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

surging. amc selling shares and ceo saying it is playing offense again. gamestop also moving higher. >> and bitcoin prices tumbling 36% in may the worst month since 2011 and moving lower again this morning. >> mike it was interesting listening to you talk about the isn't of the market but david certainly you look at the anecdotal reporting over the weekend and it does appear americans are out and shopping and spending must be the kind of reopening we've long hoped for. >> yeah. looks like it is here, thankfully and not a moment too soon. yeah the reopening. we can continue to look at inflation as well. make lot of folks this morning on oil, for example. and whether or not that move is transitory but certainly goes to the idea lot of people moving around and using a lot of gasoline as well but also to larger issues having

to do with how much capital spending is going on in that industry and how much will be spent additionally to get more out. >> year of year increase in gasoline price, last time it was this large was 2010. essentially always coming off a depressed state when the economy is kind of crippled. at thispoint i don't think it is getting in the way the big question, whether the market even into march was banking on exactly this phenomena we're see right now. what don't because oh we have a postpandemic record in the tsa traffic. we have a postpandemic record in movie box off office that's what we've been positioning for it would seem for a while right now. i will point out the market bottomed in march of 2020 a lot before those numbers started getting much better. in other words market kind of tries to lead that i think market in general is in good shape

rested about six weeks june not that great seasonally usually and everybody is on alert to do we have any payback for a 90% 13-month rally or not? the historical stuff would say maybe but not yet. >> it does sort of feed the notion of whether or not the market conversation gets a little tougher as we get into the number whether that is because infrastructure becomes more partisan discussion or the jobs numbers strong enough this week to get powell talking about talking about tapering or whether the inflation starts to feed into corporate margins. and of course earnings season for q 2 is only about five or six weeks away. >> exactly i do think there is something about you know what can we expect in terms of the trajectory of earnings from here spoiled by 50% year over a year increase in the first quarter. the numbers have gone up

massively for this year. and i think the general sense is they may continue to go higher and the market is less expensive than it appears. cost increases and things like that all that stuff is now in the mix. i do think you no longer -- it no longer feels like being excited about the real economy san edge right now because seems like we're all using that as the premise for what's been going on for months here >> well we'll certainly cover every incremental chapter of the reopening. but david, you know, theatrical distribution is going to be a story as we look at quiet place part 2 >> yeah. >> certainly directionally encouraging numbers at the box office although i will point out. if you look at alternative data trackers, movie attendance has not been setting the table the

way open table seated diners have been. >> interesting you mention that. given amc's move, carl and not unrelated i know as well we'll see how many people come back to movie theaters over time but let's not forget that prior to the pandemic there were many who believe this was a model that was challenged to begin with given what we all know are the trends that have been in place for years now. more and more availability amongst the streaming players for high quality content and yes there is a desire to see things and share things with people when you can. but amc shares -- they are up on this mudrick capital deal buying 8 1/2 million shares at a price of $27.12 a share bringing another 230 million bucks into amc. but don't be mistaken. this is a deal and i called jason mud rick, the man who runs it. he has not called me back. they have been a lend tore this company in the past.

they have converted. they have gotten certain fees in stock. they have sold that stock in amc by the way levels down to two or three bucks a share. but in this case mike it would appear likely that they own most likely a lot of bonds and when you are talking about a company like this which still has negative cash flow and very well may have negative cash flow as well there is a question in terms of credit worthiness so when you own a lot of bonds and increase the equity cushion significantly and wherewithal to survive whatever may be coming the bond price goes up and you benefit on that side. thatappears to be what's going on here. i can't imagine these guys are buying straight stock at this level. >> i agree so bonds last week of amc are trading below 80 cents on the dollar if the equity deal jacks the price of those. >> you get an up grade from the rating agencies which is also possible too. >> all kind of ways you might have been able to trade around this options volume at amc last week

was so intense and wild. that i'm just -- you can just spit ball and say i could sell some crazy out of money calls, make a huge percentage of what i'm making to buy new stop lot of opportunities created by the mania for this stock, which i think makes sense to talk about in yes it is a movie theater play, reopening play but also gotten caught in the jet stream of wild meme stocks. >> what's interesting. many would argue and we're going to --. that gamestop however absurd some may believe in terms of it current evaluation you can at least imagine them making a significant change in the business model somewhat harder to imagine that with amc and they are going to just go about showing movies which continues to be a b challenged business in some ways. given the chosen window. the fact that your availability of a key title at home is almost

as immediate as these days going to see it in the movie theater which is another challenge for the industry and that is what they deal in. their major shareholders are all out. and prices that are less than half after where we are right now. >> without a doubt so there is not really a transformation story attached to this even in the hypothetical let's talk more details about amc. joined by chad bynum of mckwar how do you put in today's equity raise in context you have a company that's gone about a hundred million shares outstanding a year or so to 500 million. and lot of capital behind the debt that is still a challenge >> yeah of avms stared death in

the face at several companies and i think he's really embracing what's going at on in the retail market. -- from a fundamental standpoint we look at what amc did in 2019. we do think they can get back the those ebitda or free cash flow levels. the equity raise that they have done in the past couple weeks, that will help them potentially bring down the deferred rent and reduced interest expense we think they can get back to somewhere between 50 cents and a dollar free cash flow. so then we valued the stock off that. >> ten or fifteen times free cash flow? so $10-15 a share? >> we're constantly reevaluating this weekend was a big due diligence weekend to make sure demand is still there but that is generally how we think about movie theater stocks how we have in the past.

i've covered this sector in the company for ten years and that's historically has the sector has traded and the conferences, cine world, cine mark. i max and others all still in that tight band. amc the typically the one that has broken out so it tough to tell whether there will be a rerate upwards or downwards >> when do you see it getting back >> 20 22 we're expecting 4% admission level decline. and trailing covid the nine month rechbls were almost flat heading into the pandemic we were actually seeing really good visitation to theaters we expect this to be the case in 2022 there is a slew of movies

obviously that we all know about that are just kind of waiting to be put in these theaters you know, the film rents and some of the other sbrekzs, obviously inflation has hurt the expense for companies. that will probably delay maybe a couple quarter but in 2022, 2032 we think they can return to peak free cash flow >> can a better theater experience be bought >> so the proceeds three items that adam could

address here one, grow the business there are some abrupt or near bankrupt theater companies that just didn't have this availability of capital. so it would potentially act on that secondarily they have 450 million of defer leases with some of the big landlords in the theater industry. those are the three items he's talks about with this equity raise or if the share is

approved in july. >> on that equity raise. i don't know if you were listening. i vice president spoken to mr. mudrick directly but my expectation is they are benefitting on the other side of the balance sheet or different part of the capital structure. any reason you can imagine for just buying straight equity at this level >> certainly i think, you know, being on both sides of the capital structure, like a fund like mud rick gives them several options. so having someone come in being helped on the debt side and benefit on the equity side it feels like it was a very unique situation to say the least

>> you have been skeptical does anything change with the equity raise, with the plants potentially to roll up other distressed theaters or anything with the box office this weekend? >> first thanks for having me on, mike there is no change to me the stock just does not reflect fundamental values i realize that can occur for a while. eventually i think it comes back to fundamentals. i think the company's as smart as they could be in terms of issuing stock at current prices. but in our view, even if they long-term stocks trade about 7 and a half times forward on average. even if they issued hundred million shares at this price and our dollar price chart would go up to $5. if i were adam aaron i would issue as much stock as i possibly could at current prices they don't have that many more shares authorized to sell. and i would use to it issue equity, make acquisitions, however i could use it

>> and how do you filter into it what the new normal is going look like. if we bench mark against 2019 in terms of theater attendance or anything else, that was a year before you had most of your suppliers of movies also in, you know, more direct competition with, you know, theatrical releases so where do you think movie attendance eventually gets back too? >> that is a great question mike the fundamentals of this industry have been steadily declining for years. do you buy a theater company for right price and it is managed well it throws off good cash flow but attendance has been declining steadily since 2000. and if you look what's happening now there are four releases, too many screens, not as many screens or theaters closed during the pandemic as we expected and the windows are shorter. and netflix is now your largest producer of movies only a few of their films hit the theaters each year and they only have about a one

week window in the theaters. disney which has been the dominant studio in the box office, they are taking bob chafic wants flexibility big marvel and "star wars" pictures they need the theaters but even black widow that is going to be a trelease as well s in theaters but the end of the year -- >> see if all that comes to bear amc about a 12 billion dollar market cap three times from before covid. we'll see how this all plays out. chad, allen, thanks very much. >> when we come back we'll talk infrastructure the negotiations continue this week ma in cloudy vera today. and futures green as we kick off

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>> encouraging to see healthy conversations that have happened the last day asks weeks but the president keeps saying inaction is not an option and time is not

unlimited here i think we are getting pretty close to a fisher cut bake moment but on the fishing side of things negotiations have been healthy. >> that is the transportation secretary on cnn sunday talking about fishing or cutting bait when it comes to infrastructure negotiations eamon has been covers this as you pointed out earlier this morning. two sides in terms of new b money spent are far apart still. >> they really are and what you heard from secretary pete buttegieg is fish or cut bait moment that is a soft deadline but they have already blown through the memorial day deadline set some months ago so this is a process that is not coming together. and what you are hearing from the administration is an attempt to put some closure to it and get republicans to cut a deal by june 7th the republican senators have put together this plan that's $928 billion they say is their upper

limit. the president has proposed $1.7 trillion you look at that and say well they are not too far apart but the republican plan has a lot of old money in it that is, they are repurposing existing spending. what biden wants is new money spent at 1.7 trillion and there are still huge sticking points corporate tax rate green energy even the definition of infrastructure itself has been part of the dispute between the two sides. you see buttegieg saying we've got do this by june 7th and have a sense of whether there is a deal possible. you know, you get to the sense that maybe there is not a deal possible and if that is the case then the biden administration will have to figure out a way to do this through the budget reconciliation process and they might be able to do it with only democratic votes but that is a dicey situation and the president has said he'd prefer a bipartisan negotiation that is why the exercise this week we'll watch those meetings carefully to see if they can actually come together and do

something in very polarized washington, d.c., guys >> on friday it was goldman. friday knight said we expect congressional democrats to pivot away from bipartisan talks in the next couple of weeks and begin to move forward with reconciliation house passage by july. but september ayman you are talking september/october. >> you are and for the biden administration they understand they are running out of political time. they have clout now. they have momentum behind them with the end of the pandemic or the slowdown of the pandemic the success of some of the stimulus spending they have done so far so they feel like, you know, this is the chance to get this done before they get into an election year. it is an enormous, enormous project and an enormous bill and infrastructure projects across the country are hanging in the balance. but, you know, they would like to try this negotiating process first. and try to see if they can have a bipartisan deal. but if they can't you can see

the political impetus is going to be just do the bill don't worry about the niceties of having republican votes if you don't have'em, you don't have'em and move on. >> it was an interesting interview with tapper on sunday. eamon javers, thanks keeping us up to speed on infrastructure we'll take a break futures looking good to start this new day of a new month. we'll get to that in opening bell in about seven minutes. why keep it in different places? sofi is a one-stop shop for your finances designed to work better together. spend with sofi and get cash back rewards that automatically go toward your goals. like investing in stocks, etfs, and crypto. that's better together. or pay down your sofi debt sooner. that's better together. and that's how sofi is helping millions get their money right.

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and enhance nerve communication. and, alpha-lipoic acid, which relieves occasional nerve aches, weakness and discomfort. live your life with less nerve discomfort with nervive nerve relief. i'm evie's best camper badge. but even i'm not as memorable as eating turkey hill chocolate chip cookie dough creamy premium ice cream and chasing fireflies. don't worry about me. i'm fine. you can't beat turkey hill memories. welcome to the month of june the s&p hasn't been down in june since 2015 on average though it is the

fourth worst month of the year average returns of just less than a tenth of a percent. there is a look at the u.s. futures. y.ings encouraging on this first wee 'rback in a minute

the "opening bell" is

brought to you by: >> live shaft nasdaq this morning. that is anthony nota as sofi completing a merger. and long time member of the cnbc dis disrupter 50 a six time disrupter 50 company and seventh to make its market debut via spac. >> interesting the 7 of 50. raise about 2.4 billion is what they are going to have raised from the merger into the spac. of course. it is one of social capital spacs. ipo e, at least for now is what that has been traded under and as we know, mike, many spacs

have been trading under 10 dollars and/or at 10 bucks >> haven't looked at sofi. twenty issue. >> it had done quite well. >> there is the opening bell first one of the holiday shortened weekend. at the big board it's france total energies formally known as total. and sofi it is going to be hard to take your eye off of energy today as present did hit its highest level since march. >> and those are the stocks out of the gate leading the s&p 500 too. no big surprise right there. big argument within the energy sector as to whether they still qualify as being neglected, cheap, the whole thing and they are getting into the lip today.

the reflation trade had a break more a few weeks, or at least this flattened out, copper off the high, all that stuff but we did seem to get a restart. the overseas data has been better despite the fact you have a lot of news flow out of asia about covid restrictions being replied. european markets are breaking out. and it seems like the playbook david is in there for a little more of a global acceleration right or wrong. >> yeah. even though it is not as clear that things are accelerating >> far from it >> to your point >> that's right. it is the markets trying to peak ahead to it. the yields have been going up and i think the idea that that 2 whole game plan of "it's better when things are going to start to improve for markets than when they have already obviously improved." it is a way to play another reopening if you want to position towards europe once we've already kind of capitalized on the u.s. reopen to a large degree. >> yeah. we did get -- i was noticing

guy, boeing is leading the dow this morning and we did david get a nice upgrade of boeing cowen says he goes to a buy. 240 goes to 290. basically on notion of improving air traffic but more than that david, it is about the likelihood or the chances that international travel over time does in fact recover, which would lead to more production of wide bodies which are generally older, production is down 50%. and that is where you would be talking about another leg higher in his view for va despite all the regulatory friction they have had with the dream liner and the max last couple years. >> even recently, there's been more news and at least some questions. but the stock had morjd ahead. up almost 19% for the year there have been some production numbers pout there i guess for monthly for the max that the company at least did not endorse. i think it was a reuters report

of a couple weeks ago that got things going a bit, mike but i always come back to business travel when you hear international travel and question marks i believe whether we'll ever reach the point it had in 2019. not that people aren't going to travel for business. but will they travel at the same level. fraction we were just talking about sofi going public through the spac. a road show? never again. everybody i speak to who does road shows, we will never travel for a road show again. they will do them virtually. because in fact they are able to do it so much more easily and frankly reach more people and more potential buyers of any given stock. there is one example of something that at least based on all the comments i've heard not coming back in terms of business. >> right and easy to kind of forget for a moment that before the pandemic, you know, you had massive load factors. airlines are running flat out. it was really the boom times and

renaissance for the industry also, what's the real sensitivity of boeing shares to miles traveled, airline miles traveled this stock benefitted back in the heyday from the certainty of a multi year backlog in free cash flow outlook. it is unclear if you are going back to that level. >> interesting opening action. the dow is trading above the may 7 close. same for the s&p about four points from an all time s&p high. we didn't do clive yet. >> that deal you just mentioned. let's all the it 4.7 billion equity value they do vom debt headline of about 5.3 billion but really about 4.7

16 bucks a share in cash there is as we often see in these private equity deals of course a 30-day go shop. and i guess i should have mentioned. quick couple of calls this morning, doesn't appear to be a thought there would be ab overbid but i don't have great insight on that either that is about all i got. >> right it is interesting how you have some of these high concept cloud, you know, playing a big theme. stocks that settle into kind of a range which is what cloud ra did. and private equity jumping on them because they seem to have this reliable nature

>> you know, i did want to come back to you on something you and i talked about a lot through the last few months. i was starting to get already preliminary hedge fund numbers for the last month it was a tough month versus the growth versus value trade. and when we look at a nasdaq still trailing over 500 basis points in terms of performance this year, bring us up to date on where things are. >> what's interesting in the last several weeks is there hasn't been a day to day consistency of what the leadership is. now in a net basis the nasdaq is still lagging. it is up off the lows. something like a facebook really had a good rup at a new high by some measures at goldman sachs. literally the most concentrated owned stock by hedge funds but that doesn't mean it is working across the board i think it's been very whippy in terms of rotations of tough to catch. just as easy to get'em wrong as get'em right from day to day so going sideways in a range,

the s&p up 12% year to date is going to be tough for hedge funds that have any short exposure at all to actually perform in that environment. >> yeah. >> so growth is not down for the count. great rally in, you know, the ark etf and those stocks off the low. now the question are we rereverting right back to it. >> and we don't have many stocks in the red but netflix would point out. already down 7% this year. apple barely eking a gain but still down 6% so far for 2021. >> yeah. you mention ark of course. lot of reporting over the last couple weeks about the interest of shorting various arc instruments and then a report today goldman initiated a short of the long bond i think targeting 255 which would put the ten year i think somewhere

in the one seven range i know we're a bit higher today but it was remarkable to see us drop below one six last week >> is it was and its been very very stuck and steady in that range for, you know, really sincemark >> and its just been kind of shoe chewing through that for a while. and yes there's been all kinds of global flows and all the rest i do the think if you looked at the chart you would say maybe now it is time because it sort of kept its up trend for that selloff in treasuries and the rise in yields maybe to resume

for a while. not sure how much juice is in there and obviously we got a fed meeting middle of this month that is probably going to have a lot to say about, you know, how people view bond buying the yield curve and all the rest, david. >> where we started the discussion oil should point ow. exxon and chevron up nicely. but don't want to forget last week, the dramatic historic week for exxon mobil and we should get a preliminary count on the proxy voting as i had reported last week o certainly possible if not more likely tan not that engine one is going to get that third seat. we may see a preliminary tally i think very soon. but it could be couple of weeks before we get the official tally on that historic vote, mike, that also may continue to sort of add -- not -- in a way seen as a positive because how many companies, you know, as they try to change their profile or open up to these kind of questions/attacks from activist

investors in terms of at least their carbon footprint so to speak. will they spend even more on capital to get oil out of the ground that certainly doesn't appear to be likely. >> it doesn't seem at all. puts them on the defensive also raises a little bit of a question in general for the esg mandate, the esg ethos in the sense of like, if everything is esg is anything esg. and i think there's been work out there suggesting that it is pretty tough to, you know, figure out exactly what's getting done you know of course in case like exxon there's actually long-term strategic decisions that could be made in the direction of. >> without a doubt that's much more black and white than others. and as you you know carl many of these index funds use it a it is chief way to raise capital, this

e esg patina they put on hedge funds at this point. >> last month in norway. 60% of new car sales in norway in may were evs. whether or not that is going remain an outlier globally remains to be seen but that's sort of -- that is sort of the very long aspirational view of the esg community. and by the way, on a day where elon musk is talking about prices going up because of all these supply chain pressures >> and norway, a country made rich by oil. >> i was gonna say the greatest social security system in the world. those five, six million people living not to worry at all because of oil and yet there is 60% of their -- good for them. >> proving it was just a transitional technology all along. >> how many here, about a hundred. little over. yeah not too bad >> carl. >> i know, but, you know, we just showed that -- we just showed that musk tweet

and couple that with rising prices in the auto business. bullard saying the labor market is tighter than it looks the journal piece over the weekend about manufacturers now blaming inflation on tariffs and asking the biden white house to roll back the trump tariffs on aluminum and steel so all of this is of a piece. >> it is without a doubt. it is i think by far the prevailing macroconversation is inflation, how faz does it move. is it here the stay. what does it mean for valuations right now confident all they have to do is signal they are aware what's going on and remind everybody that more is inflation is part of the goal, it is not necessarily a side effect. so that's what makes it interesting as we get closer to a tighter labor market and more economy more back to normal whether they will stay with that and i guess the mid june fed meeting karl is the reason it is

starting to gain prominence as well. >> and one more thing on to that part of conversation whether or not the chip shortage stays for a matter of quarters or matter of years is something that was commented on the last couple of days. >> this transformation has created a cycle of explosive growth in semi conductors but it's also placed tremendous strain on supply chaining around the world. while the industry has taken steps to address near term constraints it could still take a couple of years for the eco system to address shortages of the foundry capacity, substrates and components if the past year taught us anything it is that the entire supply chain needs to rise to the occasion to ensure no individual bottlenecks limit growth for the industry. lack of supply constrains the growth we need to refuel the world economy.

>> interesting comments from gelser inger david. >> it is an infrastructure question too and comes back to earlier conversation we were having with eamon in terms of where things stand. that is part of the plan i guess to spend money on key things for overall for continuing to sort of have a semiconductor industry in the country at this point intel is more or less all we have when it comes at least to certain types of --. >> yeah. and the collision with geopolitics as you want to lessen reliance on asia pacific. guys we're back to 4221. let's get to rick santelli >> good morning carl the treasury complex of course has been more about buying

pushing yields down but not today. two week of tens last tuesday, wednesday, we had low yields, high prices of 155 we have turned the corner a bit. we ad auctions last week twos, fives, sevens. the twos under under a water the fives are actually a scratch. excuse me. ten -- sevens are a scratch but the five year that's where the pain is. the auction went off whisker under .79 now hovering at 82 basis points about 3 basis points of loss there. we want to pay attention to that our may final read on market pmi, 62.1. a nice improvement over the mid month read of 61.5 which now gets put in the waste basket 62.1 is a post covid high. and yet to come we'll have construction spending and the national ism all at the top of the hour let's get back to the charts so 2s, 5z, 7s were auctioned

5s under water and the other two are about a push a one month of 10s, this is important. because we casebasically exited april same place we're entering june and just to demonstrate how the strength in equities with the reopening trade and all the money that is raining down from central banks is definitely pulling up interest rates by the boot straps. as you can see on this chart you know, the left side wasn't very correlated. the right side hitting back in sync ideally we want to see rates up,stop stocks up and the dollar index up the dollar index fight bug losing the battle on canadian side one week of the dollar versus canada, jump up to a six year because that is the last time the dollar index was at these weak levels. carl back grew >> rick, thank you very much

rick santelli. so we did get a big pop of the open dow was up 320 currently up about 150 or so s&p on track fourth day higher something its not done since march. "squawk on the street" continues in a moment. if your money is working toward the same goals, why keep it in different places? sofi is a one-stop shop for your finances designed to work better together. spend with sofi and get cash back rewards that automatically go toward your goals. like investing in stocks, etfs, and crypto. that's better together. or pay down your sofi debt sooner. that's better together. and that's how sofi is helping millions get their money right.

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zoom is set to release quarterly results. stocks still up more than 800% since the 2019 ipo mike, i wonder what you make more of the balance from 273 in early may and peloton the same basket up from the low of eighty >> i think it's sort of still guilty until proven innocent if you take a broad approach to where it looks like it bounced up to, it didn't prove it's headed anywhere near back to the highs. along with all the other hyper growth stocks, there was a three-month bear market. once you have that, you're going to get the bounces and maybe it can gather some strength and traction over time and regain speed. but it didn't necessarily i

don't think change the whole complexion here. an issue with their earnings growth of these types of companies not looking all that great relative to just the average company out there because we're going to have such a strong snapback. over time, growing into the valuation most likely, but probably still a little bit of a short leash. yeah for sure and the debate will continue as to whether -- to what degree they are incorporated structurally in the daily office life we'll take a break as we said, a nice pop on this first day of the month at the open the dow gains veeecuha bn t roughly in half. we're back in a minute at cdw, we get your it staff has be ready to take on new challenges. that's why we built an office obstacle course ...

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biden floating the idea of retroactive capital gains taxes. potentially painful details. >> good morning, david president biden's budget calls for the largest capital gains tax increase in history to take effect more than a month ago his budget released friday calls for the retroactive tax hike raising the rate from 23.8 % to 43.4% to start as of april 28th

of this year if this passes and you sold stocks or a company or a property after april 28th of this year, you could owe back taxes. it means all the planning may already be too late. treasury given the first ever revenue projections for that as well as the elimination as well as the step up in basis saying those two combined generate about $320 billion in revenue over the next decade some investors already opposing the idea of a retroactive tax. the ceo of goldman sachs saying it would create extra anxiety and uncertainty. but there have been retroactive income tax increases in the past never, though, a retroactive capital gains tax. treasury is saying this was all needed to prevent investors from avoiding the tax by selling assets before it takes effect.

and guys, now as we mentioned, all the plans for the people that they may have had to sell assets before it could take effect next year, basically too late if it passes >> right but what it does is it may not quicken your pace in terms of doing it you think well, it won't really matter which will have the same impact even if it isn't retroactive. >> well, exactly right that's why it's so hard to predict capital gains tax revenue. you're trying to model human behavior and there are those who say when you get rid of step up and increase capital gains tax, that encourages selling because there's no incentive to hold it until death. there are others saying all of this together is going to freeze assets for years until we get a change in tax policy so we just don't know. >> right well, we don't know a lot. of course, as you point out, there are many who believe this is not going to happen robert, appreciate your continued coverage

thank you. carl >> we'll take a break here ism and construction spending at the top of the hour. don't go anywhere. it's coming back to you now... real pants. find amex offers to save on the brands you love. one of the many things you can expect when you're with amex. [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.

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good tuesday morning welcome to another hour of "squawk on the street. i'm carl quintanilla with david faber and morgan brennan a nice pop to start the month of jub. dow is up 300 plus at the open we settled back a touch here this time ism manufacturing and construction spending. let's get back to rick santelli. >> yes on the construction spending side, we're expecting up half of 1% for the april read. less than half, up .2% construction is important. new homes. the lack of supply and the input costs, but there's also labor issues there's a lot of moving parts here on ism manufacturing for may, 61.2 now, keep in mind 64.7 was our number in march. that was the best level in 38 years. so even though this is a bit

lofty, it certainly has been a bit higher but this is as expected now, let's go to prices paid, shall we 89.6 in the rear-view mirror 88 currently the 89.6 in the rear-view mirror was the highest level going back to july of 2008. if we look at new orders, 67.0 that's versus 64.3 maybe this week of all weeks considering thursday's adp and friday's big labor report for jobs, well, theemployment side a big disappointment 50.9 versus 55.1 last month. and expectation very close to that same level this time. so everybody remembers that. 266,000 real minimal jobs number for last month morgan back to you. >> rick santelli, thank you. 30 minutes of thtrading session.

abbott labs a quote rapid decline in covid-19 testing demand the shares are down about 6% right now. meantime, cloudera, the company acquired for $16 a share shares are up almost 24% right now. and we will end with amc extending the rally amid selling more than 8 million shares to an investment firm. that's the latest in a series of capital raises for the theater chain. even with the stock more than doubling just last week. for more on all the action we're seeing in amc in general, over to kate with more on this for us >> morgan, good morning. another mean stock rally amc shares have been up more than 20% after the movie theater chain says it's doing another

capital raise. this is an equity deal amc is selling 8 million shares. it's worth about $230 million through a stock sale to mudrick capital management they will use the funds for upgrading the theaters and deleveraging the balance sheet and some potential acquisitions. we may see m&a shares roughly doubled last week on way higher than normal volume held by the speculative trading activity we've seen amc ticker trending on twitter as well it is the most talked about ticker once again on reddit this morning. that's according to data from thinkdom the ceo tweeting about it this morning. he's been embracing what's going on in the retail market. the company is taking advantage of those price surges a couple times here selling additional shares to raise cash the stock is up more than 1,000% near to date this morning, the ceo tweeted

directly to those investors and tried to have a rallying cry he said this is not mindless delusion but rather, this is a very smart way of raising cash so we can grow this company and he says watch out nay sayers amc is going to play on offense again. guys, there are plenty of nay sayers amc still has around $5 billion in debt. it needed to defer roughly $450 million in lease repayments during the pandemic as the theaters were closed and covid has fundamentally changed that business more people are relying on streaming. a bright spot for amc. north american box offices brought in nearly $100 million in ticket sales. guys, back to you. >> kate, it's david. as we said earlier, the mudrick purchase very likely tied to their ownership of debt in the company which obviously will

benefit from it being better capitalized. it's a company that's sold so much stock going from 100 something million to over 470 million shares at this point but that's got to be a key here and it's possible mudrick is out. they haven't returned a call we're talking about volume i have it at 130 million shares already. what are we 35 minutes into trading? >> yes last week, if you look at the ceo tweet, it's interesting going directly to investors. that's something that's rallied the crowd, framing themselves as the underdog the little guy saying we're on offense again, speaking out against the nay sayers that seems to be one of the formulas we've seen it with game stop and roaring kitty. a lot of the traders like to think of themselves as the underdog it seems like it's strategically speaking to a certain type of investor there >> thank you we'll talk about this later in

the hour stocks more broadly are rallying to start the new month of trading, the month of june as you can see, the s&p is up. let's bring in art cashin. great to see you this morning. >> great to be here. thank you. >> in terms of technical levels, what are you watching for the major averages right now >> well, we're bumping up against the high that rectangular range we've been in since april. even the end of march. and we got very close this morning. the resistance in the dow is about around 34, 80 0. and i think we got up around 34.780 you approached it not so closely in the s&p and nasdaq. s&p is probably up around 42 48,

4250 the bulls have been unable to share the touchdown. they get within inches, and we haven't had a breakout unfortunately, some of that, the technical levels that we look at, get dissorted by the chat room stocks you were just talking about, because they raise the volume you get things like advancing volume versus declining volume, and a chat room that trades 50 0e million shares and it distorts what it looks like for the market for now the bulls are in good shape but have to score the touchdown. >> iwant to take into the distortions a little bit more. we've heard about shell in -- sell in may, swoon in june how much do you expect seasonality to effect things given we're in unusual times as

we climb out of this pandemic? >> well, it is unusual and seasonality waxes and wanes a little bit i'll a big believer in it. having been in the business 60 years, i think we see what's called the phantom limb syndrome unfortunately, you have your arm cut off and yet, your nerve system seems to feel as if the arm is there we've had seasonality as if we still have crop cycles money would go from citi banks to country banks to pay for harvest and go the other ways when they feed money for planting and fertilizer. when we wound up having more smokestacks than sea stacks, the seasonality continued. i'm cautious asht sell in may. it's been around for a long time i know the last couple of junes have not been that bad june traditionally is the worst

or second worst month of the year or certainly if you want to put it that way, least productive it's not that it's down the most all the time but it's tough getting a sustained rally. >> art, it's carl. looking at the prices paid indices for the ism and pmi this morning came off a touch from the prior set of data. is that a flash of hope that, in fact, some of these input costs have topped out earlier in q2? >> well, i think we saw that earlier with lumber and a few of the other commodities that were soaring to the sky and then stuttering a little you also have evidence of something else, i think. on friday that pce number which is supposedly the fed's favorite inflation index was almost red hot. and yet, the market shrugged it off. so i think you're seeing people

saying well, maybe the inflation is either transitory or is not as big a threat. that having been said, we're seeing hedge funds easing out of commodities, so some of these people don't believe that we're on the verge of inflation. as i keep telling the viewers, inflation is not about more money and what the fed is doing. it's what we do with the money you have to lend it or spend it. and the velocity of money that be slow. it's as if they dumped a million brand new dollars on your lawn and you're so nervous you put it in the garage. if you don't lend it or spend it, it will lead to inflation. >> key points. we've seen numbers for a lot of commodities come off the last couple weeks even as we see the argument around inflation in the crude market taking hold right now with opec plus meeting

but to go back to the point you made about the velocity of money, we're starting to see this latest tranche of fiscal stimulus make its way into the market hearing about a tidal wave of liquidity. to bring this full circle, when we talk about distortions in the market, how likely is it you could see more of it given the fact that there is more liquidity coming? >> well, it's always a factor. and it's one of the reasons in the short term it's very difficult to get bearish but you've got to look at the differences between -- let me divert to company buybacks company announces a major buyback, but until they actually execute it, it's not going to have that big an impact. so what we've seen trillions, it's tuf for me to say it given this 60 years, trillions with a "t", about to come into the market they're all proposed but they haven't all been spent

yet. so yes, the potential is out there. it could turn inflationary don't forget what we saw in the 70s, what we old-timers call guns and butter where the government tried to spend on everything and not cut back anywhere else. could we get that? yes. but so far they haven't begun fully spending all this. that's the argument between the republicans on infrastructure. they're willing to spend money, but they're saying let's spend the money we committed to spend but haven't spent yet. so your point is very valid, morgan, but until they actually start to spend it, that's when we'll feel the impact. >> art, great to start the hour with you thank you for joining us >> my pleasure thank you. as we go to break, let's look at the road map for the rest of the hour we'll start with bitcoin coming off of the second worst month ever, dropping more than 35% in

the month of may >> elon musk blaming supply chain pressures for the recent price increases for tesla vehicles we'll dig into the chip shortage and the return of live events we'll speak with the ceo of cirque du soleil it's a big hour. don't go anywhere. the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. do you struggle with occasional nerve aches in your hands or feet?

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stocks continue to hit new recent highs this morning as we look at amc entertainment. gamestop shares up joining us is the former ceo of e-trade. carl, great to have you this morning. somebody who ran one of these platforms, e-trade, owned by morgan stanley now and benefitted from the new cohort we've seen in the marketplace for about a year, what are your thoughts in terms of whether they have staying power, particularly as they continue to participate in certain corners of speculation in the market that eventually may not end well >> thanks. i agree with you this is not going to end well. i think historically we've seen this in the past i do believe this group has staying power. did anyone expect that following what we saw in january and where the stocks went to and what happened that we'd see a return

of the meme as we have particularly with amc. i believe this group has staying power. i think the availability of the platforms that are out there in the space, the social tools that are now available to all the traders, the way they follow one another, copy trades and dig into some of the companies and ideas that are brought forward, i think they're powerful tools i believe these folks are here to stay. >> yeah. i know for a fact you and i have at least sons the same age we go way back from baseball, but they're doing this stuff they're out there in college they're trading this stuff on their phone all the time i don't know that they have a clue, frankly, and i'm just curious if it's your experience and how important education ultimately will be in keeping this cohort sort of involved >> it's funny you mention that so i've tried with both of my

sons, they have e-trade accounts, and tried to teach them some of the fundamentals and why some companies do what they do and where they are and, of course, they keep hitting me as to why don't we own any dogecoin >> i bring it back to fundamentals they hear from their friends they made $10,000 and they're taking the rest of the summer off. how do you combat that and talk through that with the individuals who now have access. the par has been lowers in such a way that they can get involved in stocks at an early age. i go back to fundamentals of education. right? financial literacy how do you budget? when you make money, what happens to your money? what are the tax implications? how do you have an emergency fund to save for a rainy day fund what amount of money can you afford to lose when you look at what they're doing in some of the shares today, or some of the cryptos that are available to them, that

has to be completely risk capital. so i keep bringing it back to education. there are some great platforms and apps that are out on the marketplace, and it's great groups i know cnbc and some of the contributors are involved in some of those that really bear on economics and how do you get involved and what does it mean when you're investing in a company and how do you evaluate a company from the ground up what is that company worth, and what's at risk what can i afford to roll the dice at stocks taking off for no reason other than social media >> carl, it's morgan you're talking about financial literacy and education that is what we strive to do on a daily basis at cnbc. i think we're on board with that commentary, that being said, when you say it's not going to end well, how do you know i mean, are there other events or other examples that are similar in history that lead you to that conclusion i mean, we know from trading in general whether you're a professional or not, there's winners and losers on the side

of every trade >> when i think it's not going to end well, i'm speaking about some of the meme stocks. take amc, for example. you see even the capital influgs they have this morning, i applaud the management team, because they raise those funds to help them with some of the intrinsic issues that they have. both on their balance sheet, and with their business model. but when you look at what's -- what the company is based on, the industry it's in, absence strategic undertakings by the company, it's not worth what it's trading for right now when you look at it from a fundamental analysis standpoint, and you look at any of the metrics that you would use to take a look and evaluate a company. what i worry about and when i say it's not going to end well, i worry about the last retrail trader who is left holding the bag when the music stops that's historically what we've seen if you look at the internet bubble and the financial crisis that we had in '08 and '09

there were retrail traders late to the party or try to grab on at the end of the rally. we've seen that a ton of times historically that's why when i say if you want to be involved in these types of companies and you want to lay that kind of capital on the line, make sure it's a risk capital. you know what you put forward. and you can afford to lose everything you just invested because there is a chance that's going to happen in the stock market >> i want to shift gears on a day where we're seeing sofi trading publicly there's focus on robin hood as we get ready for that ipo. i want to get your assessment of the finfek landscape as we see the newer startup companies basically expanding into old school areas of financial services right now even as they're being valued at much loftier valuations, and essentially being seen by investors as tech companies. >> i've struggled with this one for a long time. in my e-trade days, they looked

at us as a bank. understanding what you're saying on the fintech side, i think some of the platforms are phenomenal the way sofi has banking capabilities now and has been there to help students refinance their student loans from the beginning, they provide valuable services the barriers to entry are low. when you look at the website, it's easy to interact with and if they crack the nut, if you will, with respect to bringing investors or bringing individuals on board to use the platform that's what i've seen the most as -- on the spac side of the house with what i do every day looking at some of the companies and seeing the technological advancements they've made and the user experience, quite frankly, it makes it so simple to transact and to move money from one place to the other to fund with your bank account. it's almost instantaneous. i think we're at a very good

place from a fintech landscape the companies tell great stories and now it's up to the management teams to deliver on the lofty valuations it's not an easy go. >> appreciate you taking time with us. thank you. >> thank you, david. appreciate it. >> carl? >> watch bitcoin this morning. we are coming off the 35% drop in the month of may. we'll take a closer look at what the xtovne mes may be when "squawk on the street" continues in a momen

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and only pay for the features they need. welcome back to "squawk on the street." it is now time for our etf spotlight. we're looking at the chip stocks ticker smh that is participating in the rally it's up about 15% on the year. as you can see, up fractionally today. one of the group's biggest holdings, intel, off the initial highs to start the month of june with the ceo saying it could take several years for the global chip shortage to be resolved he made the comments while speaking to a virtual session at the trade show in taipei

the ceo saying the work and study from home trend furgt pandemic has led to a, quote, cycle of explosive growth in semi conductors that's placed huge strain on global supply chains shares of intel are down about .3%. speaking of the chip shortage, tesla is raising the vehicle prices musk blaming supply chain issues this as the ev maker expang is testing advance self-driving technology it's looking to take market share from tesla we have more on all of it from beijing. >> thanks so much. the vice chairman told me the company was plaezed with the p-7 deliveries the p-7 is the rival to tesla's model 3. and the company said that that was what helped drive their may sales. the may sales were up 10% from april. nie seeing deliveries fall 5%.

both companies complaining again about the chip shortage. >> may actually is a very challenging month for the industry because obviously we mentioned there's supply chain constraints on the chip shortage there's also the holidays and holidays are impacting delivery for the first half of the month. but still, i think despite the challenges, registered very robust increase for us the vice chairman said he's feeling confident that the company will be able to hit the quarterly guidance because of the excitement over the p-7. the company has been packing the p-7 with a lot more autonomous driving technology and the plan for later in the year is to roll out a compact p-5 which is going to get all the works they say valet parking, high definition maps, and then also lasers in their

autonomous driving features in order to try to get people here more excited as you know, chinese love technology and they also are quite -- look at safety conscious as well as budget conscious. >> and the lime green color. that's a flashy car. we were showing video to your point. >> and the wings >> yes you know, we get this on the heels of tesla's vehicle price increases due to supply chain pressure as well elon musk tweeting about this over the weekend i'm curious as we see this ev competition ramp up in china, we've been hearing the reports in recent weeks about not only the critical eye that's being taken to tesla specifically in that country, but also the fact that china is looking to basically support its own home-grown ev makers what does that dynamic look like has any of the shine or i guess the luster been lost where tesla is concerned

>> well, you know, i asked that question to brian, the vice chairman i asked him are you starting to see some of these problems that tesla has reflected in your sales numbers? he said he hasn't seen those -- that concern really reflected yet. although, he does anticipate that he could potentially benefit from tesla's woes. so that's another reason why he's ramping up the technology and really trying to hammer home that the p-7 is a great rival competitor and from what -- from his point, much cheaper and a better deal than the model 3 >> fascinating look at how various countries and important ones are viewing the ev market appreciate that. let's get a news update this morning. good morning >> good morning. here's what's happening this morning. supreme court announced it will not hear an appeal from johnson & johnson. the company hoped the high court

would overturn a damage award to 22 women who claim their ovarian cancers are linked to their talc products and trying to reduce confusion over covid variants. renaming them using letters from the greek alphabet the variant first identified in the uk will be known as alpha. the tel aviv hospital, doctors and nurses celebrating the loosening of covid restrictions with a bit of a concert. a mask mandate does remain for some indoor activities but most of the rules have been lifted. and take a look at this video. this is from a drone flying above the shield volcano in iceland as it's erupting the operator said that the conditions did make flying the drone a little tricky. so tricky, in fact, that it crashed into the molten lava with the camera still sending back these incredible pictures

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we're about an hour into the trading session. fading from the highs reached earlier this morning with a more mixed picture for the major averages the nasdaq turning red in terms of the s&p specifically, we're up fractionally right now the biggest leaders on the s&p are actually energy names as we see wti trade at multiple-year highs. apa corporation, occidental, diamond back up this morning in terms of underperforming, abbott labs down nearly 7% righ now and others as well carl >> morgan, as you know by now, bitcoin came close to the largest monthly decline on record in may dropping 35.5%

continued moving lower from the april highs of over 63,000 joining us to discuss the prospects for long-term growth is tom jess sup. welcome back it's good to see you i wond whaer you made of the decline in may and whether or not you think we're in an area in the mid 30s that can be sustained for a while. >> that's a great question i think the cycles are part of the maturization as an asset class. we've had significant drawdowns, north of 30% over the life of the asset. i think we had some leveraged-driven excess build up in in the market if you look at the open market future exchanges going into the mid month correction, in some cases we touched close to 30 billion worth of leverage, driving prices higher. in many cases the investors could trade on 50 to 100 times

leverage the leverage has come down significantly, in some cases by two-thirds this is typically a cleansing process we've seen in the asset. hopefully with basing and positive news flow, we'll see things stabilize >> right i wonder if you can sort of describe qualitatively the way in which fidelity clients see the asset. i mean, is it really a hedge against inflation? do they see it as promise of a payment mechanism over time? is it just a way to diversify your overall portfolio in general? is there a mix >> i would say the predominant narrative at this point is the digital gold narrative it started driving the market higher a year ago after the pandemic there are a number of clients that are concerned about fiscal and monetary inflation and they see -- bitcoin specifically being an important part of that thesis. i think there's a smaller number of investors looking at it from

an allocation standpoint given that the difference that are drivers for the asset class and the lack of correlation at least over longer periods of time. there's a more traditional element of asset allocation coming into the mix as we. and then there's a third bucket where people look at it as a network defect opportunity, the same way you see growth in platforms. owning bitcoin is effectively -- the technology that needs payment. >> does that mean if you have your 401 k with fidelity or invested in another type of fund that anybody could have some sort of crypto currencies through your platform if they wanted >> we are focussed on institutional clients. we do not serve retail inve or thes but many of our institutions have consumers and other types of investors they service. it's become part of a broader

asset allocation or investment framework for the clients. >> i wonder what you think of p polygon. >> to be candid, i don't follow the tokens there are clients primarily in the larger cap names i'll say we're seeing much more interest now in things like athere yum i think it's significant trend going forward that bitcoin is effectively the gateway asset in the space that's forced a lot of investors to converse an understanding of the power of the underlying technology. i think what we'll start to see, other uses for the technology, i think from here we'll see the cycles accelerate. >> tom, we were having a discussion a few moments ago about youth invesing and getting kids started early on equities i guess etfs as well

fidelity created the youth account, 13 to 17-year-olds. is it open to crypto today or any kind of digital asset and would you envision it being folded in over time? >> no. currently, we do not offer digital asset exposure to retail investors. having said that, we're seeing a lot of demand. as you've seen broadly in a financial services space, interest in this space has forced large institutions to begin to think more broadly about applications of the technology asset classes over time, it's something we'll look at. finally, of all the bearish cases which we literally address on a daily basis, the esg, the energy consumption, the central banks, skepticism, the irs regulatory, the sec, is there one that you think fidelity clients fear the most? >> i would say we poll our clients. i think the one clients are most concerned about is the

regulatory environment and we believe that regulation is a net positive for the industry i think any forward momentum in terms of clarifying some of what goes on whether it's from an sec standpoint or what treasury wants to do, movement in a positive direction will invite more of these traditional investors into the space i wouldn't say it's a concern, but it's something they look it, and quite frankly, they want to see more progress even though a lot of progress has been made. the other issues, like, for example, esg, i think through a careful observation of the data and understanding both sides of the evasion, i think over time we'll get to a place where a number of investors will be satisfied in what's going on in the space relative to their own esg mandate or aspirations >> yeah. certainly something the industry is working to address and communicate and we'll learn more over time, hopefully with better data a fascinating look we'll see what june brings good to see you again. >> thanks. take care.

as we head to break, take a look at canopy growth shares they are under pressure after reporting a smaller than expected increase in revenue for the fourth quarter the company did cut the quarterly loss and reiterated it expects to become profitable this fiscal year we'll be right back. 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.

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more than $1 billion invested and donated by u.s. financial companies in 2021 aiming to provide capital to black-owned businesses or address the racial wealth gap and other inequalities when you look at the donations in investments, the commitment by jpmorgan, the largest black women-owned business is the focus for several of the investments. some also going to black-owned banks. you have to remember, black-owned businesses were disproportionately impacted by the pandemic at the height of the pandemic, 41% closed operation hope received a $20 million investment they launched a $130 million investment with shopify to create 1 million black businesses the owner is the only employee in 96% of black-owned businesses and these investments lead to job creation and benefit the broader economy. >> the employees are paying

mortgages and car notes and 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 racial wealth gap is conservatively $11 trillion according to the latest research, it could be as high as $13.5 trillion the estimates is real gdp would increase up to 6% if the gap was closed to put it in perspective, even if inflation remained at 3% annually, we saw 3% inflation in april. that per capita increase in gdp would have more spending power in 2028 than all the stimulus checks combined. back over to you >> frank, i know you're going to be doing an online discussion of the history of black wall street

streaming today. you want to talk about the conversation you have planned? >> yeah. absolutely it was a very deep conversation. not only about what black wall street meant, but what the instruction meant over the last century. remember that many of us in our lives, we get things from our parents. they're passed down. whether it's a house, a car. in this case, this was thousands of people. they just didn't have that opportunity. homes were taken away. businesses were taken away, even savings and banks were taken away and that had a ripple effect throughout the country that we're feeling today yeah the echo is just as powerful as the actual tragic event itself we look forward to that later today. our frank holland in oklahoma. frank, thanks so much. we'll take a break coming up on tech check in a few minutes, don't miss sofi's ceo as the stock is going public on the nasdaq this morning. that's at the top of the hour. we'll be right back. stay with us

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112. nasdaq turning lower get to courtney reagan with a sector sort as we see energy, for example, continuing to outperform in the s&p today. courtney >> yeah. hi there good morning, morgan markets are misxed to start the abbreviated week with yesterday off. notable laggard. and energy on the other hand up more than 3% today within that energy group seeing big games in names like occidental, apa corp., and up 10% after an upgrade at raymond james and moves in energy stocks come seeing crude prices jump to highest level in more than two years. opec plus seays the group will reduce prices in july. back to you guys. >> thank you. vegas is back, baby! full reopening and returning to

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welcome back cirque du soleil reopens, full capacity today intermission over with mystery opening in the coming weeks, the entertainment group president and ceo joins us now daniel, welcome back. >> thank you we're very, very happy. >> what is it going to take to begin to open up these shows in vegas now? >> so we are, as we speak, in full rehearsal for those two shows, and we are going to open ing "mystery" and "o" and another june 24th. >> what will that look like for show-goers later this month? as if the pandemic never happened or certain protocols in

place that didn't exist before >> yes first of all, as you know, the governor of nevada has released all the restriction as of today. and, therefore, there will be no restriction, except that we want to take care of our cast and crew and the audience. so all of our cast and crew is going to be vaccinated, and we are going to have some measures to make sure that the audience is well taken care of. >> last week black nation ceo said many rebounding what are you seeing with ticket sales? >> glad to report every day we sell double digit, double tickets used to sell on prior days a huge momentum looking forward to be deconfined, see human performance. what we have to offer, human

performance. >> yeah. all looking forward to that. i wonder, though, daniel, over the past 15 months what has the company developed in terms of enough businesses, perhaps, or new practices that will stay with you even after you get back to human performances? >> yes first of all, we had a huge, you know, impact with a new format, a new platform developed called "cirque connect. reached out to about 62 million viewers around the world it says there is a market for us outside of just live entertainment, and the other thing we've learned also is digital marketing is going to become more and more important so right now with the opening of vegas and soon the opening of a new show in orlando as disney theme park, we are, we believe that this momentum is going to bring back the company to where we were before the crisis. >> yes speaking of that obviously, given the financial

ramifications of what you went through, you had to change things in terms of your capitalization bring viewers up to date where are you on that? are you -- you know, is everything settled and who is your main owner at this point, daniel >> yeah. the good news is, after the crisis, we have been totally supported by our lenders, and there is a group of them they are the leaders it's catalyst group and cban and soundpoint, three organizations leaders of the group that have decided that they believe in the future of this global brand called cirque du soleil and are supporting us. not only by making sure that we have a great future, but by infusing $375 million new dollars to support our growth moving forward. >> daniel, you mentioned orlando. talking about vegas as well. what is the plan to continue to ramp up open shows in other key

markets around the world just as importantly, do you have the people do you have the performers who are able to get on and get up to speed quickly? >> yes the good news is 95% of our artists, we've stayed in touch with them, and they have mentioned to us that they are willing to come back and start over again and what we're doing in terms of development, it might sound a bit simple, but we are following the vaccine. wherever in the market there is a huge potential of people that are vaccinated -- for example, in london, in uk we know percentage of people vaccinated is very high. so we are planning to go to london in january. that's the way we're going to develop our touring plan moving forward. by going to markets where it's highly vaccinated. needless to say that we will have a very strong presence outside of vegas in north

america. >> all right daniel lamarre, thank you for joining us today and good luck with reopening of your first shows in vegas later this month. >> thank you. david a mixed picture with the s&p turning slightly negative that does it for us on "squawk on the street," though a big week ahead meantime, "techcheck" starts now. ♪ happy tuesday. welcome to "techcheck. i'm jon fortt with carl quintanilla and deirdre bosa today's amc's ceo embraces wall street and $230 until a stock sale stock up about 11% to start the month, and the cloud era goes private. the breakdown of the deal. one more software player is off the market. later,