everyone is wondering when will the assets sell off? at some point we'll have a real sell off risk assets. >> we're up against a hard stop, mike thank you for your perspective, as always. make sure to join us tomorrow "squawk on the street" begins right now. a live look at statutary hall, where the president and vice president will deliver remarkses on this first an verse rid of the capitol attack. there's modestgains, but the nasdaq does look to resume some selling. more -- crypto crumbling as well as you just heard.

the covid risks continue the white house does confirm some talks of ongoing stimulus for, say, restaurants, but the market is strong jim has been pretty vocal about being patient here >> had there been a big opening, i would have thought, darn, that will bring in sellers, but instead a continuation of the nasdaq going down. what everyone is concerned about a too hot number, it becomes less of an issue it's time to look. i put some -- i do that memo about what i'm looking at that goes to club members i'm seeing a lot of stocks there. that will cut in half. we're getting a lot of price cuts, because that again is a

sign of bottoming, not topping so i'm looking. >> the fed minutes have been chewed over at this point. >> yeah. >> if they're serious about quantitative tightening, how do the yearend targets survive? >> that will be hard larry williams said, you'll still get a bounce mabel powell accomplished what he wanted. it's just minutes, remember, not act actions. the economy will take a hit,

while the retail downgrades and cuts come from the prospects that that's going to go away so i don't know, i'm more sanguine than going into the year we'll get some of the calls. do you think the earnings come to the rescue over the next few days >> we have to watch conagra, constellation, guests today on "mad money." they are, for the most part, representative of things bed bath is a meme stock then you have conagra, which is high in the defenses, and constellation, which is high multiple so i think they'll tell the tale now, some of these guys have

never been, but when bed bath hit a speed bump, triton said, i want to come on. >> bed bath has been a bit of a puzzle so far this morning gross margins were okay, but the q4 outlook was soft. >> yesterday there was another drop down, but the think the balance sheet is good. i question how much buy buy baby is worth versus the market cap tritton, let's say, compare to ryan cohen, the so-called savior of gamestop, we find other than the emoji of the ice cream cone, we're waiting for the game plan. >> we're still talking about it, almost a year later. >> it's the year anniversary of

something very harsh, which i think we should take seriously when we're talking about gamestop and amc, it looked like it would be the beginning of involvement of stocks with younger people check out the peak, and they just devolved into dogecoin. he talks about serious crypto. >> we mentioned the 7% decline in bitcoin and ether just this week you think there's more pain to go here? >> i was thinking about getting back into the ethereum i sold. one of the things i play with. something we can trade i won a lot of ethereum last career

, and then i went back in and bought ethereum when "time" was making pay for nfts, that's another solid area, i kind of forgot about it, and then i'm getting back. you are. >> yes, i am. technicians at fund strap were saying, at least no bitcoin, you have to get back to some 39k levels, september 2021 lows >> well, that could happen but my instinct is to buy. i do want to point out everything about novogratz' appearance was brilliant, but i was watching his sweater. >> and he didn't have the galaxy backdrop >> but he's a thoughtful good man, and part of the reason i bought crypto.

he's so smart, and that's why i bought it. >> meanwhile, we're keeping an eye on the pandemic. the white house says it's in constant discussions when it comes to stimulus finding. press secretary jen psaki did cite lower unemployment rate, better vaccinations, though the consensus for tomorrow's jobs numbers is 400-some. >> one of the things i hope happens is there there's a lot of people who have relatives and they don't want to get them sick, so they don't go in. if everybody gets omicron and we burn through this, you no longer will be fearful of getting someone sick the people i know who are vax

fl nated and sick, they have to take a test to foe they're contain edge >> there were no signs whatsoever i think that the cdc gme, amc -- >> page one of the times this morning is all about communication stumbles at the cdc. by the way, you saw the vice president beginning to speak statutary hall, and we'll take it live when the president begins to speak. >> it's a projection for omicron speaking bull case is one to two weeks. >> we have to burn through some states that's just premature. that said, everybody gets is. >> we're at a point on a

personal level of our staff here, where most of us have had it and are back at work. >> there are some people i can't believe that haven't caught it yet. literally i'm going to an eagles game this weekend. that could be a 67,000 super-spreader event i'm waiting for a super-spreader event indoors. i mean, now you pretty much expect you are probably going to get it if you go out, and i think that the cdc made it so that the chances -- the odds are really great when they went from 10 to 5, because stages 5, 6 and 7 are very infectious days. >> you pointed out that's why the nfl has trouble keeping a lid on it. >> the eagles, it doesn't matter whether they play the bucs or

the raiders, but they had a massive outbreak after a win someone said that's when they don't care about who play this is weekend no, they have covid. carson went and kirk cousins got covid, no offense to frank who got covid early on, but if there was a betting line on how many people get covid, it's changed dramatically dr. gottlieb said one out of four people died in america, that's incredibly bad odds with omicron, it's going to be so hard to get who people the cdc have sanctioned to give it to you. >> essentially that's essentially why mayor adams of new york city said maybe the city starts to think about getting back to the office maybe three days a week to start. here's what he said.

>> let's start out with a three-day week to let people see how safe it is to come back to work, then we cycle back into a five-day week, we could do it within a three-week period. >> simon property was one of the best s&pers last year. >> jamie salter, he is really, really smart i put in my memo some of the brands he has. when i start seeing really smart business people pull their ipos, that's very good that says, wait a second, maybe we could get out of the era where you and i have to sit here and watch three lousy people go public, thinking wow, we're toast. >> by the way, it reminds me of the goldman downgrade.

the transition away from capital markets is a multiyear event you talked about how chief evaluation is. >> six times earnings. i don't think you can peloton-ize it every time i think that's the peak in goldman, i remember probably in 1984 when i was there, 70% came from capital markets. there was a huge amount of money being made the applecart, was that a good idea or bad? time to close. >> time to close marcus? turn tail on marcus? >> spin it off >> goldman sachs, they've had a

major downscale movement it doesn't help define the situation. nots that i want to necessarily buy schwab or ebay -- they may be able to do great loading doing artificial intelligence, but so can everybody else. i want goldman to be -- look, i've said to them, listen, guys, you have to define yourself. who are you? who are you? i don't know if they know who they are. >> goldman named jpm and morgan sta stanley, finally paying off. >> what you just told me is all the stuff i want from a bank goldman will quickly say, listen, a huge business.

well, spell it out tell me about it goldman has to stop -- i'm saying how people feel about goldman. they says i want jpmorgan, bank of america, i want rate sensitivity. that would also show that goldman's earnings are not episodic now, they may say the government won't let us, but put out a schedule of what they would do wells fargo is doing better. wells fargo. axios with a piece out today on buy now, pay later, putting affirm on notice, we have had to see more good data. >> paypal is bigger than affirm or buy now/pay letater

max says we need to see the losses these are not black boxes. they will tell us. good to be back lloyd, not unlike the overlook hotel, critical scenes in "the shining. but the applecart, it's like fight club, they do this apple card, which, by the way, a lot of -- is it good is it bad? what does it do? i don't know you can't do that anymore. i'll take capital one. >> as for financials as a sector, and energy as well some are arguing the reason you would expect a leg lower is those two sectors are facing a resistance

>> i think that's wrong. the mobiles are very low, but more important, the discipline these companies are showing, their capital budget isn't safe. i cannot believe they're not spending like yahoos we'll take a break from the conversation and listen to the president. >> madam vice president, fellow americans, to state the obvious, one year ago today in this sacred place, democracy was attacked simply attacked. the will of the people was under assault. our constitution faceded gravest of threats, outnumbered in the face of a brutal attack, the capitol police, d.c. metropolitan police department, national guard other brave law enforcement officials saved the rule of law.

our democracy held we the people endured. we the people prevailed. for the first time in our history, the president had not just lost an election. he tried to prevent the peaceful transfer of power as a violent mob reached the capitol, but they failed. they failed. on this day of remembrance, we must make sure such an attack never, never happens again i'm speaking to you today from statutary hall this is where the house of representatives met for 50 years in the decades leading up to the civil war. it's on this floor where a young congressman from illinois, a

lincoln sat. there's a sculpture depicting cleo, the muse of history. in her hands, an open book in which she records the events taking place in this chamber below. she stood watch over this hall one year ago today, as she has for more than 200 years. she recorded what took place, the real history, the real facts, the real truth. the facts and the truth that vice president harris just shared, and that you and i and the whole world saw with our own eyes the bible tell us, you shall know the truth, and the truth shall make us free we shall know the truth. here is the od's truth about

january 6th, 2021. close your eyes. go back to that day. what do you see? rioters rampaging, waging for the first time in this capitol, the confederate flag that symbolized the cause to destroy america. even during the civil war, that never, never happened. it happened here in 2021 what else do you see a mob breaking windows, kicking in doors, breaching the capitol. the flag poles being used as spears a crow that professes their love for law enforcement assaulted their police officers, dragged them, sprayed them, stomped on

them over 140 police officers were injured. we all heard the police officers who were there that day testify to what happened one officer calledit, quote, a medieval battle. he was more afraid that day than he was fighting the war in iraq. they have repeatedly asked since that day, how dare anyone, anyone diminish, belittle or deny the hell that they were put through? we saw with our own eyes rioters menace these has, threatening the life of the speaker of the house. literally electing gallows to hang the vice president of the united states of america what did we not see? we didn't see a form ever president who had just rallied the mob to attack, sitting in the private dining room off the

oval office in the white house, watching it all on television and doing nothing for hours. police were assaulted, lives were at risk, the nation's capitol under siege. this wasn't a group of tourists. this was an armed insurrection not one looking to uphold the will of the people they were looking to deny the will of the people they they weren't looking to uphold a free election. they were looking to overturn one. they weren't look to go save america. they were looking for subvert the constitution this isn't about being bogged down in the past this is about making sure the past isn't buried. that's the only way forward. that's what great nations do

they don't bury the truth. they face up to it it sounds lie hyperbole, but it's the truth they face up to it we are a great nation. my fellow americans, in life there's truth. tragically there are lies, lies conceived and spread for profit and power. we must be absolutely clear about what is true and what is a lie. here's the truth -- the former president of the united states of america has created and spread a web of lies about the 2020 election. he's done so because he values power over principle, because he sees his own interest as more important than his country's interest, than america's

interest, and because his bruised ego matters more to him than our constitution. he can't accept he lost even though that is what 93 united states senators, his own attorney general, his own vice president, governors and state officials in every battleground state have all said he lost. that's what 81 million of you did as you voted for a new way forward. there's been no president in the history of this country, he refused to accept the results of an election and the will ofof te american people. some courageous people are trying to hold up again it, too many others are transforming that party into something else they seem no longer to want to be the party of lincoln,

eisenhower, reagan, the bushes but whatever my other disagreements are with reps who support the rule of law and not the rule of the single man, i will always seek to work together with them to find shared solutions where possible. we have a shared belief in a democracy that anything is possible anything so at this moment we must decide what kind of nation are we going to be? are we going to be a nation that accepts political violence as a norm are we going to be a nation where we allow partisan election officials to overturn the legally expressed will of the people will we be a nation that lives not by the light of the truth, but in the shadow of lies? we cannot allow ourselves to be

that kind of nation. the way forward is to recognize the truth and to live by it. the big lie being told by the former president and many republicans who fear hi wrath, is that the insurrection in this country actually took place on election day, november 3rd, 2020 think about that is that what you thought is that what the tyou thought wn you voted that day taking part of an insurrection or did you think you were carrying out your highest duty as a citizen and voting? former presidential supporters are trying to rewrite history. they want you to see election day as the day of insurrection the riot took place here on january 6th as a true expression of the people. can you think of a more twisted

way to look at this country, to look at some eric? ame america? i cannot more of you voted in that election than ever voted all of american history. over 150 million americans went to the polls and voted that day in a pandemic. some at great risk to their lives. they should be applauded, not attacked right now new laws are being written, not to protect the vote, but to deny it not only to suppress the vote, but subvert it not to strengthen and protect our democracy, but because the former president lost, instead of looking at election results

of 2020 and say they need new ideas, better ideas to win more votes, the former president and hissupporters have decided the only way for them to win is to suppress your vote and subvert our elections. it's wrong it's undemocratic, and frankly it's un-american the second big lie being told by the former president's supporters is the results of the election of 2020 can't be trusted. the truth is no election in american history has been more closely scrutinized or more carefully counted. every legal challenge questions the results, and every court in this country that could have been made was made and was rej rejected, often rejected by

republican-appointed judges, including judges appointed by the former president himself from state courts to the united states supreme court recounts were undertaken in state after state. georgia counted its results three times, with one recount by hand phoneius partisan audits were undertaken, long after the election in some states s none changed the results. and the irony is some margin of victories grew so let's speak plainly even before the first ballot was cast, the former president was preemptively sowing doubt about the election results he built his lie over months it wasn't based on facts he was just looking for an

excuse, apretext to cover for the truth. he's not just the former president. he's a defeated former president, defeated by a margin of over 7 million of your votes in a full and free election. there's simply zero proof the election results were inaccurate in fact, in every venue, where evidence had to be produced, an oath to tell the truth had to be taken, the former president failed to make his case. just think about this. the former president's supporters have never explained how they accept as accurate the other election results that took place on november 3rd, elections for governors, united states senate, house of representatives, elections which they closed the gap in the

house. they challenged none of that the president's name was first, then we went down the line governors, senators, house of representatives, somehow those results are accurate on the same ballot, but the presidential race was flawed? on the same ballot the same day, cast by the same voters, the only difference, the former president didn't lose those races. he just lost the one that was his own. finally, the third big lie being told by the former president and his supporters, the mob that chose to force their will by violence, is that what you thought? ransacking the capitol,

destroying, literally defecating in the hallways? rifling thus desks of members of house of representatives hunting down members of congress patriots not in my view to me the true patriots of the more than 150 american who peacefully expressed their vote at the ballot box, the election workers to protected the integrity of the vote. the heroes who defended this capitol. you can't love your country only when you win you can't obey the law only when it's convenient. you can't be patriotic when you embrace a-- those that incited and those who called on them to do so held a dagger at the throat of america and american democracy. they didn't come out of hire out

of patriotism or principle they camehere in rage. not in service of america, but rather in service of one man those who incited the mob, the real plotters who were desperate to deny the certification of this election, defy the will of the voters, but their plot was foiled congress stayed, senators, representatives, staff, they finished their work the constitution demanded. they honored their oath to defend the constitution against all enemies foreign an domestic look, folks, now it's up to all of us, to we the people, to stand for the rule of law, to pre preserve, to keep the promise of

america alive. the promises at risk, targeted by the forces that value brute strength over the sanctity of democracy, fear over hope, personal gain over public good make no mistake about it, we're living at an inflection point in history, both at loam and abroad we're engaged anew in a struggle of democracy over autocracy, with the aspirations of the many over the greed of the few, the right to self-determination than self-seeking autocrat. from china to russia and beyond, they're betting that democracy's days are numbers they actually told me that democracy is too slow, too bogged down by division to

succeed in today's rapidly changing, complicated world, and they're betting america will become more like them and less like us. they're betting america is a place for the autocrat, a dictator, a strong man i do not believe that. that is not who we are that's not who we have ever been that's not who we should ever, ever be. our founding fathers, as imperfect as they were, set in motion an experiment that changed the world, literally changed the world. here in america the people would rule power would be transferred peacefully, never at the tip of a speer oar or the barrel of a again. they committed to paper an idea,

an idea that couldn't be constrained. yes, in america all people are created equal. we recorrect the view that if you succeed, i fail. if you get ahead, i fall behind. if i hold you down, i somehow lift myself up the former president who lies about this election and the mob that attacked this capitol could not be further away from the core of american values. they want to rule or they will ruin ruin what our country for at lexington and concord, gettysburg, omaha beach, seneca falls, selma, alabama. and what were we fighting for? the right to vote. the right to governorselves.

the right to determine our own destiny. with rights come responsibilities responsibilities to see each other as neighbors maybe we disagree. responsibility to accept defeat, then get back in the arena and try again the next time to make your case. responsibility to see that america is an idea, an idea that requires vigilant stewardship. as we stand here today, one year since january 6th, 12021, the lie that is drove the anger and madness we saw in this place, they have not bated. we have to be resolute in our

right to vote and that that vote counted. some have already made the ultimate sacrifice in this sacred effort. jill and i have -- once to honor officer sicknick, who lost his life the day after the attack. the second to honor officer billy evans, who lost his life as well. you think about the others who lost their lives and injured, everyone living with the trauma of that day, those defending this capitol, to members of congress of both parties and their staffs, to reporters, cafeteria workers, custodial workers and their families don't kid yourself the pain and scars from that day run deep i've said it many times and it's

no more true or real when we think about the events of january 6th -- we are in a battle for the soul of america a battle, by the grace of god and the goodness and the greatness of this nation, we will win believe me, i know how difficult democracy is i'm crystal clear about the threats that america faces, but i also know that our darkest days can lead to light and hope, from the death and destruction as the vice president referenced in pearl harbor, can triumph over the forces of -- from the bloody sunday came historic voting rights for this nation. so now let's step up, write the

next chapter in american history, where january 6th marks not the end of democracy, but the beginning of a renaissance of liberty and fair play i did not seek this fight brought to this capitol one year ago today, but i will not shrink from it either i will stand in this breach. i will defend this nation. i will allow no one to place a dagger at the throat of democracy. we will make sure the will of the people is heard, that the ballot prevails, not violence, that the authority of this nation will always be peacefully transferred. i believe the power of the presidency and the purposes to unite this nation, not to divide it to lift us up, not tear us apart. it's about us, not about me.

deep in the heart of america burns the flame from almost 250 years ago of liberty, freedom and equality this is not a land of kings or autocrats. here in america the people rule through the ballot and their will prevails. so let us remember, together we are one nation, under god, indivisible. that today, tomorrow and forever at our best, we are the united states of america. god bless you all. may god protect our troops, and may god bless those who stands watch over our democracy

that is the president, a targeted speech placing squarely on donald trump for the january 6th attack, built his lies for months, tried to prevent the transfer of power, and adding to make sure it's not what the past is buried. let's bring in kayla tausche reflexes on that speech? >> reporter: it was a forceful condemnation of the events of january 6th, 2021, the misinformation proliferating after that, and some of the installations happening at the state level, especially in republican-led states, that he says could undermine the rule of law and the peaceful transfer of power going forward. he honored the litch lost, and of course the capitol police have been going through a difficult tie, with 135

defections, and trying to staff up for increasing security threats for lawmakers, in the wake of the insurrection he also invoked some of the information that the select committee investigating the events of january 6th have obtained, specifically testimony that former presumption was sitting in the state dining room watching the events unfolding, and according to his former press secretary, suggesting he was do so gleefully, and praising the people fighting for him. heic voked the information about the select committee, 350 witnesses, 52 subpoenas issues, and at least two criminal referrals to the justice department the president reaffirmed his confidence in the voting systems going forward, but stop short of prescribing any policy path going forward. the white house says he will do that in the coming months to lay out exactly how he and the democratic party plan to pursue

voting rights legislation, which they're working on behind the scenes, and he said the day should serve as a resident sawn for american democracy, even as allies and adversaries had brought up the event with top cabinet officials, but the president himself raising questions for what it means for the future of america democracy. the commission comes on the heels of the attorney general's speech yet, updating us on the doj's very i'm reminded of semis ray dalio said a couple days ago, it's entirely possible that neither side will accept losing the 2024 election i'm not trying to draw a line directly to the market, but how much of this acts as a

suppressant on market activity >> i don't think it's hit yesterday. i do think that commerce -- the ceos have been steady. i knowthere's some dispute about how people feel like that, but business has been the greatest source for social change i never hear anyone that didn't agree with george w. bush, president eisenhower, president lincoln, by the way, these are the foremost gop presidents, that this was wrong. i don't hear anyone ever say it. these are leaders who have many people who work for them, and i give them ample material to talk about the opportunity, that maybe it represented something positive i just want to know, and it so roundly condemned, while ray

dalio could be right, the business community stands with america, with a republican derived america, when i think about president lincoln, it is heartbreaking to to see the conphet rad flag there are some people who think that aspect should rise again. you go into the biography of grant or lincoln, you realize that's what they were fighting against. i wish there was a civics class where people realized we did have good guys and bad guise to unite yourself with the historic bad guys is something that's very ill-advised. i didn't take that class -- people don't know how i vote, will you i think i may surprise people, but i vote american. i know that there will be people who resent that.

i just have to tell them that they are sorely ill-advised. we are one country, and the people who have been leaders, carl, are ceos not the congress people, the ceos. >> i'm thinking of the business roundtable today -- we reiteration the strong condemnation of the falsehood of an illegitimate election that's the business roundtable, one of the biggest business lobbies in the country there may be some ceos other than mypillow's ceo, i haven't come across them >> it's a tragic anniversary it is tragic do you think you'll get heat because you call it a tragedy? >> who knows i think you have to move forward. there will be an element that's unreachable. >> president eisenhower is one of the greatest presidents in

history, was a great uniter. look, i don't think you realize how dawn russ it was, even in 1944, to storm the continent of europe i find myself agrees with eisenhower and pretty much everything he did. he would be so diat metrically opposed to what happened, it's shocking eisenhower is not that long ago. >> jim, we'll put a coda on it conversation as something to continue to watch. back to today's action, a lot of information on the way. and it sounds like you'll talk more about corporate earnings tonight. >> yeah. i mean, looks, constellation later today, conagra on tonight, bed bath and beyond was typically a case that people

shorted, but i'm watching the nasdaq line everyone else. i haves i was talk to go a ceo very, very earl counter this morning at 3:00 a.m., and there's a lot of disbelief when you have stocks down 100 points, 200 points, you look and then, and say, should they be down 200.? the stocks did trade, but the ones i put in my memo, did they really do that badly if interest rates tick down, oh, my, people will be scrambling for these stories. i know you're watching the megacaps, of course, but even names like crowdstrike, managing decline of about 1.5%. netflix, though?

set target guts at stifel, interesting. >> i look at that and say, that stock traded 700, then went to 478. i have so many people so-called my on "mad money", it's 688, what do i do now it's at 551. they don't care about where it's coming from, but where it's going to we have a lot of folks that have come down, we act as if it's day four of a sell-off very nice people, but the stock was at 122 people are saying 32, time to skee dadle i am not recommending peloton, all right?

but peloton is now at 32 i always like to look at they stocks and say, if you're suddenly afraid of peloton, i think you've just been run over by a stationary bike that's very hard to do multiple compression, attractive entry point. >> that is where i am. i look at etsy, 307, traded at 153, now at 185. look, should it have been at 185? it has earnings and may have acceleration earnings. a lot of stocks that sell at 50 times earnings, those stocks were blasted yesterday and go to 48 times earnings. i know they're expensive, but we have to recognize, carl, the stocks that are never cheap. nvidia i've been following nvidia since i found out the they're the main reason ali is doing well they gave a presentation people didn't pay attention to what they're doing in gaming is predominant.

one of the greatest cfos in the world gave a bullish presentation at jpmorgan, stock 346, down to 270 no one is ever in nvidia, because yesterday it was really expensive. well i don't know. do you see you're never going to buy jensen long it's always expensive. i urge people to buy a little. don't do it at once but recognize there's stocks that are never cheap and the only reason why they're down is because of interest rates and that interest rates don't necessarily go up forever. >> right. >> couple really quick names one is target and dollar general. wells cuts them to equal weight. they're talking about some retailers that benefitted from covid are going to face tougher comps on stimulus as we get past those. target has done incredibly well over the past year costco another monthly deceleration in comps. >> costco. that was a monster quarter

hearing aids are -- that's their highest margin they're doing well the food court they do well. costco is a wonder my contacts at the company, like i was like how, how do you do it someone finds fault with that. target is interesting. and this is a little -- let me get etherial for a second. when the -- when george floyd when he was murdered there were several targets that were trashed and i had brian cornell come and speak at a corporate governance, and he was saying how people linked arms in brooklyn saying please don't hurt my target i think target stands for something. it stands for a great, inexpensive place to shop. is that something that ended with the pandemic? i'm not going there. now dollar general, conceivably, their customer base could be hurt badly by the decline, by theend of some support, but remember that stock is not one that i would recommend the high was 239

it's at 23 1 those furious that i took a picture of a dollar general that had many aisles open saying, jim, didn't you know it was switching to valentine's day, i say to this, you got four days after christmas to switch to valentine's day and i have been in retail -- my father sold gabber dean pants at gimbels and believe me, there was no vacancy in inventory when he was selling trousers >> yes. >> you did get some attention on that tweet. >> i mean, come on look, dollar general had signs all over help wanted they shouldn't have opened the stores a new store, but dollar general stock is up big, $53 billion. other bargains people who criticized me on twitter, they should watch tomorrow's show where i'm going to fix twitter. >> you've been teasing that and i can't wait to hear what you have in store. >> that's going to be -- >> i love the management at twitter, but i got a -- i have to fix them. but i say i love them. this is not my usual like nice guy praise i think that siegel is

unbelievable and going to be jotting things down and take action. s&p and nasdaq are trying to hold the flat line to bob pisani. good morning, bob. >> good morning. nice start two to one advancing declining stocks and the cyclical sectors we care about, take a look here. energy stocks, bank stocks, doing well, and tech is generally holding up very well some of the tech stuff weaker. consumer staples and health care lagging a little bit here. want to look at the tech sector, cathie wood's arc funds up fractionally at the open least lithium, social media, cloud computing stocks, generally flat what is moving the market right now, particularly those thematic tech stocks, the cathie wood stocks, and remember, there's three things that move the stock market one is dividend growth, two is earnings growth or lack of earnings growth, and the third is the market multiple, the p/e

ratio, how much are you willing to spend for a dollar of future earnings at the present moment now if you take a look at some of these thematic tech stocks we can see clearly that what's moving them is multiple compression. that's what's going on look at these just prior to the open this week, roku, block, zillow, zoom video, these are big -- zillow, sorry, these are big thematic tech stocks and you can see all of them down notably. this is prior to the open. look at the multiple compression. i'll show you why that's what's going on here. look at square, for example. the p/e ratio on square at the end of the year was 90s, and it dropped yesterday to 80. that's a big drop. that's a p/e compression of about 11.6%. you know what the price change was for block? 11.2%. there it is. it's telling you that it's multiple compression, people aren't willing to spend as much for that future dollar of earnings as they were in the beginning or at the end of the year look at roku

it's the same story. roku had a multiple of 134 that was rich at the end of the year yesterday at the close it was 117. that was a decline as you can see here of about 13%. how much was the price down in that same period 13.8%. you see that's multiple compression. take a look at zillow. i'll give you one last one here. zillow was 83 at the -- i'm is sorry zoom video, zoom was 42. went down to 39. that's a drop of about 4.9%. the price was down 4.9%. that's multiple compression. by the way, i'm not even including companies like twilio and doordash and peloton, they don't make any money and got hit more it's clearly indicating that market is concerned about the prices that people were paying i've said this many times, carl, cathie wood didn't lose the argument, cathie wood won the argument that disruptive

technology would be a major driver of future returns the problem is, everyone bought into it and they drove the prices up to stupid levels and now people are reevaluating that in light of higher interest rates. back to you. >> thanks very much. bob pisani jim is going to stick around after the 10:00 a.m. hour begins roger mcnamee will be with us on a rough week for tech and a lot more more don't go away. ♪ ♪ ♪ with a bit more thought we can all do our part to keep plastic out of the ocean. when you're looking for answers, it's good to have help. because the right information, at the

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good thursday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with morgan brennan. jim is sticking around for the top of the hour. faber has the morning off. the s&p reaches 4700, 4689 now dow down 136 as we see a resumption of the selling that was sparked by the fed minutes yesterday, morgan. >> that's right. we're 30 minutes into the trading session. here are three movers that we are watching specifically this morning. we're going to start with walgreens. healthy beat on the top and bottom lines for the latest quarter that was boosted by demand for covid-19 vaccines and testing. shares of the drug store chain are down about 1% right now. however, they are up something

like 25% over the last 12 months plus, bed, bath & beyond shares now surging after initially tumbling premarket the retailer posting a wider than expected quarterly loss and comparable store sales that fell further than wall street forecast nonetheless the shares are spiking up 9.5% right now. finally, au burns, flying higher morgan stanley upgrading the name to overweight from equal weight saying the sneaker maker's valuation is attractive relative to peers. shares up about 8% right now that name, however, is also down sharply since the november debut, down some 50% from that november peak. something we've seen with a lot of those companies that went public in the past year. carl >> meanwhile, morgan, ims services out a moment, 67.6 for december economists looking for a reading of 66.8. we'll be paying attention to the prices paid and the employment components, jim. it's leading up to the data

tomorrow. >> certainly it does matter i think -- i've done a lot of research oefrtsz years, if you want to see over say a 30-year period the most important number that comes out, you could turn off everything other than the number tomorrow. it's important i love the stocks that margaret -- morgan brennan just gave us. morgan brennan, i love that. i call her morgan brennan, brennan morgan, because anyone with two last names -- here's the problem with the stocks she mentioned -- they're not bottoming. right, morgan. >> they're having trouble bottoming. the reason they're having trouble bottoming is not because of how they're doing it's because of the bond page. it's nothing to do with how they're doing. the classic one, morgan, microsoft. that company had the best quarter of all of the mega techs. can't bottom can't bottom you cannot take action and make -- and start buying until that stock bottoms because that had the best single quarter of

any major mega tech. i have to tell you, it really feels to me, morgan, that if you watch that stock crack, say, 300 there are going to be people who leave, no matter what. they're going to leave. >> yeah. i mean i think that's going to be a key thing for our viewers to keep in mind when you share an insight like that, and it speaks to what's been a rotation, a pretty drama rotation, by some measures from some of these tech and growth names into value we've seen headlines over the last 24 hours it's been the greatest rotation, the fastest rotation since something like 1995 and just how dramatic that move we have seen in the bond market i think speaking to what you're talking about it's interesting because fed tightening cycles of the past have been multiyear events and basically what we saw in the minutes yesterday is that over the next six months you will see not only an end to taxpaper,

potential rise to interest rates but the pairing back of the balance sheet too and key to see how the bond market and thus the equity market reacts to that and whether you see a monetary tightening cycle become a financial conditions tightening cycle, speaking to some of the techs, jim. >> spot on all the low multiple stocks are still going higher we have not reached an end to this i actually at this point am just sitting here waiting for when microsoft bottoms because i think we can sit here, morgan, sit here and buy bank of america at 52, not an expensive stock, but if we do not see the rest of the market, including the mega techs go higher, these companies are not big enough to create a rally. you're not going to get a rally by jpmorgan and chevron. it won't work. and the ones -- if you go back to the ones you mentioned at the beginning, i mean how about the fact that you're looking at some

of these companies that just can be listless that go nowhere. we just -- talk about united health i know united health is doing well they're going out to the jpmorgan conference and going to have a great presentation. nobody cares i talked yesterday about eli lilly on the judge's show. eli lilly, unfortunately i have to do a lot of brain work that involves personal problems with my brain that are hopefully solvable but all the people i work at the various brain foundations, they think that lili drug is real. nobody cares because it's too high the people i'm dealing with, i'm talking about nobel prize winners, not because they need to solve my brain, believe me, that's going to be in the smithsonian there's so many things crazy about it, but i see the stocks and say to myself, not yet. not yet. not yet. don't pull the trigger yet wait until microsoft bottoms single best quarter of the mega tocks. >> it was an amazing one talking about it months after the fact

the sell-off is particularly, jim, acute in evs. rivian, lowest since coming public, lucid, nasdaq 100 loser, tesla now trying to hold a thousand here, at 1035. >> well, we all got some distortion when we came in that. we had the great tesla number. there is a giant lockup expiration in lucid. amazon is not totally wedded to rivian we know that these ev stocks are -- you get a feel when you look at cathie wood's stuff. cathie wood is saying i'm not a hedge fund, you can't shoot against me when you sell the stocks it can rebalance the situation. ar, you saw the ark. she's uniquely at ground zero at this and a fine stock picker but her stocks define what's wrong right now. >> coming off the worst day for arc since september of 2020. she would tell us a lot of these technologies, the battery storage and the a.i. and robotics are long-term plays,

right, that are deflationary and are going to protect us in a sense from the so-called hyper inflation concerns over the long term. >> i run a travel trust, which i play totally with an open hand with the investment club, and i would be ashamed if i said that. ashamed. i would be ashamed because i'm so wrong like i admitted to shame for buying wynn. paypal just tremendous mistakes. >> you think cathy must come on -- >> you must own your mistakes. that's what the real people do when i came on yesterday on scott wapner's show and say i cannot believe i was foolish enough to own wynn he said who saw omicron. doesn't matter i'm wrong. there's no wait a second i'm early. that's not what the pros do. when we see these stocks down, we cannot say to ourselves, you know what, i am early in wynn, stick with me! stick with me.

promise land not far, 40 years in desert, only one guy gets there. >> early. >> i mean, it's -- it's a notable point. i am curious, jim, in years past it's paid for investors to park it in etfs and be invested in the broader averages and back to pint you were making earlier, is this finally the year? i feel like we say that at the beginning of every year where it's a stock picker's market because of the conversation we're having and because of the fact that the major averages are so tilted towards these mega caps tech companies that until microsoft bottoms to your point are probably going to continue to keep falling? >> i think we all have to -- great point. we have to figure out what to make for our contributions my 401(k) contribution waiting for the market to go down more, but sticking with the s&p, because i'm not doing individual stocks but because that historically is what you do. i think if you're "mad money" so to speak, want to take a stab at

nvidia, after nvidia tries -- you can tell when the sellers are done, you can do it. one thing i don't ever want to do is discourage people from taking a long-term view on the indices. my problem is, is that cathie wood is taking a long-term view about things that are being crushed. what would be much better to say what i said yesterday about wynn which is, i am wrong right now i hope to be right but hope should not be part of the equation it's much better paypal yesterday, talking with john, he likes the it at 191. i said i don't think it can hold that level i thought i could buy that -- i didn't buy it at 300, i thought i could buy it down at 200 that's called wrong. and what people have to do when they come on, they have to say to themselves, you know what, i've been wrong on what i like about the judge's show is you don't go on scott wapner's show say you've been right when you've been wrong he won't let you get away with it you can't say you're in the playoffs when you have a losing

record >> jim, watching the vix behind you, below 21, nowhere near where we were the depths of december that is a reflection of the fact that these minutes, although they read hawkish, don't come as a complete surprise? >> yes i was speaking to great hedge fund manager who is just brilliant, i learned at the feet of him, and he said listen, what happens if they start talking about sucking liquidity out. i said, that would be horrible here it is in other words, very smart guy who runs billions, and it wasn't like nobody saw it coming, but i think that yeah, the vix would be much higher you know, i got to tell you, when i say i'm waiting, morgan, that's the difference between hating and waiting i'm just hating. i ain't waiting. the time to hate was higher and i think that, therefore, when you look at these stocks, and you say, oh, my, i'm so afraid of getting hurt by paypal, well, you know, you're looking at a

person crushed by paypal already. >> i'm curious about another name bed, bath & beyond and dovetails about what to expect from "mad money" tonight, but the fact that those earnings were so far below street expectations this morning and, of course, they've been hit by supply chain woes and inventory crunches and the like, common theme for so many retailers, but the fact that stock is up almost 10%, jim, we're almost lapping this year anniversary of the meme stock mania and bed, bath & beyond has been lum inspect there -- lumped in there. >> 1.4 billion valuation, no debt the cadence each month was better bye-bye baby not reflected in the valuation. spl split the company up into bye-bye baby, harman and core bed, bath, doesn't want to do that but may be my

recommendation when i interview him. >> we'll see you tonight, jim. >> i'm still stuck -- the president speak, i voted american that day in november and i hope everyone voted november. >> yep quite a speech sort of took -- >> really kind of stunned by it. stunned by that. >> confederate flag rotunda, president grant, president lincoln, great men. >> we'll see you tonight 6:00 p.m. morgan >> all right what a treat to kick off the top of the 10:00 a.m. hour with jim cramer we're going to head to a quick break. a look at our road map for the rest of the hour, including covid testing troubles the surge indemand leading to empty shelves at pharmacies. we'll discuss that. >> crypto crooks, 2021 a record-breaking year for crypto currency thefts with $3 billion stole. tech investor roger mcnamee to

break down the weakness in the nasdaq and responsibility that social media holds in society. dow down 183 the services pmi was 62. it's the lowest number since september. a lot more "squawk on the street" is street ahead.

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losers with the nasdaq suffering its biggest loss in almost a year dominic chu has more on this ongoing tech. >> ongoing the keyword we are seeing a little bit of that move to the downside after what looked like what could be stabilization for some of those names earlier on in the session. if you look at the nasdaq composite overall, there's an interesting point developing with regard to the move we've seen from the record highs that we've seen just recently the nasdaq composite, will put us down 7% to 8% roughly the reason that's important if you go through a couple of the bigger selloffs that we've seen over the last 12 months, we have seen it just around that 7 to 8% range. there's a little bit bigger around 12% earlier on this year at the beginning of this last 12 month period this is a move that could be seen as a place where some investors are getting more cautious but getting their appetites wet with regard to the pullback if you take a look at three of the key parts of the market that a lot of traders are keeping a close eye on right now,

semiconductors, software overall and then cloud computing, on a one-year basis you can see the is semiconductors have outperformed but that white line notably here has not really done that much of a pullback versus you can see with the orange line and the green line, very big pullbacks in software and cloud computing. semiconductors holding up relatively well. we'll see if that trend continues. within the names to watch, the biggest pullbacks within that s&p 500 tech and communications services trade have been in a big name, microsoft, i was listening intently to your conversation with jim cramer earlier in the last block with regard to some of the moves there, you talk about microsoft having a 7% pullback over the last week, alphabet down 5% and meta platform, formerly known as facebook, down 4%, contributing to the tech sell-off microsoft notably is being called jefferies top pick in software for 2022. we'll see if that plays out there. on the crypto side of things,

they've gotten caught up there as well. the move for bitcoin down roughly 37% from the record highs. remember just a hair below 69,000 for per coin what we saw bitcoin at up 20% for the year. ethereum prices now down around 30% or so here so as you take a look at that picture overall it is having rep reverberations through the stocks if you look at names like perhaps coinbase on the exchange side of things, down 3%. did it get an upgrade over at bank of america to a buy rating today. robinhooded market down 6%, micro strategy down 4% and block known as square is down 2% and half a percent gain for paypal some of the stocks we're keeping an eye on with regard to whether or not we see further downside in places like bitcoin and ethereum back over to you. >> dominic chu, thank you. we also want to get to our own steve liesman with more reaction from the fed and what we saw in the minutes yesterday.

hi steve >> hey, good morning morgan. market trying to gape ogain out to remove stimulus, suggesting rate hikes and balance sheet runoff the minutes said, current conditions could warrant a potentially faster pace of policy rate normalization. the hawkish tone led several forecasters to move up their timeline tore when the fed could start reducing the $9 trillion balance sheet and how many rate hikes next year and how soon they could come. bill nelson writing, participants can be divided into two, not three groups. those who want to tighten policy and those who want to tighten policy even faster, with the median being the first group such a distribution would result in upside, not downside risks to policy so a group on the fed from the midwest they're at the center of the new call it the hawkish core here chris waller with st. louis fed president jim bollard's former

research director, the two were among the earliest last fall to talk publicly about balance sheet reduction. cleveland's mester and kansas city george have been among the more hawkish fed members and have the vote this year. among the options for that runoff discussed in the minutes. well pretty good agreement on beginning sooner this time rather than they did last time possibly relying on the runoff more than rate hikes, somewhat want to do that to not flatten the yield curve. reinvesting mortgage backed securities to get into treasures to get the fed out of the mbs business and do it with a cap to the total runoff the fed, first sped up the taper and then forecast multiple rate hikes next year and now it's pushed the balance sheet runoff button sending a signal it's serious about moving a combination at a pretty robust pace this year we don't know, morgan, if it's enough to quiet inflation. >> all right we're going to have to keep an eye on it.

thank you. let's continue the conversation and bring in ed yardenny, raymond james aaron kessler with the major averages lower today. thanks for being with us ed, i am going to start with you, the fact that we do have a little more insight from the minutes, but really speaks to the tightening cycle at the fed and a cycle that is poised to be faster and aggressive than we have seen in cycles past right now through rotation from growth into value does that continue here and if so, what does that mean in terms of the action we're going to see over coming weeks and months in the averages >> morgan, i think much is going to depend on how long this taper tantrum lasts. this is the fourth taper tantrum since 2013 we had one in may 2013, we had one in early 2016 and then one in 2018. the big difference between the fourth one and previous three, is that -- in the fourth one

there is a problem and there's an inflation problem back in the previous three when the stock market had a taper tantrum, the fed could respond to that and say okay, we're going to ease off. we're not seriously going to be tightening as much as we suggested. and that worked out as a buying opportunity. this time around, everybody as steve said is dependent on an unknown which is when inflation might moderate, the extent to which the fed's tapering might actually do that i'm seeing some evidence that the supply chain disruptions are starting to ease a bit saying that in the fed's five surveys of regional businesses, delivery times are starting to come down a bit, i saw that in the ism purchasing managers index, the price paid for manufacturing i didn't see that in the services number this morning the prices paid is still high. but i think we're going to find that inflation tends to moderate

after maybe a month or two of moving a bit higher. but i think that's really the key. if it turns out that the fed just pivoted to an excessive amount the market reacted in an excessive way to the minutes we shouldn't get too excited about the sell-off. >> okay. so aaron, you cover internet stocks do you see buying opportunities now or do the names that you do cover have further to fall >> yeah. our names have been down quite a bit the last couple months here with down about 20 to 30% for a lot of names over the last three months look at the five-year ebitda sales average, about 20% below on the averages per a lot of small cap names in this space. the large caps right now, trading around 23 times our

calendar earning numbers, growing at a high teens rate google and facebook shares up today. we think they're a relative value in this market we think for a lot of names in our sector you've seen pullbacks. alibaba ten times earnings based on some of the parts then you have small cap names, buyers up here, ziprecruiter is nice, plays into the job openings numbers, career real, we think will put up some good numbers and show increasing leverage in the year as well there are selective names on the small cap side we would be buyers of and continue to like google, facebook, amazon, and alibaba as well and think buying is attractive on the pullback. >> ed, bofa trading desk suggested feels like the market might be waiting to see if the fed sends out some messengers to calm markets are we legitimately on watch for that or are they sitting back watching this rather orderly sell-off happen and saying we're doing our job? >> yeah.

i mean, i would be surprised if they send out some messengers to calm us down i mean, look, what's happening here is actually very healthy for the market i mean some of the ridiculously over valued pandemic stocks have corrected significantly and the pandemic isn't going to last forever. that's one of the bullish things here is the markets are signalling that we're going to either live with this pandemic or get through it pretty quickly here that's why the bond yield is up and why some of these pandemic stocks that were highly valued are sinking. but look, semiconductors are doing great. we know the fundamentals for them are fantastic world demand for semiconductors all-time record high so i'm not that pessimistic here i don't need the fed to tell me to calm down. >> aaron, can you give us names that could be potential buying opportunities here if we continue to see rates

rise, have you done any kind of analysis looking at i guess how much we could see how far some of these names could fall based on how high some of those -- how high rates rise here have you looked at that relationship and is there a playbook from previous periods like this? >> i would say we've been covering these names for 20 years, looked at facebook, google, or some of those little less than that, but we've been through several economic cycles some scenarios of rising rates and i would say consistently facebook, google, not that they ignore that, but as long as they have pretty reasonable p/e multiples as we mentioned around 23 times p/e multiples, we think they can do fine in a little bit of a higher rate environment rate goss too high that will be a concern and you worry about economic growth and slowing. but even if rates go up 2, 2.5%, we don't view it as big deals for companies pretty fairly

valued today or attractive such as facebook and google, attractive multiples here. >> all right gentlemen, thank for the conversation ed and aaron >> thank you. >> taking a look at the nasdaq and the s&p both climbing back towards the flat line up ever so slightly in the green, carl. >> morgan, still to come, we'll check in with roger mcnamee talking with social media, and its role on last year's attacks on capitol hill as the nasdaq is rebounding with the overall stocks, but still lowest for the stocks, but still lowest for the nasdaq since october 15.hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire at vanguard, you're more than just an investor, you're an owner with access to financial advice, tools and a personalized plan that helps you build a future for those you love. vanguard.

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welcome back i'm rahel solomon. here is your cnbc news update at this hour. president biden came to the capitol this morning to mark the one-year anniversary of the assault on that building he accused former president donald trump of rallying a mob that tried to overturn a fair and free election. >> the former president of the united states of america has created and spread a web of lies about the 2020 election. he's done so because he values

power over principle, because he sees his own interests as more important than his country's interests, and america's interests, and because his bruised ego matters more to him than our democracy or our constitution he can't accept he lost. even though that's what 93 united states senators, his own attorney general, his own vice president, governors and state officials in every battleground state have all said. he lost. >> meantime violent protests continue in kazakhstan there are reports that soldiers have been firing at people and cars in the country's largest city and that dozens of protesters have been killed. and in western michigan, winds and snow from a strong winter storm disrupted travel overnight. a separate storm is expected to bring snow to parts of the south and northeast through tomorrow it certainly has been cold enough to welcome in wintry

weather, carl. back to you. >> rahel, thank you very much. pharmacies across the country are struggling to match the high demand for at home covid testing as omicron cases surge. abbott one of the largest test makers is beefing up supply targeting production of 70 millionp are prapid tests. here is dr. vijah kumar who covers abt great to have you. i was struck by the white house covid czar yesterday who said that deliveries should begin some time next week and then the bulk of them in the coming weeks. is that a reasonable timeline? >> thank you for having me on. you know, it's, right now, i think the issue is the demand credibility has been off the charts, right, and i think that really is the issue. you could start supplying next week the question is the quantity

there is it enough numbers here to meet the demand and i think that's the big question mark i suspect the answer is no >> yeah. one of the complaints or one of the explanations for why we find ourselves in such a deficit, one argument has been made that the shelf life of the test itself make it difficult to stockpile months in advance. how valid is that? >> that's a reasonable assumption i think the shelf life for an antigen test is 6 to 9 months. it certainly plays a role. but i do think the bigger issue here is demand predictability. i think when you have a 50% swing in demand, quarter on quarter, it's very hard to plan your manufacturing production facilities and i think that's really at the heart of the issue here. >> i'm curious about the accuracy piece of the puzzle

my family had kids over christmas, i had full brown symptoms, two tests negative, it wasn't until i got the pcr test that came back positive. i've been hearing about false positives as well. do we have insights into how accurate some of these at home tests are where omicron is concerned? if the accuracy is spotty, is that going to dent demand? >> no. it's a great question. i think this whole debate, there are several elements to this, right. i think one is the -- these tests are really good as a rule out because of their high spes sifty when you get a negative result you can rely onthem more on the sensitivity, the labels have them somewhere in the 90s, mid 90s sensitivity. i suspect similar to other traditional rapid antigen tests,

sensitivity in the 80s you have a drop off in the ratio, that's true for all antigen tests, rapid antigen tests. the third element here is just because you get something positive, right, what is the clinical value of positive i think is an issue. one could argue for a pcr test, you know, if you're picking up low viral loads, is that clinically relevant as a question there are many angles here, but i think antigen tests the best use case rule out against a positive rule in >> dr. kumar, we'll talk about the shares themselves maybe at a future date. they've clearly come off a bit off of that run the tail end of last year. thanks so much >> thanks, guys. let's hit our etf spotlight as we go to a break. we're looking at consumer

discretionary today. xly. two names moving in the red today, target and dollar general as wells cuts both to equal weight saying that retailers could struggle to replicate some of their pandemic era performance th yr.isea we'll be right back. we'll be right back. stay with us. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

today marks the first anniversary of the january 6th capitol hill attack that led many tech insiders to double down on their calls for social media reform our next guest says he still doubts congress will do anything substantive to change the behavior of internet platforms joining us to discuss, roger mcnamee. good morning i guess i'm not surprised to hear you say that. we've watched hearings come and go, ceo testimony come and go, i've written books have we made no progress snaul. >> no, i think we've made a lot

of progress in understanding the problems, carl, but i think if january 6th showed us anything, it's that in the united states today, you know, we are so dependent on the market to make choices and allocate resources that we've finally run into examples of where the market is no good. right. it has not done a good job of addressing climate change. it's not done a good job of allowing the united states to address a pandemic it's done a horrible job of defending democracy against an insurrection we're at this point now where, you know, a year later, we're looking at an attack on our seat of government with essentially the entire presidential line of succession in the building our response to that to this point has been not terribly inspiring. we're not going after this as though we think this is a big problem. >> i wonder how you think about

the the platforms individually, facebook versus twitter. why do you think the disparity between the two? why has meta outperformed? >> they've got a better business in a world without constraints, which way we live in today, facebook or meta has a business that is unique in the marketplace because it's got 3 billion people on one giant network without any safety nets and without any guardrails the result of that is, that they have built a massive ecosystem that doesn't just include the legitimate businesses, it includes a lot of illegitimate businesses, scams and the like, and it has become fundamental to that kind of dark side of th economy and without any regulatory interference, that's just a great business. they're going to continue to grow by using data to exploit human weakness they've got the formula worked

out. so long as the government doesn't protect the citizenry, it's going to be a great business >> roger, i am curious what you think about the sell-off we have seen in recent days in tech and growth more broadly, including some of these mega cap names, whether that's something that's going to be sustained as the fed goes into this tightening cycle on a more aggressive way potentially, or whether these are names that are just in a sense too big to fail for the market standpoint and given the fact that they do continue to grow so strongly, will have another strong year? >> morgan, i don't really understand how the fed's actions are going to effect the market from here. quite clearly they're a giant cross-section of the market. i would think about private equity in particular, but also the hedge fund business. rates that are about zero have been fundamental to growing the business, and so if rates are going to go up, the fed is going stop buying bad paper and

supporting the private equity market that way, then clearly the level of speculation is going to have to come down so that makes a ton of sense to me but at the same time in the absence of regulation, these people still have great businesses, so i really don't know which way this is going to come down. my expectation is that we're just going to continue going along like this until eventually all of the speculation that's going on and all these different sectors, runs out of new buyers and then it eventually comes tumbling down. when that will be i have no idea. >> although, roger, we spent a lot of our time reflecting on the damage that's already been done to say nonprofitble tech. i'm thinking back to when you and i spoke in the depths of covid in the beginning of 2020 where you were going to t-bills. i don't think your risk tolerance is that sensitive at the moment, is it? >> what i was saying to you, carl, is that everybody's risk tolerance is different and when i look at the market broadly it's pretty obvious that most of

the participants are extremely comfortable with what's going on right now. you know, i look around and i look at china's threat towards taiwan, i look at russia's threat towards the ukraine, like at the breakdown of globalization, the fact that supply chains do not operate as smoothly as they used to and where there's clear conflict between the interests of western countries and say china, and the results of all of that in my mind should be a greater level of caution in the markets. to this point when caution shows up and lasts for three days and people get right back to work. i completely understand that, but eventually that game is going to end >> yeah. certainly being reflected in some red arrows today in the space that you watch always good to check with you, roger. thanks roger mcnamee. >> take care well, it is currently a mixed picture for the major averages the nasdaq is slightly lower, well off the lows of the morning. dow industrials are fractionally

lower as well, dipping lower for the week, but the s&p just above the flat line. the nasdaq 100 and the dow transports also higher right now as well as energy, communication aradhees and financials le t chge we're back in three.

welcome back along with bitcoin's record run in 2021 came a record year in reported crypto currency thefts. eamon javers has more. >> that's right. a whopping $3.2 billion worth of crypto was stole lan years according to the chain firm analysis which has a new report out this morning 516% increasing over the year before in thefts that's a huge number so is this 72% of the stolen funds were taken from so-called gee defy platforms, the services with no central exchange authority

analysis explains because defy is such a fast growing segment of the crypto currency environment, and many developers haven't put into place enough security even as many investors are piling in without doing enough of their own homework on the services themselves. now overall, a stunning $14 billion from all sources including ransomware, terror fitnessing, dark net and others, went to illicit addresses last year according to chain analysis they're able to calculate the total crypto war chest is held by illicit addresses associated krits wh -- criminal activity. the increasing value of the criminal's' crypto assets. the fact that public and law enforcement can see those funds on the blockchain is actually good news. >> sometimes you might think if you've been hacked or a victim of a ransomware attack those funds are gone, but actually, we can see them sitting over there

in that wallet we might be able to see which exchange they go to and then you can freeze the funds. >> now one other piece of good news here, even as the total crypto thefts are increasing dramatically the percentage of overall crypto activity associated with crime is coming down and that's because of the enormous increase in legitimate crypto transactions. as legitimate crypto grows, crime is growing as well but not as big in terms of a proportion of the overall activity. guys, back over to you. >> great reporting, eamon. i'm curious, because you can see where some of those funds have gone on the blockchain, do we actually have the data showing how many of those thefts have actually now been recovered and how quickly? >> we do know that law enforcement is beginning to be able to recover a lot of those thefts we saw some of those cases in 2021 where they actually reached out, reached the exchanges, and got that money back. not all of that has happened and

you see about $10 billion, according to chain analysis, still sitting in the wallets associated with what they call illicit addresses. those are the addresses of entities they suspect of being involved in fraud. >> eamon, appreciate that very much what astory. and what a beat you've got, eamon javers this morning. >> you bet. coming up on "techcheck," the nasdaq, cloud names, names in fintech continue to get pinched as investors worry about potential reduction in liquidity. we'll discuss with dan niles at the top of the hour. we're back to 4709 don't go away.

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dr horton, and some of the suppliers like whirlpool and mo hawk industries for the flooring side of things we'll have more on the state of the housing market after this quick break. but keep an eye on those he om builders and those stocks. stay with us on "squawk on the street." ♪

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welcome back to "squawk on the street." home prices and rents are soaring, but home prices are actually rising faster so is it more affordable to buy or rent? diana olick with answers on that hi, diana. >> hi, morgan. as of now median price singling family homes are less affordable than they have been historically in three quarters of the nation. that's up from 39% of the nation at the end of 2020 it's also the highest share in 13 years but, rents are way up, too especially for single family homes, which are in much higher demand now due to the pandemic renters want more space in the burbs. which is more affordable, own or rent the answer is still owning for now, but the gap is shrinking fast owning the median priced home is more affordable than the average

rent on a three bedroom home in just over half of the country and that's according to a new report from adam so, homeownership expenses consume less of the average salary than monthly rent much of this, of course, is because mortgage rates are so low right now, but they are rising fast. and that's why this scenario may change soon. of course, all realize is local, homeownership is more affordable than renting in suburban and rural areas. but it's cheaper to rent in big cities like in los angeles, chicago, phoenix and san diego. owning a home, though, is more affordable in houston, san antonio, detroit and philadelphia and tampa now, to be clear, this report is about affordability, not about which is the better investment homeownership historically builds wealth but some argue they rather take that down payment on a home and maybe put it in the stock market or another investment that calculation generally depends on how long you intend to own the home. the longer, of course, the better morgan >> yeah. i mean, it's really fascinating

because it affects not just actual, you know, home buyers, main street home buyers but this will have an impact on single family rental companies as well. i mean, we talk about what's working and not working in the market home builders are also under pressure today, too. is presumably this factoring into some of the selling that we're seeing there as well >> well, the selling that we're seeing today is entirely based on mortgage rates. we saw the same thing on monday when treasury yields popped higher and mortgage rates follow those yields it's this knee jerk reaction it happens on the date freddie mac at 10:00 a.m. just reported mortgage rates for the week up high since last spring so you see that reaction in the stocks but then the next day they tend to come back up again because the fundamentals for the builders are just so strong. really strong demand and very low supply morgan >> all right diana olick, thank you for bringing us the latest on housing. just get a quick check on the markets as we wrap this show

here really pearing the losses we saw earlier in the session with the s&p now fractionally higher, both the nasdaq 100 and nasdaq composite higher as well the dow is underperforming down about one third of 1%, 130 points right now, being led lower by ibm, also goldman after a downgrade over b of a. that will do it for us here at "squawk on the street. "techcheck" starts now ♪ ♪ good thursday morning. welcome to "techcheck" i'm carl quintanilla with jon fortt and deirdre bosa today, tech's big tumble is a hawkish fed the biggest risk to your portfolio this year do not a break down with dan niles. then fintech's fumble. why today's selloff might not be a bad thing when