good morning we have a deal president biden announcing agreement on an infrastructure plan with the bipartisan group of senators. we'll show you what's included and whether we really do have a deal hope springs eternal. nike shares will help lift the dow. you can see it already the retailer soaring after the big earnings report. big numbers fueled by record revenue with the largest market in north america. and ecommerce is getting more expensive for shippers. how fedex is responding to rising demand and higher labor costs. it's friday, june 25th, 2021 "squawk box" begins right now.

>> good morning. welcome to "squawk box" here on cnbc i'm becky quick with joe kernen. andrew is off today. we start with the markets after the infrastructure deal pushed the dow higher by 320 points yesterday. 322 actually it was a gain of 1%. the nasdaq and s&p 500 closed at record highs i want to say 26 ofr 27 check out the equity futures green arrows again dow indicated up by 108 points joe mentioned nike the big gainer we will talk about that in a moment nike alone is responsible for 100 points of the gain in the dow. almost entirely fueled by nike and strong sales there s&p is indicated up by 5 points. nasdaq indicated up 29 if you check out the treasury market, the 10-year yielding

1.492% let's look at the "squawk stack" this morning lots of stories to mention infrastructure bill. we will talk more in a moment about whether we have a deal or not. the market is buying into it caterpillar and 3m and vulcan materials. a construction producer. all stocks up sharply. the gains this morning caterpillar up 1.1%. vulcan up 1.5% microsoft closed above $2 trillion for the first time ever putting it in a rare air microsoft and apple with the market cap greater than $2 trillion tesla was the biggest gainer in the nasdaq more than microsoft. it was up 10% in the last three days and erased the losses it

has seen for the year at this point. >> $2 trillion ten years ago. you do the compounding and rule 72 i shouldn't be surprised t you would figure more or maybe a lot sooner than ten years. mike nike with earnings of 93cents a share. you add and carry the 1. i don't know >> it was phenomenal >> revenue of $12.3 billion. beat estimates of $11 billion. sales more than doubled in america to a record $5.4 billion. you will see that some things were pre-pandemic.

they were up an unbelievable amount the company was selling more goods at full price and relying less on markdowns. digital sales up 150% versus the same quarter in 2019 not last year, but the same quarter in 2019. that's pre-pandemic. exceeded expectations. >> first time in the company's 45 50-year history. it doubled because everything was shutdown a lot of the stores in 2020, you know, went from $6 billion to $12 billion. all of the stores in the first quarter a year ago were closed down they have done a better job of reaching out to consumers directly that's a huge change that means more trouble for retailers. when the brands can reach directly and you don't have to go to the store to get these

things. >> i used to think about sam walton how one man can change the world. it happens a lot phil knight. what if phil knight had never been born in "it's a wonderful life" in bedford falls what if phil knight had never been born? >> did you read "shoo dog" his book >> no. nike -- >> they were competitors he fought the whole way through and grounded it out. to get to the level to create this the idea of having a dow created in somebody's lifetime watching that company get to those levels there are a lot of them. microsoft. home depot intel. a lot of the companies created and in the founder's lifetime achieved this status. >> one person can have a

consequential life if aliens are watching, they must think wow it's a big world things can happen. it's really small compared. >> i like how you think about these things. >> i've got issues i saw a guy with a t-shirt on and i wanted it. it said "i have issues." i was in the gym someone said ilove that shirt. i need one of those. who doesn't need it? >> i will find this for you. >> i have issues >> we have a developing story. we have been talking about this. president biden announcing the white house reached a deal on infrastructure with the bipartisan group of senators >> we have a really good meeting. and answer to the direct question, we have a deal i think it is really important we've all agreed that none of us

got what we all wanted they gave more than they were inclined to give in the first place. this reminds me of the days we used to get a lot done in the united states congress we actually worked with one another. we have a bipartisan deal. that means compromise. >> the deal includes $579 billion in new spending. of that, 1$109 billion to roads and bridges. $266 billion to freight and rails. $15 billion will go to electric vehicle infrastructure and $73 billion to the power grid. $65 billion for broadband and $55 billion for water infrastructure to pay for it, the proposal calls for the irs to increase enforcement to ensure wealthy people pay the taxes that they already owe under existing law it redirects unused state and local coronavirus relief funds

to infrastructure. it proposes public/private partnership for bond funding the future of 5g spectrum sales. the strategic petroleum reserve. this is moving a bunch of deck chairs i would think some of these were things that were allocated for other resources or for the general budget it did look like a bit of chicanery. >> this is the way -- as you said -- we'll talk about it. >> 21 senators have backed the framework. 11 republicans and 10 democrats. they will probably need to win support from democratic leaders and win over the vast majority of the democratic caucus to get the 60 votes they need to pass the the bill in the senate the lineup of reaction to the deal throughout the morning and

including transportation secretary pete buttigieg >> to keep the republicans on board, you see there is no tax increase anywhere. >> right. >> here's what the president said about it. i didn't get everything i want that's in the other bill what he wants. this is what we agree on today he goes on to say, if the other bill doesn't come on my desk containing the rest of the agenda and if this is the only one that comes, i'm not signing it we talked about this earlier speaker pelosi had similar comments she said this. i said there won't be an infrastructure bill unless we have the reconciliation bill first to go through the house. plain and simple >> the market is trading up on this as if it is a done deal and happening. i hear stuff like that and it makes me think it will not happen. >> how about if it is really happening. the market -- more money

spend, spend, spend. another trillion it loves that. >> $579 billion. >> when does it become -- let's do $6 trillion does the dow then go up another 20% on the $6 trillion where is the difference with the $1 trillion? >> the federal reserve raises ra rates. >> between $1 trillion and $6 trillion someone will sit up and take notice. >> federal reserve will take notice and the market will take notice it will be fine until inflationary and we crackdown on rates. >> any stimulus is taken positively with interest rates this low and you wonder about it there is an interesting piece if you read it. i'm fascinated by manchin and his power right now and the interplay with schumer and manchin.

they are doing this weird ritual they want to keep on each other's good side, but there is disagreement manchin bought a houseboat called "almost heaven. it is moored on the potomac river. >> are you implying monkey business >> no, no. it's nice if senators and politicians would have a couple of cocktails >> they might do more bipartisan deals. >> haven't been doing as much lately more manchin to do the reconciliation they need 50 they need all 50 they can't lose a person on reconciliation he said i'm not for the $15 minimum wage then with the voting bill, he wasn't for that. schumer gave him one thing in the amendment. he stayed on board he stayed with the caucus. >> we were discussing this this

morning. i'm shocked. gambling taking place here >> everything they say is a bargain. >> it is horse trading so they can make their constituents happy. when we talked directly with josh gottheimer. i said it in that language can they buy your vote >> all these huge issues we have, if it comes down to something in the house for their const constituents. >> schumer is good at horse trading, pelosi is good at horse trading. biden knows it he was in the house for a long time >> the president has been whispering a lot. >> we talked about this, too he is not the first weird president. >> he is whispering a lot. >> the last one had some weird things, too. >> weird things we don't know about. >> weirder than that. >> some of the weird things may

not have been true coming up, get ready for the trading day ahead. futures are up triple digits a lot of that is nike. later, this would be great we were talking about the fed. economist judy shelton is here to talk about the infrastructure deal that's at 8:35 a.m. eastern. "squawk box"s mi rht ck icongig d it. that's great, carl. but we need something better. that's easily adjustable has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management.

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stock futures are adding to yesterday's solid gains this morning with the dow up another 100 points nasdaq up 25 record territory s&p has well all in the green after yesterday's infrastructure agreement. s&p 500, as i said, and nasdaq, both at records after the deal was announced. joining us now is meghan and t tony lead portfolio manager for the equity portfolio meghan, you in terms of the infrastructure deal, we are all talking about. you think the market took solace because of some of the details and that is that it looks s lika free lunch is there anything such as a free

lunch? can we spend $1 trillion with no new taxes? >> it is just what happens to the deficit and what you see long term. i think the markets are right now taking reprieve that we didn't have taxes in there there is no gas tax. no tax hike. also some of those things that were not infrastructure were not included in the plan. >> you think that the market, and you mentioned some of them, the home care giving and call it climate change i don't know to call it climate resiliency or climate justice. larry fink may know. he knowsabout that stuff our other guest. because those things were not in there, you think the market was positive about that? >> i think so. if you start adding more of that stuff, that is where you worry about how to pay for it and then we talk about tax hikes. >> tony, i was kidding a little

bit. climate justice or climate resiliency does larry know? i love those terms i want both. i don't know if i'm asking for too much i'm kidding. does this point to a value trade for you? >> it does one thing i would point out on the infrastructure bill is these are things we really need and do enhance the productivity when you think about government spending, this is government spending at its best i point that out in itterms of the value trade, that deal is robust with or without the deal i look at the economic cycle we are still in the early stages of the economic cycle. value does welcoming out of recession into recovery. the second thing i look at is valuation spreads. the spreads between the cheapest and expensive stocks those stocks got really wide

this cycle they narrowed some since the pfizer vaccine in november they are still really wide by historical standards that tells me there is room to run. there is stimulus growth this helps propel that trade into the future. >> megan, you point out and it may not be obvious in the logical way. the value trade, if it does continue to run, it is dependent on interest rates going up why? >> you have seen that over the past couple months the value trade lost momentum. i agree. we like value long term for all of the reasons mentioned if you look at what happened over the past couple months, growth has resumed some of the leadership why? interest rates haven't moved we have been stuck in a tight trading range the past few months that has given growth and tech names the ability to run in the end, i think you will see

interest rates move higher as mentioned, the economy is doing well we are in the early stages of the expansion. this bodes well for cyclical and value stocks. >> tony, i don't know the infrastructure bill. there is another bill that will be reconciliation. you don't know how that will play out are you assuming there will be something that is left that goes toward some of the areas and that's why the market's up >> so, like i said earlier, i don't think the value trade is dependent on this bill getting passed that said, i think some version gets passed through bipartisan mechanism, which is the preferred, or through reconciliation i still think we get this bill either way it is the question of how congress passes it. >> i think it might be both. we can't assume it will be just

through by pipabipartisan at least at this point, speaker pelosi and schumer and president biden all saying we need reconciliation bill. even before the infrastructure bill it will be something to behold we can't divorce washington from wall street. we can't megan and tony, i want to thank you both did you realize we update people on what day it is. it's friday. are you aware of that? >> thank god it's friday >> you know, that's a good expression i think you just came up with that we should say that, megan. thank you. >> have a good weekend >> you, too. >> thanks, you too before we head to break. we want to update you on the building collapse near miami president biden approved the emergency disaster declaration crews are digging around the clock in surfside frantically searching for survivors in the

rubble one person was killed and 99 people are unaccounted for shepard smith will be live tonight. you can tune in at 7:00 p.m. eastern time he was there live last night i was listening to the broadcast this morning as i was coming in because they replay it at 4:00 a.m. talking about how they were snaking long lines with cameras at the end with microphones and they can pick up sounds of people breathing where they are searching for survivors. >> they are looking for clues as to what was happening. it was sinking, but sinking all the way back to the '9'90s two millimeters per year >> cracks. >> that were not fixed

>> i believe just listening to the interview that shep was doing talking to an inspector. there was working done on the building the 40-year inspection the concerns of the stability. a lot of material put on the roof for the repairs he had speculated that perhaps if it were placed too close or stacked on ptop of each other, that could break a slab. you could see it leading to the slabs beneath it it is very early speculation they were talking about that and how that could have been a potential cause. >> a lot of families involved. must be torturotorturous. i could not help but think about what it must have been like to be in that building. >> most of the people asleep at the time it happened you hear the rumbling. >> 12 seconds and it was down. terrible >> looking through the pictures

of the people they are looking for is heartbreaking you can watch more of that tonight with shepard smith when we come back, auto news triple play. big sale of tesla stake by the carmaker's suppliers. and ab inbev carlos brito withhe t exit interview. "squawk box" will be right back. this bathroom is too cute! this one is too cool! [ grunts ] this one is just right. [ grunts ] oh! find your just right at kohler.com. (vo) while you may not be running an architectural firm,

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time now for the executive edge the headlines from the auto industry tesla. the electric car company sued in the california state court over

fees at super charger stations a driver argued that the company broke the promise to provide free charging for life when it imposed fees on customers who left the cars at stations too long and panasonic sells its stake in tesla for $3.6 billion in march. it may use the cash for investing in growth. panasonic makes batteries for tesla. the stock sale will not change the relationship can we back that up for a second one guy wants to sue them because he says they are breaking their promise for free charging for life because you get a fine if you leave it there for too long talk about a crank move your car so somebody else can charge it. >> we forget >> i can't believe we're doing a headline on this what a crank >> another article a deep sea mining company that

has a checkered past because it looked like it was a non-green company that ruined the economically sensitive sea floor. >> higher ecosystem. >> now raising a boat load of money. no pun intended. it is positioning itself as a green company. it is bringing up ev materials >> it's a better way of doing it than the way they mine it? >> it is hard to find these metals unless an asteroid. >> that is esg gone crazy. >> it is positioned. eager investor stretch the meaning on green deep sea mine. it will be selling into that market >> we are green. >> green in everything >> all right >> block chain >> remember any company that

wanted to do well, the pink sheet companies. a bicycle. >> something else. cannabis was good for a while. it didn't have -- >> yeah. chinese ride sharing giant dp didi looking for a $60 billion evaluation in the up coming ipo. it plans to list 72 million shares of class a common stock on nyse. >> take your pick. take your pick >> what are you looking at >> take your pick. we were talking about that this morning. >> we're like the gorillas at the zoo. >> i feel like a fish in a fishbowl nothing is happening in times square and it was boring do we like this? >> i don't know. >> nudity. defecation >> pounding on the windows

yesterday. >> people arguing. hits arguments. drug deals. >> new york's back, baby >> it's great. >> the things that happen before 5:00 a.m. here >> thanks to blah, blah, blah. coming up, breaking down the bipartisan infrastructure deal >> people are staring at us. >> eric adams cannot get here quick enough we will take you live to washington for the spending breakdown. and reaction from kelvin king founder of osprey management air force academy grad great defensive back in his college days we'll be right back. >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. ere.

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president biden agrees to a revised infrastructure package about a bipartisan group of

senators ylan mui joins us now with more. that's a term i'm not familiar with, ylan what does that mean? have you looked it up? googled it >> reporter: we have been hearing a lot more of that word, joe. president biden is throwing his support behind a bipartisan framework for roughly $1 trillion on infrastructure, but there is a catch democrats also need to pass the rest of the agenda as well this deal was negotiated with five republicans and five democrats. it calls for $109 billion on roads and bridges. $66 billion on passenger and fr freight and rail and $65 billion on broadband and $7.5billion for ev president biden implored democrats to take the deal. >> the party is divided. the party is also rational they can't get every single

thing they want. all in the bill before them is good, will they vote no? i don't think so >> reporter: but some progressives have already dismissed the package as too small. they want to be sure a reconciliation bill gets done as well with investments in human capital and tax increases on the corporations and wealthy >> it is not going to be the case there is an infrastructure train that leaves the station and leaves child care behind and leaves green energy behind and leaves making billionaires and giant corporations pay their fair share we have to have the whole thing. not just cleave off a piece of it >> reporter: president biden would not sign a bipartisan bill unless the other bill makes it to his desk, too joe. >> that's not up to the republicans on whether the other bill comes to his desk they can control their destiny

unless you call joe manchin and krysten sinema this is in their caucus. they have to get together. >> reporter: that's the only way they can get the joe manchin and krysten sinema to vote for the reconciliation package is if they do the bipartisan bill. they are trying to apiece both sides to have two bills to work with >> thanks, ylan. for more on how it impacting small business owners, kelvin king currently running for senate in georgia. kelvin, it is good to see you. we would be remiss if we didn't start with a little bit about your back ground single mother. air force academy. your defensive background. i have seen video. you were pretty good you started a company. entrepreneur and now running for senate which seat down in georgia

it was the center of the universe about three months ago. >> georgia will be ground zero for next year's u.s. senate election a senate seat previously held by johnny isaacson. this year, this january, warnock won the special election we're up in 2022 >> i don't know if you get the nomination is herschel walker in the mix? who else is your republican competition to take on senator warnock down there at this point? >> right now, there are three announced candidates myself along with agriculture commissioner and another gentleman who was a former navy s.e.a.l. a lot of talk about herschel walker jumping in. i have been a fan of his for a long time. this is for a u.s. senate seat we feel we have the best

campaign and i'm the best candidate to defeat reverend war warnock. >> as far as infrastructure, and you have seen it because you run a construction firm. is this the right mix of things we are doing and are you gratifying this is mostly infrastructure >> joe, that is what i was concerned about initially. initially, it looked like amalgamation now they carved out a bunch of items. my concern rests with the reconciliation portion it is like the democratic party said okay, we are still going to push through the agenda. we will split it up and doing it twice. this is why it is important for the senate seat. under the reconciliation portion which will come later, that is a majority of the senate vote. there's not a supermajority required that is why it is so important to get the seat back for the

republicans. >> the country is divided. you look at georgia and what happened down there. some of the voting bill and -- i don't know where to start, kelvin what do you think of the voting law passed in georgia? you seem to be a product of american exceptionalism. i have to say it that way and what can be done in this country if you work hard there has to be luck associated with it. it is great to see what do you make of the environment? the whole environment we're in right now? politically? >> that is very concerning, right? what our campaign is based on and our theme is the american dream. i'm living my american dream and my mother's american dream freedom, opportunity and american exceptionalism.

you have to create an environment for that to thrive this voting bill is d disinformation georgia has some of the most flexible voting processes in the country. initially when we wanted to bolster voter confidence with the hb-202, it was by a lot of democrats and advertised as a voter suppression bill it couldn't be further from the truth. that's what is the issue here in georgia and across the country a lot of disinformation and misinformation you know, here in georgia, we have one of the most thriving economies. people are moving here from all over the country we have the strongest agriculture business in the country. you know, people want to come to georgia. there's no hesuppression in georgia. people are living their dream. i want to make sure the environment for the american dream stays strong that is due to participation and

integrity in the elections and low taxes to stimulate our business environment those are the things we want in georgia. >> kelvin, you are the suppeorte of the stformer president, president trump. i don't know how that played out with governor kemp and the issues that we saw down there. georgia is really an enigma to figure out what we used to think of with georgia. it was obviously the flash point for a lot of the issues. would you look for president trump support for the senate race >> oh, i would love to have president trump's support for the senate race. i think president trump likes winners. our campaign is a winning campaign it has a winning message like i said, the american dream. it is inclusive and united

message. there are a lot of themes happening and complexities in our election system and in our offices. the people of georgia are very concerned. our campaign's message has been received very well across the state. resonating very well it is a message of unity it is the american dream it will bring in young people. it will bring in mature people who doesn't want the american dream? you see people coming across the border because they want the american dream this is an exceptional country i want to make sure we maintain that environment. >> kelvin king, we will be watching we will be watching. i'm not sure everyone realizes we have another georgia senate race and it is not six years from now next year. >> that's right. >> thank you >> thank you, joe. >> you're welcome. when we come back, fedex

revealing the plan to increase shipping and other costs. and don't miss transportation secretary pete buttigieg with the reaction to the infrastructure deal and whether or not it's going to get done

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fedex shares are under pressure the company with earnings of $5.01. beat estimates by 2 cents. revenue was above. forecast fell below wall street. fedex said it was offset by costs for strong demand and higher labor rates it will increase capital spending by 22% to reduce shipping delays. when we come back, the ceo of rockwe will join us with reaction to the new bipartisan infrastructure deal. he has a deal of his own to talk about, too "squawk box" will be right back. n wall street. or disrupt the status quo. t-mobile for business uses unconventional thinking to help you realize new possibilities on america's largest, fastest, and most reliable 5g network. plus customer experience that finds solutions in the moment. and first-class benefits, like 5g with every plan.

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the industrials rallied after yesterday's infrastructure breakthrough, that sector has slightly outperformed the s&p 500 in 2021. let's get a view of the bill framework from an executive in the sector joining us is ceo and chairman of rockwell automation and rockwell struck a deal this morning to buy plex systems for about $2.2 billion in cash blake, why don't we start with the infrastructure bill. it sounds like there is a deal maybe, it also sounds like it could be more complicated than we assumed yesterday if we do have to wait until the reconciliation bill also gets passed what do you think? >> it is super encouraging that we did see bipartisan support for what i think is absolutely crucial to america's future well-being so there is a lot of work yet to be done, but the basic idea of

strengthening america's ba backbone, physical infrastructure, broadband, really important to the country. and it is very good from our perspective. >> what is the most important part of that in terms of funding, where it goes >> i really like the broadband provision. a lot of people forget that manufacturing is largely in rural areas of the country and so increasing that digital infrastructure for personal wewell well-being as well as for businesses will help us succeed in the future i believe. >> and let's talk about this deal this morning, $2.2 billion, flex systems, described as a leading software, cloud native, smart manufacturing platform operating at scale that is a lot to break through but it makes sense to me when you start talking about it being able to help enable manufacturing happening more quickly, give you a better perspective of what is happening in your supply chain

what does it do that is vital to business right now >> so rockwell with our alan bradley products have been in the heart of the core automation for manufacturers for over 100 years. so when you package food, you treat water, or you make vaccines, that is done with our products but taking the data that comes off of those automation processes and turning it into additional insight and useful information, that is what fplex systems is all about and they can do it easily >> when you mention supply chain issues, that really gets my attention considering all of the problems we've seen in the supply chain this year we thought we had a great global supply chain, but not the case when you add up a pandemic, problems with cargo, problems with shipping. all kinds of things that we hadn't anticipated what will it do to help manufacturing? >> manufacturers are trying to eliminate single points of failure, but not just within their own four walls, they have

to be able to look upstream into their suppliers. plex software helps them do that >> what do you think about the problems that we've had in the supply chain, do you think that these are problems that will be resolved by the end of this year, does it take next year or do we need to rethink the way we've been doing things with just in time supply some. >> the chip shortage is something that will be with us for a while and is a matter that we have to pay close attention to it is a matter of national security as well as the future well-being of manufacturing. and so when we cut through everything that the supply chain constraints have caused us, that is one at the top of the list. >> and what is the issue right now that you spend the most time trying to problem solve? >> well, supply chain challenges are on my mind, making sure that we're able to retain and add additional talent. right now talent particularly in certain jobs are in extremely

high demand and making sure that we're the best destination for that talent is something that i think constantly about >> what sweeteners can you throw in >> well, first of all, it is the culture of the company it is a place that people want to work, they can and they want to do their very best work and we talk about that all the time it is competitive compensation, but it is all the other things that come with the job because you spend so much time in your workplace, you want to have a little bit of fun and we try to help with that as well >> we try to do that here too. blake, great talking to you. thanks for your time >> thanks, becky >> and the company is based in milwaukee and they have about 23,000 employees big game tonight beg, big -- >> yes >> yes 8 1/2 points for the hawks coming up -- i don't know why i knew that. beer companies hoping to get a

boost -- >> because you have issues >> i was thinking earlier about nike and what, you know, what this online betting does i've never watched more nba. it just has to -- anyway, beer companies hoping to get a boost from reopening of entertainment and resurgence of bars and restaurants. ab inbev outgoing ceo will join us and also getting the green lhtig to fly passengers to space no thanks. 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,

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we have a deal, maybe. the president and a group of bipartisan senators striking a deal for roads and bridges we'll head to d.c. and also hit the stocks most likely to benefit. futures pointing to a higher open after fresh records for both the s&p 500 pand nasdaq and plus will the reopening of restaurants, bars an stadiums be a boon for inbev? we'll talk sales, inflation and much more. the second hour of "squawk box" begins right now

good morning and welcome back to "squawk box. i'm joe kerr then along with becky quick. andrew is out today. u.s. equity futures are up 119 points as you see on the dow with a strong performance from nike after better than expected results last night but here is what is making headlines, nike shares, as he was just talking about, are surging and company expect than expected profits and at current levelsmore than e dow by itself. fedex did beat wall street forecasts, but the ceo fred smith told analysts that operations are being impacted by an inability to find enough workers and that fedex will boost capital spending by 22% this year to ease delivery delays but also some increased labor costs which go hand-in-hand with the difficulty in finding employees

also this morning big banks are on the docket to watch they all passed the latest round of stress tests administered by the federal reserve. 23 were tested and the fed determined that all could survive in worst case ascenario i can think of some that they couldn't survive >> they run a pretty rigorous stress test. of course we've all seen things that we would not have anticipated, but they have done well >> we could think of things. nuclear oblivion in happ sgr happy friday, everybody >> and are wiwar of worlds. they are here, ready to come in, the slimy -- >> pushing our theory that we can say anything today >> do you remember what will smith was up against >> i do. >> they're here, aren't they

you're starting to think so. >> do you remember tom cruise one? >> i do. and i remember the series because the things that came were actually like those robot dogs . >> how do you think it compared to the original on the radio >> i loved orson welles. we were very close as a result, the fed said that it wouldnd temporary limits on dividend payments and share buybacks a great winston churchill story about that and orson welles. >> really? >> yes apparently someone dropped orson welles' name -- i don't know it is a great story. but even people hike winston churchhill can be impressed by hollywood types. >> this is you >> oh, shares of virgin galactic taking off the company received faa approval for a full commercial launch license, it will allow

virgin to fly paying customers into spaes folce and president biden striking an infrastructure deal with a group of bipartisan senators let's get more of the details from eylan mui >> president biden has endorsed a trillion dollar bipartisan infrastructure deal band it covers physical infrastructure, roads and bridges, trains and evs, broadband and the power grid but his plans to invest in human capital like child care, education, paid leave, that will move forward through the reconciliation process which means that it won't need republican support biden vowed not to sign one bill without the other. a win for progressives like bernie sanders >> i think the president made it clear, speaker pelosi that it clear, leader schumer made it

clear, let's me make it clear tt there will not be a so-called bipartisan infrastructure bill without a major reconciliation package. >> but senator gop leader mitch mcconnell says that is more like a bait and switch. >> an expression of bipartisan and then an ultimate on behalf -- you willultimatum on f your left leaning base >> democrats plan to work on both bills this summer, biden wants them on his desk before the end of the fiscal year >> and this is what we've been trying to digest today yesterday it certainly seemed like, okay, there is a deal, this is a big deal, it is going on get done and you saw all of those infrastructure stocks trade higher as a result what i'm hearing, what started later in the day and hearing this morning really makes me think that deal is no more likely really than it was 48

hours ago or 48 weeks ago. if one depends on the other, i just don't know how it doesn't fall apart >> yeah, so there now at least is a path even if it is a very narrow one and i thought that it was really interesting yesterday that biden himself said that he doesn't have a guarantee that this is going to work, but that he has to start somewhere, that he has faith in sorptt of the legislate process and that this is where democracy begins, with compromise and so doing the bipartisan bill allows people like joe manchin, sinema and other moderates in the house as well to have something that they can show their constituents and say that we're willing to work with republicans, but at the same time he needs to satisfy the elizabeth warrens and bernie sanderss in his party and they don't want to move forward unless there is a guarantee that the families plan as they have

been calling it can move forward as well. and so buying the two together -- >> that is not compromise. we'll definite you some of what you want if we get everything that we want in the end isn't really compromise. and i can't imagine -- i was trying to read the body language yesterday when those senators came out with him, the bipartisan group none of them were smiling and i was trying to figure out why they weren't always more jubj a little more jub lants. did they know -- >> yeah, biden said that they did know senator lindsey graham a republican saysthat they didn' know and that this is embarrassing for republicans but republicans have known all along that democrats can do reconciliation they have this power, they have the tools. of course they are going to use it the question was how are they going to use it and when and so i think that what was different about yesterday is that biden tied them together. it wasn't one and then the other, it was both at the same time >> which is not two bills. it means that it is one bill

we've been retendi pretending ts two bills. good luck getting your party to go along with that but this is one bill when you tie them back together >> right and so that is why this will be an incredibly difficult feat for the administration to pull off if they don't, it is a legislative failure. if they do do it, it is a major win. so i think what is interesting is that there were five republicans who negotiated with president biden at the white house. later on the broader group of sort of the g-21, if you will, 11 republicans came out endorsing that bipartisan framework. so you would think that that would give it enough votes to pass until president biden tied it together with the reconciliation bill as well. so we'll see if some of those 11 republicans who initially came out for that bipartisan infrastructure framework backtrack on that pledge once they see what the reconciliation bill looks like and how big it will be. there is no guarantee that it

will be the $6 trillion that bernie sanders asked for, but it may not be $1 trillion or $2 trillion which would be something that is something more palatable to some of the moderates of the party >> i'd love to talk to some of those senators now, the idea that you have 21 of them that will vote, i don't know it that is still the case given the late change in tying the bills back together obviously a lot to watch it will be a busy summer pete buttigieg will be joining us in the 8:00 hour and we'll get his take on this too >> and carlos brito on the state of the consumer, inflation fears, reopening up america. what he is seeing in restaurants, bars and stadiums before we head to break, a check on the markets

welcome back bars and restaurants are back in full force in much of the country. sports games and live events are also back worldwide with full stadiums will this be a boon for ab inbev? the stock is up about 50% since the beginning of the pandemic. joining us to talk about it is carlos brito, the ceo. he is stepping down from his role on july 1 after 15 years as the head of the company.

and 32 years working at bud. carlos, pretty huge achievement. we can talk more about that in a moment, but thank you first of all for being here good to see you. >> great to see you, becky thanks for having me >> so let's talk about what you are seeing in the world right now as things reopen how has this changed your business, how has it impacted things, does it really feel like we're back in full force >> in some countries for sure. if you look at the u.s., uk for example, vaccinations are loggilog i progressing very fast and getting consumers back to their normal lives, grab a baeer to meet their trends, go to pubs, restaurants, bars. some other countries are still behind in vax naccinations and l some restrictions. but there is light at the end of the tunnel some tunnels are longer than others, but everybody is going toward that light. so it is good. >> we had the ceo of rite aid on

yesterday and i was kind of surprised by some of what we saw in her numbers in the front of the stores, same store sales were down by i think 12% and part of that is because people weren't hoarding up toilet paper and cleaning supplies, but the other part is they weren't hoarding liquor and buying it there like they had been in full force a year ago. it seems that during the pandemic people didn't stop drinking, they just found different ways that they were purchasing it. how did you deal with that it must have been chaos trying to figure out how to get to the consumer as restaurants shut down, events shut down, airports shut down. what did you do and how are you switching back now >> i'm very proud of what our people did our guys in the supply chains, sales, who had to be very agile and flexible because as you said, there was a big shift honk channels, packaging, brands because consumers couldn't buy this public restaurants so they had toresort to grocery stores and they found a way to their

loved products of course volume was still absolutely down in the u.s., but very strong in the grocery store business so a lot of the occasions migrated to the home, the home became the hub for living, entertainment, working so the home became the hub but we found our ways through the grocery stores to get to consumers for sure >> have you unwound that process though, are you supplying less to the drgrocery stores and bac to normal bars and restaurants that is not be a easy feat >> and now it is more balanced but evewe've been preparing fore recovery now for quite a bit we saw some states ahead of others and we saw how consumers were reacting to the new normal. and we saw that lot of the new normal was just like the old normal in that people were dying to go back to old habits and we

started preparing our supply chain to more battles, more draft beer and more of a normal balance which is what we like to have consumers are back and we're very excited about the summer. we think that it will be an amazing summer, so much so that we have this promotion that the white house announced in that we'll give a free beer on the fourth of july >> how many beers are you thinking that you will give away >> we'll see but it is all about celebrating freedom, celebrating all of us being able to dough go back to lives. so we came up with this idea that people are excited about this new world that is out there just around the corner and as more people get vaccinated, the more communities feel safer and the more people go back to old habits.

and so we said hey, let's bring out the beer >> and we just heard that alcohol will be banned at the tokyo olympics, a kind of way of bowing to the japanese public that doesn't want the games there to begin with. we're seeing alcohol sales either cut back or stopped on a lot of the airlines because there has been so much air rage from passengers recently has any of that filtered its way back to you and what will the impact from the tokyo olympics not selling alcohol be >> yes, we were talking just yesterday to our japanese colleagues about the olympics. and what will be banned from what our understanding was is going to be in stadiums. but people will be really watching from their homes. again, the home becoming the hub. and beer consumption in japan which is a very small market for us any way will be at home so it will be more for the athletes to be in the stadiums, consumers will be at home

drinking beer and watching the games. >> carlos, 15 years at the helm there, kind of hard to think of the company without you being there. what did you learn along the way, what advice would you give to your successor? >> well, i think my successor was groomed as i was through the ranks here in the company, been in the company for 25 years. and high advice has always been first who and then what. our company has been mostly about people so we invest a lot of time in bringing the right people, creating an environment where the people come and stay and then we think about big things to do, we try to get the people inspired that they can achieve much more than they think they can on their own. so teams are very powerful and we create an voornmenvironment w own the company. it is myself and the colleagues

from around the world that brought this from ctwo companie and became what you see on the screen there, the biggest global brewer, the most profitable with operations in all continents and i was there with my colleagues during this journey and it was all about people, becky. when we started expanding it was not because of ego or size or anything it was about creating a company that was so interesting and would offer so many opportunities for people to grow that the great talent we were bringing on out of college would find opportunities to continue to develop themselves within our company for many years to come >> and if i look back at kind of the trends in your industry over the last several decades, first i would have said micro brewers popping up and in the last decade or so, certainly about consolidation. what is the next trend for the next decade? >> what we see now is the kree per against of what is called a fourth category, the cocktails,

the barriers between wine, beer, cocktail are blurring. and there is a lot of innovation in between drinks that are in the intersection of all those beverages. we've been very active, it is an amazing category, it is growing. it goes to specific needs of lower calorie, lower carbs, gluten-free in many instances. of getting strengths our gleebl footprint. >> thanks for your time today. really great to see you. >> thank you so much. >> coming up tips on negotiating which colleges if are more money, for tuition, fees and other costs.

and a success story. and president biden may have agreed to the bipartisan infrastructure bill framework from congress but there is stale lot of work to be done former white house chief of staff mick mulvaney and operation hope ceo john hope bryant will join us to discuss the deal and possible impact "squawk box" we'll be right back in 1973 honda trademarked this term that applied to all hiesa-produced three-wheel vecl the answer when cnbc "squawk box" continues what a day of upsets. ha ha. jill is certainly upset with that unexpected bill from her back surgery. aflac! let's see that one more time. ♪ ♪ (bleep) (wincing) oooh, right in the wallet! ouch! aflac! aflac would have paid jill cash directly to help with expenses health insurance doesn't cover.

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now the answer to today's aflac trivia yes in 1973 honda trademarked this term that applied to all honda produced three wheel vehicles. the answer, all terrain cycle or

atc. covid-19 has disrupted college life and impacted many families' ability to afford it but as colleges and universities try to boost enrollment there may be opportunities for incoming students to try to negotiate for more financial aid. advice on how to make the ask and takes a look at one sfam's successful appeal. >> i clicked the link and said congratulations you are a member of the fairfield class of 2025. >> she was accepted to her top college choice and what was most exciting. >> i gotten into the merit program and the scholarship. >> helping offset the coast. how much did it cover for the overall cost of attendance. >> around 30%. >> even with the scholarship the hull family worried they may have trouble covering the rest and they did not qua qualify for

any need-based aid. >> after leaving with a college funding consultant. >> we made sure that we enclosed some of the letters of merit scholarship that she had for accept pss to show we had some leverage we asked what are i felt was a moderate appeal. we said our excitement level is very real if you could help us we'd be willing to commit. >> and it worked how much more were you able to get? >> around 3% more. >> schools weathered some hard times in fall 2020 but that doesn't mean they can't remain active and aggressive with the financial aid and scholarship policies for students coming into class this is year. >> financial aid decisions are based on federal income tax returns from 2019. in asking for need based aid experts say be transparent about

how your family's income and expenses have changed since thennich. >> be very specific. be very to the point why you cannot afford the college you are trying to get into. >> and if you are not successful the first time, don't be discouraged. >> there is always a next year there is always future instances which you will need to negotiate for financial aid. there is still hope. >> if a student gets additional financial aid or scholarship money it is important to clarify whether the money is renewable or not typically you apply for need-based aid every year. meanwhile scholarship money tends to be renewable as long as the student retains a certain gap and credit load for the courses.pa and credit load for e courses. >> where can people appeal for the process if they run into troubles. >> -- you can also find free templates on line. check out websites like admit, road o college, swiss student.

another website tuition fit that can help compare your award letter to other offers families have received so you can use that information to help you appeal for a better deal and the bottom line is just to have all your documentation together and make your case. if you don't ask, you won't get. >> pretty interesting. kind of like a glass door. other families like me got x amount why don't i get it >> absolutely. >> sharon, thank you great to see you >> sure, good to see you too >> still to come on "squawk box," former white house chief of staff mick mulvaney and operation hope ceo john hope bryant on the prosecute's infrastructure deal and then how the infrastructure bill could impact the markets jim paulsen of the leuthold group will be our special guest.

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welcome back to "squawk box. a quick check on the markets before we move on. the dow up about 120 points. shares of dow component nike in large part responsible company reported earnings of 93 cents a share.

analyst expectations down at 51. sales up nearly 150% versus the same quarter before the pandemic in 2019 up 150%. four your revenue guidance exceeded expectations by $1.5 billion. and we're watching shares of tesla, the electric car companies being sued in a california state court over fees at super charger stations. drivers arguing the company broke its promise to provide free charging for life when it imposed a fee on customers who leave the vehicle at a station for too long does that merit? we'll see. >> it's one guy. >> yeah, it is one guy and it is not the original deal that was agreed upon anyway, is it? >> several of the panasonics sold its stake in tesla. panasonic makes batteries for tesla. the stock sale will not change

the relationship between the two companies. they were also watching some industrial names after a deal is being put together in washington on infrastructure. caterpillar, 3m and vulger materials moving higher after the news of that deal. but lot still involved in getting to the finish line on that democrats want the reconciliation portion which is much bigger and much more contentious to be done either before or coincident with the bipartisan deal. president biden announcing that the white house has reached a deal on infrastructure with a bipartisan group of senators >> we had a really good meeting. and answer to a direct question, we have a deal i think it is really important we've all agreedthat none of u got all that we wanted i clearly didn't get all i

wanted they gave more than i think maybe they were inclined to give in the first place but this reminds me of the days we used to get an awful lot done up in the united states congress we actually worked with one another. we got a bipartisan deal bipartisan deal means compromise >> kind of interesting well, there are only ten of'em but front and center manchin and -- right there still many factors in the area namely how we're paying for it mick mulvaney joins us and john hope bryant also welcome gentlemen. mick, you are not only a long-standing member of congress but also chief of staff. with what you have seen that we know right now and what the president said in what speaker pelosi is saying about how this is going to work, is it better

than 50/50 that this actually happens, i don't understand how washington works but they want the reconciliation bill either before or at the same time, and it is much bigger and much more contentious. is this going to come off. >> and that sort of throws a curve ball under the whole process. we texted earlier this week and i was very optimistic about a bill passing once the republicans sort of took the pay fors off the table that is usual a formula for bills getting passed so i would have been well above 50% yesterday until i saw the conference when the president says i'm going support this but only if the other thing passes that takes the wind out of everyone's sails and i don't why -- pardon me i do understand why he did fismt he's feeling pressure from the left wing to not cut a deal with republicans. so trying to have it both ways and thread the needle.

the interplay between this compromise bill and the democrats get everything they want bill really muddies the waters. >> i'm never really sure where you are going to come down on this do you wish they just do what's in this infrastructure bill and not tie it to the other? or are you behind the leverage they are trying to exert to get the rest of it done because they won't even consider doing it till pelosi says -- speaker pelosi won't even bring it up unless that reconciliation is passed do you agree with that tact? >> i think we're being tact cal when these folks understand like dr. king and -- republican president and warren buffett that we need to be strategic b i think i want them all to be like ike which put the highway system in place by the way that we all benefit from today i think it is going to happen. because every one of these

congressmen, every one of these senators by the way i love that photo other than seeing a little bit color in it. i love that. i want to' more of it. i love the president invested in infrastructure all need roads and bridges and i think the bill will get done i don't think they would have come out like this unless they knew they wouldn't get to the finish line. this is ike on the infrastructure, it is doctor king saying the world is moving jet like speed and we're moving horse and buggy pace -- 13th in the world and every one of these folks understand you cannot be the global economic leader when you are 13th in infrastructure in the world. and warren buffett understands you have to reinvest your product. i think we'll get there.

i'm not mad how they are going act it it is washington and more art than science and mick knows that. and i think we're going to get there is the answer to the question and i don't think they would have come out unless they knew they were going to get to the finish line. >> hey mick, i've been warned so many times not to talk about the saucening and making it and it is just disgusting and i don't even know what it is, half the time the sausage i was reading an article about what majority leader schumer had to do to get joe manchin on board for the beginning debate finally because he offered him something. but manchin at this point has a lot of things that he supposedly are set in stone that may not jive with what is going to be in this reconciliation. do you expect the democrats to hold the caucus together because they need all fifty with vice

president harris to do the reconciliation is that going to work? >> yeah i'll try and stay out of sausage making too much and talk briefly about reconciliation i think one of the reasons you are seeing democrats stay at the table so long with republicans despite the pressure from the left wing is the reconciliation plan b, if we don't get what we want through a bipartisan deal we'll just go off and do infrastructure and everything else to reconciliation i think they started to realize a couple weeks ago that is falling apart. lots of folks miss the fact that during the covid bill passage a couple of infrastructure things didn't pass the review what we call the bird babath as part of reconciliation meaning you couldn't use that special rule on big infrastructure project and send the message to the democrats that tay can't reconcile everything they want to and that is why they are still at the table so i don't think reconciliation is the silver bullet for them. they need some type of

bipartisan 60-vote bill to get the nuts and bolts of true infrastructure i think they can do their own thing on what they are calling human capital, free whatever i think they can do that threw reconciliation but i don't think they can get the roads and bridges built through reconciliation that is why you are seeing a drag out on the bipartisan basis. i don't think it is just joe manchin. i joe is taking one for team for a lot of the moderates in the senate in a 50/50 split every democrats that has type of authority so i think there are moderate senate democrats happy to see him take the bullets because aft lot democrats are really a little leery for the reconciliation package for the whole world. >> are you one of the progresses, john, that is sort of unhappy that he's not going along with this party on everything. >> joe, you are really good. you are trying to put me in a corner look the only corner i'm going into today, by the way i think we're actually looking at this

as half empty versus half full give biden some credit he cut a deal and got republicans and democrats to the table. republican asks democrats in the house and senate working together there is no different than any other president or presidency other than this time actually get an infrastructure bill passed and this is infrastructure week for like i don't know a decade and a half look, this is going to happen. i'm optimistic all this sausage making is a different deal what joe manchin and others are doing so far is working. do you know what the wrong answer is joe? the right one that didn't work and the opposite is also true. we're in the middle of a process that as mick knows is far from perfect but this is what makes america special. when it is crunch time and we're at war -- and we're at war right now. we come to the table as one country. finally we're beginning to do that and i want to give these folks credit and encouragement to get to the finish line because what all of our increasing asset value and

wealth depends on. and by the way mick, i love you. but i disagree about the sort of human capital thing. it is no at human capital thing. it is everything it is the people are the product. and we have got -- so they are trying to get a hundred billion dollars for retrade the kids for, i.e. evangelistic course, a computer course out of high school and a job out of high school we got to get people back to work in the jobs of the future got retrain'em got to invest in human capital nobody wants to go to dead end job, 26,000 a year, and working 12 bucks an hour they would rather sit at home. this time a deal that actually reinvest in this country for growth. >> so i always love john's optimism about all these things. and but and he didn't want to go where -- i was.renal trying to take you there john but i think

it is a real thing that the president has got a woid range of people to try and satisfy not only on the moderate republican side but on the moderate democrat side and mick do you think he's going to be able to herding cats that includes, you know, squad and maybe, you know, some members of the senate that are much more liberal than the ones that are in that group of ten do you think that's gonna work >> yeah it's really tough but i think it is one of the underreported stories out of washington, d.c. is the democrat party -- if it gets done. here is why i think it gets done the actually the easiest part. they are only trying to figure how to spend a trillion dollars. if you, me and john hope and becky and andrew sat down in a room with a trillion dollars to spend we could all be satisfied because there is joust much money being spent.

the harder part is how do you pay for it spending money is not -- figuring how to pay for it is and that is the hard part. if it does pass, it will be for that reason and not because of some special sauce or some special bipartisanship it is just going to be because there is a lot of money to spend. >> okay. guys thank you. thanks mick. thanks john hope bryant. i'm not speaking disparagingly about sausage. believe me i don't know what to know what's there but ooh. believe me you get the right kind if i sound like i had a problem with sausage, i'd be lying if i said that. coming up in the next hour transportation secretary pete buttegieg on the bipartisan infrastructure deal. "squawk box" coming right back

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marcus will be watching for a key inflation gauge later this morning. our next guest has been struck by how much investor sentiment

shifted from march to june driven in large part by that ten year year old. jim paulsen, chief investment strategist with the lutehold group.euthold group. we were at 1.75% months ago. we were convinced we were going to 2% and beyond very quick. and we were all wrong. the yields pushed back down. 1.4% and change. everybody is convinced yields are never going back up. you think we could be on the cusp of another "everyone being wrong moment." why? >> the first quarter with yields surging higher and break even rates and bond market expectation was surrounding higher and commodity prices for surging higher and there was just a sense the fed was becoming way behind the curve and that inflation was we all knew was going to get a lot

worse soon and when the bond market closed about 1.75 on the ten year end of march that yields would soon blow through 2 circled. and people said dump the tech stocks and buy value, financial, cyclicals going forward. and the yields peaked at 175 and rather than going up came down to allow 140s last week. by the end of the quarter break even rates rolled over commodity prices rolled over and here we are sitting now at 1.45, 1.50 and the recommendations are kind of oh maybe the fed is right maybe yields will be lower for longer maybe inflation is only transitory so gosh sakes you ought to buy

those tech stocks and growth is gonna have a renaissance and dump cyclicals and value and small caps i just wonder if the same overzealous sentiment today, the opposite of where we were in march, is more a signal that we might be close to the low end yields and youen might want to actually go back to cyclicals and smalls again and be careful of being too overweighted into this new rally so to speak into growth into tech right now >> what makes you think that ore than the wisdom or lack of wisdom of crowds >> i think that is a big piece of it. but if you think about it too, becky, what is different, in march everyone thought yields were going to blow through 2%. i don't think today most people think they are going to blow through 1 prkd or down to 1 and a quarter. what think think is they are just going stay slow low we might be a 10% real gdp

quarter. we could grow 10% next quarter we're going to keep growth very strong and so whatever inflation does, that looks strong too. but whatever that does, real growth is going to stay strong it seems much more likely before the year ends that rates go back up than they go down just when you look at the fundamentals that are happening right now. and from a 150 yield, it seems a lot more likely we might still see 2% by the end of the year. and if we do boy, there is such strong correlation between where the 10 year goes and what happens to growth, what happens to value, what happens to smalls, what happens to cyclicals. they are just directly tied to the movement of that 10 year and i think if you look at the rest of this year it is a much better bet to bet yields go up than to bet on cyclicals, small, international market, value, than it is the other way around. >> you mention fumds and i have to wonder how much of

the bond market is driven by fundamentals at this point seems pretty much all the fed. they are buying the same amount they are issues, at least in recent months. >> yeah. interesting becky, that i kind of concur with that. there is certainly a heavy handed fed weighing on the pricing of the 10 year yield on the other hand the fed's been buying the same amount in quantitative easing since the end of the year every month. and why was it that in the first your aft year bond yields could two from 70 basis points to 175 and now in the last quarter suddenly they can't go up? fed doing the exact same buying. so it does make me wonder if the bond market is maybe pricing things where they think it should be priced right now one other comment about that if you go back to 2012, what you will find is that the 10 year yield in this country has traded below the median consumer price inflation rate 70% of the time so we're below inflation today

but there is nothing unique about that over the last decade. we've been below the median inflation rate most of the time now for almost the last ten years. >> the fed's been involved the last ten years look back at the last decade, the fed had been involved the last decade too. that is the constant. >> that's true >> that's true but we also have foreign yields that are much lower than u.s. yields and a lot went negative about that time 2012 and i guess my point is, i wonder if the bond market is being priced by vigilantes as where they want it and it isn't so much that the fed is dictating this as much as people think that is all i'm saying and if nothing else, if rates could double in the first quarter when the fed was heavy handed, why couldn't they double in the third quarter again or the fourth quarter >> true. gave me something to think about this week, jim thank you. have a great weekend

>> you too. >> when we return, transportation secretary pete buttegieg on the president's deal with a bipartisan senate group on infrastructure, how it is going to be paid for, other questions. futures right now continuing to show some gains after a big gain, big solid session yesterday. "squawk box" coming right back. ♪ 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. ♪

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good morning this was rin fracture week in washington and we mean that for real this time.infrastructure week in washington and we mean that for real this time president biden says he and a bipartisan group of senators have a deal in hundreds of billions of dollars of new spending lots of things still swirling around in the process. transplantation secretary pete buttegieg joins us live in minutes to talk about all of it. stocks moved higher when we got the news yesterday and major averages are now tracking for their strongest weekly gain in months. and that is one small step for sir richard branson. i did -- the virgin dplaktic founder a little closer to making it to space. but will he beat fellow billionaire jeff bezos the final hour of "squawk box"

begins right now good morning everyone. welcome the "squawk box" here on cnbc live from the nasdaq market site in times square. i'm becky quick, and joe kernen. >> hi. >> we've been watching the u.s. equity futures that the hour dow futures indicated up by triple digits. a gain of 102 points, most from nike, if not all i've been watching shares of nike which were accounting for about a hundred points of the gain there and nike stock's moved up since then up about 13% so that may be all nike fuelling the dow. dow was up yesterday by one percent. s&p futures up another 3 points after closing yet another all-time high yesterday.

nasdaq closed at an all time high yesterday too and it is now up by about 12 months. the treasury market you are going to see right now still below 1 1/2% for the ten year. 1.483% joe? >> very good, thank you, becky let's look further into this mike santoli joins us now. he's been looking into the whether the recent record rally could have staying power first half of the years. draws to a close we're getting pennsylvania loefian. is this going to work foreverav. is this going to work forever. >> i think the market is like i'm not really sure that's really material at these levels but the market was willing to accept it yesterday as just incremental. look at the s&p so far over the last year

but the pattern is really holding from 20. we're work okay a 15% total return including dividends for the first half of 2021 at this point and what's going on this year is you have had four or five of these quick single digit shake outs they all went down to the vicinity of the index's 15-day average. pretty much got traction there and went off to the upside and eventually made new highs. i think you can quibble that if you want to look here since april the market's up about 2% it's really churned around the levels and not given way much on the downside another is that it hasn't been quite as broad this last leg the quarter to date results from the s&p 500, the regular market cap weighted against the equal weighted version and the s&p has pulled ahead the mega cap stocks doing a lot of the work. actually like 40% of all stocks are still kind of wallowing below the short-term up trend. seems some wear and tear

some stocks are giving way finally the volatility index, things have calmed down. this index continues to roll downhill with some bumps along the way. that's what's been going on for months this a two year chart because i want to show the bottom end of the range from 2019 when things were calm and firm in the markets. we're more about 12. here around 16 clakd below 15 couple of times this week interday the question is whether we're haded for something like this when policy was very very clear ahead of us? and we also have a 2% economy as opposed to a 10% this quarter. can volatility actually drain loir before 2020 or are we in this market where there is too much going on in the economy that could swing either way perhaps to let volatility drain that low >> interesting mike. heard that from a market strategist earlier and your take is maybe it is not up because we're spending another trillion.

it might be up because we're not breaking the bank with 4 or 5 trillion and she pointed out, this market strategist that a lot of the things people don't view as infrastructure there were initially, they weren't there. tax increases there. there weren't some of the negatives there and that is why. this is a different way of looking at it. let me ask you this, mike. >> i would just quibble with the word because i don't think we're really hinging one way or the other on this bill. and i will just say we're going to be talking about fiscal drag into next year because we're not going to do another 6 trillion so it is going to be year over year a little bit less of a fiscal push. >> you sure? we're not doing six? >> well. >> -- >> it's a 50/50 senate >> i wonder if we do get a reconciliation deal that's really big and manchin and cinema sign on i wonder then if it is really big maybe there is some

reckoning. >> 5% growth in the economy is more than a trillion in annual gdp. if the economy is growing with it, it mutes the size of what the debt is doing. and it hasn't mattered there hasn't been a moment in the last 30 years you could point that that threshold where all of a sudden it starting to actual animate the market. >> people think maybe jay powell has something do maybe with keeping things orderly in the bond market. thank you mike santoli. >> president biden says he and a bipartisan group senators have reached a deal to relegate hundreds of billions of edwards to upgrade the nation's infrastructure. >> none of us a got all that we

wanted i didn't get all i wanted. they gave more than i think they were inclined to give in the first place but this reminds me of the days we used to get a awful lot down in the united states congress. we actually worked together. and bipartisan deal. that and that means compromise. >> the passage includes more than a hundred billion dollars for roads and bridges. 66 billion dollars for passenger and freight rale and 65 billion for the nation's broadband build out. but it is not a done deal. first needs the support of at least 10 of the 11 republican senators who worked on that compromise plus every single senate democrat and they may not okay the bill unless it is paired by another one to be passed through reconciliation joining us to talk more about the infrastructure deal so far is u.s. transportation secretary pete buttegieg mr. secretary, thank you for being here today >> thanks for having me on >> you know, the market looked at this news pretty

optimistically yesterday i was surprised to see the deal was getting done but some of the language we heard later, some of the walking back gave me some pause. the idea that this deal will not be signed by the president unless it is paired with the other half of the deal, the other part of the deal that got kind of split off from this. and similar comments coming from nancy pelosi really makes me think we're not that much closer to getting something done. what do you think? >> i think this is an extraordinary deal when was the ast time you saw senators both parties coming together to do something this big? there are parts of the president's vision for this country that the republican party won't support. but there are parts that we really can do together in fact the question that's been asked of us for months is, okay, is it really true. this when you look at infrastructure you look at what needs to happen around broadband, around water, around transplantation infrastructure, is it really true that even on this democrats and republicans can come

together and yesterday was evidence the answer is yes. this is going to be great for the country. it is going to be great for the economy. and it is a truly historic level of investment. we're talking about more for passenger rail that's been done since the creation of amtrack. we're talking about a major investment in our roads and bridges, as well as a lot of things that are going to benefit our sustainability as a country, clean energy, transmission a lot of steps that are going to be critically important. and thes so much better. so much better for the country so much better for the policy. when we can actually do it together across the aisle. something a lot of americans were beginning to despair over whether it is possible on any issue. >> that's how i felt when i heard the president come out with those ten senators. that is not how i felt when i heard they were tying it all to everything else being done first. i mean this isn't a deal if you still have to say the other four trillion or six trillion dollars or whatever it is that bernie sanders is working on has to get approved first. and bernie sanders himself said look, you heard it from chuck schumer. from pelosi. from president biden

this is not going to get done unless we canget all the rest of it done too and that made me think okay this is not going to get done >> no i think this has been understood from the beginning. most of the senators -- most of the republican senators i spent time with this year so far understand and accept that there are some elements of the president's agenda that we're not going to be able to do with them but of course we're going to still purse them republicans have understood and have not asked us to abandon the rest of the president's agenda. >> i agree i thought that was always going to get done later but i didn't think it would tied to that getting accomplished and my thought was yes, we'll do this part of it, we can't agree with the rest but that is okay they can figure that out later i don't think they realize that that had to be figured out first before this gets done. i think you lose a lot of of them if that is what this is tied to. >> well we're doing them at the same time. and i think the fundamental question is not which month, which date, which part of which

bill passes. if fundamental question is "are we going deliver for the american people? and of course we're going to continue working on that that's how two tracks strategy works. we'll do one part on the one track and the other part on the bipartisan track and we are proud of what we were able to put together on this bipartisan track it is not perfect. we didn't get everything we wanted the republicans didn't get everything they wanted but as the president says, that's how compromise works. and i think it is reassuring to see that that kind of legislative work is possible we still got lot of work to do this year to actually deliver but this is incredibly encouraging, and the substance of this deal, obviously as transportation secretary is the thing i'm most excited about because it will transform what it is like to move around, to drink water, to have a access to the internet in america. it is not just good for the economy. it is good four future >> i guess everything though hinges on whether you are going

to be able to get the fifty votes and reconciliation do you have manchin and sinema have they signed off on some sort of plan for the larger part of this? because they have been the ones who have expressed lots of concerns without them it doesn't happen. >> well -- yeah you can't guarantee how a senator is going vote on a bill that isn't yet been written but what i'll say is this atmosphere of compromise and collaboration makes progress more likely and more possible on all fronts and we're going to continue to pursue that. something not just democrats but americans expect us to do. and when you talk about something like child care, some of the other things that we know need to happen around clean energy these are things that are not just democratic party priorities they are american priorities but there is a part of the president's vision an enormous part a $1.2 trillion part of the the president's vision that we can do together,side by side republicans and democrats. that is what you saw yesterday and i think something the country has been hungry for us

to do. >> mr. secretary, we -- i've appealed to your transplantation secretary urges before i didn't get the complete answer i wanted last time i'm going to do it again let's say all these other ancillary things you are talking about. let's say that is just not going to go. from manchin or the caucus or whatever and that your deal, your transportation focus deal gets scuttled you wouldn't be the slightest bit chagrinned or unhappy if, you know, going for the moon with the human infrastructure, however you want to call it. you wouldn't be chagrinned if you had to sacrifice all this stuff that you were going to get just because you don't get bernie sanders kitchen sink bill >> of course we need and want to do all of these things and i care deeply about the transplantation infrastructure elements that we struck a bipartisan deal to get done but the american people don't expect

us to walk away from child care. the american people aren't expecting us to walk away from clean energy or these other wildly popular deeply important policy priorities it is just that we have a common sense recognition that there are some things we can do together across the aisle and some things that we can. it is like the rescue plan, unfortunately. it was necessary for the rescue plan to be passed on party lines. it still was the right thing do and it is making america better off. but it is so much better when we can do at least part of it together and that is what this deal represents. >> market was up yesterday because investors assumed this deal was going to get done and probably sooner rather that be later. what sort of time line would you put on it? >> there are markups in bills relevant to this going to the floor in summer. i think july is going to be a big month and then we head towards the end of the fiscal

year we have an enormous sense of urgency about this because the american people rightly are impatient for us to deliver results and so is the president. >> mr. secretary i want to thank you for your time today >> thank you great to be with you. >> great to see you too. >> coming up another big interview with former federal reserve nominee judy shelton she's asking the question who is going to make sure inflation doesn't overwhelm america's economic recovery. if it is not the fed i thought that was a dual mandate. what happened to the other part. never hear about it. and check out the shares of tesla on pace for their best week since march and also learned this morning panasonic sold its stake in the electric car maker in the year ended march for about $6 billion. t stay tuned

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update for you on a story we've been following four people are now confirmed dead following yesterday's collapse of an apartment building in south florida. as many as 159 people remain missing at this point. rescuers work through the night in hopes of finding survivors at the site in the city of surfside, near miami much of the beach side of the building was sheared off during the collapse the miami dade police department is holding a media briefing right now. we're going to be monitoring and we will bring you any updates. the news with sheppard smith will be life tonight with the latest on the rescue efforts is what may have caused that coll

stay tuned you are watching "squawk box" on cnbc

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shares of virgin glaktic have blasted off this morning.a have blasted off this morning. >> they were trying to hard and you just let it flop. >> i'm not going to try it. >> back it up. try. i'll show you how. shares of virtue galactic have blasted off this morning >> you don't think people at home are going -- just. >> they wouldn't be until your side bar came in thank you. >> richard branson space in fact they blasted into space. they changed it. they are adding more messing with me, again. >> we can't play the music anymore. >> gonna torture me with these hackneyed -- -- space tours and company says

the faa granted it to fly licenses and passengers on space flight that is a to getting the venture "off the ground. at least three more virng virgin space flights are planned. the second will carry virgin founder sir richard branson. will he get there before amazon founder jeff bezos bezos is scheduled to go up july 20th in a rocket made by his company blue origin. earlier this month -- said virgin galacticing is considering its july 24th schedule likes -- >> can i try this one for you? >> go ahead. >> shares of nike are running

ahead. >> they didn't put that in there. >> no i'm just -- >> you came up with that >> see i can do -- >> do you know why i don't think they are clever enough to think that. >> they just didn't go to it >> what else can we do we can come up with some other ones. >> no flat tires here. >> no. is this me still >> yeah this is you. >> you were doing so well. shares of nike pushing futures higher in the pre market athlete apparel giant released fourth quarter earnings last night. earnings per share came close to doubling and nike benefitted from pent up demand for shoes and clothing helped by a 73% jump in direct sales through its apps and websites they just did it as opposed to, oops i did it again. >> another headline. ripped from yesterday's news. >> the headlines, microsoft

incrementing itself as a true member of the $2 trillion market cap club shares of the dow component e closed yesterday at 266.69 and multiply outstanding shares. $2 trillion for market cap only apple's market cap is bigger than microsoft now. facebook is quietly closing in on a trillion market cap right now. >> following it. >> yeah. right now. yeah it is worth about $980 billion. >> we read so long i had others i was making up my own analogies for. like fedex shares didn't deliver. >> you know why we had so much time. >> we've shown enough behind the scenes right now let's not. >> because you can only ask the same question so many times from a politician if you get the same answer every time you may need to move on coming up, breaking inflation

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work back to "squawk box" on cnbc seconds from new pce inflation data the future right now around here all morning long kind of anchored there by the big report from nike and the dow component is sharply higher. rick santelli is standing by at the cme in chicago >> on personal income and spending waiting may data. don't see it on the wires yet but just to give you a brief glimpse we are expecting income to be down and spending to be okay income down 2% that's actually better than the down 2 1/2%. and why do we expect that well of course the pop from the stimulus check's last round is fading a bit and on the spending side is unchanged. a bit of a disappointment. we're looking for a number closer to up half of one percent and we all know spending is

changing gears maybe moving away from what was during maybe worst parts of covid, autos, furniture, electronics, more to beauty, we're all in public again. healthcare, clothing, restaurants. and if we look at the deflator and this is important. month over month deflater is down 0.4%. much bigger than the 0.1% we were looking at. but last month went up to 0.3. year over year, 3.9 deflator is expected and the core, month over month, x food and energy, it is up 0.5 less than the 0.6 expected and moving a bit lower and year over year deflator, percentage consumption energy deflator is this is probably a number everybody is looking at and anticipating the most.

up 3.4 exactly as expected do remember, last time we were at 3.4 you are looking early nineties, so it has been a while. and whether this is sticky or whether it is transient or not listen, there is very good arguments that it is going transient. but if the last two or three or four years isn't transient or just inflation and the markets have to grapple with that like the fed, bank of mexico and along with me mermging markets started to snug rates up a bit but if you look at the biggest central banks in the world they are snoozing during the whole episode. joe, back to you. >> for a while rick, i think we talked about maybe a triple mandate because the fed so good at their dual mandate. i know you are excited judy shelton is on the next half hour she's saying you got fiscal authorities spending like

drunken sailors. the fed qeing like drunken sailors. who do we look to resolve the inflation? usually it would be the fed because they have as a mandate price stability. but they seem to be all about full employment. so who does that leave reaching the store? fiscally they are going to keep passing stuff that needs to be paid for with bond that fed is buying to keep interest rates low. >> right and the feedback loop, where you usually get a nasty response from the marketplace, so you stop doing all the things you just outlined. well there is no signal anymore. the signal is broke. when i look at the board and i see 1.58, ten and a 2.09 thirty. i don't know how much confidence that truly reflects all the dynamics of the times and risk parameters we are currently living in. and if it does, i guess the

bigger bi bigger question is if reallies go up in earnest i don't think the fed is going to be able to --. -- love and marriage, don't you joe? >> i treb song. >> the em theme song, love and marriage go together like -- and children one without the other. >> married with children. >> yes the reason i bring it is the nancy pelosi, what did she say she said no infrastructure bill without a reconciliation bill. so all this kumbaya moment, i don't know to me it is not really a cokumby moment and what's going to occur on the other part that includes trillions and trillions. and i think it is a bit disingenuous to point to all

this bipartisanship. let's see what actually gets voted on and when. we know it is a package deal can't have one without the other. >> maybe it is a triple man -- >> ♪ one without the other ♪ >> both went on great things modern family and katy siegel and just amazing in anarchy, the motorcycle show. sons of anarchy and she's in another -- great >> now it's stuck in my head thanks. >> rick, maybe it is a triple mandate, they are just ignoring one and we know the third mandate. keep the stock market going up keep the market stable. >> -- found out the other day is keep the interest rates low so we can pay off the national debt. >> that's part -- >> lodge toll me. >> about four mandates that is a tough job jay powell has. anyway, thank you. >> normally i'd say congress needs to approve these pillars but i don't have a lot of

confidence in congress these gas. >> you need the fed to co-all this stuff but you sort of have hijacked the fed for all your fiscal plans and they need to be on board or you can't do it that's where you need a spine. maybe. maybe we're missing one. >> who's missing a spine >> i don't know. there's one in the fed there's how many of em >> but, you know, he's got to get reapproved for another term. >> i know. >> then maybe you see what happens. >> i know. coming -- >> and by the way i think he's done a good job. >> jim cramer's first take on the markets this morning and judy shelton helps us understand the inflation data we just got will it move the needle with central bankers trying to figure when the raise rates and bitcoin is heading lower its been an up and down week for the world's biggest cryptocurrency down about 5% for the week and down around 33,000 in change u ay tuned

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the new york stock exchange, jim cramer joins us. we talked about a lot of stuff this morning but the futures are creeping up again. the dow up 140 points. something like that is coming just from nike pretty unbelievable to see what they reported. >> lot of people short nike betting somebody would go wrong, that china would be weak

china was weak came back though at the end of the quarter. lot of people felt there are going to be some questions about religious freedom on the call but no analyst asked that. so they got a freeps they did talk about pass they did talk about how they are going to do a new technical center in china. and it went off picture perfect. and those who felt there would be ing that could say the communist party was against them were disappointed the shorts were disappointed so every short -- this was the most shorted big cap stock it wasn't a meme stock, becky. it was just a shorted stock base on what we've been hearing about the communist party. same thing i had with starbuck's labs night kevin johnson -- >> that was a great interview. by the way just hearing from him that a lot of the stuff is getting stretched out of proportion, that they are not out of things like cup hot or cold. >> the cup story was false

the innovation story was false and it is interesting. people wrote those stories and a lot of people then took action on them. and the stories were bogus and there is -- look, there is no journalists in jail we know that but how much would you like to know who started that story? and why didn't they check with kevin johnson? because he would have denied it. i think one of the reasons to come on air was to. >> clear it up, yeah. >> but he made it very clear that the chinese -- starbuck's and china is for the chinese and there are no problems. so i think -- i took it as bullish. i sent a note this morning, she hasn't responded but that all right, this is for apple clarion call for apple they make things there good for nike, good for starbuck's, it is going to be good for apple and i'm waiting for tony to come on from -- and said, you know, it is really good but in fact it is really bad.

that is why if it is good he can say it was good and if it is bad he can say it was bad. i would love to have that option. >> let me ask you about the infrastructure bill. because we've been digging through it so to speak. >> we're continuing with the pun this is morning too. first question i thought wow this is really great i can't believe they are coming together with a deal because i've been skeptical you could get everybody to agree they came out and said they had a deal but wait a second it is tied back to the second budget reconciliation deal and i don't see how that gets passed without blowing up the other i just -- i don't look at it at the same way this morning. >> i'm with you. listening to this and it is almost farcical. because you finally feel they get together and there is one moment president biden said hey listen, i was in this body i know how to get it dope. and it basically whispers because it is not done there is more tight. and i'm like what is this some

telephone game we used to play with our kids. the bill is going to be done and again it says bill's not done. it was little bit of an amateur hour thing but i this people are going to say something got done because the stocks are flying. >> just, like, i finally realized, wait a second. all of this stuff that everybody has been telling us is fair and is going to happen and i didn't believe and it all of a sudden i was a believer and like they pulled the rug out from under me wait a second this is not going to get done. i don't even know if you can do two budget reconciliation bills in the same year that is the case you don't even get to vote on any of this until next year. >> reminded me first i thought when reagan had a deal with tip o'neil and everybody is saying the hard right president got a deal with a hard left congressman? and the answer was yes because reagan with as compromiser and so was o'neil. i thought we had that. and then they layer on this. and it is not enough to have 500. its got to be a trillion so that said, don't pay up for

those stocks don't pay up for cat already had its move go back and cover your nike short and sell fedex which by the way that fedex call is very good but suddenly everyone decides fedex is back i think that is nonsense >> i thought the same thing. this reminded me of like when walmart said we're going to miss our numbers because we have to put a lot of capex into building things up. and look at what a great call that actually was. doing this because you want to get things on time to the consumer that is what you are supposed to do when you have a business running it for the long haul. >> best buy did the same thing took the hit in order to make it so they had the right supply chain and infrastructure look, they survived. i have to tell you, people who are selling fedex are people who have decided that fred smith said the labor costs are too great and didn't bother to read the next ten pages

i don't blame them because the ten pages were a real slog i was doing it my wive -- only page seven at the call you started the call at 6:15 it was very dense. and they got to work on that the nike call was like stephen king novel boom you were right through. but the fedex was more like tristen shandi what a bad middle march. a book you had to read in your sophomore year. >> -- beach with you this summer. >> no, i wanted -- i need a fedex cliff notes. i'm going call fred and get the cliff notes for the call because boy, when you read the cliff notes you want to buy fedex not sell it. >> jim, thank you. that was fun have a great weekend. >> have a great weekend guys thank you for the time. >> we're just a week away from the next government jobs reports and other data point the fed will consider. members look at when to ease up

on their unprecedented pandemic era support for the economy. and "wall street journal" our next guest is asking a question many on wall street might be positing who is in charge of inflation these days or better stated perhaps, who is the blame? judy shelton author of money melt down. restoring order to the global currency system. and her latest who are you going to believe on monetary policy? thanks for joining us. i was going start, judy with a few good men one good men and then i said a few good persons is what i need to say now. a few good persons or one good person who are we going to look to save us from the possibility of overcooking and bringing back some inflation that is probably worse than anything else for financial assets >> well, the likely candidates for that position would start on

the fiscal side. with the responsible congress and we would hope that people would start talking again about the need for a balanced budget it seems pretty farfetched at this point, but if you look at who is officially charged with responsibility for stable prices, then of course that would be the federal reserve and chair jerome powell would be taking that responsibility the can question is responsibility of stable price has turned into stable inflation. even more the fed now says that they are aiming for moderately higher than 2% inflation for some time until they make substantial progress toward their goals. none of those terms are defined with any specificity so so much for forward guidance. >> well you are talking about how many mandates the fed can handle and supposed to be a dual

mandate. now there are 7.8 million people that are still not back to work. so the fed, do you think that they are laser-focused on that to the exclusion of the other mandate? or do you think they have time to handle the other mandate? but it seems like they are only a single mandate, entity at this point. >> it does seem like that. and the irony is we're now going back to the phillips curve mentality that you sacrifice one for the other. it was paul volcker who said that stable crises give you the foundation to maximize employment so it really shouldn't be seen as a tradeoff. >> and the scariest think that you point out judy and this is something we've talked druckenmiller about is that the fed can be co-opted by the people in charge of the fiscal situation, by congress, by the president, to enable them to do

things that really aren't wise and in the past maybe the fed would have stepped and said enough is enough. but at this point they are enabling all of this spending by buying the bonds that are used to pay for the spending. so there is no governor. >> well, that's right. and that makes for a very unhealthy relationship because it allows congress to indulge in the deficit spending the fed steps up and buys those government-backed securities, mostly treasury debt but also the mortgage-backed securities so at 120 billion a month, they are really financing that lex spending by the government and in that sense enabling it. and what's damaging in my view is that the fed then buys it by creating liquidity for the banks

in the form of crediting the depository accounts, their reserves their reserves are up to 3.8 trillion they are sitting at the fed and the fed has kind of ring fenced that money to keep it from entering the economy so in a way that is how they intend to inflation. but just think of that you're training a bank to engage with the fed and to buy and sell government securities instead of doing what you would hope banks would do in the process of financial intermediation and making loans that increase the productive capabilities of the economy. so i think it's the mechanism that we should be concerned about. the fed didn't get much fanfare but at the last press conference they announced that it was strictly technical, that there was going to be a slight increase in the rate they pay banks not to lend, effectively i wouldn't call that tightening, but i would call it subtle

coercion and it further incentivizes banks to keep the money stockpiled at the fed instead of using it to do something productive with the private sector >> the longer we keep things going and keep the party going -- i'm talking about not just stocks, bonds, too -- but as long as the fed keeps doing what it's doing in terms of accommodation, it just seems like it's going to be harder and harder to take away the punch bowl i think right now they're faced with that. they can't even through body language say we might talk about tapering at some point in the future they can't even do that without causing in the financial markets. how bad are they painted into a corner right now >> well, i think they are because every nuanced statement gets analyzed to pieces by market observers, so they don't want to do anything to disrupt

markets. there's a penalty to pay for that i expect to see a reckoning maybe next month it'll start with congress. i know that senator rick scott from florida has a piece of legislation called the federal debt emergency control act and he's saying that at some point what do conservatives stand for? is there any limitto how much overspending can be allowed? and maybe that will cause everyone to say who is responsible for this because certainly the fiscal overspending is part of it but, as you say, the fed enables it and so at what point do we begin to say there has to be a limit because if modern monetary theory is correct and there are no limits to the budget and there are no limits to spending, then i sometimes wonder then why even worry about revenue why should anyone pay taxes?

certainly it is true the fed digitally creates out of thin air purchasing power, but now is keeping it corralled in the form of reserves. until we reach the point where banks are more interested in hiring lending officer instead of the next compliance officer, i don't see a way out of it. >> if the ten-year recently came down again and there's no yield, i'm talking about, there's really no -- i don't think nothing on the horizon in terms of global growth to account, do you think that's still a price discovery is being influenced by the fed or is there some underlying reason rates aren't going up quicker than they usually would be expected to >> it seems like the markets were trying to tell the fed that we're worried you're going to be late responding to inflation

and so they were pushing the rate up. but if the fed is not worried, then i think the rhetoric from the fed tends to tamp that down. and the people who have done the best in markets learned a long time ago don't fight the fed the if the fed says you don't need to worry, then they're just accepting that and not challenging it i just hope that the lower rate isn't implying reduced growth rather than a reduced premium to raise the nominal return because of inflation i'm more concerned about long-term rel gal growth of the economy and whether that's reflecting some negativity >> before we let you go, let me ask you about something some people see as speculative. other people see it as the answer and that's crypto and bitcoin. do you view it as a pushback

against china and their desire for global domination, or do you see it as a ponzi scheme hoax that so many people call it over here, or is it somewhere in between? what's been going on there >> well, i want the u.s. dollar to be the most trustworthy currency in the world. and i think some the crypto craze came after 2008 in the financial meltdown in the sense that money is too important to be left to government or politicians. so some of it goes to the idea of competition in currency, like competition in any product, would be a good thing, it would challenge the dollar to fulfill its role as a unit, a medium of exchange but a store of value. some is healthy competition.

china, we see what they're doing with bitcoin stable coin seems to be more appealing but through a decentralized approach that, to me, is the most promising path forward and at some point i do expect legal tender laws to come into play and challenge the development of crypto. >> very good, judy shelton, thank you. thank you for your time. i love listening i have to think hard and sometimes it hurts my head people see that. they could probably see it on my face but thanks. i think i got most of that we'll see you again soon thanks a lot >> thanks for inviting me. >> you're welcome. as we head to a break, an update on a story we've been following, the miami-dade police department wrapping up a media briefing a few minutes ago following yesterday's collapse of a high rise, a 12-story, i think it was a condo building in miami beach. the mayor says at this point the number 159 are unaccounted for

at least four people are dead. the news with shepard smith will be live from surfside tonight. the latest on rescue efforts and what may have caused that collapse coverage will start at 7:00 p.m. 'rcongig bk,n. wee mi rhtac though, this morning state-of-the-art but dependable. in other words, you want a hybrid. so do telcos. that's why they're going hybrid with ibm. a hybrid cloud approach with watson ai helps them roll out new innovations anywhere without losing speed. from telco to transportation, businesses are going with a smarter hybrid cloud, using the tools, platform and expertise of ibm. good work little buddy. ♪ ♪ ♪ ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪ ♪ ♪

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all right. let's get a final check on the markets on this friday morning you see right now the dow futures indicated up by 171 points picking up steam all the way through. the dow up 1% yesterday, s&p and the nasdaq closed at an all-time high and indicated up, too that does it for us this week. i'll see you back here next week good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are building as attention turns to some koc cor data, still the highest since 1992 most of the gains at the open will be nike our road map begins with the logjam lifted, the president announcing that deal struck with a group of bipartisan senators on infrastructure. plus a tale of two stocks, nike and