a meme stock we will talk about this. up more than 3,000% so far this year definitely not what we expected. washington watch the white house and key republican talked about this yey both sides working to get an infrastructure deal done. plus, back to the office another major u.s. company revealing its post-pandemic work plans. way behind us. it's thursday, june 3rd. the third day of the rest of your lives "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin.

equity futures at this hour. you will see red arrows right now. moderate declines. dow futures indicated down 54 points s&p off 8. nasdaq down 30 this comes after a day of gains yesterday. modest advances yesterday. let's look right now at the "squawk stack. the 10-year fell below 1.6%. that is not a big deal, but we watch these closely. back up 1.36%. we will see if that has an impact on the bond market. keeping an eye on gold above $1,900 an ounce. wti was high yesterday 1.6 gain higher this morning. the highest since october of 2018 sugar.

17.93 cents a pound. if you have sugar with your coffee, you will pay more for that churchill downs. bob baffert suspended after betamethazone was found for the second time. and there is another story today. that is amc. shares up 3,000% so far this year nearly 200% so far this week yesterday, we talked about amc's ceo making another move to offer a discount of tickets and free popcorn. the stock this morning up close to 20% by the way, i think we explained yesterday, one reason he is doing that to connect with the retail investors so he can get them to vote in favor in the future of them being able to sell more shares to them which

would dilute them to create more cash for the company by the way -- >> you have to connect to the retail investors it is a different group every day. 745 million shares traded yesterday. >> we are now a little over 57 times peak evida you thought it was a secular decline before i feel the show should be over to some degree >> in is all-time high with the market cap of never even close to this before. almost $40 billion not quite. >> it is making a mockery of everythi everything all of this. alexis was tweeting at me. this is the first time people feel the market is not manip manipulated. >> tweet hing at you or about y?

>> he responded to something i was writing. >> was it confrontational? >> no, no, no. >> when he was on, he likes all this stuff >> he referenced this is the time people feel like the market is not manipulated they are the ones manipulating it it is not clear it is the retail investors that are quote/unquote manipulating the market. there are a lot of trading on top. >> trading or shorting >> a lot of people are trading on top and when you go back and look at the flows three weeks from now, you will figure out for better or worse, itis not necessarily the little guy has stuck it to the big guy. it is the big guy has stuck it to the little guy. >> a lot of zero interest. that is how the fire got started. maybe the institution guys are smart enough to pile on. all you have to do is talk about it

you see plenty of retail people are doing this i looked up meme you know, i don't -- i don't like the internet. i guess it's going to last i thought it was like the fax machine. look at the definition of meme culture or system of behavior that's passed from one individual to another by non genetic means or imitation it is just spreading like wildfire viral. why is there such a thing as a meme stock because there is such a thing, doesn't that tell you it has nothing to do -- what is bed, bath an bath & beyond have to do with amc? if the long-term case is not positive, why is it tripling the all-time high now? >> one group of people,

experienced investors and analysts saying this is crazy. >> you have to help people who don't understand >> no, they say i know and i don't care they say i'm playing this. this is a game that's what they are saying. they are trying to show the whole thing is a game. to me that's a sad outcome because -- unfortunately, long term if there was distrust in the marketplace to begin with, this underlines that. >> i would not take it further i want to talk about what the fed is going to do i want to take it one step further antid then tie it back druckenmiller. the budgets and biden administration is going to p politicize the fed to allow them to co-op in the latest budget, do you know what the highest yield is

in the budget? the highest it will get is 2.8 even when inflation is rolling through. the fed says we need you to keep the ten-year low >> the fed is not able to keep it that low. >> if they keep buying if they do some qe or some -- if they don't totally taper and get out of the market. >> that is not the only number in that budget >> i think the fed's to blame. to some degree stimulus is to blame. >> i think to a larger degree stimulus is to blame >> why blame now because the little guy is sticking it to the big hedge fund guys? >> the question is what happens? how does this end? if you see this play out before, somebody gets left holding the bag. >> someone said yesterday

fundamentals eventually take over gamestop is back to $300 it is close to it. where is it? it is holding up >> i might argue >> 282. >> i could come up with a rationale on gamestop if i wanted. >> netflix type thing. >> harder to do with amc >> what about bed, bath & beyond it is our place. they have grill scrapers that is not something you think. you squeeze them and water comes out. >> my question he is if you are gary gensler and you are watching this, you think you need a drink you have a problem it goes to the larger issue of the system is this an effort to blow up the system do you distrust the system there are larger implications. >> why isn't it buyer beware it is stimulus money they are at home they are not working they got this unemployment

check. they heare putting it on gamestp >> that's it >> i think that's a lazy explanation for it i don't believe it i need to say whenever i'm not serious. i do i don't need your twitter backlash i don't need it. i'm pulling for these guys maybe amc. the free popcorn that's worth $10 billion easy. what was the other thing they did? >> discounted tickets. >> how about decent movies is that part of the equation >> they're coming. >> are you making some >> no. "007." >> jeff bezos is going to screw up "007. it is not a commodity. they are worried yeah wow. >> have we spent too much time talking about amc?

we have three more hours sdphours. >> this is the issue being in studio >> the camera. oh, my gosh. 6:09 i thought it was before the show still. the fed will soon start selling corporate bonds and etfs it bought as the pandemic era lending vehicle. the fed says the move is unrelated to monetary policy who is the latest fed-head talking yesterday? >> harper. >> might be time is he coming in? >> i was looking to see what the twitter verse? >> do they know it is andrew r. sorkin >> it's all good a little masochistic

>> totally passive aggressive. in washington news, president biden and senators agreeing to speak again tomorrow as the two look to negotiate a infrastructure deal. president biden has been pushing a $1.7 trillion deal and the gop sent a counteroffer last week. it is more than the numbers at play there are issues of how you pay for things and what is infrastructure those are the big overwhelming issues by the way, the republicans are reclaiming money that was sent to other places. a lot more than just the big number gap we will see what happens tomorrow. in the meantime, other stocks to watch besides amc if you can believe it engine number one claiming a third seat on the exxon board. the firm has been targeting that oil giant and looking to reshuffle the board. shares of pvh ticking higher

the company behind calvin klein is expecting better numbers compared to the same time a year ago. and tesla recalling several hundred model 3 cars in china. they were produced in 2019 and they have a seatbelt industry or a tire related problem that could increase the risk of collision. the recall comes by tesla after increased scrutiny in the last several months interesting. they did a pseudo recall in the u.s. you saw notices go out >> you want the irs to get more money and suddenly the administration wants the irs to get more money suddenly it comes true i don't know if it is the chicken or the egg you have connections here is what i want you to do.

i want to give you advice to pass along to the administration do a deal. do a infrastructure deal at $1 trillion number one, it is harder to get what he wants with reconciliation he has to give up things for manchin and cimena anyway. if it is so close, why not pretend you are working with the republicans. then pull the rug out and say he is not living up to his inauguration speech. he can defang the argument. >> you can call the white house. >> i don't think he has the number. >> i don't have the number. >> isn't it 1414 >> there it is don't you think it is a good idea >> there is a problem of $700 billion cap. >> he will not get the 1.7

anyway >> you know what will happen they will break this down into two bills. a deal with the republicans on this portion of it they take the stuff they can't agree on and put it in a second bill and maybe that goes through budget reconciliation. the democrats we talked to all said they don't think it should be in the same bill. if you have to work that hard to get the caucus to agree, break it down into two bills >> if you have to give the concessions to manchin >> the question is can capito get ten senators to sign off on it >> there were six or seven now and they were not all there. >> toomey will go along. scaled down version of it. >> all right on the january 6th or 7th issue. coming up, we will talk more about meme names more of them

oil stock have quietly been big winners this year. top sector picks are coming. that's next. as we head to break, check out the s&p winners and losers here on "squawk box" at 6:14 a.m. >> announcer: this cnbc program is sponsored by truist wealth where meaningful relationships matter most.

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a news alert russia's finance minister says the country's national wealth fund will exit assets. the change is expected within a month. the futures this morning are pulling back a little bit. we saw yit down triple digits on the dow. nasdaq down 43 s&p down 13. we haven't talked about the hacking. now you can't get to nantucket the ferry system is screwed up the meat thing people are saying it is russia and it's totally putin people are saying. >> putin is allowing it. he is not cracking down on it. that needs to be the answer.

you have to go after the rogues operating from your nation >> $350 million or something last year. in crypto. >> more than that. that is the ones we know about >> you wonder why they are doing it we will have a guy on to talk about how to fix it. can we fix it? can we make the servers impenetrable >> regulating crypto >> no, no. because that is such an elegant system don't kill the messenger >> especially if you are hijacking the system >> people say it is a currency only true transactions that are accomplished in crypto are ran some a fabulous currency to use for ransom >> you like to be tied to a central authority that doesn't tell you what to do. >> sure. >> with that freedom comes other

things >> at the moment, it is not a currency a currency is used for transaction. >> it is so volatile. >> right >> you can have this conversation about a lot of things things require you to take responsibility for just because it gives you extra freedom doesn't mean it will be perfect. bad actors. >> you have to go after the bad ac actors we can't do that right now because they are shielded. >> if you are inventing a new tech tech technology, you would deal with ransoms. innovate to deal with these things you wouldn't try to build something that is bad for the environment. all of the things you try to solve for. >> elon musk is whining about bitcoin, but sending up rockets. is that worth it the carbon footprint from the

rocket headed to mars. that is worth it, but this is not? the lithium. 50 times the lithium. >> he would tell you that there is a threat of consistency as far as he is creating a multip multi multiplanatary system. he needs to get you off the planet because there will be so many problems. bezos wants everything else off the planet to live here in harmony. >> i don't understand the genetalia to people. >> you took the show to a whole another level. let's talk about the oil stocks as well energy is the best performing sector so far this year. oil majors, refiners all soaring and closing in on new highs. joining us to talk about what is working in the energy sector is

roger reid he is senior analyst at wells fargo. roger, the is this anything more than the gains we have seen in wti? watching it settle at new levels every day. the highest we have seen in a couple of years. >> good morning, becky the difference a year makes. >> that's right. >> yeah. it is good to see, but it also reflects a big sea change of the industry acting well beyond esg issues to focus on shale 3.0 which our analysts named at wells fargo. look at what has happened with the super majors dramatic changes in spending several slash dividends. focus on repaying debt overall trying to generate cash flow which before that was more about generating growth. >> what a difference a year makes. are you looking at the picks, any of them, as better buys now

than a year ago or do you still look at this with a little bit of concern because of the investment picture which changed since then you hear about new concerns about the pbig majors just abou every day. >> yeah. take those in order. obviously, hindsight is 2020 valuations is still pretty attractive by historical metric. the outlook for full recovery of demand from back to pre-covid levels is still in tact. we would argue that prices are maybe a little ahead of themselves at the moment, but we still think oil and 55 to 65 range makes sense long term. that certainly supports as i go back to the valuation side of it. >> roger, what about the idea

that shareholders themselves are telling companies they want them to invest in new and different things these are basically going to look like very different companies five to ten years from now? is that a good thing or bad thing? >> fair enough i would actually say you are not necessarily seeing shareholders ask for the companies to be completely different if you look specifically at the three members that wanted exxon, one is a former oil industry person one comes out of what was a refinery, but transitioning into a renewable fuels facility company, but not necessarily what i would call a quote lender or solar company when people think grain. the third is a guy who has experience in corporate level and government level and probably a nice bridge between the two areas that exxon typically has with an arm's

length at best relationship with i don't look at that as transformative as media headlines made it. it matters because exxon failed to generate returns. it doesn't translate into exxon as a different company in five or ten years. >> your favorite picks are hess and royal dutch shell and volero. >> sure. a company did cut the dif dent l dividend last april. the big deal there was $10 billion of additional cash flow to shareholders was suddenly available inside the company to reduce debt by the incremental amount with the recovery in oil prices and shell is doing good things to reduce debt to go back

to the bg acquisition they did in 2016. this has been hanging over them for a while. de-leverage has been happening for a while. you have a tremendous footprint in natural gas hess has been a top pick it has performed well in the space. expect it to tinacontinue again the story on hess is the development which is down in south america and the offshore there. we have not seen anything as good as that in my experience in 20 years in guyana the discoveries of production costs of development costs exxon is the operator there. then valero and refining we really like the overall set up coming from the covid issues and resurgence in driving and air travel coming.

valero is the purest of the large cap refiners that gives you the best leverage to that opportunity. >> roger, the consumers coming back people are driving some of these are near term. the little engine that could might get its third seat when do these things really have a -- already they are having an effect on capital raising and shareholder involvement with the companies. is it ten 10 years or 15 years i know you have seen the blue states in terms of powering the grid and try to not use natural gas. what should it be? should it be nuclear it can't be coal it can't be solar and wind right now. what do we do for the next five or ten years >> that is part of it. we written about this over the last several months.

what you are looking at is going from the energy density situation with oil and gas and foil fossil fuels uranium you could fit in there as well. if you look at the energy transition it is energy diffuse and energy dense. one thing you should consider is getting a lot of materials in place and constructing all of the things that need to be constructed merely to meet growth much less replace everything there will take a lot more dollars and more time than five to ten years. there is also the parts that are difficult to abate as they say in the business and some of that will not really ever change potentially. i think you should consider oil and gas is a substantial portion in transportation. it is also how you make plastics so much of the new stuff is plastic or using plastic you are actually going to get

from plastics and mining a big boost from oil demand in the next several years i can't speak to the above ground issue that is political it may have impact on growth again, impacting growth. not necessarily the base level of the demand. that just takes a long time. >> roger, thank you for your time this morning. good talking to you. >> thank you see ya'. >> did you see your bitcoin comments or this russian thing something happened bitcoin all of a sudden. up $2,000 all of a sudden. >> $1,600. >> probably on russia saying they are de-dollaring. why not use bitcoin? they are using it with all the ransomware they need to have it on the balance sheet. >> to capitalize >> exactly all of a sudden it just took off. i think based on that russia

story or maybe your comments. >> that or a couple of american companies had to put some on their balance sheet to deal with the ransomware i'm hearing about companies looking into it anecdotally for that reason. not joking about it. they want to hold it as a treasury for the moment we have to have this around sdp >> prepare for the ransomware. >> instead of securing your system >> cheaper. coming up when we return, apple has a plan to bring workers back ttho e office we have details when "squawk box" returns. >> announcer: what's working is sponsored by comcast business. bounce forward by going to comcast.com. you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity

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welcome back to "squawk box. shares of amc hitting an a

all-time high. the surge fueled by retail investors who account for 80% of the retail base. joining us now is jj at tdameritrade also -- i apologize. the reporter at wall street journal. jj, let's talk with you. just to understand how much of this you think is the retail trading base and how much you think is the professional institutional trading base riding the wave or trying to take advantage of the retailers? >> this is tough to say which one is which, andrew obviously they have been popular with our clients overall i look at what we saw in amc you and i talked about this about a week and a half ago.

amc particularly traded significantly more particularly what is interesting to me is trading picked up on thursday and friday. particularly with a buying bias. tuesday was a little bit lighter and yesterday, of course, was just absolutely insane blackberry is another one. blackberry yesterday traded 20 times what it traded in mid-may in terms of the stock buyer. ten times of options volume. there is definitely interest. the interesting thing is with all of the stocks in the meme stocks, gamestop, amc, blackberry, they all were really picked up their buying on thursday and friday. actually tuesdaywas a little bit more of a, i'll say, flat in terms of not as big a buying

bias yesterday, all had a buying buy y bias as the volume surged. >> jj, is there any risk firms like yours or robinhood or others not able to handle the volume similar to gamestop with the amount of collateral puts some of the stocks into the holding pattern? >> you know, the one thing i would say, andrew, everybody learns lessons from january. our risk teams always do a phenomenal job days like yesterday and all through the week, they do an amazing job of keeping our clients in check, so to speak, making sure the client and firm is protected i can't speak for other firms, obviously. i will say our risk teams were well ahead of this as we saw that surge on thursday and friday and started to get out in

front of it. >> okay, jj, you speak for tv. gunjin, speak to the industry. what's the risk that a robinhood or other firm says no mas. we can't do this anymore >> sure. this meme stock mania has gotten bigger when robinhood had the issues they thought it would displsipae and be over by now it has got even bigger and options have been through the roof i'll let jj speak to the industry risks, but many brokers learned lessons from earlier in the year. >> how much do we think this is the fund of the option trade >> i have been following this market for a few years i have never seen this much interest in options trading. options activity on amc hit a

record high yesterday. that's above the levels we saw earlier in the year when the gamestop frenzy was first starting it shows you how the movement has grown. people are looking to lottery ticket bets on amc they are trying to double, triple or quadruple money within days or hours through the call options tied to the stock jumping higher it is up another 20% pre-market right now. >> jj, is this ultimately good or bad for the markets or the economy or the system? i have to imagine when this is all over, regulators will tryt regulate this kind of speculation and trading out of the system or, i think, to the extent you believe these traders are trying to demonstrate the whole system is manipulated, that it blows up the system on to itself. >> andrew, first of all, the fact that so many people have become interested in the markets long term is a great thing now, with that said, it does

make me a little bit fearful that people don't fully understand the products they are using. most firms do have some sort of a tiering system to show you have some experience before you go in and trade. you have proper capitalization, et cetera, particularly on options. i traded options professionally my entire life i think they are wonderful tools. just like any tool, if you don't know how you to use it, it will turn out poorly. that's why we do spend so much time on education. i think, again, you want to reinforce this is not gambling this is about understanding what can happen to your money i truly hope people are spending the time we have seen a 300% lift in education usage. i see most people are doing it are there going to be people misusing things?

some people misuse everything, unfortunately. i believe the average person wants to do the right thing. >> jj and gunjan, thank you. there is an element of gambling. this is more speculative at this point and any investing. someone said every time someone says wrongly investors and amc, you would be drunk right now this is not investing. sorry. >> you are not going to take the other side >> investing it's trading there's nothing wrong with trading. >> it's gambling. >> i'm switzerland. >> that's what it is. >> afraid. afraid. >> why say a bunch of other stuff? >> this is not investing. >> there are so many other things >> for the long term it is short-term investing. >> unless you are willing to buy and hold for dividend income, a lot of the stuff we talk about every day is not necessarily

pure in the crypto world. it might not be pure investment. it's happening all around you. either way you can't stop it. you will stir things up. it is not worth it. >> someone has to take a drink cheers. still to come this morning, crypto elite investors heading to miami this week for the largest crypto event. stay tuned you are watching "squawk box." this is cnbc >> announcer: currency check is sponsored by interactive brokers. professionals gateway to the world's markets.

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all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. coming up, meat processing and oil pipelines and the new york subway system all under cyber attacks this past week what you need to know. back after this.

more headlines today new york's mta and the steamship

authority that operates a ferry in martha's vineyard have been hit with ransom wear >> good morning. >> i love your resume. you were the best connected 21-year-old in the world that's a while ago you're in the under 30 lists but now you're a geezer. you're over 30 now >> now we can talk about serious topics like cyber security and my gray hairs. >> for people who don't know, kyros is a venture fund. you do a lot of different things, tackle the world's greatest challenges, and cyber suddenly has been thrust into that category in a big way i'm wondering, do you have the answers? do any of your companies have a answer >> this has been a scary wake-up call but probably not in the way you guys are thinking.

everyone has been asking me what should companies be doing to protect themselves against these kind of cyber attacks. i think one of the big take aways from the pipeline, the subway attack, the meat industry attack, there's only so much private companies can do there's basic stuff we can do. we have to upgrade our antiquated server systems, store data, joe, this isn't any different from someone in a foreign country launching a physical attack on an oil pipeline in the united states. the reason we don't see that happening on a daily basis is because the u.s. government and the u.s. military have push sut strong methods and deter rents in place that people know if a foreign state or a private rogue actor acting on behalf of the state or terrorist group shut down a u.s. pipeline, the consequences would be severe even in the best case scenario these hackers are sophisticated

actors, right? they're using day zero exploits that even a.m.le and microsoft aren't aware of. these pipe lines, they're not running on jenke security systems. they have some of the top of the line cyber security software systems out there. just like physical infrastructure, there's only so much you can do to protect against every possible threat. so as much as we need to get our companies up to par, this is going to have some pretty profound implications on what the president is willing to say to these countries like russia when you have anch actors commig terrorism across the country. >> there's so much -- you just said a lot of verifications. i'd like to figure out what we need to do, whether we need to confront russia more whether this is a tesla in the new administration here in this country. as we've pointed out earlier, it is dependent on crypto do we blame crypto

regulate crypto? do we outlaw crypto? do we kill the messenger is the freedom inherent in centralized currencies, we know this can happen from that. do we accept that or is that the way you stop it or do you do something else to stop it? >> i might be the only guy in the valley who is bearish on crypto i think this is opening up a whole plethora of issues across the world. once the speculation.

this is scary stuff. these are really serious attacks. in the next 50 years of our lives aren't going to be worrying about an aircraft carrier off the coast of the united states, there's an actor in china and russia shutting down our power grids, oil grids, access to the food supply. those are real issues. it's going to require a lot of private sectors in space but it's going to require a lot of government intervention as well so that people know that that's no different than coming under attack. >> ankar,thanks. we'll have you back because it's not going away great to have you on this morning. >> thanks. >> coming up, more on stthe ock story of the morning shares of amc surging again. we'll be right back. a cutting-edge data-security enterprise. yes, with a slide.

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futures pointing to a lower open as investors turn cautious ahead of tomorrow's jobs report. a breakdown of what to watch ahead. that's coming up right after this the next act for amc stock nearly doubling in yesterday's session. we break down ceo adam aron's

preference to connect to shareholders. talking about infrastructure spending as the president's deadline looms a debate on how to pay for it is coming up as the second hour of "squawk box" begins right now. good morning welcome back to "squawk box" here on cnbc i'm andrew ross sorkin along with joe kernen and becky quick. dow down 170 points right now. the nasdaq down 105 points the s&p 500 off about 24 points. meanwhile, bitcoin on the rise this morning as well up about 2,000 bucks right now i think. it's got amc on the board.

stocks up more than 3,000% 200% this week alone yesterday a little over 100% just in a day. making another move to connect with retail investors. there is a way for him to connect with them in part as we've said before as potentially a way for them to get a vote so that they can actually sell more shares, raise some more cash and pay down some debt we'll see whether he's able to do that and in fact a strategy he's trying to pursue. a couple of other things to discuss. exxon mobil campaigning on environmental concerns

>> it was stunning to see someone with a 0.02% stake to cobble this together >> exactly. >> it's going to be interesting to see what they do to exxon one of the things, i don't want to say it's hypocritical, what's going to happen is they're going to start selling down these different assets, dirty coal plants, things like that guess what's going to happen they're going to sell them to some other private equity club, some less scrupulous company, right? it's going to change what's happening here we're moving the chess piece around. >> you don't think as you're switching to kale meat and everything else, you don't think china and india are going to be building coal and fossil fuel for the next 50 years? that's what i mean on a grander scale all of this

is like we can't really do that much based on what the bad actors -- >> if i wanted to make a fortune now, i would raise a fund just to buy these plants and then i'd run them for cash for the next 30 years and you'd make a small fortune. >> all the coal plants i believe you. you are talking about all this other stuff. i believe if you could you would run them -- >> i'm not -- >> no, i think you are saying you would do that. and i believe you. >> if i was looking to make money. if all i wanted to do is make money, that's what i would do. >> that's -- >> i try when i can. >> we're going to talk about this and then i want to go back because we're getting some comments about it. i have some thoughts about gambling versus investing. >> gambling, speculating versus investing, long-term investing. >> the whole options market. there are people who write covered calls. it's a very good conservative. there are people that write puts

to acquire stock >> right. >> you know who allows those people to do those things, people going wild, buying calls, buying puts. then there's commodities there are people that are acquiring fricken wheat. you know how many people are in there totally gambling that give you the liquidity. >> when does -- >> right at least half of everything we talk about is speculating. so i don't know why if amc or gme zblsh when did you press the line from speculating to flat out gambling. >> go look at the bond market. look at the bonds for amc. the equity frames.

>> my favorite day was oex the options could be selling for 1/16 and if they move into the money they go to 4 even with the short-term fundamentals, stock to flow, there are these fundamental issues inside the options market that on a very short-term basis -- >> right >> and there's things happening. >> just think, free popcorn.

>> news crossing about the supersonic future. it would be nice to go london to new york, phil we seem to -- >> sure. >> we were going for a while and then we couldn't do it anymore >> did you ever fly the concord? >> i never did but -- >> i didn't either and i know a few people who did they did not exactly sing its praises. they said it was loud, not terribly comfortable, but it was fast a fast future is what united is looking at it is ordering 15 supersonic jets from boom supersonic.

a denver-based startup it's 7 years old we've talked about boom supersonic before. this is what the united supersonic jets will look like not a whole lot different than what the first supersonic jet will look like they have ordered 15 with an option to take on another 35 at some point in the future targeting supersonic jet service by 2029. let's talk about the development of a supersonic jet by boom. here is the plan for the overtur. that's the name of the aircraft. 2023 is when manufacturing will begin. they plan to roll it out so we all can see it 88 people can sit on board by 2025 first flight in '26. you see commercial service beginning in 2029. for united they believe this is a smart hedge on the future. they will be targeting key cities like new york, san francisco. so you could do san francisco to tokyo, san francisco to sydney, australia. new york to london they believe that this plane

flying at mach 1.7 will cut down the flight time in half. so a 6.5 or 7 hour flight from new york to london will take 3.5 hours. again, guys, this is a first order for the supersonic jet from a legacy airline. a first firm commitment to buy 15 of these. we'll see. there are a lot of hurdles to be overcome between now and 2029 with the development of this aircraft united believe this is a smart hedge on the future. if it's going to happen, they want to be the first ones to fly it. >> is it going to be more comfort snabl do you think they'll deal with any of the complaints, the noise? >> rolls royce is making the engines. they plan to run on sustainable aviation fuel. that's part of the attraction for this purchase for united they are looking for ways to do not only their regular service in the united states but their long haul traffic which is going

to be difficult to cut emissions. they want to do that as much as possible on sustainable aviation fuel will it be comfortable, becky? we'll have to wait and see will it be a smoother ride in theory you would think with the advancements of technology it would be. we're a long ways from the overture taking off for the first time. >> weird it's a startup and not a boeing or airbus in this i wish it were >> boeing was looking at hyper sonic jets for a long time but they've been focused on other things lately. >> not ev yet though, is it? that might be fun. >> no. stop it. stop it. >> thanks, phil. we'll see you soon. when we come back, bitcoin conference kicking off in miami. we'll speak with mayor francis suarez who wants to turn the city into an east coast tech hub. red arrows on the markets. some deepening declines.

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amc is filing to sell 11.5 million shares they will sell from time to

time you're looking at the stock up this morning, up close to $80. 11% higher, 69.50. they would be raising $800 million. an opportunity to pay down some debt get in while the getting is good there's been a question mark about how many shares they could ultimately sell without a shareholder vote we'll try to dig through this filing and try to understand some of the details that are coming out literally as we speak. meantime, quick check on crypto bitcoin has been moving this morning and in the upward direction. right now you're looking at bitcoin up 3%. little over 1,000 bucks at $39,000. also let's show you ethereum and dogecoin looking at ethereum up 3%. looking at dogecoin also on the move this morning though down just slightly. this is all happening against the backdrop of a massive conference that's taking place

this week. crypto leading thousands of other investors have descended on the city of miami for the largest crypto gathering ever. it's called bitcoin 2021 joining us is the mayor of that city of miami, francis suarez. good morning, mr. mayor. appreciate you being with us you have, as we just said, the bitcoin elite or the crypto elite all in your city you've almost tried to rebrand the city around crypto what does that look like to you right now in terms of just the energy that's coming off of it but what you want the city to be as it relates to crypto? >> the energy is off the charts.

we had them buy the name rights of the arena, a $200 million deal it became a summer jobs program and became a strategy which of course is something that plagues every large urban city we're starting to see the roots of that rebranding we want to be a city that focuses on the next series of technological advances, artificial advances, crypto, biotech. so that's how we're positioning ourselves. it's bearing some significant fruit for us. >> you've talked about the city itself taking bitcoin and putting it on its balance sheet, paying people in bitcoin and paying people in crypto. are you doing any of that? >> yes, we are we're looking at -- the first thing we have to do we're making sure we have to surmount the legal hurdles. pea are accepting crypto for

fees and payments. we need a county to get on board. they passed a corollary resolution of the pound to allow for tax payments to be paid in crypto we're engaging in that process we have to go to an rfp, a solicitation for a third party that can manage it we're continuing to go along in that process on the balance sheet is a lot more complicated we're not allowed to hold something that's not fiat. that will require a state law change and then of course the volatility of it is something that requires us to -- >> that's what i was going to ask. there has not been a moment even in the last decade since the advent of bitcoin where it hasn't been volatile what do you think has to happen that's changed for you to actually put it on your balance sheet? or pay people. are your employees really going to take -- are your employees really going to take money in bitcoin? >> you know, it's up to them,

right? it's a choice that they would have it's not going to be forced on them in any way, shape or form they have the choice to do it. bitcoin i think the last time i checked was up for the year, you know, a significant amount the volatility is certainly there. at one point it was as high as 30,000 there has been extreme volatility i think that's something that has to work itself out it's a trillion plus dollar market cap there's a lot of transactional trading and volume when one person -- i'm a big elon musk fan, but when one person has the ability to make one tweet and spiral the price of a particular asset at that level, 10, 20% as opposed to 1, 2 rks 3% because there's volatility in everything there's volatility in commodities. volatility in dollars but not that kind of volatility. once that works itself out with enough transactional volume and much more stability and they

think it's something that certainly can be a hedge against fiat currency, something we can explore. >> how concerned are you about manipulation we've been talking all morning about ransom wear. you talked about the issue of somebody like an elon musk worrying about being able to push up the stock. i believe when you went on the air originally with miami's plan around bitcoin it also moved the price of bitcoin. >> it did and i think that's indicative of, you know, an asset that is very young, right? as we said, doesn't have, you know, stable trading yet and i think, listen, the possibility of manipulation is obviously a fear, right, and a problem without a doubt. as you said, when i put out that tweet about what we were doing in the city, it was literally the most viewed video that i have ever put out. i put it out at 10:30 on a thursday and it had 7 million views. that also ipd be cates to me that the number of customers, the number of people that are interested in crypto is

incredible i've actually heard reports over the last couple of days that up to 100, 150 million people are holding. >> mr. mayor, real quick before you go do you own bitcoin yourself? >> i do. i own bitcoin and ethereum. >> what price did you buy in at? >> i bought bitcoin i think in the high 30s and i bought ethereum, i forget the price, about 1500 i bought it the day that the u.s. congress, the senate passed the $1.9 trillion stimulus bill and i knew at that point that inflation was inevitable and there had to be some sort of a hedge. >> have you bought anymore >> i haven't bought the dip yet but i'm planning to. i've been too busy been working too much. >> you're calling it the dip mr. mayor, we wish you a lot of luck with it we wish you a lot of luck with the conference taking place in miami and we look forward to seeing you very, very soon. >> thanks so much. >> thanks.

joe. >> thanks, andrew. amc ceo adam aron reaching out. meme mania continues in that 8 k there's a pretty interesting -- pretty interesting quote that we can get to where the company actually said we believe the recent volatility in our current market prices relate market dynamics unrelated to our underlying business or macro or industry fundamentals and we don't know how long they will last. >> the better line, under the better circumstances we caution you from investing unless you are prepared to lose all of your investment. >> company disclosure. you might die. >> i love those on the nightly news, man. what i have is not as nearly as bad as if i take this stuff. check out the shares of

cannabis company tilray. this morning cannabis carol resuming coverage of the stock with an over weight rating price target of $22 a share. "squawk box" will be right back. time now for today's aflac trivia question. who is the voice of apple's siri the answer when cnbc's "squawk box" continues aflac! let's see that one more time. ♪ ♪ (bleep) (wincing) oooh, right in the wallet! ouch! aflac! aflac would have paid jill cash directly to help with expenses health insurance doesn't cover. hold on, i think she's trying to give us a side-eye... because she can't turn her head! (laugh) get help with expenses health insurance doesn't cover. get to know us at aflac.com [golf swing] -fore! andy, you seen my ball? it's by those t-shirts. nice. [golf sounds] so, what do you think?

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now the answer to today's aflac trivia question. who is the voice of apple's siri the answer, susan bennett. the voiceover actress was also one a backup singer for roy orbison and burt bacharic. amc going to sell 11.5 million shares they will sell the shares in the words of the ak, from time to time we believe the recent volatility in our current market prices reflect market and trading dynamics that are unrelated to our underlying business or macro or industry fundamentals we do not know how long these

dynamics will last under the circumstances, we caution against investing in our class a common shares unless you're prepared to incur the risk of losing all or a substantial portion of your investment i would say that that should be implicit a lot when you're investing in almost anything i don't think eastman kodak or general electric told people that specifically. here's what i think. i think adam aron, let's say there's two kinds of shareholders there's the meme stock shareholders and the long-term shareholder. if your a a long-term shareholder don't you say, way to go? >> no. >> you've got to do this. >> even though you're getting diluted? >> 100%. >> the meme stock people are not happy. >> it went up 20% down 10%. >> right >> it's moving lower now.

>> i hand it to adam aron. you're handing me this on a silver platter. >> that's what you've got to do. >> you've got to do. >> speaking of, we're going to settle all these questions right now with the definitive answer with our next guest. he's in the a guest. he's one of us amc almost doubling yesterday. it's always nice to have you on, jon, as a guest on "squawk box." the company ceo leaned into its place in meme stock mania. that was yesterday raised 230 million by issuing new shares. now we've got this new stuff, jon fortt. what do you think? this is not gamefication, this is all good, right democratization of the new millennial and generation z people >> joe, let's talk about not just the stock issuance but this direct communication with the shareholder base this is fantastic. it's like naomi osaka saying she

doesn't want to do press at the french open. she doesn't have to because she has millions of social media followers. amc, tesla, coinbase get pummelled. they develop their own voice elon took to twitter coinbase launched fact check and is amping up its own system. and amc has stock invest not long ago the voices knocking the rise of meme stock probably would have drowned out the enthusiasm of armchair traders we saw robinhood put the brakes on it. ceo adam aron has been able to capture their enthusiasm, amplify. today's gutsy retail investors are willing to place bets on an exciting future in the brands. these companies and crypto assets are worth what people are willing to pay the establishment business press

won't tell you that, joe. >> corporate information shops are the new, what is this, like pr news wire the new business press >> well, yeah. i mean, on the other hand, let's be clear about this. these companies aren't building media arms they're not interested in journalism, they're getting fancier with their pr and marketing. because this market has been running hot for 12 years with brief interruptions, squawk buckling geniuses are the rage their fans want to believe the hype and get rich. i'm not saying that the business press has clean hands in this situation. too many publications have gotten lazy writing poorly res reserved, inflammatory headlines but i will be shocked if three years from now the coinbase times does a thoroughly developed piece on crypto base in 2021. i don't expect amc to grill adam

aron on this revolution, the last five years haven't brought some big innovation in communication or stock trading reddit and twitter have both been around for 15 years retail day trading is older. what's new is low interest rates and easy access to trading on margin the new corporate media arms won't tell you that. >> well, they needed to go back to the drawing board on all the corporate media arms, i think, jon, because when they did the one we talked about at the top of your piece, the original raise, the stock surged and was up again the day over 70 i don't know did they go back to the well one too many times not up in the 70s. now down 10% wasn't it up it was up double digit percentages before. >> it was up 20% earlier this morning. >> so you've got to call them, jon, tell them the pr machine stumbled a little. >> i mean, maybe a little. >> free dots free goobers and raisinettes

they tried the free popcorn. that's not your report, john this latest news came right before your report. >> it's still way above 20, joe. >> it is. >> and 20 was high for this stock. so, i mean, just as long as they hurry up and get those shares out the door, you never know >> right >> from time to time maybe they might already say, all right, never mind 56 -- >> this is like -- >> still a pretty rich price. >> i played nintendo growing up and mario brothers when mario's blinking and you get the star, it's time to go crazy. do all the crazy stuff because he's invincible. if the meme stock buyers make you invisible, if mario is blinking -- >> take it back a little bit longer pacman >> this pacman used to blink that way too. >> you can eat all the ghosts. >> you can eat all the ghosts. >> right >> or the short sellers. >> or the short sellers. >> eat all the short sellers. >> i think there was something

like more than $3 billion in short sellers. >> i want to see pacman meme stock and the ghosts are shorts and -- >> jon, you think all the gme people are like what am i chopped liver? what is this amc stuff i'm still at 300 we're not even talking about gamestop >> week's not over, joe. week's not over. >> right all right. thanks, jon. still a lot to come on "squawk box" this morning. more on amc plus some progress maybe being made on president biden's infrastructure plan in washington a compromise seems far off we'll talk about the best strategy for a bipartisan deal and whether one is possible. that's next. as part of pride month cnbc is spotlighting contributors, our own anchors and producers. here's cnbc's ashley turner. >> never be afraid to be you yourself like fully embrace yourself. i took so long to come to the

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still to come, jim paulsen on the markets we are in the red across the board. by the way, let's show you some meme stocks including amc just announcing plans to sell 11 -- over 11 million shares into the open market. gamestop down now about 5% on that news. investors going to be hearing from some of these companies after the bell today when they report quarterly results we'll hear from lululemon, five below, crowdstrike and docusign and broadcom all coming back after this

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the white house said president biden and senator capito had a successful meeting yesterday. we're joined by mick mulvaney. he's the founder of exodus capital. heidi heitkamp, founding member of one country project also cnbc contributor and, folks, the headlines on this may be a little bit more optimistic than reality politico has a report out suggesting that the president is really looking for much more he wants $1 trillion in new

spending the plan that had been set forth had $257 billion in new spending and he wants to make sure it's paid for with hikes to business taxes as well. mick, do you think that that's something that's going to fly? are you looking at a situation where you don't think any sort of bipartisan deal can get met >> it's getting harder and harder it's hard to do anything bipartisan in washington, d.c., right now. i give president biden credit. he's stuck with these discussions longer than he might otherwise have he has a great deal of pressure from the left wing i think what you're seeing is a realization that the options are not nearly as good as a lot of people think if there's no bipartisan deal, it's likely there's no deal of any magnitude at all reconciliation may not be as easy as people outside of washington think your gut instinct is probably right. if your gut instinct is it's hard to do anything bipartisan right now including infrastructure, that's exactly where we're headed which is

closing the deal. >> senator, what do you think? is this a situation where you see some middle ground is that kind of a shrinking island at this point >> no, i think it's a question of bifurcation biden needs a bipartisan bill. one of the big promises during the campaign was that he was going to be a president that worked across the aisle. we saw during the stimulus package or the covid package that didn't happen so now we're in infrastructure where there almost always is a collective group of people who really want to do this their governors are pushing now and so you see this negotiation. the question is whether biden will take what he can get in a bipartisan deal and do what he can in a reconciliation package as it relates to bankers he's not going to give up too easy i don't know if there wouldn't be an opportunity to reach a bipartisan deal, it's a matter of how people look at the

politics of this the politics of spending on infrastructure, if it's bridges and roads and schools and hospitals, it's pretty popular in almost any state whether it's red or blue. >> heidi, the only thing i would say to that, i thought that was probably the way i had been leaning on this, too that would be what happened. we spoke with senator capito though and that was not what she thought the first time around. she talked about existing spending and looking for ways around the pay for is there, indeed, a change in what she expected and what other republican senators had anticipated. it seems tough to work out anything in the next week. >> well, you know, it's always darkest before the dawn or as my friend john mccain said, it's always darkest before it's pitch black. so we will see how it goes honestly, at this point no one really knows what the back room negotiations are going to be and

what they're going to continue to be. like i said, if this goes with -- in a reconciliation package in terms of spending and people are voting against bridges and roads, that's not a good vote for a lot of folks when they're looking at the needs back home. >> mick, let's say there is some sort of a deal between the two sides, what would that mean in terms of potentially changing at least the mood in washington, the thought that you could have something bipartisan >> certainly a move in the right direction. it would be a bellwether to what happens next what happens next after infrastructure the government runs out of money the end of september that's the annual end of the fiscal year. it hits the debt ceiling technically the end of july. that will be extended through what they call extraordinary means probably into the fall, perhaps the early winter these are things that are extraordinarily devisive in

washington, dc i think you look for these signals. >> sorry go ahead, mick >> i can't mention this about needing a bipartisan deal. as long as president biden is still dug in on the tax increases, to me that sends a signal that he's not really that interested in a bipartisan deal. as long as they're still dug in on noninfrastructure infrastructure, elderly care, child care, those types of things, that's a message they're not interested in in a bipartisan deal. if you start to hear movement in those areas, that's indication you might be moving down the road to some type of agreement. >> mick, that's an alice in wonderland through the looking glass. republicans want to spend this money as long as you don't pay for it a long the way? that's anathma to what everyone was looking at making sure you weren't doing deficit spending. >> nobody wants to pay for it. most republicans like spending money as much as democrats do,

they like spending it on something else my guess is the real pay fors they're talking about don't really pay for nything in fact, if you take all of the proposed corporate tax increases, they don't actually pay for this they pay for over 15 years they spend the money over 8. it's washington accounting which would get most people on wall street thrown in jail. a lot of it is messaging i wouldn't worry about the nature of the pay fors the tax increase democrats watch it for political reason, republicans don't. if you see movement there, again, don't see movement means that there's not really that much interest in a bipartisan agreement. >> mick, heidi, thank you both for your time this morning >> i was going to say hypocrisy works on both ends the last four years of the trump presidency -- >> heidi, i think we're losing your feed. want to thank both heidi and mick and we'll talk to them again soon

let me get my finger off that button. yeah coming up -- no, i didn't do that i did not do that, heidi i didn't. >> we would not give you the power, joe >> no, i don't need that power coming up, jim paulsen -- >> don't we all? >> jim paulsen on markets and a -- yeah. here. aspercreme with max-strength* lidocaine. works fast and lasts. keep it. you're gonna need it. kick pain in the aspercreme wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done.

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delta just out with updated guidance phil lebeau has the details. what's up, phil? >> becky, we have a number of

updates from delta ceo ed bastian going to be presenting at the bernstein conference in 15 minutes here's their guide dance domestic leisure travel more than 100% restored according to delta for the month of june. that compares to 60% restored back in the month of march june pretax loss will be a loss of between 1 and $1.2 billion. previously it was expected to be a loss between 1 and 1.5 billion. they are expecting a pretax profit in the second half of this year. international recovery next year you might be saying, why is the stock down the company is out with its q2 adjusted revenue between 6 and $6.2 billion that is a little shy of what the estimate is out on the street and that's why the stock under a little bit of pressure again, updated guidance just dropped by double. guys, back to you. >> okay, phil. thank you. amc, meanwhile, amc entertainment out a little while ago filing to sell 11.55 million

shares according to the 8k amc will sell those shares from time to time, they say quoting from the company's 8k we believe -- it's right here, we believe that the recent volatility in our current market price reflect market and trading dynamics that are unrelated to our underlying business. kind of knew that, i think or macro or industry fundamentals we don't know, nobody does, i guess, how long these dynamics will last. >> stop lasting today. >> they lasted a little bit less than they were earlier. >> didn't know what was cut out for that >> cut out for that. i know uproot all right. let's bring in -- do you have uproot >> yes >> working jumble answers into this jim paulsen, leuthold group. how much of your day do you spend thinking about crypto or meme stocks or the fed and the

speculation and fluff and the easy money how much of it is spent on that and how much just on what you normally do? that's historically looking at market behavior? >> well, you know, i think, joe, that the -- some of these stories are very sexy. they're fun. they're interesting to stretch out and see where they might go, but i don't really think they're central to driving what's going on for the economy or for the investing markets overall. >> even the -- i use the fed, three letter word. >> the fed is more important i think the interesting thing around the fed, joe, is the tapering we're so worried about tapering. i think it's already been going on for three months. i think tapering is already happening. the annual growth in the m2 money supply has fallen from about 27% in february to 17% at the end of april and it's

probably lower real money supply, growth rates fall from half from 26% to 13% in that same time period we're well into tapering everyone focuses on qe, which the fed controls, but i think the real tapering is money supply, which historically has been the best measure of really quit at this the private market plays a role in that. they've been tapering since february you're kind of seeing the impact in the markets i mean, growth stocks have been turning sideways since then. particularly tech stocks small cap stocks haven't gone anywhere the s&p is up just a little over that period of time. i think tapering is already impacting us and what's interesting is the money supply growth rate probably will be back to normal by the end of this year, back into the normal range, maybe 5 to 6%

tapering might be over even before the fed starts to taper quantitative easing. >> stealth tapering. the fed can do this without even letting us know. they can act like they're full bore you heard all of those comments. at some point in the future we're planning to have a discussion about having a plan at some point in the future. that's the discussions we hear and you're saying it's been going on anyway. >> yeah. i think what's interesting to know, we give so much attention to the federal reserve because, you know, they hold press conferences. they have various members talking around the country but the private sector plays as big or bigger role in this i mean, we, you and me, determine how the money supply grows as much as the fed does depending on our liquidity preferences. what's interesting is private market monetary authorities, if you will, invisible hand, has been tightening since february which many economists would say is about appropriate that's about when vaccinations

started. that's about when the economy picked up. that's about when commodity prices started going up too fast suddenly the private officials decided to tighten and have continued to do so. >> that's all good news, jim you see in the journal today, this economic rebound without historic parallel. that's how solid and strong and savings rates and consumer -- that's -- this is going to be pretty rip roaring and the fed probably doesn't need to be here now you've got to talk to the fiscal authorities about what they're planning, don't you? who's going to rein them in? but you love that, minnesota humphrey guy >> you know, we do a little spending i'm hoping that winds down too, joe. i really do. i agree. i think we're going to have real gdp growth this year 8% plus next year maybe 4.5% overall those are, like you said, rip roaring numbers by historic perspective. and we don't really need more

liquidity right now. i don't think we need more public spending for stimulus we might need it for infrastructure because we got plenty of private spending going on the good news behind that is if inflation doesn't get out of control here, i think we're going to have maybe $220 share earnings on the s&p 500 by the end of this year current street estimates are maybe around 190 so there's a lot of room to have to force wall street's earnings estimates up higher as we move through the year i kind of think the stock market has ended -- entered a trading range here through the end of this year. we might even have a correction kind of a pause period in part because there's tapering going on, in part because there's concerns about overheat and valuations but if let's say we stay flat the rest of this year, earnings go to 220, we're going to enter next year with an under valued stock market at least back to 1990 on a trailing pe basis with

way below normal yields yet, even if they go up over 2% on the 10-year and with the growth rate next year maybe 4.5% real gdp which is above average gloet. below average values, above average growth sets up a nice leg next year for another run in the bull market, i think the rest of this year could be difficult. >> wow i probably shouldn't have said humphrey that's dating myself mondale is better. do you see -- >> walter. >> the late, great fritz -- >> just passed away at 93. >> he spoke to bill clinton, joe biden, kamala harris, spoke to all of those people the day before he finally passed is that better for you if i do fritz rather than humphrey >> yeah. i'm not quite as old as you, joe, i don't think fritz -- >> exactly what i thought. exactly what i thought all right. you know what, paulsen, you

never disappoint in terms of things that i hadn't thought of. i don't know if anyone thinks we've been tapering, but it explains a lot of what we've seen. >> yeah. >> some of these things have come in a little bit while other things are still, you know -- still seem like there's some crazy stuff going on you're right commodities -- all right thanks see ya >> thanks for having me, joe. coming up right after this, insider's henry blodget will break down the meme stock mania. plus, key economic data out in just under an hour. futures ahead oft. i we are in the red. dow off 215 points s&p off 30 nasdaq looking to open down. worth is knowing it's never too late to start - or too early. ♪ ♪ wealth helps you retire. worth is knowing why.

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. good morning a twist straight out of a movie in the amc share price drama after nearly doubling yesterday the stock dropping hard a short time ago on news the company plans to sell millions of shares we're going to talk all about the retail investor move in the new king of meme stocks, former c ctd ameritrade joe moglia. adp job numbers plus initial

jobless claims and much more are as the final hour of "squawk box" begins right now. good morning and welcome back to "squawk box," the movie, here on cnbc playing in amc theaters nationwide live from the nasdaq market. not really the growth industry of the 21st century, which is theaters, not streaming. i'm joe kernen with becky quick and andrew ross sorkin buying physical computer games going into a store, brick and mortar, buying something that you're plugging into a play station. you know, nothing that's just online why those two? why those two? bed, bath and beyond i understand anyway, u.s. equity futures at this hour are down

the meme stocks have been surging but maybe people are getting wise to it if everybody's going to sell, all the companies when their stocks are soaring, maybe that takes a little -- maybe that's indicative of the end game for some of this we'll talk about that in a second. >> certainly the company's thinking it's a good time to sell. >> good time to sell saying -- >> hey >> if you buy this, you may lose all your money you don't see that every day in a -- >> most ceos will not usually say the market fundamentals are completely out of whack with everything else. >> nothing that's happening in our stock price can be attributed to our underlying fundamentals just so you know. the big story of the morning, amc shares are plunging. they might not look like they're down much. they have recovered from the initial drop where they've been up over 70 up double digits again after the big move yesterday they're up more than 20% the slide happened i don't even know -- has it been a full hour?

not quite an hour ago when the company announced they would be selling an additional 11.5 million shares of stock. from time to time as market conditions dictate but here's what amc, we were just referring to it, said in the 8k filed in their words, we believe the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business. or macro or industry fundamentals we don't know how long these dynamics will last and under the circumstances we caution you against investing in our class a common stock unless you are prepared to incur the risk of losing all or a substantial portion of your investment please call your broker now because we've got 11.5 million for sale they didn't say that at the end. after saying all of that, they're still -- may, we're open for business yesterday wall street was trans fixed by the near doubling of amc shares in regular market trading. in large part the moves higher

have been driven by extreme retail investor enthusiasm. >> diamond hands >> these are i don't know what kind of -- at the close they had a bigger market cap than united airlines, l brands why is l brands in there with united airlines and viacom. >> with the gains they saw this morning up 20%, they were bigger than the market cap of half of the s&p 500 companies. it's a substantial move. >> diamond hands, baby >> bigger than u.s. steel. remember who said that that'sa g2 reference. >> let's bring in mike santoli to help us try to make sense of what we're seeing. mike, good luck with that. >> i'll try. the company is merely acknowledging the absolute obvious and what we've been saying which has taken on a life of its own detached from what's happening in the company and the business amc year to date overlaid

against gamestop gamestop dragged amc higher in january. it was part of the whole movement here amc is completely racing above it what's important is the shape of the chart when finally it gets to the extent of that demand when it accelerates vertically, it becomes unstable at those prices yesterday the average price paid for a share of amc was around 65, okay yeah, it was up 30 something, up 62, but they traded in that higher level towards the highs of the day much more often 716 million shares traded. that's 50% more than exist so we talk about it being retail enthusiasm of course that's where the fire is lit that's where the excitement is happening. this is people chasing and feeding. take a look at interactive brokers. this is a year to date chart of what you saw back in january and february in that initial kind of excitement over the smaller

hyper growth stocks and some of the meme stocks. there was a real benefit to ibroker and obviously it's retail, also some hedge funds. this time you're not really seeing it. maybe the market is not extrapolating this type of fevered activity to the benefit of the brokers for very long necessarily. market wide concerns take a look at the volatility index. what happened in january and february was portfolio -- shorts were squeezed. losses taken on the short end and they had to back off of risk altogether and it created stress in the system. we're still creating stress in the system indexes are down i'm not sure it's a one-to-one direct relationship. even though the market has been unusually calm the last couple of weeks, that does show you that there's maybe a little bit of nervousness spreading from this activity. i talk about it in the way of mechanics. options covering 200 million shares of amc traded yesterday a lot of them are weekly options. a lot of them expire tomorrow and a lot of them are at strike

prices very high it creates a lot of friction in the system of dealers trying to accommodate that, trying to hedge. that's what's been going on and what does sometimes cause, you know, the gears to overheat and the engine to run a little rough, guys. >> mike, bernie herens said thes $1 billion in amc alone. >> that's the math. >> who's crazy enough to -- >> that's the math 20% of the float was short. >> right >> so you just sort of say the stock was up x on the short side, the paper loss is what it is, but 50 billion shares traded yesterday, okay? the number of shares traded yesterday was, you know, 8 times what the short position is so if it was a squeeze, it's over if it wasn't a squeeze, something else is going on because the shorts either covered it all, didn't cover it and are taking paper losses. it's one of the cover story for

why this activity is happening a lot of the other short stocks are running. i don't think in the context of the complex and a 35, $40 trillion market that a few billion dollars lost is something that is up ending the story. >> no, my question is are the short sellers becoming more scarce are they more afraid to do these things or do they think your bet is finally going to pay off >> that's a great question they have become a little more gun shy. there was some evidence that just like in the last month or to shorts did reload some of them the same names that are running right now, but i think in general the short positions in aggregate in this market are very low. you do not have people -- i know that it's very tempting to try and short because we saw what happened, the trajectory of gamestop and the company itself is saying we don't know what's going on with this stock so good

luck with it yes, i do think basically hedge funds are a little bit less aggressive on the short side in general. this is not a heavily shorted market i think it's mostly a manufactured narrative that this is a main street versus wall street thing narratives have power even when there's not a lot of basis to them. >> they do >> thank you we'll see you later. >> all right let's bring in someone who's seen a few stock surges and drops in his day how do you like that intro, blodgett >> excellent thank you. >> i didn't write that either but i was nodding. i was nodding. henry, have we even moved to some new high ground from what we saw in i guess i'm going to call it your heyday. you remember what i'm talking about. is this even crazier, do you think? >> i think assets of it are. the whole crypto boom and bubble is spectacular one of the things we were talking about is we were talking

about game stock as if it's a week or two. it's still trading at this extraordinary level. it's 10 times what most smart analysts think it's worth. yes, we're seeing a lot of longevity. i brought props this morning, joe. i brought two great books about speculation that i would urge everybody who is enjoying this show and perhaps participating in it to read in between their trading on robinhood. >> jesse livermore. >> yes, absolutely he blew his brains out after he went -- >> right great speculation book and a short history of financial euphoria a classic. 90 pages. >> yeah. >> you look back at what we were referring to, pet stock.com and all of those names in the late '90s if you did i have have ied up where the internet and at large, whatever you want to call

internet-related market caps, there's enough for everyone to go around and for all those valuations are now validated based often where the internet is there's nothing here that i can see like that. movie chains or -- >> yeah. >> -- i think that's a great point because there are obviously always conversations about the morality of speculating. andrew posed a question on twitter last night about what's going on in amc good for society? bad for society? regardless of what you think about that, it is a feature of our markets and it always has been but mostly in the past this rampant speculation has helped build something. it helped build railroads. helped build the internet. in this case what is it helping build, dogecoin? >> guys that are long call puts and calls, people that are speculating in pork -- i guess you don't do pork bellies anymore. speculating in beans and, you

know, cornering the silver market they give liquidity to the true companies that hedge and that have to use those markets for business reasons they give liquidity, but all along that's been pure speculation. we don't ask whether they're moral. we like them they give us liquidity why is this different than those speculators? >> to the point there, i think it's smart of amc to take advantage of this. speculators doubled their stock price yesterday. they can convert that into something that's actually useful, cash they have a lot of debt. they can retire debt they can build a war chest they're taking full advantage of it and that is smart george soros talks about this concept of reflexivity where prices drive behavior. this is companies taking advantage of the speculation to do something with it, which is positive for them. >> i wonder if there's a -- if there is a gme future in i don't know what, nfts, crypto,

whatever downloading like netflix the netflix of video games i wonder what amc can do i like these little massage chairs you've got that go back all the way andhave a cocktail >> what? >> i didn't say massages i said i like the massage chairs. >> i wasn't listening for a secretary. >> not a happy ending. right, henry maybe amc. who are we to say we don't understand what the movie going experience of the future looks like. >> if it is valuable to have a $30 billion market capitalization is i think what you're saying, you can do something with that if you act quickly. that's what amc is doing they're taking advantage of it maybe gamestop does the same thing, but i think we all know where this is extremely likely to head. i thought one of mike santoli's facts was fascinating, that the

average -- or the median price yesterday was $65 means a lot of people are already down unless they made a lot of money on the way up so it's -- you know, if you can't stand the heat, get out of the kitchen. >> what do you think gary gensler or the regulatory complex should be thinking about this insofar as on one side there's a view that this is manipulation, what we're seeing, and, therefore, that needs to be stopped. on the other side, the people involved in this are saying, no, no, no, we're demonstrating that the entire market has been manipulated and that needs to be fixed. do policy makers address either side of this >> i'm not sure what you do about it i mean, this is a very organized campaign not organized. that's putting too much on it. i saw a chart this morning of the sort of touting percentages of stocks over the past few months on wall street bets, for

example. back in january until about a month ago it was all gamestop. see this big shift to amc. what we're seeing is what can happen to relatively thin floats, although obviously enormous volume yesterday when a huge amount of fire power is trained on it. >> so amazing we're coming back to you after we get liesman's adp numbers. so just stay with us steve, you got it? >> got it, joe 978,000. payroll company adp says private payrolls for the bls will rise by 978,000 thats quite a bit above 680 sthourks they were revised down the april payroll number still above what the bls reported marianne number, goods sector did well 128,000. services 850,000 you can see that's above, all of

it, the nonfarm payroll estimate of friday. businesses by size, you can see it was across the board everyone is north of 300,000. small business, medium-sized business and large business all getting in on the action and dogmas sieve hiring according to adp looking at it by industry. very quickly, leisure and hospitality leading the way once again. coming back, the hotels, all of that stuff education, health services, the doctor's offices trade, transport, utilities, the airlines coming back they're building homes like they're going out of style guys, i wish i could tell you that you could take all of your chips and put them on a strong report on friday, but adp along with the wall street consensus, they've done a very lousy job of trying to forecast jobs during this pandemic. i'm give you one example they used to have an average of 80,000, it's now 400,000

one signal that perhaps the jobs market is coming back or came back in may. joe? >> thanks, steve let's get back to insider henry blodget and our conversation about the volatility we can spend too much time on this i don't know how many people are in this. if we were to agree that the cheap money is flowing downhill and way at the very end you've got crypto, meme stocks, nft, all of this crap, what about the stuff back here upstream what about the stock market? the s&p? what about the bond market or at least attached, somewhat, would you say, or does this really strong rebound in the economy validate where they are? >> i think first of all, steve just delivered some remarkable news which is great. the economy is coming back that's terrific. that matters a lot more to most of us than what's happening in the meme stocks. so that's great. i think if you look historically

at valuations across the market, the s&p 500 is at extremely high levels relative to all history a lot of people say look at interest rates that justifies it. problem is that to assume that that's going to justify it forever you have to assume that interest rates are never going to go up in the past when they've gone up that has taken multiples down. yes, i think financial assets in general are extremely expensive relative to most history at this point. so the money is filtering into the financial assets across the board. certainly much more concentrated in the stocks we were talking about a couple minutes ago. >> so they can be totally overheated and there can be just a little bit above average over heated, you think? >> yes. >> the bond market is detached from reality, isn't it >> well, unless you think we're -- the economy's going to roll over here and we're not going to get the huge inflation that everybody is talking about and so forth, in which case it

starts to look a little better to your point, facebook still trading at 25, 30 times earnings, actual earnings, trailing earnings. it's still growing quickly that is a high multiple relative to history it's not crazy in any way. >> got a message book her as a guest. judy shelton who we have on -- >> yes. >> henry, she's very smart if the money supply private sector impetus for the money supply is shrinking, that's bad news it means as much as the fed is going on its own, it's having less effect on the private sector it's affected at once. i haven't thought about that a lot to think about, blodget. what's insider working on? we like gawker. >> no, those are the old days, joe. >> do you do anything important on that rag? >> we do a lot we're all over these stocks. >> snarky click bait --

>> no, not anymore >> no, that's ten years ago. >> write something nice about us then instead of just snarky stuff. >> we always do. >> okay. all right. >> always do when they write about us >> when we come back, a lot more on this new economic data including the latest look at jobless clmsai thank you for watching "squawk" on cnbc. in business, it's never just another day. it's the big sale, or the big presentation. the day where everything goes right. or the one where nothing does.

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still to come this morning, an interview with joe moglia stay tuned, you're watching "squawk box" and this is cnbc. [ humming ] alexa? play "ooh la la."

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the white house has set a deadline next monday to see signs of progress on a bipartisan deal or else democrats say though may try to pass a $1.5 trillion infrastructure package themselves. exxon mobil saying the hedge fund engine number one has won a third position on the board.

engine number one has been targeting mobile they picked up backing from the pension funds despite holding a .02% stake in exxon. it will be fascinating to see how it transforms or not under this new board leadership. meantime, russia planning to remove u.s. dollar assets from its national wealth fund the wealth fund will increase euro, chinese and gold >> yes, we have. coming up, breaking economic data new jobless claims and productivity numbers are out in a couple of minutes. and instant market reaction. quk u wa g wn alysethe "sawbox" returns what a day of u. ha ha. jill is certainly upset

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welcome back to "squawk box. rick santelli here live at cme hq with breaking news. initial jobless claims post pandemic low reaching the 400,000 mark

385,000. though continuing claims cannot make the same comment. 3,771,000. it does not usurp which is the current low in that series that was the last week in april at 3,640,000 in terms of nonfarm productivity, about as expected. up 5.4%. the associated unit labor costs up 1.7 that is definitely higher than we expected. then again, anything that seems to point towards prices seems to be on the high side lately we all saw that hue among goss adp number just shy of 1 million. interest rates have ticked up just a bit and the ongoing argument will continue it will be framed as anecdotal, why people aren't going back to work i think anecdotal is getting tough to defend with vaccines out there, crowds getting large. it seems pretty obvious why people aren't working and to think that there's economists all over the country taking its

time to experiment, the government needs to get involved to give bonuses, lure people back to work seems like micromanagement on steroids but that's just me, becky. back to you. >> maybe next time you'll tell you what you really think, rick. thank you, sir >> exactly >> all right let's check in with steve liesman. he's back with us for his take on these numbers what do you think, steve >> you know, going in the right direction. these are good numbers this is the input to the claims numbers. what we see here is that the total claims and to get that number we unfortunately have to go back a couple weeks and look at a snapshot of history here. that did decline 15.4 million that said, they remain very high people are taking advantage of programs that are out there for whatever reason. rick, we don't want to necessarily make assumptions about people being lazy or otherwise remaining on the dole. perhaps there are other reasons they're not going back to work

that number is coming down if we get a strong number on friday, it will show it's going up pace. i want to take a look at the productivity numbers. >> big revision on continuing claims big revision >> what is it? >> go ahead, rick. >> 3,602,000 is the revision to last week's continuing claims. that does usurp the last week in april which was 3,640,000. so just wanted to point that out that in the rear-view mirror last week now becomes the lowest post covid continuing claims didn't mean to interrupt, steve. i'm not talking about lazy people at all, i'm talking about smart people they're staying home because they're getting paid to. that's not stupid or lazy. >> well, we also by the way added 266,000 jobs in april and 770,000 and they were getting paid then, too people are coming back to,

would. i tend to think, rick, i give people a little more credit here i'm not saying you don't, but i'm saying there's a sequencing issue. we just opened concerts are just happening. airlines are just flying hotels are just opening. the idea that we all of a sudden opened and there was this big gap in terms of people coming back to work, people don't just drop everything and head back to work when they can. >> did you not see all of these help wanted signs? you don't believe your own eyes? >> i do, rick. i believe them. >> i think this is all crazy. >> i believe them. >> there's a lab in china that creates these things we're saying, we can't consider that we don't consider the obvious things in life anymore i don't get it it's obvious that this is having an effect. >> i believe my eyes, rick. >> it's getting bigger what do they see >> i think there's an awful lot of things going on -- >> long lines and help wanted signs. gee, how do we connect those two dots >> we connect them by saying that the schools aren't open yet, rick.

people still have some health concerns. >> schools are closing for the summer that excuse is getting pretty lame >> no. no, it's not, rick. >> they do every summer. what do they do every summer when kids don't go to school do they shut down every business >> they go to day care joe -- rick, they go to day care. >> well then you make sure day care gets vaccinated these excuses are wearing thin we've conditioned people to be -- i don't know -- >> they're not excuses, rick, they're the reality. >> no, i don't think so. >> her man melville, let's not us the well paid, the well housed and the well fed make so many judgments about those who are not. just be a little careful here, rick >> gentlemen, we are going to leave the conversation there and i'm sure we will continue that debate >> kept calling him joe. liesman kept calling rick joe. get it straight, liesman

>> same difference >> joining us right now though for a further look inside today's data as well as a preview of tomorrow's big jobs report, lindsay viexit lindsey, great to see you. do you want to comment on that debate that's the debate, by the way, that's happening around the country right now? >> i think i actually agreed with both sides of it. i certainly think individuals in the labor market are acting rationally that's not a political statement, not a judgment. but if you offer someone x to not work or x minus 20% to work, i think most rational agents would choose the larger sum, the larger take home so i do think that there is some incidents that individuals are riding out these benefits and, again, that may not be a permanent thing. it's going to be a short-term thing. >> lindsey, how much of it is that -- >> they have health concerns, school issues. >> there is the issue of child care there is the issue of just

displacement you know, the local restaurant where i live, i was talking to the owner the other day. in fact, he was suggesting to me, he said a couple of our best waiters, he said, they moved they moved they moved to other states. >> yeah. >> some got involved in real estate, other kinds of businesses he said, will i really be able to get them back i don't know some are not working, some are trying to get back there's a lot of things happening here i'm curious in your minds is the unemployment benefit which rick was talking about versus all of the other issues which i think steve was talking about. >> i think it's probably an even divide 1/3 for benefits, 1/3 for the child care issue, 1/3 for health concerns or other covid-related incidents. but i certainly agree with you that child care is a big factor. we're desperate to get the day cares back open as you can probably just hear my 3-year-old just woke up it's certainly a very big factor for working parent.

>> bring her on. >> feel free, lindsey. >> bring her on. linds be si, in terms of the numbers that we're going to see tomorrow, what's your expectation? >> we're looking for about 600,000 so this would be a sizeable step in the right direction from what we saw last month. very disappointing april but this does speak to the notion that we should expect to continue to see volatility this is part of the nature of living through a pandemic. but it also reminds us that we shouldn't be so focused on one month's reports. if we look at job -- excuse me, when we look at pay rolls, even including that disappointing april report, we were still adding 500,000 jobs. more than half a million payrolls on average on a monthly basis. there's a very clear, strong underlying trend in hiring we do expect that to continue going forward but, again, month-to-month volatility will continue. >> do you want to weigh in -- i know it's not why we're having you on but it all relates, i

think, which we've been talking about amc all morning and crypto and the meme stocks and what that says about either where we are in the economy, what's happening. what did you say >> i feel so bad we have to let her go. >> we feel bad because your child is with you. >> i'm feeling her pain. >> i'm glad that they're altogether real quick, what do you think is going on in this economy is it the fed? is it the stimulus creating this sort of moment >> well, i do think that there there's a lot of artificial support going from monetary policy, fiscal policy. that's part of the reason that we do need to see a return to more organic principles to get on the longer term trajectory to sustainable growth my concern is right now we are seeing an influx of consumers, we are seeing businesses reopen and welcome back those consumers but what happens when the government punch bowl is removed or all of this accommodative policy is removed?

so we do need to get back to organic principles reliant on job and income growth as opposed to temporary supports from either side of the spectrum. >> okay. >> lindsey, you rock >> great to see you. >> thanks very much for having me. >> we appreciate it. boeing is in focus for investors today. ceo dave calhoun expected to update shareholders on deliveries as the 737 max jet. phil lebeau has been busy. joins us with what to expect hi, phil. >> hey, joe. it's the bernstein conference. a lot of ceos presenting there delta updated its guidance with its ceo giving an update a few moments ago. in focus will be dave calhoun, the ceo of boeing. we want to hear what he has to say with regard to where the airline is now a couple of things on the commercial airline front that will get attention we'll see what he has to say about the 787 production remember, they announced just last week that they were going to be delaying their deliveries.

why? because the faa still is not comfortable with their quality control measures in terms of final inspections. essentially for about 6 to 7. >> we'll see if there's some update >> thank you, phil that was number three, right got the boom, got the -- they're all over the place can you come back at the end and summarize? >> yeah. >> we've got delta, supersonic jets and now we've got boeing.

thank you, phil. keeping us updated. talking about shares with a man that knows a thing or two about retail investors joe moglia will join us on the return of meme stock mania stay tuned watching "squawk box" on cnbc. you packed a record 1.1 trillion transistors into this chip i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you become an agent of innovation with invesco qqq in business, it's never just another day. it's the big sale, or the big presentation. like you the day where everything goes right. or the one where nothing does. with comcast business you get the network that can deliver gig speeds to the most businesses and advanced cybersecurity to protect every device on it— all backed by a dedicated team, 24/7. every day in business is a big day. we'll keep you ready for what's next.

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all morning talking about amc and the shares we got the news amc is going to sell 11.5 million shares the stock fell off a cliff from what we had seen you'll see the amc shares are trading -- all right, down by about 8% we had been up by 20%. this comes after we had seen a doubling of the stock price yesterday. joining us now is an expert on retail investors joe moglia he's chair of the fg new america spac and, joe, you are somebody who knows the retail investor. you have your entire career. what do you think about what's happening right now with amc, with gamestop -- >> yeah. >> -- some of these other so-called meme stocks. >> i think you have to break it down, becky. good morning you have three types of investors. i thought the three of you did a good job this morning talking a little bit about that you referenced two you have the long-term investor who will rebalance their respective portfolio

then you have the long-term investor that has a strategy where they trade around the positions. trimming to strength and add on weakness they could do 10, 15, 20, 25 trades a month then you've got the day trader that's what we're talking about now. the concern i've got, you can have arguments wehy amc may be going up, people going back. john krusinski movie that got great reviews over the span of the weekend. i give amc a lot of credit this morning for having said the fundamentals in their company are not matching the performance of the stock that's going to cost them some money in terms of what they're trying to raise. i give them credit for that. at the end of the day sometimes you can make a lot of money and it's not a fundamental trade it's a technical trade when the day traders, what they did with gamestop and what they're doing is a tafl echnical trade. you said this earlier today, the market is going to turn around the technicals are going to wear

out and we have to be prepared for a down move in that. so far they've probably made a little bit of money. i still would question the institutions that i've heard so far have lost about $5 billion in their shorts. they haven't figured out now they can get hurt through short squeezes through retail, that's something the institutional investors have got to learn. >> yeah. that's a lot you give us a big, broad overview joe, just using the term day trader, not something we use anymore. that was the late 1990s, early 2000 is this the same is this different? does it rhyme? >> i think there's a great pair alem day traders came around in the '90s for a couple of reasons the internet we have great technology today second, we had an incredible bull market. the market went bananas there the second half of the '90s. march 2000 it explodes we had a very difficult three-year recession we've had a great five years in the marketplace. as long as the markets continue to do well over time, like month to month, the day traders are

going to be okay if we go into a bad year the day traders are going to get wiped out. that's what happened in the '90s that's what will happen this time. >> until then you would just tell the institutional investors beware you wouldn't get short any of these things >> up until plotnik and melvin capital, i don't think any institutional investor thought the retail market would be able to come together and put them in a short squeeze. we learned something now that's what's happening now. the institutional investors, they're sophisticated people they have to wake up to that that's a threat you have biggest concern is what's going on with the individual investor though and that they've got to be able to understand when they use leverage what that really means. leverage on the way up is a great thing. leverage on the way down can rip your arms off and i think the robinhoods of the world and ask kevins of the world, we have to do a better job to make sure we can educate the individual

investor who likes to day trade and see what the risks are quick example. if you bought amc at 10 and it goes to 20, is that not enough of a profit? it goes to 30, goes to 40. at what time do you start to trim that position or in effect get rid of the position altogether there are things that we've got to do a better job of with the day traders. >> is it education is it saying you're not allowed to add more than x amount of leverage how do you do it if there's been a lot of talk about this and a lot of clear cases where it was a serious problem, i don't know that everybody gets that. >> no. i totally agree with that. with what took place a month ago at gamestop, the regulators, sec is going to do a good job looking at that. should there be some requirements around how you handle a short position? perhaps there should be. should there be some requirements -- there are requirements right now with regard to leverage it's understanding that. i think it's absolutely i think

a matter of education. you get carried away when you're making money every week or every month. when that blows up in your face, you have to be prepared for that that is a matter of education. >> joe, you bring up concerns about the retail investor. again, you're somebody who's been a champion of the retail investor. watching this, for decades. i think a big part of the concern though is if these retail investors get burned and burned badly, it will turn them away from the markets, an entire generation of people away from the markets and that's bad news, bad news for what it means for the markets but worse means for what it means for the generation of people who have turned away with what should be the best way of raising money and saving money, over a long period of time. >> i think when you make a mistake in the business world, when you make a mistake on the football field, when you make a mistake as an investor, you tend to learn the most from those mistakes and the concern that you're talking about, becky, is very, very real. having said that, at some point,

at some point in time, the day trader's got to recognize that the markets go like this over time they got to be prepared for the down moves as well as position for the up moves and they got to move a little bit from just being a day trader to having a little bit more of an understanding of what a long-term investor strategy should be. and bringing in that discipline with a long-term perspective, even if they don't become long-term investors right away, just the understanding, moving in that direction, is the right thing for them to do if they love what they're doing and they get burned a bit, that shouldn't send them away in the market, although i recognize that's a risk, they should tell them a better education, a better understanding that day trading alone is not good enough to ride the ups and downs and what is going on in the economy and the markets over the next several years. >> and add on to that you shouldn't be content and wall street says you should be happy with a 7% annualized return and we can give you a 30, 100% return and you hear things like this and this is the danger

zone. >> how many commercials have you seen where people talk about gold, quintuple your money in two days, there are always going to be people that are going to talk about these incredible upside moves that's what is going on in the spac world today you've got people, target companies that don't have, that have no profitability at all and talking about the possibility of all of a sudden, 2026, we got this incredible opportunity where we're going to make a gazillion dollars, their wishes and hopes, as opposed to actual thought-through strategy, so people can get carried away with someone telling them 40%, 50% and they have to understand reality and education along those lines. >> i'm glad you brought up concerns about spacs you have a spac of your own. why is your spac different >> first of all, all spacs are not created equal. spac sponsors are not created equal. and the target company is not created equal. you got a gazillion spacs out there most of them i think will

go out of business once the target is announced, you have about 110 targets have been announced, there's only three of those, three, that have been profitable, will be profitable for 2019, 20, 21, only three there's only one company in those announced that has had the numbers in the last five years first of all, we're profitable secondly, when we decided that we wanted to work together, we felt great about the management team and what they were doing in the business strategy, but also we said, a typical spac oftentimes, you can have an attitude before you get the spac done and get the promote and get out of there and we said we're only going to do a deal with somebody we believe in that has legitimate long-term prospects. i have a two-year lockup, i offered that up and i hope i would be in the stock for a long time, as my entire team would. that's the difference. it's a real company. once you announce the potential

merger, that gives the institutional individual investors, an opportunity to evaluate that company, not the spac, the spacs are going to go out of business, but the right company at the right time, with the message in the spac world now, i think there are incredible opportunities of diamonds in the rough, i believe this would be one of them. >> up fi is sort of similar to so fi but a lower income customer. >> that's right. we have the great ceos with the great pedigrees, and both digital banks so to speak, and the credit level of the people that are currently investment based are higher than what ours, ours was less so, and you have 150 million people in this country that don't have any savings. but 50 million of those have the ability and the willingness to pay back they're the heart of our market now. what we need to do as we go forward is diversify our revenue stream and products and start to adjust the markets that we're

working with >> joe - >> that's the difference. >> great to see you. we'll talk with you again very soon thanks for your time today >> take care. >> gazillion isn't a real word. >> it is not. >> guess how many words? >> guess how many words you can make out of gazillion? >> a ga zillion. 118. >> did you sit here doing that >> i got to three. >> news to use, folks. when we come back, we'll get you geared up for a crazy day ahead. we'll talk more amc and bitcoin as well. we're back after this. (it's a skirt... and shorts) the world is going hybrid. so, why not your cloud? a hybrid cloud with ibm helps bring all your clouds together. that means you can access all your data, modernize without rebuilding, and help keep things both open and secure. that's why businesses from retail to banking are going hybrid with the technology

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welcome back to "squawk box. chamath palihapitiya filing for four new spacs today, the new blank check companies he says are going to focus on biotech and seeking to raise at least $200 million each. this all comes as the spac markets facing a lot more increased scrutiny and waning investor confidence, at least it appears to be but moving into the biotech space, all four of those focussed in that direction. a big piece, i don't know if you guys saw in the new yorker, this week, all about chamath, called the pied piper of spacs.

>> he's done very well with them. >> he's done well but i don't know where he is now in terms of his own. he does put a lot of his own money into them, in addition to the money that he's collecting as the promoter. and he's up, but on a relative basis, i don't know. i don't know where he is right now. >> i like what you said, after all that spac information, you got your own, right? oh, yeah, i got my own but they're not all equal. obviously. he's right final check. >> we missed the window. >> what would we buy with the blank check? >> doughnuts tomorrow's national doughnut day. >> you want the greasy bacon-flavored doughnuts >> i would like to put a call out, actually, as if everybody knows, i will eat, if you send the doughnut, i will eat it, we

had a number of great doughnut companies. >> if they come. >> i will eat the doughnut if it comes. >> i'll bring you some. >> about 10 or 11 in one sitting, i think. >> i don't think you've ever done a dozen. >> the market is down but 200. down but not out amc was up then it went down. make sure you join us tomorrow "squawk on the street," and national doughnut day. we're gone good thursday morning, welcome to "squawk on the street," i'm carl quintanilla with david faber and morgan brennan. cramer has the morning off equitiesare near three or four week high. news on amc. guidance from the airlines and labor day, adp, one million and claims below 400 k the road map begins with the meme stock trade though. amc wiping out0%