now the market awaits testimony from jay powell. the crypto slide continuing. bitcoin down 20% in the last week as china continues the crack i crackdown on digital krcurrency ethereum is down as well. and americans are quitting jobs at record rate. what one company is doing to address worker burnout it is tuesday, june 22nd, 2021 "squawk box" begins right now. good morning welcome to "squawk box." i'm becky quick along with joe kernen and andrew ross sorkin. welcome back, joe.

>> thank you i missed the 10-year at 1.6. >> you missed it at 1.4. >> i know. i saw what was going on. vacations help employee burnout. doesn't kcure >> it does until you come back. >> is it just me >> this is me. this is me >> good. you know what? i want to ease into this >> i'll do the heavy lifting you do commentary. let's talk about the markets after stocks rebounded from the friday selloff the market up 600 points yesterday. dow up 1.8%. it gained back everything it lost on friday and then some s&p was up too it rose 1.4% nasdaq up 0.8% all 11 sectors of the s&p fined

higher let's check things out dow futures are down 5 points. if you are watching this based on yesterday's close, we need to pick up 31 points to hit another record there yesterday, we talked about japan. the selloff there. overnight, stocks rebounded there as well. nikkei was up 3% that came after the decline of more than 3% i think 3.3% decline with the nikkei on the day before i jumped right through treasury. i'm not doing the heavy lifting well joe, you said this, we saw treasuries push up then it came back down to 1.41%. 10-year at 1.478%. the 2-year got up high 0.248% you saw the flattening of the

yield curve. also i want to look at the "squawk stack" this morning. transports for the month to date, they down dow transports, if you are watching this for the first half, they are on pace for the best first half since 1997 the regional banks had the left day since january. this goes back to 2006 when they created the index. wti is down. gold on pace for the worst first half bitcoin was down another 8%. this morning, indicated down 3%. trading hit $31,530 right now. >> hold the line at 30,000 >> yes >> that's the question >> look at the chart

if it goes below that. who knows? below that, it looks $20,000, $15,000 and then 8,000 gold, i don't understand i will say coming in and i saw what tepper said i am feeling half full i ate at waffle house too many times. on vacation, you do eat a lot. i'm feeling the half full. when the 10-year acts like that, we're going into a rebound that's unprecedented from the coronavirus. we're going to have gdp numbers that we never see in the country. we have the rip roaring rebound and no governor on the growth from rates moving up at this point. if inflation and lumber is down 50%, i don't know whether i'm

starting to believe it is transitory it is hard to look at what's right in front of you and not say this is bullish for growth and stocks you have to wonder if the fed -- i saw bullard say next year instead of 2023. >> that is what he would like to see. we will hear from jay powell today. it sounded like he was just speaking rationally. >> what do you expect us to do >> exactly it didn't sound like anything you couldn't pick up when you watched the dots on wednesday with the fed's meeting it didn't seem like he was saying anything revolutionary. the market did take it in a weird way. >> when somebody like jim bullard speaks, there is a view. i don't know if it is true or not, but it is orchestrated. it's a cartel that they talk to

each other powell says i'll do my press conference this day and jim, you are doing tv later in the week let's talk before you do that and they are all trying to send messages was he trying to send a message or just talking the way he feels honestly >> it sounded like he was speaking honestly. who knows? we get the chance to hear from powell today when he goes before congress to talk about the issues we will hear how he wants to lay this out do they think it is too much of a reaction on friday or do they double down and say this is where we're headed >> if you look in front of your face and the financial assets other than valuation and the big move we've seen, that is the one thing that has us all wondering how long it can continue if you look at the underlining dynamics of a strong economy and corporate earnings and with inflation, i'm back to thinking

amazon and -- you know this internet is a new fangled thing we got here. we said that would be defl deflationary >> rick reader was on cnbc yesterday. he talks how he thinks it is changed. we had a commodities expert on from goldman sachs yesterday he said this time may be different. not as transitory as you think because if you are the mining companies or the american oil companies or all of these places have gotten used to the margins. they will not reinvest on additional mines or drilling that's going to take time. you will see areas where that inflation does continue to carry on it takes longer for the big aeg companies. it takes longer. >> 1.4 really got me. >> me, too some of that was good and attributed to safe haven play. you saw stokes icks in tokyo do%

ended up down 3.3% you are looking for safer havens >> it did not look like fed origin orchestrated of buying of qe we don't have price discovery because the fed is in so many aspects. figure gold out. if inflation is running rampant and you have all this. the guy in iran. all geopolitical things to worry about. >> if people who used to buy gold are now looking to buy bitcoin. the worst performance since 2013 >> are there global growth worries already? >> i don't think global growth worries if you are watching oil prices >> that's the only reason i can figure out why the 10-year is not -- these are all of the things -- you have time to think when you are sitting

all i was saying is i want this to end no one than joy enjoys that >> you enjoy that you've done it >> the actual process. >> for the viewers who don't follow you on twitter, explain it was cool what happened. >> it was cool we catch shark all the time and on an an estuary by your friend place. we caught a little black shark then you wonder if something bigger is happening. you saw it jump. it was big >> i watched and a lot of people

did. we he should air it. >> it went under the boat. around the boat. near the engine. you finally get it to where the guy is able to touch the lead and in the catch and release you will not get a tarpon inside the boat it was -- oh, that's it. >> here we have it >> he is not ready to come in. i can tell you that. it is cool you think that rod would snap or line would break you just got to wear him out he wears you out i think it was a she they called it a silver king that's one of the first ones the guys had seen down that were on that boat. it was early for the season. that's a bucket list thing i thought my arm -- it felt like it would never work again.

my right arm i'm not left handed. people say why didn't you get the reel on it that's how it works. coming up, enough about me let's talk more about me no coming up, what you need to kno ahead of opening bell. futures up indicated 22. we are watching the futures of bitcoin. it was still $8,000 not that long ago as i recall $31,000. still amazing. it could be at an important level. mike has a company based on digital currency a whole company based on digital currency is he worried? he'll join us in the 8:00 hour

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fed chair jay powell will testify on capitol hill about the coronavirus remarks. he said the economy has shown sustained improvement and inflationary pressure should ease as the economy recovers he said job gains should pick up as vaccinations rise and easing of pandemic-related factors weighing them down let's get to the markets and joining us now is gabrielle santos and gunjan with the wall

street journal ladies, your comments in the pre-interview informed my remarks earlier. gabriella, what is not to like low interest rates and very strong rebound potentially coming isn't this a time that financial assets should do well based on underlying fundamentals? >> absolutely. you have above trend growth. you have extremely patient fed willing to tolerate a modest overshoot in inflation none of that changed last week at the fed meeting equities and credit and cyclical sectors and regions. ultimately what happened with

bullard's words wereconfusing. the extreme overshoot in inflation and technicals had a role to play in the curve. overall, that constructive back drop has not changed it was nice to see the market react in a rational way yesterday. >> gunjan, it may be different this time. i talked about deflationary benefits of technology that maybe we're overlooking that are long-term and allow us to have these low interest rates with strong growth. it is bad to say it is different this time, i think, isn't it >> you know, for years, almost, people who called for the value have come back were like the boy

who cried wolf we have the performance for value. value stocks were out performing in decades now people are wondering how long it will last. it is too soon to say the value trading is done because of what we saw last week look at yesterday. the russell and energy stocks and financials had a rebound we will keep seeing the back and forth. >> the nasdaq is still on everyone's mind as the place to go if you want outsized returns. does that make the value play less attractive, gunjan? >> there is a diffivergance look at tesla. it is still down a ton cannabis stocks. car companies. i think it makes it tough to

gen generalize here. >> gabriela, does it cause you concern with the speculative asset classes and some air may be coming out of them? some saying a lot of the nfts are not long-term or not continue to appreciate long term you don't throw crypto into that meme stocks. there are pockets of pure speculation. does that make you worry about the overall market or not? >> so, it makes us concerned about specific areas of the market when you have price movements that are separate from actual fundamentals. it is always healthy to see when you have profit taking in those areas. you have named a view. whether it is meme stocks or extremely small cap stocks

for a while, you saw the largest faang names. you can throw cryptocurrency in that and spac. it is always healthy. what is interesting to see compared to january is that is not leading over to the broader market it is something that causes volatility only very specific areas of the market. for us, we are still fundamental investors and that's where we stick. >> gunjan, you have one of the biggest market risks on your list inflation. did the action in the yield curve, in the 10-year, make it less concerned with a near-term risk it may be transitory >> that's seemed to be what the market thought i thought the move in the yield

curve and 10-year has been puzzling to everyone some traders, i was speaking to were saying this is positioning driven everyone is hanging on to every word from powell and fed speakers for any signs of what they see inflation being in the near-term and long-term. that is on everyone's mind the s&p 500 is still striking distance from the record high, but we have seen the huge moves under the surface as well as across asset classes lumber or the yield curve or cryptocurrency or gold that highlights the uncertainty out there which stems the concerns about the inflation. >> okay. we'll end it there thank you. gunjan and gabriela. >> good to see you, joe. >> did you know i was out?

>> i did i didn't see you for the past couple weeks >> that's a good answer. thank you. >> they like me. they really like me. >> you're dating yourself. >> she's watching, she's watching >> do you remember that? they like me they really like me. >> i only know that because i know you, joe. >> you are dating yourself >> yeah. >> "places of the heart. >> don't remember. coming up, americans quitting their jobs at record rates. we will show you what one company is doing to combat employee burnout. the ceo of the largest spac of the year. lucid motors peter rawlinson will join us >> announcer: this cnbc program is sponsored by cdw. people who get it. here and here.

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welcome back to "squawk box" and executive edge dating app bumble giving the company a week off the offices are closed this week to give the 700 employees a much-needed break to recover from covid burnout employees will be back at work on june 28th joe, you got a week off. i don't know what we're talking about here i was thinking about this. are they getting two weeks off normally or an extra week off? is this now an annual thing? what do you think? what would you do? >> i was looking at arthur brooks we will have him on later.

he always talked about the dignity of work and earnest success. can you do that remotely there are some good things about being -- i mean, i don't always agree, but by being around people camaraderie and working together and collegiality 28% of people are depressed from saying at home now i don't know i don't think how i feel about all these work-related issues about it as i told you, a week off does not end burnout. at 3:45 this morning, i felt burned out >> you still feel burned out you can go on as many vacations as you want. you feel it the second you are back >> do you think hustlers need to be in the office >> in the news business, i remember many years ago two things one, walking to the new york

times and somebody telling me -- so many people at their desks at the office and an editor saying no news in the building. meaning go out real hustlers should not be in the building i remember visiting forbes magazine and ad sales people they said similar thing. there's no money in the building get out of the business. if you are in the business, hustle the real hustle is never in the office >> that's different than being out in the field they don't mean being at home. >> right yes. >> in your underwear on a zoom call. >> a lot of people that will be trapped. no, no, in the white collar service client oriented business, a lot of people who will work from home and then travel they will travel they will hustle for work and travel around the country. instead of going to the office,

you know, the one or two days they used to, maybe they work from home. then what does that do to the culture? >> we need to think office space and air travel and las vegas conventions. it is totally -- we don't know we don't know what it looks like. >> not yet. >> 5% up 5% down? >> they were hiring more pilots because on the leisure side, travel is back before the pandemic it is the business related travel which hasn't come back as much that is the more profitable for the irlines. people are willing to travel they just don't want to do it for work or commute to work. that is what we are starting to see. two economies. one, for me, i'll do it. if it is for you, for work, i'm not comfortable. >> one of arthur's points is after working at home, a lot of people just don't want to work and want to quit their jobs.

you say, come back to work where you used to like it. they say, no i would prefer working from home they wrefprefer working from ho but it is so bad, they want to quit. >> there are two camps 25% want this and 35% want the opposite joe, you weren't here. it is not necessarily the work you don't want to come back to, but the commute. white collar workers an article of 31% of white collar workers are back in new york city and san francisco and los angeles and washington, d.c. that is because the commute for those people is an hour plus each way by the way, traffic patterns are already back more people commuting are driving themselves you have no parking anywhere because restaurants are all over the streets. if and when they come back, it will be horrific commutes stink

now people realize they can do the job and not have the commute. that is where you will have pushback >> do you ever look at what is going on >> oh, yeah. i took pictures back here yesterday. >> the watermelon smashing >> yes it happened right here yesterday. i will say it is crime -- >> our windows are okay? for sure has anyone tested that >> let's not talk about that. >> all right times square like the '70s again. "the deuce." back to "the deuce." >> yeah. driving in on the side streets with the restaurants activities taking place before 5:00 a.m >> how about the trash >> joe, are you voting in the primaries for mayor of new york city >> no, i'm not a new york resident you know that. >> i know. >> i saw "the post" where this

guy used to be a cop that might be a great idea >> i'm not -- i'm not voting either >> why >> you don't believe this. i'm not registered i'm registered as an independent. i can't vote when we come back, travel in america is ramping back up can stocks recover from a brutal year we will have that next. as we head to break. a milestone with air travel. tsa numbers are in and they are big. on sunday, more than 2.1 million people took to the skies the most since march 7th, 2020, days before the lockdown went into effect. we cracked the 5 mliilon mark twice, including this past sunday "squawk box" will being right back >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business.

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good morning welcome back to "squawk box" here on cnbc look at the futures and see where things stand dow opening off and s&p 500 down

over three points now. becks. thanks, andrew trial cruise setting sail on monday night marking an important milestone at the u.s. ports. cruise stocks have setting sail as well. up double digits for the year right now. j joining us to talk about the sector is patrick at truist. pat patrick, the cruises are not back in form, but the stocks are. do you think the stock prices are justified at this point? >> i have thought for a number of months they have gotten ahead of look at the very bullish expectations for next year and 2023, specifically 2023 where some are forecasting to be in the 30% or 40% ahead of

2019levels it seems aggressive to me at the moment >> part of that, i think, is also because of the additional debt and equity that the companies have issued or taken on how will that impede them? even if they do get back to full strength >> that's going to be below the evaduct line on the pe or the eps. certainly these companies have taken on billions and billions of debt and issued billions of equity that is hurting your earnings. certainly as we look across the pe ratios for 2023, many of these names are trading at mid to high teens if not 20 times 2023 pe which is versus covid.

>> we have been focused on the cdc guidelines which have been strict and what has happened from the governor of florida who doesn't want any requirements for vaccinations coming out. i've been looking through the noise on this. somebody sent me a note yesterday and said when it comes to the caribbean, if you are not vaccinated, you cannot disembark to go on to the island or if you don't have proof of vaccination. it makes it moot if you can't get off the boat >> i analyze this 24/7 it is hard to imagine if you are a travel agent or customer cruise lines have a very difficult time, let alone covid, trying to deal with the governor in florida what says you, as a

business, cannot ask someone if they are vaccinated and then you may have the islands in the caribbean saying you have to be vaccinated do you want to be that customer who thought one thing and get on the vacation or not allowed to get on vacation? i don't think that makes a lot of confidence in the customers' mind to take a cruise vacation the good news is i think i heard you talking before the break of the tremendous amount of demand and pretty limited capacity of ships sailing. i'm not worried about them filling up to start with you know, what happens as more ships start to come online and if these issues are not resolved it can be a messy situation. >> having said all this, i have heard that there is more strength in the luxury market than the mass market is there a stock you like better than the others? >> yes, with caveats

norwegian cruise has one-third of the business from high end luxury we do a tremendous amount of survey work and research essentially. we clearly see the greatest strength and booking demand in luxu luxury that bodes well for norwegian. i have to say the caveat norwegian is the most adamant about requiring vaccinations it is place your bets here they have the greatest strength in bookings, the governor could stop cruises out of florida all they many want to do it. it is very day by day and minute by minute with the ituation. >> patrick, i want to thank you for your time today. get back to us if you see more clarity on the horizon with any of this stuff. >> i will. thank you so much. >> thank you coming up, shares of lordstown motors down 50% this

year we'll have an update on the company's search for funding later, a bipartisan group, yeah, bipartisan group of 20 senators outlining a infrastructure proposal. senator jerry moran is working on that proposal he will join us. reminder, you can watch or listen to us live on the cnbc app. we're coming right back. (♪ ♪) whether it's a technology first, (♪ ♪) a fashion first, (♪ ♪) a science first, (♪ ♪) or a first for us all (♪ ♪) whatever you hope to achieve for your business, cloud first helps you get to value...first (♪ ♪) let there be change accenture

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stocks to watch. we start with lordstown motors it is evaluating partners the company opened the assembly plant, a former gm factory in ohio, to investors and reporters yesterday. earlier this month, lordstown said it may not meet the growing plan if cannot raise more money. and delta airlines is hiring 1,000 more pilots by next summer it is recovering as the restrictions start to ease delta cut pilots through early retirement and putting some on inactive status. victoria's secret is

borrowing $500 million to pay for the split with bath & body works. this company has been split up and put back together and recombined all of the les wexner companies. >> it was a rebrand of all that. shares of sanderson farms is higher the poultry giant is the third largest chicken producer by capacity it hired a partner for possible advice on a sale and a tttracti interest from investment firm continental grain. coming up when we return, more on "squawk box. has the pandemic changed the employee/employer relationship the next guest says the economy

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welcome back to "squawk box. there is a new era of greater worker power and how americans do business. it is due to the pandemic induced changes. that is all with our next guest where the economy isn't going back to 2020

fundamental shifts have occurred heather, it is great to see you. a fascinating piece. so many elements of how you breakdown what's happening in the economy. i want to start if, i could, oddly enough with lumber and housing. you talk about both and while lumber gone on such a rise, it's come down but you have a pretty interesting insight which is that on the ground it's not actually going to change that soon because so many -- so many housing suppliers have bought that lumber at such high prices. >> yeah. that's certainly what i heard. i called around to home builders on the ground. on the bloomberg terminal the prices are coming down but they will not see those from their suppliers or if you're going to a home depot probl probably until the end of the summer i thought the other insight i heard that really surprised me is that a lot of these home builders have been changing

their behaviors, for instance, a home builder in savannah, georgia said for the first time in building houses for 40 years, he changed his standard contract this spring to no longer guarantee the price of a home or the time line. it used to be they would be pretty close to a certain date he said now we write in all contracts that we can unilateral extend the deadlines or raise the prices and i don't think they will change the contracts after the summer, even if the price comes down i think this is a more of a permanent shift in how prices are set. at least in that part of the economy. >> the other thing that you talk about and write about is this idea that housing prices obviously have gone up, that you think they tucontinue to go up n it starts to hit the renter, the renting market which it hasn't thus far it doesn't look like. >> yeah. that's correct i will say this is one of the more controversial parts of the piece.

i heard from a wide range of people on this issue i've also heard that some white house officials are particularly worried about rent obviously huge part of people's budget, particularly on the low income side. pt you can see a scenario playing out where these high home prices are, of course, keeping some people from being able to be first time buyers, sort of priced out of the market that could potentially cause more renters and going forward than we might have expected. we've also seen the dynamics of high home value purchases by investment firms and others who are now trying to rent those homes. and it was notable that is core logic data, 5% increase already in april on single family home rentals. some people argue to me, yeah, but there's been a lot more high end apartment stock come on and say new york and washington, d.c., and some of the big it is y cities across the country. what is different this time is

we're seeing the potential rent increases and home price increases in second and third tier cities in the sharcharlotto the world and austin, texas. that we haven't seen quite as badly or boise, idaho, is what we're seeing now >> what do you think the long term implication of that is? you are arguing this is a bubble are you arguing that this is a permanent shift in how we work these cities which had been, i don't want to say unloved but being loved more and then, of course, there are described as zoom cities. people that are going to work from places far away from major cities do you think that is a permanent shift? do you think that ultimately it returns to what it looked like a couple years ago and, therefore, there's going to be a big arise and then a big fall? >> obviously, we're waiting to see what happens what i would argue is it's -- i don't think it's going to go back to february 2020. you know, some of the -- you can -- is it going to be quite

as many people working on zoom and working remotely as what we saw in july 2020 no but we are clearly going to have more people doing these remote work type situations than what we had prepandemic and that's going to keep these second and third tier cities in a housing crunch it's going to take a long time to build more houses, particularly the first time home buyer variety. >> how much of this is a function of sort of second, third tier cities people just moving to them because they now think there is an opportunity to work remotely? how much of it is people working in cities or other towns where they're going to work in a hybrid approach but if you're going to work from home two, three days a week, you need more space? >> yeah. everybody wants a yard now we'll see if we have more gardening shows going forward like in the uk i think for me the biggest shift, we haven't really got to

this one yet, is i've been calling it the great reassessment of work in america. what i hear over and over again and i talked to unemployed folks and workers every day from both high end workers and low end workers who were in retail or restaurants pre-pandemic is i want something fundamentally different. the past year totally changed my life for some people it's i want more time with my kids or with my aging parents. and that's why i'm moving to a different city where i think there is better life balance in some of the smaller cities i can leave the office at 5:00 and not get nasty looks. or it's low income workers saying my life is worth more i don't want to work in certain conditions i want to pursue my dream of doing the arts or doing education or working in real estate and in a different sector >> and the question is, of course, is that a permanent shift and can it be a permanent

shift in a tight labor market it works. in a less tight labor market, it's hard. >> here's what i would argue the key is this. if you're sitting here thinking the power shift is going to go back to the hands of the employers in september when those unemployment benefits expire, i think you're naive will it get a little better? yes. we won't have 10 million job openings and a few hundred thousand hirings by september. here's what is really changing we saw an exacerbation of retirements and the census just said, i thought it was really interesting, the census said the most common age in the united states is now 31 and 30. why does that matter i just, again, i hear from people i aged out of my 20s i don't want to work in those low end jobs >> heather, we appreciate it thank you for joining us

fascinating piece. we hope to talk to you again soon >> thanks. >> you bet >> when we come back, a rare interview with lucid motor ceo should tesla fear the increase in competition plus a look inside the new showroom opening in the meat packing district here in new york city. also, check out shares of gamestop this morning. the company saying it has completed the sale of five million shares raising a little over $1.1 billion. it had announced the intention to sell the shares back on june 9th. the stock up by 7.8% "squawk box" will be right back. for members like martin. an air force veteran made of doing what's right, not what's easy. so when a hailstorm hit, usaa reached out before he could even inspect the damage. that's how you do it right. usaa insurance is made just the way martin's family needs it with hassle-free claims, he got paid before his neighbor even got started. because doing right by our members, that's what's right.

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to take workflows further, trust adobe on it orchestration by cdw. good morning futures searching for direction this morning today's test, congressional testimony coming from no other than jay powell. we'll bring you the prepared remarks from the fed chairman and then talk to veteran market watcher greg fleming the he electricity vehicle race shifting to the next gear. lucid ceo will join us from his showroom in new york city. and president biden preparing to meet with a group of leadersers

as the second hour of "squawk box" right now good morning welcome back to "squawk box" right here on cnbc take a look at u.s. equity futures on this tuesday morning. we'll show where you things stand. dow down about 10 points or 11 points now nasdaq though, powering higher 16 points higher s&p 500, going to call it unchanged. it is marginally in the red. should show people bitcoin it's down to 31,000. since we spoke in the 6:00 hour, i think it's gained about $500 i think it's now at $31,800. joe?

>> in addition to that at this hour, part of that cryptocurrency as we were just hearing from andrew, remain under pressure this morning. looking at ether they are going to crack down on the trading of cryptocurrency digital asset saw the sixth consecutive week of outflows that happened last week. also, exxonmobil is denying a bloomberg report that they plan to cut the workforce by 10% annually for the next three to five years the company told cnbc it's merely going through the annual employee assessments which is not related to reductions. however, reuters reports that the evaluations will assign 5% to 10% of workers to performance

improvement. plans that can lead to force the departured >> and delta airlines is pl planning to hire 1,000 new pilots it should return to profit the second half of the year. leisure travel has returned to pre-pandemic levels and more business travelers are coming back as well >> in other headlines, the european commission is opening a new investigation in google's advertise unit the eu's executive arm will probe whether the tech giant is breaking antitrust rules f and we're watching shares of gamestop this morning too. the company announcing that it completed the sale of five million shares in doing so, it raised over $1.1 billion of course, you probably remember it announced the intention to sell the shares back on june 9th. the stock is up by 6% right now.

andrew >> fed chairman jay powell plans to testify before congress on the central bank's response to the pandemic we'll have details on what he is expected to say. good morning >> good morning, andrew. inflation will be on the agenda this afternoon as jay powell testifies before the house coronavirus committee. in his written testimony, powell characterized the increase in inflation over the past few months as notable but said he still expects it to be transitory now he said that the current rise is due to pass increases in oil prices, a rebound in consumer spending and supply chain bottle necks but republicans like the ranking member on the committee representative scalise do plan to confront powell in all of this they argue the problem is too much stimulus. both monetary and fiscal and they have been highlighting spikes in gas prices, autos and housing as a result of wasteful spending by the democrats. meanwhile, the chairman of the

committee representative jim clyburn plans to focus on the facilities it had to improve them for the future clyburn also intends to press powell on the uneven pace of the recovery and in his testimony, powell does acknowledge that low wage service workers blacks and hispanics are hardest hit. powell said that he does expect job gains broadly to pick up as vaccinations rise. guys, he said the risk to the economy are really the same as the risk to public health. slow in vaccinations and new strains of the virus back over to you >> it will be fascinating to see what he says in relation to jim bullard says we were talking earlier in the program about when you hear somebody that is -- that's a member speak publicly, how coordinated you think those comments are with the official position that jay powell may

have what do you think? >> i think bullard has mind of his own and likes to go his own way at times i think it is intentional that powell did not mention either tapering or rate hikes in his written testimony at least i do know that chairman clyburn does intend to ask chair powell about reducing assets. the pressure you're going to see is not removing sporupport for e economy too quickly. republicans argue there is already too many stimulus or sloshing around the system so they're going to be a number of land mines for powell this afternoon. for investors and reassuring investors that the fed is not moving too fast. but also trying to navigate the political land mines in washington and make sure that he doesn't get cross wise with republicans or democrats >> all right appreciate it. great to see you

joe? >> thank you coming up, the rockefeller capitol management president and ceo is going to be on, greg fleming. he'll talk about a lot of things, inflation fears, what to expect from the fed and also the markets in general first though, as we head to break, don't forget, follow our podcast, please. squawk pod that gets the best moments and most interesting interviews if, there are any. no, there are. always stay tuned they're all interesting. stay tuned we need them all on there.

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welcome back to "squawk box," everybody. futures have turned positive we weren't down by much before the dow has gone down 25 points from about an hour ago to up 15 right now. the nasdaq up by 32 points joining us now is greg fleming, the president and ceo of rockefeller capital management he is also the former president of morgan stanley wealth management greg, this is an interesting time we're going to be listening closely to see what fed chairman jay powell has to say today. you think the prepared remarks

we just heard, i don't think that is going to be what moves markets. but potentially anything he says in response to the questions he is thrown could. what do you expect from him today? do you think he's going to walk a fine line? >> yes, becky. good morning, great to see you again. i think that he's juggling very challenging things on all sides. the market backdrop is, as you know, is positive as anything we've seen in a long time. in fact, this bull market so far has grown faster and higher from the bottom in any bull market in the post-world war ii era. so markets are very robust driven by two things one, what i've been calling a sling shot economy it really is moving forward here very quickly we've been talking about that on the show the levels of gdp growth that we're going to see are seeing and will see in the second half of the year into next year real really unprecedented in modern

time this gets us to chairman powell. the macroeconomic moves that the federal government through fi fiscal the fed have made to reinforce the overall growth and return from the pandemic so he's got quite the trick in terms of balancing all that's been brought to bear it has been unprecedented. multiples beyond what happens coming out of the credit crisis, trying to start peeling that back and at the same time, you know, balancing it against not wanting to do anything to slow the enormous growth that is coming forward and also he's now got the focus on inflation which is a big one. >> so all of that said, what does that mean for the markets we've been bumping up against new highs and are doing it on a pretty regular basis is that justified? based on what you think is going

to happen? >> you know, the market backdrop is really as good as it gets i mean, you've got accelerated growth across a large swath of the economy. that's going to be true also outside the u.s. increasingly going forward. the vaccines have really helped obviously quell the pandemic so that's on one side. the on the other side, you have unprecedented extraordinary measures on both fiscal policy by the federal government and talk of more as well as the federal reserve having done things in terms of the size of the balance sheet. obviously, the throw away policy that we have never seen before either so i think the market backdrop for the remainder of this year into '22 stays very positive the. >> as good as it gets, i mean, that's what makes people nervous, right if powell suddenly starts sounding like they're going to start tapering soon which would be anticipated given the strength of the economy we've seen to this point, how nervous will that make the markets how nervous should that make

investors? >> what he has in front of him as far as the federal government, he is really balance both is a very tricky process going forward of making sure that inflation doesn't accelerate and try to get ahead of that they start thinking more aggressively about that and sooner in the last couple weeks. he can't go too far there. because on the fiscal side, whe you look at the size of the debt in our economy now, debt to gdp or any ratio and look at interest payments on that debt, the interest payments are really not up a lot, despite the fact that the debt is up significantly over the last ten years because of the rate environment. as rates go up, interest payments as percentage of that federal budget and this will be happening at ticme babyboomers are retiring social security and medicare get more expensive, the challenge from a fiscal standpoint, if you have interest payments get close

to 10% of budget, you add in social security and medicare becoming increasing parts of the equation, that's going to put a lot of pressure on the fiscal side of the equation sow so he wants to get rates up to make sure he doesn't have inflation kicking in he doesn't want them too high. if if they get too high, he has challenges on the fiscal side. and that would -- sorry? >> is that kind of the third official mandate of the fed? they have to worry about employment, inflation and whether we can afford to service our debt >> that's the position they've been put in. because the reality is we've been adding to the debt running deficits where the fed is important part of funding the deficits. so going forward, if, you know, if rates were to go 200 or 300 basis points from here, we would have interest on the federal debt get close to or above 10%

of the budget. you add social security and medicare into that, there is not a lot left over. so he's trying to balance that and he obviously needs to get ahead ofinflation here they did a good job in the language last week you know, there are a lot of people saying what are they doing? how are they going to react? they did say they're starting to see it they did say they're going to start moving it forward and they're trying to thread this. they can't just jump pin and say rates are going to go up for all the reasons we're talking about here too quickly he is trying to strike a balance. knees a quite tight box with all the different things >> i'm pretty sure you're not going to get jay powell to admit that if congressional leaders were to press him on those questions f he is worried about making sure the debt for the united states can be serviced. if you don't want rates to go up by that consideration.

what are the longer term implications if in fact the fed is thinking about that >> well, you know, he is also thinking about the dollar. and the strength of the dollar as well as the currency. because if the federal budget and the federal deficit gets too far out of control and the only way that we can deal with that is through trying to artificially suppress rates, the impact is then on the dollar so he's got that consideration as well. you won't get into this level of detail in his testimony. i think what he'll say is that the economy is performing very well the sling shot economy the unprecedented system and the monetary policy worked they need to begin to start to peel it back at a pause where they make sure they stay ahead of any price pressure. he's been clear, he thinks the price pressure is transitory

>> greg, we're talking about current debt if rates went up would be scary to try to service. we got another trillion -- we're going to do another trillion on infrastructure we're doing that in our sleep. and they're also talking about, you saw the latest there is like a $4 trillion. i'm not sure what's in that thing. but they're just getting started here they need the cooperation of the fed to even consider any of the future things. and they're going full bore. they have pressure from that wing of the party to go full bore on this other stuff do you think jay powell is -- do you think he's onboard it's totally up to the fed whether they're able to do that. there is enormous political pressure on the fed to allow this to happen and without the fed, it can't

happen >> i don't know what he says in conversation that is not so public but i saw $6 trillion. you said $4 trillion there is talk in the left side of the democratic party of a $6 trillion stimulus. the reality is that our society at some point can't afford this level of stimulus and federal reserve despite those available to it won't be able to balance all the different parts of the box that becky he and i were just talking about so the fiscal side of the equation needs to be more displund a disciplined. you're seeing this joe, when he was on here, you and i talked about joe manchin and how he was going to become a household name well, there he is. front and center i you do think that federal government is going to have to bring discipline to the fiscal side of the equation the current level of debt. the effect that would have on an

interest payments even on modestly rising rate environment. let alone if you had 200 or 300 basis points it's a trillion dollars of interest on the debt every year. >> joe biden, joe manchin, joe kernan joe is back, greg. he's back! >> front and center. all three of those guys line up. >> no. biden and manchin. they're top two, right joe, joe, and jay, i guess are the -- jay powell. >> yes >> actually, joe manchin is a fair statement to say that that's one of the most powerful -- >> no doubt. >> right, after joe biden. >> yeah. >> some people say, you know, cynics would say even ahead of joe biden. that will be cynical >> yeah.

>> greg, it's great to see you thanks for checking in with us today. >> great to see you becky and joe. >> thanks. >> take care >> we have the ceo of lucid from the company's showroom in new york as we head to break, june is pride month. we've been highlighting our cnbc anchors and producers and here is another >> my advice for the future lgbtq community it is does get better look how far we have come in support of rights. marriage equality to workplace protections to eliminating don't ask don't tell imagine what we can all do together in the next ten years don't give up. know that it will get better

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so how do you all wanna play this? fast. that's another level. it is graduation season. a very important time of the year very important time for lots of families including ours. want to give a shoutout to a very special graduate in our

family this is our daughter kimmy she graduated yesterday from high school. we wouldn't be more proud of her. very exciting time there she is at graduation itself thankfully went off. the rain held off. so we were able to do the graduation in full we're incredibly proud of kimmy. she is going on to lehigh university where she is running cross country and track. she ran in the champions for the state, she qualified came in the top ten in her 800 run. >> that's -- i saw a mile. >> i thought we were trying to get to that point like in the olympics >> she's amazing i don't know how she does it she is looking to break five minutes. i think she's going to do it in college. >> and that just -- just manifests itself >> yeah. honestly, it was a reaction. she is late to track she started as a sophomore, was running hurdles. and then junior year got blown up by the pandemic she ran all through the summer that is her escape from the

pandemic and she came out of nowhere when she came into cross country. >> first time she ever run >> that is a fluke thing >> that is her her will and determination. >> some people can practice -- i can practice running fast for as long -- andrew, we can do this until the end of days. we're never getting under 8 minutes. never. >> she ran the 800 in 2:16. >> congratulations >> her first 400, the first lap was 1:04 >> such a hard time for kids it's so -- i meanit's a great achievement to get through high school but then you're so worried about college. college is going to be like high school squared on what you can accomplish and what you can do so all we do is just cry talking about it and thinking about it andrew, you got some time. you definitely will will fall like a little -- right i can get you -- >> awesome for her not for us >> sorkin, you were watching the

"frie "friends" reunion bawling. right? i want to be there it's going to take a video for us to show you're a big softy >> she'll call n she'll call in the show and tell us -- >> yeah. >> you no he what? >> kimmy, congratulations. huge congratulations >> this is the reason -- >> thank you >> and i'm not judging people who don't have kids. but you don't feel so bad about getting old. i mean, it takes a sting out of getting old. >> yes because all you want to do is watch them grow and take on the world. and they do. >> right >> anyway, when we come back, some lucid's ceo is going to join us on competition in the electric vehicle market. he'll join us from the company's showroom with the first electric vehicle, the lucid air

>> spacs are hailed as a more efficient way to go public, a way that allows the average investor to bet on earlier stages of growth but we're starting to see cracks in that

leslie picker joins us with more good morning >> hey, good morning after several months, spac issuance appears to be poised for a summer rebound that's against this backdrop of recent reckonning for several companies that were taken public via spac great fanfare promise of electric trucks, 27,000 orders then no additional capital requirements were expected now months later, it became clear that those orders were actually nonbinding. the company is bleeding cash and just lost its ceo and cfo. another company is going through us own spac soap opera the founder david hall is undergoing as he recently said, a fight to the death with a company that recently ousted him as chairman. he initiated arbitration this month alleging he breached the contract and violated trade information. he got his own representative on the board. now investors in it both companies taking a massive hit

here so some are starting to realize that perhaps this more efficient way to the public markets can in certain cases at least inc incentivize risky behavior guys >> leslie picker, appreciate it. it is a fascinating issue. we've seen a number of spacs go in the number of different directions our next guest is the ceo of one of the largest spac deals of the year lucid merging with churchill capital spac shares of the blank check company are down more than 50% since that merger was announced back in february joining us right now though, first on a cnbc interview from a brand new showroom in new york city is lucid's ceo. set great to see you st i have seen that showroom i now walked around it it is a remarkable thing i know that you have a vehicle

right hund that you is, i should say, on sale we should talk about deliveries in a second. but on sale. nice to see you, peter >> thank you nice to see you, andrew. great can you actually see us in person this is an awe sysome studio tht we're opening in the meat packing be district of manhattan. invite everyone to come and see this car >> i have so many questions to ask you about the vehicle behind you, about deliveries, about capital expenditures and the like but i don't know if you can hear us on the way in to this segment. leslie was talking about sort of the state of spacs a number of which have fallen in terms of valuation i'm curious how you think investors should think about that and how investors should think more broadly about the valuations of ev companies

>> i think the real differentiator here, the long term value proposition of lucid is our technology, our underlying technology. behind me we have the lucid air here this is the first electric car whichal chief over 500 miles rau range. much it's going to do that through the prowess of the in house technology vertically integrated technology and vertically integrated manufacturing capabilities that's what differentiates us from others who don't have a technology and the long term value lucid is in its tech. more broadly, we have seen the shares of tesla be challenged over the past several months what do you make of the way the market is valuing evs? >> i think there is a ro

recognition that finally evs are the future and the pendulum is finally going to swing now and one or two of the remaining doubts really which are restricting the widespread adoption of electric vehicles, brings anxiety and cost of entry. now with range anxiety, we addressed that with the lucid air. over 500 miles range we can replace range anxiety with range confidence. the other thung ising is we have most efficient car with the most efficient range. and that efficiency will drive down the cost of future models and that's what i'm particularly interested in. that's my passion. to industrialize electric cars through ultra high technology. >> technology is very, very

exciting i go back to the value i think that investors are trying to grapple with what -- with what kindof multiple they have and how they should be valuing these companies. tesla obviously has a remarkable valuation that effectively means that it is big by market cap but if you were to combine almost all of the current the question is you look at the val waugs of your company. you look at the val waugs of others there is a lot more competition in this space. do you think that investors should be using the valuations of some of the older car company models classic companies? volkswagens, general motors of the world? should they be looking at a tesla when they look at you? what do you think is the appropriate way to think about it >> it's a fascinate point you raise. and i mean tesla is commanding its valuation as future looking. and also, because it is in the

position, it is the preeminent technology company in the ev field. that's why there is such high market cap it's now going to be two runners in that race lucid is going to join as a new force in ev technology and that puts the u.s. in an incredibly healthy position, having two front running ev tech companies in tesla and lucid and i think it's the -- again, the technology that justifies those valuations it's no longer the commodity valuation, how many cars you build that determines the value of a company it's the technology and the future potential of that tech. and our tech has got the future potential truly mass industrialize electric cars. >> peter, how do you think about general motors they're aiming to produce about -- by 2035, they want to have 30 new plug in models

arriving and 30 new plug in models arriving by 2025. and they plan to make a $35 billion investment >> well, i really welcome what gm is doing. but let's see how successful they are in implementing that. there is no such thung really as a m thing as a market for electric cars people are saying that market is saturated. there is a market for cars and the more better electric cars that come along, the more the penetration into the car market will beoccupied by evs. and that's why i welcome the competition, particularly mercedes is coming now with the ev -s. it can be compared at the top table with the manufacture that invented mercedes benz and we're always in the top.

it's mighty crowded down below >> right >> peter, you said you plan to put vehicles into production in the second half of the year. the second half of the year begins next month. so what does it look like for you right now? >> well, we keep the landmark red letter day last friday we started building our quality validation run production run of cars we completed the preproduction run very successfully. and last friday, june 18th, the last working day of spring, we had had a quality validation build at our state of the artifactry in arizona. there's a big difference here, andrew the quality validation build cars are the cars which ultimately we will sell directly to customers once we got the quality right. and that build is currently

under way. this is a big step forward in our mission to industrialize lucid air. >> you said that you plan to deliver 577 vehicles this year you have 10,000 plus reservations are you on schedule? >> absolutely. we're back on schedule and as soon as the quality is right, we're on schedule to release the cars what i believe will be the best car in the world to proud new owners in the second half of this year we're absolutely on track for that >> and i said 10,000 plus reservations what do the reservations look like right now >> over 10,000 and growing it it's very heartening. and we're responding to the uptake and increasing demand for lucid by accelerating. we're accelerating 350 million of investment bringing that forward to get better vertical integration in our plant

throughout '22 and '23 and then we're also announcing an additional 6% or 7% overall un investment in our business plan between 2021 and '26 with that money we'll be able to accelerate the growth of the company, secure and do risk factors and also provide greater flexibility in terms of our mix of product we're going to incorporate an expert 2.7 million square feet into our factory by the end of 2023 i'm very bullish about the future >> peter, we appreciate you joining us we look forward to following your progress and hope to talk to you again very, very soon thanks >> please come down. >> we will we will. still to am come, arthur brooks on the post pandemic workforce

>> that's his message that he gets from the books he's written too. >> it's all about entrepreneurialship and the dignity of work and free markets. it's a feel good interview first as we head to break though, we're watching the shares of sanderson farms this morning. the poultry producer reportedly exploring a possible sale. already said to have done some interesting things stay tuned you're watching "squawk box" on cnbc s everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system

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still to come this morning, arthur brooks on the future of the workforce. later on, mike novogratz on bitcoin's big week bitcoin is down by 3.3%. yeah, you can see this across the board. serious pressure we'll talk about all of this stay tuned iss bc watching "squawk box" and th icn

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ncht morgue an stanley's ceo issued a blunt warning about the return to work saying in his words, he wants workers back by labor day. fitting, right a return to the office in the future of work, let's welcome arthur brooks, aei president am he is also with harvard university and contribute writer

with the atlantic. again, trying to convert the opposite -- do any of them agree with anything you say, arthur, and post of the podcast, the art of happiness i described you as the first i said claude ostein, he was a pitcher. you make me feel good and you make me think that life can be positive and that we can all get along and that we can all ultimately find happiness. those two are not related by the way. the. >> no, i understand. but you deserve to be happy. and the truth is, we find happiness with within us that's the truth this is a pretty interesting topic you have the employers saying that everybody's got to come back to work we have a real bifurcation in the workforce right now. there are companies that are finding ways for workers to not come back and the reason for that is because they're saving a boat load of money now that we're relatively productive on

zoom workers are getting caught in the cross wund ind here anything goes on zoom now. everybody can find -- >> yeah. that's bad but sooner or later, workers have to put on pants and go back to work. i point out, what is weird is that people got so, i don't know, disillusions working from home they want to quit their job. no, i don't want to come back. what is all that saying? that you're whole idea of all -- of earned success and dignity of work being what makes life worth living that, throws a wrench into that whole theory >> yeah. not really people have a lot of momentum. people are lonelier than they think, actually. there is a lot of research on this people can be depressed and they don't realize it one of the worst things i've

seen is 30% of americans, 28% of americans are exhibiting signs of clinical depression in the late dawes of the coronavirus epidemic, especially people working from home. what that does is the signs of malaise, of loneliness, of isolation and depression and actually inhibits your exefunctn of your brain to help you make decision that's help yourself. you have to find the happiness within that is harder to do when you're actual linbehind the eight ballf your own depression. people are stuck at home we hate it we want to go back to work time went on, they started to nest a little bit. so you find this simultaneously most people feel they would prefer to work at work but most people prefer to work at home. it is a law of psychics. people at home tend to stay at home and we're going to have, i'm afraid, a real wave of isolation and loneliness and depression, epidemic behind the coronavirus epidemic at least based on the data that i've seen.

when we talk about, arthur, that is a basic tenant of brookisms, whatever we want to call them, brooksisms is that work is, you know, people that win the lottery and get a lot of money typically, it -- people that don't win the lottery and never have that kind of money can be much happier and much more, you know, life has much more meaning if you are earning and successful does staying at home make it much more difficult for you -- your thesis to work that work is what makes life worth living you have to go out into the world, don't you >> makes it a lot easier to be productive there is a happiness portfolio there are four things we need to put a account into each day. you need to diversify portfolio, your faith be, family,

friendships and work that does only two things. you know, when you're the host of "squawk box" or professor of harvard or whatever, you need to earn your success which is to say you feel like you're creating value with your life and work you to serve other people, people with less power of you. those are the two characters teaching at theist or driving a bus, if you're earning success, you get happiness from work. people don't have balanced diversified happiness portfolio thi these days p it's not the work part, it's because of the relationships part they're more isolated from the people they love they're not seeing their friends. some semiconductor will say it's great, i have time with friends. most people have attenuated relationship with friends. what everybody needs to do who is watching us right now, no matter what your employer is doing, put a deposit in your spirituality, read something -- read some wisdom literature today. call your mother you know, the ties that boind that don't break, i don't care

if you disagree on politics, you many you do that cultivate your friendships a lot more than you have in the past use the technologies that you and i are use right now but for social reasons and then make sure in your work you feel like you're earning success and you're serving your sisters and brothers i'm telling you, no matter how we're doing our work, these are the ways we're going to be happier than we are today. >> you just pointed something out again. and i don't -- i don't feel like -- i get off my lawn, mr. never cracker. but you don't know how we ever get along again with social media. i just -- it has exposed the dark ugliness of a lot of human nature >> yeah. >> anonymity or -- and it's now we're in this partisan world which may have existed beforehand but just gets exacerbated by what we're seeing on social media. the i don't know how we ever love neighbors again look at the political divide

right now, arthur. i mean, it's -- and both sides, they're not interested in even trying to come to an understanding with the other side and a lot of respects i feel that way i don't see any chance of any common ground. >> yeah. what happens with that ordinarily in american life, there is a lot of research, there is a lot of history on this you go through the periods of real pop u ulism, polarizati gets worse and then kind of cool you get a wave or you get -- it gets cool to say, hey, man, you disagree with me come sit next to me. but that takes a lot of leadership the way that each of us can start that revolution and at least become happier as individuals, we don't have to get on social media. i do recommend that everybody go on the social media fast for two three weeks. kind of the juice cleanse of social media it is important to do that

you'll find you don't miss anything every minute you spend beyond 16 minutes, you'll get lonelier it is like eating big macs and social media only. but even if you're on social immediate yashgs make a rule for yourself of saying five positive empowering loving things for everything that you say that is critical and sarcastic that is a five to one rule that marriage counsellors bring to bring them back together that are on the rocks if if you use a five to one rule, you'll get happier and social media will make you less polarized with whom the people you disagree that's where it starts is with us >> talking directly to me. what gets me is -- so you watch what is trending on twitter. and i think the major news organizations base their coverage and their viewpoint on 15,000 tweets out 3600 million

people in this country don't say anything you wouldn't say in front of your grandmother. that denominator is too low. i need to say more than that if they're going to base the major media outlets, going to base what they think and what they allow on 15,000 of the most woke twitter comments, how we ever going to get past this? i am not hopeful, arthur of i don't care if i do five to one. >> keep hope, joe. you're a leader. you can do it. >> leaders lead h you have to come together, not stay apart. okay i'm a decider at times too thank you, arthur brooks you have been called the joel ol stein of harvard >>, no i want to be the pitcher of ideas into the major leagues. i don't know what i'm talking about. >> you don't neither do i coming up -- thanks, arthur. we'll see you again. i do feel a little better. do you feel bett aer tt?erftha

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use a single hr software? nope. we use 11. eleven. why do an expense report from your phone when you can do it from a machine that jams? i just emailed my wife's social security number to the entire company instead of hr, so... please come back. how hard is your business software working for you? with paycom, employees enter and manage their own hr data in one easy-to-use software. visit paycom.com for a free demo. hon? first off, we love each other... was the dow's best session in three months and surged almost 600 points. however, we are watching digital currencies getting slammed again this morning investors get another chance today to hear jay powell's views on inflation and rate hikes. wall street will be parsing the federal reserve chair's every

word when he testifies in congress in a few hours. and president biden expected to meet soon with a group of senators working on a trillion dollar infrastructure compromise we're going to speak to a republican senator, member of the bipartisan group as the final hour of "squawk box" begins right now. good morning and welcome to "squawk box. one, two, three. yep, we're here. i'm here with becky quick and andrew ross sorkin you're going to take time off. >> we are? >> i admit, i admit i have another little stint coming up and on the way in this morning i was checking out some details about it i felt bad

i'm going -- >> i haven't been on vacation for so long. just coming out of the pandemic. >> right >> cherish that and refuel while you can. >> it's bad. on the way in i'm checking out what was the midway point if we were to drive this next time if the midway point looks like somewhere in north carolina, what is around -- so i -- yeah already checking out no, i love it here i do and i'm -- we're all very lucky. we're very fortunate u.s. equity futures on the dow are indicated up a little bit, about 30 points or so. the nasdaq indicated up a little more, 1% and the s&p 500 indicated up at this pount about five points treasury yields, big happenings, big goings on in at the last ten days that i at least noticed

you couldn't miss it when it went down to 1.4 on the ten year given that all the inflation numbers seem pretty hot. it is welcome back at 1.5. cryptocurrency is hard to miss will we'll talk much more about crypto in a few minutes with galaxy digital's mike novogratz. it's been a very tough week. the lowest level for bitcoin since way back in january. here is the big business stories that we're talking about today fed chair jay powell is going to tell members of congress that the economy is growing but faces continued threats from the covid-19 pandemic. that's according to some of the testimony that's been released ahead of his appearance in front of the house select subcommittee on the coronavirus crisis. investors are paying close attention to the unscripted answers to the lawmakers questions, specifically anything about inflation tapering, maybe bond purchases or the potential

path of future interest rate hikes. especially given what we saw last week even on "squawk box. fed members indicated a first post pandemic hike could be coming earlier than previously thought. so they cut those guys out >> i don't know how much of it is cutting them out or he was on and saying what he sees. he kind of calls it like he s he sounded the same as every interview we ever had with him bullard said here's what i think. i don't think it's insane to think we might be raising rates sooner than had previously been anticipated just based on how strong the economy has been. >> total data dependent. like it always is. >> yeah. >> and so many things have been surprising about going into and coming out of the pandemic you would have to be crazy to just box yourself in a corner. >> we saw the wednesday blog after the meeting.

he admitted he anticipated a rate huk cike coming next year he thinks rates should go up. >> ahe said no >> 2050? >> maybe begin to talk about tapering in 2050 >> that's just it. this say consensus of a lot of different people you'll have opinions that vary widely >> the executive arm of the eu opening a new investigation into google the probe will look at whether the tech giant favors its own on line display and in an e-mail, a google spokesperson said thousands of european businesses reach new customers every day because the products are competitive and effective. they also say they will town answer questions and engage constructively with the eu and according to an internal company memo, delta airlines is planning to hire 1,000 more pilots by next summer. the move comes amid a sharp rebound in travel as pandemic

restrictions ease. delta says leisure travel is back to pandemic levels already and business travel begins to pick up as well. meantime, the federal government releasing billions of dollars in long awaited grants to airports around the country that suffered through the pandemic slowdown. phil lebeau joins us with the latest there phil >> andrew, this is an important day for dozens of airports around the country much it's not that the airports were going to go under or go into bankruptcy. but they have struggled over the last year and a half to fully commit to the projects, to the payrolls of a number of their people and as a result, they're going to be needing this money that is going to be awarded by the faa. a total of $8 billion. it will be used by the airports in a wide variety of because some to cut debt and some to help pay for lost rent and, yes, there is a component to make sure that at least 90% of the airport employees remain employed by the airports that

take these grants. airline passenger levels, they're down anywhere between 20% and 30% depending on the day of the week. i just checked on yesterday's numbers, down 25%. another day where more than two million passengers were flying take a look at the airline index. the passenger levels are approaching 2019 levels. but we're not there yet. we're still down anywhere between 20% and 30% overall. as you see, more business travel come back over the next couple of months. most believe you'll get that back into that down 10% to 20% it's the international component. that's really what the airlines are waiting on especially some of the airports that have international flights. they have hurt a little bit more than other airports which are primarily domestic oriented in terms of the flights coming and going. and as you mentioned, delta, as you say a look at sshares of de, we're going to add another 1,000 pilots by next summer. this is part of airlines gradually increasing their

flights, their capacity. it's not always going to be the smoothest. but they're going to be doing that over the next several months we've already seen a big dramatic increase in terms of capacity over the last three months andrew >> phil, before you go, should we be expecting more flight cancellations and delays like this summer like what we've been seeing the last few weeks? is that what you're expecting at this point >> i wouldn't be surprised i would expect that you'll see some bumpy tomimes what you're seeing with american right now, american got a little aggressive in terms of bringing back flights they had no slack in the system. so when you have bad weather, you have some cancellations, you don't have the staffing levels where you need them to be, then you got to go back and cancel will flights it is the end of the world no but it's not good in terms of how you were treating your customers. and american knows that. they don't want to have to cancel flights and make people change the flight plans. you'll see this from time to time look, we saw it last year around thanksgiving and christmas you can't flip the swuchitch and

get the planes back in the air and have staffing at the levels you want it's going to have rough moments. >> phil lebeau, thank you as always phil mentioned billions of dollars in u.s. airport aid. there is even more money for airports inside a bipartisan infrastructure proposal being worked on by a group of 21 senators the $25 billion to be -- excuse me to be exact. more details distributed by the group. spending $360 billion on roads and bridges. nearly $50 billion on public transportation and billions more for rail, water, infrastructure, broadband and climate resiliency however, the white house said yesterday that despite telling two democratic senators he was encouraged by bipartisan efforts so far, president biden is also focused on budget resolution discussions in the senate. that is probably a reference to the possibility that the

democrats may still try to use budget reconciliation to pass a larger infrastructure bill on their own. joining us now is senator jerry moran. he is one of 11 republican senators working on that bipartisan framework and, senator, tell us a little bit about where things stand it is mixed messages depending on who we listen to these days >> it is mixed messages here within the capitol dome. but i where we are is that 21 of us have decided we want to provide a plan that can be supported, pass the united states senate and be approved by the house and signed by the president. infrastructure investment is important to the economy, to our ability to compete in the global economy, provide safety. it's time for us to invest in infrastructure and just because we can't and in my view shouldn't try to do everything, we can do some things. we can do it in a bipartisan way. i think today, later today the republican members, the 11 of us in that group will will meet to have one more conversation

i would guess it will be focused a lot on what the reports are from the biden administration, the conversations with the two democrat senators yesterday. the goal here for me is to provide infrastructure demonstrate that we can do things in a bipartisan way the reduce the likelihood of the use of the opportunities democrats have for passing things with 51 votes i hope this prevents reconciliation use for further infrastructure issues. but most importantly, i hope this diminishes the appetite on behalf of democrats to end the filibuster which i think is hugely important the 60 vote rule brings us together it allows for minority views to be heard and it will be a change in the united states senate that is damaging to the american people if that happens. so part of this is to make certain that we have demonstrate that we can do things in a bipartisan way that doesn't damage the country and is not spending $6 trillion that was

spoke about by bernie sanders yesterday on the news shows. >> the thung we keep hearing is that the devil is in the details. especially in how you pay for all these thungs so where do you think we're headed if you're really going to get down to buzz and scope out more of this, what is it going to look like? >> well, i think we are getting closer to an agreement on what the pay fors are infrastructure is always popular with politicians how to pay for it has never been an easy decision and one that has -- lacks popularity but it seems to me that we're headed in a way that will pay for infrastructure without a rauz in taxes. the issue we had had with the biden administration is twofold. their opposition to indexing the gas tax and their opposition to having electric vehicles pay anything toward infrastructure and so those conversations yesterday may have flushed out what the administration, i think set nool a weekend that we're now if you're denying us the pay fors, the 21 of us have agreed

to, or at least agree to in concept, then it's up to the white house to tell us what would be acceptable without raising taxes, without undermining the trump tax cuts of 2017. so it is still work in progress. but everybody seems in that group seems like this is something that is accomplishable but a lot is going to be determined by what the democrat reaction is, senator schumer who indicated he's willing to do two bills and including the one that we're talking about and what is the white house -- where are they going to land is president biden going to live up to his campaign advocacy for bipartisanship and what i heard as an inaugural address, do those words mean something i hope there is give and take by the administration and again for the reasons that i outlund >> senator, i don't know how close together the two sides are. i figure that climate resiliency is not a republican -- you probably didn't come up with that

i'm wondering whether when you hear that term, could you maybe give me more insight in exactly what you're talking about there? and does it differ from climate justice? do you know? could you go into both of those and let me know what we're talking about? i see it's $50 billion what are we getting from that? how do we get the c get the clie more resilient >> things that reduce the consumption of fuels based upon an oil based economy but that is inform many ways a sticking point has been a sticking point between republicans and democrats as we sorted this out. and it's necessary to have that component. again, it's what i hope will prevent us from having reconciliation that spends billions of dollars more on things that are not traditionally thought of as infrastructure so it is a challenge for us to

bring republicans and democrats together generally over this particular issue >> when you say you all have agreed for some pay fors, you as the republicans involved in this bipartisanship effort, i'm guessing you mean gas tax? what other potential increases are you considering? what other ways to pay for this if you don't want to undue the taxes put in place >> i did try to correct myself when i said we agreed to pay fors we agreed to them in concept i don't want to tie anybody to a definition yet but it is infrastructure investment by the private sector of it's public partnerships that allow for the broering capacity of the federal government to lend itself toward infrastructure investment. it's the opportunity for us to, in my view, have all vehicles who unite tilize the roads pay r them at one point in time the conversation is about indexing the gas tax.

it is utilizing much of the money appropriated for covid-19 relief by the federal government, by the federal taxpayers. and returning it to the treasury for purposes of investment and infrastructure that part which is unspent it is hundreds of billions of dollars. it is significant component. i recognize that is not the most conservative position to take in the sense that if we are going to spend the money on how it was appropriated, maybe we shouldn't spend it at all. fwha but that is problemably not an option it is important to spend it on things that do matter, infrastructure being one of those. >> my concern with this is when you start drawing the lines in the sand again, just like the biden administration said they're not going to raise taxes on anybody that makes less than $400,000, that means that they're not going to be able to go along with the gas tax or anything with electric vehicles. i just don't see how you all get to that spot when you have both drawn the red lines and it doesn't leave any way to pay for

it in the middle >> well, my hope is that those who are going red lines are doing so for purposes of negotiation. we have seen plenty of instances in which idz u. individual elected officials said this is our red line and then crossed it and so for purposes of negotiation, people are saying i can't do this or i won't do this we can't go to that point. and i hope when the time comes, which i think is now, is soon, that there is a recognition that those red lines were -- they were goals but still in order to get a bipartisan agreement, every once in a while people have to take a step, inch or two, across what they describe as a red line. >> so you're willing to step across that red line and say okay maybe we will rauz some taxes on corporations or on high end individuals too? >> i'm sorry i couldn't hear your question. >> i said you'd be willing to step across that line that the republicans have drawn where you're saying maybe we would be willing to raise taxes somewhat on either corporations orwe

wealthy individuals? >> there is a essential component is that we're not going to undermine the 2017 tax bill something we all voted for something we think was important to growing the economy and putting people back to work. and so i think that, you know, we would certainly say today that is a red line it is certainly one of mine in which you can't ask republicans to undo something that they have fought for and achieved and believe is important democrats have the issues as well we understand. we've been involved in the issue of obamacare for a long time it is just one of those things that politically it's unacceptable and in my view economically bad policy to make any significant changes or changes in that 2017 tax bill. >> i guess that's why we get down to the devil being in the details. it's pretty tricky senator moran, thank you for your ime it's real good to see you today.

good luck. >> thank you for your time didn't really take my bait resiliency versus justice? >> you want me to take your bait >> these terms defined so i what we're talking about. coming up, shares of gamestop surging this morning st tedayun (vo) while you may not be running an architectural firm, tending hives of honeybees, and mentoring a teenager — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you help others. so you can live your life. that's life well planned. t-mobile is the leader in 5g. experience it now with up to 4 powerful iphone 12 pros with 5g on us.

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plus, for a limited time,ask how to get a $500 prepaid card when you upgrade. call today. the shares of gamestop are surging again this morning ed video game retailer announced completed that previously announced sale of 5 million common shares, raising $1.1 billion gamestop's gains for 2021 holding at over 1,000% up about 20% just in the last month. >> when we come back, the big business of credit card rewards is about to get even bigger. a new program launching this morning promises to let people pay rent by swiping and by the way, you can earn points doing it we'll talk to the man behind that project we'll also ask him what he's doing to protect consumers next, gala ax digital's mike

novogra it tz joins us it's a conversation you don't want to miss stay tuned the you're watching "squawk box" on cnbc.

bitcoin plunging again this morning. now threatening bitcoin at least to break under 30,000 and already below some of the reept

lows that we have seen all this sparked by news of an escalating crackdown on digital currencies in it china joining us now with his take on butt bitcoin's fall and where they find some support, mike novogratz. mike you thought 40 would hold. it did not we're now at 30. while we're talking with you now, we may see a print with a two handle there it is, $29,824 where do you think the near term low will end up being? i know it's total conjecture on your part. >> listen, so we had china, right, really be much more forceful in their cryptocurrency that created a retail del deleveraging a lot of crypto happens in asia. a lot is chinese focused so we're seeing big

liquidations it's hard to call a bottom $30,000, we'll see if if it holds on today we may plunge below it for a while and close above it if it really reached $25,000 is the next big level of support. look, i'm less happy than the ones but i'm not nervous we continue to see talent come into the space i was talking to the big pension funds that are making close to making the first investmentes in bit counsel. i think we're going to see a shift away from asia and more to the developed world. every month they want more control over his country bitcoin is about freedom and so, you know, people say could it happen in america could it happen in europe? the answer really is no. we voted for our politicians our politicians are going to be very, very leer dwrou do something luke china >> just technically in past breaks we've seen awe pu pullbaf

much greater than 50% of the highs which is where we are right now. you don't think that's in the cards this time around you don't see it is it possible >> the ecostystem is so much mor mature every single bank is working on t their crypto client. i think they will see this as an opportunity to get involved. >> okay. back to fundamentals it's been pointed out that it can only mine a certain amount anyway it doesn't matter who it is. if chu if china isn't muning, it doesn't matter there is a lot of interest in china among the chun he's people and a lot of crypto kree oughting and even when they had to go to pier to pier or

over-the-counter, whan yotever want to call it, that is still going on and that's a big part you know, talking about a billion people or whatever i mean that's an important market for crypto. and -- >> it is >> you are going to fall on the prus w price. what the chinese have proven over and over, if they want their money, i'm sure they can find a way to get it right? and so i don't think you're going to see chinese people stopping crypto. the government is going to make it more difficult, 100%. listen, the president of the country sent his daughter to harvard. the last president, his kuids always had u.s. passports. they always want an edge

they don't want all their money in china and crypto is freedom >> if crypto is freedom, and we're talking about the united states being a democracy, how do you think the u.s. is going to regulate kboint? clearly they are not right now in any meaningful way. you now have a number of efforts to put crypto in 401(k) plans which i believe ultimately is going to force the hand of regulators to make a decision one way or the other about what that regulation looks like, what that does to private wallets or how the coin bases or firms and banks trying to build around this are going to have to deal with aml and other things to the point if you're looking on the down side versus upside, on the down side, you could actually take away, i would imagine, many of the benefits of

a bitcoin. i wonder how you think about that >> it's a good question. i think regulation is going to help us in it the long run right? right now the total crypto market cap is less than a trillion and a half dollars. this whole system works by becoming bigger and bigger it is less than 40 basis points in global net worth. the only way it becomes 3%, 4%, 5% is institutional money. we're going to get regulation. i trust the regulation will be smart. >> most of the players, i'm guessing coin based, operate like we're in. we're regulated. the sec is a public company. and so i don't think it's going to be a dramatic institution alibiers i think it will be quite good. it is certainly going to change the die nam uk of the regional

player other thing that is interesting about crypto, it's hard because it's a global market we don't have global markets you're building a protocol, not just u.s. bond market or european bond market, the u.s. do what they do and u.s. participants, it doesn't stop. >> and mike, one other question. how much leverage do you think exists in the crypto or bitcoin world? >> a lot less. you can see the leverage has come way down. lus en, our customers don't save a lot. we always felt we have a currency that doesn't get leveraged. the exchanges, you know, we offer up to 100 to unleverage. and so in some ways it is 2.0 h lots of leverage on the long

side and down side at times. and so the chinese are cracking down on that that come out of the market is a good thing in the intermediate and long run that's what created this excessive volatility that we've seen that in lots of ways it was a version of that. so i think having that come out of the market overtime is a net positive >> listening to you, i do think gary understands and one thing that i think works in your favor is you got a company called galaxy digital based on crypto. we have coin base that came out of huge market debt. we have jack dorsey and square and paypal and all these vested interests in the u.s. government not putting the complete stop on something like this but then again you have a government that is fortunes are so dependent on the dollar being

the, you know, the currency of choice for global trade that i think they might have to offset the two concerns they don't want to put a nasant innovative industry out of business but then again, they have a vested interest in bitcoin not displacing the dollar. the chinese are doing that too the they don't want the freedom to have the currency of choice >> i don't think people are seeing bit counscoin as replaci dollar it is a hedge versus bad monetary and fiscal. and so bitcoin is a sort of value most regulators are fine with when people start talking about it as money and transactional currency, that gets people more nervous. but that's not bitcoin's space at this point. i think we'll have a dollar st stable point

the big difference is ours will be centralized and that's becoming more and more clear every quarter >> mike, what you mention about bitcoin competing gold, we were talking earlier about how gold had the worst first half performance since 2013 you think that's why anybody who would have bought into gold during this maybe it was buying butt citcoin >> i think part of this is cyclical, right? we're coming out of the covid-19 era. everyone got jabbed. the economy is booming house is talking about having to pay for it listen, if the economy comes back and we're raising rates, the value inflation, you know, it gets toned down and so lots of the excess speculation will come off the burner so i always said i hedged my crypto portfolio with a big short five year position

we'll see. >> are you stacking today? >> no. i'm watching closely i think this flush under $30,000 could be a short term low. we'll see. >> you raise wages at bow jangles yet? you stul ill just talking the t instead of walking the walk? >> let me tell you, as our position shrinks in value because we fallen 25%, we find because to increase. >> all right i don't know >> coming up, maybe pay some of the guys in it bitcoin maybe not. thanks for coming on, mike, as always and we're strapped in. you're strapped in anybody in this space better get -- there are a lot of people people are yelling at me for

asking anything. >> not one of our bit clients sold there are a few. >> all right that's -- all right. thanks >> we got our seat belts on this morning. keep your seat belt on when we come back, we're going to go indepth on wall street's big bounce yesterday and how investors can mach some sense in this market action mike santoli will break it down for us stay tuned you're watching "squawk box" on cnbc with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;) no one likes to choose between safe or sporty. modern or reliable. we want both - we want a hybrid. so do banks. that's why they're going hybrid with ibm. a hybrid cloud approach helps them personalize experiences with watson ai while helping keep data secure. ♪ ♪ ♪ from banking to manufacturing,

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last friday, the market was down by a lot. yesterday it was up by a lot what happened? cnbc senior markets commentator joins us now and he has the answer what happened, mike? >> i have observation that's could maybe coalesce into an answer what happened yesterday, when it comes to the s&p 500, it was up almost exactly as much as the market was down on friday. the so this was a bounce kind of textbook if you look at the s&p 500 chart. it dipped on friday's close. below the 50-day average in bull markets, that is a place where it maukes a stand. all we did is come back to thursday's closing level overall, the picture is still the same kind of flattening out markets

still longer term uptrend is in place. one issue we had is undecisive leadership look at the momentum etf this is obviously looking at what has been strong the kinds of stocks, about 100 of the s&p 500 stocks with the best momentum. you see it's kund of rolled over a few times here it has not been able to get out of its own way right around here is where the etf itself reshuffled and kind of added the stocks that were more recently starting guess what it was a value financials tilt that is not been an asset right now. so there is a swapping back and forth of leadership. maybe it's a tidal shift maybe it's just nouz ise right . big outperformers year to date even after pull backs. yesterday's bounces didn't do a lot to change that general story that they're just kind of coming in will big outflows out of the financials etf on friday something like software, for example, is now threatening to try to make a new hue.

i think there is a lot of opposing currents. caught the market in a little bit of a flattened out period. we'll see what powell says maybe he'll add nuance to it >> that was a bug fat never mind looking at the transports there, we've been talking quite a bit lately about how the transports have been down they're down month to date you can see it on that chart they had the best first half performance at least they're on track for the best per formentance since 1987 >> it's an unbelievable run. it's not as easy saying the market last week told you that reopening, run the economy hot trade pricing power theme is over we don't know if it's over we know it's being challenged. we know it got a little overdone in the short term. now it is hashing it out in terms of maybe as we get into second quarter earnings which are going to be great on the headline level to see if in fact the market has priced in too

much or not enough when it comes to, you know, the fundamentals >> thanks, mike. we'll see you later. >> all right >> andrew? >> okay. coming up, when we return, an interview with the latest executive trying to disrupt the lucrative credit card rewards industry and this time it's all about paying your monthly rent with plastic that story and jim cramer's first tauke on the trading day ahead. it's all coming up this is andy, my schwab financial consultant. here's andy listening to my goals and making plans. this is us talking tax-smart investing, managing risk, and all the ways schwab can help me invest. this is andy reminding me how i can keep my investing costs low and that there's no fee to work with him. here's me learning about schwab's satisfaction guarantee. accountability, i like it. so, yeah. andy and i made a good plan. find your own andy at schwab. a modern approach to wealth management.

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jim cramer joins us now. i don't know i took a step back, jim. just being on vacation and i think that the default feeling is wow, we've come a long way. and valuations, blah, blah, blah and then i just started thinking about, wow, rates are low. the economy is great earnings are going to be great why don't i just keep it simple

and realize that it may not be a bad time to stay alone >> i think that's exactly right. it's just not a bad time i don't have a thesis beyond, well, i think you should be long i think you have to be, i don't know whether you should be at companies that sell 25, 30 times sales. a lot of companies seem really good i was reading about the autos today. they are so cheap. you get end of the chip shortage, geez, they're going to fly. why not buy them look how easy it was for gamestop to get the money it had? you know, it is just like you look at billion dollar investment for silver lake every time you think that is say company is written off or going slower or something, it gets an investment credit is easy i'm sure people who don't like this discussion you and i are having right now well saying it shouldn't b

shouldn't be like that but it is. >> you think there are concerns that -- i was trying to -- there are so many -- i'm like six degrees away from trying to figure out why there might be worries about a slowdown which would put the ten year yield at 1.4. i can't really get the why what is the slowdown about variance or is it about thefed finally stepping in and is it about higher taxes where is the global slowdown fears coming from? >> you think that what i'm -- the stimulus money runs out. you know, unemployment ben fefi run out. people start paying rent they don't want to go to work because the jobs aren't where they are so the companies that need people then have to start paying more you have wage inflation. and so then the fed has to slam on the brakes. that's really the kunind of bea store you that i keep going. that story isn't holding up water. let's see how powell handles the

questions. i think things are okay, joe i really do. we have big rebounds friday. >> one other thing that is let's say you got your eye on another farm. is there a place you buy bitcoin to try to make that money? at what level would you re-enter since you're not sure whether it's a good idea with what the chinese are doing? is there a place you re-enter to front another farm purchase? >> well, i think that you need to see some people who love it break ranks. i have not heard a person who loves it who loves it less i think you and i both know that the bottom comes when people say, you know what i've had it. i've not heard that at all so i'm kind of let's wait to see people give it up. by the way, no my sense he is doesn't see a lot of margin. but i think it's really in china. i think the chinese are very worried.

they don't want billion auaires many nin america to control the currency. i think too early. too early. i got that farm. it's really nice. >> would you go back in? if you could get it, would you go back in >> i luike ether better i would get $10,000 where i bought a lot yeah, i'd go back in i love the conviction. i think somebody has to break ranks. >> okay. jim, we will -- >> thank you >> good talking to you we'll see you in a couple minutes. andrew >> this morning's venture capital company is launching the built mastercard paying your rent with a credit card and earning points for those payments at the outset, they're partnering with the world's biggest real estate firms like related companies in blackstone. joining us to talk about it is

the ceo and nofounder. good morning to you. >> good morning. >> this is a fascinating development. and a fascinating product. explain to the audience how it works. typically people have not paid rent with a credit card. in it part because of the fees and surcharges >> yeah. so rent is the single largest expense the vast majority of americans. and what is crazy, up until today, you get nothing back, right? you can go buy dinner on your card and earn points you can book a delta flight or american airlines flight and earn points. but if you pay rent up to $200,000 i think that people are spending on rent in their lifetime, you get no points. you don't get to build your credit score and you get no closer to home ownership as of today, we're finally changing that. we have partnered up with the larges reels state owners in the company and master card. and we've created the first ever

loyalty program like american advantage but for housing. which means that you can finally earn points just by paying rent. and this is also the first ever credit card with no fees on rent meaning that 3% fee that they would charge to pay rent on a card is finally gone so when you think about all the people that have had to write checks in 2021 to pay rent, that is no longer the case and you can finally pay with a card for rent and earn points >> and explain then the economics of how in this works because typically the credit card companies have wanted the fees and clearly the landlords haven't wanted to pay fees, users haven't wanted to pay fees how do you afford to make this work then? >> so it is a broader loyalty program. on one side you have reelsal est owners providing points as a way to bring people back into

cities, whether that is related or blackstone or equity residential. on the credit card side, you have an even more exciting opportunity to get the next generation of cardholders rather than these gimmicks of people with high annual fees, people can now get points on rent and then mastercard and built can make money when people use that credit card if all their everyday spend so when you use that card for groceries or booking a flight, to earn even more points, that generates the revenue for the businesslike any other card. but i think one of the things that we're particularly excited about is given how big of an expense rent is, it really should be something that gets us closer to home ownership and so over the past three years, we've actually been working with the u.s. government and have the first ever regulatory approval to use rewards points towards a down payment. just by paying rent you are building your credit score to get you better rates and you are able to use your rewards points towards a down payment

you can also use them at every major airline and hotel, but for a young person thousanow rentinm # 2 22, 23, you have a clear path to home ownership just by paying rent >> i still just want to take a step back to explain the economics to the audience. because i'll be honest, i'm a bit confused by it i understand that there is no fees on the rent piece are there therefore higher fees or something else on other purchases? >> no, when you use your credit card today for any everyday spend, the merchants will pay typically a 2% fee and so the way this rewards program works is the more you use your card on everyday spend the more revenues that we're able to generate from outside spend, the more points you earn on rent. so instead of some of these other offerings that you might see which are say 2 x on dining, you can start to learn up to 2 x on rent which i think is much

more valuable to this generation especially when you think about a credit card with no annual fee given how many these guys get people hooked and then just charge them $500, $600 a year without providing that same kind of value >> but annum i wrong in thinkin that rent is probably the biggest single purchase that most families are making and so that is going to be out sized relative to all the other purchases that people will be making and it effectively what i think that you are suggesting is that mastercard, the banks, everybody in this network are going to be giving up fees on what is clearly going to be a massive number relative to everything else? >> look, today nobody is using their card for rent. because it doesn't make sense to pay $60, $70 a month just to put your raenent on a card. that is why 80% are still made by check but as a result young people

aren't getting access to the credit benefit of rent or points for rent and what we've done uniquely through the loyalty program, we're in over 2 million apartments across the country. so we don't have to spend the same amount on customer acquisition that most credit card companies do. and instead, you can buy that value back to renters, back to the young people in the form of rewards points and more. >> real quick, what is the interest really on it? >> standard. most people would be between $14 a 14% and 22%. but the key thing here is with the built mastercard, with built rewards, every young person will thousand be able to earn points on rent for no fees and build a path to ownership. >> i hope they pay their rent on time and then pay the credit card bill on time. great to see you appreciate it. good luck. coming up when we return, what you need to know ahead of

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steven spielberg has struck

a multiyear deal to make movies for netflix. and under the terms, spielberg's amlin partners studio will make multiple new films for netflix the new deal won't affect his long term relationship with universal pictures, which is owned by our parent company comcast. >> that was my question when you started reading that >> my question was which sequel is more likely -- or which of his movies is more likely to come through first, close encounters >> or jaws >> no. or e.t because both are happening right now out in new mexico, there is things flying around this ufo stuff, close encounters, we're encountering it every day, aren't we? are those china? >> i don't think it is china >> i want ohe.t. >> and e.t. will have an iphone, not one of those dial things >> phone home. >> he can text home.

>> will reese 's pieces make a comeback >> i've walked that road myself. >> that was the famous -- yeah we've had issues with that >> but you know that was a great marketing story. they won because they went to m&ms and they wanted to charge them, reese's said you can have them for free. >> reese's what? >> reese's pieces, have them for free that does it for us. right now time for "squawk on the street." ♪ good tuesday morning i'm carl quintanilla with jim cramer and david faber coming off the best day for the dow since march 5 and futures relatively steady as we await powell in front of the house this afternoon bitcoin down for a seventh straight day below 30,000 and lowest since january powell