very quickly we'll take a final check on the big markets on the major averages. you'll see dow futures indicated up by 218 points the s&p futures up by 17 the nasdaq up by about 28 points making up for some of that ground lost on friday. mike, i want to thank you for being with us several days this week and last. great to he soyou. andrew, i'll see you back here tomorrow right now it's time for "squawk on the street. good monday morning. i'm "squawk on the street" at the new york stock exchange. dow futures look to bounce from a five-day slide another busy week ahead. fed chair powell in front of the house tomorrow our road map begins with the bulls battling back. stocks look to rebound from the worse week in months bill ackman is back buying a 10%

stake in the world's largest music group, universal we have the details. crypto crashing. the reality of regulation certainly spooks investors jim, you were talking about bitcoin with the "squawk" gang and before we came on the air. >> i think there are a lot of headwinds now to bitcoin tom de mark says it has to hold 30,000 there are two headwinds. i think when the prc goes after something, they tend to have their way. look, it's not a democracy it's a dictatorship. i keep thinking about the fbi and ransomware and what happened with colonial. how many have we not found out people must be paying ransom so, how about if the fbi goes to, say, the irs or goes to the justice department and says, we can't control this then they refer it to the federal reserve. the federal reserve doesn't want

bitcoin. and then they decide, you know what, no moran some wear just like you don't pay for kidnapping next thing you know, instead of thinking bitcoin should go up, if it's outlawed, right, or if it's made tougher to be mining, bitcoin goes down. as if people are saying, i have to redeem. >> it's an interesting thing when less of something is being mined, it goes down as opposed to up. >> gold, you would say, less gold. >> closing down 90% of the gold mips would - >> how else could it go down >> your argument is china may be trying to crush it as a use case, period >> absolutely. look, chooib china -- president xi is different. we all seem to think we are dealing with the old communist china, which is that if you do something bad, they'll come after you hard now they're just asserting their

strength everywhere. if they don't like bitcoin, they go after the town that has hydropower and says, we don't want to do this. remember when you found jack mott. >> pi? >> yes i was out there, looking high and low. >> but you did not find him in a castle >> no. he was home. >> right and -- >> yes, he has been quiet. your point is they did so-called crack down or at least make it clear who is in charge. >> that's the point. and he has been much quieter. >> i think bitcoin is a direct threat -- i think they believe bitcoin is a direct threat to the regime it's a system that's outside of their control. in our country, i think it's outside of our control when it comes to ransomware.

i doubt colonial is the first company to pay ransomware. i think they're the first that almost shut down the east coast, but i think that the justice department, the fbi and the federal reserve could -- and treasury could coalesce to say, okay, guys, if you pay ransomware, we're going to go after you and so -- look, i'm struggling for why when you limit -- when you limit mining, it should obviously go up, unless there's a worldwide redemption of which, if i hope, tethers is deeply involved i know kate rooney did a piece about tether last week and how it could possibly be the weak link because they are part of what's involved in trading and they have not really told us what kind of commercial paper backs then yet they're one of the largest buyers yet, i can't find anyone that does any business with them. i have the tether weak link, i have what the heck is going on,

this thing is going down if it can't be mined and i have the possibility that colonial isn't the only ransomware. i'm saying this is not going up because of structural reasons. and i know tom de mark feels this is great technician says 30,000 intraday. look out maybe the buy point. i'm not going there. sold on almost all of my bitcoin. don't need it. >> we're going to watch not just crypto prices but microstrategy and coin base shares michael was on "mad" last week talking about use case - >> not mine, but he tends -- he's borrowing money to buy bitcoin. >> "fast money." >> without a doubt, he's all in. we spoke to sailor a few weeks back on our show, talked about the rest but here's what he had to the say the other day when asked about his belief in bitcoin. >> well, microstrategy's got the

ability to sweep our software cash flows into bitcoin so we're an operating company that reinvests in bitcoin we also have the ability to raise debt financing so we're able to borrow $1 billion at zero percent interest and buy bitcoin, so your etf won't be able to buy billions of dollars at low interest rates and leverage up. to the extent investors feel like the management teams know how to manage leverage, the core business, we should get a premium against etf. to the extent they don't, we'll get a discount so we have to stay on our toes. >> i think the headline this morning is now they own 105,000 bitcoin. >> that's fascinating. it's really fascinating. he's a very smart man. >> so, what did he say >> when you talk to him -- i can't remember -- it's a unique case do you remember anything quite like this?

they had an actual core business doing something and he's basically made them a proxy for bitcoin and arguing as to why you should buy microstrategy as opposed to etf because of their ability to borrow, lever up, cheaper. >> i don't want to look back and say, why didn't you say anything you sold your bitcoin, almost all of it. you didn't say anything? i'm saying something i'm saying that this -- when i saw what the chinese did, i wanted to hear what eunice yoon had to say because she's been unbelievable and what she's saying is the prc's had enough remember, the people's republic of china is -- it looks like they're, by far, the largest player so, if they've had enough in that government, i don't want -- i would not want to test the government's resolve >> yeah, okay. i'm with you >> well, how many of these guys can you find you found jack mott.

>> i know where saylor is. he's willing to come on any time you want to hear from him. the stock has done extremely well even when you look at the downdraft. >> the bitcoin - >> are people propping up bitcoin? what kind of -- what kind of person gets them to zero interest you want to do that? you want to make that loan federal reserve must be loving that loan. how about gary gensler - >> that bring us to the president meeting with financial regulate arers this has got to come up, don't you think? >> it has to trees and bitcoin, right >> yeah. we're going to talk about the fcc and climate and disclosure because that's going to be a fascinating topic. one that means a lot -- >> you better start doing -- i was talking -- i was talking with someone who sells credits. >> for trees

>> it's a booming business because they're afraid. >> you have a lot of trees - >> people want to buy credits to save trees. >> i got it. >> can - >> what's the matter with that >> can we get to the market? carl and i were getting some well-deserved rest last week you were manning the desk. >> what about the market >> actually, i'm just curious where things stand here. >> this week is a horrible week. >> when we open 20 minutes from now, we look to be a little higher. >> there was so much damage last week while you were gone away. the industrials collapsed. just collapsed i'm talking about major moves in reaction to the fact that you could say, look, there were so many different reasons - >> the market and put up amc oh, the market >> all right, all right. >> that was not my intent. >> oh, my -- interest rates plummet. honeywell was at 230 and went to 214, boom.

caterpillar was at 250, went to 210. >> worst week for banks. >> jpmorgan was just a collapse. i came away and i just said, interest rates drop, you had a one-two punch of the feds of 2023 and bollard saying 2023 i thought some things got oversold the banks were annihilated. >> the house testimony tomorrow gives powell room to comfort the markets in the wake of the meeting, right >> he better do some comforting. he needs to adopt a puppy and show he's sensitive. >> what else beyond adopting a puppy, as you recently did >> he has to come out and say, look, we're going to make a decision based on the facts. 2022, 2023

you listen to dr. gottlieb, and he -- the variants he's saying it's not going away in some states other states it's really good. every note this morning -- the old days when the market was going up, all the notes were positive and everybody is questioning this rally everybody. citi has a negative note about the semis. remember when the semis couldn't mix? >> i saw that. they trimmed their target on intel, which they loved. >> they adore intel more than life itself. they go from 65 to 60. they put the big kibosh on intel and they say amd is at risk. micron, 25% because of pcs what everyone says is, look, the notebooks were in glut now the pc is in glut because the trade to have the office at home, finito. >> i hate to swing it back to our original conversation. i am curious

nvidia, amd, how much -- >> well, nvidia -- >> if you stop all mining or a lot of mining, they still sell a lot into that market even though they say they don't -- >> nvidia has a separate ethereum division, which they will tell you is not that important. everyone wants to make hay with it but there's a lot of other things involving nvidia that are really, really -- >> we all know that. you don't think that it's material in terms of any hit - >> i think it's material from the enthusiasm people -- the enthusiasm for nvidia, a lot seems to be based on this one little division of ethereum. i think it should be based on high-performance computing i think there's a lot of things going on do you think the new dog would be named nvidia ii if it was the end of nvidia? >> we're coming off that 900 target from last week, right >> nvidia ii do you really -- so cute do you actually -- that's a long

name >> also known as ragu. >> or nvid 2. >> the dog was about to be put to death in tennessee. can you imagine? we rescued it. maybe you should rescue more dogs. >> i had my dog made for us. we like to go that way >> genetically designed. >> he's the greatest dog of all time. >> is that a google dog? >> one much those combination -- >> is that what waymo is doing because they aren't making cars. >> you order online. >> self-driving? >> yeah. six months later you get a dog. why businesses are gearing up for a fight with the fcc over climate change futures look to bounce after the w.arorheek of the ye f t do ff has be ready to take on new challenges. that's why we built an office obstacle course ... to prepare our people for anything. you're late well, cdw amplified services experts

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carl you mentioned in the last segment, gary gensler and some meetings today, involving the president. one key part of it from the s.e.c.'s perspective is increased disclosure from u.s. corporations in terms of the risk that climate change poses for their businesses and they will respond and/or disclose interesting article today in the journal talking about. resistance among some corporations, in part, because, well, how are we really going to measure and explain, can you do

so in an adequate form, jim, in some way, in an s.e.c. filing or is it going to lead to, perhaps, more confusion rather than cla clarity, but it is part of the administration's efforts and so much capital that is in the market, are poised to enter to get more disclosure and more understanding so that there are those that are measure progress. >> right you take microsoft remember, they want to go to negative they want to get rid of all the carbon they have very strict standards about what really people are doing. and i think that the fcc ought to do is call in all the companies that have done a great job and say, what do you do? how do you outside audit how do you make sure it's not a farce. i would go to sadiya and say, tell us what to do. >> but they disclose and apple

does, but -- they confirmed the three board members joined the board in that proxy fight. if you're oil and gas company, you're going to get overpenalized, are your investors going to have a full understanding? if you really are interested as an investor, shouldn't you be willing as the three new board members for exxon to just ask more questions >> i think knowing you should issue standard disclosure. i think it should be the way we disclose cash flow, the way you disclose the -- >> years and years -- by the way, cash flow how many go through ebitda >> i think you want to disclose this -- look, i'm not saying it's done overnight. i think they have to study it. but i think from now on, younger people, for instance, the younger people i speak to, i bumped into a bunch of guys last night. they said, thank you, thank you for forcing companies to

disclose what they're doing to helping people not doing well. that's different from what we're talking about in terms of the environment. >> yes, it is. >> i think younger people want to know before they buy a stock. they want to know and they should -- hey, they have every right to know and that's the future of capitalism i want to see what exxon does because exxon basically has the most pro-environmental board not just of an oil company but arguably, right? what are they going to do? they can't get out of the oil business. >> no, they can't get out of the oil business. >> but they'll have to have the strictest rules -- >> it will be a strong board already and transitioning them to move more quickly >> transition to what? less methane >> putting a price on carbon would be something exxon would be in favor of that goes back to some disclosure also because you might have an understanding for certain corporations - >> although it's those esg

pressures that some argue will drive short term oil prices up we got it up four weeks in a row. >> conoco, 82. >> the only way to be sure, i think, i think, first of all, as davis was saying, engine 1 was maybe the most important thing i have seen when it came to boards and every oil company, i think, now is in a race to show, listen, we're going to be less carbon intensive and i think you're right i think like david is so right everybody is vulnerable at exxon. they beat -- they beat exxon they beat darren wood. >> it was definitely a moment. darren is so pro-plant >> carbon dioxide. >> yeah, yeah.

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about 6:30 before we get started with trading at the new york stock exchange, after a tough week, at least if you were long stocks last week you want to get to paypal. >> paypal raised some rates.

very, very small i point it out because this morning they talk about how important it was, barclay's last week i want to contrast the banks with the fintech banks both were weaker but the banks gave up the ghost. i ask you, can you imagine the banks putting through some price increases? they're busy in a race to the bottom they don't want to lose it america's best is doing quite well a lot because they have adopted -- they really pushed for small business i'm just saying, david, as between jpmorgan and paypal, people want paypal. >> they do. >> they really do. and i think it's interesting because jpmorgan is a great bank they're doing really well, but they traded -- jamie dimon -- oh, you weren't here jamie dimon last week saying, you know what, i know it's disappointing but we didn't trade as well. it was like he dropped a bomb on

people's heads it was a bomb. like an h-bomb and people were like, i didn't know how disappointing it was. >> no trading here at paypal. >> right, right. so this is now the pure play i don't want -- people don't want exposure to credit risk they don't want exposure to trading. so they buy paypal. >> on that desk,on donahoe telling me, now we're not going to split the company and coming back and saying, yes, we are. >> and it was brilliant. although ebay has not -- it's been one of the greatest stocks. >> when you look at the performance of the stock since the split. >> i think dorsey said he would come back as bitcoin if he didn't - >> yes, yes. >> he's going to dress -- maybe dress as bitcoin for halloween >> opening bell coming up next

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welcome back keep your eye on amazon. shares close to a six-week high this morning we'll keep our eyes open for prime day, although some worry about some of the cost pressures we talk about all the time maybe the number of deals, quote/unquote, isn't impressive. >> i bought a pair of bin binoculars i've been waiting, waiting i think amazon will not be defeated i think amazon will figure it out. i'm not concerned about the things that people are talking about if only just because they are the greatest logistics team in the world maybe they have to eat profit for a day or two, but, wow, you know, david, amazon is -- did not slow down after the pandemic >> they sped up. we talked about how many people they added what is it, half a million employees. a story in the "new york times" in terms of the difficulties adding that many people and managing a workforce, maybe not

managing that side as well as they manage the logistics size it's incredible. days away from bezos no longer - >> that's right. his travels into space >> oh, my. >> the opening bell at the big board. it's invesco celebrating the biotech and semi etf keep your eye on all of this infrastructure push is going to continue this week the president will have lawmakers over to the white house the next couple of days. goldman has a note out they don't think a broad package is in the making given the resistance to even the bipartisan - >> i think a lot of us are shocked at this. a lot of the cpanies involved with infrastructure got hammered last week as we came to conclude

that it's just something that is unthinkable. even a smaller infrastructure package isn't going to come out. maybe things are even more ugly between the two parties. you've got to be shocked at something everybody in america wants can't get through. >> it does seem not to be a reflection of public will to get nothing. >> right defy what is broadly thought to be the need in this country for spending on infrastructure now, it gets back to what you define as infrastructure, which is part of the debate between the two parties right now. not to mention, of course, the size of said pangage and whether you can pursue this bipartisan plan that a number of senators have gotten behind it's a far smaller number but using some of the already allocated money that came from the covid relief bill or whether the democrats have a chance through reconciliation of passing a much larger number.

>> the leaders this morning, united rental and caterpillar and -- >> those would be the ones >> yes,y he. >> if there's going to be one, that's what you have to buy in the steels watch cleveland cliffs that was very heavy last week. it was a meme stock that went wrong, like many of the meme stocks the meme stocks started breaking while you were away, david. >> they did? >> yes >> well, we put amc up. >> well, that's -- >> and the ornl, the one true -- the g.o.a.t. is still -- gme is still strong. >> they reduced to two they're trying - >> with furlong going to the board this earning month interesting. >> that's interesting. >> i just think achlgt mc, adam aaron, once again, he has an opportunity to raise a little capital. >> he keeps getting that opportunity. >> he must be wishing he could

sell his own stock >> bed bath was down two on friday wendy's -- >> i noticed clover came back after that one or two move wendy's has come back -- >> cliff's doesn't have much short position that was stupid. gaming, the insiders were all set and hit the bid. they fooled those guys. >> if you're lucky enough to have one be adapted by that crowd can, you're going to sell, if you can, unless you're the ceo, in which case you probably feel like you can't. >> it's become a giant joke. everybody -- the insiders -- everybody teeing up so if they are chosen -- >> they're ready to go >> yes. >> it brings us to reports of inside rating at ride. >> i saw that by phil and phil very quickly said, listen, we don't know if it's illegal or not but i do think the fcc

should make a call i hope gary people give him a call that was ill-advised. >> the company would need to sell a lot more stock if it wants to stay on the right side of bankruptcy. >> they have to get a deal phil said that over and over again. they need the capital. i like the way the banks are bouncing back. they were a major source of tremendous selling pressure last week some of the retailers, anything connected with home, even though homes were good. anything connected with remodeling got crushed s so, it's almost like this whole trade with anything having to do with the home got traded lenar had a good quarter there were a million things happening and none of them really good. now i see a lot of people

trying -- maybe home depot had a good weekend -- this used to be home depot's time. >> christmas in the spring, that's true. i know matt boss takes part in a big jpmorgan note on the consumer their primary areas of caution, food at home, business-related travel and share of wallet in areas that benefitted during covid. that includes furnishings. >> just amazing. the end of a trade that was so, so important david, you must be watching whether disney is a pandemic play or a post-pandemic play >> this year it hasn't been much of a play at all it's down 5.5% on over 11% gain. it trades largely at this point off direct to consumerer subs and expectations that's kind of where it is right now. >> it should be the ultimate wide open -- paris, wide open. >> even though the parks are

back to open fully, i guess they'll start cruising at some point, too >> this preliminary injunction. >> the judge and the cdc and you've got people going to the movies in some fashion at least. >> but will they -- will they release -- when are they -- what's the deal. are they going to release them to adam aaron, amc >> there's a great cost to these companies. i'm not talking disney but i am talking about at&t's warner brother -- warner soon to be -- well, not soon but to be spun into nuco. the cost to them, for example, guaranteeing a back end on the wonder woman movie, even though it didn't come anywhere near that number because it had virtually very little showing in the theater. the cost to them of the 20 million bucks they have to pay denzel and then guarantee him on the back end the entire - >> no one's focused on that. >> the way you have to

compensate your stars and everybody else involved with these movies, even though you're not getting the revenue number in the same way, it's a huge potential cost being borne somehow within at&t i would assume but it goes to, well, this is the way we're going to enhance our direct-to-consumer offering. but it does not come without significant cost. >> the stock can't move. >> discovery is down 3% for the year neither one has performed particularly well since that sdeel was announced. l brands up another 3% the separation of victoria secret and bath and body works is going to take place by august this year. they put out presentation, filings, the registration statement for that and you just see how well these companies have done. one is -- the numbers are -- the

adjusted profit income amazing for these two companies at this point given where people thought they would be a year ago obviously, you're talking about now $17.5 billion market cap. >> that's really the bath and body works - >> $600 million in operating income for -- i got it right here adjusted operating income 600 million bucks at the end of last quarter for victoria's secret. $600 million remember, they had a deal to sell it -- to sycamore and they walked away from it. >> this is part of the mall being an exciting place again. as you would see from the properties >> it really is an exciting place. >> i don't go, but simon properties group. >> a little dividend today >> a year ago people were worried about a dividend cut well-run companies. >> speaking of the mall, we're

going to get nike results this week cuts to 160 from 175 jim, it's a two-month low. >> this is another one you have to worry if the people's republic of china has decided it doesn't favor american sneakers. i do think they have been very close to the government. remember, they -- the ministry of sport has a deal with nike, but i also feel that john donahoe is a man of great conscience and if one of these analysts says, how do did you deal with freedom of religious issues, i don't know what he's going to say what does he say to that question i check my conscience at the prc door what's he going to do? that's going to be a conference call to end all conference calls. >> are you sure he's going to get asked the question >> sure. oh, listen, you think they're all afraid because they're afraid to tb cut off >> i don't know. sometimes analysts don't ask those kind of questions journalists do. >> it would be interesting

after they do the barclay's and morgan stanley, prc -- >> on the call >> yes >> do you favor religious freedom? i have to mention a stock. this is drive thering me crazy a company called lidal he held back the mass competition that ran - >> the mass competition, right >> i've had this them on several times. sarah greenstein we have talked about, how could their stock be so undervalued? i'm like, they don't - >> what do they do >> they do interesting fabrics -- engineered fabrics that can breathe and do things they got a bid today from unifix, david d? >> right. >> almost double clear lake capital, people have to remember that you could own a stock that could double simply because no one paid attention to

it that was lidal they were a great ppe company other than owens and minor, up 10%. not a speck la dif stock but undercover because there are so many companies now they can't all be covered. they can't. >> there's a lot of companies. a lot of spacs that get me to -- we mentioned at the top of the show, bill ackman spac -- that's why they asked me to do it so they could play it that's the funniest. we have already gone into great deal about what is an extremely complex transaction involving ackman's spac but they made it official they're buying 10% of universal music. a little over $4 billion -- let's call it $42 billion value for umg. you get those shares distributed

to you what's fascinating about this deal, if you want to call it that, is that the spac remains it doesn't remain quite the same but still has $1.5 billion in cash, potentially another billion four and can try to do another deal perhaps a smaller deal even though bill quoo say otherwise, the candidates for which he was pursuing given the size of the spac originally may not have been large enough to pull off the deal he hoped for and he created this thing the sparc. that's going to be warrants, you get them it gives you the right to buy at 20 bucks, time value, you know, plenty of time that's for the next deal i'm going to leave it there, guys it's complex ackman always sort of -- he like to drift out onto the margins. remember valiant, the initial what happened there. people saying, you can really do that you can be part of a bid and no -- he did

eases doing something that has not been done before and still trading $2.77 above issue. >> original director warrants -- >> they're getting rid of them, right? >> yeah. >> it's very accomplished. he is springing it on you or the rest of the market. >> you have time to do it. but what's interesting is it will focus people yet again on the value of universal music, which will soon become a public company with amsterdam listing. >> with that, nice gain here it's the best gain for the dow since the middle of may. let's get to bob pisani. >> hey, everybody. no trend continues in a straight line we are seeing reversal to trade last week. cyclicals outperforming the bid here today take a look at sectors materials, industrials there's your cyclical play energy stocks as well.

on the upside. tech is lagging. in reverse of what happened last week, if you take a look at some key cyclical names, all of which had a great week last week mosaic, cart pillar, tech, notable downside day for some big semiconductor names. nvidia was at a new high last week micron, amazon niece are fairly modest declines apple is down less than half a percent now. the fed's actions clarify where we are in the overall cycle. just take a look where we are, at least where the market thinks we are at this point peak everything. that's the key and paradigm. what does it mean? what are we? it's mid-cycle it means growth and earnings are still strong but slowing interest rates remain low to moderate tech tends to outperform in

midcycle that's reliable growth that's the way to look at that underperforming are cyclicals like value stocks. that's because we're past the early cycle when cyclicals tend to do a lot better the big argument, can you make an argument at this point that you want to keep buying tech i think that's going to be the real issue here. and has the fed's actions hurt the earning issue. it does not seem to be hurting them 2021 earnings numbers are still rising that's $190.56 for the overall s&p 500. that's been going up for months now. the 2022 number is also rising that's a very aggressive number, folks. remember, the old high was 163 i know people think we're going to do 22 we need to have a strong economy to get that kind of number there's the risk that the earnings numbers slow down a bit. remember, this is peak everything here. the second quarter, we're not going to see earnings grow 64%

very often, folks. it's been going up they said third and fourth quarter they're half of these numbers. you still go up but you get deceleration finally, want to mention here, you heard david talking about the president meeting with regulators the s.e.c. just concluded a week and a half ago a public comment period on expanding all of this corporate climate disclosures. they're looking through public comments they have already launched a climate esg enforcement task force. republicans have said they are overstepping their bounds. he has pushed back insisting it is material. and als that not everything the s.e.c. requires to disclose is material this gets a little wonky but

materiality goes to the core of this debate and i think you'll see the s.e.c. moving a aggressively despite what house rensz are telling them. >> we remember your interview a couple weeks back. it was a great one. still to come, continental resource chair harold hamm will give us his take on inflation, oil prices, new index as well we'll get to for oil but first, it is time for the bond report. let's take a look at how treasuries are faring this morning. yields, as you see 1.47 on the ten-year the ten-year to two-year spread is up from the february lows

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carriers, it has seen a sharp rebound in travel demand as the pandemic recedes there are staffing crunches. cuts amount to 950 flights jim, they mentioned staffing and unprecedented weather, which i thought was interesting. >> yeah. the whole thing, i thought that everybody was ready for the -- the onslaught of new travelers how can they continue to misjuly 4th this look, anybody i know goes to an airport. it's like the most, you know, they just see it your own eyes are telling you that people want to travel they do. they want to do everything, except go back to the officoffice roaring '20s chblt younger people, when are you going back to the office? >> what did you do this weekend? i went out, i was here, i was there. going back to the office no. >> how about the zoom call

oh, yeah the zoom call. kids, you know, "hollywood squares." >> health risk in the office it is. i just can't believe that the banks are allowing this kind of, like, hey, maybe it this is your wednesday. are you on monday, wednesday, friday to they make the rules the 28-year-olds, the 26-year-olds make the rules? >> we don't have time to discuss it, but we will in terms of the decisions corporations are making about whether it be hybrid or to force people to be in person. fascinating to watch hybrid in auto -- oh, iwas talking to someone who was a 24-year-old who was determined what days they would show up to work >> well, i mean, if they don't want that 24-year-old to go somewhere else, they got to -- >> i said the same thing my hedge fund you can have saturday off or sunday off it's up to you. >> remote work on saturday we will get "stop trading" with jim in a moment.

don't go away.

trading." >> shout out to the atlanta hawks for winning, okay? so we keep thinking about what china is doing china last -- this weekend cracked down on iron, ore futures. they think there is too much hoarding china's national development and reform commission and state administration for market regulation, that's their s.e.c. for you, now, one of these meme stocks is cleveland and i happen to like it very much they happen to be a guy began particular iron ore pro daweser. when the chinese crack down, very quickly the people who have been hoarding it are selling it. >> trades commodities. >> yeah, you got to do that. i really believe that the chinese don't want american billionaires who own bitcoin controlling their currency they want to control their currency and i think that we better stay

focused on this because china is increasingly active in every market that we're involved in. where is tdidi that's the antitrust i think there is an antitrust issue. >> what's tonight? >> i have a company that does the sound system in your car and it does stuff. and boxed via spac they're back you're back, david you're back, carl. spacs are back. >> yeah. to me that's a costco knock-off. but whatever every company has a right to become public. my father ran national gift wrap a spac and a half right now. >> sure would have i can see those -- >> pop, pop. >> 2028 projections right now, they are amazing my dog was -- my two dogs, once you have two dogs, spac. >> we'll see you tonight "mad money" 00.m6: p a 1% gain on the dow goent go away. state of the art technology makes it brilliant.

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♪ good monday morning.

i'm carl quintanilla with leslie picker and david faber morgan stanley has the morning off. nice gain after a tough week last week. dow is up 333, best day since me 14, off the worst week of the year. >> 30 minutes into the trading session. the three big mfrs we are watching this morning. starting with microstrategy sliding the business intelligence company owns billions of dollars worth of bitcoin. that company is plummeting along with the cryptocurrency mamid a broader chinese crackdown on mining more on that in a moment and a boost with billionaire ifr vester bill ackman finalize ago deal to buy a 10% stake in universal music group. and ziprecruiter goldman initiating coverage of this ipo with a buy rating, trying to stay in the green, upwards at 4% following its public debut last month. carl

>> the dow and the s&p and the nasdaq edging higher after fierce of inflation spooked investors last week. alley mccarthy of ubs private wealth management. god goodell to see you. >> good morning. >> we are all taking stock of the market's reaction to the presser last week and we know powell is going to testify in front of the house tomorrow. does he need to refine anything from last wednesday's comments >> i think that the market reangted to two things last week one was the commentary which is everybody has said is a little more hawkish than people were hoping for the second was the may inflation number at 5% which was the highest we have seen since 2008. i think all of the comments that are were made were in line with continuing to provide liquidity, we are not expecting inres acrosses in the rates until

2023 you saw a little bit of movement both in the equity markets and in the treasury markets. but i think things are still terribly supportive. you saw very little movement or volatility in the equity markets. we see a ten-year at about 2% by the end of the year. the market really has been expecting and pricing that in, which i think is why the volatility stayed so low but the inflation see-saw that we see and that relationship between equities and growth and multiples and inflation and interest rates, it's what keeps on being the focus when we hav any sort of uncertainty or commentary that doesn't perfectly satiate or fulfill what the market is looking to hear. >> right commodities last week, i mean, we can go through all of them. soybeans, worst week in seven year corn, worst week since may, philly fed delivery times were

coming coming in a little bit maybe bottlenecks are beginning to ease. is the fed welcoming that? >> absolutely. everybody has been pretty clear. again the fed came in and said this right away. they think that the inflation that we've seen is a result of supply constraints that were a result of the pandemic when i talk to my ceos, when we talk to our clients, that is what we see as well. we expect inflation to mediate to just under 3% by the end of the year i mean, there were some extremes when you look at lumber, obviously. oil, we see it like a very, you know, a market that's in a really good place. you have demand increasing as vaccines go in the arm, as cycli cyclicality takes off. you have a patient and disciplined opec that is very conscious of waiting until they see that demand materialize until they increase. so while there are certain

markets that are under stress or sort of in supply booms, we think that largely we're not talking about a huge commodity super cycle, but what we're talking about is very disrupted supply chains that need the time both specifically in certain locations and then globally to get back and running, get their people going, get the labor force going, and get shipping under control. >> right those are all big chores for sure for macro and micro the texas chief economist for the americas joe, great to have you as well i wonder -- >> thank you, carl. >> overall, your macro view in light of everything we had to process last week and maybe some guidance on how that flows into investing decisions in equities? >> yeah, absolutely. i have not been worried about inflation whatsoever i looked at this price adjustment as a post-pandemic

price level adjustment owing to the fact, carl, that demand has been so much faster than supply. that happens, that economic inflection points. we have been in a strong recovery since last summer gdp 14% federalized. we are doing well. the market is saying there is no inflation since powell's press conference last week the forwards, or what you gauge as the peak in the funds rate, that's rallied, carl, 25 basis points the market is saying that the peak rate won't go much above 175. that's bullish for equities, bull ib for credit it means that the feds have the markets back you will continue to have tight credit spreads. >> you talk about how the market indicates it does not necessarily believe in that more aggressive fed does the old idiom don't fight the fed no longer apply in this

current environment? >> i would say definitely don't fight the fed. i mean, what's interesting, leslie, is that the equity market is looking at the dots and worried about removing liquidity and sold off in response to it, which is why you saw the dow down 3% last week. with rates following the growth sensitive nasdaq wasn't down the bond market is saying there is no way the fed will tighten anytime soon they are in the hiking in '22 or '23, may not be until '24 or '25 until the fed raises rates. >> i want to come back to your view on inflation and demand i thought that if you want -- if inflation numbers were to become more permanent, they have to be driven by demand shocks. do you not agree with that, or did i mishear you when you were discussing your views? >> supply has been shut in i if the economy opens, a huge increase in productive capacity. where i get worried, david, is

if we get another large fiscal stimulus bill where we're running to gdp 10% plus with the current account deficit at 4 por 5%, you will have a situation where demand will, by any indication, outstrip available supply a weaker dollar and that would take a transitory inflation problem and make it permanent. that would be my big concern >> so, alley, finally, in light of the confusing sign posts where we just talked about, where does it leave us at this moment on value versus growth? i t >> you still have to look at value. you still have to think about the things that the market, if you are expecting inflation, transitory or not, if you are expecting demand to come onboard, if you are looking at markets where valuation rates are climbing, even outside the u.s., where you have, you know, 10 to 15% mobility below what you saw two years ago, that means demand and money and

consumer power and spending is coming into the world. so that's getting back to driving. that's energy. that's financials. that's consumer discretionary. that's this build, build, build, build, build that we're seeing so i think you have to stay cyclical heavy, value heavy and stay small you are looking at relative valuations between small and mid cap and large company that are convinces. places are less vaid so malaysia, india, china, there is definitely the value there and the growth is not going anywhere and we talked about this sort of relative switches happening day by day, week by week here. you have to be specific when you are picking companies there, whether it's from a sector perspective. you are definitely value and cyclicality on right now. >> great discussion to start the week appreciate it very much. joe, ali, talk to you soon. >> thank you

bye-bye. well, crypto has been plunging this morning. this in the wake of a deepening crackdown in china where a lot of bitcoin is mined. kate rooney has a lot more for us kate >> hey, david, good morning. bitcoin hitting a two-week low this morning after a report that china has cracked down even further on cryptocurrencies. bitcoin dropping to about 31,000 this morning it's back up near 32,000 here, down about 7% right now. ethereum falling, it was down 8% this morning as well the first part of this year, the people's bank of china today saying it urged alipay and major banks trestrict crypto trades and ordering a halt on bitcoin mines in another region in china over the weekend and it follows similar moves from china in inner mongolia and other reigns and more than 90% of china's mining fas kpasty is shut down

there have been calls from beijing recently to clamp down on mining. this isn't necessarily new we have seen this pattern before and they have cited worries over the massive amounts of energy that it takes to mine bitcoin. one thing to point out here that analysts are telling me this this morning shesh juan is known for hydropower is this more about competition and bitcoin as a threat to the digital yuan a lot of miners have been forced to move. they are looking for places with cheap energy and political stability. but folks i'm talking to say i can take anywhere between 6 and 9 months to get one of these facilities up and running. and the hash rate guys, the computing power takes to measure -- the computing power and measurement for bitcoin mining has stayed relatively stable despite some crackdowns according to data from incoin shares they say it's around those january levels despite bitcoin miners being shut down

all this a little bit more about sentiment and fear around the bitcoin markets and those crackdowns micro microstrategy moving lower today. the software company says it bought another roughly $500 million worth of bitcoin. they now hold more than 105,000 bitcoins leslie, back to you. >> kate, taking hit by 7% just based on this news alone thank you so much for that comprehensive report appreciate it. the supreme court just out with a decision involving goldman sachs. they threw out a ruling that allowed a class-action suit against goldman for alleged conflicts of interest. it dates back to the financial crisis era and involves statements by goldman in the mark of abacus. >> this skas was seen as having major implications for shareholders seeking to bring securities fraud lawsuits. we have reached out to both sides for comment. >> abacus, that brings us back.

>> i just got some flashbacks. >> wow we will take a break here. the roadmap for the rest of the hour primetime for amazon, the annual two-day avept. the last one with bezos as ceo. and talking inflation, oil prices and more. and lordstown reassuring the public and investors following the dramatic executive shake-up. a closer look later this hour. a big show for youhe o aadn "squawk on the street. stay with us

welcome back to "squawk on the street." amazon's prime day is underway the last with bezos at the helm. we have more on what to expect over the next two days disappeared ra >> leslie, expect another blockbuster shopping event for amazon expecting sales to top last year's exceed $11 billion. the e-commerce pie is bigger the last year. amazon has been a big winner however, there is also more competition and blowback you will find plenty of discounted amazon devices, echo, fire tablets, ring cameras, et cetera what you won't find are any deals on the latest roth think's, allbirds, powered by shopify, that would prefer not to hand over their sales and data to the giant in the space increasingly going into private label products

we will hear a lot, guys, about amazon's support of small businesses from amazon over the prime holiday. there are some though that are not only not participating, but even pushing an anti-amazon angle like this brooklyn retailer selling shop brooklyn, not bezos t-shirts for 20 bucks a pop. there is also traditional retailers, walmart, target, big tech, too, google, facebook, increasingly moving on to amazon's e mers turf, but don't feel too bad for bezos he is going to clean up. as you know, that's a double-edged sword because a successful shopping event likely to raise scrutiny and criticism even more long lawmakers looking to rein in amazon's dominance. carl, david, leslie, good thing jassy takes over in two weeks. that will be his problem to encounter. >> we are going to find out how much of a problem it remains in bezos' hands as he leaves the ceo spot see you in a bit. still to come, oil prices

and inflation with harold hamm, crude oil up almost 50% for the year dow's up 460, awfully close to the best day since march don't go away. when traders tell us how to make thinkorswim even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim web. because platforms this innovative, aren't just made for traders - they're made by them. thinkorswim trading. from td ameritrade. there's interest you accrue, and interests you pursue. plans for the long term, and plans for a long weekend. assets you allocate, and ones you hold tight. at thrivent, we believe money is a tool, not a goal.

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time for our e"etf spotlight. u.s. global jets, up double digits with airlines seeing a sharp rebound in travel demand a name to watch is american, trimming about 1% of flights for the first half of july, making that move due to a staffing crunch and weather the cuts will amount to about 950 flights. on to oil. wti crude coming off the fourth positive week in a re for the first time since december of 2020 bank of america says tight demand and supply balances could push it past $100 a barrel next creek. and magellan and enterprise teaching upg for a crude oil future contract.

continental resources chairman harold hamm, good to have you back let's start with this intercontinental exchange for the new use in crude oil futures contract i know you were heavily involved with the creation of it. why? why the need >> well, we all saw the need the deflection point game in april u2020, you know, as curbig went negative, $37.63. so that was an inflection point. everyone realized that the market that we had land locked in curbing, oklahoma, wasn't sufficient for the future. most of the oil that's produced in the u.s. goes directly to the gulf coast it never sees curbing, oklahoma. so it was imperative that a new market be focused upon and created and i was glad to lead a best practices task force that helped in making this connection

happen so this is a big day, historic day for the industry >> right so now you got something that's most interconnected market in the country and so we're never going to see that again, is what you are saying we are never going to see a negative 38 print or anything like this that as a result >> i never say never, but we shouldn't. that was inspired somewhat with the storage capacity that was overrun in curbing as long as you pull up another ship, you are not going to have that in the gulf coast you know, first of all, you've got a lot of storage capacity there between these companies that can handle that the next thing, you have a lot of ships that can load oil we are seeing that become more and more important ever since we left the crude oil export ban in 2015 exports have played a significant role and will in the

future >> harold, just to put a fine point on it, what does the futures contract do differently than those currently in existence? >> you need a futures contract that would work and do a good job. ice, as we call it, you know, reflects about 85% of the futures trades either over the counter or brentz in the world and it's a very highly acclaimed quality market and so this is going to do a job. a lot of people hedge futures and certainly for their crude oil exchanges. so this will do the job. and we're happy, you know, that this market has been created, being in the gulf coast region

>> let's get back to the oil itself you heard maybe in the introduction this b of a call, as much as 100 what are you seeing in the marketplace and would you argue perhaps that that is optimistic or is that realistic >> well, certainly we've seen all of the commodities, oil and natural gas is two of those, that have gone up the last several months you can call it inflation or whatever, but the commodities are up and we're seeing that happen but the fundamentals, supply and demand, that's what rules our business so you start limiting supply and demand is still there, and coming back as covid-19 recedes, you know, we get the international travel going again, a couple billion barrels more a tay that can be used. as that happens, we are seeing the overhang in inventory recede

as well, go away and so it's that international travel coming back, you can see demand tick up some more i'm not putting a number on it, but certainly we've been in a positive market as that graph shows ever since the election. we're on an up trend. >> yeah. finally, harold, haven't had a chance to speak to you since exxonmobil they made it official today. lost three seats to a tiny hedge fund, essentially, running a proxy fight, specifically on their not moving fast enough to transition to a carbon-neutral world, so to to speak. it was one of the long-time veterans of this industry, i'm curious, what did you think of that when you heard it >> well, it's something that is interesting. first of all, one of those seats went to a long-time -- you know,

that actually had run a refining company. so that was interesting, who they put on there once they got those seats. certainly our company had been involved in the group, all the 50 years we have been in business so we're very, very much involved, particularly in the social aspect, bringing energy to everybody in the world that needs it there is a billion people that still need electricity another billion that's underserved. so we see that demand in the world is still there and, yeah, it was somewhat shocking when we saw the refiners that had -- the people moving in on them like that. >> yeah. yeah it certain wly is. appreciate your time thank you. >> thank you good to be with you.

as we head to break, we are watching shares of smith & wesson again up today. another 8% to start the week actually, almost 10% now the stock rallying after an earnings beat last week. now up over 20% in the past five sessions we will be back t mutinwoines

♪ welcome back here is your cnbc news update at this hour. organizers of the tokyo olympics announced today that smek taters will be limited to 50% capacity at each game's venue that's a maximum of 10,000 fans. this even as medical experts warn that holding the gamter games without any fans is the least risky option covid cases rise in japan, the organizers may choose to ban fans all together.

the navy fired explosives at an aircraft carrier friday, testing whether the carrier can take a hit during a battle at sea. it was the equivalent of a 3.9 magnitude earthquake that struck the "uss gerald r. ford" 100 miles off the coast of florida the navy says that the test was a success. and jon rahm became the first span-year-old yard to win the iu.s. open on sunday. he tested positive for covid-19 two weeks ago and was forced to withdraw with a six-stroke lead. carl, back to you. >> thank you very much. the fed and its impact on the markets. stocks are urger tu turning a bt the dow up almost 500 points the fed's unexpected forecast of interest rate hikes in 2023. joining us former fed reserve board governor fred michigan a professor at the columbia

university graduate school of business appreciate your time. >> no problem. >> i'm glad we got you today kaplan and bullard are on the tape and we will hear from powell tomorrow. but the general framework is that the overarching question is how long we are going to see this overshoot on inflation and how long the fed going to let that last. >> absolutely. >> where do you come down on that >> my view is that the fed is getting hit by reality i have been saying for whquite while that inflation was potentially much more severe a problem than the fed has been admitting to the problem here is i think that they're right, that tha lot of e recent movement in inflation is from supply shock, the fact that people can't get certain goods and services and that's led to a big increase in prices but on the other hand what really leads to permanent

inflation is when you have a lot of aggregate demand. a lot of spending going on in fact, the 1.9 trillion bill was too large. wrong timing and that combined with the you had a huge amount of pentup spending means that people were going to spend more. so i experienced this. i went to book a couple of days for a getaway and the prices were twice as much as last year. why? because everybody like me wants to finally katake a trip. what's happened is that that higher demand and connection tleed more permanent inflation that's the problem i think the fed is facing with potential increased spending from the biden administration's push on infrastructure and the fed i think has been underestimating the potential for inflation. i think it was appropriate to t say that they wanted inflation a little bit higher than 2% for a period of time

however, i think that things are turning out to be stronger than they expected on the spending front and that's creating problems for them. they really could be getting behind the curve they have to express what they will do and they may not be able to wait as long as they think they will wait and be able to raise interest rates. >> right in light of that, people looked at spreads last week, looked at what overall yields did last week and some argued that it was a sign that the fed's credibility long term is intact. do you not think that's the case are markets too technical to make that read now >> it's hard to know i hope that's the case i think that this is a key in terms of the fed's communication that the sooner they can actually express the fact that they will do what it takes to keep inflation from spinning out of control, that, yes, they can -- that it's actually a good thing to have inflation a little bit higher because they have been undershooting the 2% target for a while.

but not to basically say don't worry, everything is going to be fine automatically the real issue is, if things turn out to be more permanent than they actually have been talking about, they are going to have to move and they are going to have to move quickly and tell the markets now that that's what they are going to do that actually means they will be less likely to get behind the curve and raise interest rates by less and that's actually something that would be positive for the markets. >> fred, i am going so ask you the same question that bare ends posed to readers can the fed ever really raise interest rates with the massive level of private sector and public sector debt out there right now? are they between a rock and a hard place >> well, the issue here is that the longer they wait, if they need to raise rates because inflation is more permanent than they expected, if they wait too long they have to raise rates by more to get credibility. that's the real danger the answer is, yes, there is plenty of room for the fed to

raise rates, that this is what they need to do if inflation starts to be permanently higher at a level that they are not happy about. but on the other hand, they really have to make sure that they communicate that they are going to do their job properly that's what actually keeps rates from rising by too much. it's when you actually get behind the curve that you start getting in trouble and there is more potential for that now. . >> yeah. all right. so let me get you more specific. more potential, do you think it's likely that, in fact, what you were outlining, that they have to raise more than they thought or perhaps more than would have been necessary and that's disruptive to markets >> it may be a little disruptive so i think that the fed will probably have to move quicker than indicating in the dot plots and, again, we don't know that they -- they may be right, that this increase in inflation is temporary. they need to communicate to the markets that, if that's not the

case, then they will move, and they'll move quickly so is there an issue i think that the market are going to be more worried about this that is the nature of what's been happening i actually think the fed has to move a little bit sooner than they are contemplating if in fact things are stronger than they expect, if they wait too long, we will really have problems. >> fred, that's going to be a story for another time hope to talk to you many times between noup and then. thanks so much we are getting more breaking news out of the supreme court. for that lets get over to diana. >> yeah, this case is about student athletes and it opens the door for student athletes to get more compensation, not direct payments necessarily, but in a unanimous decision the ncaa lost its case asking to limit some educational benefits for student athletes new, again, not direct payments, but things like laptops and

science equipment or post-graduate paid internships the outcome could determine how much authority the ncaa will have in the future to restrict such payments and now it seems to open the door a bit interestingly, the court ruled that by limiting these educational benefits, that the ncaa would actually be violating antitrust laws because it would make it harder for schools to compete for athletes not about direct payments, but it opens the door in the future for that saying that students can continue to receive educational benefits from the schools br where they play. back to you. >> thank you important there. the antitrust component important for the ncaa we're talking in terms of that debate about whether in fact some athletes should be compensated. it's a relatively small group of division i athletes, particularly football and basketball this is very important. >> and 9-0 that gets your attention gorsuch writes that the ncaa needs to impose immunity that we

should overlook because it happens to fall at the intersection of sports and higher education, we cannot agree. >> he calls it admitted horizontal price fixing in a market where the defendants exercise monopoly control. that's again justice neil gorsuch. so pretty phenomenal outcome here in this case. again, the fact that it's antitrust, you have unanimous decision here, you know, don't see that every day. >> yeah. scre creeping along, that idea of potentially compensation the criticism from the ncaa has been so many of these athletes don't get an education, are there to work full time and most of them don't end up having professional careers as well. all right. as we head to break, let's get another check on the crypto names getting crushed today. several of them lever to what, you know, we have seen with regard to chinese crackdown on miners over there. bitcoin down almost 7% ether down 9.5%. ghbat"ilbe the stree wl rit ck don't go away.

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let's workflow it. then you can stop having those nightmares. no, i would miss them too much. whatever you business is facing... let's workflow it. servicenow. lordstown motors holding an open house to reassure the public and investors about future prospects phil lebeau has that story for us. >> more questions than answers when it comes to lordstown motors despite the fact that the company is holding what it calls lordstown week, this is what the company, they laid this out several months ago, they were going to hold this week of events, basically to show the public and, by extension, investors that they have a plan for bringing their first vehicle to market. ever since the ceo was basically let go last week at the beginning of last week, along with the doctor cfo, following

kwegss about statements made regarding orders of vehicles, it leaves the company with key challenges they need to overcome they need to hire a ceo. that has not happened. they also need to figure out the production target exactly for this vehicle this is the lordstown endurance pickup truck they have said all along and said last week we plan to go to production in late september the order interest is unclear. last week after the turnover in the top ranks of management they said, yes, we have firm orders two days later they issued this statement. to date we have engaged in limited marketing activities and we have no binding purchase orders or commitments from customers. as you look at shares of lordstown since the ipo last year, also getting attention is the fact that we knew that some of the executives osold shares. th we didn't know the extent of it. five executives back in february

unloading a large portion of their holdings, raising questions about, if look, if you have executives unloading holdings, there is no suggestion that it was illegal, but it raises the question, how much confidence should investors have that these guys were selling large positions back in february before their first earnings report, before any of the ques questions started coming up about the future at lordstown. all of these are what will be facing management when they talk with some of the reporters at the plant today. >> yeah, phil, what do you make about the timing for this lordstown day, this open house that they are having it seems really, really difficult to instill confidence in the market right now when you have no permanent management to speak of, you have no binding orders, and then these stocks sales coming to light. >> i think people are surprised they are still holding this in height of the fact there are so many questions there as i understand it, this will be a very short tour where they

will take reporters around and say here is one area of the plant, here is another area of the plant. the executive chairman will answer some questions. when we talked to the company we said we would love to talk with her. let's get a sense where this company was at at first they said it's possible then they said, no, doesn't work withler schedule get to the point, leslie you have so many things swirling around about lordstown motors and yet you are doing this tour, which people will look at and say, great, but what's the future where are you going to get the capital to come to market over -- not just get to market, but the next year and a half, two years. >> yeah. well, phil, speaking of the future and capital, you have ford and gm last week. vastly increasing their spending on this very area. i just wonder, not just lordstown, but so many other names we have talked about, you have to wonder if they are just going to be able to hang in enough to compete. >> with regard to lordstown,

david, the question becomes this if you are a company and lordstown is marketing the endurance pickup truck for fleet operators. whether it's a utility or a small contractor who is looking for a work truck, essentially, are they going to have confidence in lordstown to not only build the truck, but be there to service it down the road or will they say i can turn to the f-150 lightning, the silverado. there are other options for some of these potential customers and right to what you were saying, david and carl, it's all about capital. this is such a capital-intensive business, and particularly right now when it comes to bringing a new electric vehicle to market. >> phil, fascinating story thanks phil lebeau. coming up this morning on tech check, why dan niles boosting his position in alphabet it begins at 11:00 a.m. eastern time in about 13 minutes

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welcome back to "squawk on the street." stocks are moving higher with every sector trading in positive territory today. we're seeing rebounds of some of last week's biggest laggards, especially ones tied to commodities which came under pressure last week one of the area really starting to play out well is the material sector the notable gains, mining and metal stocks and leaders of the pack, cf industries, mosaic as well, paper and packaging chemicals eastman, west rock in the mix. keep an eye on the materials back to you guys, downtown, at the new york stock exchange. thank you very much. as you know, june is pride month and all month long we're spotlighting cnbc contributors, business leader and our own cnbc anchors and producers. this is human rights campaign president alfonso david. >> i have a message for the young lgbtq person living in a state that recently passed

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all right. can you say rally mode we're in it. right there you see the s&p is up 1.2%, the dow ahead of that the nasdaq is significantly lagging after what had been some recent outperformance, closing that gap for the year. at least it had in recent weeks in terms of performance overall versus the s&p but we do have the s&p up a little over 12% this year and the nasdaq up a little less than 10%, leslie. >> you're seeing the dow up -- having its best day in three months partially because people are spending more and spending more on things like clothing in may with in person shopping on the rise, signaling a shift in consumer retail habits postpandemic global fashion designer and author of the new book "fe "fearless", rebecca minkoff

joins us now thank you for being here congratulations on your book i want to get a sense of where your business is now i read the pandemic induced shutdowns caused about a 70% decline beginning in match of 2020 last year have you seen that snap back in any way? are things prepandemic levels at this point >> yeah, so, we ended the year last year actually up 10% through our direct to consumer channels, which we were really proud of considering we thought to ourself who needs a handbag now during the pandemic? but she was there and voted yes. and we pushed it to that -- we're going end to the year at about 30% up over last year. so we're beginning to see healthy reorders with our department stores, and a great interest and desire to shop full price on our site, which is great. >> how do you think the pandemic has shifted the way that people shop we made much of what is going on -- what has happened with regard to the transition, more toward e-commerce, you've been a huge beneficiary of that

but i saw that you're also allowing consumers to rent your products for about 25% of the retail price are there any other ways you're seeing a shift as people start to emerge and start to buy again? >> well, we're definitely starting to see people who want to go out, touch and feel, they want to have the community that comes with shopping as you just reported and this borrow button is really exciting because so many people want to try something, they're not sure, and when it comes to the fact that they cannot get a subscription to every service out there, but be able to borrow something and/or keep it, i think it really sets the tone for the future as people who are sustainably minded, or who just want to try more things for less time without any, you know, contracts to sign, makes it a lot easier we're also seeing a lot of women buying heels i think women are excited to get out and buying dresses, so we're seeing that she's ready to start going out and getting back out

into being with her people. >> can you give us a sense of what you're experiencing on the supply chain front retail reporter courtney reagan has done a lot of work on the port congestion going on, how that impacted inventory, how that impacted shipping and so forth. are you experiencing any bottlenecks with regard to your supply chain right now >> you know, we have been extraordinarily lucky and i think with a lot of foresight and planning we have not experienced much congestion. over the holidays we were a little worried, but we have an incredible logistics team and they managed to get it out on time >> all right, rebecca, thank you so much for joining us today congratulations on that new book really appreciate it. >> thank you so much all right, we want to bring you back to the markets as we wrap up on "squawk on the street" with the s&p up 1.25%. the nasdaq is the laggard, of course, that continued question value versus growth, last week

value selling off to a certain extent, the industrials in particular selling off we are seeing a rebound and that even reflected in the dow industrials of index i don't typically refer to because it is statistically insignificant. that said, we'll see whether this is sustainable. >> yeah, it is interesting because we had joe on earlier in the hour and talking about the market reaction to the fed, whether people are essentially ignoring the prospects for rate hike, you can kind of see a little bit of that in the markets today, people just believe that because of this enormous download that it is existing that there is almost a moral hazard thing going on where the fed is in a very difficult position to substantially raise rates despite what's going on with inflation. you are also seeing more comments about the prospect of what we're seeing with regard to price pressures being transitory, a great piece in "the new york times" about lumber and that's a microcosm of this supply, ultimately catching up with demand, you see that

with regard to other commodities as well. so, you know it does seem like people are a bit more optimistic on this monday morning. >> yeah. and that's reflected to a certain extent, we'll keep a close eye on the ten-year. interesting listening to professor mishkin who is concerned that the fed is behind the curve. that's it for "squawk on the street." over to "techcheck," it starts now. >> they got the golden key >> grab anything >> nice! happy monday welcome to "techcheck. i'm jon fortt with carl

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