and what is it, it didn't pan out when all was said and done, t up 80 points on the dow. >> back to the clo. >> yes. >> and the s&p up about 8. i was going to say something i told you, i called it i knew it couldn't get the five seconds. join us tomorrow "squawk on the street" is next good wednesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and mike santoli. david faber has the morning off. opening, inflation conundrum and hp and lots of news in the auto d retail space and amc, free popcorn.

>> plus elon musk twitter trouble. the s.e.c. reportedly says the tesla ceo violated his settlement agreement. >> what's the future for stay at home stocks like zoom? blowout earnings but warns of a slow down coming carl >> got to start with amc whether we like it or not. meme madne is really the appropriate term, whether, david, it's about a downgrade of imax and cinemark out of goldman, it does appear that adam aron has incredible situational areness and leaning into the reddit crowd. >> he is leaning into. it his contention is pretty simple as you lookt some of the work from goldman of course, where they're talking about a box office recovery, not going to be as strong as people think because of course something we've talked about endlessly here, the shortening of that window, and changing behaviors in terms of consumers but when it comes to mr. aron, i think it

is pretty simple from his point of view, i used to have an insti institutional shareholder base i had large shareholders, for example, wanda bei the largest, controlling shareholder for a while, institutional base, and now they're gone, it's shareholder base on retail, it's people on reddit, it's others, and it's retail and i need to communicate with the owners of business and the west way to do that and it may be through this new connect platform that they're putting togeth, where you can get some free popcorif you do connect with amc investor connect. or through twitter where he's been a lot more active lately. not that he didn't know how to operate on twitter, of course, remember he ran the 76ers quite some time back and pretty active on the platform back then and active again, but what is amazing of course is the move of e stock, $39, 16, $17 billion. >> about $20 billion nice and handy

half a billion shares. >> maxed out at ha a billion shares >> last week was 454.60. >> and i'm not sure that was reflected in the count i believe it's basically half a billion shares. >> that may be right. >> and it might have been the end of the authorization, remember they were going to -- >> how much stock they can actually issue >> authorize more new issuance and pulled that proposal. >> right. >> but call it 20 billion. >> and by the way, that's not including debt >> 10 billion in debt. >> yes >> and they have about 10 billion in debt. >> don't forget yesterday, i was making the point that the beneficiary, who owns around 200 million dollars of debt. by the way, they did extremely well, when they were the first to sign up for a $100 million debt offering, 15%, it paid 5%, that was long before the meme thing took off, but when this company's future truly was in question, in terms of at least its ability to avoid bankruptcy, and they did help there, mudrick

by getting in and shows the waters were safe in their opinion, 15% will help you do that, but to his credit, mr. aron was able to raise a lot more capital back then, and then since this madness has taken place, they have raised an enormous amount of capital through equity offerings as you point out. carl, yesterday i thought, was there anything, was it mudrick, he may have been a seller and obviously they did well and not nearly as well, if he just held on to the stock for another 24 hours. and 70 million bucks on the table. but it appears everybody, you know, did benefit. they made money, their debt position gets helped and obviously the company itself is able to raise even more equity >> yeah, you can say the same thing about the cmo, who according to the wires last night, sold 15,000 shares in the open market, but clearly, probably sitting on some sizable gains. it is interesting, though, guy, the degree to which we're separating the price action and goldman's point, they are

getting cannibalized by a shorter theatrical window and studios are distributing through multiple channels and behaviors have changed in the pandemic and eventually that will reflect in attendance whether we like it or not. >> yes, absolutely and it's really a vivid picture of this sort of collision or disconnect, call it, between evaluating the business, and what the stock has done, and the light that it has taken on amc as a company was basically says, because the stock went viral, and i mean that's what happened and so the only way to keep it going is based on adam aron's calculation, to keep it going, and basically make it kind of play to the masses, and allow this to kind of keep the self perpetuating thing as long as it lasts. maybe they can't directly go back and sell more common shares because they don't have the authorization but down the road, it is going to help if the stock stays higher but it has very little to do with what's happening in the business.

they're still burning cash they are probably going to be burning cash for a while right now. and i also wonder, like it's almost the point, the fact that it has nothing to do with the fundamentals, it is almost the point of why these things go viral, we are going to get demand, whether it is a valid thing or not so $20 billion in the grand scheme, the market cap of amc right now, in the grand scheme of kind of misallocated capital, if you want to call it that, is it really that big no zoom is down 20 billion. snowflake is down 40 billion that is theoretically that is 40 billion that shouldn't have been in that company and if people know it is play money on steroid, that's what it is apple's market cap is 100 fold, that 20 billion. just to put it in perspective. apple moves a couple of points, you're talking about losses of market value, not quite that much, but close but at the same time, it's interesting to me, mike, the idea that this ceo is choosing to communicate with his new shareholder base, and the question really is, do any of

them actually care about anything that he might say in terms of the underlying fundamentals it's not clear to me that it's about that it's about them continuing, as you say, which started with gamestop, sort of taking it to the man. and 20% of the stock is still short. >> yes. >> last report >> yes, more or less impossible to borrow. you won't able to pay for it if you want to, but that's still out there. 90-plus million shares >> this crazy option stuff going on, yesterday was a lot of volume and the weekly options that only pay off if the stock gets to 70 people are just really, it's kind of like lottery ticket, and people are paying a premium for them and that's just the way that the game kind of goes. at this level. >> you know, carl, though, one thing is, adam aron will have to be careful on twitter. you don't want to be overly promotional. you don't want to say, and give sort of a sense, and that of course takes us to the next story in some ways because we do know a ceo who has been accused of being overly promotional when it comes to his stock which has a far larger market cap. >> yes, the journal today, guy,

reports that the s.e.c. told tesla that elon musk had violated the requirement that his tweets be approved by company lawyers. it happened twice, once in 2019, and once last year the requirement was part of a 2018 settlement which you might remember, all of this was obtained by the journal through some foia requests so far, no response from musk on tesla. or tesla there is other news as well. there is a recall of about 6,000 cars, guys, on some potentially loose bolts, the reports that tesla is having to increase its spending in australia, on raw materials for batteries, to over a billion a year and then musk himself, tweeting about the shortage in the car components, saying he's never seen anything like it. compared to the run on toilet paper last year, on an epic scale and eventually ended the tweet by saying it is obviously not a long term issue. >> right and i'm sure that's true is it a long enough term issue

that it will compromise production estimates for this year to for tesla? that's one of the questions. is tesla front of the line i mean a lot of the sort of long-term pitch for the company was it had vertical integration, it wasn't exactly as subject to a lot of the vagaries of the supply chain as other auto manufacturers. it just seems like a lot of kind of small little pinches and squeezes around the edges of the tesla business right now that's going on, whether it is the safety stuff or the pushback in china, and the stock kind of reflects that. it's 300 bucks off the high from january. and that's not clear to me that this s.e.c. thing is going to matter because apparently nothing happened, right, david it's not as if there was consequences >> no. >> or even, i mean was there any disclosure in the tesla filings that there was, that the s.e.c. said there were violations >> not that i know of. >> it's not clear that's the case either. he sort of seems to stiff-arm the s.e.c. successfully. kind of keeps running down field.

you know, we watched phil lebeau and i'm sure you did as well, with the north american head of toyota, as they roll out their new ev lineup, in many ways, and you know, it does get back to the larger economic proposition in front of us right now, mike, which they're nine days, he said, nine days from the factory to somebody's garage, and/or to the home it's incredible, the consumer demand right now, it would appear, for automobiles. he's talking 17 million plus and that's if you can get them because obviously, we all know about the chip shortage and that has led to some slowdowns in production it's back to the larger question that we do entertain here often and should which is about inflation and just how hot this economy is running. >> absolutely. you know, the used car influence on the number, and everyone had talked about that, how it was completely outsized, new cars get dragged up along with that i think that's one of the things that, you know, economists,

investors, can kind of put aside, into the truly transitory bucket and it should be self-correcting. is ford's production slowdown which was announced, will it pinch gdp number force the next quarter? i don't know it hasn't seemed like it's going to but all that stuff shows you, carl, it is a very high friction economy right now for goods, and i know there was some data that supplier delay, delivery times are as long as they have been in 40, 50 years at this point >> yes interesting. david rosenberg, this morning, tweets, that once the demand boom is over, and supply comes back onstream, the demand downturn, guys, will cause inflation to morph into deflation, and we have had, if you look at three state months of decliningpurchase intention for cars and homes and appliances, and i mean to a large degree, the huge school of investors who hoped that this becomes self correcting.

>> right i mean it obviously was a pull-forward of a lot of activity, even home building is kind of rolled over a little bit from extremely strong levels, because of all of these constraints. that has an effect on appliances so i think we're in a little bit of a pause for that stuff that went crazy last year >> guys, still a lot to get to we will zeroin on zoom when we come back. getting a lift on some better than expected results, and upbeat guidance, although the slimmest beat on revenues, since covid began. we'll look at what's ahead for the stock and the work from home trade, when "squawk on the street" comes back ok, at at&t everyone gets our best deals on all smartphones. let me break it down. you got your new customers — they get our best deals. you got your existing customers — they also get our best deals. everyone. gets. the deals. questions? got it. but, why did you use a permanent marker? because i want to make sure you remember. i am going to get a new whiteboard.

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take a look at shares of zoom video, recovering after an after-hours decline in the stock, better than expected revenue, and issuing upbeat guidance even as more people return to the office joining us now is tyler radke, software analyst at citi good morning >> good morning. how are you? >> good, thanks. the big question surrounding this stock, a lot of stocks like them that were huge beneficiaries last year is, how much of a pull-forward of demand, how much of the total eventual adjustable market have he they now gotten to and what is the deceleration looking like, any clues in the numbers in the guidance, where you can now kind of handicap all of those things?

>> yes, absolutely i think this is kind of the poster child of a tale of two years. zoom had an unprecedented 2020, you saw growth north of 300% year over year at a multi-billion dollar scale. essentially the fastest growing software company we've ever seen in history if you look at the numbers for the back half of this year, by q4, that growth is expected to decelerate close to just 20% a year which would put this in kind of a more of a typical growth software company that you see, like the likes of salesforce or a workday, and our view is just that the stock's multiple may have a hard time correcting, you know, as growth slows down, and this kind of moves from a hyper growth stock to more of a growth at a reasonable price stock. >> right so we're talking about, you know, a stock that is still trading, depending on the numbers, 70-ish times forward

earnings where does it ultimately settle at and how quickly do you think it could grow into that valuation >> yes, so i think that over time, investors are likely to triangulate on where this trades on free cash flow. so if you just look at the forward free cash flow multiple, zoom trades at around 60 times, a little north of 60 times the salesforce service now's work days of the world, those trade around 30 to 40 times. so we think that as growth decelerates, that multiple may have to recalibrate, which is why we are neutral rated on the stock. >> there's a lot of talk about trying to create a next act for zoom whether it's an app store. or different products, you know, the kind of the phone solution is any of that going to be moving the needle enough to change the overall story in terms of, you know, just what's happening with the subscriber growth trend

>> so there's definitely some interesting things going on at zoom in terms of new products you've seen zoom phone off to a really good start. they've announced a number of marquee wins with tens of thousands of seats very, very impressive results but i think the challenge is this company is pretty big, right? we're talking about a $4 billion revenue base, whennew products are just starting off, almost no matter how successful they are it just gets really hard to move the needle on a company that big. we think zoom phone, while it is growing much faster than the overall growth rate of the company, we still think it's less than 5% of the total company,o it just gets tough for those new products to move the needle. >> and i know you cover docu-sign, whicheemed to be in a similar category, in fact the stock charts with zoom, different magnitudesith the exact same shape and people seem to trade them at pure, stay at

me, work from home type plays and how sensitive willhey be in terms of the percentage of people going back to the office and intensive usage of work from home type solutions? i mean there's some school of thought that says nobody is going to cancel a zoom subscription just because people e working three or four days a week in the office >> yeah, so i would say that despite the similar stock charts, that docu-sign is in a different mp than zoom i think as the world reopens and obviously kid goes back to school and businesses return to in person actity, you know, there is more risk, thathere is some elevated churn among zoom licenses and i think the increased demand level that they saw last year, essentially pulled forward, a ton of future growth i thinif you look at docu-sign, don't know about you, but i don't look forward to signing paper-based agreements ever again, right? i think that future is here to ay we're not going back to paper. where we maye going back to in

person meetings. analyst day essentially t recent committed to growing at above covid levels, or above pre-covid levels for the next the to four years, so i thinkhere's just more sustainable growth drivers at docu-sign, you know, they like zoom are kind of the leader in the category, but i just think there are so many paper-based inefficient processes, that can be digitized over the next several years, as organizations pursue broader digital transformati >> yes, fair enough. makes sense. and i ow, i think do you have a buy on docu-sign thank you very much. >> absolutely. thanks for having me. take a look at futures this morning. deite the chop of the last few days dow is actually up seven of eight and the small moves of the last sessions has us at the we're back in a minutey 10

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jbs expecting most of the plants to function normally today following a cyber attack which temporarily hobbled the operation. >> david, we saw those operations really hobbled yesterday, down 22% in terms of cattle production versus a week ago, so you can see the immediate impact the cyber attack had, but the ceo of the companis saying that things are going to get back to normal. here's the statement from last night, referring to getting back up and running today the o saying, given the progress our i.t. professionals and plant teams have made in the last 24 hours, the vasmajority of our beef, pork, poultry and prepared food plants will be operational tomorrow that is today.

wednesda who's behind this? well, a source confirms to me this morning, that the group behind this hackis called r. evil, a well-known russian-linked hacking operation. here's what we know about them they hacked the apple supplier quanta computer a few weeks back and demand a $50 million ransom in that case and made up of native russian speakers and posted their stolen documents on the dark web site that they call "happy blog" so they have something of a dark sense of humor about all of this. and law enforcement and intention know a lot about people who are in groons like this this is video released by the national crime agency in britain. these are alleged members of another hacking collective called evil corps, you can see them doing doughnuts in lamborghinis and audis in moscow this is how these hackers are spending their ill-gotten games and this is what happens when american companies are sending

ransom payments to the hacking groups in russia, evil corps, doing doughnuts in moscow in 2019, video released by the british national crime agency that said that this particular hacking group was an enormous threat to the united kingdom so we see some links between the criminal under world and the russian government, but it's not at all clear exactly to what extend vladimir putin controls these people, if he does, or if he's just allowing them tacitly to operate inside his borders without prosecution. therefore, you know, messing with the west, in general terms, they're hitting our food supply, our fuel supplies, we've seen over the past couple of weeks and all of that will be grist for the mills for vladimir putin and joe biden at the summit in geneva coming up later this month. a lot to talk about at that meeting, carl. >> indeed. this is quickly rising to the top of the agenda. and so many ways and we appreciate your coverage of course, all over it as usual on the jbs story

we'll take a break here and get the opening bell in just under five minutes don't go anywhere.

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keep your eye on etsy today, the company bung another companfor $1.6 it was interesting to listen to josh silverman talking not about the e-commerce market, it's the recommerce market where things are sold secondhand growing at huge clip and i guess a huge draw for younger consumers >> i was just talking over here, i'm a household with two power hoosiers at home, and it is all, you know, pre-owned stuff, thrifted, virtual thft shop and it's individual to individualand what's interesting is when posh mark nt public not that long ago. which is, you know, somewhat similar, but more branded stuff, newer stuff, my teenaged daughters were like no, that's for the old people that's for milleials and so this ishat sort of inroads into the current moment

of wanting, yoknow, vintage stuff, somody else's, you know, the stuff from somebody else's closet, small ticket, interesting bid by etsy though because it ds have that feel of like individual sellers is really the theme, and they build their own brands >> interesting, that stock, largely cash for this deal >> yes. >> paying over 20 times revenue, sometimes you thk it is the stock. >> cash is free right w, too. >> that's true that's true. no doubt cash is not costing you a lot at this point that's a good point. >> guys, there's the opening bell, obviously breadth at the oping here, interesting, mike, we haven't had a chance to circle back on the first hour of trading yesterday, where dow popped 300, but i guess is that new money that was just short-lived? >> it was inresting, it was new month. i think it had something to do with the fact that overseas marks were open on monday, all up and a little bit of a catch-up at the open

just a gap to maybe account for that and what's interesting is it's been a pattern i just saw some stats sayi over the last few day, the market has closed near its low, kind of the low end of the daily range, very narrow range and we're sitting here pretty much at all time highs within a percent of it. it is a very unusual hovering act that the indexes are doing happening through a lot of t rotation some of the smaller market cap sectors like energy up a lot and they have momentum, and yet the bigger market cap stuff isn't moving that much now that seems to be why we're in this little bit of a pause mode at the moment. >> so energy and finanals, sort of powering the broader market >> on net, they have, yes. and i mean materials has been an amazing momentum story, too. but it really small. so we're talking chemicals and metals and things like that, and even that has taken a little bit of a rest. it is hard to get clear onhat the thematic direction is necessarily, sector-wise it is still value doing better

than growth, but growth is balanced, and the ark funds bounce, and everyone says they're up at a level where you have to sell them because it is a bear market bounce, because that's why we're sort of caught in between a bit here, carl. >> a good point. and one exame, guys, is visa which for i guess a variety of reasons, is the number one dow component. it does reminde though the journal story in theaper today, david, literally titled, business travel is coming back talking to people who were anxious to get back on planes, we probably should have asked the zoom analysts about a moment ago, but that would obviously have huge implications if and when it happens. i know you've been a bit skeptical on that. >> they say business travel is coming back and they raise that question which i continue to raise, will it ever be back to what it was in 2019? and i think that is still an open question. there's nooubt, as we've been saying, of course, it is going to come back

many senior exutives want people back in the office. and that seems to be a slower than expected process. some are being a bit more strict about it i think even in fact on monday, you'reoing to have the likes of blackstone, goldman, and a number of the financial firms we know saying you're back, you got to be back, rry, no summer, from working from the hamptons or wherever you might be, but others are being a lot more lenient. when it comes to getting outn the road, no doubt if your competitor is going to see a client, you're going to see a client but i still have that question, i brought up yesrday, of cause course, the idea of road shows, a zoom-based function now. but as well, internally, do you really make the trip to se people that you might not, that u might have previously, maybe it's not as much, so without a doubt, business travel cing back, and will come back, but will it ever be where it was in 2019 or how many years will it be before we see that >> that obviously is the question a road show is, you know, it's so easy to do virtually.

and you know, you can read the prospectus and get a pitch deck but if you're talking to a client and trying to figure out strategic stuff and trying to win a deal, that's probably a different equation. >> right and/or there is a deal involved and/or any number of them, in my case, lots of tequila. that's harder to do. it's harder to do. >> harder to do virtually. >> people have done it and doing it now for 15 months but i think they'd prefer to be in person drinking their tequila with each other. >> yes and we will get there in the coming days as well. goldman's got a note, they have this reopening index, they've are h- -- they've had it for several quarters now, a barometer from one to ten, describing where the economy has been in terms of a reopening, been at a six for a long time, several weeks and finally went to a seven here and we believe corporate america will return to the office over the coming six months they've got bullish notes here

on office reits but notes like this have been colored by the fact that management at goldman has been so vocal about bringing people back. >> they have that is true what's interesting as well, though, is there's a lot of sistance there's still resistance to people coming back full time and an expectation on the part of many employees that they will be able to work three days a week in the office, perhaps as much as four, but there will be more flexibility, and i think we know that now now, the financial companies than many others becausee know their management quite well, and some stricter than others but perhaps overall, stricter than many other kocorporations and mn other businesses where they don't feel the need to have everybody in the office all the time and perhaps there isn't quite as much structure, or i should say emphasis on culture >> exactly i was going to say that. a company that really does kind of cultivate this sense that it is a distinct culture, also where there's a p&l, you're

allocating credit for various kind of revenue that comes in, it is a pretty intricate computation, and maybe it is easier to do in person but there are surveys out there that said a huge percentage of especially younger workers say they would consider changing jobs and leaving a company that said they couldn't work from home for the most part. >> yes, that's true. i mean all the cultural issues of onboarding, and mentorship, it's been, it's definitely cloudy, but to david's point, it does appear that we're going to see, we would expect to see a stair-step in june and then hopefully another stair-step later in september, david. i think that's sort of where most people's heads are, and by the wa subway ridership in new york, s been lagging, all sorts of other metrics it does show some incrental improvement. but in order to get midtow working, you got to get people back on the train. >> and the other thing, in all of these different realtime monitors of going ck to the

office, or intentions, to go back to normal, what's lagging is movie theater attendance. i mean the numr of people that say, i good without going back, is actually still pretty high so we can, you know, bring that right back around. >> there we go. >> it is almost seven minutes into trading, we haven't even looked at amc which is up about 20%. they are going to be very focused, carl, i think on f-9, not to be, but it is a universal movie, and that has come out, that is coming out a few weeks from now and that is going to be globally, it is a very important event for the movie-going public and really seeing whether they're willing to come back given the strength of this franchise, so amc itself as well, i would expect, will be very focused on that particular date, just to see how many people it can get back in seats. >> our parent company of course has a couple of big things riding on the summer one of course is movie distribution there was a headline out of

reuters today, david, in japan, there is further resistance to having the games, they're reporting on some workers quitting in terms of volunteer work, to host the games, but we own the u.s. media rights and clearly comcast is hoping that even with the situation regarding health in japan, that they can somehow hold these games in a safe and effective way. >> certainly hope so and expect that will be the case but you're right, it is a very important, it's a very important opportunity for nbc, and all of its components i'm not sure we will be eric but viewership you would expect would be quite high even though there will be very few people actually watching in person, carl. >> comcast shares, for their part, down about a half a percent. they got hit after the announcement of the at&t discovery deal, or i should say the warner media discovery deal. now, called warner brothers discovery. that new name.

but it did get hit on the prospect that at&t frankly will be more competitive. there's a look at the new logo that at&t will be more competitive, mike, and the wireless business overall, and comcast shares, they recovered somewhat and hovering around this level of recent trading >> and i guess just also that the instinctive like, you know, is it going to move more chess pieces is somebody going to make a bid for something? but the at&t competitive issue is one that got lost. >> it is important that people always wonder, as given the history of the company, will comcast try to compete and it says it doesn't seem to be likely. mike cavanaugh in the presentation last week, jpmorgan's investment conference, indicated that m&a is not something near term at least that people should be thinking that the company is going to pursue. but longer term, we are going to continue to see it but the name that comes up most often right now with the most questions is viacom. there were some reports yesterday, you know, some of the parts, could they actually sell paramount, given the mgm

valuation, who knows, but there is, carl, that one is certainly the name that most people in media at least talk about, old media, talk about most often in terms of the future direction and the decisions that must be made to compete with the far larger companies at this point. >> yes, and of course, don't forget amazon and mgm. amazon not moving a whole lot this morning, guys although there were a couple of other news items regarding the company. one is that they're going to stop testing their employees for marijuana use and a blog post last night saying they will get behind efforts to legalize marijuana at the federal level which i thought was interesting, david. and along with i guess an official announcement of prime day, and we know how material that can be to the quarter >> yes, that's an important day. and we'll all get ready for our various bargains that will be available. marijuana testing overall, you need as many workers as can possibly get that is not something that is typically taking place, i don't think, amongst many employers

any longer, i can't speak specifically about it but i know there were plenty that were unfortunately in a position where they could not employ somebody who tested positive that's not happening anymore especially with legalization >> it gets pretty dicey, depending on what state you're in, it's legal. >> but it's interesting that amazon will actually lend its support to legalization fully. which we'll still waiting for. we, being the industry, and certainly people who follow cannabis closely, of course, in terms of federal legalization. which is yet to happen, despite the fact that, carl, where are we in states 17, something like that? >> i think we're about 15. >> i think 15 is the last number i saw. and clearly, companies are trying to position, you saw martha stewart, with joe, becky and andrew, last week, i think it is, is she with canopy, if i'm not mistaken, but everybody's trying to get in place for some kind of move at the federal level but i would argue, mike, the street is probably net skeptical that that happens in the near term even with shume ner the majority >> yes, for sure i don't think it's really priced

in i don't think it's imminent. it just seems like things are stacked up in front of congress. and it doesn't seem like it's got that clear of a path, just based on the breakdown of the senate so yes, it's basically, the stocks are basically trading on a state by state, and decriminalization efforts, things like that >> yes, so again, chop continues. this is actually going to be the tenth day of alternating gains and losses for the nasdaq. although we have been making eventual, slow progress, to the upside let's get to rick santelli, this morning. hey, rick. >> good morning, carl. yes, the equity markets, you know, you blur your eye, darn close to historic hise really for the most part it has been that way for a while. on the other hand, interest rates are reflecting more than just a barn burner type economy. and loaded with inflation. as you look at the two-day chart. we're drifting lower in yield. higher in price. therefore, there may be some issues there on the horizon that

the treasury market is paying attention to not so much all the stimulus but maybe the debt where it was sourced from or the $6 trillion budget where the last six years averaged less than 2% gdp growth on the grand 12-year projections. all of this may be in the treasury complex but one thing for sure, if we monitor something like inflation through the break-evens of 10-year, we need a ryan between nominal 10-year yields and the tips yields and you can see the chart there. it starts on january 1, 2020 i will label that pre-covid, okay so you see that now we're 247, it was at 180 pre-covid and the high is 2.57 the long and the short of it is that inflation has ramped up a bit as evidenced by this metric and it hasn't come down very much now, if we look at something like lumber prices, because they figure so prominently in things like the pricing of homes, let's

also start pre-covid, january 1st, 2020, and let's take that first metric out to the highs of the lumber that were may 7th and you can see that little box there that was up 315% on the highs. now, if we look at where it is today, and open the chart up, well, yesterday, it closed at 212% higher than january 1st, 2020, labeled as pre-covid the point there is yes, we've made some nice progress, but we're still over 200% higher than where we started so if you're trying to handicap how interest rates are going to affect the economy, and inflation, even though the picture might have come down a little from the worst inflation levels, post-covid, we're still definitely significantly higher than where we started. carl, back to you. >> rick, thank you very much rick santelli. when we come back, speaking of rates, bank stocks have tripled the performance of the s&p this year.

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bank stocks pulling back a day after what has been a recent surge. the kbw bank index touched a yearly high yesterday up 75% over the last 12 months. let's bring in tom micaud, you have been positive, you've been right, i have pointed out that a number of times. how much of your current case is predicated on the yield curve conditioning to steepen. >> first of all, good morning and great to be here again we got here because the credit impairment story did not happen and we got here for precisely what you just said is that we have a steeper yield curve. we have higher rates, and that's helped the bank stocks rebound when you look at the bank stocks today, we are only in line with historical averages and where they were pre-covid. even though the stocks that have had the big move that you just

mentioned, they're not at egregious or highly-valued levels so our opinion is that what you need to have happen now is, you'll have the bank earnings need to accelerate as economic activity continues to build. and we think that the bank stocks are a good place to be if in nation concerns continue to grow and we do get higher rates or a steeper curve. >> all right >> and you do expect economic activity to increase, i would assume, and then you therefore expect it to be reflected in the results that we're going to see from the banks >> that's right. so we've had really, there hasn't been a lot of revenue growth outside of the big investment banks, with regards to core banking activity but we're looking for the early signs. so we recently have had several bank conferences, in some of the states where they reopened earlier. so for example, we just did a texas virtual field trip and the texas banks are talking about accelerating growth. we're hearing about that in parts of the southeast

we think that now, that as all of these states have opened up, you are going to see loan growth and economic activity continue to build, and we think that's going to be a positive for bank earnings, bank earnings going forward. and so what we have in our models is we have a re-emergence of loan growth in the fourth i e that's the key driver for bank stocks because i think it's a matter of when, not if, you will see this loan growth begin to pick up and what's also different this time is that bank balance sheets have a record amount of liquidity on them. so when rates do start to go up, we expect net interest margins to widen and we think that's going to have a really bullish impact on earnings per share >> a somewhat bigger picture if we look at how the various fintech payment companies are valued in the stock market, square and paypal together, not much smaller than jpmorgan market capwise right now what's implicit in terms of how

much of the bank's traditional business is eaten. what are you doing to try to forestall that position against it >> i think this is going to be one of the most exciting stories to talk about. this story was in trend precovid covid accelerated it all i think the gap between the winners and losers in banking is going to widen you've heard me say it before. i think some of the best fintech companies in the world are bank of america and jpmorgan for example. very sophisticated in other cases we see other bangs adopting many of the digital approaches they're working hard on their expense base and using less branches to make themselves more efficient. so i think that every bank is going to have to figure out where they fit into this, andbacks that don't think they can get there alone, that's another reason for consolidation. and we've seen an acceleration of consolidation recently in the

banking industry, and part of the reason is we've got a low revenue growth environment right now even though we think it's going to change, and banks know they need to stand up more in terms of digital investment, because that is the future so we research all those companies you mentioned. i don't think that technology, that the end story is going to be it disrupted and took away from the bank industry i think it's going to be some banking industry members decided to join with these fintech companies, and then they both jointly succeeded and some banks that don't participate have a chance of being left behind, in my opinion >> tom, always appreciate hearing that opinion i appreciate you joining us as well thank you. terrific great. thank you. just about 20 minutes into the trading day. we have energy and information technology leading although, we're hanging in there turning around the 4200 number

about ten points above we're backn mont ia me with a bang. energy and change came to every part of our universe. seismic or small it continues. (♪ ♪) change is all around us. (♪ ♪) shaped by technology and human ingenuity. we can make it work for you, and your business. let there be change. accenture.

i have an old saying that i learned years ago. either you make dust, buy the

stock,at dust, short it. right now or get out of the away we have a conference tomorrow. th annual meeting. we have mark us, redding, and other theater chains looking so we can look at companies and see what they think about the revenues at the box office that's it. >> that's squawk this morning talking about how you trade around amc, mike which i guess is now, i don't know, wh a markecap above game stop, is it the new meme >> for the moment. there's a similar theme where game stop, a lot of insiders did plenty of selling before the ramp now amc, some insiders feeling like the stock has gone r enough, taken on something of a loif of its own and now offering what's a large popcorn worth, $10? that's your bonus for being a

shareholder on the first of the summer >> yeah. we'll talk about how they're leaning into the reddit community. we'll talk about adam aaron working to whip up a new investor base when we come back. ke is going to stick around for another hour don't go away. 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.

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good morning welcome to anoer hour of squawk on the street morgan paren has the morning off. morning talk right above 4200 on thes&p sector is street as there's issues about value versus growth, inflation, and scarcity on all sorts of supply chains, mike >> yeah. we're 30 minutes into the trading session ght now. here's what we're watching three stocks on the move starting with zoom, shares higher in early tring. after reporting blowout earnings, but warning of a coming slowdown in the company more on the quarter in just a moment plus tesla, a new report claiming the sec told the company that musk's use of twitter had twice violated a court ordered policy requiring

his tweets to be preapproved by tesla's lawyer etsy, a billion dollar plus deal to buy dpop, the stock getting a small pop today, but it's negative on the year >> over 20 billion market cap. another mover. amc. once again following yesterday's 20% jump, you can see wow, that's a new high right there. up 30% the company announcing amc investor connect that's a new initiative to put the company in direct communication with it shareholder base which is largely comprised of individuals as opposed to institutions investors who sign up in the coming weeks and today get a free large popcorn usable this summer if you, in fact, attend a movie at an amc theater. we have more on amc and a look at the ceo behind what is this madness some say his name is adam aaron

your name is robert frank. over to you. >> good morning. adam aaron adding more than $100 million to his net worth and amc executives cashing out of millions of dollars in stock as the insane rally rolls on aaron has about 4.2 million shares those are either owned or granted. the shares are worth about $8 million at the start of the year as of this morning they're worth about 160 million. so his gains throughout this now totaling more than $150 million. as those shares are up 1700% since the start of this rally. he's also earned last year about $20 million in compensation. the year before that about 10 million. he's doing well. he has not sold any shares now, in march he did give shares now valued at about $20 million to his two sons. but other executives of the company have been selling to the tune of more than $4 million

worth sin march. the top seller according to a se c is the chief content officer she's sold more than a million dollars since march. the general counsel just under a million dollars, and the cmo as you mentioned earlier this morning selling 15,000 shares for a gain just yesterday of $400,000 amc not responding to requests for any comment on the sales, but guys, incredible moves, incredible wealth creation for some of these shareholders the executives and adam aaron. yeah it's quite a story and it keeps going. there are a few of us who believe when this began months ago we would still be talking about it and we'd be watching one of the stocks in question hitting a new high it started with game stop. a lot of insider selling in the early days many who sold choosing to do so at a far lower price than they might have been able to get. that's the case here

the control shareholder not that long ago, they still owned a lot of shares. they sold out only less than a couple weeks ago i think their average price was 14 >> yeah. and you look at mudrick, some say the profit that mudrick made yesterday was $40 million. this is really a brand new paradigm if you accept the premise that these stocks are now detached from fundamentals and driven by retail investors and social media and that ceo and executive compensation is tied to stock, adam aaron has figured out his future, his incentive is now incentivizing the retail investors to stick around and follow his plan and to keep buying the stock i don't know how many other companies this will apply to or how long it will go on, but this is a brand new incentive structure, a whole new way to manage shareholders and a whole new way for executives like him to create wealth we'll see, again, how long it lasts. >> yeah.

robert, you can imagine the sort of the psychological swing that insiders had i mean, last year was existential crisis movie theaters were closed we didn't know if the company could stay out of bankruptcy and maybe the 8 million at the time worked up shares given to the ceo was like you carried us through it, raise capital and now we're surviving. it's not as if the company said you deserve 160 million. we're marking his grant to crazy right now, and it becomes 160 on paper. >> right and to your point about the emotional roller coaster, think about the executives you can't blame them from a financial planning point of view to take a large number of their shares and some cases significant percentages of their share ownership off the table. it doesn't necessarily mean they don't believe in the future of the company. it means it would be irresponsible to not sell at some of the levels the cmo selling in the 26, $27 range

yesterday i'm sure he's saying maybe i should have sold today, but, again, it's hard to think this is not a good time to sell given all you poured into this company of your life for many of these executives >> what happens -- he's got to want to monetize some of this. he gave some of his money to his kids some of his shares to his kids, but he's got to, and the question picture if he saturdays selling, does that have an impact or does none of it matter yesterday there was a distressed investor buy 8 million shares and sell them more or less in the same day that didn't impact anybody you know, i don't know maybe adam aaron should try to sell stock why not? >> it's a great point. my initial reaction would be yes, if he sold anything that would be a signal in these investors would run for the hills. if you look at cost corp., another meme stock that makes headphones that family early on and throughout this has been selling shares and it doesn't matter.

that stock price still goes up those reddit shareholders still believe in the company they want to stick it to the man or the shorts. and so you're right, david i don't know that it would matter if adam sold shares >> they certainly look past the kcmo last night. it's no donger diamond hands it's upopcorn hands as we watch shares of amc today. thanks, robert frank zoom shares warning of a coming slowdown. joining us today jim's founding manager partner of made adventures he named the video platform zoom it's great to have you with us >> i'm excited to talk about zoom one of my favorite companies, and help maybe educate your -- the public about some of the amazing things that were announced yesterday by erik.

>> so i'm curious. there was a lot of focus on the revenue beat about 5% this time. historically last year they have beaten on revenue by 60%, 30%, 12% and now 5 %. how much of a concern is that? >> look, first i want to congratulate erik and the zoom team for exceeding the high end of expectations. much lower turn than they potentially expected and raising their guidance it's incredible. quarter after quarter. but the way -- the way i look at it as an early investor, we're seed investors we're much earlier in the private sector i think i might have a little bit of a different insight into the future potential growth of this business which i think is just not deeply understood by the analysts frankly and the public today so if i could, i'd love to talk a bit about the new announcement that erik said is his number one priority, the zoom platform or zoom os. it's a huge deal that people are not understanding.

and i think maybe because it's something that i do for a living, that i see the potential massive huge multibillion dollar opportunities there that was kind of people just kind of brushing over. in particular, when erik talked about the zoom os and zoom platform, he mentioned three exciting opportunities that are going to be massive for zoom the zoom apps, the new app store. zoom events and zoom video sdk i'd love to break those down a little bit to educate the -- your viewers on what these are look, every ten or 20 years there's a massive opportunity in the private sector where a new platform opens it enables us as early investors to bring to the world new billion dollar ideas built on other platforms whether that's the iphone or the google phone or facebook, or saleforce, opening a platform zoom is the next one what happens when companies like

zoom open the platform, it enables folks like us to fund companies to build billion dollar businesses on top of zoom why is that important? first, it makes zoom stickier. right? i mean, the reason why you run out to buy the phones in part is because the great apps that are on there we all do that same thing is going to happen with zoom. what's really interesting and exciting is it's going to be a massive opportunity for zoom people -- there are a lot of people using zoom for free now thanks to the pandemic like all of us, this was a tough year for all of us and so one of the things that's going to happen is there are going to be thousands of new products built on top of zoom that people are going to start paying zoom for to get access to not even to mention the potential revenue streams like the typical app stores a huge opportunity by the way, just to say, we put our money where our mouth is >> as a quick -- to tie it back

to what they're going to be -- i mean, what are we talking about that's relevant, and are we talking also about potentially apps or other functionality that salesforce and microsoft and everybody else is trying to provide through their platforms? >> yeah. by the way, it's going to happen really soon. and look, it's taken other companies like apple and google many years to build that massive revenue stream there it's not going to happen it's going to happen much quicker for zoom because there's 400 million people using zoom and zoom is going to open the platform for the companies and we're already seeing hundreds and thousands of developers coming in to build on the zoom platform. it's going to happen very quickly. and we've invested in ten companies. and just to give you a sense of how powerful of an idea this is, i'll give you a few examples one of them is called pledge they're going to be enabling you to do fundraisers on zoom. they're going to be game-changing for the nonprofits

that don't have to do in person events do it on zoom. push a button, pledge, and you're connected to zoom a software layer to enable students and teachers to do teaching in zoom you have to remember zoom wasn't built for that it was built for fortune 100 business enterprise businesses, but with the open platform it will enable open opportunities >> jim, you got to give us a chance to ask questions here >> sure. an >> i applaud your enthusiasm investors, perhaps, and even management at this point, not as enthusiastic as they might have been expected to be. i mean, are they down playing the opportunity here or is it going to be more of a show-me story in terms of the things you're talking about >> i thinks the the point. they don't understand. they don't see the vision yet. i'mtrying to give you and viewers a little bit of an insight into the future.

maybe it's just luckily this is what i do for a living i see it zoom events is going to be a massive opportunity. we go to a conference every year, 1,000 people on zoom webinar last year. it was great zoom events is now happening it's going to make the experience so much better. i'm happy to pay zoom hundreds or thousands of dollars to enable me to save tens of thousands of dollars on live events there's thousands of companies doing events on zoom that's going to be a new revenue stream that's part of the platform. zoom video sdk is important to understand there's already almost $100 billion of public value with companies doing video sdk. there are companies that enable businesses to build video conferences into their product zoom is going to open up the platform and give access to any business to get access to zoom video at a lower cost, higher quality. we see companies shifting over we have two companies using the zoom sdk, and on top of that zoom announced an app fund to support all this

that alone is a massive opportunity. i think the other thing -- >> i can't have you -- you've gone through so many, jim. we got to pay our bills. i appreciate it. we look forward to having you become soon. >> thank you so much >> nice to see you >> a quick break here's a look at the road map for the rest of the hour including oil. it touched the highest level in two years. we're going to take a closer look at that rally in energy plus amc might be surging but goldman taking down two other theater chains more on that call later snrchlt the ceo of bed bath and beyond on the labels, and reopening trade. "squawk on the street" is coming right back esg is responsible investing. who's responsible for building esg into your investments?

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marathon digital holdings set to transition to 70% carbon neutral digital mining ing stren sustainability bitcoin mining council member joins us to talk about the ongoing issue between block chain, crypto and esg. good to see you. fred, thanks for the time.

>> good morning. how are you? >> good. the goal here is interesting are we on the cusp of having answers to those who believe roadblock to adoption. >> i think investors want esg. the industry wants it. bitcoin miners really are the energy purchasers of last resort for renewables, and so we're the perfect customer for renewable energy sources if you look at our announcement from last week, sshlly the next 250 megawatts of power we're going to use for digital mining will be carbon neutral and we're going to move the rest of our fleet to carbon neutral status over the course of the next year so we're optimistic about miners being able to move to a fully carbon neutral footprint that being said, i think there's a lot of education that has to happen regarding how mining operates, what type of power we use, how we use it and how we benefit the renewable energy

marketplace. that's something the mining council is going to focus on it's a voluntary organization of miners who really are open for anybody in the mining industry to join. we're focussed on educating, providing transparency about what's going on in the mining industry we're excited about that we're also very excited about going to a more carbon footprint going forward, neutral >> how do you get to 70% or even beyond what modes of energy change can you describe how that works? >> yeah. so through power purchase agreements, you contract with the grid operators, for example, power providers for a mix of wind, solar, potentially nuclear, et cetera you can also put your mining operation directly as base load power on the grounds of a renewable emergency plant. you think about the solar energy world, it operates from 10:00 in the morning until 2:00 afternoon. wind tends to be afternoon we're waiting for utility grade

energy storage battery systems that can scale and hold hundreds of megawatts of electricity. when that's available, you'll see bitcoin mining become more sustainable. we'll be able to operate solely on solar backed by battery power. >> how bitcoin is mined and created based on just the fire power of computing capacity at lowest cost to try and build this network, whatever the network is used for, that's how it's built how can you decide, prance, not to sort of purchase the cheapest power where it's available >> well, it's a function of many things for one thing, you feed reliable sources of power cheap power typically isn't reliable it has a tendency of going on and off. the bitcoin mining business is most efficient when you can run your miners 24 /7. that's why energy storage is critical if you're going to operate on fully renewable sources.

that being said, everybody in the industry is really incentivize around optimizing quality of power we want to make as much as possible the bitcoin that we mine as green as possible. we understand people's perspectives on the energy we consume. however, mine progress vieds a very important function to the network which is a validation and verification of blocks what makes the network an indelible record we'll continue to see miners pushing for more efficient mining systems that consume less power to lower the energy footprint, tera hash is how we measure mining power everybody is chasing an efficiency curve or that cost and power consumption is going down as power consumption goes down in miner hardware, the power consumption that we need to generate bitcoin goes down as well i think you're going to see the miners continually investing in new hardware that's more efficient and continually trying to optimize around power sources

that are as renewable as possible >> quickly on musk, because he is to influential, his voice on this can you describe what discussions with him have been like and maybe how long he felt this sustainability issue was worth addressing >> i wasn't on the call when elon musk addressed the founding members of the counsel i'm not going to comment on what was said or not. he did tweet he was supportive of the efforts and miners going green. he should be generally supportive of it it's in line with what tesla is doing around renewable energy. >> we'll watch this closely. thank you so much. appreciate it. fred >> thank you very much as we head to a break, watch shares of i max and cinemark

saying box office is reflected in the prices of both stocks and there are heightened risks to the recovery both those stocks dobown a 5%. we'll be right back. stay with us hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot.

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it is time for the etf spotlight. today taking a look at spdr oil and gas, ticker xop up better than 60% on the year this as opec plus sticks with the zig to return supply -- restrictions being lifted in part to the world. currently trading a few dollars below $70 a barrel steve is the ceo energy analyst joining us now steve, thanks for being with us this morning a huge question around all the energy stocks is they're up huge the xlp tripled from the low of

march of last year, yet, it's at about half the level it traded after three years ago or so. so how much of the trade is already complete in your mind given the fundamentals of the commodities in demand? >> thanks for having me. i think at the end of the day, oil has been somewhat of a laggard relative to other industrial metals and a lot of the other elements and cyclical demand associated with the reopening. i think what the market is telling you is we still have a latent demand. impact will come higher prices can drive the multiples of the sector higher the simple answer is yes, there is more to go, but the direction of oil still really determines a lot of these stocks but there has been some real structural change in this industry which is also helping i think confident in the outlook >> structural change for the better in what sense is it capital sdiscipline in?

where does it take you in the way of the stocks you prefer >> yeah. absolutely i think that there's a couple elements here. one is we saw a huge amount of consolidation obviously off the bottom so we saw a lot of high quality companies transact kind of strong companies get stronger. we have seen substantive changes in compensation. a lot of companies were paid to grow as you mentioned. i think that's instilled a little bit more confidence in what we call the guardrails around capital and how the companies will return capital to share shareholders there's no doubt that gains if we like in the sector, conocophilips, diamond back energy, all have clear value propositions of what higher oil price means for investors, and, again, unlike the past cycle, growing production is not part of that value proposition at the

current time >> do you think big picture you will have to accept lower peak valuations just because the market assumes that this is each cycle is going to be kind of weaker and it's in long-term decline or not >> i mean, i think that -- i mean, i guess one of the things we've really been clear about through this off the bottom of this sector is that we don't have much time for a conversation of what some of the longer secular demand issues for oil are in the context of still very, very lax ndemand let's get back to 100 million barrels of when we're back in the office and moving around and let's see the market rebalance then we can have a conversation about the longer term demand drivers. i think the way we like to think about it is how much free cash can i generate the next five years. i don't think anybody questioned the commodity will be with us for that time. in a lot of the instances, if

you take a reasonable oil price, you're getting 60% plus of the enterprise value back in terms of free cash and that lessens the pressure on the value. that's here to stay, to be honest >> yeah. i guess the cyclical up swing can carry things for a little while. appreciate it. >> thank you coming up after the break, don't miss a first on cnbc interview with the ceo of bed bath and beyond. stocks up almost 7 6 -- 6% today. we're back in two minutes. ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪

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welcome back here is your cnbc news update at this hour. the majority for democrats in the u.s. house of representatives remains intact this morning

state representative melanie stansbury easily defeated to win the seat australia's second largest city is extending the covid shutdown for a second week. melbourne is trying to contain a cluster of 60 active infections. so far only 2% of the population there is fully vaccinated. in paris it's been gray and cold the last few weeks. the arrival of 80 degree temperatures and gradually easing restrictions has many of the residents out and about in the sun. in las vegas there was no sun when the city fully reopened at midnight. but with all of those lights, it wasn't needed. after more than 400 days, all covid restrictions have been lifted and it looks like it was a bit of a party there good for the economy >> pent up demand for everything vegas offers thankssee how that plays out we're about an hour into the trading session. let's take a look at the biggest

leaders on the s&p 500 so far. energy really the dominant theme there. schlumberger leading the way and devin energy and invesco up 3% biggest laggards, retailers having a tough start l brands, tapestry and pvh penn national well. >> bed bath and beyond unveiling three new private brands this morning. let's get to courtney alongside the company's ceo. courtney >> thank you very much, david. mark, it's great to have you here with us this morning. as you launch more of these private label brands which you've talked about previously on cnbc. i gus if i'm a shareholder, my first question is how quickly can i see these higher margin products, sales of higher margin products flow through to earnings and ultimately the share price? >> good morning. i think as a shareholder, or an analyst or investor, what we're

seeing is a period of transition we're exiting the products it's like cleaning out the closet as my cmo says. and getting ready to put in the new irons. we're been cleansinging the assortment and bringing in new brands you see the bulk of e products now coming into stores the next couple months and really into that q 2 through q4 period, you'll see the benefits filtering through the to the bottom line. >> okay. great. so speaking of stores, i know re remodelling the stores is part of the transformation strategy as your former employer target, therwas a pretty marked difference in the sales of those redel stores brian covernel, the current ceo said they performed simply better is that what we can expect from bed bath and beyond? you'll see sales increase at the stores thaare remodelled >> yeah. absolutely we've set a strong bar for

conservative growth so we can beat out forecasts we're seeing early signs on that and also getting the right rern on invested capital early indicators are positive. we're starting that process and coming back at the q1 earnings and more in q2 and 3, sharing the positive outlets a great response from gross margin in the stores and sales speaking of the great response from customers, in general, retailers have be putting up pretty impressive results, and some pretty impressive comp sales. also very positive outlooks going forward for the rest of the year saying it's more than pent up demand ithe recovery we think the consumer is back and ready to spend are you in that camp as well i mean, is a pandemic reopening sort of the shot in the arm that retail really needed for the long run >> it seems so i mean, it's such a marked

change from last year when we were closed in our stores to now being open i think the idea of being together and freer and the post covid moment that we're not at yet is coming into people's sights as pent up demand for people to be outside and to go shopping we've seen that in our business, and we'll be sharing more of that in our q1 results positive signs arehere, yes. >> so obviously back to college is a big and important category for you this year. hofully for all the college students it eleclooks a lile mo normal than last year. what does that mean for bed bath and beyond and theopportunity that y have to sell to these college students will it be very different from what we saw last year? what are the expectations? >> well, for us i think it's a different ason and a huge pivot opportunity for us last year we were up 23% in our

back to college items which was terrific when there wasn't a back to college peri what we have this year is by the time peoe start shopping and they're beginning to look and fill the pinterest pages and preshop, they're going to find six new owned brands that feature great price counes and great quality and style for them to buy from that weren't there last year, and brands like are pivotal.tial that we love the opening price point. studentsced for college what we have now is three w brands in the next two month our table in the kitchen wear space is over 1100 items creating the authority in the kitchen area world sage, a world traveler kind of feel gez orientated and nothing says back to college like storage and organization. we have a new brand called squared away we'll be launching. i think it will meet the

customer's needs in quality, lue and assortment redelled stores, fantastic website, and think that consumer pent up demand get back to their lives. we're excited about the back to college period finally, you know there's been aot of headlines about the crush to secure inventory r even holiday at this point i'm wondering is it a race every retailer comes on the air and says yes, but we feel good about our own supply issues. i wonder what the shelves will look like at christmas >> yeah. look, we did a lot of preplanning, partilarly for our brand space. early receipts, high volume. there's some interruptions in key countries. you can'source with india and not have an impact based on what the country is going through we feel for them there's some fits and arts there. in general, we would say the same thing we feel good aboutur plans

we're working closely wi our national brand retailers to ensure we're forecasting the up sides and we'll have the imagery on the shelf >> keep us updated if that changes. mark, the ceof bed bath and beyond thank you for being with us today. as we head to a break, we're keeping an eye othe rebound in several of the ev related stocks many of these are more than 50% off the recent highs but outperformers in the past week or so. all of them up again today nikola and lordstown up double digits in ouabt a week more "squawk on the street" after a break.

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a top wall street strategists redistricts relief from the wild swings in june details on trading nation. more "squawk on the street" straight ahead as your broker, i've solved it.

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president biden announcing new steps to focus on access to home and small business ownerships this came in oklahoma marking the anniversary of the tulsa massacre big frank holland joins us from tulsa with more on the story frank? >> reporter: good morning, david. black people make up about 3% of the c-suite in financial compans nationally that's according to the latest data we talabout the biggest banks often called wall street the bankare becoming more diverse overall. t's look at jpmorgan the biggest by market cap with 13% black employees overall and 5% in senior management roles.

wells fargo with a controversy over the ceo saying the a limited pool of black talent we spoke with the chief human resource officer who says wall street can do more to retain the black professionals. >> you think about it as analogous to a funnel. we're able to bring talent one, but the industry suffered from the funnel being leaky we've got to be more deliberate in retaining the talent, and in my personal view, thers no more important lever in retaining talent than by giving them opportunities to grow and to stretch speaking of opportunities to grow and private equity, black people making up 1% to 2%, 3% of partner roles. another obstacle can often be culture. >> i also think that there's

this cultural piece in ensuring that when folks come to work at firms like mine, they feel like it is their firm and they can thrive and they can bring their full selveto the firm, because when that happens, again, speaking in the context of black folks, you know, this thing called black magic can really take root and take off and we can see folks realize their full potential. and, of course, in the year since the passing of george floyd, his death, many of the banks have made commitments to increase minority representation, especially black representati as the years follow we'll have to keep an eye on that. frank, it's interesting that you lk to morgan stanley about it because they've been under some pressure frocongress people and senators in recent days to improve their diversity numbers and even the data they'vgiven us, although it's a couple yea old, shows within the bank they need -- there is progress to be made still

>> yeah. i spoke to a chief human resources officer about that he said that they're working on it most of the big banks would admit they have work to do one of the things is that many of the biganks they're feeling competion from outside companies, tech. other people startg their own finance companies, wanting to bran away and part of that is i think that's something that i know for a fact morgan stanley says they're working on and the other big banks as well. >> frank, your work this week has been exemplary and it's a story that resonates across all kinds of new silos financial news, general news, you name it. coming up on tech check, the ceo of hpe is with us on the company's latest quarter it starts at 11:00 a.m. eastern time "squawk on the street" in the meantime will be right back.

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you need a breath mint. xfinity. it's a way better way to watch. welcome back to "squawk on the street." i'm christina. stocks are slightly higher today on another quiet morning outside of the meme stock mania from a sector perspective we are seeing slight weakness in materials if we look at the individual stock basis we're seeing some of

the worst performers, metal and mining stocks. that's primarily because they've been relative outperformers as of late. names like nucourt and freeport, are under pressure after double-digit gains in the past few months nucore has posted gains north of 100% so far this year. before today's slight pullback you can see on your screen right now. back over to you, carl all right. thank you very much. june is pride month and all month long we're going to be highlighting cnbc contributors, business leaders and our own cnbc anchors and reporters here chris dilila. >> i was working on a story recently and learned 42% of lbgtq youth seriously attempted committing suicide in the past year that statistic w shocking. one of the challenges we face is coming out and being accepted.

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aeg one of the world's leading sports and live entertainment companies announcing its fall concert lineup and two summer festivals, this is america reopening. dan is aeg's ceo and joins us now. dan, give us a quick check here on how it's all looking as we head into the summer is it a full reopening of a lot of your venues >> it is we're feeling so positive. we have highly effective vaccines, we have restrictions being lifted at our venues and we have the unprecedent deed mand that you've been talking about yerl in your show that all of those come together and it's a recipe for a strong recovery this summer leading into the fall and then early 2022 >> give me a sense on that demand when are people going to be showing up at an indoor venue all in person and filling a concert venue? >> we were encouraged when 80% off you are fans held on to our

tickets for postponed shows. we've gone on sale with our festivals, touring audiences and las vegas residencies. i saw you talking about vegas and their reopening. 30 festival dates in london in august and the u.s. in september, in las vegas we have our theater resorts world which opens in november, and we have residencies with celion dion, katy perry, carrie underwood and luke bryant and you asked about our touring artists in the fall we have kane brown and eric church hitting the road in september and early 2022 justin bieber and elton john. many more to follow. there's a pent up supplyo go with the pent up demand. >> tt said it has not been the easiest of 15 months you have been thrgh what have you had to do to make sure you had enough liquidity and could be in a position to fully reopen when the demand came back? >> yeah. there's no question our industry was not immune by any stretch of the imagination. our industry, we're in the mass gathering business

so we were largely shut down for the better part of 15 months luckily we have a tremendous portfolio of assets, i'm looking at a few on your screen with staples center in los angeles and the o 2. we were able to withstand the improve our venues and prepare for the reopening by giving the consumers that confidence that they need when the time is right for them to come back and for them to know that our venues are safe and that it's safe to come back and that the live music business is reopen again. >> dan, what's happening with pricing, ticket pricing, and things like that it seems when there's been restricted capacity at sports events and stuff, been able to really raise face value ticket pres, is that happening in concerts at some of your other venues >> when we see things come back there's a lot of supply in the market and the pent up demand. we're going to see pretty incredible and unprecedented levels of activity at our venues it's a great time to be in the music venue business that's for

sure i think we want to be careful when we look about this. we're in this for the long term and want to plan whether our season ticket members for our teams or whether our fans, you have a coachella image on your screen which we announced coming back yesterday, back in april of 2022, so you look at something like coachella we have a 20-year history and relationship with our fans so we want to be careful when it comes to the ticket pricing >> and in terms of coachella and managing the event, you know, dealing with whatever safety measures you might have to impose, how is that going to look is it different than what you've done in the past >> as we sit here today, the events look a little bit different. we have a laker game coming up this week and we're dealing with partial capacities and some restrictions that still exist at our venues in los angeles. a couple weeks in los angeles we have the broader reopening our restrictions will be lifted

on june 15th today on partial capacity events we're living with modifications and common sense health measures we're hoping in a couple weeks those restrictions by d large will fall away. >> yeah. and you know, obviously thin could change in the fall we all hope they don't perhaps expect they don't. what are your expectations and what is your abity to respond should the dynamic unfortunately change for the worse >> well, we work extremely closely on a daily basis with our public health officials in the state of california and county of los angeles and really all over the world so we will be able to adapt. our expectation and our planning, things have come and improved so much and even in the last month with vaccination rates rising and positivity rates falling, we expect fall to be open to fulls capacity. our seasons for the kings and the lakers and the clippers will be starting up at full capacity without restrictions we continue to monitor it closely in case we need to take other measures >> yeah. i was at not one of your venues

but madison square garden and it was awesome. >> a rocking crowd that's impressive. >> unfortunately we haven't been able to win too many another one tonight. dan, appreciate your time. thank you. >> thank you for having me. >> you're welcome. and that does it for uhere on "squawk on the street. "techcheck" starts right n ♪ good wednesday morning and welcome to "techcheck. i'm deirdre bosa with carl quintanilla and jon fortt. head this hour, direct messaging, hows the likes of adam, aaron and elon musk are embracing the retail investor. an earnings exclusive with hp ceo antonio neri joins us at the bof