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 out a 20% pre-market

gain with a warning to investors, be prepared to lose it all. exxon prepared to lose a third activist board member and backing another nominee from the hedge fund engine number one >> and where are the regulators? amid the meme stock madness, what can the s.e.c. do to help protect the investors? carl >> guys, where else would we start but amc filing to sell up to 11.5 million shares interesting, pre-market high this morning, david, what is it, about 77, but then we got a hold of this language out of the 8-k which does warn people to be prepared, to incur the risk of losing all, or a substantial portion of your investment >> yes, well, even here, and let's see where it opens today, and of course yesterday, carl, we all know what happened as you can read the language itself, from that 8-k, where they do say the volatility, the current market prices, and trading

dynamics, are related to their, unrelated to the underlying business, and they caution you against investing unless you're prepared to incur a lot of risk and potentially lose money and yesterday at this time we were remarking on a stock that was up 20, 30%, appeared to be and skyrocketed later in the day hitting levels that i think few could have anticipated even yesterday. but even at this level, if it were to open let's call it at 60, it is a $30 billion market value and add another roughly 10 billion is what i've got still for debt, an enterprise value of over 40 billion, what do they have, they have 900 and something theaters, you're talking 40 million plus a theater if you want to do it that way, the numbers are incredible, they don't support the fundamentals in any way, as most people know but that doesn't seem to be, morgan, what is at stake and it is simply people buying it because they think it is going to go up, a fairly significant short position and unclear how much is closed out at this point and i would add one more thing

is they're pretty much out of shares they had an optimization to go to 524 million shares, with the 8 million that they sold to mudrick, and then the 11.5 million here they can't have many left. and you need shareholder approval to authorize more shares, not clear they're going to be able to get it especially when your shareholder based changes pretty much every day given the volume in the stock. >> it changes every day but we also know that amc said that 80% of those shares are being held by individual investors right now. which again speak to this meme madness, if you want to call it, this reddit fueled day trading, retail investor boom, that we're talking about, and just to go back to marketcapitalization, david, that makes amc now greater value, more greatly valued than half of the s&p 500 companies, and it's ripple effects, too not just amc or gamestop or bed bath and beyond and some of the specific individual names that we've seen major moves in, it is also stuff like the russell 2000 value index which both amc and

gamestop are actually a part of, "the wall street journal" did a good takedown on this last night, actually, just noting that the rallies of those two stocks have helped push the value index to its biggest outperformance versus the growth counterpart for the russell 2000, on record. and that is going to be something to watch as well, because you have that next annual rebalancing of the russ schedule index, the news or the announcements around that will be happening later this week as well so in general, this has had ripple effects to other parts of the market, carl >> yes, your point about the growing list of meme names is actually tallied today, b of a note, guys, they look at the small and big cap names that are getting the most mentions on wall street bet, amc and gme are by far number one and two, and followed by space and beyond meat zillow in there. plug power goodrich american airlines. remember that episode from a couple of months ago bed bath and cleveland cliffs. as for fundamental, david, i

mean we keep getting reminded of interest expense at amc, about $700 million a year, that would put you above 2019 ebitda, but again, when we get these reminders from people who are likely on the short side, they say look, this is for a time when fundamentals do matter again, it's clearly not today. >> no, and we don't know when it will be and to that point, listen, gamestop obviously is still hanging in there, $282 a share. when this all began months ago, there were many who, or few i think who would have anticipated it would have helped up the way it has, it never did quite broke. it did fall dramatically from its highs and rebounded dramatically as well, as you take a look at that stock, not far, really off of those levels that we saw, well, that's, you know, that's back in february. so yeah, we'll keep an eye on this, you know, for its part, gamestop has been able to raise some capital, say it's changing its business to more of a growth orientation, amc's ability to raise capital here, may help it, but again, back to that

authorization, they can't raise quite enough to be able to raise enough to pay down all of that debt let's move on to another part of the story of course which is regulators and the meme stocks as well as that volatility continues. amy lynch a former s.e.c. regulator, now the founder of front line compliance and weigh in for us here, in terms of whether there even is a compliance/regulatory framework to this. you know, is there something to be looked at, or have we already gone through this given we saw it happen with gamestop a number of months ago. >> good morning, david thanks for having me back on the show today and yes, here we are again, when we last spoke in january, we were talking about gamestop, and right up there with that security, and now, we're here again, and we are talking about amc. and at first, i think the past few weeks, it was looking very similar, what was happening with amc, in relation to what happened to gamestop, in january, but now, we've had just in the past few days, we've had

some significant changes and that of course is with the offerings that were announced, so first, we had the special offerings with mudrick capital, which occurred a couple of days ago, and now, we have the offering that was just announced this morning, to the general public so there are definite differences now between what is happening with the amc trade versus the gamestop strayed. >> does any of it mean that there is going to be any regulatory scrutiny or is amc doing what it should do, raising capital to the extent it can in the authorization given the run-up in stock and they have done successfully so many times during the course of this period is there anything that we've learned from what we saw in gamestop or that is new to this situation that you believe rises to the level where the s.e.c. is going to be taking a closer look >> well, one thing i can say that they did was very smart was when they put out their 8-confirm, as you mentioned

before in your show, that they were disclosing to investors that this is a highly risk, a high-risk investment, they could lose all of their money, that they should not be investing or buying these shares, because of the volatility, so they really did try to cover their bases, as far as their disclosures to investors, in this offering, and that was a huge big piece of disclosure for all of those reddit traders out there to basically warn them, and hey, listen, shoe not be purchasing these shares at these prices, you could lose awful your money, and the s.e.c. is very concerned about that and of course their mandate is to protect the retail investors. so they like to see those disclosures, and i think that the fact that they put that language very explicitly in bold print in their filings, does go a long way to protect them with this offering.

>> i wonder, speaking of disclosure, this new platform that amc rolled out this week to connect with retail investors, giving them some promotional materials, popcorn, you know, invitations to screening, but also the ability to communicate more directly with management, does that raise eyebrows from a disclosure standpoint? or not >> well, it's interesting that they're doing that i actually went to the web site myself, for that amc stubs.com, i believe it is, that you can sign up as a shareholder to get your free popcorn, and i think this is just a promotional campaign, that's what it looks like, so i don't know how meaningful that part of their offering is really going to be it will be interesting to see how that plays out it's very new. >> yeah, i mean it certainly speaks to the fact that the individual investors are also prospective customers for a company like amc, amy, i'm

curious though, given that comment that we got from s.e.c. chief gensler not that long ago about him saying that he's in favor of reducing the standard settlement period, that that had broader implications to the market writ large but given the fact that we are having these conversations about the retail investor-fueled spikes in certain stocks and what we saw play out with robinhood earlier in the year with gamestop is, that something that could actually be yielded from all of the market activity we are seeing in some of these meme-themed trades >> well, shortening the settlement period will go a long way towards the margin requirement, the collateral requirements, that the growth like the robinhoods have to maintain, for a dtcc purposes, so yes, that will definitely add more plumbing to the market so to speak and really be helpful to the large players in these stocks that have to hold those securities on hand

so they can provide them to their customers. so that would be a big win for the industry if they could shorten the settlement period for sure >> and i'm just curious what you think and sort of shifting gears here a little bit here, amy but all of the reports we're getting about elon musk and the dynamic there with the s.e.c. on twitter, how that plays out, not only for that company, but also just what we're seeing again in general, in the midst of all of this social media-fueled trading, in terms of disclosures, comments, material information, that is going on in the social media site. >> right, so what's interesting about that, actually the s.e.c. has come out with changes to its advertising role, and now this is specific to investment advisers, the advising role, but one thing they did address in that role is the use of social media, and testimonials, for example, and they may actually take from that role in the future, and address social media

more in general. and it would be interesting to see if they decide to do that, because as you just stated, morgan, between elon musk and now i believe the ceo of amc, has also tweeted some comments out to the industry, regarding its moves and intentions, with its stock offerings. so can these ceos move their stock? we have actually seen that they can. and what kind of control should the s.e.c. put around that as we know, back in 2018, elon musk got into trouble with the s.e.c., for doing just that. for tweeting about the stock price of tesla so that has been hard for the s.e.c. to enforce, because he's continued to tweet about his companies over the years and they put out additional letters to him, and to tesla, regarding his tweeting activity. because his tweets were supposed to be monitored by counsel and

reviewed by counsel before they were released, and it certainly doesn't seem to be the case that that is actually happening so it will be interesting again to see if they decide how to handle the amc situation, if they deem any tweets made by that ceo to be along the same lines of what mr. musk was doing. >> all right, amy, appreciate you taking time. thank you. >> thank you have a good day. >> you too carl guys, we're going to talk after the break, some guidance out of gm, guiding higher than prior, significantly higher in their view, and boosting some truck production, morgan, and canceling some scheduled downtime it does appear, we'll talk to phil lebeau in a moment with this, maybe they're getting some hands around the chip shortage that has obviously bedevilled all kinds of automakers. >> this is the thing to watch. it has showed up in macro data as well, including earlier this

week, this chip shortage and we've seen, and we've heard of conflicting comments from many different ceos across many different industries and i think back to intel earlier this week talking about how long that shortage could actually last, but perhaps for the companies that are able to secure that inventory, you know, it's good news carl >> yeah, let's dig in to gm. looking for auto sales today there's some very cool aviation news today >> oh, yes. >> let's bring in phil lebeau. good morning, phil. >> good morning, carl. taking a look at shares of general motor, the stock moving higher after the company updated its guidance for what it plans to earn in the first half of this year. the company now saying that it expects to do significantly better than its previous guidance just for point of reference, its previous guidance was the expectation of earning $5.5 billion in the first half of this year. remember they made 4.4 billion in the first quarter so the expectation was a little over a billion in q2

they're now saying look, they're going to do significantly better than that. but not putting a number on it as for full-year guidance, that is not changing, all because the company is now a little bit more comfortable with the cadence of vehicle deliveries, when it comes to getting out especially mid-sized pick-up trucks and more super duty pick-up trucks and we talked over the last couple of weeks how they're bringing that production at a number of plants so it is an improving situation when it comes to the chip supply and more importantly, the management of their semiconductor supply, that's allowing them to do this, and again, general motors up a little more than 3%. by the way, we're going to hear from mary barra, as well as cfo paul jacobson a little bit later on today, at an analyst conference and also taking a look at shares of ford, the company out with its may deliveries and the company saying that its may sales, included an increase of 4.1%. the best may for suv sales since 2003 and for the first half of this

year, all the way up through may, its f series deliveries are up 4.3%. a little bit of a tick higher for ford so encouraging news from two of the big three. guy, back to you >> phil, we'll check back with you on this a little bit later on this morning, as i'm sure phil lebeau. we'll take a break and talk about exxon engine number one, and labor data, encouraging with anaims and adp and what it may me for the jobs number tomorrow don't go away. collaboration is still evolving. it's time to make collaboration better, seamless, secure. with cisco webex orchestrated by cdw, get ai enabled automatic transcription and translation, and easily share documents, notes and even whiteboards from anywhere. so even if you're not in the same room, you can still say, "go, team!" for evolved collaboration, trust cisco and it orchestration by cdw, people who get it.

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hedge fund engine number one has gained a third seat on the exxon board of directors and the idea that exxon simply not doing enough to address it in the business and the ceo darren woods says he looked forward with working with the new directors and we covered this last week and i have been reporting that it was likely, likely that mr. karsner would be added to the board, it is a preliminary count but it appears to be the case with exxon mobile, there is a look at the three new directors and exxon settled not that long ago with d.e. shaw, and then with ubben and angelakis. and they did what this needed to

do and this is not going to result in any more changes, and by the way angelakis did receive the most votes so interesting. the brand new directors referred the most votes going down the list in terms of all directors, morgan but can't understate the significance of this in some ways we have to see what the recall fictions are how much was exxon specifically, as i said many times in terms of perhaps a deeper discontent with the company with the shareholder base and they have been fully recognized because of a history of sort of not communicating particularly well. and how much of this really is reflective of just the changes in frankly capitalism, in terms of the importance of esg, and even from a profitability standpoint or a standpoint of giving up some profitability to get your business in a different place, with the prospect that you will ultimately benefit. but it was seismic and it is three board members. something that was hard to imagine when this campaign began. >> it is so incredible to me it was only a couple of years ago that i don't think anybody would have imagined doing this to an exxonmobil, maybe another energy company, but i also think

it kind of speaks to david, the fact that you are in general, seeing this bigger fundamental shift among energy companies, at least u.s. energy companies, to be more focused on the financials, more focused on cash flow, being profitable, et cetera, and we heard about that from pioneer and natural resources a couple of weeks ago and the shift to cleaner greener energy and reinventing itself in the midst of what is expected to be, how long, up for debate but the shift to new sources of energy and new sources of fuel it's just again, it is fascinating to see that exxon would be in this position. >> amazing, with the shareholder-owned 0.2% virtually nothing. 40 million bucks, obviously did have support, significant support from calsteres and the like and the next part of the story is what the response will be from darren woods and he joined us in the recent weeks talking about what he is changing at the company and the track that they are going down now, and it will be interesting, in terms of

whether he is even more responsive now, and/or, i shouldn't say responsive, changes even more, in terms of what they've been following. >> and how this fits into the bigger picture around energy prices in general, as we continue to have this inflation debate, carl, because you look at this, you look at production numbers going down in the u.s., we can talk about opec as well but also the inventory declines and the global economy reopen, and you've got to think all of this factors into longer-term, more supportive dynamic, for energy prices as we have that conversation about higher prices in general in the world. >> yes, and some worries about real shortages and super cycles in the traditional energy in the near term as we try to turn obviously a massive shift and migrate to a more electrified, for example, global economy. we'll take a break here, guys. futures are down a little bit. as we said at the top of the show, we've got the do you at the highest since may 10th, s&p

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a look at wall street bets, reddit meme names, pre-market highs we said earlier was $77, giving up quite a bit there, as they do sell at 11.5 million with interesting language in the 8-k, it is no coincidence that some of the meme names have rallied as crypto collapsed. more opening bell and "squawk on the street" in about five minutes.

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principal. for all it's worth. as we countdown to the opening bell, let's bring in our senior markets commentator mark santoli back at the big board this morning, mike, looking great and we can't wait to join

you down there in a couple of days. >> yes, all systems go here, carl we will have it all waiting for you. >> i did want to ask you about sort of the sleepy action that we've seen last two sessions, five sessions, or so, the open to close swing has been no greater than about 19 basis points >> yeah, it's been uncommonly calm for a while right now, in fact, you go back six weeks we were at these levels, i think the big debate was, well, is this kind of a waning energy, in the market, meaning like the top end of the trading range, or is it just kind of regrouping and gathering up strength for another push higher. it's not been clear. i think it was like 55/45 probability that it was, maybe gearing up to break higher, just because breath has been good and because you have more stocks going up and down and obviously today might challenge that idea. >> do you think the meme story has changed at all, given that

it's clearly evident now that amc is going to be looking to leverage whatever action they get to the upside from that community? >> yeah, i don't know if that specifically is going to be the thing that changes it, but when stock goes vertical like this, and pile on tens of billions,i will get unstable. the options volume is too much all of the friction about the hedging and everything gets too crazy, so i do think it's going to be tested today >> all right there's the opening bell some confetti at the nasdaq, breadth not so great at the open david, doesn't that sound of the background noise bring back memories >> yes, memories, and soon to be our present, right, carl >> yes >> as well. >> yes, it's come can. the day is coming for all of us. all of us. yes. amc shares down about, let's call it, i don't know, you know, is mike still there, i see him in the bottom box, mike, the volume in some of these names is

incredible and by the way, some of them start trading at 3:30, 4:00 in the morning, it is a global phenomenon and not just amc, names like blackberry also drawn for the first time in the meme crazy and up 24% you can see it right there but the volume numbers are amazing. >> yes, volume numbers, and i do think what you have is an infrastructure here where you have systems that just, they hunt for momentum, and they hunt for rapid movement and they hunt for what i would call kind of idiosyncratic flows into specific stocks, what that means is for some reason it just erupts and you all of a sudden get tremendous short-term price changes. and when amc yesterday trades over 760 million share, only 500 million exist, it is the same machine, batting these shares back and forth all day in a massive range, the average price paid for amc yesterday was above $50 a share, it traded 40-something billion worth of

the stock, and that's just an intense concentration of action going on right there and i think it's one reason why, i think we should ease back from saying somehow this is purely a short squeeze. 95 million shares were shorted last report. if nobody on a net basis covered, it only accounts for one in yesterday's volume. it's not really what is happening but part of a motivating story that keeps people involved, and keeps people believing that there's a reason why this stock should go up further, even though, even by the company's assessment it has totally become detached from the business. >> and key contacts right there. but i do wonder, mike, the debate is gaining momentum, around how to speak, we can talk about the pockets of speculation or one-off stocks, et cetera, but how it speaks to in general, all of the excess liquidity, in the market right now, in general, and all of the risk taking that that has been afoot, given what we've seen in terms of fed policy and then of course, you layer the fiscal stimulus, on top of it right

now, and what it means for broader market action, especially if we get, for example, either a hotter or a weaker than expected jobs number tomorrow >> i would think, it's part of the backdrop, it's part of how people explain to themselves why it might make sense to take more risk because you do have credit markets incredibly medicated right now, and not only really medicated, strong, and i think it's, you have $1400 checks hit a lot of accounts that maybe did have an immediate need for, i'm on board for the idea that that creates the perception that money is basically cost-less and you can throw it around. and i also think that these things are more hard to explain. the phenomena is not strictly about some kind of quantity of money that's out there and therefore it's going to, you know, spill into these areas when we were in the late '90s bubble, you had, you know, 10-year treasury yield at 6%, the fed was tightening for parts of that starting in 2,000 and

even before that, before 1997, so in other words, you know, i think it just builds on itself, it's a crowd psychology thing, a lot more than it is somehow some rule of nature, about the quantity of money, and you know, i think that that's why it's tough to decide when it's going to start to erupt, and when it's going to stop. and also what's fascinating is the core market is really acting in lock-step with a lot of the macro story. right? you see, when yields go up, financials go up, the industrials are leading, you see, you know, all of these things that are happening that should happen by way of textbook is happening for the vast majority of the market cap it is kind of the side shows that really are the anomaly. >> yes, i mean that's such a key point, mike. and i mean just looking at the market right now, s&p is down about 0.6%, 41.83, and in general, we have been in a tight trading range which i know you have been talking about for so

many weeks now, and i do wonder, because this is something else we've discussed, over the months, is whether we are seeing increasing similarities to the late '90s early 2000s as well just looking at some of the dynamics that are coming to play in the market. >> there's no doubt that there are echoes of that kind of activity where it's, whether it's the individual trader feeling much more empowered than the entrched professionals, whether it's even these formal or inform trading groups they're the virtual equivalent today of the old day trading parlors. they happen online they happen on discord or twitch or something like that that is very, very, a very big piece of the story today that hasn't necessarily been the case in the last decade there are pieces of it but what is fascinating the economy is speeding into some mid cycle type condition in terms of labor conditions and corporate margins and all the rest of it, where as you have the risk taking, and maybe arguably the valuations,

look like they're a little more late cycle so i think it's pretty unusual to have that blend, it's been the case for almost a year now. >> so mike then, what are you watching go ahead, carl >> mike, i was going to ask you about, speaking of the jobs number tomorrow, adp, although obviously has to now come with multiple grains of salt given its record, it is the biggest rise in adp since june of last year and if tomorrow's number sort of ratifies it, i do wonder, is it then clear that powell truly initiates a taper discussion on the 16th and is that what moves us away from 1.6 on the 10-year and away from the 4200 >> i think that is definitely what people are bracing for or poised for or anticipating, that there is an upside risk to tomorrow's number, perhaps, because we also are expecting some payback from what were

disappointing numbers last month. so yes, you have that as a pre-condition. i don't think it means that it's going to change the overall set-up in powell's mind or in the committee's mind, in mid month, because they've kind of been expecting some strong job numbers and still be able to say we're still not quite toward our goals but without a doubt they have been laying the ground work with some members out there in the lead saying of course we have to acknowledge this is actually happening in the economy. of course we have to acknowledge overheating in areas like housing and seeing if we have to start to discuss a taper last night's move, very much off to the side, but with the fed deciding to let some of the corporate bond holdings roll off right now, i'm not sure it was intended as a prelude, but it's going to create the sense out there that they are at least kind of examining why they're doing what they're doing and whether it still makes sense in the current environment. >> yes, talking about, talking about tapering, is the way i continue to see it surmised. mike, more than halfway through

the first half, "squawk on the street" and we still haven't talked about cryptocurrency. let's bring that up. bitcoin, ethereum, doge coin getting all of the attention again given what we've seen in terms of being abld to be traded on coinbase as well. that in and of itself goes back to the whole meme debate that we're having >> it does it is sort of indecipherable how much is migrating between the two and hard to run from the fact that crypto with the recent highs, it did seem to coincide with the restart of some of the meme stuff i think you're still looking at charts on something like bitcoin where everyone is saying, and charts are the way people mostly kind of assess what is happening there, and say, it still is kind of broken and still have to prove it can get back up toward 50,000 or something like that. before it changes but you're going to trade around that range all day, and then the coinbase doge thing yesterday, you know, a nice little excuse to sort of re-start that game as well >> we did want to point out, the

two leaders on the s&p, which as morgan noted is down right now, are gm and ford, we got that news from phil lebeau earlier and taking a look at gm and ford, gm shares in particular and the company says its first half results will be significantly better than prior guidance and also say they're optimistic about the full year and of course, we talked a great deal about the semiconductor shortage in particular, and what it means for the automobile industry, and gm says that it's ongoing efforts to prioritize semiconductor usage, its success engineering solutions that maximize the utilization of chip, as well as the pull-ahead of some semiconductor deliveries in the second quarter are one of the reasons why, or key reasons why it expects now the first half financial results will be significantly better than the first half guidance that the company previously had given the marketplace. you can see the response there, ford shares for their part also up about 2% right now, morgan, both vastly outperformed the

shares of tesla, the larger automaker by market capitalizations which is down about 15% so far this year >> it should be interesting to see what all of this does to used vehicle prices, too, because mike, as we've been talking about, that has been a big propeller of what we've seen in terms of the macro inflation data, the pricing reads that we've seen in the last couple of weeks as well. you start to get some of the production lines power back up to full capacity, more acquisition of semiconductors, and some of the other necessary material, to think more auto,s, you would have to think that that will help create a more transitory, to use a fed word, transitory impact on the vehicle market >> yes, if you looked at the angle of that chart, of used car price, the used car price in zechl back when it was feeding into the cpi last month there's no way that is sustainable and the question is how long until it comes off and implicitly, gm

flexing the sly supply chain management and a 100-year-old company and we've been around and we can figure this out and there is a lot of talk about double ordering and everyone knows there is shortage and what does it do for inventories down the road for clips across the industry so a lot of those things are inter-played but to your point, morgan, i agree that it's been hard so far to refute outright the transitory idea that we did have these calendar quirks, the easy comparisons, and all of the bottlenecks. >> mike, got to ask you about the airlines we did get some encouraging qualitative guidance out of delta and american today, about q2, load factors, revenues, the guidance out of delta, mike, totaled 6 to 6.2 billion is below and i do wonder whether or not you think that accounts for some of the weakness today. >> i would say it probably does account for it you know, it's been very

difficult to handicap what's already based, baked into this group. something like ual, enterprise values back to pre-pandemic highs, traffic, and that's been the inter-play for a little bit, a little while now and so anything that says that things are not actually accelerating from here, and maybe it's going to pinch, you know, we don't often talk as much about fuel prices when it comes to airlines and as much as we used to but it can help and obviously oil is at the highs as well so you know, on a day when i think you are looking for a little bit of a give-back, it makes sense that, you know, the airlines and transports might be in for some color. >> halo effect bringing some of the retail names down as well on the heels of that. mike, as always, great to see you down there we are all a little bit jealous. we are up to 11 days of alternating gains and losses on the nasdaq let's get to rick santelli hey, rick. >> good morning, carl. so much going on in the market we all know about the corporate

bond program that is going to of course be shuttered and the bonds sold so much to talk about. if you look at a 6:00 a.m. eastern start to 10s, you see all of the volatility, and both at 8:15, on adp, a big number and of course at 8:30 eastern, when he would not only had initial claims drop under 400,000, but we had a very positive revision to continuing claims, post covid low if you look at a week to date chart, it's pretty obvious that we are sliding a bit but this definitely pulled us back up and one thing i can say with quite certainty, if you look at a two-month chart, it's like pointing right to 160 on the right side just literally pointing there. and that is a key technical area call it home base. call it where the market would like to come to rest but that's where all of the volume seems to be and ultimately, markets move to where the volume is the highest. and as they start to move away from it. you can get moment tum that's the point we're waiting

for and i will tell you, something happened in japan we need to talk b the bond market is basically a shadow of its once vibrant self. trades by appointment only and to that end, their sovereign secondary market didn't trade at all yesterday, tuesday, and hardly traded at all on wednesday, and today, they had an auction and basically nobody showed up. the weakest demand in five years. so the primary market is a downer the secondary market is almost nonexistent. and their currency, the dollar yen is a two-month chart, the dollar is doing very well and you can see four years, how strong the euro is against the yen and the dollar index is trying to make a comeback but do remember the euro figures highly in the valuation, the yen does not carl, back to you. >> rick, thank you very much rick santelli. still to come, from theater openings to the amc frenzy a lot to talk about with the ceo of imax, richard gelfond coming

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18 minutes into trading but we already have a halt, we did have a halt that just lifted on amc entertainment, that stock is down 22% right now back under $50 a share we've got more "squawk on the street" on the other side of this break as we continue to watch the meme trading. don't like surprises? [ watch vibrates ] proactive notifications from fidelity keep you tuned in all day long. so when something happens that could affect your portfolio, you can act quickly. that's decision tech, only from fidelity. i became a sofi member because i needed to consolidate my credit card debt. i needed just one simple way to pay it all off. it was an easy decision to apply with sofi loans, just based on the interest rate and how much i would be saving. there was only one that stood out and one that actually made sense and that was sofi personal loans. it felt so freeing. i felt like i was finally out of this neverending trap of

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the other day, the ceo was brilliant. he's growing the company, he has shares that he can offer to be able to really buy pretty much any theater in the world or any chain, and i think he's going to do that, adam is a fantastic manager. but what he really knows how to do is run a stock. and it's simply brilliant. >> that's cramer on tech check talking about amc, and the prospect or likelihood of them eventually buying a rival chain, like imax, to respond to that let's bring in rich gelfan, always good to see you, thanks for joining us. >> it's great to be here, carl,

thanks for having me >> so we're in some -- i was going to say, we're in some extraordinary times. i'm sure you heard that bite, wha what is your reaction to that? >> imax isn't for sale a good friend of mine, we talk all time jim made an excellent point, he has all the cash and lots of things to do with it no one has talked about who benefits besides adam, and amc, but they're one of our largest partners in the world, we have a backlog of a hundred theaters set to open with them, now that they're flush with cash, part of reopening is renovating them that's all really good with imax, their former parent company sold their stake they're our biggest partner in the world in china that's good for imax, adam said publicly that he may acquire

other theater chains i can confirm he's looking at smaller things to do and we're inc included in that, putting imax theaters in some of those complexes he's looking at. whatever is going on in the world, whether it's rational or not. i know the one beneficiary has been i max, and shareholders. >> i know you were on squawk a few days ago, and talking about a quiet place 2. f 9, jungle cruise, i wonder at what point do you think we will have a enough sign posts to know what summer box office is, in fact, going to look like. >> i think we have enough, carl, to know globally what it's going to look like, and as i've said, you know, before on cnbc, when you look at the openings in places like china and japan, and korea, it's consistent with previous years when things were healthy, and in some cases, like

china, chinese new years was 30% up from its record year so we have those data points unfortunately north america was slower to reopen, and as you point out, there's a lot of good films to come, but most of those films really come out in the third and fourth quarter so i think if you're going to look at comp on a per film basis, like memorial day weekend, was the best opening since before the pandemic, we're seeing a trend, but if the request is really when do things get back to normal in north america, i think it will be more like the third and fourth quarter, that's when we have bond, top gun maverick, dune, a couple of marvel films, that's when it will really be back to normal. >> richard, it's david i was listening to you list the ways you benefit from amc, obviously maybe you want to become a meme stock too. but when you question whether it's rational, there is no question, is there here,

richard, this is irrational, you know your way around fundamental valuation, there's no possible way you can argue this company was worth at the open today, $30 billion, that's not enterprise, that's just equity value. >> so david, you know, i have known you for a long time. we're not 25 years old we do know what traditional methods of valuation are and that there's no question, this does not fit into the traditional valuation box, and i give adam credit, this morning, he even said that in his own statement, however, it's a new world, which i don't pretend to understand and there are different factors and myself on my own investment side, i have missed a lot of trends because my older ways of thinking about these things but you know, there are new models, and i can't opine on how they fit or not. >> come on, richard, older ways of thinking about things are the way you thing about multiple to earnings, multiple to revenues,

those are the old ways but those are the ways you value a business if you were to consider buying it. everybody who is buying a share is in fact, doing, i don't know, i mean, all right, i'm an old guy, you're an old guy, so what, we don't get it anymore? >> maybe we don't get it my stepson said to me at the beginning of the year, you're an idiot, you should put all your money into tesla, and i said you know what, it's had sup a run. it trades more than auto companies put together, there's going to be competition, and he looked at me and laughed and shook his head and said you just really don't get it. so, you know, and what percentage gain did i miss out on, david. i can't disagree with you based on traditional valuation, matrix, it doesn't make sense to me, but the market is in a different place right now. >> well, you were directionally correct, rich. ford has well outpaced tesla since last july, but certainly year to date rich, we look forward to a lot

more fconversations about these amazing times in your industry great to see you thanks. >> thanks, carl and david. appreciate it. >> we'll have a lot more on amc and the markets when we come right back don't go away. at cdw, we get that even as we return to the office, collaboration is still evolving. it's time to make collaboration better, seamless, secure. with cisco webex orchestrated by cdw, get ai enabled automatic transcription and translation, and easily share documents, notes and even whiteboards from anywhere. so even if you're not in the same room, you can still say, "go, team!" for evolved collaboration, trust cisco and it orchestration by cdw, people who get it. wondering what actually goes into your multivitamin? at new chapter, and it orchestration by cdw, 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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good thursday morning, welcome to another hour of "squawk on the street," i'm carl quintanilla with david faber and morgan brennan markets taking a bit of a breather after three to four week highs we've gotten a lot of data, claims, adp, and ism services. let's get to rick. >> well, carl, this is one of those numbers where i so enjoy bringing it out. the service sector is the biggest chunk of the u.s. economy and this particular number started in july of 1997 and its current read for may is 60.0 it's never been higher the all time high was in march at 63.7. the 64 usurps that so if you're looking for the reopening to gain horsepower, here's one number that the equity market

should really pay attention to morgan, back to you. >> rick santelli, thank you. we are 0 minutes into the trading session, and we are going to get to amc in just a moment here are three other big movers, we're watching today we're going to start with gn that's getting a boost after saying it expects financial results for the first half of 2021 to be quote significantly better than forecast earlier that stock is up nearly 4% right now. plus, tilray flying high, rolling out new estimates following the completion of its merger with afria. and cyber security firm fireeye announcing the sale to symphony technology for about a billion bucks. you can see the shares are down about 14%, carl. >> we got to pay attention to amc, we have gotten a halt on volatility christina is looking at some of

the madness and pain today hi, christina. >> it's just a big question, how much pain can one person take. clearly a lot if you're a short seller of meme stocks. ten of the most shorted stocks bought losses to the short sellers to the tune of $5 billion in one day. amc for example closed up 95% higher yesterday causing 2 $2.75 billion in losses for anyone who bet the stock would fall, and that was just yesterday. blackberry caused about $681 billion and it's the most active stock on the new york stock exchange, and game stop caused about $414 million in losses, chump change, right, and despite the rally in the meme companies, the short sellers continued to hang on by boosting their bears positions. according to goldman sachs short selling positions continue to climb for nine straight weeks. short interest hovered around 20% on tuesday

you would think maybe they would dro drop it. no, short interest was 19% on wednesday. still going strong there's a web site titled high short interest.com where retail traders frequent along with lordstown and nikola, all stocks that pop nearly 20% the yesterday. these retail investors are cheering the gains with high pressures -- hash tags, like amc, the relentless winning streak continues to draw blood for short sellers. >> occupy wall street, i haven't heard it used that way that's one blast from the past right there. christina, thank you. after leading the meme stock charge, amc down after selling off 11.5 million of its shares the s.e.c. expects to release a report assessing the retail investment boom. in the meantime, though, here to comment on what we can expect on that regulation front amid everything we're seeing in terms of trading activity, the former

chief of the s.e.c.'s office of internet enforcement, john reed stark. thanks for joining us today. >> thanks, nice to be here morgan. >> we were talking about it in the last hour, thefact that there are arguably similarities to the late 1990s. i want to bring that up to you given the fact that your tenure was from 1998 to 2009. have we seen this play book before maybe not in terms of social media but the chat rooms and the role it played in day trading. >> you remember the chat rooms, yanlt i can't figure out if i'm experiencing nostalgia or ptsd it's crazy the way people can band together. in the '90s and early 2000s, it was more about spreading false information than bonafide information. in this situation i don't know if anyone is being accused of spreading false information. they're saying hey, let's get together and buy this stock, and

we'll drive it up and that momentum investing has nothing to do with the traditional investing that david faber was talking about earlier that i'm a big fan of there are people that do it. they hear that warren buffet is buying apple stock so they buy apple stock. that might be a good plan, a good way to invest. >> the more volatile some of the stock moves are, do you think the more the s.e.c. feels compelled to investigate, gather data, and build some sort of case, and if so, what would that case be? >> absolutely, when these kind of headlines occur, there's a team of s.e.c. enforcement people investigating they will probably put the information into the one they have already been investiinvestigating with the game stop activity. they'll look for false statements the way the s.e.c. can bring statements is find somebody uttering some sort of false statement amidst the chaos and bedlam of the reddit boards, i think that's sort of trying to find a fire fly in a tornado

i don't think it's a very easy job. i had to do that when i was chief the at s.e.c it's challenging you might find people promoting the stock and are paid to promote the stock and not necessarily disclosing the nature and amount of the compensation and interesting this morning, what caught my eye was amc's disclosure where they said, look, we don't think anybody should be investing this way we don't recommend that people buy our stock. that's straight from the warren buffet play book he used to write this his letters, i wouldn't recommend that anyone buy our stock, including anyone in our family at the same time, amc is offering securities and telling the public, essentially that these are good securities to buy, with lots of risk disclosure that might also catch the s.e.c.'s eye, and then also with any regulated persons, regulated investment adviser, a broker or someone like that is participating for their own gain sometimes they have higher fiduciary obligations. >> we have already, it's david,

and we have already come through the game stop phenomenon a number of months ago we assume the s.e.c. took a close look obviously you had some things involving robinhood there, overall on settlement questions, but overall nothing i'm aware of at this point that came out of that specifically. maybe it's just too early. >> no, i think you're absolutely right, david and that's what i think most people predicted who really kind of followed the s.e.c. or worked there. they have to go through these investigations they also have this really terrific whistle blower web site, and anybody can e-mail them anonymously sometimes you get a whistle blower or get someone with information. they're looking to find a case, and certainly it's a little different right now than it was at game stop because we have a new chairman, not a new director of the division of enforcement but we have a new chairman, and hopefully this chairman will get active

i worked for six or seven different chairman, and i think arthur levitt did it best. he walked around the country telling everybody how to invest, how to look at the value in investing. how to look someone in the eye when they give you a recommendation, and hopefully someone at the s.e.c. will start saying that again, both with game stop, and i think there are a lot of parallels to crypto crypto to me is a lot worse because in that situation, it's the essence of ransomware, the country is fall aging apart from ransomware, and they think someone else will buy it and make the price higher. >> that's part of the story here i would say, john, you know, it's funny because another thing we know the s.e.c. is looking at are total return swaps which takes me back to archegos. defying all fundamental reasons. this was a highly sophisticated

investor engaging in behavior we're seeing from the reddit crowd. >> you know, and i remember being at the s.e.c. and looking at all of those kinds of situations, and the s.e.c. in these situations, they need to find a false statement, somebody saying something that's false or misleading people by not saying something that's true. and again, taking it back to crypto, you have a lot of people promoting crypto, but they're undercutting the privacy of their documents, which might have 30 or 40 pages of risk disclosure i think these cases are tough to build. the s.e.c. has not brought many cases, short sellers, for spreading false information. it's opinion relook at this stock, and rethink this that's a role, an important role that short sellers play in the market. >> yeah, you just made a couple of comments about crypto i started to get a sense about where you stand on that. i mean, i realize it's categorized, classified as a commodity, it falls into the cftc as it current stands.

that said, the s.e.c. is taking a closer look at that, too, especially when talking about the possibility of a bitcoin, etf. what do the rules of the road need to be around cryptocurrencies to get someone like yourself or maybe more institutional investors, for example, on board? >> it would take quite a lot, morgan first of all, the places that these cryptos trade, they have no transparency, no record keeping requirements, no auditing by the s.e.c., the basic registration requirements that really make investing in the u.s. so terrific, and such a wonderful place for people to seek capital so that's a huge problem, and you know, the volatility is unbelievable and also, what a lot of people miss is there's no utility in bitcoin or any other crypto, the only reason people own it is hopefully it will go up because someone else will buy it in the meantime, the only way that ransomware succeeds is because of crypto. we're paying upwards of 5, 10,

higher amounts of millions of dollars in terms of making payments for ransomware, and we have seen it with hospitals in ireland, with the colonial pipeline, now our food, this morning, reported our transportation so ran somsomware is hitting everywhere, all collected in bony, there's no way they're going to get caught. you're enabling with game stop and amc you're not hurting anyone, but with crypto, you are really hurting a lot of people, and that sort of risk, i don't think is a good one for society. i still haven't learned, and i have been studying this stuff very carefully as a duke law professor, and also as a consultant who works with a lot of cryptocurrencies, exactly what the benefit is to individuals that outweighs the risk that it's causing to our society. >> we could just dedicate a whole extra block, a whole extra segment to the discussion around ransomware in the meantime, thank you for joining us and sharing our

insights, appreciate it. >> anytime great to be with you guys this morning. we are getting some news out of twitter, and for that, let's go to julia boorstin. >> twitter is unveiling its long awaited subscription offering, calling it twitter blue, and while it says its core service will always be free. they say this is designed for the people who use twitter most. featured include the ability to undo a tweet after you've sent it, a reader mode to make it easier to follow long threads on twitter, folders to organize, save tweets and what the company calls other perks, app icons, and color themes for the app twitter blue's first iteration will roll out today in australia and canada, for the equivalent of 3 u.s. dollars a month. no word on exactly how much it will cost in the u.s. when it does become available here, and the company says it will add more features perks in response

to user feedback on the app. now, this all follows twitter ceo jack dorsey saying last july they were looking at subscriptions as a way to diversify revenue. dorsey said they see a world where subscription, as well as commerce is complimentary to the company's core advertising business guys, back over to you >> you know, julia, so this has been talked about for a long time, and already a lot of the response on twitter has been only twitter would charge you $3 a month for what some argue is basic functionality, the ability to edit a tweet. it's not like the advertising market is in a down trend, what does it say, do you think, that they decided to charge >> look, there are a bunch of different questions, one is the fact they're charging for this at all you and i have talked about the impulse to want to undo tweets or delete tweets people may be interested in that who may not be willing to pay $3 a month. how many people are in the core twitter base that they would be

willing to pay to have that additional functionality also reading threads, et cetera. these are people on twitter all day long, including a lot of us here at cnbc that use twitter that much. i think in terms of the decision to charge, this is something they have been talking about a lot. you know, it's not just about undoing tweets it's this idea that they want to create multiple different subscription services. they could have a service where you can get extra content from people creating a lot of content on twitter, and they have talked a lot about commerce i don't think that this necessarily has to do with the advertising market as much as it does the need to stop being so reliant on the advertising the other thing i would point out, carl, in terms of reliance on advertising is twitter has mostly been a brand advertising business, and that is the type of advertising that suffered during the pandemic. they have made a big push to invest in their direct response advertising. that's where you can click, get more info. it's not about just seeing an ad for a brand like coca-cola

i think they really understand that going forward, if twitter is going to massively grow its business, it needs to be about a lot more than brand advertising in particular. >> yeah, that is interesting shares back to 58 1/2 is going to take you back to late april, fascinating move, finally, julia, thank you julia boorstin, as we fwgo to break, take a look at road map for the next hour, including the madness of amc, already halted once in early trading. and united airlines is going super sonic, we'll explain what that means. and venturing to venues, no, venus, there's a little misspelling there. nasa administrator bill nelson is going to join us later this hour on all things space we have a lot more "squawk on the street," dostraight ahead don't go anywhere.

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joke cryptocurrency doij coin - dogecoin on the move, add dozens of more coins to their platforms. joining us to discuss is steven erlich, i wonder if you can describe doge where it ranks, and whether or not it's truly taking away share from other

coins. >> thank you for having me this morning. it's one of our top counties, our second most popular in the last week, and in the last 24 hours, it's the most popular coin we have of people buying, a little rotation coming out of bitcoin and ethereum, and going into doge. but it is our number one coin in the last 24 hours. >> do you think it's a unique coin given its origins, the way it's been marketed what is original about it, given all the other coins that you have to keep track of and add? >> yeah, look, i think there's, you know, a definite possibility that doge can be used in a payment mechanism down the line as we expand this marketplace more and i think people are seeing that little bit of opportunity and using it there you know, it's cheaper to move on the protocols, and easier to move, so i think there is that opportunity that people are seeing that it's a possibility that this can be used in commerce down the line here.

>> a guest we just had on, john reed stark who talked about the fact that bitcoin is used for ransomware and other than that, many of the cryptocurrencies don't necessarily have a utility or can be valued in that sense obviously this is a hot topic for debate, and we've heard both sides of it. i want to get your take. >> yeah, look, i think there has been elicit activities using cash for years, too, so i understand the side of the argument that it's used for ransomware, those become something that becomes really good media talking points. look at ethereum on its own rite as the smart contract now being used for nfts, and i think there's opportunities. we're taking a market that was say baseball cards that was physical and turning it into nfts ethereum has use cases some of the other tokens behind there, too polka dot is similar to ethereum, it's a smart contract that can be used and is also

cheaper because the guests we used to move are much cheaper, and an algorithm is being used to develop securities. you're starting to see a lot of utility across the way i'm down in miami for the bitcoin conference and meeting a lot of people, and starting to see projects come out on some of these protocols. >> i realize we're still in early days, and there's a lot to be decided in this industry or this asset class, i should say, more broadly, but in general, we can talk about some of the crazy moves we have seen, for example, dogecoin or bitcoin or ethereum, but who's actually making money on this in terms of the infrastructure, the different companies that are involved, what does that look like right now, especially given the fact that we do have these pretty hefty fees attached with trading? >> look, i think we've just finished our first quarter we had a really nice quarter at 50% operating margins, highest revenue ever the trading firms are making money, but i think individuals, we are seeing a lot of

individuals who got in early, retail investors, because we're a retail platform are making money on a lot of the trading as well i think there's a mindset that retail might be losing our retail consumers are net positive, and we have created a lot of wealth nfor consumers, using cryptocurrencies, and we bring up doge a lot. is the opportunity for people to earn interest on the coins that we offer, and, you know, people are gaining wealth that way, too. not everybody, i know there's the mindset that the market has been done, consumers are losing money, but we're seeing a lot of positive accounts and positive value for consumers. >> yeah, and the carry on some of these coins is something that we have tried to remind viewers about. it's not the main story but it is an edge that you can find if you're clever enough we'll continue to watch it with your help. thank you so much, great to see you. >> thank you for having me as we head to break, watch oil. that's climbing higher again touching its highest level since

2018, earlier in the session wti crude spifalecicly we're talking about. we'll be right back. stay with us this is wealth. ♪ ♪ this is worth. that takes wealth. but this is worth. and that - that's actually worth more than you think. don't open that.

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j.m. smucker topping estimates this morning our sara eisen has the break down for us. sara. >> good morning, david, and the stock is reacting positively we're not seeing the stocking up of groceries like we saw this time last year, but people are still eating at home that's the story with smucker, and it was a big beat, especially on the bottom line, some highlights from the quarter, coffee, this company owns folgers, which has gained new younger fans during covid-19, cafe bostello and dunkin are growing double digits uncrustables drove a beat overall. pet was a weak spot, which of course was a little bit surprising given the pet adoption which we had seen skyrocket, but the ceo pmark smugger told me last year at this time there was a huge stock

up on pet snacks and he's bullish on the category. the head wind on this company and many others on consumer packaged goods is higher costs here's mark smucker earlier this morning. >> we have been seeing inflation over the past year across the board, and we view that as manageable this is something we deal with on a regular basis our products in many cases are based on commodities, and so we have been very successful over the years in ensuring that we can pass along price increases to our consumers, partnering with retail customers to do that in the most equitable way. there have been times we have been able to take price declines as well but in this inflationary environment, it does impact everybody, but we do believe that managing that inflation and passing along those costs in a realistic way is doable.

>> the consumer is going to pay more smucker calls it manageable. i asked him if it was going to be persistent or lasting he said it's always hard to tell when it comes to commodity inflation. but one thing that smucker does see lasting is eating at home. the company giving upbeat guidance he says driven by the hybrid work environment, the fact that as people are going out more, they're still often working at home, which means breakfast and even lunch at home also, he's seen a lot of people invest in new coffee machines, which gives him hope that the category will continue to rise, forecasting net sales from 2022 to fall to 2 or 3% that was better than analysts were looking for we'll have much more on our conversation with where the consumer is going, and how this company is planning to keep the big brand momentum up given the fact that we are coming out of the either side of the pandemic later on closingbell

we'll see you then >> that's fascinating, in fact, starbucks and mcdonald's are at one week lows on some of that news we look forward to that. thank you so much. our sara eisen. >> take a look at meme stocks as we have to monitor them every few minutes or so. amc down to 51 down session low was down 266 d y c s wreanasouaneee' well off of that. we're back in a minute ♪ maybe i didn't love you ♪ ( ♪♪ ) ♪ quite as often as i could have ♪ we're delivering for the earth. by investing in more electric vehicles, reusable packaging, and carbon capture research. making earth our priority. i thought i'd seen it all. ( ♪♪ ) i'm evie's best camper badge. but even i'm not as memorable as eating i thought i'd seen it all. turkey hill chocolate chip cookie dough creamy premium ice cream and chasing fireflies.

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welcome back i'm rahel solomon, and here is your cnbc news update at this hour israeli prime minister benjamin netanyahu is calling on the country's parliament to vote against what he calls a dangerous left wing government coalition of parties from across the political spectrum is poised to take power. they have agreed to make the leader of a small far right party the new prime minister. in wilmington, delaware, an hour long standoff continues, s.w.a.t teams surrounded an apartment when a gunman opened

fire on police injuring three of them they have been hospitalized and are in stable condition. the tokyo olympics now just 50 days away, and while the organizers say that the games will continue, there are widespread doubts because covid continues to be a significant problem there. many local governments that had planned to host foreign teams are now backing out. and in a tweet that starts with we have to say it, the fda is warning that people who have seafood allergies should not eat cicadas, because they have a family relationship between shrimp and lobster, and some people do eat the bug. recipes have been showing up on the internet morgan, you are up to date i'll send it back to you. >> that's evolution right there for you. >> not my thing, but who are we to judge. >> to each his own, right. rahel solomon, thank you. shares of amc are all over the map. after announcing selling more than 11 million shares, this is

amid the trading frenzy we have been talking about in general in recent days. shares down 19, almost 20% right now. amc cautioning investors in an 8 k filing julia boorstin joins us with a reality check. julia. >> well, morgan, what an 8 k it was, as amc filed with the s.e.c. to sell up to 11 1/2 million shares from time to time, the company warning quote, the recent volatility in our current market prices, reflect market and trading dynamics, unrelated to our underlying business we caution you in against investing in our class a common stock, unless you are prepared to incur the risk of losing all our a substantial portion of your investment. this comes after the stock gained 95% in the trading session yesterday as the company raised $230 million through a stock sale, and said it would use those funds for potential acquisitions and upgrading its theaters, as well as paying off

debt ima x's richard gelfond said some of the money may goto upgrading theaters, in addition to buying smaller theater chains, and those would be an attempt to change the reality of amc's challenged business. it operates 585 theaters domestically, 97 internationally, and loop capital markets says amc is worth just $1 a share if valued on fundamentals, warning that theoretical admissions have been declining since 2002 while the number of screens has increased by 15% all of the theater chains are facing new challenges coming out of covid the studios have negotiating power around contractual terms that could damage theater changes, new windows of when films are exclusively in theaters, and simultaneous, direct-to-consumer release that all happened during the past year of the pandemic.

i max's says the price doesn't make sense question is when amc starts trading in line with fundamentals, and what amc's new ceo does with the new cash in the meantime >> that is a key question. thank you. movie theater companies, some of the stocks of them are mixed. amc as you saw, is down on the sessi session. more on the fundamentals and challenges, let's turn to the ceo of the marcus corporation, that company operates the 4th largers movie theater chain, and hotels and resorts in eight chains nice to have you with us, and nice to talk fundamental of your business, coming out of the pandemic, what are you seeing in terms of attendance, people's willingness to go back and sit in the dark with strangers >> you know what, it's very positive, and we started, you know, really started this weekend in earnest with "quiet place 2," i was there. it was great, the lights went

down all were together, watching the movie in a dark theater in a differentiated experience. home is great, but we're in a battle against the couch we have a whole -- we bring a whole set of weapons into that battle that are much different, and you're not looking at your phone, you're not looking at your tablet, the lights are out. you've got a big screen that's enveloping you you've got sound or in the quiet place, no sound. i mean, it was, you know, you can't replicate that experience, and so that's what we -- that's what the studios see in theoretical, that's what we see in theoretical, you know, it has a place in the ecosystem i think this choice of theoretical versus streaming is a false choice because it would be like the deli owner saying, hey, i just invented pastrami. let's can corned beef. >> i understand part of the ecosystem. is the ecosystem as large as it was, that seems hard to argue,

particularly the windows for the showing of the movies in theaters like your own as opposed to putting them on there directly, direct to consumer platforms that have become so important to their growth. >> you know, look, movie studios have been putting, you know, movies direct to their consumers not through their platforms but through other platforms for years. that's nothing new streaming is more the linear battle than it has against theoretical. will windows change things sure on some level, but you know, when one door closes, one may open as certain windows shrink, other content providers might show up to the party, and want to release their films in theaters where they can highlight their product in a way that, you know, you think about it i think a lot about what's happened with tv, and it's really hard to get those what are we all going back to, "friends," and "the office," where everybody had to watch them all at the same time, and they had their own highlight in the theater business, we can only play a limited number of products you know, sometimes unlimited

choice is its own, you know, punishment in a way or prison, you know we have limited choice, you can only watch a certain thing you can see it is highlighted, you know, for the studio to highlight their product, and ultimately the streaming service. movies are not widgets you know, like, it's not like you can change the flavor of the tooth paste and get more customers there. if somebody wants to see star wars, they're going to disney plus, if it starts in the theaters and then becomes exclusive on disney plus or "quiet place" exclusive with paramount, or f9, your product, exclusive on peacock, the customer has to go there to see it it's not a substitutable product. >> that's fascinating. the discussion, greg, i wonder how you think the pandemic is going to change the face of content itself by that i mean historically

movies, and especially summer films were meant for teenagers and kids we have vaccinated the population from the oldest first, so does that mean that studios on the margin at least will be looking to make content that will appeal to an audience that has been vaccinated and might be older >> well, look. that could be. i think it's a short-term discussion because, again, the pandemic will go away eventually, and the population, enough will be vaccinated and we'll get past this period of time in the short run, might they do some of that yeah, but we have been talking about the demographics of the country getting older. putting movies that appeal to an older crowd out into the theater is not necessarily a bad thing for us. >> greg, it's morgan, marcus has a hotels and resorts business, too. i'm curious what you're seeing on that side of things amid the reopening activity right now, especially on a morning where you have the delta ceo, ed bastian talking about a renaissance of business travel

in our country, not just for the airlines in general. >> yeah, it is -- we're seeing positive, you know, a lot of good stuff, even beyond some green shoes, and in fact, yesterday, my hotel team was in the office saying, you know, this week, you know, we have been booking group business, the way it's worked is the leisure customer came first. when you can make your own decisions and get out of your house because you have been locked in for a long time, you can travel, and the leisure customer came back first, we started seeing it all over last year into the summer, and now what comes next, the group business, and the group business, where it overlapped in heat i leisure, it was the wedding business business groups outnumbered the weddings, and that was a real turning point. we're getting back to business it was on your air yesterday, and we're starting to see that turn people need to get out you cannot replace, you know,

human contact and if i could make a bigger point about society, and as it relates to theaters and hotels, and offices and this is a little high level, but, you know, our bonds of social trust have been warned. and i believe in my neighbor we may disagree, but i believe in my neighbor, and we're all going for some common goal, a common good of our community, but that's been worn away over years, and the pandemic has maybe accelerated it, and somehow this idea that we're going to all -- and by the way, the benefit of social trust is they have measured it, and communities that have high levels of social trust have, you know, better economic outcomes, better health outcomes, so this idea that we're now going to lock ourselves in our houses, and work all day, and watch tv from our couch all night, and never go anywhere, i don't think that's a good idea for our country, for our communities we need to be out amongst each other and see each other

it's much easier to disagree when you are sitting across from the person than when you're a disconnected head. i guess i'm going a little far out there. but i think it's important. >> i like it probably won't get that much on cnbc today like that, and i like it i appreciate your joining us, greg thank you. >> thanks for having me. as we head to break, dillard's is on the move, trading at a fresh all time high, up almost 3% right now stock has been on tear, up 50% in a month, and on track for the longest quarterly win streak since 2012 we're going to keep an eye on that there'los a t more "squawk on the street" ahead with the major averages all in the red, stay with us. rve relief from the world's number 1 selling nerve care company. as we age, natural changes to our nerves occur which can lead to occasional discomfort. nervive contains b complex vitamins that nourish nerves, build nerve insulation and enhance nerve communication. and, alpha-lipoic acid, which relieves occasional nerve aches, weakness and discomfort.

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united airlines is going super sonic. our phil lebeau is back with the story that i have been dying to get to good to see you. >> hi, carl, this is an interesting story, and one that's getting a lot of people saying, maybe i will be able to fly super sonic. united ordering super sonic jets from boom super sonic, a start up out of defer. this is what it would look like, their rendering of what it would look like. that is the united super sonic jet, what about at overture by boom, well, they have built this or they will build this. they hope to have first flight by 2026, and they expect commercial service, at least they're targeting it right now, by 2029. the big selling point, you can cut international flight times practically in half. this is the expectation from boom in terms of flight times. new york to london in 3 1/2 hours. right now, it's a 6 1/2, maybe 7 hour flight. fran to tokyo in six hours

l.a. to sydney in 8 1/2 hours. this no doubt excites people who want to go get distances, very fast, and cut their flight times down keep in mind that the united super sonic jets, they will carry 88 passengers, and again, they expect to take delivery of these later this decade, if this plane goes through all the hurdles that it needs to clear if it gets certified by regulators, meets the standards for safety and efficiency that united will set out. the big question, guys, what will be the price of a ticket? because if you look back at the history of new aircraft, it always comes down to price doesn't matter if you can go much faster, the airlines almost always will default to price so the price is really going to be the key question here and that ultimately is, i think, going to be the determining factor aside from the technical aspects about whether or not this plane becomes a reality. >> yeah, so many questions that are yet to be answered on this, phil lebeau.

thank you. it's also really face nating to see united striking another deal given the fact they did the deal with archer. they seem to be focusing on next generation mobility in general don't miss blame scholl tomorrow, that's right here on "squawk on the street" at 10:00 a.m. eastern time, carl. >> morgan, when we get to tech check later on this morning, we're going to talk to endeavor ceo ari emanuel, that begins at 11:00 a.m. eastern in about 12 minutes. in the meantime, more "squawk on the street" is still ahead this is the planning effect. if you ask suzie about the future,

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time now for etf spotlight taking a look at consumer discretionary sector the tip of there xly under pressure roughly in line with actually a bit more than decline in the broader market. holding on to small gains overall for the year one of the group 's largest holdings is tesla, which, by the way, calling more than 700 of its model 3 cars sent to china regulators in beijing saying the autos in question produce fld 2019 and have either a seat belt issue or a tire-related problem

that could increase the risk of collision. tesla's recall comes amid increased scrutiny, regulatory scrutiny in china in the last several months and stock down 15% for the year we pointed out are earlier, performance versus ford and gm is, well, quite poor, r foa change. we're back, right after this. ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪

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welcome back nasa announcing it will return to venus for the first time in three decades. picking lockheed martin to help build the aircraft for those two missions and the agency announces planned for future earth-focused missions for a return to the moon through the artemis plam n. all dipresented by bill nelson during the nasa address. he joins us now with more. administrator nelson, thanks for joining us. >> a pleasure. thank you. >> the two new missions to

venus. why returning there now? >> well, it's been 30 years. and as a matter of fact, if you think of the sequence of these planets, there's first mercury from the sun, and it has no atmospheres. then you come to venus, next in line, and it has a prohibitively thick atmosphere then you come to earth and we have a habitable atmosphere then you get to mars, and mars indeed has 1% of the atmosphere of earth so we're going to venus to find out what's underneath that thick atmosphere, and how did it develop so that we understand better earth, and our development, and why our atmosphere is as it is to better understand our planet. >> yeah. we mentioned lockheed martin will participate building those

spacecraft another public/private partnership among the commercial community, or i guess the private sector, and nasa i wonder how you see that speaking to the ongoing evolution of commercial space when it comes to nasa's priorities >> well, there's always been commercial companies involved in space. whether nasa was doing it. like the apollo on the moon. whether it be these very intricate spacecraft that are measuring the earth. all built by private companies that's been the public/private partnership, but we're taking that a step further. we have started the delivery of cargo and crude to the international space station where the companies give a fixed price. they do it, and they own it, and

we've seen that demonstrated very successfully with three flights now of crew to the station with spacex, but that's going another big giant leap, and that's going to be nasa is going to get humans out to sis-lunar orbit, in the orbit of the moon and then the commercial company is going to take the astronauts down to the moon where they'll do the activities. come back and return safely to earth. >> and we know now that it's spacex that will be that commercial company, based on the human landing contract landed recently other companies joining in in terms of conteracts? >> yes that contract is being disputed and that's a legal matter now until august however, there will be many follow-on landings, all of which will be competed.

>> i want to shift gears a little bit there's a lot of focus on space tourism and commercial human space flight do you know a little something about this yourself personally, given the fact that you did go to space in 1986 as a sitting congressman on the space shuttle. what do you think about what it's going to take to get so many people going to either suborbital space or orbital space, giveble the fact we have a number of companies from virgin galactic to blue orbit to space x working on this now? >> look, my hair was dark back then and that was a great trip a wonderful crew, a successful mission. lots of medical experiments that we did, in addition to launching a major rca communications satellite. there i am eating a grapefruit in space by the way, that almost put nasa over the edge, because they were

concerned that all the droplets of grapefruit juice would get out and mess up things, but you saw, i had it contained. to your question -- >> yeah. >> there are going to be a lot of people going into space, and this is good. >> yes. >> not just the government programs, but commercial programs. this is what we need to do -- >> and i'm sorry to cut you off. we are at the end of the show. we do hope you're come back and join us to speak more about nasa's priorities. that's going to do it for us on "squawk on the street." >> thanks so much. >> "techcheck" starts now. ♪ good thursday morning, and welcome to "techcheck. i'm deirdre bosa with carl quintanilla and jon fortt. today another volatile session for amc ashe