as stocks like alphabet and amd are getting a strong boost from strong quarterly reports and a bombshell lawsuit in the nfl. a fired head coach accusing the nfl of racial discrimination says things are run like a plantation. and elon musk defending his words for if first time. it's groundhog day, february 2nd, 2022. "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc i'm zbikky quick along with andrew ross sorkin joe's off again today. we're watching what's happening with the u.s. equity futures

for all those who have been waiting, this is your day. check things out the s&p is up by 35, the dow by 55 the nasdaq up by 212 points. that's a huge percentage gain, much bigger on a point basis but a apartment basis, and the dow and s&p too. a lot of it comes from google and alphabet, what we heard last night. take a look at the major indices yesterday. there were some big gains too. dow was up by 273 points that was a gain of three-quarters of a percent. nasdaq was up 603 and the s&p up over 30 points if you check things out this morning in the treasury market you're going to see the yields have hung in and been steady with the ten-year yeielding.

yesterday wti settled at its highest level since october 2014 that's meant huge gains for the energy sector. if you check it out year to date, that sector up 22%, more than 23% in the gains we've seen in the first year. andrew >> i was going to say, becky, i know today is groundhog day, but it does not feel like groundhog day at all, given it's like -- it was like groundhog day for the last two weeks >> in terms of the same story? >> same day, same thing. >> same story in the markets. >> red on the screen, same story, the red is doing this today's like a totally different situation. >> maybe this a s a good sign the groundhog won't see a shadow today. maybe we woen get another six weeks of winter. we'll see. >> one of the things changing that ground hog day narrative is

alphabet google's parent company earning $30.69 in the fourth quarter beat expectations. revenue grew at 32%, also beating estimates by a wide margin ad revenue came in at 61 -- $61.24 billion that sparked some immediate speculation about its possible inclusion potentially in the dow. obviously when you start to split stocks you get a whole debate about whether splitting stock really matters, whether it's a mathematical situation or engineering. nonetheless, a lot of people are very happy you can see it on the screen. >> the speculation is what would be included the dow. there are so many index funds that would have to copy it

that's why you see the big surge. good numbers across the bore but if alphabet were included the dow, that would automatically include buyers trying to track the performance. that explains the 10.6% jump the big question is who would it replace in the dow. >> you know, you could take your pick i don't know who don't you like these days? >> it would have to be a technology presence. i assume it would be some consumer that comes into this. but you would assume it would be targeting one of the dow components that has a heavy focus on technology. >> but the problem is that everybody is now a technology now, don't you think >> yeah, yeah. >> that's sort of the thing. i don't know who you'd -- would you take ibm off your list >> i don't know. i don't know how they would size that up especially. >> i mean, it's a different type of business though. >> it is. >> that's more of an ente

enterprise-style business. i'm wondering who you would remove you're going to keep the sales force. i might vote for ibm i know folks at ibm won't like to hear that how do you feel about cisco? >> that's a good question. you're right a different business from that too. routers following that cloud computing huge too it's something to think about. that's where the speculation is going to -- >> yeah. a fun little game to play. >> it is. >> it's not fun and games because there's a lot of money riding on it. >> right i'm sure other companies are thinking, hey, don't look here f. we want our spot secured we should tell you about another tech company soaring today that's shares of amd the chipmaker posting earnings of 9.2 cents a share revenue jumped 49% year over

year and that also beat expectations, and the company is forecasting 2022 sales growth of 31%. that was much higher than analysts had been expecting. the ceo lisa su said on the call the upgaming cycle for gaming including xbox and playstation is outpacing all prior generations and amd plans to close its exhibition after receiving regulatory approval from china lisa su is going to be joining "squawk on the street" coming up in the 9:00 hour in a first on cnbc interview the stock is up by about 11%. however, paypal shares are plunging this morning. earnings came in just a penny shy of estimates the current earnings forecast was well short of what the street was looking for the street had been looking for $1.16. the ceo dan schulman said it's hiding some of the underlining

strength of its business schulman also said weighed on consumer spending and it hurt cross-border spending including china. that's interesting inflation is hitting consumer spending that's the first time i recall any big company talking about that because to this point the consumer seems like it's been incredibly resilient, and i just wonder where geographically they're starting to see that and why they think that is. >> i thought that was a fascinating point. the other thing not raised in this quarter but something that i'm starting to think about is, you know, as there become as larger discussion around digital dollar, what that ultimately does to a lot of the fintech companies, the paypals, the stripes of the world that were actually capturing some of that margin this goes to the credit card company as well, of course paypal is sitting in the middle of that and what happens if there is a digital dollar? i assume that a lot of that

margin gets compressed as sort of a long-term potential headwind. >> perhaps maybe that's why you see them moving into so many other business as a way to kind of make up for that too. >> we will see talk about a little bit of margin compression this was a cost story. starbuck shares. they're under pressure earnings, 72 krenltss per share, missed estimates of 80%. they beat the estimate -- by, i should say, $100 billion the company's at higher costs. this is stories we're seeing across the board it's cutting its earnings outlook for the 2022 fiscal year and ceo kevin johnson saying he expects higher inflation for the rest of the year and says supply chains continue as they look at more price hikes after raising prices in october and january, and johnson's going to be seeing the gang on "squawk on the street" in the 9:00 hour in the first on cnbc interview. and that's going to be

fascinating to see what he's thinking how much are you going to pay for a cup of coffee at some point -- >> i have gotten used to making it myself. i'm bringing it in myself. i'm making it. i've been doing it for a few years. i've got the espresso machine. it makes really nice of cappuccino i'm kind of cool with that. >> have you noticed i'm an espresso fan as well the prices have gone up on the pots. >> i didn't notice that. it doesn't surprise me it doesn't surprise me i don't do it for the cost aspect but the convenience factor i can do it at home and run out the door and not worry about anything. >> that is true. >> you know, we were used to kind of getting starbucks every day. i'm used to making it myself and bringing it in, and i've got a great mug that keeps it really nice and warm. this is that story though, this idea of inflation. i was thinking of carlos gutierrez who joined us last week, the former commerce secretary who used to run

kellogg's. he worked down in central america when there were inflation costs. i think it was mexico where inflation was anywhere from 60% to 100% on an annualized basis when you're a ceo, you have to keep up with that and do price hikes every month. he was saying the ceos today have never dealt with this level of inflation, and it's a whole different way of trying to maneuver things. if you're planning your costs and balancing your budget based on the costs you're seeing right now, you're going to have a real problem. you have to start rolling these hikes in more quickly, and that's when you start thinking about the inflationary spiral. it makes sense from a company perspective to do that but if ceos are raising their prices, it is a chicken and egg story, and it becomes a self-fulfilling prophesy at some point. if you're raising prices to deal with the higher input costs you're anticipating, it's going to keep spiralling. >> that it is, that it is.

let's tell you what's happening at general moer tos this morning if we could. the company reporting fourth quarter earnings of 1.35 it beat expectations of it guidance for the full year in line with expectations ceo mary barra wrote in a letter to share holderers, she's expecting earnings to be at or near record levels, so another beat there it's a fascinating economy, almost a tale of two worlds. >> it's who can raise prices and who can't. guess what gm can stick out their cars. the cars they're putting out there, there's no discounts putting on any of these things they're producing more of their highest margin models because if you have to choose which ones to go for, that's what you're going to do. people are needing new cars, and people are paying up and paying up in a big way. it's who can raise prices and who can't. anyway, when we come back this morning, we're going to

talk more about the fallout of spotify and podcaster joe rogan. several more artists pulling their music from the platform. right now, though, as we head to a break, check out the percentage move in the stock future this morning. dow futures up, but just by a little bit 39 points. s&p futures up by about 0.6%, but the nasdaq up by almost 200 points that's a gain of about 1.2%. again, that's real strength with google's numbers you're going to get facebook's numbers later. i know they're changing their name alphabet last night, meta. it's going to take time to get used to all of these name icanges. stk around you're watching "squawk box," and this is cnbc depends on different networks, different devices and different ways of working. so how do you manage to keep everything together? cdw can orchestrate a cisco sase solution or secure access service edge.

converging security and frictionless connectivity in one cloud based approach. so your dispersed team feels closer to home. for a unified hybrid workforce, trust cisco and it orchestration by cdw. people who get it. 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. ♪ ♪ 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

as a business owner, your bottom line yeah... oh. don't worry i got it! is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable nationwide network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™

the spotify fallout continues. graham nash following his former bandmate neil young and removing music from the platform. and another has pulled out after dropping last week, the stock has since rebounded, up by 2.25% right now. joining us to talk about it is joanne lipman. she's out with a new op-ed about spotify in time.

joannne, spotify is about a free issue. >> spotify is a much bigger problem than joe rogan at this point. and the reason is it's frying to fall back on the free speech issue. dan ekman came out and said we don't want to be content censors. but the fact is they're not content censors. no one is asking them to be content censors. it's a total straw man situation. if you're publishing this information, you need to be responsible for it it's a free speech issue at all. the real problem we come down to is what is spotify and this is a problem that goes well beyond joe rogan. it's positioning itself by suggesting that it is some sort of neutral platform. we have creators

we want them to have creative freedom and, therefore, you know, we're sort of hands off, right? but, in fact, when you look at the joe rogan situation as you all know, they paid him a reported $100 million to have that content so they have aligned themselves. they're paying for the content there's really no daylight between spotify and joe rogan. they are one and this is where they really, really get into trouble. they're not some sort of neutral platform they're not some sort of phone line and the reason i wrote the op-ed in "time," they said, you've been an editor in chief in some places if you're paying for content, what is your position? and the fact is that anybody in our business, becky, anybody whose's publishing, putting out content, it would be insane, it would be ludicrous for us to suggest we're going to pay this huge premium for content that

would be our billboard content, and then on the other hand, we're going to say, we really don't have any responsibility for what they say. >> this is very different than we're just a billboard or we're just a posting service they have all kinds of podcasts that they allow to be put up this is like facebook where people can post any kind of content they want. they're not getting paid for it. but if you're getting paid $100 million, this is a different story. you can see the controversy with whoopi goldberg and the comments she made about the holocaust they're in bug trouble and that's why she's been taken off the air for two weeks. >> that's right. they're paying her she's representing them. by the way, i think the reason this goes beyond spotify is because if you look at these other platforms that have always said, well, we are just the conduit for people to communicate, right, facebook, snapchat, tiktok, instagram, all of them have started in one way

or the other also paying for content creators, and that, again, you know, this hasn't been tested in the courts. this really hasn't been navigated in a way that we really, really need to address because there is now this sort of creep where these supposedly neutral platforms are getting into content, paying for content, and publishing content, which is a whole different ball game than simply being a neutral conduit like a phone wire. >> joanne, i don't disagree with you, but there's a complicating factor here, which i don't know how to think about it. there's two things on spotify. one is they're paying joe rogan wh wrogan, so they're a broadcaster they're also paying for music. maybe we get into a first amendment issue. i don't know how you want to

think about it i don't know how many of those songs are explicit or say things that are -- i can't even fathom half the things that are said today in some songs. where does the responsibility lie if that's going to be the case and if you're going to allow for that kind of dare i say creativity in terms of some of those -- in terms of some of that music, does that then extend in a different way to that podcast situation >> that's a good question. it goes to the other point i want to make in this time piece, which is it sheds a life this is much bigger than rogan it sheds the light on the other content that is on spotify and some of it is, as you talk about this objectionable music and their licensing, that content, someof it is with other podcasts but if you look into it and a

number of journalists have been digging into spotify, it gets really ugly really fast. you've got -- >> joanne, let me make it more complicated for you. apple, which has a halo around it, obviously running a podcasting platform. now, they're not paying for the podcasts in the same way or apple music i mean, go down the line, and then the question becomes are you the platform or not? and this becomes -- that's why i'm saying people will make the argument it's a slippery slope the question is where is the line. >> yeah. great question it is a slippery slope, and i don't think we have figured out where the line is, which is the entire point here, which is these platforms that started out essentially saying we're nothing more than a phone wire, have increasingly gotten into content

-- either content creator, licensing content, paying for content creators, and we have not kept up in terms of how do we regulate them, what category are they even in, and that's why i say this whole issue with spotify, it's way bigger than joe roigen it's just opening this can of worms that we really do need to address. >> it's a long time overdue, looking back, because i think the original decision goes back to compuserve, when they were literally bulletin boards, 1983-'84 obviously media has changed enormously and joanne, thank you. it's great to see you. >> thank you take care. we're going to tell you about another bombshell story, a bombshell lawsuit rocking the

nfl this morning why one head coach says the league is legally segregated and is run like a plantation take a look at electronic arts, missing estimates and guidance for the current quarter. also fell short. th sck oattoff about 2% this morning. we're coming right back. >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. ♪♪ ♪♪

need to get your prescriptions refilled? capsule pharmacy can hand deliver your medications - today - for free. go to capsule.com. we handle your insurance. all you have to do is schedule delivery. go to capsule.com to get started in 15 seconds today. ♪♪ giorgio, look! the peanut butter box is here. ralph, that's the chewy pharmacy box with our flea and tick meds. it's not peanut butter. ♪ the peanut butter box is here ♪ i'm out. pet prescriptions delivered to your door. chewy. 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? workday. the finance, hr, and planning system for a changing world. ♪ a bombshell lawsuit in the nfl. brian flores, who was fired as the head coach of the miami dolphins last month, filed a class-action lawsuit against the nfl and three of its teams accusing them of racial

discrimination flores alleges that if nfl is rachelly segregated and in his words managed much like a plantation, alleging the 32 owners, none of them black, profit from the player, 72% of them who are american. the nfl disputes the claims and plans to fight the lawsuit steven ross offered to pay him $100,000 for every loss because he wanted the team to tank when flores refused he was cast as, quote, the angry black man who is noncompliant and difficult to work with, resulting in his termination as head coach flores also alleged he learned last week in a text exchange with patriots coach bill belichick that the new york giants have moved forward in hiring brian daboll who's white before flores had his interview

with the team. currently only one head coach in the nfl is black. >> it's a remarkable lawsuit you know, you look through some of the commentary this morning probably -- and we'll see -- a challenging suit the bill belichick texts are real and really raises questions about the rudy rule that the nfl has put in place and a lot of other companies to try to help diversify their staffing, which is to say that for every job, there is at least an effort and an interview to be had for quote, unquote candidates. here you have a situation where they'll affectively pick the person they want, who is white, at least that's what it appears to be the case from the text messages, and yet they haven't

even interviewed flores. he's then being interviewed almost after the fact, potentially at least, he's arguing, to be compliant with the rooney rule. so i don't know. i don't know it does raise questions and there's lots of questions about race specifically in sports but maybe especially in the nfl. >> yep so meantime we're going to talk about elon musk which is a fascinating quote defending his secured tweet in a view by the "new york post." musk said saudi arabia had agreed to fund a 2018 buyout of tesla. he lays out his version of events leading to this tweet of october 17th, 2017 he said, am considering taking tesla private at $420 funding scured i remember that moment as if it was yesterday because i remember

looking at twitter and thinking, really musk said his discussions with the saudi arabia sovereign wealth fund had led him to believe that funding to take tesla private was secured, and as a result when he tweeted that, he was not defrauding investors. in the wake of that tweet, the s.e.c. charged musk with fraud, leading to a $20 million settlement, his stepping down as chairman and his tweets be vetted by lawyers. it became part of a class-action lawsuit by tesla holders who said their stock rose and then plunged in the immediate aftermath. since that tweet, tesla shares are up more than 1200% of course, it makes the lawsuit a bit more complicated i do -- >> 420 you can't even see that from here. >> i believe he made a similar defense claim to the s.e.c. at the time, and, of course, he did settle so i don't know.

>> i was thinking about that too. a $20 million fine he's the richest man in the world. >> he said, you know, you may think that you have the funding secured, but that is not an actual contract. that is not some kind of document that says that this is like an -- you know, a signed, sealed, and delivered thing. >> right. >> so it's one thing to have an email or some kind of document, even communique from someone saying i'm interested in doing this or we're planning on doing this with you. that's different than having an actual agreement. >> yes at the time, it was a pretty big deal a wild stock move, long before it was worth $420. again, looking bat, $420 and $20 million for elon musk, that's nothing. by the way, andrew, i wanted to mention i talked about compuserve and lawsuit it wasn't '83 or '84 it was 1991. i looked it up i thought it was longer ago than

that it tells you you're going back 30 years to when these decisions were being made and think how technology has changed. >> you're talking about a platform and who's responsible. >> they couldn't be held liable for anything that was posted because they weren't doing anything to kind of scan or see anything that was being posted they were literally an online bulletin board they won that case, but clearly the situation you're in today is clearly very different where you're paying someone to put that content of. you're much manufacture or a publisher and much more responsible for what they say. anyway, when we come back, general motor shares rising. wheel dig into the quarterly report the guidance and comments from ceo mary barra that's coming after the break. the stock this morning trading at about $55 let's take a look at yesterday's winners and losers

>> announcer: executive edge is sponsored by at&t business, keeping your business connected. s need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone. inner voice (furniture maker): i'm constantly nodding... ...because i know everything about furniture ...but with the business side... ...i'm feeling a little lost. quickbooks can help. an easy way to get paid, pay your staff, and know where your business stands. new business? no problem. success starts with intuit quickbooks.

jien vesters reacting to quarterly results. let's get over to phil lebeau. the stock is up this morning. it's up because of better than expected results. the guidance was very encouraging, better than any

analysts were expecting. let's look at the results and the expectation. they beat the street, a buck 35 versus a buck 13 gm expected to adjust between 13 and $15 billion this year. the consensus was a little under $13 billion. when you look at that number, you say, okay, you're going to have increasing volumes up anywhere from 20 to 25% as the chip supply improves, and you're also going to be seeing the company look at where do they go from here. by the way, they have decided for now, they're not reinstating the dividend why? because they're plowing more money into electric vehicles, and the company yesterday talked at great length about what the plan is when it comes to ev investments. remember, they've already committed $35 billion through 2025 last night they said they're going to accelerate and increase that investment. they haven't said how much, but they're going to be doing that this year. that includes pulling forward plans for a third electric truck

plant. they're going to be naming a location relatively soon, also adding a fourth ev battery plant. then there's the chevy silverado ev remember, it was a little over three weeks ago they unveiled the silverado ev they said, look, we're opening up for reservations. how many have they collected in less than a month? 110,000. skeptics will say, look, it's $100 refundable. a lot of folks put down that kind of reservation. but that indicates there's strong interest in the siller er rah doe ev remember, that starts next year. but this is the ramp-up. this is the big volume vehicle that's going to be the linchpin. that ramp-up is bind them saying they're going to selleck trick vehicles in 2022 and 2023. we're talking about a big

ramp-up in terms of ev vehicles. we'll be talking with mary barra coming up on "squafirst on cnbc. it's why they believe why they're prime aed for this growth over the next couple of years. >> hey, phil, i think what's really interesting is they're going to keep the dividend suspended. tesla never invested in the div dividend obviously if gm wants to compete with them t, they have to do something similar. they took the pain at the beginning of 20. >> the beginning of the pandemic. >> figuring they already dealt with the investor base maybe this is the wave of the future this is really interesting that

these legacy companies have to operate a lot more like a new company if they want to be able to compete. >> but the flip side is, becky, look at ford ford still has the dividend. that dividend is in place. so it's a matter of how you believe you need to approach it in terms of the cash that you are generating and having on hand and for now general motors has said, you know what? we're putting that into our ev and autonomous vehicle investments. >> great to see you, phil. thank you. >> okay. coming up on the other side of this break, a closer look at this morning's biggest earnings movers, including a very big one that's happening right now for google parent alphabet we'll talk about it next plus the senate banking committee holding a hearing on president biden's fed nominees that's happening tomorrow. we're going to talk to senator patoeyod f h te t om tayorisakon the names. you want your data to be protected and secured. and your customers want seamless and easy.

with ibm, you can do both. your company can monitor threats across your clouds, address all those regulations, and still create all new experiences. trustworthy ai powered security. that's why so many businesses work with ibm. movers, including a very big one movers, including a very big one

welcome back to "squawk box" this morning tech is in focus as we're getting report cards from so many big tech firms. alphabet reported earnings that beat expectations, the stock now soaring up about 10% still to come, though, are reports from meta, qualcomm, and amazon as meta focused on earnings, broader markets have risen, nasdaq up. is the tech route over i mean we go from one extreme to

the other. joining us right now is our markets reporter and cnbc contributor. i'm sorry. i'm curious, how do you think the investor class has shifted is it like that, this light switch, this google news comes out and everybody says it's over that doesn't make sense to me either. >> you know, i think you put it the right way. it's really one extreme to another. we saw such a violent rotation into, you know, banks, financial companies and energy companies at the start of the year in january. the companies are making gobs of money. one thing stood out to me last night, and that is alphabet's annual profits rose by, i think,

$36 million. that's more than visa and goldman sachs combined i think all of the investors shifting into the cyclicals, it make use ps you pause for a sec >> greg, is this a sea change? it's so crazy. for the last three weeks we talked about earnings didn't matter, frankly, and this was a fed story and rerating multiples story. >> you know, earnings have always mattered, and only some of the tech companies are making gobs of money. what i think you'll see as we get off of this wave of spectacular earnings and the tide lifting all boats is investors will start to focus on the boats that actually should rise because we are at a rising interest rate environment. we know that does hurt on profitable growth, growth companies who need to borrow and some whose growth is speculative.

but the googles and microsofts and a&ps of the word are not that they've put up spectacular numbers. they've given us growth. we'll separate the wheat from the chaff and i think investors will start to recognize that and we'll see growth narrow in this tech trade. >> greg, specifically on alphabet because we've got the stock on the screen right now -- it's up about 10% -- in large part it's not just the earnings themselves but the stop split. it's not just the stock split, but in this case it's the speculation that stock split is going to put google or alphabet into the dow is that worthy speculation >> so there's another component as well, andrew. i think it is worthy, but what's also going to happen is that decreasing the actual visible stock price makes the purchase

more palatable to those who don't have the institutional packets. so will there be an insti institutional increase it makes it affordable in the eyes of some as i pointed out, google is one of the winners it is enjoying some fundamental and secular tail winlds here it's giving us a lot of expansion given the predictable hiring and h.r. costs. it still grew in its key segments, over 40% even youtube which some people quibbled with produced more advertising than netflix, so it has fundamental reasons why it's going to prove to be a safe haven as it continues to power through in quarters. >> i've got to go back it's a cliche of a conversation, but, you know, all these people who say, look, the stock has

split, it's now more affordable, there's some of us who say, can you do math? and the other part of this -- the other part of this is in the day and age where apparently people can buy shares fractionally, it makes no sense. it shouldn't matter. it really shouldn't matter >> it shouldn't, but they about tesla's stock split. did that lead to a rally in the stocks for some reason these splits do seem to play a role, though, it's definitely head-scratching at the moment. >> gunjan and greg, appreciate it look forward to seeing you very, very soon. >> my pleasure. when we come back, we're going to talk about a new etf offering in the digital finance space. "squawk box" will be back after a quick break.

welcome back to kwauks announcing today the launch of a new fund it's an etf called the grayscale

future of finance. it was created to track the performance of their index with bloomberg which invests in different aspects of the digital economy. michael, it's great to see you i want to try to understand what this fund is and what you're putting together but also and perhaps you can speak to this strategically you know grayscale has been trying toeffectively allow as much of the public as possible to have access historically to crypto, bitcoin and the like and how this differs potentially from that. >> absolutely. well, andrew, great to see you and great to be here grayscale future finance etf ticker gfof is a new etf that wants to give investors to the broadly defined digital economy. what we think about what grayscale has done over the last decade it's been about enabling investors to access digital currencies, and this new product opens an entirely new category of thematic investing, giving

investors the ability to invest in the infrastructure that's really reshaping financial services over let's say the next decade so we think this is a complementary offering to the exposure a lot of lot of the nesters have come to know grayscale for and it's not a bitcoin replication product. >> michael, give us a sense what's in this index >> well, the index really breaks down into three pillars. the companies are broken down into financial foundations, technology solutions and digital assets so there are digital asset components here as well, but this is, in fact, an entirely new category that does look at companies that are actually at the intersection of technology, finance. >> what companies -- name some names. >> so it does have companies in it like coin base and block and others as well as digital asset minors but overall these are companies thinking about the infrastructure underpinning this

rather than just a pure bitcoin or digital asset play. >> and so are their fin techs in there, for example are you going to see the paypals of the world in something like this >> yeah. over time we believe that this index will include the companies that are providing the underlying infrastructure over time and are actually taking that more proactive stance to how financial services are going to shape over the next decade. >> is microstrategy in there >> it's not. so notably absent in the way we design this product was to exclude companies that are holding bitcoin on their balance sheet as well as some of the plays that other investors have sought out, things like semiconductors, those companies that are creating products that are really enabling, for example, chip makers for digital asset mining >> michael, given that you live at the intersection of both crypto and maybe the future of finance and i don't know we could probably figure out what that intersection really looks

like, i have a different question for you because becky and i were talking about paypal and their earnings. when you start to think about a world where the federal reserve might adopt a digital dollar, if that actually comes to pass, does that just wreck a business like paypal? does that wreck so many of these businesses because it just compresses the margin almost down to nothing? >> it'd be tough to say the direct impact on paypal directly i would instead zoom out and say the emerjance of a digital dollar or a federal backed digital asset, we actually believe creates a tail wind for investors to think about decentralized applications so companies like paypal and others are already including decentralized protocols on bitcoin and others in their business model and certainly shedding light on the use of digital assets we think is a factor that does give investors

more comfort but tough to say exactly on the exact business like paypal -- >> maybe not paypal, but wouldn't you argue a digital dollar could crowd out other crypto in some regard and secondarily completely crowd out margin because that is the business currently >> i totally disagree with you, andrew not crowding out but instead actually shedding light on the usage of this technology it would almost be an enablement factor here to look at the underpinnings of block chain technology and shedding light on the difference between federal and fiat backed assets like bitcoin. it is about creating a more inclusive more equitable financial system, and so the more that we see adoption around this, the more those ideas pervade investors and users. >> it is a longer discussion and always a great debate to have

with you, michael. as you know we're all fascinated we're all just trying to understand so thank you. thank you for helping us this morning. good luck with etf when we come back we're going to take a closer look at today's biggest earnings movers including that big jump you're seeing in alphabet shares, and paypal shares they're down we'll talk about that next right now as we head to a break you're looking at a live look at gobblers nob in pennsylvania that's where punxsutawney phil will determine the next month or so of weather, maybe next six weeks. will winter persist or are sunny days ahead happy ground-hog day, everybody. we'll be right back.

. nasdaq futures surging on strong quarterly reports from both alphabet and amd. a break down of the names on the move that's coming straight ahead plus the president's picks for the fed. senator pat toomey joins us ahead of tomorrow's big hearing. he's been critical of the nominees we'll find out why and a lawsuit rocking the nfl as one former coach accuses the league and three teams of discrim nakz and racism when it comes to hiring. the second hour of "squawk box" starts right now

good morning and welcome back to "squawk box" right here on cnbc. joe is off today let's show you u.s. equity futures on what is ground-hog day but not necessarily feeling that way today looks actually up for the first time in a bit. dow up about 25 points, nasdaq up about 207 points. s&p 500 up about 37 points i want to get straight over to dom chu with a look what's moving this premarket. >> the nasdaq really kind of the driving force for some of the market sentiment and for good reason the nasdaq has been the epicenter arguably of a lot of volatility of late alphabet, it'll be what propels the bulk of what's happening certainly within the nasdaq 100. those shares up right now.

amongst other things a beat on earnings and a bate on profits and everything else about the advertising business that alphabet could indicate there's going to be 20 for 1 stocks put on that particular stock so we're talking about roughly $150 theoretical per share basis there. so 3,000 goes to $150 a share roughly. 10% gains for alphabet, big force behind the nasdaq this morning. also watching what's happening elsewhere with the earnings story. on the flip side of things you have to see what's happening with paypal right now because it's down roughly 17%. at this pace if these losses hold into the opening bell and then throughout the close of the day this would be the worst day ever for paypal since its split from ebay back in 2015 those shares down not so much because of a mixed result in profits and sales reported on a quarterly basis but because the forecast for current quarter and full year financial results fell below some analyst expectations,

questioning some of the growth aspects there. and analysts others going to downgrade that stock today so watch those shares of paypal. also watching what's happening here with another big name coming out and that's general motors, more traditional, consumer discretionary up about 2.5%. a more mixed picture here. profits exceeding expectations, revenues coming in with a slight miss, but its full year operating forecast coming relatively in line with analyst estimates. after a one year general performance for general motors up about 2.5%. generally in line better than expected overall with humanna. we're still waiting for a trade there so watch those shares. >> dom at the domino thank you, sir >> you got it. after being distracted by wild volatility in january investors can focus on earnings from the mega cap bellwethers

this week. joining us now to talk is stephanie link, chief investment strategist at high tower and obviously google the one we're watching so closely. you sold your shares in alphabet recently regretting that since we've seen the big pop? >> well, of course i regret it up about 10% look, the quarter was really good, it was really strong but what i did do, becky, i did sell google but i put it into facebook because i think the risk reward of facebook is much more attractive, at 20 times you're going to grow about 20% i do think with google's numbers you can think hopefully facebook will have a good number tonight especially looking at the ad numbers from google. they beat expectations about 1%. search was also very good, cloud was on the line. my only thought was it was up

65% last year and i made good money. and my good friend jim cramer said never apologize for taking a profit >> don't get greedy with it. obviously the numbers were good with alphabet, but how much of the pop today was for the quarter and how much was stock split and speculation as a result might end up as a dow component? >> i actually think a lot of it is -- most of is the split the google ad was good, search was good, cloud was in line, youtube actually missed and free cash flow was also in line so there are puts and takes to the quarter but it was solidch i don't want to put that down in any way, but i do think the split is what is leading to this bag, big gain. so it is a positive. so, yeah, i'm kind of sorry today, but there's other ideas out there that hopefully i'll make some money. >> what is your favorite idea right now? >> well, i do like some of the technology stocks. as you know we've talked about

it i'm under way tech add com and 0 so it's a big waiting in like bench mark so i'm under wait tech, what i have been doing is actually buying in the last month a lot of the technology stocks that have sold off. so, for example, nxpi is a great story. it has a lot of auto exposure. they had a great quarter they increased their dividend, added another buy back the stock was very attractive i think at 19 times earnings we know apple had a good number. and also they have exposure to cloud and ai and data center and they increased their dividend and buy back as well, and also trades at about 20 times and has a 3% yield so semiconductors i like especially because they've lagged year to date.

so, you know, i don't own amd. that one is going to be a nice one as well. >> let's talk a bit about paypal because those shares are under pressure today there are questions about what happens next i know you don't own paypal, but you do want to make sure you're playing in the digital payment space. >> absolutely. and that's why paypal was so surprising because it wasn't an earnings miss, a revenue miss, a total payment volume miss across the board, but the guidance of 15% to 17% for growth for the year versus 18% expectations, that compares to american express that raised total revenue numbers 18% to 20% so i think they're losing some share. i don't think it's over for paypal, but the problem is, becky, as you know when you trade at 27 times estimates it has to be perfect, and it just wasn't perfect you look at american express and it's 16.5 times. >> palatable than paypal let's talk about another big

story we've bip discussing this morning. that's just inflation. obviously it's an issue for starbucks. they can't raise their prices quickly enough to keep up up with the higher input costs, higher wages it's kind of tale of two cities, two stocks i should say when you compare it to gm they're going to get strong demand coming in, reinvest in the business, not pay out the dividend again, but they're able to maybe raise prices and meet any inflationary pressures in a much better way than some consumer goods companies like a starbucks and i'm thinking mcdonald's from what they told us with earnings, too. >> yeah, so, again, to me it's all about expectations, right? i mean starbucks is trading at about 28 times forward estimates. it's expensive for what you're getting. that being said i actually am watching starbucks i don't own it i own mcdonalds. that, too, by the way is expensive, but i thought the quarter was just fine. they have been raising prices

and they've been impacted as a result starbucks the same thing, but when you're doing a global comp of 13% and you have transaction volumes up about 10% and ticket up 3 in a challenging environment when they are raising prices, i think that is a very interesting setup so if the stock falls, actually that's the one i'm looking at. gm, yeah, starbucks -- gm is very cheap and you have the auto recovery and you have the supply chain issues that are going to start to ease, so that should help i think going forward. and the multiple is very attractive i don't own gm i don't own ford, but both of them are great ways to play a lot of different themes. auto rebuild inventory and obviously the ev story but back to starbucks i like that story should it pull back just given that it is a quality franchise and the numbers are pretty good. it's just the expectations and values were a little rich. >> it's come down a long way over a month, month and a half

what's the price point that might make you think, okay, it's time to jump in? >> a trade is 28 times forward if it were to get into the low 20 multiples, that's an attractive story for the long-term. i think you get some of the froth out of the name and doing all the right things, and that's a quality franchise. you eknow me i like quality on sale, and this would be the definition, but i just think let's let it settle a little bit, but this is definitely on my radar >> stef, thanks. >> thank you, becky. when we come back vaccines for kids under the age of 5 could be available later this month. we'll speak to dr. scott gottlieb about that and much more before we head to a break let's get a check on the markets this morning. you're going to see the dow futures up by about 32 same story for the s&p, and then the nasdaq is the one really on fire this morning. it's indicated up by 222 points. "squawk box" will be right back.

hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone. at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect.

this winter, comcast business is helping designed to help you keep more of what you earn. team usa and businesses across america stay ahead. keep yours ahead too with reliable connectivity and secure solutions on the network that can deliver gig speeds to the most businesses. and get access to over 20 million wifi hotspots from coast to coast. so no matter what big event comes up, your team can be ready for what's next.

get started with fast and reliable internet and voice for just $64.99 a month. or, ask how to get a visa prepaid card with a qualifying bundle. welcome back to "squawk box. pfizer and bion tech asking the fda to expand use of their covid vaccine to children now age 6 months to 5 years. the application includes two doses of the vaccine with data on a third to come within

months the fda now planning to consider that request and could grant emergency use authorization by the end of the month joining us now dr. scott gottlieb, former fda commissioner and a cnbc contributor. he also serves on the boards of pfizer and lumina. and scott, i want to talk about that but also about something we just talked about. we've now had a couple of conversations, and the incoming traffic on it has been very high, which is that you've been making the argument we have to start thinking about getting rid of the masks and specifically in the context of schools and i'm hoping that maybe you can elaborate that -- now on that and what you think it means and what the level and threshold in terms of community spread needs to be where you feel comfortable where the kids take the masks off. >> yeah, well, let me take the last point or the last question because it's a great question. right now if you look at the cdc guidance they specify low prevalence in a community as 10 cases per 100,000 people per

day. for example, the guidance they put out recently in day care settings they say you can consider taking masks off children in those children in day care settings when prevalence becomes low so when cases are less than 10 per day. when we were dealing with more virulent strains 10 cases per 100,000 probably wasn't an appropriate metric to gauge when there's low likelihood of spread but in a setting of omicron we have a much more contagious variant that's probably going to continue to circulate. the blood testing did demonstrate 90% of all americans had some exposure to covid, antibodies whether through vaccination, infection or both in that setting we're going to probably have to tolerate and probably should a higher level of baseline spread at the point which we considered withdrawing

some of this mitigation. maybe it's around 20 cases per 100,000 per day when it gets down to that level in the community. i think that cdc needs to reconsider that because if they hold out and wait for communities to reach 10 cases per 100,000 per day we may be waiting a long time and well past the point when the immediate risk really has subsided >> scott, of course there's push back and one of the folks i've been getting some input on were teachers that said it may be a fine thing for the kids, but it's not necessarily a fine thing for the teachers who are adults and potentially at higher risk and what do you do about that? >> yeah, look, i've always felt we could use testing much more effectively, that what we should be focusing on is trying to reduce and prevent transmission in those dawcongregate settings. so they could be offering testing to teachers, other

things, students as well to try to reduce the risk of introduction in those settings as prevalence comes down, the risk goes down substantially, and what we've seen the vaccines are still very protective against symptomatic disease and severe outcomes. there was data out yesterday we've seen data showing 60% protection over symptomatic disease, 50% protection against infections, so it's still holding up and protecting against infection. not as much as before but still offering a degree of protection. we can lean-in a little bit. if we hold out again and wait for ten cases per 100,000 per day in most communities we're probably going to be waiting until the summer and lose the opportunity to return to some sense of normalcy in the schools. >> scott, you put out a tweet yesterday which caught my eye. it was a scientific study looking at specifically whether delta prevented omicron but also

and maybe more importantly whether omicron prevents omicron, meaning if you've got omicron can you get it again, and what kind of antibodies are created? it seemed to suggest that actually getting omicron is not going to prevent you from getting it in the future and what does that portend if true >> look, that's been true all the way through. there's been sort of this small camp that thinks once you get covid you're never going to get it again and the immunity from it is durable. that was never true. what we saw with the previous variants the immunity persisted for a longer period of time. what we're seeing with omicron and the lab put out some studies around this, bloom lab did and now you see this study out of ucsf it appears the immunity conferred from infection from omicron probably isn't that durable. but eventually the antibodies do weigh in you have t and b cell and you're

going to be protected against more severe outcomes probably. but you're probably going to get subsequently infected or reinfected with omicron. so it's not a durable immunity it's certainly going to be sufficient to provide a level of immunity across the population given how many people we've seen infected by omicron. but heading into the fall we're probably going to need to recontemplate vaccination if you want to maintain your immunity it's more of an upper airway infection and it's less virulent, since it's a less severe infection it's not as robust of an antibody response and an antibody induced immunity >> when do you believe the vaccine makers including pfizer on the board are going to make the decision about what the vaccine they're going to be releasing next fall actually looks like and whatever that is, is the goal simply going to be -- to prevent hospitalization or death or do you think that a vaccine that specifically goes after

omicron is going to prevent infection more similarly to what we were seeing with delta? again, it didn't prevent it entirely but the numbers seem to be better at that time >> i do believe, and this is pure speculation, but my belief is if you have a vaccine that is formulated against this variant and this variant becomes the dominant lineage and future mutations happen within this, some mutated version of omicron, if you're vaccinated against omicron i do believe there's a really good likelihood you're going to restore a lot of the protection against infection that we saw with the original vaccine when the vaccine was forulated against the strain, against b 117. that's a decision going to be have to be made by global health authorities. and they're working on the process of what their framework is for making that decision. it's not just a u.s. decision because if vaccine makers switchover a good portion of

their production to produce this new vax yean you're going to have to provide it globally. i suspect there'll be resistance from the w.h.o. because they'll worry it'll exacerbate and they've now deployed 10 billion doses globally a lot of countries have gotten existing vaccines. you switchover to a new vaccine you've got to get that again so this is going to be a global process. it's not a decision that the vaccine makers going to make by themselves >> dr. gaut looeb, it's always good to see you. you help us every single morning and we very much appreciate it when we come back on the other side of this senator pat toomey is going to talk inflation, the fed and tomorrow's big hearing on the president's fed nominees he's been quite critical of the picks and going to join us in just a bit to tell us why. and a former dolphins coach suing three team and the nfl

alleging discrimination. we're going to find out what it could mean for the leagues and teams involve and talk about the hiring practices across corporate america. "squawk box" coming right back for today's aflac trivia question, what year did google change its name to alphabet? the answer when cnbc's "squawk box" continues this idea of making a movie about caring, it resonated with me. and not only caring, but how does that apply to someone from our community? it's about taking care of each other. she is an example of strength. ♪ ♪ competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday.

it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.

now the answer to today's aflac trivia question. what year did google change its name to alphabet the answer, 2015 welcome back to "squawk box. you are looking right now live at gobbler's knob in pennsylvania where punxsutawney phil will be determining the next month or so of weather. and so happy ground-hog day to everybody. >> there he is >> we're getting close >> he's looking. does he see his shadow is he going to bite anybody? he doesn't look very scared. >> how does it work? >> no, if you see your shadow the ground hog goes back down into his cave for another six

weeks. prediction listen come on, tell us >> hear ye, hear ye on 2/2/22 welcome to pox tawny to celebrate ground-hog day the 136th annual trek of the pox tawny ground hog club, pox tawny phil the seer of seers, the prognosticator of all prognosticators was gently lifted from his burrow at 7:25 a.m. held high to see his faithful followers and return with glee. placing phil on top of the stump

wherein ground hog eves he directed the president jeff lundy and inner circle to a prediction scrolled that reads winter has been bleak, dark and bereave of hope, yet winter is just another step in the cycle of life. as i look over the faces of the true believers from around the world -- i lost my spot. >> tell us >> i bask in the warmth of your hearts i couldn't imagine a better fate with my shadow i have cast with a long, lustrous six more weeks

of winter. >> these people love to stretch it out six more weeks of winter because he saw his shadow. oh, punxsutawney phil. >> they know the tv business they just draw it out and keep you there. >> build the suspense. stupid ground hog. up next senator pat toomey on the president's picks for the fed. he'll join us right after this and later, the streaming ad war. the revenue dropping $8.6 billion for the quarter that beats netflix we'll talk about the ad surge and what's driving the numbers that's coming up a little later. "squawk box" will be right back.

need your prescription refilled? capsule pharmacy can fill and hand deliver your medications - the same day - for free. go to capsule.com to get started. we handle your insurance, coordinate with your doctor, and text you when your medication is ready. all you have to do is schedule delivery. we bring your medication directly from our pharmacy, straight to your doorstep.

get your prescriptions filled and delivered today - for free. go to capsule.com and get started in 15 seconds.

the senate banking committee will hold a hearing tomorrow on president biden's federal reserve nominees joining us right now to share some concerns he has about these picks is senator pat toomey. he is the lead republican on the banking committee, and senator, it's good to see you today you might anticipate that somebody from the other side of the aisle would have problems with the fed picks from a sitting president, but you've got some pretty specific ones. what are the biggest issues you're looking into here

>> yeah, and i have supported fed noms from the opposite party in the past, and i'd like to be able to get to yes on -- in some cases here here's what i think is happening. i think this set of noms and specifically sarah bloom raskin her candidacy for vice chair of supervision, in some ways it's a ref repdm on the idea of whether or not the fed should do the legislative work of congress, whether the fed should be in powered to engage in policy decisions that have nothing to do with their mandate? and specifically she's a very capable, very intelligent person she's got a [ ground in this area. she has recently and repeatedly and expressly advocated that financial regulators generally and the fed in particular advocate capital away from the fossil fuel sector for instance because she thinks climate change is such a serious thing that the fed simply has to step up and do this now, the problem is embedded in

any such action is all kinds of really important implicit decisions that are going to affect ordinary americans every day. we see how people are reacting to gas prices at the moment. that's not a decision to be made by unelected fed governors too never face the voters. that's a tough decision. what we do about climate is tough set of decisions that need to be hashed out through a politically accountable process, not the fed. i think the fed is already been wondering outside of its lane, regional banks in particular and i am totally opposed to the idea that we would openly declare that the job of the fed is to allocate capital >> senator, we should point out that sarah bloom raskin was a contributor for cnbc until recently you're not the only person raising this concern the american chamber of commerce has raised a similar concern and said that they're concerned about any industry being cut off from banking and said if it was a republican trying to say that we should cut off alternative

energy source companies that they would raise concerns about that, too. what has sarah bloom raskin kind of come back and said to these concerns that have been raised >> well, so here's one of my concerns there's this notion and frankly what we hear is all we really want to do is have a climate scenario analysis and we want to require the banks to understand their risks and do a climate scenario analysis. you know the last time a significant financial institution in america failed as a result of a severe weather event was? nobody does because it doesn't happen it hasn't happened banks understand the risks they take if they're lending to developers along the coast this is -- really what this is about is creating a set of tools that they can later use to require banks to have, say, higher capital waiting if they lend to disfavored industries. that's -- they're going to say

it's just about understanding risks. that's not what sarah bloom raskin has advocated for in writing and recently they've advocated for allocating capital. >> so is this going to be a party line vote? >> i think there will be very significant republican opposition to sarah bloom raskin i don't know exactly how the vote is going to turn out, and the vote isn't this week this week it's just a hearing to examine these questions, ask these questions and hear what the witnesses have to say. >> but have you already made up your mind? is there anything she could say that would change that >> it's hard for me to see how i could get to yes in this case short of convincing complete repudiation of the things that she has advocated for including recently >> but are there any democrats that have expressed concern? that's what i mean is this a situation where -- >> yeah, i hear you.

i don't know what my democratic colleagues are going to do i would say first there are some that are very concerned about any kind of government effort to starve the fossil fuel industry of capital that should be a concern and then i really think that all of my democratic colleagues should be concerned about the extremely undemocratic idea that we're going to empower the fed to make these kind of decisions for american society that -- that should be anathema to anyone who really believes in our democracy. i don't know how my democratic colleagues will react. >> senator, another huge issue has been whether congressional members, senators should be allowed to trade stocks and other equities while they're also kind of having access to information that the average american would not have access to, while they can influence regulatory issues that would impact a company or anything else and the philadelphia inquirer raised some questions about your

investment in crypto currency at a time you've been advocating to keep a hands off approach to what happens to crypto currency. first of all, it looks like you own somewhere between 2 and $30,000 of crypto you bought i don't know if you're still actively trading it. >> yeah. actively trading it would be a huge exaggeration. that piece is a ridiculous piece. they're just trying to sensationalize something that's not very sensational here's the thing, ever since i could first accumulate any savings i had a simple strategy, diversify because i've been doing other things rather than evaluating companies and picking stocks so i've always had a diverse portfolio. seems to me that crypto assets are here to stay and a thoroughly diversified portfolio should have some i have always -- i think you know this, becky, i've always been an advocate for free markets, lighter taxes that goes back to when i first

ran for the house in the 1990s i still believe that that isn't going to change it still applies across the economy, and this is -- this is a completely specious argument in this newspaper. >> you know, i understand it's less than 1% of your portfolio i get that but i think it does come to a broader issue about the appearance of impropriety or just about whether congress should be able to trade in any of this stuff while they have the ability to regulate any of these things i can't own stocks i'm only allowed to own comcast or etfs or i own investment funds that are broad tracking the index. that's it. because the concern is i could say something that would influence it i think you probably have the potential to have a much greater influence than i would over some of these things, and i think it's -- >> probably not, frankly >> well, it's on both sides of the aisle. nancy pelosi has a huge

portfolio. should she be able to continue to trade or should her husband be able to continue to trade >> look, we can shut this all down and forbid member of congress from doing it we can continue to make more reasons for people to not participate in public office i'm not sure that's a great idea we have a very extensive disclosure regime. every transaction has to be reported all assets have to be reported people can see what member of congress do and they can draw their own conclusions. >> the only thing i would say to that is, look, i think it's a good idea to have people making these decisions who are experienced in these arenas who understand how financial markets work i think it's crucial, in fact, they have that sort of experience, but why not have a blind trust? i mean, if you go into the white house you can't actively trade on this stuff. you have to sell if you're coming from goldman sachs you have to sell or put it in blind trust where you're not going to be able to touch any of that stuff while you're actually in the office. >> yeah, and you could do that, right? and then where does that end

so what about chuck grassly? chuck grassly lives on a farm. he owns that farm. if he votes on anything that has to do with agriculture does he have to sell his farm? what about someone who has a small family business? they've had it for years, maybe generations. do they have to not vote on economic policy because at the end of the day after all it could effect their business. i think the sensible way to do this is require disclosure that's what we do. anybody can see all the trades that a member of congress engages in and if someone thinks there's something untoward they can hold them accountable >> just separately do you feel the same way therefore about the federal reserve? do you feel the same way about the sec, about the white house the policies there are much stricter and the question is why they're stricter there but not in congress and i would argue the reason they're not stricter in congress

is because congress doesn't want to regulate itself >> look, if you have that vote it probably passes, right? congress likes to engage because it's good politics, but i think probably the reason they're somewhat more onerous than the regulators is because individual regulators have actually much more opportunity to make specific granular changes in the regulations that affect companies. and let's face it, regulation has the force of law so there's far more regulations passed than there is major legislation that affects business and so i get that, and, you know, people can argue about what the right level of scrutiny and restrictions should be on regulators portfolios, but i understand the logic by which it's more onerous even than what we have accomplished >> senator toomey, i want to thank you for your time today. we'll continue to monitor what happens with these fed nominations and hopefully you can come back and talk to us a little bit more about it >> all right

thanks for having me >> okay, thank you coming up we're going to get you up to speed on some corporate headlines and then a lawsuit that is rocking the nfl as one former coach accusing the league and three teams of discrimination when it comes to hiring we're going to break down atth lawsuit and what it could mean for the league squawk coming right back two out of three guys experience hair loss by the age 35. kind of scary. that's why i use keeps. keeps offers clinically proven treatment, and the sooner you start the more hair you can keep. get started for $1 a day at keeps.com.

one prilosec otc in the morning blocks heartburn all day and all night. prilosec otc prevents excess acid production that can cause heartburn. so don't fight heartburn, block it with prilosec otc. in our headlines at this hour mortgage applications jumped by 12% last week. that increase was driven by a

surge in refinancing activity, maybe in anticipation of higher mortgage rates in the future those rates already are on the rise with the average 30-year mortgage now at 3.78%. that's the highest in nearly two years, but i guess a bit of historical perspective, yeah, not that high. sony shares are jumping this morning thanks to the efforts of the popular super hero sony reported better than expected quarterly earnings and boosted forecast largely because of the strength of the movie "spiderman no way home." that movie has been a massive box office success and now the highest six grossing movie of all-time and remember elon musk's infamous funding secure tweet that he sent back in 2018? musk had tweeted that he was considering taking tesla private at $420 a share and that he had lined up funding to do just that musk is now claiming that saudi arabia had agreed to fund the buy out according to a court filing musk is being sued for that tweet in a class action lawsuit.

it had previously led to a $20 million settlement of fraud charges with the sec of course at the time $420 was well ahead of where tesla shares were trading and you've got to look way back there to see $420 in the rearview mirror. when we come back former miami dolphins coach is suing three teams and the nfl alleging discrimination we will dive into that story and what we could find out what it means for the league and the teams involved in the meantime take a look at the futures this morning ahead of the opening bell. dow futures hanging in there, up by about 30 minutes. s&p futures up by 35, and the nasdaq the big winner thanks in large part to what you've seen from google's parent company that stock up by about 10% as the stock not only good earnings ick arnd a 20 for 1 stock split. stou "squawk box" will be right back.

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 when you really need to sleep you reach for the really good stuff. matching your job description. new zzzquil ultra helps you sleep better and longer when you need it most. it's non habit forming and powered by the makers of nyquil. new zzzquil ultra. when you really really need to sleep.

as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable nationwide network. with no line activation fees or term contracts... saving you up to $500 a year.

and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™ humiliation, disbelief, anger and i've worked so hard to get to -- to where i am in

football to become a head coach for 18 years in this league. and it was -- to go on what was going to be a -- what felt like a sham interview i was hurt. >> that was former miami dolphins head coach brian flores this morning on cbs. he's suing the nfl, the dolphins and the broncos and the giants for racial discrimination alleging racism in the hiring process of coaches and executives and also claims the dolphins owner steven ross offered money to lose games to get a higher draft pick. the nfl is calling the suit without merit. joining us now is a sports business reporter for cnbc.com and outreach director of the sports business program at washington university. good morning to both of you. jabari, let's talk the sort of larger implications of this you think to the nfl and the power

of the lawsuit >> good morning, andrew. and listen, it's an impactful lawsuit. brian flores showed a -- it's a bold move, courageous move because he may not never get a job in the nfl again should you find more coaches join this class action, so the nfl has to respond and we'll see what they say about they don't think there's any wrongdoing, but that's the legal process you get more coaches to join into this and this gets to the system then you talk about possibly running to the nfl owner's money because let's say it's a billion dollar pay out now and now you're talking revenue and maybe that effects changed but at the same time this is the stage one of a very long fight it can get to a point where you start to see more coaches join it and if that's the case that could mean more trouble for the nfl. >> patrick, of course, the nfl put in place what they're calling the rooney rule close to

20 years and that's in part to what he is suggesting was the reason he was even given this interview, and he's argued it was a sham interview how do you think about this, and does this change the dynamic >> andrew, there has been plenty of instances where this has happened since the rooney rule was instituted unfortunately, there have been other coaches who have felt it was just a token interview and that's a problem i am even more troubled with this claim of the dolphins if the owner of the dolphins was trying to in essence bribe brian flores to lose games, this has competitive issues that i think the league is going to strongly penalize going back to jabari's point one thing i'm hopeful that by having the courage to come forward and because there are plenty of teens and individuals in the league that have shown a tendency to higher minority coaches, positional coaches, coordinators, that this is actually i think going to

embolden brian flores, and do think he'll coach in the nfl again. >> going back to this issue of steven ross, though, because that -- you're right that's a big claim in addition obviously to the issue of racial discrimination do you see his ownership of the dolphins in jeopardy as a result of this? >> you know, andrew, i don't but what i do see is the nfl is likely obviously going to investigate all three of these cases and teams. in case of the dolphins and giants, what the nfl could do in their play book is either fine with cash or fine with draft picks. this is typically what happens one other thing i want to say about this is obviously with only one current black coach out of 27 teams that currently have coaches, you have five openings still out there, i think the timing of this lawsuit actually could help some of the minority candidates in this particular cycle that if there is a close

race between a white and a black candidate, right or wrong, i think this actually maybe because it's bringing this to the light may help some of these minority candidates whether it's brian of the buccaneers or defensive coordinators like raheme morris. >> professor, i think we assume that, right? i think we assume it might help them, but i think this is more of a systemic issue because when you talk about, you know, they may help them this cycle, yeah, but what about the rest of the cycles what about the cycles beyond this year? the cycles of ten years from now? i think this possible lawsuit can really change the thinking of owners and how they approach it if you go into their pocketbooks. though it may help people this time i'm not sure if it answers the issue that brian flores has brought up, and that is this is a sham the rooney rule, yes i think the nfl is acknowledging they have a problem by even installing the rooney rule, but at the same time this is more systemic issue. how do you change the thinking of the people who are doing the

hiring which is the owners and we obviously know the only thing that gets them to tick these are bzmen it's money what got them to bend over in st. louis, a $790 million lawsuit. what got them to jerry jones to kneel, money coming out of their pockets when the players took the stand. so maybe this changes things and helps them, but it's about something deeper than that, and we'll see if this lawsuit helps them >> i think it will absolutely i think it will. and another interesting thing, jabari, when we look at these numbers, look at these coaching numbers, it's interesting to note if you look at all coaches in football roughly 36% of all coaches positional, coordinators, head coaches are black. but there is a tilt and not so much a pipeline issue there's a tilt on the defensive side of the ball you actually have more defensive assistants who are black than white. but you don't have as many offensive coordinators or offensive assistants who are

black, and that's where a lot of these teams are hiring their coaches. look at the super bowl in two weeks. you have these two young coaches but they came from the other side of the ball >> and it goes beyond coaches, though, right? i hate the argument that it's just coaches it's executives, right the ceos of the team, these are the people who have the heirs of the owners perhaps he can convince an owner who may not be exposed at the same time if you have a black ceo perhaps he can have -- listen, jason wright is about to announce a new team. he's the first black team president. i mean, it's just not coaches. it's a bigger issue. >> and you're right to that point, jabari and andrew, because there's such a small percentage of either ceos on the business side or gms on the football operation side if who are black that's exactly the point. so those take a broader

mind-set, and again, i hope that because of what's happening now this is really going to hopefully further -- >> patrick and jabari, i want to thank you for the conversation it's an important one. it's important for what's happening inside the nfl but perhaps even larger going to have implications for maybe the way corporate america thinks about hiring in addition a lot of corporations have taken on the rooney rule themselves perhaps there are sham interviews happening there i'm sure there are folks looking at this and thinking about that this morning when we come back an employment report premmer. we'll get those numbers, the market reaction and try to figure out what it says about friday's big jobs report take a look at the futures right before this. dow futures about by 66 points the s&p futures up by 38 and the nasdaq futures indicated

up by 240. of course that comes after gains for the markets yesterday. stick around "squawk box" will be right back.

we gave new zzzquil pure zzzs restorative herbal sleep to people who were tired of being tired. i've never slept like this before. i've never woken up like this before. crafted with clinically studied plant-based ingredients that work naturally with your body. for restorative sleep like never before. ♪♪ the chewy box comes today! calm down lenny. we just ordered it yesterday. (gasp) oven baked apple biscuits! hold me leroy! biscuits!! get fast free 1-3 day shipping when they just can't wait.

chewy. -capsule! -capsule! -capsule! capsule saves me money on prescriptions. capsule took care of my insurance. capsule delivered my meds to my doorstep. capsule is super safe and secure. get your prescriptions hand delivered for free at capsule.com good morning futures in the green as we make our way towards the opening bell especially the nasdaq. tech shares currently set to pop

about 1.5 3%. what is behind the surge for one thing a solid quarter from alphabet. and on the way in just 15 minutes brand new jobs data. we're going to get january report ahead of friday's big labor department number. the final hour of "squawk box" begins right now good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with andrew rosorken. joe is off today and the futures are up check out the u.s. equity futures at this hour you'll see the dow futures up about 58, s&p about 37 and the nasdaq up about 233. so tech rebounding after the

significant steep losses we've seen year to date so far take a look right now at the treasury yields. they haven't done a whole lot. the future for the stock indexes have been all over the place the treasury bonds sitting at 1.799% not that different from what we've been as far as a week ago. >> meantime i want to dig a little deeper into the rebound market in the last few days. mike, what do you think is happening here >> well, andrew, the snap back has been pretty dramatic in part because the last little leg of the down turn was also very intense. it's often the case you get a bit of a "v. we've had the bond market mention gone quiet for the last several days it's allowed the cap earnings to have more influence on the index. you see that was kind of when things accelerated so you made up that part of it i always say every "w" starts with a "v," not every "v" becomes a "w." this is really the area where people are going to be watching

in the 4,600 if we get there where it's sort of a little more of a highly trafficked area that was a congestion on the way down remember that's going to be within 5% of the all-time highs and that may be where the harder work is done, but right now people got very, very negative near the lows a week ago monday and it's definitely weighted toward the megacaps. take a look at alphabet relative to amazon over four years this group of massive dominant tech platforms they have been an outsized influence on the market but swapped out leadership over time here you have alphabet that's obviously raced ahead and caught up, but look at that massive run amazon had into the first month of the pandemic and right now neck and neck on a four year basis. this was right around a market high around 2018 the s&p 500 around this period

up by 1600% or so. amazon has been the last aggregate in the last year and year and a half. the rest of the world actually performing okay year to date year to date is obviously only four weeks, but if you look at developed markets slight out-performance relative to the s&p. we'll see after we have all of our reports. but it shows you there's a bit more runway for reopening and reacceleration of those economies and you also have those bond yields going higher in germany above zero and that's helping their banks and things like that. we'll see also when value usually outperforms. and that has sort of been the case so far this year. >> mike santoli, it has been fascinating to watch the whipsaw effect here. we'll see where it goes. thanks becky? >> all right, let's continue to focus on alphabet. it's just the latest in its

report that showed full year profit nearly doubled from 2020 to 2021. fourth quarter revenue grew 32% year over year, and in the fourth quarter youtube ad sales alone were higher than netflix's total fourth quarter revenue joining us now is the managing director and co-founder of kendrick ventures and we've got rich greenfield and, rich, let's start with you just talking about youtube because if you were looking at the ad revenue for the quarter outearning netflix overall. how big of a surprise is this? >> this is a business that's 17 years old. growing revenues at 25%. i mean, it is just stunning when you think about the power of youtube. but it really comes down to the fact this has become for an entire generation, this has become tv. you know, people think about -- you know we talk a lot about

netflix versus disney plus versus hbo max and peacock and all of these things, but remember the number two most used service on a connected tv is youtube it represents well over 20% all-time spent on a connected tv is youtube and i think it just speaks to the creativity i mean, you can find anything and everything on youtube, and it's really where people go to watch video, and it's the only thing bigger than it in terms of time spent on connected tvs is netflix. and it just shows you how powerful youtube is, and i think advertisers are finally realizing if they want to reach consumers on the big screen like they used to do on traditional television, youtube is now a must buy for grabs >> so you're long on google on all of this, but what does that mean on the flip side of things what you do with all of the other tv or new tv type of products you just mentioned. you short on any of them >> look, i think that's sort of the challenge that all of these smaller platforms have

i think, becky, you me, andrew, we've sort of debated for probably the last couple of years what happens to all these smaller platforms? can they all survive or are we going to see consolidation discovery plus is merging into hbo max. i don't think when you see the tech giants like apple, amazon, netflix all pouring tens of billions of capital over the next five to ten years into content creation and these services, i think a lot of these smaller services are not going to survive disney has probably got to do something to combine with hulu they can't have all these smaller services you're going to need scale i think that is the key take away scale is critical, and there's not many companies that have it. youtube it just makes life that much harder for these services because in the traditional tv world there is no youtube. you had your set of channels on the dial you didn't have it so competition is that much more intense. >> yeah, no equivalent steve, let's talk more about the

broader technology picture you think that for many of these companies the sell-off has been overdone at this point why is that? >> well, i think over the last month the entire market correction and what you're seeing right now -- and this is a cycle that happens every time there's a correction of the overall markets. people realize these tech giants they're like the old japanese phrase of a large conglomerate, they've got multiple interests as rich described it, they're the number one or two video, ads, mobile. you know, they're always going to be -- they used to be the innovator with high risk but now they've become low level stocks that bounce back stronger and sooner than the rest of the market they continue to drive profits you know, this is an issue for big tech they still face head winds from the legislature. they still face head winds just in terms of society and consumer

protection you know, i don't operate in the early stage venture area, and start-ups are coming, mid-sized and early stage startups coming with new technology, new systems designed web 3, crypto, also looking at marketplaces a lot of marketplaces exist outside of thoof these large tech companies sphere. for now these web 2 companies, these giant platforms over the last 15, 20 years they still have strength, they're still peaking, but the onslaught is coming from a lot of observers and innovators what's interesting right now is that this is -- this has become such a snap back in the market that it's almost become sort of an expected -- expected reaction so it'll be interesting to see how the next week plays out. >> what's become an expected reaction, that they'll bounce back every time they drop down >> yeah. tech companies have tended to be

the sort of savior in the market the beginning of covid we all saw the market -- that was the last time we saw a huge dive like that. you saw tech companies especially cloud and some supply chain companies really become sort of covid solution stocks. >> right >> and i think right now you're seeing numbers come off some of these large big tech companies that shows two things. it shows, one, they've always had the lead, they continue to have the lead for better or worse. they continue to increase their lead against a lot of their competitors, and so i think this is becoming a repeated pattern where big tech is becoming the first bounce back. >> hey, rich, we weren't going to talk about this but i saw a note you just put outright before you came on about initiating coverage on spotify with a buy you've got a $260 price target so all this controversy surrounding rogan, joe rogan, that doesn't bother you what you're watching here is the advertising numbers?

>> look, i think if you look what happened with google and youtube advertising is doing amazing. i think if you look at spotify the story is they're finally passing through a billion. i remember when twitter did it i remember when snap chat did it, roku did it. i think you're going to see far more rapid growth for spotify. do i worry about the whole joe rogan controversy? absolutely if there's a huge wave of artists that leave spotify, but i think they've done the first important step of following meta's lead, following what other companies do should they have done it sooner? sure i doubt at this point this is going to lead some massive wave of defections from spotify if itchanges obviously that would change our view. right now we think the advertising story is what investors are not giving them enough credit for, and we think there's a lot of opportunity to blow through expectations relative to the streets numbers over the next several years. >> rich and steve, thank you for

joining us this morning. >> thanks, becky coming up when we return, breaking jobs data next when "squawk box" comes right back.

welcome back to "squawk box" this morning we're just a few seconds away from january's adp employment report take a look at the futures ahead of that number dow up about 61 points and nasdaq higher in large part on the back of those alphabet numbers. mr. liesman, sir, what's the number >> are we there at 15 yet? i guess we are -- no, we're not quite there yet, andrew. yeah, three, two, one, zero. yes, minus 301,000 adp saying the january private payrolls declined by 301,000. they revise down their december payrolls to 776 from the 807, which, by the way remains a huge miss relative. but here are the numbers minus 300,000 versus an estimate of 200,000 on the street we did discuss a possibility of a negative print the good sector falling 27,000 and the big hit in services down

to 274,000 as apparently omicron had a massive effect and there's the estimate for friday, 150,000. you'll note when we reported this initially the estimate was 178,000. dow jones is now taking that down to 150,000. here are the declines by business size and every single business size saw declines big which is what you'd expect with the omicron and hitting businesses and large businesses down maybe 8,000 every sector except for i believe manufacturing, i'm not sure got to check that number there and manufacturing and education and health services down 15 and construction down 10,000 a quote here from richardson, the chief economist says the labor market recovery took a step back at the start of 2022 and it's significant though

likely temporary impact to job growth and that's where we are. the report we did on monday talked about people who are unpaid sick leave, they're not at work they end up counting as a job loss, they come back it's a job gain so we'll see if this is just a january thing, and the trouble is you cannot get a leave i think from the economy, from this number. i will point out about random numbers, give me one second and say one factoid here which is adp year to date has been an absolute error of 292,000. that's positive or negative. so you've got to this take report and indeed all reports with a grain of salt i will tell you both ukg and home base have pointed to weak numbers. >> okay, this is obviously a weak number and i imagine you're extrapolating out friday is a weak number. tell me what to the extent jay

powell is looking at this and all of what we've been talking about for the last cup of weeks is hiking does this change the equation in any way? >> i don't think so. i think what we're doing here is we are -- thankfully we have this high frequency data, and i did check with the folks at ukg. he tells me in the week since the survey there has been some strength coming back already especially in the hard hit service sector here. so that's one thing. i think powell and company are going to look through this piece of data. i suspect that the market will as well. i will not take this as a sign that perhaps the fed will back off its plans to hike. i think that that is not going to be something the fed is going to put into its calculus here. if we have weakness and don't get a big bounce back in either

february or march, it depends a little bit upon the timing of the bounce back, if we don't get a bounce back, then i think we can start to think about fewer hikes, that kind of thing. but right now i think this is a number everybody's going to look through. >> okay, steve liesman, thank you. appreciate it. we will see what friday turns out to be, but sounds like we're looking at the number but looking through the number that seems to be what we're doing right now. >> you've got to pay attention, and i just think very quickly, andrew, you have to add some risk to economic weakness here it doesn't mean you can't completely ignore it, but i think you can start to think about on the backside of this you'll have somewhat strong numbers. >> okay, steve liesman, thanks again. becky? >> thanks, andrew. still to come this morning a big day for opec and the global oil market with the car tell going silent in recent months officials are meeting today, and it's possible we may finally get news of an output increase.

wti has been on a run. the energy sector's been up by about 23% for the year to date as we head to a break right now take a look at shares of paypal, too. they're on pace for their worst day ever after the company's spin-off from ebay weak quarter guidance prsungesri that stock now down by more than 18%. stay tuned "squawk box" will be right back. throughout history i've observed markets shaped by the intentional and unforeseeable. for investors who can navigate this landscape, leveraging gold, a strategic and sustainable asset... the path is gilded with the potential for rich returns.

need to get your prescriptions refilled? capsule pharmacy can hand deliver your medications - today - for free. go to capsule.com. we handle your insurance. all you have to do is schedule delivery. go to capsule.com to get started in 15 seconds today.

opec and its allies meeting today with big implications for the global energy market brian o'sullivan is here he's got the details, and this is a biggy people are watching the markets are primed >> it's a biggy, and it may be a fasty. i'm not sure if that's even a word, becky. there you go, becky. a quick. you caught me off-guard with that one all right, so the meeting is under way, but it may already be over, and here's why we say that the meeting is actually occurring, but here's the thing, they have a technical committee that meet ahead sort of a voting meeting where they actually make the decision the technical committee according to many sources has recommended no change to opec's plan to 400,000 barrel per day increase, the same plan they've been on now for more than a year, maybe a little bit surprising it is likely that the group will listen to the jmmc which is the

technical committee and just do what they've said. now, they've not voted on it yet. we don't have a firm decision, but it is leaning toward no change to their planned output hike of 400,000 barrels a day every month until they get to pre-pandemic levels. okay, you ask why not? oil prices are soaring, well there's a few reasons. number one, you've got some of the numbers like nigeria, libya and others that simply are unable to raise their output as a group. they have to all do it together. you really need saudi arabia and the united arab emirates to step up and kind of step out of the group, get special provisions to increase their production. that could still happen at this meeting, but it's not looking like they will here's the other drama, opec's last press conference was back on november 4th. that would be what about three months ago it is very unlikely or very likely that russia, which is of course a key member of opec

plus, becky, simply does not want a press conference, but they don't want to be asked about ukraine, about gas flows about putin's plans. remember the russian oil minister is the vice premiere of russia he's not just an oil guy he's putin's right-hand man. so my guess is they're not going to have a press conference that would be three months since we've heard from them. a lot of people ask on twitter why doesn't the u.s. make up production well, production is increasing a bit. we're at 11.6 million barrels a day. i know you talked to exxon the other day. they said that, but also labor shortages, pipe shortages, truck driver shortages you can't raise output in america if you don't have the people, the pipes, or the trucks to do it so that's why opec's running the show that's why we're near $90, and it is nlikely they are going t increase their planned output. >> so if all of this is already

kind of played into the market, there are so many things driving oil prices higher including ukraine and what may happen on the border with russia, if all this is priced in they can't raise production too much, is there anything that would come out of this news today whatever they do that would drive the markets one direction or the other? >> they could shock the world. like i said the meeting is not officially over yet. they've kind of prided themselves the last couple of months these past meetings could the saudis offer sort of a gift to the world by dropping another million barrels as an unexpected thing potentially. but that is unlikely to happen remember under this deal i know it sounds weird, but under this deal if they increase it's got to be proportionate to every country. becky, there are countries that simply they're not making their quoteo now because they can't make it up they'd like to take advantage of

$85 to $90 brent crude, but they're unable to. this would take the whole group allowing the saudis or uae or maybe russia but that's unlikely for other reasons to add more barrels to the market. bottom line is this we're creeping back to 90 or above where we were back when the spr was released back in november. inventories are going down, demand is coming up, omicron is burning off quickly. let's hope that continues. and the world sort of continues to reopen, so supply demand. so the only thing that could send prices down, i think would be a shocker from opec or the other big variable would be an iran deal. we're already kind of hearing r rumblings. ironically the white house' best chance to bring prices back down is letting iran back into the markets. >> a lot of decisions they don't

want to make, a lot of bad choices for them >> correct because what are you going to do appease iran which is going to tick off allies or tick off your voting base which is getting $5 gasoline and getting close to $4 in other states as well. >> we have principles as long as it's not too expensive >> yeah. and i think right now, you know, you're sort of on that cusp of too expensive for many middle class, people are starting to drive a lot more and this is weird. look what's happened in new england the last couple of weeks, super cold weather. they're burning oil to heat and use to make power for electricity. i mean, think about this the year 2020. they're using oil, oil which is being imported by ship into boston harbor. 100 miles away is the greatest natural gas field in america and yet because there's no pipelines they're bringing oil in.

so oil demand is actually popping up in weird spots of the united states, which is adding to some of the pricing pressure that we've seen. >> thank you for the explanation, for getting us all clear on this and getting us setup for whatever this meeting brings today we'll see you later. >> okay, thanks. coming up after the break, social distortion. we're going to bring you the big slate of challenges facing some of the top social media companies ahead of meta's fourth quarter earnings report. and silicon valley congressman ro khanna is going to join us to lay out his ideas for solutions to some of social media's thorniest problems and gm ceo mary bara on her company's brand new quarterly results. stay tuned for all of it you're watching squawk on cnbc e. to prepare our people for anything. you're late well, cdw amplified services experts will consult with you to design, orchestrate and manage your most complex technologies

to help you quickly overcome any obstacle ... without all of this. oh, that is better. who's that? oh, if you want coffee, you gotta get past tantrum. you're in for a brewed awakening. for technology that moves you forward, trust cdw amplified services your record label is taking off. but so is your sound engineer. 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 ♪♪

what do we want delivered every month? clumping litter? salmon pate? love that for me. just choose the frequency and ship it! i feel so accomplished. now you can pet me. get fast free shipping for all your pets' needs. chewy.

social media earnings kick off today with meta platforms. of course the company formerly known as facebook reporting today. and pinterest and snap and twitter next week. what will these reports tell us?

julia borstin joins us right now what we can expect >> well, the social media stocks have struggled since their last earnings reports shares down 65% since then, pinterest shares are off 33% they hit an all-time low, and meta shares are down about 2%. now, there are key factors weighing on all these shares these companies warned about apple's oirksos changes hurting their ability to target ads and also talked about supply chain challenges causing adver tizers to pull back spending on that all important holiday quarter and inveers have concerns about waning engagement as economies open pinterest actually lost users in the last quarter now, these stocks are getting a boost this morning, though, from google's better than expected results. these are all in the green with alphabet shares up about 10%, meta up over 3%. this after youtube reported its revenue grew 25% from the year

ago quarter though it did fall short of analyst expectations, it does speak to the strength of digital advertising right now. writing, quote, we expect the earnings season for the digital advertising stocks will be not as bad as feerd going onto say, quote, snap is the best risk reward and the stock has underperformed the group and the broader markets year to date we think that ios measurement head winds are transitory, so that's something to watch when meta reports after the bell. analysts do expect its revenue growth to slow dramatically to 19%. the question is what kind of outlook mark zuckerberg provides into the year ahead. guys >> julia, already in speaking with some people this morning they've talked about how because we saw such great numbers from google they're anticipating you're going to get some pretty great numbers as well. so just in the last 12 hours or so i just wonder how much ratcheting up there's been in terms of expectations for this

group at this point. >> i mean, just looking at those stocks and how much higher they are in the extended hours trading i think the expectations have gone up dramatically because of what we saw in google but really youtube in particular and i think there are these questions about those structural challenges facing the advertising, the digital advertising supported stocks right now, becky but then i think there's this question between these companies how does each of them fair when it comes to growing engagement as people spend less time at home is that something maybe snap is better at and pinterest is worse at because pinterest has been traditionally for more of those at home activities so i think we're going to have to see how each of these companies fares with these broader questions and challenges >> we'll be watching when we start hearing from some of these companies later today. meantime, the biden administration moving to revise federal rules to address potential security risks from tiktok and saying the proposed

rule would change and expand federal oversight to explicitly include apps that could be used by foreign adversaries to obtain or steal data. the proposal could force apps like tiktok to submit to third party auditing, source code monitoring of data apps. for more on this and what's happening across the landscape joining us right now is congressman ro khanna of california his district includes communities in sul convalley and he's got a new book out. congressman, thank you for being with us this morning i do want to start with the tiktok news and try to understand your sense of how you think foreign companies like this should be regulated if at all. >> they absolutely need to be regulated. it's a concern if you're using tiktok and your data is being collected. we don't know where that data is going, and we don't know what people will use that data for. they could use it surveillance

in china frankly, we need to regulate tic talk but also need broader data regulation so even american companies can't do that. >> there was a moment as you know tiktok was going to be shutdown virtually outright. do you think that should have happened, should be in the cards still? >> i'm not for a total shutdown. look, almost every young person is on tiktok and has tiktok videos it's probably only members of congress who haven't been on tiktok so it's become a place of communication young people have their voice, but we have to make sure they're being protected and their data isn't being used against them and certainly it's not going to the chinese government >> one of the other big debates when it comes to social media networks and this idea of platforms and this is different has been this issue of spotify and what's happened with joe rogan over the past week i'm curious where you land on that as you try to balance both the freedom of speech issues at the same time we think about

misinformation and whether spotify should be thought of as a platform similar to a social media site or more as a broadcaster. >> i don't think joe rogan should be kicked off spotify i do think that spotify should warn people that they can't be engaged in misinformation. it damages the public health if your show were to spew out things that would actually harm the public health you would have consequences and similarly there should be consequences for people doing that on spotify, which is enough of a media platform. but kicking him off is too severe and he's said he's not going to engage in that misinformation, that seem tuesday be appropriate. >> one of the things your book addresses is the issue of privacy and we talk about digital dignity. one of the things that has surprised me about sort of the human reaction to this whole debate is, you know, we talk on the air about privacy all the time, and yet, you know, every

single day you get a cookie on your computer, and invariably i think everyone clicks yes, i accept that or no. but they probably spend less than 2 seconds even thinking about it there's so many instances where you hear about a hack or your information has been stolen from this website and then we go back to the same website. what does that say about us? we may think we want something and then we just don't follow through. >> that's a great point. and this is one reason why we need to have the default be that you can't have these companies take your data because otherwise people just click and give them consent. but here's why it matters. it matters maybe not to your daily life, but let me say this. qanon has grown because these companies were able to collect that data and target individuals.

the ability of these companies to target teenagers come on instagram has caused suicide and depression is because of data collection the ability of the big lie to spread or climate misinformation to spread is in hands when they're able to target based on data so even if an individual says that doesn't really affect my life, it's certainly hurting society and allowing them through algorithmic implication to really target the most vulnerable >> many of these companies as you know are in your district, in your state. long-term do you think that they've benefitted society or not? >> yes, absolutely i'm proud to represent silicon valley look, we wouldn't be having this conversation if it weren't for apple. doing it on the iphone, doing it on zoom. individuals today have more information than probably the united states of had in the

1980s. that's because of google there's no doubt me too and black lives matter has benefitted from social media platforms. but the problem has been there's been a blind spot and lack of humility in understanding all the negatives, the contribution for january 6th, the polarivation, the misinformation, the lack of equality, the growing disparity of wealth. we need to have more humanistic values in how to apply technology so it can benefit everyone >> i want to ask you about something about -- this is about the credibility of i would argue washington, which is a debate around whether congress people like yourself should be allowed to trade in the stock market given all the information that you have at your disposal, given the folks that you represent and i raise this issue because there was a capital trades analysis showing that you were actually one of the most prolific traders this past year, an estimated $34 million in

estimated purchases and $19 million in sales that surprised me, congressman >> well, it's not -- i don't trade at all i'm up for banning trade it's my wife's money, which i had no actual legal rights to. it's before we were married, and i don't tell her what she can do with her money prior to marriage but i'm actually for banning stock trading and have never traded stocks and support a ban on members of congress and not trading stocks i don't think that should apply to spousal assets prior to marriage i think that would be unfair >> so how would you organize that, though so you are against congress people effectively not being able to trade at all or trading in a blind trust of some sort? >> i'm for that. i'm on the bill. i've never traded stocks, but i think it should apply to members of congress and to joint accounts with spouses. i don't think it should apply to property or assets that someone

has prior to a marriage. >> i appreciate that the complicating part is -- and by the way this is true of nancy pelosi her husband seems to be an active trader. it's very hard to decipher who knows what and given the information that you may be exposed to, you know, what kind of safe guards and firewalls you can create >> well, i think you could create them if you say you can't trade with either joint assets or with anything that you own. if someone has a income prior or assets prior to being in a marriage i think it's unfair for someone to say, well, now i'm going to tell you what you need to do. but i think you could place a clear restriction on members of congress for any assets they're part of joint assets or individual assets not to trade it that's what i've done in my five years of congress and also the legislation i'm on i think i'm one of 20 members on the ban stock trading act, and

that's -- i think we should pass it into law. >> congressman, i understand your point but we've had this conversation many times. not only are we on cnbc banned from trading, our spouses aren't allowed to do it my kids can't trade, any dependents that i have, too. and it does get back to the appearance of impropriety. if you knew something and your wife happened to make some really smart well-timed trades on it, it would look badly it would look as if you were giving her sensitive information, and i think that's what this kind of gets to. it seems unfair. it's complicated, but i don't know how you can avoid the appearance of impropriety at the very least >> well, i think you can avoid it by doing what we do she doesn't make any stock trades actively. it's in a family plus her father he's an entrepreneur, he succeeded in ohio. they have certain family investments that she's part of

she doesn't actively trade in the stock market it's managed by an independent party and we disclose everything and i actually have never traded ever stocks, and i never discuss it with her and she never trades and so, you know, but i think we've been very, very ethical and disclosed everything, full compliance but i do think we should ban individual members from trading or joint accounts from trading and that would still be a reform only 20 members of congress support that, we should probably get more on that >> congressman, thank you. >> thank you when we come back we're going to get jim cramer's first take on the trading day ahead. and then jason trennert tells us if he thinks we've seen the stla of the early 2022 sell-off stay tuned you're watching "squawk box. and this is cnbc

today, business is a balancing act. you want your data to be protected and secured. and your customers want seamless and easy. with ibm, you can do both. your company can monitor threats across your clouds, address all those regulations, and still create all new experiences. trustworthy ai powered security. that's why so many businesses work with ibm.

let's get down to the new york stock exchange. jim cramer joins us now. jim, we've got the jobs numbers this morning we'll see what friday turns out to eboo, but then there's alphabet, and i'm can't figure out whether i'm supposed to get excited about the earnings numbers which are exciting onto themselves or i'm supposed to think fed, fed, fed, rerating of multiples and that was the story yesterday. >> well, i think we had that rerating and then you get these companies they're called faangs. these companies just reinvent themselves constantly and that alphabet call was extraordinary. they've got divisions doing badly. they've got a $50 billion buy

back this is just an amazing story, and they're just smarter than we are, andrew. those are those kids in class. you remember those kids like they were putting rockets from like the second floor to the fourth floor when we were trying to figure out like what vectors are. they all got hired i mean there's even one moment where they just say yes. they're smarter than everybody else they have a really great algorithm, and you could actually, like, mind meld searches now and by the way, youtubethets a company in itself. the netflix appraisal is funny to get a lot of page views, get a lot of subs. these guys you pay them and they get a lot more it's really incredible >> what's your thought about the stock split and what that really means? i always say it should just be math but then you get into the options market and creates a whole different sense of things and on top of that this prospect

at least speculatively maybe it'll enter the dow. >> i'm closer to robinhood are people saying i want $800 for the stock, $500 for the stock on stocks divvied up, and i said yes, absolutely. they did a stocks play it would matter to them even though it doesn't create more wealth they were like, yeah, we want everybody involved a lot of people, andrew, have gone toward fractional shares. i liked it it showed there's a definite caring for the noninstitutional investor. right. i have known ruth for a long time she is done remarkable things, obviously, when she was at morgan stanley. >> yeah. did you read about her father? >> no? >> her father in detroit

he escaped from the nazis. he was 16 and he got a ph.d. in london like in oxford i'm not kidding. he may have been the smartest person of the year she's amazing! and, by the way, as smart -- she's nice >> yes very much so very much so. >> she said you said it was good you are listening to me? she's just different they're smarter than we are, andrew. >> heap the praises upon ruth or rad. we want to remind everybody about jim's investing club check out his views in real time by putting your phone on that screen right now or go to cnbc.com/jointheclub dad, we got this. we got this. we got this. we got this. we got this.

yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones let's partner for all of it. girls... the chess club has gained an edge on our bake sales. we need more ways of connecting with customers, fast. i know some consultants with great ideas. can they help us improve our digital experience? absolutely. they've invested over $2 billion in tech. that could really help us manage inventory. and save us a ton of dough. then let's take back our market share. checkmate, chess heads. girls, i said “bedtime”!

welcome back to "squawkbox." a little more than a half of an hour with the opening bell a look over at dominic chu a look at the premarket movers given everything we're hearing here. >> take a pick there's so much stuff going on we'll try to fire through the sheet of what is moving in the premarket trade. we'll start with an interesting one here overall with regard to a news dynamic it's capri holdings. formerly known as michael kors it's up 15% in the premarket trade and the forecast more robust than analysts expecting it shows there's a demand for

luxury goods you may see some funkiness, depending on what market data source you look at i'll show you what is happening with exlon-exelon and constellation energy e excelon has completed. don't bore it's because of the separation and, becky, most popular ticker searches on cnbc.com from yesterday's bull surprise. it may be no sfliez both classes of google stock are in the top 10 the number one search ticker up 10%. paypal could be on pace at 19% down in the premarket. the worst day ever as a public company since being separated from ebay in 2015. at&t and the warner media spin-off news, advanced micro, united parcel service in the top ten. the rest of the top 10, becky,

is in my twitter feed. >> thank you joining us now for more on the impressive market turn around we've seen over the last few days is jason tren earth chairman and ceo of strategic gas stregas. do you think there could be another leg down >> well, becky, i think the volatility, in some ways, is just starting. i don't, you know, i take no pleasure in that this is welcome. the market was cleaverly oversold, in my opinion. by the same token, i think we're, you know, like the carpenter's song, we have only just begun i think the era of free money is largely over and, again, we're getting started to normalizing monetary policy. >> thank you for getting the carpenter's stuck in my head this morning [ laughter ] let's talk about a few of the headlines we've seen this morning. first of all, adp showed a drop

of 310,000 when we were looking for a gain of about 200,000. i don't know what that portends for the friday government number or if we care because it'll be messed through omicron oil approaching $90 a barrel do any of these things scare you? concern you? low do you look through it >> i would say on the employment data, i think you have to -- it's tough to say you want to look through it but i think you have to look through some of the employment data over the next couple of months mainly because it's going to be pretty messy because of omicron and some of the shut downs i think it's fair to say we're pretty close to full employment, at this stage. notwithstanding some of the lockdowns. i'm assuming some of the lockdowns will end in the next couple of weeks. this is our first day back in our office in new york i hope that is harveture of other thinks to come in the

city the oil situation, in my opinion, is in some ways more serious. i think it's more structure. ting has something todo with the environmental policies here in the united states that's going to be difficult, i think, to change without more capital spending, without more encouragement to drill. so the fed will have its -- >> are there any safe havens or pick your points in my opinion, i can't say i'm particularly bearish on the market as a whole. i think that the rotation towards value-oriented sectors are more secular oriented

sectors is not a flash in the pan. i think it's a multiyear change. we like energy and materials and industrials and financials those are companies, in our opinion, that should benefit from higher long-term interest rates. or at least the financials should benefit from higher long-term interest rates and those other sectors should benefit from a reopening over of the overall economy as well as some, again, some of the environmental policies so, to me, that's the place to be i would be careful with very high fliers. things that benefitted the most, again, from free money it would be crypto, nfts, companies trading at 10 times sales. there's a variety of things that have made sense when interest rates are zero you know, one of the things we like to talk about is the idea that interest rates to the financial world are a little bit like gravity for the physical world. >> uh-huh. >> which is to say that, you know, in the zero being

weightlessness environment, i can get a golf ball a thousand yards. a lot of investments make a lot of sense when interest rates are zero. >> yeah. >> when interest rates are no longer zero, it's a different story. i think that's what investors are going to have to get accustomed to. >> maybe we are no longer on the moon jason, great to see you! [ laughter ] >> great to see you. >> thank you very much andrew, i will see you on friday i know you'll be back here tomorrow see you later! right now time for "squawk on the street." ♪ ♪ good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with david faber and jim cramer stocks look to extend to the fourth day we have the first decline in adp employment in over a year. down 300,000 and a big hour on tap. the ceos of gm, amd, and starbucks this morning >> we'll jump in, though, to alphabet jim, you'v