weekend. >> thank you, you too,dom. let's take a look at the live shot of the nasdaq market site, and our gleaming set that is awaiting our return on tuesday. andrew, i will see you there on tuesday. >> in person. >> finally getting back. >> are we doing elbow bumps, hugs, kisses, what are we doing? >> elbow bumps we'll see you guys next weekend. have a great weekend right now, it's time for "squawk on the street" good friday morning. welc squawk on the street i'm carl quintanilla, with david faber and jim cramer our road map begins with the return of the meme stock

amc doubled this week and others are along for the ride. >> the last trading day of may with marketed headed for what appears to be a winning week on growing optimism over the u.s. economic recovery. and bitcoin, tumbling again. why ark's cathie wood is blaming elon musk and esg investors for the recent decline carl >> certainly no declines in some of these meme names, jim, which i know you've been vocal about on twitter it's not just gamestop and amc, beyond meat is now being thrown in the mix how does this color the overall market >> look, i think that the meme stocks have to broaden out i think one of the things that has hurt the theme of the meme is that they just play with two stocks, they go after gamestop, and we're waiting obviously for the savior, ryan cohen, he has been a bit of a goodow character, and amc, adam aron

could take advantage of it and do a $2 billion convert, we be a fool not to and raise $2 billion and get rid of high cost debt. so there's a solution there. and beyond meat's got a huge deal, with mcdonald's and kfc. kfc china david is going to be gigantic for ethan brown so those who are criticizing me for this, do not understand that this service, the cafeterias, have been closed, and i think that stock is ready to roll. >> i know, but you're talking about that one based on your actual fundamentals. based on an acceleration of growth for the company >> exactly. >> and that's so different than amc. not that amc isn't going to grow but let me go through some numbers here if i can. >> if you want to let the facts get in the way >> in 2020, they had a weighted average, total shares of about 117 million. and now we know, incredible, they survived, they survived in part because of the wall street bets crowd and what they're willing to do here and to his credit, adam aron took advantage of it and sold stock, so they went from 117 million shares to

what is now about 470 million shares >> right. >> and their two largest shareholders by the way took advantage of this opportunity, and that's silver lake, remember back in january, on the original move-up, silver lake sold 44 million share, the average price they sold back then was $16. it was found money for silver lake which thought this was bankruptcy, and then very recently, and i think we have this as well, just a week ago, a week ago, dalian sold let's call it 30 million share, average cost, average price, excuse me of 14. and they got out remember they were the ones who took this company private, amy this 2012 and took it public again, $2.6 billion deal back then jim, the stock is more than doubled in just, what, about a week, dalian may be looking at themselves, we got kind of lucky, didn't we, but maybe we could have waited a week and meanwhile we're talking about a company that is in the best of cases will do 427 million in adjusted ebitda in

2022, put that below a 15, 16 market value and you get 40 times. >> well, i think i want to look at it differently, david >> okay. >> i don't think the buyers care at all about any of that >> okay. >> i think the buyers are playing a new game and that is let's take stocks higher that we like. and move them. because hedge fund does it all the time they come on air, they say i like roblox to 130 and that's fine have so why can't this group of people say i like gamestop to 350. what's the difference? they want the freedom to be able to say the same things that hedge funds say. how about a hedge fund david who comes on and at a really bad moment in the market and says that hell's coming >> okay, you're referring to bill - >> no. >> yes you are. >> no. >> yes you are.

>> who called the bottom basically with his hell's coming comment. >> it was him. >> yes. >> okay. how is that different? >> i think he called that blackstone and hilton both that day. both if you bought them -- >> did hell come >> no. >> did it even visit did it knock on the door >> no. >> was there an appointment in samara john o'hara's best? >> no. >> what it was carl, was a tremendous opportunity to buy stock much lower totally coincidental but these people want these stocks to go higher. and i applaud their decision to take what they want higher >> even if it means nothing to do with the fundamentals which you have relied on throughout your career as at least some sort of base case for the arguments you make as to whether to buy or sell a security? >> it's a tale told by idiots, signifying nothing, right? it's macbeth.

>> okay. >> it's full of sound and fury, though, david. >> it's got a lot of sound and fury. >> jim, back in january, when this began, and we referenced the silver lake sale, the amc stock back then if you told me that gamestop would still be or if you total melvin and plotkin that it would be a $250 stock many months later, nobody would have expected that. >> why are you continuing to associate the stock with the company? i am telling you that they don't have anything to do with each other. >> okay. >> playing a new game. who first said that, one of the great stock authority, van morrison, playing a new game carl, they do not care what price they buy things at they care that the stock goes higher it's a new phenomena they regard it as being hatred of wall street and the people who wear suits.

i often think that because i work at goldman, i wear brioni, and i had a hedge fund, i am public enemy number one, and if you read my mentions column, carl, i certainly do not belong anywhere, anywhere, even with my kids, and i tell you, that their anger, we had greenfield on earlier, is, i think, wrong, but their desire to move stocks is a new thing, carl, and it's much more like the -- my father sold games when he was younger, he sold a game called "stocks and bonds" by 3 m, it was the same thing, you got to pay stocks up. >> jim, a lot of this getting centered around you personally, adam aron tweeted about the legendary jim cramer and your comments about amc, and jim cramer pitches the beyond meat long thesis. you have written a book called "get rich carefully" and long

said if you have 20% gains, ring the register what happens that advice that you've historically given? >> and that's a great -- you cut me to the quick. i feel like that i was surprised that adam went to, he goes from abington, we were at springfield spartans, that's, of course, also good friends with a person who contributes to us, chip sonneveldt, i have long cheered adam with what he did with starwood, vail and i think he knows he can take advantage of this by doing a $2 billion convert in order to be able to clean up the balance sheet but carl, you're right, i am astonished by what's happening i know that there was a beyond meat piece that came out this week from bernstein. they went from sell to buy and it has all the things that i've been highlighting including some, and i've been of course talking about ethan brown, and the remarkable deals with mcdonald's and yes kentucky

fried that have not been reflected, plus it has always been at reopen america, because there are so many cafeterias that sell beyond meat. i think he's going to have a sharply better than expected quarter. but i recognize that have i joined this army, they hate me so much, they would regard me as -- i'm benedict arnold to these guy, david. >> you may want to read what many argue sur best book - >> confessions of a -- >> correct. >> that is a level that i showed a level of self hatred and mass kix that frankly shocked everyone >> really? >> everyone involved. >> my former wife karen cramer came out fabulous in that book and she and my daughter were on the new jersey turnpike, i wish them well. >>dy not come out looking good. >> you came out looking good. >> no. >> no only karen did. >> it's all right. >> we'll keep an eye on --

>> it is a classic. >> all of these so-called meme stocks >> so-called memes. >> so-called all so called. >> i'll go with so called. >> david, where are you on gamestop, with ryan cohen, the co-founder of chewy, david. >> he was. i have no -- >> i got a million for him, including bitcoin palace, and maybe taking over from this one outfit tether, apparently david, which is not allowed to participate in new york, which i always found it to be ill-advised, that raises eyebrow, that's my term for what i really think when something is wrong. >> you want to move on to large companies with real earnings, and true prospects how about hp or salesforce? >> you had such a star-studded group of guests last night >> i studied for days for that day. >> as you should have. >> we have dell earnings. >> salesforce had the best quarter ever. >> costco. >> costco had a great quarter. rich with a conference call and he kept saying to you, take out

a piece of paper and do these numbers. which basically just said analysts, you could just get your butt off, and stop waiting for me to give you the numbers. >> there was a lot of calculations that you had to do. there was, salesforce was a huge number he showed you huge operating cash flow which i know is a number that you care tremendously about and hewlett packard, hp, a lot of people feel is controversial because a lot of people feel it is the peak and enrique says it's not the peak, and gap is making a comeback, led by old navy, athleta, banana republic, not yet, but getting there. >> one of the three company, at least three companies, jim, that have raised guidance, gap, ulta and salesforce. >> ulta. >> some of these two-year stats jim, i mean revenue up 89 is a number we're starting to get used to out of gap but up 8% on a two-year stack is, we're doing even better than we were

pre-covid. >> single is, the ceo is doing a remarkable job david, denim. >> denim. >> denim, as themes, it's denim super cycle. and they're there. >> it's the american fabric. >> denim is? >> yes, i think so i heard that somewhere. >> that's levi's. >> overall, denim. >> mickey drexler said that. denim. >> he came on the earlier show - >> he did, the earlier show. >> "squawk box." >> broke my heart. >> broke my heart, too broke my heart, too. >> yeah. >> but i'm the tin man >> yeah. >> you are >> i know. you're looking you're searching for your heart. listen to the gap ceo? >> i was going to say it is an existential issue. >> let's listen to what the gap ceo had to say >> the experience in stores matters. and our stores are really, really important it involves our digital momentum, our $6 billion digital business as well around the world, so both matter, and

showing up with excellence, with an experience that's unique is really a big deal so with that, i will say that more to come on raising the experience >> what do you think >> look, i think it's for real i think, remember, they do have a lot of big data, they did not talk about the previous ceo, i think it's a marriage of art and science. they have the right stuff, and they also have good infrastructure to be able to pull it off, and athleta, david, is the leader here and i think that gap is the ideal company for the hybrid person who works and is formally in, just hanging out in their, gap gives you the clothes that you need and i'm not quite sure where you got that shirt, it might have been from men's warehouse, but it could have been from gap. >> you are insulting my shirt? it's a little old but it's a nice shirt >> are you wearing a t-shirt in

order to preserve the shirt? >> no, i don't wear t-shirts ever. >> do your shirts pill >> everything pills. >> that was early in my career i had a brown -- >> i can'twait to sit next to carl because carl knows how to dress versus whatever the heck you had. >> i had a brown suit from ginsburg, that was fab >> i had a suit. -- >> green sort of stripe to it. really something >> no one dresses like you i would be proud to sit next to you. >> we're going to get there one of these days guys, we're working on that. in the meantime, we'll take a break here and talk about some of the borlgt regaback and forth regarding the budget as well as the heels of headlines yesterday. nasdaq needs 226 points to get green for may. we're back in a minute best deals on all smartphones.r let me break it down. you got your new customers — they get our best deals. you got your existing customers — they also get our best deals.

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counter has about less than 300 billion in new spending, where as the biden plan has 1.7 trillion, of new spending, so more than a trillion apart and they've got a lot of talking to do. >> i don't know whether talking will matter. i think we're back into that world where nothing's allowed to happen that's one of the reasons why the stocks i think has gone up because if nothing happen, they're not going to raise any taxes. i think we're completely back into a stalemate david, when i listened to that interview, i said that was an interview which basically just said, hey, we're not changing our status, versus democrats >> right. >> nothing goes down. >> i asked that question about bipartisanship, and minority leader responded with a bill that has come to the fore very quickly a number of other examples but i think when it comes to a larger issue, whether it's taxes, infrastructure, immigration, climate, when you think about some of the biggest issues, there's no ability to expect that there's going to be a real consensus in any way, or

a bipartisan bill that comes out of the congress or at all, on those, and so does that fall, does this fall into that category, jim? you know, they seem somewhat closer together, but to the point that's made by the democrats now, apparently a lot of it is going to be from aid that already was given to the states and that's what senator mcconnell was trying to make clear, so not that much new money, so maybe not as close as you might think, given the numbers themselves, of 928 billion versus 1.7 billion. >> how about the 6 trillion number that's being floated? >> for the budget. >> yes. >> what do you think about that? >> it is a very large number. >> yes >> yes >> and i think that we're back into a world where frankly getting ready to do nothing because nothing happens. >> you will have a budget. >> but saying we got the money. >> and we're going to run -- we've been running forever and they will be very sizable. that's why people like crypto, david. >> they are expecting economic growth. >> crypto? >> no, not yet

>> that's because they're not printing a lot more bitcoin. >> they're not printing 6 trillion >> well, let's just say that it is nothing done. >> we'll see, guys i mean goldman also points out the government is set to spend 5.6 trillion, even if nobody does anything. so the number, the 6 until is getting headlines but not materially different we'll take a break here. final day of may on a trading basis starts in a few moments. don't go away. with cutting-edge tech, world-class interiors, and peerless design... their only competition is each other. the incomparable mercedes-benz suvs. extraordinary runs in the family. lease the glb 250 suv for just $429 a month at your local mercedes-benz dealer.

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>> i thought corey sue berry did a fantastic job in the conference call and you have to understand what is going on is this customer demand for technology products in the home. extraordinarily high it's driven by continued focus on the home, but it comes as many aspects of our lives including working, learning, cooking, entertaining, redecorating, remodeling, and what i'm saying is, bolstered by government stimulus, that the theme is still for real, david, and everyone keeps wondering when it will run out laura alber, the unbelievable ceo of williams sonoma on "mad money" says no, it's not running out there. 's just a change in what people do and they don't think it's going to stop. >> new street research i'm sure will get to it in the downgrade of apple has to do with the high end consumer perhaps not being as enthusiastic in terms of making those kinds of purchases as things open up and they spend their money on different things. >> look, all i know is that best buy says, look, from a

merchandise perspective, strong sales, across all, virtually all products and service, the biggest contributor, home theater, computing and appliances, very lard to get appliances, another reason to buy whirlpool by the way and a lot of people think this is the last quarter that is going to happen which is why that stock is where it is. >> okay a lot more stocks to keep an eye on including the downgrade of apple keep it right here back with an opening bell.

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you just saw a 50% drop so the idea that the super psyche wool never happen again, that's out the window and i do think it was precipitated by the esg movement, and this notion which was exacerbated by elon musk that there are some real environmental problems here, with bitcoin, with the mining of bitcoin, and so i think that a lot of institutional buying went on pause >> that's cathie wood at the coin base conference yesterday

guys talking about deflation in bitcoin and deflation in general which she says jim, is an equal or greater risk than outright inflation. yesterday, though, was a tough day for bitcoin, kuroda added to the criticism. solomon and dime-more bad things to say in front of the house. >> look, if you want to know criticism about her deflation theory, all you've got to do is go on to page six of the conversation call of costco, where they actually list all the inflationary items, and david, it is transient, as much as i want to believe, this is an extraordinary, higher labor, higher freight, higher transportation, higher container, higher port, port delay, increased, this is a list by a very rigorous cfo of things that have changed everything >> so is that changing your view because it has been an important one in our ongoing sort of coverage of this which is the key really we talk about the key for this

market over the next six months. it's inflation, and you've been saying transitory. you're a believer in powell and his ability to keep it contained. >> well, 35 to 50% increase in the incoming containers this year versus last i thought this was something that u.s. port to head back overseas has gone from approximately 25 days to 50 days >> that said, you keep saying, bond market is just hanging right in there >> as long as the bond market is hanging in there, then they ignore even the great rich gallante, one of the most seminally brilliant cfos of our time. >> okay. and he's at costco and he says there's inflation. >> i found it worrisome. it jarred my view. >> it did. >> and he's the man. gallante, people want to understand how conference calls are done, go and see, and read rich gallante and you will feel

concerned. i don't want jay pow toll read this. >> i'm going to do that right now. i want to take a look at exactly what you said about inflation. >> here you go, partner. >> thank you >> there's the opening bell, guys at the nyse and the nasdaq i think the nyse, it's dr. gottlieb, ringing the opening bell, having said that we should declare a short-term victory, jim, over covid, and the president will make some comments in virginia today over exactly that, declining cases were down 91%, in case, from the january peak, and we've got half of all americans with at least one dose, jim, 165 million americans. >> i thought that gottlieb today, whom i regard as being the premiere person and i wish he ran this for our government, gave us the freedom to be able to have a great time this week, don't go crazy, obviously, and

governor murphy basically said take your masks off inside, i think that's great and it's, we're back, we're absolutely back. and i think that i detected, from dr. gottlieb, that it's time, david, that it's time that we just say resume your life >> he has been a consistent voice of reason. and always, advising caution when it was warned and then realizing that too much caution can also have an impact. >> and he was not happy with - >> as opposed to the cdc, which sees no downside in extraordinary caution even when unwarranted. >> right. >> i think many parents of school-aged kids would argue there's plenty of down side. >> i do think that the increasing discussion about wuhan and that it was -- >> he helped spark that. >> yes, he did. >> he put on twitter, a great piece. >> and it changed my mind. >> and i read it and it was a long piece and i learned about the fern cleavage and all of

those things, and a very strong piece of journalism and when gottlieb says read it, you read it. >> gottlieb is a treasure, carl. he also serves on the board of pfizer -- >> and i wonder if he says hello, if he doesn't shake hands. he doesn't he didn't shake hands before this he said hi, i'm dr. gottlieb - >> salute. >> people want to shake again. >> carl, it's back >> how's our stocks doing. >> jim, your point about inflation is interesting your point about inflation is interesting, because the yield curve has not budged in three months and long-term inflation expectations have come down. we've had misses in housing. we've had misses in retail sales. we've had misses in confidence in durables. i mean the things you're talking about on costco sound like bottlenecks. >> yes, and i think that housing got to a price that's too high and people are pausing now, i'm not going to agree with cathie wood that deflation is

the problem. but i do think that there are a bunch of things that finally got to the price of people saying i'm going to wait and that's what people said powell would happen, i'm going to wait and bottlenecks can be cured. >> thank you >> you're welcome. >> but they're not yet >> supply chain, supply chain, supply chain, i just read what you told me to read from the costco cfo and you heard from any number of other companies and it is a huge issue and causing inflation. >> finding workers i was at one of the best restaurants the other day, carl, same pub, and people who used to be in new york, they disappeared. >> they left they went back to wherever their hometowns might have been. >> construction. >> i'm hearing it constantly. >> you're hearing it too. >> absolutely. not just from you. but from others who are in the business as well it is a big issue. >> and david - >> there are people right now shall especially as now things have opened up and you can't staff and you can't figure out a way to fully staff a kitchenor a wait staff i don't need to tell you

you're dealing with it firsthand. >> lisa is washing dishes. my wife. can't find a dishwasher. >> see, david, that's what i'm talking about here $34, 470 million shares outstanding. don't forget the 10 billion in debt by the way. >> 10 billion in debt. >> i didn't do ebitda versus enterprise value, i did it versus equity value. and enterprise value, you're talking about 26, $27 billion enterprise value >> we're going to the movies >> yes. >> and have you been to a movie theater yet? i haven't. >> no, i haven't lysol spray the back of the seat >> surfaces. not an issue. >> that's right. >> that was a big canard, it comes from viral load in a movie theater. but i'm not worried about that now. i can go to the movies if they made anything good i liked mayor of eastham which

you trashed during the break. >> i didn't trash it. >> inconsistent writing and character development. >> kate winslet. >> she is great. no one is taking anything away from her performance >> don't mess with kate winslet with jim, david. i mean i think we can safely say he gets a little defensive because of that crush, and quite frankly, jim, i can't blame you. >> and when she says things like murray, like i do, like merry christmas, it's just, i said how did she learn. it how did she get - >> i can't wait until she comes to the movies and we can go to the theaters and watch her. >> i want a selfie with her more than anyone else in the world. >> more than 27 million in adjusted ebitda. that was a report from 24th of may, where they had a sell on the stock, their target price was $3.70. at citi. so their expected share price return was - >> i think he's awful. 10 billion in debt

470 million outstanding shares >> well, that's almost - >> remember, he didn't want to do, he wanted 500 million share vote that he could do, and he didn't do that >> it's amazing. >> easily could be on some island right now can't find him >> guys, we're watching boeing on these reported delays in dreamliner deliveries and now some word from the faa let's get to phil lebeau this morning. hey, phil. >> carl, we are hearing from the faa as boeing has delayed deliveries, essentially halting for now, temporarily, further deliveries of new 787 dreamliners. at issue is the inspection analysis of these aircraft before they are delivered. looking specifically at where different sections are joined together, and some of the shimming issues that have come up over the last year. boeing wants to do targeted analysis, before saying yeah, this plane is good to go, that's

not good enough for the faa, it has released a statement saying boeing still needs to show that its proposed inspection method would meet faa's federal safety regulations. the faa is waiting for additional data from boeing before determining whether the company's solution meets safety regulations. since the faa has not approved boeing's proposal, boeing chose to temporarily stop deliveries to its customers shares of boeing down more tha 1% today, and the undercurrent here, guys, is the criticism that the faa has received in washington, for being way too cozy to boeing in the past, when it comes to signing off on aircraft all of this goes back to the 737 max. and that criticism extends to the 787 dream liner inspection process. there have been some in washington who have said look, the faa has to be more diligent about holding boeing's feet to the fire so what you have here is boeing saying, or the faa saying to boeing, give us further details about how you

plan to do these inspection analysis determinations, and then we will tell you if that meets our guidelines >> phil, shouldn't management be in seattle right now, 24/7, camping out trying to figure out what's going on with the execution of this company? >> i think that's a growing question and you heard what michael o'leary said from ryan air, we had him on "squawk box," about a week, week and a half ago, and he was very supportive of dave calhoun and the upper management at boeing, but he blasted the commercial airplane division at boeing, saying what's going on in seattle he repeatedly said somebody has to get seattle to get its act together and i'm paraphrasing there that's essentially what he had to say so this gets to the heart of it, jim. the 787 dreamliner and the broader question about

the commercial airplane division. >> it's never-ending, phil i'm sure the company has told people, listen, it's going to be rocky, there are these issues, and this is boeing, dave calhoun should be in seattle, the top brass should leave chicago, or wherever they are, and just go there, and just baby-sit this and get this thing done because this is not the boeing that you and i know it's just not. >> it seems like it's two steps forward and one step back. two steps forward, and one step back and i think that has people at least questioning whether or not boeing needs to step up, and needs to do more, in terms of its commercial airplane division, and reassuring not only its customers, and regulators, but the investing public that yes, we have our hands around the problem, we will execute better, we will make sure that this is job number one >> amen. great stuff, phil, as always great stuff.

thank you. carl >> phil, thanks to you. in terms of movers, basically the whole dow gain at this moment, jim, is crm and we talked about some of the metrics. also a little more of a refined picture of the contribution from slack. now that they have a better picture of a closing day >> boy, i'll tell you, one of the things that is really exciting, slack's going to close this quarter and one of the things that mark talked about, slack is having an amazing couple of quarters, but that he said every time he does a deal, this stock gets hit. whether it is tableau, exact target, it just happens. it lasts for three quarters and then the stock takes off and you have to buy it when the deal closes he just pointblank said it and that's what people are getting to. >> the strategy. >> yes. >> get out and/or short crm once they announce a deal and as they get close to close, buy it it works every time, right >> yes, the meme people haven't done that. >> david, another 25 million shares, 30 million shares of amc has traded since i talked to you

last >> i'm a meme person >> how's gamestop doing today? >> i don't know. >> david, ryan cohen is going there. >> you suggested so many different business models for that company the fact that they haven't taken you up on it i find insulting. >> the company you go to to buy ethereum, when you have to buy ethereum, and you're john ledger and you got to get in, i want to be able to go to gamestop. >> by the way, we haven't looked at bed, bath and beyond. that was another one and that moved up a lot this week. >> have you been to the stores, david? have you seen how good they look >> remember that >> completely, you didn't even bother to say, this was john came in, he brings in trenton, a fantastic merchant and next thing you know they get rid of half of the skus even though it is heavily shorted, it is a much better store than it used to be. and we're going to have kids going back to college, and david, you're going to go bed,

bath and beyond, that's where you get the stuff. >> i'm aware i'm aware. >> especially in boston. the best one. >> is it >> yes. >> okay. >> i found this thing called amazon is pretty helpful they'll actually have it come right to your door. >> amazon? >> i will check it out sometime. >> not bad >> we found out where he shops >> jim, we haven't gotten to, we haven't touched on ulta, highest now since early march. >> what a quarter. >> they raised the guidance, jim. gross margins came in ahead. >> i'm kind of blown away by how well they're doing this is a store, can you imagine, this is a store where they do people's hair, okay? in the midst of a pandemic they had to close. they have come back stronger than ever. it's skin care high end cosmetics, david. it's an incredible story and by the way, mary dylan stepping down, did a remarkable job but this was a monster good quarter. don't forget the loading program

is bigger than almost every, the loyalty program is bigger than almost anyone and you can look at your face, and you can get, they show how you can best -- you know, reading the news piece about apple when i'm talking about ulta >> yes, i am. >> you insult me, you meme. >> no, i want you to respond to this you need to. >> it's a two-page nonrigorous, i mean, substantial risk, don't you love that? substantial risk david, i read it >> i thought you were going to say -- >> what i thought was i was going to roll it up, david get a spit ball. and do this. >> the stock price this morning, it is nonetheless, given that apple -- >> the market cap is over $2 trillion so i mean it's you know -- that's $120 billion company. so i think it's worth at least a moment all right? >> i'm shaking, boss. >> the install base is growing,

replacement cycles are elongating not specific to the iphone and iphone, 12 cycles pent-up demand, rejuvenating install base which will hamper demand for the next iphone. >> where's the service revenue >> where's china - >> where's tony saying he doesn't care for it? >> well, the report is basically a lot of warmed over, jim. >> thank you. >> it's exactly what bernstein has been warning just with i think more extreme target price >> it was like a parkerhouse roll, warmed over. twice toasted. >> guys, it's been an eventful morning for data as rick santelli knows in chicago, pmi on the way, hey, rick >> yes, indeed chicago pmi is on the way. and as we're awaiting that, let's go to one of my charts first, consumption expenditures. this is the core deflator. and it is a year over year

number i wanted to show you the 3.1% is the highest in 29 years going all the way back to july '92 and the headline year over year pce is the highest since september 2008 and that was at 3.6. so i want to highlight these, because we did see interest rates perk up just a little bit. and as we show the intra-day chart, the 24-architecture chart we can see it popped up twice, and when it opened, the chicago pmi is hitting the wires, 75.2 much hotter than expected. and do keep in mind, 75.2 is the second highest number for this chicago pmi ever, and it started back in february of '67. the all-time high is 81. that was 1973. but right now, you know, 75, comping 1983 what is that 38 years unbelievable so we're definitely seeing some

reopening horsepower show itself, along with some glitches in the road, along with it, and think shortage, chip, cars, housing lumber price, although some of those things are coming down on the input side let's get back to those charts so two spikes in rates, a spike at 3:00 a.m. and a spike before the day, and now it's coming down open the chart up month to date, what is fascinating is we were hovering unchanged on the month, right around 1.61 and starting to dip below that a little bit, and it's significant, we are doing all of this work here, but in the grand scheme of things, rates have been stubbornly high, the corrections, mean can the rallies pushing -- meaning the rallies pushing rates down few and far between and finally let's look at what is going on against foechl and the british pound and the euro currency and especially onshore and offshore, and chinese yuan, and either case, but we are seeing an up week finally in the dollar index. let's go to the charts go back to the 24th.

you can clearly see, we popped up here. and if we were to close, right at the current level, that would actually be a two-week high on the dollar index and i'm not sure if there's any major fundamental i could point to, saying ah-ha, that's why the dollar is up most likely it's trade logistics, long weekend, three days, and some of the exchanges are having early closes like the cash bond market and the futures exchanges. carl, jim, david, back to you. and have a safe happy memorial day weekend. >> same to you, rick thanks so much. so we're right around 42.15 or so. 10-year back below 1.6 the nasdaq still needs a couple hundred points to go green for may. so far we got 67 back in a minute

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as we said earlier, amc has doubled so far this week off the highs but as you can see, year to date 14 00% the number one searched ticker

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trade millions and millions. benchmark came out with a piece saying it's time $100 price product they have the right product at the right time they're in high performance and also in gaming and regular pcs it's important to note people are always looking for something that hasn't moved or is substantially down from where it was sky skyworks, for example. advanced works had it tough. if you could find a line about whether the deal closes early, the stock is going to fly. >> interesting i don't know that's the case >> right >> do you have any expectation it's going to close early? >> i do. >> you do? >> yeah, i do. i want you to have a great memorial day weekend i'm sorry? >> we got a couple more minutes. i wanted to touch on with you the intel impact intel is the second worst performing stock on the dow. we didn't really get to dell or hp where revenues were up 12 at

dell and pc revenue at hp up 27. and within pc's consumer up 72 >> i know. universally the decision is this is the last good quarter kind of like the people who are betting against furniture, betting against anything that's going to make the house better because we're going to go out tone resume our lives so maybe the home office is over. wil william sonoma is in all parts of your new house, like rh the bench mark piece and all the pieces say about intel, they've lost a lot of to -- chiefly, by the way, to nvidia >> right >> nvidia conference call, da vinci was on his game. >> yeah. in the last minute, something else we didn't get to but talked so much about. jim, i don't know if you saw the microsoft bullet and observing

cyber attacks yet again from the threat actor and saying that their play book is to gain access to trusted technology providers and infect their customers. they were behind solar winds they're tracking their activity. >> until we get to where people are going to be prosecuted for violating the foreign corrupt practices, in other words, where we tell individual companies you can't pay so they have no choice, carl, it's not going to end. it's just too easy a shakedown >> yeah. jim, we got mad tonight after what a week you've had congratulations. >> thank you yesterday with the five guests, it got to me i got home and all i could read was the costco quarter i could barely get through other quarters just to see, carl, before we leave, i think we have to see where amc is okay amc is, david, look at this.

it's only 159 million shares have traded. it's at not even 10 and it's at 34 david, look at the balance sheet, carl. just not willing to suspend belief >> or disbelief. >> it has tripled. it's already tripled the 30-day average volume up almost 200% week to date. pretty incredible. jim, we'll see you tonight at 6 pvm. >> and then don't forget, we're about to go downtown where i can finally relieve myself of a man who doesn't wear a tie >> and i can never wear jeans again. >> no. >> when we come back, a billionaire crypto investor on the volatility, the regulation and sustainability of bitcoin and more when we return.

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try nervivenerve relief. i'm dad's greatest sandcastle - and greatest memory! but even i'm not as memorable as eating turkey hill chocolate peanut butter cup ice cream with real cocoa. well, that's the way the sandcastle crumbles. you can't beat turkey hill memories. good friday morning. welcome to another hour of "squawk on the street. a lot more about that in a moment green arrows the nasdaq is struggling a bit here to avoid snapping a six-month win streak

needs a couple hundred points. so far got less than half of that consumer sentiment crossing the tape rick santelli's got that rick >> yes these are the may finals these will take away the prenumbers that we had 82.8 was the number mid month. it now changes to 82.9 that's the final read for may. how does that stack up 82 .9 is the weakest dpgoing bak to february when it was 76.8 we took a little bit of a dip there. but as i said, it's virtually the same as mid month three. we expected a bit of a climb if we look at expectations, expectations at 78.8 77.6 mid month, that improved current conditions, originally mid month, we backtracked to 89.4 here's where it gets interesting. if you look at one-year inflation, up 4.6. this is huge if you look at five to ten-year inflation, 3.0 3.0. you have to go back a ways to

find these numbers especially on the 4.6. i brought a data bank that went back to 2011 not far enough, unfortunately. so we continue to see the inflation data is hot. the question is what word will we label it as we start to get into the thick of it showing up in the marketplace and in interest rates will it be transient or not is what i'm referring to. carl, back to you. >> all right rick, thank you very much. rick santelli. we're going to start in santa monica with morgan brennan who is there for reasons she'll explain. hey, morgan. >> hey, carl that's right i think things are starting to get back to normal here. i'm back out in the field. so let me show you what this is. this is a experimental aircraft. it was custom built by dan robinson the man who co-founded and runs red six. what is red six? it's a national security focussed startup using augmented reality to train fighter pilots

more extensive at lower cost and less risk than traditional methods. we're going to dive into that tech deeper later in the hour and how it's investor of an emerging investment opportunity in the defense sector. first, as we await the first full budget proposal including the wish list of the defense spending, we turn to eamon for a preview of what we can expect. >> it is a big wish list put out by the biden administration. we're expecting more details later today. so far we've been able to uncover a couple items this is a 6 trillion 22 budget but overall, if you take a look, we're looking at about $5 trillion in additional spending over the course of a decade. that's because they're plussing up in a lot of different areas as a result of the american jobs and the families plans under the biden administration there's 3 $.6 trillion in additional revenue in here over

the course of a decade that's largely higher tax rates on the rich and on corporations. it assumes there's an increase in capital gains to 39.6%. that's retro active, occurring back in april. the net deficit impact of all that is $1.4 trillion over the course of a decade but the budget -- the deficit is going to start to shrink in 2030 because the biden administration assumes that spending increases are temporary but the tax hikes will be permanent. and inflation maxes out at 2.3% in the set of assumptions here that we have from the biden administration we're going to expect more details and we'll pour through that later in the day, and this is the friday before memorial day weekend, so you can imagine the biden administration not doing a lot to get a lot of attention around thisas the release of the details goes later into the day so we'll look into there to see what there is that might be of interest to our viewers and bring it to you as soon as we

have it. >> it's going to be a busy day for reporters in d.c. and a busy holiday weekend to your point. senator minority leader mcconnell just yesterday on our show, less than 24 hours ago already signalled because, of course, this is a wish list. it still has to make its way through congress over the coming months already signalled gop opposition to a lot of the spending in this bill so how likely is it to see some of these proposals become realities? and i guess just another piece of the puzzle here, how do we see spending already making its way through congress right now given the fact that you have this big china bill that is advancing among lawmakers that is focussed on r&d and tech spending to counter china? >> we had a weird delay on the china bill you're talking about, mo morgan we'll see where they go today. the senate seems to be backed up a little bit but you're right this is a wish list. no president gets everything they want.

it has to go through congress. mitch mcconnell is an important player in that, but democrats do have the majority, a very thin majority, and the joke up on capitol hill is that senator manchin of west virginia is the majority leader these days because he's the swing vote on everything so he's the guy all of this is going to have to go through. if you want to get a sense of how this is going to look, maybe ask him what he'll tolerate and you'll have a sense of where the biden administration is going to be able to have some success or not as the course of the year goes on. but this gives you a sense of what the biden administration values and what they're messaging here is they're comfortable with the high deficits. they're not really worried about inflation. they think that all of this spending is necessary to rebuild the middle class and to generate an economic boom going forward a decade or so republicans have said you know, they're skeptical of some of the deficit spending although they weren't spending of deficit spending under donald trump. now, they're going to fight some of this. and that's going to be a political battle and we'll see

how it plays out >> yeah. two different parties focussed on rebuilding the middle class but doing so in very different ways eamon javers, we look forward to the headlines from you later today when we get them the defense piece of the proposal now, we know the white house would like to allocate 7 $15 billion. that's a 1.4% increase adjusted for inflation, it's a slight decrease. today's budget request will give insight from the national security priorities thanks to testimony on the hill yesterday, top pentagon officials have already signalled they'd like to with an eye to china among others shed unneeded weapons to spend more on forward looking technologies hyper sonics, artificial intelligence you couple that with a flat lining budget which means the need to do more with less in general. and investors are betting faster, broader adoption of software and systems is in the

cards. case in point, snow point ventures ceo whose new firm is investing in red six even as he continues to run and grow the global defense business that he helped build at palantir >> the character kature is you fund the company for a second and they die in a valley of death i think is their phrase. the idea here is that at least from snow point's perspective is use the learnings where palantir breaks in and we want everyone to benefit the eco system of entrepreneurs building the nation is important to build and the dual purpose technology idea is thriving there's a history of how that helps society. we should embrace that >> now, historically invesiting in startups focussed -- bureaucratic hurdles but the department of defense has been working for a number of years now to change that more than 16 00 startups and

small businesses with more than $1.5 billion in early funding last year alone. though keep in mind, this is minuscule compared to $445 billion in contracts that were awarded last year overall. palantir which was just awarded two dod contract in the past week alone has not only helped knock down some of the barriers to entry, but it's created a template more attractive to investors as well. this leverages government contracting capabilities to help build a commercial business or dual purpose technology as it was referenced in the sound bite that's a concept being employed by a number of startups right now. including red six which while very focussed on selling its platform to the armed services and on fixing this national security piece of the puzzle is also collaborating with epic games on gaming. so if we don't get those innovators -- oh, let's listen to doug talk about that a little bit more >> if we don't get those

innovators like dan and their team to build amazing things that help, we're just going to be making video games. and selling ads. it's like this is important. you can make money too, and that's great because it's the lubricant that gets everything going, but the mission and keeping our nation first is the most important thing, and i think reflecting on memorial day, i'm investing in america. >> all right we're going to have more on red six as well as some of the other names that could change the national security discussion that's going to be later in the hour and carl, it will be a packed hour >> yeah. and as for palantir, as we showed our viewers up almost 8 %. first real trip above the 50-day in several months going back to early february, morgan it's fascinating development as we await more details on budget. in the meantime, a couple earnings movers to get to. sales force is the driver of the

dow. earnings coming in at 1.2 $1 compared to street estimates of 88 % revenue up mark benoff talked about how acquisitions are driving their growth strategy. >> we can see incredible companies we've acquired like exact target and mule soft, and tableau have become a huge part of our performance and the ability to deliver to these amazing customers the solutions they need and slak will be part of that as well. all of our solutions will become slack first, collaboration is the heart of the future and the heart of back to work. >> they do raise the revenue guide, david, modestly on target for the magic number by fiscal 26 >> that's been a magic number for them jim made a point earlier quoting ben benioff. this has been a stock typically penalized after they do a deal

salesforce has grown substantially through acquisition, but often when they get close to the close as they are now with slack, the stock starts to move up, and it's been a time and again pattern for this company given how many acquisitions they've done where investors hold back initially and buy in as they get closer to close. no change here with that same pattern as well. >> yeah. that's a big move on crm back to 240. h sp the other big story lower after results. a narrow earnings beat benefitting from better than expected printing business they talk about the degree to which the chip shortage may impact shortages they talked about future growth opportunities last night on mad. >> we are expanding our focus into end to end applications which is really where we see the

future of the category so we are confident on 3-d and we continue to see it's a growth opportunity of the company >> david, you've covered these guys through multiple kingdoms and ceos pc is up 27 is a real number investors are clearly focusing on the risk of that chip shortage from here on out. >> and questions about how many notebooks they may have on hand in terms of inventory. the stock has had a very -- our viewers can see it's had a good move it's up $40 billion company. the selling haspicked up over the last really last few minutes. the stock was not down as much at the open. dell, as you point out, not responding positively to a good quarter. again, stock has been very strong for some time and investors perhaps seeing this as kind of a peak number at least near-term given so many of the things that led to increased demand maybe abating a bit as everybody gets back, we hope, to

a certain extent to the office, and to work in a different form. there is a take -- taking another look at hp shares. another mover we're keeping an eye on thing is boeing phil has more on that story. phil >> david, take a look at shares of boeing. the company is delaying deliveries of 787 crdream liners the company is delaying those following a request for more information from the faa and all of this has to do with the inspection of dream liners before they're turned over to a customer boeing wants to do more targeted algorithm-based analysis the faa is saying you know what? we need more information as to whether or not that's effective enough the faa out with a statement just within the last hour saying boeing still needs to show that its proposed inspection method would meet the faa federal safety regulations the faa is waiting for

additional data from boeing before determining whether it meets safety regulations since the faa has not approved the proposal, boeing is temporarily topping delivery to the customers. they would like to deliver 10 to 12 of these dream liners every month. this is impacted near-term the question is how long will the delay in deliveries last boeing says it is working with the faa and now it's a question of who whose inspection analysis is the one that the faa wants to go with? is it what boeing is proposal or does the faa say you have to do more than what you're suggesting at this point? >> and as for deliveries, phil, as far as -- there were some dream liners expected to be delivered in the coming week, right? >> sure. yes. there were and remember, they were halted

by boeing from october through march. end of march is generally when they began resuming deliveries of 787 dreamliners they have more that they were scheduled to deliver in the next week or so but those are going to be delayed until they can meet the request from the faa, and again, this is for new dream liners that are being built the ones that are already in service, this has nothing to do with those this is all about what is the process for inspecting new aircraft before they're turned over to a customer >> all right appreciate that, phil. on top of it phil on boeing today as we go to break, let's look at the road map for the rest of the hour bitcoin's volatility, as you know is back we'll talk to a bitcoin billionaire who says musk is the new bad boy of bitcoin restaurants continue to struggle with retiring the ceo of red robin will join us later this hour and the street weighs in on

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speaking at the coin base conference later in the wait cathie wood says she thinks she knows who is to blame for the crypto volatility. >> we saw a 50% drop the idea of a super cycle we thought would never happen is out the window i think it was precipitated by

the esg movement and this notion which was exacerbated by elon musk that there are some real environmental problems here with bitcoin with the mining of bitcoin, and so i think that a lot of institutional buying went on pause >> with more on the recent volatility in the crypto market we're joined we justin sun in a cnbc exclusive it's great to have you listening to that sound bite, i wonder the markets had so much thrown at it in the last few weeks, whether it's chinese regulation or tax day or irs guidelines, or musk i wondered does that come down to musk in your view >> yes i think we can all blame elon musk on that >> what about his tweets or his concern regarding emissions

alarmed you the most >> i believe the comments about crypto is legit. so definitely, i think crypto industry needs to find a way out, especially the energy consumption, and also how to turn bitcoin into an energy friendly crypto, basically crypto that's something also we have been working in the past few years to turn into a crypto which means our energy consumption is to be reduced but stay in the same -- >> so how long of a process do you think that is? i mean, at what point -- i know you're not starting from scratch. the industry has been working on this for a while but how long would it take to be

able to present metrics that say look, we are no more inefficient than any other asset class that uses energy? >> yes i think first of all, we have some options in the industry for example, today bitcoin uses proof of work which means pow. i think p.o.w. we can vibrate through more clean energy instead of coal emergency which is used mostly in china today. and also we have some solution called p.o.s. which means proof of stake you don't need those mining machines to produce block. you just need cloud services to use those blocks which is definitely much more energy friendly than p.o.w

>> justin, i know you believe that we're well past the era of early investors. we're sort of much more in a point of mainstream adoption, and i guess you use the word crypto curious to describe the world. so how in your view do thing play out from here let's call it over the next year or two years when it comes to crypto >> yes i definitely believe right now we are still in early majority so we are going to see a lot of institution interest and consumer interests getting to crypto industry, so i believe we are still in early stage if we talk about markey, i believe right now we are still in bull markets. we just need some adjustments. i believe in q 3 crypto prices will continue to go up >> speaking of flows and

curiosity, i'd love to get your thoughts on nfts, because you were a bidder, not a winning bidder, but a bidder for people. we ourselves have been selling some nfts for charity on behalf of one of our former colleagues who passed away. i wonder do you think that market is also in the early days, or has it received even greater acceptance faster than crypto did originally? >> yes first of all, i believe -- nft is an easy week. you understand how black chain works. so that's why lots of influential people and the celebrities get into crypto space because of nft i believe nft is still in the early stage. most of the people, they don't even have the collection i believe this year we will start to see the first one

million collectors of nft and for the next five to ten years, i believe this number will grow to at least 100 million. so that's why i definitely believe it's in the early stage and we will see more and more art collection or each co-arts will trend to nft and lots of people will start to buy it. >> have you seen a good example of someone who has bought an nft and then sold it is there an aftermarket? are there examples of people who bought and then sold for a profit >> yes i think this is a very common in the crypto industry. recently i just buy 5 pieces of -- i think the price is around $1 million. so every piece is like 200 k

recently i went to nft buy prime. my nft is sold by 250 k. i definitely believe nft is not like as liquid as, like, crypto markets, but definitely, i think lots of people already got profit from selling to other people >> justin, markets moving very fast, and it takes a lot to help our viewers understand the changes. with your help, we appreciate it very much. thanks so much justin sun >> thank you thank you. coming up, labor shortages continue to impact the dining sector we are going to speak with the ceo of red robin about that company's efforts to fully reopen plus more from santa monica where morgan is camped out today. morgan >> i am camped out that is right, david new software that could help

protect even save lives. coming up, we'll take you inside the cockpit of this berkut experimental aircraft to explain what i mean. stay tuned to "squawk on the street." i'm dad's greatest sandcastle - and greatest memory! but even i'm not as memorable as eating turkey hill chocolate peanut butter cup ice cream

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time for our etf spotlight looking at the retail etf, up close to 50% now on the year as the reopening continues foot traffic improves one stock moving higher this morning. ulta off the initial highs but eps came in twice as high as the street was expecting retailer raising the full year guide. cosmetic sales are up as consumers get up public and perhaps without a mask and today's gain has ulta up almost 20% on the year yeah take a look at that. also take a look at this as we head to break. dordstown motors, a hold the price target is well below where the current price is $8. they say while the market opportunity is large, and they note as well their truck did receive interest from customers, there's considerable uncertainty ahead including supply chain issues yeah owthink many investors would kn that.

all right. squawk on the street coming right back the world's first fully autonomous vehicle is almost at the finish line what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq pain? yeah. here. aspercreme with max-strength* lidocaine. works fast and lasts. keep it. you're gonna need it. kick pain in the aspercreme i became a sofi member because i needed to consolidate my credit card debt. i needed just one simple way to pay it all off. it was an easy decision to apply with sofi loans, just based on the interest rate and how much i would be saving. there was only one that stood out and one that actually made sense and that was sofi personal loans. it felt so freeing. i felt like i was finally out of this neverending trap of interest and payments and debt.

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good morning here is your cnbc news update at this hour. the olympics are just eight weeks away and japan's prime minister says that the next three weeks will be crucial in the country's effort to speed up vaccinations and slow the spread of covid infections the state of emergency in other areas is being extend tlud june 20th. malaysia reports 8300 new covid cases today, the country has a two-week total lockdown next tuesday. all business and economic activities will be shut down and western france, a man there stabbed an officer in a police station taking her gun and running off. that man was later killed in a shootout where two other officers were injured. all the officers are expected to

survive. in philadelphia four firefighters and one other person injured when a fire engine crashed into a building take a look at that. it was responding to a house fire when it collided with another vehicle apparently in an intersection sending it into the building david, apparently it took them hours as they tried to prevent the structure from collapsing on that truck so glad everybody is okay. but a wild video there >> okay. thank you. >> with a labor shortage and rising -- joining us is ceo of red robin. paul, it's great to have you this morning what changes have you made in trying to make sure you can fill your ranks appropriately as you fully reopen >> we've made several changes, and first of all, thank you for having me on this morning. the first thing we did from a technology standpoint is really sed up the process from application to hiring to on

boarding we simplified our training program. especially in the heart of the house. we modularized the training. what we're seeing is that there is a bit of a shift in the work force with i think prepandemic restaurants we're focussed on hiring people with prior experience now we're seeing more people come into the industry it's their first time in it. we wanted to make it less frustrating for them frankly to get hired. we also implemented a new wage progression program. and it's being well accepted it's very transparent. especially in the kitchen -- when a kitchen person is hired, we tell them exactly what their wage progression will be from hire they'll get a wage increase at 90 days at six months, and 18 -- at 12 months and at a year and wefound that that transparency really is helping with retention, especially in

that critical first 90 days. we're actually pleased with what we're seeing in the sense that every week we're getting more applications, and as we said on the earnings call earlier this week, we anticipate being fully staffed and stabilizing staffing situations by early summer this year >> right it's interesting i know in your previous quarter but talked about some labor shortages or the like. and you've gone through things you've done to try to alleviate that in the overall question, paul, that people in your industry simply can't find the workers, i guess you're saying that's not been the case? >> frankly, i think maybe we've been very fortunate. i've heard the same thing, but every week we're seeing an increase in applications, and i think partly we're known for having a great culture for being a great place to work.

i think that's stood us in good stead. if we continue at the pace we're going, as i mentioned earlier, we feel we'll be fully staffed and stabilized it really is about the number of people that are applying and then your conversion rate on that and higher. and actually our conversion rate is almost double what it was prepandemic. so i feel like we're doing the right things on the right course, and it also helps if your company is known for having a good culture in a place where people feel they're comfortable working. >> that's actually really reassuring news. we hope that trend continues i wonder more broadly, just about menu pricing and as you add capacity, can the kitchen keep up or do you have to add lines to keep up with the seating your adding? can you talk about what yield is right now as some of the restaurants have fewer restrictions to work by? >> well, capacity is increasing.

and we are lagging in the industry a bit in the first quarter. we were at 48 % as of the end of period five which we just reported outside of the first quarter we were at 65% from a kitchen capacity standpoint, we see no issues in fact, we just completed a kitchen project where we stress tested the kitchen to see what is the ultimate capacity, because you're aware we just added three virtual brands to our system, and we wanted to have some good data points as to what is the capacity level and the good news is that even as we're reopening dining rooms and adding the virtual brands, and maintaining a sustained off premise sales level that the kitchen capacity is no way --

our average buying is 2.7 in 2019, and we see we could grow that without having any major adjustments to the kitchen >> is it -- is it your sense that we've got a lot of people in the market ringing their hands about soybean prices and chicken prices is the your sense that the worst of that has passed >> i think on soybean oil, maybe a little bit more price pressure from our perspective, we were just making sure that there would be no interruption of supply, and we feel good about that now have alternate suppliers but it's just -- it has to do with the crops and the planting seasons. we think that's something we've managed now and will not be an issue for us chicken i think is going to be an ongoing issue for the next few months

chicken is a little bit less than 10% of our sales, so it's less of a worry for us we can pivot our marketing and messaging to be a bit more focussed on burgers and in the other markets pizza and take some pressure off the chicken. there will be some price pressure on chicken, but we'll run the supply issue on that >> you mentioned the wages what is the progression and the starting wage? >> right now our average wage in the back of the house, and i think we're a bit advantaged, frankly. a big part of our portfolio is west coast based, and as you know, the west coast has really been on a higher minimum wage scale than the rest of the country. so we've already absorbed a lot of that. we're actually just shy of $15 in our average wage in the heart of the house or the kitchen. and so we're not as concerned as

maybe some other brands in terms of minimum wage impact as we go forward. >> got it. paul, appreciate your time >> the progression, we'll be beyond minimum wage. >> thanks again. let's get back to morgan and see what's coming up later in the hour >> that's right. augmented reality outdoors in the air flying at high speeds. we're going to take you inside this headset as we talk about what could be a major market opportunity. that is coming up on the other side of th bakisre

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i am standing inside the airport hang gar of red six.

they are using ar to train fighter pilots it's already working with the air force to begin delivering the product by year's end. what is the tech exactly headsets that integrate with the cockpit to create an august wanted reality experience using fewer aircraft and thus, cutting costs dramatically >> the airplanes you see sitting behind me are the test platforms. think of them as mobile augmented reality flying labs. we've developed the world's first truly outdoor capability in the sky 300 miles per hour pulling gs going upside down that's exciting. it ushers in a new paradigm in training in terms of what's possible >> all right that's dan rbobinson, the co-founder this is the pilot perspective when wearing the headset this is robinson flying using this platform.

here's what he's seeing. this is an aircraft super imposed on his surrounding to interact with and respond to as he does so, the underlying algorithm learns from him. right now the focus is the actual training process, but the applications are going to expand think the possibility of even bio metrics and reading physical reactions. these are data points that could help with screening future pilots as well >> it's a data set that's going to inform a fundamental shift in where we find people >> this is fascinating you're training but also creating a data set that would enable more recruiting? >> ultimately down to recruiting at a fundamental level and other things such as analysis of if you have a particular mission. you remember the move money ball >> yeah. >> think about it like that. those are the four best fighter pilots actually, doesn't data support that for mission set maybe it's joey in the corner that we didn't think about

>> there are future commercial applications as well for example, gaming something we talked about earlier in the show robinson estimates ar could be a trillion dollar market and certainly when it comes to the military specifically, the tech is already gaining traction. microsoft's up to 22 billion hallow lens contract with the army that got a lot of attention. and there are other names to watch as well. red six is one of a growing list of some three dozen venture backed startups focusing on national security working on everything from ai to autonomous systems and drones names that include an drill valued at roughly $4 billion hawk-eye 360 and even on the space launch side, names like rocket lab which is going public via spac also worth noting, there are a number of companies that while nirnlly securing or focusing on

commercial customers are also increasingly working with the dod now including some names that our audience may be familiar with, names with the a flying taxi merging with a spac and publicly trading names including c-3-ai carl >> wow huge implications for efficiency and hopefully safety over the long-term. that is fascinating as you say morgan brennan in santa monica we'll take a break we have a rare downgrade of apple. it's from new street they go to a sell. price target 90. they say iphone demand will not continue brace for a down cycle we'll talk more about on that aut check at 11:00 a.m. eastern inbo 12 minutes. don't go away.

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on this memorial day weekend meg tirrell has a look at how the holiday may shape the rest of the summer. >> we are in a better position this year than last year's memorial day weekend if you look at the case numbers they've been experiencing exponential decay. hospitalizations down and deaths averaging less than 500 per day.

of course, memorial day weekend and holiday weekends in general over the last year have been dangerous for leading to case surges last year's coverage shows that memorial day weekend was tied to the following case surges that started to take off about three weeks later and tripled over the subsequent months. cdc director dr. walensky was asked how she's looking at the risks from this weekend ahead when we have so many more people vaccinated here's what she said. >> i worry that people, we have seen more cases after holidays, but we've never had -- done this where 50% of the country has been vaccinated or 50% of adults have been vaccinated if you're vaccinated go enjoy your memorial day weekend. >> but she says the risk is still very high for people who are not vaccinated and there's a lot of disparities around vaccination rates across the country. you can see by county. some states like texas don't

break out the county level vaccination rates. epidemiologists we spoke with point out in those less vaccinated places you could see surges from the weekend if people get together and, guys, the differences between states and vaccination rates are stark. the top states vermont, hawaii, massachusetts, all 65% to 69% of folks have at least one shot whereas for the lowest states, louisiana, alabama, wyoming, 35% to 37% it's a tale of two countries right now. david? >> meg, thank you. let's get to the cme and rick santelli for the santelli exchange >> thank you, david. you know there's so much going on today, but on fridays, i like to look at big numbers, so today is big number friday we could start out with number one, obviously everybody is thinking about $6 trillion, that's, of course, the biden administration's first proposed budget many issues here that are up in

the air. one, of course, is the retroactive nature of potentially of taxes we saw the big bosses of the banks testifying on each side of the aisle in front of committees over the last couple days and one thing they seem to agree on, you don't necessarily want to shock a system that's just come out of a shock with tax increases, but we're going to have to see a big number the second big number is more about the fed. $485 billion worth of usage at their dollar funding reverse repo facility. here is a chart. this is a $100 billion down here the dollar funding market through the fed post-pandemic, reverse repo market. here's the issue, in the old days, the fed used to adjust rates by basically buying and selling small amounts of securities now they don't they use this parking lot and i'll explain very briefly. it's complicated topic

consider if you have negative interest rates in any country or a negative interest rate instruments, you are getting charged to store your cash there is a way to store your cash for zero interest rates but no penalties, no negative rates, the rrp market it's zero funding and all the zero interest rate policy quantitative easing has created a deluge of cash adjusting this rate and the rate on excess reserves they have a floor and a ceiling. it's a whole new game out there, but unfortunately it makes the treasury the biggest player in town in treasuries and that necessarily isn't a good thing finally, 29 is the last big number and what does that mean 29 was the amount of years we have last seen a year over year personal consumption expenditure numbers at 3.1%. i hear you saying, well you've said many times, san tellty,

year over year rates comparing to low rates even if you look at the headline up 0.6, that was still the highest since 2008 david, back to you >> rick, thank you rick santelli. we'll take a look at shares of amc off the highs of the session, but still up almost 19% at this point. its largest shareholder or at least it was, less than a week ago, sold virtually all its stock at a price half that and they were very happy to have gotten that. we're talking about a company with a $23 billion enterprise value. seen with adjusted ebitda of $470 million next year more "squawk on the street" coming right back. turkey hill chocolate chip cookie dough creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories. how great is it that we get to tell everybody how liberty mutual customizes your car insurance

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we've been talking defense technology and the investor opportunities around that, but it's also memorial day weekend coming up tonight we're going to be taking a closer look at how defense technology actually savings lives. that's going to be in focus when we speak to a retired navy pilot who spent six years as a prisoner of war when his jet was shot down in vietnam he believes in this tech the technology the start-up is developing that could make a difference, we're going to have more on that on the news with

shepherd smith tonight starting at 7:00 p.m. eastern david? >> morgan, always appreciate all the work you do out there in the field. great to see you out there as well have a great long weekend. hope you make it, of course, back home at some point soon. >> you too. >> we're keeping an eye on the markets with the s&p up.022% as we wrap up a week here have a great long weekend, everybody. that will do it for us on "squawk on the street. "techcheck" starts now ♪ good friday morning. welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa amc takes another billion dollars from the shorts, although the stock is below the opening price. an explanation of the mean trade reresurgence is coming up. apple gets a downgrade to sell what's