which are going to keep inflation higher, longer than i think we want. >> all right that's a nice soft shot you got there, trender, your hair looks fluffy and nice. thanks for being on with us today. >> my pleasure. tune into andrew at 10:00 a.m. >> streaming is the future >> i know how to do that, netflix, right make sure you join us -- >> peacock. -- tomorrow. next is "squawk on the street. good wednesday morning, welcome to "squawk on the street." i'm carl quintanilla, with jim cramer and david faber looking a bit better than tuesday. that said, the ten-year does hit 1.9, oil cracking 87 today stocks looking to claw back,

morgan stanley and p & g apple, google and others target the antitrust efforts, say it would harm consumer security how about the 5g fight, faa lobbying successfully, as there's a delay at least around some airports. morgan stanley beats, but it's really the guidance on expenses, particularly of b of a staying flat for the year. >> jpmorgan will report for tomorrow jamie dimon came up with a narrative that scared people the narrative for bank of america is -- you can't have it both ways. if the fed raises four times, they make $6 million they don't have to do anything we got the thing that says if the fed raises, it's bad brian moynihan would tell you

we're not going to pass that on to you and your checking account. we can continue to talk about expenses or the big money. the big money is what happens when they raise rates. i don't know where it came about that everybody says that inflation is out of control when it comes to the bankers. i made the comment about there's bidding wars for bankers that's untrue. there are bidding wars for people who work at meta. >> i'm sure there are. >> goldman sachs is not trying to recruit aggressively and losing people to sofi. >> i'm looking forward to hearing from him, to your point. yesterday -- i was just talking to wilf about this, that goldman's profits were up dramatically last year, as were

bank of america and others >> is that because people have trouble with math? this is arithmetic, the stuff from second agreed whoever is writing the stories, i have to believe they're not done by humans but i think it's robo. if you're trying to buy a make xeej for $16 billion, you don't turn to a machine and say, is that a good price? you speak to humans, so those humans will be compensated i think we have gotten away from the idea that there's a reason that people are charged. it's because they have advice. one to two citizens up three. so maybe that's more about the

structural technological change that dimon is seeking. >> one of the things i talked about with brian moynihan, i'm fascinated by how much money they have spent on technology. they have been bracking about that for year. remember it used to be only union people transacted. now octoagocto-genaryians do it. well, now, suddenly they have eg to raise they don't have to do anything it's like 1982, when greenspan said we ought to let the banks make more money. >> still, mortgage business, downgrade a major homebuilder. mortgage rates um four straight weeks. >> you know, the robo-mortgage

companies have been taking that business away. the real good business is checking account >> i think it's 0.00 last i checked. maybe actually five cents a mount? >> i love they're charging you and -- i want to be in that business, right? david, how much risk is there to charging you for your checks and making on the credit -- that's what i call business. >> it's a very good business getting back to bank of america, they had a very good last year the stocks all moved up last year, some more than others, other than citi, they all actually moved up sharply in the first week or so of trading for this week, prior to the beginning of earnings season, so making up a bit of what was just

lost, but they're coming off a record year. >> now, goldman, people looking for -- 60 -- >> let's come back to goldman. just can't help themselves >> people -- 60 million, now 40, what's going on hto appen you think the world is going to fall apart the new normal is that it's bad? it's better than seven goldman is at seven. >> particularly if they can maintain returns on. >> goldman has beaten every bank, and i'm not going to pay seven times earnings for goldman sachs. >> i've been critical of the politicization -- >> when you go into the credit

card business, you don't make a lot of money for the first five year, but the apple credit card, it's possible that people sign up i just want to understand, you've got markets, credit card, wealth management business, and it's a pastiche. are you wearing two suits? you have two suits on today. >> i'm not wearing two suits. >> did you dress in the dark >> yes, i often do at least i'm not chomping away on saltines because i had a late flight at bernadette if you went there, i'm going there. >> the gloves are off. >> can we talk about morgan stanley? >> i have a mouth of caviar, that was like the size of everest. >> that's horrible. >> finally a opentable seated

diner. >> i had a great time. no one next door got angry we laughed so much. >> no masks, i assume? >> no masks. no mas >> obviously that company had -- >> now, that guy, i want that guide who sold it. that guy is it mo, larry, shep which guy is it? >> again, a return on potential common equity 20%. lauded the business under james gorman, the ceo for quite some time now, and probably will be for some time to come. they are not what they were, asset management -- >> they pivoted. they didn't want to be investigated by the government

forever. they went into a business that people used to say, well, hold it, really important people, they go down the elevator, that hasn't proven to be the case at all. a lot of that is a very good culture. you know, 20% return on common equity, i remember when david said you would never get more that -- >> i want never double digits. i was dead wrong, but yes. >> i think that's important to point out. [ laughter ] >> i didn't make a prediction. i just said -- >> we don't ever talk about what a goo does at the peak. >> except when i do it when you do it, i'm not allowed to talk about it people should know that jim is constantly meeting with ceos, he does eat well, and never takes his tie off. >> my trainer comes at 4:00 a.m., beats the heck out of me

for a couple hours, and that's all right. you may want to have the gravlax. >> as a key senate panel is taking up legislation that seeks to curb the market power of dominant internet platforms, combatting anti-tech sentiment we'll get a better sense of what regulators think as l lina khan take to kara andrew. >> her name comes up when almost are -- every deal come us. >> many people will be listening

very closely to this conversation to get some sort of road map here, or more sense as to what we know will be a very aggressive ftc, one that's not necessarily looking to precedent. look no further than still waiting for amazon and mgm there's the example of a deal that nobody would have thought there was an issue with. by the way -- >> you know, what would be amazing, and then we got yesterday's -- sorry >> let's say that amazon, say jassy woke up and said, i hear you. i'm going to separate amazon web services tiesing and retail, the stock would go up a couple thousand so let's make more money for people who own amazon?

right, though interestingly, jim, to your point, if you have issues to amazon, take it to amazon, get a court remedy if you can prove your case. you don't do it on a deby deal basis. >> don't you have to have a doctrine >> a lot of it is overall market power, the size of these companies is such that their power within their industry and over consumers and over smaller companies is just so enormous they need to be curbed >> let's say that the ceo of the head of amazon web services, let's say they cut, as jassy did, they cut the price 50 times. that's what they did well, i mean, if you had to separate it, they may not be

able to subsidize that they may have to raise the price. the doctrine is supposed to be about the consumer doing better. it's not about some amorphous notion that amazon is standard oil. it's not >> so you're looking a the it from a consumer pricing scenario, and the bigger they are, the more they can afford to keep prices low. >> look, i understand if you go back to rockefeller, rockefeller abused the market power. they bought everybody. i mean, that's not what's happening here there is a system of justice in the country, which is you have to have a reason and it can't just by market power >> we'll see if you're going to bring things, which you may lose if the law is not on your side and if that doesn't change, but they may be making some somewhat novel

arguments. at the same time they can certainly caught a great deal of problems for companies because a few companies are willing to challenge the government some are, but few are at this point. that may be somebody we have to see more of. we're going to be listening closely. >> david, at harvard, we did something walk mock court. okay so -- you're lina, not lena dunham who is just a great follow on twitter, and tell me why is it dangerous that call of duty isn't with xbox give me the case. >> very simple, they will make it so using the experience is far better that using it on playstation or nintendo, therefore they control

vertically that part of the business, and that's not competitive. you have to allow it to be exactly the same on every platform. >> i might be denied of a chance to play less -- >> i don't know. >> you're like mock crackers, like mock apple pie. when we were really poor, my mom would make mock apple people. >> saltines are delicious. >> we have to go i know there's a fabulous person setting up i would throw that case out, it's frivolous i don't care that's no at&t merging with sprint and raising my cell phone bill. >> we're going to be more on the atvi breakup fees, a new comp on apple and sofi becoming a bank we'll look at futures on this wednesday. we'll be right back. ink retiremt would be the last thing on my mind. thankfully, voya provides comprehensive solutions

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up to a $500 prepaid card. get a great deal for your business with the ready. set. save. sale today. comcast business. powering possibilities. raising the organic growth outlook, consumers largely shrugging off the price hikes for the company's household staples here's the ceo this morning. >> our business model has a normal component of pricing. pricing has been a positive contributor to our top line for 17 out of the last 18 years, 42 out of the last 45 quarters

you're able to charge a bit more. >> volume up in every segment. detergent up, it was volume, jim. >> i was impressed with this num number that just shows you the power of this model. let's come back to the multiple,

which is sort of the name. i you this it's cheap? >> no, no. procter is at 26 goldman is at six. who's making more money? the multiples are a little strange. i mean, they really are. morgan stachbtly is just a machine. i look at a lot of this is -- mccormick trades at 32 times

earnings people always say, listen, spice, good business, but is it a 32 times earning business? yes, because no one else has been -- there's a lot of little companies, but in the end -- remember when dollar shave and harry's? >> we went through a whole pertain of nelson peltz, remember >> the only thing dating back to gillette, you have to call someone to get it open it's impossible. >> yeah. that's why i prefer to get my blades sent to me. who wants to go and have to deal with -- >> i get my blades from amazon. but it's quite a good.

>> talk to lina, that's not fair lena dunham is amazing she took -- -- not a gap, like a year, st. anne's and now she's a star what >> wow >> one more look at futures here on this wednesday, area we're coming off the 2.5% drop don't go away. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

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and make this the best year for your business yet. visit your local t-mobile store today. let's get to a mad dash with jim, about two minutes before we get started with trading what do you want to focus on >> key bank has the piece that i think everyone has been waiting for the shoe to drop toll goes to sell. kbh goes to sell, they adopt like lennar. this is all based obviously on the tailwinds being over work from home may be over, rates going higher against this is is, look, we can't build a lot of homes our rates are going up, we're making more money, but david, there are very few people in the business who want to buy these

they're trying to get out ahead of them. it's what i call the playbook. they're not going to think about if there's fewer homes they say i have to get out of these. this is the disconnect when rates go up. what are you doing at toll brothers >> you don't want to be, as well, in some of they highs multiple revenue stocks with very little earnings you don't want to be some spacs. you don't want to be in any of cathie wood's arkk. >> i want to be in companies that make things, do things, pay for them and are profitable. it's a pretty simple message that's what i want you know what term i heard and haven't heard it since 2000 --

pre-revenue. >> yeah. >> look, i mean, wheels up amuch as i like blade, they're getting i don't like sag harbor, montauk. a lot of the facts have no research coverage, and then we have the cathie wood stocks, that tends to have no -- they're kin of a little pre-revenue, on when she started buying draftkings i like draftkings, but -- if the knicks get one point, you get $500 this stuff is crazy. i want one last night -- well, it's -- they had a deal -- >> he's talking about draftkings >> they give you money if the chiefs win you make more

money, but if because of lo wins, you make the money david, this is not a way to make money. a really smart kid you could open deals like with everyone. i think like they make $1,000. this is not a good business right flow bank of america pays you nothing to get your money. these guys pay you money to get nothing. >> it's called a customer acquisition cost >> yeah. i don't want to do that. mgm, i mean, these guys are given away money -- i've never seen it before, not since i got a toaster for opening an account with citi. have i seen people give you things like this >> they're spending a lot on tv ads, we all know that as well.

>> they're just a gift that keeps on giving. >> they go to buy on this macau reset. new laws will put a capital on external competition >> see, i own wynn for my charitable trust it's been completely idiotic and i've been wrong. i didn't see omicron or delta coming i thought it was the way to play the openings i freely admit -- this is something i do with my morning meeting. i got wynn wromg a lot of people like to say they're early. david, cathie wood is early in a lot of this. >> potentially

>> sometimes it means wrong. she has proved herself wrong interestingly, arkk now can take a look at the key fun, the innovation etf, which we focus on a lot on for reasons that are worth focusing on, that it is so representative of the speculative part of technology that boom over a year ago. but the great outperformance, look at that it came right back to more or less mean so there you have reversion essentially. the nasdaq you can see is actually outperforming not so much the s&p, but getting much closer, if there are outflows

what needs to be sold. is there an opportunity for a hedge fund to short some of these names, because they know they're going to be sold and/or forced to sell remember, she'll say, listen, you have to rebound. you have to rebalance at night i think that where the money is being made is unitedhealth goes down 40 points off a miss by humana so united embarks back to 500. so it's companies that are going down in sympathy with other companies. this is what happened with bank of america, morgan stanley it turns out to be a false tell. there's ricky jay. >> i love rickey jay. >> he said, this is how you don't -- this is a tell. you can see what someone is playing in their hand.

i mean, there's a lot of people out there playing in their hand, humana, i'm going to see this and ricky would say i know what they're going to do, they're going to do the wrong thing. >> he also was an incredible magician >> a great actor >> watching "deadwood" now, and he has a great part in that. >> he would predict the wrong move that people would make, which i thought was amazing. he would know you were going to do it wrong. it's blackjack, and a lot of guys -- i saw guy hit an 18 and got a 3. so i see a lot of mistakes being made by people procter & gamble was down a dollar, but no one had listened to them. why are people suffering

listen to what the company says. i find it discouraging they're true traders, not investors. you know, i'm going to give you a little newman. someone will say it's a 50 basis point -- point. >> there's a lot of that 25 points by the end of march, which would apply somewhere in there. >> morgan stanley, the 50 basis points >> 75. >> by the way, you can bet on that on draftkings if you want fanduel or mgm or caesars. >> 1.2 million people signed up for sports betting sites in new york last weekend. >> why not they give you $1,000 >> it's a good deal.

you can also bet on what jerome pole had for breakfast lisa lynyrd, is she allowed to bet, his wife? >> no, she barred from betting, as are other fed governors they can trade all they want we want to look at yesterday's enorm outs deal, microsoft buying activision. whatever you want to call it, you can see how far below that $95 is activision. that's part of what we were discussing yesterday we mentioned it this morning as well how big isthe real antitrust risk here. what does it actually mean and/or not understanding necessarily who will be review it, what that review will really bring, and again why it's

important to listen to lina khan when she's speaking to kara later this morning thee not out of line with what you would see with a deal, and microsoft is not committed to anything other than, you know, it's not obligated to admit to any undertakings on its own business it's not hell or high water, anything like that you have termination fees that basically started $2 billion go as high as up to $3 billion. one of the questions will be, and we see this sometimes, you get a second request, which we without a doubt will here -- i shouldn't say without a doubt. expected then it becomes -- you substantially comply as a company and then companies just sit around and wait. when they can actually start the

clock, so to speak and saying we're going to close, the question here for some is, well, july of '23 may not be soon enough for microsoft to know whether it needs to go to court and the world changes and will microsoft still be committed to the deal there will be a lot of focus on this in the next year. >> and another way to kill it, is just to -- >> just to wait it out but, as i've been saying, more companies will say no, we're not waiting it out we're going to start the clock, sue us if you want, but we need to get it done faster potentially, if that's possible. well tall a bit about "call of duty" one of the keep titles -- candy crush people play on their phones this is the key title. what will they do with that? they won't prevent others from using it they can't really.

>> did you see "call of duty" has to be spun off >> no. they don't like the behavioral remedies, either they don't really work it's a lot of unknowns, which is why you're seeing a significant discount, also given the timing as well. by the way, i don't know why they made so much about bobby kotek not saying with the combined company what ceo stays none he said that yesterday >> wpx was bought by devan, and the ceo got the job. he stayed on >> right if you get the top job at the combined company microsoft is buying your company.

>> i'm not going to discount the culture they had did i want my daughter working there? arguably, no i would rather have her working at nu nucor. >> you saw sony getting hard hit there. >> we do have a down grade regulators can focus ohm -- they do expect the deal ultimately to complete >> look, carl, i've got to tell you, let's say the deal really does have problems people will say i mean, there's one, david, you never talk about

it i think you think it's a third rail >> it's a third rail >> it's interesting down there in the subways these days. >> meanwhile, with tech it's a split of a picture >> i think the cisco is wrong. this company makes things as big as buses you need them to etch -- for semiconnector equipment. the china very have blocked.

cisco is doing incredibly well they're saying, well, this is the time when you sell it. well, it hasn't gotten here yet. you don't sell it. this is the time to sell -- you've got to sell tampa bay now. once that game starts, you don't want to be -- no the cisco, that's a fatuous down downgrade. he said the orders are regardly good you don't sell it. i don't even give a damn i'm just saying i've traded cisco. i remember when john said the quarter was in the bad. >> who >> the ceo before chambers >> he was the ceo before chambers really >> yeah. so i'm thinking, you know what this guy all to cover cisco, the food company that's about the knowledge he

has. >> dysthat >> it's the evidence lab >> it peaked in the middle of 2021, i.t. spending. >> i don't know if you watched monday night football, but they had dwayne "the rock" call the game, i would like to ask him about it, because he would know more than this analyst honest to god, i'm just talking about since '92, when i they he may have been, i don't know in pampers, that's a whole other story versus luvs, how could he say this check is now for the -- i don't want to hurt the guy's feeling i apologized >> you said the rock knows more than this guy.

>> the rock is really smart. >> i apologize in cycle, since '92, this is -- this guy has a -- i just know that i have this now, this can be deeply flawed, right? >> nobody questions its computing powers -- >> first off, your makeup and hair look great, but this is when you buy in. meanwhile, we are folding 4600 let's get to bob pisani. hey, bob. >> two to one advancing to declines, that's a good signs. cathie wood's ark funds all up

remember, this leaders this year have been energy and bank stocks, they're lacking alternates bit. a bit of a relief rally. i think the important thing is we had nice solid loan growth, a 4% beat, which is okay and luxury guys, over in europe, burberry and riche mond had good reports. it's a pretty slow start to earnings seasons

they're beating by 7.4%. remember last quarter, the quarter before, they were beating 15% to 20% it's half. that's normal. that's what i'm saying it's going back to a more normal distribution i think it's not the fourth quarter that matters it's q1 and q2 do analysts believe the numbers will get better? the estimates have been coming down for the first quarter and second quarter this doesn't worry me too much it's very early. it all depends on the body language of the ceos are they going to enable the

analysts to raise estimates. that's part of the problem we don't really know a simple way to look at procter & gamble, the key thing is this concerns about pricing power and margin erosion they had 6% organic growth that's good, but look where the growth came from 3% was from volume growth, a half, and three percentage points because they had pricing power. half of their organic sales growth is because they had pricing power. very encouraging overall they did have gross margin erosion, yes, it was definitely there, but everyone was very encouraged by this fullscreen, this indicate that they still have pricing power this is a company that everybody watches. if they've got it, other companies may still be able to get it what's moving the market is inflation, wages, commodities, higher rates out there, and then just keeping an eye on what's

mattering, all equity guys are watching the ten-year yield and crude oil prices as an indicator of global grout, it's a rare occurrence when equity traders message me about bond yields, but i got several notes about german bund yields they went positive one basis point for a ten-year yield? germany. that indicates to me, the equity community is very much watching the interest rate situation here and around the world carl, back to you. >> bob, thank you very much. still to come today, the 5g roll-out partially delayed, pretty much a win for the airline. >> the fcc commiter will join any. let's get the bond rolled as well the ten-year did get to 1.9. the two-year is still above 1,

though we'll be right back.

keep your eye on the auto space today. ford's down a bit. says q4 will include a gain on the rivion investment. sign up and tiend out more or use the qr code on the screen. we'll be right back.

let's -- get to jim and stop trading. >> listen, he did have a good quarter. so, just keep in mind that happened early if you want cost down, you buy wells. >> how about tonight >> i have a pretty good show i have anth ony, noto and gary

gensler. we're going to talk about spacs, what happened a year ago with gamestop, payment for order flow and what's going on in the robinhoods and we're going to talk about whether crypto -- i mean, deutsche coin. i mean, you know, deutsche coin. should we just have jokes and everybody lose money the chairman is very concerned about people losing money. so, we're goi going to talk about losing money because the young people who watch, are a little off base in what they buy. >> getting close to 14 >> that kind of makes sense. >> we'll see you tonight, jim. congp.xcngat capitol ehae mi u

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good wednesday morning welcome to another "squack on the street." s&p well above 4600 for the moment this hour, lina khan will join

for the capitol exchange it's her first on camera appearance since taking the role and well bring you the highlights throughout the hour >> it is time for three and 30 and weir grering to look at some of the stocks moving right now we're going to start with sofi, which is surging after they won regulatory approve to be a bank holding company. shares are up about 12.5, almost 13%. this is going to mean more regulatory scrutiny and can r more competitive products the customers. and ceo will be on "mad money" later toonts and more spending on microsoft's xbox puts more pressure on sony

for playstation. year to date they're down about 10.5%. been a rough start to 2022 and another busy day for earnings proctor and gamble raising 2022 sales guidance as rate hikes offset rise in costs, with consumers paying more for the household staples. shares are up more than 4% >> let's go to willford frost. >> and bank of america both bouncing back today because neither was dragged down by cost issues, as some of their peers have been. bank of america saying expenses should be flat in 20s 22, compared to last year. while the cost came in below, including compensation, which had been an issue for goldman sachs yesterday. and their target ratio didn't disappoint

here's james gorman on costs >> we're a different business model. those advisors have paid on the a grid there's no inflation. for it's based upon what they produce we've invested a lot in technology but we've also bought companies. i said before, we didn't just buy e trade and solium, we bought technology businesses within them. we made that trade off so, it's a combination of all of those. and i don't know i guess it's a different business model >> so, the theme is one of slowing trading revenues overall. investment management was strong and helped fuel the 20% long-term target

there will be a lot of focus on that and their guidance on their call, which is yet to start. and we'll be joined by brian moynihan on closing bell later today. both stocks rebounding, as i said add the top but still down over the last one week, since before earnings began. by the way, over one week, the best performer, wells fargo, who's in positive territory. j.p. morgan down double digits >> let's talk a bit about that it does appear now to have been the outliar, given we've heard from all the big banks >> yeah, it does and particularly the guidance given on the call where, they were asked about it often and weren't able to suggest it's just a one-year item. what i would say is perhaps saving grace to even that is it was very much investment for positive reasons in order to continue their digital

expansion, expansion in the uk and areas like that. they've got a decent track record on that note. when you get close to two-times tangible book value in your earnings multiple, you're right to trade down on any minor dispointments. i think that's a theme you could extrapolate for earnings this quarter. and why barng bank of america and morgan stanley aren't holding on to their bounce this morning. >> financials are one of the three sectors actually trading lower. thank you. well, at&t and surverizon a delaying their roll out of 5g. >> today, flights around the country, with the exception of a few weather-related delays, not

5g, it's basically normal in the united states as far as flieooiz taking off or landing. the deadline was this morning. and at&t and verizon said we won't delay it and then said we'll delay turning it on at airports around for country. as i mentioned, there have been no weather-related 5g delays around the country so far today. we wouldn't expect that since it's not been turned on at airports delta said customers should prepare for the poshability of some weather-related 5g delays in the future. this is a huge week for the airline industry take a look at united and american today, after the bell, we'll get the kwux4 results and before the bell, we'll hear from american airlines

lot to discuss and we'll start with them almost back to back. but we're going to talk tomorrow morning on squawk box. we'll talk to doug parker we'll talk about the fourth quarter, as well as the outlook going forward. then scott kirby again, lots to dus cush with these guys yes, the 5g issue is going to get a lot of questions and what did we see beyond the first quarter? when does it start to pick up? second part of the quarter, late february should be in much better shape than we're seeing right now. we haven't mentioned the pandemic maybe that will say something about activity in the weeks to

come >> the pause on 5g protects flight safety and allows aviation to continue without issue. the next guest says it's, quote, a bad deal joining us, the fcc commissioner great to have you. >> thank you >> the age ency looked at this several years ago and there was a deal the white house, you say, walked away from >> two years ago, the expert agency charged by congress with making exactly these types of determinations about the coexistence of 5g, reached a decision based on science, sound engineering and real-world experience 5g is live in nearly 40 countries. look, this is, frankly, parted and parcel of a broader problem we're seeing within the biden administration of chaotic decision making.

they they said there's no problem and sthen seemingly reaching for duct tape to concoct a solution. then they issued press statements saying they solved the problem. 5g sites are laying fallo right now and flights continue to be grounded i think this is a lack of strong and competent leadership and the bide cadministration to stick with the sound engineering and science. >> do you think the concerns are illegitimate >> i do. and here's why there's a process where they put in their engineering study and the folks at the fcc look at it. and their studies were fundamentally flawed beyond academic papers, we have real-world experience. they agreed to confine their 5g

operation as they did in france, where u.s. flights are flying in without any issue, and any flight restrictions. it boggles my mind we're not able to do in the u.s., what they do in france, which is have great 5g and maintain aviation safety >> commissioner carr, the argument you're making is this is an issue around process, rather than the technology there are different wave lengths of spectrum associate wd with 5g these are wave lengths being deployed that have not been deployed in other countries. we talk to the technology itself >> not at all. the aviation interest at first said they needed what's called a 100 megahertz guard bands. at the fcc, we ended up putting

a 200-megahertz guards band in places, double what aviation experts put forward. and the initial light up of 5g is an additional megahertz away. so, 1200 megahertz away. the process was going to be in france today where thousands of planes are landing and taking off without issue. this is a broader trend where agencies that don't like the process congress put in place, they don't like the outcome. they start going around and outside the process. we saw that in fcc where they claimed you wouldn't be able to get the weather anymore. and they issued a statement saying it was going to result in more car crashes it doesn't i've lived through a lot of y 2 k moments in tech and this is

another one. instead of sticking with a good process, late last year, the biden administration veered course and invited the type of manipulation we saw by entities and you can dispute whether this is a good or bad outcome in terms of the specifics of the deal i don't know all the specifics yet. to me, it's the broader message it sends which is we need competent decision making. and we didn't see that here. >> when you talk about the world stage with china as well i get that given the fact youbl you've lived through these type of situations in the fcc, how long do you expect this process to take to get resolved and how much band width are we talking about here

is it just 10% and if that's fthe case, is it over shadowing the fact that most of the country will be up and running on 5g? >> whether there's 5g infrastructure playing follow isn't -- and if we continue to ignore the sientsz siengs and the exprts at the fcc who made this decision, it's hard to see an end game here at some point the adults are going to have to appear in the room and sigh we're going to go with the siecience, not hysteri misinformation campaign. but until that happens, i don't see how that ends. >> explain what the aviation industry has to lose or gain by taking the position it has >> good question what we can see is the actual study they have put in suffer

from some really serious fundmental flaws and do not support their argument at all that 5g is going to disrupt air travel it boggles my mind that they were able to thut shout down and ground flights based on these studies. it's not really clear the motive, other to say it's a broader trends across agencies that don't like congress's decisions that fcc calls balls and strikes in terms of spectrum interference and they're acting like the baseball player that kicks dirt and tries to appeal to the crowd to overturn the ruling >> i guess the air indias and emirates are changing equipment. are they also wrong? and to what degree is this the fault of the prior administration for selling spectrum without thinking this through? >> we had a 258-page document

that draesds all these concerns and we were lined up to green light this 5g bill back in december 5th it wasn't until nine monthins io the biden administration it's going off the rails. and they said they didn't know about the problem until late last night if you're flying to france or otherwise, then you should be free to fly into the u.s. without issue as well. because the agreement the carriers were offering was to mimic the spectrum environment that exists today in the real world in france. >> the argument is the laws of physics apply equally in france and the united states. we'll see how it pans out but we appreciate your input. as we go to break, let's look at the road map for the next hour, including ftc chair lina khan, joining us for her first on-camera interview since taking her role >> and homebuilder stocks are

getting a big down grade and half a billion free at-home rapid covid tests are coming online and available for order. we're going to discuss one of the country's largest nonprofit health insurers. we have a lot more "squack on the street" ahead. 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. become an owner.

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the ftc currently has a

lawsuit against facebook, alleging the instagram and whatsapp were designed to maintain the monopoly, because, in part, there was the transition to mobile and facebook saw it wasn't up to the task and it needed to make this acquisition to survive the transition in mind site, i think looking back, looking at the documents, the evidence available, now the agency was able to determine that was an illegal transaction. i think part of the process of revising the merger guidelines of doing the studies to understand what did we miss? the goal is to help us answer precisely that question. >> that's lina khan in conversation with andrew ross sorken talking about, well, you heard it there, reviz siting some of e deals facebook did that made the power it is, certainly in mobile, and questioning whether they should have been allowed in the first place.

i guess evidence now that they were illegal transactions, so to speak. those were her words we're going to continue to monitor this conversation because it is it the first time we're hearing from her and we know, at least i can tell you having multiple conversations with people advising on merger and acquisitions, that she's a prominent voice in that world and one they're listening to closely when it comes to deal, whether they be in the past or ones that are currently in front of the agency. >> and when we're talking about meta specifically, facebook, we're talking about deal years and years in the past. instagram and whatsapp of course, it throws cold water on some of the megacap tech names as you see the antitrust scrutiny as you see scrutiny coming from

lawmakers as well. we've been talking about that for years. nonetheless, investors seem to be shrugging off comments. as we are seeing this broader rally in tech shares but it's going to be interesting to see what chair khan and other regulators, carl, are going to say about some of the new deals that have been announced one i've been watching closely is the lukeheed martin deal for which the legulatory decision and potential closing date continues to get pushed back we saw something similar with invidia's arm. we can talk about tech but it's spanning sectors going to be interesting to see it all shook out >> invidia arm, still an open question one of the reasons they're looking at the spread and the microsoft offer price. the arms are at work

they're working hard on this one. >> we don't know whether the ftc is going to have the jurisdiction or the department of justice microsoft, apple, amazon, alphabet and meta and whether or not they're going to be getting enormous scrutiny on any deal they did, even if on the face it wouldn't have any trust implications when it comes specifically to activision and microsoft, do they earn more market power by owning these titles such as call of duty and, not preventing them from being used on other platforms but being enhanced on their own platform. for it's one of the reasons why the stock, activision is trading well below the all-cash deal it has in place to be acquired >> that's going to be one to watch, absolutely. and of course, we're going to

continue to monitor the solution as we head to break, we're going to check out shares of united health after a beat on the top and bottom lines we'l we'll have much more on the biden's at-home testing program, including who is left with the bill somebody's going to have to pay it i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ ♪♪ at cdw we get your teams work in different places, in different ways and across countless different networks.

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beginning today, americans can obtain free at-home rapid tests at federal tests.gov this past saturday, the president also mandating that insurance companies must cover the costs of at-home tests and emblem health ceo and president. good morning good to have you with us >> good morning. thank you. >> to start out, i think the website's in beta but the reviews yesterday appear to be pretty solid any hiccups as far as you can see? >> i think it is in beta and i think this is an important move on the part of the administration clearly they're enlarging their

strategy, which gives them a strong stake in acquiring tests, making sure the pricing for tests is affordable and the stuply is there. i think it's welcome news for all americans and certainly for anyone in the health care ecosystem. because the strategy kaents just be about vaccines. it has to be about tests and mack masks and bringing it together >> has it been difficult to keep up with coverage requirements? >> the administration gave health plans four days to create an entirely new infrastructure to meet the regulatory requirements i appreciate the confidence they had in us. on the other, i don't know any entity that can seamlessly move in a short period of time. we did and i'm sure others did

across the country as well but make sure you're, a, putting together a website that's that works and understandable to consumers and you're doing your part to keep peace of mind i'm proud of our team. they worked night and day to put it up the website that works and allows people to use it. that includes simple things like create ang entirely new form to make this work which is not an inconkwengsal endeavor >> breath takingly short amounts of time. hoy much demand to you expect from your customers in terms o ordering the tests >> the jury's out, if you will, in the sense that it's important for people to get tested, to have peace of mind too, be able to go about their day to day but it's very early, of course

and we know that people are responding to the administration we know they're responding to the new websites that we put up or their health plan as well but it will take a few days for us to calibrate how -- what channels people are using. the other side of this, morgan, is how do we step back and enlarge this strategy nationally so, we think about supply, testing. we think about making masks, free tests, vaccines, the whole pantheon of resources together available to the american people and i think the administration seems to be on the precipice of enlarging the strategy but they need to talk comp rehengsively, think comprehensively and act comprehensively too. >> it's difficult. we've heard about omicron what eight weeks ago and people expect half a billion tests in

the mail right away. my question would be how do we apply the lessons into the next variant wave or do you think maybe the ad vents of antivirals will change the question >> i don't think we can lurch from variant to varybt kwab think we need to step back and get the answer to how does the country live with covid broadly? and we know it's going to be with us for a while. we know we'll see new variants we know until the entire world is vaccinated, and maybe even not then, we're going to continue to struggle with this disease. so, how do we address it how do we understand what to do and what to mobilize, recognizing it's going to be with us for a while- and what is the role of government and i think it's much bigger than it has been that's what people expect. >> appreciate that very much

going to be interesting to see how this all gets out to people. >> thank you >> well, it's now time for our etf spotlight. we're looking at the home builders ticker xhb down more than half a percent. this is key bank, with the home builder names. say n saying inflation and rate hikes will cause a pullback. and you can see they're all under prsu rhtowesreig n ♪ ♪ 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

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here's your news update for this hour. blinken repeated support for ukraine and says they'll pursue

diplomacy with russia for as long as possible but says it's still not clear what their demands is in the conflick and university of michigan will pay 490 million to settle sex lawsuits it will go to people who claim they were assaulted by dr. anderson during their time in school. and federal health officials stress a cloth mask offers less protection they'll ship late next week for pick up at farmyishes and community health centers andre talley was a fashion journalist, who was in the fronts row and had considerable access and beyond and was a considerable figure. i'll send it back to you >> quite a life.

i was reading his obit this morning. thank you. let's get back to that important interview with lina khan here she is talking about how the ftc makes it sigszs about what potential deals to focus on >> we are severely underresourced the -- we have around 1100 folks that's fcc the fed hount counts is around two-thirds of what it was. they've actually declined at various points in the last decade so, when you have, like we did over the last year, a doubling of, in terms of deal volume, our resources stay the same. the same number of people responsible for investigating the transactions the number of transactions has dramatically increased

that creates significant strain and we have to make choices about what deals we're going to insure we're investigating but they're very real trade offs on what the work is going to come at the expense of. >> can you speak the trade offs. there's business leaders watching and listening to your words right now. we're going to go after this company, but we're not going to. maybe there's going to be a deterrent effect and that will have a greater impact creating the market you want and from an efficiency standpoint -- i don't know but take us insides that room, if you could >> it's a very difficult question and one that weighs on me you mentioned deterrents i think that's key i think what we've seen over the last few decades is there have been mergers that have made it out of the board room that have seemed to be facially anticompetitive, facially illegal. i think what this suggests is firms have not been deterred

because the consequences of proposing those deals have not been significant many of them have flown under the radar and enforces were not able to take action. and when they did take action, spend some money, fight the case in court but the kind of deterrents that we need to see to change the game, we're not seeing i thik nk it's certainly true that's something we think about. and we think about what are instances in the merger context and what are instances in which certain types of actions can have a market-wide impact. if we are able to obtain a particular settlement or get a good outcome in court, what are instances in which that could change the dynamic in the entire market, rather than here or there. and what are instances in which certain types of unlawful business practices have an upstream source? so, certain types of intermediaries or companies that

may be facilitating bad practices and go upstream and nip it at the source, can be one way we channel resources in ways to be more efficient >> a lot of people listening, as andrew indicated to put in perspective, i think sometimes people, who may not know, was only five years ago, i think, she was finishing up her law degree at yale and wrote something called the antitrust paradox. something a lot of people read at the time. because it started to sum up some of the concerns that were out there about amvazon's growig market power but based on the idea that, in antitrust, pegging consumer welfare is unequipped to capture the marked power in the modern economy. and that catapulted her to a position of great prominence

when it comes to antitrust and so, today, we're listening for the first time, really, in her own words, how she goes bous thinking about these things and prosecuting them >> and why amazon, has, unsuccessfully -- but some of the reviews might some be pending, push to have her removed from any kind of antitrust review around that company as well. because they've seen it as a conflict of interest at least that's the argument on behalf of amvon. interesting commentary on speaking to how many deals, how much mna we've seen over the years, which i know you've followed so closely. and what that's meant for a strain on resources for an agency like the ftc and deals getsing through and yet, both ftc and doj saying they're going

to rewrite merger guidelines and how to, quote, modernize enforcement of the eernlt trust laws regarding mergers, which is going to take time, resources and energy as well it does seem to be an evolving temp templet and one for business leaders to watch closely >> as for the staffing shortages, it's not immaterial to the guidelines. we wondered why on thothe extended close of ati. we learned various staffing shortages could be contributing. >> they have to pick and choose, given constraints in terms of overall resources. but to your point, carl, we have seen a longer timeline for many deals, even ones that had really raised any true anticompetitive concerns

it may be staffing and resources. but they have to make key choices as to what they do go after. perhaps that gives hopeful signs to corporate america, hoping they can skirt by on certain deals, instead of go toing opinion from, in her opinion, an underresourced federal agency. >> as we head to break, cyber security stocks are among the groups rebounding today, including crowdstrike, and fortinet all ofthese names are firmly negative it'sa a mixed picture as the highs come off their highs from earlier.

with bit coin and etherium down from the start of the year. but higher in trade today. yoing us is the ceo and cofounder. it's great to have you back on so, i'm not going to get into why we've seen the sell off, why has it been so volatile, the assets right now, but given the fact you have a very unique vantage point, if we've seen any changes in terms of institutional investor interest and flows into these assets? >> yeah, great to be on. thanks for having me i think we've certainly seen changes in institutional appetite in the fourth quarter, we were able to launch international brokers and through the

subsidiary, which is really one of the largest players in latin america. facebook launched a stable coin product in the final phase and as you look forward to 2022, i can tell you, looking at our pipeline, it's larger than ever. the amount of interest and mainstream adoption i see is tremendous that's why you can't look at the price and say the change in price means change in fundsmentals the prices will change a lot. for it's happened a lot in crypto space and in market price. it doesn't necessarily mean it's going to shift >> are we going to see more customers, consumers using things like bitcoin or deutsche coin, if you're tesla, to actually make purchases? is this the year that actually happens? >> i think that, we're going to have to just see about and the reason i say that is i think people want dollars.

and that's what we're seeing aroubd the world is they want to have dollars in their bank account. the problem is it hasn't evolved fast enough with how our lives have changed and so, do people want to use bitcoin and deutsche coin to buy things it's not really money today. dollars are money. and i think one of the key themes for 2022, will be hey, dollar stable coin will beused for every day goods and services and we're seeing it with murcoddo in brazil where they're using the stablecoin and i think you're going to see a lot more examples through the course of 2022 whether or not bit coin and deutsche coin are used as a payment mechanism, i think that's unlikely in the near term >> and they do have a stable coin

we're going to see regulation come to fruition or given the fact that lawmakers have so much on their plate and it's an election year for so many of the lawmakers, perhaps not >> i think we would welcome sensible legislation there needs to be a level playing field and real rules of the road so that we all know how we want to be able to operate going forward. this is a growing industry and i think the uncertainty is holding back what could be even more growth on the other hand, there's things going on in december. there's been a lot of hearings i think people are getting educated on it there's been some bills proposed and i think they're trying to take a generally constructive tone we would welcome it. we've been a regulation first firm from the very beginning first trust in the state of new york i think having that be more obvious for everybody. is going to be better for the industry

>> thanks for joining us great to get your insights >> grade to be here. >> coming up this morning on tech check, former ftc share weighs in on the comments from lina khan. and what is the biggest tech mna deal ever? all of that begins at the toof e urp as we lost some steam, back to 4275 your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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welcome back to "squawk on the street." i'm dominic chu. near session lows for s&p 500. that's a quiet morning relative to yesterday's big selloff energy is reversing course, as you can see here one of the worst performing sector meanwhile the best performing ones consumer staples and utilities. if you take a look at some of the names in the energy sectors marathon, oil and apa corporation all lower today as you can see, but still up double digits so far just this month. and those today's moves come as oil prices hold near their highest prices in seven years as

a pipeline outage in the middle east and geopolitical concerns add to a tight supply picture. watch those oil prices and watch the energy stocks although it's reversing a bit. "squawk tonhe street" will be right back after this. don't go anywhere.

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welcome back peloton shares stuck in first gear not able to gain any momentum falling 80% top execs not buying the dip either robert frank has that story for us hi, robert >> good morning, morgan. peloton shares hovering close to the ipo price back in 2019 but peloton executives sold many of their shares before the recent drop insiders sold nearly $500 million worth of shares last year when the stock was trading above $100 john foley the company's ceo and co-founder sold $119 million worth of shares between the end of 2020 and the fall of 2021 most of the sales were for above $110 a share peloton did not respond to request for comment but

according to sec filings he started a program in september of 2020 for, quote, personal financial management purposes selling 2.4 million shares of october and terminated that plan and last sale last august two months before the company slashed guidance and that caused that share price to decline by about a third. other peloton executives cashing in closer to the highs the chief legal and culture officer selling $9 omillion. the product product officer over $60 million and the coo $28 million. add that together with the board members who also sold a lot and total insider selling at peloton last year $496 million almost at a stock price at over $100 so looking back, those proved to be very well timed

morgan, david. >> very well timed, indeed stocks trading below 30 bucks right now. down 70% since then. you know, robert, it's really striking to me when we talk about peloton adding more fees to its exercise equipment and getting ready to exit the nasdaq 100. a lot of issues here but we overall have seen insider selling at many companies in general at the highs in recent months right. is this part of a bigger, broader market trend that investors need to be keeping an eye on it? >> they should definitely be keeping an eye on it and perhaps we should have kept a closer eye on it when it was actually happening last year. total insider selling was $170 billion last year. that was more than twice the ten-year average before that and, look, a lot of this is just simple financial management. when stocks are doing great, you are so concentrated as a founder or ceo in one stock you have to take some money off the table but the size of the selling last

year certainly should have been a signal to investors, especially when you're talking about $500 billion in sales at a company like peloton where the total market cap now is 10 billion. >> just 10 billion it's interesting to look at some of these stay-at-home plays. peloton one of the key ones. zoom is another one. looking at today is up ever so slightly, morgan 47 is the market value remember when zoom was well over $100 billion market value. so, the dips have been quite large for some of these names. by the way, speaking of dips ford which is still up 12% for the year is down almost 4.5% did want to point that out for our viewers. the company did say and this is just mark to market accounting in the fourth quarter it recorded a gain of $8.2 billion on its stake in rivian it's not selling that stake. it can't for a bit more time and that will change on mark to market so actually worse less now because rivian shares are down

30 plus percent this year. it has backed off from what was 100 billion dollar market and ford also now below $100 billion, as well, at $93 billion. as i said, though, still a very strong year thus far that is going to do it for us right here on "squawk on the street." "techcheck" starts now good wednesday morning welcome in to "techcheck." i'm carl quintanilla with deidre bosa and john fortt. on pace for the worst january in six years. where is the bottom? then our first interview since taking the job we'll hear from ftc chair lina kahn and early take on blizzard