good morning i'm carl quintanilla at the new york stock exchange. welcome to "squawk on the street." record closes for the s&p, the nasdaq, get some fresh legs. s&p needs about 11 points for a fresh intraday high. powell speaks, the market listens, why the fed chair isn't ready to sound the alarms on surging consumer prices just yet. >> plus, quote, rat poison what one-third of investors

think about crypto and no shot, no entry. one firm on wall street banning workers who do not get the covid vaccine. we'll talk about who that is jim, interesting tech rally in play microsoft with a $2 trillion market cap even as the house judiciary marks up some of these bills. >> house judiciary versus earnings per share, the june quarter going strong, raises from 310 to 325. >> high. >> people that will go for that and nay won't focus as much on congress apple with a very plaintive note saying listen, all the people, all the jobs we've created, we don't stifle competition i keep coming back to the notion while the congress is unified that these companies are not good, the companies themselves are -- as you used the term, i've been thinking about this all day, used it last night, there is a bit of a popularity contest in that congress thinks these companies do stifle small and medium-sized business.

but these companies, whether it be zuckerberg on shops, that is small and mediumsized, apple the same, alphabet, you know, youtube small and medium sized microsoft, no. >> not really. tim cook calling pelosi directly saying this can't go forward >> nancy pelosi is i think a very thoughtful person about these things and is trying to figure out what's right. david, you know this is not an easy question because if you can get in, if you have an app and it takes off, some of these outfits coming public that make your app more powerful, if you have an app and it takes off, you have a business. >> i know. it's funny when you think about splitting these companies -- by the way, this is not just from the left, also strangely from the right as well >> everybody but, i don't know -- >> perhaps makes it more of a dinger for some of these companies that it could get some

traction there you see apple talking about unimproved apps in terms of user base and sensitive data. but the breakup scenario, we've mentioned it many times, jim, where there could be a lot of value to create when you look at some of these companies if they were to actually have to break themselves up as a result of either legislation or the courts, which would take years to play out. >> speaker pelosi is sophisticated. i'd love for her to call in the show and talk about this >> she understands the breakup of amazon or alphabet? >> absolutely. >> on her plate, i don't know if she'd know the prevailing multiple for aws >> do not underestimate her ability to understand business she understands all these issues >> apple breakup is not quite as clear. >> you were just talking about the administration's stance towards taxes and how billionaires should start to

think -- lena kahn overseeing at least the mgm deal to start is going to make things interesting, wouldn't you say? >> it's how she came to prominence when she was at yale. she's had no tons of practicing attorney >> she's whip smart. if she thinks this -- she mad a lot of trouble >> no doubt that got attention not just because of her focus on amazon but the ftc and the doj doj, we still don't have an antitrust chief, by the way. l there's no full-time -- somebody approved by congress. it's important when it comes to m&a and it's not something that is passing a notice by many corporations or their advisers in terms of what they can or cannot do with significant time delay, if you want to call it that, on the antitrust review.

frankly, the last administration was unpredictable. >> do you think a guy like scott, eminent m&a lawyer, is thinking about this? >> i do. by the way, he's not an antitrust attorney >> no. an m&a guy he's pro trust >> right like many, looking potentially to do the deal, but, yeah, you've got to be thinking about this more on the level of the executives considering entering the large transaction. or even -- m gesgm -- >> i'm being fa sunny but -- >> if disney/fox can happen, why should there be a question >> there shouldn't be. in fact, the reason disney/fox could happen without a fight -- we could make arguments -- in part because they've created

studios out of nothing over a period of years. >> isn't that positive >> yes you would argue that enhanced competition, which is why you would let number one and two get together, which they did, right? or one and three maybe universal. >> we look at the inconsistencies. mgm, that doesn't hurt the consumer the call is about don't do see these deals. we don't want to see them. this administration is starting to become clearer. it's against stocks, against capital formation, against risk capital, it's against everything but chinese ipos they'll come around to that too. >> labor and not capital >> and that's been -- >> the balance completely out of whack for a long period of time. >> i think these guys are far more labor oriented than obama >> you just said that.

>> you said that on "squawk. i don't think anyone argues with -- amazon, union push in alabama. the president mentioned that completely unprovoked. >> teamsters >> now the teamsters going nationwide on amazon >> teamsters are tough they're a tough union. i never belonged >> would you have belonged to them >> i belong to one or two unions one i did a wildcat strike it was amazing fired the next day hotel and beverage in philadelphia wildcat strike hank aaron was in. let's teach them the boss a lesson the lesson was i was out of a job immediately. >> don't talk to me about atlanta. i went to the mets game last night. >> this was in 1972. >> oh. all right. >> speaking of the '70s, the feld chair yesterday on the hill talking about the threat of inflation, reiterating his stance that the price increases

we're seeing is transitory, says it's very unlikely we'll g back to 1970s' tilstyle inflation. >> you see extremely strong demand for labor, goods, services, and the supply side caught a little flat-footed and trying to catch up also, you have a central bank that's committed to price stability and has, you know, define kwhadwhat it is and has tools to keep us around 2 hearse inflation. all of those things suggest to me that an episode like what we saw in the 1970s -- and i graduated from college in 1975 i had a front-row seat -- that i don't expect anything like that to happen. >> princeton and georgetown. >> '75 >> others argue '80s style and '90s style weren't so great either >> no. look i don't know if you saw he was being berated by some congressmen. it was painful

this guy is trying to do his best i think he's right everyone's been caught flat-footed, whether it be the oil companies -- when you go to anybody, like no one can believe the amount of business that's being done it is roaring '20s and everybody's so busy laying off people can i explain, if you worked in a retail company, you became a prison guard and a therapist because retail has been so under fire if you go to a retail store and you're just angry immediately, a best buy, you can't hold me back from that store, we're only allowed to have so many people they didn't get into doing that, have a screaming match with someone about who wants to buy a speaker? >> or flight attendants and pilots >> they did not go in to be truant officers or therapists. but suddenly they have to do that they don't want to do that anymore. they have left that business

they're not coming back. >> i did go into best buy looking for something and it was behind a case -- >> did you throw a tantrum >> i did not at all. they told me it's out of stock just go online and buy it. it's like, okay, thanks. >> i guess the question, jim, as we look at -- we started the hour talking about the resumption of tech buying. >> yes >> is that because of powell >> yes >> because this delta variant is pushing epicenter names down a bit? >> i think it's powell he's given you the green light he's saying, look, i know it's going to be longer and hotter, but everybody will adjust. the one i keep coming back to is the chips, the semiconductors. there will be no semiconductor shortage by the end of q3. he's right you give them a chance to catch up if you're in the lennar poll, an amazing poll, they're going to catch up to housing. housing prices have gone up a

lot, but they're catching up to demand everybody's running 24/7 everywhere in this country and they're all trying to catch up >> digit times has a piece out this morning, chips are saying you'll get 30% more in the second half than we thought. >> and gm and ford will be huge stocks, especially since we've seen that plateau. >> the lead times, the gap between ordering a semiconductor and delivery increased by 17 days to 18 weeks from the previous month >> is it feature racism or related to high-performance computing? have you been following what's been going on in -- >> i challenge that. >> i know you do >> bad intel my intel is as of last night when is theirs >> i guess as of may >> it's june my intel is as of last night what are these people doing? how much are they paying

>> i don't know. >> how many divisions do they have >> i don't know. you love that. >> look, i think every single industry is dealing with -- the plastics guys are coming back on the rate -- the price in plastics coming back down because they'll ramp it up again. powell is right. people are trying to catch up. the beer makers -- >> you agree with powell's stance i like powell. >> about inflation for some time you have been in that camp >> i'm the only other one than maybe powell's wife who totally agrees with powell what's the matter? >> there are others. >> john williams, new york fed last night said supply and demand will adjust and if it adjusts dramatically, you might end up with deflation. >> thank you the spot prices will come down and the hoarders will be in trouble. david, this is not american

pickers. these are hooarders hoarding billions of dollars, especially the chinese. once it's feature rich -- >> discovery plus doing a new show on billionaire hoarders >> there we go that's the show. >> maybe at&t can do that. oh, they spun that off and took the dividend >> i'll talk to david. >> that was at&t >> i'm saying that show is going to be on discovery >> yes >> and i managed to work in the dividend cut >> by at&t >> gratuitous reference. >> correct and the wall of shame to remind everybody. >> when we come back, what one wall street firm is telling unvaccinated employees when it comes to covid and returning to the workplace. got some good calls this morning on microsoft, on verizon, carrier, netflix, and a look at futures. back in a moment

uno, dos, tres, cuatro! [sfx]: typing [music starts] [sfx]: happy screaming [music ends] if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity.

morgan stanley bar workers without vaccines will be removed. first real example we've had of a large employer saying you can't even come in

>> i think this is actually the first "wow" examples i think there are many companies doing this these guys hit the radar screen. when i was talking with some people involved with the bank yesterday and other banks, this is way it is this is it >> the banks, certainly when its comes to sales and trading and other areas where they do feel very strongly that people need to be together in the same space, david solomon at goldman has been outspoken, jamie diamond, and mr. morgan who runs morgan stanley as well saying a week ago, if you can go out to a restaurant, you can't cite a safety issue for coming -- not coming into work the larger question businesses are dealing with, fascinating from our perspective, as well, is where do you go there's the quote from mr. gorman

but the larger question for so many businesses, not just of course in financial services, is what are you going to do are you going to go with the hybrid approach? are you going to say you want your employees in full-time? most of the time, maybe a little bit of flexibility and who -- if you were to track similar businesses, one that went with five days a week and the other with hybrid, be very curious to see who would be more successful over a longer period of time. >> we don't know but a lot of companies whose ceos and people have not been vaccinated >> you mentioned that. >> we have to be careful that the banks in particular -- gary kelly, wow -- >> yeah. >> -- the banks are very much alone right now, but they are alive. >> jim mention what is you're seeing at the bottom of your screen, and that is that southwest has announced executive leadership plans that will involve gary kelly becoming executive chairman early next year longtime ceo

basically grew up at the airline. >> i wish he'd call in right now. i salute him so much this guy's been tested and tried and came out the other side. >> we always appreciate it when he joins us. 66 years old may stay on as long as 2026 as executive chairman >> really? >> that'shis desire to serve this-in that role until 2026 gary kelly giving up the ceo role but executive chairman, and we need to distinguish between that and the nonexecutive status of chairman of the boards, whose role really is to just run the boards so to speak in this case, he'll still have an executive function, similar to bezos, who will be executive chairman of amazon when he steps down as ceo a few days from now. >> the executive chairman can be down the hall, looking over your shoulder, critz icizing you. >> step do you think as ceo but he will still be with the

company for at least another five years >> robert jordan, 60 years old, first joined southwest in '88, has served in revenue accounting, comptroller, vp technology, strategy and technology, chief commercial officer, led the efforts for company's voluntary leave policy and early separation programs, which obviously were instrumental in keeping cash flow at a minimum during the pandemic phil lebeau joins us on this news i wonder what more you can tell us about kelly, his legacy, and jordan himself >> let's start with jordan you hit on all the roles that he's played at southwest airlines i look at this move and look at it as complete gary kelly, complete southwest airlines transition, make it smooth, make it uneventful. you know exactly -- if you were an executive at southwest, you know exactly what you're getting with robert jordan

i am not surprised by him moving into the top job and yoi don't expect any bumps along the way for that transition. gary kelly, you hit on it, this is one of the true all-stars in terms of the airline industry in his career and he's had the vision for expanding and growing southwest airlines as the ceo, and he's done it in a very deliberate gary kelly style and now you look at these guys and you no longer hear people say, well, southwest airlines is a low-cost carrier nobody looks at southwest airlines that way. somebody who's trying to throw out cheap flights. those days are long gone gary kelly was instrumental in making them as large and as successful and as profitable as they have become >> you know, phil, i am kind of struck at the age of jordan. i mean, a lot of times these people will move on to other

places because they don't get the top job. i wonder is there any thought he might have left if he didn't get the job? >> i've not heard that but i'm not surprised that -- it's a very southwest way if that makes sense, jim. you know gary kelly and people at southwest this is not the type of an airline or a company where the person who had a number of jobs is saying, hey, i need to be the top guy and if i'm not the top guy, i'm going to leave. i don't need you anymore that's just not in the dna they are extremely consistent in terms of what you see from their executives, how they conduct themselves, how they operate the airline. you talk about a company where everybody's on the same page, that's southwest airlines. >> your piece today, phil, and yesterday, the outrageous behavior of people, which is

really just groundbreaking everyone should read it -- watch it is there a way to determine some are better than others i have to believe southwest has been trained how to handle this. that's the kind of thing they know how to do >> i think everybody is doing the best they can, jim i don't look at this and in terms of one airline is not handling it better than others i think the bottom line is this -- when we talk with the head of the faa this morning on "squawk box," they're fetdd up with what is happening here. and think about this -- you know that if you go off and pop a flight attendant in the mouth you're going to get fined $35,000, and that's not enough to deter people, well, then the next step needs to be taken. what is that next step the no-fly list run by the fbi is for people who are terrorists that's not really a good tool to be used. and the airline needs to step together and say, okay, how do we deal with these people who are yahoos and are way out of control?

>> well, one thing is to show the videos that phil did fantastic work, phil as always. fantastic. >> phil, i guess the only other remaining question -- >> thank you >> -- would be -- and i can't imagine the answer is yes, but would we be ok the loonout for any kind of structural, strategic shift under jordan, whether that's more emphasis on international, there's been hawaii, been pretty aggressive moving into some markets like o'hare versus midway in chicago. but would you be tuned to that or not >> i don't think there's going to be major structural shifts. if you look at the expansion of southwest over the last 15 years, it's been very gradual. they will throw out little bread crumbs i say where they'll hint at something but it will be years before they finally make the full move. look at what they did with hawaii they talked about it for a long time before they finally made the full move. look at their expansion into

airports like o'hare for a long time, gary kelly said i wouldn't mind being in o'hare. they waited until it was the right time and the right opportunity. i expect the same strategy and approach under robert jordan >> not to mention guiding through the max issue, which became very intense for kelly for sure >> he's a case study everyone should study everything he's done. a masterful man. >> phil, thanks for that, backing us up on this news that gary kelly will become executive chair of southwest next year

that building you're trying to buy, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast. if i could, i'd ten-x everything. like... uh... these salads. or these sandwiches... ten-x does the same thing, but with buildings. sweet. oh no, he wasn't... oh, actually... that looks pretty good. see it. want it. ten-x it. yum!

we have committed to sales growing more than 5%, profit growth more than 20% between now and 2026 and set a mission for 33 billion pounds worth of

sales. >> that was the ceo of gsk, glaxosmithkline. >> i think what people need to know is that was better than -- people thought it was more in jeopardy people might have said how can a stock go up with a dividend cut? the answer is she allayed a lot of fears and the targets she's picking are very aggressive. i have to feel that it's gone from being a stock that has not done, mch to being a stock where people might be saying, you know what, i have another shot to make money here. i applaud what she's doing making it this far, that's good stuff. >> they'll prioritize r&d and commercial investment in vaccines and specialty medicines. they're very good at vaccines they did not do -- they did not get the -- going back and forth.

like the also ran, also ran, also ran covid vaccine and will it be needed but there are 7 billion people in the world so maybe we can take whatever we can get >> those cheers, carl, are not being piped in those cheers are real. >> the loudest it's been in a long time. [ bell ] let's get the opening bell celebrating ipos we'll talk to a ceo at 11:00 a.m. the nasdaq also celebrating ipo the screening and verification company first advantage. >> they're not waving stibs and they're not trying to get us to miss free throws although with ben simmons, you wouldn't have to worry you didn't need anything he missed it on his own right. >> gsk >> csm >> it reminds me, goldman does

take it to conviction by today, target 141, 24% upside they say one of the biggest laggards in our coverage >> that's a great buy. i completely agree with that i saw that in the conviction bias it's time. that is one that should not fall behind very good expense control. a lot of good notes today. fed ex, barclays raised numbers on the eve of the reporting, which matters tremendously united rentals, very solid note by citi, hold to buy that was an infrastructure play, supposed to be the one that went the opposite way was plug power you own that because it's hydrogen revenues in line, losses wider price target goes from $69 to $31. obviously, they believe too great, right and when i say that stuff and get that kind of reaction, i know that i'm a crowd favorite

>> you often are, jim. you often are. >> speaking of calls, jim, ncd, welles goes to 268 the loyalty program news yesterday, you've been calling for that for years >> you convinced me. he's a tough customer. he's going to get it done. that note with wells is about the rapid reopening story and the customers are responding to the rapid reopening loyalty. i think that stock is way too cheap. they went from 262 to 248. that's kind of a line in the sand this stock has not done enough versus how great he is i think he has the support of the franchises >> that's been a key challenge for the many ceos we've covered over the years, is getting that sort of wily group to agree. >> that wily group i'm friends with someone who has 18 of them apparently they don't like him they tell you if they like him, they love him. >> energy is the one that continues to bounce around

a lot of it lately is about the iranian nuclear deal, whether we're in a true final push we did get to 74 this morning. >> only 13 rigs added recently people -- i think there is a sense, david, that the era of willy-nilly drilling and with president trump and the era of being a good citizen began with what we still -- i continue to say don't talk about it enough, which is the engine one reversal of john d. rockefeller >> standard oil being exxon, exxon being -- >> what tkr couldn't do. >> it was a seminal moment there's still an argument, so the professional circles around activism as to whether it was there in specific or talking about that proxy play, whether you can expect on the big index

funds will always side now with the esg proponents something on a proxy i don't know the answer because there was a lot of frustration with that sun mobile specifically, jim. you know that. for years. that may have shown itself in the way that -- >> they ran the companies and said, look, here's the way it will be for us i hear there might be another one, another challenge >> another challenge to another company. they've started an etf >> oh. >> they're starting a -- >> did you hear about the -- >> i don't want to -- >> did you hear about the "squawk on the street" etf we are about justice >> are we? >> there's a justice etf >> is there? >> yeah. >> got it. >> we're calling it the shazam right? >> by the way, spacs, we'll have the ceo from bart trucks

>> oh, my gosh spacs. >> that music gets me every time mgab bark trucks. we'll be joined by alex rodriguez. 25 years old >> yeah. >> not a-rod the baseball player talking about this guy this guy that kid he's doing it all. one of the larger deals we've seen >> chinese did a truck deal yesterday, nobody cared. fortune. >> this is long-run trucks that will eventually be fully automated running but -- >> right >> and their software, you can buy the truck, then they get the service fee, subscription fee, and they obviously reduce your overall cost we'll talk more about that meanwhile, the spac behind it, right there.

>> big players cnh. he is very happy with what nickola has done >> really. >> very happy. the trucks are here, they're working. there's a big registration >> more planned hydrogen and on the stations the stock is moving. >> there are two other players here >> i did think that scott wine saying he was very skeptical coming in, thinking they should don't a deal because they had a truck that didn't really move on its own power. that was mentioned by scott. but he is endorsing them saying it's for real. they have stock for sale he's moving the stock by saying he's checked it out, one straight shooter and says nicola is the real deal truckwise >> a taste of what he told you last night on "mad money." >> yes >> i came into this job for skeptical of that partnership

and i have been proven completely wrong about my skepticism they're a very strong partner for us and we're excited what we can do with the first battle of the electric products but hydrogen down the road >> ambassador, jim, speaking of trucks and cars, tesla, above the 50-day, for the first time since early may. back to 643. >> i think tesla is -- remember, when tesla works, you get the juices going, cathy wood, we haven't talked to her lately, big tesla. tesla bulls when they get in charge, the animal spirits roar in this market >> that stock has been making quite a bit of a comeback. >> there's some video. >> woodstock >> this is the woodstock >> kathy woodstock >> this algorithm that hears words you say and rolls the video. >> the spac thing too. that music, whatever that sound

is -- >> the buzz. that etf buzz. >> yeah. but there's woodstock and yes, we're talking about cathie wood-stocks. >> half a million strong >> more than that. >> that was the song >> oh, sorry it's hard to keep up >> whose farm was it >> max thank you. >> not bad not in the form of a question but we'll take it. >> no. >> that's true single "jeopardy!" we take it, but in the second -- you don't warn them, first you do, not second you just wait. >> you're going to leetch us are you going to leave us? >> august 2nd. >> aaron rodgers is going to quit green bay if he gets it will david faber quick "squawk on the street" if he gets it >> i will do both. i'll figure out a way. >> david faber being a host in favor of being probably the person who has watched more gem ar di than these other people who have come in

>> certainly did before i hosted, yes. watched a lot. netflix, thank you >> netflix did you see that note? >> i was going to bring this up. need ham arguing they should have an ad like tear basically your argument is the fact they don't and swear they never will opens up a lane for their rivals to fund themselves better >> stance on that, truly disruptive, lowers the return on capital they have. david, the best line here is that they are funding their competitors because the competitor's cpms go up. the amount of time people watched netflix was extraordinary in that piece. >> it depends on how you slice it, but you could argue 40% of view time somehow going to netflix. >> it's amazing. >> bosh. we mentioned that yesterday. >> that's amazon

>> watching "line of duty. it bothers me. there's an uproar in philadelphia that people are going to the houses in wallingford, delaware, to see where mare was >> that's hbo max. >> where is that going >> that's going to the home of billionaire hoarders >> discovery >> discloovery plus >> at&t dividends? >> oh, my lord everything leads back to that. what a seminal moment that was in your mind >> glaxosmithkline, emma gave you a better than expected dividend at&t is moving up. now it's starting to soar. by the way, see the viacom note this morning viacom cast citi as a positive catalyst watch that's everybody bit as good from the csi from the evidence lab. they're saying there will be an upside surprise in viacom's

numbers. >> up 10% for the year, not the 100%-plus it was up. >> verizon verizon. >> your point is good in that we're starting to see more calls about upside epfs. >> yes this is the great reopening. everyone is doing more of what they're doing. people are drinking more no kidding try getting a table at a restaurant >> i was drinking more during the pandemic now i'm trying to not drink as much now that we're back out there. w >> we'll see what the law firms do that stay close to us >> a big drinking dinner in our future >> and we bet br softer the way we talk because i don't want to get in trouble with the restaurant >> masa, the stock not moving but they had their annual meeting. talked about buybacks and how important rothschilds were in terms of funding the industrial

revolution to some extent and that he sort of is in that position now with the information revolution just wanted to quickly share that >> they near a lot of the ipos that people don't talk about >> yes, they are >> people don't talk about it enough you do >> they've had a very good -- overall despite the fiasco, good move >> great-looking tie >> thank you >> the tie-shirt combo >> you're usually not generous with your praise >> no. >> you once said his suit jacket was flammable retardant or something. >> something i was afraid of >> i had to put that back in the lab. >> i had no fire extinguisher. you have to have one for some of david's -- they come with it has a fire extinguisher. >> take a look at treasuries treasuries this morning as we await manufacturing and services pmi do out in a couple moments take a look at yields and oil as well

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, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. ♪ ♪ ♪

rick santelli here i.t., composite pmis, 62.6 services at 64.8, does not usurp 78.4 and 63.9 for the composite doesn't take out our last look at 67.7. these numbers indeed are a little lighter than expected, but do understand whether it's supply chain issues or just the benefits holding people back from a full reopening, especially on the services side, we are seeing the reopening progress but maybe not as healthy as it could be keep a close eye on 1.46% on

ten-year note yields, yesterday's low yield, and $61 billion in five-year notes on the auction at 1:00 eastern. tu aerhe m wl street"il rernft tseessages.

warren buffett owns shares worth about $100 billion he says$1 billion. he's resigning as a trustee of the bill and melinda gates foundation offered support for the foundation's current leadership. more interesting, jim, is his quote here saying these remarks are no swan song i still relish being on the field and carrying the ball. but i'm clearly playing in a game that for me has moved past the fourth quarter and into overtime >> look, i think that in terms of the bill and melinda gates foundation, there are a lot of foundations that don't -- that are concerned that some of bill gates' behavior has made it so they're not sure they want to be affiliated >> yeah. >> i mean, i don't mean to step

on toes here, but that's what i understand >> right here's buffett on that donation. you know, interestingly, he's talking about the tax savings. he goes into, of course, the way charitable giving has treated the tax code also, points out that if he hadn't given money yet, in other words, the money -- half the -- the $40 billion would have been $100 billion if it had just stayed in berkshire, but he started giving after his wife passed away. >> propublica, everybody was mentioned looked terrible, and yet there are, as we go billionaire by billionaire, we see there are carry forwards, the reasons why they paid so little not nuanced enough, but you got it >> there it is where he talks about, it's very important, but he goes on to say, there are perhaps congress should periodically revisit the tax policy for charitable

contributions. particularly in respect to donors who, you see it right there at the end, get, quote, imaginative. >> i said that two weeks ago, and everyone said billionaires ganged up on me and billionaire representatives. he says it, he says it, billionaires going to gang up on him? >> no, he's warraen buffett >> about seven points for a fresh high >> we're right near a new high, but where's the new high the only big cap is microsoft. a testimony to how much the market has been advancing and rotating around that you don't have a lot of individual new highs on the s&p 500 modest moves up this morning on some of the reopening trades here energy, banks, industrials were modestly on the upside at the open tech was lagging the one big mover today we saw was energy stocks which was just off a new high here. one thing that's definitely moving and even though it doesn't look like it on a daily basis, the momentum is behind

thematic tech. cathy woods arc funds, cloud computing, fintech, internet stocks there's some of the etfs around these. these are straight up, and i mean straight up, for the last month. the line is just like that every day, you're up half a percent or so and that amounts to really big moves over a period of a month here strange new etf, david mentioned it quickly here, but i want to bring it up here engine number one, the people who had the big exxon fight and won. starting an etf today. transform 500 etf, vote, they'll own a broad sector of large cap stocks very strange etf most of these companies seem to go out and buy stuff that supports their point of view they're just buying large cap stocks bah they want enough stock to participate in the proxy voting that's the key, but they're not making bets. this just want to influence it down the road. they're going to seek to the fluence shareholder votes on climate change, on esg, and on individuals and how they interact with their companies. going to be a very interesting

idea here's the idea, it's a little controversial because they're going to need to bring in all of the other big index providers, the big guys who control the real votes here. the vanguards of the world, the black rocks, the state street. morning star had a great article a little while ago saying those three together hold 43% of the fund industry's equity assets and the votes, so can they corral those people, can they essentially be a lobbying organization to bring them in? it works for exxon it's not clear it's going to work here, and they're going to get pushback from a lot of people feel that's a little too much power in the hands of a smaller group. remember, there have been people slinging mud at index providers for a long time. meanwhile, gary gensler at the s.e.c., speaking of climate change this morning. talking about, giving a speech talking about more disclosure on climate change, their public comment period he had has concluded. he's starting to show his hand, starting to talk about disclosures around, for example, greenhouse gas emissions and forward looking climate

chitments. said we're going to try to hit targets. they want more disclosures on that you're going to see a lot more rule making and efforts to get disclosure out of companies in the coming months out of the s.e.c., and we'll keep an eye on all of that. it's starting to heat up the intersection here between climate change, esg, etfs, activist investing, that's why this particular etf is attracting a lot of attention. carl >> a good way to sum it all up, bob. thanks, bob pisani >> with the down dow 35, let's get to jim >> there are people who don't like way box is being run. we'll talk about that, and then i want to talk about a company, it's very controversial, a meme stock. 36% of the company is shorted. there's a big rebalancing on friday and this is the type of stock that could get a huge buy out of the russell imbalance, so i think the shorts are going to be under pressure in the next couple days. perhaps it's unwise to be as

short as you are going into a rebalancing where there may be a lot of stock that has to be bought clover health, a spac that many of us are familiar with. >> we never really got to bitcoin's bounce either, after getting to 28,800. 20% from yesterday's low >> cathie wood has been a buyer of the bitcoin fund. i think microstrategy seems a little overvalued, but people are going to be playing that one. i'm in ethereum. ethereum is my game. >> you have been saying that >> still i thought you sold most of it? >> i sold my bitcoin now i'm buying ethereum. ethereum, you want to be involved in that world, you have to -- you can't come to a gun fight with bitcoin have to come with ethereum >> i'll keep that in mind if i ever encounter a gun fight >> i'll pay you one ethereum for that outfit you're wearing >> really? >> is that a good deal

>> a good deal >> let me check. >> we'll see you tonight "mad money," 6:00 p.m. eastern time take a look at the dow, down about 20, but s&p hanging on to a 3, 4-point gain. don't go away. at cdw, we get your it staff has be ready to take on new challenges. that's why we built an office obstacle course ... to prepare our people for anything. you're late well, cdw amplified services experts will consult with you to design, orchestrate and manage your most complex technologies

to help you quickly overcome any obstacle ... without all of this. oh, that is better. who's that? oh, if you want coffee, you gotta get past tantrum. you're in for a brewed awakening. for technology that moves you forward, trust cdw amplified services my nerve discomfort was really bad. i have three flights of steps to go down in the morning... i was having a lot of nerve discomfort in my hands... picking up a jar of sauce and just dropping it! used to play my guitar every other day at least. i played for like a half hour, even 15 minutes,

i'd feel little aches right here. introducing nervive nerve relief, from the world's number 1 selling nerve care company. nervive relieves occasional nerve aches, weakness and discomfort. i was quite surprised by how quickly it started to work. i feel so much better. as we age, natural changes to our nerves occur, which can lead to occasional discomfort. nervive has b-complex vitamins that nourish nerves, build nerve insulation... and enhance nerve communication. and alpha-lipoic acid to relieve occasional nerve aches, weakness and discomfort. i ended up playing for six hours straight. i'm able to have the strength to not drop things on the floor. my mornings are much better! experience nerve relief with nervive.

good wednesday morning welcome to another hour of "squawk on the street. i'm carl quintanilla with mike santeea. dow is relatively flat, but the s&p only about three or four points away from a fresh record high microsoft at an all-time high. the pmis run hot, and we have new existing home data let's get to rick santelli >> yes, yes, the markets were definitely not too hot, and new home sales are even cooler 769,000 seasonally adjusted annualized units that's down about 100,000 from what we were expected but we had an idea this would happen. permits last look were 1.683 million. that was down 50,000 from the previous month, and not only

that, there's a revision last month's 863,000 on new home sales gets downgraded to 817,000, and that's 779,000 becomes the lowest annualized unit since may when we were just a whisker above 700,000. this number represents a drop of close to 6%, and to really understand whether it's cost, low inventories, construction, labor issues, let's turn to diana olick. your thoughts on this number >> rick, it was the first one. cost the median price of a new home sold in may, $374,400. that is up 18% year over year, and that's what we have been hearing from the builders in the last couple months in their earnings reports, is they are jacking up prices to cover their higher costs for land, labor, and of course, materials even though lumber came back a little bit, it's still more than twice the price it was a year ago. the supply of new homes for sale rose to a 5.1 month supply, just so you know, six months is

considering basically a balance between buyer and seller we had been down in the four-month range this all comes down to affordability. you can't even blame mortgage rates because they came down sharply in april, and in may, these numbers are based on signed kraekts, so peep out shopping in may, in may, rates were low and stayed within a very narrow range, so it is that affordability issue really hitting sales, and you see it in that much larger than expected drop in the new home sales mike, back to you. >> diana, thank you very much. we are 32 minutes into the trading session. here are the big three movers we're watching this morning. starting with glaxosmithkline moving higher after detailing plans to spin out its consumer health care business into a separate company they would receive an $11 billion payment from the new company. plus, watch microsoft, becoming the second company to surpass $2 trillion in market value apple, of course, was the first. now, sitting at a market cap of $2.2 trillion. and we will end with carrier,

deutsche bank initiating coverage on that stock with a buy rating, saying the equipment maker is poised to benefit from its exposure to nonresidential construct as well as an emphasis on indoor air quality. that stock flat now. >> turning to tech this morning, we're watching the nasdaq notching a new record high in today's trade, as house judiciary is getting set to vote on a package of six antitrust bills including several targeting the market power of big tech ylan maui has more on that >> well, good morning there, carl the showdown is starting the committee is taking up those six bills. they all have bipartisan support, and together, they have the potential to topple america's tech titans. the legislation applies to companies with a market cap of $600 billion or more, and 50 million u.s. users or those that serve 100,000 businesses a month. only a handful of companies actually meet all of those criteria, and they're apple,

microsoft, amazon, alphabet, and facebook and they are fighting back, just take a look at how much they spent on lobbying in 2020 alone. and it's clear that big tech has some deep pockets. facebook tops the list at $19.7 million. amazon is second at $17.9 million. the others are also well into the seven figures, and we know they spend even more on lobbying in the first quarter of this year but the congressman who is leading this effort, democratic representative david cicilline, told us america is having a monopoly moment, and that's bringing together lawmakers from both sides of the aisle. he said, quote, our bills will build a stronger online economy where more small businesses can compete against giants like amazon and google. consumers have more choice, and all of this benefit from increased innovation the legislation would be on discrimination and self-preferencing. it would create new standards for acquisitions draw bright lines between

different parts of businesses and even raise merger fees the white house is watching all of this movement closely as well, and officials said that president biden is encouraged by the bipartisan work. back over to you >> okay, i want you to stay with us as well i want to bring deirdre bosa into the conversation. interesting, of course, we made this point earlier as well and ylan just said it, a bipartisan effort to a certain extent, which is very surprising overall when you look at congress and then, you know, there's the investor perspective if it were to come to pass, i mean, you cover these companies very closely there are many who would argue amazon broken up might be worth more than amazon together, given simply the value of aws alone, and you could go down a similar road for alphabet. >> yeah, all you have to do is look at the share prices, and it may be that investors are being a little complacent here, which is what those on the antitrust side would argue but you know, the pressure is certainly building i think it was called a monopoly

moment that ylan just mentioned. as this gets closer, it has to pass more hurdles. does that continue we know that some members of the house judiciary are looking at monitoring different things or regulating different things such as hate speech on platforms or censorship, as they might call it, on platforms like facebook and youtube. key here is that even if this is a really long way off, and we talk about this often, does this amount to a distraction for a lot of these companies we might not see the big bang moment when everything comes to fruition and the possibility of a breakup is a lot nearer, but as they continue down these paths, as the pressure builds, does it distract them from innovation and their core businesses, and remember, too, we have to look inside these companies and the cracks are showing there, especially when we talk about labor issues when it comes to google in terms of its white collar workers, its executives, and amazon with its warehouse workers. >> yeah. well, ylan, of course, as we look at the stocks themselves, not much of a reaction

and there often isn't when the doj initiated action, where the ftc, and we can see it right there against these various companies, not much of a move. but to get back to you in terms of the likelihood and/or the path that would need to be followed for this to be a reality, can you give us a sense as to what we're talking about >> yes, so there are really two issues here. one is where does this land as a priority for congress right now? all of the talk on capitol hill is focused on infrastructure, it's focused on voting rights, focused on police reform not really focused on antitrust right now, but what congressman cicilline is trying to do is build that coalition, broaden it out between some of the most progressive and even some of the most conservative members of the republican party, so that when this is ripe, there is enough support for it to actually move. this still has to not just pass committee, we're expecting this markup to last well into the evening, but also get on the house floor, and "the new york

times" has art reported apple's ceo has reached out to house speaker nancy pelosi to lobby against this and say congress needs to pump the brakes the bills are not ready for primetime. we reached out to pelosi's office to try to confirm that as we have not heard back yet. it shows you, you know, where this lies in terms of the priority for the companies, even if congress is still sort of getting its act together and figuring out what is the legislative path forward >> right that's the fascinating question, ylan, and deirdre, i wonder what you make of both the revelation of tim cook's call to pelosi, even the u.s. chamber talking about how some of these measures could wind up lessening competitiveness. do we believe that big techtech is facing this with a unified front and is it enough of a distraction to take the eye off the ball of their current businesses >> i think that reporting was really a key moment. the fact that tim cook picked up the phone and had to call speaker pelosi either tells us

that the getting really realfo these tech giants, it also tells us that perhaps was apple a little complacent here it feels like last year when we covered this, it was all about google and facebook when we watched the congressional hearings it was sundar pichai and mark zuckerberg getting most of the questions while tim cook was able to sit back when he was asked a question, run out the clock, but the scrutiny that the app store has been under this year, especially over the last few months, i think has marked a real turning point. do they provide a unified front? absolutely not you have got apple and facebook fighting each other. and just getting more ammunition, the more information that comes out of these investigations and these hearings so that is another element that's going to make it more difficult but perhaps what it comes down to, though, and we have been talking about this this morning, what do users want they're into the idea of big tech regulation, but when it comes down to it, if it's going to affect the products and services they use, every single day, more so than ever after the digital transformation of the

pandemic, how much do they want regulation then and that becomes a different story. will this actually make it across the finish line what do users want these are key aspects as well. >> we'll watch it, certainly not having an outsized effect on price action today thanks, guys all right, bitcoin now back above $30,000, following a choppy session spurred by headlines out of china calling for increased crackdowns on mining our next guest says china is the boy who cried wolf and the country is forever banning bitcoin. joining us now, jill carlson, also a member of the world economic forum's global future council on cryptocurrencies. good morning good to have you weigh in on this i wonder, is china the boy or the wolf in this situation or maybe in a sense both, because right now, what china is doing on the mining side does seem to be having an effect in terms of reduced intensity of mining activity. obs obsiously, we saw the price

impact what's the connection between what china is doing right now, the price action in bitcoin, what it might mean in the longer term >> thanks for having me back i think china is certainly the boy, the boy who cried wolf, but the reality is the wolf showed up this time you know, china is constantly coming out with these headlines that they're banning bitcoin this has been happening since 2013, 2014 those of us who work in the industry are very accustomed to these headlines. they don't usually scare us. but the reality is that this time, china seems to be very real about this. and they are -- they do seem to be enforcing this action what that means in the short term is this is going to weigh on the bitcoin price right? you have miners, you have financial institutions, traders, other players in china unable to participate in these markets right now in the same way they usually do in some cases, probably being forced to liquidate some of their treasuries and their holdings

that's going to weigh on the market however, in the long term, this isn't necessarily a bad thing for bitcoin. moving some of the hash power and the mining power offshore from china is actually great for bitcoin's diversification underlying security. >> right, so longer term perhaps, if you do have the mining activity more distributed across the world, it maybe increases the value proposition as it's a decentralized asset. i think it's interesting to get at the causal links if there are any in the short term between how much is mined, how much is being used in terms of actual transactions, or used in building technology, and how much of it is just kind of being bought as digital gold, it's speculative run-up, because presumably, when bitcoin went from $10,000 to $60,000 in a few months, there was not a 500% increase in the real-world usage of this stuff. there isn't necessarily a one to one relationship in terms of

price. >> so there was a dramatic increase in terms of transaction volume on chain over that same period that you're talking about, over that bull run. and look, we have retraced on many fronts, we have retraced in terms of price we retraced in terms of that on-chain transaction volume, both in bitcoin and in ethereum and other coins. but we also need to put this in context. we're largely where we were at the beginning of the year. and you know, you point out that 500% run-up over the course of i think five months. you don't get that kind of rally without also getting a little bit of volatility along the way. and that's certainly what we have been seeing this week >> sure. and you know, there is a way to frame the volatility as, you know, a trillion dollars in value on paper, so to speak, went away, and there hasn't necessarily been a lot of dislocation in the markets or other kind of spillover into other asset classes, i guess you could say.

what do you think it does mean for maybe some of the secondary coins? has this been a real moment of truth for what's real and what's not? >> yeah, i mean, i think it's been interesting to see the bifurcation of bitcoin really underperforming a lot of the market here. to me, that indicates a lot of this is isolated to the china ban and specifically to some of the flows that are happening, probably outflows, right from miners and so forth who are being forced to liquidate over there. and to me, that tends to indicate that this is a bit more contained. that said, of course, we have seen other coins retrace, you know, people are throwing around this billion dollar or trillion dollar, excuse me, number of the crypto market cap retracing. i mean, it's important to remember that $70 billion of that was in dogecoin alone right? so you know, again, that indicates that a lot of this is also being retail driven, a lot of this is being driven by

weaker hands and according to recent onchain data, it's now starting to look like longer term holders are starting to come in and accumulate at these types of levels so that's cause for hope, as more of the bitcoin specifically, but crypto supply in general rotates into stronger hands. >> jill, you know, we keep hearing about central bank digital currency today, it's vis has a big piece, and they say by now it's clear that cryptocurrencies are speculative assets rather than money. bitcoin in particular has few redeeming public interest attributes i guess i wonder to the degree that central banks get more vocal about this, is that legitimizing or destabilizing for the crypto community >> again, i mean, this is something thatthe crypto community is very accustomed to. it's no surprise to see central banks talking their own book you know, just a few years ago, the big headline was about jamie dimon talking his own book with regards to all of this

technology and i think it was just yesterday, right, that the headline was goldman sachs settling a transaction on jpmorgan's blockchain. so these things come and go. it's, again, it's no surprise to see the likes of the vis coming out with this sort of statement. >> not saying it's a surprise by any means but certainly something that we have all got to consider as this debate goes on jill, appreciate it. thanks >> thank you we'll take a break here. a look at the road map for the rest of the hour, starting with buffett donating more of his billions and resigning as a trustee of the gates foundation. >> plus, a closer look at the airlines as southwest's ceo gary kelly announces his plans to step down next year. >> anden exclusive of the ceo of the self-driving trucking company embark, going public in a ac dspeal. "squawk on the street" coming right back

i think you're going to like it here. umm, why is 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 for a changing world.

♪ so, we're up against dom's brother? he's got his own private army. we need help. no way. nice clubhouse. so, how do you want to play this? fast. ♪ hallelujah. hallelujah. ♪ ♪ ♪ yeah! -it's good to be back.

the oracle of omaha has officially donated half of his wealth, announcing a new multi-billion donation this morning and stepping down as a trustee from the bill and melinda gates foundation robert frank has all of the details for us on this and taxes and so many other things that you cover for us, robert >> good morning, david a lot on taxes here.

really interesting warren buffett announcing a $4 billion gift to charity. that brings him halfway to that goal of his of giving away more than 99% of his wealth he also defended his use of the charitable deduction that, according to a propublica article, helped him lower his overall tax rate he says he's received only 40 cents of tax savings for every $1,000 of giving he said tax deductions are important to many, particularly the superrich who give large amounts of cash or securities to philanthropy it is fitting that congress periodically revisits the tax policy for charitable crip contribution, particularly in respect to donors who get, quote, imaginative americans give over $450 billion to charitably every year, in large part because of that charitable deduction but buffett's comments will add to growing calls among democrats in congress to limit deductions

for the wealthy. before the pandemic, taxpayers could only deduct up to 60% of their income with charitable gifts. that was raised to 100% during the pandemic it extended it through 2021, but there is growing pressure to let that expire. now, biden's tax plan would eliminate the step-up in basis for appreciated assets but it would not apply to assets given to charity, which would still be exempt from a capital gains tax. we'll see whether these comments and this growing attention will change that. back to you. >> robert, you were part of an interesting debate at the end of "squawk box" as well i think jim was a part of it, too, and andrew had plenty but you know, a lot of this also goes back to the propublica stories you mentioned, not just charitable giving but of course this perhaps i don't want to -- action by the very wealthy to take loans off of their stock

portfolios that then the interest obviously is tax deductible theyerant earning any income very much unclear, certainly reflected in that debate you were part of as to what roads can actually be gone down that will sort of create more so-called fairness >> yeah, that will create more fairness, but also not have unintended consequences. remember, the charitable deduction, which is one of the big reasons jeff bezos, warrant buffet, soros, carl icahn had so low income tax rates, which is how we tax in america, not wealth, the charitable deduction has been around for over 100 years. there are limits, at least before and hopefully after the pandemic, on what you can deduct and you know, remember, millions of americans give to charitably every year that's one reason the u.s. is such a charitable country. no other country has the same tax policy i think the question will be, yes, you can target the income

tax rate that the very wealthy pay relative to the wealth, but will that limit overall giving by americans which again, makes america so exceptional relative to the rest of the world >> yeah, great point we are by far, i think, the most charitable robert, thank you. all right, as we head to a break, take a look at clover health stock jumping again today after yesterday's 12% gain as the meme trade appears to take hold on the stock once more it's up about 10% right now. though still at about half of its peak price less than an hour into trading and it's already traded more than 80% of its 30-day average 'lbeig bk. wel rhtac stay with us - [announcer] dearest smoke shacks, defenders of the dry rub.

thank you for giving your all to a 20-pound hunk of brisket. whatever you serve, we'll proudly deliver it. (bike rattling) (pleasant piano music) ♪ ♪ when technology is easier to use... ♪ barriers don't stand a chance. ♪

that's why we'll stop at nothing to deliver our technology as-a-service. ♪ - [announcer] when you earn a degree to defrom southern newogy hampshire university, it's worth getting loud... - woo! i did it! (people cheering) - [announcer] ...and emotional. - [woman]woo hoo! - cool! - [man] we're proud of you, right, trav? - yeah! - [announcer] snhu graduates recognize what they can accomplish with a supportive university by their side. - i did it... you can too! - [announcer] start your celebration at snhu.edu [grunts] [grunts] pnc bank believes that if a pair of goggles can help your backhand get better ...then your bank should help you budget even better. virtual wallet® is so much more than a checking account. its low cash mode feature gives you

at least 24 hours of extra time to help you avoid an overdraft fee. you see that? virtual wallet® with low cash mode from pnc bank. one way we're making a difference. time now for our etf spotlight. dom chu is taking a look at the tech sector, rallying once again in today's morning trade >> absolutely. that's despite a kind of wavering between positive and negative territory so far this morning. we have this record intraday high for the technology sector spider, xlk, which is also tracking for its sixth straight

weekly gain. that would be the longest weekly win streak since going back to january. so among the names fueling that group higher in recent weeks, we have a range of these large mega cap names like adobe, service now cloud services, paypal, fintech, but today, the chip stocks are leading technology, including bigger gains in companies like micron, western digital, and applied as well, which are some of tech's biggest laggards so far in june. one of the e ttfs that tracks those things is still trading around 3% shy of its february 16th record highs because names like intel and micron and universal display have lagged over that span, maybe three months or so intel is, by the way, down more than 10% during that period as well there are outsized gains, nvidia, of course, up 45% in three months, pacing for its best monthly performance since august also asml holdings, among the

outperformers in recent months technology a big name for, but of course, the subsectors or industries like semi-conductors that are driving a lot of the action back over to you guys. >> a great breakdown, dom. thanks so much >> meantime, amazon's prime day event was a hit, and not just for amazon online retail sales for all sellers, $11 billion, according to a new report from adobe analytics. that's up 6.1% from the last prime day event held last october. online sales were $5.6 billion on day one, $5.4 billion on one day. the record held by last year's cyber monday as $10.9 billion, coere monitor the degree e-mmce holds on post pandemic don't go away. folks the world's first fully autonomous vehicle is almost at the finish line

today we're going to fine tune the dynamic braking system whoo, what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq 100 like you you don't have to be a deep learning engineer to help make the world a smarter place does this come in blue? become an agent of innovation with invesco qqq nobody builds 5g like verizon builds 5g because we're the engineers does this come in blue? who built the most reliable network in america. thousands of smarter towers, with the 5g coverage you need. broader spectrum for faster 5g speeds. next-generation servers with superior network reliability. because the more you do with 5g, the more your network matters. it's us...pushing us. it's verizon...vs verizon. and who wins? you.

welcome back here is your cnbc news update. russia says it fired warning shots and dropped bombs in the path of a british warship for traveling in what it considers russian water near crimea, the area of ukraine that russia annexed. they said the ship was not targeted and that the shots fired were part of a previously announced russian military exercise >> hong kong's last remaining pro-democracy newspaper will publish its last edition tomorrow before ceasing print and digital operations last week, the government froze apple daily's assets and arresting the editor as a crackdown on dissent in the city back in the states, 153 employees at houston methodist hospital have resigned or were fired after refusing to get the

covid-19 vaccine and this year's olympic games will be alcohol free organizers hope the ban will help prevent a covid outbreak. it seems the games will go on, but they will be very different this time around i'll send it back to you >> we're going to monitor how they do that thank you. >> we're about an hour into trading on this wednesday morning. s&p came within about a point of a fresh intraday high. let's get to ubs director of floor operations, art cashin, to talk about what the bulls hold the ball right now good morning, art. good to see you. >> good morning. >> once again, we're here hovering just below all-time highs. what is the onus on the bulls to demonstrate they can do this >> really, i think it would be completely punching through. you know, we have been locked in kind of a rectangle for months and we have a seasonal pattern coming in, coming into july, which is historically the best month for the bulls. not the greatest gain, but the

most reliability for being an up month. and the seasonal pattern i had been watching had expected the weakness to continue into the early part of this week. in fact, this morning should have been the bottom it now appears that the bottom may have been last friday. we made nominal new highs, as you pointed out. but there's been no great thrust they haven't escaped gravity here you would think that if you get to the new highs, some shorts would panic. you would get a bit of a parabolic move to the upside none of that has come through. and i think it shows a hesitancy about several other things you know, you're seeing that pullback in lumber and other things then you saw the dropback in bitcoin. and i think people were worrying if we were seeing certainly disinflation or maybe deflation. and some of that has to do with, i have said here before, with

some movements in the chinese banking system, making in thes a little tight so we have got the uncertainty about these covid mutations. coming out of a small disinflationary pattern. you watch bitcoin, you watch gold if gold and bitcoin sought to move up, then the reinflation situation may be reasserting itself we'll watch for that, but you need, what do the bulls need to do, to get back to your question, i think is for a very sharp breakout, to convince a lot of people. >> right it doesn't sound like you think that's necessarily in the offing >> i'm still not certain i'm looking at my seasonal patterns they remain a little confused. i'm willing to concede we might be off by three or four days but they're going to have to prove it to me with that punch through. give me a little vigor i want to hear the bands as i said in my comments this morning, the new high was as though somebody walked into the

room and said, oh, hi, carl. by the way, i won the lottery yesterday. you know, there's no enthusiasm there. you want to see it >> on inflation, art, two things one is this morning market in their pmis said that shortages are getting worse rather than better while q2 will likely represent a peak of economic growth, and a peak of inflation is far less assured, and bostick talked to npr and said temporary inflation is going to be a little longer than we expected initially rather than two to three months, it might be six to nine months are those two data points worrying >> they are. and as i have said to you on your program before, carl, this shipping thing is on the verge of being a disaster. we have seen home depot go out and hire its own container ship just to get some of the products it needs in. there are rumors that people like target and walmart might have to do something similar

there are great difficulties in this thing i said to you and morgan when she was on that we were looking at a threat to the christmas season, that goods might not come in. so yes, we're having exactly what powell said we're having the chain of trade chain is holding things up, and that is giving us what looks to be transitory inflation. if that shipping cannot unplug itself, which started -- well, it got exacerbated back when that ship in the suez canal. it's gotten worse now with china, there are container shortages because things aren't going back and forth things you wouldn't expect, like farmers in america are suffering because they can't get containers to ship some of the produce that they can sell elsewhere. so it's going to wind up rotting on the dock. so a lot of strange things going on underneath the surface.

so i'm going to be watching gold, bitcoin, and some of these others are we going back into another resurgence of inflation. >> and the closer we get to back to school and holiday, art, those conversations will be even more acute thanks so much great to see you until next time, art cashin. >> pleasure to be with you >> a southwest ceo gary kelly, announcing he will step down next year. phil lebeau has the details. hi, phil >> gary kelly has been in charge of southwest airlines since 2004, but starting next february, he is going to be transitioning to a new role. this has been a long and some would say a very successful role, any way you measure it for gary kelly he has steered southwest through a number of challenges most recently, the pandemic and what it did to their flight schedules as well as passenger revenue. he will transition to the executive chairman role in february robert jordan, a long time executive of southwest airlines, will become the ceo, and all of

this comes at a time when airlines have a new challenge, and it's a challenge that they have been worried about for several months it seems to be getting worse it has to do with unruly passengers unruly passengers have become such a big problem that the faa now has issued more than 536,000 -- 563,000 proposed fines. it's also saying there are more than 60 cases, 60 cases where flight crews have been assaulted. earlier today, on "squawk box," we talked with faa administrator steve dixon about whether or not there needs to be a no-fly list for these unruly passengers. here's what he had to say. >> as has been the practice really throughout the last several months, the airlines are actually putting passengers on internal no-fly lists, and i have regular dialogue with the tsa on the no-fly list that's not within the faa's

purview, but something we are certainly very interested in as it moves forward >> by the way, the fbi controls the no-fly list, and to be put on that list, it can be recommended by agencies like the faa and others the person has to be considered a terrorist threat so david, this is an interesting time for the airlines. they certainly feel that something needs to be done, more needs to be done in order to get some control in terms of how people act when they're in the air. >> well, judging from those videos, yeah none too soon. phil, thank you. >> you bet >> still to come, another area phil knows well, self-driving truck startup embark is going public a $5 billion spac deal the ceo is going to join us right after the break. don't go anywhere.

do you struggle with occasional nerve aches in your hands or feet? try nervivenerve relief from the world's #1 selling nerve care company. nervive contains alpha lipoic acid to relieve occasional nerve aches, weakness and discomfort. try nervivenerve relief. this is how you become the best! [wrestling bell rings] [music: “you're the best” by joe esposito] ♪ try to be best 'cause you're only a man ♪ ♪ and a man's gotta learn to take it ♪ ♪ try to believe though the going gets rough ♪ ♪ that you gotta hang tough to make it ♪ ♪ you're the best! around! ♪ ♪ nothing's gonna ever keep you down ♪ [triumphantly yells] ♪ you're the best! around! ♪ [ding] don't get mad. get e*trade and take charge of your finances today. ♪♪ - [announcer] dearest smoke shacks, defenders of the dry rub. thank you for giving your all to a 20-pound hunk of brisket. whatever you serve, we'll proudly deliver it. (bike rattling) (pleasant piano music)

keeping your oysters business growing has you swamped. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo you need a financial plan that can help grow and protect your money. an annuity can help cover essential expenses in retirement, so you can live the life you want. this is what an annuity can do. learn more at protectedincome.org. that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. if i could, i'd ten-x everything. like a coffee run... don't just sell it. ten-x it. at cdw, we get your it staff has be ready to take on new challenges. that's why we built an office obstacle course ... to prepare our people for anything. you're late well, cdw amplified services experts will consult with you to design, orchestrate and manage your most complex technologies

to help you quickly overcome any obstacle ... without all of this. oh, that is better. who's that? oh, if you want coffee, you gotta get past tantrum. you're in for a brewed awakening. for technology that moves you forward, trust cdw amplified services self-driving truck startup embark announcing it will be going public via a spac with northern genesis two, the deal values the company at $5.2

billion. it would make it the latest player in is what is a grower list of companies in autonomous driving for trucking joining us is alex rodrigues, embark's founder and ceo i would love to start off with perhaps to our viewers' surprise, this is becoming a more competitive industry. you have two companies at least out there and public in some fashion. two simple and plus. what differentiates embark from those two competitors? >> yeah, morning, david. thanks for having me embark is certainly a unique story. i think the three things that really stand out are first, the technology stack embark has been testing self-dr.ing tests on public rotes in the u.s. longer than anybody else, the way we go to market by partnering with leading carriers as a software provider instead of trying to build our own fleet or or truck, and by being the hometown

favorite we're proud to be a u.s. company and to bring some u.s. technology talent to this critical industry. >> right you have, you know, partnerships that include hp, fridge adade, but amazon plus got some attention because it did sign a deal with amazon in terms of amazon taking a stake. and quite a few trucks that heir going to be making autonomous there. did you compete for that deal? is it a concern that one of your competitors landed a fairly large transaction? >> we tend not to focus too much on what competitors are doing. i think for us, the focus is really on working with the biggest and best carriers in the united states. and we certainly have a number of those leading folks, especially you mentioned some of the folks there, but four of the top 25 u.s. truck carriers are partners of embark's and working

with us today to bring full driverless technology to the roads by 2024. >> right, but you're going to -- you obviously need to call hon it companies that are then going to use you once obviously you have installed the software in the given truck and any number of partners on that part of things but what about the companies themselves you know, how do you approach them what is the marketing opportunity that you identify for them so they would choose you over perhaps one of these other providers? >> you're asking about the carriers, yeah >> yes, i'm asking about the companies, right, exactly, that are buying the trucks. not the ones who are making the trucks, but the companies that are using the trucks for their deliveries >> yes, folks like werner enterprises, embark's pitch ultimately to these carriers is we're one, bringing world-class technology to them, so one of the things people really get a lot of value out of is coming to our facility in san francisco or

in oakland and actually getting to see the trucks in person, take a ride. people always come away impressed. and then the way we're going to market embark licenses our software on a per mile basis and partners with the carriers. that's really distinct from the way other people are approaching the market where they're perhaps having more of a direct competition with the carriers where we view ourselves ultimately as a great partner. >> when i look at your potential revenue in out years, '24 to '25 seems to be a key inflection point for the company in terms of your expectations for both revenue and gross profit why is that, and what gives you the confidence that you're going to hit that, what is, $1.9 billion gross profit estimate out there for 2025 >> yeah, i would say that's really just the beginning of the inflection point this is a $700 billion industry, trucking in the united states. and so when we look at that, the

number in 2025, we're really thinking about how that can continue to grow in 2026, 2027 embark is laying the groundwork, has been for the last five years to , to bring a commercial product to market. 2024 is when we expect to have it in market when we look at it, we see a rapid growth after that. that's driven in large part by the fact we're a software company. we're able to scale up really quickly by leveraging the purchasing power and the operational expertise of some of the largest carriers in the country. >> i mean, all of this, of course, is designed to have the driver out, so to speak, not the driver in, but right now, you still have somebody in the truck, don't you >> correct today, in our internal development fleet, we have safety drivers in the vehicles, but the truck is driving itself from end to end, and it can be, so it starts from a transfer point, so it doesn't go all the way to an urban center, but the drivers will bring it, bring the

freight to that transfer point, the driverless truck will pick it up from the transfer point and drive it on the long haul to the next city. and that happens with the safety driver in the vehicle today. but they're regularly doing the trip without the driver touching the wheel. it's really a piece of our safety strategy, but the technology is there. >> right and finally, alex, just to you, we don't often get 25-year-old ceos occasionally do, and some of them have had a great track record of success. what's giving you the confidence you can run a public company and obviously deal with the myriad things you're going to be dealing with beyond simply understanding the marketplace? >> yeah. i feel very confident on the technology side. i'm pretty young but i'm coming up on 15 years building robotic systems i built 11 different robotics platforms. on the technology side, this is something we're very familiar with on the biz side, this is definitely something that's new to me, going to be new to the company, but we feel really

confident because we have -- i have an exceptional team, and i have an exceptional group of advisors folks like sequoia capital, folks like the northern genesis team who are going to be here with us as we build this company, who have seen this happen many times before >> alex, we appreciate it. congrats and we'll be watching thank you. >> thank you coming up on tech check this morning, do not miss former walmart e-commerce ceo marc lore that begins at the top of the hour first, contessa brewer live in las vegas, with a look at what's coming up. contessa >> and carl, the newest casino constructed on the las vegas strip in more than a decade opens tomorrow and it has all of the tech bells and whistles you can imagine coming up, i'll tell you about the new trends you can expect to see the casino industry and how it's changing the bottom line. re."onhehead on "squawk t stet

competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do.

workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.

let's get a check at the top gainers on the s&p 500 this morning. you have tesla plus some energy stocks there so kind of unusual combination tesla up more than 4%. june is pride month. we're spotlighting cnbc

contributors and our own anchor and producers. >> my advice to the former lgbtq community, it does get better. look how far we've come in support of lgbt rights from marriage to eliminating don't ask, don't tell. imagine what we can do in the next ten years don't give up and know it will get better of the watch out. the “make way, coming through” great... the storm alert... dad. and the subtle but effective ding. that's why we created low cash mode. the financial watch out that gives you the options and time needed to help you avoid overdraft fees. it's one way we're making a difference. because we believe how you handle overdrafts should be in your control, not just your banks. low cash mode on virtual wallet from pnc bank.

(♪ ♪) low cash mode on virtual wallet 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 the world's first fully autonomous vehicle is almost at the finish line what a ride! i invested in invesco qqq a fund that invests in the innovators of the nasdaq-100 like you become an agent of innovation with invesco qqq

new projects means new project managers. like you you need to hire. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home.

one las vegas resort is making a big bet on technology and cryptocurrencies our contessa brewer is there and has the story for us contessa >> reporter: hi, david when resorts world opens tomorrow on the las vegas strip it will show off technical advances that are really changing the industry. for instance visitors who come to this resort can use a mobile phone to pay for everything. the app has a gaming wallet, you can bet on bingo or walk across to the blackjack table you get your money deposited from your phone, get your chips. no need to handle all that dirty

cash the head of casino operations ex 3ek9s a boost to security and says real efficiencies from reducing the amount of cash handled. >> anytime you can reduce that motion, the amount of money you have to have on the floor, it's a cost savings, but it's also just a much better gaming experience for the guest they want to use apple pay whether it's at a grocery store, starbucks clearly does it, they've become very accustomed to using an app to pay for items and the gaming industry is no different. >> reporter: what else is changing no set room service menu you pick whatever restaurant on the property you want to order from, choose anywhere at the resort to have it delivered, and that's powered by grubhub. instead of a bouncer in velvet ropes, your digital reservation will be your entree, and crypto is coming to casinos

resorts world has partnered to explore how the cryptocurrency could be used. the las vegas pred of resorts worlds believe widespread adoption and use is coming, guys >> the use of the digital wallet, is it just eliminating the cash to pay for chips or is that how you make your bets and everything as well >> reporter: right now the chips are still in play. they think it might be possible to tap your phone and ante up here this is powered by igt this table tracks all the chips, what you bet, it all tracks to your wallet, the company says, look, it helps them know their customer better. >> how are you doing there you went from the slots and then you got your chips and now you're playing it's very impressive moment you

have going >> reporter: did you see what he dealt me first he dealt me first -- i got a blackjack and so did he. you push on your firsthand that would have me out the door. if i don't win on the first one, i'm out the table. >> and finally, what's obviously vegas in terms of capacity and people there, what are the latest trends showing for the city >> reporter: i mean, they're talking about near capacity for the bookings, for the forward bookings the pentup demand has been incredible you can expect to see this place crowded and other casinos that have reopened there's no restrictions, the flights are resuming at this point i think it's incredible to see the one thing they're missing are the all-important asian visitors, that really boosts the bottom line. they're big spenders when they come and spend on amenities and gambling and right now those are missing from the las vegas

scene. >> high rollers, that's what i remember sometimes they would miss a quarter, a company or two, as a result i hope your next few hands go well for you the comp outperforming a bit that will do it for us "techcheck" starting right now >> i shall leave you -- >> i should have left her. for all eternity a dead planet. buried alive buried alive ♪ happy wednesday. welcom