good friday morning. welcome to "squawk on the street," i'm scott wapner with jim cramer at the new york stock exchange, carl and david have the morning off. let's look at futures right now because they are reacting this morning to st. louis fed president jim bullard, here off

the worst levels of the morning but it's down across the board our road map does start with inflation-fueled volatility. futures tumble, as we said st. louis fed president jim bullard was on squawk, saying they're seeing more inflation than expected and do you remember on the worst week since january commodities crumbling. the price of everything from lumber, copper, gold, bitcoin all continuing to fall sharply as chinese regulators step up actions and the meme effect, new reports that the reddit fueled focus on amc, gamestop and others has upended everything from trading volumes to all large investors play the market but jim, we should start with the other, jim, bullard who made headlines on "squawk box," certainly more hawkish than maybe the market wanted to hear. >> yes, look, he has been infinitely more dovish in the sense and he really wanted the economy to come back and like jay powell wants to get as many people employed as possible but i think he pretty much said, a lot of our job is pretty much

done when it comes to buying bonds and he did kind of just say one of those things where i think people said, why is the fed still buying mortgage funds, he made common sense the only thing he didn't do was acknowledge that the commodities which everyone was really worried about on tuesday, have completely collapsed >> oh, my gosh >> it's stunning a lot of commodities are now down for the year. >> look at the declines, palladium. these numbers have fluctuated, too and volatile so they may not be the most accurate but it gives you a picture. palladium down 11% platinum 7 corn 6. copper 5 s soybeans 12. gold, the worst week in 15 months. >> what have they accomplished without raising anything, a one-two punch of powell saying don't worry, we will have to pull forward a little, but we get another outbreak, or things slow at all, we're cool. and then you send bullard out and maybe it's totally uncoordinated but it seems coincidental and bullard says look, we're going to be doing some tapering obviously because

things are good. >> you want to listen to bullard really quick and then we can talk. >> yes >> let's listen in and come back to chat. >> of course i want to hear bullard. >> we were expecting a good year, a good reopening, but this is a bigger year than we were expecting, more inflation than we were expecting, and i think it's natural that we have tilted a little bit more hawkish here to contain inflationary pressures. >> the other thing he said was, you know, at least in his mind, he sees the first rate hike jim, coming at the end of 2022. >> right. >> and it unsettles some people to hear that it is a little earlier than was thought. >> he is saying a lot of what people thought powell would say but this one-two punch is pretty much done the job, i think i think we're going to look back at today, maybe monday, tuesday, as watershed days where the fed did what it was supposed to do,

it actually literally talked things down. and interest rates are down big. but i also think, as our colleague steve liesman this morning. >> that's right. thank you for the segue there. because liesman did tweet this morning. quote, from where i'm sitting, powell has managed not just to avoid a taper tantrum, but found taper tranquility. true, he's not tapering just yet but talking about it and bonds are rallying, that is already better than in 2013, and he said and while i'm betting the fed is quote not displeased, to see some froth jim come out of stock, someone is going to notice soon that lower bond yields argue for higher stock value. and it makes a lot of sense. >> the principle part there is from where i'm sitting which we don't know. what i like about what steve said is once again, you go and do this talk like jay powell did, the 40 people raise their hands, don't you have to, don't you have to, and he says no. we'll do it, we'll take 2023 and you send bullard out and bullard who is a noted, i would

say dove, and a very thoughtful man, obviously, five, six years ago, i had quite a tiff with him. >> oh, that's right. forgot about that. >> but by gones be by gones, right? even if i'm from philly. and i think they accomplished a lot of what they wanted, they do have to raise the rate, everybody knows the economy is pretty good but jay powell is saying minority employment, can we get hispanic employment, african-american women, better, go back to what it was in 2019, but they're doing the job and i think it is rather amazing how smart they are, they are doing it so intelligently. they're getting it done without making it so that we're suddenly like, like in 2015, when janet yellen did a, you know, hey, obviously, the economy is really strong let's start the rate hike, boom and then oil collapses and she didn't do as good of a job. we have to grade these fed chiefs we can say they did a good job or not it is no different from saying that certain coaches we know did a good job or not. and i think they're doing a

great job. i don't think i should buy here, because we're seasonally, this is it, this is 22 out of 22 times, as my friend larry williams has said, these days have been down. >> so today and monday >> monday. >> when you were asked by andrew in the last hour, what would you buy here, you were emphatic, nothing. you said >> i said it was a one-two punch. he asked what would you buy here and second has the guts to come out for the hawks, and needless, a needless, and gratuitous slap at me and i do think, which by the way, he's probably going to be right, but i definitely feel that the numbers say today and monday are weak, and then the next four or five days are weak and nen you have a great trade, so -- and then you have a great trade, so let it come in that's what they're telling you. look, guys, we're trying to get the froth out. acknowledge that now they did everything but say that amc and gme should be down. you can imagine that if bullard put out someone -- >> on meme stocks. >> and said listen to meme

stocks or adam aron comes out and says i have to do 500 million shares here because this is taking the game on. or ryan cohen comes on, the punitive ceo or not really of gamestop and open up a crypto bank and 4,000 different stores. he refrained from doing that because he didn't want to be right on top when he said it and would give me too much credit. >> you know, in terms of what to do in the market let's take theses nally bad days out of the picture -- theses nally bad days out of the picture and broaden it out global equity funds show biggest inflows in three weeks while b of a flows show the sixth consecutive week of tech redemptions. >> so there you go so you buy tech. >> what's up with that >> enough with the oils. a great run. enough with the cumminss we don't know what china is going to do. who knows what china is going to do what you focus on is what you

last heard that was great. so i listened to last night, this was adobe's first quarter. >> the stock is up this morning. >> ever. ever its quarter and he was so confident. a brainy-like, brady-like. brady-like never been compared to tom brady, i just did it beautiful. nvidia, which is the name of the new dog we should get this weekend. >> nice call on nvidia. >> you let nvidia come down and then jam over. >> and then amazon, all right. let it come down and then you give the business. you know what i mean and let the meme stock, i mean enough, guys, whoever, it is actually like only two people. but yes, i mean amc, to the moon, a guy called me for drinks, 86 in doylestown, what did he call me for, to the moon, i'm not going to the moon, the moon is not where i'm going, i'm

going to go to long island but not the moon, i'm going to the hamptons >> there's a phenomenon, jim, going on in this country. >> everywhere. >> i was at a restaurant last night, and i see these three younger guys, and they see me, and they wave, and you know what they say - >> everyone's going to the moon. >> and they say to the moon. the three of them, they say to the moon. >> these guys are running too close to the sun they're off course i think that this endless buying of amc and gamestop, i find it quizzical. >> retail, wondering what you think of, we're having this conversation about what you should do in the market, and this retail presence that seems to be, forget how it ends, because we don't know how it ends. >> we don't. >> but seems to be entrenched in the market you so he that story in the journal today, about just what retail has meant to the overall market the first half of 2021, new

brokerage accounts from retail, match the total through 2020 in january alone, retail accounted for 26% of all shares traded >> this is good. we just want them to buy more than amc and gamestop. and clean energy >> i'm sure they are it's just -- >> no, they're not they're buying what kathy's doing. all these people, on the first name buying what cathie woods is doing -- >> she loves to average down and draftkings, i like draftkings, but i have to tell you, when you get companies like lenoir that report these unbelievable quarters, there is someone at the fed who says i don't like how well they're doing but that's not the way jay works. i think going back to the retail, they have to start buying good stocks and it's not buying the bad stock, okay? someone called me yesterday,

from the previous administration, said what are they doing what are the apes doing. i said i haven't been to a zoo in ages. the apes, give it to me. they call themselves the apes. i said they change their name all the time i'm glad they're in. i want them to diverse tie away from amc aaron aron is a great guy, and then gamestop and whatever is the stock of the day corsair, you see they jammed it up and the insiders were teeing it up and blow the stock right into the apes, and what did they hit the other day that was so wrong, wendy's, oh, petco, woof, woof, memesteres then he were were down there but petco. they were down they lost so much money on petco, their heads were spinning it was a belly rub it was one of those things where

i almost put a red cart out. >> since we're talking about these the high growth stocks >> adobe, they think what adobe or nvidia is in there. >> and rates are back to low and if bullard, i asked you the same i asked yesterday, this is june, bullard says a first rate increase in the end of 2022, that's like a year more than a year away. and so why not buy growth? >> let the market come down. let the froth come out and then do some buying. but let the froth come out and hope that the robinista. we had a good robinhood and not so good robinhood. we have the foundation and then we have the -- the robinhood guys have to start thinking, i don't want to buy what's hottest that is, i don't want to take it to the shorts, i want to invest.

don't take it to the shorts. that's not an investing style. to the moon is not an investing style. and take it to the shorts is not an investing style investing in great companies that are doing well, that are good growth, that's an investing style. and by the way, i don't think the value trade is over. i think that ford at six times earnings and gm, a lot of catalyst and the semis, a lot of the semis are actually cheap on next year, this cyclical, the cyclical stocks are very hard because we don't know what china is going to do and the commodities collapsed. they did it all. between jay and james, wednesday and friday, they book ended it and get the froth out. >> who else can they put out on monday saying listen, i don't understand what a meme is, and apes, what is that and we'll get those stocks down. they say i'm the most hated man in america >> meme-ers. >> they left out the most sincere man in north america. >> once we get the smoke clear, right, i still feel like there's a fair amount of - >> it is a fire.

>> today and monday. as you say, are historically bad days the smoke is going to clear. >> yes >> and then what i feel like there's a lot of confusion though in the market people don't know what to do. >> it's not a ball of confusion. listen to me you let the market come down you get the froth out. that's what is happening right now, remember, we all thought inflation was hot, right well, if you crash the commodities, which is kind of like with soybean wipes out its gain, that is going to be in the food chain of getting prices down if the darn commodities and the semiconductors guys were to start pumping and we could find some truck drivers for heaven's sake, we will say what was that surge, i say store the course with jay, i got to get a button. >> i think it was quintinilla this morning, a lot of tweets. >> the tweets are great stuff and teased a lot for us to talk about and i think he said like fed one, market zero, as the commodities are coming down.

do you think the fed is winning? >> jay powell is so much smarter than we are. can we just own that he's always been smart. >> but he zill doesn't have a crystal ball >> we're giving him the benefit of the doubt. >> he's making things happen he's prepping us so much better than janet yellen prepped us so much better than bernanke prepped us all of these people are eye cons not here the only icon is icahn, a reference to your book. >> thank you. >> i think last week, that jay has learned from the last three fed chiefs, what did he go on, when he announced three rate hikes, he was going like on a game show show, or something, i think he was on "ellen," wherever he announced there were three rate hikes, he learned his lesson and getting it all done and we're not shocked at anything he does i love that guy. i love him and by the way, i am, i don't mind being the most hated man notice world i'm jimmy chill. it doesn't bother me one bit. >> for two minutes, we will take

a break. futures we said, off to a bit of a rough start ahead of the final trading session of the week. the dow opened lower by 272. we are reacting to what jim bullard said >> it's supposed to. it's the right way to do it. >> well there's the other point of view too from tony, look relax, everything is good, i read this differently than the people. >> he owns the hawks >> apparently a lot based on the way your game ended the other night. >> trust the process t" more "squawk on the stree for the new york stock exchange, straight ahead the sound of a thousand sighs of relief. and the sound of a company watching out for you. this is the sound of low cash mode from pnc bank, giving you multiple options and at least 24 hours to help you avoid an overdraft fee. because we believe how you handle overdrafts should be in your control, not just your bank's. low cash mode on virtual wallet from pnc bank.

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♪ me and you, we're waiting for the dark ♪ up next, cramer's "mad dash," we are looking at the week today dow leaders led by apple. well, above 130. stuck in the 120s, salesforce number two, microsoft is on the list and speaking j, heofim"t mad dash" coming up as we countdown to the opening bell. no please please no. ♪ i never needed anyone. ♪ front desk. yes, hello... i'm so... please hold. ♪ those days are done. ♪ i got you. ♪ all by yourself. ♪ go with us and find millions of flexible options. all in our app. expedia. it matters who you travel with.

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pain with commodities and bond short, the re-flation trade, those guys are getting killed, including the ndf shorts so when the shorts are getting killed, what you do is you just keep, remember, don't give up, you got to keep the foot on, belichick tells us amazon, and here is a piece, sure enough, jpmorgan telling us 28 billion in advertising and kind of like the margins are amazing, that's what you do you buy amazon if you want to keep your foot right on the jugular of the people who are short bonds, short ndx, long commodities, do you this, you buy amazon >> he's all over this. >> why not >> a couple of weeks ago, you were starting to see your favorite name within the faangs. >> remember, it's amazon prime day is coming up >> next week. >> i will buy a nice pair of binoculars. >> i'm going to get them the discount will be incredible. >> right on amazon prime

but i'm waiting for prime. so should you? don't you buy a thing until prime. >> prime is like a singles day in china so that's what i want to do. i want to buy amazon again, remember, bill belichick, you're up by 30, what do you do? what would portnoy say >> try to go up 40. >> he is too busy eating pizza. >> he is. >> cramer's mad dash well, we'll be right back. the opening bell is just minutes away

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if you look at our fresh departments, we would see more inflation there than in the center store as of right now and a lot of that is driven by some of the things that happen during early, in covid, a year ago, so when you look at meat and produce, a little more inflation there. historically, that inflation has

been seasonal, so it's not something that's always permanent. and right now, we're still expecting inflation to probably be 1 to 2% as we look out. >> that's kroger ceo rodney mcmullen yesterday on "closing bell" with his take on inflation. you had albertson's earlier in the week. >> he is thinking it is more 3, 4, i thought that he was great yesterday. he was on his game the stock was down a dollar. early on and he pretty much gave you a very good wrap i do think that these are stocks that if you think inflation is coming down, they won't work as well look, here's what i think happened i think jay was on his game, bullard was on his game, they showed you they're not asleep, they get the stock market down a little, they get the froth down, and everybody wins, so i think these guys are masterful, i think that kroger is a very interesting stock if it comes in, we do have some labor talks that are coming up i do think though that as good as albertson's or kroger, it's

amazon remember, amazon, amazon's not actually doing as well with fresh food as people think i have some pretty good internal intel there. walmart's doing better but walmart's stock, it is woof, woof, and i don't mean petco. >> i know you mentioned amazon maybe in a different kind of context, but tech in and of itself is deflationary >> thank you it's disruptive, deflationary. and the reason why jay powell has been reluctant to ramp things up, is because as he has been saying, i keep hearing that we're supposed to have inflation and then we find a reason, we find something that brings it down if you go list tonight adobe call, which i really think people should do, everything they're talking about, it is about being creative, being intelligent but using digitalization to bring down costs so if you listen to him, you will say you know what, i get it, he's deflationary, and especially for small businesses. >> your point of view, on scott

meinard from guggenheim, here is what he had to say about inflation. he was speaking midday yesterday and i think he was echoing a bit to what david tepper has talked about, maybe what tony was talking about, with andrew, he said inflation is spiking, but you only reopen once, more than half of the total increase in cpi over the past two months has been due to used cars, rental cars, hotels, and air fair, and core inflation will decelerate sharply next year and supply disruptions ease and demand cools and fed hikes are still years away and a long way from inflation and employment objectives so it is a bullish view. >> i agree with that we had a lot of stimulus come in that stimulus has to run along and we thought people buying $21 an hour by not working versus $16, $17 by working when we get the benefits, when they go away, the stimulus is causing a lot of the buying, but look, i think that jay powell is saying look, a lot of these things, including the euphoria trading, the

euphoria trade doesn't last forever. people go through their money. i will get receipts. i see people spending on liquor, that does not last so i think that this is saying is even the buying is fanciful the excitement it is just a great time in america, okay? except for the people whoare sick right now we have to think about that but the people who have money, the stims, go buy liquor or buy amc and that's what younger people are doing. >> that was funny. >> yeah, i'm sorry, i have to read the opening bell. at the big board marketplace for secondhand electronics in china, celebrating its ipo, and at the nasdaq, also celebrating its ipo is atai life sciences focused on treating mental health disorders. let me ask you this and what you said why is it bullard this morning saying sort of more to the tune,

as clear as a meinard, rather than sort of this more hawkish view they're kind of talking about the same thing but one sounds hawkish, one sounds dovish, bullard versus meinard. >> i think what these guys are saying is, it's not the end of the world, it's a good time, but we are trying to figure out, we've never had, this is our first pandemic, okay it is also the ending of our first pandemic, and we know that people have a lot of cash, we know the balance sheets, the ceo of bank of america, enlessly, the balance sheets are better than they have ever been, so that means we're fine. we do have to eventually raise rates. we have to pay for bonds why are we buying mortgage bonds? good question. but at the same time, things are pretty good so let the stocks come down a little that is not an outrageous -- remember i said this day was going to be really bad i have been saying it now since larry williams, a great technician said today is really bad, monday not great. >> and you are pointing on

monday >> and dow opens down 400. >> so what it's the dow, you know, it's 400, come on, at 34,000, it's not a lot. >> where's the pain? where you may expect. >> how is jpmorgan going >> i literally have jpmorgan on my screen which you didn't even know we're channeling each other. down 1.5%. that's so funny, i literally was pulling that up. >> live long and prosper >> goldman sachs down 1.5% morgan stanley >> you should not be buying those stocks those are the wrong stocks to buy. i mean they've been rolling over for days now obviously, the fed, the interest rate, the rates are just terrible for those guys. people should be getting a mortgage right now by the way, the mortgages being offered are obscene. they are like when my dad came back from world war two. they are unbelievable. those stocks are red hot the re-flation trade is red hot.

let caterpillar come down. oils the super cycle. >> what about cummins. you tweeted something about cummins earlier. >> that's a chart for people who, i like tech, i like high growth tech, that's disruptive, and i don't think you have to buy it today. >> you have to be selective out of the faang plus? or you're just -- i know you like amazon. >> netflix has a real good slate. i think alphabet is very, very good and not expensive. if you back out the cash. >> what about microsoft. >> microsoft is fantastic. >> doing an unbelievable job any time you can, everyone is splitting chairman and ceo, he gets to become chairman, he is like sinatra, he is the chairman. >> the chairman of the board. >> i love that guy i mean yeah, people, think you like benioff so therefore you can't like him, i like him, and i'm not playing that guy. >> you can like him and liking him and liking the stock at the same time are not necessarily

the same. >> microsoft is more expensive. >> it has had a nice run. >> it had a beautiful run. and it can come in and it won't be the end of the world. look, the only thing, look, i'm not saying that ark should be down like 15%, ark being the ark-type of the stocks that don't work right now, but i am saying, i mean the highest multiple, but i am saying that twilio, a good company, and by the way snowflake is good but snowflake sells at 57 times sales that is historically a price i don't want but i do, i wish i was like being facetious but i'm not. microsoft, look at that chart. that is just beautiful but that doesn't mean it can't be as good with a reverse head and shoulders. let it come down a little. why is that such a radical view? to say let it come down. >> you keep saying let things come in, don't buy anything yet, do you think we're on the cusp of a correction of some kind >> no. i think that we have a seasonally weak period. >> that's it >> yes, a shakeout

>> but i do think that when we are greeted everywhere we go with to the moon, that is a little worrisome because that means, what, amc goes to 100? when you go on wall street bets, i'm going to say something that may not endear me to them, they are not the most thoughtful posts. most of them are so stat logical, i can't even talk about them, i can't. and i know, i share their enthusiasm for the market, but i also believe in homework, and study. >> you're still of the idea that is all going to end badly. >> i certain stocks, look, adam aron whom i love, he is from abington, seinfeld, you know, schwartzman, ax mc needs money. >> what have they done, two or three raises overat this point. >> every time he raises money, the stock goes up. wouldn't that mean you should raise more >> gamestop, what i'm saying is

they are to the moon on a couple of stocks but where are they to the moon at adobe which had a great quarter and where are they to the moon twilio, they just have two stocks and they love those stocks and they do a stock of the day that they've been wrong on every time. again, ill-advised. >> it's like you have a steal of -- a tale of two markets still. and remember the short squeeze they engineered. the short squeeze with bed bath, they took it to 34 bed bath doing well with a good quarter and bye-bye baby doing well, and they hate the shorts and that's why they went after petco, do they know what petco is, i mean woof. i'm naming my dog nvidia, right? i have the double header here. i know petco is not that good of a stock. i like chewy more and i have a dog named nvidia i've already done more work than they have. >> we're just going to continue to have this divergent markets, right? >> yes. >> two markets >> yes, until i think the amazon

microsoft market is going to do better than the meme market. and not always are we going to be comped, because, with the two the moon things. >> even if rates remain low, you don't think there's going to be a lot more money going back into the ark stocks >> well, i mean -- >> we're kind of talking about the same thing. >> i know we're not just talking about amc and gamestop. >> remember, there's the arks, senior growth and to all of us could be junior growth and then all of crazy stuff, betting on black versus red she has a lot of double zero in that portfolio. >> there's like i don't think, zoom and palantir. >> that's growing. zoom, i think it can reinvent itself i like cisco very much i thought that was a very inexpensive stock. >> i thought you were mad at

chuck robins >> he's a hawks fan. he texted me with two minutes left, saying are you watching, meaning you are watching the epic collapse, the 156 times that sixers have been up 25-1 and then this one. cisco is not an expensive stock. that is an interesting stock to buy into this weakness i like that stuff. >> so what about an intel? i'm just sort of going back -- >> intel is getting its clock cleaned. there's a really good note about staying away from intel to buy amd. >> jeffries says amd >> that was a good guess. >> over intel. >> yes >> now amd, lisa su has the milan chip, i am going to visit milan at the end of august, but i do think that amd is crushing intel. and so is arm. and i do believe that arm is going to be bought by nvidia, i think that deal is going to get done look at nvidia the guy said it was a $900 price target qualcomm is okay advanced micro will close the

deal with xilinx and that will go higher. and gelsinger comes all the time but he doesn't have the horses he is big head and no cattle right now. i like him though. >> what is an area we talked a lot about, in the days prior to today, energy, energy is wrong here it's been up too much. and the saudis don't want it to go any higher because then what is going to happen is we'll start drilling rate now we are exercising a tremendous amount of discipline. and you can't get any pipe built. but they did strike the drilling in the gulf, but i think that when i look at the oil patch, i mean somewhat upgrades oxy, i want to throttle the guy, are you kidding, now now? >> i wonder if there is any cones quence because it was said earlier in the week dps coincidence, because it was said earlier in the week, it was a couple of days ago that tepper was speaking at robinhood, no media is allowed there and stuff always leaks out and the word was tepper was talking positively about energy stocks

this is the secondhand word from allegedly what was happening. >> if i were tepper -- >> but oxy was specifically mentioned. >> look, oxy - >> i'm wondering if the upgrade follows the -- >> oxy to me, it has had a big run and it has done a lot of things that i think the balance sheet is saying that it is getting better ba what is really get, what is really getting killed by the way are the managed care stocks of the supremes going 7-2, on affordable health. on the aca did you see that >> i'm looking at this headline right now. goldman sachs, just on cnbc.com by the way, goldman sachs ramps up bitcoin trading in new partnership, with mike novogratz galaxy >> so now bitcoin -- >> i own some bitcoin. >> and this is 27,000. >> let the speculative stuff come down is what i'm saying that's all i'm say let's the speculative stuff come down

adobe, the bulls are starting a little too early i would let that come in a little and i would buy that that's one i want to buy today but i want it to come in but i am saying that, look, i am bullish. okay i'm bullish. but seasonally, and the combination of powell and bullard, take some off the table. >> june swoon. >> yes. >> and then set sail in may. that is just ee cummins or something. remember those classes you had to take, poetry. >> that hasn't worked for a while. >> the june swoon is for real, 22 out of 23 times. >> june swoon and the rest of the summer and into the end of the year will be fine. >> and it's what liesman said, rates are really low but you buy high growth and not super high growth with no earnings and 58 times sales or the ark method where they like pre-revenue. i think pre-revenue, that is kind of an oxymoron. >> looking at biotech lately

>> if you're buying, i'm telling you, i'm putting you in concussion protocol. >> the qs have been around a high, right? like a high. led by biotech since we're talking about growth and talking about tech, we're talking about the nasdaq. >> that should come in, too. that was the alzheimer's, you know - >> the biogen? >> let me tell you what i know about this you see this, this is who i work for. do you see that? it's called the american brain this says american brain foundation they're not all over the biogen drug, believe me and the price on that is ridiculous and the hmos aren't going to buy it. >> what did you make of the, let's talk about a reopen trade, you see that double upgrade on delta airlines outperform >> delta has - >> today is not a good day. >> not getting a lift. >> but i think delta, delta has had a very good run and ed

bastian comes on tv, and maybe she spend some time at delta, and he seems like he is ready, i love ed. give me a break. >> you have a funny way of showing it. >> well, i have funny ways of showing a lot of things, but it is good, i like southwest care gary kelly, he is so serious, i love that. >> alaska air by the way - >> have you ever flown alaska? not bad. >> jim, on the half time show, he used to love alaska air for a long time. he has been talking about it earlier than a lot of people. >> look at these alaska air and delta, they had a very big run i don't want to buy, i want the very big run stocks to come down, scott. that's all i'm saying. i want them to come down like the action in amc and gamestop, today, for amc, are they like joking it's not a game. it's not a game. it's investments

you know what those guys are like they think it's practice >> bob pisani, we're going to bob. >> 30 million shares guys, come on. guys. >> bob's another philly guy. he remembers the iverson practice thing >> oh, my gosh >> hey, bob. >> it was so depressing sitting there watching that game the other day. here's what's going on, folks. it's the slow dissolution of the value trade, the early cycle trade, the reopening trade, whatever you want to call it, look at the sectors today, the market is telling you what they're doing right there. so you see banks down, energy down, industrials, materials down, tech not down much okay that is the reopening trade. that's the value trade that's the cyclical trade. again, a lot of different words but that's what it is. so take a look at what's going on this week with commodities. by the way nvidia, the semis are up, amd is up, amazon is on the upside here. we've talked about the dissolution of the commodity

train. this is the reopening trade of the cyclical traded. the value trade here copper stocks. steel stocks gold mining stocks agricultural futures which you can own in etfs now, which is really remarkable how they developed etfs oil services there is the cyclical trade starting to come a bit unwound why is it coming unwound here's where we are right now. the big problem, and scott mentioned the confusion, and he's right where are we in the economic cycle? is it early cycle, mid cycle, late cycle what the heck is going on? that's why you have the crazy moves in sectors all throughout the days these days. markets are more worried about weaker growth now than they are about inflation. at least the fed is clearing up some of the problems, despite the confusion they caused in the past about this. so the fed signals are implying we are really in a mid cycle what's that. what's a mid cycle the early cycle has been buy the value stocks buy cyclical stocks. we passed that now mid cycle is where you still have growth in earnings, so strong, but they're starting to decelerate and this is the big

debate about the third and fourth quarter still strong, but starting to decelerate interest rates still relatively low and you would traditionally buy tech stocks which by the way is exactly what they are doing there week there is some debate, some of the more bearish people think we're in a late cycle or maybe heading into it, in the next couple of quarters, late cycle would imply higher rates, higher inflation, higher p/e ratios and in that situation you buy defensive stocks like consumer staples. we're not there yet but some bears out there arguing we are heading in that direction. the only thing that happened this week is the fed is trying to hold the market's hand, not just on inflation but where we are in the economic cycle, and you can see the market reaction. so the big trade all this year, buy value, buy small cap, what's been the biggest move up small cap value. that's been the biggest trade this year. what's down the most this week small cap value. they're unwinding the early cycle growth, cyclical trade

value, also starting to unwind a little bit what's been doing a little bit better this week all right, not a lot but certainly outperforming, is growth we're going from early cycle, the market now believes we're going from early cycle to at least into the mid cycle and some people want to debate when we're going to go into later cycle. so i know, scott, you've been absolutely right on. >> this the market has been confused and the only thing that clearly the federal reserve has done so far this week is at least held their hand and give some idea about okay, we have to make a decision where we are in the cycle and the market is citing that we're kind of in the middle of the cycle, let's buy tech and sell some of the cyclical stuff that's what is going on right now. scott, back to you. >> that was perfect. >> cramer was nodding your head. as you were giving your report, he really thinks you nailed, it right? >> just perfect. >> perfect >> perfect >> you know what you do with the market, jim? what you do with the market jim, is you do all the time, is you

don't overlay your ideology on it, you look at the market, you see what are the facts, what is actually moving in the market, and then you come up with an idea, what accounts for what the market is doing. >> exactly. >> we don't do it the other way around >> exactly knowing to do the right thing. >> good stuff, bob have a good weekend, bob we will see you soon. >> later this morning on tech check, adobe is among the top gainers on the s&p this morning, we have an exclusive company with that company's ceo coming up at 11:00 a.m. eastern time. looking very much forward to that interview and as we head to break, let's take a look at a week to date chart of the 10-year notes yield. look at that >> geez. >> that's right back at levels basically pre-fed. that tells you the kind of week it was, despite the drop, despite the drop, "squawk on the street" will be right back

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stop trading >> look at a chart since farley became ceo of ford >> jim farley? >> yes this is the stock to buy -- when this bottoms, you know you can go back to value the maverick is pretty much soldout. the lightning, they're spending more money per dollar than anyone electrifying. and remember what farley said on my show, shhe's gunning for mus. that's the stock to buy if you want to select a value trade >> even this a week where mary bar was on the show, boosted a stock for ev as well >> i think that stock too. after what phil told us, these are two companies that dramatically raised earnings the companies are better than expected those who are going to be bias on tuesday, on wednesday,

wednesday. i'm going to come on the show wednesday and buy them >> all right what's on mad tonight? >> flex port they are -- they know how come the ports are all jammed and i think the ports are a major part of what -- what jay does he can't teach people how to drive trucks and can't make semi conductors if he could, then we would never have to raise rates. >> he can go to the long shoreman >> yes they're killing it, but that tells me that's one of the two restaurants i own with my wife business is good >> leave me with a quick thought. dow is down about 429 -- 420 your view is no big deal >> ghost study, everything he says, and take your cue from shauns he's a brilliant man and tells you exactly what's going on. watch amazon, prime day jump today. and watch the rails.

i think the rails and ford and gm are the tell of when things are bottoming. have a great weekend >> thank you >> go to the moon. >> happy father's day. >> happy father's day to you >> i'm going fishing >> super fun good luck out there. >> thank you >> reel it in. more on the bullard comments weighing on the markets when we come back. you look a little lost. i can't find my hotel. oh. oh! ♪♪ this is not normal. no. ♪♪ so? ♪♪ right? go with us and find millions of flexible options, all in our app. expedia. it matters who you travel with.

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happy friday morning welcome to another hour of "squawk on the street. we're live from post nine at the new york stock exchange. a quick check on markets a lot of red in the last day of trading for the week the dow down 1.1%. the s&p down .75%. and the nasdaq down almost half a percent. right now we're on track for the worst week for the dow since january. we're 30 minutes into the trading session. here are three big movers we are watching in the meantime we're going to start with adobe rising after being on the top and bottom line. don't miss an exclusive with the ceo of adobe that's on the next hour on tech

check. plus delta airlines flying higher getting a double upgrade from wolf research from underperform to outperform. the firm saying it says business travel the shares are basically flat for delta. we're going to end with danish meme stock, bear with me, orphazyne. that stock is down 38 % following a 60% surge earlier this week to put context around that >> market down off the lows. still close to 400 maybe st. louis fed president partly to blame if you want to say that, because he joined "squawk box" earlier today, sounded certainly more hawkish he talked inflation mare pressures. let's listen >> we were expecting a good year, a good reopening, but this is a bigger year than we were expecting. more inflation than we were

expecting. and i think it's natural that we've tilted a little bit more hawkish here to contain inflationary pressures >> the first rate hike in late 2022 that's earlier than some anticipated. those comments certainly helping stocks to sell off a bit dom chu watching the markets and has a lot inside the market on today's moves. >> in the early action the comments have had an effect on the broader market just everything overall. but we're going to focus on a couple key spots where we are seeing some of that activity with regard to talk about inflation and interest rates and everything else about it kind of permeating through what's happening with the early action first of all, on a one-week basis to give you an idea of some of the context, right, around the markets right now, technology has now come and emerged as probably the best performing sector so far this one-week period reassuming the leadership role. the s&p on pace for a down week so far the material sector, one of the worst performers if not the worst performer on this week,

and that has to do with the inflation and commodity trade. it ramped up a lot in the last couple months here almost a year. it's coming off a bit now. speaking of, if you take a look at some of the individual commodities that have been a key focus for many traders out there, the white line is lumber and the orange line is copper. now, copper by comparison, has come off by just about 15 or so percent from the highs that we saw earlier in this kind of session the last couple weeks here lumber, meanwhile, the lumber futures have now fallen almost 50%. we'll call it about 48% from the highs that we've seen. a lot of air coming out of that commodity trade overall. still, very much higher than they were a year ago just a few months ago. but a lot of the steam coming out. that's the inflation trade coming off a little bit here despite the comments from the st. louis fed president. that is ranslating to moves within the equity markets. some of the stocks that are more levered to what were happening with commodity prices.

freeport up big year to date that white line falling precipitously here warehouser, lumber and timber products j just about flat on a year to date basis the orange line coming off the highs off the last few weeks and the mont corp. coming off despite a positive year to date performance. that trade affecting companies levered to materials and then when it comes to interest rates, not necessarily the absolute level of rates across many parts of the yield curve. however, the differential between some of the longer-term and shorter term rates, the so-called yield curve, the flattening, the smaller gap happening, right now for the two-and ten-year spread, the low us levels going back to february of this past year. look at the five-year versus the 30 the two-month versus whatever length you want. the general theme is interest rates across the curve are starting to compress a bit, and that leads us into another key part of the narrative. the bank stocks. if you look at the bank stocks

on an intraday basis, a massive move lower yesterday on the heels of the collapse with citi group shares off jpmorgan off 7%. bank of america as well. citi group, if they're lower are working on 12 straight losing sessions that tells you how much the bank stocks are reacting to the kind of interest rate dynamic morgan, that's something to watch. the material stocks and financials as well >> that was such a thorough setup. dom chu, thank you >> you're welcome. the vix is jumping back, reaching the highest level in almost a month as the reflation trade has gotten pummelled this week yield curve flattens as you heard, we have two guests joining us to talk about all of these market gyrations a little bit more jeff, i'll start with you.

do you see this quarter as certainly as conversation was, i think more at the fore last week ahead of the fed meeting do you see this quarter as peak inflation or inflation is going to shift to more of a services part of the economy? >> i think -- first, i think this has been a countertrend week i think next week we've got lots of fed speakers. 14 are scheduled to speak. i think they're likely to tone down the hawkish interpretation by the markets the market's made up its mind about what the fed is up to. look at the moves in yields since the last fed meeting i think the fed markets -- fed's message is in the context of surging c pi that's old news. dom showed us how price pressures are easing for raw materials prices but they're easing in terms of supply chain bottle necks i've watched the ports of los angeles and long beach and how

many container ships are waiting to be unloaded that was over 40 just back a few months ago it dropped to 30 at the end of april. 20 at the end of may i counted nine waiting to be unloaded this morning. it's never zero. we're past the supply jam blockage the lower price pressures will bleed through by the time of the jackson hole conference. >> i want to get your take on the markets here especially when you see financials under pressure despite the fact that we're having conversations about interest rate hikes that could according to to bullard this morning, start as soon as next year >> i think it's a macro trade where people are swinging traders from one sector to another searching for a scene. i think what's going to be more important is one, i don't think interest rates are going to do anything bullard can say that, but the fed is clear about what their target is which is really no changes for almost two years

what i think is more important is in a few weeks second quarter earnings results that tells the markets which way they want to go. i think it will show lower inflation and more muted growth. >> jeff, do you agree with cramer's view, that you could have a june swoon, you know, seasonally it's not so great but after that, you could have a nice move in the market. you know, july through the end of the year. right? i mean, david tenner telling us yesterday he thinks the stock market is okay for right now what do you think? >> i agree i think that we still have a lot of cyclical momentum here. in fact, i note that while we may be peaking in terms of the rate of growth in the u.s. for earnings and economic activity here in the second quarter, as we look at q3, we haven't hit that peek for europe europe is a major global economy. savings rates are up to 20% in europe that was because of the lockdowns. the lockdowns are going away the second half of that year,

one of the world's biggest economies is coming back with a massive amount of pent up demand that can do a lot for earning and sustain strong growth momentum throughout the second half of the year i think that cyclicals, value stocks can come back and still be a good place to find some alpha. >> you talk about earnings being a potential catalyst i'm wondering if even if companies deliver good numbers, if all the ceos come out and still are talking about inflation and it remains an open question, isn't that a bit of a risk to that next leg higher in the market if we're fixated on that question? >> it is the ceos i've heard so far flow in inflation as a factor, but they also seem to say just as strongly as they expect to recover any cost pressures through raising their own prices or productivity improvements this we don't think inflation is a big deal on earnings

we those sectors and companies have that sustained earnings growth will at least produce a modest return. we're thinking mid to high single digit, maybe double digit over the balance of the year from the market from the companies that can produce earnings >> jeff, it sounds like you think that there are perhaps some better opportunities for investors to put their money to work in other parts of the world versus the u.s., given the fact that vaccine rollouts reopening efforts are perhaps further behind is that the case or do you see opportunities within the u.s. specifically too right now >> morgan, i think both markets can do well. we have been recommending this year overweight to european markets versus the u.s and that's paid off so far as a premium there in terms of its performance year to date i think they can continue in the second half for the reasons i talked about and the reasons you mentioned. the risk is, of course, the dollar of course, we're seeing the surge in the dollar here i think if the fed would continue to move toward this path of increasing hawkishness c

that strength in the dollar would undermine the performance advantage. that's not the base case we see a relatively neutral dollar and the dollar succumbing to downward pressures between deficits, the fact that global growth is strong the dollar doesn't go up when it's strong. it goes up when it's weak. we have massive funding issues and negative rail rates. so many factors that are long-term negative for the dollar we see that turning to a positive as we look longer term. >> when i see the nasdaq higher hanging onto gains for the week, it's the best performer of the major averages month to date as well tech, the top performing sector in the s&p as well we were talking so much about that rotation from growth to value. can we say that's gone is it being reversed now >> well, i think it is i think there was a switch to the value stocks, but now it's going to come through as those technology companies and have

the ability to maintain higher growth than the average economy. we expect technology to really pull into the lead over the balance of the year and be one of the better sectors. >> thank you both so much -- >> companies are well positioned we think the u.s. market is very attractive here. >> okay. noted. thank you both for kicking off the hour with us >> thanks. we have a big show ahead on "squawk on the street" with the dow on pace now for the worst week since january don't go anywhere. energy ando every part of our universe. seismic or small it continues. (♪ ♪) change is all around us. (♪ ♪) shaped by technology and human ingenuity. we can make it work for you, and your business. let there be change. accenture. ok, at at&t everyone gets our best deals on all smartphones.

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markets selling off. the nasdaq holding onto slight gains. amazon among the exceptions. you look at the chart, microsoft a fractional winner. otherwise it's a down day for apple, alphabet, and facebook. amazon's prime day is set to kick off monday. that's a big event to look forward to we'll do that with collin, the senior analyst at baird. collin, welcome. >> good morning. thank you. >> i'll ask about amazon in a second broadly within tech in the big cap tech universe that you follow, what's your view now that the fed has spoken and the market seems to be reacting to the comments >> well, i think there are higher level of macro pressures that impact allocations and rotations, but we look at these fundamentally, and in terms of e-commerce and advertising,

trends remain positive across the board. so we view any significant or lingering pullbacks as buying opportunities for most of the big tech names >> amazon had been consolidating for a bit. it seems to have a bit of a reboot, if you will, heading into prime day how material is that event to the stock? >> yeah. well, it certainly shines a spotlight on what differentiates amazon from competition. prime subscriptions are a big piece of that. amazon's pushing more memberships and benefits for prime subscribers. and i think that really demonstrates that amazon is more of a services business now rather than a retail business. that should deserve a higher valuation and multiple i think has that's how it helps the stock. from a retail or e-commerce perspective, the prime days allow a lot more publicity for amazon, and generate sales in an

otherwise seasonally slower period here. >> how much stock do you give to the idea of amazon splitting its stock? do you think that's likely >> we get the question from clients once in a while on that. obviously it doesn't change the intrinsic value of the company but it can make the stock more accessible to other investors. particularly individual investors. we think it would have that benefit. but it doesn't change any of the fundamentals on the company. >> yeah, do you think they'll do it i mean, that's what i think we want to know do you think they'll do that >> well, i have no reason to think they will since they haven't given it much consideration to date. >> collin, i am curious about something else that's been kind of hovering over the big tech names like amazon, like facebook, like alphabet which i know you cover as well that is the anti-trust stuff and all the regulatory scrutiny there, not just abroad but here

in the u.s lena khan as the ftt chair he's been critical about big tech how does this shape up >> well, a lot of the potential regulation really gets settled in courts. and obviously discussion around big tech regulation and oversight. a lot of that is politically driven and it's bipartisan. so we do think there's the potential for more regulation, more oversight over some of these companies and industries we think the chances of any really egregious or game-changing regulation, at least surviving judicial muster is pretty low. in fact, a lot of these companies have been successful in courts previously in europe and in north america at fighting off some of the regulation a lot of its headline risk some is oversight. that's good. any major changes to business models we don't expect that. >> so you want wouldn't expect any of the companies to be

forced to break themselves up. how about acquisitions would you see a freezing of the pipeline in terms of those deals getting made >> yeah. that's a great point i think we are seeing that, in fact i think part of the higher investment spending we're seeing at companies like facebook and google are related to the fact that they probably can't rely as much on acquisitions so they have to build products and generate growth internally and so that has an effect on cash flow and profit margins, and that is something i think we're seeing now, and we will continue to see. >> i feel like you've been chasing this stock higher a little bit to be fair. i'll let you defend that if you'd like to. i mean, last july 7th, outperformed 3300. july 30th, 3500. october 29th th, 2700. now you have 4,000 what do you think about that >> well, we think it can go to

5,000, in fact we really think that over the course of the year it's potentially we're going to see amazon generate more re kvenues from the re -- it's not at an expensive valuation. they don't have the same challenging pandemic comps as other e-commerce companies they are investing for significant growth ahead i think some people are concerned about the ceo transition that happens in july that will become less of an issue as we get to the back half of the year, and as aws and advertising and subscriptions really come up to the surface, i think that's going to give investors a reason to get back into amazon. >> 5,000, that's what we'll remember from this interview >> thank you for joining us this morning. all right. let's get another quick check on

the markets this morning the dow is down 4 77 points right now. the s&p and the nasdaq are also lower. both the dow and the s&p are on pace for losses for the week and check out shares of a name that's bucking the trend, and that is smith and wessen reporting better than expected profit and sales sales up 67 %. shipments topping 70%. vista outdoors that sells ammunionti is higher on that report as well stay with us this is the sound of change. it's the sound of low cash mode from pnc bank giving you the options and extra time needed to help you avoid an overdraft fee. low cash mode on virtual wallet from pnc bank.

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welcome back to "squawk on the street." it is now time for our etf spotlight. looking atticer ibb. that is under pressure this morning like the prodder markets but still in the green for the year it's one of the best performers in the fund so far has been biogen citing that doctors will provide the company -- approve the

alzheimer's drug just approved earlier this month the shares are up half percent stocks up more than 40% this month alone. >> okay. coming up, investors hiding from inflation in real estate stocks. we'll discuss with the ceo of invitation homes next. we're back itwmiten o nus. ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you can close with more certainty.

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welcome back here is your cnbc news update at this hour. a hardliner with close lines to iran's religious establishment is expected to easily win as the country votes for a new president. currently the chief of iron's judiciary is under u.s. sanctions. moderate candidates who would have provided the strongest competition were kept off the ballot antonio gutierrez is

appointed to the second term as secretary general. a decision on spectators at the olympics will be made monday japan's top medical adviser says that the least risky option is to play without spectators, but the head of the organizing committee wants to allow up to 10,000 people to attend events four people were injured when a wild bear attacked people in japan they're expected to survive. local authorities killed the bear scott, back to you welcome back to squawk on the street we are at post nine at the new york stock exchange. it's a rough one look at where the dow is it's pushing almost a 500 point decline. that would be closer to 1.5% s&p under pressure as is the nasdaq some of it has to do with comments that the st. louis fed president, james bullard has

earlier this morning on "squawk box" where he sounded a little more hawkish than perhaps the market was expecting on inflation and when we could see the first rate hike. let's listen >> i think you could see even some up side risk to the inflation forecast but that's okay. we're targeting to get inflation above target i think we're going to achieve that in 2021 and 2022 and approach 2% inflation from the high side. i think that will be a good path for the u.s. economy, and that will help cement longer run inflation expectations at 2% so far so good we have to be nimble here. these are big numbers. >> all right that was james bullard again, said he could see the first hike in late to 2022 that's a bit ahead of where i think the market is thinking, and if you want to use the word hoping, based on where the dots are right now, the dot plot. >> which had already shifted this week.

>> it shifted forward. we're a couple in 23 we'll have to see. it's interesting that he made those comments today >> and it's worth noting that bullard is not a voting member this year but he is in 2022 which is the timeframe he's talking at it's one to watch. in terms of hawkish, he used the word hawkish multiple times in the discussion which i think in and of itself, giving the parsing we've seen by market participants, strategists et cetera this week, i think did not fall on deaf ears? >> therein lies the problem. you had the fed decision and everybody saw where the expectations on rates were and then fed chair powell came out and really tried to soothe things he sounded more dovish now you have bullard after the fact sounding more hawkish and as jeff told you in the question you asked him, you have now a week coming up where you have a lot of fed speak the market is going to move and

there's gyrations based on what it perceives it heard on when rates are moving higher. >> the next couple months are going to be -- i would imagine usually things tend to slow down in the summer. i imagine the next couple months of the fed potentially fed speak, the meeting, and jackson in august, the talk of taper, it's going to be interesting >> yeah. dow is now down a little more than 500 points. look, seasonality is at risk too, here. that's in play i should say. >> you said june swoon earlier >> today and monday could be rough and obviously we're witnessing what's happening today and maybe monday you get more follow through. once you get past that, you could have a nice move in the market, but you got to feel a little bit of pain before you get to that point. >> yeah. we're going to take our viewers through it moment by moment. contessa brewer is look agent how inflation could help

insurance stocks grab the spotlight in a meme world. con tesla? >> morgan, the onlanalysts are seeing potential for growth in insurance. rising employment generally means more policies sold but the biggest reason is that insurers in a hard market. that's pricing is on the increase analysts favorites include chubb, metlife, arch capital, and hartford the global brokers like marsh and mclennon get a boost aon and willis towers watson got a boost, but the justice department filed an anti-trust lawsuit this week. analysts believe that may have a chilling effect on mergers and

acquisitions there's a slew of buy ratings. there was an investor meeting yesterday that raised the outlook on organic growth and margins. guidance might be overshadowed by the doj trust suit since gallagher intended to buy assets from willis. the names are all down on the day so far and for the week as well insurers largely pay dividends though it may not grab attention in the meme world. morgan >> i like that contessa. i am cure rouse. as we see more people hit the roads, go out, travel as the economy reopens as well, what all of this means for auto insurers too, which quite frankly benefitted last year from people not driving as much. >> they refunded it altogether about $14 billion to consumers because of the plummet in driving. although we saw fatalities on the rise people were driving faster and

more drunk driving this year as we get on the roads, they're anticipating more crashes and the crashes are more expensive to repair. they take longer as well okay so this means a couple quarters of bumpy road for auto insurers according to the analysts i talked to. however, they think once you see the crashes increasing, that the auto insurers follow suit, raise premiums as well and so in a couple quarters that might smooth out for them. we're talking names like all state, progressive >> contessa brewer, thank you. the dow down 452 points. paring some of the worst of the losses we've been tracking this morning. the housing market has been on a tear low interest rates, inflation push to record highs y invitation homes joins us to discuss. dallas, great to have you back on >> hi, good to see you

>> as we have this conversation about inflation right now, certainly we know home prices have been jumping. as we've seen the inventory shortages, there are signs that rent prices have been jumping as well what are you seeing and how is that affecting your company? >> the markets are healthy for operators. we've seen continued acceleration through which is typically our peak leasing season in our own business we'll see about 65 % of the leases turnover between the months of march and august and it's been really healthy we had 11 % new lease growth on units in the month of april. that accelerated to 14% in may in march, it's a good indicator in terms of supply and demand factors going on in realtime and i think builders are doing their part they're trying to get deliveries out, and into the supply chain, so to speak. but cost of goods sold challenges, supply chain challenges with finished product

getting to the builders still maintains or looks to be maintaining challenge throughout the year >> and you certainly continue to be an active acquirer of more properties given the fact that there is such a tight supply of homes out there and we do see the prices on the rise, are you able to buy what you're seeking and what does that look like? >> we feel really comfortable that we can grow our business by at least a billion dollars this year in terms of new acquisition growth it is a tight environment. remember, there's still 6 million transactions every year in the u.s and about 98% of those go between mom and pops and individual investors trading back and forth there's plenty of opportunity to be an acquirer and continue to grow the business. the supply side will stay relatively tight mortgage rates are still near the floor. we're not expecting new deliveries to all the sudden come flooding into the marketplace. so i would expect that home prices stay relatively stable,

if not continue to grow in value for the homeowners in the country. but we'll find our way to kind of pick our spots whether through partnerships with builders or buying one off the housing environment overall is extremely healthy >> yeah. location, location, location that's like the mantra for real estate we're starting to hear the b word, the bubble word enter the debate where housing is concerned right now. are you at all concerned that you would be potentially buying an elevated or overpriced market >> no. there's a couple things you got to remember. first and foremost, dodd frank and a number of the legislative things that happens after the last housing bubble made acquiring a mortgage more robust in terms of the level of discipline i think that's helping us to make sure the bow rorer is more solid than a decade ago. the second piece is you do not see anything in the numbers that suggests that the supply and

demand factors are going to change dramatically overnight. certainly there are outside influences and things like covid that impact marketplaces think about the fact that we've got about 1 .5 million new deliveries on the supply side. that's a healthy number. it's pretty much in line with the late 90s from a single family perspective you have this wave of millennials coming your way. 65 million people between the ages of 26 and 35 coming into these type of decision making moments. as you start to think about would we see a decrease in the home purchasing or leasing we don't see it. we see a need more more quality, affordable housing across all the spectrums whether it's simple and somebody wanting to purchase, a for-lease product or maybe even ancillary programs that are meant to benefit the consumer and give them quality choice along their journey i think there's actually an appetite for all of that product today in the u.s

>> dallas, good to see you i got a question for you you mentioned covid. as we think about live after the pandemic, do you at all feel like the move to the burbs is if not tapped out, is going to be soon to really slow down as people want to migrate back to the cities and the -- happen in action that's happening in new york and elsewhere >> good to see you it's a great question. going into the pandemic, our business use it as a barometer we were 97 % plus from an occupancy perspective. today we're a little over 98% in the business we certainly have seen a little bit in the survey data suggesting that people are looking for more space that gives us more of the work from home component. have a triangulation as we think through why are people wanting our project or our product, our locations to morgan's point, over maybe something else? it seems like there's been more of a shift in terms of needing more space, because the work

from home component created decision making differences in the way they're approaching housing versus maybe flight from the urban to suburban core we didn't pick up as much of that in the data we picked up tail winds from people saying hey, i need more space. i'm going to work from home for a while, and i thought the thought that my employer is giving me flexibility. i think that benefits single family ownership and single family rental, for sure. >> all right this card carrying suburban soccer mom appreciates the insights dallas, thank you. >> thank you all right. starting next year, bank of america j jpmorgan, and wells reportedly set to close their offices for juneteenth that's now a federal holiday commemorating the end of slavery in the united states president biden signing the bill into law making it the first new national holiday since martin luther king day in 1983. our frank holland has a look at how business leaders in boardrooms are trying to even

the playing field. >> black representation on corporate boards nearly tripled in 2020. 28% new directors for public and private fortune 500 companies were black according to a report 425 vacant or created independent board seats were filled. 114 by black directors 35 to asian directors. 18 going to latino directors the report also finds 75% of the black director appointments were made after the killing of george floyd on may 25th. as many corporations increase their focus on social and economic inequality. women saw their appointments decrease from a record 44% in 2019 to 41% last year. the forecast is for women to make up 50% of new directors by 2023 >> we saw more women leaders join boards. we also over time saw more women leaders in the executive suite

and i'm hopeful that as we have more diverse representation on boards, you will get more diverse representation in the executive suite. >> current and former ceos and cfos declined double digits as companies look beyond the c-suite for diversity. >> thank you, frank. later this hour we'll speak with the ceo of the largest black-owned bank, kevin kohee. look at the dow jones industrial average for the week the banks have gotten hammered look at jpmorganchase down near 8 %. goldman sachs insurance company, ofavelers and walgreens near the top the list. we'll be right back. stay with us ? 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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>> they're moving in the right direction. we've been tracking weekly sales and traffic numbers for the last year via data from black box intelligence for the week ended june 6th, sales up 33% traffic up nearly 30 % for context, both were down over 20% this week in 2020. we took a deeper look at restaurant performance around the country. take a look at this chart. places for both limited service in the biggest u.s. metros are going well along with full service sit-down on a two-year same store basis phoenix are a standout along with indianapolis, orlando and atlanta. in other okays limited services concepts are seeing -- places like seattle, sacramento, chicago, and washington d.c. both new york and boston saw negative same store sales on limited and full store concepts. stocks, it seems investors are betting on a casual concept

rebound. the best performers aren't the pandemic players of last year. it's all about casual names. dine brands cheesecake factory, texas road house and blooming brands all seeing big gains year to date. >> all right thank you. coming up on tech check. an exclusive with lebron james's business partner, maverick carter that's at the top of the hour. stay with us

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take a look at the dow because it is down 500 points. 515 was technically the low, so not quite there, but not all that far away either the market not liking what st. louis fed president james bullard had to say, his hawkish tone maybe unsellsittling the me just a bit juneteenth is now a federal holiday, marking the end of slavery this accordance with the emancipation proclamation. joining us now is ceo of one united bank. it is the nation's largest black owned bank nice to see you, welcome back. >> thank you. >> i want to read something that you said, i don't have the exact

time frame of what you said this, but you said black americans are held back. you can call them, call us, economic slaves in a sense but our lives are dominated and limited by access to economic opportunity i wanted to ask you, are we on the road to fixing that? >> we absolutely are on the road to fixing it and we have this amazing tool called the internet which gives us the opportunities to it things that we never had before so we are on the road, the path is clear it is all about getting americans to adopt entire racism as a core value and in particular our corporations and getting black americans to adopt financial literacy as a core value. and by doing those two things, we are well on our way to eradicate the racial wealth gap. so we're very hopeful. >> and forgive me for stepping on your toes you're hosting a financial lit

reaction conference in fact called one transaction is that tomorrow as i understand it >> it is on juneteenth, the new national holiday, which of course is tomorrow so we're very excited about it it is an opportunity for us to start working toward our financial freedom. so that is why juneteenth is such an important day in the history of black americans it is when we became literally free and we need to use it as a rallying point to become effectively integrated into society. >> there are so many areas of this that will important financial literacy obviously, it is access to opportunity, it is home ownership frank holland one of our reporters just did a story in which he said black representation on corporate boards is at record levels, it

has doubled after the death of george floyd that is critically important as well to get people of clofolor t the board room of our biggest companies, yes >> yes, that is an important part of perfecting our democracy. what is going on, the internet, social media, things like the cellphone are creating unprecedented american for black america and its allies to come together and effect change in society. so that is what is so exciting about today. black americans have known at least since the end of slavery importance of being organized to effect change. we just never had the tools to really do it so now this movement is afoot and by the way the anti-racism movement, it isn't a black thin, it is an american thing. if we take nothing else away from what we saw on television last year, that this is all americans coming together to

perfect our democracy to make the dream of america come true >> kevin, you are laying out the social case, cultural case, the american case, if you will layout the financial case for me the fkt act that you are lookint close the racial wellalth gap ta your bank is conducting. how will you measure success, how long does that take? >> well, here again, it starts with understanding that building wealth is not dissimilar from building a house it is about understanding the things that you need to bring together successfully complete the project. and with the internet allowing us to have the reach to effectively educate and communicate and to be able to set values within the society, if you just think about just

there's two things, if america adopted anti-racism as a core value starting with the corporations, that opens up access to -- tremendous access to opportunity it goes to so many of the things that has locked segment of our society into lower paying jobs as an 2kexample. if you can do that on the one hand and on the other hand to have people that actually understand how to build wealth and then using this marvelous tool we have to not only to communicate with people, for people to communicate with others, it offers the opportunity for fast change. and that is what is so amazing about the time we live in. >> we appreciate your time very much wish you great succession with your event tomorrow. i should note our com league sharoner epperson is participatg in that. kevin, we'll talk to you again

soon >> go 20to one united.com. >> you bet and dow down more than 500 >> yeah, s&p is down 1% right now. just an ugly day in what has been a pretty ugly and volatile week for stocks overall. that will do it for squawk on the street though. tech check starts now. happy friday welcome to tech check. i'm jon fortt. carl has the morning off today facebook's quest mark zuckerberg talks about the holy grail augmented and virtual reality. and then a pre-miere player in n earnings exclusive i