good morning dow futures are set to dip at the open, but as we have seen recently, what is happening early in the morning doesn't play out for the rest of the session. we will see. we are awaiting day two of testimony from chairman jay powell and key economic data as well and ark invest cathie wood agrees with jay powell that the surge in prices are temporary. what she says about the inflation play. important warning for chevy bolt owners. gm says don't charge it unattended don't park it inside because it could catch fire it's thursday, july 15th, 2021 "squawk box" begins right now.

good morning welcome to "squawk box" here on cnbc i'm becky quick with joe kernen and andrew ross sorkin yesterday was a mixed day for the markets. slight gains for the dow and s&p 500. you saw the nasdaq pull back slightly again, nasdaq down two days in a row. it is 1% from the all-time high. you are looking at markets that are top levels the nasdaq this morning is indicated higher up 51 points the dow at this point, giving back 70 points s&p giving back a point. looking at treasury yields powell speaking yesterday and again today. there has been a lot of moevemet

there. back to 3.42% for the 10-year. we will watch when powell goes to the senate today. let's look at the "squawk stack" and check out the movers. it is earnings season. we heard from jpmorgan chase and goldman sachs and citigroup and wells fargo. the bangking tindustry is up it has been down the last two sessions with the bank earnings. wti indicated down this morning to 72.60 this comes on all of the reports we are hearing of opec striking a deal with uae. we have seen two days of declines russell 2000 down 1.6% yesterday. down week to date. before you look at the decline this morning joe, you watched yesterday amc. meme stocks chopped in half from june amc down another a15%.

both stocks cut in half from june numbers >> 7 it was t-- 72 was the high yesterday. >> amc up 1,476% >> do you know what amc's low is, sorkin >> for this calendar year? >> not calendar. the 52-week low. a one handle $1.92. that went to 72. at 72, it had a market cap now market cap of yesterday, not including today, $17 billion it is like big moves down.

most people based on a fundamental reading of the company would say the stock is hard to explain why it is where it is. which is the nature of the meme. >> you look at every analyst report they all have sells on the stocks i now at a curious point trying to figure out the right price for the companies. i don't think it is $1 for amc they raised several billion dollars or over $1 billion to pay down debt that should change a bit of the outcome not to say it will turn into a growth story you have the same thing with gamestop in terms of not on the debt side, but what do they do with that cash i think to some degree, it has changed. you can will something into being. not into the price it is today, but probably unique and worth

more than the low. >> the mix, the elixir, the perfect storm. there is reddit and momentum we have the institutional memory there are two we can remember. similar businesses blockbuster. seemed obvious we watched that play out i think there's one left somewhere. we knew that was happening then the company that could mail you a dvd and you had to send it back that was a pain in the ass they thought that would go by the wayside. they figured it out. could this be the netflix model versus the blockbuster model gamestop is that really possible? >> i don't think the plan for gamestop is to turn itself into netflix, per se. the plan for gamestop is to turn

itself into best buy to have an online platform and sell stuff on it and have a selection of stuff with a store that people want to buy in store and not a rag-tag place which is what most of what gamestop looks like. >> best buy, you need the geek squad to put it together >> otherwise, you could buy direct from the gamemaker. >> gamestop had the geeks. i have been to gamestop. my son likes to go there the guys look like they are really good at figuring out how to work gaming they were always there as consultants. that didn't help it from having what some thought was not a great future it was so brick and mortar-y it has to get multichannelled. netflix spoiled us for what they were able to do. now they produce the great

content, too amazing job. >> i remember when i thought it was an innovation to take the dvds back through the mail. >> red box. >> i know. >> it's a good business. it's like the gift card business i look in the drawer what a great business. >> all of the stuff you never spent. >> never spent any of the money. the best business in the world i think red box is, too. we rent four movies and three days later on vacation i didn't see that one. didn't watch that one. didn't watch that one. >> we forgot to return them. >> please remember to bring them back in the meantime, let's get everybody caught up on the planner. two days of congressional testimony for jay powell this time, he will testify before the senate banking committee. then on the data front, we get weekly jobless claims and import and export prices at 8:30 a.m.

morgan stanley will report at 7:00 a.m the stock up 5% over the last week it is the best performing banks over the past 12 months. look at the chart there at the group right there. morgan has been the exception of wells, the outperformer. speaking of netflix, becky >> the great karnacki >> we didn't read ahead. >> netflix is planning a bigger push into the gaming world hiring mike verdu from facebook. he previously worked at electronic arts and atari. the company's entry into gaming is slow. it has a multi platform. we told you last week when

shonda rhimes will have a netflix show including games and virtual reality. a signal of what was to come many stock is up yesterday up 2.6%. just more of the convergence where everybody competes with everybody. you think of gaming as the new medium you are not taking about gaming and videos everybody competing for eyeballs and competing for screen time that exists. there is a limited amount of it. >> you remember reid hastings said who his competition is which is sleep recently, he said he competes with "fortnite." there is an issue with the analysts do they launch their own gaming platform and try to leverage the

200 million people that are on to try to sell them a new product, add-on product or new product as a marketing device or include gaming into the service itself as a way to continue to capture more eyeballs and the economics. gaming is not cheap. >> would they buy? >> i don't know. they could make games and the games could be on the quote/unquote service. it depends if you make a console service or do it over the net as a cloud-based situation similar to xbox cloud, which has its issues >> i had advice. >> try to get on the ipad or iphone >> if they are spending $17 billion on content, let's moving they have nothing. is it the pandemic

you were not able to shoot >> is it their fault or your fault? you watch so much? >> we are looking for a new thing to watch i switch around and say look at this hemingway thing this could be really good. it is three or four episodes we decided we would watch it then i wonder -- then i look at it and go, ken burns was on. i interviewed him all about the hemingway documentary a month ago. >> two months ago. >> two or three months ago i had to rediscover that ken burns had it it was good. >> give it a couple of months. >> have you seen it? it's amazing >> i have. take a couple of months off. there will be amazing content on all of the platforms. >> you have something you are working on, sorkin >> no, the content in production

right now you that will hit. >> give it to me i need it. i need it. prime. hbo max. >> i will say on hbo max, you know the show "hacks" you have a cameo in it >> they teased us how it starts next season with the producers in england she ratted. >> don't say anything. i haven't seen it. >> you have too much time. >> i don't have too much time on my hands i need -- you know what they rebooted "all things great and small" on pbs. that might be good go ahead go ahead gaming i'm not playing games. >> joe, people have book clubs you should start a tv club and be the kernen tv club.

>> call my agent did you see -- >> i haven't finished yet. >> in this matt damon movie. >> joe should have a tv show on peacock. >> i agree cathie wood speaking out on closing bell yesterday here is what she said about inflationary pressure on the markets. >> i think we're in a risk-off period we got hit today a lot of growth strategies got hit. a shift toward defensives. there is a lot of confusion. if growth is sfars carce becaus inflation is coming down, our strategy which generates revenue growth rates in the 25% plus range will shine longer term >> we will talk a lot more about the inflationary pressures after the break. we'll do that and figure out what happens next.

what fed chair jay powell said yesterday and debate if the government is overstimulating the economy. the dow reporting second quarter profits at4. $70 a share. topping wall street estimates. we're back right after this. i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday.

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the central bank won't hesitate to raise interest rates to keep inflation under control if they saw signs the path of inflation was moving materially and persistently beyond levels over their goals. he emphasizes he expects price pressures to ease this year. >> as always, assessing the appropriate stance of policy, we will monitor the incoming information and prepared to adjusttary i we saw signs of inflation expectations beyond levels consistent with our goal >> chairman powell blamed pandemic-related bottom necks for creating a perfect storm of high demand and low supply it should reverse as the bottlenecks uns unwind

the latest fed survey. the latest ex-pipecexpectations we have sind cindy here with us and joe with us for the americas i can never pronounce that right, joe wendy, take this on. who is right you are looking at the survey? what does jay powell have to say? >> the inflation expectations he has his eye on are long-term short-term has come up it would be absurd if they haven't given the inflation pressures. the key is if that translates into longer term expectations and we have seen that market

participants are seeing through the temporary surges and prices. inflation expectations, five years from now, look to be just about where they were over the past decade before the pandemic. in fact, they have come down since may ou i think that gives powell a lot of room to move. >> joe, transitory or not? almost like a cliche to ask the question at this point >> it's transitory this is a post-pandemic level adjustment reflects the fact i was at the white house you talked about a "v" shaped recovery. that will continue into 2021 a lot of momentum the economy has. demand has moved faster than supply more production will come online the bottlenecks will dissipate we are seeing asset markets. if you look at what equities and really estate are likely to do, you see a lot of inflation my sense is as we move forward,

the traditional inflation moderate asset price inflation will per persist. >> joe, i was talking to a hedge fund manager last week who got into a conversation who said you can't buy furniture. if you order a couch today, it will not arrive until november or december. we were discussing the idea that, you know, right now, down in north carolina and south carolina, every furniture maker is hiring every person to deal with the bottleneck. the question is come december, will everybody who needed a couch get their couch? and all of those people who were given jobs to deal with the bo bottleneck will not have jobs or the people who now have jobs all of a sudden need to pbuy their own couch? >> if you look at the data, the share of goods within gdp or consumption was rising at a 4%

line prior to the pandemic the economy shut the demand for goods surged when it reopened. that was pent-up demand. we are four full percentage points along the trend line. what happens in december, people get their furniture and you go below trend because production increased to meet demand you look at lumber prices. lumber prices exploding to the up-side. housing is booming production increased because of covid related restrictions dissipated now you meet the demand with the existi existing supply. i'm not sure that will be resolved the bigger issue is what happens on services and how much pent-up demand is met. >> joe, andrew kept saying joe he shocked me into listening

i am paying close attention. i was thinking about this this morning. this $4 trillion if you add the $600 billion in and $3.5 trillion on top that they are proposing they may be able to do it. that is $4 trillion. i can see how that has people thinking about inflation it is not even done yet. none of this has been spent yet. everything we're seeing right now is probably bottlenecks and probably reopening it can all be explained by that. not what is going on in d.c. is it possible that there's pre-jitters that the markets actually build in some inflationary fears based on what it looks like these people are doing in washington or is it too early to see the inflationary effects of that? >> the hedge fund guys want to be short to market for a while 2% plus 10-year notes. we had a squeeze last week with

capitulation if we get $4.1 trillion, which is 3.5 budget agreement and the bipartisan commission, joe, we will take a transitory inflation problem and likely make it permanent. i don't think investors are focused on d.c we won't know the details of the rough agreement will be or details until september. we will have an inflation problem if we spend $4 trillion more >> on this point, i have to say i disagree if i can jump in. >> please. >> transitory inflation pressures we are seeing now are because we are expecting a surge in economic activity that is not going to last very long it will last several quarters. what's on the table in terms of perhaps as much as $4 trillion in expanded government activity and social insurance system.

th those are longer-term changes those will not result in the increases of the economic activity in the course of 2022 and perhaps 2023 the economy will have probably fully adjusted to the roller coaster ride it is currently on before any of the significant economic effects of the packages discussed come into play >> the issue i have with that and somewhat what larry summers says it is close to p teotential you are still looking at $350 billion of activity, if you will, need to be financed or put into the economy not to mention the regulatory and tax apparatus to create the cross push inflation. >> i think on net, it's clear the policies described right now would boost potential. more than that, the kinds of spending you are talking about

over the next couple of years that might result if the big package were passed, those are completely expected. it would not be a shock and the economy would adjust and monetary policy would an jdjustn advance. you are you not talking about the surges to cause inflation. you are talking about things given the size of the economy are around the edges so far they effect aggregate demand. >> we have to leave it there for now. we will have you back on we will do it again soon thanks joe, did you know you were going to kickoff that argument >> i'll talk to denny about it we have him coming on later. we haven't spent a dime. we haven't written the bill yet. can it cause us to think it goes from transitory to longer term >> trehe is the tease.

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the miami condo market was a beneficiary of the covid migration as wealth moved to the sun belt now it is at another crossroads after the collapse of the miami beach building diana olick has more on what is happening. >> reporter: good morning, becky. they have a tale of two condos before the building codes and most on miami beach and those built after 2000 the glassy towers you see behind

me since the building collapse, the divide is wider. >> listen, no one in the right mind will buy a condo built before 2000 unless they have a safety certificate for the structure of the building. it doesn't exist today >> reporter: the condos are required to go through an inspection every 40 years, but zalewski says buyers not see the reports. >> no condo has ever openly shared that information. there is a lack of transparency in the condo market here by design it is a sell side market >> reporter: more so since the great covid migration to the sun belt pending condo sales in mi miami-dade you were up 86% from a year ago new numbers show older condos were seeing more action and average 259 sales per month versus 154 for doneecondos compd after 2000

real estate agents were getting calls immediately for bargain hunters looking for old evercondos he expects to see them buy up the older buildings at discount prices and tear them down and build pricepriceyer towers, bec. >> that is because the demand was before >> reporter: absolutely. you get amazing views. you are sitting on the beach the prices are lower you are not getting amenities in the newer towers the gyms, health clubs, 60 stories, incredible views. these are more in the $1 million range. there are some on miami beach in the price range, but the older ones at lower price ranges and that's why you saw so much activity in the past year there. >> diana, thank you.

good to see you. coming up, fed chair jay powell telling the house what he needs to see before to begin tapering asset prices. also, we are watching inflation. if we need to do something, we'll do it. that's another thing we'll talk to denny about can you do it if it gets too far ahead? that's the question. he'll face tough questions from the senate today we'll tell you what to expect, perhaps, next. >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected ent. oh, we can help with that. 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! so basically i can pick the right plan for each employee... yeah i should've just led with that...

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good morning let's check the futures. as we pointed out,in recent sessions, it doesn't necessarily indicate where we will be by 4:00 it has gotten worse in the last half hour. >> i was going to look at unh's numbers. >> nasdaq was doing better earlier. in the green up 17 points unh. tough to say man, widespread. big spread with the bid and the ask. fed chair jay powell testifies before the senate. yesterday, he told the house the

central bank is a way off from tapering asset purchases steve liesman joins us now steve, you have to be a linguist one word can send us into a tail spin or soaring based on the removal or word in the english language body language matters, too >> translation, joe, of letters and words, into numbers and terms and interest rates that's the story what i saw, joe, over three hours, lawmakers on the house financial services committee grilled jay powell over concerns of inflation powell yielded very little in terms of the plans to throttle back the easy monetary policy. here are three things he said. the fed keeps to the current rate until the employment goals are reached. the labor market has a long way to go and substantial further

progress that is the metric to figure out when to reduce asset purchases still a way off. now powell continued to insist the inflation spike is temporary. made a few concessions to the concerns and acknowledged it was not moderately above 2%. it is possible the fed could be wrong about it temporary he has this new test of what caused the fed to change course and tighten more quickly. >> if expectations do move up in a way that is troubling, which is to say materially above and persistent time, we would be concerned and react to that. >> so powell several times said inflation needs to be materially and persistently above 2% to alter the fed's course he seemed to suggest the fed could make over a six-month period joe, put that all together and

figure out a way to turn that into interest rates and terms and time >> you are talking about the nuance involved with that, steve. i hear, i hope you're feeling okay you sound raspy today. are you doing all right? >> i'm on the tail end of the cold thanks >> all right one of the things we brought up and why would anyone ever put a cat in a bag that would be cruel. if the cat is out of the bag with inflation, isn't that the worry when policymakers, especially the fed, that it can get out beyond where they can control it by the time they see it isn't that the big concern did you think that yesterday when he said if we see something, we certainly would react to it. that's easier said than done, i think. maybe i'm wrong. >> i think that's an issue i think that was addressed yesterday. probably addressed again today

powell thinks he has the tools to clamp down on inflation joe, when you look at the bond market, that could be the considered opinion of the bond market here. hey, inflation could be a problem. it could be persist sent and out there. the fed can raise interest rates. joe, it is very important to think do we have a competitive economy or not we have a competitive economy and people are making money by raising prices you should have competition. that should come in among other things with prices >> we forget how great the internet has been in terms of price discovery. until we screw that up because both sides have no tech in their sights thanks, steve. let's add the market voice denny. a couple of things to talk about here glad that we have you on number one, let's address what we were just talking about that is whether the fed has the

tools in the foresight to control inflation if it is already baked in you were around. when it gets bad, it is hard to handle if you let it get out of control. that's what we saw could it happen again? >> joe, the fed officials have been talking about what they believe is the fact they have tools for dealing with inflation. they just keep using this term tools. what are they talking about? the only tool i know is to tighten credit policy and raise interest rates and stop buying i don't understand if, in fact, they come around to the conclusion that there is more of an inflation problem and more persistent problem than anticipated, they have to raise interest rates and take the risk of causing a recession that is what voelker did

>> the other issue that just occurred to me is that and i'm trying to figure out whether inflationary expectations can become reality before they actually should be because right now we have bottlenecks. chips, reopening, it all makes sense why we're seeing and trying to get people to come back to work you have to raise wages. it could be transitory we also have a very activist administration thatcontrols both houses, essentially, the $4.1 trillion is probably not just someone's fantasy it could come close to happening. i can't imagine that is something a monetarist would say is already happening >> i think clearly there is a

prospect for more fiscal stimulus coming out of congress. if you look at m-2 m-2 is $5 trillion higher now than before the pandemic m-2 is basically equal to a year of nominal gdp which is at a record high. people look at the nominal gdp divided by m-2 i like to look at it the other way and point out we have a year's worth of nominal gdp in m-2 today. that means a tremendous amount of stimulus still leftover, if you will, which has been parked or in liquid assets that could continue to fuel strong nominal economic growth. since we are basically having real gdp at an all-time record high during the quarter just ended, that could certainly produce more inflationary

pressures. the fed keeps talking about bottlenecks and base effect. there are lots of variables that suggest the longer they hold off on raising interest rates, the more they riskinflatio into the system. >> we have more coming up. you are bullish. you are bullish on the stock market and say stay in there and it will be tough that ship is continuing to move. you look 4,800 on the s&p by mid 2022 with all of this other stuff? >> yeah, right don't fight the fed. if powell keeps interest rates near zero for longer than makes sense to me, i have to go with that that leads me to conclude that stock markets will go higher >> all right you are convinced if we do $4.1

trillion, is that a negative down the road for the economy and interest rates initially it would be stimulative. that's a huge number >> that a shock. that increases the reality that inflation would be more of a problem. >> thanks, ed yardeni. they started at 6.5. now it is 6. now they are trying to tell us, down to 4. we're giving in. we're down to 4. when you start at 6, that's insane 4 is inainasinsane you start at 6 suddenly, 4. great. thank you. >> it's called an anchoring technique. anchor coming up when we return, gm

telling chevy bolt owners not to park the car in the garage, yup, because it can catch fire. we will talk to senator pat toomey over what he expects to hear from jay powell after this. >> announcer: currency expect is sponsored by interactive brokers.

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olympics are coming. coming very soon when we come back, we'll talk about new data on the return to the office the network finding an uptick in companies with the conflict with staff and executives over back to work policies we'll take a closer look at those trends next.

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businesses are bringing more employees back to the office and faster than expected that's according to the latest office re-entry. a surray of chief executives and heads of hr publishing today the data shows plans have

accelerated since march when 49% said they'd bring their workers back by the fall that number has climbed to 74% 20% said they have actively moved up their return date this shows how quickly things have changed and the numbers of covid dropping pretty rapidly, right? >> yes i've had two interesting engagements. one with a group of ceos and the other with rank and file staff the response was, what's covid we are really at that point tongue and chief where people are going out and living their lives. right now, companies are bringing people back >> i guess with corporate leaders, they look at people

being out of their lives and socializing and going to parties, they think, hey, if you can do those things, you can come back to the office too, right? >> i would think that's the number one view. you'll go to bars and get on an airplane, why can't you come into an office the number one thing is if we were so productive being great from home, why do we need to come back? that's the intersection and conflict and why we are having the hybrid re-entry versus the five-days a week is to have a compromise >> you also found employers are expecting the conflict to rise as they are getting into the midst of this? what are you seeing and what do they do besides hybrid is there a point they say you work for us, come back

>> if you eliminate the hospitality sector and automation problems, i would believe we would have lower unemployment than prerecession employees are saying right now, some of them, i want to have this flexibility we are seeing employees that spend more than four years at the same company are more inclined to come back. the people that seem to be serial job hoppers and have new jobs every one to three years. it ties in to, am i engaged with my company and wanting to play a role here. the overwhelming majority of those are more optimistic about returning to the workforce >> as you mentioned, it is an employee job market now. if you want the talent, you have

to be flexible >> we used to call them road warriors people who were on the road got paid more and you had to pay for that it is something a lot of ceos and heads need to talk about is will we need to get a premium more days in the office. i think three is really foregone but when we get to that 80% of four days or five days a week will depend on what kind of perks and are we getting to get back to that perk battle or will we pay you a little more to be in the office. >> if you are paying for commuting costs, maybe you should get a premium >> maybe we should we are acting like 15 months was 15 years ago people were going into the office all the time. we had a situation that was a tragedy and we are acting like it was the greatest thing that ever happened to employees

the companies will reinvent themselves the emplo iy needs to add more value, not less. >> tom, thank you. we'll see you soon coming up, futures down 164 on the dow nasdaq still up. we'll talk to senator pat toomey about what he peexcts to hear from jay powell in second day of testimony. we'll be right back.

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good morning, everybody. under pressure dow futures dropping a developing story on general motors the company warning volt ev owners not to park inside or charge vehicles unattended this comes after two fires netflix looking for its next big hit and they are turning to video games. the second hour of "squawk box" begins right now good morning and welcome back to "squawk box" here. take a look at u.s. equity futures at this hour we'll see where things land by the end of the day the dow looks like it will open down it has moved and nasdaq up

s&p 500 looking to open down about 10 points. also showing you treasury yields we'll hear from jay powell again. you are looking at the 10-year note at 1.329. we got a bunch of other headlines as i mentioned fed chair is going to be back on capitol hill for his second day of testimony he told the house panel yesterday that higher than normal inflation will persist for several months but he still feels like he would yield after that the fed would be prepared to change the policy. ranking member pat toomey will be among those questioning powell later today he'll be with us first here on cnbc just a little later this hour the jump could mean the largest raise in years for social security recipients. the senior citizen league now

estimates the next year cost of living adjustment could be as much as 6.1% that would be the largest since 1983 and compares to 2021 adjustment of 1.1% maybe time to talk about adjusting. the cocreator of dogecoin said the cryptocurrency is, quote, controlled by a powerful car tell of wealthy figures and leveraging a network of shady business connections bitcoin now dipped under $32,000. still in that range between $30,000 and $35,000, doge which was supposed to be a joke turned out to be a joke on all of us. >> 19 cents.

jackson palmer i love his music okay now to our all-star team of cnbc reporters. we have glossed over one of these stories. as child tax credit checks have arrived. phil lebeau is following the gm battery problem? you have to watch it watching a car charge is like watching -- how long does it take have you ever watched your iphone charge? >> i don't want to watch my car charge, phil i'm sorry. >> nobody wants to watch their car charge >> worse than paint drying dom joins us with a round upof

the morning movers >> there are moments i have staired at my iphone charging. we have some earners around the top of the hour here the bank trade continues to be a key focus for many traders and investors out there. unchanged on thin volume still, u.s. bank one to watch in the trade. key corporate and fifth third banc something to keep a close eye on because we continue to watch the entire complex due to the comments from fed chair yesterday. the difference between shorter and longer term treasury continues to get lower it shrunk again.

the other big stories now netflix shares are up pre-market now. they made a key hire of a facebook executive that was in charge of their gaming initiative looking at speculation of streaming games. you mentioned dogecoin before. more and more, i'm talking to people in that space who continue to watch $32,000 as the key mark for bitcoin bitcoin a key level to watch if it goes a key level below, it

could be a hard time for currencies. >> thank you, dom. the white house is now celebrating the enhanced child tax credit as groundbreaking not just because of the size and scope but because it is the first major tax credit available in advance and paid in months. parents can receive up to $300 a month or up to $3,600 a year older kids, it is $250 a month or $3,000 this year. treasury estimates $15 billion will go out today covering nearly 60 million children comparing these to social security because they are regular and reliable treasury secretary called it both an economic and moral victory for america.

president biden has proposed extending through 2025 estimated to cost $450 billion senate democrats said the funding extension is included in the $3.5 trillion budget resolution but did not specify for how long white house is facing pressure from progressives to make this permanent. >> part of the question going into inflation is looking at something like this. i think this has been an overlooked stimulus. there are a lot of families who need this and others who make a whole lot of money who probably don't. the payments were skaped to households making $150 for a duel income. so they did try to limit who

would receive it compared to previous stim laus payments and believing or hoping a lot of the money rather than being spent on durable goods would instead be spent on services or put the pressure on supply chains in the same way spending on touches, cars, et cetera might do there is hope seeing this spending on consumer goods and services will help alleviate some of those concerns certainly, a lot of republicans are pointing to this saying this will be yet another incentive and exacerbate the unemployment and recession abundant in the economy right now. okay now to general motors. the company warning bolt ev

owners not to park their vehicle inside or charge them unattended overnight. phil is reporting on the fire risk >> this is one of those stories that as it continues to develop, general motors is trying to get their arms around this as quickly as possible. not only for the sake of bolt owners but evs are the future. the statement general motors issued it impacts between 2017 and 2019 model years. owners being told do not charge overnight unattended and also park it outside after it is charging they don't want it in the garage because of the potential of a fire risk. there have been eight chevy bolt fires. we'll show you picks of a chevy bolt that caught on fire last week this bolt by the way, belongs to

a vermont lawmaker who has been a supporter for electric vehicles it caught fire after charging. the interesting thing here, this fire happened after it had been repaired back in november when this first came up, general motors issued a recall this is one of the cars that got fixed. gm is pushing this and it wants to getthe issue fixed as quickly as possible. the cadillac lyric coming this fall the all electric hummer. gm has set a goal to sell 1 million electric vehicles annually by 2025 this is the future and a big reason why shares of general motors have been moving higher

the optimism that gm will be not only competitive but a leader when it comes to electric vehicles gm is vesting $35 billion between now and 2025 in electric and autonomous vehicles. also building five battery plants in the united states. this is the story that will linger general motors needs to get this address. they thought they had it addressed. clearly this was being addressed. owners said don't charge it overnight and do not leave it overnight. >> phil, the technology in some of these newer vehicles coming off the line soon.

>> the issue appears to be with the battery cells and anomalies or defects it does not appear to be an issue that will impact vehicles currently being built on the battery platform we talk about this a lot with these tesla battery packs. they burn long and hot fire crews have struggled to put

them out is it safe. if i can't charge it up, this is what gm needs to address >> the fact that we are having this conversation on television publicly that this advice is happening creates those questions. is there any work being done on batteries themselves so that fire trucks are not going to get called in the future and there is a way to somehow -- >> yes allah makers i think what you are getting at is can we ever trust the battery pack they are always being refined. that goes with the way they are

built and software all of the automakers are constantly modifying the technology >> remember what happened with the porsche and their battery. would you say tesla is ahead tesla has problems too would you say these are growing pains or something across the board for all evs? >> i think tesla has dealt with it a little more publicly. remember, gm, the chevy volt, it was a hiybrid. they had fires early on. we covered it. they addressed it. it is forgotten since then gm can get past this as can

porsche and these vehicles there are growing pains. any time you talk about a vehicle catching fire immediately people sit up and say wait a second gm needs to address this as quick as possible >> appreciate it thank you for keeping us up to date on all of this. when we come back, a new report on racial inequality in the wake of the pandemic. we'll talk to a coauthor of that report first, check out shares of apple right now. the stock up 9%. pps.s leading the dow as it stay tuned you are watching "squawk box" here on cnbc

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a new report highlighting racial inequity and charting a path forward part of the annual series on the state of black america and encourages the reunification present in the early days of the pandemic welcome president and ceo of the national urban league and dr. lisa cooper. director of john hopkins health and equity and coauthor of the

report of why disparity is everybody's problem. i want to thank both of them for joining us i want to start with you just sort of walk us through the highlights, if you will, of the report what is the newest element here? >> i think the new element, andrew, is to understand that 2020 was a wakeup call on a number of issues and now we have an opportunity to rebuild but rebuilding should not be a return to before rebuilding should be a call to action to build a more diverse, equitable and inclusive america when it comes to the see con my, health care and the justice system authors like dr. lisa cooper with her brilliance and insight help those who will read the report to understand what that

means. that's what we tried to focus on is a forward leaning prescriptive approach to this. more than being diagnostic because of 2020 rocking the nation the way this did. let's commit across the board, the public and private sector. to build a more diverse, if you will, equitable and inclusive america. >> so doctor, what does it mean? >> we have to realize how connected we have. we have seen over the past 18 months, when one person is ill, we are all at risk that's one of the things i talk about in my essay, my report and my book. that we have to work together.

it means everyone, whatever sector of society you live in, whatever state you live in, we have a role to play. >> make it practical for viewers. we have business leaders, regulators is what are we saying here >> we can't only focus on your organization or business you need to do that for sure you need to look to see that you have equity practices and policies and being fair and addressing people holistically you need to look beyond your walls to see who are your partners and who are those people that have a role to play

in helping to create a more inclusive community. >> build programs together that offer health and well being and make your organization one that is more productive it is better for us on the overall level in our society if we are equitable. >> i wanted to know who you think is doing it right? we have leaders who listen to this and say, i know i want to do better but they don't know necessarily what the front star looks like or what the great example of this is >> i love them to call me. i have that more extensive conversation with them andrew, in 2020 and following, many american businesses made

commitments and issued calls to action just yesterday, a number took a strong stand on democracy and voting it is the right first step to take the challenge is going to be, to be consistent and recognize a one-time commitment doesn't create a new normal. there are a number of companies with whom we have worked i'll single out a new initiative last week with pepsico which will pump dollars and mentoring and training into the black restaurant sector, equity grants new companies that have entered into diversity agreements like t-mobile, comcast as well as charter communications there are a number of companies

who have taken very significant steps. my challenge and my call to action is to follow through, make that consistent and ensure you are getting the results. the role of a private sector cannot be overstated many have taken important steps. i want to just say to those who have not i think it is important that you do your customers are exhibiting it it aligns with how we are thinking we will overlook those who are taking the right steps we encourage them to do more and be consistent. >> marc, we appreciate it. marc will be leading a group of

activists and leaders in health and the economy on a deeper discussion streaming on the state of black america.org. thank you this morning when we come back, will the higher demand for pcs last we'll debate that after yesterday's windows 365 announcement watch the solar stocks most of the names down all down big biggest loser there sunpower down 15% early trading, we've been keeping an eye on what's happening. most rebounding at least a bit stay tuned you are watching "squawk box." this is cnbc iv> time now for today's aflac tria question.

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no the answer, 1926. pauline bell won in the boee's second year. since the inception in 1955, 50 winners have been female microsoft announcing windows 365. a new way for companies to offer new pcs to employees as a service. as pc buying has slowed some what. >> not saying i'm down on pcs. pcs is something we especially needed like tiger king and meme

stocks but coming out of the pandemic, things will have to change the offering of 365 is an acknowledgment of that fact. meaning people won't need a physical need as much. you've got to imagine everyone got one or two in the past year. before the pandemic we were on this march toward pocket and wearable devises. >> on the other hand, not like people who got used to working on pcs at home are going to

stop saying the biggest part of shipments were down in q 2 wasn't because people didn't want them, there was enough supply to meet demand global pc investment grew. will we see the spike like the one in 2020? no demand isn't settling down to what it was either saying hybrid might keep the need for good camera and abilities and microsoft allowing a hybrid schedule some days working customer support from home if others offer that, more pcs

will be needed than ever before. >> are you surprised at the lasting staying power of microsoft at this point? other companies come and go and here we are. it was they were still making money in terms of emphasis will unlock what they are doing to build cloud capability >> did i hear you say tiger king did you see this news. federal appeals court has vacated joe exotics 22-year prison stint >> my goodness >> you didn't know that?

things just happen that's the intersection of luck and hard work. doesn't mean he's going to get out yet. on page two. hope springs eternal >> maybe pcs and tiger king still have room to run we'll see. >> john, always great. thank you. >> thanks. in the meantime, morgan stanley out with quarterly results and stocks down a little >> numbers ahead on both lines eps $1.85. forecast is $1.65. institutional security $7 billion forecast was $6.7. up 16% by 2.4 billion. trading down year over year. broadly in line with the others.

all down about 47. equities up $2.8 billion ahead of the forecast up 30% year over year including e trade pretax margin. investment management 1.7 billion a little ahead of the forecast this now includes the acquisition. compensation expense but the forecast was 6.2, 6.3. a pretty solid simple beat on each line, as you are saying but coming into today, only two banks are still up significantly. wells fargo up 2.5% and so is morgan stanley gold was kind of flat by yesterday.

bringing it all down to where they all are shows that these banks are beaten and are up 30% to 40% pairing back some of those gains. surprised to see some of these numbers. >> was it par for the course i think the banking index was down more than 2%. just like you said we came into this on very high stock prices hard to jump all over expectations we've been saying it continues to be an investment banking not a retail banking year showing the decent beat

similar to goldman sach which is a really good beat still to come, jay powell is testifying before the senate banking committee today. senator pat toomey is among those questioning the fed chairman first he'll join us live stay tuned to "squawk box" on cnbc

welcome back, fed chairman jay powell will be testifying again today. this time in front of the banking committee. saying the economy could still use some improvement today, senator pat toomey. he will be there asking some questions of his own after what you saw yesterday with the fed chairman, what do you anticipate asking him today? >> becky, thanks for having me i remain concerned the fed has constructed a paradigm that almost guarantees if this inflation that is now with us. it is already here

if it lasts longer than the fed thinks and they've been wrong about the level of inflation they've been under estimating this at least all of this year if they've been wrong about how brief this will be, they'll be behind the curve especially at a time when they know this has been a time of employment maybe even full prospect i hope jay powell is right and

this spike turns out it be a brief and passing thing. >> what has he told you? >> what is different is that we have new data. we didn't have 5.4% cpi for instance it has gotten worse if inflation starts to really take hold, it will move and change their policy to address that i can't for the life of me

figure out how it makes sense buying securities when the housing market is going through the roof and is unaffordable in many places. i think he does need to hear that push back and other topics as well. >> we had larry fink on yesterday and former treasury secretary. both of these think this is not transitory and that these hire inflation rates are here to stay what does that mean? it is gone in three months, six months a year from now? >> this is part of the problem the paradigm is established? also, they want to tolerate the rate above the target for the determined period of time. we have it it is with us, how much longer does this go on?

it is subjective and defined i understand really thoughtful and smart economists that the risk saying if there are enough votes, there would have already been a vote and what about the 10 republicans and your view point of what happened on that

agreement saying that does not bee fall this. >> look at the total will. they already did $9 trillion on the vote a physical infrastructure bill has another $600 billion above and beyond what we would normally spend they just celebrated this $3.5 trillion. that's $6 trillion above and beyond the $4 plus trillion the federal government will spend anyway in a given year over $1 trillion that is staggering and dangerous and in the back of the minds of a lot of democrats thinking do we want to do this point when we have this mountain of debt already? >> thinking about that later

bill you look at the content of it, it is pretty radical and a departure from where democrats have been to really make the middle class part of the government you have to ask yourself, with do we want a massive tax increase for that? >> you have to ask yourself -- >> nothing to do with it >> they let bernie into it >> bernie wants six. >> that was just to make 3.5 look like a small number >> and we should say thanks. thank you. >> no. i'm sorry. this is stuff even they didn't used to want lbj's great society program was

meant to transfer wealth to poor people in an attempt this is about transferring massives amount of wealth to middle income people >> 40 years ago, we didn't know. with he were cooling back then >> i want to see if the chairman's view on a central bank digital currency have changed. i think the tone changed a little bit i don't want to read too much into that. that's another area i want to discuss. >> an area you are concerned about or you agree with? >> my concern is what is the problem we'll solve? i kind of reverse the order the chairman posed which there is no need for a private stable coin with scentral coin

if it's backed by dollars. i worry about the central bank digital currency on a number of levels my colleagues want to use that to have the fed become the retail bank for every american i thinks that a terrible idea. jie just want to understand. jo we look forward to those questions and answers later today. thank you for your time. >> a programming note. don't miss the exclusive interview with treasury secretary janet yellen at 4:00 p.m. eastern time. and joining us on the big push by netflix into, yes, gaming "squawk box" returns after this. i know some consultants with great ideas. can they help us improve our digital experience?

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week every time you see yields pull down, take a look at the futures today. you'll see the pressure. we were weaker as yields were touching those lower levels. a question as to why and a lot of answers depending on who you ask. an impact on treasuries and the ock market we'll have more on this when "squawk box" comes back.

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news on netflix planning a bigger push. hired video game executive from facebook previously worked in electronic arts at zinga and atari. who should we call about this? rich greenfield, you really aren't, we've talked about that in the past. it looks like you are but you are an expert in gaming, aren't you? >> my colleague brendan cover video gaming the thing everybody should be thinking about, the media space now, it's a war for time and

attention. there's been lots of launches. the growth in time spent on gaming has dwarfed the time spent on video i think it is a very natural progression looking at netflix to think where is the natural progression going. you've already got 200 million people around the world using your application on multiple devices. why wouldn't you want to expand into a category rising rapidly into overall time spebt. i think they'll start with mobil games and things that work on mobil devices first. >> i have three kids and my

11-year-old is obsessed to watch people play roblox and mine craft. >> people make millions playing video games. >> a huge part of time spent is playing and watching people play video games. netflix already has your time and attention. this is a way to expand it it is very natural this would worry me. does it worry you or does it not say what's going on? >> there is conversations about

gamestop doing subscription video games a decade ago they've been asleep at the wheel too long there are really powerful companies most of the media space has said we are not going to do games. saying we really understand the technology and subscription. we are not going to create a separate app but gives me more to do through netflix's. >> the spy >> no. >> the statue of aaron cohan

>> no. >> the spy, you should watch that the media space is dramatically changing and there is so much amazing content. you can go watch black widow >> we'll see i'm back to pbs. short seller carson block sounds off on the china crack down. we'll be right back. she'll say she's got goals. and since she's got goals, she might need help reaching them, and so she'll get some help from fidelity, and at fidelity, someone will help her create a plan for all her goals, which means suzie will be feeling so good about that plan, she can just enjoy right now. that's the planning effect, from fidelity. i think you're going to like it here.

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lower by about 150 points. as more corporate earnings roll in, we'll bring you the updates. a recap of what powell told house members and what you can expect when the senate committee grills him today maybe we can call this the short hour of "squawk box. still 60 minutes but we'll be speaking with two active short sellers. his allegations and you don't want to miss any of it the final hour of "squawk box" begins right now

good moorrning and welcome back a lot more on the equities treasury yields 1.3% on the 10-year. a little belowthat i don't think the quality of questions were great >> can you insult anybody else

>> politicians yap, yap, yapping. >> we get a lot of fed speak >> when jay powell speaks, people listen. >> i know we have to listen but about 12 of them talk and tgs a big paurt of our life. it should be an inflection point. the evidence keeps mounting of inflation. a lot of questions to be asked of that. a few other stories people will be thinking about. general motors telling owners of the bolt not to park their car inside or charge them overnight after two recent fires covering bolts from 2017 to 2019 model years.

some were recalled and fixed also issued a similar order a recall of its own. >> after the potentially cancerous causing benzine is in its products they are investigating how it got into its products. >> amc is down about 5.7%. this follows some big declines and already been down some four days in a row. 54% away from its all-time high. gamestop, that was the original

meme stock down 25% up 89% other key stocks on the move and dom has been looking into all of them. >> a quick earnings wrap big banks are still in focus out there. morgan stanley stock comes off a big earnings beat. revenue beat as well shares are up as well. already up about 10% over the lows we saw over the course of the last month maybe the setup was good news. better than expected revenues and profits and expected results in equities, business.

two other banks we talk about regionally both better than expected as well down 61.60 and 55.40 up nearly 2% both of these have come out with better than expected earnings as well both of those tickers in the top 10 in yesterday's session. check out the 10-year note yield. number one, most searched item because i have run out of runway, i've put the rest of them up on twitter and put in some of the other moatable in the top 50 oatly was one of those most

popular searchers yesterday. >> let's advertise the handle? >> at the domino i've put out the top 10 daily tickers. and some of the notable top 50 it gives you an idea of where the interest is and where people go to our website. they look for certain things and where the heat map is on those >>. dom, the social media influencer >> not like you. fed chair powell set to provide more commentary. paying close attention

he'll appear are they better questions versus more of the same from the house? the people's house offers questions. >> i'm trying to figure out why we ever had the cat in the bag we'll see in about 90 minutes if the senators have the same concerns as their counterparts in the house and if they are able to move the fed chair any further in the commitment. there was some skas piration

a very small group >> with all due respect. it's housing, appliances, food, electricity, gas >> well, so. we are monitoring the situation very carefully we are committed to price stability. >> powell said the fed will keep to the current fund range of around zero. employment and inflation goals still have a long way to go. a metric when the fed uses its asset purchases is still a ways off. continuing to inexist a and acknowledging. if the fed was more inflation materially and consistently above. getting more details about what

that means and more time >> looking to try to get some interviews, steve. can i ask you a question, steve? what is the best leading indicator or predictor gold seems to have lost some of the predictive ability they are gone and we don't know where the interest rates would be can you watch tips what would let us know if the cat was getting out of the bag poor thing >> poor cat. i like long-term investment. i don't think the short term tells us much. i think with people over a long period of time up their expectations for inflation and keep it there.

i thinks that a problem. >> what is that? >> there's a bunch of surveys. university of michigan asks their students, as you know. i don't know where people get these. they ask their students. also the tips market wihich has been relatively quiet. that's another but i also think the bond market and an idea that cannot express its use. i think they could run for the hills. main that is muting the move

higher thanks, steve. viewers can catch another financial heavy hitter a first on cnbc interview with treasury secretary janet yellen at 4:00 p.m. eastern when we come back, the company making its case against oatly pushing back hard. carson block will join us to talk about china's tech crack down and ilitimpcaons. stay tuned on "squawk box" cnbc. 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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and trying to free up lending for small and medium sized businesses >> that country's recent crack down has led to a raft of questions including some anxieties over whether americans will put as many money into the companies and whether the firms will think about trading in the u.s. in the first place. joining us is someone who knows china well the markets well the founder of muddy waters research was that a watershed we always knew there was kind of a degree of fickle isity that's not a word but fickleness with chinese regulators when they decide to do something or not do something is everybody on notice now

i think it is actually pretty big. there for these would not delist these companies in china it is probable now they'll see these companies delisted. that's basically also xi's thinking that the u.s. will go forward and delist if xi will not give in on the inspection issue. that's what i mean and it is

pretty big >> what do you think changed there. a lot of feelings and the presentation president xi presided over. was that part of it or the straw that broke the candle's back with didi? is a cold war brewing. about protecting private property from the interest in china, there was real tension the participants in the u.s.

this was kind of the last high ground in the u.s./china economic relationship. i thinks that because frankly banks in the finance industry were able to successfully lobby for so long to keep the channels open here? you have a situation after lucken last year that happened during covid and congress unanimously passed this bill when president trump signed it into law trying to get in earnest at times or there would be relisting. i did feel china would relent.

because so many senior party officials held in the proxy. this is more to serious people in china that they have off shore. when xi surveyed the landscape i don't think there was anything special about didibut that he realized that this likely is going to happen and rather than it seeming like this is going to happen on the u.s. terms where we kicked these companies out, i think xi is trying to message this as, hey, china is trying to issue these companies and is the one driving this as opposed to letting it as part of the delisting process.

that they would have started the wane now with the internet and everything else. saying you have capitalism and sooner or later, more personal freedom. how does that happen does that weigh into this? we don't want to do it with all of our companies here and china. that seems to be about money and power. it is hard to separate >> there are really two different points there we think about applying the view and living in china between 2005 and 2010 that this notion of people across the world think the same way when it comes to

economics and money. it is just wrong what is logic to us and sim people is those in the culture you have to single outthat issue china has been very sensitive about mapping data i don't know whether didih has opened it up with mapping data or the decision was used as a warning shot to think you are going to be delisted so what should your plan be accordingly?

>> do you want to do on the short time or the long side to stay out of these? >> china stocks have been short on this side significant amount that hasn't mattered i like to joke that u.s. investors are constantly reaching for blue bills to crunch and snort when it comes to chinese companies this is a much bigger issue. i do think the sec needs to bring in data to look at trading in the markets and if they do that, which i don't think they'll be able to do that

when they kausaw the data, ther are a lot of issues there. >> you know kyle bass? >> yes >> with both of you on and just go back and forth. >> that would be great >> i guarantee that would be blocked out in beijing j thank you. coming up from one short seller to another. oatly now having to defend itself against some new allegations. we have an interview from the management founder who is making them yes, thank you, that was fast. sgt. houston never expected this to happen. or that her grandpa's dog tags would be left behind. but that one call got her a tow and rental...

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up next, breaking economic data stay tuned "squawk box" is coming right back

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welcome back live at cme hq. manufacturing at 43. these are big numbers if we consider that 50.2 was a high 48 years ago. philly is 21.9 and philly is the

one i was concentrating on that is a big deal and if we look at jobless claims 2,241,000. on initial claims. 360,000 also a new post covid low. don't quite see them yet good with respect that 136, 138 zone i tell you what, all the retail moves and insta institutions wi

pocketfuls when they do, they come back back to you. >> why you neeld this morning. just more buyers coming in because it looks like the best place to be? >> it has to be from the growth cycle. here and now and those with parking lots of liquidity. buyers of treasuries versus sellers for the time being and i still don't even they we've reversed all of the steepening mentality and all about growth from the global investment perspective. the only way you'll draw out your own selling to overcome some of the policies in the

federal reserve. >> real quickly, powell said he doesn't want to do anything before his time. i get that the time has come and passed i think it was after the last crisis >> looking at it from equities perspective. whether you think that should have already mom and moved >> exactly that way. he had a relationship with us decades ago also another issue here, when we talk about the inflation showing up i think the dollar index is as

rough a guide you'll get just like in the credit crisis they'll keep pumping and pumping higher they'll look at a live picture people are holding and buying equities it all fits. >> thank you it is good to see you. >> in the meantime, steve joins us with more you've been digging through. what is your take away two forces coming along. look at what is happening with the empire fed manufacturing is going off the charts then philly fed also doing very well jobless claims are going down.

inside of the reports hiring is doing well arguing for the nature perhaps in the following way we have a massive surge and demand it has been a huge call on the resource and economy for the time here, we have this call that raises prices and overtime, it ends up abating on the return of normal activity. >> you have the inflation and the help those are the two most important points going on right now? >> what happens if the delta variant and a little more on the read of the economy.

what if that is -- >> i think it is an important point you raise. from my beat and my perspective, that is the sort of risk that keeps the fed's hands steady it doesn't know. i don't know if we are able to come on air and say people should get vaccinated. i know they should when you think about returning to normal activity until the world returns. it's very hard to argue the u.s. is getting back to normal. >> there is an opportunity to get vaccinated here that doesn't exist in other places in the world too. joining us now from the economic data front.

chief u.s. economist add to the picture we've already seen this week holter than expected cpi and inflation numbers. better than expected economic news. >> i think we are dealing with the easing of the demand shock and still the supply shock what you are seeing is demand whether consumption or production is quite strong and vigorous it is really the supply chain causing problems and not keeping pace this is very unique and unusual. we don't usually start a cycle with these inflation measures.

the supply problem some of them will work out. they'll say this is not a problem that will be fixed some time this year maybe lal be able to catch up. ifs that the case, how could it be transitory? can that mean something that cleans up a year from now? >> it is a great question. that really is at the heart of the issue here is how long is transitory in our view we'll see sticky and uncomfortable inflation for longer than when the fed deserves we are probably in a period we'll see above 2% for multiple years. that's not necessarily bad news for the fed. the tricky part is, as long as we continue to see much higher

inflation, then they could dislodge or unanchor the inflation and that's a whole different game >> that leads to what? if it gets unanchored, it goes from a spiral to that? what do you mean >> they start to expect higher inflation and accommodating the higher wage group and could risk losing control at that point >> i can't remember if it was late last week or earlier this week the highest level since it was keeping track. only been about 13 years since they've been tracking it because of what happens when consumers expect it, it becomes

a foregone reflection? that's right you hear chairman powell speak and he acknowledges inflations and those running with ease and the key is the economic inflation factor >> look, inflation is always transitory the question of how long becomes the real issue maybe the fed chairman can give more on that today. >> i think he wants to stand steadfast in his view. i think he told us if need be they will change policy and flip >> he gave us a six-month marker

and we'll get back to settle out. >> why couldn't reopening inflation and supply chain inflation be transitory but $4 trillion of new spending after we already spend two or three, why couldn't that go from transitory to permanent depending when we could do that. why couldn't that become permanent? >> the risk is there we have the most policy in our history and now we have the supply chain issues. ingredients are there for that that's the risk. the impulse is easing. the fed will act i don't know that the rates is

the problem. if they have to. >> what do you mean the fiscal impulse is easing? what are you looking at? they are not spending $10 trillion >> the change in the fiscal policy we have about $5 trimmon or so from the fiscal side and we'll probably get more. the range is unknown and that is less some of that new stimulus could help on the supply side of the economy. that's over time >> thank you for joining us. i like your analysis and i like your dishes behind you too >> thank you when we come back, jim cramer is going to give us his take the interview with the new short-seller targeting new oat milk maker oatly the company says he's making

false and misleading claims. later today, you don't want to miss jeff gundlach and later treasury secretary janet yellen at 4:00 p.m. eteasrn a big day across the network we return right after this

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let's get down to the new

york stock exchange. your hears burning carson referenced you. we know muddy waters carson, i don't think he's ever met an income statement or balance sheet. what he said about the chinese listed companies he said they are all involved with some kind of things at some level and we need an sec-type thing. and cramer would advocate for that are you okay with that >> i agree it does seem we are dragging our feet on the delisting of the companies as carson describes. i think it is important we

protect americans from these they are often goosed in the morning. one right now is chinese steel companies. it is a travesty >> okay. then bringing it home, how was united health care morgan stanley. >> i think travel trust owns it. they are good. i kind of like just good the smoke clears and they are just good. most want to sell to bring the register i think it is a mistake. it is a really good one. >> would you look at the netflix

news and would you at least factor that in and does it have nothing to do why you buy gamestop >> we don't know what ryan's plan is we can't really tell because it has been opaque the meme people need more cash they better reach in and get more nonmargin money i hope they don't use the child tax credit to keep up game stop. thank you. >> thanks, joe we'll talk now about a negative report of spruce point driving

shares of oat milk maker oatly stock down below $20 the report stating they've overstated and engaged in so-called green washing. we reached out and received this statement in response. the company saying that they are aware a short seller is making what they say are false and misleading claims. the short seller stands to benefit from the decline of the price. oatly rejects all these false claims and stands behind all the activities and financial reporting. joining us now to talk about all of it is the company's founder and chief investment officer, good morning to you, ben >> you through the kitchen sink at this company.

there are so many different issues the one that caught my eye is that you believe there are phantom sales taking place i want to drill in there and start the conversation what do you believe is the problem? >> it is funny we are talking about the chinese stocks and the lack of in 1996 only provided two years of audited financial statements and it's gone through three auditors in six years we took a very careful look at the revenues what we found is post-ipo the company footnotedthe fact that its production is estimated. well, if the production's estimated how can we get any comfort that the revenue isn't estimated as well, and the company does not give a lot of good quality disclosures about what's driving the revenues. to fuel their growth they've had to give enormous incentives and

discounts to get on shelves. it's brutally competitive and they don't disclose any of this. we find evidence of revenue numbers in the u.s. being misstated. we've talked to former employees knowledgeable about this we have real concerns about what are investors buying here, a company that has nothing proprietary other than oats, water, and cocoa and ingredients. >> i think there's two issues here i want to try to break them apart. there's one which is your allegation just around their sustainability and sort of the marketing claims that to me -- and i don't want to down play that, but that is an issue that will be either dealt with or not, effectively by consumers, the ftc and the like, whether people want to buy the product or not and believe it's sustainable or not. that's one issue the other issue to me, which is actually much more concerning if true and i recognize it's just an allegation here, is about the numbers unto themselves. you've made an argument around market share, for example, so

explain what you mean by what you think i'm suggesting or what i think you're suggesting is that there's effectively false numbers based on what you're seeing in terms of market share. >> well, i think it's irrefutable that they've lost market share in sweden that's their home market we have data on that we know that the company stopped disclosing their market share numbers in their foreign swedish filings. what i think investors don't realize and what we're seeing evidence of now that they're public is we believe they're starting to lose market share here in the u.s. and the u.s. is a big part of their growth story. it doesn't take a lot of work to do channel checks, to go into supermarkets, to go into cafes that they're losing shelf space because they can't supply the market and competitors, they're not going to sit around and wait they're discounting prices heavily to gain share. you can also look online go to amazon i encourage you to go to

walmart, to albertson's, go to kroger's we've been tracking this we've been seeing they've been losing promotional share on the website. i think that's part of the story that people don't realize, that this is a busted ipo, and it's still trading above its ipo price at 17. >> and what do you think is the fair market value for this company? >> i mean, look, blackstone invested at a $2 billion valuation a year ago all the fundamentals have gone negative ever since. let's talk about commodity prices you know, we're talking a lot about inflation. this is an oatmeal company their biggest driver are oats which are up 30% year-to-date well above where they were when they ipo'd they use rapeseed oil, that's up 30%. >> ben, this is where i think some of the allegations you're making are getting confused. there's an issue here, which is you can make an argument about

the fundamentals of the company. you can say commodity costs are going up you don't believe the company is sustainable, consumers aren't going to believe that, and then come up with a valuation issue there, and you might argue that the stock isn't worth what it is today. i understand the argument, the other is that effectively you are alleging that these people are doing something arguably illegal by effectively either falsifying or providing misleading statements to the public about what's actually happening at the company and the reason i keep going back to these two issues is they are different. >> okay. so let me be crystal clear on this point i believe that they are misleading the public about their gross margins, okay? their gross margins are not in conformance with industry practices. look at beyond meat, they also disclosed that their shipping costs are not in cost of goods sold and sg&a. oatly does not disclose that their gross margins are not comparable to peers. what does that lead me to conclude if you do some analysis, we

think their gross margins are 640 basis points overstated. so you have to normalize these financials to get an apples to apples valuation here. and oatly is trading at a valuation above beyond meat with an inferior, more narrow product line that makes less money, so why would i put a higher valuation on oatly than beyond meat you're asking me what i think the stock is worth, it's worth less than 10 bucks. >> final question, you mentioned blackstone, they were a major investor in this company do you believe that they were deceived, if in fact, you believe these allegations are true, or do you believe that they know them to be false and they effectively deceived the public >> oh, i can't presume to know what black stone knows we do our own due diligence on the public information we've assembled. i assume they've done their own due diligence. there's no way can presume what they know or don't know. >> ben, the reason i'm asking the question is if you happen to be right -- and we don't know at

the moment, but if you're right, this would be a major black eye not just for oatly in truth, but for blackstone because this has been one of the more iconic companies, jonathan gray has put his name effectively behind this company. >> i don't know what you mean by iconic i mean, this is a basic oatmeal company. look, there's a lot of money splashing around the system, it has to find a place to go. oatly is one of those inflated bubble stocks. all bubbles normalize. we're making a bet this is going to normalize it's fundamental and the truth will come to the surface >> okay. ben, thank you for joining us this morning it's great to be able to speak to you and get all these questions answered and we'll see whether the market speaks or perhaps whether the regulators speak. looking forward to seeing you again very, very soon. when we come back on the other side oth bakf isre, we're going to get you primed for the

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let's get a final check on the marketings futures this morning under some pressure, dow down by 170, the s&p down by 14, and the nasdaq keeps kind of hanging in there,

bouncing right about the flat line we've been watching treasuries too. >> jordan spieth, go jordan, jordan 5 under leading the tournament, leading the open right now, one of the early favorites and an american. >> an american that does it for us today, we will see you right back here tomorrow, right now it's time for "squawk on the street. bye bye. good thursday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber markets will get another chance to react to fed chair powell when he appears before senate banking in about a half an hour. jobless claims at a new post-covid low cathie wood agreeing with fed chair powell that the surge in prices will be temporary why she says we are in a, quote,