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 fedex reporting results

but they're moving in opposite directions this morning. and no cups shortage talking about pressure on the supply chain jim, i'm not sure if infrastructure is still what you're focused on. >> a myriad of materials, caterpillar feeling this is the t time, when i watch the president it seemed like, okay, listen, we have this compromise but we're not going to accept the compromise and, david, i don't know about you, but it seemed like it was another kabooki dance out of washington >> because of the fact that they want the other bill to be a companion for reconciliation and you're not certain that came up on "squawk's interview with transportation

secretary buttigieg and whether it will get to the finish line it was unexpected they would have gotten as far as they did on a bipartisan basis. >> no one is taking back this part i think there is a moment. i know that it sounds strange but there is a benign moment in this stock market. now we do have at the end of the day i talk about jail breaks it's the first time that i did not feel it was zero sum you had banks go up and they're allowed to return capital, drugs go up, eli lilly but mostimportant you have tesla second most up yesterday and a welcome back

we found out that pan somic tesla was the weakness before we were focused on tesla, we spoke with tesla every day and i think it is poised to have a very good quarter. >> because of the 7.5 billion or just positioning >> i think what happened last night with nike and with starbucks was incredible what they said was -- what starbucks told me and nike, there is no rift and american companies that build plants there. one of the big worries about tesla, whether china would embrace it off the table >> well, that's interesting. i'm looking through the transcript of nike >> it was an unbelievable call >> came up 29, 30 times.

>> but never religious freedom, which is what i feared >> by the way, it is interesting. it was a great quarter and you can see the response will be very strong. numbers that were anticipated but china continues to be a key focus. they had a bumpy ride. >> may was really bad. but how about the last three weeks. >> june has come on strong >> june 18th a special day for selling. you're not going to see -- this guy used to come on our air a lot. >> i've been begging for donohoe to come on >> he doesn't come on. you know why he doesn't come on. why do you think >> the management is increasingly confident they go to 181 from 145 and donohoe did talk about strong brands last night. take a listen.

>> these are times when strong brands can get stronger. and each quarter this reality becomes even more clear. >> everyone is pointing to the fiscal '22 revenue guide, jim, which could exceed $50 billion, and through 2025 >> the fact that they gave, other than spacs that make up the 2026 outlooks, they gave it 2025 outlook and at one point there's a moment where matthew friend, the cfo, and he's not -- i'm not saying he's not phlagmatic but is buoyant. challenging everyone who says this thing is a huge company and it can't have growth this quarter was a transformational quarter because the u.s. was incredibly strong and direct to consumer >> that is an amazing thing.

>> selling directly and that's a lot of their growth. surpass $50 billion. >> nike direct grew 120% nike owned stores positive sales growth i think what this says is if you have a forward management, if they understood what had to happen and i think most consumer products companies right now are reading this and saying i am so jealous procter & gamble, all hands on deck meeting and say what the heck are we doing why are we not doing what nike is doing here is what i do. >> and then there's a secondary

market that we know is great h&m which apparently did upset the government >> i want to finish my thought on done show >> it's difficult for him to answer questions in regard to china that you bring up. >> nobody asked and the sense would be that you don't want to put yourself in a position to have to answer if you can avoid it >> they agreed, look, and i don't think they did this, but let's not bring up religious freedom because of when it comes to freedom of speech in this country. >> having to pick their battles on noncorporate matters. they were vocal on kaepernick. >> they were >> it's a different story. >> isn't that something? >> and the 40-year history in

china, serving the consumer there, the same thing ken johnson said and i'm sure tim cook would say it. we are a chinese company when we're in china and they say that as that's the answer that they give what you say about religious freedom that we are beacons of what they should be almost as if they are saying, look, we demonstrate the way free capital is, the great country that we are and that itself is enough to be the ambassador i don't know if that's the case. but, again, if i'm running the business, i would take a look at what google feels about that >> it is a risk. it has to be at some point we're a brand of china, for china. i get it and it's true more and more companies align under the banner that becomes a question

you're willing to speak out on this but not that. it's a key point for ceos in terms of where they choose to battle and not >> my charitable trust owned it. we had a great game and we took it, in part, because i felt one of these analysts is going to say you backed kaepernick on freedom of speech. how about concentration camps? how do you feel about concentration camps? >> no analyst will do that but a journalist might >> you don't think that's what they want to know about the model? how do you feel about 2025 >> i'm not going to ask that question, jim. you've had a million conference calls. have you ever seen -- >> congratulations on the quarter. some color on human rights >> i've never seen a human rights conference. >> i thought i'd ask you a very tough question that you don't want to answer >> i think it's interesting that journalists -- journalists --

not coming on, john. i'm inviting john right now. he's been on this show >> i love him. >> you love him? >> i've always enjoyed -- >> that's called hyperbole >> i was channeling some of you. i want him to sit right there and answer how do they get what is nike doing to try to alleviate what we -- what you often talk about off camera. >> the basic concentration cam m ps the new yorker, if someone went to ask that question, i think john donohoe would say, look, we are a good corporate citizen good corporate citizen a lot of money on the line >> talks loud. >> i think if i were an apple analyst i would say, you know what, i have much better conviction than apple will have

good numbers >> after this number >> i reamly think -- yeah, sky works builds there i would buy sky works. i thought it was the blueprint -- yesterday it was like a one-two punch you had kevin johnson saying we're cool in china. >> which we'll talk about after the break. >> and then john donohoe say we're really cool in china hey, hong kong, apple, the publication, didn't come up. didn't come up and speaking of moving those goods around the world, fedex beats by 2 cents the guy, jim, i know you were talking to becky and joe, not bad but i guess not u.p.s. enough >> going to take down u.p.s. on it and that's wrong. look, what happened with fedex was the fourth paragraph he goes, the labor market in the u.s. over this weird is

challenging, adversely affecting hiring and leading, significant re-engineering basically there aren't enough people people want to hear more planes. this stock will go down. every analyst raised numbers every one of them, sell/buy. this one you come become on monday and you start buying it and, frankly, i thought it was a really good call just that one part was bad one part fedex is doing very well what >> nothing fedex conference call. i compared it earlier. i can say -- i never appreciated the work in the end, can i say melville holds up >> really? >> he holds up don't forget, a lot of people die trying to get moby dick

including starbucks. starbucks dies in that lives in this. >> we're going to talk about what ken johnson told jim last night. an interesting story taking place at starbucks we'll talk some supply chain issues, how the company is navigating that. futures do look good the nasdaq is looking for five straight wins. we haven't done that since late january. a lot more "squawk on the street" straight ahead ♪ music ♪ ♪ dream, dream when you're feeling blue ♪ ♪ dream, dream that's the thing to do ♪ ♪ music ♪ when you see value in all directions, you add value in all directions.

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there's no cup shortage at starbucks, our hot cups, cold cups and, as you said, we in introduced reusable cups we paused during the pandemic for safety reasons we have plenty of cups to serve them >> the bigger headline was where vaccinations are up, cups are up >> one time you screw up and the story was bogus.

cold drinks, good margins. i think vaccinated stores the stock is a buy knowing what i know now, the need to add more starbucks, adding starbucks, this is a company that is so on the move one of the things he said was the article about it that made up this stuff about the cups also made up the stuff that there's no innovation. the number of new products and innovation is basically at an all-time high. a lot of stuff you read is wrong. it was plain wrong >> it's interesting the number or the percentage of tickets

that includes some food is up as well this is what johnson said about that >> we've had some shortages in the bakery case. that certainly is true you look at what we've done to get us in a much better position and you just think about it. when you turn this on so rapidly it tests the elasticity of the supply chain and if there's one area we've been focused on it's our supply partners who assemble breakfast sandwiches and some of the food items in our bakery case that's where we've seen some pressure >> there are some supply issues. he's abject about it won't hurt the earnings. i think it's the brewed cold coffee but everybody has supply chain issues our country has not solved what it takes to get from "a" to "b." and freight is the thing most often talked about

i thought kevin just told a great story and when i was finished i said the reason -- one of the reasons it's been going down is people -- they feel people can't make it. they're not going to be able to make all the new stuff which is where the margins are all false. all false. >> we don't talk about the variants very much, but it's a story in sydney today and in germany and in israel and taiwan we have 16 states in this country seeing cases up on a seven-day average. >> the deaths are 300 and change and people look at that. there was an argument about people who got it after being vaccinated not that many. but it's something that's probably going to be in some places there are states that feel -- >> and that's where you have the higher risk. the most at-risk group has the

highest vaccination 65 and older. >> but the supply chain, a lot of places aren't making enough things because there are still employees that can't go to work and we forget that a lot of where there is covid is where america manufactures that's where we make it. right-to-work states >> that will be an issue as we await jobs friday a week from today as we get more estimates today. i think bofa we'll get cramer's mad dash. futures look good on this friday don't go anywhere.

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let's get to mad dash. about seven and a half minutes before we get started with this final day of trading you wanted to talk netflix i left my copy over there but you can use yours. >> this is credit suisse which is saying something. >> not because people aren't showing up to work it's because of lawsuits >> antitrust no antitrust about this recommendation one of the few faangs. they have an absolutely great pi piece. if content is king in streaming, netflix still wearing the crown. >> i read the piece earlier. sorry. 23 or something like that. >> it's 18 and that i've never seen it this

cheap. david, they have a chart it's a pie chart >> 18 times i did pause for a second, 25 you don't usually see a p/e -- >> on the spac it's three times. there's an option that shows you netflix is 25, amazon prime 26 amazon prime is doing so well. live tv, 22. what i thought was really interesting they have hbo max. that's three >> right >> got a long way to go. let's talk about the stock for one moment before we wrap up here you can see where the high was >> it's going here this is the piece i've been waiting for. it really is and, david, don't forget a lot -- they were hurt by covid you couldn't do a lot of programs but, david, there is "bridgerton" season two, which i will like. "stranger things" season five. this is a good call. covid winding down, there will

be many more, many more movies and series i think this stock down 2% year to date, year low. >> you think so? >> oh, yeah. >> okay. >> yeah. >> going to the club >> i am. $17 billion they spent it's only $17 billion a year on content. >> and gaming? it was worth every penny people laughed people laughed at amazon people laughed at tesla. people laughed at gamestop people laughed at amc. the last two were pretty funny >> got a lot more "squawk on the street" for you including the opening bell coming right up

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

keep your eye on microsoft closing with a $2 trillion market cap for the first time joining apple in that club we're going to keep our eye on facebook as we got that announcement of windows 11 and some of the consumer news last night.

>> they're going to have a big upgrade cycle. i think microsoft is the least dangerous large cap stock there is you never hear them mentioned anymore. they spent their time on the cross in 1999 and 2000 and immunized them >> then it was all about the cloud. put that chart up again. you can look at it all day long. look at that thing >> when you get a ceo who is loved, a fantastic cfo who is a just champion, that's who you get. >> and consistently underestimated and underrated when he came in. "forbes" had a list and it's nadela >> before the pandemic, i tried to get out of him all the great things that he's done, doesn't want to hear it. another person who says it's the

team, it's the team. >> it's working. apple. not far from a trillion when we got $25 billion. >> it's really helping >> hitting all-time highs yesterday. the opening bell it's origin materials, maker of plastic, interesting spac. jim, i know you thought the carmax numbers were better than expected >> i thought it was a really good quarter tremendous number. i mean, they're making so much per used car making over $2,000 a car 342,000 cars purchased i think it was an exceptionally good quarter

i think that could cool down as we get more semiconductors which we will. >> mrs. car wash is coming public next week >> johnny carson i went to mr. car wash the other day. >> listen, it's grit to have all these people back in the building >> it is >> celebrating it's a big moment. it is definitely a moment. >> mr. coffee. >> joe dimaggio. >> of course >> that's all i've got for you >> i don't think you'll get a lot of new companies called mister >> mr. tibbs i can't believe you haven't mentioned the bank when are you going to mention them do we have a spac report >> yes, we do.

which would you prefer >> the last part there >> brandie never stops >> gets me every time. every time >> let's stop spacs. what's start to go happen and we talk, of course, about straight ipos like mr. car wash, but many of the spac yields that we have watched occur when we brought the sponsor on are now de-spac-ing becoming fully public companies under a ticker symbol representative of the actual company, no longer the spac, and we have about, so far in june -- this week was not that big for filings we had six filings we had fouriv ipos. four went public and you had new deals -- eight new deals announced.

what we're seeing now is 34 companies so far if june have de-spac'd. >> how could they find new companies to buy >> we knew they were going to enter the market and vote but the ipos are enormous when you throw in the companies via spac. >> at the same time, david, they became better investments since may 12 when we had the cpi number and then what happened people realized the feds will slam on the brakes >> it's no longer a spac the s.e.c. is letting them through. there is more scrutiny now we don't have a lot of new rules but there is new accounting and more focus on the pipes. many of them coming without pipes, the new deals that are being announced.

and we point that out many times. >> it is great that our country has risk capital >> listen, automated company embark earlier this week it's a $5 billion -- >> is he old enough to drive >> he's 25, yes. >> how old is this guy >> there you go. it's sort of a key inflex point. they raised a lot of capital and that goes towards continuing to build the business. >> i think a young person, someone after they put money in an index fund, i picked five spacs and put them away because some of these, i think there will be some that are incredible home runs but they're going to net out to be positive i really believe that.

>> as for the banks we'll start getting earnings a week from tuesday. and when do we hear of buybacks? >> i think monday we'll hear i have to tell you there are stocks like citi i expect getting hammered >> why are the stocks down listen, i understand we have -- that everybody would pass. is it surprising you the stocks are down >> i think people are misunderstanding what's going to happen when they announce billions bought. perhaps someone is saying the trading mon was bad. the idea everybody -- the

reg regimen, the whole examination is now off are people worried about the banks? >> not many. mike mayo's report, obviously has been around forever, $200 billion of excess capital. >> there is. people feel they've had their run. a lot of them feel the one that is really right is wells because they're able to buy back 13% of their company and i think the others, people are worried about the quarter. >> maybe sales are more muted, perhaps. it's been pretty quiet >> it definitely is. you look at these and say, all right, what are they going to do do something risky to make the numbers? i don't know they do have a lot -- >> releases may come but nobody really cares about that. >> it's charlie sharp with the biggest buyback but i think this

is a misjudgment these stocks are down it's not the balance >> was it just they ran so much? it could be. >> they're all up nicely for the year all up far more than -- other than citi, far more than the market >> citi can buy a lot of stockback. >> the laggard of the big guys, what, 14%? >> look, sometimes when it's a mystery it's wrong >> one name that's doing pretty well this morning is space the operator license, jim. >> the combination of the fda sanctions two different drugs that may not work. are you beginning to see that the biden administration is more

pro a lighter regulation than the trump regime >> when it comes to alzheimer's drugs. >> not when it comes to oil. i found that this government seems to favor edgy stuff. and the appointees may not be liking faang but they sure kind of like novel, novelty >> virgin galactic this is one of the early ones there quite some time back >> on space, on mobility, certainly trying to help industries and turn corners, to your larger point, tougher on energy certainly antitrust, big tech and maybe banks? >> i think they're okay on banks. i haven't seen much. the thing that blew me away was how pro they are on u.s. solar

and how they're willing to go after really powerfully after china, more than trump did there's a great note by citi >> yesterday >> this is an essential, yes, from yesterday i think first solar is a buy i think end phase is a buy i think the u.s. government has decided we are done with the chinese wrecking our industry. >> we're going to have to subsidize our industry because they've subsidized theirs so significantly which is why for years they have been taking complete market control. >> you keep them out, you enable our companies to hire a lot of people and expand. solar has come down a great deal >> you could say the same thing what will the chinese do when it comes to ev?

we forget, tesla sells a lot they are developing an enormous in terms of battery, ev vehicle and everything else we will be another battle, jim. it will be a battle. >> and tesla wins that and lose against the pickup truck >> you're saying -- >> they lose against the lighting in "breaking bad." >> okay. don't worry about it musk, not a factor >> really? >> not a factor. he will not be a factor in the pickup business. >> $662 billion market value >> but they've never met the likes of jim farley.

>> he is about ford versus ferrari. >> he is you know who played him? >> matt damon. >> oh, i'm sorry he played another person >> jim farley is so different from the traditional ford guy. he's unbelievable. the maverick, can't get one. the bronco, sold out this guy has game plus he's doing something ford has never done he's decided to stop losing money. >> a good place to start

>> a very good place to start. >> that was quick. >> i've got it >> the john coltrain version you were talking about starbucks earlier, that's going to be the highest level announced since the beginning of the month. they say more macro than micro but, again, an example where cost pressures can be managed. >> do they have scale? they say they have scale most do not have scale and we know they may not have made it olive garden i want to emphasize again excellent pasta, fabulous salad, great rolls >> i want to emphasize that again? >> remember when activists were like foot salt in the boiling water?

it works >> you must go to longhorn you must >> i'm not >> they're up 13%. >> i'm not going to longhorn >> where are you going >> just to defy you. nike up 14%. basically a new high someone on the call is going to bring up religious freedom >> and they didn't. >> no. no one broke ranks what they talked about is new jordans. they talk about direct to consumer -- >> they talk about the euro -- >> they talked about the olympics >> soccer. they've talked about the olympics they also had a great quarter. >> it was exceptional and the conference call was so great

i thought that no one would have a conference call. it's a bestseller. it is. it's on "the new york times" bestseller list. remember dave and busters. end phase, we're back. that will take you back to almost the beginning of the year >> people like comfort a lot of people felt that once the pandemic crested you would go back to wearing the same old shoes and people stayed with nike

athleta is doing very well people should be looking at these comfort clothes. people want comfort more than any -- gap should be at an all-time high. you know what to do. >> talk about clothes, this figs, the company that went public -- they make very popular medical scrubs i'm starting to think people are going to wear those all over town now >> my stepson wears those. >> stock is up another 4.5% today. it's $45 >> that's what people are wearing. if you venture outside of your apartment. >> i venture out all the time, walking the streets, looking in the garbage everywhere. >> would you get me some milk?

>> i thought we were going after corn milk. >> it turned out to be huge. corn milk is huge in china already. >> we're late on that, too >> we're late on corn milk >> yes >> figs. >> david, you have to stay up -- sarah is very good on ath/leisure. she's on in the afternoon. >> i'm aware i sometimes do the program with her. >> you did the other day i thought it was special >> so we have s&p record high, nasdaq up five in a row, the first time since january vix below 16 let's get to bob pisani. >> reporter: happy friday. a new high on the s&p but not a lot of individual highs. we're not seeing a lot of them target is the only one so far this week. you know what we are seeing? people on the floor of the new york stock exchange. you can ring the bell and come down on the floor for the first time that's why you hear a little bit of noise behind us boy, does that make me feel

good as for the sectors, steel is doing well, materials. this is the remnants of the infrastructure play that's been happening all week around that infrastructure deal. energy flattish. banks had a great week the banks index up almost 5% this week. tech is on the flat side if you want to take a look at what the risk is, you can see today, and the guys were talking about this, the earnings disappointment everyone thought nike would have great numbers. why? they've had them in the past the percentage of earnings beats for nike yesterday zero it was in line nobody was expecting that. look how they've beaten in the last several quarters. that's a disappointment. then take a look at nike and what they did yesterday. 82%. that was even above what the whisper numbers were for nike and look how they've beaten consistently is there any sproisurprise to se what the numbers are doing nike is hitting a new high and you can see fedex is to the down sigh so the risk here is an earnings

disappointment essentially where people are expecting you to do really well above the actual numbers. the good news is that fedex is the outlier here adobe, kroeger, oracle all had strong results fedex is the outlier the big beats are continuing to happen here. i thinked they spend $3 billion on infrastructure in the united states and the market thinks so look at some of these infrastructure plays this week terex with all the work platforms. manitowoc and then some of the other stocks like deere doing well the other big names like century aluminum, granite construction, big road construction companies. dycom, big engineering companies, all doing well this is in anticipation of this maybe splitting in two is a good idea i know it's iffy whether it can pass or not but the market believes it's good news. today is the russell

reconstitution the russell 2000, the 1000 and 3000 you only need funds, index funds. they change. you don't have anything to do with it. often the heaviest buying trading day of the year is second or third or fourth one. what's interesting is the russell 2000 is where the money is if you move out of the russell 2000 into the 1000 you usually get selling pressure here is one to watch today how about gamestop guess what gamestop is going to be going from the russell 2000 into the 1000 probably a little selling pressure towards the close guys, back to you. >> okay, bob, thank you. bob pisani take a look at gamestop clears ceo richard fain, royal caribbean's celebrity edge the first cruise ship to sail from an american port in more than 15 months he'll be joining us.

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get an update on the collapse of that 12-story ocean front condo tower north of miami beach. the president has approved an emergency disaster provision search crews are frantically searching for survivors in the rubble the mayor says four are dead, 159 unact have accounted for the news with shepard smith live from surfside, the rescue efforts and what may have caused the collapse our coverage begins at 7:00 p.m. eastern time

tonight? >> david is going to deviate from his routine brent saunders, back, bigger than ever, chairman, beauty health what did you expect? i saw him at a restaurant. he's ten years younger than he was. >> is he de-spaccing >> yes >> we've already had him on.

not allowed to have him on twice. you know that's a cnbc rule around spac. >> oh, boy >> i want everyone to have a great weekend. i am having brent saunders on, looking younger than ever. he is the fountain of youth. >> fountain of botox youth brent saunders, what the heck. they make everybody else feel geriatric. look at that picture not a line in his forehead no double chin how do you think that happens? >> chemistry >> how about botox and kybella will you look at that? ne" e'll sue tonight "mad moy,6:00 p.m dow is up 170. back in a moment introducing nervive nerve relief from the world's number 1 selling nerve care company. as we age, natural changes to our nerves occur which can lead to occasional discomfort. nervive contains b complex vitamins that nourish nerves, build nerve insulation and enhance nerve communication.

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the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home. good friday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla live at new york stock exchange. morgan brennan has the morning off. fresh high on the s&p. nasdaq was shooting for five straight wins. has settled back by about 14 points let's get to rick santelli >> our june final on michigan

sentiment and the associated inflation aspect if we look at the headline, we take out the 86.4 mid-month read and replace it with a slightly less 85.5. that is the new june final if we look at current conditions, well, the 88.6 now replaces 90.6. 83.5 on what lies ahead expectation wise replaces 83.8 you can see there's been a d deterioration from mid-month let's get to the inflation data. one-year inflation, mid-month, 4% that moves to 4.2% remember, prior to that, if we look at may, may was 4.6 to find a higher number, you had to go back to august of 2008 on the five to ten-year read, we replace 2.8 with 2.8 mid and month final are the same may was 3.0, the highest since march of 2011. both those metrics are easing

back just a tad. mike, back to you. >>. >> thank you very much we're past 30 minutes into the trading session. here are the three day movers. fedex, stock falling despite beating earnings and revenue forecast ceo saying operations are being crimped by an inability to find enough workers and the company will ramp up capital spending by 22% this year to deal with delivery delays. that stock down more than 5% plus, virgin galactic shares flying high after getting the go to fly passengers to space we'll end with carmax, getting a boost by pandemic preference for cars over public transport also up more than 5%, carl >> another big earnings mover is nike, soaring to some all-time highs. shares up double dijs. revenue beating forecast, pretty good outlook sara eisen with us on the blow

outcover i have to wonder what you make of this guide and the print. >> good morning, carl. yes, it was a blowout. the 14% move higher in the stock is a reaction to three things. a huge beat for the quarter, better guidance for 2022 and a stronger long-term outlook, which was a bit of a surprise. i'll give you a taste of the numbers. revenues overall, group 21% compared to the same quarter pre-pandemic, 2019 strip out all the pandemic store closures and distortions and it gives you a sense of how strong the brand momentum for nike is right now. other highlights north america, a third of sales, the strongest region for a change lately grew 141%. if you thought reopening the economy here in the u.s. meant no more athleisure clothing or online shopping, clearly not the case for nike. direct sales, which include digital and the sneakers app grew more than 70% that helped margins jump it's a more profitable business

along with fewer markdowns of sneakers and clothing. europe came back strong as stores reopened there. i will say china was a miss as the social media backlash surrounding the controversy weighed on sales there the company did say a number of times, executives on the conference call, that china has been improving incrementally every month and the company has deep, long roots with the consumer it's still the number one sports brand, and ceo john donahoe did not seek worried the kicker, which already triple after hours on the conference call, nike did a pseudo investor day. they gave long-term profits for 2025, which is a real step up for this company historically. and explains a lot will of the rerating in the stock today. the reason nike's brand is very strong, so is converse and jordan, which they own jordan's stock tripled in the

last quarter it really is, guys, this transformation for nike to a digital company and direct-to-consumer company it started years ago early under former ceo mark parker got supercharged obviously by the pandemic, and by john donahoe, who came in from the board to lead this company from silicon valley, having led service now and ebay and it's a more profitable business and it continues to drive growth. everyone knew this was happening at nike, but between the china worries and just how strong that outlook would be on the business shift, that's what's catching investors and analysts really offguard today mike, carl, david. >> yeah, sara, i'll start. come back to china you went through so much of it so well, especially direct china continues to be a question you brought up the xinjiang controversy. we know what's going on there is the humanitarian crisis, they're

imprisoning people, the uighur minority, and nike has made a lot out of its bona fides on social justice and is silent on this what can we expect, if anything? does it still represent a potential risk for the company if it were to start to speak out more forcefully? >> it's certainly a risk china is 20% of overall revenues and more than double that when it comes to a profitability. it's a key market and john donahoe and other executives went to great lengths last night on the conference call to talk about how deep roots they have there. they've been there for 40 years. they're opening a brand-new technology center in shenzhen as a sign of the commitment they say consumer loyalty is strong there was no mention of the humanitarian crisis, to your point. i will say what got nike and h&m and adidas in hot water is the

companies have spoken out against any humanitarian issues in that region but have since been quiet as there's been this huge backlash on social media driven by the state official media so, to answer your question, it's a risk. don't expect nike to get much more vocal on this because it's a really sensitive topic in china. they know this market really well and they know how to deal with the chinese government and so i don't think you'll hear much more on the political story of that unless somehow they're forced to from consumers because i think, you know, donahoe said it best, we're a brand for china, in china, by china, and that was a really clear statement to how they're approaching this issue no question, david, it's hurting, but the growth rate in china's revenue last month was 40%. it's about 17% this time it's making an impact but they say it's gotten better, which gives investors, i think be, enough hope in that strong outlook and they talked about that numerous times on the call.

>> you mentioned the 2025 outlook so they embedded strongic long investor briefing in their call yesterday. we talked about how they -- they are up in the ranks with disney as one of the great brands being direct to consumer has nike previously had these five-year outlooks or is there a new kind of statement they have clarity and confidence in how they can deliver five years from now, four years from now, i guess? >> they actually do it periodically at their investor day. they haven't had an investor day for a while, partially because the world was shut down. i think they were planning to do one last year. that's one factor. they also just feel confident in that outlook because of the shift of the business to direct to consumer and because of how fast that happened during the pandemic online. the demand they have seen for

memberships on their sneakers app and on some of their workout apps just was so much stronger than even they anticipated. they felt confident now it was the time to do that. yes, thaiven given long-term plans but they're ahead. for example, they say digital will be half their business by 2025 it's already 35% of their business right now, which is way ahead of schedule in their previous long-term planning. they also took the opportunity in that to talk about growth areas like women's, kids and jordan those are sort of the three pillars of growth. yes, agree, it was kind of a surprise on the timing, but i think they just feel like that's what's happened to the business. so, they want to give investors that opportunity that's what caught everyone offguard we were talking about yesterday, it was the worst performing dow stock of 2021, down 6% going into the print not anymore. >> definitely not anymore, sara. as we know in the shoe business, it's all about intellectual property the i want to get your take on

this lawsuit from kanye west against walmart, alleging the company is trying to benefit from the popularity of yeezy >> kanye west and yeezy is going after walmart because on walmart you could buy what they call was a fake version of the foam runner shoe. i don't know if you have seen this shoe. it's very distinctive. it's very ugly, if you ask me. of course, whatever kanye does, even if it's ugly, sells out within seconds it sold out for $75 when they launched it on yeezy it's currently going on some of the secondhand retail sites like get on for more than $500. apparently it was being sold on walmart until this morning now i clicked on the link, you can't go there anymore i don't know much about the legal case but one thing that will come into play here is how much yeezy and kanye can go after walmart when it's sold after a third-party seller, which is walmart's response to this complaint and yeezy is alleging they're

missing out on billions of dollars. kanye has made a big case about how he wants to democrat ties yeezy and adidas has done a lot more launches. i'm not sure this is what he had in mind, having them sold for 25 bucks as knockoff versions on walmart. >> probably not. thank you for running through all of that for us and we'll talk to you later. >> see you later. turning back to the markets, the s&p 500 notching a new record high with the nasdaq also on pace for its best week since mid-april. joining us now to talk the rally in tech is brian nowak of morgan stanley. good to see you this morning we've talked about tech lately in the last several months just kind of as this broad category of reliable growth and it was all about investor preferences. a little less about. maybe the underlying fundamental and technological and earnings trend. is that pretty much still the conversation

in other words, we have this revival in faang to the cyclical cooling falling off or other things driving, for example, facebook up 25% year to date. >> i think that's -- good morning thanks for having me i think that's one of the factors. i think what's going on is more of a return to fundamentals. when you look across big cap tech and tech overall, the top line digital trends are not slowing down the overall trends in the advertising markets and shift from advertising dollars moving from offline to online to big platforms like facebook, like alphabet, it continues to accelerate the consumer expenditure shift from offline shopping to online shopping on platforms like amazon and all the other online platforms also continues to inflekt even as the world reopens. the top line fundamental drives are in place secondly, because these companies are so large now, these large bases of revenue are

translating into healthy multiyear profit and cash flow growth i think investors have more confidence to look into the back half of 2021, 2022 and say, these companies are not that expensive when you look at the type of free cash flow they have the potential to generate. i think it's a return to fundamentals of what's happening from a top line perspective and how we think about that translating into cash flow next year these valuations are still not stretched for big cap tech when you think about the idea of paying a low double digit free cash flow multiple from high teens to 20% free cash flow growth at a company like facebook, that's not a, quote/unquote, expensive stock >> in fact, as facebook flirts with a trillion dollar market cap, it looks like it will be above 346 on the share price to get to that point. i look at it, you know, relative to other metrics, aside from absolute market value, whether it is the pe, whether it is the

cash flow multiple it's very much in its multi-year range. it's not gotten out of whack however, it's also, if you listen to all the goldman sachs hedge fund data, the most popular stock in hedge funds right now. i wonder what the incremental edge is to the story here. is it, hey, you want to ignore the regulatory risks, then you can capture further upside >> i think it's -- i think it's going to come down to facebook in this case is going to come down to their ability to continue to post faster than expected advertising revenue growth over the next, let's call it, two years just from both their core products, core, big blue, news feed, instagram and instagram stories, as well as new products that are emerging there's a lot of untapped monetization potential at facebook, like reels they're pushing hard into shopping products to more directly link advertising

dollars to transactions on the platform they're still not monetizing messaging or whatsapp or virtual reality. you sort of step back and say, how can facebook keep growing as fast as it is, even through large numbers, it's because you have so many still existing untapped monetization on the platform because they have so much engagement and so many users in their ecosystem. >> if we could finish up with amazon, which is a stock that's down week to date, despite a lot of the prime day noise obviously, it's been a bit of a tease for nine months right now being really range-bound what do you think principally is going on here, aside from just digesting a big gain prior to that period? >> tease is a good way to describe this. really over the course of the last 180 days i think the market has been stuck in this ham center wheel of concerns of

e-commerce deceleration in the back half of this year we still think that because amazon's prime subscriber base is bigger than ever, the record number of subs they added, the way the prime subscribers typically age very well and spend more on more categories and actually spend more on amazon, we actually have pretty good confidence in the company's ability to post healthy e-commerce growth in the back half and into next year, which when you layer that on top of some of their higher margin revenue streams like advertising and amazon web services moving through the model, we are over 30% above street estimates on profit next year so, we've been stuck sort of in a debate around revenue deceleration, buttal i think really the bigger picture story is, we think revenue will be more durable and the way in which the high margin revenue streams are growing faster give us more confidence in next year's profitability and a gap earnings basis, this company is very inexpensive. >> all right

we'll see if that does come through and if it offsets some of the ceo transition and regulatory talk. thanks very much, brian. appreciate it. >> thank you much. as we go to break, take a look at the road map for the rest of the hour, including the president saying he has agreed to that deal on infrastructure we have details. one of tesla's earliest investors selling it's billion dollar stake in the company. and after 15 months, cruises are finally returning to u.s. ports. we'll discuss that with the ceo of royal caribbean in a cnbc exclusive. we have a lot more "squawk on the street" straight ahead incomparable design makes it beautiful. state of the art technology makes it brilliant. the visionary lexus nx. lease the 2021 nx 300 for $359 a month for 36 months. experience amazing at your lexus dealer.

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xfinity internet customers, switch to xfinity mobile and get unlimited with 5g included for $30 on the nations fastest, most reliable network. president biden striking an infrastructure deal with bipartisan lawmakers >> president biden is throwing his support with a bipartisan framework for roughly $1 trillion spending on infrastructure there's a catch. democrats need to pass the rest of his economic agenda as well the deal negotiated with five republicans and five democrats calls for $109 billion in new spending on roads and bridges, $66 billion on passenger and freight rail, $65 billion for broadband and $7.5 billion for ev infrastructure. yesterday biden said compromise can also be a win and implore democrats to take the deal >> my party's divided but my party's also rationale

if they can't get every single thing they want but all they have in the bill before them is good, are they going to vote no? i don't think so >> but some progressives have already dismissed this package as too small they want to be sure that a reconciliation bill gets done as well with investments in human capital and tax increases on corporations and the wealthy >> it's not going to be the case that there's going to be an infrastructure train that leaves the station and leaves child care behind, leaves green energy behind, leaves making billionaires and giant corporations pay their fair share. we have to have the whole thing, not just cleave off a little piece of it. >> biden vowed yesterday he would not sign a bipartisan infrastructure bill unless that other bill makes it to his desk, too. carl >> thank you for that. what a week. lots of news with more on the president's deal with the bipartisan group of senators, we're bringing in jim storrs,

award-winning columnist for "the new york times." great to see you. >> great to see you, carl. >> i'm struck by what you said in some ways this deal is something you never thought you'd see again. >> i've pretty much given up hope i have been writing about infrastructure, i have been calling for infrastructure investment you want to talk about competition with china china has been pouring trillions into very sophisticated infrastructure investments for years. we have been doing virtually nothing. but given the gridlock in washington, i didn't think it was going to happen. suddenly it has and i'm very excited about this i think we need this i think there is huge public support for this it is truly a bipartisan issue i guess my main concern at this point is, i don't see why it has to be held hostage to a whole other range of programs. you know, nancy pelosi mentioned child care well, i don't understand why that has to be tethered to the

infrastructure bill when so many people agree that we really need this spending. >> right your point is exactly what goldman said in the minutes after that presser with the president yesterday, which we're looking at now that is they said the deal omits items we believe every democrat will want to pass like the extension of the child tax credit, so we believe the odds of a reconciliation bill passing are still fairly high. in the end, doesn't this have to go back to partisan measures >> well, i think the noninfrastructure part of it will be very partisan. you know, that's why i don't understand why they have to be linked like this because the democrats can pass a social welfare plan if they want using the reconciliation measure they are going to have to get -- i mean, no republican is going to support that, so they are going to have to get the moderate democrats on board, especially someone like manchin of west virginia they'll have to line up every

one of those votes but they can do that with or without the infrastructure package. that's why i'm somewhat puzzled. i can understand the democrats want to reassure the progressive base that they're not forgetting about these issues, that they are going to go forward, but i don't understand why they have to be on biden's desk at exactly the same time. by the way, we haven't even talked about the tax reform part of this. that is a hugely contentious issue, apart from all the additional, you know, education, child care, spending we've been down the tax reform road before and it is really difficult and thorny if you want to add that to the infrastructure bill, it's really going to be difficult. so, i would like to see them move ahead with the infrastructure bill. they have ways to pay for that, including the fact that inbe fra structure is a real investment i noticed they have allocated $60 billion in enhanced tax return because of a more robust economy as a result of this

investment so, you can pay for the infrastructure without having to reform the whole tax code. >> i do wonder on the pay fors, jim, i mean, better irs enforcement, this term program integrity of unemployment benefits, spectrum sales, spr sales. do you look at -- do you look at a scants of this at all? >> yes i think this enforcement plan is very, very speculative i don't doubt that they can -- you know, they can put the screws on some people and squeeze out some more revenue with greater enforcement, but that is, by no means, a sure thing. and this kind of nickel and dime approach to it is -- i think it's very -- it's far from clear that will actually come through. i do feel if we get the programs under way, first of all, given the spending that has been going on, we can afford $1 trillion in

infrastructure spending, even if it is done through borrowing i think when people realize how much this is needed and how welcome it is and how popular it is, when the products started arriving in people's backyards, they'll find a way to pay for it >> jim, you know, you mentioned tax reform of course, one of the other subjects we talked with years with you about is taxes. i know we talked a few weeks ago when pro publica came out with that story i don't know be if you saw the follow-up -- >> it's astonishing. >> it's amazing, right paypal stock give me your take on the roth i.r.a. and how it's become somehow a tax advantage play for billionaires. >> well, this is an incredible story. when i first started reading that someone like a multibillionaire had billions of dollars in a roth i.r.a., my first question is, how did he get a roth i.r.a.? i can't get one.

how did he ever get one? number two, how did that amount of money build up in there when you can only put in $2,000 well, number one, i was astonished that he actually had a year, 1999, when he only made something like $73,000 that, i think, should bear some more scrutiny. let's assume that's true he opened the i.r.a. and then he put in this founder's stock that -- thousands and thousands of shares of paypal valued at one-thousandths of a penny that was clearly a scam. let's assume that that was okay. maybe the statute of limitations had run on that. this should not happen i realize there are very few examples of this maybe a couple other paypal people to be identified. it's a very unusual situation. nevertheless, this is the kind of thing that sows so mp

distrust of the fairness of the tax system that this cries out for reform personally, i would say, get rid of the roth i.r.a.s. i've never understood the rationale for them as opposed to the regular i.r.a. where eventually someone gets taxed. >> they are definitely driving policy discussion in the last couple of months jim, have a good weekend we'll talk soon. >> great to see you all. royal caribbean's "celebrity edge" is getting ready to set sail the first cruise to depart from an american port in more than 15 months we'll speak with the ceo in a moment we'll be right back. stay with us (vo) this is a place for ambition. a forge of progress. a unicorn in training.

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you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home. now for our etf spotlight, taking a look at the consumer good sector, ticker iyk, trying to hold onto its yearly gains. up about 1% this morning biggest holding, tesla, is up more than 10% over the past week of trading this is panasonic said it sold its entire stake in tesla for $3.6 billion during the most recent fiscal year for pandemic.

pandemic was an early investor in tesla and a major battery supplier for the automaker. as we go to break, let's check on bitcoin sinking again in what's obviously been a volatile week low for the week around 2808 seema mody with ft. lauderdale. >> reporter: an historic moment for the cruise line industry many questioned whether this day would happen but here we are on royal caribbean's "celebrity edge," the first ship to set sail from u.s. coast an exclusive sitdown with the royal caribbean ceo, how many passengers will be on bod d e hotly the debated topic around the vaccine the world's first fully autonomous vehicle is almost at the finish line what a ride! i invested in invesco qqq

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welcome back here is your cnbc news update at this hour. at least four people have died as a result of the con co-collapse in surfside, florida. search and rescue operations continue to search for 159 people still minutesing. the mayor of miami-dade county telling reporters, there is still hope >> we will continue search and rescue because we still have hope that we will find people alive. that is exactly why we're continuing later today former minneapolis police officer and convicted murderer derek chauvin will find out exactly how long he will spend behind bars for killing george floyd the sentencing comes more than a year after floyd's death sparked mass protest. the cdc is investigating multi-state salmonella outbreak due to backyard chickens and vice president kamala harris is heading to el paso, texas, today to visit the

u.s./mexico border after facing tough criticism for her absence. you're now up to date. david, back to you >> thank you, rahel. now down to our seema mody on board the "celebrity edge" and alongside a special guest. >> david, thank you. yes, an exclusive sitdown with richard fain, ceo of royal caribbean. thank you for your time today. >> thank you for having me let's just talk about this moment a 15-month shutdown, fighting with the cdc, political backlash, a lawsuit from the governor down here in florida, and here we are, about to set sail on the first ship since covid began. how does this feel right now >> oh, wow 15 months we've been waiting for this moment. i don't know how to describe it. i will tell you, up be, when i came on yesterday and i was greeted by one of our crew members, he said, i feel like i have come home the vibe is throughout the ship. we are so excited.

we've waited so long for this moment it's here and it's magnificent. >> let's talk about the "celebrity edge," the ship we're on all crew are vaccinated, almost all crew are vaccinated with the exception of two adults and 24 kids how do you manage a ship and make sure those unvaccinated passengers don't present a risk? >> fortunately, when you get to a very high level of vaccination, that really covers you. we do know there will be cases on board cruise ships. i think the important thing is we make sure they're isolated cases and they don't become an outbreak we've seen that happening and we've seen the protocols we have worked out and worked with various authorities actually work so, if somebody gets sick, we know how to isolate them the fact is, the vast bulk of our people choose to get vaccinated the result is that almost everybody on board is vaccinated 99% of the people on this ship will be vaccinated. >> going forward, you're not mandating the vaccine. you're recommending it

lou do you make sure covid doesn't present a bigger risk for those at sea on "celebrity millennium," two people >> we will have examples that happen actually, i think those have proven because when you have those two examples, those cases were handled, nobody else on board was inconvenienced in i any way. those people were isolated the contact tracing systems we have made sure we kept it local to those people and they were isolated and sent home everybody else carried on with their vacation uninterrupted we will have unvaccinated people, but the number just seems to be so low that it's not a medical problem, and the cruises can go on, as we say, well over 95% are vaccinated. >> let's hope it stays this way, especially with the delta variant that's a source of attention for many people. let's talk numbers this ship is sailing at 36%

capacity analyst at ubs says ships have to run at 40% or more to be profitable how do you see sailings going forward. can you get back to 50% or 60% by end of the year >> oh, you know, i think we wanted to start slow you know, we've been -- we haven't been operating for 15 months our crew haven't been operating on ships for 15 months we want to start slowly, build up, give people a chance to practice, give people a chance to go back into the experience also, remember, we had to do this with very short notice. here the ship is a third full with no notice, almost a few weeks. we normally book months in advance. i see the untapped demand, the people who are really anxious to get back to sea, i see that as very strong. in fact, we're overwhelmed with people calling clearly want to go back to

normalcy. >> i spoke to some passengers, some were excited and many were cautious saying, we're going to get on board and we're not going to disembark at every port we're going to wear our mask here and there but not partake in all the excursions and activities is that a concern for you that each passenger won't be as profitable as pre-pandemic >> no. we planned a buildup and we know it's slow and steady we're in no rush to push that forward too fast we learn at every stage. i think one of the things we've seen -- remember, we're already operating 18 ships around the world. we've seen that. people come on and they're a little nervous and then they see the protocols we have and they get more comfortable and they say, oh, my god, this is wonderful. one of the expressions i hear is, we feel so free because here they know they're surrounded by people, almost all of whom are vaccinated they know the protocols of high again, everything else is very high when they get on board, they get

very comfortable we're learning and they're learning that's why, as we go forward, innocent june of 2021, but later in this year and next year, the comfort level will be terrific and this is the way we get there. >> the future bookings data, where does that stand right now? do you see royal caribbean taking out more financing options? you raised about $10 billion to $12 billion in debt since the pandemic began. >> i think we've been very successful in raising money during this period and you've seen as people see the end in sight and the starting up, there's been a very steady decline in the cost of doing it we're almost back to the cost we were pre-pandemic in terms of what it cost to raise funds. so -- but we raised the funds we need and we're feeling in very good shape. >> no more. >> we're feeling in good shape for that i never say no to anything, but i do think we have the capacity

that we needed and i see us building up as people get comfortable with cruising again people see how free it is. we can sit and enjoy this. pent-up demand people are tired of being cooped up at home they want to get out and they're booking accordingly. >> one day away from "celebrity edge" setting sail. >> yes >> and you will also be seeing the ceo of royal caribbean thank you for your time today. >> thank you >> back to the studio. >> seema, great stuff. as we go to break this morning, take a look at some of the biggest gainers for the s&p this week a lot of consumer names, but not surprisingly, nike leads the charge on this blowout numbers from last night. it's a big part of the dow, which is only about 100 points from breaking even for the month. meantime, june is pride month. all month long we're spotlighting cnbc contributors, business leaders and cnbc anchors and producers.

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walk to "squawk on the street." the international brotherhood of teamsters voting in favor of a resolution to support, fund and supply resources to amazon employees and union efforts. the decision receiving strong support. nearly 96% of union delgsz voted in favor of that resolution. they took a blow in april when workers at a warehouse in alabama overwhelmingly voted down joining the retail, wholesale and department store union. we talked to teamster director

for amazon didn't seem concerned about past failures to unionize. >> the workers did a great job of bringing those issues to the forefront, regardless of what the vote outcome in the end, you could each is a very large percentage of the workers that worked at amazon were very concerning as far as how they were being paid, and most importantly, the safety and health conditions happening on the job. amazon's clearly having to respond to that. >> team ssters haven't said how much money or staff they'll devote to the matter and amazon hasn't responded to our request for comment. interesting. people say prime day was more of a pedestrian prime day this year and being replaced by not just anti-trust risk to the house and union risk as well. >> we're talking more about the drivers. i think that's important as opposed to people who work in the warehouses when you're talking about the teamsters. he was drawing analogies to the pay, for example, to u.p.s. drivers which is higher than

those who drive for amazon, as it continues to build on that logistics part of its business in terms of actually taking control of getting things right to the consumer. >> right also happening as the company itself has basically said, we want to be a great employer. everything pulling in the direction of, it's a tighter labor market than it should be it's acting tighter than you would think with 7.5 million jobs down from 2020. it's not as if the company is saying, we think everything's fine jeff bezos handing it off with, we want to be the best employer in the world what does that mean? >> incredibly high turnover. these reports of how people are treated and hustled out of the job. >> hired 500,000 people last year it's a number you can barely even get your head around. obviously, hardly that many companies employ that many. >> morgan stanley with the note

on same-day delivery and third-party logistics are being talked about they're geniuses at selling. >> i can remember doing the amazon doc, i don't many how many years ago and i had interview of a woman who had worked with the company and she talked to me about same-day and i said, come on. are you kidding me and here we are. coming up on "tech check," don't miss tom siebel making a big push for employees to return to the office. that's coming up at the top of the hour. dow is up almost 200 and we're still around 4275. stay restless, with the icon that does the same. the rx crafted by lexus. get 1.9% apr financing on the 2021 rx 350. experience amazing at your lexus dealer. that building you're trying to buy, on the 2021 rx 350. - you should ten-x it. - ten-x it? ten-x is the world's largest online commercial real estate exchange. you see it. you want it. you ten-x it. it's that fast.

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dave, good morning >> how you doing >> all right thanks talk a little bit about specifically what your firm does, how you kind of surveil this market. what we know of things like cryptocurrencies, is that it supposed to be to some degree a transparent ledger, you can track transactions, anybody can. so what do you guys do >> that's right. so cyber trace, what we do is provide a capability to effectively not at the individual level but to track funds all the way there crypto exchanges through banks and we find out who the bad guys are as well so we look at honemoney launderg services, criminal activity, ransom ransomware and we help companies to keep the bad guys out of the system >> do you do that by having a layer in there that is

essentially collecting that information and tracing everything all at once or do you gotained to try to sniff it out >> we do a little bit of the retain stuff but what we do is what you talked about, have a layer that rates across 800 different cryptocurrencies and virtual assets to track the very sm small percent that is the bad stuff, the good if yostuff, andt people to comply with the compliance and automate the whole thing. yeah, we'll help in an investigation every thounow and then, but it is primarily software and online services that the companies are using around the world >> a few weeks ago when the fbi was able to see some of that ransom paid by colonial pipeline, we made a big deal of it was that big deal, is that hard to do in terms of what they were able to accomplish there >> the tracing of the funds is

something that cyber trace does every day and on ur customers ue that encame abpability all the . i think the beauty is that they could see servers from the criminal operators and it sends a resounding message around the world that mhey, bad guy, watch out, we'll get you, we have tracing tools and abilities to make the infrastructure safe so i do think that it is important to bring that case up. >> do you have any estimates of exactly how much of the activity into and out of cryptocurrencies is illicit that has obviously beenen one the big criticisms >> and cyber trace as mentioned monitors about 800 cryptocurrencies across many different blockchains, we work with law enforcement, and our view is between 1% and 2% is identifiably criminal and 98% is

not. so there has been a lot of exaggeration by people who don't have the data that are basically making it up, whereas companies like cyber trace have real data gathered over six years across all these chains and we have real good visibilities of the criminal infrastructure. sure, there is crime, but it is not 50%, 20%, 10%. it is more than like around 1% to 2% just as it would be can cash or even credit cards. >> $100 bills, similar store >> $100 bills. >> thank you very much, appreciate it. before we head over to tech check, i want to take a look at shares of virgin galactic, they are up over 30% on the news that the fda said hey, yeah, we'll give you approval to fly customers into space, which they will soon begin doing. of course mr. bezos' blue origin

will also be doing that. he is heading into space pretty soon himself >> yeah, dreamers find this stock all the time this year they were supposed to be having cash flow and everything else based on the spac projections >> yeah, they will get in the air soon enough. and that will do it for us have a great weekend, everybody. tech check starts now. >> more white on the brush and many other here, let's have another cloud, right up in there. see? just as many or as few clouds as you want in your world ♪ good friday morning. welcome to tech check. today investors do have their head in th