>> so i guess the street doesn't think that dollar tree is just being conservative with its guidance >> it could be but if you juxtapose it to dollar general and some of the other discount retailers out there, it could be just a little bit of disappointment there >> dom, thank you. great to see you. well, that does it for us today, andrew. we will be back here tomorrow. >> we will. >> we will see you back then right now it's time for "squawk on the street. good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber, and futures getting a bounce as we await the gop counter-offer on infrastructure solid revisions on q1 gdp and snowflake and nvidia and jobless flakes inching closer to three-handle at 406,000. and stocks higher on economic

optimism and reports that the white house will propose a $6 trillion budget on friday. >> plus, big oil's bad day exxon delta stunning defeat in the activist challenge and royal dutch shell also drastically, ordered to drastically shrink its emissions by a quarter. elizabeth warren, she sparred with jim jamie dimon as the wall street big six bank ceos get grilled about profits and priorities carl >> guy, jim, you had so much to work with last neither between snowflake and opta and work day, and some of the retailers, what's interesting this morning? >> i think that we had some incredible numbers from companies that did major seven figure deals over zoom all these people are going to travel to see clients next quarter. the numbers you see now are so, i'd say, misleading. versus what these companies are going to do. even the last month, the cadence

of the third quarters was rather remarkable david, i know we discuss often people going to see people or not. but the ceos are going frank is basically moving to europe, in order to be able to nail down a business that was up 200% and neil bushri, who you know well, he is seeing major customers they both have conferences where people are going to virtual but virtual is at its end. >> it is a take-away more that you're giving us, that virtual is its end and a good thing for business travel or more specific to the businesses themselves because it is not that they haven't been closing deals they have been closing plenty of deals virtually. >> right, but i think they do feel if you want a big multi-year deal, it's got to be face to face and it's kind of joyous. i think, what i think we can count on, david, were the ceos who were anxious to get on the road >> oh, yes. >> and i think it's very exciting, and carl, when i look

at the numbers, i know there are many people who would say, you know what, i got to sell snowflake. they didn't guide up enough, and work day, what was that? that's really not that good, the same old growth, and work day, they're going to do huge business this quarter, and saluteman, people want to sell, well, look, he is the biggest most aggressive player with the product, if you read his book, you'll know, and his book is a short read, with a product that puts everything to shame, other than what he has he has far more orders than he knows what to do with. it's literally one of those. he cannot handle all of the business people want to sell the stock, fine but a guy who can't handle all of the business, carl, is a guy i want to bet with >> yes, you talked about him with becky a few moments ago and both of those companies that you mentioned jim, did mention the guide, modestly down pre-market.

you talked to frank last night about the message to investors, and the fact that in his words, it's not going to be a short-term journey take a listen to this. >> our business is going to conduct itself really over considerable long periods of time and the message to investors is to really understand, you know, we're signing on here for a journey, you know, five to ten years, and it's not an overnight, you know, throw in a quick switch, and everything is great. these are big, big changes that we're experiencing in the marketplace and we're just super happy to be in the middle of that, and being an enabler of that. >> jim, you know, the valuations are on the high side of its peers, you don't seem to mind that. >> fastest-growing large cap company, in america. 110% growth. 206% for certain products. if you go into the rpo, particularly measured, its the backlog, 1.4 billion, it's

possible he may be the, after salesforce, the fastest to 5 billion, maybe 10 billion, the key thing it is not a sas model, it's a minute model and if you're small and you want access to the cloud, you charge by the minute and no one else is doing that he has a huge number of north of 100 million, he has these 100 million customers already. >> yes. >> and he is out of nowhere. he's out of nowhere, the company has been in business for a while, but he has a june 9-10 summit coming up and that's when you're going to hear all of the things that people wish they had not sold for it. >> jim, to carl's point, it is still a high multiple stock. both on earnings and on revenues as we know it's been a lot higher than this but the trade that at least some are pursuing right now, in case inflation does continue, and is not transitory, is to look for, you know, almost look for some of the faang names that have multiples that make them very cheap, a la facebook or even

alphabet, and short names like this, because in that kind of environment, if in fact you're not correct, and inflation is not, or is here to stay, these are stocks that are not necessarily going to be bought >> i will agree with you, reflecting that, one of the things that i think is surprising that has kept me in the transitory camp is bonds are not reflecting, the fact i went over with my manager last night, what the heck with fingerling potatoes, they double in a year, doubled, okay, a lot of our, just the basic corn, all of the, the products that restaurants use, are all up 80 to 100% >> okay. but that, but because that's not reflected in the 10-year yield, you're not concerned >> precisely. >> for the market? >> precisely. >> okay. >> now, it's something that looks for people who are much

smarter than i am and they keep saying why is that not moving and as long as it doesn't move, then these stocks will have a little bit of retreat as the hedge funds who bought snowflake expecting frank to do what he would never do, which says listen, i'm taking up big, workday would never do that, salesforce tonight on the show, i doubt they'll do that. but because of fingerling potatoes, are you going to sell frank slootman i mean honestly? is that what people are doing? these fingerlings are high, we got to get rid of snowflake? no, it's not working 10-year, interest rates go higher, forget snowflake at least for now david, that's the way it goes. that's the way it goes >> carl? >> 1.61 jim, your point is well heard. by the way, we're getting a couple of different headline, one is that gm is restarting production on some plants that were closed due to chip shortages and now we have a republican counter-offer on infrastructure, let's get to

that. >> republican senators are now releasing their counter-offer to president biden's infrastructure proposal and the amount that the republicans are now willing to accept is $928 billion that's the size of their latest offer, and that includes an additional $200 billion for your core infrastructure, like roads and bridges, and that's higher than the previous gop proposal, about $300 billion for that amount, and it also includes $4 billion for electric vehicles. the new gop proposal also includes more money for water infrastructure, a $20 billion infrastructure financing facility, but even at $928 billion overall, that is still significantly smaller than the $1.7 trillion that president biden has suggested as the number he is willing to hit in these bipartisan negotiations. so we will be hearing from gop senators any moment now. as they unveil this proposal

certainly, they say, this is a sign that they are willing to compromise, and work together, to come to common ground on what should be a bipartisan issue guys >> one of those senators of course we'll hear from ourselves, in our 10:00 a.m. we'll talk to minority leader mitch mcconnell about this proposal, lots to talk about the leader, in the meantime i guess we can assume that this will not touch the 2017 tax law >> no, that's something that republicans have made clear, is a red line, and what i have been told is that some of the ways they plan to pay for this, not outlined in the briefing materials that we got, that some of the ways they plan to pay for this is repurposed covid funds and debate whether or not to use enhanced ios enforcement to close that tax gap as a way to pay for this all of those things are currently being discussed because that is of course the thorniest issue of these negotiations >> thank you for the news on that we've been waiting for that for a long time.

remarkable that it did not leak ahead of time but 9:05, they said it would come and there it is >> i don't know what's happening. there is disorganization down there, but i'm so glad that you have the interview, i know there will be people who say it is going to be boiler plate, but i got to tell you, carl, i think you will make news at the 10:00 hour, i think there is something afoot that this thing came out so early i'm not as negative, because i think it's too embarrassing for the republicans to go against infrastructure at this point by being low balled. >> mitch mcconnell joining us at 10:00 a.m. and looking forward to that interview with him. i wanted to get to another big story we're of course following this morning and i know you agree with me jim, which is exxonmobil and its fight against the activist investor, an activist investor, led by engine one and calster, and the fact that this at this moment, it appears at least to, and frankly from what i am hearing, likely, three new directors, will have been

elected by exxonmobil shareholders to its board of directors. a stinging defeat for the company of course. many want to call it a water shed moment for the esg movement i won't dispute that but you do have to point out that there are things that are singular to exxon that you also have to include, when you say something like that. namely, jim, and you know this, this is a company that for years, really had no interest in what shareholders were saying. they're making their decisions based on their 10, 20, 30-year plans, investing their money in the likes of rex tillerson, and you know, you can tell us whatever you want but we're not necessarily listening, so you're talking about a company which frankly many investors i spoke to would have turned arrogant. that has not been the case under a relatively new ceo darren woods but that may also have been a part of this. a number of missteps on exxonmobil's part, too, in terms of how they approached all of this the activist at d.e. shaw, of course they chose to settle with and put new two new directors on the board and they thought that this would done and they never

expected that engine one would be able to mount this type of campaign 0.2% and they get what may likely be three directors and that makes this watershed moment. that makes people question whether in fact the index funds, which proved so important in so many of these battle, given how much time they have spent court noog investors with an esg mantra to a certain extent will be much more of a significant vote when it comes to esg being on the agenda in certain proxy fights but again, i do, jim, want to come back to reminding people that exxon is, its its own enty and not clear if it would be the same outcome even if it would be esg, more of an esg agenda versus a, well, they say esg as well but a less esg agenda. >> had the stock done better, would the public have voted with darren, and maybe more

important, when i look at the people, these are people that they, by the way, who they presented, engine one, these were really i'd say outstanding people. >> gregory goth, a long history in the energy industry two directors that i think the board is going to be happy to onboard, and welcome to a certain extent but it does bring up a lot of questions again, they're going to have had potentially as many as five new directors ahead, during this period of time remember earlier in the week in a shareholder letter they pointed out they would appoint two new directors over the next 12 months, one with energy experience, one with experience in climate transition, for example. based on my reporting, i think that was part of what they believed was an agreement with a number of significant index fund, jim. i think vanguard and the blackrock, or statestreet, for them to vote in favor of exxon and then they changed their mind and you know, they did not get the support they thought was there from the index funds they still almost won. so they still had a great amount

of support from retail but the index funds here, acting as they did, and voting as they did, is an important moment. does it mean that esg will be used as more of a club by any other activist or that perhaps companies will be forced to settle or think it's better to settle as opposed to going to a full proxy fight perhaps. but again, you know exxon well, for many years, and i don't want to, you do want to make sure people understand it, it does have something to do with the history of the company. >> they were very late with the charm offensive. they didn't seem to understand that the media must be addressed a more formal way. who will be on the nominating committee? because i have to question, i have to question the staying power of darren woods. >> listen, it's right to do that i asked him yesterday whether in fact, because mr. woods did join me for a brief interview yesterday, around 3:00, and i asked him whether it was a rebuke of his leadership, and here's sort of what he had to say overall about his

shareholder days >> with over 3 million shareholders, it's not surprising we have a pretty wide range of views that were expressed, many supported the plans that we put out, the work that we're doing to improve the earnings and cash flow capacity of our business, as well as the work we're doing to help advance the company to a lower carbon future and today we heard some institutional shareholders, communicates to exxonmobil to further these efforts. >> one of the questions will be how much further do they go. and shell was mentioned and the court case there and even chevron there's a lot of questions here. but certainly an important moment for the esg moment. >> mike worth, from chevron, distinguished himself very early from darren woods in terms of when to sit down and ask, not a listening tour so much as help, i want to do the right thing i've got a corporate governance conference coming up, it is too early to really talk about but i

reached out to mike because mike is a person who basically is just saying i know we're on the wrong side of history, help us get to be on the right side of history. and exxon just like john d. rockefeller, felt there was no history other than their own >> yes, carl, when it comes to the actual vote, it could still be a while until we get the final tally. in fact, as many as two weeks, i think, an inspector needs to look at it but you will get a preliminary vote total from exxon itself as early as monday, i think, they have to give us one. and again, based on my reporting it may well show that that third director, at least in the preliminary, has enough votes to be added as well and mr. carsner is the name? >> will mr. welden perhaps not be on the board? >> i don't know. >> why is there such a mystery >> well, the vote's very close the vote's very close. and that's why remember pmg, that went on for a while. this occasionally does happen. but again, carl, it was very

much unexpected. i think we can all say that this very small activist with virtually no economic interest in a giant company would be actually be able to effect the change that it has and it will be taken as a signal. >> and how did they not know that calsteres, why did darren woods not think of calsters, who was so obviously tied in with engine one, is it because no one heard about engine one, that it was some sort of a clubhouse >> they thought they had the support certainly of many of their shareholders and institutions and already effected change on the board with the settlement. >> i'm shocked about this whole thing. i'm absolutely shocked and i do believe that the people who come off the board who frankly were, let's say, not as important, david, this is revolutionary. >> carl? >> yeah, it was a landmark day, guys between exxon and shell and chevron and ford, by the way, an

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to reach 50 million low-income americans with the tools and resources they need to be ready for anything. i hope you're ready. 'cause we are. you and your colleagues come in today to talk about how you stepped up and took care of customers during the pandemic and it's a bunch of baloney. in fact, it's about $4 billion worth of baloney but you could fix that right

now. mr. dimon, will you commit right now to -- the billion that you took from consumers during the pandemic. >> no. >> right now >> no. >> that's right. over the past year, you could have passed on the brakes that you got from the fed to your customer, but you didn't do it everybody else here, those other three bankers, will any of you agree to refund the overdraft fees that you collected? i didn't think so. >> senator warren with jamie dimon one of the more watched exchanges in that hearing, jim, it was remarkable regardless what you think about overdraft, the selection of topics they chose to address versus the ones they chose to ignore >> look, if you read the different testimonies, of the chieftans, you would see how much they did with the community overall in terms of cutting people breaks, i know the breaks

were being done with ppp, trying to get that through, i don't necessarily think they did the best but they were out there, and you know what, david, there is always something that a bank does that is easy to pin down. and i know that banks tried in many cases to give you, during the crash, the great recession, some breaks, and this was not necessarily on the list of things that, you know, let's suspend overdrafts but senator warren can always find something that they've done wrong. >> always. and do a good job prosecuting it. >> very good. >> jamie dimon, to his credit, said no. >> no. >> very simple >> and the answer with a yes or no also about unions. another senator asked that. >> has he not been the star of any one of these star chambers >> he is. >> yes you know why >> why >> he's thought it through and he's not afraid.

and he doesn't play with dinner. >> right and there it is. a look at jpmorgan from the pandemic. >> i don't think there will be, i don't think engine one is against them. >> no. >> because see, they made a lot of money for people, too. >> they did. they did >> it does matter. >> without a doubt it matters >> what is their carbon footprint though >> fairly large. back to that earlier conversation, you do wonder, though, jim, if again, some investor comes along and i will spend $40 million to buy a stake in company x and i want mcdonald's to stop using cows. >> stop using any sort of paper, too much packaging >> and esg, do they actually get a real hearing >> they have to cover themselves by saying they got a good deal with ethan brown at beyond meat which i'm surprised that our friends at wall street bets have not taken me up yet.

they are so supportive of everything i do, i think they have to go for it. >> and gamestop? >> i think you want to add it to the list >> i think they want to hang me, and i prefer not to be hung. but there's something in it. >> guys, we will get the opening bell in about seven minutes. don't forget, another half hour until the interview with the senate minority leader mitch mcconnell, as we get this republican counter-offer on infrastructure don't go away.

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it's time now for mad dash and we are counting down to an opening bell instead of saying the company's name, i will do what you always do and call it by the guy who runs it. wong. >> wong is a genius. >> you mentioned it. >> nvidia. spoke to him again last night. here's what you need to know, david and i'm going to go right into your wheel house. >> please. >> arm deal, set to close early 2022. >> i heard that.

>> that the people in the u.k., david, they're not against the actual formation they want to be sure that the jobs stay. i've got three words for you about why i'm confident this deal was going to work research, research, research the research is going to be kept there. and that's going to provide myriad jobs, much more than they - >> so you have shared, i think, the broader concern that many have had about their ability to actually get regulatory approval, in both the u.k. and china, but you seem to be changing your views based at least i assume from what you're hearing from the company. >> yes, the goal is to put as many people who are in the u.k., that are smart, to not change that at all, other than to make more people hired, arm can't hire them, and nvidia, nvidia is the largest semiconductor. >> and some pockets -- >> by the way the stories about shortage of chips, they're false, can we take that off the narrative?

that's not true. i got that completely killed this morning amazon, google, microsoft. people have to understand they have inference inference means that amazon knows, do you ever see amazon once, push something that you like, like you go to amazon, and you say i really like -- >> because you likethis, you might want that. >> well, that's inference. that's nvidia. and they have a mercedes-benz car that's going to come out next year that again, i do think, as much as i say you should buy tesla, it's going to be packed with nvidia. and you'll be talking to your car all you want, and your call will understand you, and probably corrector english as far as i know. >> that would be actually very helpful. what from the call stood out to you? was it that? the stock doesn't appear to be poised to do much of anything this morning, despite of course what was the strong calling, and what about guidance? >> the gaming -- >> the guidance is fine. the gaming is good the business in gaming is just good but what they really emphasized

is the hyper-scale demand is strengthening. why is that important? because there's another man, pout gelsinger from intel, who talked about how that's weakening. well, david, either they're, one of these two sides is wrong. and the side i will say is wrong is intel >> still more dependent on crypto than we believed? >> no they managed to kind of change the crypto cards. they said they're different from gaming cards so they have a better handle on things. they are not stressing ethereum. they happen to make a lot of money of it and stressing gaming cards and latency. once again, you read the conference all, all it is just -- i didn't go to stanford business school, and it hurts me, in terms of my ability to understand that. david, but i turned down stanford it was my backup school. >> it was a different time >> and now i know it was completely wrong. >> that's all right. you've done fine.

>> he has. he's done fine the big board today, celebrating an ipo, scrubs maker figs and the upgrade of ford at rbc is getting attention, and more confidence in the 8% margin number for 2023, f-150, a watershed moment they say for ford and the industry, especially when you start adding on features like backup power which we talked about earlier in the week. >> jim farley has said very clearly to me that he will be the dominant player in ev trucks now, he knows that there's someone else who's in ev trucks. the cyber truck. elon musk. and he has no intention of letting that man come in unscathed. he wants nothing more than to trounce musk now do i have to pry that out of him? why the hell not

but there's no doubt about it, david, that this is a very different ford remember the ford that was committed to losing money everywhere remember the ford that was at the mercy of - >> i remember all of it, jim and as i pointed out to our viewers, you have been positive on the stock for quite some time. >> since farley came in. >> people have followed your advice on it and bought the stock, they've done quite well but i would note it has gone parabolic in the last few sessions and that doesn't give you any concern at all >> no, it is, because they came out what deere said about commodity prices going up and that's not fingerling potato, that's cold roll, and i say all right, you let it cool off but farley is a different kind of guy he's a car guy remember, i told you, that's not been the case. he loves cars and likes to race cars, carl, the thing that is most exciting about jim farley is he took the job with an understanding from bill ford that it was going to be his airplane or his car and you know, when he thinks of something, he thinks of, he's a

little bit like you, carl, in terms of his knowledge, his cultural knowledge, ford versus ferrari, and this time, ferrari does not win >> yeah, that's a good way to put it that's about a five-year high on ford this morning, jim it was a $4 stock last spring. and as you can see this morning, above 14 you mentioned airplanes. boeing's going to lead the dow here at the open, jim. i don't know if this is related to some of that production scheduling forecast out of airbus, which was remarkable, i think airbus was up 6% in europe this morning. >> totally i mean phil knows more than anyone in the business, including i think the boeing people, and has been able to show that airbus had some great orders i will continue to get at, boeing did have another faa thing but it was over. i continue to try to go after boeing to talk about all of the new airlines that are being formed and how maybe they're candidates for the 737, boeing a little opaque, i defer to my colleague

phil, who probably has the real skinny, although i will do my best, david, to get it because boeing is such an important part of our economy. 2.5 million jobs >> last week, you told us those production numbers that were being reported by another news organization, mike not have been accurate, they got the -- might not have been accurate, they got the stock going and have not looked back. >> they might not be able to confirm did and i went directly to as high as we can get and not able to confirm it i will say that anyone buying off the china talks, is probably ill-vised, the china talks that are, they're too track, one is with china trade representative, and the others with the state department, and i just think things are far more, let's say the tinder is liable to go up, this versus the navarro trump era, where it was about business, and david, this is about civil rights and the democrats are, they

haven't even gotten there yet. what is the carbon footprint those guys are big foot when it comes to carbon footprint but they get away with it so there are people in the administration who i think are more hawkish against china than trump certainly. >> the stocks a had almost 10% move in a week >> why not >> there's great demand. >> and on the china front, things may not be as rosy -- >> china needs planes. and they cut off their nose despite their face and if they don't move soon, they will not get the deal that gary kelly got and gary kelly is the master. >> okay. >> okay? >> okay. carl help me out here >> i just want to -- >> i'm supposed to be off tomorrow i decided i'm going to work because i'm going to get better than an okay >> with tv like that, how can you go wrong

okay okay, okay guys, gm, we were talking about ford a moment ago, gm also hired, jim, i don't know if it's related to this news flash, that they are reopening some of those plants but i wonder if you think that's further evidence that the chip shortage, which you talked about a lot, being transitory, at least in the medium term, is actually getting borne out. >> it is things are getting better in the chip world same for ford. this issue, and even chuck robbins who was talking about 2022, he came on "mad money" recently, the ceo of cisco, talking about being, really, that we're to compete right now and that 2021 could be the year where we actually see a break in this and what i want to emphasize, is just so people know, is if they get the chips, it is an absolute home run for these companies especially, you know, mary barra really needs them. i cannot believe how -- you know, carl, the semiconductor business, the software business, the communications business, so

much business is being done right now, and i think that it's, we focus too much on the chip shortage because they're going to solve it. the japanese fire, that took out the big chip factory there, that's going away. no one wants to see gina raimondo, the secretary of commerce, go in and say, you give us our chips. our huddled masses learning to make cars. you don't want that. >> no, but you continue to be concerned about taiwan very concerned and china, getting back to china, it takes up a big part of your brain, that concern about china. >> i woke up this morning and i said what happens if china just calls taiwan semi and says - >> i know. >> you are our brethren, we don't like how the asians are being treated in america, why don't you side with us >> i don't know how much of your brain these days is occupied with spacs, probably very little, jim, but i did want to mention, looking through chamath palihapitiya's annual letter to supporters and standards, for

social capital, and he's had very good performance at least, according to the numbers but i did notice he only uses a gross irr, to take a look at the cnbc spac and when you ran a hedge fund, wasn't the net important did just report gross numbers? >> i can name a series of large investors who were with me, and they would pull out -- >> would they? >> of course, because that would be disassembling in their eyes >> this is only for 2020 but i pointed out because he is certainly one of the most proponents of spacs out there. and you can see what has happened to them since many of them down dramatically although the space has come back a lot. virgin galactic. but you can see where things stand. and don't forget that equinox deal out there, and still waiting for that and supposedly going to be partnered with chamath on the next spac deal but gross was an odd choice i thought. where's the net number give me the net number that's what matters to your

investors. >> gensler, with the projections. i have yet to meet, other than dave cody, i have yet to meet a spac that made projections the projections were to lure people in. >> right. >> but the projections are 2026 anyway >> which room were you in the margin call or boiler room >> i think margin call, maybe. >> okay. >> not sure. >> between margin call and boiler room, you have the whole spac, you got the whole spac thing going, don't you >> there was another one maybe it wasn't either one of those. it was the richard gear one. i don't know >> you were so good in margin call you were in an airplane. >> i wasn't in margin call. >> okay. >> wall street >> wall street 2 >> you were in - >> jeopardy? >> i was in wall street 2. >> carl, i know we need to get to rick. at least i think i do. >> nothing beats iron man, my kids still talk about jim in iron man dow is up 252. let's get to rick santelli hey, rick.

>> good morning, guys. well an intra-day of 10s gives you a lot of information you know, as we progressed, we had two pops in yield. first was when europe opened about 3:00 a.m. eastern time, you see that on the left side, but look at the way we went into the 8:30 eastern data, and many of course were paying particularly close attention to the pricing components of gdp, because once the data was released, it looks as though we peaked and the it is going to be very important for the rest of the session to pay attention to whether that almost 1.60 kind of 2 level, 1.61 1/2 peak is, is going to hold or not especially considering a seven year note option today and that will be important. look at a one week of 10s. the way we dropped in the tuesday's wung-month low closing yield, just came right out of the box once again with the up side we want to see what side of the important pivot at 1.60 we close at and i mentioned options today for good reason. yesterday's five-year, went off

at 0.788, right now the yield is 0.82 higher yield, lower price. if you participate in that auction, you are now holding a loss, and that will have some significance to today's seven-year, because the argument of course was there was no concession, because we had already seen such a big rally going in the option, that proved to be maybe the wrong move if you look at the month to date of five, you can see that 0.77 double bottom may hold that's a good one to pay attention to for the rest of the curve. finally, year to date dollar index, just like treasuries, tuesday was a big day, and it looks like the dollar index is struggling to try to bump up off the 4.5-month low. but very, very small buying coming in, and all of the pressure seems to be on the dollar globally, as other currencies, especially european currency, pound and euro seem to be gaining investor preference carl, jim, david, back to you. >> all right, rick, thank you very much.

rick santelli. when we come back, we'll talk to the ceo of medtronic, reporting results with an eps beat revenue ahead a div hike in there as we get a rebound of medical procedures in this country as the pandemic recedes. dow is up 250-plus we're back in a moment 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. this is the sound of change.

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i hope the vaccine can get me one step closer to my fiancé. dance on stage. spin class! i can't wait for my patients to see my smile again. to hug my students. to give my parents a proper send off. to go salsa dancing. no. i can't wait for you to meet my mom. play my piano for my friends. to give high fives to our patients. i think we are one step closer to being...better people. with every vaccine, cvs is working to bring you one step closer to a better tomorrow.

medtronic posting a beat on the top and bottom lines but much more to this, and of course a dividend of 9%, increase, by the way, one of the great dividend aristocrats joining us is the chairman and ceo, up ending everything, jeffery, great to have you on "squawk on the street. >> thanks, jim good to be here. especially on a day when we capped off a really good year, as you mentioned, with a strong beat on top line, and bottom line, and then raising our guidance going into our next fiscal year on revenue based on the confidence of the recovery and the r&d pipeline.

>> i was going to say r&d pipeline and robotic assisted surgery which is so great but i want to go to something that happened, jeffrey, i don't think people believable and you're in the industry and i follow and talk to you closely, there are actually major procedures that some regard as electable but i think you and i might have thought were necessary, who literally held back during the pandemic, and they're coming back now, it's kind of like you're a great reopening trade how is that possible >> well, look, it surprised us, foo, that, too, that you're thinking elective procedures but i don't think stroke, when you're suffering from a stroke, i don't consider that elective or a heart attack and those procedures were down at the height of the pandemic and on the other end of the spectrum, we have other things that are more elective, like obesity surgery or endo venous surgery for varicose veins, those are more on the elective side but we're seeing all of those accelerate, especially in the

united states, since the vaccinations hit an inflection point, patients got the confidence, hospitals had the confidence, and we're opening up and we're getting back to near-precovid levels. >> i don't think people understand some of the revenue streams you are doing. the review going into robotics the research going into the brain. the pullway and the decision that you're going to reclaim the diabetes markets i'll give you any one of those three or all three to talk about. >> well, thanks for that opening. yes, so we're seeing more opportunities today, than we've seen in memory because overall, advancements in technology, medical technology, has an opportunity to transform health care. we talked about robotics, we just launched, outside of the u.s., our soft tissue robot, that will compete against intuitive, but as you and i talked about, we had our spine robot out there for a number of years now, and we're really seeing the impact of this, and talking to spine surgeons over the last couple of month, you know, the combination of

robotics, and imaging, and navigation, all wrapped around, and now data in the eye, we just added an artificial intelligence planning software to plan the spine procedure and have the robot executed precisely and able to follow-up and examine the imageages and access the image system directly and we're getting phenomenal outcomes, way better than the past in spine. i think we're poised to transform. and then finally, i have to take the bait on the brain. it is a light space. the brain and central nervous system and health care, and we continue to launch, we talked about the deep brain stimulation for parkinson's disease and other neurological conditions. continue to launch new cutting edge technology that is, that can listen to signals in the central nervous system and then adjust the therapy and we just launched a clinical trial, for parkinson's, to close the loop, and adjust the therapy, specific to that patient, so it is very exciting, very exciting opportunities

across the medical technology space. >> but again, we want to explain to people, before medtronic got involved with brain stem, the procedure had been, it was at ucsf where they put a chip in your head and you got literally prongs hanging out of your head and that is unacceptable, 95% success rate, meaning 5% fatality unacceptable to the american people i think that you have to some degree, as you know, and i'm not being too quiz cal but falling behind abbott lab, glucose monitor, falling behind dex-com, that's not the way medtronic likes to handle things when will you take back this category >> sure, jim, we have game y across the portfolio but we like to call balls and strikes and one area we have fallen behind is the glucose monitoring area but two months ago we doubled down our investment in diabetes, including bringing in blackstone to help with that.

and we're seeing the benefit of that we just launched, over the last couple of months, our new pump system in europe, right? this is our latest pump system, with our new sensor, and our extended wear set, all of the peripherals around it to last longer, seven day, the longest in the industry, and we are getting phenomenal feedback from patients on use ability. usability, but also the best clinical outcomes in the industry, now time and range as they measure it, you know, how often that patient is in the acceptable ranges of blood glucose. we have to get that in the united states, and it's pending fda approval, but that's a leading indicator that we're on our way back. >> yes, that's exactly where abbot started and i think the world of abbot competition is good. health care professionals always in your wheel house. you have 70 conditions in the human body you address yesterday in a very overlooked announcement alphabet's division opened up a really important

initiative trying to be able to figure out request hca, which is a prominent partner of medtronic, something that would give you the empirical data, you ought to use this medtronic product, that, will you be involved in the most revolutionary behind the scenes depiction of what can be done between artificial intelligence and medicine. >> you're hitting on a huge theme. we're called it data enabled therapies. the use of data and artificial intelligence has the opportunity to transform, so we're very proud of the fact at medtronic r that we serve 80 million patients every year. we can take that to 800million until the next couple of years, and we spend a lot of time, we've got data that's like gold coming from our devices, whether it be a chronic condition, like a cardiac condition, on our pacemakers or implantable defibrillators, we're getting

very valuable , sensitive and specific data from patients, and we have unique data in the hospital around the surgical procedures, and this data is gold, and we plan to mine that gold, and there will be partnerships, you know, whether it be with big tech companies like google or microsoft, et cetera, as well as with large health systems i think you're going to see more of this. medtronic, we're in the middle of this, given the amount of data we have, and the fidelity of that data, and the impact it will have is lower cost and more access. >> i want to thank you first of all, i'm chief spokesperson for the american migraine foundation, your neuromodulation business, it's breakthrough. people think nobody can figure out the brain. medtronic can, i want to thank you, jeffrey for coming on "squawk on the street. just keep doing that great work. you're saving a lot of people lives. >> thank you, thanks for your support. >> dow is up 247 we're back after a quick break

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jim you've got quite a show tonight. >> it's time to bring it like the old ed sullivan show, it's a really big show, marc benioff, dirk van de put

laura al ber with a complete blow out carter. we have to find out how enrique is doing because hp is the backbone of work at home, and sonia. >> every night, i don't know if it gets ratings, it's a heck of a lineup. >> who cares, i'm learning more than anybody i'm very excited about it, and no spac ceos, real ceos. >> no coin base. i know you want that. >> i want that it's for the kids. >> just keep it up all day that's incredible. >> enrique lores used to come on with us. >> and dirk van de put >> i try to go out with the person who ran tates when it was

another regime >> malomars. >> thank you, guys >> eventually, jim, your promo is going to be the s&p 500 is our guest. >> just the good part. thank you, guys, love it. >> we'll see you tonight, "mad money. when we come back senate minority leader mitch mcconnell, the budget, the economic agenda as the dow gets to its highest level since may 10

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good thursday morning, welcome to another hour of "squawk on the street," i'm carl quintanilla with david faber and leslie picker. morgan brennan is on assignment. nasdaq, though, not making much progress, trying to get green for the month. still needs another 220 points pending home sales are out a few moments ago, drop 44, up 51-7. we'll be joined by mitch mcconnell, discussing the gop response to the president's infrastructure plan. a big interview you do not want

to miss. in the meantime, let's get to leslie, see what's moving this morning. lp. >> we are 30 minutes into the trading session. here are the three big movers we are watching focusing on retail specifically in their earnings best buy shares off the highs of the morning. eps coming in almost a dollar above estimates, sales jumping by 36% the company raising full year guidance that stock up 2.7% right now dollar tree moving in the opposite direction a beat on the top and bottom lines, lowering outlook for the full year. shares currently trading 7% lower, and finally, william sonoma, the house where retailer benefitting from consumers continuing to invest in their homes, eps coming in at $2.93 compared to street estimates of a buck 83. right now, shares trading a bit lower today. david. >> thank you, leslie as you know, leslie, of course the story you have also been following closely, a stunning

loss yesterday, still in process to a certain extent for exxon mobil, in the fight for the tiny activist firm, ng 1 which managed to get institutional support to seat at least two new directors on exxon mobil's board, and of course that is something that many believe would not have been the case, of course, in fact, even a week ago might not have been the case as i reported earlier on "squawk on the street". over the weekend, there had been a thought that there had been support enough garnered from the major index funds, including black rock and/or state street, and vanguard and black rock or state street that they would be supportive of what we heard earlier in the week from exxon mobil, namely that they would appoint a new director with energy experience and a new director with so called climate transition experience to the board over the next 12 months. that support eroded somehow or changed and the index funds, of course, ultimately appear not to have supported exxon mobil's

nominees or supported engine one from at least two or from what i understand, the likely possibility that a third director nominated by engine one will actually join the board we'll get a preliminary tally in a few days from exxon mobil, it could be a couple of weeks before they fully sort out the vote leslie, sort of a stunning outcome, and one that forces us to examine if for the future, the changing nature of index funds to some steextent and wher this was an exxon mobil specific fund, and which have tied brands up closely with esf investing, favor an esg platform if it's put to them in a proxy vote. doesn't mean it will necessarily be the case, of course there's been long time frustration with exxon mobile amongst shareholders, a level of

arrogance from the company, not necessarily under the administration of mr. woods, but previous to that that may have been in this vote. it was a stunning outcome, and one that certainly we have to focus on beyond its ramifications for exxon mobil. >> you bring up a fantastic point. a lot of the parent companies for etfs, they have been on the record especially in 2020 saying they will support sustainability initiatives, so when you have a situation like this at exxon, it doesn't matter that engine number one only had a .02% stake and had invested just a mere $40 million into a $250 billion giant, the fact that they had been on the record means that it would take a lot for them to vote against any sustainability or proposal. and they better have a good reason for doing so, and so that's what you saw happened yesterday, and it really kind o redefines the whole meaning of the word activist.

>> carl, it's a story that we will keep a close eye on, not just for exxon mobil but broadly speaking esf investment as well. >> absolutely a landmark day, some argue, in oil and gas yesterday. guys it's been a very busy day in washington, d.c., both on infrastructure and budget. our ylan mui joins us with more. >> hi, carl, president biden plans to request an additional $5 trillion in spending over the next decade when he releases his first budget tomorrow. that is according to a source familiar with this document. the additional spending would largely go toward paying for his infrastructure and families plans that would totally amount to $5 trillion over the decade now, those opposed, this would also raise taxes on the wealthy as well as big corporations and i'm told the white house will project tax revenue will rise by 3.6 trillion over the next decade that means there would be a net deficit increase of $1.4 trillion. but the white house budget shows

that deficits are starting to shrink in 2030 because those temporary spending increases are coupled with permanent tax hikes. that also means the white house does not see inflation becoming an issue it would top out at 2.3% during the decade for the next fiscal year, the white house will propose $300 billion in additional spending, putting the total requests for fy 22 at $6 trillion. but of course the president's budget is just a blueprint it is congress that controls the purse strings, so guys, that fiscal reality could look very different as the white house continues to negotiate with republicans over priorities such as infrastructure, which we're seeing play out today. carl >> which we're going to get to right now, elon. thank you. let's bring in exclusively, the republican response to the infrastructure proposal from the white house and talk about the broader economic agenda, senate minority leader mitch mcconnell, it's always good to have you we appreciate your time. good morning. >> good morning. pleasure to be with you. >> it's been a bit of a running joke in washington what exactly

infrastructure is, but it's pretty clear from your counter offer what you believe it is >> yeah, i think you had shelley moore capito on your program earlier today. she's our leader on the infrastructure bipartisan negotiation. out of her committee came a traditional infrastructure package, just this week. we also are engaged with the administration, trying to reach an agreement part of the problem as you suggest is what is the definition of infrastructure we pretty much understand it's roads, bridges, ports, broad band, traditional infrastructure the democrats would like to spend a lot more speaking of their spending habits, so far this administration has recommended we spend 7 trillion additional dollars this year. that would be more than we spent in adjusted inflation dollars to win world war ii so they have huge spending

desire, and as your introduction suggested, a great desire to add in $3.6 trillion in additional taxes on top of it >> so the question for some this morning is how much new spending is involved in this proposal senator toomey suggested earlier this morning there's enough unspent funds in covid relief that could be directed toward this do we have a new spending number >> well, look, senator toomey's point is well made but let me quote larry summers who was bill clinton's secretary of the treasury, and barack obama's head of the council of economic advisers, he said at the beginning of the year that the previous package, the so-called rescue package would create a wave of inflation, and only this week, he reiterated that happened just as he predicted, but it also included this extra bonus on top of state unemployment insurance that's keeping people from going back to work. so that's what they've already

done and now they seem to want to double down and do more. what we would like to see done is a bipartisan agreement on traditional infrastructure, and much of it could be paid for by this additional money that's already been sent down to states and localities, many of which are in great shape financially, and have just received an incredible bonus of borrowed money from us. >> senator, you can't blame americans who might even be listening to you right now, and want infrastructure of some kind to be passed, for being somewhat cynical on the possibility of it i mean, in your long career as both majority and minority leader under both democratic and republican administrations, tell me when was the last time that there was a major, an important piece of legislation passed in a bipartisan manner by congress? >> we're going to do one this week the endless frontiers act, the lead on our side is senator todd

young from indiana the majority leader is the leader on the democratic side, a bipartisan effort to do a better job of competing with china on the technologies of the future, for example, artificial intelligence we have already passed four major bipartisan bills this year we do bipartisan work on important things all the time. i don't criticize you but that's a democratic talking point that somehow we never do anything together we do it frequently, almost on a weekly basis. >> i guess when it comes to some of the larger issues, though, facing our country, you remember the failures to do so more so perhaps than some of the successes you site there there are house democratic majority of a handful of seats, they don't have a mandate of, so

we have a difference of opinion on big issues, yes, we frequently don't go forward if we can't reach an agreement. >> with this agreement in particular, senator, do you believe that there is still more room to maneuver here. i know that you just put forth a counter offer, is this your final offer? >> we're going to keep talking and i understand the president's willing to keep talking and we think the president is going to be more reasonablethan some of the people surrounding him, we would like to get an outcome on a significant infrastructure package and what we have already done on a senate basis is more than we have done over a multiyear infrastructure bill, so we're open to spending some more, what we're not open to is going back and reopening the 2017 tax bill. remember in february of 2020, we had the best economy we've had in half a century. principle reason, the 2017 tax

bill we're not willing to reopen that, but there are other ways to pay for a significant infrastructure package and we hope to reach an agreement with the democrats to do just that. >> what other ways are there, without reopening that 2017 tax bill, would you be open to additional financing, you m mentioned kind of redirecting that covid relief, what other ways are you thinking about? >> the best way to do is reopening the covid relief package, and re-purposing the massive amount of money. states are getting so much money, they honestly don't know what to do with, and they like infrastructure, all the states like infrastructure. it ought to be a way that we could pay for a significant portion of what we spend beyond the traditional amount of money that comes in from the gas tax, the gap teen that and what we can agree to could easily be paid for by the massive amount

of money we sent down to states and localities. >> leader watching your statements and tweets the last couple of days, you have expressed a real interest in inflation, rising prices for gasoline, and steel and commodities, which we talk about all the time i wonder if you're worried that the inflation we are seeing will be durable and long lasting, and how you separate it from opening economy -- from opening an economy the way we have in the last six to 12 months. >> well, the new administration inherited three incredibly effective vaccines the country was turning the corner, beginning to come back, and then they poured all this money on top of it, and rather than let me quote larry summers who predicted exactly what's happened if we passed the bill we have already passed which was almost $2 trillion, by the way,

we did on an bipartisan basis, there was an earlier question about whether we do anything on a bipartisan basis everything we did last year to tackle the pandemic was done on a bipartisan basis i was the majority leader at the time we did it the old fashioned way, by working together. but conditions had changed by the beginning of this year our dear friends on the other side act as if nothing has changed. well, this is not april of 2020. this is the spring of 2021 things are opening up. things are considerably better we ought to pass legislation, crafted to the condition we find ourselves in now, not 12 months ago. >> shortly after the president's election was made official, politico did a piece about your relationship with the president. they argue that it had been forged over many years as senate

colleague, you were the only senate republican to attend beau biden's funeral in 2017, i wonder how important that personal dynamic has been to you to try and get compromise around these various policies >> we have an excellent personal relationship, we did the three biggest deals during the obama years when the president was the vice president, i was the senate leader on the republican side. we have an excellent personal relationship, and hopefully at some point here this administration will in a sense kind of sober up and realize they don't have a massive mandate in congress to do all of the things they're trying to do. at that point, it seems to me we have a good opportunity to meet in the middle and continue to tackle some of the big problems in this country that need attention and the endless frontiers bill that's on the floor of the senate right now is a good example of that >> finally, leader, i know we're here to talk about the economy

i have to ask you about this statement from joe manchin about 30 minutes ago about the january 6th commission he say there's no excuse for any republican to vote against the commission democrats have agreed to everything they have asked for mitch mcconnell has made this his political position thinking it will help his 2022 elections. is there any room to maneuver on a commission >> yeah, look. let's just look at the situation. on the january 6th incident, we all saw what happened. we were witnesses. we were under assault by the insurrection so we know what happened what's being done about it well, you have the fbi pursuing the department of justice, pursuing everybody who encroached on the capitol. there have been massive numbers of arrests already already. massive numbers of arrests we have two senate committees that are going to come out shortly with recommendation about exactly what kind of security adjustments we need to make here at the capitol to prevent that from happening

again. that is the answer to the problem. if we set up this commission, i think the basic goal of our democratic friends is to keep relitigating in public what happened back on january 6th rather than getting to a quick solution through arrests of those who did it and security adjustments to make sure it never happens again. >> leader, we appreciate your time as always, and we'll continue to discuss infrastructure in light of this new counter. thanks for your time as always >> okay. thank you. >> mitch mcconnell interesting set of circumstances and a lot thrown at us, david, really in the last hour between this offer and budget and discussions about how much spending is need ed as the leader said, citing larry summers, inflation is a different story when you've got a vaccine. >> listen, some of the language that leader mcconnell used there certainly would give one hope that they might actually be able

to reach a deal, given they're close to a trillion, the administration is down to, what, 1.7 trillion window the president would like a win, carl, and at the same time, and the reason i ask the question i did, granted he cited certain legislation that we may be unfamiliar with when you think about some of the key challenges that this country faces and the inability of congress, of course, to come to any real bipartisan agreement on those, you do wonder whether they will be able to figure out a way through here but they seem to be at least willing to talk and are getting a little bit closer. >> yeah, the actual gap itself has narrowed over time you know, obviously a big sticking point here is how to pay for it, and senator mcconnell made it very very clear that, you know, reopening the 2017 tax bill is off the table. they need to find other ways to pay for this plan, so the question becomes can you find those in a way that would narrow further the gap that already exists between the two sides, if need be, and i think that's something to watch as these

negotiations unfold. >> yeah, elizabeth warren's on the tape, guys, saying this is not a serious counter offer but the reason i ask that question about the relationship with the president is that it's not exactly clear that she speaks for the white house. we're going to keep our eyes out for responses from the west wing team in the meantime, get a quick break here, a look at the road map for the rest of the hour the greening of cryptocurrency facing pressures over stability efforts. they're not your grandparents scrubs, trendy medical ware seller figs, the founder will join us. after a bad day for big oil, what are the remaining head winds for the oil and gas industry the ceo of continental resources joins us they're stock is up 100% for the year "squawk on the street" is just getting started. stay with us you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator.

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welcome back, now time for our etf spotlight. taking a look at the energy etf excel up 35% this year crude oil prices helping the move higher on pace for the 6th positive month in the last seven. continental resources giving a boost to the sector overall, up 95% in 2021. and david, for more on that company and the stock move, we have a great guest with us today. >> that's right. let's bring in william barry, the ceo of continental resources. joining us this morning. nice to have you with us

you know, i want to talk to you about continental. i do want to get your reaction to the big news yesterday, broadly speaking in your entry, exxon mobil and the success of the activist investor in terms of a platform. does that make you think about things differently in terms of the way you run your business? >> good morning, david, and it really doesn't efc has been part of our dna for a long time. it's something we always felt was important to help steward the company. as you go forward, i think what you're seeing from the things we saw yesterday in the news, esg is continuing to be an important part of the dialogue it has to be a part of the dialogue with countries and companies working together on this there's a lot of focus on the east side of it. what really needs to be done is it needs to be a complimentary discussion we think the discussion about the societal piece is significantly under represented in the dialogue. you need to blend those two things together as you guard,

but the stewardship, and i'll make one more comment on this. if you look at what president biden said in his address to congress, he made a statement that only 15% of the carbon dioxide, greenhouse gas emissions are coming from the united states, and to congress, we cannot do that alone, and that's absolutely a true statement. the u.s. cannot do it lone, although we have done better than any country out there in reducing emissions toward the paris goal still, you've got to go in and put it in a complimentary form working with other governments, and only the federal government can do that. we as companies can do so much, but 85% of this has to be addressed by countries other than the united states >> yeah, well, you know, in terms of the outlook, longer femur for your business, the investments choosing to make today might pay off in the long run. yesterday, ford says, hey, by 2030, 8 1/2 years from now, 40% of our fleet, volume, is going to be electric

does that make you think differently at all about your end product? >> the guy came out with a prognostication that you would be seeing somewhere around peak gasoline, possibly this year, and that's not an unreasonable thesis to say gasoline is going to peak. electric vehicles have a huge role to play in the society and the future of the world. that said, crude is still going to play a very important part. crude and natural gas, if you look at the energy consumption around the world there's a billion people in the world without access to electricity. there's another 2 billion worth under service with regard to energy so there's a huge population that is not getting the energy they need to be at the right level on a quality of life basis. so that's still there, and even the folks that are looking at the analysis and saying it's going to peak, it's going to come down. what's going to happen over time is crude, natural gas. going to continue to play a big role in the future of the energy mix. the whole world needs lots of

forms of energy. petroleum is one of them. >> but currently that's certainly the case, looking ahead to the future, decades from now even, if traditional forms of energy do start to play a smaller role, is that something that you're focused on maybe investing in areas that some of the activists are pushing exxon to pivot toward with regard to renewable sources of energy, really changing the whole make up of their business model. i know you said in your most recent earnings call it's incumbent on the industry to try to take a look at reducing first emissions and second at carbon capture, do you see a necessity to invest in new types of energy, renewable types of energy, clean energy, is that part of the continental business model of the future. >> i wouldn't describe it as a necessity. i would describe it as an opportunity, and so as we look at what we're going to be doing in the future, you know, there are opportunities in the commercial space and things we see as potential commercial opportunities in alternative

energy those are always opportunities we'll consider i think what you're seeing with the carbon capture, the 45 q that's had a lot of discussion in dc at this point in time. that 45 q, which is the incentive to go and capture the carbon and underground storage, that probably is not adequate to drive the incentive levels to the appropriate level that we really need to be at probably needs to be twice that, and hopefully over time, congress will take a look at that and say, we need to drive behavior by upping the 45 q. wind, solar, they're all subsidized, prices are going down we would like to see the playing field in an unsubsidized world, and some of these things are going to be economic opportunities for companies like ourself in the future. >> just to be clear, you're saying if there were a doubling of the 45 q tax credits for carbon capture, you believe it would make much more economic sense for your business to be able to lower its carbon footprint. >> the things we're doing is

first and foremost, addressing scope 1, a 23% reduction, continuing on that slope these are things we're focusing on what do we actually control. with carbon capture, what that's going to be able to do is go out and try to take capture out of some of these emission points, put them underground, long-term storage. it is a viable approach technologically, it's not economically viable today. >> let's move to the present moment and what business looks like in terms of demand. a lot of people think we're in the midst of a significant growth spurt, not just here but many places around the world that would result in more yuse f your product, do you agree >> there was a pretty significant overhang in inventory that was out there that's been worked off actually in the oecd company. the non-oecd is an overhang, 200 million barrels, so we've got another 100, 150 days before the

inventory overhang goes away on top of that, though, there is a capacity overhang that's still somewhere around excess of 5 million barrels a day. if you look at what opec plus has as far as production capability, it's probably 7 plus million barrels a day, over and above where we are today, normally you see that balance in the 2 to 3 range, still some overcapacity, the fundamentals are improving, and they're not there yet. >> right we can't expect to see you producing a lot more anytime soon, i guess. >> we made statements that we think it's appropriate to be improving production, increasing production 3 to 5% we have a $1.4 billion budget. we're starting in the beginning of the year and keeping with that the end of the year mr. berry, appreciate your time. >> thank you very much good visiting with you guys. >> dow has come off of a session high, although the nasdaq has gone green let's get a news update with rahel solomon. >> here's what's happening at this hour. the death toll from yesterday's

san jose rail yard shooting is now 9. a 49-year-old transit worker died overnight after he was rushed to the hospital in critical condition the gunman killed himself when police arrived the victims are between the ages of 29 and 63. severe weather in kansas, including unconfirmed reports of a tornado, that weather took out power lines and damaged some structures there are, however, no reports of deaths or injuries. and in northern texas, video of a tornado strengthening across a road. fortunately this did fizzle out before it could do significant damage. body cam video showing two austin police officers pulling an apparently unresponsive driver from a burning truck here the man had a medical emergency as he was backing into a parking spot the truck was in park but the driver's foot apparently stayed on the accelerator, causing the tires to then spin in place and catch fire two of the officers as they pulled that man out. he did suffer potentially life

threatening smoke inhalation injuries you're now up to date. carl, back to you. rahel, thank you very much still ahead, scrutiny ramping up over the environmental impact of course of crypto we're joined by the owner of one of the largest bitcoin mining in the area when "squawk on the street" comes right back if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity.

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. block chain completing acquisition of one stone u.s the owner and operator of the largest bitcoin mining and hosting facility

jason, block chain ceo joins us. thanks for taking the time. >> thanks for having me. appreciate the opportunity. >> i wonder if you have been rattled about fed speak about crypto or elon musk's tweets about sustainability or the price action in bitcoin itself over the last couple of months. >> you know, bitcoin has always been volatile, i have been involved with bitcoin for a long time i have been up and down the roller coaster, it's something i'm very comfortable with at this point i'm a believer in the long-term utility of bitcoin while the volatility is exciting, sometimes good, sometimes bad, i try not to let it, you know, cloud the bigger focus of what's going on here. you're right, there's a lot of talk about bitcoin mining and energy lately. it's a common criticism about bitcoin but i think the message that's not told enough here, the close relationship that bitcoin mining has with renewable

energy bitcoin miners use renewable energy more so than any major industry or commercial application out there. i think that's a story that needs to be told a lot more. i had the opportunity this past weekend, myself, a few other bitcoin mining ceos, had a conversation with makichael sailor, and elon musk talking about thrks tis, talking about s as an industry you're going to see a lot more public bitcoin miners talking about their energy consumption and helping to tell the story and set the record straight. >> right is that going to be a north american conversation? is it going to include any players who mine in china? if not, are we left with sort of that classic climate discussion, which is you can do all you want at home, but unless the world as a whole agrees on these standards, then it's not really going to move the needle >> well, i think it should be a worldwide discussion, carl i think bitcoin is a global phenomenon bitcoin mining is all over the world. and i encourage bony miners all

o -- bitcoin miners to talk about their energy consumption and how much renewable you use even in china, a lot of bitcoin miners are using hydro electric power. energy is the number one production cost for bitcoin miners we're incentivized to find the cheaper power as possible. a lot of the bitcoin is powered by hydro electric power because there's that under utilized bitcoin miner. there's a lot of coal as well. what we have been seeing recently is certain regions in china cracking down on bitcoin miners operating in a lot of coal heavy regions but fairly, all regions in china, so i suspect a growing trend we're going to see is more bitcoin hash rate moving out of china, moving all over the world. i expect we're going to see a big growth here in north america. a big growth here in the united states because of how much renewable energy is being developed here and the

opportunity that gives for bitcoin miners. >> jason, in your conversation -- sorry, carl, go ahead. >> no, lp, it's your turn. >> jason, i was curious in your conversations with elon musk whether he seemed more open to embracing bitcoin in a bigger way since you pointed out the sustainability element to it and the move toward more renewable sources of electricity did he seem willing to, you know, make another about face here >> well, i mean, i don't want to speak for anyone i think elon is based on all the statements you've made, and based on what tesla has done, you have seen bitcoin as a treasury management tool i believe elon is a believer in bitcoin. i think the tweets we have seen recently is really pointing out the criticism. in our conversation with him, his advice was to be more transparent about what's going on and help tell the story, so the critics don't have this type

of ammunition. the thing about bitcoin is it's so transparent that's a good thing, but the bad thing is the downside to that is it's very easy for people to make an educated guess on how much energy consumption it's using. you don't see that in other industries, right, like no one has a very accurate measurement of how much energy video games use, how much energy social media uses, et cetera, but those are still worthwhile applications so i think, you know, his advice for us and, you know, something we're all -- we've already been working on heavily as public company ceos is just being transparent about energy mix so we can get this story more mainstream about our relationship with renewable sources. >> right and we all remember seeing the chart, basically bitcoin's energy use is equal to that of the country of finland, it's a pretty big amount. tell me about in the name of transparency, tell me about windstone, this recent acquisition. >> sure.

>> how much of generating capacity that they're going to be using to mine bitcoin is coming from renewable sources. >> so windstone is a part of the ercot energy market, which i think is an ideal model for energy markets, it's deregulated, well interconnected, and it has -- texas it self has a lot of high potential for renewable sources, that's why we're seeing so much wind and solar being conducted there. on its mix in 2021 is about 50% natural gas, 25% wind, and about 13 1/2% coal, but that coal number is down from 18%. so a big drop in coal as a generation source of ercot year over year, and solar, previously not even on the map for energy composition in the ercot grid is almost 4%. solar, utility grid solar panels are becoming a lot cheaper to produce, and ercot is an ideal

market to develop these because it's deregulated, because there's opportunity, there's business opportunity for renewable here it's driven by market conditions, not politicians. so i think we should expect a trend in ercot, where we're going to see more and more wind and solar generation sources being developed, and that's going to make that grid greener and greener, and that's one of the major reasons we're very happy to be setting up shop down in texas >> finally, jason, you know, your point about historical volatility is well taken, and for many drops, like we have seen in the past couple of months are not new i do wonder if given the dollars now that are exposed to the asset if the notion that it will be an efficient payment mechanism over time has taken a hit because of this kind of volatility >> i think what we're in the middle of is still the industry. bitcoin is a new thing, growing in adoption, quite rapidly,

really at the institutional adoption phase of bitcoin, which is exciting. but we still have a lot of segmented liquidity, we still have, you know, not the same level of volume that you see in very very mature assets, although, still a very liquid marketplace. so, you know, i kind of think the question comes down to is bitcoin, is its purpose for payments or digital goal as a store value. i think bitcoin is whatever the users wants it to be to me, we look at bitcoin as digital gold, so in that regard, you know, the volatility with a long time preference is not as important. >> fascinating and a topic that our viewers literally cannot get enough of. jason, we hope you'll come back. thank you. >> absolutely. thank you for having me. >> meantime, nvidia is out with earnings last night, revenue up 84 jensen wong talking about crypto

mining on the call. >> it's hard to estimate exactly how much and where crypto mining is being done. however, we can only assume that the vast majority of it is contributed by professional miners, especially when the amount of money increases tremendously >> a lot more on nvidia and all the other tech movers at 11:00 a.m. eastern on t"tech check," don't go anywhere, "squawk on the street" is back in three

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if you can stomach sudden drops in the crypto space, jim bianco believes it can trade off. more "squawk on the street" ahead.

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on a significant infrastructure package, and what we have already recommended on a bipartisan basis out of one of the senate committees just this week is more than we've ever done over a multiyear infrastructure bill. so we're open to spending some more what we're not open to is going back and reopening the 2017 tax bill >> all right open to spending some more this involving the infrastructure package, of course, the republicans putting out their counter proposal this morning. coming closer to the democrats' proposal, but still a pretty large $700 billion gap there, carl but mcconnell indicating that he would be potentially willing to spend more, potentially willing to come back to the table. quite a dose of optimism from the senate minority leader this morning. >> a little bit. i mean, certainly more than we sometimes see in exchanges like this oftentimes a proposal is met with a statement saying it's dead on arrival, david, that's not been the case at least

according to some of the news wires today citing sources close to the administration. the biden white house, that this counter is at least being considered seriously. >> yeah. mcconnell making perhaps a direct appeal to the president saying he's a lot more reasonable than a lot of the people around him. i thought that was interesting you know, but reasonable. than a lot of the people around him. i thought that was interesting you know, but listen, taxes being off the table becomes a key issue. obviously, as we know, the biden administration has suggested or wants, in fact, the corporate tax raise to be raised to 28 from 21. it certainly appears there is not an ability to compromise, but, again, we'll be watching all of it very, very closely it's good to hear from minority leader mcconnell let's get over now to dominic chu. dom. >> a sector in particular may be dovetailing off some of those

comments you guys were mentioning the stocks are generally higher overall. every sector is nearly positive today because of the upbeats jobless number from a sector professional, it's the industrial stocks among the leaders today. some notable gains, though, in the aerospace side of things, including names like general electric, boeing, as well, boeing not only leads the dow this morning, but it's tracking for its best week in more than two months so those boeing shares are influential. the cofounders and co-coes join us next plus, getting an upgrade from ford to a price target of $17 per share. the firm says they have confidence in the financial

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medical apparelmaker figgs will begin trading on the nyse

this morning joining us now, heather and trina. congrats to you both i'm trying to under the business i think you have 1.3 million active customers as of the end of last year, up from 600,000 the year priority. and 62% of your net revenues came from repeat how big is this market to begin with >> the health care apparel market is massive. it's a $12 billion market in the united states. it's $79 billion globally. we actually feel like those numbers are a bit understated. what we offer to health care professional sess way beyond scrubs and some other health care apparel items we're providing a lot of lifestyle products for our health care professionals to go to work and be at work and go from work, on shift, off shift, head to toe.

and at 263 million in net revenue in 2020, we feel like we're just getting started that's a 2% market share in the u.s. we're just getting started on what is to come for figgs. >> and what is your average price point? given the wide variety of s sal salary, basically? >> sure. i mean, our tops are about $35 our pants are about $45. although we are a premium product, we create premium products, we look to ensure that they are both affordable and accessible for our health care professionals. about two-thirds of our customers make less than $100,000 a year. so it's important for us to create products that are both affordable and accessible. >> you said about 98% of your products are sold through your digital platform as you look to expand and grow into the valuation, are you considering more of a brick &

mortar footprint as some other brands have done previously such as warby parker? what is your growth strategy >> so in terms of retail, if we ever do it, we're going to do it because of the brand and we're going to do it in places where our health care professionals are. so whether it's right near a hospital, a dense area of where offices are and in terms of our growth strategy, we're going to continue to grow online and we're going going to continue to grow in our app and direct to consumer all the way, whether it's retail or online. >> and you were the guinea pigs for this robin hood program, ipo access that gave retail investors more of an opportunity to buy shares of the ipo price about 1% of your deal was allocated to retail investors through this platform. so 5.8 million, give or take how did that work out and how is

it different than the traditional retail allocation that you would have in pretty much any ipo >> so we were super proud to partner with robin hood on providing access to our health care professional toes be able to invest for an ipo normally those opportunities are just for wall street insiders and other types of investors so being able to provide this opportunity was really important to us and it goes back to our broader mission of celebrating and empowering and serving the health care community. >> heather, it's not often when we see two co-ceos and from an organizational front, how do you guys split up responsibilities and get to final decision making? >> so i think it goes back to having the same core values, the same vision of the company since we have cofounders and co-coes, i believe that we are

able to run faster, run more efficient and get more done. and it's a lot of fun, as well but we have a team behind us it's not just us, it's an exceptional team that we're going to keep growing. >> and we're seeing a lot of video here should i expect to see medical professionals out and about or is this largely for the work environment? >> this is for the work environment. today we went public on the new york stock exchange and we launched those two colors. it's the jade and the graphite today. we're very proud >> i'm sure you are. we will be following closely appreciate both of you joining us >> thank you >> thank you so much >> we're keeping an eye on the market as we do at this time the s&p 500 is up .23%

>> as we mentioned earlier, some of the retail earnings that came out did show a slump in eps. so that is an interesting counter to what we're seeing in the broader indexes today, what's been going po with retail relative to expectations >> that is going to do it for us on "squawk on the street." take tuned because "tech check" startsnow. >> good thursday morning and welcome to "tech check." today, nvidia and snowflake forecast something monster years ahead. so why are the stocks down this morning? we will explain. plus, names like twitter and tesla having their best week in more than a month.

we'll break down what is