fractional gains, lightcoin. and doge coin, 32 odd cents. down 1.5%. bath guys. >> dom, thank you very much. that does it for us this week thank you for being with us for the week keep an eye on the 10-year because the yield is falling back below 1.5%. the lowest level since early march. andrew we'll see you next week hope to see you back here then too. right now, it's time for "squawk on the street. good friday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. futures are still hardened by the way in which cpi was absorbed 10-year 1.42, a three month low. news on the cruise lines, chewy, infrastructure talk. and our road map begins with the meme, and momentum and gamestop and others get back

from losses. >> covid's cruise impact the industry is already struggling to resume full scale sailing and a new ship reports covid cases. >> china's ride hailing giant didi filing for the u.s. this summer never short a dull market and that has proven true this week. >> look, i never want to tell people that things are dull because the meme people will keep it alive no matter what but i thought yesterday was one of the most important days i've seen in a long time. because there were many different lines, and i tried to break them down on "mad money," that showed inflation. and there should have been this cry about how we had to get out of growth, because those stocks don't maintain their value it was the opposite. yesterday was annihilated if you owned caterpillar and did great, it was a beautiful day, for growth stocks, i mean yesterday was an amazon day that i haven't

seen in a long time. and no one talked about it it's really extraordinary. so you would have gotten annihilated if you had shorted what would have been the traditional play book. >> that's interesting. our friend tom lee for example last night takes banks to neutral, says he thinks if rates are in a true down trend and if you look year to date, you can argue that they are, you want to sell financials and buy -- >> i was looking at the travel trust and you only own wells fargo, mea culpa, i should own more of these i guess, but tom lee is right, if we stay low, people will say you know what, why am i in bank of america, why am i in jpmorgan, i can be in wells because that is charlie sharp trying to turn out what turned out to be a bad bank. >> right but that stock has had quite a move off the lows. >> it is going to be able to buy back 12% of the shares if it has a good review. a good c-car review.

and charlie is making a lot of changes there. >> but basically, the only big bank they've never got back to pre-covid prices. >> exactly right and it is historically cheap buffett did bail there are a lot of reasons why it was cheap and i think it wasn't just the scandal. it turned out to be poorly run the distinction between say a jpmorgan or bank of america, man, it is just run differently. >> yes and it can take quite a while to turn something like that around, and you're talking about execution in some ways. >> i'm talking about the expense ratio. i think people at home get confused, there are different metrics, i've been working on this, that people, and we will talk about it with chewy, the metric that people are focused on in banks is expense how can they have the big, because there's not a lot of growth involved. although there was some this quarter. but the expense ratio of wells >> to your point, when it comes to the banks, there is an

expectation that if the economy is going to grow as quickly as many believe it will, there will that kind of loan growth and offset to a certain extent if for some reason we do day at the 1.4, 1.5 level and the yield curve is not particularly steep. >> definitely. and i know the numbers that i was given yesterday, the retail analyst from jpmorgan, proprietary chase data, consumers most liquid ever you're seeing things by the way, i'm sorry, i wouldn't touch yesterday's because -- i wouldn't touch this with asbestos fingers this is good. >> okay, good. this is approved now. >> but you're seeing some figures that would indicate that gary freedman in his restoration, now rh, noted at the beginning, saying it is the roaring '20s it is. it is the roaring '20s but not being done with debt >> and all of the excess savings, the labor market tail winds, the price appreciation of

assets, we talked about signet yesterday and today dave and buster's comes out with a surprise profit of 40 cents. >> i was shocked at that particularly because that's the most discretionary spend in the world. i mean david, i went to david and buster's with my youngest daughter and you know, it was like this. they picked up nothing with the claw >> the claw. >> the claw. >> the claw, it is rich people. >> the claw is a con. >> yeah. >> the claw is a con >> you should deal on wall street bets. they would love you. >> they like that? >> that is very serious rigorous analysis like they use over there. >> got it. right. >> dave and buster's, you go there to spend a lot of money. more than you should signet by the way, the numbers that gina drosos, the numbers going to zale sudden a pa go da,

and rental business, renting jewelry. >> and today's signal goes up. >> and there was a sell on it. >> >> the whole way. >> why is every general news headline about how people are freaking out about rising gas prices, food prices. >> yes can i read something from steven roche. we had him on. >> steven roche? >> he worked for arthur burns at the fed when he first started in the early '70s today the federal funds rate is currently more than 2.5 percentage points below the inflation rate he was pointing to the '70s. now add open ended quantitative easing 120 billion a month in frothy financial markets. largest fiscal stimulus in post world war ii history all of this occurring precisely when a post-pandemic boom is absorbing slack capacity and an unprecedented rate, policy gambit is in a league of its own. >> league of its own. >> league of its own.

>> so one-third of the inflation was used cars, and trucks. when you get that tipping point for the last semiconductor, you will see a plummeting of cars and trucks values you wouldn't believe. right now, you can't get a new truck, my wife is trying to buy a new truck, forget about it, there's no trucks. there's no trucks. f-150, you can't get them. >> carl and i can sit here for the next 53 minutes of our show and cite different statistics to you that there is a lot of inflation. not to mention just, i mean you've been going out, have you seen what your restaurant bill is lately? >> the demand is such. >> it is. >> it doesn't mean that there is an incredible amounts of inflation. >> you don't have to go out. >> it's discretionary. >> okay. >> you don't have to go out. >> okay. >> you think campbell soup is going to be able to cut prices >> the concern among those who would argue otherwise is inflation has a psychological impact and it is self fulfilling so the believe it is going to

come will result in higher prices, and manufacturers and the like continuing to - >> i think there are 90 new airlines that are opening this year >> you've been right so far by the way. you said it was going to be transitory the bond market is agreeing. >> there's this guy, he runs the fed, pretty good guy - >> we will hear from him. >> jay jay. >> you and jay are a first name basis? >> actually, in real life, yes. >> what's his middle name? do you know his middle name? >> if he doesn't know my middle name, what does that mean? >> i know his wife's name. but we're not going to go there. but i think what matters to me is that he is systematically made every right move, and he is doubted across the board does he not look at -- what do you think, you know what, when he goes home to his wife and says listen, i can't believe that chicken costs that much, i got to go raise rates. he's a thoughtful person, for heaven's sake. >> yes yes. >> unlike steve roche who is in a league of his own, frankly. >> listen, he is still a fairly

rigorous guy he said a lot of things about china through the years and so forth that we've had conversations about that haven't felt exactly right. >> peter navarro, his team >> really? >> you would rather be in the navar navarro camp. >> he came to me a year ago. >> i know he did and he may have been right and that's it >> tell him to go back to rochester and work on his kodak deal, all right. ask him how his spac is going. that kodak spac that he did. >> you are a vicious person. >> i on the other hand am temperate. >> he has bullied a number of our anchors and i don't like that sorry. >> absolutely true fair enough. we are watching the cruise lines today, royal caribbean, celebrity cruises, says the two passengers aboard the celebrity men yum ship have tested positive for covid-19. it says the passengers who were traveling together have no ises and are being isolated

celebrity recently restarted cruises after more than a year, jim, this was their first north american cruise since 2020. >> here's some things we need to know and i don't know the answers. i believe that celebrity, i want to know if they vaccinated kids, or were kids unvaccinated. that's number one. i want to know, did they test people right before they got on the boat, with an antigen test, like a binax that abbott obviously made, didn't need it, but you got to, we got to find out from richard, and i hope he does call into our show, do they let kids on, and now, of course, this is asymptomatic, they put them on state room, but it is obviously not what the cruise industry need, but i think unvaccinated kids is the thing i need to know about >> because that would be the answer to you as to whether they were on the boat >> yes. >> and i believe if i want to cruise, and i've been interested in doing it during the holiday period, i need at least antigen testing right on the dock.

i know that for instance that norwegian cruise has to do that, antige and my understanding is norwegian cruise will not let unvaccinated children get on. so i'm willing to take a norwegian cruise i am i'm also - >> at this point, even knowing what you know about royal. >> if norwegian is doing what they're claiming, absolutely without a doubt. i would take one of those to alaska. >> you're also vaccinated. why would you worry? >> well, true, there is an issue, i was out last night, with an absolutely terrific ceo, and the people were coming up to me, and shaking my hand, and initially, i remember what dr. gottlieb said to me on twitter, he said i never shook hands even before this, but by the end i was hugging people - >> trying not to shake hands >> it is hard. >> i know. >> and i went home and i told my wife, geez, i don't know, i hugged some people tonight, and she said aren't you mr.

vaccination, what's the vaccination for, if you don't have the vaccination, one of those things you're vaccinated. >> i'm so glad lisa doesn't watch this hour. >> she doesn't know. >> she knows >> dr. gottlieb was asked this exact question on "squawk. here is what he said. >> those environments are inherently, they have certain risks associated with them, there's a lot of people in confined spaces. i don't think they need to be higher risk environments than taking a regular vacation, i think they can be lower risk environments because you have the ability to control those environments with testing, to test as they get on the ship, as they get off, while on the ship and you have the ability to require vaccinations in those settings so i think this could be a very safe environment and potentially even a safer vacation than going to london or going to a big city, but really, i believe they should be looking at requiring the vaccination. >> speaking of london, the case count in the u.k., jim, is showing a clear turn which we will monitor.

>> and how about, i'm very worried about malaysia, lockdown, remember, if you're going to believe in transitory, you have to know that global foundries are all there. and global boundaries are all there. they're in malaysia. they are in taiwan you cannot have these places have this and expect that we won't have another leg up in the transitory inflation steve. i mean david [ laughter ] >> when we come back, will it be a red hot summer for spacs get ready for the spac on the street after the break take a look at futures here. as we need about 10 to 12 points here i think for a fresh intra-day high on the s&p. don't go away. you need a financial plan that can help grow and protect your money. an annuity can help cover essential expenses in retirement, so you can live the life you want. this is what an annuity can do. learn more at protectedincome.org. wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation.

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xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. what is that okay that was our new spac animation. which by the way we got ready to go right at the peak of spacs. but let's not forget we did talk about the spac-out. >> yes. >> in march, i think it was march 19th >> yes. >> and they went right off the cliff in terms of performance, it was really the top. it doesn't happen too often but from what i was hearing from so many, the s.e.c. scrutiny was a part of what was going on, the performance of the spac stocks themselves, started to fall off dramatically, and take a look. >> killed churchill. >> david faber killed churchill.

>> there is the look at spac ipos and the filings and what happened and we're at nine for this week. so we don't have obviously june yet, but you fell off a cliff, and you've come back, are we ever going to get back to the levels that we saw january, february and march unlikely but the s.e.c. is concerned here, there have a lot been more filed, a lot more ipos and let me show you what is being filed lately and give you a sense on a week by week basis, may 3rd to may 7th, ten filed and then seven, four, starting to come back, nine, ten, sizes are getting larger as well and even the performance guys has started to improve when we take a look at our indexes, remember we have two of them, we may one day have three of them. we have the post-deal spac index where the strong performance has been lately. this does include by the way deals that have closed but only recently. so a deal that de-spacced,

right, no longer a spac, no longer a spac that announced its deals which is what most of the names in this index are. but you can see, it has moved up sharply. just in the last week, or so, and yes, there it is thank you. and that is helping give a little more propulsion to this area that we followed so closely, and of course, at the beginning of the year, given it was dominating the capital markets in so many ways and there are some names in particular, this blue owel i wanted to look at, because with these spacs, a second look, sort of ten bucks, like so many are, and suddenly you get a second look, and there it is. i mean look at the move that stock has had. 70% in a month, today, goldman comes out and says, you know, we see sort of 28 times, we think it is an appropriate multiple, similar to aries and similar to a couple of other names out there, and they like the business model gp solutions they own a lot of the gp, this

is the old dial from newburger and owl creek and a few others, but they like the outsized growth 1850 price target. let's keep an eye on it. >> i was surprised with the bounce-back on a lot of these. and a lot of them, some of the spacs -- >> clover -- >> i was going to say the short squeeze has helped some of them. >> we haven't take continue out yet even though the deal has closed so that helps. >> so you have clark fisker moving. even though you had lordstown. cciv >> it got wrapped up. >> you know what hasn't come back at all? >> what? >> yours >> mine? >> jagdeep singh, quantumscape >> oh, quantumscape. >> i feel as though we no longer have -- we don't talk about draft kings anymore as a spac. we shouldn't talk about -- >> these are now companies, they're no longer, they aren't just companies

>> they are companies. we are probably going to make a third index to look at companies that once were spacs because it will be interesting to see how they perform because that will be an important part of information. >> it is also the long-term trend of capital raising 100 billion this year, and eight years ago, it was one billion, right? >> yes. >> so the long-term growth has been explosive >> we have didi coming up and i hope there is enough money and it is interesting you can have such tension between our two country, between china and the united states and here is a deal coming up. >> and obviously a traditional ipo -- >> isn't it interest caning, the tension behind us but due see president biden saying we have to scrutinize the capital markets. you know who is talking about doing that >> yes, i do i remember you were talking about it. >> yes, i was. >> yes, you were. >> yes i was >> thank you i don't think we should have -- look, there should be no -- they put every restriction in the world on us including joint

ventures with bogus companies, but we give them unfettered access it's wrong >> it's true although i think, is it blackrock that is now going to be the first to fully own a mutual fund in that country? >> really? >> that story crossed the wire. >> progress. baby steps for sure. >> that's possible. >> cramer's "mad dash" and a countdown to the opening bell and futures as we try to put this busy week to bed. back in a moment these days you have to keep everything moving and reinvent the wheel. with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm. with watson on a hybrid cloud

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week chewy. >> one thing you, like other americans, you have a pet. >> yes. >> and those who have pets know chewy. chewy is a classic growth stock that people have been selling. i would put it in the docu-sign mode as a matter of fact in other words, people bought pets during the pandemic, well, they reported very good quarter, but people were not happy with the additional subs. i was thrilled that a sub is buying more and more from chewy. so you can start making, you can build a model, it's a real model, about what someone will spend, and they're doing interesting things 6,000 new centers being added to the site, so you can maybe save a dog, i am going to one of them to help save a second dog, and they do a very big help, very big tele-health, for your dog, but the most important thing, david, they're bringing their own birthday cards and i'm

saying most importantly, being a little facetious, but what they do is they personalize it. the guy from amazon, he is a brilliant ceo, and what he's done is personalize something that usually is done en masse, at scale paintings of your dogs birthday cards david, if your dog gets a birthday card, believe me, you will sign on with a subscription to get that dog some food. we just but these great dog tags from them. oh, my they sent me condolence card when nvidia died >> so a lot of loyalty. >> died and went to heaven and doubled subsequently. >> nvidia. >> nvidia was some dog >> jenson loves nvidia >> nvidia was the only dog ever to have a card, an i.d. card and didn't know how to use it, and didn't get a chance to learn

take it. take it before you could get - >> self-driving chips. we love our dogs, don't we opening bell coming up

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we have a news alert on mcdonald's this morning. the fast food chain says a data breach in south korea and taiwan has exposed some customer and employee information mcdonald's has hired an outside firm to investigate. only korea and taiwan had customer personal data breached. we don't know how many people, jim, no payment information, we understand according to the journal, we're talking emails, phone numbers, addresses >> we must start asking these companies, what software were you using? what company software? when was the last time you updated? did you ever think about going to a palo alto, to a fire eye or crowdstrike. if we can find that these companies have not used their software and using typically

windows 95, then the government should go after our people, because there are companies that are not taking this seriously, even now, carl, and not taking it seriously because you've not updated your software. >> running out of excuses. >> that's right. >> we will talk to the ceo at our cnbc evolve summit this wednesday, to register, you can go to cnbc events.com/evolve, talking about adaptation and innovation and some ways risk management >> i have to tell you, i will have to ask about how big the beyond meat deal is going to be. and you have watched the stock you're interviewing him? geez, you know him better than anyone i think he is a very important figure in the whole firm, and what is he doing to the food, and mcdonald's is a thought leader and people may no understand it but they're a revered company in the industry. and when they decide to go in an area, they move the whole

needle. >> it is draftkings, talking about them, fantasy sports and gaming company. >> and i would love to start with amazon if we can this morning. because it had a good week >> yes. >> huge. >> and i mean it's amazon, right? we are still talking about a 1.6, $1.7 trillion market cap company, obviously one of the greatest growth names of all time, but it's had a good week, it's almost taken at its highs, jim, and it is being cited by some as the return to, and/or rotation away from value. >> right. >> to growth. >> and you know this, it has been historically the strongest week for the stock >> historically. >> really. >> i did not know that. >> historically. >> is that a prime day function? >> no, and i know that's coming up june 21, 22 but larry williams is one of my favorite technicians ever. he has been, when i was wearing diapers, this guy was a technician and he did some work showing about amazon this week, and that's why i highlighted it on monday, saying this is it,

what here, if you bought amazon right here, at the beginning of the week. >> that was a great call it is still underperformed dramatically so far this year it is only up 2.7% versus the s&p. it is up, historically up 13 >> correct. >> but this is a big week. >> huge. >> you read more into it than that, though or is it an anomaly of the calendar somehow for amazon? >> sometimes it is an anomaly of the calendar and in this particular case, i had no read. i said to larry, i don't know why. and he said here's basically not the reason why, here is the chart. >> a good piece in bloomberg this week about movie studio, grocery stores, pharmacy had news this week on amazon, like is it fair to even call them a tech giant anymore, they're just a giant. >> they're just a giant. >> and whatever they train, is still true. >> giant will have a new ceo really soon and it is not as if bezos is going away, remaining executive chair but for the first time ever amazon will not

be jeff bezos. >> the person taking it over, perceived to be more aggressive in terms of the demands that he puts on his team tough guy. >> do you ever think there's a point at which they might consider doing something under jassy? and again, bezos is still going to be the largest single stockholder, and chairman, and would they ever consider spinning aws >> geez, i think jassy has talked over and over again how important it is to be holistic about this remember, his role has been to cut price, cut price, cut price, he cut prices 43 times, when he came on the show and i think it's a flywheel, i would not, that would surprise me >> surprise a lot of people, it might create a lot of value, too. >> could you imagine the multiple for aws >> alexa, what would be the multiple for aws the other night i asked, i said, all right, alexa, what do you

think of, it triggered throughout the country, alexa heard, and responded i asked alexa an easy question by the way, i thanked siri last night. what did she say >> wait, when you asked -- >> i mistakely called siri alexa, and she said that was okay that was like a really bad date. never do that. hey, alexa. >> im. >> but i apologized and she was gracious and accepted my apology and this morning, i thanked her and she said you're welcome. >> well, speaking of multiples and being aggressive, snowflake, jim, is down 4%. i see piper takes it back to 290 from 312 was this investor day concerning, or not >> i didn't think so one bit i happen to tell you that frank slootman has said over and over again, he was on "mad money," if you're looking at this stock over a short period of time, that's crazy that's what he did with servicenow

and if you look at servicenow and that one, i bank, no, it is 100, this is 100 times sales and this is the most expensive stock in the market. even more expensive than zoom. but frank slootman who i know got hit recently on some other stuff on what he wants to run, i have to mention that, frank, but this is really high multiples, this, trulio, and ultimately, full disclosure, my stepson works for zoom, but i do believe those three companies, which were recommended today, in a series of pieces, and saying growth is back rbc. they're very well reasoned pieces and i think the world, trulio, snowflake, docu-sign, that was one, and i do like, well, i think you have to like zoom. >> 450 from rbc. >> yes

>> top pick. zoom will remain important and relevant in a post-pandemic world >> and look, they have great and we are just looking at them as a static company. and again, disclosure, okay, my stepson works for them and i don't. he won't tell me anything. >> of course not. >> but to think that they are a company that is just going to take all that money and let themselves do nothing? they can reinvent, theycan do anything i mean this is not gamestop, guys this is a company with a technological edge it's a brilliant, brilliant manner no one, have you ever heard a word that is negative? >> no. >> trulio. expensive stock. these people are great executives so i'm saying they've come down enough that they are junior growth stock, not some of the, you know, we know ark, who is like championing some of these but these are ones, that if you want to buy companies that people hate now that the

pandemic is waning, i would put those, i would say you should put one of those in your pole. , portfolio. i really do. they're good companies >> buy gen, 425 this week. it did get to 468 on this fda news now, these reports of fda advisers resigning in protest. from the outside panel >> yes. >> it has always been the problem. there is no real science here. but there is a critical demand, and there is compassion, there an element of compassion. >> hope is not a strategy, if that's all that you're really talking about. >> well, there's science behind it. >> there's reduction of plaque. >> there is a question of whether it is truly effective and/or worth - >> right. >> the work i do with the american migraine foundation, with brain, doing some work with some of different foundations that involve brains, these guy, by the way, are brain surgeons,

and and they have a very limited belief in these, because they said we just need much longer, much longer trials than we can get. for maybe two years. but two years, it is so in demand of people, that they are willing to suspend it because apparently the side effects aren't that great. but we haven't to watch this because these resignations are saying no, it's not okay. >> we should also point out today, ubs goes to buy and bernstein goes to outperform the street has been impressed this week. >> i am. absolutely hopeful that that is, as david is right, that is not a reason to approve a drug but i know that there is plaque reduction, and every doctor would tell you, if you get a plaque reduction, that is good, but the doctors that i deal with, with migraines, they say the same thing over and over again, is that maybe if you started this when you were 30, long before you had the beginning of alzheimer's, that's

when you should. if you start it when your doctor says you have a good chance, no, it's not, it's very unlikely to work very unlikely to work. >> guys, on the whole back to work theme, we talked yesterday -- >> there's a segue, a transition, you're ed mcmahon. >> i'm trying. i'm here trying, doing my best doing my best, okay, smart guy >> all right carnak. >> what is buy gen. >> so back to work here, okay? we're all back to work. >> trotsky >> i thought things were going fairly well. >> it's good it's good. >> it's great that i can do that to you >> yes. >> this is an old one. >> did you see yesterday, did you happen to see, that facebook of course we talked about yesterday, but today, amazon, or yesterday as well, saying we're going to give you more flexibility on coming back to work. >> yes >> and so there is definitely a debate going on.

>> every company has >> remotely, up to two days a week, and previously, amazon indicated we want you in pretty much every day meantime, goldman sachs, and its ceo, david solomon, who has been very aggressive about getting everybody back to work, not far from here on west street, he is dropping a new single, guys, called "learn to love me". >> what? >> is that not true? >> no, no, i have no doubt it's true >> i looked. it is true >> can we just say - >> it's something called genius.com >> have you ever been to one of his concerts spell-binding. >> really? >> i can show pictures, maybe during the break, they'll let me, i have pictures of some really great black and white portraits. >> i think it is interesting and everybody at goldman is supposed be back in the office very soon. >> i think that rbkrishna and ibm sounded pretty rigorous. i shouldn't say rigorous dogmatic but i think it is case by case

and i think one of the things, it seems like the west coast, which has a terrible commute, they seem to be very concerned, and by the way it is a little ecological, too, out there. >> don't get in your car. >> i get it. >> it's here to stay there's no doubt, remote is part of most places >> usually you sell the stock of zoom and just say, look, it's over it's over. it's not over. >> well, all of this sort of filters into various decisions among cios, chief technology officers, and today morgan stanley names dell a top pick and downgrade logi-tech to equal weight is that a way to read you will need fewer headsets if you're working from home? >> i can't do that i have to say that he is one of the greatest, smartest people, the ceo of logitech, this stock has had an incredible move, and it makes sense on a valuation

basis, maybe take it down, because some people feel they are commodity products, i happen to love their products, so i don't necessarily want to draw that conclusion. because i think that, on valuations, this has moved so much it's moved so much. >> a huge run. and we all understand why. so we got s&p 4246 let's get to bob pisani. >> new highs there and that's 1.4610-year that's the one part of this puzzle that traders have gotten wrong and as a result, it seems to be a little bit offsides right now. let's look at the sectors. a little bit of a different trend today than there hasbeen in the last week and a half or so energy has always been the leader, fabulous, with oil near $70, and new highs there, but materials and industrials, lagging a little bit this week, and tech has been doing a little bit better and health care the important thing is just this whole value versus growth trade.

it is going to be very confusing to understand. but generally growth has been returning in the last couple of weeks. if you take a look at the sectors that are moving, what's growth growth is usually associated with technology stocks, and health care stocks not always and value is usually associated with industrial stocks, and energy stock, and materials stocks, some bank stock, small cap stocks, and as you can see here, growth has kind of come back in the last few weeks, and value stocks have sort of lagged behind here, and the reason this is happening is people are starting to rethink the market narrative, particularly about the impact on yields here, so remember the old market narrative and what the market has gotten right is we have a big reopening on our hands and we will have really good earnings growth, the mother of all earnings reports is coming in the second quarter, we're talking about 60% growth in earnings, in q2, and strong in q3, but decelerating a bit still growing, but the rate of change is decelerating, and what the markets got wrong is the whole inflation leading to higher yields story. it was wrong so far, it's been wrong.

inflation and supply chain issues right now, the fed maybe right, they may be transitory, a lot of worries about labor costs out there, and that's, i think a big question, we haven't resolved that, but right now, that's the thinking, so here's the current market narrative q2 and q3 is going to be peak earnings peak economy et cetera. and inflation, well, notable, still, but maybe transitory. maybe not on labor that's a big debate right now. yield still staying low. and the pain trade what would create the greatest amount of pain to the greatest amount of traders. it is the rotate into growth the value side of the equation right now. the result is we're seeing a lot of money move back into tech remember the cathie wood's stock, 50% declines, roku, zoom, they have stopped going down and in the last couple of weeks, i would say there is a tremendous rotation or not a tremendous rally but they're well off of the lows here. zoom, roku, shopify.

other stocks, in her arsenal, spotify, for example, tele-dock, they have all stopped going down and slowly creeping up volumes are not immense but you can already see people who are thought leaders like tom lee starting to talk about how to change the narrative a little bit. this is very confusing, carl, because a lot of people messaged me and said, wait a minute, why are we supposed to rotate into growth when growth is slowing down and it's a little counter-intuitive but growth tends to perform better in the back half of an economic expansion. essentially they do better in the late stages of an economic recovery and that's the main reason people are starting to talk about rotating back into growth. carl, back to you. >> all right, bob, thank you very much. as bob said, 10-year below 1.46. let's get to rick. good morning, rick. well, if you look at what's going on with treasuries and you listen to what bob said, listen, maybe treasuries aren't necessarily focusing on the

number one pricing issue of inflation. heresy, right? not necessarily. there's been an awful lot of buying that has been coming in lately reversing big short positions. and not only that, when we talk about this parking lot of cash, on the fed facility, that's over half a trillion, and continually moving up. well, consider this. the dollar funding market is flush. and if you're an overseas purchaser of treasuries, hedging your dollar is cheaper than it's ever been. so there's a lot of turnstiles of buying coming in that maybe swamping the notion of what inflation may be like down the road but it's a big mistake to write it off completely. now if you look at intra-day chart. it looks like rates are going up, but look at the fine present. we went down to 1.42 up to 1.45 1.45 is up on the day but open the chart up to a week we're down ten basis points on the week so are the long bonds.

definitely has been a buying week and everybody participating in the auctions of 120 billion this week are pretty happy about it they're making money the settlement day of course will be monday now, let's zoom that chart to march. that's the last time we're at these levels but where do we go from here, well, let's zoom back, way back, to july of 2012, and july 2012, july of 2016, we had some very key bottoms before covid, they were at one point the all time low and at 10:40 i will go over some of the technicals because maybe the major support here is around the 1.35 level and one week of the dollar index, a nice week, the dollar index has popped here a bit and that could make a difference to some of these trades and some of these issues related to hedging that dollar if you're an overseas buyer looking to get positive rates one more thing quickly. eight trillion eight 12 zeros the fed's balance sheet crossed

that mark for the first time ever carl, jim, david, back to you. >> records on that and records on household net worth this week. rick, thank you. as we go to break, take a look at some of the biggest gamers on the s&p. we were just talked about biogen 46% for the week so far. followed by lilly. catalent lumina in there, too we'll be right back. wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done.

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experience amazing at your lexus dealer. jim's been active on twitter talking aboue surtaxes why can't we create a billionaire surtax i want to put a surtax on billionaires who avoid taxes avoid is legal, evade isn't. but i'm not questioning that distinction. >> remember in law school, you learned specifically it's actually your duty to avoid. it's everybody's duty. there's no reason, the government is not going to come after you. i'm now questioning that because i think that our country is thinking about this incredible -- this was an amazing revelation about these

people, and saying okay, we're not asking for elizabeth warren to take -- we don't want to necessarily confiscate, but we have to find a way to say, listen, we know you use avoidance, and we don't know how to beat it, but we're going to put a surtax on it it's maybe you think too blunt >> it's a blunt instrument >> but i had it. >> i understand that >> have you not had it >> there's a sense you want things to be fair and it doesn't feel fair when the richest amongst us aren't paying their fair share, and they're doing it legally, but i don't know how you figure out what a surtax would be on what >> you want to look at the code and say there are parts we want to rethink the notion of avoidance forbillionaires. it's their right to avoid -- look, i think this was all anyone talked about this week. i don't know about you guys. there are fights in homes, but this was what people talked about. and the vast sum of the meeting

to me was, we can't let this go on any more in democracy we can't >> along with a parallel argument about enforcement when some of the audit rates are higher in rural southern counties >> than amongst the wealthiest >> that could change i have always been a huge believer that avoidance is good. >> we saw that with the former treasury secretaries about irs enforcement. >> i agree with that, too. >> dow up 73 we have a nice little seven-point gain in the s&p on this friday morning. don't go away. greatest challeng. governments in record debt; inflation rising, currencies falling. but i've seen centuries of this. with one companion that hedges the risks you choose and those that choose you. the physical seam of a digital world, traded with a touch. my strongest and closest asset. the gold standard, so to speak ;) people call my future uncertain. but there's one thing i am sure of...

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good friday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan. not dramatic gains we lost a little bit from the open, but still not too far away from record highs. we have consumer sentiment out, and we get back to santelli. rick >> absolutely. this is preliminary, carl, so we toss this in a couple weeks for the final. 86.4 is the headline number. a nice jump from 82.9. 86.4 is the best number since april when it was 88.3 do remember, in our pre-covid february of '20, we were at 101.0. we're a long way away. if we look at current conditions, 90.6 versus 89.4 and if we look at what lies

ahead on expectations, 83.8. let's get to the two numbers everybody is paying close attention to one-year inflation outlook moderated from 4.6, our last look, to 4%. many were looking for this number to be much closer to 4.7%, 4.8%, and do remember, 4.6% last month was the highest since '08. a lot of metrics go back to '08. if we look at the five to ten-year window on inflation, that move from 3%, our last look, the highest rate of inflation on that particular metric since the spring of 2011, that moderated to 2.8. so we do see as we have seen in many data points, a moderation there. we see interest rates modratding personally because of that, but underestimate some of the buying coming in that has nothing to do with inflation more about investments, many overseas and foreign purchases morgan, back to you. >> always giving us the context.

rick santelli, thank you >> we are 30 minutes into the trading session here the three big movers we're watchingp on this friday morning, we're going to start with snowflake, under pressure as the company sets a target of reaching $10 billion in annual product revenue by 2029. investors seem perhaps skeptical. shares down almost 4% right now. chewy in the red after reporting results. warning labor shortages and supply chain issues are impacting the product availability you can see those shares are down about 1.5% right now as well we will end, though, with dave and busters announcing a surprise profit for its first quarter. some of the key locations and places like here in new york come back online shares are up 4% right now they're up more than fifty% year to date. carl, who doesn't like a little skeeball >> and some wings. don't forget the wings >> stocks and bonds are buying into the idea growth is strong

and inflation isn't here to stay long term, but is the market too confident? steve liesman is looking at this this morning >> good morning, carl. the idea that the surge in inflation will be temporary, well, conventional wisdom. that could well turn out to be the right call, but with stocks at record high, bond level retreating below 1.50%, it seems to revolve from inflation panic to inflation serenity. joel narf tells me businesses haven't had this kind of pricing power in decades, and they will get used to it a variety of business surveys already showing business have increased cost from labor and supplies and they're passing them along to consumers. the danger here, that inflationary psychology takes hold before prices begin to ease writing, with these price increases, a person is $50,000 worse off than they were a year ago. how does that help the economy inhe's among those who believe

the fed should be in the process of paring back the asset purchases. they think the fed is going to begin talking about tapering this june, as a way to counter the development of an inflationary psychology, but doesn't think they're going to accelerate the taper as it stands now, most economists think strong growth in the second and third quarter is baked in. can't do much to alter that. the risks come later this year, early next year when the fed could be taking away stimulus as fiscal stimulus runs out and then you may at that time have an inflation problem david. >> yeah, steve, something we talk about a lot here. we'll continue to. we did at the top of the show. thank you. >> want to move on as well in the same area. retailers are raising prices due to inflation courtney reagan has a look at by how much and of course the impact on the consumer court. >> good morning, david when retailers reported their most recent quarters, many were pretty quick to celebrate selling at fuller prices, with increasing average unit retail,

or the price per item, translated into layman's terms, retailers sold more at higher prices while that could be a sign of brand health, greg portell, lead partner at kerney says that's actually inflation retailers are passing along the higher cost of freight, input cost, and scarcity as well as labor. if prices aren't higher yet, they will be by the end of the summer on most products. the percentage increase will vary, but he expects it will be passed along, almost dollar for dollar, to the end consumer. it may be transitory, if up to 24 months is transitory. that's how long it will take the supply chain to reset the costs of doing business, working through these higher costs bill lewis, who is a director at alex partners agrees inflation is already present but it's most evident in the automotive sector and at the grocery store. retailers have been conservative with inventory levels nearly across the board they're not chasing sales at any cost which also helps fuller price

selling. but retailers aren't plainly saying they're raising prices. lowe's cfo said at a bair conference this week, it's elevating our pricing ecosystem to rapidly adjust to our pricing and maintained margins at the same conference, walmart's cfo said, quote, we're going to look at price gaps which are good for us. and decide how much of that we want to pass on and how much of that we do not want to pass on david. back over to you >> elevating our pricing ecosystem. i like that one. courtney, thank you. >> creative, right >> yeah. yeah indeed let's stick with retail. our next guest tells me he's never seen anything like the numbers out of retail's u.s. sales growth for the first quarter of 2021. joining me is david berman, a frequent guest, always on retail david, great to have you let's get to the numbers themselves and start off there given your long history tracking them, you say you have never seen anything like it. what are they, and how is it

happening? >> thanks for having me on, david. i think i said this when i was on with you in september and again in december. the numbers are so big that i actually thought they made a mistake in actually adding the numbers up every retailer, you have to make sure it wasn't a mistake the total sales growth in the united states in the model for 20 years, for the quarter, were up almost 23%. i mean, almost 23%, and that includes samsung, apple, and amazon, and of course, we cross out the amazon for their numbers. but what's just as amazing actually is not just those numbers, including saa, which is samsung, apple, and amazon what's amazing is traditional sales, you know, stores,

walmarts of the world and targets, all retail, all retail u.s., that number actually is up 16%, which is a staggering number staggering >> yeah. i mean, most numbers are amazing. we have them up. i don't know if you can see them or not because i'm not sure if you have a monitor there can they continue, i guess is the question many investors will have, given the move in the stocks that has occurred already in retail. you always teach us about inventory as well and how important that is. i guess two questions. one, do you think it will continue two, how do inventories figure in here? are they starting to grow? >> well, i think inventories are actually totally key to this entire story, and we'll get to that i don't want to forget about that to talk about the earnings that have just come out, the total sales growth that i just mentioned to you, it's important to recognize that that's against easy comparisons to last year, when we started the pandemic in q1 when we compare those numbers of 23% and 16% of traditional

retail, the 16% is against zero last year. but the 23% is against 3.5% last year even on a two-year basis, when you do a two-year average, the total average sales for all of retail is up 13% on a two-year average basis. just to put in perspective, that compares, david, to about 4% to 7% rates you have 13% versus the prior five years traditional retail, if you get the average, 16% this quarter, but if you do the two-year average, up 8% that compares to 3% the last four or five years so you're looking at - >> it's a real pickup. it's an overall pickup >> but it's picking up, it's not just this quarter. now, you asked me, here's the thing, the retailers that reported numbers that have been staggering i sent your office a list of numbers, not sure if

they have them and can put them on, but you got companies like dillard's for example, one of the first retail stores to report this quarter. they earned about $7 a share, they were expected to earn $1. it's hard to believe $7, expected to earn $1. when you look at other companies like home depot, almost $4 a share, but $3 is what they were expected to earn dick's sporting goods, $4, they were expected to earn $1 target had - >> david, let me just stop you there for a moment, though, because many stock prices have moved up significantly in anticipation at least of strong sales. now, perhaps not as strong as you're talking about, especially over that two-year period given the comparisons to '19 have the stocks run enough or do you expect that, a, the sales growth is going to continue to be at this level, and b, or close to it, and b, are the stock prices going to catch up even more or pes going to start

to expand? >> i feel convinced that the stocks will head higher, even though they had a massive run, they had a break, actually when the numbers came out and some of the companies have blown away numbers, it was already baked into the process in some companies. in some it wasn't. for example, with dillard's, the first to report, the stock was up, i don't know, 30%, 40%, 50%. then all the others went up. as you can see what's happening, so the stocks have not really reacted that much in the last few weeks. they have had a brief run. i think people are looking to next year and saying look, next year, they're going to be comparisons and rates will be higher i think what happens in the next few weeks when they start to see numbers for the next quarter, because we come back to inventories. they're relatively low when you have low inventories, you have good gross margins. when you have good gross margins and with combining with the better sales because you have a lot of stores that are closed

last year, combine all that together, and the next quarter, they're going to beat numbers again handily. when they beat numbers again handily, the stocks will start going up again i'm surprised all these companies haven't actually had stock splits i don't think -- look at companies like abercrombie they have gone up almost $10 a share in cash, and their stock is at $40. >> right right. and we're looking at some of these charts which are pretty unbelievable a year ago, few would have anticipated this kind of move. david, finally, because we're more or less out of time you have mentioned inventories and how important that is. let's step back for a minute we heard from courtney reagan before you came on of key retailers talking about increasing pricing in some way they have different words for it costco talked about inflationary pressures on its conference call not too long ago step back for me, as a broader money manager here, what about inflation? are you concerned about it given what you're seeing in retail

>> so to me, the news, and this is no different than what we said in september when the ten year was at .6%. to me, the big call here is not so much about retail, which is what we focus on it's really about what this means to the bond market, to inflation. i mean, we are seeing -- i just spoke to the cfo of costco last night, and he spoke on the conference call a few days ago saying they're seeing inflation. the government numbers came out. 5% people sense the fed wants us to think this is temporary. we don't see this as being temporary. i don't see how this is possible you have too much demand and you have inventories too low i think you showed that on the screen, inventories are too low. they have to rebuild the inventories. commodity prices are going through the roof harder to find people to work in jobs restaurants are struggling to get people to work in jobs i think we have serious issues with potential inflation that's not priced into the bond market. >> david, always appreciate it our viewers do as well, given your prescience in previous

visits with us, of course, in terms of this incredible move we have seen in retail. thank you. >> thank you very much take care. >> as we go to break, look at the road map for the rest of the hour including a closer look at tesla's newest vehicle, the model s plaid. musk call td, quote, the quickest production vehicle ever made >> plus, reopening risks for the cruise line industry with another ship reporting new covid cases. >> and the sky is the limit for archer aviation, revealing its maker. we'll spee with the co-ceos and co-founders. we have a big show on "squawk on the street" so don't go anywhere

welcome back to "squawk on the street." two passengers testing positive for covid on the first north american cruise since 2020. ay a look at what it might mean for future sailing >> i was told that all close contacts of those two passengers were tested, and it all came back negative. that's an important update and a sign the cruise line's safety protocols are working. the goal is to insure they can isolate infected passengers and make sure covid does not spread. now, this is the celebrity millennium, the first sailing out of north america in 15 month. passengers were required to show proof of vaccination and a negative pcr test before boarding and routine testing throughout the cruise. both prc and antigen testing at

every port one passenger telling me the mood on board has not changed. everyone still seems to be having a great time. all activities are continuing as normal the captain is keeping everyone informed now, in order to disembark in st. martein tomorrow, all passengers are required to test negative royal caribbean says that will not impact their future sales. in 14 day, the cruise operator will be the first to set sail from a u.s. port in over a year. a fully vaccinated ship from ft. lauderdale on june 26th. carnival's first sailing will be out of texas in early july so we'll be waiting for updates, carl, on the celebrity millennium ship as it gets back to the port at st. martin tomorrow and any updates there. back to you. >> that is the key update. as you said. thank you, seema modi. >> as we go to break, tesla unveiling the model s plaid, selling for just under $130,000. separately, goldman reiterates a

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welcome back take a look at polaris stock this morning it's up more than 1%, but down over 9% in the past month of trading. looking to continue growing post pandemic, as well as start to launch its line of electric vehicle products across its portfolio. joining us is polaris ceo mike speetsen >> thank you for having me >> 2020 was really the year of the great outdoors polaris benefitted from it we saw in last quarter's earnings results you upped guidance, yet the stock has sold off since then, in part because there does seem to be this debate among investors about whether we're at peak recreation for stocks like yours. how do you see it? is that actually the case given the fact we're coming into tougher comps for the year, or do you see utin the midst of a fundamental shift in terms of consumer habits? >> i think there's a fundamental shift. one of the things we tried to

reiterate to investors is when you look at our comps versus 2019 in the second quarter, we're still going to be up 20%, 25% from a retail standpoint i think a big part of what's happening with us from the stock perspective is the supply chain and logistics challenges are having a heavy impact. for us, that's had direct impact on the amount of inventory that we have at dealers it's down over 70% and the feedback we're getting from dealers is if they had more equipment, they could sell it. by all measures, consumer demand for our products is still very high >> yeah, you and i have had that conversation about supply chain snarls and the like in the past. i mean, it really dovetails into the great inflation debate we're having more broadly right now as well how transitory do you think these supply chain bottlenecks are and the rise we have seen in input costs? >> well, you know, the thing that i'm keeping an eye on is the direct labor cost.

that's something we're working through right now. but as it relates to things like logistics, we added a surcharge to our products, and that's pretty indicative of the fact we think that's going to be largely transitory i think the commodity cost increases are as well. there's just been a lack of supply and i think as that supply comes online, that's going to naturally start to drive the prices down. and a lot of what we're contending with is paying things like expedited freight because we can't get things through cargo on the water so we're air shipping that's gone up threefold because there's a lot of ofolks doing that so it feels like there's a fair amount of this that will subside once the supply chain right sizes itself, but time will tell >> can you find the workers you need right now >> you know, it is challenging in a couple locations. you know, i think it's a combination of what's gone on with the unemployment benefits but also a red hot market. and the one thing we have going for us is we have very attractive pay and benefits, and we have a very attractive

business, and the way we run our factory. so i'm optimistic the team will work through those issues. >> let's talk trade for a second president biden is in europe meeting with g7 leaders. has already signaled we're going to likely see the end of the reciprocal tariffs in place on goods, including the duties on u.s. motorcycles imported into europe your competitor harley davidson got all the attention, all of the negative publicity in 2018 when it said it was going to have to shift some production and final assembly of its products to italy, but polaris also shipped some production to poland if we see a lifting of duties, what does it mean for your company? >> look, we had always had a plan to have manufacturing in europe for our european motorcycles. we were paying high fees just to ship the bikes overseas. so the plans that we had to manufacture in poland, which we already had a facility that was

doing off-road vehicles, we just accelerated that we also didn't make a big fanfare about it because it was really about being able to serve our local customers. the tariff impact for us, for europe, is relatively small. the larger issue for us is the over $100 million we're currently paying related to the 301 tariffs with china we're optimistic given what we have heard from the administration. we know it's probably not going to be anytime soon that those tariffs are lifted, but it feels like things are starting to move in the right direction >> let's talk evs. everybody is plowing money into evs right now. that's happening on the motorcycle and off-road vehicle side as well i certainly know you have been rolling out your plans you expect to have electric vehicle options in each of your main segments by 2025. what is it taking to get these vehicles to market from a technological and cost standpoint, and who do you expect to buy them >> look, we have struck a great partnership with zero motorcycles to help us with the power train dynamics for our

off-road vehicles. that's allowed our team to focus on what we do best, which is design of the vehicle and the suspension and handling. the capability of that vehicle is going to be beyond anything we have with any of our combustion engines you know, we think there's going to be some of our consumers who have desire to have an ev that will migrate into that space i also think it's going to attract new consumers, folks on ranches or farms where they want something quiet to move around livestock or horses as well as our vehicles get used quite a bit in large communities, in places like arizona or florida, and being able to have a vehicle that isn't loud is definitely an advantage. you know, we're spending hundreds of millions of dollars. the key is we're working with zero, who has the expertise from a power train standpoint that allows us to focus on how we take that technology and really corporate it into an off-road vehicle environment rather than trying to develop the electronics and the battery technology i think we're in a really good spot and i'm excited about what

we have coming out later this year >> yeah, thank you for joining us today especially since tomorrow is national get outdoors day. and i know your company is one of the ultimate outdoor really firms, has a lot planned thanks for being with us today get our etf spotlight as we go to a quick break. the nasdaq biotech ticker under some pressure, but up double digits over the past month of trading, and one name obviously giving a boost to the group is biogen this week's biggest gainer on the s&p by far, up almost 44% on the approval of the alzheimer's drug on monday dow has lost some gains. down 11. be right back.

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here's your cnbc news update at this hour. the g7 update is getting under way. boris johnson welcomed leaders to cornwall, england he told them it's a meeting that has to happen to learn the lessons of the pandemic so they're not repeated adam schiff is calling for an investigation entowhat he called a terrible abuse of power. "the new york times" is reporting that as part of an effort to find the sources of press leaks, former president trump's justice department secretly issued subpoenas for the email data of some democratic lawmakers, their aides, and even their families, including one minor child. >> and in a nearly unanimous bipartisan vote, oregon's house of representatives have expelled a lawmaker surveillance video shows him opening a locked door at the capitol in late december, allowing pro-trump demonstrators into the building. the protest against the election results turned vile want with four people arrested car, back to you >> thank you top global banking regulators

classifying bitcoin as the riskiest of assets potentially delaying widespread adoption our next guest company connects digital wallets with cards, allowing the spending of crypto assets in more mainstream settings jim mccarthy is former av' oinnovation and strategic partnerships helping oversee the launch of apple pay. welcome. good to see you. >> thanks for having me. >> every time we get a round of regulatory headlines around crypto, the crypto supporters argue, well, it's one more step toward legitimacy. do you see any problem with that argument >> not really. i mean, this, as you know, has been a debate ongoing for a while, and this is a natural cycle of things. as innovation occurs and regulators try to catch up on what's happening in the market around them. >> do you believe, for example, the esg issues got met with potential solutions from the crypto community we're going to work on mining,

sustainability do you think that in general, in aggregate, the community behind crypto is working to cooperate with either regulatory risk or environmental risk and that sense, looking at the long term? >> i actually do again, you need to look at it in the broader sense. if you think about the stable coins, what's happening with governments around the world, with central bank digital k currencies, what jpmorgan chase is doing, what visa is doing with using crypto based tokens to solve some of the latency and transparency issues around cross border payments. all these things are driving towards the conclusion this will become part of the main stream as we move into the future >> i want to dig into that more, jim. so much of the criticism against bitcoin specifically so far at least has been limited real-world use cases

the fact you have high fees, all the price volatility it's hindered the broader adoption as a form of payment or transaction, basically application as an actual currency, if you will. how does your company change that and does the build-out of more payment infrastructure in general mean that the tide is turning? >> thanks. that's a great question. you know, it's actually been around for quite a while one of our partners, actually it's a partner with coinbase, back in 2014, 2015, put a visa debit card against the coinbase wallet that's since expanded across the globe. we have clients that are distributing visa and mastercard debit cards today. we're seeing movement to credit cards and loyalty based cards. all of which ride the visa and mastercard world while the world still tries to figure out how bitcoin moves natively to the point of sale, most of the major wallets exist

with visa and mastercard, and that growth is happening around the world. we have clients in singapore, hong kong, u.s. moving into latin america. this is real and happening, and consumers are using those cards every day to pay >> bitcoin actually win the race in terms of those applications, or is it going to be stable coins like dm, for example >> you know, that's hard to predict. certainly, bitcoin today is the currency of choice i think that's because it has a lead in the space. i do think stable coin solves some of the volatility issues and since the market continues to evolve, we'll see more and more of that but every one of those customers i mentioned in terms of coinbase, crypto.com, they're not picking winners. they support hundreds of cryptocurrencies the customer can choose which one they want to draw down on. again, we're seeing huge pickups in volume around the world today, where people are spending against those wallets. >> finally, jim, el salvador, is

this a real thing? is it going to be repeated around the world >> you know, i think it's an interesting experiment, for sure we have seen other markets begin to move in that direction. certainly, china has been a leader i think ecuador at one point in time experimented in a similar way. you know, look, especially in the environment we're in, with hyperinflation in certain markets and currencies being devalued, it's certainly interesting to see some countries peg their currency to cryptocurrencies as opposed to other currency so like i said, still early days lots of experimentation. a lot of people will watch that closely, and we'll see what happens. i think this is part of a broader global theme >> we know emerging markets think of inflation a lot differently than perhaps we do jim, great insight please come back thanks so much >> thanks, carl. >> still to come, the cofounders and co-ceos of archer aviation we'll talk their newest electric flying taxi maker, but first, let's get a check on some of the meme names that have been

cooling off, well, things have changed a little bit today amc is up slightly gamestop is up about 4%. clover is up 10% blackberry, under pressure and bed, bath, and beyond is up slightly as well not like the crazy moves we have seen until recently. we'll be right back.

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about inflation risks? one top technician on atwh investors are missing. more "squawk on the street" coming up.

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this although there's a lot of asterisks here but just on the surface, let's go through it. nomally when we see inflationary aspects to the markets, one place you want to always look is the stock market within the stock market, you'll have energy, metals, they normally give you a good look at what inflation is being priced in, at least in terms of how the equities are moving. the problem is, if you look at the major indices, the dow, the s&p, the nasdaq, and you look at how much they have improved, how much they have moved as a function comparing the metals movement and the energy movement, well, that horse race is lost by the metals and energy they haven't kept up and there are distortions there. but in the final analysis, whether we see the inflation that many believe is going to show up and be sticky in areas like services or not, time well tell there's many reasons to think that the buy income in the treasuries is above and beyond whether the base case is

accurate or not. remember, christine lagarde was very bearish, dovish, with regard to the ecb meeting. fed's balance sheet has crossed $8 trillion for the first time, and the dollar funding market, it's been raining dollars. and that's a good thing. the fed needed to do that, maybe it's a little bit too good right now, but that makes hedging the dollar very cheap, and buying treasuries a much better deal than many other sovereigns finally, let's get to our tens tech check here's a chart going back to 2012 this is important. in 2012 july and 2016 july, you had bottoms at 1.39 and 1.37 pre-covid, the last big bottom was 1.46 the main issue is if we start not -- if we close below either of these levels, most likely the place we're going to be going is right around 1.19. 1.19 was the last tie in the

post-covid choppy trade that the treasuries had but right now, most of the screen is betting these areas hold, and do remember one thing. if you looked at all the auctions this week as i have, indirect bidders were very strong there's another signal that foreign interests are finding the right blend, mixture of rates and dollar hedging to be able to be big buyers in our auctions carl, back to you. >> that's an important white board from santelli. we're going to watch and remember that. thank you so much, rick. >> coming up on tech check this morning, a closer look at chinese ride hailing giants didi filing to go public. urat egins in the top of the ho in the meantime, "squawk on the street" is back in a moment. grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪♪ we'd be closer to the twins.

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of attention this week on that propublica story showing how the country's wealthiest billa billionaires were able to pay relatively small amounts of taxes. we're shown how they did it and why it may give more weight to a wealth tax >> good morning, david they didn't use offshore trusts or shell companies

actually, the provisions used by the billionaires to pay zero income taxes in certain years are also used by millions of americans. the first is investment losses that propublica article mentions jeff bezos paying zero income taxes for two years. that because his income was offset by losses day traders, people who have investment accounts, use them to offset capital gains and divi dividends. next up is borrowing they created effective income by taking loans against their stock. but about two thirds of american homeowners do basically the same thing by borrowing against their homes. with a mortgage. and they also deduct those interest payments. not to mention the investors who use margin loans warren buffett and michael bloomberg benefitted from the charitable deduction to help offset part of their income, but more than 11 million americans

also deduct for charity. that used to be higher before the standard deduction increases. bottom line, without a wealth tax, fixing, quote, this billionaire income tax problem is not going to be easy. david. >> yeah. something we will continue to discuss. robert, thank you. june is pride month, and all month long, we'll be spotlighting cnbc contributors, business leaders, and anchors and producers. here's kevin flynn >> here's my advice for the next generation be proud of who you are. be true to yourself. never be something you are not to please someone else your identity gives you power. use it help others with it. be fearless. be a leader. always stand up for what's right. your sense of pride in yourself is going to tear down walls and build a future that's more equitable and inclusive. go fight for it. yeah...uh... doug?

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hey, you wanna get out of here? we've got you. during expedia travel week, 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 welcome back archer aviation designing and developing electric vertical takeoff and landing aircraft is debuting its prototype make at an event in the l.a. area last night. it's fully autoen to muss

two-seater aircraft can fly 150 miles an hour for up to 60 miles that sets the stage for the next phase of engineering that has partnered with united airlines which ordered a billion dollars worth of archer evs this year. going public via the spac and joining us now the co-founders and co-ceos of archer, brad and adam gentlemen, welcome to the program. >> thanks for having us here >> thank you >> so, adam, i'll kick it off with you, this prototype that you unveiled last night from a safety standpoint, we're talking about distributed electric propulsion, vast redundancies in the aircraft's architecture which you laid out at this event, how does this compare this type of aircraft compare to traditional vertical and takeoff landing aircraft, aka, helicopters? >> thanks for the question the industry around urban air mobility is to help relieve

congestion, but we want to do it in a sustainable way we've gotten to this point where you can electrify these vehicles when you do that you can start to add multiple rotors on to these vehicles and what archer has done was built a vehicle that is fully redundant. we have 12 electric motors that, you know, can basically fly this vehicle and can have multiple rotors go out mid flight and fly fine because there's so much redundancy built into the vehicles. >> brett, faa certification, this is probably the biggest things investors at least care about right now. how quickly can you get that and how does maker enable that process and what will the process in general over the next couple years entail? >> yes that's a good question the has year and a half we've been working with the faa on certifying our certified aircraft and there was a nice basically plan in place we've agreed on for the first flight under part 23.

sorry. >> i think we were just showing some video and had the sound on. keep going. >> got it. no worries we've been working for the last year and a half on certifying our production aircraft with the faa. things are going extremely well. as you may be aware we're certified under part 23 standards under faa how you certify a general aviation airplane today our goal is to bring these in operations in 2024 the certification process is about safety and we have a road map laid out to design around safety with the faa. and maker being at the forefront of our certification efforts with faa gives us a leg up to make sure we have all the right safety and architectures and making the right decisions as we go into certifying for safety in our rotor market. >> yeah. adam, i mean you've talked about these trips and particularly commuter trips, which has gotten the attention at least until last night given the fact you have deals in places like miami,

this idea of three to four files -- three to four dollars per mile and what that means in terms of taking on ground-based transportation at those rates lu be able to make money >> yeah. so these vehicles are quite simple so it's not like a helicopter which is a very complex machine. these aircraft use 70 to 80% less parts and they have zero critical parts, which means zero single points of failure so you're not out there maintenancing these vehicles all the time like a traditional helicopter that could have as many as 200 to 300 critical points or single points of failure. you have considerably lower maintenance, fuel costs and you can utilize the vehicles much heavier because they're not just in maintenance mode the whole time just allows you while also using a ride sharing network, to just actually create a very economically viable business even at those prices >> yeah. brett, you guys laid out the case for leisure travel as well.

we haven't heard as much about that what are we talking about in terms of total adjustable snashgts. >> yeah. we look at the market and say there are millions of people that are moving around on the ground today in a car that are taking too lock and we used l.a. as an example. there's i think 50 million or so daily trips and of that, over 5 million of those trips are spending over an hour or more. it's not just those trips that we're excited about, those trips to and from the airport or to work and back, but how about all the trips we can't do today because it takes too long to do it in a car. those are trips we get excited about. what does that demand look like over time as people can move around more freely we view this as a problem where millions of people are having trouble moving around big cities in the world, and we think this is a great solution to move into the third dimension and we can travel extremely fast, 150 miles an hour point to point, really safe and as adam mentioned try to do that as affordable as possible to build a market mass

transportation solution. >> vertical air space announced deals with american, virgin atlantic yesterday jobi acquired the uber elevate, whisk which leveled a lawsuit against your company as well is there room for everyone what makes your company different? >> yeah. well, if you can imagine, you know, being able to fly in any direction, you know, 50, 60 miles, right, and flying over traffic and really just be able to get where you want to go, the possibilities here are just absolutely enormous and there's been a lot of research that's been put out there even already that this is, you know, a huge market, a huge total adjustable market, and so, yeah, we do think there are a lot of room for a lot of these players out there. archer is really excited to be leading the industry with an incredible vehicle that we were really excited to show everybody last night and i think you're going to see a lot of more exciting updates from archer

here as we continue to, you know, bring the market to life and really start to put this network together >> yeah. well on that note, adam, i think investors are focussed a few years from now going back to the presentation you had when you announced your spac deal, looks like 24 to 25, 2024 to 2025 when you ramp up production and revenue and everything else follows. is that still your target? >> we're still on track for that basically we are working with the faa on that timeline and if we're not on track we're maybe even a little ahead of schedule and everything is in place now the unveiling maker was a first step there we will be doing test flights later this year and working on our production aircraft along with the faa the last year and a half, so we're really excited about entering the market. l.a., miami, united, great team, good backing, we're really excited about entering the market in 2024. >> so that 250 number in total

aircraft production for 2025 you're sticking with that? >> absolutely. >> and finally, autonomy, when does it actually come? obviously from a profitability standpoint one would expect that enhances your margins. when do we start to see it >> that's a really great question and there's a lot of work being done right now by the faa and nasa to try to help set up, you know, a network that can handle a lot of vehicles in the air and so, you know, we're working really hard internally on our own autonomous capabilities and have to see as the future rolls out, our plan at archer is to bring to market a piloted plus four passenger vehicle and keep on pushing our autonomous capabilities and as the network really comes together here, and, you know, we're hopeful as the end of the decade rolls around autonomy becomes a viable solution, we'll be in a really great place to roll it out.

>> all right gentlemenning thanks for joining us today brett and adam >> thank you for having us. >> thank you. all right. well that pretty much does it for us on "squawk on the street." we have the s&p down a bit and nasdaq up a bit. it's been an interesting week, though, underlying all that, but you can see not much in terms of the market moves right now have a great weekend, everybody. "techcheck" starts now. ♪ good friday morning. welcome to "techcheck. i'm carl quintanilla with jon fortt and deirdre bosa coming up, what uber isn't, global ride sharing giant didi filed for an ipo and revealing a lot about the business models for uber and lyft. then an argument that stocks