of esg, but i wonder. does it promote some sort of backlash i'm not talking about this effort specifically but broadly speaking a new campaign, for example from a conservative organization targeting corporations that have spoken out about social justice issues is that a concern to you at all? what are the conversations

you're like with ceos who perhaps face those kind of issues >> a great question and it definitely a concern i think it's really regrettable that the idea of expanding opportunity has become a divisive issue that the idea of diversity which is at the very heart of our american aspiration, is something that is being criticized as a capitalist, i believe there is no better way to organize an economy than through a system of capitalism, but we must have a capitalism that is inclusive, and that supports opportunity for all, and the reality that we know from data and research and evidence is that we've had a system of capitalism that has locked out too many. it's not capitalism when you have red lined, when the government and private companies conspire, draw lines around

communities, and they off capital from those communities that's not capitalism. i actually want to give capitalism a chance to work for everybody. >> darren, i think that's interesting, because to david's question clearly, these companies are beginning to feel some heat and a lot of it centered around voting rights. delta in georgia and so forth, but it doesn't seem to me like there's been any thought about turning tale or any nervousness about ramifications going forward. if anything, appears these executives says wee committed, expect the blowback and aren't changing course. is that borne out in the discussions you're having? >> indeed it is. i think people are committed and i think, again, they regret that there's blowback, but these are fundamental issues of democracy, and our most noble aspirations as a nation. we should be celebrating the

idea that more americans are engaged in our democracy and democratic processes that should be a reason for all patriots to come together and feel good about america. >> darren, it's morgan you're involved in the foundation, involved in the launch of this $50 million c.a.r.e. fund focused on supporting c.a.r.e. infrastructure certainly thrust into the spotlight whether the controversial out of the white house or everything we've seen with the pandemic over the past year and what it's done to the labor force. what are you targeting in terms of investments through this fund, and in general economic models, do they need to change >> absolutely acknowledging this needs to change, morgan. the care workers make the american economy possible.

the home health data lexington avenue, every other block, elderly person walking, sitting in the park. these people are among the most essential part of our economy, and yet they are underpaid average salary per hour, $9 to $10. so the fund we have put together that includes investors such as melinda french gates is pivotal of the kellogg foundation. the family foundation and others will invest in the infrastructure of organizations like the national domestic workers alliance and the national women's law center to develop policy, to advocate and support research that helps to develop a different kind of infrastructure support for these workers. >> darren, appreciate your taking time with us. thank you. >> thank you. just checking on lordstown orders

cutting stock to underperform taking a price target to $1 share on liquidation value "squawk on the street" will be right back. helps bring all your clouds together. that means you can access all your data, modernize without rebuilding, and help keep things both open and secure. that's why businesses from retail to banking are going hybrid with the technology and expertise of ibm.

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and we have that welcome to the show, krichristi. >> continuesing to thrive. now on base pest week since mid-march. big pick chef off 37% since its all-time high. other etfs bouncing off lows hit a few weeks ago. individual company, have a canadian solar, that stock soaring well above 9%. and end phase energy, best performer on the s&p 500 and on pace for the best week since the start of the year. back to you guys. >> all right thank you, christina. keeping a close eye on an ipo of the swedish oatmeal maker oatley set to debut on the nasdaq and following a base direct listing yesterday no pricing yet, morgan haven't seen it begin trading yet. $10 billion valuation raising $1.3 billion. >> a big fan of oatley and coffee but surprised by

valuation. another ipo. $9.6 billion diluted basis for a cloud offer going public pro corp. a crazy, crazy volatile market this week. and pulled off the docket last week others. that does it for us here with "squawk on the street. all major averages higher. nasdaq 100 up 1.5% effective on pace for gains this week "techcheck" will start right now. ♪ welcome to "techcheck" on this thursday morning. i'm carl quintanilla with jon fortt and deirdre bosa what an hour coming up the crypto comeback. the fierce fall and rise is it a bubble or blister? our next guest is calling it