now, in terms of how it's reacting to the inflation numbers and will not, until the fed stops canceling market signals. and at that point, we will know, and not until then well, we know whether, so basically said so, and we can say the market is okay, and indicating transitory. andrew, i won't see you for a while and i'll miss you. make sure you join us tomorrow "squawk on the street" is next good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. future does reflect the impact of that hotter than expected may cpi, 0.7 on core, 3.8 year on year, fastest rate since '92 the nasdaq may start the day with a bit of a head wind. the road map begins with inflation watch. the internals a bit lopsided reflecting the prices of used

cars and airline tickets >> we continue to watch the memes. shares of gamestop sinking as it may sell millions more shares and investors are told to buckle up >> plus, covid climate, and china, on the agenda, as the president meets with key u.s. ally, the first big moment on the world stage, since taking off. start with cpi though. we're already digging into the internals, used cars and trucks up 7.3, air fares up 7, jim, areas that are truly transitory or not >> i think that when you take a look at ford, for instance, which has, where you have used cars, used trucks, david, that are actually like going through new prices because you can't get them, the semiconductor issue but also a bit of a steel issue. steel prices just keep going higher and people think that cleveland cliffs is a meme stock, are you kidding me, it is a money machine and sells five times earnings so i think what is in a car, whether it is the aluminum or any of the chemicals, plastics, they're all a

combination of transitory and also bottleneck issues, and i think that the fed has to hope that the bottlenecks go away, because those can go away. and they can make it seem like it is not so bad the bottlenecks, a lot of them wipe out from the, the plastics. >> the ports continue to be delayed. >> ports >> and containers. but it's a real problem. >> it is there's not enough containers. there's not enough truckers. there are not enough people. >> okay. but why is that transitory >> well, because there really will be people when you stop making as much when you don't work, and also there's kind of a mismatch of people, where people who know that they are able to be in such demand that they command a level that is just not realistic. so that your business can't run. that's one of these big issues now. >> this was actually the topic

of a jpmorgan note earlier in the week, relative to other g-4 country, the u.s. policy in covid was to let labor flexibility happen, and people got laid off in ways they didn't get laid off in europe but we might win on the back end with productivity, better job matching, and even though we have to scramble to turn and reposition. >> look, a lot of people went on disability, you're stuck with disability all the time, david, it is a real issue, can i ask you to resurrect that? >> well, no, it was very large, and it was not necessarily counted. what you are looking at? >> is that like vinyl flooring >> what you are talking about? >> i've worn this jacket - >> final flooring? >> this is what happens when we get closer together. you didn't see this close up when we were 20 feet apart. >> mohawk. >> that is a beautiful suit. >> okay. >> mohawk. >> final flooring. >> i'm sorry i got completely distracted. >> i can see that. i was talking about -- >> talking about the suit.

>> david's got something that i've never seen before but i know the price went up have you noticed, david, the commodity price of that went up. >> my flooring >> is it water resistant >> is it not just about the core rate by the way. we are watching food prices. starbucks, jim, we talked about chipotle's price increase and now starbucks talking about short ages of some syrups and some cups. >> the cups are amazing. it's just like everybody seemed to have underestimated how much demand there really is, except for boeing, which has, for 100 planes, they still have a lot of planes left. >> starbucks, they're running out of stuff in their stores. >> they switched to papers >> mocha flavoring that's just transitory also? >> cappuccino. >> is that a demand issue? or is that back to what we're talking about? >> supply chain. >> labor issues. >> labor issues at the suppliers as well. >> they're caught.

only pepsico has come through this so far without a lot of problems they have some problems. but not a lot. i keep going back to that campbell's quarter where everything went wrong. and people didn't want pantry stocking anymore but the prices went up for everything and it was just, i don't know, it was a parade of horribles. >> yes, campbell's, the stock itself yesterday and the ceo there is very good. >> nine month low there for a moment >> yes. >> so on the daita then, jim, wh are the pits yawning on this >> i think that people are really buying into what powell is saying, and by the way, when you go over that actual unemployment number, on friday, people aren't, those numbers say that people aren't making much more i mean those were not inflationary numbers >> the wage numbers. >> the wage numbers. even though they were up, up over 3%. >> but i think that they are still not up enough to make it so powell will change his view

and i think that, i think what you're saying is right i mean productivity, disruptive technologies, will make things up and there were, we have more tonight, about the 20,000 stores that went under, but too many stores anyway. >> you were saying we were over mall for years. >> we're so over mall. we're over-malled with c malls, b malls. >> from the suit to this >> i don't know. >> that's what's up from the floor and tile, floor decor, you got that. >> matthew boss this morning >> how do you get suit floor decor. >> i don't know where to begin with you today. >> is that lumber liquidators? >> there's nothing wrong with this jacket. it's beautiful >> at least you got jeans on that's a step up. >> now you got to out me on this they're going to toss me.

>> poly? pvc? pipes are going up it is going through the roof. >> let's talk about malls where you would not find a nice suit like that. i'm complimenting you. >> simon properties stock and federal relates stock are up >> you got trouble. >> guise, speaking of -- >> speaking of retail, gamestop is a big story today and say as little as possible, that's what was said yesterday >> saynccall, if they were all that short, all of us could be so smart the conference call, david, are you taking it personally >> do i ever take it personally? >> no, never the conference call took about a second to read and it was basically an introduction, they had the guy, the guy from amazon australia, that's a good one, right on the barby, i found it was underwhelming and that's exactly what had to be because ryan cohen is keeping his cards close to his vest and share another five million shares at

the market and not upset the reddit people, this he can absorb that very easily, the s.e.c. is not investigating, we're fine there, and general sherman, march to the sea, george sherman, and then he said goodbye, and so it is just a total nonevent it was the anti-buffett event. i mean they told you nothing and they have no, it is entirely possible they have nothing up their sleeves. >> that's what we kind of wonder do they tell you nothing because they have nothing? >> well, that would be sub optimal. >> yes, it would. >> but they're building up distribution centers and don't know for what, because they're going digital. >> that's what i thought as well. >> that's not the future. >> but what will happen is this. the wall street reddit memes people who truly despise me, even though there are other people in my life that we know, which is an improvement, they have decided without a doubt that they're going to blitz this stock higher and david and i were talking about something that you find very odd, which is that there's stripes, option stripes for 800, i mean -- >> a lot

why? >> not that far away >> but people are speculating that frankly, that the buyers will come back they're not speculating on what gamestop is going to do, they're speculating that the buyers will be here. >> well, the bull case that's being spun out today is, it is a retail startup of sorts. lots of cash little to no debt. they will raise more cash. and half a dozen amazon executives i mean how often do you get a situation like ha? >> you typically don't i mean i think when you look at the background, and see, also the experience with procter & gamble, that's exactly what you want, so you've got very seasoned people who could turn the company into what i wanted, which is a crypto space, a crypto, you know, orders >> you wanted to be a crypto something. >> it didn't matter. crypto something. >> i know. >> that is a great name. >> they weren't listening to your advice. >> this guy six furlongs he's going to win this thing by his name is furlong. >> oh, furlong

>> i'm sorry, yes. >> six furlongs. that's how much he win s you are in fine form today, my friend. >> this is good. >> up and at especially. >> they noticed. they know when you're moody. >> you are well, i love being with you guys >> i am going to make, i'm going to make a jacket like this for you. >> it is highly flammable and i don't want to be even near it. i think david there is a company coming public where you can spray, literally, stuff on it, that will make it so it is less flammable. >> okay. good to know and it's the company chub by the way, the company that makes fire extinguisher do you have a fire extinguisher for that. >> the insurer chub. >> but that's a different one. >> and safety first. >> am i in danger being this close versus the old days. >> this is beautiful fabric. would you stop >> first of all, it isn't even fabric. >> jim mentioned gensler on the

exchange yesterday, a discussion about payment for order flow and the way s.e.c. will get a little more aggressive and he talked about meme stocks. here is what he said. >> the behavior problems that are being put on our mobile apps to trade is, that really the best thing so we're going to take a close look at what's called game-ification, all of these little prompts and encouragements to trade, and how do we protect investors in this new regime >> so a lot of this is we're going to take a look he keeps saying that, in that sort of framework. >> he did just take over, i think that when he says that, i think he's saying i want to know whether there is pump and dump because that's actually illegal. it is not illegal by the way to say you love wendy's it's illegal to say i love wendy's, it's fantastic, it's the greatest, after you bought a position, and then you don't get

into the crowd that's illegal and i think he wants to know whether that's going on. that makes sense to find that out. because that's what people are really worried about is pump and dump. >> he's got a lot on his plate. >> he does >> between sort of more regulation of spacs, between continuing to look at arkansas by -- archegos and the total return, swap market and social media and bitcoin, and crypto, he's got a lot to deal with. >> wow >> right >> i know, he's got -- i had tim massen on last night. >> oh, yes >> commodities futures trading who knows. is it cftc, crypto >> right they do have certain - >> a great point >> 401(k)? the labor department seems interested in that so this thing is going to get hotter and hotter. i think shoe stay away from it >> because i'm flammable. >> exactly >> i got it. [ laughter ] >> take a look at futures. equities at least have not been unnerved by the cpi data which

runs hot lots of calls, lordstown, we will talk united airlines and jim has outsn ysnethgh oketo back in a minute

largest beef supplier in the world jbs reportedly paying the ransom ware hackers who breached their computer networks about $11 million and we have been learning more and more how you manage to claw back some of the money you've gotten or how much you've paid in the first place.

>> i had george on last night, he is the ceo of crowdstrike, and he was saying look, this is ransomware as a service. they're literally, they're really talking about the companies that are doing this and he calls them companies, they're all over the place, they are hitting all of these guys and i thought this was really interesting, they're so sophisticated they even have hr department, the ransom attackers. >> really? >> hr departments. well, that's pretty far going. look, due understand, these are big companies. they go after companies typically that have not upgraded from microsoft 95, or microsoft, older microsoft, they try to find who has that. they don't go after the ones that have the palo alto or crowdstrike and they target the guys who haven't updated. >> and the resumes for revil corp you better have software experience. >> they're on the 13th floor of the empire state building right

along thrush but they are sophisticated, they recruit, they are hr and they go after old microsoft and if they find it, they go. >> this is what george of crowdstrike told jim last night. >> the adversaries are taking a page out of nation-state actors and actually getting in and staging their ransomware, deploying it things like microsoft technology, to actually deploy it, which is just normal systems management, software activating it, and then creating a ransom for the company. so it's become a big game hunting, as opposed to just traditional ransomware >> i was stunned when the colonial pipeline ceo testified this week that his attack was based on single factor authentication. >> yes i mean look, you got to go spend money, okay, you got to go spend money, you got to bring in - >> what are you doing?

>> you got to bring in -- i feel very safe now. >> you got to bring in occupational, crowdstrike, palo alto, z scale, all of these companies, just to be sure that the bad guys say hey, listen, i'm going after the guy who doesn't have any of this stuff these guys have way too much i'm going to go after the guys, the real clowns that haven't spent any money on it, and they know they know, david they know. >> they're very effective, it is not going to stop. at any point >> not at all. >> and by the way, we don't know how many corporations have actually paid and we're not aware of it at all and we got to imagine quite a few. >> but this idea that the fbi cracked it, cracked bitcoin, does it mean that they do it in ethereum, or does it mean -- >> and we run upagainst the issue of corporations sharing with not just the governmental but with each other, so that you can come up with best practice, understand what's going on,

continue to hear from leaders that you need more and more of that >> right >> and so how many, you know, will corporations now come forward, and say we're the victim of a ransomware attack? we paid? unclear. but that would be helpful most likely in at least trying to deter this. >> do we make it so you are prosecuted if you do pay, you're not allowed to pay for kidnapping a government rule. now, yesterday, he said that won't stop it. i think that what could stop at least a part of this is that if we as a country went very aggressively against the nation-states. he's not talking about nation-states in this one but we don't do anything. the chinese come in. the russians, they have a thousand person company, a thousand person company going after us taking resumes they have no hr department in russia. >> the president is meeting with putin in less than a week. >> how's that going to go? >> we're going to find out in fact we will talk more about the president's trip, meeting with boris johnson this morns,

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truly absorb the natural goodness. new chapter. wellness, well done. opening bell on a thursday, restoration hardware, rh, don't call this a store. do not call it a store. >> in stores, plants die all that in the conference call. plants live in this place. david, it's restoration. it's rh. rh outdoors. rh rugs. gary freedman, tour deforce quarter, far better than expected this is so far away from being a

store, it is just an experience, now he calls them galleries, but he does say, he uses frank geary as an example of what they're doing, which is great architecture, and i just found the conference call and his note so enlightening about what's going to happen. bernard arnot was mentioned. that is really, in many ways, his idol. >> one of the wealthiest men in the world. >> he runs a country, doesn't he >> he doesn't quite run france. >> great country dynamite place. >> it is. >> but he is saying there is a roaring 20s aspect to this economy. and i think that's amazing people should read this. because he's talking about big time spending, and remember, luxury is the only thing that really has - >> are they having any trouble in terms of securing goods >> mentioned that but not as much as others because it is very specialized luxury scale is something that

really doesn't exist in this country except for rh and i think it is a remarkable quarter, everybody raised number, still very inexpensive, world domination is his plan, he wants to take over the world. >> so up from here >> well, that's to the moon. >> all right, sorry. >> i think he can go much, much higher and he has said this, you know, cut down the debt, gary bought a ton of stock, i can't even show you, because it's like down here somewhere. see, you got denim very good outfit. >> and bought stock right here told everyone. came on "mad money." saying i'm buying stock and then look at this i mean this is not gamestop. he has a plan. >> he has a plan. >> he has a plan. >> he has been putting the plan into effect. >> yes, he has >> don't forget. he's not from australia. >> no. >> got it. >> very serious. >> we're going to take a break opening bell a few minutes away.

i think i'm going to keep this jacket on. >> you look fabulous. >> thank you. >> you like dynamite but that's the last thing, if that thing was tnt, sitting next to you

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welcome back to "squawk on the street." boeing will try to reclaim 251 at the open as we got this report that united is in talks to buy as many as 100 max jets that the united fleet management this past couple of weeks has been fascinating >> yes, it sure has. >> a great interview this morning with phil lebeau about all of the things that united is doing and then of course, andrew talking about how much debt they have, for heaven sake, but look, i don't think this is going to be a good quarter, we get these orders, but they need far more than orders, they need certification from china and they're not certified. the certification from china, that's when i think you start getting excited and i saw it was a little movement between our country and china last night, and kind of not a wrap by any means but maybe a suggestion if we could be co-op-etition and

not pure cold war and i think the united thing was important for boeing but still not enough to really move the needle here. >> but it is a reflection of what they believe will be long-standing support in traffic. >> yes >> and the southwest air was first. and you don't want to be the last guy because they will be able to raise prices and probably get a good deal from boeing and probably much more to do with travel in the roaring 20s and i think everyone is afraid, in the airline, afraid of getting caught, not having enough planes for the great reopening where people will start going to europe very soon. there will be arush of people. hey, scott gottlieb, the fantastic doctor, he is willing to go to europe. >> biden and boris johnson will talk about that as well later this morning in terms of sort of a reopening for regular travel so to speak. >> i'm going to italy. >> i'm going to italy. my daughter lives in spain she is coming back living in madrid, a tough city to live in i think there is going to be a lot of travel and it will be

very hard to get reservations because they have all cut back, especially in asia, and it's coming back. >> the opening bell at the big board here, zita global and cloud-based marketing technology company celebrating the ipo at the nasdaq also celebrating an ipo, monday.com, a major workplace management software, and we will have the ceo on tech check and talking about europe, vaccines are important and apparently the times says you have, if you work at goldman, you have until noon today to tell your boss whether you've been vaccinated or not. and it's legal to ask. >> yes, well, here, we get asked. >> i have always felt that that would happen but it is a big violation of civil liberties, and goldman, you work for goldman, they ask you for a lot of things. >> yes they want to know. listen, goldman has been very aggressive trying to get people back in the office, david solomon has been outspoken on

this topic and a number of other senior leaders in the financial services industry, certainly, although there is some difference of opinion there, there's certain firms i know that are not just as aggressive in terms of bringing people back but they certainly have been, i think there is perhaps been some disappointment in terms of some, of how difficult it has been to get people back. >> right right. >> now it may be that we're in the summer and it's like why now? can't we wait until september? and a lot of businesses have done that. >> how about facebook? >> and then there's facebook, guys, which put a memo out to employees called building the future of work together, in which it says it's going to be opening up remote work to more people and as of june 15th, all full-time employees in the company whose job can be done remotely are eligible to request full-time remote work. and in 2022, they say they will start to gradually expand opportunities for people to request full-time remote work across international borders and countries where it's feasible.

so we talk a great deal about return to work, but there are certain corporations, and you would imagine, it's because they're gauging the sentiment of their employee base, where they feel like it's in their interest to allow people to work from home >> benioff, right, he may be the most vokele. >> he has worked mostly from hawaii oo >> yes. >> i would be happy working remote, too. >> if my office was am malibu. >> yes mychal bell. there is a lot of them out there in hawaii. >> and a great place here. >> why not >> larry ellison obviously >> and no man is an island was wrong. >> but at the same time, facebook, which also wants people, if you're not going to be fully remote, they want you in the office, at least half the time, they haven't cut back on their leasing, remember, it was back in august, where they leased 730,000 square feet up town from him, the farley

building, you know, on the west side near hudson yards, and that's a huge, huge amount of space. >> yes >> and they committed it to in august. >> how about the salesforce tower, the largest building in san francisco. i mean, geez, they got the ohana room up top. >> empty what's going to go on? >> leasing to other people i don't know i still think that manhattan is surprisingly strong. versus how many people in buildings are empty. >> right, so you know, it will be interesting to see. now, younger people who are in new york, or in a major metropolitan area, probably don't want to be home. i would think. if you're a programmer, maybe, but it depends >> or if you're a loaner >> one of the greatest times for introverts >> i guess >> looking right, david, square in the eye >> i am not. what i realized is that i am an introvert on tv but i am not >> holy cow. >> i go out every single night.

>> i was sitting on my couch, 6:30, come on over, have a drink, done, here i am. >> you just did it >> i did it. >> i'm impressed. >> the beauty of new york. >> im a' impressed with that. >> and was it the time-warner center where you could shop and eat? >> no it was on madison avenue >> i got to land it to you. >> did you go to mark? >> mark is wide open. >> that place is busy. >> bring your checkbook. >> gosh. >> everything is more expensive now. >> eating out. >> everything. >> bitcoin you will need a lot of it. >> $8 beers. >> jim, we had an s&p record high and we got almost every dow stock in the green why in the face of a hotter than expected inflation number? >> i think there are a lot of people who held back wanted to see the inflation number, which they expected and now that's over with, let'sdo some buying. because they've been on the sideline and they want to get in.

i don't think that is actually unusual these days, because there's still so much buying power out there, people want in, and not just in meme stocks, and they want energy stocks, because oil is going up, they want health care stocks, and that one i don't get at all because they think that maybe rates will go back down there. is something for everybody it is kind of a, like zero, something exciting, something for everyone to see. right? >> whatchamacallit tonight >> a funny thing happened -- >> comedy tonight. >> comedy tonight. >> zero mustale, black listed, whatever >> and being - >> it is the anniversary of mccarthy today. >> have you no shame >> stu, stu. >> 1954. >> constitution simington.

>> boeing is flying. >> the number one dow stock followed by oil. and i know you had thoughts on the news on keystone and what that means for pipelines >> i think we are in a position for the first time, where it's not going to be the president making it tough for oil companies. it's the president and ferc i think will make it tough to have pipelines. pipelines are the answer to choke off drilling right now we have a lot of pipelines but if you don't have a pipeline, you're not going to drill. you can't do it by rail. >> without a doubt this pipeline was somewhat unique in what it was going to be transporting, right >> and canadian crude -- >> tar sand oils. >> no thank you. okay >> it's not right. >> not pipeline coming from the permian. >> no, not at all. >> no. not one bit. but i happen to like one oak, a very good stock to own i think kinder morgan will make

a big comeback kmi. i like, i'll tell you, there's a lot of these, you might even want to be in mmp, which i have not recommended in ages. magellan midstream which is a 52-week high with a 7.8% yield run by mike meres who is a fantastic guy, who knows the ferc better than anyone. used to come on the show and a lot of them have been in a fallout shelter for a while. but i keep continuing to say that pioneer, scott sheffield is a genius sheffield is a genius. >> exxonmobil is right at a 52-week high. >> that's no longer. >> more than a double. >> with the low. up 30. and by the way, we talk about it a lot, but it was potentially a seminal moment >> three directors i think they will make it official i think as soon as tomorrow. >> those people are against fossil fuels exxon, as we know from the great book about rockefeller, that was

actually founded on the concept of fossil fuels. >> yes, it was. >> and then it stayed that way >> pennsylvania. >> pennsylvania, the original -- >> exactly right oil city >> wow >> you're on your game today. >> oh, yeah, baby. >> this is a great look. >> exxon is an oil company with a board that looks like greenpeace >> that is overstating it. >> i think so. i think you went a little far there. just a teeny bit. >> there is a group that wouldn't have liked the exxon valdez. >> it is fascinating to watch the trass transition of the company and what darren woods' decision is, and does he quicken things by the way there is a strong school of thought out there that says this does not mean that any esg ballot initiative that is brought by an activist or anyone else is going to win because the three big index funds will vote in favor of it that's the question. is that going to be the case because so much of their marketing now, to new investors is wrapped up in an esg sort of cover. >> and that's what people are talking about. >> or was this more exxon specific than we really realize.

and years of basically ignoring their investors. and not that mr. woods has done that, but previous management. >> they have no choice look, when i said they were an investment, they were really just saying, hey, we don't care what you say, we're oil companies. those days are so over now these companies are all trying to think of ways, i mean look, there's guys who are saying they are going to use the extra methane to be able to run crypto, so crypto doesn't use so much energy, anything is possible. >> people are going to talk about this >> do you think 80 is now -- i know you were skeptical on 80 as a target >> look, if you're going to make it so there is no pipelines, and there's strong demand, hey, i don't know what putin will say, putin wants to not flood the world with oil but i think we're creating a situation in our own country where oil is going higher, just like when trump said, listen, i want everyone

drilling, that just caused oil to fall to the floor and now we got a president that says look, this is the beginning, i'm telling you, get in pipeline stocks because there have been pipelines that will be over in the next couple of years >> that's a big call on me >> i'm aware that that is a big call >> a big call. >> and there's work behind that call, i know >> yes. >> because you have a lot of good sources in oil and gas. >> and i do. and i got to tell you, pipelines, if you stop building them, the rest are going to make a lot of money. >> on the one hand, you can imagine, if you were saying, well, the consumer, household balance sheet is in trouble paying more for gas but signet shares up 13%. >> and this is unbelievable. here is another one of the ceos, nobody talks about, they should be talking about she is delivering numbers, by the way cigna is doing good business in omni channel, she is

turning these stores around, should i tell them what they are. >> i know what they are. name one. >> every kiss begins with kay. >> zales. >> piercing pagoda, do you know what that is >> where you get your ears pierced. piercing pagoda. that sounds scary. >> but she's done it she's coming on at 3:00. she's my guest >> apparently she is on. >> i'm not kidding this is not right. she's in the eisenhower? i discovered her she's from georgia university of georgia. a bull dog >> a three to four-year high. >> it should be. and it used to be a pawnshop it used to be a merchant of venice shylock.

and they made all their money loaning to you and now they make all their money selling jewelry and she did it, cleaned the company up and she's brilliant and she's great and she's not coming on "mad money." >> sadness >> sadness now reigns. >> i'm a competitive guy >> only 41 minutes of the show and the gamut of emotions already. >> i like to win. >> nothing wrong with that. >> s&p record high 270. 10-year, 1.5 again let's get to rick. >> yes, indeed, again, the important salient word in that sentence again. let's take a look at charts of cpi. the headline up 5% and you see on the chart, it takes us back to '08, actually the previous number, 4.2, took us back to '08, '08 was one of those big up cpi year off year years, and core, up 3.8, since january of '92. and back to the 10-year.

let's look at the intra-day. 6:00 a.m. eastern. you can see clearly, volatility at 8:30 eastern when the data was being released, but as joe said, as drunkenmiller said, that the signals to the treasury complex, indeed any sovereign, is hugely distorted due to policies of central banks. even christine lagarde today and her central bank meeting, hold on the phone, it is way to stop the bond buying and bond buying distorts the signals of the market so it is hard to tell what the treasury complex thinks of today's numbers but what we can tell you is that investors are going along with the fed to some extent they're not going to fight it. it has not been very profitable to fight it. does that mean that they believe there is no inflation? and it absolutely is transient not necessarily. they're just going along with the market until they see something that theycan act upo that will make it through the clouds and through the smoke and

actually get a signal out. and there will be those sessions of treasury trades now, if we look at another measurement of inflation that is being scrutinized these days it's the break-even 10-year. the comparison between a coupon 10 and tips which is treasury inflation protected security, and that relation in the 230s, you see on this chart, it has been moving down that's a month to date chart a daily month to date chart. and at that point, it is now the lowest rate in two months. going back to april. so that's a good thing but remember, there's distortions, because tips really don't trade very aggressively, so that pricing point, you really can't, you can't put a huge amount of faith in it but the general trend has been a bit lower, and finally, i mentioned christine lagarde, look at a two-day of the euro, it is off the worst lows but definitely bond buying means, well, it means a weaker currency. carl, jim, david, back to you.

>> rick, thank you very much rick santelli. you have the vix back below 17 at this point, it is the largest gain for the dow since may 14th. we're back in a moment ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. wondering what actually goes into your multivitamin? at new chapter,

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the online luxury marketplace first dibs is set to go public onhe million shares at $20 a piece. joining us is david rosenblat, ceo, congrats on the ipo, good to have you and let's get right to the business in the short time we have the growth grew dramatically in the last year. grew 16 force from -- 16%, but march of '21, that quarter, up 23%. can you sustain that kind of growth or was that perhaps more the result of people at home as result of the pandemic, who are

now, you know, not on their computers as much? >> well, first of all, thank you very much for having me on the show you know, from my perspective, we certainly did benefit from work from home, and covid in general. on the other hand, you know, i think it's pretty clear that covid simply accelerated a long-term trend which is already in the midst of happening. further more, you know, we're super early in the adoption cycle of this industry by digital. you know, we have a tiny percentage of the market, which has begun to move. and secondly, when we look at a more bottoms up, a little more bottoms up perspective, at the behavior of the customers we've added, since the onset of covid, those customers have demonstrated better engagement metrics than the cohorts of customers we added prior to covid. so i think as with many things that have to do with digital, the world is not becoming less digital, it is only becoming more digital >> yes, all right, so for those people who are watching today,

who are new investors, obviously, and a public company, what are the metrics that you feel that are most important is it engagement is it average price? is it having more and more sellers on the marketplace >> i mean what we optimize for is growing gmb we're hired by our sellers essentially to produce digital demand produce digital demand for them, and so that's -- you know, we're in the business of generating gmb i think secondarily we focus on adding new customers to benefit from this secular shift that i described. >> 387 million in gmv for the 12 months that ended with the march quarter. david, what kind of growth rate can you point to here? >> listen, again, i think we're super early in the conversion of this industry from offline to online you know, we did roughly 345 million or so at gmv last year we operate in $129 billion industry, so i think we've got a very long road ahead of us and it's extremely early innings

that conversion digital has been accelerated by covid as we see from the engagement metrics of customers we have added over the last 15 month, they're healthy, engaged and we expect that to continue. >> finally, david, you're no stranger to capital markets on the board of twitter, and iac, i'm curious, i assume you were approached to go public via spac you chose a traditional root, why. >> we evaluate both direct listings and spacs in the case of direct listings, it was important to us to raise primary capital in addition to simply being public, and that isn't possible right now in terms of spacs, we did take a look at it we did there were benefits associated with a traditional ipo process. internally, we felt we would benefit from the higher diligence requirements of going public via ipo, and externally, we felt that the business and we would benefit from educating the buy side, and we have done that

through hundreds of meetings over the past weeks and months. >> we look forward to following the progress of the company, david, and certainly appreciate the brief time we have you here this morning thank you. >> thank you >> we will get stop trading with jim in just a moment don't gowa ay. ok, at at&t everyone gets our best deals on all smartphones. let me break it down. you got your new customers — they get our best deals. you got your existing customers — they also get our best deals. everyone. gets. the deals. questions? got it. but, why did you use a permanent marker? because i want to make sure you remember. i am going to get a new whiteboard. it's not complicated. only at&t gives new & existing customers the same great deals on all smartphones. get up to $700 off our latest 5g smartphones.

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call today. let's get to jim in stop trading. >> i love it out the door . >> fantastic story service now. mcdermott did a good job in the last quarter but people didn't think so goldman goes to convention buy i think this is really, if you want to know the growth stock that has fallen, a great job, a lot of big deals we're talking about, and nice reset. i would buy it right here right now. >> that's one of the big calls today that we have been watching. >> yes >> what do you got tonight >> i have perk and elmer, you might have had the rapid fire test for pcrs. i have matthew boss talking about who's coming out, and then chewy, i just got a really good collar for my dog for marley, from them. i love those guys, and remember, the cofounder of chewy, but it's

not at all involved with chewy, is none other than. >> ryan cohen. >> there cyou go ryan cohen. >> reminds me of what baird said today, games aren't dog food and investors deserve more than memes to value company's fundamental long-term prospects. i mean, it's baird, but. >> i like that >> that's strong. >> game stop is down 11% >> all right, well, waiting a long time then. >> never really showed >> no. he didn't. >> that was a terrible play. i mean, you didn't like it >> no. waits for goodeau. >> iceman cometh was a good play it was like 7 hours. . >> longer than the ring. anyway >> good work today we got a lot done. >> i'll see you at three, i'm interviewing cigna >> are you going to hang around and force sarah off the set. >> no, i love sarah and wilf,

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good thursday morning, welcome to another hour of "squawk on the street," i'm carl quintanilla with morgan brennan and david faber, live at post nine at the new york stock exchange cpi did run a bit hot, but market doesn't seem to mind. as of 227, we have record high on the s&p and a ten year low. >> we're 30 minutes into the trading session. here are three big movers we are watching this morning, a couple of retail names on the rise. rh surging after a better than expected quarterly profit. restoration hardware raising full-year guidance those shares up 15% right now, cigna jewelers, eps doubling

street estimates as same store sales surged more than 100% from a year signet raising its revenue guide from 2021. the ceo will be on "closing bell" starting at 3:00 p.m. eastern. i'll be there as well. lastly, fastly, those shares are moving in the opposite direction. the cloud computing company lower after oppenheimer downgrades, experiencing numerous problems this week, leading to widespread internet outages. stock is down 40% on the year, as you can see, it's down 4% right now so far in this morning's trade. >> we will see you back here on set. meantime, a hotter than expected inflation number this morning. steve liesman breaking down the internals and what it all means. hey, steve. >> good morning, carl. yeah, block buster inflation number, but looking at the market today, it looks like investors have made their peace with inflation and are ready to move on but a look at the numbers gives fuel to the debate about whether this is all temporary or if some of this is

maybe more permanent here. let's take a look at the headline numbers, up 5%. that's the highest since 2008, year on year take out food and energy, up 3.8, the highest since 1992 on the month of 0.6 and x food up 0.7. diving into the details, there's some temporary stuff in there. used autos up 7.3% reflecting the chip shortage. airline fares up 7%. after 10% last month we're still 6% below where we were before the pandemic natural gas surging, apparel up and food up 0.4% it doesn't look like a lot but it is a lot for the food component. the hot take we got this morning from economists shows there's a robust debate about whether this is all going to go away in the months ahead or if high inflation numbers will linger. the pace should stabilize and moderate as reopening affects fades and once supply catches

up ellen zentner not so sure, the more persistent components like rents and oer firms up as well much more than expected, pointing to a firmer source of foundation data for the inflation data as transitory factors bawl out and the fed better be right about bottlenecks. that may be the most important point of all the risk, if the fed is wrong would mean a sharp turn around in what is now very easy policy and expectations that any meaningful tightening is far off. david, have you made your peace with inflation >> no. i'm not sure that i have, steve. and, you know. >> no? >> for now, of course, we can see this reflected in the ten-year yield, perhaps the market has, and powell has the upper hand, but this is still going to be the key question as we head deeper into this year, steve. >> i think it is so you're not david chill when it comes to inflation.

i get it and i don't know that the market has this right, but i'm astonished looking at the ten-year note. i have been astonished for a long time looking at the two-year, which is probably the better look, the better expectation of the market, when it comes to what the expectation is for the federal reserve when i look down the road, david, at the fed probabilities, i don't see the first hike built in until early 2023, at least not fully built in the market is not signaling its concern issue when i look at implied inflation rates, it seems to be chill out there when it comes to those guys trading fed probabilities. so i don't want to second guess the market here, but the risk is certainly that the fed would have to tighten more quickly than it currently anticipates. >> yep and right now, as you point out, not being reflected in the overall fear, as we've seen it in days and weeks past steve, thank you. >> pleasure. ahead of the g7 summit,

president biden is meeting with the u.k. prime minister boris johnson. steve sedgwick is live in corn cornwall, and he has more for us steve. >> david, i want to show you something how much of a showman boris johnson is, and how important the relationship is between jooide biden and boris johnson is that's the brand new aircraft in the royal navy and it's named the prince of wales, the prince f wales was the ship that the atlantic charter was signed in 1941 between winston churchhill, and franklin delano roosevelt, and set the path for post war institutions including the u.n., nato, and the gap treaty as well what boris johnson is trying to do here today ahead of the g7 meeting, he wants to actually restore relations and what many have called the special relationship between the united kingdom, and indeed, the united states by having a new atlantic charter, which will basically

set a path of cooperation between the british and indeed the u.s. going forward as well it's not going to be easy. we know already coming into this meeting that the biden administration and mr. biden himself, who prides himself of course on his irish roots, has been critical about the threats of the good friday agreement with the u.s. and george mitchell, the senator at the time helped broker back in the late 90s as well, and there are worries the british and their antagonism with the eu is leading to breaches with the northern ireland protocol, post brexit as well joe biden giving a warning to boris johnson not to damage that of course, so that's going to be very difficult what is difficult as well is the relationship side of things. we know that boris johnson, and donald trump had a very strong relationship, so much so that joe biden previously back in 2019 criticized the british prime minister as the physical and emotional clone of donald trump. so you can see the challenges are there, both on northern ireland, and indeed in personalities for these two as well they do have a lot in common,

and in fact,, if anything, the aircraft carrier shows the british are one of the few nato nations that keeps its commitment up to date in how much spending it needs to do on nato and on defense more generally as well. what would a new atlantic charter look like? just briefly, david, defending democracy, reaffirming collective security, building a fairer trading system, and we have seen a nod to that with the tax agreement between janet yellen and others as well. fascinating it see whether this bilateral goes well on a personal level as well as a country by country basis let me hand it back to all of you. >> steve, thaunk you very much, quite a departure from prior visits to europe we're a half hour into trading as long as the dow is up 185 or better, it will be the best gain since may 14th, despite the higher epi number. director of floor operations, art, great to see you, good morning. >> it's my privilege to be here. thank you. >> i guess once again, we're

asking whether or not bond vigilantes belong on the side of the milk carton. >> yes, they certainly have disappeared. the -- there are several puzzling possibilities, and what we're referring to obviously is the recent disconnect between the yield on the ten year, which had a great influence on where equities traded on a daily basis, intraday basis, even, and the past several days in which yi yields went down but stocks didn't go up in reaction, and there are several different theories there, one is reinforcement of this whole transitory concept, and a few, deep minority believing we may even begin to see some deflationary influences after the collapse in things like lumber, and down moves in copper

and whatever others are saying simply, no, it's the fact that the biden proposal, the economic proposals, fracture, et cetera, are getting push back, and that may mean lower expenditures, and therefore less demand for money, and less upwardpressure on those interest rates and then finally, there is some people feel that there's offshore influence, and they claim and i don't want to get too arcane here but that there are some indicators in the chinese banking statistics that indicate things may be tightening up there. now, that doesn't make a lick of sense. they're having a new resurgence in covid the ports are beginning to back up shortages going out. you would think that with that physical threat, the bank of china would be pumping money in hand over fist their numbers are difficult to come by.

they have sometimes months long lag leads, so we'll keep an eye on that, and for me, however, it's a little tough to buy this biden cutback proposal. >> so cani pin you down on the ten-year which comes first, 1% or 2%? >> boy, i would have bet you 2%, but if any of these disinflationary, deflationary moves become evident, then i would have to back up. i think we might, again, start to move lower. a critical area will be the area around 135, if we get down there and move through it, then that will tell me there is something going on here that people are saying inflation, no, not at all. so we're going from transitory to possibly deflationary, questions wide open out there, i think maybe you'll hear from me

and very few other people. even the word deflation, but it's something i'm going to watch out for. >> art, i realize we have been trading in a very narrow range where the s&p is concerned in recent weeks, and we weren't that far from a record high to begin with, but the fact that we did just touch a new all time high today, are you surprised by that >> not entirely. you know, we have been trading in this up and down rectangular range for weeks now, morgan, and when i checked the slide rules, they indicate that we're going to be testing that range we wrote in the morning comments we are now up at the first level of resistance. they look like they are not only at highs but obviously being at highs about to break out from that rectangle but so far, no sign. i mean, it's -- the market is a great tease here they go up, they look like they're breaking out, and then they hesitate, and they have

pulled back into that rectangle. so we're going to give it a couple of days of testing and see what happens you would like to believe that when you punch through the upside of a market pattern, that inspires both breakout buying, and in some cases, short covering so you should see a kind of burst, after you move out. no bursts so far, and without that, then, you've got to say the moves are slightly suspect. >> art, on some of these meme related names, we have been asking the last couple of days, whether it's a function of having no earnings season in progress, waiting for rare important macro data points like today's, what do you think it's about? >> well, i think it's about the new game, the influence of social media, you knowings the c -- you know, the chat rooms, you know well, you have heard me say again and again that it is

my belief that what they do is get into a chat room with a big following, and these days every cat room has a big following, and then they enlist themselves with the retail and no vote traders, if you would, and say let's look at this we're going to move up they -- i think there are, in fact, some people who are operating as counter spies, if you would. they get in there, they say, hey, i'm one of you, wall street's against us, hedge funds are against us let's get back at them they find some stocks with reasonably high short position, and then they get everybody excited, they talk ever since leyman, there's a new game they play and that's the out of the money options. they get in and say, hey, look, somebody just bought options that are 10% higher in amc or 10% higher in game stop. and they must know that this

thing is going to go up 10% in the next 15 days and then they buy a little and that turns into a little bit of a stampede it's a bit of a confidence game. i've seen this time and time again over 60 years. it takes different formats, but i think we're back in the game i am very suspect of it. i wish the people at game stop well, but you saw it sell down after they hired two very competent people i guess they thought they were going to hire albert einstein, and when his name didn't show up, there was disappointment >> yeah, that being said, art, i do wonder what you make of the comments we got from s.e.c. chair gary gensler yesterday about the closer scrutiny he's taking at some of these market structure issues that could have potentially wide ranging effects for the underlying structure of the way things are traded and how different entities make their money on those order

flows. >> morgan, i thought it was an absolutely brilliant interview, and the fed chair encouraged me because he was talking about all the right issues, you know, i have said from the beginning when these things broke out that if the s.e.c. can do it, they need to go into the chat rooms, and see if they can find a way to identify mr. x, who is arthur cashin, saying, oh, i just saw these trade up, we don't care if we lose money, we're going to break wall street. things like that, and then go and check what kind of positions he had it is my rather pessimistic opinion that you will find a couple of pretty big players, not retail joe's, pretty big players in there taking big positions and riding the wave that they create in the chat room, and i thought he was -- he was excellent, and his other point is something, again, over

60 years you learn there is no free lunch and it's not really free trading, it's trading at no commission, but you pay for that lunch somewhere else >> that's exactly what gensler said to kelly and tyler yesterday. art, great to see you. thank you so much. importance guidance on a day like today art cashin still ahead, is ashford hospitality the next meme stock, we're going to talk with the ceo next and the president sitting down rith british prime minister bos johnson, we're going to take you live there in just a few moments. dow has lost a few

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gamestop has a c suite, our dom chu has more. >> gamestop is tapping two former amazon executives for its top roles. ho mike recuepra most recently served as the cfo of amazon's north american consumer business it's not all bad news for the outgoing executives they are replacing. ceo george sherman is going to walk away with more than a million shares of gamestop, worth more than $300 million as of yesterday's close those shares are going to invest when he exits the firm as will

the shares of four other executives as well upon their departures a few things of note here on the whole gamestop realm the company formally naming ryan cohen as its chairman during investor day, cohen has been -- yesterday he told shareholders that a new era was being ushered in at gamestop but did not really offer many details on that strategy. some analysts, though, are honing in on that with baird calling the turn around plan a mystery, and analysts at web bush telling reuters that every day cohen doesn't reveal his strategy, quote unquote weakens the mean in the company's better than expected quarterly results, gamestop noted that the s.e.c. has requested documents and information related to that stock's wild trading over the last month or so, along with that of other companies. but it does not expect the probe to adversely affect the company overall, and folks, we see

gamestop slip further today. it's also worth noting, the company floated the possibility of another 5 million shares being sold at some point in the future to raise capital. morgan, we're talking about 10% losses, 2 p.9% shares of volume we'll see if that pace picks up later on today, morgan. >> all right welcome back to "squawk on the street," the meme momentum continues. ashford hospitality shares up 130% in the past month we're focusing there let's get over to seema mody who joins us with the ceo of that company. >> ceo of ashford hospitality rob hayes joins us now thank you for joining us call it a comeback, six montmonths ago, your company was on the verge of bankruptcy, riding this wave of investor enthusiasm. you have raised nearly a hundred

million dollars so far through stock sales this year. would you say that this new investor has been a lifeline for your company >> it's changed the game as early as october 30th, we had an equity market cap at ashford trust of about $15 million, and now have an equity cap over a billion, and largely due to the participation of these retail shareholders it's a game changer for us, and it gives us the opportunity to maybe do things at a pace that we never anticipated doing, and we're grateful for it. it's not what we expected to be at this point in this recovery >> what exactly do you plan to do with this new investor enthusiasm you have raise d a lot of money do you plan to use that to bring down your extremely high debt levels, nearly $4 billion. do you think these investors understand the risk associated with your stock? >> they're more sophisticated than people give them credit for. i do think they understand it, and it's something where it's

unlikely that unlikely solve all of our problems in a short period of time it's going to take time. given what we're seeing and the enthusiasm in this group, it gives us opportunities that we haven't had before. >> some investors have taken issues with the structure of your company, external adviser, real estate investment trust, your former ceo monte bennett, what about your employees, though, 7,000 employees before covid hit. you had to lay off nearly 95% of them do you plan on bringing any of them back? >> we're trying to bring them back as fast as we can we have hundreds of spots that are open at hotels across the country. we're excited as travel is coming back, this recovery is real, and it's accelerating, and we need to get people back into the hotels, both customers and our employees. we're doing that as fast as we can. >> faber back here at the nyc, to what do you attribute that investor enthusiasm, can you

cite a triggering moment was it a short position in the stock or perhaps something else that you're aware of that we're not that lit the match so to speak? >> that's a magic question i don't know in some ways it seems like they choose you, you don't choose them i think we got -- we had some trades in the fall when we were doing a preferred exchange that created a little bit of volume, but it was something that we saw some investors on twitter, and this really wasn't as much as the reddit community zach morris, and will mead, and others that i didn't know, saw something in our stock, saw something in our name months ago, and slowly built up this community that i didn't really know existed and then once you see it as a ceo in this modern era of communication, you either choose to embrace it and use it for the sake of the company and the shareholders and our

employees or you become a silent ceo, and i chose to lean into it a little bit, and we'll see what happens. >> yeah, we're seeing a lot of leaning in i have to say, rob, it's morgan, the fact that you just joined twitter in the last 24 hours as well, the fact that you are listening to directly talk with this individual investor base that is gaining steam right now, are you yourself as a ceo adopting a new play book what do those discussions look like with your board, your c suite, et cetera >> it's a good question, and yeah, it is completely different. i was talking with one of our investor relations people, and how five years ago, ten years ago, we used to be an 80, 90% institutional shareholder base and now that's completely flipped, we are probably an 80, 90% retail shareholder base, and that changes the way you approach things, and the reality is that we've got to be able to engage with those shareholders and both listen to them, know that we appreciate them, and so, yeah, this would not be my

preferred path of -- i'm not a big twitter guy. i have not been out there for a long time. given where we are now, and what the future of this retail game looks like, i've got to do it, and i think it's in the best interest of our shareholders. >> you just released some documents as well in those last 24 hours on twitter. in terms of your forecast and the path to full recovery, lay that out for us. >> sure. i think you're going to see great numbers this summer, leisure travel is back, fortunately we have a portfolio of 100 hotels, mostly marriott and hilton, and hyatt branded properties across the country, and a very leisure and transient focus, so i think the summer is going to be very strong. i think the real question is what happens after labor day do business travelers come back, and what do groups come back, and it's hard to say, but i think conservatively, i think looking at 2023 as probably when the recovery is back to 2019 levels, and god willing, it could be sooner that be that.

>> back to yor sur stock, the s.e.c. probing more companies. as the ahead of a company that may or may not be wrapped in that craze, does that concern you? >> you just have to do things the right way and do the right thing. we have been a public company a lot time and know how to do things the right way and will continue to do so. if you go through things i'm tweeting, there's nothing material, nonpublic, trying to go through and listening to what investors are saying, and let them know that i'm a real person, and we have real people. we're standing in the lobby of one of our hotels. there are real employees here. that's an actual desk of employees out here working i think humanizing the company, and humanizing me, and humanizing our investors is a better way forward for all of us i'm going to be focused on that. >> seems like a strategy you're definitely using stock down 3%, but up 27% over the past week. rob hays, thank you for joining

us, ceo of ashford hospitality in just a few moments, president biden holding a bilateral meeting with boris johnson. we'll have live coverage in a few minutes. first, we have our etf spotlight, take a look at the ticker ivg, up a couple percent on the year. as some of the high flying covi indexes take a breather. the shares rising this morning, and that is giving lift to the etf overall. service now is up 4% conviction buy list is what it was added to at goldman, the site improving near rmte fundamentals, and the ability to accelerate subscription revenue. we'll be right back. the world's first fully autonomous vehicle is almost at the finish line what a ride! 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 (vo) this is more than just a building.

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save 20% or more on thousands of hotels. just book now through june 12th to plan your escape with expedia. expedia. it matters who you travel with time for a news update, kate rooney has that for us kate. >> hey, david, good morning. moderna is asking the fda for an emergency authorization to allow its covid-19 vaccine to be given to adolescents, aged 12 to 17. pfizer's shot is being administered to that age group. and amazon could be fined

more than $425 million for violating european privacy laws. the "wall street journal" says that is the recommendation of eu regulators. former united auto worker president gary jones has been sentenced to 28 months in prison last year, he pleaded guilty to stealing more than $1 million from the union, and apologized to its members for betraying their trust. and just after sunrise, along the u.s. east coast a partial solar eclipse. check that out the next eclipse is coming october 20th through the 23rd. it will be visible in parts of the western united states. guys, and carl, specifically, back to you. >> kate, thank you so much. as we go to break, we haven't mentioned crypto too many times this morning, got crowded out by the macro data. bitcoin is rebounding a bit as j.p. morgan suggested it needs to increase the share of the overalcrtoart,ndl yp mke a it's

one of the few coins up today. back in a minute 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. 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.

welcome back to "squawk on the street," i'm morgan brennan along with carl quintanilla, and david faber, live from post nine at the new york stock exchange we are about an hour into the trading session, the s&p at a new record high. let's get over to bob pisani. >> people have convinced themselves that things like airline tickets a lot higher in the last month is going to be at least moderating in the following few months that's at least the meme right now. the fed is right, and essentially it's going to be transitory we'll see, but the market believes that for the moment the important thing, is remember 4232 4232nd, the may 7th high, we have been struggling to get over that finally we're there. we'll see if we close there. that's the new closing high, anything over 4232 is the closing high, and we're being helped by an interesting swath there's a lot of debate over

whether growth is going to out perform value. it's an interesting discussion technology is helping. oil over $70. when was the last time you saw that we have new highs in the oil stocks industrials, materials, some of the more cyclical side of it has been holding back a little bit re recently, so there's a very interesting debate over whether the cyclical sectors that powered us forward in the first part of the year on the reopening story are going to continue in the second half. the story still out on that. in terms of new highs, a few tech giants that are out there interestingly, 52 week high, google consistently, alphabet hitting 52-week highs recently, ebay also, but energy stocks that are there you have conocophillips, sort of high beta energy stocks thaey tend to move more than the market does.

52-week highs, marathon petroleum at a 52-week high. you heard cathie wood pushing it jim was talking about it a little while ago i point out the usual, the facts about value versus growth, difficult category to describe you have a lot of groups in this -- that are things like oil companies, some of the retailers that are in it but you also have in the growth category, companies that you didn't necessarily think were growth companies wita couple of years ago, caterpillar, and deer value is outperformed this year. growth has been coming back just recently, but the index, guys, constantly point out to me, bob, you want to knock yourself out with this. go ahead, but if you just own the s&p 500 this year up 13%, you wouldn't have had to worry about the value versus growth story, and typical when value out performs growth, s&p 500 is in the middle, and you split the

ki difference it's an interesting debate the question is if the peak story is correct, if it's correct, and we're going to have the mother of all earnings, tgs going to be fantastic, 60% up from last year, on the s&p 500 if this is truly the peak, there is an argument that going back to the growth stories, going back to the tech stocks is not a bad idea but that's still out right now. guys, back to you. >> it's such a big question, and it gets to exactly what we're talking about with art cashin on the show just a little bit earlier, and that is the fact that there has been in recent days and recent weeks, a disentang lment, if you will between the bond market and equities, if you look at the rate picture and the effect that had on stocks. >> it's almost like the market got the story wrong. the narrative for the second half of the year are interest rates are going up, inflation is going up the question is how much of a problem that's going to be, and we're going to have an enormous

reopening story that's going to benefit all of what we call the reopening stocks, particularly industrials, materials stocks. the market story has been wrong, and now we're sort of struggling to explain, wait a minute, why are interest rates actually lower, not higher, that's not part of the narrative that we had a month or two ago, and why are the reopening names struggling more and growth is coming back a little bit more. that's not part of the narrative either so the short answer to the question is the market often gets the narrative in its head going, and then the narrative essentially changes because either facts change or the way people look at the future changes a little bit and i think this peak story is the key story that everybody is starting to understand, the second quarter is the peak certainly of earnings acceleration growth, earnings are third and fourth quarter, they're not going to be accelerating in the way they were in the fourth quarter, the first quarter and the second quarter. you see the market has these

narratives and they changed the narratives in the head as the facts change on the ground >> indeed, and one reason why some of the year end targets aren't quite as aggressive as they have been in the past, great insight about pisani dow session high up 290. we're up 112 now as we take a look atht e losers on the meme front. we're back in a moment wealth is saving a little extra. worth is knowing it's never too late to start - or too early. ♪ ♪ wealth helps you retire. worth is knowing why. ♪ ♪ principal. for all it's worth. wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really

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♪ ♪ brother against brother. get in. [ ominous music playing ] this should be interesting. a top market voice as it's now time for the fed to acknowledge that higher inflation is here to stay. urnd out what that means for yo money on trading nation.cnbc.com. more "squawk on the street" ahead. this is us talking tax-smart investing, managing risk, and all the ways schwab can help me invest. this is andy reminding me how i can keep my investing costs low and that there's no fee to work with him. here's me learning about schwab's satisfaction guarantee. accountability, i like it. so, yeah. andy and i made a good plan. find your own andy at schwab.

a modern approach to wealth management. wondering what actually goes into your multivitamin? at new chapter, find your own andy at schwab. its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done. welcome back, we're getting closer to find out who will be heading to space origin flying the first astronaut crew past the edge of space on july 20th it has been auctioning off one seat aboard that new shepherd capsule. the three phase online auction enters the final stage with the final round of live bidding. today is the last day to

register for that by 5:00 p.m. eastern, and in the meantime, the current highest bid on blue origin's site, it's $4 million the proceeds are going to go to the company's club for the future foundation, supporting initiatives for kids, and we'll keep an eye on the tourism market that is emerging and starting to get traction, especially when you think about virgin galactic, and the space flight plans taking shape for the summer as well sticking with aerospace, let's take a look at shares of helmet aerospace, poised to ride the recovery and aviation, and with it demand for aircraft, not to mention ongoing defense spending and the impact there for more on all of this, joining us now on a cnbc exclusive, john plan, executive chairman, and ceo. welcome to the show. >> good morning, morgan. >> you have reinstated guidance, resumed share buy backs, plan on paying a modest dividend the

second half of the year. we're seeing the balance sheet strengthen as well how much of this is the beginnings of the fruits of the restructuring that you have put in place in the last year, finally materializing versus the recovery we're seeing at some of these key markets like aviation. >> i think the journey of the last couple of years has been quite momentous for the company, the aerospace company, and the aluminum rolling mill company has paid dividends plus the repositioning of the balance sheet and the fundamental improvement in performance and cash flow all have led to the current healthy outcomes of the company. >> yeah, and we heard from honey well ceo earlier this week about the recovery that company is seeing right now, not only on the domestic side where air travel is concerned but also internationally, and the expectations there as we do see 737 max orders, for

example, begin to rebound right now, i mean, today we have reports that united is poised to purchase upwards of a hundred. i know you're a supplier on that aircraft among others. how is that trickling down to howmet right now >> let me start with the leading indicators, whether it's searches for flights, ticket prices, flight takeoffs and landings, everything that we see certainly for domestic travel leads us to believe that the next few years are going to be very healthy for aerospace if you assume that international flights begin to recover starting this summer, and then supplement the narrow body growth with wide body growth in a year or so's time, i think we are set for three very healthy years of outsized growth in the aerospace industry, and then maybe by the mid decade, reverting to the more norm of a 4 or 5% growth healthy times indeed. >> yeah, what are your expectations on the defense side, since i know you also

contributeparts and components to things like the f 35 strike fighter. how much did that help, i guess, buoy the company last year in the midst of covid, and what are your expectations for growth in that part of the portfolio? >> the health and defense clearly helped us. sales were up double digits last year also our industrial markets in industrial gas turbines were very healthy for us, the slidty solidity of business was quite important in the last year. we see it remaining steady and growing. it grew again in the first quarter of this year, and then we look forward to just ef 35. it's about 40% of our defense sales. then we note that lockheed plan to build more aircraft in 2022, and 2023 more than in the last couple of

years, so that's good for us and also clearly with the fleet of f 35s, it would be stalled around the world it's going to be really important as we get to the middle of the decade >> inflation, and focus again today, given that very hot reading that we got, consumer price index reading we got for the month of may commodities have been a key piece of this, including aluminum, which has gained double digits this year. what have you seen what are you experiencing in terms of these raw material costs and how much of that are you able to turn around and price out in your end markets? >> okay. nickel alloys are probably the most important commodity that we purchase combined with supplemental, i'll say good things are going to nickel alloys like cobalt, we do buy aluminum, that's the smallest of

our raw material buyers. we have experienced very significant inflation in each of those markets over the last few months we're in the position where essentially we have passed those costs through to our customers by way of agreement by escalators, and most of those being dealt with inside the corridor that's, you know, is relevant to them we are about 95% covered in terms of all input of material inflation, so that's a good condition for us in these inflationary times >> and finally, you joined the company in 2019, but this is a company that has been influx for a number of years. it was spun out of, or i guess split off of arconic last year in the midst of the pandemic, and four years before that, out of o koa what are your expectations of what this company looks like and the growth trajectory now over

the coming years >> i think the trajectory from now is really solid. i look at the -- not only the immediate recovery post pandemic, but you look at the long run cycles of our end market, particularly in commercial aerospace and defense over the next few years. i see a a solid uninterrupte period of revenue growth going out certainly during hopefully the next decade. even though that's a bit of the future but the way i see it at the moment. >> thank you very much. and shopify. a lot of details at 11:00 a.m. eastern time and "squawk on the street" continues and as the dow's gains are awfully close to being gone. ♪

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their fleet. >> they are. booms supersonic and archer going public via a spac unveiling aircraft in california united is doing interesting things in terms of investments of course, far as the 737 max is concerned just talked to another aerospace company about that, too. >> and $10.15, the spac. and the other one. joe -- joe who >> and then another one, i think, getting ready to go public via spac as well. a market that is picking up pace, at least from a -- >> i like to call them flying taxi, but that's not really fair. >> yeah, but they hate that. >> true. >> but boeing is one of the better performing names on the dow for now. as we said, session high up 290. >> yeah. head to break, look at the biggest leaders on the s&p after launching a new record high this

morning. servicenow talked about earlier in the hour. isl-eri lilly, bio rad labs and brtomys. health care names rallied this week "squawk on the street" will be back. with a bang. energy and change came to every part of our universe. seismic or small it continues. (♪ ♪) change is all around us. (♪ ♪) shaped by technology and human ingenuity. we can make it work for you, and your business. let there be change. accenture.

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we wouldn't be here without our wonderful customers. we're really thankful for all of them. [female voices soulfully singing “come on in”] 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.

we have some retail names on the move this morning. you can see a couple there get to courtney reagan for more. courtney >> reporter: hi, david yeah, retail rebound continues from diamonds to couches start with signet jewelers reporting a stronger profit than the street expected. stronger revenues and comparables sales. apparent of sales, jared and more comparable sales growing more than 7% across the board with strength in north america's stores and online up 118% at 113% respectively. international comps fell in total, and in stores, though some strength online margins improved markeddly froma year ago and sales guidance above the street both the current quarter and full year. cigna shares up sharply here this morning and up about 400%

year over year rh beating by a wide marge on earnings and revenue with strengthening operating and gross margins. so ceo gary friedman actually quotes bernard arno saying his are stronger than the luxury con glomerant. stronger than expected sales forecast for the current quarter as well. shares of rh up 15% here friedman saying "the unmasking of the general public could lead to a rory '20s type of consumer exuberance strength in u.s. housing market and renovations, record market highs, and reopening of the company suggest good times com co coming," according to the company. and expanding internationally next spring. considering new services like landscape architecture to add to its portfolio. morgan back to you. >> all right a great hit but let you go back

to that beautiful baby boy i think he made a little, at least audio, cameo appearance here on cnbc courtney reagan. >> he did. thank you. taking a quick look at markets. fading gains dow up now only about 56 points or 0.1 of 1% does it for "squawk on the street." "techcheck" starts right now. ♪ good thursday morning. welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa big day today. why gamestop has obsession with amazon, plus news from microsoft and ryan cohen will not like then, if you can take the heat, get of you 0 the app store creators feeling pressure from tim cook and fighting back later, put a sock in it.