trading day of june? indication that june to be in for a strong month ahead. an indication that the world's biggest meat supplier hit by a cyber attack. the struggle is real the industry from cars t computers dealing with the chip shortage the intel ceo doesn't see the situation easing any time soon it is tuesday, june 1st, 2021. a very special day on "squawk box" which begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin.

we're in one place back at the nasdaq at times square >> what day we technically, officially leave this place? >> march 11th or something >> i remember seeing you once or twice when i had come back and did the show upstairs. >> i thought it had been over a year i got back here april 20th and i had this place to myself it was empty >> joe is not used to sharing. >> the cat's away. >> huge makeup room office i had my own bathroom, which i liked. >> you can keep it >> now that i've used it just hang on to that >> good way to claim it. >> i went upstairs to hang out and brush my teeth i want to have fresh breath. we're further away -- i think we're safe here? >> yeah. >> extenders here. >> this is good. >> we're vaxxed.

we can hug i have seen it i learned. my eyes are teaching me that the past year i have gotten older. >> i noticed the same thing. i need readers it is good to see both of you, gentlemen. >> you can talk. i can talk we can talk to each other. >> without talking over each other. >> we will still talk over each other. >> without cutting the other one off. let's get you up to speed on the markets. this is the first trading day of june if you checked things out, green arrows dow indicated up by 183 points right now. s&p up by 19 nasdaq up 55 here is how may finished dow up by 1.9% for the month the fourth positive month in a row. its sixth positive month over seven. off nasdaq had a strong week of may. gained 2% for the week that wasn't enough to push the

index back into the black for the month. as we get ready for june, here is a good stat for the bulls s&p has seen a decline since 2015 as for the year so far, here is where the major indices stand. dow up 12% s&p up 11.9% nasdaq up 6.7% this morning, if you check out the treasuries, joe was talking about it 1.622% on the yield. right now, the 30-year is at 2.3% for the "squawk stack," we have the russell 2000 up 0.1% for the year to date that is the eighth month in a row. the longest winning streak since september of 1995. if you were continuing to look at growth versus value growth etf for the month down by

1.4% the value eetf up 1.4%. and for the week, it was up 6% it has been lower three of four months lumber, we have been talking about the elevated prices with the inflation. 12.6% was the decline for the month to date for lumber it breaks a six-month winning streak down 22% in the last three weeks. up 50% year to date and up 250% over the last year how that plays out in real life? an average gain of $36,000 for the average home price for the single family home that is the national association of home builders says. >> i can't believe that's an important metric now it is. it describes a lot of what we have seen. fed or whatever what you attribute it to. it encompasses it all. there were days last week where it was up and nothing else was

up ark needs to stabilize ark needs to bounce. you can see it for the last almost a month. >> about three weeks >> holding on. i never knew cathie wood she used to be on and talking about flying taxis like next year i'm not sure if some of this stuff and people that work there would come on. >> i remember. >> flying taxiing driven by people who came out of ufos. >> i remember all of those conversations. >> a lot of the stuff they said might not be -- a ufo means it is a ufo i think it is somebody is ahead of us that may live on this planet that's probably what it is i don't know >> the chinese >> cathie wood is ahead of us. clearly. >> probably not russia >> probably not.

>> given some of the technology and the vaccine. >> they will now hack your email. we should tell everybody we have a huge lineup of guests to c commemorate us coming together dr. scott gottlieb we will get them in the house. hilton ceo will join us. fanatics executive michael rubin. michael novogratz. angus king, the senator. and thomas friedman and mohamed el-erian >> he's upstairs let's talk about the corporate stories. elon musk saying the price of tesla vehicles pricing because of the pressures in the auto industry

he made the statement with the response to a tweet. tesla increased the model 3 and model y prices intel ceo pat gelsinger saying it could take years for the global chip shortage to resolve itself speaking the trade show in t'aipei. the work from home experience led to the explosive growth which placed a huge strain on global supply chains in other corporate news, i love that, leading into this cloudera near a deal to be taken private by kkr bloomberg puts the price at $17 a share. the data cloud company largest

shareholder is ikon. and eamon javers heavy on this beat. major tech news to talk about. not bacon, that's probably next. the world's largest meat producer that was hit. jbs says units in australia and north america were hit over the weekend by the organized cyber attacks on the information systems. they shutdown the australian operations yesterday and halted processing of jbs largest meat packing plant in canada. the incident may delay transactions with customers and suppliers. it is unclear if jbs shutdown could have any effect on meat prices especially if it drags on for more than a few days it is already spikes prices

sdplcprices >> it is hard to get the same number of people on processing floor. >> this will hasten our move to other things i know they are living, but not centient >> the venus fly trap from "little shop of horrors" you mean >> that one. we will get to eating things that never walk around that may happen. it will be hard impofor me >> insects >> bugs? >> big source of protein they are using insects in all sorts of things to create natural proteins >> i have seen crickets. >> what is the day for the cicadas? think if you didn't know it would happen oh, my gosh.

it is like job are they coming? >> they are in south jersey. brian sullivan has been scooping them up. >> great source of protein crunchy on the outside soft on the inside you heard my joke, right >> i have not. >> one cicada woke up and said to the other cicada after 17 years. what happened to rudy giuliani [ rim shot ] he is still america's mayor? >> i don't know about that i hope that never happens to me. the hair dye you remember >> running down. >> i think mine's more professionally managed >> that's good coming up, amc trading higher this morning. what investors should make of the latest chapter in the meme stock story. as we head to break, check out the big s&p movers

stay tuned you are watching "squawk box" live from the nasdaq three of us. kyle's here walking around taking side shots of my storm as sta stomach. we are live from the nasdaq site we'll be right back. >> announcer: this cnbc program is sponsored by truist wealth where meaningful relationships matter most.

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well come back to "squawk box. check out crypto we have red at the top bitcoin down 1.25% thank god we put erp there now and it doesn't say ripple. those people are like the teslarians of the past i don't know how much they have. you think their entire -- i'm not going to talk about that >> @joesquawk. >> man, up in arms speaking of crypto two robinhood rivals in china are trying to cash in on crypto. foo tu >> foo you >> they are applying for licenses in singapore and the

u.s. with the goal of letting local customers trade digital currencies this comes as chinese regulators are cracking down on crypto. you can have three kids if you so desire. that's the lead story. >> it is amazing. >> you have to have three? >> you have to have two. they are pushing it because the population is aging and it is a real problem if you don't have young people making money and working to take care of the older folks. >> it is nice the government decided that's okay. it is really nice. thank you. >> they changed it to the two-child policy because there were not enough women to marry men. >> what did you do if they violated that? >> you would be punished you would not get certain jobs or live in certain places. >> you i'm done i'm here you are right in line with their requirements, right? perfect. >> perfoect for the sorkin

family we're done >> it is a benefit ready made. >> if you are an ex-pat in china? what if we were the correspondent for cnbc and living in china? i don't think they have ex-pats in china >> it is a weird headline. it makes me think of our system here and their system. i understand it's different. i'm not making any statements. it's weird. >> it is >> the headline. >> it is this is weird, too, but in a different way. investors piling in shares of amc. the stock soaring over the past week it gave back the gains the big box office could signal a summer movie surge talking about movies is sylvia, the chief investment officer as well as sara fisher.

thank you to you both. i didn't go to the movies. did anybody here go to the movies >> nope. >> anybody >> i would like to see "a quiet place 2. >> you want to see that? sylvia did you see a movie? >> i want to see it. i didn't get to the movies this weekend. >> okay. somebody went to the movies. $58 million went to see the movie that becky wants to see. the question is do you think this summer is going to be this blockbuster summer and can you make any rationality of what is happening to amc stock >> i think the summer will be a blockbuster summer with the people getting out to the theaters i don't think it is necessarily going to save the stock. i think the recent run at amc is

attributed to the reddit community. going on the epic momentum run to drive the price up. the fundamentals are cdivorced do i think people will get to the movies and help amc and keep them from bankruptcy i do stellar returns? probably not unless the short-term reddit swings. >> let's say adam announced more money out of the blue. is that good for the stock or bad for the stock? >> i think he has to raise more money. $426 million in rent due $4 billion in debt movie prices and sales have been going down for 19 years or so. i think this stock is so divorced from reality. if you get the reddit community and social media and david versus goliath betting against the short squeeze and pushing it

up, might not matter that may not matter with debt iss issuance it is its own monsterin the market >> so, sara, there is a greater theory here i imagine. what is fascinating, aaron, the ceo of amc has taken to twitter to -- i don't want to say to egg on the meme stock investors in his stock. he is speaking directly to them in the way i have not seen before elon musks of the world do many have not targeted and started to focus and speak to investors like this. >> i think it is a sign of desperation. this is not a crowd or community that val wuating this stock. what he needs to focus is on

getting fundamentals in order. figure out how he can make revenue again. i don't expect theater experiences will bounce back to pre-pandemic levels. he needs to figure out how to make more cash stepping into the meme world is just a distraction >> if you are adam aaron, what would you do >> i think i would try to focus on the fundamentals. pay off the debt get people back into the theater. advertise the fact that social distancing and cleaning of theaters every day advertising these hot movies like "a quiet place 2" and making the theater experience more interesting >> sara, i'll go to you on this. do you think people are not going to the movies because they're scared of covid? i think that is some fear of that or do you think there is a

secular change that is forever and people will want to watch movies at home maybe they go to the movies once and a while as a big night or event, but it is not the same thing ever again >> andrew, the movie theater business has fundamentally changed because of the pandemic. it is never going back there may be some people hesitant because of the coronavirus, but most people are vaccinated at this point, if people are choosing not to go to the theater, this is a lot of them making the cal tu legculation t get a better deal at home. "cruella" was supposed to go toe-to-toe against "a quiet place 2" this weekend. some people thought for $30, i can get the family to sit at home and watch this. it makes perfect economic sense. if you look at theater windows shrinking, this is the reality

from now on. do not expect pre-pandemic theater levels to increase >> the sorkin family was one that shelled out $30 for "cruella." it was worth it, disney. sara and sylvia, thank you i appreciate it. >> thank you when we come back, some airlines are extending bans on booze amid news of rowdy passengers and more altercations on flights details right after this 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. “cracked windshield” take 1. ♪ you say ♪

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welcome back to "squawk box. time for executive edge. we start with a bit of travel news american airlines is joining

southwest on holding off resuming flight alcohol sales after unruly travelers sales will be suspended until september. based on the rise of passenger disruption in flight, we reevaluated the service on board. it has been a topic we talked about last week with sara nelson we spoke with her on friday. she is the international president of the association of flight attendants. >> a lot of times these events are exacerbated by alcohol we have been asking the government and the airlines to make sure that we're not selling alcohol right now because that's only adding to the problem that is very clearly out of control >> she also said many of the tensions are coming from being forced to wear masks and asked to do that this is a federal regulation at this point the flight attendants are the bouncers in the air. they had to deal with a lot of

pushback and angry passengers and nervous passengers at the same time. >> i thought i was losing it i didn't remember her being on i was out friday >> no wonder >> i missed that part. i love that. the news flash you know, a lot of these situations are due to alcohol. really >> the case for a long time. >> thanks for letting me know. >> the guy who worked on wall street jumped up? >> i do. >> i don't have to say the rest. >> i never will forget him it would be zero if alcohol wasn't involved. the total number of cases would be zero. >> cut out alcohol forever. >> on a flight >> it's not good for you at all titude >> there are times it is nice to have a little bit. >> how -- >> one drink limit >> cbd gummies to relax

everybody. smooth it out. >> my dog's tried them >> have you got into them? >> no. martha got them on thursday. the big dog ones and little dog ones they did seem mellow >> i tried to give those to our neighbor who has a dog. >> to the neighbor dog >> the neighbor's dog. the neighbor didn't really like the idea >> you gave it to him without asking >> no, no, no. i handed it over >> people think they are like pot brownies no thc >> it is cbd in the meantime, let's talk sports olympics we were talking about a workplace challenge. mental health. we can talk about that in a second olympics first sports news. the first group of foreign athletes arrived at the tokyo olympics australia's softball team as japan is facing criticism as

covid is plaguing the country. international olympic committee is keeping the games as planned. and to let you know, nbc universal owns the media rights to the olympics in the u.s it is also a sports story, but a workplace issue story. it is to say what happens when one of the tasks that is part of your job effectively is bad for your mental health to me, that is how i sort of frame it as an issue is the task that is part of the job, but clearly she was under pressure did not want to participate in that part of the gig, if you will >> the press conferences for those who don't know naomi osaka dropping out of the french open after being fined $15,000 for skipping the first media event sdplchlt the press

conference should not be part of the game it is bad for her mental health. she is arguing it is bad for the players' mental health interesting issue. >> i went back and watched a video in 2018. she has had serious issues with this and was heart felt. the weird thing is after her first round, she stopped and did a couple of interviews. >> when she was being paid. >> for a company a japanese company which she has a contract with. it is real if you have doubt about it, look back and see previous things she has said and done. it is an impact. >> she has individual -- not all athletes feel comfortable doing it she has a pre-existing condition which she went over which is a

mental health issue. some people don't want to talk after they lose. there are a lot of reasons you think about how well paid -- i don't know do they owe the public an appearance >> i don't envy tennis. >> they say this is part of the gig. steph curry came out in support of her yesterday he said, you know, she was taking an important stand. you had -- >> she's great. >> billie jean king says she is torn because she is trying to figure out both sides of it. >> she wants to win a grand slam to take off the grand slam, it must be serious. we have to go, i guess walgreens and my supermarket aren't requiring masks masks are optional >> does that mean? >> i went in and i'm unable to feel comfortable taking off my mask i know i'll get mail from the

people maskers and un-maskers i'm double vaxxed. now i think everybody is dirty i'll get a cold or flu. >> have you gone 14 months and not gotten sick? >> that's what i mean. you know what? i don't need to interact with anyone don't come over here i have to take it off. here i have never worn one, except here since april. >> now we're here? >> now i want to put one on. although you are far away. coming up, a big lineup. don't go anywhere. if you choose to stay, that would be nice. i don't want to tell you not to. a lot coming up. covering everything you need to know for the markets, sports needs, mask needs. dr. scott gottlieb will be here with us. as we head to break, it is official

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welcome back good news in the fight against covid. the united states has reported the lowest number of cases in more than a year the seven-day average is lowest since march 31st of last year. we are seeing signs that people are ready to travel again. tsa reports more than $1.9 million passed through airports during the holiday weekend that is the most since the pandemic began. the united states continues to see progress, there are more questions about the origins of the virus and the possibility of the lab leak joining us now is dr. scott gottlieb he is the cnbc contributor and

serves on pfizer and illumina. he is announcing his book "uncontrolled spread, why the virus crushed us." scott, congratulations on the book >> thanks, a lot >> let's talk about the issue. this idea of what is happening with the origins of the virus. i know this is something we talked about for a while you have been of the opinion that there is more leaning on the ledger in terms of the side of the lab leak. nothing new we heard of this naturally occurring in the markets. >> that is the challenge of the source which was the probable theory which hasn't budged if anything, that side of the ledger has been fldiminished ov time we havehave exhausted the searco the animal we have done an shaef exhausting

evaluation of the market we ruled out the market as a source of the virus and spread so have the chinese open effic officials. we have not ruled out the they'r thetheor of the source. we can go back and see what the prevalence of infection in the laboratory and the infection back in november and december when this first started to emerge they must have been drawing blood samples of the individuals. especially reported outbreak of some other illness the first thing is you pull blood from lab workers the chinese would have that evidence they haven't neighborhood available. i think that could be

potentipote potentially exculpatory. they have not given the investigators access to the virus strains. to the extent the chinese having evidence to the source and being exculpatory and they haven't provided it. >> scott, i want to talk about your book over what was happening with the administration and what was happening in the states. what went wrong? how did you you start writing this >> i had access to a lot of people over the course of the pandemic i tried to give an insider's view of what was going on. i reviewed the shortcomings. i talk about the political s shortcomings and the federal level and the woes we suffered looking toward the future and what we need to do differently

particularly public health in the lens of national security and prepare domestically and how we conduct foreign operations and surveillance for the threats. among the episodes i detail is the problems that went wrong with the cdc test and rollout of the test the challenges the cdc had in identifying the sources of spread we overestimated the contaminated surfaces and aerosols and droplet transmissions. i talked about the problems rolling out the vaccines and antibody drugs we vaccinated 1.4 million people in nursing homes it took us a month to do that. that is where most of the deaths were occurring we should have had standing up testing for the delivery of vacanv vaccines we tried to apply the model to coronavirus. and it was applicable and many cases it wasn't.

>> scott, this is off topic. this morning, coming in i just happened to see china with the first human case of bird flu h h1n3 i think 300 people died a couple of years ago we worried about it prior to coronavirus. this news was the morning. the first human case in china of h10n3. a 40-year-old man went to the hospitalreleased any reason we should think about this at all, scott >> it has to be something we're thinking about i talk about that in the book of the preparations that went on in 2004 and 2005 when i was in the government to prepare against the pandemic flu we will have another threat to us we will have another pandemic.

it could be a form of influenza. we need to look at the rna viruses that transmit as a class. any virus that replicates has a rapid mutation and respiration any of those could be the next pandemic threat. our goal cannot be to mitigate the pandemic we need to prepare to prevent it from happening all together. that means getting surveillance in place globally. we cannot rely on countries sharing source strains and identifying an outbreak. we have to get our tools of national security engaged in this we found the health regulations and w.h.o. was not enough when the outbreak occurred in china

we don't have access to the source strain. >> we should not think this is more than a 1 in a 100 year thing? nothing has changed in terms of population around the globe? travel is one thing that makes it more worrisome. there is no reason to think we'll have these more frequently than once in a century >> there's no statistical probability. they can occur anytime it could happen next year or 100 years. we had zika. we had a pandemic of ebola and h1n1 >> scott, we look forward to talking to you soon. take care. >> thanks, a lot >> we just got back together come on. >> this is easier to do with all of us here we can talk over each other without it being awkward and

setting us off >> raise my hand >> yeah. the tradeoff it is easier >> whispering. >> you can't whisper they can hear you. >> that's okay that's how the sauce is made. angus king will talk about the wake of the colonial pipeline attack and now word of the world's largest meat producer attack. that and so much more. stay tuned to "squawk" as we roll on.

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still to come this morning, hilton ceo joins us with numbers on occupancy rates from th holiday weekend and why business travel might be returning stronger than expected stay tuned we'll be right back. it's by tho. nice. [golf sounds] so, what do you think? i'd go with the 9 iron and try to lay it up by the yetis. i like those. [golf sounds] hey, charles. how's it going out there? good. almost done with my list for father's day. [golf sounds] he's gonna like those. 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,

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america anyway is on the move hotel bookings are up as the economy reopens as we head into the summer travel season lodging stocks have soared over

the past year, even outperforming the overall s&p which has done well. joining us now is hilton worldwide president christopher de desetta. here's all i'll tell you, chris. we tried to do something on the airlines yesterday and i finally put it on speaker phone to get someone to pick up i don't know whether people aren't there or the call volume is so heavy? >> we had a really busy weekend. first of all, thanks for having me it's great to see the three of you in the studio. >> thank you. >> nice getting people back to work we're opening up our world headquarters here slowly by surely starting today. yeah, we had a blockbuster weekend. i think we had -- saturday night

across the united states we were 93% occupied which is certainly the best since covid hit and probably honestly the best saturday night we've ever had. every night is not like that it was a holiday weekend the business is coming back very strong it's obviously being led by leisure at the moment but business travel is starting to pick up some steam the meetings business is starting to pick up some stream. we would expect as we get into the fall of next year you'll see a much steeper recovery. right now this weekend was strong and our bookings for this summer at this point are higher than we saw in 2019 at the peak. so people are getting out. they're feeling safer as vaccination rates go up and should be a really good summer for travel. >> i'm wondering whether the

inclination to want to see people face to face business wise, i wonder if that overcomes the new normal because a lot of people have seen you can do things through zoom but then again i can imagine some big companies would love to have a meeting or a convention or something where everyone gets back together. that could be some pent-up demand there that gets you back to almost prepandemic levels do you think business gets back to prepandemic or will it always be down? >> no, i absolutely believe back to prepandemic levels and then go beyond. i mean, here's the thing first of all, as you point out, joe, there's a ton of pent-up demand that hasn't been released in the business side, but as we get into the late summer and fall and into next year that will be released as you go out, and i have been, and talk to a lot of our customers on the group side, a lot of our big corporate

customers, what they're telling you is this has been a difficult time it's been thanks to the technology that's been available, it's been manage annual but it's unsustainable. they cannot build the culture of their company, they can't build relationships with folks they need around the world, they can't collaborate and innovate and do the things they need to do to drive the strategy and drive it out without having their teams and themselves out on the road. i think the longer that people get stuck in their basements or their closets doing video calls, i think the more it's pointed out to leaders across a broad range of industries that really business travel is a necessary part of doing business but it's the raging debate that i have on every call, every discussion i have with shareholders i would bet a lot that when you

get back to -- when you get to '23 and beyond that business travel and group travel in addition to the leisure business will be back where it was in 2019 and growing beyond that that's certainly what history has said look at technology innovation, it's been around for a long time there was a time not to be pedantic where we didn't have a telephone. when that was invented i guess you never needed to travel again, internet and video conferencing and these are things that are now have been adapted more broadly and not new things go ahead, sorry. >> there's so much to talk about. i wish we had more time. real quickly, internationally i think you're more of a domestic company but internationally you're making huge investments is this the time to do that? >> absolutely.

we're -- you know, we're in a -- we've been out around the world for 70 years i mean, we'rein 121 countries at this point. if you look at our pipeline which is the biggest it's ever been in our history, 60% of it is outside the u.s that's the nice thing about a big, diversified business like ours it's a big world and when some areas slow down, others speed up now everything slowed down during covid, make no bones about it, but from a growth point of view, as an example, china, we're going to have one of the best years we've ever had in china this year because they're ahead of the curve relative to the u.s. and other parts of the world so we're continuing to grow at a very rapid pace and suspect we will in the coming years >> you're going to need room for three kids when they're traveling. >> i've got six kids, joe. >> you'd be in trouble over there. >> i doubled down. i doubled down.

>> i love it congrats wish i had -- i feel like i have more than that >> more now? >> i thought about it. >> never too late. it's never too late. >> what's the maximum number of rollouts, you know, of extra beds you can put in a hotel room that's always the big thing. >> andrew, for you there is no max. you tell me how many you need and we'll put them in there. amen. >> as long as we don't have any fires. >> three generations of sorkin all there. oh, lord thanks, chris. >> good to see you. >> good luck. coming up, amc aouina nnncg stock sale details are next it's hard to hope, hard to cope with crisis. so we get to work. we mend, fighting for every person in every neighborhood; we, the coming of the common good. so dare to care,

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attack senator angus king will join us to talk about what washington thinks should happen next. good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. yes, it is true. you can see it live and in color. we are back in person altogether around the same table this morning right here at the nasdaq joe, you don't get it by yourself anymore. >> no. >> the american flag is gone that was my seat >> keeping it warm for everybody. >> there was not one of these things kyle is back, too. hey, kyle. >> hey. >> hey, kyle he's got the steady cam which

means i can't exhale i never know where he is >> one shot doesn't have that issue. >> at least you still have a full head of hair. >> that's why it's called covid-19 i have a full head -- i'm working on the other things. the gyms haven't been -- the gyms haven't been open really much, right? >> right >> no, not quite >> looking good. >> worked on some overhead resistance went to new highs. >> yeah. >> let's show you u.s. equities. green arrows on this tuesday morning across the board we're looking at the dow up about 215 points you've got the s&p 500 up about 20 and the nasdaq up about 50 points we've got a couple headlines to bring you as well this morning shares of amc rallying in the

pre-market the movie theater operator taking a major jump in the stock price buy. raising nearly 230 million shares to mudget capital it's a 4% premium over friday's closing price. we'll see what folks think about that meantime, trade group airlines for america saying customers receive nearly $13 billion in cash refunds in 2020 as flights were canceled due to the pandemic released the figures in response to criticism from lawmakers over their handling of refunds during the pandemic movie goers returning to the theaters a quiet place part 2 led the way with more than $58 million in ticket sales the highest since the pandemic began. >> get started on airlines they do hate giving back money i mean, that is like one of the

rarest things. they usually do -- got to use it within a year, got to use it for a ticket if it was international -- it's like -- >> do not change names. >> by the time you -- can i use it for someone else? oh, no oh, no, no, no, no so i was surprised to see that number it's from criticism like this that they released the number. once the money goes there, it never comes -- >> never -- >> never it just doesn't. it just doesn't. eamon, eamon, i thought he was going to talk about meat he is going to talk about cyber stuff. we want to talk about the white house giving the gop a week to reach a deal on infrastructure eamon javers whose ears were burning earlier. we talked about you. i thought about you immediately with cyber attacks we need i every day on that beat >> it's always something. >> let's start with this this is infrastructure. >> reporter: yeah, let's start with the transportation secretary, pete buttigieg yesterday or over the weekend

setting this deadline now of june 7th saying that the republicans have about a week after they come back from their memorial day recess which they're on this week to come together with democrats and cut a deal here, otherwise, the administration is hinting they're going to have to move on unilaterally on infrastructure take a look at the math. you see what the problem is. the problem is they're way off in terms of numbers. republican senators want a $928 billion infrastructure plan. biden has proposed 1.7 trillion. they're not too far apart. the republican plan includes only $250 billion in new spending a lot of their numbers are repurposed other spending so the gap here is like 1.4 trillion overall. sticking points are huge including the corporate tax rate, green energy, even the definition of infrastructure itself has been contentious in this negotiation the administration is saying, look, we're going to work with

you for another week or so at some point though they're hinting they're going to have to move on and try the budget reconciliation process in which they believe they could pass this with only democratic votes. we'll see if they can do that, if they can get their own caucus altogether to do that. it will be a massive thing to do on your own. the president said he would prefer to have a bipartisan negotiation with republicans but they can't bring republicans on board. they do have this other option >> more and more we're hearing that as the country is reopening, eamon, you watch some of the sporting events and it's like so great but people are out. >> yeah. >> you wonder how much time. you can't wait too long if you're the biden administration. i know infrastructure is not related to pandemic relief per se but you still can't drag your feet on this or people are going to say, we've spent enough money, let's start thinking about not just walking --

busting the bank on pandemic relief they better move, right? >> yeah, i think that's true i think that's true. look, the other clock that's ticking is the reality of the political clock, right biden knows he may never have as much clout as he has right now politically. he might not have the majorities after the mid-term election. this is his chance to do what he has to do and get as much done as he can. we are in june already believe it or not. so they know that they've got a limited window to get this done. it's not the four years of the term, it's the first year of the term where you have the most clout and do the most legislating. even with the thin margins they know they might not have this much clout going forward if they're going to do this, they have to do it now to your point, that sense of urgency is an important one. as that fades, that takes away from doing this project altogether. >> rates are low, too.

the president mentioned doing that it's sort of a long-standing idea that you have such low rates. >> they have that. that gets to the larger question.

they're coming in and doing the negotiations and in the case of ransom wear. >> they're smart enough to have a number of lows. >> it is cheaper

>> it's just going to be there >> is that what it is. >> michael rubin the ecommerce giant. they will join us after the break to talk about it before we head to that break, check on the markets things are picking up. dow futures right now indicated up 221 points. s&p up by 22 up by 55 on the first trading day of june. "squawk box" will be right back.

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three crypto bulls are teaming up gary vaynerchuk and mike novogratz are launching a digital collectible company called candy digital joining us now michael rubin,

executive chairman hoping to get mike novogratz as well i'm not worried yet. i don't know about you you're up 3-0. closeout would have been nice. i'm not worried. are you worried? talk about the wizards/76ers >> i'm always worried as we get to victory we take nothing for granted. we have the best fans in the world and we hope to proceed to the second round >> just who are you most worried about.

>> i worry about anyone. the truth -- listen, this is the god's honest truth. >> the luckiest guy in the world.

>> the market's been behind up >> they know everything about it novogratz, gary vaynerchuk.

>> for more than a year. it isn't what's going to be good the next several >> tens of millions. digital products take a huge opportunity. >> besides major league rental, who's next and how does the arrangement work, fees and everything else. can you share any of that? >> sure. first of all, we want to start with baseball news baseball's always been a digital innovator. they started streaming games 20 years ago, eight years before anybody else they started the first app in

the app store before anybody else they've got a very digital savvy fan. by the way, it's actually our second biggest business at fanatics people are always surprised how massive our baseball business is it's because how digital the league has been for 20 plus years. we thought it was a great league to start with. so much rich history, so much great stuff to build digital products with. we want to start with our biggest partners and go over time could be entertainment, music. sports is a great place for us to build and this is a place to start. as far as how does it work economically, it's the same as our core business where we share the revenue with our partners and it's going to work the same way here so we're very aligned to build the right long-term business. >> novogratz, can you just -- we haven't got a whole lot of time left some bloom came off the rose for

the whole -- to you it's not shocking, i guess. you thought 40 might be the low on bitcoin do you think it's going to be higher highs and higher lows for forever? you're never going back? >> we're the only -- >> can't unscramble the egg? you're not going back to zero. >> i think we're at the early stages of this revolution. we are i see adoption happening we have pushed candy very similar. the early buyers have all been crypto natives crypto profits gambling on nfts that's not the big-time future of nfts. nfts is going to revolutionize collectibles, digital art, advertising, brands. and so the chance to move 80 million or 82 million of fanatics's customers into the space is thrilling to me it's going to happen it's not going to happen overnight. at galaxy we're building a

business for the long term we're doing the same thing at candy. i really think people are underestimating how transformative blockchain technology is for lots of things sports is a perfect place, right? crypto is tribal sports are tribal. they have these built-in tribal communities. now we're getting them another way to connect that community to their ethos. >> hey, rubin, before you go, a little bit of a curveball. i don't know if you were listening to us in the last hour we were talking about naomi osaka story over the weekend almost as a workplace story about mental health. what's your take on it how would you feel if a player said, you know what, i'm skipping the press conference? >> you know, look, i think any sports organization's responsibility is to work with their players, always pick up what's best for them when you manage any people, there's complexity things are not as straightforward as you think when i saw that obviously you want what's best for, you know,

each player. i think that's just, look, mental health issues are a very serious thing, one that i think sports ownership, in general people around sports need to take seriously it didn't -- things like this don't surprise me. it's just part of putting your best foot forward on the court i think you've seen this in basketball before. you've seen it any sport our responsibility as teams and the league figure out how to work with everyone to figure out how to work best with them and bring attention to these things and use things to help people and help millions of other people who have been struggling with the same issues. >> all right we're going to end it there. novogratz, thank you is this the year, mike -- will you make any long-term predictions? is this the best you've felt about the people you have and your coats and everything? is this the best you've felt that this could be the promised land get to the promised land is this the year >> joe, i've always -- we're

going to end with 400. so if that doesn't show my optimism to the opportunity set. >> talking about the 76ers, novogratz. what are you talking about >> the 76ers i like the 76ers i like joel imbembiid >> brooklyn or knicks. >> mike is a sixers fan just as everyone in the studio all three of you have been supporting us through the playoffs do not worry about the knicks. we need everyone to support. >> i knew i would get nowhere with that. i think it's great i've never been more interested in it. i guess it's draft kings that is what it is thanks, guys that is what it is. >> wager five bucks on it. >> three-way parlays on it >> i do, five bucks. i've had the same $100 that i put in this year and it's -- >> seriously >> yes >> it's at 210 right now.

>> that's not bad. >> the world's biggest meat supplier has become the latest victim of the cyber security attack senator angus king joins us to talk about how washington plans to combat cyber attacks. stay with us dow is up a lot. [ suspenseful music ] ♪♪ hey, you wanna get out of here? ah ha. we've got you. during expedia travel week, save 20% or more on thousands of hotels. just book between june 8th and 12th to plan your escape with expedia. expedia. it matters who you travel with. what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries,

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breaking news. shares of amc rallying in the pre-market trade taking advantage selling new shares it's raising nearly $230 million in a new stock share to investment firm mother capital adam arrington taking to twitter directly to shareholders saying in our view this is not mindless dilution, but rather this is very smart raising of cash so that we can grow this company. to many of you on twitter, to grow your company. watch out naysayers, amc is going to play on offense again here we come there's a couple ways to read this one is he does use the word dilution there is an element of dilution here by default. he says i think it's about 1.7%

of their total outstanding shares he's saying it's not a huge number they are raising more money at a higher price than they had a couple of weeks ago which is a little over $400 million close to $450 million closer to ten bucks a share. it's pretty interesting to see what's happening here. the question is does this make the shares -- the shares are higher. >> up 11.6%. >> the question is should they be going higher given the dilution i don't know i would argue, it's a smart thing to do. if you're the ceo of a company that wants to, a, avoid business, b given the strange valuations, i don't know -- >> gamestop, initially that was seen as -- if you are going to do what the chewy guy wants to do, it's going to take money. >> that's what you've got to do. >> i was thinking of it in a different context. i don't want to get you started. this is what corporations do sometimes you issue stock when you think it's right

sometimes if you don't think it's the right time, you buy it back the whole idea that they have they keep -- elizabeth warren. >> that it's manipulation. >> narrative companies do things with their balance sheet to decide on what the proper is. that irritates me. we're at a point where -- >> i'd agree with you. this is the smart thing to do. doubling down and making sure you're taking care of business at this point, yeah, it is. >> by the way, if i were him, i might have doubled it. >> right >> take as much as you could, i would think. >> i don't know if movies come back maybe it does. >> maybe. >> fun to go to a movie. >> but the big -- it's a big movie. 10-fold movie you do that for. >> obviously we go with the

kids i'm not going to take the kids before they're vaccinated. >> that's a couple months. >> once you get there, you will want to go back into movies? >> yeah. yeah yeah >> unless you watch "cruella" at home for 30 bucks on a friday night. >> still to come on "squawk box," the world's biggest meat supplier is the victim of a cyber security attack. we'll talk to senator angus king and later, don't miss our excludsive interview with bob johnson on the changes businesses have seen one year after george floyd's death june is pride month. we'll spotlight cnbc contributors, our own anchors and producers. here's cnbc's ray parise. >> the day i came out my parents cut me off like that and we didn't speak for over ten years. for a long time i concealed the fact that i was gay because i thought it would somehow disadvantage me, but the truth

is having to conceal who you are is a giant disadvantage. your biggest achievements in life and at work will come when you're true to yourself. today i'm proud to see so many companies including this one making diversity and inclusion a big priority state-of-the-art but dependable. in other words, you want a hybrid. so do telcos. that's why they're going hybrid with ibm. a hybrid cloud approach with watson ai helps them roll out new innovations anywhere without losing speed. from telco to transportation, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. good work little buddy. ♪ ♪ ♪ [typing sounds] [music fades in] [voice of female] my husband ben and i opened ben's chili bowl the very same year that we were married. that's 1958. [voice of male] the chili bowl really has never closed in our history. when the pandemic hit, we had to pivot. and it's been really helpful

to keep people updated on google. we wouldn't be here without our wonderful customers. we're really thankful for all of them. [female voices soulfully singing “come on in”] wealth is breaking ground on your biggest project yet. worth is giving the people who build it a solid foundation. wealth is shutting down the office for mike's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime. wealth is watching your business grow. worth is watching your employees grow with it. principal. for all it's worth.

welcome back to "squawk box" this morning right here on cnbc. i'm andrew ross sorkin along with joe kernen and becky quick. yes, together again live at the nasdaq market site in times square get the big shot stop looking at -- there you go. >> see >> see, proof. proof of life. >> really -- >> newspaper with the date on it >> here's the date >> that's the hostage stamp. >> proof of life we're here. >> show you futures. they are surging this morning. let's show you where we are. the dow up 243 points. nasdaq up 59 points. 58 points. the s&p 500 up about 24 points a couple other dow winners to tell you about amgen, boeing, chevron all trading higher dow losers we should show you as

well right now because you're looking at caterpillar off, united wealth. they're the laggards there's a lot on that screen nike has moved positive as well. the world's biggest meat supplier was the victim of a weekend cyber attack jbs shut down computer networks in australia operations were shut down in the united states, canada and australia. beef industry is already dealing with worker shortages stemming from the pandemic. jbs says it's working to restore the systems from backup servers which were not affected by the attack our next guest with a timely editorial out last week saying in the wall street journal that it's time for washington and the private sector to work together to prevent future hack joining us is independent senator angus king he serves on the armed services and intelligence committees. sen senator, this latest attack coming on a meat company after the colonial pipeline brings it

to real focus, the problem with cyber attacks. how concerned are you at this point? >> first, let me say it's great to see the band back together in real live time. >> thank you. >> that's a major step forward i can't overstate how concerned i am we keep having wakeup calls and we keep not waking up and, you know, the meat packer announced the food supply. a month ago it was fuels it could be energy next. it could be transportation it could be the financial sector and we've really got to scale up our responses. and one of the big things that i talked about in the journal last week was a better partnership between the government and the private sector, and i realize to some of your viewers that's sort of an oxymoron, but we've really got to build up the relationships because when you have one of these attacks, the

government can help. i mean, it has terrific resources and analysis for attributing the hack, where did it come from, what does it involve? and the private sector has to trust the government and i think we're working on what we call sici, systemically important critical infrastructure and environment there will be some liability protection, some protection for proprietary information but at the same time some kind of mandatory reporting so that we have situational awareness so we've really got to step that up that's the first step. and then i'll talk about some others as well. >> senator, just the idea of mandatory reporting, i feel that that's something we've been hearing about for years. people coming off from congress and saying we need this. what's the holdup? why is it taking years to get to the point where it's required you report these attacks >> the business community rose up en masse when susan collins

and joe lieberman proposed this and killed the bill. i think business understands that this has got to be part of what will protect them it's benefits and burdens. there have to be benefits and some burdens so i think now that we have to move tom fanning was one of the members of the national commission the ceo of the southern committee. this is something that has to happen the other thing i have to say, i don't know, nobody knows yet exactly what caused the colonial pipeline, but a lot of the prevention has to start at the desktop. the federal government can do everything it can do, it can do everything right or knows it doesn't but it could, but if an employee in a critical industry clicks on a phishing email,

we're in trouble so a lot of it is individual responsibility, cyber hygiene. if i were a ceo today, i would ask my -- i would ask my marketing people or my contracting people, find some hackers out there, hire them to show me where my vulnerabilities are because everybody thinks they're invulnerable, they're not. i think having penetration testing by an outside group, it's a friendly group, could be a big help in exposing where the people can get into your systems. >> senator, while you're here let's talk a little bit about the infrastructure bill. it looks like republicans are getting closer to where the democrats are. there's still a big gap not just in terms of the dollars but in how you pay for some of these things you're an independent but you caucus with democrats. what's your concern with the $1.7 trillion bill that's on the table in terms of pay fors that's something you're concerned about. too much deficit spending has

passed. >> number one, i appreciate the administration putting a plan forward that does have a pay for. the pay fors are, as you know, unacceptable to the republicans. theis the real issue you put your finger on the division what they try to do is establish a top line what's the number going to be? and then the second question is what's in and what's out what's infrastructure and the republicans are leaning on the hard side. i'm glad to tell you the truth that both sides have broadband in i think that's one of the highest priorities particularly for rural areas. then talk about how to pay for t. there's going to be compromise the president has indicated, i heard him. i was in the oval office for the group of democrats and republicans. he said, i'm ready to compromise i think he is. so they've got to come up with a pay for plan that causes everybody a little bit of hurt

but also will keep the deficit down they're talking about having a week to do that and i think it will -- we'll see whether both sides are, in fact, interested in really getting to a solution or whether the president thinks he can go it alone with the democrats. he's going to have to sell his plan -- there's no margin of error in the senate. you have to have every single vote he has to sell it to the entire democratic caucus as well. >> does he have your vote if there is no bipartisan agreement and the plan stays as is. >> i've got to see what the deal is one of my predecessors edmund musky says don't sell your vote until they get, in my case, to the ks in the alphabet i want to see what the deal is. >> what is it that you want aside from broadband >> i'm he sorry? >> what is it that you want aside from broadband what else would it take to convince you that the administration's plan is the right one? >> well, i think the hard

infrastructure everyone can agree with roads, bridges, rail, transit, those kinds of things. the sque is whether some of the more sort of social service pieces ought to be in there or should they be in a different deal but the other piece is, again, how to pay for it. there are a couple of things i've learned around here one, you don't negotiate with yourself with all due respect, you don't negotiate on tv. >> smart plan. >> nice try though. >> smart plan, but it does sound like it's going to take some convincing to get you to come around to it want to thank you for your time today. >> thank you good to be with you. coming up, "new york times" columnist tom friedman on the unmasking of america, taxes, the president's budget and much more and a reminder you can always watch us live on the go on the cnbc app we'll be right back.

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and bob johnson with rlj companies. and harley fink elstein. much more coming up. in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. i'm dad's greatest sandcastle - and greatest memory! but even i'm not as memorable as eating

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every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. >> tom friedman, author of from

beirut to jerusalem. in just a moment, we'll see if there is a whisper >> andrew, great to be with you. great to see the gang all back together in the studio. >> when we look at government funded innovation and incentivizing risk taking and preventing risk taking, it's building the national railroad,

i see biden very much in that trend. >> how do you think about that in this context? >> i want it paid for. i don't believe that you can endlessly add zeroes to things but at the same time when we do add zeroes in ways that are really investing in the future that can actually enhance the productivity, i'm ready to give a wide latitude on this. i do like the fact that republicans have now come up with a counter offer and, you know, i really hope we can see a compromise there because this is just really, really important. and the pandemic underscored why we need, for instance, broadband. we need to strengthen our platform --

>> right. >> -- and leap into the 21st century. >> tom, i don't think anybody disagrees broadband is defined around bridges and broadband where it gets trickier is when it gets into issues described as social issues. >> i'd call it investing in human capital. i'm not an expert. right now i want to get the hard infrastructure in place. i respect the idea that providing the kind of social foundation for people and families, working families, is also about creating that platform for a leap forward. i'm not an expert on that. >> separately i want to talk to you about the middle east because you are a demonstrable expert on that as well and you wrote a couple of pieces recently that if our viewers have not read them should. one is called how joe biden can win a nobel peace prize.

the other how the middle east conflict is blowing up the party and every synagogue in america >> i'd like to think a lot of people took note and the main argument there is if there is no two-state solution, then there's only a one state solution. are you with that or good with that or not what we saw in the last go around is joe biden may be the last pro-israel democratic president when you look at where the base of the democratic party

is going my focus has been, andrew, preserve the prospect of a two-state solution it's vital for the stability of the world and for the coherence of the democratic party. >> you talk about it splintering and i'mrelating it back to so many other things the democratic party is going to do >> it certainly does i was a widen the lens i think there are -- i hope the next president will run to the center because i think there are two terrible ideas out there right now, two terrible ideas that are really rattling our country. defund the police and decertify the election and you have an extreme left and not only an extreme right but to the center right pushing those two terrible ideas and defund the police, we need better policing and more

policing the defund the police mantra has caused great harm to my hometown in minneapolis and other cities. at the same time, dessert at this fieg the election is a prescription for civil war republicans need to ask themselves one simple question, what if we win if we create the context of dessert fieg the next election what do you think is going to happen no problem you want to see people in streets, you push that decertify the election leaders are ready to run away from this to the center, better policing and honest integrity of the elections. >> can we travel around the world and go to china with you as well. >> yes. >> there is a big question mark now, if there wasn't before, about whether covid may very well be manmade. and the question is if you are the u.s. government, if you are

other governments, what you should be doing right now. >> well, i like the fact that president biden has ordered up a full intelligence review my own position was, hey, i'm perfectly ready to believe that this escaped from a lab. i wrote that i didn't believe that it was designed as a bioweapon, but that's a whole different question but i think this is a really serious issue and let's widen the aperture did you see what happened between the european union and china? they sanctioned several senior chinese officials over involvement in the abuse of uighurs in western china china then retaliated by name against senior e.u. officials and now they've basically -- the e.u. is -- they've frozen and made collapsed the e.u./china trade agreement. i think china is on a bad path they have got to come clean here the way to do that was always not to truncate trump versus xi.

make it the world versus china on universal values. >> tom, how do you think about fauci in all of this because as we're learning more and more, it appears he may have known other things or other facts that might not have been as convenient during certain times during this period >> again, i don't want to speculate. i just don't know enough about that, andrew sorry. >> tom friedman, always great to see you. hopefully we'll see you around this table sooner or later. >> look forward. >> you bet thanks coming up, mohamed el erian joins us with his take on the markets. and then shopify's harley finklesteen. "squawk box" coming right back ♪

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how has it gone in the past 12 months? we're going to talk about that very issue with a special guest as the final hour of "squawk box" begins right now. good morning and welcome to skbauk box see that the nasdaq that's where the show comes from i'm joe kernen with becky quick and andrew ross sorkin we're back in times square it feels good. it's easier. we forgot what it was. >> body language, to be able to

talk to each other, signal each other things. >> right >> perfect >> i can -- if you start going down somewhere, i throw something or you look at me and it's like ixnay on the fauci say. >> auci fay. >> we can communicate much better no delay we weren't supposed to talk about that >> people are thanking us for making it seamless. >> for getting how hard it is until you get back here and realize how busy it is. >> good. and, i mean, i am delusional the markets are probably not up just because we're back. >> right >> it's not just because we're all here together but the markets are strong, solid. up 256 points. the s&p indicated up 24 as you can see. the nasdaq, you can look over

here, andrew, because if i'm trying to do it from there, i see what you're saying. >> here it's small. >> you have to have some pretty good eyes. >> over there. >> that's why if we look over that way, it's all right once in a while. i'm watching myself do that. doesn't look horrible. >> your hair >> shows my hair shows some good things a big final hour of the show el erian is here mohamed is here. he's going to be upstairs though still not ready to do that not ready to have guests we're going to sequester him he's double vaksed he can come here we could do it in an abundance of caution -- >> we're easing back into things. >> easing back into this >> all right mohamed, i think he did come in. good to see him. b.e.t. founder bob johnson on whether businesses have lived up

to their pledges since the death of george floyd and shopify president harely finglestein i hear great things about shopify from people close to me. they love it >> it's great. >> they love it. it's done amazing. customer service and everything else. >> so easy >> you have a business >> data in and -- >> i don't have a business >> i'm a customer. oh, they love it >> unbelievable. >> let's get you caught up on some of today's top business headlines. another cyber attack on a big business this time hackers have targeted the world's largest meat processor. company called jbs u.s. unit said the attack affected both north american and i.t. systems australian systems shut down while it's working to fix the

hack, some customers and supplier transactions might be delayed. not a great time for this to happen with meat prices already spiking whichwe've been readin articles about that. meanwhile, shares of financial services platform social finance known as sofi are expected to begin trading today on the nasdaq global select market. comes after they completed their spac with chamath palihapitiya sofi said it raised $2.4 billion in cash proceeds from the merger movie goers are returning to theaters in increasing numbers "a quiet place ii" still can't talk, right? >> right >> led the box office with more than 58 million in ticket sales. that's the highest total since

the pandemic began got some new additions kind of reminds me, becky, of the walking dead as people moved out of their own area in this post apocalyptic world there are other people dealing with the same things you meet up with them and suddenly it's not just the backdrop of the monsters -- >> did you see it? >> i didn't see it. >> i heard that they moved further afield >> yeah. >> i'm thinking, you know, 3, 4, 5, i don't know how many of these you could do, but hollywood has a tendency -- >> the first one was really good. >> first one was pretty scary. the bathtub scene. is that giving it away am i giving it away if it's two years ago? >> no. people have streaming. >> they might not have seen it. >> they might not have seen it.

>> speaking of movies, chairs of theater chain amc are rallying they are selling new shares. amc is raising $230 million in a new stock sale to investment firm mudrick capital here's what the ceo tweeted. in our view, this is not mindless dilution but rather this is a very smart raising of cash so that we can grow this country, to many of you on twitter, to grow your company. watch out naysayers, amc is going to play on offense again here we come amc grabbed headlines while the share price more than doubled. our next guest says there are other important market stlaemts have taken place joining us is allianz adviser mohamed el erian the president of queens college camb cambridge. great to see you great to have you on the nasdaq with us. the broader market things you're

talking about, this is what the fed is doing in relation to other central banks at this point, right >> good morning, becky thank you for having me. look, the market for now is in a wonderful sweet spot the economy continues to open up and what we heard from the hilton ceo in the 6:00 hour, the best saturday ever, that's consequential. secondly, pricing power is returning to corporate in a big way the other side of inflation. thirdly, policies remain extremely loose. the head of the fed, the vice chair, the people really influential seem willing to tolerate the high inflation and fiscal policy is going to continue to lose for the marketplace for now, this is a really good sweet spot you see it happening and encouraging more risk taking you say for now. >> what worries me is the inflation side we have to keep an open mind

what i'm seeing suggests it's not simply transitory. the last thing we need is the fed to slam on the brakes further down the road. we have no historical experience where the fed has been late and we haven't ended up in a recession. keep an eye on the fed hopefully the fed will respond in a timely basis. i don't think inflation is transitory i worry about the fed being late. >> you're worried we're running downhill what you would like to see is the equivalent of tapping on the brakes and something giving a signal to slow things down before we start going too fast. >> let's ease off the accelerator. we have fiscal accelerator all the way pedal to metal and private sector credit creation margin debt all the way there. so what i'd like to see at least on the monetary side is ease off the accelerator and enhance supervision of non-banks

that's what you need right now so we don't run out of control down this hill. >> mohamed, jay powell has talked publicly about how he has seen tent cities rise up he sees them on his commute to the fed every morning. what would you tell him? can the fed do that or is this somebody else's job? >> you're right to be worried. all of us should be worried. covid has been the great unequalizer and it is contributing to not just inequality of income and wealth and opportunity. the fed doesn't have the right tools. that's not a task for the fed to be able to do. running the economy hot simply to deal with this has massive risks elsewhere. right? so i would say to them, you're absolutely right, but let's engage in a whole of government conversation about this rather than run monetary policy too hot for too long. >> when you look at the meme stocks we were just talking

about, when you look at retail investors and how involved they've gotten, that doesn't seem to be related to the fed or do you think it is because there's so much money floating around right now >> it's related to so much money floating around. so you -- you know, if you're a retail investor, you've received injections from the federal government you can very easily borrow on low rates. i would have to stress this. amc is quite consequential why? it has a company understanding it has a certain segment of the investor base they can relate to weakened investors have found like they did with gamestop in particular an opportunity. keep in eye this phenomenon. they are starting to be price determinant in an important way. >> what do you mean? >> they find opportunity remember gamestop. shorted up to 130% of float.

they found it and they were able to implement a very smart short squeeze that only got frustrated by robinhood saying you can't buy this anymore amc, they can be influential in price formation. i'm looking at this saying this is not the old type of retail investors. there's quite a smart element to it and the ability to coordinate and talk to each other and reddit on twitter has changed and is changing the landscape. >> mohamed, you say inflation you don't think is transitory. lumber prices rose after six months of gains. >> first the labor market. i think we are looking at a shortage of workers. they are having real issues on the supply side. then third, it's not easy to get the shifting and all of the oil

in the global economy back to where it was so what you're going to get is these bottlenecks on the labor side, on the input side at a time where companies are more confident. we are raising prices to others and it's sticking. i think you're seeing both the cost-push element and the greater price element come in at the same time. that's not going away any time soon. >> part of the problem in getting supplies to the right places is the manufacturers themselves they've been living on this just in time inventory. how much of this is self-inflicted >> part of it was. we had a great focus on efficiency going into covid. it was just in time inventory management cost effective supply chains across the world and then covid hits and then you realize it's not just enough to be efficient, you have to be resilient when you shift to resilience,

you start wanting to rewire things you can't rewire things immediately so you get these bottlenecks. they're going to last for a while. look where shipping containers are. it is all over the global economy. it is not just about the u.s., it is all about the global economy. that is not transitory that doesn't disappear in three to four months, that takes years to sort out. >> everything you're talking about i understand i hear the concerns about it and i hear it reflected from other really intelligent market players who have been playing the game for a long time and watching this play out we also know that it can run for a while before you see any of these real problems kind of come up would you bet this could last six months, a year, two years? how will you know? >> we're in a dynamic that i last saw in 2007 where people realize that there's an inverted u and that we're somewhere near

the top but we're not there yet. they want unambiguous evidence, i stress unambiguous evidence that we're turning remember what leon cooperman told you, i'm a fully invested bear that's a fantastic way to capture it people realize there are issues but the liquidity wave is so enjoyable right now and so profitable right now that you've got to be a fully invested bear. that's what people are they're waiting. they know that at some point there's something out there but they're not going to position for it because you want to take on the fed which seems absolutely set they don't even want to talk, becky, about what happens if they go from 120 to 100 billion of asset purchases every month they don't want to talk about this the marketplace is confident that the fed is going to be ultra loose for a long time. that's why the inflation issue is so important. >> i remember what lee cooper man said you were right being a fully invested bear, but i also

remember chuck prince talking about how he was going to keep dancing while the music was playing. >> that's the reference to 2007, right? it is very similar i remember and i wrote that in an article last week as a ceo of a bank coming to see me and drawing that picture and i said, where are we he said, near the top. what's your risk position? he said max risk on. i said how can that be a, i don't know where the turning point is, everybody else is and i'm pretty confident i can handle it. they had to be bailed out. >> hopefully we'll see you back at the table very soon. >> thank you. >> thank you when we come back, a special interview with rlj companies bob johnson. he's going to join us. bob is going to be talking to us about the legacy of the tulsa, oklahoma race massacre which took place exactly 100 years ago. he's going to weigh in on pledges by the business community since the death of

george floyd to help fight racial injustice it's an interview you do not wanto tmiss stick around, "squawk" returns right after this

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>> the dow is up 260 points. the airlines, take a look at boeing it's up by 1.9%. hotel stocks which have been seeing a comeback. norwegian, carnival and royal caribbean. coming up, an executive with one of the best views into the retail recovery. shopify president harley finklestein president. promises and follow throughs

on those promises by the business community in the year since george floyd died. we're going to talk to b.e.t. founder bob johnson. stay tuned you're watching "squawk box" on cnbc to make progress, we must keep taking steps forward. we believe the future of energy is lower carbon. and to get there, the world needs to reduce global emissions. at chevron, we're taking action. tying our executives' pay

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the tulsa race massacre, there's a new push to create and support black businesses more than $1 billion has been invested and donated by u.s. financial companies in 2021 to provide capital to black businesses or address the racial wealth gaps. black businesses were disproportionately impacted by covid-19 at the height of the pandemic 41% closed compared to 17% of white-owned businesses operation hope received a $20 million investment from truist and launched an initiative with shopify to create 1 million black owned businesses the owner is the only employee

in 96% of black businesses and these investments can lead to job creation benefitting from broader economy. >> those employees are paying their mortgages, paying for car notes, paying for school fees, paying for gas at the gas station, going to restaurants. the ripple effect in the neighborhood is obvious, relevant and significant >> reporter: the recent wealth gap is $11 trillion. according to the survey from duke university it could be as high as 13.5 trillion. gdp increases up to 6% if that gap was closed by 2028 creating a per capita increase up as much as $4300 per person. to put that into perspective even if inflation got up to 3% in april that would have more spending power in 2028 than all the stimulus checks combined back over to you. >> frank, how important is it

when you are talking about bridging the digital gap for businesses and people in terms of closing the racial wealth gap too? >> well, a lot of people see it as a very important and crucial piece to the puzzle. just one piece but a very important part in fact today p. diddy along with salesforce are launching a new ecommerce place. they're calling it shop circulate. i spoke to john hope bryant about the digital divide he said 90% of black owned businesses do not have any ecommerce presence that's a crucial part in growing those businesses and a lot of companies like salesforce and shopify see the benefits as well. >> thank you it's great to see you. >> good to see you. our next guest joined us a year ago shortly after the death of george floyd. today he is with us to talk about the pledges that businesses made to further the goals of racial and economic

equality and how things have developed over this past year. we're joined by bob johnson, rlj companies, b.e.t. founder, cnbc contributor. always a pleasure. you think we need -- you even bring up ronald regan, trust but verify you think we need to make sure the pledges are followed through. you want to do this in a systematic way with people to check on this. >> yeah, joe absolutely i do think that because if the truth be known, after every social crisis in america, white owned businesses rush to say they're going to put dollars to try to address the problem ceos and companies, i hope, out of good intention, some of it

may be just we don't know what to do but announce a pledge but a pledge is meaningless unless it's fulfilled every time they make a pledge to investors on wall street, they're giving their quarterly report on how they per formed on that investment strategy or allocation of capital. i see no reason why we shouldn't do this on pledges since they make them public, they have to be prepared to back them up publicly with verification that they fulfilled the pledge. that's why i proposed the creation, i hope the business companies and ceos will support this, a pledge verification committee to have the companies come up and report their announcement that they put out

with a lot of public fanfare and the results. it doesn't have to be quarterly, it could be twice a year, whatever, but the community deserves to know that if you pledge to help us, the community deserves to know and be informed as to howe well you're doing trust. we trust you're committed but verify. >> pob, you should -- obviously you're willing to take this on and, you know, pledging is one thing and at the time there were some companies that didn't really seem to know exactly where the money would be best spent either so you know exactly how to do this in terms of capital formation for minority businesses and everything else would that be part of this you would put together things that -- where we can get the most bang out of every dollar? >> joe, you're absolutely on point. if you think about it, what companies should do before they

announce a pledge, why don't they get together a group of black ceos, i'm not talking black ceos of publicly traded companies, i'm talking about black ceos who are members of the black enterprise, be 100, people who understand what it is to operate black-controlled businesses and to compete in the marketplace as a black-owned business they would be getting guidance and advice and pulling together people who can come and say we'll report to you as to how well we're doing one of the things, joe, i'm most concerned about is when i hear these announcements and keep in mind during barack obama's presidency we were supposedly post racial. all of a sudden now flash forward to today, because of the murder of george floyd and other police shootings and the black lives movement, companies are scrambling they're scrambling on diversity

and inclusion and scrambling on investment but a lot of the money, to be honest, joe, the people who work in these companies have no experience, no expertise, no background in investing in black-owned businesses so why not create black owned business owners who have done it why not bring those individuals in and have them be part of the capital allocation process i'm afraid what companies do, they make announcements, hand it over to corporate affairs people or they hand it over to someone in h.r. but they don't turn it over to an experienced investor and starting as you would know, joe, starting a small business, black or white, requires intense engagement in the growth of that business so when companies want to launch

black ventures or small businesses, that's the toughest thing in the world to do why not put some of this company into black businesses that can get to scale there are a large number of businesses that are more than mom and pops what they need is growth capital, strategic investment capital and strategic relationships with the investor. >> hey, bob -- >> that to me is a better approach on this issue of verification, i would be more than willing to pull together some senior black executives and people from various disciplines and say to the companies, you made it public so why would you -- what would be the concern about making public your performance so pledge, verify. >> i want to ask you if in the end you were supportive of corporation's role on some of these voting rights issues both in georgia and then you probably

just saw in texas, texas democrats blocked the proposed law that would block voting rights they often came out on behalf of black americans. >> andrew, i believe a ceo concerned about his company and concerned about his community and concerned about the country as a whole has the right to voice his or her opinion on political social issues. my only concern is make sure you're doing it with the right information and for the right reason you're not just doing it to placate a certain constituency group that is coming after you i've seen so much of what i call cancel culture pressure come against companies, and they cave

for no reason at all i'll never forget, i spoke to the gentleman at goyk, the hispanic owner of a food business he was basically attacked because he happened to go to the white house when trump was the president on hispanic appreciation day of some sort. now can you imagine an immigrant, come to this country, work hard, build a successful business to serve his population and others, and all of a sudden he's attacked because he was in the wrong place with the wrong gia cording to certain people? to me, i think these companies when they look at social issues go deeper into it. figure out how best to address it and don't get on a band wagon. >> this is the hard part i knew if i asked you this it would be a complicated issue aren't these social issues intertwined with the issue you're trying to get at in terms

of inequality in particular for this community >> i don't think they're intertwined. i think they -- the results of lack of access to capital, a huge wealth gap between black and white families is a contributor to social problems there's no doubt about it. >> if you can't vote, you can't deal with any of these things. >> no, you can you can deal with them on the base of more knowledge, more information. bringing in black advisers and people who have been there and done that to help you out rather than just getting in a room and saying, gee, things are bad. let's issue a press release and say we're going to get millions of dollars into the black community. who are you giving it to i can tell you right now for a fact, i'm not bragging on myself, but i think i've got a pretty darn good track record on starting businesses and creating talented people. three of the 13 or so black ceos

of publicly traded companies work for me and i served on probably 10, 11 company boards over time. i have not heard one call from any ceo committed to put money behind black businesses. call to say, bob, what do you think about this how do we go about it? i would be willing to bet you dollars to donuts if you called guys at black enterprise and ask them, how many of you got a call from a ceo saying, hey, you've got a great business what can we do with you strategically to help you grow your business, hire more people, put more capital into your community and the like when i see this number, i saw on another network, i won't mention the name, some 50 billion of pledges since the george floyd murder and the black lives matter movement and so on. of that 50 billion, i'm not vouching, i'm telling you what i

saw, is that 250 million has been deployed. 50 billion pledges, 250 million deployed imagine if you were a company and you announced to wall street that i'm going to invest $50 billion in an enterprise to run a business, that was your commitment, and then you go to your quarterly report and say, how much have you spent? and you say, i've spent only 250 million. they would start saying, what's the problem? and here's the answer to that. don't make a pledge unless you're prepared to verify. >> bob, i agree with you 100% on verifying the pledges. yeah agree with you 100% on verifying the pledges. i want to go back to what you said on goya he didn't get in trouble because he appeared with donald trump. he got in trouble because of what he said he said donald trump was still the real legitimate actual

president of the united states he said in georgia the ballots that biden won were not legitimate he claimed the mail-in ballots were fraudulent. it was more than appearing with donald trump. >> becky, we're a little bit mistaken i'm talking about when he was -- this was when donald trump was still in the white house this had nothing to do with the georgia issue. this was when trump was president of the united states and the goya guy went there as part of hispanic commemoration day or something like that that had nothing to do with the georgia vote. >> he said some positive things about trump when he was there, bob. >> yeah. and so the -- what i'm telling becky, you shoot the guy for having a free thought. i mean, you say you're a country of immigrants. we welcome industry yus people to come to the country, and then all of a sudden he makes the wrong choice and says something about a republican president

that was elected by a huge number of people, and all of a sudden thiswonderful industrious immigrant who comes to the country, lives the american dream, we have to cancel him because he said something you didn't like. >> bob, i can't let -- i'd go until 9:00 with you, you know that, but we can't you sit on the board of disc discovery? i'm going to switch gears a little i know you may not want to talk directly to that but as you said, you started a few businesses and you started a few media businessesthat i'm familiar with. what do you think of the landscape right now? and then you've got amazon and everything else. i know it's off topic, but we'd be remiss if we didn't ask you for your expertise on these things >> two things i'll say let me deal with we opened the show with the tulsa issue. this is an interesting story when i was a kid for some reason there used to be a carnival,

piece in the papers called ripley's believe it or not the one thing i saw, it said believe it or not, what was the first -- the only city in america ever bombed from the air by an air force? and that was tulsa to quell the riot that's the first time u.s. air power has ever been used against -- or any air power in the country was tulsa. but going to the issue of streaming. first of all, streaming is going to be a content war which will require content investment and capital. so unless you have the capital to get the content and get the sources of content creation, you're not going to win that battle so it's going to be a consolidation. there are going to be in my opinion four -- three, maybe four winners after that everybody else is going to have to rethink their

strategy do i start selling off my library or do i try to come up with a way of being a niche service? and i target a niche audience and survive that way, not willing to spend billions of dollars in content keep in mind, guys, a consumer is only going to buy just a few of these streaming services. >> bob, you sold b.e.t. to viacom if you're sherry redstone, what do you do now? >> if i'm sherry redstone, if i can't buy what adds help to my streaming plus platform, then you've got one of two choices. you've got to hope that one of the big tech companies will say, as amazon is doing, saying, hey, we've got to bring in content and we've got to buy something

that already has library and the creation of content. that's your only real option you can go it alone, but it's going to eat up a ton of capital and it's going to be hard for those who have the first mover advantage, brand equity and proving that they know how to become global. that's the real challenge. >> all right, bob. i'm getting -- we like to talk amc, we like to talk so many things but we've got harely waiting, too great to have you on, bob. >> bring me back so i can see you face to face. >> i've got a spot right here. i was just thinking that we will see you soon >> also, raise my fees this inflation is hurting me. >> working working on it we're working on it. we've got the boss here. we'll talk to him. >> can do that right now.

when we come back after the break, which tax rate floated by president biden is uniting ceos, investors and entrepreneurs in opposition we're going to tell you when we come right back. "squawk" returns right after this ♪ ♪ ♪ ♪ ♪ ♪

shares of abbott labs are falling and how. down over 4% after the medical device and technology company cut its full year forecast

now expects a full year profit of 430 to 450 prior to a forecast of $5 the cut comes amid decline and demand for abbott's covid-19 tests as more people become vaccinated meantime, the biden administration warning investors a higher percentage on a proposed new capital gains tax may very well be retroactive, guys ready for that robert frank joins us with the latest good morning. >> reporter: good morning, andrew president biden officially calling for the largest capital gains tax increase in history to be retroactive his budget release friday calls for it to take effect april 28th, 2021 that was more than a month ago if you sold property after april 28th of this year you could owe back taxes biden proposing to nearly double the capital gains rate to 43.4%

for income over $1 million treasury getting the first revenue projections and the elimination of the step up in bases saying the two combined would generate about 320 billion in revenue over 10 years they're only projecting about 1.2 billion this year from that increase some ceos and investors and tax groups already proopposing the group. david solomon said it would create extra anxiety and extra uncertainty. there have been retroactive tax increases before, but never have we had a retroactive capital gains tax increase treasury saying this was needed to prevent investors from selling before the tax hike takes effect all of the planning people were hoping to do or planning to do is null and void because if it

goes through as proposed april 28th. >> if you're a betting man, robert, what do you think? retroactive or not >> reporter: this is a huge question does it pass does it get through congress is the rate too high is the retroactivity clause too much for the moderate democrats? maybe it's a 5% risk maybe it's a 50% risk. now that it's officially on the table, it is a risk for investors. >> what do you think the chaps of an april date versus an end of this year date? >> reporter: yeah, look, there have been moderate democrats that have already said we don't think it should be retroactive, we think it should start january 21st, 2022 so april 28th, the reason they did that date is that's the date biden announced the proposal, therefore he said we are giving you notice as of the date we announced it >> could have said that he had given you notice during the campaign, i guess. >> yes. >> what you said in the past as

well great to see you looking forward to seeing you in person very soon meantime, since we're all together here at the market site as the re-opening of america is taking place, we're probably late on the re-opening ourselves, we're going to talk about retail re-opening with shoppers coming back to stores investors wondering if ee con mers is. harley finklestein is the president of shopify it supports over 1 million merchants worldwide. we've talked over the idea of pull forward the question is is that pull forward sustainable? what are you starting to see even within the last couple of weeks at this point. >> great to be back on the show. good to see all of you back together there's supply side and demand side of retail i want to start on the supply side of retail i mean the merchants, the

entrepreneurs. one thing we have not talked about in the past year to go is 2020 put the spotlight on a type of entrepreneur that has been around for a long time and never had the way before the name of it is the forced entrepreneur we talk about needing passion to start a business there is another catalyst for becoming a entrepreneur which is survival i started a business to put myself through school and support my mom and sisters that's toby's story who moved to canada as a new immigrant. although forced entrepreneur ship may sound negative, it's not. studies have shown they're more likely to build a successful business because they have to. this pandemic as we talked about, all of these challenges came out of nowhere. as a result, thousands of new entrepreneurs emerged. new stores were created and in the united states alone 4.4

billion businesses were created. that's a 24% increase from last year this year oatly and figs went public and they were started one on the demand side there is 5.4% increase in spending on goods accounting for most of the growth this is a promising side and confidence numbers show a very optimistic outlook holding steady to highest in the last 14 months when you look at place likes australia or new zealand that have now emerged on the other side of the pandemic where things are going back to normal you do not see retail going back to the way it was to the status quo you. still see elevated levels of retail and particularly digital retail so there is a lot to be optimistic about here. >> in terms of growth. talking about in the united states can you give us any kind of visibility into what the numbers have looked like, even the last three weeks?

>> no slowed unwhatsoever from our perspective. a lot of the businesses -- my wife is a foodie and it was her anniversary. i want to get her something special i want to get a book from french laundry. what i notice is you take this iconic american restaurant that had to close on the pandemic and ow they now have a full store online i don't see us going back to old version of retail. i think the new paradigm shift will remain and the center of gravity is now online first, not offline first. >> the district of columbia brought a lawsuit last week against amazon calling it a monopoly do you believe amazon is a monopoly. >> i think for the future of retail to be interesting and exciting it needs to be in the hands of many not the few.

every store on shopify is independent. consumers want to buy direct from independent stores, not necessarily go to a single place that is centralized. >> are you amazon's defense at this point look at your success over the last year. if you are amazon, do you say look at those guys we're not a monopoly there is competition here. >> i think you could have two versions of retail one place to go -- you are not going tok marketplace. i you are going direct to the independent merchants and shopify powers that. >> if the department of justice calls you, you are going testify against amazon. >> i can't speak to that i don't know the details of that and i don't know what i would say. >> fair enough

great to see you >> when we come back gonna get you ready for the opening bell on wall street. stay tuned you are watching stay tuned you are watching squawk right here on cnbc. the gold standard, so to speak ;) 6 pros ♪ ♪ ♪

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and live a life rich in meaning, and gratitude. to learn more, text thrive to 444555, or visit thrivent.com. the. welcome back to "squawk box" everybody. we haven't seen a lot of momentum in market this is spring but that is possible a good thing for investors mike santoli joins us to explain why. why mike >> the market the rally has flattened out a little bit in the last six weeks take a look how it appears on the one year dhart in the s&p 500. from mid april not lot of net progress came up to the 4200 level. but it has given the market a chance to regroup. some of the overheated areas have cooled off. sentiment is moderate. sew ad little bit of confusion also the s&p is holding on to a

1% year to day grain not too bad. the average stock, equal weighted s&p 500 is well outperforming the maine market cap index. a net positive even if it doesn't mean it is off to the races. and the volatility index has maintained this down trend you have seen the market settle a little bit it was below 17 friday after a three day weekend you are going to get a bit of an upside bias to rebuild some of that premium but that is really not changing the overall story which is more calmed more settled by the way, boring is bullish. bull markets tend to go up in smile bites steadily as opposed to big swings. as long as this remains in tact and scliblgal leadership is okay it is tough to argue with how the market's regrouped in the last several weeks. >> that's the month of may but if you look today it does feel like we're off to the races with the dow up better than 260

points in the pre market right now. does that confuse your theory or is there going to be lot of fits and starts. >> i think the theory that we've regrouped and are on a stable footing is not negated by the opening pop. but the s&p up 20 right now. it is going to be in the 4220s we were 4238 three weeks eke in the same zone the high end of a range. june typically is actually a net negative month in the long-term but in years when the market is already up 10% strength begets strength i don't think anything is necessarily ordained here but it does seem as if market is in a quiet but relatively firm state going into june. >> it does not feel like we did the selling day and go away. we did the sell but what about the go away? can you expect summer dull drums in july and august

>> actually more like july things get dicey >> mike, always good to see you. hopefully see you back here in person soon too. folks it's been well over a year since we were all here at the nasdaq together. in fact this is my first starbuck's in 14 months. i even brought my own coffee this morning and then broke down and had this one anyway. >> it was a good restart >> thought you were going say good run >> i knew that was where this was going. >> no, it's good to be back. feels good everything went pretty well. no -- no delays when people are talking and. >> we can see each other. >> see each other. and get in on interviews i'm wondering, do summer

doldrums, when people haven't taken a vacation in a year and a half, do they take more vacations so the summer doldrums are even worse >> or is that that people are so excited and they have been making money for so long you don't walk away from the screen when you are still making money. like momentum and strong tapes keep people around longer. >> and then rates. are you starting to hear more people say we need to think about thinking about thinking about tapering. >> but it's getting picked up other places >> prices are going up everywhere everywhere. >> one final check of the markets which are solid. good start to june at least for the major averages. you can see the dow up 261 the nasdaq up 56 the s&p up 22. if there was ever a day that i was going to hit "squawk on the street" at exactly 9:00. today is the day so i'm starting to wiped things

down the 10 year is above 1.6 again and the crypto world seeing some stoblt but at much lower levels. >> saturday was a bit of a wild ride. >> it was. all over make sure you join us tomorrow all be back. "squawk on the street" is next good tuesday morning "squawk on the street" on i'm carl quintanilla david faber and mike sanity li jim cramer is enjoying some time off. more than half of all americans have at least one dose of a vaccine. >> plus meme stock, they are