good morning futures pointing to a strong opening for stocks as we get ready for the busiest day for economic data specifically this week. signs of progress on an infrastructure deal. the group of senators is set to brief biden on a framework today. now jpmorgan chase is telling employees it may require vaccines in the future subject to legal requirements. we are digging into what companies can legally mandate. this is thursday we had questions about what day it was yesterday i think. today is thursday. june 24th. i think we should do the year, too. sometimes i don't know when i'm writing a check. >> halfway through, you figure it out >> 2021. >> it is >> this is "squawk box."

good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. joe said it. dow futures up by 180. yesterday, we saw pull back for the s&p and dow. this morning, we are awaiting a lot of news. joe mentioned jobless claims coming and durable goods and third print of the first quarter gdp and stress tests from the fed on the banks that is later in the day the dow is up 180 points s&p futures up by 20 nasdaq up 82 the s&p is within distance right now. if it were to open up right now, it is 15 points from the all-time high.

nasdaq needs six points to get to the all-time high if you hold the pre-market gains, you are looking at new highs for the s&p and nasdaq in the treasury market, at this hour, the 10-year note is yielding close to 1.5% 1.495% 30-year at 2.11. andrew in the meantime, i don't know how to describe this news software founder john mcafee died as suspected suicide in his prison sell in barcelona, spain yesterday. he was found after the court approved his extradition back to the united states to face tax evasion charges. his lawyer said he hanged himself when he learned of the court's ruling he was accused of not filing tax returns from 2014 to 2018.

despite considerable income on cryptocurrency or speaking engagements and selling the rights to his life story he was arrested last october at the airport in barcelona on the tax evasion charges which carries a maximum sfentence of 3 years. he claimed he would be persecuted in the united states because of the criticism of the irs. mcafee was 75 years old. joe, you interviewed him back in the day? >> he had so many chapters in his insane, sort of, life. i don't know if you call it well lived. he was a real piece of work. even in death, he -- i don't know the facts or what it looks like in barcelona. you read what they say it was very clear cut, sup supp supposedly he was tweeting recently, if

anything happens to me, i'm telling you, i did not hang myself it is an jeffrey epstein thing he had a tattoo on his arm that said "whack. i don't know nobody knows he's playing us from the grave at this point. >> not the first time left the country. belize he fearedfor his life which is why he left then. >> the irs would be after you if you didn't report any taxes from 2014 -- >> he didn't file returns. >> from 2014 to 2018 when i saw it, andrew and becky, and all of the previous tweets, you immediately want to think jeffrey epstein or some conspiracy then you look at the details that was the same day that he

was going to get extradited. no one wants to spend the next 30 years in jail >> he was 75 >> yeah. >> he lived many lives. >> i was surprised he was 75 he still looks pretty good now to the latest on the potential infrastructure deal. the bipartisan group of senator reached a tentative agreement and set to brief the white house. the lawmakers declined to disclose details only saying the group agreed on spending levels from the various infrastructure projects, but also how to pay for it all the earlier framework was $900 billion over five years. it is $579 billion in new projects and initiatives

senator rob portman will tell us about the deal at 8:00 a.m. eastern. >> reading through this, schumer and pelosi seem like they are on board with this and ready to go along with it. it gives it more credence. the top democrats would say we will move it through both chambers what the white house says is key. the question is do they have enough votes bernie sanders working on a counter proposal which is a $6 trillion deal. up to $6 trillion that is one the progressives are behind. the question is you have 21 senators on board with this. 11 -- do you have enough republicans to make up for the progressive democrats you will lose for the bill? >> someone mentioned that yesterday. i think i said four. they said six. and even some people, you think of as progressive, were like, wait six? we're talking six?

we're adding six on? >> that's it >> we definitely need another six? i don't know. in other washington news president biden will replace the leader of the federal housing finance agency fhfa you know the agency which oversees fannie and freddie. fannie mae and freddie mac the white house is moving forward to find a successor to the trump-era holdover he was trying to end the fannie and freddie government control a lot of people were hoping to make money on fannie and freddie as public entities the way they used to be the official told cnbc that the president will seek a new head of the fhfa which better reflects the administration's

values the decision comes after the supreme court ruled the housing agency should be accountable to the executive branch until the 7-2 ruling, the fhfa could only be removed by the president "for cause." now that is no longer the case. shares of beyond meat. the shares of the company dipping after the note from jpmorgan chase said that dunkin discontinued the beyond breakfast sausage. the sandwich is available at several hundred vlocations out f the 8,000 that exist in the united states. dunkin is working to explore plant-based options. >> this is inventory they have left the hot dogs at the convenience store which has been there since early spring

>> maybe or a few hundred stores have great demand for them? maybe. >> okay. >> do you guys, by the way, see the story in "the new york times" yesterday where they tested the tuna fish at subway to see if the tuna was actually real because there is a lawsuit? >> zero tuna dna >> what is it? >> another fish. i was thinking about that. if you are a tuna aficionado and you count on that and you get a filet of fish at mcdonald's, do you know what that is? >> you don't >> wendy's says it is is cod i don't like the fish that lay on the bottom and look up with their eyes on it >> flounder. >> i thought the result is a test of the article where they couldn't figure it out

it was possible it was tuna. it could have been cooked so well that it couldn't come up with a conclusion. >> if it is another fish, that is one thing if it is a mouse, that's another thing. >> if it is another fish, it could be overfishing >> it was a weird piece. >> it was fascinating. another use for a pcr test, which was also interesting in the article. that's how they went to figure it out >> filet of fish andrew, i want us to come together on a tax plan you probably can't believe that. >> okay. >> i really do i think you are right about the build up of stock and take a loan and get that income it's not reported as income. that's an issue. you are wrong on the charity stuff. i'll tell you why.

i think you are wrong on the charity stuff. >> i'm sure we can find a place in the middle. i believe it >> the charity stuff, i think, andrew, if it is $100 million and all capital gains. it is zero if you give it away now, how much does the charity get? $100 million >> yes >> under your plan, the first $5 million would be okay. the next $95 million is taxed at capital gains? pay step up on the capital gains. let's call it for argument sake say 20%. $20 million would go to the government and $80 million go to charity. >> right >> my thing is i would rather have the charity have $100 million. >> i get that. i get that >> i don't want to feed the beast. you say it is for roads. no, it's not it is the green new deal or free

college or the $6 trillion >> i agree >> who is spending the money the charity needs it i much rather have them have that extra 20. why is that wrong? stop saying that then. >> there's nothing wrong with the view >> stop saying you get the money from the charities get it from the fat cats are taking the loans against their stock. i'm no longer defending these guys i'm not one of them. why am i sticking my neck out? stay in space, bezos i don't care >> the only thing i say about that and trying to tax that piece of it or some piece of it is two things. one is i think a lifetime of great fortune is fabulous. i don't necessarily want to feed the beast. i want a democracy where everybody gets a bit of a say. a bit of a say of how the --

>> who do you want to have the $20 million? give it to the people who are trying to do good. not the people who spend it on everything they are terrible. it is not going for roads. it is going for the climate justice or god knows >> -- let me suggest to you -- like you, actually, i look at the way the government spends money and think it is terribly mismanaged the government obviously needs to get its house in order. it is not clear they are or ever will i appreciate that part i appreciate that we live in a democracy. both of us, who i believe are w-2ers, have to pay a certain percentage of our money and whatever fortunes you and i make, we don't have the great privilege to do it this way. >> it is not a privilege

because they get to earmark the charities they like? >> no, no, joe joe, what happens is typically let's say i make $1,000. my $1,000 gets taxed as ordinary income then i take the ordinary income and buy shares of something. those shares would do whatever they do. then i could go send that money to a charity on the stepped up basis. >> good. >> the difference is and i'm not a founder of something necessarily. if i'm jeff bezos, i started with shares that were worth effectively zero, right? >> yeah. >> there was no income involved. the shares have never been taxed. there was no income that was ever taxed >> i guess the question is do you have a problem with it going

to the charity look, i'll say there may be reason to start looking at the charities more closely if you have a huge endowment and you are not spending it, maybe there should be more transparency with the charities. >> it is not income. it is capital gains you described. the capital gains -- who do you want to benefit from the capital gains? the charity benefit from the increase than the government take its share and the practical matter is you hurt all of the charities and people say where is my bed what we have is a $1,400 -- or who the hell knows when you feed the beast, it just never stops. it never stops how much is enough you got plenty now. >> the person who is giving away their wealth is not benefitting from it. you could make the argument that sometimes somebody is giving

their wealth away, maybe they are benefitting from it. >> how >> influence maybe a building named after yourself maybe something comes back to that at the same time, i would prefer to see some of the charity work go out it is like venture capital funding. they get to do things the government doesn't however, i like to see oversight of the charities >> maybe warren saw something. >> look, there are charities out there and there are charities that do a ton of good work >> somewhere the money never goes out it goes for jets >> i have this perspective do you want great charities to get as much money as humanly possible i also feel like for this system to ultimately work and i hate

using this word. the democracy has to feel the system is fair and the tax policy unto itself is to some degree of a representation of what this is supposed to be. >> i think there are a lot of problems in the tax system i agree. the charities bother me the least. there are other areas of the tax system that don't. >> the charity system that bothers me the least, too. that is one of the things. >> why can't we get the billionaires on consumption? they get 5,000 foot yachts >> you hit the poor people >> there's a way to do it. >> by the way, there are consumption ways there are different ways to deal with consumption there are ways we're going to come together and figure it out. when we come back, we will talk about something else. the rise in tech stocks as we prepare for a big slate of n

economic data. check it out the dow up 200 points. s&p futures indicated up 22. nasdaq indicated up 85 later this morning, pharmacy chain rite aid out with earnings e e p company's ceo joins us in th7:00 "squawk box" will be right back. >> announcer: this cnbc program is sponsored by cdw. people who get it. here and here. adobe sign orchestrated by cdw, automates esigining across devices to bring organizations together. protected by industry leading security sign integrates what the tools are already using so you can grab signatures across organizations and even time zones to save you money, materials and mileage. making it easy to sign here from anywhere so you can do more everywhere. to take workflows further, trust adobe on it orchestration by cdw.

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so is it time for the great rotation to reverse? take a look. you see the qqq etf that track the tech names up 6.5% over the last month over the dow. joining us now is the strategist jj jj, we thought value was the hot trade and then technology and value. now technology back on how do you describe it >> the war between the two, becky, will continue through the next few weeks the reason i say that is because we have numbers to trade on. the fed meeting just ended because of that, the numbers take on a little bit less importance than they do further

along near the fed meet. also, some earnings today. we are not in earnings season. that doesn't start for a few more weeks we he continue to go back and forth. one thing i will point out to your point about tech and value. i think sometimes things are miscast. what i mean by that is stocks like apple and microsoft are stocks that people go to the big technology stocks, during times of trouble. we saw that mid-month last month with a selloff last week with a selloff we see retail clients who go to apple and microsoft as pillars are strength or things out perform to the down side rather than necessarily looking to them for more of the growth side of things i think big tech is sometimes put in the growth side i don't necessarily see it as being a safety play and then getting the added bonus of looked at as a growth play >> that's interesting.

an evolution in thought and some of the companies in terms of the big tech names and how tied they are to the fed and to what happens to interest rates. if interest rates go up sooner rather than later, does it make them less attractive >> i think in the shorter term, it probably will for many people again, longer term, the big technology stocks, people will continue to come back to as i say, evidenced over the last few weeks where i think the bigger problem comes, the other areas when i talk big tech, the faang stocks, like microsoft i think other areas with chip stocks, et cetera, those are areas that suffer more so than do the bigger and not all cases faang stocks i'm primarily talking microsoft and apple. the establishment and been

around trusted names when people go down, people trust them what we have seen in the last few days is the starter of microsoft and google are clients going to those more? the one name -- and facebook the one name they are not going to as much and don't go to in times of trouble would be netflix. that one hasn't been bought out of the fanang stocks the buy-dip mentality has worked in the last few years. the opportunity to buy the dip, these are stocks that people are going to for the first -- becky, you keep going with the same play that works and works. we're seeing the same thing with investing. >> it works until it doesn't j.j., in ternms of the retail investor last friday was options exploration. a drop based on comments that bullard was saying as hawkish as

a member of the foc. what did members say i was surprised with the vitriol. why are you focused on this? anger about the idea he would say anything to drive the markets down as if the investors are not used to markets ever going down you were talking a 1.5% move not a big deal unless you are riding on options that expire that day >> primarily, becky, most of the clients are out of the expiring options by friday afternoon. we say most people, you don't want to take the risk on i think part of it came because that is the biggest move we had on a quadruple witching move that may be part of it, becky. you know, we had the slow volume and slow grind up. the first time heavy volume to the down side. it shook people up overall

the last thing i will add is that was, i believe, the second largest operation in the history of the occ you know, you had a lot of factors enforced there and it may have led to overreaction to the words you nailed on the interview. >> it was a 1.5% move. you cannot get used to the 1.5% move down without rough times ahead of you j.j. -- >> the last half hour was violent and that's what may have caught people by surprise. that last 30 minutes was a quick mover. >> j.j., good to see you talk to you soon. >> always a pleasure, becky. talk soon. i'll get in trouble for asking this, andrew. i can't help myself. you remember, you remember the great mitt romney? you remember the moment he blew it you remember the numberhe said the number he said 47%. you remember what he was talking

about? 47% pay zero federal income taxes. in your utopian democracy, how does that factor into your thinking >> you are making a very good point, joe kernen. >> i wanted to say -- you know, i say that and say carlos danger which one would you choose they are both so good if you had a name de plume. >> the way you presented the numbers. that's unfair on that side >> toward them i'm not saying they should in the utopian democracy, not everyone has a stake in terms of supporting the federal government i just wanted to ask that. i know i'm in trouble. 6:28 >> it's a smart and good point. >> i'll let you. you will come back someone will text you. one of your people you come back and bury me.

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arrested staff in recent days. we had a long discuss with eunice yoon yesterday. five top editors were taken into custody last week. the paper's founder, jimmy li, is already in prison andrew. we will talk more about the china crackdown on hong kong in the next hour. anthony scaramucci will weigh in on the shutdown of apple daily and the regulation of cryptocurrency and more. the conversation you don't want to miss. first, morgan stleany's vice chair carla harris joins us after the break when "squawk box" returns >> announcer: executive edge is sponsored by at&t business our people and network will help take care of business. ay, imagi. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown,

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welcome back to "squawk box. morgan stanley kicking off the mult multicultural conference today colin powell and others are

attending. we have carla harris, the head of client services group at morgan stanley with us carla, great to see you. almost like a reunion. we had the conversation once a year i hope to see you more than that you have been putting this event together for some time the back drop is different and has changed. i hope it has changed in the last year. i'm curious how you think it may be different >> good morning, andrew. thanks for having me on again. we are excited this year i think things are different there are a lot of things that transpired in the last 15 months with respect to and awakening, if you will. we learned how to pivot and innovative in the moment there is a different spirit of collaboration in the marketplace at large the conversation with the economy and national security strategy and assessing change through the eyes of diversity and equity and inclusion talking about the changing health care landscape. all of that is top of mind for

leaders today. these are the things we will tackle in the next few days. >> carla, in terms of investment -- investment in minority businesses and entrepreneurs, do you think things have changed? softbank announced big programs. lots of companies have announced lots things. i'm curious. >> i challenged you last year to come back this year and talk about it certainly there have been more announcements and more firms that have followed through you know, andrew, we continue to keep our foot on the gas yesterday, we announced a groundbreaking fund, private equity fund, where we are partnering with three corporations hurst, walmart and microsoft to lean in with not only money, but with our expertise to really ma marketedly and advance the

skills we kept our foot on the gas. >> what are you seeing more broadly? we have seen a number of announcements. have you seen the money show up with investment? i don't want to say i'm skeptical. i remember a lot of the press releases that went out 12 months ago. i haven't seen a lot of press releases with actual announcements of where that money has gone >> that is a fair point. a very fair point. andrew, you are seeing that money trickle in now i talked to companies with respect to investing and those opportunities, they, too, have received money from some of the large tech companies you heard that made announcements last year now, here we are 11 or 12 months into it. i can say i'm starting to see the money trickle in which i'm thrilled about >> in terms of what you are planning today what is the one conversation you are looking forward to

>> that's not fair, andrew i'm looking forward to all of them two in particular, the three big ones the one with general powell, of course, led by ambassador ron kirk we have an amazing conversation with lee and assessing change and looking what they are doin with diversity and inclusion in their own organizations. amazing conversation with lloyd dean around the changing health care landscape that is what is on tap for today. >> before i let you go, i see you are working from home today. i don't know maybe that is your office in the city what do you make of the big boss that your boss is saying everybod vacci vaccinations >> we learn about being together it is a team-oriented environment. i think you will see over the course of the summer people will

start to come in and in the fall, we will be close back to the same speed >> can i ask a question and maybe a sensitive question i have been an advocate of mandatory vaccinations for a long time. somebody said to me the idea of mandatory vaccinations is particularly discriminatory. that was used. certainly communities, minority communities have a hesitancy around the vaccination do you believe that's true not the hesitation part. it would be discriminatory for corporate leader to decide to mandate the vaccination. >> listen, i think there are other things to think about, an andrew the safety of people working together is something that has to be paramount in any leader's mind i'm not sure i would subscribe to that gospel >> okay. ca carla, great to see you. lots of luck. >> thank you, andrew

>> thank you when we come back, stocks to watch. we will show you the impact of rising material costs and rising home prices on a major home buld builder's bottom line. as we head to break. a look at the u.s. equity futures. dow up 200 points. s&p up 22. nasdaq up 79 points. perhaps on the bipartisan infrastructure deal. they will meet with the white house today. "squawk box" will be right back. >> announcer: currency check is sponsored by interactive brokers. the professional's gateway to the world's markets.

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the shares of kb home are falling. down 4%. the company's earnings of $1.50 a share beat estimate. revenue was short. the order backlog at the end of the quarter of 126% val frue fr year ago beat estimates. coming up, a tricky topic discussed in board rooms can companies legally require their employees to get covid

vaccines we talk to a legal expert next "squawk box" is comingig ck rht

jpmorgan chase telling employees it may require them to get vaccinated according to a report, citing a memo from jamie dirmon and othe bank leaders, ordering workers to fill out a questionnaire. all u.s. employees and those not vaccinated should plan regular office schedules by july 6th it said in the future, jpmorgan chase may mandate all employees receive covid vaccinations consistent with legal

requirements and medical an accomm accommodations >> morgan stanley says if you are sfvaccinated, you are coming back july 12th they need to see people back trading in person on in the operations where they think nee crucial where people need to be face to face >> looking at those legal requirements joining us now from california where she's a member of the vaccine edge cassie and policy thank you for joining us it seems like some gray areas. in the private sector, it doesn't seem that gray there's plenty of legal precedent for other types of vaccines and talk about some of the issues where it does get

stickier i'm thinking more public scenarios and maybe colleges and elementary schools with minors where it might get a little more difficult in terms of legal ease >> as you've said, in the work place, we have a history of vaccine mandate. we have for example, health care providers requiring vaccines some restaurants require h hepatitis a vaccines the employer can provide the requirements one place where these are still under emergency authorization which raises the question can you mandate under the emergency authorize. that is a little unclear

but it is easy to say that uai act only limits the federal government and doesn't say anything to private employers. that's what the recent federal courtroomed. >> professor, it seems you can make the case that the individual in this case may have to give up some of his rights for the collective good, for the public health of everyone. i certainly understand that. at the same time, and i think a lot of federal agencies are well intended and do their very best. it does seem like the individual is ceeding some of his rights and trusting that they will not cut corners or they could be

just wrong about the long-term effects. and i'm thinking people under 18 where parents feel the risk/reward the risk of the disease whatever they perceive, whatever these are you are ceeding an immense amount of authority to the governments that going to do its best but the science might not always be what you think at the time >> you are raising three really important things the first is a question of if the employer mandates the vaccine, is this a mandate of rights right now, we are not talking about the government you are talking private employers. you don't have rights with the employer you may have legal rights

because of disability. with two private actors, the employer also has rights part of the bargain of the work place is, you agree to obey the work place rules and you get the salary that does mean you are accepting the work place rules aren't something you like, you are not giving up your rights. you are making a choice. is this work place work it the other point, it is an important one, do we have a proper regulation of vaccine as you are saying, no regulation is going to be 100% perfect. we have the most robust oversight that we have anywhere else we have more than one agency looking at it and two expert agencies looking at it and four

systems to collect data on this. again, that doesn't mean we know everything now we never know everything about anything but we have data from over 160 million americans who got the vaccine. as you are saying, when something comes up, we tend to identify it. even if it is rare the myocarditis cases are rare and we identified them the j&j blood clots were rare and we identified them the other thing you mention is minors these issues don't generally apply to minors. they don't go to work. down the line, we may have mandates for school. we are not there yet schools are state mandates private schools may require just

like an employer the states will have to go through the department of health no state has done it yet and i think they'll wait until full approval >> i'm thinking about college. you have an 18-year-old. they've had antibodies even if they didn't, the risk/reward of the vaccine and someone decides at 18 years old, i don't want to be required to get this emergency use authorized vaccine before i go back to college and i've already got at ty bodies would that be fair to mandate for them to go to campus, they need to get the vaccine even if they've already had covid? >> so, you are completely right, on one hand, the question is you now have an adult who does not want to be vaccinated and they

are saying the condition of me going to college on the vaccine. the other hand is the colleges older students is a safe environment. we need to provide students a safe environment and we need a strong incentive they are looking to make the school safer part of what they are doing is doing it by mandate. the mandate can allow exception for those at schools >> i'm sorry, professor. they are playing this music. we need a lot more time. these are issues that need to be discussed. they are gray but in certain cases, we did get a lot from you, professor at uc hastings law school >> it is being required at a lot

of colleges right now. >> coming up, when we return, pharmacy change rite aid ceo you don't want to miss it after this [sfx]: happy screaming [music ends]

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futures pointing to a strong open that could send the s&p and nasdaq to record highs riteaid ready to record. the ceo will join us to talk business during the pandemic the nfl looking for partners and comcast playing down an am& spending spree the second hour of "squawk box" starts right now good morning welcome back to "squawk box" here take a look at u.s. equity futures right now. the dow looks like it would open up higher this morning

nasdaq higher by about 80 points and the s&p up about 21 points buzzfeed is near a deal to go public with a spac merger. the deal would help fund buzzfeed with more acquisitions. comcast, our own parent group, in the news working on ways to become a streaming power house the story is pure speculation. the u.s. debt is back in the news yellen urges lawmakers to raise debt limit through the past they've stretched deadlines. yellen says that would be more

difficult this time because of spending on various covid-19 relief programs. nasdaq hitting a record high and the s&p 500 came within less than a point dom with us. at the time. i have another question for you. i don't know, i like you >> first of all, you are one of the anchors of the show and producers. i'm here to do whatever i'm told >> this is business and it involves nbc sports. >> it does i don't do anything that doesn't make sense >> let's get through some of the market action first, you mention nasdaq hitting a record high

yesterday. if i were to tell you the nasdaq were underperforming one key component, that's the large cap midcap internet names. ftn, first trust down jones, big names like amazon, facebook, alphabet, paypal make that up. look at that versus the orange line you can see there the white line has out performed the various points out performing in the various weeks by the middle of may, we've seen the outperformance. this particular etf is up about 16% since about may 13, watch that development on the paypal side of things, look at these stocks because they are up about half a

percent. paypal up. square up. the reason why, analysts calling both of these stocks initiated with a buy rating. 275 price target for square. square with not just the cash app and merchant business as well cryptocurrency and keep an eye on those finteches bitcoin marginally higher right now. 33,303 etherium about flat. light coin and dogecoin back up to about 24. keep an eye on those now business is out of the way i am happy to converse with you

about whatever you'd like. >> you saw the great golf challenge. we have one more major on nbc as well >> the open. >> it is in mid-july because the pga is now earlier, which i totally like, because it makes it more important and it is cool and it is a major. i know i'm going to have some remorse that the majors are ending in july does that make you feel like we need something else in august or september? ryder cup. >> and then president's cup. >> do we do the players? or try to start paving the way with one of these other high-profile tournaments >> here is what i want to say.

the reason i don't necessarily disagree with front stacking some of those major events toward the first half of the year is because there is an industry buildup we know the golfing economy thrives when people are on the course playing that happens the most in the spring and summer. you look at equipment sales and golf rounds play vgs you get people excited early in the season so that they spend their income on those types of things like golf equipment and going into the summer months and things trail off a little bit. i struggle with the same thing during the nfl season, the draft, the super bowl, you look forward to the draft and you have to wait another three or four months until the season kicks off. maybe there is a happy medium. >> at least it is on the golf

channel and nbc. >> we are accompanying that. they did a great job on the open hicks did a great job. >> absolutely. >> dom chu thank you. and the whole golf channel was great. >> fun to watch. when we come back, riteaid and how the company has adapted during the pandemic. check out shares of eli lily the experiment alabzheimer's stream receiving approval from the fda. we'll be right back.

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welcome back rite aid out with their 2020 results. adjusted earnings in at 30 cents a share. it is predicting full year revenue that comes in above expectations joining us now to talk about the results is the president and ceo ofe aid. hayward, thanks fo is great to u >> thank you it is great to see you, becky. >> very interesting numbers.

adjusted earnings in on a per share basis. when we look at what's happening in retail pharmacies same-store sales up 34%. a gain of 8.2% in the pharmacy but decrease in the front-end sales. i'm surprised. the economy is reopening what i didn't realize what a huge gain you had seen earlier of people hording things like cleansing products, wipes, toilet paper what happened? >> we almost can't and don't look at comps over the last first quarter because that's when our surge occurred and people came into the stores and cleaned out the shelves because they were so panicked. we kind of for get about that. it is really skuing the comps because actually our front end

is looking positive over the last few months because we are seeing finally people coming back and happy buying seasonal items and beauty for the first time in a long time because they are maskless and buying greeting cards. it is screwing and better to look at a two-year stack over last year. >> how are same-store sales if we were to compare to 2019 >> i would say they are doing pretty well, holding their own we are still not seeing the foot traffic we saw then. it is just not as lopsided as looking at the year-over-year comparison it is optimistic in beauty and seasonal we are seeing the highest inventory turn than we've seen in many, many years. we are almost three times in terms of inventory terms

a reflection of how strong our new merchandize is our better for you organic offerings which are more on trend targeting the new customer which is the female age 29 to 49 who is coming to buy things for herself, her kids and her parents. we are starting to see the results and the traction that we were hoping for that really got a little side ways in the pandemic on front end. >> your stock is down 4% right now. for your revenue estimate, you are talking $25.1 billion. street was looking for $24.6 billion. when i look at the adjusted bent loss numbers, you are looking

for a net loss per share of 79 cents to 24 cents. i look at thompson, they are looking for adjusted gain of 81 cents. how do they matchup. is that an apples to apples comparison or not? >> i'm focused revenue is going to be strong. i think the focus is really on adjusted ebita and the guidance we have given for the year being less than what some of the analysts had expected. listen, we are beg very cautious because we had a miss last quarter due to the complete melt down, i'll call it, of cough, cold, flu in the pharmacy and front end because there just was no cough, cold, flu. we didn't realize how far down and evaporated that business would be as we look forward, we need to

be very cautious and prudent in our guidance our guard eans is in the range f 440 in a adjusted ebita. we are careful to say, the delta variant is out it could shut things down again. i hope it doesn't. we hope enough people get vaccinated that we don't have the variant becomes so significant. listen, california, we are big in california, they literally just opened last week. we are very worried. optimistic but cautiously optimistic that covid doesn't come back and shut these markets down again we are not anticipating cough, cold and flu will be at the same levels this year

we are expecting some improvement. we are not expecting full improvement. we don't have anything in our guidance around booster shots or vaccines for children under 12 we are clear on our out look i believe the pressure on the stock is primarily due to the adjusted ebita guidance we've given with a fair amount of caveats. it is very hard and remains very hard to predict. we are still in the throws of this to some degree. >> that is fair. i've looked through the list of your key assumptions it does sound like you are all being fairly cautious. you are not expressing some benefit. there is a long list of things it does look close you are anticipating the markets

and retail close doesn't cause a lockdown from the covid-19 again. that does sound like a strong possibility. >> i would say for us. not in the south or southwest. we are in the markets where we were more affected than any other pharmacy we are in the markets that were locked down. the northeast and the west coast. bad news for us last year and i think we got hurt by that. the good news is those are the markets now most highly vaccinated something like 70% in the new england area and even in san francisco where my daughter lives. san francisco is at 80% vaccine. at least one shot. i do believe for us, we'll be benefitting more from that because of the high vaccine rates. one would imagine those markets

would be less affected but those were the if irs to shut down with any issues. i agree with you, i think we feel pretty good about that. >> you are saying because you don't operate many stores in the south and southwest where vaccination rates are lower, perhaps they'll get hit harder this year? >> i think so. the vaccination rate is lower and the delta variant hits they've also been slower to shut down also. but that's a lesser risk for us. >> hayward, let me ask you about another risk all of these pharmacies have had to deal with and that's amazon potentially getting into the pharmacy business and not to mention how much consumers are relying to online shopping. do you think people are going to come back to the stores

eventually what do you do in terms of amazon getting into the pharmacy business too >> amazon has been in the pharmacy business for several years and hasn't really, from my point of view, hasn't moved the needle on our business or even particularly their business. you worry about amazon they are a mighty company. our biggest competitors remain the other drugstores some of them more innovative digital pharmacies and the grocery stores we have seen significant increase in digital adoption both in terms of the high growth of our e commerce business most exciting for us has been the delivery applications. originally instacart and skrip

drop and most recently doordash. our business is very early but we have seen a very big adoption over the last few weeks. we've seen some strong numbers with doordash. we are piloting buy online and pick up in store we are seeing good adoption of delivery for our precipitations. people are picking up precipitations getting tests through our drive thru and picking up prescriptions too. we have always been very anytime bell if you don't want to go to our store, we'll deliver it to your home, we'll have instacart pick your items up, allow you to go through a drive-thru you can buy online and pick up in store we are seeing great flexibility. a lot of people are excited about these options so that they

don't necessarily need to go into the store we are starting to see the early signs of people just thrilled to be back in a store and doing some of those impulse buys >> hayward, i'm sorry we didn't get to the esg this morning. a lot of interesting things here thank you for the straight forward conversation thank you. good to see you. lawmakers are debating bills that would reform and possibly even break up some of the biggest tech companies is it political overreach or good for competition and beijing tightens its grip in hong kong as a free speech paper prints its last edition. today's aflac question what was the fstmair ix movie ever made? the answer when we continue.

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what was the first imax movie ever made? >> the answer, "tiger child" in

1970 the 17 minute short film premiered at expo 70 in japan. lawmakers debating bills that would reform and possibly break up some of the biggest tech companies including apple, amazon, microsoft and facebook is this a boost to competition or political overreach >> joining us with some answers, john >> any move towards breakup orders is politicaloverreach it is the 20-year anniversary of breaking up microsoft. a federal judge said you have to separate to windows and apps business thank goodness, they went on appeal yes, microsoft needs some curbs

microsoft hasn't crushed innovation we have operating systems including different ios. are there problems with how these companies have muscled online stores. yes. they should promote marketplace fairness not european style protection. let's stop trying to stop today's tech problems with yesterday's legal ideas. stepping up america's biggest companies, it is not just dumb, it's economic malpractice. >> why do you think there is so bipartisan support for doing exactly that >> andrew, on the other hand,

today's big tech challenge is more serious than change a couple of years ago. pcs were becoming important. the online economy, apple and premium digital goods, facebook in digital speech, these companies have the future in the headlock this legislation itself wouldn't break up big tech but would make it easier for enforcers to use it as punishment if these companies keep breaking the rules. they keep getting fined but they are so rich. so let's get a consequence they'll pay attention to and maybe the threat will change their behavior like it did for microsoft. don't be so scared about breakups ebay was so scared about breaking up from paypal and they did and now paypal is about

eight times the size of ebay >> what does the public want are they as fired up as congress is is it. >> people in general feel like something needs to be done about big tech as long as it doesn't hurt the services that they like from big tech and overall, they are not too worked up about it there is room for congress, believe it or not, to do the wrong thing. >> john ford, showing us all sides and all hands. appreciate it. we debate this all the time. we do. >> we do you know me, i like these companies. i don't know i don't know, andrew i don't feel harmed. i feel good. i'm happy we are not europe. what have they got, s and p?

still to come, sky bridge cap capital joining us comcast said to go on an m&a spending spree analyst rich greenfield to join us a reminder that june is pride month, all month long, we'll be spotlighting cnbc contributors and businesses and producers here is scott stern. >> growing up for me, there weren't many role models and then i realized i was trying to blend in and not stand out i think it is important to not blend in and figure out a way to stand out. that's the only way to really be proud of yourself.

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hong kong residents scooping up the final copies of the prodemocracy newspaper apple

daily after the chinese government forced it to close. more of the crack down in hong kong eunice, good to see you. >> many stood for hours to get one of the million copies that had been printed for the final edition. hong kong activists stood outside to bid the paper farewell the closure heightened concerns about how broadly the national security law will be applied to stifle free speech and free flow of information about a year ago, officials said the law was aimed at an extremely small minority of criminals, however since then, authorities have neutralized lawmakers. changed election laws, changed skonsorship for film industry and tighter oversight for independent legal and accountant associations some will be tabled

in july. all of those moves creating an uncertain business environment i spoke with the head of american chamber of commerce she told me the closer the paper is a sign of the changing times. this comes after their recent survey that found over 40% of res respondents are considering or planning to leave hong kong citing concerns with the national security law the reason for those staying, they say there are a lot of good opportunities in hong kong however what they are doing is reorienting their mindset. they don't necessarily think of hong kong as an international business hub but they are moving and shifting that thinking of hong kong as a window into china as china tries to draw hong kong closer into the main land. >> okay. thank you for that report,

eunice we'll keep our eyes on it. tech mogul thiel turning a roth ira into a piggy bank and rich greenfield talking about comcast and before we go, a look at the winners and losers in the s&p 500. back after this.

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propublica article, a new one. highlighting how theil turned a roth ira into a $5 million account. what a brilliant move. really an outlier but there are quite a few of these guys that have a couple of million, maybe not billion. >> yes warren buffett and others have tens of billions in these accounts the second in a series of articles of how the wealthy use

loopholes. billionaire peter thiel used a roth ira to shelter himself from taxes. he grew it from $1,700 in 1999 to $5 billion in 2018. if he waits to withdraw that money when he's 60 in 2027, he can withdraw those funds without paige income taxes most iras have a limit but he was able to get around that by buying shares of paypal at the time, which he was a cofounder of in 1999 he paid less than pennies per share. as the value of paypal exploded, the value of those shares exploded tax-free inside the ira and why now in the future at the

age of 60, he can withdraw it. the roth ira was aimed at helping middle americans save for retirement the fact that now it is being used as a tax shelter for billionaires clearly likely going to lead to some calls in congress for some kind of reform it is hard to tell how they would reform this particular abuse given at the time he was below that $6,000 threshold. >> i wonder what it is actually worth. >> this isn't a problem of him contributing it is what he was able to buy with it. he bought a tenth of a share if you are buying public entities it is a different story other than saying i'm going to buy this private stake and value it at whatever i value it so with my $2,000, i can buy a part

of this company. >> it was an unbelievable move to found paypal and have something that grew to be his stake is worth $5 billion. he's a genius to do that did he need to -- if you are a genius and you see the opportunity. if your accountant came you and said, hey, check this out? >> this was a brand-new thing. his accountant said do it. >> the question is, is this about the fact that private company shares are allowed in a roth ira, maybes that part of the issue. however, it appears warren buffett has something like $20 billion in his fund. i don $20 million >> i don't think that's a roth the roth didn't come until 1997.

buffett would have been making more money and income to qualify for that i know he's talked about an ira in the past. in the early 70s, he did put like $7,500 for several years. >> at the end of 2018, he said he did it through publicly traded shares available to everybody. it is hard to understand how we got to this place. >> the other thing, robert, it was a pretty good vehicle for middle income people or whatever you want to call them to build a nest egg does this situation with a handful of billionaires -- there must be a way to fix it without throwing it out.

it shouldn't be a way to build a golden egg but a nest egg. thanks, robert to discuss more is anthony you can find multiple things in the tax code if you find a smart enough guy they really tried with the roth to prevent this from happening and yet there is still a way to do it. what is the solution >> one of the ways to solve it, is if your roth ira goes over $3 million, $5 million, pick a number, it starts getting taxed. that takes away the incentive. you could take a position that, you know, it is a million

dollars. anything above that, you take it out of the roth ira and subject it to capital gains income tax something like that, a threshold will be imposed. the goal for this stuff was to help middle income, lower income people have a nest egg for their future >> that's one way. we've had a lot of tax conversations recently, anthony. i don't know anyone like you or me or andrew that says the wedge tax is a way to go about that. maybe, i don't want to speak for you. if you've already paid income tax on it, do you think the government should just come in and pay 5, 10, 15. she says two or three cents, elizabeth warren

>> no. that would be a weapon of massive capital destruction. there is no society for 5500 years that has imposed a wedge tax with anything other than an unmitigated disaster the cold hard truth is that we are borrowing about 53 cents for every penny we are spending it on we'll look at that and see if we erode confidence in our capital system and us dollar, et cetera. nations that do that, they often get in trouble we may need a value added tax. we say that. i'm a right of center fiscal conservative if you step back and look at the amount of spending we are doing. with he need some of that tax to catch some of these people outside of the tax ice teem. when goods or services are

flowing back and forth and people are getting paid in cash or off the grid so to speak from a tax perspective, we are able to collect revenues from them. >> anthony, how would you handle the idea of folks, really truly wealthy folks take unrealized gains in terms of stock and use that as collateral to live off the loans. in some cases, they live off the loans and it gets stepped up at death. we have seen this to be the case a little bit with jeff bezos not that he's living off the loans completely he usually sells shares he takes that money, it seems and uses it to fund blue origin.

>> another complicated thing we've decided in 1913 we were going to have an income tax, not an asset tax in the united states why did they do that they were trying to incentivize the formation of capital capital gains was a lower rate trying to insure tut and incentivize you to put money back in. your money and my money is not in a swimming pool in the backyard in hundred dollar bills, it is being invested. that is the bedrock of the system to allow capital to be formed and then of course borrowing against capital, that is as old

as anything in our society >> china, bitcoin, you've dealt with china you were at one point going to sell skybridge to china. >> no business person that views hong kong now as anything other than part of china but i'm not ready to write off that whole city it is a different system but i believe we need to figure out the way to create a strong bilateral relationship or it will hurt both societies >> thanks for rolling with the punches. >> where were you and i when paypal got formed? >> what a great investment to make $3 to $5 billion. taxes

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welcome back comcast is said to go on an m&a spending spree to better take on the streaming industry as our parent company, saying this is purely speculation

saying they are not in need of any new assets right now joining us, rich greenfield. good morning i just want to get into this story. effectively the journal says brian roberts, the ceo of comcast needs or wants to buy something like a viacom cbs or potentially a roku would you be in favor of either of those >> we wrote back in october and even talked about it that nbc universal and warner media made the perfect marriage that was creating the next disney was putting those two assets together. that's not happening because discovery is merging with warner media. it doesn't appear that comcast wants to come in over the top i

think the challenge in what i saw was reallytwo things comcast has to spin off nbc universal which i don't think brian roberts wants to do and two, they have to break the company back apart after three years of putting it together scale is more important. we are seeing it every day in the media space, no doubt nbc universal is out and happening anytime soon >> what do you think regulators would allow comcast to buy in this environment

if they wanted to buy mgm. much like they bought dream works a couple of years ago. >> right we are already watching them take a look. >> doing a major acquisition without spinning off, it is very slim the doj has a bad taste from the last go around it's unlikely. remember when they tried to buy time warner cable. i would be very suradvised if a democratic doj allowed the major corporation. that's why they went overseas to sky. >> what about a roku >> look, we've been banging the drug four years ago when row due was a $6 billion company before they went nationwide to attack

and buy it roku is now a $50 billion. you probably have to buy it for $70 billion or more. comcast is already going it is a very large acquisition now. comcast sort of missed the boat on that. they should have done it years ago. i feel like it is very hard now. >> you've told us everything they can't buy what could they buy? what about lion's gate >> they could buy smaller assets i think the real story is share holders, they want the company broken into two pieces they want the cable business to look like charter and nbc universal to be this asset that could be acquired or could grow

through acquisition but i this i they clearly see how much value could be unlocked. they just told you there isn't enough synergy so i think it is less than doing a huge acquisition right now. i don't think share holders will prove it and they see the value unlocked >> rich, we'll continue to talk about this, i am sure and we'll look forward to more >> brian is not going to just throw us away? he likes us too much, i hope >> if i were a ceo of a company, i get bored just with the pipes. i want to make decisions i want to meet movie stars coming up, the latest on

bipartisan infrastructure talk i'm kidding. we'll be right back.

good morning, stock futures

point to opening gains we could see record highs right out of the gate. a bipartisan group of senators says they have a deal on framework. 21 lawmakers will try to win president biden's support today. speaking to key negotiators in a couple of minutes. and when this crypto expert talks, you need to listen. katie haun to talk about bitcoin and the china crack down so much more the final hour of "squawk box" begins right now. good morning and welcome back to "squawk box" on cnbc

us equity futures are strong this morning everything is close to new highs. treasury yields are still under control. a good call by tepper. i don't know what it means 1.487% people send me charts that say absolutely it is still the qe. it is truly not there based on inflation. >> talking about how when we were looking at it going from 1.75% right before tepper's call everybody was convinced it was going to head right to 2% and beyond he now things everybody thinks it is never going back above 1.5% and that may be the wrong call too he'll be on tomorrow to talk about this other stories investors

might be considering today, buzzfeed considering going public via spac. it could merge with 890 5th avenue partners. founded by andrew rothsteen. the name of the spac named after the location of the marvel superhero. talking about digital partner networks jp morgan telling employees it may require them to get vaccinated sighting reports from jamie dimon and other bank leaders requiring employees to fill out a questionnaire. all employees required to

schedule regular office visits and mandating all employees to be vaccinated. eli lilly alzheimer's treatment may be qualified for expedited development. and out this morning, announcing a $2.2 billion fund dedicated to crypto investments. it is the largest crypto investment ever. managed by katie haun. joining us in an exclusive

interview coming up a little later this hour. conversation you don't want to miss talking about that new fund and where she sees opportunities as well as what's happened this week and the past couple of months with the price of bitcoin and china. katie haun, a former prosecutor, by the way after agreeing to a framework of new infrastructure, a group of 21 senators will head to the white house today to see if they can sell president biden on the deal. joining us now, rob portman, one of the lead senate negotiators on this. and democratic congressman from new jersey the cochair of the bipartisan house problem solvers caucus the market is up today it may be because there is more optimism about a bipartisan deal actually getting done and seeing that additional money going to infrastructure this morning. i've been skeptical but hearing

where you are right now, it does sound promising. you've got chuck schumer and nancy pelosi basically sounding like they are signing off. what is the early read from the white house as to whether or not the terms would be acceptable? >> senator, i'm sorry, we didn't have your mic for a moment could you answer again here in a rare appearance. working with josh and his team over in the house, we'll try to keep this as broad as possible we'll be going out to our colleagues on both sides talking about the specifics.

this is about long-term investments. make it more efficient and productive it doesn't affect inflation. it is the demand versus supply side it's good with the economy consistent with the president. president trump had an ambitious $2 billion this is about a trillion over the period with new infrastructure i'm hopeful we'll get a positive response from the white house. most important, it is good for america. >> i have to say hearing that the house and senate are both signing off on this. at least it sounds like that ifs that the case, it gives us a higher chance of passing >> becky, this is great news

we've been working together on getting a bipartisan deal done on physical infrastructure as well as roads and energy th t thishas been working closely for months we've put out our package on bridges which is similar we've been working together, which sounds crazy democrat, republican across chambers is crazy but this is how you govern we've been talking physical infrastructure trying to get it done for years now and we are now inches away. i want to thank the senator on his incredible leadership on this >> and we've heard bernie sanders is working on his own package and one that just be

voted on and only need majority. and the democrats doing it alone. a bigger project closer to $6 trillion $4 to $6 trillion. my question, senator, i'll start with you on this congressman, you can weigh in on this too where are the votes? if you move forward, you lose some of the progressive votes on the left you have enough to make sure your package passes. how are you saying your package would play out >> we'll see we started with a proposal with president biden which was $5.6 trillion compared to our package is about a trillion. most of it had nothing to do with the hard infrastructure josh was just talking about and had huge tax increases

$2 trillion of increases on the corporate side none of this is in this package. this is core infrastructure and no new income taxes. that was our goal as republicans and democrats to pull together to do something in a bipartisan way. my hope is we can keep that group together in terms of reconciliation, i'll let josh talk to that. democrats are going to move forward with a broad reconciliation bill with tax increases, most in the history of our country regardless. my sense, infrastructure separately, makes it more attractive for moderate democrats but i'll let josh answer that. >> thanks. first things first, let's get this done and over the finish line make sure we can get this out of the house as well. we have a very good bipartisan group for that we'll need republican votes not just democratic votes to get this done. listen, we'll see what's next

and what is up before us not seeing any of the specifics of the other plan. >> there are some that thought biden's plan was aggressive. >> i'm not exactly thrilled with lots of new taxes. i don't think that's the right approach coming out of the crisis we faced. i'm focused on getting taxes down in the state of jersey and making things more affordable. what we should do is get the physical infrastructure package over the finish line and reassess where we are. >> suggesting that maybe senator sanders bill would allow for the deductions which is more important?

getting deductions or is it more important you have the deal you move forward with? >> the bottom line, woo el have to look at the totality of that package and see the impact on my package and on jersey. and also what else it is hard to talk about these things in theory the fine print which is on the physical side and taking a long time making sure we are investing on the right priorities and dollars. being responsible and doing this the right way is much smaller than throwing a lot at it without a real strategy. >> josh, sounds like you are folding on the salt ultimatum.

have you changed your twitter account. >> i know you are closer to bernie than i am >> i met him on a train once rob, what's going on with manchin? is there something where he'll give in on a lot of important stuff we think he's going to stand firm on? is there some perk or way he's going to backtrack on all of those promises when he gets something he wants for west virginia or god knows what what do you think? >> you'll have to talk to joe himself, joe >> he's not here but you are >> there is a lot in this package for infrastructure for west virginia and ohai io and ey other state. this is going to be helpful in

terms of the economy of west virginia i will say that he's strongly s supportive of this package the democrats focus on what is important for this economy and raising taxes right now. in the time we finally have a tax rate the corporation and the workers. based on the budget office and other analysis when you raise those taxes particularly raising those five times higher than in 2017. it will hurt our workers in terms of wages and competitiveness. >> some things here on our show. i'm addressing both of you on this one of them might be, and you saw the propublica piece and i don't agree with that piece.

let's say you have assets that have appreciated over time you are either going to leave to your heirs or give to charity and they never see taxation and what about borrowing against those assets and funding lavish lifestyles where you have income but it is not reported republicans in these loopholes are many times nonstarters would you be open to addressing those issues, rob? >> the issue would probably be one democrats and republicans are likely to talk about they are relying on and borrowing against their assets and in some cases capital gains taxes. the focus i hope we would have going forward, which is let's not put our small businesses and farms in a place where they

can't step up with the estate tax. that's what is going on here it is harmful to the backbone of our economy. that's what i'm concerned about. you don't want to go there josh said it well. we are coming out of the pandemic we are seeing a nice recovery. we have to focus on the infl inflation issue and ensure we are doing the right thing. before the pandemic, we had the lowest poverty rate. low unemployment for blacks and hispanics. we need to get back to that. >> senator, just a question as you think about state tax in the context of small business. we should know on the farm side, it is a very small portion of the issues that actually would get hit.

maybe you could create some kind of exceptions around it. i always say to myself, is a lifetime of not getting taxed. is it enough to say millions goes but if you have a small business at some point, the family who owns it or the individual who owns it would pay some portion of tax on it. they are getting taxed every single day these folks aren't i'm trying to understand how to think about that >> it is not an estate tax issue. that's a tax issue that's something i think we could look at and could address. to that farmer, you are talking about, it could be a big part of the estate tax looking at the effect of the

proposal and both the biden administration and bernie sanders had imploded it will be incredibly damaging to small business. that's what our country runs on. 95% of our companies are pass through companies. you have to be careful it will get us out of the pandemic in a strong way >> senator portman, congressman. thank you for being with us. good luck today. let us know what happens at the white house. >> thank you >> thanks, guys. >> josh is unique. >> he's part of a caucus of 30 something members of the house trying to work for both sides.

>> he said he'd sign off >> coming up, a special interview on bitcoin and katie haun will join us. she's got a brand-new $2 billion crypto venture fund just announced. and jobless claims, durable goods orders and first quarter gdp. stay tuned you are wchg cnatin

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welcome back take a look at the futures right now a haeftd open. dow up about 80 points dow higher and s&p about 22 points higher. a lot coming up this hour. we'll go inside bitcoin's price collapse with a true crypto authority. coin base's member katie haun and e thnew fund in crypto you'll want to hear what she has to say

welcome back for the latest edition of sector nomics, a look at energy >> the third smallest sector in the s&p 500 but has been massive so far in 2021, the biggest beneficiary of the so-called reopening trade banking on some

of the cyclical assets the energy sector is up a whoping 44% just on the year to date basis it has been outperforming all along. out fairly wide with out oil and gas is outperforming in the s&p. looking at where the outperformance is coming from, it is not necessarily the meganames driving the action at least with the overall mix here. they are the biggest weightings. but marathon oil, diamondback and devon energy for many of these, it is exploration. looking at some of the laggards. it is oil services companies doing a lot of underperforming

nov ink up about 11% baker hues is up roughly 13% c c abbott oil and gs. those could be playing catch up at some point if the energy sector does catch even more momentum than it has seen in the last year. still hard to believe a year plus ago negative oil and now energy stocks are just crushing it with regard to the energy market these days. >> thank you, we've got to run durable goods. you are watching "squawk box" and this is cnbc

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welcome back to "squawk box. breaking news. quite a bit of breaking news let's start with advanced goods on trade downs $88 billion, very close to expectations. retail down for may ward .08 we have a revision from 1.6 down now to down 1.8. if we look at wholesale, different scenario completely.

different part of the pipeline that was up 2.3% -- i'm sorry, that was up 1.1% better than expected durable goods made preliminary things that last basically three years or longer. washing machines and whatnot a bit of a pop back. up 2.3 just under the 2.4 of january, so close to the best levels of the year as we start to see these numbers come back. in the rearview, we have minus 1 1.3 still unrevised. transportation, you can see transportation played into this. only up 1.3. durable goods now at minus .8. we look at capital goods nondefense aircraft, a proxy for business spending could anything be more important at this point?

down one tenth of 1% not good however, look at last month, it jumped up to 2.7 that's really a lofty number we have to average that out. gdp, a good look around gdp. 6.4% let's go to initial jobless claims 411,000. down from last month it is a bit of a disappointment in a way because 375,000 is still the best post covid. that was the first week. last week is the first week in june we look at continuing claims, we finally break nicely under $3.5 million $3,390,000 that is indeed a post covid low. a low is a good thing.

subtle revision from last week claims from 3.518 to 5.534 data looks pretty good all told. i'd like to see some of these inventories on retail build up a little bit it looks like that is coming down the pipe. 148 for 10-year is a basis point. keep things simple we don't want to test the high 130s from 2012 and 2016. no such thing as triple and quadruple bouttoms. it is a good thing i'm looking at a closing basis up on top. use 160 on the pivot that will keep you out of trouble. joe, back to you >> thank you joining us now for more. a lot of data. nila, you point out the pandemic recovery is firmly in tact but

we are still missing about 7.6 million workers. until we address that, i don't know if we look at it as completely healed. do we need more stimulus to get people back to work or less? >> good morning, joe we need better jobs. a lot of the jobs that have been lost in that pandemic hit were low-paying jobs these jobs had lack luster wage growth. even in a 10-year expansion, it took year nine to 10 before you actually saw wage growth fast forward a year later, these jobs require close physical contact. the prevailing wage no longer cuts it. what we need is a reskilling of

these workers into better jobs so that their position to go through the recovery and into the post pandemic recovery >> the prospects for gdp, you saw unchanged the third we saw at 6.4% first quarter. in your view, and i'm looking at some of the notes here you talked about is it possible that some stay at home jobs actually add to productivity and there for some of these gdp numbers and could you explain why? >> there is a wedge between the fast and furious growth we are seeing in the first quarter or expected in the second quarter driven by technological and investment over the year

allowing workers to be more productive at home we found people are actually working a lot for free for their employer to make sure they kept their jobs that added to productivity gains. this added to the web as well. we won't see continual productivity increases businesses have to keep their eye on the ball if they want to sustain the gains over the year, that means content investment. that's why those investment numbers are so important because they really feed into the growth >> the claims numbers that continue to improve and totals we are seeing, what you want to do in terms of retraining, that's not going to happen today, tomorrow or the next three months are there still positive signs you are seeing in these numbers that even without some of these things we need to do that the

labor market will heal further >> absolutely, joe we'd love to see this jobless number have a decline with no bumps in the road. that's optimistic but not realistic but we are seeing improvement precisely in the places hardest hit leisure and hospitality have job gains. we've seen remarkable scientific advancement with three vaccines put into the market. over 50% of adults taking at least one vaccine in the u.s that has laid the groundwork over the course of the summer. there are still barriers it could be generous unemployment benefits and ongoing health concerns. we'll see which barriers stick i believe those barriers of child care are the most res nant

for women who are looking to the fall to reenter the workforce. >> nela, richardson, chief economist at adp you probably know about this next adp number. can you tell us how this is looking. can you give me a thumbs up or down >> no, joe, i can't but it is great to be with you stay tuned >> can't hurt for trying >> you tried >> she knows she knows. she didn't slip up good for her >> coming up on the other side of the break, an interview all cryptocurrency investors need to see, katie haun will be helping to lead a multibillion cryptocurrency fund. crypto vatity oliland so much more you are watching "squawk box" on cnbc

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is. welcome back check out the price of bitcoin up 2.5%. some new stepped up efforts by china to reign in crypto mining. announcing this morning, it has

raised $2.2 billion to form the largest crypto fund to date. joining us now partner katie haun co-leading this fund. a form prosecutor. you have a lot of views going on in the regulatory world. speak to this moment, if you could because we have seen remarkable volatility over the last week or two or several months with some of the moments of euphoria and other moments where we've seen a lot of challenges as well >> good morning, andrew. with respect to the volatility you mention, we've been in a space for a long time. we are long-term investors it is important to note this is not a hedge fund we are making 7 to 10-year bets.

this is relative to the opportunity we see which is not just financial use cases. we see a lot of opportunities across infrastructure, gaming, dfi, nfts, digital goods again, hear the message is we see this as a lot of categories. >> katie, to put a fine point on it this fund isn't vesting in the currencies themselves, some of the tokens i assume some of the businesses are tokenized? is that's right. we are vesting in both like crypto fund one which is three years old and two, which we deployed just over the last year we are absolutely vesting in tokens and protocols and equity investments in businesses. iek open sea, uniswap, we hold the token there.

coin base. there are a mix. equity investments and the tokens themselves. we think tokens are really the future of crypto >> you are a board member of coin base we should mention. let's talk about what happened in china with respect to bitcoin and what do you think it portends for the idea of decentralized currencies >> it is interesting with china, we've seen this movie before, actually for some viewers might not remember this news who weren't following this space back in 2017, china made similar moves to crack down on crypto. back then, it was mostly directed at bitcoin, they banned digital exchanges in china for trading. in those days, it caused market correction from around $4,000 to

$3,000 i was surprised this took them this long to do this time. let me tell you why. china is all in on crypto. make no mistake. xi jinping declared crypto and blockchain as a top five national priority for china. they are all in on crypto. they are all in on their brand of crypto, which is a closed permission system. at odds with the open position we see bitcoin is one of those. i think china's moves reflect the staying power of open, decentralized staying power like bitcoin. we've seen this happen before. i think china is going all in in a big way. this is big for western society to lean in >> as a former prosecutor, i'm hoping you'll also weigh in on the remarkable number of ransom

wear there is a number of them going on even behind the scenes that we don't even know about and how much you think that is a function unto itself of crypto >> i don't think it is a function unto itself of crypto as you mentioned, i was a federal prosecutor over a decade i prosecuted some of the largest online money laundering cases and computer crime prosecutions as well. what i can tell you is that crypto is a step level function improvement above the exiting financial system in terms of traceability people often say how can that possibly be? the fact is when crypto is used, it leads to we call dig call

bread crumbs i can tell you firsthand used blockchain technology to solve crimes there is a false sense of security in traditional banking records. the bank secrecy act is decades old before banking went global and digital in the way it has. actually obtaining information -- >> katie, if you are right why are so many criminals using crypto to run these hacks? >> you know, andrews, criminals are often beta testers i think it is a myth that bitcoin was good for criminal activity what you see now, you see investigators and prosecutors solving cases where crypto is used as the technology of choice

by criminals colonial pipeline attack, it is unprecedented that a government would recover criminal proceeds in a month from when it happened completely unprecedented i would say here, digital bread crumbs there are industries, billion dollar companies are being built around blockchain analytics. several companies the government uses getting back to the picture of this fund, that is one use case. financial use cases. what we here is very exciting with the crypto economy. all of the other new business models being created this is a great way. we see it as democratizing for creators content creators

in financial use cases and other use. some obsess about prices, we look at infrastructure in 2018, we looked at daper labs the team behind crypto kittys focused on one thing daper labs is the team behind top shots doing $6 billion in revenue a year there are other businesses beyond just financial use cases in this case we are excited to double down on those. >> when you see an nft and deep hole sells for $69 billion it creates a lot of question where people say is this a bubble what is your take? >> when i think about the $69 billion sale stepping back on the nonfundable tokens it has brought an entirely new class of consumer in a way we think is really exciting

it's a new class separate from a financial use case you mention the sale, you look at the art world, obviously value is in the eye of the is jt ordinary digit at goods. when i see digital goods, i mean goods that you can actually own. my take is, with you thing that's so interest for digit at artists, and of course nfts are more than just artwork they're collectibles, could be pieces of media or content, we'll see a lot of other use cases, but the creators can program these things so when they're resold, the creator gets a cut. middle men are removed that's so important and interesting. there's an artist who, you know, sold a work of digit at art for

$100 later it was rear sold and the artist got $11,000 of the original sale. they all still do require some kind of token or currency than the -- and i'm curious if you think the u.s. government is going to regulate this in some ways, because none of it works without that ucomponent. do you think gary gensler will >> i think so. we welcome at andreesen. we meet with founder every signingle wee and we see they want clarity

as part of our announcement today, we have always thought that regulation and consumers protection is important in the case where finance -- but we are doubling down on regulation and policymaking with this new fund. brought on bill hinman from the s.e.c., so we want to partner with the government and find sensible regulations we don't want over-regulation, but welcome some, because we think it touches important parts of the economy >> katie, we wish you lots of luck we hope to follow your progress with all of it thank you for joining us thank you for having me, andrew. great to be here. >> i think we spoke to what may be the most powerful woman in silicon valley at the moment. >> excellent good to hear from here jim, i wanted to ask you

about some of the things we just talked about in that conversation one of the things that katie said is that china is doubling down on crypto, therefore we should do the same in the united states that's a little counter to what we've been talking about and your concern with what community is doing with crypto right now. >> right i think china, if andrew is right, and we just spoke to the most power woman in the united states, china will say we have to disenfranchise her. i think the chinese are not our friends. if we have billionaires trying to control currency, they'll just shut it down. they want their own currency the. i think everyone who tries to game china fails i think everyone who should watch eunice yu with the paper that they shut down. that's how an institution falls

apart or democracy falls apart so they listen to our network and decide, you know what? we like american billionaires and on the oligarch, and so we'n to support them? totalitarian society can do whatever it wants, including that crypto. >> i was trying to read between the lines. she said they may not necessarily like bitcoin they like their own closed-circuit sort of crypto that they can track and watch. i don't know that that's good news for the rest of the cryptos. that's good news for china. >> look alternatt what's going . a lot of traders are mining traders, trading crypto. i'm tired of people saying china

is okay, they want their own crypto and that's fine then why wouldn't they shut down our crypto what, they said competing currencies it's china that is a country controlled by the party. i don't think the party particularly likes something that's as powerful as our crypto that's traded there everybody says that. i remember when hong kong was taken over people said don't worry about t. democracy is in good shape people are saying that about taiwan what makes us think that a totalitarian society coming against the united states and we're supposed to feel confident? we're trying to game them? >> it's interesting. >> hasn't anyone ever worked

with them? >> that's what takes a market, differs opinions. >> i want chinese bitcoin, if they let us in the country is nots a democracy. it's a dictatorship. >> jim, thank you. we're going to see you in a few moments. >> they probably would let us -- not us -- oak. okay. >> we have some stop stocks to watch ahead t onielofhepeng bl. stay tuned you're watch "squawk box" on cnbc d stre ngthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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welcome back to "squawk box. dom chu has some movers. >> headlines coming a lot of different ways first, with eli lilly, still up about 7.5% on some of the positive alzheimer's drugs darden restaurants, 90% same-store sales increase, and rite aid from the krecfo seeing

vaccine deceleration happening so some of the headlines to watch. back over to you, joe. >> we're going to give you a raise. that was your third appearance today, dom actually, i can't do t that make sure you join us tomorrow "squawk on the street" coming up right now. >> good thursday morning with futures pretty solid here, big day, on infrastructure at 11:45 -- our road map begins with embanks supplying the pressure