good morning financials in focus. after getting the all clear from the feds, wall street's biggest banks are handing out cash to shareholders with one exception. facebook joining the trillion dollar market cap after the federal court dismissed anti-trust complaints. and cathie wood's bet on bitcoin. ark has come back. we will take a look at the

chart. it is tuesday, june 29th, 2021 "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin. it is tuesday. not only tuesday, but almost the end of the month and the quarter and the first half let's check out the u.s. equity futures. you see right now the dow is indicated up by 56 points. the dow was down 151 points yesterday. the s&p and nasdaq higher. s&p set a record close this morning, the dow indicated up by 58 points. s&p futures up fractionally. nasdaq indicated down 16 if you look at the quarter to date performance, the dow is up

4% for the quarter to date, s&p up 8% nasdaq is the winner up 9.5% for the month, it is up 5.5% that is the best monthly update. the treasury markets 10-year at 1.48% we should look at crude for the month of june. it was significant up 10% for the quarter to date, wti with a 10% gain. for the quarter is up 23%. you see it pulled back yesterday and today. right now, down 19 cents to $72.72 a barrel. andrew thank you, becky previews for the big banks after getting a clean bill of health from the fed goldman sachs and bank of america and morgan stanley is

raising payouts and committed to tens of billions of dollars of their own stock in buybacks. citigroup was the lone bank to not increase the dividend or buyback plan that stock has not moved or maybe moved lower is a better way to describe it joe, you have the story of the day, i think cathie wood. i see seven when i see 71. i still see seven on citigroup >> 10 for 1? >> yeah. cat cathie wood's ark filed with the s.e.c. to buy up proxy for coinbase and grayscale now she is seeking so own the

asset. if approved, the fund would trade under the symbol arkb and track the performance of bitcoin. ark noted the value of the bitcoin is speculative which could lead to increased volatility the s.e.c. postponed the decision to approve the first bitcoin etf. gary gensler is calling for greater potrotection. it was threatening to break under 100 for cathie wood's ark. now it made a rebound. i know a lot of people tying the overall market to a stabilization of the etf for her. >> every time one of the holders of hershers takes a tumble, she

doubles down did you think this was a big deal ricardo salinas. a potential bank in mexico a lot of data points at the same time, you have -- aren't there clouds gathering in regulatory ways for bitcoin and crypto >> you heard what happened in the uk >> yeah. >> yes, potentially. >> el salvador. >> i was surprised bitcoin wasn't down yesterday. >> when the bank says they will -- the billionaire. rica ricardo. he said his bank is the first to accept crypto. a lot of swirling things back above 35. that's notable >> don't you emerimagine you wil

see more people accepting? more banks will open their coins and token operations of some sort on the other side, you will see china and the others and potentially the u.s. government make other moves the question is what does it mean i don't know if it means it is -- the question is is this the floor? is 30,000 the floor and it steps up >> is $30,000 the floor? listen >> i'm asking. >> it was at 8 it went to 20 and back down to 3. cramer has been talking about it i'd buy at 10 or 12. the question is is it possible given maybe it has become more mainstream and more accepted maybe it doesn't have 80% pullbacks anymor more in a sing year maybe it is above stall speed.

if if it stays above 30, that is significant. on the way up, people were needling me. mel melissa. it was at 28 santolli what about 28? 28 i don't know if i like it at 28. i don't know if i would buy it. now we're back down to 35. is that really cheap is that a fair price for bitcoin? do we accept cryptocurrency is worth over $30,000, sorkin >> i'm not willing to accept anything i don't think any of us know what it is actually worth. the other thing, as you know, once you got to 30, it is harder to get to 60 or 90 or 1 million if that is what you are thinking. >> i'm worried about 8 if it stays above 30, is it worth it >> it depends on your basis, joe, of course a lot of people, unfortunately,

whose true basis was 60. that's the thing. >> 50, 40. >> there was a point where it was going to be lower for the year it turned around and recovered from that. >> yeah. it held 30 it was recently it looked like it would break under 28. the weekend before >> the last several weeks. since we've been here. >> is 30 -- remember what novagraf said? 20 is the next cramer has it at 10 or 11. all of this will piss somebody off. i'm not going to use that word i know we will get it. it is too late the people that really love that we said something already. i know probably -- >> @joesquawk. >> it's @squawkjoe >> what are you, sorkin? people send in stuff to me and

they forget your "r. am i allowed to say if you are really interested in reaching him it is andrew "r" sorkin? >> at me or don't at me. at me. @andrewrsorkin shares of facebook jumped 4% yesterday bringing the market cap above $1 trillion for the first time this came after the federal court dismissed the anti-trust complaint against the network. it dismissed a parallel case against 40 tone attorneys generl the company engaged threats to the mondopoly. the court ruled that the ftc failed to maintain position. the company holds monopoly power over the states. the company failed to provide an

estimate for the market share over the last ten years saying it is almost as if the agency expects the court to nod to the conventional wisdom that facebook is a monopoly it leaves the door open to shore up the weakness and file an amended complaint which has to be done in the next 30 days. andrew, this strikes a blow to try to rein facebook in. >> it does i have to tell you the ruling is a fabulously written ruling. i thought the rational with which the judge explained it throws out the state's case. that state's case is essentially not coming back. the s.e.c. case will be refiled. he lays out what the ftc would need to do when they replead this case if they do which you have to imagine they will. it is true

we all -- i think a lot of people, unfortunately, simply says size, if you are big, you are a monopoly we regurgitate what they say the law is clear and different than what people think by the way, there are lots of people who think the law should change interestingly, this is interesting. this test case either you think facebook is a monopoly or the law should change it is hard to believe it is both at the same time this is an interesting test case as to how this all plays out if you are into this reading, it is absolutely worth it the judge makes very, very interesting and not bold or wild or radical views, but explains the law in a way that i don't

think we often do enough some news just out involving jpmorgan chase the bank agreed to buy open invest it was founded by former employees of bridgewater associates it is a platform developed by openinvest it is helping esg clients. another example of esg movement and people spending money on coming up, united airlines flying a new flight plan we have phil lebeau with more. don't miss it. check out the price of crude pulling back after climbing above $70 yesterday. we are awaiting the big opec meeting on thursday.

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united launching a new flight plan this morning with its largest new aircraft order in the company's history this is significant, phil. i want to talk to you after we hear about it. phil lebeau with more. good to see you at the nasdaq today, phil. >> good to be in the big city, joe. a massive order.

largest in united's history. here is how it breaks down united ordering 270 narrow body planes 200 is the 737 max most will be the largest, max 10 70 airbus a321 neo they will replace 200 regional jets with the larger mainline jets what you have is a imagination or major upgrade in the fleet some people, the cabins have been in need of an upgrade adding more premium seats and more seatback entertainment on every seat larger bins. across the board, a big retrofit for the cabin experience all of this is happening because they need it this is an airline with the oldest fleet look at united

no comparison against the other u.s. carriers in terms of how old the fleet is at times, it feels like an old fleet. they are out to change that between now and 2026 they will receive one new airplane every three days in 2023 take a look at shares of you nig united they are expecting to create jobs ticket agents and interfacing with the customers and pilots and maintenance. 25,000 jobs through 2025 shares of united not doing a lot on the news today. this is, by the way, expected for some time. take a look at shares of boeing, which is a big move for boeing to say, okay we have 200 of the max which is part of the new commitment all new commitment these are not options united is ordering from boeing look at shares of airbus

7 70 a320 neo. you don't want to miss our cnbc interview in the next hour with scott kirby of united. guys, i'm bringing him here to you in new york city so you can talk to him about the big announcement from united big commitment by kirby and his team to say enough we want to be as competitive when it comes to the customer experience as the other airlines we are stepping up in terms of what we're flying and the experience when you are on board. >> we're excited he is here at the nasdaq i want to talk to him about a couple of things things i heard lately from the ticket agents about my miles and stuff. we will see. phil, i like when you said these really small planes and seats. for some people. they have a problem with those you have a friend, is that what you're saying? >> no, i have myself let's be blunt i hhave taken more than a few

regional jets between new york and chicago. when you are crammed into the regional jet, you come away going, eh. is this what i paid for? >> cry baby. >> a lot of people will look at this by united and say bravo about time you did this in terms of stepping up the customer experience they will make major changes between now and the airplanes delivered in 2026. the cabin will stand out >> i know which ones you are talking about. i like those and the one seat on one side and getting on and off which is easy. they are small >> turbulence. i like -- >> sorry >> i was going to say i like the idea they are putting entertainment back i thought that was going away. the idea everybody is supposed to bring your tablet or the wifi doesn't always work. >> there was an initiative years ago where you can download the

app. a lot of people do download the app. a lot of people on other airlines and i notice this with other carriers they like having live entertainment in the seat back you get that on some united flights. a lot of flights, download the app. >> phil, did we ever think we are never going back to leisure travel it is the growth industry of the future everybody likes to go places whether it is europe or elsewhere. we knew that is this an endorsement or a bet on business travel returning >> yes 100% in fact, yesterday, in the briefing with reporters, one of the things scott kirby talked about is they believe business travel is coming back full gone is the discussion of maybe a little bit a lot of people don't want to come back on the road. they see a steady increase is it going to be all the way back by the end of the year? no they see a steady move higher. they also are very optimistic

about trans atlantic travel. they believe next summer, not this summer, but next summer, will be a record all-time record for trans atlantic travel. so they believe that we are headed back to big days in terms of people flying especially here in the u.s. for business as well as around the world. >> it will be a big change pittsburgh, cincinnati any of the places are always smaller jets this is a big deal to get rid of all those regional i like them. the other ones i referenced bombardier >> nobody is saying you shouldn't fly regional jets. there will always be regional jets that will be needed charleston, south carolina, it is hard to see the volume so you only fly larger jets you can take some larger jets. there will be carriers who say we have enough volume for regional

perfect. nobody is arguing about that when you go from new york to chicago on a regional, you come away more than once -- i would hear from other executives who say this is for the birds. it is that kind of thing that united wants to upgrade. >> i heard people you know that have problems. i heard you say that phil, thank you. you have a friend who has a problem with thinning seats. >> me. roar i have that problem. >> thank you, phil lebeau. >> you bet andrew >> let's talk more about united airlines the managing partner and cnbc contributor. you want to weigh in on united and ark investments? a lot going on >> we like the stock the stocky like is delta delta has the best management out there. really what you are waiting for here is leisure travel

high margin business is the international travel delta airlines, we feel, has much better fleet and better routes united is dependent on asia. asia will take 12 to 18 months to come back if you play this value play here, that is delta with a better management team >> any other airlines you like or is delta it where is united in the stack for you? >> united is second. we own both of them in the past. we trimmed back united we like air space. they are a small midcap company. this is a space that the stocks are reflected to come back it really is the next leg up we think management is the difference here. you really have a monopoly on the airlines >> you just used the "m" word. a nice segue to talk about

facebook a judge says no. these folks are not a monopoly the investor class said great. it's a $1 trillion company what did you think of the judge's decision and what happens next >> interestingly enough, the judge's decision, i think puts more attention on companies like facebook we like it we added to it this year the sum of the parts is greater as a whole the power of digital advertising is a return on investment for facebook than all its peers. that will grow 10% to 15%. facebook with the network effect and you look at not the core of facebook, but instagram which is growing and whatsapp is growing more if you look at the market and the valuation, it is cheap compared to the market i know that is hard to say with the big tech stock, but the

faang -- >> sarat, the idea of the overhang of the judge or washington, will decide to break up this company. the question that i would ask is do you believe yesterday was so significant to a degree where you think that is now off the table? >> i don't think it is off the table. i think the ftc will come back if they do, andrew, the sum of the parts is greater than the whole. the downside is limited. >> finally, cathie wood and ark invest the great comeback, not yet. i'm curious about what you make of the etf itself and her new etf and ambition was the bitcoin etf. will that get off the ground is she the first to do it? >> i don't know if she is the first to do it a lot of companies are trying to do it. i think there is plenty of other growth

cathie has great investments there. we with llike some of them. there are some great companies in there one thing i would caution is make sure they are part of the diversified portfolio. if you put all your money in the stocks, you will be in for an up and down ride. it is also important to be diversified. you mentioned the airlines and financials before. these are all part of the diversified portfolio. there is a space for growth both at reasonable prices and hyper growth stocks that could become the next facebook. just be diversified and not put all your eggs in one basket. the bitcoin saga is still going to be seen there are a lot of players here. we don't know where the regulators fall on that side. >> before we let you go, where do you fall on it? joe and becky and i were talking about it now a bank in mexico wants to

accept bitcoin do you own bitcoin >> we do not own bitcoin i'm on the side and watching to see how it becomes investable. how you can protect the investor i think there is traction there. block chain is the technology behind it and how companies use block chain. there are companies that are using it as a small piece. it is like artificial intelligence these are all important things that will be huge going forward for the next five or ten years we will look for the opportunity to see what are the best companies taking advantage of it watching and learning as we all are and just too early for us to put our capital towards and we will get an opportunity with the companies that take advantage. >> sarat, great to see you >> thank you thanks, andrew when we come back, it is vacation season. we will talk about how to make the most of the travel rewards

with the points guy. that is coming up at 6:50. we have ipo news as we head to a break duolingo filed to go public. the company behind the language learning app said the revenue more than doubled in the first quarter compared to a year ago the top grossing app in google play and apple app stores. we'll be right back. >> announcer: today's big number $13.5 trillion that's how much wealth u.s. households gained in 2020. according to data from the federal reserve. nto e p oone-third of the gains we tthto1%f households things will pick up b. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers

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tonight at 8:00 p.m. here on cnbc, catch buffett & munger hear from the oracle of omaha as they share stories of the friendship the deals they have done over the years and what they say makes the company different. like anyone else, they had to adapt during the pandemic. >> bill, last year, you had your lives changed dramatically from the pandemic charlie, i hear you're adept at zoom >> i fell in love with zoom. >> how many times do you talk on zoom >> every day it adds so much convenience. >> particularly at 97. he is getting around charlie and i talked a lot, obviously, since the pandemic started. we haven't on zoom yet i'm not a zoom guy. >> why don't you like zoom

>> i didn't take to it i did it once or twice and the whole screen of people i didn't think it was adding -- i find the telephone satisfactory instrument. >> we talk about a lot of things tonight. you can hear about their thoughts on robinhood and bitcoin and credit suisse and the china's system you can join us at 8:00 p.m. eastern time. >> i'm kind of with warren on that >> zoom? >> the few times with the squawk on fridays what am i wearing? >> too much pressure. >> what am i putting in the background you know, it is easier you have the anonymity of the phone where you don't have to dress up. >> i used to think that. there have been meetings where i get more out of looking at somebody >> expressions >> not big group zooms i don't think those make a huge

change if i'm talking to somebody one on one, i have conversations where i feel i'm talking to them in person and -- on the phone, you miss more context on the phone. it adds more context you miss context in emails or texts that you pick up on the phone. with zoom or teams or any of the face-to-face video conferencing. i feel i get additional context. >> you facetime? sorkin >> i facetime all the time. >> it is a mistake >> butt dial >> i've never done it. >> especially with the kids. >> i do family zooms we got our family together during the pandemic during the holidays we had much bigger family y reunions on zoom >> they were better than nothing. nobody actually sticks around. a lot missing with the family.

very happy to get back to family groups. >> that's true >> i miss that >> it's that cnn guy you can't talk about this. you are deemed inclined to make a joke. another black eye for softbank as one of the portfolio darlings slashes targets for the american ipo as we head to break, we can't get through -- thank you for that you know what? thedenomenator he is the onlynehoot o w g caught yeah, right. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get

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good morning let's check the futures. it makes it difficult. all of these things should move the same on any given day. the dow is up and the other two are down the other day, the two other were up and the down was down. it makes it difficult to explain and -- what are we going to do you see the nasdaq is down 16. s&p -- what's that >> boeing was down yesterday and up today >> it has a lot to do when there are 30 stocks that dictate something. what was it the other day? nike was up. dow was surging 100 points

the other 29 unchanged chinese grocery app dingdong slashing the size of the ipo in the u.s. the company is now looking to raise $94 million. down dramatically from the earlier plan for up to $357 million. the move comes after rival miss fresh backed by tencent plunged in its market debut last week. andrew. coming up when we return, we dig into juul's $40 million payout to settle one of many lawsuits the ones hot start-up's plunging valuation. don't miss the cnbc interview with scott kirby in the next hour. you can watch or listen to us live any time. you can do it now on the cnbc app. "squawk" returns after this.

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welcome back to "squawk. juul labs settles a lawsuit that an alleged the e-cigarette maker targeted underaged children and teenagers and misrepresented

potency of the nicotine. the $40 million funds will go to avoid vaping in teens. juul halted most of the u.s. advertising releasing the overseas expansion and stopped selling sweet and fruity flavors. valuation plunging from $38 billion to $4 billion right now. the fda is evaluating if juul products can remain on the u.s. market i don't know is the debate closed yet on vaping, guys >> we were talking about that, andrew when you said juul at the beginning. >> we thought jewel the singer we haven't talked about it in so long >> i remember there is a tv guy on break doing it. what are you doing you know, you need a nicotine

delivery system if what is wrong with you who does it? don't do it. you won't need it, right if you don't -- >> as you drink your coffee. >> right. >> a group of people said it was healthier than smoking >> getting new people addicted to nicotine. >> they were creating new users. not somebody using it to quit smoking. >> you are right i should not -- i see people doing it and i think less of them all this and you can't see their face and fog >> it is preferable to tobacco smoking. it is the way they did it instead of trying to look at the market of people to cure from tobacco smoking. they were looking at a bigger market and create new users. >> people want to do it. personal freedom whatever they want to do

i'm fine i'm good >> joe's not judgmental. >> i'm trying. i'm trying >> i'm impressed >> i'm trying. it is a contraption. what do you do it is metal. >> i don't know. you are right. we all have our vices. >> sorkin, is it a metal contr contraption? >> i have seen ones with a usb connecter and they plug it in. >> is that how you charge it >> honestly, i don't know when it comes to vaping i don't know anything. >> it is good if you are using it to quit tobacco >> you don't need to install a new addiction from scratch let me get my starbucks here. coming up, after spendin last year in lockdown and online, what should you do with all of the travel points you banked the points guy brian kelly is joining us next on your best options.

check out shares of general electric top idea at goldman with the $16 price target analysts call it the ultimate self-help leverage story in the industrial sector. we're coming right back. >> announcer: tonight forget to subscribe to our podcast you get interviews, original content, and behind the scenes access look for us on apple podcasts or on your favorite podcast app subscribe to squawk pod today. >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. we . okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, asap!

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as the country continues to reopen and travel begins to return to normal, many are wondering what they should do with their saved-up travel points joining us now, the expert on

all things travel points, brian kelly, ceo and founder of the points guy brian, encapsulate where we are now in just the last year and a half in terms of -- it's feast or famine, right i guess now it's good to have all this stuff there was a time where we were basically all dressed up with nowhere to go. >> 15 months ago, i was home for 100 days straight. business travelers were in the same situation things have changed dramatically travel is back to 80% of trained tsa passengers we're clocking over 2.1 million per day. that number keeps rising so what that means is that air fares -- a year ago, you could fly new york to l.a. for 50 bucks. air fares have shot up people are jam packed into airports and bottom line, people should be using their frequent

flyer miles in points because they don't get more valuable over time. >> they get less valuable, don't they not now. they're probably back to where they were, but for a while, were they less valuable they never get more valuable, but for a while, were they less valuable >> they were but when you can buy a ticket for 40 bucks, when would you ever want to redeem your miles air fares have started to shoot up the value is there in frequent flyer miles. i'm taking my family to germany ain august and booked eight business class tickets the best part about using your points and miles, you can cancel free of charge and get all your miles and taxes and fees back. using your points gives you that extra level of flexibility the delta variant is really concerning and they could shut down again to americans. instead of getting a boatload of airline vouchers i would much rather get my miles back and rebook to somewhere where i know

i will be able to get in. >> are there discounts now that you could buy discounted points now? they haven't come back all the way or not >> oh, yeah. the loyalty programs, that's how they survived the pandemic almost every airline has collateralized and sold their miles to credit card partners. they usually offer deals the best deals are signing up for credit cards the market is booming. we now have several hundred thousand plus offers on the market for a single credit card. to the consumer that's over $1,000 in value just for signing up for a credit card that's the easiest way to rack up your points the biggest thing is use them. people who just keep accruing them and accruing them but the time now is to use them. >> because there could be devaluations >> exactly. >> if you save them and don't

use them there's a possibility they'll be worth less? >> exactly southwest, they devalued their points by 6% overnight, no notice sometimes the programs will give you a notice saying hey, we'll raise our prices now most of the time that doesn't happen use them now get value out of them. don't liquidate them for gift cards. you'll get terrible value. >> if you like hilton, you should move now on some of this, right? hilton honors, that's a deal. >> it is it's a great program. >> nickel and half a cent for points that ends, though. oh, my god, that ends next week. >> big bonus, today, i think, is the last day on the hotel front, hotel prices are through the roof resorts are still charging resort fees which are bogus since a lot of hotels can't

provide the service due to labor shortage i always recommend dispute those fees a lot of times even in the hotel app, you can say i shouldn't pay this resort fee because i didn't get any of the perks. >> if you do have them, what's the priority -- or the list of how you should use them? what's the best thing to use and what's the worst thing to -- where do you get the least for your money >> a lot of business travelers are still staying home airlines are allowing customers to upgrade using points at check-in so splurnl you deserve a first-class seat. >> you can still get cheap fares to europe, too, can't you? i bet delta isn't happy about this variant like corona, the beer, wasn't happy i feel bad.

>> about half of where they used to be, especially business class, $2500 round trip from the u.s. f fares are going back up. it's cheaper to fly to europe now than it is to hawaii super definitely the hot spot if you're willing to take the risk that things could change. >> hot spot literally. >> i didn't mean to trash dealt but united is my airline k newark is so close. >> guess who is here, sneaking up behind you. >> did i say that all about united with you standing back there? i can't believe that. >> brian, thank you. and good to see you, scott looking forward to the interview. >> and i like. >> yeah? >> good branding. >> it is good branding. >> face mask scott kirby is here.

we'll talk to him in a moment. lot to go over with him. when we come back, speaking of airline points, we have this forementioned big interview on the other side of this break united ceo scott kirby is here in the house talking about his company's massive new aircraft order we'll talk about business travel, leisure travel, how things are going we'll talk about employment and much more. take a look at the futures right now. you'll see right now dow futures are indicated up about 61 points s&p up by another 1.5 approximate pointpoints after setting a record yesterday. nasdaq down you about five

♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. keeping your oysters business growing has you swamped. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at indeed.com/promo girls... the chess club has gained an edge on our bake sales. we need more ways of connecting with customers, fast. i know some consultants with great ideas.

can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”!

the strategies and stocks to watch. watch and listen live on the cnbc app. s&p on track for its best month since september. we head towards jobs friday. that's right that's this friday scott kirby joins us on a first cnbc interview laying out a plan to protect small business owners. kevin brady will join us to talk about that bill, the nation's trade talks and taxes.

the second hour of "squawk box" starts right now. >> good morning and welcome back to "squawk box" here on cnbc i'm andrew sorkin along with becky quick. the dow looks like it could open up 73 -- call it 70 points, it's come down while i've been speaking s&p 500 up about two points. what's making headline this is hour most of the nation's biggest banks are doubling those payouts while jp morgan chase announced increases. the lone exception was citi,

which left it unchange buddy left the door open for possible future increases facebook is worth $1 trillion. its stock saw a spike yesterday after a judge dismissed anti-trust complaints trying to force facebook to sell whatsapp and instagram apps he ruled the u.s. states waited too long to challenge the acquisitions of instagram and whatsapp the fcc can, though, refile that case in the next 30 days we are expecting them to do so revenue more than doubled in the first quarter. duolingo is the top gross ing. beck >> cathie wood has been buying

up proxies for the digital occu currency, bitcoin trust. now she's seeking to own the actual asset itself. if approved, the fund would trade around arkb and track the performance of bitcoin a significant amount of the value of bitcoin is speculative, which could lead to increased volatility yeah, we know that, too. more regulation of crypto exchanges and greater protections. >> jp morgan chase buying thin tech startup the platform developed by openinvest so-called esg investments for clients. andrew, we've talked about this in the past and had a little

meeting of the minds on this, too. do we just -- is it just a fact that you're going to do better, better performance it's not with these, is it >> no. >> you just get the virtue signal with these thing. do they do worse or about even with other investments >> look, i don't think we know yet. i think in this -- >> what do you mean? >> look, we don't know if you look at some of the energy companies, they have obviously not done so well over the past couple of years. >> right. >> maybe this is an indicator. i don't think we're going to know for another ten years i honestly don't. >> there has been a lot of speculation and, i guess you look at the ev plays and the renewable plays. those have done well so, in that regard, you would figure some of these esgs. but then i wonder if some of the other ones you avoid, if they do well and you're not in them because of esg

i don't know it would be nice to no maybe people don't care. if you get 2%, if you get your money back plus 2%, that's fine. there are things you can do where you're not just trying to maximize -- >> the only part of this i don't know -- we talk about it from the investment class side of it. maybe the world has moved to a place where employees really won't work at certain types of companies and customers won't buy from certain type of companies. there is an ecosystem piece of this that may ultimately get tied up. >> the backlash, you get it on both sides maybe that's why it's not a great idea to have cultural issues. >> a lot of these things are things that happen in strong markets and things that happen in strong employment markets right now, employees can choose to work where they want to work because that's an employees' market

same thing with working from home and all these other things. those are things you can do, expect and anticipate when you are an employees' market if that turns and it's an employer's market, that's a different story. >> ride share giant didi, ipo expected to raise $4 billion trading will begin then tomorrow the offering will value the company at more than $60 billion. didi is more than just a ride-sharing company eunice yoon has more now from beijing. hey, eunice. >> hey, joe. can you use the app to call a private car or taxi but in china you can do a whole lot more. didi driver has picked up his latest passenger not a commuteer r but a cabinet

people are more trouble than things, he says. moving furniture is one special service offered by didi shing. here you can book a spot on the shuttle bus or the entire bus, car pool or hop on to a didi rental bike. another feature that could come in handy is if you had a big night out and might not want to drive, but you have your car didi allows you to hire a driver to get you hope. the app tells the designated didi driver where you are, then you're off in your own car people who own an ev, the app can locate the closest charging station on the ever-expanding network. for those who want a didi ev ride, the d1, custom made for car sharing with warren buf buffett-backed ride maker.

it's exploring entirely new areas like fintech, community buying, helping residents buy in bulk for discounts as didi looks for ways to deliver profits. and like uber, didi still has trouble making money here that is despite, joe, have 90% of china's ride-sharing market. >> that's interesting, un ice. why? why so much trouble? with 90%. >> reporter: the subsidies. >> yeah? >> reporter: yeah. well, it's a very competitive market in a lot of different areas. over years they've been shellin out a lot of subsidies in new areas, such as the logistics, the freight feature i was showing earlier -- >> right. >> reporter: they've still been handing out a lot of different subsidies to get people to use the service. because of that, for example, just on that one transaction,

they were lose ing about 14%, handing out subsidy to the customer and then handing out the subsidy to the driver. >> all right thanks for that report, eunice good to see you. talking about business we don't have to worry about -- it's hard nowadays whenever we talk to you. so many other things going on, obviously. thanks coming up, we'll talk about united's future flight plan. phil lebeau joins us with what's to come. hi, phil. >> hi, becky 27 0 new planes, and that's not all. upgrading the interior of every narrow-body plane in the fleet it's a new flight plan we'll be talking with the man in charge of it, scott kirby, ceo of united airlines he is on the shlect of "squawk box. that's coming up next.

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phil lebeau joins us now with a very special guest. phil >> scott kirby, ceo of united airlines joining us here to discuss with an is a huge day. let's talk about the numbers overall. 200 of them being 377 maxes, the

other 70s being airbus neos. and you'll be replacing most of your jets with larger jets. >> yeah. >> what's the thought prs behind this decision? >> first of all, great being in-person again. >> absolutely. >> and seeing everybody again. we're trying to upgrade the customer experience. some of the toughest customer experience and at unit ed we really needed to get that to be a world-class, first-class product. we have the best international product of any airline in the country today. upgra upgrading our domestic experience for customers is what this is about. while it's a big aircraft order it's really about upgrading the customer experience with new airplanes but also brand new interiors, seatback entertainment and all the amenities on the airplane. >> when you were at american airlines before you came over to united did you realize as you were coming over to united this

is a bit of a sleeping giant they've got a great network but they also have the oldest fleet and they frankly have interiors, and experience that is not living up to the competition. >> when i first went to united, i always knew there was a ton of potential. everyone in aviation thinks of united as an airline with lots of potential this has been a big part of it they create the product that customers want giving customers the product they want. our hubs are in the best places in the country but we needed to create the product that customers will choose the airline. >> you're going to be taking, w what, one new plane on average every lee days in 2023 >> by the time we get to 2023, one new airplane every three days i don't know an airline in history that's come close to that as we come out of covid and have confidence in the future, being able to rapidly change the

airline for customers. >> you're not playing list price for these aircraft people always say that, how much are they spending? and list price would be somewhere around 33, $35 billion. clearly you're not paying that much critics will look at this and say this is an airline that has heavy debt there's a lot of questions about how you're going to pay that back in addition to whether or not business is going to come back both in terms of corporate as well as international what do you say to those critices >> on the second point we believed in april of last year we were unique the only ones that believed that business travel international would ultimately come back every data point as we come through the cries would make that go strorpg and stronger today. today it's an under statement to say that business travel is going to come back business travel is going to come back it's going to be a little different. some of it will be people commuting instead of driving to work we've seen a huge acceleration even in the last few weeks.

>> before i toss it to joe, when you say business travel is coming back, where are we at right now and when do you think we're at more than -- or back to 2019 levels? >> we're down about 60% now. literally ten weeks ago, we were d down all the anecdotes is once we get to september they're going to be back on the road particularly for client-facing business i don't think business travel comes back 100% probably until 2023 but a big function increase in september, another one in january where people have budgets again. but we absolutely think it's going to come back 100%. >> joe, go ahead. >> planes are important be, obviously. i think airlines and how daunting what you do actually is and that makes your people so important across the board from ticketing agents to pilots to flight attendants. maintenance, everything. and i still -- because i'm old i still think of continental and

united i think of the separation, the culture, trying to put those two airlines together and some of the issues that -- and i guess it's been years now. we've been through the pandemic. where does that stand? labor issues the culture clash between united and continental. is it one airline? everybody is happy everybody is united so to speak? >> i think we are all united i don't hear that at all of course, i wasn't here at the time of the merger we are united as a single airline. and i think we were getting there before under oscar's leadership as we went into the pandemic particularly coming out of the pandemic the amount of pride that united airlines for the role we played in the global humanitarian response, carrying over a billion tons of equipment around the world. humanitarian response and in india most recently, that pride has created a sense at united airlines that it's our destiny to be the leading airline in the world. and even the rumors of it, when

i flew in yesterday, employees were incredibly excited, trying to get me to spill the beans on what it would actually be. our people feel good and that's in our best. >> seat back entertainment. >> yeah. >> somebody brought up on call, it used to be if you mentioned it to an executive at united three, four years ago, they say, no, no, no, no, no you download the app and it's good enough. you realize the value of seatback entertainment. >> it's one of the most important things we can see it in our data. all the customer service scores get massively better just from having seatback entertainment. people like the food bar they don't care as much about the flight delays. everything is better with seatback entertainment you see 60 plus percent of people using it. my son was bouncing up and down to tell me when he got off the plane how he played battleship and won two games and lost only one on the flight. it's such an improvement in the experience for customers. >> let's talk about

international travel it sounds like you believe -- and i know on the call yesterday you said you think next year say record year for transatlantic travel what about asia? >> so we think asia will take a little longer to recover combination of they've had a much closer to zero tolerance on covid. they're just in a different place than we are here in the u.s. or in europe. and so we don't think asia is coming back probably for 18 months good news is that all the airplanes we're flying to asia, a lot of new service to india, africa that service has done well africa, india, other places and wait for asia to ghetto back to full probably 18 months from now. >> joe >> thanks. we talked a lot about airlines a lot. andrew pointed out, scott, about just how to make sure that airlines keep enough in reserve for things that really only

affect the airline industry. i think of 9/11. i think about -- we can't guarantee that that's not going to be another pandemic so, how do you ever keep a rainy day fund so that, you know, you're not going to need any assistance again in the -- is it ever possible that an airline can be totally impervious to future government assistance given the nature of your business is it ever possible for expansion to be more like a utility? i don't understand how you do that, how you can ensure that won't happen again with such a -- you know, it is perilous, what you do. >> yeah. we are -- we are more subject than most to what we call black swans. although i hate the term black swan, because that happen once a decade they're just different events. historically, we thought if we could survive something that was twice as bad as 9/11, which by far was the worst thing that

ever happened to aviation, then we would be okay of course, covid threw us, it was magnitude even worse than 9/11 the fact we made it through, thanks to the bipartisan support in congress and the administration to help not just aviation, but the whole economy. the fact that the whole u.s. economy made it through strongs it das strong as it did in this event is a testament to what they did in washington while i hope we'll never have another event like this, you obviously can't guarantee it, but we can position ourselves better in the future to have a stronger balance sheet so we can get through the crisis we're going to have more cash on the balance sheet. we're going to pay down debt the amazing thing about this plan we're announcing today, while we're buying 30 something billion at list price, by 2026, we expect to have our ratio below 2.5. it was 3.2 coming into covid

it's going to take time. it's not going to happen immediately. we're well positioned for the future and it really is good that the response -- to see the whole economy, not just aviation, but the whole economy responding like it is, coming out of covid. >> i want to talk to you about staffing levels. we know the problems that americans have had recently where they didn't have staffing. there were storms that came up, too. philadelphia chapter of the american pilots' association has said what they've seen, initial forward-looking data has suggested that they've published and sold the schedule through december this year, that they probably don't have proper staffing to execute. is that a problem united is facing what are you doing in terms of hiring and staffing? >> united is unique. all of our large competitors have, at one point or another in the last few months have had staffing issues. because we thought this would be a long cries in april of last year, we worked with our pilot team to keep all of our pilots

in place, trained and current on their quumt. the result of that, we're unique in not having these staffing issues it is really a testament to the partnership we have with our labor unions and pilots in particular that allowed us to negotiate that deal so we could be confident that we could get through the cries but then be prepared to bounce back at 100%. >> part of this plan is you expect to add 25,000 jobs by 2025 you're at 68,000 and expect to be up to, what, 90,000, 93,000 >> yes. >> front facing, whether it's gate agents, ticket agents, et cetera >> these are not really jobs these are careers. we are creating 25,000 union front line workers the kinds of jobs where without a college education, pilots, flight attendants, mechanics that can make $100,000 to $150,000 there are not many of those left in the u.s. economy. >> what do you expect for air

fares three months from now? >> domestically, air fares are going to stay under pressure business demand isn't back yet they're going up but there's a great price across the board prices across the atlantic will return to more normal levels quicker than the rest of the country but still a great time to travel and great bargains out there. >> scott kirby, ceo of united airlines huge day largest order ever in the history of the company 270 new airplanes. the more interesting thing, guys, is the complete renovation of the interior of these aircraft that's making a statement about improving customer service back to you. >> all right, phil as you said earlier, some people, you know, those seats are small for some people. >> some people. >> thanks, phil. and thanks, scott kirby. coming up, bipartisan bill aimed at protecting workers and small business openers kevin brady will join us in a

moment to talk trade, infrastructure and jobs. "squawk box," coming right back. digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work.

still to come on "squawk

box" we'll huddle up to talk about media streaming strategy and winners and losers. >> plus facebook entering the $1 billion club plus kevin brady is joining us to talk trade, tacks and much more stay tuned you're watching "squawk" on cnbc n go to meetings. visit a job site. and even finish work early. you look really lovely. frank? frank...i trusted you! but if cloning isn't right for you, just get posh. virtual receptionists who can answer and transfer your calls, because you can't be in two places at once. labradoodles, cronuts, skorts. (it's a skirt... and shorts) the world is going hybrid. so, why not your cloud? a hybrid cloud with ibm helps bring all your clouds together. that means you can access all your data, modernize without rebuilding, and help keep things

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>> welcome back to "squawk." facebook shares pushing the market cap into the four comma club we want to dig into the facebook news you read through the court's decision do you think the ftc refiles, rich and what happens next? >> look, you've seen governments all around the world, regulatory bodies all around the world trying to figure out what to do with these massive tech giants that really are just continuing to grow at an unprecedented rate i think the fear is just these companies are getting too big, that being said, it's hard see from a consumer standpoint, consumers love using these

platforms and keep spending more and more time on these platforms. to be fair, andrew, even if you broke them up, what is it achieving? a lot of these things with separate entities would be massive companies with massive power. not really sure how you do it. and i'm not sure it actually is in consumer's best interests if they're broken up, given the value and how they actual ly mak consumers' lives easier and better. >> you think the judge will effectively be in your camp, not just the judge that made this ruling yesterday but long term as this sorts its way through the court, there will not be a breakup in the end? >> actually, i think that's the key word as it worksity way through do you remember how long it took the microsoft case this is probably not going to be decided under at least the first biden administration i can't predict whether there

will be a second this is probably going to take years upon years, if not a decade, as every -- different bodies take different views. who knows what regulatory. that leaves aside the fact that think about europe they may make regulations. we have no idea how this sort of plays out. you see a lot of attacks on all these big tech companies facebook is not alone. i think everyone is trying to figure out how do you actually do this without actually screwing up how these companies actually operate on a day-to-day basis. they're so integrated. it's just not so easy to say hey, split them up make them smaller. >> rich, i want to pivot, if we could, to the news about the nfl, which has hired goldman sachs to help advise it as it seeks new revenue sources. if you were advising the nfl at this point in terms of what those revenue sources would look like, then what it would mean to

advise the media companies on the other end, which may be be the winners or losers as a function of this, what would you do >> great question, andrew. this is really -- you think about who has the best content in the world, who is the most powerful it's the nfl this is the top of the world content, top of the food chain it's actually what has suffered the least ratings decline of any of the sports leagues and remains the most iconic content. it really comes down to what company -- i wouldn't even say media company. what company wants to partner with the world's most important content? and i think that's where it gets interesting. obviously you just mentioned facebook, right, with its trillion dollar market cap adding another zero. we've got four other trillion dollar plus companies whether it be apple, amazon, google or microsoft. you have five heavy weights that could theoretically have a lot of interest. you saw the nfl take thursday night football and so amazon is

clearly -- jeff bezos is clearly saying the nfl is an asset for the long-term success of amazon. then you've got all these sports betting companies like bet mgm, fan duel that are looking at sports betting over the course of next 10, 15 years as legalization comes out what better than red zone? assets perfectly made for sports betting. so, i don't think that the group of companies is going to be confined to, you know, your parent company, comcast, or viacom, disney espn. i think the internet will cast a very wide net and what's interesting is do we see nontraditional players come out who wouldn't normally want media rights but are looking at something larger >> two questions one, there's always been a view, at least inside the nfl, up

until now, that they wanted to always be on a big network eyeballs mattered. eye ball reach mattered because of the sponsorships, ticket, whole ecosystem. do you think we are at an inflection point now -- not to say that eyeballs don't matter but now there's enough eye balls on these other streaming services that that could effectively replace the quote, unquote, network >> no, i don't think so. i think the nfl raem views reach as really important. think about what's happening to other sports regional sports networks are dying. they can't figure out their future they're losing distribution, distributors are dropping them left and right, and the businesses sinclair we don't even know if diamond sports survives and can stay out of bankruptcy. there's a lot of good rationale, thoughtful rationale even if you think about the nfl they still chose amazon just for thursday night football. they at any time move any of the

sunday or monday games over to digital only the answer to your question, though, is the assets that are being not sold but looking for strategic investment, these are not the widest reach assets. >> right. >> red zone does not have massive viewership and so i think digital players could make sense. >> we have to jump the other question, real quick, dtc, direct to consumer, do you think that's ultimately long term a better model for the nfl or are all these other outside networks licensing this stuff willing to effectively overpay for it because it comes a loss leader for other parts of their business >> it's spoken for these deals go into the next decade in terms of major media rights it's a relatively -- it's very important strategic chess piece. this is not live games this is red zone, nfl network, digital properties those assets could very much be

part of some form of direct to consumer offering whether it's tied to sports betting, espn plus or peacock. i think there's a lot of opportunities to do things with those assets i wouldn't confuse that with the mass reach long-term media deals that nbc and others just signed. >> rich, always good to see you and get your perspective on all of it. thanks. >> thanks, ap drew have a great week. >> you, too. >> congressman kevin brady on trade, tacks and much more he will join us in a few minutes. and let's watch the arc autonomous ticker arkq buying 62,000 shares of the autonomous drone maker. third largest olding in the arkx, fourth largest in the arkq etf. all told ark owns over 8 million

shares of ktos we're coming right back.

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new bipartisan trade bill being introduced by the house, ways and means committee, detailing a new trade program aimed at protecting workers and small business owners. joining us to discuss more is congressman kevin brady. good to see you. is this new? is it really more a reauthorization of two previous programs that have been, i guess, sort of stuck in the mud because of the democrats trade moratorium can you talk about the two -- >> yeah. >> it's kind of archean. can you explain the two programs and why they haven't been reauthorize ied and what they do >> yeah. it is about job. good to see you, joe

pretty good week with the june jobs report coming out and the challenges there if we want the economy to grow, we need more customers with our products and services produced here in america. that's why trade matters this week is the one-year anniversary of the modernized trade agreement with canada and mexico that's a crucial week where the president's power to negotiate new trade agreements expires and i worry without that authority, the president doesn't seem to want it. we're not going to be able to get back on the playing field and negotiate trade agreements at work or america but also we reintroduced two bills, democrats and republicans in the senate, in the house, ways and means republicans that basically extend for a number of years, two bills that allow some of our poorer countries to sell pro products in the united states, to help lift them out of poverty but also to take off of american companies in manufacturing

unnecessary duties on products that aren't manufactured here in the u.s. it was a mistake for both of those programs to expire senate democrats and republicans. house republicans have joined together in a bipartisan way to extend these bills i think it's crucial for us to be able to sell, compete, not just here but around the world for us to get back on the trade field because our competitors, china, europe, japan, they are competing ferociously in these agreements work to their advantage, not ours. i think being on the sidelines is a huge mistake. >> all right we'll watch that while we have you here, we want to talk about the development the last week in the infrastructure, the attempts by the administration and republicans that come together on this and everything that happened in the meantime you know, there's the president, there's the group of senators,

bipartisan group and then there's the house. you might be able to comment on the house. how is this going to work? i saw joe manchin say he's open to -- he made some generic comment about, of course i'll do reconciliation i would be for that to level the playing field. but it sounds like he's on board with the second part what does that cause republicans to do at this point? do you think there's ten that will do -- that will get us to 60 and then they'll do another $6 trillion on their own is that something republicans should hope for? why would they do that >> i don't know if we should hope for it. i think, one, it's encouraging when both parties are working on infrastructure that makes all the sense in the world. secondly, while i think it is important that there are tax increases now, it certainly looks like we are headed that direction, and that, too, is

enormously damaging to the economy. the june jobs report are crucial. right now, you know, congress, democrats spent $1.9 trillion on american rescue plan, has only created one-third of the jobs the white house promised it would. prices are going up twice the rate as paychecks are. and people just aren't coming back to work and so as we look at spending another trillion dollars and then maybe six in the future, we ought to ask what are we getting for it right now it seems to be higher prices we're not making any changes in the trajectory of jobs and so i think other republicans are skeptical about what economic benefit we're getting out of these trillion dollar packages, including in infrastructure >> well, we had the president say i'm not going to sign it without the other one. then he came back and said i didn't mean to say that. but speaker pelosi is still

saying that the other one has to be done first in the senate before the infrastructure bill gets done. >> well, there you go. i think that's exactly right i think the president stunned everyone while walking away from that agreement anhour after he had voiced support for it. speaker pelosi and leader schumer, they were just intent on these critical tax increases and a ton of more entitlement spending, none of which, by the way, we could afford economically or from a spending binge standpoint i really think the time for emergency spending is over the time for never-ending government checks is over. we really need to get back to the focus on defeating the virus and rebuilding the economy and getting the real bang for the buck you just don't see that in washington right now. >> congressman, do you expect romney and portman and -- you

can't do the 60 without 10 republicans. do you expect them to do that in the hopes of looking like they're doing a bipartisanship deal and then opening up the gates of 6 trillion through reconciliation do you expect them to be unwitting patsies in allowing that to happen >> to be fair, i haven't talked to either, so i don't know what their game plan is going forward. certainly, they were negotiating in good faith. that scenario you laid out is exactly what i think most people fear, which is sort of a blowout on the infrastructure bill lot of green new deal issues you opened the deal for massive new spending and massive tax increases, exactly at the wrong time for the u.s. economy. and so it is a real worry in the house. i think house republicans are pretty skeptical about what's in this bipartisan bill and we yet haven't figured out how exactly

it's being paid for. so i think there's still some work to be done here. >> i just wonder whether all ten would go for it if they thought that was going to be the outcome. do they have the political will or capital to say look, we've been duped we're not going to go for this now, or have they gone too far down the supposed bipartisan road >> yeah. >> everyone wants to help the roads, do some usage fees. however you want to do it, that's fine. a lot of them are in states where they may not -- they're purple states. so they want to do it. would they do it if they knew it was going to be followed by 6 trillion would they be able to say no to that >> joe, that's a great question. i don't know the answer for it i know this week in the house, democrats are going to push through just a partisan highway bill most of it going to democratic states i don't think you're going to solve infrastructure, taking

that approach in i think every republican ought to be worried about infrastructure being another pilot chute for opening another huge spending in the tack bill as can you tell right now, we didn't get much from the american rescue plan $1.9 trillion. none of it paid for. people aren't coming back to work why should we buy into another plan that fails significantly as that one is? >> right any other areas that you and the republicans in the house and the white house can work together on to help the country? >> yeah. >> go ahead. >> a couple of things. one, we need to make america more independent from china. number of areas, crucial medi

medicines, medical supplies, ingredients. the new modern trade group, mexico and can ta, allow north america together to be more medically independent in a smart way. secondly we need to get back to negotiating trade agreements it is bipartisan we've had a huge bipartisan win under president trump. we need to build off that discuss. this trade moratorium where we're not out there, competing and negotiating, will come back and land on the u.s. economy in a big way. that is easily bipartisan. we need more customers let's get back on the field. yeah, i do see some opportunities here. >> congressman, thanks. >> thank you, joe. >> good to have you on thanks see you around congressman kevin brady. >> coming up, when we return, br brooks running company ceo jim weber will talk to us about retail sustainability and much more plus what's moving markets this morning? take a quick look at futures

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the trillion dollar club has a new member facebook's market cap reaching 15 digits after the social media giant scored two key court victories. united airlines betting big on post-pandemic travel it's united's biggest order ever it's a boone for play makers on both sides of the atlantic states across the country are moving to end federal jobless benefits early in a push to get people back to work and a nationwide labor shortage is that the right move for the economy? we'll have the debate on one of the hottest questions in business as the final hour of "squawk box" begins right now. good morning and welcome back to "squawk box"

here on cnbc i'm joe kernen here with andrew sorkin and becky quick we have at dow rebounding from yesterday. in this case now the nasdaq is down a little bit, down 23 points, and the s&p indicated, as you can see, down about two probably the yield curve going by on the bottom we've gotten down into the 1.4s. back above 1.5 bitcoin is back closing in on 36,000 again it's 35,600 something like that. almost 3.3%. doesn't look that crazy on that chart because it's long term, but it has been moving and, you know, five, six, ten percent moves are nothing. >> thousands of dollars. >> thousands of dollars. >> a day, yeah some of the other stories

investors will be talking about today. united airlines is making its largest ever aircraft order as carri carrier banks on post-pandemicic travel max jets from boeing 70 a-321 neos and replace its larger reasonableal jets it's changing strategy to focus on roomier seats and enhanced seatback entertainment yay. scott kirby joined us on "squawk box" in the last hour. >> everyone at aviation thinks of united airline as this airline with lots of potential that never really realized it. this has been a big part of it we had to create the product that customers want. that's what this is about, giving customers the product that they want. >> to help fly and service the new planes, united announced it will hire 25,000 new employees, including pilots, flight attendants and mechanics

business travel, kirby said he doesn't think business travel will return fromity prepandemicic level until 2023, but sees big increases coming this year in september and next january when companies refresh their budgets. that stock up by about 11 cents. in other new this is morning, jp morgan chase has agreed to buy openinvest, founded by former employees of bridgewater associates helping to customize the so-called esg investments for its clients. third fintech start-up since september. speaking of banks, other big financial companies this morning, goldman sachs, jp morgan, morgan stanley and wells fargo, after pass the fed's latest stress test morgan stanley, wells fargo double their dividends six largest banks to keep its dividend unchanged andrew >> meantime, let's get back to the markets right now. mike santoli join us

shifts in market leaders mike >> andrew, the growth value, swapping leadership back and forth, sometimes on a daily basis. it has been a big factor in keeping the s&p almost at a standstill in this upward grind. one-year chart of the s&p, see how it has flattened out but continued to make progress since about april? yesterday more stocks down than up once again. there's a kind of ongoing pull back in the pscyclcyclical it gets defense sbif nervous it goes toward the big markets instead of the safety plays. that's the broad dynamic capital return, you were talking about the banks raising their dividends and add ing to their buy back authorizations. here is the dividend and buy back etf, which has handily outperformed this year it's not purely a growth or value play

it has 10% of the etf in microsoft and apple. it's overweighted in health care it's basically picking large stocks based on how much money they're sharing with shareholders that's something that probably will continue to take hold as companies get back to doing maybe heavier buybacks finally in the industrial bellwether area, take a look at transports verse semi conductor on a year-to-date basis. beacons for the strength of the cycle but in different ways. semis have rebounded to eclipse transports on a year to date basis. we're starting in february where semis were starting to kind of hit a ceiling. they've correct ed for a while chopped around sideways and retaken, where you have this commodity boom theme that was carrying transports higher and that has now come back so far, guys, it's been a really tight choreography that's kept the indexes.

we'll see if it can continue without much slippage. >> has the move been made, right? >> yeah. >> if you're an investor and you say up 18%, has the move been made >> yeah. if you want to go back to march of 2020, the percentage games are absolutely enormous. when it comes to semis, i think you take comfort in the fact that it really did go side ways and hasn't been an unhinged ramp but that is the underlying key question has the market already discounted a boom time economy in the second quarter, third quarter and virtually everybody expects will beat analyst estimates? the markets have been struggling with, along with the global question of are we seeing a little bit of slowdown as covid cases rise in parts of the world? >> mike, thank you, as always. appreciate it. >> thanks, andrew. we're going to continue to talk about all these issues with chief u.s. equity strategist,

global head of quauntative research jp morgan with your background you're like a math whiz. i think that helps to some extent, when we're trying to figure all these things out. do you ever look at sentiment, or do you just -- is it all -- can we figure all this out basically if you do enough quantitative research? can you come down on the right side of things as a philosophical question >> it's a tough question there's different angles you can tackle it from i don't think you can just look at sentiment i think you have to look at, obviously, the fundamental backdrop which continues to dictate a fair value for assets and equities over the medium to long term but then certainly in the more short-term basis you have various sentiment, technical, more quantitative iss

issues, macrothat could sweep things to upside or down side and get a bit of a dislocation but it's a combination. >> you heard andrew and mike talking about whether the move has already been made. it's interesting your overall viewpoint. 4400 price target on the s&p that's a single digit return more or less everything looks good. there's been a movement already. but growth will accelerate it's synchronized expansion we're seeing interest rates stay low. you point out that some second derivitive indicators are peaking. that's not necessarily a late business cycle that's a return to normal. i don't see anything here where you're seeing caution flags for something more than just maybe a minor pullback everything is on pace. but not exorbitant gains for you. >> the growth back drop, in our

opi opinion, remains supportive for risky assets in general and including equities at the same time, the positioning is not really stretched. so we do think that there's still the runway ag again, hard to really go into much detail. what i would basically say is the summer period, next two months, is where the market continues to break out we need to see how the fall and sort of late part of the year plays out. there you could get consultation or pullback as you get closer to some form of paper and the growth policy trade-off turns less positive. i think for now, you'll want to stay the course. >> you have earnings per share for the s&p. estimates are significantly above where most people are. and they're pretty good. 200 for 2021 225, 245 for 2023. so those would all seem to imply higher rates unless multiples

contract. >> good point. what we're going through right now is an earnings expansion story. last year, you had a ton of multiple rerating. i think that's behind us even if you look at our 2021 outlook that we did now six, seven months ago we said this multiple will be tough as rates, inflationary starts to kick in to higher gear but the earning side, i think, will be carrying most of the weight that's certainly happening and we think continues to happen our estimates are above con sense. if you ask me at this point do i see upside or downside risk, i would say upside risk because top line growth remains very strong most importantly, we continue to see that companies across sectors, cyclical and more growth sectors continue to have very, very healthy pricing power and that's what you really want to see when sort of thinking about the earnings picture so we think the earnings story is not just the one or two-quarter story. i think it goes well into next year and continues to underpin

this heequity trade. >> in terms of values and cyclicals, energy, consumer and banks better than industrials or chemicals or transports? >> yeah. so, we've been on the value side since last summer and the trade since last summer has been very binary between the value and growth trade we have been seeing sort of in the last month or two that, yeah, you want to become a little more differentiated energy, fngs, bank financials, banks we continue to like. industrial, chemical side we're simply less excited and think risk/reward is not as attractive you have mega cap tech, which is well supported and certainly could add it into the value bucket that's also a scenario that we think people should have some exposure to. >> in terms of international,

the reopening benefits that hav already been seen in the united states so if you were going to play that, would you go to europe or south america, or where? >> i mean, so, first of all, i don't think the reopening is fully played out people forget, reopen something not an event shutdown was an event. reopening is a process it takes time. in the u.s. it's much further along. i think it's going to be a slow process, especially internationally, right that will continue to underpin the global economy two reallyrotations that will be taking place here, a rotation into sort of more international reopening place, where i think the risk/reward is simply more attractive and there's more potential for pent-up demand versus domestic, which is further along. the other thing that, is quite powerful, is goods consumption into service-based consumption service-based consumption is still a very big laggard

domestically, due to the nature of this cries. that will continue to surprise to the upside. think about pure discretionary plays, casinos, lodging, gaming. we think these areas still continue to hold their weight very, very strongly in the coming quarters. >> all these things are, i guess they have a life of their own and don't even really care about washington at times. we focus a lot on washington we worry a lot we worry about inflation, deficit spend ing and all these things that are happening. you don't mention any of that. it takes a long time, i guess, for policymakers to really screw things up. meantime's it's all about reopening and a solid u.s. economy and even a global reopening. that's more important. you don't worry about jay powell's decisions >> no. of course, we do

we worry about jay powell's fed decision we worry about what happens on the policy side coming out of d.c. we've written about it quite extensively earlier in the year. we're at a point where there's a lot of talk but very little that's materialized. >> luckily. >> see if anything happens on the tax side that's not in my eps estimates that is if corporate taxes go higher most likely we'll not see anything before summer recess. could be in the fall we get something. certainly, again, we're paying attention to it. in terms of jay powell, the big question is at what point do they start to withdraw liquidity? the house view for us is that that won't be until the early side, december of this year. most likely first quarter of next year. still a little too early to worry about that i think people need to be focused on, i would argue, a very healthy consumer and corporate fundamental backdrop. >> maybe they're watching and see his estimates don't have any of these tax increases in them and they're all above plan unless that happens.

then you'll have to revise them. maybe they're watching and will consider that. probably not thank you. we can only hope. >> thank you. >> you're welcome. when we come back, is it the right time for states to shut off federal virus-era unemployment benefits, or is it still too early on the recovery? a big debate on the way. next, another vote of confidence in bitcoin by star investor cathie wood we'll tell what you she just did. stay tuned u'yore watching "squawk box" on cnbc

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welcome back to "squawk box. new filing with the s.e.c. coin base, gray scale. now she wants to own the actual asset herself this time. if approved ak's fund would track the improvement of bitcoin. the s.e.c. again postponed a decision on whether to approve

the first one. chairman gary denzler has called for greater protection we'll have to wait and see what happens. >> meantime facebook is a member of the multitrillion club. the judge said the ftc had failed to show that facebook had a monopoly power in the social networking market. he also ruled u.s. states had wait tood long to challenge the acquisitions of instagram and whatsapp the state's case is off. ftc may be able to bring its case back in 30 days we will see what happens next, becky. >> andrew, thank real-time check on the supply chain of ceo with running shoe maker brooks one of many owned by warren buffett's berkshire hathaway why brooks is banking on

stability. stay ted "squawk box" will be right back.

welcome back to "squawk box. tonight we take you inside one of the most successful business partnerships of all time charlie munger and warren buffett sit down to talk about their business relationship, the first deals they did together and what makes berkshire

hathaway stand out from the pack. >> we've done better than we would have been if we copied the central ied management system. >> i wouldn't have wanted to work there. >> i know. >> would you >> no, no. >> i would have resigned or been fired. no i would rather be in a jail cell with a few people who were interesting and plenty of reading material. >> what you're saying is we may have done it, wehave created it because it was our style but it will eventually prove useful i think. >> wealth of wisdom premiers tonight at 8:00 p.m. here on cnbc joining us right now to talk more about warren buffett and charlie munger, also the american supply chain that's been under pressure from the pandemic is jim weber, ceo of

brooks running, owned by berkshire hathaway it's introducing a sustainability trying to be carbon neutral by the year 2040. jim, welcome good to see you this morning. >> thank you, becky. it's good to be with you. >> buffe it. t and munger say they don't want bosses that's probably the best thing that having money has been able to buy them, and not having people that they don't want to associate with what's it like work ing for them >> becky, i think we hit the lottery when brooks became part of berkshire hathaway. we've been at it for over 20 years. and so having berkshire in this deserve trust culture where i am basically the chief executive officer, of course, but culture strategy, chief risk officer, it's as if we own the company and we're running it that way. so it's a very unique platform, i think, to build a brand in for brooks it's been a huge

advantage in our category competing. >> jim, let's talk a little bit about where things stand right n now, especially with supply chain issues that's something that we hear constantly here is how the supply chain held up. what are you dealing with? >> we've never seen anything like it. it's all -- all the issues that everyone has in their windshield, we have, too first of all, it's demand. you know, we're fortunate because we grew through the pandemic last year 27% we're up 60% year to date as of yesterday. demand is very strong. it's not just, i think, the crusting of the ketchup and people having money and back out spending that's clearly happening retail is strong our category, we think we're in a secular running growth spurt and our brand is benefiting from that then we have all the issues in the supply chain we're fortunate because we reacted quickly. we actually got plenty of

capacity, but it's challenging because covid still exists around the world, especially where vaccines aren't present. we're at risk of a covid slowdown with protocols coming in at any time so safety in our workplaces for all of our employees is paramount. con containers, shipping, we're about 80 days for shipping and it used to take us closer to 40. so there's no question the supply chain is strung out in our industry, we feel like we're managing as well as anybody. and you can see that from our year to date growth. we're mostly keeping up with our demand right now. >> you said you moved earlier. what did you do? did you go to another country to get sourcing where are you getting most of your products from >> most of athletic footwear is in vietnam that's where we are predominantly at brooks. what we saw early was nand signals for running. we turned our supply chain back on earlier than most we did it last may

we've been adding capacity we're going to be add ing more capacity in indonesia in the coming year. that's helped us meet demand i think just reacting to customer signals earlier have served us well. >> we heard the demand story from places like nike and dick's sporting goods, too, in terms of what consumers want right now. do you think this healthy lifestyle choices, do they sort of trends and consumer habits last once the pandemic really clears up? people are already getting out and doing other things at this point? >> you know, we are convinced this is going to last, becky we saw that coming out of the great recession, too once people started to run, many of them stuck with it. and walking and just being active and getting outdoors is part of that so i hope this pandemic has just brought a more important sense of being healthy into the average person's life. and that includes nutrition, obviously. but movement and running for mental health has been a key

part of the last year. now we're adding the -- went off in duluth the past month now that the sport comes back, we think that's just going to be another impetus for people to run. like before, fitness will be all the above. i think the gyms will be coming back in a significant way. but i think running is going to be right in the middle of this active lifestyle which we think is going to be sticky. you've always been a niche brand for runners, not every athlete that's out there has that niche grown >> oh, my gosh, tremendously, becky. we're sitting here today and we think running globally could double in the next ten years. we think there are about 150 million people that run for fitness and competition, variety of reasons around the world. we think that could double to 300 million. and it's just part of a healthy lifestyle which, as we found in

this pandemic, is actually really important. >> and, finally, jim shall let's talk about your sustainability strategy we heard plans from nike, adidas and big competitors of yours what is the big plan >> we have a big announcement today, becky first we've been well at this for over a decade. runners care for us, first and foremost, it was customer-driven. they run outside these are things they care about. we hear from them often. we've had goals and an annual report in place for a long time. today we're announcing our number one shoe, biggest volume shoe and one of the top volume running shoes in the world, the ghost. the current version is being updated on july 1st. it is a carbon neutral shoe. so in our category, i believe, this is a bit like before an f-150. it's not a concept shoe. it's not an entry level or, you know, sort of a program shoe

it's our largest selling shoe. between going to sustainable materials on the upper, 59% are the upper sustainable materials and carbon offsets, this is the first high-volume carbon neutral shoe in the marketplace. we're pretty excited about that. it will be interesting to see how customers respond because the ghost is up 77% already year to date. it's selling stronger than our overall business top line is but with this attribute of carbon neutral, i think it will engender trust from returns that haven haven't looked at us before. we have to recycle the entire carbon impact of the shoe. we've signed up for the climate pl pledge, which has a net zero carbon emissions by 2040. the ghost carbon neutral shoe is the first step -- not the first

step but a huge step in that direction. it is net neutral from a carbon standpoint. >> jim, thank you for your time. good to see you today. >> thanks, becky appreciate it. >> take care. >> coming up, the u.s. labor pool is shallow this summer. should it be refilled by ending government benefits? we'll see about that, talk about it next. soaring stock market over past year ended up costing the -- will it end up costing the super rich in the long run robert frank has a story you will want to stay tuned for. you're watching "squawk box" on cnbc mother: of course and thank you guys for these gorgeous flowers, so thoughtful. young woman whispering: hey, did you bring the... the condoms? young man whispering: what's up? young woman whispering: condoms young man whispering: cond.. condor? young woman whispering: condor. why would i say condor? condoms! condoms.

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welcome back to "squawk box" here on cnbc dow futures near their highs boeing helping that, up 1% this morning. following united's announcement to launch 300 new planes elon musk will be in the spotlight today at the world mobile conference in barcelona,

to tout the advantages of star link, internet-based service, which has run into a few issues, including sensitivity, heat and other weather conditions lot of folks will be watching what he has to say there amazon's web service business still number one in that category competitors are making progress. new survey showing the unit's market share dropping from 44.6% in 2019. market growing by about 415% to $64 billion. duol duolingo is planning to go public today behind the popular language app, revenue more than doubled during the first quarter compared to a year ago it did, however, post a $13.5 million loss for that quarter. i would like to learn another language, joe. >> i was think ing the -- you know what i was thinking, andrew i'm never going to be where i can speak fluently, probably

but i could learn a lost nouns in different languages and do a lot better, i think. you know what i'm saying >> exactly what you're saying. >> you don't need to be able to be, you know, in latin -- i took four years of latin. >> that's useful. >> in high school like dan quayle, in case i ever visit la tc lativia. [ speaking foreign language >> what about that, andrew there are a lot of words where if you just know the noun, you can probably -- i'm going to give you a secret about french, andrew. >> what about it >> you watched "call my agent," right? >> i have. >> they use all the same words, they just say them a little differently. that's the trick. >> that's the trick?

>> with my flip-flops and my -- i'm with idiot t-shirt. >> where's the mcdonald's? >> we'll do pig latin and call it a day. >> we do speak a second language right? >> yes. >> sye. >> nation's wealth gap since data being recorded 30 years ago. with washington's current political makeup, that could have big implications for top earners, robert frank joins us now with more. any other country where you can go, robert r and be totally comfortable if they don't speak english? do you have one? >> unfortunately, joe, like you, i took five years of latin unless i visit -- >> why what happened? what were we thinking? >> i don't know. i don't know let's talk about this stock market it has added another $3 trillion

in wealth to american households, bringing the total to 15 trillion over the past year far and away a record. if this market rally has been especially top heavy, of that 15 trillion in added market wealth, 8 trillion has gone to the top 1% 1% has seen their stock wealth increase by 74% during the pandemic the largest and fastest increase on record. the bottom 90% of americans saw their stock wealth increase by $1.5 trillion. and rather than become ing democraticized, the market has become slightly more concentrated during the pandemic the top 10% owning 89% of all stocks and mutual funds. that is believed to be a record high share of stocks owned by the bottom 90% has fallen by nearly half since 2002 from 21% to 11% in the first quarter

middle america has also benefited from a rise in home prices real estate wealth for the bottom 90% increasing by nearly $2 trillion. joe all of this adding to calls to tack the wealthy because of all of this market wealth that has been created. >> we know why when assets go up in value, it's the ultimate catch 22. you're trying to save the economy. you keep interest rates low. assets get marked up there's asset inflation. who owns the assets? wealthy people and, you know, i've argued for years, robert, that the well intentioned on one side of the political aisle that i think always lobby for what i see are anti-growth policies, they end up keeping the fed at zero with their crappy policies. you don't get growth and then the people that they presumably are trying to help are the ones that get hurt but they don't like connecting

dots because they like to feel good about what they're doing on the front end. have you noticed that? >> well, you know, the answer, if you want to reduce inequality, ultimately, is to have a giant stock market crash. we did see a decline in inequality the beginning of 2008 and in 2000. but i don't think that's the way that anyone wants to give a fair share or spread the gain. >> plenty of people want it to happen that way. and it goes all the way back to margaret thatcher. easiest way is to bring down the top. we can all do that we can all enjoy the poverty together, i guess, if you want to reduce income inequality that way. and there are some elements try ing to do that right now robert frank, thank you. appreciate it. >> best way to replenish the labor force by tapering benefits

like some states are doing debating the key questions of a country emerging from the pandemic. speaking of the reopening, tomorrow we'll talk travel demand with ceo of booking holdings, first on "squawk" interview. don't miss it. we'll be right back.

let's get down to the new

york stock exchange. jim cramer joins us now. i'm thinking about the united airlines purchase. it occurred to me, did we ever think that travel and planes and -- we're going to need that. that's what leisure activity means in a society where you -- >> yeah. >> take care of a lot of other needs that people want to travel is this an endorsement of business travel? does that come back, too >> that is an essential question i think business travel people who pay the most united must feel that's the case i personally think as soon as your competitor gets on a plane to go, you'll go right now there's too many people like us we don't want anybody in our studio, right, joe if you want to come see me, think again. but one day, i think people are

going to say, are you vaccinated or -- use code for vaccination, whatever it is and let me come see you. and then we'll be back -- restaurants are jammed so there's got to be some business people. can't all be just locals i think it will all come back. all these people not working on mondays and fridays, i think that will end soon shall too some people are like, are you kidding me it will take a little bit until everybody feels like they're safer. do you think people are going to work three days a week and other two days zoom periodically is that what it's going to come to >> certain people have said look, if you can make it in new y york, if you can make it there, you can make it anywhere it's going to be hard work but that's coming back, jim.

that's coming back. >> oh, yeah. look, joe, 30 years ago if is with at goldman sachs and they said you don't have to come in mondays and fridays, i would come in mondays, fridays and saturdays just to make those people look bad. that would be the point. >> like 3:00 in the morning and still there at midnight on fridays and stuff, too >> i was always there. i used to teach classes friday until 11:00, then kids a test. then i post the bottom five. always post the bottom five with their names. >> ouch. >> that's what i like. if you're skrchlt p morgan and come in like variable, give me a break. you're going nowhere you're going nowhere i think this is all show show out when you want to. this is excess. >> i said it before but i liked it so much

ka it. zenberg at disney said if you're got going to come in on saturday don't even bother showing up on sunday. >> don't even think about coming in on sunday >> yeah. look, if you're incredibly rich, maybe you can get away with it i know this summer will be difficult. people will be in the equivalent of the hamptons and there are companies, like guys am boise but eventually we'll have to start making decisions about who is working and who is not. you can't just do it from zoom. >> hurry up, jim i have to get out of here at 9:00 i have stuff going on i was up at 3:45. >> so was jim. >> i was, too, posting pictures of my dog. you got the german shepherds i'm loving the german shepherds, joe. >> they are the great est. >> i want more dog pictures. i love your dogs. >> oh, god i'm not worthy i'm really not brings tears my eyes, i love

those animals so much. brings tears to my eyes. >> my wife said look at his d dogs. >> and we have pongo, too, 16 years old. god bless him. >> he's hanging in there. >> nice sunrise right near us, between you and me. >> go together with him. thanks, jim. >> i love him so much. he posted. we love your dogs. >> and i love yours. whoo got a soft spot, don't we >> you bet we do >> they all go to heaven. >> the soft spot is the softest and the best. >> it is and they all go to heaven. >> they don't have to work mondays through fridays. >> not a cinti will la of evil had any dogs, or cats, or animals. just all these humans. >> good luck becky, for the show we all want to watch.

>> thank you, jim. tonight at 8:00 p.m. >> that's tonight. >> it is. >> okay. >> thank you, jim. >> thank you. big so tonight meantime, we've got a big d debate right now in an effort to head off the labor shortages in states across the country, try something a little controversial. moving to end federally funded benefits some people think it's not that controversial before they're schedule to expire nearly 4 million americans will be affected by the state decisions thus far here to talk about the labor of market impact of phasing out benefits, director of economic policy studies at the american enterprise institute and austasm n goolsbee, former chairman of the economic advisers under president obama. goolsbee, have you been wrong the entire time? when you look at what's happen mg these states -- no, look. by the way, i think there was a moment where you and i were together on this but i wonder whether we were

wrong. maybe you needed to phase this stuff out. i didn't phase it out, but phase it out quick and early. >> i think the number one thing i always said about the economics is that the primary driver of the labor market, of the economy is how does the virus spread as you get control of the virus, the economy can come back. i actually think the next several months are going to be dramatic improvement because of that on unemployment insurance, michael strain and i talked about before, i think a lot of economists would have favored the so-called trigger that as the conditions in the labor market get better, you phase down the unemployment insurance payments rather than just have a cliff that it goes to september, turns off. to the extent states are returning to normal, it's fine for the system to go back to what it normally was but i think people have kind of

convinced themselves on one side of the aisle that this was all about unemployment insurance and the thing is, unemployment insurance doesn't explain why you're seeing middle and high-income occupations with labor shortage, why you're seeing labor the uk or canada and places like that it doesn't explain all the other supply chain shortages that are going wrong. the main thing that's happening is that the economy is trying to reopen after the winter, dust out the spiders, and get back to work, and i think cutting off unemployment insurance in places where the market is not back to normal, i think is going to lead to more suffering, and the data so far suggested has not led to a big ramp-up in job search activity by people. >> michael, do you have an explanation for the questions

that mr. goolsby just posed >> i agree with austin all of economists were interest in the triggers 7% unemployment was a commonly used trigger in proposals that advocated for triggers the national unemployment rate is well below 7% the unemployment in some states is in the 4s so missouri, missouri's decision made a lot of news missouri's unemployment rate is in the low 4% range. so i agree with austin that if you're a state where the unemployment rate is in the 4s or in the 5s, it's completely appropriate to -- to normalize unemployment benefits. i think i also agree with austin that -- that this is not the only factor at play. we're seeing some early retirements. we're seeing laboring issues with child care and school closures both of those factors are -- are keeping people out of the

workforce, and that's making it harder for employers to find workers, but, you know, i -- i think austin and i disagree, you know, fundamentally. i think it was appropriate for governors to step up and terminate these benefits in the month of june. i think it would have been better to do it in the month of may. up know, we can argue about march or april, but i think by the time we hit may, these benefits were doing more harm than good. you know, look with the $300, that creates a situation where half of workers have a higher income from unemployment benefits than they had in their previous job from working. that is going to keep people on the sidelines, and if you look at the workforce participation rate, it's basically been flat since last summer. that's the biggest problem, the biggest immediate problem facing the economy right now, and getting unemployment rates back to normal is going to materially

help that problem. >> austin, do you agree at some level this became too political? that this wasn't just driven by numbers but driven by politics in terms of the democrats -- >> yes. >> -- specifically pushing to keep the benefits in place >> well -- and that from the moment they were passed with the c.a.r.e.s. act last year, you had the republicans saying that this was the main thing that was leading the unemployment rate to be high. i think the whole situation was a big political mess i do agree with that. >> and -- and, therefore, when you look at it now, can you agree with michael with this idea that maybe some of these states should have very well pulled the benefits and pulled them earlier >> well, i mean, we're back to the same original question that the two things i observed are --

not michael, but most of the people saying that unemployment insurance needs to be cut off and is the source of the problem have been saying that for more than a year, and they were clearly wrong when they were saying it before so -- i'm -- i'm not inclined to listen to that part of it. on the argument -- >> michael -- >> june versus july, that argument. >> right. >> depends on which state, and the fact that in the states where the benefits have been the most generous compared to previous pay, they haven't had the biggest unemployment problem. in fact, quite the opposite. it's in place where is the unemployment insurance is the biggest, the replacement rate has been the highest those are states that have had the least problem with this out of the labor force so the fact that you're seeing it, it wasn't correlated with the unemployment generosity and the getting rid of the benefits

is not causing in the data a huge snapback of people looking for work makes me think that they're barking up the wrong tree the main thing that we need to do at this time is get the supply chain problem fixed and addressed. i guess the two things address the supply chain issues, and keep getting the virus down. >> right >> michael, final word to you. let me throw in one wrinkle. what is the possibility that this delta variant becomes a bigger material problem in the country, especially in some of the, frankly, republican states where there has not been nearly enough vaccination what happens then? >> on -- on the question of what the data shows, i think it's a little too early to tell the labor market survey formot of june covers mid-june and states are turning these off in late june. i think we're going to see the magnitude of the effect. i'm very confident that you're going to see an effect

people are going to go to work when the benefits taper off. the question, when will that be? i think that was a very good legitimate problem and i expect to see some regionalized outbreaks where you're going to have places of the country, but not in others, and that's going to -- that's going to have some affect on the economy, but i think it's going to have a much smaller impact on the economy this winter than last winter, because the most vulnerable people in the country have been vaccinated. >> michael, i -- i think and hope you are right michael and austapecteen, pria it very, very much "squawk on the street" will be right-of-back, after this. a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning.

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welcome back to x"squawk box. one reminder tonight take you inside one of the most successful business partnerships ever. warren buffett and charlie munger sat down to talk about their friendship and what they say makes them stand out from the pack buffett and munger a wealth of wisdom premieres tonight at 8:00

p.m. right here on cnbc. we got into some of the news of the day. a taping from about a month ago. but we talked about china. mung sir a big fan of that jack ma and what happened to him. interesting controversy there. guys, hope you can check tout and that does it for us today. make sure you join us tomorrow right now it's time for "squawk on the street". good tuesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber on the new york stock exchange. the news flow has not let up a lot of headlines in banks, airlines, big tech, corporate bonds, energy. breaking home prices in april compared to a year ago up 14.6 according to s&p, and woodstock comeback cathyie wood, and notching new records. plus