treasury market. because the 10-year has been sitting just under 1.5%. again, that's probably in the same sort of position that we will be seeing 1.489%, right through about 2:15 this afternoon that does it for us today. but make sure you join us tomorrow right now it's time for "squawk on the street. good wednesday morning welcome to "squawk on the street." i'm scott walker with jim cramer at the new york stock exchange, carl's on assignment, david has the morning off, let's go right to the board and take a look at futures on this big day. we are in wait and see mode for the most part. s&p and dow would open as modest losers today nasdaq positive, our road map starts with fed day. it is the big day, the fed takes center stage we'll find out if jay powell is talking about, thinking about tapering plus, cnbc's evolve global summit is getting under way, we will hear from the head of the

imf and the ceo of novartis and gm announced boosting the global spending on evs by 30% and the ceo mary barra will join us ex choose missile a little bit. so excited about that interview coming up. this is the day. this is the big day. >> well, look, i think that we are all conditioned at this point for parsing every single word of this gentleman, of mr. powell, and you know that there can be always one word that can trigger selling. we are in a seasonally weak moment for 22 years actually, seasonally weak beginning friday, so i am concerned that at one errant moment, powell says something he shouldn't. now, this is not though october 3rd of, what, 2018, when he blew up the market, the taper tantrum. >> the destruction tantrum that was not a tantrum that was like a full-blown

time-out and what i think has to happen here is that we have to have calmer heads and just say, he said stay the course, we've seen a lot of peaking in a lot of different commodities and have not seen a peaking of freight and not a peaking in oil, and those are sticking points that can't necessarily, he's not, if he raises rates, it's not going to create more drivers, and it's not going to create more oil, so those who would say that they should, we should raise rates at all costs are not really understanding the nature of the u.s. economy >> oil, two and a half year high as we have this conversation >> copper and lumber though have rolled over. >> yes >> and they have been coming down. >> absolutely. >> and that matters. and now that the chinese have decided it should be lower, they have a command economy, so they it make it go lower. oil is again, you have a country where we're not -- why would shell be willing to sell what, for 10 billion, the most

secungd, i always wanted to use that word, permian basis, and president biden was against drilling offshore and then being anti-pipeline and we're constrained in this country which means we won't pump more and we're waiting for the saudi, the saudis are waiting for a rate count to go up and that is a strange thing it is not going up and oil companies are exercising discipline which is very rare, and by the way, don't forget, when engine one made three people on the board of exxon, well, that was a clarion call that you have to stop drilling and figure out what you're doing exxon up 10% in june it should be because look at it larry fink is in charge of a large part of the market, blackrock, and you have to start playing ball with blackrock. >> the world's biggest asset manager. >> if they don't want you to destroy the earth, or if you

want to put it the other way, to pollute a lot, then they have control, they're going to vote with the engine ones i mean you and i could be engine two. and we would go after say bp, do you think bp will oddly just say you know what, sorry, we're in the commercials and we're good >> right >> let me ask you this so the fed has been i think we can say, has been capable, very capable over the years in its actions, but it stumbled from time to time in its actual messaging, right >> absolutely. >> and that you say is the biggest risk that could come out of today. >> powell has thrown out the book powell has decided it is time to help labor there are a lot of people who watch who frankly want the fed to decide on, to be on the side of capital, but i think that jay powell said over and over again, we have got to get minority employment back to where it was, just a few years ago, it's double, which is not good at

all, he wants to put more people to work and he wants to wait, i think what powell is saying, you know what, we don't have to act as rationally as we had to as a fed, and i just think that that's very, very smart. people wanted to act rationally and he's a prudent man >> well, he's fixated on the employment problem, it's like mr. chairman, what about all of these call, mr. chairman, that inflation is out of control and you guys don't know what you are doing, but there are still 8.5 million jobs still open, mr. steve liesman, but a lot of people are saying you need a course correction because you're behind the boat with inflation, but this recovery has a long way to go such and such person from whatever news organization that's what he is fixated on >> 329.5 million and a lot of the richest people would say he could destroy us, the working person if he keeps

this up and there is no evidence whatsoever that that is the case and it kind of gals me at times that the billionaires are protecting the little guy and the ceos, and those who make $200 million are not great protectors with the little guy. >> the market has sided with the fed, giving the fed the benefit of the doubt and knows what it is doing, barclay's, had the note, that the market is no longer pricing for out of control inflation. those are the facts, right by virtue -- look at the 10-year. >> look at the 10-year. >> the 10-year, all of these people tell us, look what the what it is saying at 2 but when it is 1 1/2, other than barclay's, no one is saying anything barclay's does that piece and all of a sudden wow, stock trading, and that's why the 10-year is where it is and i don't want to bore people inside baseball but powell has said that inflation is going to run hot, but he wants to help unemployment and to me, what he's saying is the working person needs help.

now, we do have this weird imbalance with a lot of jobs, that are going begging, and then there's a lot of people who needed a job, and that's the issue. i hope he addresses that, because that's very hard truck drivers pay a good wage and we need many more truck drivers. but it is also a dangerous job, and they work very hard. but if we had more truck drivers, inflation would come down rather dramatically. >> he is also, they, the fed are thinking a lot about what is happening at the global economy, you know we're having our global evolve summit today, the imf chief was speaking there just a short time ago and shear's what she said >> here's what she said. >> there is no separation in the economic terms we see global supply chains operating and if anything, the pandemic just confirmed to us that we are interconnected and we are interen in dependent. it also sends a very positive

signal that we are dependent on mother nature. in other words, we are in a world in which there are global challenges we can only address together, and our economy is functioning in a very strongly interconnected manner. >> all right, the global summit continuing throughout the rest of the day today what a stellar lineup. >> the ceo of pfizer, mcdonald's, harley-davidson, dick's and more and it's not too late to register. >> you can head over >> a big lineup. >> that's right. >> that's right. >> cnbc.com, cnbc events.com/evolve. head over there. we have more coming up and mary barra, gm ceo don't go anywhere (♪ ♪) a fashion first, (♪ ♪)

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gm announcing just momenting ago it's upping its ev investment by some $8 billion to $35 billion through 2025, our phil lebeau joins us now with a very special guest phil >> scott, thank you very much. let's bring in mary barra, the chairman and ceo of general motors joining us from washington, d.c. this morning. mary, this is a huge commitment that general motors is making, and i know you've got two pieces of news today, you've got the upgraded guidance for the first half, as well as your ev commitment let's start first off with the ev commitment, $8 billion, two additional battery plants, and in addition to the two you've

already committed to give me a blueprint, if you could, as you look over the next couple of years. >> well, i think what we're seeing is with the strength of our platform, and our commitment, unwavering commitment to moving to evs as quickly as possible, we continue to make advancements and if you go back, just before the pandemic, we were at 20 billion as we worked through and said we were going to accelerate our move to evs, we went to 27 billion, and then because of the strength of the hummer, the hummer truck, the hummer ev, the cadillac lyric, and bright drop, and other commercial vehicle opportunities we have, in addition to the chevrolet silverado, we recognize that we needed additional battery sale capacity so we're very happy to be announcing today that we'll be adding two more additional battery cell manufacturing plants in the u.s. by the end of 2025 >> you say the strength of whether it's the hummer, whether it's the lyric, the bright drop

offerings, are you hearing back from a, your dealers or customers, whether it's on the fleet side, or elsewhere, who are saying yeah, bring it, we want more than what you initially thought? >> actually felt that is exactly it, across, whether it's bright drop, whether it's some of the commercial vehicle offerings that we're going to, have whether it's the hummer truck and suv, the cadillac lyric, great customer feedback and many of these vehicles, if they have been put on sale, they're already sold out or when we talk to our fleet customer, very, very strong demand and then we can't wait to start taking orders for the cadillac, so across the board we are seeing exceptionally strong reactions and positive response to all of our electric vehicles. >> mary, what's funding this is the fact that you're having a heck of a year in terms of profits, this morning, you raised your guidance for the first half, you now plan to make between 8.5 and $9.5 billion,

and i know you already said you expected to do better than expected, for the second quarter, and for the first half. what are you seeing in terms of the ability to manage the chip shortage because i think a lot of people are going to be surprised when they see how well you're doing in the second quarter. >> well, i have to credit our team, we have a cross functional team that is really seizing every opportunity to identify chips and make substitutions to enable us to continue to build our vehicles that are incredibly strong demand. and so with that work, with the strong performance of general motors financial, and the fact that because of the work by the team, there were some chips that we were able to make available, that allowed us to pull production from third quarter, into second quarter, all of that is contributing to the strong results that we believe we're going to deliver in the first half the chip situation continues to be very complex and very volatile but i'm confident our team is going to enable every

single vehicle possible to be built. >> mary, it's jim cramer and it is so great to see you congratulations on everything you're doing and particularly what you're doing to the environment. so glad to see you how are things going when it comes to what you're going to do with batteries. >> jim, great to see you as well and i think that the work that we're doing, not only do we have one of the largest battery labs in north america, the largest battery lab in north america, our team working in partnership with startup companies as well as with lg and the work we're doing on our own gives us confidence that we're going to be in a leadership position in battery costs as we introduce the ltm platform, the cost will go down 40% from what they are today and by mid decade we expect that will be a 60% reduction, and that's not the end. we have a technological road map to take us even further of the

battery sales while improving energy density. >> i know you as a competitive person, but also as someone who cares passionately about the environment, but i want to know, elon musk is someone who really basically tells us he's got a monopoly on everything, and a monopoly on the environment and monopoly and the batteries and i listen to you and i question whether elon musk may have competition down the road that he may not be expecting. >> well, i feel very confident with the ev product lineup that we have coming out and the fact that we have exceptionally strong brands, huge customer loyalty, and a lot of customers are going to look to that trusted, trusted vehicle and the trusted dealer to say, that's where i want it buy my electric vehicle from so then when you look at the safety and the reliability that is in general motors products, i feel that we're in an extremely strong position to lead in electric vehicles and we'll stop at nothing short of, in north america, and then in other markets, leading with electric vehicles because also, we have the

opportunity to provide a full range of vehicles, different brands, different price points, to really capture the emotional connection that people have to their vehicle. >> mary, it's scott, great to see you, and following on what jim asked you, ford's lincoln brand expecting half of its sales to be all electric models by 2026, vokes wag en is doing its thing. jim referenced tesla and elon musk who sur biggest competitor in your mind? is it ford is it volkswagen is it musk >> well, i've always taken every one of our competitors very seriously, but i also, you know, we are the number one vehicle producer in the united states, number two, in china, so we're going to keep doing what it takes to satisfy the customer, better than anyone else, and not only with beautifully designed vehicles with the right range, but also with the rightquality durability, reliability, and battery technology that, you know, we really have

significant, i think a leadership position, we've been working on battery, electric vehicles, for two decade, and so we're going to take all of that experience, the great learning that we've had with the chevrolet volt ev and now the vote euv, and put all of that energy into the brands across the board to win customers so i take everyone very seriously but i think we're exceptionally well positioned >> speaking of musk, he said recently that tesla would consider accepting bitcoin again if it became more environmentally friendly you said at the end of march, when asked on a call about whether general motors would accept bitcoin, you said if there's strong consumer demand for, it there's nothing that precludes us from doing that have you thought more about it will general motors accept bitcoin? >> our position remains the same there's nothing that precludes us from doing that, we'll be driven by our customers. certainly we want to make the whole buying and ownership experience as easy as possible

so we'll follow their lead >> mary, you're in washington today, and i know you're going to be meeting with members of congress, perhaps with some of the people in the biden administration, about extending or expanding ev incentives, particularly when it comes to the federal tax credit, the $7500 tax credit, which people who are buying evs from you are not eligible for it because you have already passed the threshold for sales. how optimistic are you that you can get that reinstated, so that when people are going into buy the hummer, that they will be able to say okay, yeah, i get the $7500 federal tax credit >> well, i think with the way that the current bill, or the legislation is being written, some vehicles will qualify, some at the top end of the market, will not, but we really think, being a first mover, shouldn't be something that's penalized as we look at ev adoption we're going further with a full portfolio, but we think to level the playing field, having everybody have that same

opportunity, is going to be important. so we continue to have those discussions, i am optimistic that there's going to be a legislative solution here. and we're going to continue to support those changes. >> and how do you feel about charging infrastructure in this country? i know you've been a big proponent of it. you guys were putting your own money behind working with some of the charging companies on developing that, do you expect more of a commitment from the biden administration >> well, clearly, it's part of the infrastructure discussion, i think the president has talked about 500,000 charging station, and what do we look at, we've done a lot of customer research on charging, people like to charge at home, if they have the opportunity to do that in their garage, and work is another opportunity to charge, we're installing chargers in our work sites and will continue to look for opportunities to encourage others to do that, but then we do need to make sure that there's charging available for people who maybe don't have designated parking at home, and that's why we're working with so many startups, and making it

easy for consumers that when they leverage our app for instance on the chef lie, chevrolet volt, they will know point a to point b, where they need to charge and a charger there available and working for them and we will continue to work and there is more to come from general motors from an infrastructure perspective. >> mary, we know you have a lineup that's unbelievable, including the hummer which you know how hard it is to get, you and i personally have talked about that, we know that you have one of the greatest battery infrastructure plants out there, how do we deal with all of the fact, raising numbers after this broadcast that phil has kindly brought us to, how do you deal with the fact that your battery business alone might be worth the whole company? >> well, i think there's tremendous opportunity for value creation for general motors, with all of the different growth

initiatives that we have the ltm platform, just yesterday, we announced a memorandum of understanding with webtech to supply altrium and hide jean fuel cells in the automotive business and you look at the strength of the platform, huge growth opportunity and what we're doing with brightdrop, we're not really in that market right now and i think that represents a tremendous business opportunity and those initial vehicles going this year to fedex express so there is tremendous growth opportunity in the services part of our business, the software, because our vehicle is really a platform with our vehicle intelligence platform which is the electrical architecture, and the services we put on that, on star is just the beginning, as well as on star insurance, so i think there are several growth engines in general motors and we're going to just keeping pushing ahead and accelerating them like we are doing today, announcing a faster pivot to evs so i see long term value creation for general motors and for our

shareholders >> mary, if you're already selling so many of your batteries why, would he would not be able to get a stake in this battery company that again i say would be worth more than the $88 billion market cap of your company >> well, i think that if you look at, you know, for an electric vehicle, it's all about the battery, and so owning that technology, and the ability that we have right now, to sell it, you know, within industry, with our partnership with honda, and other opportunities, whether it's large trucks, or locomotives, stationary power, et cetera, i think keeping that technology close, and leveraging the deep battery expertise we have at general motors, is the way that we're going to accelerate that value creation >> mary, it's phil one last question. as you guys are planning to roll out two additional battery plants, in addition to the two you already started work on, there are more than a few

skeptics out there, not just for general motors but for the ev conversion across the country, who are saying we are not going to have enough of the raw materials needed to make as many vehicles as the automakers are committing to, through 2025, let alone 2030 what do you say to the skeptics out there who really do not believe that this ramp-up will be able to take place on the time line that you guys are throwing out >> well, i think one of the things you have to focus on is because of the battery expertise that we have in the company, we've done a lot to minimize the precious metals and the different elements that are possibly going to be in short supply continue to need less of them. while improving the energy density. in addition, we have i think the best purchasing team in the industry, if not across industry, and the work they're doing to make sure that we have secure an ethically prepared all of the materials that we need from a battery perspective, that

work is going on right now, so i can't speak for the whole industry, i can just tell you the work that's going on at general motors, i have confidence that with these four battery plants that we'll have by the end of 2025, we will have the capability to make sure we're able to deliver on those evs, and our goal, and our commitment to continue to work to be number one in evs in the united states. and then in other markets around the world. >> mary, thank you very much for joining us this morning. a big day ahead of you i know for sure in washington, d.c. also a big day, jim, for us to keep an eye on shares of general motors, you heard what mary had to say, or scott, about what they're doing, their commitment, look at what shares of general motors are doing right now up more than 2.5%. this seems to happen every time they make this commitment to evs, the stock moves higher. scott, back to you. >> you are so right, this is just really big news and obviously, the stock is way too low. thank you for that amazing interview. >> phil, thank you mary, thank you as well and what you tweeted, gm is worth far

more than it is selling, you're speaking of thstk. y bet. cramer's mad dash up next as we countdown to the opening bell we'll be right back.

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time for cramer's mad dash as we countdown to the opening bell, you want to talk about a dud this morning >> we will ex pose the false narrative, oracle is trading down, the ceo called it conservative and called it a fantastic quarter, and not just because larry ellison beat my head in i -- with a two-by-four, two-by-fours are too expensive except for ellison. >> run you over with one of his yachts >> and raising the price target. jpmorgan raised the price target bmo raised the price target. barclay's says it's rage ground. stifel, citi, piper, in other words it is not going down buy the stock for heavens sake. >> and ignore the guy, lower than expectations. >> do people ever not listen to

sapper cats? i have been listening to sapper cats since being just appointed. she does not ever, ever raise numbers. >> we will keep an eye on that along with everything else the opening bell, they're ringing, as you can hear, at the big board. contrary health solutions celebrating an ipo and wmne, a digital adoption platform, celebrating an ipo >> and we've glossed over it because we had to go to break but you said the stock is trading lower than it should be even after a great run >> it doesn't matter such insensitive stocks if they -- inexpensive stocks if they can get the chips ford is sold out try to get a hummer. gm you can't get a hummer when in your life have you seen two major auto companies don't have enough inventory? and the used cars are worth so much so if you lease a gm and after three years you give it back to

them, they can sell it more than you paid for it. people don't understand the dynamics of this industry. >> how would you have answered the question that i asked mary about the biggest competitor, who is it? in the context of the conversation. >> there's two. >> musk has to take them seriously. >> is it gm? >> well, the issue with gm and why the volkswagen is it, volkswagen over in germany, they have basically decided, listen, we are european, and the europeans have spoken, they do not want internal combustible engines. so that's what vokes wag en is playing for. volkswagen makes 10 million cars i happened to be at their plant, the largest in the world 55,000 people work there, that's all the ones that are made in this country and they're the most committed i know. >> you get everywhere. you've been there? >> yes, i've been there. many times and they are so committed. because of where they are. don't forget europe is different

from here. i got a ticket for recycling by putting a green bottle in a brown thing. i thought all glass is sorted and it was a citizens arrest basically, they take this very seriously, and we are not there yet. and even though they are trying very hard so that people in america separate not separated. >> i look at the way we have opened here and obviously in a wait and see mode. >> no kidding. >> for later this afternoon. but the banks for example are placing their bets on what will happen and jay powell will not have anything substantive about tapering and the banks have been down this week, they've been down this month. >> remember treasury secretary ruben? i interviewed him when i was with "the street.com," trying to make news, and he says i want to tell you right now, nothing i say is making news, on air, on record, nothing, so if you say

for a moment that there's news here, i'm going to dispute that so i want to repeat here there is nothing in this interview that really matters. it's not going to change anything and if you say that i changed my mind, i will discredit you. >> you are saying even if he comes out today, jay powell and says, we acknowledge that we're talking about tapering, that's not new news, that they put it on the table, yes, we are talking about it, but we still have a long way it go before we actually get to that point >> are they supposed to just sit there and talk about the nets? >> the performance last night -- >> i think there is an issue here which is to admit that you're talking about it, the only way to combat is to say this is not news i admit we're talking about it this is not news we've thought about it because you see, when the hecklers, also known as the reporters, go after him, of which i've already said, just cut it to four or five people, enough, and not everybody, have

a little lottery >> liesman, liesman and liesman and liesman? >> hey, whatever but just pick five names out of a hat okay and those are the only five. but i mean really, don't you have better things to do than sit here there an take the same question over and over again i feel bad for jay he is kind of locked in. but jim cramer told me to say that, would make my head so big i couldn't get through the door, but -- >> take down the plexiglass. >> absolutely. >> jim cramer told me to say, nothing i say is news. so if you say it's news, i'm not kidding, he has to say it, he can -- i'm happy to give it to jay because i like him so. >> what's the post fed play book based on what will happen. >> people will say i have to buy the industrials, this could be a green light to buy the freeports of the world, chinese trying to fight from that. >> chemicals oh, my, chemicals, one of the reasons i want them on, that's the quintessential stock to buy, if you believe that he says,

look, nothing i say, steve, is deviant from what i've said before. >> tpaul tudor jones says it is the nasdaq to look at. >> the commodities >> saying lyondell. >> and the person in charge of the ftc. >> and spell check makes it come out line-con. >> i know you're making jokes here >> how much of an issue is her appointment -- >> none. >> to big tech. >> here's why. if you break up amazon, say, this note today, about loving amazon, it will be worth a lot more in pieces, because prime is worth a thousand dollars, if you break up facebook, then you get both facebook and you get instagram, if you break up alphabet, holy cow, bring it on, we'll sell way-mo, that would be the greatest thing in the world, apple is now a health company,

given a p/e of 32, that means netflix which we saw this morning, in a note that was just i think sage-like, there it is, right here, jpmorgan's incrementally positive they like the slate. so obviously jpmorgan has looked at the new movies and series and likes them i have not we have some people here who watch what the series are, i mean obviously netflix now no longer bound by covid, with what they used to do. >> amazon, which is, i mean it feels kind of late that jeffreys is adding it to its top pick >> they're taking off alphabet. >> yes, that was - >> amazon is your favorite. >> oh, my yes. >> to the moon as those guys used to say who were one time involved with that thing, right >> the journal though this morning has an interesting read on how apple's sort of move to become this health company - >> my head gets to too big

he came on mad money and it is the watch, how you regulate the life, my wife had the auto light go on, on your car which is years old and 160,000 miles. >> the engine light. >> yes we spent more time with the engine light than we have on our health all our lives but the engine light, the engine light. but when this watch says you've got the engine light of your body, that's going to be tim cook's legacy. the engine light this is going to be your engine light. i got a picture of my wife there with me. really great i wish i could do a closeup. but that's tied into blood pressure and know whether you're about to have a heart attack, 600,000 people die of heart attacks needlessly, that's tim cook's legacy. >> i want to know what gets the stock out of the 120s. it's been sitting there for a while. >> hasn't it >> some of the calls on the show, you know what, i own

amazon and up 200 points last week, it's not been up today. >> apple is like, i don't know - >> 125 >> forever. >> and now at 129. >> and now it is 712, and what is jensen huang doing out there? >> it's consolidating. >> when does it finish consolidating. >> because amazon was consolidating too, and when is apple going to start to move again. you cut me to the quick. i don't know i think it has to report a couple of really great quarters where we see the ancillary products, i was at the apple store yesterday to be able to say -- you asked me about that, and it was packed, we had to wear masks, but if the accessories and the service revenue stream go up, and we then give the value of apple, buy long term value of customers as we got a note here today from amazon saying they're worth a thousand dollars, then we're all going to raise estimates of what this company is worth. and that's what's going to happen that's how apple is going to go

higher and apple plus, all of the different ancillaries, apple pay, when people start valuing these for what they're worth, then the stock is going to go much, much higher. >> all right we said we're open, but we're kind inform a wait and see mode. we've got a dow that's fairly -- >> roblox. >> there is a big road block on roblox. >> getting hammered? >> i got to look at it. it's ugly it's down almost 11 partly sunny. >> they had some pretty bad numbers. sometimes things reach sub optimal and go down to the bad level. it did there. >> sub optimal. >> did you talk about draftking, and the hindenburg report and another report that cathie wood, 900,000 shares >> $42 million worth. >> how many divisions. >> not insignificant. >> hindenberg, this is, look, again, i think running an outfit where they can take this one division and sell it to somebody for a dollar and then hindenberg

is estimating, would have to say, you know, what, no harm, no foul, stock goes higher. all they have to do is get rid of that one division and it's 38s of the revenues >> let's -- it's 8% of the revenues. >> let's take the move that cathie wood made take the story out of the picture of what moved draft kings down and a number of ark stock goes down, cathie wood is, that the right play book >> she is averaging down >> is that the right play for the average joe who is in kathie wood's stocks because you get hit, you buy, you get hit, you buy. >> that historically has not been a good way to run a fund. remember, she doesn't run a fund she is always anxious to tell you that the inflows to matter and in ways i don't really fathom because it is true that they do matter, in an etf, but i would say going over hinden brg

stuff, and totally backed him, and did not back him on grow generation, because the fundamentals were too good for the pot industry notice they don't call it cannabis, cannabis is how they try to upscale it, i think that what matters to draftkings is gambling whether more people gamble and whether they have a little cost of acquisition. that's what matters. not this division that they can get rid of tomorrow. so cathie wood i think will be right. if you have, look, if you have an nfl season and more people want to gamble, will they remember this little division that's 8% of their business? in no legal gambling is one of the most important trends in the country. every state is bankrupt. >> it's not like you're the only players though. >> penn national is pretty good. >> and barstool. pretty good. >> and there's reading room for

fan duel but when you look at draftkings site and you look at the money they pour into it they want to be first mover advantage and they want to dominate and only one can stand in the way. >> another winner to highlight with you, jim, sofi is up, better than 2%, an initiation call at rosen blat, $30 a price target, and that's substantial from here because it is at $21 look, anthony noto was very good sofi is the, with the jpmorgan's of the world, sofi, paypal, it is a trinity, right, it's square, paypal, and noto injected himself into the debate. >> the trifecta of kind of paying for jamie dimon yesterday, right, the sort of -- >> we didn't get it. >> we could have gotten it he has tremendous engine for the companies that don't have to play ball with the regulators, don't have to worry about the

deposits and what ted say, jamie is basically saying, we should talk about this, these guys can do whatever they want, i think he's right that it is not fair, but life's unfair. fair's got nothing to do with it it has nothing to do with it classic wine. >> fair doesn't have anything to do with missing the boat missed the boat. >> he said so. we didn't say so he said so >> bob pisani, today's the big day and when the real work begins right? >> we have the second half of the year, to go through flattish open is the way for the fed and the inflation trade is looking very, very topee, and look at the sectors today as we always do, tech is leading early on, and health care, there's your growth sectors right there, banks, materials, you see down again today, that's what i'm talking about, that's a proxy for the inflation trade. take a look at these global copper producers, not a lot of them, london, trading in london, down antofagasta, 2%

down this has been happening for weeks. and take a look at the 52-week highs. all of these stocks top off in may. why am i bringing it up? may is the one, 20%, 27% southern copper, down 25% from the 25-week high and a proxy on the inflation trade and we'll see if that continue, and let's call it the summer trading days. the last time we had a 1% move in the s&p, it was may 20th, it was 17 days ago, that's a little strange, folks last time we had a 5% pullback, it was october those of you who don't follow these kinds of internal machinations, it is very typical for the s&p 500 to have a 10% correction from the recent high to the recent low, at least once a year, we haven't had a 5% correction since october and that's why a lot of people are sort of walking around saying gee, where's the trend, the fed will come and we will have a second half of the year and i will tell you what the big themes are right now and one

really big theme that everybody is trying to figure out, taper talk and inflation will be the main issues here obviously, but we have some tax uncertainty, a little less than it was a couple of months ago, and some concerns of profit margin erosion and maybe squeezed by input costs not offset by price increases, maybe. but the big thing is confusion on the economic cycle and this is a variant on the peak of everything, are we at everything and are he would not the variant is what is going on, with the economic cycle? there's different ways to look at this because you own different stocks for example, in the early stage of an economic cycle, you have an economic expansion, you would traditionally buy cyclical stocks and industrial stocks and material stocks, are we there or are we past that and the middle stage, that's when the growth in earnings will start, still strong, but decelerating and interest rates are still low and buying technology, and a lot of people say that's where we are right now but other people who don't agree, they say slowly moving into a later stage with higher rates and inflation, and we're

going to have high p/e ratios and go out and buy defensive stocks, the next full screen and the later stage, so what happens now, after that? where are we right now, why can't we figure out what stage of the economic cycle we're in and had the distorted effects of fiscal monetary policy with what is going on, and we have the depressionary bust to boom in months, and we've none seen that with bust to boom, and we haven't seen that before and what is coming next? will we have a boom era? and some people think we will have rampant inflation going back to the 1970s. and this is not gdp at 2, 2.5%, they are miles apart in their opinions and maybe the fed will help us out today. >> bob, thank you very much. as we head to break, take a look at how treasuries are fairing this morning a wait and see mode there as well we were talking about the

10-year note yield this morning. sitting at 1.48. i think that's the lows of the morning, too 3-year at 2.17 -- 30-year at 2 opinion 17 lower across the board, as we await the fed's policy statement due out at 2:00 p.m. eastern time we'll be right back. keeping your oysters business growing has you swamped. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo

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i still would say it's remarkable that 18 months from when this virus emerged, we have billions of vaccines produced and also production of partners. we should have over 10 billion doses we hope produced around the world. health care discussed in a post pandemic world. more good news there's the regeneron news today. >> i wish we could hold up the front page of the new york times. it basically -- california and new york are now open for business and there were fireworks on last night. i said what?

i went to my wife and said what are the fire works for she said we hit 70%. there are parts of the country that wouldn't know what 70% is, and other parts it's herd immunity and we can go anywhere we want and go around the world and go to italy and europe look, he's right >> well -- >> on that note, speaking of being able to go to europe, the eu has added the u.s. to the safe travel list >> it's incredibly important if you're an airline, if you're delta, raise numbers delta i'm not kidding. raise numbers delta. raise numbers united right now. raise numbers. >> people who are raising numbers on things like the cruise lines, the big three got an upgrade, carnival and rcl upgraded at wolf today >> right it was because the people want to cruise badly. >> but we had someone on yesterday in the 10:00 hour who suggested the good news is in the stocks it's not like there's a

one-sided view here. this is positive the other one yesterday was -- look, a lot of this move is here already. >> that is not the case in this market this is a market that uniquely does not know how to do the old days of discounting. every time someone comes out and says something new, like amazon. do we know amazon prime isn't worth more of course we know. then they say it everything moves gm moves things move. >> best cruise stock right now is what? >> norwegian they have the best balance sheet. >> best hotel change >> i go with airbnb. >> best airline stock right now? >> that's, it's always going to be southwest i have no, no compunctions >> i like the rapid fire we have to take a break. the global summit continuing throughout the day today the ceos of pfizer, mcdonald's, dicks and many more. it's not too late to register. head over tonbevtsol cc/enevve

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people know and how many times you can get discount information. here's new information this morning boston beer, citi is cutting, cutting the price target slow down the company's nielsen. she calls disconcerting. i've got to tell you, sam's too high if that's the case, boston beer i'm disconcerted if she is the stock is up now? are you kidding me right in my face >> the say the trends look really bad >> don't you think that's negative >> that sounds negative to me. >> i wouldn't be a buyer of the stock into that moment >> sam has been one of the hottest stocks in the world. a lot of that is truly because of -- >> the pandemic? like drinking during the pandemic >> no, you go in the fridge these days anyone under 30, it's filled with white claw and truly. it tastes terrible, and watch out, corona has one coming

everyone has one coming. i'm the only one that doesn't have one coming. >> high noon it's really good >> i like high west, but that's a different drink. tonight we have albertson and talking about inflation. centene and we'll talk about inflation. today is the day if pal doesn't do what i say, which is that i'm not making any news today, i'm sticking with my thesis, he's going to have to be hectored by every reporter it will be a nightmare one of the reporters is going to get under his skin he'll say enough already >> i hope he mentions your name. >> i think so. i love him i like the guy >> we got to go. when we come back, the countdown t ftoheed

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experience amazing at your lexus dealer. good wednesday morning welcome to another hour of "squawk on the street. i'm morgan brennan with scott w whopper in carl is on assignment. david has the morning off. getting a quick take on the markets ahead of the fed announcement later today

really just a narrow trading range as you would expect. the dow is down about 45 points. the s&p around the flat line the nasdaq is the outperformer up .3% that being said, a more defensive tone to the market overall as you see some of the dividend plays like utilities and real estate outperforming. we're 30 minutes into the trading session. here are the three big movers. oracle, shares dropping. guidance missing expectations as it increases investment in cloud computing operations shares down 6.5% roblox tumbling after a decline in users and spending. the stock is up double digits but down 6% in trading sofi getting a boost a buy rating noting their powerful cost advantage over legacy banks

those shares up 3.5% inflation in focus for investors. ylan has more on that. >> scott, there is a vocal chorus that believes the central bank should start talking about taking its foot off the gas at the last fed press conference, jay powell said it's not time to discuss tapering we know from the minutes there was a debate about it during the f fomc meeting and four fed officials have supported the talks including the fed vice chair. our own cnbc survey shows fed watchers believe officials should get on with it already. a majority want the fed to start tapering immediately and the average is $21.8 billion a month. now, even so, we are still a long way from a rate hike and here in washington, that is factoring into the outlook for fiscal policy. former fed chair and new treasury secretary janet yellen is testifying before the senate today and will argue the economy is still grappling with

structural challenges that existed prepandemic. like wage divergence, geographic and labor inequality climate change in her prepared testimony, she said low interest rates are an opportunity. quote, we need to make the investments at some point and now it's fiscally the most strategic time to make them. we expect the cost of federal debt payments will remain below historical levels through the coming decade. we have a window to innest in ourselves. there's an inusual dynamic here with the current fed chair expected to address the possibility of reducing monetary stimulus at the same time the predecessor makes the argument for trillions of dollars in additional government spending. >> i'm curious how you think the white house is thinking about this whole inflation issue they're obviously more focussed on the summit with vladimir putin, but they must be thinking about the inflation issue too. >> absolutely. and so far, at least, the administration and the fed have

moved in lock step in terms of the way they see inflation i can tell you from sources i've talked to inside the white house that they are confident in their inflation framework. they believe expectations are anchored and the supply chain disruptions we've been seeing are sector specific. but it will be interesting to see today if the fed starts to change its tone and sort of move along the road to reducing accommodation. if we start to see some daylight between where the fed is and where the administration is. >> ylan, thank you with more on the markets and what to expect from the fed meeting, joining us now, senior global market strategist for wells fargo investment institute. and chief economist at grant thorton. good morning to you both die an, i'll start with you. a lot of the focus seems to be on what happens with the dot plot and whether we see a move up into 2023 for our first rate hike what are you expecting do you anticipate that's the case this afternoon? >> well, i think that ylan

certainly hit the nail on the head in terms of disdents within the fed, and some are worrying how much of the inflation is a flare and how muchto persistent i think we're going to see at least one of the participants move into 2023 in terms of the tame timeframe. that puts the majority outside of 2023 and after. it's an important move you may see some within 2022 and 2023 already, the seven will starting to move up their rate hike expectations. that will be dovish, but i think it's an important shift for the fed to acknowledge that even though the economy is performing much stronger than they thought, inflation is performing much stronger, but on the downside, they're disappointed and chair powell will make this point on the progress in employment >> what's priced into the market here at these level right now? i mean, i realize we're slightly lower on snap s&p, but we're near record highs.

if you start to see even the slightest bit more hawkish tone or i guess even whether it's a move in the dot plot or talk of talk of tapering, could that actually change the dynamic for the market this afternoon? >> so what we would say is we think the market is leaning a little bit toward a hawkish surprise what the real surprise could be on the dovish side if the fed says we're going to stick to our guns, what you could see is rates kind of move higher a little bit from the standpoint of the curve steepening you could see stocks really truly break out. they've been going for almost three months the take away should be no matter what they do today, we just released our mid-year outlook. what most investors need to focus on in addition to the fed is you've got a really good backdrop for equities over the coming 12 to 18 months if there are any disruptions in the near term, people should be stepping in and buying stock >> i want to get your thoughts on the labor market and the fact

that this is certainly dictating and driving fed policy right now. i realize we have millions of people out of work you have record number of job openings as well something that is perhaps not being discussed as much right now is the skills mismatch that was in existence before the pandemic, and is arguably just k exacerbated by it. can the fed change that dynamic with policy right now if that is part of what's driving people from coming back into the work force? >> well, the fed has been pretty clear in terms of they realize as the economy, the labor market has gotten much tighter, many people who were not give an chance were give an chance and the net was cast wider by employers. you'll see fed chair powell talk today about the fact that we now have people disconnected from

their previous employers, and they have to search for a new job. and that's an important issue. i think it's also important that we are seeing this step up in wages at the low end of the scale. driven mostly by large corporations which is veryhard for smaller businesses to compete. that means a concentration of wages at the height of large corporations which at the moment could be a step up and be better for low wage workers but going forward could mean less dine anymore and could undermine the power of employers to demand higher wages also how many baby boomers over the age of 65 appear to have left the labor force entirely. many with less than a high school degree. this is a tight wire, and there's only so much the fed can do they can run a high pressure economy, something that janet yellen once coined the phrase

of, and that means overshooting a bit on what they thought was full employment, but it's a little different in these unchartered waters and the question is how much of the inflation we're seeing is transitory what is transitory how long is that and on the other side of it, what's more persistent >> did i hear you say to morgan you say the market is leaning toward a hawkish surprise? it seems like the market is leaning toward anything but that the ten-year is at 148 and the s&p is hanging around an all-time high. >> sure. so the reason it's going to be hawkish is because rates are lower. that's exactly it. if there's a dovish surprise, rates should go up when you think about when the fed was ignoring inflation in the spring, rates were headed higher it's more recently the market is worried about inflation and thinking the fed will turn hawkish that allows the rates to come down. it's backwards, but if the fed were to continue on the path

they were on, rates will drift higher i think that's a surprise that really is in store for markets we think rates go up and the fed surprises to the dovish side >> so diane, it seems like you think the fed is on the right path right? but why not to take the words from what ylan said, some want from a survey, why not just get on with it we know the economy is ready to roar and is already doing that why not just get on with it. rip the band-aid off and start tapering? >> i'm in that survey. i guess i have a bias. yes, i think the tapering talk, they are debating it there's no question people brought it up and more people are talking about that i think the jackson hole wyoming keynote is the perfect time to lay out the tapering the markets are expecting something by year-end and will be tapering. there is uncertainty about what the speed limit on unemployment is i think the flip side is the fed

knows and chairman powell will reassert at this meeting that hey, we've got more tools to deal with and overshoot on inflation than an undershoot on inflation, and an undershoot on employment we can always raise rates. but what the market has not priced in is the risk of that hedged bet that the fed is making and that is that they have to raise rates more rapidly in 2022 and 2023 than anyone expects. that would be a much harder kind of environment, and could trip us into a recession accidentally much sooner off of what's likely going to be an extraordinary booming economy in 2021. >> okay. we'll see what this afternoon yields diane and tamir, thank you for joining us with the s&p flat right now. cnbc evolve global summit underway business leaders around the globe are participating. ralph hammer discussing rate and inflation earlier this morning let's take a listen. >> we think that the base effects and the supply issues are more or less incorporated now and where we see the

inflation is going therefore, overall, we don't expect inflation to stay, and we think it's more of a short-term effect we see in some of the rates we expect rates to stay low and you see that again with our clients, the investment opportunities they're looking for i don't recollect you're searching for yield. the base rates are low >> i love the debate right now even at the highest levels of whether financial institutions or any ceos or companies, doesn't expect inflation to stay jamie ja jamie -- jamie dimon is hoarding cash this man saying it's transitory. >> it's a debate >> i think it depends on where so much of your business and your exposure is right? the u.s. versus we're talking about hammers and a swiss bank

as well. they're global financial institutions i'm not sure that factors into it too given the fact that on a global level, we're talking about an uneven recovery i'm also curious to see what he says at this event that's unfolding just about some of the big bets they're making with private wealth and the lower echelons of private wealth there's a strategy afoot at ubs specifically that is one wall street has been watching bullishly in recent weeks. >> our evolve global summit continuing throughout the day today. we've been telling you about the lineup we have the ceos of pfizer, qualcomm and so many more, and most importantly, it's not too late to register. you can head over to c cnbcevents.com/evolve to attend. >> coming up the meeting between biden and vladimir putin we're going to take you live to

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president putin meeting as we speak in geneva. we are there with the latest >> reporter: take a live look at the villa where this meeting is taking place they're behind closed doors and have been for some time. vladimir putin and president biden are meeting with their aids we know they finished the first sort of one on one or small group meeting between the two leaders. and then expanded to what they call an expanded bilateral with about five aides or either side. that is the estate, lavish estate on the shore of lake geneva where this meeting is taking place at the beginning of the meeting, we had a little bit of bumpiness on the media side. reporters in the room for the scrum here to get the leaders together describe some pushing and shoving between the russian side and the u.s. side as reporters jockeyed for position. you can see the russian security services as well american reporters said that the russian security team was very

aggressive shouting at them to go away. putting their hands on reporters, pulling their clothes. that's why some of the photos are as chaotic as you see as the press was man handled out of the room the audio guy never made it in in some of the pictures we can't even hear what's going on other than from the camera in the end they did get a clean picture of the handshake, nonetheless, between the two men. that was the picture that the media and the world was waiting for, as you see. vladimir putin and joe biden there shaking hands, looking each other in the eye and that is just moments before they walked in the room together for the bilateral session, and then the expanded bilateral we believe is going on right now. a little bit of bumpiness. it seemed fairly placid on the world leader side of the velvet rope >> it's interesting. you know how these things go we're down to parsing the body language of both men as well

and it seems the white house is making its case to clarify a biden head nod, if you will, to a question that was asked of him whether he trusts vladimir putin. they're already trying to explain exactly what happened and didn't happen. maybe damage control in some respects, too. >> maybe daniel control, definitely, scott. you're seeing the white house responding to reporters in the room who said that during that chaotic scrum that you saw the pictures of, reporters shouted out a question to biden saying can you trust putin? can you men trust each other reporters in the room said that biden looked at them and nodded in the affirmative, like that. but the white house press secretary quickly sending a statement to the white house press saying he was not nodding yes that he can trust putin. he was nodding his acknowledgment of the american press who are in the room in the

midst of the scrum the white house insisting he did not say he trusts vladimir putin. joe biden said he doesn't want a lot of body language enterp trump administration that's why he's -- interpretation he's not doing a side by side, because he doesn't want anyone analyzing how firm their handshake was which we all do in the absence of actual news coming out of these things we look for any indicators we can get. the indicator from the white house, sending that clarification gives you a sense of how sensitive this is every minute of this, every second of this and every head nod has been scrutinized >> i mean, this word trust is getting focussed on today, not just because of and i'm sure people are pointing to then president trump and the 2018 summit and the use of that word then, but we've had decades now of u.s. presidents sitting down with vladimir putin suggesting that maybe there's some trust to

be had to then see those hopes dashed so how realistic is it to have expectations that these two men can find common ground, especially when you're talking about, and i know you're covering this closely, cyber weapons which is on the table now? >> sure. i was at that summit in helsinki when vladimir putin sat side by side with trump and trump suggested he trusted vladimir putin's interpretation more than the u.s. intelligence interpretation of what happened. that was a head snapping moment for u.s. intelligence and for a lot of people domestically this is not going to be that right? joe biden is going in there to tell vladimir putin that he believes u.s. intelligence's assessment of what's happening in terms of some of the cyber attacks. what biden said about these is he believes that these are not attacks that are happening at the behest of vladimir putin he's not ordering them but vladimir putin has the ability to stop them from

happening from some of the cyber criminals inside russia. we'll see whether putin responds to this. the question is whether or not biden has any leverage at all. what can he do to force putin to knock it off in the old day of nuclear weapons, decades ago, those were about neutrally assured destruction. the white knuckle moment where you say if you fire yours, i'm firing mine. that's the end of you, me, and the whole world. that ends the conversation no rational person is going to go there in cyber, there are advantages to striking first, and playing defense is extraordinarily difficult. the mutually short destruction doesn't work the same way. what's the leverage for biden? we may find out. >> the rules have certainly changed. thank you n. as we head to break, let's get a check on bitcoin. it's under pressure. it's become below $40,000 right now. we'll be right bk. ayitusacst wh

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arc investment ticker. following the report out of short selling firm hindenburg. she, cathie wood does this if one of her stocks, be it tesla which she has done or coin base, takes a hit in one day, we'll shep in and buy more not just a little more a lot more and she did it again >> and because we know she has a long-term trajectory days where there's an opportunity to buy in the dip that outweighs the near-term moves you're seeing in a stock versus how she thinks about said stock which is we know years out in advance >> generally has a five-year time frame she puts a lot of money to work when she sees an opportunity to do just that and maybe that's some of the reason why draft kings have come back off the hit yesterday >> i continue to keep my eye on the spaceexploration.

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welcome back to "squawk on the street." we're live in post nine at the new york stock exchange. we're about an hour into the trading session. let's get a check on the biggest leaders in the s&p which is currently flat so far. it is names like centene health care names higher generac, dish net work leading the gains. the laggards for the s&p, you have a lot of financial names as we see treasury yields tick lower. but also oracle half earnings or i should say guidance within earnings that disappointed today. also citi group, whirlpool, the

mo mosaic company the ceo of trip adviser, welcome back >> all right nice to be here. thanks >> on a day where you're launching this product, trip plus consumers are used to sifting through travel recommendations and reviews. you're asking people to pay for premium travel content how are you going to make them pay? >> this is an amazing product. for $99 a year, our travel subsc subscription, we have discounts in flight deals, rental cars our average savings on the first purchase after someone bought it is over $300 so this is one of the subscriptions we feel is a no brainer for travelers eager to get back on the road they make their money back in the first trip >> and the timing coincides with

the reopening of travel and the economy with travel on the rise. i'm trying to understand whether this product helps you better compete with the hikes of expedia and booking holdings or the hotels make customers not book directly but come to trip adviser or are you going to facebook. people are heavily influenced on instagram on where they travel >> this is about helping all travelers get on the road. really cost effective. it's a two-sided marketplace we're talking with hotels, be they changes or independents getting them to sign up on t triptrip adv advisory, and the commission they usually pay we flow directly back to the traveler as a discount it's a zero commission proposition to sign up for trip advisory on the hotel. we float the discount to the traveler the travel is saving 15, 30% on

this day, making it just an immediate savings. what the travelers do with the savings in terms of who they take an extra couple days on vacation do they upgrade themselves to even nicer hotels? again, a tremendous savings. do they book a private tour instead of a group tour because we're offering 10 % back on all the different attractions we sell it's just a great way to up your travel and as you know, everyone is eager to get back out on the road again >> and travel budgets are on the rise now on average families spending more this summer versus 2019 levels, steve but prices are starting to creep up looking at the top hotel markets, maui the average lady rate $500 a night for a hotel look at vacation rejt in the east hampton 16 $00 a night is this a sign of travel inflation? is this sustainable? >> i'd say there's a little bit of mismatch of supply and hand as the hotel industry gets back on its feet trying to hire more

people to deliver that experience, the hotels and the travel communities while in the u.s. at least travel demand is soaring right now. but again, what better way to -- for the suconsumer to work with the level of price increases than a travel subscription for $99 to help you save money throughout steve, it's morgan i'm curious what you're seeing in terms of cross border trends. as we see the travel restrictions lifted between the u.s. and other countries, are people booking more travel abroad >> yes we have seen a nice increase again, there's still an uncertainty in some countries that people are delaying their purchase, but i think as soon as the governments announce that show vaccination proof or one-day quarantine or something, i think you'll see a lot more travelers reach to a lot more countries. in the caribbean, it's been popular for quite some time

among u.s. travelers if we're talking europe, i think there's a chance for a good summer season if they come out with the rules quickly >> meantime, when we talk about online travel platforms, advertising is such a big piece of the puzzle. and we are seeing this huge rebound afoot in advertising sales overall. for online travel sites it's not just big advertisers but also they host a lot of advertising dollars. what are you seeing in terms of that dynamic >> as travelers come back, more and more folks are looking at sites because they're big. the largest travel site in the world. the target we have advertisers are, in fact, coming back to any market specifically around any market that is open. and we're seeing the u.s. as you mentioned earlier, coming back to those 2019 levels and going beyond and that's pretty exciting >> steve, in today's fed meeting

the labor shortage that is hurting a lot of different sectors, hospitality in general will likely come up from longer lines at the airport to as a customer, not being able to get inroom dining, how do you think the labor shortage is affecting the traveler's experience right now? >> i'm afraid to say it has had an effect, advice to travelers, pack a little patience on your vacation the lines are going to be a bit longer in airports, i worry. some of the service at some of the properties isn't quite up to the levels of expectations, but really, the whole industry is rebounding i encourage travelers to get out and enjoy. remember those getting out for vac vacation, the memories with friends and family, seeing new sights and if service is a little slow, have some patience it will all work out >> good advice i'll be getting on a plane

tomorrow just for that reason. steve, thank you for joining us. scott, later today i will be speaking with the ceos of hyatt and carnival at cnbc's evolve summit and worth noting the big three cruiselines were upped in the increasing trends. >> yes, they did >> as we head to break look at shares of h&r block. 4% div hike. not translating to the stock it's down nearly 9% this hour. we're back right after this. 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.

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business travel after the pandemic than before the pandemic, but i'm not worried at all about our concord business, because it's demarket leading customers. our customers will use it going forward. we will win market share and our core business will do great in the future >> that was sap ceo at the evolve global summit discussing the impact less business travel already on the company sap not that long ago said it's continuing flexible working as well for its 100,000 or so employees. it goes back to how different companies are not only bringing people back into the office but what business travel looks like. >> it's a long road back consumers are spending brian moynihan said on "squawk b box" the card spending up over 19%. people are spending on

experiences over retail. the business travel is going to take a longer time to come back. >> yeah, and i will say after a year plus of not hearing from folks in, like, the airline industry, for example, about their forecasts for business travel to pick back up, we're starting to see glimmers that that could be shifting and changing as well it's going to be one to watch as you can see, shares of sap are flat cnbc's evolve global summit has an all star lineup all day today. it's going to continue throughout the day we have the ceos of pfizer, mcdonald's, intel. also the ceo and chairman of harley davidson. i'll be leading that discussion later today. it's not too late to register. head over to c cnbcevents.com/evolve to attend.

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welcome back to "squawk on the street." i am dominic chu market mixed as we await the fed decision and press conference from jay powell later this afternoon. from a sector perspective, health care is a relative

outperformer, as you can see here, about a half a percent gain utilities out there. while financials and industrials are lagging today. financials is a big loser down about two-thirds of one percent. within that financial sector in particular, continued weakness in the larger wall street if i weres and regional banks citizen's financial and u.s. bank corp. citi group is the worst performer in the sector and one of the biggest laggards in the s&p 500 today. on a weak today basis citi is down more than 7% after chief financial officer mark mason signalled yesterday the bank could see second quarter revenues from the trading operations fall by around 30% or so from the same period last year a lot more volatility in that period a year ago. watch city group shares down 7%. a bigger drop here keep an eye on the big banks now morgan, i'll send things back downtown to you at the new york stock exchange. >> dom, thank you.

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we maps is going public today on the nasdaq via a spac merger to discuss that and the big day today is weedmap's ceo chris, congratulations on this day. >> thank you for having me >> i'm sure you obviously have been thinking about this for a long time. why spac deal versus traditional

ipo? >> the thing that's interesting about us, we're a 13-year-old company. we're an old company, been profitable every year of our history, and we really wanted to be careful and curated with how we brought this story forward. it's rapidly growing i think everybody knows that this suite of software is incredibly complex and with the spac process it gave us more time to explain our story to investors and help with the specters in the pipe >> let me ask you about a serious piece of business if i could. is this sort of wide-ranging if you will doj investigation and your company was subpoenaed for records some time back can you give us the state of that investigation it's still ongoing >> yeah. while i can't comment on specific legal matters, what i can say is we're one of the only

marketplace that goes through this enhanced verification to be on the system. as a company run by a former lawyer, we're really a compliance-first company i think that's something that really differentiates us from a lot of marketplaces today that are relying on section 230 we're actually taking a fairly firm stand and are compliance-versed as a company. >> you're not a retailer for those who don't know exactly what you do. you're like a third party, right? you put retailers and companies together you don't have any what they call plant touching. >> that's right. we're purely a data and technology company we're enabling consumers to shop, find cannabis products, but we're also providing retailers and plans on an

engagement basis to reach consumers. on the flip side we have a full suite of software that helps brands maintain compliance, do ecom. >> i heard yelp for weed given the fact you have been profitable for so much of the lifetime so far of the business, i know you mentioned the sass subscriptions. >> in terms of how we make money, there's sass subscription rehn knew streams and businesses trying to reach consumers on the platform i'd also note that while we're not sure when federal legalization comes, but there's the chance to add new revenue streams and compliance products. we can offer it till federal

legalization comes. >> it's certainly the overhang on this entire industry right now, but every time we see another state move to legalize, do you see a bump in usage and subscriptions? >> yeah. each time a new state opens, that's an opportunity for us each time you see that, we have new york, virginia, and elsewhere. most of the states that have legalized are still very underpenetrated in terms of retailers, so we have a huge amount of growth we can capture in states like california, 07% still on the illicit side into the legal market there's a ton of growth just looking at existing states. >> i think you have 30 states now that allow some form of marijuana usage. how fast do we see it coming online, and do we have to wait

for every election cycle for this to happen we're talking years and years and years and years. >> no, we're up to 36 states in the first half of this year, we saw five or six states move, and the fact you saw these states, new york specifically, get comfortable moving it through legislatively. and now we're at this place -- any day connecticut may move forward legislatively and a bill may hit governor lamont's death. now we're at a place where states are looking enviously at other states and say that's what we can do for good jobs and taxes and things like that. >> it's a race for revenue i'm curious y you're focused cannabis right now, but as other states start to legalize other products like magic mushrooms, is that something you would expand into?

>> i don't see it now. what we're building right now with the sass some ofware and basically putting a bunch of proprietary data technology on to make these goods transactable, i see a lot of applications if we were to look outside of cannabis in terms of other traditional consumer goods where they struggle with that. i think one of the big issues is matching same product to same product across poss, and that's something we've been tackling and conquering for several years now. >> can i ask you quickly, i'm looking on twitter, and someone says there are a dozen weed shops anywhere i walk in the city where they're sending this from how does that impact you in other words, why do consumers or retailers need you if someone can literally walk down the street wherever they are, whatever city they happen to be in, and just buy marijuana at a

shop legally >> that's a great question there's several reasons for that one reason is cannabis consumers are price-conscious and we offer the best platform for deal shopping and comparison pricing. and we're in an explosion of brands huge opportunity from a revenue point to help them what's in stock at any given time constantly changes, and suddenly consumers need a lot of education. i saw infused tooth picks, and consumers want to know what are these things and so really we're a one-stop shop for helping consumers understand what is essentially a complex suite of pharmaceutical goods. we're providing the only normalized data set, educating them, and giving price savings and making ingragss realtime with the retailers, pos, or the brand's inventory system. >> good stuff. thanks for joining us. congratulations to you on this

day today. >> thanks so much. >> infused tooth picks. >> i've seen it all. >> let's bring in our senior markets commentator mark santoli. stocks are right around the flat line if you dig down deeper, it's a more defensive tone. >> bank stocks down another 1%, giving back yesterday's pop. i think the market often pulls itself into neutral ahead of the fed. i don't think it's ever been more neutral in this case, not just because of what's gone on, but in the last few days, it's been resilient the markets have found a way to stay supportive. i think investors think they roughly have things figured out in terms of what the message is, meaning there's going to have to be some acknowledgement of the inflation move but not nearly there. there's still a way for powell to say mission not done, withdrawing stimuluses is

forever. i think in general you'd have to have some kind of signal from powell that he's intending to put the market back on its heels, that basically the committee is feeling a little nervous. i don't think you can make that argument based on stocks maybe you can look at credit conditions and say, okay, maybe this is the time to start putting it in people's heads, but probably not you still have iffyness about the employment data, the way the summer is going to go in terms of people coming back to work, and then globally, china's slowdown. >> more than iffyness about the data they're legit questions. he cares deeply as he said about that very issue. >> however, the fact that they're saying we're now in an average inflation regime where we want to take the average and long-term higher average, these last two reports are going to

raise the average. so you have to have some acknowledgement of that fact. >> the commodities is a key one. china is released its national reserves it gets back to that whole transitory debate about some of these goods and some of these actual materials that said i'm kind of curious what you think is happening in the bond market and the fact that we do see yields drifting over how much is it a message from the fed versus you have all this liquidity that's hitting the market from the last fiscal stimulus bill? >> it's that and less- issue a witness. you can't underestimate how when you go from half a percent to

1.75% everything was negative. >> thanks for closing out the hour with us. >> i'll see you guys in about a half hour. >> soinlds good. that's going to do it for us for "squawk on the street. "techcheck" starts now ♪ happy wednesday. welcome to wednesday i'm jon fortt with you la and deirdre bosa carl's got the day off what wallstreetbets traders are praying for ahead of the fed. later a big investment a check on the auto, julia. >>