good tuesday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber coming on the heels of a strong two-day rally nasdaq's up almost 9% from the january 2022 low our road map begins with signs of a muted start to the new month after closing out the worst month since the start of

the pandemic >> plus, at&t it's slashing its dividend path divesting its warner media division after the discovery deal closes. a lot of important details here that we will dig into and explain. and as for earnings, well, we got exxon, u.p.s., nxp crossing the tape, and alphabet, general motors, starbucks and as carl said, amed on tap >> we got that 90% volume yesterday, best nasdaq day since april of 2020. people still think this was a violent rip in a longer term down move. >> i think that we got very negative, and i think that we can stay negative on some parts. i mean, i see some what i call rear guard analyst action coming back to these companies, don't have any revenue, don't have any earnings 50 times sales this is your chance to free yourself of those companies. they're all up take advantage of it focus on companies that make things for a profit, okay?

and don't really are not overwhelmed by supply chain or are doing something to augment i spent a lot of time on stanley black and decker they had terrible supply chain issues, but they still managed to make the numbers. they passed on a lot of the costs. so you're trying to figure out what happens if supply chain issues get better, and the reason i mention that is euro zone factory growth accelerated in january supply chain issues got better. >> that's a five-month high. >> yes some would say just go buy europe could that be a precursor, i thought that was the most positive thing i read. they are getting past their problems. >> u.p.s. with margin guidance better than last year's jim, despite all the labor shortage that we know about. >> got to hand it to her, totally delivered. is really not moving any packages unless they make money on them, focus on small, medium sized business gross margins are incredible. >> kind of reminds me of what you said about ford which is

they actually don't want to sell automobiles in markets where they make no money either. >> for the club, i've got to tell you 49% increase in dividend so you almost get 3%. this is a term of phenomenal proportions by one great executive. used to be the cfo of home depot. >> right you've been a fan. >> i've been a champion. i tell my videos at 10:20 and i was very unsure of most companies except for united parcel and ford. i shouldn't say that there's a lot of companies i like, but u.p.s. has been a big, big let's say i liked it in the low 100s just because tomei came on "mad money" and said i'm done moving packages i'm losing money on wow, doing more with less. >> previous management didn't have that approach then, i'm not quite sure what i'm missing

here previous management did upgrade a great deal of -- >> technology. >> technology. thank you. i was out with an executive -- i was out with an executive in one of the largest food companies in the world. i mean, the amount of direct to consumer they do shocks you. kyle toe may is shocked by nothing, having seen so much at home depot, she just was un unfazed. and look at, that giving back the big dividend, i just love that >> yeah. >> david, the only thing as bad as cutting a dividend is -- you've got a raise -- you have a raised dividend. if someone were to cut the dividend in this environment, i would sell that company nine ways to sunday. >> we are going to talk about at&t extensively in a little bit, a few minutes. >> we'll take a commercial break. >> 59% bump? >> yeah. >> what? >> well, 49%

>> at&t, by the way, we knew where their dividend would come in. >> okay. it's no problem. it's no problem. >> fully separated company from its warner media assets. how about we move on to a company that still has a dividend yield of 4.6% that's judging from today, exxon mobil. >> i was impressed. >> on with becky this morning. >> wasn't that a good discussion, too? >> we've known they're going to generate a lot of cash but 48 billion in cash flow from operations, the m highest level since 2012. >> buying back stock again, remember >> we talked about the dividends. wasn't that long ago people were questioning whether the dividend was sustainable. >> and whether it's be a dividend aristocrat. remember they bumped it a penny to stay at aristocrat. mike werth, is he feeling the competition yet? because bp and world dutch have not really -- they're very esg exxon esg since they elected the

sierra club on the board there. >> they've got very significant members of their board focused on the transformation. >> anyone who owns the stock on that board is happy because look at the move in the stock price that is not because of their esg efforts. >> i could overlay the price of oil, they look very similar. >> they do you still -- you just don't want to only give profits to cvs -- i mean to -- you can't help yourself. >> i've got another one i'm going to reveal tomorrow that i think is the next big thing. >> let's take a listen to darren woods who was the ceo on exxon mobil and a guess on "squawk box" earlier this morning. >> the market's been a big help with respect to our earnings performance, but more importantly and more fundamentally, it's the work that we've been doing back from 2018 through 2019 with a significant organizational changes that we've made, and then moving into 2020 with the cost reductions and then 2021, those trends continued

we cut structural costs by almost $2 billion until 2021 that was on top of the structural cost reductions we made in 2020 for $3 billion, so in total across that time frame, $5 billion of structural cost improvements and the new organization has helped us get a better line of sight to the markets. we've been moreeffective and you're seeing that manifest itself in our earnings performance. >> don't forget, the first round of new krdirectors that they go, they were very focused on costs. >> yes >> it wasn't necessarily all -- you know, esg is important it was the second round that was much more focused. they've raeduced costs a lot. >> what did they have that they could cut out 5 billion? >> they had a lot. >> it's not just the second plant that he cut out. >> no, and they're consolidating now -- >> i don't know, carl, when i see a company, what it says to me is look back two years ago, and you were worried about

exxon, and it just shows you it's a reminder that capitalism -- don't give up on capitalism don't give up on stocks. that was the stock that everybody used to own. you would go in when i was at goldman sachs, what do you like? exxon. really what else? exxon. >> yeah. >> it was still one of the largest -- >> in 2013 it was the larjgest company on earth. >> and had the largest revenue number. >> we didn't get a bump in capex g guidance, they're looking at 21 to 24, so narrowing. would want to see more of ha or is capital return more important right now? >> right now capital return. i want companies to get much more out of every rig that they drill, which is something, by the way, that we're getting from devin where you're seeing that they're drilling -- david, the machines that they're using, they're using half the machines and getting more output. this industry has really gotten

technological. it's a very smart industry >> meanwhile, you got opec plus tomorrow, and there is some chatter about maybe a faster pace of production hikes maybe that's why brent's below 90 today. >> could be. look, we know that the iranians are talking about making a deal and if the sanctions are lifted, they can produce i had a charlie varner talking about oil dropping to 70 i don't know if that's possible. so much of the economy is good >> we got to watch ukraine too i know that's about natural gas to some extenlt, but if there is a russian invasion there's a lot of different things that will be on the table. >> when johnson's there, right >> boris johnson. >> they won't do it while he's -- >> he should stay there for a couple of weeks. >> got a number of nato members, their prime ministers or presidents visiting ukraine. >> it's interesting, there is a great movie now called "munich" on netflix there's a moment -- this is where the great appeasement with

chamberlain goes and gives everything to hitler, and one of them goes aren't you going to speak to the government of czechoslovakia, and there this time britain's not making that same mistake they're actually going to speak to zelensky before they sell him out. no, i don't think they will. >> i don't know. >> i don't know. all i'm saying is that -- >> this question's about the germans and their willingness to sustain what might be a significant cutback in their ability to have natural gas. >> you're talking about 50 -- boy, the stories that are coming out, it reminds me of that movie "airplane. i sure picked the wrong time to decommission all my nuclear -- i picked the wrong time to decommission my coal nuclear plants someone called them the other day a client state of the wrong time to stop my nuclear energy yeah >> very tough situation, and as david says a lot of markets pivoting around the outcome, that's for sure, including wheat

and some others. shares of at&t under pressure, the company planning to slash the dividends, spinoff warner media after their discovery deal closes, lots of details on that, shares down about 6% as we do see futures trying to hang onto green here as we kick off february don't go anywhere.

welcome back, investors have had a few hours at least to digest the news from at&t out this morning of how it's going to divest its warner media

holdings it's going to be through 100% spin some of that may not be a big surprise based on comments that we had from an interview with at&t's ceo john stan key last week a lot of things to go over here, what you're going to get now if you're an at&t shareholder, is 0.24 shares of warner brothers discovery for each share of at&t we already knew at&t's current share owners are going to own 70 more percent of the new co, which is warner brothers discovery, which has 70 million shares p but is going to have another 1.7 billion shares into the market or at least existing. at&t already renewed, going to get 43 billion in proceeds some of the things we didn't know, we didn't know how much they were going to spend on the dividend once they are separated. we do know now it's going to be 8 billion a year that's going to equate to $1.11 a share. you do 8 billion over roughly

2.7 billion shares, you get your $1.11 a share. they're not going to be buying back stock because it's not an exchange offer in any way, shape or form, but they will buy back stock once their adjusted ebitda gets back below two times there has been an expectation perhaps in some way that there would be a split or at least a combination split and spin what is a split? it's an exchange offer whereby at&t comes to you and says, okay, we'll give you discovery shares at some sort of discount if you give us your at&t shares. what do you do with that you retire those shares. it's an enormous buyback at&t will tell you, there's been no precedent for an exchange offer of this type it would have been over $40 billion. by the way, think about how big a buyback that would have been for at&t that would have vastly reduced their share count, significantly increased the overall dividend yield given

fewer shares outstanding they thought to do this, we're going to have to offer a discount that would be even in excess of what you typically see in exchange offers like this, which is maybe 10 to 12% and speaks of the cfo last night, he indicated, no, you know what? it could be as much as more than 12%. that's just not a road we want to go down we don't want to be in a position where we are rewarding risk or institutional holders who are more sophisticated than the retail holders perhaps and ther therefore are going to buy at&t shares and benefit from that discount by knowing that they should participate in the exchange offer there's also a risk they wouldn't fulfill the exchange after. what would that have looked like for the company if, in fact, they had not fully subscribed the exchange offer so that was also a concern in fact, john stankey last week in our interview did point to e executional risk giving signs to the market that 100% spin is a likelihood. >> it is a very, very large

split. it's unparalleled in terms of anything that's been done in history. that certainly gives me some pause. we have a very large retail base as well. that retail base sometimes isn't quite as deep in some of these issues as the institutional base is i'm very mindful of the fact that whatever we decide to do, it has to be something that can be clearly communicated so that there isn't confusion in the marketplace and a lot of people carping. >> now, critics would say, you know what? optimizing the company's capital structure is the key thing you should be thinking about, and this is not necessarily the best way to go about that others will say, listen, if you were to do a $40 billion exchange offer, yeah, you'd buy back a lot, but you'd give up $4 billion at least in discount. maybe more that's not smart either. jim, the market already, as i said, given those comments from stankey last week got a good sense this would be the way it

went there really had been a hope and expectation there would be some sort of an exchange offer, perhaps a combination that would result in a significant retirement of at&t shares. not going to happen, at least not until the end of '23 as they indicate when they potentially can buy back stock. >> i think there's always a hope that there's going to be an under -- you know, under promised and over deliver. your interview should have been the clarion call because it was even more clear than the conference call, the earnings conference call. there are people who just -- i'm actually thinking about discovery here does that make discovery any more interesting >> it may. you're going to deal with an enormous issue of what you call flowback you're going to have all these retail investors, 50% of their shareholder base is retail we're suddenly going to own a lot of discovery shares. will they want to own it there's very different profiles for these two companies. it's 1.7 billion new shares of discovery.

how long is it going to take to find a home where then you know that when you're buying discovery, you're not facing enormous selling pressure. that's an issue for discovery. that's why you're seeing the stock down again today at least it would appear it's going to be down it's got 700 million shares out now. let's add roughly, we don't know exact terms. let's call 1.7 billion new shares they got to find a home. david sazzaslow is very good at marketing. he may have to go home to home to do that. >> he may do that, be careful. and then on the other side, you've got a company that will have reduced its dividend payout a year from 15 billion to 8 billion. remember, told us 8 to 9 billion, it is going with the low end of the range it is now saying that's roughly 40% of free cash flow for new co. they will have 20 billion of free cash flow after dividend payments to reinvest in their

business, to make it have more of a growth profile. >> verizon's buying back, i'm desperately trying to play devil's advocate here. maybe there's something here is there remorse, by the way, about what happened? > >> i don't think there's any rem remorse. you heard it from management going that exchange offer route despite the fact they did consider it at length was simply too complex a structure and one that really would have they felt disadvantaged many of their shareholders they're not doing it that said you're talking about a company that's going to pay out 8 billion in dividend, buck 11 that yield is not far off from where right now verizon is -- >> if you had no -- nothing to do with the company, this is a very attractive idea, and -- but i think vesberg's made that same comment on "mad money," but i'm looking at -- i don't see the growth >> that's the key question if you're going to -- you know, if you're doing all this because

you are fashioning the company more as a grower or in this 5g world, are you going to actually be able to get that growth and there were some questions as to the quality of free cash flow last week during the conference call as well and those are the decisions that investors are going to have to make by the way, a few months away from these two companies completing that split. >> discovery at 1.7. >> billion new shares. >> billion. >> yeah, with a b. no room. there's no room for that >> you can back into an effective -- you know what discovery's market cap is. you can add 2.4 billion shares >> it's as disappointing as carrollton may giving a 49% increase it's exhilarating, it's just disappointing. that's okay. i mean, mahomes throwing into double coverage, disappointing >> jim, we'll talk more about that in a bit. we'll get cramer's mad cash. a bunch of names to get to, some

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u.p.s. going to lead the s&p gainers. average revenue per package up 11 guides above revenue for the year guides margins higher than last year, even with all the cost pressures we talk about. we'll watch that and get the nus.veg bell in just over fi mite don't go anywhere.

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this sells at 25 timesearnings it could grow, this sis a keybac piece. they think you're going to see youtube and maps make a lot of money. i think this misses the point. i think this is the google cloud breakout >> you do? >> i think they have enough equipment to make it a breakout. >> because they are a distant third player in the cloud behind aws and azure with, what, a 6% market share versus the other two much more dominant. >> i think you go to 7 it would be monumental. there were all these issues about how strong azure was, very strong i think you can have some of the parts valuation, which is well ahead of where this thing is worth. you could have it as earnings per share, you could have it as a buyback situation with 142 billion in cash. so before we get -- becky was asking me earlier, do you think this whole move could be a bit of a bubble. i think this is company that

makes things that make a fortune. somehow the multiple has shrunk here so much even as search is doing incredibly well. >> incredibly well. >> not to mention youtube, which has an annual revenue that is very similar to netflix's, just about a half a -- i mean, the same size as netflix and still if you put that kind of multiple on youtube, i think you end up with a higher number. >> i think their conference call is a thing of beauty you have ruth pourout laying things out it's so hard to do autonomous. if you want to buy faang stock, which has the low -- well, believe it or not, meta's got a low multiple too this seems like for tonight it could be -- everything's set up for it to be good. >> bernstein last week said the q4 print looks safe but lower margins ahead, they're going to ramp hiring. they're going to spend on ar and vr. >> that's what they say, the hiring issue is really big out

there. and they bid, they bid against each other because there's a limited pool of talent but let's not forget, smart people out of every school in the country apply there, and they apply at meta, david. really >> none. >> i don't believe it. although devin ramsdale, that's what gold maman used to do you don't have to put a suit on. the stock didn't do as well. >> i think it was a "times" piece as facebook changing into meta you got to maybe apply for your job again that's been frustrating for some >> i have enough sources at meta to say that there's still tons of people who are very grateful to have a job there because they pay a lot, and it's exciting david, it used to be that you

went to -- what were you talking about e.f. hutton. used to be you go to e.f. hutton, now you go to meta you have to explain what people to you're doing. >> all the issues that facebook/meta has had, it wasn't that long ago -- >> seven interviews, david. >> congressional hearings and the questions as to -- >> ain't you ever heard of joe rogan? >> yeah. >> well, took the heat off of mark zuckerberg. >> i guess it did, but i'm just surprised to hear there's the same level of enthusiasm for jobs there but hey, maybe so. >> these are very high paid jobs >> yes. >> with some really smart people, and you work at home >> you can you can work at home or work in their beautiful offices that they continue to lease. >> not use, yeah >> but anyway, just pointed out that there's been no cessation, and i think that's kind of -- they're not mercenaries. it's an exciting place to work

>> we're going to find out google tonight, of course metta later in the week. roughly a flatopen, all time high on u.p.s., jim, at 225. that's going to help the transports this morning. >> so good, and fedex had a decent quarter, too, but i started -- i was starting to think that mr. smith wasn't as good as his son, the coach of the falcons. i happen to like what tomei said when she came in was that we're all things to all people, and we have to stop that. and i think a lot of people felt, one, you couldn't do it, and two, could you make any money with small, medium-sized businesses, it will be a great conference call. i happen to think the rigor with which she approached things shocked people everyone was used to saying that united parcel, they're everybody. you just use them. no, you're not going to use them and not make money anyway, very exciting story.

>> yeah. >> very exciting yesterday of course filled with news in the gaming industry as sony buys bungee for 3.6 billion. >> they had a a -- they were like cats and dogs of people that like it, but can you believe the commotion about wordily? the commotion. >> wordle. >> wordle. i got the call, look, i've been playing this wordle with my wife ever since jimmy fallon said you've got to play wordle. i find it incredibly captivating. they pay low seven figures for it, but they pay 550 million fofo the athletic i don't know, david. >> that was a lot of money. >> wordle, they said it was never going to sell. there are people who do spoiler alerts on wordle. >> yeah, by the way, talking about gaming a minute there. it is worth mentioning that bloomberg is reporting that the

ftc is going to be the regulator of question in terms of reviewing microsoft's acquisition of act vision. they're citing people familiar with the matter who say the ftc will be doing the antitrust review, activision shares up a bit, well below the $95 a share cash deal in place, that's what we call the spread, obviously this deal may not -- may not close for a year and a half, it's possible. >> will they review wordle. >> a lot of questions as to what the ftc is going to do here. >> will they review wordle >> i'm not worried about wordle. >> some concessions you get it done. >> you have to have six. you can't just to five you have to have six. >> this deal, however, as we can see are from the performance of the stock are price since it was announced, there was a lot of concern that the ftc, regardless of whether it has a real case to make, it's going to make it or try to make it, lina khan who

was against it a couple of weeks ago, in that interview with kara swisher and sorkin >> i just find that there are deals, like, i was working on stanley black and decker now that's down today, they talked about supply chain, but you know, that was a combination that was so unbelievable, and was it anything competitive? i don't know, it was just kind of unbelievable. >> it was unbelievable because it was. >> constellation by medalla -- >> listen, you want to buy an anticompetitive deal if you can. it's going to work out well if it gets through. >> when they let all the can companies combine and the price went up big, why was that a shocker? how about when all the airlines combined i understand that she's coming in with a -- we had pretty much -- attitude for everything antitrust with the exception of nvidia >> yes, well, arm, but that has changed, but again, how much has changed and whether you can actually rely on the law to effectively make your case to

block it or whether even just the prospect of trying to block a deal would be enough to get the buyer to say we're done. >> could she have saved at&t by blocking that big deal >> they tried to block the at&t warner deal, that was the doj. >> i do think that the fact that activision blizzard is going to get a big review in what i regard as being one of the most broad markets. look, halo is not owned by microsoft anymore, and has great attraction to people that market is so competitive. gaming market. >> is it going to be in the me metaverse too, very competitive? >> don't forget the metaverse and industrial metaverse is for real you want that bmw plant, and then you want to make a twin plant so you don't have to shut down the assembly line and you can figure out how to cut 30% of the waste, that's nvidia

nvidia, suddenly i'm getting these emails about nvidia. it's been like the greatest pick i've ever had. when you're consistent -- this is what the problem is with owning apple you'll be consistent saying own apple, don't trade it, and then apple dropped 15 points, the biggest bum from the person who bought it up 15. there's an excellent piece this morning morgan stanley, katie u berdy that apple is going to have a sustainable run here. i think it's interesting. >> speaking of chips, we do have amd tonight, we'll see what they say in the wake of a and, pi revenue ahead, 50% div hike, $2 billion buyback the buyback trend is getting some notice this morning. >> it sure is. >> we're almost back to pre-covid trends on corporate buybacks as these windows open, and we're doing basically two acts of january a year ago. >> stanley black and decker is doing a $4 billion buyback that's got to be done by the end of 2022. the stock's down 5

are you kidding me all you're going to be doing is selling it into the buyback. nxp did have a wrun, up 17 after hours. they are auto. very interesting scene this morning, everything was up big take amd, stock was up 2, nvidia was up 7 there's no reason for these things who comes in and buys these things like this it's not the machines. >> yeah, it is, the momentum is the key driver of -- >> what are they doing, i know robinhood wasn't doing steady hours. >> they're doing momentum either way. >> it's the cheapest because it's got 3% yield relative to cash flow. >> right >> intel i have nothing positive to say about. >> you have nothing positive to say about -- >> nothing. >> really? >> other than the fact that every time they talk they knock down the whole roof. because they're ahead of everybody. >> how about at&t, do you have anything positive to say about them as it's about 4.7%. >> do i have anything positive to say about at&t? >> yeah.

>> absolutely not. >> okay. just wanted to make sure things haven't changed. >> how's jason clar? he was always a really smart fellow. >> he was on last week >> i'm not sure what he's going to do once this deal closes. >> what is he going to do? go make a lot of money. >> go find a job like a lot of people have to. >> one stock that has come public that has maintained the momentum, it's dutch bros. may be the most ti-- what is li the grow cho marks name here, it's dutch bros. they're a play on parking lots >> right >> parking lots with the exception of christmas, they're empty. >> can we eclaim the land and maybe -- you know. >> put up trees? >> just i'm saying this is the stock -- younger people should

be buying dutch bros. >> people who are on the journey versus say starbucks which reports tomorrow. >> feel like you're kind of a little concerned about starbucks. i'm curious -- obviously be curious to see business in china, which we've talked about a lot. the lockdowns continue there it's a country of 1.4 billion people, there are major cities that are not allowing anybody to really go out. >> when i listen to eunice ewe, who's unbelievable, and probably the bravest person currently in journalism, i don't know whether i want to be in line at a starbucks. if you have to report that you bought cough medicine at their equivalent of a walgreen's, don't you think starbucks could be a gathering place where someone might say, listen, i don't know if i want to be there. >> as far as cost pressures go we've got a couple more stores expressing interest in unionization last night domino's will now pay you to pick up your own pizza

because the driver shortage is becoming so acute. >> that's why we need the autonomous so badly. stanley black and decker has a semiautonomous mower, but the future is autonomous mowing. right now if we were to graduate autonomous mowing, son >> autonomous everything >> autonomous shoveling snow can anybody autonomously do that for me >> at least a shovel >> it kills your back. got to be so careful. >> leading cause of heart attacks. >> let me make sure i understand, your wife does the shoveling. >> yeah. why would i do the shoveling >> yeah, i just wanted to make sure i understood. >> she's out there shoveling the snow >> she got one of these snow blowers that just doesn't really -- just blows it into the other guys, and we're friends with our neighbors we had to stop that. i watch the whole thing, and i even filmed some of it. >> do you cheer her on way to go.

>> no, it's just -- >> good one. >> yeah, man, i'm at&t when it comes to snow shoveling. that's a new term. >> it's a new term >> quick reminder here, you can get in on the cnbc investing club with cramer, sign up at cnbc.c cnbc.c cnbc.com/jointheclub. as we go to break, time for the bond report as we've got more commentary from harker daily, bostic over the last 24 hours. yields have been pretty steady not reflecting the volatility in equities the last couple of weeks. take a look at that. also tom brady on instagram announcing his retirement. back in a minute

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welcome back to "squawk on the street," rich san ttelli hee with live breaking news.

we're looking for the current read, the january final read for market manufacturing pmi, expecting that the mid-month 55.0 holds and the number is 55.5, so it did mauove a bit higher that replaces the mid-month read at 55, and it is the weakest read, actually the weakest read final weakest read going all the way back to october of 2020, when it was 53.4 so obviously it was the lowest level for all of 2021, and it really does underscore that there are many headwinds facing the u.s. and global economy that may abate a bit due to supply issues, but it's hard to distinguish, and of course in many ways, the good side, the manufacturing side is going to most likely suffer anyway because services hopefully will make up for some lost ground or goods, solid manufacturing objects were more in vogue

during lockdowns and pandemic. if we consider that we have the isms coming up atop the hour, we'll be able to make some good comparisons, a "ua othndsqwkn e street" will return after these messages

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just hours after saying he hadn't made a decision, tom brady taking to instagram and twitter a few moments ago to officially announce his retirement says that football is an all in proposition. says this is difficult for me to write, but here it goes. i am not goingall-in proposition. he says this is difficult for me to write but here it goes, i am not going to make that competitive commitment anymore 22 years, ten super bowls. >> we will look back, got to see him multiple times and be proud that we saw the g.o.a.t. >> by the way, coming off an incredible season, obviously not ending in a super bowl but what, 44 touchdown passes. and having, you know, one of his best seasons just not a bad way to go out >> bucs were 800 to win next year's super bowl with the bills, chiefs, rams.

and now outside of the top 12, until they got aaron rodgers as their quarterback. >> oh, wow >> he's moody. too moody for me >> moody >> he is, he's a moody person. >> people commentating on the plot running on jimmy garoppolo's. >> at least no one is saying mahomes, he's not going anywhere i don't know, it is interesting, football is numbers. we should never forget in many ways football has resuscitated media. i was with someone who is a prominent advertiser, pouring the money in another person asked me, prominent advertiser saying this is the event we're going to catch people's eyes. we have yount reported the success of the nfl as a way to reach people >> we talked yesterday about the product is probably better than 50 years >> how many years? >> 50. >> i've been not reporting about

it i've not talked about it, i've just been marveling the natural nature of it >> the only way the networks aggregate eyeballs right, if the top 19 out of 20 chose our nfl games. >> i keep telling you if this business, if you do fantasy, people watch until the end of the game >> also betting. >> i said that to bob iger i said, bob, listen, 15 years ago, there's this thing fantasy. he hates fantasy, by the way i said, look, one day people are going to be watching garbage ties oh, i don't know it's true. the greatest game, you have someone go in three touchdowns, a wide receiver. and that is it fantasy matters, i'm actually thinking about saying don't that draftkings is fodder >> that's interesting.

you want game frequency but it's been no match. >> i was one with eddie lambert. and it was all-consuming you were -- like wednesday was the trade deadline, and we were with goldman didn't do any work on wednesday because of the trade deadline. because baseball fantasy is a nightmare. football is perfect. >> what? >> nobody watches baseball anymore. i mean, i'll go. i'll go to the park. but to watch an entire game on television >> no, no. >> let's beat the traffic. my father's saying was let's beat the traffic >> everybody loves baseball. >> you can bet on it now you can bet on every pitch >> the brady news is helpful with the markets pretty stable down about 4 on the s&p. let's get to bob. >> hey, bob. finally out of january, and we have cyclicals leading the way

value-oriented sectors take a look, we've got industrials up today material stocks up today bank stocks doing better energy far and away the market leading, tech stocks lagging, apples, microsoft, dragging it down a bit overall, not a bat stad start to february we talked about the dividends, shining again today. look what happened today, we saw u.p.s., raising the dividends 49%. we've had a number of companies, halli halliburton, linar, wells fargo. ubs said they're going to raise the dividend from 50 cents to 37 cents. that's almost a 3% dividend. sirius announced a dividend on that dividends are a hot topic now, the reason if you're only

expecting 20% returns, not 3% returns, look at what's going on here the current yield on s&p, about 1.4% it's going to be a tad lower you can see the dividend increases announced within the last few days. put up the dividends dividends, 1.4% today. a tad lower once you account for the at&t store but at&t is an anomaly it used to be very rare to see a company with 3% or more dividends. that's now very common 83 pay a dividend north of 3%. 28 companies pay a dividend yield north of 4%. now, why is it happening well, it's happening partly because corporate america is flushed with cash right now. the cash flows are titanic can you see what mobile was reporting, they're covering the dividend and they're doing the capital expenditures all from the increased cash flow we've been seeing. we are going to see record

dividend payouts in 2022 in terms of a dollar value we're going to see record buybacks, we could do $800 million easily, into $900 billion. and there are going to be records. this is all due to the cash flow that's going on and we're also seeing companies outperform that are dividend pairs this doesn't happen very often traditionally, you'll get dividend payers that tend to be value companies, utilities, the spyder dividends, etfs down 2% in january, the s&p 500 down about 5% that's a relative outperformance and good month overall for them. finally, we're in february, a lot of people like to talk about seasonal factors here's the story, february is considered the weak link, a trade that farmers's almanac polarized years ago. the problem, carl, this doesn't

look very well, if you look at as goes january so goes the year, the season indicators, well, it hasn't happened the last two years, down years ago and upyears for the market only been right, 50% for the last ten years be careful, folks, when you're talking about seasonal indicators, carl, back to you. >> thank you, bob. what's up? >> we've got brunswick, part of the problem with the money >> did get an upgraded hog on morgan stanley >> covering the shorts very good call >> u.p.s. all-time high. mad money with jim cramer. when we come back, isms and jolts. don't go away.

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(music changes to rapid funk) - [announcer] ensushiastic. intensely excited over how it looks before discovering how it tastes. ♪ on time, lowest price, or we'll make it right. (chicka-chicka) grubhub. ♪ welcome back to "squawk on the street." rick santelli here with breaking news our december read on construction spending expected to be up 0.6 of 1% comes in way light up 0.2% that is the weakest level since minus 1.1 february of 2021

a very weak way to finish the year, although it's had real bright spots in august and september. for ims, for the month of january, manufacturing comes in at 57.6. 57.6, sequentially, that follows 58.8 which is our december final read and it's a smidge better than we were looking for if we look at the january prices paid, this might be the most awaited aspect of this database. it definitely came in much, much, much higher than expected. we're expecting the number at 67 the whisper number was supposed to be lower. and here it comes at 76.1. 76.1 that is the highest level since august when it was 79.4. and if we look at new orders, 57.9, sequentially following 61.0 a bit plight and obviously lower

sequentially let's finish it off with the employment reports with the jobs report this is very important. 54.5 following sequentially, 53.9, it's better than expected and sequentially higher, maybe that will foretell of better things because the whisper number is coming in light. finally, jolts for month of december 10 million 925,000 jobs opening. the high water mark came in 11.98 million. these numbers are very important in so far as they tell us we have so many more openings than we do people it may be a head scratcher, but it's not a good head scratcher carl, back to you. >> rick, thank you very much rick santelli. good tuesday morning, everybody, welcome to another hour of "squawk on the street.

i'm david faber with morgan. brennan. >> the dow is up 1.4 here's why, we're 30 minutes into the trading session here are the three big movers we're watching one of those dow components, u.p.s. surging, a top performer in the s&p, beating and issuing stronger guidance and upping the dividend by almost 50% delivery giant expects to meet 2022 revenue in march and targets a year early, shares up 12.5%. plus, ubs also jumping after the swiss bank report the its best annual profit it's since 2006. it, too, plans to increase its dividend and increase share buyback. stocks up 6% right now, over 35% over the last year of trading. finally, oil exxonmobil, those

shares are rising as well. earnings topping estimates even though the revenues fell a little short keep in mind, almost 80% up year on year. darren woods was on, ceo, to talk the market results. >> market has been a big help with respect to the earnings performance. more importantly, more fundamentally, it's the work we've been doing back in 2018 and 2019 with significant organizational changes we've made moving in 2020 with the cost reductions we cut strul ctural costs at 201 and in total, $5 billion in structural cost improvement. and the new organization helped us get a better line of sight to the markets becoming more and manifesting itself in the earnings performance

>> of course, that's money on dividends and share buyback, plus investments around cleaner energy technology that the company is making. shares up today, up 25%, already, just to start the year. carl >> meanwhile, s&p seeing the worst since the beginning of the pandemic, the nasdaq worst since '08. here to discuss, joyce chang, jpmorgan's global head of research also with chief investment strategic brent schuette guys, we've been listening to the jpmorgan view. some of the inflation-related numbers could begin to cool and the market would essentially sigh a sigh of relief. but the ism number is not moving in that direction. what is the risk that doesn't play out >> well, i do think there's value that's emerging in the markets right now. if you're looking at the market

cap, some at a 20-year low we've seen the market value but the market is focused on the fed and we are at the end of the qe and rate hikes to begin. in addition to core inflation the concerns about higher energy prices what that could mean for inflation. we have a home price appreciation index up 12.5% this year and there's wage inflation so, some of these concerns are going to be with us. but overall, i think the growth picture is going to hold in pretty well. we're going see some weakness from december and january numbers from omicron but that's going to hit more of the consumption supply we don't see the supply chain issue emerging this time around. overall, the fundamentals are still there, but i do think we're in for a period of shorter and volatile cycles but values emerging and seeing pockets here >> brent, are you of the view that, yeah, we might get short-term volatility? but in the more medium term markets can resolve arising

rate environment, but still aine era of better than gps growth? >> certainly i do think you'll see inflation pull back. current inflation is followed by shifted demand for goods everybody is playing to ism this week and certainly the prices paid in prior deliveries, my first was down a bit if you look at last week's gdp, you are starting to see evidence that consumers are shifting back you've had tremendous goods spending which quite frankly is going to harm the supply chain that is alleviated you saw that big inventory build. i do think you're going to see inflation come off the boil which is going to give the fed a bit more of an easier path and i think you'll see strong economic growth. and eventually, that strong economic growth will pull the markets higher, but on cheaper segments of the market

there are cheap parts of the market, like s&p 500 that trade at 15 times earnings in 2022 that is not just relatively cheap, that's absolutely cheap and that's where i would have investors focus. >> joyce, where would you have investors focus? >> well, i think on the small cap we're seeing here and on the commodities with the russia and ukraine conflict full-scale military invasion, we don't see that as being likely, but the talk of sanctions and controls there could be more upside pressure to commodity prices and there's upside pressure but aren't that many downrisks as well we look outside of the u.s. in total, we see 14 out of 23 developed market rate hikes. once that stands out there's china which is decentralized from the global cycle. putting in moderate easing and the valuations really didn't cheapen over the course of 2021. so we are seeing value here that

we could be in for a period, as we go into what we see as five hikes for the rest of the year where the volatility is something we have to live with >> brent, i'm going what may be a basic question, i don't know, but when the fed goes through a tightening cycle and begins to hike rates to counter inflation which is not something we've seen in a while. how much does it take to move its way out of the market? where the feds have an impact. i ask that i would imagine if it's starting to tamp down inflation from these hikes directly, that that could potentially change or slow the pace of the fed. >> yeah, i think you've already seeing an impact on the market which i think is the question. the fed, the pace in hike increases have harmed the parts of the market that were bid up on excess monetary which is ending i think it started as a rotation towards value in small cap

and people as always, worry that they get more to play. you've seen sentiment fall to levels that we didn't have during the very heart of covid the bullish side of the equation the week before was 21 these are good contrarian indicators, so i do think you will eventually see people come back into equities because that economy will continue along, even with those rate hikes which do have a kind of longer term impact. not necessarily a near term. it could take 12 to 18 months for those to more greatly impact the u.s. economy >> finally, joyce, china is interesting, imf cut their global forecast for the year george soros with this remarkable speech which he argues that xi is in political trouble especially if they can't get their arms around real estate what is your view, in terms of how they are an engine for global growth? >> well, we still think that

china is going to reach the same size before the u.s. economy before the end of this decade even with global growth which we is have coming down 4.9% this year the name of the game in china is stability. they are going to have a communist party meeting at the end of the year, in october. and i think they have put in credit easing measures as well so there is a slowdown in china. i think the first order of the year for u.s. and chinacould actually be the weakest quarter because of omicron but i do think you'll see a rebound in the second quarter of the year we have coming back after going down to 4% coming back more to a 7% handle. the u.s. going below 3%. and then going back to 5% in the second quarter of the year this is like a sandwich. a very strong first quarter and weak second quarter. and then the growth will come back it's about the growth in china and we do think the valuations are compelling and they are against the cycle of the developed countries central

banks right now in hiking mode and the process was started more than a year ago than the central banks that's one thing that is different. >> great discussion, brent, joyce, grateful as always. good to see you both >> thank you >> thank you well, we got news that we might have anticipated given the comments last week that cnbc got with john stanko, the ceo of at&t, namely the way it's going to be disposing of warnermedia is with full spin of that, rather than what had also been contemplated as a so-called split or exchange-off, by which at&t would actually have retired a lot of its shares. imagine it being an enormous buyback. we'll go into the reasons why. you can see what it's doing. there are those in the marketplace who believed they would have some fashion, if not for the entire 40 billion or so of discovery shares to leave some portion of it

no, you're going to get 0.24 shares of warner brothers for at&t and at&t itself gets $43 billion in proceeds, and the second quarter. new news this morning, though, now we know what the at&t dividend, and it's $8 billion a year and $1.11 a share. i did the math came up with a roughly 4.6% yield, to put that in some perspective. but they're not buying back any stock, which, of course, an exchange-off would have allowed them to do again, not such a surprise given the interview last week with the interview with john stankey. take a isten >> as you know, to execute a split, especially one of this size, it would require value leakage to execute that and get the shares placed. i'm not sure i'm a fan of that

value dynamic leakage right now and being second guessed on it i'm also pretty interested in moving through this as quickly as we can. there's some advantages in terms of a spin in terms how mechanically it can be done and quicker it can be done there's pros and cons on both sides. >> after hearing i certainly heard there was going to be a spin what does it mean? why no split, what i heard from at&t and speaking to the compeegs's cfo, there is no precedent. it would have been $40 billion nobody has done that what if you didn't get fully subscribed it would have benefited the risk of investors who had gotten the discount for the discovery shares a significant one in fact, they believed would would be more than wee typically see, more than 10, 12%, 15%. unclear. not going to happen. these seem to be the reasons

why. just the fear of execution now, there are some who are questioning whether this really does mean or optimize the company's capital structure. obviously, without that significant buyback taking place. the high dividend yield that would have resulted from it. they are saying we are going to have $20 billion in cash flow, after we pay the dividend, morgan that will will allow us to compete in a wireless world in an effective way, having that patina they certainly want, although nothing that enormous >> leakage, a lot of leakage in the conversation last week with john stankey value leakage, tax leakage i am curious how this is going to position at&t how does it position warner brothers discovery, versus the other ones on the table?

or doesn't it really matter? >> you know, it does matter of a sense because they're not going to have an additional $1.7 billion shares distributed to at&t shareholders. so, we know -- roughly that could change a little bit, let's call it 2.4 billion shares out of this you can back it into a market value they're going to have an enormous amount of debt, they're going to be as much as five times leverage you do want to do your multiples to enterprise value given the debt mode. but it gives people a sense of what that is worth, it also gives you a sense how long the period may be by which you're a shareholders of at&t, suddenly you're getting 2.4 shares of each share you own of discovery. you may not want to own it the question is how long will it take for discovery share has, morgan, to find a home >> key question, i know that will be playing out in the coming weeks and months and i

know you'll be covering closely. we're going to head to a quick break. here's a road map for the next hour, including yesterday's chip dips plus, the u.s. is pouring money into a land grab that doesn'acalt tuly include land. and good-bye g.o.a.t tom brady, retiring after a few days of speculation. "squawk on the street" is back after this don't go anywhere. vanguard. become an owner.

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venture capital investors have been racing to get a slice of the company's running crypto economy. kate rooney has that story hi >> hey, see the blockchain startup funding that includes any company from nfc startups to decentralize exchanges last month, that group grew 11%. and the dollar topping $25 billion for the first time ever, that was around $3 billion this is generated by what they call mega rounds will $100 million or more and those accounted for more than half of total funding. biggest rounds went to crypto likes nfts and gaming and payments crypto, guys, is very much a global market. but the u.s. was the leader last year, making up 56% of global

funding. within the u.s., new york, coming out as the clearest new york startups got the most investment dollars followed by silicon valley, miami and l.a. tied for third coinbase ventures with 68. au21 and we do get a picture of what the public markets might look like with the potential of ipos three or five years down the road with a so-called boom with the web companies getting into them the structure can be different they are buying cryptocurrencies in addition to equities a slightly different structure there. but the value of some of those cryptocurrencies that they might be buying probably dropped significantly. and they tend to move in sympathy with bitcoin and ether.

those are down 40% from the high stock in november. guys >> kate, it's fascinating, you got our attention with new york ranking as number one among those three, i guess, four cities i wonder why, is it because of the talent pool, the fact that you have wall street folks and financial folks who have taken to cryptocurrency new asset class? or is it policies which new york city has been outspoken about? then again, so is miami. >> it's interesting. morgan, it seems to be most of the dollars going into new york tend to be the exchanges so whether it's one of these decentralized exchanges or just what it would look like for stock trading. a lot of them started in new york, like you said, the wall street talent tends to be there. there's a lot of investment dollars there as well. but it surprises me. you think of silicon valley overall for crypto funding, miami, making noise as the crypto capital, number three climbing the ranks and policy of

eric adams trying to frame new york as the crypto capital of the u.s. and having sort of forward-thinking that has not played into quite yet but that status probably helps them to try to continue the trend at this point >> yeah, got a nice war going between new york and miami, that's for sure, kate. thanks, kate rooney. as we go to break, the movie theater names are going high here after amc reported preliminary results from q4. the company says it has progressed since it has and q4 with gains we're back in a moment, stay with us.

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♪ welcome back to "squawk on the street". cnbc is out with a new flash-fed

survey asking respondents if their outlook has changed following last week's fed meeting. our steve liesman has those results. steve. >> hey, david, yeah, the cnbc went back into the field to see if anything changed from the fed meeting. our response was not quite as hawkish as the future it's market which is pricing in at this moment about five rate hikes. take a look at some of the results here the average respondent is looking for 3.7 hikes this year. which really means three hikes and a debate over a fourth there. the average of funds just over 1% next year, another forecast with fund rate of 1.85% and little support for a 50 basis point hikes. mark zandi of moody's analytics,

investors are pricing in five quarter point rate increases this year. the fed must begin normalizing rates but both the fed are getting ahead of themselves. the average running year over year, declined this year, 2.9 by the end of 2023. the more dovish outlook does come on the belief that inflation will come down another reason which is important here, respondents are looking for more balance sheet the average is looking for the balance sheet to begin running off in july. and to total 440 billion this year that's up from 380 in the forecast before the meeting. that grossed $930 billion the next year, up to 860 and the fed may eventually prove this more hawkish view to be correct but it's also possible that the fed will do much less on rates and a bit less on the balance sheet if inflation shows signs

of slowing morgan >> steve liesman, thank you. it's now time for etf spotlight. we're looking at the vaneck etf. taking a breather, down almost 1% still down double digits since the broader year with the downdraft. one to watch is nxp, despite q4 estimates hiking its dif lend by 50%. down by 1% right now another name, advanced micro devices, amd reporting quarterly reports after the bell today actually, it's higher again, almost 1%. tomorrow morning, don't miss the interview with ceo lisa su, that will kicofk f at 9:00 a.m. eastern. in the meantime, we will be right back stay with us ♪ ♪

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welcome back, i'm rahel solomon and here is your cnbc news update at this hour children between the ages of 6 months and 5 years ago old could be ebel gligible for the vacciny the end of this month. they may approve a series of three doses once enough data is in british prime minister boris johnson has landed in ukraine an hour ago of course, back home, johnson continues to face calls for his resignation in the wake of a report on downing street parties during covid lockdowns roughly a dozen historically black colleges and universities are receiving new bomb threats today. we reported on this yesterday as well the fbi says this morning it is aware of the threat. and is working with law enforcement partners for and it's now official,

after a false start last week, tampa bay quarterback tom brady posted on social media over the past hour, that, yes, he is retiring he collected seven super bowl wins in his 22-season career morgan, he had said previously, it is a family decision and i guess the family has spoken. >> the family has spoken end of an era, you could say, rahel solomon, thank you tech earnings tweak after the bell joining us raymond james equity investor aaron kesler. aaron, thanks for being with us today. what are you looking at from alphabet when we get the numbers, add spending recovery, google cloud and other key factors that you're going to take into account? >> yeah, a strong number of large cap groups still expecting growth, year over year on the quarter. and q2 growth by 30%

and cloud growth today, 45% year over year. so pretty strong growth across the board. and we're also expecting operating leverage as well over the last year or so. and that's made investing more positive from a recent standpoint, i think it's compelling here, and if you do the sum of the part, backup cloud, you can get -- for valuation on the tech side >> it's almost a big tech trifecta this week you have alphabet today, then we're going to get meta, the company as facebook. and then you covered both of those, with meta, what are you looking for with those numbers. >> not as strong as google but looking at growth 20% growth year over year about 10-point slowdown from last quarters. last quarter, kind of a reality

lab, kind of a virtual side, we'll see the results there. so similar to google, we think facebook or meta is fairly attractive 19% earnings on. despite headwinds on the apple privacy initiative still expecting good results we heard more shift in the quarter top of the funnel and we heard strong instagram as well >> speaking of valuation, alphabet and meta. and amazon kicking off as well you do have a rating on amazon too, but it looks like you lowered your target. tell us what you're watching for thursday >> yeah, a little bit slower e-commerce growth year over year on the online sales. kind of the third party sales in the mid-teens year over year we still have a tough comp in

q1, and comp should ease on q2 we do expect it on the strong side on parts of amazon, we're expecting 36% growth and expecting strong advertising growth in 40% plus range and we're pushing back on the e-commerce perspective, as last quarter, we do expect some of these labor costs in the back half of the year, that will remain positive. good advertising growth and e-commerce can start to ease throughout the year. and positive on amazon on the price target >> aaron kessler we'll call that the lightning round. david. okay, morgan the fbi director christopher ray delivering a speech warning about chinese corporate espionage. ammon. >> good morning, the fbi

director ray used that speech from espionage that he called more bracbrazen and damaging thn ever before. the fbi has open investigations right now of the chinese trying to steal technology. >> there is just no country that offers a broader threat to our ideals, innovation and economic security than china. the chinese government steals staggering volumes of information. and causes deep job-destroying damage across a wide range of industries >> he also said the chinese used intelligence officers to target specific information and they obtain it from sources inside these companies, citing a recent case in geh aviation, in which the company was able to stop by an agent intent on stealing advance jet technology. now, guys, despite the advanced

technology that's employed by chinese cyberspies, director wray says they often use a deceptively simple technique for sources inside the united states he said, they just go on linkedin >> eamon, they just go on linkedin we've been talking about this for a decade, the chinese. it seems to ebb and flow a little bit but it hasn't gone away what about the tools we have on this side to combat it effectively. have they improved at all? >> well, you know, they haven't. what the fbi director is talking about is an awareness in the american corporate community people have a sense that there's chinese intellect stuff going on but the vast scale of what's happening hasn't penetrated. what the fbi director was pitching last night was private/public partnership he wants companies to come to them when they get in trouble, just like that ge ave jags case

able to save thousands of jobs they dummied up fake documents they were able to send to the chinese. the chinese in the end, he said, didn't get what they were after in that case but the big question is how many other cases are there that the chinese did get what they were looking for, morgan >> a key question. i know that the defense industry here in the u.s. has been grappling with for quite a number of years, great reporting, eamon javers as always as we head to break, another check on u.p.s., those shares up all-time high actually helping to lift the dow transportation average. we saw a beat on top and bottom line, better than expected revenue for the entire 35% jump in profit. this is boosted by high shipping rate it's and also more demand for more profitable e-commerce and customers driven and also international to a certain extent u.p.s. said it also expected to deliver its 2023 consolidated

revenue and operating margins an entire year early and it did boost dividends. you can see shares of fedex are trading up in sympathy, which is not uncommon between the two results. nonetheless, you can see the veen in that chart over the past year with it. we'll be right back. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 1-800-376-4376. we'll send you our exclusive bond guide, free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds from across the country. they provide the potential for regular

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welcome back to "squawk on the street." it's now time for equity and opportunity series our friend colin joins us now with the look in growth in black spending power, frank. >> hey there, morgan, at least a record $1.6 trillion in 2021 doubling more than 2000. that growth exceeded before the u.s. economy but lagged other ethnic groups. latinos with a 288% increase,

asian with more than 280 rise. and black americans have seen their wealth fall by 18% with the s&p rising 14% and college grads earning about 15% more than nongrads typically, leaders say the community really needs rethink how it's done. >> we got to mastiffly overindex in education the more education you have, the better you do. and whether you're cashing a check or writing one, whether you're working for someone else or working for yourself, the more education you have makes you better off >> i want to see investment in the stock market, instead of hottest new thing, buy the stock of the hottest new thing and that's something you that can pass down generation after generation >> black ownership has fallen more than 2% since 2000.

annually, black families have $300 billion less than white families over to you. >> frank, thanks for that. joining us, david plooney. >> we talked about the promises that corporate america was making about diversity and inclusion and making capital available to a large part of black america. do you think those promises have held >> so, you know, it's been a little chess than two years since george floyd's murder in may 2020 let's start with the good. we've seen an unprecedented level of commitment, both financial and rhetorical to racial equity. companies are talking about racial equity with a particular focus on black americans that create a system that proactively

includes and lifts up black people, particularly economically so all of that is good so, i think there is a need for us to dig deeper about how we got here and how we can prescribe effective solutions. and data is a huge tool for doing that so you know, when companies are looking at both the experience of their employees internally, but in performance of serving communities of color, date did is an invaluable asset that we are just starting to uncover and i also should add we need to disaggregate that data to find out exactly where strengths and opportunities and weaknesses are. >> now, we are entering a period here where lapping physical stimulus and expiration of things like the extended child tax credit are going to weigh heavily on minority households across the country i wonder how you think that conversation is going to go in the coming months? >> that's absolutely right again, i think the backdrop of

2020 and racial equity has given us an opportunity talk and that's what the black alliance is solely focused on creating an economic infrastructure that creates black people -- i'm sorry, includes black people and creates an opportunity for us to build generational wealth at scale which will we've never had the opportunity to do before so that's everything from financial commitments and rhetorical commitments from the financial sector, from corporate america. creating more opportunities for black people to sit on boards. rise up in the company, build wealth that way. but also in the economy. and i think one that we've been talking about action out of the biden administration, out the government, has been the nomination of three new federal reserve -- members of federal reserve board of governors and there have only -- i'm sorry, three black federal reserve governors throughout history. there are two on the slate of three up before the senate banking committee this thursday. and, you know, what that

represents to me is a recognition that we need to have a different level of lived and professional experience. and that prospective add tut, how we are setting our banking policy, setting our banking regulation but also how we're looking at employment and experience of different people in america, particularly black americans, but all americans of creating an inclusive and sustainable economy. i know we know citi put out a report in the fall of 2020 if we were to close the black/white wealth gap, we could have $5 trillion in gdp. and how welost mayor daley - the president of the san francisco fed was one of co-authors the report showing the u.s. economy has lost $51 trillion in lost output. there's a recognition if we fix the structural problem it's in black economy it is absolutely a necessary component to the growth and health of the entire u.s. economy >> right you mentioned the fed nominees

that's a key part of this conversation but so is scotus to some degree. and the president'spromise to name a black woman as a scotus nominee. there's push back on that, do you think that's exclusionary against the goal that you set? >> that should not at all. we should talk about the history, the roll that plays in history and the role going forward. so we absolutely need the perspective of a black woman in the supreme court for the first time in history. i applaud the biden administration for making that promise and following through with it. there's much more representation needed on the supreme court and every american institution we have seen a multitude of reports that have shown the net benefit of having more diverse represented in leadership and decisionmaking and we absolutely need that on the supreme court. i would say it's way too late to have this conversation but

better late than never >> we said we would hold those companies that accept those goals accountable in the years to come. we're certainly trying to do that, david. good to see you. >> thanks for having me, carl. >> by the way, you can join us for cnbc equity and opportunity. not just for the workplace but society as a whole you can register and attend at cnbcevents.com coming up on "tech check," we'll do a deep dive on the gaming space sony buying halo, $3.6 billion. the "times" buying wordle for a smaller figure that's coming up in ten minutes. we'll be rhtacig bk.

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tonight, standoff at the blo border inside talk with the foreign minist

tom brady official ly announcing hisry t retirement a days of speculation. joining us our sports reporter, jabari young we're all -- well, not all of us, but some people saying, now what is he going to do he has a lot of businesses he can fall back on. >> he has a lot of businesses, including the one that he and his wife just took over in the crypto platform. he is well integrated in that community, in block chain and

crypto you know, a lot of endorsement opportunities. a lot of brand opportunities, the tb12 brand, he'll grow that. he is going to do just fine post retirement michael jordan and kobe bryant, guys who stepped off the court, out of the sport, and still evolve in business shaq is another one, right tom brady will be just fine off the field. it's just, i think, the nfl is going to miss him on sundays. >> >>-- tampa and what you thin it means in terms of talent lineup and potential rising star quarterbacks. >> listen, when tom brady retires, he's notgoing to stop the show, right? the nfl was well on its way to eclipsing $20 billion before the pandemic hit you know, you take a look at, you know, the games over the last few weekends, right the kansas city chiefs and the buffalo bills. josh allen versus patrick mahomes. that generated 51 million people to tune in to watch the game

the talent is there after brady, but how is the nfl going to appeal to the casual fan, the guy that turned on, the girl that turned on the television just to see tom brady and the patriots over the years and now the tampa bay bucs the last two years compete. you might lose the casual fan, but the nfl is well in position. they have a great talent of quarterbacks they're coming behind tom brady. listen, they just signed the $100 billion television contract, right? the media networks certainly believe that the nfl is poised to continue with life after tom brady. it is, again, we're going to miss him on the field, unless, of course, you're the atlanta fa falcons. you won't miss him at all. >> jabari, people are going to parse brady's statement, and they have been all morning long. but no mention of boston, really, or the patriots or belichick. even goodell and his statement says he inspired fans in new england. what do you think that's about >> you know, to be fair, he did retire -- well, not retire -- he left new england when he left new england and

signed with tampa bay, he put out a great statement and thanked the fans the last two years, he's probably grateful for the embrace of tampa he went down there and won a super bowl without bill belichick. i think that was one of the goals when he left, to win one without belichick. he did he left new england and won one without him. they had their moment in the sun. they had the thank you from tom brady. leave it to tampa bay fans, allowing them to enjoy this. i'm sure tom brady will say thank you to new england, as well. >> it'll be fun to see what chapter he builds next because he has tons of options, as you well said, jabari. thanks. >> be a politician who knows? >> we'll find out. let's get to the sector sort hey, dom. >> stocks are lower but there is notable action consumer discretionary secretory. the travel and leisure edition, including names like you said over here, carnival cruise line, norwegian cruise line, royal caribbean, extending some of the strong gains we saw from

yesterday. now all narrowly positive so far this year. elsewhere, check out the casinos, caesars, mgm, firmly in positive territory las vegas sands up almost 20% in the last four weeks. there's more ahead on squawk on the street. don't go anywhere. >> announcer: sector sort is sponsored by sector spider etfs. i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee?

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welcome back just a quick check on the markets as major averages hover around the flat line dow ever so slightly higher, up by 36 mopoints s&p basically flat nasdaq down 0.02%. tech check" s starts now. ♪ >> good tuesday morning. welcome to "tech check." today, the nasda posting back-to-back days of 3% gains. if stocks rally, three-day win for the nasdaq